Final Report of Saqib Manzoor Malhi

Submitted To:

SIR Naeem Hayat

Submitted By:

Saqib Manzoor Malhi

Roll NO: 07108011

Company: Sonex Tiles

1

DEDICATION

I am privileged to dedicate this Internship report to my

loving parents & Prof. Naeem Hayat whose guidance and

consultancy I have been able to complete this challenging

task. He always seems to be fatigueless in spite of

tedious work and different and educational institute. His

unique methods of pouring knowledge into the minds of

students make him unforgettable He always inspires the

students for study.

2

ACKNOWLEDGMENT

All the praises are for Allah who is the master of

judgment day and who is Merciful, Beneficent to His

creation. I have the pears of my eyes to admire blessing

of the compassionate and omnipotent because of the

words are bound, knowledge is limited and time is short

to express His dignity. I offer my humblest thanks from

the core of my heart to the Holy Prophet Hazrat

Muhammad (PBUH) who is forever a model of guidance

and knowledge to humanity. I wish to express my deep

sense of gratitude to our worthy teacher Sir Naeem Hayat

for his co-operation, valuable guidance and supervision

under which this Internship has been completed. I am

also thankful to management of Sonex Tiles Limited for

their help, association, good wishes and encouragement,

which enable me to complete my Internship. I specially

acknowledge all the persons who helped and support us

in regard to provide information for this Internship

directly or indirectly.

Table of Content

3

ContentsDEDICATION................................................................................................................................................2

ACKNOWLEDGMENT...................................................................................................................................3

Table of Content..........................................................................................................................................4

EXECUTIVE SUMMARY.................................................................................................................................9

INTRODUCTION.........................................................................................................................................10

OVERVIEW OF THE ORGANIZATION..........................................................................................................11

Vision.....................................................................................................................................................11

Explanation............................................................................................................................................11

MISSON.................................................................................................................................................12

Explanation............................................................................................................................................12

CONTENTS OF MISSION STATEMENT.................................................................................................13

Objectives of organization.....................................................................................................................14

History of the organization....................................................................................................................15

Nature of the organization....................................................................................................................16

7 reasons why 100% people trust us.....................................................................................................17

Business Model......................................................................................................................................18

Strength, Beauty & Hygiene..............................................................................................................19

No Stain.............................................................................................................................................19

Business Volume....................................................................................................................................20

Employees of the organization..............................................................................................................21

Number of employees...........................................................................................................................21

Number of employees of Master Tiles & Ceramics...............................................................................22

Number of Employees of Head Office...................................................................................................22

WHY SONEX...........................................................................................................................................23

Product Lines.........................................................................................................................................24

Product Range of Master Ceramics & Tiles........................................................................................24

Product Range of Master Sanitary Fittings.........................................................................................26

Organizational Chart..................................................................................................................................27

Principal Bankers...................................................................................................................................28

CRITICAL ANALYSIS....................................................................................................................................29

FINANCIAL ANAYLAYSIS.............................................................................................................................30

4

Ratio analysis.........................................................................................................................................31

Profitability ratios..............................................................................................................................31

1. Gross Profit Ratio...............................................................................................................................31

Formula:....................................................................................................................................................31

2. Net Profit Ratio..................................................................................................................................32

3. Return on Investment........................................................................................................................33

Liquidity Ratios..................................................................................................................................34

1. Current Ratio:....................................................................................................................................34

2. Liquid Ratio:.......................................................................................................................................35

3. Capital Gearing Ratio:........................................................................................................................36

4. Fixed Assets Turn Over:.....................................................................................................................37

Interpretation............................................................................................................................................37

5. Total Assets Turn Over:......................................................................................................................38

Operating Ratio.................................................................................................................................39

1. Operating Ratio:................................................................................................................................39

2. Operating Profit Ratio........................................................................................................................40

Efficiency Ratios.................................................................................................................................41

...........................................................................................................................................................41

1. Inventory Turn Over:.........................................................................................................................41

Interpretation............................................................................................................................................41

2. Inventory Turnover Days:..................................................................................................................42

Leverage Ratio...................................................................................................................................43

1. Debt to Equity:...................................................................................................................................43

Debt / Equity ratio is improving due to increase in retained earnings. This ratio is satisfactory................43

2. Debt to Total Assets:..........................................................................................................................44

Interpretation............................................................................................................................................44

Horizontal Analysis................................................................................................................................45

Interpretation....................................................................................................................................48

Interpretation....................................................................................................................................50

Vertical Analysis.....................................................................................................................................51

Interpretation....................................................................................................................................53

Marketing Strategy....................................................................................................................................54

5

Direct delivery system...........................................................................................................................55

Indirect delivery system.........................................................................................................................55

Customers Rights Protection Policy.......................................................................................................55

Major Competitors of the organization.....................................................................................................56

Success of the products.........................................................................................................................57

OVERVIEW OF DEPARTMENTS...................................................................................................................58

FINANCE & ACCOUNTS DEPARTMENT...................................................................................................58

SALES OFFICE.....................................................................................................................................58

ACCOUNTS OFFICE.............................................................................................................................58

FUNCTIONS OF MANAGEMENT.............................................................................................................59

PLANNING..........................................................................................................................................59

ORGANIZING......................................................................................................................................59

LEADING............................................................................................................................................59

CONTROLLING...................................................................................................................................59

Production Department.........................................................................................................................60

PLASTIC SHOP....................................................................................................................................60

MUTHI SHOP......................................................................................................................................60

MOHRA SHOP....................................................................................................................................60

BRASS SHOP.......................................................................................................................................60

GRINDING SHOP................................................................................................................................60

FOUNDARY SHOP...............................................................................................................................61

TANKY SHOP......................................................................................................................................61

PATERN SHOP....................................................................................................................................61

FINISHING DEPARTMENT.......................................................................................................................61

GOLD SHOP........................................................................................................................................61

DIE SHOP............................................................................................................................................61

COLOUR SHOP...................................................................................................................................61

POLISH SHOP.....................................................................................................................................61

ETCHING SHOP..................................................................................................................................61

FINISHED STORE................................................................................................................................62

This is a section in which all of the parts which are polished, engraved and colored are stored in various shelves...................................................................................................................................62

6

ASSEMBLING DEPARTMENT..................................................................................................................62

FITTING SHOP....................................................................................................................................62

PACKING SHOP..................................................................................................................................62

MAINTENANCE DEPARTMENT...............................................................................................................62

FUNCTIONS OF MANAGEMENT:............................................................................................................63

PLANNING..........................................................................................................................................63

ORGANIZING......................................................................................................................................63

LEADING............................................................................................................................................63

CONTROLLING...................................................................................................................................63

ADMINISTRATION DEPARTMENT...........................................................................................................64

EXPORT OFFICE..................................................................................................................................64

CHECKING OFFICE..............................................................................................................................64

WAGES AND SALARY OFFICE.............................................................................................................64

RESEARCH AND DEVELOPMENT DEPARTMENT.....................................................................................65

FUNCTIONS OF ENGINEERING DEPARTMENT....................................................................................65

Management Skills................................................................................................................................65

1- Technical Skill................................................................................................................................65

2- Human Skills..................................................................................................................................65

3- Conceptual Skills............................................................................................................................65

CULTURE OF Sonex Tiles............................................................................................................................66

Dimensions of organization...................................................................................................................66

CULTURE OF FAISAL SANITARY..............................................................................................................67

Factor involved in the weak culture of Sonex Tiles............................................................................67

External Environment............................................................................................................................67

