kalash internship report

7/23/2019 Kalash Internship Report

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INTERNSHIP REPORT

KLASH Private LimitedSpecialization: MBA (Banin! " #inance$

S%&mitted to:

Chairman

Department of BusinessAdministration

S%&mitted &':

Name: Syed Ikhlaq Haider

Roll :AH52279

Re!i)tration :!"#$D"%&9

Mailin! Addre)):

$ikre islami 'ook

(entre marka)i imam 'ar*ahsantt pura dho'i *hat

$aisala'ad

*ontact :"+2!,7%"95%&

Date of Su'mission:

25,"9,2"!&

ALLAMA I+BAL OPEN ,NI-ERSIT. /

ISLAMABA01

By: Syed Ikhlaq Haider


2/90

Acno2led!ement

All the praises are for the almi*hty- A..AH /ho 'esto/ed me /ith the a'ility and

potential to (omplete this Internship report0 I also pay my *ratitude to the Almi*hty for

ena'lin* me to (omplete this Internship 1eport0ords are 3ery fe/ to e4press enormous hum'le o'li*ations to my affe(tionate #arents for

their prayers and stron* determination to ena'lin* me to a(hie3e this o'0

I take this opportunity to re(ord my deep sense of *ratitude and appre(iation to my

Ad3isors for their (onstant en(oura*ement and inspirin* *uidan(e /ith his isdom0

I also appre(iate the (ordial (o,operation from all my (on(ern 6ana*ers in the different

departments of lash 8p3t .td espe(ially 6r0 $arrukh aman 8Dire(tor $inan(e- 6r0

Sayam Altaf A((ounts ; $inan(e 6ana*er for pro3idin* me requisite information and

kno/led*e for (ompilation of my (omplete report0

By Ahsan Adrees Page !


3/90

Brie3 *ontent)

#a*e ature of lash %

Business 3olume 9

#rodu(t .ine !"

Department ; =heir orkin* !2

$inan(e Department +

Stru(ture of $inan(e Department +

A((ountin* ?perations

+7

$un(tions of $inan(e Department

+7 A(ti3ities performed 'y A((ounts Department

&"

Internal Control

&&

$inan(ial Analysis

&7

$inan(ial Statements

&%

1atio Analyses

5"

Hori)ontal Analyses

7!

By Ahsan Adrees Page 2


4/90

@erti(al Analyses

72

?r*ani)ational Analyses 8S?= Analysis

7& Con(lusion

%!

1e(ommendations

%2

1eferen(e and sour(e used

%+

Anne4es

%5

By Ahsan Adrees Page +


5/90

E6ec%tive S%mmar'

e /ere dire(ted 'y our uni3ersity to do the internship of t/o months duration after the (ompletion of

semester0 But I am already doin* o' as A((ounts ?ffi(er in A((ounts and $inan(e department in

.ASH #1I@A= .I6I=D from !st of April 2"!+0 .ASH #@= ltd0 is (alled .ASH shortly0 It

has 'een *ood e4perien(e to /ork /ith the .ASH professionals0 =he purpose to oin the .ASH

/as to *et the e4perien(e and professional skills needed to (ompete in the te4tile se(tor0 I ha3e learned

mu(h a'out the or*ani)ational (ulture- its 3alues- and produ(ts0 Durin* my o' they keep me rotated

and I ha3e 3isited almost e3ery department of .ASH and stri3ed to learn a'out its en3ironment and

(ulture0

.ASH has *ood name amon* the 'est knittin* units in the te4tile industry of #akistan0 .ASH has

esta'lished a *ood ima*e in the international market as /ell0

=he maor (ustomers of .ASH are eor*e- $at $a(e- 6arks ; Spen(er- >=- Ameri(an a*le-

Burton- =es(o ; = /hi(h are internationally re(o*ni)ed 'rands0

China- India and Ban*ladesh are the maor (ountries- /hi(h ha3e dire(t (ompetition /ith #akistan0

Be(ause of quota system the .ASH a((epts limited orders0 =he (ompany manufa(tures the fa'ri(

itself- Dyes the fa'ri(s and yarn on its o/n plants so the (ost of the produ(tion of the (ompany is mu(h

redu(ed0 1a/ material like fa'ri( is produ(ed itself and also dyed itself0

.ASH is ha3in* hi*hly moti3ated employees0 In the mana*ement of the (ompany- mostly the 6BAs

are appointed /ho ha3e the latest kno/led*e of 'usiness administration0

=he (ompany has a 'a(k tra(k system that is 3ery effe(ti3e for the international standards0

lash is IS?,9""!:2""" (ertified 'e(ause of /hi(h (ustomers 'elie3e in the quality of the (ompanyEs

produ(ts0 lash has also /on a num'er of a/ards 'y its (ustomers and it has 'e(ome the 1A#

(ertified0

1A# (ertifi(ation has eliminated any need of audit and also stren*thened (ompanyEs ima*e and

(ustomerEs trust on it0 .ASH has almost 95"" employees0 nittin*- $a'ri( dyein*- Farn dyein*-

Cuttin*- Stit(hin*- $inishin* and #a(kin*- these are the fun(tions /hi(h are performed in .ASH0

.ASH in(ludes these departments- #rodu(tion- ##C- Industrial n*ineerin*- Cuttin*- Guality

Control- Commer(ial- H1 ; Admin- I=- Complian(e- Se(urity- #ur(hases- Guality Assuran(e-

6er(handisin*- A((ounts- In3entory and Audit ; Internal Control0

By: Syed Ikhlaq Haider


6/90

.ASH has adopted sound marketin* strate*ies to (ompete in the international market0 .ASH

manufa(tures almost =rousers- =,shirts- Hooded shirts- S/eat shirt- ip shirt- and ?pen front shirt-

Shorts and Sports /ears0

A little (an 'e said a'out the pri(in* strate*ies of .ASH p3t0 .td0 #ri(in* is done on the 'ases of t/o

3aria'les- fi4ed (ost and 3aria'le (ost0

.ASH e4ports its produ(ts to its (ustomers dire(tly and indire(tly as /ell throu*h intermediaries0

0S0A- 0- Hon* on*- =urkey- S/it)erland- Australia and 0A0 are the (ountries to /hom

.ASH e4ports its produ(ts0

.ASH promotes its produ(ts throu*h tele,mail- international trade fairs and trade ma*a)ines0

.ASH has a stron* (ompetiti3e ed*e o3er its (ompetitors due to hi*hly or*ani)ed 'a(ktra(k system-3erti(ally inte*rated operations- (ustomer profile- stit(hin* di3ersity- e4perien(ed professional

mana*ement- and a**ressi3e 1;D fa(ilities- so(ial and en3ironmental responsi'ilities0

Durin* my o'- after *ettin* orientation from 6r0 =ariq 6ahmood H1 mana*er- I oined A((ounts and

$inan(e department /here I ha3e to deal /ith all departments /hi(h are related to manufa(turin* to

ser3i(es0

I ha3e /orked on nittin* ; Dyein*0 I also ha3e /orked on main store- fa'ri( store and =

8arments er'er =e(hnolo*y for the purpose of their a((ountin* pro(edures and makin* their S?#s0

$or makin* a((ounts of produ(tion departments- I ha3e /orked in (uttin* and indu(tion department0

$or makin* (lear and suffi(ient *rip on all aspe(ts of or*ani)ation (ulture and stru(ture- I ha3e /orked

and *ot /orkshops /ith ##C and I= department0 $or /ork on ##C and to *et 'asi( kno/led*e a'out

arments manufa(turin* I ha3e *ot trainin* /orkshops and le(tures from industrial en*ineerin*

department0 $or seekin* kno/led*e a'out internal (ontrol and audit I ha3e oined trainin* /orkshops

and also *ot /ork e4perien(e from internal audit of lash and 60Athar ; Co0 $or makin* pri(e sheets

and *ettin* kno/led*e a'out pri(in* and marketin* and mer(handisin* te(hniques I /as mo3ed to

marketin* 8mer(handisin* department0

I had fe/ learnin* defi(ien(ies durin* the learnin* pro(ess0



7/90

T4e Te6tile Ind%)tr':

?3er the years- #akistan is said to 'e the sin*le (rop e(onomy i0e0 (otton and te4tile that (laims the

lions share in terms of the (ontri'ution in the national e(onomy of #akistan0

Despite efforts to 'rin* in di3ersifi(ation in (ountrys o3erall e(onomi( *et,up the te4tile se(tor

(ontinues to 'e the most important se*ment of the national e(onomy0 Its share in the e(onomy- in

terms of D#- e4ports- employment- forei*n e4(han*e earnin*s- in3estment and re3enue *eneration

alto*ether pla(ed the te4tile industry as the sin*le lar*est determinant of the e(onomi( *ro/th of the

(ountry0

Despite harsh and hard international e(onomi( (onditions- #akistans te4tile industry has /eathered the

storm 'y (omin* out of the international (risis in a 3ery positi3e manner0

Durin* the year e4ports /ere (ontrolled from fallin* and si*nifi(ant in3estment /as made in 3alue,

added e4pansion0 Besides fall out of the e3ents of Septem'er !!- the implementation of =?s

a*reement- 3arious 'ilateral a*reements ha3e 'een si*ned and implemented0

As a result *lo'al s(enario has (han*ed0 o3ernment and the (orporate te4tile se(tor adusted their

poli(ies to a(hie3e ma4imum 'enefits of free trade0 So- lo(al stru(ture of the (orporate (ulture-

in3estment pattern and fis(al and monetary poli(ies /ere si*nifi(antly (han*ed0

Import =e4tile 6a(hinery and Farn =hread

Import of te4tile ma(hinery and equipment has pi(ked up sin(e 2""& /hen a 'umper (otton (rop /as

har3ested and the =e4tile Industry reaped massi3e profits due to lo/er input (ost0 In the last fi3e years

more than 1s!+ 'illion ha3e 'een in3ested for the import of te4tile ma(hinery and yarn0 .ASH is

By Ahsan Adrees Page


8/90

one of the maor (ustomers in terms of importin* =e4tile 6a(hinery from almost all de3eloped

(ountries like ermany China and $ran(e and importin* =hread Farn from China0

It is e4pe(ted that an additional 1s!" 'illion /ould 'e required for Balan(in*- 6oderni)ation and

1epla(ement 8B61 in this apparel se(tor durin* the ne4t three years for produ(in* superior quality

*arment 'esides se3eral units are in 3arious sta*es of installation in different of $aisala'ad also0

=hese fa(ilities /ould impro3e 3alue,addition in fa'ri(s- 'esides in(reasin* the 3olume of fa'ri(s and

quality *arments e4ports from the (ountry0

=e4tile is the only se(tor /here in3estment has 'een su'stantial and re*ular durin* past three years0

=he most en(oura*in* fa(tor of this in3estment is di3ersity0

=he entrepreneurs- /ho earlier (on(entrated on Dyein* and nittin*- ha3e no/ esta'lished (ompa(t

units addin* state,of,the,art finishin* units and knittin* ma(hines to add 3alue to their produ(ts0 =helatest addition to this is the settin* up of denim (loth produ(in* units and slu' yarn (lothin*0

At present- the e4port (ompetiti3eness of the te4tile industry (an 'e impro3ed 'y a**ressi3e marketin*

te(hniques and quality impro3ements /hi(h ha3e to 'e taken (are of mi(ro,le3el that is ea(h te4tile

unit should make its o/n independent efforts to sell its produ(ts in different international markets0

All the indi3idual te4tile units should implement the IS? 9""!:2"" pro*ram for quality standard and

IS? !&""" for en3ironmental standards to (ounter the threat of *lo'ali)ation0

Hi)tor' o3 Kla)4 5ro%p

In !999- 6r Ashfaq takes the first professional step in the life of his father /ho is the founder of lash

