Analysis of ACI Godrej’s LC process: challenges faced during LC restrictions and strategies for overcoming the situation

Abstract

In order to fulfill the requirements for my bachelor's degree in Business Administration from BRAC, I had to undergo a three-month internship at the Finance and Accounts Department under Treasury Unit of ACI Godrej Agrovet Private Limited. The three-month internship program served as the basis for this report. A summary of the company and how the internship went is provided in this report. Both primary and secondary data were used in the report's preparation. The primary data was collected from company supervisor and few employees, my regular observations and internship duties. On the other hand, secondary data was obtained from the company's website, different articles and news sources. Chapter one of the report highlights the internship experience overall, outlining its duties, difficulties, benefits, student contribution, and feedback for maximizing effectiveness and understanding potential shortcomings. The responsibilities helped me to gain professional skills and understanding the company's LC process. The experience was enjoyable and helpful because there were no significance difficulties in the workplace, making it an excellent learning platform for prospective applicants. This research of chapter two was conducted with the aim of reviewing ACI Godrej's business practices, including its background, marketing and managerial strategies, information management system as well as its financial condition. They maintain their business productively with fair compensation system, an effective training program, and the use of efficient software and accounting practices. The financial performance of the company was determined by the liquidity, profitability, efficiency, and DuPont analysis. Despite facing some financial challenges after Covid period, the company managed to maintain smooth operations in each department and a healthy financial condition. The chapter three which is the project part was the main focused on this report. The report's major objective was to detail their Letter of Credit process and the difficulties they encountered in operating it. By analyzing, it was found that, the global economic crisis has led to significant challenges for businesses in international trading. As a result, industries in Bangladesh faced around 30 % of reduction in importing raw materials due to strict restrictions. Finally, the report concludes by describing the adaptive measures taken by the company to address the issues along with some suggestions to get back the situation normal.