INTERNSHIP REPORT 1

M. AWAIS RAFIQUE
ID: 08117025
MBA – Banking & Finance
GIFT University, Gujranwala, Pakistan

REPORT ON
“INTERNSHIP IN MASTER INDUSTRY (PVT) ltd”
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INTRODUCTION
Master is the trendsetting leader in sanitary fittings, wall and floor tiles and bathroom

accessories. The constant quest for perfection at Master spreads over more than three decades.

These decades 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.

Master 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.
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OVERVIEW OF THE ORGANIZATION

VISION

Master's vision is to lead the market with innovations in product development to improve the

quality of life and lifestyle of its customers. With timely adaptations to rapidly developing

technologies and meaningful investments in human resource training, Master will strive to

maintain the differentiation edge through provision of unmatched products and services to its

customers at a competitive price

MISSION

The ceramic tiles industry is a major force for the improvement of quality of life across the

world. Master aims to be the world’s leading manufacturer of best quality ceramic tiles and

pledges to provide its customers with latest designs, varieties and innovative products in line

with the internationally changing trends. Through achievement of our aim we will enhance the

wealth and well being of our stakeholders, employees and communities, whom we serve and in

which we operate

Objectives of organization

Master 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.

 INTERNSHIP REPORT 4

 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?

History of the organization

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

sanitary fittings in 1982. They started with providing full bathroom 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, in 1987, Master 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 1995, at a time when the market was flooded with imported wall tiles as the only quality

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

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

quality and aesthetic values than imported ones, Master 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 2000. In the

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

of tiles raw materials including frits and colours.

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Master’s Ceramic Granite/Porcelain is stronger than natural granite, better in resistance as

compared to marble and leaves both of them behind in aesthetics and gloss. Being completely

homogenous, this compact product of extra ordinary physical and chemical properties vitrifies

completely. It equals the technical strength, configuration, design quality and spread of color and

size range by top Italian, Brazilian and Spanish manufacturers.

Nature of the organization

Master Industry continuous to make innovative and glorious products for the people over three

and half decades. They are involved in technologically advanced products with a view to provide

an ease and betterment of the society. Their endeavors have resulted in bringing greater heights

of luxury in every body's range with affordable prices. 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.

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Awards & Achievements

Brand of the Year Award 2009

Category of Ceramic Tile

Brand of the Year Award 2009

Category of Sanitary Fittings
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Brand of the Year Award 2009

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Brand Award of Sanitary Fittings Brand Award of Ceramic Tiles

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

bring excellence in our products and services. Master believes that quality adds value and Master

has determined to serve our 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, Master 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.

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Quality of the end product at Master, 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,

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

together for the first time anywhere in the world.

Strength, Beauty & Hygiene:

Master 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 Stain:

Completely 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.

Business Volume

2008 2009
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TOTAL ASSETS 2630590695 2771444540

TOTAL LIABILITIES 1631534000 1995403000

NET ASSETS 999056659 776041540

Employees of the organization

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

the Organization and the employees are inseparable. At MASTER 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 Master industry Head office. Three business lines are working under this head

office. First Master Tiles & ceramics and second is Master sanitary fittings and third is Master

poly plastic.
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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
11 Sialkot Showroom 43
TOTAL 1349

Number of employees of Master Sanitary Fittings

Sr. No Categories Employees

1 Staff management personal 47
2 Market personal 59
 INTERNSHIP REPORT 12

3 Labors 272
Total 378

Number of employees of Master Poly Plastic

Total Employees : 118

Number of Employees of Head Office

Total staff : 153

Product Lines

Master industry has various product lines such as;

1. Master Ceramic & Tiles

2. Master Sanitary Fittings

3. Master Poly Plastic

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4. Master Baby Master (Dippers)

5. Master Ball Point

Product Range of Master Ceramics & 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

