yunas metal works

Yunas Metal Works (Pvt) Ltd.

2 ACKNOWLEDGMENT:

All praises and thanks to Almighty Allah. The Lord and Creator of this universe

by whose power and glory all good things are accomplished. He is also the most

merciful, who bestowed on me the potential, ability and an opportunity to work on this

project.

Although this report base only my name but numerous people were very

important to the development of this report without the support of them I could never

successfully completed the internship as well as the report.

I am grateful to my respected teacher Sir Khawer Haneef who has

guided me in each and every step of this project. Indeed, without his

kind guidance I may not be able to even start this project. May ALLAH give him the

reward which he deserves I am also grateful to all those members who are related to

Yunas fans.

In the end, I am thankful to all my teachers and have a lot of prayers for them who give

me the knowledge and make me able to complete my master’s degree .

Faiza Mehmood MC12103 M.com


DEDICATION:

I dedicate my projects efforts to my PARENTS and respected TEACHERS who taught and hold my hands on every step of my life.

Part- 1

5. 1 Introduction:

Haji Muhammad Yunas was the founder established the Yunas fan in 1944 and now Mr.

Irfan Ahmad Ayub is the chief executive. The Yunas Metal Works is established under

the company ordinance 1984.

Yunas Metal Works (Pvt) Ltd. Gujrat is renowned name among the fan manufacturers for

the last six decades and is serving its esteemed clients by supplying quality products

under popular brand name "YUNAS". Due to relentless and sheer dedication of



the management and highly skilled workforce, this name has been established as

benchmark in the manufacturing of home appliances.

Yunas Metal Works (Pvt) Ltd. Claim that we are capable to produce our products

according to any international standard. We use quality materials, highly skilled workers,

effective management and latest technology. That's why we say "Guaranteed life Partners

The company implements the quality system and had awarded ISO 9002 certificate. The

company maintains quality standard at all levels to establish consistency and efficiency.

The company is exporting its products to U.A.E and Iraq.

During my internship, I have focused on Finance and accounts department of Yunas Fan.

This internship report has been written for explaining the objective of my study which is

about the recording the entries in journal than in ledger than into the final accounts of the

Yunas fan. While working as internee at Yunas fan, I have keenly observed, how

purchase officer record the purchase transaction? How the finance manger record the

payments received/paid transaction? How the sale manager record the sales transaction?

How the export manager record the export transaction? How the chief accountant made

the financial statements?

Vision:

A leading producer of Electronic products by producing the highest quality of

products and services to its customers.

Mission:

To be the number one manufacturing organization in Pakistan and also the other

items like household items.



5.2 Overview of Organization:

5.2.1 Brief history of Yunas Fan:

The Yunas metal works (Pvt) Ltd was introduce by Haji Muhammad Yunas in 1944.The

Company manufacturing the fan since 1960’s. In 1960’s the company was the major

export in Iraq. The company was in peak during 1962 to 1995. Yunas Metal works was

the combination of G.F.C Fan and Metro Fan Yunas fan has its own plants of enameled

wire, copper plants etc. they have no need to purchase these raw material from outside.

Having lots of resources Yunas fan was the No 1 manufacturing company in Gujrat.

However the company was in trouble in 1970 due to the differences in its partners. In

1996 G.F.C take his sheers and comes in the market on the brand name G.F.C. G.F.C was

almost have the 50% contribution in Yunas fan. Later In 2001 Metro take his 25% from

the Yunas fan. Yunas fan paid the heavy amount for using the brand name of Yunas fan.

So After the partition Yunas fan faces many problems like lack of resources, funds,

managing people, and plants.

The initial capital of the company is the (Rupees ten million only) Rs. 10,000,000/-

divided into (One Hundred thousand) 100,000 ordinary shares of (Rupees one Hundred

Only) Rs.100/- each. The company was registered on October 07, 1984 with the

securities and exchange commission of Pakistan under the companies’ ordinance 1984.

The Registered office of the company is situated at Yunas Colony, G.T. Road Gujrat in

the province of Punjab. Yunas fan is working in the manufacturing the electronic goods.

