SUBMITTED TO:

MAAM NAINTARA SARFARAZ

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Table of Contents
ABSTRACT .................................................................................................................................................. 2
INTRODUCTION: ....................................................................................................................................... 3
ASKARI CEMENT LTD WAH: .............................................................................................................. 3
ASKARI CEMENT NIZAMPUR: ........................................................................................................... 3
DISTINGUISHING FEATURES OF ASKARI CEMENT:..................................................................... 4
QUALITY ............................................................................................................................................. 4
QUANTITY: ......................................................................................................................................... 4
PROMPT SERVICE: ............................................................................................................................ 4
FLEXIBILITY ...................................................................................................................................... 4
AVAILABILITY: ................................................................................................................................. 4
ECONOMY .......................................................................................................................................... 4
ASSOCIATIONS ...................................................................................................................................... 4
EXPORTS ................................................................................................................................................. 4
LEARNING AND EXPERIENCE: .............................................................................................................. 5
GENERAL ACCOUNTING: ................................................................................................................... 5
COSTING ................................................................................................................................................. 6
CEMENT PRODUCTION PROCESS: ................................................................................................ 6
BUDGETING ........................................................................................................................................... 8
SALES ACCOUNTING: .......................................................................................................................... 9
TYPES OF BUYERS: .......................................................................................................................... 9
ENTRIES ............................................................................................................................................ 10
PAYABLE ACCOUNTING: .................................................................................................................. 10
TAXATION ............................................................................................................................................ 11
SALES TAX: ...................................................................................................................................... 11
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INCOME TAX: .................................................................................................................................. 11
FEDRAL EXCISE DUTY: ................................................................................................................. 11
COMPANIES TAX: ........................................................................................................................... 11
THINGS LEARNT: .................................................................................................................................... 12
APPENDIX ................................................................................................................................................. 13


ABSTRACT:

Learning and gaining knowledge is a process that varies, it can adopt different ways. But to get the first
hand knowledge one must put himself in practical and natural environment. The main purpose of doing
internship is to get a clear picture of what the real corporate world is like, how things are dealt with there,
is the specific field appropriate, will the person be able to cope with it or not.
I did internship this summer in Askari Cement Wah Ltd AWT plaza Rawalpindi. The time span of my
internship was 6 weeks. During the course of this period I learnt numerous things along with gaining
experience that will help me my entire life. I was in finance department where I learnt regarding different
areas like budgeting, costing, general accounting procedures, sales accounting, purchase accounting etc.
This internship report incorporates the information regarding the organization that I had the privilege to
work with the working experience there, the things learnt. Askari Cement Wah is an organization that
welcomes newcomers, not at any moment they made me realize that I was new. The people there were
friendly, cooperative and loved to share their experience. They had busy routine but still they took time
out to teach.

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INTRODUCTION:

The prestigious organization that I had the honor of working with this summer was Askari Cement.
Askari cement is a renowned cement manufacturing company of Pakistan it is one of the top 3 cement
company. It comes under the Army welfare trust.
Askari cement is divided into two plants namely:
Askari cement Ltd-Wah
Askari cement Ltd-Nizampur

ASKARI CEMENT LTD WAH:
Askari cement Ltd is the successor of Associated Cement Company, the first cement plant in the territory
constituting Pakistan. In 1921 the plant was set up by the famous Indian based company Associated
Cement Company. It then had the rated capacity of 120 tons per day to produce cement. In 1936 major
expansion was made when a kiln of the capacity of 250 tons per day was added. It was then followed by
an enhancement by 300 tons per day in 1950. In 1960 another kiln that could produce 600 tons daily was
added.
In 1972 the company was nationalized and it was put under the control of State Cement Corporation of
Pakistan in 1974. It was in 1991 that the name of the company was changed to Wah cement Company. In
1994 the old structure and machinery were scrapped and latest state of the art-FLS Dry Process Plant was
installed. This plant was acquired by AWT in 1996.
After the acquisition the name of the brand was changed to Askari cement. The plant that was installed in
1994 had the capacity to produce 3000 tons per day. The capacity of the plant was further enhanced by
500 tons per day in 2006. Now the total capacity of the plant is 1,102,500 tons per year.
ASKARI CEMENT NIZAMPUR:
This plant has been installed by Army welfare Trust, the construction of the plant started in 1993. It was
in 1996 that the first line of production having capacity of 2000 tons per day started. The second line of
capacity of 2000 tons per day started in 2003.
This Nizampur plant was designed by M/s Tianjin Cement design & Research Institute and was supplied
by M/s China Building Material Industrial Corporation (CBMC). The local machinery that was required
was manufactured in Heavy Mechanical Complex (HMC) Taxila, Pakistan.
It was in 2006 that the capacity to produce was increased by another 1000 tons per day, the total capacity
of the plant now is 1,575,000 tons per year.
Askari Cement has the credit of being the first in the cement industry to acquire ISO 9001 Certification. It
is also the first one to acquire ISO 14001 Environmental Friendly Standard Certification in Pakistan.

