saadullah internship report

7/23/2019 Saadullah Internship Report

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ISRA UNIVERSITY HYDERABAD

Internship Report

Submitted in partial fulfillment of the requirement for the degree of Bachelors of Business Administration

(Hons).

Submitted by:

Saadullah Solangi

1010bba!"

Super#ised by:

$r. %a&ed 'ars

'epartment of management Sciences

aculty f commerce* +conomics , $anagement Sciences

-SA /-+S-23* H3'+ABA'.


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Isra University

Faculty of Commerce, Economics and Management Sciences

Certicate

This is to certify that Mr. Saadullah Solangi, S/O Masood Ahmed Solangi, student

of BBA has worked under my supervision for completion of internship report as a

partial reuirement for the award of the degree of Bachelors of Business

Administration! his work is ful"lling all reuirements and guidelines as

prescri#ed #y the university.

Prof. Dr. Asandas Manwani Assistant Prof. Jawed Dars

Chairperson, Report Supervisor

Faculty of Commerce, Economics Faculty of Commerce, Economics

and Management Sciences and Management Sciences

Isra University,Hyderabad Isra University,Hyderabad


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Acknowledgement:- am #ery grateful to the honorable 4+* 5a6istan steel for pro#iding me the opportunity for training

and &hose intelligence* &ise and sound leadership has con#erted manpo&er into &inning

combination by this industry into a gold mine.

- am than6ful to my internship report ad#isor Sir. %a&ed 'ars &ithout his guidance it &as not easy

for me to complete my &or6. - &ish to e7press my deep gratefulness to $. ABSA AB-* 5+

(H') for his consideration and super#ision. -t &as a memorable time in 5a6istan Steel due to his

6ind concern.

- am also than6ful to $r. A+SH 8/$A in charge H' and $r. 3/SA A3/B

'y. $anager9-n charge (-n5lant 2raining) for his precious ad#ice and for the great encouragement

and cooperation* because of &hich - ha#e successfully completed my internship training at 5a6istan

Steel.


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Executive Summa!

5rior to detailed description* &e are stating the summary of internship report. Basic purpose behind

this is to gi#e a clear #ie& of their port and about the efforts that ha#e been ta6en to complete the

program. - &as assigned 5a6istan Steel to &or6 there as internee for the practical e7posure. $y

-nternship &as started from %une ;01< to 1= %uly ;01< &ith aim to study each and e#ery aspect of

organi>ational setup* departmental &or6ing and the &or6ing process* the documentation proceed of

the giant organi>ation.

2he multibillionrupee pro?ect of 5a6istan Steel is not only fulfilling the steel requirements of the

country but also offering different training programs to its employees and also the students from

different uni#ersities of different sub?ects. As the student of B.B.A &as deputed in Administration

and personnel* $ar6eting* 5ublic elations* 5urchase and Account to obser#e the functioning of

these departments. 2he report in hand consists of my si &ee6s e7perience during internship.

2he report starts &ith introduction of the organi>ation* &hich co#ers detailed history and

bac6ground* production capacity and products do&nstream industry* organi>ational structure and

some other important aspects. After there are functions performed by different departments &or6ing

in the organi>ation. As &e all are a&are that de#elopment and gro&th of any country is largelydependent upon the iron and steel industry. So the impro#ements and de#elopment of that industry is

of much importance for any country and especially the de#eloping countries li6e 5a6istan.

5a6istan steel is &or6ing &ell in less resources but our political structure is disturbing the strategies

of 5a6istan steel. 5a6istan steel has a great beneficial effect on national economy. -t has been

instrumental in creating ne& ?ob opportunities. -t is the base for do&nstream industry in the country.

2he 5a6istan steel recogni>es the staff &elfare and gi#es them due importance as &ell. -t has

arranged residence for its employees and introduces ne& scheme for their &elfare.


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"i#t o$ A%%eviation#:

5S$: 5a6istan Steel $ill

52: 5ri#ate limited

8$: 6illo $eter

-S: -nternational Standard of rgani>ation

+B-: +mployees old Age Benefit

A4: Anuall 4onfidential eport

45 , H: 4areer planning and human resource

'S , 4: 'ues settlement and #erification cell

4BA: 4ollecti#e Bargaining Agent

5: 5ublic relation officer

'44: 'ata collection 4ell

Ta%le o$ &ontent

4hapters ame 5age o

' Intoduction

'(' -ntroduction 2o eport'() b?ecti#es f eport'(* 4ompany 5rofile

4hapters ame 5age o.

) +veview o$ t,e +gani-ation

)(' ision and $ission Statement)() unctional 'epartments

)(* 5roducts and Ser#ices


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)(. rgani>ational Hierarchy

4hapter ame 5age o.

* /unctionalDe0atment#*(' Administration and personnel*() Accounts*(* $ar6eting*(. 5ublic elations*(1 5urchase 'epartment

4hapter ame 5age o.

. &onclu#ion and Recommendation

.(' 4onclusion

.() ecommendations

.(* eferences

Chapter 1

Introduction


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Intoduction to Re0ot

2he engineering goods industry is recogni>ed &orld o#er as most critical for the de#elopment of a

selfreliant and #ibrant economy. 2his industry* ho&e#er* depends hea#ily on basic metals* especially

-ron , Steel as resource inputs. 2he -ron , Steel industry* therefore holds the 6ey for sustained

gro&th of the engineering sector and hence for de#elopment of the economy as a &hole. As such thesteel industry can be termed as @$other industry@ to all modern industries* being the basic source of

metal for them. -n this* prospecti#e the importance of national assets such as 5a6istan Steel &hich is

determined on their strength and ability to sustain the national gro&th rate* need not to emphasi>ed.

