Yasin Elmi Import Company Profile - Final

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Yassin Elmi General

Trading
***Vehicles, Construction materials, equipment and
Machineries Importer and Supplier

COMPANY
PROFILE

Address:
Kebele 03, Biftu Building
First Floor, Room No. 106
Dire Dawa City, Ethiopia
Tel (mob.): +251-915-320-933

February 2021
Dire Dawa

Contents
Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

Company Summary..............................................................................3

Objectives...........................................................................................3

Keys to Success...................................................................................4

Company Information...........................................................................4

Profile of the Owner/General Manager.....................................................5

Existing Asset Value.............................................................................5

Table: Existing value of assets...............................................................5

Annual Turn over.................................................................................6

SWOT Analysis....................................................................................6

Strength........................................................................................6

Weakness......................................................................................7

Opportunities.................................................................................7

Threat...........................................................................................7

Company Ownership.............................................................................7

Services..............................................................................................7

Products.............................................................................................8

Management Philosophy......................................................................12

Human Resource Management.............................................................12

Customer Satisfaction.........................................................................12

Sustainability Management..................................................................12

Company Structure............................................................................13

Financial Statements..........................................................................14

ANNEX 1: SUMMARY OF MAJOR ACCOUNTING POLICIES AND PRACTICES OF


YASSIN ELMI GENERAL TRADING.........................................................18

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

ANNEX 2: SUMMARY OF HUMAN RESOURCE POLICY & PROCEDURE OF


YASSIN ELMI GENERAL TRADING.........................................................21

ANNEX 3: SUMMARY OF MATERIALS MANAGEMENT PROCEDURE OF YASSIN


ELMI GENERAL TRADING.....................................................................28

Company Summary
Yassin Elmi General Trading Company is established with an objective of
importing and supplying of construction materials and equipment for
Ethiopian Market.

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

The Company is solely owned by Mr. Yassin Elmi Issak and is registered in
Dire Dawa City as per the Ethiopian Business Law.

Company Vision

To be quality construction materials and equipment supplier with pride on


consistently offering HIGH QUALITY, COMPETITIVE PRICES and EXPEDIENT
SERVICES to customer demand with the capacity to meet and exceed their
expectation.

Company Mission

The Company plans to continue to expand business prospects via


exceptional client relation, marketing, shipping, logistics and Finance
Practices. Our mission is therefore to be a leading construction materials and
equipment suppliers in Eastern Africa region with growing market share by
investing on people, machineries, technologies, systems and procedures that
will increase productivity and improve quality.

Objectives
Yassin Elmi General Trading plans to:

 Significantly expand to improve profit margins and increase local


market share.
 Expand services and decrease costs by creating a permanent crew,
 Begin to market and offer services in neighboring countries as part of
our internationalization strategy

Keys to Success

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

The local commercial construction market is booming at the moment. In


order to achieve a defendable position in this environment, Yassin Elmi
General Trading must concentrate on the following tasks.

 Secure at least five large scale commercial contracts over the


next three years.
 Expand our customer base through expansion into other geographic
areas to retain a sufficient level of profitability.

Company Information

Yassin Elmi General Trading was established as a Sole Proprietor


Company in January 2011 EC, with a paid up capital of ETB 10,000,000, in
accordance with the commercial code of Ethiopia.

The Company’s address is located at Dire Dawa City. Mr. Yassin Elmi, the
owner of the Company, has adequate experience and technical reputation in
the construction materials import and supply industry.
Name of the enterprise: Yassin Elmi General Trading
Business Type: import and supply of Construction materials &
equipment
Year of establishment: January, 2011 EC
Location: Dire Dawa City

The Enterprise has been registered with the ministry of trade and industry of
the Federal Democratic Republic of Ethiopia.

As per the financial statement for the years 2011 and 2012 EC, the business
has generated good profit.

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

Profile of the Owner/General Manager

Name: Yassin Elmi Issak


Address: Region/City- Dire Dawa
Telephone Number (Mob): +251-915-320-933

Mr. Yassin Elmi, the owner/general manager of the Enterprise has got more
than 10 years’ experience in managing private businesses in the
construction and import sector.

