Internship Report

Report Title: Internship Report on Gujranwala Chamber of Commerce & Industry Presented To: Prof. Dr. Ehsan Malik

Presented By: Bilal BC06132

Approved By: Sir Ashar Shakeel
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Presentation Date: August 26, 2010

Gujranwala Campus
Executive Summary
I have selected Gujranwala Chamber of Commerce & Industry (GCCI) organization. All the companies or businesses in Gujranwala are members of GCCI. The GCCI can issue Membership or Measurement Certificates as well as Certificates of Origin for the export cargoes and attestation of commercial documents. GCCI also issues recommendation letters for Visa and Passport & other benefits. I have learned a lot from this organization. I have done my work of internship in R & D Cell for first three weeks, one week in Membership department, one in Accounting & last one in Computer cell. Everyone in these departments has supported me, in order to collect important information required for this report. Whenever I go, they received me with warm welcome and helped us in all matters. Their cooperation provided me comfortable environment for data collection. I have conducted face to face interviews with staff members. I have also observed the whole organizational environment. I have felt many discrepancies, like non segregation of duties, dose not have required staff & faced many other challenges in the industrial sector due to energy crisis, political & other challenges which become the grater hurdle in the way to promote the industries smoothly. I concluded from my internship that GCCI is running as a good organization and has solid records throughout its life period & providing many benefits to its employees. To Internship Report Page 2

overcome the discrepancies, I recommended to the GCCI management to segregate the duties, hire the required staff & introducing new departments.

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Acknowledgement
I owe our gratitude to Allah Almighty whose shower of blessings and kindness has been on me through out the working on these pages. It is His help that I am finally able to compile this Report. I am indebted to Staff of GCCI for their support and intricate comments on various aspects conjoined with motivation made me to come forth holding such as report.

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Dedications
I dedicate this lovely report to: My Parents & Friends Teachers, especially to my honorable Teachers Sir Hafiz Imran, Sir Naveed Iqbal, Sir Aamir Sohail & My favorite Sir. Khurram Aziz Fani,

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Table of Contents
Introduction to Report Organizational Profile Vision Statement & Mission Statement Management Hierarchy Departments Area of Internship Work Done During Internship Financial Analysis SWOT Analysis Recommendations Conclusion Bibliography Internship Report 01 02 05 06 07 13 14 37 53 60 61 62 Page 6

Glossary Annexure

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Introduction to Report
This report is made for my professional experience after the completion of B.Com 8th semester. This report is about Gujranwala Chamber of Commerce & Industry (GCCI) which is engaged for the promotion of commerce & industry in the district of Gujranwala. In this report, I have explained, my experience at GCCI. First of all in the first portion of report, I am giving the Profile of GCCI & its major service to members. I have also explained about the Quality Policy of GCCI. The management of GCCI has not provided me Vision & mission. So, I have created Vision & Mission Statements of GCCI. In the second portion the report this I am try to explain different departments of GCCI & their functions.  Membership Department  R & D Cell  Accounting Department  Computer Cell In this part, I have also explained the area of my internship at GCCI & the work done by me at GCCI during internship. In the 3rd part of report, I have done the Financial Analysis of GCCI in order to evaluate the financial position of the GCCI through;  Horizontal Analysis  Vertical Analysis  Ratio Analysis

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After this I have done the SWOT Analysis of GCCI in order to evaluate the Strengths & Weaknesses, and Opportunities & Threats of GCCI. On the basis of SWOT analysis, I am in a position to recommend some solutions for the effective & efficient operations of GCCI & to overcome all the weaknesses & threats.

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Organizational Profile
The Gujranwala Chamber of Commerce & Industry is a Joint Stock Company registered as, limited liability Company under the Companies Ordinance, 1984. The GCCI is engaged in the promotion of Commerce & Industry in the District of Gujranwala. The Gujranwala Chamber of Commerce & Industry has providing his services to its members from a long period of time since 1970’s, in Gujranwala. It strives hard to contribute in the economic development of Pakistan in general or of Gujranwala in particular .But now a day, due to energy crisis, high inflation, higher interest rate & high unemployment rate are major challenges which badly affect the Trade (Exports or Imports) & economic development of the Pakistan. Logo of GCCI:

Services of GCCI:
The Gujranwala Chamber of Commerce & Industry providing the following major services to its members;  To issue Measurement Certificates as well as Certificates of Origin for the export cargoes and attestation of commercial documents. Internship Report Page 9

 GCCI also issues recommendation letters for Visa and Passport.  The Foreign Exchange is issued on Chamber's recommendations.

 GCCI organizes Pakistan's Pavilions in the international fairs abroad to promote export.  GCCI also organizes Seminars, Training courses, Conferences on various subjects to promote the cause of private enterprises.  GCCI invites Minister's and Government functionaries to the Chamber to identify the problems being faced by trade and industry and to help resolve them.  A number of foreign trade delegations, dignitaries and diplomats visit the Chamber and exchange views on matters of mutual interest.  It publishes Magazine or Trade Directories, Statistical Data and other publications for the benefit of the business community. It brings out fortnightly Trade Journal about Chamber's activities, containing business, legislative and civic news.

Contact of GCCI:
Address: Chamber Plaza, Aiwan-e-Tijarat Road, Gujranwala - Pakistan Telephone: +92-55-325-6701 +92-55-325-6702 +92-55-325-6703 +92-55-325-6704 Facsimile: Internship Report Page 10

+92-55-325-4440 E-mail: info@gcci.org.pk

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Quality Policy: The Gujranwala Chamber of Commerce & Industry Every activity of GCCI is directed towards the promotion and protection of the business interest of its members at National and International level in accordance with ISO 9000 standard. Objectives: To reduce the communication gap between GCCI’s members and Government officials by acting as a bridge between the two sides.  To make sure that the latest development/changes in the Govt. policies trade enquiries, business opportunities, international fairs & exhibitions, technological developments around the world are available to the members through GCCI.  The Gujranwala Chamber of Commerce & Industry will not only provide information to the members but will also arrange training courses, workshops, seminars on various technical, technological, regulatory, taxation and management aspects of business.  To develop a good image of our members at the National and International levels so as to boost their business activities.  To establish, implement and maintain training programs within the organization for the better performance of our employees so as to serve the members in an effective and efficient manner.

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Vision & Mission Statement
The Gujranwala Chamber of Commerce & Industry has defined only Quality Policy. The Computer Officer Mr. Hafiz Muhammad Burhan has said that they have only Quality Policy which acts as Mission & Vision Statement. Following are the Vision & Mission Statements, which I have defined; Vision Statement of GCCI: To work together as a district of businesses (profit and non-profit) and residents whose goal is to serve as the stewards of positive future growth while maintaining the great traditions and personality unique to Gujranwala. Mission Statement of GCCI: The mission of Gujranwala Chamber of Commerce is to provide guidance that supports the existing business, community while promoting favorable economic growth & development in the Gujranwala.

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Mangement Hirerachy

B

Departments
The Gujranwala Chamber of Commerce & Industry has performed its operations with the help of following four departments;

Membership Department The Membership department is most important department of Gujranwala Chamber of Commerce & Industry. This department is dealing with all the issues regarding membership of Gujranwala Chamber of Commerce & Industry. This department can maintain the record of all the members of Gujranwala Chamber of Commerce & Industry. This department can issue membership to a Sole Proprietor or Partner or body Corporate or Company, if they can fulfill the eligibility criteria as defined in Articles of Association of Gujranwala Chamber of Commerce & Industry. These are either a Sole Proprietor or Partner or body Corporate or Company can apply in form prescribed by the Executive Committee accompanied with the admission Fee & annual subscription for the first year. Internship Report Page 14

This application is send to Secretary General of Gujranwala Chamber of Commerce & Industry. The Secretary General of the Gujranwala Chamber of Commerce

& Industry shall receive this application & place such application on Agenda for the next meeting of the Executive Committee which shall thereupon consider such application & can accept or reject the application as described in Articles of Association of the Gujranwala Chamber of Commerce & Industry. Functions of Membership Department: The Membership Department of Gujranwala Chamber of Commerce & Industry has performed the following functions; ➢ Issuance of Certificate of Gujranwala Chamber of Commerce & Industry, ➢ Issuance of ID card of Gujranwala Chamber of Commerce & Industry, ➢ Granting Renewal Membership of Certificate of Gujranwala Chamber of Commerce & Industry, ➢ Attestation of Commercial documents either a member of Gujranwala Chamber of Commerce & Industry or not, & ➢ Issuance of Visa Letter. These are all the necessary & main activities which are done by this department in order to facilities the members of Gujranwala Chamber of Commerce & Industry. R & D Cell: The Research and Development Cell of GCCI was established in 2007, as the focal point for various activities carried out in the Chamber. It was set up in response to a growing need from the business community in the region for up to date information on business and economy, processing the same to facilitate members, and interacting with the government on macro and micro business and economic policies.