*roup0 6r0 Ashfaq and 6r0Shfiq helped his father 'y the formation of an industrial (o,operati3e 'ank

in !999 alon* /ith the de3elopments of 1a'ia trust hospital0 akakhel *hee mills and a flyin* trainin*s(hool /ere esta'lished in !99&0

=he maor a(hie3ement 'y this *roup /as .ASH 8p3t- .ASH 2- .ASH +- .ASH &- .ASH 5

/hi(h /as esta'lished in 2""7 /ith ! dyein* mills and more unit of .ASH Has the te(hnolo*y



9/90

/ith e4pertise- produ(ts /ith kno/led*e and most importantly the ri*ht mindset to a(hie3e total

(ustomer satisfa(tion0

=he .ASH roup 6ian 6uhammad Ashfaq the (aptain of this splendid ship ha3in* around +"

(ompanies on 'oard0

.ASH roup of (omprises of te4tiles

=his is story of su((ess throu*h sheer hard /ork and an undaunted spirit of enterprise0 Be*innin* /ith

a C6=- he soon 'ran(hed out te4tiles0 After almost t/o de(ades a (entury of undaunted su((ess-

.ASH *roup is amon* the leadin* 'usiness houses of the (ountry 0

By Ahsan Adrees Page %


10/90

Nat%re o3 Kla)4

.ASH#ri3ate .imited is leadin* or*ani)ation in knit /ear industry0 =o produ(e quality

*oods and that too on time- you need a *ood produ(tion fa(ility- (apa'le of takin* on any (hallen*e

thro/n at you0 In this re*ard- .ASH 4ports possesses the 'est infrastru(ture that has the a'ility and

potential to *i3e you quality produ(ts0 lash manufa(turin* pro(ess has 'een 3erti(ally inte*rated to

fa(ilitate all the pro(esses in3ol3ed in *arment manufa(turin* under one roof0 =his ena'les us to

redu(e the time spent in (ompletin* your orders0

All ma(hines are the latest a3aila'le in the market- and /hene3er required- .ASH e4port has ne3er

shied a/ay from pur(hasin* the most modern equipments0 All our di3isions are equipped /ith the

latest equipments to maintain the hi*h quality standards that /e ha3e set for oursel3es0

nittin*

Dyein*

$a'ri( Dyein*

Farn Dyein*

Cuttin*

Stit(hin*

m'roidery

#rintin*

ashin*



11/90

B%)ine)) -ol%me

Business 3olume in terms of (ompanyEs Sale for the last fi3e year is as under:

B%)ine)) -ol%me 789 7897 7899 7898 788;

Sales !-"5!-25-7&9 %+7-+92-59% 25-"+!-299 5+-2+-5& &%5-%7-2+5

By Ahsan Adrees Page !"


12/90

*omment)

In the a'o3e ta'le- there are sho/n the re(ords of sale of last fi3e years- from 2""9 to 2"!+0

=he (ompany has in(rease its sale (ontinuously o3er the years- nearly dou'le 'usiness in 2"!+ as

(ompared to 2""90

Prod%ct Line

=rousers

=,Shirts

Hooded Shirts

S/eat Shirt

ip Shirt

?pen $ront Shirt

Shorts

=ennis Shirt

>i*ht ear

Sports ear

6enEs ear

.adies ear

Children ear

By Ahsan Adrees Page !!


13/90

By Ahsan Adrees Page !2


14/90

Departments and their orkin*

0epartment) o3 KLASH 5ro%p

As I ha3e dis(ussed earlier that .ASH *roup is a (orporation ha3in* different 'usiness unit and ea(h'usiness unit has its indi3idual /orkin*0 a(h unit has its o/n different departments /hi(h are

responsi'le for the /orkin* on 'ehalf of the mana*ement0=he departments /hi(h are of strate*i( importan(e for .ASH #ri3ate limited are

Human 1esour(e Department

#ayroll ; a*e Department

6arketin* Department

6er(handisin* Department

1esear(h ; De3elopment Department

$inan(e Department

6IS Department

4portJImports Department

#rodu(tion- #lannin* and Control Department

$a'ri( Department

nittin* Department

Dyein* Department

Cuttin*

Stit(hin*

#rintin*

Guality Assuran(e department

Internal Control ; Audit Department

All these departments are of strate*i( importan(e and /ork (ross fun(tionally- the /orkin* of

one department affe(t the /orkin* of the other department and in this /ay the /hole (orporation

/ork0 ?n 'roadly 'asis the .ASH has 'een di3ided on t/o *rounds i0e0 ser3i(es departments and

produ(tion department0 In ser3i(es department- there are four further departments that are ser3i(es and

(omplian(e department- admin department- human resour(e department- 6IS department0

hile in produ(tion department- there are further lists of department /hi(h are usually there to

support the produ(tion of the or*ani)ation0 In produ(tion /in* the important departments are

mer(handisin* department /hi(h is responsi'le for sellin* of the produ(tion- produ(tion plannin* and

(ontrol department /hi(h is responsi'le for plannin* of the produ(tion and the ra/ material as /ell0

Guality assuran(e department is also there to ensure the quality of fa'ri( and yarn0 #ur(hase

department is there to ensure to pro3ide the a((essories for the produ(tion like fa'ri( 8Can3as- ean-

By Ahsan Adrees Page !+


15/90

popline- /o3en- or Cham'ery- 'uttons- stit(hin* material- )ips et(0 $or international (lient e4port

department is there /hi(h ensures the international 'oarder poli(ies are 'ein* follo/ed 'y the

or*ani)ation and the 3iolation of these poli(ies are not 'ein* done0 In this /ay- the /hole (orporation

/ork0 In my further dis(ussion I /ill 'riefly e4plain all of these departments0

H%man Re)o%rce 0epartment

.ASH is one of the leadin* manufa(turin* units in #akistan that has a lar*e num'er of

employees0 eepin* in 3ie/ the present trend in the field of 6ana*ement as /ell as the requirement of

the quality (ertifi(ation or*ani)ation .ASH separately de3eloped its human resour(e department

/hi(h /as /orkin* under admin department earlier0 =he 6ana*ement at .ASH 'elie3es that it is

3ery important for e3ery or*ani)ation to de3elop a /orld (lass Human 1esour(e department to harness

the skills and kno/led*e of their people to a(hie3e e4(ellen(e in produ(t- pro(edures and quality

systems0

=he Human 1esour(e Department at .ASH has 'een formed at the end of 2"" to a((omplish

international quality standards at e3ery le3el0 =he department is pro3idin* support to top le3el

mana*ement in re(ruitment- sele(tion- (ompensation as /ell as in the field of =rainin* and

De3elopment0 =he fun(tions /hi(h Human 1esour(e department (urrently perform at .ASH are

1e(ruitment ; Sele(tion

Compensation 6ana*ement

=rainin* and De3elopment

#erforman(e Appraisal

As the maor time period I ha3e passed in .ASH0 I /as in linked /ith human resour(e department so

I ha3e a lot of kno/led*e a'out this parti(ular department of the (ompany and in this report /ill *i3e

you a more detail look of this department as (ompared to the other departments0 In 'roader 3ie/

human resour(e department has not most modern pra(ti(es /hi(h support this department in order to*et its real o'e(ti3e0 6ana*ement usually took this department as an e4pense and (ost on the

or*ani)ation0 In order to (ope /ith this e4pense department- a lot of other responsi'ilities ha3e also

'een allo(ated to this department /hi(h is a(tually not the responsi'ility of this department 'ut the

in(um'ents of H1D must 'e o'eyed0 $or e4ample a H1 mana*er has nothin* to do /ith payroll 'ut at

By Ahsan Adrees Page !&


16/90

.ASH H1D and pay roll /ork (ross fun(tionally and pro3ide support to the pay roll department as

to de(rease the 'urden from the payroll department0

H%man Re)o%rce 0epartment P4ilo)op4'

.ASH roup has formed H1 department in re(ent years so as to pro3ide a sound and

(ompetiti3e human (apital0 =hey 'elie3e that their H1 /ould pro3ide a (ore (ompeten(y throu*h

trainin* and de3elopment of ne/ and untrained employees in a more effi(ient /ay0

HR O&


17/90

#%nction) o3 H%man Re)o%rce 0epartment

Human 1esour(e department at .ASH perform a'out all the important fun(tions re*ardin*

the human resour(e0 sually the 'est of the pra(ti(es are 'ein* used in the .ASH re*ardin* the

Human 1esour(e0 =he maor fun(tions /hi(h are 'ein* performed in the .ASH *roup are

1e(ruitment

Sele(tion

=rainin* and De3elopment

#erforman(e appraisal

1etainin* and 1e/ardin*

Recruitment

1e(ruitment strate*y of .ASH is to re(ruit a pool of e4perien(ed and qualified staff so as to sele(t

the 'est from them0

Internal Recr%itment

All the employees (an apply to any post /ithin the ?r*ani)ation 'ut they ha3e to *o

throu*h all the sele(tion pro(edures0

If an employee is raduate and he has & years of internal /ork e4perien(e- then he /ould 'eequi3alent to a post *raduate /ith no e4perien(e0 And if an employee has 2 years of e4ternal

e4perien(e and ! year of internal e4perien(e- then he is (onsidered as 2 years of internal e4perien(e0

E6ternal Recr%itment

=o rehire the employees for orker to Assistant 6ana*er #osition- the (on(erned

dire(tor /ould appro3e the appli(ation0 hile on the other end for mana*ers and a'o3e positions-

C? /ould appro3e the appli(ations for the hirin* of the employees0

Recruitment Procedure

$rom re(ruitment to the sele(tion- Human resour(e department need to perform a 3ariety of

steps in order to *et the most suita'le (andidate /hi(h (an fulfill the future need of the employer0



18/90

$rom the o' openin* of a parti(ular o' to the final sele(tion- the pro(ess of re(ruitment re3ol3es

around the three stake holders0

Head of (on(erned department

6ana*er Human 1esour(e

Super3isor of (on(erned department

In order to make a suita'le sele(tion- initially the human resour(e department plays its role and sele(ts

the suita'le (andidate for the o' openin* and after that (on(erned H?D and super3isor take the

de(ision0

! =he Head of Department 8H?D sends a (ompleted mployment 1equisition $orm to

H1 alon* /ith spe(ial requirements0

2 H1 in3ites and s(reens the appli(ations and short list the (andidates0+ At least 5 appli(ations for ea(h post are re(ruited in order to sele(t from the 'est possi'le talent

a3aila'le0

& .ASH uses the follo/in* re(ruitment methods:

a Ad3ertisements on noti(e 'oards of the ?r*ani)ation

Selection

hile *oin* for sele(tin* the suita'le (andidate- after *atherin* a lar*e pool of (andidate-

different sele(tion tools are 'ein* used 'y the 6ana*ement0

=est oralJ/ritten

Inter3ie/

6edi(al e4amination

@erifi(ation of pre3ious employment re(ords

#referen(es and Gualifi(ation (he(kin*

mployment ?ffer

#ro'ationary #ro*ress 1eport

6edi(al 4amination is 'ein* (arried out 'y the Do(tor appointed 'y the or*ani)ation0 But in a(tual

the medi(al test and 3erifi(ation of the do(uments do not take pla(e in .ASH 'ut it is /ritten there in

the sele(tion pro(edure of .ASH 4ports .imited0



19/90

Training and Development

.ASH 'elie3es that the trainin* of employees not only polish their skills 'ut also train them

for their o' requirements in a more effe(ti3e /ay0 $or this purpose they train and de3elop their

trainers first- so that they (ould identify the trainin* needs and (ould de3elop the other employees for

the 'etter o' performan(e- =rainin* >eed Identifi(ation form for a *roup of people has 'een atta(hed

in appendi4 +- /hile for indi3iduals =>A is atta(hed in

=rainin* is usually (ondu(ted at the /orker le3el 'y their (orrespondin* super3isor0 It is one of the

dra/ 'a(k in the poli(y of .ASH that no trainin* is there for mana*erial le3el or ad3an(e le3el0

