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Service Textile Industry Internship Report

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Service Textile Industry, Gujrat INTERNSHIP REPORT SUBMITTED TO THE UNIVERSITY OF GUJRAT (EVENING CAMPUS) TO FULFILL THE REQUIREMENT OF MBA MBA (3.5YRS) SESSION: 2011-2015 UNIVERSITY OF GUJRAT DEPARTMENT OF BUSINESS ADMINISTRATION 23-08-2013 1
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Service Textile Industry, Gujrat

Service Textile Industry, Gujrat

INTERNSHIP REPORT SUBMITTED TO THEUNIVERSITY OF GUJRAT (EVENING CAMPUS)TO FULFILL THE REQUIREMENT OF MBA

MBA (3.5YRS)SESSION: 2011-2015UNIVERSITY OF GUJRATDEPARTMENT OF BUSINESS ADMINISTRATION23-08-2013

ACKNOWLEDGEMENT

Up and above anything else, all praise to ALMIGHTY ALLAH alone, the Omnipresent and the most Merciful and compassionate. The words are bound, knowledge is limited and time is short to express His dignity. It is one of infinite blessings of Allah that he bestowed me with the potential and ability to contribution towards the deep oceans of knowledge already existing.I pay hum-age to greatest personality of the universe, HOLY PROPHET HAZARAT MUHAMMAD (PBUH) who is forever source and spring of guidance in every sphere of life.At the very outset, I would like to express my hearties and sincerest sense of gratitude to all my worthy teachers of UOG e for their inspiring guidance and constructive criticism.I am highly thankful for the cooperation of Mr. Hafiz Gulzar Ahmad, Mr. Ijaz Sab, Mr. Shah Mohammad Sab of Service Textile Industries (Pvt.) Ltd. I might not be able to complete my internship without their cooperation and kind behavior. I am also gratified to all my sincere fellows who I had ever remembered for their continued encouragement moral support and invaluable succor as well as substantial cooperation during my critical moments.____________________________________________________________________________________________________________________

TABLE OF CONTENT:

1EXECTIVE SUMMARYPg 04

2TEXTILE INDUSTRY IN PAKISTAN Pg 05-07

3INTRODUCTIONPg 08

4VISION STATEMENT Pg 08

5MISSION STATEMENTPg 09

6GROUP MANAGEMENT PROFILE Pg 09-12

7PRODUCTION ACCOUNTING & MANAGEMENT SYSTEMPg 12-14

8INSPECTION SYSTEMPg 14-15

9ORGANIZATIONAL STRUCTUREPg 16-17

10SWOT ANALYSISPg 17-18

11DETAIL OF SWOT ANALYSIS Pg 18-23

12PEST ANALYSISPg 24-25

13MARKETING STRATEGY Pg 25-30

14COMPETETIVE STATREGYPg 30

15PURCHASE ACCOUNTING SYSTEMPg 30-34

16PROCESS OF YARN PRODUCTIONPg 34-37

17WORK DONE DURING INTERNSHIPPg 37-40

18LEARNING AS INTERNEE Pg 40-43

19RECOMMENDATIONSPg 43

20BIBLOGRAPHYPg 44

Executive Summary:

This report is based on the activities performed during the internship at SERVICE Textile Mills Limited. Internship duration was 6 weeks and it provided practical knowledge of working in professional environment. This learning experience is described in detail n the various sections of this report. In the first section, there is some detail about the company. The history and present status of the company is explained. The organization structure and the details of its management along with its location are also discussed. I have also discussed the yarn manufacturing procedure and the important departments of the company. I have discussed some business operations and some strategies as well. The second section provides information about the activities that I performed during the internship. I worked as an internee mainly in Accounts and Marketing department. However, I also spent some time in Purchase Department to gather some information about their working. The third and last section includes the recommendations.Textile Industry in Pakistan:

The subcontinent is the inheritor of one of the richest and oldest textile traditions in the world. Excavations at Mohenjo Daro and Harappa 2500-1500 BC revealed that the inhabitants of the Indus Valley cultivated cotton. Sir John Marshall, the archaeologist has stated that a few minute scraps of cotton were found adhering to the side of a silver vase. Clay and faience spindles whorls indicate that cotton and woolen fibers were spun. A well-equipped dyers workshop was excavated at Mohenjo Daro and the fragment of cloth indicates that woven cotton cloth was dyed with madder root.Independence from the British in 1947 and the division of the Indian subcontinent into Pakistan and India started a new era for textiles production. Pakistan consisted of two entities, east and West Pakistan. The West was the cotton producing area and the East was responsible for jute production. At the time of partition, Pakistan had no industrial base and inherited only one textile mill, the Lyallpur Cotton Mill in Lyallpur [now called Faisalabad]. This mill produced yarn and gray cloth and no printed fabrics.Under the Open General Licensing [OGL] scheme, the business community imported plants and machinery with cash dollars. In 1950, Adamjee Mills was set up in Karachi, Kohinoor in Faisalabad, Colony Textile Mills in Multan, Nishat and Crescent Textile in Faisalabad. These were followed by Gul Ahmed Textile Mills, Al-Karam, Valika, Star and Rashid textile mills.Within a decade the new country of Pakistan was self-sufficient in cotton and began exporting gray cloth and later cotton yarn. Pakistan started exporting printed fabrics in the late 1970s to Africa and by mid 80s was sending printed material to Europe. Pakistans location was ideal, as it lay halfway between the western world and the Far East. Pakistan has a 28 percent share in world export of cotton yarn and a 6 percent share in world export of cotton cloth.It was in the 60s that the power loom took over and by the 70s gray cloth was being exported at throwaway prices. There are about 200,000 power looms operating in Pakistan some of which are backyard operations. Handloom, which formed the backbone of textile goods in the last century, is now almost non-existent, its sales confined to a fast diminishing rural market and a very small niche market.Although Pakistan is the worlds fourth largest cotton growing nation in the world, after the United States, China, and India, its total turnover for export is only $ 5 billion. Textile goods from 60 % of the total exports of the country. The commodities exported are yarn, cloth, tents, and canvas, bags, towels, bed linen, garments, synthetic textiles and other made ups.With a large and expanding textile industry, textile education and training became imperative. The Textile University of Pakistan was established in Karachi to train technical and management professionals. The Textile University awards degrees in Textile Sciences and Textile Management. The National College of Arts in Lahore and the Indus Valley School of Art and Architecture in Karachi are the only two institutions in Pakistan, which award a degree in the discipline of Textile Design. Designers are being absorbed into the industry, bringing about change and vibrancy, with innovations in Print design and weaving.Today there are 450 Spinning mills and 35 composite textile mills. Textile goods from 60 % of the total exports of Pakistan.

Introduction:

SERVIS TEXTILE INDUSTRY has been the pioneer of textile industry after partition of the sub continent in 1960, thus it has became one of the first textile mills to be registered as public limited company.The company sales are comprised of local sales which is almost 100% against advance cash payment. The total turnover of the company during last year was Rs. 1.52 Billions which is expected to cross 3.00Billion mark during the current year.Vision Statement:

To maintain an excellent level of ethical and professional standardsMission Statement:To become a quality manufacturer of textile products

Group Management Profile:

COMPANY INFORMATION:

Board of Directors: Mohammad Hameed.(Chief Executive) Ijaz Hameed Farooq Hameed Ameer Hameed Tariq Hameed Abid Hussain Murtaza Hameed

COMPANY SECRETARY: Usman Khalid

CHIEF FINANCIAL OFFICER: Farooq Hameed

AUDIT COMMITTEE: Abid Husssain(Chairman) Ameer Hameed Murtaza Hameed

BANKERS: Bank Of Punjab National Bank Of Pakistan

AUDITORS: Horwath Hussain Chaudhry & co.Chartered AccountantsREGISTERED OFFICE: 38-Empress Road , LahoreTelephone: 3630 4561-3, 3636 7862-3Telefax: (92-42) 3636 7861Email:[email protected]

MILLS: G.T road, GujratTelephone: (92-53) 3514065, 3535058Telefax: (92-53) 3513700

A brief profile of the main directors of the company which hold majority of the shareholding is given below:

Abid Hussnain:Mr. Abid Hussnain is the Chairman of service Textile Mills Limited. Mohammah Hameed:Mr. Mohammad Hameed is the Chief Executive of SERVICE Textile Mills Limited. Farooq Hameed:Mr. Farooq hameed is CEO and director of Colony Weaving Mills (Pvt.) Limited.

