internship report on gujranwala chamber of commerce & industry

Internship Report

Report Title:

Internship Report on Gujranwala Chamber

of Commerce & Industry

Presented To:Prof. Dr. Ehsan Malik

Presented By:Bilal BC06132

Approved By:Sir Ashar Shakeel

Presentation Date:August 26, 2010

Gujranwala Campus

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Executive SummaryExecutive Summary

I have selected Gujranwala Chamber of Commerce & Industry (GCCI)

organization. All the companies or businesses in Gujranwala are members of GCCI. The

GCCI can issue Membership or Measurement Certificates as well as Certificates of

Origin for the export cargoes and attestation of commercial documents. GCCI also issues

recommendation letters for Visa and Passport & other benefits.

I have learned a lot from this organization. I have done my work of internship in

R & D Cell for first three weeks, one week in Membership department, one in

Accounting & last one in Computer cell. Everyone in these departments has supported

me, in order to collect important information required for this report. Whenever I go,

they received me with warm welcome and helped us in all matters. Their cooperation

provided me comfortable environment for data collection. I have conducted face to face

interviews with staff members. I have also observed the whole organizational

environment.

I have felt many discrepancies, like non segregation of duties, dose not have

required staff & faced many other challenges in the industrial sector due to energy

crisis, political & other challenges which become the grater hurdle in the way to promote

the industries smoothly. I concluded from my internship that GCCI is running as a good

organization and has solid records throughout its life period & providing many benefits

to its employees. To overcome the discrepancies, I recommended to the GCCI

management to segregate the duties, hire the required staff & introducing new

departments.

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AcknowledgementAcknowledgement

I owe our gratitude to Allah Almighty whose shower of blessings and kindness

has been on me through out the working on these pages. It is His help that I am finally

able to compile this Report.

I am indebted to Staff of GCCI for their support and intricate comments on

various aspects conjoined with motivation made me to come forth holding such as report.

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DedicationsDedications

I dedicate this lovely report to:

My Parents & Friends

Teachers, especially to my honorable Teachers

Sir Hafiz Imran,

Sir Naveed Iqbal,

Sir Aamir Sohail &

My favorite Sir. Khurram Aziz Fani,

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Table of Contents

Introduction to Report 01

Organizational Profile 02

Vision Statement & Mission Statement 05

Management Hierarchy 06

Departments 07

Area of Internship 13

Work Done During Internship 14

Financial Analysis 37

SWOT Analysis 53

Recommendations 60

Conclusion 61

Bibliography 62

Glossary 63

Annexure 65

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Introduction to ReportIntroduction to Report

This report is made for my professional experience after the completion of B.Com 8 th

semester. This report is about Gujranwala Chamber of Commerce & Industry (GCCI)

which is engaged for the promotion of commerce & industry in the district of

Gujranwala. In this report, I have explained, my experience at GCCI. First of all in the

first portion of report, I am giving the Profile of GCCI & its major service to members. I

have also explained about the Quality Policy of GCCI.

The management of GCCI has not provided me Vision & mission. So, I have created

Vision & Mission Statements of GCCI. In the second portion the report this I am try to

explain different departments of GCCI & their functions.

Membership Department

R & D Cell

Accounting Department

Computer Cell

In this part, I have also explained the area of my internship at GCCI & the work done

by me at GCCI during internship. In the 3rd part of report, I have done the Financial

Analysis of GCCI in order to evaluate the financial position of the GCCI through;

Horizontal Analysis

Vertical Analysis

Ratio Analysis

After this I have done the SWOT Analysis of GCCI in order to evaluate the Strengths

& Weaknesses, and Opportunities & Threats of GCCI. On the basis of SWOT analysis, I

am in a position to recommend some solutions for the effective & efficient operations of

GCCI & to overcome all the weaknesses & threats.

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Organizational ProfileOrganizational Profile

The Gujranwala Chamber of Commerce & Industry is a Joint Stock Company

registered as, limited liability Company under the Companies Ordinance, 1984. The

GCCI is engaged in the promotion of Commerce & Industry in the District of

Gujranwala.

The Gujranwala Chamber of Commerce & Industry has providing his services to

its members from a long period of time since 1970’s, in Gujranwala. It strives hard to

contribute in the economic development of Pakistan in general or of Gujranwala in

particular .But now a day, due to energy crisis, high inflation, higher interest rate & high

unemployment rate are major challenges which badly affect the Trade (Exports or

Imports) & economic development of the Pakistan.

Logo of GCCI:Logo of GCCI:

Services of GCCI:Services of GCCI:

The Gujranwala Chamber of Commerce & Industry providing the following

major services to its members;

To issue Measurement Certificates as well as Certificates of Origin for the export

cargoes and attestation of commercial documents.

GCCI also issues recommendation letters for Visa and Passport.

The Foreign Exchange is issued on Chamber's recommendations.

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GCCI organizes Pakistan's Pavilions in the international fairs abroad to promote

export.

GCCI also organizes Seminars, Training courses, Conferences on various subjects to promote the cause of private enterprises.

GCCI invites Minister's and Government functionaries to the Chamber to identify

the problems being faced by trade and industry and to help resolve them.

A number of foreign trade delegations, dignitaries and diplomats visit the

Chamber and exchange views on matters of mutual interest.

It publishes Magazine or Trade Directories, Statistical Data and other

publications for the benefit of the business community. It brings out fortnightly

Trade Journal about Chamber's activities, containing business, legislative and

civic news.

Contact of GCCI:Contact of GCCI:

Address:

Chamber Plaza, Aiwan-e-Tijarat Road, Gujranwala - Pakistan

Telephone:

+92-55-325-6701

+92-55-325-6702

+92-55-325-6703

+92-55-325-6704

Facsimile:

+92-55-325-4440

E-mail:

[email protected]

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mailto:[email protected]

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Quality Policy:Quality Policy:

The Gujranwala Chamber of Commerce & Industry

Every activity of GCCI is directed towards the promotion and protection of the

business interest of its members at National and International level in accordance with

ISO 9000 standard.

Objectives:-

To reduce the communication gap between GCCI’s members and Government

officials by acting as a bridge between the two sides.

To make sure that the latest development/changes in the Govt. policies trade

enquiries, business opportunities, international fairs & exhibitions, technological

developments around the world are available to the members through GCCI.

The Gujranwala Chamber of Commerce & Industry will not only provide

information to the members but will also arrange training courses, workshops,

seminars on various technical, technological, regulatory, taxation and management

aspects of business.

To develop a good image of our members at the National and International levels

so as to boost their business activities.

To establish, implement and maintain training programs within the organization

for the better performance of our employees so as to serve the members in an effective

and efficient manner.

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Vision & Mission StatementVision & Mission Statement

The Gujranwala Chamber of Commerce & Industry has defined only Quality

Policy. The Computer Officer Mr. Hafiz Muhammad Burhan has said that they have

only Quality Policy which acts as Mission & Vision Statement.

Following are the Vision & Mission Statements, which I have defined;

Vision Statement of GCCI: Vision Statement of GCCI:

To work together as a district of businesses (profit and non-profit) and

residents whose goal is to serve as the stewards of positive future growth while

maintaining the great traditions and personality unique to Gujranwala.

Mission Statement of GCCI:Mission Statement of GCCI:

The mission of Gujranwala Chamber of Commerce is to provide

guidance that supports the existing business, community while promoting

favorable economic growth & development in the Gujranwala.

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Mangement HirerachyMangement Hirerachy

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President

Vice President Sceratry General

Membership

Officer

Record Officer

Vice President

By President

DepartmentsDepartments

The Gujranwala Chamber of Commerce & Industry has performed its operations

with the help of following four departments;

Membership DepartmentMembership Department

The Membership department is most important department of Gujranwala

Chamber of Commerce & Industry. This department is dealing with all the issues

regarding membership of Gujranwala Chamber of Commerce & Industry. This

department can maintain the record of all the members of Gujranwala Chamber of

Commerce & Industry. This department can issue membership to a Sole Proprietor or

Partner or body Corporate or Company, if they can fulfill the eligibility criteria as

defined in Articles of Association of Gujranwala Chamber of Commerce & Industry.

These are either a Sole Proprietor or Partner or body Corporate or Company can apply in

form prescribed by the Executive Committee accompanied with the admission Fee &

annual subscription for the first year.

This application is send to Secretary General of Gujranwala Chamber of

Commerce & Industry. The Secretary General of the Gujranwala Chamber of Commerce

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1) Membership Department

2) R & D Cell

3) Accounting Department

4) Computer Cell

& Industry shall receive this application & place such application on Agenda for the next

meeting of the Executive Committee which shall thereupon consider such application &

can accept or reject the application as described in Articles of Association of the

Gujranwala Chamber of Commerce & Industry.

Functions of Membership Department:Functions of Membership Department:

The Membership Department of Gujranwala Chamber of Commerce & Industry

has performed the following functions;

Issuance of Certificate of Gujranwala Chamber of Commerce & Industry,

Issuance of ID card of Gujranwala Chamber of Commerce & Industry,

Granting Renewal Membership of Certificate of Gujranwala Chamber of

Commerce & Industry,

Attestation of Commercial documents either a member of Gujranwala

Chamber of Commerce & Industry or not, &

Issuance of Visa Letter.

