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Acknowledgement
I am highly grateful of Allah Almighty who gave me power to complete the

internship and this report. I am also thankful to my teachers of IBIT for their

guidance and support. I am also thankful to my parents and brother for

giving me support to complete my MBIT without their support I would not

able to complete my studies.

I am also appreciative to the management of Metro Hi-Tech (pvt.) Ltd. for

giving me a chance to complete my internship there. I am also thankful to

staff of the Metro who gave full support to learn especially Mr. Usman Riaz

the Finance Officer at Metro, then Mr. Abdul Rehman the AFM and Mr. Atif Zia

for guiding me during the internship. They trusted me and gave me crucial

work to do and gave me a chance to work independently.

Mateen Yunas
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Executive Summary
Metro Hi-Tech (pvt.) Ltd. was established by "YUNAS" Group of Industries in

1973, incorporated as a Private Limited Concern on 7th October 1985. I

entered into the business of motorcycle in 2003. Metro is a private limited

company. Its main products are motorbikes that are MR-70 and MR-125.

Company wants to be remained in the business whatsoever the

circumstances are. It wants to meet the customer satisfaction as well as the

number one motorcycle company of the Pakistan in the future. Its business

volume is increasing with a good ratio each year i.e. in 2007-2008b its sale in

units was around 17000 and in 2008-2009 its sale in units is almost is 22000.

Metro has a functional organizational structure. It has eight departments.

Finance department is one of those where I completed my internship.

Metro’s marketing department is very strong as it has good product design

compared to competitors, excellent after sale service.

I did my six week internship at Metro hi-Tech (pvt.) Ltd. First five week I

spend in Finance department and the remaining one week with the Accounts

department. In finance department I perform the function of reporting on

Excel, Bank reconciliation, bank register maintaining, sales invoice and sales

tax invoices edition, check filling, check dispatching etc. But my main focus

was on reporting and bank reconciliation. While in the Accounts department I


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just got the knowhow of the work. During the internship MS Excel helped me

a lot. By using my skills in Excel I created the reports in minimum possible

time. The technique that I used for this purpose was pivot table.

I learned many new concepts and skills that are as MS Excel’s related new

techniques, how reporting is performed, the software of Metro Power

Accounting, handling of checkbooks and maintaining the bank’s manual

register, issuing checks and performing their dispatch process, sales tax

payment concept and some little but important things.

I really feel that I have got very much during this internship. There is much

to learn in medium companies like Metro. So I suggest students try to get

internship in Metro.
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Contents
Contents................................................................................4
The organization....................................................................7
History and Background:..............................................................................7

Nature of the Organization .......................................................................7

Group Systems & Technology Committee.................................................9

Management Committee...........................................................................9

Code of Corporate Governance...............................................................10

Products and Services:...............................................................................11

General Profile of the Company:.................................................................14

Vision of Metro:........................................................................................14

Mission of Metro:.....................................................................................15

Metro’s Targets:......................................................................................15

The Business Principles of Metro Hi-Tech (Pvt) Ltd. Gujrat......................16

Automotive Industry:...............................................................................20

Business Volume:....................................................................................24

Number of employees:............................................................................25

Organizational Structure:............................................................................27

Comments on Organizational Structure:.....................................................28


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Description of various Departments:..........................................................31

Finance & Accounting Departments:.......................................................31

Accounting system of the organization:..................................................37

Marketing and Sales Department:...........................................................39

Overall Appraisal and Problems:.................................................................42

Internal elements:...................................................................................43

External elements:..................................................................................49

Internship Activities:............................................................52
Detail Description of work (on Weekly basis):............................................52

My first week (from May 25, 2009 to May 31, 2009):..............................52

My second week (from Jun 1, 2009 to Jun 7, 2009):................................53

My Third week (from Jun 8, 2009 to Jun 15, 2009):.................................54

My Fourth week (from Jun 15, 2009 to Jun 21, 2009):.............................56

My Fifth week (from Jun 22, 2009 to Jun 28, 2009):................................58

My Sixth and last week (from Jun 29, 2009 to Jul 4, 2009):.....................59

Managers with whom I associated:.............................................................61

Application of the knowledge/ skills learned during MBIT studies:.............64

MS Excel: ................................................................................................64

MS Word:.................................................................................................66

Bank Reconciliation:................................................................................66
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MS GP Dynamics ERP:..............................................................................66

Accounting and Finance Concepts:..........................................................66

New things Learned:...................................................................................67

MS Excel’s learned things:.......................................................................67

The software of Metro Power Accounting:...............................................68

How reporting is performed:....................................................................68

Handling of checkbooks and maintaining the bank’s manual register:...68

Issuing checks and performing their dispatch process:...........................69

Sales tax payment concept:....................................................................69

Some little but important things:.............................................................69

Summary and Recommendations:.........................................71


Overall Summary:.......................................................................................71

Recommendation:.......................................................................................73

For the Organization:...............................................................................73

For the IBIT:.............................................................................................74

For the students of IBIT:..........................................................................75


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The organization

History and Background:

Metro Hi-Tech (pvt.) Ltd. was established by "YUNAS" Group of Industries in

1973, incorporated as a Private Limited Concern on 7th October 1985.

Begin with manufacturing of Electric Fans in Pakistan in the Brand name of

METRO, in different designs and sizes. It includes special varieties of Ceiling,

Pedestal, Exhaust, Double Action Bracket Fans, Table and Circumatic Fans

which display their professional expertise, skill and are equally renowned

locally and abroad. The Company has also started a new setup of

manufacturing of Household Appliances, which include METRO Motor Cycles,

Washing Machine, Gas and Electric-heater, Air Coolers and Geysers in

beautiful designs. Then it was divided into three units and a metro group of

companies was created under which there are now three companies, Metro

fans, Metro Motorbike Company, and the Metro Automotive parts. I entered

into the business of motorcycle in 2003.

Nature of the Organization

The Company is a Private Company within the meaning of Section 2(1) (28)

of the Ordinance, and accordingly:-

No invitation shall issue to the public to subscribe for any shares of the

Company.
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The number of the members of the Company (exclusive of persons in the

employment of the Company) shall be limited to fifty, provided that purpose

of this provision, where two or more persons hold one or more shares in the

Company jointly, they shall be treated as a single member; and the right to

transfer the shares of the Company is restricted in mannered to the extent

herein appearing. Metro Quality Products have been awarded Certification

ISO- 9002:1Certified NO. Q-SC-5755 DT 5/ 4/ 2000 by DET Norske Veritas

(DNV).

 The right to transfer the shares of the Company is restricted in

manner and to the extent herein appearing.

 The initial capital of the Company is Rs. 4,500,000/ 45,000

ordinary shares of Rs. 100 each.

 The shares shall be under the control of the Directors who may

allot or otherwise dispose of the same to such persons, on such

terms and conditions, and at such times, as the Directors think

fit.

 To buy, sell, manufacture let on hire, repair, service, overhaul

alter any machinery, component parts, accessories, equipment

and fittings of all electrical and other mechanical equipment.


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 To invite investment from local and foreign sources and to

promote the establishment of new industries in Pakistan or any

part of the world.

Once at least in every year the account of the Company shall be examined

and the correctness of the profit and loss account and balance sheet

ascertained by Auditors and the provisions of the Ordinance in regard to

audit and the appointment and qualification of auditors shall be observed.

Group Systems & Technology Committee

The Group System and Technology Committee are responsible to provide an

insight towards the various technological aspects of information systems.

