INTERNSHIP REPORT ONCECO TYRE GUJRAT (Pvt.) Ltd.

Internship Report submitted to the Faculty of Management & Administrative Sciences in Partial Fulfillments of the Requirements for the Degree of Masters of Commerce..

MBA (HRM) sec G

UNIVERSITY OF GUJRAT

Date of submission13th Sep, 2013Name of Internship Assessor______________________

Signature______________________________

Part-1Introduction of the organizationThe Ceco Tyre Industries is basically tyre manufacturing company which is incorporated in Pakistan on the 25th of May as Private Limited Company under the companys act 1913 which is currently known as Company Ordinance, 1984. Company is now manufacturing and sale tyre tube and has been Pakistan largest exporter of tyre products. Ceco Tyre products are export to Indonesia, Australia, France, Italy and UK.Being the largest tyre manufacturer of Pakistan Ceco Tyre industry has facility located in Gujrat in Pakistan. There are totally 700 employees are working in different factory department. They are producing different type of tyres. Motor bike tyres Bicycle tyresThere are different no of employees working in factory according to the needs. Some time emergency labour also employed to full fill the work load need. These employees are fully skilled and playing important role in the development of the industry.1.1 Tyre division of CecoTyre division of Ceco Tyre has two units which are producing tyre and tube. These units are motorcycle tyre and tube unit, cycle tyre tube unit. Both unit of tyre division is ISO 9001 certified these both units are located at Gujrat. Tyre division are providing mostly tyre to Atlas Honda limited. Dawood Yamaha and sohrab bicycle Company.Sale network of the tyre division expand on 7 distributors in which 4 distributers for bicycle and 3 for sale of motorcycle tyre tube. Production capacity of bicycle tyre and tube is 1000 and 1200 per day. Similarly production capacity of motorcycle tyre and tube is 1500 and 2000 per day. Ceco Tyre industry hold 15% market share of motorcycle tyre and tube and25% market share of bicycle tyre and tube.Vision

To be a market leader with providing quality tyre & tube and. To strive for excellence and global recognition by continuous improvement, Innovation, dedication and growth.MissionTo be result oriented and profitable company by consistently improving market share, Quality diversity, appearance, consistency and customer acceptance.To come into view as a growth oriented concern ensuring optimum return and value addition to its shareholders.To provide the tyres: best in quality and reasonable in price. To create an efficient resource management and conducive business environment, involving an effective leadership by creating a highly professional and motivated management team fully equipped to meet challenge.To keep abreast with modern technology and designs to optimize production and enhance brand image to attain international recognition for the companys products. To set up high ethical business standards and be a good corporate citizen, contributing toward the development of national economy and assisting charitable causes.

2. OVER VIEW OF THE ORGANIZATION2.1 History of the organizationIn the year 1978 the Cheemas family started their first own business in Gujrat as Gujrat Flour Mill. They run this business for three years and after that they invested in Ceco Tyre Industry. So in 1981 they started their Ceco Tyre business. The first CEO of Ceco Industry was Jahangeer Cheema. Cheema family spend their whole money in this business.2.1.1 ExpansionAfter few year of working company management started to think about the expansion of business they are searching for new markets and they felt the need of new site for installation of factory to meet the demand of new markets. So they bought the land around the factory and extended the boundaries of the factory. With the passage of time they started new department inside the factory.2.1.2 New Retail ShopsThe company had open the whole sale and retail shops in all over the country in Pakistan. That time company introduces a new way of selling product at fixed price, which was much acceptable and appreciated by the customer.2.1.3 ExportAfter getting strong position in all over the country management decided to reach the international market and targeting international trough export. Due to the quality of product and at time delivery of goods Ceco Tyre industry got a reasonable share in international market.2.2 Nature of the organizationCeco Tyre is industry limited is basically a manufacturing company tyre main business is manufacturing of tyre and tube of different type. At the start of business Ceco Tyre is concerned with providing best quality of product to customer. Ceco Tyre is meeting the demand of customer not at local level but also outside the boundary the name of company.2.3 Future prospects of the companyThe world economy as whole facing crises these days but company is making effort to facing this challenging situation. Inflation rate are rising in Pakistan which cause the increase in raw material cost even while importing from other country because Pakistani currency going devalue against other currencies. At the other hand utility charges and energy crises is increasing day by day so in future company making efforts to install the modern machinery which consume less energy and produce goods in best quality.Company is making effort to adopting online system which reduces the time of inter industry transaction. Company continues to invest in modern technology which will be beneficial for the company in coming years.Management of the company making efforts to find new markets in world and also making effort to make good relation with supplier and finding supplier which provide better quality at low cost, the purpose of this is providing best quality product to customer at reasonable price.2.4 Product LineProduct line of the company is basically explained under one head Rubber products2.4.1 Rubber ProductsRubber products basically include Tyre and tube which is supplying to market. Mainly customer of tyre and tubes of Ceco Tyre industry is Atlas Honda Limited Dawood Yamaha Sohrab Bicycle Manufacturing CompanyTyre division sales network comprises of 7 major distributers in which 4 distributers are for bicycle tyre and tube and 3 for motorcycle tyre and tube sales. The major brands of tyre and tube for auto and bicycle which are registered brand is following Racer Bicycle Super Star Bicycle Hi speed Bicycle Long life load Bicycle Long Life Auto and Bicycle Cheetah Bicycle Cheetah Plus Auto and Bicycle Golden Star Bicycle Super Trail Auto 2.5 PESTL AnalysisPESTL analysis is analysis of five factors which can affect the organization these factors are Political Factors Economic Factors Social Factors Technological Factors Legal FactorsPolitical Factorsi) Politically instability in country badly affects the Ceco Tyre industry.ii) Management of the company is influence by the politically parties working in Gujrat.iii) Ceco Tyre industry providing benefits to their employees like old age benefit, pension funds etc. which is opportunity providing by the government to the company.iv) Government of Pakistan making efforts to increase export. Ceco Tyre industry can get benefit from this to increase their foreign markets share.v) Due to world trade organization tariff and restriction on trade is decrease which is opportunity for organization to import low cost material and export finished goods to outside the country.vi) Ceco Tyre is a registered company due to which they are liable to pay tax which decreasing their net profit margin.

