Anmol Textile Mills Ltd 2013-14

5/23/2018 Anmol Textile Mills Ltd 2013-14

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EXECUTIVE SUMMARY

The Textile Industry:When Pakistan came into being there were only 16 textile mills out of

which only 12 were in operation. It grew to 70 in 1!7 as in"ustrial

"e#elopment takes place. $ow a "ay there are !6 textile mills out of

which %%2 are in operation. er the years' Pakistan is sai" to be the

single crop economy i.e. cotton an" textile that claims the lion(s share in

terms of the contribution in the national economy of Pakistan.

)espite efforts to bring in "i#ersi*cation in country(s o#erall economic

get+up the textile sector continues to be the most important segment of

the national economy. Its share in the economy' in terms of ,)P'

exports' employment' foreign exchange earnings' in#estment an"

re#enue generation altogether place" the textile in"ustry as the single

largest "eterminant of the economic growth of the country. )espite

harsh an" har" international economic con"itions' Pakistan(s textile

in"ustry has weathere" the storm by coming out of the international

crisis in a #ery positi#e manner.

Textiles Exports from P!istn:

-extiles constitute a maor exporting sector for Pakistan' which accounts

for about 60/ of the countrys total foreign exchange earnings. -he

maor export items are yarn gray loth' *nishe" cloth' towels an" be"

sheets an" their maor customers are the 345' urope' apan an" 8ong

9ong. :any textile exports take place un"er ;uota arrangements With

the urope an" the 3nite" 4tates. ,ray cloth constitutes roughly 16+1


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5t present' the export competiti#eness of the textile in"ustry can be

impro#e" by aggressi#e marketing techni;ues an" ;uality impro#ements

which ha#e to be taken care of micro+le#el that is each textile unit

shoul" make its own in"epen"ent efforts to sell its pro"ucts in "ifferent

international markets.

5$:&= has grown from a cotton export house into the premier

business group of Pakistan concentrating on % core businesses

-extiles' ement' >anking an" Power ,eneration. -o"ay' 5$:&= is

consi"ere" to be at par with multinationals operating locally in terms of

its ;uality pro"ucts an" management skills.

-he company is free from the energy crisis because it has set up its own

power generation units that are not e#en fulfilling the energy

re;uirement of 5$:&= mills but they are also selling this to ,o#ernment.

-he company is hol"ing the position with the spinning' wea#ing an"

"ying units with the extraor"inary pro"uction capacity.

5$:&= is running "ifferent business with "ifferent famous pro"ucts like5$:&= =inen that has opene" its outlets in maor cities of Pakistan.

)ifferent "epartments are working well to achie#e the strategic aims of

the company. -hey are a"opting the latest :anagement information

system to access "ata that results in pro"ucing timely results for

"ifferent "epartments

-he *nancial ratio analysis shows that the company is enoying goo"

profits an" is consistently running its operations e#en in the con"itions

when the country is passing through critical con"itions.

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A"M#$ MI$$S $IMITE%

5$:&= :I==4 =I:I-) ?5$:&=@ commence" business in 1!1 as a

partnership concern' which was con#erte" into pri#ate limite" company

in 1!. In 161' the company went public an" was liste" on the

9arachi stock exchange' the only stock exchange in the country at

that time. In 1


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C#MPA"Y I".#RMATI#"

/#AR% #. %IRECT#RS:

hief xecuti#e :r. 4heikh $iaD 5num

Aana :uhamma" :ushta;

:s. $abiha 4hahnawaD heema

:r. :uhamma" 5Dam

AU%IT C#MMITTEE:

:r. 9hali" Ea"eer Eureshi hairmanF:ember

:r. :uhamma" 5Dam :ember

:s. $abiha 4hahnawaD heema :ember

C0IE. .I"A"CIA$ #..ICER:

:r. >a"ar+ul+8assan

C#MPA"Y SECRETARY:

:r. 9hali" :ahmoo" hohan

AU%IT#RS:

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AiaD 5hma" G ompany hartere" 5ccountants

$E1A$ A%VIS#R:

:r. :. 5urangDeb 9han' 5"#ocate'

hamber $o. 6' )istrict ourt' Haisalaba".