The objective of the Committee is to introduce leading edge technology and

IT initiative to automate information delivery and accessibility of data for

enhancement of time and cost efficiency.

Management Committee

The Management Committee acts at the operating level in an advisory

capacity to the CEO, providing recommendations relating to the business

and other corporate affairs. The Committee has responsibility for reviewing

and forwarding long-term plans, capital and expense Budget development

and stewardship of business plans. The committee is also responsible for

maintaining healthy environment within and outside the company through its

environment friendly products.


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Code of Corporate Governance

The financial statements, prepared by the management of the company,

fairly present its state of affairs, the results of its operations, cash flows and

changes in equity. The company has maintained proper books of account.

Appropriate accounting policies have been consistently applied, except for

change as explained in note to the accounts, in preparation of financial

statements and accounting estimates are based on reasonable and prudent

judgment. International Accounting Standards, as applicable in Pakistan,

have been followed in preparation of financial statements. The system of

internal control is sound in design and has been effectively implemented and

monitored. The process of monitoring internal controls will continue as an

ongoing process with the objective to further strengthen the controls and

bring improvements in the system. There is no doubt about the company’s

ability to continue as a going concern.

There has been no material departure from the best practices of corporate

governance, as detailed in the listing regulations. A summary of key

operating and financial data of the company is annexed.

Information about taxes and levies is given in notes to the accounts.

The Company operates a contributory provident fund scheme for all

employees and defined benefit gratuity fund scheme for its

management/non-management employees on behalf of the Board of

Directors.
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Products and Services:

The complete list with picture of the products of the Metro is given below:

1. Metro MR 70-Red, The most demanding product of Metro. Almost 80%

of sale is consisted of this bike.

2. Metro MR 70-Black

3. Metro MR 70-Blue

4. Metro MR 70-Blue

5. Metro MR 125-Red
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6. Metro MR 125-Black

7. Metro-125’s Back Light and Front Light

8. Petrol Tank

9. Mobil Oil for Motorcycle


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10. Some other are given in this poster:


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General Profile of the Company:

Vision of Metro:

MEETING YOUR DREAMS… Quality is everything what we execute, Right first

time, on time, every time. WE INNOVATE NOT IMMITATE. We being quality

conscious are approved by following quality institutions:-

 METRO Quality Products have been awarded Certification ISO-

9002:1994. Certificate No. Q-SC-5755 DT 5/4/2000 by DET

Norske Veritas (DNV).

 Saudi Arabian Standard Organization (SASO) under International

Conformity Programme by Intertek Testing Services (Singapore)

Pte Ltd.

 Pakistan Standard and Quality Control Authority, Standard

Development Centre (PSI-1).

 Also Registered with E in C’s Branch, General Headquarters,

Rawalpindi (M.E.S.)

 Enlisted as Manufacturers/Exporters in Engineering Development

Board (E.D.B.) Ministry of Industry, Government of Pakistan.

"We have met all the above quality certifications criteria due to our highly

qualified, experienced and devoted operational staff under the supervision of


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professionals, supervisors & inspectors under secure working environments.

We are producing environmental friendly and energy saving products.

Mission of Metro:

The main goal of METRO, is to improve the level of customer service in Motor

Bikes, Electrical Fans and in Household Appliances Manufacturing.

Hence the operation of the delivery services and distribution Is.

professionally handled by the experienced staff. We believe in providing

fastest and efficient services to our clients backed by the State of Art

Manufacturing equipment and modern quality control systems. All these

things are our back-up power to achieve our targets and goals.

Our mission is to set our operations around your needs, building a one to one

relationship with each individual customer and tailoring our service

according to your requirements.

Metro’s Targets:

 To be the No.1 automobile company in Pakistan.

 To assumes leadership role in the technological advancement of

the industry and to achieve the highest level of quantitative

indigenization.

 To offer high value, economical and qualitative solutions to

address the commuting needs of a diverse range of customers.


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 To seek long –term and good relations with our suppliers and

dealers with fair, honest and mutually profitable dealings.

 To be a totally customer oriented company and to achieve Total

Customer Satisfaction.

 To create a work environment, which motivates, recognizes and

rewards achievements at all levels of the organization.

 To produce environment friendly vehicles.

 To be a contributing corporate citizen for the betterment of

society, and to exhibit a socially responsible behavior.

The Business Principles of Metro Hi-Tech (Pvt) Ltd. Gujrat

Corporate philosophy:

 Maintaining a global viewpoint, Metro is dedicated to supplying

products of the highest quality yet at a reasonable price for

worldwide customer satisfaction.

 Dynamic manufacturing and marketing of prestigious products to

the entire satisfaction of customers.

 Create ideal working environment for continuous development of

product and personnel.


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 Provide adequate return to share holders and fulfill corporate

civic obligations.

Management policy:

 Proceed always with ambition and youthfulness.

 Respect sound theory, develop fresh ideas, and make the most

effective use of time.

 Enjoy your work and encourage open communications.

 Strive constantly for a harmonious flow of work.

 Be ever mindful of the value of research and endeavor.

 Respect for all – man has priority over others.

 Man is the key in controlling i.e. machines, methods and

materials.

 Follow 3S spirit i.e. small, smart and speed.

 Believe in 3A “Metro on Approach” i.e. be on Actual Spot, look at

the Actual Spot and confront the Actual Situation.

 Be a good corporate citizen; assume a responsible role in

community.
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Priority standards of conduct:

 Safety: There can be no production without safety.

 Quality: To achieve the No.1 customer satisfaction, Metro is

dedicated to supply the prestigious products of its highest

quality, through our smart team work.

 Productivity: With safety and quality each of it will strive to Excel

the performance in all fields of its activities i.e. Production,

Marketing & Planning, After Sales Service, Finance, Logistics &

Imports and Human Resource & Administration etc.

Human resource and succession plan:

Human Resource Policy is to hire young, fresh, energetic and active

associates to meet the existing and future workforce requirements and

providing its associates maximum opportunities for internal mobility

through personal training and development to enable them to take

higher positions. Human Resource Division has to have succession plan

for each key job/area to make sure the continuity of operations in the

relevant division and to fill the temporary/permanent vacancy.

Quality policy:

To achieve the No.1 customer satisfaction, Metro is dedicated to

supplying the prestigious products of its highest quality through its


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smart team work defined by the regulatory parameters & continually

improving its strategies and goals for better performance.

Environment policy:

 Metro Hi- Tech (Pvt) Ltd Gujrat (Pakistan), being responsible

member of the society considers the preservation of the global

environment as a crucial concern. Metro’s environmental

philosophy is firmly based on the following guidelines:

 Recognize the impacts of the significant aspects on the

environment resulting from activities, products and services;

 Formulate objectives and targets to control the effects of

activities on local environment as for as technically feasible;

 Operate in compliance with relevant environmental laws,

regulations and other requirements that apply to its activities;

 Create environment friendly attitude among associates;

 Commitment to continual improvement of the environmental

performance and review of the environmental management

system to ensure its suitability, adequacy and effectiveness.

Safety, health and environment;

 Metro Hi- Tech (Pvt) Ltd Gujrat (Pakistan) conducts its business

responsibly and in a way to make sure Health, Safety and


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protection from Environmental aspects of its associates and the

society. Metro implements and maintains the programs that

provide reasonable assurance that the business will do the

following:

 To comply with all applicable government and internal health,

safety and environmental requirements.