Abundant steel sufficient po&er adequate transports are other&ise industriali>ation of de#eloping

countries today. 2he construction of 5a6istan steel &as started from 1= and completed at a cost of

;


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rolled billets (;!0000 tons per year) pig iron (1"000 tons) hot rolled sheets9coils (


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impossible to support.

2he initial idea for a domestic iron and steel mill &as put for&ard in the first fi#e year plan of

5a6istan (1="" 1=!0). 'ebates o#er the manufacturing process* supply sources of the requisite

machinery and ra& materials* plant site* domestic ore #ersus imported ore* o&nership pattern*

product mi7 and abo#e all foreign financing credit 6ept the pro?ect on hold for a considerable time.-n 1=! besides other factors* it &as considered by the Do#ernment of 5a6istan that a basic steel

industry should be established in the public sector* as public sponsorship of the pro?ect &ould enable

integrated de#elopment of the steel industry in the country. -n light of this* the go#ernment decided

that the 8arachi Steel 5ro?ect should be sponsored in the public sector for &hich a separate

4orporation under the 4ompanies Act be formed. As a result on the;nd of %uly* 1=! 5a6istan Steel

$ills 4orporation &as setup as a pri#ate limited company in the public sector in accordance to the

4ompanies Act of 1=1* &ith the ob?ecti#e to establish and run steel mills at 8arachi and other

places in 5a6istan.

-n %anuary* 1=!=* 5a6istan Steel concluded an agreement &ith 92 then /SS for the preparationof a feasibility report into the establishment of a steel mill at 8arachi. Subsequently in %anuary* 1=1

5a6istan and the /SS signed an agreement under &hich the latter agreed to pro#ide techno

financial assistance for the construction of a coastal based integrated steel mill at 8arachi. 2he

foundation stone for this gigantic pro?ect &as laid on the 0th of 'ecember* 1= by the then 5rime

$inister $r. Gulfiqar Ali Bhutto. 2he mammoth construction and erection &or6 of the integrated

steel mill* ne#er e7perienced before in the country* &as carried out by a consortium of 5a6istani

construction companies under the super#ision of So#iet e7perts.

5a6istan Steel did not only ha#e to construct the main production units but host of infrastructure

facilities in#ol#ing unprecedented #olumes of &or6 and e7pertise. 4omponent units of the steel millnumbering o#er t&enty and each a big enough factory in its o&n right &ere commissioned as they

&ere completed bet&een April* 1=1 to August* 1=" &ith the 4o6e #ens and By 5roducts 5lant

coming online first and the Dal#ani>ing /nit last. 4ommissioning of Blast urnace umber 1 on the

1ed from the

construction inputs &hich in#ol#ed the use of 1.;= million cubic meters of concrete* ".0 million

cubic meters of earth &or6(second to 2arbela 'am)* 0*000 tons of machinery* steel structures and

electrical equipment. -ts unloading and con#eyor system at 5ort Easim is the third largest in the

&orld and its industrial &ater reser#oir &ith a capacity of 11 million gallons per day is the largest

in Asia. A ;."6m long sea &ater channel connects the sea &ater circulation system to the plant site

&ith a consumption of ;1! million gallons of sea &ater per day.


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5a6istan Steel did not only ha#e to construct the main production units but a host of infrastructure

facilities in#ol#ing unprecedented #olumes of &or6 and e7pertise. 4ommissioning of blast furnaceo. 1 on 1< august 1=1 mar6ed 5a6istans entry into the elite club of iron and steel producing

nations. 2he pro?ect &as completed at a capital cost of s. ;ed later to underta6e

million dollar pro?ects both &ithin the country and abroad especially the $iddle +ast.


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CHAPTER# 2

OVERVIEW OF THE ORGANIATION

Vi#ion and mi##ion #tatement

2o become a leading steel company in south Asia committed to ser#e sta6eholders by offering

quality products through inno#ati#e and cost effecti#e manner in en#ironment friendly condition.

/unctional De0atment#

Administration , 5ersonal 'epartment

Accounts 'epartment

$ar6eting 'epartment


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5ublic elation 'epartment

5urchase 'epartment

3oduct 4 Sevice#

PAKISTAN STEEL PRODUCTS

5a6istan Steel 5roducts are being conforming to international standards. As a result of their high

quality* 5A8-S2A S2++C has been able to e7port a large quantity of products i.e* 5ig -ron* 4o6e*

Billets and Hot olled 4oils to %A5A* SJ+'+* S-DA5+* /-2+' AAB +$-A2+S*

S-CA8A* -'+S-A* S/2H 8+A* /SA* D+$A3 and 4H-A etc.

5ain 3oduct#

4o6e

4o6e 'ust 01mm

5ig -ron

Billets

Hot olled 4oils9 Sheets

4old olled 4oils9 Sheets

Dal#ani>ed 4oils9Sheets

ormed Sections

+THER 3R+DU&TS

4oal 2ar (Jater "F)

Dranulated Slag

Ammonium Sulphate

7ygen

4on#ertor Slag

itrogen

Boulder Slag

efractory Bric6s -ron 7ide

Ginc 'ross

SERVI&ES

+rection9installation of different mechanical plants* structural equipments* o#erhead bridges

and gantry cranes.

+7ecution of ma?or repairs* pre#enti#e maintenance* shut do&ns of industries and plants.

Shop floor assembling9disassembling re#ision , o#erhauling. abrication of ducts* pipe

bending* D- corrugated sheet for roofing* fans* blo&ers and impellers etc.


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epair9 $aintenance of o#erhead bridge cranes* gantry cranes* &eighbridges ,

cargo9passenger lifts.

epair , rectification of machineries , equipment9module.

