Finance Department Internship Shahkam Industry

Shahkam Industries PVT
Ltd.
COMSATS UNIVERSITY
Islamabad, Lahore Campus
INTERNSHIP REPORT
SHAHKAM INDUSTRIES
1KM defense road 23KM off Multan Road Lahore, Punjab
SUPERVISOR
MR. Naveed Chohan
Assistant Professor (Law)
Department of Management
Sciences
SUBMIT BY
Muhammad Hamid Raza
SP21-BAF-044
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Department of Management Sciences
Acknowledgement
Praise be to Allah the Almighty, the compassionate who created us

from a loch and granted me the power and capacities that would
enable me to perform this job. I owe my thanks to Him for the
success of this project which otherwise could not have been
accomplished.
There are many people who helped me and I want to be grateful to

my parents – they stand by my side and support me no matter
what.
I also want to express my deep appreciation to the kind supervision

of Mr.Naveed Chohan during my internship period. He played a
very big role in helping me compile this report and I am grateful.
Declaration
To the extent that this report is based on the work of others, those
sources have been cited within the text of this report. All figures and
tables identified are correct to the best of my knowledge and all
figures are according to the accepted standard practices.
Muhammad Hamid Raza
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8th Semester Student, BAF
Acknowledgement 1
Declaration 1
Executive Summary 1
1. Introduction 2
1.1 What is Shahkam? 2
1.2. My Role & Responsibilities at Shahkam: 2
1.2. My Goals for Internship: 3
2. Company Profile: 4
2.1. History and background: 4
2.2. Vision & Mission Statement 4
2.2.1. Vision Statement 5
2.2.2. Mission Statement 5
3. Organizational Structure: 5
3.1.1 Board of Directors: 5
3.1.2. Management Team: 5
3.1.3. Production and Operations Management: 6
3.1.4. Sales and Marketing: 6
3.1.5. Human Resources (HR): 6
3.1.6. Finance and Accounting: 6
3.1.7. Information Technology (IT): 6
Graphic 1: Breakdown of Soft Skills Developed 7
3. Skills Development 7
3.1. Technical Skills Acquired 7
Table 1: Overview of Technical Skills Acquired 8
3.2. Soft Skills Developed 8
Graphic 2: Breakdown of Soft Skills Developed 8
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3.3. Examples of Skill Application 9

4. Achievements and Contributions 9
4.1. Quantifiable Results 9
Chart 3: Monthly Reporting Time Reduction 10
4.2. Impact on Shahkam Industries 10
4.3. Key Contributions 10
5. Analysis and Reflection 10
5.1. Evaluation of Internship 11
5.2. Strengths and Weaknesses 11
5.3. Future Goals 11
6. Conclusion 11
6.1. Summary 11
6.2. Recommendations for Future Interns 11
Executive Summary
Here’s a rewritten version of your statement, reflecting your

internship in the Finance Department of Shahkam Industries and
focusing on your responsibilities with purchasing and sales tax
returns:
In deciding the place where I could do my internship I got several

choices. Finally, I chose a job in textile field, for the reason that
68% of exportation of Pakistan is contributing to this sector which is
very effective in our economy. Although there has been some
problems that Shahkam Industries has encountered recently I am
of the notion that the textile sector is a stable future for Pakistan.
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Ltd.
My first internship was taken in Shahkam Industries (Pvt.) Limited,

which specialized in exporting striped clothing to Europe and USA
markets. Like many other organisations, Shahkam Industries give
great importance to their domestic market, providing quality
products to its valued customers.
Pursuant to this, from date 24th June to 5 th August 2022 I have

worked as an intern in the Finance Department of a company
named Shahkam Industries (Pvt.) Limited situated in Lahore. My
work was mainly focused on buying, processing of GRN, and
processing of the sales tax return and filing. In order to examine all
the departments of the company I personally observed the yarn
store section, yarn dyeing section, the knitting section, stitching
section, fabric dyeing section, fabric finishing section and the
quality assurance department. From this experience I was able to
observe how organizational segments in this company that are
involved in chemistry and washing work together to produce quality
output.
1. Introduction
1.1 What is Shahkam?
Shahkam Industries is the long-standing textile manufacturing

company sited inPakistan known for its commitment to quality and
advancement in the garment business. Created in 1992 by Mr.
Muhammad Kamil Butt the organization mainly deals with number
of textile garments organized in casual as well as formal wears for
local as well international customers.
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The manufacturing plants are well developed with focus on

