Submitted To:

SIR Naeem Hayat

Submitted By:
Saqib Manzoor Malhi

Roll NO:
Company:

07108011
Sonex Tiles

DEDICATION

I am privileged to dedicate this Internship report to my

loving parents & Prof. Naeem Hayat whose guidance and
consultancy I have been able to complete this challenging
task. He always seems to be fatigueless in spite of
tedious work and different and educational institute. His
unique methods of pouring knowledge into the minds of
students make him unforgettable He always inspires the
students for study.

ACKNOWLEDGMENT

All the praises are for Allah who is the master of judgment
day and who is Merciful, Beneficent to His creation. I have
the pears of my eyes to admire blessing of the
compassionate and omnipotent because of the words are
bound, knowledge is limited and time is short to express
His dignity. I offer my humblest thanks from the core of
my heart to the Holy Prophet Hazrat Muhammad (PBUH)
who is forever a model of guidance and knowledge to
humanity. I wish to express my deep sense of gratitude to
our worthy teacher Sir Naeem Hayat for his co-operation,
valuable guidance and supervision under which this
Internship has been completed. I am also thankful to
management of Sonex Tiles Limited for their help,
association, good wishes and encouragement, which
enable me to complete my Internship. I specially
acknowledge all the persons who helped and support us
in regard to provide information for this Internship directly
or indirectly.

Table of Content
Contents
DEDICATION................................................................................................................ 2
ACKNOWLEDGMENT................................................................................................... 3
Table of Content......................................................................................................... 4
EXECUTIVE SUMMARY................................................................................................. 9
INTRODUCTION......................................................................................................... 10
OVERVIEW OF THE ORGANIZATION...........................................................................11
Vision..................................................................................................................... 11
Explanation........................................................................................................... 11
MISSON................................................................................................................. 12
Explanation........................................................................................................... 12
CONTENTS OF MISSION STATEMENT..................................................................13
Objectives of organization..................................................................................... 14
History of the organization.................................................................................... 15
Nature of the organization..................................................................................... 16
7 reasons why 100% people trust us.....................................................................17
Business Model...................................................................................................... 18
Strength, Beauty & Hygiene...............................................................................19
No Stain............................................................................................................. 19
Business Volume................................................................................................... 20
Employees of the organization.............................................................................. 21
Number of employees........................................................................................... 21
Number of employees of Master Tiles & Ceramics................................................22
Number of Employees of Head Office....................................................................22
WHY SONEX........................................................................................................... 23
Product Lines......................................................................................................... 24
Product Range of Master Ceramics & Tiles.........................................................24
Product Range of Master Sanitary Fittings..........................................................26
Organizational Chart................................................................................................. 27
Principal Bankers................................................................................................... 28
CRITICAL ANALYSIS................................................................................................... 29
4

FINANCIAL ANAYLAYSIS............................................................................................. 30
Ratio analysis........................................................................................................ 31
Profitability ratios............................................................................................... 31
1.

Gross Profit Ratio................................................................................................ 31

Formula:................................................................................................................... 31
2.

Net Profit Ratio................................................................................................... 32

3.

Return on Investment......................................................................................... 33
Liquidity Ratios................................................................................................... 34

1.

Current Ratio:..................................................................................................... 34

2.

Liquid Ratio:....................................................................................................... 35

3.

Capital Gearing Ratio:........................................................................................ 36

4.

Fixed Assets Turn Over:...................................................................................... 37

Interpretation........................................................................................................... 37
5.

Total Assets Turn Over:....................................................................................... 38

Operating Ratio.................................................................................................. 39

1.

Operating Ratio:................................................................................................. 39

2.

Operating Profit Ratio......................................................................................... 40

Efficiency Ratios................................................................................................. 41
........................................................................................................................... 41

1.

Inventory Turn Over:........................................................................................... 41

Interpretation........................................................................................................... 41
2.

Inventory Turnover Days:................................................................................... 42

Leverage Ratio................................................................................................... 43

1.

Debt to Equity:................................................................................................... 43

Debt / Equity ratio is improving due to increase in retained earnings. This ratio is satisfactory............43
2.

Debt to Total Assets:.......................................................................................... 44

Interpretation........................................................................................................... 44
Horizontal Analysis................................................................................................ 45
Interpretation..................................................................................................... 48
Interpretation..................................................................................................... 50
Vertical Analysis.................................................................................................... 51
Interpretation..................................................................................................... 53
Marketing Strategy................................................................................................... 54
5

Direct delivery system........................................................................................... 55

Indirect delivery system........................................................................................ 55
Customers Rights Protection Policy.......................................................................55
Major Competitors of the organization.....................................................................56
Success of the products........................................................................................ 57
OVERVIEW OF DEPARTMENTS...................................................................................58
FINANCE & ACCOUNTS DEPARTMENT....................................................................58
SALES OFFICE..................................................................................................... 58
ACCOUNTS OFFICE............................................................................................. 58
FUNCTIONS OF MANAGEMENT............................................................................... 59
PLANNING........................................................................................................... 59
ORGANIZING...................................................................................................... 59
LEADING............................................................................................................. 59
CONTROLLING.................................................................................................... 59
Production Department......................................................................................... 60
PLASTIC SHOP.................................................................................................... 60
MUTHI SHOP....................................................................................................... 60
MOHRA SHOP..................................................................................................... 60
BRASS SHOP....................................................................................................... 60
GRINDING SHOP................................................................................................. 60
FOUNDARY SHOP................................................................................................ 61
TANKY SHOP....................................................................................................... 61
PATERN SHOP..................................................................................................... 61
FINISHING DEPARTMENT........................................................................................ 61
GOLD SHOP........................................................................................................ 61
DIE SHOP............................................................................................................ 61
COLOUR SHOP.................................................................................................... 61
POLISH SHOP...................................................................................................... 61
ETCHING SHOP................................................................................................... 61
FINISHED STORE................................................................................................ 62
This is a section in which all of the parts which are polished, engraved and colored are stored in
various shelves........................................................................................................ 62
ASSEMBLING DEPARTMENT................................................................................... 62
6

FITTING SHOP..................................................................................................... 62
PACKING SHOP................................................................................................... 62
MAINTENANCE DEPARTMENT.................................................................................62
FUNCTIONS OF MANAGEMENT:.............................................................................. 63
PLANNING........................................................................................................... 63
ORGANIZING...................................................................................................... 63
LEADING............................................................................................................. 63
CONTROLLING.................................................................................................... 63
ADMINISTRATION DEPARTMENT............................................................................. 64
EXPORT OFFICE.................................................................................................. 64
CHECKING OFFICE.............................................................................................. 64
WAGES AND SALARY OFFICE.............................................................................. 64
RESEARCH AND DEVELOPMENT DEPARTMENT.......................................................65
FUNCTIONS OF ENGINEERING DEPARTMENT......................................................65
Management Skills................................................................................................ 65
1- Technical Skill................................................................................................. 65
2- Human Skills.................................................................................................. 65
3- Conceptual Skills............................................................................................ 65
CULTURE OF Sonex Tiles........................................................................................... 66
Dimensions of organization...................................................................................66
CULTURE OF FAISAL SANITARY............................................................................... 67
Factor involved in the weak culture of Sonex Tiles.............................................67
External Environment............................................................................................ 67
Components Affects on the environment of the Sonex Tiles..............................67
Relationship of the Sonex with Stakeholders.........................................................69
DECISION MAKING................................................................................................. 70
A set of 8 steps including................................................................................... 70
Intuitional Decision Making................................................................................ 70
1- SWOT ANALYSIS.................................................................................................... 71
STRENGTHS........................................................................................................ 71
WEAKNESSES..................................................................................................... 71
OPPORTUNITIES.................................................................................................. 72
THREATS............................................................................................................. 72
7