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The Department today enjoys an enviable reputation in the country one of the leading centre for research and analysis on domestic and international business and economic issues. It is regularly consulted by the government and international agencies on important national and international policy matters. It is involved in extensive research used in nearly every discipline for recommendation and analysis of various national and international policies affecting business, trade and industry.

Functions of R & D Cell: We are planning to make our R&D cell as a platform that will bring the academia and industry closer by offering the following opportunities to the students of management sciences:  Organizing Seminars and Workshops  Acting as a Platform  Internship Opportunities for your students  Seminars and workshops that can be arranged in GCCI as well as in your respective institutions  Sharing our own research projects and reports with university for their valuable input  We offer a research facility where students can come and know about the issues related to Gujranwala industry. They can conduct research projects regarding these issues and our R&D cell would support them in such projects  Research Reports  Policy Proposals Accounting Department: Accounting department is one of most important department for any organization. As it records each & every truncations of the business, if the professional & honest staff is not present in an organization the work of whole organization is highly affected. . So, for being conduct a profitable business & achieving the goals of an organization is it the first requirement that all the expenditures & incomes are properly recorded & maintained Internship Report Page 16

honestly & popper audit of these records can prevent from happening of some irregularities or fraud. The accounting department of Gujranwala Chamber of Commerce & Industry is managed trough “Accounting Officer” only. He has performed the both duties of an accountant & a cashier without any assistant or staff.

Objectives of Accounting Department: The objective of Accounts Department is to keep record of all the expenditures & incomes of the Gujranwala Chamber of Commerce & Industry, & make the financial statements for the users especially for the members of Gujranwala Chamber of Commerce & Industry. Functions of Accounting Department: The Accounting Department of Gujranwala Chamber of Commerce & Industry has performed the following functions; ➢ Proper Analysis & checking accuracy of accounting information Gujranwala Chamber of Commerce & Industry. ➢ Proper Recording & Posting of all daily transaction of Expenditure or Income of Gujranwala Chamber of Commerce & Industry. ➢ Verification of all the invoices approved by Secretary General of Gujranwala Chamber of Commerce & Industry. ➢ Matching of Records with Membership department for all the Fees received by membership department of Gujranwala Chamber of Commerce & Industry. ➢ Cross match the accounts with banks accounts of Gujranwala Chamber of Commerce & Industry. ➢ Proper adjustments of the accounts at the end of year in order to timely making the financial statements of Gujranwala Chamber of Commerce & Industry & to assisting

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the auditor for in time audit & for annual report of Gujranwala Chamber of Commerce & Industry. ➢ Upto date of all the records of Gujranwala Chamber of Commerce & Industry in order for interim audit of accounts of Gujranwala Chamber of Commerce & Industry. ➢ The income of Gujranwala Chamber of Commerce & Industry is including;  Membership Fee,  Admission Fee,  Attestation Fee,  Form Fee,  Visa Letter Fee,  Rental Income  ID Card Fee, &  Miscellaneous Income. While the expenditure of Gujranwala Chamber of Commerce & Industry are including; 1. Administrative Expense which are; ➢ Staff Salaries & Benefits, ➢ Utility Bills Expenses, ➢ Rent, Rates & Taxes, ➢ Seminars or Functions, ➢ Research & Development Expenses, ➢ Donations, ➢ Employees Benefits Contribution Programs, ➢ Chamber Shields, & ➢ Miscellaneous Expenses. The proper & accurate record of all these incomes or expenditure is the function of Accounting Department of Gujranwala Chamber of Commerce & Industry. Internship Report Page 18

Computer Cell: The Computer or Information Technology has changed the traditional way of doing the business. Due to Globalization it is a prerequisite for any business to grow & achieve its objective in the global comparative environment. Industry. Objectives of Computer Cell: The basic idea of Computer Cell is to bring innovation and to keep up with latest inverted trends of Information Technology. This department is furthermore responsible for the maintenance & updating the website of the Gujranwala Chamber of Commerce & The “Computer Officer”, Mr. Hafiz Muhammad Barhan headed this department of Gujranwala Chamber of Commerce &

Industry and provides all relevant information to the members of the Gujranwala Chamber of Commerce & Industry. Function Performed: In Gujranwala Chamber of Commerce & Industry, the Computer Officer is solely responsible for installing and maintaining computer systems. Following are the major functions and duties performed in this department; ➢ Proper & Proactive management & maintenance of information technology and computer systems of Gujranwala Chamber of Commerce & Industry. ➢ Proper & efficient application of the operations of information systems and Electronic Data Processing. ➢ Improvement in Technology & proper implementation of policies and procedures for electronic data processing. Systems operations and development of Gujranwala Chamber of Commerce & Industry. ➢ Timely & Updated information shall be uploading as soon as possible for the benefits of the members of the Gujranwala Chamber of Commerce & Industry. Internship Report Page 19

➢ Monitoring & overcome all the problems of the staff of Gujranwala Chamber of Commerce & Industry regarding Computer Systems.

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Area of Internship
I have selected the R & D Cell of Gujranwala Chamber of Commerce & Industry for my internship. But I am never restricted myself to R & D cell, I am also spend my time & learn from the remaining three departments of Gujranwala Chamber of Commerce & Industry. All the departments in Membership Department, Accounting Department & Computer Cell. So, I have done work in every department of GCCI during my internship.

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Work Done during Internship
During internship at Gujranwala Chamber of Commerce & Industry, I spend my first three week in R & D Cell; The Director General of R & D Cell gives me a golden opportunity to work with him as in R &D cell only Director General is managed the affairs or work of Gujranwala Chamber of Commerce & Industry. In the first week, he gives me briefing regarding: ✔ How to make a Chamber news Bulletin? ✔ How to conduct a Research for Chamber members or public? Chamber News Bulletin: The Director General of R& D Cell explained me the bulletin means a magazine which is issue fortnightly by the Gujranwala Chamber of Commerce & Industry, it is the requirement of every chamber to issue news bulletins & it includes following parts; 1. President Message; the message from the President of the Gujranwala Chamber of Commerce & Industry. 2. Columns or General Articles; means write articles like on Unemployment or Energy Crisis or other that affect the import or exports of the goods. 3. Trade Opportunities, it involves two elements; a) Wish to Buy, b) Wish to Sell 1. Up Coming events across the world, it includes the upcoming exhibitions or seminars. 2. International Tenders, 3. Urdu Section, & 4. Pictorial views

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He has given me some data in from of books & articles for analytical review & for me guide. These articles & books are proof very helpful for me during internship.

Research: He explained that, we conduct research on the industrial sector in order to improve or solve the problems of commerce & industry in Gujranwala. He said that, first of all us;  Define Problems or term of reference  Identifying the Variable,  Theoretical frame work ,  Design & Methodology, &  Physical implementation The same research, as I have taken course as Business Research Methods, it is really good for me to learn the practical knowledge of research. In the library of the Gujranwala Chamber of Commerce & Industry a lot of books, reports or bulletins of different cities are prove very helpful in analytical review. In the second week of the internship, I am working with Director General & assist him in making the Chamber news bulletin & Director General has helped me & gives me mistakes in order to improve my skills & politely . In the 3rd week of internship Director General has given me an assignment to make country Profile of 5 countries; 1) Germany, 2) Bosnia, 3) Vietnam, 4) Chili, & 5) South Africa Internship Report Page 23

My requirement in this assignment is the following:  Economy of the Country,  Geographic & economic steeps; it includes;  Official Name,

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 Location,  Boarder Countries  Form of Govt.  Head of State,  Population,  Area,  Pakistan’s Balance of Trade with Germany,  Pakistan’s op ten exports to the Germany,  Pakistan’s op ten exports to the Germany,&  Key economic indicators. After the submission of the above assignment, I have started my working in other department n order to take the full practical experience of GCCI. I have worked for Membership department for one week in forth week. At membership department, I have learned how to issue a certificate of the membership the Gujranwala Chamber of Commerce & Industry. They procedure is to renew the membership of Gujranwala Chamber of Commerce & Industry. The main function of this is the issuance of membership ID card, attestation of commercial documents for exports Gujranwala Chamber of Commerce & Industry, Visa etc. The whole work of the Gujranwala Chamber of Commerce & Industry can be understood by the help of 2 legal documents f the GCCI.  Memorandum of Assosiation, &  Atticles of Assosiation.

