GFC fans (2)

In the name of Allah the most beneficent the most merciful
INTERNSHIP REPORT
General Fan Company (PVT) Limited Pakistan
Submitted by:
Muhammad Sarfaraz
Master in Business Administration
(Finance)
Registration no: 11-US-119-12
Rawalpindi College of Business Administration Rawalpindi
Session: 2012-2015
University Of Sargodha

Scanned Copy of Internship Letter

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Dedicated to my beloved Parents and Siblings

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ACKNOWLEDGEMENTS
First of all my humble thanks toALLAH (Subhanahuwata’ala) for all of His
blessings.He enlightened me and gave me strength to accomplish my objectives
of life.All the respect forHoly Prophet HAZART MUHAMMAD (Peace Be
U0pon Him) who lit the whole world with knowledge when all the humanity
wasignorant. I am grateful to my Parentsfor giving me courage in my work. I
can never return them what they have done for me but I will always try to live
up to their expectations. Deep gratitude for my teachers who guided me well in
my studies and helped me preparing my report. Special thanks to GFC Staff for
giving me opportunity to work and to explore my knowledge. I am thankful to
my colleagues whose support and help made me complete my work.

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EXECUTIVE SUMMARY
This report is about my internship program in General Fan Company (PVT) ltd. Pakistan
(Distribution center). In this report I have discussed all the major aspects of the GFC as a
whole and its Distribution centerwhich I observed during my internship in the particular
branch. In this report you will find the business volume, function, current position, details of
all departments and SWOT analysis of GFC fans.
There are many departments such as Accounts, Sales, Purchase, HRM, Import/Export,
production and Research and Development are working in GFC fans. During my internship I
mainly worked in accounts department but I have also observed other departments of GFC
fans. So all the details regarding accounts such as cash flows, receivables, payables,
inventory and maintaining record of purchase and sales are discussed.
The main purpose of my internship was to use my knowledge by working in a healthy
practical environment in order to use my academic skills acquired during my study.
In this report detailed analysis of organization is done along with its functions, prospects and
strategies and financial position of the organization.
Furthermore, in this report all the details of my work that I did during my internship is given.
SWOT analysis and financial analysis of organization is given.
At the end recommendations and conclusion is made for the GFC by keeping in mind the
knowledge I have gained during my internship.

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Table of Contents
1 Overview Of The Organization ..........................................................................................1
1.1 Brief History Of Organization.....................................................................................1
1.2 Vision..........................................................................................................................2
1.3 Mission........................................................................................................................2
1.4 Business Volume.........................................................................................................3
1.5 Hierarchical Level Of Company .................................................................................4
1.6 Board Of Directors......................................................................................................5
1.7 Exports ........................................................................................................................6
1.8 Products.......................................................................................................................7
1.8.1 Fans ......................................................................................................................7
1.8.2 Home Appliances.................................................................................................8
1.8.3 Other products......................................................................................................8
1.9 Competitors .................................................................................................................9
2 Company Departments .....................................................................................................10
2.1 Purchase Department.................................................................................................10
2.2 Inspection Department ..............................................................................................12
2.3 Production Department .............................................................................................13
2.3.1 Motor section .....................................................................................................14
2.3.2 Body Section......................................................................................................14
2.3.3 Fitting Section....................................................................................................15
2.3.4 Packaging Section..............................................................................................15
2.4 Marketing And Selling Department ..........................................................................16
2.5 Research And Development Department..................................................................16
2.6 Internal Audit Department ........................................................................................16
2.7 Human Resource Department ...................................................................................17
2.8 Imports And Exports Department .............................................................................18
2.9 Accounts Department................................................................................................19
2.9.1 Functions And Operations Of Accounts Department ........................................19
2.9.2 Sources Of Receipts And Payments ..................................................................21
3 Plan For Internship ...........................................................................................................22

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4 Training Program..............................................................................................................23
4.1 Brief Introduction Of Branch Where I Have Worked ...............................................23
4.2 My Training And Learning .......................................................................................23
4.3 Tasks assigned to me by the accounts department....................................................24
4.3.1 Inventory accounts register ................................................................................25
4.3.2 Trial balance (FAN)...........................................................................................27
4.3.3 Daily Voucher Activity Report (FAN) ..............................................................28
4.3.4 Cash book...........................................................................................................30
4.3.5 Pass book............................................................................................................31
4.3.6 Financial statements...........................................................................................33
5 SWOT analysis .................................................................................................................37
5.1 Strengths....................................................................................................................38
5.2 Weaknesses ...............................................................................................................39
5.3 Opportunities.............................................................................................................41
5.4 Threats.......................................................................................................................42
6 Conclusions.......................................................................................................................43
7 Recommendations.............................................................................................................44
8 References.........................................................................................................................46
Table of Figures
Figure 1-1: Details of Exports during Last 13 Years.................................................................6

