Internship Report

Wah Industries Limited (WIL)

Submitted by:

Tehniyat Nazar

BSBA-VIIA

Finance

Supervised by:

Mr. Muhammad Aqeel

Quaid-I-Azam School of Management Sciences,

Quaid-I-Azam University,

Islamabad
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 Acknowledgement

My special thankfulness is for Allah Almighty without his grace and blessings I

would have never been able to accomplish this internship project successfully.

My special thanks for my supervisor Mr. Muhammad Aqeel. I am very much

thankful for his valuable time and guidance throughout my internship. His

support, guidance, and encouragement are priceless throughout my internship

project.

I also like to extend my gratitude to all staff members in Wah Industries Limited,

especially manager finance department, Mr. Muhammad Waheed, who provided

me conductive work environment and the much needed inspiration to conclude

the project in time.

I want to thank all those people who helped me in my internship project without

their contribution I will never be able to complete it on time. My special thanks

to my parents who are integral part of my internship project. They encouraged

me a lot in completing my internship project. No doubt without all these people I

would have never been able to complete my task in short time.

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 Executive Summary

I have prepared my internship report based on the 6 weeks long internship

program that I had successfully completed in WIL (Wah Industries Limited),

Islamabad as the requirement of my BBA program in school of Business, Quaid-

i-Azam School of Management Sciences.

In the first part of the internship project report, the general information of the

organization has been collected. This part includes organizational introduction,

its history, objectives of the organization and mission statement, organogram and

the finance department description gathered through primary and secondary

sources.

Second part of the internship report contains my personal working and learning

experience.

In third chapter, there is complete analysis of strengths, weaknesses,

opportunities, and threats for the organization. Basically in this section I briefly

presented SWOT Analysis of Wah Industries Limited.

Finally, in the last chapter there are some recommendations for the improvement

of various operations in Wah Industries Limited and then the conclusion has

been made.

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 Contents
Acknowledgement iv
Executive Summary v
Chapter 01: Introduction viii
History ix
Objectives of WIL ix
Vision Statement x
Mission Statement x
Authority x
Legal Status & Nature of Business ............................................................ x
Organization Structure & Management .................................................. xi
Departments OF WIL xii
Administrative Department .................................................................... xii
Marketing Department xiii
Finance & Account Department .............................................................xiii
Chapter 02: Learning and Experience .....................................................xiv
My Learning and Understanding ............................................................ xv
Transaction and Documents for fulfilling an order from WIL ................. xv
Delivery Orders xvii
Ledgers Accounts xvii
Reconciliation of Accounts..................................................................... xvii
Books maintained by WIL xviii
Calculation of Tax xx
Voucher xx
Payments xxi
Employee Salaries xxi
Chapter 03: SWOT Analysis .................................................................... xxii
Strengths xxiii
Weaknesses xxiv
Opportunities xxv
Threats xxvi
Chapter 04: Recommendations & Conclusion ..................................... xxvii
Recommendations: xxviii
Conclusion xxix

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Annexure xxxi

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Chapter 01: Introduction

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Introduction

Wah Industries Limited “the company” was incorporated in 1958 as

public limited companies Act, 1913 (now the companies Ordinance, 1984).

The company is fully owned by Pakistan Ordnance Factories (POF). The

Company is principally engaged in manufacture and sale of 12 bore

ammunition and sale of civil products purchased from POF. The Company

also acts as commission agent for POF to facilitate its sale of

obsolete/surplus stores and scrapes generated during production in POFs.

The registered office of the company is situated at The Mall, Wah Cantt.

History

Wah Industries Limited was established on 7th Nov 1958, with the

primary objective of maximum utilization of spare capacity in men,

machinery, and materials of the POFs. The legal constitution of the

company and the detailed objects for which it was made that are written

down in the MOA & AOA. According to above documents the defined all

the matters the framework of policies and principles. How board of

directors work and company should be governed.

Objectives of WIL

The prime objective of the Establishment of Wah Industries Ltd is

to utilize the surplus production capacity of Pakistan Ordinance Factory to

meet the civil sector requirements. This procedure is introduced to regulate

the sale of civil production items.

