View
276
Download
2
Category
Preview:
Citation preview
7/31/2019 Internship Report Metco
1/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 1
Profile
Metco Group was formed in 1971. Three well-established families came together to pool their
resources and form a partnership. The group was armed with massive financial strength,
extensive business experience and a solid market reputation. The three families that make up theMetco Group, jointly and equally own and manage the business affairs of the group are as
follows.
The Haji Mohammed Family:
One of the 5 families who owned and controlled Habib Bank Limited, the largest bank in
Pakistan, and continued to be on its senior management team until nationalization in 1974. The
Mohammed family wanted to diversify into commerce and industry, and wanted to form a
business group away from its banking empire.
The Haji Rajabali Premjee Family:
Pioneers in the steel business, who at that time owned Haydri Steel Industries. Haydri was a
very well known name in the steel trade and manufactured steel bars for the local market and
government projects. The Premjee family wanted to expand their steel business and thus joined
up with the other members of the Metco Group.
The Haji Rahmatulla Parekh Family:
A very senior banking family, who had immense respect in the banking and business
community. The Pakekh family held key posts in the banking sector. They too were looking for
diversification. The Parekhs, combined their strengths with the others of the Metco Group.
The Metco Group, over the last three decades has enjoyed tremendous growth and has earned a
reputation for integrity and professionalism. The group is well recognized and trusted among the
business circles of Pakistan. The group has business affiliates/associates all over the world in the
areas of shipping, commodity trading, and textiles. The Metco Group achieved a milestone in itsachievements in 1997, when the Groups combined sales crossed Rs 1 Billion. Since then the
Group has further expanded into several more businesses and has further increased its sales and
profitability.
7/31/2019 Internship Report Metco
2/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 2
Companies
Metco Shipbreakers
Metco Shipbreakers is the flagship company of the Metco Group, established in 1971 when the
ship breaking industry was envisioned to help meet Pakistans growing infrastural development
needs. The group set up ship demolition facilities at Gaddani beach, 50 Kms from Karachi,
Pakistans largest commercial city. During the last 30 years, Pakistan has transformed it self into
one of the largest shipbreaking nations of the world. Metco Shipbreakers have made substantial
investments in modern technology and machinery and has captured 15% of the entire market
share of the industry. Mecto Shipbreakers has a monthly breaking capacity of 25,000 metric tons.
Metco Shipbreakers imports large bulk carriers and oil carriers (VLCCS) for demolition
purposes .The Company has over 10 acres of beachfront property were the ship breaking activity
takes place.
Zulfiqar Metals
During the late 1970s Metco Group diversified into several other steel, and steel related
products, and formed Zulfiqar Metals. To date the company has imported several large
consignments of shredded scrap, Pig Iron and premium quality MS plates. Steel products are
imported from the US, UK and CIS countries. The company due to its vast experience was
awarded distribution rights/dealership of products manufactured by Pakistan Steel, the largestgovernment steel industry. Zulfiqar Metals receives quotas of several products, including steel
billets and HRC coils.
7/31/2019 Internship Report Metco
3/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 3
Euro Traders
Established in 1995, Euro Traders was set up as the commodity trading arm of the Metco Group.
Cement: Euro Traders started by entering the cement business, and imported several shiploads
in the mid 1990s when the country faced a shortfall of cement.
Rice: Euro Traders in 1997 diversified into the rice trade. A 100,000 sq feet warehousing
complex was established for the storage and processing of rice. The company due to its excellent
quality control systems started supplying merchants all over the world and has a capacity to offer
entire shiploads of rice cargo at a time.
Wheat: In 1998 Euro Traders entered the wheat trade by linking up with the Australian Wheat
Board, a premium supplier of wheat, and has imported shiploads of wheat from Australia.
Fertilizer: Euro Traders, in 1999, further expanded into the fertilizer business. Euro Traders has
established a large dealer network and imports DAP fertilizer to Pakistan regularly and to date
has imported over 100,000 tons of DAP fertilizer.
Sugar: Euro Traders in 2000 yet again entered a new business, the imports of refined sugar.
Euro traders mainly imports sugar from China, Thailand and Dubai, as and when there is a short
fall in Pakistan, and has imported entire shiploads at a time.