These are all the necessary & main activities which are done by this department

in order to facilities the members of Gujranwala Chamber of Commerce & Industry.

R & D Cell:R & D Cell:

The Research and Development Cell of GCCI was established in 2007, as the focal point

for various activities carried out in the Chamber. It was set up in response to a growing

need from the business community in the region for up to date information on business

and economy, processing the same to facilitate members, and interacting with the

government on macro and micro business and economic policies.

The Department today enjoys an enviable reputation in the country one of the

leading centre for research and analysis on domestic and international business and

economic issues. It is regularly consulted by the government and international agencies

on important national and international policy matters. It is involved in extensive

research used in nearly every discipline for recommendation and analysis of various

national and international policies affecting business, trade and industry.

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Functions of R & D Cell:Functions of R & D Cell:

We are planning to make our R&D cell as a platform that will bring the academia

and industry closer by offering the following opportunities to the students of

management sciences:

Organizing Seminars and Workshops

Acting as a Platform

Internship Opportunities for your students

Seminars and workshops that can be arranged in GCCI as well as in your

respective institutions

Sharing our own research projects and reports with university for their valuable

input

We offer a research facility where students can come and know about the issues

related to Gujranwala industry. They can conduct research projects regarding

these issues and our R&D cell would support them in such projects

Research Reports

Policy Proposals

Accounting Department:Accounting Department:

Accounting department is one of most important department for any organization. As

it records each & every truncations of the business, if the professional & honest staff is

not present in an organization the work of whole organization is highly affected. . So, for

being conduct a profitable business & achieving the goals of an organization is it the first

requirement that all the expenditures & incomes are properly recorded & maintained

honestly & popper audit of these records can prevent from happening of some

irregularities or fraud.

The accounting department of Gujranwala Chamber of Commerce & Industry is

managed trough “Accounting Officer” only. He has performed the both duties of an

accountant & a cashier without any assistant or staff.

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Objectives of Accounting Department:Objectives of Accounting Department:

The objective of Accounts Department is to keep record of all the expenditures &

incomes of the Gujranwala Chamber of Commerce & Industry, & make the financial

statements for the users especially for the members of Gujranwala Chamber of

Commerce & Industry.

Functions of Accounting Department:Functions of Accounting Department:

The Accounting Department of Gujranwala Chamber of Commerce & Industry

has performed the following functions;

Proper Analysis & checking accuracy of accounting information Gujranwala

Chamber of Commerce & Industry.

Proper Recording & Posting of all daily transaction of Expenditure or Income of


Verification of all the invoices approved by Secretary General of Gujranwala


Matching of Records with Membership department for all the Fees received by

membership department of Gujranwala Chamber of Commerce & Industry.

Cross match the accounts with banks accounts of Gujranwala Chamber of


Proper adjustments of the accounts at the end of year in order to timely making

the financial statements of Gujranwala Chamber of Commerce & Industry & to

assisting the auditor for in time audit & for annual report of Gujranwala Chamber

of Commerce & Industry.

Upto date of all the records of Gujranwala Chamber of Commerce & Industry in

order for interim audit of accounts of Gujranwala Chamber of Commerce &

Industry.

The income of Gujranwala Chamber of Commerce & Industry is including;

Membership Fee,

Admission Fee,

Attestation Fee,

Form Fee,

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Visa Letter Fee,

Rental Income

ID Card Fee, &

Miscellaneous Income.

While the expenditure of Gujranwala Chamber of Commerce & Industry are

including;

1. Administrative Expense which are;

Staff Salaries & Benefits,

Utility Bills Expenses,

Rent, Rates & Taxes,

Seminars or Functions,

Research & Development Expenses,

Donations,

Employees Benefits Contribution Programs,

Chamber Shields, &

Miscellaneous Expenses.

The proper & accurate record of all these incomes or expenditure is the function

of Accounting Department of Gujranwala Chamber of Commerce & Industry.

Computer Cell:Computer Cell:

The Computer or Information Technology has changed the traditional way of

doing the business. Due to Globalization it is a prerequisite for any business to grow &

achieve its objective in the global comparative environment. The “Computer Officer”,

Mr. Hafiz Muhammad Barhan headed this department of Gujranwala Chamber of


Objectives of Computer Cell:Objectives of Computer Cell:

The basic idea of Computer Cell is to bring innovation and to keep up with latest

inverted trends of Information Technology. This department is furthermore responsible

for the maintenance & updating the website of the Gujranwala Chamber of Commerce &

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Industry and provides all relevant information to the members of the Gujranwala


Function Performed:Function Performed:

In Gujranwala Chamber of Commerce & Industry, the Computer Officer is solely

responsible for installing and maintaining computer systems. Following are the major

functions and duties performed in this department;

Proper & Proactive management & maintenance of information technology and

computer systems of Gujranwala Chamber of Commerce & Industry.

Proper & efficient application of the operations of information systems and

Electronic Data Processing.

Improvement in Technology & proper implementation of policies and procedures

for electronic data processing. Systems operations and development of


Timely & Updated information shall be uploading as soon as possible for the

benefits of the members of the Gujranwala Chamber of Commerce & Industry.

Monitoring & overcome all the problems of the staff of Gujranwala Chamber of

Commerce & Industry regarding Computer Systems.

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Area of InternshipArea of Internship

I have selected the R & D Cell of Gujranwala Chamber of Commerce & Industry

for my internship. But I am never restricted myself to R & D cell, I am also spend my

time & learn from the remaining three departments of Gujranwala Chamber of

Commerce & Industry. All the departments in Membership Department, Accounting

Department & Computer Cell. So, I have done work in every department of GCCI during

my internship.

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Work Done during InternshipWork Done during Internship

During internship at Gujranwala Chamber of Commerce & Industry, I spend my first

three week in R & D Cell; The Director General of R & D Cell gives me a golden

opportunity to work with him as in R &D cell only Director General is managed the

affairs or work of Gujranwala Chamber of Commerce & Industry. In the first week, he

gives me briefing regarding:

How to make a Chamber news Bulletin?

How to conduct a Research for Chamber members or public?

Chamber News Bulletin:

The Director General of R& D Cell explained me the bulletin means a magazine

which is issue fortnightly by the Gujranwala Chamber of Commerce & Industry, it is the

requirement of every chamber to issue news bulletins & it includes following parts;

1. President Message; the message from the President of the Gujranwala Chamber

of Commerce & Industry.

2. Columns or General Articles; means write articles like on Unemployment or

Energy Crisis or other that affect the import or exports of the goods.

3. Trade Opportunities, it involves two elements;

a) Wish to Buy,

b) Wish to Sell

4. Up Coming events across the world, it includes the upcoming exhibitions or

seminars.

5. International Tenders,

6. Urdu Section, &

7. Pictorial views

He has given me some data in from of books & articles for analytical review & for

me guide. These articles & books are proof very helpful for me during internship.

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Research:

He explained that, we conduct research on the industrial sector in order to

improve or solve the problems of commerce & industry in Gujranwala. He said that, first

of all us;

Define Problems or term of reference

Identifying the Variable,

Theoretical frame work ,

Design & Methodology, &

Physical implementation

The same research, as I have taken course as Business Research Methods, it is really

good for me to learn the practical knowledge of research. In the library of the

Gujranwala Chamber of Commerce & Industry a lot of books, reports or bulletins of

different cities are prove very helpful in analytical review.

In the second week of the internship, I am working with Director General &

assist him in making the Chamber news bulletin & Director General has helped me &

gives me mistakes in order to improve my skills & politely .

In the 3rd week of internship Director General has given me an assignment to

make country Profile of 5 countries;

1) Germany,

2) Bosnia,

3) Vietnam,

4) Chili, &

5) South Africa

My requirement in this assignment is the following:

Economy of the Country,

Geographic & economic steeps; it includes;

Official Name,

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Location,

Boarder Countries

Form of Govt.

Head of State,

Population,

Area,

Pakistan’s Balance of Trade with Germany,

Pakistan’s op ten exports to the Germany,

Pakistan’s op ten exports to the Germany,&

Key economic indicators.

After the submission of the above assignment, I have started my working in other

department n order to take the full practical experience of GCCI.

I have worked for Membership department for one week in forth week. At

membership department, I have learned how to issue a certificate of the membership the

Gujranwala Chamber of Commerce & Industry. They procedure is to renew the

membership of Gujranwala Chamber of Commerce & Industry. The main function of

this is the issuance of membership ID card, attestation of commercial documents for

exports Gujranwala Chamber of Commerce & Industry, Visa etc.

The whole work of the Gujranwala Chamber of Commerce & Industry can be

understood by the help of 2 legal documents f the GCCI.

Memorandum of Assosiation, &Memorandum of Assosiation, &

Atticles of Assosiation.Atticles of Assosiation.

