Internship Ghazi Tractor

Al-Ghazi Tractors Limited
Research Project
AL-GHAZI TRACTOR LIMITED
SUBMITTED TO
Mr. Riaz Hussain
Submitted By
M. Nauman Khan (05)
Tahir Shafiq (31)
M. Baqir (45)
M. Imran Sajid (33)

Ali Ahmad (22)
Shahid Rasoul (19)
Institute of management sciences B.Z.UNIVERSITY

MULTAN SUB CAMPUS D.G.Khan
1
We want to dedicate our report to all the people who helped and pray for us. People who
bring lots of colors and happiness in our lives, including first of all our parents specially, their
prayers are always with us.
Then our honorable teachers, they guide us in every difficult time especially in studies;
their guidance will be with us in every field of our lives. We were unable to prepare this report
without their guidance.
Then our friends their caring, thoughts and smiles will always be with us through out our
lives and we will miss their company in future.
So, we are going to dedicate this report all the above people who are colors of our lives. We
think without them our lives will be colorless.
2
Practical work is the essence of executives. By keeping this in view our course instructor
gave us the repot of “Al-Ghazi Tractor Limited.” We are very much thankful to our teacher
Mr.Riaz Hussain for providing us a chance to Know that whether theoretical concepts are
applicable in practical life or not. It was a great experience for us.
We are also very thankful to the persons who helped us in making this report.
3
Report of Financial Mamagment about Al-Ghazi Tractor Limited is a big tool to teach the
students about the company that how it is changing with the passage of time.
We were assigned “Al-Ghazi Tractor Limited?” that was a wonderful experience. We tried
our best to produce the most comprehensive report on the given topic.
This effort can be evaluated by the readers and constructive critics will help us in true
prospective.
4
Serial # name Page #
1 Executive Summary 6
2 Vision & Mission 7
3 Introduction 8
4 Hirarcy Chart 10
5 Departments 11
6 Marketing Deptt. 12
7 Personnel & Adnim Deptt. 13
8 Personnel Deptt. 14
9 Store Deptt. 18
10 Quality Assurance Deptt. 20
11 Production Deptt 21
12 Finance Deptt. 25
13 Competitors 29
14 Ratio Analysis 30
15 SWOT Analysis 35
16 Findings 37
17 Successes 38
18 Suggestions & Conclusions 39
19 References 40
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EXECUTIVE SUMMARY:
Al-Ghazi Tractors Limited was incorporated on June 26, 1983 at Lahore.The area of
factory, at D.G.Khan, is 100 acres approximately. It uses the product design of “FIAT” of
Italy. The main purpose of the company is assembling and distributing of Fiat Tractors.
They assemble two models of tractors i.e. 480-S and 640. The depletion rate of 480 is 85%
and 640 are 76%.
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Forecasting entirely depends upon the marketing department. Previously 98% of sales was
made by contract with ADBP but now it is carried out on net cash payment basis. Because
delivery through ADBP has been stopped. Highway method is used for transportation
purpose.
To reduce inventory level they adopt safety stock method. They have different lead-time for
different suppliers. Al-Ghazi Tractors Limited also use ABC analysis for managing
inventory. Al-Ghazi Tractors Limited has a separate quality control department. The
laboratory is well equipped to under take chemical and mechanical testing of metals. Al-
Ghazi Tractors Limited has received the ISO 9002 Certificate.
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To make AGTL a symbol of success
With AGTL’s name being synonymous with stability, profitability, Brand strength and
customer loyalty, AGTL’s mission is to retain market leadership as the lowest cot producer of
the highest quality products – the most enduring competitive edge being the quality of our
tractors.
Introduction
Al-Ghazi Tractors Limited was incorporated in 1983, as a culmination of the then