Components Affects on the environment of the Sonex Tiles.............................................................67

Relationship of the Sonex with Stakeholders........................................................................................69

DECISION MAKING.................................................................................................................................70

A set of 8 steps including...................................................................................................................70

Intuitional Decision Making...............................................................................................................70

1- SWOT ANALYSIS....................................................................................................................................71

STRENGTHS........................................................................................................................................71

WEAKNESSES.....................................................................................................................................71

7

OPPORTUNITIES.................................................................................................................................72

THREATS............................................................................................................................................72

2. PEST Analysis.........................................................................................................................................73

1- Political..........................................................................................................................................73

2- Economical....................................................................................................................................73

3- Socio-cultural.................................................................................................................................74

4- Technological.................................................................................................................................74

RESPONSIBILITY AS A STUDENT INTERN....................................................................................................75

Accomplishments..................................................................................................................................81

How internship experience impacts on my career................................................................................81

Problems...............................................................................................................................................82

Conclusions & recommendations for improvement..................................................................................82

8

EXECUTIVE SUMMARY

Internship is compulsory for “BSc (Hons)” to get practical experience in an organization and this

report is based on Internship in Sonex, which are located in GT road Kamokey which is

producing Tiles. My Internship is related to gain practical knowledge in the Sonex Tiles

industries. Sonex is a family owned organization all the decisions are made by top management

which is approved by Chief Executive Officers. The company is meeting with the needs of local

and foreign customers with highly skilled engineers and workforce. The employees in Sonex

Tiles are very much committed with their organization. The problems and their solution are also

discussed in the end. There are some suggestions and recommendation for the management of

Sonex Tiles Industries that how they can compete well with their competitions and enhance their

efficiency. Company should take mentioned actions because those are very much essential for

being competitor in the international market. Report also includes glossary in the end.

9

INTRODUCTION

Sonex is the trendsetting leader in sanitary fittings, wall and floor tiles and bathroom accessories

in Pakistan. The constant quest for perfection at Sonex spreads over more than 15 years. These

15 years have witnessed unprecedented growth in terms of brand equity, market leadership,

product innovation, human resource development, training and application of reliable

management systems. The combination has really worked.

Sonex today is not only the market leader in Pakistan but is also well positioned to match the

quality and service standards of the world leaders in its categories of business.

10

OVERVIEW OF THE ORGANIZATION

Vision

“We see our biggest challenge is not only developing an elite range of products, but also in

creating a general implementation of our ideas and experiences”.

Explanation

Vision is the long term target of the organization which are the basic rules and spirit of the

organization and these are the core values of the organization from which the organization can

not deviate during its life time.

11

MISSON

“Our company philosophy is Commitment to our Customer’s satisfaction. Sonex offers a

combination of beauty, technology and functionality at the highest level. A best organization,

commercial support, logistic and customer’s service are facts of our commitment to our

customers. Discover Sonex classical line and extensive range of Full Round, Quarter Round and

Single Lever Mixtures, Flush Tank and bath room Accessories. We define the requirement of a

new series as economical without simplistic content, individual creativity at an affordable

pricing”.

Explanation

A mission statement is for long period of time and it should cover all the aspects and goals which

an organization wants to achieve in long period like 15 to 50 years. But in the Mission statement

of Sonex there are a lot of contents which are missing.

12

CONTENTS OF MISSION STATEMENT

The following are he contends that a mission statement should have;

Customers.

Products or Services.

Markets.

Technology.

Concern for Survival, Growth and Profitability.

Philosophy.

Self-Concept.

Concern for Public Image.

Concern for Employees.

13

Objectives of organization

Sonex Industry is pursuing to their long term goals through identifying and considering short

term objectives. Their corporate objectives are as follows:

To study of capital structure planning and policy.

To study the working capital management of the organization.

To study the working environment.

To study the process by which an organization formulates its objectives, deploys

its resources and strives to attain such objectives.

To study the factors that determines the effective span of management.

To study the factors which influence on development of culture of an organization.

14

History of the organization

Sonex Industries was initially launched as company manufacturing and marketing high quality

sanitary fittings before more than 15 years. They started with providing full bathroom

accessories to their customers. After establishing itself as the pioneer and market leader in world

class sanitary fittings in a short span of just five years Sonex introduced the concept of matching

bathroom accessories in technical collaboration of England and Germany. Received by the

market with open arms, the trend of well integrated designs is constantly gaining popularity ever

since.

In 2002, at a time when the market was flooded with imported wall tiles as the only quality

option, as they called it, Sonex once again took the lead. Based on the world’s top of the line

Italian technology, Sonex launched its range of double fast fired wall tiles. Far superior in quality

and aesthetic values than imported ones, Sonex tiles took the market by storm and forced the

imported tiles out of this market.

Owing to their world class quality, Master tiles were such a tremendous hit in the market, to

meet the increasing demands, production capacities had to be tripled in the year 2007. In the

same year, Sonex added up world’s best plant and acquired best recipes for in house production

of tiles raw materials including frits and colors.

15

Nature of the organization

They are involved in technologically advanced products with a view to provide an ease and

betterment of the society. According to a research launched by them in 2002, a large gap was in

the demand and supply of quality flooring and facing materials in Pakistan. With the increasing

economic development in the country, the gap is widening further day by day. They take it as a

challenge and are all out to face it with commitment to make investments in terms of material

and human resources and fill this gap not only with quality but also with affordability.

16

7 reasons why 100% people trust us

Excellent finish with glittering gold & chrome

Creative designs with beautiful matching colors

Assurance of no leakage

Vast range of variety and colors

Use of automatic plant with latest machinery

Most economical price

Latest innovations

17

Business ModelSonex, Quality Management System (Q.M.S) is aimed, planned, developed and implemented to

bring excellence in their products and services. Sonex believes that quality adds value and Sonex

has determined to serve their valuable customers with highest quality products in order to

provide best value for their money. Continuous improvement in various management areas based

on the principles of good corporate governance, compliance with related legislation, regulations

and code of conduct are central to our quality policy.

Equipped with most sophisticated plant and machinery based on future technologies from the

world’s top six Italian companies, Sonex Granite production facility is so advance, unique and

innovative, it allows highest levels of manufacturing achievable today in the ceramic industry.

Ranging from gigantic continuous feeding mills to use of robotics for material handling, the

facility is based on futuristic state of the art systems. This facilitates production of a product so

sound technically and aesthetically, it is being experienced for the first time by the world.

It all beings with damp grinding of clays and other raw materials, the process are carried out in

the first of its kind Continuous Ball Mills. Raw material is fed into these mills at one end to get

slip from the other. The slip is separately treated in accordance with the end product requirement.

The process continues either to produce Le Porcelain range or Granite.

Quality of the end product at Sonex, However, is even better than these top world companies.

This is primarily because of our access to better quality raw materials here in Pakistan. Secondly,

Sonex lucky to install a combination of all the latest Italian technologies, being put to work

together for the first time anywhere in the world.

18

Strength, Beauty & Hygiene

Sonex Ceramic Granite Tiles are completely homogenized which means that the color, the

texture and the veins run throughout the thickness of the body, just like natural stone. Unlike

what is available in the market in the name of granite, the colors, designs and textures of ceramic

granite are not superficial. A gift of years of research and the latest in Italian technology, our

ceramic granite is so close to the natural granite stone that it is hard to make out the difference.

No StainCompletely chemical resistant and easy to clean due to extremely compact superior surface.

Scratch Resistance

Solid and compact body of the tiles provides them complete protection against scratches.