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1 OVERVIEW OF THE ORGANIZATION
1.1 BRIEF HISTORY OF ORGANIZATION
General Fan Company is ISO 9001 certified company. GFC is one of the largest fan
manufacturing companies in Pakistan. It was established in 1954 as a small manufacturing
company but later on it flourished and became the largest fan manufacturer and Export
Company of Pakistan. Its head office is in Gujarat and mostof its manufacturing is done in
Gujarat. In 1960the Company started exporting fans to Iraq. In 1970 due to some
management Issues Company faced the bad financial times but in 1978 the new management
took over and mechanical engineer Muhammad Ilyas became the CEO (chief executive
officer) of GFC Fan Company and Company took its new start and made itself pride in no
time. In 1982 some new machines like Automatic Capstan Lathe Machines and Die Casting
Machines were introduced. In 1985 some latest Automatic Winding Machines were
purchased from Taiwan. In 1987 a Japanese made Enameled Wire Manufacturing machine
was purchased to manufacture the quality Enameled Copper Wire for providing the quality
product to the customers. In 1993 Plastic Injection Molding Machine was installed to make
plastic parts of fans. A modern tool room was made for making dies, molds and it is consist
of Wire cut machines, EDM machines, CNC milling machines, surface grinders, cylindrical
grinders and Automatic Rotor Machines. GFC Fan Company sooner became one of the best
exporters of Pakistan and now it is exporting its products almost to 30 other countries of the
world. Due to its quality is has surpassed all of its competitors and become the best fans
company in Pakistan. It was first company receives the Export trophy and brand of the year
award.GFC has won twelve Export Trophy Awards so far.[1]

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GFC is also a pioneer in introducing the latest technologies in Pakistan and it has pride that
many other countries especially Chinese are now copying its designs and adopting its product
strategies.[1]
1.2 VISION
GFC fan vision statement is:
“Our goal is to go beyond the expectation of our customers by providing them, products of
outstanding quality and greater value, to extend presence in international market through
innovative technology and make the “PAK” brand an icon and symbol of quality on the map
of this world”[1]
1.3 MISSION
GFC fan mission statement is:
“Our goal is to exceed customer satisfaction through supreme quality products,
manufactured to the highest standards that last a lifetime.”[1]

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1.4 BUSINESS VOLUME
GFC fan (PVT) Ltd. Pakistan is the one of the largest fans manufacturer company in
Pakistan. It is progressing leaps and bounds.[1] It has more than five hundred manufacturing
units in Gujarat and few in all over Pakistan.It is capturing almost all the major markets in
Pakistan. Today it’s exporting best quality fans to more than thirty countries in the world.Last
year GFC’s total export was $13 million. And this year it is expected to be $15 million.
Haji Muhammad Ilyas CEO of GFC fans has said that despite the inflation and shortage of
gas and electricity, the export of fans has increased in the first seven months of this financial
year, compared to the last financial year.[2]
GFC fans Pakistan has total of 895,000 fans, with a monetary value of Rs 1.95 billion, have
been exported compared to last financial year's 619,000 fans, with a monetary value of Rs 1.2
billion. This shows a 45 percent volume growth this year. [2]
GFC’s total number of employees is between 501-1000.
GFC fan capturing three major markets:
 Domestic market 16 %
 South Asia 16%
 Eastern Asia 16%

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1.5 HIERARCHICAL LEVEL OF COMPANY
In hierarchy all the levels of management and workers are discussed. Board of directors and
CEO are the top management, then directors come in middle management and at the end
managers lie in low level management.
Board of Directors
Chief Executive Officer
(CEO)
Director
Marketing
Director
Fin. &Pur.
Director
Production
Manager
H. R. M
General
Manager
Accounts
Manager
Auditing
Manager
Sales
Manager
Exp. &
Imp.
Manager
Ceiling&
Pedestal
Manager
Quality Control
R & D
Department
Cashier
Internal External

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1.6 BOARD OF DIRECTORS
Shareholders select the board of director. Board of directors has the ultimate authority of
making policies and decisions of company. Board of directors selects CEO of a company.
Muhammad Ilyas and Muhammad Ijaz both are brothers and they jointly own the company.
Muhammad Ilyas is a CEO of the company and Muhammad Ijaz is a Director of finance and
purchases. All board of directors is family members. GFC Fans Company is managed by two
joint families.
Board of
Directors
Muhammad
Ijaz
Nazim Ijaz
Asim Ijaz
FarhatIjaz
Muhammad
Ilyas
Nabeel
Ahmed Ilyas
Mobeen
Ahmed IIyas
Nighat Ilyas

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1.7 EXPORTS
GFC manufacture a large range of products and it provides its products to local customers as
well as to foreign customers.[1]
In 1960 GFC started exporting fans to Iraq. GFC majorly started its exports in 1993, it is now
exporting its products in more than thirty countries over the globe. It is being known as one
of the best fans manufacturers in Pakistan. Its total exports have been reached to US$ 12
million per year and it is increasing day by day. Due to its quality it is now capturing the
markets of Asia, Middle East, Africa and Europe.[1]
GFC exports its products to USA, UK, France, Italy, Malaysia, Bangladesh, Sri Lanka, Saudi
Arabia, Qatar, Yemen, UAE, Iraq, Iran, Jordan, Afghanistan, Sudan, Djibouti, Kenya,
Mozambique, South Africa, Angola, Senegal, Cameroon, Nigeria, Gambia, Ghana, and
Congo.[1]
Details of export during last thirteen years are given in the image below:
Figure 1-1: Details of Exports during Last 13 Years

