INTERNSHIP REPORT ON FICO ELECTRIC (PVT.) LTD.

MBA (Semester 4th)

Name of Internship Assessor

Signature of Internship Assessor

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Table of Contents
Detail

Page

EXECUTIVE SUMMARY..06
ORGANIZATION STRUCTURE...11
INTRODUCTION OF ALL DEPARTMENTS..12
WORK DONE BY ME.14
WEEKLYTIME TABLE...14
SWOTANALYSIS16
CONCLUSION.17
RECOMMENDATIONS 18
REFERENCES...................................................................................................................19

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Acknowledgement
Simply put, I could not have done this work without the lots of help I received
Cheerfully from whole management of Fico Electric (PTV.) LTD. The work culture in
Fico really motivates. Everybody is such a friendly and cheerful companion here that
work stress is never Comes in way.
I would specially like to thank to may Supervisor who is the Chief Accountant Sir
Aftab Ahmad and also the General Manager Syed Muhammad Haider and
Purchase Manager Sami Ullah Mohsin for proving the nice ideas to work upon. Not
only did they advise about my project but listening to their discussions during the
work has evoked a good interest in Image analysis. I am also highly indebted to
Assistant Accountant Waqas Mir and Cashier Imran Hanif, who seemed to have
solutions to all my problems.

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DEDICATION
I DEDICATE THIS REPORT
To Holy Prophet Hazrat Muhammad (P.B.U.H), to my Parents who financially sport
me, without their help I will not be able to complete my MBA Finance as well as my
internship report.

INTRODUCTION
Fico Electric (PVT) LTD was the part of Fico Hi-Tech. Fico Electric (PVT) LTD
is a well known organization in Pakistan. Before the establishment of Fico

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Electric (PVT) LTD. There were three owners of Fico Hi-Tech. All of three was
brothers. When Fico Electric (PVT) LTD comes into existence at date of 01july-2011, two brothers take the ownership of Fico Electric (PVT) LTD
These two brothers choose the products to be manufactured was the 11-20
KV current transformer and 11-15 voltage transformer. And the sales of these
two products in the Fico Hi-Tech were the 66% among all the products
manufactured. Fico Electric (PVT) LTD is a manufacturing organization. My
Aim in Fico Electric (PVT) LTD is to get check and find out the practical
knowledge of whatever I studied. The objective of this is:

Who much this company follow the rules of the business

To attract the management in respect of my capabilities
To check the implementation of bookish knowledge
To get MBA (Masters in commerce) degree.

OVERVIEW OF THE ORGANIZATION

History
FICO was established in 1952 with name FAIZI INDUSTRIES and was
incorporated as a Private Limited Company in 1985. Since then FICO is
involved in manufacturing of Switchgears, Control Gears, Distribution

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Protections and Measuring Equipments. FICO is associated with the group of

companies comprising of M/s Climax Engineering. Co. Ltd, Faizi Brothers,
Aziz Steel Mill and Aziz Electric Co. These Companies are playing a key role
in development of Industrial sector in Pakistan. FICO made revolutionary
developments with its wide range of well-designed and engineered
Distribution, Protection and Measuring Equipments and also meet all
parameters of International Standards. FICO focused its all efforts to produce
highly reliable and quality product to compete relevant competitive products.
Within short span FICO was considered as the Name of Guarantee. After
achieving an honorable position in the economy FICO started manufacturing
of Low Voltage & 11 KV Medium Voltage Current Transformers with great zeal
and zest during the year 1985 by their own experience and research. The
continuous struggles and aim to produce best quality product resulted high
demand of FICO make LV & MV Current Transformers.
In 1995 the name of FAIZI INDUSTRIES (PVT) LTD was replaced by FICO
(PVT) LTD and during the year 2002 FICO (PVT) LTD was bifurcated to
further two separate companies, based on nature of its products, with
commitments to make entire efforts for development, improvement and best
quality of their particular products according to International recommended
standards:
1.

FICO HI-TECH (PVT.) LIMITED

(For Fuse Switches & Dropout cutouts etc).

2.

FICO ENGINEERING CO. (PVT.) LIMITED

(For LV & MV Switchboard etc).

3.

FICO ELECTRIC (PVT) LIMITED

(For Instrument Transformers)

A brief introduction of FICO Electric (PVT.) LTD. is as under:

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Technical Staff
In order to maintain the quality assurance according to the international
standards, the company has hired the services of qualified Engineers,
Technical staff and Skilled Workers.

Plant and Machinery

Company has installed modern, sophisticated machines, equipments and
instruments to meet all parameters of Electrical and Mechanical areas
according to International Standards. In addition to the above Company have
in house facilities of Casting Electroplating and Hot Dip Special Galvanizing at
its own works.
Testing Facilities
Company has privilege on having a well equipped laboratory comprising the
worlds most latest testing instruments to perform all routine & quality control
tests and also all others particulars tests verify and test the standards of its
products in accordance with the international as well as the required
standards of our local valued customers i.e. IEC, ANSI, BS, WAPDA and
KESC.

