SUMMER INTERNSHIP PROJECT REPORT

On

United Grease and Lubricants Co. LLC.

Submitted in partial fulfilment of the requirements for the award of the

Degree of Bachelor of Commerce of Christ University

By

Masroor Beg

1410206

Under the guidance of

Mrs. Aruna P

DEPARTMENT OF COMMERCE

Christ University, Bengaluru

2016-2017

1

DECLARATION

I, Masroor Beg, do hereby declare that the Summer Internship Project has been undertaken by me as part

of my studies in the degree of Bachelor of Commerce. I have completed this study under the guidance of

Mrs Aruna P, Assistant Professor,Department of Commerce, Christ University, Bengaluru and Mr.

N.C Suresh, CFO, United Grease and Lubricants Co. LLC., Ajman, U.A.E.

I also declare that this work has not been submitted for the award of any degree, diploma, associateship or

fellowship or any other title in this University or any other University.

Place: Bengaluru (Name & Signature of the Candidate)

Date: MASROOR EBG

1410206

2

CERTIFICATE

This is to certify that the Summer Internship Project submitted by Masroor Beg,is a record of project

work done by him during the academic year 2015-16 under my guidance and supervision in partial

fulfilment of Bachelor of Commerce. This Summer Internship Project has not been submitted for the

award of any degree, diploma, associateship or fellowship or any other title in this University or any other

University.

Place: Bengaluru (Name & Signature of the Guide)

Date: Mrs Aruna P

3

ACKNOWLEDGEMENTS

4

I am indebted to many people who helped me accomplish this internship successfully.

First, I thank the Vice Chancellor Dr Fr Thomas C Matthew of Christ University for giving me the

opportunity to do my summer internship project.

I thank Dr. Tomy K Kallarakal , Associate Dean, Dr. Theresa Nithila Vincent , Head of the Department,

Dr. Karthigai Prakasam C, Coordinator BCom Programme, Department of Commerce for their kind

support.

I wish to take this opportunity to express my deep sense of gratitude to thank Mr. N.C Suresh for his

invaluable guidance throughout my project. I sincerely thank United Grease and Lubricants for providing

me with an opportunity to be a part of it.

I thank Mrs Aruna P, for her support and guidance during the course of my summer internship. I

remember her with much gratitude for her patience and motivation, but for which I could not have

submitted this work.

I thank my parents for their blessings and constant support, without which this internship would not have

seen the light of day.

MASROOR BEG

Register No: 1410206

TABLE OF CONTENTS

5

Sl.

No

Particulars Page No.

(from and

to)

1 Introduction 7-17

2 Functional areas of the organization 18-25

3 SWOT Analysis & Key Result Areas of the organization 26-30

4 Organizational Performance 31-35

5 Learning Experience and Conclusion 36-39

Bibliography 40

Photo Gallary 41-44

6

Chapter 1

INTRODUCTION

1.1 Company Profile : 7

United Grease & Lubricants Co. LLC with its brand name SCOPE was established in the year

2001. The plant has under gone a series of developments and expansion. The plant has the

capacity of 70,000 MT per annum for blending & filling of lubricants and 4000 MT & 1000 MT

per annum of Lithium based and calcium based greases respectively and is located in new

industrial area in Ajman – UAE.

United grease & lubricants has blossmed to a highly specialized, well integrated establishment

with a reputation for making and marketing quality products. The plant is certified for quality

management system Iso 9001-2000. United grease & lubricants blending excellence is thus

transformed into total reliability for all its customers.

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1.2 Mission :

Company’s focus on honesty, integrity and respect for people form the basis of the United

Grease & Lubricants Principles.

Company is convinced that contributing to sustainable development helps create business value

and reduce operational and financial risk, making us a more competitive and profitable company.

Company’s commitment to technology and innovation continues to be at the core of it’s strategy.

It believes in their technologies, and technical expertise be their telling factors in the growth of

business.

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1.3 Objectives :

UGL was established with the aim of responding to customers needs in an efficient, dynamic and

profitable way and guide esteemed customers with a comprehensive product range. Company is

committed to continuing program of product updating, upgrading to ensure SCOPE brand

products are manufactured with the most advanced formulations.

