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Internship report





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Internship report


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Internship report

I am proudly dedicating my report to my beloved parents for all their love & guidance, which grow me
in a shape that I make it up to this point. Moreover, I am dedicating my work to my teacher as well as
the internship advisor, who filled me with courage, commitment and awareness to follow the best
possible route, by his good style and by best possible training.


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First of all, I would like to thank Allah almighty, for giving me the strength and health to do this project
work. Not forgotten to my family for providing everything, such as money, to buy anything that are
related to this project work and their advice, which is the most needed for this project. Internet, books,
computers are my main source, to complete this project. They also supported me and encouraged me to
complete this task.
Then I would like to thank Sir Saleem Nawaz HRM Assistant Manager, for giving me opportunity to
join the SIL and guiding me throughout my internship period. And special thanks to all the staff
members of HRM department and Accounts department without their help and guidance this report
cannot be completed. All of them are very supporting and encouraging.


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Executive Summary:

Six weeks internship, in a well reputed organization, is part of my academic requirement The internship
is to serve the purpose of experience the student with the practical knowledge of the field. And see how
the practical work is done.
I choose Servis industries limited Gujrat for completing my internship program.SIL was established in
1954 and since then, Servis Provides local population very huge level of job opportunities. SIL is
providing job opportunity to 6500 people.
The purpose of this report is to explain my learning during my internship.
In start of the report I give introduction to report, history and organization. I also included company
mission, objective, values and field of activities in report to get early understanding.
During my internship I learned general information about the SIL like about its brands, strategies,
procedures, policies. I do a visit to the factory. I join two departments HRM and ACCOUNTS
department each for 3 weeks and closely learned about the working of both the departments.
In HRM I learned about all the procedures of hiring people. HRM only hire the staff members. I
learned how they select right person for right job.
In Accounts department I learned to use ERP program, which is the backbone of the department. All
work is done through ERP. Account dept deals with the operations include Remittances, A/R, A/P, and
General Ledger, handle Payrolls and control the budget of the organization.
I also have learned to work practically in an organization and also try to develop interpersonal


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Title Page...1
Executive summary...5
Table of Contents..6
Brief Introduction of the SIL ........7
History of Organization ....7
Vision Statement...8
Mission Statement.8
Goals and Objectives.....9
Overview of the Company...10
Management hierarchy.13
Organizational hierarchy chart.15
Boston Consulting group.17
Plan of internship program ..18
Internship policy...21
HRM Department.24
Hierarchy HRM department.25
Function of HRM...
Accounts department....37
Hierarchy of accounts department38
Objective of accounts department....39
SWOT analysis.48


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Servis Industries Limited is one of the leading manufacturing of footwear and motor cycle/
cycle tyres & tubes. It is listed on the stock exchanges of Pakistan and has annual sales is Rs. 6.5
billion. The location of SIL is:

10-km, Muridke- Shiekhupura Road, Muridke

GT Road, Gujarat
Head quarter, Lahore
Exports through Karachi

The company employs more than 7000 people in its facilities located in Gujrat and Muridke and
exports its products primarily to Germany, Italy, France and the UK. With a strong emphasis on product
quality and innovation, SIL has built both domestic and international recognition of companys
The History:
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.
In 1954, they installed a shoe manufacturing plant at industrial area Gulberg, Lahore. This started
production in the same year. The industry started manufacturing various types of shoes. Later
management shifted the factory from Lahore to Gujrat. Service Sales Corporation (Pvt.) Ltd. the
Groups marketing company was established in 1959. Humility, fairness, and respect were the values
close to the heart of these founders and it were these values that led to phenomenal success of the




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Today, the production side of the company has flourished into Service Industries Limited (SIL) which
has world-class shoes, tyres, tubes, and rubber production facilities in Gujrat and Muridke. SIL is also
the leading exporter of footwear. Service Sales Corporation (Pvt.) Ltd. (SSC) is today Pakistans










A humble venture of friends has grown into a Group that makes a difference in lives of millions of
people every day today.
Vision Statement:

To be a market leader providing quality footwear, tire and tube and allied products. To strive for
excellence and global recognition by continuous improvement, innovation, dedication and

Mission Statement:

To be a result oriented and profitable Company by consistently improving market share, quality,
diversity, availability, presentation, reliability and customer acceptance. And to emerge as a

growth oriented concern ensuring optimum return and value addition to its shareholders.
To ensure cost consciousness in decision making and operations, without compromising the
commitment to quality and also to create an efficient resource management and conducive
business environment. Evolving an effective leadership by creating a highly professional and

motivated management team fully equipped to meet any challenge.

To keep abreast with modern technology and designs to optimize production and enhance brand
image to attain international for the companys products and to set up highly ethical business
standards and be a good corporate citizen, contributing towards the development of the national

economy and assisting charitable causes.

To adopt appropriate safety rules and environment friendly policies.


