Professional Documents
Culture Documents
Report Title:
Presented By:
Bilal BC06132
Approved By:
Gujranwala Campus
Executive Summary
I have selected Gujranwala Chamber of Commerce & Industry (GCCI) organization.
All the companies or businesses in Gujranwala are members of GCCI. The GCCI can issue
Membership or Measurement Certificates as well as Certificates of Origin for the export
cargoes and attestation of commercial documents. GCCI also issues recommendation letters
for Visa and Passport & other benefits.
I have learned a lot from this organization. I have done my work of internship in R &
D Cell for first three weeks, one week in Membership department, one in Accounting & last
one in Computer cell. Everyone in these departments has supported me, in order to collect
important information required for this report. Whenever I go, they received me with warm
welcome and helped us in all matters. Their cooperation provided me comfortable
environment for data collection. I have conducted face to face interviews with staff
members. I have also observed the whole organizational environment.
I have felt many discrepancies, like non segregation of duties, dose not have required
staff & faced many other challenges in the industrial sector due to energy crisis, political &
other challenges which become the grater hurdle in the way to promote the industries
smoothly. I concluded from my internship that GCCI is running as a good organization and
has solid records throughout its life period & providing many benefits to its employees. To
I am indebted to Staff of GCCI for their support and intricate comments on various
aspects conjoined with motivation made me to come forth holding such as report.
Introduction to Report 01
Organizational Profile 02
Management Hierarchy 06
Departments 07
Area of Internship 13
Financial Analysis 37
SWOT Analysis 53
Recommendations 60
Conclusion 61
Bibliography 62
Annexure 65
Introduction to Report
This report is made for my professional experience after the completion of B.Com 8th
semester. This report is about Gujranwala Chamber of Commerce & Industry (GCCI) which
is engaged for the promotion of commerce & industry in the district of Gujranwala. In this
report, I have explained, my experience at GCCI. First of all in the first portion of report, I
am giving the Profile of GCCI & its major service to members. I have also explained about
the Quality Policy of GCCI.
The management of GCCI has not provided me Vision & mission. So, I have created
Vision & Mission Statements of GCCI. In the second portion the report this I am try to
explain different departments of GCCI & their functions.
Membership Department
R & D Cell
Accounting Department
Computer Cell
In this part, I have also explained the area of my internship at GCCI & the work done by
me at GCCI during internship. In the 3rd part of report, I have done the Financial Analysis of
GCCI in order to evaluate the financial position of the GCCI through;
Horizontal Analysis
Vertical Analysis
Ratio Analysis
The Gujranwala Chamber of Commerce & Industry has providing his services to its
members from a long period of time since 1970’s, in Gujranwala. It strives hard to contribute
in the economic development of Pakistan in general or of Gujranwala in particular .But now
a day, due to energy crisis, high inflation, higher interest rate & high unemployment rate are
major challenges which badly affect the Trade (Exports or Imports) & economic
development of the Pakistan.
Logo of GCCI:
Services of GCCI:
The Gujranwala Chamber of Commerce & Industry providing the following major
services to its members;
Contact of GCCI:
Address:
Telephone:
+92-55-325-6701
+92-55-325-6702
+92-55-325-6703
+92-55-325-6704
Facsimile:
E-mail:
info@gcci.org.pk
Every activity of GCCI is directed towards the promotion and protection of the
business interest of its members at National and International level in accordance with ISO
9000 standard.
Objectives:-
Following are the Vision & Mission Statements, which I have defined;
Departments
The Gujranwala Chamber of Commerce & Industry has performed its operations with
the help of following four departments;
Membership Department
& Industry shall receive this application & place such application on Agenda for the next
meeting of the Executive Committee which shall thereupon consider such application & can
accept or reject the application as described in Articles of Association of the Gujranwala
Chamber of Commerce & Industry.
These are all the necessary & main activities which are done by this department in
order to facilities the members of Gujranwala Chamber of Commerce & Industry.
R & D Cell:
The Research and Development Cell of GCCI was established in 2007, as the focal point for
various activities carried out in the Chamber. It was set up in response to a growing need
from the business community in the region for up to date information on business and
economy, processing the same to facilitate members, and interacting with the government on
macro and micro business and economic policies.
We are planning to make our R&D cell as a platform that will bring the academia and
industry closer by offering the following opportunities to the students of management
sciences:
Accounting Department:
The objective of Accounts Department is to keep record of all the expenditures &
incomes of the Gujranwala Chamber of Commerce & Industry, & make the financial
statements for the users especially for the members of Gujranwala Chamber of Commerce &
Industry.
The proper & accurate record of all these incomes or expenditure is the function of
Accounting Department of Gujranwala Chamber of Commerce & Industry.
