Pel Internship Report

Internship Report on “Pak Elektron Limited” 2016
INTERNSHIP REPORT
Internship Duration
June 27, 2016 to August 8, 2016
Internship Department
INTERNAL RELATIONS AND ADMINISTRATION (IR & A)
Program
BBA
Institution
Institute of Business Administration, Punjab University

PREFACE
The purpose of this report is to apply all those concepts which I have learned during the BBA (Hons)
program. This report will surly provide a comprehensive introduction to Pak Elektron Limited, the
market leaders in this cutting-edge environment, its business strategy, internal management,
growth and development prospects.
Also there is analysis of Pak Elektron Limited both internally and externally from the business point
of view, recognizing that building market share and increasing profitability should not be the only
focal point, but maintaining the market and consumer mind is the real story behind the successive
companies.
During a span of six weeks of training as intern I thoroughly observed the function of different
departments of PEL (Pak Elektron Limited). As apprentice I analyzed the basic working of PEL and
especially its IR&A department and summarize this in my internship report.
This internship report contains all the information about my work experience with Pak Elektron
Limited (PEL) which is the leading company in producing electrical equipment and home appliance
in Pakistan.
IBA, University of the Punjab

DEDICATION
Dedicated to my family and all those who helped me in this internship.

ACKNOWLEDGEMENT
First of all I would thank Allah and then my gratitude to my loving parents and humble teachers. I
am really pleased here to acknowledge the sheer efforts of many people those who have provided
me their relentless services in the completion of my Internship and my internship report. I would
like to express my gratitude to my advisors who really helped me a lot to gain practical knowledge
about general company working. I am also grateful to IR&A head Ms Komal Saghir and their staff.
Without their guidance, this exercise of internship would not have resulted in a success.

EXECUTIVE SUMMARY
Pak Elektron Limited (PEL) is majority owned by the Saigol Group and was established 58 years ago
on Mar 03, 1996 as a Public Limited Company. The principal activity of PAEL is manufacturing and
distribution of transformers, switch gears, energy meters, power transformers, construction of grid
stations and electrification works, refrigerators, air conditioners, microwave ovens, televisions,
generators and washing machines. It is listed on all three stock exchanges. PAEL also has a 100%
stake in PEL Marketing Limited, which was incorporated on August 2011 as a private limited
company. Its business is sale of electrical capital goods and domestic appliances.
I did my internship in the IR&A department of PEL. I learned a lot during my internship period.
There are various section in this department. Those are recruitment and selection, compensation
and benefit, training and development, internal and external affairs. Each of the section has its own
significance and importance. Each plays an important role in the working of IR&A department.
Recruitment is the process of identifying that the organization needs to employ someone up to the
point at which application forms for the post have arrived at the organization. Selection then consists
of the processes involved in choosing from applicants a suitable candidate to fill a post. There are
two types of recruitments at PEL
 Recruitment by HR
 Recruitment by IR&A
Compensation and benefits is a sub-discipline of human resources. Compensation includes not only
salary, but also the direct and indirect rewards and benefits the employee is provided with in return
for their contribution to the organization.
Training conducted by IR & A focuses on staff from NG to S1 (non-grade to supervisor). During our
stay at here the trainings conducted were:
 Receptionist
 Labors
 Guards
 Lower staff
 Mess

Table of Contents
TYPE CHAPTER TITLE (LEVEL 1) ....................................................................................................................................... 1
TYPE CHAPTER TITLE (LEVEL 2).................................................................................................................................................. 2
Type chapter title (level 3) ........................................................................................................................................... 3
TYPE CHAPTER TITLE (LEVEL 1) ....................................................................................................................................... 4
TYPE CHAPTER TITLE (LEVEL 2).................................................................................................................................................. 5
Type chapter title (level 3) ........................................................................................................................................... 6

PART ONE
BACKGROUND OF PEL
INTRODUCTION
PEL contributes in our lives every day, by providing us not just appliances for a better lifestyle, but
with Power products like transformers, switch gears and energy meters. They are the pioneers of
electrical manufacturing in Pakistan and they are here to make a difference in our lives whether it is
through taking care of our home, our lifestyle, making our day to day activities easier or by helping
us save energy.
They say they are here to “Change your Life”.
Since its inception, PEL has been operating keeping in view the philosophy of innovation and
advancement. It has consistently contributed in the development of engineering sector in Pakistan,
keeping in mind the National interest and Consumer welfare. It has introduced a range of quality
electrical equipment and home appliances by producing hundreds of engineers, skilled workers and
technicians through its apprenticeship schemes and training programs.
Until the acquisition by Saigol Group, PEL was solely catering the power equipment market but in
1981 the company ventured into home appliances market in 1981 as a part of Group’s long term
strategy of diversification.
The company comprises of two divisions
 Appliance Division
 Power Division

Appliance Division:
This division of PEL consists of appliance manufacturing like air conditioner, refrigerator,
microwave, deep freezer, water dispenser.
Power Division:
Power division manufacturing of electrical goods like energy meters and transformers. PEL is one of
major supplier of Water and Power Development Authority (WAPDA) and Karachi Electrical Supply
Corporation (KESC) which is largest utilities in Pakistan. It has distribution transformer, power
transformer, dry type transformer, energy meter, switch gear etc.

HISTORY
It was established in 1956 in technical collaboration with M/s AEG of Germany
with object of initially producing transformers, switch
gears and electric motors. AEG experts and PEL personnel carried out the designing and
production of these equipment’s jointly. It is the oldest composite electrical equipment-
manufacturing unit of Pakistan producing power and consumer products. In October 1978, the
company was taken over by Saigol Group of Companies. In the year 1980 the company expanded
into consumer products with the introduction
of Window Type Air Conditioners and today also manufactures Split Air Conditioners, Refrigerators,
Microwave ovens, Deep Freezers and Compressors type products right from the beginning which
have been of a high standard and the name PEL is synonymous with QUALITY all over Pakistan.
PEL is now technology forerunner and market leader in providing new product and services to
meet ever changing and technology intensive needs of its customers. PEL’s EPC contracting division
delivers customs 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
development 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. 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’s employee are its most valuable asset
and PEL keeps them very dear.

PRESENT STATUS OF PEL
Pak Elektron Limited (PEL) falls in the category of consumer durables. This category in the past was
considered as luxury goods. People used to think it like this because the per capita income was low.
Most people used to buy washing machines and deep freezers to show them off but with
technological advancement, knowledge and increase in disposable wealth now the deep freezer has
become the necessity of every house weather it is small or large.
The company comprises of two divisions:
 Appliances Division
 Power Division
In home appliances the company sells its products through dealers’ network of 1651 covering 271
cities and towns across Pakistan managed through 25 Area Sales Offices.
In Power Appliances PEL is one of the major electrical equipment suppliers to Water and Power
Development Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC) which are
largest power suppliers in Pakistan.
Today, PEL has become a household name. Its products are not only in great demand in the local
market but the Company has started exporting its appliances division products. Pak Elektron
Limited is the Public Limited Company. It is registered with Stock Exchange Market. The share price
of PEL is Rs.73.14.
Today PEL is working all over the PAKISTAN and also exporting its product to Middle East and South
Africa.
Zonal Offices in Pakistan
 Lahore
 Karachi
 Faisalabad
 Peshawar
 Sukkur

 Rawalpindi
 Multan
 Gujranwala
 Sahiwal
 Hyderabad
Offices in Abroad
 Dubai
 Abu Dhabi
 Qatar
 Oman
 Saudi Arabia
 South Africa

MAIN COMPETITORS
PEL is the oldest and pioneer organization in home appliances market. With the passage of time
many players have entered in this business and now the competition has become intense. PEL
has celebrated its 50 years anniversary in 2006 but the Dawlance which has completed just its
25 years of birth has risen itself to No.1 brand in home appliances market.
PEL and Siemens fulfilled 65‐70% (each having a market share of 32‐35%) of local transformers
demand followed by some 10‐12 small players who retained the rest of the market share.
Siemens has expressed its intention to divest from transformers business which provides an
investment opportunity to PEL to increase its market share. The company has decided to not go
Siemens transformer business acquisition in order to repay its long term debt stock, especially
due to affixed condition by Siemens to buy its real estate along with the transformers business
makes this option less feasible for PAEL. Moreover, acquisition of Siemens by PEL would likely
raise monopoly concerns, as the combined market share of both companies goes up to 70%.
Air Conditioners
 General
 Daiken
 Waves
 National
 Dawlance
 Sharp
 LG
Refrigerator
 Dawlance,
 Phillips
 Sharp
 Samsung
 LG
Deep Freezer

 Waves
 Candy
 Dawlance
Television
 Sony
 Phillips
 Panasonic
Compressors
 Dawlance
 Tecusah
 Embraco
 National
MAIN CUSTOMERS OF PEL

The customers of PEL can be categorized in two categories i.e. home consumers and industrial
consumers. Home consumers are the common individuals who mostly purchase the home
appliances. The industrial consumers are as follows:
 LESCO
 GEPCO
 FESCO
 IESCO
 PESCO
 MEPCO
 HESCO
 QESCO
 KESC
 AJK Electricity Department

The buyers other than these electric supply companies are the independently working companies

Vision and Mission of PEL
Every organization has Vision and Mission Statement, which demonstrateemployees, customers
and other personals related to business that where they project themselves in coming years and
what they want to achieve. It reflects company image. Vision statements and mission statements
convey in a few words, what it is that the organization exists in the world for. PEL’s vision and
mission are
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 stake holders through optimal use of resources.
To promote good governance, corporate values, and safe working environment with strong sense
of social responsibility.

COMPANY'S OBJECTIVES
By incorporating the essence of the mission statement in the company branding line, company
intends to create the desired image and achieve the following objectives.
 A high visibility level.
 Heightened awareness amongst the target market.
 To favorably mobilize the target market towards the organization and its products.
 Minimum cost for maximum projection.
 Enhance the level of relationship with customers (corporate / individual) and employees.
 Upgrade teaching abilities, skills and knowledge of teaching staff.
 Upgrade teaching equipment to the required standards.
 Enhance the participation of private Sector in training activities at Management level.
 Prepare training plans, programs and projects keeping in view the local as well as foreign
manpower training requirements.
As stated earlier the corporate image will bring within its ambit all the facets of the organization.
The facets, which while specific in their content, will corroborate the main branding line. By unified
approach all the media will be utilized to build a strong corporate identity, which will spill over into
all facets (Marketing, Customer care, sales,)and within the organization effecting a strong
mobilization at every level achieving one major objective “A stronger image of PEL”.

GROUP PROFILE
The Group consists of:
 Parent Company - Pak Elektron Limited
 Subsidiary Company - PEL Marketing (Private) Limited
Parent Company
Pak Elektron Limited (PEL) was incorporated in Pakistan on March 03, 1956 as a Public Limited
Company under the Companies Act, 1913 (replaced by the Companies Ordinance, 1984). Registered
office of PEL is situated at 17 – Aziz Avenue, Canal Bank, Gulberg - V, Lahore. PEL is currently listed
on all three Stock Exchanges of Pakistan. The principal activity of PEL is manufacturing and sale of
electrical capital goods and domestic appliances. PEL is currently organized into two main operating
divisions - Power Division and Appliances Division. PEL’s activities are as follows:
Power Division: manufacturing and distribution of transformers, switchgears, energy meters,

power transformers, construction of grid stations and electrification works.
Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners,

microwave ovens, televisions, generators and washing machines.
Subsidiary Company
PEL Marketing (Private) Limited (‘PMPL’) was incorporated in Pakistan on August 11, 2011 as a
private limited company under the Companies Ordinance, 1984. Registered office of PMPL is
situated at 17 - Aziz Avenue, Canal Bank, Gulberg - V, Lahore. The principal activity of PMPL is sale
of electrical capital goods and domestic appliances.
Saigol Group of Companies

In 1948, the Saigols migrated from Calcutta and initiated their business in Lyallpur (later named to
as Faisalabad), the textile city of Pakistan, under the banner of Kohinoor Industries Limited.
Textile
Kohinoor Textile Mills
The Saigols set up the first major textile unit - The Kohinoor Textile Mills under the umbrella of
Kohinoor Industries Limited. The Kohinoor Textile Mill has state-of-the-art quality control from raw

material to finished product manufacturing. Its laboratory is top rated amongst the best
laboratories in Pakistan for testing of textile raw materials, other inputs and yarn.
Initial Capacity: 25,000 spindles
Current Capacity: 71,648 spindles
Saritow Spinning Mills & Azam Textile Mills
In 1987, the Saritow Spinning Mills and Azam Textile Mills were established under the banner of
Saigol Group of Companies. Saritow Spinning Mills is a spinning unit with 25,440 spindles capacity.
Facilitated with the most modern and efficient Japanese and European machinery, its knitted yarn
is renowned in the Far East and Europe for its fine quality. Azam Textile Mills is reputed for its
carded and combed yarn, which is quite popular for premier knitting and weaving.
Fuel and Energy

Kohinoor Power Co. Ltd.
In 1991, the first power unit commissioned in Pakistan, in the Private sector, was Kohinoor Power
Company Limited. Its present production capacity is 15 MW.
Kohinoor Energy Ltd.
1995, another power unit, Kohinoor Energy Limited, was established. Kohinoor Power Limited is a
120 MW power plant located on the outskirts of the city of Lahore. This project has an annual
turnover of $80 million.
Engineering
Pak Elektron Ltd.
In 1978, the Saigol Group of Companies purchased major shares of PAK Elektron Limited. At this
junction, the company was only manufacturing transformers and switchgears. With the Saigols in
management, PEL expanded into Air Conditioner manufacturing
Banking and Finance

Union Bank Ltd.
Union Leasing Ltd.

Trading
Saritow Pakistan Ltd.
Saritow Spinning Mills Limited (SSML) is a strong company on its own stead that has been well
managed financially and holds a commendable market share in the domestic market, however, the
company currently has no exporting power and will not be benefitting from the GSP scheme of
trade with EU.
Saigol Computer Ltd.
In early Eighties, the Saigol initiated with the sole distribution for Wang Laboratories Inc., which
was followed by the dealership of Radio Shack Line of computers manufactured by Tandy
Corporation. Resellers rights from Tricord Systems Inc. USA and Tulip Computers of Netherlands
were obtained along with a line of RISC based multiprocessor capable of providing workstation
solutions from Sun Micro Systems Inc., USA.
Automobiles
Kohinoor Motor Works Ltd.
The Saigol Group also entered a joint venture with CHINA QINGQI under the banner of Kohinoor
Motor Works Limited. This joint venture enabled manufacturing of an affordable and durable
motorbike for the masses in Pakistan.
Keeping Saigol’s tradition since its takeover by the group, PEL has continuously been adding new
products to its range. As a result, the PEL Group has registered a significant increase in its sales
volume during the last ten years.
PEL equipment has been used in numerous of national importance, over 2 periods of years. At the
same time within Pakistan, PEL equipment was chosen for such vital projects as Mangla Power
Station, Tarbela Power Station and Kot Addu Power Station. PEL for the first time in Pakistan
developed Dry Type Transformers up to 750KVA rating, meeting high safety and design standards.
PEL has had the privilege of getting its equipment approval and certified from such well reputed
international consultants as:
 Preece, Cardew & Rider, England
 SNAM Progetti, Italy

 Societe Dumez, France
 Ensa, France
 Miner & Miner International Inc. USA and many others.
It is also an ISO-9002 certified company in compressors and energy meters.

PEL TIMELINE
Pak Elektron was setup in 1956 as a Public Limited Company with the object of initially producing
transformers, switchgears, and electric motors. AEG experts and PEL personnel carried out the
designing and production of this equipment jointly.
After the conclusion of joint venture agreement with AEG Saigol Group acquired the PEL COMPANY
in October 1978.
The company floated its shares to the general public and was listed on Karachi Stock Exchange (KSE)
and Lahore Stock Exchange (LSE).
In 1980, Appliances Division was established and in 1981 its starts the production of Window Type
Air Conditioners with the technical collaboration of General Corporation of Japan. This air
conditioner was well received in the market for its quality. Subsequently in 1987 the production of
Refrigerators and Deep Freezers was started.
In 1993 the company has started the assembly of Compressors for Refrigerators and Deep Freezers
under technical collaboration with Messrs. NECCHI COMPRESSORI of Italy.
It was in early 70s that PEL became known in overseas markets due to its quality. The company
started its export to countries like Saudi Arabia, Abu Dhabi, Qatar etc. Later on PEL supplied
electrical equipment to various other countries in the Middle East, Far East and Africa with great
success.
At the same time with in Pakistan, PEL equipment was chosen for such vital projects as Mangla
Power Station, Tarbela Power Station and Kot Addu Power Station. PEL for the first time in Pakistan
developed Dry Type Power Transformers upto 750KVA rating, meeting high safety and design
standards.
Subsequently, PEL developed portable generating sets and specialized D.C. motors etc. of various
capacities for Army use and entered in the phase of manufacturing equipments meeting strict Army
standards.
The company has setup a subsidiary, PEL Appliances Ltd. for the manufacture of Air Conditioners,
Refrigerators and Deep Freezers in Gadoon Amazai Industrial Estate.

The company has setup a subsidiary at Hattar, District Haripur, NWFP, a joint venture with Daewoo
Electronics Company, Korea for the manufacture of Colour Television Sets. PEL Daewoo Electronics
has started commercial production since June 1995.
In July 1997, PEL has been appointed distributors for sale of all CARRIER products in Pakistan.
In the year 2001, PEL has been appointed distributors for sale of all SAMSUNG products in Pakistan.
In the year 2004, PEL acquired technology Ganz, Hungary to produce power transformers.
In the year 2005, PEL acquired Technical Assistant Agreement Pauwels, Belgium to produce
distribution transformers.
In the year 2009, PEL signed distribution agreement with LG that PEL will be the sole distributor of
LG home appliances.
Key Milestones for PEL
Acquired
technology from
Ganz, Hungary
in 2004 to
PEL starts manufacturing produce power
of air conditioners with transformers
PEL established in 1956 the assistance of Fujitsu, PEL signs agreement

Japan in 1981 with ABB, USA in Agreement signed with
1992 to manufacture Pauwels, Belgium in 2005
energy meters to produce distribution
transformers
1950 1960 1970 1980 1990 2000 2009

Acquired license to
manufacture VCBs Distribution Agreement
from Hitachi, Japan in Acquired technology signed with LG. PEL will be
Technical collaboration 1988 from Carrier, USA to the sole distribution of LG’s
agreement reached with manufacture window home appliances
AEG Germany in 1958 A/C in 1997
Until the acquisition by the Saigols Group, PEL was solely catering to the power equipment market.
The Company ventured into home appliances market in 1981 after acquisition as a part of the
Group’s long term strategy of diversification.
In the Power Division the products include transformers up to 33KV – 5MVA capacity, switch gears
up to 33KV, shunt capacitor banks and auto recloses, relays and control panels. The company has
also started the production with the technical collaboration of Hitachi Corporation, Japan, and

Vacuum Circuit Breakers for its switchgear. During the year 1994 the commissioning of energy
meter plant with the technical assistance of ABB USA has also been completed and the plant is in
production at the moment. The ISO 9002 certification of energy meter plant was received during
1997.
PEL’s first major power product being produced since 1956 is DISTRIBUTION TRANSFORMERS, up to
33KV and 500KVA capacity. These oil-immersed transformers are suitable for both indoor and
outdoor installations being manufactured as per IEC 76, BSS 171 or VDE 0532 standards. Sealed
tank designs are available up to 200KVA, while all large size are conservator type PEL Transformers
have been tested in KEMA labs (Holland), against Short Circuit Withstand in addition to Routine
Type and Impulse Tests in Pakistan.
Besides the standard 11/0 415KV transformers, PEL also manufactures 33/11KV transformers upto
5000KVA, Pad Mounted Transformers, Kiosks, Dry Type Transformers, Special Furnace Transformers
and Silicon Oil Transformer etc.
PEL’s second major power product is High Tension and Low Tension Switch gears being produced
for indoor and outdoor installations complying with the latest international specification i.e. IEC,
BSS or VDE. PEL’s switchboards are sheet fabricated, totally enclosed, floor mounting vermin and
dust proof. These are supplied with factors fitted relevant components and copper bus bars,
internal wiring, terminal blocks etc., in preprinted form. Indoor and outdoor type sheet steel clad,
freestanding L.T Switchgear up to 4000 Amps and 100KV short circuit withstand level are
manufactured for the control of Transformers, Feeders etc. supplied completed with Air Circuit
Breakers, Molded Case Circuit Breaker. Knife Switches with HRC Fuses or Load Break Switches with
necessary meters, relays and instruments. Low-tension switchgear manufacturing line consists of
the following items:
 Incoming and Outgoing Panels
 Motor Control Centers
 Motor Protective / Starting Stations
 Unit Type Distribution Boards
 Automatic Power Factor Improvement Plants

 Relay and Control Panels
 AC / DC Auxiliary Services Panels
 Feeder Pillars
 Kiosk Substations etc.
33KVA and 11KV Auto Recloses, Shunt Capacitor Banks (Switched and Unswitched) land other
specialized switch gear and control centers in fixed and draw out designs are also manufactured by
PEL according to customer requirements.
PEL’s third power product is single phase and three phase induction motors being manufactured in
35 models up to 40-horse power range. PEL’s totally enclosed fan cooled motors are suitable for
operations under extreme climatic conditions. Its robust design and special enclosure offers
effective protection against dirt and humidity. These motors are designed and manufactured
according to IEC, VDE / BSS standards. PEL’s motors are most suitable for spinning mills, power
looms, ginning factories, oil expeller, cement, sugar and chemical plants, tube wells etc.
PEL’s fourth power product is the high tech, high quality single-phase watt-hour meters being
produced under license from M/s ABB Power T&D Company USA in the range 10-40 amps and rated
240 volts. They are also planning to expand in other metering areas in the near future
Specialized products also covered under out manufacturing program include small generators,
battery charger sets, vertical hollow shaft motors and pumps etc. Special products like 11KV and
33KV auto recloses and 11KV shunt capacitor banks were also applied to WAPDA under IDA and
USAID international contracts through open international competition. It is another first by PEL in
Pakistan indicating the technical expertise of the company.
Negotiations are going on with several well-reputed international companies for technical
collaboration agreement and it is hoped that PEL shall produce various 132KV equipment in the
near future. Similarly, a separate development program has been chalked out for electric motor
upto250HP along with pumps.
During May 1993 we had setup a high tech compressor manufacturing facility at PEL in
collaboration with NECCHI of Italy, the first such plant in Pakistan to produce all types of

Refrigerators and Deep Freezers. The product has received an instant acceptability from the market
and in future we would be expanding this facility to include other types of compressors.
Production of High Color Television has also been started and product has been well received in the
Pakistan market our joint venture company M/s PEL-DAEWOO Electronics Ltd.
The company has in house advanced computer facility that continuously helps in improving designs,
material, and inventory control and project implementation schedules.
In order to keep the high quality and standard of production our quality control and inspection
department keep a check of the quality control at various stages of production of equipment. A
very strong quality assurance and quality control (QA / QC) program has been introduced for our
normal productions and we are also in the process of implementing ISO-9002 certification at every
level.