During his business years, Mr. Yassin has acquired smooth business
transaction practices with different financial institutions such as, Commercial
Bank of Ethiopia, Awash Bank and Oromia Cooperative Banks.

Existing Asset Value


The currently overall existing asset values of Yassin Elmi General Trading
amounts to Birr 18,819,957.88.

Table: Existing value of assets


Description Value , Birr Total Value, Birr
Current Assets
Cash 3,631,060.00
Inventory 6,045,965.48

Total Current Assets 9,677,025.48

Property and Equipment 1,833,813.78


Building 8,325,000.00
Acc. Depre-Building (1,015,881.38)

Total Property and 9,142,932.40


Equipment

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

Total Assets 18,819,957.88

Annual Turn over


As per the audited financial statements of the Company for the past two
years, he average annual turnover of the company amounts to ETB:
52,599,893.38.

Table: Average annual turnover

Year Value, Birr


2011 EC ETB 48,479,164.40
2012 EC ETB 56,720,622.36
Average ETB 52,599,893.38

SWOT Analysis
Strength

 Experience in the construction materials and equipment import sector


 Having adequate storage facilities for our imported materials and
equipment
 Professional team
 Good will and huge customer base in our local market area

Weakness

 Lack for foreign currency for import

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

Opportunities

 The construction sector in booming in our country and in the


neighboring regions
 Access to capital for machineries purchase and expansion
 Government incentive including tax exemption for purchasing
machineries
 HUGE Work force in the market to supply our company needs
 Plenty of room to expand & grow in reasonably short time

Threat

 New companies entering the market may induce competition

Company Ownership

Yassin Elmi General Trading is a Sole Proprietor Company registered in Dire


Dawa City, Ethiopia. The Company is exclusively owned by Mr. Yassin Elmi
Issak.

Services

Yassin Elmi General Trading is now becoming one of the Leading Trading
Companies in the Country when it comes to the supply and Import of
Various construction materials and equipment that include: Metals,
Fasteners, Consumables, Hardware, Tools, Construction Materials and
different Accessories, construction machineries etc…

We are specialized to supply project specific and design specification based


material for Mechanical, Electrical, Plumbing and Civil Industry. We carry
wide range of quality materials to meet industry requirements. We pride

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

ourselves on consistently offering for Projects in Roads and Building


Construction.

Products

Industrial Supplies

Valves, Flanges, Pipes and Pipes Fittings (CS/SS/MS/GI), Bulk Chemicals, Hydraulic
Hoses & Fittings, Forged Fittings, Flow Meter, Pressure Measurement instruments,
Power tools, Containers, Drilling tools, Precision Machining items, Gaskets, Pumps,
Temperature Measurement instruments, Level Measurement instruments, Drill bits,
Drill collars, Wellheads, Diesel Generators , Batteries, Battery chargers.

Metals

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

Galvanized pipes, Ms-Pipes, Square hollow sections, rectangular hollow sections,


Hot rolled coils/Sheets/plates, Mild Steel Cheqeured sheets ,Cold Rolled
Coils/Sheets, Galvanized steel coils/sheets, Aluminum plain sheets, Carbon steel,
Stainless steel sheets, Stainless pipes/Tubes, etc…

Road Construction machineries

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

Graders, rollers, cranes, mixers, forklifts and asphalt mix plants

Welding & cutting equipment

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Welding Machines, Welding Consumables, Welding safety items, Plasma Cutting


Machine, Oxy Plasma Profile Cutting Machine, Abrasive Jet Cutting Machine,
Thermal Spray, Welding Torches & Accessories, Welding Automation, Pipe Cutting &
Beveling, Diesel Welder , Power Generator, etc…

Management Philosophy
The mission of human resource department in the company is to assist the
entire company community by developing and interpreting human resource

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policies and strategies and providing timely and accurate information and
prompt service on human resource issues.

The main areas of service include records management systems, hiring and
staffing functions, benefit administration, employee relation, grievance
handling, organizational diversity and cultural awareness initiatives.

