Haji Peer Bukhsh Fazal Raheem

Internship Report- SPRING INTERNSHIP 2011

Name
ID No
Contro| No
Ma[or I|e|d 8S (Io|nt nonors)
Lconom|cs and I|nance

Company where |nternsh|p was served
M]s na[| eer 8ukhsh Iaza| kah|m
Durat|on
Irom Apr|| 4
th
2011 to May 13
th
2011

keport based Cpt|on 1 ___ Cpt|on 2
Due date of the report Iune 1
st
2011
keport subm|tted on November 30
th
2011

1A8LL CI CCN1LN1S
| reface l
3 Department(s) to wh|ch Attached 1
31 Iunct|ons(s) of the Department 2
32 kespons|b|||t|es ne|d |n the Department(s) 4
4 1heor|es Learned and the|r App||cat|on 6
41 1heor|es Learned at Co||ege 6
42 New 1heor|es Learned dur|ng Internsh|p 8
S Conc|us|on 9
|


| r e f a c e

1hls reporL explalns my worklngs and Lhe learnlng experlence aL na[| eer 8ukhsh Iaza| kah|m
1he company was esLabllshed 60 years ago ln Lhe year 1947 ln karachl aklsLan however lLs
hlsLory ls much older Lhan LhaL 1he rooLs of Lhe company were lald down ln Lhe orL ClLy of
kolkaLa under Lhe 8a[ ln 8rlLlsh lndla and Lhe name Pa[l eer 8ukhsh lazal 8ahlm was
esLabllshed wlLh Lhe orlglnal concern exporLlng Lo oLher sLaLes and porLs ln Lhe 8rlLlsh Lmplre
across Lhe world

AfLer Lhe parLlLlon of Lhe subconLlnenL and Lhe creaLlon of aklsLan Lhe company was
lncorporaLed ln karachl (Lhen Lhe CaplLal of aklsLan) and dlverslfled lnLo Lhe buslness of splces
fresh frulLs as well as dry frulLs across all provlnclal caplLals ln aklsLan (Lahore eshawar and
CueLLa) whllsL keeplng hold of Lhelr orlglnal leadershlp ln 8lce

ln 1989 Lhe company expanded lLs operaLlons Lo caLer Lo Lhe exporL markeLs as well (lnlLlally Lo
nelghborlng/reglonal counLrles such as 8angladesh and MlddleLasLern orL clLles buL as of
presenL Lhey exporL rlce across Asla Afrlca Lurope and Amerlca

1hls reporL also serves as a prerequlslLe for graduaLlon program compleLlon aL lo8M 1he reporL
prlmarlly dwells on Lhe dally pracLlces worklng envlronmenL and Lhe learnlng LhaL l have
pracLlced upon and galned when dlfferenL scenarlos pop up and have Lo be caLered Lo
accordlngly l have Laken Lhls opporLunlLy Lo presenL some of my commenLs and
recommendaLlons whlch may help Lhe organlzaLlon prosper even beLLer and aL a qulcker pace

l belleve my experlence wlll acL as a solld base for my professlonal fuLure and LhaL Lhls reporL
shall serve as a deplcLlon of my undersLandlngs and shall be able Lo represenL Lhe essence of
Lhe lnLernshlp program l also wlsh Lo draw lnsplraLlon from Lhe growLh experlenced by such a
company and wlsh Lo emulaLe such an efforL ln all spheres of llfe personal soclal as well as
professlonal




1


Department(s) to which Attached


I eparLmenL Sa|es and Accounts

Supervlsor's name Mr Nas|r I|yas 8ukhsh

eslgnaLlon nead of Department

uraLlon S Weeks (Sa|es)


II eparLmenL Sa|es and Accounts

Supervlsor's name Mr Nas|r I|yas 8ukhsh

eslgnaLlon nead of Department

uraLlon 1 Week (Accounts)

