Internship report on AGRICULTURE

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Internship Report on Agrimall (Private) Limited A Project of Ali Akbar Group

Presented To:

Prof. Hafiz Abdur RasheedProfessorHailey College of CommerceUniversity of the Punjab, Lahore.May 20, 2015

Presented By:Saeed AhmadBC11- 634B.Com (Hons)Semester: Eight (8th) Session: 2011-2015Hailey College of CommerceUniversity of the Punjab, Lahore.

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Letter to the Teacher about the submission of report

Professor Hafiz Abdur Rasheed

Hailey College of Commerce,

University of the Punjab, Lahore.

Subject: Submission of the internship report.

Respected Sir,

Being a reasonable student, I want to oblige my honorable and ambitious

teacher.

Whose heroic step found our hidden capabilities and save us from brain rust and

provide us a chance to explain and elaborate this intern ship report.

I feel immense contentment in presenting to your good self, the internship report

as a part of our course requirement. I find this report truly exigent in many

aspects, certainly very appealing in relation to the diverse interpretational and

enthralling exercises. Writing this report itself was thoroughly a comprehensive

learning experience. The report covers detailed background and introduction of

Agrimall (Pvt) Ltd (A Project of Ali Akbar Group). A major theme of this internship

report is awareness of Introduction and Historical Overview, organizational

structure, Accounts Department work of Agrimall Private Limited Lahore. I have

tried my level best to complete the report with respect to the prescribed format.

However, if any explanation is required, I would be honored to oblige.

Yours sincerely,

Saeed Ahmad

Roll No.BC11- 634

Hailey College of Commerce

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Acknowledgement

I started and finished internship by the grace of ALMIGHTY ALLAH (AZA WA

JAL). Without the kindness and the mercy of ALMIGHTY ALLAH (AZA WA JAL) I

can’t able to do any kind of work. I would like to express my heartiest gratitude to

Mr. Nouman Ali (Accounts Officer), who is busy person but he guided me with full

concentration and commitment. He never scolded on mistakes but taught that

what is right and wrong.

Also, I am especially thankful to Mr. Muhammad Sikandar Area Sales Manager,

who guided me throughout the internship and being an old Hailian encourage me

a lot. I’m also really very thankful to Mr. Tahir Nazir (Business Development

Manager) for his support, information, co-operation, advice to complete my

internship report. I would like to thank all of them for their constant

encouragement, warm response and for filling every gap with valuable ideas that

has made this report successful.

The employees of this company were also very cooperative and give full respect

to me during the period of internship.

Executive Summary

This internship report is focused on information collection and fact finding in the

working of promoting and providing agricultural inputs like seeds, fertilizers,

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pesticides, tractors, agricultural implements, diesel etc. I learn all the processes

of the organization.

Doing internship in Arimall Private Limited was a great experience for me. People

there were so cooperative and they guided me a lot in every aspect of my work. I

was sent to the different departments and there I learnt different things from the

experience of people working over there.

Agrimall is the project of Ali Akbar Group and boards of directors of Ali Akbar

Group are:

Chairman

Major Retired Ijaz Muhammad Khan

Senior Director

Ch. Shafat Ahmad Khan

Director Seeds

Ahsan Akbar Khan

Director AAE

Ausaf Akbar Khan

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Director Sales and Marketing

Saad Akbar Khan

Management plays a vital role for the development of the organization. Management of

the organization as follows which is utilizing the resources in an efficient way

Mr. Afaq Tiwana (CEO Agrimall)

Mr. Asif Latif Lone (GM Projects)

Mr. Irfan Hussain (GM Finance)

Mr. Malik Farooq Ahmad (GM Sales & Marketing)

Mr. Tahir Nazir (Business Development Manager)

Mr. Muhammad Sikandar (Area Sales Manager)

Mr. Saood Ahmad (Accounts Manager)

Mr. Muhammad Nouman (Accounts Officer)

Table of ContentsPage No.

Overview of the organization …………………………………… 08-22

Brief History

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Vision of the organization

Mission of the organization

Values of the organization

Nature of the Organization

Product lines and brand portfolio of the organization

Strategies of branding used by the organization

List of Main clients

List of main competitors

Organization structure…………………………………………………23-38

Organizational hierarchy chart

Number of employees

Head Offices

Introduction of all departments

Prospecting

Franchise’s Profile

Comments on the organizational structure

Plan of My Internship……………………………………………………39-40

A brief introduction of the branch/head office where I did my

internship

Starting and ending dates of my internship

Names of the departments in which I got training and duration of my

training.

Training Program………………………………………………………….40-43

Detailed description of the operations/activities performed by the

department(s) in which I worked.

Financial Analysis……………………………………………………… 44-58

Financial Management

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Support Accounting

Provide Decision Information

Risk Management

Improve Operations Control

Financial Statements Analysis Tools

Ratio Analysis and Characteristics

Interpretation of Financial Ratios

Financial Statements……………………………………………………59-63

Balance Sheet

Income Statement / Profit and Loss Account

Cash Flow Statement

Statement of Changes in Equity

SWOT Analysis…………………………………………………….. 64-66

Conclusion………………………………………………………….....66

Recommendation……………………………………………..…….67-68

References and Sources…………………………………………….69

Overview of the Organization

Brief History of the Agrimall Private Limited

Agrimall Private Limited is a joint venture Company of Mr. Afaq Tiwana (CEO),

Ali Akbar Group, Millat Tractors Limited, Pakistan State Oil Company Limited and

Engro Chemicals Pakistan Limited, incorporated in April 2003 with the concept of

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providing agri services and inputs through a chain of franchise network under

one roof.

Four top farm input supply companies (Engro, PSO, Ali Akbar Group, Millat

Tractors) have joined to form one marketing company –Agrimall – which will

provide all the inputs needs of farmers from a chain of outlets stores- right down

to union council level, covering a few villages closest to the farmer. Provision of

small credit to farmers through Agrimall has been added to this value chain,

making it a unique solution provider for all farmer requirements. And all this is

provided through a branded network of uniform outlets which the farmers will

learn to identify and trust instead of myriad shops they have been dealing with so

far. Farmers have to contact one facility in their neighborhood to meet all their

needs-inputs and services including credit.

Agrimall opened its first outlet in 2005 and currently there are over 53 Agrimalls

in operations. Another 86 sites are at different stages of development.

Agrimall has designed standard specifications for the outlets stores. These

specifications include:

1. Area and location criteria for the outlet facility.

2. Unique and uniform layout plan and building designs.

3. Inventory of machinery and equipment available for rental.

4. Inventory of office furniture, fittings and equipment to be used to run the

outlet.

5. Staff required to manage the facility, with qualifications and training

schedules.

6. An integrated office management system with detailed process flows

called “Standard Operating Procedures”- SOP`s

7. Budget projections of investment, credit needs, sales, expenses, cash

flows and profit projections.

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Agrimall Private Limited does not own these outlets. All these outlets are

outsourced. The ownership and the management of the retail facility are given to

individual entrepreneurs locally. These owners enters into a contractual

agreement for undertaking the ownership and operations in strict accordance

with the specifications and SOP`s lay out by Agrimall. This outlet is a

“FRANCHISE” and it is independently owned and operated business, with its

own financial accounting and its own personnel. The sales and front-end will be

managed and run by the FRANCHISEE. The back end sourcing and ordering of

products, managing of accounts and finances, license agreements,

arrangements for building of facilities, SOP`s and system support is handled and

managed through Agrimall`s corporate/ regional offices and its field staff. The

contractual agreement between the Agrimall and the operator is called the

“FRANCHISE”. From here onwards Agrimall is referred to as “FRANCHISOR”

and the operator as the “FRANCHISEE”.

Our Mission

To help farmers, maximize their productivity and profitability through a formal &

efficient network for Agriculture inputs, products & services; all under one roof at

AGRIMALL.

Our Vision

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To be the best agricultural network in Pakistan, dedicated to serving the farmers

and helping our business partners to achieve excellent returns on investment. To

deliver consistent growth by introducing new ideas, and to consistently

strengthen the AGRIMALL brand.

Our Values

To provide leadership, team work, quality & continuous improvement support to our business partners with high energy, passion, integrity and enthusiasm.

Nature of the Organization

A joint venture company of Pakistan State Oil Company Limited, Engro

Chemicals Pakistan Limited, Ali Akbar Group and Millat Tractors Limited

engaged in the business of providing agri services and products of venture

companies through a chain of nationwide franchisees under the brand name

of “Agrimall Zarai Markaz”.

Agrimall provides the following products and services through its chain of

outlets at the union council level.