 24*24 Granite Polished

 24*36 Granite Polished

2. Wall Tiles

 8*8 Matt & Glossy

 8*10 Glossy

 8*12 Glossy & Semi matt

 10*13 Glossy & Semi matt

 10*13 Glossy, Semi matt & matt

 12*18 Glossy, Semi matt & matt

 10*20 Glossy, Semi matt & matt

3. Extra Decorative Products

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 4*12 Glossy & Semi matt

 2.2*10 Glossy & Semi matt

 2*8 Glossy

 2.2*10 Glossy

 2*10 Glossy

 2*12 Glossy

 1*1 Glossy

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
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10. Complete bath sets

Product Range of Master Poly Plastic

1. Bathroom accessories

2. Cock head

3. All plastic items related sanitary

STRUCTURE OF THE ORGANIZATION

Main Offices

The main office of company is located at G. T. Road Opposite Zinco Palace Cinema,
Gujranwala. In all other cities, the company‘s services are provided through there showroom and
distribution network in following cities.
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Cities Distributor name

Gujranwala Sharja Tiles
Rawalpindi Shakeel Trading Corporation
Lahore H.M Sons
Multan Decent Traders
Karachi Magoon Trading Co.
Islamabad Magoon Trading Co.
Peshawar Magoon Trader
Hyderabad Zoaib Ali and Co.
Gujrat BBC Traders
Narowal Faisal Traders
Jehlum Ali Traders
Mirpur Khan Traders
Okara Okara Traders
Sheikhupura Magoon sons

Organizational Organogram
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BOARD OF DIRECTORS

CEO

General Manager General Manager General Manager

Finance Sale & Marketing ADMIN

Production Marketing Sales

Manager Manager Manager

Plant Advertising Area Sale

Manager Manager Manager

IT Manager
MANAGER Administration

Management structure

Management structure of Master industry head office

Chief Executive Officer

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 Sheikh Mehmood Iqbal

Directors:

 Sheikh Muhammad Akbar

 Sheikh Muhammad Asghar

Company Secretary:

 Sheikh Muhammad Asghar

Auditors

 ILYAS SAEED & CO

Chartered Accountants

G M Finance

 Ghazanfar Mehmood Ahmed (F C A)

G M Sales and Marketing

 Muhammad Atif

G M Humane Resource Management

 Muhammad Rehan Ali

Principal Bankers

 Allied Bank
 KASB Bank
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 National Bank Limited

 Saudi Pak Commercial Bank
 Askari Bank
 Dubai Islamic Bank

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
 INTERNSHIP REPORT 20

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.

FINANCIAL ANAYLAYSIS
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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 MASTER 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

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
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1. Gross Profit Ratio

Formula:
Gross profit *100 / Sales

Years Gross Profit Sales Gross Profit Ratio

2006 67747469 911397870 7.433358276

2007 246238885 1068232571 23.0510557

2008 291113190 1158489421 25.12868782

2009 336309351 1578535476 21.30515

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 2006 is less as compared to and is higher in 2008.

Overall it is satisfactory.

2. Net Profit Ratio

Formula:
Net Profit *100 / Sales

Years Net Profit Sales Net Profit Ratio

2006 -132399376 911397870 -14.52706665

2007 36732122 1068232571 3.438588468

2008 83452916 1158489421 7.203597589

2009 108428559 1578535476 6.868933936

Interpretation
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Gross profit and net profit both have the same declining trend. In 2006, the theoretical Net Profit is less

but after that there seems an increasing trend.

3. Return on Investment

Formula:
Net Profit *100 / Capital Employed

Return on
Years Net Profit Capital Employed Investment

2006 -132399376 400000000 -33.099844

2007 36732122 400000000 9.1830305

2008 83452916 400000000 20.863229

2009 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 in 2006 but went on increase in 2007, 2008 and 2009.
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 Liquidity Ratios

1. Current Ratio:
Formula:
Current Assets / Current Liabilities

Current Current
Years Assets Liabilities Current Ratio

2006 492781012 865698811 0.569229166

2007 723792132 879549137 0.822912674

2008 771114543 865689624 0.890751745

2009 860626305 933395100 0.922038593

Interpretation

Current ratio was decreased in 2006. But after that it went in increasing upto2009. It shows that