PEL and LG Strategic Alliance (2009-11)

Pak Elektron Limited, held a press conference (April 21, 2009) to announce the strategic alliance
between Pak Elektron Limited & LG Electronics. An agreement in this regards was signed at the
ceremony by Mr. Murad Saigol, Director Operations, Pak Elektron Limited & Mr. E. D. Choi, General
Manager, LG electronics, Pakistan Liaison Office. Mr. Saigol announced this to be the biggest
partnership in the history of home appliances and air conditioners in Pakistan and this strategic
alliance will expand in the times to come. PEL had been
appointed the “OFFICIAL DISTRIBUTOR” for LG Air
Conditioners, Refrigerators, Microwave ovens, washing
machines and vacuum cleaners from June 2009.
Nature of Alliance: PEL was the distributor of LG. PEL and LG

both are Electrical Appliances companies but they are not
competitors. Because PEL is targeting “B” class market while LG is targeting “A”
class market. LG and PEL both got benefits from technology blend.
Present Status:
The strategic alliance between PEL and LG is now ended. PEL is distributing the LG products which
are already in stores. LG now has a new distributor i.e. New Allied Electronics. One major reason
behind this PEL is facing financial problems due to which this alliance cannot be continued.
CERTIFICATIONS OF PEL:
MISO 9001:2008 (Quality Management System Certification),
ISO 14001: 2004 (Environmental Management System Certification),
OHSAS 18001: 2007 (Health & Safety Management System Certification)
AWARDS WON BY PEL:

Annual Environment Excellence Award-2009
Annual Environment Excellence Awards are instituted jointly by National

Forumfor Environment and Health (NFEH), United Nations Environment Program (UNEP), Ministry
of Environment, Government of Pakistan and the Federation of Pakistan Chambers of Commerce &
Industry (FPCCI). Annual Environment Excellence Awards are designed to recognize and promote
the organizations which make an outstanding contribution to sustainable development. They aim to
highlight policies, practices, processes and products from all sectors of business in the country,
which help to achieve economic and social development without detriment to the environment and
natural resources.
Pak Elektron Limited (PEL) was awarded 6th Annual Environment Excellence Award for best Health,
Safety and Environment performance. The Award was presented to Pak Elektron Limited in a
graceful ceremony; held on July 09, 2009at Hotel Sheraton, Karachi. Mr. Hameed Ullah Jan Afridi,
Federal Minister for Environment, honored the ceremony by as chief guest whereas Mr. Askri Taqvi,
Minister for Environment, Sindh presided over. Javed jabber (Global Vice-president IUCN), Dr.
Kaiser Waheed (Chairman NFEH) and Naeem Qureshi (President NFEH) were also present on the
occasion. Mr. Yaqub Tabasum (Project Manager Unit-II) received the Environment Excellence Award
on behalf of PEL.
Health & Environment National Excellence Award-2008
On the basis of sound Health, Safety & Environmental performance; PEL was selected for 4th Health
& Environmental National Excellence Award-2008. These awards are offered by Help
International Welfare Trust, Pakistan in collaboration with Corporate Social Responsibility (CSR)
Association of Pakistan. The award presentation ceremony was held at Hotel Regent Plaza, Karachi
on April 15, 2009. Mr. Askari Taqvi, Minister for Environment, Government of Sindh was

Chief Guest of the ceremony and Ms. Khadija Balkhi, President of CSR Association of Pakistan was
the Guest of Honor at the occasion.
Best Environmental Reporting Award
Pak Elektron Limited (PEL) was awarded the Best Environmental Reporting
Award for 2008 at the 7th ACCA-WWF Pakistan Environmental Reporting Awards (PERA) ceremony
held on Earth Day; April 22, 2009 at the Serena Hotel, Islamabad.
Endorsed by the Ministry of Environment and IUCN Pakistan; these
Environmental Awards were launched in 2002 to recognize and reward
companies that report corporate environmental, social and sustainability performance to a broad
range of stakeholders.

PEL CULTURE
In PEL company quality is the subject of management at all levels. They focus on continuous
improvement in their systems thus establishing good management practices, they are committed
to and making continuous efforts in developing and strengthening their internal and external
customers and suppliers. Employees training & development and their participation are the key
forces which are increasing PEL organizations capabilities thus making it more competitive and fast
growing Company.
Top management is not only tremendously improving working environment but also investing in
improving internal communication network for better teamwork. Continuous Up-gradation in
production facility/equipment in the pursuit of state-of-the-art production technology reflects
management vision and commitment for quality. Over fifty years of manufacturing experience with
cooperative and dedicated employees coupled with performance based system and data analysis
enable management to take preventive actions before things really go wrong.
One of the mission of organization to promote good governance and corporate values with a strong
sense of social responsibility

.

PEL PROFILE
Pak Elektron Limited is the Public Limited Company. It is registered with Stock Exchange Market.
The share price of PEL is Rs.29.7 as of 16 Sep 2014.
Chairman : Naseem Saigol Key Company Data
CEO Name: Naseem Saigol Face Value
CEO Cost: NA 10
Group: Saigol Year Of Listing
Industry: Engineering-Elec. a 1988
Address: Lahore Year Ending
Employees: 5656 JUN
Telephone: 042-35718274 Web Site
Auditor: Rehman Sarfraz Ra

www.pel.com.pk
Last Closing
73.84
Last Updated
08/16/2016
PEL is the pioneer manufacturer of electrical goods in Pakistan. Since its commencement, the
company has always been contributing towards the advancement and development of the
engineering sector in Pakistan by introducing a range of quality electrical equipment and home
appliances and by producing hundreds of engineers, skilled workers and technicians through its
apprenticeship schemes and training programs. For this purpose, the Company is thriving hard
to achieve the following in addition to other measures:

 Detailed customer knowledge and support
 Large-scale integration
 Lean design and manufacture
 Good governance
1. Appliances Division
2. Power Division
Share of revenue from Power and Appliances divisions has reached to equal proportion which
gives your Company a great balance in terms of diversity. We have more latitude, therefore, in
deploying people from one sector to another according to business cycle changes. Moreover,
with the extraordinary array of capabilities and talents that exists inside our Company, we will
be able to respond quickly and decisively to opportunities, whenever and wherever they may
exist.
Nature of Organization
Pak Elektron Limited (PEL) falls in the category of consumer durables. This category in the past
was considered as luxury goods. People used to think it like this because the per capita income
was low. Most people used to
buy washing machines and
deep freezers to show them off
but with technological
advancement, knowledge and
increase in disposable wealth
now the deep freezer has
become the necessity of every
house whether it is small or
large.

MAIN CLIENTS
In home appliances the company sells its products through dealers’ network of 1651 covering
271 cities and towns across Pakistan managed through 25 Area Sales Offices.
In Power Appliances PEL is one of the major electrical equipment suppliers to Water and Power
Development Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC) which are
largest power suppliers in Pakistan.
ROLE OF PEL IN INDUSTRY

PEL is market leader in Air conditioners throughout Pakistan. Due to the better quality of its A/C the
brand loyalty is high. It has introduced different new models to attract the customers. General is
No.2 in market.
In refrigerator PEL is 2nd in the Market in respect of sales while Dawlance is number 1. PEL is
striving to become No.1 in next 3 to 4 years by introducing new Models and modifications in their
products. The market for refrigerator is growing while for Air-conditioner it is stagnant.
PEL is the first company to introduce the 3S concept in home appliances in Pakistan. Now you can
avail our unique sales, service and spares facilities all under one roof. With a dealership network all
over Pakistan, PEL gives you unmatched after sales support, making every PEL appliance a value

packed addition to your home. So whenever you buy from PEL, you can be sure of getting more
than what you paid for.
PEL introduces for the first time in Pakistan, the complete range of PEL Energy Savers. Each model
has been designed with different room sizes in mind and gives you unprecedented savings on your
electricity bill. Take control of your electricity bill with PEL Energy Saver.
There is very intense competition in the home appliance industry. The companies in the industry
are trying to capture the market by aggressive advertisement new product launching, bringing
innovative features in existing products.
The active companies in this industry are:
 PEL
 LG
 Dawlance
 Waves
 General

CHRONOLOGY OF PRODUCTS
1956 Incorporation of Pak Elektron Limited
1958 Start of Commercial Production
Distribution Transformers and Switch
Gears in Technical Collaboration with AEG Germany
1978 PEL Acquired by Saigol Group of companies
1981 Manufacturing of Air Conditioners with assistance of Fujitsu,

Japan
1987 Manufacturing of Refrigerators & Deep Freezers in Technical

Collaboration with IAR-SILTAL & ARISTON of Italy
1988  Listing with all of Stock Exchanges
 Acquired License to manufacture VCB’s from Hitachi,
Japan
1992 Started Production of Energy Meters under the License from
ABB USA
1994 Quality Management System Certification for Energy Meter
ISO 9001 by SGS
1997 Acquired technology from Carrier USA to manufacture
window A/C
2000 Launching of new crystal series refrigerator under technical

collaboration of Danfoss, Germany
2004 Acquired Technology from GANZ, Hungry to Produce Power
Transformers
2006 Formal start of EPC Business Segment of the Company

2007 Power Transformer Qualification of 132 – KV Power
Transformer for WAPDA & KESC
2009 Distribution Agreement Signed with LG for the sole

distribution of LG’s home appliances
 4th CSR National Excellence

 Award 6th Annual Environmental
 Excellence
 Award Export of Power Transformer
2010 Acquired Licensing Agreement from General Electric (GE),
USA to manufacture LV Switchgear
Inauguration of New Distribution Transformer Factory by

Prime Minister of Pakistan under Technical Assistance from
Pauwels, Belgium
2012 Launch of new Arctic series Refrigerator with new Aesthetics
2013 Successful Commissioning of 220 KV GIS Shalimar Grid
Station worth 1.3 Billion Rs.
2014 Launching of New Glass Door Refrigerator with New
Aesthetics

SHAREHOLDING STRUCTURE
Classification of PEL’s shareholding structure is given below
Categories of Shareholders No of Share Share held Percentage

Holders
Directors, Chief Executive Officer, and 9 157,789,205 58.8521%

their spouse and minor children
Associated Companies, undertakings and 1 9,671,653 3.6073%

related party
NIT and ICP 2 2,213 0.0008%
Banks Development Financial Institutions

Non-Banking
Financial Institution 9 23,646,035 8.8195%

Insurance Companies 2 3,091,104 1.1529%
Modarabas and Mutual Funds 1 3,050,000 1.1376%
General Public 3,693 64,468,307 24.0454%
Others (to be specified)
Pension Funds 1 673,589 0.2512%

Other Companies 5 786,155 0.2932%
Joint Stock Companies 79 4,898,087 1.8269%
Foreign Companies 17 34,891 0.0130%
3819 268,111,239 100.0000%

SHAREHOLDING PATTERN
Classification of PEL shareholding pattern is as below
Shareholding Patterns
Directors & Exectuive
2% Associated Co's
24%
Banks
Insurance Co's
1%
1%
59% Mutual Funds
9%
4% Generl Public
Others

List of associated companies
 Kohinoor Energy Limited
 Kohinoor Industries Limited
 Azam Textile Mills Limited
 Saritow Spinning Mills Limited
 Kohinoor Power Company Limited
 Saigols Brothers Limited
 Guarantee Life Employment Limited
 Saritow (Pakistan) Limited
 Kohinoor Tractors (Private) Limited
 Con-force (Private) Limited
 Kohinoor Autos (Private) Limited
 Progressive Industries (Lahore) (Private) Limited
 Art Centre (Private) Limited
 Kohinoor Airwaves (Private) Limited
 PEL Marketing Private Limited

COPMANY OVERVIEW.
Business Overview-APPLIANCES DIVISION

This division is involved in manufacturing and assembling of Refrigerators, Deep freezers, Split Air
Conditioners and Microwave ovens for local and export sales. This division is country leaders when
it comes to performance and reliability. PEL brand is gaining ground based on our technological
edge over competitors and wide sales & after sales service network. This network comprises of over
1500 dealers spread all over the country, 268 after sale service workshops, 17 regional sales offices
supported by 12 regional ware houses. Company has continued its focus on sales & distribution
activities, customer focused product development and effective marketing and trade promotion
techniques during the year. These activities are briefly discussed in the following paragraphs.
PEL Daewoo Electronics Ltd - Agreement for conversion of Sony Television at the plant was
concluded and PEL has started production of their products since May 1999. Under
thisarrangement television kits are supplied to us by Sony and convertedtelevisions are delivered to
them and marketed through their own network. The US$ denominated conversion price for the
televisions assembled by us is charged on fortnightly basis.
Tariff structure on Televisions has been rationalized in the federal budget for2001-2002 and as a
result violability of locally assembled televisions has considerably improved. Sony intends to take
full advantage of this situation and volumes of locally assembled televisions are resultantly
expected to increase manifolds. Agreement for conversion of VEGA flat screen television has also
concluded and we have very successfully started its production in September 2000
PEL Refrigerators - PEL Started Refrigerator Manufacturing in Year 1987 with the technical
assistance of IAR-SILTAL Italy. Its cooling Performance is tested and approved by Danfoss Germany
while the manufacturing Facility is ISO 9002 Certified from SGS Switzerland. The market demand
remained buoyant during the year despite acute load shedding and high rate of inflation.
Refrigerators have become a necessity for meeting the basic storage requirement for the
preservation of edibles in addition to the cooling of water and producing ice. With the rise of rural
prosperity, the demand for refrigerators in rural areas is surging. The Company has launched a new
refrigerator range called ASPIRE. This is an affordable priced contemporary styled refrigerator .We
have Run a 360 degree campaign.

PEL Deep Freezers - PEL Deep Freezers were introduced in 1987 in technical collaboration with
ARISTON Italy. Due to durability and high quality, PEL Deep Freezers are preferred choice of
corporate Institutions like Unilever and Engro. PEL Ice Cream Cabinets are best choices of “Walls”
and “Omore” Ice Cream Products. In addition superior quality and prompt after sales service has
also helped to maintain and develop stronger relation with PEL corporate customers .Proof of
concept is that we are getting repeat orders and adding new variants for our valued customers like
Unilever (Walls), Engro Foods (Omore) & Pakistan Dairies (Igloo) etc.
PEL Microwave Ovens - PEL Electrical Home Appliances have always been well received in Market.
To have competitive Product range PEL Launched Microwave Oven with PEL Brand and Warranty
which is well accepted by the large audience. The Company has restarted microwave oven in
current year, this will increase company’s Profitability and give dealers complete range of home
appliances to sell.
Business overview - POWER DIVISION:

This division is involved in building power transmission and distribution infrastructure in the
country and abroad. Division activities include manufacturing of electrical equipment such as
Distribution Transformers, Power Transformers, Energy Meters, Switch Gears and carrying out
Turnkey Contracts involving Engineering, Procurement and Commissioning (EPC) of electrical
networks and grid stations up to 220 KV level. These activities are briefly discussed in the following
paragraphs
EPC Contracting - With restructuring of power sector in Pakistan and increase in economic,
commercial and industrial activity, more and more power utilities and other customers demanded
high value packaged solutions for their transmission system and enterprise electrification
requirements. To meet this demand PEL established an Engineering Procurement and Construction
division. PEL EPC Division consists of human resource with high academic qualifications and
experience of local as well as global market.
The Power Division consist of three main Products:
 Distribution, Power and Dry Type Transformers.

 Energy Meters
 Switch Gears

 EPC Contracting
 Transformer Services
Power Transformers - Extensive experience and success in manufacturing distribution transformers

led to the establishment of power transformer division in 2005. Since its birth the division has
produced transformers of ratings 31/40MVA, 20/26MVA, and 10/13MVA for ratings up to 132 KV.
In order to provide its customers the best of technology and products of international competence,
PEL has combined its technical expertise with GANZ, a renowned and experienced Hungarian
transformer manufacturer.
Strength is ensured by stiffeners. Earthling terminals are attached to both sides of tank. Measuring
Instruments are installed on cover plate. Surface protection is done by the process of sand blasting
and by applying weather resistant paint.
Distribution Transformers - PEL made distribution transformers’ range includes oil immersed core
type transformers, Dry type (VP impregnated) transformers and autotransformers. These
transformers are tailor made for various ratings. IEC or national standards are followed. We offer
distribution transformers voltage up to 33 kV and ratings up to 30 MVA.PEL offers transformer
tanks with corrugated walls, detachable radiators and tubular arrangement. PEL transformers are
available for various applications:
 Distribution Transformers (Pole /Pad Mounted)

 Auto Transformers
 Furnace Transformers
 Welding Transformers
 Chokes for furnace Transformers
 Any other special requirement
Dry Type Transformer Introduction
The demand of electricity in Pakistan has been increasing rapidly in the last few years. There is a
mushroom growth in the high rise buildings, shopping areas, CNG and petrol stations, residential
colonies, etc. Due to the scarcity of space in cities, installation of conventional oil type transformers
in such congested and populated areas is always a big safety risk. The developed as well as many

developing countries are installing dry type transformers as a solution for ensuring safety in such
scenarios.
Types of Dry Type Transformers - There are primarily two main manufacturing techniques for dry
type transformers; Cast Resin and Vacuum Pressure Impregnated (VPI) with their own typical
features. The main difference is their insulation class; Cast Resin is Class F (155°C) and VPI is Class H
(180°C). The Vacuum Pressure Impregnated transformers not only offers in-build safety feature but
there are many other advantages of using these transformers such as improved reliability, reduced
losses, minimal maintenance, enhanced overloading capability etc.
Energy Meters - Following types of meters are manufactured:
 Electro mechanical
 Single phase
 Three phase_ Direct connected
 Three phase _CT operated
 Static/Digital
 Single Phase
 Three Phase Directed connected
 Three Phase CT operated
 Three Phase TOU
PEL manufactures three types of energy meters; Single Phase and Poly Phase. The electro-
mechanical energy meters are manufactured under license from ABB of USA. The quality of PEL
meters has been certified by KEMA Laboratories of Holland. PEL meters are superior to others due
to their ability to lower revenue losses through accurate& precise operation and reduction of
maintenance expenses. Single Phase energy meters provide maintenance-free operations over a
long period and accurate measurement of electrical energy. Poly Phase energy meters improve
load performance and precision accuracy. The meters require minimum maintenance and can
withstand abuse from surges and magnetic tampering. Three phase digital electronic meter with

dual tariff capability recently launched and supplies to WAPDA has begun this year. Energy meter
orders from WAPDA are received annually and their supply period is 9 -10months.
Switchgears - Switchgears are one of the highly technical and specialized power products of PEL.
They are produced for indoor and outdoor installations complying with international installation
standards. A major customer for this product is WAPDA. The Company provides one year after sales
MARKET SHARE: SWITCHGEAR

Others
12%
PEL
33%
Alstom
25%
Siemens
30%
service warranty to WAPDA, KESC and other customers. In Switchgear, PEL enjoys market share of
33 % while competitors are Alstom, Siemen sand Fico.

 Waves
 L.G
Refrigerator Competitors of PEL:
 Dawlance
 Samsung
 L.G.
 Waves
Future Outlook
Board is optimistic with respect to emerging economic scenario which includes appreciating rupee
against foreign currencies particularly against US dollar, improving central bank reserves, improving
foreign remittances, expected increase in FDI, government launched initiatives to curb load shedding,
efforts for restoration of peace in the country etc. At the same time menace for soaring inflation,
apprehensions on sustainability in stable rupee exchange rates, increasing energy costs and other
inputs which may result into rise in interest rates is also to be watched out in the near future. These
factors may increase the cost of doing business.
 The company has a vital role to play in building infrastructure for transmission and
distribution commensurate to the increased power generation capacity, the government is
presently striving for. In the macro perspective, rural prosperity along with the increasing
foreign remittances is enhancing reasonable purchase power for the consumer industry.
 In addition export markets such as Afghanistan, Africa, and Middle East etc are also opening
up and they are finding that reasonable export potential is emerging.
 PEL is committed to improve technologically our product range in order to match the global
standards through consistent R & D.

PART TWO
COMPANY MANAGEMENT
ORGANIZATIONAL CHART
Pak Elektron Limited is very old organization and has grown and now it is pursuing job specialization
policy and is divided into different departments like finance, marketing, production, customer
service departments etc. The total executives and employees are around 800 whereas workers are
4700
CEO
Managing
Director
GM GM GM Marketing
Manufacturing GM Marketing Manufacturing
GM Finance (Appliances
(Power (Power (Appliances Division)
Division) Division) Division)
Sr Manager
Marketing
Sr Manager
Sr Manager
(Foreign Finance Sr. Manager
Procurement) Appliance
Manager
Commercial Sr Manager
HR&D
Organizational Centralization
In PEL decision making or centralization of power is kept at the top level. The important decision
like establishing goals, hiring employees, choosing contracts are made at the top level, therefore in
PEL Centralization is “High”. CEO is the main controller of the whole organization. Heads of all
departments directly reports to CEO. These people are mainly involved in policy creation of the
company. All the major operations of the company go under the review of these departmental
heads.

ORGANIZATIONAL CHART OF PEL
Murad Saigol
CEO
Arif Rashid Mir

GM IR&A
House
Admin Unit1 IR Gate Office Civil Works Security Reclamation Admin Unit2
keeping
Sr Admin
Executive
Sr Security
Admin Team Lead IR Asst.
Engineer Supervisior
Executive Manager Civil
Labor office
Gate
Asst.
Sr IR & A Incharge
Manager
Asst. Executive
Admin Asst. Admin
Engineer
Sr Designer Officer
IR&A
Executive Assitant
Engineer
IR Executive
Asst.
Engineer
Transport
Admin Suppervisior Gate Officer
Officer
Board of Directors
Mr. M. Naseem Saigol Chairman - Executive
Mr. M. Murad Saigol Chief Executive - Executive/Certified (DTP)
Mr. M. Azam Saigol Director - Non Executive
Mr. Muhammad Zeid Yousuf Saigol Director - Executive/Certified (DTP)
Mr. Haroon Ahmad Khan Director - Executive/Certified (DTP)
Syed Manzar Hassan Director - Executive
Syed Zubair Ahmad Shah Director - NIT Nominee/Independent
Mr. Wajahat A. Baqai Director - NBP Nominee U/S 182 of the Ordinance/Non
Executive
Mr. Akbar Hassan Khan Director - NBP Nominee U/S 182 of the Ordinance/Non
Executive
Mr. Khadim Hussain Director - NBP Nominee U/S 182 of the Ordinance/Non
Executive
Mr. Khalid Siddiq Tirmizey Director - BOP Nominee U/S 182 of the Ordinance/Non
Executive
Mr. Munaf Ibrahim Director - Independent
Audit Committee
Mr. Azam Saigol Chairman/Member
Mr. Wajahat A. Baqai Member
Syed Zubair Ahmad Shah Member
Mr. Haroon Ahmad Khan Member
HR & Remuneration Committee

Mr. M. Azam Saigol Chairman/Member
Mr. Haroon Ahmad Khan Member
Syed Zubair Ahmad Shah Member
Syed Manzar Hassan Member
Company Secretary
Mr. M. Omar Farooq
Chief Financial Officer
Syed Manzar Hasan FCA
Auditors
M/s Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants
Legal Advisors
M/s Hassan & Hassan Advocates
RESPONSIBILITIES OF MANAGEMENT
Board of Directors
All decisions regarding:
 New investments.
 New borrowings.
 Approval of annual/ half yearly/ quarterly accounts/ dividend/ bonus etc.
 All management and operational decisions.
1. Chief Executive
Overall controlling of the operations.
2. Executive Director

To manage all the business activities of the company.
3. Company Secretary
To manage all secretarial jobs as required by the companies ordinance.
4. Technical Directors
To manage the operational activities of the company.
To improve the quality/standard of the products.
To suggest the modernization/expansion plans
5. Director Finance
To manage the all-financial matters of the company.
To manage/improve the management information system.
To manage the accounting, costing, taxation, auditing and all other related matters.
6. General Manager Purchase
To manage the local purchases and imports of the company.
7. General Managers/ Managers Accounts
To manage the monthly, quarterly, half quarterly and annual accounts of the company.
8. Managers Taxation
To manage all the matters related to taxation.
9. General Manager Administration
To manage the personal and the administration matters of the company.