1. Branded seeds

2. Branded fertilizers

3. Branded crop protection chemicals

4. Fuels and lubricants for farm machinery

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5. Top quality farm machinery and spare parts for rental and sale

6. Agriculture credit for farmers facilitated through on-site bank presence

7. Technical guidance for crop planning and production.

Product and Services lines and brand portfolio of the organization

Services

Development Credit

Running Finance & Guarantees

Farmer’s Production Loan

Technical Services

Customer Relationship Management

Farm Management

Training

Products

Pesticides

Crown 70 WS

Pujing 10 EC

RootMost Tonic

Top 330 33 EC

Carbendazim 50 WP

Pilot 4G

Cure 1.8 EC

Rani 20 SI

Saomanging 15 EC

Triazophos 40 EC

Clipper 50 WP

Sitara 25 WP

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Helmet 40 EC

Relax 50 EC

Selector 40 EC

Weedout 40 EC

Furan 3G

Thiophenate Methyl

Leopard 2.5 EC

Resham 10 EC

Timer 1.9 EC

Carbaryl 85 % SP

Manthane 80 WP

Tractors and Agricultural Implements

Tractors

MF-240

MF-260

MF-350

MF-375

MF-385

MF-385 4WD

Agricultural Implements

Chisel Plough [MT-01]

Disc Plough [MT-765]

Mould Board Plough [MT-02(M)]

Mould Board Plough [MT-02(H)]

Tin Tillers [MT-38/9 tines]

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Offset Disk Harrow Model [MT-03(M)]

Offset Disk Harrow Model [MT-03(H)]

Ridger [MT-05] FMA Type

Front Blade [MF-08/1] for MF240/MF260

Front Blade [MF-08/2] for MF375/MF385

Multi Purpose Rare Blade [MT-21]

Agricultural Loader [MT-11/1 (for MF-240)]


Agricultural Loader [MT-11/2 (for MF-375E)]


Farm Trailer [MT-12/2] for MF240 and MF260

Farm Trailer [MT-12/3] for MF375E and MF385

Swinging Draw Bar [MT-15]

Jib Crane [MT-16]

Post Hole Digger [MF-815]

Maschio Lawn Mower

Diesel and Lubes

HSDiesel and Lubes are used in Tractors and Generators for agriculture

use.

Fertilizers

Urea

DAP

Zorawar

Zarkhez

Zingro

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Brand Portfolio of the Organization

Our agricultural products include the treatment of crop from pests and

seasonal diseases and also for the use these products, the farmers can get

high growth and output from his crop.

We also market other products many of which are among the market

leader.

Over the counter products like LPG cylinder filling through hospitality

agreements to different marketing companies, which includes Chevron (Pak),

Lube Gas, Mehran Gas, Premier Gas and Power Gas.

Agrimall has a diverse portfolio of pesticides, fertilizers, tractors, and agricultural

implements for conditions that involve transplantation, better farming inputs.

Agrimall is also committed to developing new services at agrimall outlets like

providing the warehouse services to Competitiveness Support Fund (CSF), the

project of US AID in Pakistan.

Strategies of branding used by the organization Diversification

We are minimizing the risk by broadening our portfolio, diversifying

into new products areas that show potential, while also fully capturing

opportunities for our products across all geographic boundaries.

Specifically, we expect to generate future sales growth by strengthening our core

agriculture business and supplementing it with increased investment in growth

areas such as high crop output, to increase profit for farmer by minimizing input

cost & eliminating market intermediaries. At startup we are opens our out outlets

only in Punjab but from previous year we are also opens our outlets in Khyber

Pakhtunkhawa, FATA (North and East Waziristan) like WANA, and we have a

good response from these areas. We believe there remain many opportunities for

Agrimall Private Limited to diversify further.

Organization Future Plans

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New local & multinational supply companies for agriculture inputs.

Irrigation & water conservation technologies.

Cold storages.

Retailers of essential commodities.

Trading/Retail of general merchandise for rural community.

Crop trading

Dairy Vet, Feed & collection

Focus on the best sciences

Diversify through externalization

Focus on return on investment

Evolve our commercial model

Fulfill the potential of emerging markets

Expand our business in all provinces of Pakistan

Streamline our processes

Reduce working capital

New businesses to be added as & when necessary to ensure competitiveness

keeping in view changing market dynamics.

List of Clients (Franchisees)

List of Agrimall Franchisees

Ser No.

Code

No. NAME/ Trade Name Tehsil DistrictPSO

DivisionAgrimall Region

Location

In Business / Completed Sites

1 2224 Habib Ahmad Dogar Burewala Vehari Sahiwal SouthBurewala-Lodhran road Burewala

2 1038Intkhab Haider Khan/ Khalid harral - Ali Wali Agrimall

Shor Kot Jhang Faisalabad NorthJhang-MuzzafarGarh Road, Jhang

3 2036Ch Omer nazir / Ranjha Enterprises / AR11

Renala Khurd OkaraSahiwal

CentreLahore-Multan road Akhterabad

4 2746 Haji Abdul Ghafoor Kabirwala Khanewal Multan SouthJhang-Kabirwala Road, Kabir wala

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5 2126 Tajammal Hussain Chattha Nankana Sheikhupura Lahore CentreSheikhupura-Faisalabad Road, Feroz Watooan

6 12345 Star Farming Services- Mohd Rafi

Gujranwala Gujranwala Gjuranwala NorthGujranwala-hafizabad road, Gujranwala

7 3018Tariq Iqbal/ Thal Agro Services Agrimall

Layyah Layyah D.I. Khan SouthLayyah-Chow As am Road, Layyah

8 1928 Nisar Ahmad Chaudhry Chunian Kasur Lahore CentreKanganpur-Hujra Road, Kanganpur

9 2631 Muhammad Ilyas Duniyapur Lodhran Bahawalpur SouthMultan-Bahawalpur Road, Jallah Araiyan

10 3140Muhammad Ali Raza Khar & Saeed Langha/ Gulsulemania Agrimall

Kot Addu Muzaffar Garah Multan SouthAdda-Sanawan, Layyah-Muzaffar Garh Road, Muzzaffar Garh

11 3222Haji Muhammad Hanif/Al Khair Agrimall

Bahawalpur Bahawalpur Bahawalpur SouthJhangiwala-Bahawalpur Road, Bahawalpur

12 2124Sajjad Ahmed/ Friends Farming Services

Nankana Nankana Lahore CentreLahore-Jaranwala Road, Mandi faizabad

13 2011Mian Muhammad Iqbal/ Hanif Agrimall

Okara Okara Sahiwal CentreOkara-Noorshah Road, Okara

14 1218Chaudhry Adil Cheema/ Cheema Brotehrs Agrimall

Wazirabad Gujranwala Gujranwala NorthWazirabad-Ahmed Nagar Road, Wazir Abad

15 1932 Rana Sajjad Iqbal Pattoki Kasur Lahore CentreLahore-Multan Road, Manga Mandi

16 2322Rai Hassan Usama Khan/Rai Fayyaz Agrimall

Chichawatni Sahiwal Sahiwal CentreLahore-Multan Road Cheechawatni Bypass, Cheechawatni

17 1242Ashfaq Ahmed/ Husnain Agri Services

Noushera Virkan

Gujranwala Gjuranwala NorthGujranwala-Hafizabad Road, Nokhar

18 2314 Wasim Akhtar Sahiwal Sahiwal Sahiwal CentreSahiwal-Pakpattan road, Sahiwal

19 2114Rana Altaf Hussain/ Rellish Agrimall

Ferozewala Sheikhupura Lahore CentreMuridkay-Sheikhupura Road, Muridkay

20 O515 Ansar Bhatti & Qaiser Gondal Sargodha Sargodha Faisalabad NorthSargodha-Chaniot Road, Adda-46

21 2018Ch. Muhammad As am/ (Abul Salam Arif) Kissan Markaz

Okara Okara Sahiwal CentreOkara-Deepalpur Road, 47/2-L

22 3227 Nasir Mehmood Bahawalpur Bahawalpur Bahawalpur SouthBahawalpur-Ganwarshah Road, Shahu Channar

23 2135Ali Rizwan Bhatti/ Rizwan Agrimall

Nankana Nankana Lahore CentreNankana-Bucheki Road, Kot Hussain

24 2140Jaffar Hussain Bhatti/ Rehan Agrimall

Safdarabad Sheikhupura Lahore CentreKalsian Bhattian, Khangah-Ajnianwala Road

25 2638Saeed Jhandeer & Dr Ali Saud / Ali Saud Enterprises

Dunya Pur Lodhran Bahawalpur SouthChow Manja

26 3427Makhdoom Afqar/ Al-Makka Agri Corp

Khan PurRahim Yar

KhanBahawalpur South

Peshawar-Karachi Road, Mianwalai Qureshian

27 3220Ch. Rizwan Ali/ Bismillah Agrimall

Bahawalpur Bahawalpur Bahawalpur SouthYazman-N.H.A Road, Ghausia Chow

28 1918 Muhammad Hanif Khan Kasur Kasur Lahore Centre

Khuddiyan-Chunian Road, Khuddiyan

29 O561 Muhammad Iqbal Gondal Kot Momin Sargodha Faisalabad NorthKotmomin-Bhabra road, Kotmomin

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30 1136Khalid Malik/ Syed Mohd. Aslam Shah

Gojra T.T. Singh Faisalabad NorthJhang-Faisalabad road Nawan Lahore

31 3353 Naeem Malik / Fahim Malik Chishtian Bahawalnagar Sahiwal SouthChishtian-Bahawalnagar Road, Chishtian

32 1913Mr Zahid Muzaffar Shah/ Shahs Agrimall

Kasur Kasur Lahore CentreKasur-Gandasingh Road, Kasur

33 1324Babar Hayat Tarar/ (Khizar Tarar) Tarar Agrimall

Pindi Bhattian Hafizabad Gujranwala NorthPindi Bhattian-Hafizabad Road, Rasulpur Tarar

