INTERNSHIP REPORT ON

NUNDHYAR ENGINEERING & CONSTRUCTION

BATTAGRAM

Submitted by
Amir Hamza

Roll #F-2016-100

Supervised by
Muhammad Tahir Khan

Government College of Management Sciences

Abbottabad

SESSION
2016-2020

INTERNSHIP REPORT ON
i
 NUNDHYAR ENGINEERING & CONSTRUCTION
BATTAGRAM

Submitted by
Amir Hamza

Roll #F-2016-100

Supervised by
Muhammad Tahir Khan

This internship report is submitted in partial fulfillment of the

requirements of Bachelor of Commerce awarded by the
Abbottabad University of Science & Technology,

Government College of Management Sciences Abbottabad

SESSION
2016-2020

Government College of Management Sciences

Abbottabad

ii
 APPROVAL SHEET

Approval Committee
1. External Examiner

Mr.______________________ Signature______________________

2. Supervisor

Muhammad Tahir Khan Signature______________________

Designation Associate Professor GCMS Abbottabad

3. Head of department

Prof. Syed Arif Zahid___________ Signature_____________________

Designation Principal GCMS Abbottabad

iii
 DEDICATION

I Dedicate This Report To My Parents

My Siblings

&

My Respected Teachers

iv
 ABSTRACT

All praises and thanks to Almighty ALLAH. The lord and creator of this universe by shoes
power and glory all goods and things are accomplished. He is also the most merciful, who
gave me the ability and opportunity to work on this report. It is an academic requirement for
the student of BBA HONS to undergo an internship program of Eight weeks duration. This
opportunity provides to the students to apply theoretical knowledge and gain practical
experience about the organization. The purpose of internship report is to evaluate the
performance of organization and give concrete recommendation for further improvements.
Another aspect of this internship is that it makes of a student imaginative and be dynamic and
takes him away from bookish and impractical philosophy. So it makes the student a practical
man and helps him to face difficulties of practical life and the solution of problems. Through
internship a student can judge his qualities and expertise, which he gained from books.

v
 TABLE OF CONTENTS

Executive Summary...................................................................................................................x
Chapter 01..................................................................................................................................1
Introduction to report.................................................................................................................1
1.1 Objective of the Study......................................................................................................1
1.2 Scope of the Study...........................................................................................................1
1.4 Methodology of the Study................................................................................................2
1.5 Limitation of Study..........................................................................................................2
1.6 SCHEME of the Report...................................................................................................2
Chapter 02..................................................................................................................................4
Introduction to the Organization................................................................................................4
2.1 Company Overview.........................................................................................................4
2.2 SERVICES.......................................................................................................................5
2.2 FIELDS OF SPECIALISATION.....................................................................................5
2.3 Organizational Chart........................................................................................................6
2.4 List of Staff......................................................................................................................7
2.4.1 Other Staff.................................................................................................................8
2.5 List of Machinery & Equipments.....................................................................................9
2.6 Completed Project..........................................................................................................10
2.6.1 Building Works.......................................................................................................10
2.6.2 Water Supply Schemes............................................................................................11
2.6.3 List of Works in Hand.............................................................................................12
2.7 STRUCTURAL DIMENSIONS OF ORGANIZATION..............................................13
2.8 ORGANIZATIONAL GOALS, STRATEGIES AND EFFECTIVENESS..................16
2.10 ORGANIZATIONAL SIZE, LIFE CYCLE AND CONTROL............................25
Chapter 03................................................................................................................................27
Financial Analysis....................................................................................................................27
3.1 Introduction....................................................................................................................27
3.2 Balance Sheet.................................................................................................................27
3.3 Income statement............................................................................................................29
3.4 Horizontal Analysis of Balance Sheet............................................................................30
3.4.1 Interpretation...........................................................................................................32
3.5 Vertical Analysis of Balance Sheet................................................................................34
3.5.1 Interpretation...........................................................................................................35
SWOT Analysis.......................................................................................................................48

vi
 4.1 strengths.........................................................................................................................48
4.2 weaknesses.....................................................................................................................49
4.3 opportunities...................................................................................................................50
4.4 Construction company threats........................................................................................50
Chapter 5..................................................................................................................................52
Conclusion and Recommendations..........................................................................................52
5.1Conclusion.......................................................................................................................52
5.2 Recommendations..........................................................................................................53
References................................................................................................................................54

vii
 ACKNOWLEDGEMENT

Lots of thanks to Almighty Allah (The most merciful the most beneficial).The only creator of
universe who enabled me to complete this report, in spite of various difficulties. All respects
to the Holy Prophet (P.B.U.H) who enable us to recognize our greater and whose spiritual
teaching guide us every matter of life.
I would like to acknowledge my debts to those officers of Nundhyar Engineering &
Construction Battagram, Limited who have been extremely helpful to me.
First of staff of Nundhyar Engineering & Construction Battagram, he has been a permanent
source of encouragement and guidance. His helpful nature did not restrict me to the premises
to the branch but extended to any place and any matter I needed his support on.
I would also acknowledge my debt to my supervisor Muhammad Tahir Khan for his
continuous guidance.
Moreover, I would also acknowledge my debt to my family for their helpful hand.
In short, I would always be thankful to all my managers and officers, for their courteous and
compassionate treatment to me.

viii
 List of Abbreviations

ADBP Agricultural Development Bank of Pakistan

ATM Auto Teller Machine
APD Assets Product Division
AIGP American International Group Pakistan
BTF Balance Transferred Facility
ETD Electronic Technology Department
FC Foreign Currency
FDD Foreign Demand Draft
FS Financial Statement
IDBP Industrial Development Bank of Pakistan
IT Information Technology
IPD Investment Product Division
L/C Letter of Credit
L/G Letter of Guarantee
MNCs Multi-National Companies
MIS Management Information System
MT Mail Transfer
NIT National Investment Trust
NDFC National Development Finance Corporation
PLS Profit & Loss Sharing
RTCs Rupee Travelers Cheques
SBP State Bank of Pakistan
SBU Strategic business unit

EXECUTIVE SUMMARY

(Nundhyar Engineering & Construction Battagram) is Pakistan’s premier

engineering consultancy organization. Its international status is well established and it enjoys

the reputation of being one of the top engineering consultancy organizations in Asia and

Africa and is ranked amongst the world’s top 200 consulting firms.

ix
There has never been a dearth of competent engineers in Pakistan but, unfortunately, over the

years major development projects in Pakistan were handed out to foreign consultant at the

cost of self confidence of Pakistani engineers and other professionals. Belatedly, when the

Indus Basin project were nearing completion, the highest authority in Pakistan realized that

the Pakistani engineers must be given practical exposure and responsibility in this gigantic

national development programme. It was realized that any delay in taking initiative in this

respect will be disastrous for the future of the engineering profession in Pakistan. It was

under these considerations that Nundhyar Engineering & Construction Battagram was

created in 1973 as a Private Limited Company. The objective of its creation was to create a

pool of talented engineers, attain self-reliance in engineering consultancy and replace foreign

consultants. The company has achieved these objectives to a large extent.