The Computer or Information Technology has changed the traditional way of doing
the business. Due to Globalization it is a prerequisite for any business to grow & achieve its
objective in the global comparative environment. The “Computer Officer”, Mr. Hafiz
Muhammad Barhan headed this department of Gujranwala Chamber of Commerce &
Industry.
The basic idea of Computer Cell is to bring innovation and to keep up with latest
inverted trends of Information Technology. This department is furthermore responsible for
the maintenance & updating the website of the Gujranwala Chamber of Commerce &
Industry and provides all relevant information to the members of the Gujranwala Chamber of
Commerce & Industry.
Function Performed:
The Director General of R& D Cell explained me the bulletin means a magazine
which is issue fortnightly by the Gujranwala Chamber of Commerce & Industry, it is the
requirement of every chamber to issue news bulletins & it includes following parts;
1. President Message; the message from the President of the Gujranwala Chamber of
Commerce & Industry.
2. Columns or General Articles; means write articles like on Unemployment or Energy
Crisis or other that affect the import or exports of the goods.
3. Trade Opportunities, it involves two elements;
a) Wish to Buy,
b) Wish to Sell
1. Up Coming events across the world, it includes the upcoming exhibitions or
seminars.
2. International Tenders,
3. Urdu Section, &
4. Pictorial views
Research:
The same research, as I have taken course as Business Research Methods, it is really
good for me to learn the practical knowledge of research. In the library of the Gujranwala
Chamber of Commerce & Industry a lot of books, reports or bulletins of different cities are
prove very helpful in analytical review.
In the second week of the internship, I am working with Director General & assist
him in making the Chamber news bulletin & Director General has helped me & gives me
mistakes in order to improve my skills & politely .
In the 3rd week of internship Director General has given me an assignment to make
country Profile of 5 countries;
1) Germany,
2) Bosnia,
3) Vietnam,
4) Chili, &
5) South Africa
Location,
Boarder Countries
Form of Govt.
Head of State,
Population,
Area,
Pakistan’s Balance of Trade with Germany,
Pakistan’s op ten exports to the Germany,
Pakistan’s op ten exports to the Germany,&
Key economic indicators.
After the submission of the above assignment, I have started my working in other
department n order to take the full practical experience of GCCI.
I have worked for Membership department for one week in forth week. At
membership department, I have learned how to issue a certificate of the membership the
Gujranwala Chamber of Commerce & Industry. They procedure is to renew the membership
of Gujranwala Chamber of Commerce & Industry. The main function of this is the issuance
of membership ID card, attestation of commercial documents for exports Gujranwala
Chamber of Commerce & Industry, Visa etc.
The whole work of the Gujranwala Chamber of Commerce & Industry can be understood
by the help of 2 legal documents f the GCCI.
Memorandum of Association:
i. To purchase and construct, take on lease or in exchange, hire otherwise acquire land
and building and all other property, moveable or immovable, which may be deemed
necessary for the purposes of the Chamber.
j. To sell, improve, manage, develop, mortgage, dispose of or otherwise deal with all or
any part of the property of the Chamber.
k. To borrow or raise money for the purpose of the Chamber upon such terms and in
such manner as the chamber may think fit.
l. To subscribe or become a member of, and co-operate with the Federation of Pakistan
Chamber of Commerce & Industry, and procure from and communicate with any
Chamber and Association of trade and industry such information as may be likely to
forward the cause of this Chamber.
m. To accept bequests, donations or subscriptions towards or to accumulate and provide
a fund or endowment or wake and to invest the same and apply the income arising
therefrom or to resort to the capital thereof, for any objects of the Chamber.
n. To aid and to receive aid from any other society, Association, Company,
Corporation, firm, Partnership or person promoting or formed or intended to promote
any of the objects of the Chamber, Corporation partnership or person, with a view to
obtain any advantage or benefit for the purposes of the Chamber & to subscribe to
any fund or Society, as may be considered from time to time.
o. To subscribe to any local or other charities and to grant donations for any public
provident or superannuation fends for the employees of the Chamber or otherwise to
assist any such employees of their widows and children.
p. To draw, accept, bills, handiest, notes or other negotiable instrument and to invest in
or operate the accounts of the Chamber with any Bank or Bankers.
q. To establish a commercial & statistical Library.
r. To remunerate any person or company for service rendered or to be rendered in
placing or assisting to place or guaranteeing to place any debentures or other
securities of the Chamber.
and insurance, among the businessmen and industrialists in Pakistan and Gujranwala
district in particular.
