Internship Report Options Restaurant by Kamran Nasir

INTERNSHIP REPORT
OPTIONS INTERNATIONAL (SMC-PVT) LTD.
Submitted to:
Prof. Dr. Rizwan Qaiser Danish
Submitted by:
Kamran Nasir (BC15-248)
Section C
Semester 7th
HAILEY COLLEGE OF COMMERCE

University of the Punjab
OPTIONS INTERNATIONAL (SMC-PVT) LTD 1
Acknowledgement
Person is not a perfect in all the contexts of his life; He has
a limited mind and mind thinking approaches. It is the guidance
from Almighty Allah That shows the man light in the darkness and
the person find his way in the light. Without this helping light,
person is nothing but a helpless creation. The teaching of the
Holy Prophet Muhammad (PBUH) were also the continuous
source of guidance for me especially his order of getting
knowledge and fulfilling once duty honestly was key motivation
force for me. With prayers of my parents and support of my
teachers it became possible to formulate this report. I pay high
regards to them. I am also thankful to all my friends and Class fellows
who helped me and provided me support to complete this hard
task. I like to thank Mr. Faisal Sagheer Syed (Accounts & Finance
Manager) and all the staff members at Options International as they
helped me remarkably for this report.
Letter of Transmittal
Dear Sir Rizwan Qaiser Danish,

It is to present you the internship report which is executed at
Options International (SMC-PVT) Limited as required by the
university as a degree requirement. This report has been prepared
in accordance with the guidelines issued by the department. I t i s
the result of my first professional experience. The
r e p o r t i s a p r a c t i c a l a p p l i c a t i o n o f whatever I studied.In
this report, I have covered the introduction of Options International
(SMC-PVT) Limited, detail of my working and learning in Options
International (SMC-PVT) Limited. I had assisted the manager
accounts and finance for assignments, but for learning assisted
incharge of each department. I have put all the efforts to
summarize my knowledge and experience in this report, to
make it comprehensive and to meet reader’s expectations.
Sincerely,
Kamran Nasir
Roll No. BC15-248
Acknowledgement 1
Letter of Transmittal 2
Executive Summary 4
Introduction 5
History 8
Vision and Mission 14
Owner Profile 15
Organization Structure 16
Objectives 18
Marketing Mix 20
Competitors 23
Training and Development/Performance Appraisal 24
Time Keeping, Achievements 27
SWOT Analysis 28
Recommendation/ Suggestions 30
Conclusion 30
Skill Acquired 31
Work Done By Me 35
Financial Ratios Analysis and Interpretations 40
Appendix 65
Letter of Authorization 65
Conclusion 43
Financial Statements 44
Bibliography 72
1. Executive Summary
Options Restaurant and Coffee Shop are eat-in, carry-out, specializing in evening and
weekend leisure dining. Lahore is recognized as one of the prime Restaurant markets in
the country.
Options Restaurant is a 150 seat fine-dining restaurant with a 120 seat lounge. Options
Coffee Shop is a 60 seat fine-dining Coffee shop with a 20 seat lounge they focus on new
Pakistani and Chinese menu with a touch of European influence. Options Restaurant
located in the booming, and rapidly expanding city Lahore.' The outlook for the future of
Long Branch is promising. The area is in need of a warm and friendly place with excellent
food. A place where you always know you will get the best of everything. Options
Restaurant is featuring a cozy dining room and an elegant lounge. Comfortable
furnishings and decor with soothing warm tones. The lounge has comfy couches and
antique love seats with a softly lit bar. It is the perfect place to stop in for a bite to eat, for
a drink or for a small business meeting. The menu inspired from different countries'
specialties and appeal to a diverse clientele. You can get Turkish, Lebanese, Chinese,
Iranian, Pakistani and Fast Food/Pizza, or you can go a little bit more International and
choose a red curry chicken with basmati rice, or an Asian grilled shrimp with spinach, tofu
and black bean sauce. It also have a special pasta dish entree every day plus the 'all
Pakistani and American meal' such as barbecue beef ribs and baked beans. Adding value
is an interesting business lunch menu with specialties every day. The menu is change
every 3-4 months but keep the favorites. Prices are competitive with other upscale
restaurants in the area. However, it is the strategy of Options Restaurant to give a
perception of higher value than its competitors, through its food, service and
entertainment. It offers special theme nights to attract new customers to Options
Restaurant. The restaurant is fine dining in a cozy atmosphere. Warm colors, fresh
flowers, soft music, candles and amazing artwork from some of the area’s most notable
new artists. This is their work for a diverse clientele. During the busy summer months you
can also have a special summer menu, featuring lighter fare, exotic drinks, as well as
non-alcoholic offerings. The service is relaxed, very friendly and correct. It hires the best
people available, training, and motivating and encourage them, and thereby retaining the
friendliest most efficient staff possible. Its management team is comprised of individuals
whose backgrounds consist of 10 years’ experience in food, restaurant and hotel,
catering, management, finance, marketing, art and motion pictures. Catering is a major
part of the business. "Leave it to Options Signature Catering" already has an established
clientele and they are growing each and every day. It feel in today's hectic work schedule
customers don't always have time to set up that birthday party or other event that we all
need and want. Now customers can leave it to pros and get the finest, most memorable
party or dinner ever. Options have years of experience in the catering business and know
what an important client wants and needs.Net profit for the year June, 2018 ended is
₨ 90,881,222.
2. Introduction
With a past measurements of food sector, we believe that Pakistani food is gaining
popularity with energy passing time. But as with the best Pakistani dishes we put to
gather popular dishes like Italian, Turkish, Chinese, Iranian, Lebanese & fast food
along with coffee & bakery items. So under single plat form comes covers all the
spices & taste of dishes called Options An-Exotic Restaurant.
Best fun Diving Restaurant in Pakistan Award
Best Restaurant award: - By food network
Best achievement award: - By Jang group
Best business award: - By Governor Punjab
Food division of Options International launched OPTIONS –An Exotic Restaurant,

Options Coffee & More, Options Bakers & Delights and Options Signature Catering
from Pakistan with the vision to expand the new concept of Fun Dining all over country
as well as in all metropolitan cities of the world. We believe that
Pakistani food is gaining popularity all over the world, therefore, with the best Pakistani
dishes we put together popular dishes from Lebanese, Iranian, Turkish, Chinese and
fast food cuisines along coffee shop and bakery. Options is one of the few Pakistani
restaurants approved by ISO 22000 – Food Safety Management System. Options also
introduced live kitchen, live bakery production and live juice bar concept in the food
industry. Live singing, Grand Concert Piano, theatre screen, countless LED Screens,
largest aquarium, X Box gaming zone, Ludo/chess tables, digital karaoke system,
news corner, corporate/family lounges, Wi-Fi, availability of laptops/IPADS, selfie
points add fun to the whole dining experience.
2.1. OPTIONS AN-EXOTIC RESTAURANT
Yee Haw – Its Options Restaurant. Leave the stress where it belongs and get ready for
the exceptional experience. It’s time to have a fun dining experience at Options. At
Options, you will enter through a space door overwhelmed with waterfalls and stars
above, great smiling faces to greet you, service call buttons at tables, Wi-Fi to remain
connected to the world, Disney characters to play with the children, a photographer to
take pictures to capture your memories, live kitchen to enjoy your food being cooked in
most hygienic conditions, trendy Juice Bar with large selection of special drinks and fresh
juices, Full range of Pakistani Cuisine along with Lebanese, Iranian, Turkish, Chinese
and fast food specialties.
You can also watch video presentation of dish of your choice by scanning QR code printed
in the menu next to the dish. While enjoying your favorite food, you can relax your mind
by looking at hundreds of exotic fish swimming inside the Largest Aquarium or you can
close your eyes and listen to grand concert piano being played with soothing tones.
you can listen to melodious live music being played by renowned singers or you can
watch sports at 13 feet theatre screen plugged in with 10 large size LCD’s – and when
you are done with your delicious food – the fun can be more sweetened by adding
heavenly tasted desserts from Options Dessert Bar. This is called – An Options
Experience – which is in reality an Exceptional Experience for a long time to remember.
1.1.1 SPECIALITIES:
1. PAKISTANI CUISINE
Pakistani Food is a combination of home grown rich traditional spices, fresh vegetables,
fragrant long grain rice, seasonal fruits and a refined blend of various regional cooking
traditions of Pakistan. Pakistani food is gaining popularity in all the corners of the world
because of its richness and unique flavors. Our famous celebrity chef and his expert team
prepare the most delicious food for the souls.
2. LEBANESE CUISINE
Lebanese Food has a wide range of menu and is in demand all over the world especially
among those who enjoy perfectly cooked meat with less spices. Options has picked the
best dishes out of most popular Lebanese menu for their guests to suit their taste buds.
3. IRANIAN CUISINE
Iranian cuisine combines savory dishes with sweet flavors like pomegranate, barberry
and cinnamon. There is ample use of fresh herbs and subtle spices like saffron. The goal
is not to knock your taste buds over with one prominent taste, but to serve up layers of
flavors to keep you guessing as to what may come next. Options Restaurant chef has
picked carefully the few specialties hoping that our guests would fall in love with his
selection.
4. TURKISH CUISINE
Food lovers are falling in love with Turkish food and the eateries offering Turkish food in
Pakistan are being filled up more and more. Options kitchen team work hard every day
to keep the taste as close to authentic as possible for the Turkish specialties being offered
in Options exotic menu with pride.
5. CHINESE CUISINE
Chinese cuisines are most popular in the country after Pakistani. Chinese eateries can
be found everywhere and it might be because of the brotherly relations with China.
Options has included most popular options of Chinese cuisine to its menu to provide
choice to valuable guests.
6. FAST FOOD / PIZZA
Options Restaurant gives you a wide selection of fast food, Burgers, Sandwiches and
Pizzas with a unique Exotic taste, Spices & Flavor’s which will kick away your hunger.
Come enjoy the vast menu of burgers & Sandwiches and enjoy the taste in perfect
Ambiance at Option
7. SERVICES INTRODUCTION
“The action of helping someone working for someone, system supplying a public need &
ready to assist someone when required”
THE OPTIONS RESTAURANT is perfectly suitable with this meaning because it helps
public by providing its facilities, by gibing its facilities, by satisfying public needs and also
ready to assist them whenever required.
SERVICES
A service is the most important part and major key for the success of any unit. Without a
service, marketing cannot be imagined. Service is one tool in the hands of the marketing
through which it gives life to all marketing program. So, the main responsibility of the
marketing would be to know its service well and to take proper service decision.
HOTEL SERVICE
 RESAURANT FACILITIES – Provide Nourish food, fast food, and continental food.
 HALL – Banquet/conference to accommodate 150 persons.
 REGENT ROOM -Party Room for 120 persons.
 OPEN SPACE – If customers demand open arena for the party, Reception,
TERRACE is provided them with all arrangement.
BIRTHDAY PARTY:
If some one wants celebrate Birthday in THE OPTIONS RESTAURANT, they are
providing hall for party and arrange the event. They provided music to the party, and also
arrange for cold-drink and food to the members of party so; person can get both
entertainment and food.
MARRIGE PARTY:
Someone wants to arrange a marriage party. They handle the event; they provide food &
other services and also provide music and other facilities.
DANCE PARTY:
If the festival of “Christmas” and “new year” they provide all the types of entertainment to
the all customers. Service like music, dance floor other many types of services to
celebrate festival.
OPTIONS RESTAURANT provides various services to their customers. They try to