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1.8 PRODUCTS
Following products are currently being manufactured by GFC Fans.
1.8.1 FANS
Major fans categories are:
1.8.1.1 CEILING FANS
 Standard Series
 Elite Series
 Export Series
 Reversible Series
1.8.1.2 PEDESTAL FANS
1.8.1.3 BRACKET FANS
 Standard Series
 Elite Series
 Heavy Duty Series
1.8.1.4 CIRCUMATIC FANS
1.8.1.5 TCP AND TABLE FANS
 TCP
 Table

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1.8.1.6 LOUVRE FANS
1.8.1.7 EXHAUST FANS
 Exhaust Plastic
 Exhaust metal
1.8.1.8 MIST FANS
1.8.1.9 FLOOR FANS
1.8.2 HOME APPLIANCES
 Major home appliances are:
 Washing machines
 Room coolers
 Water heaters
1.8.3 OTHER PRODUCTS
 Skimming Machine
 Copper Wire
 Cooler Pump
 Cooler Fan
[1]

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1.9 COMPETITORS
Competitors are basically considered as the rivals but actually they help the company to make
strategic decisions and to make more valuable and quality products to stay in the market.
Every company wants to have a competitive edge by making cheap and quality product.
GFC has a list of competitors who are manufacturing fans in Pakistan.
Few of them are given below:
 ROYAL FANS
 PAK FANS
 YOUNUS FANS
 INDUS FANS
 MILLAT FANS
 MEFCO FANS
 METCO FANS
 VALUE FANS
 LIAQAT FANS
 KARAM FANS
 WAHID FANS

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2 COMPANY DEPARTMENTS
To run any company in an efficient way and to achieve its desired goals many departments
are need to work together. So, to work in an organized way GFC fans company works in
following departments.
List of departments is given below:
 Purchases Department
 Inspection Department
 Production Department
 Accounts Department
 Sales And Marketing
 Research And Development
 Human Resource Department
 Imports And Exports
 Internal Audit
2.1 PURCHASE DEPARTMENT
Purchase department is one of the main departments in any manufacturing company. Its
major task is to purchase raw material from local and international market. Functions of
purchase department are muchvided. Major responsibility of this department is to purchase

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goods. Quality of production depends on the quality of raw material and customer’s trust can
only be build up by providing them the best quality product.
In every manufacturing company purchase department place order for raw material and
provide that raw material to production department. GFC is the major vendor, it provides its
product to all its ware houses.
GFC (Distribution center) purchase department also purchases raw material from local
market such as Gujranwala, Lahore and other local cities. It also imports raw material from
foreign countries such as China, Taiwan, Korea, UK Honk Kong and Japan.
GFC imports following products from other countries:
 Chemicals
 Machinery
 Mini motors
 Aluminum sheets
 Copper wires and rods
 Plastic material
Purchase department take quotations and keep all the record of purchases and cost incurred.
Material
Purchased From
Market
Purchase
Department
Inspection
Department

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2.2 INSPECTION DEPARTMENT
GFC has an inspection department, whose duty is to check all the material purchased and
sold. There is an inspection incharge whose work is to check all the material received and
material in Distribution center. GFC Distribution center has an inspection department which
makes sure the quality of the product received and sold.
GFC inspection department does not allowed and accept the low quality product and sent
back all the defected material back to seller and makes sure the standard of the product.
Inspection department restrict the entry of following products:
 Defected
 Low quality
 From unauthorized dealer
Inspection department ensures the following products:
 Best quality
 From authorized dealer
 No defected good

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2.3 PRODUCTION DEPARTMENT
In every company production department has its own importance and none of the company
can flourish without good production. GFC does its major part of production itself and
manufacture all of its products in Gujarat and then supply to its Distribution centers.
GFC Distribution centergets all the products from its main vendor and supplies it to the final
suppliers of its products.
GFC production departments works under the supervision of Mr. AsimIjaz(director of
Production Department) and with his foremen. Their duty is to make sure that quality of
production as it should be.
All the staff in production department is not highly skilled but still 20 people among them
plays their role in the management and 700-800 people are labor who actually work for
quality production and they are the real assets of the company.
GFC production department is further divide into four sub departments:
 Motor Section
 Body Section
 Packing Section
 Fitting Section

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2.3.1 MOTOR SECTION
A. This is the major section of production department. In these section motors of various
products such as ceiling fan, pedestal fan, air cooler etc. is produced.
B. Ceiling fan use variety of motors i.e. 36”, 48” and 56”.
C. Pedestal fans motors are totally different from ceiling fans’. This department produces
motors for pedestal fan as well.
D. Room cooler uses motor in two ways; for fan and for water pump.
This section also covers the following sections:
2.3.1.1 WINDING SECTION
In this section copper wire is used and is made winded to make the motors and for further
production.
2.3.1.2 COIL TESTING SECTION
In this section the coil for winding is being tested and only recommended wire is used for
winding section.
2.3.2 BODY SECTION
In this section bodies of various departments are made no matter whether the body is made up
of plastic or any metal. Bodies of fans, washing machines, coolers, heaters and other products
are made.
This section consists of following subsections:
 Blade Section