FACTORY INFORMATION:GENERAL MANAGER (G.M): Mr. Arshad ManghatASSITANT MANAGER: Mr. Hafiz Gulzar AhmadPLANT MANGER: Mr. Yaqoob ACCOUNTS INCHARGE: Mr. Ijaz PRODUCTION INCHARGE: Mr. Shafqat TIME/PAY INCHARGE: Mr. Shah MohammadSECURITY INCHARGE: Mr. Javid LABOUR INCHARGE: Mr. Mudassar

Production Accounting & Management System:

SIL production accounting and management system not only ensures consistency in the operations but also helps to manage orders on a micro level. In-house developed software provides great tools to SIL production team for monitoring production processes, production planning, and conducting periodic audits to reduce possible delays and coordination snags along with achieving a greater degree of reliable inter-departmental information exchange.Production Capacity & Capability:With the installed capacity of 32 frame having 15360 spindles, the plant can produce more than 1, 50000 Cotton Meters per month, with a wide variety of fabrics.All looms have a high speed connectivity facility through Local Area Network along with being Web-enabled. SIL customers will be able to monitor looms allocated to their contracts, and also view what articles are being run on what looms and at what efficiency, whereby correlating the delivery snags, if any, on one hand and quality related issues on the other. For this organization customer confidence is the key to success, and providing this transparency to their customers can facilitate the business on the commercial side as well as providing SIL production team to strive for either improving their performance or marinating the quality which is for the satisfaction of the clients.Inspection System:

SERVICE Industries (Pvt.) Limited is the pioneer in the entire Indo-Pak region in deploying the Uster FabriScan in its facility. The FabriScan replaces the traditional manual inspection by a far more consistent and objective data collection. This system is capable of inspecting Fabric production of a 240 loom facility. Deploying this machine in this facility was a well thought-out decision as this system is not subject to fatigue, downtimes, or outside influences. It provides consistent checking the entire quantity of fabric fed through it. There is no negligence factor, no favors to be made, and no rules to be compromised besides providing a big pool of information that is humanly not possible. All faults are UV tagged so that mending operation can be performed (if necessary) at the exact location of the fault.The machine can be programmed to inspect as per the requirements of the customer and those criterion saved for future reference and use. The inspection reports can be made available to client on the web so that pre-screening of their consignment can be done timely, effectively and in-synchronization with their production plan. In order to cater for our direct Dye-House customers, we have the CUT OPTIMIZATION option available. As soon as the inspection is complete, the system performs the optimization process and suggests the best possible way to cut the fabric to get the highest number of pieces of the Optimal Quality.Power Generation & Heat Recovery System:

Service Weaving Mills is fully-contained and self-sufficient facility with its in-house continuous and reliable power generation facility with 100% backup power arrangement. The Power Generation department with its Heat Recover System is designed to generate enough hot water to fire the chilling system for the entire facility, along with producing more than 50% of the steam required for the sizing operation.Products:Yarn:The company is producing 100% cotton yarn. It has 32 frames containing 15360 spindles. This textile industry produces 128 packs daily.

Organizational Structure:

The concept of an organization chart shows what positions exist, how they are grouped and who reports to whom.The organizational structure should be designed to provide both vertical and horizontal information flow as necessary to accomplish the organizational overall goals. If the structure doesnt fit the information requirements of the organization, people will have either too little information or will spent time on processing information that is not vital to their tasks, thus reducing effectiveness. SWOT ANALYSIS:

STRENGHT: Strong Security System High quality product Latest mechanized machinery. Tremendous market positioning Highly qualified and skilled management Highly Motivated Workforce Adequate financial resources Competitive advantage Own power generation plant

WEAKNESS: High cost of production Centralized decision making Less promotional activities

OPPERTUNITIES: Industry can expand product lines Industry can capture new market segments around the world Industry can reduce the cost by proper utilization of resources Industry can hire more well-educated and experienced person

THREATS: New Entry of competitors Buyer needs demands changes Political instability Change of government policies Globally Economic instability

DETAIL OF SWOT ANALYSIS:STRENGHT: Strong Security System:STIL has a greater security system. There are different hidden security cameras which capture all the moments.

High quality product:STIL is using advance technology like they have modern machinery by which the quality of product produced is very high. Latest mechanized machinery:They are using modern looms which they have purchased from Japan, Germany and France. And by using that latest machinery the productivity of the employees are very high. Tremendous market positioning: STIL is one of the Pioneer Textile Group in the Pakistan so it has got the position in the mind of its customer. And being an old textile company people are loyal with it. SIL has a better position in the mind of its customers. Highly qualified and skilled management:The management of STIL is skilled they have hired the foreign graduate people in their management and also experienced people from all over the country.

