Internship Report

MASOOD TEXTILE MILLS LIMITED

SUMITTED TO:

HUMAN RESOURCE MANAGER

PREPARED BY:

AHSAN MUSHTAQ MUBEEN ARSHAD MUHAMMAD WAQAS AHMAD NAUMAN SALEEM ZAHID LATIF (GROUP # 5)

THE ISLAMIA UNIVERSITY OF BAHAWALPUR

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RAHIM YAR KHAN CAMPUS

Preface

It is the age of information & competition. The scientific

advancement has made the life more dynamic & competitive

worldwide. So one must have practical knowledge and trained

enough to live successfully in present competitive situation because it

is becoming difficult to survive without creating changes & adapting

ourselves according to these changes.

The students of MBA receive knowledge during their study, has

completely theoretical base. Their ideas remain unsaturated, unless

students do not have any practical experience. So to provide the

students an extensive exposure of practical business aspects,

department of business management sciences arrange a compulsory

6 weeks internship program, for all of its MBA students, in a well-

known organization. This thing enables the young business

executives to familiarize with professional business approach. To

enhance their writing skill, the students are also required to make the

written presentation of their experiences during internship program.

Masood Textile Mills Ltd. (Apparel Division) a leading

organization in Garment sector was assigned to me for internship.

This report is about my experience & knowledge, which I have gained

during my internship program. In this report I have made a humble

attempt to express most efficiently and effectively what I experienced

& observed at Masood Textile Mills (Apparel Division). I think that this

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report will be really helpful for those who want to know about Masood

Textile Mills Limited (Apparel Division) Faisalabad.

ACKNOWLEDGEMENT

First of all we thanks Allah for whom our all praises are for Him.Then we thank our university who send us for internship program with intent to have a great knowledge and experience in Masood Textile Mills Limited.Our most respect for human resource department in Masood Textile Mills Limited who gave us chance to work for best of our skills. We especially thanks to Miss Uzma Meraj, Mr. Naeem, Mr. Tahir coordinator of internship program. We also thanks to all the respective department managers like Mr. Belal……… (HR Dept.)Mr. Kumar………… (QA Dept.)`Mr. IrfanMr.Tayyab………… (Forwarding Dept.)Mr. Farooq………… (Costing)Mr. AbbasMiss HinaMr. Zulfqar………… (MRP Dept.)Mr. Irfan……………. (Production Dept.)Mr. Sajjad………….. (PPC Dept.)

Now our thanks to Mr. Mahboob A. Shah Director Rahim Yar Khan Campus, Mr. Tariq javed Incharge Internship program and Mam. Nomeeta Zainab Sultan Deputy Director Rahim yar Khan Campus.

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Dedication

“We dedicate our all efforts to my affectionate, loving

and kind parents, Teachers, Friends whose spiritual

inspiration helped us in all the path of lives. And also

the effort is dedicated to Human Resource Manager of

the Masood Textile Mills (Apparel Division) and all the

relevant department Managers who helped us in all

the duties which are assigned to us”.

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Sr. # Description

01 Preface

02 Acknowledgements

03 Executive Summary

04 Introduction of Organization

05 Mission, vision and objectives of organization

06 Organizational structure

07 Working of various Division/ Departments

08 Sales and employees volume

09 Financial analysis

10 SWOT analysis

11 Suggestions and recommendations

12 Conclusion

13 Glossary

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Executive summary

The facts and figures of Masood Textile mill (Garments and Head

office) make base of this report. MTM, having state-of-the-art

technology have its own spinning, knitting, processing, stitching and

finishing Divisions. The establishment of MTM in 1984 was in the

shape of spinning mill, later on in 1994 its activities expanded to

worldwide popular garments business. Mr. Shaid Nazir is the sole

proprietor and CEO of MTM.

Yarn, Fabrics and apparels are the famous products of MTM. MTM

worldwide renowned customers are Sears, JC Penny, Nautica,

Dockers and Vantage. Eighty-five (85) % of the products are exported

to USA and 15 % to Europe. Fashion garments like Polo, Rugby and

Henley shirts along with basic garments like Crew Neck Tee, Sweat

shirt, Boxer shorts and Bikinis are produced almost 120,000 dozens

per month. In-house embroidery facility is available and equipped

with Tajima machine.

Professionals including two hundred MBAs are part of the team who

actively show the skills in true spirits that gave such heights to this

mill. Textile engineers and Industrial engineers are the others whose

contribution cannot be questioned.

Masood Textile Mill feels pride for the achievement of its staff in

shape of achieving WRAP and ISO 9002 CERTIFICATION. The

latest computerized Barocade system of MTM that assures quality in

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every operation of production from spinning to packing make it unique

and the only mill in Pakistan with such state of the art technology.

Bar codes are fixed on every product that assures to be traced back

to the first stage and can be used to find out the root cause of

shortcoming in the process.

Having in-house Yarn, Knitting, Fabric dyeing, Processing, and

Laundry and Apparel Manufacturing facilities make MTM a fully

vertical mill.

The turn over of 55.83 million dollar in year 2004 depict its very

profiting venture.

For constant exploration of quality products the R & D department is

very aggressively performing. They work hard to achieve TQM in

order to full fill their vision statement of “To be the world’s best

apparel company.”

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INTRODUCTION OF ORGANIZATION

MTM(apparel division) is a SBU of Masood group.Masood

group was founded by Mr.Ch Nazir Ahmad father of Mr.Shahid

Nazir.Kohistan bus service was the first professional step by Ch.Nazir

Ahmad .After wards dreamland hotel,sangeet cenima and aizad

beverages were established in 1978 and 1983 respectively.Mr.Shahid

Nazir and Mr.Zahid Nazir helps his father by the formation of

industrial cooperative bank along with the development of Rabia trust

hospital.kakakhel Ghee mills and a flying training school were

founded in 1994.