Cotton: In 2002 Euro Traders added raw cotton exports to its list of products. Euro Traders has
several quality experts on its purchasing team and has buying agents in several countries namely,Bangladesh, Thailand and Indonesia.
Pulses: Euro Traders in 2003 identified another commodity for trading by importing large
consignments of pulses, since there is continuous shortfall in Pakistan. Euro Traders deals in
Chick Peas, Yellow Peas and Kidney Beans.
7/31/2019 Internship Report Metco
4/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 4
Metco Textile
Metco Textile is a state of the art spinning factory located in Nooriabad, 100km from Karachi.
Metco Textile was established in 2004 at a cost of Rs 550 million. The company has installed
brand new machines mainly from Reiter and Murata. The company has 20,000 spindles installed,equipped with the latest lab facilities for quality control of its yarn production. Metco Textile is
spread over 18 acres of land with extensive warehousing facilities, it has its own captive 5.4
Mega watt power plant and 650 workers. The company is producing both weaving and hosiery
yarn. Metco Textile in a short time has become a market leader for reliability, good quality and
consistency. The company has buyers locally in Pakistan and overseas. Due to its almost instant
success Metco Textile has finalized an expansion program costing Rs 150 million and work is
underway to add 5,000 more spindles by Dec 2005, totaling Metco Textiles capacity to 25,000
spindles.
COTTON PURCHASE DEPARTMENT
Cotton purchase department is most important department in textile industry. Quality of yarn
depends upon cotton that has been purchased. It becomes most important when there is business
of export. There is no question of compromise on quality. Because your minor mistake may
result in huge losses. Moreover you will loss your credibility. From director to cotton selectors
all are involved in cotton purchase process.
PURCHASE PROCESS
The following steps are involved in the purchase of raw material i.e. cotton.
7/31/2019 Internship Report Metco
5/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 5
Sample from different
su liers and
Sample Testing
Agreement with the
Part
Writing delivery order
for factor
InGate pass + D.O +
Purchase Invoice +
Purchase Requisitions
are supplied to accounts
Demand of purchase
from mill
7/31/2019 Internship Report Metco
6/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 6
VISIT OF COTTON SELECTORS
The cotton selectors of METCO visit the cotton ginning factories. Cotton selectors may visit the
factories on their own behalf and some times the cotton factories call them. Their visits are very
important because purchase process starts from here.
SELECTION OF SAMPLE
Samples are selected from huge amounts of cotton. Samples are taken from different suppliers.
These samples are then tested. The most suitable sample at lowest price is selected for Purchase
of cotton.
As there is centralized management system so the Director himself takes the decision of
selection and purchase of cotton. In other words Director is final authority in making decision.
STORE PURCHASE DEPARTMENT
The store purchase department is headed by Stores Incharge. The setup of purchase department
is as under:
Director Purchase Officer Assistant Purchase Officer Purchase Clerk
The store purchase department is responsible for the purchase of items like
Spare parts of machinery, store and Packing material spares, electric items, oil and lubricants,
Stationery items, Building Material, and General Store.
7/31/2019 Internship Report Metco
7/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 7
DOCUMENTS
DOCUMENTS USED IN PURCHASING PROCESS.
Demand Requisition.
Invoice of Purchase Delivery Order In Gate Pass
PROCEDURE
The following is the procedure for local purchase department.
The purchase department receives the demand requisition from store in charge at store atmills this is in fact an intention or requirement of commodities at mill
The purchase demand requisition contains a full detail of quality and quantity ofcommodities required. It also contains price detail of goods purchased previously
The purchase department on the basis of indent does an inquiry for rate from at least twosuppliers from approved suppliers list.
After inquiry Purchase Manager discusses with Director for approval of rate and othernecessary requirement.
After the approval the Purchase Department purchases the items from suppliers and sentthem to the mill with three copies of delivery orders
In case of no rejection of items store in charge send one copy of delivery order back tothe purchase department along with one copy of In Gate Pass. Store in charge also keeps
a copy of delivery order and in Gate Pass for his own record.
