Professional Documents
Culture Documents
INTERNSHIP REPORT ON
CBL
(Crescent Bahuman Limited)
Approved By: Mr. Zahid Ali Submitted By: Muhammad Shahzad Aslam(28ss)
M-Com
Preface
Being aware of the importance of practical training, the Institute of Administrative Sciences, University Of The Sargodha, requires every Master student to go through training for practical purpose as trainee. The internship program is to broaden the vision of practical experiences with theoretical knowledge as it increases ones capabilities to handle problems at various stages and the ability of decision. I tried my best to collect the valuable information and its relevant facts. This report is the result of my internship with Crescent Bahuman Limited. The Crescent Bahuman is deeply committed to organizational objectives that are directly related to its institutional mission of providing high quality healthcare to veterans. These objectives are met in part through a variety of employee, intern, and residency training programs in several departments in the organization. The primary goal of this Internship Training Program is to prepare interns for competent entry into the increasingly complex
Bahuman is that the employer will become part of the organization and they are much sincere with that organization. Interns are expected to learn and demonstrate entry-level proficiency in: 1) psychological assessment, 2) Awarness of the environment of the organization, 3) consultation/ supervision/teaching, 4) professional and ethical behavior, 5) diversity issues, and 6) scholarly inquiry and critical, empiricallybased evaluation of internee and other managerial activity. Interns completing the program should be fully prepared for further permanent training or entry-level professional positions involving organizational treatment, teaching, or research, Our decision to apply at an internship site is an important one -the internship experience often defines the path that a professional psychologists career will take. Please take the time to read the enclosed information carefully. An internship is an opportunity that allows a qualified student to gain professional, supervised experience related to his or her field of interest. Internships are usually completed during the summer and/or semester breaks; however, a local internship could be completed during the semester if the student's schedule allows a sufficient amount of time. All students are eligible to intern, although academic credit depends on the requirements set forth by the employing organization and the student's academic departments. Compen
First of all I am very thankful to Almighty ALLAH who gave me courage and confidence to making this internship project on CRESCENT BAHUMAN Ltd. I am also thankful to my respect senior Mr. RAMZAN who is my best and sincere friend and Senior Accountant in the Crescent Bahuman limited, and who gave me chance and opportunity to make such a professional project, in which I analyze the entire scenario regarding industry and management perspective. He has been a steady source of track throughout the course of this whole internship. His innumerable ideas were precious and gave me with an insight to the path, which was off the beaten track otherwise. I have yet to see the limits of his sympathetic, stamina and altruistic concerns for me. I am especially thankful to our parents, families and friends for giving me the silent support in terms of courage and strength that I needed to accomplish my goals. Words might not be adequate to express my feelings towards them.
DEDICATION
I would like to dedicate this report to my dear parents and respected teachers who guided me through my studying carrier and my still doing their best for me. To be here in this institution at this level I am just because of my parents, especially their training, guidance, love, affection and motivation. I pray that I can serve my parents as best as I can.
To be the best supplier of the products and services to our global communication customers at the lowest total cost of ownership
Vision statement
To promote the products and services in international markets. To be a customer focused organization with product quality and Service excellence
Executive summary
Crescent Bahuman, the largest vertically integrated denim manufacturing facility in Southeast Asia Crescent Bahuman prepares jeans and denims related items for the manufacturers. We will expand production capacity of jeans and denims & threads. We prepare the top five percent, in terms of quality standards, of all jeans on the market. Our customers seek this product as it provides them with a point of differentiation to specialty roasters. In the past six years, demand for our products has exceeded the amount we are able to supply and we have been forced to refuse requests for larger shipments. We predict growth of thirty percent in the first year with sales exceeding $26,208,000. In this year three the plant will run at maximum capacity and based on the current price of products we expect profits of $ 2.5billions. We have positive indicators from current importers that the additional amount of beans will be sold.
Crescent Group Chronology Companys Objectives Vision Statement Mission Statment Financial Department Employees in dept. Functions a) Primary Functions b) Secondary Functions Oracle Financial Software Business Volume SWOT Analysis Conclusion
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Organizational Profile
Crescent Bahuman, the largest vertically integrated denim manufacturing facility in Southeast Asia Crescent Bahuman Ltd. originally setup as a joint venture between The Crescent Textile Mills, Pakistan and Greenwood Mills Inc., USA is now fully owned by the Crescent Group. The plant is located in Pindi Bhattian, Pakistan roughly 5 hours from Lahore and 8 hours Islamabad along a motorway connecting both cities. Designed as a vertical jeans wear facility, it commenced commercial production in June 1995. The plant is situat4d on 550 acres with 165 committed to commercial activates and manufacturing facilities of 1 million square feet. The facility is one of the first single site operations to include processing of raw cotton through finished jean wear. It also has a wastewater treatment plant and a power generation plant within the compound. Crescent Bahuman Ltd. has established a corporate philosophy for the betterment of the nearly 5000 employees and community while ensuring an environmentally friendly manufacturing process.