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

2. Liquid Ratio:
Formula:
Current Assets-inventory-prepaid / Current Liabilities

Current Current Liquidity

Years Assets Liabilities Inventory Prepaid Ratio

2006 492781012 865698811 288276070 334185 0.23584502

2007 723792132 879549137 390031351 243788 0.37919086

2008 771114543 865689624 529345222 0 0.27927945

2009 860626305 933395100 513984170 0 0.37137771

Interpretation
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In 2007 and 2009 it is increased and decreased in 2006 and 2008. It means Master Industry can

meet its short term liabilities efficiently.

3. Capital Gearing Ratio:

Formula:
Long Term Debt / Equity + Long Term Debt

Equity+Long Term Capital Gearing

Years Long Term Debt Debt Ratio

2006 817430569 1285954219 0.635660708

2007 1018901325 1487424975 0.685010231

2008 1110502440 1579026090 0.703283148

2009 1075270250 1543793900 0.696511529

Interpretation

Capital gearing ratio is increased up till 2008 but in 2009 it is decreased. Overall thew position of the

company is satisfactory.

4. Fixed Assets Turn Over:

Formula:
Sales / Fixed Assets

Years Sales Fixed Assets Fixed Assets Turnover

 INTERNSHIP REPORT 26

2006 911397870 1694131874 0.537973392

2007 1068232571 1623257996 0.658079353

2008 1158489421 1549895068 0.747463131

2009 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.

5. Total Assets Turn Over:

Formula
Sales / Total Assets

Years Sales Total Assets Total Assets Turnover

2006 911397870 2228485097 0.408976426

2007 1068232571 2475191607 0.431575708

2008 1158489421 2630590695 0.440391363

2009 1578535476 2771444540 0.569571375

Interpretation:

Total assets turnover shows an increasing trend.

 Operating Ratio:
1. Operating Ratio:
Formula:
Cost of Goods Sold + Operating Expenses *100/ Net Sales
 INTERNSHIP REPORT 27

Cost of Goods
Sold+Operating
Years Net Sales Expenses Operating Ratio

2006 911397870 907709928 99.59535323

2007 1068232571 886870366 83.02221727

2008 1158489421 928431457 80.14155677

2009 1578535476 1323252169 83.82783847

Interpretation:

This ratio is directly linked with the sale of the organization. This ratio was high in 2006 but decreased in

2007, 2008 and 2009.

2. Operating Profit Ratio

Formula:
Operating Profit *100/ Net Sales

Years Net Sales Operating Profit Operating Profit Ratio

2006 911397870 3687942 0.404646765

2007 1068232571 181362205 16.97778273

2008 1158489421 230057964 19.85844323

2009 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 2006 it was low. In 2008 it is higher and

satisfactory in 2007 and 2008.

 INTERNSHIP REPORT 28

 Efficiency Ratios

1. Inventory Turn Over:

Formula:
Cost of Sales / Average Inventory

Years Cost of Sales Average Inventory Inventory Turnover Ratio

2006 843650401 139768991.5 6.036034116

2007 821993686 156252832.5 5.260664225

2008 867376231 217017832 3.996797051

2009 1242226125 261561421.5 4.749271196

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

decreasing but in 2009 it is showing increasing trend.

2. Inventory Turnover Days:

Formula:
Average Inventory *360/ Cost of Goods Sold

Years Cost of Sales Average Inventory*360 Inventory Turnover Days

2006 843650401 50316836940 59.64181002

2007 821993686 56251019700 68.43242309

2008 867376231 78126419520 90.0721241

 INTERNSHIP REPORT 29

2009 1242226125 94162111740 75.80110404

Interpretation
The lesser the days the favorable will be the position. This ratio in year 2006 and 2007 is

increased and then increased in 2008 by 22 days but after that it is again showing decreasing

trend in 2009.

