sharif khursheed fans internship report

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In The name of Allah

The most merciful and the most Beneficent

Who guide me and help me at every step and every moment to complete this report.

Report on Sharif Khursheed Industry

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Internship Report of

SHARIF KHURSHEED FANS

4, Khursheed Alam State Shekhupura Road Gujranwala

Submitted To

The Department of Business Administration

University of Gujrat

Master’s of Business Administration

Faculty of Management and Sciences

University of Gujrat, City Campus

Chairman:


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Name: ________________________

Signature: ________________________

Director:

Name: ________________________

Signature: ________________________

Supervisor:

Name: ________________________

Designation: ________________________

Signature: ________________________

Executive Summary:


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The report which is written by me includes 4 basic Parts. 1st Part describe the introduction of my

internship, 2nd Part explain purpose and function of S.K Fans (which is highlight in function and

operation of S.K Fans). 3rd Part defines the history and background of the industry. 4th part has

information about the success of the industry.

In the report I describe the PEST Analysis and SWOT Analysis. The industry grows day by day and

makes better position in the eye’s of the customers. S.K Fans play a vital role in development of

society and improve technology to provide better products and services to the customers.

Sharif Khursheed industry is one of the best market leader in Pakistan. This industry growing

with passage of time and in near future it become a very good image in market. Now that time

it includes in top 20 fan industries in Pakistan and near in future the Industry has been awarded

with ISO 9001-2000 Certification due to its better progress of quality.. Introduction denotes

the purpose of my internship and after it I describe the structure and products of the industry.

Acknowledgement:


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First of all am thanks to almighty Allah who gives me the great courage to complete this

internship report with efficiently and honestly.

Second am thankful to the manager and staff members of the S.K fans who favors me and guide

me at every stage and provide all the information which I need and valuable for me and

necessary for my report. The staff members of the S.K Fans are very competent and the

environment of this industry is very comfortable for employees and for staff members.

3rd I am particularly indebted to my parents and my family members for inspiring me to do this

work and for the providence of the resources due to all of them I reached at this position and

work upon this report.

Table of Contents

Title Page

Executive Summary


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Acknowledgement

Section No.01:

1.1 Introduction of report 1

1.2 Background of study 1

1.3 Purpose 1

1.4 Scope 2

1.5 Objective 2

1.6 Methodology 3

Primary Data

Secondary Data

1.7 Organization 3

1.8 Summary 4

Part- I

Section No.02:

2.1 Introduction of S.K Fans 5

2.2 Nature of the Organization 6

2.3 S.K Fans in Pakistan 6

2.4 Products of S.K Fans 6

2.5 Hierarchy of the Organization 9

2.6 Distributors of S.K Fans 10

Section No.03:

3.1 History of S.K Fans 11

3.2 Commitment 12

3.3 Become a Dealer 12


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3.4 Socially Responsible 12

3.5 Warranty 13

3.6 Mission Statement 14

3.7 Vision Statement 14

3.8 Directors 14

3.9 Hierarchy of S.K Fans 15

3.1.1 Departments 16

3.1.2 Current Staff 16

3.1.3 Work Load 16

3.1.4 Salary Structure 17

3.1.5 Responsibilities 17

3.1.6 Communication System 17

3.1.7 Hiring System 18

3.1.8 Future Planning 18

3.1.9 Summary 19

Analysis of S.K Fans

3.2.1 SWOT Analysis 19

3.2.2 PEST Analysis 21

Part- II

Section No.04:

5.1 My internship part in industry 23

5.2 Introduction of Branch 23


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5.3 Detail of Supervisor 24

5.4 Weekly Timetable 25

5.4.1 Sale and Sale Return 26

5.4.2 Purchase and Purchase Return 28

5.4.3 Payroll Calculation 30

5.4.4 Bank Reconciliation 32

5.4.5 Store Department 33

5.4.6 Production Department 33

5.4.7 Cash Process 34

5.4.8 Account Receivables 36

5.4.9 Account Payables 37

5.6 Conclusion 37

Section No.05:

6.1 Recommendations 39

6.2 References 39

6.3Appendix


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Section No.01

1.1: Introduction:

It is a necessary part of my MBA (Finance) to fulfill the requirements of the university to

complete the internship duration 6 weeks with an organization. The internship is for the purpose

of getting the practical knowledge and discipline of the industry.

This internship report is about the S.K Fans (Pvt) Ltd. It is established in 1987 before 25

years. S.K Fans start its proper working as a good industry before 10 years. At the start up it is

offer only spare parts of the fans and now make all the parts and all variety of fans. Now S.K

Fans expands its network in whole country.

1.2: Background of Study:

The basic aim of the internship report is the requirement of the MBA (Finance) degree that

led me to experience as a professional exposure to S.K Fans as an internee.

1.3: Purpose:

The main purpose of the internship is to collect all the relevant information about S.K Fans

that is necessary to complete my internship report. Information regarding observe, Analyze,

Differentiate, Compare with other competitors.