provide all the types of services to the customer so customers don’t feel trouble himself.
They think that BEST QUALITY SERVICES provided to customer is their responsibilities.
1.2 OPTIONS COFFEE SHOP
Options Coffee & More which we call “The Social Lounge” where friends gather to enjoy
conversation, retreat from the chaos of everyday life, take a moment to relax and enjoy
our world class freshly brewed Italian coffee. To complement our unique hot and cold
beverages, we offer a wide selection of snack ideas including pastries, cold & hot
sandwiches, innovative burgers, exclusive pizzas, scrumptious steaks, special sundaes
and homemade options ice-cream. Options Coffee & More is an ideal venue for dining,
casual meetings, business talks and have fun. To keep you entertained at Options, we
have largest LED screen, chess / Ludo tables, news corner, 3D gaming zone, separate
family and party lounges where you just need to grab a cup of coffee or snack and enjoy
all at Options- Coffee & more in a perfect ambiance. We take coffee serious while having
fun and never stop experimenting.
1.2.1. UNIQUE FEATURES:

2. FRESHLY BREWED ITALIAN COFFEE
For the first time ever in Pakistan, Options – Coffee & more is serving you freshly
brewed Italian Coffee. Once you enter Options – Coffee & more, aroma of our coffee
beans brewing will freshen you up. You can choose from a number of light, medium
and strong coffee’s, hot or cold, or enjoy best frappes. You will not be able to stop
yourself from saying that this the better coffee than the coffee which I had in London,
Dubai or New York.
3. OPTIONS HOMEMADE ICE CREAM
Options, being the trend setter once again introduced popular flavors of Options
homemade ice cream. . There are a number of toppings and shakes to choose from
which you can make your ice cream more creative and delicious.
4. SPECIAL COLD BEVERAGES
Options- Coffee & More gives their customers a wide choice of Options cold coffees,
frappes, special drinks, Smoothies, shakes and seasonal fresh juices which will clench
your thirst and refresh your mind. Options- Coffee & More gives you a variety of
different flavors and choices in their drinks selection menu.
5. SNACK IDEAS
Options – Coffee & More gives you a wide selection of creative snack/food ideas
including Burgers, cold/hot Sandwiches, pizzas, soups, steaks with Exotic taste,
Spices, & Flavor’s which will kick away you hunger whether its day or late night.
6. LUDO / CHESS TABLEs
Options coffee and more is also a place for the families to come and connect with
each other and relish the moments together by enjoying traditional Ludo and chess
games provided on tables. This is the best amalgam to enjoy coffee/snacks with loved
ones.
7. 3D GAMING ZONE
Options knowing trend of the kids going digital has created state of the art 3D digital
gaming room which has now become the talk of town especially amongst children and
youngsters. Kids love this digital adventure and keep themselves busy while their
elders enjoy their meals or conversations.
8. NEWS CORNER
Information is motivation and therefore, we have created a special news/book corner

offering wide range of newspapers, informative and motivational books, novels and
magazines to satisfy the needs of our special guests having interest in current affairs
or those who love to read while enjoying the drink or food of their choice.
1.3. OPTIONS BAKERS & DELIGHTS
Options Bakers & delight is the only place where cakes and pastries of your choice are
baked live in front of you. Options Bakers & Delights offer a versatile selection of Cakes.
Designer cakes, Elegant Royal Cakes, Royal Signature Cakes, Picture Cakes, Dry
Cakes, Mousse Cakes, wedding cakes, corporate cakes, cup cakes, cookies, an array of
different Pastries and tarts and other Exotic Bakery items. From Innovative 3D Cup Cakes
to the perfect Wedding Cakes, Options Bakers itself is a dream come true for anyone with
a sweet tooth or simply a thing for ART. The art of giving never stops here. Options Bakers
& Delights is also a place to buy branded chocolates and customized gift baskets for all
occasions. Our designer cakes also commemorate the joys, accomplishments,
momentous occasions and wonders of life. Our clients from around the globe become
part of our family, calling us time after time to create beautiful and delicious cakes for all
of their special occasions and we, at times, deliver them to their loved ones on their behalf.
1.3.1 BAKERY CATELOG SPECIALITIES:

2. ROYAL SIGNATURE CAKES
Royal Signature Cakes are most popular cakes of Options Bakers. They come in
chocolate, cream, flavor of choice and in dry form.
3. DESIGNER CAKES
Options Bakers is a pioneer in introducing picture cakes in Pakistan. We use Italian

eatable paper and eatable ink to print super perfect picture on the cake. Picture
cakes are becoming more and popular and its becoming hard for Options Bakers
to keep it up with the demand
4. CORPORATE CAKES
Corporate Cakes are new addition in the ever-growing selection of Options Bakers
& Delights. Corporations now a day expressing thank you to their clients and
appreciating best performance employees with company with the cakes carrying
logo and desired messages. This is the best way to win the heart of valuable
customers and employees.
5. WEDDING CAKES
Wedding cakes are now a part of tradition. It seems wedding celebrations are not
complete till the wedding cake is cut by groom and bride. Options Bakers feel pride
to be the only confectionery in Pakistan who was able to make 500 pounds cake
for a high profile wedding in Lahore.
6. CUP CAKES
Cup Cakes are known as fun in the cup. Best Chefs at Options Bakers are capable
of making flavored cupcakes, name initial cupcakes, designer cupcakes and 3 D
cupcakes. Highly Recommended Fun Sweet.
7. PASTRIES / COOKIES
Options Bakers and Delights offers freshly baked pastries and cookies in most
liked flavors and always ready to bake anything and everything on demand.
8. BRANDED CHOCOLATES
Chocolate Love is the strongest love which exist today. Options Bakers and
Delights make its own premium chocolate products which can also be customized
at times. Similarly, Options Bakers offers chocolates of all popular brands.
9. LIVE BAKING!
Options introduced the concept of Live Baking visible through a glass for the
customers so that they can enjoy viewing their Cakes being baked in front of them.
It’s amusing as well as satisfactory form customers.
3. HISTORY & LOCATIONS

History:
Options started in Dec.2013, and booms out with the specialty of live kitchen, live bakery
& live juice bar. During many year of journey of success & growth Options has secured
many awards including.
Multiple locations: - Faisalabad & Lahore
Branches
1. Falcon Complex, Lahore

2. Garden Height Plaza, Barkat Market
3. DHA Y Block
4. Do Burj Shopping Mall, Near Al Fateh Store, Faisalabad
4. VISSION
“As the leader in the food service industry, we will strive to provide the
highest level of consistency in the quality and delivery of our products,
services and knowledge”
5. MISSION
“We will maintain our established reputation within our province and
community for a high standard of:
 Food quality, creativity and presentation