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Memorandum & Articles of Association The Gujranwala Chamber of Commerce & Industry

Chamber Plaza, Aiwan-e-Tijarat Road, Gujranwala - Pakistan Tel: 055-3256701~4, Fax: 055-3254440
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Web: www.gcci.org.pk

Memorandum of Association: The Memorandum of Association (MoA) is the Chartered or constitution of the Company. It lays down the objective, scope of activities of the company & defines the company relationship with outside world. The MoA of GCCI is as follows, 1. The name of association is "The Gujranwala Chamber of Commerce & Industry”, Gujranwala. 2. The registered office of the Chamber will be situated in the province of Punjab. 3. The objects for which Chamber is established are; a. To promote, aid, develop, stimulate and protect the economic interest of Pakistan in general and of those engaged in industry, agriculture, commerce, trade, banking and insurance, in particular. b. To consider all questions connected with trade, industries, agriculture, manufacture and commerce & to initiate and or support necessary action connected therewith. c. To consider, support or oppose legislative or other government measure affecting the economic businessmen and industrialists and also make representations to Government on grievances, if any. d. To adjust controversies between members of the Chamber. e. To collect and circulate statistics and other information-relating to the commercial, industrial, agricultural and financial interest of the businessmen and industrialists. f. To arbitrate in settlement of disputes arising out of commercial transactions between parties willing or agreeing to abide by the judgment and decision of the Chamber. g. To form a code of practice to simplify and facilitate transactions of business and to frame bye-laws; rules & regulations for the officers of the Chamber to carry out various objects of the Chamber. h. To communicate with the Chambers of Commerce & Industry or public bodies within or outside Pakistan and to concert and promote measures for the protection

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of trade, commerce and manufacturers and the labour engaged therein and to remove mutual hardships. i. To purchase and construct, take on lease or in exchange, hire otherwise acquire land and building and all other property, moveable or immovable, which may be deemed necessary for the purposes of the Chamber. j. To sell, improve, manage, develop, mortgage, dispose of or otherwise deal with all or any part of the property of the Chamber. k. To borrow or raise money for the purpose of the Chamber upon such terms and in such manner as the chamber may think fit. l. To subscribe or become a member of, and co-operate with the Federation of Pakistan Chamber of Commerce & Industry, and procure from and communicate with any Chamber and Association of trade and industry such information as may be likely to forward the cause of this Chamber. m. To accept bequests, donations or subscriptions towards or to accumulate and provide a fund or endowment or wake and to invest the same and apply the income arising therefrom or to resort to the capital thereof, for any objects of the Chamber. n. To aid and to receive aid from any other society, Association, Company, Corporation, firm, Partnership or person promoting or formed or intended to promote any of the objects of the Chamber, Corporation partnership or person, with a view to obtain any advantage or benefit for the purposes of the Chamber & to subscribe to any fund or Society, as may be considered from time to time. o. To subscribe to any local or other charities and to grant donations for any public provident or superannuation fends for the employees of the Chamber or otherwise to assist any such employees of their widows and children. p. To draw, accept, bills, handiest, notes or other negotiable instrument and to invest in or operate the accounts of the Chamber with any Bank or Bankers. q. To establish a commercial & statistical Library. r. To remunerate any person or company for service rendered or to be rendered in placing or assisting to place or guaranteeing to place any debentures or other securities of the Chamber. Internship Report Page 28

s. And generally, to do all that may be necessary to attain the above objects of the Chamber directly or indirectly and to do all such other things as may be conducive to the development of trade, commerce, industry, agriculture, banking

and insurance, among the businessmen and industrialists in Pakistan and Gujranwala district in particular. 1. The income and property of the chamber, When-so-ever derived shall be applied solely towards the promotion of the objects of the Chamber as set-forth in this 2. Memorandum of association, and no portion thereof shall be paid or transferred directly or indirectly by way of dividend, bonus, or otherwise, howsoever, by way of profit to the members of the Chamber provided that nothing herein shall prevent the payment in good faith of remuneration to any member of the Chamber, or any other person in Return for any service actually rendered to the Chamber. 3. The paragraphs 4 and 9 of this Memorandum are conditions on which a license is to grant by the Federal Government the Association in the pursuance of Section 26 of the Companies Ordinance 1984. 4. Every Corporate Member, Associate Member and Town Association affiliated with the Chamber undertakes to contribute to the assets of the Chamber in the event of the same being wound up, during the time that he is a member or within one year afterwards, for the payment of the debts and liabilities of the Chamber contracted before time at which he ceased to be a member and of the costs, charges and expenses of winding up the same and for adjustment of the rights of the contributors amongst themselves, such amount as may be required not exceeding the sum due upto the date of such winding up on account of subscription. 5. If any member of the Chamber pays or receives any dividend, bonus, or other profit in contravention of the forth paragraph of this Memorandum, his liability shall be unlimited except as above the liability of the member is limited. 6. If upon winding up or dissolution of the Chamber, there remains after the satisfaction of all its debts and liabilities, any property, whatsoever, the sum shall not be paid to or distributed amongst the members of the Chamber but shall be Internship Report Page 29

given or transferred to some other institution or institutions having objects similar to objects of the Chamber which shall prohibit the distribution of its or their income and profit among its or their members to an extent as great as is imposed on the Chamber under or by virtue of the fourth paragraph thereof such institutions to be determined by the majority of the members of the Chamber at or

before the tin-default thereof by such judge of the Court in Gujranwala, as may have or acquire jurisdiction in the matter. 7. Amendments to the Memorandum of association shall be subject to the approval of the Government & shall also be made when required by the Government in public interest. 8. The jurisdiction of the Chamber will extend to the district of Gujranwala and areas as may be defined by the Federal Govt. from time to time.. Articles of Association: The Articles of Association (AoA) is the document about the internal affairs of a business. The AoA of Gujranwala Chamber of Commerce as follows; 1) The Gujranwala Chamber of Commerce & Industry, Gujranwala is established with the limited liability of members but if any member of the Chamber pays or receives any dividend, bonus or other profit, in contravention forth paragraph of the Memorandum of the Chamber his liability shall be unlimited in accordance with & subject to the provisions of the Companies Ordinance, 1984. 2) The regulation for the management of the Chamber and for observance of the members thereof & their representatives shall, subject to exercise of the statutory power of the Chamber in reference to the repeal or addition to its regulation by special resolution as prescribed by the Companies Ordinance , be such as are contained in these Articles.

Definitions
1) In the interpretation of these Articles, the following words and expressions shall have Internship Report Page 30

the following meanings unless repugnant to the subject or context. 1. "The Chamber" means the Gujranwala Chamber of Commerce & Industry. 2. '"Member" means a member of the Chamber. 3. ''Corporate Member" means a member of the Chamber which is either a body corporate or multinational corporation with its head office or branch office in Pakistan or a sales-tax registered a sales-tax-registered business concern having annual turn-over of Rs. 50 million or above. 4. "Associate Member" means a member of the Chamber which is not a Body corporate or a multinational corporation or a sales tax registered manufacturing concern or a sales-tax-registered business concern having annual turn-over of, Rs. 50 million or above; 5. '"Women entrepreneur" means a sole proprietorship where the proprietor is a female; or a partnership, where the majority partners are female(s) or an association of any kind where the majority of person forming the association are female; or a company where the majority shares are held by female. 6. "Town Association" means a Town Association, organized to represent trade, industry or tehsil, taluka or a district where there is no chamber and such Town Association shall be Chamber. 7. ''General Meeting" means the General Meeting of the Chamber. 8. "Special General Meeting" shall means and includes Extraordinary General Meeting under the Ordinance 1984. 9. The "President" means the President of the Chamber. 10. The "Vice President" means the Vice President of the Chamber. 11. “Secretary General" means an individual professional full-time employee of the Chamber who shall be incharge of th e secretariat of the Chamber and responsible for day-to-day operations of the Chamber & in his capacity as such shall be the custodian of ail record pertaining to the Chamber. 12. "Officer Bearer" means and includes the President and the Vice President. 13. "General Body" mean all members of the Chamber. 14. "Committee" means the Executive Committee of the Chamber . Internship Report Page 31

15. "Executive Committee" means the Board of Directors, the Managing Committee or any other body, by whatever name called, of the Chamber responsible for the management or conduct of the affairs of the Charr.ber. 16. “Committee Meeting" means a meeting of the members of the Executive Committee duty called and constituted. 17. “Plan of activities" means a list of proposed activities, expected financial expenditures and outcome and intended goals for the trade organization as provided in rule 25; 18. “Office" means the registered office of the Chamber. 19. "Service Rules" means the service rules framed by the Executive Committee of the Chamber, governing the terms & conditions of services etc. of the paid employees of the Chamber. 20. "District"' means the District Gujranwala. 2) For the purpose of registration, the Chamber is declared to consist of unlimited number of members. 3) The Chamber is established for the purposes expressed in the Memorandum of Association of the Chamber.