2. PEST Analysis....................................................................................................... 73
1- Political........................................................................................................... 73
2- Economical..................................................................................................... 73
3- Socio-cultural................................................................................................. 74
4- Technological.................................................................................................. 74
RESPONSIBILITY AS A STUDENT INTERN...................................................................75
Accomplishments.................................................................................................. 81
How internship experience impacts on my career.................................................81
Problems............................................................................................................... 82
Conclusions & recommendations for improvement..................................................82

EXECUTIVE SUMMARY
Internship is compulsory for BSc (Hons) to get practical experience in an organization and this
report is based on Internship in Sonex, which are located in GT road Kamokey which is
producing Tiles. My Internship is related to gain practical knowledge in the Sonex Tiles
industries. Sonex is a family owned organization all the decisions are made by top management
which is approved by Chief Executive Officers. The company is meeting with the needs of local
and foreign customers with highly skilled engineers and workforce. The employees in Sonex
Tiles are very much committed with their organization. The problems and their solution are also
discussed in the end. There are some suggestions and recommendation for the management of
Sonex Tiles Industries that how they can compete well with their competitions and enhance their
efficiency. Company should take mentioned actions because those are very much essential for
being competitor in the international market. Report also includes glossary in the end.

INTRODUCTION

Sonex is the trendsetting leader in sanitary fittings, wall and floor tiles and bathroom accessories
in Pakistan. The constant quest for perfection at Sonex spreads over more than 15 years. These
15 years have witnessed unprecedented growth in terms of brand equity, market leadership,
product innovation, human resource development, training and application of reliable
management systems. The combination has really worked.
Sonex today is not only the market leader in Pakistan but is also well positioned to match the
quality and service standards of the world leaders in its categories of business.

10

OVERVIEW OF THE ORGANIZATION

Vision
We see our biggest challenge is not only developing an elite range of products, but also in
creating a general implementation of our ideas and experiences.

Explanation

Vision is the long term target of the organization which are the basic rules and spirit of the
organization and these are the core values of the organization from which the organization can
not deviate during its life time.

11

MISSON
Our company philosophy is Commitment to our Customers satisfaction. Sonex offers a
combination of beauty, technology and functionality at the highest level. A best organization,
commercial support, logistic and customers service are facts of our commitment to our
customers. Discover Sonex classical line and extensive range of Full Round, Quarter Round and
Single Lever Mixtures, Flush Tank and bath room Accessories. We define the requirement of a
new series as economical without simplistic content, individual creativity at an affordable
pricing.

Explanation
A mission statement is for long period of time and it should cover all the aspects and goals which
an organization wants to achieve in long period like 15 to 50 years. But in the Mission statement
of Sonex there are a lot of contents which are missing.

12

CONTENTS OF MISSION STATEMENT

The following are he contends that a mission statement should have;

Customers.
Products or Services.
Markets.
Technology.
Concern for Survival, Growth and Profitability.
Philosophy.
Self-Concept.
Concern for Public Image.
Concern for Employees.

13

Objectives of organization
Sonex Industry is pursuing to their long term goals through identifying and considering short
term objectives. Their corporate objectives are as follows:

To study of capital structure planning and policy.

To study the working capital management of the organization.

To study the working environment.

To study the process by which an organization formulates its objectives, deploys

its resources and strives to attain such objectives.

14

To study the factors that determines the effective span of management.

To study the factors which influence on development of culture of an organization.

History of the organization

Sonex Industries was initially launched as company manufacturing and marketing high quality
sanitary fittings before more than 15 years. They started with providing full bathroom
accessories to their customers. After establishing itself as the pioneer and market leader in world
class sanitary fittings in a short span of just five years Sonex introduced the concept of matching
bathroom accessories in technical collaboration of England and Germany. Received by the
market with open arms, the trend of well integrated designs is constantly gaining popularity ever
since.
In 2002, at a time when the market was flooded with imported wall tiles as the only quality
option, as they called it, Sonex once again took the lead. Based on the worlds top of the line
Italian technology, Sonex launched its range of double fast fired wall tiles. Far superior in quality
and aesthetic values than imported ones, Sonex tiles took the market by storm and forced the
imported tiles out of this market.
Owing to their world class quality, Master tiles were such a tremendous hit in the market, to meet
the increasing demands, production capacities had to be tripled in the year 2007. In the same
year, Sonex added up worlds best plant and acquired best recipes for in house production of tiles
raw materials including frits and colors.

15

Nature of the organization

They are involved in technologically advanced products with a view to provide an ease and
betterment of the society. According to a research launched by them in 2002, a large gap was in
the demand and supply of quality flooring and facing materials in Pakistan. With the increasing
economic development in the country, the gap is widening further day by day. They take it as a
challenge and are all out to face it with commitment to make investments in terms of material
and human resources and fill this gap not only with quality but also with affordability.

16

7 reasons why 100% people trust us

Excellent finish with glittering gold & chrome

Creative designs with beautiful matching colors

Assurance of no leakage

Vast range of variety and colors

Use of automatic plant with latest machinery

Most economical price

Latest innovations

17

Business Model
Sonex, Quality Management System (Q.M.S) is aimed, planned, developed and implemented to
bring excellence in their products and services. Sonex believes that quality adds value and Sonex
has determined to serve their valuable customers with highest quality products in order to
provide best value for their money. Continuous improvement in various management areas based
on the principles of good corporate governance, compliance with related legislation, regulations
and code of conduct are central to our quality policy.
Equipped with most sophisticated plant and machinery based on future technologies from the
worlds top six Italian companies, Sonex Granite production facility is so advance, unique and
innovative, it allows highest levels of manufacturing achievable today in the ceramic industry.

Ranging from gigantic continuous feeding mills to use of robotics for material handling, the
facility is based on futuristic state of the art systems. This facilitates production of a product so
sound technically and aesthetically, it is being experienced for the first time by the world.

It all beings with damp grinding of clays and other raw materials, the process are carried out in
the first of its kind Continuous Ball Mills. Raw material is fed into these mills at one end to get
slip from the other. The slip is separately treated in accordance with the end product requirement.
The process continues either to produce Le Porcelain range or Granite.
Quality of the end product at Sonex, However, is even better than these top world companies.
This is primarily because of our access to better quality raw materials here in Pakistan. Secondly,
Sonex lucky to install a combination of all the latest Italian technologies, being put to work
together for the first time anywhere in the world.
18

Strength, Beauty & Hygiene

Sonex Ceramic Granite Tiles are completely homogenized which means that the color, the
texture and the veins run throughout the thickness of the body, just like natural stone. Unlike
what is available in the market in the name of granite, the colors, designs and textures of ceramic
granite are not superficial. A gift of years of research and the latest in Italian technology, our
ceramic granite is so close to the natural granite stone that it is hard to make out the difference.
No Stain

Completely chemical resistant and easy to clean due to extremely compact superior surface.

Scratch Resistance

Solid and compact body of the tiles provides them complete protection against scratches.

Zero % Absorption

Thanks to complete absence of pores throughout the tile thickness, zero percent absorption factor
promises ease of maintenance with maximum hygiene.

