emco industries final
TRANSCRIPT
EMCO Industries Ltd
Internship Report
Presented To
Dr. Liaqat Ali
Principal,
Hailey College of
Commerce
University of the
Punjab
Presented ByAbdullah Jawad
Roll No.: 4778th semester
B.com HonorsSession: 2006-2010
Hailey College of Commerce
Hailey College of Commerce
University of the Punjab
1
Letter of Transmittal
11 April 2023
Prof. Hafiz Abdul Rasheed
Hailey College of Commerce
University of the Punjab, Lahore.
Subject: Submission of the internship report.
Dear Sir
I feel immense pleasure in presenting to your good self, the internship report
as part of our course requirement. I found this report to be truly challenging in
many aspects, indeed very interesting in relation to the various interpretational and
engrossing exercises. Writing this report itself was truly comprehensive learning
experience.
The report covers some background and introduction of Emco Industries. It
covers analysis of financial ratios of two recent years and includes SWOT analysis.
It also covers the details of skills acquired during the internship period and
conclusions and recommendations.
I have tried my level best to complete the report with respect to the desired
requirements. However, if any explaining is required, I would be honored to oblige.
Yours sincerely
Abdullah Jawad
Roll No.: 477
8th semester
B.com Honors
2006-2010
Hailey College of Commerce
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Acknowledgement
I am very grateful to Accounts Manager Mr. Rizwan for giving me the
opportunity to do the internship.
I am also thankful to the employees of Emco Industries for their cooperation.
They have been very helpful in teaching me different procedures of relevant
information in as much details as possible. They never hesitated or did not feel
disturbed when I asked questions. It was a great opportunity to do internship in
such an organization. The experiences I have gathered will be very beneficial in
my career.
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Table of Contents
Acknowledgement.............................................................................................................................2
Table of Contents...............................................................................................................................3
List of Illustrations..............................................................................................................................5
Executive Summary............................................................................................................................6
Historical Overview/Introduction......................................................................................................7
Group...............................................................................................................................................10
Vision...............................................................................................................................................12
Objectives........................................................................................................................................13
Mission Statement...........................................................................................................................13
ORGANIZATION STRUCTURE............................................................................................................14
Registered / Head Office..................................................................................................................16
COMMENTS ON ORGANIZATIONAL.................................................................................................18
Products...........................................................................................................................................19
Projects............................................................................................................................................25
Technical specifications...................................................................................................................26
Test reports..................................................................................................................................27
Initial Dealers...............................................................................................................................27
Laboratory.......................................................................................................................................28
Quality Control.................................................................................................................................30
Competitive Advantage of Emco Tiles..............................................................................................32
SWOT Analysis.................................................................................................................................33
Strengths:.....................................................................................................................................33
Weaknesses.................................................................................................................................33
Opportunities...............................................................................................................................34
Threats.........................................................................................................................................34
PEST Analysis...................................................................................................................................35
Ratio Analysis...................................................................................................................................41
Current Ratio................................................................................................................................41
Debt Ratio....................................................................................................................................42
Debt/Equity Ratio........................................................................................................................43
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Return on Assets (ROA)................................................................................................................44
RETURN ON INVESTMENT (ROI)...................................................................................................45
RETURN ON Equity (ROE).............................................................................................................46
Operating Cash Flow or Sales Ratio..............................................................................................47
Net Worth....................................................................................................................................48
Financial Statements........................................................................................................................49
Balance Sheet...................................................................................Error! Bookmark not defined.
Profit and Loss Account................................................................................................................51
STATEMENT OF CHANGES IN EQUITY..........................................................................................52
CASH FLOW STATEMENT.............................................................................................................53
Skills Acquired during the Internship Program.................................................................................54
Purchase Department..................................................................................................................54
Cash & Bank Department.............................................................................................................57
Display Centre..............................................................................................................................59
Inventory Department.................................................................................................................59
Marketing Department................................................................................................................59
Sales Department:.......................................................................................................................61
Recommendations...........................................................................................................................63
Conclusion.......................................................................................................................................65
Bibliography.....................................................................................................................................66
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List of Illustrations
Tables
Table 1 Current Ratio..........................................................................................................41
Table 2 Debt Ratio...............................................................................................................42
Table 3 Debt to Equity Ratio...............................................................................................43
Table 4 Return on Assets.................................................................................................... 44
Table 5 Return on Investment.............................................................................................45
Table 6 Return on Equity.....................................................................................................46
Table 7 Sales Ratio..............................................................................................................47
Table 8 Net Worth.............................................................................................................. 48
Table 9 Balance Sheet.........................................................................................................49
Table 10 Profit and Loss Statement....................................................................................51
Table 11 Statement of Changes in Equity...........................................................................52
Table 12 Cash Flow Statement............................................................................................53
Figures
Figure 1 current Ratio.........................................................................................................41Figure 2 Debt Ratio.............................................................................................................42Figure 3 Debt/Equty Ratio...................................................................................................43Figure 4 Return on Assets...................................................................................................44Figure 5 Return on Investment...........................................................................................45Figure 6 Return on Equity...................................................................................................46Figure 7 Sales Ratio.............................................................................................................47Figure 8Net Worth..............................................................................................................48Figure 9 Brand Associations................................................................................................61
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Executive Summary
As per the requirement for the B.com honors degree in Hailey College of
commerce, University of the Punjab Lahore, I took up internship at Emco Industries
Lahore. The duration of internship was 6 weeks. This report is based on the
experience and knowledge which I gained during my internship at Emco industries.
First I have discussed about the introduction of the company. Emco Industries
Limited, a publicly listed company, was established in 1931 and has been involved
in trading of electrical goods. In 1951, a very modest beginning was made by
setting up a small facility located in the basement of the offices of The Imperial
Electric Company (Pvt.) Ltd., for the production of electrical accessories.
After that I have explained the groups on which company is consisted,
which include Emco Industries Limited, The Imperial Electric Co. (Pvt.) Limited,
ICC (Pvt.) Limited, ICC Textiles Limited, and Arabian Electric Transmission Line
Construction Co.
Then vision and mission statements are given and also its objectives.
Organizational structure is explained and its corporate structure along with offices.
Emco’s products are mainly divided into two parts that are Insulators and Ceramic
tiles. Both types are explained in details. There are different types of insulators
which are given in the report. Ceramic tiles are also in different designs, sizes and
types. Types and sizes of tiles are also mentioned in this section.
Company has worked on different projects which are explained. Then
information about technical specifications, test reports, dealers and quality control
is given.
Then situational issues are explained which include competitor’s analysis,
its competitive advantage, SWOT analysis, and PEST analysis in a precise
manner. 4 P’s of Marketing is explained in terms of the company strategies.
Then I have conducted ratio analysis of Emco Industries in some details
with bar charts. The analysis is done by comparing two years financial statements;
year 2008 and year 2009. Each ratio is compared and then interpreted in details.
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Then Skills acquired during the program is explained. I worked in
accounting and marketing department and what I learned from staff and
procedures is explained in the report.
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Historical Overview/Introduction
The parent company, The Imperial Electric Company (Pvt.) Ltd., was
established in 1931 and has been involved in trading of electrical goods. Soon
after the creation of Pakistan, the needs for import substitution was felt and the
sponsors of the parent company made the decision to establish a small
manufacturing unit for electrical goods.