 Consistent superior service and price value
 Sanitation, appearance and overall professional attitude”
D r. Ka i s e r R a f i q u e
(CEO)
The Famous Managing director of Royal Emirates Group of

companies is an emerging leading group with diverse business
interests in the local and International markets. Formed and chaired
by His Highness Sheikh Butti Bin Suhail Al Maktoum.
Dr Kaiser Rafique Gain the following awards:
 Founder and President of Asian American Trade Association

 Editor-in-Chief – Global Trade Time
 Director – Invest in Pakistan Forum
 Founder – Emirates Business Network
 Co-Founder – Pakistan Strategy Council (Think Tank and a
Forum for Knowledge Development
 Member – National Strategy Forum (American Think Tank)
 Highly anticipated Speaker at International Business Forums
6. ORGANIZATION STRUCTURE
Organization structure is a basic frame work of business manage
ment. It is the pattern in which various parts of the company are interconnected.
Organization structure is the presentation of the division of system. It helps to keep

conduct, control and co-ordination to the activities of company.
The organization structure is given below of the Options restaurant:
Partners
Head of Department
Supervisors
Workers
LOCATION
Location of the service sector requires all that facilities which are needed to run them.
When the new service sector is to be established, one major decision has to be taken.
That is the location of that. There are many factors which affecting the location of the
service sector i.e. availability of Raw material, Financial factor, Govt. policy, availability
of water, electricity etc.
Generally, the location of the sector should be very easiest in which the sector can get
necessary things very easily. The Options Restaurant is situated at 8 Aibok Block new
Garden Town Lahore. This sector situated hears for some reasons are as follows.
 New developing area

 Just 1 Km. from Punjab University
 Just 2 Km. from Metro bus station
SIZE OF ORGANIZATION
According to Pakistani company act, there three main types of industry:
 SMALL SCALE
 MEDIUM SCALE
 LARGE SCALE
THE OPTIONS RESTAURANT has under the category of “SMALLSCALE”.

FORM OF ORGANIZATION
The main business form of organization is follows:
 SOLE PROPRIETOR CONCERN

 PARTNERSHIP FIRM
 JOINT STOCK COMPANY
 THE OPTIONS RESTAURANT has under the category of “PARTNERSHIP
FIRM”
OBJECTIVES OF BUSINESS
Generally, the main object of a business to get more and more profit. All the business
activities are running with the main object of profit but “profit is not only the object of any
business.” There are many objects such as to contribution in the development of the
country, Social responsibility etc.
Options Restaurant’s main objectives are given

below:
 To earn Sufficient Profit.
 To provide social facilities.
 Elimination of customers problems.
 Contribution in the development of the country.
7. QUALITY CONTROL
The quality control department inspects the basic raw material, which is produced or
extract from the earth, for quality assurance test. This process is necessary in order to
get sufficient and effective management for produce the food.
The Options Restaurant is maintaining quality by experience and expert person. They
never compromise to its quality and services. They always try to its level best.
• Special dishes make by expert man
• Fresh Vegetables, Fruits and Grain
• Maintain quality by experience cookers.
8. STORAGE
THE Options Restaurant is having storage department in which they are store different
raw material some of them have long period like 15 day to changes, some of them have
very short period i.e. daily.
The store keeper examine store after every 15 days this stoke is oil, sugar, tea, coffee.
And other stock examines store daily bases i.e. fresh vegetable, milk.
After examine by storekeeper, he make a list of things that will be needed and give to
purchase manager, purchase manager take form cashier and purchase thing listed in
list. The store keeper has to visit storage department and check the stock otherwise it is
create difficulty for cooks. And mismanagement is place. But the Options Restaurant
has proper management of food & beverage department.
9. MARKETING MIX
“Marketing mix is the set of marketing tools that the firm uses to pursue its marketing
objective in the target market”
- Philip Kotler
The basis of marketing operation is the co-ordination of four key variables namely,
 Product
 Promotion
 Price
 Place
8.1. Product Mix
Product mix is the list of all product offered for sale by a company. It is defined as “The
composite of product offered for sale by a firm or a business unit.”
The product mix of a company has two characteristics: -
(1) Depth
(2) Width
Depth depends on the number of products items with in each product line.
Width depends on the number of products group of products line with in the company.
The Options Restaurant has product width in food dishes. I.e. Pakistani, Iranian,
Turkish, Chinese, & continental items.
The Options Restaurant has product depth in Hall i.e. Dance and Party Hall, Marriage
8.2. Promotion Mix
The marketing mix activates or product planning and distribution are performed mainly
with in business or between a business and the member of its distribution channels.
However, though its promotional activities, a firm communicates directly with potential
customers and as well we see, it is not a simple process.
Basically, promotion is a attempt to influence, and more specifically promotion is an

element in an organization marketing mix that serves to inform, persuade and remind
the market of the product and the organization selling it, in hopes of influencing the
recipient ‘s feeling, belief or behavior.
“Promotion consists of those activities that are designed to bring a company goods and
services to the favorable attention of customer”
There are four forms of promotion are as follows.
• Advertising
• Sales Promotion
• Publicity and Public Relation
The Options Restaurant makes a promotion activity. So they can increase the volume of
sales and earning maximum profit.
8.3. Pricing Policy
The prices of the product are depend upon the expenses which is made for making
product. The expenses such as the cost of raw material, cost of over heads, sector
overheads, administrative overheads, margin of profit etc.
Pricing decision has strategic importance in any enterprise. It means decision of

determining price of a product. Price can be defined as the exchange value of the goods
or services in the terms of money.
The price of products should be determined in such a matter so as to offer a reasonable

amount of profit to the manufacturer, a reasonable remuneration to middle man and the
maximum satisfaction to the consumers. Price is an important element in the marketing
mix. The policy is only factor that generate revenue other factor are expense. Price is
only revenue generate element. So profits depend upon the price.
While deciding the price of product, following factors are consider as cost:
• Cost of Vegetables, Fruits and other cooking material

• Wages paid
• Cooking Expanses
• Electricity expenses
• Promotion expenses
• Estimating cost
• Other cost
9. ADVERTISEMENT
In this modern time, advertising is very important for increasing the sales of the product
of the company or industry. Advertising is the best tool for increasing sales. Big
company spent lots of Rupees for good Advertising.
Advertisement can define as “Mass, paid communication presentation and promotion of

goods, service or ideas by an identified sponsor, it is paid communication, because the
advertising has to pay for the space or time in which his advertising.”
It is a modern business word and in modern business world no business can survive
without advertisement. So advertisement is must.
OPTIONS RESTAURANT The main method of advertising is Newspaper, Pamphlets,

Metal Board, etc. In all the advertisements the Brand “OPTIONS RESTAURANT’’
highlighted. Options Restaurant give high advertisement compare to other restaurant.
10. COMPETITORS
Today, competition increases very fast in any business. Competition is very important
for the development of the economy and country.
The restaurant has to find new and new food product to continue in the market. There
are lots of competitors in the market for restaurant.
Therefore, Options Restaurant tries their level best to face the all competitors.
They are as follow:
11. MARKETING RESEARCEH

Marketing research is a systemizing gathering recording and analyzing the date about
the marketing problem to facilitate decision making.
Thus, marketing research concentrates on the study of product planning, advertising

and sales promotion, distribution, structure, marketing strategies, marketing
competition, buyer’s behavior and attitude in the marketing place.
The Options Restaurant is high quality Restaurant. The Restaurant offers consistently
high standard of food facility. Therefore The Options Restaurant is famous in the Lahore
especially for Desi Food, Coffee Shop and Bakery.
12. TRAINING, DEVELOPMENT & PROMOTION

“Tanning and development refer to importing of specific skills, abilities and knowledge
and performance of employee.”
In personnel management an opportunity of advancement is given to the new or old

employees. There are many workers work in the sector. Some of them are skilled and
some of them are unskilled. Thence, sector has to give them special training, practical
knowledge etc. Training is necessary to know about the working conditions and
techniques.
An every institutions or organization trains their worker after selection of the person.
Training is a technique by which a management also gets information that, this
employee is right for the job or not. THE OPTIONS RESTAURANT is giving training to
new employees by senior. They are planning for giving training to employee in other
branch.
Training includes “ASK” means Attitudes, skills and Knowledge. Promotion involves
movement of a person to a vertical position carrying higher status more pay, increased
responsibility, increased benefit, better prestige, higher authority, better working
condition facilities and higher rank.
13. PERFORMANCE APPRAISAL SYSTEM

ACCORDING TO EDWARD FLIPPO “Performance appraisal is a systematic, periodic,

and so far as humanly possible, and impartial rating of employee’s excellence in matters
pertaining to present job and to potentialities for a better job”.
Ones the employees have been selected trained and motivated; he is then appraised
for his performance. Performance appraisal is the step where the management finds out
how effective it has been at hiring and placing employee. A performance appraisal
consists of evaluating an employee’s performance of a job in terms of a job in terms of
its recruitment.
“THE OPTIONS RESTAURANT considers its employees as its most valuable and
therefore it believes in perfect and accurate performance appraisal system. They
believe that employees’ efficiency, productivity and great performance is a ladder to
success. THE OPTIONS RESTAURANT has an efficient performance appraisal system
for evaluating their employees’ performance.
The performance appraisal evaluates the performance of an employee by quantitative

factors such as quantity and rejected output standard of workers.
14. PERSONAL RECORD

In personal record, compete up to date information is maintained about employees.
Every unit have record book for employees in which record information about employee,
leave, promotion, punished men etc.
THE OPTIONS RESTAURANT has record book of employees. These record books are
as follow.
 Salary-wages register
 Casual leave register
 Attendance register
 Bonus register
15. WAGES & SALARY

The wage and salary administration is concern with the financial aspects of needs,
motivation and rewards. Wage is the remuneration paid for the service of labor in
production, periodically to an employee or worker.
Salary refers to the monthly or weekly rates paid to the clerical, administrative and
professional employees.
Wages and salary is one of the important functions for organization as well as staff
working in it. It is motive the person to effective, so it is most important work.
In “THE OPTIONS RESTAURANT” wages and salary is to be paid on monthly basis.