Economic factorsi) Interest rate is rising in country which increases the cost of debt for company.ii) Due to devaluation of local currency high amount is payable to foreign supplier which increasing the cost of product.iii) Due to high inflation its becoming difficult for company to stable the price of their productiv) Ceco Tyre industry playing a reasonable part in the growth of country.v) Ceco Tyre industry manufacturing product to facilitate all economic classes of people.

vi) Ceco Tyre industry playing a role in decreasing unemployment in local area of Gujrat.

Social factorsi) Population growth rate of Pakistan in high which has positive sign for company. It shows that there is space vacant to which company can target.ii) People are now want comfortable and reliable product so this can increase in demand of product of Ceco Tyre industry.

Technological and legal factorsi) Advancement in technology increases the efficiency of production.ii) Rate of change in technology is slow in this industry which beneficial for Organization Company can get benefit from one technology maximum.iii) Electrical machine is used for attendance make it time saving for employees and its helpful for management to maintain the attendance record.iv) Due to use of machinery in production cost of spoiling of product decrease and quality of product increase.Legal factorsi) Current home market legislationii) International trade legislationiii) Industry specific regulation and competitive advantage Environmental factorsi) There is insufficient availability of clean water which is necessary to arrange for employees.ii) There is four season in our country. Company can operate their business in each weather condition.

iii) Typical weather condition of summer affect the production if tyre and tubes.

2.6 Contribution of the Organization toward economic developmentIt is necessary for the organization to do some for the economic growth of the country. Ceco Tyre industry also takes many steps for the growth of economy. They have great deals to their customers, employees and communities. They classify corporate social responsibility under the following heads. National cause donation Community investment and other areas2.6.1 National cause DonationFlood Relief activities This project has the following hallmarks Provision of one month food supply Provision of water pumps in housesCommunity Investment Azeez Bhatti Shaheed Hospital3. Organization StructureOrganization structure is very important element of any organization. Organization structure is shown by the hierarchy of the organization. It is visual map of chain of command.

