The Role of Accounting in Maliban Biscuit Manufactories Ltd

🧾Introduction

The language of business is accounting. In order to facilitate effective resource allocation, strategic decision-making, and legal compliance, it is an essential function that records, categories, and interprets financial data. Accounting now plays a role that goes beyond simple bookkeeping in the fast-paced, globally integrated economy of today. Financial forecasting, risk assessment, ethical reporting, and the application of cutting-edge digital tools like ERP systems and analytics driven by artificial intelligence are now all included.

Accurate and timely accounting is crucial for evaluating financial health, reporting to stakeholders, and guaranteeing legal and regulatory compliance, regardless of the size of the business. Through appropriate planning and control mechanisms, accounting systems assist firms in achieving long-term goals, detecting financial anomalies, and efficiently budgeting.

This blog focusses on Maliban Biscuit Manufactories Ltd., a well-known food manufacturing company in Sri Lanka, to examine how accounting works in a practical situation. Since its founding in 1954, Maliban has established a solid reputation for producing high-quality baked goods and biscuits both domestically in Sri Lanka and internationally. Maliban needs a strong accounting system to oversee its intricate operations, handle finances, and satisfy stakeholders because of its extensive operation, which consists of manufacturing, logistics, and retail networks.

This blog will critically assess the ways in which accounting helps Maliban succeed and how it facilitates moral, tactical, and operational choices in a fiercely competitive corporate climate.

                                    Products of Maliban

Maliban Biscuit Manufactories Ltd – Head Office in Colombo, Sri Lanka.

Purpose and Scope of Accounting in Complex Operating Environments.

Accounting is a systematic approach to monitoring, evaluating, and interpreting financial data in big businesses like Maliban. Maliban works in a cutthroat industry where expansion depends on effectiveness, cost containment, and openness. These strategic needs are supported by accounting.

Purpose of Accounting

Recording Transactions: Uses ERP systems to keep thorough records of sales, expenses, and manufacturing costs.

Compliance: Verifies that Sri Lanka Accounting Standards (SLFRS) are followed in the preparation of financial statements.

Making Decisions: Assists managers with choices about investments, pricing, and cost control.

Performance measurement: helps in assessing the profitability of a product line and the effectiveness of production.

Accounting's Scope

In Maliban, accounting includes:

Financial Accounting: Tax filings and investor reporting are handled by financial accounting.

Management Accounting: Internal choices like product price and marketing expenditures are guided by management accounting.

Cost accounting: Monitors labor and raw material expenses to keep margins under control.

Budgetary Control: Monitoring is done through variance analysis and annual budgets.

Critical Evaluation: Accounting's Role in

Decision Making and Meeting Stakeholder 

Needs

Accounting acts as a conduit for information between the company and its stakeholders. At Maliban, timely financial data guarantees regulatory compliance, supports managers in making well-informed decisions, and links operations with stakeholder expectations.

 

Organizational Needs

Maliban bases its competitive product pricing on precise costing data. Accounting data facilitates dynamic pricing or supplier renegotiations as ingredient prices increase.

Stakeholder Expectations

• Profitability is reflected in financial reports, and shareholders expect returns.
• The government mandates tax compliance, which is maintained by maintaining correct records.

• Financial stability is essential to employees; accounting guarantees accurate payment and forecasting.

• Customers respect moral company practices, which are reinforced by sustainability reporting and financial transparency.

 

Societal Needs

Accounting enables:

• Sustainability Reporting (such as monitoring carbon emissions)
• CSR Budgeting (e.g., community support, donations)
• Metrics for job creation using payroll and employment data.

Main Branches of Accounting and Skills 

Required

Branches of Accounting

 

Branch	Description
Financial Accounting	Prepares SLFRS-compliant statements for external stakeholders
Management Accounting	Internal reports for planning and controlling business operations
Cost Accounting	Analyzes and controls production costs
Tax Accounting	Ensures compliance with Inland Revenue Department
Auditing	Reviews internal processes and external reporting accuracy

 

 Skills and Competencies of Accountants at Maliban

• Numerical Accuracy
• ERP Software Proficiency (e.g., SAP)
• Analytical Thinking
• Communication Skills – For presenting findings to non-finance managers
• Ethical Integrity
• Adaptability – To regulatory and economic changes

 

 

 Accounting Systems and Role of Technology

Accounting Systems in Use

An integrated ERP system (SAP) is used by Maliban for:

• Financials
• Inventory
• Procurement
• Costing

 

 

SAP ERP

 

 Role of Technology

• Cloud-based access: gives managers real-time access to reports.
• Data analytics: A tool for predicting consumer demand and trends.
• Automation: Lowers human mistake in tax filing, payroll, and invoicing.
• Mobile Dashboards: Field managers can monitor sales KPIs in real time with mobile dashboards.

 

 Ethics, Regulation and Compliance

Ethical Standards

     Maliban's accountants adhere to the IFAC (International Federation of Accountants) framework-based Code of Ethics published by CA Sri Lanka:

•  Integrity
• Objectivity
• Professional competence
• Confidentiality
• Professional behavior

Internal ethics training sessions are held on a regular basis to make sure staff members follow these guidelines.

Regulatory Framework

 Maliban conforms to:

• SLFRS: For financial statement preparation
• The Inland Revenue Act: For tax and VAT filings
• The 2007 Companies Act No. 7: Concerning corporate governance
• To guarantee complete compliance, internal audits are carried out every three months.

Constraints or Threats

Regulatory complexity: Resources may be strained as a result of regular changes to tax or reporting requirements.

Compliance costs: Hiring certified auditors and legal counsel can be costly for big businesses.

Pressure for earnings manipulation: Maliban's strict ethical controls help combat the temptation to engage in unethical behavior in highly competitive businesses. 

 

🔚 Conclusion

 A key factor in determining the performance of modern businesses is accounting. It goes beyond simple accounting at Maliban Biscuit Manufactories Ltd. and is now a crucial component of stakeholder engagement, risk management, and strategic planning. Accounting helps Maliban be competitive, compliant, and trustworthy in the market thanks to moral business practices, technology, and knowledgeable experts. The accounting function is still not only relevant, but also essential in the ever-changing business world.