1. The income and property of the chamber, When-so-ever derived shall be applied
solely towards the promotion of the objects of the Chamber as set-forth in this
2. Memorandum of association, and no portion thereof shall be paid or transferred
directly or indirectly by way of dividend, bonus, or otherwise, howsoever, by way of
profit to the members of the Chamber provided that nothing herein shall prevent the
payment in good faith of remuneration to any member of the Chamber, or any other
person in Return for any service actually rendered to the Chamber.
3. The paragraphs 4 and 9 of this Memorandum are conditions on which a license is to
grant by the Federal Government the Association in the pursuance of Section 26 of
the Companies Ordinance 1984.
4. Every Corporate Member, Associate Member and Town Association affiliated with
the Chamber undertakes to contribute to the assets of the Chamber in the event of the
same being wound up, during the time that he is a member or within one year
afterwards, for the payment of the debts and liabilities of the Chamber contracted
before time at which he ceased to be a member and of the costs, charges and expenses
of winding up the same and for adjustment of the rights of the contributors amongst
themselves, such amount as may be required not exceeding the sum due upto the date
of such winding up on account of subscription.
5. If any member of the Chamber pays or receives any dividend, bonus, or other profit
in contravention of the forth paragraph of this Memorandum, his liability shall be
unlimited except as above the liability of the member is limited.
6. If upon winding up or dissolution of the Chamber, there remains after the satisfaction
of all its debts and liabilities, any property, whatsoever, the sum shall not be paid to
or distributed amongst the members of the Chamber but shall be
before the tin-default thereof by such judge of the Court in Gujranwala, as may have or
acquire jurisdiction in the matter.
7. Amendments to the Memorandum of association shall be subject to the approval of the
Government & shall also be made when required by the Government in public interest.
8. The jurisdiction of the Chamber will extend to the district of Gujranwala and areas as
may be defined by the Federal Govt. from time to time..
Articles of Association:
The Articles of Association (AoA) is the document about the internal affairs of a
business. The AoA of Gujranwala Chamber of Commerce as follows;
Definitions
1) In the interpretation of these Articles, the following words and expressions shall have
Internship Report Page 30
the following meanings unless repugnant to the subject or context.
1. "The Chamber" means the Gujranwala Chamber of Commerce & Industry.
2. '"Member" means a member of the Chamber.
3. ''Corporate Member" means a member of the Chamber which is either a body
corporate or multinational corporation with its head office or branch office in
Pakistan or a sales-tax registered a sales-tax-registered business
expenditures and outcome and intended goals for the trade organization as
provided in rule 25;
18. “Office" means the registered office of the Chamber.
19. "Service Rules" means the service rules framed by the Executive Committee
of the Chamber, governing the terms & conditions of services etc. of the paid
employees of the Chamber.
20. "District"' means the District Gujranwala.
2) For the purpose of registration, the Chamber is declared to consist of unlimited
number of members.
3) The Chamber is established for the purposes expressed in the Memorandum of
Association of the Chamber.
Business Place
The registered office of the Chamber shall be at Chamber Plaza, Aiwan-e-Tijarat Road,
Gujranwala & the business of the Chamber shall be carried on at this place and on such
other places in Pakistan as fall or may fall within jurisdiction of the Chamber.
Classes of Membership
There shall be following classes of members who may be either local or outstation members.
Namely:
a) Corporate Members
b) Associate Members
c) Town Association
Internship Report Page 32
A body corporate or a multinational corporation with its head office or branch office in
Pakistan or a sales-tax registered manufacturing concern or a sales-tax-registered business
concern having annual turn-over of Rs. 50 million or above engaged in trade, commerce,
manufacturing, industry, transport, banking, i nsurance, accountancy or mining or any other
lawful business for profit shall be eligible for enrolment as a Corporate Member, in their
conventional or corporate name provided they have their principal place of business or Head
Office situated in the areas falling within the jurisdiction of the Chamber.
Associate member means a member of the Chamber which is not a body corporate or a
multinational or a sales-tax registered manufacturing concern or a sales-tax-registered
business concern having annual turn-over of Rs. 50 million or above engaged in trade,
commerce, manufacturing, industry, transport, banking, insurance, accountancy or mining in
any particular branch or these lines, also persons engaged in or connected with economics,
arts, sciences or literature bearing upon trade, commerce, finance, industry, mining,
manufacturing, agriculture or transport Or any other lawful business for profit provided they
have their principal place of business or Head Quarter situated within the jurisdiction of the
Chamber.
Any candidate for membership shall have to pay as Admission Fee and Annual
Subscription according to the following rates: The membership fee chargeable from
each class shall be fixed by the Executive Committee subject to approval of the General
Body and Director General.