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The facility is equipped with the latest technology in equipment from spinning through garment finishing with a capacity of 11.5 million meters of fabric, which when converted produces 8 million jeans annually. In September 1998, Apparel Marketing & Operations Ltd. Was established to manage CBL. Along with its day to day management of operations and development of new strategies for marketing and sales, AMOL opened an office in Derry, Northern Ireland for the Marketing and Sales functions while creating an expatriate team in Pakistan to manage the operations and continue training of local management. The focus is to create seamless interface throughout the manufacturing process addressing delivery, cost and quality issues providing the right product the first time, at the right time. The speed of developing and getting the right product to the customer is at or above par with manufacturers all over the world. Lead-time from order to delivery to market has been a continuing focus of Crescent Bahuman Ltd. With extensive investment into systems right from order-taking and procurement through to production and delivery CBL has
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The diversity of The Group is reflected through its independent operating companies operating in diversified business sectors all over Pakistan. Among them are some of the companies that are
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The Crescent Group employs over 17,000 people and has revenues exceeding Rs 20 billion from its few of its prominent companies. This constitutes over 0.55% of the countrys GDP and over 1% of the market capitalization of Pakistan. The consistent growth of the Group has resulted in numerous joint venture partnerships with international companies desiring to invest within the economy. Crescent Group has the slogan of The people who care for people" and the Crescent Family has a general reputation of never transferring their money abroad. Crescent family particularly has the reputation of being truly rooted and entrenched in the Pakistani Soil and is considered to be a conscientious tax payer. An article in Weekly Friday Times in the first week of April 1993 described Crescent as "one of the oldest, largest and most distinguished business concerns in Pakistan, an exemplary tax payers and investors of every penny earned back into their business of the home country". Presided over by eldest member of the family, Mr. Mazhar Karim, the Group has over twenty working members and can be truly called a joint venture of uncles, cousins and nephews. This Chiniot sheikh family has lived up with quite a wonderful reputation, bearing an excellent
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record with its creditors throughout its business. Men running Crescent do not have to make contacts, for the privilege comes to them naturally.
Mission statement
Crescent Bahuman is a large-sized textile company focusing on jeans manufacturing and an intriguing atmosphere, in a prime neighborhood of Pakistan.
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The period of 1950s for Crescent Group was dominated by its focus upon the textile sector. After migrating to Pakistan, the Crescent family struggled to regain its strength and growth pace, which it had left back in India. Crescent family was allotted an industrial unit sprawling over 125 acres in Faisalabad, in lieu of the property left over in India, which was to become the spring board of their growth and diversification. After the creation of Pakistan, three of the above mentioned four brothers returned to the native land and in 1951, incorporated a trading company Muhammad Amin Muhammad Bashir Limited for export of cotton and imports. Mr. Bashir settled in Karachi, Mr. Amin managed the operations from Lahore while Mr. Muhammad Shafi worked at the ginning factory in Sargodha. After migrating to Pakistan, the family took advantage of the incentives offered by the government for setting up industries and established Crescent Textile Mills Limited. The 1950s also saw the establishment of the Crescent Sugar Mills which was later expanded through the addition of a distillery plant. In the beginning Crescent Sugar was operating as a unit of Crescent Textile Mills Limited. However, after commencement of the operations of distillery, unit it become a separate entity and got listed on the stock exchange.
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By mid 1960s Mr. Fazal Karim also returned to Pakistan and the four brothers fondly known in the business community, as the The Gang of Four" soon became Pakistan's biggest textile exporters. They were also joined in the business by their two cousins. In 1964, Crescent Jute Products Limited was set up and the Group took full advantage of unlimited resources of the countrys jute production in the eastern region. During the late 1960s the group expanded by setting up Crescent Boards Limited and Shams Textile Mills Limited. Crescent Board was the first of its kind designed by a German company to utilize biogases from its sugar mills for the manufacturing of board. Rapid expansion during the 1950s and the 1960s made Crescent Group one of the top groups and among 22 families notarized families of Pakistan, which dominated Pakistani economy in the sixties. The Group continued to expand its strength in the textile sector and incorporated Shams Textile Mills Limited, which was primarily engaged in manufacturing and trading of high quality yarn. The late 60s (1967) saw the emergence of Shakarganj Mills Limited as the Group continued to gain its hold in the sugar sector of the country. The end of the decade, Crescent Group had emerged as one of the most prestigious and strongest business conglomerate of the country
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The sponsorship and management of the Group realized the potential of Pakistans growing financial sector and decided to make inroads into it in late 80s. The Group established Pakistan Industrial Leasing Corporation Limited in 1987 and successfully undertook leasing business in the country. This was followed by the establishment of Crescent Investment Bank Limited, which was among the premier investment banking institution in the country. The Bank dominated the Pakistani investment banking scenario for almost a decade until it acquired Pakistans operation of a multinational financial institution, Mashreq Bank psc, to form Crescent Commercial Bank Limited in 2003. The merger gave Crescent group a completely new image in the financial sector as it became the owner of a full scale commercial bank in the country. The Group further diversified its focus towards other sectors of the economy and incorporated Crescent Steel and Allied Products Limited in 1983. It is one of the downstream industries of Pakistan Steel Mills, manufacturing large diameter spiral arc welded steel pipelines. The company has become one of the most well written success stories of the Crescent Group and stands as the leading private sector steel engineering company in Pakistan.
