If you want that report contact on this number 0333-6519686

INTERNSHIP REPORT ON
ZAHIDJEE TEXTILE MILLS LIMITED







BY

Your name
Roll #




Submitted in Partial Fulfillment of the
Requirements for the Degree of Master of Commerce






NATIONAL UNIVERSITY OF MODERN LANGUAGES,
ISLAMABAD, PAKISTAN.

August, 2014



National University of Modern Languages
Faculty of Information Technology and Management Sciences




It is hereby certified that the report has been thoroughly and carefully read and
recommended to the faculty of Management Sciences for acceptance of Final Project
Report by Your name, Roll #, Session (Sep 2012 to June 2014) Morning, in partial
fulfillment of the requirements for the degree of Master of Commerce at National
University of Modern Languages, Faisalabad.


Date: ________________

Supervisor: __________________________

Observer: ___________________________

Head of Department: __________________




i


DEDICATION




To My Loving Teachers, Friends,
& Family Members
Who have been steadfast
Supporters throughout my
M.Com with their invaluable
Love and understanding


T H A N K S T O A L L !

ii


ACKNOWLDGEMENT





Foremost, I greatly thank Almighty Allah Who has bestowed me with knowledge to
complete my report. I'm today submitting my internship report; I have the pearls of
my eyes to admire the blessings of the compassionate, omnipotent, the Merciful and
the beneficent Allah Who is the entire source of knowledge and wisdom.
I express my deep sense of gratitude to my honorable supervisor Sir.Shakil for his
dynamic supervision, inspiring attitude, illustrious advice, keen interest, constructive
criticism and elderly affection. It is with his keen supervision that I became able to
complete this difficult task quite easily.
In the end, I'll like to thank all my mentors, Mr. Imran, Mr. Farman, and all my other
fellow internees, here and in office, for their unconditional support and help.






YOUR NAME

iii


EXECUTIVE SUMMARY

Zahidjee Textile Mills Limited (the Company) is incorporated in Pakistan on July 17,
1990 as a public limited company under the Companies Ordinance, 1984. The
Company is listed on Karachi and Lahore stock exchanges.
The registered office of the Company is situated at 20 Bilal Road, Civil Lines,
Faisalabad. The weaving unit is located at Satyana, District Faisalabad and spinning
units are located at Tehsil Jaranwala, District Faisalabad in the province of Punjab.
It is a quality conscious company. The company is ISO 9002 certified. Companys
mission statement is To add value to shareholders and the economy by engaging
Profitable in textile Products. Companys value is to Conduct business as a socially
responsible corporate citizen.
I joined ZAHIDJEE Textile Mills Ltd as an Internee. The motive of joining the
ZAHIDJEE was to have an exposure of textile sector and potential to avail a sound
and promising career. I devoted my time to learn about ZAHIDJEE, which will be
beneficial to me if I join textile sector. In this 6 weeks internship program I attended
the lectures of key departments (Accounting/Finance department, export/Local
marketing department) of this knitted textile manufacturers of Pakistan. I also visited
these departments and work there according to schedule for acquiring practical
knowledge.
In this report I have given a very brief review of what I have seen during my
internship. I also mentioned about the Textile industry in Pakistan and vision of its
industry. Then I have done a detailed SWOT analysis as well as PEST Analysis.
I have made it possible to write each and every thing that I have learnt there. I have all
my practical efforts in the form of this manuscript thats the asset for my future
career.




iv


TABLE OF CONTENTS

Chapters Page
DEDICATION. i
ACKNOWLEDGEMENT... ii
EXECUTIVE SUMMEAY..... iii
TABLE OF CONTENTS iv
INTERNSHIP LATTER.. viii

CHATER NO.1 TEXTILE INDUSTRY OF PAKISTAN........................................ 1
1.1. Introduction: ........................................................................................................ 2
1.2. Free Market Mechanism: .................................................................................... 2
1.3. APTMA Vision: .................................................................................................. 3
1.4. Economic Turnaround: ....................................................................................... 3
1.5. Raw Materials: .................................................................................................... 4
1.6. High Interest Rate Regime: ................................................................................. 4
1.7. Market Access:.................................................................................................... 5
1.8. Reformed General Sales Tax: ............................................................................. 5
1.9. Pak China Investment Initiative: ......................................................................... 6
1.10. Importance of Textile Industry: .......................................................................... 6
1.10.1. Composite Textile Units: ............................................................................. 8
1.10.2. Individual Textile Units: .............................................................................. 8
1.11. Contribution to Exports: ..................................................................................... 8
1.12. Contribution to GDP and Employment: ............................................................. 8
1.13. Finishing Look and Control Components: .......................................................... 9
1.14. Need for Training Institutions:............................................................................ 9
1.15. Exhibitions: ......................................................................................................... 9
1.16. Competition: ..................................................................................................... 10

CHAPTER NO.2 ZAHIDJEE TEXTILE MILLS LTD ......................................... 11
2.1. Introduction: ...................................................................................................... 12
2.2. Company Profile: .............................................................................................. 13
v

