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Boss Moulded Furniture

Gujranwala
An Internship Report By Muhammad Ibtasam


University of the Punjab, Gujranwala Campus
2012
Muhammad Ibtasam : BC08025


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Table of contents
Dedication .. 7
Acknowledgement . 8
Executive Summary . 9
Future of Business . 10
Vision . 11
Mission . 12
Introduction and History 13
Nature of Business . 14
Organizational Hierarchy of the Business ... 15
Products of Boss Moulded Furniture 16
Full plastic chairs . 16
Steel Plastic chairs 16
Study chairs and desks . 16
Public sofa and steel plastic chairs. 17
Public sofa and snack table . 17
Revolving chairs 17
Tables and Households 18
Baby range . 18
Brands offered by the Boss Moulded Furniture .. 19
Among the competitors of Boss Moulded Furniture .. 20
Customers of Boss Moulded Furniture . 20
Markets . 21

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Some of the policies of Boss Moulded Furniture ... 21
Sales policy . 21
Eligibility for the sales discount policy .. 22
Calculation of invoice price according to policy 22
Commitment and contract based customers .. 22
Win boss bonus . 23
Sales returns policy .. 24
Customer rate ... 24
Departments of the organization 25
Accounts departmen . 25
Debtors end .. 26
Creditor end .. 26
Bank reconciliation statement .. 27
Invoice formation ... 27
Payroll formation .... 27
Karachi Accounts . 28
Sales and marketing department . 29
Distribution centers of Boss Moulded Furniture .. 30
Sales operation .. 30
H.R department .. 31
Activities performed by Human resource department 31
Human resource related practices in the organization . 32
Job analyses . 32
Recruitment and selection 33
Testing and selection 33
Interviewing 33

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Orientation 34
Training 34
Appraisal of employees ... 35
Compensations .. 35
Health and safety .. 35
Disciplines and norms . 36
Production department . 36
Store Department .. 38
Quality control department 39
Purchase department 40
In/out Department . 41
Taxation Department 41
Research and Development . 41
Audit Department .. 42
Work done by me at Boss Moulded Furniture . 42
my work experience 42
Error Day . 43
Invoice Formation Desk . 43
Interview days .. 44
Bank Reconciliation desk .. 44
Department visits . 44
SWOT analysis 45
Strengths . 45
Weaknesses 46
Oppertunities . 47
Threats . 47

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Financial analysis of the firm .. 48
Liquidity Ratios . 48
Activity ratios/ turn over ratios . 50
Profitability of the company ... 52
Solvency of the company . 52
Conclusion .. 53
Refrences . 54













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Dedication
All of my work is purely dedicated to my parents and to the entire
team of teachers of university of the Punjab Gujranwala campus who
have taught me during whole session of B.Com (Hons)










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Acknowledgement

I am greatly thankful to the university of the Punjab Gujranwala campus how gave
me an opportunity to give a practical touch to my studies. I am also thankful to my
internship supervisor how have guided me through whole journey of my internship which
greatly helped me in enhancing my skills and put skills of professionalism into my
personality. Being an active part on an organization was a great experience for me. I have
been working in Boss Moulded Furniture for six weeks especially with the accounts
department of the organization where I was being provided with the knowledge and practical
skills about the operations of a well mannered and disciplined organization like Boss
Moulded Furniture. Thanks to the staff members of the organization. They had been very
cooperative in all aspects. I had been provided with all information needed. They trained me
like a professional and I enjoyed well working with them. It had been a great experience for
me to be there and try to implement what I have learned from books.






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Executive Summary
Pakson international plastic industry with the brand name of Boss Moulded Furniture
is operating in Pakistan. It was established in 1991 as a private limited company and is now
owned by two brothers Mr. Asif Mughal and Mr. Azam Mughal. Boss Moulded Furniture is
one of the leading manufacturers of plastic furniture and has been providing quality goods to
its customers since beginning. The organization has always been successful in proving the
quality goods to its customers and in providing a large range in its products such as Chairs,
tables, steal plastic chairs, revolving chairs, study tables, baby range and households. The
organization is much disciplined with formal organizational structure. It has distinctive
departments with defined responsibilities and obligations. Boss Moulded Furniture is very
supportive to its customers, dealers, distributors and suppliers. Different Polices are made by
the organization in order to maintain and support its customers. These policies greatly
enhance the performance and contributed positively towards the profitability of the
organization. Due to its committed and well educated staff and experienced and trained
workers, Boss Moulded Furniture is the market leader in plastic furniture manufacturing. As
all the small and medium firms, Boss Moulded Furniture also has opportunities to diversify
its business but economic conditions of Pakistan and somewhat considered hurdles in the
progress of all these firms. Boss Moulded Furniture is now realizing its organizations
internal problems very fast if any and finding out better ways to eliminate them in return
enhancing performance of every department. Despite of having a number of competitors in
the market right now, Boss Moulded Furniture is finding its ways towards success.





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Future of the Business
In the near past, wood furniture was preferred on plastic furniture because it was
considered better in all aspects such as durability, beauty, style and verity. Plastic industry
was not flourished and equipped with technology to make the quality products which could
be acceptable by the people in all respects. Nowadays, time has changed. Not only the needs
of the people have changed and plastic industry has flourished, it is the need of our
environment that people should use plastic furniture instead of wood furniture. Cutting of
trees is absolutely not good for our environment. In other words, a healthy environment can
be kept by use alternative of wood. So, plastic industry has a good future. As far as Boss
Moulded Furniture is concerned, it does have a very bright future along with plastic industry
as a whole because it has a good repute in the market, have advantage over its competitors in
diversity and quality of products, a sound organizational structure, progressive professional
attitude , nature and style of doing business e.t.c









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Vision
The vision of boss plastics is to firmly establish industry leadership
in its markets by offering the best value for money to its customers
and consumers









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Mission
We are confident of achieving market leadership through
progressive initiatives directed towards our customers, consumers
and suppliers