At present Chief Executive is Mr. Irfan A. Ayub. The marketing director Mr. Furqan A.

Ayub. The international marketing director Mr. Salman Ayub. And Mr. Usman Ayub is a

young person who joined the company as a director of Production & Quality assurance.



5.2.2 Nature of the organization:

The nature of the Yunas fan is to engage the company in the business of manufacturing,

assembling, electrical equipments, home appliances and all kinds of its related products

and selling of all types of electric fans and products, electrical and mechanical engineers.

5. 2.3 Achievements & Awards & Honors:

5.2.3.1 Achievement:

Quality Control:

Qualitative aspects of “YUNAS” products are managed by Quality

Control Department through Strict Total Quality Management policy. We use customer

feedback as a tool to further improve our strategies. This department is working under

strict supervision of head of department to ensure reliability through products

positive performance.

5.2.3.2 Awards:

The Technical Director, Irfan A. Ayub, is the member of Technical Committee of fan

development institute of Pakistan.

Finance Director, Furqan A. Ayub, is the member of PEFMA (Pakistan Electric

Fans Manufacturer Association).

Yunas Metal Works (Pvt) Ltd. Is also registered with GCCI (Gujrat Chamber of

Commerce & Industry).

Yunas Metal Works (Pvt) Ltd. got ISO 9002 Certification in March 2000 & upgraded to

ISO 9001: 2000 in May 2002.

Yunas Fans participated in the Islamic countries exhibition held in Saudi Arabia in 2001.



Yunas Fans stood second in industry competition held by PCSIR (Pakistan Council of

Scientific & Industrial Research) in 2000.

Yunas brand products are also approved by PSI (Pakistan Standard Institution) & also

accepted by SASO (Saudi Arabian Standard Organization)

5.2.4 Products and services of Yunas Fan:

Yunas fan provide the wide range of electronic equipments. Following are the types of

the products are as under:

5.2.4.1Products:

Products Offered by Yunas fan are as Follows

1: galaxy Louvre fans

2: Pedestal, TCP & table fans

3: Ceiling Fans

4: wall bracket Fans

5: Heater & exhaust fans



6: washing machines & Dryers

7: Gas Geyser

8: Electric Geyser

9: Juicer Blender

10: Milk Skimmer

11: Automatic storage stabilizer

12: Electric Iron



13: Electric Blast & Patti fitting

1: Galaxy Louvre fans:

Following are the types of Louvre fans

1: Galaxy table

2: galaxy Bracket

3: Galaxy Circomatic

4: Galaxy Pedestal square base

2: Pedestal, TCP & table fans:

Following are the types

1: Pedestal Heavy Duty

2: Pedestal super deluxe (New)

3: Table super deluxe

4: Table cum Pedestal (Plastic Base with/without light)

3: Ceiling Fans

Following are the types

1: fancy gold 6: VIP 11: Classic gold

2: rainbow 7: Hunza 12: Expo



3: Kashmir 8: Marvel 13: Super Deluxe

4: star 9: Galaxy 14: Fanous

5: stone 10: Unique

4: Bracket & Circo Fans:

1: Circomatic Fan (Plastic Body)

2: Fancy Bracket fan

Wall Bracket Fans:

1: Fancy Bracket Fan

2: Unique Bracket Fan

5: Exhaust Fans

Exhaust (Plastic body)

1: Supreme

2: window glass ventilators

3: Unique

4: Exhaust (Metal Body)

5.2.5 PEST ANALYSIS:

It is very important that an organization considers its environment before beginning the

marketing process. In fact, environmental analysis should be continuous and feed all

aspects of planning. The organization's marketing environment is made up from:

The internal environment e.g. Staff (or internal customers), office technology,

wages and finance, etc.



The micro-environment e.g. our external customers, agents and distributors,

suppliers, our competitors, etc.

The macro-environment e.g. Political (and legal) forces, Economic forces, Socio

cultural forces, and Technological forces. These are known as PEST factors.

5.2.5.1 POLITICAL FACTORS:

The political area has a huge influence upon the regulation of businesses, and the

spending power of consumers and other businesses. You must consider issues such as:

How stable is the political environment?