19

2010

2011

TOTAL ASSETS

2630590695 Rs.

2771444540 Rs.

TOTAL LIABILITIES

1631534000

1995403000

NET ASSETS

999056659

776041540

20

Business
Volume

Employees of the organization

As far as my observation is concerned I feel that SONEX strongly believes that the interests of
the Organization and the employees are inseparable. At SONEX they try to create a we culture
where there is mutual trust and respect for each other. They encourage ownership behavior so
that everyone feels responsible for the performance and reputation of the organization. They are
committed to develop and enhance each employees skills and capabilities through extensive in
house and external training programs and job rotations. Through this system employees are well
motivated and provide good work.

Number of employees

I have worked in Sonex Head office. Three business lines are working under this head office.

21

Number of employees of Master Tiles & Ceramics

Sr.no
1
2
3
4
5
6
7
8
9
10

Departments
Abrasive Staff
Color Staff
Mono Staff
Tiles Staff
Grinding Worker
Grinding Staff
Mono Workers
Tiles Workers
Frit Workers
Abrasive Workers
TOTAL

Number of Employees of Head Office

Total staff

22

153

Employees
2
7
81
137
169
19
307
517
31
36
1306

WHY SONEX

As we have been in business since last 15 years, along the way we have realized that
excellent in habit pays rich dividends. In manufacturing, we have the practice of rolling out
the best products with excellent, raw material and trained personnel.
We are using the state of the art technology with the latest equipments, many of which are
imported. We have the engineers to set and reset our production and quality personnel to
oversee that technology gives us what we bought it for. We strive for excellence in
manufacturing through use of this world-class technology.
This excellence will surely be beneficial to the channel of distribution to sell our products
with a confidence that they are selling the best. While you sell our products, you will feel
the difference of the manufacturing excellence we have seeped into our technology and
manufacturing.
What you get from this are long lasting and high quality products. Products that will become
a part of your life and will always be with you in every color of life.

The management of the company wishes to be present in every corner of the country. We
wish to be available at every point in the landscape of India and the world. To make this
vision a reality the Marketing department will be working to
1. Set up a wide network and tie up with most professional growth hungry distributors and
capable dealers.
2. Pick strategic Retailers who can communicate the value of our products.
3. Back up with brand building events so that customers recognize our brand.
4. Advertise and media management for brand reinforcement to create a pull from the
customers.
5. Brand relation to woe the Interior design specialists.
6. Establish a sales force that maintains the growth we are for seeing.
Yes.... Our strategy is different, but we are confident that this is the strategy for sustained
growth and creating a strong brand.
Come... Enjoy the colors that have spread across the world, Like our brand that spreads like
the azure blue sky. Like the turquoise blue water that covers 3/4th of the earth. Like the lush
green fields of the world that feeds every living being.

23

24

Product Lines
Sonex industry has various product lines such as;
1. Sonex Ceramic & Tiles
2. Sonex Sanitary Fittings
Product Range of Master Ceramics & Tiles

Sonex has following wide range of variety.

FLOOR TILES Master has following wide range of variety.
1. Floor Tiles

12*12 Matt Glazed

12*12 Stone Granite

16*16 Matt Glazed

16*16 Granite Polished

24*24 Matt Glazed

24*24 Granite Polished

24*36 Granite Polished

2. Wall Tiles

25

8*8 Matt & Glossy

8*10 Glossy

8*12 Glossy & Semi matt

10*13 Glossy & Semi matt

10*13 Glossy, Semi matt & matt

12*18 Glossy, Semi matt & matt

10*20 Glossy, Semi matt & matt

3. Extra Decorative Products

26

4*12

2.2*10 Glossy & Semi matt

2*8

2.2*10 Glossy

2*10

Glossy

2*12

Glossy

1*1

Glossy

Glossy & Semi matt

Glossy

Product Range of Master Sanitary Fittings

Master Industry has following wide range of Sanitary Fittings

1. Bath Mixers
2. Wash Basin Mixers
3. Wall Sink Mixers
4. Showers, Shower rod, T-Arm and Wastes
5. Bottle Trap and Diverter
6. Bib Cocks and Stop Cocks
7. Complete Sets
8. Economy Compete sets

Royal Set

Aster Set

Eden Set

Esso Set

9. Economy Model
10. Complete bath sets

27

Organizational Chart

CEO

General ManagerGeneral
FinanceManager Sale & Marketing
General Manager ADMIN

Sales Manager
Production Manager
Marketing Manager

Plant Manager
Advertising Manager
Area Sale Manager

IT

28

MANAGER

Manager Administration

Principal Bankers
Allied Bank
KASB Bank
National Bank Limited
Saudi Pak Commercial Bank
Askari Bank
Dubai Islamic Bank

29

CRITICAL ANALYSIS
Practical work is not as same as bookish knowledge. Bookish knowledge provides us an edge to
work better in practical environment. During my internship I learnt that customer is always
right. Main focus should be on observing customers. You definitely learn a lot from your
customers and can have a chance to improve your products and product qualities in accordance
with the needs of the customers. It is very crucial to face people having different perceptions and
to improve their confidence.
During the internship I felt that there is a bridge between educational and professional life. The
things that we have read, the observer has now implemented practically. We must show our skills
and tasks that we have performed during our educational duration. It is very helpful for us and
shows us the new ways to explore our valuable potentials.

30

FINANCIAL ANAYLAYSIS

Financial analysis is very good method to check the company performance and position and
probability and other by using different financial analysis methods. There are three financial
analysis methods. I did financial analysis for previous four years because Sonex provided me
only latest four years data in the shape of balance sheet and income statement.
1. RATIO ANALYSIS
2. HORIZONTAL ANALYSIS
3. VERTICAL ANALYSIS

31

Ratio analysis
A tool used by individuals to conduct a quantitative analysis of information in a
company's financial statements. Ratios are calculated from current year numbers and are
then compared to previous years, other companies, the industry, or even the economy to
judge the performance of the company. Ratio analysis is predominately used by
proponents of fundamental analysis.
Profitability ratios

1. Gross Profit Ratio

Formula:
Gross profit *100 / Sales

Years

32

Gross Profit

Sales

Gross Profit Ratio

2008

67747469

911397870

7.433358276

2009

246238885

1068232571

23.0510557

2010

291113190

1158489421

25.12868782

2011

336309351

1578535476

21.30515

Interpretation
It shows the ability of the firm to meet its operating expenses. Normally higher the Gross Profit is
favorable for the organization. Gross profit in year 2008 is less as compared to and is higher in 2011.
Overall it is satisfactory.

2. Net Profit Ratio

Formula:
Net Profit *100 / Sales
Years

Net Profit

Sales

Net Profit Ratio

2008

-132399376

911397870

-14.52706665

2009

36732122

1068232571

3.438588468

2010

83452916

1158489421

7.203597589

2011

108428559

1578535476

6.868933936

Interpretation
Gross profit and net profit both have the same declining trend. In 2008, the theoretical Net Profit is less
but after that there seems an increasing trend.

33

3. Return on Investment
Formula:
Net Profit *100 / Capital Employed

Years

Net Profit

Capital Employed

Return on
Investment

2008

-132399376

400000000

-33.099844

2009

36732122

400000000

9.1830305

2010

83452916

400000000

20.863229

2011

108428559

400000000

27.10713975

Interpretation
Return on Investment shows how much all the resources of organization are contributing towards profit.
This ratio was also less in2008 but went on increase in 2009, 2010 and 2011.

34

Liquidity Ratios

1. Current Ratio:
Formula:
Current Assets / Current Liabilities
Current
Assets

Years

Current
Liabilities

Current Ratio

2008

492781012

865698811

0.569229166

2009

723792132

879549137

0.822912674

2010

771114543

865689624

0.890751745

2011

860626305

933395100

0.922038593

Interpretation

Current ratio was decreased in 2008. But after that it went in increasing upto2011. It shows that
the position of the company is satisfactory to meet its short term liabilities.

