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INTERNSHIP REPORT ON SADAQAT LIMITED

SUBMITTED BY

MUHAMMAD UMAR HAYYAT

GCUF ,FAISALABAD

SUBMITTED TO

DR. M. SAJID
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Report Contents

Sr# Contents Page#

1 History—Introduction 3

2 International Presence 3-4

3 Hierarchy--Organizational Chart 5-7

4 Vision and Mission Statement 8

5 Global Vision 8

6 Business Philosophy 9

7 Departments Function 10-13

8 Job Description 14-15

9 Financial Analysis 16-21

10 SWOT Analysis 22-27

11 PEST Analysis 28-29

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History:

Half a century ago, a textile trading family known as the Sadaqat family started their home
textile business in Chiniot, a neighboring city to Pakistan’s textile hub Faisalabad. The newly
established business was based on the care values of honesty and quality. Visionary footsteps,
honesty and diligence have led the Sadaqat legacy to thrive and expand vertically, while still
maintaining its reigning position in the home textile industry of Pakistan.

Introduction:

Over the year, Sadaqat limited has grown due to the strong leadership and management by a
team of motivated and qualified directors who energize and synergize the strength of more than
4000 employees at a well-equipped and state of the art manufacturing facility. Another key
strength of the company is its product diversification and highly automated manufacturing
equipment. We source our raw material both globally and locally, ensuring our products are of
the highest quality standards whilst remaining competitively priced. Regular overseas travel
ensures consistent product research and development and offer latest trend updates. Our design
centers are equipped with CAD technology to offer innovative and fashionable product rangers.
At Sadaqat Limited, we combine the skill and workmanship of our culture with the globally
recognized best practices, and deliver products of exceptional quality to all our local and
international clients.

International Presence:

Established in 1951 – Sadaqat Limited.

Started at weaving unit under the dynamic leadership of Mr. Mukhtar Ahmad

Incorporated as a private limited company in 1987

Converted into public limited company in 2008

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Today Sadaqat is one of the largest home textiles exporters, 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 global. Design, Innovation, Research and

Development and high quality are our bench.

-Established in 2008 – Sadaqat Global Limited.

-Established in 2011 – Sleepworld international LLC.

-Established in 2017 – Sleepworld Australia PTY Limited.

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Hierarchy:

SADAQAT LIMITED
ORGANIZATIONAL CHART

Chairman

CEO

Director Technical
Director Commercial

GM Chief GM Procurement
GM HR Processing Engineer

DGM (A
& C)

Sr. Mgr
LAB & QA

Manager Mgr Mgr Managers Managers Managers Manager

HR Adm Com. Processing Engineering purchase import
.
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SADAQAT LIIMITED
ORGANIZATIONAL CHART

Chairman

CEO

Director Operation Director Marketing

GM Sewing-2

DGM IT DGM DGM

Sewing-2 Sewing-3

Sr. Managers Sr. Managers

QC & QA Marketing

Mgrs Prod/PPC Mgrs Managers

Prod/PPC Marketing
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SADAQAT LIMITED
ORGANZATIONAL CHART

Chairman

CEO

CFO/Director Director
Strategic Planning Export

GM GM’s F
GM
Audit &A
operatio
n

DGM (CPC)

Sr. Mgr I.Tax

Mgr Mgrs Mgr Manager Manager Mgrs

Audit F&A/Inv/Str (CPC) Export Logistics IE/Com/PD
Doc
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Vision and Mission Statement

Vision of Company:

One that becomes standard for other.

Mission of Company:

Our mission is to satisfy the customers by exceeding their expectation in term

of quality, services and commitment.

By surpassing industry standards, we aim to be recognized as the benchmark

to which our competitors aspire.

Global Vision:

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
responsible 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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Business Philosophy:

Sadaqat Ltd understands the importance of brands and maintaining them to the highest standards.
We support and supply to some of the biggest brands in industry locally as well as
internationally, and we also produce several luxury lines of our own. Brand value, if properly
inculcated, can lead to exponential returns for business and perseverance to make our brand
strength. We strive to enhance our brand equity by ensuring that all needs and specifications of
our clients are met in most convenient and hassle-free environment with strict adherence to
quality standards.