Accounting year of Chamber of Commerce and Industry will be closed on 30th June
each year & its financial Statements are duly audited by a Chartered Accountant along with a
list of members as on 30th September shall be furnished by Chamber to the Director General,
Trade Organization, on or before the 31st day of December of every year. Subscription for
the whole year paid in any month from April to March shall be counted for the year
commencing from 1st April, and the subscription paid in any month form October to March
shall be counted for the year commencing from 1st October.
Renewal of Membership
Subject to the provisions and restrictions in these Articles or any rules made
thereunder the rights and Privileges of membership may, in the case of a firm enrolled in
the conventional name as a member of the Chamber, Be exercised by any partner in such
firm or by any Manager or other responsible officer of such partnership, and may, in the
case of a Joint Stock Company or other corporation, enrolled in their corporate name as
a member of the Chamber, be exercised by a
Secretary General under Article 21, Subject to Article 16, provided that such a
REPRESENTATIVE TO resign from the Committee or Sub-Committee at any time.
Application of Membership
Every application for membership shall be in the form prescribed by the Executive
C o m m i t t e e accompanied with the admission fee and subscription for the first year and be
forwarded to the Secretary General of the Chamber , who shall on receipt of the same,
place such application on Agenda for the next meeting of the Executive Committee which
shall thereupon consider such an application and accept or reject the same. In the case of
acceptance the date of submission of application will be considered, as the date of enrollment
as the member of the Chamber for all purposes. In no case shall the Executive Committee
give any reason for rejection of the application. .. If the
Majority of the members of the Executive Committee vote against the admission , the
application shall be deemed to be rejected.
Cessation of Membership
Any member, who, by any reason, ceases to be a member, shall nevertheless remain
liable for and shall pay to the Chamber all moneys which at the time of such cessation of
membership may be due from such member to the Chamber.
a) Any association, corporation, institution or body whose objects are similar to those
of the Chamber may be affiliated with the Chamber upon such terms and conditions as
the Executive Committee may deem fit.
b) The Chamber shall not secure affiliation with any international or foreign body, and
shall not extend invitations to any foreign organizations or individuals or accept any
invitations from them. For participation in any conferences or functions to be held
Pakistan or abroad, without the prior permission of the Government.
Privileges of Membership
Subject to the restrictions contained in the provisions of these Articles generally, or any
bye-laws framed thereunder, any member, shall, among others, have the following rights and
privileges:
Registration
Any member withdraw from the Chamber by giving one month's notice in writing to
the Secretary General of his intention to do so and upon expiration of the notice, such
member shall cease to be a member of the Chamber subject to Article no. 18.
Administration
The Administration of the affairs of the Chamber shall be vested in a body called the
Executive Committee herein referred to as the Committee.
a) The Executive Committee of the Chamber shall comprise persons elected by the
General Body from amongst its members, subject to the following, namely:-
b) There shall be maximum thirty seats of Executive Committee.
c) At least fifty per cent of the members of Executive Committee shall be from the
corporate class,
d) The Electoral College for each class of members of Executive Committee shall be the
member of General body from the respective class.
e) In addition to the seats provided in clause (a), the immediate past President shall be an
ex-officio member of the Executive Committee without voting right.
i. There shall be two seats of Executive Committee reserved for women entrepreneurs
for which the Electoral College shall be the Executive Committee.
Internship Report Page 39
ii. There shall be one seat reserved for nominee of each Town Association affiliated with
the Chamber,
iii. If any seat reserved for any of the stipulated categories remains vacant, it shall
Not be filled with members from other category: provided that any seats
remaining vacant in any category shall not be counted towards determination of
quorum.
iv. In the General Body comprises at least fifty per cent members from Associate Class;
there shall be rotation of office of President between the Associate and Corporate
Members.
v. Where there is rotation of office of the President, the President and Vice-President shall
not be from the same class of members. .
vi. Where there is rotation of office of the President, the President and Vice-President shall
not be from the same class of members. .
vii. Office bearers of the Chamber shall be elected by the Executive Committee from
amongst its members.
viii.The tenure of all elected office bearers shall be one year.
ix. The tenure of members of Executive Committee shall be two years subject to the
following'
a) 50 or fifty per cent members of the Executive Committee shall retire every year .
b) After the first election of the Executive Committee a draw shall be made to determine,
the fifty percent members who shall retir e after expiry of first year.
i. The tenure of office bearers of Executive Committee shall be one year.
On completion of the term the office bearers and members of Executive Committee
shall not be eligible to contest election or co-option in any representative capacity in the
Chamber for the next one year
Casual vacancies of members shall be filled by co-option by the Executive Committee from
amongst the class of membership to which the out-going member belonged. Those of the
Vice President shall be filled the Executive Committee by election from amongst its existing
members and the resultant vacancy of the member shall be filled by co-option from amongst
the members otherwise eligible to be elected. Provided that no such vacancy shall be filled
under this clause during the first 90 days as well as 270 days after the holding of the annual
election.