Company is fully committed to maintain highest quality in everything it does and you can be

assured that you are dealing with a company striving to achieve total customer satisfaction.

Company provides a range of products starting brake oil to marine lubricants and much more .

Company’s team of experts is always available to guide it’s customers.

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1.4 Health Safety and Security :

United Grease & Lubricants ensures and pursue the goal of no harm to people, playing a lead

role in promoting best practices in our plant and ensure HSSE matters are followed efficiently in

the industry to help develop energy resources products and services consistent with these aims

and protect the environment.

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1.5 Products :

SCOPE Brand :-

1) Gasoline Engine Oils

a. SCOPE Pegaso - SM/CF

b. SCOPE Pegaso - SL/CF

c. SCOPE Pegaso - SJ/CF

d. SCOPE METRIC - CI4/SL

e. SCOPE METRIC - CH4/SJ

f. SCOPE LUMIX - SM/CF

g. SCOPE LUMIX - SL/CF

h. SCOPE LUMIX - SJ/CF

2) Mineral Oils :

a. SCOPE PERFO 9000 - API SM

b. SCOPE PERFO 8000 - API SL/CF

c. SCOPE PERFO 7000 - API SJ/CF

d. SCOPE PERFO 6000 - API SG/CD

e. SCOPE PERFO 5000 - API SF/CD

f. SCOPE PERFO 5000 - API SF/CC

g. SCOPE PERFO 4000 - API SD/CC

h. SCOPE PERFO 3000 - API SC/CC

i. SCOPE PERFO 4T Four Stroke Engine Oil API SJ/CF

j. SCOPE PERFO 2T Two Stroke Engine Oil API TC

k. SCOPE PERFO Board Out Board Engine oil TCW-3

3) Diesel Engine Oils :

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a. SCOPE Denim 9050 Ultra Super Diesel Engine Oil – CJ4

b. SCOPE Denim 9000 SCOPE Denim 9000 Global Extra Super Diesel – API CI4

c. SCOPE Denim 2090 - API CH4/SJ

d. SCOPE Denim 2080 - API CG4/SJ

e. SCOPE Denim 2070 - API CF4/SJ

f. SCOPE Denim 2060 - API CF4/SG

g. SCOPE Denim 2050 - API CF/SF

h. SCOPE Denim 2050 - API CF/CF2/SF

i. SCOPE Denim 2040 - API CD/SF

j. SCOPE Denim 2030 - CD/SE

k. SCOPE Denim 2020 - API CC/SD

l. SCOPE Denim 2010 - API CC/SC

4) Automotive Gear Oils :

a. SCOPE EFFOL EP - GL5

b. SCOPE EFFOL - MP – GL4

c. SCOPE EFFOL LP - GL1

d. SCOPE IEP - INDUSTRIAL GEAR OIL

5) Transmission Fluids :

a. SCOPE MERCUR DEXRON III AUTOMATIC TRANSMISSION FLUID DEXRON III

b. SCOPE MERCUR D II AUTOMATIC TRANSMISSION FLUID DEXRON II

c. SCOPE TRAAC - TYPE ‘A’

d. SCOPE TRANSMISSION FLUID – TO

6) Industrial Lubricants :

a. SCOPE TEXTRON - AW HYDRAULIC OIL

b. SCOPE TEXTRON - AW HYDRAULIC OIL HV

c. SCOPE TEXTRON - R & O Turbine Oil ISO 32, 46, 68, 100

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d. SCOPE TEXTRON - General Purpose Oil

e. SCOPE TEXTRON - Circulating Oil

f. SCOPE TEXTRON RPM - Compressor Oil

7) Marine Engine Oils :

a. SCOPE CENTEX MARINE SYSTEM OIL 6 TBN & 9 TBN

b. SCOPE CENTEX MARINE ENGINE OIL 12 TBN & 15 TBN

c. SCOPE CENTEX Severe Duty Marine Engine Oil 320, 420, 520 (20 TBN)

d. SCOPE Severe Duty Marine Engine Oil

e. SCOPE CENTEX Severe Duty Cylinder Oil 570 & 590 (70 & 90 TBN)