 Design facilities and conduct operations in a way that avoids risk

to human health, safety and the environment.

 To examine and communicate the known hazards of operations

with relevant health, safety and environmental protection

information to potentially affected persons.

Operating Principles:

 Always keep the deadline.

 Never make excuses.

 Teamwork.

Automotive Industry:

Pakistan is an emerging market for automobiles and automotive parts offers

immense business and investment opportunities. The total contribution of

Auto industry to GDP in 2007 is 2.8% which is likely to increase up to 5.6% in

the next 5 years. Total gross sales of automobiles in Pakistan were Rs.214
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billion in 2006-07 or $2.67 billion. The industry paid Rs.63 billion cumulative

taxes in 2007-08 that the government has levied on automobiles. There are

500 auto-parts manufacturers in the country that supply parts to original

equipment manufacturers (PAMA members). Auto sector presently,

contributes 16% to the manufacturing sector which also is expected to

increase 25% in the next 7 years, as compared to 6.7 percent during 2001-

02.Vehicles’ manufacturers directly employ over 192,000 people with a total

investment of over $ 1.5 billion. Currently, there are around 82 vehicles’

assemblers in the industry producing passengers cars, light commercial

vehicles, trucks, buses, tractors and 2/3 wheelers. The auto policy is geared

up to make an investment of $ 4.09 billion in the next five years thus,

making a target of half a million cars per annum achievable.

Government of Pakistan had undertaken two major initiatives in the form of

National Trade Corridor Improvement Program (NTCIP) and Auto Industry

Development Program (AIDP) for the development of the automotive

industry in Pakistan.
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Engineering Development Board (EDB) is actively implementing the AIDP to

increase the GDP contribution of the automotive sector to 5.6%, boost car

production capacity to half a million units as well as attract an investment of

US$ 3 billion and reach an auto export target of US$ 650 million.

Automotive engineering is a driving force of large scale manufacturing,

contributing US$ 3.6 billion to the national economy and engaging over

192,000 people in direct employment.

The Auto parts manufacturing is $ 0.96 billion per annum. The demand for

auto parts is highest in the motor cycle industry which is 60%, then is for

cars which constitutes to 22% and the rest 18% is consumed by trucks,

buses & tractors. This demand is met by Imports which caters 22% while the

remaining 78% is supplied by the local manufacturers.

Due to the increase in demand for sophisticated machinery, the government

has allowed duty free import of raw material, sub components, components

assemblies for manufacturers & assemblers. Total import bill of machinery

stands at $2.195 billion in the current fiscal year of 2007-08 which is 12.77%

higher than that of the preceding year.

The impressive growth in the machine tools and automation sector is directly

proportional to the growth of the automotive industry which has become the

fastest growing industry of Pakistan and contributes $3.6 billion annually to

the country’s GDP.


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The aftermarket for spares has also witnessed immense expansion over the

same period, with imported parts playing an important role in meeting local

demand. The spare parts market is given further impetus by a total vehicle

population of approximately 5.4 million

Pakistan has the second highest number of CNG-powered vehicles in the

world with more than 1.55 million cars and passenger buses, constituting

24% of total vehicles in Pakistan with improved fuel efficiency and

conforming to the latest environment regulations.

VISION 2012: The Future of Pakistan Auto Industry

Product 2007-8 VISION 2012


Cars (nos.) 164,710 500,000
2 wheelers 1.06 million 1.7 million
Investment (Billion) 98 225
Contribution to GDP (%) 2.8 5.6
Contribution to manufacturing 16 25

sector (%)
Direct Employment 192,000 500,000
Gross sales turn over (Billion) 214 600

Decline in Sales and Revenue

Unfortunately, the recent downward trend in auto sales (cars + LCVs)

continued as auto sales stood at 27,034 units for July-September 2008,

showing a decline of 44 percent year-on-year, the data released by Pakistan

Automobiles Manufacturers Association (PAMA) shows.


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Automobile grew from 2001-2007, the industry and the government of

Pakistan fixed a target of over half million units’ production by the year

2011-12 that now seems out of reach. The industry slightly fell short to

achieve the targeted productions in 2006-07 when 1,95,688 cars were

manufactured against a target of 2,26,620 units. However, there was some

growth in production that year. In 2007-08 the production declined to

1,87,634 units against a projected target of 2,66,543 units. In the current

fiscal year they said the production is expected to decline to 1,50,107 units

that are half the projected target of 3,13,486 units.

Despite an additional levy of 5 per cent excise duty, the revenues from

automobile sector would decline by over 25 per cent this year due to

declining demand. The industry paid Rs.63 billion cumulative taxes that the

government has levied on automobiles. This year, despite additional duty the

sector would hardly contribute Rs50 billion in the national exchequer.

Business Volume:

The sales of the company, for the period 2007-2008, were more than 17000

units of motorbikes. And in 2008-2009 the sale has reached to more than

22000 units of motorcycles. In term of money if exclude the sales tax then

this amount Rs. 581 million in 2007-2008 and in 2008-2009 it may reach Rs.

752 million.
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Number of employees:

The Total number of employees working in Metro Hi- Tech (Pvt) Ltd. Gujrat

on 30th June 2005 is 700 including managers, executives & subordinates.


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Organizational Structure:
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Comments on Organizational Structure:


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The structure of the Metro is Functional. Each department works

independently but still there are dependencies on each other, e.g. Finance

department has keen link with the sale and purchase departments. Also the

work of Finance and Accounts department is interlinked.

The payroll system is the hands of HR but the entries of salaries are done by

the Accounts department.

Production department is dependent on the Purchase department and

imports department.

In the below there are the names of department heads:

 CEO Mr. Imtiaz Ahmed

 COO(Chief Operating Officer) Mr. Sajid Ali Bodla

 GM Finance Mr. Aamir Khalid

 Head of Sales and Marketing Mr. Mahmood Ali Mir

 HR and Admin. Head Mr. Anwer Murad

 Manager Production Mr. Imtiaz Hussain

 Accounts Manager Mr. Abdul Rehman Mir

 Head of Services and Development Mr. Imran Saeed

 Procurement Manager Mr. Kashif Javed


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 Manager Imports Mr. Zamir Abbas


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Description of various Departments:

Finance & Accounting Departments:

The relationship between finance & accounting, conceptually speaking, has

two dimensions; (i) they are closely related to the extent that accounting is

an important input in financial decision-making; and (ii) they are key

difference in viewpoints between them.

Accounting function is a necessary input into the finance function. That is, a

sub functions of finance. Accounting generates information/data relating to

operations/activities of the firm. The end-product of accounting constitutes

financial statements such as the balance sheet, the income statement (profit

& loss account) and the statement of changes in financial position (sources

and uses of funds statement). The information contained in these statements

and reports assists financial managers in assessing the past performance

and future directions of the firm and in meeting certain legal obligations,

such as payment of taxes and so on. Thus, accounting and finance are

functionally closely related.

But there are key difference between finance and accounting. The first

difference relates to the treatment of funds while the second relates to

decision-making.
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Treatment of Funds:

The viewpoint of accounting relating to the funds of the firm is different from

that of finance. The measurement of funds (income & expenses) in

accounting is based on the accrual principle/ system. For instance, revenue

is recognized at the point of sale and not when collected. Similarly, expenses

are recognized when they are incurred rather than when actually paid. The

accrual-based accounting data do not reflect fully the financial

circumstances of the firm. A firm may be quite profitable in the accounting

sense in that it has earned profit (sales less expenses) but it may not be able

to meet current obligations owing to shortage of liquidity due to uncollectible

receivables for instance. Such a firm will not survive regardless of its levels

of profits.

