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AcknowledgementI am highly grateful of Allah Almighty who gave me power to complete the
internship and this report. I am also thankful to my teachers of IBIT for their
guidance and support. I am also thankful to my parents and brother for
giving me support to complete my MBIT without their support I would not
able to complete my studies.
I am also appreciative to the management of Metro Hi-Tech (pvt.) Ltd. for
giving me a chance to complete my internship there. I am also thankful to
staff of the Metro who gave full support to learn especially Mr. Usman Riaz
the Finance Officer at Metro, then Mr. Abdul Rehman the AFM and Mr. Atif Zia
for guiding me during the internship. They trusted me and gave me crucial
work to do and gave me a chance to work independently.
Mateen Yunas
2
Executive SummaryMetro Hi-Tech (pvt.) Ltd. was established by "YUNAS" Group of Industries in
1973, incorporated as a Private Limited Concern on 7th October 1985. I
entered into the business of motorcycle in 2003. Metro is a private limited
company. Its main products are motorbikes that are MR-70 and MR-125.
Company wants to be remained in the business whatsoever the
circumstances are. It wants to meet the customer satisfaction as well as the
number one motorcycle company of the Pakistan in the future. Its business
volume is increasing with a good ratio each year i.e. in 2007-2008b its sale in
units was around 17000 and in 2008-2009 its sale in units is almost is 22000.
Metro has a functional organizational structure. It has eight departments.
Finance department is one of those where I completed my internship.
Metro’s marketing department is very strong as it has good product design
compared to competitors, excellent after sale service.
I did my six week internship at Metro hi-Tech (pvt.) Ltd. First five week I
spend in Finance department and the remaining one week with the Accounts
department. In finance department I perform the function of reporting on
Excel, Bank reconciliation, bank register maintaining, sales invoice and sales
tax invoices edition, check filling, check dispatching etc. But my main focus
was on reporting and bank reconciliation. While in the Accounts department I
3
just got the knowhow of the work. During the internship MS Excel helped me
a lot. By using my skills in Excel I created the reports in minimum possible
time. The technique that I used for this purpose was pivot table.
I learned many new concepts and skills that are as MS Excel’s related new
techniques, how reporting is performed, the software of Metro Power
Accounting, handling of checkbooks and maintaining the bank’s manual
register, issuing checks and performing their dispatch process, sales tax
payment concept and some little but important things.
I really feel that I have got very much during this internship. There is much
to learn in medium companies like Metro. So I suggest students try to get
internship in Metro.
4
ContentsThe organization 6
History and Background:..............................................................................6
Nature of the Organization........................................................................6
Group Systems & Technology Committee.................................................8
Management Committee...........................................................................8
Code of Corporate Governance.................................................................8
Products and Services:...............................................................................10
General Profile of the Company:.................................................................12
Vision of Metro:.......................................................................................12
Mission of Metro:.....................................................................................13
Metro’s Targets:......................................................................................13
The Business Principles of Metro Hi-Tech (Pvt) Ltd. Gujrat......................14
Automotive Industry:...............................................................................18
Business Volume:....................................................................................22
Number of employees:............................................................................22
Organizational Structure:...........................................................................23
Comments on Organizational Structure:....................................................24
Description of various Departments:..........................................................25
Finance & Accounting Departments:.......................................................25
Accounting system of the organization:..................................................32
Marketing and Sales Department:...........................................................33
Overall Appraisal and Problems:.................................................................36
Internal elements:...................................................................................37
External elements:..................................................................................42
Internship Activities: 45
Detail Description of work (on Weekly basis):............................................45
My first week (from May 25, 2009 to May 31, 2009):..............................45
5
My second week (from Jun 1, 2009 to Jun 7, 2009):................................46
My Third week (from Jun 8, 2009 to Jun 15, 2009):.................................47
My Fourth week (from Jun 15, 2009 to Jun 21, 2009):.............................49
My Fifth week (from Jun 22, 2009 to Jun 28, 2009):................................50
My Sixth and last week (from Jun 29, 2009 to Jul 4, 2009):.....................51
Managers with whom I associated:.............................................................53
Application of the knowledge/ skills learned during MBIT studies:.............56
MS Excel:.................................................................................................56
MS Word:.................................................................................................57
Bank Reconciliation:................................................................................58
MS GP Dynamics ERP:.............................................................................58
Accounting and Finance Concepts:.........................................................58
New things Learned:...................................................................................59
MS Excel’s learned things:.......................................................................59
The software of Metro Power Accounting:...............................................60
How reporting is performed:....................................................................60
Handling of checkbooks and maintaining the bank’s manual register:...60
Issuing checks and performing their dispatch process:...........................61
Sales tax payment concept:....................................................................61
Some little but important things:............................................................61
Summary and Recommendations: 62
Overall Summary:.......................................................................................62
Recommendation:......................................................................................64
For the Organization:...............................................................................64
For the IBIT:.............................................................................................65
For the students of IBIT:..........................................................................66
6
The organization
History and Background:
Metro Hi-Tech (pvt.) Ltd. was established by "YUNAS" Group of Industries in
1973, incorporated as a Private Limited Concern on 7th October 1985.
Begin with manufacturing of Electric Fans in Pakistan in the Brand name of
METRO, in different designs and sizes. It includes special varieties of Ceiling,
Pedestal, Exhaust, Double Action Bracket Fans, Table and Circumatic Fans
which display their professional expertise, skill and are equally renowned
locally and abroad. The Company has also started a new setup of
manufacturing of Household Appliances, which include METRO Motor Cycles,
Washing Machine, Gas and Electric-heater, Air Coolers and Geysers in
beautiful designs. Then it was divided into three units and a metro group of
companies was created under which there are now three companies, Metro
fans, Metro Motorbike Company, and the Metro Automotive parts. I entered
into the business of motorcycle in 2003.
Nature of the Organization
The Company is a Private Company within the meaning of Section 2(1) (28)
of the Ordinance, and accordingly:-
No invitation shall issue to the public to subscribe for any shares of the
Company.
7
The number of the members of the Company (exclusive of persons in the
employment of the Company) shall be limited to fifty, provided that purpose
of this provision, where two or more persons hold one or more shares in the
Company jointly, they shall be treated as a single member; and the right to
transfer the shares of the Company is restricted in mannered to the extent
herein appearing. Metro Quality Products have been awarded Certification
ISO- 9002:1Certified NO. Q-SC-5755 DT 5/ 4/ 2000 by DET Norske Veritas
(DNV).
The right to transfer the shares of the Company is restricted in
manner and to the extent herein appearing.
The initial capital of the Company is Rs. 4,500,000/ 45,000
ordinary shares of Rs. 100 each.
The shares shall be under the control of the Directors who may
allot or otherwise dispose of the same to such persons, on such
terms and conditions, and at such times, as the Directors think
fit.
To buy, sell, manufacture let on hire, repair, service, overhaul
alter any machinery, component parts, accessories, equipment
and fittings of all electrical and other mechanical equipment.
To invite investment from local and foreign sources and to
promote the establishment of new industries in Pakistan or any
part of the world.
8
Once at least in every year the account of the Company shall be examined
and the correctness of the profit and loss account and balance sheet
ascertained by Auditors and the provisions of the Ordinance in regard to
audit and the appointment and qualification of auditors shall be observed.
Group Systems & Technology Committee
The Group System and Technology Committee are responsible to provide an
insight towards the various technological aspects of information systems.
