Colony Textile Mill Internship Report

8/3/2019 Colony Textile Mill Internship Report

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COMSATSINSTITUTE OF INFORMATION & TECHNOLOGY

Submitted To:

Sir Waqar

Ahmed

Submitted By:

Hassan Bakhtiar Roy

FA08-MBA-039/LHR

ACKNOWLEDGEMENT

Up and above anything else, all praise to Almighty Allahalone, the Omnipresent and the most Merciful andcompassionate. The words are bound, knowledge is limitedand time is short to express His dignity. It is one of infinite

blessings of Allah that he bestowed me with the potentialand ability to contribution towards the deep oceans of knowledge already existing.

I pay hum-age to greatest personality of theuniverse; HOLY PROPHET HAZARAT

MUHAMMAD (PBUH) who is forever source and springof guidance in every sphere of life.

At the very outset, I would like to express my hearties andsincerest sense of gratitude to all my worthy teachers of



CIIT Lahore for their inspiring guidance and constructivecriticism.

I am highly thankful for the cooperation of Mr. Bilal Niazi,

Mr. Wasim Omer, Mr. Rizwan Malik, Mr. Tahir

Mehmood, Mr. Nouman Chatha and Mr. Kashif Niaziof Colony Industries (Pvt.) Ltd. I might not be able tocomplete my internship without their cooperation and kind

behavior. I am also gratified to all my sincere fellows who Ihad ever remembered for their continued encouragementmoral support and invaluable succor as well as substantialcooperation during my critical moments.

Hassan Bakhtiar Roy

Contents

Executive Summary 5

Textile Industry in Pakistan 6

Introduction & History 8

Vision Statement 10

Mission Statement 10

Group Management Profile 10

Production Accounting & Management System 12

Inspection System 13

Organizational Structure 15

SWOT Analysis 18

Detail of SWOT Analysis 20

PEST Analysis 25



Marketing Strategy 26

Competitive Strategy 30

Purchase Accounting System 31

Process of Yarn Production 34

Work done during Internship 36

Learning as an Internee 41

Recommendations 43

Annexure 44

Glossary 50

Bibliography 52

Executive Summary

This report is based on the activities performed duringthe internship at COLONY Textile MillsLimited. Internship duration was 6 weeks and it provided

practical knowledge of working in professionalenvironment. This learning experience is described in detailn the various sections of this report.

In the first section, there is some detail about the company.The history and present status of the company is explained.



The organization structure and the details of itsmanagement along with its location are also discussed. Ihave also discussed the yarn manufacturing procedure andthe important departments of the company. I havediscussed some business operations and some strategies aswell.

The second section provides information about theactivities that I performed during the internship. I workedas an internee mainly in Accounts and Marketingdepartment. However, I also spent some time in PurchaseDepartment to gather some information about their working.

The third and last section includes the recommendations.

Textile Industry in Pakistan The subcontinent is the inheritor of one of the richest andoldest textile traditions in the world. Excavations atMohenjo Daro and Harappa 2500-1500 BC revealed thatthe inhabitants of the Indus Valley cultivated cotton. Sir John Marshall, the archaeologist has stated that a fewminute scraps of cotton were found adhering to the side of

a silver vase. Clay and faience spindles whorls indicate thatcotton and woolen fibers were spun. A well-equippeddyers’ workshop was excavated at Mohenjo Daro and thefragment of cloth indicates that woven cotton cloth wasdyed with madder root.

Independence from the British in 1947 and the division of the Indian subcontinent into Pakistan and India started a



new era for textiles production. Pakistan consisted of twoentities, east and West Pakistan. The West was the cotton

producing area and the East was responsible for jute production. At the time of partition, Pakistan had noindustrial base and inherited only one textile mill, theLyallpur Cotton Mill in Lyallpur [now called Faisalabad].This mill produced yarn and gray cloth and no printedfabrics.