The viewpoint of finance relating to the treatment of funds is based on cash

flows. The revenues are recognized only when actually received in cash (i.e.

cash inflow) and expenses are recognized on actual payment (i.e. cash

outflow). This is so because the financial manager is concerned with

maintaining solvency of the firm by providing the cash flows necessary to

satisfy its obligations and acquiring and financing the assets needed to

achieve the goals of the firm. Thus, cash flow-based returns help financial

managers avoid insolvency and achieve the desired financial goals.


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Decision making:

Finance and accounting also differ in respect of their purposes. The purpose

of accounting is collection and presentation of financial data. It provides

consistently developed and easily interpreted data on the past, present and

future operations of the fi8rm. The financial manager uses such data for

financial decision making. It does not mean that accountants never make

decisions or financial managers never collect data. But the primary focus of

the functions of accountants is on collection and presentation of data while

the financial manager's major responsibility relates to financial planning,

controlling and decision making. Thus, in a sense, finance begins where

accounting ends.

Finance and Economics:

The relevance of economics to financial management can be described in

the light of the two broad areas of economics: macroeconomics and

microeconomics.

Macroeconomics is concerned with the overall institutional environment in

which the firm operates. It looks at the economy as a whole.

Macroeconomics is concerned with the institutional structure of the banking

system, money and capital markets, financial intermediaries, monetary,

credit and fiscal policies and economic policies dealing with, and controlling

level of, activity within an economy. Since Business firms operate in the

macroeconomic environment, it is important for financial managers to


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understand the broad economic environment, specifically, they should (1)

recognize and understand how monetary policy affects the cost and the

availability of funds; (2) be versed in fiscal policy and its effects on the

economy; (3) be aware of the various financial institutions/ financing outlets;

and (4) understand the consequences of various levels of economic activity

and changes in economic policy for their decision environment and so on.

Microeconomics deals with the economic decisions of individuals and

organizations. It concerns itself with the determination of optimal operating

strategies. In other word, the theories of microeconomics provide for

effective operations of business firms. They are concerned with defining

actions that will permit the firms to achieve success. The concepts and

theories of microeconomics relevant to financial management are, for

instance, those involving (1) supply and demand relationships and profit

maximization strategies, (2) issues related to the mix of productive factors,

‘optimal’ sales level and product pricing strategies, (3) measurement of

utility preference, risk and the determination of value, and (4) the rationale

of depreciating assets. In addition, the primary principle that applies in

financial management is marginal analysis; it suggests that financial

decisions should be made on the basis of comparison of marginal revenue

and marginal cost. Such decisions will lead to an increase in profits of the

firm. It is therefore important that financial managers must be familiar with

basic microeconomics.
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Thus, knowledge of economics is necessary for a financial manager to

understand both the financial environment and the decision theories which

underlie contemporary financial management. He should familiar with these

areas of economics. Macroeconomics provides the financial manager with an

insight into policies by which economic activity is controlled. Operating

within that institutional framework, the financial manager draws on

microeconomic theories of the operations of firms and profit maximization.

Finance and Other Related Disciplines

Apart from economics and accounting, finance also draws-for its key day-to-

day decisions-on supportive disciplines such as marketing, production and

quantitative methods. For instance, financial managers should consider the

impact of new product development and promotion plans made in the

marketing area since their plans will require capital outlays and have an

impact on the projected cash flows. Similarly, changes in the production

process may necessitate capital expenditures which the financial managers

must evaluate and finance. And, finally, the tools of analysis developed in

the quantitative methods area are helpful in analyzing complex financial

management problems.

The marketing, production and quantitative methods are, thus only indirectly

related to day-to-day decision making by financial managers and are

supportive in nature while economics and accounting are the primary

disciplines on which the financial manager draws substantially.


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The Relationship between financial management and supportive disciplines

is depicted in following fig.

Financial Decision Areas:

Investment Analysis Primary


Working Capital Disciplines
Management Support Macro
Sources & Cost of Funds Economics
Determination of Capital Micro Economics
Other Related
Analysis of Risk &
Disciplines
Returns
Marketing
Resulting Production
Quantitative Methods

Owner’s wealth

maximization
Functions of the Finance Department:

These are the following main function of the finance department.

 Prepare the financial statement on monthly basis, quarterly basis and

annually basis.

 Analyzing the financial statement.

 Prepare the production Report.

 Budgeting

 Maintain in minimum level of cash to meet the daily transaction.

 Prepare the bank reconciliation statement.


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 Calculate the working capital requirements.

 Prepare the facility report.

 Prepare the projected income statement, balance sheet and cash flow

statement.

 Maintain the debit and debit credit balance of the customers

 Deal with the sales tax and income tax.

 Keep the record for all the types of payments.

Accounting system of the organization:

The accounting procedures describe to this point may be summarized in

eight steps, as follows:

 Journalize transactions: enter all transactions in the general

journal, thus creating a chronological record of events


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 Post to ledger accounts: post debits and credits from the

general journal to the proper ledger accounts, thus creating a

record classified by accounts.

 Preparing a trial balance: prove the equality of debits and

credits in the ledger.

 Make end-of-period adjustments: draft adjusting entries in

the general journal, and post to ledger accounts. Thus far we

have illustrated only one type of adjustment: the recording of

depreciation at the end of the period.

 Prepare an adjustment trial balance: prove again the

equality of debits and credits in the ledger.

 Prepare financial statements and appropriate disclosures:

an income statement shows the results of operations for the

period. A statement of owner's equity shows the changes in

owner's equity during the period and the ending balance. A

balance sheet shows the financial position of the business at the

end of the period. Financial statements should be accompanied

by notes disclosing any facts necessary for the proper

interpretation of those statements.

 Journalize and post closing entries: the closing entries clear

the revenue, expense, and drawing accounts, making them


39

ready for recording the events of the next accounting period. The

closing entries also transfer the net income or loss of the

completed period to the owner's capital account.

 Prepare an after-closing trial balance: this step ensures that

the ledger remains in balance after posting of the closing entries.

The sequence of procedures performed in computer-based systems is

essentially the same as in manual systems. Of course, the computer is

programmed to perform a number of these steps automatically.