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Memorandum & Articles of AssociationMemorandum & Articles of Association


Chamber Plaza, Aiwan-e-Tijarat Road, Gujranwala - Pakistan

Tel: 055-3256701~4, Fax: 055-3254440

Web: www.gcci.org.pk

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http://www.gcci.org.pk/

Memorandum of Association:Memorandum of Association:

The Memorandum of Association (MoA) is the Chartered or constitution of the

Company. It lays down the objective, scope of activities of the company & defines the

company relationship with outside world. The MoA of GCCI is as follows,

1. The name of association is "The Gujranwala Chamber of Commerce & Industry”,

Gujranwala.

2. The registered office of the Chamber will be situated in the province of Punjab.

3. The objects for which Chamber is established are;

a. To promote, aid, develop, stimulate and protect the economic interest of

Pakistan in general and of those engaged in industry, agriculture, commerce,

trade, banking and insurance, in particular.

b. To consider all questions connected with trade, industries, agriculture,

manufacture and commerce & to initiate and or support necessary action connected

therewith.

c. To consider, support or oppose legislative or other government measure

affecting the economic businessmen and industrialists and also make

representations to Government on grievances, if any.

d. To adjust controversies between members of the Chamber.

e. To collect and circulate statistics and other information-relating to the

commercial, industrial, agricultural and financial interest of the businessmen and

industrialists.

f. To arbitrate in settlement of disputes arising out of commercial transactions

between parties willing or agreeing to abide by the judgment and decision of the

Chamber.

g. To form a code of practice to simplify and facilitate transactions of business and

to frame bye-laws; rules & regulations for the officers of the Chamber to carry out

various objects of the Chamber.

h. To communicate with the Chambers of Commerce & Industry or public bodies

within or outside Pakistan and to concert and promote measures for the

protection of trade, commerce and manufacturers and the labour engaged therein

and to remove mutual hardships.

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i. To purchase and construct, take on lease or in exchange, hire otherwise acquire

land and building and all other property, moveable or immovable, which may be

deemed necessary for the purposes of the Chamber.

j. To sell, improve, manage, develop, mortgage, dispose of or otherwise deal with

all or any part of the property of the Chamber.

k. To borrow or raise money for the purpose of the Chamber upon such terms and in

such manner as the chamber may think fit.

l. To subscribe or become a member of, and co-operate with the Federation of

Pakistan Chamber of Commerce & Industry, and procure from and communicate

with any Chamber and Association of trade and industry such information as may

be likely to forward the cause of this Chamber.

m. To accept bequests, donations or subscriptions towards or to accumulate and

provide a fund or endowment or wake and to invest the same and apply the

income arising therefrom or to resort to the capital thereof, for any objects of the

Chamber.

n. To aid and to receive aid from any other society, Association, Company,

Corporation, firm, Partnership or person promoting or formed or intended to

promote any of the objects of the Chamber, Corporation partnership or person,

with a view to obtain any advantage or benefit for the purposes of the Chamber &

to subscribe to any fund or Society, as may be considered from time to time.

o. To subscribe to any local or other charities and to grant donations for any public

provident or superannuation fends for the employees of the Chamber or otherwise

to assist any such employees of their widows and children.

p. To draw, accept, bills, handiest, notes or other negotiable instrument and to invest

in or operate the accounts of the Chamber with any Bank or Bankers.

q. To establish a commercial & statistical Library.

r. To remunerate any person or company for service rendered or to be rendered in

placing or assisting to place or guaranteeing to place any debentures or other

securities of the Chamber.

s. And generally, to do all that may be necessary to attain the above objects of the

Chamber directly or indirectly and to do all such other things as may be

conducive to the development of trade, commerce, industry, agriculture, banking

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and insurance, among the businessmen and industrialists in Pakistan and

Gujranwala district in particular.

4. The income and property of the chamber, When-so-ever derived shall be applied

solely towards the promotion of the objects of the Chamber as set-forth in this

5. Memorandum of association, and no portion thereof shall be paid or transferred

directly or indirectly by way of dividend, bonus, or otherwise, howsoever, by way of

profit to the members of the Chamber provided that nothing herein shall prevent the

payment in good faith of remuneration to any member of the Chamber, or any other

person in Return for any service actually rendered to the Chamber.

6. The paragraphs 4 and 9 of this Memorandum are conditions on which a license is

to grant by the Federal Government the Association in the pursuance of Section

26 of the Companies Ordinance 1984.

7. Every Corporate Member, Associate Member and Town Association affiliated

with the Chamber undertakes to contribute to the assets of the Chamber in the

event of the same being wound up, during the time that he is a member or within

one year afterwards, for the payment of the debts and liabilities of the Chamber

contracted before time at which he ceased to be a member and of the costs, charges

and expenses of winding up the same and for adjustment of the rights of the

contributors amongst themselves, such amount as may be required not exceeding

the sum due upto the date of such winding up on account of subscription.

8. If any member of the Chamber pays or receives any dividend, bonus, or other

profit in contravention of the forth paragraph of this Memorandum, his liability

shall be unlimited except as above the liability of the member is limited.

9. If upon winding up or dissolution of the Chamber, there remains after the

satisfaction of all its debts and liabilities, any property, whatsoever, the sum

shall not be paid to or distributed amongst the members of the Chamber but shall be

given or transferred to some other institution or institutions having objects similar

to objects of the Chamber which shall prohibit the distribution of its or their income

and profit among its or their members to an extent as great as is imposed on the

Chamber under or by virtue of the fourth paragraph thereof such institutions to be

determined by the majority of the members of the Chamber at or

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before the tin-default thereof by such judge of the Court in Gujranwala, as may have

or acquire jurisdiction in the matter.

10. Amendments to the Memorandum of association shall be subject to the approval of

the Government & shall also be made when required by the Government in public

interest.

11. The jurisdiction of the Chamber will extend to the district of Gujranwala and areas

as may be defined by the Federal Govt. from time to time..

Articles of Association:Articles of Association:

The Articles of Association (AoA) is the document about the internal affairs of a

business. The AoA of Gujranwala Chamber of Commerce as follows;

1) The Gujranwala Chamber of Commerce & Industry, Gujranwala is established

with the limited liability of members but if any member of the Chamber pays or

receives any dividend, bonus or other profit, in contravention forth paragraph

of the Memorandum of the Chamber his liability shall be unlimited in

accordance with & subject to the provisions of the Companies Ordinance, 1984.

2) The regulation for the management of the Chamber and for observance of the

members thereof & their representatives shall, subject to exercise of the statutory

power of the Chamber in reference to the repeal or addition to its regulation by

special resolution as prescribed by the Companies Ordinance , be such as are

contained in these Articles.

Definitions

1) In the interpretation of these Articles, the following words and expressions shall

have the following meanings unless repugnant to the subject or context.

1. "The Chamber" means the Gujranwala Chamber of Commerce &

Industry.

2. '"Member" means a member of the Chamber.

3. ''Corporate Member" means a member of the Chamber which is either a

body corporate or multinational corporation with its head office or branch

office in Pakistan or a sales-tax registered a sales-tax-registered business

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concern having annual turn-over of Rs. 50 million or above.

4. "Associate Member" means a member of the Chamber which is not a

Body corporate or a multinational corporation or a sales tax registered

manufacturing concern or a sales-tax-registered business concern having

annual turn-over of, Rs. 50 million or above;

5. '"Women entrepreneur" means a sole proprietorship where the proprietor is

a female; or a partnership, where the majority partners are female(s) or an

association of any kind where the majority of person forming the

association are female; or a company where the majority shares are held

by female.

6. "Town Association" means a Town Association, organized to represent

trade, industry or tehsil, taluka or a district where there is no chamber and

such Town Association shall be Chamber.

7. ''General Meeting" means the General Meeting of the Chamber.

8. "Special General Meeting" shall means and includes Extraordinary

General Meeting under the Ordinance 1984.

9. The "President" means the President of the Chamber.

10. The "Vice President" means the Vice President of the Chamber.

11. “Secretary General" means an individual professional full-time employee

of the Chamber who shall be incharge of the secretariat of the Chamber

and responsible for day-to-day operations of the Chamber & in his capacity

as such shall be the custodian of ail record pertaining to the Chamber.

12. "Officer Bearer" means and includes the President and the Vice

President.

13. "General Body" mean all members of the Chamber.

14. "Committee" means the Executive Committee of the Chamber.

15. "Executive Committee" means the Board of Directors, the Managing

Committee or any other body, by whatever name called, of the Chamber

responsible for the management or conduct of the affairs of the Charr.ber.

16. “Committee Meeting" means a meeting of the members of the Executive

Committee duty called and constituted.

17. “Plan of activities" means a list of proposed activities, expected financial

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expenditures and outcome and intended goals for the trade organization as

provided in rule 25;

18. “Office" means the registered office of the Chamber.

19. "Service Rules" means the service rules framed by the Executive

Committee of the Chamber, governing the terms & conditions of services

etc. of the paid employees of the Chamber.

20. "District"' means the District Gujranwala.

2) For the purpose of registration, the Chamber is declared to consist of unlimited

number of members.

3) The Chamber is established for the purposes expressed in the Memorandum of

Association of the Chamber.

Business Place

The registered office of the Chamber shall be at Chamber Plaza, Aiwan-e-Tijarat

Road, Gujranwala & the business of the Chamber shall be carried on at this place and on

such other places in Pakistan as fall or may fall within jurisdiction of the Chamber.