34 1013Abdul Mujeeb Khan/ Chenab Agrimall

Chinniot Jhang Faisalabad NorthChaniot-Sargodha Road, Chaniot

35 2130Saeed Ullah Bhango / Bhango Farming Services

Sheikupura Sheikupura Lahore CentreSheikhupur-Faisalabad Road, Kot Roshan Din

36 O956 Maj ® Liaqat Shaheen Kalyar Jaranwala Faisalabad Faisalabad NorthJaranwala-syedwala Road, 352-GB

37 O972Ghulam Qadir Awan/ Awan Agrimall

Jaranwala Faisalabad Faisalabad NorthJaranwala-Khurianwala Road, Khurianwala

38 2022 Chaudhry Saleem Hassan Depalpur Okara Sahiwal CentreHujra-Deepalpur Road, Kunduwal .Hujra ShahMukeem

392222

Tariq Nasimi/ M/s Bashir Sons Agrimall Burewala Vehari Sahiwal South Gaggo U.C 80, Gaggo Mandi-Shiekh Fazil Road, Burewala

40 1633 Ghulam Mustafa Pasrur Sialkot Gjuranwala North Daska-Pasrur Road, Daska

41 1257Basharat Ahmed Virk/ Kissan Agrimall

Kamonki Gujranwala Gjuranwala NorthSadhoki-Baigpur Road, Sadhoki Mandi

42 1635Col Yaseer Bajwa/ Talvandi Agrimall

Pasrur Sialkot Gjuranwala NorthPasrur-Kila Kallar road,Pasrur

43 2715Suhail Sikandar Khan Daha/ Daha Agrimall

Khanewal Khanewal Multan SouthKhanewal-Kohna Road, Khanewal

44 2617 Syed Akbar Ali Rizvi Lodhran Lodhran Bahawalpur SouthLodhran

45 1921Sardar Jahanzeb Ali/ Sardar Shoukat

Chunian Kasur Lahore CentreKasur-Allabad Road, Theengmor

46 1322Ch Zubair & Ch Ilyas/ Zubair Enterprises

Pindi Bhattian Hafizabad Gujranwala North Pindi Bhattiyan-Chaniot Road, Pindi Bhattiyan

47 2028 Major Zameer/ UN Enterprises Deepalpur Okara Sahiwal CentreSherGarh-Hujra Road, Sher Garh

48

1521Mohammad Shabir Ejaz/Adil Shabir (apr07) Malakwal Mandi Bahudin Jhelum North Village Chot Dheeran, Gojra-Miani Road, District Mandi Bahaudin

49 2120Rana Jameel Hassan Khan/ Prime Agrimall

Nankana Sahib Nankana Sahib Lahore Centre Lahore-Jaranwala Road, Bucheki

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0516 Nazar Hussain Sohail Sargodha Sargodha Faisalabad North Mitha-Lak, Sargodha-Kot Momin (Moazamabad)Road, District Sargodha

514016 Haji Muhammad Ayyab Bannu Bannu D.I. Khan North Bannu-Meeran Shah road

52

Zahir Abbas

Malakwal Mandi Bahudin Jhelum North Chak Nain-Ranjha, Bekho Mor Gojra Road, Mandi Bahaudin

53

1327

Maj Mohammad Arif/ M/S PK Associates

Pindi Bhattian Hafizabad Gujranwala North Thata Kanjuan, Jalalpur-Wanike Road, District Hafizabad

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Cancelled Completed Sites

1 1938 Hammad Bashir Pattoki Kasur Lahore Centre Pattoki-Bhairwal Road, Bhairwal

2 2137Major Shahab/ Shah Jee Agrimall

Sheikhupura Sheikhupura Lahore Centre Sheikhupura-Gujranwala Road, Harday

3 Haji Aslam Mughal Gojra T.T. Singh Faisalabad Centre Painsra-Gojra Road, Dwakhri

Sites Under Construction

11323 Rashid Javed/ Khalid Sial Pindi Bhattian Hafizabad Gujranwala North Hafizabad-Pindi Bhattiyan road

2 3016Malik Akhter Iqbal/ Layyah Agrimall

Layyah Layyah D.I. Khan SouthLayyah-Karorpakka Road, Haji Kotla Shah

31240

Irshad Ullah Noushera Virkan Gujranwala Gujranwala North Gujranwala-Ajnian wala Road, Chuhay wali, District Shiekhupura

41028 Mr.Tehzeeb Hussain Jhang Jhang Faisalabad North Adda Rajabad, Jhang-Chiniot road, Jhang

52521 Rana Afsar Hameed Multan Multan Multan South Basti Malook, Multan-Bahawalpur Road

62150 Babar Iftikhar Bhatti Muridke Sheikhupura Gujranwala North Hachar,Mureedke Narowal Road

7 1510Arshad Gondal/ Gondal Agro Services

M B Din M B Din Jhelum NorthSatsira-Wasu Road, Wasu Mandi Bahaudin

82713

Muhammad Zubair Rana / Rana Bakhtiar Khanewal Khanewal Multan South MakhdoomPur Pahoran Road, District Khanewal

93147 Majid Khan Dasti Kot Addu Muzzaffar Garh Multan South Adda Gormani, Layyah Muzaffar garh road (GT Road) Muzzaffar Garh

102533 Rana Riaz Hussain Noon Shujabad Multan Multan South Matotli, Shujabad Gailewal road District Multan

112138 Asim Anayat Bhatti Sheikhupura Sheikhupura Lahore Centre Makki 525, Makki Road District Sheikhupura

12 2230Muhammad Zubair Iqbal Sandhal

Mailsi Vehari Sahiwal South Mitru-Mailsi Road, Sandhal

130566 Muhammad Aslam Ranjha Kotmomin Sargodha Faisalabad North Pul Miani, Pindi Rawan road-Bhabra, Sargodha

141916 Ch. Muhammad Rafique/Saqib Chunian Kasur Lahore Centre Kasur-Kot Radha Kishan, District Kasur

150555

Mrs Ghulam Abbas Khan( Mr. Munir) Sahiwal Sargodha Faisalabad North Sahiwal-Shahpur Road, Sargodha

16 1422 Muhammad Salman Hayat Kharrian Gujrat Jhelum NorthManguwal-Dinga Road, Kot AslamAbad

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1314

Rai Javed Iqbal

Hafizabad Hafizabad Gujranwala North Chak Pillo, main Hafizabad-Pindibhattiyan Road, Hafizabad

181214 Imtiaz Ahmed Khan Wazirabad Gujranwala Gujranwala North Gakhar-Ahmed Nagar road

Pre Construction Stage

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1 O510 Habib ur Rehamn Lak Sargodha Sargodha Faisalabad NorthSargodha-Bhalwal Road, Lakmor

2 2024 Muhammad Moeen Watto Depalpur Okara Sahiwal CentreBasirpur-Head Sulemanki Road, Nehal Mahar

3 O537Farid Ahmed Khan Noon/ Kot Hakim Agrimall

Bhalwal Sargodha Faisalabad NorthSargodha-Bhalwal Road, Kot Hakim Khan

42320

Malik Faisal LangrayalCheechawatni Sahiwal Sahiwal Centre Iqbal Nagar, MianChannu-Burewala road, district Sahiwal

52027 Fahad Ali Chachar Deepalpur Okara Sahiwal Centre Chak Wazir Singh, Haveli-Hujra Road Tehsil Deepalpur, Okara

62625

Abdul Rehman Khan JoyiaKehror Pakka Lodhran Bahawalpur South Zerekh Wain, Kehror-Khairpur Tamaywali Road District Lodhran

71325 Mushtaq Ahmed Pindi Bhattian Hafizabad Gujranwala North Jalalpur-Pindi Bhattiyan Road, District Hafizabad

80535 Liaqat Ali Bhalwal Sargodha Faisalabad North Hilal Pur, Sial Mor-Gujrat Road Sargodha

92721 Mian Amjad Ali Jehanian Multan Multan South Mouza Ali Pur, Multan-Dunniya Pur Road, Khanewal

10 1512Arshad Munir Warraic / Warraich Agro Services

Mandi Bahudin Mandi Bahudin Jhelum NorthSatsira-Marala Road, Marala

Sites in Initial Stage

1 1011Sardarzada Qaim Raza Syed/ Chiragh Agrimall

Channiot Jhang Faisalabad NorthChaniot-Jhang Road, Iqbal Nagar

23433 Makhdoom Afkar II

Rahim Yar Khan

Rahim Yar Khan Bahawalpur South Kot Samaba, Khan Pur-Rahim Yar Khan Road

3 1316Dr.Mohd. Qaiser/ Kissan Services Agrimall

Hafizabad Hafizabad Gujranwala NorthHafizabad Khangah Road, Karyala

42117 Azher Virk/ Usman Agrimall Ferozewala Sheikhupura Lahore Centre Nabipur-Virkan, Pindi-Dasroad Sheikhupura

52131

Fahad Hameed Jassal/ Shaheen Agrimall Sheikhupura Shiekhupura Lahore Centre Jandiala Sher Khan, Shiekhupura-Ajnianwala Road

6 1216 Shah Nawaz Bhalli Wazirabad GujranwalaGujranwala

NorthGujranwala-Alipur Road, Klaskay

71312 Muhammad Fahad Miran Shah

South Waziristan D.I. Khan North Meeran Shah-Meer ali Road, Meeran Shah

8 1610Chaudhry Farhat Mehmood Bhalli

Sialkot SialkotGujranwala

North Sialkot-Zafarwal Road, Rasulpur Bhallian

9 3435Dr. Khurram Saigle & Prof. Dr. Abdus Salam/ Al Nusrat Agrimall

Rahim Yar Khan

Rahim Yar Khan

Bahawalpur SouthRahim Yar khan-Khanpur Road, Rahim Yar Khan

10 3225 Hafiz Muhammad Saleem Bahawalpur Bahawalpur Bahawalpur SouthAbbas Nagar, Bahawalpur-Hasilpur Road

