Servise Groups of Industries Internship Report

Internship report

MBA (Finance) University of Gujrat (Evening)

Internship report

Session 2012-2015

Master of business administration


Internship report

Internship report on Service Industries Limited

Service more Gujrat

Internship report submitted to the faculty of management and administrative in partial fulfillment of requirements of the degree of

Master of business administration.


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Acknowledgement

“I would like to say thanks toMr. Saleem (HR Manager), Muhammad Hassan (senior costing officer CTT& MTT) and Mr. Asif (head of Tax

department) who cooperates with me during my internship period and I could able to prepare this report.

Only because of their unique response and corporation I got awareness with service Industries limited. “


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Table of content

Description Page #

Table of content

Preface 8

Dedication 9

Executive summary 10-11

Section – 1

Body of the report

Introduction of the organization 11-16

Aim 15

Scope 15

1.2.2 Objective 15

1.2.3 Overview of organization 16-26

1.2.4 Brief history 16

1.2.5 Vision 17

Mission 17

Nature of organization 17

Business volume 17-19

1.2.7 Rewards and success 19

Product line 20

Service line 20-21


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1.3.1 PEST analysis 22

1.3.2 Political factor

1.3.3 Economic factor

1.3.4 Social factor

Technological factor

Contribution of organization toward economic development

24-26

Organizational structure 26

Organizational hierarchy chart 27

Management hierarchy 28

Number of employees 30

Main offices 30

Introduction of all department 30-37

HR department

IR department

Production department

Account and tax department

1.3.5 IT department

1.3.6 Costing department

Material management

Procurement department

1.4.1 Industrial engineering

Technical support


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Quality assurance department

Security

Comments on the structure of the organization 38

1.4.2 Section II

Internee work 39

Brief introduction of internee office 39

Starting and ending date of internship 39

Detail of supervisor 40

Weekly timetable 40-47

1.4.3 Detail description of department 47-60

Detail description of task 60-61

Summary of learning 616161

Skills, Responsibilities 61-62

Activities correlated with classroom knowledge6636 63

Conclusion

Summary 63-64

1.4.4 Observation 65

SWOT analysis 4848 65-67

Recommendations 67-69

References 69


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PREFACE

This report based on the observations, this is mad by me during the period of six week training in SIL Gujrat. It covers the general procedure through which service industries are operating the business. Only most relevant departments where I worked during my internship period are included in this report.


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Dedication

I am proudly dedicating my report to my beloved parents for all their love & guidance, which grow me in a shape that I make it up to this point.

Moreover, I am dedicating my work to my teacher as well as the internship advisor, who filled me with courage, commitment and awareness to follow

the best possible route, by his good style and by best possible training.


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Executive summary

Service is public limited Company in Pakistan. Service is registered Company name and “Servis” is brand name. Service is engaged in manufacturing and exporter footwear and rubber products. It also has interests in retailing. Its Group Company, SSC Private Limited, is the country's largest retailer and wholesaler of footwear. The Group was set up in 1958.The Company runs its footwear retail business under Servis brand as Service Shoe Stores. It has further established some of the most loved footwear brands including Don Carlos, Cheetah, Calza, Liza,Duke, Toz, Duke and Skooz. SSC a part of Servis Group Which has a rich heritage across over half a century and is today regarded as one of the most respected corporate citizens. This has proven to be a driving engine for the business that has produced millions of satisfied customers. The Company has strategic relationships with Group companies which offer world class footwear manufacturing facilities in Pakistan. SSC Retail Business currently comprises Company Operated Stores, Agencies, and Factory Outlets. The business is now eyeing Large Format Stores and Franchise Stores as its future growth engines. Service Group employs close to 8000 people in its following Group Companies:

Service Industries Limited SSC Private Limited Shoe Planet Soul Collections


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Servaid Pharmacy Above all are separate entities and work their own. Like there are three two outlets yet of Shoe Planet in Lahore and Karachi where there are imported brands with Service shoes are available. Soul collection is dealing in ladies shoes and same like Stylo.

There is a wide range of ladies shoes is available all the time on Soul Collection and Soul collection has their own network. Pharmacy has a good name in the field of Pharmacy and this is now a growing business. The main challenges faced by the Servis are high prices due to high taxes. I analyze the following things in organization:In accounts department double entry system is followed important functions and procedures that are verification of bills and payments to suppliers A/P, and all the receipts in term of sales A/R. moreover allocation of expenses with their relevant heads posting of vouchers, ledger and trial balance.

Main body of reportINTRODUCTION

Introduction to the organization:

Service Industry limited is written in the main gate of service industry limited Gujrat and servis for the best brand of life. Service industries limited manufacture and sale footwear, tyre tube and technical rubber products. Government appreciates the company first time in 1968. After this appreciation company has been awarded numerous trophies as an acknowledgement. Service Industries Limited (SIL) is a public limited company listed on the stock exchanges of Pakistan. Service industry limited is the largest manufacturer of footwear, tyres & tubes for two-wheelers, and has been the largest footwear exporter of the country for the


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last 10 years. Service industry is the big shoes exporter company in Pakistan. Today, company has shoe factories in Gujrat and Muridke.The factory follows the motto:“Customer satisfaction at priority” and that is the reason it is thriving for the last 38 years.Five factories in Gujrat and there is approx 4500 registered employees and 500 unregistered employees.

Factories in Gujrat

Leather shoe factory Canvas shoe factory Cycle tyre and tube factory Motor tyre and tube factory Rag division

Factory Outlets (FOL) in Pakistan There are 33 factory outlets in all over the Pakistan. Service Sales Corporation which is working under Service industries Private Limited is doing its business in retail which is further divides in FOL and A pair. According to management FOL is very small part of their business however retail big Giant.FOL strategy is very simple. FOL strategy is to sale the rejected material of factories special low price articles, dead articles which are not giving sale on the shops and also some A pair articles which are specially prepared on order from Local venders. I understood from this that the main purpose of FOL is to help out the company and save from losses which may be company have to bear because of rejection without existing of FOL.

Peak Season


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Company peak season starts from September to April and during this period company hires the extra workers and then lays them off after the peak season.Head Office

Service industries limited head office located in Lahore.Factories

In Gujrat, having the five production units. In Muridke , having the three production units.

Competitive edge

With a strong emphasis on product quality and innovation, SIL has built both local and international approval of company’s products.Products

All categories of leather footwear and sports shoes. Canvas shoes of Men, Women and Children. Rubber Sandals and Sleepers. Safety shoes and Footwear for defense force. Bicycle tires and tubes. Car tires and tubes. Motorcycle tires and tubes. Chemical weapons

Production Capacity

9500 pairs per day (exports and local articles) It’s worth almost 60-65% of local production Canvas shoe 7,920,000 pairs per annum Tyre and tube 14000 and 19000 per day with rejection 3% & 1%


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Brand

Servis and its roots are grounded firmly in Pakistan and its people. We understand their needs, their lives and their dreams. Sharing in their moments both big and small, Servis has been their companion in happiness for over 50 years. Mostly customers are satisfy with the soft and easy shoes of servis industry. And with our commitment to constant innovation and uncompromising quality, we try to delight our customers with the very best products and services. . Popular Service brands include Cheetah, Don Carlos, Calza, Liza, Skooz, Toz, Duke, Servis and more. Servis offers a new product range twice a year at the beginning of summer and winter seasons.