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History and introduction
Boss Moulded Furniture was established as private limited company in 1991 in
Pakistan. It is solely privately owned and run by its own capitals not through outside
borrowings. It has been working to produce high quality moulded furniture, plastic steel
furniture, household and flower pots with the brand name Boss Moulded Furniture. Boss is
one of leading manufacturer and an exporter of moulded furniture e.g. chairs tables and
house hold plastic made products. During these years of working Boss has made a good
reputation in market by cost effectiveness, quality standards and quality control, in time
delivery of its range of products. Boss is providing a wide range of plastic made products.
Boss has its high technical, high quality production and marketing networks at all over the
country as well as in other countries than Pakistan. Boss proud to tell about its product
standards few of them are given below.
We use IIL pipe with new imported pure raw material.
We are using recommended furniture grade material that is recommended
internationally.
Our plastic material is completely unbreakable.
Our products are according to Body shape and Health standards.
Our production is of standards that there is very minimum variation in
production product from one unit of product to another produced.
We mostly high quality imported material for production our range of products.
We do not compromise on quality of products therefore we want to give you
the quality products with guarantee, warrantee and free from maintenance.
Boss Moulded Furniture is ISO 9002 certified as well as the winner of American
international quality Award.
BOSS is selling its products with in Pakistan through inseparable, integrated and
stable marketing network. Boss has established its distributors in all the cities and towns of
Pakistan. These distributors are the legal partner of boss. They work as channel members
with boss. Again these distributors have dealers in form of retailers that sells company
products to ultimate customer. Company sets sale targets for its distributors. If any

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distributors are not fulfilling the set sales target another distributor is appointed by the
company for sales targets in this area. In some cities Boss products are being sold through
established markets containing many distributors and dealers with in a market. With in
Pakistan Boss is also providing its products to institutions and organization like universities
and colleges by fulfilling their requirements. Outside the country boos is selling its products
through distributors as well as independent customers.
Boss Moulded Furniture keeps its employees motivated towards hard work and for
maintaining the quality standards. Pure plastic material is used by the firm to maintain its
quality. In other words company just aim to satisfy its customers needs and wants because
Boss Moulded Furniture knows that these are the customers who are the reason for the
existence of the organization. More satisfied customers, means more sound the organization.

Nature of the Organization

Boss Moulded Furniture is privetly owned by two brothers
Mr. Asif Mughal
Mr. Azam Mughal
It deals in the production of all kind of plastic furniture and steel plastic furniture.
Owners of the Boss Moulded Furniture also have another company named as kohe nor
which deals in home appliances. Organization has 300 employees of which 125 are workers
and all of them have their social security cards.
Both the owners of the company actively take part in the management of the
organization



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Organizational Hierarchy of the Business




















CEO
Marketing
and Sales
Director
Production
director
Marketing
Manager
Productio
n Manager
Staff
Manager
Distributio
n Manager
Accounts
manager
Manager
R & D
Accountant Franchise
Manager
Packaging
Workers
Machine
workers

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Products of Boss Moulded Furniture
Following are the product ranges of Boss Moulded Furniture

Full plastic chairs
Full plastic chairs include chairs without arms and with
arms and Boss Moulded Furniture ensures the quality of their
products. Vendors of boss mulded furniture are trustworthy
because they provide best quality raw material. Plastic chairs
offered by the Boss Moulded Furniture are durable, rigid, easy to
handle, comfortable and stylish.


Steel Plastic chairs
Boss Moulded Furniture is offering a verity of steel plastic
furniture. These steel plastic chairs are made up of best wood,
stainless steel, very fine polymer plastic and stylish and
comfortable cushions. Boss Moulded Furniture offers this range
of furniture for restaurants and cafeteria and also for offices.


Study chairs and desks
Study chairs and desks are offered for classrooms of
school colleges and universities also. Boss Moulded Furniture
gives warrantee of seven years on this type of furniture. This

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kind of furniture is available in combination of two, three or five
chairs with front desks.


Public sofa and steel plastic chairs
It is a modern seating system and is suitable for
internal as well as external use. It has a tubular
framework and wide seats which give it stylish look
and make it best suited to be used as a public sofa.
Public sofas and bench seating systems are available in
combination of two, three and five seats.

Public sofa and snack table
Boss Moulded Furniture is offering a verity of snack
tables also. Public sofa and snack tables are very much
stylish and have modern look which enhances the overall
look of any restaurant, hotel, house or any interior. Products
of these kinds are designed according to the current trends of
the market.

Revolving chairs
Boss Moulded Furniture is offering a fine selection of
revolving chairs. These chairs are best suited for any kind of internal
environment and allow the user a verity of back positions and
adjustability. These chairs are portable and hence easy to carry.

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Revolving chairs are the style stamen of Boss Moulded Furniture and
are popular in the market. These chairs are available in different sizes,
shapes, designs and adjustability options.

Tables and Households
These are plastic vessels and korari items offered
by the Boss Moulded Furniture.



Baby range
First steal pipe is cleaned with sand blaster then this
pipe is coated with phosphate solution. Plastic used in the
furniture is absolutely not injurious to the health of the
children.








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Brands offered by the Boss Moulded Furniture
In the current market environment of Pakistan a manufacturing organization cannot
survive if it does not introduce new products, new brands of a new range of services related
to the products. Because of rapidly changing demand of the people and changing market
environments and trends, a company has to continuously improve the existing products and
introduce the new products time to time. It is one of the market strategies of the Boss
Moulded Furniture that it is now offering three different brands in plastic furniture which are
Boss
VIP
Boss puro

Boss
This is the regular brand of boss and for this. There are a lot of competitors in the
market right now but boss is still the market leader because of its quality standards. People
with the average earnings and of middle class are the target markets for the brand. This
brand of Boss Moulded Furniture is completely penetrated into the local market of Pakistan.
VI P
This brand is the cheapest brand of Boss Moulded Furniture and it targets the
customers with low income level and those who are willing to pay low price.
Boss puro
This is the brand which guarantees highest quality. No recycled material is used in
the production of boss puro. All material used is of high quality and is imported. For this
brand, there are almost no competitors in local market for this brand. Products of this brand
are expensive and target customers are elite class people of Pakistan.