Ho/e3er for /orkers follo/in* types of trainin* (an 'e (ondu(ted 'y proper analy)in* the need fortrainin*0

Ko' Des(ription

Guality =rainin*

ork Instru(tions

Corre(ti3e =rainin*

Health and safety

=he use of In House =rainers sa3e up the (ost /hi(h is a*ain 3ery 'enefi(ial for the (ompany0 =he

Duration of the trainin* is +" minutes and usually a super3isor under *o3ern of H1 mana*er train the

/orkers in *roups of &",5"0 After this e3aluation is 'ein* done 'y the mana*er that trainin* *i3es the

required result or not0 It is /orth notin* that no dou't all these pro(edures are /ritten in the H1

manual 'ut unfortunately- in real pra(ti(e no su(h thin*s are there0

Performance Appraisal

=he performan(e appraisal system de3eloped 'y the human resour(e department of

.ASH is used for the helpin* of employees rather than ud*in* the employees0 =he maor fo(us of

performan(e appraisal system is to Kud*e the /orkJ'eha3ior- not the person0

.ASH (onsiders that an effe(ti3e #erforman(e Appraisal system is a positi3e and a (onstru(ti3e

(ommuni(ation and presen(e of in(um'ent at the time of appraisal is a'solutely ne(essary0

6ana*ement of this or*ani)ation 'elie3es that su((ess of an or*ani)ation is dependant upon the

By Ahsan Adrees Page !%


20/90

su((ess of its employees0 =he *ro/th of an or*ani)ation is refle(ted in finan(ial results and the

finan(ial *ains (an only 'e possi'le if employees perform /ell0 =he employeesE performan(e leads to

the su((ess or failure of the or*ani)ation0 =he de(ision of su((ess or failure on the o' (an 'e made on

the 'asis of appraisal0 It is a *au*e to measure the le3el of su((ess of employees0 #eople /ant to kno/

/hat is e4pe(ted of them- ho/ they fit into the or*ani)ation and ho/ /ell they ha3e performed in

(arryin* out their duties0 It is strate*i(ally important as a de3elopment tool for (oa(hin* and

(ounselin* the employees for 'etter performan(e0 Ho/e3er- in order to a(hie3e its intended o'e(ti3es-

the performan(e appraisal system should 'e fair- equita'le- transparent and (learly relatin* to the

requirements of the o'0 =he pro(ess of performan(e appraisal must 'e as o'e(ti3e as possi'le- and

must 'e (arried out only 'y properly trained appraisers /ho are fully a/are of the strate*i( importan(e

of #erforman(e Appraisal0.ASHEs performan(e appraisal system /here it is 'enefi(ial for the or*ani)ation on the other hand it

is equally important for the employees as they (an *et a lot of 'enefit if they perform /ell in the

or*ani)ation0 So- performan(e appraisal system is of strate*i( importan(e for the or*ani)ation like-

#ro3ides in(enti3e to impro3e 'y (onstru(ti3ely pointin* out an employeeEs stren*ths and /eaknesses

Identifies trainin* and de3elopment needs

Identifies talent and *ro/th potential to put it to most effe(ti3e use

liminates une3en standards of appraisal

Steers the a(ti3ities of employees 'y identifyin* *oals and standards of performan(e

Per3ormance Apprai)al Met4od

H1 Department sends forms to the Head of Department 8H?D in the first /eek of the month

in /hi(h the appraisal is due0

Appraisals are (ondu(ted ointly0 =he 1eportin* ?ffi(er of an employee (ondu(ts the appraisal

inter3ie/ and fills out the form0

Both reportin* offi(er and employees si*n the appraisal form0

=he employee may note any disa*reements /ith the reportin* offi(er a'out hisJher performan(e on the

form0

=he Heads of rele3ant Departments return the form to the H1 Department /ithin the ne4t /eek0

*riteria o3 Per3ormance Apprai)al



21/90

=he #erforman(e Appraisal Criteria is mu(h *eneral 'ut /ith the (onsensus of reportin* offi(er

as /ell as super3isor and in(um'ent follo/in* thin*s need to 'e measure0 At .ASH super3isor or

immediate 'oss pro3ide the rele3ant information re*ardin* the in(um'ent0 $ollo/in* are the elements

/hi(h need to 'e measure0

#lannin* and Control

A(hie3ement of =ar*ets

Cost Cons(iousness

Communi(ation Skills

De(ision 6akin*

=he a'o3e (hara(teristi(s at o' are *raded as follo/in* and then on four pointsE s(ale e3aluation of

the in(um'ent (an 'e done0L4(ellent 8& points

L?utstandin* 8+ points

Lood 82 points

LSatisfa(tory 8! point

=otal #oints a(hie3ed M 8& 4 N O 8+ 4 N O 82 4 N O 8! 4 N M N J "

1atin* M =otal #oints A(hie3ed N J " 8!"" M N P

Rewards and other enefits

?ne of the poli(ies of human resour(e is to re/ardin* of su(h employees /ho /ork /ell in the

or*ani)ation this re/ard (an 'e intrinsi( or e4trinsi(0 Intrinsi( re/ard (an 'e in form of re(o*nition or

(ertain non monetary 'enefits /hile in (ase of e4trinsi( finan(ial 'enefits are 'ein* *i3en to the

employee /ho perform /ell in hisJher o'0 =here is some of the detail of re/ardin* for the employees

/ho performs /ell throu*h out the year or in (ertain quarter0

#un(tualityJ1e*ularity

>um'er of Fears of Ser3i(e

By Ahsan Adrees Page 2"


22/90

Maretin! 0epartment

Introd%ction

=he marketin* department must a(t as a *uide and lead the (ompanys other departments in

de3elopin*- produ(in*- fulfillin*- and ser3i(in* produ(ts or ser3i(es for their (ustomers0

Communi(ation is 3ital0 =he marketin* department typi(ally has a 'etter understandin* of the market

and (ustomer needs- 'ut should not a(t independently of produ(t de3elopment or (ustomer ser3i(e0

6arketin* should 'e in3ol3ed- and there should 'e a meetin* of the minds- /hene3er dis(ussions are

held re*ardin* ne/ produ(t de3elopment or any (ustomer,related fun(tion of the (ompany0

1einfor(e the idea amon* your employees that marketin* is a team effort0 Indi3iduals may ha3e their

o/n *oals and priorities- 'ut if they dont also (onsider the *oals and *reater need of the (ompany-

they may hinder efforts and make youEre (arefully planned marketin* efforts fail0

In short- the marketin* department studies the market and the (ustomers- determines the 'est /ay to

rea(h those (ustomers- and /orks /ith the rest of the (ompany to help determine the ne/ produ(t

needs of the market and represent the (ompany in a (onsistent 3oi(e0>e4t- /ell 'e*in *oin* o3er the steps for puttin* to*ether your marketin* plan0 =his pro(ess in3ol3es

four sta*es of a(tion:

1esear(hin* and analy)in* your 'usiness and the market

#lannin* and /ritin* the plan

Implementin* the plan

3aluatin* the results

By Ahsan Adrees Page 2!


23/90

Maretin! 0epartment in Kla)4

91 STR,*T,RE O# MARKETIN5 0EPARTMENT

Hierarc4' o3 Maretin! 0epartment



24/90

N,MBER O# EMPLO.EES =ORKIN5 IN THE KALSH MARKETIN5

0EPARTMENT

6r0 6uhammad 1ashid is 6arketin* 6ana*er of lash0 =here are almost thirty num'ers of

employees /orkin* in marketin* department0 As .ASH is /orkin* /ith num'er of different 'uyer

so marketin* department is di3ided a((ordin*ly0

Here I listed the 'rands- /hose /orkin* /ith .ASH:

eor*e

6arks ; Spen(er

>e4t

$at fa(e

Brand Allian(e

Ameri(an a*le

=

Chen ?ne

.oyal ; Sons

=es(o

Burton

By Ahsan Adrees Page 2+


25/90

MARKETIN5 OPERATIONS O# KLASH

3ery (ompany needs to mana*e its marketin* a(ti3ities effe(ti3ely0 spe(ially the (ompany

needs to kno/ ho/ to analy)e the market opportunities sele(t appropriate tar*et markets

se*mentin* the market in proper se*ments esta'lishin* the effe(ti3e marketin* mi4 and mana*e

the marketin* efforts effe(ti3ely to fulfill these requirements marketin* department is esta'lished

in almost all /ell,kno/n or*ani)ations0

Maretin! Operation

9$ #oc%) on t4e *%)tomer1

.ASH 6arketers spend time listenin* to their (ustomers 8and prospe(ti3e (ustomers in order to

understand their needs and /ants re*ardin* a parti(ular produ(t or ser3i(e0 Soli(itin* thou*hts and

input from internal stakeholders su(h as Sales and Customer Ser3i(e is also appropriate- as these

departments are typi(ally (losest to the (ustomer0

7$ Monitor t4e *ompetition1

.ASH understandin* the (ompetiti3e /hi(h an important fun(tion of the 6arketin* Department0

$ O2n t4e Brand1

=he per(eptions and feelin*s formed a'out an or*ani)ation- its produ(ts J ser3i(es- and its performan(eis /hat is kno/n as its Q'rand0R >o/ .ASH is tryin* to de3elop its o/n 'rand0 =he 6arketin*

Department is responsi'le for (reatin* meanin*ful messa*es throu*h /ords- ideas- ima*es- and names

that deli3er upon the promises J 'enefits an or*ani)ation /ishes to make /ith its (ustomers0

By Ahsan Adrees Page 2&


26/90

$urthermore- the 6arketin* Department is /ell tryin* for ensurin* that messa*es and ima*es are

deli3ered (onsistently- 'y e3ery mem'er of the or*ani)ation0

>$ #ind " 0irect O%t)ide -endor)1Internal 6arketin* Departments do not (reate ma*i( alone0 =herefore- 6arketin* needs to sour(e and

o3ersee a *roup of outside resour(es su(h as (opy/riters- *raphi( desi*ners- /e' desi*ners- data'ase

spe(ialists- and printers so that a (ompany (an *et the most Q'an*R from its marketin* efforts0

?$ *reate Ne2 Idea)1

.ASH is /ell tryin* to (reatin* (ustomer more and more0 .ASH is /orkin* on this proe(t0

hether itEs (ustomer a(quisition (ampai*ns- keep,in,tou(h pro*rams- ne/ produ(t promotions-

retention efforts- or somethin* in 'et/een- the 6arketin* Department is de3elopin* ne/ ideas that*enerate re3enue for the (ompany0 =his does not mean that the 6arketers ha3e to (ome up /ith e3ery

idea on their o/n ho/e3er- they need to identify- (ulti3ate- and /ork /ith others to e4e(ute pro*rams

that /ill (reate re3enue0

@$ *omm%nicate Internall'1

.ASH 6arketin* Department (ommuni(ates /ith all departments inside an or*ani)ation /hi(h

plays an important role0 Sin(e any employee 8re*ardless of position (an support 8or dama*e a 'rand-

3alue proposition or e3en spe(ifi( pro*ram initiati3es- the 6arketin* Department take responsi'ilityfor distri'utin* information throu*hout the or*ani)ation 8this in(ludes internal edu(ation and trainin*

/hen appropriate0

$ Mana!e a B%d!et1

sta'lishin* and (ommuni(atin* messa*es to the marketpla(e (osts money0 =herefore- 6arketin*

