1. Submitted by:
UME KALSOOM SHOUKAT
Id no:
BBA-14-2102
SESSION:
2014—2018
Internship From:
2 July 2018 - 10 august
Submitted To:
UNIVERSITY OF EDUCATION
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ACKNOWLEDGMENT
First of all, I say thanks to god who make me able to understand the circumstances. On the
second my mother, she always inspired and support me to strengthen and groomed me in a way,
what I am today.
I say thanks to Mrs. Mehwish Shahzad; HOD of BBA (HONs), who introduced us to the
Methodology of work.
I acknowledge with deep gratefulness the invaluable help SIR.WAQAS (our supervisor) teach us
side by side. SIR. ASADULLAH (manager corporate finance) teach us different things beside of
work. SIR. IRFAN & SIR. SALEEM (manager of treasury department) both teach me very
deeply the concept of finance department.
And in the last, I thankful to my all colleagues who help me always in making projects,
discussions, and when help me when I am in trouble.
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EXECUTIVE SUMMARY
I have my internship in ‘’PEL’’. The system the style of working and the commitment of the
employee in ‘’PEL’’ is exemplary. The internship basically revolved around the cash inflow,
outflow and management. The style of sitting arrangements is ‘’open space desk type’ ’.As I
have done internship in PEL finance department so, there are 5 sections in finance department.
Essentially sections depends on the company if the company counts in SME’S then department
and sections must be small. And if company is large then sections and department will be vast as
in the PEL.
The work starts from budgeting section, the master budget makes according to the all
departmental expenses and focus on the cost centered. Second is the corporate management
section, all legal works are done like letter of credit or pledgers’ etc. and this section is also
responsible to make the money or capital available for expenses. Treasury section deals with
cash inflow or outflow. In short management of cash after receipts and payments. They make
vouchers and do unclear and clear transaction. Confirmation the collection of payment.
Receivables section as its name expressed that it collects the payments. And make record always
update. They also do manual recording along digital recording.
At the last, inventory management section manages the inventory in production department,
pledge material. Check physically existence of goods in go-down etc.
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Table of contents
Chapter 1 page no.
1- Overview of the organization…………………………………………..……… 1.
Brief history……………………………………………………. 1
Introduction…………………………………………………… 2
PEL marketing activities ………………………………………7
Policy of the organization ………………………………………8
Competitors……………………………………………….9
1.2 Organizational structure……………………………………………………10
Hierarchy chart…………………………………………..10
Number of employees…………………………………….11
Main offices………………………………………………11
List of all departments………………………………..….11
Comments on the structure……………………………..…12
1.3 Plan about internship program………………………………………………12
Chapter 2
2.1 Internship program……….……………………………….……….………… 13
2.2 Department work………………………………………………………….…….14
2.3 project …………………………………………………………………………...19
2.4 Daily reporting…………………………………………..…………..………… 20
Chapter 3
3.1 Critical analysis…………………………………………………………………..24
Swot analysis…………………………………………….24
Pest analysis……………………………..……………..25
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1- Overview of the organization
A- HISTORY OF PEL:
PEL is the inventor industrialist of electrical goods in Pakistan. In 1956, the company was setup
by Malik brothers in technical collaboration with m/S AEG of Germany to manufacture
transformers, switchgears and electric motors. AEG existed from the venture and sold their
shares of PEL to the Malik brothers in the later 1960s. Which was subsequently acquired by the
SAIGOL group of companies in 1978.
Until the attainment by the SAIGOL group, PEL was solely catering the power equipment
market. The company ventured into home appliances market in 1981 after acquisition as a part of
the group long term strategy diversification.
IN 1988, PEL listings with all stock exchange in Pakistan acquired license to
manufacture VCB’s from Hitachi, japan.
In 1992, started production of energy meters under the license from ABB USA.
In 1994, Quality Management System Certification for Energy Meter ISO 9001 by SGS.
In 1997, acquired technology from carrier to manufacture air conditioner.
In 2000, launching of new crystal refrigerator.
In 2004, acquired technology from hungry to produce power transformer.