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Vision Statement

“Customer Satisfaction Is Our Goal”

Mission Statement

Corporate objectives/missions of the WIL are:

 To utilize space capacity of POF’s by marketing its qualitative civil

production items.

 Disposal of:

 Obsolete or surplus plants, machinery & stores.

 Ferrous and non-ferrous scraps.

 Manufacturing and sales of qualitative 12-Bore sporting Ammo.

 Economical utilization of company’s funds in profitable Ventures.

Authority

Wah Industries Ltd has been appointed sole selling agent of POF’s

products in accordance with agreement on 5th March, 1962 between POF

and WIL. WIL is a commercial enterprise of POF and is incorporated

under companies Ordinance 1984, registered as a public company and

functions within the preview of the memorandum and articles of

Association and Companies Ordinance to achieve its objectives.

Legal Status & Nature of Business

Wah Industries Ltd was incorporated in 1958 in Pakistan as public

limited companies Act, 1913(now the company’s ordinance 1984). This

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company is fully owned by Pakistan ordnance factories (POF) the

company is engaged in manufacturing and sales of 12 bore ammunition

and sale of civil products purchased from POF. The company also acts as

commission agent for POF to facilitate its sale of obsolete/surplus stores

and scraps generated in POF.

Organization Structure & Management

 Management affairs of the Company including selection,

appointment, evaluation, promotion and termination of services of

the officers shall be controlled by a BODs and the number of

Directors shall ordinarily be not less than three and not more than

seven, one of them being elected as the Chairman.

 The Chairman shall exercise such powers of the board as are

delegated to him by the board and give decision on urgent matters

which due to time factor could not wait for a board meeting.

 All matters, other than finance, requiring reference to and decision

by the Chairman will be routed through the Director of Industrial &

Commercial Relations, POFs. The financial matters will be referred

to Financial Advisor.

 Quarterly meetings of the WIL Board will be held to guide and

progress the business management of the Company.

 Any powers not specifically provided in the Manual shall rest with

the Board.

 The Chief Executive of the Company shall be the Managing

Director.

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Departments OF WIL

Following are the departments of the Wah Industries Ltd and their

introduction:

 Administration Department

 Marketing and Sales Department

 Sale Section (Disposal)

 Sale Section (Civil Products)

 Sale Section (Cartridges)

 Finance and Account Department

Administrative Department

Management affairs of the Company including selection,

appointment, evaluation, promotion and termination of services of the

officers shall be controlled by a BODs and the number of Directors shall

ordinarily be not less than three and not more than seven, one of them

being elected as the Chairman. All matters, other than finance, requiring

reference to and decision by the Chairman will be routed through the

Director of Industrial & Commercial Relations, POFs. The financial

matters will be referred to Financial Advisor. Quarterly meetings of the

Wah Industries Ltd Board will be held to guide and progress the business

management of the Company. The Chief Executive of the Company shall

be the Managing Director.

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Marketing Department

Wah Industries Ltd was come into being for the two major

objectives which was the purpose of utilization of the surplus capacity of

POF as well as the purpose of investment in the new projects.

Finance & Account Department

The finance department of a business takes responsibility for

organizing the financial and accounting affairs including the preparation

and presentation of appropriate accounts, and the provision of financial

information for managers. The finance department is responsible for

processing payroll, paying to vendors or suppliers (account payable),

accepting payment from customers (account receivables), and managing

financial matters, allocating assets, reducing liabilities and managing cash

flow.

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Chapter 02: Learning and Experience

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My Learning and Understanding

I did my internship in the Account and Finance Department of Wah

Industries Limited. During my internship various tasks and responsibilities

were assigned to me. The responsibilities and tasks made me more

disciplined, organized and punctual. I also learned how to settle and adjust

in the working environment of an organization for healthy output. More

importantly, I have improved my time management and communication

skills. While working at WIL, I learned new ways of formal business

communication. I have learned how to deal with the customers. Through

my observation I have also learned about the behaviors of different

individuals under different circumstance. Following are the work,

activities, and different tasks which I learn, observe and perform in Wah

Industries Limited.

