Er Er Er Er

IMAGE GARMENTS (PVT) LTD

REPORT ON INTERNSHIP

PREPARED BY: MUHAMMAD BILAL

VU ID: MC080404230

SESSION: 2008 - 2010

SUBMISSION DATE: JULY 30, 2010

VIRTUAL UNIVERSITY OF PAKISTAN

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SCANNED COPY OF THE LETTER OF UNDERTAKING

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SCANNED COPY OF THE INTERNSHIP CERTIFICATE

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DEDICATION I happily dedicate this report to my Beloved Parents for all their love & attention which has

made it possible for me to make it up to this point and as well as the Internship Advisors, I

came across in, who bestowed me with the courage, the commitment and the awareness to

follow the best possible route, by his unmatchable style and by best possible training.

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ACKNOWLEDGEMENT Obliged to the “ALMIGHTY ALLAH”, The CREATOR of universe, the most gracious

and merciful from WHOM I never heard ‘NA’, whenever I knocked at HIS door and WHO

blessed me with this potential & ability to make some contribution to the already existing

ocean of knowledge.

All praises after “ALMIGHTY ALLAH” are due to HIS “HOLY PROPHET HAZARAT

MUHAMMAD (Peace be upon him), the most perfect exalted among WHO & us is forever

a torch of guidance and knowledge for humanity as a whole.

Afterward, I shall be very thankful for my beloved Parents, who grow me in a shape that I

make them proud and complete my internship report of Image garments (Pvt) Ltd.

ALLAH has provided me a life time opportunity to perform working at Image Garments

(Pvt) Ltd for tenure of 7 weeks. The aforesaid occupancy bestow me precious moments to

make learning and get experience of the practice life in successful approach.

Soon after, I am heartily grateful to the following persons who confer me possibility to

enhance my understanding and knowledge about the systems of Image garments, which

would ultimately useful for my future career and whose cooperation enables me to compile

this comprehensive report.

• Mr. Qamar Aftab (Chief Executive)

• Mr. Muhammad Ishaq Beryar (Chief Finance)

• Mr. Syed Sajjad Hussain (Manager Accounts)

• Mr. Muhammad Saleem (Asst. Manager Accounts AP)

• Mr. Asad Ranjha (Asst. Manager Accounts AR)

• Mr. Imran Rafiq (Asst. Manager Taxation)

• Mr. Ishtiaq-ur-Rehman (G.M Admin & Human Resource)

• Mr. Usman Qamar (Director Purchase)

• Mr. Shabbir Ahmad (Manager Purchase)

• Mr. Muhammad Azhar Babar (GM Operations)

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• Mr. Muhammad Safdar ( Sr. PPC Manager)

• Mr. Aman Ullah (Sr. Quality Manager)

• Mr. Rehan Ata (Sr. Manager IT)

• Mr. Sadiq Hussain (Manager MIS)

• Mr. Anayat Hussain (Manager Costing & Budgeting)

• Mr. Haroon Nisar (Manager Fabric)

• Mr. Saboor Mirza (Asst. Manager Export)

• Mr. Zahid Maqbool (Manager Inventory)

• Mr. Ahmad Raza (Manager Cutting)

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EXECUTIVE SUMMARY Image Garments has grown as Manufacture kam Knit outerwear exporter having a turnover

more than 100 millions annually. Today, Image Garments is considered being at par with

multinationals operating locally in terms of its quality knit outerwear products and

management skills.

I recently have done my internship in Image Garments, in which I got training in various

departments. The internship basically revolved around the product knowledge training and

the Financial activities held at Image Garments. The system, the style of working & the

commitment of the employees in Image Garments is really exemplary.

The difference between the success & failure is doing things right and doing things nearly

right. The Image Garments has always tried for success and creativity in its products. That

is why: it is known to be one of the leading organizations in Pakistan. Irrespective of all

these positive points of Image Garments I have noticed a few areas where the improvement

can really increase the efficiency of Image Garments

In this report I have given a very brief review of what I have seen and felt during my

internship. I have mentioned all of my active and passive learning in my Internship report.

Moreover, I have also performed the Financial Analysis of 3 preceding years and

commented on the entire picture of the organization.

Furthermore, I have discussed about my learning skills and capabilities in the whole tenure

that is all about the Textile Terminologies, process of the Productions and working

activities of Finance Department. I have made it possible to write each and every thing that

I have learnt over there. I have all my practical efforts in the form of this manuscript that’s

the asset for my future career.

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TABLES OF CONTENTS Page #

1. Brief Introduction of Image Garments’ Business Sector 1

2. Over View of Image Garments (Pvt) Ltd 2

i. Brief History 2

ii. Nature of the Organization 3

iii. Business Volume 5

iv. Product Line 5

v. Customers 10

vi. Competitors 10

3. Organization Structure 11

i. Organizational Hierarchy Chart 12

ii. Number of Employees 13

iii. Main Offices 13

iv. Introduction of all Departments 14

v. Comments on the Organizational Structure 25

4. Plan of your Internship Program 26

i. A brief introduction of the branch where I did internship 26

ii. Starting & Ending Dates of your Internship 26

iii. Names of the Departments in which you got training and 26

the duration of you training

5. Training Program 28

i. Detailed description of the operations/activities 28

performed by the departments I worked in.

ii. Detailed description of tasks assigned to me. 41

6. Structure of Finance Department 44

i. Departmental Hierarchy 44

ii. Number of Employees working in Finance Department 44

iii. Finance and Accounting Operations 45

7. Functions of Finance Department 46

i. Accounting System of the Organization 46

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ii. Finance System of the Organization 46

iii. Use of Electronic data in Decision making 48

iv. Source of Funds 49

v. Allocation of Funds 49

8. Critical Analysis 50

a. Financial Analysis 50

i. Ratio Analysis 50

a. Liquidity Ratio 50

b. Leverage Ratio 51

c. Profitability Ratio 52

d. Activity Ratio 54

e. Market Ratio 56

f. Cash Flow Ratio 57

ii. Horizontal Analysis 58

iii. Vertical Analysis 59

iv. Industry Analysis 60

v. Trend Analysis 61

b. Future prospects of the Organization 63

9. SWOT Analysis of the Organization 64

10. Conclusion 66

11. Recommendations for Improvement 67

12. References & Sources used 68

13. Annexes 69

i. Financial Statements (2009 - 2008) 69

ii. Financial Statements (2008 - 2007) 83

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BRIEF INTRODUCTION OF IMAGE GARMENTS’ BUSINESS SECTOR

Textile sector is one of the key sources of incomes, which contributes more than 45% of

the Pakistan’s earnings in our economy. In the race of involvement towards Textile

Exports of Pakistan, the contribution of Faisalabad at international levels is unrivaled.

Image Garments is also playing its contribution in economy to some extent.

Image Garments is in Textile Export Business of Knit Outerwear garments since 1985 in

Pakistan. The organization consists of a complete vertical unit with all processes ranging

from Yarn-procurement to Packaging based on integrated Information System.

The company is principally engaged in manufacture and distribution of knitted apparel

outerwear products right from basic to highly fashioned garments. In pursuance of goal to

provide its customers quality products in minimum time frame, Image Garments has set

up a high-tech ERP Oracle E Business Suite 11i, which is providing efficient Material

Requirement Planning and Enterprise Resource Planning activities. Moreover, Image

Garments knitting and operation team comprises highly skilled and trained professionals

including qualified engineers. This project will enhance the value of money for customers

by offering even more competitive rates to our clients.

Image Garments makes latest, traditional and cultural embroidery designs on home made-

up and provide a delicate product line in this stuff. It is currently operating a very large

linking section with the help of computerized linking machines and is able to offer the

finest quality.

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OVER VIEW OF IMAGE GARMENTS (PVT) LTD 1. Brief History of Image Garments

Image Garments is a manufcturer of quality Polo Shirts, T-Shirts & Sweat Shirts and

registered as a leading exporter of Knit outerwear

goods in Pakistan established by Mian. Qamar Aftab

in 1985. Image garments is leader in creating,

developing and manufacturing of knitted apparel

outerwear products right from basic to highly

fashioned garments thus responding to emerging

trends in the industry. It translates conceptual ideas of

customers into reality and shapes them through our

technical bent and professional acumen.

Image Garments is adhering with intrinsic values of commitment, integrity, innovation

and rapid services from last 25 years and supplying its quality products to major

European and American importers, wholesalers and retail chain stores.

To name a few, Image Garments has been working with American eagle, Converse,

Tommy Hilfiger and many others. At Image Garments, we feature a high tech production

facility that is flexible and quickly adaptable to meet customer specific needs. Image

Garments do all sorts of embellishments with embroidery, appliqué and printing.

Vision Statement

“To be Worlds best knit outerwear garments company”

To transform the company into a modern and dynamic knit outerwear garments company

with highly professionals and fully equipped to play a meaningful role on sustainable

basis in the economy of Pakistan.

Mission Statement

To provide quality products to customers and explore new markets to promote/expand

sales of the company through good governance and foster a sound and dynamic team, so

as to achieve optimum prices of products of the company for sustainable and equitable

growth and prosperity of the company.

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Message of the Chief Executive (Mian Qamar Aftab)

“The chief executive who knows his strengths and weaknesses as a leader is likely to be

far more effective than the one who remains blind to them”

At Image Garments (Pvt) Ltd, we firmly believe in the "Customer Satisfaction

Approach". As, it always come through 100% fulfillment of Commitment, Quality,

Competitive Prices and in time shipment.

We are producing satisfied customers around the globe every minute.

We look forward to an opportunity to serve customers, as we firmly believe that there is

only one judge of great services, a satisfied and wining customer.

