INTERNSHIP REPORT ON

CECO TYRE GUJRAT (Pvt.) Ltd.

Internship Report submitted to the Faculty of Management & Administrative Sciences in

Partial Fulfillments of the Requirements for the Degree of Masters of Commerce.
.

MBA (HRM) sec G

UNIVERSITY OF GUJRAT
Date of submission
13th Sep, 2013

Name of Internship Assessor______________________

Signature______________________________

Part-1
Introduction of the organization
The Ceco Tyre Industries is basically tyre manufacturing company which is
incorporated in Pakistan on the 25 th of May as Private Limited Company under
the companys act 1913 which is currently known as Company Ordinance, 1984.
Company is now manufacturing and sale tyre tube and has been Pakistan largest
exporter of tyre products. Ceco Tyre products are export to Indonesia, Australia,
France, Italy and UK.
Being the largest tyre manufacturer of Pakistan Ceco Tyre industry has facility
located in Gujrat in Pakistan. There are totally 700 employees are working in
different factory department. They are producing different type of tyres.

Motor bike tyres

Bicycle tyres

There are different no of employees working in factory according to the needs.

Some time emergency labour also employed to full fill the work load need. These
employees are fully skilled and playing important role in the development of the
industry.
1.1 Tyre division of Ceco
Tyre division of Ceco Tyre has two units which are producing tyre and tube.

These units are motorcycle tyre and tube unit, cycle tyre tube unit. Both unit of

tyre division is ISO 9001 certified these both units are located at Gujrat. Tyre
division are providing mostly tyre to Atlas Honda limited. Dawood Yamaha and
sohrab bicycle Company.
Sale network of the tyre division expand on 7 distributors in which 4
distributers for bicycle and 3 for sale of motorcycle tyre tube. Production
capacity of bicycle tyre and tube is 1000 and 1200 per day. Similarly
production capacity of motorcycle tyre and tube is 1500 and 2000 per day.
Ceco Tyre industry hold 15% market share of motorcycle tyre and tube
and25% market share of bicycle tyre and tube.

Vision

To be a market leader with providing quality tyre & tube and. To strive for
excellence and global recognition by continuous improvement, Innovation,
dedication and growth.

Mission
To be result oriented and profitable company by consistently improving market

share, Quality diversity, appearance, consistency and customer acceptance.

To come into view as a growth oriented concern ensuring optimum return and
value addition to its shareholders.
To provide the tyres: best in quality and reasonable in price.
To create an efficient resource management and conducive business
environment, involving an effective leadership by creating a highly professional
and motivated management team fully equipped to meet challenge.
To keep abreast with modern technology and designs to optimize production and
enhance brand image to attain international recognition for the companys
products.
To set up high ethical business standards and be a good corporate citizen,
contributing toward the development of national economy and assisting

charitable causes.

2. OVER VIEW OF THE ORGANIZATION

2.1 History of the organization
In the year 1978 the Cheemas family started their first own business in Gujrat as
Gujrat Flour Mill. They run this business for three years and after that they
invested in Ceco Tyre Industry. So in 1981 they started their Ceco Tyre business.
The first CEO of Ceco Industry was Jahangeer Cheema. Cheema family spend
their whole money in this business.
2.1.1 Expansion

After few year of working company management started to think about the
expansion of business they are searching for new markets and they felt the need
of new site for installation of factory to meet the demand of new markets. So they
bought the land around the factory and extended the boundaries of the factory.
With the passage of time they started new department inside the factory.
2.1.2 New Retail Shops

The company had open the whole sale and retail shops in all over the
country in Pakistan. That time company introduces a new way of selling
product at fixed price, which was much acceptable and appreciated by the
customer.
2.1.3 Export

After getting strong position in all over the country management decided to

reach the international market and targeting international trough export.

Due to the quality of product and at time delivery of goods Ceco Tyre
industry got a reasonable share in international market.
2.2 Nature of the organization
Ceco Tyre is industry limited is basically a manufacturing company tyre main
business is manufacturing of tyre and tube of different type. At the start of
business Ceco Tyre is concerned with providing best quality of product to
customer. Ceco Tyre is meeting the demand of customer not at local level but
also outside the boundary the name of company.

2.3 Future prospects of the company

The world economy as whole facing crises these days but company is making
effort to facing this challenging situation. Inflation rate are rising in Pakistan which
cause the increase in raw material cost even while importing from other country
because Pakistani currency going devalue against other currencies. At the other
hand utility charges and energy crises is increasing day by day so in future
company making efforts to install the modern machinery which consume less
energy and produce goods in best quality.
Company is making effort to adopting online system which reduces the time of
inter industry transaction. Company continues to invest in modern technology
which will be beneficial for the company in coming years.
Management of the company making efforts to find new markets in world and
also making effort to make good relation with supplier and finding supplier which
provide better quality at low cost, the purpose of this is providing best quality

product to customer at reasonable price.

2.4 Product Line

Product line of the company is basically explained under one head
Rubber products
2.4.1 Rubber Products

Rubber products basically include Tyre and tube which is supplying to market.
Mainly customer of tyre and tubes of Ceco Tyre industry is

Atlas Honda Limited

Dawood Yamaha
Sohrab Bicycle Manufacturing Company

Tyre division sales network comprises of 7 major distributers in which 4

distributers are for bicycle tyre and tube and 3 for motorcycle tyre and tube sales.
The major brands of tyre and tube for auto and bicycle which are registered
brand is following
Racer
Super Star
Hi speed
Long life load
Long Life
Cheetah
Cheetah Plus
Golden Star
Super Trail

Bicycle
Bicycle
Bicycle
Bicycle
Auto and Bicycle
Bicycle
Auto and Bicycle
Bicycle
Auto

2.5 PESTL Analysis

PESTL analysis is analysis of five factors which can affect the organization these
factors are

Political Factors
Economic Factors
Social Factors
Technological Factors
Legal Factors

Political Factors

i)
ii)

Politically instability in country badly affects the Ceco Tyre industry.