Under the Open General Licensing [OGL] scheme, the business community imported plants and machinery withcash dollars. In 1950, Adamjee Mills was set up in Karachi,Kohinoor in Faisalabad, Colony Textile Mills in Multan,

Nishat and Crescent Textile in Faisalabad. These werefollowed by Gul Ahmed Textile Mills, Al-Karam, Valika,Star and Rashid textile mills.

Within a decade the new country of Pakistan was self-sufficient in cotton and began exporting gray cloth and later cotton yarn. Pakistan started exporting printed fabrics in thelate 1970’s to Africa and by mid 80’s was sending printedmaterial to Europe. Pakistan’s location was ideal, as it layhalfway between the western world and the Far East.Pakistan has a 28 percent share in world export of cottonyarn and a 6 percent share in world export of cotton cloth.

It was in the 60s that the power loom took over and by the70s gray cloth was being exported at throwaway prices.There are about 200,000 power looms operating in Pakistansome of which are backyard operations. Handloom, whichformed the backbone of textile goods in the last century, isnow almost non-existent, its sales confined to a fastdiminishing rural market and a very small niche market.

Although Pakistan is the world’s fourth largest cottongrowing nation in the world, after the United States, China,and India, its total turnover for export is only $ 5 billion.Textile goods form 60 % of the total exports of the country.The commodities exported are yarn, cloth, tents, andcanvas, bags, towels, bed linen, garments, synthetic textilesand other made ups.





Colony Textile soon became one of the largest verticallyintegrated textile facilities in the country. The group further diversified in to Power Generation and Distributionnetwork, Banking, Insurance, and Cement sectors. Thesuccess of the group continued until the government regimeshift brought about a shift in policy from private sector

pushed industrialization to a strong wave of nationalization.The Ginning, Flour Milling, Power, Banking, Insuranceand Cement along with various other sectors werecompletely taken over by the government.

Having major assets nationalized, the Group was facedwith severe financial difficulties for almost one and a half decades.

Presently, the Colony Group consists of several TextileSpinning facilities with an installed capacity in excess of 220,000 spindles out of which more than 200,000 spindlesare 4 years old or less.

Colony group is managing the following companies:

Company Name Line of Business Status

Colony Textile Mills Limited Textile (Spinning) Public Limited Company

Colony Industries (Pvt.) Limited Textile (Spinning & Weaving) Private Limited Company

Colony Textile Mills Limited (CTML)

Colony Textile Mills Limited, one of the group companiesof the Colony Group, is a Textile Manufacturing unitestablished as on 24th August, 1946 and engaged in manufacturing of yarns of various

Ne Counts. The company has authorized capital of Rs. 411,000,000 as on September 30th 2008.

During year 2000 to 2001 the annual production capacity of the company was 34.813 million Kg’s converted into 20 NeCount based on 111,136 spindles. Currently the number of spindles installed has been increased to over 175,000spindles.



A summary of the company’s production record for spinning section for the past three years is given in Annex

1.5

Year ended 30th September 2006 2007 2008

No. of spindles installed 59,200 79,864 177,448

Average no. of spindles worked 47,085 64,195 155,330

Capacity at 20 count(Kg’s.) 17,778,000 22,841,002 48,669,115

No. of shifts worked 1,092 1,040 1,095

Actual production converted at 20 count 14,652,680 18,703,378 47,394,446

Capacity Utilization 82.00% 82.00% 97.38%

The company sales are comprised of local sales which is almost 100% against advance cash payment. The total

turnover of the company during last year was Rs. 3.226 Billion which is expected to cross 5.00 Billion mark during

the current year.

Vision Statement

Attain highest standards of quality in its all business activities.

Sustained growth in real terms.

Have professionally trained high quality motivated workforce, working as a team in all environments.

Attain past glorious position and be recognized locally as well as internationally as a dynamic, quality conscious

and progressive company and industry leader.

Mission Statement

To manufacture quality products for customer satisfaction through

Honoring the commitment.

Continuous endeavor for improvement through adoption of most modern technology in production.



Strict adherence to quality control.

Developing a sense of high reliability through fair dealing.

Becoming a part of country’s development and economic prosperity.