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Further inroads into the financial sector were made by the group in early 90s when it established 3 new Modaraba companies. First Crescent Modaraba, among them, become one of the largest modaraba companies in Pakistan in years ahead. First Crescent Modaraba in the years to follow turned out to be the parent company of the existing Crescent Standard Investment Bank Limited, which is now the largest investment bank in Pakistan. The Group also tapped into the countrys housing finance sector and incorporated International Housing Finance Limited in 1990. Besides establishing the new companies in the financial sector, the Group also started a series of takeovers and acquisitions and acquired Crescent Leasing Corporation Limited as part of its expansion strategy in the sector. Crescent Leasing Corporation Limited now stands among the most reputed and well renowned leasing companies in the leasing industry. The group entered the brokerage services in 1995 and took over Shoaib Capital (Pvt.) Limited to rename it as Crescent Capital Management (Pvt.) Limited.
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In early 2000s, the Group paced up its acquisitions and bought 3 leasing companies in 2002 namely Paramount Leasing Limited, First Leasing Corporation Limited and Pacific Leasing Company Limited.
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In yet another merger in 2003 Pakistan Industrial Leasing Corporation Limited, Trust Investment Bank Limited, Fidelity Investment Bank Limited and Doha Banks Pakistani operations all merged to form Trust Commercial Bank Limited. In a bid to further streamline the banking operations of the Group Trust Commercial Bank Limited was merged into Crescent Commercial Bank Limited in October 2004. First part of the groups financial sector penetration strategy was to acquire and establish companies with diversified operational bases and the second phase which was the consolidation phase saw some of the most pioneering and complex mergers in the history of Pakistan in respect of the number of companies involved. Crescent Standard Investment Bank Limited, which now stands as the largest investment bank in Pakistan, is also the result of multiple mergers and acquisitions involving 7 of the above mentioned companies that were bought in the nineties and early 2000s.The latest acquisition undertaken by the Group is in the energy sector. Altern Energy Limited was taken over by the Group in early 2005.Crescent Group now runs its fastest growing financial sub-conglomerate by the name of Crescent Standard Group, which is lead by Mr. Altaf Saleem, Mr. Ahsan Saleem and Mr. Anjum Saleem, who represent the third generation of the Crescent family.
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Following table depicts the chronology of developments (incorporations and acquisitions only) that were followed by the Group in entering new business venues over its history.
Company
Crescent Textile Mills Limited Muhammad Amin Muhammad Bashir Limited Premier Insurance Crescent Sugar Mills Limited Crescent Jute
1950
1951
1952 1959
1964
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Employees Detail
Males Females Management Residing on the plant Travelling daily TOTAL 5553 968 387 2197 3796 6521
Customers
Levis (World Wide) Stonage Blend Ben Shermen Mustang GAP Big Star Carrera
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Express
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new facility. 7. 8. Effectively communicating to current and potential customers, through targeted efforts, our position as a
limited to know role of Crescent Bahuman in textile sectors for development of Industrial sectors. Crescent Bahuman today,
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manufacturer in the context of Pakistan, has a wide scope and size, it symbolizes a fully growing tree evergreen, strong, and firmly rooted. My first purpose in Crescent Bahuman limited its operation how it works, and how it deals in imports and exports material it is an integral part of modern economic system. The principle of trade is first concentration of wealth and profit maximization, and then concentration of resources its first purpose is to fulfill the economic need of nation and its members. During last 20 years, Crescent Bahuman has concentrated on growth through improving product and service quality by using the technology and people utilizing its extensive techniques to increase work developing at large scales and stable the image of the company in the eyes of the international community and managing its non performing loss via improved risk management process. Crescent Bahuman today, represents the largest company in the whole Asia that has grown with time, experience in Pakistan. That organization is now trading the jeans in whole of the world and gaining the name in the international community, on the behave of its manufacturers. Crescent Bahuman has a interesting and great impressive environment in jeans and denims production. The level of the job
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spectrum of manufacturing, with the assistance of an industrial enterprise. To achieve this goal, programs devoted to practical industrial situations and disciplines are exposed to the technologist from both an industrial and an academic view. A further academic requirement for the employee are to have a general education background in humanities, and in social and behavioral sciences.
Financial objective:
Gross Sales
How much will you sell this year, next year, in 5 years?
Cost of Goods
What will you pay for the goods you sell & can it be reduced?
Net Income
How much will increasing Sales and reducing costs change your net?
Return on Investment
How can your increase the productivity of your investment?
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Marketing objectives:
Sales Dollars
Quantify projected sales in dollars.
Sales Units
Quantify projected sales in units.
Market Share
What % of the total market will you sell?
Distribution Channels
What channels will you use? Retail, Wholesale, Contract?
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in the last decade, the focus of much of that work has been on
If you look at most manufacturing industries today you will see that the planning process is found to be a bottom-up approach from a corporate or business perspective, which differs from the top-down planning process that has proven to be so successful in other industries. A good manufacturing strategic plan combines some "rational" elements (formality, comprehensiveness, control focus, longer horizon) with others that lend adaptability (wider participation and more intense interaction). If you can have this type of strategic planning, your manufacturing business is sure to be a much greater success. There will be less waste and higher profits. Why it is important to have a manufacturing strategic plan for the Crescent bahumabn: 1. Even the smallest amount of waste per item or time adds up incredibly fast when you take into account the sheer numbers and volume of what is being manufactured. For example, whether it is the manufacturing of one thousand jeans a day or denims, waste means money. The numbers do not have to be this large for the principle to stay the same. Any wasted time or material is wasted money. A strategic plan can help to eliminate waste, streamline efficiency, and thus mean larger bottom lines.