Transaction and Documents for fulfilling an order from WIL

I have seen that WIL have mainly three types of sales. And

according to that they have three sales section, that are;

 Sale Section Disposal (Sale of Obsolete/ Surplus Store & Scrap of

POFs)

 Sale Section Civil Products (WIL own product)

 Sale Section Cartridges (POF Products)

Customers of WIL send their orders for cartridges, disposal and

civil products to the sales department of WIL. For C.P and disposal items

are made by respective sale department. Orders are usually accompanied

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by Advance/ Security money and effect the following transaction in

accounts:

 Debit to Bank account

 Credit to Customer account

This transaction is recorded in the bank book and posted to the

customer ledger in the customer’s account. Total of each page of the bank

book is posted in control account in General Ledger.

Sales department sends Delivery Orders to the accounts department

for confirmation of amount in customer’s account. Accounts department

makes necessary entry in customer’s account in the respective ledger and

sends back the delivery order with the present status of payment written on

it.

Sales department intimates customers of the readiness of the goods

for supply and supplies the goods after taking signature on the delivery

order. The delivery order with customer’s signature is send to accounts

department. The accounts department records the sale into respective sale

book makes necessary entries in the customer’s ledger send invoice/ bills

to the customers and store copies of the invoice along with delivery order.

Sales procedure of other items

There are following 5 sequences of steps of sales process of other items.

 Acceptance and signing of contract

 Advance payment

 D.O preparation

 Verification

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Delivery Orders

A delivery order is prepared in six copies by sale department. Sale

department forwards it to accounts department for endorsement of position

of the customers. The accounts department returns it to the sale department

along with the present status of the customer balance. Sales department

then gives delivery to the customers.

Ledgers Accounts

I have learned how to record entries in ledger account under the

supervision of Mr. Azam. Separate book are maintain to record i.e. cp

product, disposal and cartridge.

Reconciliation of Accounts

All ledger accounts are reconciled on the end of month. Summaries

of accounts also made monthly. I also observed the different ledgers

accounts reconciliation. And I reconcile security account. The security

account reconcile on the three basis that are:

 Refunded

 Forfeited

 Balance

Bank Reconciliation Statement

Under the supervision of Mr. Faisal Shabbir I prepared the bank

reconciliation statement. Match the cash balance as per bank book with

respect to bank balance as per bank statement. Verify all balances of bank

statement with the company’s accounts. The bank statement is mail or sent

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by the bank at the end of every month. When WIL receives its bank

statement, then verify that the amounts on the bank statement are

consistent or compatible with the amounts in the company's Cash account

in its general ledger and vice versa.

Bank Reconciliation Process

Step 1-Adjusting the balance per bank

 Add deposit in transit

 Deduct outstanding cheques

 Add or deduct bank errors

Step 2-Adjusting the balance per books

 Deduct bank service charges, fees or NSF cheques

 Add interest earned

 Add or deduct error in WIL account

Step 3-Comparing the adjusted balances

Step 4-Preparing journal entries

 Adjustments to increase the cash balance will require a journal

entry that debits Cash and credits another account.

 Adjustments to decrease the cash balance will require a credit to

Cash and a debit to another account.

Books maintained by WIL

Cash book

Keep record of all payment and expenses made inform of

cash.

Customer Ledger

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 Its include record of various customer.

Sales Ledger

The sales record of civil product and disposal items are

recorded and different ledger of both products are available.

Bank Balance

All transaction (payment and receipts) with the bank

recorded in it with the name of own bank.

J.V Register

All entries are kept regarding all transaction of WIL.

Salary Register

Salary record of employees is in this register month wise.

Asset Register

Record of all assets of WIL is kept in this register, the main

purpose of this is to depreciate the assets.

Staff Provident Fund

The transactions related to Staff Provident Fund such as

contribution to it and payment of loan to employees against their funds, are

recorded in it.

