Professional Documents
Culture Documents
INTERNSHIP REPORT ON
Servis Industry limited
Internship Report submitted to the Faculty of Management & Administrative Sciences in
Partial Fulfillment of the Requirements for the Degree of Master of Business Administration.
UNIVERSITY OF GUJRAT
Date of Submission
13/09/2013
Name of Program Coordinator ___________________
Signature of Program Coordinator_________________
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Acknowledgement
IN THE NAME OF ALLAH, THE MOST GRACIOUS AND MERCIFUL, THE BENEFICENT
First of all I would like to bend over my head in front of ALMIGHTY ALLAH. It was HE who
direct me in every stage of my life, and who bestow me with capability to accomplish the best
and helped me to conquer every attempt and difficulty in every field of life. Without His help,
we cannot accomplish any objectives in our lives.
Thanks are also due to last Prophet HAZRAT MUHAMMAD (peace be upon him), through
whom Almighty Allah communicated knowledge to mankind and who is forever a torch of
guidance and knowledge for whole humanity.
I extremely thank full to my honorable teachers who helped me to complete my report as it is
compulsory part of the Master in Business Administration because perhaps I would not be
able to write such a report without their help and cooperation.
Especially I am very thankful to the Head of Human Resource department Deputy HR
Manager of Servis Mr. Saleem Nawaz who organized my internship program. I am very
thankful to my supervisors who help me in my learning activities during my internship.
Finally, I am very thankful to my family and my sweet friends for their prayers, love and
encouragement and their faith in my abilities. The completion of my work is the result of their
co-operation and moral support. Without their co-operation and support, a project like this is
difficult at best.
Thanks All!
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Table of contents
S. No
Title
Page No
Executive summary
5&6
8 to 22
2.1
Introduction
8 to 9
2.2
9 to 22
2.2.1
9 to 11
2.2.2
11 & 12
2.2.3
12 to 13
2.2.4
Product/service lines
14 to 17
2.2.5
PESTLE analysis
18 to 20
2.2.6
21 & 22
2.3
Organization structure
23 to 30
2.3.1
23
2.3.2
Number of employees
24
2.3.3
Main offices
24 & 25
2.3.4
26 to 30
2.3.5
2.4
Internee work
2.4.1
32
2.4.2
Details of supervisors
32
2.4.3
Weekly timetables
33 to 38
2.4.4
39 to 44
2.4.5
45 to 51
2.4.6
Summary of learning
52 to 53
2.4.6.
1
2.4.6.
2
2.4.6.
32 to 51
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30
52
52 & 53
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4
3
3.1
54
3.2
54
3.3
SWOT
Recommendations
58
References
59
54 to 57
55 to 57
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EXECUTIVE SUMMARY
The Servis is Pakistan's famous shoes brand. Servis is Pakistans largest footwear
manufacturer and exporter. The Servis is founded by Ch. Nazar Muhammad, Ch.
Muhammad Hussain from Gujrat and Muhammad Saeed from Gujranwala more than 50
years ago. In Lahore they started their business of shoe manufacturing by installing a
manufacturing plant in1954.The Service has its headquarter in Lahore and factories in Gujrat
and Muridke. Now company is involved in making worldwide shoes, tyres, tubes and rubber
production facilities. Service industries have strong culture. With a strong emphasis on
product quality, SIL has built both domestic and international recognition of companys
products. The main purpose of the internship is to gain and knowledge from practical work,
prepare and submit the report in UOG because it is the partial requirement of my degree and
it will give me benefit in my future plans. It has different strengths and weaknesses but also
have threats and opportunities in market. Report findings are as follows. That there are many
problems that industry is facing. Some problems are:
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Posting.
Issuing warning letter.
Issuing dismiss letter.
Making charge sheet.
Company should make its distinctive position in such area of competition by providing more
effective services so that it will get succeeded and earn more profit than their competitors.
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Part-I
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to do internship.
To develop skills and techniques that directly applicable to my career.
Check that how bookish knowledge is implemented in reality.
To learn the practical activities of finance department.
To get some practical exposure for job.
Chairman
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Mr. Arif Saeed, Mr. Omar Saeed, Mr. Ahmad Javed, Mr. M. Ijaz Butt, Mr. Hassan
Javed, Mr. Ahmad Shahid Hussain, Mr. Hamid Hussain, Mr. Riaz Ahmed and Mr.