The objective of the Committee is to introduce leading edge technology and
IT initiative to automate information delivery and accessibility of data for
enhancement of time and cost efficiency.
Management Committee
The Management Committee acts at the operating level in an advisory
capacity to the CEO, providing recommendations relating to the business
and other corporate affairs. The Committee has responsibility for reviewing
and forwarding long-term plans, capital and expense Budget development
and stewardship of business plans. The committee is also responsible for
maintaining healthy environment within and outside the company through its
environment friendly products.
Code of Corporate Governance
The financial statements, prepared by the management of the company,
fairly present its state of affairs, the results of its operations, cash flows and
changes in equity. The company has maintained proper books of account.
9
Appropriate accounting policies have been consistently applied, except for
change as explained in note to the accounts, in preparation of financial
statements and accounting estimates are based on reasonable and prudent
judgment. International Accounting Standards, as applicable in Pakistan,
have been followed in preparation of financial statements. The system of
internal control is sound in design and has been effectively implemented and
monitored. The process of monitoring internal controls will continue as an
ongoing process with the objective to further strengthen the controls and
bring improvements in the system. There is no doubt about the company’s
ability to continue as a going concern.
There has been no material departure from the best practices of corporate
governance, as detailed in the listing regulations. A summary of key
operating and financial data of the company is annexed.
Information about taxes and levies is given in notes to the accounts.
The Company operates a contributory provident fund scheme for all
employees and defined benefit gratuity fund scheme for its
management/non-management employees on behalf of the Board of
Directors.
10
Products and Services:
The complete list with picture of the products of the Metro is given below:
1. Metro MR 70-Red , The most demanding product of Metro. Almost 80%
of sale is consisted of this bike.
2. Metro MR 70-Black
3. Metro MR 70-Blue
4. Metro MR 70-Blue
5. Metro MR 125-Red
11
6. Metro MR 125-Black
7. Metro-125’s Back Light and Front Light
8. Petrol Tank
9. Mobil Oil for Motorcycle
10. Some other are given in this poster:
12
General Profile of the Company:
Vision of Metro:
MEETING YOUR DREAMS… Quality is everything what we execute, Right first
time, on time, every time. WE INNOVATE NOT IMMITATE. We being quality
conscious are approved by following quality institutions:-
METRO Quality Products have been awarded Certification ISO-
9002:1994. Certificate No. Q-SC-5755 DT 5/4/2000 by DET
Norske Veritas (DNV).
Saudi Arabian Standard Organization (SASO) under International
Conformity Programme by Intertek Testing Services (Singapore)
Pte Ltd.
Pakistan Standard and Quality Control Authority, Standard
Development Centre (PSI-1).
Also Registered with E in C’s Branch, General Headquarters,
Rawalpindi (M.E.S.)
Enlisted as Manufacturers/Exporters in Engineering Development
Board (E.D.B.) Ministry of Industry, Government of Pakistan.
"We have met all the above quality certifications criteria due to our highly
qualified, experienced and devoted operational staff under the supervision of
professionals, supervisors & inspectors under secure working environments.
We are producing environmental friendly and energy saving products.
13
Mission of Metro:
The main goal of METRO, is to improve the level of customer service in Motor
Bikes, Electrical Fans and in Household Appliances Manufacturing.
Hence the operation of the delivery services and distribution Is.
professionally handled by the experienced staff. We believe in providing
fastest and efficient services to our clients backed by the State of Art
Manufacturing equipment and modern quality control systems. All these
things are our back-up power to achieve our targets and goals.
Our mission is to set our operations around your needs, building a one to one
relationship with each individual customer and tailoring our service
according to your requirements.
Metro’s Targets:
To be the No.1 automobile company in Pakistan.
To assumes leadership role in the technological advancement of
the industry and to achieve the highest level of quantitative
indigenization.
To offer high value, economical and qualitative solutions to
address the commuting needs of a diverse range of customers.
To seek long –term and good relations with our suppliers and
dealers with fair, honest and mutually profitable dealings.
To be a totally customer oriented company and to achieve Total
Customer Satisfaction.
14
To create a work environment, which motivates, recognizes and
rewards achievements at all levels of the organization.
To produce environment friendly vehicles.
To be a contributing corporate citizen for the betterment of
society, and to exhibit a socially responsible behavior.
The Business Principles of Metro Hi-Tech (Pvt) Ltd. Gujrat
Corporate philosophy:
Maintaining a global viewpoint, Metro is dedicated to supplying
products of the highest quality yet at a reasonable price for
worldwide customer satisfaction.
Dynamic manufacturing and marketing of prestigious products to
the entire satisfaction of customers.
Create ideal working environment for continuous development of
product and personnel.
Provide adequate return to share holders and fulfill corporate
civic obligations.
Management policy:
Proceed always with ambition and youthfulness.
Respect sound theory, develop fresh ideas, and make the most
effective use of time.
Enjoy your work and encourage open communications.
Strive constantly for a harmonious flow of work.
15
Be ever mindful of the value of research and endeavor.
Respect for all – man has priority over others.
Man is the key in controlling i.e. machines, methods and
materials.
Follow 3S spirit i.e. small, smart and speed.
Believe in 3A “Metro on Approach” i.e. be on Actual Spot, look at
the Actual Spot and confront the Actual Situation.
Be a good corporate citizen; assume a responsible role in
community.
Priority standards of conduct:
Safety: There can be no production without safety.
Quality: To achieve the No.1 customer satisfaction, Metro is
dedicated to supply the prestigious products of its highest
quality, through our smart team work.
Productivity: With safety and quality each of it will strive to Excel
the performance in all fields of its activities i.e. Production,
Marketing & Planning, After Sales Service, Finance, Logistics &
Imports and Human Resource & Administration etc.
Human resource and succession plan:
Human Resource Policy is to hire young, fresh, energetic and active
associates to meet the existing and future workforce requirements and
providing its associates maximum opportunities for internal mobility
16
through personal training and development to enable them to take
higher positions. Human Resource Division has to have succession plan
for each key job/area to make sure the continuity of operations in the
relevant division and to fill the temporary/permanent vacancy.
Quality policy:
To achieve the No.1 customer satisfaction, Metro is dedicated to
supplying the prestigious products of its highest quality through its
smart team work defined by the regulatory parameters & continually
improving its strategies and goals for better performance.
Environment policy:
Metro Hi- Tech (Pvt) Ltd Gujrat (Pakistan), being responsible
member of the society considers the preservation of the global
environment as a crucial concern. Metro’s environmental
philosophy is firmly based on the following guidelines:
Recognize the impacts of the significant aspects on the
environment resulting from activities, products and services;
Formulate objectives and targets to control the effects of
activities on local environment as for as technically feasible;
Operate in compliance with relevant environmental laws,
regulations and other requirements that apply to its activities;
Create environment friendly attitude among associates;
17
Commitment to continual improvement of the environmental
performance and review of the environmental management
system to ensure its suitability, adequacy and effectiveness.
Safety, health and environment;
Metro Hi- Tech (Pvt) Ltd Gujrat (Pakistan) conducts its business
responsibly and in a way to make sure Health, Safety and
protection from Environmental aspects of its associates and the
society. Metro implements and maintains the programs that
provide reasonable assurance that the business will do the
following:
To comply with all applicable government and internal health,
safety and environmental requirements.