Management of the company is influence by the politically parties

iii)

working in Gujrat.
Ceco Tyre industry providing benefits to their employees like old age
benefit, pension funds etc. which is opportunity providing by the

iv)

government to the company.

Government of Pakistan making efforts to increase export. Ceco Tyre
industry can get benefit from this to increase their foreign markets

v)

share.
Due to world trade organization tariff and restriction on trade is
decrease which is opportunity for organization to import low cost

tax which decreasing their net profit margin.

vi)

material and export finished goods to outside the country.

Ceco Tyre is a registered company due to which they are liable to pay

Economic factors

i)

Interest rate is rising in country which increases the cost of debt for

ii)

company.
Due to devaluation of local currency high amount is payable to foreign

iii)

supplier which increasing the cost of product.

Due to high inflation its becoming difficult for company to stable the

iv)
v)

price of their product

Ceco Tyre industry playing a reasonable part in the growth of country.
Ceco Tyre industry manufacturing product to facilitate all economic
classes of people.

vi)

Ceco Tyre industry playing a role in decreasing unemployment in local

area of Gujrat.

Social factors

i)

Population growth rate of Pakistan in high which has positive sign for
company. It shows that there is space vacant to which company can

ii)

target.
People are now want comfortable and reliable product so this can
increase in demand of product of Ceco Tyre industry.

Technological and legal factors

i)
ii)

Advancement in technology increases the efficiency of production.

Rate of change in technology is slow in this industry which beneficial
for Organization Company can get benefit from one technology
maximum.
Electrical machine is used for attendance make it time saving for
employees and its helpful for management to maintain the attendance
record.

iii)

iv)

Due to use of machinery in production cost of spoiling of product

decrease and quality of product increase.

Legal factors

i) Current home market legislation

ii) International trade legislation
iii) Industry specific regulation and competitive advantage
Environmental factors

i)

There is insufficient availability of clean water which is necessary to

ii)

arrange for employees.

There is four season in our country. Company can operate their
business in each weather condition.

iii)

Typical weather condition of summer affect the production if tyre and

tubes.

2.6 Contribution of the Organization toward economic

development
It is necessary for the organization to do some for the economic growth of
the country. Ceco Tyre industry also takes many steps for the growth of
economy. They have great deals to their customers, employees and
communities. They classify corporate social responsibility under the
following heads.

National cause donation

Community investment and other areas

2.6.1 National cause Donation

Flood Relief activities

This project has the following hallmarks

Provision of one month food supply
Provision of water pumps in houses
Community Investment

Azeez Bhatti Shaheed Hospital

3. Organization Structure
Organization structure is very important element of any organization.
Organization structure is shown by the hierarchy of the organization. It is visual
map of chain of command.

3.1

CEO

General
Manager

Account
Manager

Manager
Costing

Manager
I.T

Manager
Purchase

Manager
HR

Chief
Security
@

Chief Tech
Manager

Chief
Engineering
Support

Manager
Industrial
Engineering

Manager
Industrial
Relation

Manager Ware
House

Manager
Warehouse

Factory Manager
Tyre & Tube

Productio
n
Manager

C.T.T
Manager
Technolog
y
Planning
Manage
r

Manager
Productio
n

Productio
n
Manager

M.C.T.T

Factory Manager
Rag Division

3.2 Number of employees

Ceco Tyre industry is one of the biggest organizations of the Pakistan. it is also a
leading tyre production company of the Pakistan. In start it has small no of
employee but now company has expanded. its production capacity has increased
in large extend. Today the group is Pakistans 3 rd tyre manufacture and exporter
with interest in whole sale and retail sector. Now the total no of employees
working in Ceco Tyre industry is 700.

3.3 Main Office

The Ceco Tyre company has its head office at Gujrat. Company finance and
marketing staff also working in Head Office .Main office of the company is
situated at river Chenab Gujrat.

3.4 Introduction of departments

Departmentalization is necessary for every organization to perform the work
efficiently and effectively. Departments are clustering of individuals into groups
and clustering of these units into departments. Departments are making on
different basis. Ceco Tyre industry has made department on the basis of
functions which they perform in achieving the organization Goals i.e. HR
department and Production department. Different peoples are working in these
departments and in Ceco Tyre industry a department is headed by a manger.

3.5 Departments in Ceco Tyre industry

These are the departments which are working in Gujrat Ceco Tyre factory where
I done my internship

1. Production Department
2. Accounts Department

3.
4.
5.
6.
7.
8.