Group Management Profile

A brief profile of the main directors of the company which hold majority of the shareholding is given below:

MR. MUGHIS A. SHEIKH

Mr. Mughis A. Sheikh is the Chairman of Colony Textile Mills Limited.

MR. FAREED M. SHEIKH

Mr. Fareed M. Sheikh is the Chief Executive of Colony Textile Mills Limited.

MR. NAVEED M. SHEIKH

Mr. Naveed M. Sheikh is CEO and director of Colony Weaving Mills (Pvt.) Limited.

Production Accounting & Management System

CIL production accounting and management system not only ensures consistency in the operations but also helps to

manage orders on a micro level. In-house developed software provides great tools to CIL 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.

Production Capacity & Capability

With the installed capacity of 120 looms, the plant can produce more than 1,500,000 Linear 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 Local Area Network along with being Web-enabled. CIL

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 quality related

issues on the other. For this organization 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 CIL production team to

strive for either improving their performance or marinating the quality which is for the satisfaction of the clients.

Inspection System



Colony Industries (Pvt.) Limited is the pioneer in the entire Indo-Pak region in deploying the Uster FabriScan in its

facility. The FabriScan replaces the traditional manual inspection by a far more consistent and objective data

collection. This system is capable of inspecting Fabric production of a 240 loom facility. Deploying this machine in

this facility was a well thought-out decision as this system is not subject to fatigue, downtimes, or outside

influences. It provides consistent checking the entire quantity 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 “UV” 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 requirements 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-synchronization with their production plan. In order to

cater for our direct Dye-House customers, we have the “CUT OPTIMIZATION” option available. As soon as the

inspection is complete, the system performs the optimization process and suggests the best possible way to cut the

fabric to get the highest number of pieces of the Optimal Quality.

Power Generation & Heat Recovery System

Colony Weaving Mills is fully-contained and self-sufficient facility with its in-house continuous and reliable power

generation facility with 100% backup power arrangement. The Power Generation department with its Heat Recover

System is designed to generate enough hot water to fire the chilling system for the entire facility, along with

producing more than 50% of the steam required for the sizing operation.

Memberships

Lahore Chamber of Commerce Industries

APTMA (All PAKISTAN TEXTILE MILLS ASSOCIATION).

Products

Yarn

The company is producing 100% cotton yarn, 100% Polyester yarn, 100% Viscose yarn and mixed yarn of various

counts ranging from coarser Number English 20 count to finer Number English 80 count.

Fabric

CIL is producing Grey Fabric with following fiber types, for abbreviation’s detail see Glossary:

Organizational Structure

The concept of an organization chart shows what positions exist, how they are grouped and who reports to whom.



The organizational structure should be designed to provide both vertical and horizontal information flow as

necessary to accomplish the organizational overall goals. If the structure doesn’t fit the information requirements of

the organization, people will have either too little information or will spent time on processing information that is

not vital to their tasks, thus reducing effectiveness.

Colony Group’s structure is a hybrid of divisional and functional structures; divisions are based on two products

Yarn (Spinning Facility) and Grey Fabric (Weaving Facility).

Top positions are as follows:

See Annexure 1.1

Group Profile

Board of Directors

Mr. Mughis A. Sheikh (Chairman)

Mr. Fareed M. Sheikh (Chief Executive Officer)

Mr. Zarrar Ibn-e-Zahoor

Mr. M. Akram Qureshi

Mr. Najeeb Ahmed

Mr. Muhammad Shakeel

Mr. Tahir Mahmood

Registered Office

M. Ismail Aiwan-e-Science

Shahrah-i-Jalaluddin Roomi,

Ferozepur Road Lahore – 54600

Phone: (042) 5758970 – 2



Fax: (042) 5763247

Colony Industries (Pvt.) Limited

CIL consists of two divisions Weaving & Spinning; following is the top positions in CIL.

See Annexure 1.2

Accounts Department

Accounts Department keeps track of all transactions. Each and every sales confirmation note and purchase

confirmation notes come to Accounts Department for making timely payments and recovery of money from buyers.