To work in a practical environment with an organization

To improve my communication skills

Gain practical knowledge

Learn, see and solve the problems

Deal with different peoples


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1.4: Scope:

As an internee in S.K Fans the main focus of my research was upon the basic process like Sale,

Purchase, Payroll, Bank Reconciliation, Cash and Credit, Account Receivables and Account

Payables etc and management of the industry. Some other different departments are also

covered in this report.

1.5: Objective:

The basic purpose of my internship is to fulfill the requirements of the University for getting

the degree of MBA (Finance). For this purpose each student is responsible to submit their reports

minimum 6 weeks duration of work in an industry under the supervision of any experiences

person authorized by the company or industry.

The secondary purpose of my internship is to know the basic terms and situations and gained

practical knowledge about these situations and applied your knowledge practically. As well as

examine the marketing tools of the organizations and identify its opportunities and problems

and also suggest corrective measures. As an internee in S.K fans I achieved the following

objectives during my internship and about organization.

To learn about how the manager and the owners of the organization used the

information for decision making at various levels

I want to develop my personal skills and communication in the practical situation

To understand responsibility and habit of doing work

To familiarize with business organization

To know about different departments of the organization and their functioning

To enable myself to understand the key terms of the business and how it carried out in

the organization

1.6: Methodology:


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The methodology referred to the collection methods of data and the tools used how to

evaluate the results of the required information. There are basically two methods of collecting

data Primary Data and Secondary Data. The most and important source of collecting the needed

information is personal observation while working with staff and discussion with them.

a) Primary Data:

It is a method of collecting information first hand by our personal skills like observations,

Interviews, Discussion Groups etc. It is the best method of collecting information from market or

by other peoples. The researchers used this method for gathering information for their research

and development program.

b) Secondary Data:

It is second hand method of collecting information for our purpose. It include journals,

Research papers, Articles, Books, Magazines, reports, Previous theories etc. First you collect the

information from existing researches and then find out from it for your own research. S.K Fans

used mostly secondary data to collect information for research and to improve the quality better

and fulfill the customer requirements.

1.7: Organization:

The S.K fans (PVT) LTD established in 1987 is recognized as the industry leader in Pakistan

through its brand S.K Fans. We manufacture every kind of fans using state of the best and art

technology provides to our valued customers with reliability, energy efficient and high

performance of the products. The S.K fans are the best in class of all the electronic fans available

in this industry. Our product lines consists of

S.K Ceiling Fans

S.K Pedestal Fans


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S.K Bracket Fans

S.K Exhaust Fans

S.K Plastic Fans

Our company is dedicated to ensure customers satisfaction and therefore all of the products

are manufactured with extreme care and diligence. Our team is encouraged to keep abreast of

constant developments in the technology field of each of our products lines, these developments

are then incorporated into our production process to guarantee the latest and finest products

for our old, new as well as for the best customers who are loyal with our firm.

1.8: Summary:

In this portion i included that the internship is another way to understand the business line

and is very helpful to know the market knowledge of the products and market trends. You can

know how to work with a team and how we can deal of our customers in best manners. It is our

beginning stage so that we learn as much as we can get from the industry. Internship program

is a good and best way to understand the best practical life and manners for all the students

during their study. At this stage we analyze the market situations. Although there were some

restrictions by the industry owners so that they cannot provide us the accurate figures of their

reports due to leakage of the information.

Part-I

Section No.02

2.1: Introduction:


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The foundation stone of the S.K Fans Company was laid in early 80s, by the dynamic

progressive and experienced personnel. Since its establishment, it is successfully manufacturing

technically sound, high quality Home Appliances and Electric Fans of all sorts. Company has

experience of more than 25 years in fan spare parts manufacturing.

We are the pioneers in using powder coating, Stoving paint and Deco paints technology in

Pakistan and all products are being powder coated hence there color neither chipped off nor

fades off for years.

The manufacturing unit is equipped with the machinery;

1) Computerized automatic coil winding machine made in Japan by Hitachi

2) High pressure dies casting made in Japan

3) Auto/Capstan lathe made in UK by Elliott, made in Germany by H.Ernault, Batignolles

4) CNC die cutting made in Japan Kwagochi

5) Drilling lathe made in UK by Medding and Kerry

6) Stamping and cutting press made in Germany by Schuler/made in USA by Chicago

7) Injection molding made in USA by Van Dorn

8) Powder coating plant made in USA by Lontech

9) CNC lathe made by Mazak in USA

The sales and marketing staff consist of well experienced, Dynamic energetic and result oriented

persons. Research and Development team is the backbone of the company creating and

innovating styles and designs to meet the upcoming demands of the market. Now our products

are acclaim recognition for the durability, quality and designs, not only in Pakistan but

worldwide.

Shareef Khursheed Industries must be awarded with ISO 9001-2000 Certification.