Distributors

Service industries limited having 12 major distributors in which 5 distributors are for bicycle tyre and tube and 7 for motorcycle tyre and tube sales.HistoryService Industries Limited

A services industry limited is a public limited company and listed in Karachi and Lahore stock exchange. Industry is incorporated under the companies’ ordinance of 1913(now companies’ ordinance 1984).

Company Name Company name is “service”


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Brand Name

Company brand name “servis”

Company Share

Now, company share is trading 70.50% per share which is the 7times more than of its value.

Aim

To know about the professional life in organizations. To improve my personal skills in industrial sector. To gain the experience that help me in future. It also my aim to gain the experience of managing time ,people

and other things.Scope

As an internee in SIL the main focus of my study research was on basic concepts and procedures of running any business. These concepts include internal and external environment of business. Internally business activities were related to employees and management staff of SIL. So this study from the relevant department will help me in my practical and professional life.

Objectives

Following are the objective of the industry.1. To provide the quality products to customers at the time.2. Try to reduce the productin cost and increase the products.3. More usage of information technology for better work.4. To know that how the companies works in the competitive environment.5. To learn the changing environment.


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6. To give the experienced services to every individuals.7. To understand the customer’s needs and wants.

Overview of organization

History of the Organization

Ch. Nazar Muhammad, Ch. Muhammad Hussain and Ch. Muhammad Saeed Was the initiate members of service industries limited and only death could part them. With their co-proration and understanding about the whole organization help them to exist and flourish the organization as per the requirement of the tim and present business world. Service Industries limited Starts from “servicepura” a town 20km from Lahore. Now, their boards of directors are (Ch. Nazar Muhammad, Ch. Muhammad Hussain and Ch. Muhammad Saeed) and operated by its own management. . Nazar Muhammad, Ch. Muhammad Hussain and Ch.Muhammad Saeed start there work from Lahore in 1941.As a first step, hilal tanneries were built in Gujrat which started functioning in 1954. Ten years later, in 1964, the shoe factory followed by a Textile mill was also set up in Gujrat. This was in addition to a shoe factory, the company already had in Lahore. Their organization was then built up in a most organized and scientific manner. The company had opened its own whole sale and retail shops all over the country, enlacing the consumers to buy shoes at fixed prices which were a new trend at that time. This was much appreciated by the consumers.


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Vision

“To be a market leader providing quality footwear, tyres and tubes and allied products. To strive for excellence and global

recognition by continuous improvement, innovation, dedication and growth”

Mission Statement

“To satisfy the customers by promised quality and reasonable price footwear other products through the country.” “To satisfy its employees through good management policies”To be a result oriented and profitable company by consistently improving market share, quality, diversity, availability, presentation, reliability, and customer acceptance.

Nature of the organization

There are two production setups of the Service group, one is situated in Muridkey while other in Gujrat. The Gujrat factory is producing the famous brands in tyres and shoes these may include Cheetah, Don Carlos, Calza, DukeLiza, Skooz, Toz, Servis.The nature of service industry limited is public limited company.

Business volume, reward honors&success stories etc during last 5 years:

Business Volume

The service group is earning 12.7 billion which equal to 90.35 million US$ annually. The major contribution in this revenue is from the Service factory Gujrat which comprises LSF, MCTT and CTT.


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Production figure Quantity of footwear of last 5-year (From 2008 To 2012) as fallow.

Year Quantity

2008 5,701,584

2009 5,506,001

2010 6,616,431

2011 6,461,593

2012 5,903,

Five year at a glance

2012 2011 2010 2009 2008Rupees in million

Sales12,16

711,54

9 9,421 7,6806,39

3

Gross profit 1,,546 1,569 1,293 1,5941,03

8Profit before tax 192 535 488 936 478Profit after tax 127 433 328 661 341Share capital 120 120 120 120 120

Share holder’s equity 2,020 2,013 1,700 1,5221,04

2Property,plant&equipment 1,649 1,612 1,425 1,024 887

Total assets 6,422 5,639 4,543 3,6513,34

2Net current assets 974 827 727 820 530


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Market value per share (Rs) 167 195 240 266 61

Dividend (%)Cash-interim - 25 75Cash-final 75 100 75 125 75

Profitability (%)

Gross profit 12.71 13.59 13.73 20.7516.2

4Profit before tax 1.58 4.63 5.18 12.19 7.48Profit after tax 1.05 3.75 3.48 8.60 5.33

Return to shareholders

R.O.E-Before Tax (%) 9.53 26.56 28.71 61.4945.9

1

R.O.E-After Tax (%) 6.30 21.53 19.30 43.4232.7

0

E.P.S-After Tax(Rupees) 10.59 36.03 27.28 54.9428.3

2Price Earning Ratio 15.78 5.41 8.80 4.84 2.15

Activity(Times)Sales to total assets 1.89 2.05 2.07 2.10 1.91sales to fixed assets 7.38 7.16 6.61 7.50 7.20Inventory turnover ratio 4.98 5.81 6.04 4.89 5.56Interest coverage ratio 1.60 3.25 3.75 6.83 3.89

Liquidity/LeverageCurrent ratio(Times) 1.26 1.26 1.31 1.46 1.28Break-up value per share (Rs)

167.93

167.34 141.3

126.54 86.6

Total liabilities to 2.18 1.80 1.67 1.40 2.21


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equity(Times)Debt equity ratio(Times) 19:81 14:86 16:84 14:86 30:7

Reward honors & success storiesIn 2012 servis industry able to cover the quality related problems. Due to the best performance of servis industry limited the company achieves the Best Export Performance Award in 2012.

Product and Service lines

Product line:Shoes:Service Industries Limited is a design led and design focused company. The company design talent and capabilities set it apart from other market players. Their in house manufacturing covers all aspects of shoe manufacturing value chain from model designing, cutting, stitching to lasting (injection) & finishing and downstream activities such as marketing. At present, their capacity is more than 40,Millions pairs of shoes every day.Tyres and Tubes: Service Industries Ltd has the strong command in tyres & tube manufacturing in Pakistan since 1970. Service Industries Limited has been dealing in bicycle tyres & tube business since 1970.Specialized in manufacturing and marketing products for the masses, their main business activity is producing tyres & tubes for Motorcycle / Bicycle at Tyres and Tube factory.SIL are a major supplier of tyres & tubes to Japanese motorcycles manufacturers like HONDA, YAMAHA and other local motorcycle assemblers in Pakistan. Service Industries Limited is listed as registered Company


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on all major stock exchanges of the country.They have successfully increased their capacity for tubes as well as for more advanced rickshaw tyres last few years. Service line:They are environmentally responsible neighbor and conserve environment for future generations through sustainable development. They optimize energy efficiency, decrease water use and waste water pollution, reduce and reuse materials, and recycle waste from their shoe factories. They integrate best environmental health and safety practices and design into all their businesses and operations. Servis group is Pakistan’s largest footwear manufacturer and exporter.Process to introduce the product to customers

1. Introduce the product to customers.2. Advertising is the major source of introducing the products to

customers e.g. advertising through internet newspapers banners etc.