They pay salary to their employee on 7th in every month.
16. INFRASTRUCTURE FACILITIES

Workers and Employees are very important for any big organization. The business is
continue in the market because of the working of workers and employees. Therefore,
companies give various facilities to the workers such as Medical, Quarts, etc.
OPTIONS RESTAURANT provides various Infrastructure facilities to the workers such

as holidays, medical services etc. Also, they gave Bonus to the workers every year.
One person told truth that if you mind your man, the man will mind all other things.
OPTIONS RESTAURANT gives the following kinds of facilities.
 Clothes
 Living facility
 Food facility
 Medical facility
 Overtime
 Festival gift
17. TIME KEEPING SYSTEM

Time keeping system for a one person or a firm should develop an effective time
keeping system. Each unit must have its own time keeping system. Since time must for
every company to measure the regularity of its employee. In time keeping system the
arrival and living of employees are recorded.
THE OPTIONS RESTAURANT has a two shift of duties. They can enjoy the festival
holidays.
First Shift: - 11:00A.M. TO 8:00 P.M.
Second shift: - 5:00 P.M. TO 1:00 A.M
18. ACHIEVEMENT
The people of Punjab are famous for celebrating festivals and eating outside. One
survey states, Lahorians spend more money on eating outside the home than any other
city of Punjab. In Lahore, Most of the families go to the restaurant or hotel once a week.
Options Restaurant is situated on Main Boulevard, Garden Town which is near to

Punjab University. So it is very easy to attract people. For this reason Options
Restaurant has 10% annual increase in sales turnover.
Options Restaurant is famous for Desi food especially for Mutton Karahi, Chicken
Stakes etc.
19. SWOT Analysis

‘’If you do not know where you are going, you can take any road.” This famous quote
epitomizes the attitude of people and their lack of planning. It is primarily because of
lack of strategic direction. As a result it is hard to look at the actions and determine
where you are and where you want to go. This is where SWOT analysis plays an
important role. SWOT is an acronym for Strength, Weaknesses, Opportunities and
Threats.
SWOT analysis is universally accepted as an effective method of identifying your

strengths and weaknesses, and examining the opportunities and threats you face. It is a
process in which you can gather and assess, in an orderly manner, information that will
become the basis of your development plans.
SWOT analysis includes:-
 STRENGTH
 WEAKNESS
 OPPORTUNITY
 THREATS
19.1. STRENGTH
It is one thing to discern attractive opportunities and another to have the competencies
to succeed in these opportunities. Each business needs to evaluate its internal strength
and weaknesses periodically.
 Famous for Pakistani Dishes especially Options Special Mutton Karahi.

 Good public relation
 The location of OPTIONS RESTAURANT is a developing area.
 Internal personal relationship is very nice between staff and owner.
19.2. WEAKNESS
The business does not have to correct all the its weaknesses or should it gloat about all
its strengths.
 Scarcity of Water
 Inconvenient Parking space
 Certain Dishes are prepared occasionally
 Less advertisement
19.3. OPPORTUNITY
It is an area of buyer’s need in which sector can perform profitability. The sector’s
success probability depends on whether its business strengths not only match the key
success requirements for operating in the target market but also exceed those of its
competitors.
Options Restaurant has good opportunity to be converted in HOTEL because it is

situated right in the heart of the city.
19.4. THREATS
It is challenge posed by an unfavorable trend or development that would lead in the

absence of defensive marketing action to deterioration in sales or profit.
1. Monal Restaurant
2. Pind Restaurant
3. Laal Kila
4. Gloria Jeans
5. Burger King
6. Dera Restaurant
7. Yasir Broast
SUGGESTIONS
After visiting the sector, I think that Restaurant is well and efficient there is nothing as
such which I can suggest to the sector. But, I also want to tell something to the
Restaurant that I think is necessary to attract more and more customers.
 The restaurant is strongly recommended to introduce dishes that are not still
served.
 The major problem faced by customers is parking so Restaurant must make
some arrangement for parking.
 The Restaurant should promote cooking competitions and also accept the
cooking recipe from the people outside.
So, this is one the views from my point of view, which I hope may be taken positively
and will not be misunderstood.
CONCLUSION
I think that I had got a golden opportunity to visit. OPTIONS RESTAURANT. I got a
whole information regarding personnel, financial and marketing. During my study, I
marked that the Restaurant is best in management, in working in providing facilities to
the workers and provide food facility to the people.
I have come to the conclusion that this sector has an efficient in financial and marketing
process. It possesses proper finance. Hence, this sector has a many scope for
expansion and development. The food of this sector is very good in taste. The Name is
‘Options Restaurant’, Customers would like to visit often to this Restaurant. The staff is
interested to improve the food product as per changing and taste of the customers.
Skilled Acquired
 Time management
 Team work
 Communication Skills
 Knowledge of Professional Skills
 Pressure handling
 Computer Skills
 Store Management
 Expense Management
 Inventory Management
 Finance management
20. FINANCIAL PLANING

The basic purpose of financial planning are to make sure that adequate funds are raised
at the minimum cost and that they are used wisely. It should be seen that finance is
neither excess nor inadequate.
In financial planning, they do not think investment in other place but expand their
business. Planning is very necessary for the smooth
Running of the business. Planning means deciding in advance what is to be done.
The Options Restaurant will invest their finance for their new project establish new
restaurant.
21. FINANCIAL PROCESS
Purchase
Work in
Cash
Progress
Finished
Sales
Product
Every business unit’s financial is in this way. Options Restaurant invests his money into
purchase basic things to prepare food. After completion of the foods, it is to be served to
the customers. Thus, working money rotated into cash and profit is earned.
22. FINANCIAL SOURCES

Sources of finance mean that from where to collect funds and from where money comes
for industries and also at some time in which way it comes at the time of requirements.
Generally there are two source of finance i.e.
(1) Internal Source
(2) External Sources
THE OPTIONS RESTAURANT has both internal sources and external sources of
finance.
23. MANAGEMENT OF WORKING CAPITAL

Working capital refers to the funds locked up in materials, working progress, finished
goods, receivable and cash, etc. since this asset are known as current assets, in very
simple terms, “working capital may be defined as capital invested in current assets”
According to Hoagland, “working capital is decretive of that capital which is the fixed.
But the more common use of the working capital is to consider it as the different
between the book value of the current assets and current liability”.
Working capital plays as an important role in any organization. The management of

working capital is done in such a way so that the firm does not faces financial crises
because of the secrecy of financial will create disturbance in the working of the unit.
In THE OPTIONS RESTAURANT working capital is Rs. 140,881,221 It is a major

concern of the financial manager such as the accomplishment of the value of
maximization of goal depends essential on prudent working decision.
24. MANGEMENT OF FIXED ASSETS

There are different types of fixed assets in any company. Different types of fixed assets
such as Plant & Machinery, Electric Fittings, Furniture and Fixtures, Building, Vehicles
etc.
There must be proper and appropriate provision for depreciation of on fixed assets. The
financial manager is responsible for maintaining proper management of fixed assets.
Financial manager has to take proper decision for the investment in fixed assets.
The total fixed assets of “THE OPTIONS RESTAURANT” is Rs. 14,899,783 /- only.
25. ACCOUNT
To know how much money earn during the year, how much sales and expanses occur
during the year, what steps to be taken to remedy the financial problems, it is necessary
to record all financial transactions systematically and properly. Every organization keeps
records and evaluates the financial position of the unit. OPTIONS RESTAURANT keeps
records and prepare financial statement at the end of financial year.
For preparing account, they follow the double entry mercantile system. This is the
modern method of preparing account. The account is prepared in computer. Mr.
Muhammad Akram is the auditor.
The OPTIONS RESTAURANT maintains its account by double entry system and
accounting is computerized. This is managed by the auditor.
26. Work Done By Me