On retirement from the Committee, the retiring representative or his firm acting through
any other representative shall not be eligible to stand for election to the Committee for the
next one annual term.
Edibility to Vote
The eligibility of a member of the Chamber to vote at the elections of the Chamber
shall be subject to following conditions;
the member has completed two years of valid membership of the Chamber as on the
date of announcement of election schedule by the Executive Committee of the
Chamber; and he has member fulfilled the conditions of membership and renewal
thereof of the Chamber.
Every member eligible to vote shall deposit with the Secretary General, the specimen
signature card along with photograph indicating the status in the firm, company or
concern. The right to vote shall allow only to proprietor, partner or the director of the
member firm or company, or a person not below the rank of General Manger
authorized by the Board of Directors of a public limited company, private limited
company or a multi-national as the case may be.
The proprietor or, partner or director of the member firm or company, concern or a
person not below the rank of General Manger authorized by the Board of Directors
The election commission shall be incharge of all arrangements connected with the
conduct of elections including but not limited to;
Appointment of polling staff;
Ensuring display of the tentative voters' list by the Secretary General for the purpose of
inviting objections;
Elimination of and decision on the objections received on the voters' list; and
Supervision of polling process and ensuring that the polling has been conducted in
an orderly, peaceful, transparent and fair manner in accordance with the provisions of
The election of the Chamber shall be conducted according to the law & procedure
laid down in Articles of Association subject to the following:-
The polling shall be held simultaneously at the head office, regional offices or where
the number of voters exceeds fifty at the branch offices of the Chamber: Provided that where
for want of space in the office premises it is not possible to establish the polling booths, the
polling shall be held in a public place such as a community hall or hotel.
The Secretary General of the Chamber shall display within seven days of the schedule
the provisional list of all members eligible to vote along with their national tax number, sales
tax registration number, if applicable, the name and national identity card number of their
representative shall be displayed at:
the notice board of the head office and regional offices of the Chamber; and
The website of the Chamber.
The members who have any objection to the entries in the list of voters shall send their
objections in writing to the Secretary General within seven days of the issuance of the
voters' list.
The Secretary General will intimate action on the objections or changes sent by
members within five days from the last day under preceding clause.
Within two days of the decision of the Director General the final voter's list shall be:
1) Displayed at the notice board of the head office and regional offices of the Chamber.
2) displayed at the website of the Chamber; and
3) Submitted to the Director General: Provided that if no appeal has been filed to the
Director General, the final list of voters shall be displayed within 15 days of the
decision of the election commission.
Within 4 days of the display of the final list of voters, any person who is eligible to contest
the election for the vacant post, shall send his nomination duly proposed and seconded by a
duly registered voter & signed by the candidate to the Secretary General on the prescribed
form in accordance with the Article of Association or rules of the Chamber.
Within 24 hours of receipt of nomination papers, a copy of the final list of voters shall
be provided to each contesting candidate.
The nomination paper shall be scrutinized by the commission and list of candidates shall
be displayed within 24 hours of the last date of receipt of nomination papers.
The objections, if any, to the nomination of the candidates can be filed to the election
commission within 24 hours of issuance of the list of candidates, which shall be decided by the
election commission within two days.
Within two days of the decision of the Commission fails to decide within stipulated time,
any person aggrieved by the decision of the Commission may appeal to Director General,
who shall decide the case within 7 days and his decision in this regard shall be final.
Within five days of display of final list of candidates, the poling for election of members of
Executive Committee shall be held.
Within 2 days of the poling any person elected as members of the Executive Committee,
shall send his nomination for election as office bearers duly proposed & seconded by an
elected Executive Committee members & signed by the candidate to the election
commission.
The nomination paper shall be scrutinized by the commission and list of candidates shall
be displayed within 24 hours of the last date of receipt of nomination papers.
Within 2 days of display of final list of candidates, the poling for election of office
bearers shall be held.
The final result of the election of members of Executive Committee and office
bearers announced at the annual general meeting of the Chamber called for this purpose
within 15 days of the date of poling under the preceding clause but not later than 30 th of
September of the Calendar year.
1) The final election results announced in the annual general meeting shall be:
2) displayed at the notice board of the head office and regional office of the Chamber
3) displayed at the website of the Chamber within 2 days and
4) Submitted to the Director General within 7 days.