2.2: Nature of the Organization:

The S.K Fans industry is basically based upon partnership among four brothers. They are all

together run this industry with their mutual consent.


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2.3: S.K Fans in Pakistan:

S.K Fans playing a vital role in development of Pakistan and is making a pioneer role in

development of fans sector, which is the main production sector in Pakistan. As we all know that

the fans sector is major part of our exports so that it helps to earn major parts of foreign

exchange through exports. This industry provides its services from 1987 and now that time it is a

good market leader due to its quality and prices. The S.K Fans also played an important role in

financing the country’s growing trade, which has expanded through the years as diversification.

2.4: S.K Fans Products:

Basically S.K Fans produce all kind of variety of fan products in different colors and designs

but these are the best and popular products among all fans products for our customers and

have a good market value.

S.K Deluxe Series

S.K Fans Supreme

S.K Fans VIP

S.K Fans Classic multi

S.K Fans Executive

S.K Fans Pride

S.K Fans Victoria

S.K Fans Decors

S.K Fans Cygnus

S.K Fans Perfect

S.K Fans Antique

S.K Fans Marvell

S.K Fans Serene

S.K Fans Grace

S.K Fans Magnum

S.K Fans Caroma


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S.K Fans Sareen:

S.K Fans Magnum:

S.K Fans Caroma:


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S.K Fans Grace:

Features of Products:

Aesthetic Design

Energy Efficient

Long Lasting Heavy Duty Motor

Noiseless

2.5: Hierarchy of S.K Fans:


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2.6: Distributors of S.K Fans:


CEOM Ishfaq

DirectorM Saeed

DirectorM Yousaf

ManagerFaisal But

Assistant Manager

M Ejaz

Account Officer PayrollM Tahir

Account officer

PurchaseM Amir

Account Officer Sale

M Kashif

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The distributors of S.K Fans are available in these cities.

Gujranwala (Head Office)

Lahore

Sialkot

Shekhupura

Kasoor

Mirpur

Karachi

Islamabad

Peshawar

Rawalpindi

Sargodha

These are all very good distributors of the S.K Fans and take a good part in the success of the S.K

Fans. Due to these distributors this industry grows fastly and increases its customers day by day.

Section No.033.1: History:


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The history of the S.K Fans starts with a simple beginning in 1987, our founder Sharif

Khursheed starts manufacturing spare ports of fans in Gujranwala. With the passage of time the

company grows day by day and one day it is known by the name of SHARIF KHURSHEED

Industry abbreviated as S.K Fans, which is quickly known as a high quality and uncompromising

performance. The products of S.K Fans are selling in the market due to care if its quality that is

promised by our brand name. In 2002 the company started to offer lifetime Guarantee on its

complete products.

This was the first time that any manufacturer in Pakistan made such a claim on its products

by the Guidance and Grace of Almighty Allah. S.K Fans were quickly becoming the top choice of

the fans products for customers. Now that time with 25 years of satisfied customers S.K Fans is

the leading brand in the fan industry.

3.2: Commitment:

The basic aim of the S.K Fans is to achieve the highest satisfaction of the customers. We are

dedicated to provide you with the best in class solutions for all our product categories and the


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peace of customers mind when dealing with any or S.K branded products. Our technical

expertise has led the industry standards in the manufacturing setting the bar higher each year.

S.K Fans ensure their commitments by:

“Our motors are designed for the maximum performance and consume minimum energy”

“The motors save the energy 34% monthly”

3.3: Become a Dealer:

Over 25 years with satisfied customers S.K Fans (PVT) LTD is the leading fan manufacturer in

Pakistan and only this one company offer “Lifetime Guarantee”.

Be a part of our family and offer your customers and get after sale services.

3.4: Socially Responsible:

At the S.K Fans we consider the corporate responsibility to be an integral part of all our business

functions from the product design to sales, our employees are encouraged to be Ethical, Fair and

Honest


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. We are dedicated to providing energy efficient products,

which are helpful and save the life of our country’s people. Our good and national network of

dealers, distributors and customers around our nation and the world gives is a unique

prospective. The S.K Fans owners believe upon happiness over profits and such provide a safe,

healthy and ethical work environment where all employees are given a chance to grow and are

committed to the honest, fair and transparent practices.