government’s desire to bring in the private sector to join hands with the public sector – as
public-private enterprise - under a seven year management contract to the private
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shareholders. At the end of seven years, the government once again took over the
management control of AGTL in 1990
In 1991 the project was offered for privatization, and acquired by Al-Futtaim Group of
Dubai who took over the management control of AGTL in December 1991.Ever since AGTL
is a case study of rollicking corporate success. 50.02% shares of the company are held by Al-
Futtaim Industries Co. LLC and 43.17% shares are held by CNH Global NV, with whom Al-
Ghazi Tractors Limited has signed an Industrial Collaboration Agreement for manufacture of
New Holland brand tractors. The Agreement is valid till April 2016.
With Corporate Head Office in Karachi, the AGTL plant is located in Dera Ghazi
Khan – 100 kms from Multan and some 800 kms from Karachi. Built to specifications and
standards of Fiat / New Holland – the world’s No. 1 tractor manufacturer – the plant is a
hallmark of engineering dynamics.
With expansions carried out in 2005, the plant is now capable of producing 30,000+
tractors per year in a single shift – the most enduring competitive edge being the quality of
our tractors, which are robust and sturdy and carry a local content as high as 83%.
The AGTL plant and the staff town in what is essentially a less-developed-area of the
country, has given fillip to the whole area by way of ancillary and allied activities. We take
justifiable pride in the contribution that the company has made in the social cause of uplifting
and transforming a whole society in the remoteness of Dera Ghazi Khan.
AGTL was the first automobile company in Pakistan to earn the ISO-9002 Certificate.
ISO-9001: 2000 Registration is now valid until January 2007.
AGTL had commissioned Baan, a global provider of enterprise business solutions

worldwide to implement ERP and thus bring the entire business cycle viz. sales and
marketing, planning and purchases, stores and inventory, manufacturing, quality,
maintenance, and finance executed as enterprise-wide integrated business system. The project
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went live on January 1, 2002. The company is now acquiring and moving in 2006 to the new
version – Baan VI.
With no short cuts to distinction, AGTL operates with a disciplined focus on all
management activities – the most important asset being its human capital: the customers, the
employees and the investors – AGTL believes that this human capital does not depreciate
with time. The management works to ensure that all supply chain associates, dealers,
shareholders, employees share in the Company’s growth and prosperity.
Austerity and primacy of efficiency being settled wisdom at Al-Ghazi, AGTL’s core
strategy has been to be the lowest cost producer of the highest quality products. AGTL is the
only automobile company in Pakistan which has not raised its selling prices ever since these
were reduced and agreed with the Government in August, 1998.
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Hirarchy Chart
CEO
PARVEZ ALI
GENERAL GENERAL GENERAL

GENERAL
MANAGER
MANAGER MANAGER MANAGER
ADMIN
MARKETING PERSONNEL Finance
SENIOR
REGIONAL
MANAGER
MULTAN LAHORE ISLAMABAD SUKHUR
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1. Marketing Department
2. Personnel and Admin department
3. Store Department
4. Quality Assurance
5. Production Department
6. Finance Department
Marketing department include the following tasks
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 Maintenance of the staff

 Staff training
 Workshop arrangement
 Showroom arrangement
 Sale promotion
 Dealer development (motivating them)
 Research and development
 Forecasting the new trends in the market
 Aware of all the competitors’ activities
DISTRIBUTION FUNCTION
 The distribution function is the part of the marketing department and its activities are
as follows.
 Booking of tractors
 Delivery of tractors
 Handling of payments
 Preparation of reports for MIS
 Close co-ordination with production and material management department
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The P&A department deal with employees. All the activities related to
employees of factory are handled by this department. P&A department
maintains the workers day-to-day activities, their monthly and yearly records.
Functions:
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The function of Personnel department of the factory are;
 Maintenance
 Have all the records of Employees
 Act as an agent on behalf of the company to handle all the cases of coat.
 Transport
 Security
 Horticulture
 Cleaning
 Colony affairs
 AGTL School
 Official visit adjustment
 Have direct link with the Finance department
 All the payment verifications are done here
 Purchases
 Maintenance of company’s policies
The Personnel department handles all the matters related to employees. Such as:
• Attendance records
• Leave Fair System
• Wage System, etc.
• Medical Claim
Wage System
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1 Daily wage basis