The report is divided into five chapters as under:

Chapter 1: Includes Objective, purpose, scope, limitations, methodology, and scheme of the

report.

Chapter 2: Includes background and history of banking in Pakistan, background of

Nundhyar Engineering & Construction Battagram, roles, functions and branches.

Chapter 3: Includes Financial Analysis

Chapter 4:

Chapter 5: Includes recommendations of the study based on the analysis in the previous

chapter.

x
 CHAPTER 01
INTRODUCTION TO REPORT

1.1 OBJECTIVE OF THE STUDY

For getting the Bachelors degree in Business Administration, each student

is required to spend eight weeks as an internee in a recognized
organization. The students are required to work in their specialized fields.
As I was a Internee for 8 weeks at Nundhyar Engineering & Construction
Battagram .So I had to write an internship report on Nundhyar
Engineering & Construction Battagram.

The main purpose of this program is to make students familiar with the
practical work, as there is great difference between the theory they have
learnt during their BBA HONS (Finance), and how the job is practically
done.

Another important aspect of the internship program is that the internee is

placed in most of the departments of the organization through job
rotation. It provides them with a glance of each department, as the
working period is too short for learning in detail.

1.2 SCOPE OF THE STUDY

1) It is a compulsory requirement for the award of a Bachelors

Degree in Business Administration.

2) It will help present and prospective students of the department in

making assignments and writing reports on the organization.

3) It can also provide help to the organizations management in

identifying their Strengths, Weaknesses, Opportunities and
Threats.

1
4) It can also provide assistance to students seeking financial data for
analysis.

1.4 METHODOLOGY OF THE STUDY

The methodology that is adopted for this research project is based on both
the primary as well as secondary data. The sources of primary data were:

The sources of secondary data were;

1. Annual reports

2. Over view of the Nundhyar Engineering & Construction

3. statistical report

During the project, it was observed that enough written material regarding
the Bank is not available, so it had to count on the personal observation
and interviews with operational manager assist manager and other
employees.

A lot of time was spent in the branch at each department and the
information was collected from discussions and interviews with Managers
Officers, so most of the data of this report is primary source.

1.5 LIMITATION OF STUDY

The span of operation is too large to be covered completely in short time.

Which does not permit to fully analyze and understand the function, and
the privacy policy of the Organization also limits access to the
organizational data and information that is termed as confidential.

1.6 SCHEME OF THE REPORT

The report is divided into five chapters as under:

Chapter 1: Includes Objective, purpose, scope, limitations, methodology,
and scheme of the report.

2
Chapter 2: Includes background and history of banking in Pakistan,
background of Nundhyar Engineering & Construction Battagram, roles,
functions and branches.
Chapter 3: Includes Financial Analysis
Chapter 4:
Chapter 5: Includes recommendations of the study based on the analysis
in the previous chapter.

3
 CHAPTER 02
INTRODUCTION TO THE ORGANIZATION

2.1 COMPANY OVERVIEW

National Engineering Services Pakistan (Pvt) limited (Nundhyar

Engineering & Construction Battagram) is Pakistan’s premier

consultancy organization. Its international status is well established and it

enjoys the reputation of being one of the top engineering consultancy

organizations in Asia and Africa and is ranked amongst the world’s top

200 consulting firms.

There has never been a dearth of competent engineers in Pakistan but,

unfortunately, over the years major development projects in Pakistan were

handed out to foreign consultant at the cost of self confidence of Pakistani

engineers and other professionals. Belatedly, when the Indus Basin

project were nearing completion, the highest authority in Pakistan realized

that the Pakistani engineers must be given practical exposure and

responsibility in this gigantic national development programme. It was

realized that any delay in taking initiative in this respect will be disastrous

for the future of the engineering profession in Pakistan. It was under these

considerations that Nundhyar Engineering & Construction Battagram

was created in 1973 as a Private Limited Company. The objective of its

creation was to create a pool of talented engineers, attain self-reliance in

engineering consultancy and replace foreign consultants. The company

has achieved these objectives to a large extent. Nundhyar Engineering

4
& Construction Battagram is registered with a number of international

funding agencies such as IBRD, ADB, IDB, etc. Todate Nundhyar

Engineering & Construction Battagram has undertaken 228 projects.

The cumulative cost of the projects undertaken by the Nundhyar

Engineering & Construction Battagram is US$104.5 billion. The

company has earned Rs.1778 million from its domestic operations up to

December 2018.

The company’s success lies in the hard work of its highly skilled

employees and commitment to quality in every fact of its operation. It was

this commitment that led it to become the first engineering consultancy

organization in Pakistan to obtain ISO 9001 QMS certificate in 1998.

2.2 SERVICES

Nundhyar Engineering & Construction Battagram offers a

board spectrum of expert consultancy services ranging from conception to

completion and operation of development projects. The scope of these

services covers prefeasibility studies, surveying and mapping,

investigations, design, tender and contract documentation,

construction/installation supervision, contract management and post-

construction services.

2.2 FIELDS OF SPECIALISATION

Nundhyar Engineering & Construction Battagram, having

expertise in almost all engineering disciplines, specializes in the field of

5
power and mechanical; water and agriculture; architecture and planning;

highways, bridges, airports and seaports; environmental and public health

engineering; engineering for industry; heating, ventilation and air-

conditioning; information technology and geographical information

system(GIS).

2.3 ORGANIZATIONAL CHART

l
n
a
P
F
r
o
m
S
e
p
u
e
t
i
j
c
ti
n
l
a
o
r
P
S
u
Q
b
L n
r
v
t
y
n
r
y
i
g
e
v
M
u
S
E
h
c
T
A
s
ar
t s
e
n
c
t
i
a
r
o
s
i
n
i
a
g

6
 2.4 LIST OF STAFF

Management
S.No Name Designation Qualification
1 Amanullah Khan Chief Executive B.A
2 Sheraz Khan Managing Director MBA (HR), DAE (Civil)
3 Hamza Khan Project Manager BS (Civil)

Technical Staff
S.No Name Designation Qualification
1 Engr. Zain-Ul-Abddin Site Engineer B.E (Civil)
2 Engr. Meher Ali Baloch Site Engineer B.E (Electrical)
3 Engr. Usman Sarwar Site Engineer B.S (Electronics)
4 Engr. Husnain Zafar Site Engineer B.Sc (Comp)
5 Naveed Anjum Surveyor DAE (Civil)
6 Umair Asif Surveyor DAE (Civil)
7 Jehan Zeb Supervisor DAE (Civil)
8 Zeeshan Rauf Supervisor DAE (Civil)
9 Waqas Altaf Supervisor DAE (Civil)
10 Shamraiz Gul Supervisor DAE (Civil)
11 Ilyas Mughal Supervisor DAE (Civil)
12 Saad Sultan Electrician DAE (Electrical)
13 Muhammad Javed Mechanic DAE (Mechanical)
14 Ashraf Jan Mechanic DAE (Mechanical)

Admin Staff
S.No Name Designation Qualification
1 Faisal Rafique Awan Admin Officer M.A (I.R)
2 Raja Junaid Javed Accountant BBA Hons (Finance)
3 Malik Saad Sajid Assistant Accountant D.Com
4 Mushtaq Ahmed Khan Clerk D.Com
5 Sardar Arshad Material Checker B.A
6 Muhammad Arfeen Security Incharge F.A (Sobedaar Rtd)

7
2.4.1 OTHER STAFF

 Foremen

 Helpers

 Store Keepers

 Operators

 Drivers

 Watchmen

 Office Boys

 Daily Wages Labor

NOTE:

Other Staff increases & decreases on need basis.