In 1951, a very modest beginning was made by setting up a small facility
located in the basement of the offices of The Imperial Electric Company (Pvt.) Ltd.,
for the production of electrical accessories. With single minded initiative and
efforts of Late Mr. Ata ur Rehman (the former Managing Director), the facilities
were continuously upgraded and a full fledged facility was established in Lahore,
Pakistan by 1954 under the same name of Electrical Equipment Manufacturing
Co. Ltd. (EMCO). The first comprehensive Insulator Manufacturing Plant was in
operation with the active participation, know-how and machinery coming from
Japan and France.
Keeping pace with the ever increasing and diversified demand of Insulators
for national utilities and electrical industries in Pakistan, it was decided in 1965 to
expand the facilities to produce all types of insulators including those required for
extra high tension lines. At this stage, Associated Engineers (Pvt.) Ltd., joined
hands with The Imperial Electric Company (Pvt.) Ltd. (IEC) to further expand
EMCO.
The new plant located at Lahore Sheikhupura Road, Lahore was
commissioned in 1968 under the guidance of competent and seasoned engineers
of NGK Insulators, Japan. Since electrical ceramics is a very highly specialized
industry, requiring skill, experience, and time tested formulae and proven know-
how, EMCO signed a technical collaboration agreement for fifteen years with NGK,
Japan, who are the world's largest and most renowned manufacturers of
insulators. With the active support of the personnel from NGK and Pakistani
engineers, EMCO was producing quality insulators using mostly local raw
materials. The plant is now manned by a team of highly qualified and experienced
Pakistani engineer’s apart form over 600 technicians and workers. The company
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has a present installed annual capacity for the production of 6000 tons of insulators
which is being upgraded to 7500 tons by the end of 2006.
With the untiring efforts of the present Chairman, Mr. S. A.Mannan and the
late Managing Director, Mr. Atta ur Rehman, the company continued to be one of
the best facilities manufacturing quality insulators in the world. In 1983, the
company was listed on the Stock Exchanges of Pakistan as a Public Ltd., company
and was renamed as EMCO Industries Limited.
In addition to electric porcelain, EMCO runs a full fledged department for the
production of chemical porcelain such as acid proof lining bricks, ranching rings,
saddles and special refractories. This line is now fully developed to cater to the
requirements of beverage factories, milk plants, chemical, edible oil, fertilizer
industries, for acid proof wares. EMCO, in 1995, signed a licensing agreement
with M/S. SIEMENS, Germany to manufacture Surge Arresters from 66kv to 420kv
(max. system voltage).
EMCO, in 2005, signed a know-how contract with M/S. HAPAM B.V.,
Netherlands, for the manufacturing of Disconnecting Switches.
EMCO firmly believes in a continuous research and development
programmed to keep abreast with ever-diversifying requirements of porcelain
insulators, chemical porcelain and ceramic tiles. The normal production of
insulators requires rigid quality control, with limited performance tolerances
allowable. Considerable efforts, as such, are directed towards the production of
insulators with better performance characteristics and EMCO has all the in-house
testing facilities for this purpose. Moreover, our progress and development is
benefited by the rich experience gathered from NGK of Japan. EMCO is still the
only unit for manufacturing high tension insulators in Pakistan and is not only
supplying the entire requirement of the country, but is also exporting to developing
and developed countries all over the world.
Having achieved an enviable position in the field of electric ceramics,
EMCO, in 1983 decided to broad-base their manufacturing activities and utilize
their long experience in ceramics by adding an ultra modern plant for the
manufacturing of decorative WALL TILES with an annual capacity of 700,000
square meters. The entire machinery for the manufacture of tiles was supplied by
world renowned machinery manufacturers from Germany and Italy. This plant was
commissioned in 1985.
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Another plant for Floor Tiles having an annual capacity of 1,000,000 square
meters was commissioned in late 1991. The machinery and know-how was
supplied by SACMI of Italy and the plant is producing comprehensive range of
Floor and Facing Tiles according to international standards. In 1996, the need was
felt to increase the production of the Wall Tile and subsequently an agreement was
signed with an Italian Company to supply machinery and equipment to increase
the output of the Wall Tile plant form 700,000 to 1,500,000 square meters per
annum. This expanded facility was completed in 1997. Currently the overall
production capacity of both plants is 2,500,000 square meters. EMCO is the
largest ceramic complex in Pakistan producing over 30,000 tons of ceramics
material annually.
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Group
The parent company Imperial Electric Company (Pvt.) Ltd. was established
in 1931 and the group now consists of the following companies
Emco Industries Limited
Established in the year 1954.
Commonly known as “EMCO”, they produce all types and sizes of high and
low voltage porcelain insulators and other porcelain products including high voltage
switchgear equipment. The plant was set up with the technical collaboration of
NGK Insulators Limited of Japan. EMCO is meeting Pakistan’s entire demand for
insulators and also export to a number of countries in Middle East, Africa and
Europe. EMCO also produces Wall and Floor tiles.
The Imperial Electric Co. (Pvt.) Limited
Established in the year 1931.
They are leading OEM of Diesel Generating Sets (5 ~ 750 KVA). They are
also engaged in the indenting and sale of power generation, transmission and
distribution equipment and other industrial materials. They represent the world's
most renowned manufacturers which includes Copper weld, Puma Power Plants,
Alcoa, Foster Wheeler and Mirrlees Blackstone.
ICC (Pvt.) Limited
Established in the year 1958.
The company is engaged in design, supply of materials and construction of
transmission lines, substations, industrial plants, process equipment and pre-
stressed concrete pole plants.
ICC Textiles Limited
Established in the year 1990
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The modern weaving plant is producing premium quality grey fabric,
primarily for the export market. It has an annual capacity to produce 40 million
square meters of grey fabric based on middle range cotton and cotton polyester
blends. The plant is equipped with 100 SulzerRuti Projectile P7100 weaving
machines and 72 high speed air jet JAT 710 weaving machines of various widths
from Toyota, Japan, along with complete European back process and ancillary
equipment.
Arabian Electric Transmission Line Construction Co.
Established in the year 1998
Commonly known as AETCON, was established as a joint venture between
ICC (Pvt.) Ltd., (Lahore, Pakistan) and Tamimi Company (Dammam, Saudi Arabia)
for the construction of High Voltage Transmission Lines and Sub-stations on Turn-
key basis. AETCON is presently registered in Abu Dhabi and Kingdom of Saudi
Arabia.
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Vision
While enhancing our Brand as a Market Leader, Focusing our Human
Capital, continues to delight our Customers in the field of Building Materials,
Offering Best Quality Innovative Products at Prices Be-Fitting Stile Brand.
Improving Efficiency, Conserving Energy and being Environmental Friendly. Taking
into account the Stakeholders Interest.
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Objectives
“Making our customers winners by constantly exceeding their expectations.”
