Full Intrenship Report

Pak Elektron Limited (PEL)
INTERNSHIP REPORT
AT
PAK ELEKTRON LIMITED
(14KM Ferozepur Road, Lahore)
OSHAQUE ALI
SP19-BBA-049
Session (20197-20221)
DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

ISLAMABAD, LAHORE CAMPU
START DATE: 2501 JulyAugust 2022 END Date: 09

SeptemberAugust 2022

DECLARATION
I, OSHAQUE ALI , Roll No: SP19-BBA-049, student of BSBA (FINANCE), Session

2019-2022 hereby declare that the matter contained in this internship report titled,
“Internship at Pak Elektron Limited” is my own work and has not been printed,
published and submitted as a report work in any form of any University.

Date:__________
__________________
Signature
Oshaque Ali
SP19-BBA-049
ORGANIZATION INFORMATION

Organization PakK Elektron Limited
Head Office 14km FreozepurFerozepur Road, Lahore
Legal Status A Public Limited Company
Authorized Capital Rs: 11,000,000
Paid Up Capital Rs: 8,560,000,000
Ordinary Shares 856,010,000
Subsidiary Kohinoor textile, Kohinoor Energy Limited.
Company Website www.pel.com.pk


Contents
Executive Summary...............................................................................................................................7
Background of Pak Elektron (PEL).....................................................................................................8
Introduction..........................................................................................................................................8
Group Profile.......................................................................................................................................8
Kohinoor Textiles...........................................................................................................................8
Pak Elektron Limited (PEL)..........................................................................................................9
Kohinoor Power Company Limited..........................................................................................20
Kohinoor Energy Limited............................................................................................................20
SARITOW SPINNING MILLS LIMITED (TEXTILE SPINNING)..............................................20
THE FOUR SEASONS..................................................................................................................20
Red Communication Arts Limited............................................................................................20
History.................................................................................................................................................21
Business Operations...........................................................................................................................23
Organizational Structure (Organizational Chart)......................................................................23
SWOT Analysis..................................................................................................................................24
Strengths........................................................................................................................................24
Weakness.......................................................................................................................................24
Opportunities.................................................................................................................................25
Threats............................................................................................................................................25
Financial Ratios Analysis...............................................................................................................26
Profitability Ratios........................................................................................................................26
Liquidity Ratios.............................................................................................................................29
Activity Ratios:..............................................................................................................................30

Market Value Ratios.....................................................................................................................33
Marketing Strategy...............................................................................................................................35
Products:................................................................................................................................................35
Price:........................................................................................................................................................35
Place:.......................................................................................................................................................35
Promotion:..............................................................................................................................................35
Competitive Strategy.......................................................................................................................36
Learning as a Student Interne...........................................................................................................36
Finance Department.........................................................................................................................36
Corporate Finance........................................................................................................................37
Treasury Section...........................................................................................................................39
Budgeting Section........................................................................................................................40
Accounts Receivable Section....................................................................................................40
New Knowledge Acquired..............................................................................................................41
Problems Encountered....................................................................................................................41
Other Activities..................................................................................................................................41
Recommendations...........................................................................................................................42
Glossary..............................................................................................................................................44
Reference...............................................................................................................................................45
1. Executive Summary....................................................................................................5
2. Background of Pak Elektron (PEL).............................................................................6
Introduction.....................................................................................................................6
Group Profile..................................................................................................................6
Kohinoor Textiles........................................................................................................6

Pak Elektron Limited (PEL).........................................................................................7
Kohinoor Power Company Limited.............................................................................7
Kohinoor Energy Limited.............................................................................................8
SARITOW SPINNING MILLS LIMITED (TEXTILE SPINNING).................................8
THE FOUR SEASONS...............................................................................................8
Red Communication Arts Limited...............................................................................8
History............................................................................................................................8

Executive Summary
Electronics is one of This is my semester project regarding the Electronics
Manufacturing Company, the name of Company is “Pak Elektron Limited” which also
knows as a PEL. PEL is the one best Electronic Firm in Pakistan which offer their
Products in Local Market and in the Global Market.
PEL is situated in at the Main 14km Ferozepur Road, Lahore. PEL divided his products
two division. First Division offer Home Appliance Products like Air Conditioner,
Refrigerator, Washing Machine , Smart LED TV and many other products and Second
Division is Power Division which offer Distribute Transformers , Power Transformer and
Energy Meters. PEL earn his most of Revenue from the Appliance Division. Appliance
Divisions Contribute the Rs: 34,470 Million which is 62.2% of Total Annual Revenue of
PEL. I am writing this report about my six week internship in Pak Elektron Limited. This
six week are most valuable for my practical life and future life, because during this six
week I learn how to apply theoretical knowledge to take decision and how to work in
office culture. In PEL done my internship under the supervision of Mr Waqas Ahmed
who is the team leader his Budget Section of Finance Department. In those Six week I
understand that how to Organization Collect money through Loans, Shares and Bonds.
Also understand the process that how to deal with suppliers and import raw material
from an other Country and How to Estimated Budget of Next year which factors effect
on it.

