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INTERSHIP REPORT ON
SADAQAT TEXTILE LIMITED

Prepared by:

Name: M. Sufyan

Class: BS. Com

Roll No: 795529

Session: 2019-23

Registration No: 073333

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Acknowledgement
First of all, humble thanks to ALLAH, the sole supreme and sustainer of the universe, for
guiding us towards the straight path and granting us heath, courage and concentration to
complete this work with his blessings. Secondly l would like to express grateful thanks to my
parents and all Department of Sadaqat Textile LTD mangers and employ who guide me and
train me, provide great and outstanding skills, breath of knowledge and counseling assured this
project’s clarity and completeness.

I would like to express my special thanks of gratitude to G.M of Operational Department of

ACOUNT in Head office Sadaqat Textile LTD Mr. Jassim Ayub as well as our Big boss Mr.
Mazhar from HR who gave me the golden opportunity to do this internship. I came to know
about so many new things I am really thankful to Mr. Kaleem Ullah who guide me about
working of department.
Secondly, I would also like to thanks to my leader and tanner Sir Muneer who train me a lot of
things and finalizing this internship within the limited time frame.
And also, thanks to Sir Kashif, Sir Arsalan and Sir Usama who train me guide me and sport me.
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DEDICATION

TO

MY FATHER

&

MY BOSS

Mr. Jassim (Deputy General Manager Account)

Mr. Kaleem Ullah (Senior Manager Account)

Mr. Rizwan (Deputy Manager Account)

Sir Muneer (Officer Account)

They are too much supportive and teach me how to learn a practical life. They always give me
different tasks which bring more knowledge to me and guide me how to accomplish these tasks.
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INTRODUCTION

Organization Name Sadaqat Limited

Year of Foundation Nov,01,1987

Authorized Capital Rs.100,000,000

National Tax Number 68841-3

General Sales Tax Number 040-3520-9003-55

Business Nature Individual Company

Organization/Company Type Sole

Principal Activity Manufacturing

Major Product(s)/Service(s) Weaving, Dyeing, spinning & garments

Bi Product(s)/Service(s) No

Sadaqat limited 2-km, Sahianwala Road ,khurrianwala,

Faisalabad.
Mailing Address

Phone No. 041 111010111

Fax 041 4364240

Website www.sadaqat ltd.com

E-Mail Sadaqat.limited@sadaqatgroup.net

Facebook
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HISTORY

 Sadaqat – Established in 1951

 As a weaving unit under the dynamic leadership of Mr. Mukhtar Ahmed.
 Incorporated as a private limited company in 1987.
 Converted into public limited company in 2008.
 Today Sadaqat is one of the largest home textiles exporter, enjoying excellent reputation
in the international market.
 Sadaqat is servicing large customer base supplying top quality merchandise to leading
group of home textiles industry across the globe.
 Design Innovation, Research and Development and high quality are our bench marks.
 Established in 2008 – Sadaqat Global Limited.
 Established in 2011 – Sleep world International LLC.
 Established in 2017 – Sleep world Australia PTY Limited

GLOBAL VISION

One That Becomes hallmark of success for others.

New technologies and open trade laws have allowed the global market to be better connected,
cohesive and significantly smaller for premier international businesses. At Sadaqat Ltd, we take
these open markets as opportunities towards acquiring a more diverse clientele, and have
positioned ourselves as a truly international company through various measures. To be
responsive to the demands of a global economy, we have invested heavily in our infrastructure
by growing our global presence and improving our logistical operations. We aim in continuing to
strengthen exports from Pakistan by strictly adhering to quality standards for weaving, dyeing,
finishing and all other processes. Furthermore, we strive to raise the benchmark of the quality of
product representing Pakistan in the global textile market by taking stringent measures for
quality assurance.
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MISSION

Company is committed to maintain highest standards of quality by committing indispensable

Resources to meet customers’ expectations. Establishing a benchmark to get recognized as an
industry leader in the dynamic and competitive textile environment.

BUSINESS VALUES

Integrity: In our activities and relationships with all stakeholders by acting honestly and
transparently

Respect: Following ethical principles across the company to promote respect, fairness and
openness.

Innovation: Through process automation and investment in the state-of-the-art technology to

achieve competitive advantage.