 Leverage Ratio

1. Debt to Equity:
Formula:
Total Debt / Equity

Years Total Debt Equity Leverage Ratio

2006 1683129380 400000000 4.20782345

2007 1898450462 400000000 4.746126155

2008 1976192064 400000000 4.94048016

2009 2008665350 400000000 5.021663375

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

2. Debt to Total Assets:

Formula:
Total Debt / Total Assets

Years Total Debt Total Assets Debt To Total Assets

 INTERNSHIP REPORT 30

2006 1683129380 2228485097 0.755279621

2007 1898450462 2475191607 0.766991314

2008 1976192064 2630590695 0.7512351

2009 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 2007.

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
 INTERNSHIP REPORT 31

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

future planning.

MASTER TILES AND CERAMIC INDUSTRIES LIMITED

BALA
NCESHEET
AS ON DECEMBER 31

Rs.(000) Rs.(000)
2006 2007 2008 2009
ASSETS

Fixed Capital Expenditure

Tangible Fixed Assets 1694131 1623257 1549895 1896906

Capital Work in Progress _ 102950 291831 _
Deferred Cost 13009 11150 10312 8333
Long Term Loans & Advances 28563 14040 7437 5578
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TOTAL Fixed Assets 1735703 1751397 1859475 1910817

Current Assets

Store & Spares 95823 98502 70469 107006

Stock-in-Trade 288276 390031 529345 513984

Trade Debts 69896 98105 93734 170976

Advances, deposits & 33586 92100 36127 41406

prepayments

Cash and Bank Balances 5198 45052 41437 41437

TOTAL CURRENT ASSETS 492779 723790 771112 874809

GRAND TOTAL 2228482 2475187 2630587 2785626

MASTER TILES AND CERAMICS INDUSTRIES LIMITED

BALANCE SHEET
AS ON DECEMBER 31

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

2006 2007 2008 2009
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
 INTERNSHIP REPORT 33

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

1082000 1333415 1631534 1995403

GRAND TOTAL

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

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.
 INTERNSHIP REPORT 34

MASTER SANITARY FITTINGS INDUSTRIES LIMITED

GUJRANWALA
TRADING AND PROFIT & LOSS ACCOUNT
AS ON DECEMBER 31

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

2006 2007 2008 2009

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

 INTERNSHIP REPORT 35

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 45355 76741 154398 262779

sheet

Interpretation

Horizontal 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 2007 as

preceding years taking 2006 as base year. The horizontal analysis shows the endearment in

balance sheets and as well as rate of growth.

 INTERNSHIP REPORT 36

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.

 INTERNSHIP REPORT 37

MASTER SANITARY FITTINGS INDUSTRIES LIMITED

GUJRANWALA
TRADING AND PROFIT & LOSS ACCOUNT
AS ON DECEMBER 31

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

2006 2007 2008 2009

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 45355 76741 154398 262779

sheet
 INTERNSHIP REPORT 38

Interpretation

I did vertical analysis of Income Statements of Master industry. 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.

MARKETING STRATEGY

Master 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.
 INTERNSHIP REPORT 39

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 MASTER 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

Direct delivery system

In the direct delivery system direct sales to retailers.

Manufacturer Retailer Customers

s

Indirect delivery system

In the indirect delivery system, Company using the distribution network.

Manufacturer Distributor Retailer Customers

s
 INTERNSHIP REPORT 40

Customers Rights Protection Policy

Customers 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.

Major Competitors of the organization

Sr. no Local International

1 Super Asia China
2 Sonex Spain
3 Style UAE
4 Emco Italy
5 Karam

Success of the products

There are a lot of successful products in the market

Granite Tile:
 INTERNSHIP REPORT 41

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

different colours and designs.

Wall Tiles:

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

is also available in these tiles.

Sanitary:

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

distinctive designs and at affordable and competitive prices.

Poly Plastic

Master is also very efficient in poly plastic. They are making high quality plastic items in very

distinctive designs and at affordable and competitive prices.

Failure of different products

Some products are not successful up to that extent. But such a minor failure is not due to the

quality it is solely the matter of choice depending on colures and designs. Sometimes price

consciousness of people some products are being failed in the market.