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The ultimate goal of the Service Industries Limited is to deliver the tyres (cycle & motor cycle) and
shoes to the general consumers to their maximum satisfaction. And its goal is being accomplished
through retailing. Thus in the field of consumer marketing, retailing is the front line, the final step and
also the marketing system for producers. It is the retailer who takes the temperature of the consumer
and gather information for future marketing strategies. By retail, we mean all activities and services, at
a reasonable profit for the use of general consumer.



To provide better quality products to consumers with low price

Delivery of quality products to the customer should be on time.
Do the optimum use of energy.
Use more information technology in work and make a system without mistakes.
Enhance the two way communication.
Follow the rules of total quality management on each step.
Training needs of each level of employees should be considered necessary.
To protect the environment.



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Service Industries Limited is the largest s shoe manufacturing enterprise in the country. The govt.
appreciated the efforts of the company, for the first time in 1968 when it awarded the PRESIDENTS
EXPORT TROPHY CLASS I. Since then, the company is the lancets exporter of manufactured articles;
LEATHER, CANVAS SHOES. The company was again awarded the PRIDE OF PERFORMANCE
TROPHY by the PCCI in 1977. In the subsequent years, the company has been awarded numerous
trophies of awards as an acknowledgement of its sheer hard work of dedicated efforts.
At present the company has the shoe manufacturing factories at Gujrat and MURIDKE. There are five
factories operating at Gujrat employing approx. 5000 registered persons and 6500 unregistered persons.
These are:

Leather shoe factory

Cycle tyre & tube Factory
Motorcycle Tyre & tube factory
Rag Division

The factory has highly sophisticated test laboratory manned by qualified and trained personnel. Other
than MCTT & RAG Division own well-equipped laboratories. It is here the further products are
developed and tested thus ensuring the success of the company.
Leather shoe factory is ISO 9002 certified whereas other companies are under process. Each factory
comprises of five hundred to thousand workers depending upon the workloads. The factorys peak
season starts from September to April. During this period, the factory hires extra workers and lays them
off after the period once the production is normal.
SILs Head Office is located in Gulberg Lahore. The entire organizational authority is represented with
the help of Organizational Chart, which is headed by a RESIDENT DIRECTOR.
The shares of the company are quoted on STOCK EXCHANGE in the PAKISTAN.

Servis Group is one of the most respected corporate citizens of the country and has a rich heritage
Today the Group is Pakistan's largest footwear manufacturer and exporter with interests in wholesale
and retail sectors. With a growing portfolio of brands and a nationwide network that touches millions of
Setup in 1958, the Group is the largest footwear manufacturer, retailer, and exporter operating in the
country and has overall sales of more than PKR 12 billion. It currently employs close to 9000 people in
its following companies:

Service Industries Limited (SIL)


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Service Sales Corporation (Pvt.) Ltd. (SSC)

Servaid Pharmacy (Pvt.) Ltd

The visionary leadership and hardworking management team has led SIL to hold this top position in the
business arena. The board comprises:

Mr. Arif Saeed, Chairman

Mr. Shahid Hussain, Chief Executive

Mr. M. Ijaz Butt, Director

Mr. Muhammad Akram, Director

Mr. Hassan Javed, Director

Mr. Shahid Hafeez Kardar, Director

Mr. Riaz Ahmed, Director

Mr. Zahid Hussain, (Rep. of NIT)

Mr. Anis Wahab Zuberi, (Rep. of NIT)

Service Sales Corporation (Pvt.) Ltd. (SSC) is Pakistans premier retailer that has set new record
standards and created new benchmarks in the retail industry. With its world-class retail systems,
ardently dynamic approach to business and highly energetic team, SSC is today heading towards
becoming a regional retail player.

Servaid Pharmacy was formed in 2005 as a commercial organization with a social imperative.
Pakistan is a country where people often have no convenient access to genuine medicine. Pharmacy
retailing is typically done through conventional medical stores having dubious procurement channels
resulting in a considerable supply of fake, expired or inefficiently stored medicine to consumers.
Servaid envisaged a company with the objective of forming Pakistans first national chain of
pharmacies providing 100% genuine medicine to its customers in a convenient and pleasant
Servaid has already become the largest pharmacy chain in the country in less than four-year time.
Currently, it is operating through 31 stores in five different cities providing services to more than

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250,000 valued customers every month. Servaid has a successful experience of operating 24 hour
pharmacies at various hospitals and community locations.
Servaid has a highly valuable resource group of more than 400 employees including highest number of
qualified pharmacists compared to any other retail chain in the country. Servaid is the first pharmacy
chain that has established an in-house training school to continuously train and develop its people.
Servaid is moving forward with aggressive network expansion in five different cities and has already
got a strong network of hospital pharmacies and corporate clients.
Board of Directors:
Mr. Omar Saeed, Chairman
Mr. Osman Khalid Waheed
Mr. Riaz Ahmed
Dr. Arif Rana
Mr. Jawwad Faisal

Management Team:
Mr. Jawwad Faisal - Chief Operating Officer
Mr. Sajjad Hafeez Butt - GM Business Development
Mr. Faran Butt - GM Merchandising
Mr. Noman Faisal - GM HR
Mr. Nadeem Sheikh - Manager Operations
Mr. Shabbir Ahmad - Manager Accounts

Social Responsibility:
Servis believes that Corporate Social Responsibility is more than taking up initiatives: it is about
Servis has been a regular contributor to community welfare, charities, and causes.