MI$$S:

:ill 4ite 120 9m ,- Aoa" &kara

Phone J2+%%2+!%!%B0

Hax J2+%%2+!%2B2B%

0EA% #..ICE:

&Kce 4uit L1' 2n" Hloor' 1! 4hah

amal' =ahore

Phone J2+%2+7!%1!%0' 7!B2B%%

Hax J2+%2+7!%BB%2

mail anmoltextilesMhotmail.com

infoManmoltextile.com

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Mission Sttement

-o pro#i"e ;uality pro"ucts to customers an" explore new

markets to promoteFexpan" sales of the ompany through

goo" go#ernance an" foster a soun" an" "ynamic team' so as

to achie#e optimum prices of pro"ucts of the ompany for

sustainable an" e;uitable growth an" prosperity of the

ompany.

VISI#" STATEME"T

-o transform the ompany into a mo"ern an" "ynamic yarn'

cloth an" processe" cloth an" finishe" pro"uct manufacturing

ompany that is fully e;uippe" to play a meaningful role on

sustainable basis in the economy of Pakistan.

-o transform the ompany into a mo"ern an" "ynamic power

generating ompany that is fully e;uippe" to play a

meaningful role on sustainable basis in the economy ofPakistan.

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ompany Pro*le

Sponsors:

4ince last four "eca"es' the members of this group ha#e ma"e

tremen"ous contribution in boosting the textile tra"ing sector in

Pakistan. -he members of the group are wi"ely recogniDe" as

pioneer of textile yarn tra"ers in the country. -his achie#ement an"

recognition is the result of groups eNorts in a"opting a"#ance"

techni;ues of tra"ing' remarkable organiDation culture an" on time

honoring its commitments.

Indoor Mn2ement:

-he company to"ay "eri#es its strength from a uni;ue blen" ofentrepreneurial ownership a""e" with unparallele" skill of

professionals.

-o"ay' the company is manage" by highly ;uali*e" team of

professionals with #ast experience in their respecti#e *el"s. #ery

"epartment is hea"e" by a professional' ;uali*e" an" experience"

executi#e.

Employees 3elfre 4 Addition in /uildin2:

5nmol -extile :ills =t" belie#es in a"mirable work en#ironment. -he

management staN relationship which exists within 5nmol bears

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witness to this principle. Oarious social welfare schemes an"

programs like social security' pro#i"ent fun"' free me"ical ser#ices'

regular an" performance bonuses' easy loan facilities ha#e been

implemente" for the bene*t of the employees. In or"er to pro#i"e

i"eal resi"ential to workers an" oKcers Workers olony' >achelor

8ostel an" ,.:. >ungalow are constructe" at site.

ank payment #ouchers

>ank receipt #ouchers

ournal #oucher or a"ustment #ouchers

Petty cash #ouchers

-hese #ouchers are now "iscusse" below in "etail

Csh Pyment Vou8hers:

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>eing a public limite" company cash payment #ouchers are use" for

recor"ing the expense of less than *#e thousan". -hese types of

#ouchers are prepare" when cash payments are ma"e against small

expenses i.e. repair' entertainment etc. In or"er to recor" the expensesfollowing entry is passe"

5ccount co"e name of expense ?"ebit@ 5mount

ash account ?cre"it@ 5mount

#i"ence of expense is attache" with the cash payment #ouchers.

Csh Re8eipt Vou8hers:

-hese types of #ouchers are prepare" when the cashier on behalf of the

5$:&= mills limite" is recei#ing cash. 8owe#er' these types of #ouchers

are small in ;uantity because maority of transactions are "one by

bank. &n receipt of cash' cashier prepare" the cash recei#e" slip.

5ccount officer prepares #oucher on the basis of cash receipt prepare"

by the cashier. In or"er to book the transaction the following entry is

passe" in the books.

5ccount co"e cash account ?"ebit@ 5mount

Income 5F or recei#able 5F ?cre"it@ 5mount

/n! Pyment Vou8hers:

>eing a public limite" company the maority of payment transactions of

the 5$:&= mill limite" are carrie" out through banks. >ills an"

in#oices being appro#e" by the competent authority reach at the table

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of accounts officer for payment. 5ccount of*cer checks the appro#al an"

mathematical accuracy of the bill an" prepares the bank payment

#oucher. 5ccounts officer *rst con*rms the nature of expense i.e. capital

or re#enue an" "e"uction of tax if applicable then pass the following

entry

5ccount co"e 5sset name or expense ?"ebit@ amount

>ank account ?cre"it@ amount

)e"uction of tax at source ?cre"it@ amount

#i"ence of expenseFasset is attache" with the cash payment #oucher.