Future Prospects of the Organization:

They are focusing on intensive promotion of sales. They are indulged in opening new

showrooms within the country and also outside the boundaries of countries. Company is looking

for expansion in business by opening new showrooms in Sindh and NWFP where they have no
 INTERNSHIP REPORT 42

dealer. A special dealership scheme is announced in Punjab for new as well as existing dealers.

This scheme includes monitory rewards for the dealers who meet the targets. In accordance with

instructions of Management of Master Industry Sale Department has opened a showroom in

Afghanistan. By opening a showroom in Afghanistan in comings days it would be easy to go

beyond the boundaries of Arab countries also.

The company is about to open new horizons by planning to open new showrooms in Maddle

East. In future, the company is working on installing for Plastic Foundry and at the same time

Company is also installing another manufacturing unit of automatic plant with complete range of

sanitary items. The drawback of manufacturer is that there is no availability of skilled labor in

the country to run as same capacity as required to get the maximum production.

OVERVIEW OF DEPARTMENTS WHERE I SERVED

INTERNSHIP

Number of employees working in the Department

I have worked in head office of master industry. Head office has controlling different
departments. I have worked in their departments. In head office 153 employees are working.

Functions and operations

I served my internship in the following departments.

 Income tax department

 Sales tax department

 Sales department

 Admin department

 Accounts and Finance department

 INTERNSHIP REPORT 43

 Import and Export department

In particular department I served my internship with following desks.

 Making income tax returns

 Making sales tax returns

 Working in account department

 Working in Import and export department

 Working in sales department

Short-falls

During my internship I observed that there are some loop holes in all departments that should be

improved with a view to provide valuable services resulting into the self enhancement of their

employees. I observe that in accounts department there are not clearly delegated responsibilities

to the employees. In this department people are not dead sure about their work. It creates some

problems in accounts departments. As far as in sales department very view employees working

in the department through this problem employees bearing lot of problems.

 INTERNSHIP REPORT 44

RESPONSIBILITY AS A STUDENT INTERN

I did my internship in Master industries. I have worked with the duration of six weeks.

First week report:-

WEEKLY PROGRESS REPORT

ID: 08117025 From: 26-07-10
Name: Muhammad Awais Rafique To: 31-07-10
Organization: Master Industry
Address: G.T Road, Gujranwala Week No.: - 1 -

Description
Mon

My First Day in MASTER INDUSTRY:

I gave interview to G.M of Master industry. He asked me some Questions about my

Qualification. He shared with me profile of master industry. I took a start with

intensive courage and learning.

 INTERNSHIP REPORT 45

Profile Review:

Establishment:

It was established in 1982 in Gujranwala. Sheikh Muhammad Tuffail was the owner

of the company. There are many dealers in Gujranwala, Islamabad, Faisalabad,

Multan, Karachi, Lahore, and other major city of Pakistan.

Introduction of directors of the company was given to me Monday. Company has

three Board of directors named as, Sheikh Mahmood Iqbal, Sheikh Muhammad

Asghar, and Sheikh Muhammad Akbar.

Company has different Management members and names of members are Mr.

Ghanzanfar mehmood (G.M of Master Tiles and Ceramics, FCA), Kashif Ashfaq

(Poly plastic G.M , C A), Amir basher, Iftikhar Ahmed (Department Manager) ,

ferhat Ali Akhtar (Production department manager), Atif Iqbal (Sales Manager),

Atif Riza Malik (Manager Advertisement) and Ammad Latif Upal (Project

Manager).

On Tuesday Mr. Nawaz gave me some tasks. He told me about the inventory

control System. He gave me a file and told me to find the different documents
Tue
related to inventory in the Stock room and as well as when out from the Stock room.

I separated these documents and then compared with computer generated lists.
Wed I continued previous work due to month end activities.
I visited Master Tiles and Ceramics Industry to see the production and to confirm

Thu that stocks are available physically in the stock room and matched with the Books

of stock.
Fri From this day I started my job in Tax Department, I collected the receipts and

payments of directors for tax Purpose. In this procedure I collected some supports
 INTERNSHIP REPORT 46

from Accounts department related to receipts and payments.