3. Then contact to these customers through phone and get the information.

4. Then senior manager meets these customers.5. Then make the shoe according to customer need. Like if they

don’t want laces on the shoes then remove the laces, if they say that soul should be like this then soul must customize like that etc.

6. Receive the Query from customer.7. Categorized these customers.


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Customer Services

Servis provide Customer Services through give them warranty and guarantee on shoes.

PEST Analysis:

The factors that are beyond the controls of the company are called the PEST analysis. These are the macro environment factors that externally effect the organization that’s why they are also called the external factors. These are the political, economic, social and the technology factors.

Political Factors


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The political situation of Pakistan is not satisfactory. Due to the rapid change in the Government every government sets its own new trade policies. Following are the effects of political system on Servis.

High taxation on growing industries like Servis.

Employment practices, Unions, Associations are very challenging. Political Interference and harassment leave no independence in

work.

Government’s policy on the economy. Change in colors and composition of structure.

Terrorism

Economic Factors

The economic condition of Pakistan can also affect the foreign investors increasing inflation rate make the cost of production high and thus reduce the profit margin of the investor.

Business cycle stage (e.g. prosperity, recession, recovery)

Exchange Rate Mechanism

Inflation rate

Infrastructure quality

Skill level of workforce Heavy operating cost is found in daily working.

Social-Cultural Factors


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The change in the lifestyle of the people affects the growing demand of the footwear products. The change in the lifestyle and needs in different demographics also affect the demand of the customers.

Changing Life Style

Adequate empowerment Social culture (gender roles, etc.)

Demographics

Different Age Groups

Reach of the media to the population Cultural restrictions to save the money Declining education and work ethics

Technological Factors

Technological advancement in all the sectors of the country has changed the entire socio-economic environment. The technology can cause tremendous change in quality and quantity of products and this effect the market position of company. But unfortunately Service industry has less focus toward technology

Impact on cost structure Inadequate communication infrastructure

Legal Environment

Labor Law is the basic legality imposed by the government. Service industry limited is a legal public limited company. It is fulfilling the entire legal requirement for becoming public limited company. It is also satisfying all the legal requirements of workers e.g. all the workers are associated


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with social security and they are getting every benefit which is legally required by Government of Pakistan. Following are the legal concerns:

Control on import material

Quota polices Control on export

Contribution of organization toward economic development:

SIL is contributing a lot of toward economic development. Service factory in Gujarat remove the unemployment in Gujrat and other cities providing jobs also improve the living style of peoples Due to increase the revenue of industries contribute to economic development. Service industries export its main head of generating revenue. Service also pay healthy amount of tax to the government every year.

1. Ch. Nazar Mohammad, Mohammad Husain Memorial Society Hospital:

A fully equipped 8 bed free hospital in Gandhra, Gujrat. This hospital has fully functional Operation Theater and X-ray, Laboratory and ultrasound facilities.This hospital provide free medical treatement to service imployees.

2. Service High School for Boys, Gujrat: Established in gujrat this school serves as an educational institute for the underprivileged students in the area.This school provides quality education to the poor residents of the area free of charge.

3. Service Free dispensary:A dispensary that caters to poor and the needy people of Gujrat district. Medical facilities such as consultation, ultrasound, X-ray, laboratory and medicines are provided free of cost.


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Service industry limited company can export their products on international level that can play a better role in the economic development of Pakistan.

4. Shalamar hospital This hospital was established in 1982 in Lahore with the help of contribution made by the founder of our company Chaudhry Nazar Muhammad and Chaudhry Muhammad Hussain.

BCG matrix (Boston consultant group)

This was not difficult for me to find that where SSC falls in BCG matrix. SSC falls in Stars situation because Stars generate large amount of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation.


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ORGANIZATIONAL STRUCTURE

The structure of service industry limited Gujrat is functional. It has large number of departments in which positions are grouped according to their main functional (or specialized) area. There is a long chain of command, each chain member having one or more sub-ordinates there are large number of level like resident director, general manager, managers, Assistant managers, executives, staff, supervisor, and workers. A very short spans of control each member having. Every manager at SIL is trying to keep most of the authority in his own hands. All managers keep the key decisions at their own and do not interested to share the key matters with team members.

There are three factories 1st one is Tyre & Tube 2nd RAG and 3rd Footwear. Two general manager do control these factories.

Organization Hirarchy chartThe organization hierarchy chart is as fallow.


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MANAGEMENT HIERARCHY

Chairman

Mr. Ahmad Javed


GEC

Tyre & Tube

GM Mr.Ghulam Ahmad

Factory Manager

Production

R&D

Costing TD

Planning TD

Quality

FG

Maintenance

CTM Mr. Ghazanfar Ali

Lab

Mixing

RAGFootwear

GM Mr.Ghulam Muhammad

Factory Manager

productionModel Room

Industrial Engg

Quality

Costing FW

Planning FW

FG

Maintenance

AccountsITManagerial ManagementHR&AdminEngineering

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CEO

Mr. Omar Saeed

Board of Directors

Mr. Arif Saeed Mr. Ahmad Javed Mr. M. Ijaz Butt Mr. Hassan Javed Mr. Riaz Ahmed Mr. Manzoor Ahmed(NIT Nominee) Mr.shaukat Ellahi Shaikh Mr.Muhammad Amin

Group Executive Committee

Mr. Arif Saeed Mr. Omar Saeed Mr. Hassan Javed

Management Team

Footware Division

Mr.jawwad Faisal(chief commercial officer)

Mr. Muhammad Usman Amjad(chief financial officer)

Mr.Ghulam Mohammad(General manager gujrat plant)

Mr.Muhammad Sohail Akhtar Chaudhry(General Manager Sales)

Mr.Hyder Usman Chaudry(Head of Human Resourse)

Management team (Tyre and Tube Division)


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Mr.Jawwad Faisal (Chief commercial officer)

Mr.Muhammad usman amjad(chief financial officer)

Mr.Muhammad ejaz(country manager sales and marketing)

Mr.Ghulam ahmad cheema(General Manager)

Mr.Ghazanfar ali(chief technical manager)

Mr.Hyder Usman chaudry(head of human resource)

ADVISOR

Ch.Ahmad Saeed

Major clients

The major clients compress of famous brands of U.K, Germany, Denmark, Holland, France and Italy. Locally the shoes are marketed through service Sales Corporation.

Market share Tyre division is the one of the group of the service industries comprises of two leading units motor cycle and cycle tyre and tube factories located at G.T road Gujrat. It is also holds market share of 45% and 55%. In motorcycle and bicycle tyre and tube respectively.

Tyre division has been supplying tyres and tubes to all major original equipment manufacturers (OEM) with high share like 70% to Atlas Honda limited (AHL), 50% to Islamabad automotive company limited (LACL) and 100% to sohrab bicycle manufacturing company, Lahore.