Classes of Membership

There shall be following classes of members who may be either local or outstation

members. Namely:

a) Corporate Members

b) Associate Members

c) Town Association

A body corporate or a multinational corporation with its head office or branch

office in Pakistan or a sales-tax registered manufacturing concern or a sales-tax-

registered business concern having annual turn-over of Rs. 50 million or above engaged

in trade, commerce, manufacturing, industry, transport, banking, insurance, accountancy or

mining or any other lawful business for profit shall be eligible for enrolment as a Corporate

Member, in their conventional or corporate name provided they have their principal place

of business or Head Office situated in the areas falling within the jurisdiction of the

Chamber.

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Associate member means a member of the Chamber which is not a body corporate or

a multinational or a sales-tax registered manufacturing concern or a sales-tax-registered

business concern having annual turn-over of Rs. 50 million or above engaged in trade,

commerce, manufacturing, industry, transport, banking, insurance, accountancy or

mining in any particular branch or these lines, also persons engaged in or connected

with economics, arts, sciences or literature bearing upon trade, commerce, finance,

industry, mining, manufacturing, agriculture or transport Or any other lawful business

for profit provided they have their principal place of business or Head Quarter situated

within the jurisdiction of the Chamber.

These will be Associations organized to represent trade, industry or service in a

Town, Tehsil. Taluka or a District, where there is no Chamber of its own and such

Town Association shall be affiliated with the Chamber.

Rate of Annual Subscription

Any candidate for membership shall have to pay as Admission Fee and Annual

Subscription according to the following rates: The membership fee chargeable

from each class shall be fixed by the Executive Committee subject to approval of the

General Body and Director General.

Class of

Membership

Admission Fee Annual

Subscription

Corporate Members Rs. 300/- Rs, 1000/-

Associate Members Rs. 300/- Rs. 500/-.

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Town Association Rs. 2000/- Rs. 100/-

Accounting year of Chamber of Commerce and Industry will be closed on 30th

June each year & its financial Statements are duly audited by a Chartered Accountant

along with a list of members as on 30th September shall be furnished by Chamber to the

Director General, Trade Organization, on or before the 31st day of December of every

year. Subscription for the whole year paid in any month from April to March shall be

counted for the year commencing from 1st April, and the subscription paid in any month

form October to March shall be counted for the year commencing from 1st October.

Renewal of Membership

The membership shall be renewable on annual basis subject to fulfillment of

following conditions, namely:-

a. Payment of prescribed subscription within the time stipulated in the

memorandum, which shall not be later than 3Ist of March; and for the first year

the renewal shall be carried out by 30th June 2007.

b. Proof of filing return of income tax and sales tax, if applicable, for the

preceding year.

Representation in the Chamber

Subject to the provisions and restrictions in these Articles or any rules made

thereunder the rights and Privileges of membership may, in the case of a firm

enrolled in the conventional name as a member of the Chamber, Be exercised by any

partner in such firm or by any Manager or other responsible officer of such

partnership, and may, in the case of a Joint Stock Company or other corporation,

enrolled in their corporate name as a member of the Chamber, be exercised by a

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Director, Manager, Secretary or any responsible officer of the company subject,

nevertheless, to the following reservations, namely;

i. Partners of a firm, directors of Joint Stock Company or other corporation,

their managers, secretaries or other responsible officers entitled under this

Article to exercise the rights and privileges of membership must have their

names registered in books of the Chamber in the manner prescribed in order

to exercise the aforesaid rights and privileges.

ii. For each act of exercise of the rights and privileges of membership by a firm,

company or member, only one representative shall be recognized.

iii. Unless otherwise determined by the Committee only one registered

representative of the firm, company or other

Corporation members shall be entitled to attend a meeting of the Chamber &

take part therein.

iv. A member may replace his representative at any time during the year for the

purpose of Article 37 but if he is already represented on the Executive

Committee or any sub Committee he shall continue to serve on it until the new

Executive Committee is elected or the Sub Committee is reconstituted only if

nomination IS RECEIVED BY THE Secretary General under Article 21, Subject to

Article 16, provided that such a REPRESENTATIVE TO resign from the Committee or

Sub-Committee at any time.

Application of Membership

Every application for membership shall be in the form prescribed by the Executive

Commit tee accompanied with the admission fee and subscription for the first year

and be forwarded to the Secretary General of the Chamber, who shall on receipt of

the same, place such application on Agenda for the next meeting of the Executive

Committee which shall thereupon consider such an application and accept or reject the

same. In the case of acceptance the date of submission of application will be considered, as

the date of enrollment as the member of the Chamber for all purposes. In no case shall

the Executive Committee give any reason for rejection of the application... If the

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Majority of the members of the Executive Committee vote against the admission, the

application shall be deemed to be rejected.

Cessation of Membership

A member shall cease to be a member of the Chamber:

On his being adjudicated insolvent or in the case of a company or corporation;

when winding up orders have been passed with regard to such company or

corporation or when it has gone into voluntary winding up except for the purpose

of reconstitution;'

If he fails to pay the annual subscription, at the latest by 31st March.

In the case of a firm, Joint Stock Company or other corporation upon any change

being made in the name of company or corporation and the change name is not

duly intimated to the Secretary General along with the failure to deposit the annual

subscription for current voting year on or before 31st March.

On his ceasing to be qualified or eligible for membership in terms of these Articles;

In the case of an individual when he has been proved to be of unsound mind or

has been convicted for an offence involving moral turpitude;

If he or she fails to comply with the requirements of Article No. 15.

When an individual, firm, company or corporation has ceased to be a member of the

Chamber, such individual or representative of such company or corporation shall

automatically cease to be a member of Executive Committee, if he was so elected, and

cease to serve as a representative of the Chamber on any public bodies.

Liability to pay dues after Ceasing

Any member, who, by any reason, ceases to be a member, shall nevertheless remain

liable for and shall pay to the Chamber all moneys which at the time of such cessation of

membership may be due from such member to the Chamber.

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Affiliation

a) Any association, corporation, institution or body whose objects are similar to

those of the Chamber may be affiliated with the Chamber upon such terms and

conditions as the Executive Committee may deem fit.

b) The Chamber shall not secure affiliation with any international or foreign body,

and shall not extend invitations to any foreign organizations or individuals or

accept any invitations from them. For participation in any conferences or

functions to be held Pakistan or abroad, without the prior permission of the

Government.

Privileges of Membership

Subject to the restrictions contained in the provisions of these Articles generally, or

any bye-laws framed thereunder, any member, shall, among others, have the following

rights and privileges:

To obtain copy of the annual report and accounts;

To obtain all other publications of the Chamber either free of cost or at such

reduced rates as Executive Committee may from time to time decide;

To have the free use of the library of the Chamber;

To be present and discuss and vote at any General Meeting or any question

referred to such General Meeting or to give opinion on any question referred to

the general body of members by circular or otherwise;

To nominate other qualified members for election or be elected to the Executive

Committee or other Committee or Committees to join any deputation on behalf of

the Chamber, or be elected to any office of the Chamber;

To stand for election as representative of the Chamber to any public and private

bodies;

To seek the help of the Chamber in obtaining statistical or other information for

the protection and advancement of business and to receive such particulars as may

be available with the Chamber in regard to trade enquires or information regarding

Governmental or other measures affecting the trade; To apply for the assistance of

the Chamber for securing to him all reasonable facilities for the carrying on of the

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Business and for redress of all reasonable grievances;

To see the Minutes Book of the Executive Committee meeting for which he shall

have to give notice of 24 hours to the Secretary General and seek his permission

or he shall have to obtain the permission of the President in writing.

Registration

Any member withdraw from the Chamber by giving one month's notice in

writing to the Secretary General of his intention to do so and upon expiration of the

notice, such member shall cease to be a member of the Chamber subject to Article no.

18.

Administration

The Administration of the affairs of the Chamber shall be vested in a body called the

Executive Committee herein referred to as the Committee.

Composition of the Executive Committee

Composition of Executive Committee points;

a) The Executive Committee of the Chamber shall comprise persons elected by the

General Body from amongst its members, subject to the following, namely:-

b) There shall be maximum thirty seats of Executive Committee.

c) At least fifty per cent of the members of Executive Committee shall be from the

corporate class,

d) The Electoral College for each class of members of Executive Committee shall be

the member of General body from the respective class.

e) In addition to the seats provided in clause (a), the immediate past President shall be

an ex-officio member of the Executive Committee without voting right.

i. There shall be two seats of Executive Committee reserved for women

entrepreneurs for which the Electoral College shall be the Executive Committee.

ii. There shall be one seat reserved for nominee of each Town Association affiliated

with the Chamber,

iii. If any seat reserved for any of the stipulated categories remains vacant, it shall

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Not be filled with members from other category: provided that any seats

remaining vacant in any category shall not be counted towards determination of

quorum.

iv. In the General Body comprises at least fifty per cent members from Associate

Class; there shall be rotation of office of President between the Associate and

Corporate Members.

v. Where there is rotation of office of the President, the President and Vice-President

shall not be from the same class of members. .

vi. Where there is rotation of office of the President, the President and Vice-President

shall not be from the same class of members. .

vii. Office bearers of the Chamber shall be elected by the Executive Committee from

amongst its members.

viii. The tenure of all elected office bearers shall be one year.

ix. The tenure of members of Executive Committee shall be two years subject to the

following'

a) 50 or fifty per cent members of the Executive Committee shall retire every year.

b) After the first election of the Executive Committee a draw shall be made to

determine, the fifty percent members who shall retire after expiry of first year.

x. The tenure of office bearers of Executive Committee shall be one year.