Free shoes -- these are routinely provided to foundations, needy individuals, sporting clubs, and
underprivileged areas and neighborhoods.

Sponsorships -- financial support is provided to various social and welfare organizations and
societies nationwide.

Donations -- primarily for deserving institutions, charitable organizations, individuals, and



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Emergencies and Disasters -- taking a lead in addressing these as they emerge. Support has been
provided to earthquake victims and IDPs in recent past.

Sports -- being a leader in sports category with our brand Cheetah regular support is provided to
various sports - from cricket to swimming, tennis, and rugby. Primary recipients in this domain are
colleges, universities, and sports clubs and associations.
Servis was one of the first players in the corporate sector to respond to the IDPs challenge. We made a
commitment to support 1,000 individuals throughout the course of their displacement.

Mr. Ahmad Javed
Mr. Omar Saeed
Board of Directors

Mr. Arif Saeed

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

Group Executive Committee

Mr. Arif Saeed

Mr. Omar Saeed

Mr. Hassan Javed


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Management Team
Footware Division
Mr.jawwad Faisal(chief commercial officer)
Mr. Muhammad Usman Amjad(chief financial officer)
Mr.Ghulam Mohammad(General manager gujrat plant)
Mr.Muhammad Sohail Akhtar Chaudhry(General Manager Sales)
Mr.Hyder Usman Chaudry(Head of Human Resourse)
Management team (Tyre and Tube Division)
Mr.Jawwad Faisal (Chief commercial officer)
Mr.Muhammad usman amjad(chief financial officer)
Mr.Muhammad ejaz(country manager sales and marketing)
Mr.Ghulam ahmad cheema(General Manager)
Mr.Ghazanfar ali(chief technical manager)
Mr.Hyder Usman chaudry(head of human resource)


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Organization hierarchy chart:


Tyre & Tube




GM Mr.Ghulam Muhammad

Ghazanfar Ali




Costing TD






Costing FW
Model Room


Planning FW








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SIL, Pakistans leading footwear brand and retailer, starting its journey as a single retail footwear outlet,
the brand today has a 500+ stores presence in Pakistan, 2000+ dealer-base, and a growing international
footprint in Europe, Middle East, and many other regions of the world.


Servis is proud to be associated with leading international and national footwear brands. The
availability of these brands at our retail stores provides more choice to our customers and we see great


Boston consulting group matrix:


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


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My internship plan is set by HRM Assistant Manager Mr. Saleem Nawaz. I started my

internship at 13-07-2013 and end at 22-08-2013.

Duration: Duration of my internship is 6 weeks. As it is the requirement of our University to complete
6 weeks internship period.
Venue: My venue was to complete 3 weeks in HRM department and 3 weeks in Accounts department.
Accounts department

3 weeks (13july to 07 august)

Human Resource Management Department


3 weeks (08august to22august)

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Internship policy:
Internship is intended to provide students with the opportunity to apply what they are learning in their
academic pursuits to real world situations. It exposes them to the practical side of their theoretical
knowledge base at an organization of their choice under the supervision of a professional, who also
trains and evaluates them. In addition, because they are working with a supervisor as well, they
integrate theory and practice in such a way that effectively contributes towards their academic and
professional growth. Many students discover new career possibilities as a result of completing an
internship program.
During the last couple of years Internship Program at service has received special attention and focus.
The overall concept has evolved from its traditional perspective into a strategic perspective. Service
look forward to this program not only as a learning opportunity for the participants but also a prospect

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for service in its continuous endeavor for talent hunt. It is the process by which service not only
contribute significantly to the development of the best talent in professional and leading
universities/institutes, but it also aims at creating service Ambassadors that spread goodwill of the
company all over the country.
This policy is applicable for service Headquarters as well as all service Regions and business units to
cater the developmental needs of students and graduates of academic institutions across Pakistan.

Internship at service will be offered for the duration of 6-8 weeks. servis Training & Development will
ensure an intern-supportive environment with prior confirmation for availability of seats in various
Regions/Business Units for the prospective internees. Internship will begin with a well-developed 2-3
days orientation program, where interns will be introduced to their areas of interest within service
working environment that are in line with their future aspirations. The orientation program will be
conducted at servis Training & Development Department.
After the orientation program all interns will be placed in various departments of service for the
remaining duration of program with respect to their pre-established domain of learning. All interns will
participate as members of a team in this supervised program that will involve students to work in
business settings.
All selected interns will be offered internship maximum for a period of two months. The internship will
be carried out in three phases as per above schedule.
All applications for internship will be entertained on merit basis with maximum of 100 applicants per
phase. Source of Internship applications will be as follows: Top 15 Students of each discipline recommended by their respective institutions. Selected
universities/institutes will be invited to send their graduating students to servis for internship.