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Among the competitors of Boss Moulded Furniture
Following are the competitors of the firm in Pakistan
TOYO plastic furniture
Citizen
Super Asia
Apple plastic and steal and plastic furniture
Sonica industries
Indus
Venus
Customers of Boss Moulded Furniture
The customers of Boss Moulded Furniture are spread over in Pakistan. Boss products
are purchased and sold in all cities, towns of Pakistan through its established distributors and
dealers as well. Boss is also exporting its items and products to Afghanistan. In future it
plans to increase its exports to other countries as well. Besides these customers Boss is
providing products to educational institutions and organizations. Boss has contracted with
the following organizations and institutions for providing them products they require as per
specifications:-
Lahore College for womens.
Sargodha University.
Allama iqbal open university.
Agriculture University Peshawar.
National fast university Islamabad.
Read foundation Islamabad.
Many big government departments like NADRA, regional passport offices, National
human development authorities, vocational institutions, PEPSI, COCA COLA, Uni lever
Pakistan etc are also the customer of Boss Moulded Furniture. Many semi government
organizations are also the purchaser of Boss Moulded Furniture.

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Markets
All cities, towns, organizations, institutions, government and semi government
departments all are the customers or target market of Boss Moulded Furniture. Boss
Moulded Furniture is also exporting products to Afghanistan and intended to export its
product to other countries in near future as well. Some project relating to export to Asian
countries is in progress. In near future trade will be done with other countries also.

Some of the policies of Boss Moulded Furniture
Most of the customers of Boss Moulded Furniture are its credit customers. They are
the registered customers of the organization. In other words, they are dealers of the
company. Boss Moulded Furniture has introduced some policies for its customers.

Sales policy
Sales policy of the Boss Moulded Furniture is
22 + 2 + 5

Where,
22% = Standard discount
2% = Advance breakage discount
5% = Discount when payment is made within 30 days

If a customer makes payment within 45 days then for him policy takes the shape of,
22 + 2 + 2

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Eligibility for the sales discount policy:
A customer is only eligible for the policy discount, if he clears all of balance
amount within 30 days. 5% policy discount will not be given to a person who has some past
balance.
This sales policy is newly introduced by the company and now breakage discount is
given in advance. Formerly there was no breakage discount. Breakage claims, which
happened during transportation, were received and settled by issuing credit notes.
Calculation of invoice price according to policy:
Let goods ordered by the customer worth Rs. 100
So,
100 22 = 78
Then 2% of 78 is taken and subtracted,
78 1.56 = 76.44
Then 5% will be given on remaining amount i.e. 76.44*5% = 3.822
Final invoice price,
76.44 3.822 = 72.62

Commitment and contract based customers
Where there is a considerable benefit for the Boss Moulded Furniture from a
customer/dealer, the firm makes certain offers to stand that dealer. With the approval of the
Directors of the firm, they are offered 5% discount which has been discussed earlier in
advance. It does not matter for them that they make payment against their invoices within 30
days or not.

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Win boss bonus
Boss Moulded Furniture offer certain bonuses to its customers and win boss bonus is
one of them.
Company sets criteria upon which discounts are given to its customers/dealers.
What is win boss bonus?
If recovery against all the invoices is made within a month, a special discount is
given to them.
This discount depends upon the volume of recovery
For
100000 599999, 1%
600000 1499999, 2%
1500000 and above, 3%

Conditions for boss win bonus
A person is eligible for the policy only if the following conditions are fulfilled.
Discount will be given by taking into consideration of the last recovery of the
month.
If a dealer picks the goods up 5 times in a month and pay the amount of single
invoice after 30 days, he will not be eligible for the win boss bonus.
It is mandatory for the dealers that checks of all the invoices must be dated less
than 30 days period.
All checks must be cashed by the due date.
All stated rules and regulations must be followed along with invoice clearance.

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Sales returns policy
At first, it was the policy of the company that a dealer could return the products on
same buying rate. Then 55% will be deducted and product was bought back by the company.
Now the policy has been changed,
A special rate is defined by the company for each product to be bought back.
If sales return ratio of a dealer is less than 10% Dealer sales return rate will be
applied and if ratio is above 10% then customer rate* will be charged

Customer rate
Rate of sales return which is charged by the dealer from its customers
Dealer rate is higher than the customer rate.









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Departments of the organization
Accounts department
Sales and Marketing Department
Production department
Store
Purchase department
In/out department
Taxation department
Human Resource Department
R & D
Audit department
Quality Control department

Accounts department
Accounts department of a firm is the department where activities such as keeping
records of debtors and creditors, payroll formation, invoice generation and making of
financial statements are performed. The Activities which are performed in an accounts
department may be termed as back-office activities because accounts department does not
have any interaction with the outsiders and has a comparatively low interaction with
employees of the firm for its regular working. Mostly, vouchers, sale orders, proofs of
online payment and other account to account transfers are provided regularly to the
department to work on. In other words, accounts department has low front-line functions.
I did my internship at Boss Moulded Furniture and same as for the other
departments, my all discussion about the department is based on accounts department of the
firm specifically.