Products Certifications
FICO Electric (PVT) LTD is very much enthusiastic to verify the quality and
standard of its products, therefore always keen to get it product certified from
international independent labs like KEMA Holland, HV/SC Rawat, Pakistan,
RTL Faisalabad, and UET Lahore.
Product Range

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Resin Casted MV Instrument Transformers i.e.

Low Voltage Current Transformers (LVCT)
Import business
Fico import instruments from the china and Thi-land which are used in the
manufacturing of transformers
Nature of the Business
Nature of Business is Manufacturing. This company produces transformers
which use in production of electricity.
Reward honors & success stories
It is the reward for FICO-Electric that it is delivering the products to
multinational companies such as Siemens Engineering Company of
Germany.
Product lines
Fico hi-tech produces different related products, which are as following:
Resin Casted MV Instrument Transformers
Low Voltage Current Transformers (LVCT)

PESTL Analysis
The PESTL analysis looks specifically at factors which are external to the
organization and have a serious impact on the business through which
organization can know which strategy we need to persu to finish or lower
down the impact of such factors on the organization. These factors may
includes competitors, government, legal and technological factors etc
Politics influences

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Competitors use the political influence to make their product saleable to the
wapda. Sometimes they give bribe to the National testing design company
(NTDC) to check the prototype of the Fico Electric products which leads to
stop the production of the Fico products and company cannot start its
production until testing of the products is complete.
Economic influences
Economic conditions also affect the Fico Hi-Tech. Pakistan is not so much
strong country. Pakistan is facing inflation problem also. Due to inflation the
raw material is too much costly and it restricts the Fico Hi-Tech to increase
the production. There are no new plans for increasing the energy such as
dames etc. if the economic conditions of Pakistan are strong then there will
be new plans for energy sectors. New plans for energy sector mean more
demand for Fico Hi-Tech products.
Social influences
Fico Electric is providing employment to the society. There is no influence of
society on the organization
Technology influences
Technology has a great influence on the Fico Electric. Recently Fico replace
its plants due to change in the technology, because Fico has to check the
quality of its products through modern way of technology. Fico has its own Inhouse technology when technology becomes change. Fico also changes its
In-house technology according to latest standers to produce the quality
products according to the requirements.
Legal and environmental factors
Fico Electric also follow consumer laws. It is certified ISO 9000 (2). There is
no labor union in Fico. Fico follow the labor laws. Environment is totally save
because Fico make its production from the electricity
Contribution of Fico Hi-Tech toward economic development
The overall contribution of Fico Electric (PVT) TLD, Fico Hi-Tech and Fico
Engineering has a great toward economic development. In the presence of
Fico Electric there is no need to import the Low voltage current transformer,

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Medium current transformer. And all the FICOS providing are the source of
employment for the people of Gujranwala.

Organizational structure
Organizational structure of Fico Electric is explained as under:

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Number of employees
In Fico Electric there are 40 employees who are working in different
departments such as Production, Sale, Purchase, Accounts and Security etc.

Offices
Main office of Fico Electric is situated in Climaxabad near Educator College
G.T Road, Gujranwala.
Fico Electric has two offices one at Lahore and at Karachi.

Introduction of all Departments

There are following departments which are working in Fico Hi-Tech:

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Purchase Department
In purchase department there is only one purchase manager performing all
duties related to purchases. According to the demand of production
department, purchase manager give orders to the suppliers. Orders include a
set of regular supplies which need not to tell to the suppliers they give it after
the specified period. Sometimes purchase department also need unusual
items which he purchase. Its important for the purchase department to
ensure that they are not over or under ordering and that all purchased items
actually reach the stock room. There are times when the order you receive is
not that which was ordered, there may be damages or shortages. Obviously
the amount you pay must be changed; the supplier notified and returned the
damaged goods.
Production department
Fico Electric is producing electric product which is Resin Casted MV
Instrument Transformers, Low Voltage Current
Transformers (LVCT). A
supervisor control whole of the department. Production department also
perform the activities of sale department. Because there is no sales
department in Fico Electric. Production manager done sale activities with the
help of production supervisor.
Accounts department
Accounts department is managed by chief accountant. He has three
subordinates; two are assistant accountants and one is cashier. Accounts
department maintain all accounts regarding sales, purchase, debtors,
creditors, Tex deduction, import & export etc.

Comments on organizational structure

Structure of the organization was brilliant because the Managers of all
departments are very much specialized in their duties. That is the reason
before making any decision. Top authorities call all the managers for knowing
their point of view for the matter under discussion. After knowing their point of
view Directors are the final authorities to take the final decision. So in Fico

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Electric there is a concept of work specialization. Here is a concept of

Departmentalization because for accounts, purchases and production. There
is a separate department. There is no Human Resource Department.
Accounts department perform all the activities of Finance department.