In case of rejection of items store in charge sends all copies of Delivery Orders withitems back to the purchase department at Karachi Head Office of Metco Textile
.
7/31/2019 Internship Report Metco
8/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 8
ACCOUNTS DEPARTMENT
Accounting is the art or science of interpreting, measuring, and communicating the results of
economic activities whether you are paying your phone bill, balancing your checkbook,
preparing your income tax return or managing an international corporation, you are working with
accounting. Accounts Manager makes the important financial decisions with consultation of
Director and Chief executive of company.
Record of all departments like import department, Export department, Purchase and sale
department, are maintained here. So this department feels a burden of work. Accountant is very
much busy person who gives instructions to six members of finance department and checks their
work time-to-time .His ten-year experience has made the work easier for him. All types of tax
rates, recent changes in tax policies, different codes, companies names are on his fingertips.
The accounts department is responsible for the entire accounting process of the organization
regarding the recording of transactions, designing the accounting policies and accounting system,
preparing financial statements and computer application. If we consider a company a cell then
we can say that accounts department has role of nucleus.
Without accounts department there is no possibility of doing business even sight weakness on
the part of accounts department can badly effect the performance of whole organization.
FUNCTIONS OF THE DEPARTMENT
Very first and an important function of accounting department is recording the business
transactions on vouchers. This is also called process of vouching. This is made for internal
record keeping. Auditors specifically audit vouchers. Wrong vouching will lead to error in the
system and ultimately create problems.
From vouchers information is recorded in daybook and cashbook. As each voucher along with itsinvoice, DO and other necessary documents are kept in the record room so daybook is one that
can give information about parties DR and name of account CR along with amount.
7/31/2019 Internship Report Metco
9/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 9
In order to see accounts in condense form ledger is used. From daybook all the entries are posted
in ledger. Ledger represents DR or CR balance of each party. So from ledger we can see amount
that is to be paid to a party or the amount that is to be received and the balance at the end of the
month. After this all the DR balances and CR balances of all the parties are posted in trial
balance. The trial balance must be equal at both sides. Otherwise there is any error in recording
the transactions. Now trial balance becomes the source of profit and loss and balance sheet.This
department also designs the accounting policies. All the work in this department is being take
place on accrual basis. The department prepares trial balance at the end of every three months
and Profit and loss accounts and balance sheet are prepared at the end of year. The financial year
ends on september30 of each year.
THE SETUP OF DEPARTMENT
Chief Accountant
Accountant
Asst Accountant
Cashier
Computer
Operator
Record Kee er
7/31/2019 Internship Report Metco
10/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 10
The accounting department is mainly divided in to following three sections:
1. Stores section2. Salaries and Wages Section3. General Accounting
ACCOUNTING SYSTEM
Accounting System at here is centralized and on accrual basis. All accounts are maintained in
Multan head office. The process of accounting system starts from the preparation of voucher.
The following are different types of vouchers prepared at Metco Textile Mills:
Journal Voucher Bank Voucher Payment Voucher Credit Voucher
JOURNAL VOUCHER (JV)
As accounting system is on accrual basis, so accounting entries are passed on journal voucher at
first step. This is also known adjustment voucher. This is prepared for adjusting entry. Vouchers
are prepared after every transaction. Accounts Manager and Director verify the voucher
respectively. If they have any question they can ask relevant person if there is no enquiry then
they will put their signatures on voucher. Now it is time to record these vouchers in books of
accounts.
BANK VOUCHER (BV)
Bank voucher is used when any transaction is made with bank . Amount may be drawn from
bank and can be deposited in bank. You can receive DR advice or CR advice from bank.
7/31/2019 Internship Report Metco
11/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 11
DR ADVICE
When issued by bank, it means bank has deducted some amount from your account or when has
been made through your account
CR ADVICE
When issued by bank to you, it means some amount has been added in your account .It normally
takes place when some foreign remittances has been received by bank in your account. This is
usually sent by your customer in foreign country to which exports has been made.
PAYMENT VOUCHER
This voucher is prepared at the time of making payments to any party. Party name is debited with
the amount to which payment has been made. Payment vouchers are used for the payment up to
Rs.5000. Payments more than this are made through bank
CREDIT VOUCHER
As name of voucher represents, this voucher is prepared when some amount is received from any
party. In this case party name is credited by the amount that has been received.