3.5: Warranty:

S.K Fans

FANS-LIFE TIME GUARANTEE

“Life time means 18 years from the date of purchase of S.K Fans”

Guarantee is valid only for S.K Fans purchasers after 01-06-2002with bearing

identification code

The guarantee of products is valid if only when the fan is stop working due to burning

out of motor, in other case only the motor will be replaced

If the fans has stopped working due to any other of the reasons included but not limited

or bush failure, then fan is to be repaired by our employees or service centre, Free of

charge for the first time after it the repair charges charged by customers

Guarantee does not cover normal wear and tear

Guarantee does not cover any fault, claim or damage resulting from any accident,

attempting repair mishandling, negligence on the part of the customers


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Life time Guarantee valid of the customers purchased the fan by the authorized dealer of

the S.K Fans.The claim shall be accepted if the customers have the original guarantee

card or purchase receipts given by the authorized dealer of the S.K fans

3.6: Mission Statement:

The Mission of the S.K Fans is to

“Produce High Quality Products that Satisfy our Customers needs”

3.7: Vision Statement:

We believe that our products are very unique that has been developed by the S.K Fans and we

think that no other industry or country manufactures the ceiling and pedestal fans like us. We

foresee that the products of the S.K fans dominate the whole international market, because the

S.K Fans industry gives the facilities to our customers that all market dealers and distributors

wants that are After Sale Services, Spare parts availability in the market or from the distributors.

3.8: Directors:

There are basically three directors but on the official website of the S.K Fans only two

directors are mentioned named mentioned as under.

Muhammad Yousaf

Muhammad Saeed

Muhammad Younus

The chief executive officer of the industry is

Muhammad Ishfaq

The top management of the S.K Fans industry is all brothers among them. As well as the

sons of all the directors and chief executive officer work under the top management.


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3.9: Hierarchy of S.K Fans:

3.1.1: Departments:


Chief Executive Officer

Muhammad Ishfaq

Directors

M Yousaf

Directors

M Saeed

Directors

M Younus

Manager

Faisal But

Assistant Manager Ejaz

Account officer Purchase M

Amir

Account Officer Sale M Kashif

Store Manager Usman

Account officer Payroll M

Tahir

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Store Department

Sale Department

Purchase Department

Winding Department

Wiring Department

Assembly Department

Packing Department

3.1.2: Current Staff:

The no of employees working in the S.K Fans Industry are approximately 200 persons. These

Employees include all Department employees including account staff and other workers. The

minimum salary of the employee in this industry is 10000 Rs. The current staffs of the S.K Fans

are one Manager, 2 Assistants, 3 Account officers, 1 Store manager, 1 Production manager and

remaining are all employees.

3.1.3: Work Load:

In the S.K Fans workload means that the in time to industry and out time of the employees

from industry. In other words we can say that how many hours the labor worked in this industry

every day. Here we discuss only Sharif Khursheed Industry of Pakistan not other industries. The

working hour has much importance for the industry because if the working hours are fair mean

less like 8 to 10 hours it is very suitable for employees, Because the employees can perform their

work in these working hours easily and effectively. The time Table of the S.K Fans is from 8 Am

to 5 Pm.

If the employees want to work more the overtime facility is available for the employees. The

employees of the S.K Fans can work more than 9 hours as they want. The employees work extra

in the industries due to low income and extra expenses due to inflation.


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3.1.4: Salary Structure:

Designation Salary Working Hour

Manager 55000 9-5 Pm

Assistant Manager 20000 8-5 Pm

Account Officers 15000 8-5 Pm

Store Manager 15000 8-5 Pm

Labor 10000-12000 8-5 Pm

3.1.5: Responsibilities:

The responsibilities of the management and the manager are to handle all the business

affairs and deal the other business matters. The manager should be responsible for internal and

external control and if there is a problem the manager should be responsible for it

3.1.6: Communication System:

The communication system of the S.K Fans is very good and communicative. It flows from top

management to lower management. In some organizations it flows from lower to top

management. Both flows are better but both have some disadvantage. If it is from top to lower

level then the grievances of the employees are not known by the top management then

problems arises. Sometimes the lower level of the employees is gives very good suggestions then

the management team. If there is a problem arise first top management decide if they do not

solve it then they involve the lower level of employees to take better decisions.

3.1.7: Hiring System:

There are two ways if selecting the candidates in the S.K Fans. First they receive the

employees C.V and Check the qualification and if they consider that he is eligible to this post

then the management calls him and conducts an interview. If he is selected then they discuss


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the salary if both are agree then he can join the industry. The other way is that the industry

needs an employee immediately then the management takes him without any interview based

upon his experience and qualification.

3.1.8: Future Planning:

S.K Fans has a very strong and good future plan. S.K Fans expands its business to

manufacture the following products.

S.K Fans Air Conditioned

S.K Fans Washing Machine

S. K Fans Micro Wave Oven

S.K Fans Water Heater. As Well as the S.K Fans introduce a new design of fan into the

market which is as under

This fan has the maximum power, latest design, saves energy, lifetime guarantee and less

price than its competitors. It has a strong brand image due to after launch this product in the

market it attracts more customers and earn more revenue than others because the

management show only design and the customers give orders to them. According to this

forecasting it has a great strength for the S.K Fans.


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3.1.9: Summary:

During my internship in the S.K Fans of Pakistan I think that it is very best and reliable than

the competitors exist in the market. I feel very comfortable to work here because it staffs is very

good, communicative and frankly with its employees. I shall work here with the supportive

environment. The profit margin of the S, K Fans is competitively low than its competitors but its

sale is more than others in Pakistan. S.K Fans build goodwill in the market and growing day by

day.