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Boss Moulded Furniture has a well organized accounts department. Department is
equipped with seven computer desks with the persons performing different functions
discussed below.
Debtors end
Creditor end
Bank reconciliation statement
Invoice formation
Payroll formation
Karachi Accounts

Debtors End
Debtor end relates to all acivities regarding customers, of the organization. Most of
the customers of Boss Moulded Furniture are credit based. Infect they are dealers of the
firm. It is working policy of the firm that, goods are sold to its customers, dealers or
shopkeepers at a certain price margin and they in turn sell products of the firm to final
consumers.
At debtors end, customers are registered, their balances are maintained, and certain
discounts when and where required are calculated according to the policy and given to the
customers. After doing all of the calculations, invoices are generated and sent to the
respective customers/debtors. These invoices are made when an order is made or when a
payment is made and whenever required by the customer. These invoices show balance of
the customer, either it is debit or credit, discount either given or not, against which sale order
the customer is being given the policy discount e.t.c

Bank reconciliation Statement
It is often a problem that most of the time, pass book balance of the firm does not match
with balance of cashbook of the firm so there is a need for some kind of reconciliation. Not

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only for the large firms, is bank reconciliation the need for firms like Boss Moulded
Furniture. A debtor sometimes makes payment and does not inform the firm and sometimes
information of payment is received before the payment is actually made. Boss Moulded
Furniture has an employee who collects the bank statement on daily basis and reconciles it
with the cashbook of the firm.

Creditors end
Creditors end deals with vendors, suppliers and all other persons from which
different kind of purchases are made. Organizations like Boss Moulded Furniture, has more
suppliers than other organizations and that is because of nature of the business. So
accountant on the seat keep records of all the purchases made balances of payables e.t.c. for
cash purchases, an employee who is assigned responsibility to purchase certain commodity
is given amount for that and his account is debited for the amount and when purchases are
actually made, his account is credited.

I nvoice Formation
Sales invoices are generated after receiving sales orders from warehouse. An
accountant is assigned this work. He daily receives sale orders and checks either the right
quantity and quality is shipped or there is any mistake. He receives sale orders after products
are shipped and by the working of that accountant, stock actually gets lower in the books of
accounts of the firm.

Payroll formation
Making and maintain payroll is one of the most important and critical work for the
accounts department. It is one of the obligations of the accounts department of a firm. Boss
Moulded Furniture has almost 400 employees. Record of all of them is kept by the

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department and their payroll is made according to the information written on contracts of
job. A customers record contains all information and all agreed terms and conditions. How
their payroll is made, what are the deductibles, social security deductibles, tax deduction and
bonuses, are the part of it and all this information is considered while making payroll.

Karachi accounts
Boss Moulded Furniture has its distribution center in Karachi. Dealings and
operations of the Karachi distribution centre separate from Gujranwala. Manual paper
information is sent to Head office Gujranwala weekly where it is processed and dealt
separately.
For cash sales, general vouchers are made by the sales department and sent to the
accounts department for passing entry.

About accounting software used by the firm
Now a day, almost every organization has computerized accounting systems. They
are using different kind of accounting software for this purpose. Using accounting software
has always been beneficial for the organization. It is easy to use; it saves time, easy to
expand and error free.
Boss Moulded Furniture also has software developed for the firm and it is one of the
big and complex software that are being used by the small industries of Gujranwala. The
firm is now using separate records for separate years. Each years record has separate icon to
open. So, employee of the firm can access his authorized information by giving a password
assigned to him.
In case if software shows error, head of the department has the authority to correct
the error or recover semi-finished work.

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Every day, a file of sale orders, vouchers, invoices and other documents which are
necessary for the record purposes, is generated in accounts department of the Boss Moulded
Furniture. Accounts department of Boss Moulded Furniture operates on the standards of
zero error.

Microsoft Excel
The firm also use ms excel for certain calculations. Head of accounts department
have developed different models in MS Excel for certain kind of calculations. For example,
they use it for making of bank reconciliation statement, to find out prices of different
products at spot e.t.c

Sales and marketing department
This is one of the most developed departments of the organization. Sales department
of the Boss Moulded Furniture is performing one of the very important jobs of the
organization and it is providing value to the firm , generating revenues for the firm and
working hard to increase the sales for the firm. Sales department of the firm is performing
following duties,

To focus on their customers needs and wants
Keeping an eye on competitors
Promoting their brands
Generating new ideas for the firm
Communication Bridge between outsiders and organization
It is said by the Boss Moulded Furniture that what they are working, is all about
providing our customers a value, a quality. They are concentrating strictly on fulfilling the

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needs and wants of their customers. They believe that those are the customers, which are the
reason of existence of our company.
Marketers of the Boss Moulded Furniture are clearly monitoring the competition.
Now a days, markets are more strict, competition is becoming more and more difficult and
one need to be more smart in case of monitoring the competition for the its survival in the
market. In the case of Boss Moulded Furniture, marketers and sales persons are doing very
good job for the firm. Because of them, Boss Moulded Furniture have won the title of
market leader. Boss Moulded Furniture still claims itself as a market leader.
Sales department is the key source of providing new ideas to the firm. This all
happens because of good and deep interaction of sales persons of Boss Moulded Furniture
with its deals customers and distributers. Boss Moulded Furniture has diversified its product
range up to three times since last two years. This clearly represents the performance of sales
and marketing department of Boss Moulded Furniture.

Distribution centers of Boss Moulded Furniture
Boss Moulded Furniture has two distribution centers
Gujranwala
Karachi
Where Gujranwala covers distribution in Punjab and upper areas of Pakistan and
from Karachi, distribution is made to lower legions of Punjab. Operations and distribution
from Karachi is separate from Gujranwala. From Karachi weekly reports are sent to head
office where it processed and computerized. Invoices are generated and sent back to
Karachi.
Sales operation
How a sale is executed at firm. It is one of the valuable things that I have learned
during my internship. Following is the procedure:

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First of all, sale executives call the parties to take orders from them.
Then a sale order is made with the help of software of the organization.
Software requires the following information for the generation of sale order:
Name
Address of customer
Model number of the product
After it, sale order number is generated and then two copies of sale order are
generated.
One is given to the person who dispatches the goods and other is held by the
security guard of the godown.
Person who dispatches the goods load the truck with the goods ordered and
state name of the transport service on sale order.
Then security guard performs a check that either the goods are loaded
according to sale order specification or not.
Then on the next day, sale order forms with builty receipt are moved to
accounts and audit department.
Then audit department compares both order forms and after it, sales entry is
made by the accounts department.
Then delivery challan is made by the accounts department which tells how
much goods are actually delivered in contrast with sale order.
Then sale invoice is generated.

