INTRODUCTION

INTRODUCTION
As per requirement to complete M.Com. Program at HAILEY COLLEGE OF COMMERCE (University of the Punjab Lahore), I completed my Internship Program at Pak Elektron Limited (PEL). This is for 6 weeks orientation prepared me to better understand the practicality of different tools of business administration. At the end of training program, it is required to submit an Internship report in university. The Internship report has been completed, which is a result of ones time taking efforts. I prepared this report as what I observed and what so ever I learnt here in PEL. I also got the help of companys published material. For instance, introductory part of this report is mostly taken from Company Profile and all raw financial figures from Annual Report of PEL.
My report covers a series of topical areas that I took them in analytical way. Major portion of this report has been devoted to Companys introduction and particularly to its management system. Efforts were to explore their hierarchies and identify the channels of workflow here in PEL. Then I discussed their major marketing strategies. Financial analysis is conducted to see companys financial position. Finally, I drawn conclusions and gave suggestions for the betterment of companys performance. At the end of report I added appendixes to cover those areas, which required for further details.

Board of Directors
Mr. M. Naseem Saigol Mr. M. Azam Saigol Mr. Shahid Sethi Mr. Haroon Ahmed Khan Mr. Mohibullah Usmani Mr. Homaeer Waheed Mr. Asif Jameel (NIT Nominee) (NBP Nominee U/S182 of the Ordinance) (Managing Director) (Chairman/Chief Executive)

Mr. Muhammad Khaleeq Janjua

Mr. Javed Mehmood Dar

(NBP Nominee U/S182 of the Ordinance)

Mr. Nausherwan Adil

(NBP Nominee U/S182 of the Ordinance)

Audit Committee
Mr. M. Azam Saigol Mr. Shahid Sethi Mr. Homaeer Waheed

Company Secretary
Sheikh Muhammad Shakeel

Chief Financial Officer

Syed Manzar Hassan ACA

Auditors
M/S Manzoor Hussain Mir & Co. Chartered Accountants

Bankers (in alphabetical order)

Faysal Bank Limited National Bank of Pakistan Union Bank Limited United Bank Limited

 Registered Office
06-Egerton Road Lahore Tel: 6306131-5 (5 Lines) Fax # 6368699

E-Mai: Shares@saigols.Com

Works:
Tel: 5811951-9 (7 Lines)

14-KM Ferozepur Road Lahore

A Brief Group Profile.

INTRODUCTION TO SAIGOL GROUP

In 1948, the Saigols migrated from Calcutta and initiated their business in Lyallpur (later named to as Faisalabad), the textile city of Pakistan, under the banner of Kohinoor Industries Limited.
The SAIGOL GROUP is one of the leading industrial groups in Pakistan. The Saigol Group belongs to the Saigol Family, which is an old business family and has contributed a lot towards Pakistans industrial development. Saigol Group remains a leading and forward-looking group and believes in continuous development and growth. The result is a global business activity monitored through various offices worldwide. They are serving nation in diversified business activities in the fields of:

Textiles Engineering Banking And Finance Fuel And Energy Trading Automobiles.

SAIGOL GROUP OF COMPANIES Textile

Azam Textile Mills Ltd. Saritow Spinning Mills Ltd.

06-Egerton Road, Lahore 06-Egerton Road, Lahore

Fuel & Energy

Kohinoor Power Co. Ltd. Kohinoor Energy Ltd.

Kohinoor Nagar, Faisalabad 06-Egerton Road, Lahore

Engineering

Pak Elektron Ltd.1

14km, Ferozepur Road, Lahore

PEL 2

21 km, ferozepur road Qasoor

Banking & Finance

Union Bank Ltd. Union Leasing Ltd.

06-Egerton Road, Lahore 07-Egerton Road, Lahore

Trading

Saritow Pakistan Ltd. Saigol Computer Ltd.

06-Egerton Road, Lahore 162-Shadman Colony, Lahore

Automobiles

Kohinoor Motor Works Ltd.

07-Egerton Road, Lahore

Kohinoor Textile Mills The Saigols set up the first major textile unit - The Kohinoor Textile Mills under the umbrella of Kohinoor Industries Limited. The Kohinoor Textile Mill has stateof-the-art quality control from raw material to finished product manufacturing. Its laboratory is top rated amongst the best laboratories in Pakistan for testing of textile raw materials, other inputs and yarn.

