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THE ORGANIZATION CONCERNED

Shahzad Textile Mills Limited is a textile company which is of their concern

that has been introduced right below. They are going to make a full-fledge

financial analysis of this textile company in order to check its financialsituation in the market. The analysis of each and every major ratio has been

involved in this financial analysis. Then furthermore the interpretation of each

and every ratio has been given to elaborate it.

An Overview

Shahzad Textile Mills Limited is a renowned textile mill locally as well as in

the foreign export markets for the impressive quality of yarn productions,

highly competitive prices and matchless professional services. With a total

installed capacity of 30,720 spindles, the company is engaged in the

productions of ring spun cotton and synthetic blended yarns since its inceptionin 1980. With the passage of time, the company continuously adopted latest and

advanced technologies to ensure the best possible quality standards and

efficient workings.

Shahzad Textile Mills Limited is comprised of two production units, built in

the heart of cotton growing belt in Pakistan at convenient locations and are

fully equipped with highly sophisticated and

most modern spinningmachinery with a capacity to produce around 50

x40FCLs per month.

Vision and mission

Vision Statement:

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They aim at seeing their mills to be a model manufacturing unit producing

high quality yam by complying with the requirements of Quality

Management

System and continuously improving its effectiveness for total customerssatisfaction. They wish to play a leading role in the spinning sector by

keeping a substantial presence in the export and local markets.

Mission StatementAction Plan:

To install state of the art machinery and to

acquire sophisticated process technology to achieve highest

quality levels in the competitive business environment.

To make strenuous efforts to enhance profitability of the company and ensuring a fair

return to the investors, shareholders and employees.

To

exercise maximum care for improvement of quality of their products by employing a team of highly skilled technicians and

professional managers/supervisors.

To strive hard to develop new markets for the sale of their

products both in export and local markets.

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To improve customer satisfaction level by adhering strictly to

quality requirements of their

customers in local and export markets and by improving

communications with customers for receiving prompt feed backs

about quality of their products.

To attend to the prompt resolution of customer complaints by

taking timely corrective & preventive measures to address the

quality complaints.

To

improve logistic facilities for their customers dispatch plan and iss

ue all shipments / delivery documents well in time.

To make comprehensive arrangements for the training of their

workers / technicians.

To promote team work, sense of transparency, creativity

in their professionals and technical people.

Products and services

The two independent productions units of the company are involved in the

productions of ring spun yarn counts for various applications with details as

follows:

Unit1: This unit presently produces their Super Unicorn brand ofpolyester/viscose blended ring spun yarn counts for weaving

and knitting applications. Here, they also have the possibilities to produce

100% polyester and 100% viscose spun yarn counts on special requirements.

Unit2: This unit produces their Dynacon brand of prime qualitypolyester/cotton blended ring spun yarn counts in various blends like PC 52:48,

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PC 65:35, CVC 60:40, CVC 70:30, etc. with Carded/Combed cotton portion to

suit weaving and knitting applications. In this unit, they have also have

facilities to provide their customers with TFO yarns from 2-ply up to 7-ply for

special applications. All the productions are guaranteed for even dyeing.

Markets:Beside serving local market requirements of yarn, they are a major exporter

from Pakistan and successfully serving a large number of high quality

conscious customers in USA, Germany, Portugal, Spain, Hong Kong, S. Korea,

Taiwan, China, Japan, Singapore, Sri Lanka, Malaysia, Phillipines, Mauritius,

Middle East, etc.

Machinery:

Machinery in use consists of Blow Room from Trutzschler (Germany), cards

from Crosrol UK (MK4), Draw/Simplex Frames from Toyota (Japan),

Combers from Rieter (Switzerland), Automatic winders with Splicers & Usterfrom Murat (Japan), and TFO Twisters from Volkmann (Germany).

Quality Control & Laboratory Equipment:The satisfaction of their customers is all important to us and the use of

technologically advanced laboratory equipment assures the highest possible

quality of yarn. They have a comprehensive periodic testing procedure in place

which monitors product quality at every stage of spinning process by frequent

sample collections and tests. The laboratory is equipped with HVI-900 with

ultra violet light for color shade check of raw cotton and grading. The yarn is

checked through the Uster Tester3 / Tensorapid and finally, each cone offinished yarn is passed through UV lights capable of detecting even the

slightest color variation.

Packing & Loading:

The finished product is packed with the utmost care by trained personnel, and

loaded directly in to containers for export purposes. All packing and loading is

done under strict supervision, while maintaining maximum quality and safety

standards. To facilitate their customers, they provide yarn packed in 100Lbs

and 50Lbs sea-worthy export cartons. They also have facility to provide

customers with polythene film shrink wrappedPallet packing to speciallyaccommodate customers in Europe/USA and help them reduce the labor

handling costs.

Business practice

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Shahzad Textile Mills Limited has laid down the following business

ethics andprinciples, the observance of which is compulsory for all

the directors / employees of the company in the conduct of companys businessin order to protect and safeguard the reputation and integrity of the

company at all levels of its operations.

Any contravention of these ethics is regarded as misconduct.The company will ensure that all the executives and subordinate staff members

are fully aware of these standards and principles.

Conflict of interest:All staff members are expected not to engage in any activity which can cause

conflict between their personal interests and companys interest, such as:

In effecting the purchases for company and selling its products

the directors and the staff members are forbidden from holding

any personal interest in any organization supplying goods orservices to the company or buying its products.

The staff members should not engage in any outside business w

hile serving the company.

Staff members are not permitted to conduct personal business in

companys premises or use companys facilities for the same.

If a staff member has direct or indirect relationship with an

outside organization dealing with the company he must disclosethe same to the management.

Confidentiality:All staff members are required not to divulge any secrets / information of the

company to any outsider even after leaving the service of the company unless it

is so required by a court of law. During the course of service in company they

should not disseminate any information relating to business secrets of the

company without the consent of management.

Kickbacks:All staff members are strictly forbidden not to accept any favors, gifts or

kick backs from any organization dealing with the company. In case if such a

favor is considered, in the interest of the company, the same should be

disclosed clearly to the management.

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Proper Books of Accounts:All funds, receipts and disbursements should be properly recorded in the books

of accounts of the company. No false or fictitious entries should be made or

misleading statement pertaining to the company or its operations should be

issued. All agreements with agents, dealers and consultants should be made in

writing supported with required evidence.

Relationship with Government officials, suppliers, agents etc. :The dealings of the company with Government officials, suppliers, buyers,

agents andconsultants of the company should always be such that the integrity

of the company and reputation is not damaged. Members having queries in

connection with how to deal with these requirements should consult the

management.

Health and Safety:

Every staff members is required to take care of his health and safely and thoseworking with him. The management is responsible for keeping its staff

members insured as per government rules and regulations.

Environment:To preserve and protect the environment all staff members are required to

operate the companys facilities and processes so as to ensure maximum safetyof the adjoining communities, and strive cont