Report on General Tyre

CONTENTS PAGE #ACKNOWLEDGEMENT 2

EXECUTIVE SUMMARY 3

INTRODUCTION 4

Vision: 4

Mission 4

Swot Analysis 5

Quality Policy 6

Employee Incentive Programs 6

Dealers 7

Products 8

CUSTOMERS 9

DEPARTMENTS & MANUFACTURING 10

TYPES OF LABORS 12

Profit and Loss Account 13

Balance Sheet 14

Expenses 16

Cash Flow Statement 17

Cost Of Goods Manufactured Statement 18

Cost Of Goods Sold Statement 19

Cost of Raw Material per Tyre

kinds of raw materials used in tyre

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ACKNOWLEDGEMENT

We are highly grateful to Almighty ALLAH who gave us power to complete this report. It would obviously be injustice not to mention the name of people involved to make this report possible and helped their most to make us understand the overall operation of the company as of their best knowledge.

We special thanks to Aqil Muhammad Khan, (Technical Executive) & Ishtiaq Saab (President) of workers union for them to help and support to us, we are very thankful for his co-operation and we also want to thanks some other employees of this branch for their co-operation.

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EXECUTIVE SUMMARY:

Our term report is all about the IT Solutions. We selected GENERAL TYRE & RUBBER COMPANY OF PAKISTAN LIMITED our term report. It is one of the leading company of Pakistan. The head office is located in Karachi with main branches in Islamabad and Lahore. Sales outlets and representative offices are located in all the major cities and towns of Pakistan

As far as our topic is concerned, we describe the Vision/Mission Statement, SWOT Analysis Dealers of GTR, Quality Policy, Market Segment of GTR, and Customer & Suppliers of GTR, Balance Sheet, Types of Labors, and Departments of the Company.

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INTRODUCTION:

The General Tyre and Rubber Company of Pakistan Limited (Gentipak) is Pakistan‘s premier industry. It was established in 1963 by General Tire USA and has been in production since 1964.

Gentipak has a Technical Services Agreement (TSA) with CONTINENTAL AG (Germany’s largest tyre manufacturer) which enables it to produce tyres of “GENERAL” brand and provides the latest technology for production of tyres based on Continental’s, R&D.

The Plant and the Offices are located in suburb of Karachi. Initial production capacity was only 120,000 tyres per annum but is now around 2,000,000 tyres per annum. Our plant is constantly upgraded and is equipped with the most modern technology in tyre manufacturing.

Vision:

To be the leader in tyre technology by building the Company’s image through quality improvement, competitive prices, and customers’ satisfaction and meeting social obligations.

Mission:

To endeavor to be the market leader by enhancing market share, consistently improving efficiency and the quality of our products. To offer quality products and after sale services to our customers at competitive prices. To improve performance in all operating areas, improve profitability thereby ensuring growth for the company and increasing return to the stakeholders. To create a conducive working environment leading to enhanced productivity, job satisfaction and personal development of our employees. To enhance productivity and continue discharging its obligation to society and environment by contributing to social welfare and adopting environmental friendly practices and processes to serve the society.

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Swot Analysis

Strengths:

Efficient Distribution networks through out the country

Quality Products

Environment Friendly

Skilled labor

Educated staff

Large number of offerings

Aggressive Marketing

Good background of the company

Solid Financial position

Strong supply chain network

Weakness:

Low advertising.The price of General TyreProvides poor working conditions

Opportunities:

International market

Advertising through television

New line of tyres

Threats:Competition The political conditions of the country Financial crisis may lead to job shortages in Pakistan

Quality Policy:

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They are a company of dedicated people who enjoy working as a team and with our customers in an enterprise committed to quality.

They will continually strive to bring improvements in our products, services & quality management system to meet or exceed our customer’s needs and expectations.

They will work within the framework of legal and regulatory requirements.

Employee Incentive Programs

Separate group and individual incentivesAwardEmployee Engagement:PTO, paid holidays and relaxation Spot AwardTuition reimbursement and learning opportunityRecognitionRecognition Program

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Dealers of GTR in Pakistan: Karachi

Hyderabad

Sakhar

Lahore

Faisalabad

Multan

Rawalpindi

Peshawar

Products Offering by GTR:

PASSENGER CAR TYRE LIGHT TRUCK TYRE

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BUS TYRE RICKSHAW TYRE

TRACTOR TYRE

CUSTOMERS OF GTR:

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GHANDHARA NISSAN LTD.

HONDA ATLAS CARS (PVT) LTD.

INDUS MOTOR COMPANY LTD.

MILLAT TRACTORS LTD.

PAK SUZUKI MOTOR CO.LTD.

NEXUS AUTOMOTIVE (PVT) LTD.

SIND ENGINEERING (PVT.) LTD.

DEPARTMENTS & MANUFACTURING OF TYRE:

MIXING DEPARTMENT:It is the first process of manufacturing of a tyre where the Raw Material (Rubber) is mix to foam a shape of solid rubber and it is heated upto 100 to 145 Co. For that they have four Machines & 150

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labors which are working day & night in three shifts. This process is very harmful for the workers because of high temperature.