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DISTINGUISHING FEATURES OF ASKARI CEMENT:

QUALITY:
At both plants computerized quality control systems are installed for raw material and finished product to
ensure:
Strength
Setting time
Curing
Consistency
Soundness
QUANTITY:
Accuracy in weight is ensured up to 50 kg/ bag -+ 1% through computerized packaging and weighing
systems.
PROMPT SERVICE:
Customer satisfaction through prompt professional response is the hallmark of the organization.
FLEXIBILITY:
Cement can be provided to the customers from any of the two plants depending on the preferences of the
customers.
AVAILABILITY:
Because of high production capacity at the two plants in Punjab and Khyber Pukhtun Khwa it has
consistent availability in these two provinces, AJK and Northern areas. It is the only cement brand that
has the distinction of available on credit.
ECONOMY:
As it is of supreme strength its lesser quantity produces desired results and thus provides economy for the
consumer.

ASSOCIATIONS:
Askari cement is proud to be associated with:
Earthquake rehabilitation & reconstruction authority
Project of Frontier Work Organization (FWO)
Projects of National Logistic Cells (NLC)
Housing scheme of GHQ
Khan Kawar Dam. Allai Khawar Dam & Dubair Khawar Dam
Malakand III Hydro Power Project
Neelum-Jehlum Power Project
EXPORTS:
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It exports cement to the following countries:
Afghanistan
Middle East (Dubai, Qatar, Kuwait)
Central Asia
India
Africa

LEARNING AND EXPERIENCE:

I had the prestigious honor of working with Askari Cement Wah Ltd AWT plaza Rawalpindi. I was
appointed as an intern there on 20
th
June 2013 and completed my 6 weeks internship on 31
st
July 2013. I
was lucky as I and my classmate Ayesha Ambreen were appointed together in Askari Cement in the same
department.
Finance is a field I have great interest in and for that reason the department that I choose was finance
department. The working experience there was terrific, each day that passed taught me some thing new.
Not only I learnt the finance related procedures but also there was the environment of the organization
that taught me many things like the communication process, the way employees interact, how things work
in an organization. All these were valuable experiences for me that would definitely help me in the long
run.
Finance is a vast field that incorporates many sub fields, as the time span was short I tried too learn as
many things as possible. I was able to learn related to:
General accounting
Costing
Budgeting
Purchase accounting
Sales accounting
Taxation
The financial procedures that I learnt in Askari Cement in the above mentioned respected departments are
described in detail below. As the finance related work is critical, a single mistake can cost you millions of
rupees, also the Companies rules and regulations did not allow so I was not able to enter the financial
entries in the system. Irrespective of that I learned loads of priceless knowledge that I will cherish my
whole life. The theoretical knowledge it self was suffice for me.
GENERAL ACCOUNTING:
I was appointed under Sir shehzad Ali who was the Assistant Manager. He was responsible for the
vouchers. Under him i studied different types of vouchers that were prepared by the organization. There
are eight types of vouchers namely:
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Cash payment
Cash receipt
Bank payment
Bank receipt
Journal voucher
Purchase journal
Sales journal
Debit/credit note journal
In appendix I each type of the vouchers is attached. Under him I prepared balance sheet from trial
balance just for my own enhancement of skills. Also financial ratios were calculated.
COSTING:
It was under Sir Ameer Abdullah that I learnt activities related to costing. As cost and product are directly
related for that reason firstly Sir told about how cement is prepared in the factory located in Wah.
CEMENT PRODUCTION PROCESS:

RAW MILL:
To make clinker the material that is used is:
Lime stone 74%
It is the major element, cement industries are established in localities where limestone mountains
are in close vicinity as is becomes feasible. For this reason Askari Cement has its plant in Wah as
there are many mountains with limestone nearby.
Clay 24%
It is mostly known as Lal Matti
Iron ore 2%
It is also known as laterite
Sandstone
When limestone that is obtained from the mountains is blackish in color then sand stone is used to
whiten it up.

All these materials are mixed up and are obtained in powdered form. To make 1 ton of clinker 1.54 ton of
material is put in the raw mill. 0.54 tons is lost in process loss, technician loss. The clinker that is
obtained from raw mill is in the form of small balls.