Human Resource Management


Believes That the Future of our organization depends on the attitude and
competence of each member, perseverance, self-development, and create a
corporate culture of respect for talent goes.

Customer Satisfaction
We ensure that our company renders best satisfactory of our clients with
high value on competitive fields.

Our company ensures that clients demand will be guaranteed with best
quality and services we provide.

Sustainability Management
We can only be realized in harmony with the balance of responsibility for
economic, environment and social companies in order to grow continuously.
The company is planning to expand its personnel to add a number of job
superintendents as soon as the number of projects increases. These
superintendents will have the following duties:

 Direct supervision of all work at the job site.


 Quality control.
 Scheduling subcontractors and material deliveries.
 Verifying and insuring that all work is done in accordance with plans.

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 Insuring that all work is performed in accordance with all the Country
requirements and guidelines.

In addition, as business increases, we will hire additional job


superintendents and project managers as needed.

Company Structure

Financial Statements
Yassin Elmi General Trading

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Income Statement
As of July 30, 2019

Revenues
Sales ETB 48,479,164.40
Total Revenues 48,479,164.40

Cost of Sales
Beginning Inventory 3,041,273.22
Add: Purchases 38,275,145.80
Cost of Goods Available For Sale 41,316,419.02
Ending Inventory 7,381,003.94
Cost of Goods Sold 33,935,415.08

Total Cost of Sales 33,935,415.08

Gross Profit 14,543,749.32

Expenses
Salary & Wages 1,234,548.00
Transportation Expenses 2,617,262.00
Loading & Unloading 1,181,232.62
Utilities Expenses 832,235.22
Miscellaneous Expenses 1,613,128.00
Depreciation Expenses 1,757,500.00

Total Expenses 9,235,905.84

Net Profit Before Tax ETB 5,307,843.48

Yassin Elmi General Trading


Balance Sheet
As at July 30, 2019

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ASSETS

Current Assets
Cash ETB 2,904,848.00
Inventory 5,092,892.72

Total Current Assets 7,997,740.72

Property and Equipment 2,037,570.86


Warehouse 9,250,000.00
Acc.Depre-Building (1,128,757.09)

Total Property and Equipment 10,158,813.78

Total Other Assets 0.00

Total Assets ETB 18,156,554.49

LIABILITIES AND CAPITAL

Current Liabilities

Long-Term Liabilities

Total Long-Term Liabilities 0.00

Total Liabilities 0.00

Capital
Owner's Equity ETB 14,441,064.06
Retained Earnings 3,715,490.44
Total Capital 18,156,554.49

Total Liabilities & Capital ETB 18,156,554.49

Yassin Elmi General Trading


Income Statement
As of July 30, 2020
Revenues

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Sales ETB 56,720,622.36


Total Revenues 56,720,622.36

Cost of Sales
Beginning Inventory 7,381,003.94
Add: Purchases 42,149,126.80
Cost of Goods Available For Sale 49,530,130.74
Ending Inventory 9,825,695.08
Cost of Goods Sold 39,704,435.65

Total Cost of Sales 39,704,435.65

Gross Profit 17,016,186.71

Expenses
Salary & Wages 1,341,900.00
Transportation Expenses 2,844,850.00
Loading & Unloading 1,283,948.50
Utilities Expenses 904,603.50
Miscellaneous Expenses 1,753,400.00
Depreciation Expenses 1,669,625.00

Total Expenses 9,798,327.00

Net Profit Before Tax ETB 7,217,859.71

Yassin Elmi General Trading


Balance Sheet
As at July 30, 2020
ASSETS

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Current Assets
Cash ETB 3,631,060.00
Inventory 6,045,965.48

Total Current Assets 9,677,025.48

Property and Equipment 1,833,813.78


Building 8,325,000.00
Acc.Depre-Building (1,015,881.38)