Number of employeesCompany was started the venture with few numbers of employees. Service Industries Ltd. is operating number of business but it has


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two shoe factories, head office in Lahore and branch office in Karachi. The total numbers of employees related to footwear division are more than 8,000 out of which more than 5,000 are working in Gujrat factory and about three thousand at Muridkey factory and reaming at head office and branch office. The Gujrat factory further divided in to three portions footwear, tyres and RAG division. The employee’s ratio among these is 55%, 35% and 10% respectively.

Main officeThe main office having general departments like Accounts, IT, Costing, Tax and procurement along with the offices of resident director, Conference room and general managers. Two general managers are control by service industry GM Mr. Ghulam Ahmad and GM Mr. Ghulam Muhammad.

The Service factories have their Head Office at Lahore. Their Finance, sales and marketing departments are also working at head office. It is situated at Jail road Lahore and branch office at Karachi.Introduction of all Departments:

Service has divided its departments according to functions. Each department is responsible to handle different tasks. It has number of employees being headed by a department’s head, which is mostly a manager. The departments are inter-related to each other. Managers have authority, so they responsible for group performance. Following is the list of departments working at Service Gujrat.

1. Human Resource Department:

The H.R department plays vital role in the prosperity of the organization. In S.I.L Gujrat the H.R develop job descriptions and Organizational chart and define responsibilities and authorities of the employees who manage, perform and verify their work accordingly. The HR department is responsible to provide the man power to the all other departments.


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Leaves also approve in H.R department.This department receives demand of the employees from the department heads where needs the employees. Then H.R officials evaluate the job with the head of department and after approval by the G.M the H.R assistant manager appoint the person.All work related to human are maintained in H.R department.

H.R department issues the trial card to new workers .

H.R department issues the pay slips to employees.

2. Industrial Relation Department:

This department maintains the record of workers like HR Department. In the Service industries Ltd. Gujrat record of staff is prepare and maintains by H.R and workers record is maintain by IR. This department arranges the classes of newly appointed work in the training school. Three employees are working in this department leading by a Manager. It takes necessary Disciplinary Action against complaints to settle down the disputes and differences. It maintains good relations among employer and workers. Any problems related to workers are handling in that department. If any worker does not work properly warning latter are issues to that worker.

3. Production Department:

In the production department the production manager can check out the work of all workers. Production department involve the process of producing the product. In manufacturing concern the largest and most important department is production department. Raw material receives in model room .checking of raw material. Cutting of raw material. Upper part of shoes goes to ladies department she can stitch the shoes and after that upper goes to males for the purpose of sole making .And quality control manager can check the quality of


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material .Different types of article are produce in production department.The production department is divided into following departments according to their product and brands they produce and operations they perform.

Leather Shoe Factory

Shoe Factory (LSF) is concern with the production of footwear. Tax rate on lather shoe is 2%. It is headed by the Factory manager. Further this department comprises several departments and sub- departments. In Leather shoe factory main departments are Lasting and PU (production Unit). In lasting departments assemblies lines produce sandals, chapels and children shoes and in P.U department automatic direct injections machines are used and it made close supports shoes. Other departments included in LSF are:

1. Planning

2. Upper Cutting

3. Upper Closing

4. Assembly

5. Lasting

6. P.U

7. Sole Making

Tyre & Tube Factory

The Tyre and Tube Factory produces tyres and tubes. It is also controlled and managed by GM Mr.Ghulam Ahmad CTM Mr. Ghazanfar Ali . MCTT and


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CTT are its two main departments. It’s is tough for workers to work in these departments. So the turnover rate is high. Following are its sub department.

1. Planning

2. Motorcycle Tyre Making3. Bicycle Tyre Making

4. Motorcycle Tube Making

5. Bicycle Tube Making

RAG

It’s not a big factory. It is also controlled and managed by GM Mr. Ghulam Muhammad. Chemical weapons is produce in respiratory anti gas division.

4. Account & Finance:

At S.I.L Gujrat one manger along with the deputy manager and assistant manager is leading the accounts department. Double entry book keeping system is being used by the company. The E.R.P system is being used to run functions smoothly. This department is divided in to two sections. One section is purely accounts in nature while other is dealing with wages and salaries issues. This department deal with wages, salaries, provident fund, budgets, bill verification, payments A/P, receipts A/R, pensions, loans day-today expenses and accounts management.

5. Tax Department: Tax department include sale tax and income tax related transactions. They prepare invoices of sale tax for SSC, SBL Kalara, Calza, CTT, ATT and ULTT. They calculate 5% and 16% tax for different kind of


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invoices. Some invoices are nontaxable invoices as descriptive item is nontaxable.

6. I.T Department:

I.T department is working as the system support department for all the other departments so that they can perform their activities effectively and efficiently. I.T department of the S.I.L Gujrat is responsible to manage all the activities relating to computer systems and database.

Basically there is numerous motivation of implementing management information system. This system should be capable to provide the necessary data for decision making immediately to top management, managers and front line managers.

7. Costing Department:

Costing department performing very important function it allocate the materials and their quantities to be required for the bulk production and prepare the cost sheet of each article. It is divided in to two sections.

Costing Footwear

Costing Tyre Division

Department receives the orders from planning department raise bill of material that Includes how much material to be required to produce the order and how much value it carries.

8. Material Management:

Material management perform vital role in the organization this department made of all type of purchases. Department is divided in


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two segment local and foreign purchases separately. Local department further divided in to 6 sections that include Leather, Packing, chemical, synthetic, Grinderies and Technical equipments. Moreover working on inventory management and arrange the material timely is the key responsibility of this department.

9. Procurement Department

Procurement department raise the purchase order on the basis of bill of material that receive from costing department and made all adjustment of material to avoid dead stock. Department establish and maintain relations with suppliers and ensure them to delivery within the lead time. Lead time for local purchase is 40 days and for import are 3-months.

Raw material Receiving Room

The receiving room receives and inspects the material to make sure that the material is according to documents enclosed which is called delivery challan. It only ensure the quantity and not quality.

Raw material Stores

Stores are built in the organization to hold the stocks and for safety of material. Material is lying in the stores is very organized manners along with their bin card and computer codes. The stores include chemical store, technical store, leather store, packing store, synthetic store, grindery store, technical store and sole store. Stores receive the materials from the receiving room.

Finish Goods Warehouse

The shoes which are manufactured in the production hall are sent to the finished goods godowns, where they are stored until they are


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dispatched to its destination. There are four stores for the finished goods which are retail store, wholesale, export godown and Motor cycle tyre tube and Car tyre tube godown.

10. Industrial Engineering:

It is new department exist recently in service Gujrat. Purpose to create this department is to measure and improve the output and operational efficiency of the production unit.So that productions not suffer and product can be produce with their full capacity. It has two sub departments.

Footwear Tyre & Tubes

11. Engineering Support:

It is supporting department chief engineer heads this department with number of engineer and technicians. This department supporting in term of:

Maintenance of Tyre and Footwear section

It comprises Electronics and Electrical division

To monitor and controlling the compressor work efficiency

To monitor and controlling the Boiler work efficiency Power house working Maintenance of various types of moulds which is used for

production

Checking and controlling carpentry section.