Excellence: In high quality products to our customers to exceed expectations and provide good
value for money.

Diversity & Trust: By developing and implementing policies and principles which encourage
diversity and create a culture of trust, confidence and dependability.

Sustainability: By focusing on the economic, social and environmental impacts arising from the
value creation process to create sustainable long-term value for stakeholders.

INTERNATIONAL PRESENCE

PAKISTAN

 Sadaqat Limited – Composit Unit of Home Textiles

 Sadaqat Employees Provident Fund
 Khas Retails Limited
 Well recognized domestic retail brand
 A domestic house of complete home solution
 Provides an exclusive range and women wear

UNITED KINGDOM
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 Sadaqat Global Limited

 Based in Manchester
 Having own show room and warehouse
 Offers marketing, design and distribution services
 Jay Franko UK Ltd

UNITED STATES OF AMERICA

 Sleep World International LLC

 Based in New York
 Having own show room and warehouse
 Offers marketing, design and distribution services

AUSTRALIA

 Sleep World Australia PTY Limited

CHINA

 Sadaqat HK Ltd

Associated Companies

 Viobeta GmbH
 Sadaqat Gulf DWC-LLC
 Status of the Company

Public Limited Unlisted Company (ESC/large scale manufacturing company)

Company Registration (CUIN) & NTN

 CUIN 0016987
 NTN 0688413-0
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ORGANAZATIONAL STRUCTURE:

Hierarchy Chart of the Organization:

Chief Executive Officer

(Mr. Ahsan Kamal)

GM GM GM GM GM GM GM
Banking Quality Processing Technical Finance Knitting Industrial Engineering

Sr. Manager Quality Sr. Manager Sr. Manager Sr. Manager Sr. Manager
assurance Marketing PPC MIS Finishing

Manager Manager Manager Manager Manager Manager MIS

Admin Store Marketing compliance Knitting

Dy. Manager Dy. Manager Dy. Manager

Audit Marketing Powerhouse

AM Costing AM AM Purchase AM Human AM AM Export

Purchase Resource Shipping
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These are department are controlled by Chief Executive Officer (CEO).

 Strategic Planning & Control:

 Finance and Cost control
 Information Technology
 Quality Control & Assurance
 HR/Admin
 Marketing
 Procurement
 Operations-Made Ups
 Operations-Garments
 Compliance

Product making process

Ginning

Cotton ginning is essentially a two-stage mechanical process of removing gin trash (stems, burrs,
soil, and other debris) from cotton bolls and separating the cotton fibers from the seed.

Spinning

Spinning is the process of winding together drawn-out strands of fibers to form a yarn. It is a
major part of the textile industry. Spinning is used in manufacturing various textile fibers. The
different types of spinners used in the textile industry are Ring, Rotor and Air-jet spinners.

Knitting

Knitting is a process of using long needles to interlink or knot a series of loops made by one
continuous thread. Each loop or knot connects to another one, and when enough loops have been
made, the result is a flat piece of material called a textile.

Processing

Stitching (Cut to Pack)

Finishing
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Storage

Transportation

Sale to Customer

PRODUCT INTRODUCTION

HOME TEXTILE:

Home textile products encompass all home furnishing needs and are designed to compete for the
latest trends and fashion vibes. The Home textile products include the following categories:

Filled Bedding:

 Fitted sheet or flat bottom sheet.

 Top sheet.
 Pillowcases.
 Comforter, duvet, quilt, or blanket.
 Mattress pad (optional)
 Decorative linens (optional)
 Decorative pillows (optional)

TOWEL

Although often used for drying off after being in the water, its main purpose is to provide a
surface on which to lay down. They are also worn for privacy while changing clothes in a public
area, and for wiping sand from the body or objects. A bath sheet (or sheet towel) is larger than a
bath towel.

Table linen

The basic function of a tablecloth is to protect the table underneath it from being scratched,
stained, or damaged in some way, but they may also be used for decoration. By placing the
tablecloth on the table in a certain way and by coordinating with other items on the table, a
unique dinner setting can be achieved.
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Curtain:

Curtain, in interior design, decorative fabric commonly hung to regulate the admission of light at
windows and to prevent drafts from door or window openings. Curtains, usually of a heavy
material, arranged to fall straight in ornamental folds are also called draperies. Portieres are
heavy curtains hung in a doorway.