7/31/2019 Internship Report Metco
12/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 12
IMPORTANT BOOKS
Cash Book Bank Book Bought Day Book Sale Day Book
CASH BOOK
In this book cash payment and cash receipt vouchers are recorded on daily basis. The
vouchers are numbered serial wise and cash-closing balance is calculated on daily basis.
BANK BOOK
This book is maintained for all the bank accounts of the company. When any amount is
withdrawn or deposited in the bank that amount is also recorded in the bankbook. At the
end of month bank account is reconciled with the statements of the banks.
BOUGHT DAY BOOK
The bought daybook is maintained for recording the purchases made by the company. The
balances from the bought daybook are entered in the relevant supplier ledgers. At the end of
the month the balances from the bought day book is posted in the main ledger for control
purposes
SALE DAY BOOK
In this book sale bills are entered and then posted in the customer ledger. At the end of
month balances are posted in the main ledger for control purposes. When the transaction is
properly recorded in the books of accounts then these balances are posted in the ledgers.
7/31/2019 Internship Report Metco
13/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 13
The following are the types of ledgers maintained in this organization.
Main ledger Profit &Loss Ledger Customer Ledger Supplier Ledger Staff Ledger
MAIN LEDGER
It is a control ledger, which maintain all heads of accounts from which balance sheet is prepared.
All assets and liabilities accounted, profit&loss, customer, supplier and personal Ledger are
maintained in it. Posting of sub ledger is made in main ledger on closing of month. From basicbooks like cashbook, bank book, bought daybook and sale daybook. At the end of month trial
balance is prepared to check the accuracy of accounts maintained during the month by observing
the debit and credit balance as they are equal or not.
PROFIT AND LOSS LEDGER
In profit and loss ledger all accounts of income and expenses are maintained .The following are
the heads of accounts maintained in the profit and loss ledger:
Sales Account Local Sales Export Sales
Commission on sales Excise duty on yarn Export development Charges Manufacturing Expenses Administration Expenses Selling Expenses Financial Charges Miscellaneous Charges
7/31/2019 Internship Report Metco
14/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 14
MANUFACTURING EXPENSES
They are like purchase of cotton, wages and salaries, fuel and power, insurance, repair and
maintenance of plant, packing material and depreciation.
ADMINISTRATION EXPENSES
These are traveling expenses, salaries, communication expenses like fax, phone and telex,
rent, electricity, entertainment, advertising, vehicleup charges, depreciation, printing and
stationary expenses
SELLING EXPENSES
These include export expenses, corporate freight, ocean freight, trailer freight and local
selling expenses
FINANCIAL CHARGES
They are like interest on long term loan, markup on short term finances, exchange risk
coverage fee, commission on bank guarantees, letter of credit commission, excise duty on
long term and short term finances.
MISCELLANEOUS CHARGES
Miscellaneous charges include auditors fee, legal and professional charges, donations, fines
and penalties.
7/31/2019 Internship Report Metco
15/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 15
QUALITY CONTROL MANAGEMENT
Quality Control refers to setting certain standards for production and matching production with
those standards. Management of every company is specially committed to the good quality
both in production and end results. The Management of Metco has been successful in creating
and maintaining the quality culture in the organization. Daily quality report is sent to
headquarter and it is checked here. Sine 90 to 95 percent of production is exported; therefore,
it is highly intensified. Following are the characteristics of the Yarn that are checked for the
equality assurance:
Weight of Fiber Length and Strength Dia Weight and Final Yarn Evenness of Yarn Relative Humidity Temperature
7/31/2019 Internship Report Metco
16/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 16
EXPORT DEPARTMENT
Export department plays a vital role in any organization. Metco export department is headed by
the export manager. The export manager supervises all the marketing & export activities. Export
manager is also responsible for the exploration of local and foreign markets. He is also making
efforts for the development and the progress of the company.