Zero % Absorption

Thanks to complete absence of pores throughout the tile thickness, zero percent absorption factor

promises ease of maintenance with maximum hygiene.

19

Business Volume

20

2010 2011

TOTAL ASSETS 2630590695 Rs. 2771444540 Rs.

TOTAL LIABILITIES 1631534000 1995403000

NET ASSETS 999056659 776041540

Employees of the organization

As far as my observation is concerned I feel that SONEX strongly believes that the interests of

the Organization and the employees are inseparable. At SONEX they try to create a ‘we’ culture

where there is mutual trust and respect for each other. They encourage ownership behavior so

that everyone feels responsible for the performance and reputation of the organization. They are

committed to develop and enhance each employee’s skills and capabilities through extensive in–

house and external training programs and job rotations. Through this system employees are well

motivated and provide good work.

Number of employees

I have worked in Sonex Head office. Three business lines are working under this head office.

21

Number of employees of Master Tiles & Ceramics

Sr.no Departments Employees

1 Abrasive Staff 2

2 Color Staff 7

3 Mono Staff 81

4 Tiles Staff 137

5 Grinding Worker 169

6 Grinding Staff 19

7 Mono Workers 307

8 Tiles Workers 517

9 Frit Workers 31

10 Abrasive Workers 36

TOTAL 1306

Number of Employees of Head OfficeTotal staff 153

22

WHY SONEX

As we have been in business since last 15 years, along the way we have realized that excellent in habit pays rich dividends. In manufacturing, we have the practice of rolling out the best products with excellent, raw material and trained personnel.

We are using the state of the art technology with the latest equipments, many of which are imported. We have the engineers to set and reset our production and quality personnel to oversee that technology gives us what we bought it for. We strive for excellence in manufacturing through use of this world-class technology.

This excellence will surely be beneficial to the channel of distribution to sell our products with a confidence that they are selling the best. While you sell our products, you will feel the difference of the manufacturing excellence we have seeped into our technology and manufacturing.

What you get from this are long lasting and high quality products. Products that will become a part of your life and will always be with you in every color of life.

The management of the company wishes to be present in every corner of the country. We wish to be available at every point in the landscape of India and the world. To make this vision a reality the Marketing department will be working to

1. Set up a wide network and tie up with most professional growth hungry distributors and capable dealers. 2. Pick strategic Retailers who can communicate the value of our products.3. Back up with brand building events so that customers recognize our brand.4. Advertise and media management for brand reinforcement to create a pull from the customers.5. Brand relation to woe the Interior design specialists.6. Establish a sales force that maintains the growth we are for seeing.

Yes.... Our strategy is different, but we are confident that this is the strategy for sustained growth and creating a strong brand.

Come... Enjoy the colors that have spread across the world, Like our brand that spreads like the azure blue sky. Like the turquoise blue water that covers 3/4th of the earth. Like the lush green fields of the world that feeds every living being.

23

Product Lines

Sonex industry has various product lines such as;

1. Sonex Ceramic & Tiles

2. Sonex Sanitary Fittings

Product Range of Master Ceramics & Tiles

Sonex has following wide range of variety.

FLOOR TILESFLOOR TILES Master has following wide range of variety.

1. Floor Tiles

12*12 Matt Glazed

12*12 Stone Granite

16*16 Matt Glazed

16*16 Granite Polished

24*24 Matt Glazed



2. Wall Tiles

8*8 Matt & Glossy

8*10 Glossy

8*12 Glossy & Semi matt


24

10*13 Glossy, Semi matt & matt



3. Extra Decorative Products


2.2*10 Glossy & Semi matt

2*8 Glossy

2.2*10 Glossy

2*10 Glossy

2*12 Glossy

1*1 Glossy

25

Product Range of Master Sanitary Fittings

Master Industry has following wide range of Sanitary Fittings

1. Bath Mixers

2. Wash Basin Mixers

3. Wall Sink Mixers

4. Showers, Shower rod, T-Arm and Wastes

5. Bottle Trap and Diverter

6. Bib Cocks and Stop Cocks

7. Complete Sets

8. Economy Compete sets

Royal Set

Aster Set

Eden Set

Esso Set

9. Economy Model

10. Complete bath sets

26

C E O

General Manager Finance

Manager Administration

Advertising Manager

Production Manager

Sales Manager

General Manager Sale & Marketing

General Manager ADMIN

Marketing Manager

I T MANAGER

Plant Manager

Area Sale Manager

Organizational Chart

27

BOARD OF DIRECTORS

Principal Bankers

Allied Bank

KASB Bank

National Bank Limited

Saudi Pak Commercial Bank

Askari Bank

Dubai Islamic Bank

28

CRITICAL ANALYSIS

Practical work is not as same as bookish knowledge. Bookish knowledge provides us an edge to

work better in practical environment. During my internship I learnt that “customer is always

right”. Main focus should be on observing customers. You definitely learn a lot from your

customers and can have a chance to improve your products and product qualities in accordance

with the needs of the customers. It is very crucial to face people having different perceptions and

to improve their confidence.

During the internship I felt that there is a bridge between educational and professional life. The

things that we have read, the observer has now implemented practically. We must show our

skills and tasks that we have performed during our educational duration. It is very helpful for us

and shows us the new ways to explore our valuable potentials.

29

FINANCIAL ANAYLAYSIS

Financial analysis is very good method to check the company performance and position and

probability and other by using different financial analysis methods. There are three financial

analysis methods. I did financial analysis for previous four years because Sonex provided me

only latest four years data in the shape of balance sheet and income statement.

1. RATIO ANALYSIS

2. HORIZONTAL ANALYSIS

3. VERTICAL ANALYSIS

30

Ratio analysis

A tool used by individuals to conduct a quantitative analysis of information in a

company's financial statements. Ratios are calculated from current year numbers and are

then compared to previous years, other companies, the industry, or even the economy to

judge the performance of the company. Ratio analysis is predominately used by

proponents of fundamental analysis.

Profitability ratios

1. Gross Profit Ratio

Formula:

Gross profit *100 / Sales

Years Gross Profit Sales Gross Profit Ratio

2008 67747469 911397870 7.433358276

2009 246238885 1068232571 23.0510557

2010 291113190 1158489421 25.12868782

2011 336309351 1578535476 21.30515

31

Interpretation

It shows the ability of the firm to meet its operating expenses. Normally higher the Gross Profit is

favorable for the organization. Gross profit in year 2008 is less as compared to and is higher in 2011.

Overall it is satisfactory.

2. Net Profit Ratio

Formula:

Net Profit *100 / Sales

Years Net Profit Sales Net Profit Ratio

2008 -132399376 911397870 -14.52706665

2009 36732122 1068232571 3.438588468

2010 83452916 1158489421 7.203597589

2011 108428559 1578535476 6.868933936

Interpretation

Gross profit and net profit both have the same declining trend. In 2008, the theoretical Net Profit is less

but after that there seems an increasing trend.

32

3. Return on Investment

Formula:

Net Profit *100 / Capital Employed

Years Net Profit Capital EmployedReturn on Investment

2008 -132399376 400000000 -33.099844

2009 36732122 400000000 9.1830305

2010 83452916 400000000 20.863229

2011 108428559 400000000 27.10713975

Interpretation

Return on Investment shows how much all the resources of organization are contributing towards profit.

This ratio was also less in2008 but went on increase in 2009, 2010 and 2011.