Gratuity Fund Register

All transaction regarding to contribution of employer and

withdrawal of employees are kept in it.

General Ledger

It is a collective book of all activities which include all

accounts of WIL

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Calculation of Tax

In this week, I learned how to calculate sales tax under the

supervision of Mr. Adnan Ahmed. I prepared the sales tax invoices. Sales

tax is included in each product. First of all, I calculated the actual price of

the product. For example in June 2014, the cartridge rate per unit is Rs 38/-

. It’s including sales tax. Tax rate is 17% and 2% additional Sales tax. The

sales tax is file for return on monthly basis.

Voucher

These are used for payment of liabilities of other expenses. A return

authorization for each expenditure is prepared and it is called a voucher. At

present WIL is using the following vouchers:

 Journal Voucher

 Cash Payment Receipt Voucher

 Bank Deposit / Receipt Slip

Journal Voucher

Journal voucher is used to keep record of journal entries of all

transactions it descript the debit and credit entry of all transactions.

Receipt voucher

The receipt voucher is used to receive the payment either in cash or

banks. Both payment and receipt voucher are in serial numbered and keep

in separate month wise jacket for continence.

Bank Deposit Slip

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 This document is used for depositing money in the banks. Original

copy is received by accounts department; duplicate is retained by the bank

and triplicate by the customer.

Payments

The payment to supplier by WIL is done when the goods are

received. Following are the steps of payment to suppliers which are

observed by me under the supervision of Mr. Adnan basher;

Employee Salaries

I observed how salaries accounts are maintained in Wah Industries

limited. I also learned calculation of funds, final due case, new employee

assessment. Salary statements should be made in every month. All

transactions are first recorded on written record after that data also

recorded and maintained in computer. I learn all the salary rules and fund

rules for the calculation of salary of an employee. The regulations and

guidelines are given by government of Pakistan Finance division.

I also learned to calculate the monthly salary of the employees.

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Chapter 03: SWOT Analysis

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SWOT Analysis

The SWOT analysis is an extremely useful tool for understanding

and decision-making for all sorts of situations in business and

organizations. Identification of SWOTs is important because they can

inform later steps in planning to achieve the objective. SWOT stands for

Strengths, Weaknesses, Opportunities, and Threats. The SWOT analysis

headings provide a good framework for reviewing strategy, position and

direction of a company or business proposition. During the seven weeks of

stay at Wah Industries Limited, I have identified the following: Strengths,

Weaknesses, Opportunities and Threats.

Strengths

 It is the organization owned by the government so it has full

support of GOP, that’s why a large number of resources are

available to WIL.

 The working conditions for the employees are safe both for

managerial and production floor of the organization. The

organization obtains different levels of ISO certifications. High

security is provided to the sensitive area of arms.

 The organization has large number of resources. Power houses for

production of electricity especially for Estate area where employees

are living with families. They have also a large number of human

capitals. They have also well-developed infrastructure.

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  Wah Industries Limited has a monopoly within the country. They

have no competitor within the country. Only organization to serve

armed forces demand of war weapons Arms & Ammunitions.

 The qualities of products are very good. And they have high

production capacity.

Weaknesses

 The organization exist traditional bureaucratic style of

management. They have centralized structure organization. So the

decision making process is very slow. They have longer purchase

cycles.

 Organization lacks in the promotion of their products. Their

advertisement strategies are not appropriate for the market.

 Most of the employees are demotivated towards their jobs. There

have not so much rewards for good work. Organization has weaker

in career development and too much time takes for the promotion

of employees. And promotion is very slow. As a result employees

are reluctant to take

 Recording methods are very old, manual system of record keeping.

Book keeping system is very old. At this time they need to use the

computerized book keeping and other documentation system, e.g.

use of software’s. No centralized database, which can lead time

consuming activities. They involve in detailed documentation for

single job which leads toward slow decision making.

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  There have no measures for the accountability of the employees. If

they develop accountability measures for employees then they use

their human capital efficiently.