2 Contract basis
3 Permanent basis
Daily wage basis
Daily wage basis employees are given salaries on daily basis. The personnel
department maintained their record and then passes it to the Finance department where the
employees are given wages. The daily rate per hour per employee is Rs.155. The overtime
wage is also included by calculating the overtime hrs an pay the employee at a specific
overtime rate per hour, which is different for different employees.
Contract basis
• Contract basis employees are given wages on monthly basis. These employees are given a
specific card for their attendance. And at the end of month in the basis of their attendance
records, they are paid for their wages.
Permanent basis
Permanent basis employees are also given wages on monthly basis.
Leave System:
The personnel department also handles the leave system. Basically three types of leaves are
given:
0 Earned Leave
1 Sick Leave
2 Casual Leave
The leave system for Executive and for Non-Executive (staff workers) is different.
Executives are allowed to have only earned leave but the workers are given all the three types
of leaves.
Earned Leave
The worker preplans this type of leave. 30 days of Earned Leave
are allowed for each worker in one year. The worker is paid for this type of leave.
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Sick Leave
In the case of any sickness 10 days of sick leave are allowed for each worker in one
year. The worker is not paid for this type of leave.
Casual Leave
In the case of any emergency 10 days of causal leave are allowed for each worker in
one year.
The worker is not paid for this type of leave. The worker can also take even the half-day
of this type of leave.
Leave Adjustment
Each worker has assigned a leave card for its record’s maintenance. The leave
adjustment is done on yearly basis by the personnel department.
Each month the total number Earned Leave, sick leave, and Casual Leave are calculated and
record is maintained. And after each year if the allowed days of leave are remaining then they
are adjusted in the next year’s leave Schedule for the related employee.
If any dispute arises then the personnel department handles this matter. If an employee
misbehaves, then the personnel department issued a charge sheet to him and takes the
corresponding action against or in favors of him.
The Personnel department handles all these work.
The Admin department deals with the information related to:

• Workers
• Warning
• Charge sheet
• Transaction of post
Types of workers:
 Daily basis
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 Contract basis
 Permanent basis
The manpower strength required for daily production is 603.

The personnel department’s responsibility is to keep the man power strength standard one.
For this purpose, the daily records are maintained, and also the daily attendance is taken. If
for certain reason any worker is not available, the personnel department has to make
adjustment to keep the standard level of man power strength for the production of tractors.
The Admin department’s responsibilities are:
• Transport Facility
All the facilities related to transport are under this department. The things related to
plant are transported from one place to another is called pool transport facility.
• Purchased
For long-term purpose, parts are purchases that are required to assemble the tractors so
that to avoid the stop of production. Purchases are made on the credit basis to the
suppliers. But the problem occurs here sometime because even the small amount is also
made trough credits.
• Security
All type of security related to,
0 Employees, and Goods are under the responsibility of admin department.
• Medical Facility
0
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Social Security: its relate to the workers. Workers are secured through insurance. On
5000 wage, 7% insurance security is given to each employee, i.e., 350 rupees is given to each
employee per month.
1 Officers Security: for executives this policy also exists. And they are also secured through
the insurance.
• Retirement
There is employee old age system for employees and also for workers. 280 rupees is
retained for each worker as per month for its pension plan. In which, the employee’s
contribution is 40 rupees which is deducted from his salary and the remaining 240 rupees is
given by the organization.
• Labor Benefits
There are two acts related to the labor’s benefit:

Participation Act of 1932: under this act, the workers ere given the facilities of medical
treatment, pension facility, etc.
0 1934 Act: under this act, including the facilities of 1932 act, the marriage grant
facility, scholarship, education, and many other facilities are avail by the workers from the
organizations which are registered through this Act.
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The department plays a vital role in the factory and is regarded as the backbone of the
factory because it controls almost all the other departments of the factory. All the other
departments cannot play its role without the help of the Store department. The main purpose
of the store is to receive the components, maintain the record and issue the parts according to
the need. Store department is divided into the following sub parts.
Yard
BAAN
Local Un Boxing
Store Casing Knock Down (C.K.D)