On completion of the term the office bearers and members of Executive

Committee shall not be eligible to contest election or co-option in any representative

capacity in the Chamber for the next one year

Office Bearer & their Election

1) Chamber shall comprise of a President and a Vice-President who shall be elected

from the Executive Committee of the Chamber.

2) The tenure of all elected office bearers shall be one year.

3) On completion of the term the President, Vice-President shall not be eligible to

contest election or co-option in any representative capacity in the Chamber for the

next one year.

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Casual Vacancy

Casual vacancies of members shall be filled by co-option by the Executive Committee

from amongst the class of membership to which the out-going member belonged. Those

of the Vice President shall be filled the Executive Committee by election from amongst

its existing members and the resultant vacancy of the member shall be filled by co-option

from amongst the members otherwise eligible to be elected. Provided that no such

vacancy shall be filled under this clause during the first 90 days as well as 270 days after

the holding of the annual election.

On retirement from the Committee, the retiring representative or his firm acting

through any other representative shall not be eligible to stand for election to the

Committee for the next one annual term.

Edibility to Vote

The eligibility of a member of the Chamber to vote at the elections of the

Chamber shall be subject to following conditions;

the member has completed two years of valid membership of the Chamber as on

the date of announcement of election schedule by the Executive Committee of the

Chamber; and he has member fulfilled the conditions of membership and renewal

thereof of the Chamber.

Every member eligible to vote shall deposit with the Secretary General, the

specimen signature card along with photograph indicating the status in the firm,

company or concern. The right to vote shall allow only to proprietor, partner or

the director of the member firm or company, or a person not below the rank of

General Manger authorized by the Board of Directors of a public limited

company, private limited company or a multi-national as the case may be.

The proprietor or, partner or director of the member firm or company, concern or a

person not below the rank of General Manger authorized by the Board of

Directors of a public limited company, private limited company or a multi-

national shall be entitled to cast vote at the time of election only if such person

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has already been registered with the Secretary General and his name appears on list

of Voters.

Appointment of Election Commission

1) The Executive Committee of the Chamber shall appoint an election commission

subject to the following conditions:

2) The Executive Committee of the Chamber shall appoint an election commission

subject to the following conditions:

3) the commission shall comprise of three members;

4) the members so appointed have submitted their consent in writing to their

appointment as such;

5) the members of the commission, so appointed, have not held any office of the

Chamber for the proceeding two years; the members of the commission shall not

be entitled to become a candidate in the election, they are conducting;

6) the members of the commission shall he independent, impartial and non-partisan;

and

7) The members of commission shall not canvass for any of the candidates or panels

consenting the election, they are conducting.

Functions of Election Commission

The election commission shall be incharge of all arrangements connected with

the conduct of elections including but not limited to;

Appointment of polling staff;

Ensuring display of the tentative voters' list by the Secretary General for the

purpose of inviting objections;

Elimination of and decision on the objections received on the voters' list; and

Supervision of polling process and ensuring that the polling has been conducted

in an orderly, peaceful, transparent and fair manner in accordance with the

provisions of the memorandum & articles of association & instructions of the

Federal Government or the Director General in this regard; &

Counting of votes &announcement of results.

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Election Procedure

The election of the Chamber shall be conducted according to the law & procedure

laid down in Articles of Association subject to the following:-

The polling shall be held simultaneously at the head office, regional offices or

where the number of voters exceeds fifty at the branch offices of the Chamber: Provided

that where for want of space in the office premises it is not possible to establish the

polling booths, the polling shall be held in a public place such as a community hall or hotel.

The Election Schedule of the Chamber shall be approved by the Executive

Committee of the chamber &. The Completion process, for the conduct of the same

between 1st of July to 30th of September of each calendar year. The Executive

Committee shall affect its approval and within ten days of its approval having taken

place not later than the first half of July .shall is issued by the Secretary General.

The Secretary General of the Chamber shall display within seven days of the

schedule the provisional list of all members eligible to vote along with their national tax

number, sales tax registration number, if applicable, the name and national identity card

number of their representative shall be displayed at:

the notice board of the head office and regional offices of the Chamber; and

The website of the Chamber.

The members who have any objection to the entries in the list of voters shall send

their objections in writing to the Secretary General within seven days of the

issuance of the voters' list.

The Secretary General will intimate action on the objections or changes sent by

members within five days from the last day under preceding clause.

Any person aggrieved by the decision of the Secretary General may make a

representation, within 3 days to the election commission, which shall decide the

case within 3 days.

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Within three days of decision by the Commission or in case the Commission fails

within stipulated time, any person aggrieved by the decision of the Commission may

appeal to Director General who shall decide the case within 10 days and his decision in this

regard shall be final.

Within two days of the decision of the Director General the final voter's list shall be:

1) Displayed at the notice board of the head office and regional offices of the

Chamber.

2) displayed at the website of the Chamber; and

3) Submitted to the Director General: Provided that if no appeal has been filed to the

Director General, the final list of voters shall be displayed within 15 days of the

decision of the election commission.

Within 4 days of the display of the final list of voters, any person who is eligible to

contest the election for the vacant post, shall send his nomination duly proposed and

seconded by a duly registered voter & signed by the candidate to the Secretary General

on the prescribed form in accordance with the Article of Association or rules of the

Chamber.

Within 24 hours of receipt of nomination papers, a copy of the final list of voters

shall be provided to each contesting candidate.

The nomination paper shall be scrutinized by the commission and list of candidates

shall be displayed within 24 hours of the last date of receipt of nomination papers.

The objections, if any, to the nomination of the candidates can be filed to the election

commission within 24 hours of issuance of the list of candidates, which shall be decided by

the election commission within two days.

Within two days of the decision of the Commission fails to decide within stipulated

time, any person aggrieved by the decision of the Commission may appeal to Director

General, who shall decide the case within 7 days and his decision in this regard shall be

final.

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Within two days of the decision of the Director General the Commission shall issue the

final list of candidates: provided that if no appeal has been filed to the Director, the final list

of candidates shall be issued within 11 days of the decision of the election commission.

Within five days of display of final list of candidates, the poling for election of

members of Executive Committee shall be held.

Within 2 days of the poling any person elected as members of the Executive

Committee, shall send his nomination for election as office bearers duly proposed &

seconded by an elected Executive Committee members & signed by the candidate to the

election commission.

The nomination paper shall be scrutinized by the commission and list of candidates

shall be displayed within 24 hours of the last date of receipt of nomination papers.

Within 2 days of display of final list of candidates, the poling for election of

office bearers shall be held.

The final result of the election of members of Executive Committee and office

bearers announced at the annual general meeting of the Chamber called for this purpose

within 15 days of the date of poling under the preceding clause but not later than 30 th of

September of the Calendar year.

1) The final election results announced in the annual general meeting shall be:

2) displayed at the notice board of the head office and regional office of the Chamber

3) displayed at the website of the Chamber within 2 days and

4) Submitted to the Director General within 7 days.

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After learning a lot of information from Membership department, I ha Gujranwala

Chamber of Commerce & Industry, I have spent my second last week in accounts

department. An accountant performed the accountant as well as accounting & cashier

jobs. He has shared his working with me & see me all the vouchers & invoices & also

the way to enter them in the records or journal or Leaders of the GCCI.

In the last week of internship I have spent my time at Computer Cell & check the

network where the records or information about Gujranwala Chamber of Commerce &

Industry, & how the maintain & support the Gujranwala Chamber of Commerce &

Industry, web sites content. I have also observed how the data process is support the

activity of the Gujranwala Chamber of Commerce & Industry.

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Financial AnalysisFinancial Analysis

Financial Analysis means Financial Statement Analysis. Financial statement

analysis is basically is the process of examining relationships among financial statement

elements and making comparisons with relevant information. It is a valuable tool used by

the users of Financial Statements like, investors and creditors, financial analysts, and

others in their decision-making processes related to stocks, bonds, and other financial

instruments. The goal in analyzing financial statements is to assess past performance &

current financial position and to make predictions about the future performance of a

company.

Different users like, Investors who buy stock are primarily interested in a

company's profitability and their prospects for earning a return on their investment by

receiving dividends and/or increasing the market value of their stock holdings. Creditors

and investors who buy debt securities, such as bonds, are more interested in liquidity and

solvency: the company's short-and long-run ability to pay its debts. Financial analysts,

who frequently specialize in following certain industries, routinely assess the

profitability, liquidity, and solvency of companies in order to make recommendations

about the purchase or sale of securities, such as stocks and bonds.