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Students only in their last or 2nd

last semester are asked to send their individual applications with minimum CGPA of 3.0 (or) 75%
aggregate marks.
Bright and deserving candidates referred by Company employees fulfilling the above criteria.
1.One of the minimum qualification criteria shall be i.e. the selected candidate may be a fresh graduate
or he/she must in their second last or last semester of MBA, MCS,MS/MSc:(Engg.), BE/BSc:(Engg),
BBA Honours or equivalent.
2.The graduates/students having CGPA/GPA less than 3.0 or below75% cumulative marks will not be
3. All the applications received as per schedule given above will be processed accordingly on merit
basis. Applications received after the notified date will not be entertained and will be deferred to be
included in next phase.
4 .All the applications received as per schedule given above will be processed
accordingly on merit basis. Applications received after the notified date will not be
entertained and will be deferred to be included in next phase

5. Internships applications should include:

a. Application / Cover letter mentioning area of interest.
b. University recommendation letter.
c. Transcripts of the candidate confirming his/her CGPA/GPA.d.CV or Resume of the candidate.
6. The selected candidate will be communicated date of joining internship tenure, amount of stipend
and names of resource person.
7. The controlling departments must ensure that the projects that are assigned to each internee are
Specific, Measurable, Actionable, Relevant and Time based (SMART)
8. The internship will be offered on a full time basis during office hours. The record of attendance of
internees will be maintained by the controlling unit and communicated to T&D Department at HQs
along with their biweekly performance report.
9. Once the application is approved, the internship approval letters sent to the candidate with a copy to
the resource person and the security department. It includes:
a.Department assigned.


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b.Joining date.
c.Duration of internship
d.Name of resource person.
e.Stipend details.
10.On the joining date the internee will be issued temporary I.D. document mentioning specific
validity dates (returnable after completion of internship period) and will report to his/her resource


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HRM Department

Saleem Nawaz

HRM officier
Amjad Butt


Executive Health
& Safety
Sir Zeshan

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To provide and maintain Human Resources of requisite competency

To meet business execution needs of the company

To ensure that HR policies are harmonized with the Business Objectives

To properly manage employees

To resolve conflicts among employees and provide good working environment

Functions Performed by HRM:


Environment Management System
Health and Safety Management
Attendance Management for Staff
Leave Management for Staff
Handle Insurance Related Issues of Workers

1. Staffing
Staffing (includes recruiting, selecting, hiring and firing of employees) is among the skills that become
more important as the complexity and overall level of performance organization increases
The motto of HRM department is to select right person for right job. HRM only hire staff member of
SIL. The workers are hired by IR department. To hire a person following steps are under taken:
Training and Development
Incentives and Rewards
a) Recruitment


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Recruitment refers to the process of attracting, screening, and selecting qualified people for a job at an
organization or firm.
New employees are hired whenever there are vacant positions.
Then to select the applicants HRM choose different methods.
Methods to select applicants:

Advertisement through print media

Select applicant from the CVs already dropped to HRM

Employee Referrals: to identify potential candidates from their existing employees.

A large pool of CVs is collected. From that pool only six to seven CVs are considered. And they are
selected on the basis of:

Name of Universities
Work experience
Performance of employee (if selected through internal recruitment)

When 6 or 7 CVs are selected then HRM call the applicants for test and interviewing.
b) Testing
Written test is taken from the selected applicants and the marks of the test are considered in selecting
process. In this test, general IQ questions are asked. Half hour is given to complete the test. And the
marks of test are out of 10.
c) Interviewing
Before interviewing a personal data form is filled by the applicants in which information about the
education, experience, family background and other related information is collected.

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Applicants are called an hour before the interview to fill that form and give them the formal
introduction of the organization. After filling the form, the applicants are called one by one for
(c) Interview panel:
The interview in SIL is usually panel interview and it is unstructured. The panel consists of 5 to 6
member usually they are general manager, assistant HRM manager, Factory Manager and the manager
of the department for whose department interviews are arranged. First of all applicants is asked for his
formal introduction. Then following types of questions are asked to the interviewee:

Knowledge based questions (related to work)

Situational based Questions
Questions about previous job
Confusing questions to check the IQ
Questions to check the confidence
Questions about the interests

Each member of the interview panel has Primary Interview Assessment Sheet through which each
member of panel individually assess each interviewee and give them marks. At the end of the interview,
the panel totals the marks of each members sheet. The interviewee with total highest marks in
Interview and Test has more chances to get the job.
In Primary Interview Assessment Sheet following attributes of the candidate is observed and marked:

Computer literacy
Family Background

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d) Selection
The candidate with highest or second highest marks is usually preferred. The interviewer prefers
some attributes which are:

Job experience of 3 to 4 years

Academic Background is strong
High Confidence level
Family Background is strong

The candidate with all the above attributes has more chance of selection.
After Selection
After selection the candidate become the employee of the organization. And each employee has its
personal file. These files are saving as a record of the employee and keep with in HRM department.
Each file and Employee is given by a particular number which is the identity of the Employee. And a
card is also issue to the Employee by which employee is recognized in SIL. 3 letters are issued to the
employee. 1 is given to the security office 2nd is given to the manager of his department and 3rd is
given to the employee itself.
Personal File
In personal file following things are attached:

Metric Certificate
Intermediate Certificate
BS Certificate
Masters Certificate
All other kind of Certificates if any

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Personal Data Form

Primary Assessment Sheet
Letter of Appointment
Joining Report
Nomination form
Probation period evaluation form
Confirmation letter

e) Orientation
After selection the employee is given by two days of orientation. In this period the employee is
introduce to the other members of its department and its work type.
Probation period
The probation period of the employee is 3 to 6 months. It is the testing period of the employee. In this
period the employee is given by the full salary. And he cannot get a leave in his probation period.
During this period employee can quit his job without informing and the organization also can dismiss
the employee without any previous notice. When the probation period is finished the employee
becomes the permanent employee of the organization.
f) Training and Development:
The organization arranges programs for training and development of its employees if necessary. For
training the organization arrange some type of courses related to their work and for development the
organization do the job rotation or job enrichment of the employees.
Incentives and Benefits:
The company provides different kinds of incentives and benefits to its employees. The benefits and
incentives for staff are different to the workers benefits and incentives. The HRM deals with the staff
benefits and incentives. The incentives provided to employees are as follows:

Provident Fund


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Employee contributes 7.5 % of its basic salary to the provident fund. And the employer also contributes
the same amount to that fund. When the employee leaves the job he gets the entire amount. If the
employee is executive then after 7 years the employee can get the provident fund as loan.


Gratuity is the 1 year basic salary without work after leaving the job. Only Executive can get it if they
have completed the 5 years of their job. Otherwise no gratuity is given to them.

COLA (Cost of Living Allowance)

The allowance is extra from basic salary. 600 Rs. is added to the gross salary as the prices fluctuate in
the market so the allowance is given to accommodate.


The employees are granted with 10 casual and 10 sick leaves in a year. But at a time they only get 3
leaves. 14 annual leaves are granted at the end of each year. These leaves are granted with payment. If
the employee takes more than these leaves, pay is deducted at the rate of per day salary.


Company also gives annual bonus to its employees. Usually this bonus is 1.5% of the basic salary and
is given in February.


Company provides accommodation to the bachelor executives. Half of the salary is deducted if an
employee uses this facility. Other employees get the accommodation allowance which is added to their
gross salary.

Other Facilities


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Employees of higher Cadre get the facilities like: Convince, Mobile Charges, AC, Land line bill, Fuel.
These things are included in gross salary.
Salary Increment
After completing 1 whole year of service the employees get the increment in their salaries. It is done in
August each year. The ratio of Increment in the salary depends upon the performance of the employee
and the performance is appraised by the supervisor and the head of department of the employee.
2. Environmental Protection
For protection of environment the company took following steps:

Treatment of the waste water which can be harmful for the environment if discharged untreated.

For this purpose regular water samples are taken and tested.
Boiler gases are also harmful they are also treated before discharge.
Power house gases can be dangerous if substandard machinery or fuel is used. But they use high

standard fuel and best machinery for this purpose. Noise pollution is also produced.
3. Health & Safety
For the health of workers followings steps are under taken:

Medical test of workers: HIV AIDS test, Sugar test, Hepatitis B, C is taken. If a worker if

positive of any disease proper free treatment is given to them through social security.
Blood group of worker is also checked. If case of emergency they can easily get the blood.
For staff medical allowance is included in the gross salary.
The company gives 300 per worker/month to the social security ordinance for the betterment of

workers, whose salary is max 10,000.

For pregnant women and for new mother complete policy is made to provide them as much

relief as possible.
For the sake of employees health, toilets are clean, soap and hand drawers are provided to

Standardized food is provided to the employees at cheap rates.
Sick leaves are given to them.
Burden on ill workers is less.

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For the sake of safety of workers following precautions are undertaken:

Fire Alarms are provided at reachable place.

Sand buckets, fire extinguisher and water pipes are provided at different places for the safety of

Facility of First Aid is provided in case of emergency.
Ambulance is there for emergency situation.
Masks and goggles are provided to the workers, who deal with the dust particles at their work

Gloves are provided to the workers who deal with chemicals which can damage their hands.

4. Attendance Management
Attendance Management is also a function of HRM and is performed in HRM.
Attendance is maintain at two places in interdepartmental registers and centralized register for the
whole staff of the organization. The centralized register is placed on the entrance gate. In
interdepartmental registers and centralized register the attendance is maintain manually.
There are two booths present in SIL for computerized attendance. One is present near the entrance gate.
In these booths computerized machine is present which recognize the finger print of index finger of all
staff members and there ID cards. This is used for computerized attendance.
On fortnight bases all the attendance is computerized. They used the smart term oracle program, to
maintain and upgrade the attendance. Any problem in upgrading attendance is solved on daily basis.
Attendance Management is very important function of the SIL as the salaries of the employees depends
on their attendance.
5. Leave Management


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Leave Management is another important function of SIL. The company granted some holidays to the
employees with payment. But if the employees exceed that limit their salary shall be deducted. There
are 5 working days for employees Monday to Friday.
Leave policy and Procedure
If an employee needs a leave on working day first he has to approve his leave application, before one
day, from the manager of his department and then submit it to the HR/IR department. There is a
particular form for leave which is filled by the employee and signed by the manager. The leaves
granted to the employees by company are:

Casual Leaves

There are 10 casual leaves per year. Employee can off only 3 working days continuously.