I was obliged to work in the accounts department of Options International (SMC-PVT)
Ltd. Where I was able to learn about the practical work of the accounts and enhance my
corporate skills through performing routine work acclivities in different sections of the
accounts department.
Following are the different sections in accounts department:
1- Employee cost management section.
2- Fixed asset section.
4- Accounts payable section.
6- Inventory control section.
7- Insurance
8- Costing
Sections in which I have been working are given below with brief description.
“Inventory Section”
I worked in inventory section where I came to know that how to record inventory using
the system.
In this section all the raw material purchased for the purpose of production is recorded
and entries are posted in the system.
Procedure
The documents involved in the purchase process and their description is given below.
GRN (Goods Receipt Note):

When purchased material arrives in the factory, a gate pass is made at the gate and
GRN is prepared in the store against that gate pass. GRN includes the following
elements:
 Voucher Number
 Date
 Document Type
 Invoice Number
 Invoice date
 Supplier ID:
 GRN Number
 GRN Date
 P.O.N (Purchase order #)
 Quantity
 Amount
2-PV (PURCHASE VOUCHER)
In the account Department at the end of recording (entries) Purchase voucher is

prepared. It includes the following items:
 Voucher Number
 Date
 Document Type
 Invoice Number
 Invoice date
 Supplier ID:
 Expense ID
 Expense Title
 C.P.N (Capital proposal #)
 Amount
I moved to accounts payable (AP) section which was helpful for me in learning the
recording liabilities and taxes payable by the company practically using system.
“Accounts payable section”
When purchases are made, data is transferred to Accounts Payable section where
payments are made through cheques. Tax is also deducted at the time of payment. It
may be withholding tax or sales tax. Later it is submitted to FBR.
EXPENSES DETAIL
Expenses incurred by PDL are categorized as follows:
1-ADMIN EXPENSES:
 Salaries and wages

 Travelling and conveyance
 Rent, rate and taxes
 Legal and professional
 Electricity, gas and water
 Auditor’s remuneration
 Vehicles running and maintenance
 Printing, stationary and periodicals
2-SELLING EXPENSES:
 Advertisement Expense
 Insurance
 Freight and forwarding
 Warranty period services
 Contract and tendering
 Postage and telegram
3-MANUFACTURING EXPENSES:
 Raw material and components consumed

 Work in process
 Direct wages
 Factory overheads
4-OTHER EXPENSES:
 Loss on financial instrument

 Loss on sale and lease back activities
 Worker welfare funds
Helped me in learning how to record and dispose of assets and also calculating
depreciation on the company’s assets
“Assets section”
In this section Assets are calculated, recorded and disposed of with great care and
precision.
Method of recording fixed assets
Operating fixed assets are measured at cost less accumulated depreciation and
accumulated impairment losses with the exception of freehold land, leasehold land,
buildings and plants and machinery.
Freehold land, lease hold land, buildings and plants and machinery are measured at
revalued amounts less accumulated depreciation and accumulated impairment losses, if
any. Leasehold land is measured at historical cost.
Procedure
When any proposal is approved by respective authorities for the purchase of any asset,
that order is passed to buying department. Buying dept. issues a Purchase order (PO)
to the supplier which contains all the specifications of the goods required. When the
order arrives on gate GRN is prepared and a specific GRN number is assigned to the
order. This GRN is received by Asset section and the respective assets are recorded at
the market price or cost as per the company policy. An invoice is prepared against
these assets and the goods are checked against the GRN. When GRN matches with
the goods then data is entered into the system. If payments are to be made against the
assets, data is passed to Accounts Payables section where payments are made
through cheques.
I was able to work in ECM (Employee Cost Management) section which deals with the
recording or billing the employee’s expenses and keep this record up to date as per
company’s requirements.
“ECM (Employee Cost Management) section”
In this section, Bills are received by employees, in the department by ECM’s officers
and then vouchers are prepared on the system accordingly.
Types of vouchers:
 Cash payment voucher

 Cash receipt voucher
 Bank payment voucher
 Bank receipt voucher
 Journal voucher
Cash payment vouchers: vouchers that are prepared to pay/reimburse bills to

employees for entertainment or lunch or travelling purpose, spent for business
purposes.
Cash receipt vouchers: vouchers that are prepared to adjust any advance given to the
employee. If any advance is given cash receipt vouchers are prepared.
Bank payment vouchers: If amount exceeds by Rs.10, 000 and no advance is given
then bank payment vouchers are prepared. Payment will be made by bank/cheque.
Bank receipt voucher: this voucher is prepared to adjust any advance given to
employee that is to be adjusted using bank vouchers.
Journal voucher: it is prepared when advance is given and the bill is from out of city.
The amount is reimbursed in salary.
Procedure
The complete flow of vouchers is as follows:
Employees prepare bills and pass it to admin department. Admin department checks
calculations of the bills and their accuracy and send them to Accounts department
where accountants check it as per company policy and prepare their respective
vouchers. The bills with attached vouchers are transferred for audit. Internal Auditors
check the bills and sign them. These bills are again sent to Accounts department and
then to cashier where they are paid. After payment, bills are approved and recorded in
the Accounts department as evidence of payment.
FINANCIAL RATIOS ANALYSIS

OPTIONS INTERNATIONAL (SMC-PVT) LTD
FOR THE YEAR ENDED JUNE 2018
 Liquidity Ratios:
Liquidity ratios are a class of financial metrics used to determine a debtor's ability to
pay off current debt obligations without raising external capital. Liquidity ratios
measure a company's ability to pay debt obligations and its margin of safety through
the calculation of metrics including the current ratio, quick ratio and operating cash
flow ratio.
The types of liquidity ratios are:
a) Acid-Test Ratio. The term “Acid-test ratio” is also known as quick ratio. ...
b) Cash Ratio.
c) Current Ratio
1) Current Ratio
The current ratio is a liquidity ratio that measures whether or not a firm has enough
resources to meet its short-term obligations. It compares a firm's current assets to its
current liabilities, and is expressed as follows: The current ratio is an indication of a
firm's liquidity.
Formula of this calculation is shown below:
The calculation can be illustrated as follows:
As on June 30,2018 2018 2017
Total Current Assets PKR 150,294,015 PKR 68,829,026
Total Current Liability PKR 150,296,033 PKR 68,831,043
Current Ratio 6.18 3.31

Current Ratio Interpretation:
The current ratio is the classic measure of liquidity. It indicates whether the business
can pay debts due within one year out of the current assets. The current ratio reveals
how much “cover” the business has for every Rs.1 that is owed by the firm. For
example, a ratio of 1.5:1 would mean that a business has Rs.1.50 of current assets for
every Rs.1 of current liabilities.
At 30 June 2018 current assets were 6.18 times the value of current liabilities. That ratio
was more than the 3.31 times at the end of 2017, suggesting a slight improvement in
the current ratio.
A current ratio of around 6.18 is pretty encouraging for a business. It suggests that the
business has enough cash to be able to pay its dues.
But not too much finance tied up in current assets which could be reinvested or
distributed to shareholders.
A low current ratio (say less than 1.0-1.5 might suggest that the business is not well
placed to pay its debts. It might be required to raise extra finance or extend the time it
takes to pay creditors.
Current Ratio Bar Chart

3.31
2017 ₨20,787,443
₨68,829,026
6.18
2018 ₨24,312,577
₨150,294,015
₨- ₨50,000,000 ₨100,000,000 ₨150,000,000 ₨200,000,000

2018 2017
Total Current Liability ₨24,312,577 ₨20,787,443
Total Current Assets ₨150,294,015 ₨68,829,026
Current Ratio Total Current Liability Total Current Assets