Analysts can obtain useful information by comparing a company's most recent

financial statements with its results in previous years and with the results of other

companies in the same industry.

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Financial Statements of GCCI:Financial Statements of GCCI:


Statement of Financial Position

Non Current Assets 2009

Rs

2008

Rs

2007

Rs

Operating Fixed 10,365,000.23 6,470,811.20 6,697,904.22

Deferred Costs 278,841.00 242,841.00 242,841.00

Total Non Current 10,643,841.23 6,713,652.20 6,940,745.22

Current Assets

Advances, Deposits 5,351,821.00 4,587,287.61 4,238,979.00

Stationery Stock 93,505.00 85,320.00 75,950.00

Receivables 1,100,079.00 1,343,048.00 1,244,454.00

Cash & Bank Balances 3,767,717.39 10,195,760.82 9,685,505.10

Total Current Assets10,313,122.39 16,211,416.43 15,244,888.10

Total Assets 20,956,963.62 22,925,416.43 22,185,633.32

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Capital&Liabilities

Capital Fund 20,635,193.62 22,708,644.63 21,924,405.32

Current Liabilities

Accrued & Payable Expenses 321,770.00 216,424.00 261,228.00

Statement of Financial Performance:Statement of Financial Performance:


Statement of Financial Performance

Particulars 2009

Rs

2008

Rs

2007

Rs

Income 10,311,997.68 10,620,421.88 10,204,367.00

Expenditure

Administrative Exp 12,365,448.69 9,836,182.57 8,924,870.56

Surplus / (Deficit) (2,053,451.01) 784,239.31 1,279,505.44

Capital Fund b/f 22,708,644.63 21,924,405.32 19,225,678.88

Total 20,655,193.62 22,708,644.63 20,505,184.32

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Donations - - 600,000.00

Prior Period Adjustment (20,000.00) - 819,221.00

Capital Fund c/f 20,635,193.62 22,708,644.63 21,924,405.32

Types of Financial Analysis:Types of Financial Analysis:

Following are the different types of financial statement analysis:

Horizontal Analysis,

Vertical Analysis,

Ratio Analysis,

DuPont Analysis, &

Altman Z-Score

In the financial Analysis of Gujranwala Chamber of Commerce & Industry a have done

the analysis of three primary types of Financial Statement Analysis;

1. Horizontal Analysis,

2. Vertical Analysis, &

3. Ratio Analysis

Horizontal Analysis:Horizontal Analysis:

Horizontal analysis refers to the comparison of financial statement data of a

company for several years. It is used to evaluate the trend in accounts over the years.

This analysis considers changes in items of financial statement from a base year to the

following years to show the direction of change. This is also called “Dynamic Analysis”,

as it based on data from year to year rather than data of one year. In this, the figures of

various years are placed side by side in years are placed side by side in adjacent columns

in the form of comparative financial statements.

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Under this I prepare Comparative Balance Sheet or Statement of Financial

Position & Comparative Income Statement or Statement of Financial Performance.

Comparative Statement of Financial Position:Comparative Statement of Financial Position:

Gujranwala Chamber of Commerce & Industry

Comparative Statement of Financial Position

As at 2009, 2008 & 2007

Non Current Assets2009

Rs

2008

Rs

2007

Rs

Changes

2009-08

%

Changes

2008-07

%

Operating Fixed 10,365,000.23 6,470,811.20 6,697,904.22 60.18 (3.39)

Deferred Costs 278,841.00 242,841.00 242,841.00 14.82 -

Total Non Current 10,643,841.23 6,713,652.20 6,940,745.22 58.54 (3.27)

Current Assets

Advances, Deposits 5,351,821.00 4,587,287.61 4,238,979.00 16.67 8.22

Stationery Stock 93,505.00 85,320.00 75,950.00 9.59 12.34

Receivables 1,100,079.00 1,343,048.00 1,244,454.00 (18.09) 7.92

Cash & Bank Balances 3,767,717.39 10,195,760.82 9,685,505.10 (63.05) 5.27

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Total Current Assets10,313,122.39 16,211,416.43 15,244,888.10 (36.38) 6.34

Total Assets 20,956,963.62 22,925,416.43 22,185,633.32 (8.59) 3.33

Capital&Liabilities

Capital Fund 20,635,193.62 22,708,644.63 21,924,405.32 (9.13) 3.58

Current Liabilities

Accrued & Payable

Expenses

321,770.00 216,424.00 261,228.00 48.68 (17.15)

Interpretation Statement of Financial Positions:Interpretation Statement of Financial Positions:

The Horizontal analysis of 2009-08 is compared to the previous year’s figures.

As the total non current assets are significantly increase by 58.4% as compared (3.27%)

of GCCI but Cash & Bank balances of the GCCI are significantly decreased by 63.05%

as compared to 5.27% of the 2007-08 comparison & The current assets are decreased by

36.38% as compared to positive 6.34%. The overall total assets of the GCCI are also

decreased in 2008-09 as compared to previous year.

The Capital fund which is funds used for all the purposes of GCCI is also reduced

by 9.13% as compared to the previous year which is 3.58% positive. The Liabilities of

the GCCI is also increased significantly increased by 48.68% as compared to 17.15%.

So, the more significant fluctuations in 2009-08 show that the performance of this is very

poor as compared to last year.

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Comparative of Financial Performance:Comparative of Financial Performance:


Comparative Statement of Financial Performance

For the Year Ended 2009, 2008 & 2007

Particulars 2009

Rs

2008

Rs

2007

Rs

Changes

2009-08

%

Changes

2008-07

%

Income 10,311,997.68 10,620,421.88 10,204,367.00 (2.90) 4.08

Expenditure

Administrative Exp 12,365,448.69 9,836,182.57 8,924,870.56 25.71 10.21

Surplus / (Deficit) (2,053,451.01) 784,239.31 1,279,505.44 (361.84) (38.71)

Capital Fund b/f 22,708,644.63 21,924,405.32 19,225,678.88 3.58 14.04

Total 20,655,193.62 22,708,644.63 20,505,184.32 (9.04) 10.75

Donations - - 600,000.00 - (100.00)

Prior Period Adjustment (20,000.00) - 819,221.00 - (100.00)

Capital Fund c/f 20,635,193.62 22,708,644.63 21,924,405.32 (9.13) 3.58

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Interpretation Statement of Financial Performance:Interpretation Statement of Financial Performance:

The Horizontal Analysis of the statement of finical performance of 2009-08 is

poor as compared to the figures of 2008-07. As the income in this year is decrease, as

compared to previous year (2.90%) as compared to 4.08%. the administrative expenses

of 2009-08 is significantly increase as compared to the year 2008-07. The total capital

fund of GCCI is also decrease by (9.04%) which is positive 10.75%. this is not a good

sign the funds of the GCCI is reduced, this can create a greater trouble for GCCI, if these

are not increase in the next year.

Vertical Analysis:Vertical Analysis:

Vertical Analysis refers to the study of relationship of various items in the

financial statement of one accounting period. It means an analysis that displays all items

as percentages of a common base figure like Sales in Income Statement & Total Assets

in Balance Sheet. All other accounts on the financial statement are

compared to it. In the balance sheet, for example, total assets equal

100%. Each asset is stated as a percentage of total assets. Similarly,

total liabilities and stockholders' equity are assigned 100% with a

given liability or equity account stated as a percentage of the total

liabilities and stockholders' equity. For the income statement, 100% is

assigned to net sales with all revenue and expense accounts related to

it. .

This is also called “Static Analysis”, as it based on data of one year only rather

than data from year to year. Under vertical analysis, the statements showing

the percentages are referred to as Common Size Financial Statements.

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Common Size Statement of Financial Position:Common Size Statement of Financial Position:


Common Size of Financial Position

As at 2009, 2008 & 2007

Non Current Assets 2009

%

2008

%

2007

%

Operating Fixed Assets 49.46 28.23 30.19

Long Term Deposits, Prepayments & Deferred Costs1.33 1.06 1.09

Total Non Current 50.79 29.28 31.28

Current Assets

Advances, Deposits & Prepayments 25.54 20.01 19.11

Stationery Stock 0.45 0.37 0.34

Receivables 5.25 5.86 5.61

Cash & Bank Balances 17.98 44.47 43.66

Total Current Assets 49.21 70.71 68.72

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Total Assets

100.00 100.00 100.00

Capital&Liabilities

Capital Fund

98.46 99.05 98.82

Current Liabilities

Accrued & Payable Expenses1.54 0.94 1.18

Interpretation Statement of Financial Positions:Interpretation Statement of Financial Positions:

The Vertical analysis of 2009, 2008 & 20007 is compared to the previous year’s

figures. As the total non current assets are significantly increase by 50.79% as compared

29.28%these are reduce in 2008 but now significantly increase show a good sign for

GCCI. But Cash & Bank balances of the GCCI are significantly decreased by 19.98% as

compared to 44.47% of the 20008 comparison & the current assets are decreased by

49.21% as compared to positive 70.71% which is increase from previous year but great

fall again. The overall total assets of the GCCI are also decreased in 2008-09 as

compared to previous year.

