Internship Report On Colony Textile Mills Limited

www.vustudents.ning.
com
Internship Report on Colony Textile Mills Limited
COMSATS
INSTITUTE OF INFORMATION & TECHNOLOG
S!"mitted To#
Sir Waqar
Ahmed
S!"mitted $y#
Hassan Bakhtiar Roy
FA%&'M$A'%()*LHR

AC+NO,LE-GEMENT

Up and above anything else, all praise to Almighty Allah alone, the
Omnipresent and the most Merciful and compassionate. The words
are bound, knowledge is limited and time is short to express is
dignity. !t is one of infinite blessings of Allah that he bestowed me
with the potential and ability to contribution towards the deep
oceans of knowledge already existing.
! pay hum"age to greatest personality of the universe# HOL
.RO.HET HA/ARAT MUHAMMA- $%&U' who is forever
source and spring of guidance in every sphere of life.
www.vustudents.ning.com
At the very outset, ! would like to express my hearties and
sincerest sense of gratitude to all my worthy teachers of (!!T
)ahore for their inspiring guidance and constructive criticism.
! am highly thankful for the cooperation of Mr0 $il1l Ni12i3 Mr0
,1sim Omer3 Mr0 Ri241n M1li53 Mr0 T1hir Mehmood3 Mr0
No!m1n Ch1th1 1nd Mr0 +1shi6 Ni12i o6 Colony Ind!stries
7.8t09 Ltd0 ! might not be able to complete my internship without
their cooperation and kind behavior. ! am also gratified to all my
sincere fellows 4ho ! had ever remembered for their continued
encouragement moral support and invaluable succor as well as
substantial cooperation during my critical moments.

Hassan Bakhtiar Roy
Contents
Exe:!ti8e S!mm1ry ;
Textile Ind!stry in .15ist1n <
Introd!:tion & History &
=ision St1tement >%
Mission St1tement >%
Gro!p M1n1?ement .ro6ile >%
.rod!:tion A::o!ntin? & M1n1?ement System >@
Inspe:tion System >(
Or?1ni21tion1l Str!:t!re >;
S,OT An1lysis >&
-et1il o6 S,OT An1lysis @%
.EST An1lysis @;
M1r5etin? Str1te?y @<
Competiti8e Str1te?y (%
.!r:h1se A::o!ntin? System (>
.ro:ess o6 1rn .rod!:tion (A
,or5 done d!rin? Internship (<
Le1rnin? 1s 1n Internee A>
Re:ommend1tions A(
Annex!re AA
Gloss1ry ;%
$i"lio?r1phy ;@

Exe:!ti8e S!mm1ry

This report is based on the activities performed during the
internship at (O)O*+ Textile Mills )imited. !nternship duration
was , weeks and it provided practical knowledge of working in
professional environment. This learning experience is described in
detail n the various sections of this report.
!n the first section, there is some detail about the company. The
history and present status of the company is explained. The
organi-ation structure and the details of its management along with
its location are also discussed. ! have also discussed the yarn
manufacturing procedure and the important departments of the
company. ! have discussed some business operations and some
strategies as well.
The second section provides information about the activities that !
performed during the internship. ! worked as an internee mainly in
Accounts and Marketing department. owever, ! also spent some
time in %urchase .epartment to gather some information about
their working.
The third and last section includes the recommendations.

Textile Ind!stry in .15ist1n

The subcontinent is the inheritor of one of the richest and oldest
textile traditions in the world. /xcavations at Mohen0o .aro and
arappa 1233"4233 &( revealed that the inhabitants of the !ndus
5alley cultivated cotton. 6ir 7ohn Marshall, the archaeologist has
stated that a few minute scraps of cotton were found adhering to
the side of a silver vase. (lay and faience spindles whorls indicate
that cotton and woolen fibers were spun. A well"e8uipped dyers9
workshop was excavated at Mohen0o .aro and the fragment of
cloth indicates that woven cotton cloth was dyed with madder root.
!ndependence from the &ritish in 4:;< and the division of the
!ndian subcontinent into %akistan and !ndia started a new era for
textiles production. %akistan consisted of two entities, east and
=est %akistan. The =est was the cotton producing area and the
/ast was responsible for 0ute production. At the time of partition,
%akistan had no industrial base and inherited only one textile mill,
the )yallpur (otton Mill in )yallpur >now called ?aisalabad@. This
mill produced yarn and gray cloth and no printed fabrics.
Under the Open Aeneral )icensing >OA)@ scheme, the business
community imported plants and machinery with cash dollars. !n
4:23, Adam0ee Mills was set up in Barachi, Bohinoor in
?aisalabad, Colony Textile Mills in M!lt1n, *ishat and (rescent
Textile in ?aisalabad. These were followed by Aul Ahmed Textile
Mills, Al"Baram, 5alika, 6tar and Cashid textile mills.
=ithin a decade the new country of %akistan was self"sufficient in
cotton and began exporting gray cloth and later cotton yarn.
%akistan started exporting printed fabrics in the late 4:<39s to
Africa and by mid D39s was sending printed material to /urope.
%akistan9s location was ideal, as it lay halfway between the
western world and the ?ar /ast. %akistan has a 1D percent share in
world export of cotton yarn and a , percent share in world export
of cotton cloth.
!t was in the ,3s that the power loom took over and by the <3s gray
cloth was being exported at throwaway prices. There are about
133,333 power looms operating in %akistan some of which are
backyard operations. andloom, which formed the backbone of
textile goods in the last century, is now almost non"existent, its
sales confined to a fast diminishing rural market and a very small
niche market.
Although %akistan is the world9s fourth largest cotton growing
nation in the world, after the United 6tates, (hina, and !ndia, its
total turnover for export is only E 2 billion. Textile goods form ,3
F of the total exports of the country. The commodities exported
are yarn, cloth, tents, and canvas, bags, towels, bed linen,
garments, synthetic textiles and other made ups.
=ith a large and expanding textile industry, textile education and
training became imperative. The Textile University of %akistan
was established in Barachi to train technical and management
professionals. The Textile University awards degrees in Textile
6ciences and Textile Management. The *ational (ollege of Arts in
)ahore and the !ndus 5alley 6chool of Art and Architecture in
Barachi are the only two institutions in %akistan, which award a
degree in the discipline of Textile .esign. .esigners are being
absorbed into the industry, bringing about change and vibrancy,
with innovations in %rint design and weaving.
Today there are ;23 6pinning mills and G2 composite textile mills.
Textile goods form ,3 F of the total exports of %akistan.