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 CNG Milling Section
 Plastic Molding Section
 Copper Wire Section
2.3.2.1 BLADE SECTION
In this section blades for fans and air cooler are produced and this section makes sure the
quality and elegant design of product.
2.3.2.2 PLASTIC MOLDING SECTION
This section is particularly for the plastic manufacturing. Plastic is used for manufacturing of
plastic bodies and spare parts of various products.
2.3.2.3 COPPER WIRE SECTION
In this section GFC makes copper wire for its own production and for selling in the market.
This copper wire is used for motor winding.
2.3.3 FITTING SECTION
In this section all the parts manufactured in different sections are assembled to make final
product. In this section finished product is made to sell.
2.3.4 PACKAGING SECTION
It is the final section before the product is going to sell. After packaging products are sent to
selling marketing department which actually makes the product sell in the market.
Raw
Material
Production
Department
Finished
Goods

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2.4 MARKETING AND SELLING DEPARTMENT
Selling and marketing department is very important in all the companies. This section
actually makes the product sell and work as a bridge between company and customer. This
department advertises the company’s product that is manufactured.
In GFC Mr. Nabeel Ahmad Ilyas son of Muhammad Ilyas working as director of marketing
and it is his responsibility to advertise and market the product. Marketing department actually
let the customers know about the specialty and specification of product.
GFC sells its product in many local markets as well as in foreign market. It is selling its
product 40% registered companies and remaining 60% to nonregistered companies. Mainly in
Karachi GFC occupies 18% of market out of 40%.
2.5 RESEARCH AND DEVELOPMENT DEPARTMENT
Research and development (R&D) is very important in any company and it takes the
companies away from their competitors. This department makes research of market and its
changes. This department informs the production department about the taste of customer and
varying trends of the market.In GFC department Mr. Shahbaz is the manager of Research and
Development department.
2.6 INTERNAL AUDIT DEPARTMENT
Internal audit is done to check the responsibility of accounts department and it reconciles all
the errors done in the accounts whether intently or un-intently.

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GFC also has internal audit department which is working under the supervision of Mr. Malik
Tafheem.
Major responsibility of this department is to maintain the accounts of the company and make
sure that are error free.
This department prevents company account from all kinds of frauds occurring in the
company and saves the company from a great loss.
2.7 HUMAN RESOURCE DEPARTMENT
Human resource department is responsible of hiring, training and firing of employees.
Like many other companies GFC also has a human resource department which does all the
functions mentioned above.
GFC has human resource department which works on employees training, improving their
skills and to motivate them.
There are three types of training done in GFC HR department:
 Induction Training
 On The Job Training
 Off The Job Training
There is a well-trained team behind every successful business. GFC has a best team that
collectively works for the completion of company’s goals.
Employee’s selection is done after a complete recruiting process. Any person who fulfills the
jobs requirement is selected on merit basis.

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2.8 IMPORTS AND EXPORTS DEPARTMENT
Strength of GFC depends on exports a lot. Mr. Shahid Ali is the manager of this department.
And this department is really the revenue generator for GFC Company. GFC exports
machinery and many other parts from many other countries such as China, Japan, HongKong,
Taiwan etc.
GFC also exports its products to thirty other countries such USA, UK, France, Italy,
Malaysia, Bangladesh, Sri Lanka, Saudi Arabia, Qatar, Yemen, UAE etc.
In 1960 GFC started exporting fans to Iraq. GFC majorly started its exports in 1993, it is now
exporting its products in more than thirty countries over the globe. It is being known as one
of the best fans manufacturers in Pakistan. Its total exports have been reached to US$ 12
million per year and it is increasing day by day. Due to its quality it is now capturing the
markets of Asia, Middle East, Africa and Europe.
This department is actually responsible for maintaining the imports and exports as per need.
Imports and exports department of GFC is very important and working vigilantly for
capturing global markets for importing and exporting products. Especially GFC is unique in
exporting fans and many countries are appreciating quality and durability of GFC because of
their advanced technology and cheapness in prices.

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2.9 ACCOUNTS DEPARTMENT
For any organization Accounts department is the most important department. None of the
organization can run without maintaining their accounts. It is really a vast and complicated
department because it deals all kinds of monitory related issues. Such as income, expenses,
salaries of employees etc.
GFC accounts department works under the responsibility of Mr. Shahid-Ur-Rehman who is
the general manager of accounts department.
GFC Distribution center account department is maintained by Muhammad Saleman Chowhan
who is the accounts manager here.
2.9.1 FUNCTIONS AND OPERATIONS OF ACCOUNTS DEPARTMENT
Following functions are performed by the accounts department:
Prepare statement of daily receipts and payments
 Voucher Preparation
 Preparation Of Financial Statement
 Cash Disbursement
 Monthly Trail Balance Preparation
 Ending Adjustments
 Monthly Cash Flows Projection
 Bank Reconciliation Statements
 Sales Invoices
 Sales Tax Invoices
 Report To FBR

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It also performs the following functions:
 Inventory Reports
 Comparison Of Cash Flows Actual Vs Budgeted
 Capital Investment
 Fixed Assets Schedule Report
 Receivables
 Payables
 Fixed Overheads
 Variable Overheads
 Preparation Of Productions Statement
 Preparation Of Stock Statements
 Wages And Salaries Preparation
 Sales Volume Preparation
 Capital Budgeting
 Raw Material Including Material On The Way
 Finished Goods Stock
 Advances And Receipts
 Factory Over Heads
 Cash/Bank Balance In Hand
 Cash And Pass Books