Marketing and Sales Department:

Metro's marketing strength over the years has been the ability of its team

and the different functions to act in unison. The year saw improvement in all

areas of marketing. The Dealers Development initiative, that currently forms

the backbone of the marketing effort, has almost matured with 300

dealerships graduating. This means that the company now has more

dealerships that provide full range of services like Sales, Service, Spare

Parts, Special Sales (Credit Sales) and Second Hand Exchange than the

traditional dealerships that offer only selected services. As expected, the

dealership concept is successfully generating the extra brand equity that

differentiates Metro's products from the copy makers to create a distinct

value premium. The presence of the dealerships has resulted in improved

sales in relatively weak or unfocused areas. To supplement the activities, the

company also re-initiated an invigorating advertising campaign on the


40

electronic media. The advertisements were instrumental in reinforcing

Metro's quality and brand in the consumer mind through the very popular

“DHOOM MACHAY SARAKOON PAR” & “METRO KA VADAH PETROL

KAM SAFAR ZIYADAH”- slogan. In times of excess demand, the recall

value of the ads has been so powerful that all over the country customers

are willing to wait for the company's product rather than purchase an inferior

one. It is anticipated that this media campaign will provide the base to

launch Metro's next push for market growth. As Metro prepares to shift

another gear to fulfill its dream of "class to mass" , media advertisements on

TV, Newspapers and radio will play a distinct role in projecting the company's

message. Metro is reinforcing efforts to serve its loyal customers even at

the cost of lower margins. This the company views as an investment rather

than a cost! The Dealer contest remained a pivotal activity for the Service

Department and proved a resounding success. Company is achieving more

than 90 percent target of workshop development was achieved through

enthusiastic participation by the dealers. Critical areas like workshop

development, effectiveness of warranty system, better tools and equipment

and service management were improved markedly as a result of this

exercise. The competition culminated in Lahore City (Head of the Marketing

department -Metro Motorbike Company 23, H-3 Block, Johar Town

Lahore) resulting in improved motivation for the Dealerships. The 4-stroke

mechanic training activity has been the main stay of the Service

Department's efforts over the years. Several mechanics are trained every
41

year in three day extensive training programs. Since a great deal of the

original objective has been achieved, from now on more selected training will

be arranged that will be dovetailed with the overall marketing strategies of

the company. Metro has always been at the forefront in promoting

Customer Care activities. Metro has consistently promoted environment

consciousness and safety-riding activities through its Customer Education

Programs. A new initiative is now being envisaged as the company roles out

a nationwide Safety Riding Program. In fact, the program has already come

out of the planning stage during the year and made a soft start through

training of the Metro Chief Instructors by an overseas trainer. One hundred

& fifteen service dealers and Metro staff have been trained. They, in turn,

will train the company's customers as part of the new Customer Care

program. Metro is also in the process of establishing a Safety Riding School

to centralize the effort on a sustained basis.


42

Overall Appraisal and Problems:

As we all know that the short fall in production of any company is a very

serious matter, especially for the companies whose ultimate aim is to earn

profit. A company continuously tries to find ways to increase its sale day by

day. So the sales will enhance only when then there is an adequate amount

of product is producing in the factory or any other production area. Any fault

on the production side can influence the sale badly. Unfortunately the same

problem is also present in our scenario and we have to find the possible

solutions.

As we all know being a student of MBIT and specially a student of Prof.

Mansoor Mahmood Ashiq, very well about the concept of SWOT analysis. In

SWOT analysis we all know that strength and weaknesses are the internal

controllable factors. In case of shortfall in production we should firstly

analyze the internal controllable elements because we can control them,

then the outer uncontrollable element.


43

S=

INTERNAL ELEMENTS

W=

O=

EXTERNAL ELEMENTS

T=

Internal elements:

As we all know that strength and weaknesses these two are included in the

internal controllable elements. In this we study the concept of FIVE M’s (5

M’s). These M’s are as follows:

 M = Men

 M = Money

 M = Machinery

 M = Material
44

 M = Method

Now we will assume that the main two factors which are causing this

problem of low production are ‘MEN’ and ‘METHOD’ and the other factors

are working according to the planning and they are not playing any role in

the shortfall of production. But we will just slightly touch all of them.

Weaknesses:

MEN

 Brain drain: It means that the employees are leaving the jobs, so that

is why there is a lack of experienced employees in the organization,

which leads to a shortfall in production.

 Awkward working hours: The working hours for the labor are not

right and accurate. The working hours are so much awkward that they

labor force feels so much fatigueness and exertion, after continuously

working. There are no refreshing means available for the labor force in

order to remove their working exhaustness. There are continuously

working hours and the labor has not been provided any suitable span

of time of refreshment.

 No up-to-date training of employees: There are no proper

arrangements for the up-to-date trainings of employees, both at

managerial and non-managerial level. The employees are working


45

along with their concise and conservative knowledge. There are no

refresher courses for their training.

 Frequent labor conflicts: There are frequent conflicts among the

laborers which causes stoppage of work and which ultimately lead to

shortfall in production.

► Misuse of authority: The authorities assigned to the workers

are being misused by them. Perhaps the employees are using

the company’s resources for their own interest and misusing the

authority assigned to them.

► Lack of reward and appreciation/skill based pay: There is a

lack of reward and proper incentives for the workers. The

employees working more efficiently and effectively are receiving

the same rewards as the others. These efficient employees are

also not obliged with some appreciation.

► No co-ordination among employees: There is a lack of co-

ordination among employees. Employees are not in well

exchanging their ideas, methods of production and their skill

among each other so that their ideas are reserved to only a

single person and the whole system is not enjoying it.

► Incorrect assignment of work: There is an incorrect

assignment of work in the organization. The jobs assigned to the


46

workers do not match with their skills, mental as well as physical

capabilities, which ultimately lead to short fall in production.

► Disturbance caused by the labor unions: Labor unions are

continuously disturbing the whole environment of organization,

by raising strikes and stopping the production. So this ultimately

leads to shortfall in production.

► Satisfying behavior: The employees have adopted the

satisfying behavior due to which they are not working as

planning, and are just deceiving the management.

There are also so many points but due to limitation of the scenario we are

just giving their names which are as follows:

 Partial behavior of manager

 Unskilled labor

 No direct communication

 Lack of labor dignity

 Lack of the efficiency/effectiveness

METHODS:

Methods relates to the techniques and skills used in the business. Methods

play a vital role in the success or failure of any business/organization. These


47

are the methods who distinguish one organization from other in production,

marketing, sale etc. according to our selection there is some fault in the

methods of company which is causing shortfall in production. The main

postulates are as follows:

 Conservative and traditional methods of production: the

methods and techniques which are being used by the company

are so much obsolete and traditional they are imposing a bad

effect on the production. The company is not acquiring the

changing techniques in business and the day to day

technological advancement in the methods of production.

 Lack of bench marking: the term bench marking refers to the

field trips in order to learn from some other organization about

how to produce something cheaper and better.

 Lack of virtual management training: there is no availability

of virtual management training, which means that to train by

creating an artificial environment. The managers are not

provided such type of trainings and refresher courses in order to

make them capable of coping with day to day problems

regarding production.
48

 Ignorance about scientific methods: there is no familiarity

with scientific methods and all the works are going on

haphazardly and without any well organized manner.

Strengths:

 Brand Name: Metro has a good reputation in Pakistan due to its

beautiful design of Motorcycle and after sale service.

 Potential Dealers: Metro has a good devoted pool of dealers.

 ISO-9001 Certification: Metro has got ISO 9001 certification for

its products.

 Good Top Management: The top management is highly

potential, hard working and well experienced.

 Bonus system for Workers and Dealers: Metro has

incentives for dealers and bonuses for workers that lead to

motivation of both parties.

 Customers are Satisfied.


49

External elements:

Opportunities:

 Huge Demand of Auto mobiles: Pakistan has a big middle

class so there is a huge demand of motorcycles.

 Still many areas to cover: Metro has no setup in Baluchistan,

many areas of NWFP and some areas of Punjab and Sindh. Metro

can go these areas and can increase its sales.

Threats:

We assume that all the other factors do not affect the production in company

except the factors which we mentioned below. There explanations are as

follows.

 Competitors: Metro is facing a tough competition from the

competitors. There are two types of competitors for the Metro

one of Japanese technology holder and the other having Chinese.

Metro is itself Chinese so it considers other Chinese technology

holder as threatening competitors. So it is coping with them by

good marketing and after sale services.