110717 Muhammad Iqbal Khushsab Khushab Faisalabad North Qaidabad Sakesar Road

123441 Syed Nazar Mohuidin Gillani Sadiqabad

Rahim Yar Khan Bahawalpur South Basti Talib Hussain Shah, Chow Bahadr Pur-Jamal Din Wali Road, Rahim Yar Khan

130545 Mian Saif-Ur-Rehman Shahpur Sargodha Faisalabad North Jhawrian, Shahpur-Bhera Road

140519

Riaz Ameer Alias Abdul Haq Bhatti Sargodha Sargodha Faisalabad North Chak 103, Sargodha-Chiniot Road

20


152127

Muhammad Adnan Shamshad/ Rana Shamshad Nankana Nankana Lahore Centre Ahmedabad, bucheki-Nankana Road, Nankana

160564 Asif Farrukh Kot Momin Sargodha Faisalabad North Chow Midh Ranjha, Sialmor-Phalia road

174114 Sher Mohammad Meeran Shah

North Waziristan D.I. Khan North Meeran Shah-Meer ali Road, Meeran Shah

183145 Abdul Khaliq Khar Kot Addu Muzaffar Garah Multan South Muzaffar Garh-Jhang Road

190725 Chohdary Bilal Sabir Nurpur Thal Khushab Faisalabad North Adda Qadirabad, Chow Groth-Aadhi Kot Raod

201311 Rai Irshad Ullah Hafizabad Hafizabad Gujranwala North Chow Bangar, Kaleki-Jalalpur Bhattiyan Road Hafizabad

215718 Shoaib Bashir Siddiqui Mirpur Sakro Thatha Karachi South Goth Sultanabad, National Highway, District Thatha SINDH

PSO Approval Awaiting

1 Mian Amjad Ali II Dunniyapur Lodhran Bahawalpur South Dunniya-Jahanian Road

21721 Muhammad Nadeem Rahim Shakargarh Narowal Gujranwala North Ikhlas Pur, Ikhlas pur road Shakargarh

30570 Ch Mohammad Yousaf Sandhu Sargodha Sargodha Faisalabad North Adda Phatte hotel, Sargodha-Chiniot/Faisalabad Road Sargodha

40562 Mohammad Zafar Hayat Lak Kot Momin Sargodha Faisalabad North Village Khanna, AhmedNagar-Phalia(Sargodha-Phalia) Road

59318 Ms. Azra Jamali/Babar Jamali

Usta Mohammad Jaffarabad Sakkur South Usta Mohammad

6 Mohammad Abbas Agha Qila Saifullah Qilla Saifulla Quetta South Qilla Saifulla

7

Farooq Ahmed Khan Abbasi/ Omar Agri Services KalurKot Bhakkar D.I. Khan South Kalur Kot Draya Khan Road

Dormant Sites

1 1723 Rana Shahbaz Shakargarh NarowalGujranwala

North Jarpal

2 O964Asif Mushtaq Khan (KKP(Pvt.)Ltd.)

Jaranwala FaisalabadFaisalabad

North Jaranwala-Faisalabad Road, Chak.no 123 GB

3 2034 Mehmood ul Hassan Renala Khurd OkaraSahiwal

Centre Lahore-Multan Road Renala Bypass, Renala Khurd

4 2216 Raza Zaheer Ali Vehari VehariSahiwal

South Vehari-Burewala road, ZaheerAbad

5 2731 Haider Zaman Qureshi Mian Channu KhanewalMultan

South Taulamba

6 2132Col. Nauman Lodhi / Asghar Services Agrimall

Sheikhupura Sheikhupura Lahore Centre Shiekhupura-Sharakpur Road, Sharakpur

7 1250Lt. Col. Mohd Nazeer Khatana/ Khatana Agrimall

Kamoki Gujranwala Gujranwala North Sadhoki-Mianwala Banglow Road, Sadhoki

8 2026Haji Muhammad Ijaz Hussain Daula/ Tayyab Agrimall

Deepalpur Okara Sahiwal Centre Deepalpur-Haveli Road, Daula Pukhta

9 O518 Jasarat Ullah Wahla Sargodha Sargodha Faisalabad North Sargodha-shaheenabad Road, Chak-88 shaheenabad

21


10 2525 Khalid Ahmad Khokhar Multan Multan MultanSouth

Multan-Shujabad Road, Near Sikandarabad Chowk, Multan

11 1930 Rana Rab Nawaz Khan Pattoki Kasur Lahore Centre Phool Nagar-Faisalabad Bypass Road, Gulzar Jageer

12 2535 Khawaja Zahid Latif Shujabad MultanMultan

SouthJalalpur-Shuja abad Road, Shuja abad

13 1627 Ch. Sarfraz Ahmed Daska SialkotGujranwala

North Daska-Pasrur Road, Daska

14 3345 Zia-Ur-Rehman Laleka Haroon Abad Bahawalnagar Sahiwal South Haroonabad

Refund Cases

1 O154 Sardar Shahnawaz Khan Jand Attock Islamabad North Pindi Gheb-Khunda Chowk Road, Attok

22025

Maqsood Ahmed/Muhammad Ahmed Khan/Rana Sajjad Deepalpur Okara Sahiwal Centre Basirpur-Haveli Road, Deepalpur District Okara

32016

Muhammad Ashraf/Muhammad affan Okara Okara Sahiwal Centre Noorshah Road, Okara

4 1310Rana Ehsan Ullah Hafizabad Hafizabad

Gujranwala NorthAdda Kassoke, Hafizabad-Ajnianwala road, Dist. Hafizabad

52312 Muhammad Makhzan Dyal Sahiwal Sahiwal Sahiwal Centre Chak #10-L, Lahore-Multan Road

6923 Salman Zeb Khan

Faisalabad FaisalabadFaisalabad

North Faisalabad-Samundari Road Faisalabad

72828 Sajid Qaisrani Taunsa D.G.Khan Multan South Kot Qaisrani, Taunsa-OGDC Road, D.G.Khan

82125 Riaz Hussain Khan Nankana Nankana Lahore North Khoyeke, Jaranwala-syedwala Road

91821 Malik Zubair Lahore Lahore Lahore Centre Manayala road, Jallo Lahore

10 1936 Riaz Ahmad Nagra Pattoki KasurLahore

Centre Lahore-Multan Road, PhoolNagar bypass Phool Nagar

111313 Muhammad Akram khan Hahizabad Hafizabad Gujranwala North Kaleki Mandi, Hafizabad

122327

Muhammd Nadeem Shahzad/Ch Arif Sahiwal Sahiwal Sahiwal Centre Sahiwal Kassowal Road, Cheechawatni

13 O152Bismillah Enterprises (Rauf Jamal)

Fateh Jang AttockIslamabad

North Fateh Jang

List of Main Competitors

1. Four Brothers Group

2. AGROW Private Limited

22


Organizational Structure

Organizational hierarchy chart

23

Chairman/CEO

Marketing Manager

Chief Financial officer

HR Manager

Sales manager

Business unit head

Product manager

Tax Manager

Account manager

Cash Manger

Sales & Marketing

Administration

R & D

Zonal Manager

Accounts

Operational Department


Number of Employees

Agrimall Private limited is an Equal opportunity Employer and employs a staff of

around 235 with 20% being Females.

24


We firmly believe that only professional people can run a progressive

Organization and Implement it believes and philosophies. Our employees are

one of our most important assets and carefully tailored training programs are run

round the year for updating their knowledge and skills.

Head Office

LAHORE

Airline Housing Scheme, Khayaban-e-Jinnah, Lahore, Pakistan

Landline# +92 42 35183819-20

Landline# +92 42 35184722-23

Fax # +92 42 35183821

Partners Companies offices

ALI AKBAR GROUP

1-KM Bhoptian Chowk Defence Road,

Off Raiwind Road, Lahore, Pakistan

Landline# +92 42 35321461-5

UAN# +92 42 111 224 111

Fax# +92 42 35321324

MILLAT TRACTORS LIMITED

Sheikhupura Road, Shahdara Lahore,

Landline# +92 42 37911021-5

UAN# +92 42 111 200 786

Fax# +92 42 37924166

ENGRO CHEMICALS PAKISTAN LIMITED

8th Floor, Harbor Front Building,

25


Marine Drive, Block 4, Clifton,

Karachi Pakistan,

UAN# +92 21 111 211 211

PAKISTAN STATE OIL COMPANY LIMITED

PSO House,

Khayaban-e-Iqbal, Clifton,P.O Box 3983,

Karachi 75600, Pakistan

UAN# +92 21 111 111 PSO

Introduction of all departments

Introduction

In order to produce and sell their products or services most organization will need

to undertake key functions

Finance Department

Human Resource Department

Sales and Marketing (Business Development) Department

Construction Department

Administration Department

Banking Department

Research and Development Department

Finance Department

The Financial section of the organization will keep manual/electronic records of

money received and paid out by the organization. This information will then be

used to produce various financial statements for tax purpose and to comply with

26


legal requirements. The information will also be used to produce management

accounts to enable senior managers to plan and review business strategy.

Human Resources Department

Human Resources Department or personnel’s main responsibility is the

recruitment, selection, training and development of staff. This will involve

developing staff to maximize their potential in manner that furthers the

organization’s objectives.