MTM Apparel Division was established by Mr. Shahid Nazir

(CEO) in 1995. It is located on Sargodha road Faisalabad. MTM is

one of the largest knitted garment manufacturers of Pakistan.

Masood is a 100% export oriented company the major markets of

MTM are USA and Euorpe. Quality is the core competency of MTM. It

is a ISO 9002 certified company, it also having certifications of WRAP

(Worldwide Responsible for Apparel Production), JC-Penny

(Operational Excelence Award 2003) and Russel Corporation

(Global Quality Recognition 2003).

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Vertical line of Operation

The details of vertical operations of Masood are as follows:

Spinning

Knitting

Dyeing, Processing & Laundry

Stitching

Embroidery

Spinning

Spinning Division of Masood Textiles is capable of producing

25,000 lbs. of carded and 10,000 lbs. of combed Ring spun yarn

every day (based on 20/s count). The division, equipped with

most modern machinery from Japan, England and Switzerland,

produces a vast range of yarn counts from 10/s to 40/s. To ensure

consistent quality, spinning laboratory has been equipped with

latest and most modern testing equipment. 60% of yarn

production is exported to Hong Kong, Japan, Korea, Malaysia and

Thailand. The rest of capacity is used for in house production of

fabric, converted subsequently into apparel.

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Yarn

MTM Spinning is capable of producing more than 35,000 lbs of Combed &

Carded  ring spun yarn from 6/s to 40/s count. Spinning is equipped with state of

the art machines from Japan, UK and Switzerland.

MTM yarn is famous for its consistent quality because of stringent QC system

and most modern lab equipments.

Knitting

Knitting Department has 16 machines capable of making Jersey,

Pique, and Fleece, Interlock and Rib in addition to the mini

jacquard designs of single knit jersey. The gauge ranges from 20

to 28 for single knit, 20 to 24 for Interlock and 15 for Rib

machines. Most of the machines are equipped with Lycra

attachment. Moreover, it has 9 flat bed machines for collar and

armband making. 100% production is inspected and only ‘A’

grade fabric is transferred to the subsequent operations.

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Fabric

One of the largest Fabric facility in Pakistan having the capability to produce all kinds of

knitted fabrics in 100% cotton & blends.

o Single knit

Single Jersey

Pique

Fleece

o Flat knit

Collar & Cuffs

Flat Knit Panels

o Strippers

Feed Striper

Auto Striper

Engineered Striper

o Double knit

1x1 Rib

Variegated Rib

Interlock

o Textures

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Herring Bones

Pique Jersey

Waffles

o Jacquards

Mini Jacquard

Dyeing, Processing & Laundry

The Processing Department has an installed capacity of dyeing

140 Tons per week. Equipped with these dyeing machines from

Germany, it is capable of dyeing both 100 % cotton and Poly-

cotton blended fabrics. The machine size selection provides

flexibility in dye lot size ranging from 100 Kgs to 1,000 Kgs .

The department has three Santex finishing lines from Switzerland

including hydro extractors, dryers and compactors for tubular as

well as open width fabrics. Moreover state of the art sueding

equipment makes Masood capable of adding value to the delicate

knit fabrics. A separate testing Laboratory with latest equipment

is in place to ensure that the processed fabric quality is

maintained to meet the required parameters of our buyers

Cutting department

Cutting is the first step in production. Here, fabric is cut according

to the customer’s specification. The main objective or aim of this

department is to minimize the wastage of fabric. Now they use

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Gerber Plotter which is new technology to maximize the use of

fabric.

.

Stitching (process flow)

To get maximum production they follow the principle of “Division

of Labor” and principle of convenience. That’s why process flow is

used for stitching. The copy of process flow, which is attached in

annexure, tells how a shirt is stitch (First moon overlock, then

moon attach, then pocket hem, then pocket marking and so on).

Here they attach the identification codes to the garments, which

help in back track system. Quality, which is one of the core

competencies of massood, is maintained by 100% check from

Inline supervisors. These Inline supervisors check the stitching

and plucking, if there is any fault they try to remove it

immediately. If we see the process flow attached we will find four

inspections, at first inspection there is 100% check, at second

there is 62% check, at third there is 64% check and at last which

is inter inspection there is 34% check .

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Garments

mTm is a leading apparel company in Pakistan having expertise &

machinery capable of transforming customer ideas into superior quality

garments, which are taken as the most famous brands in the world.

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Ironing

When stitching is complete these garments are ironed. This

process is of great care because this may damage the fabric. This

is done with the help of steam irons. Inline supervisors work

doesn’t end at stitching. They have to check any possible

damage and the quality of ironing .

Finishing Check

After ironing finishing check is made. This includes three kinds of

checks.

a. Stain

If there are any stains on garment and they are removable

then they are washed with steam and chemicals.

b. Raffu

If there is any small hole then that garment is sent for raffu .

c. Re Stitch

If there is any skip stitch then that garment is sent for Re

Stitch

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.

Packing Accessory Attachment

After final check packing accessories like company stickers,

hang tags are attached.

Packing

In this stage garments are packed according to customer’s

requirement. Inline supervisors check whether packing is as

per requirement or not.

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MISSION STATEMENT

“Our mission is to be a dynamic, profitable and growth oriented

company by providing good return on investment to its shareholders

and investors, quality products to its customers, a secured and friendly

environment place of work to its employees and to project Pakistan’s

image in the international market”.

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Company Vision ;

"Our vision is of continual improvement and sustained growth,

and of a family of workers. Who are given the best

compensation benefits and working conditions in the region. In

this respect, mTm continues to emphasize the need to invest in

and develop its most precious resource - its human capital.

mTm continues to provide training courses and self-

enhancement opportunities for all our workers".

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CORPORATE OBJECTIVES ;

1. Maximization of wealth of shareholders.

2. To increase market share.

3. To achieve customer satisfaction.

4. Making arrangements towards achieving total quality

standards.