Business Place
The registered office of the Chamber shall be at Chamber Plaza, Aiwan-e-Tijarat Road, Gujranwala & the business of the Chamber shall be carried on at this place and on such other places in Pakistan as fall or may fall within jurisdiction of the Chamber. Classes of Membership There shall be following classes of members who may be either local or outstation members. Namely: a) Corporate Members b) Associate Members c) Town Association Internship Report Page 32

A body corporate or a multinational corporation with its head office or branch office in Pakistan or a sales-tax registered manufacturing concern or a sales-tax-registered business concern having annual turn-over of Rs. 50 million or above engaged in trade, commerce, manufacturing, industry, transport, banking, i nsurance, accountancy or mining or any other lawful business for profit shall be eligible for enrolment as a Corporate Member, in their conventional or corporate name provided they have their principal place of business or Head Office situated in the areas falling within the jurisdiction of the Chamber.

Associate member means a member of the Chamber which is not a body corporate or a multinational or a sales-tax registered manufacturing concern or a sales-tax-registered business concern having annual turn-over of Rs. 50 million or above engaged in trade, commerce, manufacturing, industry, transport, banking, insurance, accountancy or mining in any particular branch or these lines, also persons engaged in or connected with economics, arts, sciences or literature bearing upon trade, commerce, finance, industry, mining, manufacturing, agriculture or transport Or any other lawful business for profit provided they have their principal place of business or Head Quarter situated within the jurisdiction of the Chamber. These will be Associations organized to represent trade, industry or service in a Town, Tehsil. Taluka or a District, where there is no Chamber of its own and such Town Association shall be affiliated with the Chamber .

Rate of Annual Subscription
Any candidate for membership shall have to pay as Admission Fee and Annual Subscription according to the following rates: The membership fee chargeable from each class shall be fixed by the Executive Committee subject to approval of the General Body and Director General.

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Class of Membership

Admission Fee

Annual Subscription

Corporate Members

Rs. 300/-

Rs, 1000/-

Associate Members

Rs. 300/-

Rs. 500/-.

Town Association

Rs. 2000/-

Rs. 100/-

Accounting year of Chamber of Commerce and Industry will be closed on 30th June each year & its financial Statements are duly audited by a Chartered Accountant along with a list of members as on 30th September shall be furnished by Chamber to the Director General, Trade Organization, on or before the 31st day of December of every year. Subscription for the whole year paid in any month from April to March shall be counted for the year commencing from 1st April, and the subscription paid in any month form October to March shall be counted for the year commencing from 1st October. Renewal of Membership The membership shall be renewable on annual basis subject to fulfillment of following conditions, namely:a. Payment of prescribed subscription within the time stipulated in the memorandum, which shall not be later than be carried out by 30 Internship Report
th

3Ist of March; and for the first year the renewal shall Page 34

June 2007.

b. Proof of filing return of income tax and sales tax, if applicable, for the preceding year. Representation in the Chamber Subject to the provisions and restrictions in these Articles or any rules made thereunder the rights and Privileges of membership may, in the conventional name as a member of the Chamber, the case of a firm enrolled in Be exercised by any partner in such

firm or by any Manager or other responsible officer of such partnership, and may, in the case of a Joint Stock Company or other corporation, enrolled in their corporate name as a member of the Chamber, be exercised by a

Director, Manager, Secretary or any responsible officer of the company subject nevertheless, to the following reservations, namely; i. Partners of a firm, directors of Joint Stock Company or other corporation, must have their names

,

their managers, secretaries or other responsible

officers entitled under this

Article to exercise the rights and privileges of membership the aforesaid rights and privileges.

registered in books of the Chamber in the manner prescribed in order to exercise ii. For each act of exercise of the rights and privileges of membership by a firm, company or member, only one representative shall be recognized. iii. Unless otherwise determined by the Committee only one registered representative of the firm, company or other Corporation members shall be entitled to attend a meeting of the Chamber & take part therein. iv. A member may replace his representative at any time during the year for the purpose of Article 37 but if he is already represented on the Executive Committee or any sub Committee he shall continue to serve on it until the new Executive Committee is Internship Report Page 35

elected or the Sub Committee is reconstituted only if nomination

IS RECEIVED BY THE

Secretary General under Article 21, Subject to Article 16, provided that such a REPRESENTATIVE TO resign from the Committee or Sub-Committee at any time. Application of Membership Every application for membership shall be in the form prescribed by the Executive C o m m i t t e e accompanied with the admission fee and subscription for the first year and be forwarded to the Secretary General of the Chamber , who shall on receipt of the same, place such application on Agenda for the next meeting of the Executive Committee which shall thereupon consider such an application and accept or reject the same. In the case of acceptance the date of submission of application will be considered, as the date of enrollment as the member of the Chamber for all purposes. In no case shall the Executive Committee give any reason for rejection of the application. .. If the

Majority of the members of the Executive Committee vote against the admission , the application shall be deemed to be rejected. Cessation of Membership A member shall cease to be a member of the Chamber:  On his being adjudicated insolvent or in the case of a company or corporation; when winding up orders have been passed with regard to such company or corporation or when it has gone into voluntary winding up except for the purpose of reconstitution;'  If he fails to pay the annual subscription, at the latest by 31st March.  In the case of a firm, Joint Stock Company or other corporation upon any change being made in the name of company or corporation and the change name is not duly intimated to the Secretary General along with the failure to deposit the annual subscription for current voting year on or before 31st March. Internship Report Page 36

 On his ceasing to be qualified or eligible for membership in terms of these Articles;  In the case of an individual when he has been proved to be of unsound mind or has been convicted for an offence involving moral turpitude;  If he or she fails to comply with the requirements of Article No. 15. When an individual, firm, company or corporation has ceased to be a member of the Chamber, such individual or representative of such company or corporation shall automatically cease to be a member of Executive Committee, if he was so elected, and cease to serve as a representative of the Chamber on any public bodies. Liability to pay dues after Ceasing Any member, who, by any reason, ceases to be a member, shall nevertheless remain liable for and shall pay to the Chamber all moneys which at the time of such cessation of membership may be due from such member to the Chamber.

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Affiliation a) Any association, corporation, institution or body whose objects are similar to those of the Chamber may be affiliated with the Chamber upon such terms and conditions as the Executive Committee may deem fit. b) The Chamber shall not secure affiliation with any international or foreign body, and shall not extend invitations to any foreign organizations or individuals or accept any invitations from them. For participation in any conferences or functions to be held Pakistan or abroad, without the prior permission of the Government. Privileges of Membership Subject to the restrictions contained in the provisions of these Articles generally, or any bye-laws framed thereunder, any member, shall, among others, have the following rights and privileges: ➢ To obtain copy of the annual report and accounts; ➢ To obtain all other publications of the Chamber either free of cost or at such reduced rates as Executive Committee may from time to time decide; ➢ To have the free use of the library of the Chamber; ➢ To be present and discuss and vote at any General Meeting or any question ➢ referred to such General Meeting or to give opinion on any question referred to the general body of members by circular or otherwise; ➢ To nominate other qualified members for election or be elected to the Executive Committee or other Committee or Committees to join any deputation on behalf of the Chamber, or be elected to any office of the Chamber; ➢ To stand for election as representative of the Chamber to any public and private bodies; ➢ To seek the help of the Chamber in obtaining statistical or other information for the protection and advancement of business and to receive such particulars as may be available with the Chamber in regard to trade enquires or information regarding Internship Report Page 38

Governmental or other measures affecting the trade; To apply for the assistance of the Chamber for securing to him all reasonable facilities for the carrying on of the Business and for redress of all reasonable grievances; ➢ To see the Minutes Book of the Executive Committee meeting for which he shall have to give notice of 24 hours to the Secretary General and seek his permission or he shall have to obtain the permission of the President in writing. Registration Any member withdraw from the Chamber by giving one month's notice in writing to the Secretary General of his intention to do so and upon expiration of the notice, such member shall cease to be a member of the Chamber subject to Article no. 18. Administration The Administration of the affairs of the Chamber shall be vested in a body called the Executive Committee herein referred to as the Committee. Composition of the Executive Committee Composition of Executive Committee points; a) The Executive Committee of the Chamber shall comprise persons elected by the General Body from amongst its members, subject to the following, namely:b) There shall be maximum thirty seats of Executive Committee. c) At least fifty per cent of the members of Executive Committee shall be from the corporate class, d) The Electoral College for each class of members of Executive Committee shall be the member of General body from the respective class. e) In addition to the seats provided in clause (a), the immediate past President shall be an ex-officio member of the Executive Committee without voting right. i. There shall be two seats of Executive Committee reserved for women entrepreneurs for which the Electoral College shall be the Executive Committee. Internship Report Page 39

ii. There shall be one seat reserved for nominee of each Town Association affiliated with the Chamber, iii. If any seat reserved for any of the stipulated categories remains vacant, it shall

Not be filled with members from other category: provided that any seats remaining vacant in any category shall not be counted towards determination of quorum. iv. In the General Body comprises at least fifty per cent members from Associate Class; there shall be rotation of office of President between the Associate and Corporate Members. v. Where there is rotation of office of the President, the President and Vice-President shall not be from the same class of members. . vi. Where there is rotation of office of the President, the President and Vice-President shall not be from the same class of members. . vii. Office bearers of the Chamber shall be elected by the Executive Committee from amongst its members. viii.The tenure of all elected office bearers shall be one year. ix. The tenure of members of Executive Committee shall be two years subject to the following' a) 50 or fifty per cent members of the Executive Committee shall retire every year . b) After the first election of the Executive Committee a draw shall be made to determine, the fifty percent members who shall retir e after expiry of first year. i. The tenure of office bearers of Executive Committee shall be one year. On completion of the term the office bearers and members of Executive Committee shall not be eligible to contest election or co-option in any representative capacity in the Chamber for the next one year Office Bearer & their Election 1) Chamber shall comprise of a President and a Vice-President who shall be elected from the Executive Committee of the Chamber. 2) The tenure of all elected office bearers shall be one year. Internship Report Page 40

3) On completion of the term the President, Vice-President shall not be eligible to contest election or co-option in any representative capacity in the Chamber for the next one year.