35

2. Liquid Ratio:
Formula:
Current Assets-inventory-prepaid / Current Liabilities

Current
Assets

Years

Current
Liabilities

Inventory

Liquidity
Ratio

Prepaid

2008

492781012

865698811

288276070

334185

0.23584502

2009

723792132

879549137

390031351

243788

0.37919086

2010

771114543

865689624

529345222

0.27927945

2011

860626305

933395100

513984170

0.37137771

Interpretation
In 2011 and 2009 it is increased and decreased in 2008 and 2010. It means SonexIndustry can
meet its short term liabilities efficiently.

3. Capital Gearing Ratio:

Formula:
Long Term Debt / Equity + Long Term Debt
36

Years

Long Term Debt

Equity+Long Term
Debt

Capital Gearing
Ratio

2008

817430569

1285954219

0.635660708

2009

1018901325

1487424975

0.685010231

2010

1110502440

1579026090

0.703283148

2011

1075270250

1543793900

0.696511529

Interpretation
Capital gearing ratio is increased up till 2010 but in 2011 it is decreased. Overall the position of the
company is satisfactory.

4. Fixed Assets Turn Over:

Formula:
Sales / Fixed Assets

37

Years

Sales

Fixed Assets

Fixed Assets Turnover

2008

911397870

1694131874

0.537973392

2009

1068232571

1623257996

0.658079353

2010

1158489421

1549895068

0.747463131

2011

1578535476

1896906283

0.832163133

Interpretation
Fixed assets turn over ratios shows how fixed assets of the company are contributing for generating sales.
An improving trend in this ratio shows better position of the company. The position of the company is
satisfactory and there is no threat to their survival.

5. Total Assets Turn Over:

Formula
Sales / Total Assets

Years

Sales

Total Assets

Total Assets Turnover

2008

911397870

2228485097

0.408976426

2009

1068232571

2475191607

0.431575708

2010

1158489421

2630590695

0.440391363

2011

1578535476

2771444540

0.569571375

38

Interpretation:
Total assets turnover shows an increasing trend.

39

Operating Ratio

1. Operating Ratio:
Formula:
Cost of Goods Sold + Operating Expenses *100/ Net Sales

Years

Net Sales

Cost of Goods
Sold+Operating
Expenses

Operating Ratio

2008

911397870

907709928

99.59535323

2009

1068232571

886870366

83.02221727

2010

1158489421

928431457

80.14155677

2011

1578535476

1323252169

83.82783847

Interpretation:
This ratio is directly linked with the sale of the organization. This ratio was high in 2008 but decreased in
2009, 2010 and 2011.

40

2. Operating Profit Ratio

Formula:
Operating Profit *100/ Net Sales
Years

Net Sales

Operating Profit

Operating Profit Ratio

2008

911397870

3687942

0.404646765

2009

1068232571

181362205

16.97778273

2010

1158489421

230057964

19.85844323

2011

1578535476

255283307

16.17216153

Interpretation:
Operating profit ratio depicts the operating profit after deducting selling and admin expenses. An
increasing trend in the operating profit ratio is favorable. In 2008 it was low. In 2011 it is higher and
satisfactory in 2009 and 2010

41

Efficiency Ratios
.

1. Inventory Turn Over:

Formula:
Cost of Sales / Average Inventory
Years

Cost of Sales

Average Inventory

Inventory Turnover Ratio

2008

843650401

139768991.5

6.036034116

2009

821993686

156252832.5

5.260664225

2010

867376231

217017832

3.996797051

2011

1242226125

261561421.5

4.749271196

Interpretation
It shows that how efficiently an organization manages its inventory. This ratio is continuously
decreasing but in 2011 it is showing increasing trend.

42

2. Inventory Turnover Days:

Formula:
Average Inventory *360/ Cost of Goods Sold

Years

Cost of Sales

Average Inventory*360

Inventory Turnover Days

2008

843650401

50316836940

59.64181002

2009

821993686

56251019700

68.43242309

2010

867376231

78126419520

90.0721241

2011

1242226125

94162111740

75.80110404

Interpretation
The lesser the days the favorable will be the position. This ratio in year 2008 and 2009 is
increased and then increased in 2010 by 22 days but after that it is again showing decreasing
trend in 2011.

43

Leverage Ratio

1. Debt to Equity:
Formula:
Total Debt / Equity
Years

Total Debt

Equity

Leverage Ratio

2008

1683129380

400000000

4.20782345

2009

1898450462

400000000

4.746126155

2010

1976192064

400000000

4.94048016

2011

2008665350

400000000

5.021663375

Interpretation:

Debt / Equity ratio is improving due to increase in retained earnings. This ratio is satisfactory.

44

2. Debt to Total Assets:

Formula:
Total Debt / Total Assets

Years

Total Debt

Total Assets

Debt To Total Assets

2008

1683129380

2228485097

0.755279621

2009

1898450462

2475191607

0.766991314

2010

1976192064

2630590695

0.7512351

2011

2008665350

2771444540

0.724771981

Interpretation
This ratio depicts that how much the portion of debt is there as compared to the assets. This ratio shows
us that weather the organization has enough assets to cover its debt. This ratio was highest in 2009

45

Horizontal Analysis
.

A procedure in fundamental analysis in which an analyst compares ratios or line items in a

company's financial statements over a certain period of time. The analyst will use his or her
discretion when choosing a particular timeline; however, the decision is often based on the
investing time horizon under consideration. A change of Rs. 1 million in sales is not as drastic as
a change of Rs. 1 million in net income, which is computed after deducting expenses.
Horizontal analyses show the comparison among the different years, assuming a year as base
year. By assuming a base year we make comparison of three or five year or on demand. Due to
this comparison it becomes easy to understand the yearly analyses of any firm or organization for
future planning.

46

SONEX TILES AND CERAMIC

INDUSTRIES LIMITED
BALANCESHEE
T
AS ON DECEMBER 31
Rs.(000)
2013

2014

1694131

1623257

Rs.
(000)
2015
2016

ASSETS
Fixed Capital
Expenditure
Tangible Fixed
Assets
Capital Work in
Progress
Deferred Cost
Long Term Loans &
Advances
TOTAL Fixed Assets

102950
_
13009
28563

1735703

11150
14040

15498 18969
95
06
29183 _
1
10312
8333
7437
5578

1751397 18594 19108

75
17

Current Assets
Store & Spares

95823

98502

70469

10700
6

288276

390031

52934
5

51398
4

Trade Debts

69896

98105

93734

17097
6

Advances, deposits &

prepayments

33586

92100

36127

41406

5198

45052

41437

41437

Stock-in-Trade

Cash and Bank

Balances

47

TOTAL CURRENT
ASSETS
GRAND TOTAL

48

492779

723790 77111 87480

2
9

2228482

2475187 26305 27856

87
26

SONEX TILES LIMITED

BALANCE SHEET
AS ON DECEMBER 31
Rs.(000)

Rs.(000)

Rs.(000)

Rs.(000)

2013

2014

2015

2016

500000

500000

EQUITIES AND LIABILITIES

Share Capital & Reserve

Authorized Capital

400000

400000

500000
400000

500000
400000

50000000 ordinary share of Rs. 100/- each

Issued, Subscribed & Paid Up Capital

5000000 Shares of Rs. 100/- each

100000

100000

100000

100000

Un-appropriated Profit

45355

76741

154398

262779

246853

451449

648140

788033

Creditors, accrued & Other Liabilities

289792

305225

328996

444591

Total Current Liabilities

289792

305225

328996

444591

GRAND TOTAL

1082000

1333415

1631534

1995403

Long Term Liabilities

Director Loan

Current Liabilities

Interpretation

Horizontal analysis shows increasing in balance sheets. I have using the year is base for
calculating the rate of growth of the company. In balance sheet Liabilities portion the increase in
un-appropriated profit after 2006 is increasing with rapid rate. Assets portion of balance sheet all
the factors increase. The horizontal analysis shows the endearment in balance sheets and as well
as rate of growth.