Employee Philosophy:

The strength of our company comes from the quality of the people who work in it. Our working
motto is ‘a happy worker means a happy customer’ we truly believe a motivated and content
employee will inevitably lead to a satisfied client with provision of required essential support. At
Sadaqat Ltd, we are passionate about nurturing our workforce, adhering to the principles of
ergonomics and providing a harmonious work environment. Our faith, commitment and
investment towards our employees are continually rewarded by their consistent efforts and
successful results for the business.
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Departments function:

Finance Department:

The activities expected from a finance department cover a wide range from basic bookkeeping to
providing information to assisting managers in making strategic decisions. What to expect from
your finance department will depend largely on factors such as how much involvement the
owner/manager has in the organization.

The finance department is also responsible for management of the organization’s cash flow and
ensuring there are enough funds available to meet the day-to-day payments. This area also
encompasses the credit and collection policies for company’s customers, to ensure the
organization is paid on time, and that there is a payment policy for the company’s suppliers. In
most organization there will be some be from of forecast prepared on a regular basis to
systematically calculate the ongoing cash needs.

Looking forward, the finance department will work with managers to prepare the organization’s
budgets and forecasts, and to report back on the progress against these throughout the year. This
information can be used to plan staffing level, asset purchases and expansions and cash needs,
before they become necessary. Some organization often ‘Plan’ by the seat of their pants, while
organization know it is important to have some idea of where you want to go before you start
going there.

Audit Department:

A unit within a company that is responsible for overseeing the procedures and accuracy of
recordkeeping and accounting functions within that company. The audit department conducts
periodic audits, typically with a much greater emphasis on detail that that of a company’s
independent public accountants.

The audit department is usually charged with creating and implementing procedures, controls
and oversight for all business areas that have input into the financial books and records of a
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company. It also usually has responsibility for correcting any deficiencies noted by the
independent accountants.

Export Department:

Export managers serve as intermediaries between foreign buyers and domestic sellers. Unlike
export traders, who buy the products before selling directly to foreign buyers, export managers
find buyers internationally for domestic product manufacturers.

Duties

As middlemen, export mangers plan and coordinate the international shipment of goods. During
the course of the day, they may negotiate with a variety of people, such as shippers, agents and
vendors, and are expected to have excellent customer service skills in dealing with customers.
Export managers are also often responsible for personnel management, which often includes the
hiring, training and supervision of staff.

In their accounting function, export managers may keep track of invoices and prepare reports to
expedite the billing process. They may also have to ensure that shipments are in compliance with
the laws and regulations governing the export industry.

Marketing Department:

Marketing is the process of identifying, anticipating and then meeting the needs and
requirements of consumers in order to make a profit. In contrast, selling involves persuading
customers that your product or services provide the benefits that they are looking for.

A marketing department promotes your business and drives sales of its products or services. It
provides the necessary research to identify your target customers and other audiences.
Depending on the company’s hierarchical organization, a marketing direction, manager or vice
president of marketing might be at the helm.
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The Marketing department plays a vital role in promoting the business and mission of an
organization. It is the Marketing Department’s job to reach out to prospects, customers, investors
and or the community, and create an overarching image that represents your company in a
positive light----that, is, your brand.

Operation Department:

Operation management refers to the administration of business practices to create the highest
level of efficiency possible within an organization. It is concerned with converting materials and
labor into goods and services as efficiently as possible to maximize the profit of an organization.

An operation direction is an interesting position where you’re responsible for ensuring that a
business has the best working environment and processes. Operation directions have the power
to make a business – and the people working there – much happier.

Operations managers oversee their organization’s production of goods and/or services. They
oversee various departments. Such as purchasing, warehousing, and manufacturing. They must
make sure that their company’s products meet or exceed clients or customer’s expectation.