3.2.1: Analysis of S.K Fans:1. SWOT Analysis

In this chapter I make the internal analysis of the S.K Fans which depend upon the

following attributes. This analysis shows the internal position as well as external position

of the industry.

a. Strength: Attributes of the organization that shows the core competencies and

strength of the organization

Staff members are very responsible

Strong Credit Policies and Credit facilities

S.K Fans is ISO Certified

Provide After Sale Services

Lifetime Warranty and Guarantee

b. Weakness: This is the week point of the organization that is very harmful to

achieving its objects

No strong future policies

Management not up to date

Less Market Survey

Lack of Sub offices

Award and promotion policies gives to employees are not implemented


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No Job rotation

No research and development

c. Opportunities: these are the opportunities if the company take it then it has a

very good strength in the market

Acquire the state technology that reduce its cost

Provide incentives to employees

Gives advance salary to employees

Corporate planning and learning

Make advertisement at national and international level

d. Threats: It shows our competitors due to them we can fail to sell our products

Prices are increases day by day than it competitors

No imports only exports

Substitute products

High Competition

No action on complaints

3.2.2: PEST Analysis:

This analysis shows the Political, Economical, Social and Technological factors of the

Organizations. It is very necessary for every organization. If there is any kind of change in these

factors then it can create a problem for the organization and has a very bad effect upon the

business profit and sale.

a. Political:It is very necessary to the organization that before beginning the market survey

or process it must see the political position of the country whether it is favorable for our

business or not.

Associations, Unions, Parties etc

High Taxation on business

Political interference in the business matters

Hurdles by the government to expand our business


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Quota of import or sale of products

b. Economical:

It is the responsibility of the organization to see the economy and trends of the market. If

the country’s economy is strong then it is favorable for our business

Low public savings due to inflation

Low employment facilities

More bad debts

High operating cost

Minimum wages paid

C.Social:

Every organization that starts its business in any country it is its responsibility to care the

public and be socially responsible. The organization should start its business outside the

living area and follow the rules, laws and rights of the public.

Follow the country’s culture

Workforce Diversity

Follow the traditions and customs

Morally be social

Provide clean environment

Provide employment

c. Technology:

It has a good as well as bad impact on the business image. If the industry has latest and

new technology acquire then it has a good market image and can increase its sale. If the

firm has no latest and innovative technology then it may be lost and failure in the

market.

No latest technology


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No I.T Training and Development

Poor Computerized system

Without technology nobody is perfect in the market. It means that if the

manufacturer has no latest and new technology then he fails to sell his products to

customers because customers demand only quality and innovation.

Part II

Section No.045.1: My Internship Part:

The Industry where I have been worked has two setups.

SHARIF INDUSTRY

S.K FANS

The setup in which I have been worked is S.K Fans. In it the Fans are manufactured and sell to

national and international level. My role of work in this industry is as an Account Officer. I learn

practically how to manage accounts and dealings with customers regarding balance and

returns. The role of my job is to record Sale, Purchase and its returns, Payroll, Bank

Reconciliation Statement, Cash Process, Account Receivable and Payable, Store and Production

Department as well as learn how to make the manual ledger which is very different as teach us

in universities and colleges. This is the most complex and very hard work in the organization to

keep manual ledger and maintain balances equal. It is the most important work in every

organization and necessary for every organization because in case of problem in software and

due to load shedding problem there must be a hurdle in your work but if you maintain manual

account it is very useful and give help to you. You may lost the Soft data but manual always in

your hand.

5.2: Introduction of Main Branch:


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The S.K Fans is under the responsibility of last two brothers M Saeed and M Younus. But we

discuss here the main branch which is under the M Yousaf and M Ishfaq

Name Designations

Muhammad Ishfaq Chief Executive Officer

Muhammad Yousaf Director

Muhammad Saeed Director

Muhammad Younus Director

Faisal Butt Manager

Muhammad Ejaz Assistant Manager

Muhammad Rashid Assistant Manager

Muhammad Tahir Account Officer

Muhammad Kashif Account Officer

Muhammad Amir Account Officer

Muhammad Waris Store Manager

Muhammad Umar Production Manager

5.3: Detail of Supervisor:


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I have been worked under the supervision of these Account Officers and the Assistant

mentioned name as under.

M Ejaz ( Assistant Manager prepare Manual Ledger )

M Tahir ( Account Officer of Payroll and Bank Reconciliation Statement )

M Amir ( Account Officer Purchase )

M Kashif ( Account Officer Sale )

These are four very competitive and reliable and hardworking men. They are all work with a

friendly environment and with comfort. They solve the problems arise in the industry with their

mutual consent and with patience. All the staff members have minimum 5 years experiences of

working in a dynamic organization and can work in every situation and all can handle the every

situation easily. If any problem arises once they consult with their manager and work under his

instructions.