MAJOR MANAGERIAL POLICIES AND POLICY FORMULATION
Review of the company’s policies, procedures and performance on periodic basis is very much
important to keep the company on track. At PEL, policies are made and reviewed at top level by
keeping in mind Vision, Mission and objectives of the company. After defining goals and policies at
top level, each department is directed to develop their objectives and policies to support overall
objectives and policies. Employees at operational level are also encouraged to put their views and
opinions for the purpose to develop the effective and efficient goals and policies at departmental
level. This helps in proper implementation of formulated policies
FREQUENCY OF MEETINGS
PEL has very effective schedule of meetings to review the performance.
Annual Meeting
PEL annual meeting consist of Board of directors only in which they discuss previous year activities
and then according to the performance set the goals for the next year.
Quarterly Meeting:
At PEL review meeting is conducted once in every 3 months. Quorum of meeting consists of
directors and general managers only. At Head Office director while at factory sites concerned
general manager conduct the meeting.
Daily Meeting:
There is daily meeting in the departments to keep an eye on the work done by the employees to
discuss and solve the problems employees faced to accomplish their tasks.

EMPLOYEE RECORD KEEPING PROCESS:
For employee record what PEL do is firstly they make the candidate fill employee information form
then there updated resume is taken along with their educational verified records. All these
documents are then filed in a new filler and this file is given a unique P number. Every employee
that is hired has its own unique P number by which he is recognized and sought in records.
Each file of employee is maintained and HR and IR&A continuously keep on updating their
employee records as when there is a change is needed e.g. a person gets a training, his profile is
updated by adding that training to its skills inventory .
Besides maintaining files PEL has its data maintained in their own database management system
named Employee Management System (EMS). In this database all data regarding each and every
employee is maintained right from his date of joining to its personal information along with his
experiences, certifications, blood group, religion, marital status, CNIC, latest picture, e-mail address
and all necessary data is maintained.
All employees make use of EMS throughout PEl but each employee has limited access to it
according to its grade and usage. This access is controlled by IR department. This limitations are to
ensure security of data.
Each employee has its own specific login and password to login his system so that data of
organization can’t be misused and privacy of every employee keeps intact.
EMPLOYEES IN VARIOUS SECTION
Executive Managers Workers

CEO
600 200 4700
PEL being a majorly production related organization having massive production plants has 4700
workers currently, whereas the executives and managers are 800 in number.

DESIGNATIONS
The grades in PEL are as follows
M – 6 = MD = Managing Director
M – 5 = GM & Director
M – 4 = Senior Manager
M – 2 & 3 = Manager
M – 1 = Assistant Manager
E – 1 = Senior Executive
E – 2 & 3 = Executive
JE = Junior Executive
S – 1 = Senior Supervisor
S – 2 & 3 = Supervisor
C – 1 = Clerk (Clerical 1)
NG = Non Group (Worker)
 All the issues of the employees that are lying above S – 1 rank will be forwarded to the HR
Department.
 IR&A department is also responsible for internships and diploma

M6
M5
M4
M3 & 2
M1
E3
E2
E1
JE
S1
S3 & 2
C1
NG

JOB DESCRIPTION, QUALIFICATION AND MATCHING BENEFITS
Whenever a new job in introduced it could be of 3 types
 Seasonal
 Replacement
 New vacancy
Seasonal are the temporarily hired employees, as the name suggests these are hired with the
seasonal demand or according to the need of the project for a limited period of time.
Replacement are done when an employee leaves and there is a vacant post and vacancy is created,
there a person is hired and its mentioned that in the recruitment form that it’s a replacement to
that person on the very post
New vacancy is created only by the orders of HOD according to the need of the project by
additional budget arranged
As when the new vacancy is created the need for JD arises. HOD is the person who will be asked for
what purpose new person would be hired and what will be his responsibilities, he would describe it
in detail and would explain why he needs to have these tasks to be done by a new person. When
HOD justifies the need for a new hiring it goes to the GM of related filed and he passes the order
for new hiring.
According to that job description for new hiring will be designed, according to the tasks he is to
perform his qualification, experience, and expertise will be decided. Benefits would be according to
the grade of that position and it will be done by the executive level employee

CAREER LADDER
PEL offers excellent career progression with attractive remuneration package with a wide range of
fringe benefits.
Zonal
Area Sales
Sales Officer
Manager
Officer
Executive

JOB ASSESSMENT CRITERIA
Job assessment of a sales manager is done on the basis of his designation and job description and
varies from officer to officer. But for the sake of understanding following is the job assessment
criteria for Area Sales Manager:
 Visits to customers against an agreed plan and monitoring Business Development Executive's
/Sales Coordinator's performance ensuring month wise/ annual targets for sales and
collections are met as per company policy.
 Responsibility for a month wise / model wise/ color wise/dealer wise product wise sales plan
for a given year and degree of insurance of implementation through BDE/Sales Coordinators
along with a collection plan made month wise and its implementation as per company policy.
 Responsibility to explore/ identify new customers.
 Extent of exploring new customer's for network expansion and scrutinizing in detail new
applicant for credit worthiness.
 Provision of proper feedback to head office on markets / competitors activities on monthly

basis.
 Forecasting quantities / model mix (All products)
 Responsibility for office administration and monitor expenses against variable cost budgeted.

MAJOR MANAGERIAL POLICIES, PRACTICIES
Management style in PEL is bureaucratic. Policy formulation is done by top management at the
strategic level on the basis of need identification of each department individually.
PEL’S DEPARTMETNS AND THEIR POLICIES

Head Office
PEL head office Lahore consists of following departments;
 Chairman Secretariat
Chairman Secretariat is headed by the chairman/chief executive officer. The Chairman has his
personal staff comprising of a Director Staff, Protocol Officer, Private Secretary, Personal Assistant,
who are responsible to assist the Chairman in all the matters. Normally he visits and takes key
decision about their company matters.
 MD office
Managing Director is one of the key post in any organization, its jobs includes various
administrative jobs this person actually developing polices and implement them.
 IR & Admin
Industrial Relations (IR) is an area where a person deals with labor, laws, statutory. Here this
department deals with administration, workers and S1 (S1=supervisors)
 Human Resource
This department deals executives appraisals, their training, hiring and firing. They traditionally have
been referred as personal management or administration.
 Gate & Security office
As, Security gate officers, also known as security guards, patrol and protect property from theft,
invasion, fire and illegal activity. Here PEL give very much restrict and have high security system.
 Dispensary
This department is established to handle emergency medical treatment of PEL personals and works.
There are trained medical officer who can provided first aid in case of emergency. They also

conduct seminar time to time and tell workers and engineers about the safety measurement and
how to prevent from accidents.
 Telephone Exchange
This department controls all telephone calls within the organization and outside the organization
too. This is very good exchange system.
 Carrier
PEL collaborate with a company named ‘carrier’. It is very famous foreign company deals in air
conditioner. This department is connected with them and deals all issues related to their project.
 Marketing (AD & PD)
In this department all the sales and marketing campaign are designed, marketing research is
conducted, and competitors’ information is also studied to make their plans according to them.
They are working very hard to make their brand name famous.
 Power Projects
This department deals all projects related to power. They have good relation with Wapda and other
companies.
 Internal Audits
This department internally audits all accounts in PEL. The company internal auditors try to find out
faults, fraud and corruption and inspect that workers and company are following IFRS or not.
 Commercial
This department deals all issues related to Excise, Taxes & duties, etc. Moreover it also looks after
bounded ware house. As most of raw material they purchases is from abroad. So commercial
department controls all issues related to excise, duties and taxes.
 QHSE
This department focuses on Quality, Health, Safety, and Environment. This department works very
efficiently and makes PEL culture friendly.
 CMD

It is department, where they offer loans to their employees and selected government peoples. They
also give appliance products at factory rate to their employees.
 Finance
This department, develop financials for their executives. Annual report for company is also
developed by this department.
 Accounts
This department manages all accounts. i.e., Accounts payables, Account receivable, inventory, pay
roll, etc.
 Information Technology
This era is of IT, without giving importance to IT no organization can succeed. They are working very
hard to improve al system. After updating ‘MIS’ system, “Oracle” they become more efficient and
effective.
 Buying
Buying is one of the most important department, it purchase all raw material which is used in
production process.
 Stores
This is very important department all the purchase items firstly go to store department from their
other department issue it.
 Civil
They deal the maintenance of machinery and factory maintenance.
 Manufacturing (PD & AD)
All the manufacturing concerns aspects are controlled by this department.
 Maintenance
The main purpose of this department is to ensure quality and maintenance of machinery.
 EMP

Energy Meter Power, is one of the mega project of PEL, where production of EMP is executed and
all matters related to it are control.
 Switch Gear
Switch Gear department is also like EMP department, where switch gear are produced and other
aspects related to it are solved and worked.
 CSD
It is department where they offer loans to employees and selected government servants.
 Imports
All imported materials are controlled by import department. They also have all knowledge about
their important importers and the products they imported.
 Exports
This department controls and deals all exports to other countries, i.e., Bangladesh, Afghanistan and
few other countries of Africa.
COMMON DEPARTMENTS:
1. HR & D
2. IR & A
3. Finance
4. IT
5. Accounts
6. Sales
7. Marketing and Sales:
 Marketing AD
 Marketing PD
 CMD
 CSD
8. Production Department:
 Production AD
 Production PD

PEL Company Structure:
HR department
IR & A department
Finance
department
Pak Elektron Limited
IT department
Accounts
department
Sales Department
Marketing
department
Production
Procurement
PEL’S is mainly consisted of nine departments i.e. Finance, Marketing, HR, Information technology,
Production, Procurement, Sales, Internal Relation and Administration and Accounts Department.
These departments play an important role in the success of, due to the fact that the coordination
between these departments is excellent
Human Resource Department

Human Resource Department is the most important and key department of every organization. It
not only deals with the employees of the organization but also help in management of the affairs of
the company.PEL has a full fledge HR Department known as HR&A or administrationdepartment
with the staff strength of 38 employees. The GM is the top executive in the HR department and
there is one manager of HR to facilitate the work of G.M. and 2 personnel and an admin officer.HR

Department’s activities are spread over the whole organization. The following areas come under
direct supervision of HR department at PEL.
 Hiring and right sizing of employees

 Training and development
 Compensation system
 Security and fire fighting
 Gate supervision
 Telephone exchange
 Fair price shops
 Canteen supervision
 Dispensary and health care
As the security in the company like PEL is very much important so there is 24-hour arrangement of
security by three shifts in charges headed by a security officer. He is also responsible for the
firefighting activities and for the placement and checking of all the firefighting equipment. For the
purpose of security and for the visitors there are two gates under the supervision of a supervisors
with two gate assistants who are responsible for all the in and out transport and movement
activities in the organization.
There is a telephone exchange in the organization having a facility of 13 lines. The organization is
providing the basic necessities to the workers e.g. flour, ghee, sugar etc. from the fair price shop at
very controlled price and quality. Because this is part of fringe benefits that are provided to the
employees. There is a fair price supervisor who is responsible for the purchase and distribution. PEL
is also providing the facility of mess to the workers and as well as officer. Mess is provided at very
nominal charges. Mess supervisor is responsible for the purchases and cooking. There is not a
particular hospital in PEL but there is a dispensary with two dispensers and one senior dispenser.
For the medical check-ups and for any detailed curves the employees are sent to social security
hospital.
Administration (IR & A)

Key responsibilities are:
 Maintenance of Attendance

 Maintenance of Stores
 Check the material in & out from the factory
 Maintenance of factory
 Provide assistance to all departments regarding material
Finance Department
Finance Management is the lifeblood of any industry. If this area of corporate
activities is improperly handled, a company may lead
insolvency despitehaving all the resources and opportunities. Therefore proper financial
management is vital for every business concern and PEL is not lacking behind over here. At PEL
finance department for both division (Appliance and Power) is
separatebut their procedure are same. To control both another departments called“Finance
Center” is established. Functions of finance are:
 Perform as a workstation and as an integrated circuit amongst alldepartment of the

company.
 Arrange monetary resources / funds at favorable prices and at proper time.
 Allocate resources / funds throughout the organization.
 Deal with banks, investment firms, government departments of Appliance and power
division calculate and keep employees’ salaries record.
 Carry out final auditing of financial records prepared by Accountsdepartment of Appliances
and power division.

Finance
Material
Pledge Gurantee Budgeting Treasury
Planning
Information Technology Department

IT department’s key responsibilities are as follows:
 Troubleshooting and problems facing in computers.

 Installing and deletion of software’s.
 Right protection and issuance.
 Developed and maintain internal network.
 Developed and maintain domain of each person.
 Create and enhance internal software’s running currently.
 Hardware and all software issues.
Accounts Department
 The Accounts Department looks after the financial matters. Accounts department for both
power and appliances division have similar functions as below. This particular department
has the responsibility to prepare and keep an up to date record of following:
 Financial keep of daily, including the income statement and balance sheet.
 Book keeping of daily monetary transactions.
 Production maintenance reports
 Cost data on labor, materials and overheads.

 Remittances and loans
 Expense reimbursement
 Tax statement
 Financial deals with the banks, leasing companies, modaraba companies, DFIs and other
government agencies through Finance Center.
 The finance department maintains record of all its expenses through vouchers.
Generally the following types of vouchers are used for this purpose.
 Cash payment vouchers for cash transactions recording.
 Purchase vouchers
 Bank payment vouchers
 Journal vouchers for general expenses.
Accounts
Department
Inventory Accounts
Cost Section Import Section Salary Section
Section Payable Section

All matters, starting from “Book keeping” to formulation of financial statements are
supervised by “Account manager”. Accounts manager directly reports to General finance
manager. He has divided his staff into five-section
I. Cost section
II. Import section
III. Inventory section
IV. Salary section
V. Accounts Payable section.
On the basis of these bookkeeping activities financial statements and relevantstatements are
prepared, which necessitate in decision making at corporate level
Functions
This particular department has the responsibility to prepare and keep an up-to-date record of
following:
 Financial keep of daily, including the income statement and balance sheet.
 Book keeping of daily monetary transactions.
 Production maintenance reports
 Cost data on labor, materials and overheads.
 Remittances and loans
 Expense reimbursement
 Tax statement
Financial deals with the banks, leasing companies, modarabacompanies, DFIs

and other government agencies through Finance Center
Sales Department
Sales Department at PEL is a very established, as this company is operating in the whole country
through its 25 company operated area sales offices. In Head office there are two divisions of sales
department one is corporate sales department and other is retail sales department. Almost 9
employees are working in corporate sales department.
Department Hierarchy

General Manager
Sales
National Sales
Manager
Zonal Sales
Manager
Reginonal Sales
Manger
Area Sales
Manager
Number of Employees
In sales department there are collectively 93 employees including NSM, RSMs, ASMs and SOs etc.

Job Description of Sales Manager

Qualification and Matching Benefits
Knowledge, skills and abilities required for the sales officer in sales department varies from
designation to designation in respective department. Usually the minimum requirement is masters’
degree. But for the ASM he following is the list of requirements:
 MBA (Marketing) with 5-6 years Exp. BA with 10-12 years, BBA (Marketing) with 7-8 years
Exp.
 MS Office
 Good understanding of Marketing concepts Conceptual skills
 Communication skills, team player, leadership skills
Benefits are given to the sales officers according to the completion of targets, set for the respective
officers.

Research and Development Department
 This is the most important department regarding the future of company as a market leader
this department is constantly in-touch with market to know about customer preferences
and specification for products.
 After thorough analysis of customer expectations this department then give its
recommendations to the top management to being changes in the product for market
success. This department conduct surveys in market to get information. This department is
also responsible for bringing new technologies in the products.
Consumer Marketing Department (CMD)

This department is basically under the marketing department. At the start this department did not
exist in the hierarchy but with the passage of time and with the success of easy installment scheme,
this department came into being. The reason is that in the start this department’s target market
was Lahore and its workforce had only 8 persons and now after 2 years of its establishment it has
covers major cities of Pakistan and it has workforce of 45 and they are recruiting more to cover
these areas fully. There are many regional offices in major cities for example in Multan,
Sahiwal,Karachi, Hyderabad, Faisalabad, Gujranwala, Hattar, Rawalpindi, Sialkot,Bahawalpur,
Sukker, Sargodha and AJK (Azad Jammu Kashmir) and the head-office is in the factory that is
Consumer Marketing Department. This scheme is well received so it’s now on expansion. This
scheme is only in
bigcities. The target market of this scheme is Government employees or theemployees of those co
mpanies, which have signed Memorandum of Understanding (MOU) with the bank who is
financing. Why so? It is because those Govt. offices make sure to the bank that their employee’s
salary will go to their hands after the deduction of installment of the bank and MOU also make sure
that employees who got financing will get salary after deduction of bank’s installment. Askari Bank
Limited is financing the PEL employees and Soneri Bank and Bank of Punjab to the others
employees of Govt. or company which has been signed MOU with the bank
Customer Service Department (CSD)

CSD is a customer service department under the
Marketing Head. Where theafter sale service is provided to satisfy customers having problem in the
ir appliances. PEL is well known for their customer care service.

Production Department
Production department’s key responsibility is to develop and create products that are required for
the specific department. They also receive a major plan for the whole financial year that indicates
the number and models of each brand and the deadline time for each lot. PEL’s production
department is comprised of different units according to the products.
Following are the names of production department:
 Refrigerators Production Department.

 Transformers And Switchgears Production Department
 Electricity Meters Production Department
Procurement Department
PEL has state of the art methods of production and they also outsource the products and raw
material not only from Pakistan but also from Asia, America, Europe, and Africa. So for this purpose
PEL has two different departments for procurement, which are:
 Local Procurement
 Foreign Procurement
 Local Procurement
Local Procurement department is responsible for all the raw materials that are required for
making various products in the factory. It includes from nails to large metal sheets. At the
start of each financial year they receive a major plan from the management, which
highlights all the raw material required for each product. Dates and maximum time limit for
raw material requirement is also mention in this major plan. Now procurement team makes
small benchmarks and milestones from the major raw material required plan in order to
ease them for remembering the required time limit and also reminds finance department to
arrange finance for such purchases.
 Foreign Procurement
Responsibilities and duties are same as Local procurement but they vary in the dimension
that, they have to arrange the raw material from abroad. They also receive same plan
as local procurement for the whole financial year and develop milestones to carry out the
plan execution properly. The skill of this department is to purchase the raw material in the

optimum costthat best satisfy the need of production department and also to finance
department in quality as well as in monetary terms respectively.

PART THREE
ADMINISTRATIVE/ MANAGEMENT STYLES

The Management style PEL employees follow is “bureaucratic”.
BUREAUCRATIC MANAGEMENT STYLE

Decision making is highly centralized & ideas from lower levels are not welcomed. So idea
generation is not facilitated & top executives are responsible for developing strategies for their own
SBUs. This sort of arrangements restricts innovative strategies & lower level participation in
decision making.
Span of Control
The organizational hierarchy of PEL represents both flat and tall spans of administration. In case of
the lower levels of the hierarchy (the workers and their supervisors) the span is wide but as the
level of administrators goes up, the span structure becomes tall and narrow.
The top position is held by the Managing Director who is answerable to the chairman of the board
of directors. General Managers report to the MD and are responsible for respective divisions, some
departments are being headed by Managers, some by Deputy Managers and others are being led
by Assistant managers, there are Senior Engineers and Engineers who are section in charges.
Supervisors and foremen report to them.
At worker's level, usually 10 to 30 workers report to a foreman. This means two or three task teams
are supervised but a foreman. Three to seven foremen report to a Section In charge who is an
engineer. At executive level three to five engineers report to a manager, and almost the same
number of manager’s reports to a General Manager. Whereas at top management level four
general managers’ report to the Managing Director
The organizational hierarchy of PEL represents both flat and tall spans of administration. In case of
the lower levels of the hierarchy (the workers and their supervisors) the span is wide but as the
level of administrators goes up, the span structure becomes tall and narrow.
The top position is held by the Managing Director who is answerable to the chairman of the board
of directors. General Managers report to the MD and are responsible for respective divisions, some
departments are being headed by Managers, some by Deputy Managers and others are being led

by Assistant managers, there are Senior Engineers and Engineers who are section in charges.
Supervisors and foremen report to them.
At worker's level, usually 10 to 30 workers report to a foreman. This means two or three task teams
are supervised but a foreman. Three to seven foremen report to a Section In charge who is an
engineer. At executive level three to five engineers report to a manager, and almost the same
number of managers’ reports to a General Manager. Whereas at top management level four
general managers’ report to the Managing Director.
Board of Directors
Managing Director
Four General Managers
Five Managers
Five Engineers(Section
Incharge)
Three to Four Foremen
Twenty to
Thirty Workers
Division of Labor:

In Pak Elektron Limited (PEL), two types of employees hired
•Permanent Workers
•Temporary Workers
Temporary workers are employed for about 6 months, and when the season concludes the
temporary workers are laid off. Temporary workers are employed as helpers and assigned those
jobs where skills are not required. Workers are divided into different teams based upon their skills
and nature of job. The team is led by head worker who is responsible for the work assigned to his
team and directs the fellow workers to perform the assigned task. These
teamsare masters of their jobs. With in a team, tasks have been assigned in a sequential order
and every individual is assigned a specific task. This activity not only helps productivity but also
helps the quality standards of the workers as each of them tries to keep an eye on the other to see
that he is performing correctly because if anything goes wrong, the blame goes to the whole group.
Number of workers varies in different teams depending upon the nature of jobs

Authority and Responsibility
Locus of authority lies with management position. Personnel administration is the responsibility Of
P&A department and hence recruitment and termination authority is also with them.
Section in-charges are also involved in worker's administration and therefore they are authorized to
recommend and reward incentive or punishment to the workers.
Final authority is with General Managers and Managing Director. Capital Expense Proposal and
budgets are approved by the top management prior to any major expense.
Two years back authority distribution was uneven and all powers were with General Managers. This
has caused serious problems in managing people. At the moment administration authorities have
been delegated to the front-line managers making the administration easier.
Authority generally lies with the position and not with the person. But human factor cannot be
ignored at all. Some executives and managers have acquired the popularity by obliging others and
behaving well, over the years, that whatever they say, nobody turns down their words. People
listen to them and are always ready to deliver their services and do not hesitate to go through
extended shifts. When these executives and managers assign some targets to people, these targets
are met within the given time frame. Many examples can be quoted where people go too far to
fulfill the order of some specific gentleman, in spite of the fact that he has no authority to do so. On
the contrary, there are people who have got authorities but nobody listens to them, but these
cases are rare.
In PAK ELEKTRON, authority has some levels in contrast with responsibility. Section in charges is
responsible to transfer raw material from store to the workshops and finished goods from
workshops to stores. When goods are being returned or the material being transferred outside the
factory, the authority is with the managers, whereas, non-returnable goods being transferred
outside the factory must have authorization from a General Manager. Likewise, in the case of
leaves and overtime, immediate supervisor is the authority.

THE CONTROL PROCESS

Controlling Functions at PEL
The controlling function adds the vital regulatory element besides the other functions of the
management. It allow mangers to make use of variety of methods for monitoring performance and
taking corrective action necessary control must be used flexibly, though, too much, control can
stifle innovation. In the organization, the controlling is done by the management as well as the
managers. The employees under a manager must under the control of the manager. Manager has
control over his employees. The control is not very flexible in the organization. The top
management has control over managers and the mangers have control over their employees. None
of the employees is allowed to be free during the work time and every employee has to be on its
specified work. If any of the employee creates disturbance or he did not do work properly, then the
manger first worn him and if he does not change his attitude, the manager then report to the top
management and the top management will take the final decision. The company has made the
performance standard for each of the employee and if he does not work according to that standard
then the company will take necessary steps after discussing with the manager to increase the
performance level of that employee. Thus in this way the controlling process is done in this
particular organization.