CEO3.1

General Manager

Chief Security@ canteenManager HRManager CostingManager I.TAccount Manager

Manager Purchase

Chief Engineering SupportChief Tech Manager

Manager Industrial RelationManager Industrial Engineering

Manager WarehouseManager Ware House

Factory Manager Rag DivisionFactory Manager Tyre & Tube

M.C.T.T C.T.TManager Production

Manager Technology

Planning ManagerProduction ManagerProduction Manager 3.2 Number of employeesCeco Tyre industry is one of the biggest organizations of the Pakistan. it is also a leading tyre production company of the Pakistan. In start it has small no of employee but now company has expanded. its production capacity has increased in large extend. Today the group is Pakistans 3rd tyre manufacture and exporter with interest in whole sale and retail sector. Now the total no of employees working in Ceco Tyre industry is 700.3.3 Main OfficeThe Ceco Tyre company has its head office at Gujrat. Company finance and marketing staff also working in Head Office .Main office of the company is situated at river Chenab Gujrat.3.4 Introduction of departmentsDepartmentalization is necessary for every organization to perform the work efficiently and effectively. Departments are clustering of individuals into groups and clustering of these units into departments. Departments are making on different basis. Ceco Tyre industry has made department on the basis of functions which they perform in achieving the organization Goals i.e. HR department and Production department. Different peoples are working in these departments and in Ceco Tyre industry a department is headed by a manger. 3.5 Departments in Ceco Tyre industryThese are the departments which are working in Gujrat Ceco Tyre factory where I done my internship 1. Production Department2. Accounts Department3. Material management department4. Human Resources Department5. Where house for finished goods6. Costing Department7. Technical Department8. Quality Department3.5.1 Production DepartmentProduction department is key department in every manufacturing organization. In Ceco Tyre industry there is one main production department which is following Tyre and Tube DepartmentTyre and tube factory is department which is design for the production of tyre and Tube. Tyre and tube department further divide into two sub departments Bicycle tyre and tube and motorcycle tyre and tube. 3.5.2 Accounts DepartmentCeco Tyre industries limited have accounts department in Gujrat factory. This department handles all the accounts related activities there are six people working in this department. Work is divided between the employees who are working in this department. This department deals with salaries, wages, Account receivable, account payable, Bill verification, provident fund, pension fund, loans, day to day expanses. Now currently E.R.P data base system is installed which work very efficiently. Accounts departments are further divided in two sections One is deal with wages and salaries Second is purely deal with other accounts activity 3.5.3 Material management departmentMaterial management department plays key role in any organization. Ceco Tyre industry also have a material management department according to need of their work. Material management department of Ceco Tyre industry basically play role of purchasing of raw material or any other material or machinery which is necessary for operation. These materials are purchased from domestic supplier and also from foreign supplier. Material management department handles the both. Some sub departments are also working under material management departments. These are following1. Purchasing of raw materiali. Domestic purchaseii. Foreign purchase2. Receiving room3. Raw material stores3.5.3.1 Purchasing departmentPurchasing department is responsible for make sure of availability of required material. Purchase department of Ceco Tyre industry further divided into two departments one is domestic purchase and other is foreign purchasing department. Both purchase sub departments is head by a manager. Purchase department arrange material according to the material demand sheet which is received from the planning department. 3.5.3.2 Receiving RoomReceiving department is designed to firstly handle the all raw material or any other things related to Ceco Tyre industry. Receiving department received goods and then sends them to their proper designation. It is duty of receiving room to check the material according to the delivery challan. Receiving room then send sample of material to the quality department to check the quality of material if material is ok than it moved to send to the store room and if material is according to the quality standard it send back to the supplier. 3.5.3.3 Raw material storesRaw material store is built in Ceco to store the material when it received from the supplier and then issue it when there is in need for material in production department. In raw material store material is store in proper mannered.It is also duty of store room to issue material to the production department whenever they demand for it.3.5.4 Human Resource DepartmentThere is need of human resource department in every organization to manage the employees of the organization in this way that they become efficient and effective employees. Ceco Tyre industry Gujrat has also set up the Human Resource department.HR department of Ceco Tyre industry is responsible for the Hiring and firing of job in organization. It is also responsible for transfers of job from one department to the other department. For the hiring of staff HR department as define job specification and job description. When Hr department hire employee there is need to train them according to nature of work Hr department also arrange training program for employees. This training program some time also arranged for the old employees to update their knowledge and skills.HR department also responsible for the maintain the record of employee.

3.5.5 Quality Control DepartmentQuality control department is organized in Ceco Tyre industry to insure the quality of goods. Quality control department is equipped proper tool and machinery to check the quality of raw material and finished goods. Quality standard are define in Ceco Tyre industry which is properly communicated to the Quality manager and the other workers which are working in quality department. There is proper check and balance maintain by the higher management on quality department to insure that they are working properly. Management is working to insure to meet the quality standard ISO 9001: 2000.Quality manager is responsible to report to the higher management about any discrepancy in finished good quality.3.5.6 Technical departmentTechnical department in Ceco Tyre industry is working to support main production department. It deals with the process of chemical and rubber process. Laborites for testing different material are also working under the technical department. There are two laboratories are working in the Ceco Tyre industry one is for tyre division which is main laboratory and other is for tyre division Technical department is headed by the chief technical officer.3.5.7 Where house for finished goodsAfter converting raw material into finished goods it is necessary to store the finished good properly until their dispatch to buyer of goods or outlets of Ceco Tyre. In Ceco Tyre industry different store are working for the storage of retail store, export and Wholesale product. In store finished goods are stored in a proper way according to their dispatch needs.3.5.8 Costing DepartmentCosting department prepare the cost sheet of any article. It explains the each cost which is incurred on the production of that article. Costing department is responsible for preparation of cost sheet, preparation of material estimate sheet, Monthly profit and loss statements, calculation of material labour and FOH, preparation of annual budget on production base.Part IIInternship programI did my internship in Ceco Tyre industry Gujrat from 10-07-2013 to 21-8-2013 I completed my internship program in two department of Ceco Tyre industry which is material management and accounts department. Both departments are the key department of the organization. Before the explanation of internship program its necessary first to introduce about these two departments.4.1 Material management DepartmentMaterial management department plays key role in any organization. Ceco Tyre industry also have a material management department according to need of their work. Material management department of Ceco Tyre industry basically play role of purchasing of raw material or any other material or machinery which is necessary for operation. These materials are purchased from domestic supplier and also from foreign supplier. Material management department handles the both. Some sub departments are also working under material management departments. These are following4. Purchasing of raw materialiii. Domestic purchaseiv. Foreign purchase5. Receiving room6. Raw material stores4.1.1 Purchasing departmentPurchasing department is responsible for make sure of availability of required material. Purchase department of Ceco Tyre industry further divided into two departments one is domestic purchase and other is foreign purchasing department. Both purchase sub departments is head by a manager. Purchase department arrange material according to the material demand sheet which is received from the planning department. 4.1.2 Receiving RoomReceiving department is designed to firstly handle the all raw material or any other things related to Ceco Tyre industry. Receiving department received goods and then sends them to their proper designation. It is duty of receiving room to check the material according to the delivery challan. Receiving room then send sample of material to the quality department to check the quality of material if material is ok than it moved to send to the store room and if material is according to the quality standard it send back to the supplier. 4.1.3 Raw material storesRaw material store is built in CECO to store the material when it received from the supplier and then issue it when there is in need for material in production department. In raw material store material is store in proper mannered. Racks made in store to save the different types of material. 4.1.4 Accounts DepartmentCeco Tyre industries limited have accounts department in Gujrat factory. This department handles all the accounts related activities there are six people working in this department. Work is divided between the employees who are working in this department. This department deals with salaries, wages, Account receivable, account payable, Bill verification, provident fund, pension fund, loans, day to day expanses. Now currently E.R.P data base system is installed which work very efficiently. Accounts departments are further divided in two sections One is deal with wages and salaries Second is purely deal with other accounts activity 4.2 Material Management DepartmentI did three weeks work in purchase Department of the material management department. Purchase department of the Ceco Tyre industry is like a backbone of the organization because the availability of material at time is important to meet the production order. In Ceco Tyre industry working of purchase department is very complicated because they are dealing with many items at single time. To done the work efficiently and effectively purchase department are further divided into two sections which are following Foreign Purchase Local/Domestic purchase4.2.1 Foreign PurchaseForeign purchasing sector of the purchase department deals with all the purchase which is done from the supplier outside the country border. in start when I join material management department as internee legacy system was using to record the data. In this database system a code is given to each activity which is performed by purchase department. Operator can check the status of transaction trough putting this code. A password is given to the related person to protect the misuse of data base. Operator must have to put the password to access the legacy software. But now the new database system is installed to maintain the record of the transaction. This database software is known as ERP. ERP is stand for Enterprise resource system.ERP data base system is based on Oracle. it is online system of database trough which operator can work from anywhere using internet. An account is given to each employee. He can access using this account and password.Delivery time which is allowed in foreign purchase is 90 days.4.2.2 Local purchaseLocal purchasing sector of the procurement department deals with items which are purchased from the local dealer inside the country. Local purchasing is also known as domestic purchasing. Delivery time available to supplier is three months in which they are compelled to deliver good in the organization after receiving the purchase order. Eight people are working in local purchasing department. Local purchasing department is also using the same data base system which is used by the foreign purchasing. Local purchasing usually deals with purchase of following items Packaging Material Other MiscellaneousDifferent person in department deals with different items and they are responsible for the availability of their material at time.