2) Quick Ratio (Acid Test)
In finance, the quick ratio, also known as the acid-test ratio is a type of liquidity
ratio which measures the ability of a company to use its near cash or quick assets to
extinguish or retire its current liabilities immediately.
As on June 30,2018 2018 2017
Cash PKR 78,834,145 PKR 4,504,381
Accounts Receivable PKR 16,801,794 PKR 15,274,358
Quick Ratio (Acid Test) 3.93 0.95
Quick Ratio (Acid Test) Interpretation:
A quick ratio that is greater than 1 means that the company has enough quick assets to
pay for its current liabilities. Quick assets (cash and cash equivalents, marketable
securities, and short-term receivables) are current assets that can be converted very
easily into cash. Hence, companies with good quick ratios are favored by creditors.
In the example above, the quick ratio of Rs.3.93 shows that Company has enough
current assets to cover its current liabilities. For every Rs.1 of current liability, the
company has Rs.3.93 of quick assets to pay for it.
The ideal ratio depends greatly upon the industry that the company is in. A company
operating in an industry with a short operating cycle generally does not need a high
quick ratio. Financial ratios should be compared with industry standards to determine
whether such ratios are normal or deviate materially from what is expected.
When a quick ratio analysis is performed, the industry average comparison is important.
It helps to determine whether or not a business’s liquidity is better than average in its
particular industry.
Quick Ratio Bar Chart
0.95
Year 2017 ₨20,787,443
15,274,358
₨4,504,381
3.93
Year 2018 ₨24,312,577
16,801,794
₨78,834,145
₨- ₨20,000,000 ₨40,000,000 ₨60,000,000 ₨80,000,000 ₨100,000,000
Quick Ratio (Acid Test) Total Current Liability Accounts Receivable (less Bad Debts) Cash
3) Debt/liabilities to Equity/Capital Ratio
The debt-to-capital ratio is calculated by taking the company's interest-bearing debt,

both short- and long-term liabilities and dividing it by the total capital. Total capital is all
interest-bearing debt plus shareholders' equity, which may include items such as
common stock, preferred stock and minority interest.
As on June 30,2018 2018 2017
Capital / Owner's
PKR 140,881,221 PKR 65,104,494
Equity
Debt to Equity/Capital 0.17 0.32
Debt-to-capital ratio Interpretation:
Debt to capital is an important measure to identify how much a company is dependent

on debt to finance its day-to-day activities and to estimate the risk level to a company’s
shareholders. It also measures the creditworthiness of a firm to meet its liabilities in the
form of interest expenses and other payments.
Typically the higher the ratio, the greater the risk to lenders and shareholders, but this is
not always the case. As with any financial metric, this can’t be analyzed in a vacuum. A
high ratio does not always mean a bad thing. Look at utility companies for instance.
They often carry high levels of debt because their operations are capital intensive. This
translates into a higher debt-to-capital ratio, but it doesn’t mean they will be insolvent
soon. Utility companies have an extremely steady base of customers and as such their
revenues are consistent. This means they are able to meet their obligations without
worrying about downturns in revenues.
Contrast this with new, expanding companies. These companies might not have
established customer bases, but they still need to finance their day to day operations.
They may have steady sales at the moment, but this is not a guarantee like with the
utility companies. Eventually, the new company sales could level off or simply decrease
leaving fewer funds to service its debt. A high debt to capital ratio for this company
would indicate risk.
If the debt-to-capital ratio is greater than 1, the company has more debt than capital.
This company is extremely risky. If any more liabilities are acquired without an increase
in earning, the company might go bankrupt.
In this case, the ratio is less than 1, the debt levels are manageable and the firm is
considered less risky to invest or loan to given other factors are taken into consideration
Debt To Equity Ratio Bar Chart

0.32
Year 2017 65,104,494
₨20,787,443
0.17
Year 2018 140,881,221
₨24,312,577
₨- ₨50,000,000 ₨100,000,000 ₨150,000,000

Year 2018 Year 2017
Debt/liabilities to Equity/Capital 0.17 0.32
Capital / Owner's Equity 140,881,221 65,104,494
Total Current Liability ₨24,312,577 ₨20,787,443
Debt/liabilities to Equity/Capital Capital / Owner's Equity Total Current Liability

 Asset Management Ratios/ Efficiency Ratios:
Efficiency ratios measure a company's ability to use its assets and manage its
liabilities effectively. Although there are several efficiency ratios, they are all similar
in that they measure the time it takes to generate cash or income from a client or
liquidating inventory.
Efficiency ratios include the inventory turnover ratio, asset turnover ratio, and
receivables turnover ratio. These ratios measure how efficiently a company uses its
assets to generate revenues and its ability to manage those assets. With any
financial ratio, it's best to compare a company's ratio to its competitors in the same
industry.
The types of efficiency ratios are:
a) Cash Conversion Cycle

b) Inventory Turnover
c) Accounts Payable to Sales
d) Fixed Asset Turnover
1) Cash Conversion Cycle

A small conversion cycle means that a company's money is tied up in inventory for
less time. In other words, a company with a small conversion cycle can buy
inventory, sell it, and receive cash from customers in less time. In this way, the cash
conversion cycle can be viewed as a sales efficiency calculation.

As on June 30,2018 2018 2017
Accounts Receivable PKR 16,801,794 PKR 15,274,358
Sales (Net) PKR 200,678,362 PKR 167,231,968
Cash Conversion Cycle 30.56 Days 33.34 Days
Cash Conversion Cycle Ratio Interpretation:
The cash conversion cycle measures how many days it takes a company to receive
cash from a customer from its initial cash outlay for inventory. For example, a typical
retailer buys inventory on credit from its vendors. When the inventory is purchased, a
payable is established, but cash isn’t actually paid for some time.
The payable is paid within 30 days and the inventory is marketed to customers and
eventually sold to a customer on account. The customer then pays for the inventory
within 30 days of purchasing it.
The cash cycle measures the amount of days between paying the vendor for the
inventory and when the retailer actually receives the cash from the customer.
As with most cash flow calculations, smaller or shorter calculations are almost always
good. A small conversion cycle means that a company’s money is tied up in inventory
for less time. In other words, a company with a small conversion cycle can buy
inventory, sell it, and receive cash from customers in less time.
In this way, the cash conversion cycle can be viewed as a sales efficiency calculation. It
shows how quickly and efficiently a company can buy, sell, and collect on its inventory.
As you can see, Option’s Cash conversion cycle is 30 days. This means it takes 30
days from paying for his inventory to receive the cash from its sale. Option’s would
have to compare his cycle to other companies in his industry over time to see if his
cycle is reasonable or needs to be improved.
Cash Conversion Cycle Ratio Bar Chart

Year 2017 33
₨167,231,968
15,274,358
Year 2018 31
₨200,678,362
16,801,794
- 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000

Year 2018 Year 2017
Total Days in Year 365 365
Cash Conversion Cycle 31 33
Sales (Net) ₨200,678,362 ₨167,231,968
Accounts Receivable (less Bad Debts) 16,801,794 15,274,358
Total Days in Year Cash Conversion Cycle Sales (Net) Accounts Receivable (less Bad Debts)
2) Inventory Turnover Ratio
Inventory turnover is a ratio showing how many times a company has sold and
replaced inventory during a given period. A company can then divide the days in the
period by the inventory turnover formula to calculate the days it takes to sell the
inventory on hand. It is calculated as sales divided by average inventory.

As on June 30,2018 2018 2017

Merchandise Inventory PKR 15,303,475 PKR 13,912,250
Cost of Goods Sold PKR 147,546,835 PKR 122,079,337
Inventory Turnover 9.64 8.77
Inventory Turnover Ratio Interpretation:
Low inventory turnover ratio is a signal of inefficiency, since inventory usually has a rate
of return of zero. It also implies either poor sales or excess inventory.
A low turnover rate can indicate poor liquidity, possible overstocking, and obsolescence,
but it may also reflect a planned inventory buildup in the case of material shortages or in
anticipation of rapidly rising prices.
High inventory turnover ratio implies either strong sales or ineffective buying (the
company buys too often in small quantities, therefore the buying price is higher).A high
inventory turnover ratio can indicate better liquidity, but it can also indicate a shortage or
inadequate inventory levels, which may lead to a loss in business. High inventory levels
are usual unhealthy because they represent an investment with a rate of return of zero.
It also opens the company up to trouble if the prices begin to fall.
A good rule of thumb is that if inventory turnover ratio multiply by gross profit margin (in
percentage) is 100 percent or higher, then the average inventory is not too high.
8.8
Year 2017 122,079,337
13,912,250
9.6
Year 2018 147,546,835
15,303,475
- 50,000,000 100,000,000 150,000,000 200,000,000
Inventory Turnover Ratio Bar Chart

Inventory Turnover Cost of Goods Sold Merchandise Inventory
3) Accounts Payable to Sales Ratio
This ratio is obtained by dividing the 'Accounts Payables' of a company by its

'Annual Net Sales' the Higher the ratio means that the company is using its suppliers
as a source of cheap financing. The working capital of such companies could be
funded by their suppliers.
As on June 30,2018 2018 2017
Accounts payable PKR 6,955,905 PKR 6,323,550
Sales (Net) PKR 200,678,362 PKR 167,231,968
Accounts Payable to Sales

3% 4%
Payable Turnover Ratio Interpretation:
Since the accounts payable turnover ratio indicates how quickly a company pays off
its vendors, it is used by supplies and creditors to help decide whether or not to
grant credit to a business. As with most liquidity ratios, a higher ratio is almost
always more favorable than a lower ratio.
A higher ratio shows suppliers and creditors that the company pays its bills
frequently and regularly. It also implies that new vendors will get paid back quickly. A
high turnover ratio can be used to negotiate favorable credit terms in the future.
As with all ratios, the accounts payable turnover is specific to different industries.
Every industry has a slightly different standard. This ratio is best used to compare
similar companies in the same industry.
As you can see, Options International average accounts payable for the year was
PKR 6,955,905 (beginning plus ending divided by 2). Based on this formula turnover
ratio is 3. This means that Options International pays his vendors back on average
once every six months of twice a year. This is not a high turnover ratio, but it should
be compared to others in Options International.
Accounts Payble To Sale Ratio Bar Chart