2.2.1. Mission: ..................................................................................................... 13
2.2.2. Vision: ....................................................................................................... 13
2.2.3. Values: ....................................................................................................... 13
2.2.4. ISO Certified: ............................................................................................ 13
2.2.5. Board of Directors: .................................................................................... 13
2.2.6. Bankers of the Company: .......................................................................... 13
2.2.7. Audit Committee: ...................................................................................... 13
2.2.8. Company Secretary/ Chief Financial Officer: .......................................... 14
2.2.9. Registered Office: ...................................................................................... 14
2.2.10. Share Registrar: ......................................................................................... 14
2.2.11. Auditors: .................................................................................................... 14
2.3. Mills: ................................................................................................................. 14
2.3.1. ZAHIDJEE Spinning Unit-1: .................................................................... 14
2.3.2. ZAHIDJEE Spinning Unit-2: .................................................................... 14
2.3.3. ZAHIDJEE Weaving Unit: ........................................................................ 15
2.3.4. ZAHIDJEE Stitching Unit: ........................................................................ 15
2.4. Departments of ZAHIDJEE: ............................................................................. 16
2.5. Machinery: ........................................................................................................ 17
2.6. Property, Plant And Equipment: ....................................................................... 18
2.7. Share Capital: .................................................................................................... 18
2.7.1. Authorized Capital:.................................................................................... 18
2.7.2. Issued, Subscribed And Paid Up Capital: .................................................. 19
2.8. Financial Results: .............................................................................................. 19
2.9. Balance Sheet: ................................................................................................... 20
2.10. Quality Insurance: ............................................................................................. 21
2.10.1. Certification: .............................................................................................. 21
2.10.2. Quality Assurance Department:................................................................. 21
2.10.3. Quality Control Lab: .................................................................................. 22
2.10.4. Quality Policy: ........................................................................................... 22
2.11. Leading factors: ................................................................................................ 23

CHAPTER NO.3 STRUCTURE AND DEPARTMENTS ..................................... 24
3.1. Organizational Chart: ........................................................................................ 25
3.2. Production, Planning and Control Department: ................................................ 26
vi

3.2.1. Quality Control: ......................................................................................... 26
3.2.2. Quality Assurance Department:................................................................. 26
3.3. Merchandising Department:.............................................................................. 27
3.4. Industrial Engineering Department: .................................................................. 27
3.4.1. Standard Allowed Minutes (SAM): ........................................................... 28
3.4.2. Measuring Efficiency: ............................................................................... 29
3.4.3. Measuring Performance: ............................................................................ 29
3.5. Marketing Department: ..................................................................................... 29
3.5.1. Market Segmentation:................................................................................ 29
3.5.2. Research Process: ...................................................................................... 29
3.5.3. Pricing Strategy: ........................................................................................ 30
3.5.4. Customer Retention: .................................................................................. 31
3.6. I.T Department: ................................................................................................. 31
3.7. Human Resources: ............................................................................................ 32
3.7.1. Leadership Style: ....................................................................................... 33
3.8. Finance Department: ......................................................................................... 33
3.8.1. Financial Management: ............................................................................. 33
3.8.2. Hierarchy Chart of Finance: ...................................................................... 35
3.9. Accounts Department: ...................................................................................... 36
3.10. Forwarding Department: ................................................................................... 36
3.10.1. Functions of Forwarding: .......................................................................... 37
3.10.2. Mode of Transportation: ............................................................................ 37
3.10.3. Bill of Lading: ........................................................................................... 37
3.10.4. Commercial Invoice: ................................................................................. 38

CHAPTER NO.4 MY INTERNSHIP PROGRAM ................................................ 39
4.1. Introduction of the Head Office: ....................................................................... 40
4.2. Starting and Ending Dates: ............................................................................... 40
4.3. Names of the Departments and Training Duration: .......................................... 40
4.4. Finance /Accounts Department: ........................................................................ 40
4.4.1. Sequence of Work: .................................................................................... 41
4.4.2. Exchange Rate: .......................................................................................... 42
4.4.3. Insurance: ................................................................................................... 43
4.4.4. Vouchers: ................................................................................................... 43
vii

4.4.5. Bank Voucher/ Bank Account Transfer: ................................................... 44
4.4.6. Payment Voucher: ..................................................................................... 44
4.4.7. Credit Voucher: ......................................................................................... 45
4.4.8. General Voucher: ....................................................................................... 45
4.4.9. Cash Book: ................................................................................................ 46
4.4.10. Bank Book: ................................................................................................ 46
4.4.11. Bought Day Book: ..................................................................................... 47
4.4.12. Sales Day Book ......................................................................................... 48
4.4.13. Expenses Account: .................................................................................... 49
4.4.14. Internal Audit Department: ........................................................................ 49
4.5. Export / Local Marketing Department: ............................................................. 51
4.5.1. Export Department: ................................................................................... 51
4.5.2. Export Process: .......................................................................................... 51
4.5.3. Import Department: ................................................................................... 56
4.5.4. Local Sales Department: ............................................................................ 56
4.6. Personal Comments about Departments: .......................................................... 57

