Professional Documents
Culture Documents
Internship Report: Submitted By: Moaz Haider Registration Number: L1f19bsaf0179 Supervised by
Internship Report: Submitted By: Moaz Haider Registration Number: L1f19bsaf0179 Supervised by
Internship Report: Submitted By: Moaz Haider Registration Number: L1f19bsaf0179 Supervised by
Internship Report
Business School
Faculty of Management Studies
University of Central Punjab
1 - Khayaban-e-Jinnah Road, Johar Town, Lahore, Pakistan
Certificate of Approval
It is certified that the work contained in this report titled “Internship report on Mahmood
textile mills limited” has been carried out and completed by Moaz Haider Registration No.
L1F19BSAF0179, under my supervision during his Bachelors of Accounting and Finance.
Grade Awarded
_________________
Examiner’s Signature
Internship In-charge
_________________
(Prof. Abid Rasheed )
3
Certificate of Completion
4
ACKNOWLEDGEMENT
Many individuals helped me during the process, and I am grateful for it. It is the first and
most challenging difficulty that every student face while working on a report. This is a really
difficult challenge. In contrast to other businesses where workloads are usually much less,
this company deals with a far heavier workload. In my experience, the internship we were
given is too short (six weeks) and the workers of the business aren't really interested in
helping us with our project since they are just there to do their daily tasks. I'm thankful to the
MTM team in Multan for their help and the important information they provided while I
completed my report. I also express my gratitude to the coworkers and other staff members,
Executive Summary
The report is based on an internship at MTM (Mehmood Textile Mills), a company in
the activities that are carried out at this business. Because it is a well-known organization,
MTM plays an important role in the growth of society as well as the development and
integrated textile manufacturing business with facilities for yarn, knitting, fabric dyeing,
processing, washing, and garment manufacture. MTM is a company that is publicly traded on
the Pakistan Stock Exchange. It is Pakistan's biggest knitwear producer and exporter at the
moment. MTM is well-known for its employee-friendly environment. MTM provides a broad
variety of services to its customers and recognizes the need of professional company
management and providing suitable arrangements. Another aim of this internship training is
5
for students to put their classroom management abilities to use and find out how to handle
Contents
Certificate of Approval.......................................................................................................................2
Certificate of Completion...................................................................................................................3
ACKNOWLEDGEMENT..................................................................................................................4
Executive Summary............................................................................................................................4
Chapter 1: Introduction to the Company..........................................................................................5
Members of the board are:.................................................................................................................6
Chapter 2: Organizational Analysis..................................................................................................7
Different departments of MTM (Mehmood Textile Mills)...............................................................8
Showcasing and business advancement office...................................................................................8
HR Policies of the Company...............................................................................................................9
Employee Relations...........................................................................................................................10
Legal Auditors...................................................................................................................................10
OUTLOOK FOR THE YEAR 2021................................................................................................10
Marketing Strategy...........................................................................................................................11
SWOT Analysis.................................................................................................................................12
Strengths............................................................................................................................................12
Weaknesses........................................................................................................................................12
Opportunity.......................................................................................................................................13
Threats...............................................................................................................................................13
Detail of SWOT Analysis..................................................................................................................13
Strengths............................................................................................................................................13
Weaknesses:.......................................................................................................................................15
Opportunity:......................................................................................................................................16
Threats:..............................................................................................................................................17
Financial Analysis of the Company:................................................................................................18
Corporate Social Responsibility.......................................................................................................20
Corporate & Financial Reposting....................................................................................................20
6
fabric, and generates energy. Spinning and weaving are two of the company's sectors. A
weaving factory with about 650 air jet looms is operated by the company. Its weaving factory
produces textiles for the garment, home textile, and technical textile sectors. Poplins, Twills,
Stretch Fabric, Piled Fabric, Technical Textiles, Slob Fabrics, and Finished are some of the
company's goods.
Tencel yarn, zero twist yarns, organic, modal, bamboo, soybean, and fancy yarns, and slob
and lucre slob are among the company's specialty yarns. In addition, the business produces
and sells energy via the Mehmood Power Plant, which has six caterpillar generators that
operate on gas and produce about eight megawatts, and the Roomie Power Plant, which has
three caterpillar generators that produce about five megawatts. Mahmood Textile Mills
the Stock Exchange. Mehr Manzil Lohari Gate Multan is the organization's enlisted central
command. Mahmoodabad, Multan Road, Muzaffargarh, and Mehmood Abad, D.G. Khan
Road, Muzaffargarh, are the organization's factories. The organization's leader group is
7
comprised of individuals who are exceptionally qualified and have broad skills in the
material business.
a series of steps. A process flowchart may help you understand how things work in a clothing
industry. This article will demonstrate the many departments of a garment factory, as stated
in the title. Departments are organized around a set of tasks that must be completed by a
group of individuals.