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2.9.2 SOURCES OF RECEIPTS AND PAYMENTS
2.9.2.1 SOURCES OF RECEIPTS:
 Recovery From Sales Through Distribution center
 Sales Proceeds Of Left Over Material
 From Export
2.9.2.2 SOURCES OF PAYMENTS:
 Wages
 Staff Salaries
 Utilities Expenses
 Govt. Dues
2.9.2.2.1 GOVT. PAYMENTS:
 Custom Dues
 Sales Tax
 Electricity, Sui Gas And Telephone Bills
2.9.2.2.2 PAYMENTS TO SUPPLIERS
 Suppliers Are Paid On Credit/Cash Basis
 Vendors Are Paid On Cash Basis
 Payments To Foreign Suppliers

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3 PLAN FOR INTERNSHIP
For my MBA (finance) program I was required to do internship for at least twenty weeks. I
was also supposed to do work in any finance department where I could use my academic
knowledge practically and could be able to learn more about accounts and finance. I searched
for commercial organization and applied for internship. Finally I got a chance to work in
GFC Distribution center situated in Rawalpindi. It was a store room of great and possibly one
of the largest fan manufacturing companies In Pakistan.
I was basically intending to work in accounts department but when I entered in that friendly
environment I got opportunity to learn many other departments and the working of GFC in
large.
GFC Distribution center is working as a hub supplier of GFC’s products of the region. It has
sixty cities and almost four hundred (dealers) customers that purchase GFC’s products and
supply to final users. The GFC Distribution center customers’ city region starts from Jhelum
to Kashmir.

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4 TRAINING PROGRAM
4.1 BRIEF INTRODUCTION OF BRANCH WHERE I HAVE WORKED
I got training for twenty weeks in GFC Distribution centersituated in Rawalpindi.
MalikNaheed sultan is the managing director of the center. M. Suleman Chowhan is the
manager of accounts. Other staff are assistant manager and other non-managerial staff. This
distribution center is supplying GFC fans products to more than twenty cities of Pakistan and
it has more than four hundred customers.Following are the standard operations that are being
performed in Accounts department of the distribution center:
 Inventory
 Purchases
 Sales
 Accounts
4.2 MY TRAINING AND LEARNING
I worked under his supervision. Working environment suited me up to my satisfaction. I got
major training in accounts department but I learned working of all other departments as well.I
tried to learn all the working in the finance department. I was assigned to maintain accounts
department. Present working accountant helped me a lot learning about all the functions and
working of accounts department and maintain them quite well. He also helped me
understanding the practical implications of what I have learned during my academic career in
MBA.

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In addition I also learned about the other departments of Distribution center besides Accounts
department such as purchase department, audit department and inspection of material as well.
During my internship time span I learned all major standards of operations of GFC
Distribution center
GFC Distribution center has a single vendor which is GFC and it is supplier too. Its accounts
department majorly works on following accounts.
Major accounts I worked in during my internship in GFC Distribution centeraccounts
department:
4.3 TASKS ASSIGNED TO ME BY THE ACCOUNTS DEPARTMENT
 Inventory Register
 Trial Balance
 Daily Voucher Activity
 Cash Book
 Bank Book (Pass Book)
 Auditing Report
 Purchases Account
 Sales Account
 Receipts Account
 Payments Account
 Capital Budgeting
 Financial Statements
 Reconciliation Of Accounts

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Details of all departments and work I have done during my internship is given below along
with general entries and working for each.
4.3.1 INVENTORY ACCOUNTS REGISTER
Inventory or stock is most important account of any manufacturing company so as GFC
Distribution center has inventory account register which records the following items:
 Opening Inventory
Inventory in last year in storeroom
 Sales to Customers
Sales to customers
 Sales Return
Return of the defected inventory from customers
 Purchases
Purchases from vendor (GFC)
 Purchases Return
Return of defected material from store room to vendor
 Issued Quantity
Quantity issued to customer on credit/cash basis
 Received Quantity
Quantity received from vendor or suppliers
 Per Unit Rate
Per unit rate of each product belongs to different category
 Closing Inventory
Inventory at the end of month or year

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Specimen for inventory register is given:
Narration:
Above entry is about bracket fan, it shows all the transactions done in a day with opening and
closing quantity and balance.
Entry belowis about ceiling fan, it shows all the transactions done in a day with opening and
closing quantity and balance.
Similarly all the transactions are done and at the end of period total balance and quantity for
each item is calculated.
Total balances and quantity in books must be matched with the quantity in the storeroom.
(The values for the data above were assumed for demonstration only)
Inventory Register
GFC Pvt. Ltd Pakistan (Distribution center)
For the month of February 2015
(Bracket fan)
Code
Qty.
Item
Name
Open
Qty.
Sales
Qty.
Sales
Return
Purchases Purchases
Return
Closing
Qty.
Pur
Rate
Amount
005 Bracket
Fan
5 3 1 8 2 9 2000 18000
(Ceiling Fan)
Code
Qty.
Item
Name
Open
Qty.
Sales
Qty.
Sales
Return
Purchases Purchases
Return
Closing
Qty.
Pur
Rate
Amount
001 Ceiling
Fan
10 5 1 5 3 8 3000 24000