Introd!:tion
& History
(olony group has been the pioneer of textile industry by setting up
(olony Textile Mills )imited $(TM)' after partition of the sub
continent in 4:23, thus (TM) became one of the first textile mills
to be registered as public limited company and 8uoted in Barachi
6tock /xchange $B6/'.
?oundation of the group was kept over a small flour milling
operation, which rapidly grew into cotton ginning that evolved into
the core business of the group, constituting 14 cotton ginners
spread throughout the cotton grown belt in the province of %un0ab "
%akistan. The logical vertical process"integration paved its path for
the group to invest in to Textile 6pinning. The ground breaking of
the 6pinning facility was the beginning of huge investments that
followed which gave the group a leading position in the Textile
!ndustry of the (ountry.
(olony Textile soon became one of the largest vertically integrated
textile facilities in the country. The group further diversified in to
%ower Aeneration and .istribution network, &anking, !nsurance,
and (ement sectors. The success of the group continued until the
government regime shift brought about a shift in policy from
private sector pushed industriali-ation to a strong wave of
nationali-ation. The Ainning, ?lour Milling, %ower, &anking,
!nsurance and (ement along with various other sectors were
completely taken over by the government.
aving ma0or assets nationali-ed, the Aroup was faced with severe
financial difficulties for almost one and a half decades.
%resently, the (olony Aroup consists of several Textile 6pinning
facilities with an installed capacity in excess of 113,333 spindles
out of which more than 133,333 spindles are ; years old or less.
(olony group is managing the following companiesH
Comp1ny N1me Line o6 $!siness St1t!s
(olony Textile Mills )imited Textile $6pinning' %ublic )imited (ompany
(olony !ndustries $%vt.' )imited Textile $6pinning I =eaving' %rivate )imited (ompany
Colony Textile Mills Limited 7CTML9
(olony Textile Mills )imited, one of the group companies of the
(olony Aroup, is a Textile Manufacturing unit established as on
1;
th August, 4:;, and engaged in manufacturing of yarns of various *e (ounts. The company has authori-ed
capital of Cs. ;44,333,333 as on 6eptember G3th 133D.
.uring year 1333 to 1334 the annual production capacity of the
company was G;.D4G million Bg9s converted into 13 *e (ount
based on 444,4G, spindles. (urrently the number of spindles
installed has been increased to over 4<2,333 spindles.
A summary of the company9s production record for spinning
section for the past three years is given in Annex >0;
e1r ended (%th Septem"er @%%< @%%B @%%&
*o. of spindles installed 2:,133 <:,D,; 4<<,;;D
Average no. of spindles worked ;<,3D2 ,;,4:2 422,GG3
(apacity at 13 count$Bg9s.' 4<,<<D,333 11,D;4,331 ;D,,,:,442
*o. of shifts worked 4,3:1 4,3;3 4,3:2
Actual production converted at 13 count 4;,,21,,D3 4D,<3G,G<D ;<,G:;,;;,
(apacity Utili-ation D1.33F D1.33F :<.GDF
The company sales are comprised of local sales which is almost 433F against advance cash payment. The total
turnover of the company during last year was Cs. G.11, &illion which is expected to cross 2.33 &illion mark during
the current year.
=ision St1tement
Attain highest standards of 8uality in its all business activities.
6ustained growth in real terms.
ave professionally trained high 8uality motivated workforce, working as a team in all environments.
Attain past glorious position and be recogni-ed locally as well as internationally as a dynamic, 8uality conscious
and progressive company and industry leader.
Mission St1tement
To manufacture 8uality products for customer satisfaction through
onoring the commitment.
(ontinuous endeavor for improvement through adoption of most modern technology in production.
6trict adherence to 8uality control.
.eveloping a sense of high reliability through fair dealing.
&ecoming a part of country9s development and economic prosperity.
Gro!p M1n1?ement .ro6ile
A brief profile of the main directors of the company which hold ma0ority of the shareholding is given belowH
MR0 MUGHIS A0 SHEI+H
Mr. Mughis A. 6heikh is the (hairman of (olony Textile Mills )imited.
MR0 FAREE- M0 SHEI+H
Mr. ?areed M. 6heikh is the (hief /xecutive of (olony Textile Mills )imited.
MR0 NA=EE- M0 SHEI+H
Mr. *aveed M. 6heikh is (/O and director of (olony =eaving Mills $%vt.' )imited.
.rod!:tion A::o!ntin? & M1n1?ement System
(!) production accounting and management system not only ensures consistency in the operations but also helps to
manage orders on a micro level. !n"house developed software provides great tools to (!) production team for
monitoring production processes, production planning, and conducting periodic audits to reduce possible delays and
coordination snags along with achieving a greater degree of reliable inter"departmental information exchange.
.rod!:tion C1p1:ity & C1p1"ility
=ith the installed capacity of 413 looms, the plant can produce more than 4,233,333 )inear Meters per month, with
a wide variety of fabrics# from percales to satins, from twills to drills, from rip stops to high thread count fabrics,
stretch fabric and much more.
All looms have a high speed connectivity facility through )ocal Area *etwork along with being =eb"enabled. (!)
customers will be able to monitor looms allocated to their contracts, and also view what articles are being run on
what looms and at what efficiency, whereby correlating the delivery snags, if any, on one hand and 8uality related
issues on the other. ?or this organi-ation customer confidence is the key to success, and providing this transparency
to their customers can facilitate the business on the commercial side as well as providing (!) production team to
strive for either improving their performance or marinating the 8uality which is for the satisfaction of the clients.
Inspe:tion System
(olony !ndustries $%vt.' )imited is the pioneer in the entire !ndo"%ak region in deploying the Uster ?abri6can in its
facility. The ?abri6can replaces the traditional manual inspection by a far more consistent and ob0ective data
collection. This system is capable of inspecting ?abric production of a 1;3 loom facility. .eploying this machine in
this facility was a well thought"out decision as this system is not sub0ect to fatigue, downtimes, or outside
influences. !t provides consistent checking the entire 8uantity of fabric fed through it. There is no negligence factor,
no favors to be made, no rules to be compromised besides providing a big pool of information that is humanly not
possible. All faults are JU5K tagged so that mending operation can be performed $if necessary' at the exact location
of the fault.
The machine can be programmed to inspect as per the re8uirements of the customer and those criterion saved for
future reference and use. The inspection reports can be made available to client on the web so that pre"screening of
their consignment can be done timely, effectively and in"synchroni-ation with their production plan. !n order to
cater for our direct .ye"ouse customers, we have the J(UT O%T!M!LAT!O*K option available. As soon as the
inspection is complete, the system performs the optimi-ation process and suggests the best possible way to cut the
fabric to get the highest number of pieces of the Optimal Muality.
.o4er Gener1tion & He1t Re:o8ery System
(olony =eaving Mills is fully"contained and self"sufficient facility with its in"house continuous and reliable power
generation facility with 433F backup power arrangement. The %ower Aeneration department with its eat Cecover
6ystem is designed to generate enough hot water to fire the chilling system for the entire facility, along with
producing more than 23F of the steam re8uired for the si-ing operation.
Mem"erships
)ahore (hamber of (ommerce !ndustries
A%TMA $All %AB!6TA* T/NT!)/ M!))6 A66O(!AT!O*'.
.rod!:ts
1rn
The company is producing 433F cotton yarn, 433F %olyester yarn, 433F 5iscose yarn and mixed yarn of various
counts ranging from coarser *umber /nglish 13 count to finer *umber /nglish D3 count.
F1"ri:
(!) is producing Arey ?abric with following fiber types, for abbreviation9s detail see AlossaryH
Or?1ni21tion1l Str!:t!re
The concept of an organi-ation chart shows what positions exist, how they are grouped and who reports to whom.
The organi-ational structure should be designed to provide both vertical and hori-ontal information flow as
necessary to accomplish the organi-ational overall goals. !f the structure doesn9t fit the information re8uirements of
the organi-ation, people will have either too little information or will spent time on processing information that is
not vital to their tasks, thus reducing effectiveness.
(olony Aroup9s structure is a hybrid of divisional and functional structures# divisions are based on two products
+arn $6pinning ?acility' and Arey ?abric $=eaving ?acility'.
Top positions are as followsH
6ee Annexure 4.4
Gro!p .ro6ile
$o1rd o6 -ire:tors
Mr. Mughis A. 6heikh $(hairman'
Mr. ?areed M. 6heikh $(hief /xecutive Officer'
Mr. Larrar !bn"e"Lahoor
Mr. M. Akram Mureshi
Mr. *a0eeb Ahmed
Mr. Muhammad 6hakeel
Mr. Tahir Mahmood
Re?istered O66i:e
M. !smail Aiwan"e"6cience
6hahrah"i"7alaluddin Coomi,
?ero-epur Coad )ahore O 2;,33
%honeH $3;1' 2<2D:<3 O 1
?axH $3;1' 2<,G1;<
Colony Ind!stries 7.8t09 Limited
(!) consists of two divisions =eaving I 6pinning# following is the top positions in (!).
See Annex!re >0@
A::o!nts -ep1rtment
Accounts .epartment keeps track of all transactions. /ach and every sales confirmation note and purchase
confirmation notes come to Accounts .epartment for making timely payments and recovery of money from buyers.
!nternal auditing is also another responsibility of Accounts .epartment for smooth and clear handling of operations.
See Annex >0(
S,OT An1lysis
Stren?ths#
!6O :334"1333H
6trong 6ecurity 6ystem
igh 8uality product
)atest mechani-ed machinery.
Tremendous market positioning
ighly 8ualified and skilled
management
ighly Motivated =orkforce
Ade8uate financial resources
(ompetitive advantage
Own power generation plant
,e15nesses#
igh cost of production
(entrali-ed decision making
)ess promotional activities
Opport!nity#
Organi-ation (an expand product
lines
Organi-ation (an capture new
market segments around the world
Organi-ation (an reduce the cost
by proper utili-ation of resources
Organi-ation (an hire more well"
educated and experienced person
Thre1ts#
*ew /ntry of competitors
&uyer needs demands changes
%olitical instability
(hange of government policies
Alobally /conomic instability
-et1il o6 S,OT An1lysis
Stren?ths#
ISO )%%>'@%%%#
(TM) is certified under !6O :334"1333 and so it meets the re8uirement of international standard and has a value in
the mind of concern people.
Stron? Se:!rity System
(TM) has a greater security system. There are different hidden security cameras which capture all the moments.
Hi?h C!1lity prod!:t
(TM) is using advance technology like they have modern machinery by which the 8uality of product produced is
very high.
L1test me:h1ni2ed m1:hinery0
They are using modern looms which they have purchased from 7apan, Aermany and ?rance. And by using that
latest machinery the productivity of the employees are very high.
Tremendo!s m1r5et positionin?
(TM) is one of the %ioneer Textile Aroup in the %akistan so it has got the position in the mind of its customer. And
being an old textile company people are loyal with it. (TM) has a better position in the mind of its customers.
Hi?hly C!1li6ied 1nd s5illed m1n1?ement
The management of (TM) is skilled they have hired the foreign graduate people in their management and also
experienced people from all over the country.
