1

PAGE 1

|Internship Report ON

NIAGARA MILLS (PVT) LTD.Prepared by:

Name:

Muhammad ShafiqueClass:

M.ComRoll No.:

14292Session:

2013-2015 Registration No.:

2013-GCUF-05926

COLLEGE OF COMMERCE

GOVERNMENT COLLEGE UNIVERSITY, FAISALABAD

4-Dedications:

I dedicate this to my Beloved Parents, Teachers (instructor), Finance and Accounts Managers with their love, attention & efforts made it possible to make my internship report up to this point. I also would like to dedicate my internship report to all other officials of the Niagara Mills (Pvt) Ltd who gave me the all assistance to prepare and complete such an important report. I especially dedicate this report to the Mills Manager and Manager HR (Head Office) of this organization and authenticated individuals who allowed me to do this job in the organization. I spent my eight weeks with this Organization to get the necessary information about the flow of work, evaluation of financial statements and the nature of business which will be helpful in my future professional career and life. I am very thankful to all and especially to my instructor for this cooperation who will be the honorable to me forever.

5-Acknowledgement:

These are the numerous blessings of almighty Allah which is only the admirable in his unimaginable existence and qualities in the world and magnificent guidance of Holy Prophet Muhammad (S.A.W. M.) who is only the proficient to be followed to the success for both in this world and after the death. I am happy to honor my sincere appreciation to my teachers (instructor) and all those Niagara officials who guided me by their enthusiastic, sympathetic and progressive attitude and supervision. I feel a huge debt of passionate guidance for their cooperation and valuable instructions during my internship period in Niagara.I would like to thank all Officials and Head of Departments of Mill like Mills Manager, Deputy Manager Accounts and Admin, Deputy Manager Audit, Manager Store and Inventory.

I would also like to thank all Officials and Mangers at Head Office guided me very well in all aspects to complete my internship at Niagara.At last I would like to again thank to my parents and instructor by their prayers, attention and precious instructions I am able to complete my internship.

6-Executive summary:

Pakistans textile industry products are famous in the whole world due to the quality and variety products. Niagara Mill (Pvt) Ltd is one of the famous export and competing units in Pakistan and especially in Faisalabad. Niagara Mill exports dyed, printed cloth in rolls form and has also its own stitching unit near Head Office from where it also exports made ups like kitchen accessories, table cloth, sofa cloth, Parda cloth, bed sheets, fitted sheets, napkins, bed spreads and other miscellaneous made ups as per buyers demand. I also try to collect complete list of companys product line in this report. I gained knowledge of processing technology (process and procedures of production), process costing and financial analysis at Niagara Mills (Pvt) Ltd. I also collected the financial statements of Niagara for last three years and compared the companys performance over these three years by using ratio analysis like vertical analysis, horizontal analysis, industry and trend analysis etc.I collected scanned financial statements of these three years and attached with this report and also compared it with its one competitor through industry analysis and also attached a scanned copy of that company for reference.

I concluded that although the Niagara mills have the handsome profit trend but it is less lucrative to its competitor such as in the year of 2014 the profit of this organization was 3.43% of its sales but the profit of its competitor is in 2014 5.71% of its sales.SWOT analysis of this organization also done in this report, the list of the future plans of this company also mentioned after the SWOT analysis. I also gave some of the conclusion and recommendation to improve the company profitability and the financial strength of the company. References and source of data used in completing the internship report also given, in annex section I also provide the scanned copies of all statement and report which were helpful to complete this job.7-Table of Contents:

1. Title Page01

2. Letter of Undertaking..023. Scanned internship certificate .034. Dedications..03

5. Acknowledgement...046. Executive summary..05

7. Table of Contents.068. Brief introduction of the organizations business sector..089. Overview of the organization...09a) Brief history.09b) Nature of the organization...10c) Business Volume 11d) Product lines of the organization.12e) Competitors.1410. Organizational structure..16a) Organizational Hierarchy chart16b) Number of employees......17

c) Main office.......18d) Introduction of all the departments..1911. Plan of your internship program.37a) A brief introduction of the branch where you did your internship37b) Starting and ending dates of your internship.37c) Names of the departments for training duration training..3712. Training program3813. Structure of the Finance Department..42

a) Departmental hierarchy42

b) Number of Employees Finance Department43c) Finance & accounting operations.4414. Functions of the Finance Department.44a) Accounting system of the organization44b) Finance system of the organization..45c) Use of electronic data in decision making45d) Sources of funds46e) Allocation of funds4615. SWOT analysis of organization in the business sector..4716. Conclusions....4917. Recommendation...5018. References & sources used.50

19. Critical analysis...51a) Financial analysis..511) Ratio Analysis512) Horizontal Analysis...593) Vertical Analysis...624) Industry Analysis..655) Trend Analysis..69 b). Future prospects of the organization.73

8. Brief introduction of the organizations business sector.

Pakistan is an agricultural country and Cotton Raw and Cotton Made ups are the major exports of Pakistan. Textile Sector is playing an important role in the growth and development of Pakistans Economy. Niagara Mills (Pvt) Ltd is one the leading textile industries who are playing a vital role in countrys GDP and Employment. There were 16 Textile Units at the time of independence of Pakistan and only 12 were running at that time. In 1957 these Units were increased up to 70 by industrial development. Now more than 600 Textile Units exist, out which more than 500 Units are in operation. Textiles Export Revenue contributes a large share to Pakistans GDP. Cotton Textile Process contains various processes including Cotton Ginning, Spinning, Weaving, Processing and Finishing, Stitching for made ups etc. Niagara has not its Spinning Unit, it purchases yarn from the market and make the grey fabric at its Weaving Unit located at Khurrianwala, Faisalabad. Some times it has also to purchase Grey Fabric from the Market or Weaving Units. Then it sends the grey fabric to its Processing Unit for processing i.e. Bleaching, Dyeing / Printing and Finishing. Then Some Finished Fabric is Packed in Bales shipped/exported directly to the Foreign Countries and Some Finished Fresh Fabric is sent to its Stitching Unit located at Kashmir Road, near Head Office, Nishatabad Faisalabad for conversion in Made Ups for Shipments or Export as per Buyers requirements.9. Overview of the organization

a) Brief history:

Niagara Processing Unit was come into being in 1986 by the name of Minaco Fabrics owned by the old owner and some foreign investors. The head office of this organization was situated at Block No.6, Shahdin Building, Shahrah-e-Quaid-e-Azam Lahore Pakistan whereas the factory is situated at 03 km Jhumra Road, Khurrianwala, Faisalabad.This Minaco Fabrics was auctioned by Habib Bank in 1999 being insolvent of the owners of the organization and then it was purchased by Mr. Sheikh Imran the current C.E.O. of the Niagara Mills (Pvt) Ltd. He changed its name as Niagara Mills (Pvt) Ltd. Mr. Sheikh Imran is very hard working and brilliant man because Niagara Mills (Pvt) Ltd is running and growing very successfully since 1999 by his great efforts, guidance and control. Now the head of this organization is located at Kashmir Road, Nishatabad, Faisalabad, Pakistan.

The aim of Niagara is to serve its customers/importers by the top class quality products. It is the reason that Niagara has achieved an honorable name among most of the leading textile units in Pakistan. Niagaras strong sense to adopt latest technical innovations is also a key factor of its vertical growth.Niagara also has earned a valuable name in the international market due to its dealings, services and customers satisfaction. Niagara is an integrated structure of state of arts, set up of machineries and highly skilled & experienced manpower.They produce complete range of textiles from top quality fabrics to high profile made ups & textiles and export to Europe, USA, South & North America and Russia etc. They express the blend of their most sophisticated tools, skilled & dedicated work force of over 1500 employees to all Niagara groups of industry and quality assurance system results in finest quality fabrics & textile products. b) Nature of the organization

The nature of the Niagara Mills (Pvt) Ltd is that it is a Private Limited Company. The liability of the partners of this organization is limited up to the capital invested by them. Mr. Mian Imran Ahmad is the Chief Executive Officer of this organization. He has had his share of luck on many occasions in life and has been awarded the best exporter award at the Faisalabad region in 2012 by the Government of Pakistan in past near. Other Board of Directors is Mr. Mian Qais, Mr. Dr. Afzaal Ahmad.