OBJECTIVES
1) To increase the Export of the Grey Fabric and yarn.2) To maximize the company profit by increasing exports.3) Exploration of the new markets.4) Market research making the better information system5) Adopting the new technological a developmental changes in the field of textile.6) To build the image a credibility of the organization.7) To earn foreign exchange for the progress of the economy of the country.FUNCTIONS
Following are the main functions of the export department. Export department is responsible for the production planning and the production follow up
with the mill.
Customer correspondence as well Export department also follow-up the local sale and purchase of the yarn and the Grey fabric. The important function of the export department is to make shipment schedule and the
planning.
Visiting to the existing and new customer. Providing timely information about the production of the products to the customers which is
also providing a service to its customers and promoting the company image.
Improving the quality of the products with a collaboration with the buyer and the productiondepartment.
Bank documents preparation and the follow-up. Preparing the custom documents Dealing with the agents and providing timely information to the parties.
7/31/2019 Internship Report Metco
17/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 17
B/L follow-up with the shipping lines. Export system updation is also the responsibility of department. Preparing the quality analysis report and sending them to higher authorities. Maintaining the complete sale and purchase records Export department is helping in improving the quality and betterment of the products and the
company.
EXPORT DOCUMENTATION
Export procedure is a very lengthy process. It involves a number of documents required by the
importer from the exporter. Metco export department carefully handle all the steps involve in it.
Because a little bit of mistake can cause a great loss to the exporter and the importer.
i.
Indentii. Sales contractiii. Letter of Creditiv. Custom documentsv. Packing listvi. Bill of ladingvii. Bill of exchangeviii. Certificate of originix. Inspection certificatex. Form Exi. Form Mxii. Shipping bill
INDENT
Indent is the first export document which is send by the agents to export department. After the
careful analysis of all the terms and conditions such as the quality description the selvedge,
shipment date, piece length, price per unit, the packing and payments terms. It also contains the
buyer name and the reference number of buyer or agent.
7/31/2019 Internship Report Metco
18/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 18
SALES CONTRACT
The export department after the careful analysis of indent issues the sales contract. As they have
the products and in the sales contract they confirm the terms and conditions of the indent, such as
the quality, packing, payment terms, commission, shipment date and the price of the product.Issuing sales contract is the confirming the sale of the products to the buyer on the specified
price. If there is changing made by the buyer or agent, so the later revised sales contract is issued
by the export department. In which they can revised any thing, the shipment schedule, the price
& the product specification. Export department handle carefully the steps of that procedure. Also
the contract copies are sent to the agent, the buyer, the accounts and the audit department of the
Metco for their record purpose.
LETTER OF CREDIT
Letter of credit is very important documents in the whole export procedure. Because without this
the process could not be complete.
L/C is a written instruction issued by buyers bank, authorizing the exports to draw in accordance
with the terms and stimulate legal forms that bill will be honored.
In the L/C all the term and the conditions are given by the buyer. What documents he needs. In
the L/c there are important things mentioned there.
1. The Buyer name is there in the L/C2. The bank of the importer is also mentioned.3. The importer name and address is also given.4. L/C number is mentioned on the top or the L/C5. Issuing date of the L/c, the expiry date of the L/C, the amount of L/C, the quantity of the
products.
6. The complete description of the products and the rate.7. The terms, either CNF or CFR,8. The shipment date is also mentioned.9. The port is given there in L/C.
7/31/2019 Internship Report Metco
19/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 19
10.The shipping line is given, so the exporter only sent the goods on that specific shipping line.11.L/C terms are given, either it is 120 days, 90 days or sight from B/L date12.On the L/C the rate per unit and the shipment schedule is give on what date the products
would be shipped in what quantity.
13.Trans shipment or the partial shipment allowed or not is also there in the L/C14.All the documents such as the invoices, the packing list, the certificate of origin and other
inspection certificate are also mentioned as required by the importer.
TYPES OF L/C
Irrevocable or revocable Documentary or clean Un-confirmed or confirmed SightThe exporter has to fulfill the terms mentioned in the L/C. Both the importer the exporter are
bound to fulfill their obligation mentioned his L/C
TRANSPORT DOCUMENTS
The transport documents are very important because it provide the evidence that goods have
been transported and it enables the importer to receive the goods from the custom authorities. As
the order placed by the importer is ready on the due date, the export department issues the
dispatch order to the mill. That the following quality should be dispatched on the containers
specified on this L/C. The goods are loaded on the specified containers and they are sent to the
Karachi port on the specified shipping line.