2. Nature of the Organization

Image Garments (Pvt) Ltd is a Knit outerwear textile

which offers a broad range of knit apparel to meet

customer manufacturing needs. Whether big or small,

customer orders are executed with precision, in

accordance with the highest quality standards.

“You can rely on Image Garments to get the

job done right!”

Image garments deals in Polo shirts, Zipper Shirts, T-Shirts, Sweat Shirts, Hoods (Both

pullover and zipper), Jogging and sweat trousers and shorts.

At Image Garments, we feature a high tech production facility that is flexible and quickly

adaptable to meet your specific needs. Image Garments do all sorts of embellishments

with embroidery, appliqué and printing.

Quality Control

Quality procedures and checks exist at all levels of operations at

Image Garments. Image Garments has installed strong IT based

systems to ensure delivery of quality products to our valued

customers.

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Compliances

Image Garments is proud being SA 8000, SA 14001, Oeko Tex and WRAP certified.

These certifications ensure that its products are produced under lawful, humane and

ethical conditions. Following are the core standards these certifications ensure.

• Compliance with Laws and Workplace Regulations

• Prohibition of Forced Labor

• Prohibition of Child Labor

• Prohibition of Harassment or Abuse

• Compensation and Benefits

• Hours of Work

• Prohibition of Discrimination

• Health and Safety

• Freedom of Association and Collective Bargaining

• Environment

• Security

Image Garments (Pvt) Ltd ISO 8000:2001 certified

Faisalabad, Pakistan. - November 18, 2008

Image Garments (Pvt) Ltd Oeko - Tex Certified

Faisalabad, Pakistan. - December 18, 2009

Image Garments (Pvt) Ltd ISO 14001:2004 certified

Faisalabad, Pakistan. - October 28, 2009

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What sets Image Garments (Pvt) Ltd apart?

• 25 years of manufacturing experience

• Real Time Online Production Reporting System

• Strong IT Based Quality Systems

3. Business Volume

Image Garments has a total number of stocks Rs. 70,000,000/- (700,000 shares @ Rs.

100/- each) and Issued, subscribed & paid up capital is Rs. 49,700,000 (497,000 shares @

Rs. 100/-). Moreover, Image Garments has installed capacity of stitching over 400,000

garments per month. Image Garments is SA 8000 and ISO 14001 Certified.

Image Garments has a highly skilled team with years of manufacturing experience. Its

goal is to “always surpass your expectations!”

4. Product Lines

An overview of Image Garments (Pvt) Ltd Manufacturing Capabilities:

• Polo Shirts

• Sweat Shirts

• Hoods (Both pullover and zipper)

• Jogging Trouser (Sweat Pants)

• T-Shirts

• Zip Shirt

• Open Front Shirt

• Under Garments

• Shorts

• Golf Shirts

• Base ball Shirt

• Tennis Shirt

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Embellishment Samples

Embroidery

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Appliqué

Printing

Special Treatments

Keeping forth our customers' potential needs, we offer a variety of value added services.

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Organic Cotton Apparel

Organic cotton is grown using methods and materials that

have a low impact on the environment. Organic production

systems replenish and maintain soil fertility, reduce the use of

toxic and persistent pesticides and fertilizers, and build

biologically diverse agriculture. Third-party certification

organizations verify that organic producers use only methods

and materials allowed in organic production.

We have added certified material suppliers into our supply chain and now offer garments

made with organic cotton.

Moisture Wicking (Performance) Apparel

Performance apparel is made with fabric containing moisture

management capabilities. It efficiently wicks moisture and

transports it away from the skin, helping maintain body

temperature and ensuring consistent comfort through even the

most extreme and rapid transitions in climate and physical

activity level. It keeps you dryer longer in more situations over a greater range of

activities and climates.

We have partnered with some reliable suppliers in Thailand and Taiwan and import

fabric from them to fulfill your performance apparel needs.

Soil Release Finish

A soil release finish allows fabric to remain clean three to four

times longer than fabric left untreated. Like the name implies, a

soil release finish keeps dirt away from binding to the fabric and

allows it to be more easily removed through cleaning. Soil

release finishes protect against both water-and-oil based soils and resists wetting by oily

and watery liquids.

We offer this finish via reliable and competent dye houses we have partnered with.

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Stain Resistant Finish

A finish is added during dyeing to provide stain resistance. It

creates a barrier to make it harder for certain stains such as

grass, ketchup and mustard to stain fabrics made with this

yarn. This stain resistant finish also provides some resistance

to oil based stains.

We offer this finish via reliable and competent dye houses that we have partnered with.

5. Customers of Image Garments

Our portfolio of customers includes some of world's renowned brands.

6. Competitors

There are many competitors of the company Group. It includes national and international

competitors.

National Competitors

• Shama Textiles (Pvt) Ltd, Faisalabad

• Omer Apparels (Pvt) Ltd, Faisalabad

• Amtex Textiles Mills, Faisalabad

• Adnan Sports (Pvt) Ltd, Gujranwala

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• Jaguar Group, Faisalabad.

• Akbar Fabrics (Pvt) Ltd, Faisalabad

International Competitors

• Silver Screen Image India (Pvt) Ltd, India

• Ramdve Fashions, India

• Tonton Garments (Shenzhen) Co. Ltd, China

• D.M Apparels, India

• Prideway Industrial Company Ltd, China

• Secret Seven Design & Merchandising, England

• American Apparel, United States

• Beni Ltd, Bulgaria

• Body Script, Canada

• Chef D’oeuvre Pte Ltd. Singapore

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ORGANIZATIONAL STRUCTURE a) Organizational Hierarchy Chart

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b) Number of Employees

There are 1,150 employees working in Image Garments. Further details about the

employees are described as bellow.

Permanent Employees 250

Daily Wages Workers 900

-------------

Total 1,150

c) Main office

Image Garments (Pvt) Ltd

11 KM, Satiana Road,

Faisalabad, Punjab 38000,

Pakistan.

Phone

+92 (41) 877 9792

Fax

+92 (41) 877 9398

Email

sales@imagegarments.com

Website

www.imagegarments.com

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d) Introduction of all the departments

Managements of Image Garments (Pvt) Ltd understand the worth of specialization and

division of work, so a number of departments have been established to cope with

changing and competitive environment. These departments are illustrated below:

1. Customer Services

2. Industrial Engineering Department

3. Costing and Budgeting

4. Production Planning and Co-ordination

5. Purchase Department

6. Inventory Department

7. Quality Control and inspection department

8. Processing Department

9. Cutting and Embellishment Department

10. Stitching Department

11. Packing Department

12. Shipping Department

13. Export Department

14. Finance & Accounts Department

15. IT Department

16. Marketing Department

17. Administration and Human Resource Management Department

Functionalities and responsibilities of the afore said departments are briefed hereunder

1. Customer Services Department;

Effective coordination and Communication with customers is a key feature to get

customer satisfaction. Considering the need of competent and effectual customer services

department to improve liaison with customer, customer services department has been

instigated. Merchandisers are hired to take customer orders and get final the deal.

Merchandisers are allowed to fix the terms and conditions of contracts. Cost Sheet for

each order is prepared prior to offering of unit price to customer. This cost sheet is

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validated by Costing and Budgeting department. Also it is in the job description of

merchandisers to update the customers regarding the Status of orders. After booking of

orders in System merchandisers coordinate with PPC department regarding the specs of

orders and tentative date at which order is require to be shipped.

2. Industrial Engineering Department

Industrial Engineering department mainly working on variable involved in production

and ensure the compliance of performance standards. It is working on determining on

SAM (Standard allowed minutes) based rate for piece rate and ensure that rate approved

in system is reconcile with SAM based rate. It also ensures that machines are in working

conditions and get ready for use in production. It also ensures that target assigned to unit

is completed on time or not, if not then find out the root and take remedial action to fix

the issue.

3. Costing and Budgeting Department

Budgeting is a tool which helps the management in ensuring of its business Objectives.

Based on past performances and experience Key Performance Indicators are defined by

budgeting department which are used in evaluation of department performance. In Image

Garments main responsibilities of budgeting department involved validating of cost sheet

prepared by merchandiser, making budgets of order received, presentation of final budget

analysis to Board of Management after shipping of order and making of monthly

departmental budgets to control expenses.

4. Production Planning and Co-ordination (PPC);

Production, Planning and Control Department helps the organization to make effective

use of production facilities towards the right direction, in given period of time.

PPC department has been subdivided into two divisions,

♦ Production Planning

♦ Control

The PPC department gets Purchase Orders from merchandisers and performs making of

‘Bills of Materials (BOM)’ and Planning against such orders.

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5. Purchase Department

Purchasing department is indirectly attached with production department. Production

department requires production material and accessories, therefore it raises demands /

requisitions of materials and accessories purchase to Purchase department. The purchase

department receives those requisitions and call quotations from market and issue

Purchase Orders to selected vendors. Vendors provide the agreed Quantity on agreed rate

by keeping the levels of quality, as per Purchase Orders.

6. Inventory Department

The Inventory Department keeps the track of stock on hand and orders the necessary

items to restock, through the purchasing department.

The Inventory Department of Image Garments is under the Finance Department. In

Inventory Department following are the different types of stores at Image Garments;

• Main Store (General Items)

• Accessories Store

• Fabric Stores

• Shipment Store

• Leftover & Rejection Store

7. Quality Control and Inspection Department

Quality may be defined as the set and required parameters by the customers. It is quite

difficult task to fulfill the customer requirements.

To assure this thing IMAGE GARMENTS has following 2 departments;

i. Quality Control Department

This department behaves like an agent for Image Garments side, which checks the

required parameters and recommends solution at each level of process.

It has two sections,

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• Grey section -- It checks the fabrics for faults, attaches barcodes and clearance.