Design facilities and conduct operations in a way that avoids risk
to human health, safety and the environment.
To examine and communicate the known hazards of operations
with relevant health, safety and environmental protection
information to potentially affected persons.
Operating Principles:
Always keep the deadline.
Never make excuses.
Teamwork.
18
Automotive Industry:
Pakistan is an emerging market for automobiles and automotive parts offers
immense business and investment opportunities. The total contribution of
Auto industry to GDP in 2007 is 2.8% which is likely to increase up to 5.6% in
the next 5 years. Total gross sales of automobiles in Pakistan were Rs.214
billion in 2006-07 or $2.67 billion. The industry paid Rs.63 billion cumulative
taxes in 2007-08 that the government has levied on automobiles. There are
500 auto-parts manufacturers in the country that supply parts to original
equipment manufacturers (PAMA members). Auto sector presently,
contributes 16% to the manufacturing sector which also is expected to
increase 25% in the next 7 years, as compared to 6.7 percent during 2001-
02.Vehicles’ manufacturers directly employ over 192,000 people with a total
investment of over $ 1.5 billion. Currently, there are around 82 vehicles’
assemblers in the industry producing passengers cars, light commercial
vehicles, trucks, buses, tractors and 2/3 wheelers. The auto policy is geared
up to make an investment of $ 4.09 billion in the next five years thus,
making a target of half a million cars per annum achievable.
19
Government of Pakistan had undertaken two major initiatives in the form of
National Trade Corridor Improvement Program (NTCIP) and Auto Industry
Development Program (AIDP) for the development of the automotive
industry in Pakistan.
Engineering Development Board (EDB) is actively implementing the AIDP to
increase the GDP contribution of the automotive sector to 5.6%, boost car
production capacity to half a million units as well as attract an investment of
US$ 3 billion and reach an auto export target of US$ 650 million.
Automotive engineering is a driving force of large scale manufacturing,
contributing US$ 3.6 billion to the national economy and engaging over
192,000 people in direct employment.
The Auto parts manufacturing is $ 0.96 billion per annum. The demand for
auto parts is highest in the motor cycle industry which is 60%, then is for
cars which constitutes to 22% and the rest 18% is consumed by trucks,
buses & tractors. This demand is met by Imports which caters 22% while the
remaining 78% is supplied by the local manufacturers.
Due to the increase in demand for sophisticated machinery, the government
has allowed duty free import of raw material, sub components, components
assemblies for manufacturers & assemblers. Total import bill of machinery
20
stands at $2.195 billion in the current fiscal year of 2007-08 which is 12.77%
higher than that of the preceding year.
The impressive growth in the machine tools and automation sector is directly
proportional to the growth of the automotive industry which has become the
fastest growing industry of Pakistan and contributes $3.6 billion annually to
the country’s GDP.
The aftermarket for spares has also witnessed immense expansion over the
same period, with imported parts playing an important role in meeting local
demand. The spare parts market is given further impetus by a total vehicle
population of approximately 5.4 million
Pakistan has the second highest number of CNG-powered vehicles in the
world with more than 1.55 million cars and passenger buses, constituting
24% of total vehicles in Pakistan with improved fuel efficiency and
conforming to the latest environment regulations.
VISION 2012: The Future of Pakistan Auto Industry
Product 2007-8 VISION 2012
Cars (nos.) 164,710 500,000
2 wheelers 1.06 million 1.7 million
Investment (Billion) 98 225
Contribution to GDP (%) 2.8 5.6
Contribution to manufacturing
sector (%)
16 25
21
Direct Employment 192,000 500,000
Gross sales turn over (Billion) 214 600
Decline in Sales and Revenue
Unfortunately, the recent downward trend in auto sales (cars + LCVs)
continued as auto sales stood at 27,034 units for July-September 2008,
showing a decline of 44 percent year-on-year, the data released by Pakistan
Automobiles Manufacturers Association (PAMA) shows.
Automobile grew from 2001-2007, the industry and the government of
Pakistan fixed a target of over half million units’ production by the year
2011-12 that now seems out of reach. The industry slightly fell short to
achieve the targeted productions in 2006-07 when 1,95,688 cars were
manufactured against a target of 2,26,620 units. However, there was some
growth in production that year. In 2007-08 the production declined to
1,87,634 units against a projected target of 2,66,543 units. In the current
fiscal year they said the production is expected to decline to 1,50,107 units
that are half the projected target of 3,13,486 units.
Despite an additional levy of 5 per cent excise duty, the revenues from
automobile sector would decline by over 25 per cent this year due to
declining demand. The industry paid Rs.63 billion cumulative taxes that the
government has levied on automobiles. This year, despite additional duty the
sector would hardly contribute Rs50 billion in the national exchequer.
22
Business Volume:
The sales of the company, for the period 2007-2008, were more than 17000
units of motorbikes. And in 2008-2009 the sale has reached to more than
22000 units of motorcycles. In term of money if exclude the sales tax then
this amount Rs. 581 million in 2007-2008 and in 2008-2009 it may reach Rs.
752 million.
Number of employees:
The Total number of employees working in Metro Hi- Tech (Pvt) Ltd. Gujrat
on 30th June 2005 is 700 including managers, executives & subordinates.
23
24
Organizational Structure:
25
Comments on Organizational Structure:
The structure of the Metro is Functional. Each department works
independently but still there are dependencies on each other, e.g. Finance
department has keen link with the sale and purchase departments. Also the
work of Finance and Accounts department is interlinked.
The payroll system is the hands of HR but the entries of salaries are done by
the Accounts department.
Production department is dependent on the Purchase department and
imports department.
In the below there are the names of department heads:
CEO Mr. Imtiaz Ahmed
COO(Chief Operating Officer) Mr. Sajid Ali Bodla
GM Finance Mr. Aamir Khalid
Head of Sales and Marketing Mr. Mahmood Ali Mir
HR and Admin. Head Mr. Anwer Murad
Manager Production Mr. Imtiaz Hussain
Accounts Manager Mr. Abdul Rehman Mir
Head of Services and Development Mr. Imran Saeed
Procurement Manager Mr. Kashif Javed
Manager Imports Mr. Zamir Abbas
26
Description of various Departments:
Finance & Accounting Departments:
The relationship between finance & accounting, conceptually speaking, has
two dimensions; (i) they are closely related to the extent that accounting is
an important input in financial decision-making; and (ii) they are key
difference in viewpoints between them.
Accounting function is a necessary input into the finance function. That is, a
sub functions of finance. Accounting generates information/data relating to
operations/activities of the firm. The end-product of accounting constitutes
financial statements such as the balance sheet, the income statement (profit
& loss account) and the statement of changes in financial position (sources
and uses of funds statement). The information contained in these statements
and reports assists financial managers in assessing the past performance
and future directions of the firm and in meeting certain legal obligations,
such as payment of taxes and so on. Thus, accounting and finance are
functionally closely related.
But there are key difference between finance and accounting. The first
difference relates to the treatment of funds while the second relates to
decision-making.
27
Treatment of Funds:
The viewpoint of accounting relating to the funds of the firm is different from
that of finance. The measurement of funds (income & expenses) in
accounting is based on the accrual principle/ system. For instance, revenue
is recognized at the point of sale and not when collected. Similarly, expenses
are recognized when they are incurred rather than when actually paid. The
accrual-based accounting data do not reflect fully the financial
circumstances of the firm. A firm may be quite profitable in the accounting
sense in that it has earned profit (sales less expenses) but it may not be able
to meet current obligations owing to shortage of liquidity due to uncollectible
receivables for instance. Such a firm will not survive regardless of its levels
of profits.