Sat It was the last day of this week and I worked in same department as on Friday.

Second week report:-

WEEKLY PROGRESS REPORT

ID: 08117025 From: 02-08-10
Name: Muhammad Awais Rafique To: 07-08-10
Organization: Master Industry (Master tiles & ceramics)
Address: G.T Road, Gujranwala Week No.: - 2 -

Description
I continued my Previous work. I came to know about different methods
Mon
involved in collection of tax receipts and payments .
I continued my previous work and it was my last day on this task. I have

Tue found Proximately 500-600 supports in a particular day. These supports were

related to Tax year-2011.

I started my work in accounts department and prepared different entries.
Wed
These entries were related to payments voucher.
I continued my work in accounts department. I came to know about sales
Thu
voucher and how to make entries electronically.
Fri I worked with sales tax department. I learned about what procedure a

company has achieved for sales tax rebate. If company’s exports are greater

than imports then government will provide the rebate to the particular

company. It is a good action from government because it will motivate

companies to launch more and more exports. I came to know the procedure
 INTERNSHIP REPORT 47

involved in online submitting of returns of sales tax.

It was the last day of this week. I visited the production area of master sanitary

fittings. I enjoyed the production of sanitary fittings products. I learned about

Sat
the recording of production of finished goods by electronically and manually.

I did some work in production department.

Third week report:-

WEEKLY PROGRESS REPORT

ID: 08117025 From: 09-08-10
Name: Muhammad Awais Rafique To: 14-08-10
Organization: Master Industry (Master tiles & ceramics)
Address: G.T Road, Gujranwala Week No.: - 3 -

Description
Mon

I worked with income tax department. Mr. Kashif gave me the book to read income

tax section 231. This section is related to deduction of advance income tax. In this

section, if a Cheque amount Greater then Rs.25000/- the bank will deduct the

Advance income tax in the favor of beneficiary. Mr. kashif said me, collecting these

Certificates from our banks of our Accounts. These certificates collected from

Gujranwala banks branch.

Procedure of Collection of Certificates of deduction of advance income tax:-

Step -1

I collected the details of deduction of advance income tax on Cheques of every bank

of company from account department.

 INTERNSHIP REPORT 48

Step - 2

The next step company developed authority latter in the favor of me. Company gave

me authority letter to collect the certificates of deduction of advance income tax from

banks.

Step – 3

I started my work on collection of certificates.

Tue I collected the certificates from three different banks
Wed I collected the certificates from four different banks.
Thu I collected the certificates from three different banks
On this day the weather was not good, so I worked in office. I collected the

supports of Purchase voucher of a month related year 2008. These are 350-400
Fri
Vouchers. These vouchers were attached in a file and provided to Mr. Rashid, he

managed the all vouchers of every type in accounts department.

Holiday,
Sat
14-August-2010, Independence day.
 INTERNSHIP REPORT 49

Fourth week report:-

WEEKLY PROGRESS REPORT

ID: 08117025 From: 16-08-10
Name: Muhammad Awais Rafique To: 21-08-10
Organization: Master Industry [(Master tiles & ceramics) & Sanitary fittimgs ]
Address: G.T Road, Gujranwala Week No.: - 4 -

Description
On this day I collected some authority letters from accounts department for

Mon taking advance Income Tax deduction certificates from banks. Today I

collected five certificates from different banks.

On this day I collected some authority letters of Master Sanitary Fittings Bank

accounts from Accounts department for taking Advance income Tax Deduction
Tue
certificates from different bank branches. I enjoyed doing this work because

that is very interesting work. I negotiated with banks on the deduction amount.
On this day I collected more Authority letters from accounts department for

giving Advance income tax deduction certificates from different banks

Wed
branches. That is very confidential work. I’m very thankful to Mr. Kashif who

assigned me that task.