Mission Statement
Our Mission is to maintain our position as the leader in the tile industry in
Pakistan and for this purpose we will continue to focus on:
We are committed to quality products and will provide our customers with
innovative sizes, designs and color scheme that they will be delighted to
have and shall provide them with excellent services to earn their loyalty
We shall treat our employees fairly and shall provide conducive working
environment for them to learn and to grow with the company
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The company shall earn adequate profits for its progress and growth and for
providing reasonable return to its stakeholder
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ORGANIZATION STRUCTURE
Company EMCO Industries
Major Industry Electronic Products
Sub Industry Ceramic Tiles
Country PAKISTAN
Employees 1200
Corporate Information
Management Team
S.A. Mannan
Chairman
Tariq Rehman
Managing Director
Haris Noorani
Director Marketing
Suhail Mannan
Director Production
Salem Rehman
Operative Director
Ahsan Mannan
Operative Director
Mumtaz Hussain
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General Manager Plant(Insulator & Tile)
Mansoor Jamal Butt
Chief Financial Officer
General Manager Marketing (Tile Division)
Atti ur Rehman Qureshi
Manager (S&M) Insulators
Auditors
Chartered Accountants
A. F. Ferguson & Co.
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Registered / Head Office
Head Office
119-E/1, Hali Road, Gulberg-III, Lahore.P.O.Box No.36
Phone: (092) (42) 3587 2181 - 84
Fax: (092) (42) 3587 2191
Email: [email protected]
Factory Tile Division
19-Km, Lahore Sheikhupura Road, Lahore.
Phone: (092) (42) 7970293-4, 7970195
Fax: (092) (42) 7970593
Email: [email protected]
Factory Insulator Division
19-Km, Lahore Sheikhupura Road, Lahore.
Phone: (092) (42) 7970293-4, 7970195
Fax: (092) (42) 7970592
Email: [email protected]
Regional Office Islamabad
Plot No.269-A, Street No.6, I-9/3, Industrial Area, Islamabad, Pakistan
Phone: (092) (51) 443-1719/21
Fax: (092) (51) 443-0348
Email: [email protected]
Regional Office Karachi
45-C.P & Berar Housing Society Block 7 & 8, Amir Khusroo Road, Karachi.
Phone: (092) (21) 454 9827 - 9
Fax: (092) (21) 454 9861
Email: [email protected]
Regional Office Lahore
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204-Ferozpur Road, Behind Rehmanpura Bus Stop, Lahore, Pakistan.
Phone: (092) (42) 753-2802 - 3
Fax: (092) (42) 753-2801
Email: [email protected]
Display Centre Lahore
204-Ferozpur Road, Behind Rehmanpura Bus Stop, Lahore, Pakistan.
Phone: (092) (42) 753-2802 - 3
Fax: (092) (42) 753-2801
Email: [email protected]
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COMMENTS ON ORGANIZATIONAL
STRUCTURE
The authority in the organization flows from top to bottom and decisions are
highly centralized. Due to centralized decisions there is employee empowerment
and authority is not delegated so freely. Most of the decisions at the top level of
management and there is less involvement by the first managers.
As there is functional departmentalization in the organization therefore
effective evaluation of each department output can be made and there is an
efficient use of resources.
SPECIALIZATION
Every individual in the organization has required qualification in his special
field therefore whole organization seems to be highly specialized.
PROFESSIONALISM
Professionalism is high in the organization, whole staff requires highest
degrees and every individual contributes in the efficient working of the
organization.
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Products
Emco industries have two types of products.
1. Insulators
2. Ceramic Tiles
Insulators
Suspension Insulators
Aero Form Insulators
Fog Type Insulators
Normal Insulators
Pin Type Insulators
Normal Pin Type Insulators
Post Insulators
Line Post Insulators
Station Post Insulators
Transformer Bushings
Transformer Bushing
Surge Arrestor
11KV
132KV
Dropout Cutout Insulator
Cutout Insulator
Shackle Insulator
Shackle Insulator
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Guy Strain Insulator
Guy Strain Insulator
Long Rod Insulator
Disconnect Switches
Suspension Insulators
Normal Insulators
Aero Form Insulators
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Fog Type Insulators
Pin Type Insulators
Normal Pin Type Insulators
B.S. Standard Type
Transformer Bushings
Transformer Bushing
Surge Arrestor
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11KV
132KV
Dropout Cutout Insulator
Cutout Insulator
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Shackle Insulator
Guy Strain Insulator
Long Rod Insulator
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Ceramic Tiles
TRJ-805-006
Traditional Series
Size: 20 x 20 CM
TXB-008-107
Prints & Effects
Size: 30 x 30 CM
Types
Geometric Series
Hala Series
Plain Deep Base
Plain pastel Base
Prints and Effects
Rustic Series(Floor Tiles)
Semi Matt – Granallia
Semi Matt –Plain
Semi Matt –Shaded
Semi Matt –Texture
Texture Dark Base
Texture Light Base
Traditional Series
Sizes
20x20 cm
25x25 cm
25x33 cm
30x30 cm
38x38 cm
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Projects
Project : MALL ROAD UNDER PASS
NesPak
Lahore, Pakistan.
This project was designed by EMCO. Emco tiles 30x30 cm are
installed on both sides of walls.
Project : PACE PAKISTAN LTD.
Emco
Main Boulevard Gulberg, Lahore, Pakistan.
Emco tiles 30x30 cm installed in all shops of three floors & wall
tiles installed in different washrooms.
Project : SAHARA FOR LIFE TRUST
Sughra Shafi Hospital
Narowal, Pakistan.
Emco tiles 20x25cm & 20x20 cm installed in major parts of the
hospital.
Project : ISLAMIC UNIVERSITY
Higher Education Commission
Islamabad, Pakistan.
Emco tiles both glazed & matt 20x20 cm installed in various
parts of the university.
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Technical specifications
Technical specifications of glazed floor tile according to European standard
norms en-177 group BII, A
CHARACTERISTICSREQUIRED
VALUES
VALUES OF
EMCO
PRODUTS
TEST
ACCORDING TO
EUROPEAN
NORM
Length & Width ± 0.5% ± 0.4% EN - 98
Thickness ± 5.0% ± 2.5% EN - 98
Straightness of Sides ± 0.5% ± 0.15% EN - 98
Rectangularity ± 0.6% ± 0.25% EN - 98
Surface Flatness (a)
Deviation From Centre
Curvature
± 0.5% ± 0.2% EN - 98
Surface Flatness (b) Edge
Curvature± 0.5% ± 0.25% EN - 98
Surface Quality
Minimum 95% will
be free from
visible defects
¡Ý 95% EN - 98
Water AbsorptionAv.3<6 Individual
Maximum 6.6
Av.3<4
Individual
Maximum 4.5
EN - 98
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Test reports
Analytical/test reports of ceramics wall tiles by P.C.S.I.R
Test Results
Water Absorption 13%
Dimensions Thickness 6.5 mm ± 2%
Dimensions
Rectangularity± 0.2%
Surface Flatness -
Centre Curvature± 0.2%
Surface Flatness -
Edge Curvature± 0.2%
Surface Quality >95%
Modulus Rupture 215 Kg/Cm
Initial Dealers
Dealer Name City Address Phone Fax Contact Name
MAGOON
SONS
Lahor
e
85-
FEROZEPUR
ROAD ICHRA
37531490
-1
3758751
7
MR.TANVEER
, MR.ALI
M.I.SANITAR
Y STORE
Lahor
e
186-
FEROZEPUR
ROAD OPP
GALAXY
CINEMA
7575494-
5MR.IDREES
A.H.TRADER
S
Lahor
e
172-
H.COMMERCIA
L ZONE,
5730301-
5728839
MR.IMRAN
MALIK
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Laboratory
EMCO maintains a well equipped laboratory where fundamental research
for development and routine quality control tests are carried out. Following are the
quality control tests performed in laboratory on Raw Materials, Porcelain Bodies,
Glazes, Cement and Plaster of Paris
.