Department
Binning
Salvage Cell
Expense store
This part of the store is responsible for receiving, binning the heavy components, and
to make the tyre assembly.
The store yard is categorized into three areas:

0 Components Receiving area: In this area the components are unloaded from the
trucks.
1 Yard Item Location: The heavy components such as gear box, axle case casting parts
are stored here.
2 Tyres Assembly: The front and the rear tyre are also stored here.
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The term “quality” refers to the excellent product or service that fulfills or exceeds our
expectations. The expectations are based on the intended used and the selling price. Thus, a
quality is somewhat is an intangible based on perception.
Standard quality is the totality of features and characterizes tics of a product or service that
bear on its ability to satisfy implied or stated needs. Stated needs are determined by the
contract, whereas the implied needs are the function of the market and must be identified and
defined. The needs involve:
 Quality Control
It is the use of techniques and activities to achieve, sustain, and improve the
quality of a product or service.
 Quality Assurance
All the planned and systematic actions necessary to provide adequate
confidence that a product or service will satisfy given requirements for quality is called
Quality Assurance.
 Safety
 Availability
 Maintainability
 Reliability
 Usability
 Economics (Price)
 Environment
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PRODUCTION PROCESS
The process design in the assembly line of tractors consists of the following operations an
activities.
 Gear Box
 Transmission
 Coupling of transmission with Gear-Box
 Test Bench
 Coupling engine with transmission
 First line
 Paint shop
 Second line
 Final inspection
GEAR-BOX
In the plant, during assembling certain operations are performed by technical individuals, are
discussed as under.
i) CLEANING OF CASE FROM INSIDE
ii) COUNTER SHAFT NUT TIGHTING AND STAKING.
iii) TRANSMISSION SHAFT COVERS TIGHTENING.
iv) SPILTER TIGHTENING AND LOCK PLATE BENING.
v) CHECK POSITION OF MAIN SHAFT INNER AND SEAL AFTER INSERTION OF
TRANSMISSION
The following are the operations that are performed during transmission.
i) CLEANING FROM INSIDE.
ii) BEVEL PINION NUT TIGHTENING.
iii) BEVEL PINION ROTATING TORQUE.
iv) DRIVE HEAD TIGHTENING.
v) BEVEL DRIVE ROTATING.
vi) BEVEL DRIVE BACKLASH.
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COUPLING OF TRANSMISSION WITH GEAR-BOX

Here gearbox and all other parts, which are prepared in transmission, are coupled and the
following operations are performed.
i) GEARBOX WITH TRANSMISSION TIGHTENING.
ii) FINAL DRIVES TIGHTENING.
iii) BREAK PEDAL ADJUSTMENT .
TEST BENCH
Here the engine is checked to check that all its parts are at their its correct places or not,
further actions are taken later on.
1. CLUTCH TO FLY WHEEL TIGHTENING
2. ENGINE WITH TRANSMISSION
3. MASTER CLUTCH PEDAL ADJUSTMENT
4. HYDRALIC LIFT TRANSMISSION TIGHTENING
5. LEVER TO STEERING BOX TIGHTENING
6. FRONT AXLE SUPPORT TIGHTENING
PAINT SHOP
i) WASHING
Here to remove dust the body of engine , the body of the engine is washed with hot mixture
of hot water and chemicals.
ii) PRIMER
Here the body is make prepared for paint by allowing to remained in the hot air.
iii) PAINT
Here the steel body is painted in the “Paint Shop”.
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SECOND LINE
1. ELECTRICAL SYSTEM
2. ALIGNMENT OF STEEL METAL
3. FRONT WHEEL TIGHTENING
4. REAR WHEAL TIGHTENING
5. WHEEL ALIGNMENT
Here the front and back wheels are alighted and their bolts are tightened.
vii) OIL CHECKING