Hi?hly Moti81ted ,or56or:e
They are providing better pay to their employees and also bonus to them which motivate the workforce and they are
doing well at work setting. Apart from that they are giving their employees facilities of (onvenience like personal
car along with fuel provided by the company too, which is a big deal for motivating the employees.
AdeC!1te 6in1n:i1l reso!r:es
The owners of (TM) are one of the richest persons of the %akistan and they have more plant and investment in
other industries like 6ugar Mills, and 6hare Market. They have ade8uate financial resources to meet their
re8uirements.
Competiti8e 1d81nt1?e
&ecause it is an old textile originating from 4:239s and it has still kept its position in the textile market on all
competitors nationwide, which is its competitive advantage.
O4n .o4er Gener1tion .l1nt
They have own power generation plant and (TM) is the pioneer in the private organi-ation who start the power
generation.
,e15nesses#
Hi?h :ost o6 prod!:tion
The production cost is high because of un"proper utili-ation of resources.
Centr1li2ed de:ision m15in?
The decisions are made by the upper management which is weakness of the (TM) because they have not any
proper idea about the prevailing situation and their decision can be un"fruitful for the company.
Less promotion1l 1:ti8ities
The advertising and promotional cost of the (TM) is very low it can take advantage for more turn outs.
Opport!nity#
Or?1ni21tion :1n exp1nd .rod!:t Lines
(urrently the (TM) is not dealing in knitwear they can expand their product line by producing knitwear. They
have plants and the extra cost for the production will be low for (TM). They also have better market repute.
Or?1ni21tion :1n red!:e the :ost "y proper !tili21tion o6 reso!r:es
!f the cost of different matters which are not been utili-ed properly, is controlled by the (TM) management they
can produce more at less costs. !t has to develop a further systematic process for controlling and managing
resources.
Or?1ni21tion :1n hire more 4ell'ed!:1ted 1nd experien:ed person
They can take advantages by hiring more skilled people and they should hire young, fresh and energetic staff for
their betterment. &ecause being human, you always have the room for betterment in any aspect.
Thre1ts#
$!yer needs dem1nds :h1n?es
&ecause of the research I development the design and the product of (TM) is 0ust satisfactory as compared to
competitors in the global environment and they are not fulfilling the demand of customers.
.oliti:1l inst1"ility
%olitical instability effects the (TM) because of the 8uota system, Aovernment can restrict the (ompany to export.
Ch1n?ed o6 ?o8ernment poli:ies
Aovernment policies are changing day by day so it is always a threat for not only (TM) but for any company to
survive in such a environment.
Glo"1lly E:onomi: inst1"ility
&ecause of the economic instability the (TM) and the J.umping systemK which is rising on daily basis in the
world can create many problems for the company and any uncertainty in the world like :P44 may also affect its
overall exports.
.EST An1lysis
.oliti:1l Inst1"ility
The political situation of %akistan is not satisfactory. .ue to the rapid change in the Aovernment every government
sets its own new trade policies.
Aovt. should apply sustainable policies for the beneficial of the exporters as well as the investors.
E:onomi: sit!1tion#
The economic condition of %akistan can also affect the foreign investors increasing inflation rate make the cost of
production high and thus reduce the profit margin of the investor.
So:i1l sit!1tion#
The change in the lifestyle of the people affects the growing demand of the (TM) products. The change in the
lifestyle and needs in different demographics also affect the demand of the customers.
Te:hnolo?i:1l 61:tor#
Technological advancement in all the sectors of the country has changed the entire socio"economic environment.
/specially in the textile sector there is a lot of technological development.
(TM)9s excellent computeri-ed machines and devices have made extension in its present setup of well advanced
technology imported from 7apan, Aermany and ?rance.
MAR+ETING STRATEG
(TM) is a group starting from 4:239s which means that it is an old and pioneers of Textile industry in %akistan. On
its purchase side as ! have worked for a whole week in +arn %rocurement department of the Aroup, which is a small
branch of Marketing department. ! found their business to be such a vast that they ordered their raw material on
telephones, they made contracts with the new companies and those companies having already contracts had no need
to made. The main which were daily paid were mainly to the !(! for polyester and then to companies like *ishat,
6itara Textiles and many more companies and groups like that. Their fiber is very famous not only nationally but
internationally as well.
6econdly on /urope sector this group is very well known as they purchase machinery from them and then they
supply Methane to them, which is used in mixing with petrol. Though it is a by"product of sugar sector yet it is
branch of the same company. This is helpful for the Textile division too.
The past year has been tough for the textile industry as competition is increasing steadily and margin of profit is
becoming smaller day"by"day. Our competitors from Asia have come up in a big way with lower prices resulting
from lower overhead, cheaper and better raw materials and machinery.
(ountries like (hina, !ndonesia, !ndia and &angladesh played an active role in the fabric market. !mprovement in
8uality and production capability was the main area of concentration.
Market for +arns and Arey fabrics was diversified to increase the customer base and reduce dependency on the ?ar
/ast. !n this effort business with Malaysia, Borea, Taiwan, UB and 6outh America was initiated in case of +arns.
!n case of Arey ?abric market business was initiated in 6outh Africa, *orth America, 7apan, !taly, ?rance, and 6ri
)anka etc. %roduct range was also increased to cater to the differing needs of the buyers. ?ancy and special items
like .obby .esigns, &edford (ords, and (aviar Twills and stretch fabrics were developed which are being sold at
premium prices.
(TM) has constantly updated our machinery, replacing old machines with new ones upgrading the existing set"up,
leading to better efficiencies and 8uality products.
)eaving behind the traditional way of doing business and in our 0ourney towards excellent it has consistently
expanded its buyer base and explored the different markets around the world.
Beeping in view demand of the =orld market, (TM) pursued its strategy of value addition and reducing the
dependency on Arey ?abrics and Arey +arn.
aving the foresight to assess that in coming year9s value addition will be the thing of the future, (TM) worked
towards the achievement of its goal of future increasing its capability in value addition.
The export of processed fabric and made"Ups has shown market improvement as compared to last year.
!t has placed us successfully in the middle to upper end of the market. Our strength in /urope is the curtain division.
This included yarn dyed dobbies, engineered confections, different finishes and embellished products. The plan is to
continue with this winning strategy and at the same time we are trying to find new clients in the high end.
=e are also exploring business opportunities in countries like 6pain and ?rance where (TM) has very little
business at the moment.
*orth America is the star market for (TM)# it9s a new market for it after breaking up the exclusive arrangement
with our previous sale set"up. The 8uota is coming down in 1332 and we have started to prepare for it internally as
well as for the external environment. &edding is the bulk of the home textile business.
(TM) is in the process of updating its machinery to cater the needs of the wider width fabric re8uirement for U6A
bedding business. (TM) is also taking up the social accountability issues very seriously, which are so dear to the
American consumers. A lot of big brand U6 companies have visited us and are discussing the possibilities of a 0oint
venture.
The opportunities are limitless, we have to review and analy-e them very thoroughly to associate with the right
people in the long run. !n shorter term we are building a small amount of 8uota, which will give us recognition as a
bedding supplier.
(TM) is very strong in non"8uota categories like curtain and table linen. These categories are best served with new
product development $*%.'. (TM) will coordinate the effort for *%. by all markets to optimi-e results. (TM)
has achieved the highest sales in 4:::"1331 for *orth America market.
On top (TM) has developed more direct and closer relationship with its end customers. Oceanic has been our most
lucrative and mature marker. !n business terms it is our Jcash cowK market.
%rimarily due to being a non"8uota market it had no real limitations in this market. .espite economic problems in
that region, it has maintained our sales figures in the year under review. This market is a good design source for
other markets, which is helping us to maintain our print volumes.
Middle /ast market is composed of 6outh Africa and the new emerging markets like the UA/, /gypt, 6audi Arabia,
and 7ordan etc. (TM) has dedicated new staff with fresh energy for the emerging market.
They have successfully broken the ground and we have very strong faith that these markets will give us good
volumes in the near future. =e are also targeting printed apparel business for the first time. The latest addition is the
most ambitious Apparel .yeing plant setup in Caiwind Mill, which has started its production.
The effectiveness and productivity of this plant will be further enhanced, as (TM) moves towards becoming a
more vertically integrated organi-ation.
(TM) has increasing its profitability by working efficiently, procuring better raw material and most importantly
kept a very close association with its customers.
!t visits its business partners fre8uently and provides them with the best service possible. All of the above
mentioned points led to strengthened relationship with its business partners making it very difficult for its
competition to penetrate into its market share.
(TM) has provided its staff with better working environment and facilities, which enhances its efficiency and
output.
At (TM), it is prospering due to its professional commitment towards excellence and giving the best results at all
times and against all odds. !ts marketing and production team co"ordinates all the time and its focus remains on
maintaining its position as the market leader in the textile sector of %akistan.
Competiti8e Str1te?y
As for as (O)O*+ Aroup is concerned its own name is its competitive advantage. &eing an old group it has its
own name in the field of Textile as well as sugar. As ! have told in the above segment that it has business of
Methane gas in /urope it is its competitive advantage. As dealing in one different side gives you edge over
competitors in other field.
?urthermore, its financial assets are also an edge for the group. As being late in paying any party makes future
problems which result in delivery of any product to be late and resulting in bad image of the company.
(O)O*+ group buys raw material from all the groups like *ishat, 6itara Textiles, Bohinoor Textiles and many
more companies like that ! cannot name all of them as it is a huge number. =hich automatically makes links better
and which tells its mostly products are exported. And for sure they are of finest 8uality.
!t9s one competitor is the Cupali group.
.URCHASE ACCOUNTING SSTEM