4.3 Details of supervisorsIn production department following are the my supervisor who guided me and supervise to achieve my goal.name of supervisors and their positions in the department is following Name DesignationShahzad Ahmad Manager PurchaseMuhammad Aslam Asst PurchaseOther staff:Muhammad Naseem Account ManagerWasif Cheema Sales manager

Faizan ZahidFrom: 10-07-2013 To 21-08-2013

Serial #DateDay

Activities / Task

0110-07-13WednesdayThe very first day they gave me introduction about the department.

0211-07-13ThursdayBrief me about the basic activity of purchase department, study of different documents and understanding basic terminology.

0312-07-13FridayUnderstanding of purchase demand cycle. learn how its work

0415-07-13MondayLearn how to operate ERP (Enterprise resource system). Help seniors in performing their tasks.

0516-07-13TuesdayStudy of material estimation sheet; learn from supervisor about terminology used in sheet.

Week No 1 Purchase Department

Week No 2 Purchase DepartmentFaizan ZahidFrom 17-07-2013 To 23-07-2013

Serial #DateDay

Activities / Task

0117-07-13WednesdayLearn how to foreign purchase made and what is necessary for foreign purchase. enter data in system in purchase related reports

0218-07-13ThursdayMake quotation of material with the help of supervisor. dispatch these quotations to the suppliers

0319-07-13Friday

Learn how to make purchase order. Assist seniors in performing their

0422-07-13MondayHelp supervisors for the closing of monthly work

0523-07-13TuesdayMake purchase orders with the help of seniors. Dispatch purchase orders to the suppliers.

Week No 3 Purchase DepartmentFaizan ZahidFrom 24-07-2013 To 30-07-2013

Serial #DateDay

Activities / Task

0124-07-13

WednesdayChecked invoices received by the suppliers with material. compare them with the purchase order(check rate, quantity, confirm from receiving room for receiving of material)

0225-07-13Thursday. Send invoices to cost department for tax deduction and then send to the accounts department.

0326-07-13FridayUnderstand about local purchasing.Make purchase order for local suppliers

0429-07-13MondayMake purchase order and enter data in the data base to update the records

0530-07-13TuesdayReview the purchasing records and take the print out

Week No 4 Accounts departmentFaizan ZahidFrom 31-07-2013 To 06-08-2013

Serial #DateDay

Activities / Task

0131-07-13Wednesday. First day in accounts department get introduction about the departments activities.

02

01-08-13ThursdayLearn what debit note and credit note is and how to prepare it on ERP

0302-08-13Friday

Make debit and credit notes with the help of seniors.

0405-08-13MondayLearn what tax certificate is and why it is prepared. Make some tax certificate with help of senior.

056-08-13Tuesdayenter data in ERP data base

Week No 5 Accounts DepartmentFaizan ZahidFrom 07-08-2013 To 13-08-2013

Serial #DateDay

Activities / Task

0107-08-13WednesdayLearn to prepare purchase voucher and make purchase voucher.

0208-08-13ThursdayPosting of entries of daily inside transactions into ledger.