8
2.5 LIST OF MACHINERY & EQUIPMENTS

S.No Description Quantity

1 Bulldozer 03 NO
2 Wheel dozer 04 NO
3 Excavator 04 NO
4 Dump Truck 06 NO
5 Pay loader 05 NO
6 Concrete Mixer 1 Bag 04 NO
7 Concrete Mixer 1/2 Bag 06 No
8 Jeep 01 NO
9 Pickup 02 NO
10 Tractors 04 NO
11 Water Tank 02 NO
12 Water Motor Pumps 06 NO
13 Shuttering steel plates 900 SFT
14 Scaffolding Pipes 15000 RFT
15 Generator 04 NO
16 Plate Compactor 05 NO
17 Concrete Vibrator 04 NO
18 Hoist 01 NO
19 Level instrument 02 NO
20 Distomate (Total Station) 01 NO
21 Thedolite 02 NO
22 Crusher Plant 02 NO

9
2.6 COMPLETED PROJECT

2.6.1 BUILDING WORKS

S.No Name of Work ADP Estimated Cost

(Millions)
1 GGHS Bakot Abbottabad 2013-14 22.7
2 GGMS Panjgran Jhangra 2013-14 17.66
Abbottabad
3 RHC at Mastuj Chitral 2012-13 86.78
KPK
4 District Education Office 2012-13 13.12
Abbottabad
5 GGHS Tragri Bala 2011-12 17.5
Mansehra
6 Constriction of GPS GHS
GMS internal water supply
developing work sanitary
approach road boundary 2011-2014 195.65 Million
wall open well external
water supply Dhodial
Mansehra
7 GGPS Tumbah Mansehra 2010-11 10.15

10
2.6.2 WATER SUPPLY SCHEMES

S.No Name of Work ADP Estimated Cost

(Millions)
1 WSS Muradpur I 2013-14 9.7
Mansehra
2 WSS Muradpur II 2013-14 15.95
Mansehra
3 Installation of water meter 2012-13 15.7
Nawasher Abbottabad
4 WSS Brader Jokan 2012-13 10.1
Mansehra

11
2.6.3 LIST OF WORKS IN HAND
s.No Work Name ADP Estimated Cost
(Million)
1 WSS Banochar U/C 2018-2018 20.6
Ghamber
2 GPS Sergah U/C Sarbanna 2018-2018 15.69
Abbottabad
3 GGPS Sergah U/C 2018-2018 15.23
Sarbanna Abbottabad
4 GPS Dharmang U/C 2017-2018 17.27
Dhodial Mansehra
5 GPS Longal U/C Pluck 2017-2018 17.17
Abbottabad
6 GGPS Khushikot 2017-2018 16.7
Abbottabad
7 GHS Tarnawai 2017-17 13.43
Abbottabad
8 GPS Khaira Gali Nirgol 2017-2018 15.76
Abbottabad
9 GPS Lower Bakot 2017-2018 15.76
Abbottabad
10 GHS Ghamber 2017-2018 16.05
Abbottabad
11 GHSS Lora Abbottabad 2017-2018 21.52
12 GMS Banian Abbottabad 2017-2018 12.8
13 GPS Namshera 2017-2018 15.53
Abbottabad
14 GGMS Balolia 2015-2017 11.1
Abbottabad

2.7 STRUCTURAL DIMENSIONS OF ORGANIZATION.

I. FORMALIZATION :-

12
 In Nundhyar Engineering & Construction Battagram
Formalization is “High” because policy manuals, job descriptions of
various employees, rules and procedures all are in written format.

II. SPECIALIZATION :-
In Nundhyar Engineering & Construction Battagram
organizational tasks are subdivided into separate
jobs. Therefore specialization in Nundhyar Engineering &
Construction Battagram is “Extensive”.

III. STANDARDIZATION :-
In Nundhyar Engineering & Construction Battagram
employees perform different types of tasks in their daily routine; therefore
uniformity in work is low, so standardization is “Low” in Nundhyar
Engineering & Construction Battagram.

IV. HIERARCHY OF AUTHORITY:-

In Nundhyar Engineering & Construction Battagram the span
of control is “Narrow” in the divisions, therefore Hierarchy of authority
is “Tall”.

V. CENTRALIZATION :-
In Nundhyar Engineering & Construction Battagram decision
making or centralization of power is kept at the top level. The important
decision like establishing goals, hiring employees, choosing contracts are
made at the top level, therefore in Nundhyar Engineering &
Construction Battagram “Centralization is High”.

VI. COMPLEXITY :-

13
 In Nundhyar Engineering & Construction Battagram numbers
of activities are differentiated among the divisions. In Nundhyar
Engineering & Construction Battagram Vertical and Horizontal
complexity is “High”, but Spatial complexity is “Low”.

VII. PROFESSIONALISM :-
In Nundhyar Engineering & Construction Battagram formal
training and education of employees is very high, therefore
professionalism in Nundhyar Engineering & Construction Battagram
is “High”.

VIII. PERSONNEL CONFIGURATION :-

In Nundhyar Engineering & Construction Battagram
deployment of people to various divisions are high, therefore personnel
configuration is “High” in Nundhyar Engineering & Construction
Battagram.
The table of Structural Dimensions In Nundhyar Engineering
& Construction Battagram is given below:

14
 STRUCTURAL DIMENSIONS

FORMALIZATION HIGH

SPECIALIZATION Extensive

STANDARDIZATION Low

Tall
HIERARCHY OF AUTHORITY

CENTRALIZATION OR High or Centralized

CONCENTRATION OF POWER

COMPLEXITY :-
High
I. Vertical Complexity.
High
II. Horizontal complexity.
Low
III. Spatial Complexity.

PROFESSIONALISM. High

High
PERSONNEL CONFIGURATION.

15
2.8 ORGANIZATIONAL GOALS, STRATEGIES AND
EFFECTIVENESS.