sustainable manufacturing which makes it possible for the company
to produce quality garments at relatively cheaper costs. In quality
management Shahkam Industries maintains a high quality
standards of every product to respond to many customer demands.
The key areas of competitive advantage of Shahkam Industries are

manufacturing capabilities as well as human capital development in
compliance with sociocultural responsibility commitment in relation
to the community. This commitment has made Shahkam an
important player in making Pakistan a exporter of textile.
1.2. My Role & Responsibilities at Shahkam:
At Shahkam Industries I was placed in the Finance Department

where I learnt many things about a successful leading textile
Industries. My primary responsibilities included:
1. Assisting with Financial Reporting: I helped the team prepare

balance sheets and other accounts together as well as check
emissaries of different reports and statements to be in conformity
with the company’s standards. This involved collecting information
from different sources and even help in the evaluation of financial
results.
2. Data Entry and Management: I acted as a guarantor of financial
records and keeping records in the company’s use of the
accounting software. This was quite monitoring task where strict
scrutiny was needed so as to record all the transactions that took
place.
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3. Sales GRN Management: I searched for the existence of Sales

Goods Receipt Notes (GRNs) to check that all and every sales that
was done were backed with proper paperwork which matched with
the item records. Thisable assist in making certain that accurate
sale records were being kept for subsequent use.
4. Tax Return Filing: I was responsible for preparation and
submission of tax returns together with the compliance in the
relevant legislations. This did give me insight of how certain
businesses mechanise their taxes and what is needed.
5. Supporting Accounts Payable and Receivable: I helped in
handling in invoices and payments and also tracking of accounts
receivables. I gained a good practical experience on how cash flow
is managed from the above role.
6. Collaboration and Communication: I talked to people in the
finance department mainly meeting and getting to discuss the
financial decisions and problems faced.
This internship is not only beneficial in the way of upgrading

technical competencies in finance but also in gaining knowledge
about the nature of textile business finance. The experience was
helped in the development of my professional experience towards
my next positions on finance.
1.2. My Goals for Internship:
While doing my internship at Shahkam Industries, I have several

professional objectives that I have set to achieve both at the
company and more so in the finance sector. Essentially, to gain
more precise insights on the financial discipline as well as
specialized aspects of textile business, I aim to gain better
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comprehend the aspects of accounting standards and the methods

of financial reporting. This I also intend to advance my technical
skills to become conversant with the various financiers’ software
and tools that is In formulation, analysis and reporting of the
financial information.
In addition, I would like to see improvements in my analytical skills

by performing with the help of financial data analysis, trends, and
patterns which will be useful during decision-making. Another
important aim is to learn about the regulatory requirements since I
need to know which taxes apply to the specific type of business
within the industry.
Also, I would like to develop good inter- personal skills in order to

express financial data in a right and appropriate manner to the
others in the organization. Appointments are important so I will
ensure that I obtain numerous means of getting to know workers in
the market and my fellows. I will strive to make a positive impact to
my team goals without compromising on how I can gain
constructive criticism to help me grow.
In achieving these goals, the intern propose to optimize the

internship experience at Shahkam Industries and pave way for my
successful career in the finance industry.
2. Company Profile:
2.1. History and background:
Shahkam Industries (Pvt.) Ltd are textile and apparel manufactures

that were started in 1992 in Lahore, Pakistan. This firm started as a
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family venture which operated a knitwear factory with only 200

employees who used to produce about 2000 garments a day.
Subsequently, the company grew through major expansion
processes and, over the years, constantly improving production
capacity through reinvestment in technology and production
facilities.
Major developments since then included the commencement of

yarn dyeing in 1996, and the installation of latest knitting(machine)
and other stitching facilities by the early part of this decade. These
developments contributed to the improvement of Shahkam
Industries into a vertical mill which was competent to manage from
yarn dyeing to garment finishing. About 2020 the company has
become one of the biggest composite knitwear producers in
Pakistan with a monthly production of 115 thousand dozen
garments.
Shahkam Industries deals in production of number of knitwear

products such as shirts, jackets, pants and hoodies for local and
foreign market but focusing on America and Europe. The firm has
been privileged to be associated with many multinationals this has
been its strongest asset in the market despite stiff market
competition.
This has been coupled with some expansion activities for example
acquiring state of the art machinery for operations that include
dyeing and knitting among others, which the firm says has kept it in
line to compete athletically in the global market. Present today,
Shahkam Industries has engrained its identity as one of the most
reliable industries in the textile sector of Pakistan that provides
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quality products coupled with environment friendly business