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2. While waste is a big issue, quality is even bigger. If you have a strategic plan it is like setting up a check and balances system. Nothing moves forward until it is complete, which means, the job is done. You do not have waste, but you also do not have dissatisfied customers because things are done poorly or incorrect. 3. A plan gives people a goal and something to work toward. Working just to work is not common. However, working toward something, and having an end game is motivation. While for many their motivation is a weekly, biweekly, etc. paycheck, showing that person how they fit in your overall plan, and how if they don't fit, they don't get paid becomes motivation inspired by a strategic plan. There are tons of reasons why having a manufacturing strategic plan is critical to your business. Bottom line, without one you waste time, energy, and money; three things no one wants to waste.
ORGANIZATIONAL STRUCTURE:
CBL comprises of nine divisions, 14 Departments and 47 Sections. These departments are
Departments of CBL:
1) Human Resources
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Engineering (Mechanical, Electrical, and Power house) Marketing Supply chain Industrial Engineering Product Development Spinning Weaving Cutting Sewing GWP Quality Assurance
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Information Technology Power Generation Security Industrial Engineering Sewing Services School Garment wet Processing Head Office Industrial Relation Civil Cutting Weaving Quality Assurance
PG
SY IE
SW
SV
SCH WP HO
IR
CV CT WV QA
Management hierarchy
CHIEF EXECUTIVE OFFICER (E1)
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(E3)
(E4)
MANAGER OF FINANCE
(M1)
(M2)
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(M4)
(M4)
S1
S2
S3
S4
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S5
OFFICE BOYS
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Objectives:
To ensure alignment of people, processes, strategies and facilitate the organization in concern of to achieve the CBL goals. Make people in term of to achieve the personal and professional objectives fulfilled.
Services:
Establishment and implement of all HR related policies and Determine the training needs of managers and ensure their Bring positive change in attitude and personality Develop the sense of ownership at all levels Ensure the employees and organization development Implement the orientation training at all level Ensure the fair and equitable pay structure Ensure the international quality standard procedures development through external internal trainings programs
Dyeing Deptt:
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Sewing Deptt:
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Production and quality assurance are synonymous while assuming the case of crescent Bahuman. The concept of quality circles was much before introduced at CBL while other organizations in the industry just thinking on it. Modern quality control and assurance systems and techniques i.e. ISO 9001, ISO 14001, WRAP, Organic Cotton Certification-OE & GOTS etc have been implemented at CBL. The company places highest emphasis on manufacturing of its denim products with consistent quality by incorporating efficient and flexible process to ensure customer satisfaction. Total quality management is achieved through effective control and continuous improvement of every process. Quality assurance department of CBL cab be divided into two areas as given below: Fabric Quality Garment Quality Crescent Bahuman produces high quality denim products. CBL produces both finished garments as well as fabric, therefore, monitoring of product quality standards is given high priority so that customers are not only satisfied, but also repeat business opportunity is created. Fabric quality is looked after at different stages. Spinning, weaving, ball warping, dyeing and finishing etc. While garment quality is closely monitored by the DM level resources during the process of garment Wet Processing and Sewing.
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Leadership :
Walk the talk Empowerment Problem resolution
Accountability:
Ownership of responsibility Acceptance of mistake Use of authority
Team Work:
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Growth:
Result orientation Innovativeness Willingness to learn
Managerial
S1 to S2(officers, Junior officers, & supervisors) S3 to S5 (operators, Senior operators, and assist operators)
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FINANCE DEPARTMENT
Finance is an art of managing money. And for this purpose, CBL has formulated a finance department to look after the existing funds and to generate new methods for generating funds. The Finance department in CBL comprises of well educated, professional and intelligent personnel who by using their skills trying to benefit company. Everyday finance department is busy in such activities that what new methods to be explored so that cost is reduced and profits and revenues be increased. As CBL deals in number of activities, such as purchases both local and import, sales both at national and international level; then funds are obtained from Banks and much more. So, Finance department performs the activities of recording, summarizing and than at the end making decisions in order to provide cost beneficial solutions. The scope of work covers payroll processing, Imports recording and updating accounts payable, recording collections and updating accounts receivable; then the major portion is of costing
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interest to be paid annually or quarterly, and in performing all this complying with all the laws, accounting principles and regulations. Also, all inventories are in control of finance department. All records regarding material in and out of company premises are accounted by finance personnel.
Accounts Payable
a) Local b) Import
General Ledger
Costing
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PAYROLL:
The payroll division handles payments to all full-time and parttime employees on a bi-weekly basis. In addition all checks for the self-insured medical plan, reports for workers compensation, and all other payroll related items are handled by this division.
ACCOUNTS PAYABLE: Import payable and Local payables when comprised are called account payables in CBL.
IMPORT: This division deal with only to foreign parties such as Levis. Ben Sherman Paxar international etc.
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This division deal only in local parties such as Sapphire textile, pay hotel expenses mess expenses etc. GENERAL LEDGER: General Ledger is a mother book of Accounts; it is used to show the chain of suppliers as a whole account in CBL.
COSTING: The estimated cost and actual cost of the CBL products (yarn, fabric, and garment) and their variance analysis is called costing.