the largest industrial sectors in the world. Pakistan has huge potential for the technology
industry which includes electronics manufacturing. The electronics industry, especially
meaning consumer electronics, emerged in the 20th century and has now become a
global industry worth billion of dollar industry. Modern society uses all manner of
electronic devices built in automated or semi-automated factories operated by the
industry
Pak Elektron Limited is a leading manufacturer of electrical components and solutions,

serving the global market. We pride ourselves on our reputation as one of the most
trusted names in the industry, with more than 40 years of experience and a portfolio that
includes products like Printed Circuit Boards (PCBs), LED Lighting Solutions, Electrical
Enclosures, Plug & Socket Assemblies, Metal & Plastic Fasteners, Connectors, and
many more. Pak Elektron is a vertically integrated manufacturer and exporter of
Electrical and Electronic components, assemblies and systems. The company has been
in the business of supplying Printed Wiring Boards (PWBs) and PCBs, LED lighting
solutions, electrical enclosures, plug and socket assemblies, metal and plastic
fasteners, connectors for more than 40 years. The Pakistani facility is a state-of-the-art
PCB production line with an installed capacity of 200,000 sq. meters per month. The
Chinese facility is spread over an area of 2500 sq. meters, and is used for the
production of plastic components, metal parts, and printed circuit boards. The company
has two offices located in Lahore, Pakistan, and Shanghai, China. The company’s
products are exported to over 50 countries around the world.
The electrical and electronics industry is one of the most important sectors in the world.
It is also one of the most diverse, owing to the vast range of products that it
manufactures. From power generation and transmission to defence and aerospace, the
industry covers it all. With such massive potential, the industry is expected to grow
significantly in the coming years. To stay ahead of the curve and meet the rising
demand, companies in the industry must invest in advanced machinery and equipment.
They must also invest in hiring skilled and experienced employees. Given the

importance of electrical and electronics manufacturing, it is essential that you choose

the right partner. So, let Pak Elektron be your trusted partner as we work side by side to
grow your business.
Background of Pak Elektron (PEL)
Introduction
Vision:
To excel in providing engineering goods and services through continuous improvement.
Mission:
• To provide quality products and services to the complete satisfaction of our customers
and maximize returns for all stakeholders through optimal use of resources.
• To focus on personal development of our Human Resource to meet future challenges.
• To promote good governance, corporate values and a safe working environment with
a strong sense of social responsibility.
Group Profile
In 1948, the Saigols migrated from the India and initiated their business in
newborn Country Pakistan (Faisalabad), the textile city of Pakistan. Saigol Group
is the one of top business tycoon family in Pakistan.
Saigol start their Business under the banner of Kohinoor Industries Limited
Kohinoor Textiles
In Pakistan Saigol Group start their Business operation with The Kohinoor Textile
Mills under the Group of Kohinoor Industries limited. The Kohinoor textile Mills
are best at to quality control of raw material to finished product manufacturing.
Its one of the best laboratory in Pakistan for testing of Textile raw material.
“In 1948, Kohinoor Textile is the first textile mill to open LC (Letter of Credit) with
National Bank of Pakistan worth 8 million.” (Nasim Saigol said in an Interview)


In 1978 the Major Share of PEL was acquired by the Saigol Group of Companies.
At that time company was manufacture only transformers and switch gear. In the
direction of Saigols, PEL expand their Production line into Refrigerator, Air
Conditioner and many other Products.
The Production line of PEL Divide into two Divisions each of them offer wide
range of Products.
 Appliance Division
 Power Division
Appliance Division (AD)
PEL is the one of the most famous Company which provide a different Products
In the Home Appliance Since the 1981. PEL is the Market Leader in the Home
Appliance due to his Quality Production, Low Cost Production and Customer
Loyalty. Research and Develop Sector of PEL Continually Work on the Market
Competitive Products.
Appliance Divisions Contribute the Rs: 34,470 Million which is 62.2% of Total
Annual Revenue of PEL.

Product Line of Appliance Division.:
 Refrigerator
PEL start Refrigerator

Manufacturing and Sale
Business in 1987 with the
Technical Corroboration from
IAR- SILTAL Italy. PEL Offer
the 70+ Variants in the
Refrigerators. Which divide
into different Series like a
Glass Door Series,
INVERTON Series and Life
Series.
Feature of PEL Refrigerator:
 Direct Cool System
 Energy Efficiency
 Door lock system\
 Different Design
 Warranty

 Deep Freezers

PEL start the

Business of the
Deep Freezers
in 1987 i
technical
collaboration
with ARISTON
Italy. PEL
Introduce the 15
Variant of
Freezers and
those Freezer
are Environment Friendly.
Many Ice Cream and Beverage Companies get the Customized Freezer
which satisfied the Need. Like Coca Cola Pakistan, Unilever, Friesland
Campina, Engro Foods, Sukkur beverages (Pepsi) & Pakistan Fruit Juice
Company are the major customers of PEL freezers.
Feature of Deep Freezer