2


1 Functions of the Department (s)

Sales

The idea oI having a sales department is not only to have a properly channeled down distribution
network but also to have a representation in the market and conduct exploratory researches. In
their research sales department will collect data Irom the market by conducting interviews oI an
inIormal type with the wholesalers in the market. Since it is an established branded product
processing company the department does not involve in advertisements or any other sort oI
outside promotions, as it directly sells to other traders and international partner concerns which
are already Iamiliar with the brand and its quality so an extensive promotion campaign is not
required, the organizations more concern is about the distribution oI the product.
The job oI interaction with customers is oI the sales department. They need to make sure iI sales
are being conducted in an organized manner, daily reports and being submitted and track oI sales
and sales IulIillments are being satisIyingly done. A regularized track oI how the product is
distributed in the market iI consumers are satisIied with the quality, standards and the packing
because the main target market is oI export directly by the organization or indirectly via other
traders in the market.
A synergy oI departments in the company is kept especially by the sales department which is
very important as to cope up with Iinances as well as quality standards as daily prices are issued
and processing patterns are changed season wise. AIter all things said and done the company is
there to make money and in such a wholesale market prices Iluctuate on a daily basis, so orders
are booked daily on Iuture delivery basis so perIect inter-department relation is a must, a weak
communication between the sales and other departments will hit the proIit rolling. The sales
team works according to clearly deIined objectives, all sales persons have to report back to the
manager regarding their activities.







3


Accounts

The accounts department at Haji Peer Bukhsh Fazal Rahim mainly looks aIter book keeping
and maintenance oI records.
Generally the Iollowing records are maintained Ior the day to day discharge oI diIIerent
Iunctions.
1. !ay orders, bill payment, export invoicing, !urchase Orders, Funds Registers, Control
Statements, ledger maintenance.

2. Cheque issuance, deposits, Cash Book, Reconciliation statements oI accounts, Ledgers,
international banking.

3. Budget statements, Budget requirements, yearly bonus and increment calculation,
Statement oI expenditure, Control statements.

4


2 Responsibilities held in the Department (s)

hen I joined Haji Peer Bukhsh Fazal Rahim my role was that oI an Internee salesperson and
later I also took a glance into the accounts department. The Iood processing industry is the heart
beat oI our country and value addition in this industry will not only Ietch us better revenues but
also a global identity. Having said that, managing such a concern in the current global economic
environment is not a walk in the park diIIiculties and hurdles give their Iair share oI time.
However the experience in itselI was thoroughly learning which within the short span oI six
weeks have completely changed my thought process.
Initially I was assigned with a basic inIormative assignment , on the very Iirst day I was made to
go around the market and collect inIormation on diIIerent type oI rice available in the market
Irom pure white to yellow, basically at Iarmer level only two type oI rice are harvested coarse
and Iine, both oI them will Iurther be processed in to several types which may be Iine white,
super basmati, basmati, Iragrant non- basmati, long grain, long grain 25 broken, long grain
15 broken, 4.5 mm category, yellow kernel, chalky kernel, cargo rice and the number oI type
go Iurther. Each company has its oIIering in diIIerent types oI products with several names, Ior
example !eer Bukhsh major product, 'SAFRON GOLD which is a super kernel basmati rice in
the extra long category having a cylindrical shape, it also has a brand name 'KHUSHBOO
which is a basmati rice with high Iragrance and comes in the long category.
Administratively my supervisor made me realize the need oI organization procedures and the
procedures pertaining in the company. A pattern oI sales conducting is set, as daily meeting is
made to discus the limitations and policies oI how sales attitude is to be kept, pricing,
international selling policy e.t.c. Every product has diIIerent speciIications and targets diIIerent
audiences.
The customer is seen mainly in geographical manner, Ior example !akistani customer is not
interested in Iiner type oI rice. The !akistani customer is price conscious and majorly small and
Iat rice is a mass selling item.
International the Arab peninsula and the biggest customer oI our rice, Saudi-Arabia, Kuwait and
the UAE, an export oI US $ 2.0 billion is made. So the audience is subdivided into categories
that have diIIerent needs.
I was assigned to keep in touch with the sales team in Karachi an keep up with the status every
day. I used to gather daily occurrences and inIormation Ieedback given by the sales persons
make pointers and brieI it to my supervisor Mr. Nasir Ilyas. Later I was made to visit with the
sales team and was made to observe how sales are done; how things went about; and how
Ieedback is taken.