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ORACLE FINANCIAL
Oracle Financial is a complete application for financial reporting, analysis, budgeting, and planning. Integrating a central source of management data with powerful analytical tools, Financial allows businesses to make, manage, and measure decisions across the enterprise. The system provides businesses with everything they need to control costs, analyze performance, evaluate opportunities, and formulate future direction. Oracle Financial is part of the Oracle E-Business Suite, an integrated set of application, which is designed to transform your business to an e-business.
DECISION MAKING:
Oracle Financial integrates with oracle general ledger. This integration eliminates the need for duplicate data entry and structural maintenance, and thereby provides a more costeffective financial management. In 2002 Crescent Bahuman Limited started Oracle Financial system for its Finance Department up to 2003, it was on trail.
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PRIMARY WORK:
I have divided my work in following parts: Payroll Reconciliation Statement Preparation of cost sheet Transaction in Oracle
Payroll
In a company payroll is the sum of all financial records of Salaries, Wages, Bonuses and Deductions
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The first item in the employees payroll statement (salary slip) in his / her basic salary. The basic salary is based on his / her grade and decided by the H.O.D. The employee grades are divided into 3 categories Category 01: S6, S5, S4, S3, S2, S1 Category 02: M6, M5 M4, M3, M2, M1 Category 03: E5, E4, E3, E2, E1
Overtime:
The duration of maximum overtime is 12 hours other than the routine working hours in a week. The overtime is done by employees in condition when orders are in large quantity within the less period of time and when in a department some employees are on leave and their left work is divided into employees in shape of overtime.
Special Allowance:
Special allowance is the allowance which is added in the salary for those who are having grades from S1 and above
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Piece rate is the incentive given to the workers of Sewing and GWP department on the basis of each piece being processed. The calculation of piece rate is done by the Industrial Engineering department (IE) Piece rate is apply only on S3, S4, S5 grades. Perks: Perks are the pre-defined amounts to compensate the day care medical charges of the employee that are based on the grades of the employees. This item of payroll statement does not show in the salary slip of the employee.
Head Office.
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Utilities are the allowance which is paid to the employees to compensate the electricity, gas and telephone expenses. Utilities are the 10%of the amount of the employees Basic salary + COLA.
Mess Charges
Mess charges are included in the deduction section of salary slip of those employees that are availing the accommodation of the CBL. CBL accommodation is divided into four hostels according
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to the grades of the employees. These four hostels are Workers, Senior Grades Hostel (SGH), Junior officer hostel (JOH), Senior officer hostel (SOH). SGH, JOH, SOH mess is maintained by these hostels itself and resident of that hostels are being charged the mess expense as per their attendance. The residents of workers hostels have to maintain their own mess system or they can avail the facility of Canteen Cook House at charges
Income Tax:
An employee who is being paid Rs. 200,000 or above comes under deduction income tax which is applied on the employees salary at different ratios according to the amount of the employee
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next month salary slip of the employee, the excess salary or excess perks are shown in the deduction section of salary slip.
EOBI is 1% of the salary amount that is deducted from the salary amount and added in EOBI for the purpose of employees pension after his / her retirement. EOBI is run by the GOVT. and that deduction is carried forward to the EOBI account.
Sports Fund:
Sports fund is fixed deduction in the salary slip for the employee of S1 and above which is Rs.15
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Club fund is also a fixed deduction for the employee having grades from S1 to above i.e. Rs 50
Welfare Fund:
Welfare fund is the deduction of Rs. 100 that is deducted only from the salary of AM and above grades managers.
Milk Deduction:
CBL is also having a dairy farm where the residence of CBL can access the fresh milk everyday and total amount of the whole month milk expense will be deducted from the salary at the end of the month.
Store Deductions:
When an employee joins the CBL, he /she is provided some equipment according to his / her job requirement from the main store, when he / she left the organization he /she has to return that specific equipment, in case of missing anything a deduction is being taken in his/ her Final Settlement.
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CBL is also having a farm where the residence of CBL can access the Wheat / Rice at every season and the total expense is deducted from the salary at the end of the month.
Advances:
An employee of CBL can avail the facility of taking advances (Loans) in form of cash if he / she needs for some emergency usages. The advances are based on employees Salary and
Provident Fund.
Provident Fund facility the employee can avail 40% of PF as a loan and it is deducted from his /her salary in 12 equal
installments with one extra installment equal to the amount of one installment.
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On the basis of above five reasons of the separation of the employee, the HR department prepares a clearance certificate and an Office Letter of that specific employee. In Clearance certificate the information consist of employees bio data Like Employee Name, Code, Code Grade, Department, Joining and termination date, Earned Leaves, No. of days worked in the leaving month etc. The Clearance certificate rotates from different departments for the purpose of clearance just in case for if any amount or item is recoverable from that specific department. The main concern departments of Clearance Certificate are: Store School Mess Security Office
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After the clearance from these departments, HR hand over that clearance certificate to the Finance department along with an copy of an Office letter and some other documents according to the employee s separation reason i.e. Resignation Application, Retirement Application etc. The office letter is the letter of termination which is, firstly send to the specific employee for the purpose of Final Settlement. Now on the basis of Clearance Form and Officer Letter, the payroll section of the Finance Department prepares the Final Settlement Document Slip which illustrate the Net amount payable to or Receivable form of that specific terminated employee. That process is executed through Calculating the Total Payables and Total Deductions on the basis of Clearance Certificate and some different account Reconciliation MS Excel worksheet. The detail of the total payables and total deductions are as follows:
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Others When Full and Final Settlement Accounts Document slip of each employee is being completed, then that manual transactions to an IT based application software( Oracle Financial) for the purpose of final settlement Invoices and Vouchers of each employees. Invoices and invoices based vouchers are further divided into their sub-categories on the basis of Final Settlement account slips which indicates whether the employee lies in the category of payable to or Receivable form .