 Automatic and Manual temp setting
 Ice Maker
 Moveable baskets
 High Quality

 Air Conditioner

PEL entered in the

Business of
Window Air
Conditioner in 1981
and remain the
Market Leader until
when market shift to
the Split AC due to
Technological
Advancement. And
then PEL start Manufacturing Split Air Conditioners, through Innovation
again Receive the Market.
This time PEL Manufacture 40+ variants of 1 Ton, 1.5 Ton and 2 Ton ACs
with different categories.
Feature of Air Conditioner
 Remote Control
 Sleep Mode
 Eco Friendly
 Digital Thermostat

 Microwave Ovens

PEL is currently producing 13

variants of Microwave ovens.
Microwave Ovens have
capacity of 20 Litters to 43
Litters.
 Water Dispensers

To meet the Local

demand of market
PEL start the
manufacturing of
Water Dispensers
in 2017. This time
Company Produce
8 different variant
of Water Dispenser.
Feature of Water
Dispenser.
 Clean and
Convenient
 Cold and Hot
Taps
 Room
Temperature
Tap
 1 year warranty
 Washing Machines

PEL start the Manufacturing of

Washing Machines in July 2019.
PEL currently start the Production
of 10 different variants with 8.5 ~
12.5 Kgs washing capacity which
are further divided in to three
categories which are mention
below.
o Single Washers
o Twin Tub
o Fully Automatic.
Feature of Washing Machine.

 Stylish Design
 Deep Clean
 Hygienic Wash
 Advance Technology

 Smart LED TV
PEL entered in the Business of

Smart LED TV in 2018 due to the
constant increase in the demand
of market. PEL Manufacture the
Smart LED of different sizes 32
inch, 40 Inch and 55 inch.
Feature of Smart LED TV

 Fast User Interface
 Streaming Video Service
 Music Streaming
 Browse the web

Power Division (PD)

PEL was founded in 1956 and from that time PEL serve the Power division.
Through Power Division PEL start to serving the Power utilities, industries,
individual customers, housing and commercial projects by providing
reliable, customized and cost effective solutions.
With the Change of Technology PEL understand the need of their Customer
and Producing those products which support the PEL to become Market
Leader in the Power Sector. The company aims to maintain this competitive
edge and at the same time keep striving to improve it further by continuous
R&D, creating new knowledge and adapting to global developments in
technology and product design. Ever increasing local market share,
growing export orders, numerous successful power projects and greater
than ever base of satisfied customers are evidence to these aspirations.
PEL is the major supplier of Water and Power Development Authority
(WAPDA).
PEL being ISO certified company has a comprehensive Quality
Management System that is Consistent with ISO 9001-2000.
Product Line Power Division

 Distribution Transformer

PEL start the

Manufacturing of
Distributionor
Transformer since
1958 and these
transformerthese
transformers are
the Premium
Product of PEL.
PEL offer the
different type of
Products in which
include oil
impressed core type transformers, dry type transformers and auto transformers.
In those transformer provide the different voltage range up to 33 KV ratings from
10 KVA to 10 MVA.
Due to his Performance and customer Loyalty PEL is Market Leader in the Local
Market and to meet the international standards in 2009 PEL established State-of-
the-art at transformer manufacturing facility at 34-KM Ferozepur Road.
PEL also Export their transformers to another Countries.

 Power Transformer
Extensive experience and

success in manufacturing
distribution transformers led
to the establishment of
power transformer division in
2005. This Division has
Manufacture Power
Transformer rating 31/40
MVA, 20/26 MVA and 10/13
MVA for 132 KV level. To
compete in Global Market
PEL has combined its technical expertise with GANZ, which are a renowned and
experienced Hungarian transformer manufacturer.
PEL is also Export their Power transformers to international Customers with
specifications and their Special Requirement.
 Energy Meter

PEL start the production of Energy Meters in

1992 by launching single and three phase
electromechanical meters, under license from
ABB (USA). WAPDA and KESC are the Major
Customer of PEL which are buying Energy
meters with quality standart and Specification.
 Switch Gears

PEL entered in Switch Gear business since

its inception in 1958. PEL is one of the
leading manufacturers of Switch Gears in
Pakistan. They are mostly used in
Industries. In Production of Switch Gears
include (i)MV&LV Switch Gears, (ii)MV Metal
Clad Switch Gear Cubicles, (iii)MV Pad
Mounted Transformers, (iv)Kiosk Type
Compact substations, (v)LV Distribution
Panels, (vi)PFI Plant, (vii)Motor Control
Centre and (viii)Bus Tie Duct.
 EPC Contracting
PEL established EPC Contracting Business in 2006 which provide custom made
solutions to industries and Power Companies.

