Textile Presentation

Internship Report On Zainab Textile Mills Ltd.

PAKISTAN ‘S TEXTILE INDUSTRY

PAKISTAN TEXTILE A HISTORY

Pakistan is amongst the leading producers of cotton in the world and its Textile industry is the

backbone of its economy. It contributes more than 60% to the total export earnings, 40% to

employment, 33% to stock market capitalization and 8.5% to GDP of the country. The textile

industry holds the key to the growth and expansion of the country's cotton economy, which

continues to be the main cash crop.

At the time of independence of Pakistan only two textile mills were in existence. After

independence, the process of development of the textile industry started picking up gradually. By

mid-sixties there were about 180 units of textile bleaching, printing and processing units, mostly

situated in Karachi and a small number in the Punjab. In 1968, inconsequence of change in the

basis of collection of excise duty from capacity to production, most of the mills closed down their

weaving sections. The looms, removed from the mills, were installed outsides the mills' premises

in units of four, which has been exempted from excise duty. About 31,000 looms since 1969-70,

continued to operate in the mill sector even after general segregation of weaving. This number

decreased to only 10,000 looms by the end of June 2003. In the non-mill sector a big majority of

the units operate at very low level, having no automatic machinery.

GCUF Page 1


CURRENT STATTISTICS

Pakistan's largest industry, textile production, has seen a sharp increase in investment, as

indicated by the more than doubling of imports of textile machinery in the past three years. This

has substantially improved the prospects of the industry. The large scale manufacturing sector,

especially the textile industry, is expected to grow by 8% to 9% in the next two years. Research,

innovations and development in technical textiles, yarn quality, clothing products, process

performance, fabric finishing, coloration technology and marketing can bring significant

advancement in textile sector and market supremacy. Drastic measures through strategic

management both in public and private level can strengthen the position of Pakistan in post-2004

era of textile world. Pakistan's textile sector has made considerable advances in production

capacity and capability in the last four years. There is now a marked shift to value addition and

the share of garments and made-ups has increased from 47% to 58%. Simultaneously, the share

of yarn and fabrics in exports has fallen from 53% to 42%. Today it contributes 67% of exports,

and many product lines, such as bed linen and garments, are expanding rapidly.

At present the exact number of factories, having high-speed rotary textile printing and processing

units, is not known. However, most of the available units working on Hi-Tec machines are owned

by big industrial and commercial cartels such as Zainab Textile, Adamjees, Gul Ahmeds etc. At

present there are more than 700 independent processing units working in and around

Faisalabad, Gujranwala and Karachi, in which about 70 integrated units with complete, finishing

facilities. These integrated units have complete finishing facilities i.e. bleaching, mercerizing,

dyeing, calendaring and printing. These textile printing and processing units have been classified

into three categories i.e. A, B and C.

Category-A integrated units have complete finishing facilities i.e. bleaching mercerizing, dyeing,

calendaring and printing. These units from the power loom sector procure cloth and after

GCUF Page 2


processing they marked it under own brand names. At times, these units also provide finishing

facilities to the traders on charge basis.

Category-B units directly compete with the products of integrated units. In terms of quality, design

and color, their products are in no-way inferior to the products of integrated mills. Like the

integrated mills these units also sell their products in wholesale market.

Category-C units are those, which do not have complete finishing facilities. These are either

engaged in bleaching and dyeing. In comparison with Type-A, these units perform more work on

job order basis. Besides, they also procure cloth from the market and after processing market in

under their own brand names.

THE TEXTILE VISION 2005

The government under Textile Vision 2005

has focused more on providing credit and

other facilitative support to diversify the

products, especially to cater the needs of the

high value added sector like garment

industry. The textile industry invested

substantially in BMR for improving

production quality and moving towards more

value addition during the last four years.

There has been a substantial increase in the

capacities, production and consumption of

raw materials. The installed and effective

capacities in the weaving sector are given in

Table-1.

GCUF Page 3


The weaving and made-up sectors have three different sub-sectors in weaving viz. integrated,

independent weaving units and power loom sector. Cloth is being produced in both mill and non-

mill sectors. Production of cloth (mill-sector) increased from 795 million sq meters in 2003-04 to

986 million sq meters in 2004-2005. Pakistan fabric's range from coarse to super varieties, with

coarse and medium varieties consumed locally.

The pattern of consumption has shifted from pure

cotton to blended fabrics i.e. polyester/cotton,

polyester/viscose etc. because of their durability

and comparatively cheaper prices. Out of total

production of 986 million sq. meters cloth during

2004-05 in mill sector, 50% produced in grey form,

33% dyed and printed, 13% blended and 4%

bleached. There are a large number of vertically

integrated units, where production is controlled

from fibre to the end product, and marketed

abroad directly. Category-wise production of cloth

(mill-sector) is given in Table-2.