S


Huge compounds oI rice wholesaler were visited to observe the buying pattern oI the customer. I
also became a small part oI the team; I also conducted an exploratory research on the Karachi
buying pattern and gathered inIormation regarding type oI grain sold in this market. I also took
part in the everyday sales meeting.
Relationships:
O !recise record keeping oI sales pattern seasonally.
O Creating a long term partnership with reliable customers which have a healthy reputation
in the market.
O Keeping in regular correspondence with the international associate, although
internationally quality selection does not change quite rapidly but the company has to still
reIresh its international trade partners about new developments etc.
O Direct Communication with customers
As an internationally recognized export based Iirm, to understand global sales policy the sales
team has to coordinate with the Iinance and accounts department to know the policy oI the
company about its rigidness about payments.
As the procedures and customers are set not a matter oI lost sales that a sales person may have to
give credit to newer customers, the company is meeting its sales target. The actual sales made in
this market are one which retrieves physical revenue, because deIaulting is a normal practice
especially in local market.
SpeciIic learning opportunities included:
1. The payment system procedure and revenue allocation.
2. How the price oI a product is calculated iI credit is extended Irom 30 days and more and
a separate rate is set Ior more the 50 days.
3. Learn how expenditure ledgers are vouched on a daily basis
4. Keeping extreme care in allocating revenues to what accounts and keeping track oI the
revenue.




Theories Learned and their Application

1 Theories Learned at College

The detailed learning oI my courses taken at IOBM, were practically being implemented. More
importantly courses such as organizational behavior, sales management, business
communication, Iinancial accounting, !rinciples oI Management, personal management, cost and
management accounting are so closely related to the proIessional Iield that I was already quite
Iamiliar with the idea oI their application.
It was helpIul Ior me to categorize my work with my courses; a brieI outlook is as Iollows;
Financial Management
For the Iirst time ever the concept oI Iloat and the way the sales directly correlated with the
company`s credit policy was experienced by me. In class we merely studied the concept but here
we saw that relaxing the credit policy meant more sales however this at the same time led to a
lower receivables turnover thus more oI our capital was caught up.
To combat with this decreased turnover and an increased amount oI capital being held up I
learned here how the company had to devise a diIIerence pricing structure Ior the diIIerent credit
periods so as to be able to take the carrying costs into account.

Principals of Management
Strategy is something that every person in the organization sets to achieve his goals. At the same
time, small details help us implement that strategy and assess the end results based on criteria. I
saw here at Haji Peer Bukhsh Fazal Rahim how those same strategies are utilized to
motivate sales people to achieve targets thus aligning their own personal strategy with that oI
the company.
Business Communication
I Iound Business Communication to be a very eIIective course as I saw how organizational
memos etc. are Iorwarded as well as how letters must be addressed and Iormulated to be sent to
diIIerent categories oI clients.
The 3x3 writing process that we covered in Business Communication over here really was a
clever insight as we saw how diIIerent people would have to be addressed diIIerently. The
!akistani consumer would have to be addressed regarding how they would be able to save upon
their costs. The Ioreign consumer on the other hand would have to be addressed taking into
account the superior quality oI the rice at hand Ior them the more important part when dealing
with a company was actually the history oI the company. Thus we saw that when writing a letter