• Inline section -- It checks the finished and dyed fabric for faults.

ii. Quality Assurance Department

This department behaves like an agent for customer side, which audits the QC checked

fabric and give positive or negative opinion whether the fabric is according to customer

requirements or not.

8. Processing Department

Processing Unit of Image Garments (Pvt) Ltd has a paramount importance because it

actually provide the finish fabric product which is sent to customer as made up after

converting the fabric into the required stitched product. The processing unit of Image

Garments comprises of the following departments;

• Knitting Department

• Bleaching Department

• Finishing Department

• Printing Department

• Dyeing Department

• Folding Department

• Quality Control Lab

• Digital Design Studio & Embroidery Department

• Sample Room

9. Cutting and Embellishment Department

Fabrics are cut according to the requirement of the end customers with the help of man

power as well as lasted automatic cutting machines of GGT and Glummer which are

computerized and just the design of cutting is fed in the computer and automatic cutting

starts.

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10. Stitching Department

In stitching department, the garments have been stitched in the different shapes, like as;

• EMB / Pockets

• Placket

• Collar/ Collar Closing / Labels

• Shoulder (Left)

• Arm Hole (Left)

• Sleeve Hem (Left)

• Side Seam (Left)

• Side vent (Left)

• Care Label Placement

• Bottom Hem

• Side vent (right)

• Side Seam (right)

• Sleeve Hem (right)

• Arm Hole (right)

• Shoulder (right)

11. Packing Department

Packing is the process by which garments dispatched for the shipment as per

requirements of the buyers.

At Image Garments, there are two major types of packaging;

i. Solid packing:

In which, organization used the same size and colors of garments in one poly bag.

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ii. Assorted packing:

In which, organization not used the same size and colors of garments in one poly bag.

12. Shipping Department

At Image Garments, Shipping department is performing two functions

• Ware House.

• Maid-Up Dispatch

Shipping department is responsible to dispatch all types of Export after packing. It

depends on the marketing department when it should be dispatched. The prime

responsibility of the shipping department is to make “maid-ups dispatch Report”.

Shipping Department has a continual liaison with Marketing Department and to fix

stickers according to the customer demand on the cartoons. The dispatch report also send

to the head office and as well as customer. Maximum container capacity is to six

containers per day.

13. Export Department

The export department of Image Garments is known as one of the best export

departments in the textile industry because of the commitment and dedication of

employees, the determination of work & the best management system.

The Export department is responsible for the export of Knit outerwear garments all over

the world. Therefore, this department has to fulfill all the legal requirements and prepare

important documents involved in the exports.

The Export department of Image Garments performs three major functions;

i. Shipment of Knit Outerwear Garments

After receiving packing list from shipping department, export departments starts its main

functions. It usually prepares the following documents to ensure the timely shipment;

• Letter of Credit (L/C)

• Bill of Exchange

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• Commercial Invoice

• Export Declaration Form

• Certificate of Origin

• Packing List

• Customs Invoice

• Textile Declaration Form

• Inspection Certificate

• Shipping Bill/Bill of lodging/Air Way Bill

• Manufacture's Certificate

ii. Quota System

Most of the customers are American and U.S. Government allocate quota to third world.

Infect quota is a quantitative restriction and more than that can't be shipped to America

from a particular country �

iii. Claim for Rebates

Rebate is actually a "Duty Draw Backs". The duty which an importer pays to government

for the product that is re-exported after some process, then government pays back some

of its part. This pay back of duty is called rebate.

14. Finance & Accounts Department

The Accounts & Finance Department is responsible for various accounting activities

including the task of preparing the comprehensive annual finance report and the

compilation and development of the annual budget for the Image Garments

A Brief introduction of Accounts & Finance functions include:

• Provides financial support services to the entire organization.

• Provides timely and accurate financial reporting.

• Processes receivables, payables and payroll.

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• Grant and intergovernmental revenue administration.

• Banking relations.

• Provides timely and accurate financial reporting.

• Processes receivables, payables and payroll.

• Grant and intergovernmental revenue administration.

• Banking relations.

• Debt service analysis and bond payments.

• Administration of special assessments.

• Risk management and loss control.

• Implementation of financial and internal controls.

15. IT Department

In Image Garments, Information Technology has been that much flourished that it will be

very difficult to survive for Image Garments without IT Department at this time. Image

Garments has an ERP environment, based on ERP Oracle E-Business Suite 11i.

Therefore, every department is interconnected with each other with the help of quality

integrated computerized system.

Moreover IT department has developed many oracle based system, which are as follows;

• Human Resource Management System (HRMS)

• Gate Automation System (GAS)

• Vehicle Management System (VMS)

• Inventory Management System (IMS)

• Waste and Leftover Management System (WMS)

• Employee Management System (EMS)

• Organizational Planning and Development (OPD)

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16. Marketing Department

Marketing Department cannot be ignored in any organization because it holds the

position of heart & soul for that organization.

In the aforesaid context, Image Garments cannot ignore the essential importance of this

department. The Marketing manager with the coordination of Chief Executive and

Director marketing performs all the marketing activities. They not only promote their

department but also visit the foreign markets to search their new customers.

The personnel of marketing department perform the following tasks;

• Look overall problems of the departments and the problems faced by the

customers.

• Devises all the marketing related policies.

• Delights the customers by solving their problems.

• Co-ordinates with the merchandising department.

• Checks and observes all the activities of textile sectors especially keeping focus

on the competitor’s activities.

The marketing department with the help of customer services department makes it

possible that the order place by the customers should be completed within specified time.

The Image Garments sells the product with the brand name of its customers.

17. Administration and Human Resource Management Department

The Admin & HR Department in Image Garments (Pvt) Ltd is involved in following

different types of admin and human Resources development activities;

i. Recruitment

At Image Garments the recruitment is almost online, up to the middle level management

and has the following procedure;

§ Approved strength in each department

§ Invitation of vacant or new positions Applications

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§ Scrutinizing of Applications

§ Test including intelligence and aptitude tests

§ Interviews in panel form

ii. Training and Development

The training and development process of Image Garments is well-built and provided

following 2 types of trainings;

Indoor Training includes;

• Apprentices

• Trainee supervisors

• Trainee operators

• Trainee Engineers

• Management Trainees

• Trainee Officers

Outdoor Training includes;

• Training in Institutions

• Meetings and interviews

iii. Compensation

• Market Rates

• Overtime

• Incentives

• Vehicles

• Accommodation

iv. Rewards and Punishment

• Appreciation

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• Cash Prizes

• Promotions

For Control Purposes, punishments are also prevailing for workers at Image Garments;

• Disciplinary Actions

• Show Cause Notice

• Suspension

• Termination

• Charge Sheet

• Fines

v. Performance Appraisals

Promotions at Image Garments have very fair methodology. Personality and job related

traits are evaluated at regular basis. Best performance results in good rewards.

vi. Employee Welfare

Employee benefits policies are being followed at Image Garments, which are as follows;

• Health Insurance

• Social Security

• 5% of profit

• Accommodation

• Transportation

• Canteen and Mess

• Leave Encashment

vii. Retiring and Termination

Gratuity and provident fund is being maintained for the retiring personals.

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e) Comments on the Image Garments’ Structure

Image Garments is a successful organization, where the all the departments are

interrelated and work together, in order to achieve the goals of the organization. Every

department deals with its own responsibilities and contributes in the strategic, tactical,

and operational planning of the business.

Today rapid emergence of technology played a vital role in the efficiency and

effectiveness of the business. The ‘Technology’ replaced the manual power and probably

plays a major role to enhance and expand the business. In order to achieve the levels of

technology and keep itself in the race of progress, Image Garments acquire the ERP

Oracle E-Business Suite 11i.

The major function of this organization to deals with knit outerwear garments and

contributes the incurable part in the Pakistan exports and economy. Image garments uses

high technology in the all departments particularly in dying, printing, bleaching, and

finishing departments. They have skilled and professional workers who are well aware of

their functions.

In this era of technology, the “Information” is the key to success in the business. This

means that the successful businessman will be who will have the right information at the

right time. This comment leads to the conclusion that entity is lacking in proper

communication between departments, thus the Information Sharing Process should really

be improved at Image Garments (Pvt) Ltd.

Moreover, in my 7 weeks tenure, I came to know that there is no quantifiable method or

techniques which can measure our problems that organization faces.

The overall analysis is indicating that the company’s progress has mainly attained

through dedication of employees. The effectiveness of its management, their willingness

to take advantage of opportunities and face challenges of changing economic picture, this

all contributes to the very much improved and sound position of company. This is really

appreciable for the devotion and hard work of all the employees of the company.

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PLAN OF MY INTERNSHIP PROGRAM a. A brief introduction of the branch where I did my internship

I have performed my internship in main office of Image Garments (Pvt) Ltd, situated at

11 Km Satiana Road, Faisalabad, Pakistan.

Image Garments is basically a manufcturer of quality Polo Shirts, T-Shirts & Sweat

Shirts and registered as a leading exporter of Knit outerwear goods in Pakistan

established by Mian. Qamar Aftab in 1985.

Image garments is leader in creating, developing and manufacturing of knitted apparel

outerwear products right from basic to highly fashioned garments thus responding to

emerging trends in the industry. It translates conceptual ideas of customers into reality

and shapes them through our technical bent and professional acumen.

Image Garments is adhering with intrinsic values of commitment, integrity, innovation

and rapid services from last 25 years and supplying its quality products to major

European and American importers, wholesalers and retail chain stores.

b. Starting and Ending dates of my Internship

The time duration of my internship at Image Garments (Pvt) Ltd is 7 weeks.

• Starting date of my Internship is April 12, 2010, and

• Ending date of my Internship is May 31, 2010.

c. Names of the departments in which I got training and the duration of training

During my internship at Image Garments, I have got training in the following

departments;

• Purchase Department.