Highly Motivated Workforce:They are providing better pay to their employees and also bonus to them which motivate the workforce and they are doing well at work setting. Apart from that they are giving their employees facilities of Convenience like personal car along with fuel provided by the company too, which is a big deal for motivating the employees. Adequate financial resources: The owners of STIL are one of the richest persons of the Pakistan and they have more plant and investment in other industries like Sugar Mills, and Share Market. They have adequate financial resources to meet their requirements. Competitive advantages:Because it is an old textile originating from 1960s and it has still kept its position in the textile market on all competitors nationwide, which is its competitive advantage. Own Power Generation Plant:They have own power generation plant and STIL is the pioneer in the private organization who start the power generation. WEAKNESS: High cost of production:The production cost is high because of un-proper utilization of resources. Centralized decision making:The decisions are made by the upper management which is weakness of the STIL because they have not any proper idea about the prevailing situation and their decision can be un-fruitful for the company. Less promotional activities:The advertising and promotional cost of the STIL is very low it can take advantage for more turn outs.

OPPERTUNITIES: Organization can expand Product Lines:Currently the STIL is not dealing in knitwear they can expand their product line by producing knitwear. They have plants and the extra cost for the production will be low for STIL. They also have better market repute. Organization can reduce the cost by proper utilization of resources:If the cost of different matters which are not been utilized properly, is controlled by the STIL management they can produce more at less costs. It has to develop a further systematic process for controlling and managing resources. Organization can hire more well-educated and experienced person:They can take advantages by hiring more skilled people and they should hire young, fresh and energetic staff for their betterment. Because being human, you always have the room for betterment in any aspect.

THREATS: Buyer needs demands changes:Because of the research & development the design and the product of STIL is just satisfactory as compared to competitors in the global environment and they are not fulfilling the demand of customers. Political instability:Political instability effects the STIL because of the quota system, Government can restrict the Company to export. Changed of government policies:Government policies are changing day by day so it is always a threat for not only STIL but for any company to survive in such an environment. Globally Economic instability: Because of the economic instability the STIL and the Dumping system which is rising on daily basis in the world can create many problems for the company and any uncertainty in the world like 9/11 may also affect its overall exports.

PEST ANALYSIS:Political Instability:The political situation of Pakistan is not satisfactory. Due to the rapid change in the Government every government sets its own new trade policies. Govt. should apply sustainable policies for the beneficial of the exporters as well as the investors.Economic situation: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.Social situation:The change in the lifestyle of the people affects the growing demand of the STIL products. The change in the lifestyle and needs in different demographics also affect the demand of the customers.Technological factor:Technological advancement in all the sectors of the country has changed the entire socio-economic environment. Especially in the textile sector there is a lot of technological development.STILs excellent computerized machines and devices have made extension in its present setup of well advanced technology imported from Japan, Germany and France.

MARKETING STRATEGY:

STIL is a group starting from 1960s which means that it is an old and pioneers of Textile industry in Pakistan. On its purchase side as I have worked for a whole week in Yarn Procurement department of the Group, which is a small branch of marketing department. I found their business to be such a vast that they ordered their raw material on telephones, they made contracts with the new companies and those companies having already contracts had no need to made. The main which were daily paid were mainly to the ICI for polyester and then to companies like Nishat, Sitara Textiles and many more companies and groups like that. Their fiber is very famous not only nationally but internationally as well.The past year has been tough for the textile industry as competition is increasing steadily and margin of profit is becoming smaller day-by-day. Our competitors from Asia have come up in a big way with lower prices resulting from lower overhead, cheaper and better raw materials and machinery. Countries like China, Indonesia, India and Bangladesh played an active role in the fabric market. Improvement in quality and production capability was the main area of concentration. Market for Yarns and Grey fabrics was diversified to increase the customer base and reduce dependency on the Far East. In this effort business with Malaysia, Korea, Taiwan, UK and South America was initiated in case of Yarns. In case of Grey Fabric market business was initiated in South Africa, North America, Japan, Italy, France, and Sri Lanka etc. Product range was also increased to cater to the differing needs of the buyers. Fancy and special items like Dobby Designs, Bedford Cords, and Caviar Twills and stretch fabrics were developed which are being sold at premium prices. STIL has constantly updated our machinery, replacing old machines with new ones upgrading the existing set-up, leading to better efficiencies and quality products.Leaving behind the traditional way of doing business and in our journey towards excellent it has consistently expanded its buyer base and explored the different markets around the world.Keeping in view demand of the World market, STIL pursued its strategy of value addition and reducing the dependency on Grey Fabrics and Grey Yarn. Having the foresight to assess that in coming years value addition will be the thing of the future, STIL worked towards the achievement of its goal of future increasing its capability in value addition.The export of processed fabric and made-Ups has shown market improvement as compared to last year.It has placed us successfully in the middle to upper end of the market. Our strength in Europe is the curtain division. This included yarn dyed dobbies, engineered confections, different finishes and embellished products. The plan is to continue with this winning strategy and at the same time we are trying to find new clients in the high end. We are also exploring business opportunities in countries like Spain and France where STIL has very little business at the moment.STIL is in the process of updating its machinery to cater the needs of the wider width fabric requirement for USA bedding business. CTML is also taking up the social accountability issues very seriously, which are so dear to the American consumers. A lot of big brand US companies have visited us and are discussing the possibilities of a joint venture. The opportunities are limitless, we have to review and analyze them very thoroughly to associate with the right people in the long run. In shorter term we are building a small amount of quota, which will give us recognition as a bedding supplier. On top STIL has developed more direct and closer relationship with its end customers. Oceanic has been our most lucrative and mature marker. In business terms it is our cash cow market.Primarily due to being a non-quota market it had no real limitations in this market. Despite economic problems in that region, it has maintained our sales figures in the year under review. This market is a good design source for other markets, which is helping us to maintain our print volumes.Middle East market is composed of South Africa and the new emerging markets like the UAE, Egypt, Saudi Arabia, and Jordan etc.STIL has dedicated new staff with fresh energy for the emerging market.They have successfully broken the ground and we have very strong faith that these markets will give us good volumes in the near future. We are also targeting printed apparel business for the first time. The latest addition is the most ambitious Apparel Dyeing plant setup in Raiwind Mill, which has started its production. The effectiveness and productivity of this plant will be further enhanced, as STIL moves towards becoming a more vertically integrated organization.STIL has increasing its profitability by working efficiently, procuring better raw material and most importantly kept a very close association with its customers. It visits its business partners frequently and provides them with the best service possible. All of the above mentioned points led to strengthened relationship with its business partners making it very difficult for its competition to penetrate into its market share.STIL has provided its staff with better working environment and facilities, which enhances its efficiency and output.At STIL, it is prospering due to its professional commitment towards excellence and giving the best results at all times and against all odds. Its marketing and production team co-ordinates all the time and its focus remains on maintaining its position as the market leader in the textile sector of Pakistan.Competitive Strategy:

As for as SERVICE is concerned its own name is its competitive advantage. Being an old group it has its own name in the field of Textile as well as sugar. As I have told in the above segment that it has business of Methane gas in Europe it is its competitive advantage. As dealing in one different side gives you edge over competitors in other field.Furthermore, its financial assets are also an edge for the group. As being late in paying any party makes future problems which result in delivery of any product to be late and resulting in bad image of the company.PURCHASE ACCOUNTING SYSTEM:Purchase Procedure for MillWhen a Floor Shop in-charge (Foreman on the maintenance and Head Jobber on the Production side) needs to purchase one or more items to facilitate his sphere of work, he will fill out a PDN. A copy of PDN used in our company appears in Appendix 999. The PDN has three leafs. First copy is for the Purchase Department, second for the Store at Mill, and third for the Department originating the demand. A good quality Carbon Paper should be used so that even the last copy is legible.At the initial stage there are six columns that are filled by the authorized staff of the concerned Department/Section. Those six columns being Department, Sr. #, Item Code, Description, UOM, and Quantity Demanded.The company is divided in to five Consumption Departments. This division is done in order to simplify identification of consumption patterns, allocation and analysis of wages & salaries, and convenience in Budgeting. The Departments namely are:Sr. # Departments Code1) Head Office 01-002) Administration 02-003) Spinning 03-004) Services 04-005) Residential Colony 05-00The Department/Section code format adopted by our company is 99-99.Department SectionMain Departments always have 00 in place of section designator. For example, 02-02 signifies that the Department is Administration and the Section is Time Office. However, when we want to refer to the Administration Department the code used will be 02-00, meaning that the code relates to a Main Department.A Store Item Code List (SICL) sorted on Item Code as well as Description also containing the Unit of Measure (UOM) of each item in front of the Description is supplied to the Store In-charge, Manager (P&A), Electric Engineer, Mills Manager at the Mill, and Purchase Officer at the HOL. New Items added to Store Inventory (SI) from time to time will be added manually to the list by those who have been issued the SICL. At the beginning of every Quarter a new SICL be issued to all concerned.PDN No.: This is a sequentially controlled five digit distinct number allocated to each PDN document.Starting with 00001 to the first PDN of the financial year up to 99999 during that financial year.PDN numbers is controlled by the Store In charge in the PDN Number Control Register. If HOL issues a PDN, the Purchase Officer will ask the Store In charge to allocate his demand a PDN Number. Next number in sequence will be allocated which will be written on the PDN by the Purchase Officer. The Store In charge will make a note of this that the PDN was made by the HOL staff.Department: The Section that makes the PDN fills-in its complete code. If Ring Maintenance is filling the form, it will enter the code 03-10 signifying that Sub-Section Ring Maintenance of Spinning Department is demanding what is endorsed in the PDN. The Sub-Sections description will be written in front of the blank space provided for description. The Main Departments name will not be mentioned in this space.Sr. No.: The first column to be filled in a PDN will be Serial Number that appears in an abbreviated form (Sr. No.). Under this head, a whole-number in a sequential order will be filled-in for keeping a count of item demanded in a particular PDN. It will always start from 1 and go up to a maximum of 9, as there is a provision of only 9 rows in a PDN for entry of items.Item Code: For various reasons including statistical analysis and MIS the Item Code has been broken into three numeric parts, each part separated by a dash -.The Item Code adopted in our organization is in the format 99-99-999. Store Code combines with the Item Code to form the ITEM CODE.99-99-999 , Store Section Item Number , Store Sub-SectionPROCESS OF YARN PRODUCTON:

Production manager services the daily production schedules and try to work according to the demand to schedule. There are many steps involved in production of the yarn.

BLOW ROOM:The first step is that the raw cotton is sent to Blow room for the quality of the cotton. Then it is sent to the Lab for quality check. Here basic quality and other contents are checked in proper form. If one kg cotton is put into this room only 600 grams cotton goes into further production process and rest goes in wastes. Here following are wastes excluded, B/R Gutter , DroppingCARDING:In this step the cotton is carded. The production manager checks the cotton and it comes in the drums type containers. These drums rotate and cotton comes out in specific form called as pones. Here about 5% cotton goes in the shape of waste. Waste extracts from this process are called by; Card flyCOMBING:In this step the cotton goes for combing. Combing is a process to comb and wax the cotton for softness purpose. Following wastes are excluded from cotton in this process; Short Fiber , Comber Noel

SIMPLEX:After the attaining of Cotton from Card and Comb processes, which is also weak this is further passed back to blow room process called Roving and then cotton is sent to Ring process.RING:In this step small pones are developed for further process and wastes are made out named; PhnemaphilAUTOCONING;In this step the manager in specific intervals checks the quality of carded pones from which yarn is produced in shape of cones by passing through machines for this purpose. Here also some wastes are extract called; Oily hard waste , Hard wastePACKING:Cones manufactured in proceeding step are now kept in moisturize room for absorbing required moisture. Cones are packed into bags or cartoon according to customer requirements.

PURCHASE DEPARTMENT:The purchase department makes all purchases. Every demand from different departments for different items is forwarded to store and from here it is forwarded to purchase department if needed to purchase. It has a main store in factory.

WORK DONE DURING INTERNSHIP:

During my internship, I worked in the following departments. Accounts Marketing Account department

In account department, I managed to understand the flow of transaction, preparation of vouchers and ledger posting.Preparation of vouchers

In account department under the supervision of concerned officers, I came to know different type of vouchers being prepared and their process of preparation. Vouchers are written evidence of any business transaction. The different type of vouchers being prepared by the account department of STIL is as under, Cash payment vouchers Cash receipts vouchers Journal voucher or adjustment vouchers