Here the oil levels are checked and fill oil to it and after it the final inspection is made.
FINAL INSPECTION
The following are the operations, which are performed during final inspection of finished
tractors.
i) CHECKING OF OIL LEVEL:
 Air cleaner oil checking
 Water level checking

 Weight test of Hydraulic pressure
 Engine oil level checking
 Gear Box oil level checking
ii) CHECKING OF OPERATING PARTS:
 Clutch play tightening and sound test
 High, low gear sound checking
 Final drive tube leak
 Differential case hole and sound checking
 Gear box top cover leak checking
 Differential leak checking
 Engine sound checking
 Lift pump support checking
 Automisophry support checking
 Paint cover checking
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ELECTRICAL LIGHTING SYSTEM CHECKING :

 Head light high checking
 Beam indicators checking
 Oil pressure checking
 Alternate light checking
 Alternate junctions checking
 Fan belt (extension/loose) checking
 Fuel gauge checking
 Temperature gauge checking
 Main wire clip checking
 Parking lights checking
 Parking indicators checking
 Neutral switch checking
Head light low checking
 Back lights checking
 Horn checking
 Yellow lamp checking
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The Finance Department handles all the matters related to finance. It also maintains all
the records related to it and also prepare a budget for each year. All the payment transactions,
recording transactions, and the maintenance of records are under Finance department.
The Finance Department of Al Ghazi Tractors Ltd. handles all the matters all the
payment transactions, recording transactions, and the maintenance of records are under this
department. The Finance Department has the direct link with the Admin Department. All type
of bills and slips came in this department from the Admin department. And if there is any
mistake then the Finance Department inform the Admin Department about this to make it
correct. The Finance department has the following sections categorized as:
• Accountant
• Collection Account
• Cash Account
• Payroll and Tax System
For the maintenance of records or for the payment and receipt purpose, different vouchers are
used.
For Payment purpose:
• Cash Payment Voucher

• Account Payable Voucher
• Bank Payment Voucher
• Journal Voucher
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For Receipt purpose:
• Cash Receipt Voucher

• Bank Receipt Voucher
Cash Payment Voucher

The CPV is usually made for the internal users. The Finance Department through CPV makes the
payment up to of Rs.5000. If the purchases are above that specific amount, then Finance Department
has to taken approval from the Head Office. The cash payment is also made by the Finance
Department. The CPV is made for different payments such as:
• Officer Mess Expense

• Cleaning Charges
• Staff Welfare, and many more.
• Travelling Expenses
• Medical Allowances
On each CPV it is necessary to stamp a “Revenue Stamp”. This stamp is given by the government to
generate its revenue.
• For Rs.2,000 or below it, Rs.1 stamp is stamped.