It was the last day on taking Certificates from banks. Today I collected six

Thu certificates from different banks. Today when I reached the office Mr. Kashif

and Mr. Nawaz appreciated my work. I’m very happy today.

On this day I have started my work with good spirit. Today Mr. Amir gave

me some tasks. He said me please help to Mr. Rashidd who has handled all type

of vouchers. Mr. Rashid gave me Purchase Vouchers for the month of October,

2008.
Fri
There are 300 vouchers. Firstly I received these 300 manual purchase vouchers

and then found computer generated voucher slips and then matched these

vouchers in between. It’s very interesting work

 INTERNSHIP REPORT 50

It was last day of this week. I continued my previous work. I continued my

work in Accounts department. In this day Mr. Rashid gave me Purchase

Sat
voucher for the month of December, 2008. In this day I worked on 350

vouchers.

Fifth week report:-

WEEKLY PROGRESS REPORT

ID: 08117025 From: 23-08-10
Name: Muhammad Awais Rafique To: 28-08-10
Organization: Master Industry [Head office]
Address: G.T Road, Gujranwala Week No.: - 5 -
 INTERNSHIP REPORT 51

Description
On this day Mr. Kashif told me Audit committee coming after 3-4 months for audit

purpose. He rotated me to sales department and to help Mr. Umer who is head of Sales
Mon
department. In this department I verified the sales documents compared with computer

generated sales documents. I verified 400 entries related to the month of February, 2010.
On this day Mr. Umer gave me the Sales documents files for the month of march, 2010.

Tue I verified the Sales manual entries with the computer generated entries files. Today I

verified 376 entries of sales.

On this day Mr. Umer gave me manual sales documents for the month of April, 2010.

But at this time the computer generated files were not ready. Mr. umer told me I think our
We
d Software very easy to use. You can easily use this software. He told me the procedure of

giving Computer generated slips from computer. I understand everything of company

software. Then I took print out of sales slips of related month. I verified 300 entries.
On this day Mr. Umer gave me another task in sales department. He told me today we

will work on Sales tax return. Firstly we found the Sales tax return from Accounts

department. Then found the total sales related to the particular month by using the
Thu
company software. Then verified the Sales amounts of related month as well sales tax.

That is very confidential work. But I very thank full to Mr. Umer who has gave me that

type of knowledge.
On this day Mr. Nawaz gave me a very important task. I think that task very secret on an

Organization but I very thankful to Mr. Nawaz who assigned me this task. He told me you

prepared salary sheets. In this day I started our work from employees. I went to sanitary
Fri
fittings factory and took employees cards. In this day I finalized which number of

employees has overtime.

It was last day of this week I again started our work on making salary sheets. Today I
Sat
finalized the salary sheets of 75 employees.
 INTERNSHIP REPORT 52

Sixth week report:-

WEEKLY PROGRESS REPORT

ID: 08117025 From: 27-09-10
Name: Muhammad Awais Rafique To: 02-10-10
Organization: Master Industry [Head office]
Address: G.T Road, Gujranwala Week No.: - 6 -

Description
Mon On this day I rejoined my internship after completion of taught component held in

university.

Today my first work was I met to every person who has related my department. I told
 INTERNSHIP REPORT 53

to Mr. Nawaz can I help you in your any work. He asked me about my

accomplishments up till now. He asked me to start work from making salary sheets. I

went to Admin department of sanitary fittings and took cards of employees. I again

started my work from making salary sheets. I checked the working days of employees.

If an employee have Rs.12000/- salary. so

Total salary = Gross salary (Basic salary + House rent + Utility allowance +

Attendance allowance + over time + other allowances) - Deductions (Against

salary + Short term loan + EOB).

I was using this formula for making salary sheets as per instructions. I prepared 20%

salary sheets on this day.

On this day I again started my work from making salary sheets. Today I prepared

Tue 25% - 30% salary sheets. I got more knowledge in this regard and increased my

learning.
On this day I covered remaining work of salary sheets. I took prints of salary sheets.
We
d I gave these salary sheets to Mr. Nawaz. He checked these sheets and pointed out my

small mistakes and also encouraged to me.