For staff members two days are off Saturday and Sunday.

Sick leaves
Employee can get three days sick leave with payment but if they need more they have to show
medical certificate for their illness.

Maternity Leaves

3 months leaves are granted to the pregnant worker with pay who belongs to S.S.O. Otherwise the
company grant only 1 month maternity leaves.

Compensatory Leaves

If an employee works on its weekly holiday he can utilize this holiday in another working 3 days
before or after that day.

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Annual Leaves

14 annual leaves are granted to employees after completing 1 year of job.

Short Leaves

In case of emergency employee can switch off his job for 2 hrs. and this can be done once with in a

Gazzeted Holidays

These are public holidays and announced by Government on particular days like:
5 Feb

Kashmir Day

23 Mar

Pakistan Day

1 May

Workers Day

14 Aug

Independence Day

9 Nov

Iqbal Day

25 Dec

Quaid Day/Christmas

Holidays on all Eid-ul-Fitar Eid-ul-Azha EidMilad-un-Nabi and Meharm-ul-Haram are also

granted to the employees

6. Insurance
In SIL every employee, machinery and building is insured through insurance company. And the
workers are also insured through social security. The company monthly paid for its employees to the
insurance companies. In case of any accident the employees get benefit through that insurance. The
maximum amount is given on the death of the employee in case of accident at work place, by the
insurance company. The amount of insurance is different for different type of loss. The HRM
department handles all the insurance cases.
HRM department is the manager of all the departments. The SIL HRM is handling certain type of
issues successfully

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Hierarchy of Account Department


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Sarfaraz Baig
officer (AP)
Abdul Ghafor

Manager Mr.
Haider Gilani


Account dept.
Mushtaq Baig

Cash Officer
Qasir Javed

(AR) Faisal
Cashier Faisal

Accounts Department

To make financial transactions possible.

To provide the picture of financial condition of the company.

To record every necessary accounts.

To recommend the essential modification regarding financial policies.

To forecast the economic condition of the company under existing circumstances.

Account department of SIL performs lot of functions. Basically they are dealings with many

other departments and supervise their functions which are related to finance. Account department deals

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with purchase department, costing department, statistics department, planning department, receiving
room and store rooms. They check and complete their functions. They get information from all
departments and prepare vouchers, statements and budgets. The main functions performed by Accounts
Department are:
1. Voucher Preparation
2. Voucher posting
3. Preparation of statements
4. Cash disbursement
5. Preparation of monthly trial balance
6. Month end adjustments
7. Cash flow projection on monthly basis
8. Financial changes/payments of loans/rents by Head office Lahore
9. Information transferred to Head office.
10. Handle Tax related issues
11. Deals with A/P, A/R, budget, cash flow modules.

The production department tells its needs of material in detail form of quantity, quality, item number
and time period to the purchase department. All the purchases of the SIL occurred through purchase
department. Purchase department made material estimation sheet in which all details about the material
is mentioned. The purchase department saves all the information in inventory module (ERP system)
and prepare voucher. Then order is given to the supplier through inventory module. The raw material
supplied by the suppliers is received in store receiving room. In store receiving room the material is
checked it should be according to the order otherwise the material is returned to the supplier.
Then the quality of the material is checked this happen in laboratories. There are experts to test
and check the quality. If the lab report is ok then receiving room Chelan form is made and the material
is shifted to the relevant stores. In relevant stores of production the quantity is matched with purchasing
order. And then entries are made in ERP system and supplier invoice is formed.
The purchase voucher is called account payable A/P. The Account department deals with AP. When the
bill is post to the ERP labiality is created towards the company. All the terms and conditions are already