Kohinoor Power Company Limited

In 1991, the Saigol Group start their first power unit in Pakistan, in the Private
sector, was Kohinoor Power Company Limited. The Basic Object of Kohinoor
Power Company to take part in the Power Generation for Country. Its present
production capacity is 15 MW and WAPDA is the Sole customer of Kohinoor
Power Company Limited.
Kohinoor Energy Limited

In 1995, The Saigol Group was starting another power unit, Kohinoor Energy
Limited. Kohinoor Power Limited is a 120 MW power plant which located at
Lahore. The Annual turnover of Kohinoor Energy limited 14,538 Million rupees
(Annual Report 2022).
SARITOW SPINNING MILLS LIMITED (TEXTILE SPINNING)

In 1987, Saigol Group of Companies Start a New Mill with the name of Saritow
Spinning Mills Limited which located at Multan Road, Phool Nagar, District Kasur
which engaged in manufacturing of yarn.

THE FOUR SEASONS

The four Season is the first project of real state by Saigol Group. This project
launch in 2007 with the name of Four Season Housing Scheme that spans over
800 Kanals of land area with 1000 housing units of various areas. The object of
this project to provide the quality of life to residentials.
Red Communication Arts Limited

In 1996 Saigol Group was started another private limited company with the name
of RED COMMUNICATION ARTS LIMITED. The main aim of Red Communication is
to fulfil the Gap of an Advertisement Sector. It is PEL’s associated company by
virtue of common directorship.
History
Pak Elektron Limited (PEL) is the only manufacturer of electrical products in Pakistan. It
was established in 1956 in a specialized coordinated effort with M/s AEG of Germany.
In October 1978, PEL was taken over by the Saigol Group to purchase the maximum
number of shares. Since then, the company has embarked on a journey of development
and progress in the engineering sector and has created a number of different products
in the Power division, such as Energy, and has also adopted innovations to create
products for home appliances.
Pak Elektron Limited (PEL) is a pioneer manufacturer of electrical goods in Pakistan. It

was founded in 1956 in technical cooperation with M/s AEG from Germany. In October
1978, the company was taken over by the Saigol Group of Companies. Since its
inception, the company has always contributed to the progress and development of the
engineering sector in Pakistan by introducing a range of quality electrical equipment and
home appliances and producing hundreds of engineers, skilled workers and technicians
through its apprenticeship and training programs. . PEL is now a technological
forerunner and market leader in providing new products and services that meet the
ever-changing and technologically demanding needs of its customers. PEL's EPC
contracting division delivers custom designed and built MV and MV substations,
electrification of housing projects, industrial parks and optimal energy utilization
solutions for all types of industries and commercial customers. PEL aims to maintain
this competitive advantage while striving to further improve it through continuous
research and development, creating new knowledge and adapting to global
developments in technology and product design. An ever-increasing local market share,
2 growing export orders, numerous successful energy projects and a larger base of
satisfied customers are proof of these aspirations. PEL's works are spread across two
facilities in Lahore, the historic city and cultural center of Pakistan. The two facilities
cover an area of 1,033,200 square feet and 614,252 square feet. Both are equipped
with state-of-the-art technology, state-of-the-art testing facilities and an environmentally
friendly manufacturing process. The core of PEL's activity is its human resources. PEL
invests heavily in the professional development, upskilling and well-being of its human
resources. PEL's employees are its most valuable asset and PEL values them
highly.Pak Elektron Limited (PEL) is the only maker of electrical products in Pakistan. It
was established in 1956 in specialized coordinated effort with M/s AEG of Germany. In
October 1978, the PEL was taken over by Saigol Group of companies to buy the
maximum number of Shares. From that time company start the journey of Development
and advancement in Engineering Sector and create a number of different products in
Power Division like Energy and also take innovation to create a Home appliance
products.
Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan.
It was established in 1956 in technical collaboration with M/s AEG of Germany. In
October 1978, the company was taken over by Saigol Group of Companies. Since its
inception, the company has always been contributing towards the advancement and
development of the engineering sector in Pakistan by introducing a range of quality

electrical equipments and home appliances and by producing hundreds of engineers,
skilled workers and technicians through its apprenticeship schemes and training
programs. PEL is now technology forerunner and market leader in providing new
products and services to meet ever changing and technology intensive needs of its
customers. PEL’s EPC contracting division delivers custom designed and built HV and
EHV grid stations, electrification of housing projects, industrial parks and optimum
solutions for power utilization to all kinds of industries and commercial customers. PEL
aims to maintain this competitive edge and at the same time keep striving to improve it
further by continuous R&D, creating new knowledge and adapting to global
developments in technology and product design. Ever increasing local market share, 2
growing export orders, numerous successful power projects and greater than ever base
of satisfied customers are evidence to these aspirations. Works of PEL are spread at
two facilities in Lahore, the historical city and cultural hub of Pakistan. The two facilities
cover an area of 1,033,200 Sq ft and 614,252 Sq ft respectively. Both are equipped with
latest technology, state of the art testing facilities and environment friendly production
process. At the heart of PEL’s operations is its human resource. PEL invests heavily on
professional development, skill improvement and well being of its human resource.
PEL’s employees are its most valuable asset and PEL keeps them very dear.