Departments of .ASH is responsi'le for estimatin* the anti(ipated e4penditures asso(iated /ith

marketin* a(ti3ities0 ?n(e set- 6arketers is responsi'le for meetin* all 'ud*et proe(tions0

$ ,nder)tand t4e ROI1

Sin(e marketin* a(ti3ities are an in3estment T an in3estment in time- money- and effort T they

should 'e monitored and measured a*ainst spe(ifi( (on(rete *oals and o'e(ti3es0



27/90

;$ Set t4e Strate!'C Plan t4e AttacC and E6ec%te1

?ne of the key a(ti3ities for a .ASH 6arketin* Department is to inte*rate an or*ani)ationEs *oals-

stren*ths- and (hannels of distri'ution- (ompetiti3e en3ironment- tar*et markets- pri(in*- (ore

messa*es- and produ(ts into one (ohesi3e do(ument kno/n as the 6arketin* Strate*y0 As part of the

strate*y- the 6arketin* Department should also de3elop the list of ta(ti(al ideas su(h as dire(t mail-

print ad3ertisin*- and sear(h en*ine optimi)ation that /ill ena'le the or*ani)ation to (ommuni(ate its

messa*e to (ustomers and prospe(ts0 ith a strate*y and ta(ti(al ideas in hand- the 6arketin*

Department is no/ ready to take on the responsi'ility of e4e(utin* the pro*rams and initiati3es to

dri3e sales and re3enue for the or*ani)ation0

Prod%ct implementation plan

=hese are important points of the produ(t implementation plan:

=he (ompany to *et effe(ti3e and ne(essary de(isions after sharin* ideas of the entire e4e(uti3e

should (all a meetin* for de(ision,makin* purpose0

An effe(ti3e (oordination and relation must 'e esta'lished e3ery department0

It should 'e reali)ed to 'e 3ery (lear a'out the ad3anta*es and disad3anta*es of ea(h strate*y

to take effe(ti3e de(isions a'out its (ontinuity to make an effe(ti3e strate*i( implementation0

=o in(rease the o3erall produ(tion and enhan(e the effi(ien(y of the department0

?ne meetin* should 'e on /eeklyJmonthly 'asis presided 'y mana*in* dire(tor0

4perien(ed ; #rofessional 6ana*ement

A!!re))ive R " 0 #acilit'

A 3ery a**ressi3e and (reati3e 1;D department is al/ays 'usy in e4plorin* inno3ati3e

produ(t de3elopment ena'lin* .ASH to 'e ahead of many in the field0 ?ur keen- e4tensi3e

and a**ressi3e 6er(handisin* team (omprisin* e4perien(ed and trained 6BAEs fun(tions /ith

the (ore o'e(ti3e of renderin* ultimate (ustomer satisfa(tion



28/90

=hrou*h produ(t de3elopment and smooth e4e(ution of orders0 =hey are (apa'le and keen to

meet an a3era*e +U& days lead time for proto samples

Prod%ct Mi6

#rodu(ts of lash =e4tile 6ills are (ottonJ syntheti( fi'er yarn- knitted J dyed fa'ri(s and

*arments0 lash e4ports /hole of its produ(ts to SA- and 3arious other (ountry0 6aor

portion of yarn are used in manufa(turin* pro(ess and surplus is e4ported0

Pricin! )trate!'

Price

#ri(in* is the amount of money or other items /hi(h utility needed to a(quire a produ(t0 #ri(e has

a si*nifi(ant role in the marketin* a(ti3ities of the firm as /ell as the /illin*ness or a((eptan(e of

the (ustomers /hene3er a firm de(ides a'out the pri(in* of its produ(ts it must ha3e some

o'e(ti3es 'ehind re(he(kin* a*ain0

#ri(in* poli(iesJstrate*ies pro(edure of lash

lash is offerin* the pri(e on the 'asis of three strate*ies /hi(h are as follo/s0

Competitive base

Customer base

Product base

#ri(in* is an important fa(tor in the marketin* pro(ess for any (ompany0 =he

pri(in* poli(y of the (ompany should 'e in su(h a /ay that it should produ(e a reasona'le profit

for the (ompany and satisfy the (ustomer /hile (al(ulatin* the pri(e of the (ompany0 Sin(e t/o

fa(tors are 3ery important:

!i"ed cost

#ariable Cost

#i6ed *o)t



29/90

It is that (ost /hi(h remains al/ays same /hether is produ(ed lar*e quantity or lo/ quantity0

So (ompanies al/ays try to use their full (apa(ity of produ(tion 'e(ause /ith in(rease in

produ(tion the fi4ed (ost /ill 'e de(reased0

$ollo/in* are important fa(tors of fi4ed (ost:

$verhead cost

Salaries of staff

-aria&le co)t

It is that (ost /here per unit 3aria'le (ost rises as the quality de(rease0 $ollo/in* are in(ludin*

in the 3aria'le (ost:

cost of raw material

Transportation

Price 3i6in! Strate!ie)

lash sells dire(tory to their (ustomer at their doorstep and then pri(e (omponent are as

follo/s:

$i4ed (ost O 3aria'le (ost O desired profit M pri(e of produ(t

=he profit mar*in depends upon the (ondition of the market0 If market /ill 'e ne/ the pri(e

/ill 'e also ne/ to attra(t the (ustomers and (ompete /ith e4istin* (ompetitors0

#ri(in* 6ethod:

=o set the spe(ifi( pri(e le3el that a(hie3es their pri(in* o'e(ti3es- mana*er makes se3eral pri(in*

method in(lude:

#enetration #ri(in*:

#ursues the o'e(ti3e of quantity ma4imi)ation 'y means of a lo/ pri(e0 It is most appropriate

/hen:

Demand is e4pe(ted to 'e hi*hly elasti( that is (ustomer are pri(e sensiti3e and the quantity

demanded /ill in(rease s(ientifi(ally as pri(e de(laims0

.ar*e de(reases in (ost are e4pe(ted as (umulati3e 3olume in(reases0

By Ahsan Adrees Page 2%


30/90

=he produ(t is of the nature is somethin* that (an *ain mass appeal fairly qui(kly0

0i)co%nt Met4od):

lash usually offered the dis(ount for distri'ution (hannels mem'ers and some other (ustomers0 =hese

se3eral dis(ount-

Guantity Dis(ount, offered to (ustomer /ho pur(hase in lar*e quantities0

Cumulati3e Guantity dis(ount is offer /hen in(rease as the (umulati3e quantity in(rease0

Cumulati3e dis(ount offered to resellers /ho pur(hase lar*e quantities o3er time 'ut /ho do

not /ish pla(e lar*e indi3idual orders0

Seasonal dis(ount is offered on the 'ases that the pur(hase is made and desi*ned to redu(e

seasonal 3ariation in sales0

Cash dis(ount a fun(tional dis(ount offered 'y lash to those (ustomers /ho pay their 'ill

'efore a spe(ified0

=rade dis(ount is offered 'y lash to (hannel mem'ers for performin* their role0

#romotional dis(ount is short,term dis(ounted pri(e offer to stimulate sales0

0irect Maretin! *4annel):

lash dire(tly (onta(t /ith its (ustomers throu*h mail- telephone- and personal (onta(ts and

sell its produ(ts dire(tly to the ultimately 'uyers0

Indirect Maretin! *4annel):

hen it (omes to indire(t marketin* (hannel- distri'ution is made throu*h intermediaries0

lash has its o/n 'uyin* house in - /here its (olle(t all the style of eor*e ; = 'rands and from



31/90

there it distri'ute to market as /ell0 lash also e4ports its produ(ts throu*h many a*ents in some

(ases0

lash is usin* different (hannels of transportation for the distri'ution of its produ(ts like- ships- tru(ks

et(0

*o%ntrie) o3 E6port:

lash is makin* a *ood effort to in(rease the market share0 =oday (ompany is e4portin* its produ(ts to

many (ountries like-

SA

=urkey

S/it)erland

Australia

Promotional Strate!'

6aor e4port of lash is made throu*h =ele,mail ser3i(es0 6any (ontra(ts are settled

throu*h personal sittin*0 lash do not /aste any (han(e to promote its produ(t0 lash parti(ipate in

3arious e4hi'itions that take pla(e under e4port promotion 'ureau in different areas of the /orlds0

lash also take part in /orld trade sho/ for promotin* its produ(ts0 It also sends many

samples to its potential (ustomer0 #romotion is one of the four maor important lements0 =he

main promotion tools are ad3ertisin* and other (ountry 'usiness 1elationship the lash should

ad3ertise its produ(ts not only in the /orldEs trade 6a*a)ine also in national industry ma*a)ine0

=he (ompany has to de(ide ho/ to set the promotion 'ud*et the appropriate 'ud*et approa(h is to

send the (ompany (an afford /ith respe(t to its funds and produ(t0

Indoor Adverti)in!

By Ahsan Adrees Page +"


32/90

lash is ha3in* hi*h profile (ustomer portfolio0 Indoor ad3ertisin* are mostly done

throu*h different e4hi'ition /here produ(t stalls are displayed to attra(t and *ain more (ustomers

around the /orld0

Sale) Promotion

lash is *i3in* different in(enti3es to its 3alued (lients on the 'asis of the 3olume of

orders0 In this /ay- they pro3ide sales dis(ounts from 2P to 5P on spe(ifi( *arments as IE3e

earlier dis(uss in pri(in* strate*y0

O%tdoor Adverti)in!

?utdoor ad3ertisin* is not yet 'een done 'y lash0 But it is ha3in* plan to /ork on it in the

near future0

E6port 0epartment

4port department in .ASH is quite ener*eti( department0 A lar*e num'er of responsi'ilities

and duties are there /hi(h e4port department ha3e to perform0 #ur(hase order is re(ei3ed from 'uyer

throu*h the mer(handi)in* department0 A fa4 messa*e is send to 'uyin* houseJ'uyer for openin* .JC0

4pe(ted Audit dateJtime re(ei3ed and *o,head is taken from (on(erned unit 8mana*er to (arry

shipment0 Arran*ements are made for the transportation to mo3e the (onsi*nment 'y the roadJtrainJair

as per plan0 $unds arran*ement for the transportation and (ustom (learan(e (har*es are also 'een

(arried out 'y the e4port department at .ASH0 Car*o liftin* ad3i(e is fi4ed to (ustom (learin* a*entJ

$or/arderJ =ransportation0 $or/arder J (learin* a*ent make arran*ements for the (ustom (learan(e

and 'ookin* of the spa(e at earliest 3essel0

By Ahsan Adrees Page +!