CHAPTER NO.5 PEST AND SWOT ANALYSIS ................................................. 58
5.1. PEST Analysis: ................................................................................................. 59
5.1.1. Political Factors: ........................................................................................ 59
5.1.2. Economic Factors: ..................................................................................... 60
5.1.3. Social Factors: ........................................................................................... 60
5.1.4. Technological Factors: .............................................................................. 61
5.2. SWOT Analysis: ............................................................................................... 62
5.2.1. Strengths: ................................................................................................... 62
5.2.2. Weaknesses: ............................................................................................... 64
5.2.3. Opportunities: ............................................................................................ 65
5.2.4. Threats: ...................................................................................................... 65

CHAPTER NO.6 CONCLUSION AND RECOMMENDATIONS ...................... 67
6.1. Conclusion: ....................................................................................................... 68
6.2. Recommendations: ............................................................................................ 69
References ................................................................................................................... 71

viii

1












1. CHAPTER NO. 1
TEXTILE INDUSTRY OF PAKISTAN

2

1.1. Introduction:

According to Government of Pakistan Ministry of Textile Industry (MoIT, 2014) the
textile sector in Pakistan has an overwhelming impact on the economy, contributing
57% to the countrys exports. In todays highly competitive global environment, the
textile sector needs to upgrade its supply chain, improve productivity, and maximize
value-addition to be able to survive. The objectives of the Textile Industry Division
are to formulate strategies and program to enable the textile sector to meet these
challenges and attain global competitive.
The textile industry of the country way back in 1957 organized itself into what
became the premier textile industry association of the country. 100% of the countrys
textile exports and more than 50% of the countrys clothing exports emanate from
Member Mills that constitute the All Pakistan Textile Mills Association (APTMA).
The textile industry is the mainstay of our economy. It contributes 8.5% to GDP and
employs over 40% of the manufacturing sector workforce. Besides, the spinning
industry being the sole consumer of cotton worth $5 billion, sustains the largest cash
crop of the Pakistan.

1.2. Free Market Mechanism:

Consequent to Pakistans accession to the World Trade Agreement, the countrys
trade economy has been integrated with global trade that operates on the principle of
free and open international trade. This is particularly true of Pakistans textiles and
clothing sector, that was integrated into the upcoming $800 billion international
textiles and clothing trade. The international textiles and clothing market is intensely
competitive and operates on very low margins. Any sector or segment has to be
competitive enough to survive in the quota-free world of international trade. With an
eye on the characteristics and requirements of the WTO regime and to be able to
compete therein, the spinning industry made $ 3.5 billion investments since the quota-
regime of ATC was done away with in favor of open and free international trade.
It is noteworthy that the spinning industry operates in a free competitive environment
especially with regards to the use and availability of raw materials. It procures 11.5
million bales domestically and 3 million bales from the international market on
3

international terms. International procurement became necessary due to insufficient
cotton crop since last ten years. It is therefore perfectly legitimate for it to expect the
latitude to market and sell its products in the international market on the same
principles. Having done so much to attain international competitiveness, the free
market mechanism is at the heart of our interest and philosophy.
The free market regime enabled a significant resource transfer to the farm sector on
account of cotton sale proceeds at international prices. As a result an additional Rs.
200 billion has been transferred to the agricultural sector this year. Textile exports
have also increased in proportion and likely to maintain the momentum by increasing
up to $ 4 billion this year.

1.3. APTMA Vision:

In keeping with its resolute determination to realize its vision, the textile industry
performed to improve its performance thereby enabling it to re-invest its earnings in
productive assets. We visualize an export potential of $ 25 billion by 2014 with an
investment of $ 2 billion per annum resulting in creation of job opportunities for a
work force of one million and an increase in exports by $4 billion (APTMA, 2014)

1.4. Economic Turnaround:

There is a dire need to fast-track the economy. A beginning has to be made involving
at times painful and difficult decisions. Enabling conditions would have to be
provided for increasing production, exports and employment opportunities. The
primary prerequisite for all these is investment. Investment in industry is urgently
required to impart inherent strength to the economy and confer on it the resilience to
manage shocks and in the long term cure the economy of inflationary propensities and
the like. There is an inverse relationship between industrial investment and interest
rates. High interest rates while keeping inflation low have always disabled investment
in industry. For achieving an economic turnaround a special line of credit for industry
at internationally competitive interest rates is imperative.