PART FOUR
PRODUCTION FACILITIES
Purpose
department is comprised of different units according to the products. Following are the names of
production department:
 Transformers And Power Transformers Production Department
 Switch Gear Production Department.
Energy Meters Production Department
Scope
This Procedure addresses the Production Planning of Transformer Plant, Power Transformer,
Switchgear Department and Energy Meter Plant.
Production Facility
Pak Elektron Limited (PEL) is a holding company of PEL Group. It also has one subsidiary company.
PEL has three production facilities in Pakistan. These are:
1. Lahore Factory
2. Gadoon Factory
3. Hattar factory
Lahore Factory
In Lahore Factory, Refrigerator, Transformers, Compressors, Energy Meters, Switchgears and

Induction motors are produced.
Gadoon Factory
Both “Carrier” window and split type air conditioners and deep freezers are being produced.

Hattar Factory
Color Televisions are produced there, now LCD is produced in this factory
PRODUCTION DEPARTMENT
department is comprised of different units according to the products.
Production Planning
Following is the process of production planning in PEL.
Support Plan
Improve Execute
Divisions
Production department has divided into two major divisions.
a) For Appliance Division
This division is responsible for Refrigerators, air conditioners, and deep freezer and ovens.
b) For Power Division
Power division is responsible for Transformers, Energy Meters, Switchgears and Induction motors .

Material Planning
Concerned Personnel Material Planning Section (MPS) prepares Material requirement Plan (MRP)
according to Monthly Production plan and sends MRP to Head Local Procurement and Head
Finance and follows up Local Procurement for timely supply of materials. MPS prepares Annual
Import plan and raises import indents for the imported items on quarterly or as per requirement
basis and sends them to Head Import Logistics after getting them approved by Head Production
(DTR). GM Manufacturing (T&M) and higher authorities (if necessary) and follows up with import
logistics for timely supply of materials.
Work orders of said sales plan are issued by Design Department in accordance with procedure ‘Use
and control of fabrication number/ information, material release and dispatch’.

PLANT CAPACITY AND ACTUAL PRODUCTION
PLANT CAPACITY AND ACTUAL PRODUCTION
Unit Annual Actual Capacity Actual Capacity

Production Production Utilization Production Utilization
Capacity FY 2013 FY 2013 FY 2012 FY 2012
POWER DIVISION
Transformers MVA 5,000 2,537 51% 3,967 79%
Switchgears Nos. 9000 8,021 89% 1,780 20%
Energy meters Nos. 1,700,000 277,732 16% 264,148 15.5%
APPLIANCES DIVISION
Air Conditioners Tonnes 90,000 1,720 1.9% 919 1.02%
Refrigerators /
Cfts. 5,000,000 3,306,428 66% 3,042,064 61%
Deep Freezers
Source: Company Information
Source: Company Information

The relatively lower utilization of appliance division capacity in the year 2013 is mainly attributed to
reduced demand caused by global economic slowdown, volatility in the commodity prices and
steep inflation. However with increasing stability in these drivers, demand is beginning to show a
positive trend.
Switch gear business segment of the company has already improved tremendously and compared
to utilization level of merely 20% in CY12, the CU level jumped to 89% in the following year, mainly
led by improved demand from local market including Wapda. Transformers business, one of the
main business divisions of PAEL, however, operated at low utilization level in CY13. Compared to
capacity utilization of 79% in CY12, the level dropped significantly in CY13 to merely 51%. It was
primarily on the back of decline in international tenders while local govt. also suspended some of
the orders due to election year.
However, transformers business is likely to exhibit sharp growth hereafter as the company has
successfully tapped new export avenues in the GCC region and has gained reputation for
manufacturing customized transformers. As the company is operating below its rated capacity, the
company has ample room to increase its production level.
On the appliances business division front, refrigerator’s CU levels improved to 66% in CY13 from
61% a year earlier. It was on the back of increase in market share due to improved marketing
strategies as the company is grabbing the consumers’ attentions and eating up its competitor’s
Dawlance market share, while exports to Bangladesh and India also supported the productions
levels to some extent.
Constraints in Production System of PEL

1. Lack of Product Range
2. Less Utilization Capacity
3. Financial Problems
1. Lack of Product Range:
PEL has introduced more products of consumer items but there are more needs to develop
new consumer items like PEL Washing Machines, Vacuum Cleaner and other items.
2. Less Utilization Capacity:

Due to lack of Finance a company cannot utilize all its resources on its full capacity. It
increases the cost of product per unit that decrease profit margin of each consumer item.
Sometimes company cannot allocate the resources according to requirements of production
Department.
3. Financial Problems:
Sometimes PEL faces the financial Problems because its stock are so much piled up in the
stores that Creates problem of Cash flow because the when the stocks are not sold and
production is in 24 Hours’ a day then company faces such problems.
Pak Elektron
Limited
Power Appliances
Division Division
Distribution Switch Refrigerator Microwav

Transformer Gear e Oven
Power Grid Air-Conditioner Washing Machine

Transform Station
Energy EPC Deep Freezer Water Dispenser
Meter
PLANNING AND PROCUREMENT DEPARTMENT

PEL has state of the art methods of production and they also outsource the products and raw material
not only from Pakistan but also from Asia, America, Europe, and Africa.
So for this purpose PEL has two different departments for procurement, which are:
 Local Procurement
 Foreign Procurement

Local Procurement
Local Procurement department is responsible for all the raw materials that are required for making
various products in the factory. It includes from nails to large metal sheets. At the start of each
financial year they receive a major plan from the management, which highlights all the raw material
required for each product. Dates and maximum time limit for raw material requirement is also
mention in this major plan.
Now procurement team makes small benchmarks and milestones from the major raw material
required plan in order to ease them for remembering the required time limit and also reminds finance
department to arrange finance for such purchases.
Foreign Procurement
Responsibilities and duties are same as Local procurement but they vary in the dimension that, they
have to arrange the raw material from abroad. They also receive same plan as local procurement for
the whole financial year and develop milestones to carry out the plan execution properly.
The skill of this department is to purchase the raw material in the optimum cost that best satisfy the
need of production department and also to finance department in quality as well as in monetary
terms respectively.
Functions
The basic function of this department is to provide required material of good quality in the right
quantity, at the right time at the right price from the right source.
First of all, the marketing department prepares “Annual Sale Plan” in this plan they specify the color,
size, model and quantity of product.
After preparing annual sale budget the marketing department sends this plan to the production
department. They prepare “Annual Sale Plan”. When they are preparing the annual production plan,
they consider available labor, machineries and available time. Then this annual plan sends to P&P
Department. In this department there are five sections. P&P section makes planning to provide the
required material from different sources which are:
 Import material from other countries

 Buy from local market
 Manufacturing by specialized vendor
In charge of planning and procurement department makes plans that how much parts are to be
imported from other countries, how much material are to be purchased from local market, how much
material are to be manufactured by specialized vendors and how much parts are to be manufactured
by PEL itself.
There are five sections in P&P.
1. Planning
2. Local buying
3. Vendor buying
4. Vendor development
5. Imports
PLACEMENT
Distribution Strategy
There is an increase in the dealers’ network base especially in smaller towns where our network base
is not that strong. Sub-area offices are developed in D.G. Khan, Gujrat and Quetta. In order to have a
better control over the market and eliminate the dealers bargaining power, which is mainly due to
high stock levels at the dealers end, a policy for improved stock maintenance at the area ware houses
is introduced i.e. increase in warehousing in areas, which will help in having a better control over the
market.
Transshipment
Transportation is an important logistic decision, which PEL has to make while transporting goods from
factories to warehouse and then to dealers. For refrigerators, the best mode of transportation is truck
within cities and between cities. The main reasons for using trucks are speed of transportation and
economy.

The goods are transported from the factories at Hatter and Gadoon Amazai to warehouses in Lahore
and Karachi. To facilitate the transportation system the country is divided into two zones. The
appliances for Punjab and N.W.F.P. are stored in the warehouse of Lahore while appliances for Sindh
and Baluchistan are stored in Karachi. The country distribution is as follows:
Zone Areas Include
Northern Zone Punjab and N.W.F.P.
Southern Zone Sindh and Baluchistan.
PEL makes annual contracts with different transportation companies. The products are insured so
that any damage during the traveling is borne by the insurance company. The annual contracts are
more economical then renting trucks when required. As dealers usually take PEL appliances on credit
so they have to bear the transportation cost but if the sales are on cash, as in case of some institutions
that contact PEL directly, the transportation cost is borne by PEL.
To deal with the dealer’s network throughout Pakistan, PEL has employed a large sales force. This
sales force is a link between dealers and PEL.
Dealers
There are about 1500 dealers dealing in PEL appliance. The Company has to look many different
aspects of a dealer before deciding to give him the dealer ship. The different criteria, which a dealer
has to fulfill, are:
 The dealer must have a good reputation in the market in which he is operating.
 Those dealers are preferred who do business on cash basis with the company. Even if they
take credit they must be financially strong enough to make the payment within one month.
 The dealer who gives a prominent shelf space to PEL appliance without much persuasion or
do not demand a high price for shelf place are preferred.
 Location of dealer's shops is another important factor. The place should be reachable by
customers and easily accessible by them such as Abid Market Lahore.
 The dealers must promote PEL appliances through point of purchase promotional material
provided by PEL at their shops. These materials should be displayed at prominent places.

At one hand if PEL demand such services from their dealers, they are offered many incentives for
their services too. PEL has offered many sales promotion schemes to the dealers, which will be
discussed in promotion section.
Placement of Order by Dealer
Every month each dealer is visited by the sales officer appointed in that area. That sales officer has
all the past record of that dealer regarding the quantity ordered by that dealer, payment made,
payment to be made etc. The sales officer then checks the number of appliances that are still unsold
and are at dealer's shop or store. If there is a need for an order to be placed the dealer fills a form
which describes in detail which appliance is required by the dealer in what quantity, which color and
model etc. The form is stamped by the sales officer and is sent to accounts department where the
invoice of the order is made. The quantity ordered along with the invoice is sent to the respective
dealer within twenty days.

PART FIVE
MARKETING DEPARTMENT AT PEL

In the marketing department the main work is to make pricing strategy and advertisement
strategies. In pricing, prices are controlled by analysis of their competitors. They controlled all the
prices by analyzing the competitor’s prices. Advertising budget is decided for the PEL advertisement
to compete with competitors and to increase their sales.
Marketing department is blend of following departments:
 CSD
 D&C
 Dispatch
Customer Service Department (CSD)
CSD is a customer service department under the Marketing Head. Where the after sale service is
provided to satisfy customers having problem in their appliances. PEL is well known for their
customer care service.
Credit Control Department (D&C)
D&C is a credit control department under the Marketing Head. A responsibility of this department
is to maintain record for all the credit transactions.
Dispatch
Dispatch is another department under the Marketing Head. In this department all the things are
maintained which are send out of the factory or to dealers.

Structure of Marketing Department
Marketing Department at PEL is well organized and well-structured the detail is as under:
Functions of Marketing AD
 Market over views; digging out market trends, information, analysis of competitor’s activities.
 Co-ordinates among departments i.e. Sales, CSD, Accounts, D & C, in house Advertising
Agency (RED).
 Deals with local, domestic, and nationwide media venders.
 Maintains the clients’ accounts according to deals.
 Makes sure the dispersion of information regarding particular department.
 Management of all promotional activities inside and outside of the organization.
 Looks after the affairs regarding Branding Decisions and media planning.

 Media planning includes; media budgeting, media selection, media buying, vender selection,
last year budget comparison with current year budget, etc.
 Preparation of daily sales & collection report for managers to get informed about current
activities that are being performed by department.
 Product planning, Market Planning, analysis, observations of current activities and take
corrective actions.
 Market research for exploring current trends, competitor’s activities, and industry updates,
consumer behavior, economical, socio-cultural, political, technological factors that are
shaping the current business environment.
 Dealing with technological, logistical and trading alliances for business growth, these alliances
are included Daewoo, Sanyo, AEG, and Carrier, Nishi compressor.
COMPANY MARKETING MIX

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand
or product in the market. The elements of a services marketing mix are sometimes called the seven
Ps: the four Ps of the marketing mix, plus three Ps of services: participants, physical evidence, and
process
PRODUCT /SERVICE MIX

 Appliances Division
 Power Division
Appliances Division:
The products in appliances division are.
 Air Conditioners
 Refrigerators
 Deep Freezers

 Microwave oven
Power division:
Power division consist of three main products.
 Transformers
 Energy meters
 Switch gears
Appliances Division
This Division of PEL consists of appliances manufacturing. PEL is among the Market Leaders in Home
Appliances Business with a very good Presence and Market Share since year 1987. The growing
demand is due to Product development through dedicated & continuous Research & Development
Numbers of employees in appliances division are shown below

Appliances
Division
Appliances Manufacturing Quality Assurance

3255 142
Consumer Marketing Distribution & credit

95 control
158
Consumer Service Buying

Department 23
292
Marketing
169

PEL Air Conditioners
PEL window type air conditioners were introduced in 1981 in technical collaboration with General
Corporation of Japan. Ever since their launch, PEL air conditioners have a leading position in the
market. PEL air conditioners cooling performance has been tested and approved by Copeland and
ITS USA. With the shift of user’s preference from window type to split type air conditioners, PEL has
started manufacturing split type air conditioners. The PEL is currently producing 8
models of split type air conditioners and currently 1 model of window type air conditioners.
The PEL also produces Floor standing Air conditioners and it is currently producing 3 models for it.
The PEL won the Winner of the Consumer Choice Award for its air conditioners.
Split AC Window AC Standing AC
PEL Refrigerator
The manufacturing of refrigerators started in 1986-87 in technical collaboration with M/s IAR-
SILTAL of Italy. Like the air conditioner, PEL's refrigerators are also in great demand. Today, PEL
Crystal has 30% market share. Its cooling performance is tested and approved by Danfoss, Germany
and its manufacturing facility is ISO 9002 certified by SGS Switzerland.
The Company has launched a new refrigerator range called ASPIRE. The Aspire range has been very
well received by customers across the country. With the Launch of the model we focused to catch
the attention of customers who look for better aesthetics and beauty in affordable prices with
simultaneously meet their requirement for robust cooling function
This is an affordable priced contemporary styled refrigerator.

PEL’s refrigerators are available in 6 series of different colors, models, prices, and capacities. The
series are as follow:
 Xpression Series
 Premier Series
 6-Series
 Deluxe Series
 Smart Series
 Mini Series
PEL Deep Freezers
PEL’s deep freezers were introduced in 1987 in technical collaboration with Ariston, Italy. Because
of durability and high quality, PEL deep freezers are the preferred choice of corporate institutions
like Unilever and Engro. PEL has been supplying ice cream cabinets for Walls Ice Creams. Building
on this deal, PEL has recently inked a similar agreement with Engro Foods Limited for the supply of
ice cream cabinets for their “Omore” Ice Cream product
PEL Washing Machines
PEL is currently producing two models of washing machines, catering to the needs of different
consumers.
PEL Water Dispensers
PEL is currently producing two categories of water dispensers and those are Silver line and Life
stream.

PEL Microwave Oven
PEL is currently producing two divisions of Microwave ovens. I.e. Silver line Ovens and Microwave
Ovens. And each division contains further models. PEL presents 26 different models of oven with
different prices, models and capacities.
The Company has restarted microwave oven in current year; this will increase company’s
Profitability and give dealers complete range of home appliances to sell
PEL Generators
PEL is currently producing two divisions of generators, Domestic Generators and Commercial
Generators. PEL is producing further four models in the category of Domestic generators
From long time Pakistan facing energy crisis, at that time introduction of PEL Generator is very
positive steps toward appliance sector to facilitate their customers. And they are working more to
increase their product line, produce quality products, and give value to their customers and
become market leader in home appliance.

Power Division
PEL was founded in 1956 and has since been serving the Power utilities, industries, individual
customers, housing and commercial projects by providing reliable, customized and cost effective
solutions. Backed by the innovative genius of Saigol Group, 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. Their 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. 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.
At the heart of company’s operations is its human resource. PEL invests heavily on professional
development, skill improvement and wellbeing of its human resource. Our employees are our most
valuable asset and we keep them very dear.
PEL’s power division manufactures distribution and power transformers, energy meters,
switchgears, and EPC Projects. All these electrical goods are manufactured under strict quality
control and in accordance with international standards.
Due to Pakistan’s prevailing energy crisis, the Company is faced with numerous opportunities. The
Company’s main focus in this sector is to enhance the quality. WAPDA and KESC are the Company’s
primary customers, purchasing majority of the sales from its power division. PEL has a market share
of approximately 42% in transformers, 34% in switchgears, and 35% in energy meters with Siemens
(Pakistan) Engineering Company Limited (“Siemens”) as their main competitor.
Over the years, PEL’s products have been used in numerous power projects within Pakistan and
now, they are being exported to Saudi Arabia. In addition, the Company has also diversified its
business through the development of grid stations. Over the years, PEL electrical equipment has
been used in numerous power projects of national importance within Pakistan.
In spite of stiff competition from emerging local and multinational brands, PEL Group's appliances
and electrical equipment have remained in the spotlight due to constant innovation. Strategic

partnership with multinationals of repute have enabled the PEL Group to incorporate new
technologies into existing product ranges, thus giving the Pakistani market access to innovative,
affordable and quality products.
Number of employees in power division are as follows
Power
Division
Buying Power Projects

19 39
Maintenance Switch Gear

135 429
Energy Meter Inspection & Quality Control

556 78
Transformer Design Marketing

19 38
Transformer Production
1447

EPC Contracting
PEL launched it Engineering, Procurement and Construction (EPC) business in 2004. This was
facilitated by a technical collaboration with Ganz (Hungary) who partnered with PEL at the launch.
With restructuring of power sector in Pakistan and increase in economic, commercial and industrial
activity, more and more power utilities and other customers demanded high value packaged
solutions for their transmission system and enterprise electrification requirements. To meet this
demand PEL established an Engineering Procurement and Construction division. PEL EPC Division
consists of human resource with high academic qualifications and experience of local as well as
global market.
The EPC business has started generating appreciable revenues of PKR 927 million, PKR 1,088
million, PKR 507 Million and PKR 381 Million in FY 2009, FY 2010, FY 2011 and FY 2012 respectively
The EPC division delivers custom designed and built solutions in following areas.
 132kV and 220kV grid stations for power utility companies.
 132kV and 11kV substations for industrial and commercial customers.
1,713
1,400
1,200 1,088
Millions
1,000 927
800
507
600 507
400
200
0
FY08 FY09 FY10 FY11 FY12
 Integration of private captive power generation plants into utility network for sale of their
surplus power to utility companies.
 Electrification of housing projects and industrial parks.

Power Transformers
Extensive experience and success in manufacturing distribution transformers led to the

establishment of power transformer division in 2005. Since its birth the division has produced
transformers of ratings 31/40MVA, 20/26MVA, and 10/13MVA for ratings up to 132 KV. In order to
provide its customers the best of technology and products of international competence, PEL has
combined its technical expertise with GANZ, a renowned and experienced Hungarian transformer
manufacturer.
PEL is also exporting Power Transformer to International customers for their special requirements
and specifications. This business has contributed handsome revenues for the Company during the
last financial year and the
Company has already started
exporting to Saudi Arabia and
Europe. Given below are the
market shares of various
competitors in the power
transformer market.
Distribution Transformer

PEL made distribution transformers’ range includes oil immersed core type
transformers, Dry type (VP impregnated) transformers and
autotransformers. These transformers are tailor made for various ratings.
IEC or national standards are followed.
PEL offers transformer tanks with corrugated walls, detachable radiators

and tubular arrangement. The corrugated tanks have a better cooling efficiency, since the fins are
expandable. PEL transformers are available for various applications:
 Distribution Transformers (Pole /Pad Mounted)
 Auto Transformers
 Furnace Transformers
 Welding Transformers
 Chokes for furnace Transformers
 Any other special requirement
The transformers produced by PEL facility will be capable of reducing the transmission and
distribution losses of DISCOs. With persistent shortage of power in the country, improved efficiency
in the power transformers is expected to drive a surge in demand for the same from PEL.
Instrument Transformers
Instrument transformers are a sub-category of distribution transformers and comprise of LT Current

Transformer, HT Current Transformer and Potential Transformer.
Dry Type Transformer
The demand of electricity in Pakistan has been increasing rapidly in the last few years. There is a
mushroom growth in the high rise buildings, shopping areas, CNG and petrol stations, residential
colonies, etc. Due to the scarcity of space in cities, installation of conventional oil type transformers
in such congested and populated areas is always a big safety risk. The developed as well as many
developing countries are installing dry type transformers as a solution for ensuring safety in such
scenarios.

Types of Dry Type Transformers
There are primarily two main manufacturing techniques for dry type transformers; Cast Resin and
Vacuum Pressure Impregnated (VPI) with their own typical features. The main difference is their
insulation class; Cast Resin is Class F (155°C) and VPI is Class H (180°C). The Vacuum Pressure
Given below are sales of all transformers from 2008-2012
Energy Meters
PEL started manufacturing energy meters under license from ABB (USA) in 1992. The quality of
these meters has been certified by KEMA Laboratories (Holland) and conforms to IEC 521. The
energy meter plant is ISO 9001:2000 certified by SGS Yarsley, U.K. and the energy meters are
designed to address the needs of consumers for low and high voltage network with load conditions
up to 120A.
PEL is currently producing the following type of energy meters:
 Single Phase Static Energy Meters
 Single Phase Electromechanical Energy Meters
 Poly Phase Static Energy Meters

 Poly Phase Electromechanical Energy Meters
Supply period for WAPDA is 9-10 months while KESC is provided meters within 3-4 months. PEL also
provides a one year after sales warranty to all clients and in case of any fault the meters are
repaired at its own plant. PEL has an approximate market share of 35% in the energy meter market.
Given below are sales of Energy Meters from 2007-2012:
Switchgear
The switchgears are basically the panels through which the other
electric equipment can be handled. They are mostly used in industries.
PEL is currently producing switchgears for MV equipment and LV
equipment.
Given below are sales of Switch Gears from 2008-2012:
984
1,000 867 836
800 713 711
Millions
600
400
200
0
FY08 FY09 FY10 FY11 FY12

SERVICE MIX
 People
 Process
 Physical Evidence
People:
People is one of the major element of service marketing mix and in PEL’s case it is more important
because employees in Customer Service Department and their behavior towards customers defines
what PEL’s actually is. The companies like PEL has to focus on better customer service and customer
satisfaction to attain a healthier position in the market.
Process:
Service process is the way in which a service is delivered to the end customer. Service providing
process should be simple and easy for the customers to attain the customer loyalty. People prefers
to buy those product whose product image is strong and After Sale Service is good. PEL has a very
simple process of providing services. You just have to register your complaint first then their
representative will visit you and provide you a solution to the problem.
Physical Evidence:
It is an important element of services mix because people can evidence which company is providing
them a good service. For example one company is offering a Free Home Delivery service on buying
of its product while other isn’t offering it. Which one will you prefer? Obviously the one with the Free
Home Delivery service.
ANALYSIS OF COMPANY MARKETING/ SALES PROCEDURE

PEL’s marketing procedures have been mentioned above and its sales procedures are given below
Sales Procedures:
Sales Department at PEL is a very established, as this company is operating in the whole country
through its 25 company operated Area Sales Offices. In Head office there are two divisions of sales

department one is corporate sales department and other is retail sales department. Sales procedures
fall into six groupings:
 Measurement and Reporting
 Accountability Management
 Communication
 Provisioning
Type of Selling
PEL is using retail selling, personal selling and corporate selling.
Sales Return Procedure
Customer complaints, if the product is irrecoverable, then the management decides to replace the
product.
PRICING PROCEDURE STRATEGIES

 PEL more often uses competitor based pricing strategy moreover other strategies are also
practiced by PEL
 A competitive pricing strategy is followed for all the ranges except the Jumbo Range
 Premium price strategy is followed for the Jumbo range as PEL has got the monopoly in this
product
DISTRIBUTION POLICIES/ROCEDURES/ STRATEGIES

Distribution Strategy
 Dealers’ network should be increased especially in smaller towns where our network base is
not that strong.
 Sub-area offices are developing in D.G. Khan, Gujarat and Quetta.
In order to have a better control over the market and eliminate the dealers bargaining power,
which is mainly due to high stock levels at the dealers end, an improved stock maintenance policy

should be introduced i.e. warehouse should be increased in concerned areas, which will help in
having a better control over the market
PROMOTIONAL POLICIES/ PROCEDURES/ STRATEGIES

Advertising Procedure for Commercial Ad
The advertising is the one of major function of Marketing A.D, and they have designed very
affirmatively, it begins with the need of conveying the message which is desired by managers, it
could be awareness about new launch, amendments in existing products, introduction of new
models, revitalizing the continual of running campaign. Then it put forward to General Managers,
who approved it, after that the ultimate design is sent to RED which prepared the first copy of the
design or Art work and also prepares the estimate of whole job. Then the project is again returned
in Marketing A.D, where managers sit asides the RED personals and decide whether they want to
run this ad or not. If the ad is feasible in all aspects the managers decide by which vendor this ad
will be created. Most of time RED does this job as it is the in-house agency and liable for this. But if
they are already very busy in some other job or job is very minor in nature and could be economical
by performed out-sources, then it assigned to some parties like Astrontech, Alhafeez Printers,
Sahibzada Enterprises, etc. when job is assigned the vender provides a blue print of actual ad and
also the invoice of job. When the ad actually runs on media the payment is made by finance dept.
and one copy is filed for future prospects. This filing enables managers for estimation next year.
Advertising Budget
Advertising Budget for the year 2015 is 250 million rupee.
Advertising Message
The advertising messages are very attractive and thoughtful which are now created by RED
Communications. The current punch line is “Change your life”, it is also corporate slogan and were
invented instead of “Aaj bhi kal bhi” due to many reasons in which the stagnant out-look was main
issue, the new message describes the stories of success which leads in changing lives with enticing
styles and captive out-look of all PEL products. Here we scrutinize some messages which were
previously being used for different products.
For A.C. the following messages were used in different ads:

"Every second air-conditioner sold in Pakistan is a PEL"
"We are the largest manufacturers of No. 1. A.C.in Pakistan."
Advertising Messages for Refrigerator/Deep freezer:
"All New PEL"
"All New Style"
"All New Technology"
Advertising Message for Television
"Pocket Friendly and Vision Friendly"
Promotion plays a vital role in any company’s success and refers to raising customer awareness of a
product or brand, generating sales, and creating brand loyalty.
PEL realize it and promote its product through different channels of media some of them are given
below
 TV Commercials
 Print Ad
 Events
 Hamara PEL
TV Commercials:
One of the major medium of promotion is TV Commercials, in which PEL caste different celebrities as
a brand ambassador to promote its product. Now a days Meekal Zulfiqar and Mira Sethi are its brand
ambassador.
Print Ad:
Following mediums are used in print media by PEL.
 News papers

 Magazines and Periodicals
 POS materials
Events:
PEL also arrange different occasions to promote its brand name. some are given below
 Celebrating Earth hour
 PEL drama festivals
 Launching ceremony of every new model
Hamara PEL:
PEL publish its annual magazine named ‘Hamara PEL’ ever year for its customers and shareholders,
which states the annual achievements of the present year and strategies for the next year and also
states the events arranged by PEL in the year.