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This department is responsible to maintain the all factory asset running smoothly if undertakes preplan maintenance of all the machinery after the specified period.

12. Technical Support:

Chief Technical Manager is the head of this department. All material that includes process of chemicals is control by this department. It includes

Raw Rubber processing

Main Laboratories

P.V.C Molding and pressing

There are two laboratories at SIL Gujrat one for shoe division called main laboratory other for tyre division. There are number of qualified technician are sporting him.

13. Quality Assurance Department:

Quality assurance manager is appointed to check out the qualities matters and responsible to deliver the goods to finish godowns to avoid end customer complaints and to goodwill for the company. It is duty of Quality assurance manager look after the claim goods. This department receives these shoes and makes report of its defects and sends to the relevant persons to check whether the claim is justified or unjustified.

The company ensures that its quality policy is understood, implemented and maintained at all levels of the organization to guarantee maximum benefits and achievements in the shortest possible time.


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14. Security:

In the S.I.L Gujrat the security department is responsible to keep the law and order inside the factory. They are responsible to handle any misconduct and to keep the eye on the workers to stop theft.

The security staff is appointed at gates and other important places inside the factory. They are responsible to check the vehicles and coming persons.

They cannot allow any local person to enter in the industry without any permission .If any person want to met with any department manager security guard firstly call that manager and after the permission of that manager he can allow that person to go that department. Now automatic security system is installed in the factory close circuits cameras are fixed to check out activities inside the factory.

Comments on the structure of the organization

The structure of service industry limited Gujrat is functional. Hierarchy of each department is defined according to need of organization. Two general manager can control the organization.

There are few cases in services industry limited gujrat that only a single person can handle both canteen and shoe division. Organization has large number of departments in which positions are grouped according to their main functional.All department are related with each other.All work related to account tax IT and costing are done in the main office of the service industry limited gujrat .


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Part IIInternee workBrief introduction of internee’s office/branch

Introduction of branch:Service Industries Limited (SIL) is a public limited company listed on the stock exchanges of Pakistan.The company employs more than 6,000 people in its facilities located in Gujrat and Muridke and exports its products in many destinations around the world. Now service industry in Gujrat has two major departments shoe section and tyre /tube facory following factories are associated with it.

Leather Shoe Factory (LSF) or (F.W) Bicycle tyres and Tube(C.T.T) Motorcycle Tyres and Tube(M.C.T.T) Rag Division(T.R.P) Rickshaw Tyres Tube (ULT) There is a main office having general departments like Accounts, IT, Costing and procurement along with the offices of resident director and general managers and conference room.

Internship date:Starting date: 1st august 2013.Ending date: 11th September 2013.Duration: The tenure which I have spent in industry is about six week. Detail of supervisors:


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Supervisor: M. AsifPosition: Tax officerSupervisor : M. ArshadPosition:

Supervisor : Malik pervaizPosition: Production manager(LD)

Internee work Weekly timetable1 st week

Task # 1 (1st August 2013 to 5th August 2013)

Servis industries Limited Gujrat

Department: Production

Supervisor: Mr. Malik Pervaiz

S.#

Date Day Activities

1 01-08-2013 Thursday Introduction with supervisor and brief introduction of production department. Visit of ladies production department.

2 02-08-2013 Friday How to deal with workers. I learn how


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can they make salaries sheet on excel.

3 03-08-2013 Saturday Holiday

4 04-08-2013 Sunday Holiday

5 05-08-2013 Monday Learn about filling of applications of workers on HRIS.How can they maintain canteen record on excel.

2 nd week

Task # 2 (6th August 2013 to 12th August 2013)

Service Industries Limited Gujrat

Department: Tax

Supervisor: Mr. M Asif

S.# Date Day Activities

1 06-08-2013 Tuesday Introduction with supervisor. Prepare debit notes for (rate difference, excess quantity, etc). Sale tax procedure, categories, sale tax rates.

2 07-08-2013 Wednesday

Posting of invoices of sale of R.M in ERP. And check the claims of parties.

3 08-08-2013 Thursday Eid Holiday


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4 09-08-2013 Friday Eid Holiday

5 10-08-2013 Saturday Eid Holiday


7 12-08-2013 Monday Posting of invoices of sale of R.M in ERP.Learn about cancelation register.

3 rd week

Task # 3 (13th August 2013 to 19th August 2013)


Department: Tax

Supervisor: Mr. M Asif


1 13-08-2013 TuesdayI learn about scrap invoices prepare the scrap invoices and posting of scrap invoices in ERP system. Prepare Sale tax invoices and send data to Export department for commercial invoice.Posting of raw material sale invoices in ERP system.


Independence day holiday


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3 15-08-2013 Thursday Learn about Changing the rate of sale invoices on ERP system.(x factory price to retail value). Clarification and preparation of sale invoices of tyre factory responding party issues. Checking of sales invoices at retail prices and claim invoices are checked at exclusive value.

4 16-08-2013 Friday Prepare and file monthly sales tax return. Prepare and provide monthly certificate of sale tax deduction on behalf of suppliers. Checking of sales invoices at retail prices and claim invoices are checked at exclusive value on calculator.



7 19-08-2013 Monday Changing the rate of sale invoices. Check the invoices at retail price with calculator.

4 th week

Task # 4 (20th August 2013 to 26rd August 2013)

Department: Account


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Service Industries Limited Gujrat Supervisor: Mr. M Usman

S.#

Date Day Activities

1 20-08-2013 TuesdaySale tax invoices. Process of entering sale tax invoices in system.


Learn about print (how to take print of vouchers after entering the sale invoices in system.

3 22-08-2013 ThursdayFunctions of account department. Stamp on invoices.

4 23-08-2013 Friday Arrangement of vouchers on serial wise.



7 26-08-2013 Monday Sale tax invoices. Process of entering sale tax invoices in system.

5 th week

Task # 5 (27th August 2013 to 2nd September 2013)

Department: HR


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Service Industries Limited Gujrat Supervisor: Mr. M Arshad


1 27-08-2013 TuesdayToday I make the trial card of new workers by seeing their documents. Arrangement of pay slips of employee on employee code wise.


Record of employee data in smart term system for salary.Filling of employee’s confidential form and files.

3 29-08-2013 ThursdayUpdate the employee status in HRIS system. Update the files of employees update annual increment of employees like salaries and grade.Make trial cards of Mc tube Mc tyre and mixing department.

4 30-08-2013 Friday Arrangement of dead files. Posting of leaving employees in HRIS system.



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7 02-09-2013 Monday I learn how to approve the employees leave in HRIS. Change the employee status.

6 th week

Task # 6 (3rd September 2013 to 11th September 2013)


Department: Account & income tax

Supervisor: Mr. M Usman


1 03-09-2013 Tuesday Approving supplier invoices after confirmation the rates and quantities on invoices.


On leave

3 05-09-2013 Thursday Arrange and verify A/P vouchers.

4 06-09-2013 Friday Preparing and arranging vouchers for approved invoices which are ultimately attested by manager accounts.