Manzoor Ahmed
Mr. Arif Saeed, Mr. Omar Saeed and Mr. Hassan Javed
Management Team
Mr. Ghulam Muhammad (GM SIL Gujrat Factory), Mr. Adnan Wasal (GM SIL Muridke
Factory), Mr. Jawwad Faisal (Chief Commercial Officer), Mr. Sohail Chaudhry (GM
Domestic Sales), Mr. Muhammad Usman Amjad (Chief Financial Officer), Mr. Hassan
Ehsan (Head of Exports) and Mr. Hyder Chaudry (Head of Human Resource
The Servis Industries is Public Limited Company Incorporated as a Private Limited Company
in 20th March 1957 under the Companies Act 1913 and converted into Public Limited
Company on 23rd September 1959, having its registered office located at Lahore.
The story of Servis begins with a group of friends - young, energetic, fresh from college
who established Service Industries more than 50 years ago. These young men, named Ch.
Nazar Muhammad (Late), Ch. Muhammad Hussain (Late) both from Gujrat district and Ch.
Muhammad Saeed (Late) from Gujranwala District, started business in 1941 at a small scale
in Lahore. At that time, they were only manufacturing handbags and some other sports
goods. Within years their business flourished remarkably and they were supplying their
products to every corner of India at the time of partition.
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2011
2012
Increased By
Rs.2,958,565
Rs.2,580,580
Local sales
Rs.4,306,539
Rs.4,039,503
Total
Rs.7,265,104
Rs.6,620,083
Export sales
Rs.243,015
Rs.307,472
Local sales
Rs.3,976,112
Rs.5,174,172
Total
Rs.4,219,127
Rs.5,481,644
Export sales
Rs.5
Rs.1,345
Local sales
Rs.64,793
Rs.64,195
Total
Rs.64,798
Rs.65,540
Total sales
Rs.11,549,029 Rs.12,167,267
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5%
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the
mens
and
on
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of a
slippers
look
and
TOZ:-
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TOZ
product
line
contains
variety
of
leader
Long Life
Long Life Load
Cheetah
Cheetah Plus
Hi-Speed
Super Star
Racer
Golden Star
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in
(Bicycle)
(Auto)
Other Products:Following are the some other products being produced at Service Industry Limited Gujrat:
IV Tube
Gas Mask
Auto Parts
Hand Grenade Body
Mine Body
Tank Track Pad
Bogh Wheel
Footwear for Defense Forces
(Surgical)
(Defense)
(Auto)
(Defense)
(Defense)
(Defense)
(Defense)
(Defense)
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environmental
external
economic,
technological,
legal
social,
and
environmental.
Political Factors: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:
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. Some
economic factors that affect the footwear industry are as follows:
Increasing energy and input prices leads to an increase in cost of production that
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Technological Factors:These factors pertain to innovations in technology that may affect the operations of industry.
The technology can cause tremendous in quality and quantity of products and this affect the
market position of company.
Legal Factors:Legal factors relates to law, regulation and legislature that affect the way the industry
operates. Service industry is a legal public limited company. It is fulfilling the entire legal
requirement for becoming the public limited company. It is also satisfying all the legal
requirements of workers e.g. all the workers are associated social security and they are
getting every benefit which is legally required by Government of Pakistan.
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Environmental Factors:Environmental factors relates to ecological and environmental aspects that will affect the
demand for service products and affect their business operations.
2.2.6. Contribution of Organization towards economic development:SIL is contributing a lot of towards economic development. Service industry in Gujrat remove
the unemployment in Gujrat and other cities providing jobs also improve the living standard
of people. It is providing job to 6000 people. Due to increase the revenue of industries the
contribution towards economic development also increases.
Service industries export is its main source of generating revenue and also pay healthy
amount of tax to government every year. It provides internship opportunity to number of
students throughout the session. Service is also contributing to social development.
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2.3. Organizational Structure:The entire organizational authority is represented by the help of Organizational Chart, which
is headed by a Resident Director. The management structure of SIL is as follows:
2.3.1. Organizational Hierarchy Chart:General Manager
Costing
Maintenance
Planning
Commercial
H.R
Factory manager
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MCTT
MC Tire
CTT
MC
BC Tire
BC Tube
Tube
2.3.2. Number of Employees:Company has started the operations with few numbers of employees. Now it has become a
group of industry and accounted in large organizations of Pakistan.
It currently employs close to 9000 people in its following companies:
Service Industries Ltd
Service Sales Corporation (Pvt) Ltd.
Servaid Pharmacy (Pvt) Ltd.
The total numbers of employees related to footwear & tyre division are more than 8000 out of
which more than 5000 are working in Gujrat factory and 3000 are at Muridke factory
remaining at head office.
2.3.3. Main Offices:-
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2.3.4. Introduction of all Departments:Service has divided its departments according to their functions. Each department is
responsible to handle different tasks. It has number of employees being headed by a
departments head, which is mostly a manager. The departments are inter-related to each
other. Thus the performance of one sector affects the activity of others. Managers have the
authority, so they are responsible for group performance. Following is the list of departments
working at Service Industry Ltd Gujrat.