We'll also learn about the varied roles of the many departments inside a garment unit.
Garment production is a lengthy procedure that begins with sample creation and ends with
The divisions of an apparel fabricating are recorded underneath. Pre-creation, creation, and
after creation offices are among these offices. This segment additionally incorporates a
Merchandising office
Sampling office
Cutting office
Sewing office
Finishing office
departments must be established in order to operate the plant smoothly alongside production
11
departments. Coming up next are a portion of the supporting offices in a piece of clothing
creation framework.
EDP/IT office
Accounting Department
Our company commits to making the most of its human capital. Lowliness and Compassion,
Urgency, and Customer Centric Approach are all essential for our basic belief framework.
Our workers are treated with a thorough and engaging approach. This aids in the
Employee Relations
Employees played a very good and cooperative role throughout the year, according to
management. The warm connection between the company's management and its workers has
remained unchanged for many years. Our low employee turnover rate, whether compared to
Legal Auditors
M/s Sinewing Hameed Chaudhri and Co. Sanctioned Accountants reviewed the Company's
fiscal summaries for the year finished 30 June 2020 and gave an inadequate report. Toward
the finish of the Company's Annual General Meeting, the current evaluators will resign. M/s
Sinewing Hameed Chaudhri and Co. Sanctioned Accountants has applied for reappointment
for the year finishing 30 June 2021, since they are qualified.
restrictions have been gradually lifted internationally and in Pakistan, it remains to be seen
whether the situation is completely under control globally. With the present macroeconomic
scenario, we anticipate that COVID's aftereffects will persist in the first quarter of next fiscal
year, but that the industry's prognosis will begin to recover in the longer term. Despite the
present situation, the Company is committed to development along the same lines. The
availability of an SBP TERF loan is a fantastic opportunity. We are happy to tell you that
certain TERF loans have been granted and others are in the works, allowing the business to
improve its efficiency and productivity in order to achieve long-term top- and bottom-line
maximum of 8.00 million bales produced, which is just 60% of the government's goal for the
year.
Cotton is the most important component in the textile industry. On the one hand, industry is
suffering greatly, while on the other hand, farmers are progressively moving to other crops in
place of cotton due to massive losses incurred by the latter in cotton farming in Pakistan. It is
therefore imperative that the government operate on a war footing and take severe measures
13
to prevent the textile sector from collapsing. Otherwise, it will have disastrous consequences
Marketing Strategy
reasonable price, a good back track system, and complete customer satisfaction.
MTM's marketing department is in charge of promoting the factory's goods, finding new
clients, and increasing the company's order volume. The promoting administrator drives a
showcasing office that is upheld by an advertising group. They meet with potential and
current purchasers. They present the purchaser their latest item advancement (plans). They
will be responsible for the organization's business development. This segment shows the
production line's ability to make new plans, just as industrial facility consistency, quality
strategy, and quality execution. Worldwide attire fairs and displays, where purchasers and
venders meet to find one another, are the most successive commercial center for makers.
Purchasers pick their number one plan during the show and make orders if their ideal valuing
is reached creates websites for marketing purposes and to enhance their exposure to
prospective consumers in this era of the internet. Retaining current customers is equally as
essential as attracting new ones. To keep your current clients, you must please them by
14
delivering high-quality goods on schedule and offering excellent support. Delivering more
than you are paid for is the key motto for retaining clients and making them marketing for
you. More than just commitment and customer expectations are required.
SWOT Analysis
Strengths
ISO 9001-2000:
Weaknesses
High cost of creation
Centralized dynamic
Opportunity
Organization Can grow product offerings
Organization Can catch new market portions all throughout the planet
Organization Can enlist all the more knowledgeable and experienced, individual
Threats
New Entry of contenders
Political precariousness
Strengths
ISO 9001-2000:
Mehmood material is ISO 9001-2000 affirmed, which implies it fulfills worldwide principles
Mehmood Textile Limited has a safer framework set up. There are many disguised
Mehmood is also Oktex 100 certified, which means the company is confident that no
They're weaving using sophisticated looms that they bought in Japan and France. And the
workers' productivity is very good when they use the most up-to-date equipment.
Because Mehmood textile is one of Pakistan's first textiles, it has a special place in the hearts
of its customers. People are devoted to the business since it is an old textile company.
Mehmood's management team is highly qualified; they have recruited international graduates
They pay their workers well and give them bonuses, which motivates the workforce and
The Mehmood's proprietor is perhaps Pakistan's richest individual, with extra plant and
interest in different areas like as concrete and banking. They have the monetary assets to
It is an old material that has kept up with its spot in the material market over any remaining
They have an administration data framework that permits divisions and laborers to speak
with each other, just as an information stockroom where they can promptly trade assets.
They have their own power plant, and Mehmood was the first private organization to begin
Weaknesses:
High production costs of the production costs are high due to inefficient resource use.