The viewpoint of finance relating to the treatment of funds is based on cash
flows. The revenues are recognized only when actually received in cash (i.e.
cash inflow) and expenses are recognized on actual payment (i.e. cash
outflow). This is so because the financial manager is concerned with
maintaining solvency of the firm by providing the cash flows necessary to
satisfy its obligations and acquiring and financing the assets needed to
achieve the goals of the firm. Thus, cash flow-based returns help financial
managers avoid insolvency and achieve the desired financial goals.
28
Decision making:
Finance and accounting also differ in respect of their purposes. The purpose
of accounting is collection and presentation of financial data. It provides
consistently developed and easily interpreted data on the past, present and
future operations of the fi8rm. The financial manager uses such data for
financial decision making. It does not mean that accountants never make
decisions or financial managers never collect data. But the primary focus of
the functions of accountants is on collection and presentation of data while
the financial manager's major responsibility relates to financial planning,
controlling and decision making. Thus, in a sense, finance begins where
accounting ends.
Finance and Economics:
The relevance of economics to financial management can be described in
the light of the two broad areas of economics: macroeconomics and
microeconomics.
Macroeconomics is concerned with the overall institutional environment in
which the firm operates. It looks at the economy as a whole.
Macroeconomics is concerned with the institutional structure of the banking
system, money and capital markets, financial intermediaries, monetary,
credit and fiscal policies and economic policies dealing with, and controlling
level of, activity within an economy. Since Business firms operate in the
macroeconomic environment, it is important for financial managers to
29
understand the broad economic environment, specifically, they should (1)
recognize and understand how monetary policy affects the cost and the
availability of funds; (2) be versed in fiscal policy and its effects on the
economy; (3) be aware of the various financial institutions/ financing outlets;
and (4) understand the consequences of various levels of economic activity
and changes in economic policy for their decision environment and so on.
Microeconomics deals with the economic decisions of individuals and
organizations. It concerns itself with the determination of optimal operating
strategies. In other word, the theories of microeconomics provide for
effective operations of business firms. They are concerned with defining
actions that will permit the firms to achieve success. The concepts and
theories of microeconomics relevant to financial management are, for
instance, those involving (1) supply and demand relationships and profit
maximization strategies, (2) issues related to the mix of productive factors,
‘optimal’ sales level and product pricing strategies, (3) measurement of
utility preference, risk and the determination of value, and (4) the rationale
of depreciating assets. In addition, the primary principle that applies in
financial management is marginal analysis; it suggests that financial
decisions should be made on the basis of comparison of marginal revenue
and marginal cost. Such decisions will lead to an increase in profits of the
firm. It is therefore important that financial managers must be familiar with
basic microeconomics.
30
Thus, knowledge of economics is necessary for a financial manager to
understand both the financial environment and the decision theories which
underlie contemporary financial management. He should familiar with these
areas of economics. Macroeconomics provides the financial manager with an
insight into policies by which economic activity is controlled. Operating
within that institutional framework, the financial manager draws on
microeconomic theories of the operations of firms and profit maximization.
Finance and Other Related Disciplines
Apart from economics and accounting, finance also draws-for its key day-to-
day decisions-on supportive disciplines such as marketing, production and
quantitative methods. For instance, financial managers should consider the
impact of new product development and promotion plans made in the
marketing area since their plans will require capital outlays and have an
impact on the projected cash flows. Similarly, changes in the production
process may necessitate capital expenditures which the financial managers
must evaluate and finance. And, finally, the tools of analysis developed in
the quantitative methods area are helpful in analyzing complex financial
management problems.
The marketing, production and quantitative methods are, thus only indirectly
related to day-to-day decision making by financial managers and are
supportive in nature while economics and accounting are the primary
disciplines on which the financial manager draws substantially.
Support
Resulting
Owner’s wealth
maximization
31
The Relationship between financial management and supportive disciplines
is depicted in following fig.
Financial Decision Areas:
Functions of the Finance Department:
These are the following main function of the finance department.
Prepare the financial statement on monthly basis, quarterly basis and
annually basis.
Analyzing the financial statement.
Prepare the production Report.
Budgeting
Maintain in minimum level of cash to meet the daily transaction.
Prepare the bank reconciliation statement.
Calculate the working capital requirements.
Prepare the facility report.
Investment Analysis
Working Capital
Management
Sources & Cost of Funds
Determination of Capital
Analysis of Risk &
Returns
Primary
Disciplines
Macro
Economics
Micro EconomicsOther Related
Disciplines
Marketing
Production
Quantitative Methods
32
Prepare the projected income statement, balance sheet and cash flow
statement.
Maintain the debit and debit credit balance of the customers
Deal with the sales tax and income tax.
Keep the record for all the types of payments.
Accounting system of the organization:
The accounting procedures describe to this point may be summarized in
eight steps, as follows:
Journalize transactions: enter all transactions in the general
journal, thus creating a chronological record of events
Post to ledger accounts: post debits and credits from the
general journal to the proper ledger accounts, thus creating a
record classified by accounts.
Preparing a trial balance: prove the equality of debits and
credits in the ledger.
Make end-of-period adjustments: draft adjusting entries in
the general journal, and post to ledger accounts. Thus far we
33
have illustrated only one type of adjustment: the recording of
depreciation at the end of the period.
Prepare an adjustment trial balance: prove again the
equality of debits and credits in the ledger.
Prepare financial statements and appropriate disclosures:
an income statement shows the results of operations for the
period. A statement of owner's equity shows the changes in
owner's equity during the period and the ending balance. A
balance sheet shows the financial position of the business at the
end of the period. Financial statements should be accompanied
by notes disclosing any facts necessary for the proper
interpretation of those statements.
Journalize and post closing entries: the closing entries clear
the revenue, expense, and drawing accounts, making them
ready for recording the events of the next accounting period. The
closing entries also transfer the net income or loss of the
completed period to the owner's capital account.
Prepare an after-closing trial balance: this step ensures that
the ledger remains in balance after posting of the closing entries.
The sequence of procedures performed in computer-based systems is
essentially the same as in manual systems. Of course, the computer is
programmed to perform a number of these steps automatically.