1. Human Resource Department:The HR department plays vital role in the prosperity of organization. In SIL Gujrat the HR
department develops job description, organizational chart, resolve conflicts among
employees and define responsibilities and authorities of employees, who manage, perform
and verify their work accordingly. The HR department is responsible to provide the manpower
to the all other departments and training and development of employees. The department
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Planning.
Upper cutting.
Upper closing.
Assembly.
Lasting.
P.U. and Sole making.
Tyre and Tube Department:-
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Planning.
Motorcycle Tyre Tube (MCTT).
Cycle Tyre Tube (CTT).
4. Accounts Department:Accounts department is responsible to provide the picture financial condition of the company.
One manager along with deputy manager and assistant manager is leading the accounts
department. Double entry book keeping is being used by the company. This department is
divided in to two parts. One part is purely accounts in nature and while other is with wages
and salaries issues. This department is deals with salaries, wages, receipts accounts
receivable, payments accounts payable, sanctioning loans and accounts management. The
wages to workers are paid fortnightly while salaries are paid monthly.
5. Information Technology (IT) Department:IT department of SIL Gujrat is responsible to manage all the activities related to computer
systems and database.IT department is working as the system support for all other
departments it helps them perform their activities efficiently and effectively. There are many
reasons of implementing management information system. This information system helps the
managers in decision making.
6. Costing Department:Costing department performs very important function it allocates the material and their
quantities to be required for the bulk production and prepare cost sheet each article. This
department is further divided into two sections.
Costing footwear.
Costing tyre division.
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This department is responsible for smooth running of assets and maintenance of all the
machinery after a specified time.
10. Technical Support:Chief Technical Manager is the head of this department. All material that includes process of
chemicals is controlled by this department. It includes:
Raw rubber processing.
Main laboratories.
P.V.C
Molding pressing.
The laboratory inspects the incoming material which required lab test that they free from
band chemical and recording their specifications.
There are two laboratories at SIL Gujrat one for shoe division called main laboratory and
other for tyre division.
11. Quality Assurance Department:Deliver the goods to finished goods go downs to avoid end customer complaints and to
maintains companys goodwill. It is duty of quality assurance manager to look after the
claims. The company ensures that quality policy is understood, implemented and maintained
at all levels of organization to guarantee maximum benefits and achievements in shortest
possible time. The Management Review Meetings are held to review the quality system at
defined intervals to ensure its continuing efficiency and effectiveness for satisfying the
requirement of ISO 9001:2000 standards.
12. Security Department:In industry security department is responsible to maintains law and order situation inside the
factory. They are responsible to handle any misconduct and to keep the eye on workers to
stop theft. The security staff is appointed at gates and other important places of factory.
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Part-II
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2.4.3. Weekly Time Table:Following are the schedule or time table of mine at work place, which contains the summary
of my activities and task performed.
Week 1
24 July to 30 July 2013
Human Resource Department
Supervisor: Hafiz Muhammad Arshad
Date
Activities
24th July
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26th July
29th July
th
30 July
Week 2
31 July to 06 August 2013
Human Resource Department
Supervisor: Hafiz Muhammad Arshad
Date
31st July
st
01 August
Activities
I approved leaves and record the data of those employees who leave
the organization for this purpose is used MS Excel.
There were some letters like salary increment, resignation, contractual
agreements and appointment letters for the month of July, I was asked
nd
2 August
5th August
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th
6 August
files manually.
I learnt about entering personal data of new employees in HRIS.
Supervisors Signature:-
Week 3
07 August to 13 August 2013
Human Resource & Accounts Department
Supervisor: Hafiz Muhammad Arshad
Date
7th August
Activities
I have stamped the educational documents of employees and then
attach these documents in the file of General Admin and help Mr.
8th August
9th August
12th August
13th August
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Supervisors Signature:-
Week 4
14 August to 20 August 2013
Accounts Department
Supervisor: Mr. Hassan Taqveem
Date
14th August
15th August
th
16 August
Activities
Independence Day Public holiday.
Check the receipt invoices details whether they are correct or not. Attach
purchase invoices with their vouchers.
Learn how to calculate retail tax amount and then I did practice. I have
learn and then find receipts in system that are missing from the file of
19th August
20th August
month of June
I was assigned by Mr. Sarfraz to calculate tax application on invoice
payment.
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Week 5
21 August to 27 August 2013
Accounts Department
Supervisor: Mr. Hassan Taqveem & & Mr. Usman Zamir
Date
Activities
21st August
22 August
Write details on the file of receipt vouchers for the month of June.
I was absent.
