SUMMER INTERNSHIP REPORT 0.2v [FINAL]

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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

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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 ofCommerce,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

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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

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ACKNOWLEDGEMENTS
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

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TABLE OF CONTENTS
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

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1.1 Company Profile :
United Grease & Lubricants Co. LLC with its brand name SCOPEwas 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 :
 SCOPEBrand :-
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 :
a. SCOPE Denim 9050 Ultra Super Diesel Engine Oil – CJ4

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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
d. SCOPE TEXTRON - General Purpose Oil

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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
h. SCOPE PREMIUM LITHIUM COMPLEX WITH 5% MOLY GREASE

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 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

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Major Clients :
 Luk Oil
 Patronas
 Servo
 Sharlu

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Chapter 2
Funtional areas of the company

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TopManagement Sales and
Marketing
Finance
Purchase
Production
Logistics

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1) Top Management :
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.

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2) Sales and Marketing :
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.

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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
filling, to speed up production process.

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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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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.

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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.

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Chapter 4
Organizaional Performance

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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.

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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 .
 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.

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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.
 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.

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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 )
 International = AED 43,400,000/-
 Local = AED 18,600,000/-
All Expenses = AED 49,600,000/-
Profit : AED 12,400,000/-

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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.
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.

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 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 :
1st week :
 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.
2nd 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.
3rd 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.

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 Breifing on company’s strategy to sucessfully dodge from crisis from recent fall in oil
prices (2014-2016)
4th 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.
 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.

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BIBLIOGRAPHY :
 http://www.unitedgrease.com/

SUMMER INTERNSHIP REPORT 0.2v [FINAL]

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