+gani-ational

Hieac,!:


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Chapter# !

Functiona" epart$ent

AD5INISTRATI+N 4 3ERS+NNE" DE3ART5ENT

2his department is responsible for allo& the affairs of the employees including &or6ers and officers*

daily &ages and regular. All the records of the employees are held &ith this department. 2his

department maintains separate files for each employee. All the affairs of the employees including

promotion* retirement* pension* document #erification* lea#e* disciplinary issues etc are controlled

and coordinated through this department. 2his department is further di#ided into sub sections

including:

$ 3e#onnel A #ection

$ 3e#onnel B #ection

$ Em0lo!ee# old age %ene$it 6E+BI7

$ E#ta%li#,ment

$ A&R 6Annual &on$idential Re0ot7

$ Di#ci0lina! cell$ Due# #ettlement 4 Vei$ication# cell

$ 3olicie# and coodination #ection

3e#onnel A Section

2his section deals &ith the files of the officers. All the issues regarding lea#es* retirement*

termination* promotion* la& suits etc are recofd and maintained there. 2he officers classification by

the department is

$ Regula

$ &ontact

$ De0utation

$ 3o%atione#


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T,e $illing o$ t,e document i# #uc, t,at t,e $ile# o$ an o$$ice ae divided into two cate#:

Noting $ile2his file consists of the entire document including applications* recommendations and remar6s etc

about the officers.

&oe#0ondence $ile:

2his file consists of all the other documents of the offices li6e promotion letter* personal documents*

&arning letters* and certificates etc.

T!0e# o$ leave#

+arned lea#e:

2his is 1911 th of the period spend on duty. -n any one &ants lea#es from this cadre* he or she

has to apply for minimum " days. 2hese are paid lea#es as the name implies. -f some one is not

a#ailing this lea#e. -t is accumulated and added into ne7t years lea#e. 3ou can a#ail ma7imum

!" days of your earned lea#e if remaining in form of C5 and also you can Ancash !0 as

other option.

4asual lea#e

is a lea#e &hich you can ta6e in normal circumstances and these are ;0 in a year. 2hese are

also paid lea#es but a#ailable only &ith in the year not after it.

$edical lea#e

is of 10 days in a year and can be accumulated till ""days. -t is also paid lea#e and gi#en on

the recommendation of doctors.

Accident lea#e

8ade# and &ade#:

$anagement Drades4hairman 5S$4'irector $;5rincipal +7ecuti#e fficer 5S$4

Deneral $anager 5S$4

+7ecuti#e 4adres'eputy Deneral $anager 5S+"

$anger 5S+ation* but the actual man po&er may

de#iate from the rationali>e one. 2his actual man po&er is called holding* li6e the rationali>e for

officers is

hierarchy of monogram of the organi>ation. 2his department also account for the quota of different

units and other districts.

T,e ;uota cla##i$ication o$ 3aki#tan #teel mill i# given %elow:

"0 F 5un?ab

.!F Sindh /rban11.


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Account# De0atment

Accounts department is one of the most important departments of 5a6istan Steel* &hich is

responsible for pro#ision of efficient and effecti#e recording all the transactions &hich are occurred

in 5a6istan Steel. 2he account section of 5a6istan steel is &or6ing under the super#ision of D$

accounts.

It ,a# $ut,e divi#ion# in t,e vaiou# #ection# t,e#e ae $ollow#:

Bill Section:

2he bill section is directly under super#ision of cost department. Bill section of cost department deals

in many things regarding 5a6istan steel* the contractor ci#il &or6* purchase of products* imports ofra& material , other payment related &or6s. All documentation are made , recei#ed in the bill

section regarding billing of contractors and imports of ra& material etc.

"ocal #u00l! %illing(

&ontactual wok %ill#(

Billing o$ medical #toe# and ot,e medical $acilitie#(

Billing o$ im0oted aw mateial(

"ocal #u00l! %illing

Billing of local supplies is also performed here , other related formalities regarding supply of good

are super#ised. Bill section prepares the #ouchers for the payment to suppliers after recei#ing

suppliers bill along &ith supporting document including purchase in#oice* store recei#ing report

($)* inspection certificate , in the end laboratory testing report.

&ontactual wok %ill#(

All 6ind of ci#il &or6s on contract basis are dealt here. 2he letter of a&ard is also documented here


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for the &or6ing as contract states. Bills section performs the routine &or6 , prepares the #oucher ,

sends to the cash department.

T,e lette o$ awad $ul$ill# t,e $ollowing t,ing# %! contacto:

1. Stamp paper of amount mentioned in letter of a&ard.

;. "F pay order ban6 performance guarantee in fa#or of 5a6istan steel.

. -nsurance by appro#ed insurance company of 5a6istan steel.

Jhen any interim payment is made to contractors then a separate boo6 is maintained in the name of

contractors called the measurement boo6 ($B). All records of interim payment made to the

contractor is 6ept in $B.

Billing o$ medical #toe# and ot,e medical $acilitie#

Bill section prepares the #ouchers for medical , medical stores section. Bills section 6eeps the

records of department requisition , too &hen any purchase made regarding the medical products

then bills section offers the tender notice* select the least purchase price (C55)* issue the purchase

order* after arri#al of products material recei#ing #oucher ($) is prepared after $ the product

inspection is done , in the end material recei#ing report ($$) is issued. inally 6ept in the store

to issue the department.

Biling o$ im0oted aw mateial

After recei#ing the bill of lading* bill of entry* foreign , local lab tests* in#oices , permission from

finance department clearance for&arding bills section prepares the #oucher for payment of importers.