Raw Materials
* Visual Check
* Refractoriness
* Particle Size
* pH
* Viscosity
* Chemical Analysis
Porcelain Bodies
* Particle Size
* Water Content
* Viscosity & Temperature
* pH
* Cake Hardness
* Foreign Substance
* Shrinkage
* Sintering
* Refractoriness
* Chemical Analysis
* Thermal Shock Resistance
* Thermal Expansion
* Mechanical Strength
* Dielectric Strength
Glazes
* Particle Size
* Water Content
* Viscosity
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* Color & Gloss
* Refractoriness
* Thermal Expansion
* Chemical Analysis
* High Temperature Fluidity
* Body & Glaze Matching
* Electrical Conductivity
Cement
* Flow Value
* Mixing Ratio
* Setting Time
* Tensile Strength
* Compressive Strength
* Thermal Expansion
Plaster of Paris
* Mixing Ratio
* Setting Time
* Tensile Strength
* Expansion
* Sieve Analysis
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Quality Control
EMCO has a very strict quality system and checks are kept at a number of
stations of the manufacturing process. The system of quality assurance is
according to ISO 9001.
Situation Issues
Competitor’s analysis
• Sonex Tiles.
• National Tiles.
• Unorganized local manufacturers.
• Imported Brands.
Sonex Tiles
Sonex Tiles is a big competitor of Emco Tiles. It is also located in
Gujranwala. Sonex Tiles is a new player in the market and it only produces Floor
Tiles. While Emco Tiles produce both Wall and Floor Tiles which is a competitive
edge of it over Sonex Tiles. Also Sonex Tiles have less design s and colors as
compare to Emco Tiles. The strategy of Sonex Tiles is that are doing a direct
competition with Emco Tiles only in Floor Tiles category but also try to capture
those segments which is not targeted by Emco Tiles by producing some low price
low quality products for low end market segment. They have a distribution network
in all over the Pakistan. They distribute their product through selected dealers in
different parts of the country.
National Tiles
National Tiles is also a major Player in Pakistan Tiles industry. But it only
manufactures wall tiles. It is located in Karachi and it is mostly competing with
Emco Tiles in Sindh areas and only in Wall Tiles category. National Tiles mainly
target the Sindh market due to low competition in Sindh Market.
Unorganized Local Manufacturers
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One of the main competitors of Emco Tiles is the Unorganized Local
manufacturers. Although these small local manufacturers have less capacity of
production as compare to the Emco Tiles. But they produce low quality with low
prices. So by offering low prices they become a big threat to big manufacturers.
These local manufacturers attract the customers who are more price sensitive as
compared to quality. Also these small local manufacturers distribute their products
to a large number of retailers with some incentive due to their low prices. So by
offering low quality products and cheaper products these local manufacturers are
able to capture the market share from the big manufacturers.
Imported Brands
Some niche segment of market is also captured by importers. In addition
small quantity of some multinational brands is available local market. These brands
are imported from Spain, Italy, as well as from UK and USA.
These brands are mostly targeted in Lahore and Karachi and they target high end
segment of the market.
Chinese Manufacturers:
China is also a big competitor of Emco Tiles. By offering low prices with low
quality as compared to Emco Tiles China is able to capture the market share.
China was one of the major threats to the local manufacturers until Government
imposes anti dumping duties on Chinese manufacturers. But still China is
competing in the market through its distribution in all over the country and still a big
threat for local manufactures.
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Competitive Advantage of Emco Tiles
(1) Emco Tiles produce high quality and high standards products which other
competitors can not match.
(2) Emco Tiles Produce waste range of designs styles and colors range which
other competitors can not produce.
(3) They have latest Italian technological plant due to which their production
capacity is more than 25000 Sq. /meter per day which is another competitive
advantage of Emco Tiles over its competitors.
Market Segmentation
Emco Tiles has segmented the target market on the basis of the need of
customers. They have divided the market into low to high end market. But they are
mostly focus on high end market segment. They produce different type of tiles with
different price ranges. Especially for high end market segment they produce high
quality products with high prices and for middle end market segment they produce
products with relatively low prices and low quality as compared to the high end
market. So Emco Tiles produce different quality products with different prices for
different market segments.
Target Market
Now Tiles have become an essential part for the decoration of our
residential and commercial buildings. So our target market is that people who can
afford and who want to make their lives worth living by using these tiles and who
focus on beauty as well as luxury and style and design. So company main target
market is upper middle class and elite class because lower middle class and poor
class customers can not buy tiles.
Intended Positioning
The positioning which Emco Tiles want to produce in the mind of customers
is that they will provide them high quality and stylish products to improve their life
style and make their life easy and beautiful.
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SWOT Analysis
Strengths:
(1) One of the main strength of Emco Tiles is their latest technological imported
plant which is highly computerized.
(2) One of the strength of Emco Tiles is their highly professionals and skilled
foreign employees who are working there for more that 13 years.
(3) One of the strength of Emco Tiles is its production capacity. It can produce
more that 25000 Sq. /meter per day which is the highest as compared to the
local competitors. Emco Tiles has the capacity to meet the huge demand.
(4) They have a computerized system through which communication between
different departments can be done faster.
(5) They have their own Research and Development department and they
always try to seek the new opportunities to improve the quality and bringing
new innovations.
(6) They have a big distribution network all over the Pakistan. They have good
and long term relationships with their dealers.
(7) One of their strength is their loyal and highly skilled labors.
(8) They can produce waste range of designs, styles and colors which is one of
the major strength of Emco Tiles.
Weaknesses
(1) One weakness of Emco Tiles is the maintenance and repairing of its
manufacturing plant. Once there is a problem in plant then it requires a whole day
for repairing and again become in working positions so it could be another
weakness of Emco tiles.
(2) The another weakness of Emco tiles is that networking system because there
whole internal communication based on networking so if there could be any
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problem in main server so their whole communication will stop or break down so if
there is any problem or fault in main server it could be another weakness of the
Emco tiles.
(3) As company divides whole Pakistan into different zones sop if there is miss
communication between each zone and company and if it effects their supply chain
process than its could be another weakness of the company.
Opportunities
(1) One of the big opportunities for Emco Tiles is the growing rate of
construction which increases the demand for tiles. So that’s why Emco Tiles
is planning to expand their production capacity to meet the future demand.
(2) One opportunity for Emco Tiles is that Government imposed anti dumping
duties on Chinese Tiles which restrict Chinese manufacturers to export the
tiles in Pakistani market with low prices. So now their cost increases and
they forced to sell the tiles at higher price which is relatively equal to local
tiles.
(3) The Government reduces the taxes on exports of tiles and also increasing
demand in foreign market provides an opportunity for Emco Tiles to
increase its sales by exporting its tiles.
Threats
(1) One of the threats for Emco Tiles in local market is huge amount of tiles supply
from unorganized local manufacturers. This is a threat for reduction in market
share of Emco Tiles.
(2) One of the threats for Emco Tiles is low entry barriers in the industry. Because
of the growing potential of the industry it becomes an attractive industry for new
entrants. These new players can capture the market share.
(3) One of the threats for Emco Tiles is price wars from the main competitors in the
industry. To capture the market share the local competitors their prices to catch the
more customers and can reduce the market share.
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PEST Analysis
Political factors
The political factors have a huge influence upon the regulation of business.