?or abbreviations see AlossaryH
.!r:h1se .ro:ed!re 6or Mill
=hen a ?loor 6hop in"charge $?oreman on the maintenance and
ead 7obber on the %roduction side' needs to purchase one or
more items to facilitate his sphere of work, he will fill out a %.*.
A copy of %.* used in our company appears in Appendix :::.
The %.* has three leafs. ?irst copy is for the %urchase
.epartment, second for the 6tore at Mill, and third for the
.epartment originating the demand. A good 8uality (arbon %aper
should be used so that even the last copy is legible.
At the initial stage there are six columns that are filled by the
authori-ed staff of the concerned .epartmentP6ection. Those six
columns being .epartment, 6r. Q, !tem (ode, .escription, UOM,
and Muantity .emanded.
The company is divided in to five (onsumption .epartments. This
division is done in order to simplify identification of consumption
patterns, allocation and analysis of wages I salaries, and
convenience in &udgeting. The .epartments namely areH
Sr0 D -ep1rtments Code
4' ead Office 34"33
1' Administration 31"33
G' 6pinning 3G"33
;' 6ervices 3;"33
2' Cesidential (olony 32"33
The .epartmentP6ection code format adopted by our company is
::"::.
))'))
-ep1rtment Se:tion
Main .epartments always have J33K in place of section designator.
?or example, 31"31 signifies that the -ep1rtment is
Administration and the Se:tion is Time Office. owever, when we
want to refer to the Administration .epartment the code used will
be J31"33K, meaning that the code relates to a Main .epartment.
A 6tore !tem (ode )ist $6!()' sorted on !tem (ode as well as
.escription also containing the Unit of Measure $UOM' of each
item in front of the .escription is supplied to the 6tore !n"charge,
Manager $%IA', /lectric /ngineer, Mills Manager at the Mill, and
%urchase Officer at the O). *ew !tems added to 6tore !nventory
$6!' from time to time will be added manually to the list by those
who have been issued the 6!(). At the beginning of every Muarter
a new 6!() be issued to all concerned.
.-N No0H This is a se8uentially controlled five digit distinct
number allocated to each %.* document.
6tarting with 33334 to the first %.* of the financial year up to
::::: during that financial year.%.* numbers is controlled by the
6tore !n charge in the %.* *umber (ontrol Cegister. !f O)
issues a %.*, the %urchase Officer will ask the 6tore !n charge to
allocate his demand a %.* *umber. *ext number in se8uence will
be allocated which will be written on the %.* by the %urchase
Officer. The 6tore !n charge will make a note of this that the %.*
was made by the O) staff.
-ep1rtmentH The 6ection that makes the %.* fills"in its complete
code. !f Rin? M1inten1n:e is filling the form, it will enter the
code %('>% signifying that 6ub"6ection JCing MaintenanceK of
6pinning .epartment is demanding what is endorsed in the %.*.
The 6ub"6ection9s description will be written in front of the blank
space provided for description. The Main .epartment9s name will
not be mentioned in this space.
Sr0 No0H The first column to be filled in a %.* will be 6erial
*umber that appears in an abbreviated form $6r. *o.'. Under this
head, a whole"number in a se8uential order will be filled"in for
keeping a count of item demanded in a particular %.*. !t will
always start from 4 and go up to a maximum of :, as there is a
provision of only : rows in a %.* for entry of items.
Item Code# ?or various reasons including statistical analysis and
M!6 the !tem (ode has been broken into three numeric parts, each
part separated by a dash J"K.
The !tem (ode adopted in our organi-ation is in the format ::"::"
:::. 6tore (ode combines with the !tem (ode to form the !T/M
(O./.
))'))')))
Store Se:tion Item N!m"er
Store S!"'Se:tion