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Casual Vacancy Casual vacancies of members shall be filled by co-option by the Executive Committee from amongst the class of membership to which the out-going member belonged. Those of the Vice President shall be filled the Executive Committee by election from amongst its existing members and the resultant vacancy of the member shall be filled by co-option from amongst the members otherwise eligible to be elected. Provided that no such vacancy shall be filled under this clause during the first 90 days as well as 270 days after the holding of the annual election. On retirement from the Committee, the retiring representative or his firm acting through any other representative shall not be eligible to stand for election to the Committee for the next one annual term. Edibility to Vote  The eligibility of a member of the Chamber to vote at the elections of the Chamber shall be subject to following conditions;  the member has completed two years of valid membership of the Chamber as on the date of announcement of election schedule by the Executive Committee of the Chamber; and he has member fulfilled the conditions of membership and renewal thereof of the Chamber.  Every member eligible to vote shall deposit with the Secretary General, the specimen signature card along with photograph indicating the status in the firm, company or concern. The right to vote shall allow only to proprietor, partner or the director of the member firm or company, or a person not below the rank of General Manger authorized by the Board of Directors of a public limited company, private limited company or a multi-national as the case may be.  The proprietor or, partner or director of the member firm or company, concern or a person not below the rank of General Manger authorized by the Board of Directors Internship Report Page 42

of a public limited company, private limited company or a multi-national shall be entitled to cast vote at the time of election only if such person has already been registered with the Secretary General and his name appears on list of Voters.

Appointment of Election Commission 1) The Executive Committee of the Chamber shall appoint an election commission subject to the following conditions: 2) The Executive Committee of the Chamber shall appoint an election commission subject to the following conditions: 3) the commission shall comprise of three members; 4) the members so appointed have submitted their consent in writing to their appointment as such; 5) the members of the commission, so appointed, have not held any office of the Chamber for the proceeding two years; the members of the commission shall not be entitled to become a candidate in the election , they are conducting; 6) the members of the commission shall he independent, impartial and non-partisan; and 7) The members of commission shall not canvass for any of the candidates or panels consenting the election, they are conducting. Functions of Election Commission  The election commission shall be incharge of all arrangements connected with the conduct of elections including but not limited to;  Appointment of polling staff;  Ensuring display of the tentative voters' list by the Secretary General for the purpose of inviting objections;  Elimination of and decision on the objections received on the voters' list; and  Supervision of polling process and ensuring that the polling has been conducted in an orderly, peaceful, transparent and fair manner in accordance with the provisions of

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the memorandum & articles of association & instructions of the Federal Government or the Director General in this regard; &  Counting of votes &announcement of results.

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Election Procedure The election of the Chamber shall be conducted according to the law & procedure laid down in Articles of Association subject to the following:The polling shall be held simultaneously at the head office, regional offices or where the number of voters exceeds fifty at the branch offices of the Chamber: Provided that where for want of space in the office premises it is not possible to establish the polling booths, the polling shall be held in a public place such as a community hall or hotel. The Election Schedule of the Chamber shall be approved by the Executive Committee of the chamber &. The Completion process, for the conduct of the same between 1st of July to 30th of September of each calendar year. The Executive Committee shall affect its approval and within ten days of its approval having taken place not later than the first half of July .shall is issued by the Secretary General. The Secretary General of the Chamber shall display within seven days of the schedule the provisional list of all members eligible to vote along with their national tax number, sales tax registration number, if applicable, the name and national identity card number of their representative shall be displayed at:  the notice board of the head office and regional offices of the Chamber; and  The website of the Chamber.  The members who have any objection to the entries in the list of voters shall send their objections in writing to the Secretary General within seven days of the issuance of the voters' list.  The Secretary General will intimate action on the objections or changes sent by members within five days from the last day under preceding clause.

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 Any person aggrieved by the decision of the Secretary General may make a representation, within 3 days to the election commission, which shall decide the case within 3 days.

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Within three days of decision by the Commission or in case the Commission fails within stipulated time, any person aggrieved by the decision of the Commission may appeal to Director General who shall decide the case within 10 days and his decision in this regard shall be final. Within two days of the decision of the Director General the final voter's list shall be: 1) Displayed at the notice board of the head office and regional offices of the Chamber. 2) displayed at the website of the Chamber; and 3) Submitted to the Director General: Provided that if no appeal has been filed to the Director General, the final list of voters shall be displayed within 15 days of the decision of the election commission. Within 4 days of the display of the final list of voters, any person who is eligible to contest the election for the vacant post, shall send his nomination duly proposed and seconded by a duly registered voter & signed by the candidate to the Secretary General on the prescribed form in accordance with the Article of Association or rules of the Chamber. Within 24 hours of receipt of nomination papers, a copy of the final list of voters shall be provided to each contesting candidate. The nomination paper shall be scrutinized by the commission and list of candidates shall be displayed within 24 hours of the last date of receipt of nomination papers. The objections, if any, to the nomination of the candidates can be filed to the election commission within 24 hours of issuance of the list of candidates, which shall be decided by the election commission within two days. Within two days of the decision of the Commission fails to decide within stipulated time, any person aggrieved by the decision of the Commission may appeal to Director General, who shall decide the case within 7 days and his decision in this regard shall be final. Internship Report Page 47

Within two days of the decision of the Director General the Commission shall issue the final list of candidates: provided that if no appeal has been filed to the Director, the final list of candidates shall be issued within 11 days of the decision of the election commission. Within five days of display of final list of candidates, the poling for election of members of Executive Committee shall be held. Within 2 days of the poling any person elected as members of the Executive Committee, shall send his nomination for election as office bearers duly proposed & seconded by an elected Executive Committee members & signed by the candidate to the election commission. The nomination paper shall be scrutinized by the commission and list of candidates shall be displayed within 24 hours of the last date of receipt of nomination papers. Within 2 days of display of final list of candidates, the poling for election of office bearers shall be held. The final result of the election of members of Executive Committee and office bearers announced at the annual general meeting of the Chamber called for this purpose within 15 days of the date of poling under the preceding clause but not later than 30 th of September of the Calendar year. 1) The final election results announced in the annual general meeting shall be: 2) displayed at the notice board of the head office and regional office of the Chamber 3) displayed at the website of the Chamber within 2 days and 4) Submitted to the Director General within 7 days.

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After learning a lot of information from Membership department, I ha Gujranwala Chamber of Commerce & Industry, I have spent my second last week in accounts department. An accountant performed the accountant as well as accounting & cashier jobs. He has shared his working with me & see me all the vouchers & invoices & also the way to enter them in the records or journal or Leaders of the GCCI. In the last week of internship I have spent my time at Computer Cell & check the network where the records or information about Gujranwala Chamber of Commerce & Industry, & how the maintain & support the Gujranwala Chamber of Commerce & Industry, web sites content. I have also observed how the data process is support the activity of the Gujranwala Chamber of Commerce & Industry.

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Financial Analysis
Financial Analysis means Financial Statement Analysis. Financial statement analysis is basically is the process of examining relationships among financial statement elements and making comparisons with relevant information. It is a valuable tool used by the users of Financial Statements like, investors and creditors, financial analysts, and others in their decision-making processes related to stocks, bonds, and other financial instruments. The goal in analyzing financial statements is to assess past performance & current financial position and to make predictions about the future performance of a company. Different users like, Investors who buy stock are primarily interested in a company's profitability and their prospects for earning a return on their investment by receiving dividends and/or increasing the market value of their stock holdings. Creditors and investors who buy debt securities, such as bonds, are more interested in liquidity and solvency: the company's short-and long-run ability to pay its debts. Financial analysts, who frequently specialize in following certain industries, routinely assess the profitability, liquidity, and solvency of companies in order to make recommendations about the purchase or sale of securities, such as stocks and bonds. Analysts can obtain useful information by comparing a company's most recent financial statements with its results in previous years and with the results of other companies in the same industry.