GOALS:-
Mission Statement:-
To create a pool of talented engineers, attain self-reliance in
engineering consultancy and replace foreign consultants.
Our Believe:-
The believe of Nundhyar Engineering & Construction
Battagram is the consistent attainment of quality in all facets of
our operations so as to provide consultancy services with
professionalism and to the satisfaction of our clients.
Our Values:-
 Excellence in all we do.
 Ethical and moral conduct at all times and in all our
relationships.
 Innovations in all areas of our Designs as a mean of
attaining and sustaining leadership.
Operative Goals:-
 To increase profit by 15%.
 To retain company’s leading stature in the future by
capturing 75% Market share.
 To hire top quality engineers and allied professionals.
 To capture 80% share of Geographical Information System
(GIS) market.
ORGANIZATIONAL STRATEGIES:-
Porter’s competitive strategies:-
Low-Cost Leadership:-
Nundhyar Engineering & Construction Battagram is using the
“Low Cost Leadership” strategy to increase market share by
emphasizing or low cost compared to competitors. By using “Low
Cost Leadership” strategy, Nundhyar Engineering &

16
 Construction Battagram also emphasize on efficient facilities,
pursues cost reductions and uses tight controls to produce services
more efficiently than its competitors.
Frame work of Porter’s competitive strategies:-
Competitive Advantages.
LOW COST
UNIQUENESS
Competitive Scope

Low-cost Leadership.
DIFFERENTIATION.
Nundhyar Engineering &
Construction Battagram

Focused
Focused Low-Cost
Differentiation.
Leadership.

BROAD

NARROW

Miles and Snow’s Strategy Typology:-

Defender:-
Nundhyar Engineering & Construction Battagram is concerned
primarily with internal efficiency and control to produce reliable, high
quality services for clients. According to Mile’s and Snow’s Strategy
Typology. Nundhyar Engineering & Construction Battagram is using
“Defender” strategy for the achievement of its goals.

EFFECTIVENESS :-
Contingency Effectiveness Approaches:-

17
 Goal Approach:-
In Contingency Effectiveness Approach Nundhyar Engineering
& Construction Battagram uses the “Goal Approach” to
effectiveness, because it identifies the profit, client satisfaction,
efficiency and attainment of certain levels of output.
Balanced Effectiveness Approaches:-
Contingency/Stake holder Approach:-
According to Stake holder Approach important stake holder of
Nundhyar Engineering & Construction Battagram are Clients,
Employees, Creditors, Suppliers, community and Government.
Importance and power of these stake holders are described in the
following framework.

HIGH
Clients and
CREDITORS.
POWER

Governments.

Community and
Employees.
Suppliers.

LOW

LOW HIGH

IMPORTANCE
Competing Values Approach:-
Nundhyar Engineering & Construction Battagram is well
established organization. Its primary goals are efficiency and profit,
therefore open system and human resource models are not major
concerns. Its major concerns are “Rational Goal Model” and “Internal
Process Model” as described below.

18
19
2.9 THE EXTERNAL ENVIRNOMENT.
Environmental Domain:-
Environmental Domain of Nundhyar Engineering &
Construction Battagram is decried into “Task Environment”,
“General Environment”, and “International Control”.
Task Environment:-
Task environment of Nundhyar Engineering & Construction
Battagram consist of following sectors.
(i) Human Resources Sector:-
Nundhyar Engineering & Construction Battagram has
on its rolls some of the best professionals in
various fields of engineering; it has also been able to attract a large
number of Pakistani experts from abroad.
(ii) Market Sector:-
Nundhyar Engineering & Construction Battagram
offers a broad spectrum of expert consultancy services to its clients. These
services range from conception to completion and operation of
development projects.
(iii) Industry Sector:-
Nundhyar Engineering & Construction Battagram has
to compete with the best in the world both technically as well as
financially. Nundhyar Engineering & Construction Battagram faces
competition with many Pakistani and foreign consulting companies. The
main Pakistani competitors of Nundhyar Engineering & Construction
Battagram are ACE & PES.
General Environment:-
General Environment of Nundhyar Engineering & Construction
Battagram consists of following sectors.
(i) Government Sector:-
Nundhyar Engineering & Construction Battagram was
established as a Private Limited Company with a capital of only Rs.0.5

20
million and all the shares held by the Government of Pakistan. Therefore
federal laws and regulation, taxes political process has an impact on its
policies.
(ii) Economic Conditions:-
The economic recession Prevailing in Pakistan for the last
few years has effected the consultancy profession adversely. This has
resulted in fewer development projects in the country. Realizing the
situation, Nundhyar Engineering & Construction Battagram mode
hectic efforts to acquire projects not only in Pakistan but also in foreign
countries.
(iii) Technology Sector:-
Keeping in view the phenomenal growth of IT sector
domestically and large allocation of Government funds in two successive
years, Nundhyar Engineering & Construction Battagram has taken
strategic decision to expand further in this important sector. Nundhyar
Engineering & Construction Battagram’s expertise in the field of
Geographical Information System (GIS) is best in the country.
Nundhyar Engineering & Construction Battagram also has a
“intranet” and Management Information System (MIS) for managerial
decision making.

21
INTERORGANIZATIONAL RELATIONSHIPS:-
Nundhyar Engineering & Construction Battagram has
Interorganizational Relationships with many companies in and outside
Pakistan. These relationships are of different types. Mostly with Pakistani
companies Nundhyar Engineering & Construction Battagram has
“joint ventures” e.g. ACE, Habib Rafiq (Pvt) Limited, Mirza
Associates etc. and with foreign companies Nundhyar Engineering &
Construction Battagram has “collaborative networks” e.g.
Engineering and Consulting Associates Ltd. (Nigeria), Aab Kheez
Asia Consulting Engineers Ltd. (Iran) etc. the framework for
Interorganizational Relationship is given below.
ORGANIZATION TYPE
Dissimilar Similar
ORGANIZATIONAL RELATIONSHIP

Resource Dependence. Population Ecology.

Nundhyar
Engineering &
Construction Battagram

Collaboration Network. Institutionalism.

Nundhyar
Engineering &
Competitive
Construction Battagram

22
Cooperative

23
Service Technology:-
Nundhyar Engineering & Construction Battagram is a
consultancy Engineering company. There fore Nundhyar Engineering &
Construction Battagram accomplish its primary purpose through the
production and provision of “Services”. So NEASPAK uses “Service
Technology”. As Nundhyar Engineering & Construction Battagram
is an Engineering company, therefore it uses “Computer-aided design
(CAD)” for drafting, design and engineering of mew parts.

Departmental Technology:-
In Nundhyar Engineering & Construction Battagram, task
variety and Analyzability is high, therefore it uses the Engineering
Departmental Technology. The Perrow’s Framework of Departmental
Departmental Design:-
Nundhyar Engineering & Construction Battagram has
Engineering Departmental Technology; therefore it has following
characteristics of Departmental Design:
1) Nundhyar Engineering & Construction Battagram has “Mostly
mechanistic Structure”.
2) Formalization is Moderate.
3) Centralization is moderate.
4) Formal training and education.
5) Span of control is Moderate.
6) Communication is written and verbal.

INFORMATION TECHNOLOGY:-
Use of Information Technology is very common in every
department of Nundhyar Engineering & Construction Battagram.
Nundhyar Engineering & Construction Battagram has a private
company wide information system, which is called “Intranet”.
Nundhyar Engineering & Construction Battagram also has its
own”Management Information System (MIS)”. Nundhyar

24
Engineering & Construction Battagram, keeping in pace with latest
technological developments, has a state-of-the art “Geographical
Information System (GIS)” section , equipped with latest GIS hardware,
software and trained professionals.