• Operations and Inventory Department.

• Finance & Accounts Department.

In order to gain the successful experience of Finance & Accounts Department (as my

specialization subject), I want to have a complete knowledge of works performed by

other departments, which based/initiate the working activities of Finance & Accounts

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department. Therefore, I have started my training from Purchase Department.

Subsequently, I have trained in Production and Inventory departments. Finally, I have

completed my training in Finance & Accounts Department.

Duration of Training

The duration of my training at Image Garments (Pvt) Ltd is as follows;

Sr. # Name of Department Time Duration

Days From (Dates) To (Dates)

1 Purchase Department 12 April 12,

2010

April 23,

2010

2 Operations and Inventory

Department 16

April 24,

2010 May 09, 2010

3 Finance & Accounts Department 22 May 10, 2010 May 31, 2010

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TRAINING PROGRAM a. Detailed description of the operations / activities performed by the department(s) I

worked in.

Every successful organization uses different departments to fulfill its tasks and functions

with the coordination of work force, technology and available resources. These all

departments interlinked with each other with their particular responsibilities and make

their required contribution in achievement of organization goals and objectives.

In the context of aforesaid statement, Image Garments also have a conventional

organizational structure. Following is the detailed description of the operations / activities

of the departments, I worked in;

A. PURCHASE DEPARTMENT

Purchasing department is indirectly attached with production department. Production

department requires production material and accessories, therefore it raises demands /

requisitions of materials and accessories purchase to Purchase department. The purchase

department receives those requisitions and call quotations from market and issue

Purchase Orders to selected vendors. Vendors provide the agreed Quantity on agreed rate

by keeping the levels of quality, as per Purchase Orders. Following activities have been

performed at Purchase department;

• Take quotations from different suppliers in the market with respect to orders

requisitions and submit the same to CEO for approval.

• Making of “Blanket Purchase Agreements” and “Purchase Orders” in Oracle E-

Business Suite 11i, by taking the rate, quality and Source mentioned on approved

comparative statements.

• Checking of Planning “Need by Dates” in Oracle planning system with respect to

Requisition for making the aforesaid PO.

• Verification of ‘Quantity of items’ calculated by ERP against Orders and

requisition.

• Initiate the Purchase order in the Approval hierarchy of Purchase Order, in Oracle E-

Business suite.

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B. FINANCE DEPARTMENT

The Finance Department of Image Garments plays a vital role in managing the

transactions and allocation of resources. The Finance Department is further divided into 3

segments on the basis of their respective core activities.

i. Finance Department

ii. Accounts Department

iii. Costing and Budgeting Department

The details of operations / activities of each section are as follows;

i. Finance Department

In every organizing, Finance department considers as the pillar of the organization.

Therefore, it requires an effective control and financial information system, to track down

the Cash inflows, Cash outflows, Control uncertainties, Investments and their respective

evaluations.

Keeping in view the aforesaid areas, the Image Garments have well skilled & trained

professionals as well as quality Information System (ERP Oracle E-Business Suite 11i),

which helps the organization to enhance its efficiency.

Following are the activities performed by the Financial Department at Image Garments

(Pvt) Ltd;

• Estimation of the Business Prospects

• Developing Budgets with the help of other divisions of the business as well as the

higher authority

• Short and long term Collections

• Short and long term Payments

• Calculations of markup on Financings.

• Review of Lease Installments schedules.

• Analysis of Risk and Returns on Investments.

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• Management of Taxation.

• Debtors & Creditors Ageing Analysis.

Financial department starts its process with evaluation of business, financial position and

encounter that long and short term receipts and payments.

ii. Accounts Department

The Accounts Department is responsible for various accounting activities including the

task of preparing the comprehensive monthly, quarterly and annually Financial

Statements.

Following activities have been performed by Accounts Department at Image Garments;

• Verify the Monthly Stock Taking Reports

• Checking Over time Detail sheet & Payment sheets

• Checking Security staff Over Time

• Checking of New Appointment, Missing Days, Reinstate, Arrears Bills

• Checking of Daily Wages Bills

• Checking of Final Dues

• Checking Leave Encashment

• Checking Contract Wages sheets (Twice in a Month)

• Checking Incentive Payment sheets (Twice in a Month)

• Checking of Extra Payment sheets

• Checking the ‘overview’, ‘distribution accounting’ and ‘Status of payments’.

• Checking of Prepayments and advances made, through a defined mechanism,

properly documented and followed by the finance department.

• Verification of the Approval hierarchy of Invoices.

• All kind of Gate passes Receive Reconcile Maintain & send to Head Office.

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• Preparation and Verification of Vouchers on Daily Basis & Prepare Expense

Detail Summary

• Prepare & Verify the Utility Bills (Electric, Telephone, Sui Gas)

• Verify the Monthly Voucher’s of Contract Vehicle, Photocopier, Subsidiaries

• Verify the Fuel & Maintenance Bills, Mobile Bills.

• Prepare the Assets Detail Time to Time.

• Prepare the Over Head Detail & Salary Comparison.

• Maintain of All kind of Record in Files for Audit.

• Preparation and Checking of Final Settlements.

• Verification of GRN and receipt against Invoices.

iii. Costing & Budgeting Department

Budgeting is a tool which helps the management in ensuring of its business Objectives.

Based on past performances and experience Key Performance Indicators are defined by

budgeting department which are used in evaluation of department performance. In Image

Garments main responsibilities of budgeting department involved validating of cost sheet

prepared by merchandiser, making budgets of order received, presentation of final budget

analysis to Board of Management after shipping of order and making of monthly

departmental budgets to control expenses.

C. OPERATIONS & INVENTORY DEPARTMENT

OPERATIONS DEPARTMENT

Operations department of Image Garments is subdivided in to two departments

1. Production Department

2. Processing Department

The detailed activities of aforesaid departments are as follows;

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1. Production Department

i. Production, Planning and Control Department (PPC)

Production, Planning and Control Department helps the organization to make effective

use of production facilities towards the right direction, in given period of time.

PPC department has been subdivided into three divisions,

♦ Production Planning

♦ Control

♦ Yarn

The PPC department gets Purchase Orders from merchandisers and performs making of

‘Bills of Materials (BOM)’ and Planning against such orders. As the PPC is involved at

each level of Purchase Order, therefore, the activities of PPC department is segregate in 3

divisions, which are as follows;

• Planning

This division plans the whole Po with order specifications, work schedule, time line for

knitting, dyeing (Lot Making), finishing and up till dispatching of fabric to customer

(Apparel Division).

• Control

This division actually looks after the PO time line execution for in time production and

dispatching to customer. Many people name this division as Peechay Peechay Challo

(PPC) due to its involvement in PO.

• Yarn

This division makes the availability of yarn in time before knitting gets started.

ii. Fabric:

Image Garments obtains following types of Fabrics after processing the fibers and threads

from outsourcing;

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Types of Fabric:

a) Jersey

• Single Jersey

• Heavy Jersey

• Bird eye Jersey

• Striper Jersey

• Lycra Jersey

• Seeded Jersey

• Printed Jersey

b) Pique

• Pique Locust

• POP – Corn Pique

• Honey Combed Pique

• Mesh Pique

c) Inter Lock

• Simple interlock

• Sueded interlock

d) Rib

• Rib 1*1

• Rib 2*2

• Rib 11*1

• Rib 15*1

e) Fleece

• Fleece

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• Sueded Fleece

f) Terry

• Brushed Terry

• French Terry

• Baby Terry

iii. Cutting:

PPC department (Production, planning and control) issues requisition to cutting

department. The cutting department takes the fabric from folding department and cuts the

fabric according to the specifications & need. Before cutting, the Cutting Manager checks

ply to ply shade. Moreover, he cuts out continuity and make mock up for approval shade

of trims. Fabric cutting manager checks marker species and shape of lay. Later on, group

members of cutting department arrange shape of lay in the bundles and record the same

in the job cards.

From the cutting department the fabric is transferred to the store from where the fabric is

issued on the required floor.

The objectives of cutting department are as follows;

• Quality control

• Cutting

• Minimize Wastage

iv. Induction:

After cutting department fabric comes in induction department. In induction department

fabric pieces are arranged in sizes, colors and Purchase Order wise.

Induction department is the responsible of the quantities, maintain, balance of receiving

from the cutting department. Others responsibly of the induction department is issues the

particular quantities to stitching department for furthers operations.

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v. Stitching:

Stitching department is one of the well equipped machines departments in the field of the

Textile in Pakistan that’s why there are most of the loyal customers of the Image

Garments from all over the world especially American eagle, Converse and Tommy

Hilfiger.

The stitching department consists of 524 helpers on daily wages working in the whole

stitching department and having 400 stitching machines. Every machine operator has a

unique no to find out the any type of the fault.

The objectives of the stitching department are

• The cost minimization and

• To minimize wastage

• Best utilization of time

• Quality control by line checker

Following are the specification of fabric pieces which are stitched at Image garments;

• EMB / Pockets

• Placket

• Collar/ Collar Closing / Labels

• Shoulder (Left)

• Arm Hole (Left)

• Sleeve Hem (Left)

• Side Seam (Left)

• Side vent (Left)

• Care Label Placement

• Bottom Hem

• Side vent (right)

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• Side Seam (right)

• Sleeve Hem (right)

• Arm Hole (right)

• Shoulder (right)

The Machines available in stitching department of Image Garments are as follows;

1. Over Lock

2. Flat Lock

Over Lock

Single Needle 2 Threads

Single Needle 3 Threads

Double Needle 4 Threads

Double Needle Puller

Elastic Attach Bikini

Flat Lock

Cylinder Bed 5 Threads

Mini Cylinder 5 Threads

Flat Seaming 5 & 6 Threads

Feedo Flat Bed 4 Needles 6 Threads

Body Hem 5 Threads

Puller Attach

Feed of the Arm (inseam + Flat seam)

Flat Bed Elastic Attach

Tap Attach Cutter

Multi Needles (6T, 4N) Manual

Auto Trimmer

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vi. Packing:

Packing is the process by which garments dispatched for the shipment on the requirement

of buyers.