23rd August
nd
27th August
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Week 6
28 August to 03 September 201
Industrial Relation Department
Supervisor: Mr. Arshad Mehmood
Date
28th August
Activities
I was instructed about making ten day notice and second showcase
notice. I filled these notice under the guidance of my supervisor and
th
29 August
th
30 August
2
nd
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Miss. Naila Afzaal student of university of gujrat worked six weeks in Service Industries
Limited (Gujrat) for her internship and she completed all activities and tasks very
successfully and efficiently.
Signature of HR Manager:
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2. Disputes handling:Its main function is settlement and avoidance of disputes and differences between employers
and workers. In case of any dispute, the relevant authorized officer made complaint in the
form of duplicate and send to IR for taking necessary legal actions against the complaint.
3. Settlement of workers file:IR department make an update the file of every worker that may easily be used in favor of
worker while apply for the following benefits:
For issuance of social security medical card.
As a special case of re-employment.
For gaining help from management.
4. Provide benefits to the worker:IR department work for the employees to provide them different benefits. These benefits
include:
Scholarship for the children of workers, so they got education from colleges and
universities.
Medical leaves and treatment.
Marriage grant for those workers whose daughters are getting married.
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Option in HRIS:-
Option in HRIS:-
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Attendance
Manual attendance:In manual attendance record of attendance of employee is maintained manually if there is
problem in time machine.
Attendance View:We can view the attendance record of particular employee by using this option.
Reports
Every kind of reports about employees and departments cab be generated. I used following
reports related options:
Attendance:We can view the attendance logs, both department wise and employee wise. We can also
get daily attendance reports of present and absent employees.
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Detail Description of Activities Performed by Internee in Accounts department:I have performed my activities in accounts department for the purpose completing some work
I used MS Excel and for completing some activities in accounts department I used ORACLE
database.
My activities in accounts department are:
1. Calculate retail tax amount:I was responsible to calculate to calculate retail tax amount on daily sales of service industry.
Then the copies of these sale tax invoices are attached with their summary. One copy is
sending to head office Lahore, one is for tax department, one is for supplier and one is kept
by accounts department.
Option in ORACLE:
AR Super user Transactions Receipt invoices Click on find option Write ATT in
transaction type and then click on tab and select the last option from the list enter Click on
incomplete Line items
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Option in system:-
AP In charge Gujrat (Invoices entry) invoices Press enter Press enter Write details
like P.O number, invoice amount, date etc. Press enter(After pressing enter the system will
give us a voucher number for the invoice) and then write receipt number, match the quantity
with unit price and press space button to select and then f5 Click on lane 2 Click on tax
column and then charge tax Calculate tax Shift f5 Control s All distribution
Control s.
5. Apply tax application on invoice payment:Page 48
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Detail Description of Activities Performed by Internee in IR department:Following are the activities that I performed in IR department:
1. Posting:I post the data of new workers in register. It is process in which data of new workers is
recorded on the register.
First data is record by IR department manually and then this register is send to HR
department to record the information about workers in system. This information include the
name of worker, Father name, Caste, Token number, Address, Date of birth, Date of
appointment, Department, Reference of any factory person and ID card number.
2. Warning letter:It is the simple warning letter that issued to worker so that he did not repeat the same
behavior in future. I was assigned to make these letters.
3. Charge sheet:Page 49
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3.3. SWOT analysis of organization:It is very important for any organization to know
about its strengths, weaknesses, opportunities
and threats to compete in the industry. So, by
the
help
of
environmental
analysis
and
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company.
Having company's own outlets all over the country.
Heavy export of service industry.
Having good relations with its suppliers.
Company has vast experience in shoe manufacturing.
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4. Recommendations:After a thorough analysis of financial performance and operations of Service Industry Limited
Gujrat during internship, I want to draw following suggestions and recommendations for the
industry.
Footwear industry is highly fashioned industry so company should bring innovations in its
products according to new trends and fashions.
The advertisement should be at large scale of Service products, on the famous
channels to greed the people of target market.
The company must reduce its operating expenses in order to compete in the market on
price basis operating expenses are controllable factor.
Company must pay a continuous attention to quality of products so that competitor may
not surpass it.
The company should increase their exports to all over the world through participate in
expo festivals.
The HR department should arrange programs for motivation of employees and the
selection of employees should be on merit not on references.
Prices of Service products are high because now in the market there are China shoes
and other competitor companies, so they need to reduce their prices.
They should have to decentralize the management decision. That will build trust on low
level managers and they will be confident and work with devotion.
The Service shoes should start to sale its product through online, which can improve its
sale as well as its profits. It is also a good image for the customers that the company is
involved in online business and easy to access. Through this way company can also
compete at good scale with its competitors.
Different training courses should be arranged for the uplifting and improving quality of
work for employees.
There should be a monthly magazine of Service products in which the company can give
awareness about the good features of the products of company and new features and
designs.
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