The Capital fund which is funds used for all the purposes of GCCI is also reduced

by 98.46% as compared to the previous year which is 99.05% positive. The Liabilities of

the GCCI is also increased significantly increased by 1.54% as compared to 0.94%. So,

the more significant fluctuations in 2009show that the performance of this is very poor as

compared to last year.

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Common SizeCommon Size Statement of Financial Performance:Statement of Financial Performance:


Common Size of Financial Performance

As at 2009, 2008 & 2007

Particulars 2009

%

2008

%

2007

%

Income 100.00 100.00 100.00

Expenditure

Administrative Expenses 119.91 92.62 87.46

Surplus / (Deficit) for the year (19.91) 7.38 12.54

Capital Fund b/f 220.22 206.44 188.41

Total 200.30 213.82 200.95

Donations - - 5.88

Prior Period Adjustment (0.19) - 8.03

Capital Fund c/f 200.11 213.82 214.85

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Interpretation Statement of Financial Performance:Interpretation Statement of Financial Performance:

The Vertical Analysis of the statement of finical performance of 2009, 2008 is

poor as compared to the figures of 2007. The administrative expense of GCCI is

significantly increase as compared to the year 2007 in 2009 & goes to 119.91% increase

from 87.46%. The total capital fund of GCCI is also decrease by 200.11% which is

213.82% in the last year & 214.85 in 2007. This is not a good sign the funds of the GCCI

is reduced, this can create a greater trouble for GCCI, if these are not increase in the next

year.

Ratio Analysis:Ratio Analysis:

Financial Ratios are like financial temperatures, which give the state of the health of

a business. This analysis technique is most widely used. It is the only mean of better

understanding of Financial Strength & Weakness. It can be divided in different

Categories like;

Liquidity Ratios

Activity Ratios

Debt Ratios

Profitability Ratios

Market Value Ratio

Liquidity Ratios:Liquidity Ratios:

Liquidity Ratios are used to measure a firm’s ability to meet short-term

obligations. They compare short-term obligations to short-term (or current) resources

available to meet these obligations. From these ratios, much insight can be obtained into

the present cash solvency of the firm and the firm’s ability to remain solvent in the event

of adversity.

Under this, I calculate following Ratios of Gujranwala Chamber of Commerce &

Industry;

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Current Ratio:

Current Ratio = Current Assets / Current Liabilities

For 2009 Current Ratio = 10,313,122.39 / 321,770.00 = 32.05

For 2008 Current Ratio = 16,211,416.43 / 216,424.00 = 74.91

For 2007Current Ratio = 15,244,888.10 / 261,228.00 = 58.36

Interpretation:

The rule of thumb is 2:1, as in 2009 company has Rs/32.05 to pay its Rs.1

liability however the company has Rs/74.91 & Rs/58.36 in 2008 & 2007. As it is reduce

as compared to previous years, it is unfavorable for GCCI.

Absolute Quick Ratio:

Absolute Quick Ratio = Absolute Liquid Assets / Current Liabilities

Absolute Liquid Assets = Cash & Bank Balances

For 2009 Absolute Quick Ratio = 9,685,505.10 / 321,770.00 = 11.71

For 2008 Absolute Quick Ratio = 10,195,760.82 / 216,424.00 =47.11

For 2007 Absolute Quick Ratio = 3,767,717.39 / 261,228.00 = 37.08

Interpretation:

The Absolute Quick Ratio of GCCI is 11.71 in 2009 which is significantly

decreased from the previous years, as in previous it is 47.11 & 37.08 in 2008 & 2007

respectively. It is also unfavorable of GCCI.

Activity Ratios:Activity Ratios:

Activity ratios are calculated to measure the efficiency with which the resources

of the firm have been employed. These ratios are also called “TUROVER RATIOS”

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because these ratios indicate the speed with which assets are being turned over into sales.

Following ratios are calculated under this head of GCCI;

Debtor Turnover

Average Collection Period

Total Assets Turnover

Non Current Assets Turnover

Current Assets Turnover

Debtor Turnover:

Debtor Turnover = Sales or Income / Average Receivables

For 2009 Debtor Turnover Ratio = 10,311,977.68 / 1,771,603.00 = 5.82 times

For 2008Debtor Turnover Ratio = 10,620,421.88 /1,965,275.00 =5.40 times

For 2007 Debtor Turnover Ratio = 10,204,376.00 / 1,915,978.39 = 5.33 times

Interpretation:

The Debtor Turnover Ratio of GCCI is increased in 2009 which is 5.82 times as

compared to previous years, which are 5.40 times & 5.33 times in the 2008 &2007

respectively.

Average collection period:

Average collection period = No. of days in Year / Debtor Turnover

For 2009 Average collection period = 360 / 5.82 = 62 days

For 2008 Average collection period = 360 / 5.40 =67 days

For 2007 Average collection period = 360 / 5.33 = 68 days

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Interpretation:

The average collection period shows after how many days the company accounts

receivables convert into cash. The current results shows that company has improved as in

current year average collection period is 62 days which are less then previous years

figures of 67 days in 2008 & 68 days in 2007.

Total asset turnover:

Total asset turnover = sales / total assets

For 2009 Total Assets Turnover Ratio = 10,311,977.68 / 20,956,963.62 = 0.49 times

For 2008 Total Assets Turnover Ratio = 10,620,421.88 /22,925,068.63 =0.46 times

For 2007 Total Assets Ratio = 10,204,376.00 / 22,185,633.32 = 0.46 times

Interpretation:

In 2009 the company has a healthy turnover of assets into sales, show the

management efficiency to convert its total assets into sales. In 2009 it is 0.49 times as

compared to 0.46 times of both 2008 & 2007.

Non Current asset turnover:

Non Current asset turnover = sales / non current assets

2009 Non Current asset Turnover Ratio = 10,311,977.68 / 10,643,841.23 = 0.97 times

2008 Non Current asset Turnover Ratio = 10,620,421.88 / 6,713,652.20 =1.58 times

2007 Non Current asset Turnover Ratio = 10,204,376.00 / 6,940,745.22 = 1.47times

Interpretation:

In 2009 the company has non current assets turnover of 0.97 times which as

lower than previous years of 2008 1.58 times & in 2007 1.47 times. This shows GCCI

has not efficiently utilized its non current assets in 2009.

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Current Asset turnover = sales / current assets

For 2009 Current Turnover Ratio = 10,311,977.68 / 10,313,122.39 = 1.00 times

For 2008 Current r Turnover Ratio = 10,620,421.88 /16,211,416.43 = 0.66 times

For 2007 Current Turnover Ratio = 10,204,376.00 / 15,244,888.10 = 0.67 times

Interpretation:

In 2009 the company has current assets turnover of 1.00 times which as greater

than previous years of 2008 0.66 times & in 2007 0.67 times. This shows GCCI has

efficiently utilized its current assets in 2009.

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SWOT AnalysisSWOT Analysis

The Strengths -Weaknesses Opportunities-Threats (SWOT) analysis

is also named as The Threats-Opportunities-Weaknesses-Strengths (TOWS)

analysis. A SWOT Analysis is a strategic planning tool used to assess the Threats,

Opportunities and Strengths, Weaknesses, involved in a business venture or in any other

situation requiring a decision. The most difficult part of SWOT Analysis is to match

internal and external factor. Once the objective has been identified, SWOT are

discovered and listed. SWOT analysis is defined precisely as follows:

Strengths & Weaknesses are linked with internal environment. Opportunities &

Threats are linked with internal environment.

Strengths and weaknesses are internal factors. The strength could

be your specialist marketing expertise. A weakness could be the lack of a new product in

the market.

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SWOT

Internal Environment

Strengths

External Environment

Opportunities and threats are external factors. An opportunity could

be a developing distribution channel such as the Internet, or changing consumer lifestyles

that potentially increase demand for a company's products.

A threat could be a new competitor in an important existing market or a technological

change that makes existing products potentially obsolete.

It is significant of pointing out that SWOT analysis can be very subjective - two

people rarely come-up with the same description of a SWOT analysis even when given

the same information about the same business and its environment.

Being an internee at GCCI, I have observed the following Strengths, Weaknesses,

Opportunities, & Threats:

Strengths:Strengths:

These are attributes of the organization that are unique & are helpful to attain

the objective of the organization. Following are the elements;

GCCI Support & Promote Trade Activities:

Gujranwala Chamber of Commerce and Industry is efficiently or effectively

support, promote the trade & industry activities of Gujranwala District. GCCI can take

all the steps which are necessary for the promotion of trade, commerce & industry

through Seminars or exhibitions in the GCCI.

Top Management Commitment:

GCCI’s top management is the Executive Committee, who is the combination of both

experienced & young energetic professional which are proving to be the real strength of

GCCI. This top management also includes the Director General. The main motive of all

the members of Executive Committee & Direct General is towards the support & full

commitment of all the trading activities in Gujranwala.

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Effective Communication at GCCI:

Gujranwala Chamber of Commerce and Industry has very good relation among

different departments, coworkers, colleagues and subordinates. This good relationship

can leads towards the effective communication between different departments,

coworkers, colleagues & subordinates.