Export of cotton fabrics increased from 2,575 million sq meters worth US $ 5.10 billion in 2003-

2004 to 4005 million sq meters worth US $ 9.35 billion in 2004-2005, thus showing an increase of

65% in terms of value. Major markets for Pakistan's fabric are USA, Hong Kong, UK, China,

Dubai, Italy and Turkey. Export of cotton cloth is given in Table-3.

The demand for textiles in the world is around $18 trillion, which is likely to be increased by 6.5%

in 2005. China was the leading textile exporter of the world's total exports of $400 billion in 2002.

GCUF Page 4


Pakistan has emerged as one of the major cotton textile product suppliers in the world market

with share of world yarn trade about 30% and cotton fabric about 8%, having total export of $9.35

billion.

Pakistan should learn a lesson from Bangladesh, which by imports yarn and fabrics from Pakistan

and other countries. Bangladesh is not a cotton growing country but presently earns over $3.5

billion on export of value-added textile goods, particularly garments. Now, if a country having no

indigenous raw material could excel in this field then as to why Pakistan could not achieve this

goal whose total export in textiles comes to around $9 billion only.

If we desire to achieve the target of textile exports as envisaged in the textile vision 2005, we will

have to promote value-added sector in textiles.

Textile Vision-2005 has been directed towards an open, market-driven, innovative and dynamic

textile sector, which is internationally integrated, globally competitive and fully equipped to exploit

the opportunities created by the Multi-Fibre Arrangement (MFA). Pakistan, at present, holds the

8th position in textile exports in Asia. Pakistan can achieve 5th position in Asia in the textile

exports as has been targeted in the Textile Vision -2005.

During the last four years, Pakistan's textile sector is preparing itself to face the challenges of the

post-quota regime in 2005.

The Textile Board and Ministry of Commerce have geared up efforts for boosting the export

targets of textile from the present $9 billion to $14 billion as envisaged by the Textile Vision-2005,

which is quite encouraging.

For Pakistan, the competitor will not only be China, India and Vietnam but also countries whom USA has

given preferential treatment like NAFTA, CBI, AGOA, etc. The USA has signed TIFA with Pakistan but it

will not translate into preferential duties for Pakistani textiles in the near future.

The USA and the EU will on the one hand demand better market access for their textiles and also the

implementation of WTO bindings particularly in tariffs and intellectual property rights and enforce strict

rules of origin while on the other hand the buyers will make more demands for compliance.

GCUF Page 5


The opportunities for Pakistan will be quota on

China and Vietnam beyond 2005, closure of

some EU and US companies dealing in basic

textile, disadvantage to countries like Bangladesh

and Sri Lanka who thrived due to quota regime

and finally, the biggest advantage to Pakistan will

be its vertically integrated cotton textile industry.

Pakistan has made some progress in facing post-

quota era to take the production of textile goods

upwards. There was a great possibility that

Pakistan would gain and capture more markets in

the quota-free era as it was producing high

quality textile products and ensured prompt

supply owing to indigenous raw cotton.

Encouragingly however, textile exports continued to perform well in the current fiscal year with

16.1 percent rise as against a modest 5.7 percent growth in the previous year. It is interesting to

note that this growth has been achieved despite rising financial cost, high energy prices, higher

prices of cotton relative to FY05, a fall in exports prices amidst intense competition, loss of

preferential access and disturbances in gas supply.

This raises hopes that with higher cotton output, increase in investment (both foreign as well as

domestic investment), sufficient credit availability and expansion in capacity utilization, the

performance of the sector will improve in the coming year. However, competition pressures

remain strong, as evident in the deceleration in growth of exports in recent months.

GCUF Page 6


Incentives to the industry

Government of Pakistan has taken various initiatives/steps to boost the textile sector and to

make it compatible with the other global competitors in the end of quota regime. Establishment

of Federal Textile Board to take decisions for the development of textile industry.

Establishment of Federal Textile Board to take decisions evolving strategy for the

development of textile industry.

Campaign launched for the production of contamination free cotton & subsequent

promulgation of amendment in Cotton Control Act 1966.

Policy support in shifting towards value addition.

Establishment of Textile City at Karachi and Garment Cities at Karachi, Lahore &

Faisalabad.

Gradual reduction of import duty on textile machinery and parts to 5% ad valorem except

spinning rings on which it is 10%.

Sales tax on the import and local supply of major inputs/raw materials utilized in the

entire manufacturing regime of textile Industry, have been zero rated.

Import duty on raw material, sub-components and components used in the local

manufacturing of textile plants and machinery for export sector, has been reduced to zero%

(SOR565(1)/2005).

Import duty on ginning presses has been reduced to 5%.

GCUF Page 7


Turn over tax has been reduced to 1% on retailers of specified textile fabrics and articles of

apparel including readymade garments or fashion wear. The 15% Sales Tax levied earlier on

retailers has been reduced to 2%. Both these taxes will be their final tax liability.

GCUF Page 8


Custom Duty, sales tax and withholding income tax on raw materials for the manufacture of textile

has been zero rated at the import stage to do away with the duty drawback / refund claims

under the revised and simplified DTRE Scheme.