Interdependence Among Departments:-

Pooled Interdependence:-
Nundhyar Engineering & Construction Battagram has pooled
interdependence among its divisions. According to Thompson pooled
interdependence would exist in firms with “Mediating Technology”.
Thompson’s classification of interdependence and management
implication is given below:

25
Form of Demands on Types of Priority
Interdependence Horizontal Coordination for
Communication, Required. locating
Decision units
Making. close
together.

Pooled. Low Standardization, rules, Low

(Nundhyar communication. procedures.
Engineering & Divisional structure.
Construction
Battagram)

Sequential. Medium Plans, schedules,

communication. feedback. Medium.
Task forces.

Reciprocal. High Mutual adjustments, High.

communication. team work, cross-
departmental meetings.
Horizontal structure.

26
2.10 ORGANIZATIONAL SIZE, LIFE CYCLE AND CONTROL.

Organizational Life Cycle:-

According to the Organizational Lie Cycle Nundhyar
Engineering & Construction Battagram is in the
“Elaboration Stage”, because it is large, mature organization
and there is need for “Revitalization” in Nundhyar
Engineering & Construction Battagram. Organizational Life
Cycle is explained below:

Development of teamwork
Large

Construction Battagram
Nundhyar Engineering &
Addition of internal system
SIZE

Position of clear direction

Crisis:
Need for
revitalization

Creativity
Crisis:
Need to
deal with
Crisis: too much
Crisis: Need for red tape
Small Need for delegation
leadership with control

1. 2. 3. 4.
Entrepreneurial Collectivity Formalization
Elaboration
Stage Stage Stage Stage

27
 Organizational Control:-
In Nundhyar Engineering & Construction Battagram use of
rules, policies, hierarchy of authority, written documentation is
high; therefore Nundhyar Engineering & Construction
Battagram implements the “Bureaucratic Control System”.

Management Control System:-

According to Management Control System, Nundhyar
Engineering & Construction Battagram uses the “Operating
Procedure Control System”.

28
 CHAPTER 03
FINANCIAL ANALYSIS

3.1 INTRODUCTION

Financial analysis is the assessment of profitability stability viability it

explains the organization to have better foresee that how the organization
is performing in the present situation the financial data has been consider
as fundamental tool conclusions an only be drawn having better financial
statement analysis it is necessary for the business to have better
proportion of balance among the different items there are certain things
that are dangerous but could only be sort out through proper analysis
evaluation on strength and weakness are possible through it

 Different stake holders have different interests like

 Creditors in liquidity
 Investor for future Earning
 Government for tax purpose
Budgeting, Planning etc also require this information
3.2 BALANCE SHEET

Balance Sheet
2017 2018
RS 000 RS 000
Equity and Liabilities
Equity
Share Capital and reserves
Share Capital 51,000,000 51,000,000
Revenue reserves
Insurance reserve 2416078 2,621288
General reserve 30500000 27497072
Unappropriated profit 2302282 1894739
35218360 32013099
86218360 83013099

Liabilities

29
Non-Current liabilities
Long term security Deposits 552,122 553049
Deferred income tax 5,754,847 4737260
Employees retirement benefits 32,111,859 24068008
Deferred Government grants 8,926,403 8594920
47,345,231 37953237
Current Liabilities
Trade & Other Payables 46,814183 59142912
Total Equity & Liabilities 180,3777,74 180109248

Assets
Non-Current Assets
Fixed Assets
Propert, Plant & Equipment 94912046 94779483
Intangable Assets 2539060 2332789
97451106 97112272
Long Term investments 7977300 7977300
Long term loans & Advances 2261126 2152757
Investment in Finance Lease 96113 38513
107785645 107280842
Current Assets
Stores, Spares and loose tools 2940425 2742794
Trade Debts 14304039 14227974
Loans & Advances 1593099 676556
Investment in finance Lease 52255 53030
Accured interest 128174 231902
Recoverable from tax Authoroties 18179032 14550698
Recieveable from Government of Pakistan 2164072 2164072
Prepayments and other recievables 4982082 8279236
Short term investments 26038803 24000000
Cash & bank balances 2210148 5902144
72592129 72828406
Total Assets 180,377,774 180109248

3.3 INCOME STATEMENT

For the Year Ended 2018

2017 2018
RS 000 RS 000
Profit for the year 8,759,595 6834534
Other comprehensive loss for the year
Items that will not be reclassified to profit &

30
loss
Remeasurement loss on employees 2,361,452 232181
retirement benefits
Tax Effect of remeasurement loss on 755,665 71976
employees retirement benifits
1,605,787 160205
Items that might be reclassified to profit &
loss:
Gain on available for sale investments arising -
during this year
Gain on disposal transferred to income for 329,039 -
the year
Other comprehensive loss for the year – net 1,934,826 160205
of tax
Total comprehensive income for the year 6,824,769 6994739

3.4 HORIZONTAL ANALYSIS OF BALANCE SHEET

2017 2018 2017%

RS 000 RS 000 Vs 2018
Equity and Liabilities
Equity
Share Capital and reserves
Share Capital 51,000,000 51,000,000 0%
Revenue reserves
Insurance reserve 2416078 2,621288 8.4%
General reserve 30,500,000 27497072 -19%
Unappropriated profit 2302282 1894739 -17%
86218360 83013099 -3.7%

Liabilities
Non-Current liabilities
Long term security Deposits 552,122 553049 0.16%
Deferred income tax 5,754,847 4737260 -17.6
Employees retirement benefits 32,111,859 24068008 -25
Deferred Government grants 8,926,403 8594920 3.7

47,345,231 37953237 -17.8

Current Liabilities

Trade & Other Payables 46,814183 59142912 26

31
Total Equity & Liabilities 180,3777,74 180109248 -0.14

Assets

Non-Current Assets

Fixed Assets

Propert, Plant & Equipment 94912046 94779483 -0.13

Intangable Assets 2539060 2332789 -8.12

97451106 97112272 -0.3

Long Term investments 7977300 7977300 0

Long term loans & Advances 2261126 2152757 -4.7

Investment in Finance Lease 96113 38513 -59

107785645 107280842 -0.4

Current Assets

Stores, Spares and loose tools 2940425 2742794 -6.7

Trade Debts 14304039 14227974 -0.53

Loans & Advances 1593099 676556 -57

Investment in finance Lease 52255 53030 1.4

Accured interest 128174 231902 80.9

Recoverable from tax Authoroties 18179032 14550698 -1

Recieveable from Government of 2164072 2164072 0

Pakistan

Prepayments and other recievables 4982082 8279236 66

32
 Short term investments 26038803 24000000 -7.8

Cash & bank balances 2210148 5902144 167

72592129 72828406 -3

Total Assets 180,377,774 180109248 -0.14

3.4.1 INTERPRETATION

A common problem with horizontal analysis is that the aggregation of

information in the financial statements may have changed over time,
due to ongoing changes in the chart of accounts, so that revenues,
expenses, assets, or liabilities may shift between different accounts
and therefore appear to cause variances when comparing account
balances from one period to the next.