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4.3.2 TRIAL BALANCE(FAN)
A trial balance is a list and total of all the debit and credit accounts for an entity for a given
period – usually a month. The format of the trial balance is a two-column schedule with all
the debit balances listed in one column and all the credit balances listed in the other. The trial
balance is prepared after all the transactions for the period have been journalized and posted
to the General Ledger.
Key to preparing a trial balance is making sure that all the account balances are listed under
the correct column. The appropriate columns are as follows:
Assets = Debit balance
Liabilities = Credit balance
Expenses = Debit Balance
Equity = Credit balance
Revenue = Credit balance
GFCDistribution center prepares the trial balance in the same way.
Specimen for trial balance is given:
Trial Balance (Fan)
For the period of………!
Account
ID
Account Name
Opening Current Closing
Dr. Cr. Dr. Cr. Dr. Cr.
01-002-005 Customer A 00 5000 00 00 00 5000
01-003-006 Customer B 1000 00 00 200 800 00
01-003-007 Customer C 4000 00 00 00 4000 00

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Narration:
In the above three entries a trail balance is prepared for the GFC Distribution center
customers, as you can see that when some product is sent to customer the company Cr. Its
customer and when some amount is received company Dr. It. Same way trial balance is
prepared and balanced at the end.
4.3.3 DAILY VOUCHER ACTIVITY REPORT (FAN)
4.3.3.1 RECEIPTS AND PAYMENTS
Daily activity voucher report is basically for both receipts and payments from the customers
on daily basis.When cash is received a voucher receives and similarly when cash is paid a
voucher is recorded in daily voucher activity books.
Receipts:
When some amount is collected form customer we record an entry:
Debit Credit
Cash A/C xxx 00
Customer A/C 00 xxx
Narration: cash received from customer

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Payments:
When some amount is sent through Bankto main GFC account, we record entry as:
0
Note: along with account name, voucher sequence, voucher type and voucher date is also
mentioned.
That all is done on worksheet.
A specimen for daily voucher entry is given under.
Specimen for receipts and payments of voucher is given under:
Daily Voucher Activity Report (Fan)
Debit Credit
Bank A/C xxx 00
Cash A/C 00 xxx
Narration: cash payment is made to GFC through bank
Receipts:
Voucher
Date
Voucher
Seq.
Account
Code
Account Name Debit Credit
01-01-15 10001 200005 Cash A/C 50000 0
01-01-15 10001 200002 Customer A A/C 0 50000
02-01-15 10002 200005 Cash A/C 80000 0
02-01-15 10002 200004 Customer B A/C 0 80000

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Narration: in the above entries cash is received from customer A and B and voucher is made
and recorded.
Every account has its unique code. As you can see cash account has a code; 20005 so it
means wherever Cash is recorded it have the same code, same as for all other accounts.
4.3.4 CASH BOOK
Cash book is basically a financial journal that contains all cash receipts and payments,
including bank deposits and withdrawals. Entries in the cash book are then posted into the
general ledger. The cash book is periodically reconciled with the bank statements as an
internal method of auditing.
So GFC distributor center has a cash book that records of its cash transactions.
It also records all the expenses which are made on daily basis.
Specimen of Cash book is given under:
Payments:
Voucher
Date
Voucher
Seq.
Account
Code
Account Name Debit Credit
03-01-15 10005 50004 Allied Bank A/C 40000 0
03-01-15 10005 20005 Cash A/C 0 40000
04-01-15 10006 50004 Allied Bank A/C 70000 0
04-01-15 10006 20005 Cash A/C 0 70000

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Cash Book
Narration:
In the above table few temporary accounts are made. You can see that all the receipts are
debited and all the outflows are credited and after each entry updated balance is given.
Similarly all the entries are recorded and at the end of the period updated balance is made. At
the end reconciliation of cash and pass book is done.
4.3.5 PASS BOOK
Contrary to cash book pass book is written by the bank but remains in the depositor's
possession.Money deposited is entered on the credit side and withdrawn on the debit
side.GFC distribution center also maintain a pass book of accounts which at the end helps for
the reconciliation of accounts.
Date Voucher A/C
ID
Account Name Narration Debit Credit Closing
Opening Balance 2000
05-02-15 600005 12345 Ali Electronics Amount Received 1000 0 3000
05-02-15 600006 78967 Freight In Truck Rent 0 50 2950
05-02-15 600007 34567 Ahmad & sons Amount Received 2000 0 4950
05-02-15 600008 10002 Allied Bank Money Withdrawn 0 1000 3950

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General entries in Pass book are as follows:
Pass book
Narration:
In the above general entries you can see the amount collected is credited in pass book and
amount withdrawn is debited in pass book.
Same like cash book an updated balance is made and at the end of the period it is reconciled
with the cash book.
All the books of accounts are maintained manually before posting it to the computerized
sheets so that all the data can be maintained properly and error free.
Date Particulars Debit
(Withdrawals)
Credit
(Deposited)
10-10-14 Cash A/C (check no….) 80000 0
Narration: cash withdrawn by check
11-10-14 Cash A/C 0 60000
Narration: cash deposited