 Electricity Problems: This is a big threat for all the businesses

nowadays in Pakistan as the Metro is also facing this problem To

cope with it they are currently using generators but interval

between switching the mode of energy costs the company a lot.


50

 Suppliers: Metro is more dependent on suppliers so there is a

big problem if suppliers try to get their requirements fulfilled on

their conditions.

 Inflation: The inflation rate now in Pakistan is at its top people

have not enough money to spend on basic needs rather to

purchase a motor bike. The inflation has already reduces the

demand for motorcycle industry in Pakistan.

 Interest rate: Since more of the businesses in Pakistan get

debts from the banks but the interest rates are very high in

current situation, so in case of default company can face trouble.

 Political factors: political factors can influence as under:

► Political instability: due to political instability the

organization has no surety of its existence that whether

the organization will survive in the market or not. That’s

why they reduce their production.

► Political influence: sometimes due to some political

influence some incompetent persons are hired who do not

know about the work and cannot give the results as

planned.
51

► Instigating labor unions: some political parties instigate

the labor unions due to their personal clash with the

company.

 Death of a partner: partnership is the main deed in the

formation of company. Partners are just like the arms of each

other, who balance each other. According to our selected

scenario there may be a death of one partner which ultimately

causes a delay in making some important business decisions.

There may be certain interruption in work which ultimately

causes shortfall in production.

 Electricity problem: there is certain electricity fluctuations

which caused the stoppage of work at certain instants.

 Death of employees: certain experienced employees have

died in the assumed scenario. So for hiring new employee and

give training to them took a lot of time, which ultimately leads to

shortfall in production.
52

Internship Activities:

Detail Description of work (on Weekly basis):

My first week (from May 25, 2009 to May 31, 2009):

My first week of internship, that started from May 25, 2009, I was assigned to

perform data entry. This data entry was to write figures from their old

software to their new software named Power Accounting. It was required

because they have to create a report of 2007-2008 sales report, but in the

middle of that period thaw had changed their software. Now the half of the

data for the period of 2007-2009 was on the old software and other half was

on the new software. They wanted to get the data of that fiscal year on the

same software so they assigned of to do that. One of their Finance officer Mr.

Usman Riaz told of how to perform this function, after it I did it on my own

some time he got the problem e.g. Query problem, Sign in problem as

electricity forced us to sign in after every hour. This thing helped of a lot to

understand their sales data that how they record, present it to top

management as after this data entry I created various types of reports. The

problem that faced while entering the data on the software was when I had

to write the data fetching query on their old software again and again, this

thing consumed a lot of time.


53

One thing in this data was that I had to enter the summary of the sale by

dealer and month wise in their software not the detail sold data, he I had to

do that in detail it would not possible to do that in the whole duration of the

internship.

My second week (from Jun 1, 2009 to Jun 7, 2009):

My second week that started from 1st of June 2009, its work is divide into

two parts. For the first three day I performed the same tasks that I did in the

first week. In the first week it was not possible to finish the data entry as

after each hour the electricity problem occurred. So in the middle of the

second week I completed the data entry work. So in the remaining three

days I learned how they do cash receipt entry. In their software, there is a

cash receipt entry box. They foot perform this entry unless the cash is

credited in the company’s account in the respective bank. In this entry

you have to write entry date, amount receipt type i.e. Cash, check, online

transfer or Demand draft, then the receipt amount. Below this box, we write

the bank name in debit side and dealer's name in the credit side. This entry

is then saved and then posted by the assistant finance manager.

More over they had a register in which the finance department stores the

vouchers of daily cash receipts that is received from the dealers. On these

vouchers they write against each receipt that towards which bank account of

the company this receipt has been deposited. There one finance officer had

write it before for the year 2008-2009 but with a ball point pen. I was asked
54

to write it in a new register/folder with a lead pencil. In the remaining three

days I did this work. This thing helped of that how they create the daily

receipt's record. This register is a complete storage of the company's cash

receipt from the dealers of motorcycles. On their vouchers, I had to write the

amount clearing date, bank name with account number's last three or four

digits. In the mean while, I performed punching of papers, photo copying and

creating a new folder for storing the vouchers.

My Third week (from Jun 8, 2009 to Jun 15, 2009):

My third week was very interesting. I had performed three types of tasks in

this week.

1. First task that I did in this week was to write discount rates on the

Excel against a particular dealer. This Excel sheet contained a column

of dealer name, city, quantity sold, rate per unit, total amount, then a

column of discount rate. The ending column gave the total amount of

invoice excluding the discount rate. Then from using this data they had

to enter the transactions of invoices in their software. This thing

showed me that how to handle the discount and how to use this

discount to save the tax. Further advanced tasks related to this area I

performed later on, and I will give its detail in that paragraph.

2. I sat a few days with the person who performs the tasks of bank

reconciliation, maintaining of bank register and handling the check

leaves. K learned all these things from him.


55

 First of all he have me the finished check books to paste them on

the white pages in order to keep them in a folder. These leaves

have to be parted in a sequence. The cancelled checks must

have the printed check number of other half the check, on the

front of the leaf. After parting these pages they write the bank

name, account number on the empty place above the leaves.

Then after punching them i put them in a folder. Almost 3 leaves

of check book parted in note time. The second thing he taught of

was how to maintain the register. To maintain it on daily basis

before leaving the office this register have to be updated by the

finance person. When a new check book is brought first of all its

check number is entered in the register. Then on daily basis the

payment against each check are written against each check

number with amount, payee's name. He check is cancelled then

with a red pen it is written in front of the check number that it is

cancelled. Also from the daily bank statement a check, which is

cleared from the bank for against the payment, is given, the

clearing date is written against the clearing check.

 Then the third he taught me how to how to perform the bank

reconciliation. For this purpose he wrote the monthly bank

statements on the Excel sheet. Then the bank register from their

software was converted into the Excel. First of all he took the
56

bank statements each payment and then tallies it with the

company's register. Then he performed the same function with

the company’s own register of that bank account. Now the

amounts that did not tally. He performed some function e.g.

whether check is cancelled, or not cleared, or returned by the

bank etc.

3. The third task that I performed in my third week of internship was to

create a report of sale from July 2008 to April 2009. This report would

contain the quantity, invoice amount, sales tax amount on that invoice,

Special excise duty and the sum of all. The report format was dealers

name on left side in one column then their city. On the first column

there were the months in order. Now I had to write the dealer wise

monthly invoice’s amount that calculates the taxes and invoice’s net.

For my ease I used the technique of pivot table and I created this

report in just one hour and surprised everyone in the office, as on one

of them knew the pivot table before. They used the simple copy paste

procedure for this purpose. Later on I prepare another similar type of

report that contains the discount effect.

4. During this week I also learned the technique of subtotals.

My Fourth week (from Jun 15, 2009 to Jun 21, 2009):

In the fourth week of my internship I performed multi tasks:


57

1. As I mentioned above I learned things about bank reconciliation, leaf

handling and register maintaining so I did these things in things on my

own. First of all I entered the bank statement of two banks in the excel

sheet. This function is performed in order to locate an amount and

check number easily. Then I converted the data of those bank accounts

from the software into Excel format. Then I have to tally both bank

statement and the bank register of company. First of all I searched the

amounts of bank statements in the company’s ledger by using three

parameters the amount, check number and date. If an amount was not

available in the company’s ledger I marked it. Then after completing

this function I carried on the same procedure with the company’s

ledger and determined which amount is not available in the bank

statement, and I marked them. After doing this I had a raw report that

which amount is missing in either side. So I made a neat report and

then by using this data I made the bank reconciliation statement.