0309-08-13FridayEid Holiday

0412-08-13MondayEid Holiday

0513-08-13TuesdayUnderstand preparation of electricity duty challan. And lean why it is prepared.

Faizan ZahidFrom 14-08-2013 To 20-08-2013

Serial #DateDay

Activities / Task

0114-08-13WednesdayHoliday: independence day

0215-08-13ThursdayWork in wages section of the account. Work for preparation of wages sheet.

0316-08-13FridayMake entries in account receivable with the help of supervisor.

0419-08-13MondayWork with the person who deal social security of the wages and learn how they perform these operations.

0520-08-13TuesdayCalculate employee wages, prepare wages sheet according to their attendance.

Week No 6 Accounts Department

Week No 7 Accounts DepartmentFaizan Zahid21-08-2013

Serial #DateDay

Activities / Task

0121-08-13WednesdayAt last date of internship make some general discussion about working. My Supervisor shares some his experiences with me. and say me bye with best wishes

5 Operation which are performed by Purchase departmentPurchasing department of Ceco Tyre industry has basic function of purchase of raw material from a supplier who provides best quality at possible minimum price. This purchase of material is not a simple task work force of purchase department different purchase department is following Issuing purchase order. Purchase order transfer to supplier. Verification of delivery of quantity according to purchase order. Verification of bill after receipts of goods. Transfer voucher to tax department for deduction of sale tax of supplier. Transfer voucher to accounts department for payment to supplier.5.1 Purchase Demand Cycle of Ceco Tyre industryPurchasing demand cycle is a system includes the steps which are undertaken for completing the purchasing process. Before the getting knowledge about the operation which is performed by the purchase department it is necessary to understand the purchase demand cycle which is being followed in Ceco Tyre industry. Purchase demand cycle includes the all process which is taken organization from the creating demand of material to issuing of material to production unit and again generating of demand. It starts from the production department and end with the raw material delivery to production department. It includes the following steps Production department Model and purchase room Quotation Purchase order Supplier Goods delivery Receiving room Goods delivery to PUProduction DepartmentAt the first production department demand of material they need. This need of material may be to fulfill the routine production or to meet the some urgent production demand production department give the order of purchase of material trough material estimated sheet which is generated by the help of cost department.Purchase departmentWhen the demand of material or material estimation sheet is received to the purchased department, purchase department categorize them according to the time available in need of material. QuotationPurchase department than contact with suppliers and send quotation of material to the suppliers and ask them to send detail of price, quality and time of delivery which they can provide.Purchase orderAfter selecting suitable suppliers which will provide best quality at lowest price purchase order is generated in the name of that supplier and then send to the supplier.

SupplierAfter receiving of order of goods supplier make arrangement of delivery of goods and at settle date supplier make delivery of goods to the company.Delivery of Goods in organization and ReceivingAt due date material is delivered to the factory and receiving department of the Ceco Tyre industry received it according to the voucher, Then Receiving department send sample of material to quality department for quality checking. If material is according to the quality standard material is send to the raw material store.Goods deliver to the production unitAt the end production department received material according to the needs. 5.2 Purchase quotation Purchase quotation is prepared after receiving the material estimation sheet. Purchase quotations are sending to the different suppliers and asking them to send detail of material quality when they can deliver and price and sample of material. After receiving respond from the suppliers is selected who provide good quality in lowest price.5.2.1 Purchase quotation includesPurchase quotation includes the following points Name of the company is written on the top of purchase quotation. Name of the vendor to whom purchase quotation will send. Date of the preparation of quotations. Detail of the material which is required and conditions under which required, Signature of the person who prepare it and signature of the purchase manger.

After preparation of purchase voucher two copies or made One is sent to the party 2nd is attached in file for record5.2.2 Salient features of purchase orderPurchased order which is produced in Ceco Tyre industry on which I work during my internship has different features or points which is included in the purchase order of the Ceco Tyre industry is following At the top name of the Ceco Tyre industry is written Date of the preparation of purchasing order is mentioned Name of the vendor Detail description of material which required. Its include quantity, material code units, delivery date. Purchase order number5.2.3 Making of purchase orderDuring my internship I prepared purchase voucher. To prepared the purchase voucher on ERP system following steps should be taken At the first login to the ERP system by ID and password is providing by management. Go to purchase sections and select the purchase order preparation A box will open on desktop. Fill the information require like name of vendors, date of preparations, explanation about material, date of delivery, material code which is assigned by the company. Click on the report submission button. A box will open and showing the report submission in process. After some time ERP system automatically will produce purchase order.After preparation of purchase voucher print it and prepare three copies of itOne copy is send to the supplier2nd copy is attach in purchase voucher file3rd copy is send to the head office of the company5.3 Verification made after receiving of the materialAfter material is receive by the receiving department of the company. Invoice of the material is send to the purchase department. Then verification is made from the receiving department about the quantity of goods. And verification is also made about rate which is written on the invoice match the rate with the rate at which material is ordered. If rate charge in excess or low it is informed to the suppliers and clear ambiguity.5.4 Sending of invoice to the tax departmentAfter all verification invoices are sending to the tax department for deduction of tax. At time of sending rough record is maintained on the daily activity register with the invoice no and party. The purpose of maintaining rough record is to memorize the how many and whose invoice sent to the tax department because after tax procedure done by the tax department it will receive back for further procedure.5.5 Sending of invoices to the Accounts departmentAfter tax procedure invoices are send to the account department for the posting of invoices into accounts payable and payment to relevant party on due date. 5.6 Department of AccountsI did my three week internship in Accounts department of Ceco Tyre industry. Date of internship in accounts department is from 31-07-2013 to till 21-08-2013. During my internship program I performed different activities in accounts department. During my internship I get some basic knowledge about the features are characteristics of accounts department. These basic characteristics of accounts department is following Ceco Tyre industry is using double entry system to record their financial truncation. Ceco Tyre is newly installed ERP data base system which is based on oracle to record data. Accounts professional are hired to manage the accounts.Financial transaction of business is recorded in their relevant books. Different accounts related activities are classified in to different heads under which all record is maintained. To increase the efficiency of work all work is done trough computers. It also helps to reduce the paper work and on the other hand it decreases the errors in work.