Initial Capacity:25,000 spindles Current Capacity: 71,648 spindles

Pak Elektron Limited (PEL)

In 1978, the Saigol Group of Companies purchased major shares of Pak Elektron Limited. At that juncture, the company was only manufacturing transformers and switchgears. With the Saigols in management, PEL started expanding its product range by entering into Air Conditioner manufacturing. The PEL Group comprises two divisions Appliances Division Power Division Appliances Division PELs Appliances Division is the flag carrier of the Saigol Group. This Division of PEL consists of home appliances manufacturing. In 1981, PEL window type air conditioners were introduced in technical collaboration with General Corporation of Japan. In 1986-87, the company started manufacturing of refrigerators in technical collaboration with M/s IAR-SILTAL of Italy. In 1987, PEL deep freezers were also introduced in technical collaboration with M/s Ariston of Italy. In 2006, the Company has started manufacturing of split type air conditioners of various capacities as the customer choice has shifted from window type to split type air conditioners. The product has received good response from the market, which encourages the company to multiply its production in the coming years. Today, PEL has become a household name. Its products are not only in great demand in the local market but the Company has also started exporting its appliances to foreign markets.

Power Division PEL Power Division is one of the major electrical equipment suppliers to WAPDA & KESC. Since 1956 the company manufactures transformers, energy meters, switchgears, kiosks, compact stations and shunt capacitor banks. PEL also has had the privilege of getting its equipment approved and certified from well-reputed international consultants such as:

Preece, Cardew and Rider, England Harza Engineering Company, USA Snam Progeti, Italy Societe Dumezm, France Miner & Miner International Inc. USA Ensa, France

Pak Elektron Limited alone has a turnover of over 180 million US Dollars.

Saritow Spinning Mills & Azam Textile Mills

In 1987, the Saritow Spinning Mills and Azam Textile Mills were established under the banner of Saigol Group of Companies. Saritow Spinning Mills is a spinning unit with 25,440 spindles capacity. Facilitated with the most modern and efficient Japanese and European machinery, its knitted yarn is renowned in the Far East and Europe for its fine quality. Azam Textile Mills is reputed for its carded and combed yarn, which is quite popular for premier knitting and weaving.

Kohinoor Power Company Limited

In 1991, the first power unit commissioned in Pakistan, in the Private sector, was Kohinoor Power Company Limited. Its present production capacity is 15 MW.

Kohinoor Energy Limited

1995, another power unit, Kohinoor Energy Limited, was established. Kohinoor Power Limited is a 120 MW power plant located on the outskirts of the city of Lahore. This project has an annual turnover of $80 million.

HISTORY PAK ELEKTRON LIMITED was set up in 1956 as a joint venture with one of the largest and renowned manufacturers of electrical equipment Messrs. AEG of West Germany for manufacturing Transformers, Switchgears and Electric Motors etc. The entire job of machinery requirements and layout of the factory building was planned and implemented by AEG who produced very well balanced facility for the design and manufacture of the above equipment and the commercial production was commenced on 22 November 1956. Up to 1962, when AEG finally phased out, the designing and manufacturing of all equipment was carried out jointly by AEG experts and PEL personnel. PEL staff, in the meantime, had received specialized training in USA and West Germany which enabled PEL to establish itself as the leading manufacturers of electrical equipment in the country with an excellent reputation for high quality and thus PEL came to be known as "THE QUALITY CONSCIOUS COMPANY". After conclusion of agreement with AEG, total share holding of AEG was purchased by the then sponsors - Malik Brothers. The production continued with AEG designs with much greater emphasis on the quality and reliability of the products which earned unique distinction of supplying electrical equipment to projects of paramount national importance like Mangla Dam and Tarbela Dam Projects. PEL equipment was approved by consultants of international repute including Preece Cardew & Rider (England), Binnie & Partners (England), Harza Engineering International (USA) and Miner & Miner International Inc. (USA). The majority shares were acquired from Malik Brothers by Saigol Group on 11 October 1978 and immediately on takeover the new management chalked out both long term and short term plans to put the company back on the path of progress. As a part of first phase of its BMR Programmer the new management injected the additional working capital of Rupees 8.98 million and Bridge Loan of Rupees 7.50 million (against the public issue of its shares) was provided by the ICP-led Consortium. As a part of long

term plans, the manufacturing of window type Air conditioners was taken up in 1981 and was immediately established for quality. The company launched the second phase of its BMR and expansion of the existing product line in the year 1987 and imported machinery for the manufacture of Refrigerators and Deep-freezers for a total value of Rupees 22.11 million. For the project National Bank of Pakistan - the leading bank of the company provided the financing. Like Air conditioners these products have also been well received by the local market which speaks highly of the confidence the consumer has developed in the quality products manufactured by the company. During the year 1990 the company had signed an agreement with Messrs HITACHI of Japan for the manufacture of Vacuum Circuit Breakers. The company has entered into an agreement with Pakistan Industrial Credit and Investment Corporation (PICIC) for a foreign currency as well as local currency loan of Rupees 25 million for the expansion, balancing, modernization and replacement of the existing plant. The machinery has come into operation in October 1991 and with the balancing, modernization and replacement of machinery, the production capacity of Refrigerator Section will reach a level of 252,450 cubic feet. The management of the Company decided to further expand its operation by establishing a plant for the manufacture of compressors for refrigerators and deep freezers. The technical know-how agreement has been signed with M/S NECCHI