.ROCESS OF ARN
.RO-UCTON
See 6i?!re in Annex!re >0(
%roduction manager services the daily production schedules and
try to work according to the demand to schedule. There are many
steps involved in production of the yarn.
$LO, ROOM
The first step is that the raw cotton is sent to &low room for the
8uality of the cotton. Then it is sent to the )ab for 8uality check.
ere basic 8uality and other contents are checked in proper form.
!f one kg cotton is put into this room only ,33 grams cotton goes
into further production process and rest goes in wastes. ere
following are wastes excluded,
&PC Autter
.ropping
CAR-ING
!n this step the cotton is carded. The production manager checks
the cotton and it comes in the drums type containers. These drums
rotate and cotton comes out in specific form called as JponesK.
ere about 2F cotton goes in the shape of waste. =aste extracts
from this process are called by#
(ard fly
COM$ING
!n this step the cotton goes for combing. (ombing is a process to
comb and wax the cotton for softness purpose. ?ollowing wastes
are excluded from cotton in this process#
6hort ?iber
(omber *oel
SIM.LEE
After the attaining of (otton from (ard and (omb processes,
which is also weak this is further passed back to blow room
process called Coving and then cotton is sent to Cing process.
RING
!n this step small pones are developed for further process and
wastes are made out named#
%hnemaphil
AUTOCONING
!n this step the manager in specific intervals checks the 8uality of
carded pones from which yarn is produced in shape of cones by
passing through machines for this purpose. ere also some wastes
are extract called#
Oily hard waste
ard waste
.AC+ING
(ones manufactured in proceeding step are now kept in moisturi-e
room for absorbing re8uired moisture. (ones are packed into bags
or cartoon according to customer re8uirements.
.URCHASE -E.ARTMENT
The purchase department makes all purchases. /very demand from
different departments for different items is forwarded to store and
from here it is forwarded to purchase department if needed to
purchase. !t has a main store in factory.