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Financial Statements of GCCI:

The Gujranwala Chamber of Commerce & Industry Statement of Financial Position
Non Current Assets 2009 Rs
10,365,000.23 278,841.00

2008 Rs
6,470,811.20 242,841.00

2007 Rs
6,697,904.22 242,841.00

Operating Fixed Deferred Costs

Total Non Current

10,643,841.23

6,713,652.20

6,940,745.22

Current Assets
Advances, Deposits Stationery Stock Receivables Cash & Bank Balances Total Current Assets Total Assets 5,351,821.00 93,505.00 1,100,079.00 3,767,717.39 10,313,122.39 20,956,963.62 4,587,287.61 85,320.00 1,343,048.00 10,195,760.82 16,211,416.43 22,925,416.43 4,238,979.00 75,950.00 1,244,454.00 9,685,505.10 15,244,888.10 22,185,633.32

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Capital&Liabilities

Capital Fund

20,635,193.62

22,708,644.63

21,924,405.32

Current Liabilities

Accrued & Payable Expenses

321,770.00

216,424.00

261,228.00

Statement of Financial Performance:

The Gujranwala Chamber of Commerce & Industry Statement of Financial Performance
Particulars 2009 Rs 2008 Rs 2007 Rs

10,311,997.68

10,620,421.88

10,204,367.00

Administrative Exp Surplus / (Deficit) Capital Fund b/f

12,365,448.69 (2,053,451.01) 22,708,644.63

9,836,182.57 784,239.31 21,924,405.32

8,924,870.56 1,279,505.44 19,225,678.88

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Total Donations

20,655,193.62

22,708,644.63 -

20,505,184.32 600,000.00

(20,000.00) 20,635,193.62

Prior Period Adjustment Capital Fund c/f

22,708,644.63

819,221.00 21,924,405.32

Types of Financial Analysis: Following are the different types of financial statement analysis: ➢ Horizontal Analysis, ➢ Vertical Analysis, ➢ Ratio Analysis, ➢ DuPont Analysis, & ➢ Altman Z-Score In the financial Analysis of Gujranwala Chamber of Commerce & Industry a have done the analysis of three primary types of Financial Statement Analysis; 1. Horizontal Analysis, 2. Vertical Analysis, & 3. Ratio Analysis Horizontal Analysis: Horizontal analysis refers to the comparison of financial statement data of a company for several years. It is used to evaluate the trend in accounts over the years. This analysis considers changes in items of financial statement from a base year to the following years to show the direction of change. This is also called “Dynamic Analysis”, as it based on data from year to year rather than data of one year. In this, the figures of various years are placed

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side by side in years are placed side by side in adjacent columns in the form of comparative financial statements. Under this I prepare Comparative Balance Sheet or Statement of Financial Position & Comparative Income Statement or Statement of Financial Performance.

Comparative Statement of Financial Position:

Gujranwala Chamber of Commerce & Industry Comparative Statement of Financial Position As at 2009, 2008 & 2007
Non Current Assets
2009 Rs 2008 Rs 2007 Rs Changes 2009-08 % Changes 2008-07 % (3.39)

Operating Fixed Deferred Costs

10,365,000.23

6,470,811.20

6,697,904.22

60.18

278,841.00

242,841.00

242,841.00

14.82

-

Total Non Current Current Assets Advances, Deposits Stationery Stock Receivables

10,643,841.23

6,713,652.20

6,940,745.22

58.54

(3.27)

5,351,821.00

4,587,287.61

4,238,979.00

16.67

8.22

93,505.00

85,320.00

75,950.00

9.59

12.34

1,100,079.00

1,343,048.00

1,244,454.00

(18.09)

7.92

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Cash & Bank Balances Total Current Assets Total Assets

3,767,717.39

10,195,760.82

9,685,505.10

(63.05)

5.27

10,313,122.39

16,211,416.43

15,244,888.10

(36.38)

6.34

20,956,963.62

22,925,416.43

22,185,633.32

(8.59)

3.33

Capital&Liabilities

Capital Fund

20,635,193.62

22,708,644.63

21,924,405.32

(9.13)

3.58

Current Liabilities

Accrued Expenses

&

Payable

321,770.00

216,424.00

261,228.00

48.68

(17.15)

Interpretation Statement of Financial Positions: The Horizontal analysis of 2009-08 is compared to the previous year’s figures. As the total non current assets are significantly increase by 58.4% as compared (3.27%) of GCCI but Cash & Bank balances of the GCCI are significantly decreased by 63.05% as compared to 5.27% of the 2007-08 comparison & The current assets are decreased by 36.38% as compared to positive 6.34%. The overall total assets of the GCCI are also decreased in 200809 as compared to previous year. The Capital fund which is funds used for all the purposes of GCCI is also reduced by 9.13% as compared to the previous year which is 3.58% positive. The Liabilities of the GCCI is also increased significantly increased by 48.68% as compared to 17.15%. So, the

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more significant fluctuations in 2009-08 show that the performance of this is very poor as compared to last year.

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Comparative of Financial Performance:

Gujranwala Chamber of Commerce & Industry Comparative Statement of Financial Performance For the Year Ended 2009, 2008 & 2007
Particulars 2009 Rs 2008 Rs 2007 Rs Changes 2009-08 %
(2.90)

Changes 2008-07 %
4.08

10,311,997.68

10,620,421.88

10,204,367.00

Administrative Exp Surplus / (Deficit) Capital Fund b/f Total Donations

12,365,448.69 (2,053,451.01) 22,708,644.63 20,655,193.62

9,836,182.57 784,239.31 21,924,405.32 22,708,644.63 -

8,924,870.56 1,279,505.44 19,225,678.88 20,505,184.32 600,000.00 -

25.71 (361.84) 3.58 (9.04)

10.21 (38.71) 14.04 10.75 (100.00)

(20,000.00) 20,635,193.62

Prior Period Adjustment Capital Fund c/f

22,708,644.63

819,221.00 21,924,405.32

(9.13)

(100.00) 3.58

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Interpretation Statement of Financial Performance: The Horizontal Analysis of the statement of finical performance of 2009-08 is poor as compared to the figures of 2008-07. As the income in this year is decrease, as compared to previous year (2.90%) as compared to 4.08%. the administrative expenses of 2009-08 is significantly increase as compared to the year 2008-07. The total capital fund of GCCI is also decrease by (9.04%) which is positive 10.75%. this is not a good sign the funds of the GCCI is reduced, this can create a greater trouble for GCCI, if these are not increase in the next year. Vertical Analysis: Vertical Analysis refers to the study of relationship of various items in the financial statement of one accounting period. It means an analysis that displays all items as percentages of a common base figure like Sales in Income Statement & Total Assets in Balance Sheet. All other accounts on the financial statement are compared to it. In the balance sheet, for example, total assets equal 100%. Each asset is stated as a percentage of total assets. Similarly, total liabilities and stockholders' equity are assigned 100% with a given liability or equity account stated as a percentage of the total liabilities and stockholders' equity. For the income statement, 100% is assigned to net sales with all revenue and expense accounts related to it. . This is also called “Static Analysis”, as it based on data of one year only rather than data from year to year. Under vertical analysis, the statements showing the percentages are referred to as Common Size Financial Statements.

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Common Size Statement of Financial Position:

Gujranwala Chamber of Commerce & Industry Common Size of Financial Position As at 2009, 2008 & 2007
Non Current Assets 2009 % 2008 % 2007 %

Operating Fixed Assets

49.46

28.23

30.19

Long Term Deposits, Prepayments & Deferred Costs

1.33
Total Non Current

1.06 29.28

1.09 31.28

50.79

Current Assets
Advances, Deposits & Prepayments

25.54 0.45 5.25 17.98 49.21

20.01 0.37 5.86 44.47 70.71

19.11 0.34 5.61 43.66 68.72 Page 59

Stationery Stock

Receivables

Cash & Bank Balances

Total Current Assets

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Total Assets

100.00 Capital&Liabilities

100.00

100.00

Capital Fund

98.46 Current Liabilities

99.05

98.82

Accrued & Payable Expenses

1.54 Interpretation Statement of Financial Positions:

0.94

1.18

The Vertical analysis of 2009, 2008 & 20007 is compared to the previous year’s figures. As the total non current assets are significantly increase by 50.79% as compared 29.28%these are reduce in 2008 but now significantly increase show a good sign for GCCI. But Cash & Bank balances of the GCCI are significantly decreased by 19.98% as compared to 44.47% of the 20008 comparison & the current assets are decreased by 49.21% as compared to positive 70.71% which is increase from previous year but great fall again. The overall total assets of the GCCI are also decreased in 2008-09 as compared to previous year. The Capital fund which is funds used for all the purposes of GCCI is also reduced by 98.46% as compared to the previous year which is 99.05% positive. The Liabilities of the GCCI is also increased significantly increased by 1.54% as compared to 0.94%. So, the more significant fluctuations in 2009show that the performance of this is very poor as compared to last year.