49

50

SONEX TILES LIMITED GUJRANWALA

TRADING AND PROFIT & LOSS ACCOUNT
AS ON DECEMBER 31
Rs.(000)
2008

Rs.(000)
2009

Rs.(000)
2010

Rs.(000)
2011

Sales-net

911397

1068232

1158489

1578535

Cost of Sales

843650

821993

867376

1242226

Gross profit / (Loss)

67747

246238

291113

336309

Administration Expenses

35794

38328

38017

50566

Selling Expenses

28265

26548

23037

30459

OPRATING PROFIT:

3688

181362

230059

255284

Other Income

2467

2683

963

6942

Total

6155

184045

231022

262226

133805

145379

143176

145761

1933

4392

5823

OPERATING EXPENSES:

Financial Charges
Workers Profit Participation Fund

Workers Welfare Fund

Net Profit before taxation

2212
(127650)

36733

83454

108430

4748

5346

5795

48

Net Profit after taxation

(132399

31385

77657

108380

Accumulated profit b/f

277755

45355

76741

154398

Accumulated profit c/f to

45355

76741

154398

262779

Taxation

balance sheet
51

Interpretation

Horizontal analysis shows increment in balance sheets. I have using the year is base for
calculating the growth of the company. There is a continuous increase in accumulated profit with
rapid rate. Rate of increase in sale is low as cost of sale but gross profit is high except 2009 as
preceding years taking 2008 as base year. The horizontal analysis shows the endearment in
balance sheets and as well as rate of growth.

52

Vertical Analysis
Vertical analysis is the procedure of preparing and presenting common size statements. Common
size statement is one that shows the items appearing on it in percentage form as well as in rupees
form.
Each item is stated as a percentage of some total of which that item is a part. Key financial
changes and trends can be highlighted by the use of common size statements
The resulting statement of percentage is called a common size statement. The current assets and current
liabilities are given only in total, because ratio analysis studies some of their components very carefully.
Vertical analysis is useful for comparing the importance of certain components in the operation of the
business. It is also useful for pointing out important changes in the components from one year to the next
then comparative common-size statement are presented.

53

Sonex Tiles LIMITED GUJRANWALA

TRADING AND PROFIT & LOSS ACCOUNT
AS ON DECEMBER 31
Rs.(000)
2008

Rs.(000)
2009

Rs.(000)
2010

Rs.(000)
2011

Sales-net

911397

1068232

1158489

1578535

Cost of Sales

843650

821993

867376

1242226

Gross profit / (Loss)

67747

246238

291113

336309

Administration Expenses

35794

38328

38017

50566

Selling Expenses

28265

26548

23037

30459

OPRATING PROFIT:

3688

181362

230059

255284

Other Income

2467

2683

963

6942

Total

6155

184045

231022

262226

133805

145379

143176

145761

1933

4392

5823

OPERATING EXPENSES:

Financial Charges
Workers Profit Participation Fund

Workers Welfare Fund

Net Profit before taxation

2212
(127650)

36733

83454

108430

4748

5346

5795

48

Net Profit after taxation

(132399)

31385

77657

108380

Accumulated profit b/f

277755

45355

76741

154398

Accumulated profit c/f to

45355

76741

154398

262779

Taxation

balance sheet
54

Interpretation

I did vertical analysis of Income Statements of Sonex Tiles. The net sales are increasing trend.
The Gross profit also increasing from previous years. The operating profits also increasing as
well as the net profit increasing from previous years. In the vertical analysis all calculations
calculated on net sales.

55

Marketing Strategy
SONEX has old marketing strategies. There are some problems in their strategies as it is not been
using the modern standards but through their strategies company making more and more profit.
Marketing strategy of master industry is based upon their strong dealership network. Company
has lot of advantages through this dealership network. Dealers finalized company new product.
Dealers helped in the upgrading of existing products.
Company enjoying a good repute in the mind of customers and has been emerged as a brand in
the mind of the customers so the customers also inquire about any new addition in the variety.
Other marketing strategies such as:

Know about the customers demand.

Packing of the product is also according to standard.

Providing better benefits to the dealers.

Well experienced marketing team.

Well oriented Supplies.

Good knowledge about market conditions well.

The SONEX operates through a well oriented network of a number of distributors/dealers. The
company has two types of delivery systems.
1.

Direct delivery system

2.

Indirect delivery system

56

Direct delivery system

In the direct delivery system direct sales to retailers.

Manufacturer

Retailer
s

Customers

Indirect delivery system

In the indirect delivery system, Company using the distribution network.

Manufacturer

Distributor

Retailer
s

Customers

Customers Rights Protection Policy

Customers Rights Protection Policy (CRPP), it is basically a scheme started under the marketing
department. It is prevailing in the market since 2004. According to this scheme they made some
rules to sell their products assuring a win situation between the dealer and the customer. The
slogan of this policy was assuring the dealers handsome profit without exploiting the
customer.
They set the floor price of their product and they restricted their dealers not to sell the product
below that so that their profit can be ensured. And also setting the floor price so that no dealer
can sells the product above that price.

57

Major Competitors of the organization

Sr. no
1
2
3
4
5

58

Local
Super Asia
Master
Style
Emco
Karam

International
China
Spain
UAE
Italy

Success of the products

There are a lot of successful products in the market
Granite Tile:
Sonex is producing high tech granite tiles at compatible prices. These tiles are available in
different colors and designs.
Wall Tiles:
Sonex is also producing good quality glazed tiles. The price range is also affordable and variety
is also available in these tiles.
Sanitary:
Sonex is also very efficient in sanitary. They are making high quality sanitary items in very
distinctive designs and at affordable and competitive prices.

59

OVERVIEW OF DEPARTMENTS
FINANCE & ACCOUNTS DEPARTMENT
It is the main department in Sonex. They arrange the needs for money and regulate it in the organization.
This department maintains the flow of money and checks that where the cash is more needed and how
can utilize the cash resources in the better way. There are two sub departments which are working under
the FINANCE DEPARTMENT. These are;

1-

Sales Office.

2-

Account Office.

SALES OFFICE

This office maintains the flow of cash received by sales. It is the main dealing office in the regular working
time in Faisal Sanitary. Because the cash received and cash receivable due to sales is record by the
Sales Office.

ACCOUNTS OFFICE
It is very important office dealing under the main department of FINANCE. Its work is to maintain all types
of accounts in the organization which are due to the course of business dealings. All types of accounts
are maintained in this department.

60

FUNCTIONS OF MANAGEMENT
PLANNING
Management function that involves defining goals establishing strategies for achieving those goals and
developing plans to integrate and coordinate wok activities. For the purpose of generating more profit, the
Finance & Accounting department has to plan to control over irrelevant expenses is a compulsory and tire
ledger account may serve the tool for this purpose. This department has to plan to control cash flow,
depreciation methods, which method will be better for the preparation o financial statements.

ORGANIZING
Management function that involved what task are to be done, who is to do them, how the task are to be
grouped and where the decision are to be made. They have to organize their accounts in such a way so
that the transaction occurred in one day recorded on the same day and prepared according to the
companies ordinance 1984.