In the last week of internship I have spent my time at Computer Cell & check the
network where the records or information about Gujranwala Chamber of Commerce &
Industry, & how the maintain & support the Gujranwala Chamber of Commerce & Industry,
web sites content. I have also observed how the data process is support the activity of the
Gujranwala Chamber of Commerce & Industry.
Different users like, Investors who buy stock are primarily interested in a company's
profitability and their prospects for earning a return on their investment by receiving
dividends and/or increasing the market value of their stock holdings. Creditors and investors
who buy debt securities, such as bonds, are more interested in liquidity and solvency: the
company's short-and long-run ability to pay its debts. Financial analysts, who frequently
specialize in following certain industries, routinely assess the profitability, liquidity, and
solvency of companies in order to make recommendations about the purchase or sale of
securities, such as stocks and bonds.
Current Assets
Current Liabilities
Donations - - 600,000.00
➢ Horizontal Analysis,
➢ Vertical Analysis,
➢ Ratio Analysis,
➢ DuPont Analysis, &
➢ Altman Z-Score
In the financial Analysis of Gujranwala Chamber of Commerce & Industry a have done the
analysis of three primary types of Financial Statement Analysis;
1. Horizontal Analysis,
2. Vertical Analysis, &
3. Ratio Analysis
Horizontal Analysis:
Under this I prepare Comparative Balance Sheet or Statement of Financial Position &
Comparative Income Statement or Statement of Financial Performance.
% %
Current Assets
Capital&Liabilities
Current Liabilities
The Horizontal analysis of 2009-08 is compared to the previous year’s figures. As the
total non current assets are significantly increase by 58.4% as compared (3.27%) of GCCI
but Cash & Bank balances of the GCCI are significantly decreased by 63.05% as compared
to 5.27% of the 2007-08 comparison & The current assets are decreased by 36.38% as
compared to positive 6.34%. The overall total assets of the GCCI are also decreased in 2008-
09 as compared to previous year.
The Capital fund which is funds used for all the purposes of GCCI is also reduced by
9.13% as compared to the previous year which is 3.58% positive. The Liabilities of the
GCCI is also increased significantly increased by 48.68% as compared to 17.15%. So, the
Vertical Analysis:
Vertical Analysis refers to the study of relationship of various items in the financial
statement of one accounting period. It means an analysis that displays all items as
percentages of a common base figure like Sales in Income Statement & Total Assets in
Balance Sheet. All other accounts on the financial statement are compared
to it. In the balance sheet, for example, total assets equal 100%. Each
asset is stated as a percentage of total assets. Similarly, total liabilities
and stockholders' equity are assigned 100% with a given liability or
equity account stated as a percentage of the total liabilities and
stockholders' equity. For the income statement, 100% is assigned to net
sales with all revenue and expense accounts related to it. .
This is also called “Static Analysis”, as it based on data of one year only rather than
data from year to year. Under vertical analysis, the statements showing the
percentages are referred to as Common Size Financial Statements.
Current Assets
Capital&Liabilities
Capital Fund
Current Liabilities
The Vertical analysis of 2009, 2008 & 20007 is compared to the previous year’s
figures. As the total non current assets are significantly increase by 50.79% as compared
29.28%these are reduce in 2008 but now significantly increase show a good sign for GCCI.
But Cash & Bank balances of the GCCI are significantly decreased by 19.98% as compared
to 44.47% of the 20008 comparison & the current assets are decreased by 49.21% as
compared to positive 70.71% which is increase from previous year but great fall again. The
overall total assets of the GCCI are also decreased in 2008-09 as compared to previous year.
The Capital fund which is funds used for all the purposes of GCCI is also reduced by
98.46% as compared to the previous year which is 99.05% positive. The Liabilities of the
GCCI is also increased significantly increased by 1.54% as compared to 0.94%. So, the more
significant fluctuations in 2009show that the performance of this is very poor as compared to
last year.
Donations - - 5.88
The Vertical Analysis of the statement of finical performance of 2009, 2008 is poor
as compared to the figures of 2007. The administrative expense of GCCI is significantly
increase as compared to the year 2007 in 2009 & goes to 119.91% increase from 87.46%.
The total capital fund of GCCI is also decrease by 200.11% which is 213.82% in the last
year & 214.85 in 2007. This is not a good sign the funds of the GCCI is reduced, this can
create a greater trouble for GCCI, if these are not increase in the next year.
Ratio Analysis:
Financial Ratios are like financial temperatures, which give the state of the health of a
business. This analysis technique is most widely used. It is the only mean of better
understanding of Financial Strength & Weakness. It can be divided in different Categories
like;
Liquidity Ratios
Activity Ratios
Debt Ratios
Profitability Ratios
Market Value Ratio
Liquidity Ratios:
Liquidity Ratios are used to measure a firm’s ability to meet short-term obligations.