6% compensation on garments exports for R&D.

GCUF Page 9

Textile Package

The Federal Textile Board (FTB) in its meeting held on 27th April, 2006 constituted a special

committee to recommend measures for Reducing the Cost of Doing Business in Textiles. The

committee submitted its report, which was discussed with the Prime Minster on 30th May and

29th June, 2006. The ECC of the Cabinet in its meeting held on 15th July, 2006 approved a

textile package to give boost to the Textile Industry which has the following salient features:

State bank of Pakistan will provide long-term financing for export oriented projects at

reduced mark up of 7% and 6% for 7 year and 3year period respectively. It has also simplified

the procedure.

The re-financing rate has been reduced to 7.5% from 9%.

R&D support @ 6% shall be continued to be given to Ready Made Garments and

Knitwear

exports. In addition, R&D support will also be available for exports of the following:-

a) Dyed/Printed Fabrics and white-Home Textiles @ 3%

b) Dyed/Printed Home Textiles @ 5%

A Committee is being formed to consider zero duty on import of weaving machines and

spare parts.

A Committee is being formed to examine actual zero rating of all textiles & clothing

exports.


Amendments in labour laws & factories act to make them ILO & ATC compliant

Levying of cess @ Rs.10/- per bale of cotton by the PCSI for development of

standardized and classified cotton.

INTRODUCTION TO ZAINAB TEXTILE CORPORATION

ZAINAB TEXTILE CORPORATION is the prominent manufacturer and leading exporter of textile

goods in Pakistan. They are in the export and textile industry since 1983. Their business cycle

starts from Weaving and ends at finished products. They are exporting top quality products

throughout the world. Their wheel runs round the clock. They are enriched with ingredients of

latest technology, modern methods of production and assiduous humane elements. They believe

in quality and customer’s satisfaction, which is the spirit of their business. That’s why by the grace

of Almighty Allah their business volume is increasing with every passing day. This shows that

what they committed, they did it.

ZAINAB TEXTILE CORPORATION proud of its achievements, which comprises the following,

companies.

1. ZAINAB TEXTILE CORPORATION.

2. MAG TEXTILE CORPORATION

3. FAISAL EXPORT (PVT) LTD.

4. ABDULLAH SIZING (PVT) LTD

ZAINAB TEXTILE CORPORATION

GCUF Page 10


Status of the company A public Limited Company

Project Weaving Unit

Total Land 18 Acer

Date of Establishment 15-02-1983

Authorized Capital 30.000 million

Paid up Capital 10.000 million

Mills Samundari Road

Faisalabad.

ZAINAB TEXTILE CORPORATION is a weaving unit equipped with shuttles looms of

“SULZER”, double sizing machine and complete humidification plant. The Mills has capacity to

weave up to width of 153 inch of superior quality cloth. They are producing different qualities of

100% cotton as well as polyester/Cotton. They have a complete section for inspection of weaved

cloth. They produce quality fabrics up to international market standards and have experienced

inspection team. They export whole of their production. They are increasing their weaving

capacity by installing a new set of “SULZER” loom.

Group performance

Playing a vital role is the private sector, ZAINAB TEXTILE CORPORATION is one of the leading

exporters of Textile Goods in Pakistan.

Their centralized management structure helps in making accurate and efficient decisions,

which is vital to remain competitive in the business world. Their team is proud of its achievements

and they work together to maintain high standards of quality and service. As a responsible

corporate citizen, they continuously strive for beneficial partnerships with the communities in

which they operate.

GCUF Page 11


AWARDS TO GROUP

The Federation of Pakistan Chambers of Commerce has given a Special Merit Trophy

1999-2000 to ZAINAB TEXTILE The export of Cotton Grey Cloth.

A valued Patron Trophy has been given to ZAINAB TEXTILE for the year 2002 by

IBRAHIM FIBERS LIMITED.

United Registrar of the System Limited has awarded a certificate to ZAINAB TEXTILE in

recognition of the Organization’s Quality System which complies with ISO, 9001-2000.

COMPANY INFORMATIONS

Financial Year:

The financial of the company starts from 1st of July, and ends on 30th June of next year.

CHIEF EXECUTIVE OFFICER:

1- Mr. Abdul Majeed Memon

THE CHAIRMAN

1- Mr. Ghulam Hussain Memon

BOARD OF DIRECTORS:

1- Mr. Waqas Hussain Memon

2- Mr. Zohaib Hussain

3- Mr. Faisal Majeed

4- Mr. Zeeshan Majeed

COMAPANY SECRETARY/

CHIEF FINANCIAL OFFICER:

1- AW khatri

GCUF Page 12


AUDITORS:

M. Yousuf Adil Saleem & Co.

Chartered Accountants

BANKERS:

National Bank of Pakistan

Allied Bank of Pakistan Limited

Faysal Bank Limited

United Bank Limited

Habib Bank Limited

MISSION OF THE COMPANY

1. Acquiring the quality raw material.

2. Proper Planning and supervision of production process.

3. Effective quality control at every process stage.

4. To produce the superior quality of grey cloth.

5. To face competition in the International and local market.

6. To continuously care for the need of Customers, Suppliers, Shareholders and Community

in which we live.