LIMESTONE:
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The Wah plant is established at a distance of KM from the lime stone mountains. To extract the lime
stone from the mountains bombs are used. The company has license for bombing as the mountains are
governments property they have been leased out. The company in turn pays excise duty and LTV on it.
Then to transport limestone two types of transportation is utilized:
Dumper machine
Conveyer belt
Through either of the two transportation facility the limestone is brought to the lime stone crusher. This
crusher has maintenance cost, fuel cost, labor cost, store and spare expense. Once it has reached the
crusher limestone is crushed and stacked in piles, each pile is of 20-25 feet.
CLAY:
Mostly the clay is obtained from the villages located in the outskirts of Wah. Some lands have been also
bought or leased for this purpose. Dumpers are used to transport clay to clay crushers and then piles of it
are made.
IRON ORE & GYPSUM:
They are purchased from Mianwali and Kohat. Iron ore costs 900-1200 per ton but it varies. Both are
crushed in the same crusher as their quantity is less and both the materials are of the same kind.
RAW MEAL:
Once all these materials are obtained Rae Meal is prepared. A computerized automated process is used
in which an operator oversees the ratio in which the materials are to be mixed (74% lime stone, 24%clay,
2% iron ore). Through the conveyer belt the materials are obtained from the specific piles. All the
materials once mixed together in the right proportion is known as Raw Meal. This raw meal is stocked
in cement cello.
KLIN DEPARTMENT:
It has 3 parts:
Pre heater
Kiln zone
Coolex cooler
Through the conveyer belt stock of raw meal is transported to pre heater. The fuel used to heat is coal,
both local and imported coal is used local coal costs Rs 12000-13000 per metric ton whereas imported
coal costs Rs14000-15000 per metric ton. Some furnace oil is also used as coal does not ignites
immediately so in the beginning 1 hour furnace oil is used and then it is converted to coal. Even furnace
oil some times does not catches fire then in that case diesel is used for 10 min, when furnace oil ignites
diesel is stopped.
The material first goes in to the pre heaters where the temperature is 400-500 F, there are 6 pre heaters
their main purpose is to familiarize the material to heat as in the next phase they are exposed to higher
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temperature. From the pre heater the material passes to the kiln zone, in it the fuel is at the bottom and the
material comes from top (pre heaters) in it. The temperature in kiln zone is 1400-1500 F. The material
once passed through these zones comes out in the form of small balls which are blackish in color. The
clinker is prepared.
The coolex cooler is used to cool down the clinker made as when they are produced they are very hot and
take to much time to cool down on their own so coolex cooler does this job quickly. This clinker is stored
in clinker stock hole or clinker dome.
The company stocks cement in the form of clinker as they are not affected by the weather changes, if the
company stores it in cement form then in monsoon season or when it rains the cement will absorb
moisture and will set so to avoid any such situation the company stores them in the form of clinker.

CEMENT MILL:
The feed of material is provided to cement mill through conveyer belt, an operator oversees that the
correct ratio of material i.e 90% clinker, 5%gypsum and 5% limestone is mixed. Finally when they are
mixed cement is ready. From 3-5 years government has allowed the addition of limestone directly to the
crusher as this saves cost for the company. In cement cello the stock is kept for 15 days in winters though
it can be up to 1 month as it absorbs moisture.
The most cost is of kiln and cement mill, their major cost is:
Fuel 55%
Power 20%
Miscellaneous ( spare parts, insurance, depreciation, raw material)
PACKAGING PLANT:
The packer machine has 8 nozzles in which each bags is kept when it is filled the bag is closed and the
they are passed through the conveyer belt to the trucks. Each bag of cement weighs 50 kg.
All this process was described by Sir Ameer and after that he provided a costing sheet and explained in
detail how costing is done. Attached in the appendix is the costing sheet.

BUDGETING:
The company uses two types of budgeting:
Capital
It includes cost that is for more than 1 year, its cost is capitalized and depreciation is used to
charge this cost.
Revenue
It includes costs that are within the financial year and it is charged 100% at the time.
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The process that is followed to get the budget approved is that firstly the demand is place by the
respective departments of the things that are required, then these requests are forwarded to the
HOD who then takes the demands to the GM (general manager) he then if feels that the demands
are appropriate takes them to CEO. It is the CEO who then presents these demand in the board
meeting if the BODs approve the demand then a letter is sent to the finance department who then
gives the money.
In case of revenue budget the main role is played by the marketing department as it is they who
provide breakup as to how much they can sell cement domestically and how much internationally
accordingly the budget is allocated and this schedule is taken to the production.