4

1.5. Raw Materials:

Competitive availability of quality raw materials, cotton as well as man-made fibers is
very important for the textile industry. Acclaimed technology for production of
genetically modified, high yielding and pest-resistant cotton should be adopted to
meet the persistent shortage of cotton and the growing gap between consumption and
production.
APTMA is funding cotton research by contributing Rs. 250 million as research on
cotton and this contribution is being increased by 250%. There is need for cotton
research management to be re-structured to involve farmers and the industry in a
meaningful way.
The development of the textile industry is restricted by the low use of Man-Made
Fibers in the fiber-mix. Our MMF and cotton use ratio is 20:80 as against the world-
wide 60:40 use. Correction of our fiber-mix ratio will bring about qualitative
improvement to our product range as well as broaden the range itself. Towards this
end it is imperative that
All duties on import of MMF be done away with altogether.
In-operational domestic capacity be revived without delay and
New investment encouraged so that MMF shortage is overcome.

1.6. High Interest Rate Regime:

An internationally competitive interest rate regime is a must for present investment to
bear fruit and for not deterring new investment inflow. There is an inextricable link,
an inverse relationship between investment and interest rates. Investment in the textile
industry increased during the period the interest rates were low and decreased with
rise in interest rates. Also, with rise in interest rates there came about an increase of
non-performing loans. Negative fallout of higher interest rates was the whittling down
of exports. In spite of the fact that the textile industry installed sizable additional
capacity to create exportable surplus, textile exports either declined or stagnated, both
in quantity terms as well as value-wise. Thus, low interest rates are conducive to
investment inflows. The international bank rate prevalent presently is not more than
2%. In the circumstances our interest rates of around 15% are not viable and good
5

enough for any investment to come about. Under the Textile Investment Support Fund
(TISF) a special interest rate comparable with the international interest rate would
encourage new investments. Regional competitors, from 2005 onwards induced
investment to develop sizable capacity and as a result the textile exports of our
principal competitor increased from $ 12 billion to $ 30 billion. The instrument used
was the Technology Up-gradation Fund Scheme (TUFS) that provided for a remission
of interest rate up to 50% for investment. Similar schemes visualized here did not
materialize because of the characteristic gap between policy and implementation.

1.7. Market Access:

Better market access is important for the export oriented textile industry. The mind-
set of our western trading partners has to be changed. They view market access to
Pakistan as a kind of charity or concession extended unilaterally and gratuitously.
These countries are not sensitized to the burden that industry in Pakistan bore and is
bearing in terms of disarrayed infrastructure, strained economy, dislocation of normal
working conditions, lost exports and ironically uncharitable travel advisories, on
account of Pakistan undertaking the war on terror. Developed countries should see
widening of market access to Pakistan as a reciprocal measure for what has already
been borne by the country and its industry for a cause that is dear to all right-thinking
humanity and is as much international as it is national. I think we do not accept that
market access to Pakistan as a unilateral gesture. We ask for the due, the consideration
for which has already been made.

1.8. Reformed General Sales Tax:

I do not hold any opinion against the levy of Reformed General Sales Tax (RGST).
Rather I feel that this levy will bring on board other sectors to share the responsibility
of contributing to the exchequer, hitherto being borne by industry. My concern is with
respect to the over Rs. 517 billion of the textile industry funds that will remain stuck
as non-productive asset awaiting refund as 85% of the textile industrys produce is
exported. It is oppressive that for collection of Rs.25 billion tax on domestic
consumption, the industry be saddled with a burden of Rs. 517 billion (APTMA,
6

2014). For this reason the zero-rate tax regime for sectors from ginning to garmenting
should be continued for Pakistani textiles to remain competitive in the international
market. Previous imposition of 15 percent sales tax on industry proved a failure and
the government zero rated the export-oriented industry after realizing that refunds
were far in excess of collection of the sales tax.
Unprecedented increase in cotton prices has already impacted the textile industry.
Therefore, it cannot sustain additional liquidity requirement of 15 percent under the
RGST. Banks are reluctant to finance textile industry to procure swelling cotton
prices and the SBP regulations do not allow financing of sales tax part.
There were difficulties in obtaining adjustments/refunds against sales, as the spinning
industry procures cotton in three months and consumes it during twelve months to
manufacture and sell yarn to the weaving and knitting industry.

1.9. Pak China Investment Initiative:

Chinas current progress in textiles and the continuing shift of its focus on
downstream sectors gives an opportunity to Pakistan to fill up the area in spinning and
weaving being vacated by China. This is an opportunity that should not be missed.
Spinning and weaving industry of Pakistan must take benefit of the rapid economic
progress of China and enable synergies of operation to be achieved.
They are committed to the progress and prosperity of Pakistan and will continue to
exert themselves for making Pakistan a vibrant and self-reliant economy.