,OR+ -ONE -URING INTERNSHI.
.uring my internship, ! worked in the following departments.
A::o!nts
M1r5etin?
A::o!nt dep1rtment
!n account department, ! managed to understand the flow of
transaction, preparation of vouchers and ledger posting.
.rep1r1tion o6 8o!:hers
!n account department under the supervision of concerned officers,
! came to know different type of vouchers being prepared and their
process of preparation. 5ouchers are written evidence of any
business transaction. The different type of vouchers being prepared
by the account department of (TM) is as under,
(ash payment vouchers
(ash receipts vouchers
7ournal voucher or ad0ustment vouchers
*ow ! will discuss these vouchers one by oneH

C1sh .1yment =o!:hers
&eing a public limited company cash payment vouchers are used
for recording the expense of less than five thousand. These types of
vouchers are prepared when cash payments are made against small
expenses i.e. repair, entertainment etc. in order to record the
expenses following entry is passedH
A::o!nt :ode n1me o6 expense 7de"it9 Amo!nt
C1sh 1::o!nt 7:redit9 Amo!nt
/vidence of expense is attached with the cash payment vouchers.
C1sh Re:eipt =o!:hers
These types of vouchers are prepared when the cashier on behalf of
the (TM) is receiving cash. owever, these types of vouchers are
small in 8uantity because ma0ority of transactions are done by
bank. On receipt of cash, cashier prepared the cash received slip.
Account officer prepares voucher on the basis of cash receipt
prepared by the cashier. !n order to book the transaction the
following entry is passed in the books.