8) Speciality Product :

a. SCOPE HIVOLT BS 148 TRANSFORMER OIL

b. SCOPE HT Heat Transfer Fluid

c. SCOPE Soluble Cutting Oil

d. SCOPE SUPER 2000 HEAVY DUTY BRAKE FLUID DOT 3

e. SCOPE SUPER 2000 HEAVY DUTY BRAKE FLUID DOT 4

f. SCOPE ANTI-FREEZE CONCENTRATE

g. SCOPE SUPER COOLANT

h. SCOPE SUPER FLUSH

9) Greases :

a. SCOPE AMPLE EP GREASE NLGI 2 & 3

b. SCOPE AMPLE MP NLGI 2 & 3

c. SCOPE HIFO LITHIUM MULTIFUNCTIONAL GREASE

d. SCOPE AMPLE GP NLGI 2 & 3

e. SCOPE PREMIUM LITHIUM COMPLEX GREASE

f. SCOPE PREMIUM LITHIUM COMPLEX GREASE WITH 3% MoS2

g. SCOPE PREMIUM LITHIUM COMPLEX GREASE

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h. SCOPE PREMIUM LITHIUM COMPLEX WITH 5% MOLY GREASE

Other Brands :-

1) DYNAM

2) DERBY

3) TEXAS

4) WAGER

5) EUROIL

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1.6 Competitors :

United Grease and Lubricants trades its prdoucts both in local and in international markets. As of

now, it supplies its products in African, AGCC and South Asian markets, which allows for stiff

competition with regional heavy weights in the industry. UGL’s 70% sales consists of exports

and 30% are local which allows for more exposure to international competition.

Here’s a list of Local and Internaltional competitors of UGL :-

Local :

Sharlu

Gulf Oil

Emirates Lube Oil

Arabian Lubricants

Petrotek Lubricants

EMA Lubricants Company Limited

Armor Lubricants

International :

Gulf Oil

Petromin

Shell

Castrol

Mobil

BP

Total

Chevron

16

Major Clients :

Luk Oil

Patronas

Servo

Sharlu

17

Chapter 2

Funtional areas of the company

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1) Top Management :

19

Top

Man

agem

ent

Sales and Marketing

Finance

Purchase

Production

Logistics

Top Management is headed by Mr. Redha Hasan (Chairman) and Mr. Liaquat Ali Rajput

(Managing Director). It is responsible for taking major capital decisions, policy decisions,

non-operating decisions, budgeting decisions and over-looking of company’s overall

performance and also performance of individual departments. A regular surprise

inspections are counducted by top management personally at various units of the

company to ensure if the strategies ,goals and objectives of the organization and being

implemented efficently and effectively.

2) Sales and Marketing :

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Sales Department is the main driver of operations in the company. It is when sales

department gets sales flowing for the compnay, then, rest of the departments come into

action.Sales depatment is soley resposible for dealing with customers, which invloves

taking orders and when order is dispatched,receiving of payment immediatly or upon

maturity of credit period. Upon receival of ‘Purchase Order’ or ‘LPO’ from customers,

sales coordinator at the department makes ‘Sales Order’ and sends it to Finance

department for entry, Purchase department for acquisition of raw materials and packaing

materials, and Production department for readying the production of products against

Sales Order.

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3) Finance :

Finance department maintains books of accounts like Sales book, Purchase book, Petty

cash book etc. Apart from maintaing books of accounts it also prepares and sends invoice

to customers, sends shipping documents to overseas customers, prepare cheques for

payments. Upon dispatch of goods to customer, a ‘Delivery order’ is prepared by

logistics department, which is then sent to Finance department for preparation of

‘Invoice’ , as the customer is liable for payment upon credit of goods (invoice is send to

customers depending upon the payments terms). Finance department allocates and

provides funds for payment of various expenses of the company, including petty

expenses which maybe incurred by employees, is retrived by employees from finance

department upon presentation of bill associated with the expense.

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4) Purchase :

Purchase Department is responsible for acquisition of raw materials, packaging materials

etc. required for carrying out and maintaining operating activities smoothly. Lack of raw

materials or any utensils for daily operation is notified to the purchase department by the

department in need by sending MPR (Material Purchase Requisition). Upon credit of

MPR by purchase department, it prepares a ‘Purchase Order’ or ‘LPO’ against the given

MPR and sends it to suppliers of needed materials. Along with MPR No. , S.O (Sales

Order) number is also mentioned in the Purchase Order for which materials are required.