Internal auditing is also another responsibility of Accounts Department for smooth and clear handling of operations.

See Annex 1.3

SWOT Analysis

Strengths:

ISO 9001-2000:

Strong Security System

High quality product

Latest mechanized machinery.

Tremendous market

positioning

Highly qualified and skilled

management

Highly Motivated Workforce

Weaknesses:

High cost of production

Centralized decision making

Less promotional activities



Adequate financial resources

Competitive advantage

Own power generation plant

Opportunity:

Organization Can expand

product lines

Organization Can capture new

market segments around the world

Organization Can reduce the

cost by proper utilization of

resources

Organization Can hire more

well-educated and experienced

person

Threats:

New Entry of competitors

Buyer needs demands changes

Political instability

Change of government

policies

Globally Economic instability



Detail of SWOT Analysis

Strengths:

ISO 9001-2000:

CTML is certified under ISO 9001-2000 and so it meets the requirement of international standard and

has a value in the mind of concern people.

Strong Security System

CTML has a greater security system. There are different hidden security cameras which capture all the

moments.

High quality product

CTML is using advance technology like they have modern machinery by which the quality of product

produced is very high.

Latest mechanized machinery.

They are using modern looms which they have purchased from Japan, Germany and France. And by

using that latest machinery the productivity of the employees are very high.

Tremendous market positioning

CTML is one of the Pioneer Textile Group in the Pakistan so it has got the position in the mind of its

customer. And being an old textile company people are loyal with it. CTML has a better position in the

mind of its customers.

Highly qualified and skilled management

The management of CTML is skilled they have hired the foreign graduate people in their management

and also experienced people from all over the country.

Highly Motivated Workforce

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

Convenience like personal car along with fuel provided by the company too, which is a big deal for

motivating the employees.



Adequate financial resources

The owners of CTML are one of the r ichest persons of the Pakistan and they have more plant and

investment in other industries like Sugar Mills, and Share Market. They have adequate financial

resources to meet their requirements.

Competitive advantage

Because it is an old textile originating from 1950’s and it has still kept its position in the textile market

on all competitors nationwide, which is its competitive advantage.

Own Power Generation Plant

They have own power generation plant and CTML is the pioneer in the private organization who start

the power generation.

Weaknesses:

High cost of production

The production cost is high because of un-proper utilization of resources.

Centralized decision making

The decisions are made by the upper management which is weakness of the CTML because they havenot any proper idea about the prevailing situation and their decision can be un-fruitful for the company.

Less promotional activities

The advertising and promotional cost of the CTML is very low it can take advantage for more turn

outs.

Opportunity:

Organization can expand Product Lines

Currently the CTML 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 CTML. They also have

better market repute.



Organization can reduce the cost by proper utilization of resources

If the cost of different matters which are not been utilized properly, is controlled by the CTML

management they can produce more at less costs. It has to develop a further systematic process for

controlling and managing resources.

Organization can hire more well-educated and experienced person

They can take advantages by hiring more skilled people and they should hire young, fresh and

energetic staff for their betterment. Because being human, you always have the room for betterment in

any aspect.

Threats:

Buyer needs demands changes

Because of the research & development the design and the product of CTML is just satisfactory as

compared to competitors in the global environment and they are not fulfilling the demand of customers.

Political instability

Political instability effects the CTML because of the quota system, Government can restrict the

Company to export.

Changed of government policies

Government policies are changing day by day so it is always a threat for not only CTML but for any

company to survive in such a environment.

Globally Economic instability

Because of the economic instability the CTML and the “Dumping system” which is rising on daily

basis in the world can create many problems for the company and any uncertainty in the world like

9/11 may also affect its overall exports.

PEST Analysis

Political Instability

The political situation of Pakistan is not satisfactory. Due to the rapid change in the Government every

government sets its own new trade policies.



Govt. should apply sustainable policies for the beneficial of the exporters as well as the investors.

Economic situation:

The economic condition of Pakistan can also affect the foreign investors increasing inflation rate make

the cost of production high and thus reduce the profit margin of the investor.