Metco mostly does its shipment through the shipping companies. The shipping lines charge theirfreight and other charges are paid the agents as well as for clearance of the goods from the port.
The agents handover the documents which involve packing list and invoices to the shipping
lines.
7/31/2019 Internship Report Metco
20/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 20
As the trailer number, the container number E form number, quality and the quantity is
completely mentioned on this invoices.
Mode Document Carrier
By sea Bill of lading Shipping lines
By Rail Receipt Railway service
By Road Road way bill Transporters
By Air Air way bill Air lines
NEGOTIABLE DOCUMENTS
In the negotiable documents the title of the good is transferred form one person to another when
the existing holder produces the documents.
NON NEGOTIABLE
In the non-negotiable the title of the goods is non-transferable. In the exporting of good the
number of the parties one involved.
1) The firm or the company engaged in business of transporting products, such as the trackcompany, shipping company a airline.
2) The exporter, who is exporting the goods to the buyer.3) The importer who is importing the goods from the seller.
7/31/2019 Internship Report Metco
21/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 21
BILL OF LADING
Bill of lading is one of the most important documents in the whole export documents. Because
without this the importer cannot receive their goods from the destination port.
Metco first of all draft the bill of lading and that is sent to the shipping line. Bill of lading also
contains the specifications related to the importer and the exporter. The name of the exporter,
place, the importer, the bank, the quantity is mentioned, the quality with all the specifications
required by that, the total value of the goods which are exported. The date of the bill of lading is
mentioned. The shipping line and vessel name is given on B/L.
B/L is a comprehensive documents that is issued by the shipping line. The date of shipment is
also mentioned on that. Without this the importer cant clear the goods from the destination.
Metco export department also very quick in follow up of the B/L because they have to transfer
the information to the parties.
CERTIFICATE OF ORIGIN
Certificate of origin shows that the good which are being exported are originate from a country
form which importer is allowed. These are required by the authorities in the importing countries.
In order to satisfy and support a claim for the import duty.
This certificate of origin may also be made by the consultants of the importing country in the
form of consoler invoice or legalize the exporters commercial invoice. When explorer called for
L/C, of is with the other documents by reference to the invoice number, L/C number and by
quoting shipping marks and numbers in order to identify the goods.
PACKING LIST
Packing list is a document which involves all the complete list of the goods packed in the
particular shipment. It is very important. Documents. It provides a convenience to the shipping
and the clearance authorities.
7/31/2019 Internship Report Metco
22/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 22
FEATURES OF PACKING LIST
1) It usually shows the marks a number mentioned on the packages.2) It shows the weight also.3) Each package is marked by a number.4) It shows the contents of each package, what is nature, quality and quantity of the package.5) It provides a linkage with the other documents to reference to the invoice number, date, letter
of credit number, date and vessel name.
FORM-E
Form e is a document issued by the exporter bank. through form-e the sbp controls the overall
exports of the country. the form-e declares that the export information given on the form-e are
correct and will submit the duplicate and triplicate copy of this form to authorized bank.
Form-E contains the following important informations.
1) Description of the goods, the quality of the goods exported.2) The quantity of the goods.3) The Terms of the L/C.4) Destination of the goods.5) The consignee bank. The importer bank name through countries the payment would be
released.
6) The Invoice value of the goods in the exported.7) The port form where the good are shipped.8) The place from where good are cleared.9) Date of the form E is also on this form.
CERTIFICATE OF INSPECTION
Certificate of inspection is also a important document, it is in those consignments where the
importer wants to assure himself, about the shipment of the correct goods, in terms of the quality,
description quantity and size. The documents should specifically identify to the goods by having
7/31/2019 Internship Report Metco
23/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 23
a reference to the marks and numbers of the package and linkage to the other documents by
reference to invoice number, the letter of credit number, the vessel name and the shipping line.