In 2006, formal start EPC segment of company.
In 2009, got 4th CSRnational excellence award.
In 2010, inauguration of new distribution transformer factory by a prime minister.
In 2011, launching of new desire series refrigerator with SEC.
In 2012, launch of new arctic series refrigerator with new aesthetics.
In 2014, launching of new glass door refrigerator.
In 2015, launching of glass door mirror series.
In 2016, launching of inverter refrigerator& AIR conditioner series.
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B-INTRODUCTION OF PEL:
MISSION :
To excel in providing engineering goods and services
Through continuous improvement.
Vision:
To provide quality products and services to the complete satisfaction
of our customer and maximize return for all stakeholder through
optimal use of resources.
To focus on personal development of human resource to future challenge.
Since its inception, the company has always been contributing towards the advancement and
development of the engineering sector in Pakistan by introducing a range of quality electrical
equipment and home appliances.
The company comprises of two divisions:
1- POWER DIVISION
2- APPLIANCE DIVISION
STATEMENT OF ETHICS:
We commit to serve this nation by consistently providing high quality engineering products and
home appliances to facilitate our citizens. We strive for national interest by fulfilling our
responsibility ethically, providing employment opportunities and making reliable sales.
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C- PEL MARKETING ACTIVITIES:
Its market strategy encompasses market research, brand positioning and market communications
as well as right decision in terms of incentives and dealers to ensure smooth running of dealers
network.
BUS BRANDING
Dealer Shop Inauguration
CINEMA CAMPAIGN
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D- Policies of PEL
Every Company makes a policy that can help to grow business, increase
sales, these are the basic policy. But further policies depend upon the
company structure and its size.
IN CORPORATE STRATEGY:
Remain competitive in industry by focusing on consumer needs.
Improved quality and after sale service, research& development, cost economization.
Efficiency improvement.
CODES OF CONDUCT:
Honesty & integrity
Unlawful activities
Unfair advantages
Conflict of interest
Other engagements
Confidentiality
Expand product line
IT. GOVERNANCE POLICY:
Focused on implementing the best and latest IT technologies and infrastructure
make enable efficient and timely decision making.
WHISTLE BLOWING POLICY:
The purpose of this policy is to encourage all stakeholder to raise question and concern,
concern, monitor the progress of inquiries. This policy is applicable to all employees,
management and the board and every individual associated with company who can
participate effectively and in confidentiality without fear of reprisal.
SOCIAL AND ENVIRONMENTAL POLICY:
&
POLICY OF SAFETY OF RECORDS.
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E- COMPETITORS:
United Refrigeration is PEL no. 1 competitor at international level.
Southern is the biggest rival of PEL they compete in air conditioning and refrigeration.
United Refrigeration Southern is headquarter in Portsmouth. The company based in south of
England.
DAWLANCE is PEL's #2 competitor.
Dawlance is a Private company that was founded in Karachi, Sindh in 1980. Dawlance has
4,997 fewer employees vs. PEL. IN PAKISTAN MARKET dawlance have a big share of
market. Dawlance deals in the home appliance air conditioner, refrigerator, oven, electric
products etc.
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B- NUMBER OF EMPLOYEES:
As we all know that PEL is a huge company so there workers not be in
numbered or hundreds. Employees are in the thousands. PEL have almost 7,000 employees in
there company. May be, this counting depends on, and vary branch to branch.
C- MAIN OFFICES:
14-KM FEROZPUR ROAD LAHORE 54000
REGISTERED OFFICE: 17-AZIZ AVENUE, CANAL BANK,
GULBERG –V LAHORE
D- LIST OF ALL DEPARTMENTS:
There are many departments in the PEL there names are:
ACCOUNTS
IMPORT &
EXPORT
STORES
FINANCE
QUALITY
CONTROL
MAINTENAN
CE
SALES
MARKETING
ADMIN &
H.R
PRODUCTION
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E- COMMENTS ON THE ORGANIZATIONAL STRUCTURE:
According to organizational hierarchy there are two types: functional and
administrative reporting. PEL is a big name so different positions they needs to manage
to company so it should not be change as much but if I am talking about the departments
of PEL there numbered are more than their needs. Accounts and finance should be
combined. Import & export should manage in the corporate section. Admin & H.R also
combined. Production & maintenance should not separate.