Human resources often adopt a welfare role which includes looking after

employees whilst they are at work. They may also create policies that balance

organization needs with those of the employee. They will also interpret

employee’s welfare legislation and ensure that the Organization is complying with

the applicable legislation.

Sales and Marketing (Business Development) department

The sale and Marketing Department will research Customer needs to develop

strategy and product and services to satisfy that customer needs. In its research,

the marketing department will investigate the market they are aiming at; the type

of consumer making up the market (age, background and gender etc) and

preferences of the consumer within that market. The Marketing Department will

then need to marry consumer preferences will producing a product that is

profitable. Once the product has been designed by the production department,

marketing and sales Department will then need to package, advertise and

promote the product.

Sales are responsible for persuading the consumer to purchase the end product,

Manufactured through marketing research. The selling strategy of sales

department could involve mail shots, traveling and representative, telephones

sales and devising the sales interview.

In order for Agrimall franchise system to succeed, and remain profitable and

competitive in the market, the function of FRANCHISE DEVELOPMENT and

27


SUPPORT is created, the purpose of the department is to insure that the most

suitable entrepreneurs join Agrimall franchise network. They should already be

looked upon as local role models, progressive farmers and enlightened

businessmen capable of buy-in to the Agrimall vision and assist in grassroots

implementation of the reality. The Appointment and establishment of these

franchisees should be smooth and manageable as it’s commercially viable. Work

towards brand promotion and brand equity creation through advertisement and

BTL activities.

Prospecting

Prospecting is process of short listing potentially eligible franchisees,

approaching them, sharing the information and convincing the entrepreneurs.

Franchise Appointment

Franchise selection and appointment in one of the critical success factors for

Agrimall. Particularly because this is a unique and innovation concept, it is

imperative that we bring into our team only the finest people who fit completely

with our vision and who will take the concept further rather than defeating its

purpose.

We will continuously expand operations, and bring the efficiencies in operating

methods. Continuous learning will take place as an ongoing process. The

assurance of quality customer service is going to be hallmark of Agrimall. Our

batch of franchisees will have a pivotal role to play.

Prospecting

Prospecting franchisees will come from three groups.

1. Existing Dealer network of Agrimall JV partners.

28


i. Engro dealer Network: these dealers have extensive agriculture

business experience, and are used to high quality standards and

practices set by ENGRO. They all have a high degree of faith in the

company they are working with, so will give assign a high credibility

to Agrimall being a JV company where ENGRO is partner.

ii. PSO: The PSO Franchise Holders are also good to Approach

because they are well versed with the benefits of the Franchise

system. They know it entails heavy investment both in terms of

finances and management, but the returns on investments is fairly

attractive.

iii. Ali Akbar Group distributor agencies: Most of pesticide business

takes Place during cotton season which lasts for just about 45 days.

Most of their investment is towards advance booking of pesticide,

and inventories. The positive side is That they are aware of the

trading intricacies of agriculture input.

iv. Millet Tractors distributors: these are distributors of tractors and

agriculture implement. As such they do have contact with the

farming community. On the other hand they have negligible

experience of agricultural input sales.

2. Walk in prospective clients who receive information about Agrimall through

word of mouth, which could come from contact with farmer associations, or

acquaintance with people who are already convinced of this business.

3. Advertising Campaign: The third Source of prospects comes from

promotional campaign, where we advertise the concept and get responses

from across the community. Here it will be very important to gauge the

ability and willingness of prospect.

Franchise profile

29


In order to Standardize the screening process, the profile expensed of an

Agrimall franchisee should be as under:-

1. Should be a locality where he wants to establish a franchise outlet. The

reason for the franchise for being a resident of community where he is

opening the outlet is that, he will be that much committed with the

profitability of his customers.

2. Should have a farming/ agriculture background with some practical

experience. Preferably owing his land and involved in self cultivation.

3. Have a sound reputation in the locality where he belongs, preferably

should command significant influence in his area to be able to capture a

good market share, as well as to be able to influence farmers through

his technical staff to convert to the modern and more productive farming

technology.

4. Should either own, or be willing to acquire one acre of land on metal

road which would be dedicated for the development of the proposed

Agrimall site. This land should fulfill the basic requirements.

5. Must be able to put up cash investment of Rs.2.0 to 2.2 million for the

the franchise. This will include paying of Franchise Free Rs.500K/- plus

equity portion for setting up and starting of the project. This will take the

franchisee towards startup of the project.

6. Agrimall will be arranging financing for the project through bank, so the

party must have clean credit history to be eligible for bank loan.

7. Must be willing to provide complete information on as prescribed forms

(PRIOR To APPROVAL OF FRANCHISE BY AGRIMALL) which are

required to access the individual feasibility of the applicant’s particular

business venture.

Site Requirements

30


1. 6-8 kanals of land. The current facilities of the project will require an area

of 4 kanals. The remaining area is being sought for future business

expansions, and additional income stream for franchisees, also revolving

around the agriculture economy.

2. Located on main road, with easy access to mandi town. The location on

main road is for having greater visibility and better access to customers.

3. All franchise outlets will have the same basic look. There is a standardized

structure of building that has been designed for all of the franchisees. This

structure has been standardized to create brand identity across entire

country.

4. Must have as a pre requisite the provision of electricity, telephone (with

access to internet), and clean water.

5. When selecting a site, it should be ensured that it is not close to any PSO

petrol station on the same road. If there does exist a petrol station on sale

road , then the site should be at least tm 3KM away from this petrol pump.

The minimum distance is a condition by PSO to ensure that the business

of adjoining fuel pump is not adversely affected.

Process of information sharing with prospecting franchisees

Preliminary Meetings: These are mainly first time interaction with prospecting

franchisees.

1. They could either make enquiry on phone, or through a visit to the office. If

the person is enquiring on phone, you need to ascertain that this is a

genuine prospect and not a person who is looking for information just for

the sake of information, or may be coming from competitor side.

2. Once you have ascertained that there is a genuine purpose of obtaining

information for setting up of a customer service based business, you need

to share introductory information.

Information Sheet

31


This is a form that has been devised to incorporate the necessary information

required to have a proper and comprehensive assessment of viability of giving

Agrimall franchise to any applicant. It contains the following basic kinds of

information. Most of the information mentioned in the information sheet is simple

and easy to fill.

a) PersonalInformation:

This is mainly targeted to ascertain the personal information of the

prospect. The important section is educational and business information.

As Agrimall dares the conventional ways of conducting the agriculture

business practices, good educational background (minimum graduation)

will be a significant parameter is deciding about the suitability of a potential

candidate.

i. Involvement in active politics to gauge his influence in the local

community and his level of interaction, like local level, or provincial/

federal level.

ii. Business information indicates the type of any direct experience of

agriculture or other business he has had. If he is into agriculture, he is

also asked about how much land he has, and what crops he is

cultivating. Being in agriculture is a very positive aspect of any

prospect.

iii. Banking history and any case of default in past. This is required to find

out which bank will the franchisees prefer it there is a choice. Banks

finance the project, and it is a condition of the bank that the party has

to have a no-default history if it has to qualify for loan approval.

iv. For financing, bank will require collateral. Information regarding owned

land, plus value of pass book and loan value in case the passbook is

under lien.

b) Union council information:

32


Union council information will provide the data that will help in

analyzing the business potential in the area, for which the prospect is

applying. It is important to note here, that the franchisee must be given around

15000 acres of the cultivated land as earmarked for is marketing efforts. This

is one of the basic assumptions. However the most authentic source of

information remains patwari:-

i. Infrastructure giving roads, petrol pumps, agriculture dealers,

number of banks. Roads will indicate ease in commuting, ethers the

rest of parameter will tell what level of competition exists in terms of

diesel and other agriculture inputs

ii. Total land of the union council both dedicated should be 15,000

acres.

iii. Out of the cultivated part, the breakup is taken for area under each

of the major kharif and Rabi corps separately.

c) Site information:

Site information section provides firsthand knowledge about the site

at which the prospect is interested in running Agrimall Franchise Outlet.

This section collects information about:-

It is required that the site should be 6” above level , filled and compacted

as per specification provided by the AM .The Most of filling of land is not

part of project cost, as this is pre requisite.

d) Business Potential:

In the end, the prospect is to give in the possibility of covering the

number of acres in terms of input sales for his first year of business. This is

broken down into, a) family and personal contacts, b) through marketing

efforts. The overall ability to acquire business by the applicant determines

what his actual cash flows are likely to be. The acreage that he will cover will

also indicate in the financial model how much his net income will be.

33


On receipt of information sheet, the prospects individual financial model is

prepared, and his particular project viability is validated. If available, then

prospect is advised to arrange for payment of franchise fee (currently

Rs.500k).Along with this fee, the application package is filled by the prospect,

and in parallel the site is physically inspected by Agrimall personnel, and

verifies for compliances to our requirements.

Franchise on lining process

The on –lining process starts after a prospect has made up his mind that

he will go ahead and take the franchise. This process takes the prospect through

paperwork required up to firmly putting him through the franchise appointment

process.

Formal Application package

This is a document, which contains set of forms that further defines the

requirements of the project, and forces the prospect to acknowledge and accept

in writing all the salient features and prerequisites of running a franchise.

The applicant has to fulfill the application package, and attach to it, the site

documents as listed in the package (Aks shajra, Fard malkiat).On receipt of the

application package with the site documents.