34
Marketing and Sales Department:
Metro's marketing strength over the years has been the ability of its team
and the different functions to act in unison. The year saw improvement in all
areas of marketing. The Dealers Development initiative, that currently forms
the backbone of the marketing effort, has almost matured with 300
dealerships graduating. This means that the company now has more
dealerships that provide full range of services like Sales, Service, Spare
Parts, Special Sales (Credit Sales) and Second Hand Exchange than the
traditional dealerships that offer only selected services. As expected, the
dealership concept is successfully generating the extra brand equity that
differentiates Metro's products from the copy makers to create a distinct
value premium. The presence of the dealerships has resulted in improved
sales in relatively weak or unfocused areas. To supplement the activities, the
company also re-initiated an invigorating advertising campaign on the
electronic media. The advertisements were instrumental in reinforcing
Metro's quality and brand in the consumer mind through the very popular
“DHOOM MACHAY SARAKOON PAR” & “METRO KA VADAH PETROL
KAM SAFAR ZIYADAH”- slogan. In times of excess demand, the recall
value of the ads has been so powerful that all over the country customers
are willing to wait for the company's product rather than purchase an inferior
one. It is anticipated that this media campaign will provide the base to
launch Metro's next push for market growth. As Metro prepares to shift
another gear to fulfill its dream of "class to mass" , media advertisements on
35
TV, Newspapers and radio will play a distinct role in projecting the company's
message. Metro is reinforcing efforts to serve its loyal customers even at
the cost of lower margins. This the company views as an investment rather
than a cost! The Dealer contest remained a pivotal activity for the Service
Department and proved a resounding success. Company is achieving more
than 90 percent target of workshop development was achieved through
enthusiastic participation by the dealers. Critical areas like workshop
development, effectiveness of warranty system, better tools and equipment
and service management were improved markedly as a result of this
exercise. The competition culminated in Lahore City (Head of the Marketing
department -Metro Motorbike Company 23, H-3 Block, Johar Town
Lahore) resulting in improved motivation for the Dealerships. The 4-stroke
mechanic training activity has been the main stay of the Service
Department's efforts over the years. Several mechanics are trained every
year in three day extensive training programs. Since a great deal of the
original objective has been achieved, from now on more selected training will
be arranged that will be dovetailed with the overall marketing strategies of
the company. Metro has always been at the forefront in promoting
Customer Care activities. Metro has consistently promoted environment
consciousness and safety-riding activities through its Customer Education
Programs. A new initiative is now being envisaged as the company roles out
a nationwide Safety Riding Program. In fact, the program has already come
out of the planning stage during the year and made a soft start through
36
training of the Metro Chief Instructors by an overseas trainer. One hundred
& fifteen service dealers and Metro staff have been trained. They, in turn,
will train the company's customers as part of the new Customer Care
program. Metro is also in the process of establishing a Safety Riding School
to centralize the effort on a sustained basis.
37
Overall Appraisal and Problems:
As we all know that the short fall in production of any company is a very
serious matter, especially for the companies whose ultimate aim is to earn
profit. A company continuously tries to find ways to increase its sale day by
day. So the sales will enhance only when then there is an adequate amount
of product is producing in the factory or any other production area. Any fault
on the production side can influence the sale badly. Unfortunately the same
problem is also present in our scenario and we have to find the possible
solutions.
As we all know being a student of MBIT and specially a student of Prof.
Mansoor Mahmood Ashiq, very well about the concept of SWOT analysis. In
SWOT analysis we all know that strength and weaknesses are the internal
controllable factors. In case of shortfall in production we should firstly
analyze the internal controllable elements because we can control them,
then the outer uncontrollable element.
38
S =
W =
O =
T =
Internal elements:
As we all know that strength and weaknesses these two are included in the
internal controllable elements. In this we study the concept of FIVE M’s (5
M’s). These M’s are as follows:
M = Men
M = Money
M = Machinery
M = Material
M = Method
INTERNAL ELEMENTS
EXTERNAL ELEMENTS
39
Now we will assume that the main two factors which are causing this
problem of low production are ‘MEN’ and ‘METHOD’ and the other factors
are working according to the planning and they are not playing any role in
the shortfall of production. But we will just slightly touch all of them.
Weaknesses:
MEN
Brain drain: It means that the employees are leaving the jobs, so that
is why there is a lack of experienced employees in the organization,
which leads to a shortfall in production.
Awkward working hours: The working hours for the labor are not
right and accurate. The working hours are so much awkward that they
labor force feels so much fatigueness and exertion, after continuously
working. There are no refreshing means available for the labor force in
order to remove their working exhaustness. There are continuously
working hours and the labor has not been provided any suitable span
of time of refreshment.
No up-to-date training of employees: There are no proper
arrangements for the up-to-date trainings of employees, both at
managerial and non-managerial level. The employees are working
along with their concise and conservative knowledge. There are no
refresher courses for their training.
40
Frequent labor conflicts: There are frequent conflicts among the
laborers which causes stoppage of work and which ultimately lead to
shortfall in production.
► Misuse of authority: The authorities assigned to the workers
are being misused by them. Perhaps the employees are using
the company’s resources for their own interest and misusing the
authority assigned to them.
► Lack of reward and appreciation/skill based pay: There is a
lack of reward and proper incentives for the workers. The
employees working more efficiently and effectively are receiving
the same rewards as the others. These efficient employees are
also not obliged with some appreciation.
► No co-ordination among employees: There is a lack of co-
ordination among employees. Employees are not in well
exchanging their ideas, methods of production and their skill
among each other so that their ideas are reserved to only a
single person and the whole system is not enjoying it.
► Incorrect assignment of work: There is an incorrect
assignment of work in the organization. The jobs assigned to the
workers do not match with their skills, mental as well as physical
capabilities, which ultimately lead to short fall in production.
► Disturbance caused by the labor unions: Labor unions are
continuously disturbing the whole environment of organization,
41
by raising strikes and stopping the production. So this ultimately
leads to shortfall in production.
► Satisfying behavior: The employees have adopted the
satisfying behavior due to which they are not working as
planning, and are just deceiving the management.
There are also so many points but due to limitation of the scenario we are
just giving their names which are as follows:
Partial behavior of manager
Unskilled labor
No direct communication
Lack of labor dignity
Lack of the efficiency/effectiveness
METHODS:
Methods relates to the techniques and skills used in the business. Methods
play a vital role in the success or failure of any business/organization. These
are the methods who distinguish one organization from other in production,
marketing, sale etc. according to our selection there is some fault in the
methods of company which is causing shortfall in production. The main
postulates are as follows:
Conservative and traditional methods of production: the
methods and techniques which are being used by the company
42
are so much obsolete and traditional they are imposing a bad
effect on the production. The company is not acquiring the
changing techniques in business and the day to day
technological advancement in the methods of production.
Lack of bench marking: the term bench marking refers to the
field trips in order to learn from some other organization about
how to produce something cheaper and better.
Lack of virtual management training: there is no availability
of virtual management training, which means that to train by
creating an artificial environment. The managers are not
provided such type of trainings and refresher courses in order to
make them capable of coping with day to day problems
regarding production.
Ignorance about scientific methods: there is no familiarity
with scientific methods and all the works are going on
haphazardly and without any well organized manner.
Strengths:
Brand Name: Metro has a good reputation in Pakistan due to its
beautiful design of Motorcycle and after sale service.
Potential Dealers: Metro has a good devoted pool of dealers.
ISO-9001 Certification: Metro has got ISO 9001 certification for
its products.
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Good Top Management: The top management is highly
potential, hard working and well experienced.
Bonus system for Workers and Dealers: Metro has
incentives for dealers and bonuses for workers that lead to
motivation of both parties.
Customers are Satisfied.
External elements:
Opportunities:
Huge Demand of Auto mobiles: Pakistan has a big middle
class so there is a huge demand of motorcycles.
Still many areas to cover: Metro has no setup in Baluchistan,
many areas of NWFP and some areas of Punjab and Sindh. Metro
can go these areas and can increase its sales.
Threats:
We assume that all the other factors do not affect the production in company
except the factors which we mentioned below. There explanations are as
follows.
Competitors: Metro is facing a tough competition from the
competitors. There are two types of competitors for the Metro
one of Japanese technology holder and the other having Chinese.