Commercial Department:

Commercial management within an organization is applied only at policy levels. Commercial

policies relate to the rules or practices that define how business will be conducted and the
standard term under which external relationships will be conducted. Many of these policies are
reflected in the term of any contract in which the organization engages. At a transactional level,
commercial management is applied through the oversight of trading relationship to ensure their
compliance with business goals or polices and to understand or manage the financial and risk
implication of any variations

 Management Reporting
 Commercial Issues
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 Budget & forecasting

 Leading & supervision
 Bidding & Pricing
 Project Costing
 Project Correspondence
 Project Strategy Project
 Planning & Implementation
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JOB DISCRIPTION

I am working as a Job Title:

and my job descriptions are as follows:

 Posting of Journal Vouchers

o Sea Freight
o Air Freight
o Truck Freight
o Insurance - Prepaid
o Clearing & Forwarding
o Credit Cards of Directors
o Imprest a/c of Arif (Import)
 Export Sales
 Foreign bank charges detail at end of each month

Job Title:

Finance Intern

Location:

 [2KM, Sahianwala Road, Khurrianwala, Faisalabad Pakistan.]

Duration:

[6 weeks]

Overview:

The Finance Department Internship offers an excellent opportunity for students or recent
graduates to gain hands-on experience in various financial operations. Interns will work closely
with finance professionals, gaining exposure to practical financial processes, tools, and decision-
making strategies.

Key Responsibilities:

1. Financial Reporting:

 Assist in preparing monthly, quarterly, and annual financial reports.

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 Compile and analyze data to identify trends and insights.

 Help in generating graphical presentations and executive summaries.

2. Budgeting and Forecasting:

 Support the preparation of budget templates and reports.

 Update and track budgets for ongoing projects.
 Assist in forecasting revenues, costs, and financial goals.

3. Accounts Payable & Receivable Support:

 Assist in invoice processing and payment follow-ups.

 Maintain accurate records of customer and vendor transactions.
 Help in reconciling accounts receivable and payable balances.

4. Taxation and Compliance:

 Learn about basic tax principles and compliance requirements.

 Support in preparing and filing tax documentation (e.g., withholding tax).
 Ensure adherence to local regulatory standards and guidelines.

5. Audit Assistance:

 Assist in preparing audit documentation and schedules.

 Participate in internal audits and identify areas for improvement.
 Ensure data accuracy and compliance with company policies.

6. Data Management and Analysis:

 Organize and maintain financial databases.

 Use financial software to input, manage, and retrieve data.
 Perform basic data cleaning, validation, and visualization tasks.

7. Cross-Functional Collaboration:

 Coordinate with HR for payroll processing.

 Collaborate with operations or sales departments for project costing and revenue tracking.
 Engage in special projects, such as cost optimization or financial risk assessment.

8. Learning and Development:

 Attend training sessions or workshops on financial systems, software, and regulations.

 Shadow senior finance team members to learn best practices.
 Gain hands-on exposure to tools like QuickBooks, SAP, or Oracle.
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FINANCIAL ANALYSIS

2016 AT GLANCE

NET SALE PKR 11,540 MILLION GROTH 26%

NET PROFIT PKR 763 MILLION GROTH 226%

ASSET PKR 1,139 MILLION GROTH 18 %

EQUITY PKR 5,280 MILLLION GROTH 17%

LIABILITIES PKR 6,029 MILLION GROTH 19%

JCR-VIS UPGRADES ENTITY RATING OF SADAQATA LIMITED!