Material management department

Human Resources Department
Where house for finished goods
Costing Department
Technical Department
Quality Department

3.5.1 Production Department

Production department is key department in every manufacturing organization. In

Ceco Tyre industry there is one main production department which is following

Tyre and Tube Department

Tyre and tube factory is department which is design for the production of tyre and
Tube. Tyre and tube department further divide into two sub departments Bicycle
tyre and tube and motorcycle tyre and tube.
3.5.2 Accounts Department

Ceco Tyre industries limited have accounts department in Gujrat factory. This
department handles all the accounts related activities there are six people
working in this department. Work is divided between the employees who are
working in this department. This department deals with salaries, wages, Account
receivable, account payable, Bill verification, provident fund, pension fund, loans,
day to day expanses. Now currently E.R.P data base system is installed which
work very efficiently. Accounts departments are further divided in two sections
One is deal with wages and salaries
Second is purely deal with other accounts activity

3.5.3 Material management department

Material management department plays key role in any organization. Ceco Tyre
industry also have a material management department according to need of their
work. Material management department of Ceco Tyre industry basically play role
of purchasing of raw material or any other material or machinery which is
necessary for operation. These materials are purchased from domestic supplier
and also from foreign supplier. Material management department handles the
both. Some sub departments are also working under material management
departments. These are following
1. Purchasing of raw material
i. Domestic purchase
ii. Foreign purchase
2. Receiving room
3. Raw material stores
3.5.3.1 Purchasing department

Purchasing department is responsible for make sure of availability of required

material. Purchase department of Ceco Tyre industry further divided into two
departments one is domestic purchase and other is foreign purchasing
department. Both purchase sub departments is head by a manager. Purchase
department arrange material according to the material demand sheet which is
received from the planning department.
3.5.3.2 Receiving Room

Receiving department is designed to firstly handle the all raw material or any
other things related to Ceco Tyre industry. Receiving department received goods
and then sends them to their proper designation. It is duty of receiving room to

check the material according to the delivery challan. Receiving room then send

sample of material to the quality department to check the quality of material if

material is ok than it moved to send to the store room and if material is according
to the quality standard it send back to the supplier.
3.5.3.3 Raw material stores

Raw material store is built in Ceco to store the material when it received from the
supplier and then issue it when there is in need for material in production
department. In raw material store material is store in proper mannered.
It is also duty of store room to issue material to the production department
whenever they demand for it.
3.5.4 Human Resource Department

There is need of human resource department in every organization to manage

the employees of the organization in this way that they become efficient and
effective employees. Ceco Tyre industry Gujrat has also set up the Human
Resource department.HR department of Ceco Tyre industry is responsible for the
Hiring and firing of job in organization. It is also responsible for transfers of job
from one department to the other department. For the hiring of staff HR
department as define job specification and job description. When Hr department
hire employee there is need to train them according to nature of work Hr
department also arrange training program for employees. This training program
some time also arranged for the old employees to update their knowledge and

skills.HR department also responsible for the maintain the record of employee.

3.5.5 Quality Control Department

Quality control department is organized in Ceco Tyre industry to insure the

quality of goods. Quality control department is equipped proper tool and
machinery to check the quality of raw material and finished goods. Quality
standard are define in Ceco Tyre industry which is properly communicated to the
Quality manager and the other workers which are working in quality department.
There is proper check and balance maintain by the higher management on
quality department to insure that they are working properly. Management is
working to insure to meet the quality standard ISO 9001: 2000.Quality manager
is responsible to report to the higher management about any discrepancy in
finished good quality.
3.5.6 Technical department

Technical department in Ceco Tyre industry is working to support main

production department. It deals with the process of chemical and rubber process.
Laborites for testing different material are also working under the technical
department. There are two laboratories are working in the Ceco Tyre industry one
is for tyre division which is main laboratory and other is for tyre division Technical
department is headed by the chief technical officer.
3.5.7 Where house for finished goods

After converting raw material into finished goods it is necessary to store the
finished good properly until their dispatch to buyer of goods or outlets of Ceco
Tyre. In Ceco Tyre industry different store are working for the storage of retail
store, export and Wholesale product. In store finished goods are stored in a

proper way according to their dispatch needs.

3.5.8 Costing Department

Costing department prepare the cost sheet of any article. It explains the each
cost which is incurred on the production of that article. Costing department is
responsible for preparation of cost sheet, preparation of material estimate sheet,
Monthly profit and loss statements, calculation of material labour and FOH,
preparation of annual budget on production base.

Part II
Internship program
I did my internship in Ceco Tyre industry Gujrat from 10-07-2013 to 21-8-2013
I completed my internship program in two department of Ceco Tyre industry
which is material management and accounts department. Both departments are
the key department of the organization. Before the explanation of internship
program its necessary first to introduce about these two departments.

4.1 Material management Department

Material management department plays key role in any organization. Ceco Tyre
industry also have a material management department according to need of their
work. Material management department of Ceco Tyre industry basically play role
of purchasing of raw material or any other material or machinery which is
necessary for operation. These materials are purchased from domestic supplier
and also from foreign supplier. Material management department handles the
both. Some sub departments are also working under material management

departments. These are following

4. Purchasing of raw material

iii. Domestic purchase
iv. Foreign purchase
5. Receiving room
6. Raw material stores
4.1.1 Purchasing department

Purchasing department is responsible for make sure of availability of required

material. Purchase department of Ceco Tyre industry further divided into two
departments one is domestic purchase and other is foreign purchasing
department. Both purchase sub departments is head by a manager. Purchase
department arrange material according to the material demand sheet which is
received from the planning department.
4.1.2 Receiving Room

Receiving department is designed to firstly handle the all raw material or any
other things related to Ceco Tyre industry. Receiving department received goods
and then sends them to their proper designation. It is duty of receiving room to
check the material according to the delivery challan. Receiving room then send
sample of material to the quality department to check the quality of material if
material is ok than it moved to send to the store room and if material is according
to the quality standard it send back to the supplier.
4.1.3 Raw material stores

Raw material store is built in CECO to store the material when it received from
the supplier and then issue it when there is in need for material in production
department. In raw material store material is store in proper mannered. Racks

made in store to save the different types of material.