When conducting a horizontal analysis, it is useful to conduct the

analysis for all of the financial statements at the same time, so that
you can see the complete impact of operational results on a
company's financial condition over the review period. For example, in
the two examples below, the income statement analysis shows a
company having an excellent second year, but the related balance
sheet analysis shows that it is having trouble funding growth, given
the decline in cash, increase in accounts payable, and increase in
debt.

The result of horizontal analysis of Nundhyar Engineering & Construction

Battagram’s Balance sheet are described below
On the liabilities side Long term security Deposits increased slightly
0.16% in 2018 ,Deferred income tax decreased -17.6. Employees
retirement benefits also decreased -25 and Deferred Government grants
increased 3.7 in the current year 2018.

33
Insurance reserve increased 8.4%, General reserve decreased -19% and
Unappropriated profit decreased -17% and the total equity decreased
-3.7%.
The assets of the Nundhyar Engineering & Construction Battagram have
been growing very fast since its inception. This growth is the result of the
massive expansion policy the management has been following ever since
the inception of Nundhyar Engineering & Construction Battagram. The
Total Assets decreased by -0.14 %.
Stores, Spares and loose tools-6.7 while Trade Debts decreased by-0.53,
Loans & Advances decreased by-57, Investment in finance Lease
increased by 1.4, Accured interest increased by 80.9 which is a good sign
for Nundhyar Engineering & Construction Battagram, Recoverable from
tax Authoroties decreased -1, Recieveable from Government of Pakistan
is equal for both years i.e 0%
One of the important ingredients of any Organization growth is increase
in most of current assets that is a good sign as it increases their liquidity.

As regards the liability section of the balance sheet chief liability is its
deposits it generates from its customer..As Shown in the Annual reports
of previous years.

Nundhyar Engineering & Construction Battagram Share Capital profits is

same in both 2017-2018 is 0%

34
3.5 VERTICAL ANALYSIS OF BALANCE SHEET

2017 2017% 2018 2018%

RS 000 RS 000

Liabilities
Non-Current liabilities
Long term security Deposits 552,122 1.1 553049 1.4
Deferred income tax 5,754,874 12.7 4737260 12.4
Employees retirement benefits 32,111,859 67.8 24068008 63.7
Deferred Government grants 8,926,403 18.2 8594920 22.5

47345231 100 37953237 100

Assets

Non-Current Assets

Fixed Assets

Propert, Plant & Equipment 94912046 97.4 94779483 97.6

Intangable Assets 2539060 2.6 2332789 2.4

97451106 100 97112272 100

Current Assets

Stores, Spares and loose tools 2940425 4 2742794 3.9

Trade Debts 14304039 19 14227974 19.8

Loans & Advances 1593099 2 676556 0.9

Investment in finance Lease 52255 0.07 53030 0.07

Accured interest 128174 0.1 231902 0.3

Recoverable from tax 18179032 25 14550698 19.9

Authoroties

35
 Recieveable from Government 2164072 2.9 2164072 2.9
of Pakistan

Prepayments and other 4982082 6.8 8279236 11.6

recievables
Short term investments 26038803 35 24000000 32.3

Cash & bank balances 2210148 3 5902144 8.1

Total Assets 180,377,774 100% 180109248 100%

3.5.1 INTERPRETATION
A type of financial analysis involving income statements and balance
sheets. All income statement amounts are divided by the amount of net
sales so that the income statement figures will become percentages of net
sales. All balance sheet amounts are divided by total assets so that the
balance sheet figures will become percentages of total assets.After
analyzing the Balance Sheet, we can see

Long term security Deposits i.e 552,122 were 1.1 in 2017 while in 2018
are 553049 which is 1.4%
Deferred income tax are 5,754,874 in 2017 which is 12.7 % in 2018 it is
4737260 which is 12.4%
Employees retirement benefits amounting 32,111,859 in 2017 show 67.8
change while in 2018 it is 24068008 which is 63.7

Horizontal Analysis of Income Statement

2017 2018 2017 vs 2018
Profit for the year 8759595 6834534 -21
Remeasurement gain 2361452 232181 -90
Retirement benifits 755665 71976 -90

36
 1605787 160205 -90
Gain on disposal 329039 - ---
Other comprehensive income 1934826 160205 -91
Total comprehensive income 6824679 6994739 2.4

INTERPRETATION
The result of horizontal analysis of Nundhyar Engineering & Construction
Battagram’s income statements described below
Other comprehensive income in 2017 is 1934826 and in 2018 is 160205

therefore it decreased -91 %. Due to some wrong policies of the company

This analysis shows that the total comprehensive income increased 2.4%
than the previous year.

One of the important ingredients of any Organization growth is increase

in most of current assets that is a good sign as it increases their liquidity.

Analysts use the income statement for data to calculate financial ratios
such as return on equity (ROE), return on assets (ROA), gross profit,
operating profit, earnings before interest and taxes (EBIT), and earnings
before interest taxes and amortization (EBITDA). The income statement
is often presented in a common-sized format, which provides each line
item on the income statement as a percent of sales. In this
way, analysts can easily see which expenses make up the largest portion
of sales. Analysts also use the income statement to compare year-over-
year (YOY) and quarter-over-quarter (QOQ) performance. The income
statement typically provides two to three years of historical data for
comparison.

The income statement is divided into two parts: operating and non-
operating. The operating portion of the income statement discloses
information about revenues and expenses that are a direct result of regular
business operations. For example, if a business creates sports equipment,
it should make money through the sale and/or production of sports
equipment. The non-operating section discloses revenue and expense

37
information about activities that are not directly tied to a company's
regular operations. Continuing with the same example, if the sports
company sells real estate and investment securities, the gain from the sale
is listed in the non-operating items section.

38
Vertical Analysis of Income Statement

2017 2017% 2018 2018%

Profit for the year 8759595 70 6834534 80
Items reclassified 1605787 15 160205 10
Gain on disposal 329039 5 - -
Other comprehensive 1934826 5 160205 10

income
Total comprehensive income 6824679 100 6994739 100

INTERPRETATION
Vertical analysis is a method of financial statement analysis in which each
entry for each of the three major categories of accounts, or
assets, liabilities and equities, in a balance sheet is represented as a
proportion of the total account. Vertical analysis is also used across other
financial statements as a percentage measure.

The income statement is divided into two parts: operating and non-
operating. The operating portion of the income statement discloses
information about revenues and expenses that are a direct result of regular
business operations. For example, if a business creates sports equipment,
it should make money through the sale and/or production of sports
equipment. The non-operating section discloses revenue and expense
information about activities that are not directly tied to a company's
regular operations. Continuing with the same example, if the sports
company sells real estate and investment securities, the gain from the sale
is listed in the non-operating items section.

An income statement is a financial statement that reports a

company's financial performance over a specific accounting period.
Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and
non-operating activities. It also shows the net profit or loss incurred over a
specific accounting period.