Total Property and Equipment 9,142,932.40

Total Other Assets 0.00

Total Assets ETB 18,819,957.88

LIABILITIES AND CAPITAL

Current Liabilities

Long-Term Liabilities

Total Long-Term Liabilities 0.00

Total Liabilities 0.00

Capital
Owner's Equity ETB 13,512,114.40
Retained Earnings 5,307,843.48

Total Capital 18,819,957.88

Total Liabilities & Capital ETB 18,819,957.88

ANNEX 1: SUMMARY OF MAJOR ACCOUNTING POLICIES AND


PRACTICES OF YASSIN ELMI GENERAL TRADING
1.1 General Policies

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The Accounting policies and practices of the company follow the


Generally Accepted Accounting Principles and it is being reported as
per the International Financial Reporting Standards, the commercial
code of Ethiopia, financial & tax laws of the country, other pertinent
laws and the Company constitution.
1.2 Recording Technique
The bookkeeping process of the company is based on double- entry
system of recording financial transactions in that each transaction, no
matter how simple or complex it might be, is analysed in terms of its
dual effect. Viz, Debit and Credit.
1.3 Fiscal year
The financial year of the company starts from 1 stHamle (8July) and
ends at 30thSene (July 7) of the following year.
1.4 Basis of Accounting
The basis of accounting for the company is Accrual basis of accounting.
Accordingly revenue is recognized when it is realized and prudently
expected that economic benefits of sales transaction will flow to the
company. Expenses are recognized in the period in which the related
liabilities are incurred whether for acquisition of fixed assets, purchase
of supplies, payment for utilities and salaries and so on.

1.5 Cost Principle


Cost is the base for all accounting entries. Acquisition of goods and
services are recorded in the books at the actual amount paid to bring
the goods to their present location and condition.
1.6 Centralized System of Accounting
The Company’s transactions are processed at the Head Office in Dire
Dawa City. In order to facilitate the presentation of consolidated
report, it has been decided to adhere Centralized System of
Accounting.

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1.7 Objective Principle

Accounting entries or records should be based on verifiable evidences,


i.e. properly authorized vouchers and source documents.

1.8 Provision for bad and doubtful accounts

The company make assessments of each receivable balance every year


in terms of their age and collectability and make provision for doubt
full accounts.

1.9 Stock and valuation

Work in process of YASSIN ELMI GENERAL TRADING is stated at


Production cost; Whereas Raw materials, spare parts, packing
materials and other consumable materials are stated at the moving
average basis.

1.10 Depreciation

Definition

Depreciation is the systematic allocation of the depreciable amount of


an asset over its useful life.

The company has the following depreciation policy applicable


consistently over the years:

Fixed assets are stated at cost less accumulated depreciation, except


depreciation on Building which is on a straight line basis.
Depreciation on all assets of the company is charged on the reducing
balance of each pool of fixed assets, in accordance with proclamation
286/2002.

1.11 Consistency Principle

The accounting policies and procedures stated in this manual should


be applied consistently from period to period to provide comparability
among the financial statements of different accounting periods.
However, changes in accounting policies may be made only when the

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proposed change is supported by valid reason and approved by the


Managing Director/ General Manager of the company.

ANNEX 2: SUMMARY OF HUMAN RESOURCE POLICY & PROCEDURE


OF YASSIN ELMI GENERAL TRADING

2.1. Introduction

Comprehensive well organized and complete human resource policy and


procedure manual is an invaluable and crucial management tool for problem

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solving and structured decision making in matters pertaining to human


resource issues and activities for any organization. It serves as a
systematized decision making guide line by enabling the decision maker
made any human resource related decision uniformly, promptly, equitably
and fairly across all organization echelon.

It paves the way for impartial and unbiased implementation of human


resource related decisions and functions by avoiding any possible
discrimination. The manual establishes a mutual understanding, trust and
smooth relationship between employees and company management without
which desired success and sustainable development of any organization is
unthinkable.

It also plays a great role in creating team spirit, sense of belongingness and
high commitment among staff members by enabling them to be formed
what is expected of them and their respective rights in clear and transparent
manner.

In broadest sense, this policy and procedure manual besides making the
company HR decision making activity standardized, structured and fair, will
also help to improve the long run performance and competitiveness of the
company in market driven strategy since a well-managed and motivated
human resource is the most critical factor towards that end.