Niagara is a textile unit having the Weaving, Bleaching, Dyeing, Printing and Stitching Units facilities. They acquire the raw cloth as grey sometime from grey supplier or sometime from its own weaving unit Niagara Weaving (Pvt) Ltd which is also situated at Khurrianwala Faisalabad, and then Process for bleach, dye, print and stitch the fabric as per the customers requirements. Customer is the party for whom the fabric is needed to be dye, bleach, print and stitch. Finished Fresh Fabric is exported or shipped in the form of Rolls from Processing Mill directly and some fabric is sent to Stitching Unit Faisalabad where the fresh fabric is converted in Made Ups as per Customers requirements and Made Ups are exported or shipped from Niagara Stitching Unit.c) Business Volume

Niagara Mills is not only respected in the textile sector Pakistan but it is well known at international level because of its strong commitment to Total Quality Management and customer satisfaction. Niagara Mills is a medium size organization but its average earning is more than 60 millions per year. Authorized share capital of this organization is Rs.300 millions divided into 30 million shares of Rs.10 each. Capital proposed to be raised equity capital Rs.100 millions and has the 10 billion shares of Rs.10 each. The growth of this organization is constantly increasing every year and The Niagara Mills got the maximum orders for processing from abroad as well as from the local market in Pakistan. In the year of 2012 Niagara had made the total sale which was two billion, four hundred ninety one million, one hundred eleven thousand and four hundred seventeen rupees as (2,491,111,417 rupees). It is the highest and record production in the history of Niagara Mills. Besides, this year every industry in the world has to face a lot of crises and challenges due to some economical problems in different countries. Thats why the usage and the demand for every thing has been decreased. However the Niagara was succeeded in getting the maximum orders as compared to other competitors industry in the year of 2013.

d) Product lines of the organization:

Niagara Mills producing a complete rang of high quality of products for its customers in Pakistan as well as in the other countries such as America, Canada, and England etc. Niagaras products are very popular in these states due to the total quality management and continuous improvement to achieve the strategic, operational and tactical goals. Product line of Niagara Mills consists of the following:

1) BEDDING CATEGORY:

Sheet sets (Sing/Double Bed Sheets, Fitted Sheets etc) Quilt cover sets

Bed spreads

Comforters

Bed skirts

Oxford pillow cases Blanket covers

Mattress Covers

Sleeping bags 2) CURTAINS & ACCESSORIES: Embroidered curtains

Pencil pleat tape curtains

Pinch pleat lined & unlined curtains

Tab top & rod pocket curtains

Assorted pelmets and window dressings Oxford cushion covers

Frilled and piped cushion covers Frilled, piped and pleated tie backs 3) TABLE, FURNITURE & KITCHEN ACCESSORIES: Sofa Covers

Coushons

Tea cozy

Table mats

Table cloth and napkins

Aprons

Kitchen gloves

Pot holders

Chair pads with circle tacks

Couch cove

e) CompetitorsWhether we are aware of it or not, we are surrounded by tough competition. Competition is every where, wherever you go, you have to facing huge and tough competition. In every field or profession we have to face many competitors such in Education, administration, Government Sector, in business leadership, in human service providers, health care professionals, finding better jobs and in all kinds of businesses, industries and Govt. Sector. Just like to above the Niagara Mills also facing the strong competition in Pakistan as well as in abroad. Producing goods is not enough, it does not mean that you are the successful one if you have produced well, you must also have to keep it in your mind how it will be sold and how the actual cost can be recovered and how to compete with its competitors and how the organization can earn profit and can maintain profit at increasing level. Due to the strong competition everyone has to think about producing before producing effective products. Any how, there are so many processing units in Pakistan but here we undertake some of the following competitors close to Niagara Mills:Some Very Close Competitors to Niagara: Al-Veera Textile Mills (Pvt) Ltd Sheikhupura

Bismillah Fabrics (Pvt) Ltd Faisalabad

Haroon Textile Mills Ltd Faisalabad

Abdul Rehman Corporation Ltd Faisalabad

Kamal Textile (Pvt) Ltd Khurrianwala Faisalabad. Five Star Textile (Pvt) Ltd Faisalabad

Zafar Textile (Pvt) Ltd Faisalabad

Noor Fatima Textile (Pvt) Ltd Faisalabad

Gohar Textile (Pvt) Ltd Faisalabad

Sadaqat Textile (Pvt) Ltd Faisalabad

Al-Rehmat Textile (Pvt) Ltd Faisalabad

MSC Textile (Pvt) Ltd Faisalabad etc.

Kamran Textile (Pvt) Ltd Khurrianwala Faisalabad. Chenab Textile (Pvt) Ltd Faisalabad. Nishat Textile Ltd Faisalabad. Faisal Fabrics Khurrianwala Faisalabad.

Amtex (Pvt) Ltd Faisalabad.10. Organizational structure:

a. Organizational Hierarchy chart

b. Number of employeesNiagara Mills is medium size entity and has the maximum sanctioned strength of employees is 450 employees. These are the permanent employees of this organization whereas 150 employees are working under different contractors such as Loading & unloading, grey stitching, checking and folding and rolling and bailing etc. I got the data about the number of employees as well as their earned salary from January 2013 to December 2013 for every month in regard to total employees of this organization for the mills not for head office.

Sr. No.MonthNo. of Emp.Salary Amount

1January 20134213,389,487

2February 20134343,417,220

3March 20134423,593,293

4April 20134443,305,763

5May 20134453,474,045

6Jun 20134363,073,522

7July 20133932,932,220

8August 20134003,578,891

9September 20133783,372,332

10October 20133763,298,513

11November 20133433,126,465

12December 20133553,151,072

Avg. Per Month4063,309,402

c. Main office

The main office of the Niagara Mills is situated at Kashmir Road, Nishatabad Tehsil & District Faisalabad. The respected CEO of this organization attends the main office at daily basis. Since it is an exporter firm therefore all kind of dealing in abroad taking place at main office, Most of the raw material such as grey, dyes & chemical, stationary and others purchase taking placed at main office. Following departments are working at head office:

Admin & HR Department

Procurement Department Purchase Department

Marketing Department

PPC Department

Accounts Department

Banking & Payment Department

Audit Department

IT Department

Export Department

Legal Account Department

Sampling Department

d. Introduction of all the departments

Niagara Mills is one of the largest processing facilities of Pakistan with monthly capacity of 3 million meters with an array of modern machines, it is the geared to meet the ever increasing the demand of their client. Niagara processing unit has been divided in to different section to facilitate uninterrupted process flow and to insured quality control at all stages almost 75% chemical and dyestuff being used is of European origin. An independent quality control department with a strong backing of fully equipped laboratory insured quality standard at all level. The processing plant has also been awarded ISO 9001 Certification which is another achievement in this regard by Niagara Mills (Pvt) Ltd.

1) Administration Department:Administration is a key department of every organization. Administration department in Niagara mills make arrange for the all new appointments through advertisement, conduct interview and select the right people for right jobs according to the company and concerned field requirement. Sometime they hire some people who may less skilled or less trained, the administration department are fully responsible to arrange some training programs to give a right idea how to perform and how to combat with challenges. They deal in all kind of human activities i.e. health & safety, compensations & benefits as well as accommodation to them. They perform as company representative to all external issues and all civil or government departments such as civil defense, Employees old age benefits institution, Punjab social security institution, drainage etc. They also deal in all kind of sues filed in the name of the company.

2) Security Department: Security department play a very important roll in the Niagara Mills. They are responsible to keep an eye on all security matter in this organization. The security guards are appointed at different check posts to view the every misconduct in the organization. Beside this at least five number of security guards including security incharge and security supervisors are fully alert at the main gate of this organization for 24 hours. They keep the records for every person coming to mills and for every person going out from the mills. They also maintain the record of all purchased items and others arrivals at mills such grey as raw material and all kind of shipment sent to dry port to export other countries. I found there that the security and intelligence system is very efficient in their job. They are well educated and maintain their record very well. They maintained different type of books and reports such as Inward Gate Pass, Outward Gate Pass etc.

3) Time Office Department:Time office department is another key department of this organization. In simple words we can say that without the existence of time office no organization control the salary & wages system effectively. Employees complete record is maintained at this department such as employees personals file raised at the appointment stage having complete data about the name, fathers name, qualification, previous work history, date of joining, date of confirmation as well salary package etc.

They have the swab attendance card system at time office, an identity card issued to every permanent employee of this organization. Every employee makes swab his card at this machine system when he come on duty and also swab out his card when he leave from his duty. So all these data about wages hour and overtime hour are maintained at time office in software which is named as PMS stand for Payroll Management system. Payroll management system is an oracle based system. All kind of information about salary and overtime as well as the other information are posted in this software at continuously basis.