33

Liquidity Ratios

1. Current Ratio:

Formula:

Current Assets / Current Liabilities

YearsCurrent Assets

Current Liabilities Current Ratio

2008 492781012 865698811 0.569229166

2009 723792132 879549137 0.822912674

2010 771114543 865689624 0.890751745

2011 860626305 933395100 0.922038593

Interpretation

Current ratio was decreased in 2008. But after that it went in increasing upto2011. It shows that

the position of the company is satisfactory to meet its short term liabilities.

34

2. Liquid Ratio:

Formula:

Current Assets-inventory-prepaid / Current Liabilities

YearsCurrent Assets

Current Liabilities Inventory Prepaid

Liquidity Ratio

2008 492781012 865698811 288276070 334185 0.23584502

2009 723792132 879549137 390031351 243788 0.37919086

2010 771114543 865689624 529345222 0 0.27927945

2011 860626305 933395100 513984170 0 0.37137771

Interpretation

In 2011 and 2009 it is increased and decreased in 2008 and 2010. It means SonexIndustry can

meet its short term liabilities efficiently.

35

3. Capital Gearing Ratio:

Formula:

Long Term Debt / Equity + Long Term Debt

Years Long Term DebtEquity+Long Term Debt

Capital Gearing Ratio

2008 817430569 1285954219 0.635660708

2009 1018901325 1487424975 0.685010231

2010 1110502440 1579026090 0.703283148

2011 1075270250 1543793900 0.696511529

Interpretation

Capital gearing ratio is increased up till 2010 but in 2011 it is decreased. Overall the position of the

company is satisfactory.

36

4. Fixed Assets Turn Over:

Formula:

Sales / Fixed Assets

Years Sales Fixed Assets Fixed Assets Turnover

2008 911397870 1694131874 0.537973392

2009 1068232571 1623257996 0.658079353

2010 1158489421 1549895068 0.747463131

2011 1578535476 1896906283 0.832163133

Interpretation

Fixed assets turn over ratios shows how fixed assets of the company are contributing for generating sales.

An improving trend in this ratio shows better position of the company. The position of the company is

satisfactory and there is no threat to their survival.

37

5. Total Assets Turn Over:

Formula

Sales / Total Assets

Years Sales Total Assets Total Assets Turnover

2008 911397870 2228485097 0.408976426

2009 1068232571 2475191607 0.431575708

2010 1158489421 2630590695 0.440391363

2011 1578535476 2771444540 0.569571375

Interpretation:

Total assets turnover shows an increasing trend.

38

Operating Ratio

1. Operating Ratio:

Formula:

Cost of Goods Sold + Operating Expenses *100/ Net Sales

Years Net Sales

Cost of Goods Sold+Operating Expenses Operating Ratio

2008 911397870 907709928 99.59535323

2009 1068232571 886870366 83.02221727

2010 1158489421 928431457 80.14155677

2011 1578535476 1323252169 83.82783847

Interpretation:

This ratio is directly linked with the sale of the organization. This ratio was high in 2008 but decreased in

2009, 2010 and 2011.

39

2. Operating Profit Ratio

Formula:

Operating Profit *100/ Net Sales

Years Net Sales Operating Profit Operating Profit Ratio

2008 911397870 3687942 0.404646765

2009 1068232571 181362205 16.97778273

2010 1158489421 230057964 19.85844323

2011 1578535476 255283307 16.17216153

Interpretation:

Operating profit ratio depicts the operating profit after deducting selling and admin expenses. An

increasing trend in the operating profit ratio is favorable. In 2008 it was low. In 2011 it is higher and

satisfactory in 2009 and 2010

40

Efficiency Ratios

.

1. Inventory Turn Over:

Formula:

Cost of Sales / Average Inventory

Years Cost of Sales Average Inventory Inventory Turnover Ratio

2008 843650401 139768991.5 6.036034116

2009 821993686 156252832.5 5.260664225

2010 867376231 217017832 3.996797051

2011 1242226125 261561421.5 4.749271196

Interpretation

It shows that how efficiently an organization manages its inventory. This ratio is continuously

decreasing but in 2011 it is showing increasing trend.

41

2. Inventory Turnover Days:

Formula:

Average Inventory *360/ Cost of Goods Sold

Years Cost of Sales Average Inventory*360 Inventory Turnover Days

2008 843650401 50316836940 59.64181002

2009 821993686 56251019700 68.43242309

2010 867376231 78126419520 90.0721241

2011 1242226125 94162111740 75.80110404

Interpretation

The lesser the days the favorable will be the position. This ratio in year 2008 and 2009 is

increased and then increased in 2010 by 22 days but after that it is again showing decreasing

trend in 2011.

42

Leverage Ratio

1. Debt to Equity:

Formula:

Total Debt / Equity

Years Total Debt Equity Leverage Ratio

2008 1683129380 400000000 4.20782345

2009 1898450462 400000000 4.746126155

2010 1976192064 400000000 4.94048016

2011 2008665350 400000000 5.021663375

Interpretation:

Debt / Equity ratio is improving due to increase in retained earnings. This ratio is satisfactory.

43

2. Debt to Total Assets:

Formula:

Total Debt / Total Assets

Years Total Debt Total Assets Debt To Total Assets

2008 1683129380 2228485097 0.755279621

2009 1898450462 2475191607 0.766991314

2010 1976192064 2630590695 0.7512351

2011 2008665350 2771444540 0.724771981

Interpretation

This ratio depicts that how much the portion of debt is there as compared to the assets. This ratio shows

us that weather the organization has enough assets to cover its debt. This ratio was highest in 2009

44

Horizontal Analysis.

A procedure in fundamental analysis in which an analyst compares ratios or line items in a

company's financial statements over a certain period of time. The analyst will use his or her

discretion when choosing a particular timeline; however, the decision is often based on the

investing time horizon under consideration. A change of Rs. 1 million in sales is not as drastic as

a change of Rs. 1 million in net income, which is computed after deducting expenses.

Horizontal analyses show the comparison among the different years, assuming a year as base

year. By assuming a base year we make comparison of three or five year or on demand. Due to

this comparison it becomes easy to understand the yearly analyses of any firm or organization for

future planning.

45

SONEX TILES AND CERAMIC INDUSTRIES LIMITED BALA

NCESHEETAS ON DECEMBER 31

Rs.(000) Rs.(000)2008 2009 2010 2011

ASSETS

Fixed Capital Expenditure

Tangible Fixed Assets 1694131 1623257 1549895 1896906Capital Work in Progress _ 102950 291831 _Deferred Cost 13009 11150 10312 8333Long Term Loans & Advances 28563 14040 7437 5578

TOTAL Fixed Assets 1735703 1751397 1859475 1910817Current Assets

Store & Spares 95823 98502 70469 107006

Stock-in-Trade 288276 390031 529345 513984

Trade Debts 69896 98105 93734 170976

Advances, deposits & prepayments

33586 92100 36127 41406

Cash and Bank Balances 5198 45052 41437 41437

TOTAL CURRENT ASSETS 492779 723790 771112 874809

GRAND TOTAL 2228482 2475187 2630587 2785626

SONEX TILES LIMITED

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BALANCE SHEET

AS ON DECEMBER 31

Rs.(000) Rs.(000) Rs.(000) Rs.(000)

2008 2009 2010 2011

EQUITIES AND LIABILITIES

Share Capital & Reserve 500000 500000 500000 500000

Authorized Capital 400000 400000 400000 400000

50000000 ordinary share of Rs. 100/- each

Issued, Subscribed & Paid Up Capital 100000 100000 100000 100000

5000000 Shares of Rs. 100/- each

Un-appropriated Profit 45355 76741 154398 262779

Long Term Liabilities

Director Loan 246853 451449 648140 788033

Current Liabilities

Creditors, accrued & Other Liabilities 289792 305225 328996 444591

Total Current Liabilities 289792 305225 328996 444591

GRAND TOTAL 1082000 1333415 1631534 1995403

Interpretation Horizontal analysis shows increasing in balance sheets. I have using the year is base for

calculating the rate of growth of the company. In balance sheet Liabilities portion the increase in

47

un-appropriated profit after 2006 is increasing with rapid rate. Assets portion of balance sheet all

the factors increase. The horizontal analysis shows the endearment in balance sheets and as well

as rate of growth.