Will government policy influence laws that regulate or tax your business?

What is the government's position on marketing ethics?

What is the government's policy on the economy?

Does the government have a view on culture and religion?

The political situation of Pakistan is not satisfactory and unstable. Rapid change in the Govt. and the change of the policies of the previous govt. by the new govt. abruptly effect the Pakistan’s political situation. Due to these entire factors the foreign investor hesitates to invest in Pakistan. Govt. should device such policies that are beneficial for the local exporter as well as for the investors.

5.2.5.2 ECONOMIC FACTORS:

Marketers need to consider the state of a trading economy in the short and long-terms.

This is especially true when planning for international marketing. You need to look at:

Interest rates

The level of inflation Employment level per capita

Long-term prospects for the economy Gross Domestic Product (GDP) per capita,

and so on

The economic condition of Pakistan is not suitable for investment. Market growth rate is

very low and new investors hesitate to invest. Increasing inflation rate due to heavy loan

make the business environment strict. Actually increase in inflation rate leads to high cost

of production so our country products sell out at a high price but with low margin.



5.2.5.3 SOCIAL FACTORS:

The social and cultural influences on business vary from country to country. It is very

important that such factors are considered. Factors include:

What is the dominant religion?

What are attitudes to foreign products and services?

Does language impact upon the diffusion of products onto markets?

How much time do consumers have for leisure?

What are the roles of men and women within society?

How long are the population living? Are the older generations wealthy?

Does the population have a strong/weak opinion on green issues?

The change in the lifestyle of the people affects the growing demand of the Yunas

products. The change in the lifestyle and needs in different demographics also affect the

demand of the customers.

Due to all these changes Yunas is performing excellent for the excellence of organization

as well as for the customer.

5.2.5.4 TECHNOLOGICAL FACTORS:

Technology is vital for competitive advantage, and is a major driver of globalization.

Consider the following points:

Does technology allow for products and services to be made more cheaply and to

a better standard of quality?

Do the technologies offer consumers and businesses more innovative products

and services such as Internet banking, new generation mobile telephones, etc?

How is distribution changed by new technologies e.g. Books via the Internet,

flight tickets, auctions, etc?

Does technology offer companies a new way to communicate with consumers e.g.

Banners, Customer Relationship Management (CRM), etc?

Availability of spare parts and technicians.



Technological advancement in all the sectors of the country has changed the entire socio-

economic environment. Especially Fan industry sector has incorporated technological

development and advancement in their organizations.

5.2.6Contribution of organization toward economic

development:

Industry is the back bone of the country. Yunas fan play a vital

role in economic development. It exports the goods in foreign country

and raise foreign remittances in country (Pakistan). The other

contributions are as follow:

1: Reduce the UN employment

2: Improve the living standard

3: Increase the purchasing power of an Individual

4: Pakistan fans is best fans all over the world

5.3 Organizational structure of Yunas fan:

Yunas fan has the organization hierarchy and organization structure, which are given

under:



5.3.1 Organization Hierarchy chart of Yunas Fan:


Chief Exective

Director Production

Inventory manager

Store Keeper

Purchase Manager

Purchaser

Director Finance & Marketing

Chief Accountant

Accountants

Purchase accountant

sale accountant

Tax accountant

Cashier

Assistant

Director sale & Export

Export Manager

Export processor


5.3.1.1 Board of Directors:

Bankers:

Habib Bank Limited


Muhammad Irfan Ahmed AyubChief Exective

Furqan Ahmed AyubMrs. Aqsa FurqanDirector

Salman Ahmed AyubMrs. Kiran SalmanDirector

Miss Sajda KhanamMrs. Amara IrfanDirector

usman Ahmed AyubMrs. Aasma UsmanDirector

Major Retired Muhammad siddiqueGeneral Manager

Furqan Ahmed AyubDirector of Finance & Marketing

Muhammad AshrafAccount Manager

Irfan TalabFurqan Ahmed AyubHR & Purchase manager

Usman Ahmed AyubInventory or stock Manager

Salman Ahmed AyubDirector Export


United Bank Limited

National Bank

Summit Bank

Bank of Khyber

The Bank of Punjab

MCB Bank

Faysal Bank

Bank Al-Habib

Auditors:

Tariq Hanief & Co. Rawalpindi

5.3.2 Number of Employees:

Overall number of employees in Yunas fan is (Ninety two) 92.