At the end of month a salary sheet raised from the time office department and then forward to accounts department and then audit department. Audit department check the salary sheet according to audit point of view and after complete checking and satisfaction forward the salary sheet to account department to make the salary payment. The same procedure is done for the monthly overtime payment. Following are the main reports conducted from payroll management system:

Designation Wise Strength

New Appointment

Employees Information

Employees Addition & Deletion

Employees Leave Details

Absent Report

Leave Availed Summary

Leave Availed Balance

Leave Details (Leave Wise)

CPL Detail

Gratuity Report

Bonus Report

Gift Detail Report

Increment Wise Detail

Hajj Detail Report

Monthly Salary Sheet

Bank Salary Sheet

Employees History

Attendance Report

Leave Encashment

Monthly Overtime Report

EOBI Detail Report

Social Security Contribution Report

Full & Final Settlement Report etc.

This is the main view of the Payroll Management System software of Niagara Mills (Pvt) Ltd.

4) Sample Room:

The Sample Room department also exists in Niagara mills. The sample of all design fabrics produced in Niagara mills are kept at sample room department. Fabrics sample are in hanger shape and five pieces of sample are dispatched along with every design shipment. In sample all design sample are racked according to their design and quality specifications. Every sample piece has a chit on it having the Printing order no, quality, width and meter piece etc. They are directed by higher management, sometime by Production Planning and Control and by marketing department to send a particular sample, when they need to show a sample to buyers. The sample room officer looks out the concern sample and dispatch accordingly. Sampling is a key important job to attract the buyers attention, if your sampling would not good enough then how could you become the market leader in your particular field.

The front view of the sampling software is given below:

The sample room department is responsible to prepare the sample in hanged shape as well as in five or two meters piece of all design which are running in the mills at daily basis and kept these sample for the connivance in future. The sample room maintains all these data in software named as SSS stand for Sample Stock System. All sample stock received at daily basis is posted in sample receiving form and issue stock posted in issuance form. SSS software is also oracle based system, it conduct different report which are as under:

Design Wise Receiving Report

Rack Wise Report

Party Wise Receiving Report

Printing Order Wise Report

Date Wise Issuance Report

Design Wise Issuance Report

Party Wise Issuance Report

Date Wise Issuance Report

Quality Wise Stock Report

Design Wise Stock Report

Dyed Stock Report

Bleach Stock Report

Print Stock Report

5) Main Store Department:Main store department is another key department of the Niagara mills. Main store is used to store the all kind of mills purchase and issue them to appropriate department in time afterward. Mills purchases are received at mills gate, the security incharge check these items along with the challan sent by purchase department and then sent to the main store department. The main store received these purchase and store there, and then they call the concern department by whom its demand raised. They come to main store and after checking these items they make reject or accept remarks, if the remarks as accept then it would issue to them otherwise in case of rejection, the main store dispatched back these purchases to the supplier.

At the end of every monthly audit is done by the head office audit team which may comprise of 15 to 20 internal auditors. They get check all items physically according to the stock reports and then make report to Chief Executive Officer of the Niagara Mills at head office Faisalabad about their audit activities at mills.

The main store of Niagara mills has very strong computerized system of inventory. They perform very well and there is no any lose handling of stock. They control their inventory by using inventory software named as Purchase Inventory System PIS.

The main view of Purchase Inventory system is given below:

Purchase Inventory System is very efficient system and conducts so many reports. Following are the main reports subjected in this software:

Store Indent / Demand Report

Purchase Order Report

Inward Gate Pass

Inspection Note

Goods Receipt Note

Issue Note Material Return Note Rejection Note Material Return Note Details Report

Free of Cost Items Report

Transaction Tracking Report

Purchase Order Tracking Report

Item Ledger Report

Slow Moving Items Report

Item Issue Report

Item Purchased Report

Comparison Report

Date Wise Item Consumption Report

Stock Report etc.

Purchase Inventory System of Niagara is an oracle based system and is in working very well according to the requirement of the company.

6) Grey Department:

Grey department is the basic department of this organization. All raw cloth to be dyed, bleach or printing are stored at this department. Grey staff is responsible to receive these raw fabrics at first arrival and store them at grey department according to quality wise separately and maintain the stock accordingly. They issue these raw fabrics upon the approval by the Production Planning and Control department lot wise. Niagara Production Control (NPC) is an oracle based system which is used to control the gray management system. All kind of fabrics which are received at daily basis are posted to this system and then all issuance are also posted to this system, so this is how they maintain the stock of grey cloth at Niagara mills. These posting comprise of many things such PO no, quality, width, quantity etc. Depending upon these data feeding the NPC conduct the following report:

PO Wise Grey Ledger PO Wise Grey Ledger (All) Date Wise Grey Receiving Date Wise Grey Issuance PO Wise Grey Receiving PO wise Grey Issuance Lot Issue Report Grey Stock etc.7) Accounts Department:

Accounts department is a very important department every organization. Accounts department of Niagara mills is responsible to maintain the higher level of accountancy. All kind of accounts ledgers are maintain at this department. All kind of cash receipts and cash payments or other cash activities are done at this department. They also maintain the daily cash book of Niagara mills which is duly signed by Managing Director of this organization.

They prepare the processing bills for all fabrics production according to the agreed rate. The main work of accounts department of this organization is to make ready payment for all kind of mills purchases. For this procedure they collect all relevant documents from different department such as IGP from Main gate, GRN and Inspection Note from Main Store, Lab Report from Laboratory in case of dyes & chemical, to complete the store purchase voucher in which they credit the supplier account by the amount of supply made. Salary and overtime also checked by accounts department at monthly basis.

All kind of petty voucher or payment are also prepared and checked by account department. All kind of documents prepared by accounts department are forwarded to audit department for final checking. All documents are considered final only after complete checking of audit department. Accounts department also using the oracle based computerized system Financial Accounting System (FAS). All kind of transactions are made through FAS. FAS conduct many reports which are as under:

Day Book

Daily Voucher Status

General Vouch Type

Store Purchase Voucher

Account Ledger

Cash Receipt Voucher

Cash Payment Voucher

Cash Book etc.

The main view of the Financial Accounting System is given below:

8) Audit Department:

The audit department is an independent department of this organization; they are working only under control of CEO and Managing Director of Niagara mills. They have strong check on all financial activities as well as the other activities at mills. They have the view option of all computerized management system at their computers. All kind of payments are done after complete checking and verification by audit department.

At daily basis the audit department checks the activities of different department at different point of view. For example the audit person checks the all activities at main gate of the mills such as all kind of receiving, all kind of dispatches etc. Audit person also check the all purchase physically at main store and get inspected their rate verification. All kind of activities at Time Office also checked and verify by audit department. All kind of loadings are done in the presence of audit department. Audit is a supreme authority after or in the absence of the directors of Niagara mills.

At the end of every month they audited the all departments of this organization such as main gate, main store, sub store, grey godwon, sample room, accounts, engraving, time office and production department etc. They also conduct audit at quarterly, semi annual and annual basis. After their audit activities they prepare the audit report of all activities in case of any negligence found during audit and forward to CEO of the Niagara mills

9) Bleaching Department:

Sometime cloth is bleached according to customer requirements. Bleaching helps to remove impurity from the cloth. For this purpose singeing machines are used and cloth is bleached in the following steps.1. Desizing

Sometimes cloth is desized according to production requirements. It is used to remove the grey fabric stiffness of the cloth that helps in bleaching for easy washing.

2. Scovring

It is done in bleaching machine, it helps to remove artificial spot like oil, grease etc.

3. Brushing

It helps to remove thread.

4. Singeing

It removes pills by temperature.

5. Chemicals tanks

It is used to remove oily and stain spots on cloth.

Fabric preparation is crucially important, as the successful out come of all subsequently operations is dependent on it. Niagara Mills always try to reduce the natural impurity of cotton and to impart good hydrophilic properties, this section has two singing machines and two modern open with width bleaching plants, to give more luster and strength, one chain less mercerizing machine is also in operation. Bleaching section is preparing input fabrics for dyeing and printing section. This section also bleaches bacteria killer fabric for Japanese hospital linen and fire retardant low pill fabric for contract textiles. At the end cloth is raped on a batch, and then bags are used to prevent air penetration. Before the cloth forwarding to next department batch number, quantity, meters of cloth are written on a card and stocked with batcher.