4%
Year 2017 ₨167,231,968
₨6,323,550
3%
Year 2018 ₨200,678,362
₨6,955,905
₨- ₨50,000,000 ₨100,000,000 ₨150,000,000 ₨200,000,000 ₨250,000,000

Year 2018 Year 2017
Acconts Payable to Sales 3% 4%
Sales (Net) ₨200,678,362 ₨167,231,968
Accounts payable ₨6,955,905 ₨6,323,550
Acconts Payable to Sales Sales (Net) Accounts payable
4) Fixed-asset turnover
Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value
of fixed assets (on the balance sheet). It indicates how well the business is using its
fixed assets to generate sales. Generally speaking, the higher the ratio, the better,
because a high ratio indicates the business has less money tied up in fixed assets
for each unit of currency of sales revenue. A declining ratio may indicate that the
business is over-invested in plant, equipment, or other fixed assets
As on June 30,2018 2018 2017
Fixed Assets PKR 14,899,783 PKR 17,062,911
Sales (Net) PKR 200,678,362 PKR 167,231,968
Fixed Asset Turnover 13.47 9.80
Fixed Asset Turnover Ratio Interpretation:
Options International has annual sales of PKR 200,678,362 in the year 2018.Its net
fixed assets are PKR 14,899,783. Based on the given figures, the fixed asset
turnover ratio for the year is 13.47, meaning that for every one Rupee invested in
fixed assets, a return of almost ten Rupee is earned. The average net fixed asset
figure is calculated by adding the beginning and ending balances, then dividing that
number by 2.
Indications of High / Low Fixed Asset Turnover Ratio
Low Ratio
When the business is underperforming in sales and has a relative amount of fixed
assets invested, the FAT ratio may be low.
The return on fixed assets is not favorable with this low ratio, due to the fact that the
amount of the investment made on property and equipment is the biggest among the
asset categories; therefore, revenue generation is reliant upon these assets.
This is especially true for manufacturing businesses that utilize big machines and
facilities. Although not all low ratios are bad, if the company just made some new
large purchases of fixed assets for modernization, the low FAT may have a negative
connotation.
A declining ratio may also suggest that the company is over-investing in its fixed
assets.
High Ratio
A high ratio, on the other hand, is preferred for most businesses. It indicates that
there is a greater efficiency in regards to managing fixed assets; therefore, it gives
higher returns on asset investments.
There is no exact ratio or range to determine whether or not a company is efficient at

generating revenue on such assets. This can only be discovered if a comparison is
made between a company’s most recent ratio and previous periods or ratios of other
similar businesses or industry standards.
Fixed assets vary significantly from one company to another and from one industry
to another, so it is relevant to compare ratios of similar types of businesses.
Fixed Asset Turnover Ratio Bar Chart
10
2017 ₨167,231,968
17,062,911
13
2018 ₨200,678,362
14,899,783
- 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000
2018 2017
Fixed Asset Turnover 13 10
Sales (Net) ₨200,678,362 ₨167,231,968
Furn & Equip. Fixed Assets (less
14,899,783 17,062,911
depreciation)
Fixed Asset Turnover Sales (Net) Furn & Equip. Fixed Assets (less depreciation)
 Profitability Ratios:
Profitability ratios are a class of financial metrics that are used to assess a
business's ability to generate earnings relative to its associated expenses. For most
of these ratios, having a higher value relative to a competitor's ratio or relative to the
same ratio from a previous period indicates that the company is doing well.
The types of profitability ratios are:
a) Return on Sales/ Net Profit Margin

b) Return on Capital/Equity
c) Return on Assets/ Asset Turnover Ratio
d) Gross Profit Margin
e) Operating Profit Margin
1) Return on Sales/ Net Profit Margin
Net profit margin, or net margin, is equal to net income or profits divided by total
revenue, and represents how much profit each Rupee of sales generates. Net profit
margin is the ratio of net profits or net income to revenues for a company, business
segment or product. Net profit margin is typically expressed as a percentage but can
also be represented in decimal form. The net profit margin illustrates how much of
each Rupee collected by a company as revenue translates into profit. The term "net
profits" is equivalent to "net income" on the income statement, and one can use the
terms interchangeably. Most commonly, investors will refer to net profit margin as
the "net margin" and describe it as "net income" divided by total sales instead of
using the term "net profits."

As on June 30,2018 2018 2017
Sales (Net) PKR 200,678,362 PKR 167,231,968
Net Income for the year PKR 90,881,222 PKR 86,570,040
Net Profit Margin 45% 52%
Net Profit Margin Ratio Interpretation:
Net profit (NP) ratio is a useful tool to measure the overall profitability of the business. A
high ratio indicates the efficient management of the affairs of business.
There is no norm to interpret this ratio. To see whether the business is constantly
improving its profitability or not, the analyst should compare the ratio with the previous
years’ ratio, the industry’s average and the budgeted net profit ratio.
The use of net profit ratio in conjunction with the assets turnover ratio helps in
ascertaining how profitably the assets have been used during the period.
Return on Sales/ Net Profit Margin Bar Chart
51.8%
Year 2017 ₨86,570,040
₨167,231,968
45.3%
Year 2018 ₨90,881,222
₨200,678,362
₨- ₨50,000,000 ₨100,000,000 ₨150,000,000 ₨200,000,000 ₨250,000,000

Year 2018 Year 2017
Return on Sales/ Net Profit Margin 45.3% 51.8%
Net Income for the year ₨90,881,222 ₨86,570,040
Sales (Net) ₨200,678,362 ₨167,231,968
Return on Sales/ Net Profit Margin Net Income for the year Sales (Net)
2) Return on Capital/Equity
Return on Equity a profitability ratio, measures how efficiently a company is using its
capital. Simply put, ROE measures how well a company is using its capital to
generate profits. The return on capital employed is considered one of the best
profitability ratios and is commonly used by investors to determine whether a
company is suitable to invest in or not.
As on June 30,2018 2018 2017

Capital / Owner's
PKR 140,881,221 PKR 65,104,494
Equity
Return on Equity 65% 13.3%
Return on Equity Ratio Interpretation:
The return on capital employed shows how much operating income is generated for
each Rupee invested in capital. A higher ROE is always more favorable as it implies
that more profits are generated per Rupee of capital employed. However, as with any
other financial ratios, calculating just the ROE of a company is not enough. Other
profitability ratios such as return on assets, return on invested capital, and return on
equity should be used in conjunction with ROE to determine whether a company is truly
profitable or not.
In the example with Options International, a ROE of 65% in 2018 means that for every
Rupee invested in capital, the company generated 65% in operating income. To
determine whether Options International ROE is good, it is important to compare it
against its competitors and not across industries.
Return on Capital/Equity Ratio Bar Chart

133%
Year 2017 ₨86,570,040
65,104,494
65%
Year 2018 ₨90,881,222
140,881,221
- 50,000,000 100,000,000 150,000,000

Year 2018 Year 2017
Return on Capital/Equity 65% 133%
Return on Capital/Equity Net Income for the year Capital / Owner's Equity
3) Return on Assets
The distinct difference between return on assets and asset turnover is that the return on
assets considers net income and asset turnover considers revenues. By using net
income instead of revenues, the return on assets formula factors in a company's
expenses.

As on June 30,2018 2018 2017
Total Assets PKR 165,193,798 PKR 85,891,937
Asset Turnover Ratio 0.55 1.01
Return on Assets Ratio Interpretation:
The return on assets ratio measures how effectively a company can earn a return on its
investment in assets. In other words, ROA shows how efficiently a company can convert
the money used to purchase assets into net income or profits.
It only makes sense that a higher ratio is more favorable to investors because it shows
that the company is more effectively managing its assets to produce greater amounts of
net income. A positive ROA ratio usually indicates an upward profit trend as well. ROA
is most useful for comparing companies in the same industry as different industries use
assets differently. For instance, construction companies use large, expensive
equipment while software companies use computers and servers.
Return on Assets/ Asset Turnover Ratio Bar Chart

101%
Year 2017 ₨86,570,040
₨85,891,937
55%
Year 2018 ₨90,881,222
₨165,193,798
₨- ₨50,000,000 ₨100,000,000 ₨150,000,000 ₨200,000,000

Year 2018 Year 2017
Return on Assets/ Asset Turnover
55% 101%
Ratio
Total Assets ₨165,193,798 ₨85,891,937
Return on Assets/ Asset Turnover Ratio Net Income for the year Total Assets
4) Gross Profit Margin
Gross profit margin is a financial metric used to assess a company's financial health and
business model by revealing the proportion of money left over from revenues after
accounting for the cost of goods sold. One can calculate gross profit margin, also known
as gross margin, by dividing gross profit by revenues.
As on June 30,2018 2018 2017
Sales (Net) PKR 200,678,362 PKR 167,231,968
Gross Margin PKR 53,131,527 PKR 45,152,631
Gross Profit Margin 26% 27%
Gross Profit Margin Ratio Interpretation:
Generally, the higher the gross profit margin the better. A high gross profit margin
means that the company did well in managing its cost of sales. It also shows that the
company has more to cover for operating, financing, and other costs. The gross profit
margin may be improved by increasing sales price or decreasing cost of sales.
However, such measures may have negative effects such as decrease in sales volume
due to increased prices, or lower product quality as a result of cutting costs.
Nonetheless, the gross profit margin should be relatively stable except when there is
significant change to the company’s business model.
Gross Profit Margin Ratio Bar Chart