39
After analyzing the Income statement, we can see

That the profit for 2017 is 70% while in 2018 it increased to 80% and the
other comprehensive income in 2017 is 5% in 2018 it increased to 10 %

40
3.6 Ratio Analysis
Ratio simply means one number expressed in terms of another. A ratio is
a statistical yardstick by means of which relationship between two or
various figures can be compared or measured. It is defined as a systematic
use of ration to interpret the financial statements so that the strengths and
weaknesses of a firm, as well as historical performance and current
financial condition, can be determined.

Acid-test ratio 

The acid-test ratio is a strong indicator of whether a firm has

sufficient short-term assets to cover its immediate liabilities.
Commonly known as the quick ratio, this metric is more robust than
the current ratio, also known as the working capital ratio, since it
ignores illiquid assets such as inventory.

The basic formula for the acid-test ratio is: ATR = (Cash + Accounts

Receivable + Short-term Investments) / Current Liabilities. Short-term
investments include marketable securities that can be liquidated
quickly.
Cash + Accounts Receivable + RESULT
YEARS Short-term Investments) /
Current Liabilities.

2017 2164072+ 26038803 + 2210148/ 0.6

46814183
2018 2164072+ 24000000 + 0.54
5902144/59142912=

Interpretation
Acid test ratio is not same for both years 2017-2018 in 2017 it is 0.6%
and 2018 0.54% it decreased

41
3.6.1 Liquidity Ratio
Current ratio
The current ratio is a liquidity and efficiency ratio that measures a firm's
ability to pay off its short-term liabilities with its current assets. The
current ratio is an important measure of liquidity because short-term
liabilities are due within the next year.
This means that a company has a limited amount of time in order to raise
the funds to pay for these liabilities. Current assets like cash, cash
equivalents, and marketable securities can easily be converted into cash in
the short term. This means that companies with larger amounts of current
assets will more easily be able to pay off current liabilities when they
become due without having to sell off long-term, revenue generating
assets.

FORMULA

The current ratio is calculated by dividing current assets by current

liabilities. This ratio is stated in numeric format rather than in decimal
format. Here is the calculation:

Current Ratio
Current Assets 2017= Stores, spares 2940425+Trade
debt14304039+loans and advances1593099+investment52255+accrued
interest12817 4+recoveries18179032 + Receiveable from
Govt.2164072+Prepayment4982082+short term investments 26038803 +
cash & bank Balences2210148= 72592129
Current Libalities 2017= trade and other payables 46814183

Current Assets 2018= Stores, spares 2742794+Trade

debt14227974+loans and advances676556+investment53030+accrued
interest231902+recoveries14550698 + Receiveable from

42
Govt.2164072+Prepayment 8279236+short term investments 24000000 +
cash & bank Balences5902144= 72828406

Current Libalities 2018= trade and other payables 59142912

CURRENT ASSET/CURRENT RESULT

YEARS LIABILITIES
2017 72592129/46814183 0.15%
2018 72828406/59142912 1.2

Interpretation
Current ratio showed a huge increase in the year 2018 to 1.2% from the
last year’s 0.15% which is a good sign for the organization

NET WORKING CAPITAL

Net working capital is a liquidity calculation that measures a company’s

ability to pay off its current liabilities with current assets. This
measurement is important to management, vendors, and general creditors
because it shows the firm’s short-term liquidity as well as management’s
ability to use its assets efficiently.

Much like the working capital ratio, the net working capital formula
focuses on current liabilities like trade debts, accounts payable, and
vendor notes that must be repaid in the current year. It only makes sense
the vendors and creditors would like to see how much current assets,
assets that are expected to be converted into cash in the current year, are
available to pay for the liabilities that will become due in the coming 12
months.
If a company can’t meet its current obligations with current assets, it will
be forced to use it’s long-term assets, or income producing assets, to pay
off its current obligations. This can lead decreased operations, sales, and

43
may even be an indicator of more severe organizational and financial
problems.

FORMULA

The net working capital formula is calculated by subtracting the current

liabilities from the current assets. Here is what the basic equation looks
like.

YEARS CURRENT ASSETS – RESULT

CURRENT LIABILITIES
2017 72592129-46814183 Rs.25777946
2018 72828406-59142912 Rs. 13685494

Interpretation
The calculation of this ratio show that net working capital in 2017 was Rs.
25777946 while in 2018 it is Rs. 13685494.

DEBT TO EQUITY RATIO

The debt to equity ratio is a financial, liquidity ratio that compares a

company's total debt to total equity. The debt to equity ratio shows the
percentage of company financing that comes from creditors and investors.
A higher debt to equity ratio indicates that more creditor financing (bank
loans) is used than investor financing (shareholders).

FORMULA

The debt to equity ratio is calculated by dividing total liabilities by total

equity. The debt to equity ratio is considered a balance sheet ratio because
all of the elements are reported on the balance sheet.

44
 YEARS TOTAL LIABITIES/TOTAL RESULT
EQUITY
2017 94159414/86218360 1.09%
2018 97096149/83013099 1.16%
Interpretation
Debt to equity ratio for the year 2017 is 1.09% while it increased in the
current year 2018 to 1.16, due to constant increase in the liabilities

3.6.2SOLVENCY RATIO

DEBT RATIO

Debt ratio is a solvency ratio that measures a firm's total liabilities as a

percentage of its total assets. In a sense, the debt ratio shows a company's
ability to pay off its liabilities with its assets. In other words, this shows
how many assets the company must sell in order to pay off all of its
liabilities.
This ratio measures the financial leverage of a company. Companies with
higher levels of liabilities compared with assets are considered highly
leveraged and more risky for lenders.
This helps investors and creditors analysis the overall debt burden on the
company as well as the firm's ability to pay off the debt in future,
uncertain economic times.

FORMULA

The debt ratio is calculated by dividing total liabilities by total assets.

Both of these numbers can easily be found the balance sheet. Here is the
calculation:

45
 YEARS TOTAL LIABILITIES/ TOTAL RESULT
ASSETS
2017 97096149/180109248 0.53%
2018 94159414/180377774 0.52%

Interpretation
Debt ratio slightly decreased in 2018 as compare to 2017 it was 0.53% in
2017 while in 2018 it decline to 0.52%

EQUITY RATIO

The equity ratio is an investment leverage or solvency ratio that measures

the amount of assets that are financed by owners' investments by
comparing the total equity in the company to the total assets.
The equity ratio highlights two important financial concepts of a solvent
and sustainable business. The first component shows how much of the
total company assets are owned outright by the investors. In other words,
after all of the liabilities are paid off, the investors will end up with the
remaining assets.

The second component inversely shows how leveraged the company is

with debt. The equity ratio measures how much of a firm's assets were
financed by investors. In other words, this is the investors' stake in the
company. This is what they are on the hook for. The inverse of this
calculation shows the amount of assets that were financed by debt.
Companies with higher equity ratios show new investors and creditors
that investors believe in the company and are willing to finance it with
their investments.

46
FORMULA

The equity ratio is calculated by dividing total equity by total assets. Both
of these numbers truly include all of the accounts in that category. In
other words, all of the assets and equity reported on the balance sheet are
included in the equity ratio calculation.