PART SIX
COMPANY ACCOUTNING / FIANACE SYSTEM

FINANCE DEPARTMENT
Finance Management is the lifeblood of any industry. If this area of corporate activities is
improperly handled, a company may lead insolvency despite having all the resources and
opportunities. Therefore proper financial management is vital for every business concern and
PEL is not lacking behind over here.
At PEL finance department for both division (Appliance and Power) is separate but their procedure
are same. To control both another departments called “Finance Center” is established.
Qualification and Benefits for Employees
Qualification required for the finance and audit officer is MBA/MS Finance, ACMA, CA
(inter/foundation/finalists).
Benefits are given according to the incentive system as discussed above.
Functions
The main responsibility of finance department is to provide finance according to the company
policy for different departments according to their need. They maintain financial budget for every
department separately. All the purchasing is done under finance department; finance controls the
purchase department.
The Finance Department maintains the finances of the PEL in terms of inflow and outflow, financial
forecasting, and analysis. The Finance Department is managed by a highly proficient team led by
the Manager Finance, Sr.Internal Auditor, Internal Auditor and Finance/Accounts Assistant. It also
ensures right use of funds contributed for various purposes.
Main functions of finance department are:
 Perform as a workstation and as an integrated circuit amongst all department of the company.
 Arrange monetary resources / funds at favorable prices and at proper time.
 Allocate resources / funds throughout the organization.

 Deal with banks, investment firms, modarabas, government departments of Appliance and
power division calculate and keep employees’ salaries record.
 Carry out final auditing of financial records prepared by Accounts department of Appliances
and power division.
The detail of some major functions performed at the finance department are as follows:
INCOME TAX /SALES TAX RECORDING
The Finance Center prepares and keeps up to date record of income tax & Sales Tax deductible at
source on the payments made to its buyers i.e. WAPDA and others, income tax/sales tax deductible
on the salaries / wages or on sales of its employees/dealers and tax payable to the government on
the company’s profit.
EMPLOYEES SALARY RECORDING
Controlled by Account Officer, this section is responsible for keeping three types of employee’s
salaries record. These records pertain to workers, staff and officers / managers.
When a person joints the organization he needs to submit a joining report to HR&A for verification.
Only those employees are eligible for salaries that have salary authorization and appointment letter
issued by HR&A department. Every month HR and A department send an absentees report to salary
controller of Finance Center. This list contains names of those employees who were on
unauthorized leave. The salary controller deducts required amount of money for unauthorized
leave. No salary is deducted if casual / sick / earned leave is properly applied for.
The monthly salary record of each employee is entered in the permanent master file of computer.
Necessary changes are made if any increment is observed in the employee’s salary.
Calculation of Salary
The salary is paid for the period of 30 days. The officer / managers get their salaries through
bank and workers are paid in cash. Salary for the individual employee is calculated after making
necessary additions or deductions. The additions and deduction vary according to the grade
level of employees. The basic formula for the calculation of salary amount is

Calculation of Net Pay
Add:
Basic Salary XXX
Bonus XXX
House Rent XXX
Special Pay XXX
Conveyance Allowance XXX
Utilities XXX
Less:
Recoveries (XXX)
NET PAY XXX
Recoveries
Recoveries can be permanent or non-permanent. Income tax is the permanent recovery and
welfare shop credit, provident fund, mess bills, advance pay taken etc. are non -permanent
recoveries. Permanent recoveries are always deducted from the employee’s salary where as
non-permanent are recovered only if they are due.
SOURCES OF FINANCING
The company has both internal and external sources of finance.
Internal Finances
The internal finance is generated through sales of goods. As well as in appliances division t he
cash flow is generated through the recoveries from the dealers or by making some special
deals in which they are given some special incentive in shape of cash and the money is taken
in advance.

External Finances
The external finances are generated through dealing with banks, DFIs (Direct Foreign
Investment) and other government agencies
COMPANY’S CAPITAL AND SHARES
Share Capital
The paid up capital of the company is Rs. 1,496,677,000 (Rupees One Thousand Four Hundred
and Ninety Six Million approx.) divided into 9,704,687 ordinary shares of Rs. 10 each and
52,625,000 ordinary shares of Rs. 10 each – both types with power to increase or decrease the
capital, to consolidate or sub divide the shares and issue shares of higher or lower
denomination.
Increase of Capital
In case of increase of capital, the company may issue new shares. The company may issue
convertible securities also.
Allotment of Shares
Only fully paid shares are to be issued. The shares are under the control of the directors who
may allot or otherwise dispose of the same to such persons, on such terms and conditions and
at such time as the directors may think fit.

ACCOUNTS DEPARTMENT
The Accounts Department looks after the financial matters. Accounts department for both
power and appliances division have similar functions as below.
Functions
This particular department has the responsibility to prepare and keep an up to date record of
following:
 Financial keep of daily, including the income statement and balance sheet.
 Book keeping of daily monetary transactions.
 Production maintenance reports
 Cost data on labor, materials and overheads.
 Remittances and loans
 Expense reimbursement
 Tax statement
 Financial deals with the banks, leasing companies, modaraba companies, DFIs and other
government agencies through Finance Center.
The finance department maintains record of all its expenses through vouchers. Generally the
following types of vouchers are used for this purpose.
 Cash payment vouchers for cash transactions recording.
 Purchase vouchers
 Bank payment vouchers
Journal vouchers for general expenses

Hierarchy of Accounts Department
DMD
Manager Finance
Accounts Finance
Senior Manager
Assitant Manager Accounts Accounts
Accounts Officer
(Book Keeping& Sales Account Officer Accounts Officer
(Sales Quantity AD) Costing Officer
Accounts Purchase
Accountants Accountant Accountant Assistant

Acountants (5)
Assistant
Accountants
Accountants(2)

FINANCIAL ANALYSIS
Financial statement analysis (or financial analysis) is the process of reviewing and analyzing a
company's financial statements to make better economic decision .These statements include the
income statement, balance sheet, statement of cash flows, and a statement of changes in equity.
For the financial statement analysis of PEL, we have performed the vertical and horizontal analysis
on the Balance sheet and Income statements of the years' 2013, 2014 and 2015.
VERTICAL ANALYSIS – BALANCE SHEET

Vertical analysis is a method of financial statement analysis in which each entry for each of the
three major categories of accounts, or assets, liabilities and equities, in a balance sheet is
represented as a proportion of the total account.
Formula:
%age of Base = (Amount of individual item/ Amount of base item) *100

2015 2014
Rs. in % Rs. in %
million age million age
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Issued, subscribed and paid-up capital 4,431 12.2 4,431 13.6
6 2
Capital reserve 1,294 3.58 1,294 3.98
Accumulated profit 7,891 21.8 5,302 16.3
3
TOTAL EQUITY 13,616 37.6 11,026 33.9
7
Advances against issue of ordinary shares 1,575 4.36 - -
Surplus on revaluation of property, plant and 4,804 13.2 4,568 14.0
equipment 9 4
LIABILITIES
NON-CURRENT LIABILITIES
Redeemable capital 3,879 10.7 4,826 14.8
3 4
Long term finances 2,187 6.05 2,443 7.51
Liabilities against assets subject to finance lease 61 0.17 75 0.23
Deferred taxation 2,262 6.26 2,394 7.36
Deferred income 43 0.12 45 0.14
TOTAL NON-CURRENT LIABILITIES 8,432 23.3 9,783 30.0
3 8
CURRENT LIABILITIES
Trade and other payables 815 2.26 881 2.71
Accrued interest/mark-up 261 0.72 501 1.54
Short term borrowings 4,669 12.9 4,243 13.0
2 5

Current portion of non-current liabilities 1,977 5.47 1,523 4.68
TOTAL CURRENT LIABILITIES 7,722 21.3 7,148 21.9
6 8
TOTAL LIABILITIES 16154 44.6 16,932 52.0
9 6
TOTAL EQUITY AND LIABILITIES 36149 100 32,527 100
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 15,510 42.9 14467 44.4
8
Intangible assets 338 0.94 344 1.06
Long term investments 9 0.02 64 0.2
Long term deposits 290 0.8 193 0.59
Long term advances 572 1.58 - -
TOTAL NON-CURRENT LIABILITIES 16,719 46.2 15068 46.3
5 2
CURRENT ASSETS
Stores, spares and loose tools 793 2.19 462 1.42
Stock in trade 6,182 17.1 6317 19.4
2
Trade debts 7,700 21.3 7124 21.9
Due against construction work in progress 1,024 2.83 1005 3.09
Short term advances 914 2.53 830 2.55
Short term deposits and prepayments 1,331 3.68 853 2.62
Other receivables 390 1.08 188 0.58
Short term investments 86 0.24 22 0.07
Advance income tax 433 1.2 319 0.98
Cash and bank balances 578 1.6 340 1.05
TOTAL CURRENT ASSETS 19,431 53.7 17459 53.6
5 8

TOTAL ASSETS 36149 100 32527 100
ANALYSIS:
The vertical analysis of balance sheet shows that in 2014, the portion of Current Assets was 53.68%
while Non-Current Asset was 46.32% of the Total Assets. The Current Assets represents that the
working capital position of PEL is really strong and it has a good ability to meet its current abilities
(day-to-day) expenses that are 21.98% of the total liabilities and stockholder equity. The portion of
the equity is 47.94% of the total liabilities and equity while total liabilities are 52.06% of the total
liabilities and equity. This shows that the capital structure is designed in such a way that most of
financing is done through loans (liabilities).
The vertical analysis of 2015 balance sheet shows that, the portion of current assets was 53.75%
while Non-Current Assets was 46.25% of the total assets. The current assets represents that the
liquidity position of PEL has become better which has enabled the company to meet its short term
obligations easily. In case of non-current assets, the vertical analysis ratio represents that the
production capacity of PEL would positively contribute towards the future profits. The portion of
the equity is 55.32% of the total liabilities and equity while total liabilities are 44.69% of the total
liabilities and equity. This shows that the capital structure is majorly financed through the equity
portion.
While comparing 2014 and 2015 vertical analysis ratios, the equity of the PEL has increased from
47.94% to 55.32% while liabilities decreased from 52.06% to 44.69%. This represents that PEL has
achieved the growth in profits, cost economies and business volumes over the period of time.
Assets have also exhibited an increase due to the procurement of plant and machinery,
construction of office buildings and long term deposits. This is a good indicator which shows that
there is an increase in the production capacity of PEL over the period of time which will become
responsible for the increase in future profits and in return equity. Similarly the increase in current
assets will help PEL to meet its short-term obligations on time.
HORIZONTAL ANALYSIS- BALANCE SHEET

A horizontal analysis, or trend analysis, is a procedure in fundamental analysis in which an analyst
compares ratios or line items in a company's financial statements over a certain period of time.
Horizontal analysis allows investors and analysts to determine how a company has grown over

time. Additionally, analysts and investors could use horizontal analysis to compare a company's
growth rates in relation to its competitors and industry.
Formula:
%age change= [Current year amount – Base year amount)/ Base year amount]* 100

2015 vs 2014 vs
2015 2014 2014 2013 2013
Rs. Rs. Rs.

million % age million % age million
EQUITY AND LIABILITIES
Share capital and reserves
Issued, subscribed and paid-up capital 4431 - 4431 41.54 3131
Capital reserve 1294 - 1294 144.2 530
Accumulated profit 7891 48.85 5302 83.76 2885
TOTAL EQUITY 13616 11026 6545
Advances against issue of ordinary shares 1575 - - - -
Surplus on revaluation of property, plant

and equipment 4804 5.16 4568 -0.95 4612
LIABILITIES
NON-CURRENT LIABILITIES
Redeemable capital 3879 -19.63 4826 95.86 2464
Long term finances 2187 -10.49 2443 -24.5 3233
Liabilities against assets subject to finance

lease 61 -17.89 75 143.5 31
Deferred taxation 2262 5.53 2394 -1.34 2427
Deferred income 43 5 45 -5 48
TOTAL NON-CURRENT LIABILITIES 8432 -13.82 9783 19.27 8203
CURRENT LIABILITIES

Trade and other payables 815 -7.52 881 -6.79 946
Accrued interest/mark-up 261 -47.87 501 -65.6 1455
Short term borrowings 4669 10.03 4243 -14.5 4960
Current portion of non-current liabilities 1977 29.77 1523 260.9 422
total current liabilities 7722 8.02 7148 -8.15 7782
TOTAL LIABILITIES 16154 -4.6 16932 5.92 15985
TOTAL EQUITY AND LIABILITIES 36149 11.14 32527 19.84 27143
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 15,510 7.21 14,467 -2.37 14,818
Intangible assets 338 -1.65 344 -1.42 349
Long term investments 9 -86.06 64 670.2 8
Long term deposits 290 50.3 193 61.11 120
Long term advances 572 - - - -
TOTAL NON-CURRENT ASSETS 16,719 10.96 15,068 -1.49 15,295
CURRENT ASSETS
Stores, spares and loose tools 793 71.68 462 61.72 286
Stock in trade 6,182 -2.14 6,317 62.66 3,883
Trade debts 7,700 8.09 7,124 30.08 5,476
Due against construction work in progress 1,024 1.87 1,005 138.7 421
Short term advances 914 10.15 830 28.01 648
Short term deposits and prepayments 1,331 56.03 853 88.32 453

Other receivables 390 107.81 188 642.3 25
Short term investments 86 296.02 22 -5.22 23
Advance income tax 433 35.66 319 -9.91 354
Cash and bank balances 578 69.86 340 22.42 278
19,431 11.29 17,459 47.36 11,848
TOTAL ASSETS 36,149 11.14 32,527 19.84 27,143
Analysis:
Horizontal analysis shows that the total equity of PEL increased over the past years due to the
achievements of milestones like high profits, cost economies and business volumes. The paid-up
share capital increased to Rs. 4431 million due to the issuance of ordinary shares in 2013 and 2014.
Capital reserves increased to Rs.1130 million over time due to share premiums. In 2015,
accumulated profits were Rs. 7891 million because of the increased sales volume by PEL and
reduced current liabilities and increased equity.
The non-current liabilities including long term debt, deferred taxation and deferred income
increased over the past years whereas the current liabilities decreased over the past years due to
increased volume of sales and increased equity which helped to pay off the short term obligations
and increased the net working capital.
Currents assets which are composed of short term advances, inventories, trade debts, short term
investments, prepayments, deposits, cash and bank balances, etc. increased over the past years
and was recorded at a total of Rs. 19,431 million in 2015 mainly due to increase in business
volumes. Non-current assets of PEL including property, plants, intangible assets, investments,, etc.
increased over the past years due to purchase of other plant and machinery and other fixed assets.
Long term deposits also increased due to the growth in business operations. However, long term
investments decreased due to some impairment loss. An overall increase in non-current assets is
beneficial for PEL as it increases the production capacity of the firm causing an increase in business
volumes and thereafter its profits.

Highlights
 Current assets have increased. It is because company has acquired more cash and bank
balance in result of more sales. Along with that increased receivables and short term
investments also boosted it.
 Non-current assets have also increased. It is because company has issued a long term
advance and has invested in acquiring new plants and equipment, which later on added to
increased sales.
 Total assets have increased as a result in expansion of business
 Total equity has increased. It is because company has earned profit which added up to
company reserves
 Surplus has been gotten on revaluation
 Current liabilities have decreased because company is paying off its creditors more
efficiently.
 Non-current liabilities have decreased because PEL is cutting down its finance cost, for
which they have to clear their outstanding debts to avoid further interest expense.
VERTICAL ANALYSIS-INCOME STATEMENT

Vertical analysis can also be performed on the profit and loss statement. It makes it easier for the
company to see the relative annual changes within the business.
FORMULA:
%age of Base = (Amount of individual item/ Amount of base item) *100

2015 2014
Rs. million % age Rs. Million % age
Revenue 29323 100 24126 100
Sales tax and discount -4210 -14.33 -3608 -14.95
Revenue – net 25122 85.67 20518 85.05
Cost of sales -17688 -60.32 -14209 -58.89
Gross profit 7434 25.35 6309 26.15
Other income 36 0.92 32 0.13
Distribution cost -1331 -4.54 -1090 -4.52
Administrative and general expenses -758 -2.59 -690 -2.86
Other expenses -188 -0.64 -114 -0.47
Operating profit 5193 17.71 4449 18.44
Finance cost -1665 -5.68 -1893 -7.85
3528 12.03 2556 10.6
Share of loss of associate -13 -0.05 -11 -0.05
Profit before taxation 3514 11.98 2545 10.55
Taxation -634 -2.16 -304 -1.26
Profit after taxation 2880 9.82 2241 9.29
Other comprehensive income
total comprehensive income 2880 9.82 2241 9.29
ANALYSIS:
In 2015, the cost of sales was 60.32% of total sales. Similarly, general, distribution and
Administrative expenses are 7.77% of total sales. Company has not performed very well in
controlling cost of sales expenses as it were 58.89% last year and increased in current year to
60.32%. Company needs to recheck its cost of sales controls as it constitutes a major portion of
revenue. Finance costs has reduced from last year but we can clearly see that finance cost is not a
major expense and therefore do not impact much on current year’s performance. This also

indicates that either the company’s borrowings are low as compared to equity or is capitalized in
some other assets of the company.
Pel earned revenue of Rs. 29323 million, through an increase of Rs.5198 million from the last year
mainly due to strong growth and sales seen by reasonable order uplift of power division products
by WAPDA and private sectors. Gross profit in 2015 amounts to Rs. 7437 million as compared to Rs.
6309 million for the year 2014, resulting in an increase of 18% as compared to previous year. The
increase is due to rise in exports, cost efficiencies, increased business volumes and improved
product designs. Distribution costs were Rs. 1331 million, showing an increase of 22% from the
previous year directly in proportion to the increase in revenue by 22%. Finance costs reduced by Rs.
228 million to Rs. 1665 million as compared to previous year due to repayments of debt finances.
Highlights:
 Gross profit has decreased due to an increase in cost of sales.
 Expenses have been decreased, it is due to better management of resources by company
 Profit before tax has increased, by cutting down financing cost and other operating expense
it has increased.
 Profit after tax has still increased despite the significant increase in tax.
 Total income has increased because of increase in sale and by cutting down operating
expense and financing cost
HORIZONTAL ANALYSIS-INCOME STATEMENT

Horizontal analysis looks at the trend of financial statements over multiple periods, using a
specified base period. Horizontal analysis typically shows the changes from the base period in dollar
and percentage. Horizontal analysis can also be performed on the profit and loss statement in order
to analyze the company’s revenue growth or company’s loss performance over a certain period of
time.
Formula:
%age change= [Current year amount – Base year amount)/ Base year amount]* 100

2015 2015 vs 2014 2014 vs 2013
2014 2013
Rs. % age Rs. % age Rs.
Million million million
Revenue 29,323 21.54 24126 27.94 18856
Sales tax and discount -4,201 16.45 -3608 51.12 -2387
Revenue – net 25,122 22.44 20518 24.58 16469
Cost of sales -17,688 24.49 -14209 14.46 -12414
Gross profit 7,434 17.86 6309 55.59 4055
Other income 36 10.42 32 -29.72 46
Distribution cost -1,331 22.17 -1090 34.63 -809
Administrative and general -758 9.99 -690 7.3 -643
expenses
Other expenses -188 65.12 -114 233.61 -34
Operating profit 5,193 16.72 4449 70.11 2615
Finance cost -1,665 -12.02 -1893 4.03 -1819
3,528 38 2556 221.18 796
Share of loss of associate -13 23.44 -11 -47.9 -21
Profit before taxation 3,514 38.07 2545 228.46 775
Taxation -634 108.72 -304 81.3 -168
Profit after taxation 2880 28.49 2241 269.07 607
Other comprehensive income - - - - -
total comprehensive income 2880 28.49 2241 269.07 607
ANALYSIS:
While comparing the change from 2013 to 2014, we can see that the revenue increased by 27.94%
from 2013 while the cost of sales also increased by 14.46 %. As the increase in revenue is more than
the increase in cost of sales, this shows that the company is performing well in terms of controlling
its cost of sales. Distribution, general, administrative and other expenses also increased from 2013

to 2014. PEL needs to look carefully into the expense policies in order to cut down the cost.
Comparing the change from 2014 to 2015, Pel earned revenue of Rs. 29323 million, through an
increase of Rs.5198 million from the last year mainly due to strong growth and sales seen by
reasonable order uplift of power division products by WAPDA and private sectors.
Cost of sales from 2014 to 2015 increased to 24.49% which is more than the increase in revenue
which is seen as 21.54%. Pel needs to consider this and should revise the cost of sale policies and
should have a close check on the control measures of this cost otherwise the increase in revenue
would not be much beneficial for the company with increased cost of sales. Gross profit in 2015
amounts to Rs. 7437 million as compared to Rs. 6309 million for the year 2014, resulting in an
increase of 18% as compared to previous year. The increase is due to rise in exports, cost
efficiencies, increased business volumes and improved product designs. Distribution costs were Rs.
1331 million, showing an increase of 22% from the previous year directly in proportion to the
increase in revenue by 22%. Finance costs reduced by Rs. 228 million to Rs. 1665 million as
compared to previous year due to repayments of debt finances.
Highlights
 Sales have increased much over the last year, which shows a great market strength of PEL
 Cost of sale has also increased due to increased price of raw material and labour
 Gross profit has increased as the result of increase in sales
 Finance cost has dropped significantly. It shows that company is in more stable financial
position and not acquiring further debts
 Profit before taxation has increased.
 Profit after taxation has also increased because of increase in sales and decrease in finance
cost

OPERATIONAL HIGHLIGHTS
Revenue
2015 turned out to be an excellent operational period. Revenue increased by 19% i.e. Rs.29,323
Billion against Rs.24,126 Billion of the Preceding Year. Home Appliances Division of the Company
achieved its Planned Volumes and Power Division also contributed well towards Volume Growth.
Gross Profit
Due to wide ranging R&D, decrease in importation cost and Cost

Control measures the Company achieved a substantial growth in
the Gross Profits of Rs. 7434 million.
No table of figures entries found.
Profitability
The Company earned after Tax Profit of Rs. 2880 Million against 2241 Million of the Previous Year
due to better margins and Cost Controls.