5. To get growth through professional management.

6. To reduce the cost of production up to minimum

level.

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7. To control the atmosphere by installation of latest

machinery.

8. To continue to improve/ surpass past achievement.

9. To lead the local manufactures.

10. To attain a good word of mouth and to make

company image stronger in the international market.

Organizational Structure:

Main Offices:

Head Office

Universal house, west canal Road Faisalabad - Pakistan.

Ph : +92 41 8734910

Fax : +92 41 8731180

Mills (Yarn & Fabric Division)

32 K.M. Sheikhupura Road, Faisalabad - Pakistan.

Ph : +92 41 4689470

Fax : +92 41 4689469

Garments

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Sargodha Road, Near Police Station, Faisalabad – Pakistan.

Ph : +92 41 8787931-34

Fax : +92 41 8781361

Lahore Office

16/3A, Eden Homes, Main Gulberg , Lahore – Pakistan.

Ph : +92 42 5753620

Fax : +92 42 5753629

Karachi Office

1-C, 13th Commercial Street, Phase 2, DHA. Karachi – Pakistan.

Ph : +92 21 5800583

Fax : +92 21 5800584

Comments on the Organization Structure:

Masood Textile established in 1994. Founder of the Masood Group is Ch. Nazir

Ahmad (late). MTM was a private organization in start. In 1999 Masood Textile

turned from a private company to a public limited company and listed in KSE.

Masood Textile strive to lead in creating, developing and manufacturing of knitted

apparel products right from basic to highly fashioned garments thus responding

to emerging trends in the industry. They translate conceptual ideas of our

customers into reality and shape them through its technical bent and professional

acumen. The team here strongly believes that Customer satisfaction is the

essence of business today. mTm has the technology with expertise,

products with knowledge and most importantly

the right mindset to achieve total

customer satisfaction.

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DEPARTMENTS/WORKING OF VARIOUS DIVISIONS

Human Resource Department

The human resource is very strong in Masood. Like any other

human resource department, the objective of this department is

to maximize the efficiency and satisfaction of employees. They

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adopt al those practices which can help them in achieving their

goal

Functions of HR Department

Functions of the HR department in Masood Textile Mills can

broadly be differentiated into these points:

1. Recruitment

2. Training and Development

3. Compensation & Benefits

4. Motivation

Recruitment

The HR department does the recruitment. Recruitment is done

basically for two classes. Class S is for labors and supervisory

level while class M is for Management. For recruitment in both

classes Job Analysis is done that where new vacancies can be

arranged or where there occurs a vacancy for a job and what kind

of qualified person is required for the job. Human Resource

Department does Strategic Planning for new jobs in Masood. Jobs

are normally announced after every six months. Selection is done

in two ways. Number one is that Internal Sourcing is done

according to the capability and performance of worker. External

recruitment is done for the officers. For recruiting officers they

take test and interview, and the succeed ones are appointed as

Management Trainees. After a period of three months they are

again evaluated the persons who qualified become the

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permanent members of Masood’s Team. The workers are hired on

trial. If there work is satisfactory then they are selected.

HR department also keep the personnel record either the worker

is a contractual or permanent worker. A profile of every worker is

maintained in the computer based Human Resource Management

System (HRMS).

Training and Development

Although it is the function of Human Resource Department but in

Masood they have recently establish a separate Training &

Development Department. The responsibility of this department

is to train new employees and to develop a clear career path for

the employees. This department also arranges training for

employees who are promoted to next level. After providing

complete training the work of this department doesn’t end. They

take feed back to evaluate the results of training.

Compensation and Benefits

The HR department carries out wage surveys. HR department

checks pay and other legal benefits and benefits like overtime,

bonus, leave encashment, gratuity, subsidized mess and vehicles

are also under HR department.

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Motivation and Performance Appraisal

HR department makes the performance appraisal and is

responsible of giving increments or rewards to the workers. For

creating motivation and competitive environment among the

workers certain incentives are given:

1 .Cash prizes

2. Trophy

The best inline inspector receives a cash prize. To create a

competition between workers a trophy is given to the best

stitching hall on the criteria selected by the management, every

month. O.35% of the P.O. is given to the best stitching hall. This

0.35% is distributed among all the personnel, belonging to

different departments, for their contribution e.g respective

merchandiser, PPC staff, Cutting persons etc.

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Administration Department

The activities performed by this department include:

1. Control of the admin. office

2. Gate office

3. Transport

4. House keeping

5. Utilities

6. Security

Gate office

This office is required to Gate office works under the

administration department. They are required to submit the

reports of all goods going out of the factory or which are

received. The admin manager sings gate passes.

Transport

To control the facility of transport and maintenance of the

transport of the transport vehicles is controlled by the admin

department.

House Keeping

To arrange the facility of accommodation for the employees is

also done by the administration department. The wear and tear

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of the factory building is also taken care by the admin

department

.

Utilitie

The utilities such as kitchen budget, electricity, maintenance of

automobiles and the machines is also done by the administration

department. Other responsibilities are like the civil kind i.e.

sanitary, boiler, and carpenter for the repair of the furniture.

Security

Masood has a tight security system. There is an efficient security

crew working in the Masood Textile Mills. The security is in the

control of the security in charge who works under the admin

manager. Security people check every employee coming in and

going out of the factory for safety reasons

.

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Merchandising department

Marketing manager who directly report to the general manager control

the marketing department. The major responsibility of this department is to

access the customer’s needs and wants and set the products according to

the customer’s satisfaction. Products distribution and promotion are also

the part of this department. This department plans for future market and

maintain strategies for existing markets. This department remains always

in struggle for attracting new customers. The merchandising department

works in the following manner.

Receive development sheet from production planning and control

department.

Pricing from concerned department.

Development of new inquires.

Proto/pattern development.

Fabric development

Lab dips development

Salesman sample if required

Size set in original fabric & color

Pre production approval

Imported accessories follow up

Complete follow up & monitoring of purchase order start from yarn to

shipment.