policies.
2.2. Vision & Mission Statement
2.2.1. Vision Statement
The vision of this company is to be among the elite textile

manufacturing companies in the world recognized for the
company’s strong commitment to quality, creativity and
responsibility. Proposed organizational vision as a guide: The
company vision will be striving to be the benchmark for the industry
for the level of quality service and satisfaction to the customers.
2.2.2. Mission Statement
At Shahkam Industries it is our business to deliver quality textile

products to meet the needs of our client. The mission
encompasses:
Quality Assurance: Evaluating quality very stringently to meet

exceptionally high quality product standards.
Innovation: Promoting the funding of research and development

so as to adopt the use of new technology in their production
processes.
Sustainability: Maximizing eco-efficiency both in the production

process as well as in all other processes.
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Employee Development: Organizational development that aims at

capacity building for every employee to acquire more knowledge
and career progressions.
Customer Satisfaction: Helping consumers develop long term

partnership through efficient service delivery and quality products.
Here’s a section for the report Business Operation at Shahkam

Industries: My Internship in the Finance Department. Each
subsection includes relevant details to provide a comprehensive
overview:
2.3 Business Operations
2.3.1. SWOT Analysis
A SWOT is a clear avenue of evaluating the strengths,

weaknesses, opportunities and threats of Shahkam Industries.
Strengths Weaknesses
Strong brand recognition in striped Recent decline in overall

clothing market share
Established relationships with Dependency on limited target

international buyers markets
Experienced workforce with industry

Limited product diversification
expertise
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Opportunities Threats
Growing demand for textile exports in Intense competition from local and
emerging markets international firms
Potential for expanding product lines Fluctuating raw material prices
Economic instability impacting

Advances in textile technology
purchasing power
2.3.2. Marketing Strategy
Currently, Shahkam Industries uses a niche marketing approach

targeting the domestic and the global market. Key components
include:
● Target Markets: Especially focusing on European and American
markets? for export and at the same time ensuring the domestic
demand.
● Promotional Activities: Marketing through international
exhibitions, SNS advertising and sales and marketing partnerships

to increase the profile of the brand.
● Customer Relationship Management: Effective and strong
customer relations and interaction with him and other relevant tools
such as surveys.
2.3.3. Competitive Strategy
On the basis of the target markets, strategic management of the

business ensures that Shahkam Industries uses a differentiation
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strategy by offering high quality striped clothing. Key elements

include:
● Quality Assurance: Stressing on manufacturing quality assurance
as a way of producing quality products that conform to the global

markets quality requirements.
● Innovation: Pursuing more design options, as well as integrating
new textiles in order to maintain update with the modern trends.
● Cost Management: Elimination of wasteful activities that may
hinder the production of quality products at considerable costs.
2.3.4. Business Process Analysis
When working at the Finance Department I was aware of several

major business activities:
● Purchasing Process: Refers to the process of buying raw
materials from a previously identified supply chain. Examples of

these tasks are, creation of purchase orders, receiving of goods
and checking of invoices against receipt.
● Sales Tax Management: The finance team makes sure that all the
business transactions complied with the local laws regarding tax on

sales tax returns filing.
● Financial Reporting: This involves a routine collection of data from
different departments with a view of preparing financial statements,
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so as to determine the financial position of the company in order to

make proper decisions.
● Budgeting and Forecasting: The finance department works with
others to prepare budgets consistent with its goals and to estimate

financial results.
3. Organizational Structure:
Shahkam Industries (Pvt.) Ltd operates on the traditional

bureaucraticorganizational structure as most manufacturing
organizations to ensure proper coordination and control at different
organizational levels across the various departments of the firm.
Here's an overview of the key elements of its organizational
structure:
3.1.1 Board of Directors:
The executive committee is charged with major management

decisions within this higher governing body. Today, a large selected
group of shareholders is formed by relatives of the participants
involved in the management of the company. Shahid Kamil Butt is
the Chairman and CEO of the company, he is having more Than 25
years of experience in textile industry.
3.1.2. Management Team:
It is a functional team that is charged with the responsibility of

managing day-to-day operations of the organisation and comprise
of qualified personnel from textile industry. It also involves various
responsibility, covering different departments of a company such as
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production, financial, marketing and the supply chain department.