1.3 Plan of internship:
A- BRANCH OF INTERNSHIP:
2 branches of PEL is located in Lahore.
And the other one is unit 1. (near the Qainchi Metro Station Lahore)
One is called unit 2 (16M Abdul Haque Rd, Trade Centre Commercial Area
Phase 2 Johar Town, Lahore Punjab
I did internship in unit 1. Production of home appliance is covered in unit one. Home
appliances products also have discussed in upper section.
B- INTERNSHIP DATE:
I did internship from 2 July to 10 august
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C- DEPARTMENT FOR INTERNSHIP:
I did internship in finance department. There are many sections in one department.
So the sections are like:
INVENTORY
TREASURY
RECEIVABLES
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2- INTERNSHIP PROGRAM:
2.1 DEPARTMENTAL ACTIVITIES:
The field of finance is broad and dynamic. It affects the whole
organization, it works like a man of the house because through finance department we
arrange the capital and then further working starts.
Jobs assigns in finance department:
General Manager finance --- take major financial decisions.
Manager Finance------rate negotiations, handling cash in& out,
bank relations, handling short and long term funds requirements.
Asst. Manager finance----- reports to manager, arranging funds
for production, preparation of budget.
How cash make available?
Cash finance facility
Working capital------pledge, hypothecations.
Running finance.
All the sections in the department works according to their circle but all are
interconnected not just sections but also the departments. First of all we make a
plan which productwe want to introduce then we make a budget for that product,
and send that list to corporatesections which makes capital available, and treasury
sure the transaction, inventory management further do their responsibilities toward
inventory and then receivables collects an amount. During the internship I
submitted a weekly reports of sections further detail taken from there.
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A- Treasury section
MANAGER:
Treasury department is to manage
the liquidity of a business. It means
that all cash inflows and outflows
must be monitored to ensure that
there is necessary cash to fund
company operations and PEL
employees does this perfectly They
use software for this work called
oracle, and (CMS) cash management
system.
The main objective of treasury section is:
Forecasting
Fund raising
Risk management
Bank relation etc
Executive
Managers
SIR
IMRAN
SIR
IRFAN
SIR ASIF
SIR
SALEEM
SIR
KHAWAR
MUNIR
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Employees undertakes a range of complex and skilled task, like
To reduce the outstanding liabilities
Focus on working capital
Managing the payment
PEL group has 2 divisions:
In these 2 groups PEL has further variations. To facilitate their transaction they make another
company of PEL to deal as their customer.
1-Main is PEL
2- Sub division is PMPL (PEL Marketing Private Limited)
At the end, all payments transferred from PMPL to PEL account of centralized bank
(national bank).
Power divisionAppliance division
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B- RECEIVABLES SECTION:
Accounts receivable is an important aspect of a businesses' fundamental analysis. Accounts
receivables are current assets so they are a portion of a company's liquidity or ability to cover
short-term obligations without additional cash flows. Account receivable are amounts of money
owed by customers for goods or services delivered or used on credit but not yet paid.
So, the same work done by 5 employees under a manager in receivables section finance
department. All employees are interconnected.
EMPLOYEES:
Someresponsibilitiesof employees:
Post daily deposits
Process incoming mail concerning billing and invoicing
Communicate with clients about billing inconsistencies and questions
Engage management over any AR problems you encounter
Initiate collections on past-due accounts
Maintain accounting ledgers as required
Create and update a log sheet for quality control
Handle all special billing situations.
Sir
khurram
Sir abdul-
ahad
Sir tanveer
bhatti
Sir
Miss
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C- Corporate section:
Manager:
‘’The purpose of corporate finance is to maximize the value of a business through planning and
implementing management resources while balancing risk and profitability.’’
Duties & Responsibilities:
•Communicate with a large network of banks in order to development and maintain the
capital structure
Manage the company’s cash flow, interest expense, and short-term investment portfolio.