27%
Year 2017 ₨45,152,631
₨167,231,968
26%
Year 2018 ₨53,131,527
₨200,678,362
₨- ₨50,000,000 ₨100,000,000 ₨150,000,000 ₨200,000,000 ₨250,000,000

Year 2018 Year 2017
Gross Margin ₨53,131,527 ₨45,152,631
Sales (Net) ₨200,678,362 ₨167,231,968
Gross Profit Margin Gross Margin Sales (Net)
5) Operating Profit Margin

Operating Profit Margin is a profitability, or performance, ratio used to calculate the
percentage of profit a company produces from its operations, prior to subtracting taxes
and interest charges. It is calculated by dividing the operating profit by total revenue,
and expressed as a percentage. The margin is also known as EBIT (Earnings before
Interest and Tax) Margin.
Operating Profit Margin often differs across companies and industries and is often used
as a metric for benchmarking one company against similar companies within the same
industry. It can reveal the top performers within an industry and indicate the need for
further research regarding why a particular company is outperforming, or falling behind,
its peers.
As on June 30,2018 2018 2017
Sales (Net) PKR 200,678,362 PKR 167,231,968
EBIT PKR 33,628,674 PKR 27,739,369
Operating Profit Margin 17% 17%
Operating Profit Margin Ratio Interpretation:
The operating profit margin ratio is a key indicator for investors and creditors to see how
businesses are supporting their operations. If companies can make enough money from
their operations to support the business, the company is usually considered more
stable. A higher operating margin is more favorable compared with a lower ratio
because this shows that the company is making enough money from its ongoing
operations to pay for its variable costs as well as its fixed costs.
For instance, Options International with an operating margin ratio of 17 percent means
that for every Rupee of income, only 17 percent remains after the operating expenses
have been paid. This also means that only 17 percent is left over to cover the non-
operating expenses.
Operating Profit Margin Ratio Bar Chart
16.59%
Year 2017 ₨27,739,369
₨167,231,968
16.76%
Year 2018 ₨33,628,674
₨200,678,362
₨- ₨50,000,000 ₨100,000,000 ₨150,000,000 ₨200,000,000 ₨250,000,000

Year 2018 Year 2017
Operating Profit Margin 16.76% 16.59%
EBIT ₨33,628,674 ₨27,739,369
Sales (Net) ₨200,678,362 ₨167,231,968
Operating Profit Margin EBIT Sales (Net)
Options International (SMC-PVT) LTD

Balance Sheet
Year Ending December 2018
Assets Year 2018 Year 2017
₨ ₨
Cash 78,834,145 4,504,381
Accounts Receivable (less Bad Debts) 16,801,794 15,274,358
Merchandise Inventory 15,303,475 13,912,250
Prepaid Expenses 39,354,601 35,138,037

₨ ₨
Total Current Assets 150,294,015 68,829,026
Furn & Equip. Fixed Assets (less depreciation) 14,899,783 17,062,911

₨ ₨
Total Assets 165,193,798 85,891,937
Liabilities and Capital Year 2018 Year 2017
₨ ₨
Accounts payable 6,955,905 6,323,550
Short Term loans 17,356,672 14,463,893
₨ ₨
Total Current Liability 24,312,577 20,787,443

₨ ₨
Total Liabilities and Capital/Owner's Equity 165,193,798 85,891,937
COMPARATIVE COMMON SIZE INCOME STATEMENT

Year Year
2018 2017
Sales (Net) 100% 100%
Cost of Goods Sold 73.52% 73.0%
Gross Margin 26.5% 27.0%
Expenses (less other income) 12.6% 13.0%
Net Income for the year 45.3% 51.8%
COMPARATIVE INCOME STATEMENT

Year Ending December 2018
Description Year 2018 Year 2017

₨ ₨
Sales (Net) 200,678,362 167,231,968
Cost of Goods Sold 147,546,835 122,079,337

₨ ₨
Gross Margin 53,131,527 45,152,631
₨ ₨
Less :Administrative & General Expnece 19,502,853 17,413,262
₨ ₨
EBIT 33,628,674 27,739,369
Les:Expenses (less other income) 25,354,799 21,687,085
Add:Accumulated Profit 63,104,494 63,104,494

₨ ₨
Net Income for the year 90,881,222 86,570,040
Ratios Analysis
Liquidity 2018 2017
Quick Ratio (Acid Test) 3.93 0.95

Debt/liabilities to Equity/Capital 0.17 0.32
Asset Management Ratios/ EfficiencyRatios

Cash Conversion Cycle 31 33
Inventory Turnover 9.6 8.8
Acconts Payable to Sales 3% 4%
Fixed Asset Turnover 13 10
Profitability
Return on Sales/ Net Profit Margin 45.3% 51.8%
Return on Capital/Equity 65% 133%
Return on Assets/ Asset Turnover Ratio 55% 101%
Operating Profit Margin 16.76% 16.59%
APPENDIX
Letter Of Authorization
27. Financial Statements

Options International (SMC-PVT) Ltd.
1. Balance Sheet Statement

2. Income Statement / Profit & Loss Account

3. Cash Flow Statement

4. Financial Expense Statement

5. Schedule of Fixed Assets Statement

BIBIOGRAPHY
 MARKEING MANAGEMENT
(PHILIPKOTLAR)
 PERSONNEL MANAGEMENT
(C.B.MAMORIA)
 FINANCE MANAGEMENT
(I. M. PANDEY)
ME WITH TEAM OPTIONS CELEBRATING A EMPLOYEE BIRTHDAY

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INTERNSHIP REPORT

OPTIONS INTERNATIONAL (SMC-PVT) LTD.

Prof. Dr. Rizwan Qaiser Danish

HAILEY COLLEGE OF COMMERCE

Dear Sir Rizwan Qaiser Danish,

Training and Development/Performance Appraisal 24

Time Keeping, Achievements 27

Financial Ratios Analysis and Interpretations 40

Best fun Diving Restaurant in Pakistan Award

Best Restaurant award: - By food network

Best achievement award: - By Jang group

Best business award: - By Governor Punjab

Food division of Options International launched OPTIONS –An Exotic Restaurant,

2.1. OPTIONS AN-EXOTIC RESTAURANT

6. FAST FOOD / PIZZA

OPTIONS RESTAURANT provides various services to their customers. They try to

1.2 OPTIONS COFFEE SHOP

1.2.1. UNIQUE FEATURES:

3. OPTIONS HOMEMADE ICE CREAM

4. SPECIAL COLD BEVERAGES

6. LUDO / CHESS TABLEs

Information is motivation and therefore, we have created a special news/book corner

1.3. OPTIONS BAKERS & DELIGHTS

1.3.1 BAKERY CATELOG SPECIALITIES:

Options Bakers is a pioneer in introducing picture cakes in Pakistan. We use Italian

3. HISTORY & LOCATIONS

Multiple locations: - Faisalabad & Lahore

1. Falcon Complex, Lahore

 Food quality, creativity and presentation

The Famous Managing director of Royal Emirates Group of

 Founder and President of Asian American Trade Association

 Highly anticipated Speaker at International Business Forums

Organization structure is the presentation of the division of system. It helps to keep

The organization structure is given below of the Options restaurant:

 New developing area

THE OPTIONS RESTAURANT has under the category of “SMALLSCALE”.

 SOLE PROPRIETOR CONCERN

Options Restaurant’s main objectives are given

• Special dishes make by expert man

• Fresh Vegetables, Fruits and Grain

• Maintain quality by experience cookers.

8.1. Product Mix

The product mix of a company has two characteristics: -

8.2. Promotion Mix

Basically, promotion is a attempt to influence, and more specifically promotion is an

There are four forms of promotion are as follows.

• Publicity and Public Relation

8.3. Pricing Policy

Pricing decision has strategic importance in any enterprise. It means decision of

The price of products should be determined in such a matter so as to offer a reasonable

• Cost of Vegetables, Fruits and other cooking material

Advertisement can define as “Mass, paid communication presentation and promotion of

OPTIONS RESTAURANT The main method of advertising is Newspaper, Pamphlets,

They are as follow:

11. MARKETING RESEARCEH

Thus, marketing research concentrates on the study of product planning, advertising

12. TRAINING, DEVELOPMENT & PROMOTION

In personnel management an opportunity of advancement is given to the new or old

13. PERFORMANCE APPRAISAL SYSTEM

ACCORDING TO EDWARD FLIPPO “Performance appraisal is a systematic, periodic,

The performance appraisal evaluates the performance of an employee by quantitative

14. PERSONAL RECORD

15. WAGES & SALARY

In “THE OPTIONS RESTAURANT” wages and salary is to be paid on monthly basis.