1.10. Importance of Textile Industry:

The textile industry is considered as the cash cow for the economy of Pakistan. As
mentioned in Pakistan Textile Journal (2013). Textile and clothing exports are about
60% of the total exports from Pakistan. Pakistan is the 8th largest exporter of textile
products in Asia. This sector contributes 8.5% to the GDP and provides employment
to about 15 million people i.e. 30% of the 49 million workforce of the country.
Pakistans share is around one percent in the volume of total world textile trade of
about US$18 trillion per annum. Pakistan is the 4th largest producer of cotton
7

(~12mln bales/yr), with the third largest spinning capacity in Asia after China and
India.
The textile sector contributes 5% to the global spinning capacity. Since the founding
of Pakistan, the development of the Manufacturing Sector has been given the highest
priority with major stress on Agro-Based Industries. For Pakistan which was one of
the leading producers of cotton in the world, the development of a Textile Industry
making full use of its abundant resources of cotton has been a priority area towards
industrialization. At present, there are 1,221 ginning units, 442 spinning units, 124
large spinning units and 425 small units which produce textile products reported by
(ESP, 2010).
The textile industry of Pakistan is facing crisis due to many challenges. Electricity
break downs, gas load-shedding, unsatisfactory law and order situation, terrorism,
target killing and high cost of production are some of the major problems being faced
by the textile and other industries. Apart from this, less concern for quality, inefficient
and obsolete system to carry on production and lack of customer focus is a grave
reality.
Foreign importers of garments and textile products are unwilling to visit Karachi,
Lahore and Faisalabad to inspect the quality of textile products offered for vending.
Instead they suggest Dubai, Colombo and Dhaka as places for such visits. It is also
reported that several manufacturers are considering shifting of their production
facilities to Bangladesh, Sri-Lanka and other countries.
With limitations to all these problems the textile sector of Punjab still gives 70% of
the revenues generated by textile sector of the country. The textile products are
consumed world over and its quality has been a burning issue, so, quality initiatives
are always needed to establish and maintain the business generated through textile
around the globe as mentioned on the website of Faisalabad Chamber of Commerce
and Industry (FCCI).
In the Economic Survey of Pakistan (ESP, 2010) it is repeatedly emphasized that
business environment of Pakistan is best reflected in the SME Sector. The better this
sector performs the higher would be the quality of goods and services in Pakistan. As
textile units of small, medium and large scale are equally included in the population
of this study the proportion of SMEs is more as compared to large scale businesses. In
the textile industry, product quality is calculated in terms of quality and standard of
8

fibers, yarns, fabric construction, color fastness, designs and the final finished packed
product.
When investigating the type and impact of quality tools and practices applied to
textile units are being discussed their composition cannot be ignored. There are two
forms of textile manufacturing set ups in Pakistan namely composite and individual.

1.10.1. Composite Textile Units:
In the earliest years of independence till 1950s and 60s such type of plants were
installed to make yarn, weave raw cloth or finished cloth, dyeing and stitching all
done in one plant setup and location. This was done mainly to overcome the problems
of capital shortage and expertise required to do each work in independent settings.

1.10.2. Individual Textile Units:
Soon after the government provided incentives and keeping in view the availability of
labor, comparative advantage of various locations, development of infrastructure etc.,
individual textile units were formed and proved more profitable and efficient.
Nowadays, spinning plants, weaving plants, knitting plants, dyeing plants and
stitching units are working individually with varying capacities.

1.11. Contribution to Exports:

According to recent figures, the Pakistan textile industry contributes more than 60%
of the countrys total exports last year, Pakistan exported around $13 billion worth of
textile products, The industry contributes around 46% to the total output produced in
the country. In Asia, Pakistan is the 8th largest exporter of textile products.
All Pakistan Textile Mills Association (APTMA) Chairman Yasin Siddik said that the
countrys (textile) exports can hit $15 billion in fiscal 2013-14

1.12. Contribution to GDP and Employment:

Textile being largest industrial sector generates the countrys highest export earnings
of about 55%; providing the bulk of employment (39%), and contributes 8.5% to
GDP.
9

1.13. Finishing Look and Control Components:

The products manufactured locally, when displayed against foreign goods -offer a
poor look primarily because of the unsightly finishing of welding seams,
electroplating, painting and other surface treatments. In addition, the adoption of
wrong design parameters, or the attempt to reduce the cost of production, lead to the
incorporation of under-sized electrical motors and electrical / electronic control
panels.

1.14. Need for Training Institutions:

Diploma Level Courses on the pattern of Pak-Swiss Training Centre in Karachi
should also be opened in the Textile Institutions in Faisalabad and Karachi and more
such courses should be introduced in the Polytechnics in areas like Multan,
Hyderabad, Lahore and Gujranwala

1.15. Exhibitions:

Most of these small workshops are shy or afraid of getting registered or displaying
their products, mainly from the fear of the revenue collection, labour controlling and
other government regulating agencies. This fear keeps them away from the
mainstream Industry. This also leads to the lack of interaction among the small scale,
medium scale and higher level industry for a purposeful vendor development.
National Exhibitions held annually can be very helpful in bringing out the skills, the
range of products and opportunities of group collaboration. It will help the planners
and large scale engineering industry in defining the way for developing skills in order
to make this sector strong and viable. The interaction between the foreign textile
manufacturing industries could also be enhanced by facilitating the indigenous Textile
Engineering Industry to participate in the specialized Exhibitions and fairs being held
in those countries



10

1.16. Competition:

Pakistan must compete with other producers similar in conditions and comparative
advantage. The Pakistani Textile industry's biggest competitors are China, India,
Bangladesh, Indonesia and Turkey. The cost of power in Pakistan is comparatively
high.