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7 09-09-2013 Monday Leave

8 10-09-2013 Tuesday Income tax procedure


Different rates of tax.

Detail Description of departments:

PRODUCTION DEPARTMENT

Introduction with supervisor and brief introduction of production department. He tells me about production.In Ladies department I learn how they can maintain the record of workers. In production department manager can check out the workers performance on daily baises.Ladies also work in production department as a worker but there are no ladies staffs in industry.Tasks are given to worker on daily biases for completion.In ladies production department about 350 ladies work at a time.If any worker are in leave it also record in department.If any worker are absent in their job amount are deducted from their salary.All record about workers related to production is maintained in departmentI learn how can they fill the applications on HIRS and also I learn how can they make the salary sheets on excel. In production department they manually make the canteen record on register and then post in excel .After the sign of production manager malik pervaiz record are send to HR department.In production department of ladies work on different machines for the purpose of making the upper part of shoes. The ladies can ready


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the upper pairs of shoes then pack the pairs 10 pairs in one pack and send the pairs to male production department for putting of sole.Shoes can ready after the different process.Planning, Upper Cutting, Upper Closing, Assembly , P.U ,Sole Making.

Different type of servis shoes are ready in production department like Duke, cheetah, Don Carlos, Calza, Liza, Skooz and Toz.

The production department tells about the demand of the material which they needed.

TAX DEPARTMENT

Tax department (sales tax on purchase)Introduction with tax officer M.Asif and assistant tax officer Gohar Ayub and allocation of sale tax.Stamp on invoices.Stapler the invoices.Cheek the invoices.Record of sale invoice and change the rate.Posting of invoices.Record of raw material invoices in Enterprises resource planet.Verification of summaries and reports affiliated hospitals like Sandra hospital and service free hospital etc.Clarification and preparation of sale invoices of tyre factory and responding party issues.

Tax department (Sales tax on sales)Checking of invoicesCorrect national tax number and sale tax registration number is mentioned on all the sale tax invoices of entries issued to us. The correct digits of national tax number are 8 and sale tax numbers are 13.If a person pay tax but he has no NTN number then F.B.R issue C.N.I.C number.Extra work Stapler the invoices Stamp on invoicesArrangement of invoices

1. Sales Tax Procedure2. Categories3. Sales tax rates4. Export sale tax


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All invoices of raw material are recorded in ERP software. I learn about cancelation register the federal board of revenue can check that if any mistake arises. FBR check the cancelation register by seeing both account and purchases.I also learn about checking of good declaration four things are mention in goods declaration like bill of entry, bill of export, baggage declaration,Transhipment permit. But we check the G.D according to bill of entry and bill of export.we check G.D by seeing the date G.D L.C ST and amount.

Sales Tax

Standard rate of tax is 17%

Sales tax on Purchase (local purchase)

Sale tax changed the every year Standard rate is 17% Purchase order prepare by the purchase department When agreement made with the party then purchase order issued Goods delivered Tax department check the quality and quantity of the goods that

goods According to the FBR(Federal board of revenue) or not

Purchase entry

Activities that perform the service industry:

Manufacturer Importer Exporter Distributer Retailer Dealer Wholesale

Tax rates

On registered companies 17%


Date Particular L/f AmountMaterial a/c XXXSales tax invoice a/c XXX

Party a/c XXXGoods Purchased

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Registered companies made sales tax invoice If the companies are registered and the purchase material is

related to the footwear then no tax charge like leather 2%

On Un registered companies Exempt Unregistered companies only prepare rough bill they does not

made the sales tax invoice

Tax on import purchase

First Bill of entry is made by the custom department in Karachi. Standard rate on the import purchase is 17%,5% & 2 % Make the payment of the excise duty and all the other sales tax are

paid by the custom department through bank. Then Bill of entry is received by the Gujrat Industry. One copy send to the Head Office and Original copy received by

Gujrat Industry. All the original record send to the tax department.

Tax on exportNo tax are apply on export according to law.

Purchase entry

The bill of entry is checked by the head office and according to this prepare letter of credit

Letter of credit is send to the service industry. Original copy of bill of entry and letter of credit send to tax

department

Sales Tax Procedure

First the sales department prepare the sales order . After the agreement they receive purchase order from the party. Goods receive.


Date Particular L/f AmountMaterial a/c XXXSales tax invoice a/c XXX

Party a/c XXXGods Purchased

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2copies of sales tax invoice send to the party and original copy take by department.

Category which industry produce

1. CTT (cycle tyre tube)2. MCTT (motor cycle tyre tube)3. LSF (leather shoe industry)4. RAG Army goods e.g chemical weapon5. Raw material

Sometimes, on the monthly basis, we receive the services from the party e.g. you give the shoe to the party for stitching. When party after stitching shoe send to industry then industry give sales tax invoice to the party and made the payment

Scrap sales Scrap or damage material takes in scrap .e.g. destroy

computer, machinery etc Sales of fixed assets(local sales)

Sale of the computer, machinery etc

Sale entry

Date Details L/F Dr. Rs Cr. RsParty a/c Xxx Sales tax payable a/c xxx Material a/c X xxx Sale of goods

Sales Tax rates

Type Rate

Tyre tube 17% (retail value)

Retailer/FPS 5%, 17%

Footwear 2% and 1%further tax against U/C(finished goods)

Sales related to the footwear done by the Service Sale Corporation (Marketing Department).This department separately registered.

Tyre tube


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Sale tax on foot ware 5% to register customer and for unregister customer 5% and 1% further tax .Sale tax on against the sale of raw material 2% to register customer and for unregister customer 2% and 1% further tax.

Sets of CTT, MCTT

1. One set is send to the head office ( Tyre tube department)2. 0ne set is send to the tax department (original)3. One set is send to the accounts department4. One set is send to the IT department5. One set is send to the party6. One set is send to the head office (EPR department)

Sales tax Return is file on the monthly basis (within 15 days).According to FBR format return sales tax return is file .

HeadAnnex-A (Purchase local)

Annex-B (Import purchase)

Annex-C (Sales local)

Annex-D (Export sales)

This applicable against sales tax return.Export Sales

Receive the order form head office. Dispatch note send to the Head office. one copy send to the

accounts department, 2nd copy taken by head office . And original send to the tax department. Head office issue commercial invoice. One copy send to the

accounts department and original send to the tax department.


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Sale entry

Date Details L/F Dr. Rs Cr. RsParty a/c Xx Xxx Export sales a/c Xx Xxx Goods sales

Head office send the shipping goods that tax department received

Karachi port gives the goods declaration according to the bill of exchange When the material send to the Karachi port.

One copy sends to the tax department and according to the sales tax return and they made entry.

All record related to hospital electricity bills free schools etc are maintained and check in tax department.

Accounts Department

In service industry limited the accounts department followed the British style accounting. Double entry systems are used by the service industry limited.ERP software are use in account department.