Now I will discuss these vouchers one by one: Cash Payment Vouchers:Being a public limited company cash payment vouchers are used for recording the expense of less than five thousand. These types of vouchers are prepared when cash payments are made against small expenses i.e. repair, entertainment etc. in order to record the expenses following entry is passed: Account code name of expense (debit) Amount Cash account (credit) Amount Evidence of expense is attached with the cash payment vouchers. Cash Receipt Vouchers:These types of vouchers are prepared when the cashier on behalf of the STIL is receiving cash. However, these types of vouchers are small in quantity because majority of transactions are done by bank. On receipt of cash, cashier prepared the cash received slip. Account officer prepares voucher on the basis of cash receipt prepared by the cashier. In order to book the transaction the following entry is passed in the books.Account code cash account (debit) AmountIncome A/C or receivable A/C (credit) AmountAccount code Bank A/C (debit) Amount Journal voucher or adjustment Vouchers:These types of vouchers are generally prepared in the following circumstances; Purchase on credit Writing off assets i.e. depreciation store consumption etc. Rectification of mistakes or omissionsNow I discuss them one by one Purchase on credit:Generally raw material, stores and spares are purchased on credit. In order to account them for the journal voucher are prepared by the concerned account officerAccount code Purchase A/C (debit) AmountAccount payable A/C (credit) AmountCopy of the invoices is attached with vouchers; Writing off Assets:These journal vouchers are prepared in order to change the assets to expense for the preparation of monthly accounts. To account for depreciation of fixed assets:Account code Depreciation A/C (debit) AmountAccumulated depreciation A/C (credit) Amount To account for the raw material consumption:Account code raw material concerned A/C (debit) amountRaw material store A/C (credit) amount To account for store consumption:Account code store concerned A/C (debit) amountStore and spares A/C (credit) amount To account for store consumption:Account code store concerned A/C (debit) amountStore and spares A/C (cedit) amount To account for accrued expenses:Account code expense A/C (debit) amountAccount payable A/C (credit) amount Rectification of mistakes or omissions:In additional to above referred kinds journal voucher is also passed to rectify the mistakes made in voucher preparation or posting.Learning as an Internee:Duties:As I have told above that I had prepared vouchers of different types. Then I used to take vouchers of Mr. Ijaz , Mr. Shafqat. copied cheques whose payments were to be made on that day. Then I brought a few times Invoices for sales tax from marketing department. Maintained record of filing with Mr. Shafqat. Then in Yarn Procurement I made worksheets for the parties who do not have tax exemption certificate and their tax has to be deducted. Next in purchase department, I had only worked for filing their GRNs and maintaining them in a serial manner. I have attended calls for a person not seat or else.Accomplishments:As an Internee I have done all the works diligently which I have mentioned above. Instead I had done other works as well which a person on the job never performs, like someone asks me to take vouchers from Audit like I am his/her Assistant I had done that and never said no. As I have seen those employees which went to Audit and the other asked to bring my vouchers as well and the person says no I have my own work you should better go yourself. That is the thing which I wanted to share in this regard.New Knowledge Acquired:One thing regarding new knowledge is what I have shared in Accomplishments. Next one important thing regarding knowledge acquired is that what you are studying is not related to the job duties you are doing are in future you have to do honestly. You have to understand that work from start, in case of an employee leaving a company and joining other he also will have to understand the work in new company. I have got a lot of sense regarding working in an organization where everyone is working out for cutting your roots. How to work in a conservative environment! How to behave in any situation! How to negotiate with any person on job! Problems Encountered: Well I dont have to face as many problems as I will have to face when I will go on job. First few days were hard but I cannot say there was any problem. Employees there were very cooperative and they asked me to ask as many times about a thing till you are not cleared about that. They guided me on every issue and asked me as/like a big brother to learn as much as you can. I am really thankful to all of them.Impact of Experience on my Career:This experience definitely effects my career positively. As I would not have been come to know about the atmosphere of any organization, this experience has told me a lot about environment of organization and behavior of different type of people. All of this edge goes to my Institutes good understanding about students future.RECOMMENDATIONS: The first and most recommendation is to eliminate one man show prevailing in the company There must be a proper system for training of employees and supervisors. Importance should be given to employees turnover. Different training courses should be arranged for the up lifting and improving the quality of work for employees. There is also a problem of work overload for the employees and it should be control properly so that the employees are motivated. As I have seen employees working till 8 PM. And I have come to know that sometimes they work till 1 AM late night without any incentive. Employees should be paid extra for the work which they do after working hours.

BIBLOGRAPHY:

Sourcesfrom where I collected the information.Mr. Gulzar Ahamd, assistant manager.Mr. Shah Muhammad, time & pay incharge.Mr. Ijaz, accounts officer.Mr. Yaqoob, plant manager.____________________________________________________________________________________________

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