7. Timely Deliveries.

8. Customers satisfaction.

9. Customers Feedback.

10.Employee Training.

BUILDING

Main Factory Building.

Labour and Staff Quarters.

GCUF Page 13


Mechanical workshop.

Store Rooms.

Canteen.

Office Blocks.

Grey Godowns.

ADMINISTRATION DEPARTMENT

This is very important department of the organization as the name shows this department has to

administer all the operations of the organization. Sections of this department are divided into

offices as follow:

Labour Office

Security Office

Gate Office

Time Office

SOCIAL SECURITY BENEFIT:

According to social security rules all the factories are bound to contribute @ 7% to the

social dispensaries for handling the medical aid to the workers. The social security department

has opened different dispensaries in factories and at district and divisional level social security

benefit is provide to the workers whose salary is less than Rs. 4000/-. This facility is not provided

to employees with salary more than Rs. 4000/-.

GCUF Page 14


EMPLOYEE’S OLD AGE BENEFIT:

According to Employee’s Old Age rules all the factories are bound to contribute @ 5% to

the Old Age Institution.

GRATUITY TO WORKERS:

According to labour law when permanent employee leaves the service and his service

period is one year. He is entitled to get gratuity equal to 30 days salary another six months

besides one year he will also get one year salary.

ACCOUNTS DEPARTMENT

FUNCTIONS:

The main function of Accounts Department is to keep proper record of transaction and

maintain the Accounts.

PROCEDURE:

Firstly the Accounts Department makes the record of transaction by different type of vouchers

according to the nature of transaction. The vouchers provide the evidence of transaction. As

books of ZAINAB TEXTILE are computerized the ledgers are being prepared in computer, so

GCUF Page 15


vouchers are sent to Computer Operator for posting. Here a daily printout of all entries checked in

order to verify the accuracy and then posting is made to the respective ledger.

Various Reports are prepared and presented to top management for analysis.

Trial Balance is prepared at the end of each month.

Bank Reconciliation statement is also prepared at the end of each month.

Stock is done and production account is prepared at the end of each month.

To minimize the error or omission risk, record is also maintained manually. At the end of

each month manual and computer record are compared to remove error or omission.

Marketing Department

Quality Control

A lab is operated round the clock to control quality. It is considered as brain and the eyes of our process, and is equipped with state-of the art testing and dyeing equipment. To have better control, lab activities are divided into four department:

1. Raw materials quality control2. In-process quality control3. Finished product quality assurance4. Research and development

By means of colors matching instruments, the laboratory also formulate recipes for the dye house in accordance with the customers’ requirements and work out finishing procedures.Zainab Textiles maintains the quality system of inspection and testing of the materials at receipt and during all stages of production, dispatch of finished products and ensures that the product confirms specified requirements. Our inspection and testing procedure is established to formalize process of inspection and testing for the raw material, in process and finished goods for quality assurance. Inspection and testing in lab ensures that incoming products are not used or processed until these have been inspected or otherwise verified as conforming to client’s requirements. No products are dispatched until all the activities specified in the quality plan and/or

GCUF Page 16


documented procedures have been satisfactorily completed. The company has established and maintained records, which provide the evidence that the products have been inspected and/or tested. We strive to improve our Quality Management System on a continuous basis through continuous internal quality audits, training to our employees, continuous quality council meetings and latest inspection and testing techniques etc. All the matters related to quality assurance are discussed and reviewed by the top management in the quality council meetings.

ISO 9000 Certification

We feel pleasure that by the grace of almighty Allah Zainab Textile Ltd has received certification under international standard ISO 9001-(Quality Assurance in design, development, production, installation & servicing ) in February 2000 from world recognized certification agency AFAQ ASCERT International(DAR, COFRAC & RVC).Our scope of certification covers Designing, Processing, Export and Sales of Finished Fabrics and Made Ups. Our registration number is N0 QUAL/2000/13759. Internationally recognized, AFAQ certification is granted only after rigorous analysis of the company quality system, in conformity with the ISO 9000 international standard. Consequently, Zainab Textiles Ltd, with AFAQ certification, is one of those companies recognized as being the highest performers, those whom customers have most confidence in. This certification is a milestone in our journey towards quality excellence and demonstrates the competence and commitment of our staff in a process guaranteeing complete satisfaction for our customers.

Export Department

Export department plays a vital role in any organization. Zainab export department is headed by the export manager. The export manager supervises all the marketing and export activities. Export manager is also responsible for the exploration of local and foreign markets. He is also making efforts for the development and the progress of the company.

Objectives

• To increase the export of the Grey Fabric and Yarn.

• To maximize the company profit by increasing exports.

GCUF Page 17


• Exploration of the new markets.

• Market research making the better information system.