Work done by Me

Introduction
There are some of departments which are working in Fico Electric. The
department where, I spent my most of time during internship is Accounts
Department. Accounts Department is run by chief accountant and two
assistant accountants. Accounts department record all accounts regarding
sale and purchase, receivables, bank receipts and payments etc. First of all
Accounts department prepare manual vouchers. Then these vouchers are
computerized thorough a software Account Master which is used by the
company. Then these journal vouchers are posted in to ledgers through the
software. Sale tax invoices are also prepared by the accounts department.
Income tax, under sec 151 and 153, details are also recorded by the account
department.

Detail of supervisors
During my internship I was supervised by Chief Accountant Mr. Aftab Ahmad
and Assistant accountant Mr. Waqas Mir.
Activities performed during internship
I have worked in Accounts department as an assistant accountant. My job
was passing the journal entries of sale, purchase expenses and making
vouchers etc. I also record the unregistered purchase on the excel sheet,
bank receipts and bank payments as well as prepared bank reconciliation

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statement. I also file the returns of the company. During my internship i also
make visits in the banks with the cashiers.

Weekly timetable
I have spent my whole of the internship period as following:

First week

At first week Chief Accountant give me a task to check the account balances
of Fico Electric Company with the bank statements of three months for the
following banks:
Allied bank
Habib bank
Silk bank
There was a difference between the balances of bank statements and the
balances that was in the record of accounts department.
The difference was regarding:
Bank charge the amount for their services being performed but Company has
to deducted the fee of Bank charges from his record in order check the exact
amount of cash in his account. The same procedure was with the withholding
tax.
Company deposits the cash in his account and debits his account for that
amount but banks have to still credit the company account in respect of
company deposits.
Company make withdrawal from the bank to meet the current cash needs but
bank has to still debit the account for his withdrawals.
Company debits his account after the deposit of cheque at the last date of
month but the difference were regarding bank credit this cheque in the next
month.
Similarly Customer deposit and withdraw amounts to and from company
accounts but bank has to still make addition and subtraction.
Work after seeking the differences:

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 To match the accounts balances with the bank Balances Company first adjust
the bank charges and withholding tax by making the voucher.
The accounts that are prepared by the company before seeking the bank
statement are needed to manipulate after finding the differences in the
balances of bank statements.
The differences are automatically posted in the relevant accounts by making
the single click on software after preparing the voucher. I see manager
activities on the software regarding that then I practice on software.
Then to match the balance with the balance of bank shows the un-presented
and un-credited cheques in the bank reconciliation statement.

Second week

Types of purchases
Fico Electric Company make purchases on sale tax invoices, on credit and on
cash.
When company sell goods to the customers. Customers make payment to the
company after deducting the income tax and sale tax on the sale invoices.
I calculate the sales tax and income tax that our customers deduct on sale
invoices then they submit to the government.
Customers deduct tax of 3.5% as income tax of inclusive value of company
sales and 1% of exclusive value as sales tax and submit to the government.
Similarly company deducts income tax and sales tax of the suppliers and pay
net amount to them.
But company cannot deduct taxes of suppliers who attach exempt note with
the invoices or if the suppliers are commercial traders.

Third week

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 I calculate the manager income tax through simple and marginal relief per
month salary of one director is 65000 and per month tax through marginal
relief is 4500 and through simple method per month tax is 4875. Chief
Accountant Pays after deducting the tax net salaries to directors.
I record company purchases on excel sheet that were made recently on sale
tax invoices and utilities bills details.

Fourth week

I make list of payments and consult with the directors about that. Who give
approval and subtract some suppliers from the list of payment. They also give
order how much we will pay to supplier after checking the list of payment.
Finally account manager make cheques of payments and I check those
cheques amounts with the new payment list and get signed from director.
I file returns of sales tax, sales tax withheld and purchase tax on the Federal
Board of Revenue side with the help of assistant accountant. Before this, I
crosscheck the amounts of sales tax & purchase tax with the relevant
invoices and approve it from the accounts department.

Fifth week

Income tax & wealth statements verified with record and make summaries
with evidence.
I check the serial of voucher from the voucher register and tally the amounts
of vouchers with the bills and make the register of cash payment vouchers for
the month of February.
I get practice the method of making vouchers in which the major portion was
Account name and Description of making the purchase. Then these vouchers

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are post into the ledgers. Finally from the software head REPORT get
vouchers in printed form.
I make vouchers and attach it to the bills from which company make
purchases. Record of that purchase was also maintained by the store keeper
and gate keeper. This record was also attached with the vouchers.