Machinery Detail of the Bleaching Section:

Singeing Machine No.1

L-Box Plant No.1

Drying Machine

Singeing Machine No.2

L-Box Plant No.210) DYEING Department:

Niagara Mills provides quality piece died fabrics in heavy twills to some of the world leading brand names like Gap, Old Navy, Banana Republic and sears, this has been made possible by using high quality fabrics from the mills own weaving units and by using expensive dyestuffs, Highly trained technicians keep a close check on all stages of production depending upon specifications, dyeing in reactive, disperse, pigment. Vat and sulphur is possible. To further enhance their existing dyeing capacity of 1,000,000 meters per month, Niagara mills are intending to install the further dyeing machines to their dyeing department which is another proficient step to their success. This would certainly give them an edge over their competitors and would be welcome addition in the ever-changing apparel fabric market. It will help Niagara mills limited to improve its market access and consequently profitability.Following files are maintained in dyeing section,

Training files

Dyeing files

Washing file

Lab to bulk file Sample received file

Singeing file

OK for curing

Sample status

Sample letter

Shortfall file

Daily stock file

After curing file

Folding return file

Daily attendance register

Water fall card

Machinery Detail of the Dyeing Department:

Drying Machines 115

Open Jigger Machines 110

Pressure Jigger Machines 112

Jumbo Jigger Machines 114

11) Design Studio Department:

The state of the art design studio, known for producing transparencies of the highest quality, accommodates a STORK STK image 3000,a CST Ramset silicon graphic and STORK Drum scanner plotter, along with a team of convention manual color separation artist is also maintained.

Design studio is a sub department of processing. Here cloth design is made which would be then directed to Engraving department for exposing the design over printing screens. Tracers are there to trace out different pattern and design of cloth. For each type of color different films are made. Different trace papers that are used at Niagara Mills are of Kodak and AGFA. For each color separation, there are positive and negative films. Positive film is sent for processing. Ink is used to fill scratches and unwanted graphics.

Tracing table is used to examine designs and it helping tracing of design. Germany waterproof ink is sued to avoid the ink expansion. Digital design studio is also complementary department of design studio where designs are made on computer program using advanced information technology.

12) Engraving Department:

Technology advancement in the field of rotary printing necessitates upgrading the pre-print line-up. Niagara Mills is reputed for the most efficient use of the STORK engraving systems for manual exposing as well computerized exposing. They are well known for halftone work in single step designing.

Living up to this reputation, they have recently added to their line lf production the ROTARY WAX JET With exposing resolution at 1019dpi and a screen boundary of 640,820 and 914mm. Engraving at this high resolution with digital technology enhances the print quality to a great extent and reduces the existing human error margins to the minimum level.Engraving department not only responsible for exposing the printing design but they are also perform stripping of the exposed screens. Sometime most of the designs kept in engraving store do not expected to repeat for production in future, therefore they are instructed to strip these screens instead to raise the demand for new purchased screens. Stripping is the process of washing screens using different kind of chemicals. After stripping process, the stripped screens are again ready to be exposed a new designed on these stripped screens. After exposing the appropriate design according to the Printing Order, exposed screens shifted to printing department. Printing department put these screens on the Rotary Machine and start printing. After completing the printing order quantity, screens are washed by printing department and send back to engraving department to keep it store up to the next order for that design.

Engraving department also responsible to maintain the screens store and their record, there are five screens store under the Engraving department. According to recent physical counting there are the total 13185 no screens at engraving screens store. It includes the different size of screen such as 1850/640/40, 1850/640/125, 3050/640/80 and 3050/640/125. The fist figure in these sizes shows the screen length of the screen, second figure shows the repeat or boundary of the screen and the last figure shows the meshs specification. 13) Printing Department: Printing department is a very important section in Niagara Mills. It is another step to upgrade the existing machine mix. Anew 3.2m (126) Regina printing machine, with a facility to print 16 colors has been installed. This machine with UNICA system successfully combines production and quality performance at the highest possible level in rotary screen-printing.

Niagara Mills has a well-trained work force to print extremely intricate and complex halftone designs. Monthly printing capacity of this section is about 203 million meters. Besides conventional printing in pigment and reactive dyes, printing in puff effects, resist and discharge dyestuff is also done in Niagara Mills. Machinery Detail of the Printing Department:

Printing Wider Rotary Machine (color)

Printing Wider Rotary Machine (operation)

Printing Narrow Rotary Machine (color)

Printing Narrow Rotary Machine (operation)

Ager Machine (Backing)

Printing Sampling Machine

Following files are maintained in printing department of Niagara Mills,

Process sheet

Job description specification

Audit report

Assessment file

Purchase order

Work instruction

Staff document

Worker document

Reactive color document

14) Finishing Department:

Offering optimal final fabric quality and handle all complexities which effect the quality of the printed fabrics. Recently this section has been equipped with a new generation / Babco-starters. This machine combines tried and tested drying technology with innovative electronic control system ensuring absolute reproducibility of fabric qualities and full documentation on the quality control checks.

Besides offering normal finished, this section also full fills the demands for scotch guard protection for soil release and resist finish, peach skin affect finish, Fire Retardant finish, water proofing, anti crease and easy care finish,

Machinery Details of Finishing Department:

Stenter Babcock 130

Stenter Monforts 110

Stenter Monforts 95

Stenter Monforts 73

Stenter Krantz 95

Stenter Krantz 73

Sanforizing M/c monforts 73

Raising for Flannel sucker &muller118

Emerizing M/c sucker & muller 71

Calenders Ramish 110

15) Quality Control Department:Quality control is an independent section which monitors all production operations to the required levels of the local as well as international market. Quality control department is fully responsible for achievement of the quality in all Niagara product line. All production made at this organization are inspected by quality inspectors in quality department. They are highly skilled and trained in their field and point out all defects in fabrics and communicate to the production experts so that these defects not repeat again. These defects are occurring due to so many reasons which are pointed out at inspection stage. There are huge numbers of defects which may occurs but following are the some defects are as under:

Hanging Thread

Dead Cotton

Hard Singeing

Poor Pilling

Small Pin Hole

Poor PH

Poor Tagwa

Unequal Salvage

Fluff

Side Cut

Stanter Head Up

Stanter Unequal Dye

Tenting

LCR

Chamber Friction

Color Spots

Blanket Lascar

Color Lascar

Design Flushing

Design Out

Booing

Squeing

Fabrics Heat Up

Mandi Stain

Unequal Weight

Calander Salvet

Quality Control Policy:Niagara mills limited are fully committed to move things in direction of Total Quality Management. Their prime Objective is to producing products to the entire satisfaction of buyers. For this they plan thing ahead, fresh ideas are developed, make more effective use of time, put the right man in the right place, and keep on updating the skills of the employee by training.

In the factory, in order to motivate employee and workers toward quality management, many billboards are hanged containing the various statements like,

Quality has no finish line

Quality is degree of excellence

According to Juran Quality is fitness for use

Quality ensures our futureProcedure of Conducting Quality Control:Quality control procedures are carried out at every stage during production. From purchasing of material to cutting and stitching right till folding and packing of the final product, each aspect is scrutinized and controlled to the international quality standards.

16) Niagara Laboratory:

Niagara Mills has their own lab which is fully equipped with advanced technology to conduct all relevant tests. The staff not only keeps control of the bulk production, but also involved in standardization of process routes and operating procedure.Niagara mills limited has not only build an international standard quality control to meet customers satisfaction but also to improve their own product quality. Various type of test is conducted at this quality control lab to improve the quality of products and to meet customer requirements. All dyes and chemicals are first tested at this laboratory and then the lab professionals prepared the lab report for each and every dyes and chemical and demonstrate their results along with accepted or rejected remarks. After complete analysis, these dyes and chemicals are allowed to use in process. Beside all other fabrics test are conducted at this lab. Following are the main tests that are conducted in lab,

1) Counter tests

To count warp and weft

2) Count Glass

To count ends and picks

3) Weight

To measure weight of cloth

4) Cock meter test

It examines dry rub and wet rub

5) Pilling test

It is used to test pilling of cloth

7) Durra test

It is used to examine fastness of cloth

8) Auto Wash

It is used to examine change in shade

9) Vasctor

It is used to examine shrinking of cloth

10) Tumble dryer

This test is used to examine dryness of cloth

11) Padder

It is used to examine matching and finishing of cloth.

12) Curing

It is used to examine shade of cloth

13) Light box test

It is used to examine fastness of light on cloth.

14) Presser

It is used to determine pressing of cloth.