Business Operations
Organizational Structure (Organizational Chart)

Shareholders
HR & Recurement Company

Audit Comitee Bord of Director Comitte Seceratory
Audit
Manager
Chief Executive
Officer
Director
Operations Head of Quality QC
Sr GM IR & A & AD
Sr Sales & Se GM Sale (AD) GM IT

Marketing
Head of EPC GM Suplly Chain GM Markeing (AD)
Sr GM Private Director Finance

Sales Financial Manager
Controller QHSE
Sr Manager GM Import and

Business Finance Logistic
GM Corporate
Finance

SWOT Analysis
The Strength, Weaknesses, Opportunities and Threat of PEL are discussed below.
Strengths and weakness relate to internal factor of organization while opportunities and
threats relates to external factor so according to these aspects analysis is below
Strengths
Strength is the main component of any company; strength is basically, a power point of
company. PEL has the following strengths which help organization to have a
Competitive Advantage over Competitors.
o Product Diversification
o Sufficient production capacity to absorb the increase in volumes
o Technical concert with international reputed organizations
o Advance Technologies
o Skilled Labour Force in Power Division
o Strong Research and Development Strategies
o Strong Dealership Network in whole Country
o Strong, efficient and broad after sales network
Weakness

Weakness is one of the major problems in any industry. PEL has many weaknesses
elements face now a day. Like another Companies PEL has also Weakness in his
Business. If the PEL overcome these weaknesses then it will be the Market Leader in
Appliance division. PEL loose some competitive edge in the following points:
o The Company has high financial leverage

o Lack of advertisement
o System variations
Opportunities
Opportunity is the edge point for every firm or industry. Opportunities is the external
factor for PEL through which company can get Competitive Advantage over Competitor
and earn Profit in Future. If PEL realize that opportunities then it will be more fruitful and
profitable for the company.
o Have Great opportunities for power division in future because Govt plans to
change the existing infra structure.
o Appliance Division Demand also increase day by day.
o Local industry preferential protection in international tenders.
o Export opportunity
Threats
In the Current Situation Every Firms have Many threats which are directly or indirectly
effect on the Company. So following are the main threats for the PEL:
o Availability of timely working capital

o Law and order situation of Pakistan

o Political Disturbance
o Dependence on WAPDA/ DISCOs Financial health
o Fluctuation in value of PKR
o Change in regulatory framework
Financial Ratios Analysis

Ratio Analysis is the most important and old technique of Financial Analysis. The ratio
highlights the factor which are directly or indirectly associate with successful and
unsuccessful firms, also reveal strong and weak firm. These ratios help to determine
that firm can be successful in future or not but these ratio are only indicators, not the
final judgement.
Profitability Ratios
All the Profitability ratios got increased during the last fiscal year that shows the
improvement in the company’s financial situation that help the company to enhance the
trust among the investors, Profitability ratios assess a company’s ability to earn profit
from its sales.
Revenue of PEL

Revenue
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
-
2021 2020 2019 2018 2017
The Revenue of the PEL increased by the 45% in 2021 as compare the previous year
which is the highest sale over the history of PEL, which effect all over the Ratios of
Company. PEL achieve the highest Sale due to the Advancement of Products and Offer
discounts their customers.
Return on Sale *(EBIT/Sale)
Return on Sale
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2021 2020 2019 2018 2017

Return on Sale ratio show that how much company efficiently deal with the Direct and
indirect Cost to earn profit, in this we divide the EBIT on total Sale. Net profit to sales
ratio increased drastically by 2.93% as compared to 2020. This was mainly due to
disciplined expense management and lower weighted average cost of debt as
compared to the last year. In 2020 lowest return on sale due to lockdown and corona
crisis in country.
Gross Profit Margin *(Revenue-COGS/Revenue )

Gross Profit Margin

35
30
25
20
15
10
0
2021 2020 2019 2018 2017
The Gross Profit margin show that company how efficiently deal with COGS and the
impact of COGS in Gross Profit. The gross profit ratio has shrunk by 1.09% as
compared to the previous year 2020 primarily due to the higher cost of production with a
weaker PKR. The value of PKR have direct impact on the income statement because
PEL import his 70% raw material from other countries which buy in Dollars.
Return on Asset and Equity

Return on Assets and Equity also improved by 2.01% and 4.05% against the previous
year. Which show the Company is efficient to utilize the Asset and Equity to Earn Profit.
Liquidity Ratios
Current Ratio
Current Ratio
2.5
1.5
0.5
0
2021 2020 2019 2018 2017
The current ratio a measure of a company's ability to meet its short-term obligations
from current assets and current liabilities, increased in the end of the year 2021 against
the previous year, due to an increase in debtors as a direct result of higher sales. The
same trend was also evident in the quick ratio a more direct measure of liquidity.
The Ratio of Current have depended on the Industry because Manufacturing industry
have a high Current ratio as compare to Service Industry. Manufacturing have a high
Current ratio due to Inventory.