2. Then this whole week I maintained the register of the bank accounts, I

wrote the amount against a check, its date, payee’s name and etc.

Also from the daily bank statement I found which check paid has been

cleared, I wrote its clearing date against its check number in the

register.

3. The in this week I pasted almost six finished check book on the white

papers.
58

4. Then I wrote several checks in this week. All these checks were to the

venders and were cross checks. I wrote the vender name, date,

amount and then stamped it with company’s stamp and also stamped

it with “payee’s account only”. The second task was to photo copy it so

I did this thing.

5. After the writing of the check I was I asked to write the addresses of

the corresponding venders on the envelop and then insert these

checks into the these envelops. All this work of check writing and

dispatching done by me, was also monitored by my super visor Mr.

Abdul Rehman.

My Fifth week (from Jun 22, 2009 to Jun 28, 2009):

During this week I was given the work for some entries sales and cash

receipt related. And I also made a report that contains the sales. I will

discuss these tasks in detail below:

 First of all I created the summary report of whole year from July 2008

to April 2009. I had created a report of similar type in previous weeks

but the difference between this report and that report is that it

contained the discount t as well. I once again used the technique of

pivot table to create this report. But there was a problem I had to

insert the discounts against each invoice. And there were more than

5000 invoice records in the excel sheet. And some dealers are

provided the discount and some are not. Moreover the discount rates
59

were different for each of dealers. To handle this situation I used the

vlookup formula. Under this formula, I insert the dealer’s name their

discount rate and then by using the formula I interlinked these two

sheets, in less than a minute there discount rates against each of the

dealer. Then I used the same procedure as I have written above.

 The second major work I did this week was merging the discount rate

in the sales invoices. First of all I was asked to edit the sales tax

invoices so I did. Then the invoices including the discount were created

then by using this discount rate I entered these values in the software

in order to adjust the dealer’s ledger.

 As in the previous week I did write the checks and dispatched them the

same thing I did in this week as well.

My Sixth and last week (from Jun 29, 2009 to Jul 4, 2009):

This week I spend with the Accounts department. The first two days I sat with

the accountant Mr. Atif Butt. I examined how he performs the journal

voucher entries. His basic work was to perform adjusting entries of utility

bills, interest expenses, salaries etc. His work was very simple if you the

chart of account of the Metro and also the concept of journal entries.

Then in the second two days I spend with person who deals with the taxes.

He told me his work about taxes that how he calculates the input tax and out

tax and how he perform the entries in the FBR’s website against the
60

company’s account. His work was also to communicate with venders for the

sales tax purposes, so he often wrote letter to them, during work with him I

performed the technique of mail merge in MS Word.

Then in later two days I got the knowhow of the work of the person who

manage the purchases. Moreover I make conversation with assistant

Accounts manager who told me about his job that he has to perform the

posting of all journal voucher entries.


61

Managers with whom I associated:

My supervisor was Mr. Abdul Rehman who was Assistant Finance Manager in

Metro. More over Finance Manager is Mr. Amir Khalid. I shall discuss both the

persons.

Mr. Abdul Rehman:

According to me the management style of Mr. Abdul Rehman is Paternalistic.

A form that is also essentially dictatorial, however the decisions tend to be in

the best interests of the employees rather than the business. A good

example of this would be David Brent or Michael Scott running the business

in the fictional television shows The Office. The leader explains most

decisions to the employees and ensures that their social and leisure needs

are always met. This can help balance out the lack of worker motivation

caused by an autocratic management style. Feedback is again generally

downward; however feedback to the management will occur in order for the

employees to be kept happy. This style can be highly advantageous, and can

engender loyalty from the employees, leading to a lower labor turnover,

thanks to the emphasis on social needs. It shares similar disadvantages to an

authoritarian style; employees becoming dependent on the leader, and if the

wrong decisions are made, then all employees may become dissatisfied with

the leader. The leader always leads them into brushing the floor.

Stress: According to me some stresses that he faced are as below:


62

Role demands: His job is to issue payments to venders and organize the

receipts from the dealers. This creates stress situation for him whenever to

pay the payments and on time delivery of these payments. Moreover there is

no chance for him to be promoted on the higher position so it is another

stress for him. Some time he also has to perform some work of his

subordinate or colleague.

Task demands: His task is very sensitive; he issues the checks so he can be

easily trapped for a fraud.

Conflicts: There is conflict that arises some time when the owner (as it

private limited company) asks him to create a withdraw check but he is

bound to not issue without the written permission of Finance Manager. So it

should be called communication problem.

Appreciation: In metro for executive level employees there is no bonuses

and over times, but they are given annual increment and verbal praise.

Now I shall discuss Mr. Aamir Khalid:

Mr. Aamir is GM Finance in the Metro. According to me his management is

Autocratic. An Autocratic or authoritarian manager makes all the decisions,

keeping the information and decision making among the senior

management. Objectives and tasks are set and the workforce is expected to

do exactly as required. The communication involved with this method is

mainly downward, from the leader to the subordinate, critics such as Elton
63

Mayo have argued that this method can lead to a decrease in motivation

from the employee's point of view. The main advantage of this style is that

the direction of the business will remain constant, and the decisions will all

be similar, this in turn can project an image of a confident, well managed

business. On the other hand, subordinates may become dependent upon the

leaders and supervision may be needed.


64

Application of the knowledge/ skills learned during MBIT

studies:

First of I shall write the name of the knowledge and skills that were applied

by me during the internship.

 MS Excel

 MS Word

 Bank Reconciliation

 MS GP Dynamics ERP

 Accounting and Finance Concepts

MS Excel:

The skill that really was handy for me during the internship was MS Excel. I

used Excel in order to create reports of sales. During the MBIT Mr. Asim

Tanveer taught us some techniques that really worked for me. Some of the

techniques of the Excel are as below importance wise:

 Pivot Table technique: It is a technique that makes the report so

much easier and flexible that if you want to perform a two

dimensional report it is very easy by using pivot table technique.

At metro I used to make a report that consisted of dealer wise


65

sale in each month of the year. So I used it and from a raw data

I make an understandable knowledge for my manager.

 I learned many other techniques in the department related to

Excel but that were not applied in the Metro as they were purely

project analysis related but I had not given a work to analyze a

project. These techniques are financial formulas, scenario

analysis, goal seek, data tables analysis. But while doing work on

I learned some new techniques of Excel that I did not knew

before. I shall discuss them in thing learned in the first semester.

 An important concept of VLOOKUP, I used it a lot when I was

asked to create a report that had the discount of each dealer,

each dealer had different discount rate, so I used this formula to

give each dealer its corresponding discount rate.

 I also applied the concept of freeze pan that helped me to match

the values with their labels.

 I used macros to perform the functions that were similar to each

other. I used them as I had to do the same formatting on 70

Excel sheets, so I applied that formatting with one and create a

Macro and use that Macro for all other sheets.


66

MS Word:

In MS Word I used to apply mail merge technique. It was applied

when one of the finance person ask me to write a letter for the

following 70 venders. The text was same the only thing changing was

the name and amount of their balances.

Bank Reconciliation:

In the courses of accounting we learned how to perform the bank

reconciliation, so this helped me in understanding the bank reconciliation

processes of Metro. Although there a slight difference between the wording

and the concept was same.