5.4: Weekly Time Table:

The time table of my work in this industry is mentioned as given under week by week.

The descriptions of these departments in which I have been worked before two months ago

are as given under with the details and their explanations one by one.

First Week


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5.4.1: Sale Order Process:In the first week at the start up I observe the work only and learn how to maintain practical

record keeping under the supervision of the account officer relating to sale named is M Kashif.

Here I observe three days and next three days record kept by me practically on the computer by

the supervisor. In this process there are two ways of working.

1) Firstly check invoices of sale order which is received by the customers and by our

distributors or retailers whether the order is placed by them or not

2) If the invoice is correct then check the goods from the store Department that the goods

are in store is according to the order specification and quality

3) If the orders match then set terms and conditions and sent a copy of the order to

customer, one to store room and one copy to billing department and if the goods are not

available in the store then sent order to production department

There are two types of billing in the S.K Fans that are

Post Billing

It include that the company receive the bill of the products after deliver the goods and

decide the charges of the freight.

Pre Billing

It include that the company receive the amount of the goods before the delivery of goods

to the customers. This offer is only for customers not distributors or retailers.

4) After receive the acknowledgement of the order the store manager provide the goods to

the sale department along with invoices

5) Sale Department prepare a delivery Chillan to sent the goods to the customers according

to the specifications

6) After make the delivery Chillan the goods sent by a goods transport company to

customers

7) If the goods are in credit basis then one copy of its invoice sent to credit department and

adds it in ledger account


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8) Mostly the transactions of the S.K Fans are on credit basis the days of the credit less than

one month

Sale Return:Basically to types of sale return in the S.K Fans that are.

By Value Addition

In it the company return the goods in this situation that it receive the old goods by

the distributor and send them new models of the products according to their

specification

By Account

In this type of sale the industry take amount of the goods return to the company and

take back money which is paid by them before some time. But we give some amount

to the distributors and remaining some goods take by them

In this process the sale department check the invoices of the sale order and check that

whether the goods sent by the industry are the same goods return by the customers if

correct then check the specifications and quality and sent the goods to store rooms for

repair and maintenance. The sale returns goods receive by the customer’s are record on zero

amounts base. The repair charges are not charge to customers first time after it the repair

charges separately charged by the customers.

Sale Order Process

Customer Order


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Sale Order Department

Prepare Invoices

Customer Acknowledgement Store Room

Billing

Check Goods

Sale Department Prepare Delivery Challan

Goods Sent to Customers

Second Week


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5.4.2: Purchase and Purchase Return: In this week I have been worked under the supervision of the Muhammad Amir account

officer of purchase and purchase return. Mr. Amir trained me first relating to purchase in 2 days

and work practical by me next 2 days. The remaining 3 days understand the goods sent to

production by the store. It is due to keep an eye on the stock whether available or not. And give

order to the supplier before a few days.

Purchase order process begins with the demand of the customers that are available in the

market that purchase our products. First estimates that how much products are sold by the

industry per month then according to the demand of the customers sent order to the suppliers.

First manager check the different suppliers available in the market and check the quality and

rates of them. If the rates and quality matches with the suppliers then we make a deal with

them. The mode of payment decide by the party at the time if start the dealings.

1) First the company make an order list according the customer demand

2) When the supplier send the goods to the company they first check the order list whether

we delivered the order or not, if confirmed then check the specification of the goods

according to the order

3) If the goods are matched with the order list then goods sent to the sent to the store

room and after it is on bulk purchase then sent after to the store room

4) Before the goods sent to the store or god own the store keeper check the list of the order

like inward gate pas which is prepared by the industry on the spot when he received the

goods by the supplier

5) After verification of the inward gate pass the store keeper sent a copy of it to the

manager and one to the account department for the maintenance of the record

6) Inward gate pass consists of the name of the vendor, specification, purchase order

reference

7) When the record kept by the account department they keep the invoice of the goods

receive in his file to avoid any dispute in future

8) The S.K Fans purchase the raw material mostly on the basis of credit not on cash


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9) The credit days of the purchase deals with each party before chosen the supplier at the

startup of the deal

10) The credit days of the S.K Fans are less than 30 days because due to fluctuation in

process day by day

Purchase Order Processing

Store Room Requisition

Purchase Department

Vendors General Ledger

Purchase Department

Store Manager Prepare (IGP)

Vouchers Check

Keep Record

Third Week


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5.4.3: Payroll Calculation:

In this week I enter the working hour of the employees and daily attendance of the

employees which is record on a register by the gate keeper. Then enter the production of the

employees what they produce and how many with department wise.

The S.K Fans maintain the process of the payroll on the computerized system for the time

saving and easily traceable records. The salary of the employees made on three bases

First note the in and out time of the employees when they enter the industry. Because the pay of

the employees make on the daily bases which is depend on the working hour of the employees.

As more they work the salary of them increase more and more.

The second is that the leave days of the employees in a month. The S.K Fans deduct the

employee’s salary when any of them is on leave.