Site Selection Checklist

Here Agrimall Representative to determine suitability of the plot where the

Agrimall outlet is going to be built physically inspected the site. However at time

of site inspection, a detailed checklist is filled up to cover all aspects of the

requirements.

No Objection Certificate:

In this phase various approvals from government are required as

prerequisite to start construction in the area. These are called No Objection

Certificate (NOCs) and are in response to applicant’s request to carry on certain

34


activity in the area. For Agrimall, NOC requirement comes under pre-

construction phase where various NOCs are required for construction

guidelines for the proposed site to obtain NOC.

NHA Requirements:

Dispensing unit should be 70 feet apart from the centre (centre line) of the

highway.

Explosive Requirements:

Dispensing unit should be 12 feet away from the boundary wall of the

proposed site.

For HSD pit distance of 12 feet from any structure should be adhered to from the

any edge of the steel.

In case of two or more dispensing unit, distance of minimum 22 feet should be

adhered, for installing units vertically.

Increase of two or more units to be installed horizontally, no distance is

applicable.

Checklist of the steps that are taken for obtaining the NOCs is as

given after list of NOCs that need to be obtained.

List of NOC Approvals

DCO Approval processes

The person seeking to operate a PSO pump will apply for NOC from the DCO of

the district.

He will write an Application and inform about his intension of operating a pump.

He will also attach 12 copies of his site plan, where he wishes to operate the

business. The site Plan should include the khasra number, Name of the person

who has the Fard of the site.

DCO will mark the copies of the site plan to 11 departments in the district for their

approval of the Site for business.

35


After receiving NOC from 11 departments (mentioned below) DCO will issue a

consolidated NOC to the Applicant.

Explosive Approval Process

The person will now seek approval from the explosive department 3 copies of

site plans are to be submitted to explosive department.

Departmental NOC, s

1. National Highway Authority

2. Provisional highway Department

3. Civil defense

4. Forestry

5. Tensile Municipal Association

6. District Development

7. EDO (Revenue)

8. WAPDA

9. SUIGAS

10. District Senior Superintendent Police

11. Senior Superintendent Traffic Police

Construction Department

The actual construction commences once soil compaction has been

completed, and compaction test result have been satisfactory. In case there are

some shortcoming indicated in the soil compaction test result, those will then be

rectified by the construction company at the cost of the franchise. The cost of

these corrections will be over and above the standard project cost and will have

to be financed directly by the franchise.

Administrative Department

36


This involves dealing with all administrative tasks including mail handling,

dealing with enquiries/complaints, catering and computer services. They will also

produce documents for the organization and maintain organization’s premises

and equipment.

This Function although not always recognized is vital, as it is the glue that holds

the organization together. Without an administrative department, customer

complaints would not be resolved, customer orders may not processed, and the

workforce may not have the tool they need to complete their tasks.

Banking Department

Banking loan Approval Process at The bank of Punjab (BOP)

The Head Office of BOP is situated in Lahore and they issue loan letters

before starting work on completion of collateral related documents. The

disbursement of loan however is dependent on completion of all documentation.

Bank progress Monitoring Sheet

To monitor the sequence of events that take place in loan processing there

is a checklist that has to be followed. This gives in sequence each and every step

involved from sending the application of loan to bank, onwards to opening of

account, completion of documentation on part of franchisee, equity deposit,

sanction of loan and import processing.

Collateral Requirements

The collateral value that needs to be provided is 133% value of the loan

amount.

Some of the project assists like land, equipment and construction form part of

collateral to be provided to bank against financing.

The project requires collateral which is significantly greater than the evaluated

security value of the site. Therefore the loan applicant has to submit additional

collateral. The collateral can be in the form of un-encumbered assets like

agriculture land, commercial property or any other fixed asset.

37


Farmer Loaning

Bank provides a credit to farmers for the purchase of agricultural inputs

and services from AM franchise Outlet. For this purpose, the bank does not

handover the loan amount to the farmer rather an account is opened by bank,

which can only transact between at the AM outlet and farmer of purchase of the

inputs required for crop.

Research and Development department

The aim of Research and development department is to improve existing

products or services, create new and better products, improve production

Methods, and create effective processes. This will enable the organization to

reduce costs, increase profitability and remain ahead of the completion. As not all

researches will lead to new/improved products/processes companies will need to

allocate a specific portion of their budget to research and development activities.

Human Rights Department

Human rights are A broad subject that is relevant to Agrimall private limited

in a number of different context. In this Section we discuss human rights for

Agrimall employees and human rights issues in our supply chain.

Our direct employees are generally highly educated and skilled people for whom

we are striving to make our company an attractive employer.

Total quality Management

Introduction

From the 1980,s Total Quality Management was adopted by a

number of organizations. TQM requires the whole of the organization to adopt

the culture of quality. In a TQM organization quality will say the decision, tastes

and processes. A TQM organization is committed at all levels within every

department/function to constantly improve quality. In Order to fulfill this

commitment every single employee in the organization will need to accept the

challenge of continual quality development.

38


Components of TQM

TQM has four basic components

1. Place customers first

2. Make constant improvements

3. Aim of Zero deficiency

4. Training and improvement

Comments on the Organizational Structure

Agrimall Private limited Company is a well reputed company. A major

player and power house of the agriculture field with over many franchisees

nationwide. Agrimall private Limited is one of the the leading and unique

agriculture services and products provides in the Pakistan. During the past

decades Agrimall private Limited continued on the path to success.

The organizational structure of the Agrimall Private limited is well-brought-up. I

had a very good learning experience in this company which would be of

enormous help to me in the future. The staff was very helpful and friendly, which

made the working environment adaptive and pleasant. The people there make

Agrimall Private Limited a great company and an exciting place to work with a

shared desire to learn leading edge skills and stretch beyond their limits. I took a

deep interest in observing how employees in Agrimall Private Limited work

together to overcome challenging situations.

Plan of My internship Report

A Brief Introduction of the branch /head office where you did your

internship

39


I did my internship Agrimall private limited. Agrimall is a private limited

company provides the services and products to the farmer throughout in Pakistan

through its franchisees.

Basically the purpose of the company is to provide the agricultural services to the

customers. The customers are usually farmers and land lords. There is very low

educational level in these types of people so, that it is very difficult to convey your

massage easily about your product and services. But it is very clear that the

basic purpose of this business is to facilitate your farmers more and more and to

that Agrimall provides anything a farmer can demand from him e.g. seeds, petrol

pumps, tractors, and other benefits etc.

There are very departments in Company From in which I did my training for job

professional experiences in the all fields Such as Accounts, marketing and

finance department for filling and other small works in the company under the

supervision of Mr. Muhammad Sikandar, Mr. Tahir Nazir and Mr. Muhammad

Nouman.

I performed my all duties to assign to me by my seniors like meetings with

prospects, those prospects who are interested to join the Agrimall franchise

network and provide all the information to them about the Agrimall which they

want. During my internship program I also visit two times the Franchisees and

business sites of the Agrimall in different Areas.

Starting and ending date of my internship

My 1st day in Agrimall was July 16, 2014 and last day was Sep 20, 2014. The

total duration of my internship was 2 months approximately.

Names of departments in which I got training

There are many departments in the company but according to degree

program I mostly worked in accounts and finance departments’ learned a lot

40


things and experiences in this Organization from my work and from the

employees of the company. All staff of accounts department is very nice who

guide me and help me in every matter.

The policy in Agrimall private limited is based on maintaining of principals of

ethics and cooperative. The finance and accounting department is responsible

for financial planning, distribution of profit to share holders, acquiring loans from

banks and financial institutions, calculation of all expenses and incomes as well

as preparing tax returns. Overall official environment of company is totally

professional and very good.

At the end of my Internship plan I wish to notify that I really enjoyed working

environment in Agrimall private limited.

Training program

Detailed description of the operation/activities performed by the

departments in Agrimall (PVT) LTD

As I already say that there are many departments in the organization and did my

internship in different department like marketing department and accounts

department but most working in accounts department. Training is the most

important essential of any organization for its employees and new comers for

best work. Training provides all the information about the product and services

provided by the organization to its employees for best working. If a person is

unaware from all the products or services proved by his organization he or she

cannot properly concentrate on his working or cannot better guide his customers.

So that during my internship first of all I got my training about the products and

services of company and I gain more and more information from different

sources. There are many benefits of training to their employees as the business

world changing day by day. The company should provide the training to their

employees throughout their careers. If the company chooses not to provide the

41


full and continuous training to their employees they find it difficult to stay further

in the competition.

Regular training programmers keep your employees motivated. New skills and

knowledge can also help to reduce the boredom. The Employees seeks new and

new things day by day. And their working efficiency also increases. Following are

the departments in which I got my Training:

I have worked in Financial Accounts Department at Agrimall Private Limited, Lahore as an intern and my supervisor guide and teach me how to manage the accounts computerized, because I was aware of just manual accounting not aware of about computerized accounting. He taught me how to prepare voucher for payments and receipts of the business, how to journalize the transaction in ACC PAC (accounting software), How to prepare the Bank Reconciliation Statement. I have almost covered the following Sections:

1: Inventory Section

Inventory Section plays a very important role in any organization & is an important part of the Accounting Section. This section is doing a variety of work. This section maintains all the record and accounts about inventory and imports of material. It is concerned mainly with the:

Control of inventory Insurance Methods of recording inventory

Inventory section also deals with the loans of the company. Agrimall Limited has the policy to finance all long term projects through loaning. This section also checks the value of all assets. It is the duty of inventory section to know how much inventory is there in stores and for how long it is going to be kept. Accounting principles followed by inventory section:

Assets are depreciated at Straight Line Method. Issue requisition of goods received note is the source of information of

Inventory. Fixed assets are stated at cost less accumulated depreciation. Inventory evaluation is based on Average Method of Costing. Assets, raw material and other stocks are recorded.