H.R department
Activities performed by Human resource department.
The following are the responsibilities performed by human resource department:-
Conducting job analysis (determining the major duties and responsibilities of
employees and specification of skills to carry them as well).
Planning labor needs and recruiting job applicants.

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Selecting the right candidates at the right job
Orienting for new employees for organization introduction and making
arrangement for their training to carry out their job duties and responsibilities.
Measuring employees performance in performing job activities for promoting,
effective management and other purposes.

Human resource related practices in the organization.
J ob analyses
Job analysiss is information gathered to define the personnel duties and
responsibilities, skills required to perform job efficiently.
In Boss Moulded Furniture each employee job analysis is conducted through
observations, and questionnaire. Time studies are done after conducting job analyses. First
each employee basic major duties are identified through questionnaire and observations.
Then time studies are conducted that how much each activity require time. If there is spare
time after performing the major job duties employee are given more work to keep them busy
during office hours.
Job specifications are the skills, human behaviors that are require for performing job
effectively.
In boss job specifications are decided on judgment and experience basis. All job
specifications are identified and made through common sense, judgment and experience.
No practices regarding jobless world are made in job analyses like job specifications
that require skills of a person. Job description is designed according to the skills of a person
and not on task oriented in which specific duties are defined to be performed.



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Recruitment and selection
Recruitment is a process of collecting a pool of candidates for job openings.
At Boss Moulded Furniture employee planning and forecasting is done on the basis
of new product development, and trend analyses. If company is going to introduce new
product in the market, the employee staff level required is judged on the basis of it. Trend
analyses are also made to plan about employees in the organization.
No replacement charts, position replacement charts are made to forecast availability
of inside candidates. However it is done through observation and experience that who is
capable of what job. Promotion is done on judgmental basis.
Internal source of candidates are preferred over outside candidates. Website like
rozee.com and some other websites are used for giving ads for job openings at Boss
Moulded Furniture. Advertisement in newspapers is also given for getting a pool of
candidates.

Testing and selection
Candidates are tested by work samples and written tests. In written test job related
questions are asked to be responded to candidates. For example if the company is going to
appoint an accountant. The candidate is checked to perform account work, perform different
activities in computer. The candidate confidence level plays an important role in selection of
candidate at job as well.

I nterviewing
Interview is face to face talk in which oral answers are acquired to oral enquires.
Interview may be of different type like exit interview, appraisal interview, selection

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34
interview. But we mean is selection interview. How an interview is used by the boss as a
selection tool for the employees.
Interview is also used as selection tool for employees. In interview a candidate with
job, company knowledge as well as with good confidence is preferred over other. The
interview is conducted by supervisor and human resource manager. Unstructured interview
is conducted for selection of employees.

Orientation
Orientation is a process in which new employees in organization are welcomed and
given background information regarding the organization like history, rules regulations etc.
At boos an orientation is given by co ordination of human resource department and
supervisor of the candidates job. The whole process is conducted by human resource
managers assistant and content of orientations are decided by the supervisor. Candidates are
given information regarding the rule regulations of organization, its history, basic functions
and its products.

Training
The process of teaching the employees the basic skills they need to perform their
jobs is called training.
At boss all the employees are trained on the job. The contents of training are decided
by the supervisor alone. Employees are trained by doing the work or job. A supervisor
supervises the employee performance on work and gives feed back to employee.
Succession planning is planning to fulfill the key management positions in the
organizations that may be in future. A new manager is rotated over different departments to
learn about all the processes or functions performed in each department. Coaching is a basic
method used to train the managers. Managers are also given opportunities to attend

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35
workshops conducted by Howard University or other high ranking universities learned
instructors. These workshops may be from 1 day to three days and cost average Rs. 25000 to
30000 per person.

Appraisal of employees
Performance appraisal is evaluation of an employees performance on job. It
measures how good an employee in efficiently performing his or her jobs.
At Boss Moulded Furniture performance appraisal form is used to check the
employees performance. Appraisal form contains different marks regarding different
activities and behaviors of employees. Employees are given against total number of each
activity and his or her behavior according to his behavior and extent of specified activity
performed by him. Performance appraisal form is filled twice a month and supervisor
conducts the appraisal.

Compensations
Top management compensations is fixed on monthly basis with different benefits are
offered to them including different benefits like traveling allowance, insurance etc. whereas
productions and sales personnel compensation is according to their output and targets
achieved. Variable pay system is used to compensate sales and productions personnel.

Health and safety
All employees social security cards have been made for health purposes.



Boss Moulded Furniture Gujranwala

36

Disciplines and norms
On time job is a compulsory rule for all employees. No employee can be late without
genuine reason. Work should be performed on daily basis. No pending of work is allowed. If
pending work affects a greater number of personnel and decision making the person should
given in written when he will complete his work.

Production department
Boss molded furniture is the only organization of its kind in Pakistan which is
producing a verity of products. Product range of Boss Moulded Furniture is greater than all
of its competitors. All of the machinery which is used for the production is imported and has
the capacity of running 24 hours a day. Plastic furniture products that have greater turnover
and are ever available are being produced 24 hours a day with no gap. Firm has internal
employees for the maintenance of machinery. But if and when required, company hires
external professionals for the repair and maintenance of the plant and machinery. As Boss
Moulded Furniture is producing a considerable range of products, so it used batch
production and lot production. For the sake of production of such a large verity company is
using different methods of production.
There are three different methods that are used for the production of plastic furniture:
There are several ways of making of plastic furniture, here lets say a chair. In a
process named as rotational molding, plastic polymer is injected along with the metal mold.
It is then heated to a melting point. Then mold containing the plastic grain is turned
manually to different directions. It helps distribution of plastic evenly into the mold. After a
while, Machine is stopped and cold down. A brand new hallo chair is then extracted from
the machine.
The most important and in operation process of plastic furniture formation is called
as injection molding. This method of production of chairs is being used by the Boss

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37
Moulded Furniture for the production of solid plastic chairs. Here, again a metal mold is
required.