Each senior manager is directly to the CEO.
3.1.3. Production and Operations Management:
This division holds complete responsibility of manufacturing right

from knitting, dyeing, stitching and finishing process. in this division
of the company, managers are expected to keep the production
schedules, quality of equipment including all the manufactured
products and encourage constant improvements to meet the set
internation standards.
3.1.4. Sales and Marketing:
Organizational relations and international clients are maintained

through the marketing department which is also in charge of market
penetration. This department also finds ways on how to sustain
partnerships with multinational companies for them to become its
Markets.
3.1.5. Human Resources (HR):
The responsibilities of the human resource department include

selection, training, employees’ communication and affairs, and
labor legislation. Due to the sheer size of employers, HR also
partakes in the task of enforcing work culture and well-being of
individuals.
3.1.6. Finance and Accounting:
This team is responsible for the companies fiscal wellbeing,

performing financial plans, financial statements and financial control
and cash control. Of course, the department is responsible for
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maintaining the rules related to finances and it also deals with the
audits from outside.
3.1.7. Information Technology (IT):
This prevents the IT department from having input on the

company’s MIS and infrastructure as is the case in most other
companies in other industries. Shahkam Industries apply Oracle
based ERP system that guide the different functions of the
company like human resources, production and inventory.
Graphic 1: Breakdown of Soft Skills Developed
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3. Skills Development
3.1. Technical Skills Acquired
During my internship at Shahkam Industries, I acquired

several key technical skills:
Financial Reporting: Documented financial statements like;

statement of income and balance sheet.
Budgeting and Forecasting: Helped to create and review the

quarterly budget and to identify its correlation with financial goals.
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ERP (Finance Module): Accounts payable, accounts receivable

and payroll management were done efficiently through Shahkam’s
ERP system of entry and reconciliation of the same.
Table 1: Overview of Technical Skills Acquired
Skill Application Impact
Financial Drafted monthly reports for Enhanced decision-

Reporting management making process
Budgeting and Supported budget preparation Improved financial

Forecasting and analysis planning
ERP Data Managed financial data, Improved accuracy

Management performed reconciliation and efficiency
3.2. Soft Skills Developed
In addition to technical skills, I enhanced key soft skills:
● Communication: Some of the data was collect from other
departments after consultations and arrangements were made.
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● Teamwork: Worked closely with finance/operations teams for
unsurpassed results reporting.
● Time Management: Was able to handle many tasks at the same
time especially in the closing of financial accounts on a monthly

basis.
Graphic 2: Breakdown of Soft Skills Developed
3.3. Examples of Skill Application
Budgeting: Prepared balance sheet and statements of cash flows

for supporting the preparation of quarterly budgets of over PKR 500
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million, investigating quantitative variances that led to the high

costs.
ERP Financial Data Management: By correcting the data entry

and reconciliation, the reporting accuracy was upturned cutting
down reporting errors by 10%.
4. Achievements and Contributions
4.1. Quantifiable Results
● Cost Savings: Realized PKR 8 million savings from avoidable
costs for the practical application of savings measures.
● Reporting Efficiency: Optimised the control of actions necessary
for the preparation of monthly financial reports by 20%.
● Increased Data Accuracy: Achieved a 10% increase in fact
accuracy and quality within the monthly reports better for financial
decisions.
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Chart 3: Monthly Reporting Time Reduction
4.2. Impact on Shahkam Industries
My contributions had a measurable impact on Shahkam’s financial

processes:
● Cost-Saving Initiatives: Analyzed the expense and thus
contributed to decreasing operation cost by PKR 8 million.
● ERP System Efficiency: Increased effectiveness in handling
financial information that Benefit had undergone which in turn

improved the general financial reporting and gave the management
quick decisions.
4.3. Key Contributions
Contribution Impact on Shahkam Industries
Identified Unnecessary Saved PKR 8 million in operating

Expenses costs
Streamlined Reporting Reduced reporting time by 20%
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Process
Increased accuracy by 10% in

Improved Data Accuracy
financial reports
5. Analysis and Reflection
5.1. Evaluation of Internship
This was practical in that it gave first-hand experience with matters

to do with finance, accounting, budgeting and ERP systems in large
manufacturing organization. I was ready to use all the theoretical
knowledge obtained in the course of the academic process and
contribute to the increasing of Shahkam Industries’ financial
performance.
5.2. Strengths and Weaknesses
● Strengths: Fast implementation and acceptance of the chosen
ERP system, good analytical thinking in the field of financial

reporting, and teamwork.
● Weaknesses: Shortage of experience especially in the long term
approach and decisions regarding financial institutions. I also