At Image Garments following two types of packaging;

• Solid packing -- In which organization uses the same size and colors of garments

in one poly bag.

• Assorted packing -- In which organization not used the same size and colors of

garments in one poly bag.

Image Garments follow the packing instructions provided by the buyers. Such

instructions are as follows;

• Colors

• Size

• Fold size

• Insert board

• Upc sticker

• Pcs/pack

• Poly bag

• Master poly bags

• Pcs/carton

• Size sticker

Lock Stitch

Double Needle 4 Threads

Zig - Zag 2 Threads

Others

Bartake Button Hole Button Attach Single Needle 2 Threads

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• Baler bag sticker

• Carton sticker

• Magic tape solo tape

vii. Shipping Department

At Image Garments, Shipping department is performing two functions

• Ware House.

• Maid-Up Dispatch

Shipping department is responsible to dispatch all types of Export after packing. It

depends on the marketing department when it should be dispatched. The prime

responsibility of the shipping department is to make “maid-ups dispatch Report”.

Shipping Department has a continual liaison with Marketing Department and to fix

stickers according to the customer demand on the cartoons. The dispatch report also send

to the head office and as well as customer. Maximum container capacity is to six

containers per day.

2. Processing Department

Processing Unit of Image Garments (Pvt) Ltd has a paramount importance because it

actually provide the finish fabric product which is sent to customer as made up after

converting the fabric into the required stitched product.

Image Garments obtains all Processing services from Outsourcing. Following are the

outsourcing departments from which Image garments obtains services;

• Knitting Department

• Digital Design Studio

• Bleaching Department

• Printing Department

• Dyeing Department

• Finishing Department & Folding Department

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Main Store

INVENTORY DEPARTMENT

The Inventory Department is also under the Finance Department. There are different

types of stores given below: - Main Store (General Items)

i. Accessories Store

ii. Fabric Stores

iii. Shipment Store

iv. Leftover & Rejection Store

The detail of important stores is given below;

i. Fabric Store

PO wise fabric comes from the outsourcing units, according to the purchase order.

Fabrics issued towards cutting depart on requisition.

ii. Accessories Store

Accessories store provided the accessories like Thread, labels, Buttons, Ploy bags and

stickers on the requisitions from departments.

iii. Shipping Store

After completing the Garments for the export purpose is sent to the shipping store.

iv. Leftover & Rejection Store

All the waste and rejected pieces are sent to rejection store.

Moreover, Image Garments has strong inventory management system (IMS) which is

divided in following two sections;

Fabric Store

Accessories Store

Shipping Store

Rejection Store

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i) General

All the things not directly related to the production but are necessary or supporting to the

production, i.e. Mobiles, computers, stationary, Air Conditioners, Electric Generators,

Furniture and Fixture etc.

ii) Accessories

All the things that are related to the production and are directly used in producing the

finished products are kept in accessories division i.e. Buttons, stitching thread, inlay

cards, labels, poly bags etc.

Working of Store

The working at store consists of following three divisions: -

i) Counting

When Image Garments purchase any thing from the market the buyer often delivered it to

main stores. After checking of security the Inward Gate Pass (IGP) is prepared and is

forwarded to the counting section. Afterward, all the purchased material is send to the

quality section from store.

ii) Quality

Quality section is responsible for the quality of the goods purchased. If the goods relate to

general division than the person who has ordered it, verified the quality of such goods

and if the good relate to accessory division, Image Garments quality assurance team

checks the quality of such goods very carefully. If the quality of the good is up to the

mark than the good is forward to the store department otherwise it is rejected.

iii) Store

Store is responsible for stocking the goods & accessories and further issues, if the

demand is made by any authorized person. It is a complete system to stock and manage

all the accessories. After receiving the Goods Received Note (GRN) from the ‘quality &

quantity section’ the staff of store verifies quantity of that good once again physically. If

the quantity of the accessory found complete, they stock it, in specific rack and records

the same.

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b. Detailed description of the tasks assigned to me.

During my Internship at Image Garments (Pvt) Ltd, I have been assigned following tasks

to be performed in different departments;

Purchase Department

In Purchase Department, I have assigned the following tasks to perform;

1. Take quotations from different suppliers in the market with respect to orders

requisitions and submit the same to CEO for approval.

2. Making of “Blanket Purchase Agreements” and “Purchase Orders” in Oracle

E-Business Suite 11i, by taking the rate, quality and Source mentioned on

approved comparative statements.

3. Checking of Planning “Need by Dates” in Oracle planning system with

respect to Requisition for making the aforesaid PO.

4. Verification of ‘Quantity of items’ calculated by ERP against Orders and

requisition.

5. Initiate the Purchase order in the Approval hierarchy of Purchase Order, in

Oracle E-Business suite.

Operations & Inventory Department

In Operations Department, I have assigned the following tasks to perform;

1. I assisted the Asst. Manager Accounts to view the Order wise and date wise

planning of “Dyeing for Lot making” and meeting with Manger Fabric &

Knitting in respect of new orders.

2. I have assisted the Asst. Manager Dyeing in dispatching the lots to dyers and

view report of “Job remaining quantity”. This practice adds more values to my

professional knowledge.

3. Conduct surprise checking of dyeing house to check the production process

with Assistant Manager Dyeing.

4. I attended meetings along with Fabric manager to discuss the planning of

fabric lots with PPC manager and update the GM operation regarding the

status of fabric requirement of order.

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I have been assigned the following tasks to perform in Inventory Department;

1. Physically inspect and count the stocks on hand, maintain stock records and

reconciled accordingly.

2. Issuance of accessories to various departments on approved requisitions.

3. Making of ‘Goods Received Notes’ in system on arrival of goods at store after

inspection.

4. Assist the Manager Inventory in calculation of EOQ, Safety level, Danger

level annual carrying and ordering costs etc.

Finance & Accounts Department

In Finance & Accounts Department, I have assigned the following tasks to perform;

• Checking of Purchase orders quantity and rates with respect to Invoices from

Suppliers.

• Checking of ‘Receipt of Items’ against Purchase orders before making the

voucher in system.

• Making of Payables, Payments, Receipts, Journal Vouchers and adjustment

vouchers in system.

• Segregate the transactions accordance with their nature.

• Choosing of right charge Account for the purchase of materials, assets, liabilities,

expenses and revenues.

• Analysis of transactions, policies adopted according to the business.

• Analysis of Accounts Payable ageing.

• Analysis of Accounts Receivables ageing.

• Perform bank reconciliations with Asst. Manager AR.

• Assist Manager Accounts in making of monthly Financial Statements.

• I made ratios analysis and interpret results.

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• Preparation of Pre and Post shipment costing.

• Collection from Accounts Receivables.

• Payments to Accounts Payables

• Following the Standard Operating Procedures and Accounting policies.

Moreover, I also have assigned the manual checking/verification of the following;

• Manual checking of ‘Cash payment Receipts (Vouchers)’ with “ERP generated

Cash Remittance Advice”

• Verification of serial numbers of Cheques that new Cheque Books have been

properly entered in the ERP Accounts Payable module.

• Verification of Cheques with the system generated ‘Cheques Remittance Report’

that all the Cheques are prepared as per requirement and with same amounts as

vouched in system.

• Employees Salary Sheets, Withholding tax calculations, EOBI Calculations,

Social Security deduction,

• Worker’s Wages Sheet,

• Vehicle Readings of employees,

• Transportation Bills of employees

• DHL and OCS Bills’ verification for each document and parcel

• Provident fund part payments

• Markup payments,

• Purchase of Estate installments bills

• Overtime sheets and Debit Notes

• Cash Bills.

44| P a g e

STRUCTURE OF FINANCE DEPARTMENT a. Finance Department Hierarchy

b. Number of Employees working in Finance Department

There are 12 employees in numbers, working in Finance Department of Image Garments.

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c. Finance & Accounts Operations

The Finance & Accounts department of Image Garments consists of professionals’ team,

which regularly review the company's requirements and converts their personal skills into

efforts to continually improve the financial position & performance of the company.

The team of Financial & Accounts department endeavors to build a working environment

through effective management practices and creative ideas. It enables the management to

make successful use of financial resources and human capabilities to serve customers

better.

The team of Finance & Accounts department consists on following personnel;

• Chief Executive (CEO),

• Chief Finance Officer (CFO),

• Manager Export,

• Manager Accounts,

• Manager Costing & Budgeting

• Asst. Manager Taxation,

• Asst. Manager Accounts AP (Accounts Payables),

• Asst. Manager Accounts AR (Accounts Receivables),

• Asst. Manager Exports

• Officer Costing Budgeting

• Officer AR, and

• Cashiers.

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FUNCTIONS OF FINANCE DEPARTMENT a. Accounting System of the Image Garments

Image Garments using the ERP Oracle E-Business Suite 11i to maintain its record and

developing the financial information. Here the management is developing its financial

statements according to the GAAP. All procedures of accounting department are

maintained with prescribed format. Management has defined accounting system to

recognize, evaluate and record the all monetary transactions to fulfill, not only the

internal requirements but also the external stake holder’s needs of information, for their

decision making.

All activities of accounting department are based on authenticity and deficiency. Every

transaction all monetary action is verified very strictly before taking them into account.