RATIO ANALYSIS
1. Activity Ratios
i. Payable Turnover Ratio:
Payable Turnover Ratios=Credit purchases/Payables
Years 2015 2014

Payable Turnover Ratio 23.54 17.63
Interpretation:
PEL payable turnover ratio in increasing from last period, which means company is paying off its
credit suppliers faster. It is a good sign. Since 2011 it is increasing.
ii. Payable Turnover in Days:
Payable Turnover in Days=365 / Payable Turnover Ratios
Years 2015 2014

Payable Turnover in Days 16 21
Interpretation:
It indicates that company has shortened their credit cycle over this period. It is good in some
aspects as company is efficiently paying off its suppliers, but on the other hand company should
also take good use of credit period which is allowed by the supplier.
iii. Receivable Turnover Ratio:
Receivable Turnover Ratios=Credit Sales/Net Receivable
Years 2015 2014

Receivable Turnover Ratios 3.96 3.83
Interpretation:

Receivable turnover ratio for PEL has slightly increased. It may not effect that much to company
financial position but it should keep a check on it as it may increase rapidly similarly as it happened
in 2012.
iv. Receivable Turnover in Days:
Receivable Turnover in Days=365/ Receivable Turnover Ratios
Years 2015 2014

Receivable Turnover in Days 92 95
Interpretation:
This ratio is indicating that company has improved its collection cycle slightly. It shows its credit
management is improving over the period of time.
v. Inventory Turnover Ratio:
Inventory Turnover Ratio=Cost of Good Sale/Avg. Inventory
Years 2015 2014

Inventory Turnover Ratio 2.83 2.79
Interpretation:
Inventory turnover ratio previously fallen since 2012 which is not a good sign but it may somehow
depicts the efficiency of purchasing department that they are managing inventory very well. While
this year it increases slightly which may also a good sign because it can be due to increase in sale of
company in this period.
vi. Inventory Turnover in Days:
Inventory Turnover in Days=365/ Inventory Turnover Ratio

Years 2015 2014
Inventory Turnover in Days 129 131
Interpretation:
As it can be seen that the inventory turnover in days has decreased, which is definitely a good sign
as it show that company is rapidly turning its inventory into sales and not holding up any cash in
form of inventory.
2. LIQUIDITY RATIOS
i. Current Ratio:
Current Ratio=Current Assets/Current Liabilities
Years 2015 2014

Current Ratio 2.52 2.44
Interpretation:
Current ratio shows company’s ability to meet its short term liabilities as they fall due. It has
increased over last year which is a good sign for company because it is paying off its creditors
quickly.
ii. Acid Test/Quick Ratio:
Acid Test/Quick Ratio Ratio=Current Asset-Inventory/Current Liabilities
Years 2015 2014

Acid Test Ratio 1.61 1.49

Interpretation:
It analyze a company in similar way as Current ratio does, but it provides better overview regarding
company’s liquidity because it does not include inventory which has poor liquidity. PEL’s quick ratio
is increasing which shows that it is more liquid.
3. PROFITABILITY RATIOS
i. Gross Profit Ratio:
Gross Profit Ratio=Gross Profit/Net Sales x 100
Years 2015 2014

Gross Profit Ratio 29.59 30.75
Interpretation:
Gross profit ratio has decreased over last year. it may happened due to the increase in Cost of
material which has risen over the time. But it can be taken care by increasing sales simultaneously.
ii. Net Profit Ratio:
Net Profit Ratio=Net Profit/Net Sales x 100
Years 2015 2014

Net Profit Ratio 11.46 10.92
Interpretation:
PEL has improved its net profit margin which is good sign. Despite the increase in taxes this year,
revenue has compensated towards the net profit.
iii. Return on Capital Employed:

Return on Capital Employed=EBIT/Capital Employed x 100
Years 2015 2014

Return on Capital Employed 9.37 8.79
Interpretation:
Increased ROCE of PEL is due to increase in their net profit. This is due to increase in sale. They can
further improve it by reducing the cost of material and labor.
iv. Return on Equity:
Return on Equity=Net Profit after Tax/Shareholder Equity x 100
Years 2015 2014

Return on Equity 14.40 14.37
Interpretation:
Return on equity has increased which show that how well PEL is doing with the capital which is
invested by the shareholders.
v. Return on Investment:
Return on Investment=Net Profit after Tax/Total Assets x 100
Years 2015 2014

Return on Investment 7.96 6.89
Interpretation:
ROI shows how well company is investing in assets, as it has increased for PEL so it is a good sign.
4. SOLVENCY RATIOS
i. Debt to Equity Ratio:

Debt to Equity Ratios=Long Term Debt/Shareholder's Equity
Years 2015 2014
Debt to Equity Ratio 29:71 36:64
Interpretation:
PEL has made a remarkable improvement in this period by decreasing its Debt to Equity ratio. It
shows that how well PEL is doing in terms of profit. It is financing most of its investment by retained
earnings rather than taking new loans.
ii. Debt Ratios:
Debt Ratios=Total Liability/Total Asset
Years 2015 2014
Debt Ratio 0.45 0.52
Interpretation:
As we came to know that PEL has reduced their debts over last year so this ratio has decreased
which shows that company is less financially risky because it is less leveraged .
5. MARKET RATIOS
i. Earnings per Share:
Earnings per Share =Profit after Tax/No. of Shares
Years 2015 2014
Earnings per Share 7.13 6.61
Interpretation:
As the PEL has gained more profit this year so the earning per share has also improved

ii. Dividend per Share:
Dividend per Share =Dividend/No. of Shares
Years 2015 2014
Dividend per Share 0.13 0
Interpretation:
Previously company had not issued any dividend but this year it issued dividend. It is good sign for
shareholders, as they are getting benefit from company’s profitability.
iii. Dividend Payout Ratio:
Dividend Payout Ratio =Dividend per Share/Earning per Shares x 100
Years 2015 2014
Dividend Payout Ratio 1.75 0
Interpretation:
For last few years, PEL was not giving out any dividend. It might be company was planning to use its
Cash reserve to invest in business. This year they had paid out the dividend to tempt the
shareholders.
INTERNAL AND EXTERNAL COMPARISON

PEST ANALYSIS
Political
 Pakistan is one of the most vulnerable countries in the world
 Very few incentives are given to the manufacturers by the government
 The government has also increased the minimum wage rate

Economic:
 The economy of Pakistan is facing a financial crisis
 There is a strong black economy in the Pakistan
 High level of unemployment
 GDP (Gross Domestic Product) is very low
 Negative growth rate in manufacturing
Social:
 Air Conditioners are only used by the upper and middle class
 People are more price conscious
 People have started considering ACs as a symbol of status
 The demand of inverter ACs have increased in the market for the purpose of energy saving
Technological:
 Technology is rapidly changing
 Companies are in competition to introduce latest technology in its product

SWOT ANALYSIS
The strengths, weaknesses, opportunities and threats of PEL are discussed below:
Strengths
PEL has the following strengths and is in more competitive position in these areas than its
competitors. Following are the main strong points of PEL:
 Strong brand image
 Strong dealer network
 Strong quality, sale and service
 Market leader WRAC (Window Room Air Conditioner)
 Number 2 in refrigerators in Pakistan
 Strong grip in home appliances
 Strong Management
 Distribution of Authority
 Strong research and development department
 Free customer service
Strong Brand Image
PEL has created the strong brand image in the mind of the customer’s through higher quality and
low price. The customers of the PEL always prefer to buy the PEL home appliances like WRAC split
AC and refrigerators whenever they wanted to buy. PEL is a popular company in Pakistan and
everyone knows about the PEL products and its brand. That’s why PEL selling of WRAC are very high
in the market than the competitors selling.
Strong Dealer Network
It is also the plus point for the PEL that it has also developed the strong dealer network in the
market. The dealers are always trying to sell the PEL appliance to the customers because they know
there are high margin in the PEL products. They can get more money after selling the PEL products.
The management of PEL also provides more incentives to their dealers than their competitors.

Dealers are very conscious about the PEL products and always guide the customer in buying the PEL
appliances and tell them the more qualities of PEL products than others products.
Strong Quality, Sale and Service
PEL is also in a strong position that it provides the superior quality to your customers. It makes
sense in the mind of the customers that PEL products are better in quality than the other
companies’ products. PEL also provides the after sale service to their customers which delight the
customers satisfaction. It is another way to advertise the products because when customer is highly
satisfied then he tells the other ten persons that they should buy the PEL products. It is the free
publicity of PEL products that PEL Company gains.
Market leader in WRAC (Window Room Air Conditioner)
It is another strong point that PEL is a market leader in WRAC. The window room air conditioner is
more demanded by the customers than its competitor’s air conditioners because it has more
durability in operating systems and cools the room in few minutes. PEL always strives to provide the
innovative features in WRAC. PEL air conditioner is cheaper and has a higher quality than others
WRAC. That’s why customers always purchase the PEL window air conditioner.
Number 2 in Refrigerators in Pakistan
After the Dawlance refrigerators PEL has a second position in refrigerators market. PEL always
continuously strives to pursue the strategies adopted by the competitors. As a consequence the
price war starts among the companies so each company reduces the prices and try to increase the
sales of its refrigerators. PEL is also making efforts for the quality improvements than its competitor
Dawlance.
Strong Grip in Home Appliance
So PEL is one of the companies, which is having a strong grip in the home appliance i.e. WRAC,
Refrigerators, micro way Owen etc. that is a strong point for the company. PEL is penetrating the
market by introducing the new home appliance like Split Air conditioner and always trying to get
the maximum shares in the home appliance market.
Strong Management

It is another plus point that PEL has a strong management. Its employees are more competent and
fully skill and knowledge. They always cooperate the top management in achieving the goals that
are assigned to them. Employees are well aware about the company objectives and so they are
committed to the development of company.
Distribution of Authority
Top management of PEL delegates the power to the subordinates for achieving the marketing
objectives in a specified time period. So every manager has an authority that use in achieving the
Goals. He can easily handle the complaints of customers and try to satisfy them. So it is a strong
point for the PEL because there is decentralization of powers.
Strong Research and Development Department
PEL has a strong research and development department that is continuously trying to develop new
features for the products. R&D department spends huge amount of money for the development of
product. R&D makes research for introducing the new product and asks the customers what they
want extra in our products. For this purpose they hire the highly qualified employees in R&D
department. That is another strong position of PEL.
Free Customer Service
PEL provides free customer service for one year to its customers. So the customers always buy the
PEL products due to its free service and it becomes loyal customer for the PEL. PEL always provides
help to their customers for repairing the WRAC, Refrigerators and other items. PEL always make
efforts to satisfy the customers.
Public Limited Company
Although PEL is owned by the SAIGOL GROUP but its shares can be purchased and sold in stock
exchange market. So everyone who is interested in purchasing the shares of PEL he can purchase. It
is also called public limited company. So people are more interested in buying the PEL products
Weaknesses
Like other companies PEL has some weaknesses in operating the business. If PEL overcome on
these weaknesses then it can become a market leader in the home appliance. PEL loose some
competitive edge in the following points:

 Lack of advertisement
 System variations
 Lack of Product range
 Less Utilization of capacity
 Financial Problems
Lack of Advertisement
It is a second major weakness of PEL that it never makes advertising on TV. That creates hurdle in
selling the products and customers cannot know the changes, which are made in products by the
company time to time. Company is not in apposition that it made advertising of all their products
on a wide range because of its high cash requirement towards the production side. Due to this
problem company always make efforts to develop strong relationships with dealers.
System Variations
It is also the main weakness of PEL that there are rapidly a change in polices of selling the products.
That’s creates problems for the selling team how to sell the products to the dealers because the top
management requires the urgent amount of money. So selling team sells the products sometimes
on hard cash that will reduce the prices of products that gives the benefits to the dealers and
creates problems for the management.
Lack of Product Range
PEL has introduced more products of consumer items but there are more needs to develop new
consumer items like PEL washing Machines, Vacuum cleaner and other items. Due to lack of
product Range, Company cannot earn more profit because consumers have high demand of these
products and they say that if company is investing in these products then we can keep all PEL items
and whenever need to keep other’s company products.
Less Utilization of Capacity
Due to lack of finance a company cannot utilize all its resources on its full capacity. It increases the
cost of products per unit that decreases the profit margin of each consumer item. Sometimes

company cannot allocate there sources according to the requirements of production department
that’s becomes the problem for the complete utilization of resources. For the company it is also the
main point of weakness.
Financial Problems
Sometimes PEL faces the financial problems because its stocks are so much piled up in the stores
that create the problem of cash flow because when the stocks are not sold and the production is in
process for 24 hours a day than the company faces such problems. So company aggressively
research the sources of cash and stress the dealers to sell the PEL’s products to the end consumers.
Company sometimes sells their products on advance bases to the dealers and gives them high
margin of profit. That’s why a company is facing the financial problems and company never pays
attention on the alternative resources that will help in reducing the stocks. That is a customer
demand and due to this it is the main weakness of company
Opportunities
For the PEL there are more opportunities for expansion the business. If PEL realize that
opportunities then it will be more fruitful and profitable for the company. Even if company does not
take advantage of these opportunities then it will lose its competitive position and high profit. Its
competitors will give PEL tough time to pursuing the opportunities that are adopted by them.
Following are the opportunities for the PEL.
 Exploration of market in Pakistan
 Increase in product range
 Export opportunity
 Increase in production capacity
Exploration of Market in Pakistan
PEL has the opportunity to explore the market in all over the Pakistan. Even though PEL introduce
its products in all cities of Pakistan but there are so many places that have the capacity to absorb
the PEL’s products. These places are tribal areas in NWFP and northern areas of Punjab and NWFP,
central area of SIND. If company introduces their products in these areas then it can get a large
amount of profit and increase its market shares.

Increase in Product Range
It is the main opportunity for the PEL that it can increase its product range that will be a more
profitable for the company. There are more needs to develop new consumer items like PEL washing
Machines, Vacuum cleaner and other items. Due to lack of product Range, Company cannot earn
more profit because consumers have high demand of these products. If PEL does not take this
opportunity then it will lose high margin of profit and market share. It will reduce the fixed cost and
increase the efficiency of the employees.
Export Opportunity
PEL Company has also the opportunity to export their products in other international countries like
UAE, SAUDI ARABIA, and other Arabic and African countries. It will not only reduce the dependence
on one market but also increase the market shares and profits. It will also help the company to
spread the fixed cost on all of its production that will reduce the total cost and company will enjoy
the high profit.
Increase in Production Line
Company can also increase its production line at the maximum level that will increase the efficiency
of the employees and also will reduce the total cost. Sometimes company cannot allocate the
resources according to the requirements of production department that’s becomes the problem for
the complete utilization of resources. Company should look the market conditions then it will
produce their products.
Threats
PEL Company in such a competitive era has many threats as well. These threats are for the present
situations and future. Company should make its policies and strategies according to these threats.
So following are the main threats for the PEL
 Strong competition
 China’s product introduction in the market
 Price war
 Slow growth rate in Pakistan

 Instability of government
 Tax department
 World Trade Organization
 Investors
Strong Competition
There is very strong competition for the home appliance in the market. So every company tries to
come in the number 1 position for achieving the maximum shares in the market. Every company
adopts different strategies for selling of the products. It reduces the profit margin of each company
and increase the bargaining power of the buyers who will demand higher quality of products and
lower cost. That is the main threat for the PEL Company.
China’s Product
China’s products are another threat for the Pakistani companies because these products are
cheaper than the Pakistani products. An even china product not well in quality but it is
comparatively in low prices than the consumer’s home appliance that are manufactured by the
indigenous company. China products stress the indigenous companies to lower the quality and
prices that will not be profitable in the long run.
Price war:
As there is stiff competition in the home appliance market that will cause the price war. So every
company reduces the prices of its products to increase the sales. It will not only reduce the profit
margin of the company but also reduce the quality of products. So price war is the main threats for
all the companies, which are operating in these products.
Slow Growth Rate in Pakistan
There is also slow growth rate of home appliance in Pakistan that will increase the stocks of the
company. It becomes the burden for the company that how to sell these stocks. Its main reason is
that purchasing power of the buyer is very low and it has no income to buy the expensive the home
appliance. It is also becoming a main threat for all the companies.

Instability of Government
The rapid changes in governments will become threats for the companies because every
government adopts its own policies for the industries. So it increases the uncertainty for the
investors who want to invest heavy amount in their new projects. That’s become the major threat
for the companies and decreases the profitability. Due to fear of politically instability companies
will also not invest the heavy amounts.
Tax Department
Tax department is another major threats for the companies that will restrain the business
expansion. There is more complicated tax procedure for the companies, which are interested to
increase the investment in their businesses. A tax department also asks the company from where it
receives the money and where this money will spend. Due to fear of heavy taxes companies would
not like to invest the heavy amount.
World trade Organization
World trade organization will give the permission in 2005 to each company of home appliance to
export their products after paying less duties or duty free products. That will increase the pressures
for the indigenous companies to reduce the prices and increase the quality. It will increase the
competition among the foreign companies and indigenous companies. But our companies also run
under uncertainty conditions. This will decrease the morale of indigenous companies

PART SEVEN
TRAINING PROGRAM DURING INTERNSHIP

LEARNING AS AN INTERN
I learned how to design training
I learned basic use of adobe
I learnt how to make employee card and internees’ card
I was able to conduct training
Learnt to supervise lower staff
Learnt how to make use of E-mail in professional manner
Managing files of employees
Maintaining attendance of employees and lower staff
Managing social service records
Managing leaves of employees
Learnt about 5S implementation
Learnt managing token of vehicles
Arranging hotel and tickets for employee and guests
Learnt about allowances and compensation and benefits
Evaluating training program
Learning recruitment process
New Knowledge Acquired

I learned a lot during my internship, related and un-related. Related is that I learned the actual
working of IR&A department, their rules and policies, procedures, systems, values etc. Unrelated is
that I got to know the office environment. How people work together systematically and co-
operating with each other. No doubt the routine of the IR&A department and nature of job there is

quite tough. But I found all the employees and managers hardworking, disciplined and punctual in
their task accomplishments.
Problems Encountered
As such I didn’t face any type of problem during my internship. The only thing I found a bit
problematic was that it was a bit harder for me to take time from employees to teach me new
things and the working of IR&A department, because of their extreme busy schedule. Otherwise I
found the whole PEL staff very friendly and co-operative, especially with internees.
Difficulties in Getting Data

 Scheduling meetings with HR department had been a major difficulty
 Being in IR&A getting knowledge of HR
No information regarding policies was given
 No access to EMS was there to get the accurate figures relating to employees
 Taking time from all employees for discussion

TIMELINE OF INTERNSHIP
JUNE
Sun Mon Tue Wed Thu Fri Sat

1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30
Orientation Introduction to Activity on mail generation and Discussion on functions
IR & A seeing PEL with regard to Labor of HR and IR & A
Laws

JULY
1 2
Introduction to
compensation and
benefits
3 4 5 6 7 8 9
EID VACATION
10 11 12 13 14 15 16
Maintaining files of Training and Designing Making Presentation for
employees for development training for presentation for Labor on 5S
compensation introduction different grades receptionist
17 18 19 20 21 22 23

Conducting Designing Drawing results Conducting Visit to mess and
training basic questionnaire for from evaluation training on floor designing training
training of Labor training evaluation for mess staff
24 25 26 27 28 29 30
Conducting and Learning making Maintaining BLOOM SESSION Basics of Adobe
assisting in training employee and interns attendance software
of Receptionist cards record in files
31

AUGUST
1 2 3 4 5 6
Learning Maintaining Learning process Meeting with Meeting with HR,
recruitment absentees file and of hotel GM Question Answer
method social security of reservation and session and
lower staff token report
confirmation of submission on
cars T&D
7 8 9 10 11 12 13
Certificate
distribution
ceremony

HUMAN RESOURCE DEPARTMENT
Human Resource Department is the most important and key department of every organization. It
not only deals with the employees of the organization but also help in management of the affairs of
the company.
PEL has a full fledge HR Department known as HR&A with the staff strength of 38 employees. The
GM is the top executive in the HR department and there is one manager of HR to facilitate the work
of G.M. and 2 personnel and an admin officer.
Vision of HRD
“Our vision is to achieve excellence through innovative HR practices and continuously exceeding
our PEOPLE Expectations.”
Mission of HRD
PEL HR mission is two-fold:
 To Manage Talent and build capabilities of our people thus enabling them to deliver Sustained
Performance.
 To facilitate them in creating a Collaborative Work Environment that develops a culture of
Continuous Learning
HR Values
 Respect
 Team Spirit
 Commitment
 Customer Satisfaction
HR Planning
HR planning is done according to the organizational needs. No particular set schedules are there for
planning by HR. The only thing is organizational need basis.
HR Department’s activities are spread over the whole organization. The following areas come under
direct supervision of HR department at PEL.
 Hiring and firing of employees