5.6.1 Order Management module (OM)Order management module is a system in which data is recorded on dispatch basis. All financial data firstly record in this module and then send to the final accounts department with the invoices. Any modification if required is made in this data trough debit note or credit note. After issuance of debit note or credit note it is verified by the the supervisor or assistant manager of the accounts department. There are are different types of sub modules which are being used in accounts department these are following Account payable or Creditors Account receivable Fixed asset Long term Assets Foreign currency 5.6.1.1 Account payable or CreditorsAll the transaction which is related to liability of paying is recorded under the head of account payable. All payments to the suppliers made under this account. Debtor notes are issued to the supplier in case return of goods.5.6.1.2 Account Receivable or debtorAll the receivable transaction is recorded under this head. All receipts from the customer in against of sale are made through this. Credit notes are issued to the customer if any sale return is made.5.6.1.3 Long term AssetsLong term assets is also called fixed assets in Ceco Tyre industry for the recording of fixed asset this sub module is used. Assets are also depreciated and their depreciation entry also made under this module. Ceco Tyre industry is using different types of method to calculating the depreciation according to the nature of the assets.5.6.1.4 General ledgerIn Ceco Tyre industry to record the intercompany transactions of the business general ledger is being use in Ceco Tyre industry. The transactions includes the company daily office expenses, inter department material transfer.5.6.1.5 Foreign currencyThis sub gives the foreign exchange rate in different currencies. This spot rate could be used in export invoice. Current spot rate is use to calculate the value of invoices. 5.6.2 Sources of receipts and payments liabilityCeco Tyre industry Accounts department has different sources of receipts and payment. Following or the sources of receipts and paymentsSources of receipts Sale of tyres to the retail store Foreign selling of tyres Sale of tyre and tubePayments Utility expenses Payment of salaries to office employees Payment of wages to workers Payments of tax on sales Payment of custom duty Payments in contribution to the provident fund of the employees. Payments are made to local supplier of material5.7 Operation performed in accounts DepartmentDuring my internship in accounts department I perform the different operations in department. These operations are being performed in department. Following are the activities assigned to me during my internship program on which I work during internship Preparation of debt note Preparation of creditor note Preparation of tax certificate issued to the supplier Posting of purchase voucher Preparation of sales tax invoice5.7.1 Preparation of Debit notesDuring my internship program I work on the making of debit note which is usually is made against the supplier. The main purpose of making debit notes is following Anything missing in the purchase order made by purchase department is charged by the suppliers like the delivery charges or transit expenses. In purchase order specific quantity of material is mentioned which is ordered but some time if supplier did not send material according t mentioned quantity if quantity received is less than ordered then debit note is made for adjustment of shortage 5.7.2 Preparation of credit notesAs the debit note credit note is also made to rectify some mistakes but it draws against the buyer of the product. This note is use to make adjustments of mistake accrued. Some or the main and important reasons for drawing the credit notes is following When the product which have sold returned by customer credit notes are prepare for the adjustments of the returned goods. If the goods are disfigured within the warranty time period and returned credit notes issue If the price of the product overcharged than credit note also make for adjustment.5.7.3 Tax related activitiesIn Ceco Tyre industry accounts department treat two types of tax during my internship I understand these types of taxes and also learn how we can well handled its. Types of taxes are following Tax payable Sales tax Income tax5.7.3.1 Tax payableAny customer who purchases our product is liable to pay tax. This tax is get from customers and then it is paid to the Federal Board Of revenue. Tax certificate is received from FBR for payment of tax. Company also pays tax to the suppler on the purchase of raw material which is recoverable in the future. In case of tax payable its important to know that tax payable is not directly received by customers and in case of tax recoverable it also not directly paid to the supplier.5.7.3.2 Sales TaxSales tax is which is imposed when the company done the sale. Sale tax is calculated on the amount of total sale. A certain percentage or rate is applicable on sale for tax purpose.5% tax rate is for the sale of material. 5.7.3.3 Sales tax invoiceDuring my internship I work on the preparation of sales tax invoice. Sales tax invoice is written document which is basically make to calculate the sales tax. Sales tax invoice includes the different information which is necessary to include. Sale tax invoice prepared in Ceco Tyre industry includes the following First of all the name of Ceco Tyre industry is written on the invoice with the complete address of the organization. It includes the address of the head office of the company. A national tax no is assigned to the company by tax authority this also written on tax invoice. Name of the buyer and their sales tax no also written on the sales tax invoice. Date of preparation of sales tax invoice. All information about the goods sold related to their quantity. Price is written and units are also mentioned. Sales tax invoice also signed by the person who prepared it. At the end name of company is mentioned who issuing the sales tax invoice. At the end sales tax invoice is signed by the manager of accounts department.5.7.4 Preparation of tax certificate issued to the supplierPayments to the supplier against the purchase of material are made after the deducting of amount of tax.16% tax rate is applied to the purchase. After deduction of tax this tax is paid to the Federal Board of Revenue, now the company responsibility to issue a certificate to the suppliers. This certificate is proving of tax payment supplier keep it with for meeting any inquiry by Federal Board of Revenue .tax certificate issued to the suppliers include the following Name of the issuer Date of the tax payment and date of issuing of certificate Tax invoice number Name of the supplier to who tax is paid Amount of the tax paid A copy of payment to the Federal Board of Revenue is also attached with Tax certificate is signed by the manger of accounts.5.7.5 Preparation of Purchase invoiceDuring my internship program I work on the preparation of purchase voucher. Purchase voucher is made according to the bill received from the supplier. Accounts department received bill from the purchase department. Purchase voucher is made with the name of supplier.