Compressors, Italy for the assembly and progressive manufacturing of compressors for refrigerators and deep freezers. Pak Electrons Limited is known for its continuous research and development and transfer of technology from abroad. The Company commissioned its plant for the

manufacture of Electricity Meters in Pakistan in June 1994 with the technical collaboration and under license from M/S Asea Brown Boveri United State of America (A.B.B. USA). The plant consists of most modern and latest numerically controlled electronic machines with robotics technology and is capable to produce 960,000 single

phase electricity meters per annum in accordance with the international standards and specifications using the latest and most modern techniques available in the world. LOCATION AND FACILITIES The head office is in Gulberg Lahore and the production unit is situated at 14-k.m. Ferozepur Road, Lahore, and is spread over an area of 242 kanals and 15 Marlas of leasehold land in industrial area of Kot Lakhpat, Lahore, and presently the total covered area comes to 232,883 square feet. Factory is located on the main road where public transport is available round the clock helping in easy access to the labor and customers. TECHNICAL KNOW-HOW & FOREIGN COLLABORATION The company had obtained technical know-how from General Corporation (now Fuji General Limited) of Japan for the manufacture of its Air conditioners and thus was able to produce a unit which is now preferred by the consumers over all the other imported as well as locally manufactured units. The know-how contract was for five years ending in the year 1988. For the manufacture of Refrigerators, the know-how was obtained from SILTAL CASA SPA of Italy, who are one of the major manufacturers of "white-goods" in Italy and has assisted in the establishment of similar plants in many other countries. The technical know-how for Deep-freezers was obtained from ARISTON of Italy who is the largest manufacturers of "white-goods" in Italy. They have also helped lot of other countries in setting up similar projects for making "white goods". The company has obtained technical know-how from HITACHI for the manufacture of Vacuum Circuit Breakers.

THE COMPANYS CONSOLIDATIONS PAK ELEKTRON LIMITED The holding company. PEL APPLIANCES LIMITED (PEL) the subsidiary company.

PEL DAEWOO ELECTRONICS LIMITED The subsidiary and a joint venture with DAEWOO Electronics Company Limited, Korea.

Vision To excel in providing engineering goods and services through continuous improvements Mission To provide quality products and services to the complete satisfaction of our customers and maximize returns for all stakeholders through optimal use of resources. To focus on personal development of our Human Resources to meet future challenges To promote good governance, corporate values and a safe working environment with a strong sense of social responsibility.

COMPANYS OBJECTIVES
1. Th e co nt i nu ou s i mpr o ve me nt of al l pr od uc ts an d se rv ic es t hr ou g h to ta l in vo l ve me nt of e mp lo ye e s. 2. Th e de ve l op m en t an d st re n gt he ni ng of jo in t v en tu re s an d pa rt ne rs hi p s wi th e xt er na l an d i nt er na l cu st o mer s a nd s u pp li er s. 3. Pr ov i di ng i nn ov at iv e an d h ig he r q ua li t y p r od uc ts t o ac hi ev e to ta l cu st o mer sa ti sf ac ti on b y u n d er st an di n g th ei r re qu ir e me n ts a nd an ti ci pa ti ng t h ei r f ut ur e ex pe ct at i on s or n ee ds t hr o ug h: Mo ni t or in g An n ua l T ar ge ts f or q u al it y i mp r o ve me nt i n al l ar ea s an d f unc ti on of t he o rg an iz at io n. Va lu in g p eo p l e b y un de rs ta n di ng a nd dr aw in g u po n th ei r s tr en gt hs i .e . ab il it ie s an d k no wl ed ge a nd ma ke ef f or ts f or t he ir t ra i ni ng a nd de ve lo p me nt . 4. Wi th a de di ca te d te a m of p rof e s si on al s th e c o mpa n y i s s tr iv in g t o i mpr ov e t he q ua li t y of l if e in Pa ki st a n ho me s t hr ou g h r el ia bl e eq ui p me nt f or p o w er d is tr ib ut i on a nd h o me ap p li an ce s. 5. Th e gr o wt h in t he s iz e of t he or g an iz at io n de v el op s b et te r bu si n es s pr ac ti ce s an d b ui ld s up g re at er r es o ur ce s. 6. Th e as pi ra t io n t o ca pt ur e th e c o mp le te p ro d uc t f a mi l y of t he pr od uc t.