In this process, plastic grains are heated and then poured into the mold and then cold.
This is a very critical process of production; workers of Boss Moulded Furniture are trained
well to putt plastic grain at constant rate resulting into a uniform result.
For creating patterns and channels in the chairs, a gas pressure is used to push the
plastic deep into to the mould. By this process strength of the chair is maintained.
Sometimes, different kind of plastic are mixed together to impart strength to the
plastic furniture.


Plastic polymer grain
is put into the mold
Plastic is heated
until it melts
After every 90
seconds a chair is
extracted
After if gets the into
the mould correctly,
it is cooled down

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38
Store Department
Boss Moulded Furniture has a well mannered store department. This department is
performing a number of functions which are as follows.

Warehousing
As it is the nature of the business of Boss Moulded Furniture, it requires considerable
storage function. So it has a separate department for this purpose. The department performs
the function of storage of goods of all kinds. Boss Moulded Furniture has four large
godowns in Gujranwala for the purpose of storage. Boss Moulded Furniture does not want
their customers to wait for their orders so Boss Moulded Furniture maintains a certain level
of stock which ensures availability of products all the time.

Maintains the levels of stock
This department is responsible for the maintenance of levels of inventory. As Boss
Moulded Furniture does not operate on just-in-time philosophy because of continuously
changing and unpredictable demands, it has to maintain a minimum level of stock. When
levels of stock reach to its minimum levels, the store department informs the production
department to boost production.

Supply of material to the organization
Not only the store department maintains stock of goods for sale but it does maintain
stock of all the necessary material which is required for the production and it also has all the
supplies which are required by the organization for its functions. Infect if any department of
the firm requires anything needed, it has to contact with the store department of the firm.


Boss Moulded Furniture Gujranwala

39
Acts as a bridge between two departments
This department acts as a bridge between purchase department and production
department. Production department does not have direct contact with the purchase
department. If production department needs anything for production, it has to contact with
the store department and then store department informs purchase department to purchase the
things required by the production department.








Quality control department
Quality control department of the firm is comparatively small department as compare
to the other departments but it is outperforming its functions. This department is dually
responsible for the quality of the products of Boss Moulded Furniture. Boss Moulded
Furniture claims the best quality. The professional works of Boss Moulded Furniture are
critically performing their duties to ensure the quality of the products. Quality control
department is performing following functions:
Employees of the quality control department check either the right material is
used for the production or not.
Production
department
Store
department
Purchase
department

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40
They always monitor the production process. They ensure that work is being
performed efficiently or not. If the machines are not correctly timed, it may
affect the quality of the products.
They perform all the necessary tests to check out the quality of the product i.e.
durability of the product, design of the product, e.t.c
They continuously analyze the work and see if there is a need of improvement
of the production process for the betterment of quality and if how they can
reduce the time of production.

Purchase department
Because of the large verity of products offerd by the Boss Moulded Furniture, the
firm has to purchase a verity of material. Boss Moulded Furniture has almost 100 suppliers
form which it purchases different kinds of materials. Purchase department is responsible for
the purchase of material for production such as plastic grain, cushions, steel frames, tools for
machinery, maintenance tools, delivery trucks e.t.c. It is also purchases supplies for the
office. Purchase department is responsible for daily production operations of the company. It
provides all the necessary things for which it receives orders from store department. In order
to maximize the firms profitability, purchase department of the firm ensures that it is
receiving material for best price. Also for the purpose of ensuring quality, it also ensures that
it is purchasing material of good quality.
In Boss Moulded Furniture, every employee of the organization is allowed to contact
with the purchase department for the required supplies. For example if a computer system is
needed by a department, after passing through a purchase protocol, he gets what is required.
Purchase department handles all of the paper work also which is necessary for the accounts
department.



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41
I n/out Department
This is the department of the firm which keeps the record and a check on what is
going out of the factory and what is entering into the factory. A gate pass is prepared for
everything which is entering or leaving the factory. This department has the record of
which products are going to which godown and it also ensures that quantity leaving the
production area is equal to quantity in the godown.

Taxation Department
As Boss Moulded Furniture is a manufacturing organization, so it has to pay the
sales tax on its products. Taxation department has the responsibility to calculate all the taxes
payable sales tax and all other taxes. This department deals with all tax related matters if and
when they arise. Most of the organizations in Gujranwala do not have their separate tax
department hence they have to bear extra cost when they hire and external professionals.

Research and Development
The ongoing commitment of an organization today is nothing without the R & D
department of the organization. This department of the firm is highly equipped with latest
technology laboratory, highly professional and competent researchers are the part of R&D
department of Boss Moulded Furniture. This department is continuously engaged in the
activities like:
For the safety
Products should not contain material infectious to health
Research about production process of the organization
Evaluating and recommending different methods of production
Visit the markets to conduct the market survey
How to implement different changes into the corporation

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42
Research for new product development
Need and want analysis
Work environment analysis

Audit Department
Company has its own internal audit department which also performs following important
functions for the firm:
To check and compare gate pass
Check the paper work before it is entered into the accounts department.
Interview employees of the firm time to time to ensure either they are
performing according to standards or not.
Physical survey of stock
They check and compare sale orders
At Boss Moulded Furniture, all of the goods are dispatched from GD-1 and if
there is an error or mistake, audit department watches and corrects it.
To see either someone is trying to exercise fraudulent activity.
Keep an eye on the operations of all other departments.

Work done by me at Boss Moulded Furniture
Boss Moulded Furniture is a well organized and well mannered organization among
all other organizations of its size in Gujranwala. Doing internship with this organization was
a very good experience for me. I have been an active member for the firm for six weeks and
I have performed a number of activities during my internship. Employees of the firm were
very cooperative and they provided me with all the necessary practical knowledge and skills
that were needed for the practical work assigned to me.