• Adopting the new technological a development changes in the field of textile.

• To build the image a credibility of the organization.

• To earn foreign exchange for the progress of the economy of the country.

Functions

Following are the main functions of the export department.

• Export department is responsible for the production planning and the production follow-up with the mill.

• Customer correspondence as well.

• Export department also follow-up the local sale and purchase of the yarn and the

Gray fabric.

• The important function of the export department is to make shipment schedule and the planning.

• Visiting to the existing and new customer.

• Providing timely information about the production of the products to the customers which is also providing a service to its customers and promoting the company image.

• Improving the quality of the products with a collaboration with the buyer and the production department.

• Bank documents preparation and the follow-up.

GCUF Page 18


• Preparing the custom documents.

• Dealing with the agents and providing timely information to the parties.

• B/L follow-up with the shipping lines.

• Export updating system is also the responsibility of department.

• Preparing the quality analysis report and sending them to higher authorities.

• Maintaining the complete sale and purchase records.

• Export department is helping in improving the quality and betterment of the products and the company.

• Providing timely information to the clients is the main service provided by the Zainab Textile Ltd export department.

Export Documentation

Export procedure is a very lengthy process. It involves a number of documents required by the importer from the exporter. Zainab Textile Ltd export department carefully handle all the steps involve in it. Because a little bit of mistake can cause a great loss to the exporter and the importer.

• Indent• Sales Contract• Letter of Credit• Custom Documents• Packing List• Bill of Lading• Bill of Exchange• Certificate of Origin• Inspection Certificate• Form E• Form M• Shipping Bill

Description of Export Documentation

Indent

GCUF Page 19


Indent is the first export document which is send by the agents to export department. After the careful analysis of all the terms and conditions such as the quality description the selvedge, shipment date, piece length, piece per unit, the packing and payments terms. It also contains the buyer name and the reference number of buyer or agent.

Sales Contract

The export department after the careful analysis of indent issues the sales contract. As they have the products and condition of the indent, such as the quality, packing, payment terms, commission, shipment date and the price of the product. Issuing sales contract is the confirming the sale of the products to the buyer on the specified price. If there is changing made by the buyer or agent, so the later revised sales contract is issued by the export department. In which they can revised any thing, the shipment schedule, the price and the product specification. Export department handle carefully the steps of that procedure. Also the contract copies are sent to the agent, the buyer, the accounts and the audit department of the BT for their record purpose.

Letter of Credit

Letter of credit is very important documents in the whole export procedure. Because without this the process could not be complete. L/C is a written instruction issued by buyer’s bank, authorizing the export to draw in accordance with the terms and stimulate legal forms that bill will be honored.In the L/C all the term and the conditions are given by the buyer. What documents he needs. In the L/C there are important things mentioned there.• The buyer name is there in the L/C.• The bank of the importer is also mentioned.• The importer name and address is also given.• L/C number is mentioned on the top or the L/C.• Issuing date of the L/C, the expiry date of the L/C, the amount of L/C, the quantity of the products.• The complete description of the products and the rate.• The shipment date is also mentioned.• The port is given there in L/C.• The shipping line is given, so the exporter only sent the goods on that specific shipping line. • L/C terms are given, either it is 120 days, 90 days or sight from B/L date.• On the L/C the rate per unit and the shipment schedule is given on what date the products would be shipped in what quantity.• Trans shipment or the partial shipment allowed or not is also there in the L/C.• All the documents such as the invoice, the packing list, the certificate of origin and other inspection certificate are also mentioned as required by the importer.

GCUF Page 20


Custom Documents

The custom documents are very important because it provide the evidence that goods have been transported and it enables the importer to receive the goods from the custom authorities. As the order placed by the importer is ready on the due date, the export department issues the dispatch order to the mill. That the following quality should be dispatched on the containers specified on this L/C. The goods are loaded on the specified containers and they are sent to the Karachi port on the specified line.BT mostly does its shipment through the shipping companies. The shipping lines charge their freight and other charges are paid the agents as well as for clearance of the goods from the port. The agents handover the documents which involve packing list and invoices to the shipping lines. As the trailer number, the container number E form number, quality and the quantity is completely mentioned on this invoices.

Mode Document Carrier

By sea Bill of lading Shipping lines

By Rail Receipt Railway service

By Road Road way bill Transporter

By Air Air way bill Air lines

Packing List

Packing list is a document which involves all the complete list of the goods packed in the particular shipment. It is very important document. It provides a convenience to the shipping and the clearance authorities.

Features of packing list

• It usually shows the marks a number mentioned on the packages.• It shows the weight also.• Each package is marked by a number.• It shows the contents of each package, what is nature, quality and quantity of the package.• It provides a linkage with the other documents to reference to the invoice number, date, letter of credit number, date and vessel name.