Functions of accounts department

There are various functions are performed in accounts department of service industry

Comparison of cash flow , budgeted vs. Actual Fixed asset schedule report Preparation of production statements Financial changes (payments of loans/ rent of head office Lahore) Cash/balance in hand Wages and salaries statements Ending adjustments Month wise sales and production value Preparation of statements Voucher preparation Cash distribution Posting of vouchers in ERP

Receipts


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Recovery from sales of shoes through fair price shop Sales proceeds of left over raw material Recovery from CTT & MCTT Retail stores sales of shoes

Payments

Utilities expenses Govt. Dues Staff salaries Wages

Government Payments

Employees social security fund subscription 7% per individual Sales tax Electricity, gas and telephone expenses Employees old age benefits subscription 5% per individual Custom duty Vender suppliers are paid on cash basis Foreign suppliers are paid up to a limited level Payments to Suppliers


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Accounts Payable of Service Industries limited

Firstly the production department tell about the demand of the material which they needed

After this the demand is send to the purchase department or model room

According to the demand the purchase order prepared and sends it to the different parties and the parties send the quotation and which party give material on reasonable price that quotation will be accepted.


production

purchase room

quotation

purchase order

party

goods received

receiving rooms

Store

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After the quotation accepted the purchase order is made with name of concerned party

Then general manager sign the purchase order Than the purchase order send to party and party send the

goods according to the purchase order Goods received by receiving department or room and then

they send the goods to related store after making Receive receipt

Then production issued the required material from store

Human recourse department

During internship in HR department I learn about the work of HR department.All work related to human are done in HR department. All employees leave application are approve in human resource department. The process how can approve the leaves in HRIS system.Open HRIS –personal management-leaves-leaves approval-leave ID enter the code –approve by enter their own code –post –approve leave successfully.Hiring planning selection training and development of new employees are done in Hr department. Salaries also approve in HR department. All work related to pay slip are done in HR department.HR manager give the pay slips to employees for salaries. Annual increment of salaries and grades are update in HR department and I learn about that. Employee’s status is update in Hr department by using their data in HRIS system.

Following are the procedure of update the employee status in HRIS.

Open the HRIS software than click on personal management and select employee status enter employee code press the button enter then click on transfer write new employee code then press the button enter and save employee status update successfully.

All data of employees are record in smart tem software in HR department like name address father name reference education T.NO etc.

Dead files mean the employees who died record about those employees are maintaining in that dead files.


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Record about those employees who leave the organization is maintain in HR department leaving mean resigned terminate or Dismiss.

The process how can post the record of leaving employees in HRIS system.

Open the HRIS system select personal management and employee status than enter employee code select leaving and leaving type e.g resigned terminate or dismiss then mention reason and save Record the employee data successfully. After record that data in HRIS it also record in legacy software.

Employee’s code also opens in HR department in HRIS by using the employee’s data.

The work about re-instate the employees are also done in HR department.

Income Tax

Income tax against employees wholesalers retailers dealers and distributors.

0.5% income tax charge If the party is one of them then ( wholesaler ,dealer or distributor )

Purchase goods on credit basis Reduction of sales tax with held as with holding agents 1/5 on

sale tax value of register suppliers. Sale tax to unregister supplier 17% tax with held. Make the payment to the party within immediate 60, 90,120 days Time of payment is starts when sales tax invoice is post 3.5% income tax charge against register suppliers and other then

Suppliers/unregister suppliers deduct income tax 3.5% withheld. Prepared tax challan and deposited in bank at the end of year

(July to June) then service industry made certificate because FBR allows making certificate within 2 months and made the payment.


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If the company registered and dealer in footwear then 1% tax withheld

Services party those parties which give the services to the service industry e.g. stitching party 7% income tax deductive

Transport party this party also gives services related to the transport. When they give bilty then 2% income tax charge

Monthly income statement is made and send to the FBR 1% income tax charge to footwear supplier register and

unregister.

Management Style:

Managers handle an internal environment that is commonly called an ‘organization’. Here they perform actions that are significant to the success of the organizations. These are called ‘managerial functions’ relating to the “desired outcomes of managerial action. Following are the managerial functions of Servis Company.

Planning

They do both long term planning and short term planning to get their corresponding outcome or profit. They forecast their future conditions, opportunities and problems.

Their planning process involves following steps;

Preparation of physibility report

Forecast the demand in market Finalize their investment

Evaluate the sale margin

Feed back


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In their planning they determine their ‘lead time’ that when the project will start and within how much period it will be completed. They set objectives for their selves that are accomplished by directing organizational efforts. They establish sequence and priority of actions to be followed in the attainment of the objectives. They have fixed price for their products. Shoes sizes and designs are discussed in planning.

Organizing

They have centralized organizational structure but quickly pass out their decisions to grass root level. They have fixed employees for a particular job for getting job specialization. They divide the order into small plans and distribute the planning sheet to the different departments. Material date is confirmed before time. They have very strong communication pattern and network. Meeting are occurs on regular basis. Sometimes emergency meetings are called in conflict situation. Mostly their conflicts are occurring in production, planning and purchase departments. These conflicts are resolved in emergency held meetings.

Leading

Servis have very effective leadership which involves managing people and the work through the means of motivation. They MOTIVATE employees.

By annually bonuses these bonuses are provided in the month of April,

Provide security and insurance Promotion

Provide working environment


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Better hygienic conditions Free medical facility

Free education for their Children

Cheap food facility at canteen (20 Rs. per Head)Commission (over time) Arrange Tour

The coordination occurs among the employees and manager by visits. Managers have good ability of command. They issue orders and instructions without arousing any resentment among the subordinates. They are able to secure willing obedience from their subordinates without destroying their initiative and creativity. They have good relationships with labor union. Salaries and bonuses are provided them on the time. There is less chance of strike every conflict is by proper negotiation.

Controlling

There are certain performances standards for evaluating results. There is strong culture of making records and reports which tells about the progress of the company. So, they use these reports for comparing their performance. Corrective actions are taken to regulate operations, remove deficiencies and improve performance. There is a helping department which oversees the activities of all the departments. If any wrong action occurs it take notice and provide help about the issue. There are suggestion boxes for the employee. These suggestions are noticed on weekly basis.

Detail description of the task

Identify our talent.


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Gain the experience from internship.

Give feedback after the completion of internship period.

Summary of the learning :

My internship report is for the purpose of presentation to the internship coordinator to enable him to know my findings during internship.The company is large manufacturing concern with greater market share in footwear and tyres & tubes. This larger company enables me to learn about how accounting is carried out in computerized environment (ERP) oracle .How ERP works when accounting financial aspects of different accounting events is recorded. In start of the report I give introduction to report, history and organization. I also included company aim, objective, and scope of the organization in report to get early understanding.SERVICE INDUSTRIES LTD deals in retail and whole sale of Leather shoes, cycle and motor cycle tyre & tube and Rag division.Two general manager can control the factory.What skills and qualifications you think that you have gained from the internship.The skills of using the software like ERP and HRIS .In this 6 weeks internship I have come to know that how to deal with workers and how to manage paper work. How to handle the employee’s .How to make the salaries sheets of employees. I also learn to work on HRIS and SMART TERM and LEGACY software. SIL has a lot of paper work, which is very critical nature of work in this technological environment.Internship not only increases our knowledge but also play a vital role for having job in any organization. For fresh graduate internship is


Internship report

the only source that is use as a experience for job. It is counted as experience of field work.With the help of internship confidence level increases because we met and work with different managers. In this summary I would like to explain my learning. This larger company enables me to learn about how accounting is carried out in computerized environment ERP.Practical work and knowledge in any organization is compulsory for every student of business rather than only follow the books.The internship increase awareness of new technologies and research.