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43
Following was my work experience there at Boss
At day one, I was interviewed by Mr. Naim the H.R manager of the firm. I was asked
about my interest where I want to do my internship, what is my qualification e.t.c. Next day
I was introduced with Mr. Rizwan, Manager of Accounts department of the firm and then I
was associated with an accountant Muhammad Zakria. Muhammad zakria was an
experienced accountant of the work and he first gave me orientation about the accounting
software of the firm. From where they have acquired that software, how an addition to the
attributes and functions of the software is made and how it is maintained. Zakria Was
handling the debtors of the firm, maintaining their balances and checking for the policy
discounts. Next day, I was told about the 5% working of the discount that how it can be
performed on the software. Next day was the day of shifting account balances of 2011 into
the opening balances of 2012. It was a much difficult work for me. I barely understood their
method. Next day there came a case off addition of new customer. An easy task got by me
very easily and I have performed it once. Next, I was told about kinds of customers and
about some policies of the firms like win boss bonus.

Error Day
After this, software got the error, software makers are called to eliminate this
disturbing error which had been disturbing the work after every 10 minutes. This matter was
cleared in two days and an incidence of this kind never happened again.

I nvoice Formation Desk
Then after having a considerable knowledge about one desk activities, I decided to
move towards next desk and with the permission of head of accounts department, I moved
and get associated with an accountant named Mr. Umar. I was told about the procedure how
the organization use to prepare the sale invoices. Then for a whole week I stayed with that

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44
accountant learnd and understood about invoice formation, entry, dispatch of invoice, cross
checking of invoice e.t.c

I nterview days
There came the days when company was in need of employees and they had been
coming continuously for three days for interviews. Head of accounts department was in the
interview panel. I took interest and watch I use to watch persons who were coming for
interviews. I asked them for the procedure of candidate selection. I too took part in interview
and it was a very good experience for me. It just broke my freight and increased my
confidence.

Bank Reconciliation desk
Then during final days, I joined the person who used to prepare bank reconciliation
statement Mr. Zeshaan. I had already studied that concept at the University and it greatly
helped me in understanding their practical work about bank reconciliation statement. Their
procedure of doing such work was quite different than what we studied at University but I
got it up to a fine level. Person was also with the responsibilities of Journal voucher entries.
I was told about them too.

Department visits
Then there came the time to collect data for my internship report. So I visited most of
the other departments of the firm for the purpose of data collection. I interviewed many
persons and collected information about the activities and working of the departments. I also
met with the General Manager of the Boss Moulded Furniture for this purpose. He provided
me the company profile and gave me useful information.

Boss Moulded Furniture Gujranwala

45

SWOT analysis
The following is SWOT analyses of Boss Moulded Furniture:-
Strengths
The following are strengths of Boss Moulded Furniture.
Long Range of Products
Long range of products ranging from full plastic chairs range, steel plastic
study chairs rage, study chairs and desks, public sofa and steel plastic chairs,
public sofa and snack table, executive and revolving chairs range, tables and
household items e.g. plastic pots and baby range products including benches
and small plastic chairs for kids is a good strength of boss over its competitors
in the market.
R & D
Boss has established well mechanism for new product development. It has its
own research and development department that introduce new range of
products, designs and styles periodically.
Production according to customer Specification
Boos moulded furniture has capability of producing products according
customer specifications and needs. It provides products that best suits with
customer requirements.
Well Organized Departments
Its departments are integrated in a better way for efficiency and effectiveness.
And now these departments are going to be integrated by computers.


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46
High Tech Machinery
Imported high tech machinery is available for productions. Machinery dies and
material is imported from china and other countries for producing quality
products with minimum variations in quality of products produced.
Human Resource
Human resource e.g. its personnel is highly qualified and co operative,
motivated, committed to their organizations. Staff is satisfied from
environment, benefits, work level etc. All the staff strives for excellence, low
cost and quality product production.
Partner Suppliers
Boss Moulded Furniture has good suppliers as business partner that provide
them quality material for quality products.

Weaknesses
Its departments are not integrated through IT yet.
Sometimes there is over stock of products to meet the customer demands and
order fulfillment.
There is currently a problem is being faced by the organization regarding
maintenance and over hauling of machines because of less skilled mechanics
and technicians.
It has not sufficient funds for covering foreign markets.
Standards for the departments to work on are not yet designed correctly.




Boss Moulded Furniture Gujranwala

47
Opportunities
New range of household like plastic dust beans, tubs for childrens, crates for
soft drinks can be introduced.
Plastic doors and beds can also been manufactured in future.
Company can increase its sales by exporting to other countries.
New product development opportunities are always available for the Boss
Moulded Furniture
Yet the firm is not using finance from any bank, but there is an opportunity for
the firm to do so.
With the use of debt, company can diversify its Strategic Business units

Threats
Government policies, taxes, are threats to the organization.
New system of registration of local small level producer is also affecting
company sales. Any person can start manufacturing without license from a
regulatory authority of plastic products.
High prices of petrol day by day are hindering the company business. Petrol
prices inflation is directly linked with the raw material of plastic product.
Because the raw material used in manufacturing of plastic product is by
product of petrol.
Load shedding is also restraining factor in firm functions.





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Financial analysis of the firm
What is financial analysis (general view)
Financial statement analysis is the process of examining relationships among
financial statement elements and making comparisons with relevant information. It is a
valuable tool used by investors and creditors, financial analysts, and others in their decision-
making processes related to stocks, bonds, and other financial instruments. The goal in
analyzing financial statements is to assess past performance and current financial position
and to make predictions about the future performance of a company. Investors who buy
stock are primarily interested in a company's profitability and their prospects for earning a
return on their investment by receiving dividends and/or increasing the market value of their
stock holdings. Creditors and investors who buy debt securities, such as bonds, are more
interested in liquidity and solvency: the company's short-and long-run ability to pay its
debts. Financial analysts, who frequently specialize in following certain industries, routinely
assess the profitability, liquidity, and solvency of companies in order to make
recommendations about the purchase or sale of securities, such as stocks and bonds.