Account Payable Voucher

The APV is also made for the payment purpose, but the main difference between CPV and APV is
“tax deduction”. The payment for which the APV is made is usually for the parties. The tax is
deducted from their amount and after that the remaining amount is paid to them for their services. The
APV is made for the deduction of the tax. Different parties are charged different amount of
deductions.
The taxes that are collected from different parties through APV are must be submitted in the
bank within one week.
Bank Payment Voucher
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After the checking and approval of APV, the BPV is prepared for the amount that is
payable to the parties. Then after this, it is also checked and verified and after that the cheque
is prepared for the payment. And when the payee takes its cheque, the cheque is given to
him/her and all the attached documents related to it are maintained in the DBU file.
The BPV is not only made for the payable amount after deduction, the services that are not
tax deductible are also paid through BPV. Such as:
• Vehicle Services like petrol, CNG, Diesel etc. each vehicle has a sheet card assigned
to it. This type of services taken by the specific vehicle is recorded in the card and
after each month, the card is checked and the payment is made through the BPV.
• Haj Expenses for the employees who are winner through the draw each year are
allowed to go to perform Haj and all the expenses are from the company, the payment
of these expenses is made through BPV.
• Loan like motorcycle loan is given to the employees of about Rs. 20,000, and this
payment is also made through the BPV.
And also there are many other payments made through BPV, but due to shorten of time it is
not possible to mention all.
Journal Voucher
Usually the DJV is prepared for the adjustment purpose, if there were any mistake happened
during the maintenance of records than to correct it or to rectify it the DJV is prepared. The
account in which there is mistake occurs, that account is debited and the rectification account
is credited by the same amount.
Cash Receipt Voucher
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CRV is prepared at the time of receiving cash. Usually the CRV is prepared for scrape sale.
The compay’s own workers or employees buy most of the things that become scraped. So the
CRV is prepared for it.
One copy of that receipt is keep in record and one copy is given to the employee so that he
can make a gate pass for taking the scrape product out of the organization
This process is as follows:
The employee/worker writes an application to the GM (Plant) and after approval from
the Admin Department, it comes in the Finance Department where the CRV is made for it.
And then the product can easily be taken by employee/worker after making a gate pass.
There is 15% tax is charged on the total amount for each scrape sale.
Mainly the company charge the sales tax on four types of things: these are:
• Electricity
• Shell Pakistan Limited
• Oil, Lubricants
• Scrape
After each month the specific sales taxes are maintained. The total amount of the sales
taxes for a month is recorded on the receipt and then the government refund that amount to
the Company because it is tax exempted.
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• MILLAT TRACTORS LTD.

• FECTO BELARUS TRACTORS
• G.M.TRACTORS (PVT) LTD
• KHYBER TRACTORS
• MODERN CONTINENTAL
• CHINA GOLD -OX
• ALLIED TRACTORS
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Horizental analysis
Income statement
a/c Name 2004 2003 Change % change
2004-2003 (2004-2003)*100/2005
Sales 9022515 779322 +1283193 14.22%

C.G.S (7387468) (6136774) +1250694 16092%
GP 1635047 1602548 +32499 1.98%
Distribution cost (65152) (61403) +3749 5.75%
Admin expenses (80043) (79744) +299 .39%
Income 1489852 1461401 +28451 1.90%
Operating income 564660 303372 +261288 46.27%
Operating expense (141571) (121700) +19871 14.03%
Finance cost (2761) (7517) -4756 -172.2%
Profit before tax 1910180 1635556 +274624 14.37%
Tax (680862) (574683) +106179 15.59%
Profit after tax 1229318 1060873 +168445 13.70%
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Vertical Analysis
a/c Name 2004 % 2003 %
Sales 9022515 100% 7739322 100%
C.G.S (7387468) 81.87% (6136744) (79.20)%
GP 1635047 18.12% 1602548 20.80%
Distribution cost (65152) (.70)% (61403) (.07)%
Admin expenses (80043) (.88)% (79744) (1.0)%
Operating Income 1489852 16.51% 1461401 18.88%
Income 564660 6.25% 303372 3.91%
Finance cost (2761) (0.031)% (7517) (1.57)%
Profit before tax 1910180 21.07% 1635556 21.13%
Tax (680862) (7.54)% (574683) (7.24)%
Profit after tax 1229318 13.62% 1060873 13.7%
Balance Sheet
Horizentol analysis
a/c name 2004 2003 change %
Current assets 2035794 1869380 171814 8.13%
Operating assets 204955 213276 (8321) (4.05)%
Capital work in 2594 8461 (5867) (226.17)%
process
Long term loans 867 2520 (1653) (190.5)%
Deffered tax 40224 32436 7788 19.36%
Current liabilities 1412869 911411 201458 35.49%
Long term 45607 2210 43397 95.15%
liabilities
Capital 827107 1208202 (381095) (46.07)%
Vertical analysis
Balance sheet
Assets side
a/c Name 2004 % 2003 %
Current assets 2035794 89.90% 1869380 87.84%
Operating assets 208698 9.13% 222887 10.50%
Long term loans 867 .03% 2520 .11%
Deffered tax 40224 1.75% 32436 1.52%
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Total assets 2285583 100% 2121823 100%
Liability side
a/c Name 2004 % 2003 %
Current liabilities 1412869 61.81% 911411 42.95%
Long term 45607 1.99% 2210 .104%
liabilities
Capital 827107 36.18% 1208202 56.94%
Total lia. & 2285583 100% 2121823 100%
capital
Ratio analysis
For 2004
Current ratio= Current assets
Current liability
= 1863980 = 2.04
911411
Debt ratio = total liabilities
Total assets
= 913621 = 0.430
2121823
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Return on assets = Earnings for common stockholders