33/90

=he role of the 4port mana*er is to /ork (losely /ith the mer(handisin* department H?D to

'uild stron* 'usiness relationships /ith (urrent and also prospe(ti3e e4port (ustomers0

#resently .ASH e4port almost 7 (ountries- /ith 'est pra(ti(e only 'ein* operational in a (ouple of

(ountries- /here full marketin* support is in pla(e and (lear e3iden(e e4ists of in(reasin* 'rand

a/areness and stron* *ro/th is 'uildin*0 6any ne/ territories are approa(hin* .ASH to take on the

'rand- so the role is to identify the 'est entry strate*y and partner a(ross ea(h (ountry- and then to

ensure a (lear laun(h plan is in pla(e- /hi(h takes a((ount of lo(al market (onditions0

Re)pon)i&ilitie)=he o' holder at the e4port department has to perform follo/in* duties as /ell as responsi'ilities in

.ASH0

=o de3elop relationship /ith forei*n (lients- pro3ide them opportunity to (ome and 3isit of the

(ompany0

Interpret the port poli(ies and other e4port poli(ies and dis(uss it /ith dire(tors and the top

mana*ement0

6ake proper arran*ement of shipment 'y keepin* in 3ie/ the (ost in(ur or the frei*ht (har*es

in(ur durin* the e4port of material0

orkin* /ith supply (hain department so as to adopt the effe(ti3e route for the e4port of *oods

and materials0

Prod%ction Plannin! and *ontrol 0epartment

#rodu(tion #lannin* and Control 8##C is the ner3ous system of the or*ani)ation and its 'asi(

task is to re(ei3e information from the mer(handisin* department and link it to the produ(tion0 It

in3ol3es the #re,#rodu(tion Analysis to ensure quality and reprodu(i'ility0

By Ahsan Adrees Page +2


34/90

6onitorin* is done for the /hole produ(tion pro(ess and in this /e (he(k out the plannin*

implementation0 If the plannin* is failed- re,plannin* is done for that0 ?ff, the, tra(k and on the, tra(k

plannin* is also done 'y the ##C0 ##C /orks in (olla'orates /ith 1;D department and also *et the

information from the (uttin* unit0 In this Guality #lan spe(ifi(ation- quality- /idth- /ei*ht- dyes-

*au*es and (ounts are mentioned0 ##C re(ei3e $a'ri( Consumption #atterns from the Cuttin*

department and plans that ho/ mu(h fa'ri( must 'e used0

##C has t/o further 'ran(hes

!0 6aterial 1esour(e #lannin*

20 #rodu(tion #lannin* and 6onitorin*

9/Material re)o%rce plannin!

6aterial 1esour(e #lannin* is done for the material pro(urement- like sundries- yarn and

fa'ri(0 It is 'asi(ally done to analy)e that ho/ mu(h is needed- /hat is needed- /hen is needed- /hat

is the (ost of the material and ho/ to a(quire the resour(es0

7/Prod%ction plannin!

It in(ludes the plannin* like the Se/in* #lan 8/e (an also (all it as the 6aster #lan0 Ba(k

ard #rodu(tion #lannin* is done and this #rodu(tion =ime .ine in3ol3es /henEs and /hatEs of the

produ(tion0 Date ise #lans are made from /ork order to deli3ery0

0oc%ment) !eneration in PP*

Plan Accessor% Sheet

By Ahsan Adrees Page ++


35/90

Store #lan (an also 'e (alled as A((essories #lan0 It in3ol3es all the do(umentation a'out the sundries

'ein* used in the produ(tion of the order0 It also in3ol3es the information a'out =hreads- Buttons-

Se/in* and .a'els0 Store #lan is 'asi(ally a Guantity #lan0

D%eing Plan

It is related /ith the Dyein* of the fa'ri( that ho/ mu(h fa'ri( is required for an order- and then it is

(on3erted in to the *rei*h fa'ri(0 It plans for ho/ mu(h dyes and (hemi(als are required0 $or the

pro(urement of the materials- ##C *oes for the pur(hase department0

&"tra Planning

+ , 5P e4tra plannin* is done for the losses0 =here are some 3isi'le losses and some in3isi'le

losses0 @isi'le losses o((ur from (uttin* to shipment0 In3isi'le losses are 'ein* made in Dyein*

pro(ess and $inishin* #ro(ess0 Any e4tra plannin* requires e4tra (ost0 So for the additional plannin*and additional (ost- ##C mana*ers ha3e to *o for the Chief 4e(uti3e0

=he #rodu(tion #lannin* and Control is the ner3ous system of our or*ani)ation and

undou'tedly it is our key su((ess fa(tor0 =he nu(leus of .ASH remarka'le su((ess has 'een its

impe((a'le system0 ##C (ondu(ts detailed pre,produ(tion analysis to ensure quality and

reprodu(i'ility0

#a&ric 0epartment

lash fa'ri( department is playin* an important role0 $a'ri( department is di3ided into three

more related departments is outlined 'elo/:

$a'ri( Department

Farn Department

nittin* Department

Dyein* Department

>o/ I shall dis(uss all these su',departments in detail0

Stitc4in! 0epartment

.AH has i*ht stit(hin* units0

By Ahsan Adrees Page +&


36/90

Stit(hin* department is one of the /ell equipped ma(hines department in the field of the

=e4tile in #akistan thatEs /hy there are most of the loyal (ustomers of the .ASH from all o3er the

/orld spe(ially eor*e- =es(o and Ameri(an a*le0 =hese are the maor ha3e (hain of stores around

the /orld0 72& helpers are daily /a*es /orkin* as quality (he(ker in the /hole stit(hin* department0

+5"" Appro4imately stit(hin* ma(hines in the /hole stit(hin* unit0 3ery ma(hine operator has a

unique no to find out the any type of the fault0

=he o'e(ti3es of the stit(hin* department are

L=he (ost minimi)ation

6inimi)e /asta*e

LBest utili)ation of time

LGuality (ontrol 'y line (he(ker

=ypes of stit(hin* ma(hines

L.o(k Stit(h

LChain Stit(h

L=/in >eedle

Lork Station

LBlind Stit(h

L?3er .o(k

L$lat lo(k

Printin! 0epartment=he #rintin* department of .ASH (omprises of three rotaries- i0e0 1e**ianni- immer ;

Stork0 Alon* /ith theses three rotaries- the printin* department has !5 produ(tion ta'les to fulfill the

produ(tion need of the (ustomers of .ASH0



37/90

=here is a mini samplin* ma(hine for the samplin* se(tion to fa(ilitate their /ork0 =he spe(ifi(ation ;

*eneral points a'out these rotaries are as under:

1e**ianni 6a(hine

immer 6a(hine

Stork 6a(hine:

=he #rintin* department of .ASH is /orkin* at its 'est ; produ(in* really *ood stuff0 After the

printin* from the rotaries- the route of the fa'ri( depends on the dye (lass0

If the rea(ti3e dyes ha3e 'een used- then the fa'ri( /ill 'e taken to first of all A*er 6a(hine ; then

oller Soaper ashin*- then to Stenter finish ; finally to the (alendar0

?n the other hand the fa'ri( treated /ith pi*ment dye is taken to the (urin* ma(hine ; from there it is

taken to the (alendar after the required stenter finish0 >o/ in the follo/in* line- /eEll see the

spe(ifi(ations of the Curin* ; A*er 6a(hines:

Curin* 6a(hine

A*er ; Curin* 6a(hine:

+%alit' *ontrol La&

Durin* the produ(tion- quality (ontrol la' ensures that e3ery /ork has done a((ordin* to the

standards of .ASH0 $ollo/in* (he(ks are made at different departments:

*4ec) 24ile Printin!:

1u''in*

ashin*

Dry Cleanin*

*4ec) a3ter *%rin!:

1u''in*



38/90

ashin*

*4ec) a3ter Stenter Proce)):

.i*ht $astness

Shrinka*e

1u''in*

ashin* 8?ptional

*4ec) a3ter Rai)in!:

Guality (he(k

=he purpose of all these (he(ks is to ensure the Guality of the end produ(t0

+%alit' *ontrol La& Mac4ine):

Cro(k 6eter

#illin* 6a(hine

arment ashin* 6a(hine

Dura ash

as(ator 6a(hine

=hum'le Dryer

.i*ht Bo4

Auto ash

Curin* 6a(hine

#ader

.i*ht $astner =ester

Air #ermea,meter

Data Color

@is(o 6eter

=he a'o3e are the ma(hine /hi(h is used in the Guality Control .a' to ensure the quality at e3ery

step0



39/90

Str%ct%re o3 t4e #inance 0epartment

Hierarc4' o3 #inance 0epartment

By Ahsan Adrees Page +%


40/90

No1 o3 Emplo'ee) in All #inance 0epartment D 8

Acco%ntin! Operation

$ollo/in*s are the a((ountin* operation used 'y the a((ounts department

$ilin*

eneral led*er

Billin*

A((ounts #aya'le

In3entory

Costin*


#inance Mana!er)

A))t1 Acco%ntant)

Acco%ntant)Acco%ntant)

A))t1 Acco%ntant)

A))t1 #inance

Mana!er)


41/90

Cash mana*ement

Bud*etin*

$inan(ial statements

#%nction) o3 t4e #inance 0epartment

Acco%ntin! S')tem

A((ountin* system used 'y this firm is Commer(ial A((ountin*

In Commer(ial A((ountin* System the e4pense of ea(h month is re(orded in respe(ti3e month in

/hi(h these e4penses are in(urred rather than the payment of that e4pense

?n the other hand there is another A((ountin* System (alled Cash A((rual in /hi(h e4pense is

re(orded in that month in /hi(h (ash payment is made rather than e4pense in(urred in any month

#inance S')tem

?n the 'asis of the re(ord pro3ided 'y the a((ounts department- finan(e is distri'uted a((ordin* to the

nature of finan(ial needs

Role o3 t4e #inance Mana!er *4ie3 #inance O33icer

Q=he person /ho mana*es the finan(ial resour(es of a 'usiness is (alled $inan(ial 6ana*er0R

In traditionally- the role of finan(ial mana*er or C$? is kno/n as a((ount mana*er 'ut not as a result

of dramati(ally (han*es in 'usiness operations the fun(tions of the a((ount mana*er or a((ountant has

'een enlar*ed0

By Ahsan Adrees Page &"


42/90

Appro4imately e3ery firm- *o3ernment a*en(y- and other type of or*ani)ation ha3e one or more

finan(ial mana*ers /ho super3ise the preparation of finan(ial reports- dire(t in3estment a(ti3ities- and

implement of (ash mana*ement strate*ies0 At present due to a lar*e usa*e of I0= and (omputers in the

'usiness for mana*in* re(ord and or*ani)e the data the most of the time of the $inan(ial 6an*er J

C$? is spend in de3elopin* and implementin* the strate*ies of their or*ani)ations0

0%tie) o3 #inance Mana!er *4ie3 #inance O33icer

=he duties of finan(ial mana*ers differ /ith their spe(ifi( titles- /hi(h in(lude Chief $inan(e ?ffi(er

; Chief A((ountant0

Chief finan(e offi(ers dire(t the or*ani)ationEs finan(ial *oals- o'e(ti3es- and 'ud*ets0 =hey super3ise

the in3estment of funds- mana*e related risks- super3ise (ash mana*ement a(ti3ities- e4e(ute (apital,

raisin* strate*ies to support a firmEs e4pansion- and deal /ith mer*ers and a(quisitions0

Chief A((ountant dire(ts the preparation of finan(ial reports that summari)e and fore(ast the

or*ani)ationEs finan(ial position- su(h as in(ome statements- 'alan(e sheets- and analyses of future

earnin*s or e4penses0 Controllers also are in (har*e of preparin* spe(ial reports required 'y re*ulatory

authorities0 ?ften- (ontrollers o3ersee the a((ountin*- audit- and 'ud*et departments0

,)e o3 Electronic date in deci)ion main!

A((ountin* soft/are (Oracle$is used to *enerate different reports like *eneral led*er- (ash 'alan(es-

sto(k report payment s(hedule- et(0 throu*h these reports it is possi'le to take de(ision relatin* to any

finan(ial matters0

So%rce) and 5eneration o3 #%nd)

=he maor sour(es of funds for KLASH TEFTILE P-T LT0 are:

Borro/in* from finan(ial institutions

Sale to (orporate se(tor ; open market

So%rce) " 5eneration o3 #%nd) La)t #ive .ear)

So%rce) o3 788; 7898 7899 7897 789

By Ahsan Adrees Page &!


43/90

#%nd) //////R)1 in Million/////

Borro2in!) 3rom

3inancial

in)tit%tion)

2-%+!-"5 -79!-""7 -9%9-&2& !7-%&2-9!5 !2-27%-77+

Recover' 3rom

*orporate Sector

and open maret

a!ain)t Sale

5&-72&-+!! %%-&5-"5! !+7-727-" !9!-9%-9"9 !&-"72-5+2

Total ?C???C;9@ ;?C7?@C8? 9>>C9C88 78;C99C7> 9@C?9C8?