A::o!nt :ode :1sh 1::o!nt 7de"it9 Amo!nt
In:ome A*C or re:ei81"le A*C 7:redit9 Amo!nt

A::o!nt :ode $1n5 A*C 7de"it9 Amo!nt
CheC!es :le1rin? A*C 7:redit9 Amo!nt
A-FUSTMENT =OUCHER OR FOURNAL =OUCHERS
These types of vouchers are generally prepared in the following
circumstances#
%urchase on credit
=riting off assets i.e. depreciation store consumption etc.
Cectification of mistakes or omissions
*ow ! discuss them one by one
.!r:h1se on :redit
Aenerally raw material, stores and spares are purchased on credit.
!n order to account them for the 0ournal voucher are prepared by
the concerned account officer
A::o!nt :ode .!r:h1se A*C 7de"it9 Amo!nt
A::o!nt p1y1"le A*C 7:redit9 Amo!nt
(opy of the invoices is attached with vouchers#

,ritin? o66 Assets
These 0ournal vouchers are prepared in order to change the assets
to expense for the preparation of monthly accounts.
To account for depreciation of fixed assetsH
A::o!nt :ode -epre:i1tion A*C 7de"it9 Amo!nt
A::!m!l1ted depre:i1tion A*C 7:redit9 Amo!nt
To account for the raw material consumptionH
A::o!nt :ode r14 m1teri1l :on:erned A*C 7de"it9 1mo!nt
R14 m1teri1l store A*C 7:redit9 1mo!nt
To account for store consumptionH

A::o!nt :ode store :on:erned A*C 7de"it9 1mo!nt
Store 1nd sp1res A*C 7:redit9 1mo!nt
To account for store consumptionH
A::o!nt :ode store :on:erned A*C 7de"it9 1mo!nt
Store 1nd sp1res A*C 7:edit9 1mo!nt
To account for accrued expensesH
A::o!nt :ode expense A*C 7de"it9 1mo!nt
A::o!nt p1y1"le A*C 7:redit9 1mo!nt
!n additional to above referred kinds 0ournal voucher is also passed
to rectify the mistakes made in voucher preparation or posting.

M1r5etin? dep1rtment
The main purpose of this department is to locate buyers through
agents. 6o marketing starts from locating the buyers, making
contract, opening of )(, shipment and in last payment is received.

Le1rnin? 1s 1n
Internee

-!ties
As ! have told above that ! had prepared vouchers of different
types. Then ! used to take vouchers of Mr. Tahir, Miss 6ha-ia and
Mr. Cam-an to audit and brought back audited vouchers from the
Audit. (opied che8ues whose payments were to be made on that
day. Then ! brought a few times !nvoices for sales tax from
marketing department. Maintained record of filing with Mr.
?aroo8ui. Then in +arn %rocurement ! made worksheets for the
parties who do not have tax exemption certificate and their tax has
to be deducted. *ext in purchase department, ! had only worked
for filing their AC*9s and maintaining them in a serial manner. !
have attended calls for a person not seat or else.
A::omplishments
As an !nternee ! have done all the works diligently which ! have
mentioned above. !nstead ! had done other works as well which a
person on the 0ob never performs, like someone asks me to take
vouchers from Audit like ! am hisPher Assistant ! had done that and
never said no. As ! have seen those employees which went to
Audit and the other asked to bring my vouchers as well and the
person says no ! have my own work you should better go yourself.
That is the thing which ! wanted to share in this regard.