Contents of purchase invoice There are different steps involved in the preparation of purchase voucher. According to the steps of making purchase voucher purchase voucher includes the following Name of the vendors written on the right side of the purchase voucher. After the name of the vendor amount of invoice is written unit of currency should be write. Below the name of vendor site code is mentioned. Invoice Date is writing after the vendor code in the same row but in next column. In the third row invoice no and voucher number is written in different column. In the 4th row name of company with location is written After it all description is made due to which purchase invoice is made all calculation is shown in it. At the end total amount is also written on the purchase invoice. There should leave space for the signature of three different authorities which or prepared by, checked by and approved by.For the preparation of purchase I work on the computerize Enterprise resource system which is oracle application. Proof reading made before final printing of the purchase voucher is necessary. One copy of purchase voucher is given to the cashier and one is keeping in the record.5.7.6 Preparation of wages sheetAccounts department has separate section for wages. Wages sheet are prepared at the end of each month. At the end of each month attendance of each worker is received by each department. Wages sheet are prepared according to the attendance sheet received following steps involved in making of wages sheet. Calculate the regular working hours according to the attendance. Multiply regular working hours and per hour wages Make calculation of overtime if any worker has. Deduction is made for amount as installment of loan which is received by customer. At the end final total of wages is made which is payable to worker.5.8 Summary of learning5.8.1 Skills and qualification I gained during my internshipI did my internship in Ceco Tyre industry from 10-07-2013 to 21-08-2013 in material management and accounts department of the Ceco Tyre industry. During my internship program activity and task which is given to me help me to enhance my knowledge and skills.At the start of internship my confidence level was low for dealing with seniors and peer group but with the guidance of my supervisors in early I get my confidence and learn how to deal with others. Dealing with others help to improve my communication skills. During my internship in purchase department when I saw my supervisor to communicate with the outside parties specially suppliers I learned trough observation how to deal in official way and how we can establish a good relationship with suppliers.During internship I worked on the ERP system which is database software. Which increase my knowledge and skills which is a positive add in my abilities.

5.8.2 Responsibilities I have undertaken during my internshipThe purpose of internship program is to get skills to full fill the different types of responsibilities in a good way. During my internship program different kinds of responsibilities are given to me to perform. Responsibilities which are undertaking is following In purchase department my supervisor assigned me task to classify the items include in material estimation sheet according to their time span which is available. In the cash office of the accounts department my supervisor gave me responsibilities to count the cash and pack them according to the salary per worker with the name of worker. In purchase office my supervisor gave me responsibility to complete the inside the department transaction like delivery of report from one office to the other at proper time and receiving their reply and inform its properly to the supervisor. After spending some time in department and after understanding basic of work responsibility was given me to closing the work at the end of day. My supervisor guided me to fulfill this responsibility. In purchase department I was responsible to put different documents reports in their proper files and updating the record properly.Accepts to these different types of miscellaneous responsibilities were assigned to me during my internship program to enhance my skills and knowledge.5.8.3 Influence of internship on future career planInternship program arranged for the student of business administration has also purpose to grow the student as well he can properly work in the future their career life. As student it is necessary for me to getting knowhow about the modern perspective of business. I should also be aware to the opportunities for job available in market. This internship program help me in this way that trough internship doing practical work I have got knowledge about the practical work which will help me in future to choose job field. Internship helps me to improve my communication skill which will help me in future at the time of jobs interview. Internship which I done is just like an experience its help me to adjust in organization where I will first time go for job. Its help full me to deal with the persons in my daily life and also will help in job. In the changing and competitive organization culture every organization want to hire the person who have enough knowledge, skill and practical experience to handle the different situation, So internship help me to working in different conditions and handling situations.5.8.4 Correlation between internship and class room knowledgeWhen I did my internship I observed that there are so many thing terminologies which did not found in the class room knowledge. Practical field is not all but some different from the class room knowledge. Class room knowledge is just providing a base which prepare us to in an idolized situation but the actual situation is different which I only learn trough experiences. As being a student of management sciences which is not the actual science importance of internship increase more to understand properly. it is quite right to say that internship is necessary to conduct. Its truly help students to improve their weakness and clear understanding about the concepts.