Bill of Lading

Bill of lading is one of the most important documents in the whole export documents. Because

GCUF Page 21


without this the importer cannot receive their goods from the destination port.BT first of all draft the bill of lading and that is sent to the shipping line. Bill of lading also contains the specifications related to the importer and the exporter. The name of the exporter, place, the importer, the bank, the quantity is mentioned, the quality is mentioned, the quality with all specifications required by that, the total value of the goods which are exported. The date of the bill of lading is mentioned. The shipping line and vessel name is given on B/L. Bill of lading is a comprehensive documents that is issued by the shipping line. The date of shipment is also mentioned on that. Without this the importer can’t clear the goods from the destination. BT export department also very quick in follow up of the B/L because they have to transfer the information to the parties.

Bill of Exchange

It is unconditional order in writing, addressed by a person to another, signed by person giving it, requiring the person to when it is addressed to pay on demand or at a fixed determinable future date. When the L/C is opened the B/E must be strictly drawn according to the terms and conditions of the creditor may be drown on the request of the applicant or on the bank request through which the credit is opened. B/E is also a important document of export.

Certificate of Origin

Certificate of origin shows that the good which are being exported are originate from a country form which importer is allowed. These are required by the authorities in the importing countries. In order to satisfy and support a claim for the import duty.The certificate of origin may also be made by the consultants of the importing country in the form of consoler invoice or legalize the exporter’s commercial invoice. When explorer called for L/C, of is with the other documents by reference to the invoice number, L/C number and by quoting shipping marks and number in order to identify the goods.

Inspection Certificate

Certificate of inspection is also a important document, it is in those consignments where the importer wants to assure himself, about the shipment of the correct goods, in terms of the quality, description quantity and size. The documents should specifically identify to the goods by having a reference to the marks and numbers of the package and linkage to the other documents by reference to invoice number, the letter of credit number, the vessel name and the shipping line.

Form-E

Form-E is a document issued by the exporter bank. Through form-E the SBP controls the overall exports of the country. The form-E declares that the export information given on the form-E are correct and will submit the duplicate and triplicate copy of this form to authorized bank.

GCUF Page 22


Form-E contains the following important information’s.• Description of the goods, the quality of the goods exported.• The quantity of the goods.• The terms of the L/C.• Destination of the goods.• The consignee bank. The importer bank name through countries the payment would be released.• The invoice value of the goods in the exported.• The port form where the good are shipped.• The place form where good are cleared.• Date of the form-E is also on this form.

Form-M

It is also an important. It is used to play the commission to the agents. ZT receive this form the agents. On this the amount of the commission is mentioned against invoices.

Shipping Bill

The customer clearing agents issue the shipping bill. It contains the complete information about the export bank the importer name, the exporter name, the weight of the goods, (Net and gross weight), number of packages, amount in US$, quality of the goods, the container number, the exchange rate and rupee amount.

Administration Department

This is very important department of the organization as the name shows; this department has to administrate all the operations of the organization. This is handed over to the A.M (Admin. Manager) of the company who is retired Army officer. Section of this department are divided into offices as under:

• Labor Office• Security Guard Office• Gate Office• Time Office

Labor Office

As required by the labor department of the Govt. of Pakistan, this office has been setup to deal

GCUF Page 23


with all the matters that are related with labor. The department is under the labor officer. He is responsible to resolve all the disputes, conflicts, misunderstanding and any other kind of matter which may arise from time to time with the labor and the immediate supervisor or with any other person in the organization. It is the duty of the labor officer to inform the legal requirements concerning the labor and company affairs as well as any changes in the labor laws. It is also the duty of the labor officer to satisfy itself regarding payment of bonus, gratuity, and the other benefits to labor and to keep their morale and motivational level high. It is also a requirement to be a successful labor office that he should keep his knowledge up to date regarding the rules and regulations of the labor department.

Security Guard Office

The main objective of the security office is to safe handling of the goods from / to the mill premises. For the achievement of such objective a team of security guards has been employed by the company. All the keys relating the mill office, labor colony, (quarters) are lying into the responsibility of the security officer.

• No outside visitor can enter in the mills premises without the permission of the Admin Manager.

• Whenever any visitor wants to enter into the mill, security guard firstly contact with the authority in the mill to grant the permission to enter into the mill’s premises.

• Security guards can check each and every person before coming in or going out of the company gate for the security purposes.• They see and check the outward going pass of the certain things when these going to out of the mills premises.• They are the guardians of the every thing of the company.

Gate Office

This office has been made to keep the record of each and every thing coming into and going out of the mills gate.For this purpose gate office clerk maintains two types of register called;

1. Outward going pass register2. Inward going pass register

When every thing including raw material, stores supplies, or any other thing comes into the mills premises a document named as I.G.P is made in which information like date of supplier, description, quantity of the material and any other remarks are written. In the same way O.G.P is prepared for out going things etc and they made a summery on daily basis and fax to Head Office.