Ad?ustment of imports are made &hen $$ is recei#ed then ad?ustment of duties , ta7es are made

in the boo6s then cash #oucher is made is sent to the cash department. 2hen total charges paid are

added to the total cost paid for the supplies. 2he finance department authori>es the final allocation

payment of imports in the form of foreign currency.

Advance# Section:

2he ad#ances section &ithin the appro#ed ceiling limits grants the ad#antage to the department for

the current needs. 2hese ad#ances are granted to the department against their e7panses* ad#ances

against imprested , ad#ances against 2A9'A. 2hese three 6inds of ad#ances are granted to the

department as per their departmental needs. nce the ceiling for a department is appro#ed* it cannot

be altered until the ne7t year budget* , the ad#ances section has to pro#ide facilities of ad#ances of


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ad#ances to the department according to those limits for the year. 2here is procedure to appro#e for

the e7penses* imprested , or 2'92A. Ad#ances section chec6s the accounts to grant the ad#ances to

the department* if the account is empty of the department 1hen ad#ances section deny allo&ing using

the account until the appro#al from the chairman comes for the ser#e needs of the organi>ational

departments.

Re#0on#i%ilitie# o$ Advance# #ection:

2he scope , function of the ad#ances section may be summari>ed as bello&.

S0ecial advance#:

2he ad#ances section also handles special ad#ances in addition to the department imprest holding*&hen a department needs e7tra finances to incur additional e7penditure &hich cannot be met through

the normal imprest. 2he concerned department first see6s chairman appro#al before requesting

ad#ances section to pro#ide a special ad#ance.

Advance# again#t ex0en#e#

Ad#ances section also grants ad#ances to employees against the e7penditure incurred for official

purpose &here the employees department does not maintain a sanctioned -mprest.

Advance# again#t TA=DA

2he ad#ances section also pro#ides 2A9'A to employees as per the rules of the corporation* against

local , foreign trips for official purpose or on relocation of employees from one section to another.

3a!oll Section

2he 5ayroll Section mainly deals &ith the salaries* allo&ances* loans and ad#ances full and finalsettlement of employees at the time of retirement* resignation or filing* income ta7 and other

deductions from employees salaries* deposit of deducted income ta7 in go#ernment treasury* etc.

payroll is processed on the basis of last month attendance. 2he 5ayroll program is prepared by the

5ayroll Section requesting the 'epartmental Heads to send the required data by the dates mentioned

in the salary program. 2he $anager 5ayroll is heading this section. He is granted &ith unlimited

authority o#er appro#al of monthly salaries of follo&ing categories of employees:

%


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3emanent Em0lo!ee# 6including o$$ice# and #ta$$7

&ontact Em0lo!ee# Dail! ed as follo&s:

$ 5ayroll 5rocessing of 'aily Jages +mployees: 'aily &ages employees are appointed by the

administration and 5ersonnel (A,5) 'epartment. 2he 5ayroll Section recei#es the details of

daily &ages employees fro respecti#e departments and processes their salaries.

$ 5ayment and 'eduction of Coans and Ad#ances: +mployees are pro#ided &ith loans and

ad#ances against their salaries. 2hese granted loans are secured against the employees

pro#ident and gratuity fund balances. 2he 5ayroll Section recei#es details of the loans and

ad#ances and initiates the payment process that ends &ith the preparation of cheque by the

4ash Section. 2he granted loans are deducted from the employee monthly payroll in

installments o#er a defined reco#ery period.

$ 5ayroll 5rocessing of employees: 5ayroll processing is completed as per the salary program

prepared in ad#ance. 5ayroll Section complies the attendance data recei#ed from #arious

departments and processed it &ith the help of the -S$ 'epartment.

$ econciliation of 5ayroll Subsidiary Cedgers: 2he -S$ 'epartment pro#ides subsidiary

ledgers to the 5ayroll Section. 2he 5ayroll Section compares these ledgers &ith the control

accounts and reconciles the both.

L ull and inal Settlement of 'ues of utgoing +mployees: ull and final dues of outgoing

employees are calculated by the 5ayroll Section. 2he positi#e balance is paid to the employees&hereas* the negati#e balance (if any) is reco#ered from the employee or from the pro#ident

9gratuity fund balance.

/und Section:

-n order to facilitate employees and secure their future* 5a6istan steel has set up und section.


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'7 3ovident $und(

)7 8atuit! $und(

*7 ed as follo&s:

M Assigning a customer code to a ne& customer* &hen co#ering letter along &ith the prescribeddocuments is recei#ed from the $ar6eting department.

$ +ntering customer data into the system.

$ Denerating sales in#oices after particulars of Date 5ass are matched &ith those of the 'eli#ery

rder on line basis.

$ ecording Sales in the system.

N issuance debit9credit notes on the basis of Amended 'eli#ery rder representing the product

price changes short or e7cess deli#ery of the products.

$ 5reparing econciliation eport* depicting summary of all recei#ables and payables due to or

from the customer* &hen account of a customer is being terminated.


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$ 5reparing monthly product &ise report for information to the senior management.

esponsibility of $anpo&er:

2he assistant $anager is responsible for generation of cheque* payment ad#ice and cash #oucher and

for obtaining ac6no&ledgement from the personnel collecting the cheque.

2he 'eputy $anager is responsible for re#ie&ing the particulars of cheque &ith the supportingdocuments.

2he Authori>ed Ban6 Signatories are responsible for the signing of cheque.