4.1.4 Accounts Department

Ceco Tyre industries limited have accounts department in Gujrat factory. This
department handles all the accounts related activities there are six people
working in this department. Work is divided between the employees who are
working in this department. This department deals with salaries, wages, Account
receivable, account payable, Bill verification, provident fund, pension fund, loans,
day to day expanses. Now currently E.R.P data base system is installed which
work very efficiently. Accounts departments are further divided in two sections

One is deal with wages and salaries

Second is purely deal with other accounts activity

4.2 Material Management Department

I did three weeks work in purchase Department of the material management
department. Purchase department of the Ceco Tyre industry is like a backbone of
the organization because the availability of material at time is important to meet
the production order. In Ceco Tyre industry working of purchase department is
very complicated because they are dealing with many items at single time. To
done the work efficiently and effectively purchase department are further divided
into two sections which are following

Foreign Purchase
Local/Domestic purchase

4.2.1 Foreign Purchase

Foreign purchasing sector of the purchase department deals with all the
purchase which is done from the supplier outside the country border. in start

when I join material management department as internee legacy system was

using to record the data. In this database system a code is given to each activity
which is performed by purchase department. Operator can check the status of
transaction trough putting this code. A password is given to the related person
to protect the misuse of data base. Operator must have to put the password to
access the legacy software. But now the new database system is installed to
maintain the record of the transaction. This database software is known as ERP.
ERP is stand for Enterprise resource system.ERP data base system is based on
Oracle. it is online system of database trough which operator can work from
anywhere using internet. An account is given to each employee. He can access
using this account and password.
Delivery time which is allowed in foreign purchase is 90 days.
4.2.2 Local purchase

Local purchasing sector of the procurement department deals with items which
are purchased from the local dealer inside the country. Local purchasing is also
known as domestic purchasing. Delivery time available to supplier is three
months in which they are compelled to deliver good in the organization after
receiving the purchase order. Eight people are working in local purchasing
department. Local purchasing department is also using the same data base
system which is used by the foreign purchasing. Local purchasing usually deals
with purchase of following items
Packaging Material
Other Miscellaneous

Different person in department deals with different items and they are responsible
for the availability of their material at time.

4.3 Details of supervisors

In production department following are the my supervisor who guided me and
supervise to achieve my goal.name of supervisors and their positions in the
department is following
Name

Designation

Shahzad Ahmad

Manager Purchase

Muhammad Aslam

Asst Purchase

Other staff:
Account Manager
Sales manager

Muhammad Naseem
Wasif Cheema

Faizan Zahid
From: 10-07-2013 To 21-08-2013

Serial

Date

Day

Activities / Task

#
The
01

10-07-13

very

first

day

they

gave

me

Wednesday introduction about the department.

Brief me about the basic activity of

02

11-07-13

Thursday

purchase department, study of different

documents

and

understanding

basic

terminology.
Understanding of purchase demand cycle.
03

12-07-13

Friday

learn how its work

Learn how to operate ERP (Enterprise

04

15-07-13

Monday

resource system). Help seniors in

performing their tasks.
Study of material estimation sheet; learn

16-07-13

Tuesday

from supervisor about terminology used in

sheet.

05

Purchase Department

Week No 1

Week No 2

Purchase Department
Faizan Zahid
From 17-07-2013 To 23-07-2013

Serial

Date

Day

Activities / Task

#
Learn how to foreign purchase made and what is
01

17-07-13

Wednesday

necessary for foreign purchase. enter data in

system in purchase related reports
Make quotation of material with the help of

02

18-07-13

Thursday

supervisor. dispatch these quotations to the

suppliers
Learn how to make purchase order. Assist

03

19-07-13

Friday

04

22-07-13

Monday

seniors in performing their

Help supervisors for the closing of monthly work

Make purchase orders with the help of seniors.

23-07-13

Tuesday

Dispatch purchase orders to the suppliers.

05

Week No 3

Purchase Department
Faizan Zahid
From 24-07-2013 To 30-07-2013

Serial

Date

Day

Activities / Task

#
Checked
01

24-07-13 Wednesday

invoices

received

by

the

suppliers with material. compare them

with

the

purchase

order(check

rate,

quantity, confirm from receiving room for

receiving of material)
. Send invoices to cost department for tax
02

25-07-13

Thursday

deduction and then send to the accounts

department.
Understand about local purchasing.

03

26-07-13

Friday

Make purchase order for local suppliers

Make purchase order and enter data in

04

29-07-13

Monday

the data base to update the records

Review the purchasing records and take

30-07-13

Tuesday

the print out

05

Week No 4

Accounts department
Faizan Zahid
From 31-07-2013 To 06-08-2013

Serial

Date

Day

Activities / Task

#
. First day in accounts department get
01

31-0713

02

01-08-

Wednesday introduction about the departments

activities.
Learn what debit note and credit note is
Thursday

and how to prepare it on ERP

13
Make debit and credit notes with the help
03

02-08-

Friday

of seniors.

13
Learn what tax certificate is and why it is
04

05-08-

Monday

13
05

6-08-13

prepared. Make some tax certificate with

help of senior.
enter data in ERP data base

Tuesday

Week No 5 Accounts Department

Faizan Zahid
From 07-08-2013 To 13-08-2013

Serial

Date

Day

Activities / Task
Faizan Zahid

From 14-08-2013 To 20-08-2013

Learn to prepare purchase voucher and
07-08-

Serial13 Date

Wednesd
ayDay

Activities / Task
Posting of entries of daily inside

#
02

make purchase voucher.