6.Conclusion Of the reportAfter explaining about the company, and detail description of my internship program which I have completed in Ceco Tyre industry private limited Gujrat. Now it is necessary to conclude my internship report so that reader can get better understanding about the company where I did internship. Conclusion of the report divided into three parts which are followings Summary of the conclusion derive from internship experience General Observation about the organization SWOT analysis6.1 Summary of the conclusion derived from internship experienceIn this era rivalry among the organizations are increasing day by day. Businesses are facing different kinds of challenging. In This situation it is necessary to polish the business student with the new trend in business. They should have more knowledge and having experiences of practical work. At the first day when I joined Ceco Tyre industry as internee my confidence level was not good. But in two three days with the help of my supervisor and senior internee I get my confidence level good than first day. There was very good environment to learn. My supervisors and staff are well trained and have good knowledge and skills about work. My supervisors and all staff help me to learn from internship. They properly guided me and tell me about the work.Internship which I did in Ceco Tyre industry helps me to boost my confidence level. It helps me to enhance my knowledge and skills, specially its effect on my communication skill. I learned how to work with seniors subordinate and with peer group. This experience will give me confidence when I will go for job. I observed that internship being a part of business student is a good thing. It is not a time wasting activity as many people thinks.

6.2 General Observation about the organizationI did my internship in Ceco Tyre industry private limited Gujrat. I choose purchase and accounts department for internship purpose. Ceco Tyre industry limited is a good company. Company have good name in market and have good market share. Ceco Tyre industry has strong culture and employees of company are well trained and have knowledge about their work.As I observed during my internship company management is quite good to manage the all operations of the company they are trying to facilitate their workers and employees. Technology which is being used in the industry is not up-to-date as in modern business world, but the management of company making efforts to adopt new technologies to achieve effectiveness and efficiency in production. Employees working in organization have high level of loyalty, many employees working in organization since many years. Organization is playing good role in fulfilling social responsibility of the organization by performing active part in social welfare.In final I conclude that organizations environment; working condition is good to work and a good opportunity to join organization for career because organization provides growth opportunity to workers. Organization is also a best place for the students to complete their internship program organization staff and management fully guides the internees and provides a good environment to learn.6.3 SWOT AnalysisAfter completed my internship in Ceco Tyre industry I did SWOT analysis of the company according to the information which I got trough observation and from the employees of the organization including office staff and workers working in production areas. SWOT analysis of the company shows the strength they have and weaknesses. These both factors which come from the inside of the organization and on the other side I analysis about the external factor threats which are facing by company or company can face in future and opportunity which or available to company. The factors which I found trough analysis is followingsStrength 1. Organization has a strong culture which is strength for the organization.2. Being the largest tyre making company in Pakistan, Company is enjoying good will.3. Ceco Tyre is old company due to this company have own retail shops in all over the Pakistan which is a strong point for company as compared to other competitive companies.4. Company is enjoying customer loyalty.5. Employees of the company are skilled and experienced which is strength for company.6. Ceco Tyre industry also has its warehouse which has large capacity to store the raw material and finished goods.7. Company is enjoying largest exporter of Pakistan in tyres industry.Weaknesses1. Many office staff of the company is old aged. They are not aware to the modern knowledge.2. There is communications Gap between the workers and management which leads to creation of disputes.3. Company have research and development department but it is not active as it should be.4. Technology for using of tyre and tubes production not up-to-date.5. Many new educated staff is not well paid dew to which their motivation level decrease and they are searching for new opportunities.Opportunities1. Company can increase their sale by making promotional activates in foreign countries.2. Company can increase market share opening their outlets of tyre and tube in different cities.3. Company has a large capital that is why they can increase their production line.Threats 1. Companies is facing tough competition by others tyre making companies.2. Political instability in country is threat for company to expand business.3. Government is applying high custom duty on imported goods which increase the cost of raw material. 4. Interest rate is increasing rapidly which affect the expansion plan of the company.5. There is free entry of new companies in international markets which is threat of competition also facing by company.6. Government is charging high tax rate on sale which is decreasing profit margin.

7 RecommendationsAfter doing SWOT analysis according to my observation I think Ceco Tyre industry should take some steps to improve their business conditions. Following are the recommendation which company should follow 1. Company should expand their business as backward integration it helps the company to produce raw material for their need at low price as compared to purchasing from outside suppliers. It also helps to improve quality of raw material which ultimately affects the finished goods quality.2. There should be training program arranged for workers and management to enhance their knowledge and skills. Introduce them about the modern perspective of business.3. Companies should support their local supplier to produce material inside the country which company compelled to import. by this company can reduce cost of material and by saving custom duties and other charges.

References Panel. (n.d.). Retrieved February 25, 2015, from http://www.cecotire.com/cgi-sys/defaultwebpage.cgi Wikipedia. (n.d.). Retrieved February 25, 2015, from https://www.wikipedia.org/

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