Depreciation on all property, plant and equipment is charged to profit on the straight line method so as to write off the depreciable amount of an

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asset over its estimated useful life. Depreciation on additions to Property, Plant and Equipment is charged from the month in which an asset is acquired or capitalized while no depreciation is charged for the month in which an asset is disposed off.

2: Purchase Section

This section normally deals with the records of all purchase made by the company. In Agrimall Limited purchases are actually made by the Commercial Department but its accounts are dealt by the Purchase Section.Purchase section also deal with different documents such as:

Issue Requisition (IR) Purchase journal (PJ) Cash Voucher (CV) Goods Received Note (GRN) Purchase Requisition (PR) Store Return Note (SRN) Store Transfer Note (STN)

The purchase section records all the daily purchases of company made by commercial division or any other department. The purchases made by Agrimall Private Limited may be on cash or credit basis.

3: Payroll Section

This section deals with the Running of salaries, wages and stipends prepared by Industrial Relations Tax computation Final settlement of dues when the employee leaves the organization for

any reason. Employee’s remuneration from hiring till end (retiring/firing).

4: Cash and Bank Section

The staff of this section is assigned the job of making payments on behalf of the company. This is the busiest section. It receives checks and records them in the cash and bank book and in the system on daily basis. All the traveling allowance bills, petty cash expenses and monthly payments of

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salaries are made through this section. This section operates under the delegated authority from the Comptroller of Accounts.

Operations of Cash & Bank Section:

To maintain Cash Book Payments in the Shape of Cheques Payments to the suppliers To check the Bank Reconciliation Statement Payments for Local Traveling Pay orders

5: Employees Reimbursement Section (ERS)

In this section Traveling, Medical, entertainment and all the expenses that were born by the employee are reimbursed. This procedure is followed to reimburse the reimbursable expenses.Get a reimbursement form, fill it and attach evidences with it. Now get this form signed from the relevant section’s incharge and then given to the reimbursement section (ERS). This section checks the bills and prepares the cash vouchers according to the reimbursement policy. The employee gets cash from cashier after presenting the signed cash voucher to him. There are two cost centers Selling and Admin. These expenses are charged to cost center according to the employee reimbursing.

FINANCIAL ANALYSIS

Financial Management

Basically Finance is the art of managing money. How to manage the resources of the business for fulfillment of the goal of maximization of shareholders’ wealth. Basic financial management includes activities such as

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managing the day-to-day operations of a business, such as paying suppliers, cost of capital, and budgeting. It also includes making long-term investments in plant and equipment and obtaining the money or financing for your operations. Financial statement analysis (or financial analysis) is the process of understanding the risk and profitability of a firm (business, sub-business or project) through analysis of reported financial information, by using different accounting tools and techniques support both the financial and operational activities of an agency.

Support Accounting

Financial management has an objective to support the company accounting department. Financial managers do not usually complete everyday accounting functions. They typically review the information from the accounting department and review this information for accuracy and validity. Corrective measures or suggestions can be made to improve the company accounting information. Accounting information plays an important role in small business. Business owners often use accounting information to secure external financing from banks, lenders and investors.

Provide Decision Information

Business owners often require financial or accounting information when making business decisions. One objective of financial management is to provide business owners and other individuals with information for making business decisions. Information must be useful, relevant and accurate. Financial managers are usually an intermediary between the business owner and other operational managers. This saves the business owner time and effort from wading through extensive information with no relation to the decision at hand.

Risk Management

Risk management is often a primary objective for financial management functions in larger business organizations. Risk management ensures companies do not face undue pressure or risk from various financial situations. Financial rooms can result from business opportunities providing inadequate financial returns, debt financing with unfavorable loan terms, lack of available business credit and unstable financial investments. Financial managers

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often spend copious amounts of time reviewing their financial activities to ensure the least amount of risk are absorbed by the company.

Improve Operational Controls

Financial management has a responsibility to improve operational controls and workflow. Financial managers often review information from several divisions or departments within their company. The focus of this review process ensures company employees are operating within standard company guidelines. Financial managers can make suggestions to business owners for improving the controls and business operations. These suggestions outline specific objectives for reducing waste, limiting unnecessary expenditures and improving employee productivity.

Financial Statement Analysis Tools

These statements contain information relating to the revenues, expenses, assets, liabilities and retained earnings of the business. Business owners often pay close attention to this information since the statements can provide detailed information about the company operational performance. Many business owners and managers use specific analysis tools to closely review their company financial statements for decision-making purposes.

Financial Ratios

A traditional financial statement analysis tool is financial ratios. These ratios take information from the financial statements and calculate economic indicators for comparison to another company or the industry standard. Financial ratios include liquidity, asset turnover, financial leverage and profitability calculations. Liquidity ratios calculate the stability to meet short-term financial obligations. Asset turnover ratios indicate how well the company uses its assets to generate profits. Financial leverage ratios calculate the long-term solvency of a company.

Financial Ratios Analysis

A financial statement analysis compares current financial statements to previous financial information. Companies often conduct this analysis by putting several years of financial statements in a side-by-side comparison format. This enables business owners and managers to review the same month over several years to determinate if revenues, expenses, assets or liabilities have increased, decreased or stayed the same. Companies can

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also use a horizontal analysis to compare changes in dollar amounts or a percentage change when comparing financial statements. Company also uses these tools to compare the performance of the company with similar nature company for making of decisions.

CHARACTERISTICS OF FINANCIAL ANALYSIS

Properly comparing a balance sheet with the corresponding profit and loss account to determine the strengths and weaknesses of a business describes financial statement analysis. “In a technical sense, financial statements summarize the accounting process and provide a tabulation of account titles and amounts of money,” reports Reference for Business. Financial statements help communicate what financial decisions have been made and how they affect the bottom line.

Significance

Financial analysis determines a company's health and stability. The data gives you an intuitive understanding of how the company conducts business. Stockholders can find out how management employs resources and whether they use them properly. Governments and regulatory authorities use financial statements to determine the legality of a company's fiscal decisions and whether the firm is following correct accounting procedures. Finally, government agencies, such as the Internal Revenue Service, use financial statement analysis to decide the correct taxation for the company.

Liquidity

The balance sheet provides liquidity rations that show how much monetary worth the company has on a given day, which helps determine if the firm’s financial reliability. The current ratio shows “the 'working capital' relationship of current assets available to meet the company's current obligations,” reports Credit Guru. The quick ratio is similar, calculating those assets easily convertible into cash, determining the immediate working capital relationship. The debt to equity ratio establishes who owns more of the company, creditors or shareholders.

Efficiency

Efficiency refers to how efficiently the firm using its resources and efficiency ratios measure how efficiently the company turns inventory into

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revenue. The day sales outstanding ratio focuses on the time required to turn inventory into cash and the age of your accounts receivable.

Profitability

Profitability ratios reveal a firm's success at generating profits. “The profit margin of a company determines its ability to withstand competition and adverse conditions,” reports Credit Guru. Return on assets, reveals the profits earned for each dollar of assets and measures the company's efficiency at creating profit returns on assets. Net worth focuses on financial returns generated by the owner's invested capital.

Sales Pattern

Financial statements reveal how much a company earns per year in sales. The sales may fluctuate, but financial planners should be able to identify a pattern over years of sales figures. For example, the company may have a pattern of increased sales when a new product is released. The sales may drop after a year or so of being on the market. This is beneficial, as it shows potential and sales patterns so executives know to expect a drop in sales.

Budget Outline

Another advantage of using financial statements for future planning and decision making is that they show the company’s budgets. The budgets reveal how much wiggle room the company has to spend on launching products, developing marketing campaigns or expanding the current office size. Knowing how much money is available for planning and decision making ensures that the company does not spend more than expected.