08-08-

Thursday

01 13 14-08-

transactions
Holiday: independence
into ledger. day

Wednesda
Eid Holiday

13
y
09-08Friday

03

02 13 15-08-

Thursday

13
12-08Monday

04

03 13 16-08-

Friday

13
13-08Tuesday

05

04 13 19-08-

Monday

13
05

Week No 6

Work for preparation of wages sheet.

Eid Holiday
Make entries in account receivable with

the help of supervisor.

Understand preparation of electricity duty
WorkAnd
with
thewhy
person
who deal social
challan.
lean
it is prepared.
security of the wages and learn how they
perform these operations.
Calculate employee wages,

20-0813

Work in wages section of the account.

Tuesday

wages

sheet

according

prepare
to

their

attendance.

Accounts Department

01

Week No 7 Accounts Department

Faizan Zahid
21-08-2013

Seri

Date

Day

Activities / Task

al
#
At last date of internship make some
21-0813

Wednes general discussion about working.

day

My

Supervisor shares some his experiences

with me. and say me bye with best wishes

01

5 Operation which are performed by Purchase

department
Purchasing department of Ceco Tyre industry has basic function of purchase of
raw material from a supplier who provides best quality at possible minimum price.
This purchase of material is not a simple task work force of purchase department
different purchase department is following

Issuing purchase order.

Purchase order transfer to supplier.
Verification of delivery of quantity according to purchase order.
Verification of bill after receipts of goods.
Transfer voucher to tax department for deduction of sale tax of supplier.
Transfer voucher to accounts department for payment to supplier.

5.1 Purchase Demand Cycle of Ceco Tyre industry

Purchasing demand cycle is a system includes the steps which are undertaken
for completing the purchasing process. Before the getting knowledge about the

operation which is performed by the purchase department it is necessary to

understand the purchase demand cycle which is being followed in Ceco Tyre
industry. Purchase demand cycle includes the all process which is taken
organization from the creating demand of material to issuing of material to
production unit and again generating of demand. It starts from the production
department and end with the raw material delivery to production department. It
includes the following steps

Production department
Model and purchase room
Quotation
Purchase order
Supplier
Goods delivery
Receiving room
Goods delivery to PU

Production Department

At the first production department demand of material they need. This need of
material may be to fulfill the routine production or to meet the some urgent
production demand production department give the order of purchase of material
trough material estimated sheet which is generated by the help of cost
department.
Purchase department

When the demand of material or material estimation sheet is received to the

purchased department, purchase department categorize them according to the

time available in need of material.

Quotation

Purchase department than contact with suppliers and send quotation of material
to the suppliers and ask them to send detail of price, quality and time of delivery
which they can provide.
Purchase order

After selecting suitable suppliers which will provide best quality at lowest price
purchase order is generated in the name of that supplier and then send to the
supplier.

Supplier

After receiving of order of goods supplier make arrangement of delivery of goods

and at settle date supplier make delivery of goods to the company.
Delivery of Goods in organization and Receiving

At due date material is delivered to the factory and receiving department of the
Ceco Tyre industry received it according to the voucher, Then Receiving
department send sample of material to quality department for quality checking. If
material is according to the quality standard material is send to the raw material
store.
Goods deliver to the production unit

At the end production department received material according to the needs.

5.2 Purchase quotation

Purchase quotation is prepared after receiving the material estimation sheet.
Purchase quotations are sending to the different suppliers and asking them to

send detail of material quality when they can deliver and price and sample of

material. After receiving respond from the suppliers is selected who provide good
quality in lowest price.
5.2.1 Purchase quotation includes

Purchase quotation includes the following points

Name of the company is written on the top of purchase quotation.

Name of the vendor to whom purchase quotation will send.
Date of the preparation of quotations.
Detail of the material which is required and conditions under which

required,
Signature of the person who prepare it and signature of the purchase
manger.

After preparation of purchase voucher two copies or made

One is sent to the party

2nd is attached in file for record

5.2.2 Salient features of purchase order

Purchased order which is produced in Ceco Tyre industry on which I work during
my internship has different features or points which is included in the purchase
order of the Ceco Tyre industry is following
At the top name of the Ceco Tyre industry is written
Date of the preparation of purchasing order is mentioned
Name of the vendor
Detail description of material which required. Its include quantity, material
code units, delivery date.

Purchase order number

5.2.3 Making of purchase order

During my internship I prepared purchase voucher. To prepared the purchase

voucher on ERP system following steps should be taken

At the first login to the ERP system by ID and password is providing by

management.
Go to purchase sections and select the purchase order preparation
A box will open on desktop.
Fill the information require like name of vendors, date of preparations,
explanation about material, date of delivery, material code which is

assigned by the company.

Click on the report submission button.
A box will open and showing the report submission in process.
After some time ERP system automatically will produce purchase order.

After preparation of purchase voucher print it and prepare three copies of it

One copy is send to the supplier
2nd copy is attach in purchase voucher file
3rd copy is send to the head office of the company

5.3 Verification made after receiving of the material

After material is receive by the receiving department of the company. Invoice of
the material is send to the purchase department. Then verification is made from
the receiving department about the quantity of goods. And verification is also

made about rate which is written on the invoice match the rate with the rate at

which material is ordered. If rate charge in excess or low it is informed to the

suppliers and clear ambiguity.