Six week

Types of voucher
Bank payment voucher
Bank receipts
Cash payment (cash purchase+ cash expenses)
JVs (purchase + transfer + other adjusting entries)
Cash receipt (sales + withdraw from bank)
Under these conditions company make vouchers: When supplier gets their payment through Bank Company make voucher
called bank payment voucher.
When company gets payment from customer there is a need for making
voucher called bank receipts.
When company makes payment in cash to suppliers then there is a need of
cash payment voucher.
Similarly when company gets payment in cash then there is a need of cash
receipt voucher.
In case of credit purchase there is a need of general voucher.
At that day I make the deposit slips of cheques and cash and go with the
cashier for deposits in the banks.
After doing the daily work we make arrangements of files and keep them in
their lockers and waste the unnecessary papers and files.
I update the record of daily cash purchases.
Make cash payment vouchers and attach it in the file in descending order.
Summary of learning

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I am very glad to see a lot of practical related to my Accounts subjects. That

internship repeats my pervious concepts of Accounting, just like checking
bank statements and making vouchers etc. I have learned about the software
being used in the Fico Electric for Accounts. I have learned that under what
conditions a voucher is made and who it is made. I learn the who the cheque
is made what are the points through which other person can do by our
mistakes in a preparing a cheque. I also learned a little bit related to tax
matters such as filing returns at FBR website. One thing I have learned that if
there is a field which have proper implementation that in accounts.

SOWT Analysis
There are two part of the swot analysis. First include the strength and
weaknesses that are internally second include opportunities and threads
which are externally. An organization conducts the swot analysis for
determining the internal factors contributing to the success of the organization
and what are the areas needs for betterment. Secondly organization checks
what are opportunities and thread which we can face in the external
environment.
Followings are the strength weakness and opportunities and thread of the
Fico Electric.

Strengths
Its the major strength of the Fico that it is only one company in the Pakistan
who make sales of its products to the Wapda.
Fico Electric has a skilled employees at the top level of every department
The strength of the organization is the brand name of FICO, which is known
throughout the Pakistan for its excellence.
Fico competes with the competitors due to the technicality in the products.
Fico get involvement of employee at the time decision making, through which

employees are know that company give them importance.

Fico Electric has good location.
Fico has quality infrastructure.

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 Fico give quality facilities to their employees.

Fico has the reward system.
Weaknesses

Fico Electric has not its own website.

Employees are not satisfy with their salary package.
Fico Hi-Tech has no proper marketing management.
Company doesnt motivate its employees.
Lower Employee satisfaction level.
Higher employee turnover rate at production.
Opportunities

Fico Electric is dealing in the energy components and Pakistan is facing

serious energy shortage so its opportunity for fico to increase its goodwill
through quality products to get attraction.
Customers are trusting on the Fico products. Its the opportunity for the
company to increase its product line.
Fico Electric can increase its sales through e-commerce.
Threats
Energy crises are the biggest threat for Fico Electric.
Cost of raw material is increasing day by day.
Uncertainty of WAPDA is also a big threat because it is major one customer of
Fico Electric.

Conclusion
Fico is the important part of the energy sector. After achieving an honorable
position in the Wapda through its products of low voltage & 11 kv voltage
current transformers, Now Fico has the opportunity to enter in the
international market because Fico major customer is wapda and future is
uncertain so its necessary to produce its customer for in spite of relying on
single customer.

Recommendations

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After spending the four weeks at Fico Electric I will suggest Fico to make
improvements in the followings areas:

Fico Electric should establish his website as early as possible.

Fico should enter in the international market.
Employees didnt know their role in the process which they are performing.
Company should tell to his employees what they are contributing in the
total order So that they should know timely and effective completion of
work will increase their company position.
Fico has given good infrastructure and facilities to his employees. But
turnover is due to low salary. There should be modification in the salary
structure in such a profitable company so that turnover can be minimize.
Fico Electric should start e-business. Because this will be the time saving
and increase in sale.
To enhance the quality of the products Fico should establish the
partnership with the suppliers
As we know that improvements can never be end So Fico should show
commitment to continuous improvements.
Fico Electric is a renowned organization it should expand its product line
to increase its customers.
There should be scissions for proper training of employees.

Employees should be empowered. When responsibility is assigned to

someone authorities should also be assigned to that person. This helps in
getting quality work.
There should be department of Human Resource Management, Marketing
and Finance.
Fico should follow the Statical process control for checking the defects in
the products.
There should be proper internal check system so that working of one
employee can be automatically checked by others.
Employees should be empowered so they can be worked with confidence
without fear.
To maintain the interest at the workplace there should be job rotation
among the employees.

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REFERENCES
ficoelectric.com
Mr. Aftab Ahmad (Chief Accountant)
Mr. Sami-Ullah

(Purchase Manager)

Mr. Waqas Mir

(Assistant Accountant)

Mr. Imran Hanif

(Cashier)

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