15) Visco meter

It is used to measure thickness of printing past.

16) Inspection table

Here warp and weft and other type of fault are examined.

17) Chemical analysis

It is used to examine acidity.

18) Spectro photo meter

It is used to examine shading.

29) Perma meter test

It is used to measure passage of air from the cloth.

These types of tests are conducted keeping in view market requirements and customer demands.17) Folding Department:

Folding department is the final and ultimate department of this organization. All fabrics produced at Niagara Mills are checked and packed at this department. Fabrics folding and packing is done in different shapes such as pallet packing, than packing, roll packing, bale packing and card board than packing. At folding department all produced fabrics are categorized as fresh cloth, fresh sample, and B grade, cut piece and miss print. All fresh cloth and samples are exported to abroad while the B grade, cut piece and miss print are sold at local market of the Pakistan. Fabrics folding are done according to the order specification which is mentioned in printing order sent by the Marketing department to Production planning and control department. Then all kind of packing are done under observation of the production and planning department as well as shipment of the consignments.

All record and details of processed fabrics posted into the Niagara Production Control System (NPC). NPC is software in which all information or detail about fabrics status has been posted at every stage such at grey issue stage, at dye or bleach status, printing and finishing status as well as folding stage. Based on all these data feeding the NPC offer huge number of output reports on different departments, following are the main report of folding reports conducted by NPC:

Daily Folding Report

Daily Dispatch Report

Folding Stock Report

PO Wise Packing Dispatch Report

Date Wise Packing Summary Report

Order Complete Packing Report

In folding department there are many number of big table on which cloth checked and they found the fabrics faults to categorize the fabrics according to their finding. In folding following machine are installed:

18) Production Planning & Control Department:Production planning and Control department is responsible o control all production priorities and to load machine on day-to-day basis, a full fledge production planning cell is in operation. This production planning system is designed to be fine tuned with the clients needs and thereby ensures responsive handling of all accounts by fore-casting demands from each client in terms of greige quality, space on print/ dye machines and space on stitching machines. Coupled with forecast from their buyers, it makes their system work efficiently. The production planning and control department examines the all production activities to keep and maintain the quality standard committed in Niagara Mills. The main advantages of this system include shorter lead times, on time deliveries, less wastage and less quality hassles.

It is an intermediary between marketing department and processing department. It issues daily production program to each processing unit. Daily production reports are received in this department. New product development letter is also received in this department. Then work is planned accordingly. Niagara group is pioneer for making production and planning for their betterment. Instructions are first given to production and planning department and then distributed to other processing units. Here various type of analysis are conducted like,

Bleaching production analysis

Printing production analysis

Dyeing production analysis

Finishing

Folding

Damage trend analysis

Monthly maintenance breaks down analysis

19) MARKETING & SALES DEPARTMENT:Marketing & Sales department is situated at Niagara head office Faisalabad. I also visit to Niagara head office with the approval of Respected Mills Manager of this organization. I spent my five days at Niagara head office. In marketing department I learned how the orders are executed from the old buyers and how the new markets and buyers are discovered and executed. Normally what happen is that the buyers contacts the marketing department and ask for the sample, if buyer accepts he gives order, Marketing department than issue a sales contract to the buyer.

Marketing Strategies of Niagara Mills:Effective production is not only a good job, actually selling is big job. Marketing is very important for any organization. Niagara mills are fully committed to follow up the established marketing strategies which include the following: Meeting with buyers

Company profile

Buyer visits

Free sample

Contact with agents

R& D for marketing

Through Internet

Yellow pages

APTMA buyer dictionary etce. Comments on the Organizational Structure:

Departments of Niagara mills are structured based on the set of related responsibilities. The set of responsibilities being discharge set the tone and structure of that department. The complexity and diversity of these responsibilities also affect how departments are set in an organization. Existence of Functional departments in every organization varies with the nature of industry and the nature.

Niagara mill is a hierarchical structured organization in which every entity in the organization, except one, is subordinates to a single other entity. This is the dominant mode of organization among large organizations; most corporations and governments are hierarchical organizations. Following are the main characteristics of hierarchal structure Low number of subordinates per supervisor

Long chain of command

Greater number of levelsSince the structure of the Niagara mills is hierarchical therefore it has greater number of levels and long chain of command which make the structure very complex. The board of directors of Niagara mills if directly involved in every decision at all level. Sometime they make inefficient decisions due to the lake of information and over self confidence. Whereas this could be lead to some financial and psychological loss, but employees involvement may prove as more productive as compare solely decision made by the higher management.

11. Plan of your internship program

a. A brief introduction of the branch where you did your internship:

I did my internship program at Niagara Mills (Pvt) Ltd situated at 03 km Jhumra Road, Khurrianwala, Faisalabad. Niagara mill is a processing unit of dyeing, bleaching, finishing and printing. It has 450 maximum numbers of employees working with this organization and this is the sanctioned strength of employees. I found this organization very efficient and successful in its aim and strategic objective. It produce printing cloth collection which are totally for export to abroad and playing the important roll in the economy of the Pakistan.

b. Starting and ending dates of your internship Program:

I planned to attend this organization dated from June, 2015 to Jul, 2015. This was my 2 month approximately training period with this organization. It would be my rich experience in my professional career.c. Names of the departments in which you got training and the duration of your training:During my internship period I spent time in all departments to learn and gain maximum data about them but my focus was on following four key departments.

Time Office or HR Department1 weeks Main Store Department

2 weeks

Accounts Department

2 weeks

Audit Department

3 weeks

I have been attending this organization timing from 09:00 am to 17:00 pm but I spent my two hour daily in other department to know about them. First of all I spent my one weak

12. Training program

a. Detailed description of the operations/activities performed by the department(s) you worked in.1. HR or time office department:

I spent my time during my internship period in different departments to get information about the work or activities they perform but my detail working was in the four key departments such as Accounts department, Audit departments, Main store and Time office of this organization. First of all I spent my one weak in time office which is the HR department of this company. All the new appointments are made at this department; they interview all the new employees to this organization. They evaluate all the new comers and ensure that the selected candidates are fit to their concern jobs. The advertisement for all vacancies available at this company is done by the HR department, they arrange for receive of the job application and make the call to most appropriate or suitable people for the concerned jobs. After the selection of called candidate the HR department issues the appointment letters to the selected professionals. They treat the workers under probation period for first three months but after the probation period they recommend them as permanent employees to the higher management.

The HR department also responsible to arrange training program held within the company and motivate the employees to be inventive. Furthermore they are responsible to prepare and maintain the record of employees attendance and overtime. At the end of the month, they prepare the salary and overtime detail sheet and then forward to accounts department for duly checking and forward to audit department for the final checking and verification. After final checking and verification by audit department, it goes to cash officer who is the solely responsible to disburse the salary and overtime to all of the workers of this organization.

To record this huge sized data the HR department using computerized software which is named as PMS stand for Payroll Management system. Payroll management system is an oracle based system. All kind of information about salary and overtime as well as the other information are posted in this software at continuously basis.

At the end of month a salary sheet raised from the time office department and then forward to accounts department and then audit department. Audit department check the salary sheet according to audit point of view and after complete checking and satisfaction forward the salary sheet to account department to make the salary payment. The same procedure is done for the monthly overtime payment. The payroll management payroll management conducts different report to provide the brief and snap shot to its users such as Designation Wise Strength, New Appointment, Employees Information, Employees Addition & Deletion, Employees Leave Details, Absent Report, Leave Availed Summary etc. So finally we can say that the HR department is a key department whose contributions are very important to become successful.

2. Main Store Department:

Min store department is also a very important area of this organization. I spent my next two weeks in this department; all the purchases inventory arrived at mills are received and keep stored in this department. They keep the inventories in a secure and convenient way and issue them to on the demand of others department. At the arrival of the inventory they raise a document Goods Receipt Note which involves the item specification, rate of the item, and the total amount payable to creditors as well as the IGP date and number. They main store using the FIFO method to control the inventory system as they use it first in first out, after preparing the goods receipt note they raise a document named as inspection note which has to be signed by the concern goods inspector of concern department. Then afterward they forward these all document to the accounts or finance department to prepare the payment voucher for the concerned parties or creditors. The main store using the computerized software to control the inventory system named as Purchase Inventory System. It is an oracle based system and has the great space to store the huge number of data in it and can be used to generate any kind of inventory reports such as Store Indent / Demand Report, Purchase Order Report, Inward Gate Pass, etc. So the main store department is very crucial to keep store and issuance of the inventory of any organization.