5.4 Sending of invoice to the tax department

After all verification invoices are sending to the tax department for deduction of
tax. At time of sending rough record is maintained on the daily activity register
with the invoice no and party. The purpose of maintaining rough record is to
memorize the how many and whose invoice sent to the tax department because
after tax procedure done by the tax department it will receive back for further
procedure.

5.5 Sending of invoices to the Accounts department

After tax procedure invoices are send to the account department for the posting
of invoices into accounts payable and payment to relevant party on due date.

5.6 Department of Accounts

I did my three week internship in Accounts department of Ceco Tyre industry.
Date of internship in accounts department is from 31-07-2013 to till 21-08-2013.
During my internship program I performed different activities in accounts
department. During my internship I get some basic knowledge about the features
are characteristics of accounts department. These basic characteristics of

Ceco Tyre industry is using double entry system to record their financial

truncation.
Ceco Tyre is newly installed ERP data base system which is based on

oracle to record data.

Accounts professional are hired to manage the accounts.

accounts department is following

Financial transaction of business is recorded in their relevant books. Different

accounts related activities are classified in to different heads under which all
record is maintained. To increase the efficiency of work all work is done trough
computers. It also helps to reduce the paper work and on the other hand it
decreases the errors in work.

5.6.1 Order Management module (OM)

Order management module is a system in which data is recorded on dispatch

basis. All financial data firstly record in this module and then send to the final
accounts department with the invoices. Any modification if required is made in
this data trough debit note or credit note. After issuance of debit note or credit
note it is verified by the the supervisor or assistant manager of the accounts
department. There are are different types of sub modules which are being used
in accounts department these are following

Account payable or Creditors

Account receivable
Fixed asset
Long term Assets
Foreign currency

5.6.1.1 Account payable or Creditors

All the transaction which is related to liability of paying is recorded under the
head of account payable. All payments to the suppliers made under this account.

Debtor notes are issued to the supplier in case return of goods.

5.6.1.2 Account Receivable or debtor

All the receivable transaction is recorded under this head. All receipts from the
customer in against of sale are made through this. Credit notes are issued to the
customer if any sale return is made.
5.6.1.3 Long term Assets

Long term assets is also called fixed assets in Ceco Tyre industry for the
recording of fixed asset this sub module is used. Assets are also depreciated and
their depreciation entry also made under this module. Ceco Tyre industry is using
different types of method to calculating the depreciation according to the nature
of the assets.
5.6.1.4 General ledger

In Ceco Tyre industry to record the intercompany transactions of the business

general ledger is being use in Ceco Tyre industry. The transactions includes the
company daily office expenses, inter department material transfer.
5.6.1.5 Foreign currency

This sub gives the foreign exchange rate in different currencies. This spot rate
could be used in export invoice. Current spot rate is use to calculate the value of
invoices.
5.6.2 Sources of receipts and payments liability

Ceco Tyre industry Accounts department has different sources of receipts and
payment. Following or the sources of receipts and payments

Sources of receipts
Sale of tyres to the retail store

Foreign selling of tyres

Sale of tyre and tube

Payments

Utility expenses
Payment of salaries to office employees
Payment of wages to workers
Payments of tax on sales
Payment of custom duty
Payments in contribution to the provident fund of the employees.
Payments are made to local supplier of material

5.7 Operation performed in accounts Department

During my internship in accounts department I perform the different operations in
department. These operations are being performed in department. Following are
the activities assigned to me during my internship program on which I work
during internship

Preparation of debt note

Preparation of creditor note
Preparation of tax certificate issued to the supplier
Posting of purchase voucher
Preparation of sales tax invoice

5.7.1 Preparation of Debit notes

During my internship program I work on the making of debit note which is usually

is made against the supplier. The main purpose of making debit notes is following

Anything missing in the purchase order made by purchase department is

charged by the suppliers like the delivery charges or transit expenses.

In purchase order specific quantity of material is mentioned which is
ordered but some time if supplier did not send material according t
mentioned quantity if quantity received is less than ordered then debit
note is made for adjustment of shortage

5.7.2 Preparation of credit notes

As the debit note credit note is also made to rectify some mistakes but it draws
against the buyer of the product. This note is use to make adjustments of mistake
accrued. Some or the main and important reasons for drawing the credit notes is
following

When the product which have sold returned by customer credit notes are

prepare for the adjustments of the returned goods.

If the goods are disfigured within the warranty time period and returned

credit notes issue

If the price of the product overcharged than credit note also make for
adjustment.

5.7.3 Tax related activities

In Ceco Tyre industry accounts department treat two types of tax during my
internship I understand these types of taxes and also learn how we can well
handled its. Types of taxes are following
Tax payable
Sales tax
Income tax

5.7.3.1 Tax payable

Any customer who purchases our product is liable to pay tax. This tax is get from
customers and then it is paid to the Federal Board Of revenue. Tax certificate is
received from FBR for payment of tax. Company also pays tax to the suppler on
the purchase of raw material which is recoverable in the future. In case of tax
payable its important to know that tax payable is not directly received by
customers and in case of tax recoverable it also not directly paid to the supplier.
5.7.3.2 Sales Tax

Sales tax is which is imposed when the company done the sale. Sale tax is
calculated on the amount of total sale. A certain percentage or rate is applicable
on sale for tax purpose.5% tax rate is for the sale of material.
5.7.3.3 Sales tax invoice

During my internship I work on the preparation of sales tax invoice. Sales tax
invoice is written document which is basically make to calculate the sales tax.
Sales tax invoice includes the different information which is necessary to include.

First of all the name of Ceco Tyre industry is written on the invoice with the

complete address of the organization.