Social situation:

The change in the lifestyle of the people affects the growing demand of the CTML products. The

change in the lifestyle and needs in different demographics also affect the demand of the customers.

Technological factor:

Technological advancement in all the sectors of the country has changed the entire socio-economic

environment. Especially in the textile sector there is a lot of technological development.

CTML’s excellent computerized machines and devices have made extension in its present setup of well

advanced technology imported from Japan, Germany and France.

MARKETING STRATEGY

CTML is a group starting from 1950’s which means that it is an old and pioneers of Textile industry in

Pakistan. On its purchase side as I have worked for a whole week in Yarn Procurement department of

the Group, which is a small branch of Marketing department. I 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 ICI for polyester and then to companies like Nishat, Sitara Textiles and many more

companies and groups like that. Their fiber is very famous not only nationally but internationally as

well.

Secondly on Europe 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.

Countries like China, Indonesia, India and Bangladesh played an active role in the fabric market.

Improvement in quality and production capability was the main area of concentration.





seriously, which are so dear to the American consumers. A lot of big brand US companies have visited

us and are discussing the possibilities of a joint venture.

The opportunities are limitless, we have to review and analyze them very thoroughly to associate with

the right people in the long run. In shorter term we are building a small amount of quota, which will

give us recognition as a bedding supplier.

CTML is very strong in non-quota categories like curtain and table linen. These categories are best

served with new product development (NPD). CTML will coordinate the effort for NPD by all markets

to optimize results. CTML has achieved the highest sales in 1999-2002 for North America market.

On top CTML has developed more direct and closer relationship with its end customers. Oceanic has

been our most lucrative and mature marker. In business terms it is our “cash cow” market.

Primarily due to being a non-quota market it had no real limitations in this market. Despite 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 East market is composed of South Africa and the new emerging markets like the UAE, Egypt,

Saudi Arabia, and Jordan etc. CTML 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. We are also targeting printed apparel business for the first time. The

latest addition is the most ambitious Apparel Dyeing plant setup in Raiwind Mill, which has started its

production.

The effectiveness and productivity of this plant will be further enhanced, as CTML moves towards

becoming a more vertically integrated organization.

CTML has increasing its profitability by working efficiently, procuring better raw material and most

importantly kept a very close association with its customers.

It visits its business partners frequently 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.

CTML has provided its staff with better working environment and facilities, which enhances its

efficiency and output.



At CTML, it is prospering due to i ts professional commitment towards excellence and giving the best

results at all times and against all odds. Its 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 Pakistan.

Competitive Strategy

As for as COLONY Group is concerned its own name is its competitive advantage. Being an old group

it has its own name in the field of Textile as well as sugar. As I have told in the above segment that it

has business of Methane gas in Europe it is its competitive advantage. As dealing in one different side

gives you edge over competitors in other field.

Furthermore, 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.

COLONY group buys raw material from all the groups like Nishat, Sitara Textiles, Kohinoor Textiles

and many more companies like that I cannot name all of them as it is a huge number. Which

automatically makes links better and which tells its mostly products are exported. And for sure they are

of finest quality.

It’s one competitor is the Rupali group.

PURCHASE ACCOUNTING SYSTEM

For abbreviations see Glossary:

Purchase Procedure for Mill

When a Floor Shop in-charge (Foreman on the maintenanceand Head Jobber on the Production side) needs to purchaseone or more items to facilitate his sphere of work, he willfill out a PDN. A copy of PDN used in our companyappears in Appendix 999. The PDN has three leafs. Firstcopy is for the Purchase Department, second for the Storeat Mill, and third for the Department originating the



demand. A good quality Carbon Paper should be used sothat even the last copy is legible.

At the initial stage there are six columns that are filled bythe authorized staff of the concerned Department/Section.

Those six columns being Department, Sr. #, Item Code,Description, UOM, and Quantity Demanded.