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Common Size Statement of Financial Performance:

Gujranwala Chamber of Commerce & Industry Common Size of Financial Performance As at 2009, 2008 & 2007
Particulars 2009 % 2008 % 2007 %

100.00

100.00

100.00

Administrative Expenses

119.91 (19.91) 220.22 200.30 (0.19) 200.11

92.62 7.38 206.44 213.82 213.82

87.46 12.54 188.41 200.95 5.88 8.03 214.85

Surplus / (Deficit) for the year

Capital Fund b/f

Total

Donations

Prior Period Adjustment

Capital Fund c/f

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Interpretation Statement of Financial Performance: The Vertical Analysis of the statement of finical performance of 2009, 2008 is poor as compared to the figures of 2007. The administrative expense of GCCI is significantly increase as compared to the year 2007 in 2009 & goes to 119.91% increase from 87.46%. The total capital fund of GCCI is also decrease by 200.11% which is 213.82% in the last year & 214.85 in 2007. This is not a good sign the funds of the GCCI is reduced, this can create a greater trouble for GCCI, if these are not increase in the next year. Ratio Analysis: Financial Ratios are like financial temperatures, which give the state of the health of a business. This analysis technique is most widely used. It is the only mean of better understanding of Financial Strength & Weakness. It can be divided in different Categories like;  Liquidity Ratios  Activity Ratios  Debt Ratios  Profitability Ratios  Market Value Ratio Liquidity Ratios: Liquidity Ratios are used to measure a firm’s ability to meet short-term obligations. They compare short-term obligations to short-term (or current) resources available to meet these obligations. From these ratios, much insight can be obtained into the present cash solvency of the firm and the firm’s ability to remain solvent in the event of adversity. Under this, I calculate following Ratios of Gujranwala Chamber of Commerce & Industry;

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Current Ratio: Current Ratio = Current Assets / Current Liabilities For 2009 Current Ratio = 10,313,122.39 / 321,770.00 = 32.05 For 2008 Current Ratio = 16,211,416.43 / 216,424.00 = 74.91 For 2007Current Ratio = 15,244,888.10 / 261,228.00 = 58.36 Interpretation: The rule of thumb is 2:1, as in 2009 company has Rs/32.05 to pay its Rs.1 liability however the company has Rs/74.91 & Rs/58.36 in 2008 & 2007. As it is reduce as compared to previous years, it is unfavorable for GCCI. Absolute Quick Ratio: Absolute Quick Ratio = Absolute Liquid Assets / Current Liabilities Absolute Liquid Assets = Cash & Bank Balances For 2009 Absolute Quick Ratio = 9,685,505.10 / 321,770.00 = 11.71 For 2008 Absolute Quick Ratio = 10,195,760.82 / 216,424.00 =47.11 For 2007 Absolute Quick Ratio = 3,767,717.39 / 261,228.00 = 37.08 Interpretation: The Absolute Quick Ratio of GCCI is 11.71 in 2009 which is significantly decreased from the previous years, as in previous it is 47.11 & 37.08 in 2008 & 2007 respectively. It is also unfavorable of GCCI.

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Activity Ratios: Activity ratios are calculated to measure the efficiency with which the resources of the firm have been employed. These ratios are also called “TUROVER RATIOS”

because these ratios indicate the speed with which assets are being turned over into sales. Following ratios are calculated under this head of GCCI;  Debtor Turnover  Average Collection Period  Total Assets Turnover  Non Current Assets Turnover  Current Assets Turnover Debtor Turnover: Debtor Turnover = Sales or Income / Average Receivables For 2009 Debtor Turnover Ratio = 10,311,977.68 / 1,771,603.00 = 5.82 times For 2008Debtor Turnover Ratio = 10,620,421.88 /1,965,275.00 =5.40 times For 2007 Debtor Turnover Ratio = 10,204,376.00 / 1,915,978.39 = 5.33 times Interpretation: The Debtor Turnover Ratio of GCCI is increased in 2009 which is 5.82 times as compared to previous years, which are 5.40 times & 5.33 times in the 2008 &2007 respectively. Average collection period: Average collection period = No. of days in Year / Debtor Turnover For 2009 Average collection period = 360 / 5.82 = 62 days Internship Report

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For 2008 Average collection period = 360 / 5.40 =67 days For 2007 Average collection period = 360 / 5.33 = 68 days

Interpretation: The average collection period shows after how many days the company accounts receivables convert into cash. The current results shows that company has improved as in current year average collection period is 62 days which are less then previous years figures of 67 days in 2008 & 68 days in 2007. Total asset turnover: Total asset turnover = sales / total assets For 2009 Total Assets Turnover Ratio = 10,311,977.68 / 20,956,963.62 = 0.49 times For 2008 Total Assets Turnover Ratio = 10,620,421.88 /22,925,068.63 =0.46 times For 2007 Total Assets Ratio = 10,204,376.00 / 22,185,633.32 = 0.46 times Interpretation: In 2009 the company has a healthy turnover of assets into sales, show the management efficiency to convert its total assets into sales. In 2009 it is 0.49 times as compared to 0.46 times of both 2008 & 2007. Non Current asset turnover: Non Current asset turnover = sales / non current assets 2009 Non Current asset Turnover Ratio = 10,311,977.68 / 10,643,841.23 = 0.97 times 2008 Non Current asset Turnover Ratio = 10,620,421.88 / 6,713,652.20 =1.58 times 2007 Non Current asset Turnover Ratio = 10,204,376.00 / 6,940,745.22 = 1.47times Internship Report Page 65

Interpretation: In 2009 the company has non current assets turnover of 0.97 times which as lower than previous years of 2008 1.58 times & in 2007 1.47 times. This shows GCCI has not efficiently utilized its non current assets in 2009.

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Current Asset turnover = sales / current assets For 2009 Current Turnover Ratio = 10,311,977.68 / 10,313,122.39 = 1.00 times For 2008 Current r Turnover Ratio = 10,620,421.88 /16,211,416.43 = 0.66 times For 2007 Current Turnover Ratio = 10,204,376.00 / 15,244,888.10 = 0.67 times Interpretation: In 2009 the company has current assets turnover of 1.00 times which as greater than previous years of 2008 0.66 times & in 2007 0.67 times. This shows GCCI has efficiently utilized its current assets in 2009.

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SWOT Analysis
The Strengths -Weaknesses Opportunities-Threats (SWOT) analysis is also named as The Threats-Opportunities-Weaknesses-Strengths (TOWS) analysis. A SWOT Analysis is a strategic planning tool used to assess the Threats, Opportunities and Strengths, Weaknesses, involved in a business venture or in any other situation requiring a decision. The most difficult part of SWOT Analysis is to match internal and external factor. Once the objective has been identified, SWOT are discovered and listed. SWOT analysis is defined precisely as follows: Strengths & Weaknesses are linked with internal environment. Opportunities & Threats are linked with internal environment.

Strengths and weaknesses are internal factors. The strength could be your specialist marketing expertise. A weakness could be the lack of a new product in the market. Opportunities and threats are external factors. An opportunity could be a developing distribution channel such as the Internet, or changing consumer lifestyles that potentially increase demand for a company's products.

A threat could be a new competitor in an important existing market or a technological change that makes existing products potentially obsolete. It is significant of pointing out that SWOT analysis can be very subjective - two people rarely come-up with the same description of a SWOT analysis even when given the same information about the same business and its environment. Internship Report Page 68

Being an internee at GCCI, I have observed the following Strengths, Weaknesses, Opportunities, & Threats: Strengths: These are attributes of the organization that are unique & are helpful to attain the objective of the organization. Following are the elements; GCCI Support & Promote Trade Activities: Gujranwala Chamber of Commerce and Industry is efficiently or effectively support, promote the trade & industry activities of Gujranwala District. GCCI can take all the steps which are necessary for the promotion of trade, commerce & industry through Seminars or exhibitions in the GCCI. Top Management Commitment: GCCI’s top management is the Executive Committee, who is the combination of both experienced & young energetic professional which are proving to be the real strength of GCCI. This top management also includes the Director General. The main motive of all the members of Executive Committee & Direct General is towards the support & full commitment of all the trading activities in Gujranwala. Effective Communication at GCCI: Gujranwala Chamber of Commerce and Industry has very good relation among different departments, coworkers, colleagues and subordinates. This good relationship can leads towards the effective communication between different departments, coworkers, colleagues & subordinates.