Design and execute the company’s hedging strategy as it relates to foreign exchange and
interest rate exposure.
Manage the international capital structure, and work on various initiatives concerning
international cash.
Manage the investment of the company’s core cash; advise the company regarding
investment choices for the various benefit plans.
Sir Munim Sir Asad ullah
SIR TAHIR
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2.2 PROJECT:
During the internship, project assigned us by our supervisor. And our topic is to
make a report about ‘’what should best mix of finance for PEL’’ (knowing the nature of seasonal
collection impact) we cover important points in report: the current situation of company, its debt
rate, their sources, what we get result at end, and the suggestion for the best source of company.
Best finance mix for PEL (seasonal impact)
To complete our project, first of all we find the source that PEL used most by debt to asset ratio:
Debt to asset ratio: credit ratio + long term debt
Current asset + net fixed asset.
Data is taken from annual report of 2017 presented by PEL.
We conclude that 34% of firm is financed by debt financing.
And debt to equity ratio : 18.37% this is less as compared to prior years it means that firm is
able to pay its debts and continuously paying as it occurs.
Seasonal impact:
Firm should ready for every situation. A successful firm has its strategies and plans ready for
difficult situation and make alternatives if they fail on one side. So PEL should
Utilize credit line
make reserves when sales increase
Plan for downtime
Focus on product that sales most.
Promote their business.
Diversification
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2.3
No. of
days
DATE INTERNSHIP DAILY ACTIVITIES FROM START TO
END:
1 2 July 2018
At the first day, all selected student combined in the auditorium.
Sir Hussnain (Head of H.R) gave us little introduction of
company and have some chit chat with us, then selection of
departments and submissions of documents.
2 3 July 2018
First day in the department, we visit the sections, and introduce
our selves to each other. Our supervisor decided our sections,
and make a partners. My first week is in treasury section. In PEL
we use the software oracle (cash management system).
3 4 July 2018
Today I learn about 2 divisions of PEL. Their centralized bank.
How they daily communicate with bank to confirm daily
transactions.
4 5 July 2018
In treasury sections, there are 4 managers. Who teach us and
guide us for their activities. Every sir have to do some same
tasks.
5 6 July 2018
Today I learn The complete process of BRS (Bank
Reconciliation Statement) & Payment of custom/duties
according area.
6
7 July 2018 SATURDAY
7
8 July 2018 SUNDAY
8
9 July 2018 I learn use of RTGS (real time gross settlement). Transfer of
funds between two banks within a day to save a time.
How to Make a Bank deposit slip.
Enter of vouchers, unclear the transactions. Not just learned we
do practical to 3 to 4 hours like entries in the syetem,use of
oracle, clearance of what we learned.
9 10 July 2018
For clearance of cheaque, signature should be from any of the
both group members, groups consist on each post level like
head, director, manager and executive.
Employees report about their work to managers on daily basis.
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10 11 July 2018
Our timing is from 9 to 4 pm. From which one hour is for
seniors break and then our shift for lunch. Half hour for namaz
so at the end we have only 3 to 4 hours for learning. On this day
we move to second section ‘’Receivables section’’
I learn that their focus is on power development category.
Usually called PD section.
11 12 July 2018
Today I learn about movements (transfer of goods from Karachi
to Lahore (desti0nation). They prepare letter of credit to import
goods, and residual goods pledges in bank to get loans and make
production process in flow.
12 13 July 2018
To record the transaction, first of all we have to enter the
customer profile into system. Then we will be able to make a
sale advice, or delivery order, dispatch order, receipts etc.
13
14 July 2018 Saturday
14
15 July 2018 Sunday
15 16 July 2018
I learn that double working is done in PEL. They also do manual
recording while recording the transaction in system. I have learn
about Sales taxes 1- Claimable 2- non claimable.
16 17 July 2018
Planning and budgeting done in this section. Further they also do
forecasting about expenses Weekly budget report turn into day
to day report.