Ne4 +no4led?e A:C!ired
One thing regarding new knowledge is what ! have shared in
Accomplishments. *ext one important thing regarding knowledge
ac8uired is that what you are studying is not related to the 0ob
duties you are doing are in future you have to do honestly. +ou
have to understand that work from start, in case of an employee
leaving a company and 0oining other he also will have to
understand the work in new company. ! have got a lot of sense
regarding working in an organi-ation where everyone is working
out for cutting your roots. ow to work in a conservative
environmentR ow to behave in any situationR ow to negotiate
with any person on 0obR

.ro"lems En:o!ntered
=ell ! don9t have to face as many problems as ! will have to face
when ! will go on 0ob. ?irst few days were hard but ! cannot say
there was any problem. /mployees there were very cooperative
and they asked me to ask as many times about a thing till you are
not cleared about that. They guided me on every issue and asked
me asPlike a big brother to learn as much as you can. ! am really
thankful to all of them.

Imp1:t o6 Experien:e on my C1reer
This experience definitely effects my career positively. As ! would
not have been come to know about the atmosphere of any
organi-ation, this experience has told me a lot about environment
of organi-ation and behavior of different type of people. All of this
edge goes to my !nstitute9s good understanding about students
future.

RECOMMEN-ATIO
NS

Colony Textile Mills Limited#
The first and most recommendation is to eliminate one man
show prevailing in the company
There must be a proper system for training of employees and
supervisors.
!mportance should be given to employees9 turnover.
.ifferent training courses should be arranged for the up lifting
and improving the 8uality of work for employees.
There is also a problem of work overload for the employees and
it should be control properly so that the employees are motivated.
As ! have seen employees working till D %M. And ! have come to
know that sometimes they work till 4 AM late night without any
incentive.
/mployees should be paid extra for the work which they do
after working hours.

Annex!re

COLON CEOGs

Fi?!re >0>

COLON -i8ision 4ise
Fi?!re >0@

(/O
$(!)'
Technical .irector
$=eaving'
(hief Technical Officer
$6pinning'
Marketing Manager
%roduction Manager
Accounts Manager
6ales Manager
%roduction Manager
Accounts Manager
?inance Manager
(ommercial .irector
M!6 Manager
Manager %ersonnel I Administration

A::o!nts -ep1rtment

Fi?!re >0(


.ro:ed!re o6 1rn m1n!61:t!rin?
Fi?!re >0A


Annex >0;

e1r ended (%th Septem"er @%%< @%%B @%%&
*o. of spindles installed 2:,133 <:,D,; 4<<,;;D
Average no. of spindles worked ;<,3D2 ,;,4:2 422,GG3
(apacity at 13 count$Bg9s.' 4<,<<D,333 11,D;4,331 ;D,,,:,442
*o. of shifts worked 4,3:1 4,3;3 4,3:2
Actual production converted at 13 count 4;,,21,,D3 4D,<3G,G<D ;<,G:;,;;,
(apacity Utili-ation D1.33F D1.33F :<.GDF
Gloss1ry
COT >%%H Cotton
.. >%%H .olyester
.C $lend o6 .olyester & Cotton
C=C Chie6 81l!e :otton
.= .olyester I =is:ose
Mixed -i66erent m1teri1ls in ,1rp & ,e6t
.!r:h1se A::o!ntin? System
.-N .!r:h1se -em1nd Note
GRN Goods Re:eipt Note
SIN Store Iss!e Note
SRN Store Ret!rn Note
UOM Unit O6 Me1s!re
HO- He1d O6 -ep1rtment
HOL He1d O66i:e L1hore
G*L Gener1l Led?er
I
t
e
m
C
o
d
e
-
i
s
t
i
n
:
t
C
o
d
e
A
l
l
o
:
1
t
e
d
t
o
1
n
I
n
8
e
n
t
o
r
y
I
t
e
m
-
e
p
1
r
t
m
e
n
t
C
o
d
e
-
i
s
t
i
n
:
t
C
o
d
e
A
l
l
o
:
1
t
e
d
t
o
1
-
e
p
1
r
t
m
e
n
t
Se:tion Code -istin:t Code Allo:1ted to Se:tion o6 1 -ep1rtment
Store Item Code List SICL
MIS M1n1?ement In6orm1tion Systems
$i"lio?r1phy
So!r:es 6rom 4here I h18e :olle:ted d1t1#
Miss .1r8een A"id13 @%%A3 .rod!:tion A::o!ntin? & M1n1?ement
System3 Inspe:tion System3 Introd!:tion3 Internship Report on Colony
Textile Mills Ltd. L1hore
Miss F18ed I661t3 @%%<3 S,OT An1lysis3 .EST An1lysis3 Internship
Report on Masood Textile Mills Ltd. Faisalaad. F1is1l1"1d
Mr0 $h1tti F1mil M!h1mm1d3 @%%<3 M1r5etin? Str1te?ies3 Internship
Report on !ishat Textile Mills Ltd. L1hore

Internship Report On Colony Textile Mills Limited

Enviado por

Dados do documento

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Internship Report On Colony Textile Mills Limited

Enviado por

Direitos autorais:

Formatos disponíveis

www.vustudents.ning.

Você também pode gostar