Total assets
= 1229318 / 2285583 = 0.53
Total asset turn over = sales/CGS

Total assets
= 9022515 = 4.25
2121823
Gp margin = GP/Sales
= 1635047/9022515 = 0.1812
Operating profit margin = OP/ Sales
= 1912941/9022515 = 0.21
Net profit margin = NP/Sales = 1229318/9022515= 0.13
EPS = Earnings available for common stock / shares for common stock
=1229318 / 60000000 = 0.02
P/E Ratio = MPS / EPS =5 / 0.02 = 250
For 2003
Current ratio = Current assets
Current liability
= 2035794 / 1412869 = 1.44
Debt ratio = Total liabilities

Total assets
=1458476 / 2285583 = 0.63
Total asset turn over = sales/CGS
Total assets
=7739322 / 2285583 = 3.386
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Gp margin = GP/Sales
= 1602548 / 7739322 = 0.20
Operating profit margin = Operating Profit / Sales

= 1643073 / 7739322 = 0.21
Net profit margin = NP/Sales = 1060873 / 7739322 = 0.13
Inventory turnover = CGS / Inventory 6136774 / 408283 = 15.0
Return on equity = net income / capital =1060873/ 1208202 = 0.87
Return on asset = sales / total assets = 7739322 / 2121823 = 3.64

EPS = Earnings available for common stock / shares for common stock
= 1060873 / 40000000 = 0.025
P/E Ratio = MPS / EPS = 5 / .025 = 200
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• AGTL has the distinction of bring the first automobile industry in Pakistan to earn the
ISO-9002 recognition. This major advance of tuning up the production activities
through ISO9000 has put in place a system of sound quality activities and cross
functional intergrated process through out the company.
• Their manufacturing plant is the symbol of engineering dynamics the AGTL plznt at
D.G Khan.
• Their 3% parts are make locally.
• Lower cost producers of high quality products.
• For customer satisfaction AGTL has dotted whole country with large dealer
network(100 dealers and 1000 customer care service center) customer care center and
tractor workshop.
• AGTL has won the following rewards which adds to their strengthens
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1. top companies performance awards.