11












2. CHAPTER NO. 2
ZAHIDJEE TEXTILE MILLS LTD

12

2.1. Introduction:

Zahidjee Textile Mills Limited (the Company) is incorporated in Pakistan on July 17,
1990 as a public limited company under the Companies Ordinance, 1984. The
Company is listed on Karachi and Lahore stock exchanges. The principal business of
the Company is export of all kinds of value added fabrics and textile made-ups. The
Company is also engaged in the business of manufacturing and sale of yarn. The
financial statements are presented in Pakistani Rupee, which is the Company's
functional and presentation currency.
ZAHIDJEE has been the name of one of the most innovative textile producers. Today
ZAHIDJEE is one of the leading producers of textiles. Their technical perfection,
quality standards and innovative impact are unique. ZAHIDJEE has become one of
the leading symbols of quality products in the textile industry.
ZAHIDJEE Textile Mills Limited had installed the Latest Machinery with capacity to
produces Premium quality Fabric Pc And Cotton which highly recommended for
export purposes state of the art textile spinning are based on the best available
technologies in Pakistan and international market. Their technology partners Is Reiter
who is famous for providing the High quality spinning integrated installation systems,
which enables the produce high premium quality Fabric for the local and the
international market. Their Plants are in centrally dust proof environment and they
maintained quality standard for working strengths of people.
The Company's projects of spinning and weaving units are under implementation. The
Board of directors of the Company has resolved to issue right shares @160% at par
(Rs. 10 per shares) i.e. 16 ordinary shares for 10 ordinary shares to finance the new
projects.
Pursuant to scheme of arrangement approved by the Honorable Lahore High Court,
Lahore, assets, liabilities and reserves of ZAHIDJEE Fabrics Limited were merged
with the assets, liabilities and reserves of ZAHIDJEE Textile Mills Limited with
effect from July 01, 2006.




13

2.2. Company Profile:

2.2.1. Mission:
To add value to shareholders and the economy by engaging Profitable in Textile
Products.

2.2.2. Vision:
To be and remain quality leader and competitive in the international market.

2.2.3. Values:
To conduct business as a socially responsible corporate citizen.

2.2.4. ISO Certified:
An ISO 9001-2000 Certified Company.

2.2.5. Board of Directors:
Mr. Muhammad Zahid Chairman / Chief Executive
Mst. Huma Zahid
Mst. Fauzia Shahani
Mst. Shaista Balquees
Mr. Muhammad Amjad
Mr. Muhammad Nawaz
Mr. Muhammad Jamshaid

2.2.6. Bankers of the Company:
Allied Bank Limited
Faysal Bank Limited
National Bank of Pakistan
The Bank of Punjab
United Bank Limited

2.2.7. Audit Committee:
Mst. Huma Zahid (Chairman)
14

Mst. Shaista Balquees
Mr. Muhammad Amjad

2.2.8. Company Secretary/ Chief Financial Officer:
Mr. Shahab-Ud-Din Khan

2.2.9. Registered Office:
20, Bilal Road,Civil Lines, Faisalabad

2.2.10. Share Registrar:
Consulting One (Private) Limited 478-D Peoples Colony No.1
Tel: + 92-41-8541165/8541965
Fax: + 92-41-8542765

2.2.11. Auditors:
Avais Hyder Liaquat Nauman Chartered Accountants Faisalabad

2.3. Mills:

2.3.1. ZAHIDJEE Spinning Unit-1:
ZAHIDJEE Textile Mills Ltd Unit-1 is located at 32 KM. Sheikhupura Road, District
Faisalabad in the Province of Punjab, Pakistan. ZAHIDJEE Textile Mills Limited
Spinning Unit-1 has (516) spindles with capacity of producing best quality yarn,
which highly recommended for export purposes. The state of the art textiles
spinning are based on the best available technology in the international market.
Their technology partner is Reiter who is famous for providing quality spinning
integrated installation systems, which enable them to produce premium quality yarn
for local and international market.

2.3.2. ZAHIDJEE Spinning Unit-2:
ZAHIDJEE Textile Mills Ltd Unit-2 is located at 32 KM. Sheikhupura Road, District
Faisalabad in the Province of Punjab, Pakistan. Modernization efforts have brought
major changes to the Pakistan textile industry, spinning is core of it. ZAHIDJEE
15

Spinning Mills have state of the art spinning facilities covering complete sphere of
yarn manufacturing including ultramodern automated set up with high speed ring
frames.
In their mills, opening of cotton bales till packing of yarn all is fully automated, even
their quality control is responsible to make sure uniform blend of fiber. To ensure,
new high speed automated feeding equipment, performs at peak efficiency and fiber
properties are consistent.