Analysts can obtain useful information by comparing a company's most recent
financial statements with its results in previous years and with the results of other companies
in the same industry.

Liquidity Ratios
Trade creditors, creditors for expenses, banks and other people who want to business
with the organization are concerned with the liquidity position of the organization. Liquidity
ratios of an organization tells us that either the company in position to pay off its short term
debts or not.


Boss Moulded Furniture Gujranwala

49
There are three ratios which are to be calculated for the purpose:
Ratio 2010 2009 Result Reason for
change
Current Ratio 2.91:1 2.41:1 Favorable in Stock and
A/R
Quick Ratio 1.91:1 1.32:1 Favorable in bank
Asset test 0.58:1 0.52:1 Reliable in bank

Current ratio
Items involved:
Current assets and current liabilities
Quick Ratio
It measures liquidity of the firm that either the firm is able to pay off its obligation
within a comparatively shorter period of time.
Items involved:
Current assets stock prepaid expenses
Asset test
It is the absolute measure of the liquidity of the firm that to what extent the firm is
ready to pay off its liabilities right now
Items involved:
Cash and bank, A/P of the firm
I nterpretation of the Liquidity ratios of the firm
Boss Moulded Furniture is an organization is performing nowadays very effectively.
It is continuously increasing its business operations and its trying to diversify its range of

Boss Moulded Furniture Gujranwala

50
products faster than other organizations or plastic furniture manufacturers. Its stock has
increased because of increasing and fluctuating future demands for the products. Boss
Moulded Furniture has been growing very fast and it had to increase and maintain its stock
in order to make availability of the product any time. As it is the nature of the business, so
had done it (increase the inventories). Company has to increase its cash at bank for meeting
its expenses.

Activity ratios/ turn over ratios
Ratio 2010 2009 Result Reason
Inventory turn
over
8 7 Very good Increase in sales
Inventory
Conversion
period
41 days 52 days Very good Increase in
sales, Company
policies
A/R turnover 15 times 12 times Favorable Recovery
policies
improved
A/R Collection
period
24 days 30 days Favorable Recovery
policies
improved
Payables
turnover
14 times 15 times Unfavorable Increase in
payables
Average
payment period
26 days 24 days Not good Increase in
payables
Working Capital
turnover
32 times 28 times Very good Work efficiency



Boss Moulded Furniture Gujranwala

51
I nterpretation and explanation
I nventory turnover ratio
It indicates that how efficiently the stock of finished goods is sold.
Items needed
Sales, gross profit, average inventory
Receivable turnover ratio
It tells us that how efficiently we are dealing with our customers and how much we
are selling to them and how much we are collecting from them.
I tems used in ratio
Net sales and Accounts receivables
Payable turnover ratio
This ratio interprets the performance of the company regarding purchases and
payment for them.
Item needed:
Net purchases and average Accounts payables
Capital turnover ratio
It tells us how we are using our capital for the production of goods. More capital
turnover shows that the organization is performing very well.
Boss Moulded Furniture
Overall the concerned organization is doing very good job. It has improved its sales
policy, recovery policy and purchase policy. Improvement in sales discount policy greatly
helped the organization in recovery. Now, customers of Boss Moulded Furniture are willing

Boss Moulded Furniture Gujranwala

52
to pay against their invoices sooner for the sake of getting policy discount from the company
and also they are always keep looking forward for the bonuses which the company has
recently announced. Over all companys activities are very good. As it evident from the
results of ratios, company is performing very good and improving very rapidly.

Profitability of the company
Gross profit of the company has also been increasing since past few years. Gross
profit ratio of the company has increased from
G.P = 24% in 2009
&
Now in 2010 the gross profit of the company is 27%
Changing economic and energy conditions of Pakistan have affected the company
very badly that way growth in the profits of the company is comparatively slow. Company
has imported heavy generators and in extreme load shedding use of generator may cause an
expense of Rs. 300000 per day. So it does affect.
Solvency of the company
Boss Moulded Furniture is the company which is operating on zero debt bases. That
way it does not has a finance department. It has nothing to do with the long term debt etc.
According to General Manager of the Boss Moulded Furniture, Company does not
have any plans of using debt in near future.
So, there is no dout about the companys financial soundness for the long run. Nobody
has to hesitate in doing business with the Boss Moulded Furniture.



Boss Moulded Furniture Gujranwala

53



Conclusion
Firms like Boss Moulded Furniture fall under the category of small and medium
industries of Pakistan. What I have concluded from my internship is that Boss Moulded
Furniture is comparatively a sound organization in the local industries of Pakistan. Although
the ongoing conditions of Pakistan are negatively affecting all the industry of Pakistan, Boss
Moulded Furniture somehow a little bit resistant to it because of its soundness. All the firms
of sizes of Boss Moulded Furniture should be supported by the government of Pakistan
because they can play the very important role for the economy of Pakistan. Such an
organization is providing very good opportunity of doing internship for the students from all
over Pakistan. It clearly means that the management of the company knows the value of
education in Pakistan and knows that all the educated persons should be encouraged hence
the organization is doing very good job of giving practical knowledge to the students with
due diligence.










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Refrences

www.google.com
www.scribd.com
www.bossplas.com
Book Consulted
Advance Accounting by M. Arif and Sohail Afzal
Men Interviewed
Accountant, Mr. Muhammad Zakria
Accountant, Mr. Umar
Accountant, Mr. Muhammad Zeshan
Mr. Rizwan, Head of Accounts department Boss Moulded
Furniture Gujranwala
H.R Mannager Mr. Muhammad Naim
Mr. Imran Gull, General Manager Boss Moulded
Furniture Gujranwala

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