Third check the production of the month as they work more they make much money for the

whole month. The S.K Fans give a target to the employees that don’t make the production below

this target otherwise the salary is deduct by the industry.

The salary system of the S.K Fans is computerized. All the employees are enrolled in the system

by the department wide because some employees are working more than one department so

due to it each employee is enrolled in department wise. The computer system calculate all the

employees salary’s automatically on the basis of their production record in the system by the

account department of the industry. The salary paid to permanent employees on monthly basis

but who are on contract basis they are paid twice in a month. Some employee’s salary is fixed

and some employee’s salary depends on the production.

All the salary paid on the cash basis by the industry and the delivery of the salary is the

responsibility of the account department of the industry. After the calculation of the salary the

account officer check the production of the employees himself and prepared a separate sheet on

the Microsoft excel and mentioned it the complete detail of their work. After verifying the


39

computer record they make salary into the envelope packets consists of their names and

amount of the salary.

Payroll Process

Account Department

Time Records (Daily Basis)

Payroll Calculate (Production Basis)

Approval by Manager

Cash Paid

Record in General Ledger

5.4.4: Bank Reconciliation Statement:


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The S.K Fans prepare their bank reconciliation statement with the bank on the monthly

basis with the account department on the behalf of the manager. Because all the check issued

or receipt by the industry are kept by the account department and this department maintain a

record on these checks. When any one check of them is returned or dishonored the account

department informs to the manager and record it on to the computer for the reconciliations.

The account department records all the checks record in computer on date wise and after any

trouble they can easily match with date. The assistant of the manager also keep record all the

transaction manually on the behalf of the manager because sometimes sue to load shedding

they cannot show the accounts to the customers or suppliers so that due to this reason they

maintain manual record. The one more benefit of the manual record is that the computerized

record destroyed by the incorruption of the software they can easily maintain record again.

Sometimes due to error in system the computer give prints with error in amounts so they can

match with the manual accounts. The statement of the bank is reconciled by the owner’s son or

by the manager himself. They take all the checks that are received or sent by the industry and

go to bank. In the bank they match their account with each other and both check their balances

on the spot if there is an mistake due to dishonor of check or un-presented checks they can clear

here otherwise the bank is not responsible for it.

Fourth Week


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5.4.5: Store Department: In the Store the work is performed by me is that to check the goods whether it is

according to the description or specification of the order or not. One more and important thing

is that first of all don’t forget to check the purchase order or sale order write by the company. It

verifies that the order is sent by the exact industry or not. Because to check that whether

somebody do not make fraud with us on the behalf of the customers or suppliers. After the

conformation of the inward gate pass unload the goods in store and if extra goods are in store

then sent to the god own.

5.4.6: Production Department: In this department I have been worked as a supervisor of the production department on

the behalf of the manager. The responsibility of the work relating to me is to see the employees

whether they work or not and check the quality of the goods whether they include the accurate

and exact material or not. I sent all the produced goods to semi finished goods department

where the employees polish the products and record on a register manually. As well as record

the raw material which is sent by the store keeper to us? I checked the goods first whether it is

our requirement or not if it is according to the order list sent to the store by me then we used it

in the production.

Fifth Week


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5.4.7: Cash Process:There are two types of the cash processing in the S.K Fans that are defined as under.

1).Cash Receipts:

There are three types of cash receipts in this industry given as under.

Physical Party Receive Cash:

In these steps the people that deliver goods to the industry receive the cash himself

by the manager or by the account officer or by the assistant manager on the behalf

of the owner. When the peoples receive the cash they take a receipts by the industry

and record a copy of it to account department and also record in general ledger.

Receive Cheques:

First of all the industry receive the cheques by the company or by the customers and

then sent it to the bank for en-cashed of it present in the bank then record It in the

computer if not then sent back to the company or customers.

Directly Deposited By The Customers:

In this option the customers directly deposited the amount of the industries owner

account and make a call to them that I have been deposited this amount into your

account kindly inform me after the receipts of the amount. We can say that this is an

online process which is used at national or international level when the both parties

are at more distances, because both the parties cannot receive the cheques.

2).Cash Payments:

In the S.K fans the date are mentioned in the computer at which date the cash/cheque sent

to the party. If the party come to take cash before the date then industry give cash/cheque to

the company and give a receipts to them and take a copy of it himself for the record keeping in

computer and manual. If a cheque is sent through mail then one copy of it sent to mail room

and one copy of it sent to bank that if the creditors come to take for payment the bank give the

payment to that person. There are three types of payment mode.

Physical Party Receive Cash:


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In these steps the people that deliver goods to the industry paid the cash them self by

the manager or by the account officer or by the assistant manager on the behalf of

the owner. When the peoples receive the cash they take a receipts by the industry

and record a copy of it to account department and also record in general ledger.