Infrastructure of GCCI:

The infrastructure of the GCCI is very attractive, which creates a good image in the

mind of visitors or outsiders. The infrastructure of GCCI has improved very much over

the years & still all the President can spend many funds every year to improve it further.

Sign of Quality:

GCCI has implemented ISO 9000 standard, which is a sign of Quality at very level of

organization & clarity in its internal processes. This creates a great image as ISO

certified Company has a great influence on the outsiders or foreign countries. That’s way

GCCI has a strong trade and industry monitoring and controlling position in the market.

Maintenance of Vital Statistical Records:

Gujranwala Chamber of Commerce and Industry has a Library which has

maintained vital statistics records & this library is the main requirement in for every

Chamber. The different department of GCCI like Membership Department has also

maintained statistical records for long term in order to avoid any ineffective operations.

Weaknesses:Weaknesses:

These are attributes of the organization that are harmful to the achievement of its

objective. Following are some points which I have observed under this head;

Non Segregation of Duties:

In the Accounts department of GCCI which is a very crucial department. Only one

person an Accountant is done both jobs of “Cashier & Accountant”, this is very harmful

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for a business that a single person can issue cash & also record that cash, so he can

record anything as there is no supervision or control over Accountant.

Planning of different Events of GCCI beyond its Control:

All the plans and their implementation made through Ministry of Commerce &

Federation of Chambers. The GCCI has a member is bound to follow all of their

requirements. Although these plans in his favor or not, the implementation of those is

compulsory on GCCI.

GCCI has not required Staff:

The GCCI has also facing Staff problems, in R & D cell only Director General of R

& D cell is work for this cell. He required a handsome staff in order to conduct research

projects, make making fortnightly bulletin in order to give proper guide & support to the

members of GCCI.

Opportunities:Opportunities:

These are external conditions or factors that are helpful to the achievement of its

objectives. Following are the Opportunities for GCCI;

Introduce new Departments:

GCCI has enough capacity or space as it own the whole Chamber Plaza, they

have just four departments, GCCI has a bigger opportunity to introduce or add or expand

its departments, like any one or two departments in to promote & effectively discharge

its services ,

1. Community Development and Communication

2. International Relation

3. Finance and Business Strategies

4. Industrial Development

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5. Chamber Logistic Center

6. Health & Medical Science

7. Chamber Science and Technology Center

8. Islamic Medicine

9. Economic Development

10. Inter Industry Relations

11. Joint Ventures and Foreign Investment

12. Education and Training

13. Governmental Affairs

No Competitor:

Gujranwala Chamber of Commerce & Industry has greatest opportunity to

expand its operations as it has no Competitors in Gujranwala. It is the only company to

support the trade & business activities in Gujranwala. So, if the management of the

company can go towards its operations.

Innovations through Utilization of R & D Cell:

Gujranwala Chamber of Commerce & Industry create many facilities through

Research & Development & try to produce more innovative ideas or alternative of rare

or scarce resources in order to satisfy the existing members & also try to crate

opportunities in Gujranwala that more & more people can start works or start their

businesses or companies, & so, GCCI can increase its members through this.

Commencement of Mega Project for Infrastructure of District:

Gujranwala Chamber of Commerce & Industry has convenience the Government

to start different mega projects for the improvement of infrastructure of Gujranwala, as

in order to create different jobs to overcome the unemployment in the Gujranwala

through the “Capital Fund” of GCCI & Government Grant.

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Threats:Threats:

These are external conditions that are harmful to the achievement of the objective. I

have observed the following threats;

Unstable Economic Conditions:

Gujranwala Chamber of Commerce & Industry has faced many threats from

unstable economic conditions in Pakistan, which is a big hurdle in the promotion of

trade & business activities in Gujranwala. As people are hesitate to invest. The

international trade of imports & exports are highly affected from these uncertain

conditions.

Uncertain Political Conditions:

Gujranwala Chamber of Commerce & Industry has very much effected due to

uncertain political environment in Pakistan, this will also heart the trade & business

activities in Gujranwala as the uncertain economic conditions in Pakistan.

Higher Cost of Capital:

Gujranwala Chamber of Commerce & Industry has threat of reducing its

members due to High Cost of Capital due to the following factors;

Inflation

Electricity crisis

Gas Load Shading

High Prices of Inputs

Many other factors

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This is a big threat for GCCI has lost many of its members every year. If these

costs are not controlled no one can take initiate to start new business is also a threat

for GCCI, as having no more members.

Uncertain Economic Polices & Regulations of Government:

Gujranwala Chamber of Commerce & Industry is also badly affected due to

uncertain economic policies and regulations of government, like involvement of

Political Factors & change in Government can change the policies.

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RecommendationsRecommendations

After conducting the SWOT analysis of GCCI, I am in a position to recommend the

factors, which are those if GCCI management can properly apply these factors, the

weakness & threats are converted into strengths & opportunities:

Segregation of Duties:

I recommend to GCCI management to segregate duties & only one person can do one

job & he has a superior or supervisor to inspect his work. In GCCI the accountant is not

fit for accountant as well as cashier. There should be separate person for each post in

order to prevent from frauds.

Hire the Required Staff:

I recommend to GCCI management the competent staff for R & D cell. If GCCI,

wants to promote the industry research work they have to hire the required staff. It is not

possible that only a single person Director General of R &D can handle or conduct the

work of research of different industries in Gujranwala. This job or work required a

handsome amount of employees who gather the data of different industries, identifying

the problems & try to solve those problems of the different industries through research.

GCCI Introduce New Departments:

I recommend to GCCI management to properly utilize his capacity by adding or

introducing new departments in order to promote the trade & industry from the capital

fund of GCCI. They have enough space; it should be very beneficial for the members of

GCCI, if GCCI can introduce new departments which are present in other districts or

cities of Pakistan.

New Industrial Zone:

I recommend to the GCCI management to connivance or approve a scheme of

new industrial zone to Ministry of Commerce, to provide facilities to start the new

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business. This scheme can promote the industry of Gujranwala, & provide many job

opportunities to the graduates of the Gujranwala.

ConclusionConclusion

At the end, I conclude that the Gujranwala Chamber of Commerce & Industry is

engaged in the promotion of trade & industry is a good organization. During my

internship at GCCI, I have observed that, the company has providing facilities of

membership about 7000 business either sole proprietor, partnership or company or body

corporate. It provide numerous benefits to its members, but now it has faced many

challenges in the industrial sector due to energy crisis, political & other challenges which

become the grater hurdle in the way to promote the industries smoothly.

During internship I did the research work in R & D cell & make the Country

profile of five countries, I have highlight the economic conditions & trade or top ten

import &export from these countries in Pakistan. In R & D cell I have also assist the

Director General of R & D in making the news bulletin of GCCI. I have also spent some

time in other departments of GCCI gain the practical experience of those departments.

During work in membership department, membership officer has given me the

Memorandum of Analysis & Articles of Associations, through these documents; I have

understood all the working & their procedures.

I have learned a lot of practical experience during the internship. In this

report after the SWOT analysis of GCCI, I have recommended some factors; if GCCI

can implements those factors the weakness or threats of GCCI are converted into

Strengths or Opportunities.

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BibilographyBibilography

Gitman, J., 2009. Principles of Managerial Finance. 10th ed. Chennai: Pearson Education,

Inc. pp 42-73

David,- R., 2008.Strategic Management. 11th ed. Chennai: Pearson Education, Inc. pp

122-146

GCCI, no date. Contact Us. [Online] Available at:

< http://www.gcci.org.pk/>

[Accessed 10 August 2010, 8:10 A.M]

Highlandschamber, no date. Vision & Mission Statements. [Online] Available at:

< http://www.highlandschamber.org/mission/>

[Accessed 03 August 2010, 09:10P.M]

Lagoschamber, no date. Profile of the Logas Chamber of Commerce & Industry.

[Online] Available at:

< http://www.lagoschamber.com/mission.php>

[Accessed 15August 2010, 10:10 A.M]

LCCI, no date. Profile of chamber. [Online] Available at:

< http://www.lcci.org.pk/>

[Accessed 01 August 2010, 05:10P.M]

The Gujranwala Chamber of Commerce & Industry, 2008. annual report 2007-2008,

Gujranwala: AJM Printers

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The Gujranwala Chamber of Commerce & Industry, 2009., annual report 2008-2009,

Gujranwala: AJM Printers

GlossaryGlossary

B

Bye-Laws:

A rule made by a company to control the actions of its members.

C

Co-Option:

The freedom or right to choose

Counterfoils:

The part of a piece that is kept as a record by person issuing it.

D

Delegation:

The action or, Process of Delegating.

Dignitaries:

A person holding highly rank or office

Directories:

The persons incharge of an organization.

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E

Electoral:

Relating to election

F

Facsimile:

An exact copy especially written

R

Repugnant:

Incompatible with

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AnnexureAnnexure

I have attached the Following Document of GCCI;I have attached the Following Document of GCCI;

Certificate of Origin

Membership Application Form

Application Form For Visa Recommendations

Application for Chamber’s Membership ID Card

Application for Renewal of Membership ID Card

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internship report on gujranwala chamber of commerce & industry

Documents