2.3.3. ZAHIDJEE Weaving Unit:
ZAHIDJEE Weaving is located at 32 KM. Satiana-Tandalian wala Road, District
Faisalabad in the Province of Punjab, Pakistan. ZAHIDJEE have an extensive
weaving set up having variety of machines. A team of competent, experience and
skilled professionals including textile and mechanical engineers in weaving division
work together to make quality products for customer. The company has facility to
stock grey fabric and maintains inventory of 15 20 Millions meters fabric for its
regular customers in both smaller to wider widths. The fabric is prepared under
comprehensive quality control parameters based on Four Points Inspection system.
It operates right from raw materials in put quality level to the end product according
to the requirements of their worthy customers. The prime objectives are to provide
quality products and to ensure on time deliveries.

2.3.4. ZAHIDJEE Stitching Unit:
ZAHIDJEE Stitching unit is located at 08 KM. 5 Puli Road, Near Isemil Masjad,
District Faisalabad in the Province of Punjab, Pakistan. ZAHIDJEE operating one of
the largest cut and sews facility in the industry requires perfection of skills, superb
hands on management and ultra dedication which can only come with a passion for
quality and timely performance ZAHIDJEE dedicated units for bedding, quilting,
curtains and table linen satisfy the most discerning customer demands for perfection
and performance. The Stitching unit is spread over 500,000 square feet of land
comprising of over 600 Stitching Machines, 24 Quilting Machines, Machines to
produce wadding for comforter fills and furthermore provides us with the capability
of converting 1.5 million meters of fabric into a wide variety of finished products
every month.

16

2.4. Departments of ZAHIDJEE:

Department Function
Accounts Department To prepare monthly, quarterly and annual accounts,
Costing, Budgeting & Forecasting. To handle payable
and insurance, L.Cs, Inventory & Stores etc.
Finance Department Arranging Finance and negotiate over coat of finance, To
handle sale, receivable, debtor aging, cash and bank etc.
Internal Audit To monitor the implementation of internal procedures,
policies, internal control systems and report any
violation. Detection and control of financial risk and
frauds.
Information Technology
Department
Development of oracle base program, Networking,
Hardware Maintenance.
Administration
Department
Dealing stakeholders in general issues.
Human Resource Hiring new manpower, satisfaction, Motivation,
Appraisals etc.
Production Department To undertake production activity and maintain desired
production volume
Electrical & Instrument Maintain and economies electricity consumption,
Installation and maintenance of Electrical & Electronics
Instruments
Mechanical Department Installation and maintenance of plant and machinery.
Quality Control Maintain quality and dealing with complaints
Marketing & Sale To increase existing demand, to work as an
organizations intelligence in the large outer
environment, customer satisfaction, advertisement,
smooth dispatch, rationing of products in case of excess
demand



17

2.5. Machinery:

S.No Machinery Description MAKE ORIGIN MODEL
01 Complete blow room Auto
plucker
China 2000
02 Complete cards Rieter Germany 2005
03 Drawing high speed breaker (SB-
D15)
Rieter Germany 2005
04 Drawing high speed finisher
(RSB-D35)
Rieter Germany 2005
05 Simplex (Fly frame) TJFA 458 China 2005
06 Combers with Unilap E7/5 Rieter Germany 2005
07 Ring Spinning Frame
F1520(Jingwei)
Rieter China 2005
08 Ring Spinning Frame EJM-
168(Shangai )
Rieter China 2005
09 Auto cone Murata process Coner
steel drum spindle (60) C-
21(Murata)
21-c
Murata
Japan 2005
10 Compressor Sanco Compare
11 Compressor Meji Compare
12 Compressor Boge-1 Compare
13 Complete Air Conditioning Haji
Bashir
Comp Pakistan 2006
14 Uster UT4-Se (Semi Automatic)
Uster Autosorter UAS-4
Micrograph Model 730
Micronaire Model 775
Stelometer model 754
Swiss 2005



18

2.6. Property, Plant And Equipment:



Un-audited Audited
December 31, June 30,
2013 2013
Rupees Rupees
Operating assets 1,841,724,748 1,803,479,859
Capital work in progress 334,935,877 129,762,588
Advance against purchase of :
Land 7,398,000 12,000,000
Plant and machinery 49,513,193 ____________
2,233,571,818 1,945,242,447



2.7. Share Capital:

2.7.1. Authorized Capital:




Audited Un-audited Un-audited Audited
June 30, December 31, December 31, June 30,
2013 2013 2013 2013
Number of Shares Rupees Rupees
60,000,000 135,000,000 @ Rs. 10/- each 1,350,000,000 600,000,000