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Metro is itself Chinese so it considers other Chinese technology
holder as threatening competitors. So it is coping with them by
good marketing and after sale services.
Electricity Problems: This is a big threat for all the businesses
nowadays in Pakistan as the Metro is also facing this problem To
cope with it they are currently using generators but interval
between switching the mode of energy costs the company a lot.
Suppliers: Metro is more dependent on suppliers so there is a
big problem if suppliers try to get their requirements fulfilled on
their conditions.
Inflation: The inflation rate now in Pakistan is at its top people
have not enough money to spend on basic needs rather to
purchase a motor bike. The inflation has already reduces the
demand for motorcycle industry in Pakistan.
Interest rate: Since more of the businesses in Pakistan get
debts from the banks but the interest rates are very high in
current situation, so in case of default company can face trouble.
Political factors: political factors can influence as under:
► Political instability: due to political instability the
organization has no surety of its existence that whether
the organization will survive in the market or not. That’s
why they reduce their production.
45
► Political influence: sometimes due to some political
influence some incompetent persons are hired who do not
know about the work and cannot give the results as
planned.
► Instigating labor unions: some political parties instigate
the labor unions due to their personal clash with the
company.
Death of a partner: partnership is the main deed in the
formation of company. Partners are just like the arms of each
other, who balance each other. According to our selected
scenario there may be a death of one partner which ultimately
causes a delay in making some important business decisions.
There may be certain interruption in work which ultimately
causes shortfall in production.
Electricity problem: there is certain electricity fluctuations
which caused the stoppage of work at certain instants.
Death of employees: certain experienced employees have
died in the assumed scenario. So for hiring new employee and
give training to them took a lot of time, which ultimately leads to
shortfall in production.
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Internship Activities:
Detail Description of work (on Weekly basis):
My first week (from May 25, 2009 to May 31, 2009):
My first week of internship, that started from May 25, 2009, I was assigned to
perform data entry. This data entry was to write figures from their old
software to their new software named Power Accounting. It was required
because they have to create a report of 2007-2008 sales report, but in the
middle of that period thaw had changed their software. Now the half of the
data for the period of 2007-2009 was on the old software and other half was
on the new software. They wanted to get the data of that fiscal year on the
same software so they assigned of to do that. One of their Finance officer Mr.
Usman Riaz told of how to perform this function, after it I did it on my own
some time he got the problem e.g. Query problem, Sign in problem as
electricity forced us to sign in after every hour. This thing helped of a lot to
understand their sales data that how they record, present it to top
management as after this data entry I created various types of reports. The
problem that faced while entering the data on the software was when I had
to write the data fetching query on their old software again and again, this
thing consumed a lot of time.
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One thing in this data was that I had to enter the summary of the sale by
dealer and month wise in their software not the detail sold data, he I had to
do that in detail it would not possible to do that in the whole duration of the
internship.
My second week (from Jun 1, 2009 to Jun 7, 2009):
My second week that started from 1st of June 2009, its work is divide into
two parts. For the first three day I performed the same tasks that I did in the
first week. In the first week it was not possible to finish the data entry as
after each hour the electricity problem occurred. So in the middle of the
second week I completed the data entry work. So in the remaining three
days I learned how they do cash receipt entry. In their software, there is a
cash receipt entry box. They foot perform this entry unless the cash is
credited in the company’s account in the respective bank. In this entry
you have to write entry date, amount receipt type i.e. Cash, check, online
transfer or Demand draft, then the receipt amount. Below this box, we write
the bank name in debit side and dealer's name in the credit side. This entry
is then saved and then posted by the assistant finance manager.
More over they had a register in which the finance department stores the
vouchers of daily cash receipts that is received from the dealers. On these
vouchers they write against each receipt that towards which bank account of
the company this receipt has been deposited. There one finance officer had
write it before for the year 2008-2009 but with a ball point pen. I was asked
48
to write it in a new register/folder with a lead pencil. In the remaining three
days I did this work. This thing helped of that how they create the daily
receipt's record. This register is a complete storage of the company's cash
receipt from the dealers of motorcycles. On their vouchers, I had to write the
amount clearing date, bank name with account number's last three or four
digits. In the mean while, I performed punching of papers, photo copying and
creating a new folder for storing the vouchers.
My Third week (from Jun 8, 2009 to Jun 15, 2009):
My third week was very interesting. I had performed three types of tasks in
this week.
1. First task that I did in this week was to write discount rates on the
Excel against a particular dealer. This Excel sheet contained a column
of dealer name, city, quantity sold, rate per unit, total amount, then a
column of discount rate. The ending column gave the total amount of
invoice excluding the discount rate. Then from using this data they had
to enter the transactions of invoices in their software. This thing
showed me that how to handle the discount and how to use this
discount to save the tax. Further advanced tasks related to this area I
performed later on, and I will give its detail in that paragraph.
2. I sat a few days with the person who performs the tasks of bank
reconciliation, maintaining of bank register and handling the check
leaves. K learned all these things from him.
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First of all he have me the finished check books to paste them on
the white pages in order to keep them in a folder. These leaves
have to be parted in a sequence. The cancelled checks must
have the printed check number of other half the check, on the
front of the leaf. After parting these pages they write the bank
name, account number on the empty place above the leaves.
Then after punching them i put them in a folder. Almost 3 leaves
of check book parted in note time. The second thing he taught of
was how to maintain the register. To maintain it on daily basis
before leaving the office this register have to be updated by the
finance person. When a new check book is brought first of all its
check number is entered in the register. Then on daily basis the
payment against each check are written against each check
number with amount, payee's name. He check is cancelled then
with a red pen it is written in front of the check number that it is
cancelled. Also from the daily bank statement a check, which is
cleared from the bank for against the payment, is given, the
clearing date is written against the clearing check.
Then the third he taught me how to how to perform the bank
reconciliation. For this purpose he wrote the monthly bank
statements on the Excel sheet. Then the bank register from their
software was converted into the Excel. First of all he took the
bank statements each payment and then tallies it with the
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company's register. Then he performed the same function with
the company’s own register of that bank account. Now the
amounts that did not tally. He performed some function e.g.
whether check is cancelled, or not cleared, or returned by the
bank etc.
3. The third task that I performed in my third week of internship was to
create a report of sale from July 2008 to April 2009. This report would
contain the quantity, invoice amount, sales tax amount on that invoice,
Special excise duty and the sum of all. The report format was dealers
name on left side in one column then their city. On the first column
there were the months in order. Now I had to write the dealer wise
monthly invoice’s amount that calculates the taxes and invoice’s net.
For my ease I used the technique of pivot table and I created this
report in just one hour and surprised everyone in the office, as on one
of them knew the pivot table before. They used the simple copy paste
procedure for this purpose. Later on I prepare another similar type of
report that contains the discount effect.
4. During this week I also learned the technique of subtotals.
My Fourth week (from Jun 15, 2009 to Jun 21, 2009):
In the fourth week of my internship I performed multi tasks:
1. As I mentioned above I learned things about bank reconciliation, leaf
handling and register maintaining so I did these things in things on my
51
own. First of all I entered the bank statement of two banks in the excel
sheet. This function is performed in order to locate an amount and
check number easily. Then I converted the data of those bank accounts
from the software into Excel format. Then I have to tally both bank
statement and the bank register of company. First of all I searched the
amounts of bank statements in the company’s ledger by using three
parameters the amount, check number and date. If an amount was not
available in the company’s ledger I marked it. Then after completing
this function I carried on the same procedure with the company’s
ledger and determined which amount is not available in the bank
statement, and I marked them. After doing this I had a raw report that
which amount is missing in either side. So I made a neat report and
then by using this data I made the bank reconciliation statement.