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In case of Receivable From Employees, only the Journal Vouchers is being prepared and receivables are adjusted in the Provident Fund Final Settlement of the employee.
RECONCILIATION STATEMENT
The purpose of this exercise is to reconcile own companys statement with the records of other company. A valuable thing about a checking account is that it provides a double record for the depositor--one maintained by the company (depositor) and the other by the bank. The banks record, called a bank statement, is sent periodically (usually monthly) to the company. Whenever a bank statement is received, for control purposes an appropriate person within the company should reconcile the bank statement with the companys own records. This reconciliation accounts for differences between the two records. These differences are usually one of two types: one is comprised of lag by the bank or the company. Of course, once identified, errors can be corrected Furthermore, the company is assured of the amount of cash available to it at the bank. For the best control, many companies reconcile both balances and transactions.
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This assures that the bank account is not being used for unauthorized purposesfor example, an unauthorized deposit and withdrawal for the same amount.
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performance, aesthetics, schedule or time-to-market, and quality. The importance of these factors will vary from product to product and market to market. And, overtime, customers or users of a product will demand more and more, e.g., more performance at less cost. Cost will become a more important factor in the acquisition of a product in two situations First, as the technology or aesthetics of a product matures or stabilizes and the competitive playing field levels, competition are increasingly based cost or price. Second, a customers internal economics or financial resource limitations may shift the acquisition decision toward affordability as a more dominant factor. In either case, a successful product
Supplier must focus more attention on managing product cost.
When a company faces a profitability problem and undertakes a cost reduction program, it will typically reduce research and development expenditures and focus on post-development activities such as production, sales, and general and administrative expenditures.
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DEFINITION OF TERMS:
The following definition of terms will provide a common basis for discussion: Recurring production cost = Production labor + Direct materials +Process costs + overhead + outside processing Non-recurring costs Product costs = Development costs + Tooling = Recurring production costs +
allocated non-recurring costs Product price or acquisition = Product costs + selling, general & Costs administrative + warranty costs + profit
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DOCUMENTS:
Following documents are necessary for the preparation of cost sheet. Suppliers Invoice Agents Bill Freight Bill Form of tax
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After the completion of above requirements we can prepare cost sheet by using computer.
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TRANSACTION
TRANSACTION
RECONCILIATION STATEMENT
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6055513 4408052 1647741 168505 -3860 1475372 742329 27231 769560 705770 77389 628427
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Vertical Analysis of Profit & Loss Account For the half year ended June 30, 2010
JUN 30, 2,005 JUN 30, 2,006 JUN 30, 2,007 %
130.8233 127.5346 141.6712 89.92352 62.32978 161.162 152.4494 159.3364 152.6756 172.547 144.2776 177.5273
Sale Cost of good sold Gross profit Admin & Selling exp Other income Profit from operations Finance cost Other Charges
100 100 100 100 100 100 100 100 100 100
144 137.9969 171.4419 90.84593 72.63735 257.4799 210.3025 245.9202 211.3076 364.2595 179.4612 444.985
123.561 121.5899 129.414 88.79439 39.56305 137.9506 134.4045 137.2397 134.5017 142.0448 130.6892 143.6706
119.0683 117.7563 122.7286 87.38028 -52.7611 127.5103 125.5977 127.1348 125.6515 129.5997 123.4826 130.3964
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Horizontal Analysis of Profit & Loss Account For the half year ended June 30, 2010
J J UN 30, UN 30, 2,006 Sale Cost of good sold Gross profit Admin & Selling exp Other income Profit from operations Finance cost Other Charges
100 80.37474 19.62526 12.21483 1.876638 9.287071 6.302066 0.183005 100 76.72709 23.27513 7.67631 0.942975 16.54177 9.168263 0.311327
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52,847 89,838 226,010 233,644 244,989 1,206,361 18,521 22,846 51,147 1,073,627 1,307,857 3,732,528 1,682,644 1,929,962 6,547,158 578,182 597,278 6,182,251 2,550 5,554 32,327 124,260 146,866 469,060 544,866 709,655 1,351,005 61,440 76,544 1,469,488 108,295 165,148 1,299,790 250,407 279,626 313,728 12,522 24,390 23,507 1,101,912 1,327,129 3,458,949 1,682,644 1,929,962 6,547,158
296,061 382,643 1,534,382 2,020,740 63,464 79,777 4,696,905 6,026,356 8,251,102 10,683,359 8,056,639 10,858,674 43,254 58,143 591,529 763,929 1,674,648 2,077,717 1,943,872 2,647,896 1,715,906 2,311,654 344,575 376,235 31,125 36,617 4,319,700 5,498,219 8,251,102 10,683,359
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Authorized Capital 600,000 shares rs.10/-each Issue, Paid up capital Profit & Loss a/c Long term loans finance lease Deffered Libilities Staff retirement Short term bank borrowings Liabilities Creditor,other liabilities Provision for taxation Total Liabilities Fixed assets Long term deposits Stores, spares, loose tools Stock in trade Short term investments Trade debets Other receives Bank Balance