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Marketing Strategies of MTM

Marketing Department cannot be ignored in any organization.

Because it is the heart & soul of the organizations.

MTM cannot ignore the pivotal importance of this department. The

marketing manager with the Chief Executive officer performed the marketing

activities jointly. They not only promote their department but also visit the

foreign markets to search their new customers .

Marketing Manager performs the following activities,

Look overall problems of the departments and the problems

faced by the customers.

Devises all the marketing related policies.

Delights the customers by solving their problems.

Co-ordinates with the merchandising department.

Checks and observes all the activities of textile sectors

especially keeping focus on the competitors activities.

The marketing department with the help of merchandising

department makes it possible that the order place by the customers

should be completed within specified time.

MTM sell the product with the brand name of the customers.

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Competitive Strategy

Back track system

Masood textile mill is the only mill in Pakistan with latest computerized barcode

system that assures quality in every operation of production from spinning to

packing. Products of each department carry bar code stickers, which bear all the

details and history of the operations of that product. Hence if any problem is

reported, one can trace back the root of the problem and enable to prevent

occurrence of the same in future

.

Vertically integrated operations

Besides, Masood is one of the few fully vertical textile mills in Pakistan having in-

house yarn, knitting, fabric dyeing, processing, laundry and apparel

manufacturing facilities. The vertically integrated operations help Masood in

achieving shorter lead time and greater flexibility to cater the customer’s

demand.

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Customer profile

Masood is proud to work with world’s best labels. This exposure to the brand

labels has been a continuous learning experience for the entire team. Currently,

85% of production is exported to the U.S. while rest 15% to Europe

.

Champion Chaps Calvin Klein Dockers

www.championusa.com www.polo.com www.cklien.com www.dockers.com

GAP Hanes JC penny Levi’s

www.gap.com www.hanes.com www.jcpenny.com www.levis.com

Nautica Polo Polo R.L Russell

www.nautica.com www.polo.com www.polo.com www.russellcorp.com

Speedo Tomy Hilfger

Tom Tailor Vantage

www.speedo.com www.tomy.com www.tom-tailor.com

www.vantageapparel.com

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Sears Jockey Guess Foot Locker

www.sears.com www.jockey.com www.guess.com www.footlocker.com

Stitching diversity

With over 2700 stitching machines, Masood is producing about 10 lacks pieces

per month of fashion garments like Polo, Rugby and Henley shirts along with

basic garments like Crew Neck Tee, Sweat shirt, Boxer shorts and Bikinis.

Masood has in-house embroidery facility equipped with Tajima machines.

Experienced professional management

The Masood team comprises a balanced blend of experienced professionals

including over 200 MBA’s, Textile engineers and industrial engineers. Masood is

WRAP certified and ISO 9002 certified as well.

Aggressive R&D facility

A very aggressive and creative R&D department is always busy in exploring

innovative product development enabling Masood to be ahead of many in the

field.

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FINANCE DEPARTMENT IN MTM

In my opinion there is a stock and inventory controlling department at Mills

division of MTM, which is named as finance department or I can say that it is only

a part of accounts department not the finance department .

This department has three sections.

-Spinning

-Knitting

-Dyeing

Spinning:

Following reports are prepared in the spinning section:

-Daily Cotton Stock Report

-Daily Yarn Stock Report

-Daily Management Report

This report is reported to the Finance Manager (Head Office and Mills), Accounts

Manager (Head Office), and Accounts Officer (Head Office) for the submission to

the Textile Commissioner (Bureau of Statistics, Lahore).

Knitting:

In the knitting section following reports are prepared;

-Date Wise Yarn Receiving Detail

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-Date Wise Yarn Returned from Outside

-Date Wise Yarn Returned to Outside

-Date Wise Grey Fabric Received from Party

-Date Wise Yarn Issuance Detail

Dyeing:

In the dyeing section, the reports prepared are as followed:

-Party wise receiving summary

-Party wise issuance summary

-Party wise production summary

-Party wise issuance summary

Besides, above mentioned reports following documents are also maintained;

-Vouchers

-Bill for Daily Expenses

-Payment to Employees

-Collection and Deposit of Cash from Head Office

Some documents used in Finance Department:

Goods inspection Report/Receipts notes (GRN):

Issued for purchased items by purchasing department. These documents sent to

Head Office and they clear the bills means payment of these bills. Store

department saves these documents by using some oracle program.

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Application form for Leave Encashment:

Total leaves 32

Annual leaves 14

Sick leaves 08

Casual leaves 10

Calculation of leave encashment

Total salary / 30 * No. of leaves spare= Amount payable

Social security contribution of employees

Some portion of total salary separated for social security contribution. Benefit for

employees. In MTM 8.83% of total salary is contributed for social security. Rs.20

is deducted from employee’s salary and balance is provided by the owner.

Over time

Payment of over time is given to employees by using following formula.

Net salary / 26 / 8 * No. of hours= Over time pay

4000 / 26 / 8 * 31=596.15

Total working days in a month =26

35

Total working hours in a day =08

Contribution

Employee’s contribution Rs.20

Employer’s contribution balance (remaining)

Guzted day’s amount

Basic pay / 26 / 8 * 24 No. of Guzted days.

Net pay = 4000

Basic pay =Net pay * 2 / 3

Basic pay =4000 * 2 / 3=2666.66

Basic Pay =2666.66

Gusted day =03

Basic pay / 26 / 8 * 24 * No. of guzted days

2666.66/ 26 / 8 * 24 * 3= 923 Net payable

Final settlement

Salary + Benefits – Deductions = Net Payable

Final clearance form

Employee must be cleared from the following departments,

Head of department

Main store

Office mess / canteen

Security

Administration

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Human resource

Information technology

Petrol and maintenance allowances are given to different persons according to

their designation. Whether they have company’s provided conveyance or

personal. Bills issued by petrol pumps, CNG and maintenance are attached with

summary. Then checked the date, serial no, vehicle no, limit of petrol, limit of

maintenance charges etc. then these bills checked by account officer etc. then

send to head office they also checked it and send amount to MTM Apparel in the

shape of cheques , from cashier specific persons get their allowances.