48

SONEX TILES LIMITED GUJRANWALA

TRADING AND PROFIT & LOSS ACCOUNT

AS ON DECEMBER 31

Rs.(000) Rs.(000) Rs.(000) Rs.(000)

2008 2009 2010 2011

Sales-net 911397 1068232 1158489 1578535

Cost of Sales 843650 821993 867376 1242226

Gross profit / (Loss) 67747 246238 291113 336309

OPERATING EXPENSES:

Administration Expenses 35794 38328 38017 50566

Selling Expenses 28265 26548 23037 30459

OPRATING PROFIT: 3688 181362 230059 255284

Other Income 2467 2683 963 6942

Total 6155 184045 231022 262226

Financial Charges 133805 145379 143176 145761

Workers Profit Participation Fund _ 1933 4392 5823

Workers Welfare Fund 2212

Net Profit before taxation (127650) 36733 83454 108430

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Taxation 4748 5346 5795 48

Net Profit after taxation (132399 31385 77657 108380

Accumulated profit b/f 277755 45355 76741 154398

Accumulated profit c/f to balance

sheet

45355 76741 154398 262779

InterpretationHorizontal analysis shows increment in balance sheets. I have using the year is base for

calculating the growth of the company. There is a continuous increase in accumulated profit with

rapid rate. Rate of increase in sale is low as cost of sale but gross profit is high except 2009 as

preceding years taking 2008 as base year. The horizontal analysis shows the endearment in

balance sheets and as well as rate of growth.

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Vertical Analysis

Vertical analysis is the procedure of preparing and presenting common size statements. Common

size statement is one that shows the items appearing on it in percentage form as well as in rupees

form.

Each item is stated as a percentage of some total of which that item is a part. Key financial

changes and trends can be highlighted by the use of common size statements

The resulting statement of percentage is called a common size statement. The current assets and current

liabilities are given only in total, because ratio analysis studies some of their components very carefully.

Vertical analysis is useful for comparing the importance of certain components in the operation of the

business. It is also useful for pointing out important changes in the components from one year to the next

then comparative common-size statement are presented.

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52

Sonex Tiles LIMITED GUJRANWALA

TRADING AND PROFIT & LOSS ACCOUNT

AS ON DECEMBER 31

Rs.(000) Rs.(000) Rs.(000) Rs.(000)

2008 2009 2010 2011

Sales-net 911397 1068232 1158489 1578535

Cost of Sales 843650 821993 867376 1242226

Gross profit / (Loss) 67747 246238 291113 336309

OPERATING EXPENSES:

Administration Expenses 35794 38328 38017 50566

Selling Expenses 28265 26548 23037 30459

OPRATING PROFIT: 3688 181362 230059 255284

Other Income 2467 2683 963 6942

Total 6155 184045 231022 262226

Financial Charges 133805 145379 143176 145761

Workers Profit Participation Fund _ 1933 4392 5823

Workers Welfare Fund 2212

Net Profit before taxation (127650) 36733 83454 108430

Taxation 4748 5346 5795 48

Net Profit after taxation (132399) 31385 77657 108380

Accumulated profit b/f 277755 45355 76741 154398

Accumulated profit c/f to balance

sheet

45355 76741 154398 262779

InterpretationI did vertical analysis of Income Statements of Sonex Tiles. The net sales are increasing trend.

The Gross profit also increasing from previous years. The operating profits also increasing as

well as the net profit increasing from previous years. In the vertical analysis all calculations

calculated on net sales.

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Marketing Strategy

SONEX has old marketing strategies. There are some problems in their strategies as it is not

been using the modern standards but through their strategies company making more and more

profit. Marketing strategy of master industry is based upon their strong dealership network.

Company has lot of advantages through this dealership network. Dealers finalized company new

product. Dealers helped in the upgrading of existing products.

Company enjoying a good repute in the mind of customers and has been emerged as a brand in

the mind of the customers so the customers also inquire about any new addition in the variety.

Other marketing strategies such as:

Know about the customer’s demand.

Packing of the product is also according to standard.

Providing better benefits to the dealers.

Well experienced marketing team.

Well oriented Supplies.

Good knowledge about market conditions well.

The SONEX operates through a well oriented network of a number of distributors/dealers. The

company has two types of delivery systems.

1. Direct delivery system

2. Indirect delivery system

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Direct delivery systemIn the direct delivery system direct sales to retailers.

Indirect delivery systemIn the indirect delivery system, Company using the distribution network.

Customers Rights Protection PolicyCustomers Rights Protection Policy (CRPP), it is basically a scheme started under the marketing

department. It is prevailing in the market since 2004. According to this scheme they made some

rules to sell their products assuring a win situation between the dealer and the customer. The

slogan of this policy was “assuring the dealers handsome profit without exploiting the

customer”.

They set the floor price of their product and they restricted their dealers not to sell the product

below that so that their profit can be ensured. And also setting the floor price so that no dealer

can sells the product above that price.

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Manufacturer Retailers Customers

Manufacturer Distributor Retailers Customers

Major Competitors of the organization

Sr. no Local International

1 Super Asia China

2 Master Spain

3 Style UAE

4 Emco Italy

5 Karam

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Success of the productsThere are a lot of successful products in the market

Granite Tile:

Sonex is producing high tech granite tiles at compatible prices. These tiles are available in

different colors and designs.

Wall Tiles:

Sonex is also producing good quality glazed tiles. The price range is also affordable and variety

is also available in these tiles.

Sanitary:

Sonex is also very efficient in sanitary. They are making high quality sanitary items in very

distinctive designs and at affordable and competitive prices.

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OVERVIEW OF DEPARTMENTS

FINANCE & ACCOUNTS DEPARTMENT

It is the main department in Sonex. They arrange the needs for money and regulate it in the organization.

This department maintains the flow of money and checks that where the cash is more needed and how

can utilize the cash resources in the better way. There are two sub departments which are working under

the FINANCE DEPARTMENT. These are;

1- Sales Office.

2- Account Office.

SALES OFFICE

This office maintains the flow of cash received by sales. It is the main dealing office in the regular

working time in Faisal Sanitary. Because the cash received and cash receivable due to sales is record by

the Sales Office.

ACCOUNTS OFFICEIt is very important office dealing under the main department of FINANCE. Its work is to maintain all types

of accounts in the organization which are due to the course of business dealings. All types of accounts

are maintained in this department.

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FUNCTIONS OF MANAGEMENT

PLANNINGManagement function that involves defining goals establishing strategies for achieving those goals and

developing plans to integrate and coordinate wok activities. For the purpose of generating more profit, the

Finance & Accounting department has to plan to control over irrelevant expenses is a compulsory and tire

ledger account may serve the tool for this purpose. This department has to plan to control cash flow,

depreciation methods, which method will be better for the preparation o financial statements.