LEADING
The management function that involve motivating subordinates influencing individuals or teams as the
work selecting the most appropriate channel or dealing in any way with employee behavioral issues. They
motivate their employees to do their work regularly and according to the standards and free of any type of
error. They tried to communicate business Transactions and finance formations though selecting the more
effective channels. Mostly they communicate information through written and informal channels.

CONTROLLING
Management function that involves monitoring actual performance and comparing actual to standard and
taking actions if necessary. Chief financial officer and accounts manager monitor the account work to
ensure that they have accomplished their work according to the plan or not. If there is any deficiencies
and errors in the accounts work they have to remove these discrepancies, so that they can provide true
financial position of business to share holders and stakeholders.

61

Production Department
In this department all the activities related to the production are carried. Production is the process through
which the raw material is converted into finished goods. In the Sonex Industries it is the spirit of the
organization. Because the Sonex is a manufacturing concern and is renowned due to its latest designs
and comforts which are provided by them to their customers. So this department plays a vital role in the
success of the organization and no doubt the other all departments are directly or indirectly related with
the Production department and aids it in maintain the production activities. It is a big Organization and this
Department is very important because of its nature. So there are a lot of other departments which are
working under it and are named as SHOPS.

PLASTIC SHOP
In this shop the plastic which is used in different products is melted and then re-shaped according to
requirements.

MUTHI SHOP
In this shop Muthis are prepared and muthis mean the handles and movers which are used in bathroom
accessories like in taps. These are made with solid iron after melting.

MOHRA SHOP
It is a shop in which the small parts and nuts are manufactured which is helpful to tied up the two parts.
Mohra is used in assembling department when different parts are assembled with each other. It is also
useful in movement of lever inside the body of the product.

BRASS SHOP
In this shop brass is melted and different patterns of designs are made of it. These patterns are then
going through the different procedures and it make a final product.

GRINDING SHOP
In this shop they grind the parts to level them.

62

FOUNDARY SHOP
They forge their styles in that shop.

TANKY SHOP
In this shop the Flush Tanks are manufactured. These are made with a thin plastic and there are a lot of
machines working in this shop and these are then gone in the finishing department to make it a final
product.

PATERN SHOP
In this shop models of designs are made in the form of a pattern and these are the base of different
products. This department is directly depending upon the decisions of engineering department.

FINISHING DEPARTMENT
After production the products are directly delivered into this department. They made the products neat
and clean and after some sort of procedures it becomes an acceptable one. We can say that in this
department the products are polished before giving them the shape for final product.

GOLD SHOP
In this shop the golden polish is applied on products. That they become more attractive. There are also a
lot of machines which polished the parts in a golden color.

DIE SHOP
In this shop DIES are manufactured.

COLOUR SHOP
In this shop the products are colored in different ways. In this shop the most important thing is that these
are colored through various techniques. Like on fire, in the water and somewhere with hands.

POLISH SHOP
In this shop the parts are polished through different ways. The polish applied on the parts which are going
to be assembled gave them the original look for the final product.

ETCHING SHOP
In this shop different mono of the organization and the names are engraved on the product which shows
that these are the products made by the Faisal Industries.

63

FINISHED STORE

This is a section in which all of the parts which are polished, engraved and colored are stored in
various shelves.

ASSEMBLING DEPARTMENT
In this department different parts which are manufactured in production department and finished in
finishing department, now get the shape of a final product. Different parts are well tied with each other
that they shaped as a product.

The following are the shops which assembled the parts with each other under this department;

FITTING SHOP
In this shop as the name signifies different parts are fitted with each other. In this department we can see
the original shape of the product. The parts after a lot of processing are get tied together that they made a
real product which is ready to purchase and use.

PACKING SHOP
When the products take the final shape then these are packed in the special made bags and boxes. That
is why the product will reach to the final customer without any damage or defects.

MAINTENANCE DEPARTMENT
During the production process there may arise any defect in the product or parts. The function of this
department is just to remove the defects of the parts, or reject them to enter the product in the processes
if its defect cannot be removed.

64

FUNCTIONS OF MANAGEMENT:
PLANNING

Management function that involves defining goals establishing strategies for achieving those goals and
developing plans to integrate and coordinate wok activities. Material planning section deals with the
material schemes and planning recording the how much material for the month ahead. Usually the
material purchases decisions are also taken by this department.

ORGANIZING
Management function that involved what task are to be done, who is to do them, how the task are to be
grouped and where the decision are to be made. In this section management of Sonex decide how many
units have to produce and they also decide through how many employees will complete the specific order.

LEADING
The management function that involve motivating subordinates influencing individuals or teams as the
work selecting the most appropriate channel or dealing in any way with employee behavioral issues. After
organizing the resources and employees the management of production department coordinates the work
activities for the production process and also motivates employees for the completion of task.

CONTROLLING
Management function that involves monitoring actual performance and comparing actual to standard and
taking actions if necessary. After the completion of other functions of management the management of
production department controls the overall activities of their department by monitoring the actual
production whether it is according to standard or not. They also try to eliminate errors in the production if
any.

65

ADMINISTRATION DEPARTMENT
This is the department which controls and regulates the activities conducting at the work place. So it is the
head department which checks the work of all the employees. There are some other offices which are
working under the ADMIN office. The detail and functions performed by these sub offices are as under;

EXPORT OFFICE
Sonex Industries also deal with other countries. They forward their goods to the INTERNATIONAL
market. They made their sales in MIDDLE EAST. So they made a separate EXPORT office in the admin
area which controls all the activities relating with exports. The officers in this department made contracts
with other countries and transfer the shipment to the other countries. And the amount received from these
shipments is also received by the officers of this department.

CHECKING OFFICE
In this office all the departments work are checked. This office regulates the work of all the departments.
It is the main OFFICE through which all the departments are checked and all the activities are controlled.

WAGES AND SALARY OFFICE

This department is control all the salaries and wages system given to the employees every month. If the
employees are in need of money then this office provide the financial help to them.

66

RESEARCH AND DEVELOPMENT DEPARTMENT

In this department the research and development work is carried for betterment of the Sonex Industries. It
is a family owned organization so their research and development department is not so large. Their
working is just revolving around an ENGINEERING Department. It is controlled by engineering sector.

FUNCTIONS OF ENGINEERING DEPARTMENT

The following functions are performed by the engineering department;
1-

Designs are made by them.

2-

Proposal is given by this department to the higher authority.

3-

If any defect is there in the product then it is the responsibility of this department to remove the
defects from it.

4-

Suggestions of the customers and authority should be considered seriously by this department.

Management Skills
The following are the management skills, which are followed in any organization.
1- Technical Skill
Knowledge and proficiency in a specialized field such as engineering, computers, accounting and
manufacturing etc. This skill is used by the management of Sonex engineering company.

2- Human Skills
Ability to work well with other peoples. There is also lack of human skills in this company to work with
individuals and groups.

3- Conceptual Skills
The ability to conceptualize about the abstract and complex situations. In this organization there is lack of
conceptual skills to face the difficult situations

67

CULTURE OF Sonex Tiles

Actions of management according to omnipotent view or symbolic view Symbolic view Faisal Co. thinks
that much of organization success or failure is due to external forces that are out of manger control those
external factors are

economy

customer

governmental policies

competitor

industry condition

technology

Dimensions of organization

Attention to detail

Innovation and risk taking

Stability

Outcome oriented

68

Sonex culture

People orientation

CULTURE OF FAISAL SANITARY

The culture of Sonex Tiles is weak because of key values are not deeply held and widely shared
And also have little influence on organizational members

Factor involved in the weak culture of Sonex Tiles

Low reward and salary system

No clear cultural values and beliefs

Disadvantages of weak culture:

Low commitment toward the organization

Slow the organization performance

Difficulties in routine work of organization

External Environment
The forces and institutions outside the organization that potentially can affect the organization.