In Pakistan political environment is not stable. It is very dynamic which affects the
business industries. Government policies are changed during regular intervals of
time. This political instability affects the tiles industry also. In case of Emco Tiles
when the incident of Benazir Bhutto’s death happen. Then during that time their
material was destroyed by the political workers. Their vehicles were destroyed
when they were on the road for distributing the final product. So due to this political
incident Emco Tiles bears a financial loss. Government also has some rules and
regulation for the environment pollution. Emco Tiles claims that they do not pollute
the environment during the manufacturing process of the tiles. The wastage is
managed in sophisticated manner that it does not pollute the environment.
Emco Tiles is the first tile manufacturer in Pakistan which submits the application
to National Tariff Commission against the dumping of Chinese tiles manufacturers.
The result was that Government imposed anti dumping duties on Chinese tiles
which also shows that Government wants to promote and save its local Tiles
industry.
Economical Factors
Marketers need to consider the state of a trading economy in the short and
long terms. Due to economic growth in Pakistan the Tiles industry in Pakistan is
growing. There is a big increase in the construction in the country. The Tiles
industry in Pakistan is in growth stage. Government does not finance enough
money in the Tiles industry to make it more attractive industry. The raw material
which is used in Tiles manufacturing is founded in the province on NWFP and
Balochistan. Mining of the raw material in these areas is done on primitive
techniques including uncontrolled blasts. In majority of the mines basic machinery
and equipment’s are not available. This not only led to wastage but also to low
production of raw material which directly affects the Tiles industry. Government
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does not pay much attention on this which really affects the efficiency of Tiles
industry.
Socio cultural Factors
The social and cultural influence on business varies from country to country.
It is very important these factors are considered. These factors are:
(1) Income level
(2) Population growth rate
(3) Labor mobility
(4) Life style changes
(5) Fashion
(6) Living condition
In Pakistan demographic factors like income level of people is increasing.
Due to which their buying power increases. Also the population is increasing which
results in the construction increase which also results in the increase in demand of
tiles in the country. Also there is a good availability of labor which is a really
favorable condition for tile industry. Now the people in Pakistan are moving
towards change. Their life style is changing. Now it is becoming a fashion to
decorate their homes with beautiful and stylish tiles to give a beautiful look to their
homes. This result is the increase in the demand of tiles in country. The living
condition of people is changing. The rural people are moving towards urbanization
and their living conditions are becoming better and better.
Technological Factors
Technology is a very important factor for an industry. It is vital for
competitive advantage for a firm. For technology the following points should be
considered:
(1) Does technology allows products to be made cheaply and better
quality?
Ans: In Pakistan the technology in Tiles industry does not change very
quickly. In Emco Tiles they use their Italian manufacturing plant for producing good
quality products at affordable prices. This technology is their competitive
advantage.
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(2) Does technology offers consumers and businesses more innovative
products?
Ans: Emco Tiles use their new technological plant to produce more
innovative products. Emco Tiles produce new styles with lot of colors and they
produce more innovative products.
(3) Does technology offers companies a new way to communicate with
consumers?
Ans: Technology changes in the media industry in Pakistan allow the
companies to adopt the new ways of communication with the customers. Now
there are new and advanced medium for communicating the message like digital
signboards and now advertisement can be done through new cable channels.
These new local cable channel are watched every where. So we can say that new
technology offers new and affective ways of communication.
4 Ps
Product
Emco Granite Tile is an ideal medium for coverage of floors and walls in the
interior as well as exteriors in a practical cost effective and durable manner. It is
like impossible to list all the applications of Emco Granite Tile but to mention a few
here are some areas of the application:
(1) Residential
It is used in boundary walls gate pillars, can porches, home lobbies, lounges
drawing and dining, living, bed and bath rooms, kitchens and staircases.
(2) Commercial
It is used in offices, showrooms, shops, plazas, shopping malls, hotels,
restaurants, airports, railways and bus stations, hospitals and clinic, sport
complexes and swimming pools.
(3) Industrial
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It is used in floor covering of all sorts of industrial units, ware houses, workshops,
and depots.
(4) Public Places
It is also used in pathways, footpaths, parking lots, and gas stations.
Qualities of product
Emco Granite Tiles are completely homogenized which means that the color the
texture and the veins run throughout the thickness of the body just like the natural
stone. Unlike what is available in the market in the name of granite, the colors,
design and textures of ceramic granite are not superficial. So from the years of
research and latest Italian technology Emco Granite Tile is a gift for those people
for those who want to upgrade their life style opt for today’s most modern material
to make their life more beautiful.
No Stain
It is easy to clean and offers complete chemical resistance due to extremely
compact homogenous superior surface.
Scratch Resistance
Its solid and compact body protects tile from scratches 13
0% Absorption
No pores through out the tile thickness, extremely compact. This is even
true for areas that have been subject to abrasion.
Max Range Color Sizes
It offers a big list of different sizes and colors.
Maximum Strength
It is pressed by hydraulic pressure with force into compact uniform tile.
Dried and fired at a temperature of 1250C bringing them into one solid and
compact body.
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Fine Edges
Cutting of these hard tiles is done by special diamond blades. That makes
lying of tiles very easy and adds beauty to architecture.
Price
Emco Tiles sets relatively high prices for their products as compare to the
competitors. Prices are sets according to the good quality of the product. The
product with good quality has high prices while the product with normal quality has
relatively low prices. In local market their prices are relatively high than other
competitors. Their high prices reflect their good quality. They have a complete
range of product line and the prices vary between different product types.
Placement
Emco Tiles has big distribution network in all over the country. They have
divided the local market into different zones, like Lahore zone, Gujranwala zone,
Multan zone, etc. Each zone has its own head office and is responsible for
marketing activities in that zone. Emco Tiles distribute the product through its
dealers in different cities. These dealers work with Emco Tiles on agreement basis.
Each dealer is given target sales. After achieving a target sales discounts are
offered to these dealers. These dealers only sell Emco Tiles products. However
these dealers also sell the product to the small local retailers which sell multiband
under one roof. These retailers may have some cheaper brand as well as some
imported brands. Now Emco Tiles has started to establish its own display centers
in major cities. These display centers have not products to sell but just work as to
show and provides the information about the product.
Promotion
Emco Tiles use different promotion tools to promote their product. Like
Advertising, Exhibitions and Seminars.
Advertisement
They use advertisement as a promotion tool. This advertising is done
through TV, bill boards and they also sponsor some sporting activities.
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Exhibitions
Emco Tiles also takes participation in different industrial exhibitions all over
the country. Their representatives give a presentation there and provide the
information about the brand.
Seminars
Emco Tiles also held some seminars for providing the information. In these
seminars business customers are invited. Like Builders and contractors. In these
seminars the information about the brand is provided to the customers.
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Ratio Analysis
Current Ratio
Current Ratio = Current Assets / Current Liabilities
Table 1 Current Ratio
Years 2009 2008
Total Current Assets 921,010,488 774,980,994
Total Current Liabilities 1,041,022,555 918,914,833
Current Ratio 0.884717131 0.84336542
20082009
0.820.830.840.850.860.870.880.89
Current Ratio
Figure 1 current Ratio
Interpretation
The ratio is mainly used to give an idea of the company's ability to pay
back its short-term liabilities (debt and payables) with its short-term assets (cash,
inventory, receivables). From above information it can be seen that, in year 2008,
this ratio was 84.33% but in year 2009 it has Increase to 88.47 %. It shows that in
2009 the more capable the company is of paying its obligations than 2008.