Consequently, to make the best use of the above mentioned advantages,


Yassin Elmi General Trading engaged a consulting firm to prepare a set of
comprehensive and standardized Human Resource Policy and Procedure
Manual that serves as a guideline in all Human Resource Management issues
and functions.

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This Human Resource Policy and Procedure Manual was prepared using a
standard proto type by closely adhering and understanding the real need
and specific nature of the company. Emphasis was placed on gaining useful
information on the current company practices and operation in respect to
human resource management by reviewing the limitations and gaps of the
existing HR Policy of the Company as well as by discussing with concerned
personnel and management members in a consecutive joint meeting.

2.2 Human Resource Philosophy of the Company

Yassin Elmi General Trading recognizes the contributions of its employees and
treats each individual employee fairly and consistently in all matters, with a
uniform application of the following human resource philosophies.

a) Company human resources are best allocated to achieve optimum


productivity and efficiency.

b) Pay and benefits offer shall be fair, equitable and competitive.

c) Employees are always encouraged to well-equip themselves for the


present job and future development.

d) Reward is based on merit and achievement. High performers are


given priority to take up more responsible positions.

e) Two way communications b/n employees and the management


shall be always promoted as a means of building mutual
understanding and trust.

f) Work place safety and conducive working environment is given top


priority to protect human health and enable employees to deliver
their best performance.

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g) Employees are encouraged to work collaboratively as a team to


support each other’s effort in a reliable and respectful manner in
achieving both individual and company goals.

2.6. Rights and Obligations of the Company


2.6.1.Exclusive right of the company
2.6.1.1. To plan organize direct supervise and control the overall
operations and activities of its work units.
2.6.1.2. To enact and implement polices regulations directives and
procedures that enables the smooth running of its operations.
2.6.1.3. To restructure, revise amend and change the organization
structure and working procedure as deemed necessary
2.6.1.4. To determine remuneration, allowance benefit packages and
other employee perks for its staffs.
2.6.1.5. To manage and determine the location, type and number of
physical facilities, equipment, programs and the work to be
performed.
2.6.1.6. To determine goals, objectives, programs and to utilize
personnel to effectively meet these purposes.

2.6.1.7. To determine and modify the hours of work and work


schedules required to operate most efficiently.

2.6.1.8. To recruit, promote, demote, transfer, evaluate, lay off,


suspend terminate and penalize its employees in
accordance with the country’s pertinent law and this policy
and procedure manual.

2.6.1.9. To modify, alter and re-engineer its working methods and


procedures as deemed necessary with the consequence of
either downsizing or enlarging the scope of its operation.

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2.6.1.10. To guide, supervise and control its employees


ensuring that they are discharging their duties and
responsibilities effectively and efficiently as expected.

2.6.1.11. To exercise any and all other functions deemed


necessary by management.

2.7. Obligations of the Company

The company shall have the following obligations:

2.7.1. To prepare and sign written contract agreement in which major


duties and responsibilities of workers are stipulated.

2.7.2. To provide work to its employees in accordance with the contract


of employment.

2.7.3. To pay salary, allowances and other benefits in accordance with


the contract agreement and this manual.

2.7.4. To provide the necessary materials tools and facilities to its


employees that is required for the proper performance of their
duties.

2.7.5. To take all the necessary pre-caution and measure to prevent


any possible occupational hazard and disease in the work place.

2.7.6. To train and orient its employees on the proper utilization of


protective devices observation of safety rules and handling of
machines and equipment.

2.7.7. To prepare and provide job description for each job holder upon
assignment.

2.7.8. To up keep and maintain important and necessary records in the


personal file of its employees.

2.7.9. To respect the human dignities of its employees as prescribed by


law.

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2.7.10. To issue and provide work certificate to its employees free


of charge upon termination of employment contract or whenever
the worker so requests.

2.7.11. Refrain itself from taking arbitrary disciplinary action that


contravenes with law and this policy and procedure manual.

2.7.12. To arrange appropriate insurance coverage for its


employees for work related accidents and occupational hazards.