17 18 July 2018
Make reports sheet by single product. At the end, make
summary about products to reporting seniors
18 19 July 2018
Bloom session(this is an activity day organized by PEL for
candidates, to teach them how to make c.v and prepare yourself
for interview, along some refreshment and group activities, fun
etc.)
19 20 July 2018
Due to Friday, we just do previous work. Collected our
certificate from H.R department. And submitted weekly report to
supervisor.
20
21 July 2018 Saturday
21
22 July 2018 Sunday
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22 23 July 2018
This day is starts from corporate section. I think this is the most
important part of department and company. Here I learn how
they make proposals for loans.
Pricing done with the help of KIBOR.
For specific project, they use demand loan.
23 24 July 2018 Today I learn about the loans types & from where they take
loans.
They take loan against fixed asset.
Short term loans taken from bank & NBFI.
Loan term loans taken from bank & financial institution.
24 25 July 2018 There are many things which we learn by practically, and don’t
even learn in universities like:
DAC (Bunch of document) issuance by State bank against any
type of loan.
IP documents for use of company.
25 26 July 2018 I have learned about
MUQADDAM--- caretaker of pledged material.
Letter of facility-- approval of renewal loan by bank.
Documents signed by 3 person (Relationship manager,
corporate head, unit head).
26 27 July 2018 Today we learn about guarantee. This is just like we used this
word in our life (security) & and import.
Guarantee- gives by bank for tender purpose.
95% of material used in production are imported.
To import the material we use letter of credit.
27 28 July 2018 Saturday
28
29 July 2018
Sunday
29 30 July 2018 This day I learn about another form of loan that is Bridge loan.
Usance letter of credit
Lien mark up (loan +interest) mark on company value.
PACRA (credit rating company).
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30 31 July 2018 In the last day of section I Submitted a report on excel about
Pakistan import and export of 2017(each month). Report was
submitted to senior manager of corporate section.
And further we have discussion session with our senior sir he
guide us the whole process of manufacturing process and about
company and solve the queries.
31 1 August 2018
Our last week is in inventory management and budgeting. Both
sections are combined. Budgeting section is based on
assumption and effect by both factors (internal & external).
32 2 August 2018
After research, Sales section make budget report. In making
report production dept. and common depts., roles are also
include.
33 3 August 2018 Today I learn about cost center while making budget.
First we make a master budget plan.
Budget for AD, & PD, with further divisions.
34 4 August 2018 Saturday
35 5 August 2018 Sunday
36 6 August 2018 Today we observe that sir repeat the budget again and again,
then after finalizing, make department wise budget.
37 7 August 2018 Transfer the budget plan on excel sheets with charts and
approval of managers
38 8 August 2018 Inventory management section just verified the physically
presence of goods. After using and report the remaining
products.
39 9 August 2018 Our last day, we visit our whole unit, see how manufacturing
process starts and completes of A.C, OVEN,
REFRIGERATORS, etc.
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3- CRITICAL ANALYSIS:
3.1- SWOT Analysis:
PRODUCT
DIVERSIFICAT
ION
STRONG
NETWORK
EXCELLENT
LABOUR
SKILLS
BRAND IMAGE
CONTRACT
WITH GOVT.
HIGH
FINANCIAL
LEVERAGE
SYSTEM
VARIATION
LACK OF
ADVERTISMENT
LESS
UTILIZATION
RESOURCE
LOW EMPLOYEE
SATISFACTION
GOVT.
INFRASTRUCTU
RE
APPLIANCE
MARKET
GROWTH
EXPORT
OPPOURTUNITY
INCREASE
PRODUCT
RANGE
LAW & ORDER
SITUATION
CHINESE
PRODUCT
TAX DEPT.
BLACK
ECONOMY
STRONG
COMPETITION
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3.2- PEST ANALYSIS:
LOCAL RULES UNEMPLOYMENT
RATE
NEW
ENTRANTS
RAPIDLY
change
CHANGE IN
TAXES
-VE GROWTH
RATE
LOW PRICING REFRIGENT
GASES
ENERGY CRISIS INTREST RATE PRICE
CONSCIOUS
SUPPLY CHAIN
MANAGEMENT
UNSTABLE
ENVIRONMENT
DUMPING PRICES DEMAND OF
ENERGY
Extended
services
FEW INCENTIVE
BY GOVT.