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decided with the suppliers. Then the supplier payment projection statement is made and it is approved
by the Head office at 1st week of every month. Cheque is issued to the suppliers if payment is approved
by the head office.
Similarly Account department also deals with the account receivable A/R. the sales vouchers
which is made when SIL do some sales. Sales cycle starts when the organization receives order from
customer. The customer demand detail is sent to the Costing Department. Costing department then
estimate the total cost expected to be incurring in terms of material, labor and other direct costs.
The estimated material demand is than sent to the relevant procurement managers. They purchase the
material for use in production process. When all necessary material and labor hours are available then
production process is started. Production manager are given targets with defined deadlines. After
production process is completed then finished goods are delivered to the stores. Finished goods
dispatched to customer within the due date. When goods are dispatched to the customer invoice is
generated. The stores dispatch data is integrated with ORDER MANAGEMENT MODULE (OM). OM
records financial data on dispatch basis. This data is then shifted to the accounts department along with
the invoices. Both are verified with each other by Assistant Manager. After verification this record is
considered final Accounts Department. All adjustment to the records is made by accounts dept like
Debit notes and credit notes. All records are verified by Assistant Manager and validated and final
accounting is created by manager accounts.
Invoices are raised against the purchases made by procurement managers for use in production process.
Payroll Head:
Payroll department also work under account department. Payroll department handle all the wages of
workers and salaries of staff members. The SIL has 5000 workers and 550 staff members. The payroll
is given on monthly basis within 7-10 days of preceding month.
1. Wages
The wages of worker is given on per piece and expertise level this is estimated by costing department.
The wages also depends on no. of leaves with in a month. If the leaves of the worker exceed the limit of
leaves granted by factory the salary is deducted. The attendance is uploading on daily basis in
interdepartmental registers.

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The record of wages of each worker is maintained by his production department usually its supervisor.
The production department does all the deduction from wages of worker and creates a wage sheet on
which workers give their thumb prints and the stamp of department is on it. The wage sheet with all the
details of worker payments on it comes to the accounts department. The account department approves
that sheet and gives it to the cash department. All the payments of wages to the workers are on cash
basis. The cash department issues the cash equal to wages of the workers to the payroll department.
They made packets of salary with name of each employee, their code, their department name on it.
Then these packets are taken to the relevant production department and distribute them among workers.
All the workers are provided by a wage slip on which their payment is mentioned issued by their
production department. They show their slip to the person who distributes the wages and receives his
salary. When the worker received the packet he gave his thumb impression on register to verify that he
received his wages. The workers missing at that day show their slip to the cash department on later and
receive their wages.
2. Salaries
Fixed salaries are given to the staff on monthly basis. Their payment is done through checks. The SIL
deposit the salary of all staff members collectively in bank. And provide the bank with list of their
employees name and the amount of salary. On the other hand the checks are issues to the employees.
The employees show their checks to the bank and receive their salary.

Deductions in Payment

Provident fund is deducted on the basis of 7.5% on basic pay.

Social security on the basis of 6% of gross salary to the pay of employees whose salary is

Old age benefit is deducted on 1% basis of gross pay.
Loan is deducted if employee took a loan.
if employee took advance salary it is deducted from preceding salary
Regulatory allowance which is 50% or less due to leaves
If employee is enjoying the facility of accommodation the rent is deducted from it.

Tax deduction

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Income tax is deducted only in the salaries of staff members whose salary exceeds 300000 per

0.5% to 20% of the salary can be deducted as income tax.
The income tax is given to the government. The Government has certain standards for income

tax deduction.
Govt. has 18 slabs on which the rate at which the tax is deduced is fully mentioned.
Income tax is deposited in National bank
The income tax is deposited within 7 days of preceding month.

If the employees are doing overtime the company gives them extra payment. For worker only Sunday is
off, if they work on Sunday it is included in overtime. The working hours of worker are 8 hours. If they
work more than 8 hours per day extra payment on per hour basis is given to them.
For staff members the Saturday Sunday is off if they worker on these days extra payment is given to
Accounts department approved all the overtime bills and made overtime report of its employees.
Payment for overtime is also issued by the accounts department.

Account Payable Head (A/P)

This head records the purchase on credit. The supplier manual receipt with purchase order no. with date
is entered in to system against the amount of purchase. Then invoice is created, if the supplier provides
the material according to the order of SIL. All the tax deductions are occurred through the payment of
the suppliers. The supplier gives sales tax to the Government the value of G.S.T @ 17% and F.E.D @
1%. The company charges with holding tax to the suppliers payment transportation charges 2%
supplies 3.5% and service 6%.
The company already decided some terms and conditions with the suppliers. Usually the company
gives payment to the supplier after 105 days of delivery. To the foreign suppliers the company gives
advance payment. The company has 150 suppliers approximately.
There are three types of invoice create under A/P head:

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Standard-----it is simple invoice

Debit Memo-----when excess unit price is charged by the supplier, more then the decided price

or when the material is not according to the order the entry of invoice in ERP is in debit memo
Prepayment-----in prepayment the payment to the supplier is already done at the spot for record
of payment it is adjusted there.