3. Accounts Department:

The existence of an accounts department is vital to every business, whether whatever kind of it. I spent my next two weeks in the accounts department of this organization and learn a lot form this department. The accounts department of this organization performs very important functions; they are responsible to deal all kind of payment to creditors and to receive from the debtors. The main function of this department at mills is to make the payments ready for all the creditors for the purchase of mills. Normally they have the 30 days credit period after the date of purchasing. Within this period the accounts department is responsible to dispatch the payment to the parties. They gather the all supporting documents of the store purchase voucher and then forward to audit department to final checking and verification. They also deal to locally purchases at mills and make the payments to the suppliers. They are also responsible to disburse the salary and over time payment to the workers as well as the other payment of bonus to employees.

They are also having computerized software to record the financial data of this organization named as Financial Account System. All the transactions are posted in this system at daily basis and so this can be used or viewed at any time by the higher management. They are also responsible to maintain the daily cash book which is duly signed by the worth managing director of this organization at daily basis. All the payment which are made by the accounts department are prepared by the accounts department which needs to be checked and verified by the audit department but the accounts department get the final approval from the worth managing directors be the payment is to made. Audit Department:

I spent my next three weeks in the audit department of this company, which is the maximum time period in my internship; I opt to spent maximum in this department because all the work done by different key departments forwarded to audit department to make sure the accuracy of the work and the audit department is responsible to check and verify the work done by other department. So I feel that to work in this department will be more beneficial for me. Audit department is the supreme authority in this company and has a lot of power and control over the each and every area of this organization. The audit department has strong check on the other department activities. The audit department has great importance in the eye of the board of directors of the company and they trust on the audit department. b. Detailed description of the tasks assigned to you.

I spend time during the internship period in the different departments of this organization, and in these departments I have been performing the different tasks. The detail of these tasks according to the key department is given below where I was engaged to work.

HR Department: In HR department the job to maintain the manual attendance register as well as the posting to the payroll management system. Systematically feeding of the daily employees leaves form accordingly. To prepare the daily absent report as the late coming employees detail. To prepare the in out report of the employees etc.Main Store Department:

To receive the daily inventory as per the daily purchase detail sent by the head office.

To get keep the all inventory arrivals at the mills to proper place.

To issue the stock at time of department requisition.

To keep the manual as well as computerized record of all inventory at mills etc.

Accounts Department:

To gather the all document relevant to prepare the store purchase vouchers.

To prepare the store purchase voucher for the payment to the suppliers.

To maintain the supplier ledgers accordingly.

To dispatched the payment advice to the companys suppliers that the payment is ready at head office etc.

Audit Department:

Checking and verification of the daily gate movement report.

Checking and verification of daily cloth dispatch report, cloth arrival report, and stock purchased for the mills.

To checking and verification of the store purchase the vouchers.

To Checking and verification of different ledgers maintain at mills.

Checking and verification of the all payment dispatched to parties etc.

13. Structure of the Finance Department:a. Departmental hierarchyThe structure of the finance department of the Niagara Mills (Pvt) Ltd is very wide and strong. They establish the maximum positions in finance department to cover their all financial transactions efficiently and effectively

b. Number of Employees Finance Department

The detail about the number of employees is given below:

Sr. No.Position NameNo. of Employees

1Director of Finance1

2Deputy Director Finance1

3Manager Accounts 1

4Manager Audit1

5Deputy Manager Accounts H/O1

6Account Officers H/O4

7Assistant Account Officers H/O4

8Cashier H/O1

9Deputy Manager Accounts Mills1

10Account Officers Mills4

11Assistant Account Officers Mills4

12Cashier Mills1

13Deputy Manager Audit H/O1

14Audit Officer H/O4

15Asst. Audit Officer H/O4

16Auditors H/O2

17Deputy Manager Audit Mills1

18Audit Officer Mills4

19Asst. Audit Officer Mills4

20Auditors Mills2

Total Number Employees46

c. Finance & accounting operationsFinance & accounting operations of this organization is very excellent and have good system to maintain the all finance and accounting transaction in a very wise way. There is no chance to happen any ambiguity in the finance system of Niagara mills. They are all about the professionalism in the finance and accounting operation.

14. Functions of the Finance Department

The finance department of the Niagara Mills (Pvt) Ltd performs the following function within the company established policies.

Maintenance of books of accounts and preparation of financial statements of the company in accordance with the IAS.

Coordination and facilitation for Business planning and budgeting function in the Company and periodic reporting to the management and to the Board. Preparation of budget, appropriation of accounts, re-appropriations, surrender and savings. Conduct internal Audit. Treasury administration. Administration of Taxes i.e. Sales Tax, Entertainment Tax, Luxury Tax and Entry Tax etc. Resource mobilization through loans, Institutional Finance, Credit and Investment. Compilation of Codes, Rules and procedures concerning financial transactions.

Safety and investment of funds from consolidated funds and contingency fund.

Contract, recovery and refund of revenue etc.a. Accounting system of the organizationAccounting system of the organization based on accrual basis which is required by law as the companies ordinance 1984 to meet the criteria of the International Accounting System. Company follows the double entry system and record the all transaction on daily basis in the accounting software of the company. The Niagara Mills (Pvt) Ltds has its own software to deal the all accounting data which is named as FAS Financial Accounting System. Financial accounting system is an oracle based system and have the capacity of hundred of gaga bytes. It generates different accounting reports and accounts ledgers. Accounting professionals and the higher management of the company to makes the important decision of the company.b. Finance system of the organizationFinance system of the Niagara Mills (Pvt) Ltd is very strong and intelligent. They hired the highly skilled professionals who have the potential to drive the finance of the organization in a better way. They are able to forecast and budgeting the various expenditures and plan them accordingly. They have full control the financial data and financial resources. They increase their earning through better utilization of the available resources of the company by forecasting planning. They analyze the whole situation and then prepare different budget and policies of the company. They have close eye on the available financial resources of the organization, where it should be utilized and how can they generate the more and more fund to meet the long term and short expenditure of the firm. They assist the board of directors to take the important financial decisions based on the past and current financial performance of the organization. They maintain the sufficient liquidity to meet the accidental expenses of the organization. c. Use of electronic data in decision makingAs mentioned above that the Niagara Mills (Pvt) Ltd have their own computerized accounting software to record and maintain the financial transaction. Financial Accounting System of the Niagara Mills (Pvt) Ltd has the abilities to record and manipulate the huge number of data. The financial professional and the board of director of this organization rely heavily on that system. They can see their expenses on different heads on periodically or daily basis or whenever they want to see they can, through the Financial Accounting System of this organization. They can determine the cash in hand or cash at bank by using the cash ledgers and if they want to know how much they owe they can easily check their liabilities as well their account receivables. So the Niagara Mills (Pvt) Ltd uses the electronic data in decision making within the organization.

d. Sources of fundsNiagara Mills (Pvt) Ltd is a private limited company and they mostly rely on their private source of funds. The annual turnover of the Niagara Mills (Pvt) Ltds encompasses billions of dollars. All the fabrics produce at Niagara Mills (Pvt) Ltd fully exported to European countries and bring the maximum amount of dollars in Pakistan and contribute in the development of the economy of the Pakistan. They also use the long term debt from financial institution situated in Pakistan. Following are the main sources of this organization:

Companys own capital

Debt equity

Long and short term debt

Personal borrowing

Sales revenue

Internal borrowing

External borrowing

The Niagara Mills (Pvt) Ltd has very strong financial structure and they are managing very well their financial needs in time. Now they are planning to set up weaving as well stitching units in future, its mean they have the sufficient funds or capital to run not only their current business but also to build up some other business premises.

e. Allocation of fundsThe Niagara Mills (Pvt) Ltd allocates the available funds effectively and efficiently. They do not allocate the higher fund to that project which have the lower risk and have the low cash or benefit inflow. They have the very much skilled capital budgeting planners to deal with the allocation of companys funds. They allocate the funds according to the revenue generate by the projects and according to the demand of the market. They allocate more funds to highly demanded area and allocate less fund to low demanded area. For example they are printed fabrics exporter; they deal in fabrics dyeing and printing processes; Now a day they have the huge number of fabrics printing order form the European countries as compare to dyeing fabrics. As the they have the more printing order and the printing fabrics is very much profitable as compared to dyeing fabrics, therefore they are on the planning to installed the new printing plant which will add the value and increase the total annual turnover and profit of this organization. The strategic planners of this organization allocate and maintain the exact level of funds to achieve the maximum output from the companys resources. They do not let the projects to be over funded and do not remain the projects less financed but they have very efficient level of financing.