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4.3.6 FINANCIAL STATEMENTS
The standard contents of a set of financial statements are:
4.3.6.1 BALANCE SHEET
Balance sheet is one of the major financial statements used by accountants and business
owners.It shows the entity's assets, liabilities, and stockholders' equity as of the report date. It
does not show information that covers a span of time.
GFC distribution department prepares a balance sheet at the end of a period and its basically
tells the actual position of company.
Here is a simple sample of balance sheet:
GFC fans (distribution centre)
Balance sheet
For the year…………!
Assets Liabilities& Owners’ Equity
Current Assets Current Liabilities
Investments Long-Term Liabilities
Property, Plants and Equipments Total Liabilities
Intangible Assets
Other Assets Owners’ Equity
Total assets Total Liabilities & Owner Equity

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From this statement company actually finds its financial position. Most of the financial ratios
such as solvency ratio, quick ratio, current ratio and turnover ratios are calculated to check
the current position of company.
4.3.6.2 INCOME STATEMENT
It shows the results of the entity's operations and financial activities for the reporting period.
It includes revenues, expenses, gains, and losses.
A sample of double entry income statement is given under:
GFC fans distribution center
Income statement
For the year………………!
Sales (Revenues) xxx
Less: Cost of goods sold (xxx)
Gross profit xxx
Less: Operating expenses:
Wages expenses xxx
Rent expenses xxx
Utilities expenses xxx
Admin expenses xxx
Depreciation expenses xxx
Interest expenses xxx
Total expenses: (xxx)
Total income xxx

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Above sample is according to double entry system. Company prepares income statement to
check the net losses.
By using income statements company finds the ratios such as gross margin, earning per share
(EPS) and times interest earned etc to check the financial position of the company.
4.3.6.3 STATEMENTOF CASH FLOWS
Statement of cash flow shows changes in the entity's cash flows during the reporting period.
GFC Fan Company also maintains the financial statements of above the kinds. It has three
sections
1. Cash Flows from Operating Activities
This section includes cash flows from the principal revenue generation activities such as
sale and purchase of goods and services. Cash flows from operating activities can be
computed using two methods. One is direct and the other indirect method.
2. Cash Flows from Investing Activities
Cash flow from investing is cash in-flows and out-flows related to activities that are
intended to generate income and cash flows in future. This includes cash in-flows and out-
flows from sale and purchase of long term assets.

36
3. Cash Flows from Financing Activities
Cash flows from financing activities are the cash flows related to transactions with
stockholders and creditors such as issuance of share capital, purchase of treasury stock,
dividend payments etc.
The cash flow statement provides a crucial link between the income statement and the
balance sheet. The cash flow statement helps you ascertain whether cash is coming from
normal operations, whether a firm is reinvesting in itself, and if a firm is raising additional
cash.

37
Analysis of the GFC fan company Pakistan:
5 SWOT ANALYSIS
SWOT basically is a short form of Strengths, weaknesses, opportunities and threats.
SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and
for identifying both the Opportunities open to you and the Threats you face.

38
Strengths and weaknesses are the internal factors whereas opportunities and threats are the
external factors affecting the company. For this SWOT analysis is sometimes called the
internal-external analysis. Strengths and opportunities are the helpful area of achieving the
objectives whereas weaknesses and threats are the harmful area to achieve the objectives.
Short definition of all the four parts is given under along with a complete SWOT analysis of
GFC fans company Pakistan is given.
5.1 STRENGTHS
The strengths segment of a SWOT analysis provides an area to list everything done right
either individually or as an organization
Strengths tell us about the following things that needed to be taken into account to achieve
the goals.
 What advantages does our organization have?
 What do we do better than anyone else?
 What lowest-cost resources can we draw upon that others can't?
 What do people in your market see as our strengths?
 What factors mean that we "get the sale"?
By keeping in mind all the given points GFC fans have the following strengths:
 GFC has following edge over its competitors:
 GFC is the largest manufacturer of fans in Pakistan
 GFC the largest market in the Pakistan
 GFC has the highest export of fans

39
 GFC has the largest captured market globally
 GFC providing the best quality
 GFC using the latest machinery to manufacture its products
 GFC has a stream of products
 GFC’s products are cheaper than its customers
 GFC is a contributing the major part in GDP
 GFC has the flexibility to meet market changes
 GFC providing a great number of job opportunities
 GFC providing the best innovation products
 GFC products are less harmful to the environment
 GFC always makes customer oriented books
5.2 WEAKNESSES
The weaknesses segment contains needed improvements within an organization or
personally. Weaknesses are the internal but harmful region of any organization to achieve its
goals.
Weakness area basically tells the followings things to be considered:
 What could we improve?
 What should we avoid?
 What are people in our market likely to see as weaknesses?
 What factors lose we sales?
 Our company has no market presence or reputation