5.3.3 Main offices:

The main office of Yunas fan is situated at Yunas colony, G.T. Road Gujrat, Pakistan.

5.3.4 Introduction of All Department:

Yunas fan is consisting of the following departments:

1: Production department

2: Quality control department

3: Human Resource department

5: Finance & Accounts department

6: Store department

7: Marketing department



8: sale department

9: Purchase Department

10: Management department

Human Resource department:

HR department is involved in different types of human resource development and human resource development activities. Here are the activities of HR department in Yunas Fan.

1- Recruitment

2- Training and Development

3- Compensation

4- Performance Appraisals

5- Employee welfare (EOBI, social security, Profit Participation etc.)

6- Rewards and Punishments

7- Retiring and Termination Benefits

Finance department:

Finance, another crucial department of Yunas Fan Private Limited,

deals with the financial aspects of the company. That department every year prepares

aggregate budget of the company and that budget is further broken-down into several

sub-budgets. As far as sub-budgets are concerned each department of company is given

the target of annual budget and if any department wants deviate from the finance

department to do so .The finance department keeps records of receipts payments, income

and expenses of the company .That deals with the wages and salaries of the employees .It

also has a responsibility to handle the assets and liabilities released issues .Furthermore ,it

plays a vital role in the preparation of income Statements ,Balance Sheet and Tax

documents



PURCHASING DEPARTMENT:

Purchasing department headed by Purchases Manager,

deals with the purchases of raw material that is ultimately used to manufacture different

stores of products. Actually that department not only maintains records of material

essential to produce the products but also considers the average weekly consumption of

one particular material in factory so that production process may not be hampered due to

non-availability of material. That also places orders for instantly needed materials and

keeps record of goods on way. Purchasing department acquires raw material through two

channels.

i) Local Purchases

ii) Imports

In Domestic Purchasing, Yunas fan purchases raw material regarding the manufacturing

of, fans, washing machines, room air coolers, etc. and mostly for this purpose markets of

good standards are visited. Yunas fan purchases raw material locally from Gujranwala,

Lahore, Gujrat, etc.

In imports, Yunas fan mostly imports those materials that are either expensive or of low

quality in Pakistan. Importing is done to keep the standard of production high as well as

keeping per unit cost at some reasonable point.

The material that in included in imports of Yunas fan are:

G.S Electric Sheets

BAL baring

Here is list of those countries from which mostly imports are done by Yunas fan

Are from:

China

Korea



Japan

Production Department:

Production department in any organization is of immense value.

Performance, working, profitability, etc. depends upon this department. All the products

of organization are manufactured here. It is the department where force of organization

either in labor form or in financial form is applied over material to make products for the

organization. So that organization may sell those products in the market to get profit.

Yunas fan is also paying full attention on the Production department because this

department increases the performance. Production department works under the

supervision of Mr. Usman Ahmad Ayub who is the Director of production department

and four foremen working under his authority.

The production department of Yunas fan is divided into different sections whose working

as a chain like

Motor Section

Body Section

Fitting Section

Packing Section

Motor Section:

In this section of production department motors for various products of Yunas fan are

produced. In this section motors for ceiling fans, pedestal fans, room air coolers, etc. are

manufactured. Ceiling fans use a variety of motors i.e. 36" 48" and 56" are used. And this

Section produces the motors for all. In Pedestal fans motors used are entirely different

from the motors used in ceiling fans. This section also produces the motors for pedestal

fans. Meanwhile room air coolers also use motors in two ways. A motor for fans Motors



for water pumps this section produces the motors for all. This section covers sub sections

as:

Winding Section: In this section copper wire is made winded, for type of motor that is going

to be used in the Production of other products.

Coil Testing Section:

In this section coils made in winding section are tested whether they are in

Working condition or not. Only approved coils are sent to motor section.