SALES ACCOUNTING:
It was under sir Faisal Ghuri, and I was appointed under him to learn the procedures of sales accounting.
Sales accounting is very closely linked with marketing and finance departments, because it is through
marketing that the product is sold and once it is sold it is the finance department that deals with the money
in flow. The main task of the sales accounting is :
To record quantitative data
Monitor data
Forecast
TYPES OF BUYERS:

Petty buyers (individuals)
Stockiest, dealers, agencies
Credit parties
Export
STOCKIEST:
Stockiest are given target to sell a fixed amount of cement as the quantity of bags of cement sold
increases the revenues of the company increases. To attract stockiest incentives are given to them. Two
incentives are given namely:
Discount
It is given in the form like if a bag costs 440 Rs the company gives each bag of cement to the
stockiest for 437 Rs in this way the stockiest gains a profit of Rs 3 per bag

Commission
The whole month the bags are lifted and sold at the end of the month the gross quantity is ttaled
and commission is given in the form of cement bags. Like if the worth of the commission was
200,000 then the cement bags of that worth will give, no cash is involved.
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EXPORTS:
International stockiest are available, they are told the slabs according to which the cement will be
available to them and accordingly the target is set.
CREDIT PARTIES:
Credit selling is an attraction for many buyers, long term relation is established and they become helpful
in bad times as well. Also along with credit selling the company gives them cement at lower price.
ENTRIES:
Against each sale that takes place billing is done and for each bill payment is made to the organization
and then it is recorded.
There are two modules finance module and sales module, when a payment is made each parities
individual ledger is updated along with the general ledger. The company uses ERP (enterprise resource
planning) for this reason when sales ledger is updated the general ledger is updated automatically.

PAYABLE ACCOUNTING:
Sir Zubair was responsible for payable accounting and it was under him that I learned the respective
process.
The process that is followed is:
Firstly principal approval is taken before any procurement
Procurement intent is raised
All the specifications are listed that are required
On the basis of the specification quotations are called from the vendors they have to be at least 3
The lowest bid that is quoted is chosen and the order is placed
But before the order is placed approval of the competent authority(CEO etc) is taken who
scrutinize each and every detail also they have the power to approve or disapprove
Purchase order is generated
Once the product is delivered and it is according to the specifications then the factory issued a
receiving report (RR)
When this receiving report reaches the head office the payment to the vendor is made

All the entries of payables are made on the system, finance module is used. The company uses ERP in
which all the modules are interconnected. In the appendix images of finance module are given that is
used to generate purchase order, receiving report and purchase voucher.


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TAXATION:
The taxation was handled by Sir Asif mehmod. Through him I learned that according to the new rules and
regulations every thing is taxed except medical reimbursement which is exempted up to 10% of the basic
salary. Also cash that is not involved in the banking channel is not taxable. There are two types of tax:
Sales tax
Income tax
SALES TAX:
There are two types of tax payers:
Regional tax payer (RTO)
Large tax payer unit (LTU)
When a buyer buys cement from Askari cement he pays the GST to them and on their behalf Askari
cement pays it to the government. On the of cement 17% sales tax is charged. At the end of the month a
reconciliation statement is made to find out the difference between the tax charged and the tax paid( when
askari cement is the buyer). The difference between the two is paid to the government.
Sales tax payable= input output
A tax deduction certificate is issued to the buyers that acts as an evidence that the company has paid the
GST on the behalf of the buyer.
INCOME TAX:
The company deducts the income tax of its employees and pays it on their behalf. The benefit for the
company in this is that it is able to keep money with itself for longer period and hence can earn interest on
it.
FEDRAL EXCISE DUTY:
400 rupees is paid on per ton cement, like if 50,000 ton cement is sold then 20,000,000 (400*50,000) is to
be paid to the government treasury.
COMPANIES TAX:
The companies 35% of the net profit is taxed. Till last year the loss were being carried forward but this
year in 3013 Askari cement Wahs losses were set off and they gained profit for this reason they paid
35% of the net profit to the government.
All these concepts were given by Sir Asif as related to income and sales tax there was nothing that I
knew.

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THINGS LEARNT:

Internship taught me how to communicate with people professionally, how to get the work
required out of them this was some thing that I never had opportunity to learn else where
We learnt many things related to finance in our course books but when the task to prepare a
balance sheet from a original trial balance came it was entirely a different experience and by
making it I learned how actually in an organization things work
Also there were concepts that were forgotten or were vague through this internship they were
revised
Apart from the finance related things there were many things that I learnt the sirs shared different
experiences and also guided me.
They internship gave me an exposure to the real world, the actual financial procedures the thing
we learnt theoretically I had the opportunity to see them practically.
Though I was not allowed to make entries in the system but still the financial module and sales
module used by the organization I had the chance to see.


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APPENDIX

FINANCE MODULE USED IN ASKARI CEMENT