0ata So%rce: lash #ri3ate .td Annual 1eports from 2""9,2"!+

Allocation o3 #%nd)

A3aila'le funds are allo(ated 'y finan(e department to different se(tors like payment to /orker-

payments to 3enders- and payments to 'anks et(0 a((ordin* to time line as per predetermined

=he funds of lash =e4tile is allo(ated on the follo/in* /ay:

Supplies to open market

Supplies to (orporate se(tor

4ports

Allocation o3 #%nd) La)t #ive .ear)

Allocation o3

#%nd)788; 7898 7899 7897 789

S%pplie) to Open

Maret+9-&+%-92+ +-2+-7"5 7!-+!9-95& 7%-9+5-%5! 7-%7+-!!5

By Ahsan Adrees Page &2


44/90

S%pplie) to

*orporate Sector2-!97-5"5 2%-"2-!%! 2%-2++-2!! +9-&!-9" &!-7!!-9%"

E6port) !-"!9-&%% 7-59+-%! !!-%&-%2+ 2-&5"-""" ++-+++

Total @@C@??C;9@ ;;C7>C?@ 999C;;C; 978C>C?>9 99;C79C>7

0ata So%rce: lash #ri3ate .td Annual 1eports from 2""9,2"!+

0e)cription o3 Operation)activitie) per3ormed &' Acco%nt) 0epartment

$ollo/in*s are the operationsJa(ti3ities relatin* to the a((ounts department

!0 =o re(ei3e the pur(hase order from the relatin* department for /hi(h any pur(hase is required

8in (ase of pur(hase of ra/ material20 =o re(ei3e the ser3i(e (ontra(t for any (ommer(ial party from /hom ser3i(es are to 'e

rendered

+0 =o re(ei3e the 'ills of pur(hase or ser3i(es from the parties alon* /ith follo/in*s supportin*

do(uments

&0 ?ri*inal deli3er Chelan from the party /hi(h is pro3ided alon* /ith the deli3ery of *oods

50 In/ard *ate pass alon* /ith store re(ei3in*

0 In3oi(es a*ainst the pur(hase and ser3i(es

70 1e(ordin* of entries relatin* to sale- pur(hase- (ash payments- (ash re(ei3ed- 'ank payments

and 'ank re(eipts et(0

%0 A*in* of the payments a((ordin* to due dates

90 =o prepare payment s(hedule on /eekly and month 'asis

!"0 1e(on(iliation of a((ounts /ith 3enders- suppliers- (on(erned parties and 'anks et(

!!0 =o make payments a((ordin* to the predetermined s(hedule

!20 Computation of salaries and /a*es

!+0 =o (he(k the physi(al sto(k takin* at the end of ea(h month

!&0 =o e3aluate the sto(k in trade

!50 =o make profit and loss sheet for ea(h month

By Ahsan Adrees Page &+


45/90

0e)cription o3 ta)) a))i!ned

$irst of all- the finan(e mana*er QSyed Syam AltafR sended me in PP* departmentfor learnin* that

ho/ an order is initially planned0 6r0 Sohail Ak'ar is ##C mana*er in lash #ri3ate .imited0 He is

3ery (ooperati3e person0 He tau*ht me /ith sympathy that e3ery arti(le 8produ(t has different fa'ri(

requirements to prepare0 =he plan starts from the (ustomers o' order sheet /hi(h ha3e the

information a'out planEs total quantity- produ(t dimensions and shipment date0 =hen ##C

department prepare the GPlan S4eet0 #lan sheet ha3e the information that /hat type of fa'ri( /ill

used- /hat /ill 'e the *ross /ei*ht and net /ei*ht of the produ(t0 Ho/ mu(h /asta*es /ill 'e

(har*ed0 =he ##C department is (har*in* 2 P for solid fa'ri( and + P for striper fa'ri( /asta*e

from yarn to fa'ri( knittin*0 In striper fa'ri(- 'efore knittin*- yarn is sent to dye house for dyin* in

required (olor0 P /asta*e is (al(ulated in this yarn dyin* pro(ess0 =hen fa'ri( is knitted0 After this-e(ru fa'ri( is sent to dyin* department for dyin* in required (olor0 =hen dyed fa'ri( (omes in (uttin*

department- /here fa'ri( is (ut a((ordin* to planEs dimensions0 After (uttin*- ne4t pro(ess is

Qindu(tionR /here default pie(es are eliminated 'efore sendin* these pie(es in produ(tion

department for stit(hin*0 =hen stit(hin* department (on3ert this ra/ material into finished *ood0 All

these pro(ess are monitored and (ontrolled 'y ##C department0 I assist ##C mana*er to make many

plans and (al(ulated se3eral per(enta*es in plans0

hen my department (han*ed and sent me in prod%ction department0 6r0 6una//ar is

produ(tion mana*er in unit num'er !- 2 and 70 After t/o day 3isit of the units he told me ho/ to

prepare produ(tion related reports0 He assi*ned me to prepare G0ail' prod%ction )tat%)1 =his

report is used for assessin* ea(h plan (ondition and /hat is the (ompletion sta*e of ea(h plan0 =he

ne4t report is activit' reportC this report ha3e (omplete information of e3ery a(ti3ity performed in

ea(h plan0 $or e4ample- /hat is (uttin*- indu(tion- shipment- required fa'ri(- re(ei3ed fa'ri(- used

fa'ri(- left o3er QAR pie(es- left o3er QBR pie(es- ree(tion and de3iation pie(es quantity is /ritten on

this report0 GInd%ction reportC this is rather simple report that indi(ates ho/ mu(h daily indu(tion

is re(ei3ed 'y a unit and /hat is the total quantity of indu(tion0I e4amined ho/ a produ(tion unit

re(ei3e indu(tion- ho/ they prepare produ(tion flo/ a((ordin* to operations0 Alon* /ith the

produ(tion- quality (he(kers (he(k the produ(ts after some inter3al /hether produ(ts are stit(hin*

a((ordin* to spe(ks or not0 After the quality inspe(tion (ompleted produ(ts are transferred to

/arehouse for pa(kin* and la'elin*0

By Ahsan Adrees Page &&


46/90

Durin* my /orkin* in e6port department for learnin* that ho/ to e4port the finished *oods to

another (ountry0 6r0 6uhammad ashif is the e4port mana*er in .ASH #@= .=D0 He is 3ery

polite dealin* person0 hen produ(ts are pa(ked in (artoons a((ordin* to tar*et- he (alls the

(ontainer /arehouse department loads the (ontainer and sends it to airport for .ahore- ara(hi-

Islama'ad or $aisala'ad for air shipment and ara(hi 'y sea shipment0 I prepared there GE6port

Invoice)C these in3oi(es indi(ate that ho/ mu(h pie(es of ea(h plan are e4ported and /hat are B#

rates of one pie(e0 =hese in3oi(es also sho/ ho/ mu(h quantity of e3ery plan is e4ported0

Mont4l' #rei!4t ReportC this report summari)es the (omplete e4penses /hi(h in(urred to ship

one plan from or*ani)ation to airport or seaport of another (ountry0=he ne4t report is GE6port Sale)

ReportC this is the summary of e4port in3oi(es that sho/s the (urrent sales (onditiona((ordin* to

'uyers of the or*ani)ation0hen finan(e mana*er transferred me in (ostin* department0 =his is 3ery important department of

any or*ani)ation0 6any reports are prepared in this department0 =he first and primarily report of this

department /hi(h I learnt that ho/ to (lose a plan is GPlan *lo)in! Report1 =his reports indi(ates

that the plan is in profit or loss and /hat are the (auses if plan is in loss0 =his is four pa*es report0

$irst pa*e is summary pa*e ha3in* plan num'er- pi(ture of the spe(ifi( produ(t- order num'er- style

num'er- yarn used- pri(e of the produ(t in QB#R- per(enta*e of the sale- required pie(es- shipped

pie(es- o3er all plan ree(tion per(enta*e- fa'ri( (ost- yarn dyin* (ost- knittin* (ost- trim (ost-

fa(tory o3erheads- eans- felt and du(k fa'ri( (ost- printin* (ost- em'roidery and appleq (ost-

*arment /ash (ost and sea or air frei*ht0 =his pa*e also has *ross profit per(ent- net profit per(ent

and total (ost per(ent0 All these fi*ures are also sho/n 'y pie (hart0 Se(ond pa*e ha3e e4port sales

ta'le- yarn (onsumed- yarn dyed- fa'ri( knittin*- /a*e paid or C6=- (uttin* salary of the plan- unit

salary of the spe(ifi( plan- printin* (ost- eans- felt and du(k fa'ri( (ost ta'le0 =hird pa*e has

*arment /ash and air and sea frei*ht ta'le- (uttin* quantity- indu(tion quantity- ree(tion pie(es and

de3iated pie(es0 $ourth pa*e is 3ery important pa*e ha3in* analysis of the pre (ost and a(tual (ost

in(urred0

GMont4l' Ind%ction Report Is se(ond report (onsist of plan num'ers- per3ious month indu(tion-

(urrent month indu(tion- total indu(tion- C6= rates of e3ery plan- per pie(e (ost of stit(hin*- total

unit produ(tion and total salary of unit employees0 =o prepare this report mostly the data is taken



47/90

from Qdaily produ(tion statusR prepared 'y produ(tion department0 =his report is use for (losin* the

plans0

GMont4l' e6port )ale) is third report /hi(h is prepared for (ross (he(k /ith e4port department0

=his report ha3e in3oi(e num'er- plan pie(es shipped- amount in B# and order num'ers0 ?ne

in3oi(e (an has many orders shipped0 4port in3oi(es are fed a((ordin* to 'uyer- in this /ay e3ery

'uyerEs total sale (an 'e (he(ked0

GPlan Monitorin! Reportis prepared for follo/ up the plans /hi(h are /ork in pro(ess0 =his

report (onsists required pie(es of ea(h plan- (urrent (uttin*- (urrent stit(hin* and (urrent shipment0

sually this report is prepared daily 'asis0 =his report is helpful to kno/ that ho/ many plans are

/ork in pro(ess and /hat is the status of ea(h plan0

G#a&ric and 5arment Re


48/90

o%rnal -o%c4er: Kournal 3ou(her is used to re(ord transa(tions if do not affe(t (ash or 'ankre(eipt or payment0

Ban reconciliation: =his is the se(ond task assi*ned to me0 Sometimes there /as differen(e

'et/een 'ank statement 'alan(e and (ash 'ook of the firm0 In this situation- 'ank re(on(iliation is

3ery important0 =he finan(e mana*er tau*ht me ho/ re(on(iles these t/o statements0

In2ard !ate pa)): I prepared many *ate passes /hen *oods /ere entered in the or*ani)ation0 ate

pass is prepared /hen pur(hased or other *oods entered in firm0

Trail &alance: I prepared trail 'alan(e0 All 'alan(es of led*er a((ounts are summari)es in one

statement that is (alled trail 'alan(e0 =he trail 'alan(e is 3ery helpful for final a((ount preparation0

=he fun(tion of re(ordin* the 'alan(es of a((ounts in this statement is (alled summari)in*0

INTERNAL *ONTROL

Internal Control is any a(tion taken 'y a mana*er to enhan(e the pro'a'ility that esta'lished *oals

andJor o'e(ti3es /ill 'e a(hie3ed0 =he internal (ontrols are needed in all areas of a(ti3ity of the

Company0 =hey help redu(e risks of operations and make a 3ariety of systems a(ross the Company

/ork smoothly0

enerally- the purpose that the Company implements internal (ontrols is to:

V Safe*uard the (ompanyEs resour(es

V nsure the relia'ility of data and informationV #romote effi(ient and effe(ti3e operations