MS GP Dynamics ERP:

Metro is using customized accounting software the name of the software is

Power Accounting. As we have studied the MS GP dynamics financial module,

so I had no problem to understand the software used by Metro, as both are

similar but a difference is in reporting and advanced options.

Accounting and Finance Concepts:

As I spend my last week with the Accounts department, so to understand the

journal voucher’s entries the concept of accounting and finance learned

through MBIT helped me to understand their chart of account and journal

entries.
67

New things Learned:

I shall give the learning skills and concepts in a category. The list is as below:

 MS Excel’s learned things

 How reporting is performed

 The software of Metro Power Accounting

 Handling of checkbooks and maintaining the bank’s manual register

 Issuing checks and performing their dispatch process

 Sales tax payment concept

 Some little but important things

MS Excel’s learned things:

I had a lot work to perform in the Excel, so I had a chance to practice the

skills learned in the department. In addition to the skills and techniques of

the MS Excel I learned a lot of new techniques of Excel while preparing the

reports. The list of these new techniques is as below learning priority wise:

 Advance filter: This tool helps us to sort filter the redundant or

repeating entries in the fields.

 Subtotals: It is used to get the total of a group of same names.


68

 Sorting with three different levels.

 To paste the things by using paste special. You can use it for

pasting value, formulas or/and formats.

 How to select the data that is only in the front e.g. you have hide

some columns or rows and don’t want to select that, you can use

CTRL+g command to perform that.

 Some important formulas e.g. text(), concatenate, window split,

synchronize scrolling, text to column technique and the number

formats etc.

The software of Metro Power Accounting:

The Metro’s software is also used by some other companies as Master Tiles,

so I learned this software. I learned how to perform journal voucher entry;

cash receipt entry, cash payment entry, sales invoice entry, and sales tax

invoice entry for both new entry and the editing the entry.

How reporting is performed:

I made a lot reports on sale data so I got a concept that hoe these reports

are created and presented to the management.

Handling of checkbooks and maintaining the bank’s manual register:

I learned how companies preserve the remaining half parts of check leaves. I

performed this step for many check books that had been ended. They also
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prepare the payment via check in a register against each check number, so I

learned how they perform this function. On this register they write the check

bank name, then check number in a series, then check issued to , issue date,

clear date and remarks etc.

Issuing checks and performing their dispatch process:

I filled many checks to the venders of the Metro, so I learned the correct way

of writing the checks. I also learned how to dispatch these checks both by

hand and by post. Before the dispatching of each check, the photo copy of

each check is mandatory.

Sales tax payment concept:

While working in Accounts department during the last week of internship I

also learned the procedure of sales tax payments. It is paid the net amount

on input tax and output tax. This concept was new for me.

Some little but important things:

There were some little things but important for office work that are as below:

 How to operate the photocopy machine.

 How to punch the paper in a correct way. The correct way is find

the middle point of the paper by folding it and then insert it into

the punch machine.


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 How to listen and transfer the private exchange phone

accurately.

 How to prepare an office folder for putting voucher in it.


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Summary and Recommendations:

Overall Summary:

Metro Hi-Tech (Pvt.) Ltd. was established by "YUNAS" Group of Industries in

1973, incorporated as a Private Limited Concern on 7th October 1985. It

entered into the business of motorcycle in 2003. Metro is a private limited

company. Its main products are motorbikes that are MR-70 and MR-125.

Company wants to be remained in the business whatsoever the

circumstances are. It wants to meet the customer satisfaction as well as the

number one motorcycle company of the Pakistan in the future. Its business

volume is increasing with a good ratio each year i.e. in 20007-2008 its sale in

units was around 17000 and in 2008-2009 its sale in units is almost is 22000.

Metro has a functional organizational structure. It has eight departments.

Finance department is one of those where I completed my internship.

Metro’s marketing department is very strong as it has good product design

compared to competitors, excellent after sale service.

I did my six week internship at Metro hi-Tech (Pvt.) Ltd. First five week I

spend in Finance department and the remaining one week with the Accounts

department. In finance department I perform the function of reporting on

Excel, Bank reconciliation, bank register maintaining, sales invoice and sales

tax invoices edition, check filling, check dispatching etc. But my main focus
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was on reporting and bank reconciliation. While in the Accounts department I

just got the knowhow of the work. During the internship MS Excel helped me

a lot. By using my skills in Excel I created the reports in minimum possible

time. The technique that I used for this purpose was pivot table.

I learned many new concepts and skills that are as MS Excel’s related

new techniques, how reporting is performed, the software of Metro

Power Accounting, handling of checkbooks and maintaining the bank’s

manual register, issuing checks and performing their dispatch process,

sales tax payment concept and some little but important things.

I really feel that I have got very much during this internship. There is much

to learn in medium companies like Metro. So I suggest students try to get

internship in Metro.
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Recommendation:

For the Organization:

I have some recommendation for the organization:

 It nowadays the electricity problem is very much disturbing the

business, so overcome this problem companies are using generators

as Metro is using itself. When shifting process of energy there is an

interval of workless situation the company must overcome this

problem. They can overcome this problem to give a person full time

responsibility to switch the energy source. The cost of this person will

obviously less than the cost of workless situation.

 There are many areas in the Sindh and NWFP that are not covered by

Metro for selling purpose, As a result its competitor are enjoying in

that areas, Company must try to create its dealership setup in that

area.

 The lead time is very high company must reduce it by bringing quality

workers in the production process. If the lead time will be reduced the

company can also reduce the delivery delay.


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 As company is growing its requirement for the capital are increasing,

and the company is getting loan at a high rate from the banks, The

owners must bring some new investors in the company either by

making it public limited or issuing bond as it is a cheaper way of

gathering capital as compared to banks.

 Company has not yet implemented ERP software, It should implement

it in all areas e.g. production, finance, payroll.

 During my internship I felt that employees are very not motivated

because of the salary issues, they feel that the salaries given to them

are not sufficient, Company must create a payroll system that pays the

employees according the market.

 Another thing that I notified was the wastage of time by employees;

company must keep strict monitoring on the employees in order to

minimize the time wastage. This thing can also be reduced by two

things. Number one company should increase their salaries and involve

them in decision making, this will feel them that they have create this

goal and they have to achieve it.

For the IBIT:

 First and most important suggestion for IBIT from me is that it must

create career counseling cell that may search the internships for the

students. This cell must contact the companies, must organize the
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seminar by inviting the different HR managers. There must a strong

marketing of the department that is lacking.

 Many of the teachers don’t complete their course outline study

package due to many holidays or request of course reduction by

students. It must be discouraged by the management of the

department. Department must ask the teachers that they have to

teach so much course.

 Most of the papers are consisting of MCQ’s but I suggest that the

papers must be consisting of both the MCQ’s and the subjective

question.

 Many courses of IT e.g. programming and networking are useless for

business students, Department should change these courses with the

courses that can increase the worth of student as a management

student nevertheless these course are IT related or management.

 An important course that was not taught to us is “Project

Management”; I strongly recommend the department to include this

subject as a compulsory for all.

For the students of IBIT:

I strongly recommend the students of the IBIT that they should try to get the

internship in this organization, as there is much to learn in Metro, because

nor it is fully ERP implemented neither it is fully manual, It’s a combination of


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IT and manual work organization so you have the possibility to learn both

ways.