Following limits provided ,

Purchase order

It is Prepare by purchase departments. This form includes quantity, description,

rate, total amount issue date and delivery requirement date, terms of payment

etc

Bill

It is Issue by the selling company (packages club). It includes the quantity and its

price per unit.

No. of units * price per unit = total amount including sales tax.

Journal voucher

When we purchases on credit then journal voucher is necessary and we make

the following entry.

Store-code A/c

Sales tax A/c

Packages club A/c

Narration: being store purchased bill received and adjusted

Transactions

Daily

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Fortnight

One month

One year

Types of vouchers

1 Cash voucher

Cash payments voucher

Cash receipts voucher

2 Bank voucher

Bank payments voucher

Bank receipts voucher

3 Journal voucher

Sales voucher

Purchase voucher

Parties exempted from deduction of withholding tax u/s 153(5) of income tax

ordinance 2001.

Cement, petrol, some computer accessories.

When the invoices are more than fifty thousand then for the purpose of refund we

make payment within 180 days. Payment evidence is necessary for tax refund.

Payment evidence includes cheques and challan number of tax.

Debit note -------- issue against purchase return

Credit note-------- issue against sale return

In case of 15% excess booked in purchases will be refunded after

purchases.

In case of work in process things we can claim 15% GST.

In case of end user cannot claim 15% GST. E.G tyres, AC etc.

Entry at the time of purchases:

Expense/store –code A/c

Sales tax A/c

To party A/c

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Entry at the time of sale:

Party A/c

To sales A/c

To sales tax A/c

After 15 days when we return file:

Sales tax A/c (out put)

Less: sales tax (in put)

=refundable sales tax

Entry:

Sales tax refundable A/c

To in put/out put tax

When tax department rejected some tax then entry:

Rejected sales tax A/c

To refund receivable A/c

When sales tax refunded:

Bank A/c

To refund receivable A/c

Sales tax return form includes,

1. Sales tax registration number.

2. N.T.N.

3. Name

4. Tax period.

5. Excess amount of input tax carried forward from the preceding tax period,

if any

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6. Unclaimed input tax from immediate three preceding tax period (excluding

column #05)

7. Sales

8. Purchases

9. Arrears/additional tax/recoveries pointed out by audit.

10.Penalty for late filing.

11.Net amount payable including arrears additional tax and penalties.

FORWERDING DEPARTTMENT

EXPORT

Process

Firm must be registered in export promotion bearue. If a firm has national tax

number then that specific firm can export its products without registration.

Then company prepares its product’s samples and shows to different buyers who

want to purchase it. If the samples are up to the mark then they give sample

order (trial order) to the company, the order consist of minimum quantity means

only to check that the product is according to the sample. Buyer check the

quality, color, dye, reactive dye, yarn dye, shrinkage, weight in grams, size, and

freight charges etc. Freight charges mean who will bear the charges buyer or

seller and what its effect on price per unit. Negotiations on price, when the price

settled the buyer place the order. To fulfill an order, the meeting held between

managers to check the requirement.

Arrange yarn

Knitting

Dyeing

Drying

Cutting

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Stitching

Labeling

Pressing

Packing

Packing list

Shipment

Prepare document, one copy send to Air port or sea port. Custom officers check

these documents for clearance.

Air way bill ----------- in case of air port

Bill of lading ----------in case of sea port

Term of shipment

1. Freight on board (FOB)

Freight charges from Faisalabad to Karachi are bear by factory other

charges bear by the buyer.

2. Carriage and Freight (C & F)

From factory to buyer’s destination port charges born by the selle

3. Carriage, Insurance and Freight (CIF)

From factory to buyer’s destination port charges born by the seller

including insurance expenses .

4. Cash against documents (CAD)

Payments at sight means when documents received by buyer then

payment will be made .

Letter of Credit (L/C) types

1. L/C at sight

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When seller submits documents into the bank then payment will be

made to buyer .

2. 30 days from shipment date.

Payment will be made after 30 days of submission of documents.

3. 60 days from shipment date.

Payment will be made after 60 days of submission of documents.

4. 90 days from shipment date.

Payment will be made after 90 days of submission of documents

.

5. 120 days from shipment date.

Payment will be made after 120 days of submission of documents

Mode of shipment

1. By Air.

2. By Sea.

3. Trans shipment.

Types of documents

1. Custom clearance documents.

Original commercial invoice (6 copies)

Original packing list (6 copies)

Form “E”.

Narcotics certificate (if shipment by Air)

2. Buyer’s requirements.

Commercial invoice.

Packing list.

Bill of lading / Air way bill.

Certificate of origin.

Issued by Chamber of Commerce for Gulf countries, it is

necessary for exporting products to Gulf countries.

Single country declaration.

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We give guarantee to buyer that the material used in this

product was made only in Pakistan .

Multiple countries declaration.

For the finished goods or completion of goods we used

imported material from different countries.

Annexure iii.

Used for Panama, we send the Air way bill / shipment bill by

mail to buyer, then buyer check it and send back to seller by

mail. These documents send to chamber of commerce for

stamping and again send to buyer by mail, and then he

approved it. It is used for custom clearance in the buyer’s

country .

Quality control report.

Buyer’s agent checks the quality and other documents etc.

Inspection certificate.

This certificate is used only for export in Canada.

Canadian custom invoice.

General system of preference (GSP).

It is used for European countries. It is used for custom

purpose in the buyer’s countries .

Container sizes

20 feet (standard)

40 feet

40 feet high cube.