Image Garments maintains accounting transaction separately in the following ERP

accounting Modules;

• Accounts Receivable Module

• Accounts Payable Module

• Fixed Assets Module

• Exports Management Module

• Taxations Management Module

• General Ledger

b. Finance System of the Image Garments

Tracking your company's financial information is key to success. The fast pace of today's

business environment makes it absolutely essential to get your finance and accounting

department automated quickly and easily. Being able to produce comprehensive and

tailored financial reports and balance sheets will allow you to track your revenue and

expenses and see at a glance where you need to trim costs and increase revenue in order

to improve profitability and meet your financial objectives.

47| P a g e

In this context, the Finance system consider as the pillar of the organization. Finance is

the back bone of any new and prevailing business. Financial Management system comes

across different financial activities and the allocation of finance for operation of business.

Financial department starts its process with evaluation of business, financial position and

encounter the long and short term receipts and payments. Financial activities and

functions of the Image Garments include the following;

• Short term receipts

• Cash sales

• Collection from creditors

• Short term loans

• Short term Payments

• Creditors

• Employee salaries and wages

• Utility bills

• General expense

• Long term receipts

• Long term bank loan

• Retained earnings

• Pre payment from customers

• Long term payments

• Investments

• Capital investments

• Long term liabilities

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c. Use of electronic data in decision making

Information system is the fundamental system of any organization which consists of

connective data of all the departments. All the activities of major departments

(production, finance, accounting, marketing, Admin & HR) of Image Garments are

collected in one Information system, which helps the managers for decision making.

These days we are living in technology age despite of Stone Age although the technology

affects the internal work of organization as well as external work. Rapidly emergence of

technology increased the reliability of business world on effective Information systems.

Information system is used by top management inform them about strength to weakness

and opportunity to threat of the organization.

The Information system of Image Garments provides the answers of following CEO

questions;

What is the over all position of company?

What is the financial position?

What is the recruiting and staffing rate in organization?

What is technical competency of staff?

At what place we stand in the market?

How do we consider our technicality and competency among our competitors?

What can be our future planning?

What strategies our company will adopt in future?

Information system totally facilitate over top level management as well as middle level

management. It provides capital working structure, revenue and financial capability of

previous and current years, worth, good will and operating activities of the organization.

Each and every recorded is on information system and provide help the management to

take quick but effective decision making.

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d. Sources of funds

Finance is the backbone of any organization company used in different means for the

allocation of funds to run the business as well as to avoid deficit. There are conventional

method which are used for the generation of financial resource are given below;

The main source, to finance the operational activities is the reserves of the company

maintained. The second biggest source of fund is by taking advance from the customers.

Textile funds are running short of funds then the requirement is met by taking loans from

the banks. Personal loans are also generated from family and friends support to business.

Owner's Capital

Owner’s capital is one of the significant tools of business finance. Our organization uses

owner’s capital to fulfill the business activities and to run the smooth operations of the

business.

Retained Profit / Reserves

Retained profit is shown as reserves on a Balance Sheet and play a vital role as source of

funds.

Advances from customers

Another biggest source of fund is taking advance from the customers.

Financing from Banks

Image Garments also includes the following sources as well;

Bank Loan, Leasing, Hire Purchase, Buying on Credit, Selling Assets, Debtors and

Factoring.

e. Allocation of funds

Image Garments allocates its resources mostly on arranging the production of goods

against customer orders and proper functioning of its departments.

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CRITICAL ANALYSIS a. Financial Analysis

i. Ratio Analysis

Liquidity Ratios

Year Name Formula Calculations Ratios Interpretation

2007

Current Ratio

Current asset/ current liabilities

202,441,171 / 202,186,102 1.001

This ratio is used to determine the short-term liquidity position of an entity (1:1). This ratio shows that the entity has Rs 1 current assets to pay Rs. 1 of its current liabilities.

2008 261,133,304 / 254,490,029 1.260

Ratio in 2008 has increased by 0.260; .it means that company is utilizing its resources more effectively.

2009 300,736,975/ 299,591,370 1.003

Ratio in 2009 has decreased by 0.257 than 2008. But still entity has Rs 1 current assets to pay Rs. 1 of its current liabilities.

2007

Acid Test Ratio

Current Asset-Inventory/

Current liabilities

(202,441,171 –

142,541,548) / 202,186,102

0.296

This ratio is used to ascertain the more clear liquidity position of an entity because it excludes the inventory. The ratio of 0.296 indicates that the liquidity position is not good since entity has only Rs. 0.2962 of quick assets to pay its Rs. 1 current liability.

2008 (261,133,304 - 157,281,404) / 254,490,029

0.408 Acid Test Ratio in this year has increased by 0.112, this might be because of control over inventory

2009

(300,736,975 –

188,670,923)/ 299,591,370

0.374

Acid Test Ratio in this year has decreased by 0.034 this shows that company loosing control over its inventory.

2007

Sales to Working Capital

Sales / working capital

233,091,512 / 255,069

914.83 Times

This ratio shows the amount of cash required to maintain a certain level of sales. This high ratio indicates inadequate working capital, which reflects negativity on liquidity.

2008 386,479,278/ 6,643,275

58.17 times

Sales to working capital ratio of 58.17 times means the company has performed very well during this year

2009 382,052,131/ 1,145,605

333.49 times

Sales to working capital ratio of 333.49 times means the company has performed well in 2009 compare to 2007 but not as well as 2008.

2007 Working capital

Current assets – current liabilities

202,441,171 – 202,186,102 255,069

Working capital is a financial metric, which represents operating liquidity, available to a business. The company has low amount of working capital to

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finance its operations.

2008 261,133,304 - 254,490,029 6,643,275

In 2008 company working capital has increased than 2007 to finance its operations.

2008 300,736,975 - 299,591,370 1,145,605

Working capital has been decreased in 2009 with respect to 2008 but fair enough than 2007.

Leverage Ratios

Year Name Formula Calculations Ratios Interpretation

2007

Debt Ratio Total Debt / Total Assets

(95,169,800 + 3,331,333) / 292,497,874

33.68%

A metric used to measure a company's financial risk by determining how much of the company's assets have been financed by debt. It indicates that 33.68% of the company’s total assets are financed through the debts of the company.

2008 118,514,985 / 409,344,452 28.95% This the ratio has improved, as

compared to last year.

2009 142,662,252/ 460,212,611

31.00% The ratio is improved than year 2007 but less than year 2008

2007

Debt / Equity Ratio

Total liabilities / Equity

216,455,116 / 62,678,546 3.45

This ratio is a measure of the proportion of equity versus debt that is used to finance different portions of the company's operations. It shows that company debts are 3.45 times of company’s own equity.

2008 268,398,516 / 76,135,402 3.53

The ratio has improved as compared to last year, although the position is still worst.

2009 311,367,743/ 84,271,795 3.70

The ratio has improved as compared to 2008; as a result, the position is getting worst.

2007 Debt to Tangible Net worth Ratio

Total Debt / Tangible Assets

(95,169,800 + 3,331,333)/ 80,549,560

1.22

This ratio is used to ascertain the debt capacity of the firm and its collateral for loans. It shows that company total debts 1.22 times compared to the tangible assets.

2008 118,514,985 / 145,039,055 0.82 The ratio has improved in 2008

as compared to last year.

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2009 142,662,252/ 155,487,943 0.92 The ratio has improved than 2007

but decreased than year 2008.

2007

Current worth / net worth ratio

Current Worth(CA-CL) /net

worth(Owner's Capital)

255,069/28,700,000 0.89% The working capital running operations is a small in portion to Net Worth.

2008 6,643,275/49,700,000 13.37% In this year the working capital has been increase with respect to 2007

2009 1,145,605/49,700,000 2.31% The working capital of this year is slightly decrease compared to 2008.

2007 Total capitalization

ratio

long term debt / total capital

- - -

2008 - - -

2009 - - -

2007

Fixed asset ratio / equity ratio

(net profit / fixed assets)/ ( debt/equity)

(7,641,468/80,549,560)/29.07% 32.63%

Moderate return on fixed asset is better than previous year equity investment.

2008 (13,193,010/145,039,055)/48.65% 18.70%

Return on fixed asset is better than previous year equity investment. Due to better utilization of resources.

2009 (7,898,932/155,487,943)/ 58.28% 8.72%

Return on fixed asset is better than previous year equity investment. Due to better utilization of resources.

Profitability Ratios

Year Name Formula Calculations Ratios Interpretation

2007

Net Profit Margin

Net profit after tax / Net sales

7,641,468 / 233,091,512 3.28% The company has low NP margin due to heavy cost of sales

2008 13,193,010/386,479,278 3.41% Although the ratio has improved , but the cost of sales is still an issue

2009 7,898,932/382,052,131 2.07% The NP ratio has fall than previous year due to heavy cost of sales

2007

Return on assets

Net profit / total assets

7,641,468 / 292,497,874 2.61% Return on total asset shows proper and effective utilization of resources

2008 13,193,010/409,344,452 3.22% Return on total asset has improved with compare to year 2007.

2009 7,898,932/460,212,611 1.72% Return on total asset has fall

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with compare to year 2008 & 2007.

2007

DuPont Return on Assets

(Net income / net sales)*(sales / total assets

(7,641,468 / 233,091,512) * (233,091,512/292,497,874) 0.0708

It measures how many pounds were generated in sales for each single pound invested in asset.

2008 (13,193,010/386,479,278)* (386,479,278/409,344,452) 0.0322 The ratio has been decreased

than year 2007.

2009 (7,898,932/382,052,131)* (382,052,131/460,212,611) 0.0172

The ratio has been more decreased than year 2008 & 2007.

2007

Operating Income Margin

operating income / net sale

27,738,349 / 233,091,512 11.90% This ratio is widely used to evaluate a company's Operational efficiency.