Centralized decision-making
Choices are taken by top management, which is a weakness of the Mehmood since they lack
a thorough understanding of the issue and may make decisions that are detrimental to the
business.
18
The worldwide image of the textile industry is extremely poor due to other textile-specialized
nations such as China, Bangladesh, and others. Those nations that provide low-cost products
Despite having a significant national presence, Mehmood has a limited market share in the
global textile sector owing to strong rivals such as China and Bangladesh.
Because the Mehmood textile's advertising and promotional costs are so cheap, it may benefit
Some benefits that other companies provide to their workers, such as transportation and
medical coverage, are not provided by Mehmood, resulting in lower employee productivity.
Opportunity:
Organization Can grow product offerings
Currently the Mehmood not managing in knitwear they can grow their product
offering by delivering knitwear. They have plants and the additional expense for the
creation will be low for Mehmood. What's more, they likewise have better market
notoriety.
If the expense of various issues which isn't using as expected is constrained by the
Mehmood the executives they can deliver more in a couple of expenses. It needs to
Organization Can employ all the more knowledgeable and experienced individual
They can take benefits by recruiting more talented individuals and they should enlist
Threats:
Buyer needs requests changes
Because of the innovative work, the plan and the result of Mehmood is only agreeable
as contrast with rivals around the world and they are not satisfying the interest of
client.
Political insecurity
Political insecurity impacts the Mehmood as a result of the portion framework the
framework which is ascending on regular schedule on the planet can make numerous
issues for the organization and any vulnerability on the planet like 9/11 might
Weight
Key Strategic Factors Weights Rating
Score
Strength
ISO 9001-2000 0.06 3 0.21
Weakness
0.05 4 0.20
High cost of creation 0.06 0.18
3
Centralized decision making 0.07 0.21
3
Weak picture in the worldwide market 0.05 0.20
4
Small share in international market 0.05 0.19
3
Reduction in promotional efforts 0.05 0.17
3
Employee perks and incentives are lacking 0.06 0.18
3
Ever developing contests 0.04 0.18
3
21
Total 0 - 2.89
The firm have a total weighted score of 2.89 to indicating that it is in a strong position since
its internal strengths are greater and its reaction to weaknesses is adequate. The company's
internal position is adequate but it can be much better if its flaws are addressed appropriately.
External Factor Evaluation
EFE Matrix of NBP
Weight
Key Strategic Factors Weights Rating
Score
Opportunities
Organization can grow product 0.06 3 0.23
offerings
notoriety.
22
assets.
assets.
experienced individual
23
their advancement.
Threats
Because of the innovative work, the 0.05 0.18
circumstance.
fare.
Total 0 - 2.6
The company have a total weighted score of 2.6 to representing that it responds well to
external opportunities and threats. The company's external position is adequate and there are
always opportunities for it to improve by taking advantage of appropriate opportunities.
Space Matrix
The SPACE Matrix for MTM is built utilising the company's market data, such as financial
statements that it discloses to its shareholders. The SPACE Matrix is divided into four
quadrants, each of which represents a different set of tactics, such as:
Aggressive Quadrant:
This quadrant covers techniques such as integration, intensification, and diversification.
Conservative Quadrant:
Intensive and diversification tactics are included in this quadrant.
Defensive Quadrant:
This section covers defensive tactics such as retrenchment, divestment, and liquidation.
Competitive Quadrant:
Integration and intense strategies are included in the Competitive Quadrant.
25
The SPACE Matrix is used to gather information about the firm to x-axis and y-axis
responses are derived using the following corporate information.
FP (Financial Position), CP (Competitive Position), SP (Stability Position), and IP (Industry
Position)
FP and IP vary from +1 to +7 with +7 indicating the best reaction and +1 indicating the
weakest.
While the CP and SP scales from -1 to -7 with -7 indicating the poorest reaction and -1
1
27
-2.48
-4 -3 -2 -1 1 2 3 4
-1
-2
The -2.48 and 0.6 responses for the x-axis and y-axis respective are displayed over the x, y
plane in the SPACE Matrix with the resultant point of intersection in the conservative
quadrant. This indicates that in order to increase profit and success. The firm needs
implement intense and relevant diversification tactics. These are factors of market
Penetration, market development and product development three intense tactics available to
the firm or it can pursue a related diversification strategy.