YEARS TOTAL EQUITY/TOTAL RESULT

ASSETS
2017 86218360/180377774 0.47%
2018 83013099/180109248 0.46%

Interpretation
Equity ratio for the year 2017 is 0.47% and in 2018 it is 0.46% which
means it slightly decreased than the year 2017 in current year which is a
good sign.

3.6.3 PROFITABILITY RATIOS

RETURN ON ASSETS RATIO - ROA

The return on assets ratio, often called the return on total assets, is a
profitability ratio that measures the net income produced by total assets
during a period by comparing net income to the average total assets. In
other words, the return on assets ratio or ROA measures how efficiently a
company can manage its assets to produce profits during a period.

In short, this ratio measures how profitable a company's assets are.

47
FORMULA

The return on assets ratio formula is calculated by dividing net income by

average total assets.

YEARS NET INCOME / AVERAGE RESULT

TOTAL ASSETS
2017 6824769/180243511 0.03%
2018 6994739/180243511 0.03%

Average total assets = Current year assets + previous year Assets / 2

180109248+180377774/2 = 180243511

Interpretation
This ratio for both years 2017-2018 is same i.e 0.03%. which is not a
good sign for the firm it should always increase than the previous year

48
 CHAPTER 4
SWOT ANALYSIS

SWOT is stands for strengths, weaknesses, opportunities and threats.

SWOT analysis is a careful evaluation of an organization’s internal
strengths and weaknesses as well as its environmental opportunities and
threats. In SWOT analysis the best strategies accomplish an
organization’s mission by exploiting an organization’s opportunities and
strengths while neutralizing its threats and avoiding its weakness. During
service I also observe these factors of bank and made a conclusion which
is as follows: and a failed one.

4.1 STRENGTHS

Every construction company builds. This is the foundation: to construct

what the client wants. This includes a new apartment complex, segment of
road, or school. But no construction company is exactly the same.
Although the strengths vary, there are a few every company should share.

Efficiency is number one.

Efficiency reduces expenses. It improves profits. It can mean the
difference between a three-year project versus a one year project. Missing
even one deadline is all it takes for a company to lose its good standing
with a customer.

Clients are more likely to hire a company that’s mindful of deadlines and
aims to complete their projects in a suitable time frame. Of course,
without sacrificing the quality and safety of their employees.

Meeting deadlines depends on strong project management skills.

Successful construction companies rely heavily on project managers to
oversee their projects. Without an expert’s eyes and ears on the project,
most will fail.

49
Many companies outside the construction industry need to focus on a
particular niche. Construction companies are lucky because they’re the
opposite; they thrive by working with multiple industries simultaneously.

Why do they do this? Because if one industry is hit, the company won’t
go down with it. Instead, they’ll have an abundance of clients who are still
in need of projects. It’s easier for a company to bounce back if they lose
25 percent of their profits, rather than 75 percent and more.

4.2 WEAKNESSES

Expanding on the point above, relying on one industry for clients will be
financial ruin for construction businesses. If they decide to work with
only one type of client, and the client’s business dies out, the construction
company is left with nothing. Because when client work dries up, so does
construction work.
For example, let’s say a company specializes in building new homes.
Initially, the area was booming. Families were moving in left and right for
months. But now, suddenly, no one new has come to town. Now the
company’s services become obsolete.

The company can sit, wait, and hope work picks up. They’ll be left
twiddling their thumbs while funds drain from the company account. No
business can survive while waiting for clients. Especially if their target
market’s industry is on the decline.

What can the construction company do? Diversify their workload (as
mentioned in the strengths section above).

Another weakness these companies face is poor decisions regarding

project management.
Some companies only promote their managers based on on-the-job
experience. Meaning, if they don’t have that specific experience, they’ll

50
never move up. Although hands-on expertise helps when overseeing
projects, it’s not the only thing necessary in a manager. Ignoring the
“management” part for the position may lead to faults in the planning and
execution of tasks.

4.3 OPPORTUNITIES

Construction companies should always be on the lookout for more clients.

They shouldn’t leave this up to fate. Instead, they should create the
opportunities themselves. Like by adding new divisions in the company.
Or expanding current divisions to allow for the increased workload.
Keep an eye out for developing trends. This is one of the easiest ways to
create more sustainable work. If you’re noticing public transportation
options are expanding in a region, it may mean more people are moving.
And where are those people going to move? In the homes built by
construction companies, of course.

Successful companies keep an eye on the news in the locations they offer
services. Not only to take advantage of growth. But also to see when
things are beginning to decline. This gives them the opportunity to shift
their business before financial ruin.

4.4 CONSTRUCTION COMPANY THREATS

Threats aren’t always controllable. That remains the same in every

business, including construction. For example, a company can’t prevent a
recession. And they can’t stop a decline caused by a decreasing economy.
Both of these examples are known as external factors. The only thing
anyone can do is react accordingly to these factors.

This is the situation when the economy declines. Or when people aren’t
able to make the same purchases they once did. Changes in buying
behaviors can happen quickly, especially if the economy or politics are

51
involved. A budding industry can be made obsolete in only a few years
time. Without proper differentiation of clients and services, construction
companies can be made just as dead.

52
 CHAPTER 5
CONCLUSION AND RECOMMENDATIONS

5.1CONCLUSION

Now-a-days there is one thing many Pakistani business organizations

agree on it is the deleterious effects of uncertain future on their business.

With the rapidly changing market place owing to breakthroughs in

technologies, lowering of barriers to international competition and

maturing of Pakistani consumers, this uncertainty is only going to

increase. In the ruthless scenario only the nimble and sue-footed who

have the ability to correctly read the changes in consumer preferences

before their competitors do and who have the systems to quickly respond

with better value proposition will succeed. Nundhyar Engineering &

Construction Battagram is equal to the task; it is providing a world class

professional base in the field of consultancy engineering to the employees

and also introduces the modern technology and quality improvement

programme for the experts.

In the end I conclude from this report that Nundhyar Engineering &

Construction Battagram is a multi-disciplinary consultancy company

that has evolved a divisional organization structure suited to its specific

needs. Nundhyar Engineering & Construction Battagram goal is to

attain self-reliance in engineering consultancy and replace foreign

consultants.

53
 Consequently, I can say that Nundhyar Engineering & Construction

Battagram has an excellent management system to meet the current

challenges.

5.2 RECOMMENDATIONS

1) Engineers and allied professionals should be provided facilities for

their in-service training.

2) Keeping in view the importance of computer technology, all

technical staff should be provided special training of computer.

3) Due to increase competition between engineering consultancy firms,

it is difficult to get new projects without proper marketing strategies,

therefore Nundhyar Engineering & Construction Battagram

should hire Marketing Professionals for this purpose.

4) Nundhyar Engineering & Construction Battagram should start

managerial training programme for its middle and senior level

engineers and allied professionals because just like other

organizations, Nundhyar Engineering & Construction Battagram

need competent managers to be able to reach their objectives both

effectively and efficiently.

54
 REFERENCES

 Annual reports
 Company Profile
 www.wikipedia.com

55