2.7.13. To refrain from making any discrimination between its


employees based on race, religion, sex, political affiliation etc

2.7.14. To inform and keep informing its employees on regular


bases about the company’s HR Policy regulation, directive and
other relevant laws as deemed necessary.

2.8. The rights of company employees


2.8.1. To be treated equally and fairly in accordance with the law
and this manual.
2.8.2. To appeal and submit a grievance to the concerned
authority for review of disciplinary action.
2.8.3. To get remuneration for the work done and other benefits
in accordance with employment contract and work result.
2.8.4. To apply and compete for promotion in non-management
vacant posts that the company advertizes.
2.9. Employees Obligation
The fundamental obligation of the company’s employee is to contribute
his part to the full attainment of the company objective by exerting
unreserved mental and physical effort.
Accordingly, all company staff members are expected to observe the
following obligations
2.9.1. Perform in person the work and duties assigned based on
the contract of employment.

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2.9.2. To observe company rules, regulations, policies and


directives and follow work instructions.
2.9.3. To handle with due care all working materials, instruments
and tools entrusted to him.
2.9.4. Report for work regularly as per-determined working hours
in fit mental and physical conditions.
2.9.5. Refraining from either intentional or reckless acts that
endanger himself, company property and other third party.
2.9.6. Avail himself for assistance and give information to
concerned authority when an accident occurs or when an
imminent danger that threatens life and property occurs in the
place of work.
2.9.7. Refrain from performing any personal work while on duty
during company working hours.
2.9.8. Strictly observe safety rules and wear company uniforms
and other protective devices while on duty.
2.9.9. Protect and safeguard the company’s interest by refraining
himself from any acts that hamper the good will and image of
the company at any time and place.
2.9.10. Accept transfer and assignment as and when deemed
necessary.
2.9.11. Give a due respect and treat the company’s customer
properly in decent and polite manner.
2.9.12. Provide any personal information and relevant records as
deemed necessary for up keeping company employee data and
profile.
2.9.13. Keep and maintain company confidential matters in secret
that he accessed due to the nature of the job even after the
termination of the employment contract.

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YASSIN ELMI GENERAL TRADING


2.10. Recruitment and Selection Process flow Chart

Creation of Vacancy

HR/ Manpower Request

No
Review and Approval of
HR Request

Yes
Vacancy announcement

Registration

Screening & short listing

Interview or testing

Selection

No
Recruitment committee
proposal
Yes
Pre-employment
formalities

Employment contract

Orientation/induction
ANNEX 3: SUMMARY OF MATERIALS MANAGEMENT PROCEDURE OF
YASSIN ELMI GENERAL TRADING
3.1. Stores Administration

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All stores/warehouses and satellite stores shall be assigned and identified


by numeric or alphanumeric system.

Stock room shall be suitable and wide enough to accommodate receiving,


issuing, shipping and storage of parts in their proper places.

Stock room shall have wide isles for moving and screening
goods/materials by stores personnel,

The stock room shall be an area easily accessible for loading and
unloading of goods/materials

Stock rooms shall always be maintained clean and locked. No outsider is


allowed into stock room unless authorized.

Food and leftover dish are not allowed in the stock room
3.2. Objectives of Stores Administration

Stores Administration have the following objectives:

a. to make items available for smooth operation of the factory and


other supporting activities;

b. to handle the properties of the company properly by safeguarding


from breakage, deterioration, obsolescence theft and hazard;

c. to organize and manage the stores in systematic and efficient


manner;

3.3. Organizing Stores

3.3.1. While using the existing stores or constructing (acquiring)


a new store the following points shall be considered:
3.3.2. The stores shall be as near as possible to the users work
place.
3.3.3. The stores shall have suitable doors and corridors (aisles)
for loading and unloading of items.
3.3.4. Stores should have fire extinguishers in proper place for in
case of emergency;

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3.3.5. The store shall be big and suitable enough to hold and
accommodate the items to be stored and avoid could and mix up
for easy inventory;
3.3.6. The store shall have enough light and ventilation of stored
items;
3.3.7. The store shall have adequate Dixon shelves in order to
stock and arrange items neatly;
3.4. Types of Stores
3.4.1. Closed store: - This is a store having walls and ceiling and
it is used for indoor storage or silos.
3.4.2. Indoor stores: - There are several types of indoor store
which serve for different purposes.

a) General purpose storage: - Items used to be stored in


general stores require to be protected from sun, dust, rain …
etc.