40
 We have a small staff with a shallow skills base in many areas
 We are vulnerable to vital staff being sick, leaving, etc.
 Our cash flow will be unreliable in the early stages
By considering all of above points GFC has the following weaknesses:
 GFC is investing less in inspection R &D department.
 GFC still lacking in technology
 GFC paying less attention to its economy of scale
 GFC is paying less attention to rural area market
 GFC has male dominated workforce
 GFC is mostly stagnant with the fans only
 GFC is providing comparatively less pay to its employees
 GFC has all it manufacturing in Gujarat
 GFC has Low electricity safety standards
 GFC is only restricted to urban areas
 GFC has non-proactive marketing
 GFC has comparatively less staff in its distribution centers
 GFC is paying less attention regarding solar energy consumption

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5.3 OPPORTUNITIES
Next part of SWOT analysis is Opportunities. It means opportunities for improvement exist
within all organizations. This makes the opportunities segment of the SWOT analysis
important. Within this segment, organizations identify internal and external opportunities.
Opportunities are the basically the external factor bur helpful to achieve the company’s goals.
Useful opportunities can come from such things as:
 Changes in technology and markets on both a broad and narrow scale.
 Changes in government policy related to your field.
 Changes in social patterns, population profiles, lifestyle changes, and so on.
 Local events.
 Our competitors may be slow to adopt new technologies
By taking into account all the above mentioned points GFC is starving to capture its
opportunities, which are as follows.
 Growing demand in export market
 Growing demand in rural areas
 Scope for economies of scale
 Innovation towards energy efficient fans
 Innovation regarding solar energy consumption
 Capturing more international market
 Adopting latest technology to reduce cost
 Using workforce diversity concept

42
 Producing other electric appliances
 Hiring professionals to improve quality
 Franchising abroad to reduce custom charges
5.4 THREATS
Threats are basically the external factors that adversely affect the goodwill of business. By
examining threats, such as new competitors in the market, organizations can implement
counter measures prior to the threat occurring.Threats are basically about:
 What obstacles do we face?
 What are our competitors doing?
 Are quality standards or specifications for our job, products or services changing?
 Is changing technology threatening our position?
 Do we have bad debt or cash-flow problems?
GFC is facing following threats:
 Emerging of global competitors
 Low electricity safety standards
 Decreasing trends in Income of customers
 Local political issues
 Negative image of Pakistan due to terrorism
 Demand for imported products
 Industry resistance to change
 Low entry and exit barriers for new entrants
 Change in mood, life style and demands of customers

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6 CONCLUSIONS
It was really an excellent experience for me to work in GFC fans (distributions centre).
During my internship I learned a lot about the real aspects of business and I really helped me
to explore my interpersonal skills and to utilize my academic skills into practical work.
After doing internship I have become more confident and responsible in my work. I have
learned to deal with the audience and to work with colleagues and it helped me to enhance
my skills of interacting with the people of different areas.
Since I have specialized in finance so, my internship in accounts department really helped me
to have command over finance related matters. I tried to learn all the major aspects of finance
department and documents that are prepared to run the distribution center accounts.
During my internship I also learned how to behave and help out the peers during work.
GFC has become one of the largest manufacturing industries in Pakistan and it is progressing
leaps and bounds. So, all of its departments are doing well. It is also launching its products in
abroad and it’s maintaining its quality also.
During my internship I have learned all the major things required maintaining accounts and I
also was able to observe the methods and strategies required to run business.
Besides accounts departments I observed the other entire department working in GFC
distribution center especially sales and purchased of products.
All the departments working in GFC are discussed and at the end SWOT analysis explains all
the strengths, weaknesses, opportunities and threats of GFC.

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7 RECOMMENDATIONS
During my internship in GFC fans distribution center I have observed all the functioning of
the center and tried to focus on the working GFC fans company as a whole. GFC is working
quite efficiently but still there is a need of improvement in many departments.
Though GFC is a leading fans manufacturing company in Pakistan but still there are many
areas where lot of improvement can be made to fill up the flaws which are also discussed in
SWOT analysis.
Here are some problems observed by me are discussed with their solutions.
 GFC is still paying more attention to production department, it should give attention
to other departments especially R&D and inspection department.
 GFC is paying less attention to its employees especially on their salary package, due
to low salary there is less motivational level of employees. Commitment level of
employees can be increased by addressing properly.
 Another major issue is that FGC is run by two joint families and they are the board of
directors and decision makers of the company so, due to no involvement of employees
in management they are less owning GFC and try not to stay long time. There
motivational level can be increased by giving them part in decision making.
 GFC technology is still not up to international standard so, it be raised up by
searching the global market. MIS system should be more efficient so that manual
system can be eliminated.
 In accounts department GFC is still using the old system so that should be replaced by
latest accounting software.

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 GFC is less focusing on the rural areas so it should focus on the rural areas as well to
increase the size of its market.
 GFC is doing all of its manufacturing in Gujarat, it should shift manufacturing to
some other areas as well so that carriage and freight cost can be decreased.
 GFC should diversify its business by investing in other electric appliances so that risk
can be minimized.

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8 REFERENCES
[1] "Gujrat Online," [Online]. Available: http://www.gujratonline.info/fanindustry.php.
[2] "GFC Fans," [Online]. Available: http://www.gfcfans.com/.
[3] "Pak Biz," [Online]. Available: http://pakbiz.com/Fan_SID104.html.

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