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Debt Ratio
Debt Ratio = Total Debts / Total Assets
Table 2 Debt Ratio
Years 2009 2008
Total Debts 1,611,828,498 1,503,032,423
Total Assets 2,141,815,571 1,924,953,449
Debt Ratio 0.752552 0.780815
20082009
0.730.740.750.760.770.780.79
Debt Ratio
Figure 2 Debt Ratio
Interpretation
Debt ratio basically shows that, how much assets are financed by the debt.
It shows that how much an investor is protected in case of default.
From above information it can be seen that, in year 2008, this ratio was
78.08% but in year 2009 it has decreased to 75.26 %. It shows less debt financing
as compared to previous year.
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Debt/Equity Ratio
Debt/Equity Ratio = Total Debts / Total Equity
Table 3 Debt to Equity Ratio
Years 2009 2008
Total Debts 1,611,828,498 1,503,032,423
Total Equity 118,541,189 -15,857,979
Debt/Equity Ratio 13.5972 -94.7808
Interpretation
This ratio is an alternative to the debt ratio. One of these ratios can be used
by the investor. It shows the basic ratio between debt and equity. A high
debt/equity ratio generally means that a company has been aggressive in financing
its growth with debt. This can result in volatile earnings as a result of the additional
interest expense.
From above information it’s obvious that, in year 2008, this ratio is -94.7808
and this year it has increased to 13.5972. As this ratio increased rapidly, it shows
increase in debt financing as compared to equity.
A b d u l l a h J a w a d ( 4 7 7 )
2008
2009
-100 -80 -60 -40 -20 0 20
Debt/Equity Ratio
Figure 3 Debt/Equity Ratio
48
Return on Assets (ROA)
Return on Assets = Net profit after tax / Total Assets
Table 4 Return on Assets
Years 2009 2008
Net Profit After Tax -81,218,669 -13,826,860
Total Assets 2,141,815,571 1,924,953,449
Return on Assets -0.03792 -0.00718
2008
2009
-0.04 -0.035 -0.03 -0.025 -0.02 -0.015 -0.01 -0.005 0
Return on Assets
Figure 4 Return on Assets
Interpretation
This ratio shows the efficiency of the total assets, means how much
efficiently the company using its assets to earn its net profit.
Company has been running into losses because its expenses and costs are
too high and income is very low. This ratio has slightly increased in year 2009 as
compared to the previous year.
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RETURN ON INVESTMENT (ROI)
Return on Investment = Net profit after tax / Investments
Table 5 Return on Investment
Years 2009 2008
Net Profit After Tax -81,218,669 -13,826,860
Investment 23,290,309 14,526,699
Return on Investment -3.48723 -0.951824
2008
2009
-3.5 -3 -2.5 -2 -1.5 -1 -0.5 0
Return on Investment
Figure 5 Return on Investment
Interpretation
This ratio shows the return or net profit on the investments. Means how
much profit the EMCO is making in terms of investments, rather than total profit.
In this ratio analysis it is observed that ROI is decreasing rapidly due to
increase in loss after tax and also investments as compared to previous year which
shows the poor performance of the company during the current year.
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RETURN ON Equity (ROE)
Return on Equity = Net profit after tax / Total Equity
Table 6 Return on Equity
Years 2009 2008
Net Profit After Tax -81,218,669 -13,826,860
Total Equity 118,541,189 -15,857,979
Return on Equity -0.685151462 0.871918168
2008
2009
-0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1
Return on Equity
Figure 6 Return on Equity
Interpretation
This ratio shows the profit in terms of equity. This loss has increased in year
2009 as compared to the year 2008. The result is because loss has increased in
year 2009 which shows the inefficient operations an allocation of resources, as a
result, the return on the equity is decreased.
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Operating Cash Flow or Sales Ratio
Operating Cash Flow or Sales = Operating Cash Flow / Net Sales
Table 7 Sales Ratio
Years 2009 2008
Operating Cash Flow 18,455,165 -13,959,669
Net Sales 1,550,427,563 1,260,415,348
Sales Ratio 0.011903275 -0.011075451
2008
2009
-0.015 -0.01 -0.005 0 0.005 0.01 0.015
Sales ratio
Figure 7 Sales Ratio
Interpretation
A measure of how well current liabilities are covered by the cash flow
generated from a company's operations. The operating cash flow ratio can gauge
a company's liquidity in the short term.
Emco’s sales ratio in 2009 has increased significantly as compared to year
2008. This increase has occurred because there is a significant increase in both
net sales and operating cash flow and so the sales ratio has increased.
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Net Worth
Net Worth = Total Assets – Total Liabilities
Table 8 Net Worth
Years 2009 2008
Total Assets 2,141,815,571 1,924,953,449
Total Liabilities 1,611,828,498 1,503,032,423
Net Worth 529,987,073 421,921,026
20082009
02,000,0004,000,0006,000,0008,000,000
10,000,000
Net Worth
Figure 8Net Worth
Interpretation
This is the amount by which assets exceed liabilities. This term can be
applied to companies and individuals.
In 2008 Emco’s net worth was 421,921,026 while in 2009 it has increased to
529,987,073. Both company’s total assets and total liabilities have increased
however assets have more increment as compared to liabilities and as a result the
difference between total assets and liabilities increased so net worth also
increased.
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Financial StatementsTable 9 Balance Sheet
2009 2008Rupees Rupees
EQUITY AND LIABILITIES
CAPITAL AND RESERVESAuthorized Capital40000000 (200: 40000000) ordinary shares of RS. 10 each 400,000,000 400,000,000
Issued, subscribed and paid up capital35000000 (2008: 15333333) ordinary shares of Rs. 10 each 350,000,000 153,333,330
Reserves 129,898,526 129,898,526Accumulated Loss -361,357,337 -299,089,835
118,541,189 -15,857,979
SURPLUS ON REVALUATION OF PROPERTY,PLANT AND EQUIPMENT 411,445,884 437,779,005
NON-CURRENT LIABILITES
Long term loans from directors 74,570,569 171,175,969Long term inances 428,301,887 330,914,966Long term morabaha - -Liabilities against assets subject to inance lease 16,315,641 13,212,297Deffered liabilites 23,986,703 23,520,540Deffered taxation 27,631,143 45,293,818
570,805,943 584,117,590CURRENT LIABILITES
Current porion o long term liabilites 83,131,432 100,958,465Short term borrowings from related parties- unsecured 17,324,801 52,226,754Finances under mark-up arrangements -secured 558,086,289 544,813,779Trade and other payables 317,183,765 193,702,191Accrued mark-up on loans and other payables 65,296,268 27,213,644
### 918,914,833CONTIGENCIES AND COMMITMENTS - -
### ###
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ASSETSNON-CURRENT ASSETS
Property, plant and equipment 1,160,830,877 905,453,375Assets subject to inance lease 39,869,002 32,879,427Intangible asset 3,345,300 3,717,000Capital work in progress 7,265,266 201,123,950Long term deposits 7,218,688 4,604,423Long term loans 2,275,750 2,194,280
1,220,804,883 1,149,972,455
CURRENT ASSETS
Stores, spares and loose tools 96,558,665 106,128,537Stock in trade 437,345,036 361,827,225trade debts 278,969,594 225,486,523Loans, advances, deposits, prepayments and other recievables 30,231,265 39,015,627Taxatio - net 19,288,567 3,937,814Cash and back balances 58,617,361 38,585,268
921,010,488 774,980,994
2,141,815,571 1,924,953,449
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Profit and Loss Account
For the year ended June 30, 2009
Table 10 Profit and Loss Statement
2009Rupees
Sales 1,550,427,563Cost of Good Sold 1,283,504,802
Gross profit 266,922,761
Administration expences -70,423,678Distribution and selling costs -116,582,550Other operating expences -4,288,856
-191,295,084
75,627,677
Other operating income 6,408,767
Profit from operation 82,036,444Finance cost -185,187,067
(Loss) before taxation -103,150,623Taxation 21,931,954
