Service Textile Industry Internship Report

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

Gujrat
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

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succor as well as substantial cooperation during my
critical moments.
__________________________________________________________
__________________________________________________________
TABLE OF CONTENT:
1
2
EXECTIVE SUMMARY
TEXTILE INDUSTRY IN PAKISTAN
3
4
5
6
INTRODUCTION
VISION STATEMENT
MISSION STATEMENT
GROUP MANAGEMENT PROFILE
7
8
PRODUCTION ACCOUNTING &

MANAGEMENT SYSTEM
INSPECTION SYSTEM
ORGANIZATIONAL STRUCTURE
10
SWOT ANALYSIS
11
DETAIL OF SWOT ANALYSIS
12
PEST ANALYSIS
Pg 04
Pg 0507
Pg 08
Pg 08
Pg 09
Pg 0912
Pg 1214
Pg 1415
Pg 1617
Pg 1718
Pg 1823
Pg 24-

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13
MARKETING STRATEGY
14
15
COMPETETIVE STATREGY
PURCHASE ACCOUNTING SYSTEM
16
PROCESS OF YARN PRODUCTION
17
WORK DONE DURING INTERNSHIP
18
LEARNING AS INTERNEE
19
20
RECOMMENDATIONS
BIBLOGRAPHY
25
Pg 2530
Pg 30
Pg 3034
Pg 3437
Pg 3740
Pg 4043
Pg 43
Pg 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

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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.

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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
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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

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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

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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.

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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 standards
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Mission 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
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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 Accountants
REGISTERED OFFICE:
38-Empress Road , Lahore

Telephone: 3630 4561-3, 3636 7862-3
Telefax: (92-42) 3636 7861
Email:info@prime-service.com
MILLS:
G.T road, Gujrat

Telephone: (92-53) 3514065, 3535058
Telefax: (92-53) 3513700
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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 Manghat
ASSITANT MANAGER:
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Mr. Hafiz Gulzar Ahmad
PLANT MANGER:
Mr. Yaqoob
ACCOUNTS INCHARGE:
Mr. Ijaz
PRODUCTION INCHARGE:
Mr. Shafqat
TIME/PAY INCHARGE:
Mr. Shah Mohammad
SECURITY INCHARGE:
Mr. Javid
LABOUR INCHARGE:
Mr. Mudassar
Production Accounting &

Management System:
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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
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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,
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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 prescreening 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
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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.
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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:
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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
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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:
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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
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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:

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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 unproper utilization of resources.

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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
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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 welleducated 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:
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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
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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:
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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 socioeconomic 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
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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 dayby-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.
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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
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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.
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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.
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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
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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
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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 coordinates 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
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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 Mill
When 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
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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 Code
1) Head Office 01-00
2) Administration 02-00
3) Spinning 03-00
4) Services 04-00
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5) Residential Colony 05-00

The Department/Section code
format adopted by our company is
99-99.
Department Section
Main 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
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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
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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 -.
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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-Section
PROCESS 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
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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 , Dropping
CARDING:
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 fly
COMBING:
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
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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; Phnemaphil
AUTOCONING;
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 waste
PACKING:
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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
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Gujrat
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
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Gujrat
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) Amount
Income A/C or receivable A/C (credit) Amount
Account code Bank A/C (debit) Amount
Journal voucher or adjustment

Vouchers:
These types of vouchers are generally
prepared in the following circumstances;
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Purchase on credit
Writing off assets i.e. depreciation store
consumption etc.
Rectification of mistakes or omissions
Now 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 officer
Account code Purchase A/C (debit) Amount
Account payable A/C (credit) Amount
Copy 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)
Amount
Accumulated depreciation A/C (credit) Amount
To account for the raw material
consumption:
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Account code raw material concerned A/C

(debit) amount
Raw material store A/C (credit) amount
To account for store consumption:
Account code store concerned A/C (debit)
amount
Store and spares A/C (credit) amount
To account for store consumption:
Account code store concerned A/C (debit)
amount
Store and spares A/C (cedit) amount
To account for accrued expenses:
Account code expense A/C (debit) amount
Account 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
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Gujrat
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
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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
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Gujrat
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
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Gujrat
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.
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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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