/n! Re8eipt Vou8hers:

5ccount co"e che;ues clearing 5F ?"ebit@ amount 5ccount recei#able

5F ?cre"it@ amount 5"#ance against sale 5F ?cre"it@ amount

&n clearing of abo#e referre" che;ues following entry passe" in the

books of account officers. 5ccount co"e >ank 5F ?"ebit@ 5mount

he;ues clearing 5F ?cre"it@ 5mount

Ad7ustment Vou8her or =ournl Vou8hers:

-hese types of #ouchers are generally prepare" in the followingcircumstances

Purchase on cre"it

4ales on cre"it

Writing oN assets i.e. "epreciation store consumption etc.

Aecti*cation of mistakes or omissions

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-hese are "iscusse" below in "etail'

Pur8hse on 8redit:

,enerally raw material' stores an" spares are purchase" on cre"it. Inor"er to account them for the ournal #oucher are prepare" by the

concerne" account of*cer

5ccount co"e Purchase 5F ?"ebit@ 5mount

5ccount payable 5F ?cre"it@ 5mount opy of the in#oices is

attache" with #ouchers.

Sles on 8redit:

=ike purchases' sales ?local an" export@ are ma"e on cre"it an" at the

time of "eli#ery of goo"s following ournal are prepare" by the account

officer

re"it sales 5F 5mount

opy of in#oices is attache" with #oucher.

3ritin2 off ssets:

-hese ournal #ouchers are prepare" in or"er to change the assets to

expense for the preparation of monthly accounts.

-o account for "epreciation of *xe" assets 5ccount co"e )epreciation

5F ?"ebit@ 5mount

5ccumulate" "epreciation 5F ?cre"it@ 5mount

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-o account for the raw material consumption

5ccount co"e raw material concerne" 5F ?"ebit@ amount

Aaw material store 5F ?cre"it@ amount

-o account for store consumption

5ccount co"e store concerne" 5F ?"ebit@ amount

4tore an" spares 5F ?cre"it@ amount

-o account for accrue" expenses

5ccount co"e expense 5F ?"ebit@ amount

5ccount payable 5F ?cre"it@ amount

In a""itional to abo#e referre" kin"s ournal #oucher is also passe" to

rectify the mistakes ma"e in #oucher preparation or posting.

$ed2er Postin2:

omputer operator puts log number an" makes posting in computer.

5ccounts of 5$:&= :I==4 are computeriDe" an" le"gers are prepare" in

computer. 5fter the preparation an" co"ing of #oucher it is sent to

computer operator for posting. 5 "aily print out of all entries is checke"

to check the accuracy. 5fter checking the accuracy the master *le is

up"ate" an" posting is ma"e to respecti#e account le"ger by the

computer. -hese recor" *les are also sen" to recor" room that they can

be recalle" as e#er nee"e".

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/A">I"1 SECTI#"

-he main purpose of the "epartment is ensuring the a#ailability of the

fun"s for operation' best utiliDation of a#ailable fun" an" to "eal with

banks. Hinance manger prepares "aily cash ows statement in or"er to

"etermine nee"s an" utiliDation of fun"s.

5 weekly proecte" cash ows statement is also prepare" in or"er to

"etermine the nee" of the coming week. 5n account officer prepares

bank reconciliation statement of all the banks an" list out the

outstan"ing entries. 8e then traces the reason for these entries an" put

bank reconciliation on the table of *nance manager. &n receipt of bankstatement the manager prepares cash ow statement an" presents it to

the finance "irector for future actions.

)ealing with bank is normally by recei#ing bank reconciliation

statements. When banking "epartment recei#es such statement it

tallies transaction with its own le"gers. erti*es that whether items

"ebite" or cre"ite" is true in all respect. If any "iscrepancy is foun" it is

tol" to bank. 4ince 5$:&= mills limite" is a large organiDation so "aily

bank reconciliation are recei#e" from the bank.

Pro8ess:

5ll the che;ues' which are presente" for payments' any interest or

commission charge" by the bank' che;ues' recei#e" by the banks an"

cre"ite" in the account of 5$:&= mills limite"' any interest recei#e"

on account of 5$:&= mills limite" by bank are recor"e" an" then

tallie". 5 person "esignate" as 5ssistant :anager 8ea"s banking

"epartment.

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Mr! Up Sheets:

4econ" maor function of the banking "epartment of 5$:&= mills limite"

is preparation of mark up sheet. $ormally *nance is obtaine" from

banks against securities. -he securities are ?a@ ple"ge cotton ?b@

mortgaging machinery etc.