Sale# Section

Sales account section is established to document and record accounting transaction for

the recognition of sales re#enue* handling dealership deposits and preparing 'ebit

94redit notes to accommodate for price changes. -t is also in#ol#ed in the completion

of sales data* preparation of monthly product &ise sales report and the distribution to

the senior management of the 4orporation. 2he company enters into Sales 4ontract

&ith the customer &hich outlines the terms and conditions under &hich sales are

made.

T,ee ae two mode# o$ #ale#:

$ -n case of cash sales* payments are al&ays recei#ed by the 4orporation before the preparation

and issuance of 'eli#ery rder.

-n case of credit sales* credit terms #ary from 0 days to 10 days depending upon the tenure of C4

gi#en against any particular credit.


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&o#t Section

Extenal Re0oting

2he 6ey tas6 for the cost accountant is contributing information to a companys e7ternal financial

reports. -n many cases &here the main accounting function is percei#ed to be financial reporting* the

other tas6s of the cost accountant may #ery &ell be subordinated to pro#iding #arious types of

information for these e7ternal reports. A 6ey piece of information pro#ided by the cost accountant is

in#entory #aluation* &hich in turn impacts the cost of goods sold. Se#eral tas6s are in#ol#ed here*

such as deciding on the type of cost layering technique* ensuring that in#entory quantities and costs

are accurate* and compiling the resulting data into the formats required for e7ternal reporting.

ther related &or6 may also need* such as compiling profitability le#els for #arious product lines* or

profit le#els by di#ision. 2he cost accountant may also become in#ol#ed in the compilation or

updating of a fe& footnotes to the financial statements* though most of these are handled by the

Intenal Re0oting

2he ad#antage of ha#ing cost accountants create reports strictly for internal consumption is that they

are not restricted to Denerally Accepted Accounting 5rinciples (DAA5) &hen preparing these

reports. DAA5 requires the use of full absorption costing in creation of e7ternal reports* &hich may

not be necessary or may e#en be counterproducti#e for internal reporting purposes. Accordingly* the

cost accountant is free to use any costing paradigm that &ill result in the most informati#e reports forthe management team ?ob costing* process costing* direct cost costing* acti#ity based costing*

throughput costing* and so on. Alternati#ely* a report can be based on throughput costs if the issue is

ho& to push the correct product mi7 through bottlenec6 operation in order to deri#e the highest

possible profit.

Scoekee0ing

2he last t&o sections ha#e focused on the role of cost accounting in the preparation of formal reports.

Ho&e#er* in the terms of #olume* the cost accountant probably issues more score6eeping report cardsthan reports. 2hese are simple reports usually presetting a trend line of performance for a single 6ey

measurement that is posted frequently perhaps daily.

Budgeting

Se#eral of the subsidiary le#el budgets that roll up into the main corporate budget in#ol#e

information to &hich the cost accountant can contribute a great deal. or e7ample* the production

budget includes estimated direct costs for each product the company e7pects to manufacture in the

upcoming year* as &ell as estimated o#erhead allocations per unit based on e7pected production


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#olumes. 4ost accountants are in the best position to supply this information since they ha#e access

to all the needed information bills of material* routings* throughput capacity constraints* and sales

estimates by unit. Similarly* the direct labor budget requires input about e7pected labor costs* &hich

requires information from the cost accountant regarding e7pected labor utili>ation rates and o#ertime

estimates. inally* the cost accountant is frequently called on to estimate facility &ide budgeted costs*

including those in such categories as repairs and maintenance* insurance* and utilities.

3icing:

2his group needs to 6no& the cost of each product sold so that it does not set prices that are belo& a

products cost* thereby creating loss on e#ery unit sold. 2he cost accountant is in charge of compiling

these costs and presenting them to the sales and mar6eting staff. 2his tas6 is of particular importance

&hen customers come to the company &ith offers to accept large #olumes of product only if the sales

price is substantially lo&ered. -n these instances the cost accountant must determine the direct cost of

the product in question* as &ell as the added cost of o#erhead directly associated &ith the production

run that creates the customers product. -t may also be useful to determine the o#erall impact on

company profits #ia a throughput accounting analysis.

/inal Account# Section

/ixed A##et#

2he fi7ed assets of the 5a6istan steel are di#ided in to nine categories. All accounts of 5a6istan steel

are computeri>ed centrally , each account is assigned a code alphabetically. Ci6e alpha 8 is

assigned for fi7ed asset. 2he depreciation of different fi7ed asset is made on different percentage. -t

#aries due the nature of fi7ed asset* their period of &or6ing , the life of assets. 2he depreciation

method of 5a6istan steel adopted is reducing balance method.

2he J.' alue O 2otal cost (Accumulated 'epreciation)

or the contractual &or6 of fi7ed asset BE (boo6 of quality) is prepared &hich is ?ust estimate for

the proposed contractual &or6. Jhether the proposed contractual &or6 is technically feasible by

contract. 2hen tender is opened is , engineering department &ill time of completion , all

specification are mentioned. 2he representati#es of 5a6istan steel loo6 after the construction &or6.

ne copy of letter of a&ard is reached to the accounts department , account of contractor is opened.


29/42


30/42


31/42

5AR>ETIN8 DE3ART5ENT

-n order to sell 5a6istan steel products profitability and in an efficient manner the follo&ingprocedures ha#e been adopted under the guidelines of our mar6eting department. 2o ensure the

smooth flo& of our products through the country and achie#e ontime deli#eries to our #alued

customers 5a6istan steel has established >onal sales offices at strategic cities across 5a6istan.

+N"INE &+53UTERS SA"ES:

1. 2he >onal sales offices* incorporating modern computers facilities to promote sales* pro#ide a

one &indo& operation to our #alued customers.

;. 2he a#ailable computer facilities ha#e been utili>ed to pro#ide an @online computer system@

for the production* mar6eting* and sales acti#ities.