(Loss) for the year -81,218,669
(Loss) per share-Basic and diluted -2
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STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED JUNE 30, 2009
Table 11 Statement of Changes in Equity
Balance as per June 30, 2007 153,333,330 39,898,526 90,000,000 -317,263,872
(Loss) for the year - - - -13,826,860
32,028,750
Dividend 200 Rs 0.5 -2,692,396Disposal of revaluted assets 2,664,543
Balance as on june 30, 2008 1,533,330 39,898,526 90,000,000 -299,089,835
Risght issue @ 1.28 shares for each share h 196,666,670 - - -
(Loss for the year) -81,218,669
- - - 17,970,918
Disposal of revaluted assets - - - 980,249
Balance as on june 30, 2009 350,000,000 39,898,526 90,000,000 -361,357,337
Share capital
Rupees
Share Premium Ruppes
General reserve Ruppes
Accumulaed
loss Rupees
Transfer from surplus on revaluation of propert, Plant and equipment- net deffered taxation:-Incremental depreciation for the year
Transfer from surplus on revaluation of propert, Plant and equipment- net deffered taxation:-Incremental depreciation for the year
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CASH FLOW STATEMENTFOR THE YEAR ENDED JUNE 30, 2009
Table 12 Cash Flow Statement
2009Rupees
Cash flow from operating activites
Cash flow generated from operations 194,979,795Finance cost paid -146,850,645Taxes paid -1,846,380Payments against discounted provident fund -1,542,036Gratuity paid -4,803,896Dividend paid -225Long-term deposits (paid) -4,864,448
Net cash inflow/(outflow) from operating acitivities 18,455,165
Cash flow from investing acitivitiespurchase of property, plant and equipment -148,866,353Net (increase in long term loans -359,120Proceeds from disposal of property, plant and equipment 4,946,634
Net cash used in investing activites -144,278,839
Cash flow from financing acitivitiesProceeds from long term finances 163,500,000Repayment of long term finances -77,089,301Proceeds from loan from directors 1,450,000Repayment of loan to directors -1,760,000Proceeds from right issue 60,371,270Repayment of long term morabaha -7,174,998Proceeds from short term loans 13,100,000Repayment of short term loans -8,001,953Lease rentals paids -11,811,761
Net cash flow from financing activities 132,583,257
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Skills Acquired during the Internship Program
Purchase Department
I worked in Purchase Department for 4 weeks and skills acquired and
knowledge gained during this period is given below.
Purchase section is not physically responsible for purchase of goods; rather
it keeps record and maintains the books of purchase, sanction payments. It verifies
the purchases done with the help of documents like purchase order invoice and
MRN.
Documents generated in SAP software in purchase process are:
PR – Purchase Requisition
PO – Purchase Order
MRN – Material Receipt Note
Purchase Requisition
It is requested from any department of company to purchase goods from
that department, if the goods are not present in central store of the company.
Purchase requisition document contain the following information:
Description of goods
Bill number
Units of measurement
Quantity of goods
Stock in store (Signed by store dept.)
Purchase Order
It contains the following information:
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Description of goods
Bill number
Units of measurement
Quantity of goods
Rate
Total value
Discount
Purchase manager sign this document.
Material Receipt Note
When the company receives goods from the supplier, it issues the MRN that
contain the following information:
Goods types
Bill no
Quantity
P.O number
The store manager signs it.
Procedure of Purchase Department
Objective
Scope
Responsibility
Inaccuracies in purchase Department
Issuance of purchase requisition
Purchasing Information
Processing of Purchase requisition
Local Purchases
o Petty Cash
o Local Market Purchases
o Emergent Purchase
Imports
o Procedure for evaluation of Imported Item
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o Clearing and delivery
o Inspection of purchasing goods
Purchase Requisition is sent to head office
In head Office commercial department is responsible for local and foreign
purchases.
Commercial has further two departments
o For Local Purchases and
o For foreign Purchases
Commercial department has a list of suppliers with whom they have been
dealing before
They request to purchase and supplier sends the quotation
Purchase is performed after choosing the best alternative in terms of price,
quality and delivery of goods by making comparative statements
In foreign purchase the company has to send request to the foreign
suppliers
They send quotation
A document is prepared by commercial department which have different
fields in it. The purpose of this is to compare different alternatives and then
select the best available alternative.
The supplier send the perfoma invoice
Emco applies in bank to open L/C along with following documents
o I form
o Performa Invoice
o Purchase Order
o Insurance Cover Note
After L/C is opened goods are dispatched by the supplier with the following
documents
o Bill of Lading
o Commercial Invoice
o Packing List
o Certificate of Origin
o Technical Literature
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These documents are sent by the supplier to his bank and bank send to our
bank
When shipment is arrived at our port, our bank informs us to receives the
good and collect the documents.
Finally payment is made by the company as per prescribed terms of
payments.
Harmonized code is a specific code of a product.
Suppliers Evaluation:
Objective
Scope
Responsibilities
Procedure
o Past history
o Site and sample qualification
o Product inspection
o Logistics Economics
New supplier
Existing Supplier
Services supplier
Supplier Corrective Action
Re Evaluation
Reference
Cash & Bank Department
This Department deals mostly with banking sector. Mr. Khurram is
responsible for this section. Payment for more than RS.10000 has been paid
through cheque. This department is responsible for making payment to the
suppliers and daily bank transactions. Pay roll of the employees is also maintained
by this department.
Formulas on Excel help to remember the date of payments,
Mainly cash and bank performs the following main task
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Payments
Receipts
Outgoing payments
When EMCO limited buy raw material or any other Material, the bill is
received from the purchase section along with the purchase order and MRN
(Material Receive Note). If tax is written behind the invoice, challans and cheque
are typed. Along with this cheque for amount payable to the customer are also
typed and processed.
In case there are standing instructions by the customer to make payment in
the shape of a bank draft, pay order, traveler cheque or bank transfer, instructions
are given to the banks. All these documents are checked and verified by In charge
cash and bank section, which after initial screening sends them to different
authorities for 1st signature as per their limits. After these signatures, tax payments
are made by detaching challan and tax cheque and are deposited in banks. The
remaining items are sent for 2nd signatures to the top management.
Reimbursements
It includes various reimbursements to company staff and payments to
others. These include petty vouchers and cash vouchers.
Petty voucher
It includes the followings:
Medical bills
Telephone bills
Traveling expenses
Cash vouchers
Other expenses like car maintenance, entertainment and miscellaneous are
also approved, checked and vouchers are then prepared. All these vouchers are
then checked by the departmental head according to their respective limits.
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Display Centre
I have worked for two days on the display center at Ferozpur Road,
Lahore. Customer can visit and purchase the tiles from there.