Payment through Cheques:

First of all the industry receive the cheques by the company or by the customers and

then sent it to the bank for en-cashed of it present in the bank then record It in the

computer if not then sent back to the company or customers.

Directly Deposited By The Customers:

In this option the customers directly deposited the amount of the industries owner

account and make a call to them that I have been deposited this amount into your

account kindly inform me after the receipts of the amount. We can say that this is an

online process which is used at national or international level when the both parties

are at more distances, because both the parties cannot receive the cheques.

Sixth Week

5.4.8: Account Receivable: There are three type cases in account receivables used in the S.K Fans that are given as

under.


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Cash Payment:

In this these cases customer makes payment direct to the receipt department of the

industry and cash receipt department make a report or invoice and send a copy of it

to the account receivable department, General Ledger and internal control for

verification.

Goods Return:

In such a case like sale return customers return goods to the receiving department

and this department send these goods invoice to the credit department for the

verification of goods and after the confirmation of goods these are sent to store

room or god own after it the account department prepare a record of it and send a

copy to account receivable department.

Bad Debts:

In the S.K fans if the customers do not make payments on the due date then they

wrote a letter to him for requesting to make payment immediately, if the customers

do not make payment after receiving the letter then we record it as bad debts and

close the next deal with that party, and inform the manager and owner regarding

this party.

5.4.9: Account Payable: In this Industry first the entire department makes and collects all the vouchers and sends

a copy of them to the cash department and General ledger department. The cash department

makes the payments to all the customers depend on cash basis at the end of the day the cash

department makes a statement of the whole day transactions and activities and send it to the

General Ledger Department.

Some of the customers demand through cheques then all the payment make through

cheques. It records in separate account of the department. After the end of the month the bank


45

send a bank statement to the industry to match their balances and if there is any differences

then correct with the bank.

5.5: Conclusion:

After the completion of my internship in the S.K Fans Gujranwala and after the analysis of

this industry I reached on this point of view according to my thinking based upon the experience

which I got from this organization after done my work. The duration of my work is 6 weeks but I

personally work here two months. The S.K Fans make much progress and attract more

customers with the passage of time sue to its technology and life time warranty that other

organizations are not given to its customers. It is due to because the parts of the fans are made

by the sharif khursheed industry under the supervision of the owner’s and the manager. After

the SWOT analysis of the S.K Fans I think that they change their policies and management

system immediately as can ad possible. The management of the S.K Fans is centralized and

nobody listen the problems of the employees so that they have many grievances in his mind and

have many questions that they cannot ask by the management due to low interference of the

employees in the management. They must need to change the system into decentralized and

morally be social so that the employees loyalty increase any built a trust upon them.

A Chinese Proverb say’s that

Never leave the old employee due to any reason because he work with you when you are

nothing and now you are something and you leave that employee due to low pay and some

other reasons

The old employees are loyal with you but new employee cannot be loyal because they want

money only, they cannot compensate with you at any situation or at any cost. The management

of the S.K Fans leaves the employee due to small mistake and if they demand to increase the pay

they stuck of the employee from the organization. The future planning of the S.K Fans is not

strong because they start more than one project at the same time so that this is not a right

planning of the industry. The pay scale of this industry is comparatively very low than its


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competitors. The knowledge which we learn in the colleges and universities is very different as

compare to practical. The accounting and tools that we read in the books and teachers tell us

are not involved in the practical life. The process of sale, purchase and other departments are

very different and now I got both the knowledge with the help of internship program. The

software which is used by the Sharif Khursheed industry is very easy and reliable and faster than

other industries. The cost of the software is comparatively low. The staff of the Sharif Khursheed

industry is very friendly and competent as well as have more experience and knowledge of

practical working within an organization. They can handle and solve any kind of problem arise in

the work. Some problems that arise suddenly in the organizations that have not been seen by

them they can consult with the manager. As you know that nobody is perfect in the world and

have no complete knowledge in every field of practical life. Every person gain and gain at every

situation and at any stage of life because there is the end of life but no end of work and

knowledge.

6.1: Recommendations:

According to my point of view these are some suggestions that are given as under.

S.K Fans change the management system from Centralized to Decentralized Increase the salary of the employees and give incentives to them Use new technology to reduce cost and improve quality Don’t start more than one project at once time Listen the grievances of the employees and solve their problems Make a complaint box and make an action committee to solve the problems Make better future planning Create a Research and Development Department Learn from the problems arises in the organization Socially is not good and morally it is very bad

6.2: References:Following are the references that help to me in completion of my internship report.


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WWW.skfans.com.pk WWW.yahoo.com.pk WWW.google.com.pk Books and articles Brochures and catalogue Manager Supervisors and in charge of industry Interviews


http://WWW.google.com.pk/

http://WWW.yahoo.com.pk/

http://WWW.skfans.com.pk/

sharif khursheed fans internship report

Documents

introduction of s

products of s

hierarchy of s

function of s

history of s

distributors of s

operation of s

sharif khursheed industry