The types of items can be stationery, sanitary, electrical


materials, and spare parts. . . etc.;

b) Dark storage:- Items that should not be exposed to sunlight


are to be stored in dark storage. This items can be various
kinds of films and chemicals;

Hazardous goods storage: Items that can catch fire easily


shall be stored in hazardous goods storage. The items can be
in the form of solid, liquid or gas.

c) Mezzanine storage: - This kind of store is used to be


constructed between the floor and the ceiling to store items
which have light weight. The mezzanine will have a stair case.

d) Bulk storage:- This kind of store can be divided into:-

- liquid bulk store- for fuel & oil to be stored in tankers

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

- Solid bulk store- for items to be stored in silos.

e) Open shed storage: - This kind of store has only the ceiling
to protect items from sun and rain. The items to be stored in
such kinds of places are supposed to be not easily stolen.

f) Stock yard:- Items that do not require special care and that
cannot be damaged from sunlight or rain are used to be
stored in stock yard. The items can be like sand, stone,
gravel, hollow block … etc. stock yard has fence that would
enable the proper guarding of the items.

3.5. RECEIVING STORE

o Receiving store is a concerned store that receives all incoming


materials needed for production line and for other support process
against proper documents and conducts the necessary incoming
inspection. For verification of critical items, the concerned store fills
test requisition form with relevant information and submits the
application together with other documents to Quality control after it is
dully signed by the requesting function.

o Upon receipt of incoming shipments from purchasing work unit , the


receiving store shall check that the boxes (packages) parcels etc. are
sealed and intact and shall sign on the delivery note for receipt.

o The receiving store shall check the description, part number,


specification, physical condition, quantity etc. of the consignment
against the PR, the purchase order, supplier's invoice and packing list
etc. for all goods/ materials received from purchasing work unit and
suppliers etc..

o After inspection and acceptance of the goods /materials by the


concerned store the store shall issue goods receiving note for the

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

actual goods/materials received. The concerned store shall document


and communicate the deficiency observed.

3.6. The GRN shall be distributed as follows: -

o Original -General account /Finance

o First Copy -Procurement

o Second Copy -Store

o Third copy -Pad

o For goods/materials, short received, damaged or not meeting the


specification, inspection/discrepancy report shall be raised by the
concerned store and checked and approved by the Supply & Facility
Management Department Manager

o The inspection /discrepancy report shall be distributed to purchasing,


Quality, stores and Finance.

o Goods/materials received and inspected shall be delivered to the


concerned stores in case of stock items or to the concerned
departments/divisions in case of non-stock items.

3.7. STOCK ARRANGEMENT

a. Shelves: - are constructed vertically & horizontally from Dixon angles,


items like spare parts, motors, pips, fittings . . . etc. Heavier materials
are used to be placed at lower level and light items at the higher levels
in the shelf.

b. Bins: - are small boxes made up of timber or steel for storing small
items like bolts and nuts.

Binning goods / materials

The concerned stores shall check the description, part number,


specification, physical condition, quantity etc. against the goods
receiving note (GRN)

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Company Profile for Yassin Elmi General Trading Dire Dawa, 2021

The concerned stores bin the goods/materials on the respective


shelves/ designated location to facilitate issuance on first in first out
(FIFO) basis

The stores clerk shall indicate on the bin location card the location of
goods/ materials received and binned. (It can be computerized after
effective manual system is established)

The concerned stores shall initial the GRN for receipt and binning of
the goods/ materials and files it for future reference as per the record
control system of the company.

c. Pallets: - are flat plate forms made up of timber or metal to place


items slightly above the ground. Pallets enable the items easily to be
moved from one place to another by forklift.

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