The company is divided in to five ConsumptionDepartments. This division is done in order to simplifyidentification of consumption patterns, allocation andanalysis of wages & salaries, and convenience inBudgeting. The Departments namely are:

Sr. # Departments Code

1) Head Office 01-00

2) Administration 02-00

3) Spinning 03-00

4) Services 04-00

5) Residential Colony 05-00

The Department/Section code format adopted by our company is 99-99.

99-99

Department Section

Main Departments always have “00” in place of sectiondesignator. For example, 02-02 signifies that

the Department is Administration and the Section is TimeOffice. However, when we want to refer to theAdministration Department the code used will be “02-00”,meaning that the code relates to a Main Department.

A Store Item Code List (SICL) sorted on Item Code as wellas Description also containing the Unit of Measure (UOM)



of each item in front of the Description is supplied to theStore In-charge, Manager (P&A), Electric Engineer, MillsManager at the Mill, and Purchase Officer at the HOL.

New Items added to Store Inventory (SI) from time to timewill be added manually to the list by those who have beenissued the SICL. At the beginning of every Quarter a newSICL be issued to all concerned.

PDN No.: This is a sequentially controlled five digitdistinct number allocated to each PDN document.

Starting with 00001 to the first PDN of the financial year up to 99999 during that financial year.PDN numbers iscontrolled by the Store In charge in the PDN Number Control Register. If HOL issues a PDN, the Purchase

Officer will ask the Store In charge to allocate his demanda PDN Number. Next number in sequence will be allocatedwhich will be written on the PDN by the Purchase Officer.The Store In charge will make a note of this that the PDNwas made by the HOL staff.

Department: The Section that makes the PDN fills-in itscomplete code. If Ring Maintenance is filling the form, itwill enter the code 03-10 signifying that Sub-Section “RingMaintenance” of Spinning Department is demanding whatis endorsed in the PDN. The Sub-Section’s description will

be written in front of the blank space provided for description. The Main Department’s name will not bementioned in this space.

Sr. No.: The first column to be filled in a PDN will beSerial Number that appears in an abbreviated form (Sr.

No.). Under this head, a whole-number in a sequentialorder will be filled-in for keeping a count of itemdemanded in a particular PDN. It will always start from 1and go up to a maximum of 9, as there is a provision of only 9 rows in a PDN for entry of items.

Item Code: For various reasons including statisticalanalysis and MIS the Item Code has been broken into threenumeric parts, each part separated by a dash “-”.



The Item Code adopted in our organization is in the format99-99-999. Store Code combines with the Item Code toform the ITEM CODE.

99-99-999

Store Section Item Number

Store Sub-Section

PROCESS OF YARN

PRODUCTON

See figure in Annexure 1.3

Production manager services the daily production schedulesand try to work according to the demand to schedule. Thereare many steps involved in production of the yarn.

BLOW ROOM

The first step is that the raw cotton is sent to Blow room for the quality of the cotton. Then it is sent to the Lab for quality check. Here basic quality and other contents arechecked in proper form. If one kg cotton is put into thisroom only 600 grams cotton goes into further production

process and rest goes in wastes. Here following are wastesexcluded,

B/R Gutter

Dropping

CARDING

In this step the cotton is carded. The production manager checks the cotton and it comes in the drums typecontainers. These drums rotate and cotton comes out in



specific form called as “pones”. Here about 5% cotton goesin the shape of waste. Waste extracts from this process arecalled by;

Card fly

COMBING

In this step the cotton goes for combing. Combing is a process to comb and wax the cotton for softness purpose.Following wastes are excluded from cotton in this process;

Short Fiber

Comber Noel

SIMPLEX

After the attaining of Cotton from Card and Comb processes, which is also weak this is further passed back to blow room process called Roving and then cotton is sent toRing process.

RING

In this step small pones are developed for further processand wastes are made out named;

Phnemaphil

AUTOCONING

In this step the manager in specific intervals checks thequality of carded pones from which yarn is produced inshape of cones by passing through machines for this

purpose. Here also some wastes are extract called;

Oily hard waste

Hard waste

PACKING



Cones manufactured in proceeding step are now kept inmoisturize room for absorbing required moisture. Cones are

packed into bags or cartoon according to customer requirements.