SINGLE STUDUR: In this dept layloon and rubber is mix together to make a palley of it for this they have only six labors in three shifts every two man is working in one shift. The all work is going through the Machinery. For this they have four Machines & 12 labors. Its approximate took a time of 40 to 50 minutes to make a one palley of different size according to the size of plate.

DOUBLE STUDUR:Making of trade of tyre. Gave a heat to Palley approximate 60 to 70 Co .This dept have 06 Machines & needs 36 to 44 labors in three shifts.

BITE:Mix the cable and the rubber which is located in the ends of tyres through the Machine. 4 Machines are available & 70 labors are working in three shifts.

BAND DEPT:Making of a band only need 30 labors for three shifts 10 labors for each shift & 02 Machines.

PALLEY DEPT: To make a palley. 26 labors are working in this dept in three shifts with 3 Machines.

STOCK PREB: In this radial palley & cable palley which makes in dept 03 & 04 join together. This all process took place through the heavy Machinery & 06 labors in three shifts 02 for each shift.TYRE BUILDING:Making in the shape of tyre but it is not the foam of a formal tyre it is in the shape of tube which needs the time & also some other process to be a formal tyre. For this they have 05 Machines & 20 labors in three shifts.

RADIAL DEPT: Making of a tubeless tyre in this dept. 06 Machine & 135 labors working in three shifts.

CORING DEPT:This is the last step of manufacturing of a tyre and it is also more complicated from dept 1. In this they have to give the high temperature for making a tyre in to different time periods. For Tractor, Truck & Bus tyres they gave upto 180 to 200 Co and it takes 75 minutes of making a 1 tyre. For this they need a blander which have a time duration after this it will expire and cannot make During this time period no labor can stand with the Machine due to high temperature & storm this all process are also took place by Machines 200 labors are working with these Machines.

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Making a tyre of a Car & Rickshaw they gave 140 to 150 Co temperature & it take a time of approximately 40 to 48 minutes.After this in the same dept tyre go through that Machine if any tyre have high mixture of rubber it can detect and remove it.

TUBE BUILDING:After manufacturing of tyre in this dept they make tube of tyres and put the nozzle in the tubes.

STORE DEPOT: After the manufacturing of tyres they have to store the tyres because their customers’ needs time to pick up their shipments. For that dept they have 40 workers & five four man’s.

QUALITY CONTROL DEPT: For quality control they have well educated & experience engineers and workers who control the quality of the products. This dept have a high risk. They have 25 labors for three shifts.

SECURITY DEPT:This dept has a to check the security of the company products. For that they have more than 50 Guards for three shifts.

TYPES OF LABORS:

DIRECT LABORS:

They have more than 475 direct labors which are working in all departments of a company. They have medical all ounce upto 125000 to 210000 for a year. They also treated with bonus & extra

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payment according to their jobs. Company also gave the transportation to them. They are working in three shifts.

INDIRECT LABORS:

They have more than 520 indirect labors working in the company. They are also working in three shifts. They have a low medical all ounces from 75000 to 105000. They have a bonus on special occasions like Eid & Ramadan.

GENARL LABORS:

They are more than 380 & they have a control on direct & indirect labors. They are treated with every facility of company which is providing able. They work without any shifts.

Profit and Loss AccountFor the Year Ended December 31, 2012

2012 2011 (Rupees in ‘000)

Sales – net 34,183,847 28,235,393Cost of goods sold (25,231,532) (20,285,142)

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Gross profit 8,952,315 7,950,251

Distribution and selling expenses (3,890,352) (3,538,284)

Administration expenses (956,816) (900,822)

Operating profit 4,105,147 3,511,145

Finance cost (557,325) (584,434)Other operating expenses (1,382,138) (442,914)

(1,939,463) (1,027,348)

Other operating income 61,800 65,959

Profit before taxation 2,227,484 2,549,756

Taxation (674,590) (744,544)

Profit after taxation 1,552,894 1,805,212

Earnings per share – basic and diluted (Rupees) 34.24 39.81

Balance SheetAs at December 31, 2012

2012 2011

(Rupees in ‘000)

ASSETSTangible fixed assetsProperty, plant and equipment 9,464,373 9,074,428

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Capital work–in–progress 1,382,401 971,183

10,846,774 10,045,611

Intangible assets 49,744 92,382

Long term loans and advances 98,544 80,670

Long term security deposits 5,036 6,088

Current assets

Stores and spares 804,647 436,573Stock in trade 2,488,573 2,393,306Trade debts 456,813 344,053Current portion of long term loans and advances 26,615 21,279Advances, deposits, prepayments and other receivables 1,488,103 2,022,387Cash and bank balances 419,327 406,225

5,684,078 5,623,823

Total Assets 16,684,176 15,848,574

2012 2011 (Rupees in ‘000)