-his loan is taken sometimes for short perio" an" sometimes for longer

perio". 4o in these loans interest is pai". -his interest rate #aries. -his

interest is calculate" on "aily basis. When interest an" loan amount is

pai" to bank' it is this "epartment' which calculates the interest amount

"ue on 5$:&= mills limite". 5lthough interest sheet is sent by bank but

it is reconcile" by the "epartment.

1ecause

your minor mistake may result in huge losses. :oreo#er youwill loss your cre"ibility. Horm "irector to cotton selectors allare in#ol#e" in cotton purchase process.

ST#RE PURC0ASE %EPARTME"T

4tores incharge hea"s the store purchase "epartment.

Purchase "epartment is as un"er

)irector

Purchase &Kcer

5ssistant Purchase &Kcer

Purchase lerk

-he store purchase "epartment is responsible for the purchaseof items like 4pare parts of machinery' an" Packing materialspares' electric items' &il an" lubricants' 4tationery items'

>uil"ing :aterial an" ,eneral 4tore.

%#CUME"TS

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)eman" Ae;uisition

In#oice of Purchase

)eli#ery &r"er

In ,ate Pass

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SA$ES SECTI#"

4ales "epartment is one of the important "epartments in any

in"ustry. If a unit pro"uces best ;uality goo"s but ha#e notcompetiti#e staN then it woul" be "iKcult to sell the pro"ucts.

-he structure of sales "epartment is as un"er.

5$:&= -extile :ills is selling its pro"uct to local as well as ininternational market. -hus the sales "epartment of the 5$:&=

-extile :ills is "i#i"e" in to two sections

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%ire8tor

%ire8tor

Mn2er $o8l

Sles

Mn2er $o8l

SlesMn2er

Export

Mn2er

Export

Commer8il

Asst

Commer8il

Asst

Export Asst

Export Asst

Sles

%eprtment

Sles

%eprtment

$o8l sles %eptt

$o8l sles %eptt Export %eptt

Export %eptt


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Pro8edure

-he following acti#ities are performe" in the local sales

"epartment.

-he "irectors recei#e the or"er of yarn by -ele phone' fax

or e+mail. )irectors e#aluate the capability to ful*ll the or"er by

consulting "aily stock repot from mills.

)irectors gi#e the instructions to local sales manager

that transfer the information on local sale contract slip.

>efore issuing contract slip' sales manager checks the

selling limits of the particular party an" "iscusses the matterwith )irector if it is selling limit

4ales "epartment writes the three copies of "eli#ery

or"er signe" by "irector &ne copy is "ispatche" to the mill for issuing goo"s .

after rea"ing the particulars of "eli#ery or"er store in charge inthe factory will issue the goo"s .

&ne copy of "eli#ery or"er is sen" to the accounts

"epartment an" thir" one is kept for recor".

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Hinancial 5nalysis

Aatio 5nalysis

$I?UI%ITY A"A$YSIS

It shows the * rm ability to pay its short+term obligation on time.

CURRE"T RATI#

@,++ @,+@

1 0.


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%E/T#R C#$$ECTI#" PERI#%

@,++ @,+@


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"ET PR#.IT RATI#

@,++ @,+@

1.!7/ 2.7/

-he company pro* t is increasing with the passage of time. It is

because of its 0/ exports.

#PERATI"1 PR#.IT RATI#

@,++ @,+@

10.70/ 10.

-here is little increase in pro* t of the co. It is because of hiring of new

employees which increases the salaries of the co.

RETUR" #" ASSETS

@,++ @,+@

B.%


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B22/ 220/

5nmol hea#ily "epen"ing on the outsi"ers *nancing.

C#VERA1E RATI# A"A$YSISo#erage ratio is use" to see the ability of a *rm to pay its * xe"

*nancial cost.i+e.

Interest payment

=ease payment t

)i#i"en" to preferre" stockhol"ers

TIME I"TEREST EAR"E% RATI#

@,++ @,+@

1.B6times 1.!6times

5nmol is paying interest 1.!6times in a year' which is greater than

pre#ious years.

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0oriontl Anlysis

/A$A"CE S0EET

C#MM#" SIDE 0#RID#"TA$ A"A$YSIS

ASSETS: @,+@

@,++

;Rupees y "oing this trainees will show more

interest' more "e#otion' more potentials an" will work with their full

mental an" physical efforts.

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Anmol Textile Mills Ltd 2013-14

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