AUSTRALIAN HIGH COMMESIONER H.E MRS. MARGARET

ADAMSON’S VISIT TO SADAQAT LIMITED MARCH 2016
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FINANCIAL ANALYSIS

FINANCIAL HIGHLIGHT

2016 2015 2014 2013 2012 2011

Rupees in Millions

Net Sale 11,584 9,197 10,249 9,099 6,123 5,912

Gross Profit 2,162 1,257 1,909 1,831 1,306 1,210

EBIT 1,292 743 843 780 618 582

Financial cost 458 445 427 407 359 361

Pre-tax Profit 833 298 416 373 259 221

Post-tax profit 763 234 331 311 199 159

Gross CAPEX 1,088 1,265 589 554 471 261

Net Worth 5,280 4,517 3,283 2,953 2,642 2,443

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Financial Analysis

Summary of Cash Flow

2016 2015 2014 2013 2012 2011

Rupees
in Millions

Cash Flow From Operating 308 836 (371) 243 393 127
Activities

Cash Flow From The Investing (927) (1139) (446) (592) (441) (116)
Activities

Cash Flow From The Financing 656 310 837 356 21 328
Activities

Changes In Cash & Cash 37 7 20 7 (69) 84

Equivalent

Cash & Cash Equivalent- Year 111 74 67 47 40 109

End
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Financial Analysis

Sadaqat Limited

Profit and Loss Account

For the year Ended June 30, 2016

2016 (Rupees) 2015 (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

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

Earnings per share-basic and diluted 6.36 2.19

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Financial analysis

2016 2015 2014 2013 2012 2011

Rupees in Millions

Balance Sheet

Property, Plant and Equipment 5,856 5,229 3,438 3,133

2,717 2,390

Long Term Deposits 82 65 44 38 3630

Stores, Spares and Loss Tools 283 290 281 274 259 248

Stock In Trade 2044 1915 2296 1995 1851 1863

Trade Debts 1993 1392 1157 1117 827 629

Advances, Deposits, Prepayment 128 97 306 111 295 329

And Other Receivables

Tax Refunds Due From Government 812 525 407 267 - -

Cash and Bank Balances 111 74 67 47 40 109

Total Assets 11,309 9587 7,995 6,983 6,025 5,597

Issued, Subscribed and Paid Up Capital 1,200 1,200 950 950 950 950

Retained Earnings 2853 2035 1768 1408 1065 830

Capital Reserves 1,227 1,281 565 564 627 663

Shareholders’ Equity 5,280 4,517 3,283 2,953 2,642 2,443

Long Term Financing 693 844 1,327 262 124 131

Liabilities against Assts Subject to FL 165 180 76 45 50 39

Long Term Deposits - - 0 - - -

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Trade and Other Payable 994 793 666 941 679 476

Accrued Markup 54 48 68 51 57
59

Short Term Borrowings 3,734 2,876 2,391 2,599 2,356 2,323

Current Portion of Noncurrent Liabilities 390 329 184 132 118

Total Equity and Liabilities 11,309 9,587 7,995 6,983 6,025 5,597
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SWOT Analysis

Contents

Strengths: Weaknesses:

-Multiple Certifications - Lack of training session

-Strong Security System -Centralized decision making

-High quality Production - High cost of Production

-Reward for employee -Absence of supply chain

-Tremendous market Position -No own power generation

-Highly qualified and Skilled

management

-Adequate financial resources

Opportunities: Threats:

-Organization can established new unit - Buyer needs demands changes

-Organization can reduce the cost by -Entrance of new competitors

Proper Utilization of resources
-Political Instability
-Organization can increase selling
Turnover -Globally Economic instability

- Changed of government policies

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Strengths

1-Multiple Certifications:

Sadaqat limited have awarded by multiple Certificates which extremely maximize its Strength.

Following are the achieved certificates

 ISO 14000:2004
 Global standard for consumer products
 Certificate of compliance
 OEKO – TEX standard 100
 Certificate of accreditation
 SA 8000:2008
 Gold certificate of compliance
 WWF Green Office
 OHSAS 18001:2007

2-Strong security system:

Sadaqat limited has strong and reliable security system which provides the security from internal
and external threats.

3-High Quality Product:

Sadaqat limited ensure his product quality on very high level and also satisfied his customers
with desire quality product. Management strictly focuses on product according to their standard.

4-Reward for the Management:

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Sadaqat limited properly manage the reward system for his management in shape of Medical
allowance, Provident Fund, Loan Facility, Allocation of Vehicle (Car, Motorcyle), Fuel and
Mobile Balance allowance.

5-Tremendous market position

Market position of sadaqat limited is very strong. Competitive edge also maximizes his
tremendous position in market. No .of domestic and Foreign manufacturing orders taken by
sadaqat limited.