On this day I told to Mr. Nawaz sir I want to work in IMPORT & EXPORT

department. I’m very thankful to Mr.Nawaz he gave me permission to explore a move

to Import & export department. I met to Mr. Shahbaz who is head of this department.

Thu Today Mr. Shahbaz told me about the procedure of export. I came to know about the

documents required for export and types of exports. I learnt the procedure of opening

LC (letter of Credit) and documentation involved in opening LC. He shared with me

some past export documents related to Afghanistan.

Fri On this day I started my work in Import & export department. Mr. Shahbaz was
 INTERNSHIP REPORT 54

doing work on some export orders related to Afghanistan. I said to Mr. Shahbaz can I

helped you in your work. He smiled and said yes sure why not. Company is trading

with Afghanistan on advance basis. Firstly I verified TT (Advance amount received

from party or not). Export form. Certificate of origin collected from chamber.

Attached insurance documents if any. If Export on partially basis. Then required

invoices, packaging and other documents. Then sent those details to importer party.

In the E-form SBP must be involved. E-form has 4 copies. Original sent to Custom and

duplicate sent to bank and triplicate sent to importer and fourth copy in the custody of

exporter.
Sat It was last day of this week as well as last day of my internship. I again started my

work in Export and import department. I came to know the process of imports. Today

Mr. shahbaz shared with me import procedure. I learned a lot from Export and import

department. Today I completed my work in this department and I said thanks to Mr.

Shahbaz and he also said to me nice to meet you. He was very happy from me. I’m

very thankful to Mr. shahbaz who gave me knowledge about Export & Import

procedure. I returned to my office and very happy. I went to account office and saw the

work of Mr. Barkaat who was doing the work of accounts department. At that time he

made new cash memo paper on MS excel. During the making he faced some problem

and said to me awais can you solve this problem. I said yes sir why not. Other member

of department said he cannot solve the problem. But I solved that problem and every

member of department clapped for me. I was very happy today. And Mr. Barkaat said

to me GIFT University is very good and teachers are very intelligent. I was very happy

when these words listen. I said yes sir.

Today my last day in Master Industry Head office. I met to everybody who has given
 INTERNSHIP REPORT 55

me knowledge. Salaam to Master Industry.

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

are achieved. During my internship at Master Industry 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 career

The Internship was an opportunity for me to observe a small practical field i.e. Master Industry.

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.

 INTERNSHIP REPORT 56

CONCLUSIONS & RECOMMENDATIONS FOR

IMPROVEMENT
MASTER Industry has superior look on his product as competitor in the market. MASTER

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.

Master industry has providing well quality products. Structure of master industry has well

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

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

accounts department, admin department, production department and human resources

department.
 INTERNSHIP REPORT 57

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 Master Industry's financial

position. Master 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 Master

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 Master Industry has bright future. Master has big market share locally as well as

internationally.

REFERECES AND SOURCES

Mr. Ghazanfar Mehmood, “General Manager : Master ceramics & tiles ” , 2010

Mr. Kashif, “General Manager : Master poly plastic ” , 2010

Mr. Amir, “General Manager : Master Sanitary fittings ” , 2010

Mr. Nawaz, “Accountant officer : sales tax department ”, 2010

Mr. Rashid, “Accountant : sales department ”, 2010

Mr. Umer, “Head of department : sales department ”, 2010

Mr. Shahbaz, “Head of department : Import & Export”, 2010

Mr. Rehan, “Head of deparment : Human Resource”, 2010

Web sources

www.mastertiles.com
 INTERNSHIP REPORT 58

www.google.com

www.scribd.com

www.yahoo.com

ANNEXURE
ABBREVIATIONS

1. CRPP Customers Rights Protection Policy

2. CO Company
3. CEO Chief Executive Officer
4. GM General Manager
5. FCA Fellow Chartered Accountant
6. IT Information Technology
INTERNSHIP REPORT 59