2. Then this whole week I maintained the register of the bank accounts, I
wrote the amount against a check, its date, payee’s name and etc.
Also from the daily bank statement I found which check paid has been
cleared, I wrote its clearing date against its check number in the
register.
3. The in this week I pasted almost six finished check book on the white
papers.
4. Then I wrote several checks in this week. All these checks were to the
venders and were cross checks. I wrote the vender name, date,
amount and then stamped it with company’s stamp and also stamped
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it with “payee’s account only”. The second task was to photo copy it so
I did this thing.
5. After the writing of the check I was I asked to write the addresses of
the corresponding venders on the envelop and then insert these
checks into the these envelops. All this work of check writing and
dispatching done by me, was also monitored by my super visor Mr.
Abdul Rehman.
My Fifth week (from Jun 22, 2009 to Jun 28, 2009):
During this week I was given the work for some entries sales and cash
receipt related. And I also made a report that contains the sales. I will discuss
these tasks in detail below:
First of all I created the summary report of whole year from July 2008
to April 2009. I had created a report of similar type in previous weeks
but the difference between this report and that report is that it
contained the discount t as well. I once again used the technique of
pivot table to create this report. But there was a problem I had to
insert the discounts against each invoice. And there were more than
5000 invoice records in the excel sheet. And some dealers are
provided the discount and some are not. Moreover the discount rates
were different for each of dealers. To handle this situation I used the
vlookup formula. Under this formula, I insert the dealer’s name their
discount rate and then by using the formula I interlinked these two
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sheets, in less than a minute there discount rates against each of the
dealer. Then I used the same procedure as I have written above.
The second major work I did this week was merging the discount rate
in the sales invoices. First of all I was asked to edit the sales tax
invoices so I did. Then the invoices including the discount were created
then by using this discount rate I entered these values in the software
in order to adjust the dealer’s ledger.
As in the previous week I did write the checks and dispatched them the
same thing I did in this week as well.
My Sixth and last week (from Jun 29, 2009 to Jul 4, 2009):
This week I spend with the Accounts department. The first two days I sat with
the accountant Mr. Atif Butt. I examined how he performs the journal
voucher entries. His basic work was to perform adjusting entries of utility
bills, interest expenses, salaries etc. His work was very simple if you the
chart of account of the Metro and also the concept of journal entries.
Then in the second two days I spend with person who deals with the taxes.
He told me his work about taxes that how he calculates the input tax and out
tax and how he perform the entries in the FBR’s website against the
company’s account. His work was also to communicate with venders for the
sales tax purposes, so he often wrote letter to them, during work with him I
performed the technique of mail merge in MS Word.
54
Then in later two days I got the knowhow of the work of the person who
manage the purchases. Moreover I make conversation with assistant
Accounts manager who told me about his job that he has to perform the
posting of all journal voucher entries.
55
Managers with whom I associated:
My supervisor was Mr. Abdul Rehman who was Assistant Finance Manager in
Metro. More over Finance Manager is Mr. Amir Khalid. I shall discuss both the
persons.
Mr. Abdul Rehman:
According to me the management style of Mr. Abdul Rehman is Paternalistic.
A form that is also essentially dictatorial, however the decisions tend to be in
the best interests of the employees rather than the business. A good
example of this would be David Brent or Michael Scott running the business
in the fictional television shows The Office. The leader explains most
decisions to the employees and ensures that their social and leisure needs
are always met. This can help balance out the lack of worker motivation
caused by an autocratic management style. Feedback is again generally
downward; however feedback to the management will occur in order for the
employees to be kept happy. This style can be highly advantageous, and can
engender loyalty from the employees, leading to a lower labor turnover,
thanks to the emphasis on social needs. It shares similar disadvantages to an
authoritarian style; employees becoming dependent on the leader, and if the
wrong decisions are made, then all employees may become dissatisfied with
the leader. The leader always leads them into brushing the floor.
Stress: According to me some stresses that he faced are as below:
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Role demands: His job is to issue payments to venders and organize the
receipts from the dealers. This creates stress situation for him whenever to
pay the payments and on time delivery of these payments. Moreover there is
no chance for him to be promoted on the higher position so it is another
stress for him. Some time he also has to perform some work of his
subordinate or colleague.
Task demands: His task is very sensitive; he issues the checks so he can be
easily trapped for a fraud.
Conflicts: There is conflict that arises some time when the owner (as it
private limited company) asks him to create a withdraw check but he is
bound to not issue without the written permission of Finance Manager. So it
should be called communication problem.
Appreciation: In metro for executive level employees there is no bonuses
and over times, but they are given annual increment and verbal praise.
Now I shall discuss Mr. Aamir Khalid:
Mr. Aamir is GM Finance in the Metro. According to me his management is
Autocratic. An Autocratic or authoritarian manager makes all the decisions,
keeping the information and decision making among the senior
management. Objectives and tasks are set and the workforce is expected to
do exactly as required. The communication involved with this method is
mainly downward, from the leader to the subordinate, critics such as Elton
57
Mayo have argued that this method can lead to a decrease in motivation
from the employee's point of view. The main advantage of this style is that
the direction of the business will remain constant, and the decisions will all
be similar, this in turn can project an image of a confident, well managed
business. On the other hand, subordinates may become dependent upon the
leaders and supervision may be needed.
58
Application of the knowledge/ skills learned during MBIT studies:
First of I shall write the name of the knowledge and skills that were applied
by me during the internship.
MS Excel
MS Word
Bank Reconciliation
MS GP Dynamics ERP
Accounting and Finance Concepts
MS Excel:
The skill that really was handy for me during the internship was MS Excel. I
used Excel in order to create reports of sales. During the MBIT Mr. Asim
Tanveer taught us some techniques that really worked for me. Some of the
techniques of the Excel are as below importance wise:
Pivot Table technique: It is a technique that makes the report so
much easier and flexible that if you want to perform a two
dimensional report it is very easy by using pivot table technique.
At metro I used to make a report that consisted of dealer wise
sale in each month of the year. So I used it and from a raw data
I make an understandable knowledge for my manager.
I learned many other techniques in the department related to
Excel but that were not applied in the Metro as they were purely
59
project analysis related but I had not given a work to analyze a
project. These techniques are financial formulas, scenario
analysis, goal seek, data tables analysis. But while doing work on
I learned some new techniques of Excel that I did not knew
before. I shall discuss them in thing learned in the first semester.
An important concept of VLOOKUP, I used it a lot when I was
asked to create a report that had the discount of each dealer,
each dealer had different discount rate, so I used this formula to
give each dealer its corresponding discount rate.
I also applied the concept of freeze pan that helped me to match
the values with their labels.
I used macros to perform the functions that were similar to each
other. I used them as I had to do the same formatting on 70
Excel sheets, so I applied that formatting with one and create a
Macro and use that Macro for all other sheets.
MS Word:
In MS Word I used to apply mail merge technique. It was applied
when one of the finance person ask me to write a letter for the
following 70 venders. The text was same the only thing changing was
the name and amount of their balances.