About 20 employees worked out there. Different type of Tiles in
different condition is available there with different prices. For example: Tiles
of two color light color and dark color. Sales men use the Stock sheet to
communicate to the customer about future production. Stock is updated on
Daily basis. Staff is updated with factory stock and display center store
stock. Customer gives us the measurement of area where he wants to install
Tiles. For example Customer wants to install tiles on his bathroom
Length 8 sq. feet
Width 5 sq. feet
Total Area: 8*5 = 40
40/10.76 = 3.72 Sq. meter
Now we have the tiles in a packing of 1.5 meter
So Customer requirement is about 3.72 and we provide him 4.5 meter as
packing is not available in 3.72.We gave him 3 boxes.
Inventory Department
I spend my first two days in inventory department. EMCO has proper
system to maintain his inventory. There are eight store rooms available at Factory.
Mainly divided into two classes, Tiles Store and Insulator stores,
Tile store includes Clay store room , glazed material store room,
Miscellaneous item store room, Raw material store room , instrument store room
and Insulator also include clay store room ,Raw material store room etc.
If any thing added to the store room, a document is prepared i.e. Material
Receipt Note (send to the head office).
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Marketing Department
I worked in Marketing Department for 2 days and skills acquired and
knowledge gained during this period is given below.
EMCO has hundreds of dealers in all over Pakistan, Sales person contact to
these dealers to sale out there product, whenever stock is available to Factory
stock, Sales person contact with dealer and takes the order. Sales person made
Factory Deliver Document. Our managers at warehouse dispatch the goods at
dealers end. Factory delivery challan has been made by the managers at
warehouse in the system. System automatically generates the Bill for the dealer
and entry for sales is automatically done by the system. Customer can make
special request on the basis of order size. Honda has the requirement to have the
EMCO tiles of specific color at their franchises. At the end of the day Marketing
Manager collects all the data of sales that is performed at the same day and match
it with the inventory available, and if he founds any deficiency then he reports to
the head office. There may be the breakage of tiles during loading unloading,
Sales return by the customer and sample tiles issues. Store Manager helps the
marketing manager to find out the deficiency. There is special discount if you are
purchasing tiles for mosque. There are different classes of Tiles i.e. Platinum,
Standard, Economy.
In Platinum it is the finest quality of the tile without any minor defect this is
costly than standard and Economy. Standard tiles have some minor defect for
example, a little bit difference in size, color and there some minor scratches out
there. This class is less costly then platinum. Economy is less costly then standard;
it has some major defect like breakage of tiles from the corner, difference of color
of the same style tiles or prominent scratches.
A document is being generated by the marketing manager named Group
wise sale, Collection and receivable’s which incudes the whole day activities, All
dealer name are mentioned out there, Total sales in Square meter, Total sales
return from that particular dealer, Net sales, Collection, Discount, Freight, Free
sample/ break/.defective, Bank Charges, adjustments, outstanding amount from
that dealer, and Increase/decrease in receivable’s.
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Figure 9 Brand Associations
These are the desired associations which Emco Tiles want to create in
the mind of customers
• High quality products.
• Complete range of products offered (wall, floor tiles).
• Reliable Product.
• Durable Product.
• Waste range of colors.
• Waste range of designs.
• Stylish Product.
Sales Department:
Accounting for revenues and receivables will be carried out by the sales
accounts section with the following objectives:
Accurate reporting of revenues and receivables in the periodic financial
statements.
Monitoring of collections from customer.
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Accurate accounting and reporting of sales tax and withholding tax.
In order to achieve these objectives sales accounts section carry out the following
tasks.
Maintain and monitor accounting data in customer master files.
Ensure that invoices for all sales (internal, external, export) are accurately
generated on daily basis and posted to the appropriate heads of accounts.
Ensure that all incoming payments for the customer are matched to the
correct invoices and posted in the appropriate head of accounts.
Ensures timely generation and filing of sales tax invoices.
Credit note
The sales accounts section is responsible for issuing of the credit note to
customer. Credit note is always regenerated on the basis of an approved credit
note request. Credit note can be issued for any reasons however, following are
common reason for which credit note is issued:
Credit note – return of goods
Defected goods return by customer
Rate differential
Quantity shortly received by customer
Credit notes report is analyzed and reviewed by the in charge sales
accounts section on daily basis. Periodic analytical review is carried out to ensure
random check on validity and reliability of credit notes and related accounting
entries.
Debit note
The sales accounts section also issue of the debit note to customer. Debit
note is issued in the following cases:
Rate differential
Freight charges
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Recommendations
Well we found that Emco Tiles do not focus on aggressive advertisement
campaign and do selective advertisement so they should focus on mass
level of advertisement and invest more on advertisement.
Emco tiles prices are comparatively high than its competitors so people
some times switch to other competitors due to budget problem so they
should have to adjust their prices which are relatively equal to their
competitors.
As they claim that they offer vast range of colors and designs but in their
display center all the range of colors and designs are not available so they
have to display all the possible range of colors and designs and to over
come this problem they can also go for customization. As they achieve the
economy of scale and their production level is very much high than their
competitors and in the peak seasons they can easily fulfill the demand so
they don’t have any problem regarding their production so they should focus
on customization through which customers can select designs and colors up
to their own choice, this will create brand loyalty and retention of the
customers because no other competitor is offering customization facility to
customers.
As company divided whole Pakistan into different zones and facing the
problem of miss communication or lack of communication so company
should has to improve its communication system and launch the shared
information system which will connect them through all the zonal offices and
suppliers and distributors also so they can communicate with each other in
timely and efficient manners.
As government reduces taxes on exports of tiles in other countries and
company also exporting its tiles in middle east and European countries but
company should pay more attention towards exports and should find new
markets and new distributors and should go to those markets where is huge
potential customers and from where company can get more revenue so
company should has to focus on exports because company’s production
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capacity is higher than its competitors and company can also increase its
production capacity so that company can easily enter in new markets and
fulfill the demand of those markets.
Company expenses should be reduced its administrative expenses
Its should also reduce its selling expenses which have bad impacts on profit
Work should be equally distributed among employees
Some employees are over burdened their must be fair distribution of
responsibilities
Emco does not provide job security to the employees. Mostly are hired on
contractual basis. More people must be employed on permanent basis/
providing job security and satisfaction.
There is no separate department for the training of new employees. There
should be establishment of a separate department for the training of the
new employee and a competent teaching staff should be hired for their
training.
The management should develop in workers the operator ownership to
encourage them and make them responsible for their work.
The worker should be given sense of teamwork and the managers should
be trained to manage the team as a good leader.
New schemes should be introduced and maximum privileges should be
given to customer, so that to win money market.
It should also install new laser cut plant to compete its competitors
New marketing strategies should be developed to attract new customer
It should also increase
o Television Advertising
o Press Advertising
o Advertising on internet specially through social networks
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Conclusion
Internship at Emco has been a great experience for me. It has opened new
dimensions for me to learn new things about which I had no knowledge.
The organization is going through its worst periods for past few years and its
repute in the market is decreasing. Major reason behind is undue administrative
and selling expenses which must be cut down as much as possible. Is must invest
in more profitable businesses and should introduce new strategies to target new
customers. Although company is running into losses however by focusing on new
strategies company can again gain greater marker share. For this I have also given
some recommendations
So finally this internship program has helped me a lot in gaining practical
knowledge of job that will help me in academic as well as in practical life for future.
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Bibliography
Meigs and Meigs, Principles of Accounting (11 Ed.)
http://www.emcotiles.com/
http://www.scribd.com/
http://www.wikipedia.com/
Emco’s Policies and Procedures
EMCO Employees
www.google.com/pk
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