V nsure that mana*ementEs o'e(ti3es are 'ein* a(hie3ed- and

V nsure that operations are 'ein* (ondu(ted in a manner that (omplies /ith the *o3ernin* rules-

re*ulations- poli(ies and pro(edures0

Principle) o3 Internal *ontrol S')tem:

+%ali3ied and Trained Sta33



49/90

In the or*ani)ation a separate human resour(e de3elopment department reesta'lished under the

super3ision of *eneral mana*er 8H010D to ensure the a3aila'ility of qualified and (ompetent staff1

Minim%m =or Load

lash limited 'elie3es to put minimum /orkload on its /orkers0 It has suffi(ient staff for the in time

a((omplishment of /ork0

S%pervi)ion

Super3ision is an important prin(iple of internal (ontrol system- so it ne(essarily maintained at all

le3els in the or*ani)ation0 ?ther persons (he(k /ork of one person0

=ell E)ta&li)4ed Record S')tem

?r*ani)ation has an esta'lished system to maintain its re(ords su(h as #ur(hase 1e(ords- Sales

1e(ords et(0

Internal A%dit

Company has esta'lished a separate internal audit department in order to make the do(uments free

from errors at the time of e4ternal audit0

Rotation o3 0%tie)

=o minimi)e the (han(es of frauds- lash as adopted the poli(y to rotate employees from one pla(e to

other0

Mont4l' In)pection o3 Stoc) " A))et)

At the end of ea(h month the auditors from internal audit department physi(ally (he(k all sto(ks and

assets lyin* in the or*ani)ation0

#ro(edure of monthly inspe(tion Here are t/o (omponents of monthly audit0

V @ou(herin*

=he a((ura(y of audit is (he(ked /ith the help of 3ou(herin* system- /hi(h is an essential element of

auditin* system0

V 1a/ 6aterial

In this phase- 3alue of ra/ material is 'ein* (he(ked0 ItEs

ne(essary to (he(k 'e(ause (urrent assets espe(ially ra/ material may 'e

By Ahsan Adrees Page &%


50/90

o3er3alued0

V $i4ed assets

V #ayment sheets

V Closin* Sto(k

V ?ut Standin* 4penses

V Current assets

V Current .ia'ilities

V Depre(iation

V Cash

V Se(urities

V Bank

0eci)ion o3 0%tie)

In order to maintain the a((ura(y of /ork- e3ery /orker is *i3en a spe(ifi( o' in /hi(h he or she is

spe(iali)ed0

Re)pon)i&ilit' 3or Internal *ontrol

All CompanyEs employees- no matter /hat their le3els- ha3e roles and responsi'ilities to assure that

effe(ti3e internal (ontrols ha3e 'een implemented0



51/90

#INAN*IAL ANAL.SIS

=orin! *apital Mana!ement

Polic' ,)ed &' Kla)4 private

=orin! capital mana!ement in3ol3es the relationship 'et/een a firms shortterm

assets and its short,term lia'ilities0 =he *oal of /orkin* (apital mana*ement

is to ensure that a firm is a'le to (ontinue its operations and that it has suffi(ient

a'ility to satisfy 'oth maturin* short,term de't and up(omin* operational

e4penses0 =he mana*ement of /orkin* (apital in3ol3es mana*in* in3entories-

audits re(ei3a'le and paya'le- and (ash0

=orin! capital Polic'

lash limited is a 'i* firm /ith lar*e 3olume of in3estment and sales0 But /hen

/e (onsider its net /orkin* (apital- it is in positi3e amount throu*h out the years-

/hi(h sho/s that (ompanyEs (urrent assets are more than its (urrent lia'ilitiesand (ompany is enoyin* the 'etter a3aila'ility of (ash to meet its (urrent needs0

$irm fulfill its (ash needs 'y itself and less need to take loan and this step results

in de(reased lia'ilities0 hereas firm in3entory turno3er and re(ei3a'le turno3er

is also sho/in* positi3e trends0

By Ahsan Adrees Page 5"


52/90

#inancial Statement)

Kla)4 Private Limited1

Balance S4eet #rom .ear 788; to 789

R)1 R)1 R)1 R)1 R)1

789 7897 7899 7898 788;

1s0 1s0 1s0 1s0 1s0

A))et)

$i4ed Assets at 0D0@ 9?;C98?C?; 9?8C;C?9 9>?C8@>C8 9>8C?@C7@? 97?C77C@??

*%rrent A))et)

Store ; Spare 2+-%!7-+9% !5-%9-2"2 !"-+22-7!5 -27+-59" 5-5+5-9%

Sto(k In =rade 2!5-%7-79% 7-25!-&+9 &-!52-%&% !-7!2-"%% 5"-257-+9

=rade De'ts !&&-5"5-7" 9-!7-%&7 57-5%%-+&7 22-959-%2 !%-+2-5&!

.oans ; Ad3an(e 2%-"!"-!95 25-&!-+"5 !9-&59-59+ !7-!59-557 !2-+5-&!2

Deposit ; #ayments !-792-9%& !-9"!-&&9 !-%&-+7 !-&7-"2% !-25&-2!

?ther 1e(ei3a'le 27-+""-9! &-%!-++2 7-5!&-!%& !"-+7-% !+-5"+-25&

=a4 refund due from

o3ernment !%-27!-"9+ !2-++9-"2! 9-752-&% 9-&"9-5&7 9-"+2-5+2

Cash ; Bank Balan(e 2!-97"-9& 2-9&%-29& !&-!5-55 !"-+25-59 9-55-2&!

&%!-5+7-"+ 22&-"2&-%%9 !-&"-!77 !+9-%&-!! !!9-%%-2"%

@>8C@>7C@9? >C;@7C>8 99C8?C88 78C778C>7@ 7>?C988C@

*apital " Lia&ilitie)

Share Capital ; 1eser3e 2!5-!!5-&"" !9-27-&%+ !!&-%9+-"&5 !+7-+-77 99-"%7-57+

Share Deposit 6oney 2%-"%7-&!% 2%-"%7-&!% 9-"+&-295 5&-5+7-777 "-+25-+2!

Staff 1etirement ratuity !5-5%+-7+% !2-"92-7!+ !7-"+-75 !&-+2-5&! !"-2+-5&!

7?C@C??@ 7@C>?@C@9> 788C;;9C89? 78@C?89C8;> 9@;C@>;C>?

*%rrent Lia&ilitie)

=rade ; ?ther #aya'le +%"-&%%-&2% !27-%-9!% !!"-"5-25+ 7+-!+-"7 7"-!97-%"&

Current #ortion lon* term

Ad3an(e !"-"""-"""

#ro3ision for =a4ation !-+7-+! +%-9+% 57-7+9 5%+-25 5-25+-2&

9C?@C8?; 9C?8?C?@ 998C9C;;7 C9;C7 ?C>?9C>7

@>8C@>7C@9? >C;@7C>8 99C8?C88 78C778C>7@ 7>?C988C@

0ata So%rce: lash #ri3ate .imited Annual 1eports from 2""9,2"!+

By Ahsan Adrees Page 5!


53/90

Kla)4 Private Limited1

Pro3it " Lo)) A*

#rom .ear 788; to 789

R)1 R)1 R)1 R)1 R)1

789 7897 7899 7898 788;

Sales!-"5!-25-7&9 %+7-+92-59% 25-"+!-299 5+-2+-5& &%5-%7-2+5

.ess (ost of sale9%+-2"2-&%& 77"-"&%-29" 5%-+2!-7& &9%-25%-9+ &&"-+52-9&

5ro)) Pro3it

@C8@C7@? @C>>C8 ?@C8;C?? C@>C;@9 >?C>C?>9

Ot4er Operatin! Income

?peratin* In(ome7;C>>C7>8 C9@C 7?C88C8@9 78C7?@C?> 98C;>C?7

;C?8@C?8? 8C?97C9>@ 9C9@C@9> ?C@79C9? ?@C9;C7;

Operatin! e6pen)e)

Distri'ution Cost

+7-""-%% 2!-+-"&% +2-2&-5! 25-+5%-5% 2"-25-+&

Administrati3e e4penses27-95&-&&7 25-9&5-!9% !%-99-"!% !5-25%-9+ 2"-2+-5%9

?ther ?peratin* 4penses

!-2&+-%7 !-!"-+!& 2-97&-%5 2-"25-+9 !-%"+-25

$inan(e Cost

!-5"%-99 !-&"-9!! !-2%&-7&% !-!25-%7& %5-+2!

@C8C;; >;CC>9 ??C78?C7 >C@C?;> >C9?7C?8

Pro3it (lo))$ &e3ore

ta6ation

7;C9;C?8 78C@C@? 7@C?99C>9 9>C?7C79 9C9@@C@

=a4ation

!"-+59-59" %-2%&-&+7 -!7&-!+ 5-!25-5% +-"2+-52

Pro3it (lo))$ carried to BJS

9CC;9 97C>;C7 78CC78? ;C7C8@ 98C9>C999

0ata So%rce: lash #ri3ate .imited Annual 1eports from 2""9,2"!+

Ratio Anal')i)



54/90

(a$ Li%idit' Ratio)

*%rrent Ratio:

*%rrent ratio D *%rrent A))et) J *%rrent Lia&ilitie)

789 7897 7899 7898 788;

Current Assets &%!-5+7-"+ 22&-"2&-%%9 !-&"-!77 !+9-%&-!! !!9-%%-2"%

Current .ia'ilities +%!-%5-"59 !+%-5"5-%5 !!"-7!+-992 7+-7!9-++2 75-&5!-&2%

1atio M Current AssetsJCurrent .ia'ilities 917@ 91@7 91?9 91;8 91?;

Interpretation:

Normal rate o3 t4i) ratio i) 7:9C 24ic4 i) con)idered 2ell1

Current ratio is a *eneral and qui(k measure of liquidity of a firm0 A relati3ely hi*h (urrent ratio is an

indi(ation that the firm is liquid and has the a'ility to pay its (urrent o'li*ations in time as and /hen

they due0 ?n the other hand- a relati3ely lo/ (urrent ratio represents that the liquidity position of the

firm is not *ood and firm shall not 'e a'le to pay its (urrent lia'ilities in time /ithout fa(in*

diffi(ulties0 Fear 2"!" has 'est ratio from these 5 years

Acid Te)t Ratio +%ic Ratio:

By Ahsan Adrees Page 5+


55/90

Acid Te)t Ratio D (*%rrent A))et)/inventor'/Prepa'ment$ J *%rrent Lia&ilitie)

/ 789 7897 7899 7898 788;

Current Assets,In3entory 2&!-%5!-%&" !&!-"%&-2&% !!"-!&-!& 7!-%7%-&%+ &-"7&-"!


1atio M 8Current Assets,In3entoryJCurrent.ia'ilities 81@ 9187 9188 81; 81?