ORGANIZINGManagement function that involved what task are to be done, who is to do them, how the task are to be

grouped and where the decision are to be made. They have to organize their accounts in such a way so

that the transaction occurred in one day recorded on the same day and prepared according to the

companies’ ordinance 1984.

LEADINGThe management function that involve motivating subordinates influencing individuals or teams as the

work selecting the most appropriate channel or dealing in any way with employee behavioral issues. They

motivate their employees to do their work regularly and according to the standards and free of any type of

error. They tried to communicate business Transactions and finance formations though selecting the

more effective channels. Mostly they communicate information through written and informal channels.

CONTROLLING

Management function that involves monitoring actual performance and comparing actual to standard and

taking actions if necessary. Chief financial officer and accounts manager monitor the account work to

ensure that they have accomplished their work according to the plan or not. If there is any deficiencies

and errors in the accounts work they have to remove these discrepancies, so that they can provide true

financial position of business to share holders and stakeholders.

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Production Department

In this department all the activities related to the production are carried. Production is the process through

which the raw material is converted into finished goods. In the Sonex Industries it is the spirit of the

organization. Because the Sonex is a manufacturing concern and is renowned due to its latest designs

and comforts which are provided by them to their customers. So this department plays a vital role in the

success of the organization and no doubt the other all departments are directly or indirectly related with

the Production department and aids it in maintain the production activities. It is a big Organization and this

Department is very important because of its nature. So there are a lot of other departments which are

working under it and are named as SHOPS.

PLASTIC SHOP In this shop the plastic which is used in different products is melted and then re-shaped according to

requirements.

MUTHI SHOPIn this shop Muthis are prepared and muthis mean the handles and movers which are used in bathroom

accessories like in taps. These are made with solid iron after melting.

MOHRA SHOPIt is a shop in which the small parts and nuts are manufactured which is helpful to tied up the two parts.

Mohra is used in assembling department when different parts are assembled with each other. It is also

useful in movement of lever inside the body of the product.

BRASS SHOPIn this shop brass is melted and different patterns of designs are made of it. These patterns are then

going through the different procedures and it make a final product.

GRINDING SHOPIn this shop they grind the parts to level them.

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FOUNDARY SHOPThey forge their styles in that shop.

TANKY SHOPIn this shop the Flush Tanks are manufactured. These are made with a thin plastic and there are a lot of

machines working in this shop and these are then gone in the finishing department to make it a final

product.

PATERN SHOPIn this shop models of designs are made in the form of a pattern and these are the base of different

products. This department is directly depending upon the decisions of engineering department.

FINISHING DEPARTMENT

After production the products are directly delivered into this department. They made the products neat

and clean and after some sort of procedures it becomes an acceptable one. We can say that in this

department the products are polished before giving them the shape for final product.

GOLD SHOP In this shop the golden polish is applied on products. That they become more attractive. There are also a

lot of machines which polished the parts in a golden color.

DIE SHOPIn this shop DIES are manufactured.

COLOUR SHOPIn this shop the products are colored in different ways. In this shop the most important thing is that these

are colored through various techniques. Like on fire, in the water and somewhere with hands.

POLISH SHOPIn this shop the parts are polished through different ways. The polish applied on the parts which are going

to be assembled gave them the original look for the final product.

ETCHING SHOPIn this shop different mono of the organization and the names are engraved on the product which shows

that these are the products made by the Faisal Industries.

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FINISHED STORE

This is a section in which all of the parts which are polished, engraved and colored are stored in various shelves.

ASSEMBLING DEPARTMENTIn this department different parts which are manufactured in production department and finished in

finishing department, now get the shape of a final product. Different parts are well tied with each other

that they shaped as a product.

The following are the shops which assembled the parts with each other under this department;

FITTING SHOP In this shop as the name signifies different parts are fitted with each other. In this department we can see

the original shape of the product. The parts after a lot of processing are get tied together that they made a

real product which is ready to purchase and use.

PACKING SHOPWhen the products take the final shape then these are packed in the special made bags and boxes. That

is why the product will reach to the final customer without any damage or defects.

MAINTENANCE DEPARTMENTDuring the production process there may arise any defect in the product or parts. The function of this

department is just to remove the defects of the parts, or reject them to enter the product in the processes

if its defect cannot be removed.

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FUNCTIONS OF MANAGEMENT:

PLANNING

Management function that involves defining goals establishing strategies for achieving those goals and

developing plans to integrate and coordinate wok activities. Material planning section deals with the

material schemes and planning recording the how much material for the month ahead. Usually the

material purchases decisions are also taken by this department.

ORGANIZING Management function that involved what task are to be done, who is to do them, how the task are to be

grouped and where the decision are to be made. In this section management of Sonex decide how many

units have to produce and they also decide through how many employees will complete the specific order.

LEADING The management function that involve motivating subordinates influencing individuals or teams as the

work selecting the most appropriate channel or dealing in any way with employee behavioral issues. After

organizing the resources and employees the management of production department coordinates the work

activities for the production process and also motivates employees for the completion of task.

CONTROLLING Management function that involves monitoring actual performance and comparing actual to standard and

taking actions if necessary. After the completion of other functions of management the management of

production department controls the overall activities of their department by monitoring the actual

production whether it is according to standard or not. They also try to eliminate errors in the production if

any.

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ADMINISTRATION DEPARTMENTThis is the department which controls and regulates the activities conducting at the work place. So it is the

head department which checks the work of all the employees. There are some other offices which are

working under the ADMIN office. The detail and functions performed by these sub offices are as under;

EXPORT OFFICESonex Industries also deal with other countries. They forward their goods to the INTERNATIONAL

market. They made their sales in MIDDLE EAST. So they made a separate EXPORT office in the admin

area which controls all the activities relating with exports. The officers in this department made contracts

with other countries and transfer the shipment to the other countries. And the amount received from these

shipments is also received by the officers of this department.

CHECKING OFFICE In this office all the department’s work are checked. This office regulates the work of all the departments.

It is the main OFFICE through which all the departments are checked and all the activities are controlled.

WAGES AND SALARY OFFICEThis department is control all the salaries and wages system given to the employees every month. If the

employees are in need of money then this office provide the financial help to them.

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RESEARCH AND DEVELOPMENT DEPARTMENTIn this department the research and development work is carried for betterment of the Sonex Industries. It

is a family owned organization so their research and development department is not so large. Their

working is just revolving around an ENGINEERING Department. It is controlled by engineering sector.

FUNCTIONS OF ENGINEERING DEPARTMENTThe following functions are performed by the engineering department;

1- Designs are made by them.

2- Proposal is given by this department to the higher authority.

3- If any defect is there in the product then it is the responsibility of this department to remove the

defects from it.

4- Suggestions of the customers and authority should be considered seriously by this department.

Management Skills

The following are the management skills, which are followed in any organization.

1- Technical SkillKnowledge and proficiency in a specialized field such as engineering, computers, accounting and

manufacturing etc. This skill is used by the management of Sonex engineering company.

2- Human Skills Ability to work well with other peoples. There is also lack of human skills in this company to work with

individuals and groups.