. 2he e7isting system has been made to &or6 trouble free in this ne& &orld of globali>ation.

SA"ES &+NDU&T THR+U8H &+NTRA&T SYSTE5:

2he sales of 5a6istan steel products ta6e place through a systematic procedure &hich can be

summari>ed as follo&s:

1. 5lacement of orders by authori>ed dealers (traders and consumers).

;. Signing of the contract &ith dealers on #erification of the production. Ad?ustable security

amount s9O "0 and s9O 100 per metric ton of the total amount of the contract is recei#ed at

the time of signing of the contract.

. receipt of the product transfer ad#ice (52A) for the production needed by the 5a6istan steel

products store (5S5S)* the clients are issued s accordingly to ma6e payments* recei#ed

deli#ery into lift the material &ithin the stimulated period.


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2he sale of 5a6istan steel products is channeli>ed through our dealership net&or6. 2o 6eep the &hole

procedure of sales transparent* free from base* pre?udice and to a#oid lac69mar6eting a&arded

dealership after scrutiny* ?udgment of credibility* past performance and income ta7 record.

'ealership is offered in the follo&ing categories against refundable security deposits. 4ategory A 1

4o6e 5ig iron , Byproductss. 1"0*000

4ategory PB Cong 5roducts s.;"0*000

(Billits9Blooms9 Slabs94obble 5late)4ategory 4P flate products (H949D594obble 5late) s.


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/o HR=&R=BI""ET

or quantities "000 $2 and abo#e s9O "0 5$2 or

quantity belo& "000 $2 s9O 1 00 5$

/o coke =0ig ion=B! 0oduct#

$ or co6e9 pig iron9 By products s9O "0 5$2

$ slag "F of the contract #alue

6ii7 @uantitie# and Toleance

$inimum quantity for placing order against a contract &ill be as under:

3oduct 5inimum @uantit!

H products 00 $2

4 , Dal#ani>ed product 100 $2Billets , Balooms 100$2

Byproducts 100$2

$ Euantities are sub?ected to re#ision &ithout any notice or reference.

$ Euantities #ariation in the case of supplies &ill be QR1 0F of the total contractual quantities on

the seller options.

6iii7 3ice#

4ontractual prices &ill be tentati#e. 4ustomers &ill be liable to pay the prices pre#alent at the time of

ta6ing deli#ery of material. Any ta7 9 duty le#ied by the go#ernment* not applicable at the time of

signing of contract* &ill also be payable by the customers before ta6ing deli#ery.

6iv7 Delive! 0eiod# 6Tentative7

or commercial and standard grades 9si>es* tentati#e deli#ery periods &ill be as under:

H 4oils: 1;0 &or6ingdays

4 4oils: 1;0 &or6ingdays

4 Sheets: 1"0 &or6ingdaysH 5ic6eled , il: 1"0 &or6ing days

D5 4oils: 1"0 &or6ing days

Billets: !0 &or6ing days


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6v7 &ontact# 5a! Be Signed ointl! B! T,e /ollowing:

6vi7 Notice o$ Readine## 6N+R7:

2he material shall be offered to buyers in part or fuel as and &hen recei#ed from the production

departments. 2he notice of readiness () &ill be ser#ed through tele79fa79courier or through

personal contact to obtain the deli#ery order &ithin se#en &or6ing days from the date of issuance of

notice and lift the material &ithin se#en &or6ing days from the issuance of the '. failing &hich the

reser#es the right to security amount in full of prorata to the quantities remained unlifted.

6vii7 Si-e?5ix 6Standad &ontact7:

1. Si>e ratio for signing contract of H 5roducts

nly ;.0 mm ;0F

1.!91.mm 0"F

1.=9;.0mm 10F

1 " F

;. Si>e ratio for signing contracts of 4 (4old ole) , D5 (Dal#ani>ed 5roducts)

nly o#er 0.! , up to 0.mm


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4ustomers &ill deposit a security amount s."09O5$2 of the entire quantity of the unning9 long

term contract through pay order 9Ban6 'raft. 2his security amount &ill be refunded9 ad?usted again

their ne7t contract upon completion of the unning9long term contract.

4ontractual prices &ill be tentati#e and are sub?ect to change &ithout notice. 4ustomers &ill be liable

to pay the prices pre#alent at the time of ta6ing deli#ery of material. -n addition* any 2a7 9'uty

le#ied by the go#ernment* not applicable at the time of signing of the unning9Cong 2erm 4ontract*

&ill also be payable by the customers before ta6ing the deli#ery.ormat of unning9Cong 2erm

4ontract along &ith terms , conditions is placed at Anne7ure -.

6c7 +3EN SA"E:

1. 2he offplane* off grade and uncommitted stoc69 material &ill be sold to registered dealers time

to time.

;. Do#ernment department may also be pro#ided material e#en outside the dealership

net&or6* if material is directly purchased by them on cash payment (being one time deal)

and commission &ill be allo&ed.. $aterial pertaining to stuc6up9incenti#e* pac6et shall be sold as per laid do&n procdure

appro#ed from time to time. Ho&e#er* stuc6up portion of pac6et may be sold on credit as per

policy in #ogue.

6d7 TENDER SA"E:

Slo& mo#ing9 stuc6up9 old stoc6s may also be offered for sale through tenders 9 auctions against

re#erse price fi7ed by the price fi7ation committee.

6e7 SA"E +/ 3A>ISTAN STEE" 3R+DU&TS T+ &+NSU5ER

n the &ritten request of a consumers9 manufactures* 5a6istan steel may quote to them a pro?ected

price to be held firm for specific period depending upon the ordered quantity and e7pected duration

of a contract to be decided on case to case basis.