They compare short-term obligations to short-term (or current) resources available to meet
these obligations. From these ratios, much insight can be obtained into the present cash
solvency of the firm and the firm’s ability to remain solvent in the event of adversity.
Interpretation:
The rule of thumb is 2:1, as in 2009 company has Rs/32.05 to pay its Rs.1 liability
however the company has Rs/74.91 & Rs/58.36 in 2008 & 2007. As it is reduce as compared
to previous years, it is unfavorable for GCCI.
Interpretation:
The Absolute Quick Ratio of GCCI is 11.71 in 2009 which is significantly decreased
from the previous years, as in previous it is 47.11 & 37.08 in 2008 & 2007 respectively. It is
also unfavorable of GCCI.
Activity ratios are calculated to measure the efficiency with which the resources of
the firm have been employed. These ratios are also called “TUROVER RATIOS”
because these ratios indicate the speed with which assets are being turned over into sales.
Following ratios are calculated under this head of GCCI;
Debtor Turnover
Average Collection Period
Total Assets Turnover
Non Current Assets Turnover
Current Assets Turnover
Debtor Turnover:
Interpretation:
The Debtor Turnover Ratio of GCCI is increased in 2009 which is 5.82 times as
compared to previous years, which are 5.40 times & 5.33 times in the 2008 &2007
respectively.
Interpretation:
The average collection period shows after how many days the company accounts
receivables convert into cash. The current results shows that company has improved as in
current year average collection period is 62 days which are less then previous years figures
of 67 days in 2008 & 68 days in 2007.
For 2009 Total Assets Turnover Ratio = 10,311,977.68 / 20,956,963.62 = 0.49 times
For 2008 Total Assets Turnover Ratio = 10,620,421.88 /22,925,068.63 =0.46 times
Interpretation:
In 2009 the company has a healthy turnover of assets into sales, show the
management efficiency to convert its total assets into sales. In 2009 it is 0.49 times as
compared to 0.46 times of both 2008 & 2007.
2009 Non Current asset Turnover Ratio = 10,311,977.68 / 10,643,841.23 = 0.97 times 2008
Non Current asset Turnover Ratio = 10,620,421.88 / 6,713,652.20 =1.58 times 2007 Non
Current asset Turnover Ratio = 10,204,376.00 / 6,940,745.22 = 1.47times
In 2009 the company has non current assets turnover of 0.97 times which as lower
than previous years of 2008 1.58 times & in 2007 1.47 times. This shows GCCI has not
efficiently utilized its non current assets in 2009.
Interpretation:
In 2009 the company has current assets turnover of 1.00 times which as greater than
previous years of 2008 0.66 times & in 2007 0.67 times. This shows GCCI has efficiently
utilized its current assets in 2009.
Strengths & Weaknesses are linked with internal environment. Opportunities &
Threats are linked with internal environment.
It is significant of pointing out that SWOT analysis can be very subjective - two
people rarely come-up with the same description of a SWOT analysis even when given the
same information about the same business and its environment.
Strengths:
These are attributes of the organization that are unique & are helpful to attain the
objective of the organization. Following are the elements;
GCCI’s top management is the Executive Committee, who is the combination of both
experienced & young energetic professional which are proving to be the real strength of
GCCI. This top management also includes the Director General. The main motive of all the
members of Executive Committee & Direct General is towards the support & full
commitment of all the trading activities in Gujranwala.
Gujranwala Chamber of Commerce and Industry has very good relation among different
departments, coworkers, colleagues and subordinates. This good relationship can leads
towards the effective communication between different departments, coworkers, colleagues
& subordinates.
The infrastructure of the GCCI is very attractive, which creates a good image in the mind
of visitors or outsiders. The infrastructure of GCCI has improved very much over the years
& still all the President can spend many funds every year to improve it further.
Sign of Quality:
GCCI has implemented ISO 9000 standard, which is a sign of Quality at very level of
organization & clarity in its internal processes. This creates a great image as ISO certified
Company has a great influence on the outsiders or foreign countries. That’s way GCCI has a
strong trade and industry monitoring and controlling position in the market.
Gujranwala Chamber of Commerce and Industry has a Library which has maintained
vital statistics records & this library is the main requirement in for every Chamber. The
different department of GCCI like Membership Department has also maintained statistical
records for long term in order to avoid any ineffective operations.