BILL OF EXCHANGE
It is unconditional order in writing, addressed by a person to another, signed by person giving
it, requiring the person to when it is addressed to pay on demand or at a fixed determinable
future date. When the L/C is opened the B/E must be strictly drawn according to the terms and
conditions of the creditor may be drown on the request of the applicant or on the bank request
through which the credit is opened. B/E is also a important document of export.
SHIPPING BILL
The customer clearing agents issue the shipping bill. It contains the complete information about
the export bank the importer name, the exporter name, the weight of the goods, (Net and gross
weight), number of packages, amount in US$, quality of the goods, the container number, the
exchange rate and rupee amount.
FORM-M
It is also an important. It is used to pay the commission to the agents. Metco receive this from
the agents. On this the amount of the commission is mentioned against invoices.
7/31/2019 Internship Report Metco
24/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 24
SWOT ANALYSIS
STRENGTHS
Good know how about the textile business. Which is improving the progress ofthe company.
Cheap labour is available to Metco which is reducing the per unit cost. The products are at compatible prices. Cotton is also available at cheaper rates. It has its own spinning unit and the weaving unit also. Which is reducing the cost
of production.
Metco has well qualified staff. Metco has a good financial resources. So they can invest in other textile related
products.
Metco has its better market information system. Metco has good relations with local and foreign buyers.
WEAKNESS
Delivery time is more due to this the shipment are delayed. Lack of HR resources development. Lack of promotional activities. Metco should do the more effort in promotion. There is more decentralization in Metco. Less competitive in the fine count. Our cotton fiber is Short .Which is decreasing our productivity in fiber. Non-professional attitude. Which is decreasing efficiency. Per unit cost is not decreasing .So we are less competitive in count Fiber. Metco is not exporting value added products.
7/31/2019 Internship Report Metco
25/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 25
OPPORTUNITIES
Metco has opportunity to export to the U.S.A and the Europe markets. There is more scope of exporting to these markets. Govt. is also providing lot of incentives to the exporters. The decreasing interest rates on the loans. Metco has opportunity to explore new international and growth oriented markets
for the exports of Fabric.
Metco can play the role of agent. So they can save the commission which is paidto the agents.
Metco can better the marketing techniques.
The company should import the latest technology to decrease the per unit cost ofthe production.
The company should go in dying process also. The company should make efforts to improve the technical skills of the labour
and employees which will improve the overall efficiency and productivity of the
organization.
THREATS
Quotas are lifting Metco will face the major threat. Metco has a threat from the domestic and the international competitors. China, Thailand and Indonesia are the emerging giants in textile. The Metco will face tough competition in domestic and international markets. Political instability is also a major threat. Govt. strict policies about the textile sector. The unreliable agriculture sector.
7/31/2019 Internship Report Metco
26/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Page | 26
Social Welfare
From the early days of Metco Groups success, the group focused on paying back to the
community and the poor people of Pakistan. The Metco Group contributes generously in the
areas of health care, housing and education. Partners of the Metco Group are on the committees
of several welfare organizations, and have given away Rs tens of millions over the years to help
alleviate the hardships of the needy. Organizations that the group currently donates to.
Al Murtaza School
Askari Computer Institute
Askari Welfare Trust
Gulam e Abbas School
Fatmia School
Haydri Hostel
Hussani Blood Bank
Zaynabya Trust
Partners of the Metco Group are currently building a university in Karachi, when completed,
estimated early 2006, will offer high quality education at subsidized rates to around 400 students.
The land purchased for the university is 2,200 sq yards and construction of both a men and a
women wing is underway.
7/31/2019 Internship Report Metco
27/27
INTERNSHIP REPORT METCO TEXTILE (PVT) LTD
Future plans
The Metco Group in 2005 joined forces with another prestigious and large group in Pakistan andformed a company called Green Power. Green Power is owned equally by the Metco Group and
the Tapal Group. The company is planning to setup a 50 Megawatt wind farm in Gharo, 75 km
from Karachi. The project aims to produce badly needed electricity for the government of
Pakistan, without the dependency of imported fuel and pollution. Green Power has received an
LOI (letter of interest) from the government, and wind data studies are being carried out. If
successful the project will be first of its kind in Pakistan. The estimated investment in the project
will be in the range of Rs 4 billion.
Recommended