However, payment for items bought is done independently by Finance department. Any

purchase of materials involving substatial amounts requires signatures of top

management, like purchase of Base oil which is aquired at large quantities from countries

like Saudi Arabia, Iran, Bahrain etc.

23

5) Production :

Production department is responsible for blending of additives and Base Oil for

production of various lubricants and greases.Production is departemnt is divided into two

sections, mainly Lubricants and Greases. Part of production department is the state-of-

the-art labortory which specifies the specifications of a particular product to the blending

unit of production department. Some company customers, however, send their own

specifications for their product, stating the amount of base oil, types of additives to be

added and under what conditions it has to be blended. Labortory also acts as a quality

control body, to make sure that products which are being dispatched satisfy the

specifications and standards. Production departemnt act and prepare for production, whn

they recieve ‘Sales Order’ from sales department stating type of product, quantity and

deadline until when product have to be ready for dispatch by Logistics department.

Production department maintains a set of storage tanks for different products ready for

24

filling, to speed up production process.

6) Logistics :

Logistics department in UGL deals with dispatch of goods from factory to customers or

distributors and also for recieval of raw materials and other packaing materials. Logistics

department load and unload goods and raw materials on and off the factory and keep an

account for the same. Logistics department prepares ‘Delivery Order’ when goods are

dispatched to customers, whch is then sent to Finance department for entry purpose and

for preparation of ‘Invoice’, since customer then onwards becomes liable for payment.

Arrangements related to means of transportation and whether in-hose or outsource, is

taken car by Logistics Department.

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Chapter 3 : SWOT Analysis

26

1) Strengths :

Ability to coordinate, cooperate and deliver in an effective manner.

Meet required standards of working conditions and working environment for

enchanced effiency at workplace.

Good cooperate culture and environment, which boost morale of employees.

Diversity among workforce and employees.

State-of-the-art offices and labortories and other infrastructure.

Good quality at reasonable price, due to low costs.

Political stability in the country.

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2) Weakness :

Inability to compete with top brands in the industry.

Inability to manage finances at lower oil prices, in contrast to top-notch companies in

the industry.

Maxed-out production capacity and estate for furthur expansion.

Slight inefficency among workers and utilisation of resources.

High overhead expenses.

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3) Opportunities :

Increase market share during periods of low oil prices, as finances of smaller producers

weaken.

Right oil price speculation based decisions could turn into company’s favour.

Diversifying production of products to jet fuel, milirary grade products etc. could widen

the scope of the market.

Venturing into untapped markets of Europe, North and South America.

29

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4) Threats :

Threat of sales grabs from smaller producers with lower price and lower quality.

Fall in prices of crude oil has equal effect on base oil, which in return shrinkens profits of

the firm.

Technological advancement in production process not readily available to company.

Threat from leak of secretive formulas and raw materials used for preparing SCOPE

products.

Threat from external environmet like government laws and rules, blockage of Hormuz

Strait hampering exports,

Threat of fire causing heavy loss in stocks and machinary.

Threat of imposition of taxes like VAT and Corporate tax due to low financial

performance of the company.

31

Chapter 4

Organizaional Performance

32

4.1 Finance department at United Grease and Lubricants

UGL’s Finance department and all other offices including the factory are based in New

Industrial Area, Ajman, United Arab Emirates. The main activities performed in the Finance department are:

o Prepartion of Invoice

o Payment for purchases, expenses, salaries and overheads.

o Sending of shipping, legal and other clearence documents to customers.

o Account for trasactions in the company.

o Preparation of cheques.

o Maintaince of books of accounts.

o Correspondence with customers with regard to logistics.

Finance department consists of four employess, three responsible for data entry and one

responsible for key financial decision and preparartion of financial statemnets and its

analysis.

Finance department is deeply involed in the day to day affairs and transactions of the

company.

33

4.2 Accounting procedures followed :

Accounting is done through the FOCUS module.

Cash based accounting is followed.

International collections are taken through LC (Letter of Credit) for matter of security fo

payment, but local sales are widely done through Bank transfers or cash .

34

For all customers on credit, interest free credit period is offered for a specific time period

ranging from 1-3 months, as per the terms and conditions.