All the invoices are posted in system and a report is formed. These invoices are posted online the Head
office also checks these invoices and all the cheques are issued by the head office for payment. The
local suppliers take their cheques by own and the amount to other parties is transferred to their accounts
and informed them through mail.
Under the head of A/P following duties are done:

Posting invoices
Freight charges
Form bank reconciliation statements
Tax deductions
General ledger
Bank dealing
Party reconciliation

Account Receivable
This sub module records the accounting finished goods sold on credit. Company sells out different
items like footwear, cycle and auto tyre and tube to different parties. The credit sale is recorded in this
sub module AR.
Head office issue Sale tax invoices to customer. Than AR supervisor check the data and create final
accounting. And same person issue credit notes to customer and after that manager accounts validates
the DN and create final accounting.
Credit notes are issued against excess quantity, excess rate and against rejection. All these types of
credits notes are recorded here.
The customer of SIL is SSC for footwear. The Servis Sales Corporation is a distribution channel for
SIL. All the payments are received by SSC. The only payment which directly received by SIL is


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payment of price fair shop on which b pairs of shoes sell out and the retail store in which only the
employees can buy shoes.
If the customers give payment within 90 days the company gives 2% discount on it this is the policy of
Claim is also handling under A/R head. When company sale out a product and there is some defect in it
the customer return and get replacement of goods. Company sells out that product as b pair to other
customer and fewer prices is charged so the loss gets minimized. No sale tax is charged on scrap sale.

General Ledger
General ledger is used to record internal documents like inter company material transfers, expenses and
head office advices for expenses.
It is also use to generate different statements like customer account statement, supplier statement and
zonal tax authority account statements etc. General Ledger
General ledger records the expenses incurred by head office on behalf of SIL factory. The expenses are
given below:

Export expenses ---- these are forward charges of transportation occurred when the company

exports goods to the other countries.

Markup----these are bank charges
Traveling expense---when company employee travels for company purpose.
Custom duty
Import expenses

Fixed Asset
This sub module records the fixed asset in system. There are different classifications for assets like;

Free hold property

plants and machinery
power plant

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All assets are recorded according in the relevant head according to their nature use.
All depreciable assets are depreciated over lives of the assets. For depreciation different accounting
estimates are used are used mostly different for different class of the assets. Assets schedule can be
prepared from this sub module. Various types of reports can be generated about assets from this sub
module whether value based or category wise.
Usually the payment is occurred through cheques in SIL. But there are some types of payments which
are pay through cash. These are:

Wages to the workers

Provident fund to the employees who resign from the job
Loan to the employees
Travelling bills payment
Fuel payment
Death grantif some relative of worker dies death grant is given
Marriage grant--- if some close relative of worker get married this grant is given.
Canteen bills

The cash received by cash head is:

From canteen on coupon sale

Cash from the sales on fair price shop.
Cash from the sales on retail store

Cash head record all the detail of expenses and income on daily basis, and form a report of cash in
hand. The daily expense should not b more than 100000, but in days of giving wages the expense is in
cores. All the cash is approved by head office.

The SIL deals with 3 banks in Gujrat.

UBL---for payment of bills
AL-HABIB---for salaries given to staff
National Bank---for tax submission to the Government


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Account department is performing its functions successfully, and acting as a backbone for Servis

Following are the strengths, weaknesses, opportunities and threats which I personally observe in the
Largest footwear group in Pakistan 60 years experience
Old employees Accessible to all income segments in country
Best quality and durable shoes for sports and school are provided to a customer that is the strength of
the company because best quality attract the customers.


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Brand name like Cheetah, Don Carlos, Duke
Good communication system in servis industry.
SIL has very good financial position. It generated 84% high cash from its processes.
SIL has many experienced employees in dfferent department.
Quality assurance departments are found in all factories.
SIL is regularly investing for importing the new machines.
Need to find out way of build strong equity of brand
Less communication between employees and managers.
Very few Masters are found in SIL Gujrat.
Planning department is not working up to the mark.
Highly politician is involved in SIL.
Less commitment among the workers has been observed.
Service industry limited gujrat have nothing ladies staff.
Not identified the choice of customers.
Cost Reduction: Organization can reduce the cost by proper utilization of resources.
Fresh Talent: SIL has great opportunities to target the young talent for their new products.
Replacement of infrastructure: SIL has to replace the old infrastructure with new one for best working
Fresh Graduates: They have an opportunity to focus on fresh graduates of University of Gujrat. Attract
them with best employment facilities.

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Cheap Raw material: Competition is going to make availability of inputs cheaper and sufficient.
Dynamic environment: Changing business environment and marketing channel can provide opportunity
to our business.
Diversification: Company has adequate financial resources so it can diversify its business into forward
and backward integration.
Stiff competition in the market from local and foreign brands
Political instability: Political instability effects because of the quota system the company can be restrict
by government to export. Moreover government policies can change because of this instability.
Competition: Competition is going to increase because of setting up modern units elsewhere.
Technology: Technology can impose a major threat unless it is changed/ modernized.
Changing Trends: Fast changing fashion trends are difficult to adapt.


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The company must reduce its operating expenses in order to compete in the
Market, on price basis because operating expenses are controllable factor.
Footwear industry is highly fashion industry; hence SIL must improve the efficiency of the
product development in order to bring new design and style in the market to satisfy the

Servis hum tv awards is a good advertising attempt of servis. servis will have to continue this so

that it will earn good name.

Company must pay a continuous attention to the quality of the product those competitors may

not surpass it.

The company must seek new market segments, as it is operating in the highly potential market

of Pakistan.
Internet is a broad medium so they should also improve their e- business.
They should increase their exports all over the world through participate expo Festivals.

References of Report:

Information from HR department.


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