3- Conceptual Skills The ability to conceptualize about the abstract and complex situations. In this organization there is lack of

conceptual skills to face the difficult situations

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Sonex cultureOutcome oriented

Innovation and risk taking

People orientation

Attention to detail

Stability

CULTURE OF Sonex Tiles

Actions of management according to omnipotent view or symbolic view Symbolic view Faisal Co. thinks

that much of organization success or failure is due to external forces that are out of manger control those

external factors are

economy

customer

governmental policies

competitor

industry condition

technology

Dimensions of organization

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CULTURE OF FAISAL SANITARY

The culture of Sonex Tiles is weak because of key values are not deeply held and widely shared

And also have little influence on organizational members

Factor involved in the weak culture of Sonex TilesLow reward and salary system

No clear cultural values and beliefs

Disadvantages of weak culture:

Low commitment toward the organization

Slow the organization performance

Difficulties in routine work of organization

External Environment

The forces and institutions outside the organization that potentially can affect the organization.

Components Affects on the environment of the Sonex Tiles1- Specific Environment of Sonex Tiles

Forces that has a direct and immediate impact on the Sonex Organization, e.g. tax authorities,

suppliers, customers, competitors etc.

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Sonex Tiles

Tax Authorities

Competitors

SuppliersCustomers

2- General environment of Sonex Tiles

There are many socio-cultural, political, demographic, technological, economical and global

conditions that have impact on the Faisal Sanitary culture.

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Sonex Tiles

Union Employees Customers

GovernmentShare Holders

CompetitorsSuppliersCommunity

Relationship of the Sonex with Stakeholders

All the parties and constituencies in the organization’s external environment that are affected by the

organization’s decisions and actions. Normally the following group of people influence by the actions and

decisions Sonex Tiles.

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DECISION MAKING

A set of 8 steps including

1. Identifying of a problem

2. Identification of the Decision Criteria

3. Allocation of weights to Criteria

4. Development of Alternatives

5. Analysis of Alternatives

6. Selection of Alternatives

7. Implementation of Alternatives

8. Evaluation of Decision Effectiveness

After studying the management strategies Sonex I conclude that their decision making process is not

according to the management rules. Their mostly decision making depends upon personal

experience and judgments; therefore their decision making is not rational one.

Intuitional Decision Making

In Sonex mostly the process of decision making on the basis of personal experiences and

accumulated judgments, this is not a good practice for all kind of decisions.

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1- SWOT ANALYSISWhat is SWOT?

Strength of the company

Weakness f the company

Opportunity of the company

Threat of the company

STRENGTHSStrength means characteristics of the organization which are helpful in achieving the

objectives of the organization.

Skilled employees are working.

Handsome Salaries are paid which make employees satisfied.

Fully cooperative because of benefits they pay to their employees.

Latest technology is used to make every single part of their product.

WEAKNESSESCharacteristics of the organization which make the organization poor in achieving its

objects.

No proper training provided to their employees.

Most of their labor is on contract. For which they cannot get the output up to the requirement.

Wastage ratio is average rather than zero error.

Suppliers give the late delivery.

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OPPORTUNITIESExternal conditions that is helpful for the organization to achieving its objectives

Wide ranges of products make them unique.

Market growth helps them to enhance their sale.

Oldest company in the Gujranwala which gives them vital edge to their competitors.

Company is ISO certified which make them strong.

THREATSExternal conditions that is harmful for the organization to achieve its objectives.

Government policies changes time to time.

Quantity war rather than quality war which is the major threat to the organization.

High interest rate is paid by the organization on debts taken from banks.

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2. PEST AnalysisPEST Analysis is second analysis which we have done for Sonex and it includes the

followings:

1. Political

2. Economical

3. Socio-cultural

4. Technological factors.

1- Political

Political factors include government laws, rules and regulations under which a firm must

operate. But, in Pakistan, there is no stability of government and this also has effect on Sonex

Tiles. For example, government play role in different ways that are interest rates on debt,

import & export procedure and taxes. Interest rates on debt are increased from last year this

is negative impact on Sonex because they have to pay more interest to bank for their debt.

Political instability creates many effects on Faisal industry...

2- EconomicalEconomic factors affect the purchasing power of customers and the firm's cost of capital. If

we talk about inflation rates, it’s understood that if inflation exist it means there are high

prices of products and it will affect the purchasing power of customers for Sonex Tiles

products. Wage/price control list is another factor of economic forces. The Govt. sets the

price control list but according to Sonex industry, Govt play no role for the prices of

products.

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3- Socio-culturalThese factors affect customer needs and the size of potential markets. Life style of people

change day by day.Every day people are moving towards new trends. Now people also

want to see their bathrooms stylish and luxury. So with changes in lifestyle, Sonex

industry is getting more competition to create competitive products and getting more

demands from customers. They have a name in the market so they need to develop their

product according to the standard of customers. In Pakistan, growth rate of population is

high. As population increases it means no. of families and no. of family members are

increasing. Moreover, in our society, the trend of separate homes is also increasing and

it’s a positive impact on Sonex industry because the demand for sanitary products will

increase. Consumer activism is also increasing day to day. Customers are becoming

aware with the product’s quality, price, demand, and trend. But if customer is well aware

about products, in this case Sonex industry needs to be more efficient to satisfy their

customers through quality and cost effective products.

4- TechnologicalToday we live in a time of continuous technological change. Technologies reduce the

product cost due to advantage of economies of scale. Technological environment changes

rapidly. So this creates the need for new designs in products because people demand

something new every time Sonex developed products which were not common few years

ago. They are competing with their competitors and providing quality wise products in

new designs.

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RESPONSIBILITY AS A STUDENT INTERN

Activities UndertakenDate Deptt. Activities

30/07/2012

SaleFirstly Mr. Asif introduced me with all the staff and briefly told me about their company and their Products. I also examine how they work.

31/07/2012

Sale2nd day my Site Supervisor told me how they maintain record of sale department and he saw me whole month sale record. I study sale record whole day to learn how they record the entries in sale books.

1/08/2012 SaleThis day I study how much type of Products Company make. They make two types of Tiles. (1) Floor Tiles (2) Wall Tiles. They make two types of floor tile (1) Polish Tiles (2) Matt Tiles.

2/08/2012 Sale

This day they told me about their Product Quality. Three types of Quality they have for each Product

(1) Prime Quality ( High Quality)(2) Standard Quality ( Medium Quality)(3) Commercial Quality ( Low Quality)

3/08/2012 Weakly Holiday

4/08/2012 Sale

I study the size of the tiles. Two standard sizes of floor tiles that are(1) 16 x16 mm(2) 24x24 mm

They can customize it if dealer give very large order otherwise they make standard size. Only 1 standard size of wall tile 10 x 13.

5/08/2012Display Center

I visit display center of sonex tiles where they kept samples of all tiles. They told me about quality and difference of all tiles. They also told me about the codes of all tiles. They give a special code of same type of tiles.

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6/08/2012 SaleI study DPR (Daily Production Report) that day. Factory Supervisor daily sends DPR to the sale department. In DPR there is all detail of production of that day. They also give me instructions about DPR.

7/08/2012 SaleI study their Inventory book that day. Where they maintain all the record of their stock they had.

8/08/2012 Sale

I study how they take orders from the customers. They made productions according to the orders from customers. They don’t make extra stock. Some customers directly call to sale office but mostly customers contact their Marketing Managers.

9/08/2012 SaleMarketing Managers told about their orders to sale Department than they write order according to their inventory Book.

10/08/2012

Weakly Holiday

11/08/2012

Sale

That day I study in which cities they sell their product. They sell their products all cities of Punjab and Sindh. They Have marketing Managers in all cities of Punjab and Sindh. They don’t sale their product in Baluchistan and Khaiber Pakhton khawa on credit.

12/08/2012

SaleI study their all type of vouchers that day and I also study how they fill that vouchers.