 There have communication gap among the departments. Employees

are reluctant to sharing their ideas. There have Lack of Effective

communication among departments.

Opportunities

 Organization may take steps to enter in international market in

future. WIL has also capacity to increase its production for local as

well as international clients by taking right decision and efficient

utilization of available resources. Because they have availability of

well develop infrastructure and resources. For example they may

penetrate in international market with their main product such as

Shaheen.

 Good brand image in the local markets as well as in the foreign

markets also.

 Requirement and consumption of weapons has increased in recent

political and security environment. Demand of safety accessories

and related products have also increased in recent times

 They have well developed resources of different kind. By using

efficiently they may increase their businesses.

 POF has the opportunity to make a diversification toward other

industry like automobile manufacturing. Because they had

availability of all type of resources which needed in that type of

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 field. Service sector business opportunities are under explored.

They have well developed land, property building resources

available on prime locations. Research and development projects

should be undertaken in near future.

Threats

 Material cost is increasing day by day in foreign markets.

International market is increasingly offering more economical and

better products. The price of small arms ammunitions decreases in

international market. Cost of fuel & material is increasing in

international markets.

 If in near future there has any restriction by the Government on

exports & imports then it is a threat for the organization. It all

depends on the political stability. The privatization is also a factor

which includes in the political stability.

 WIL may face high rivals from neighbor countries in near future,

e.g. Benxi from China, Eastern Chemical Company, BASF from

Japan. The competition also arises from local entrants with low

prices. There have also a threat from Pirated cartridges

manufacturers.

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Chapter 04: Recommendations & Conclusion

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 As I above discussed that POF is Mother Company of WIL and

they engage in more than 40 countries in international market so they must

assure efficient utilization of resources. WIL must concentrate on market

development and product development because WIL has capability to

prove itself best. As many underdeveloped countries improve their armed

forces to excel so POF as well as WIL has an opportunity to expand and

introduce them in other markets.

Recommendations:

As an internee I have some recommendations for Wah Industries

Ltd which I observed during the internship tenure:

 Strategic goals should be set by WIL, and make such strategies to

achieve these goals moreover they must empower their mangers so they

can be able to take quick decisions for the best interest of organization.

 Decentralized organizational structure must be adopted.

 Training programs must be initiated that help employees in grooming

their abilities and making them able to face new challenges.

 Some compensation program must be initiated as it helps to increase the

loyalty of employees.

 Attendance through technological means should be taken in order to make the

employees punctual and responsible.

 Proper dress code of employees should be determined, in order to give a

proper look of an office environment and give fine impression on clients visiting

NHA.

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 Computers and other costly equipment should be granted only to those

employees who have proper knowledge of how to use them properly.

 Quota for female employees should be increased in order to increase the

morale of already working females as well as to increase the competition

amongst the employees.

 Promotion should be done on the basis of qualification and competence rather

than using seniority as the only criteria of promotion to ensure betterment in

organizational performance.

 Internship should be paid.

Conclusion

POF is Mother Company of Wah Industries Ltd it is a strategic

asset of whole nation because it is only organization that provides arms and

ammunition to arm forces as well as police, Law and enforcement

agencies, civil aviation, etc.

Most of the current technology used by Wah Industries Limited is

Outdated so it needs to adopt the new technology to remain competitive in

the market. To be successful in future they must invest on R&D projects

and cut down their unproductive expenses so they could be able to generate

more funds and allocate resources.

There is an increasing trend in the current ratios of the company in

last few years. The current ratio is more than 1 which is a good sign. Wah

Industry Limited is more capable of paying its obligations, as it has a larger

proportion of asset value relative to the value of its liabilities.

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 While doing internship at WIL, I was able to equip myself with the

experience of practical life and especially the learning of working in a public

sector organization. I think, I was successfully able to gain sufficient knowledge

of office work which will help me throughout my career to polish my capabilities

and to work for my prospective employer in a proper way.

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Annexure

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 Reference
http://www.wahindustries.com.pk/
http://www.pof.gov.pk/

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