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PPC (production planning & control)

PPC is the bridge between merchandising and production department. PPC

department plays an indispensable role in a garment manufacturing company. Its

responsibilities start from the negotiation between merchandiser and customer

and ends on the shipment of PO. This department works on the basis of 3M’s

(Man, Machine, and Material).

Functions of PPC:

Optimization of resources (man, machine, material)

Costing research and development(R&D)

Purchase order receiving

Capacity

Time line (time, action)

Fabric accessories (stitching and packing)

Fabric demand plan (lead time)

Accessories demand plan

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Production Merchandising

PPC

Costing-:

This is the most important responsibilities of PPC department .It is

responsible for accurate costing of production. The price of the single accessory

can’t be ignored .On the basis of cost, given by PPC, merchandiser negotiates

with the customer. This is crucial point in getting the purchase order (PO) the

main things that are taken into account during costing and pricing of product are

as follows.

1 :Fabric Cost (Yarn Dying and Knitting)

2 :Stitching Cost

3 :Packing and Accessory Cost

4 :Overhead Financial Charges

5 :Margin and Rejection

6 :Freight on Board

Production Allocation:

PPC fulfill this responsibility by making a schedule, which deals it

when and from where fabric is received, when cutting is done to which production

unit order will be process, and so on.

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PPC Profile:

A PPC profile is prepared which contains all the specifications that has been

demanded by customer and distributed to all the concerned departments in

which whole execution of order is done. Following points are included in this

profile.

1 :Purchase Order

2 :Buyer Name

3 :Description

4 :Quality

5 :Color and size Breakdown

6 :Time Line

7 :Size Chart and cutting Design

8 :Packing Program

9 :Accessory Sheet

10 :Fabric Order Confirmation Sheets

11 :Action Calendar

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Production Department:

There are total 12 stitching units. Orders of different companies are processed in

different units according to their skills. They operate under the objective of “Zero

Defect”. Here quality control is merged with the production.

Observations:

As practical work is done in units so we observed a lot of

implementations of our subjects. Here what we like most is the TQM

implementation. Each and every employee is conscious about Quality and they

all work as a team to maintain it. Quality is the core competency of Masood

textile mills that differentiates Masood from its competitors. The main tasks of

production department are Quality maintenance and on time delivery.

Process:

Production process Is as follows:

1:Stitching (Process flow)

2:Ironing

3:Finishing checks

4:Packing accessory attachment

5:Packing

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Stitching (Process Flow)

To get maximum production they follow the principle of “Division of Labor” and

principle of convenience. That’s why process flow is used for stitching .The

process flow which we saw for a specific garment tells how a garment is

stitched (first moon over lock, then moon attach ,then pocket hem, then pocket

making and hem and so on).

Here they attach the identification codes to the garments, which help in back

track system. Quality which is the core competency of Masood textile mills is

maintained by inline supervisors. These inline supervisors check the stitching

and plucking and faults is removed immediately.

Ironing:

After completion of stitching the garment is ironed. This process is of great care

because this may damage the fabric .This is done with the help of steam irons.

Inline supervisors work doesn’t end at stitching .They have to check any possible

damage and the quality of ironing.

Finishing Checks:

1: Stain

2: Rafu

3: Re Stitch

Packing Accessory Attachment:

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After final check packing accessories like companying stickers,

hanging tags are attached.

Packing:

In this stage garment is packed according to customer’s requirement.

Finishing Supervisors check whether packing is as per requirement or not.

Process Observations:

Cutting (machine arrange, SAM, chain flow, man power)

Induction (barcodes, bundles)

Sewing (inline inspection for quality control)

Clipping

Pressing

Final inspection

Super Final inspection

Packing

Internal audit

External audit

X factory

In line inspection most of the faults are ruffo, puckering, stain and alteration.

Same inspection is performed in final and super final inspection. The method of

final inspection is clockwise.

Types of machines:

(1) Lock stitch (L/S)

Single Needle

2 needles

(2)Over lock (O/L)

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4 Threads

3 Threads

(3)Flat lock (F/L)

Minicylender

Cylinder bed

Flat bed

Feed of arm

Auto trimmer

Feedo

flat lock 4 needle

)4 (Zigzag

)5 (Button attach (B/A)

)6 (Button holes (B/H)

)7 (Bar take

Operations of some Machines:

Single needle L/S:

Placket making, collar attach, cuff thoka, side went, half moon attach

4 thread O/L:

Neck rib, shoulder attach, cuff attach

Main parts of machines:

Gauge set:

-Pressure foot

-Needle plat

-feed dogs

-Needle bar

Thread tension post:

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it is used for losing and tighten the thread.

Stitch dial:

Increase or decrease the stitches.

Brands:

1 (Yamato (F/L, O/L)

2 (Pegasus (F/L, O/L)

3 (Siruba (L/S, B/H, O/L)(

4 (Juki (L/S, B/A, B/H, Feedo)

5 (Mitsubishi (L/S)

6 (Taking (Feedo)

7 (Toyota (O/L)

8 (Kansai (F/L 4 Needle)

Flow Of A Polo Shirt: machines

(1) Half Moon cutting O/L

(2) Main label L/S

(3) Moon attach 2 NEEDLE L/S

(4) Shoulder attach O/L

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(5) Shoulder attach top stitch F/L

(6) Placket A L/S

(7) Collar thoka L/S

(8) Collar attach O/L

(9) Collar top stich L/S

(10) Neck B L/S

(11) Cuff cutting O/L

(12) Cuff attach O/L

(13) Cuff top stitch F/L

(14) Sleeve attach O/L

(15) Sleeve top stitch F/L

(16) Body hem F/L

(17) Side seam O/L

(18) Side vent (check) L/S

(19) Kaj

(20) Button attach

(21) Bar take

(22) Inter inspection

(23) Clipping

(24) pressing

(25) Final inspection

(26) Super final inspection

Specs of garments:

(1) straight shoulder

(2) across shoulder

(3) sleeve opening

(4) sleeve inseam

(5) sleeve length

(6) sleeve length from HPS

(7) sleeve hem height

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(8) upper arm/bicep

(9) across chest

(10) chest

(11) side seam

(12) bottom

(13) neck back drop

(14) arm hole straight

(15) arm hole curve

(16) neck front drop

(17) sleeve length from CBN

(18) shoulder slope

(19) waist

(20) collar bad width

(21) placket opening

(22) placket length

(23) waist band width

(24) side seam excluding waist band

(25) side seam including waist band

(26) leg opening

(27) leg hem height

(28) fly opening

(29) crotch seam

(30) full seam

(31) front rise

(32) back rise

(33) Thai

(34) hip

Garment types:

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Tops:

(1) Crew neck

(2) Polo

(3) Rugby

(4) Hood

(5) Qzp

(6) Full zipper

(7) Raglan

(8) Tank top

(9) Henley

)10(High neck

)11(Mock neck

)12(V-neck

)13(V-insert

)14(Sleeve less

Bottoms:

(1) Pant

(2) Short

(3) Boxer brief

(4) Boxer short

Accessories, which are used:

Labels:

The following labels are used during preparing any garments

a) Main label:

These labels mostly show company brand name.

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b) Size label:

It shows size of the garment whether it is (S, L, M, XL, XXL).

c) Care label (side label):

In this label the instructions are mentioned like washing.

d) Fire label:

The purpose of this label is don’t go near fire because fabric

Has polestar.

e) Patch label (company promotion label):-

This label shows the company name, it is mostly attached

on the back side of the pent or trouser. It is seamed on all sides.

Type of tapes:

a) Feedo tape:

It is making with body fabric and cutting in unit and attached with

feedo machine.

b) Twill tape:

It is specially knitted tape.

Other accessories:

Draw cord

Fusing

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Types of threads:

a) Cotton thread

b) Diner

c) Intermingle

Buttons:

a) Straight

b) Cross

Needles:

PARTS OF NEEDLE ARE

(1) Shank

(2) Needle Tip Hole

(3) Needle Eye

(4) Scarf (Cut)

(5) Taper

(6) Needle Blade

(7) Groove

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QUALITY ASSURANCE;

Quality:

It is a standard achieved by process to render defect free product.

Quality control:

Implementation of process to achieve the required standard.

Quality assurance:

Preventive measures taken to make defect free product.

Responsibilities of quality assurance:

There are three responsibilities of quality assurance.

(1) Monitoring the system

(2) evaluating staff involved

(3) assuring quality of product

Working:

Quality is the major concern, to maintain the quality; there are quality checks at

every stage of manufacturing starting from raw cotton, yarn, fabric, processing,

cutting stitching and end at packing. In apparel division, fabric is first checked

and when find per customers requirement then it is issued to cutting department.

Here fabric is checked for shrinkage, finished g/cm2 etc.Then next check point is

in quality pieces move to the stitching units. The next check point is in production

department. In production department there are inline inspectors for inspection

on the spot and now Masood has hired an expert Quality Assurance team from

Sri Lanka they are responsible for assuring the Quality measures of each

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Garment. Internal and External Audits are one of the most important

checks .Internal auditors are from Masood’s end and external auditors from

buyers end.

Corrective and Preventive Actions:

The corrective and preventive actions are very strong in

Masood.Strong preventive actions are designed to ensure the quality and

avoid any kind of faut.But if any thing goes wrong then relevant person

immediately take corrective action.

1: Preventive Actions:

a) Fabric Audit

b) Cutting Audit

c) Inline Audit

d) Measurement Audit

e) Finishing Audit

f) Final Good Audit

Corrective Actions:

a) Warnings

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b) Demotions

c) Dismissals

CLOSE LOOP CORRECTIVE ACTION (CLCA):

Inspection

Solution (preventive measure) Identifying the defect

Root cause of defect

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Sale & employees volume :

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FINANCIAL ANALYSIS

We are analyzing the company’s current position to assess that the company

is how much efficient. We calculate vertical & horizontal analysis and then

to different ratios to assess our findings and then compare it with industry’s

past data. We start our analysis from the auditor’s report to know that is the

company following the generally accepted accounting principles. Because a

GAAP are basics to know that the company financial reports are fair and

giving right information to its users. In the auditors report the auditors

opinion shows

“THE COMPANY HAVE BEEN DRAWN UP INCONFIRMITY WITH

COMPANIES ORDINANCE 1984 ”|

The companies financial statements are,

Balance sheet

Profit & loss account

Cash flow statement

Owner equity statement

We firstly calculate the vertical and horizontal analysis to know the

companies past and current trend.

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Short Term Liquidity Position

Short term debt paying ability is Important to all users of financial statements. If the entity can not maintain a short term debt paying ability it will not be able to maintain a long term debt paying ability nor it will be able to satisfy its stock holders. Profit ability of the firm does not determine the short term debt paying ability. In other words using accrual accounting, the entity may report high profits but may not have the ability to pay its current bills.

The account R/A Turnover indicates the liquidity of the R/A, means that how many tines our R/A is converted into cash in a year.

A/R Turnover = Net Sales Avg. Gross R/A

Interpretation

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In 2006 account receivable turnover ratio is 3.4624 which shows the decreasing trend and in this way our sales rapidly decreases and concludes that liquidity position weakened.

Liquidity ratios

To know that the company is how much is efficient to pay its short and long term obligations. It is necessary to calculate the liquidity of the firm as when analizing the short term debt paying ability of the firm. We find a close relationship between the current and the current liabilities. Generally the current

liabilities will be paid with cash .

Current Ratio

Interpretation

For many years the gridline for the minimum current ratio has been 2. As the company’s current ratio is declining in 2006 due to increase in current liabilities with

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compare to 2005. So, we conclude that company are so much successful in staying above a current ratio 2 and indicates an incline in liquidity of the firm.