Ho&e#er* the actual contract &ill be signed only after receipt of letter of a&ard to the customers9

manufacturers. 2he abo#e offer &ill be sub?ect to the condition that the customers9 manufacturers.

1. 'eposit security money 0."F of the total #alue of the products against the of lading as a proof

for e7port.


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sale.

6,73RI&ES AND 5+DE +/ 3AY5ENT

1. All prices &ill be based on +7&or6* 5a6istan Steel Bin Easim* e7clusi#e of sales ta79 income

ta79 duties9 other local ta7es etc and transportation.

;. Sale &ill be conducted through Ban6 'raft9pay order or against -rre#ocable letter of credit C94

negotiation charges shall be on the buyers account at actual.

. 4redit facility &ith mar6up charges: free credit facility &ith mar6up charges 0."F per 0

days up to period of 1 0 ma7imum &ill be a#ailable on the sale of 5a6istan steel products.

SU33"IES

'( E"I8IBI"ITY

nly genuine consumers of 5a6istan steel products are eligible to participate in the scheme.

)( /A&I"ITIES

i. 5riority in the production and allocation of material.

ii. 'eli#ery of material &ithin " &or6ing days from the date of request made against #alid running

contract* in case required material is a#ailable e7stoc6.

*( &+NDITI+NS

4onsumers dealers shall pay 10F of e7tra charges o#er and abo#e the listed prices of 5a6istan steel

products effecti#e at the time of ta6ing deli#ery of material under the premium price quic6 supplies.

Any consumer a#ailing this scheme &ill be debar ate from sale of such material in the mar6et. -n

case of default* his security amount may be forfeited besides cancellation of his consumer dealership.


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*

3u%lic Relation De0atment

There are %our sections in Pu&"ic re"ations depart$ent'

1. 5ublication , 5ublicity;. Ad#ertisement

. acilitation

ations about its policies* acti#ities and ser#ices.

$ 2o ad#ice the management on communication problems* solutions and techniques

to lesson liaison &ith medium concerned agencies and personal.

$ 5 deals the different types of agencies that ho& to formulate.

$ /tili>ation and formuli>ation. (preparing ad#ise)

$ 5ublication* broadcast* telecast of handouts* and press reliance of organi>ation.

$ 'e#eloped and finali>ations concepts of moti#ational films* posters and

ad#ertised* @Script of document@.

$ 2o encourage the suggestions and proposals of the employees.

$ 2o ensure the proper ne&s* photograph and #ideo topics of #arious organi>ation.

$2o de#elop and organi>e #arious factors among the employees in order to create sins ofbelonging &ithin the organi>ation.

$ 5eriodic and nonperiodic mo#ements* publications.

$ 2o ma6e the suggestions of your ideas arid concepts.

$ 2o deal the isiting guests about organi>ations.

3u%licit! Section o$ 3R:

P

$ 5 lessen &ith ne&spaper* radio * tele#ision information department.

Ad#ertising agencies * important consultant personaT.

$ 5reparation * collection of information data for submission to consultant* pro#incial and

federal go#ernment.

$ Scanning of ne&s paper and submission of reports.

$ 5reparation of speeches and inter#ie& material.

$ 5reparation of processing clearance and scrutiny of classified institutional

and promotional ad#ertisements.


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*

$ 4ollection of suggestion of employees on day to day problems.

$ 2o &atch and report day to day de#elopment of organi>ation.

/acilitie# Section:

$ 2o arrange and pro#ide photographic* audio #ideo and filming facilities to other

departments.

$ 'e#eloping* 5rinting and other &or6s related to photography for press releases.

$ 'isplay of photographs and preparation of blo& ups.

$ 5hoto state facilities.

$ Arrangement of #isits and delegation

(-5* -5* -nstitutional* Army* oreign*

$ Arrangements of briefings for delegations.

$ Arrange 'ocumentary films.

$ +ntertainment acilities (Students).$ 5eriodic (house ?ournal Al Hadid) maga>ine

$ onperiodic ( e&s* Bulletins)

$ on5eriodic ( Brushers cards reports etc).

$ 'isplays and e7hibitions.

3R De0atment i# #0oke#man o$ 3aki#tan Steel

5ill 3u%licit!:

4hec6 A'' that they are #erified or not.

$ 2hen gi#e control number and put entry.

$ 4ontrol number helps to search in future that &here it is.

$ Scanning the paper early in the morning.

There are t(o t)pes o% Add'

1. 4lassified Add.

;. -nstitutional Add


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*

3UR&HASE DE3ART5ENT

5urchase department deals &ith the purchase of different equipmentUs and machinery that comes

in hand for the operation of 5a6istan steel mill. 2hese items includes stationary* #ehicle*

machinery and spare parts etc. &hich are categori>ed under " different cps.

Tende o$$eing cell:

2ender offering cell is concerned &ith the purchase of all these items &hich are di#ided into

three different categories. High deals &ith items costing more than 1 core. $edium deals &ith 0

lac6s to 1 core and normal deals &ith less than 0 lac6s.

2he function of 24 by the rules of 5+5A is to pro#ide fair and equal opportunity to each

retailer. Jhene#er an item is needed* it is than published in ne&spaper to represent their

quotations. n the opening day of the tender &hich e#er retailer has the least quotations and

technical specification of the requirements of 5S$ is than ordered to pro#ide the consignment in

bul6 quality. 2hese are ; &ays depending on the nature of that are (ree on oute) has a

minimum 1" days deli#ery period and is suitable for truc6s dispatched by roads on the other

hand 4$ has a deli#ery period of minimum 0 days and is suitable for ships pro#iding

consignment coming from abroad.