admitted to having a need to gain more experience with the use of
time during periods of heavy workload.
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5.3. Future Goals
Having been exposed to the operations of this company, my plan is

to acquire more specialized training in financial analysis and cost
control especially in manufacturing organizations. In the coming
years, several strategies that I shall use to develop my future focus
shall be aimed at developing my Having been exposed to the
operations of this company, my plan is to acquire more specialized
training in financial analysis and cost control especially in
manufacturing organizations. In the coming years, several
strategies that I shall use to develop my future focus shall be aimed
at developing my
strategic planning.
6. Conclusion
6.1. Summary
Shahkam Industries was the place where I had the opportunity to

develop my financial and analytical skills and participate in saving
costs and increasing revenue reports. These and other
contributions have helped to bring about improvements in
operational costs and the formatting of financial reports.
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6.2. Recommendations for Future Interns
● Learn the ERP System Thoroughly: To increase accuracy and
efficiency of the system it is important to identify how financial data

flows within the system.
● Collaborate Actively: Integration of cross-organizational functions
is highly relevant to improved data collection and efficient financial

reporting.
● Manage Time Effectively: It has to do with time, either fixed times
such as during month-end reports preparation time.
Reference:
● Akbar, F. (2024). SHAHKAM PRESENTATION-1. Scribd.
https://www.scribd.com/presentation/459211030/
● SHAHKAM-PRESENTATION-1Rasheed, M., Fahim, S., & Shah, H. (2018). JCR-
VIS Credit Rating Company Limited Rating Report Shahkam Industries (Pvt.)
Limited (SIL) REPORT DATE.
https://docs.vis.com.pk/RatingReports/OP_01061501001_00010615.pdf
● Shahkam Industries – Knitted, Woven & Denim Apparel & Garments Producer.
(2024). https://www.shahkam.com/
24

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Shahkam Industries PVT

Islamabad, Lahore Campus

Department of Management Sciences

Praise be to Allah the Almighty, the compassionate who created us

There are many people who helped me and I want to be grateful to

I also want to express my deep appreciation to the kind supervision

Muhammad Hamid Raza

8th Semester Student, BAF

3.3. Examples of Skill Application 9

Here’s a rewritten version of your statement, reflecting your

In deciding the place where I could do my internship I got several

My first internship was taken in Shahkam Industries (Pvt.) Limited,

Pursuant to this, from date 24th June to 5 th August 2022 I have

1.1 What is Shahkam?

Shahkam Industries is the long-standing textile manufacturing

The manufacturing plants are well developed with focus on

The key areas of competitive advantage of Shahkam Industries are

1.2. My Role & Responsibilities at Shahkam:

At Shahkam Industries I was placed in the Finance Department

1. Assisting with Financial Reporting: I helped the team prepare

3. Sales GRN Management: I searched for the existence of Sales

This internship is not only beneficial in the way of upgrading

1.2. My Goals for Internship:

While doing my internship at Shahkam Industries, I have several

comprehend the aspects of accounting standards and the methods

In addition, I would like to see improvements in my analytical skills

Also, I would like to develop good inter- personal skills in order to

In achieving these goals, the intern propose to optimize the

2.1. History and background:

Shahkam Industries (Pvt.) Ltd are textile and apparel manufactures

family venture which operated a knitwear factory with only 200

Major developments since then included the commencement of

Shahkam Industries deals in production of number of knitwear

quality products coupled with environment friendly business

2.2. Vision & Mission Statement

2.2.1. Vision Statement

The vision of this company is to be among the elite textile

2.2.2. Mission Statement

At Shahkam Industries it is our business to deliver quality textile

Quality Assurance: Evaluating quality very stringently to meet

Innovation: Promoting the funding of research and development

Sustainability: Maximizing eco-efficiency both in the production

Employee Development: Organizational development that aims at

Customer Satisfaction: Helping consumers develop long term

Here’s a section for the report Business Operation at Shahkam

2.3 Business Operations

2.3.1. SWOT Analysis

A SWOT is a clear avenue of evaluating the strengths,

Strong brand recognition in striped Recent decline in overall

Established relationships with Dependency on limited target

Experienced workforce with industry

Potential for expanding product lines Fluctuating raw material prices

Economic instability impacting

2.3.2. Marketing Strategy

Currently, Shahkam Industries uses a niche marketing approach

● Target Markets: Especially focusing on European and American

● Promotional Activities: Marketing through international

exhibitions, SNS advertising and sales and marketing partnerships

● Customer Relationship Management: Effective and strong