6-Highly Qualified and Skilled Management:

Sadaqat limited has highly qualified and skill management which maximizing his strength in all
section of company. Specially, I personally observed chain and hierarchy of management is very
strong and effective.

7-Adequate financial Resources:

Adequate Financial resources also ensure the strength of sadaqat limited. Mukhtar Brothers
provides and maintains these financial resources which secure the company position in market.

8-Competitive Advantage:

Sadaqat limited take competitive advantage over his competitors. Sadaqat limited export
recorded homemade-ups items since last few years. Approximately 900 million Rupees value
homemade-ups item export every month.
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Sadaqat limited also well known textile industry in Pakistan.

Weaknesses

1-Lack of training session:

At sadaqat limited, there is lack of training and motivational session for the Managerial Staff.
Because of this performance of the Staff and management efficiency can be effort.

2-Centralized decision making:

The decisions are made by the upper management which is weakness of the Sadaqat Ltd.
Because deficiencies can be exist due to not examine the actual realities.

3-High cost of production:

Cost of production is very important factor. Sadaqat limited also facing this problem in shape of
access labor hired for production process and most important thing Sadaqat limited just
depended on grey process which also maximizing his cost as well.

4-Absence of Supply chain:

Sadaqat limited hasn’t his own supply chain which means transportation facilities. So, sadaqat
has to place order to service provider like carriage and freight service. Also face transacts risk.
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5-No own power generation:

Sadaqat Ltd. Hasn’t his own power generation system because of this weakness it has bear more
Electricity, fuel charges more over large quantity coal import special from South Africa or
others.

Opportunities

1-Organization can established new unit:

Current sadaqat Ltd. Relay on grey process which maximizing his cost so, opportunities can be
avail to establish “Spinning” and “Weaving” unit which can be very helpful for decreasing the
cost and also manufacturing the high quality products.

2-Organization can reduce the cost by proper utilization of resources:

Sadaqat Ltd. Can reduce the cost by controlling the wastage from the different processes. It can
be very effective and provide help to properly utilization of resources.

3-Organization can increase selling turnover:

Sadaqat Ltd. has golden opportunities to properly launch his different kinds of products in
domestic market. Sadaqat Ltd. Very efficiently selling his different kinds of products on
international level. So, domestic market can also be achieved easily.
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Threats

Buyer needs demands changes:

Today, the buyer demands for more and efficient change in product quality. So, presence of
threat Sadaqat Ltd. has to fulfill the customers’ demands and provide them high quality products
as according to their demands.

2-Entrance of new competitors:

This is also big threat for Sadaqat Ltd. there is running for taking the selling order between the
competitors. So, Sadaqat Ltd. has to maintain his product quality and also offering his products
on economical prices to take advantage over his competitors.

3-Political Instability:

Political stability of country is very important for business growth. But there is enough political
instability that creating big threats for an organization.

4-Change of Government Policies:

There is also huge and a serious threat for organizations has to face the different policy criteria.
There is Very strict supply of Electricity and Gas provided by govt. imposing of new taxes and
quota system badly affect the organizational performance.
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PEST ANALSIS

Political Instability:

The political situation of Pakistan is not satisfactory. Due to the rapid change in the Government
every government sets its own trade policies.

Economic Situation:

The economic condition of Pakistan can also affect the foreign investors increasing inflation rate
make the cost of production high and thus reduce the profit margin of the investor.

Social Situation:

The change in the lifestyle of the people affects the growing demand of the Sadaqat Ltd.
Products. The change in the lifestyle and needs in different demographics also affect the demand
of the customers.

Due to all these changes Sadaqat Ltd. is performing excellent for the excellence organization as
well as for the customer.

Technological factor:

Technological advancement in all the sectors of the country has changes the entire socio-
economic environment. Especially in the textile sector there is a lot of technological
development.
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Sadaqat Ltd. excellent computerized machines and devices are installed in the Sadaqat Ltd. has
made extension in its present setup by installation of well advanced technology imported from
Japan, China, France.