or a proposal the end consumer must be kept in mind and the end audience and their anticipated
action was clearly kept in mind when Iormulating letters.
Introduction to Business Finance:
Again the concept oI credit periods and relaxations as well as receivables turnover was
practically demonstrated to me and I really appreciated the knowledge oI Iinance that we
received in school here at IoBM was not rudimentary but a very concise Iorm that conveyed the
concepts to us completely to borrow a phrase Irom Urdu the IBF teacher here truly succeeded
as 'unhonay darya ko koo:ay main band kardiya and taught us very well.
Computer Applications
During the Iirst phase oI my internship, I was required to create a database on MS Excel Ior
recording the data regarding the sales. orking on MS Excel was comparatively easy Ior me as I
had already learnt the basics oI this program during the course, Computer Applications. I was
also required to develop various Iorms and documents using MS ord. Also, the Iinal Directory
that I made required extensive use oI ord. Most oI the computer related skills that I had learnt
in my Computer Applications class came into use here.
Financial Accounting II:
The accounting concepts and theories I learnt during my academics helped me a lot in
understanding the Iinancials. I was able to integrate the available Iinancial inIormation.
It was a unique task and my understanding oI concepts helped me learn them quickly.
Topics in Macro Economics
This course with all it pre-requisites have taught me Macro Economics variables and how they
individual variables can impact the economy. This really helped me to make analysis oI the
eIIect oI the policy rates, eIIect oI government borrowing Irom the public and Iinancial
institutions, the eIIects oI Balance oI !ayments, eIIect oI Current account deIicit/Surplus, eIIect
oI Fiscal deIicit, and eIIect oI the inIlation on the economy. Each variables eIIect on other
economic variable taught have made my conceptually strong in analyzing the eIIect to Business
side Irom changes in the economic variables.
Organizational Behavior
This course helped me learn how to interact with individuals and how to manage while working
in groups. It also helped me understand how the entire organization is run Irom top management
to middle management and to the lower staII.
The other main thing was that an organization cannot run until you work hand in hand with your
sub-ordinates who are closer to action. I am really grateIul that I never had any unpleasant



situation between me and my department or any other department. Just because this course has
taught me through its theories how can one react in diIIerent situations and how we can tackle
them careIully without making our reputation in stake.
2 New Concepts acquired / Theories learned during the Internship
The New Concepts that I acquired during the internship were that oI coding and record keeping
and Iiling. This was a concept that we had not covered here at CBM. Every letter that is written
must be coded with a speciIic document number and entered into a Iiling system. The
organization oI the Iiling cabinets too is based upon this procedure and through it.
This system oI organizing data was not covered in any course at CBM and aIter discussing it
with my other peers they too conIirmed such phenomenon which was a part oI everyday liIe was
not covered at all.
This new concept oI organizing all correspondence and the central role the Iiling cabinet played
even in this inIormation age was a new concept to me.
The additional concept that I picked up on the job that I wouldn`t have picked up otherwise was
that oI the importance oI trade bodies and other pressure groups which were only covered in a
rudimentary manner in college courses.
Here I realized the power that having a trade body in this case REA! (Rice Exporters
Association oI Pakistan) oI which the senior management oI this concern was a managing
committee member oI truly added a great amount oI clout to getting things done Ior the company
and sped processes up which could not have happened otherwise.
This was practical knowledge that I acquired here at the Iirm which I wouldn`t have learned
otherwise in any theoretical Iorm.




Conclusion
I really admired how organizations grow and I learnt here on the job how the organization that
Iounded itselI as a small entrepreneurial venture grew to a corporate structured organization. It
was here that I learnt diIIerent concepts such as the importance oI oIIice organization as well as
automation and the amount oI opportunities that being a member oI corporate trade bodies opens
up Ior organizations.
I was also able to look at certain practical applications oI theoretical concepts that would
otherwise have eluded me completely. It was there that I was able to appreciate the applicability
oI the courses that have been taught to us here at IoBM.
It was at this internship that I realized that liIe is not a bed oI roses` and perhaps Ior the Iirst
time I appreciated my Iather and all other individuals who have to work to make a living. The
best luxuries oI liIe are undervalued until lost and here at this internship I realized what a dream
world I have been living in my entire liIe and the college experience at pitIalls and stress that we
picked up during exams where merely preparing us Ior the trials and tribulations that lie ahead in
liIe when we have other responsibilities in liIe than merely managing social events.
I viewed this internship as the perIect buIIer between my academic and my proIessional careers
and I aim to maximize on the knowledge and experience gained Irom this internship and hope to
capitalize upon it Ior the betterment oI my Iuture proIessional career.
I would take this opportunity to thank Almighty Allah without whose guidance I would have
been nowhere in liIe, my own parents whose eIIorts have made me this able, my teachers who
equipped me with the knowledge to continue ahead with such an endeavor, the internship and
placements department here at IoBM who enabled me to move ahead with such an internship and
lastly and oI course most signiIicantly my immediate boss here Mr. Nasir Ilyas Bukhsh who a
senior in every sphere to me took upon the role oI a mentor and guided me through these past 6
weeks whilst providing me with the advice or naseehat` oI an elder throughout and his
invaluable insight into liIe is what I take away Irom this internship.