PURCHASE DEPARTMENT

The purchase department makes all purchases. Everydemand from different departments for different items isforwarded to store and from here it is forwarded to

purchase department if needed to purchase. It has a mainstore in factory.

WORK DONE DURING INTERNSHIP

During my internship, I worked in the followingdepartments.

• Accounts

• Marketing

Account department

In account department, I managed to understand the flow of transaction, preparation of vouchers and ledger posting.

Preparation of vouchers

In account department under the supervision of concernedofficers, I came to know different type of vouchers being

prepared and their process of preparation. Vouchers arewritten evidence of any business transaction. The differenttype of vouchers being prepared by the account departmentof CTML is as under,

• Cash payment vouchers



• Cash receipts vouchers

• Journal voucher or adjustment vouchers

Now I will discuss these vouchers one by one:

Cash Payment Vouchers

Being a public limited company cash payment vouchers areused for recording the expense of less than five thousand.These types of vouchers are prepared when cash paymentsare made against small expenses i.e. repair, entertainmentetc. in order to record the expenses following entry is

passed:

Account code name of expense (debit) Amount

Cash account (credit) Amount

Evidence of expense is attached with the cash paymentvouchers.

Cash Receipt Vouchers

These types of vouchers are prepared when the cashier on behalf of the CTML is receiving cash. However, thesetypes of vouchers are small in quantity because majority of transactions are done by bank. On receipt of cash, cashier

prepared the cash received slip. Account officer preparesvoucher on the basis of cash receipt prepared by thecashier. In order to book the transaction the following entryis passed in the books.

Account code cash account (debit) Amount

Income A/C or receivable A/C (credit) Amount



Account code Bank A/C (debit) Amount

Cheques clearing A/C (credit) Amount

ADJUSTMENT VOUCHER OR JOURNAL

VOUCHERS

These types of vouchers are generally prepared in thefollowing circumstances;

Purchase on credit

Writing off assets i.e. depreciation store consumption etc.

Rectification of mistakes or omissions

Now I discuss them one by one

Purchase on credit

Generally raw material, stores and spares are purchased oncredit. In order to account them for the journal voucher are

prepared by the concerned account officer

Account code Purchase A/C (debit) Amount

Account payable A/C (credit) Amount

Copy of the invoices is attached with vouchers;

Writing off Assets

These journal vouchers are prepared in order to change theassets to expense for the preparation of monthly accounts.

To account for depreciation of fixed assets:



Account code Depreciation A/C (debit) Amount

Accumulated depreciation A/C (credit) Amount

To account for the raw material consumption:

Account code raw material concerned A/C (debit)

amount

Raw material store A/C (credit) amount

To account for store consumption:

Account code store concerned A/C (debit) amount

Store and spares A/C (credit) amount

To account for store consumption:

Account code store concerned A/C (debit) amount

Store and spares A/C (cedit) amount

To account for accrued expenses:

Account code expense A/C (debit) amount

Account payable A/C (credit) amount

In additional to above referred kinds journal voucher is also passed to rectify the mistakes made in voucher preparationor posting.

Marketing department

The main purpose of this department is to locate buyersthrough agents. So marketing starts from locating the

buyers, making contract, opening of LC, shipment and inlast payment is received.



Learning as an

Internee

Duties

As I have told above that I had prepared vouchers of different types. Then I used to take vouchers of Mr. Tahir,Miss Shazia and Mr. Ramzan to audit and brought back audited vouchers from the Audit. Copied cheques whose

payments were to be made on that day. Then I brought afew times Invoices for sales tax from marketingdepartment. Maintained record of filing with Mr. Farooqui.Then in Yarn Procurement I made worksheets for the

parties who do not have tax exemption certificate and their tax has to be deducted. Next in purchase department, I hadonly worked for filing their GRN’s and maintaining themin a serial manner. I have attended calls for a person notseat or else.