Interpretation:

$or Gui(k 1atio- the normal ratio i) 9:9

Gui(k ratio is also a qui(k measure of liquidity of a firm0 A relati3ely hi*h qui(k ratio is an indi(ation

that the firm is liquid and has the a'ility to pay its (urrent o'li*ations in time as and /hen they due0

?n the other hand- a relati3ely lo/ qui(k ratio represents that the liquidity position of the firm is not

*ood and firm shall not 'e a'le to pay its (urrent lia'ilities in time /ithout fa(in* diffi(ulties0 2""9 to

2"!2 the ratio is fa3ora'le 'ut in year 2"!+ (urrent lia'ilities in(rease from qui(k assets thatEs /hy in

2"!+ the ratio is unfa3ora'le

=orin! *apital Ratio:

By Ahsan Adrees Page 5&


56/90

=orin! *apital D *%rrent A))et) *%rrent Lia&ilitie)

=orin! *apital 789 7897 7899 7898 788;

Current Assets &%!-5+7-"+ 22&-"2&-%%9 !-&"-!77 !+9-%&-!! !!9-%%-2"%


0Capital M Current assets,(urrent .ia'ilites 99-%"-977 %5-5!9-"++ 55-92-!%5 -!&&-%29 &&-&!-7%"

Interpretation:

>et liquid assets (omputed 'y dedu(tin* (urrent lia'ilitiesfrom (urrent assets

#ositi3e /orkin* (apital means that the (ompany is a'le to pay off its short,term

lia'ilities0 >e*ati3e /orkin* (apital means that a (ompany (urrently is una'le to meet its short,term

lia'ilities /ith its (urrent assets 8(ash- a((ounts re(ei3a'le and in3entory there is hi*hest /orkin*

(apital in year 2"!+

Sale To =orin! *apital Ratio

http://www.businessdictionary.com/definition/current-liabilities.htmlhttp://www.businessdictionary.com/definition/current-asset.htmlhttp://www.businessdictionary.com/definition/current-liabilities.htmlhttp://www.businessdictionary.com/definition/current-asset.html


57/90

Sale To =orin! *apital D Sale =orin! *apital

Sale) to =orin! *apital 789 7897 7899 7898 788;

0Capital M Current assets,(urrent .ia'ilities 99-%"-977 %5-5!9-"++ 55-92-!%5 -!&&-%29 &&-&!-7%"

Sales !-"5!-25-7&9 %+7-+92-59% 25-"+!-299 5+-2+-5& &%5-%7-2+5

1atio M salesJ/orkin* (apital ;1> 98179 1;? 971 ;19?

Interpretation:

It indi(ates the firm a'ility to finan(e additional sales /ith out in(urrin* additional de't0 It is

e4(eedin*ly important to keep the amount of (ash used 'y an or*ani)ation at a minimum- so that its

finan(in* needs are redu(ed0 ?ne of the 'est /ays to determine (han*es in the o3erall usa*e of (ash

o3er time is the ratio of sales to /orkin* (apital0 =his ratio sho/s the amount of (ash required to

maintain a (ertain le3el of sales- in year 2"!" (ompany has *enerated ma4imum sale from the

a3aila'le /orkin* (apital

(&$ Levera!e Ratio)



58/90

0e&t Ratio:

0e&t Ratio D Total 0e&t JTotal A))et)

0e&t Ratio 789 7897 7899 7898 788;

=otal De't +%"-&%%-&2% !27-%-9!% !!"-"5-25+ 7+-!+-"7 7"-!97-%

=otal Assets &"-&2-!5 +7&-92-&7" +!!-7"5-""7 2%"-22"-&2 2&5-!""-%

1atio M =otal De'tJ=otal Assets 81?; 81> 81? 817@ 817;

Interpretation:

A ratio that indi(ates /hat proportion of de't a (ompany has relati3e to its assets0 =he measure *i3es

an idea to the le3era*e of the (ompany alon* /ith the potential risks the (ompany fa(es in terms of its

de't,load0 In 2"!+- the (ompany took hu*e amount of de't as (ompared 2"!2 and 2"!!0 =he amount

of de't in the years of 2"!! and 2"!2 is rather same 'ut in 2"!+ de't amount in(reased rapidly0 In

2"!+ sundry (reditor and ad3an(es from the (ustomers /ere in(reased0

0e&t J E%it' Ratio:



59/90

0e&t Ratio D Total 0e&t JTotal E%it'

0e&t to E%it' Ratio 789 7897 7899 7898 788;

=otal De't +%"-&%%-&2% !27-%-9!% !!"-"5-25+ 7+-!+-"7 7"-!97-%

=otal equity 2!5-!!5-&"" !9-27-&%+ !!&-%9+-"&5 9&-555-%&" 9-2+5-2

1atio M =otal De'tJ=otal equity !77P 5P 9P 77P !"!P

Interpretation:

It indi(ates /hat proportion of equity and de't the (ompany is usin* to finan(e its assets0 Inthe 2"!+- the or*ani)ation has hi*hest amount of total de't as (ompare to the amount of total

equity0 =he years 2"!2 and 2"!! ha3e minor differen(e of de't used 'ut in 2"!+ ad3an(e form

he (ustomers and sundry (reditors /ere in(reased the amount of de't0

0e&t to *apital Ratio

By Ahsan Adrees Page 5%


60/90

0e&t to *apital Ratio D Total 0e&t JTotal E%it'0e&t

0e&t to *apital Ratio 789 7897 7899 7898 788;

=otal De't +%"-&%%-&2% !27-%-9!% !!"-"5-25+ 7+-!+-"7 7"-!97-%"&

=otal equityODe't 595-"+-%2% +2&-!&+-&"! 22&-9&9-29% !7-9!-9! !+9-&++-!""

1atio M =otal De'tJquityODe't &P +9P &9P &&P 5"P

Interpretation:

A (ompanys de't,to,(apital ratio or DJC ratio is the ratio of its total de't to its total (apital- its de't

and equity (om'ined0 =he ratio measures a (ompanys (apital stru(ture- finan(ial sol3en(y- and de*ree

of le3era*e- at a parti(ular point in time0

In year 2"!+ this ratio is hi*her than other years due to hi*h loan durin* this year resultin* the hi*her

ratio in this year0 In years 2"!2 there is less 3alue of de't as (ompared to 2""9- 2"!" and 2"!! due to

/hi(h ratio is 'etter than 2""9- 2"!" and 2"!!0

(c$ Pro3ita&ilit' Ratio)



61/90

Net Pro3it Mar!in Ratio

Net Pro3it Mar!in D Net pro3it J Net )ale988

Net Pro3it Mar!in 789 7897 7899 7898 788;

>et #rofit !%-%+%-9!7 !2-+&9-2+% 2"-++7-2"5 9-727-"+ !"-!&+-!!!

>et Sale !-"5!-25-7&9 %+7-+92-59% 25-"+!-299 5+-2+-5& &%5-%7-2+5

1atio M >et #rofitJ>et Sale 91; 91> 17? 919 718;

Interpretation:

=his ratio is used to e3aluate a (ompanyEs operational effi(ien(y0 =he year 2"!! has hi*hest net profit

ratio0 =he sale *raph is *oin* up/ard and year 2"!2 has lo/est net profit mar*in0 Fears of 2"!+ and

2"!2 ha3e the hi*hest amount of (ost of *ood sold that de(reased the net profit ratio0

Ret%rn on A))et) Ratio:

By Ahsan Adrees Page "


62/90

Ret%rn on A))et) D Net income JTotal A))et)

Ret%rn on A))et) 789 7897 7899 7898 788;

>et In(ome !%-%+%-9!7 !2-+&9-2+% 2"-++7-2"5 9-727-"+ !"-!&+-!

=otal Assets &"-&2-!5 +7&-92-&7" +!!-7"5-""7 2%"-22"-&2 2&5-!""-%

1atio M >et In(omeJ=otal Assets 71;> 17; @1?7 1> >19>

Interpretation:

It measures that ho/ effe(ti3ely a (ompany uses its assets0 In spite of lo/est amount of total assets in

the year of 2"!!- the or*ani)ation used effe(ti3ely and earned more than the years of 2"!2 and 2"!+0

=otal assets of the or*ani)ation are in(reasin* year to year due to in(rease of sale of finished produ(ts0

0% Pont Ret%rn on A))et) Ratio:



63/90

0% Pont Ret%rn on A))et) Ratio D (Net Income J Sale$(Sale Total A))et)$

0%pond Ret%rn on A))et) 789 7897 7899 7898 788;

>et In(ome !%-%+%-9!7 !2-+&9-2+% 2"-++7-2"5 9-727-"+ !"-!&+-

=otal Assets &"-&2-!5 +7&-92-&7" +!!-7"5-""7 2%"-22"-&2 2&5-!""-%

Sales !-"5!-25-7&9 %+7-+92-59% 25-"+!-299 5+-2+-5& &%5-%7-2

1atio M >et In(omeJSale 4 SaleJ=otal Assets 71;> 17; @1?7 1> >19>

Interpretation:

It is used to determine the impa(t of asset turno3er and profit mar*in on profits0 Sales and total

assets of or*ani)ation are in(reasin* /ith the passa*e of time periods 'ut distri'ution (ost and

(ost of *ood sold are in(reasin* year 'y year0 In the last fe/ years the rates of yarn in(reased

rapidly /hi(h in(reased the amount of (ost of *ood sold for stit(hin* *arments or*ani)ations0

Operatin! Income Mar!in Ratio:



64/90

Operatin! Income Mar!in D (Operatin! Income Net Sale)$ 988

Operatin! Income Mar!in 789 7897 7899 7898 788;

?peratin* In(om 29-&&+-2&" +-!7-%+% 25-""7-"! 2"-25-+5& !"-9%&-752

Sales !-"5!-25-7&9 %+7-+92-59% 25-"+!-299 5+-2+-5& &%5-%7-2+

?peratin* In(ome 6ar*in M ?peratin*

in(omJsales 718 81 >188 1 717@

Interpretation:

=his is a ratio- /hi(h is used to measure a (ompanys pri(in* strate*y and operatin* effi(ien(y0 =he

year 2"!! has hi*hest operatin* in(ome mar*in ratio0

Ret%rn on Operatin! A))et):



65/90

Ret%rn on Operatin! A))et) RatioDNet income J Operatin! A))et)

Ret%rn on Operatin! A))et) 789 7897 7899 7898 788;

>et In(ome !%-%+%-9!7 !2-+&9-2+% 2"-++7-2"5 9-727-"+ !"-!&+-!

?peratin* Assets !59-!"5-579 !5"-9+7-5%! !&5-"&-%+" !&"-+5-25 !25-2+2-

1atio M >et In(omeJoperatin* Assets 991 17 9>18 @1; 19

Interpretation:

=his ratio sho/s the position of net in(ome /ith operatin* assets0 ?peratin* assets of the or*ani)ation

are in(reasin* sli*htly in 2"!!- 2"!2 and in 2"!+ up/ardly0 =he or*ani)ation- in 2"!!- has e4(ellent

performan(e /ith operatin* assets0

Ret%rn on Total E%it':

By Ahsan Adrees Page &


66/90

Ret%rn on Total E%it' Ratio DNet income JTotal E%it'

Ret%rn on E%it' 789 7897 7899 7898 788;

>et In(ome !%-%+%-9!7 !2-+&9-2+% 2"-++7-2"5 9-727-"+ !"-!&+-!

A3era*e o/ner equity 2!5-!!5-&"" !9-27-&%+ !!&-%9+-"&5 9&-555-%&" 9-2+5-2

1atio M >et In(omeJA3era*e quity %0%P 0+P !707P !"0+P !&0

Interpretation:

=his ratio sho/s that /hat or*ani)ation is earnin* 'y usin* the total o/nerEs equity0 =he *raph of total

o/nerEs equity is *oin* up/ard0 =he year 2"!2 has lo/est ratio of return on total equity0 =otal o/nerEs

equity is in(reasin* due to in(reasin* in the amount of un,appropriated profit0

5ro)) Pro3it Mar!in:



67/90

5ro)) pro3it Mar!in D 5ro)) Pro3it J Net Sale988

5ro)) Pro3it Mar!in 789 7897 7899 7898 788;

ross #rofit %-"+-25 7-+&&-+"% 5-7"9-55+ +%-+&-9! &5-++&-5&

>et Sale !-"5!-25-7&9 %+7-+92-59% 25-"+!-299 5+-2+-5& &%5-%7-2+

1atio M ress #rofitJ>et Sale @1> 18> ;18 19? ;1

Interpretation:

It is a finan(ial measurement- used to assess a firms finan(ial health 'y re3ealin* the proportion of

money lef

kalash internship report

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