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Bank Reconciliation:
In the courses of accounting we learned how to perform the bank
reconciliation, so this helped me in understanding the bank reconciliation
processes of Metro. Although there a slight difference between the wording
and the concept was same.
MS GP Dynamics ERP:
Metro is using customized accounting software the name of the software is
Power Accounting. As we have studied the MS GP dynamics financial module,
so I had no problem to understand the software used by Metro, as both are
similar but a difference is in reporting and advanced options.
Accounting and Finance Concepts:
As I spend my last week with the Accounts department, so to understand the
journal voucher’s entries the concept of accounting and finance learned
through MBIT helped me to understand their chart of account and journal
entries.
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New things Learned:
I shall give the learning skills and concepts in a category. The list is as below:
MS Excel’s learned things
How reporting is performed
The software of Metro Power Accounting
Handling of checkbooks and maintaining the bank’s manual register
Issuing checks and performing their dispatch process
Sales tax payment concept
Some little but important things
MS Excel’s learned things:
I had a lot work to perform in the Excel, so I had a chance to practice the
skills learned in the department. In addition to the skills and techniques of
the MS Excel I learned a lot of new techniques of Excel while preparing the
reports. The list of these new techniques is as below learning priority wise:
Advance filter: This tool helps us to sort filter the redundant or
repeating entries in the fields.
Subtotals: It is used to get the total of a group of same names.
Sorting with three different levels.
To paste the things by using paste special. You can use it for
pasting value, formulas or/and formats.
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How to select the data that is only in the front e.g. you have hide
some columns or rows and don’t want to select that, you can use
CTRL+g command to perform that.
Some important formulas e.g. text(), concatenate, window split,
synchronize scrolling, text to column technique and the number
formats etc.
The software of Metro Power Accounting:
The Metro’s software is also used by some other companies as Master Tiles,
so I learned this software. I learned how to perform journal voucher entry;
cash receipt entry, cash payment entry, sales invoice entry, and sales tax
invoice entry for both new entry and the editing the entry.
How reporting is performed:
I made a lot reports on sale data so I got a concept that hoe these reports
are created and presented to the management.
Handling of checkbooks and maintaining the bank’s manual register:
I learned how companies preserve the remaining half parts of check leaves. I
performed this step for many check books that had been ended. They also
prepare the payment via check in a register against each check number, so I
learned how they perform this function. On this register they write the check
bank name, then check number in a series, then check issued to , issue date,
clear date and remarks etc.
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Issuing checks and performing their dispatch process:
I filled many checks to the venders of the Metro, so I learned the correct way
of writing the checks. I also learned how to dispatch these checks both by
hand and by post. Before the dispatching of each check, the photo copy of
each check is mandatory.
Sales tax payment concept:
While working in Accounts department during the last week of internship I
also learned the procedure of sales tax payments. It is paid the net amount
on input tax and output tax. This concept was new for me.
Some little but important things:
There were some little things but important for office work that are as below:
How to operate the photocopy machine.
How to punch the paper in a correct way. The correct way is find
the middle point of the paper by folding it and then insert it into
the punch machine.
How to listen and transfer the private exchange phone
accurately.
How to prepare an office folder for putting voucher in it.
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Summary and Recommendations:
Overall Summary:
Metro Hi-Tech (Pvt.) Ltd. was established by "YUNAS" Group of Industries in
1973, incorporated as a Private Limited Concern on 7th October 1985. It
entered into the business of motorcycle in 2003. Metro is a private limited
company. Its main products are motorbikes that are MR-70 and MR-125.
Company wants to be remained in the business whatsoever the
circumstances are. It wants to meet the customer satisfaction as well as the
number one motorcycle company of the Pakistan in the future. Its business
volume is increasing with a good ratio each year i.e. in 20007-2008 its sale in
units was around 17000 and in 2008-2009 its sale in units is almost is 22000.
Metro has a functional organizational structure. It has eight departments.
Finance department is one of those where I completed my internship.
Metro’s marketing department is very strong as it has good product design
compared to competitors, excellent after sale service.
I did my six week internship at Metro hi-Tech (Pvt.) Ltd. First five week I
spend in Finance department and the remaining one week with the Accounts
department. In finance department I perform the function of reporting on
Excel, Bank reconciliation, bank register maintaining, sales invoice and sales
tax invoices edition, check filling, check dispatching etc. But my main focus
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was on reporting and bank reconciliation. While in the Accounts department I
just got the knowhow of the work. During the internship MS Excel helped me
a lot. By using my skills in Excel I created the reports in minimum possible
time. The technique that I used for this purpose was pivot table.
I learned many new concepts and skills that are as MS Excel’s related
new techniques, how reporting is performed, the software of Metro
Power Accounting, handling of checkbooks and maintaining the bank’s
manual register, issuing checks and performing their dispatch process,
sales tax payment concept and some little but important things.
I really feel that I have got very much during this internship. There is much
to learn in medium companies like Metro. So I suggest students try to get
internship in Metro.
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Recommendation:
For the Organization:
I have some recommendation for the organization:
It nowadays the electricity problem is very much disturbing the
business, so overcome this problem companies are using generators
as Metro is using itself. When shifting process of energy there is an
interval of workless situation the company must overcome this
problem. They can overcome this problem to give a person full time
responsibility to switch the energy source. The cost of this person will
obviously less than the cost of workless situation.
There are many areas in the Sindh and NWFP that are not covered by
Metro for selling purpose, As a result its competitor are enjoying in
that areas, Company must try to create its dealership setup in that
area.
The lead time is very high company must reduce it by bringing quality
workers in the production process. If the lead time will be reduced the
company can also reduce the delivery delay.
As company is growing its requirement for the capital are increasing,
and the company is getting loan at a high rate from the banks, The
owners must bring some new investors in the company either by
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making it public limited or issuing bond as it is a cheaper way of
gathering capital as compared to banks.
Company has not yet implemented ERP software, It should implement
it in all areas e.g. production, finance, payroll.
During my internship I felt that employees are very not motivated
because of the salary issues, they feel that the salaries given to them
are not sufficient, Company must create a payroll system that pays the
employees according the market.
Another thing that I notified was the wastage of time by employees;
company must keep strict monitoring on the employees in order to
minimize the time wastage. This thing can also be reduced by two
things. Number one company should increase their salaries and involve
them in decision making, this will feel them that they have create this
goal and they have to achieve it.
For the IBIT:
First and most important suggestion for IBIT from me is that it must
create career counseling cell that may search the internships for the
students. This cell must contact the companies, must organize the
seminar by inviting the different HR managers. There must a strong
marketing of the department that is lacking.
Many of the teachers don’t complete their course outline study
package due to many holidays or request of course reduction by
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students. It must be discouraged by the management of the
department. Department must ask the teachers that they have to
teach so much course.
Most of the papers are consisting of MCQ’s but I suggest that the
papers must be consisting of both the MCQ’s and the subjective
question.
Many courses of IT e.g. programming and networking are useless for
business students, Department should change these courses with the
courses that can increase the worth of student as a management
student nevertheless these course are IT related or management.
An important course that was not taught to us is “Project
Management”; I strongly recommend the department to include this
subject as a compulsory for all.
For the students of IBIT:
I strongly recommend the students of the IBIT that they should try to get the
internship in this organization, as there is much to learn in Metro, because
nor it is fully ERP implemented neither it is fully manual, It’s a combination of
IT and manual work organization so you have the possibility to learn both
ways.