 Training and development
 Compensation system
 Security and fire fighting
 Gate supervision
 Telephone exchange
 Fair price shops
 Canteen supervision
 Dispensary and health care
 Time clerks etc.
As the security in the company like PEL is very much important so there is 24-hour arrangement of
security by three shifts in charges headed by a security officer.
He is also responsible for the firefighting activities and for the placement and checking of all the
firefighting equipment. For the purpose of security and for the visitors there are two gates under
the supervision of a supervisors with two gate assistants who are responsible for all the in and out
transport and movement activities in the organization.
There is a telephone exchange in the organization having a facility of 13 lines. The organization is
providing the basic necessities to the workers e.g. flour, ghee, sugar etc. from the fair price shop at
very controlled price and quality. There is a fair price supervisor who is responsible for the purchase
and distribution.
PEL is also providing the facility of mess to the workers and as well as officer. Mess is provided at
very nominal charges. Mess supervisor is responsible for the purchases and cooking.
There is not a particular hospital in PEL but there is a dispensary with two dispensers and one
senior dispenser. For the medical checkups and for any detailed curves the employees are sent to
social security hospital.
The Human Resources Department at PEL is engaged in the areas of Recruitment & Selection,
Training & Development, Performance Management, and Organizational Development, and strives

to align these functions with the overall Business Strategy. PEL place great emphasis on People
Development so that people and the organization perform at maximum capacity in a highly
effective manner.
Qualification Criteria for HR
Qualification required for the HR officer is MBA/MPA/MS in HR.
Benefits are given according to the incentive system as discussed below.
Recruitment by HR
For recruitment first of all a requisition is generated by the concerned department. For unit1
employees requisition is generated by IR&A and HR line managers, whereas, if PEL teams needs new
hiring requisition is send to unit1 and generated by the place where it is needed.
After generation of requisition it is now forwarded to HR business partner where he evaluates the
requisition that whether the need of hiring is needed or not. When is approval is taken it will now be
forwarded to HR manager and he will consider it and approves it. If he doesn’t approve at this stage
it won’t move ahead.
Now it will be referred to reward specialist and he will decide its job description and benefits etc.
then requisition goes in hands of talent acquisition team who will be responsible to post this on
LinkedIn, Facebook, and PEL career portal.
After that comes the step of receiving resumes and screening them out , following which will be
shortlisting of potential candidates and they will be called now for interview. After first interview that
will screen candidates whether they are serious about their job and their general information will be
taken then there will a test of them to check their working capabilities
Next comes the selected candidates will have interview with GM who will judge the technical skills
of candidate, followed by the interview with HR manager who will analyses behavioral skills , if he
clears all of these then he will be hired and requisition will be closed
Then there will be orientation of the new employee and his PEL id will be generated and will be sent
on board
Purpose & Policy

PEL’s Recruitment Policy has been formulated with the objective to ensure transparency and
fairness without any bias, favoritism and discrimination in the hiring process. In order to provide
equal employment opportunity to all individuals, employment decisions at PEL will be based on
merit, qualifications, and abilities.
Where a position is vacated as a result of promotion or termination/resignation, the authorization

is valid for six months in which case approval from the Chief Executive would not be required.
If the financial compensation is more than the person being replaced, approval of the Chief
Executive is necessary.
Role of Human Resource Department
The role of HR department at PEL in the recruitment and selection process is to:
 Develop guidelines and procedures
 Provide recruiting services & and support
 Reviewing, monitoring, and evaluating the effectiveness of the selection process in meeting
Company goals and objectives
 Counsel management responsible for making final employment decision
PERFORMANCE APPRAISAL IN PEL

In PEL performance appraisal is recognized as an important element of the jobs of managers and
supervisor. It provides significant help in meeting departmental and company objective.
The Appraisal Process
The foundations of performance appraisal is provided by what the job holder is expected to do as
defined in a job description and by reference to agreed objectives. Performance appraisal
discussions are often held annually. Each employee of PEL has annual targets, which are measured
with his or her standard targets to compensate the employee on the basis of performance.
Performance appraisal is totally based on employee’s annual work performance. They also offer
bonuses and promotions to the working employees. When employees are working on projects, as
working on new product design, there may be an appraisal after each assignment but there still be

an overall review at the end of the year. They also hold meetings two or three times a year, the
main purpose of which is to review and update the objectives
Tentative Man Power Plan
Tentative Man Power Plan for the upcoming year is prepared of June, for each department, keeping
into consideration all the factors affecting final determination of next year’s Man Power such as:
 Staff strength available by grades (Organogram)
 Staff required meeting goals for the coming year.
 Staff required due to planned expansion of units
 Expected reduction in availability of staff due to changes in man power as a result of:
- Promotions to higher grades within a department
- Transfer to another department
- Attritions and resignation

HR Requisition Replacement (Budgeted)
Start the
Replacement
HOD/GM Approved HR Scrutinize Recruitme
Cost
nt Process

New Vacancy (Non Budgeted)
New Vacancy
(Non-Budgeted)
HOD / GM
Initiates and Forwards Hiring Requisition To
HR
Position Assessment & Preparing JDs
Approves and Forwards To
MD
Provides Final Approval
HR Starts the Recruitment Process

Creation of New Vacancy
Justification notice for the post is raised in case a new vacancy, over and above the authorized
establishment is being created.
The requirement is initiated by the Department Head/ concerned Director and duly vetted by
Human Resource & Administration Department before being forwarded to Chief Executive for
approval which is mandatory.
After approval has been accorded, the vacancy may be filled.
The effective date of employment is only valid for three months. In case the vacancy is not filled,
the approval will become invalid.
Procedure
Departmental Heads/Director determines vacancies well in advance, in order to facilitate right type
selection.
Human Resource & Administration Department on receiving request for induction from
Department Head advertises in reputable newspapers throughout the country specifying the
required qualification and experience for the post.
Applications received through the advertisement or any other source is serial numbered and
recorded by the Human Resource & Administration Department.
These applications are then processed by the committee comprising of a representative of the
concerned department and Human Resource & Administration Department.
Letters of the interview are issued to the suitable candidates giving them sufficient time to make
themselves available by Human Resource & Administration Department.
An Interview Board is constituted with the approval of the Chairman/Chief Executive for selection
of candidate.
Review of the Vacancy
Vacancy is reviewed to make sure the position profile reflects the requirement of the job, and is still
relevant to the needs of PEL. When the position is vacant, the first decision to be made is whether

to fill the vacancy and how this should be done. There are a number of choices available, which may
or may not require advertising. These include:
 Transfer of another person at the same level
 Internal/ external placement
 Contractual placement
 Part-time placement
 Job-share arrangements
Requirement Assessment
HR Department carefully assesses the requirements that have HOD and finalize the process of
hiring which could be done either through:
 Screening previously received applications
 Advertising new positions
 Existing employees up gradation
If previously received applications are selected, then the process “Application Screening”
otherwise regular process explained further will be followed in the same order.
Existing Employees up Gradation
The existing employees possessing requisite qualifications and experience are considered while
hiring for a post on merit basis and in competition with the outside applicants.
Candidate Assessment Form
Candidate Assessment form is used under all circumstances objectively. This assessment form gives
the selection committee a chance to record their findings based upon how would evaluate on all
the factors that are listed.
Media Selection and Advertisement

For Higher Middle Management, an advertisement, containing job specifications is given in the
leading daily newspaper. After unbiased scrutiny, the appropriate candidates are short listed and
called upon for interviews.
As a matter of rule, all skilled (2 years certificate holders), supervisory (including diploma in
Engineering and Management positions shall be advertised in the national press.
Newspaper
Advertisements
Existing Database
Personal References
Recruitment Agencies
Job Port

Hiring Process
Man Power Plan
Job Requisition
(Job Description)
Requirement Analysis
Existing Database/
Update Website for Responses
Analysis of Applications

INTERVIEW AND SELECTION
The relevant head of the department, the Human Resource Manager and CEO, conduct a written
test (if necessary), structured and unstructured interviews.
Same mode of recruitment and selection is applied for the Lower Middle Management, but the
relevant Manager and the Human Resource Manager conduct the interview and selection is made.
The unskilled labour is hired either through the existing employee’s referral or among the walk-in
candidates. They to appear in practical demonstration conducted by the Quality Control Supervisor
and after passing tests, the HR Manager conducts interview and selection is made.
Employment Offer
HR advises HOD/GM about PEL personal policies, legal rights, processes and standards. HR
department preferably makes the employment offer ensuring position are consistent with the
salary structure. The benefit package is clearly presented; and the orientation procedure.
Induction of New Employee
The induction process includes providing the new employee with information concerning facilities,
policies, benefits and regulations of the Company. Human Resource & Admin Department are
responsible for the conduct of all interviews and providing each new employee with authoritative
information concerning facilities, policies, benefits and regulations of the Company
Orientation of the Job
Orienting new employees to the job is the responsibility of the immediate superior. The orientation
process begins on the first day a new employee reports to work
Providing a proper beginning for a new employee is of primary importance in establishing a good
working relationship, in conveying a sense of importance of the job and in motivating the
employee.
Immediate superior explains his Job Description and introduce him to his coworkers and colleagues.
Probation

A candidate selected in JE to E1 is on probation for a period of three months employees in M1-M6
cadre will be on probation for a period of six months unless relaxed or dispensed with by the
Competent A.
Confirmation of Service
All new appointments in the Management staff are confirmed after completion of probationary
period of 3 months. The Department Head submits their assessment about the performance of the
candidate during the period under review on the enclosed Performa, before the completion of third
month to Human Recourse & Admin Department, who then issues the final confirmation letter to
the employee. If a particular employee fails to reach the required standard, his service may be
terminated or his probationary period can be extended by an additional one month at a time up to
a maximum of 3 months.
At PEL at the end of the probation period, the line manager upon reviewing employee initiate the
confirmation process by sending a probation report to HR where he recommends or decline the
concerned person.
Selection Board
Selection board is constituted differently for various levels of induction. Details as under:
For General Managers and Above
Chairman =Chairman/ Chief. Executive
Members = Director Concerned department
Or
Departmental Head of the concerned department.
Sr. general manager, H.R. & Admin
For Manger and Deputy Manager
Chairman = Chief Executive / Concerned Director
Or

Departmental Head
Sr. General Manager, H.R. & Admin
Another general manager (to be nominated by the Chief Executive or Sr. General Manger, H.R . &
Admin).
For Sectional Head up to Assistant Manager
Chairman = Departmental Head / Director
Sr. General Manager, H.R. & Admin
Another Sr. Manager (to be nominated by the concerned Departmental Head or Sr. General
Manger, H.R . & Admin).
For Officer / Junior Officer
Chairman = Concerned Departmental Head
Manager, H.R. & Admin
Another manager (to be nominated by the concerned Departmental Head or Manger, H.R. &
Admin).
For Unionized Workers
Chairman = Concerned Departmental Sectional Head
Manager Admin
Asstt: Manager Admin
Labour Officer
Permanent and Temporary Workers
For critical jobs, skilled workers are employed and most of them are permanent. During layoffs,
they are transferred to other departments to bring the number minimum in each section

Temporary workers are employed for about 6 months, and when the season concludes the
temporary workers are laid off. Temporary workers are employed as helpers and assigned those
jobs where skills are not required.
Sometimes it happens that a very sharp and intelligent worker is employed among temporary
workers, so he is preferred over those permanent workers who have been made permanent only
on the grounds of time spent in the organization.
Workers are divided into different teams based upon their skills and nature of job. The team is led
by a head worker who is responsible for the work assigned to his team by the supervisor Here the
basic stress is upon group assignments in case of the workers level as it has already been proved
that a worker is more productive if he is working in a group. The head worker has to procure raw
material for his team and direct the fellow workers to perform the assigned task. These teams are
masters of their jobs. Within a team tasks have been assigned in a sequential order and every
individual is assigned a specific task. However within a team, task assignment changes as per head
worker's discretion. This activity not only helps productivity but also helps the quality standards of
the workers as each of them tries to keep an eye on the other to see that he is performing correctly
because if anything goes wrong, the blame goes to the whole group.
Number of workers varies in different teams depending upon the nature of jobs. For example pre-
assembly team has more workers than the cleaning team.
Plastic section has machine operators, machine helpers, packing helpers, trimming helpers, etc.
These specific teams are adept at their work and lot of time is saved plus rejection rates are
minimum in all areas
PROMOTION POLICY
An employee can only be promoted when there is a vacancy in the higher grade of the
organizational chart or position in which he is working is being upgraded.
Merit is the only criteria for promotions. Seniority will be taken into consideration only when
everything else is equal.
Promotion is normally considered at the time of granting the increments i.e. 1st of July. In case of
an opening that needs to be filled immediately; the head of department initiates the case to P & A.

Up to supervisory level employees, General Manager concerned and General Manager (P&A)
decide.
In order to give importance to the event, the employee concerned is also interviewed.
For promotion of officer cadre and above, on the receipt of case, General Manager (P&A) arrange a
meeting of Management Committee where the candidate may be interviewed.
INCREMENT POLICY
All confirmed employees are allowed annual increments in the month of July.
All normal increments are granted to employees who have completed one year with the company.
If service is less than one year then increment is granted in proportion of the length of service
during the year.
Full normal increment is equal to the time scale of the grade in which the concerned employee is
placed.
BONUS
In order to motivate the workers and gain optimal efficiency, incentives and increments in salary
programs are offered both to workers and officers.
Every worker can be promoted to supervisory level. For this purpose his performance is checked
and if satisfactory he is given Rs. 100 extra in addition to his basic salary.
From executive up to general manager level, two bonuses are given equal to two months basic
salary.
From workers to junior executives level, bonus equal to 156 days of basic salary are given on yearly
basis.
TRAINING AND DEVELOPMENT

To meet the training needs of individual employees, training programs are arranged with in house.
Training Need Analysis
Training needs for staff are identified by the departmental head concerned each year banded on
the following record:
 Background of the employee which includes job Description and individual training record.

 Performance appraisal
 Behavior of the employee
 Employee’s output (self-appraisal)
 Counseling record.
Quality System Training
H.R & Administration Department with the coordination of concerned departmental head prepare
training program for Quality System.
All the related arrangements for attending the quality training courses are made by H.R &
Administration department.
Departmental Head may also arrange indoor quality system training at their own under intimation
to H.R& Administration Department.
Training Record
In case of certificate issued by the training to the person attending the course or from the HR &
Administration department for internal training, photocopy of the same is put in the personal file of
the concerned employee
PERFORMANCE APPRAISAL POLICY
The work performance of all categories of employees is assessed through annual performance
appraisals. Apart from the annual performance appraisals three mire counseling meetings in
quarterly basis are also held with each employee by his immediate superior to help him to improve
his performance productivity. This to-way communication results in better understanding and
mutual trust among superiors’ and subordinates.
Procedures for Annual Appraisal Report
Annual appraisal forms are submitted on the attached format in respect of all management
employees of the company.
Appraisal forms will be dispatched vie HR &Admin Department to all departmental heads for
initiating appraisal in the first week of July every year.

Channel of initiating of appraisal wills be as under,
 Chief Executive for Executives Reports to him directly.
 Director for all G.Ms/Departmental Heads.
Head of Human Resource &Admin for all concerned Departmental Heads. After necessary
endorsement of concerned Executive Director’s or General Manager, the Appraisal forms will then
be sent to H.R & Admin Department who in return will forward these to the Chief Executive for his
approval
The Management regarding quality system assesses the needs of internal auditors and arrange the
training as per requirement i.e. audit planning, preparation of check lists, assessment of audit
collection of objective and reporting of the audit results.

OTHER PRIVILEGES
Provident Fund
For provident fund the company has scheme of 10% contribution by employees and 10%
contribution by the company
Performance Awards
In order to keep up the morale of the workers up to executive level, 24th of December is celebrated
every year as annual day when gifts are given to the best attendants and the most regular person. A
special performance award is also given to the employees who perform an extra ordinary job.
Loans
Loans are given from the provident fund of the employee. Car loans are given to executive level
officers and 10% contribution is made by the employees too.
Conveyance Allowance
In case of any official work Rs. 3/km is paid for car and Rs.0.8 for motorcycle.
Workers Concession Shop
There is a workers concession shop where flour, ghee, sugar, soap, etc. is provided to the workers
at subsidized rates.
Pilgrimage Facility
The company arranges Pilgrimage for 3-4 persons annually.
Group Insurance
Workers are insured by the Company. All premium amounts are paid by the company.
Canteen Facility
The Management of PEL believes that primary condition for good health is nutritious food. So it is
prepared under most hygienic conditions in the company and is served at highly subsidized rates.
Uniform and Locker Facility

Workers are given two uniforms in one year and they are provided with lockers in order to provide
safety to their personal things in the factory premises.
Incentives
The incentives can be split into two categories:
 Short Run Incentives
 Long Run Incentives
Short Run Incentives
The company offers different types of short run incentives to motivate its employees. Among them,
the more important are listed below;
o Bonus (Normally given once a year)
o Increments (Normally given once a year)
o Promotion (Based on performance)
o Traveling allowance (For those who go out for company's business)
o Leave fair allowance (Annual leave with one month's extra salary)
o Pilgrimage Facility.
Long Run Incentives
Apart from the above mentioned short run incentives, the company also provides long run
incentives like.
 Group Insurance
 Old Age Benefits
 Benefits/ Facilities for Unionized Employees
Benefits/ Facilities for Unionized Employees
 Minimum wage Rs. 6000/-(for un-skilled workers as per Gov. rules)

 Bonus/excreta as per agreement
 Bonus month (one basic salary)

 Provident funds per company policy
 Casual leave as per agreement
 Annual leaves as per government policies
 Sick leaves as per government rules
 Over time as per government rules
 Recreation as per agreement
 Workers profit participation fund as per government rules
 Dowry Rs.5000/-in case of marriage of employees daughter
 Labor welfare fund to compensate needy and deserving workers
 Meal company maintain canteen on subsidize rates
 Education cases per government rules and regulations
 Social security as per government policies
 Old age benefits as per rules and regulations
 Group insurance as per rules and regulations
 Free electric units for employees as per agreement with the union
 Maintain accommodation free for bachelor’s accommodation with all
utilities
 For family as per company rules
 Bicycles on easy installments (as per agreement with
union)
 Electric fan as per agreement with union
Management Committee
It has been decided to institute a committee to exercise ,control and facilitate management
participation to ensure the smooth functioning of the mills in order to ensure highest rate of
production ,profitability, harmony, and related activates.

INTERNATIONAL RELATIONS AND ADMINISTRATION (IR&A)
IR&A is a department of PEL which deals which all the issues related to the workers and employees
of the PEL. IR&A includes different sub departments which includes:
1. Personnel
2. Administration
3. Training and Development
4. Legal affairs
5. Civil works
6. Security

Hierarchy of IR&A Department
CEO
GM IR&A
IR
Team Lead IR
Sr IR&A
Executive
Asst. IR IR&A Asst. Welfare

Exectuive Exectuive Officer
Incharge
Dispensary
Asst. IR
Executive

Personnel:
Personnel department arrange the recruitment and selection of workers and employees up to the
grade of S1. It also updates the information of each employee in its software EMS (Employee
Management system) attendance sheet, salary sheets are also updated by this section.
 Absentee statement for each month, required to prepare the salary, is forwarded to
Accounts well before the last date of each month
Minimize absenteeism even by taking disciplinary action against defaulters. As result of disciplinary
actions taken by IR&A:
 Absenteeism in staff reduced from 2.08% to 1.55% in Year 2014.

 Absenteeism in workers reduced from 4.91% to 3.63% in Year 2015
Arrange orientation and induction of recruited / selected personnel.

 All new entrants up to grade E-1 are provided orientation for one day at IR&A
 All new Managers are provided minimum four days orientation across the factory
 Induction procedure is done as per ISO requirements
Ensure that the working force remains within the approved strength.
 No appointment against a new vacancy can be processed without the approval of
the MD
Absenteeism (Staff)

Year2015
YEAR 2006
2.5
% of staff on leave or
2.32
2 2.08
1.74 1.69 1.68 1.64
1.58
absent
1.5 1.5 1.431.55

1.28
1
0.5
0.32
0
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Month
Absenteeism (Workers)
Year
YEAR 2006
2015
% of workers on leave or
6
5 4.91
4 4.14 4.27 4.33 4.24 4.05 4.14 3.98 4.11
3.85 3.743.63
absent
3
2
1
0
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Month
Monitor gate In and Out working regarding material, employees and guests.

 Gate office has been strengthened to make all four gates operational and to ensure
hassle free movement of employees and goods carriers inside or outside the factory
 It was decided to keep the gates closed during the lunch break to stop unauthorized
exit of workers
 Gate Pass for employees in executive cadre was introduced and is being followed
religiously
1. Administration:
The administrative work includes verification of medical, conveyance and expense bills, smooth
conduct of visits and protocol duties, oversee reservation of air passages and hotel bookings,
exercise control over factory transport, maintenance of mess & canteen.
Devise system for smooth administration.
 Procedures for administrative matters are streamlined with necessary documents
required for the execution.
 Computerization tracking of the medical, traveling and entertainment bills have been
made possible and further improvement is underway.
Provision and maintenance of office equipment and furniture / fixtures. Ensure smooth conduct of
visits and other protocol duties.
 Visits are arranged for different education institutions and government departments.
 34 visits from educational institutes and Govt. & private sector were accommodated
during the year 2014
 Each visit is given a detailed multimedia presentation on PEL
Oversee reservation of air passages, hotel bookings etc.
 Reservation of air tickets for traveling abroad or locally are ensured even at very
short notices
 357 domestic and 74 international air tickets were arranged during the year 2014
 Room(s) reservation for PEL employees and guests is always done accurately and
timely as per the entitlement of the individuals
Exercise effective control over stationary & printing expenditures. Check and ensure cleanliness of
the factory and offices. Ensure up-keep and maintenance of lawns. Coordinate and organize

effective firefighting teams and equipment. Firefighting teams are established in all departments.
Several firefighting drills are organized randomly for these teams.
Over 600 fire extinguishers in the factory are maintained in perfect working condition and an on-
time refilling is ensured always
2. Training and Development:
This department provides trainings to all the employees who are selected by their employer
3. Legal Affairs:
This department deals with all the legal affairs of PEL including criminal cases, labor cases, dealer
cases, tax cases, miscellaneous cases.
Types of court-cases Legal Affairs office deals in:
 Criminal Cases
Theft, murder committed against the company employees etc.
 Labor Cases
Filed by the employees
 Customer Cases
Filed by the general customers against PEL
 Dealer Cases
Filed by the dealers or filed against the dealers
 Tax Cases
Professional tax
 Miscellaneous Cases
Filed by the company or filed against the company
4. Civil works:
This department is responsible for all the civil work of PEL which includes construction of buildings
and roads etc.
 24 Projects worth 51,579,200.00Rs started in year 2006 or before were completed.
 33 Projects worth 92,510,479.00Rs started in year 2006 or before are in process.
 Stylish new offices for Appliances Division have been constructed and furnished with most
modern office furniture & fixtures.
 Construction of building for Power Division’s offices is in process.