Weaknesses:
These are attributes of the organization that are harmful to the achievement of its
objective. Following are some points which I have observed under this head;
In the Accounts department of GCCI which is a very crucial department. Only one
person an Accountant is done both jobs of “Cashier & Accountant”, this is very harmful for a
business that a single person can issue cash & also record that cash, so he can record
All the plans and their implementation made through Ministry of Commerce &
Federation of Chambers. The GCCI has a member is bound to follow all of their
requirements. Although these plans in his favor or not, the implementation of those is
compulsory on GCCI.
The GCCI has also facing Staff problems, in R & D cell only Director General of R & D
cell is work for this cell. He required a handsome staff in order to conduct research projects,
make making fortnightly bulletin in order to give proper guide & support to the members of
GCCI.
Opportunities:
These are external conditions or factors that are helpful to the achievement of its
objectives. Following are the Opportunities for GCCI;
GCCI has enough capacity or space as it own the whole Chamber Plaza, they have
just four departments, GCCI has a bigger opportunity to introduce or add or expand its
departments, like any one or two departments in to promote & effectively discharge its
services ,
2. International Relation
4. Industrial Development
8. Islamic Medicine
9. Economic Development
No Competitor:
Gujranwala Chamber of Commerce & Industry has greatest opportunity to expand its
operations as it has no Competitors in Gujranwala. It is the only company to support the
trade & business activities in Gujranwala. So, if the management of the company can go
towards its operations.
These are external conditions that are harmful to the achievement of the objective. I have
observed the following threats;
Gujranwala Chamber of Commerce & Industry has faced many threats from unstable
economic conditions in Pakistan, which is a big hurdle in the promotion of trade &
business activities in Gujranwala. As people are hesitate to invest. The international trade
of imports & exports are highly affected from these uncertain conditions.
Gujranwala Chamber of Commerce & Industry has very much effected due to
uncertain political environment in Pakistan, this will also heart the trade & business
Gujranwala Chamber of Commerce & Industry has threat of reducing its members
Inflation
Electricity crisis
This is a big threat for GCCI has lost many of its members every year. If these costs
are not controlled no one can take initiate to start new business is also a threat for GCCI,
Segregation of Duties:
I recommend to GCCI management to segregate duties & only one person can do one job
& he has a superior or supervisor to inspect his work. In GCCI the accountant is not fit for
accountant as well as cashier. There should be separate person for each post in order to
prevent from frauds.
I recommend to GCCI management the competent staff for R & D cell. If GCCI, wants
to promote the industry research work they have to hire the required staff. It is not possible
that only a single person Director General of R &D can handle or conduct the work of
research of different industries in Gujranwala. This job or work required a handsome amount
of employees who gather the data of different industries, identifying the problems & try to
solve those problems of the different industries through research.
Conclusion
At the end, I conclude that the Gujranwala Chamber of Commerce & Industry is
engaged in the promotion of trade & industry is a good organization. During my internship at
GCCI, I have observed that, the company has providing facilities of membership about 7000
business either sole proprietor, partnership or company or body corporate. It provide
numerous benefits to its members, but now it has faced many challenges in the industrial
sector due to energy crisis, political & other challenges which become the grater hurdle in
the way to promote the industries smoothly.
During internship I did the research work in R & D cell & make the Country profile
of five countries, I have highlight the economic conditions & trade or top ten import &export
from these countries in Pakistan. In R & D cell I have also assist the Director General of R &
D in making the news bulletin of GCCI. I have also spent some time in other departments of
GCCI gain the practical experience of those departments. During work in membership
department, membership officer has given me the Memorandum of Analysis & Articles of
Associations, through these documents; I have understood all the working & their
procedures.
I have learned a lot of practical experience during the internship. In this report
after the SWOT analysis of GCCI, I have recommended some factors; if GCCI can
implements those factors the weakness or threats of GCCI are converted into Strengths or
Opportunities.
David,- R., 2008.Strategic Management. 11th ed. Chennai: Pearson Education, Inc. pp 122-
146
< http://www.gcci.org.pk/>
< http://www.highlandschamber.org/mission/>
Lagoschamber, no date. Profile of the Logas Chamber of Commerce & Industry. [Online]
Available at:
< http://www.lagoschamber.com/mission.php>
< http://www.lcci.org.pk/>
The Gujranwala Chamber of Commerce & Industry, 2008. annual report 2007-2008,
Gujranwala: AJM Printers
The Gujranwala Chamber of Commerce & Industry, 2009., annual report 2008-2009,
Gujranwala: AJM Printers
Glossary
B
Bye-Laws:
Co-Option:
Counterfoils:
Delegation:
Dignitaries:
Directories:
Electoral:
Relating to election
Facsimile:
Repugnant:
Incompatible with
Certificate of Origin
Membership Application Form
Application Form For Visa Recommendations
Application for Chamber’s Membership ID Card
Application for Renewal of Membership ID Card