J UN J J J J 30, UN 30, UN 30, UN 30, UN 30, 2,005 2,006 2,007 2,008 2,009 (Rupees in Thousands) 100 100 100 100 100 100 100 100 100 100 100 444.985 177.5273 143.6706 130.3964 100 130.0997 490.9099 129.6851 132.5182 100 91.12671 905.1417 128.9335 134.0781 100 105.6253 276.682 131.8992 136.1796 100 108.6428 123.8474 110.7008 111.5983 100 94.77141 184.286 130.2081 134.9787 100 120.714 236.6925 124.0835 126.1924 100 100 100 100 100 100 100 100 100 100 100 100
169.9964 104.8557 123.3519 121.8167 114.6982 103.3028 217.8039 118.1925 130.2439 124.5833 152.4983 111.6686 251.5751 492.4144 223.8773 285.3927 339.2377 135.071 582.049 319.3796 190.3749 1919.795 787.0456 112.1956 130.9948 127.1909 124.0816 125.8371 126.0257 130.3189 133.8015 126.1094 123.9557 132.2823 132.0141 109.8323 129.2444 131.6974 125.7043 128.3048 129.478 134.7792 134.4211 129.1448 124.0689 136.2176 134.7191 109.1883
100 194.7772 96.37966 132.406 117.6468 100 120.4387 260.634 124.8848 127.2824 100 114.6982 339.2377 126.0257 129.478
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Authorized Capital 600,000 shares rs.10/-each Issue, Paid up capital Profit & Loss a/c
As at 30th June, 2010 JUN J J J J 30, UN 30, UN 30, UN 30, UN 30, 2,005 2,006 2,007 2,008 2,009 (Rupees in Thousands)
35.6581665 5 35.6581665 5 2.52358787 7 7.55858042 5 31.0887 31.0887 9.79055 5 8.57353 7 9.16428 2 9.16428 2 5.12352 1 12.4067 4 7.27175 6 7.27175 6 5.84086 8 12.767 5.61621 1 5.61621 1 5.88229 8 13.0667 8
Short term bank borrowings Liabilities Creditor,other liabilities Provision for taxation
46.7796515 5
49.2332
Total Liabilities
100
100
100
100
100
34.3615167 6 0.15154720 8
30.9476 6 0.28777 8
94.4264 8 0.49375 6
97.6431 9 0.52422 1
101.641 0.54423 4
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7.15064 1 19.4481 6 24.7852 4 21.6378 9 3.52169 4
4.79182 0.35904 1
0.34275 51.4652 6
52.8313
100
100
100
100
100
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FINANCIAL RATIOS
LIQUIDITY;
'' A firms ability to satisfy its short term obligations as they come due.''
Year involved;
Base year 2008 current yea 2009
result
Decrease in Cash 4.65 and bank balances Increase incurrent portion of 20.51 non current liabilities
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20.51
RESULT;
The results show that most of the indicators are not favorable or showing positive results .The previous year performance was better than the current year.
IMPACT OF CHANGE;
The analysis shows that the firms ability to pay off its short term debts has declined in current year as compared to previous years as it is evident from the results of various ratios and it is not having a positive impact on the company.
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ACTIVITY
The effectiveness of management towards the utilization of resources to generate sales. There are two types of Activity: Turnover Analysis Period Analysis.
YEARS INVOLVED:
Base year: 2008 Current year: 2009
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Name Of Ratios
2008
2009
Result
0.623 times
Unfavorable
Decrease in loan and advances Decrease in other receivables Decrease in cash and bank balances Increase in net sales Increase in property, plant and equipment Increase in long term investment Increase in long term deposits
0.81
Favorable
16.82% 0.0138%
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Name Of Ratios
2008
2009
Result
Reason Change
658.7
Favorable
. Increase in sales
0.98 days
0.55 days
Favorable
Increase in sales
25.27%
530 days
480 days
in 46.38%
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RESULT
The ability of cresent bahuman is unfavorable in current year as compare to the base year because majority of the indicators calculated are unfavorable in the current year.
Increase in fixed assets is much more than increase in sales Increase in sales is more as compare to current assets Increase in collection from receivables as compare to last year
IMPACT OF CHANGE
Inventory turnover has deteriorated considerably and is worse than the previous year.
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Total Assets are increasing and Sales are also increasing but increase in It means that management is not utilizing its resources in a proper way. But The collection system of the company shows that the management of the company is efficient in the collection of receivables as compare to the last year.
SOLVENCY;
''The ability of a firm to pay its long term obligations as they come due''.
YEARS INVOLVED;
Base year; 2007 Current year; 2008
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2009
result
3.58:1 Favorabl Increase in net sales e Increase in gross profit Increase in operating income 0.51:1 Favorabl Decrease in long e term financing Decrease in profit/other charges payable Decrease in provision for taxation Decrease in sales tax Increase in property plant and equipment, Increase in investment property Increase in long term investment Increase in long term deposits Increase in stocks, spare parts Increase in stock in trade increase in trade debts increase in trade deposits and short term prepayments increase in investments increase in cash & bank balances
0.71: 1
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The indicators show that the company is in favorable position to pay off its long term obligations in current year than the previous year.
REASON FOR CHANGE; The basic reasons for this change are;
Increase in cash & bank balances Increase in investment Decrease in long debts
IMPACT OF CHANGE;
The company is very efficient in paying its long term debts and its ability has increased in the current year than in the previous year. it is having a very positive impact on the repute of the company and in attracting more investors towards the company .