15. SWOT analysis of organization in the business sector.

SWOT analysis is the analysis of Strengths, Weaknesses, Opportunities and Threats of the organization. Strength and Weakness relate to the internal environment whereas the opportunity and threat comes from the external environment of the organization. It is the snapshot of the organization, how much the organization is internally strong and how they actively respond to its external environment. Following are the key points in each of the four components:

STRENGTHS:

Strengths are those attributes of the organization that are helpful to the achievement of the organizational objective. Following are the strengths of the Niagara Mills (Pvt) Ltds. Strong Financial System

Sufficient Availability of the funds

Well defined financial structure

Hierarchical organizational structure

Highly skilled professionals

Good management control

Aggressive marketing strategies

Strong budgeting and planning

Access to international market

Computerized processing plant

Employees training & development strategies

Attractive Brand Image

WEAKNESSES:

Weaknesses are those attributes of the organization that are harmful to the achievement of the objective. Following are the some of the weaknesses of the Niagara Mills (Pvt) Ltd. Autocratic Management Style

Tradition Organizational Structure

Stressful Company Environment

Rigid Organizational Culture

Unpleasant Behavior with Employees

Employees goals are not aligned to the organizational goals and long term objectives.

No Employees motivational programs

Less respondent to technological changes

Limited source of funds as it is a private limited company

OPPORTUNITIES:

Opportunities are external conditions that are helpful to the achievement of the organizational objectives. Following are the opportunities for the Niagara Mills (Pvt) Ltds.

Availability of National and International market

Technological support

Stable economic environment

Availability of the funds to the large extent through fluent banking system

Low interest rates

Low inflation rates

High purchase power of the people

Pleasant political situation

Business friendly environment

Customer loyalty

THREATS:

Threats are external conditions that are harmful to the achievement of the objectives of the company. The threats of the Niagara Mills (Pvt) Ltd are:

Highly competitive pressure

Substitute of the product in the market

No barrier to new firm for entering in the market

Arrival the new and advanced technological instruments

High tax rate imposed to the company

High inflation rate

Economic instabilities

Pricing range of the competing product

Demand variability

16. Conclusions:

From the above all discussions, examination and analysis we can say that Niagara mills has strong financial strength and well structured. We did the different analysis to examine the organization and also compare its one of the competitors. We conclude the following results from the above financial data:

The Niagara has strong and enough liquid ratio to meet its current obligation but decreasing with the time passing.

It has the debt ratio which was 0.58, 0.46 and 0.40 which means the company attempting to reduce its debts to minimum limit with the passage of time

Interest coverage ratio of this also improving as from 2.77 to 2.94 and impressively 4.76 in the last year 2014, which means there is, continues addition in the companys earning.

We also conclude that the companys net profit margin was 2.24% in 2012 but little decrease happened in 2013 which was 2.19% but they improve their profit to a maximum extend such as 3.43% in the last year.

Return on assets and return on equity are also decrease in second but increase sufficiently in the third year.

We also conclude that there is continues addition in the earning per share of the company.

In industry analysis we compare this organization to similar level and field of organization named as Arshad Corporation for the year of 2014. We conclude that the Niagaras net profit was 3.43% which is a good mark but when we compare it with the net profit of its competitor Arshad corporation, it was less than the profit of the Arshad corporation which is 5.71%. So the net profit of Niagara mills less by 2.28% as compare to Arshad Corporation.

In trend analysis we look at each item at profit and loss account and the balance sheet, we conclude that in some accounts there is upward trend, in some of account there is down trend but we observe the overall trend in the net profit of the organization which was fluctuating trend such as it was 2.24% in 2012, decrease in the second year to 2.19% but increase impressively in the last year 3.43%.

In SWOT analysis we conclude that the Niagara has strong financial strength but autocratic style in their internal control.

There are highly skilled worker but they have a traditional organizational structure and stressful environment in the organization etc.

17. Recommendations:

The company has to do more in many area of working to be a standard firm to others, I observe so many points which should be improve; following are some of the recommendations from my side to the company:

First of all I observe that the cost of goods sold during three examined years continuously increasing which cause a swear reduction in the gross as well as net profit of the company. So the company must to control their expenses to maximum limit which can lead the company profit increased.

I observe the Niagara has a stressful and traditional environment and the workers did not feel freedom to perform well, which must be changed.

Labor resource is the most powerful weapon of any company but this is not efficiently used in Niagara, so they have to create a democratic management style by encouraging the employees through participation.

I observe that the employees of this organization do not satisfied from their jobs as they less compensated as compare to labor market, they do not have others facilities or perquisites from the company which others company offered, therefore there is high employees turnover, which may prove very danger for the company. I recommend that the company must do more and more to satisfied their employees to achieve the high quality products and services.

I also observe that the Niagaras net profit is good but less impressive to its competitor so the company should have to minimize their expenses and try to increase their income and revenue to keep its profit equal or increase its competitor industries.

There are many other areas which must be improved but I recommend some of important points.

18. Reference & Sources used

Following are the References and Sources used to prepare this internship report.

Interview with the different head of departments individually.

Companys manual book.

www.niagaramills.com.pk Proper attending the mills for about two month period.

Other key management personnels.

Meetings with supervisors in the different production departments etc.19. Critical analysis

a. Financial analysis

Financial analysis includes the Ratio Analysis, Horizontal Analysis, Vertical Analysis, Industry Analysis and the Trend Analysis. We will go through each of them and analyze the financial data of the company.

1. Ratio Analysis:1. Short Term Solvency Ratios:These ratios provide information about a firms ability to meet its short-term financial obligations. They are of particular interest to those extending short-term credit to the firm.

a. Current Ratio:= Current Assets / Current LiabilitiesParticulars201220132014

Current Assets 1,179,689,381 1,356,391,234 1,538,903,925

Current Liabilities 1,092,177,768 1,179,199,066 1,355,789,919

Current Ratio 1.08 Times 1.15 Times 1.14 Times

We can see that the current ratio in 2012, 2013 and 2014 is 1.08, 1.15 and 1.14 respectively. The ratios difference shows that the said firm has sufficient current or liquid assets to meet its current obligation but Liquidity increased by 2012 to 2013 but there is a little bit reduction in the current ratio in 2014.

b. Quick or Acid Test Ratio:

= (Current Assets Inventory or illiquid assets) / Current LiabilitiesParticulars201220132014

Current Assets 1,179,689,381 1,356,391,234 1,538,903,925

Stock in trade 249,316,696 214,465,129 377,284,647

Stores 9,235,388 7,804,292 8,836,791

Net Current Assets921,137,297

1,134,121,813 1,152,782,487

Current Liabilities 1,092,177,768 1,179,199,066 1,355,789,919

Quick Ratio 0.84 Times 0.96 Times 0.85 Times

Here we can see the quick and liquid ratio is less than 1, so it may be little bit dangerous in case of urgently liquidation. Besides this there is a signal that the quick ratio increased from .84 to .96 in the year of 2013 but decrease in the year of 2014 from .96 to .85, so it is not a good sign.

c. Working Capital:

= Current Assets Current LiabilitiesParticulars201220132014

Current Assets 1,179,689,381 1,356,391,234 1,538,903,925

Current Liabilities 1,092,177,768 1,179,199,066 1,355,789,919

Working Capital Rs.87,511,613 Rs.177,192,168 Rs.183,114,006

Working Capital shows the value of net liquid assets to meet the day to day obligations of the company. So company has very good working capital increasing by every year from 2012 to 2014.