COMPETITION
INSIDE
SAVING
PRODUCT
New market
P
POLITICAL
E
ECONOMIC
S
SOCIAL
T
TECHNOLOGY
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3.3-
Depends upon: Tender advertised
Economy in newspaper.
Source
Time
Raw material
PORTER’S MODEL
Substitute PRODUCT
(HIGH)
RIVALRY
(High)
New entrants
(LOW)
Bargaining power
of suppliers
(MEDIUM)
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3.4- FINANCIAL (RATIO) ANALYSIS:
Ratios shows the financial condition of company, how many changes occur in a year, or
increase/decrease assets or liabilities in a company.
So ratios include:
Profitability ratio
Performance/ liquidity ratio
Activity/ turnover ratio
Investment/ market ratio
Capital structure ratio
Cash flow ratio.
Profitabilityratio:
Significant increase in turnover coupled with manufacturing cost efficiencies resulted in
an increase in gross profit margin for 2017 = grew by 165% during the last six years.
Net profit margin = 10.67% as compared to 13.68% for 2016.
Return on equity = 12.25%
Return on capital = 8.57%
A multiple growth is observed with in six year span.
Liquidityratio:
Current ratio for 2017 is right on track = 2.41 times
Cash to current liabilities &
Cash flow operations shown growth from = 0.02 to 0.06.
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Activityratio:
Inventory turnover ratio with no. of days in inventory = 2.74 times in 133 days
Debt turnover ratio with no. of days in receivables. = 4.42 times in 83 days.
Creditor turnover ratio with no. of days in payables. = 27.11 times in 13 days.
Total asset turnover ratio = 0.71 times.
Fixed asset turnover ratio = 2.39 times.
Operating cycle = 203
MarketRatio:
Earnings per share for the year 2017 is = Rs.6.56 per share
Price earnings ratio = 7.24 times
Dividend yield ratio = 6.84%
Cash dividend per share = 3.25 rupees
Capitalstructure ratio:
Financial leverage ratio of 0.59 times
Debt to equity ratio 18.37%
Interest cover ratio 4.49 times
Cash flows:
Cash n cash at the close of 2017 = Rs.484 million
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4- Conclusion:
It was a great experience for me to work in PEL. The main thing that I have learned is self-
improvement. If you get the job it does not mean to stop learning, you should try to learn new
things, learn from our seniors, learn from our mistakes, and get promotion in success.
Environment and behavior of employees reveals the status of company, and this thing I learn in
PEL. A very comfortable environment provided by them. As in the company they are working to
increase their level in market. I further observed that a business is not only the name of ‘’earning
home’’ there is the social responsibility on their shoulders also and PEL fulfill it very nicely.
They engage in social activities with hospitals, schools and foundations.
There is no ‘’cook book’’ to start a business. It demands a lot of energy, time, patience, strategies
etc.
I observed that customers while purchasing have focus on brand and quality like firstly they
demand dawlance so PEL have to work on this.
4.1- RECOMMENDATIONS:
PEL needs to use more billboards.
They should add creativity in ads.
Sections place must widen.
More computer or accessories should provide them.
Sitting arrangements should improve.
More focus on employees Salary.
Accounts and finance department should be close to each other
because of interconnected.
Remove the discrimination in mess.
Employees that are serving their services from a long time should be
permanent or provide security.
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5- References:
I have got information from workers and colleagues.
The other sources are:
https://www.slideshare.net/sarah101/pel-final-report
https://pel.com.pk/financial-reports/
https://www.scribd.com/.../Internship-Report-on-PEL-Pak-Elektron-Limited-Lahore
https://iowadot.gov/interstatestudy/pel-study-report
https://www.owler.com/company/pel
https://pel.com.pk/wp-content/uploads/2018/.../PEL-Financial-Annual-Report-2014.pdf
https://www.mustakbil.com/companies/company/56582