PROFITABILITY
The ability of business to generate return for owner. OR The overall effectiveness of management is called profitability
YEARS INVOLVED:
Base year 2007 Current year 2008
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Operating Profit ratio=Operating Profit *100 sales Operating Ratio=Operating Cost *100 Sales Net Profit Ratio=Net Profit *100 Sales
Return On Equity=Net Profit *100 Total Equity Return On Investment = Net Profit *100 Amount Invested Within business
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24.8%
28.4%
Favorable
Increase in sales
19.5%
23.53 %
Favorable
Increase in rental income. Increase in profit on deposit. Increase in gain on disposal of investment property. Gain realized on sale of investment property. Increase in other income Increase in rental income. Increase in profit on deposit. Increase in gain on disposal of investment property. Gain realized on sale of investment property. Increase in other income Increase in operating expenses
8.53%
11.36 %
Favorable
Operating Ratio
81.14%
77.65 %
Unfavorable
27.43%
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The results show that the majority of calculated indicators are showing positive results. It means the current years performance of CBL is better than previous year.
IMPACT OF CHANGE
There is an increase in gross profit, operating profit, net profit which means that indicators are covering all commercial expenses like interest finance cost also providing the enough amount for reinvestment of R/E.these indicators are also showing that there is an increase in asset as sales and operating income of company but on the other hand net profit is more as compared to capital employed operating cost of company has increased this year but sales and operating income are covering it.
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SWOT ANALYSIS
STRENGTHS: Biggest Unit
Biggest unit in South Asia and exports 9 billion geans per year..
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Quality is the main factor for the success of any organization. Thats why CBL is ISO 9001 certified company for his quality products.
No illiterate labor
Illiterate labor intake is zero, minimum education level for worker class is middle but primary is also accepted.
WEAKNESSES:
High turnover rate
Turnover rate is very high at worker level, which effects the hiring and trainings cost.
Complex Hierarchy
Management is divided into many levels (like SAM AM and JAM) so low career development chances for management level employees.
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There is a market department in CBL but is not that much effective as it should be as marketing department of being the biggest unit of South Asia.Other competitor are spending more on it as compare to CBL
No Advertising
Local sales are very low, Because no advertisement on radio or T.V. by using advertisement in local country it can increase its sales.
OPPORTUNITIES
First movers
CBL enjoys opportunity of first movers in that industry. So is much developed and well reputed in the industry internationally
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The industry is quiet expensive to enter for any new comer, especially in the current scenario of economic and energy crisis.
THREATS
Market share is divided with competitors
Now LEVIs has given a part of the contracts to new firms like US Apparel and Auzgard.
Foreign investors
Foreign investment in textile sector in Sri Lanka, Bangladesh and India is a danger in future for Crescent Textile Mills .
Dumping duties
South Africa is thinking about to impose the anti-dumping duties on Pakistan textile exports. If it is imposed, a reasonable export share and big market may be lost.
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RECOMMENDATIONS
Analyzing all the chapters conclusions and the interviews and surveys that I have conducted, it is finally concluded that CBL management is working in a more focused and formalized manner. However, to achieve their objectives successfully on the International standards, the following suggestions are offered: The CBL should also take interest in the local marketing to increase the profit. It is recommended to CBL that they should go for news paper advertisement also, both for recruitment purpose It is recommended to the CBL management, that the department mangers must also be given opportunity to go abroad for updated training courses. The CBL management must also arrange local training sessions for special purposes to be refreshed after every 3-4 months, like stress management, time management, crises management etc. As the turnover rate is very high, the management should look for the reasons and take effective steps to overcome the causes and not only the symptoms.
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Case studies must be conducted and training literature must be provided to the top Management (Managers and Deputy Managers).
CONCLUSION
I got a lot of experience from Crescent Textile Mills. During my internship we came to know that how the different activities take place, what are the procedures The Crescent Textile Mills is on the way of progress. It has been earning profit for the last five years. The management is professionally qualified and experienced. The Crescent Textile Mills should motivate their employees by providing different incentives. Their salary package is also not attractive. The performance of the Human Resource
department is also not satisfactory. Crescent Textile Mills product is of high quality. The demand of Crescent Textile Mills products is increasing with the passage of time. The company is expanding its capacity to satisfy the demands of their customers. Management of the company is trying to improve more and more to earn profit and improve Pakistan. the economy of the
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GLOSSARY
Accounting :
is an art of recording, classifying, summarizing and also include the prepration of financial statements for effective decision making.
Accounting cycle :
Sequence of accounting procedures to record, classify and summarize accounting information in financial reports at regular intervals.
Accounting period:
Period of time required by an income statement.
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Accured income:
Amount that is earned but yet not received.
COSTING
The estimated cost and actual cost of the CBL products (yarn, fabric, and garment) and their variance analysis is called costing
Gross profit:
Amount remaining after the deduction of cost of goods sold is ..
Turnover:
The behavior of employees to leave the job.
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BIBLIOGRAPHY
For the completion of this Report I collect information from the following sources Search engines: Name of website www.google.com www.wikipedia.com www.cbl.com.pk Date visited 23-08-2010 23-08-2010 time visited 10:20am 5:30Pm 6:00Pm 23-08-2010
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