Components Affects on the environment of the Sonex Tiles

1- Specific Environment of Sonex Tiles
Forces that has a direct and immediate impact on the Sonex Organization, e.g. tax authorities,
suppliers, customers, competitors etc.

69

2- General environment of Sonex Tiles

There are many socio-cultural, political, demographic, technological, economical and global
conditions that have impact on the Faisal Sanitary culture.

Tax Authorities

Suppliers

Sonex Tiles

Competitors

70

Customers

Relationship of the Sonex with Stakeholders

All the parties and constituencies in the organizations external environment that are affected by the
organizations decisions and actions. Normally the following group of people influence by the actions and
decisions Sonex Tiles.

Share Holders

Community

71

Employees

Customers

Sonex Tiles

Government

Suppliers

Competitors

DECISION MAKING
A set of 8 steps including
1. Identifying of a problem
2. Identification of the Decision Criteria
3. Allocation of weights to Criteria
4. Development of Alternatives
5. Analysis of Alternatives
6. Selection of Alternatives
7. Implementation of Alternatives
8. Evaluation of Decision Effectiveness

After studying the management strategies Sonex I conclude that their decision making process is not
according to the management rules. Their mostly decision making depends upon personal experience
and judgments; therefore their decision making is not rational one.

Intuitional Decision Making

In Sonex mostly the process of decision making on the basis of personal experiences and
accumulated judgments, this is not a good practice for all kind of decisions.

72

1- SWOT ANALYSIS
What is SWOT?

Strength of the company

Weakness f the company
Opportunity of the company
Threat of the company

STRENGTHS
Strength means characteristics of the organization which are helpful in achieving the
objectives of the organization.

Skilled employees are working.

Handsome Salaries are paid which make employees satisfied.

Fully cooperative because of benefits they pay to their employees.

Latest technology is used to make every single part of their product.

WEAKNESSES
Characteristics of the organization which make the organization poor in achieving its
objects.

No proper training provided to their employees.

Most of their labor is on contract. For which they cannot get the output up to the requirement.

Wastage ratio is average rather than zero error.

Suppliers give the late delivery.

73

74

OPPORTUNITIES
External conditions that is helpful for the organization to achieving its objectives

Wide ranges of products make them unique.

Market growth helps them to enhance their sale.

Oldest company in the Gujranwala which gives them vital edge to their competitors.

Company is ISO certified which make them strong.

THREATS
External conditions that is harmful for the organization to achieve its objectives.

Government policies changes time to time.

Quantity war rather than quality war which is the major threat to the organization.

High interest rate is paid by the organization on debts taken from banks.

75

2. PEST Analysis
PEST Analysis is second analysis which we have done for Sonex and it includes the
followings:

1. Political
2. Economical
3. Socio-cultural
4. Technological factors.
1- Political

Political factors include government laws, rules and regulations under which a firm must
operate. But, in Pakistan, there is no stability of government and this also has effect on Sonex
Tiles. For example, government play role in different ways that are interest rates on debt,
import & export procedure and taxes. Interest rates on debt are increased from last year this
is negative impact on Sonex because they have to pay more interest to bank for their debt.
Political instability creates many effects on Faisal industry...

2- Economical

Economic factors affect the purchasing power of customers and the firm's cost of capital. If
we talk about inflation rates, its understood that if inflation exist it means there are high
prices of products and it will affect the purchasing power of customers for Sonex Tiles
products. Wage/price control list is another factor of economic forces. The Govt. sets the
price control list but according to Sonex industry, Govt play no role for the prices of
products.

76

3- Socio-cultural

These factors affect customer needs and the size of potential markets. Life style of people
change day by day.Every day people are moving towards new trends. Now people also
want to see their bathrooms stylish and luxury. So with changes in lifestyle, Sonex
industry is getting more competition to create competitive products and getting more
demands from customers. They have a name in the market so they need to develop their
product according to the standard of customers. In Pakistan, growth rate of population is
high. As population increases it means no. of families and no. of family members are
increasing. Moreover, in our society, the trend of separate homes is also increasing and
its a positive impact on Sonex industry because the demand for sanitary products will
increase. Consumer activism is also increasing day to day. Customers are becoming
aware with the products quality, price, demand, and trend. But if customer is well aware
about products, in this case Sonex industry needs to be more efficient to satisfy their
customers through quality and cost effective products.
4- Technological

Today we live in a time of continuous technological change. Technologies reduce the

product cost due to advantage of economies of scale. Technological environment changes
rapidly. So this creates the need for new designs in products because people demand
something new every time Sonex developed products which were not common few years
ago. They are competing with their competitors and providing quality wise products in
new designs.

77

RESPONSIBILITY AS A STUDENT INTERN

Activities Undertaken
Date

Deptt.

30/07/201
2

Sale

31/07/201
2

Sale

1/08/2012

Sale

2/08/2012

Sale

3/08/2012

Firstly Mr. Asif introduced me with all the staff and briefly told me
about their company and their Products. I also examine how they
work.
2nd day my Site Supervisor told me how they maintain record of sale
department and he saw me whole month sale record. I study sale
record whole day to learn how they record the entries in sale books.
This day I study how much type of Products Company make. They
make two types of Tiles. (1) Floor Tiles (2) Wall Tiles. They make
two types of floor tile (1) Polish Tiles (2) Matt Tiles.
This day they told me about their Product Quality. Three types of
Quality they have for each Product
(1) Prime Quality ( High Quality)
(2) Standard Quality ( Medium Quality)
(3) Commercial Quality ( Low Quality)
Weakly Holiday

4/08/2012

Sale

5/08/2012

Display
Center

78

Activities

I study the size of the tiles. Two standard sizes of floor tiles that are
(1) 16 x16 mm
(2) 24x24 mm
They can customize it if dealer give very large order otherwise they
make standard size. Only 1 standard size of wall tile 10 x 13.
I visit display center of sonex tiles where they kept samples of all
tiles. They told me about quality and difference of all tiles. They
also told me about the codes of all tiles. They give a special code of
same type of tiles.

Activities Undertaken
Date

Deptt.

6/08/2012

Sale

7/08/2012

Sale

8/08/2012

Sale

9/08/2012

Sale

10/08/201
2

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I study DPR (Daily Production Report) that day. Factory Supervisor

daily sends DPR to the sale department. In DPR there is all detail of
production of that day. They also give me instructions about DPR.
I study their Inventory book that day. Where they maintain all the
record of their stock they had.
I study how they take orders from the customers. They made
productions according to the orders from customers. They dont
make extra stock. Some customers directly call to sale office but
mostly customers contact their Marketing Managers.
Marketing Managers told about their orders to sale Department than
they write order according to their inventory Book.
Weakly Holiday

11/08/2012 Sale
12/08/201
2

Activities

Sale

That day I study in which cities they sell their product. They sell
their products all cities of Punjab and Sindh. They Have marketing
Managers in all cities of Punjab and Sindh. They dont sale their
product in Baluchistan and Khaiber Pakhton khawa on credit.
I study their all type of vouchers that day and I also study how they
fill that vouchers.

Activities Undertaken
Date

13/08/201
2

Deptt.

Activities

Inventory
Department

On the first day in Inventory Department Manager himself

introduced all the inventory deptt. And staff of inventory
department. I was shown all the chemical rooms and labs containing
chemical dealing equipment. Then I was shown the raw material
which was being converted into finished goods. Then I was shown
dumping of finished goods which was managed and organized in
daily bases.