What kind of responsibilities you have undertaken during the internship period?

Follow the time period. Daily make sign on internee attendance register at the time of enter or left the factory. After the off time again join the work. Do the work with carfully.Arrange the files on employee code wise.

Handle the problems.

Complete the work with full concentration that they give me.

Do not receive any document from employee which I can‘t understand.

Give the feedback report after the completion of internship.

Follow the rule and regulation of the organization.

Manage the time and complete the work.

How do you think the internship will influence your future career plans?


Internship report

We achieve the experience from the internship because fresh graduate have no experience except internship. So we can apply for the job in any organization. Internship is the only source as a experience for the fresh graduate.

How do you think the internship activities that you carried out are correlated with your classroom knowledge?

In classroom we just read the books but in organization we do practical work. In classroom we just read the tax rates but in organization we apply the different rates in different things. I also apply the swot analysis in that organization. Internship is opportunity for me to apply the theories concept skill and knowledge that I learn in the classroom.

During the internship we apply our knowledge in the organization which we attain in the classroom. We practically work on the software.

Conclusions:

Summary:

I have completed my internship in accounts department which is also working in tax department as well as i spend 1 week in production department and 1 week in HR department.In this summary I would like to explain my learning, what I have learned?This larger company enables me to learn about how accounting is carried out in computerized environment ERP. How ERP works when accounting financial aspects of different accounting events is recorded.


Internship report

As well as they develop very costly and lengthy software like Oracle and SmarTerm. This software is used in all the world. This software is also called ERP.The head office of ERP is online. Raw material invoices are recorded in that software.

Prepare sale tax invoices and dispatch them in a sequence to head office.

Communication policies, behaviour of employees, ethics and manners of organization.

Management rules and regulations. Prepare A/P invoices and generates vouchers against it. Prepare, arrange and submit AR invoices to head office. Prepare income tax invoices on different rates like 5%,16%

It enables us to face hard time because many of us struggle for their internship, especially when we go for finding the organization of your interest. Internship provides us chance to create links with professional people. So we should have to avail this chance by developing good relations and not to waste our time at workplace.

The management of Service industry limited gujrat is very cooperative.They assigned me tasks and keep me busy in learning things. They also provided nice guidance and support in difficulties. Dedicated staff is the plus point of company for its success. . Security staff is also very good of the service industry limited gujrat.All department like production department human resource department industrial relation department IT department account and tax department etc perform their duties well and all department are related with each others.


Internship report

Observations:

My observation about the company’s environment, working, system, and staff is as follow:

The security system is very alert and strong in service industry.

They are facilitating their employees very well. They have already done a lot of for their workers.

The coordination between departments is very good.

There is no compromise on price and quality of products.

HR department is doing very well. They have been able to attract pool of skilled labor and retaining it.

They utilizing their workers efficiently to cut down their cost.

There are very strict rules of company for their employees.

Factory’s infrastructure is not attractive, especially the offices and building of the company.

Top management is engaged in organizational change but they don’t have focus on technological factors.

The production ladies deportment has no ladies staff.

SWOT analysis


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Following are the strengths, weaknesses, opportunities and threats which I personally observe in the company.Strengths:

Largest footwear group in Pakistan 60 year’s experience Old employees Accessible to all income segments in countryBest quality and durable shoes for sports and school are provided to

a customer that is the strength of the company because best quality attract the customers.

Brand name like Cheetah, Don Carlos, Duke Good communication system in servis industry. SIL has very good financial position. It generated 84% high cash

from its processes. SIL has many experienced employees in dfferent department. Quality assurance departments are found in all factories. SIL is regularly investing for importing the new machines.

Weaknesses: Need to find out way of build strong equity of brand Less communication between employees and managers. Very few Masters are found in SIL Gujrat. Planning department is not working up to the mark. Highly politician is involved in SIL. Less commitment among the workers has been observed. Correct water cullar are not available in ladies department.


Internship report

Service industry limited gujrat have nothing ladies staff. Not identified the choice of customers.

Opportunities:

Cost Reduction: Organization can reduce the cost by proper utilization of resources.

Fresh Talent: SIL has great opportunities to target the young talent for their new products.

Replacement of infrastructure: SIL has to replace the old infrastructure with new one for best working environment.

Fresh Graduates: They have an opportunity to focus on fresh graduates of University of Gujrat. Attract them with best employment facilities.

Cheap Raw material: Competition is going to make availability of inputs cheaper and sufficient.

Dynamic environment: Changing business environment and marketing channel can provide opportunity to our business.

Diversification: Company has adequate financial resources so it can diversify its business into forward and backward integration.

Threats:

Stiff competition in the market from local and foreign brands Political instability: Political instability effects because of the

quota system the company can be restrict by government to export. Moreover government policies can change because of this instability.


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Competition: Competition is going to increase because of setting up modern units elsewhere.

Technology: Technology can impose a major threat unless it is changed/ modernized.

Changing Trends: Fast changing fashion trends are difficult to adapt.

Recommendations

During the training I have observed several problems and here are some suggestions of my observations. SIL management has strong capability to increase the production rate by reducing the cost of production. It can be achieved by investing more in time span, research studies and reengineering related department structure.

The following results are realized from my evaluation:

SIL should search for new markets. In production ladies department manager can not appreciate the

workers after the completion of task. The behavior of manager with worker is very strict in ladies

department. Salary packages are not very much attractive so these should be

revised. There is lack of master degree holders so this ratio should be

increased. A written test and interview should be conducted for internees

(they must be compensated). Using the internet and E-commerce technology to radically cut

costs the management is reluctant to consider roll of information technology factor in reducing cost.

Different training courses should be arranged for the up lifting and improving the quality of work for employees.


Internship report

There should be a proper accommodation for the vendors and visitors.

There is also a problem of work overload for the employees and it should be control properly so that the employees are motivated.

It was also observed that distribution of work load was not proper. So, the duties and tasks should be rearranged for the staff.

The HR department should arrange the programs for the motivation of employees. The selection of employees should be on merit and not by the references.

MIS system is based on oracle 6.0 version so it should be upgraded as in market oracle 9.0 is available.

MIS system should be as much efficient that manual work can be eliminated.

R&D department in SIL is not very much active so management should have to investigate and invest with high concern.

They provide transportation facility to only female employees I think male should also be provided with conveyance convenience. This will create the easiness for workers and reduce the wastage of time.

References of Report

www.servis.com Information from HR department.

Name Designation

Mr. Gohar Ayub Asst. Tax. Officer Mr. M Asif Tax Officer


Internship report

Mr.M Usman Asst.Account Manager Malik pervaiz Production manager(LD)


Servise Groups of Industries Internship Report

Documents

Transcript of Servise Groups of Industries Internship Report