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13/08/2012

Inventory Department

On the first day in Inventory Department Manager himself introduced all the inventory deptt. And staff of inventory department. I was shown all the chemical rooms and labs containing chemical dealing equipment. Then I was shown the raw material which was being converted into finished goods. Then I was shown dumping of finished goods which was managed and organized in daily bases.

14/08/2012

14th August Holiday

15/08/2012


It was my duty to give opening values of stock before the Manager come to office. I had to submit closing values to the C E O before he goes from office. All the reports are compared physically with the original inventories.

16/08/2012

Accounts department

On that day I submitted opening stock report of raw material and finished goods. I was introduced to the accounts of the company. All the accounts of incoming and out flow of cash and raw material. Few accounts of company were dealt much efficiently and were given much priority. I arranged all the priority customers in a separate account and highly rated them.

17/08/2012

Weakly Holiday

18/08/2012


I again move to stock management. New raw material was added to the inventory. A new delivery of finished goods was dispatched on the same day. I was told how to make delivery voucher. Stock was rearranged after delivery.

19/08/2012


On that day rearranged all the stocks of raw material and finished goods. I checked out all the reports of stocks and then compared them physically. Few errors were in the raw material which was resolved after comparing it with production manger’s report.

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20/8/2012 Eid Holiday



23/8/2012Production Department

Another new department for me in the same week. I assisted in making of products of company. I was a day full of enjoyment and with lots of experience regarding tiles industry. Whole day I saw how they convert their raw material into final Product. Production Manager give me lot of detail of their production.

24/8/2012 Friday Holiday

25/8/2012Sale Department

After Friday Holiday I again worked in sale department. It was good day for me because I gain lot of knowledge that day. I entered DPR data into their inventory book. I was doing this first time so I took extra time for doing that but it was a good experience.

26/8/2012Sale Department

It was also a very knowledgeable day for me. That day I took orders from customers at mobiles and personally. After wrote detail of orders I made vouchers of that orders. It was a very good experience for me.

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27/08/2012

Sale

I study how they take orders from the customers. They made productions according to the orders from customers. They don’t make extra stock. Some customers directly call to sale office but mostly customers contact their Marketing Managers.

28/08/2012

Account

On that day I submitted opening stock report of raw material and finished goods. I was introduced to the accounts of the company. All the accounts of incoming and out flow of cash and raw material. Few accounts of company were dealt much efficiently and were given much priority. I arranged all the priority customers in a separate account and highly rated them.

29/08/2012

Inventory

On that day rearranged all the stocks of raw material and finished goods. I checked out all the reports of stocks and then compared them physically. Few errors were in the raw material which was resolved after comparing it with production manger’s report.

30/08/2012

Account

That day I firstly learned how to make Sale Tax return. He told me how to make Sale Tax return. Then I made sale tax return. In sale Tax return we less Input from Out Put Tax. Then I submitted to the chief Accountant of the company. He checked all returns.

31/08/2012

Weakly Holiday

01/09/2012

Inventory

I again move to stock management. New raw material was added to the inventory. A new delivery of finished goods was dispatched on the same day. I was told how to make delivery voucher. Stock was rearranged after delivery. That was very busy day.

02/09/2012

Reception

It was a new experience with me. That day my duty is on Reception. It was very interesting for me. That day I picked lot of call of dealers, customer, distributors and managers and transfer them to CEO office phone. I learned very much that day how to deal people.

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3/09/2012 Pay Roll

That day I meet with them and asked about their major duties and other duties related to their department and the duties associated with their other departments. He told me about their major duties that they are controlling all the employees wages , registering the employees and entering the employees data, issuing the short time employee card to new comers , all the data related to employees work ( working hours, leave, over time ) and pinning all the order forms receiving from the DCO ( delivery Chillan officer ). That I got some work from the uncharged of admin department. I filled all duty order forms manually.

4/09/2012 Pay Roll

This was the day to print out all the Cards (short term employee’s card). So the head of this department asked me to write down the names of those employees whose card are ready to print out. This day we got a big problem from an employee. He complained that he didn’t get his salary from last month. Our system was showing that he has collected his last moth salary. After spending much time we find that there was another employee with the same name who worked only for 15 days but got the salary of full month. But actually this was the salary of that employee who was complaining us. That was our department mistake. We resolved problem and paid his full salary.

5/09/2012 Pay Roll

Today he asked me to un-pin all the employees ID cards photo copy and 2 pictures. I did it and he give me new task to write all the information on the Employees registered form and attach a ID card and 2 pictures on the form 1 picture on the real form and 1 picture on the copied form that was created by the carbon paper .

6/09/2012 Pay Roll

That day I made salaries of employees according to their attendance. I also insert that how many day they worked over time. That was very busy day for me because it is very difficult to made that and it was very time consuming.

7/09/2012 Weakly Holiday

8/09/2012 Pay Roll

Today he asked me to collect the employee’s attendance register and write down the all employees’ attendance and absent in number form. And after he asked me that I will speak the related employee information and he will add all the information in the computer.

9/09/2012 Pay RollIt was my last day of internship. I did not do much work that day. I thanked all who contribute me to learn all work in factory. That day i write down the attendance of employees only.

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AccomplishmentsMy attainments from this internship program me to be confident and practical oriented feelings

are achieved. During my internship at Sonex Tiles I got the experience of being interacted with

the employees. I have achieved the real job exposure and learn how to accomplish the needs of

your job at the platform of tough competition. This internship program gave me an opportunity

to relate my bookish knowledge with the practical and real world implications. Through this

internship I definitely polished my communication, analytical and interpersonal skills. I also got

the exposure that how to deal with people while deciding your business activities.

How internship experience impacts on my careerThe Internship was an opportunity for me to observe a small practical field i.e. Sonex Tiles.

Though it was a little time activity but it will always provide the ladder to my success in future

endeavors. After obtaining the final Transcript / Degree, the very first interviewer you will see,

asks the questions from this practical experience you will have which is your Internship and if

you get through from this first obstacle means that the way of success is started. It will be a

milestone for me after the completion of my degree as the first question is always asked about

your internship during your first interview.

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Problems

Electricity shortage

Economic de-establishment

China industry products

Increase in Tax rate

Employees and peers conflicts

Unemployed labor

Bradri system

Centralized decision making

Conclusions & recommendations for improvement

Sonex Industry has superior look on his product as competitor in the market. Sonex industry has

good worth in the markets. During my internship I had learn very much in practical accounting

operations as well as sales and other operations.

Sonex industry has providing well quality products. Structure of Sonex industry has well

oriented and matched with international standard. Sonex industry has well preferable

departments. Sonex industry has all departments like finance department, marketing department,

accounts department, admin department, production department and human resources

department.

Ratio analysis is very important to understand the financial position of the any organization. In

ratio analysis I explain from different angles the soundness of Sonex Industry's financial

position. Sonex Industry has strong financial position. This strong position may be due to better

management or group of industry. What so ever the reason is one thing is clear that Sonex

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Industry has a strong position in market over their competitor and also a name of better quality

producing in the fields of sanitary product?

Strategies of marketing department are successful in market. But finance department have some

improvement. During my internship I faced some problems in finance department.

Overall Sonex Industry has bright future. Sonex has big market share locally as well as

internationally.

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Final Report of Saqib Manzoor Malhi

Documents

debt equity ratio

current ratio

liquid ratio

capital gearing ratio

final internship report

total assets

master of judgment day

worthy teacher sir naeem