APPAREL

Designing products according to the fashion flow of the target countries have helped the
Company to increase the exports. The garment products include the following categories:

Woven Apparel

These woven are mainly used for shirts, jackets and trousers in menswear, but also for ladies
blouses. These textiles are characterized by a high degree of stability and a smooth and even
surface.

Knitted Apparel

Knit fabric is commonly used in the manufacture of clothing such as T-shirts, sweatshirts, and
leggings. Its stretchiness and softness make it comfortable to wear, and it is often preferred for
casual wear.

LEARNING

During the internship period I have learned many things which cause value
added in my skills.

I learned about reconciliation with vendor, many thing related to ORACAL and
SAP accounting software.

Reconciliation:
During study in I.COM and BS COMMEERCE level I only know about the bank
reconciliation. But after completion of my internship I also know about the
reconciliation with vendor. A bank reconciliation statement is a document
that compares the cash balance on a company’s balance sheet to the
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corresponding amount on its bank statement. Reconciling the two accounts

helps identify whether accounting changes are needed. Bank reconciliations
are completed at regular intervals to ensure that the company’s cash records
are correct. They also help detect fraud and any cash manipulations.

Reconciliation Procedure

 On the bank statement, compare the company’s list of issued checks

and deposits to the checks shown on the statement to identify unclear
checks and deposits in transit.
 Using the cash balance shown on the bank statement, add back any
deposits in transit.
 Deduct any outstanding checks.
 This will provide the adjusted bank cash balance.
 Next, use the company’s ending cash balance, add any interest earned
and notes receivable amount.
 Deduct any bank service fees, penalties, and NSF checks. This will
arrive at the adjusted company cash balance.
 After reconciliation, the adjusted bank balance should match with the
company’s ending adjusted cash balance.

Reconcile Vendor Statements

Vendor payments account for the largest cash outflow in most organizations.
One of the best ways for accounts payable managers to sleep easily at night
is reconciliation of vendor statements. While the benefits are numerous and
discussed below, this task is often overlooked as it can be time consuming
and tedious. An effective process for reconciling vendors must therefore be
used.
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SWOT ANALYSIS:

What is Swot?

SWOT analysis is a strategic planning and strategic management technique use to help an
organization identify Strength, Weaknesses, Opportunities, and Threats related to Business
competition and project planning.

It is sometimes called situational assessment or situational analysis.

These are the Strength Weaknesses, Opportunities and Threats of Sadaqat textile limited.

STRENGTHS

 Focused vision of consistent growth and market leadership.

 State-of-the-art production facilities.
 Advanced Enterprise Resource Planning (ERP) System.
 Strong Financial Position.
 Global presence & well-established distribution network.
 Established relationship with global customers.
 Diversified range of optimal quality products.
 Dedicated, proficient & innovatively contributive work force.
 Perspicacious and astute management.
 In-house power generation capacity.
 Clean energy paralleled with international standards.
 Transparent and unmatched corporate & sustainability reporting.

WEAKNESSES

 Shortage of skilled labor at production facility.

 Labor intensive operations.
 Competitor’s strong distribution network hampering
market share enhancement.
 Strong competition constraining pricing strategies.
 Slow release of textile policies and taxation refunds to
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textile industry.

OPORTUNITIES:

 Access new foreign markets to raise exports.

 Capture market share in new segments (Denim / Knitwear).
 Backward integration within the supply chain.
 Diversification of product range by targeting niche market
 Explore rapidly growing E-Commerce market.
 Low cost financing arrangements by SBP.
 Government support for export-oriented sectors.
 Incentives on import of new machinery.
 CPEC – Infrastructure development / New projects.
 Implementation of cheaper and greener energy source.
 GSP plus status (Duty free access to the European market).
 Significant increase in textile exports of Pakistan.
 Hiring of qualified staff to change business environment.

THREATS
 Fluctuation in exchange and interest rates.
 Significant competition from nimble and agile textile manufactures.
 Rising inflation leading to increase in cost of production.
 Continuous increase in energy cost (WAPDA / RLNG / Diesel).
 Inconsistent government policies for textile sector.
 Imposition of new taxes/duties and withdrawal of incentives to
exporters.