14/08/201
2

14th August Holiday

15/08/201
2

Inventory
Department

16/08/201
2

Accounts
department

17/08/201
2

Weakly Holiday

18/08/201
2

Inventory
Department

19/08/201
2

Inventory
Department

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It was my duty to give opening values of stock before the Manager

come to office. I had to submit closing values to the C E O before he
goes from office. All the reports are compared physically with the
original inventories.
On that day I submitted opening stock report of raw material and
finished goods. I was introduced to the accounts of the company. All
the accounts of incoming and out flow of cash and raw material.
Few accounts of company were dealt much efficiently and were
given much priority. I arranged all the priority customers in a
separate account and highly rated them.

I again move to stock management. New raw material was added to

the inventory. A new delivery of finished goods was dispatched on
the same day. I was told how to make delivery voucher. Stock was
rearranged after delivery.
On that day rearranged all the stocks of raw material and finished
goods. I checked out all the reports of stocks and then compared
them physically. Few errors were in the raw material which was
resolved after comparing it with production mangers report.

Activities Undertaken
Date

Deptt.

Activities

20/8/201
2

Eid Holiday

21/8/201
2

Eid Holiday

22/8/201
2

Eid Holiday

23/8/201
2

Another new department for me in the same week. I assisted in

making of products of company. I was a day full of enjoyment and
with lots of experience regarding tiles industry. Whole day I saw how
they convert their raw material into final Product. Production
Manager give me lot of detail of their production.

Production
Department

24/8/201
2

Friday Holiday

25/8/201
2

Sale
Department

26/8/201
2

Sale
Department

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After Friday Holiday I again worked in sale department. It was good

day for me because I gain lot of knowledge that day. I entered DPR
data into their inventory book. I was doing this first time so I took
extra time for doing that but it was a good experience.
It was also a very knowledgeable day for me. That day I took orders
from customers at mobiles and personally. After wrote detail of
orders I made vouchers of that orders. It was a very good experience
for me.

Activities Undertaken
Date

Deptt.

27/08/201
2

Sale

28/08/201
2

Account

29/08/201
2

Inventory

30/08/201
2

Account

31/08/201
2

I study how they take orders from the customers. They made
productions according to the orders from customers. They dont
make extra stock. Some customers directly call to sale office but
mostly customers contact their Marketing Managers.
On that day I submitted opening stock report of raw material and
finished goods. I was introduced to the accounts of the company. All
the accounts of incoming and out flow of cash and raw material.
Few accounts of company were dealt much efficiently and were
given much priority. I arranged all the priority customers in a
separate account and highly rated them.
On that day rearranged all the stocks of raw material and finished
goods. I checked out all the reports of stocks and then compared
them physically. Few errors were in the raw material which was
resolved after comparing it with production mangers report.
That day I firstly learned how to make Sale Tax return. He told me
how to make Sale Tax return. Then I made sale tax return. In sale
Tax return we less Input from Out Put Tax. Then I submitted to the
chief Accountant of the company. He checked all returns.
Weakly Holiday

01/09/201
2

Inventory

02/09/201
2

Reception

82

Activities

I again move to stock management. New raw material was added to

the inventory. A new delivery of finished goods was dispatched on
the same day. I was told how to make delivery voucher. Stock was
rearranged after delivery. That was very busy day.
It was a new experience with me. That day my duty is on Reception.
It was very interesting for me. That day I picked lot of call of
dealers, customer, distributors and managers and transfer them to
CEO office phone. I learned very much that day how to deal people.

Activities Undertaken
Date

Deptt.

3/09/201
2

Pay Roll

4/09/201
2

Pay Roll

5/09/201
2

Pay Roll

6/09/201
2

Pay Roll

7/09/201
2

That day I meet with them and asked about their major duties and
other duties related to their department and the duties associated with
their other departments. He told me about their major duties that they
are controlling all the employees wages , registering the employees
and entering the employees data, issuing the short time employee
card to new comers , all the data related to employees work ( working
hours, leave, over time ) and pinning all the order forms receiving
from the DCO ( delivery Chillan officer ). That I got some work from
the uncharged of admin department. I filled all duty order forms
manually.
This was the day to print out all the Cards (short term employees
card). So the head of this department asked me to write down the
names of those employees whose card are ready to print out. This day
we got a big problem from an employee. He complained that he
didnt get his salary from last month. Our system was showing that he
has collected his last moth salary. After spending much time we find
that there was another employee with the same name who worked
only for 15 days but got the salary of full month. But actually this
was the salary of that employee who was complaining us. That was
our department mistake. We resolved problem and paid his full salary.
Today he asked me to un-pin all the employees ID cards photo copy
and 2 pictures. I did it and he give me new task to write all the
information on the Employees registered form and attach a ID card
and 2 pictures on the form 1 picture on the real form and 1 picture on
the copied form that was created by the carbon paper .
That day I made salaries of employees according to their attendance.
I also insert that how many day they worked over time. That was very
busy day for me because it is very difficult to made that and it was
very time consuming.
Weakly Holiday

8/09/201
2

Pay Roll

9/09/201
2

Pay Roll

83

Activities

Today he asked me to collect the employees attendance register and

write down the all employees attendance and absent in number form.
And after he asked me that I will speak the related employee
information and he will add all the information in the computer.
It was my last day of internship. I did not do much work that day. I
thanked all who contribute me to learn all work in factory. That day i
write down the attendance of employees only.

Accomplishments
My attainments from this internship program me to be confident and practical oriented feelings
are achieved. During my internship at Sonex Tiles I got the experience of being interacted with
the employees. I have achieved the real job exposure and learn how to accomplish the needs of
your job at the platform of tough competition. This internship program gave me an opportunity
to relate my bookish knowledge with the practical and real world implications. Through this
internship I definitely polished my communication, analytical and interpersonal skills. I also got
the exposure that how to deal with people while deciding your business activities.

How internship experience impacts on my career

The Internship was an opportunity for me to observe a small practical field i.e. Sonex Tiles.
Though it was a little time activity but it will always provide the ladder to my success in future
endeavors. After obtaining the final Transcript / Degree, the very first interviewer you will see,
asks the questions from this practical experience you will have which is your Internship and if
you get through from this first obstacle means that the way of success is started. It will be a
milestone for me after the completion of my degree as the first question is always asked about
your internship during your first interview.

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Problems

Electricity shortage

Economic de-establishment

China industry products

Increase in Tax rate

Employees and peers conflicts

Unemployed labor

Bradri system

Centralized decision making

Conclusions & recommendations for improvement

Sonex Industry has superior look on his product as competitor in the market. Sonex industry has
good worth in the markets. During my internship I had learn very much in practical accounting
operations as well as sales and other operations.
Sonex industry has providing well quality products. Structure of Sonex industry has well
oriented and matched with international standard. Sonex industry has well preferable
departments. Sonex industry has all departments like finance department, marketing department,
accounts department, admin department, production department and human resources
department.
Ratio analysis is very important to understand the financial position of the any organization. In
ratio analysis I explain from different angles the soundness of Sonex Industry's financial
position. Sonex Industry has strong financial position. This strong position may be due to better
85

management or group of industry. What so ever the reason is one thing is clear that Sonex
Industry has a strong position in market over their competitor and also a name of better quality
producing in the fields of sanitary product?

Strategies of marketing department are successful in market. But finance department have some
improvement. During my internship I faced some problems in finance department.
Overall Sonex Industry has bright future. Sonex has big market share locally as well as
internationally.

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