GCUF Page 24


Time Office

• This office keeps and maintains the time record of all the workers on incoming time cards and pay register for the final preparation of the workers salaries.• It keeps the attendance records, which is then used to calculate the salary to be paid to the workers on monthly basis.• It keeps the records of the over time single as well as double, leaves, number of days worked of all the workers and than calculate their over time on the basis of the gross salary of each worker.• It keeps the records of Social Security and Education Cess etc of each employee / worker payable to government treasury.• It keeps the records of Gratuity, Bonus, Pensions and other benefits including CPL (Cash Paid Leave) to each employee / worker of the organization.

Core Competencies

The core competencies of the firm includes

• Technology• Work Force• Facility• Market Experience

According to management one of the factor, on the basis of which they are competing in the market is the technology of there product.The next important thing is the work force according to management; our employees have been the backbone of the company. They deserve to be given the right condition and right environment for them to grow and prosper. Throughout the history of the company, management has prided themselves in its excellent relationship with its employees. This bond has been recognized as one of the most important ingredient of our recipe for success. Facility of the firm is also one of the core competencies of the firm. The firm is located at Faisalabad, 1km Jaranwala Road, Khurnanwala, Faisalabad, Pakistan where it can easily approaches to customer and supplier. Similarly the market experience is an other core competency.

Marketing Mix

Marketing mix is the set of marketing tool that the firm uses to get its marketing objective in the target market.

4P’s

1. Product

GCUF Page 25


2. Price3. Place4. Promotion

Product

The company is committed to produce and achieve excellence in high quality products. The products range is extensive and include all sort of curtains, kid’s bedding, fashion bedding, traditional bedding, basic bedding and kitchen articles. As a fully integrated textile manufactures, the company’s products range is extensive. It includes various types of fabrications and blends, such as 100% cotton, cotton lycra, cotton polyester, cotton silk, etc.The focus is to make differentiated products by using different types of fabrics, such as solids, dobbies jacquards, etc, and creative styling in the make-up to give high value for money.

Price

Pricing is an important element in the marketing process for any company. The price policy of company must be in such a way that it should produce a reasonable profit, for the company and should satisfy the customer. Following two factors are very important.

• Fixed Cost• Variable Cost

Fixed Cost

Fixed cost is the cost which remains always same in total whether produce large quantity or small quantity. Fixed cost per unit rises as the quantity produced decreases and vice versa. Some companies always try to use their full capacity of production because with increase in production the fixed cost decrease. Following are some important factors of fixed cost. Some examples are:

• Salaries & wages• Rent• Local Taxes• Fixed cost in value, the cost related to the machinery.• Building cost• Electricity change• Insurance expenses• Plant cost

Variable Cost

Variable cost changes in total with the change in quantity produced. It increases as the level of activity increases. Per unit variable cost remains same whether to produce large or small

GCUF Page 26


quantity. Some examples are:

• Material Cost• Factory Overhead• Part time Workers• Transportation Charges• Miscellaneous

Fixed cost + Variable cost + Desired profit = Total cost

Pricing Objectives

The obvious pricing objectives of Zainab Textile are,

• Maximization of profit• To achieve the target return and targeted sales• Maintain the market share

Pricing Strategies

ZT adopts following strategies in case of pricing fixing:

• Direct Selling• Agent Selling

Direct Selling

If company sells directly then price components will be as follows:

Fixed cost + Variable cost + Desired profit

Agent Selling

If company sells to the customer through agent then fix price in this way:

Fixed cost + Variable cost + Desired profit + Middleman’s commission

GCUF Page 27


The profit margin depends upon the quality and condition of the market. If the market will new obviously price level will be low to attract the customer and complete with the existing competitor.

Pricing Procedure In Local Market

ZT sells locally only extra quantity left from the foreign order. They call tender when they want to sell the production in the local market. They sell to those persons whose tender price will be high. Some times, ZT sells its product itself, when some extra quantity is left from foreign order, they sell at suitable cost.

Pricing Procedure For Export

Pricing procedure for export is different from the local procedure they charging the price in foreign factors before charging the price in foreign market. When any customer wants to purchase the products, after negotiation they fix the price. Some important factors are inland freight, sea freight, clearing charges, etc.

Place / Distribution

ZT export more then 90 % or its product. So, they are using two types of distribution channels in export.

• Direct Channel• Indirect Channel

Direct channel

ZT is also dealing directly with the customers. As in the local market and the foreign, the buyers direct contact with the BT. So the export department fulfill their orders by the transformers. The transporter help in delivering the products. The transporter are helping a lot in progressing the textile industry. The comely delivery to the buyer is the greatest service to the customer, timely delivery is important for the success and development of the organization.

Indirect channel

GCUF Page 28


ZT to agent & to customer. In the export of textile products, the agents are the back bone of textile industry. They receive order on the behalf of buyer, give to the seller. They receive their commission from the buyer and the seller.