Activity Ratios:
Inventory Turnover No of Days
Inventory Turnover No of Days

180
160
140
120
100
80
60
40
20
0
2021 2020 2019 2018 2017
Inventory number of days table show that how much time take by Finished Goods to
Sell out from the Warehouse of Company. In 2021, no of days decrease to 108 days
which show that 108 days inventory present in the Company Warehouse.
Inventory turnover ratio:

Inventory turnover ratio
3.5
3
2.5
2
1.5
0.5
0
2021 2020 2019 2018 2017
The inventory turnover ratio is 3.39 times which indicates that the company has good
inventory management and the demand for the products is higher as compared to the
previous years. In 2021, 3.39 times in a year show that a company repeat Inventory in
whole year .
Receivables turnover ratios:
Receivables turnover ratios
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2021 2020 2019 2018 2017

The receivable turnover ratio shows that the company operates on a cash basis and
has quality customers that pay off their debts quickly. 4.54 times show that company is
efficient to collect money as compare to previous years.
Payable turnover ratio:
Payable turnover ratio

30
25
20
15
10
0
2021 2020 2019 2018 2017
The increasing payable turnover ratio indicates that PEL is paying off suppliers at a
faster rate than its previous period. This means that the company has plenty of cash to
pay off its short-term debt in a timely manner.

Days to Sell Inventory:
In 2021 days to sell inventory for PEL was 13.93, indicating that the company is more
efficiently and frequently selling off its inventory, which means rapid turnover leading to
the potential for higher profits. It is much higher in 2021 as compared to the previous
years.
Market Value Ratios
Earnings per Share

Price per Share

7
0
2021 2020 2019 2018 2017
Price per Share ratio show the goodwill of company in the market and also show us the
market capitalization of company. As compare to previous year per increase the total
market value. This change through the stock exchange market.
Price Earnings Ratio

Price Earnings Ratio
120
100
80
60
40
20
0
2021 2020 2019 2018 2017
P/E ratio stands for price-to-earnings ratio. It is the ratio of a company’s share price to
its earnings per share (EPS). Investors use this ratio to compare performances of
similar companies and to compare companies against their own historical records. A
high P/E ratio might indicate that a stock’s price is high relative to its earnings and
potentially suggests that the stock is overvalued. On the other hand, a low P/E ratio
might mean that a stock is undervalued. So in 2021, P/E ratio is less than 2020 so the
company stocks is undervalued.

Marketing Strategy
The Marketing Strategy of PEL is to target the niche market means PEL is going to
target the low-income class which is middle class due to this segment the prices PEL’s
are appropriate.
Now, I will describe the mix marketing strategy of PEL, in which 4Ps will be discussed.
Products:
PEL is one pioneer electronic company which is working in Pakistan. PEL is offering
different electronic products like air conditioner, refrigerator, power division etc. the
quality of their product is high with affordable price.
Price:
The price of PEL products are low as compare to its competitor special in the
appliances. This has been settled due to its segment. Which is low income or middle
class.
Place:
PEL is confirming its product availability on brick and click channels. Because the PEL
is powerful network dealer so the products of its are available on mega stores. PEL has
strong distribution channel.
Promotion:
PEL advertise its product through traditional channels like television, newspaper, also
has its own Facebook page, websites. Now it made its subsidiary company for just
frequently advertising and creating image in the customers mind as compare to its
competitor.

Competitive Strategy
 The Competitive Strategy of PEL is target the Middle Class Audience and offer
the wide range of Products with low price.
 PEL has a Cost leadership Strategy in Power Division and Appliances Division.
i.e. the prices of its power division appliances are high, but they are of very high
quality. PEL has a competitive advantage of its brand name.
 PEL offer high Quality Products in Power Division and Appliance Division due to
his Raw Material because PEL imported his 70% raw material from different
countries and these raw materials are of very high quality
Learning as a Student Interne

First when I Go to PEL I Attend the Orientation Session, HR Department Team gives us
the orientation in which they us about the PEL, also tells about the Vision and Mission
Statement of Company. In Orientation Session we submit the Document and HR team
assign the Department and Supervisors.
Finance Department
As a Student of BSBA (Major in Finance) I did my internship at the finance department
of PEL. I learnt many things during my internship.
The details are as follows:
Sections of Finance:

Basically, Finance Department has Further Divided into the 4 Sections which are given
below.
o Corporate Finance
o Treasury
o Budgeting
o Accounts Receivable
All Section are mentioned above have their respective Head and separate team
which work on it and report to the Head or Manager.
Now discuss that What I learned in these Sections During the Internship.
Corporate Finance
Corporate Finance deal with the Loan Handling, Leasing and Guarantee
Handling. This Section play very important role in the overall progress of
Company. In this Section we learn how to Company get finance from Banks and
how to import raw material through the Letter of Credit (LC).
i. Loan Handling Section

When PEL have a required a financing then they will write a letter to Bank and in
which they will mention that PEL have required fund of Rs: ___ Million and also
mention in that in letter that why we have a need of this fund and their prior
Performance also mentioned in that Letter Called a REQUEST LETTER
After that Bank also response to Company and sent offer letter to company in
which bank offer the different types of their “Financing Offers” and their every
offer there are different terms and Conditions (Amount, Interest Rate, Maturity
date and Guarantee.)

PEL deals with the many Banks like NBP, MCB, The Bank of Punjab, Bank Al-
falah, Sindh Bank and many other Banks for the Purpose of Get financing and
transfer funds to other Stake Holders.
o How to PEL get the Credit Facilities from Bank for Import Material?
I. First of all PEL done the sale Agreement with Foreign company for Import
Goods.
II. After that PEL Applies for the Letter of Credit (LC) in their Home Country
Bank (Issuing Bank)
III. In this Step Home Country Bank Issue the LC to Foreign Bank
IV. Foreign Bank Given Letter of Credit to Seller Company (Exporter)
V. Shipment the Raw Material to Importer Country
VI. Exporter Presentation of Document to Foreign Bank
VII. Foreign Bank Present those Documents to PELs Home Country Banks
VIII. Then Home Country Bank Present those document to PEL and then Issue
the Payment to Seller (Export).
ii. Leasing Section

The PEL Leases Vehicles and Many Different Machinery for the of Company and
holds the Record for them. The Leasing Section Currently deal with the 16+
Banks in Pakistan for Leasing purpose. in this Section they record the whole
information of Car and Machinery. The Machinery used for the production
Purpose and Cars are used by Employees of PEL. When a Company want to
Lease a car, it write a letter to their related bank and request for the lease the
Car for Certain Time Period.
Lease Section Record Data of Vehicles:
o Serial Number
o Vehicle
o Registration Number
o Chassis Number
o Engine Number
o Delivery Status
o Price
iii. Guarantees Handling Section:
This Section Deal this the Bank Guarantees and this is the import task for this
Section. Bank Grantees play most role in the Biding of Contract because
when PEL wants to Get Contract there is required to submit the Bank
Guarantee Issue by the Bank that show that PEL have Confidence that to
Fulfil this tenders.
Treasury Section
Treasury Section Deal with the Inflow and Outflow of Money in PEL. This
Section is Bank of PEL because this section helps and support the whole
Finance department and it allocates funds. The other task is to collect
Payment from the Corporate Customer and deal with the Payables. And the
payable are mostly the loan that taken different Banks. Treasury Section is
also responsible for the allocate the salaries for the employees.
Cheque Management System

o In 1st Step Issue the Cheque from treasury Section and enter in Oracle as
Account Payable
o Cheque Present in the Bank and after that those transaction confirm by the Bank
and Clear from the System through Cheque Management System
This Section tally the Accounts at the end of Every month with the Bank Statement.
RTGS Real-Time Gross Settlement
RTGS is the Bank Services which Provide to the its Special Customers For
Heavy Transactions, which are transfer to the other bank within Same day.
Requirement of RTGS
o 16 Digit IBAN Number
o Title: PEL Company
o Purpose of those Transaction
Budgeting Section
Budgeting Section is Forecast the sale of year and the estimated the how
much cost will be occur after getting Production. Basically sale forecast by the
Marketing Department and Finance department Allocate the Funds to their
related Departments.
First of all Budget Section Compile the data from Sale/Marketing Department
about the estimate of Total Sale in whole Pakistan.
After the gathering Data from the Sale Department, Budget Section get
details from the Operations that how much raw material require to Complete
the Supply and then estimate the budget of raw material price in those days in
which Days material is Required,

Budget Section is not only work to estimate Budget but Every month they will
compare Budget with the Actual Sale and Cost of Goods.
Accounts Receivable Section

Account Receivable Section deal with the all type of Receivable Payments.
Account Receivable Section confirm the from the treasury department that
this amount with be transfer to Company Bank account and then clear those
Transaction from the Record of Accounts Receivables Section.
New Knowledge Acquired

Internship in PEL was a great and new experience for me because this is my first
internship in any Organization. During my internship period I learned a lot of knowledge,
which is related and unrelated. Related is that I learned the actual knowledge of
Finance department, their rules and regulations and how to make Decisions in taught
time and which factors affect directly and indirectly to the Profitability of Company.
Unrelated means that know the office environment, how to different sections work to
gather and co-operating with each other and learn about the team work. I have had
great office interaction which improved my teamwork capabilities.
In PEL I learn about the Practical knowledge of real world which cant be learn in
classrooms and enable me to compare theoretical ideas which learned in classrooms
with the real world work environment.