 Roads inside the factory especially of PD and road from FG Store (AD) to IR&A’s office were
paved
5. Security:
Security department includes security of factory, security of stores in Lahore, security of chairman
residence, security of director’s residence, security of loading appliances on trucks etc.
RECRUITMENT AND SELECTION

Recruitment is the process of identifying that the organization needs to employ someone up to the
point at which application forms for the post have arrived at the organization. Selection then consists
of the processes involved in choosing from applicants a suitable candidate to fill a post.
Key Function Performed by IR&A
 Develop and maintain recruitment sources through internal data base, employee references,
other means and update the CV databank accordingly
 Administer/coordinate for pre-employment tests, interviews and provide feedback before
and after interview
 Orientation presentation to new inductees up to S1 Grade
 Assist in development and maintain head count/recruitment status, turnover analysis or any
other report
 Coordinate for internship programs and provide support for related operations like letters
and certificates issuance etc.
 To prepare and update JD’s, organ charts and support in processing annual performance
review of staff NG to S1
Recruitment by IR&A
Types of Recruitment from NG to S1
1. Permanent recruitment
2. Temporary recruitment
3. Apprenticeship
Recruitment Procedure
 Recruitment form is initiated

 Generate candidate pool via internal or external recruitment methods (mostly internal and
employee referrals) (Personal contact recruitment)
 CV’s are shortlisted
 Pre-screening interview (on call)
 Generic test is conducted
 Technical interview with immediate supervisor
 Appointment letter, joining report and induction form are issued
 3 months’ probation period for permanent employees and a 3 day training/technical
evaluation for temporary employees
Note: temporary employees are usually seasonal employees that are hired from march-august and
are than laid off. They are not given any appointment or induction letter. Moreover they are not
entitled to benefits like provident fund, group life insurance and bank account opening.
APPRENTICESHIP
Purpose:
According to the Apprenticeship ordinance, 1962 it is the obligation of our company to have
apprentices in the proportion of a minimum of twenty percent (20%) of the total number of
persons employed in apprentice able trades on an average.
Rules
a. Enrollment shall be made twice in a year i.e. in the months of April & October.
b. The minimum and maximum age for enrollment as an apprentice shall be 16 years and 20
years respectively.
c. The minimum educational qualification for an apprentice at the time of enrollment shall vary
from trade to trade (Matric/Middle).
d. Manager Personnel shall conduct the interview of all candidates and forward them to the
manager of concerned department for interview/joining.
e. Recommended candidates will have to fill in the following forms,
i. Enrollment
ii. Induction
iii. Joining

iv. Apprenticeship Contract
f. Total duration of Apprenticeship consist of four semesters (6 months per semester) in which
candidate will perform one year practical training in Factory and one year theoretical training
in Govt. Apprentices Training Centre (semester wise).
g. Concerned department will prepare comprehensive training schedule for all apprentices
according to their trades and provide the same to IR&A department. Training progress of the
apprentices will be intimated by the concerned department to Manager Personnel (IR&A) on
bi monthly basis as per attached Performa.
h. IR&A department will closely monitor/review the progress/performance of apprentices from,
i. Concerned department on bi monthly basis.
ii. Govt. Apprenticeship Training Centre based on semester wise result.
i. In case the progress/performance is found unsatisfactory, written warning will be issued to
particular apprentice which may lead to the termination if not improved till next review date.
j. The company shall pay a monthly stipend to all apprentices as follows,
1st Year of training = 3500Rs. /-
2nd Year of training = 4000Rs. /-
DESCRIPTION OF RECRUITMENT AND SELECTION AT IR&A
Appointment
a. Each candidate is given a Letter of Appointment (in duplicate) specifying his terms and
conditions of service.
b. The candidate is issued Letter of Appointment after he has cleared his medical
examination conducted by the Company’s Doctor or a Doctor nominated by the
Company. However, in special cases, the candidate may be issued letter of
appointment before he has cleared his medical examination but he shall not be
confirmed without clearing medical examination.

c. A candidate may be appointed as a Junior Executive/Executive against a regular
position or as a trainee for a period specified in the Letter of Appointment.
Induction
The appointee shall report to HR&A Department on the 1st day of his duty. The Manager HR&A
shall brief the candidate regarding various policies, procedures and benefits
applicable/allowed to respective category of Executives. However, in case the appointee is
placed in JE Grade, Sr. Labor & Personnel Officer shall brief the candidate. Thereafter, the
appointee shall be sent to his Department to meet with his Head of the Department who shall
brief the appointee regarding his job, working practices and also introduce to his immediate
Reporting Officer.
The reporting officer shall introduce the appointee with his colleagues.
Probation
a. An appointee is initially kept on probation for a period of three months in case he is

placed in JE to E-I grade and for a period of six months in case he is placed in M-I to
M-V grade unless otherwise specified in the Letter of Appointment.
b. In case, an Appointee fails to come up to the desired standards, his probation may be
extended, at the discretion of the Company, in order to give him a chance to improve
his performance or he may be terminated.
Confirmation
a. On successful completion of the probationary period, the Company shall inform the
Junior Executive/Executive, in writing, about his confirmation.
b. On successful completion of the training, the trainee shall be placed in a proper grade.
c. On confirmation, in case of new Appointee and on placement in proper grade, in case

of trainee, a permanent Identity Card shall be issued to every executive. The card must
be displayed on prominent body place while staying in the factory premises.

d. The probationary/training period served by an executive shall be taken in to
consideration while computing his total length of service.
Separation
a. Termination
(i) During the probationary / training period, an Appointee’s / Trainee’s service

may be terminated at any time without assigning any reason.
(ii) The services of a junior executive/executive may be terminated by giving
notice of termination, in writing, as per the Letter of Appointment or salary in
lieu thereof.
(iii) Notice of termination shall become effective as specified therein.
b. Retirement
A junior executive/executive may retire from the services of the company on

attaining superannuation i.e. 60 years of age.
c. Dismissal
A junior executive/executive may be dismissed from service if found guilty of

misconduct as specified under the rules. Such employee shall not be entitled to any
notice or pay in lieu thereof.
d. Resignation
(i) A probationer/trainee may resign from the service of the Company by giving
24 hours’ notice in writing.
(ii) A confirmed junior executive/executive may resign from the service of the
Company either by giving notice, in writing, as per the terms of appointment
or depositing salary in lieu thereof.
TRAINING AND DEVELOPMENT AT IR & A:

The project assigned to me was regarding training and development. PEL major training is focused
by creating awareness for employees and that’s done internally but they do conduct training
external to PEL environment as when necessary.

Major Benefits/Effects of Training
 Training is a recruiting tool. Training helps your business run better. Trained employees will
be better equipped to handle customer inquiries, make a sale or use computer systems.
Training promotes job satisfaction. The more engaged and involved they are in working for
your success, the better your rewards.
 Training is a retention tool, instilling loyalty and commitment from good workers. Staff
looking for the next challenge will be more likely to stay if you offer ways for them to learn
and grow while at your company.
 Training adds flexibility and efficiency. Teach them to be competent in operations. This will
help keep them interested and will be enormously helpful to you when setting schedules or
filling in for absences.
 Training is essential for knowledge transfer. It's very important to share knowledge among
your staff. If only one person has special skills, you'll have a tough time recouping their
knowledge if they suddenly leave the company. Spread knowledge around — it's like
diversifying your investments.
 Training gives seasonal workers a reason to return. Let seasonal employees know there are
more ways than one to contribute. Instead of hiring someone new, offer them a chance to
learn new skills and benefit from their experience.
 Learning and upgrading employee skills makes business sense. It starts from day one, and
becomes successive as your employees grow. The short-term expense of a training program
ensures you keep qualified and productive workers who will help your company succeed.
Training conducted by IR & A focuses on staff from NG to S1 (non-grade to supervisor). During our
stay at here the trainings conducted were:
 Receptionist
 Labors
 Guards
 Lower staff
 Mess

 Receptionist Training:
This training had been basically designed for all the receptionist that are there at gates. The
importance of this training lies in receptionist being the first person to interact with anyone coming
in, so they will be representing whole Pel in such manner.
This training was focused on
 cleanliness
 food handling
 dress code
 hygiene
 punctuality
 Labor Training:
This training is designed for all the labors for ensuring there safety and making them aware of Pel
and their culture so that they may not find any difficulty in absorbing in culture of Pel. The training
mainly focused of 5S which are:
I. Sorting
It makes them aware about how to sort useful things from useless and worn out ones from the
workplace, so that they can increase their productivity and efficiency in work.
II. Set Location
This step makes them acknowledge importance of organizing things into right order, the more they
keep their workplace organized, the better they can do their work in time and efficiently
III. Safety
This step ensures they have a proper knowledge of their personal safety as well as how can they
make their workplace safe and secure for others as well.
IV. Standardization
This is the point where they are taught to make themselves absorbed in the culture of organization
that they are taken as a standard and they can motivate others and make them learn the standard
procedures and ways of PEL
V. Sustain
After ensuring all the above points they now focus on pertaining all of them and making these ‘S’
part of their daily routine once they have adopted it .

 Stress Management for Lower Staff:
Stress as a state of mental or emotional strain or tension resulting from adverse or demanding
circumstances.
Stresses can be external (from the environment, psychological, or social situations) or Internal
(illness, or from a medical procedure).
Stress can initiate the "fight or flight" response.
 Mess Staff:
This training was designed to ensure better personal and workplace hygiene than before. And
making staff aware of general rules of mess. This training had points on
 Cleanliness
 Dress code
 Personal hygiene
 Food handling
 Food serving
COMPENSATION AND BENEFITS

Compensation and benefits is a sub-discipline of human resources. Compensation includes not only
salary, but also the direct and indirect rewards and benefits the employee is provided with in return
for their contribution to the organization.
COMPENSATION AND BENEFITS PROVIDED BY IR&A:
IR&A department provides compensation and benefits to the employees of Rank NG-S1. Minimum
salary range provided to workers is 13000-18000.
In order to provide benefits to the workers their maximum salary should b 18000. But as some of
the employees are working for more than 30 years and their salaries are obviously greater than
18000 so PEL shows that their salaries are below 18000 or equal to 18000 so that they can avail the
benefits from Govt.
But if the rank is crossed and they fall in the category of JE-M6 they are no more eligible to avail any
type of benefit from Govt.
Types of Compensation and Benefits:

1) EOBI (Employee Old Benefit Contribution)
In which four types of Pensions are included
I. Old Age Pension
II. Old Age Grant
III. Survivor
IV. Invalidity
Old Age Pension:

After 60 years employee is retired and fall in the category of retired persons who can now apply for
pension and can enjoy their pension till the last breath and after his death his widow will receive his
pension till her death and after her death if her daughter is unmarried and don’t have any source of
income she is eligible to avail the pension of her father till age of 18 but for this the employee
should have 15 years or more than 15 years of service. The minimum pension is 5250/- Rupees and
if the service is more than 15 years the pension is more than 5250/- Rupees,
The Division of the pension is according to this formula:
5% (Paid by Organization) + 1% (Deduct from the employee’s salary)
Old Age Grant:

If the service is below than 15 years than Organization will pay lump sum amount (only once) to the
employee according to their service years.
Survivor:
In Survivor the widow of the employee only get the pension of 5250Rs. Employee must have 3 years
of service
Disability:
If a person is disabled while he is on his duty then medical board will announce him disable and
provide him pension of 5250Rs. till his death.
2) Medical Facility:
Medical facilities are provided to all the employees and workers but it Is categorized in two:
1) Social security medical which is provided to workers and staff till S1
2) Medical Benefits which is provided to executives and managers

Medical Facilities for Workers and staff:
Workers can receive complete medical treatment from social security hospitals. These treatments
also include operations and surgeries.
B-2 form:
If doctors admit the worker in the hospital then the social security hospital require he B – 2 Form by
the worker that shows the amount of social security has been paid by the employer. In this case the
contribution of 3 months is required. B – 2 Form is the verification from company that the amount
has paid and social security start treatment of the worker
CC-1 Form:
CC – I Form is required if the worker is admitting in the social security hospital in serious conditions
and require an operation mostly in case of heart surgeries, Bypass, kidney surgeries, etc. In this case
the contribution of 18 months is required. This form contains the information of employee’s name,
employee’s No., social security contribution detail, etc.
Medical Facilities for Executives and Managers:
The executives and managers can get treatment from their willing place and company pays all the
expenses. They don’t have to fill any forms but they have to show medical prescriptions to the
company
3) Death Grant:
When a person is deceased following department pays funeral expenses and pension to the
worker’s family:
PEL:
Fifty Thousand to Temporary employee or worker and one lac to Permanent Employee or worker
Social Security:
PEL claims death grant for his worker to social security
75% of 18000 will be paid to the employee’s widow by social security
Labor Department
If a permanent employee expires on service then labor department (worker Welfare Board) gives
500,000 to worker’s family.
Before 2013 this amount was 300,000 but after 2014 it was increased to 500,000
CBA:

CBA union provides death grant of 100Rs to the workers who expired during the services.
State Life Insurance:
PEL insured its every permanent employee from state life insurance. This insurance is provided to
grade NG-M6
NG -- S1 JE—E1 M1 – M6
Most Probably 4 Lac More than NG – S1 More than JE –E1
Twenty Thousand
In case of natural death 4lac twenty thousand (NG —S1) will be provided to widow. But in the case
of accident in which FIR is filed then the amount will be doubled but twenty thousand will not be
doubled because its funeral expense and this expense is only one time
4) Provident Fund:
This fund is only for permanent employees. And the division of this fund is as follow:
Case 1
In this case employee is on service and he can claim this any time.
10% (Basic Salary of employee) + 10% (PEL Provident Fund)= 20%
Case 2
In this case employee claims it after retirement or after resigning. Then they will only get the lump
sum amount.
But in other case if a person is expired on service then his family will be provided insured provident
fund. And if the employee deceased at the age of 25 then the insured amount is multiplied 5 times.
And if the age is greater than 25 years then the multiplied ratio will be less than 5times.
Provident Funding Section
The provident funding section and payroll system works independently from the Finance
department. Usually the provident fund is withdrawn by the employee when he leaves the job. If it
is withdrawn during the job then it is considered as a
loan. The employee can take two types of loan, either refundable or non-refundable. The employee
has to return the loan with the markup applied on it. The loan that is withdrawn permanently is
nonrefundable. The same amount that is withdrawn is deducted from the employees account.

And the loan that is refundable is paid back by the employee in terms of installments with markup
added by the company. If the loan amount is up to 20,000Rs then it is paid in the form of cash. And
if the amount is greater than 20,000Rs then it is paid in the form of cheque.
The 10% salary is deducted from employee’s account and additional 10% is added by the company
at the end of each month and that collected amount is given to the employee at the end of his job.
For refundable loan, the installments are either 10 or 20. Zakat is deducted on non-refundable loan
i.e. 2.5% on employees contribution. If the employee wants an interest free loan then there is
a company policy that the interest free loan will be given to the employee and no interest will be
charged on repayment
5) Marriage Grant:
Two types of marriage grant is provided:
PEL:
PEL provides marriage grant to the worker’s daughter and the female employee itself. This marriage
grant includes:
 Refrigerator
 Microwave oven
Government:
Government will provide 1lac to the employee after conforming his daughter’s marriage or the
female’s marriage
6) Hajj Policy:
The employees also receive the hajj benefit according to the quota issued by the worker welfare
board and hajj policy. Every employee is eligible for hajj that has 5 years’ service experience with
PEL Group. Total 10 employees (Till E1) are sent every year. Employees are selected for the hajj
through Lucky Draw which is drawn by the president labor union.
Cost of fares and stay in Saudi Arabia during Hajj Period will done by company. Selected employees
are provided leave with pay during the period. Theses leaves are not deducted from authorized
leaves of the individual. Employees can receive hajj benefit by
 Social Security Hajj Scheme
 Labor Department Hajj Scheme

 EOBI Hajj Scheme
7) Educational Benefits:
PEL provides educational benefits to the children of workers through social security. A contact has
been done between the institutions and the company about providing free education to the
worker’s children.
Following institutions are included in this contract:
 Comsats institute of computer sciences
 CFE (Center of financial excellence)
TASKS PERFORMED AT IR&A

Following tasks were performed by us at IR&A:
 Marriages grant file preparation
 Death grant file preparation
 B2 form filling
 EOBI files verification and rechecking
 Leaves, late arrivals, absent marking of the employees as well as workers.
 Record maintain of workers and staff.
 Maintain record of vehicles (Motor Bikes & Cars) issued to employees by the Company.
 Issuing authority letters to the employees for using vehicles
 Maintaining all documents of every individual separately in files related to the vehicles
(Registration Certificate, Insurance Certificate, Certificate issued by leasing company, Dues
and payment receipt by Taxation department, Company’s Sales Certificate etc).
 Booking of Air Tickets for the employees who visit other countries on business matters,
quoting with vendors through Email for the issuance of air tickets.
 Make sure the Insurance of cars and motor bikes and all its related issues.
 Work through Excise & Taxation Department for registration of Company’s new Vehicles,
renewal of annual token tax, transfer of vehicles to employees.
 Letters for Issuance of Passes and Stickers for Commercial Vehicles to pass through security
check posts in Lahore Cantt.

COMPETITOR ANALYSIS
PEL conducts research for market share in both of its divisions i.e. Appliances as well as Power
Division.
The market for each division is divided as per the key products offered them. In the power sector
PEL is the market leader for all its products - Transformers, Switch Gear & Energy Meters.
The following pie charts depict the market shares of PEL – PD in comparison to the competitors.
Market Share: Transformer
MARKET SHARE: TRANSFORMER

Elmatec
Others
PEL
Siemens
Market Share for Distribution Transformer
MARKET SHARE FOR DISTRIBUTION

TRANSFORMER
Others
Elmetec
Transfopower PEL
Siemens

Market Share for Energy Meter
MARKET SHARE: ENERGY METER
Escort PEL
Syed Bhais
Market Share for Switch Gears
SALES
4th Qtr
PEL
Alsthom
Siemens

The market share of PEL – Appliances Division is shaky with PEL not being the leader in anyone
category. However the share for Refrigerators has increased in the recent past to 32% due to a
surge in corporate sales which can be easily credited to the new HOD-Corporate Sales, Mian Javed,
who took over in 2008. Further the Strategic Partnership with LG brings a new hope for the
appliances division.
The following pie charts depict the comparison in market share of two key products of the
appliances division – Refrigerators and Air Conditioners
MARKET SHARE: REFRIGERATORS

4th Qtr
Waves PEL
Dawlance

Market Share for PEL Air Conditioners
MARKET SHARE: AIR CONDITIONER

LG
PEL
General
Others
Market Share for PEL Deep Freezer
MARKET SHARE FOR PEL DEEP FREEZERS

PEL
Others
Haier
Waves
Dawlance

COMPETITIVE STRATEGY
The competitive strategy of PEL is that it has a wide range of products and at low prices.
PEL focuses on cost leadership strategy in its power division appliances 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 has high quality products both
in appliances and power division because most of the raw materials are imported from different
countries and these raw materials are of very high quality

FOCUSING ON COMMUNITY WELL – BEING
Sustainability' is embedded in PEL's DNA; the growth of our organization is inevitably dependent on
the wellbeing of the community in which we operate. Our tagline, "There's a PEL in every home" is
not restricted to PEL's direct presence in each home via its products. In fact, PEL makes a difference
in lot of lives through its philanthropic activities and its partnerships with different institutions
which are working to uplift the living conditions of the marginalized members of our society.
In order to raise Pakistan's ranking on human development index, PEL directs its efforts to shore up
Pakistan's Millennium Development Goals of improving healthcare and increasing provision of
education at all levels
PEL joined hands with PAKPUR in its fight against infant mortality in remote areas by improving the
reach of medical facilities to vulnerable mothers and babies. PEL endured the cost of their Mobile
Health Unit (MHU) which was initially deputed for internally displaced persons' in Bannu and
Waziristan.
Our HR team members visited the Fountain House where they were given a full guided tour of all of
their five rehabilitation centers catering to mentally challenged, drug addicts and transgender
problems. Afterwards they met the psychologists to assess employable skills of the rehabilitated
members and conducted on spot interviews. Alongside donating a significant amount to the
institution, PEL is collaborating with Fountain House management to recruit recovered members in
different fields within the organization
PEL recently partnered with The Citizens Foundation (TCF) - a non-profit organization - which is
working with the vision to remove barriers of class and improve the state of education in Pakistan.
Our employees volunteered for Career Counseling activity for Grade 10 students at a TCF school in
Faisalabad. Our volunteers enthusiastically engaged in one-to-one session to give back to the
society by helping the kids shape their lives.

SUGGESTIONS
 Underpayment
I have noticed during my internship that the employees which are currently employed under
the rank of JE and E have salaries below average, means that they are underpaid. Their
salaries are not according to their nature of job and their qualifications. The nature of job is
very tough and employees find it difficult to finish the tasks within office timings. They have
to sit there for another two to three hours averagely for the completion of their tasks.
My suggestion is this, that the salaries of the employees should be according to the nature
of job and their qualification and the salaries should be a bit higher than the current one.
 Separate Trainings for Interns

Another suggestion that I would like to give is that, there should be a separate training
session for the internees where some employees can deliver lectures to the internees about
the working of the concerned department.
 Lack of advertisement
Other competitor companies have good marketing and advertising campaigns as I observed
that near the PEL there is a great sign board of Waves.
 System variations
PEL should have to adopt the one system, they have to train
their employee as well. Training procedure must be change. Thereshould be the
presentation to all workers.
 Lack of Product range

They should have to increase their product range as their new competitor SAMSANG in
appliances has a lot of product range so they also have to increase their products.
 Must Offer Frequent Internship Opportunities

PEL should open its internship programs on frequent basis so more and more students can
get the chance to work as an internee in such a huge institute and get their relevant work
experience.
 No Job Rotation
There is no rotation of job work so one person is limited to his work.
PEL more focus should be on electronic media to get competitive advantage over the competitors.
They have to increase their advertising expenditure

CONCLUSION
Overall it had been a nice experience being part of PEL team, there had been a cooperative staff.
Supervisors have been really humble and cooperative, along with that they were always there for
career counseling. Beside that every employee was readily available for any guidance whether
he/she was your supervisor or not. A healthy work environment was provided to all interns to grow
and nourish their appetite for learning.
Strong brand name has very good impression in consumer’s mind and they usually prefer to
purchase the same brand which they believe that is awesome. As now a day consumer’s demand is
for Haier & Dawlance refrigerator. People have strong faith in these brand names. All other factors
like price, advertisement, word of mouth and even dealers are secondary importance in this regard.
I believe that PEL is focusing more on Push Strategy & Dealers network rather than Pull Strategy to
create consumer demands in the market. PEL is not targeting through effective advertising,
coordinating marketing efforts and using advanced interactive communication tools.
Although PEL is doing some advertising efforts but problem is that there is no creativity in ads. No
doubt PEL is making excellent products, but unfortunately PEL is not realizing creative advertising is
also important part of their Marketing success.
In PEL the top level management is centralized than the middle or lower level. So there is
imbalance between responsibilities and authorities in the lower level. This causes dissatisfaction in
the middle or lower level officer. Promotion in lower and middle level is usually based on age not
on performance. Rate of promotion is also slow. So the employees again feel dissatisfaction.
Incomplete training system of workers was another problem


Pel Internship Report

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Pel Internship Report

Încărcat de

Drepturi de autor:

Formate disponibile

Internship Report on “Pak Elektron Limited” 2016

June 27, 2016 to August 8, 2016

INTERNAL RELATIONS AND ADMINISTRATION (IR & A)

Institute of Business Administration, Punjab University

IBA, University of the Punjab

Dedicated to my family and all those who helped me in this internship.

IBA, University of the Punjab

IBA, University of the Punjab

IBA, University of the Punjab

IBA, University of the Punjab

They say they are here to “Change your Life”.

The company comprises of two divisions

IBA, University of the Punjab

IBA, University of the Punjab

IBA, University of the Punjab

The company comprises of two divisions:

Zonal Offices in Pakistan

IBA, University of the Punjab

IBA, University of the Punjab

IBA, University of the Punjab

MAIN CUSTOMERS OF PEL

 AJK Electricity Department

IBA, University of the Punjab

IBA, University of the Punjab

IBA, University of the Punjab

 A high visibility level.

 Heightened awareness amongst the target market.

 Minimum cost for maximum projection.

 Upgrade teaching abilities, skills and knowledge of teaching staff.

 Upgrade teaching equipment to the required standards.

 Enhance the participation of private Sector in training activities at Management level.

IBA, University of the Punjab

 Parent Company - Pak Elektron Limited

 Subsidiary Company - PEL Marketing (Private) Limited

Power Division: manufacturing and distribution of transformers, switchgears, energy meters,

Appliances Division: manufacturing, assembling and distribution of refrigerators, air conditioners,

Saigol Group of Companies

IBA, University of the Punjab

Initial Capacity: 25,000 spindles

Current Capacity: 71,648 spindles

Saritow Spinning Mills & Azam Textile Mills

Fuel and Energy

Kohinoor Energy Ltd.

Banking and Finance

Union Leasing Ltd.

IBA, University of the Punjab

Saigol Computer Ltd.

 Preece, Cardew & Rider, England

 SNAM Progetti, Italy

IBA, University of the Punjab

 Miner & Miner International Inc. USA and many others.

It is also an ISO-9002 certified company in compressors and energy meters.

IBA, University of the Punjab

IBA, University of the Punjab

Key Milestones for PEL

PEL established in 1956 the assistance of Fujitsu, PEL signs agreement

1950 1960 1970 1980 1990 2000 2009

IBA, University of the Punjab

 Incoming and Outgoing Panels

 Motor Control Centers

 Motor Protective / Starting Stations

 Unit Type Distribution Boards

 Automatic Power Factor Improvement Plants