It includes the address of the head office of the company.
A national tax no is assigned to the company by tax authority this also

written on tax invoice.

Name of the buyer and their sales tax no also written on the sales tax

invoice.
Date of preparation of sales tax invoice.

Sale tax invoice prepared in Ceco Tyre industry includes the following

All information about the goods sold related to their quantity. Price is

written and units are also mentioned.

Sales tax invoice also signed by the person who prepared it.
At the end name of company is mentioned who issuing the sales tax

invoice.
At the end sales tax invoice is signed by the manager of accounts
department.

5.7.4 Preparation of tax certificate issued to the supplier

Payments to the supplier against the purchase of material are made after the
deducting of amount of tax.16% tax rate is applied to the purchase. After
deduction of tax this tax is paid to the Federal Board of Revenue, now the
company responsibility to issue a certificate to the suppliers. This certificate is
proving of tax payment supplier keep it with for meeting any inquiry by Federal
Board of Revenue .tax certificate issued to the suppliers include the following

Name of the issuer

Date of the tax payment and date of issuing of certificate
Tax invoice number
Name of the supplier to who tax is paid
Amount of the tax paid
A copy of payment to the Federal Board of Revenue is also attached with
Tax certificate is signed by the manger of accounts.

5.7.5 Preparation of Purchase invoice

During my internship program I work on the preparation of purchase voucher.

Purchase voucher is made according to the bill received from the supplier.
Accounts department received bill from the purchase department. Purchase

voucher is made with the name of supplier.

Contents of purchase invoice

There are different steps involved in the preparation of purchase voucher.

According to the steps of making purchase voucher purchase voucher

includes the following

Name of the vendors written on the right side of the purchase voucher.
After the name of the vendor amount of invoice is written unit of currency

should be write.
Below the name of vendor site code is mentioned.
Invoice Date is writing after the vendor code in the same row but in next

column.
In the third row invoice no and voucher number is written in different

column.
In the 4th row name of company with location is written
After it all description is made due to which purchase invoice is made all

calculation is shown in it.

At the end total amount is also written on the purchase invoice.
There should leave space for the signature of three different authorities
which or prepared by, checked by and approved by.

For the preparation of purchase I work on the computerize Enterprise resource

system which is oracle application. Proof reading made before final printing of the
purchase voucher is necessary. One copy of purchase voucher is given to the

cashier and one is keeping in the record.

5.7.6 Preparation of wages sheet

Accounts department has separate section for wages. Wages sheet are prepared
at the end of each month. At the end of each month attendance of each worker is
received by each department. Wages sheet are prepared according to the
attendance sheet received following steps involved in making of wages sheet.

Calculate the regular working hours according to the attendance.

Multiply regular working hours and per hour wages
Make calculation of overtime if any worker has.
Deduction is made for amount as installment of loan which is received by

customer.
At the end final total of wages is made which is payable to worker.

5.8 Summary of learning

5.8.1 Skills and qualification I gained during my internship

I did my internship in Ceco Tyre industry from 10-07-2013 to 21-08-2013 in

material management and accounts department of the Ceco Tyre industry.
During my internship program activity and task which is given to me help me to
enhance my knowledge and skills.
At the start of internship my confidence level was low for dealing with seniors and
peer group but with the guidance of my supervisors in early I get my confidence
and learn how to deal with others. Dealing with others help to improve my
communication skills. During my internship in purchase department when I saw
my supervisor to communicate with the outside parties specially suppliers I
learned trough observation how to deal in official way and how we can establish

a good relationship with suppliers.

During internship I worked on the ERP system which is database software.

Which increase my knowledge and skills which is a positive add in my abilities.

5.8.2 Responsibilities I have undertaken during my internship

The purpose of internship program is to get skills to full fill the different types of
responsibilities in a good way. During my internship program different kinds of
responsibilities are given to me to perform. Responsibilities which are
undertaking is following

In purchase department my supervisor assigned me task to classify the

items include in material estimation sheet according to their time span

which is available.
In the cash office of the accounts department my supervisor gave me
responsibilities to count the cash and pack them according to the salary

per worker with the name of worker.

In purchase office my supervisor gave me responsibility to complete the
inside the department transaction like delivery of report from one office to
the other at proper time and receiving their reply and inform its properly to

the supervisor.
After spending some time in department and after understanding basic of
work responsibility was given me to closing the work at the end of day. My
supervisor guided me to fulfill this responsibility.
In purchase department I was responsible to put different documents
reports in their proper files and updating the record properly.

Accepts to these different types of miscellaneous responsibilities were assigned

to me during my internship program to enhance my skills and knowledge.
5.8.3 Influence of internship on future career plan

Internship program arranged for the student of business administration has also
purpose to grow the student as well he can properly work in the future their
career life. As student it is necessary for me to getting knowhow about the
modern perspective of business. I should also be aware to the opportunities for
job available in market. This internship program help me in this way that trough
internship doing practical work I have got knowledge about the practical work
which will help me in future to choose job field. Internship helps me to improve
my communication skill which will help me in future at the time of jobs interview.
Internship which I done is just like an experience its help me to adjust in
organization where I will first time go for job. Its help full me to deal with the
persons in my daily life and also will help in job. In the changing and competitive
organization culture every organization want to hire the person who have enough
knowledge, skill and practical experience to handle the different situation, So
internship help me to working in different conditions and handling situations.
5.8.4 Correlation between internship and class room knowledge

When I did my internship I observed that there are so many thing terminologies
which did not found in the class room knowledge. Practical field is not all but
some different from the class room knowledge. Class room knowledge is just
providing a base which prepare us to in an idolized situation but the actual
situation is different which I only learn trough experiences. As being a student of

management sciences which is not the actual science importance of internship

increase more to understand properly. it is quite right to say that internship is

necessary to conduct. Its truly help students to improve their weakness and clear
understanding about the concepts.