EQUITY AND LIABILITIESShare Capital and ReservesAuthorized capital75,000,000 (2007: 75,000,000) ordinary shares of Rs. 10 each 750,000 750,000

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Issued, subscribed and paid up capital 453,496 453,496Share premium 249,527 249,527General reserve 280,000 280,000Accumulated profit 3,405,824 3,128,682

4,388,847 4,111,705Non current liabilities

Long term finances 5,139,875 4,028,700Deferred taxation 1,319,333 1,371,675ReTyrement benefits 351,968 238,370Liabilities against assets subject to finance lease 177,582 119,602

6,988,758 5,758,347

Current liabilities

Current portion of:Liabilities against assets subject to finance lease 54,042 29,863

Short term borrowings – secured 300,000 1,035,000Short term running finance under mark–up arrangements – secured 1,924,287 1,637,799Customer security deposits – interest free 127,884 124,572Trade and other payables 2,798,185 3,062,027Interest and mark–up accrued 102,173 89,261

5,306,571 5,978,522CONTINGENCIES AND COMMITMENTS

Total Equity and Liabilities 16,684,176 15,848,574

2012 2011 (Rupees in ‘000)

Trade and other payables

Trade creditors

Related parties - associated companies 608,126 188,482Others 406,220 728,897

1,014,346 917,379Accrued liabilities

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Related parties - associated companies 181,569 146,883Others 1,198,881 1,599,758

1,380,450 1,746,641Excise duty payable 14,044 12,012Advances from customers 88,069 61,474Workers’ profit participation fund 9,250 96,156Workers’ welfare fund 149,473 104,015Royalty and technical assistance fee payable to holding company 89,566 59,008Unclaimed dividend 2,997 2,777Withholding tax payable 24,872 8,152Others 25,118 54,413

2,798,185 3,062,027

Salaries, wages and amenities include the

following in respect of retirement and

other benefits:

Interest cost for the year 34,929 35,607

Current service cost 50,683 28,626

Expected return on plan assets (25,881) (18,230)Contribution made by the employees – –

59,731 46,003

Cash Flow Statement

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For the Year Ended December 31, 2012

2012 2011

(Rupees in ‘000)

Cash flow from operating activities

Cash generated from operations 4,224,959 4,534,010

Decrease in long term security deposits 1,052 –

(Increase) in long term loans and advances (23,210) (27,170)

ReTyrement benefits paid (89,867) (74,690)

Finance cost paid (544,413) (593,722)

Taxes paid (41,697) (234,803)

Net cash generated from operating activities 3,526,824 3,603,625

Cash flow from investing activities

Fixed capital expenditure (1,871,296) (2,909,391)Sale proceeds of property, plant and equipment 74,233 67,321

Net cash used in investing activities (1,797,063) (2,842,070)

Cash flow from financing activities

Repayment of long term finances – (300,000)Net movement in short term borrowings – secured (735,000) 335,000Payment of finance lease liabilities (66,383) (18,333)Dividend paid (1,201,764) (226,748)

Net cash (used in ) financing activities (2,003,147) (210,081)

Net (decrease)/increase in cash and cash equivalents (273,386) 551,474

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Cash and cash equivalents at beginning of the year (1,231,574) (1,783,048)

Cash and cash equivalents at end of the year (1,504,960) (1,231,574)

2012 2011 (Rupees in ‘000)

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Cost Of Goods Manufactured Statement

Direct materials used

  Beginning raw materials inventory 6,200

  Add: Cost of raw materials purchased 49,400

  Total raw materials available 55,600

  Less: Ending raw materials inventory (5,800)

    Total raw materials used 49,800

Direct labor 125,600

Manufacturing overhead

  Indirect materials 4,100

  Indirect labor 43,700

  Depreciation—factory building 9,500

  Depreciation—factory equipment 5,400

  Insurance—factory 12,000

  Property taxes—factory 4,500

    Total manufacturing overhead 79,200

Total manufacturing costs 254,600

Add: Beginning work-in-process inventory 10,20

264,800

Less: Ending work-in-process inventory (9,800)

Cost of goods manufactured 255,000

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Cost of Goods Sold Statement

For the Period Ended December 31, 2012

Cost of Goods Manufactured 255,000,000

Add: Finish Goods (Beginning) 7,561,532

Goods available for sale 45,786,945

Less: Finish Goods (Ending) (25,778)

Cost of Goods Sold 25,231,532

Cost of Raw Material per Tyre

INPUTS PERCENT/TYRE COST/TYRERubber 43% 3,300

Nylon Cord Fabric 18% 520Carbon Black 11% 200

Rubber chemicals 5% 470Butyl Rubber 4% 380

PBR 5% 600SBR 5% 550

Other 9% 650Total 100% 6,670

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MANAGEMENT of Companies:

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Chairman

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer(Plant & Projects

Executive Director Corporate Affairs / HR

Sr. General Manager Works

General Manager - O.E & Government Sales / CS

Group Resident General Manager - Islamabad

Executive Director Marketing & Sales

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