The Job in Finance department is not easy task but in PEL everyone have separate
task means one Employee is responsible for their own task not whole section. But I
found all the employees and managers are hardworking, disciplined and punctual in
their task accomplishments. Our supervisor was very humble with us
Problems Encountered
As an Internee I don’t face any major Problem in the Finance department during my
internship period. The only thing I found a bit problematic was that to take from the Staff
to teach me new things and working of Departments, because that time extremely busy
Schedule. Otherwise, The whole staff of department is very friendly and co-operate,
especially with the internees.
Other Activities
 Our Supervisor Mr Waqas Ahmed give us the Factory Tour of PEL.
 Complete Financial ratio Analysis of PEL and Discuss with Supervisor.
 Background work of Oracle Software and Use of Oracle Software.
 Use of Excel important Formula which used in Office work.
Recommendations
As an internee I face some Issue in PEL which are also face by the Employees of PEL,
I suggest the Upper Management to work on it
 First issue is the to provide complete Scanner Gate to Security because it’s very
lengthen process to check every worker one by one. Through Scanner Gate they
can easily complete the checking Process and also save the time of Worker.

 Second is the Provide Computer Scanner on Gate which Scan through the PEL
Id Card of Employee because through it company measure time that Employee
spend in his Office and also save the cost of Extra Security worker on Gate.
 3rd is to Establish a high standard Corporate Cafeteria for their Employees,
Where the employees of a PEL can get Lunch, Fries and Some Coffee & Tea
without leaving from their place of work. Each meal might be paid for by
the company

Glossary
AD = Appliance Division
PD = Power Division
RTGS = Real-time Gross Settlement
LC = Letter of Credit
AR = Account Receivable

Reference
o https://pel.com.pk/wp-content/uploads/2022/05/PAK-ELEKTRON-LIMITED-
ANNUAL-REPORT-2021.pdf
o https://www.scribd.com/document/27190051/Internship-Report-on-PEL-
Pak-Elektron-Limited-Lahore-Pakistan
o http://pakistani-tycoons.blogspot.com/2013/12/saigols.html
o http://www.kpcl.com.pk/kp/
o http://scstrade.com/stockscreening/SS_CompanySnapShot.aspx?
symbol=PAEL
o
o http://pakistani-tycoons.blogspot.com/2013/12/saigols.html
o http://www.kpcl.com.pk/kp/


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Pak Elektron Limited (PEL)

(14KM Ferozepur Road, Lahore)

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

START DATE: 2501 JulyAugust 2022 END Date: 09

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

I, OSHAQUE ALI , Roll No: SP19-BBA-049, student of BSBA (FINANCE), Session

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

Organization PakK Elektron Limited

Head Office 14km FreozepurFerozepur Road, Lahore

Legal Status A Public Limited Company

Authorized Capital Rs: 11,000,000

Paid Up Capital Rs: 8,560,000,000

Ordinary Shares 856,010,000

Subsidiary Kohinoor textile, Kohinoor Energy Limited.

Company Website www.pel.com.pk

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

Background of Pak Elektron (PEL).....................................................................................................8

Pak Elektron Limited (PEL)..........................................................................................................9

Kohinoor Power Company Limited..........................................................................................20

Kohinoor Energy Limited............................................................................................................20

SARITOW SPINNING MILLS LIMITED (TEXTILE SPINNING)..............................................20

THE FOUR SEASONS..................................................................................................................20

Red Communication Arts Limited............................................................................................20

Organizational Structure (Organizational Chart)......................................................................23

Financial Ratios Analysis...............................................................................................................26

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

Market Value Ratios.....................................................................................................................33

Learning as a Student Interne...........................................................................................................36

Accounts Receivable Section....................................................................................................40

New Knowledge Acquired..............................................................................................................41

2. Background of Pak Elektron (PEL).............................................................................6

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

Pak Elektron Limited (PEL).........................................................................................7

Kohinoor Power Company Limited.............................................................................7

Kohinoor Energy Limited.............................................................................................8

SARITOW SPINNING MILLS LIMITED (TEXTILE SPINNING).................................8

THE FOUR SEASONS...............................................................................................8

Red Communication Arts Limited...............................................................................8

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

Pak Elektron Limited is a leading manufacturer of electrical components and solutions,

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

importance of electrical and electronics manufacturing, it is essential that you choose

Background of Pak Elektron (PEL)

To excel in providing engineering goods and services through continuous improvement.

• To focus on personal development of our Human Resource to meet future challenges.

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

Pak Elektron Limited (PEL)

Appliance Division (AD)

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

Product Line of Appliance Division.:

PEL start Refrigerator

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

DEPARTMENT OF MANAGEMENT SCIENCES, COMSATS UNIVERSITY

PEL start the

Feature of Deep Freezer