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Infrastructure of GCCI: The infrastructure of the GCCI is very attractive, which creates a good image in the mind of visitors or outsiders. The infrastructure of GCCI has improved very much over the years & still all the President can spend many funds every year to improve it further. Sign of Quality: GCCI has implemented ISO 9000 standard, which is a sign of Quality at very level of organization & clarity in its internal processes. This creates a great image as ISO certified Company has a great influence on the outsiders or foreign countries. That’s way GCCI has a strong trade and industry monitoring and controlling position in the market. Maintenance of Vital Statistical Records: Gujranwala Chamber of Commerce and Industry has a Library which has maintained vital statistics records & this library is the main requirement in for every Chamber. The different department of GCCI like Membership Department has also maintained statistical records for long term in order to avoid any ineffective operations. Weaknesses: These are attributes of the organization that are harmful to the achievement of its objective. Following are some points which I have observed under this head; Non Segregation of Duties: In the Accounts department of GCCI which is a very crucial department. Only one person an Accountant is done both jobs of “Cashier & Accountant”, this is very harmful for a business that a single person can issue cash & also record that cash, so he can record anything as there is no supervision or control over Accountant.

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Planning of different Events of GCCI beyond its Control: All the plans and their implementation made through Ministry of Commerce & Federation of Chambers. The GCCI has a member is bound to follow all of their requirements. Although these plans in his favor or not, the implementation of those is compulsory on GCCI. GCCI has not required Staff: The GCCI has also facing Staff problems, in R & D cell only Director General of R & D cell is work for this cell. He required a handsome staff in order to conduct research projects, make making fortnightly bulletin in order to give proper guide & support to the members of GCCI. Opportunities: These are external conditions or factors that are helpful to the achievement of its objectives. Following are the Opportunities for GCCI; Introduce new Departments: GCCI has enough capacity or space as it own the whole Chamber Plaza, they have just four departments, GCCI has a bigger opportunity to introduce or add or expand its departments, like any one or two departments in to promote & effectively discharge its services , 1. Community Development and Communication 2. International Relation 3. Finance and Business Strategies 4. Industrial Development 5. Chamber Logistic Center Internship Report Page 71

6. Health & Medical Science 7. Chamber Science and Technology Center 8. Islamic Medicine

9. Economic Development 10. Inter Industry Relations 11. Joint Ventures and Foreign Investment 12. Education and Training 13. Governmental Affairs No Competitor: Gujranwala Chamber of Commerce & Industry has greatest opportunity to expand its operations as it has no Competitors in Gujranwala. It is the only company to support the trade & business activities in Gujranwala. So, if the management of the company can go towards its operations. Innovations through Utilization of R & D Cell: Gujranwala Chamber of Commerce & Industry create many facilities through Research & Development & try to produce more innovative ideas or alternative of rare or scarce resources in order to satisfy the existing members & also try to crate opportunities in Gujranwala that more & more people can start works or start their businesses or companies, & so, GCCI can increase its members through this. Commencement of Mega Project for Infrastructure of District: Gujranwala Chamber of Commerce & Industry has convenience the Government to start different mega projects for the improvement of infrastructure of Gujranwala, as in order to create different jobs to overcome the unemployment in the Gujranwala through the “Capital Fund” of GCCI & Government Grant. Internship Report Page 72

Threats: These are external conditions that are harmful to the achievement of the objective. I have observed the following threats; Unstable Economic Conditions: Gujranwala Chamber of Commerce & Industry has faced many threats from unstable economic conditions in Pakistan, which is a big hurdle in the promotion of trade & business activities in Gujranwala. As people are hesitate to invest. The international trade of imports & exports are highly affected from these uncertain conditions. Uncertain Political Conditions: Gujranwala Chamber of Commerce & Industry has very much effected due to uncertain political environment in Pakistan, this will also heart the trade & business activities in Gujranwala as the uncertain economic conditions in Pakistan. Higher Cost of Capital: Gujranwala Chamber of Commerce & Industry has threat of reducing its members due to High Cost of Capital due to the following factors;  Inflation  Electricity crisis  Gas Load Shading  High Prices of Inputs Internship Report Page 73

 Many other factors

This is a big threat for GCCI has lost many of its members every year. If these costs are not controlled no one can take initiate to start new business is also a threat for GCCI, as having no more members. Uncertain Economic Polices & Regulations of Government: Gujranwala Chamber of Commerce & Industry is also badly affected due to uncertain economic policies and regulations of government, like involvement of Political Factors & change in Government can change the policies.

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Recommendations
After conducting the SWOT analysis of GCCI, I am in a position to recommend the factors, which are those if GCCI management can properly apply these factors, the weakness & threats are converted into strengths & opportunities: Segregation of Duties: I recommend to GCCI management to segregate duties & only one person can do one job & he has a superior or supervisor to inspect his work. In GCCI the accountant is not fit for accountant as well as cashier. There should be separate person for each post in order to prevent from frauds. Hire the Required Staff: I recommend to GCCI management the competent staff for R & D cell. If GCCI, wants to promote the industry research work they have to hire the required staff. It is not possible that only a single person Director General of R &D can handle or conduct the work of research of different industries in Gujranwala. This job or work required a handsome amount of employees who gather the data of different industries, identifying the problems & try to solve those problems of the different industries through research. GCCI Introduce New Departments: I recommend to GCCI management to properly utilize his capacity by adding or introducing new departments in order to promote the trade & industry from the capital fund of GCCI. They have enough space; it should be very beneficial for the members of GCCI, if GCCI can introduce new departments which are present in other districts or cities of Pakistan.

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New Industrial Zone: I recommend to the GCCI management to connivance or approve a scheme of new industrial zone to Ministry of Commerce, to provide facilities to start the new business. This scheme can promote the industry of Gujranwala, & provide many job opportunities to the graduates of the Gujranwala.

Conclusion
At the end, I conclude that the Gujranwala Chamber of Commerce & Industry is engaged in the promotion of trade & industry is a good organization. During my internship at GCCI, I have observed that, the company has providing facilities of membership about 7000 business either sole proprietor, partnership or company or body corporate. It provide numerous benefits to its members, but now it has faced many challenges in the industrial sector due to energy crisis, political & other challenges which become the grater hurdle in the way to promote the industries smoothly. During internship I did the research work in R & D cell & make the Country profile of five countries, I have highlight the economic conditions & trade or top ten import &export from these countries in Pakistan. In R & D cell I have also assist the Director General of R & D in making the news bulletin of GCCI. I have also spent some time in other departments of GCCI gain the practical experience of those departments. During work in membership department, membership officer has given me the Memorandum of Analysis & Articles of Associations, through these documents; I have understood all the working & their procedures. I have learned a lot of practical experience during the internship. In this report after the SWOT analysis of GCCI, I have recommended some factors; if GCCI can implements those factors the weakness or threats of GCCI are converted into Strengths or Opportunities.

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Bibilography
Gitman, J., 2009. Principles of Managerial Finance. 10th ed. Chennai: Pearson Education, Inc. pp 42-73 David,- R., 2008.Strategic Management. 11th ed. Chennai: Pearson Education, Inc. pp 122146

GCCI, no date. Contact Us. [Online] Available at: < http://www.gcci.org.pk/> [Accessed 10 August 2010, 8:10 A.M] Highlandschamber, no date. Vision & Mission Statements. [Online] Available at: < http://www.highlandschamber.org/mission/> [Accessed 03 August 2010, 09:10P.M] Lagoschamber, no date. Profile of the Logas Chamber of Commerce & Industry. [Online] Available at: < http://www.lagoschamber.com/mission.php> [Accessed 15August 2010, 10:10 A.M] LCCI, no date. Profile of chamber. [Online] Available at: < http://www.lcci.org.pk/> Internship Report Page 77

[Accessed 01 August 2010, 05:10P.M] The Gujranwala Chamber of Commerce & Industry, 2008. annual report 2007-2008, Gujranwala: AJM Printers

The Gujranwala Chamber of Commerce & Industry, 2009., annual report 2008-2009, Gujranwala: AJM Printers

Glossary
B Bye-Laws: A rule made by a company to control the actions of its members.

C
Co-Option: The freedom or right to choose Counterfoils: The part of a piece that is kept as a record by person issuing it.

D
Delegation: The action or, Process of Delegating. Dignitaries: Internship Report Page 78

A person holding highly rank or office Directories: The persons incharge of an organization.

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E
Electoral: Relating to election

F
Facsimile: An exact copy especially written

R
Repugnant: Incompatible with

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Annexure
I have attached the Following Document of GCCI;  Certificate of Origin  Membership Application Form  Application Form For Visa Recommendations  Application for Chamber’s Membership ID Card  Application for Renewal of Membership ID Card

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