RATIO ANALYSIS:

Current Ratio =

TotalCurrent AssetsTotalCurrent Liabilities

2013 2012

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0.76 times 0.68 times

2013 20120.64

0.66

0.68

0.7

0.72

0.74

0.76

0.76

0.68

Quick Ratio =

Cash+Accounts ReceivableTotalCurrent Liabilities

2013 2012

0.58 0.47

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2013 20120

0.1

0.2

0.3

0.4

0.5

0.6

0.580.47

Debt Service / Interest coverage ratio =

Earningbefore Interest∧Taxes(EBIT )¿ Interest Charges

2013 2012

3.96 2.57

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2013 20120

0.5

1

1.5

2

2.5

3

3.5

4

3.96

2.57

Return on Assets =

Net ProfitTotal Assets

2013 2012

10.12 8.04

2013 20120

2

4

6

8

10

12

10.128.04

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RETURN ON EQUITY =

Net IncomeShareholder Equity

2013 20120.19

0.2

0.21

0.22

0.23

0.24

0.25

0.244

0.211

2013 2012

0.244 0.211

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Earnings per Share =

Net profit availabe for equity shareholdersNumber of Shares outstanding

2013 2012

3.82 2.86

2013 20120

0.5

1

1.5

2

2.5

3

3.5

4

3.82

2.46

Gross Profit Ratio =

GrossProfitNet Sales

∗100

2013 2012

59.06% 58.49%

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2013 201258.20%

58.30%

58.40%

58.50%

58.60%

58.70%

58.80%

58.90%

59.00%

59.10%

59.06%

58.49%

Net Profit Ratio =

Net ProfitNet Sales

∗100

2013 2012

23.95% 20.70%

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2013 201219.00%19.50%20.00%20.50%21.00%21.50%22.00%22.50%23.00%23.50%24.00%

23.95%

20.70%

Inventory Turnover Ratio =

CGSAverage Inventory

2013 2012

5.26 6.58

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2013 20120

1

2

3

4

5

6

7

5.266.58

Market Price per Share =

EPS * P/E

2013 2012

28.56 26.40

2013 201225

25.526

26.527

27.528

28.529

28.56

26.4

Price Earnings Ratio =

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Market value per shareEPS

2013 2012

7.48 times 9.23 times

2013 20120123456789

10

7.489.23

Interpretation of financial ratios

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The Statement financial position and statement of Income are essential, but they

are only the starting point for successful financial management. Ratio Analysis of

Financial Statements is the best tool to analyze the success, failure, and

progress of your business. Ratio Analysis enables the business owner to mark

trends in a business and to compare its performance with the average

performance of similar businesses in the same industry. Ratio analysis may

provide the all-important early warning indications that will make you able to

solve your business problems before your business is destroyed by them.

1. Current Ratio is a liquidity ratio that measures company's ability to pay its

debt over the next 12 months or its business cycle. A generally acceptable

current ratio is 2 to 1. If current ratio is bellow 1 (current liabilities exceed

current assets), then the company may have problems paying its bills on

time.

2: Quick Ratio is an indicator of company's short-term liquidity. It measures

the ability to use its quick assets (cash and cash equivalents, marketable

securities and accounts receivable) to pay its current liabilities. Ideally, quick

ratio should be 1:1.A quick ratio higher than 1:1 indicates that the business can

meet its current financial obligations with the available quick funds on hand. A

quick ratio lower than 1:1 may indicate that the company relies too much on

inventory or other assets to pay its short-term liabilities.

3: DEBT RATIO the debt ratio is defined as the ratio of total debt to total

assets, expressed in percentage, and can be interpreted as the proportion of a

company’s assets that are financed by debt. The higher this ratio, the more

leveraged the company and the greater its financial risk. A debt ratio of greater

than 1 indicates that a company has more debt than assets. Meanwhile, a debt

ratio of less than 1 indicates that a company has more assets than debt.

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4: RETURN ON ASSETS Return on Assets (ROA) is an indicator of how

profitable company's assets are in generating profit. Return on Assets ratio

gives an idea of how efficient management is at using its assets to generate

profit. The only common rule is that the higher return on assets is, the better,

because the company is earning more money on its assets. A low return on

assets compared with the industry average indicates inefficient use of

company's assets.

5: RETURN ON EQUITY Return on Equity (ROE) is an indicator of company's

profitability by measuring how much profit the company generates with the

money invested by common stock owners. The return on equity ratio (ROE)

measures how much the shareholders earned for their investment in the

company.

6: DEBT TO EQUITY RATIO The debt-to-equity ratio is a measure of the

relationship between the capital contributed by creditors and the capital

contributed by shareholders. It is important to realize that if the ratio is greater

than 1, the majority of assets are financed through debt. If it is smaller than 1,

assets are primarily financed through equity.

http://www.investinganswers.com/financial-dictionary/economics/capital-5749

http://www.investorwords.com/273/asset.html

http://www.investorwords.com/14503/majority.html

http://www.investorwords.com/4064/realize.html

http://www.investopedia.com/terms/r/returnonequity.asp

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Financial Statements

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61


62


63


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SWOT Analysis of the Organization

The SWOT analysis is an extremely useful tool for understanding and decision-

making for all sorts of situations in business and organizations. SWOT is an

acronym for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses are generally internal to your organization.

Opportunities and threats often relate to external factors. For this reason the

SWOT Analysis is sometimes called Internal-External Analysis and the SWOT

Matrix is sometimes called an IE Matrix. Completing a SWOT analysis is very

simple, and is a good subject for workshop sessions. SWOT analysis also works

well in brainstorming meetings. Use SWOT analysis for business planning,

strategic planning, competitor evaluation, marketing, business and product

development and research reports.

The internal and external analysis produces a large amount of information about the

company. it tells us the whole picture of the company that what is the strength, and

Weaknesses are the internal factors of the company which teller us that what

improvements should be done by the company and opportunities are threats tells us

that what company can do for expand its business and can less their threats from our

competitors and from other market problems and what opportunities company can avail

for best business promotions. Strength serve as a foundation for building a competitive

advantage, and weaknesses hinder it. By understanding these four aspect of its

situation. We can better understand the clear picture of any organization.

Forecasts of Agrimall internal and external analysis are as under.

Internal Analysis

The internal analysis is a comprehensive picture of the internal environment of the

organization that what are the positive and negative points in the environment of

organization. The internal analysis of the Agrimall Private Limited as done considering

the following factors.

Strengths

http://www.businessballs.com/brainstorming.htm

http://www.businessballs.com/workshops.htm

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Agrimall Private Limited Culture.

Financial position of the Agrimall

Organizational structure and the hierarchy system is very good thing in the

company

Human Resources Department of the organization.

Advertisement of the company product and services through broacher and other

business promotion schemes.

The System of Agrimall private Limited is centralized.

ISO certification.

Pricing Strategies are also very helpful for making the strength so the company.

Credit facilities for multi products.

The rural areas are ideally located in Agrimall private limited

Franchisees of Agrimall has more trust on company than the partner company

Agrimall Private Limited also provided Tractors to farmers in a very cheap rate

It also supports its Franchisee in social standing matters

Weaknesses

There is no control on Franchisee activities on daily basis

There is the Financial budgets are very limited, so that no budget to develop

brand awareness

Only large areas are not enough for staff / managers but also they need more

facilities

Education is very important thing to do any business but In Agrimall most of

farmers are less educated, so that there is very difficult task to convey our

massage easily to them.

External analysis

An opportunities is chance to introduce a new product in market against our competitors

that can generate high returns.Oppertunities can rise if the changes occurred in the

external environment of the company. Most of these changes can cause the threats to

the company in market position. Following are some opportunities and as well as

threats which a company faces in external analysis.

Opportunities

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It controls own network by its sales and marketing Team

Market trends

Purchasing in bulk quantity

Financing

Introducing new products

Fuel and tractor business also effects the opportunities to the company

Threats

Competitors are the main issue in this head of SWOT analysis

Social changes are also effects the threats

Director competition from brand owner by having their own network

Issue of Price with fertilizers and fuel etc.

Political and regulatory environment also effects

Political situation of the country

Trade and Terrorism

Government restrictions

Conclusion

According to my observation no doubt the Agrimall Private limited did well in agriculture

field. The basic aim of the company is to provide the quality products and services to its

customer through its franchisees network. The basic target of the company are farmers

and land lords. The company captures the farmers to fulfill all the basic and foremost

requirements and needs of farmers. The company provides all the needy things to

farmers at one point e.g. seeds.guidlines about seeding, fertilizing, tractors, fuel and

diesel Etc.the Company is already established in the field of Agriculture. I think that

Agrimall private limited has a rich background with highly qualified persons and human

resoureces.the company has a very unique culture and contributing in very high level to

the economy of Pakistan. The staff of Agrimall private Limited is very good and

cooperative for a unknown persons like me and like less educated persons farmers

etc.It has truly been a pleasure working with these nice persons. They helped me to

learn a great experiences in marketing field.

Recommendations

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During my internship I have analyzed the some problems in the organization. To the

best of my knowledge I recommend the Following Recommendations for Improvements.

There is a lack of some mismanagement In Agrimall Private limited that if an

employee has some problems with his supervisors can communicate with the

high management of the organization and some steps must be taken for solution

of that problems.

The Agrimall Private Limited should maintain some training programs for its

employees, so. I suggest that the company should provide such type of

opportunities to its employees for best result.

Consumer demands are changing day by day and it is very important to follow

the marketing strategies.

The payment process of Agrimall private limited is very lengthy in purchasing of

tractors for farmers and as well as other products.

Equipment and furniture should be according to the new organizational styles.

Proper attention should be given to new and upgraded customers.

Sales and marketing should pay full attention on quality of products and services

to its customers.

Communication between management and the customers should be very

effective.

Sales and marketing’s incentives should be increased to the employees and

salaries package also should increase for best outputs from employees.

Working load in every department should be equally distributed for working in

friendly environment and for coordination between all departments.

There is a lot of paper work in marketing department. It should be reduces for

better emphasis on their work.

Decision making and decision taking is a very important task in every

organization and the Agrimall private limited should involve the high management

in decision making so that the employees can describe their requirements

according to responsibilities assign to them in front of board of directors.

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Culture of Agrimall private Limited should be improved because rewards are not

the solutions of every problems. Top management should create a team for

building task and it should fulfill all the reasonable requirements of the

employees.

References and Sources

www.google.com

Business Development Manager Mr.Tahir Nazir and Area Sales Manager

Mr.Muhammad Sikandar of Agrimall Private Limited.

http://www.google.com/

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Accounts officer Mr. Muhammad Nouman

Personal Observations

Information gathers through orally asked questions.

Date post:	10-Dec-2015
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