All transactions in the company are recorded both on-computer (in FOCUS) and off-

computer (books of accounts).

NOTE : Studies are being conducted to shift accounting software from FOCUS to SAP, due to

its better analytics and ease of use.

4.3 Significant factors for success :

Company was formed at the right time and right place for such immense growth to occur

in a short period of time. Compnay was formed when U.A.E was entering into it’s boom

period and it’s when oil prices started to sky-rocket.

Punchuality in obeying the schedules and time frames, help it built trust among customers

to pursue and elevate business with UGL.

35

Political stability in the country meant there was little or no external influences or

hinderences in its path towrds its goals.

No taxes levied on the company meant it could utilise all its profits for scaling up its

expansion an paying of bonuses for better efficency among employees.

Providing right quality and meeting all standards at reasonable prices allowed for huge

sales.

Favourable corporate culture and woring enviroment helped company to minimize

absentism and enhance efficency and effectiveness of employees.

4.4 Financial highlights :

Note : Financial Statements were notrevealed upon request due to secrecy. Thus amounts stated

are mere estimates.

Data shown below is in monthly basis :

Sales = AED 62,000,000/- ( 1 AED = 18.43 INR )

36

International = AED 43,400,000/-

Local = AED 18,600,000/-

All Expenses = AED 49,600,000/-

Profit : AED 12,400,000/-

37

Chapter 5 : Conclusion

Future plans for growth :

Venturing into more sophisticated products requring advanced machinary and technical

knowledge and skills, like jet fuel oil, military grade oils etc.

Expanding storage capacity of main raw material – base oil, inside premises from now

72,000 MT to around 100,000 MT.

Venturing into untapped markets of Europe, Americas and Centeral Asia.

Erecting a refinary of it’s own to produce more diverse oil products at a higher range.

38

Sustainability :

Using environment friendly machines for production.

Spreading awareness among workers regarding plastic wastage.

Using eco-friendly methods of production.

Learning Outcome :

To be able to make entires for transactions in an organization.

Understanding production process of various lubricants and greases, from the acquisition

of raw materials, to packaging of finished goods.

File various accounting documents like Sales Order, Purchase Order etc.

Understand how global oil market fluctuationsinfluences company’s business decisions.

Prepare accounting documents like Invoice.

Understanding the refining process of company’s main raw material – Base oil.

Understanding procedures and formalities related to compliance with regards to

international trade and transactions conducted.

Understanding cycle of sales in production company.

Understanding the significance of corporate culture and corporate environment for a

healthy and efficent growth of an organization.

Acquiring deep knowledge and understanding in terms of usage and benefits of different

lubricants and greases in various fields and most importantly, the chemical composition

and specifications of different lubricants.

Work Schedule :

1 st week :

39

Introduction to basic funtions and procedures of Finance department.

Introduction to Sales books and it’s maintaince.

Breifing regarding lubricants industry and products.

Visit to factory’s labortory for understanding technical aspects of products and

manufacturing procedures.

2 nd week :

Tour around company factory to understand manufacturings processes from raw

materials handling to blending of base oil and additives to packaging of products.

Breifing regarding base oil’s uses, characteristics, types, chemical compositions.

Introduction to Purchase book.

Insight into company’s accounting procedures and policies.

Breifing regarding company’s pricing policies, adaptation to volatile oil market,

acquisition of raw materials, thrid-party manufacturing.

3 rd week :

Induction into company’s plastic factory. Understanding networking at manufacturing place.

Induction and training on ‘FOCUS’ software.

Preparation of Delivery orders against dispatch of goods by Logistics department.

Preparation of Invoice agaisnt deleivery orders.

Breifing on company’s strategy to sucessfully dodge from crisis from recent fall in oil

prices (2014-2016)

4 th week :

Breifing on operations pertaining to office and administration among various funtional

arms of the company.

Breifing on international trade procedures and transctions, and rules and regulations

associated with it.

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Correspondence with international customers with regard to shipping documents and

delivery of goods.

Procedures associated with acknowledgement of need of materials and its acquisition.

Breifing on costing of products.

BIBLIOGRAPHY :

http://www.unitedgrease.com/

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Photo Gallery

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