RISK MANAGEMENT POLICY:

The Company believes in managing risk and creating value from
opportunities to remain competitive and ensure sustainable success in
dynamic environment. The purpose of the risk management policy is to
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identify the risks and provide effective controls to mitigate the identified
risks. The Company follows a rigorous approach to risk management and the
Board has overall responsibility for the establishment & oversight of an
effective risk management framework along with developing and monitoring
risk management policy to determine the Company’s level of risk tolerance.
A strong monitoring practice is observed around risk tolerance to ensure that
the Company is operating within the risk appetite.

TYPES OF RISK
Strategic Risk:
Strategic risks arise from the formation of company’s strategic objectives
and business strategy decisions which may impact the execution of
implemented plans.
Commercial Risk:
Commercial risks are associated with the commercial substance of an
organization which may result in reduction of entity’s market share and
reduction of profitability.
Operational Risk:
Operational risks are caused by internal operational and administrative
factors adversely impacting the organization. Financial Risk: Financial risk
generally relates to the liquidity and credit position of the company.
RISK GOVERNANCE
The Board through its committees performs the oversight function and has
delegated the
Responsibility to monitor and control the risks to the management. The
Board members have diversified skills, knowledge, and experience, which
enable them to identify and manage the key risks that are likely to arise.
BOD has also implemented an effective ongoing process to identify & assess
business risk that could threaten the business model, future performance,
solvency or liquidity of the company.
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Risk management committee plays its important role by reviewing and

supervising the risk identification process, risk exposure and risk appetite of
the Company and recommends risk mitigation strategies.
Human resource & remuneration committee focuses on the risks related to
compensation programs and succession planning to ensure availability of
competent resources at all time.
The audit committee monitors the company’s overall risk management,
primarily focusing on financial and regulatory compliance risks and
continuously seeks to refine risk assessment and management process. The
company has a dedicated internal audit function which provides independent
and objective evaluations while reporting directly to the audit committee on
the effectiveness of governance, risk management and control processes.
The board identifies key risks, their tolerance level and their influences on
organization’s value creation in short, medium and long term to achieve
goals that are directly associated with overall performance of the company.
The management has designed risk matrix that highlights the impact,
likelihood and magnitude of each risk along with the formulation of risk
mitigation strategies which is reviewed and updated regularly.
TYPES OF OPPORTUNITY
Market Opportunities:
Exponential growth in population of the world and overall increase in exports
of Pakistan has resulted in increasing demand of home textile and garments
products. This reflects a huge opportunity for the Company and it intends to
capture major market share.
Human Resource Opportunities:
Due to a comparatively lower wage rate and high unemployment,
organizations in Pakistan can access to less costly and readily available
labor.
Technological Opportunities:
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During the recent years, businesses are going digital due to wide availability
of internet connectivity and increasing trend among people towards online
purchases. This is creating opportunity for companies including Sadaqat
Limited to expand its sales through online segment.

FINANCIAL STATEMENTS
Financial Analysis

Sadaqat Limited

Profit and Loss Account

For the year Ended June 30, 2016

2021(Rupees) 2022
(Rupees)

Sales-Net 11,583,772,164 9,196,660,484

Cost of sales (9,422,105,802) (7,740,084,965)

Gross profit 2,161,666,362 1,456,575,519

Operating expenses

Distribution cost (346,038,715) (276,668,675)

Administration expenses (477,221,718) (416,667,011)

Other expenses (49,941,548) (21,495,425)

(873,201,981) (714,831,111)

Profit from operation 1,288,464,381 741,744,408

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Finance cost (458,522,750) (445,381,610)

Other income 2,921,990 2,012,870

Profit before taxation 832,863,620 298,375,668

Taxation (69,698,104) (64,035,405)

Profit for the year 763,165,516 234,340,263

Conclusion:

During the internship period I learned reconcile vendor statement, Oracle

software and SAP software these things are more beneficial for my
professional carrier. Through the reconciliation statement I know about
receivable and payable transaction which performing in business and how to
find the pending balance and also know how to clear it through negotiate
with vendor.
I know the things which are related to Oracle and SAP. Now a days SAP is use
full software which used in many organizations.
So through my internship I trained my job functions ad activities which I
perform in future.
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