Financial Analysis of the Company:
The reporting year has seen extraordinary difficulties that have had a significant effect on the
Company's performance. This year may be divided into two distinct periods: pre-COVID and
COVID. Our company's performance prior to COVID-19 was outstanding, with a net profit
of Rs. 116.808 M in the first quarter and Rs. 220.558 M in the intermediate accounts. The
spread of COVID-19 destabilized everything at the start of the second half, just as we were
about to enjoy the benefits of our previous years' significant investment in BMR of spinning
machines and the construction of a state-of-the-art new weaving unit. COVID-19 was
designated a global pandemic by the World Health Organization, which urged international
services across the globe have closed. This economic downturn wreaked havoc on companies
all around the globe. Textile Manufacturing is one of the industries that has been badly
28
impacted, since it is the second biggest job creator after agriculture, accounting for 10% of
total GDP. Coronavirus had such a large effect that it drove the country's total economic
growth into negative territory. The Pakistani government also adopted other preventive steps
to fight the effects of the coronavirus, including imposing a lockdown on businesses. We had
to shut manufacturing facilities due to government efforts to combat the epidemic, and we
suffered significant production losses as a result. We have not laid off any employees or
reduced any employee's pay by the mercy of Almighty ALLAH. Because of the downturn in
local and worldwide economic activity, yarn and fabric prices have fallen considerably. In
this case, some purchasers refused to lift their contractual items, while others demanded that
their previously negotiated pricing be revised. Debtors' turnover days rose as our clients'
payments were put on hold. During these troubling times, management devised a Post
Traumatic Growth (PTG) strategy that led us to make the right decisions at the right time,
such as cutting our sales revenue during the mid-COVID period and procuring raw material
stocks before the pandemic at current high prices, resulting in a gross profit loss of about 2%.
Furthermore, we took the decision to keep our completed goods during COVID in order to
limit losses on low-cost sales. Our total performance in the post-COVID portion of the year
was so poor that even the pre-COVID period's aggregate gains vanished. However, the
Company's financial stability remains robust, and there is no evidence of impairment in the
Company's financial assets or obligations. To preserve the sector, the Pakistani government
made smart and foresighted choices; the SBP took aggressive measures to revive the
economy, deferring loan payments for a year and lowering policy rates. The Company has
taken advantage of these services, which have enabled it to improve its cash flow and restore
normal operations.
29
We are happy to notify our members that we have implemented an innovative Business
Intelligence System for faster and more accurate reporting, analysis, and planning. The
system's openness has enabled us to make more informed choices and achieve a competitive
edge. The earnings of partner businesses fell dramatically in this reporting year as a result of
Our organization is devoted to the social and natural improvement of society and trusts in
fashioning solid associations with individuals from varying backgrounds. To reinforce these
associations, local area building exercises are completed, with an attention on youngster
instruction and safe savoring water in the encompassing districts. The 'Supportability Report,'
which is remembered for this Annual Report, has nitty gritty data on numerous subjects.
SOPs. Our commitment to helping the communities in this time of need is unshakable. A
coordinated effort was started to provide food hampers to those in need, as well as medical
supplies to health workers. During this epidemic, our business is committed to ensuring the
30
safety of its workers and extending assistance to neighboring communities, and has set aside
The Company is focused on acceptable corporate administration; the Board recognizes its
obligation in regard of Corporate and Financial Reporting Framework. The Directors affirm
that:
The Company's fiscal summaries, created by its administration, reasonably mirror the
The Company has kept legitimate books of records; proper bookkeeping rules have been
routinely continued in the creation of the budget summaries; and bookkeeping gauges have
No critical deviation from the accepted procedures of the Code of Corporate Governance, as
The inside control framework is all around planned and has been very much carried out and
checked
The fiscal summaries were ready as per International Financial Reporting Standards, as
appropriate in Pakistan, and the arrangements of the Companies Act, 2017, with any
Tax and toll data is remembered for the notes to the budget reports and structures part of the
fiscal summaries.
exceptional. This report is fundamentally an endeavor to recognize the regions which should
be improved. In this period of innovation, the "Data" is the way to achievement in the
business. This implies that the effective financial specialist will be who will have the ideal
data at the ideal time. This remark prompts the end that the Information Sharing Process
ought to truly be improved. The general investigation is demonstrating that the organization's
viability of its administration, their readiness to make the most of chances and face
difficulties of changing financial picture, this all adds to the especially advanced and sound
situation of organization. This is truly considerable for the commitment and difficult work of
Recommendations
At present office of reward is offered distinctly to creation staff however such impetuses
Special motivating forces ought to likewise be given to Head on Eid and on other exceptional
Medical offices are given in the factory yet such offices ought to likewise be given to the
executives.
32
Different instructional classes ought to be masterminded the up lifting and working on the
They give transportation office to just female representatives I figure male ought to likewise
be furnished with movement comfort. This will make the effectiveness for laborers and
There is likewise an issue of work over-burden for the representatives and it ought to be
Employees ought to be paid extra for the work which they done in the wake of working
hours.
The fundamental target of advertising office is to draw in the client by guaranteeing quality
with cutthroat value, sound back track framework and absolute consumer loyalty.
Activity of internship
My duty was to deals with customers who want to check the quality of the company’s
manufacturing samples.