Body Section:

In this section bodies of the different products are produced in which no matter the body

is made of plastic or metal. Yunas fan is making fans, washing machines, Air coolers

body, heaters and other products bodies. It is also have sub sections

Blade section

Plastic Molding Section

CNG milling section

Copper Wire Section

Blade Section:

In this section blades for different kinds of fans are produced. Fan blades, blades

for air coolers, etc. are produced here keeping in mind that blades should be good looking

and efficient in working.

Plastic Molding Section:

In this section production department plastic is molded in various

shapes to make bodies of fans in plastic those parts of ceiling fans that are of plastic. In

Short this section makes all the plastic parts of products.

Copper Wire Section:



This section makes the copper wire for own use and also as a product of

G.F.C to be sold in market and for using in its own production process e.g. in making

motors.

Fitting Section:

This section is responsible for the assembling of different parts that make up

a product. In this section rotor and stator are combined to make up a complete motor.

Similarly in blade section blades are assembled with their connecters. In this department

other things like pedestal fans are assembled. This section makes the product in final

shape to be packed and sell.

Packing Section:

In this section products are packed to be delivered to selling and

marketing department to sell them in the market to have income. This department

provides the facility of safe packing and making the products in attractive packing to

catch more and more customers

Sales and Marketing Department:

Marketing and selling department is very important for every

company either is multinational company or domestic company. This department is a link

between organization and customers. It’s the responsibility of this department to make

the customers aware about the products produced in the organization. On the other hand

this department is also responsible to sale the products that are manufactured in the

market.

There is only one Director of marketing i.e. Mr. Furqan Ahmad Ayub.


Raw Material/Input

Processing in production department

Finished goods /Output


Sales & marketing department is responsible to provide the goods and services in the

market according to the customer’s needs and expectations.

In the off-season, Yunas fan has also sell out its products in large quantity by offering

the special discount to the customers.

Export & Import Department:

This department is revenue generator for the organization

and it ensures that organization is gaining in the market. This department is accountable

for the delivery of products to the markets where the organization wants to compete and

capture market by satisfying customers with their quality.

The Director of this department is Salman Ahmad Ayub. This department is responsible

for contacting with foreign raw material suppliers, search for the new suppliers when

needed, import all the raw material required by production department.

Currently Yunas fan export their product to different countries which are as under:-

Iraq

UAE

Accounts Department:

Accounts Department plays a beneficial role in any Organization.

This department shows the progress of the organization and allocates the amount from

sales department for sale and provide amount to purchase department for purchasing raw

material. It is also pays amount to other factors of production in the form of building rent,

wages, employees’ salaries, interest on loans, electricity and other bills, and also

managing company Accounts.



In Yunas Metal works Accounts department works under the supervision of Mr.

Muhammad Ashraf. Accounts department is also responsible for preparing the

annual report of the organization in ending of the year September and June

(September is the closing month of the Annual year of Yunas Metal works and

June is the closing month of Tax Year).

This department is responsible for the distribution of annual Allowances, Bonuses

& relieves to the organization employees and that award is declared by the Chief

Executive of the Company. The Accounts Department has done the following

duties:

Receipts

Collection from sales of good products

Collection from sales of spoiled good / raw material

Collection from Export

Payments

Wages & Rents

Employees Salaries

Utility Bills

Other expenses

Payment to Suppliers

Govt. Payments

Custom and Duties



Sales Tax payments

Electricity, Sui gas & telephone bills

Quality control Department:

Organizations are not compromise on the quality so that for raw

material checking every organization formed a team to inspect the quality as well as its

quantity. Yunas fan has also a department of inspection raw material. That department

restricts the entry of such material is that:-

Low Quality

Less Quantity

Defective/ not perfect

Not useful for production

It is ensure that raw material is

Perfect Quality

Accurate Quantity

Not Defected

Useful for production

5.3.5 Comments on the organizational structure:

Yunas Metal works has strong organization culture. The Organizational

Structure of Yunas fan is well designed by the Directors. In which following

characteristics is as under:



Free flow of communication between the top and low level management

Skilled and well experienced staff

Co-operative staff with every one


yunas metal works

Documents