Some tenders depending on their nature uses a combine method including commercial and

technical tenders &hich are suitable for orders less than 10 lac6s on the other hand* tenders more

than 10 lac6s are dealt &ith separate methods categori>ing commercial and technical tenders.

&3 ):

-t deals &ith the spare parts material hea#y machinery all that things are categori>ed under the

section of 45;. -t deals &ith the functions of preparing all the documents and requirements of

5S$ for the 24 and assists them in the purchase list of the listed. All the necessary paper &or6

and legal formalities is prepared under the section of cp;.

Jor6ing rolls* pac6ing rolls* spare parts* #ehicle* hea#y machinery* e7plosi#e* chemicals* tires*

are main items that are processed under this section head.


40/42

*

&3*:

2his section chec6s the rules and regulations of the tenders and chec6s all the documents of

suppliers of documents are clear and fulfill the proper requirement and tender documents must be

complete in case of tenderUs documents so retender it in cp.

Also chec6 the cost of products its cost increase* they chec6 that inflation rate &hich rises by

1"F according to 5+5A rules &hich is scrutini>ed by 4. (A2+ +ASABC+

4$-22+++)

&3.:

-t deals &ith the all types of barrels* pipes (54 * #al#es) * rolls metals* copper sheet* angel iron*

sil#er copper sheets.

ertili>e is most essential items from others 45s* because through it* &e can ma6e other itemsferial others* aluminum.

-n this section if any purchase or indent cause* 45V< first ge the case : of their departure after

getting case : they start their &or6.

&31:

2he process of tender opening is same as the other 45Us* only a minor difference is obser#ed

throughout the process. Hence the central purchase " is totally concerned &ith the materials

such as furnace oil* Dreece* fire chip* plastic* calcium fluoride* dolomite* maeny>or and top

holes* bric6s and oels.

S0ot 3uc,a#e:

2he &or6ing of spot purchase is different from other fi#e 45Us because there is no tender

opening and publishing* if any concerned department needs any item it should be pro#ided to it

by the mean&hile. -t fulfills the emergency requirement of any department &ithin fe& days as it

is short noticed and the departments need it urgently.

-t requires three quotations from the open mar6et and &e &ill go &ith the least amount quotation.


41/42

*

&HA3TER .

&onclu#ion 4 Recommendation#

&onclu#ion:

'uring the course of my internship* - found that 5a6istan steel &as set up &ith on ob?ecti#e to

achie#e a selfreliant and #ibrant economy. /p to some e7tent it has been successfully in

achie#ing this goal. -t has a highly beneficial impact on 5a6istans economy. -t has beeninstrumental in creating ne& hob opportunities* promoting ad#ancement its technological 6no&

ho&* enlargement of &ide range and #ariety of production* opening of ne& #istas of technical

and economical and economic cooperation internationally and gi#ing the start of the research and

de#elopment acti#ities in the field of metallurgy specifically and in other technological fields.

5a6istan steel has a potential to pro#ide a sound base for industriali>ation and can pro#ide

stimuli for setting up of do&nstream industries.

-t can also play a significant role in up gradation of technology and acquisition of ne&technologies. -t is also contributing billions of rupees to go#ernment of 5a6istan by&ay duties

and ta7es* but unfortunately this biggest industrial unit is suffering from #arious problems li6e

la6e of strategic direction* &ea6 financial position* and go#ernment positi#e attitude to&ards

imports* due capital repair* la6e of cost control* corruption and inefficient use of resources. After

o#ercoming these problems* it can ma6e its operations more efficient and ta6e the ad#antage of

e7pansion opportunity in order to e7ploit the future mar6et for iron and steel.


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Recommendation#:

$ $anagement must be pay attention to the capital repair of plant &hich other&ise &ill pro#e

costly for organi>ation.

$ ld conser#ati#e and costly employees should be replaced &ith young intelligent* qualified

and cheap generation.

$ 2he persons &ho are trained from abroad should not be allo&ed to ta6ing at any

time.

$ 5a6istan steel should be free from any political pressure.$ 5roper orientation should be gi#en to the mar6et and sales promotion acti#ities.

$ 2here are al&ays need to impro#e &or6ing condition and safety measures in the production

unit.

$ 5a6istan steel increases its probability and efficiency by promoting its do&nstream industries.

Re$eence#:

http:99tribune.com.p69story91;0119pa6istansteelmills#stheeconomy9

http:99&&&.pa6steel.com.p69organRourRhistory.html

http:99&&&.mar7ist.com9pa6istansteel&hiteelephantorhealthyprey.htm

http:99&&&.pa6steel.com.p69communRen#ironment.html

http:99&&&.brecorder.com9businessaeconomy91=911="09

http:99&&&.pa6steel.com.p69ser#ices.pdf
http://tribune.com.pk/story/12011/pakistan-steel-mills-vs-the-economy/http://www.paksteel.com.pk/organ_our_history.htmlhttp://www.marxist.com/pakistan-steel-white-elephant-or-healthy-prey.htmhttp://www.paksteel.com.pk/commun_environment.htmlhttp://www.brecorder.com/business-a-economy/189/1193530/http://www.paksteel.com.pk/services.pdfhttp://www.paksteel.com.pk/organ_our_history.htmlhttp://www.marxist.com/pakistan-steel-white-elephant-or-healthy-prey.htmhttp://www.paksteel.com.pk/commun_environment.htmlhttp://www.brecorder.com/business-a-economy/189/1193530/http://www.paksteel.com.pk/services.pdfhttp://tribune.com.pk/story/12011/pakistan-steel-mills-vs-the-economy/

saadullah internship report

Documents