Quick ratio;

The asset test ratio relates the most liquid assets to current liabilities. Inventory is removed from current assets when computing the acid test/ quick ratio. The usual guideline for the quick ratio is “1” a comparison should be made with firm past acid

test ratios and with major competitors .

Quick Ratio

Interpretation ; The efficient quick ratio “1” company meets this standard .

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As the company quick ratio is declining leads to more bankruptcies and great risk for creditors and investors.

Profitability Ratio :

Stockholders derive revenue in from of dividend. Profitability is the ability of the company to generate earnings dividends are pay out of profit/ earnings. Further, increased profits can cause a rise in market price, leading to capital gain. Creditor’s also attracted towards profit because it is a source of debt coverage.

Net Profit Ratio

Interpretation

Net Profit Ratio in 2006 decrease to 2.483% which shows that our net Profit decrease with compared to 2005 that concludes the profitability of the

company decline which shows the bad image to the creditors .

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Return on Equity Capital

Return on Total Equity measures the return to both common and preferred shareholders. It means once one dollar invested by the shareholder earns how much net income. In this ratio equity means both common shareholders and preferred shareholders

Interpretation :

In 2006 return equity is 40.556% which shows that investors invest 1 rupee in the company and gets profit of 40.556% which is an increasing trend with compared to the past data. This shows the profitability increases .

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Return on Assets :

Return on Assets measures the ability of firm to utilize its assets to create profit by comparing profits with the assets. How efficiently the company yses its assets and earn from them.

Interpretation:

Due to capacity company assets shows low return which is not suitable for company as we shows that in 2006 its goes to 1.866% which is 4.91% in 2002 which is a great decline and shows the low profitability ratio.

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Earning Per Share

The amount of income earned on a share of common stock during an accounting period is the earning per common share. One share of common stock ears how much dollar of income in a year is the interpretation of Basic Earnings per Common share

Interpretation:An increasing trend looks in 2006 regarding earning per share its means a share holder invest 1 rupee and earned 4.06% it when compared with 2002 shows Decreasing trend but an increasing trend looks when 2004 and 2005.and increasing the investor position in the company

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SWOT ANALYSIS

Managers of MTM always review the mission and goals and then they scan the

internal and external environment to identify elements that influence the

organization performance. To determine such elements SWOT analysis is

conducted .

SWOT is a method that helps managers identify the organizational strengths (S)

Weakness (W) Opportunities (O) Threats (T).

Strengths

Latest machinery

The mill has latest machinery, which they have imported from foreign

country to meet the international quality standards

ISO 9002 Certificate

The company has got ISO 9002 certificate which insure the quality

standards.

High Financial Resources

The company has high financial resources.

Strong market image

The company has strong market image in foreign market. The buyer can

purchase same product from the competitor at low price but due to strong

marker image they purchase from MTM.

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Proven management

MTM has proven management. All management is very competent. They

know how to satisfy their customers.

Products innovation abilities

The management has product innovation abilities.

Weaknesses

Centralized management

The management at MTM is centralized. All type of decisions is made at

top level. Due to centralized, delegation of power only managers have no

authority to make decision.

High cost of production

The cost of production increased, such as material labor quota charges

and other production accessories.

Small international market share

The MTM has small market share at international level.

No motivated staff

The staff is not properly motivated due to lake of incentives and less

wages offered by the company.

Less promotional activities

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The company has very less promotional activities in local an international

media.

Opportunities

Potential in market

Entering new markets

Addition new product line

Faster market growth

Potential in market

Threats

Political instability in country

Economic instability

Though competition

Adverse government policies

Easy access of buyers in world markets

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Conclusion & Recommendation for Improvement :

Conclusion-:

Following conclusion is based on my learning during the stay period of Masood

Textile.

The overall acceptable environment but needs to be

improved.

Decentralization of authority.

Good image in the international market.

Good reputation of product in the mind of customer.

Well defined and systematic recruitment criteria.

Lack of authorities in the hands of Managers.

Highly Qualified Management.

Masood is one of the best apparel producer in Pakistan,

most probably number 1 in PAKISTAN and number 3rd in

ASIA.

Masood has one of the best Oracle data base & I.T System

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Recommendation-:

Masood should try to reduce per minute & per unit cost too

meet the buyer’s requirement regarding low prices.

Masood should try to reduce the financial cost that normally

incurred to meet the huge level of business volume.

Need to develop a culture of cooperation and teamwork. For

this purpose a revolutionary commitment from higher

management is required at this time, otherwise mtm may not

be able to cash the benefits of quota elimination.

The misbehavior of some responsible managers with the

working force is creating unrest and feelings of being treated

like slaves among the workers. For the purpose of

improvement in this sector the line management should be

trained and must be educated how to behave the workforce.

Employees should be encouraged to come up with

revolutionary thoughts.

Proper training at each level should be given to the

employees.

Special incentives should be given to the good employees

for motivation and encouragement.

Need to improve fabric to induction process to avoid air

shipments.

The biggest problem of this time is needed to improve proper

execution of customer purchase orders.

Need to improve utilization of available capacity to reduce

per unit cost.

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Need to improve cost of white elephant of apparel division

i.e. high rejection, excess cutting, excess consumption of

accessories, air freight, unabsorption of fixed overhead,

overtime etc.

Glossary

GSM Gram Per Square Meter

P.O Purchase Order

SPI Stitch Per Inch

PPK Product Package

WRAP World Wide Responsible Apparel Process

CBL Central Back Length

CBN Central Back neck

Wales vertical Lines

Cordses horizontal lines

Lead Time Order to Shipment Time

CPO Cutting Planning Officer

CPI Cut Panel Inspection

Splices A separator between the fabric plies which are cut

PPC Production Planning and control

GGT Garments Gerber Technology

R&I Receive and Issue

Scarf cut

GRN Goods Received Now

IGP Interword Gate Pass

OGP Outword gate Pass

FID Fabric Inspection Department

IE Industrial Engineering

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