6.Conclusion Of the report

After explaining about the company, and detail description of my internship
program which I have completed in Ceco Tyre industry private limited Gujrat.
Now it is necessary to conclude my internship report so that reader can get better
understanding about the company where I did internship. Conclusion of the
report divided into three parts which are followings

Summary of the conclusion derive from internship experience

General Observation about the organization
SWOT analysis

6.1 Summary of the conclusion derived from internship

experience
In this era rivalry among the organizations are increasing day by day. Businesses
are facing different kinds of challenging. In This situation it is necessary to polish
the business student with the new trend in business. They should have more
knowledge and having experiences of practical work.
At the first day when I joined Ceco Tyre industry as internee my confidence level
was not good. But in two three days with the help of my supervisor and senior

internee I get my confidence level good than first day. There was very good

environment to learn. My supervisors and staff are well trained and have good
knowledge and skills about work. My supervisors and all staff help me to learn
from internship. They properly guided me and tell me about the work.
Internship which I did in Ceco Tyre industry helps me to boost my confidence
level. It helps me to enhance my knowledge and skills, specially its effect on my
communication skill. I learned how to work with seniors subordinate and with
peer group. This experience will give me confidence when I will go for job. I
observed that internship being a part of business student is a good thing. It is not
a time wasting activity as many people thinks.

6.2 General Observation about the organization

I did my internship in Ceco Tyre industry private limited Gujrat. I choose purchase
and accounts department for internship purpose. Ceco Tyre industry limited is a
good company. Company have good name in market and have good market
share. Ceco Tyre industry has strong culture and employees of company are well
trained and have knowledge about their work.
As I observed during my internship company management is quite good to
manage the all operations of the company they are trying to facilitate their
workers and employees. Technology which is being used in the industry is not
up-to-date as in modern business world, but the management of company
making efforts to adopt new technologies to achieve effectiveness and efficiency
in production. Employees working in organization have high level of loyalty, many

employees working in organization since many years. Organization is playing

good role in fulfilling social responsibility of the organization by performing active

part in social welfare.
In final I conclude that organizations environment; working condition is good to
work and a good opportunity to join organization for career because organization
provides growth opportunity to workers. Organization is also a best place for the
students

to

complete

their

internship

program

organization

staff

and

management fully guides the internees and provides a good environment to

learn.

6.3 SWOT Analysis

After completed my internship in Ceco Tyre industry I did SWOT analysis of the
company according to the information which I got trough observation and from
the employees of the organization including office staff and workers working in
production areas. SWOT analysis of the company shows the strength they have
and weaknesses. These both factors which come from the inside of the
organization and on the other side I analysis about the external factor threats
which are facing by company or company can face in future and opportunity
which or available to company. The factors which I found trough analysis is
followings
Strength

1. Organization has a strong culture which is strength for the organization.

2. Being the largest tyre making company in Pakistan, Company is enjoying

good will.

3. Ceco Tyre is old company due to this company have own retail shops in
all over the Pakistan which is a strong point for company as compared to
other competitive companies.
4. Company is enjoying customer loyalty.
5. Employees of the company are skilled and experienced which is strength
for company.
6. Ceco Tyre industry also has its warehouse which has large capacity to
store the raw material and finished goods.
7. Company is enjoying largest exporter of Pakistan in tyres industry.
Weaknesses

1. Many office staff of the company is old aged. They are not aware to the
modern knowledge.
2. There is communications Gap between the workers and management
which leads to creation of disputes.
3. Company have research and development department but it is not active
as it should be.
4. Technology for using of tyre and tubes production not up-to-date.
5. Many new educated staff is not well paid dew to which their motivation
level decrease and they are searching for new opportunities.
Opportunities

1. Company can increase their sale by making promotional activates in

foreign countries.
2. Company can increase market share opening their outlets of tyre and
tube in different cities.
3. Company has a large capital that is why they can increase their
production line.
Threats

1. Companies is facing tough competition by others tyre making companies.

2. Political instability in country is threat for company to expand business.

3. Government is applying high custom duty on imported goods which
increase the cost of raw material.
4. Interest rate is increasing rapidly which affect the expansion plan of the
company.
5. There is free entry of new companies in international markets which is
threat of competition also facing by company.
6. Government is charging high tax rate on sale which is decreasing profit
margin.

7 Recommendations
After doing SWOT analysis according to my observation I think Ceco Tyre
industry should take some steps to improve their business conditions. Following
are the recommendation which company should follow
1. Company should expand their business as backward integration it helps
the company to produce raw material for their need at low price as
compared to purchasing from outside suppliers. It also helps to improve

quality of raw material which ultimately affects the finished goods quality.

2. There should be training program arranged for workers and management

to enhance their knowledge and skills. Introduce them about the modern
perspective of business.
3. Companies should support their local supplier to produce material inside
the country which company compelled to import. by this company can

reduce cost of material and by saving custom duties and other charges.

Panel. (n.d.). Retrieved February 25, 2015, from http://www.cecotire.com/cgi-

sys/defaultwebpage.cgi
Wikipedia. (n.d.). Retrieved February 25, 2015, from https://www.wikipedia.org/

References