2008 40,966,280/386,479,278 10.60% The ratio has been decreased than year 2007.

2009 39,336,659/382,052,131 10.30% The ratio has been slightly decreased than year 2008.

2007

Operating Assets Turnover

assets used to create revenue / total assets

255,069/292,497,874 0.0008 This ratio shows the increment in the utilization of operating assets.

2008 6,643,275/409,344,452 0.0162 The ratio has been improved than 2007, which shows operating effectiveness.

2009 1,145,605 /460,212,611 0.0025 The ratio has been fall in 2009 compared to year 2008.

2007

Return on Operating Assets

Net profit / Operating asset

7,641,468/ 80,549,560 0.094

It measures efficiency and evaluates that how effectively company utilizes its assets to generate return on them.

2008 13,193,010/

145,039,055

0.091

Company efficiently has slightly fallen for utilized its assets with compare to 2007.

2009 7,898,932/

155,487,943

0.051

Company The efficiency of utilization of company’s assets have fall then 2008.

2007

Sales to Fixed Assets

Sales / total fixed assets

233,091,512 / 292,497,874 0.80 Time

This shows how the company has utilized its fixed assets to generate sales

2008 386,479,278/145,039,055 2.66 Times

The company has more efficiently utilized its fixed assets to generate sales during this year

2009 382,052,131/155,487,943 2.45 Times

The company has more efficiently utilized its fixed assets to generate sales during

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this year but a slightly fall than 2008.

2007

Return on Investment

Net profit before tax / net worth

9,848,249/ 62678546 0.1571 This shows, how effectively the company has used the amount, invested in it.

2008 17,034,598/

76,135,402

0.224

ROI has been increased than the year 2007.

2009 11,587,270/

84,271,795

0.137

ROI has been fallen than the year 2008.

2007

Return on Total Equity

Net Income / Owner’s Equity

9,848,249/ 62,678,546 15.71%

It determines the rate of return on the invested capital. It is used to compare investment in the company against other investment opportunities.

2008 13,193,010/76,135,402 17.32% ROE has improved significantly by 1.61%%

2009 7,898,932/84,271,795 9.37% ROE has decreased compared to year 2008

2007

Gross Profit Margin

Gross profit / Sales

46,405,171 / 233,091,512 19.9%

Gross profit margin indicates how well the company can generate a return at the gross profit level.

2008 72,995,301/386,479,278 18.89% There has been a mere decrease in this year than 2007.

2009 75,258,973/382,052,131 19.70% There has been a slight improvement in this year compared to year 2008

Activity Ratios

Year Name Formula Calculations Ratios Interpretation

2007

Accounts Receivable Turnover

net sales/average account receivables

233,091,512 / 18,219,244 12.79

It defines number of times account receivables collected or converted to cash during the year.

2008 386,479,278 / 37,042,224 10.43

The ratio has declined during this year, due to long credit period offered

2009 382,052,131 / 49,117,511

7.78

The ratio has declined by 2.65 during this year compared to previous year 2008, due to long credit period offered

2007 Average collection period

365 / Accounts Receivable Turnover

365/12.79 29 days

It makes known to us that how much time will it take to collect all the accounts receivables.

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2008 365/ 10.43 35 days

Collection period has increase than 2007 and shows softness in credit policy

2009 365 / 7.78 47 days

Collection period has more increase than 2008 and shows softness in credit policy

2007

Accounts payable turnover

Total purchases/average

creditors

118,606,478/ 99,994,035

1.19 times

It shows how many times in accounting period the company repays its accounts payable to creditors

2008 263,724,054 / 116,824,596

2.26 times

This has also improved, allowing better relations with suppliers

2009 270,802,521 / 142,912,294

1.90 times

This has slightly decrease with compared to year 2008.

2007

Average payment period

365/ Accounts payable turnover

365/1.19 307 days

It represents the number of days in which Payments are made to Creditors

2008 365/2.26 162 days

This year the payment period have been improved than 2007 & allowed better working capital management

2009 365/1.90

192 days

This year the payment period have been slightly increased than 2008.

2007

Inventory Turnover

Cost of sales / Average inventory

186,686,341/ 118,790,418

1.57 times

Higher Inventory turnover ratio shows that the company is selling its inventory very quickly.

2008 313,483,977 / 149,911,476

2.09 times

This means the company is storing inventory for a shorter period

2009 306,793,158 / 172,976,164

1.77 times

This means the company is storing inventory for a shorter period

2007

Average age of Inventory

365 / Inventory Turnover ratio

365/1.57 232 days

This shows in how many days the company sells its inventory.

2008 365/2.09 175 days

The period of selling inventory have been improved in 2008 than 2007.

2009 365/1.77 206 days

The period of selling inventory have been slightly increased in 2009 than 2008.

2007 Total Asset Turnover

Total Sales/ Total Assets

233,091,512/ 292,497,874 80% It shows return on utilization

of total assets.

2008 386,479,278 /

409,344,452

94% utilization of available resources from previous period is increased by 14%

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2009 382,052,131 /

460,212,611 83%

utilization of available resources from previous period is decreased by 11 %

2007

Fixed assets Turnover

Sales revenue / fixed assets

233,091,512/ 80,549,560

2.89 times

Better utilization of fixed assets shows operating and marketing strategy efficiency

2008 386,479,278 / 145,039,055

2.66 times

Better utilization of fixed assets from previous year shows operating and marketing strategy efficiency

2009 382,052,131 / 155,487,943

2.46 times

Better utilization of fixed assets from previous year shows operating and marketing strategy efficiency

Market Ratios

Year Name Formula Calculations Ratios Interpretation 2007

Dividend Per Share

Image Garments is not a listed company so we can not calculate this Ratio. 2008

2009

2007

Earning per Share

Net profit / number of

shares

7,641,468/287,000 26.63 Increase in earnings is due to proper utilization of owner’s equity.

2008 13,193,010 /497,000 26.54 The ratio for year 2008 is almost same as 2007.

2009 7,898,932 / 497,000 15.90

The ratio has been decrease in this year with compared to previous year.

2007 Price /

Earnings ratio

Image Garments is not a listed company so we can not calculate this Ratio.

2008

2009

2007 Percentage of Earnings Retained

Image Garments is not a listed company so we can not calculate this Ratio. 2008

2009

2007 Dividend Payout

Image Garments is not a listed company so we can not calculate this Ratio. 2008

2009

2007

Dividend yield Image Garments is not a listed company so we can not calculate this Ratio. 2008

2009

2007

Book value per share

Shares holders equity/ average

no of shares

62,678,546/287,000 218.40 Increase in earnings enhances the shareholders trust on operations.

2008 76,135,402 / 497,000 153.19

The ratio has been decrease in this year with compared to previous year.

2009 84,271,795 / 497,000 169.56

The ratio has been increase in this year with compared to previous year.

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Cash Flow Ratios

Year Name Formula Calculations Ratios Interpretation

2007 Operating

Cash Flow/Current Maturities of Long Term Debt and Current

Notes Payable

Operating Cash Flow/Current

Maturities of Long Term Debt and Current

Notes Payable

18,272,970/ 106,191,825

0.172

This ratio is used to determine that how well traditional cash flow covers the company's debt principal payments due in the next 12 months. It also indicates if the company's cash flow can support additional debt

2008 26,486,619 / 134,736,740

0.197

In this year the operating cash flow has been decreased with compare to liabilities to be paid in next 12 months.

2009 9,752,094 / 153,712,332

0.063

In this year the operating cash flow has been decreased with compare to liabilities to be paid in next 12 months.

2007

Operating Cash Flow/ Total Debt

Operating Cash Flow/ Total Debt

18,272,970/ 18,219,244

1.00

This ratio provides an indication of a company's ability to cover total debt with its yearly cash flow from operations

2008 26,486,619 / 37,042,224

0.715 In this year the operating cash flow has been decreased with compare to total debts

2009 9,752,094 / 49,117,511

0.199 In this year the operating cash flow has been decreased with compare to total debts

2007

Operating Cash Flow per Share

Operating Cash Flow/ Total Shares

18,272,970/ 287,000

63.67 This ratio is a useful measure for the strength of a firm and the sustainability of its business model.

2008 26,486,619 / 497,000

53.293 In this year the operating cash flow has been decreased with compare to total shares

2009 9,752,094 / 497,000

19.622 In this year the operating cash flow has been decreased with compare to total shares

2007 Operating Cash flow/

Cash Dividends

Operating Cash Flow/ Cash Dividends

N/A N/A -

2008 N/A N/A -

2008 N/A N/A -

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ii. Horizontal Analysis

Image Garments Pvt. Ltd.