Accomplishments

As an Internee I have done all the works diligently which Ihave mentioned above. Instead I had done other works aswell which a person on the job never performs, likesomeone asks me to take vouchers from Audit like I amhis/her Assistant I had done that and never said no. As Ihave seen those employees which went to Audit and the



other asked to bring my vouchers as well and the personsays no I have my own work you should better go yourself.That is the thing which I wanted to share in this regard.

New Knowledge Acquired

One thing regarding new knowledge is what I have sharedin Accomplishments. Next one important thing regardingknowledge acquired is that what you are studying is not

related to the job duties you are doing are in future youhave to do honestly. You have to understand that work from start, in case of an employee leaving a company and

joining other he also will have to understand the work innew company. I have got a lot of sense regarding workingin an organization where everyone is working out for cutting your roots. How to work in a conservativeenvironment! How to behave in any situation! How tonegotiate with any person on job!

Problems Encountered

Well I don’t have to face as many problems as I will haveto face when I will go on job. First few days were hard but

I cannot say there was any problem. Employees there werevery cooperative and they asked me to ask as many timesabout a thing till you are not cleared about that. Theyguided me on every issue and asked me as/like a big

brother to learn as much as you can. I am really thankful toall of them.



Impact of Experience on my Career

This experience definitely effects my career positively. As I

would not have been come to know about the atmosphereof any organization, this experience has told me a lot aboutenvironment of organization and behavior of different typeof people. All of this edge goes to my Institute’s goodunderstanding about students future.

RECOMMENDATIO

NS

Colony Textile Mills Limited:

The first and most recommendation is to eliminate oneman show prevailing in the company

There must be a proper system for training of employees

and supervisors.

Importance should be given to employees’ turnover.

Different training courses should be arranged for the uplifting and improving the quality of work for employees.

There is also a problem of work overload for theemployees and it should be control properly so that theemployees are motivated. As I have seen employees

working till 8 PM. And I have come to know thatsometimes they work till 1 AM late night without anyincentive.

Employees should be paid extra for the work which theydo after working hours.



Annexure

COLONY CEO’s

Figure 1.1

COLONY Division wise

Figure 1.2



CEO

(CIL)

Technical Director

(Weaving)

Chief Technical Officer

(Spinning)

Marketing Manager

Production Manager

Accounts Manager

Sales Manager

Production Manager

Accounts Manager

Finance Manager

Commercial Director

MIS Manager

Manager Personnel & Administration

Accounts Department



Figure 1.3

Procedure of Yarn manufacturing

Figure 1.4



Annex 1.5

Year ended 30th September 2006 2007 2008

No. of spindles installed 59,200 79,864 177,448

Average no. of spindles worked 47,085 64,195 155,330

Capacity at 20 count(Kg’s.) 17,778,000 22,841,002 48,669,115

No. of shifts worked 1,092 1,040 1,095

Actual production converted at 20 count 14,652,680 18,703,378 47,394,446

Capacity Utilization 82.00% 82.00% 97.38%

Glossary

∏ COT 100% Cotton



∏ PP 100% Polyester

∏ PC Blend of Polyester & Cotton

∏ CVC Chief value cotton

∏ PV Polyester – Viscose

∏ Mixed Different materials in Warp & Weft

Purchase Accounting System

PDN Purchase Demand Note

GRN Goods Receipt Note

SIN Store Issue Note

SRN Store Return Note

UOM Unit Of Measure

HOD Head Of Department

HOL Head Office Lahore

G/L General Ledger

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Section Code Distinct Code Allocated to Section of a Department

Store Item Code List SICL

MIS Management Information Systems

Bibliography

Sources from where I have collected data:

Miss Parveen Abida, 2004, Production Accounting & Management System, Inspection System,

Introduction, Internship Report on Colony Textile Mills Ltd. Lahore

Miss Javed Iffat, 2006, SWOT Analysis, PEST Analysis, Internship Report on Masood Textile Mills Ltd.

Faisalabad. Faisalabad

Mr. Bhatti Jamil Muhammad, 2006, Marketing Strategies, Internship Report on Nishat Textile Mills

Ltd. Lahore

Documents

Colony Textile Mill Internship Report