2. Corporate excellence awards
3. best calender awards
4. golden jubilee award
• Their worker commitment to their organization is also their great strenth.
• Quality products with strong threshing power.
As AGTL is currently market leaders, they are few weaknesses as compared to strengths.
• Low advertising budget as compare to competitors.
They are looking forward to capture market with more diversification in the product. Through
introduction of new product and they think that product will become market success in the
future, as they are delivery all, that which is demanded by the customer.
• New model introduce by competitor having turbo charge whose major advantage is
that it result in less consumption of fuel.
• Sales tax if implemented by the government than it will increase the price and it will
not be benificial for organization as it will reduce the total sale.
• Government has plan to import duty free tractors from Russia which are less costly
then FIAT quality products.
37
AL GHAZI TRACTOR LIMITED:
AL-ghazi tractor establish as government institution but it not perform in the way as it is
performing now .so it was privities as Pakistan first privatized firm. After privatization it start
the journey of success and today it is emerged as market leader in industry but that largely
was the out come of:
• Dedication to work in the direction of profitability
• No compromise on quality
38
• Learning from competitors
• Undurstanding the needs and wants of customers
• Providing benefits and ficilities to employees to boast there moral
• Widening the vision through marketing research
• With culture of corporation and poitics free
• Decision making from bottom to top
• With updating the production facilities according to new needs and wants
• Having the largest share in the industry
• Best quality products on which customer trust
• With employees so motivated that they are ready to perform wonders
39
• Un match in Pakistan corporate world in giving of returns to share holders(about 293
millions in year 2000)
• Paying the tax to Govt. which is equivilant to 35% of company profit
Role Of Corporation In Industry:
AGTL is the 21st century market leader. To maintain this they have to more caution
regarding there competitors and involvement of market research in there decision should be at
peak.
40
Departments:
Marketing department is there most influencing and playing its role in achieving the
core objective. Further advancement can be made in its role through increasing the
advertising budget.
Product Mix
There strategic business unit is fiat 480 as 70% of the sale of AGTL is based on this
product .it is the good sign that AGTL considering the addition of two new product with
lesser horsepower as compared to Fiat 480. As our country is largely composed of those
farmers, which are having land, less than 25 Akers.
In AGTL Quality Is The Thing Which Is Un Compromising And Which In Fact First
Step In All The Success Which AGTL Gain And Will Remain Gaining If They Remain Firm
On There Motto.
• www.alghazitractorslimited.com
41
• www.googlesearchengine.com
• www.yahoosearch.com
• www.paksearch.com
Riaz Hassan depti Manager Distribution
42

Internship Ghazi Tractor

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Internship Ghazi Tractor

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Al-Ghazi Tractors Limited

AL-GHAZI TRACTOR LIMITED

Mr. Riaz Hussain

M. Nauman Khan (05)

Tahir Shafiq (31)

M. Imran Sajid (33)

Institute of management sciences B.Z.UNIVERSITY

Serial # name Page #

2 Vision & Mission 7

7 Personnel & Adnim Deptt. 13

10 Quality Assurance Deptt. 20

18 Suggestions & Conclusions 39

To make AGTL a symbol of success

Al-Ghazi Tractors Limited was incorporated in 1983, as a culmination of the then

AGTL had commissioned Baan, a global provider of enterprise business solutions

GENERAL GENERAL GENERAL

MULTAN LAHORE ISLAMABAD SUKHUR

Marketing department include the following tasks

 Maintenance of the staff

 Close co-ordination with production and material management department

The function of Personnel department of the factory are;

1 Daily wage basis

The Admin department deals with the information related to:

The manpower strength required for daily production is 603.

The Admin department’s responsibilities are:

There are two acts related to the labor’s benefit:

Store Casing Knock Down (C.K.D)

The store yard is categorized into three areas:

COUPLING OF TRANSMISSION WITH GEAR-BOX

vii) OIL CHECKING

 Water level checking

ELECTRICAL LIGHTING SYSTEM CHECKING :

For Payment purpose:

• Cash Payment Voucher

For Receipt purpose:

• Cash Receipt Voucher

Cash Payment Voucher

• Officer Mess Expense

• For Rs.2,000 or below it, Rs.1 stamp is stamped.

Account Payable Voucher

Bank Payment Voucher

Cash Receipt Voucher

This process is as follows:

• MILLAT TRACTORS LTD.

Sales 9022515 779322 +1283193 14.22%

Total assets 2285583 100% 2121823 100%

Return on assets = Earnings for common stockholders

Total asset turn over = sales/CGS

Debt ratio = Total liabilities

Operating profit margin = Operating Profit / Sales

Inventory turnover = CGS / Inventory 6136774 / 408283 = 15.0

Return on equity = net income / capital =1060873/ 1208202 = 0.87

Return on asset = sales / total assets = 7739322 / 2121823 = 3.64

1. top companies performance awards.

• Quality products with strong threshing power.

• Low advertising budget as compare to competitors.

that it result in less consumption of fuel.

not be benificial for organization as it will reduce the total sale.

then FIAT quality products.

AL GHAZI TRACTOR LIMITED:

was the out come of:

• Dedication to work in the direction of profitability

• Learning from competitors

• Undurstanding the needs and wants of customers