Horizontal Analysis

Balance sheet as on June 2007, 2008 and 2009

Particulars

(Base Year) (2009-Base

year)

((2008-Base year)

ASSETS 2009 2008 2007 Difference % Difference %

Long Term Assets

Operating Assets 155,487,943 145,039,055 80,549,560 74,938,383 93.03% 64,489,495 80.06%

Long term Advances 2,879,900 2,348,700 8,395,100 (5,515,200) (65.70%) (6,046,400) (72.02%)

Long term Deposits 1,107,793 823,393 1,112,043 (4,250) (0.38%) (288,650) (25.96%)

Current Assets

Stock In Trade 188,670,923 157,281,404 142,541,548 46,129,375 32.36% 14,739,856

10.34%

Trade Debts 49,117,511 37,042,224 18,219,244 30,898,267 169.59% 18,822,980 103.31%

Loans & advances 29,663,172 27,922,296 13,696,543 15,966,629 116.57% 15,268,889 111.48%

Other receivables 4,686,733 3,247,824 15,420,612 (10,733,879) (69.61%) 2,188,379 14.19%

Tax refunds due from Government

10,046,707 15,404,303 - - - - -

Cash and bank balances 18,551,929 20,235,253 12,563,224 5,988,705 47.67% 7,672,029 61.07%

Liabilities

Issued, Subscribed & Paid Up Capital

49,700,000 49,700,000 28,700,000 21,000,000 73.17% 21,000,000 73.17%

Unappropriated profit 34,571,795 26,435,402 33,978,546 593,249 1.75% (7,543,144) (22.20%)

Revaluation Surplus of Operating Fixed Assets

64,573,073 64,810,534 13,364,212 51,208,861 383.18% 51,446,322 384.96%

Long Term Liabilities

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Liabilities against assets subject to finance lease

4,969,316 5,022,380 3,127,805 1,841,511 58.88%

1,894,575 60.57%

Due to directors 0 3,460,742 3,455,892 (3,455,892) (100%) 4,850 0.14%

Staff retirement benefit 6,807,057 5,425,365 4,353,984 2,453,073 56.34%

1,071,381 24.61%

Current Liabilities

Trade & other payables 152,169,431 133,655,156 99,994,035 52,175,396 52.18% 33,661,121 33.66%

Markup / interest payable 3,216,787 1,238,394 824,477 2,392,310 290.16% 413,917 50.20%

Short term borrowings 142,662,252 118,514,895 95,169,800 47,492,452 49.90% 23,345,095 24.53%

Current portion of finance lease

1,542,901 1,081,584 6,197,790 (4,654,889) (75.11%) (5,116,206) (82.55%)

iii. Vertical Analysis

Image Garments Pvt. Ltd.

Vertical Analysis

Balance sheet as on June 30, 2007,2008 and 2009

Particulars Years In Percentage (%)

ASSETS 2009 2008 2007 2009 2008 2007

Long Term Assets

Operating Assets 155,487,943 145,039,055

80,549,560

33.79% 35.43% 27.54%

LONG TERM ADVANCE 2,879,900 2,348,700 8,395,100 0.63% 0.57% 2.87%

LONG TERM DEPOSITS 1,107,793 823,393 1,112,043 0.24% 0.20% 0.38%

Current Assets

Stock In Trade 188,670,923 157,281,404 142,541,548 41.00% 38.42% 48.73%

Trade Debts 49,117,511 37,042,224 18,219,244 10.67% 9.05% 6.23%

Loans & advances 29,663,172 27,922,296 13,696,543 6.45% 6.82% 4.68%

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Other receivables 4,686,733 3,247,824 15,420,612 1.02% 0.79% 5.27%

Tax refunds due from Government 10,046,707 15,404,303 - 2.18% 3.76% -

Cash And Bank Balances 18,551,929 20,235,253 12,563,224 4.03% 4.94% 4.30%

Liabilities

Issued, Subscribed & Paid Up Capital 4,969,316 5,022,380 28,700,000 10.80% 12.14% 9.81%

Unappropriated profit 34,571,795 3,460,742 33,978,546 7.51% 6.46% 11.62%

Revaluation Surplus of Operating Fixed Assets 6,807,057 5,425,365 13,364,212 14.03% 15.83% 4.57%

Long Term Liabilities

Liabilities against assets subject to finance lease 4,969,316 5,022,380 3,127,805 1.08% 1.23% 1.07%

Due to directors 0 3,460,742 3,455,892 0.00% 0.85% 1.18%

Staff retirement benefit 6,807,057 5,425,365 4,353,984 1.48% 1.33% 1.49%

Current Liabilities

Trade & other payables 152,169,431 133,655,156 99,994,035 33.07% 32.65% 34.19%

Markup / interest payable 3,216,787 1,238,394 824,477 0.70% 0.30% 0.28%

Short term borrowings 142,662,252 118,514,895 95,169,800 31.00% 28.95% 32.54%

Current portion of finance lease 1,542,901 1,081,584 6,197,790 0.34% 0.26% 2.12%

iv. Industrial Analysis (Competitors):

Name of Companies

Years Gross Profit Ratio

Current

Ratio

Net

Profit Margin

ratio

Working Capital

Acid Test Ratio

Debt Ratio

Image Garments

2009 18.89% 1.260 3.41% 6,643,275 40.8% 9.049%

2008 19.70% 1.003 2.07% 1,145,605 37.4% 10.67%

Umer 2009 10.91% 1.326 2.41% 2,125,412 25.5% 8.12%

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Apparels 2008 12.25% 1.121 3.12% 3,145,415 32.15% 6.14%

Masood Textile Mills

2009 21.25% 1.12 4.21% 10,165,450 30.5% 4.85%

2008 22.54% 1.101 3.32% 11,344,550 28.15% 5.40%

Jaguar group

2009 16.12% 1.14% 2.21% 5,153,125 10.5% 13.20%

2008 13.34% 1.014% 1.45% 4,452,532 25.32% 11.23%

v. Trend Analysis

Liquidity Ratios

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2007 2008 2009

Current ratio

Acid Test ratio

Leverage Ratios

0

0.5

1

1.5

2

2.5

3

3.5

4

2007 2008 2009

Debt/Equity ratio

Debt to Tengible Net Worth

Current Worth/Net worth

Fixed Asset ratio / Equity ratio

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Profitability Ratios

0

0.5

1

1.5

2

2.5

3

2007 2008 2009

Net Profit Margin

Return on assets

Operating Income Margin

Return on Operating Assets

Sales to Fixed Assets

Return on Investment

Return on Total Equity

Gross Profit Margin

Activity Ratio

0

2

4

6

8

10

12

14

2007 2008 2009

Accounts Receivable Turnover

Accounts payable turnover

Inventory Turnover

Fixed assets Turnover

0

50

100

150

200

250

300

350

2007 2008 2009

Average collection period

Average payment period

Average age of inventory

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b. Future Prospectus

The future prospectus of the entity is so bright. The entity is growing rapidly and

developing the integrated system which helps in planning called (ERP). If we see the

growth rate of the entity is increasing day by day. The turnover of the entity as compared

to the base year is high and its orders are more than their capacity. There three types of

ratios to check the future prospectus of the entity current asset ratio, Gross Profit Ratio,

Working capital. All these represent an increasing trend. The ability of the company to

pay off its debts is also good. All calculated ratios are favorable which shows the strength

of the entity and confirms its going concern.

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SWOT ANALYSIS OF ORGANIZATION SWOT analysis is the method that helps manager to identify the strength, weaknesses,

opportunities and threats of the organization. Companies annually conduct the SWOT

analysis to know about prevailing internal and external situations of the organization. In

this analysis self considerations of the company and the outer situations of the market are

deeply check.

Image Garments also conducts this comprehensive analysis annually for the betterment of

organizational growth and market share. SWOT analysis plays a credible role to reveal

those factors that affect the organization openly and indirectly.

According to my point of view, the SWOT analysis of Image Garments is as follows;

Strengths

• Modern Textile machinery and equipments.

• Acquisition of ISO 8000-2001 and 14001-2400 certificate.

• Equipped with WRAP certification.

• Product innovation activities.

• Strong Integrated Information System (ERP Oracle E-Business Suite 11i)

• Good Competitive skills.

• Complete back track facility.

Weakness

• Centralized managerial decision making

• High cost of production

• High wastage cost

• Small international market share.

Opportunities

• Entering new markets

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• Addition of new product line

• Faster market growth

• Acquiring the benefit of free trade

Threats

• Entry of new textile competitors

• Adverse Govt Policies.

• Easy excess of buyers in the world market

• Economy is not up to the market

• Political instability and lack trust of investors

• Uncertain and risky business environment

• Difficult upcoming challenges of free trade

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CONCLUSION In a time frame of 7 weeks in IMAGE GARMENTS, I came across the number of tasks

and felt a credible and professional change in my attitude. I skeptically conclude that

IMAGE GARMENTS is one of the leading knit outerwear manufacture and exporter in

Pakistan. The system, the management style, the policies & decentralized decision

making environment is really remarkable.

It produces quality products and achieving big market share with reputation in the foreign

market. I also conclude that IMAGE GARMENTS has some weaknesses and threat,

which it should have to counter for in future.

The overall analysis is indicating that the company’s progress has mainly attained

through dedication of employees. The effectiveness of its management, their willingness

to take advantage of opportunities and face challenges of changing economic picture, this

all contributes to the very much improved and sound position of company. This is really

appreciable for the devotion and hard work of all the employees of the company.

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RECOMMENDATIONS FOR IMPROVEMENT The Image Garments (Pvt) Ltd is losing its benefits in lower raw material prices, while

energy cost and credit cost have increased considerably. There is a need to check the

trend of further increases both by policy, support by the Government and itself. The

major challenges are to enhance the competitiveness of the entity, which have been

created on account of internal weaknesses to improve quality production efficiency at be

desired levels.

The suggestions that particularly relate to the Image Garments are as followings;

• Allocating a specific budget should enhance the promotional activities of Image

Garments.

• The company should control the financial charges especially commission to the

agents should be controlled.

• The cost of production of company should be controlled. The utilizing the plant

capacity in full can reduce fixed cost.

• The sale of company should increase by searching new markets.

• New product lines in fashion design and style should be launched.

• Political stability consistent Government policy and Government that remains for

its tenure.

• Lowering of energy costs to allow the industry to become more competitive.

• To create an environment that attracts and supports foreign investments including

joint venture.

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REFERENCE & SOURCES USED • Managers of relevant Departments.

• My Internship Supervisor [Mr. Sajjad Hussain (Manager Accounts)]

• System Files & Standard Operating Procedures of each department.

• Financial Statements of Image Garments (Pvt) Ltd.

• Image Garments website: www.imagegarments.com

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ANNEXES Financial Statements (2009-2008)

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Financial Statements (2008-2007)

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