2. Leverage or Long Term Solvency Ratio:

Financial leverage ratios provide an indication of the long-term solvency of the firm. Financial leverage ratios measure the extent to which the firm is using long term debt and measures the degree of protection of Suppliers of Long Term Funds.a. Times Interest Earned: (Interest Coverage Ratio)= Earnings before income tax (EBIT) /Interest Expense OR

= Profit before tax + interest expense/Interest Expense

Particulars201220132014

Earnings before income tax 108,118,592 103,699,244 100,457,588

Interest expense28,359,838 33,443,406 6,390,052

Times Interest Earned 4.81 Times 4.10 Times 16.72 Times

Times Interest Earned Ratio shows the ability of company to pay interest on debt which has been financed by the company as comparing to its profit earned before income tax. So the times interest earned ratio shows that in 2012 4.81times operating profit is more over its interest payable on debt but decreased little bit in 2013 but increased so much in 2014 which is very good sign for the company to meet its interest payments on debt financing.OR

The interest coverage ratio indicates that how well company earning covers the interest payments, so interest coverage ratio has increased very much in 2014 as compared to its interest charges.

b. Debt Ratio

= Total Debt / Total Assets

Particulars201220132014

Long term loans 400,000,000 400,000,000 400,000,000

Short term borrowings 359,875,915 102,724,215 200,077,964

Total Debt 759,875,915 502,724,215600,077,964

Non-Current Assets 716,918,721 707,128,915 777,142,106

Current Assets 1,179,689,381 1,356,391,234 1,538,903,925

Total Assets 1,896,608,102 2,063,520,1492,316,046,031

Debt Ratio 0.40 % 0.24 % 0.26 %

Debt Ratio shows the percentage of debt involved in acquiring total assets. So the debt ratio is decreasing with the passage of time which means they company attempting to reduce their debt with the minimum limit as so much decreased in 2013 from 40% to only 24% and then little bit increased in 2014 by 2%. After all Companys Assets worth is much more over its debts.c. Debt-to-Equity Ratio

= Total Debt / Total Equity

Particulars201220132014

Long term loans 400,000,000 400,000,000 400,000,000

Short term borrowings 359,875,915 102,724,215 200,077,964

Total Debt 759,875,915 502,724,215600,077,964

Total Equity 100,000,000 100,000,000 100,000,000

Debt-to-equity Ratio 7.60 % 5.03 % 6.00 %

This Ratio indicates the proportion of debt and equity that company is using for its Assets Financing. The debt to equity ratio is reducing in the second year but increased a little bit more in the third year which may not be a good signal for the company because the outside debt financing increasing over share holders equity.d. Debt to Tangible Net worth Ratio:= Total Debt / Tangible Net WorthWhere as Tangible Net Worth:

= Total Assets Intangible Assets Total Liabilities

Particulars201220132014

Total Debt 759,875,915 502,724,215600,077,964

Total Assets 1,896,608,102 2,063,520,1492,316,046,031

Intangible Assets 0 0 0

Non Current Liabilities408,793,796 411,629,208414,102,722

Current Liabilities1,092,177,768 1,179,199,0661,355,789,919

Total Liabilities1,500,971,5641,590,828,2741,769,892,641

Debt to Tangible Net Worth Ratio1.26 %1.30 %1.31 %

This Ratio indicates the physical net worth of the company. It also indicates the degree of protection for creditors. Lower ratio is better for the company that indicates lower debt obligations over actual assets worth. So company has 1.26, 1.30 and 1.31 percent excess debt over its actual assets value. The percentage is not bad because it is not so much or so excess but it should be decreased with the passage of time but here the ratio is little bit increasing by every year which is not good.3. Profitability Ratio:

Profitability Ratios Profitability ratios offer several different measures of the success of the firm at generating profits. It shows that how much profitable the business is. a. Gross Profit Margin

= (Gross Profit / Sales) x 100

Particulars201220132014

Gross Profit 226,559,988 213,977,075 214,927,117

Sales 2,070,161,185 2,320,040,833 2,491,111,417

Gross Profit Margin10.94%9.22%8.63%

From the above table we can conclude the companys gross profit margin decreasing which means the cost of goods sales are increasing with the passage of time which must be controlled.b. Net Profit Margin

= (Net Profit / Sale) x 100

Particulars201220132014

Net Profit 46,388,236 50,739,188 85,409,676

Sales 2,070,161,185 2,320,040,833 2,491,111,417

Net Profit Margin2.24%2.19%3.43%

Net profit margin decreased little bit in the year of 2012 but increased from 2.19 to 3.43% in the next year which is a good sign.

c. Return on Assets

= (Net Income / Total Assets) x 100

Particulars201220132014

Net Income 46,388,236 50,739,188 85,409,676

Total Assets 1,233,701,467 1,436,335,462 1,896,608,102

Return on Assets3.76%3.53%4.50%

Return on assets decrease in the second year from 3.76 to 3.53% but increased in the year of 2012 from 3.53 to 4.50% as a good indication.

d. Return on Equity

= Net Income / Equity

Particulars201220132014

Net Income 46,388,236 50,739,188 85,409,676

Total Equity 100,000,000 100,000,000 100,000,000

Return on Equity46.39%50.74%85.41%

The return on equity continually improving as 46.39 to 50.74 and then to 85.41% which is very impressive.

4. Assets Turnover Ratio

Asset turnover ratios indicate that how efficiently the firm utilizes its assets. They sometimes are referred to as efficiency ratios or asset management ratios.A). Receivable Turnover = Annual Credit Sales / Accounts Receivable

Particulars201220132014

Annual Sales 2,491,111,417 2,821,317,530 2,622,458,050

Account Receivable 526,082,425 700,206,259 585,091,755

Receivable Turnover 4.744.03 4.48

Here is the reduction in the Receivable turnover over ratio from 2012 to 2013 but little bit increase in 2014. Where as Sales increased from 2012 to 2013 and R/a Turnover decreased, it is good sign but R/a Turnover increased from 2013 to 2014 and Sales Volume decreased, so it is not good sign.a. Average Collection Period

= Day in a Years / Receivable Turnover

Particulars201220132014

Days in a Year365.00365.00365.00

Receivable Turnover 4.74 4.03 4.48

Avg. Collection Period 77.00 90.57 81.47

There is the continuous increase in the Average collection period with the passage of time.

b. Inventory Turnover

= Cost of Goods Sold / Inventory

Particulars201220132014

Cost of Goods of Sold 1,843,601,197 2,106,063,758 2,276,184,300

Inventory (Store) 13,519,241 11,481,375 9,235,388

Inventory Turnover 136.37 183.43 246.46

The inventory turnover of the Niagara Mills continuously increasing during the examined years passing.

c. Inventory Period

= Day in a Years / Inventory Turnover

Particulars201220132014

Days in a Year 365.00 365.00 365.00

Inventory Turnover 136.37 183.43 246.46

Inventory Period 2.68 1.99 1.48

The inventory period for this company reducing with the time passing through the years.

5. Market Ratio:

Market ratios tell about the market position of the company as it indicates how much the company earns against each share etc.a. Earning Per Share

= Net Income / No of ordinary Shares

Particulars201220132014

Net Income46,388,23650,739,18885,409,676

No. of Ordinary Shares10,000,00010,000,00010,000,000

Earning Per Share4.645.078.54

Earning per share is also increasing through the passing of year which shows the company earns a handsome profit in the return of invested capital and efforts.

b. Price Earning Ratio

= Price per share / Earning per share

Particulars201220132014

Price Per Share12.0013.0015.00

Earning Per Share4.645.078.54

Price Earning Ratio2.592.561.76

Price earning ratio is also reducing with the passage of time.

c. Market to Book Value

= Market Value per Share / Book Value per Share

Particulars201220132014

Market Value12.0013.0015.00

Book value10.0010.0010.00

Market to Book Value1.201.301.50

Market to book value increasing with the passing of years which shows that the price of the companys shares increasing which is good sign to the stake holder of the company.

1. Horizontal Analysis:

Horizontal analysis is also known as base year analysis in which we the first year as base year and considered it equal to 100% percent and conclude the percentages of the each line in the different year as the percentage of the base year accordingly.NIAGARA MILLS (PVT) LTD

PROFIT AND LOSS ACOUNT

FOR THE YEARS 2012, 2013 AND 2014.

PERTICULARS201220132014201220132014

RupeesRupeesRupeesRupeesRupeesRupees

Sales 2,070,161,185 2,320,040,833 2,491,111,417 100%112.07%120.33%

Cost of goods sold 1,843,601,197 2,106,063,758 2,276,184,300 100%114.24%123.46%

Gross Profit 226,559,988 213,977,075 214,927,117 100%94.45%94.87%

Other operating income - - 50,482,030 100%0.00%0.00%

Net Gross Profit 226,559,988 213,977,075 265,409,147 100%94.45%117.15%

Distribution Cost 86,604,032 80,283,930 94,450,903 100%92.70%109.06%

Administrative expenses 20,128,379 24,671,995 28,741,857 100%122.57%142.79%

Other operating expenses 9,681,381 6,046,367 5,737,957 100%62.45%59.27%

Finance Cost 37,520,093 26,021,374 28,359,838 100%69.35%75.59%

Total Cos