• The agents also purchase the products; sell them directly to other buyers. So in this trading they earn enough profit.• There has been a large number of agents which are working for their organization in foreign countries as well as in this country.• Mostly the export business is through these agents. The agents have been successful due to credibility and honesty of their work.• BT mostly receives orders through agents.• BT pays commission to them.• Mainly the responsibilities lie on the agents in case of delayed shipments, payment problems and the quality problems.• As most of the product of Zainab are exported. So, they use different modes of transportation to transfer the product from Zainab to customer’s country. MostlyZainab export its products through ship. They are other modes of transportation also being used

• Trucking• Shipping• Air Lines

Promotion

ZT promotes its products, but to a limited extent.

• ZT provides the company broachers to the buyers.

• ZT provides the samples of the grey fabric. The yarn to the customers.

• ZT has a direct contact with the local and the foreign agents, so they also promote the company

products.

• Visits to the customers.

• ZT marketing manager also visits its customers.

• Their high quality of the products on the fine count the grey cloth is also promoting the company

and establishing image and goodwill.

• ZT provides the timely information to the customers which help in promoting.

GCUF Page 29


SWOT analysis

According to my information, I got from different hierarchy of persons to analyze these things

The executives of ZAINAB TEXTILE always the mission and goals, so that they scan the internal

and external environment to identify elements that influence the organization performance.

SWOT analysis is the method that helps managers to identify the organization strength,

weaknesses, opportunities, and threats.

Internal Environment

ZAINAB TEXTILE has following benefits, weaknesses, threats and opportunities:

Strengths:

Imported machinery

Competent and committed staff

Loss sustaining capacity

Friendly environment

Weaknesses:

No promotional activates as desired

Due to currency devaluation prices are increasing

Not enjoying the economies of scale

GCUF Page 30


No award according to ability of employees

No proper criteria for judgments of employee performance

Opportunities:

Potential in market

Produce sophisticated products

Potential for growth in the market

Threats:

New entrance

Economic instability

Tough competition

Increased cost of production

Political instability

PEST Analysis

Political

the recent political changes will hopefully have a favorable effect on the economy during the next

financial years. This should help the textile industry consolidate and expand in the export market.

ECONOMIC

The products of this mill are at the maturity stage and have received positive image from the local

as well as the foreign market. So it will grow in the country’s economy.

Socio Cultural

The changing lifestyles of people may also effect the growing demad of ZAINAB TEXTILE

products. Changing in like, dislikes, tastes differ demographically according to the cultural values.

GCUF Page 31


Globalization values will also make the positive effect. Increasing income level of people may also

result in social mobility.

SUGGESTIONS

As Textile Industry is in crises but ZAINAB TEXTILE is performing very well in such difficult

economic conditions. The avenues are always open for further improvement. I hope that

suggestions given by me will not only benefit to the management for getting business. But worker

will also efficient in performing their duties.

After a short and careful analysis, I come to know that there is centralization of Authority.

The directors take all decisions. Even mangers on their own behalf can not take any decision.

Because delegation of authority creates responsibility if management will delegate some authority

then mangers would feel themselves even more responsible, so they would work with zeal. By

this directors will spend their important time in forming policies and will seek opportunities for

improvement.

I would like to recommend that the management should start some criteria for evaluation of

employees and there should be some reward for efficient workers. This reward may be non-

monetary. Such as “Employee of Day” Employee of the Week, month and year etc. this will not

increase any monetary burden but will increase the efficiency and productivity of

employee/workers.

The standard cost of goods sold is 75% to 80% of sales for manufacturing industries. But

we see cost of goods sold of ZAINAB TEXTILE is 92% and 91% in the 2004 and 2005

respectively. The management should take some policies to reduce cost of good sold. Thus it is

necessary that there should be a separate department for cost controlling.

GCUF Page 32


Operating Cost of ZAINAB TEXTILE is too much high. The company should control its

huge operating cost. Sales of the company decreased this year as compare to last year but

Administration and selling expenses are increased. Company should control and minimize these

costs to have contribution towards Profits.

The main reason for unprofitable operation of the company is its high production cost.

According to an estimate the production cost of the company is always above the Textile Industry

Standards. To increase the production and control production cost company should replace his

old Plant & Machinery with Latest one.

The purchase Department of the company is not fully computerized. There should be

computer system in the department. It will help the manager to search the required quality Store

& Spare Parts at comparatively least prices.

The company should give the medical facility to its managerial staff and workers.

The end

--------- : --------

TABLE OF CONTENTS

Pakistan Textile Industry Page 1

History Page 1

Current Stattistics Page 2

Textile Vision Page 3

Incentives To The Industry Page 7

Textile Package Page 8

Introduction To Zainab Textile Corporation Page 10

Group Performance Page 11

GCUF Page 33


Awards To Group Page 11

Company Information Page 12

Mission Of The Company Page 13

Administration department Page 14

Social Security Benefit Page 14

Employees Old Age Benefit Page 14

Gratvity To Workers Page 15

Account Department Page 15

Marketing Department Page 16

Export Department Page 17

Export Documentation Page 19

Description Of Export Documentation Page 19

Administration Department Page 23

Marketing Mix Page 25

SWOT Analysis Page 29

PEST Analysis Page 31

Suggestions Page 31

GCUF Page 34