19

2.7.2. Issued, Subscribed And Paid Up Capital:


Audited Un-audited Un-audited Audited
June 30, December 31, December 31, June 30,
2013 2013 2013 2013
Number of Shares Rupees Rupees
11,009,300 11,009,300 @ Rs. 10/- each 110,093,000 110,093,000
23,041,604 23,041,604 @ Rs. 10/- each 230,416,040 230,416,040
6,810,180 @ Rs. 10/- each 68,101,800
6,810,180 8,172,216 @ Rs. 10/- each 81,722,160 68,101,800
40,861,0814 49,033,300 490,333,000 408,610,840


2.8. Financial Results:

The salient features of the companys financial performance are given
Half year ended December 31,
2013 2012
Rupees Rupees
Sales 3,085,868,398 1,967,767,637
Gross Profit 417,378,393 292,603,746
Pretax profit 246,934,756 178,688,118
After tax profit 170,069,468 120,953,377
Earnings per share - Basic and diluted 3.47 2.96

There is significant hike in net profit for the half year compared to corresponding
period. This is mainly due to increase in sales volume and strict monitoring of
operating expenses. The sales volume increased due to splendid market strategy
coupled with high quality standards of production.
Profit before tax is Rs. 246,934,756/- as compared the profit of Rs. 178,688,118/- of
the corresponding period of last year.


20

2.9. Balance Sheet:



21

2.10. Quality Insurance:

2.10.1. Certification:
Globalization has lead to mass awareness of Social Accountability at all levels. The
reputation of Corporate and Government bodies are often adversely affected due to
inadequate work-place conditions. Accountability and compliance to legal norms are
world-wide concerns, and ZAHIDJEE Mills ensure compliance with international
standards and Labor Laws.
Our key Social Compliance Aspects are:
ISO 9002 Certified
Oko-Tex Standard 100
BSCI (Business Social Compliance Initiative)
Child Labor
Health and Safety
Compensation
Working Hours
Discrimination
Disciplinary Practices
Freedom of Association
Environmental Conditions
Management Systems
2.10.2. Quality Assurance Department:
The QA phase (Final Inspections) is what separates them from their competitors and
what keeps customer satisfaction. ZAHIDJEE QAs ensure that a product being
developed is meeting specified requirements. ZAHIDJEE system is said to increase
companys credibility and improve work processes and efficiency with supremacy of
customer agreed standards.
Final Inspection:
The pre-shipment final inspection takes place when the merchandise is
completed, packed, and ready for shipment. Nothing goes/shipped W/O
inspection. Inspection is done with view to ensure that the contract
22

specifications are met. Seven established procedural steps guarantee the
accuracy of inspection.
Fabric Inspection:
Random Fabric inspections based on 4-point system. Color coding for easy
understanding and identification on fabric rolls. Every Shipment is released
after issuance of system generated QA container certificate.
Accessories Inspection:
They have unique accessories quality system. Only quality conformed
accessory items get to stores and production units. Non-conforming items are
automatically sent out of factory.

2.10.3. Quality Control Lab:
All divisions within ZAHIDJEE Group are equipped with modern and highly-
sophisticated Quality Control Labs which ensures the quality and reliability of every
product. Latest precision testing instruments and modern equipment assures that
specific customer standards are met.
The highly-qualified and experienced Quality Assurance Engineers and staff are
strictly monitored and are regularly trained to ensure that they are able to cope with
ever-increasing quality standards and changing customers demands. From the
acquisition of raw cotton to production of yarn, to grey cloth, to finishing, to final
product each and every step is stringently tested and verified by the Quality Control
Lab to ensure product quality at every stage.
The Quality Control Labs and the staff are also certified and accredited through
various national and international institutes, organization and QA bodies.

2.10.4. Quality Policy:
Quality is one of our most important ingredient responsible for the incredible growth
of ZAHIDJEE Group over the past many years. A team of highly skilled, professional
and qualified QA engineers contributes efficiently towards achieving the superior-
quality of products that ZAHIDJEE Group is known for. They have a track record of
not only achieving but exceeding their clients expectations throughout the world
from multinational buying houses to large chains of superstores.

23

Their Quality Policy states that they:
Constantly strive to improve our internationally recognized quality assurance
system.
Periodically review and accordingly upgrade our technology, systems,
procedures and machinery to meet the ever changing demands of quality and
cost.
Ensure the reliability, durability and quality of each and every product that is
produced by ZAHIDJEE Group for each and every client.
Strictly monitor, review and evaluate the performance of our supply chain.

2.11. Leading factors:

Well trained sales staff
Highly skilled computer designers
Latest label weaving, soft wares
Latest machinery for die cut & badges
More than 40 high speed woven label machines
In house dyeing facility
Top quality raw material
Skilled and efficient staff
Strict ISO 9001: 2000 management and quality control system
And a lot of other aspects assist them to maintain their goodwill in
local and International market.


24











3. CHAPTER NO 3
STRUCTURE AND DEPARTMENTS

25

3.1. Organizational Chart:





CEO

Director
Manager
Purchase
Import
Manager
Local
Purchase
Manager
Manager
Finance
Marketing
Manager
Export
Manager
Manager
Accounts
Director
Manager
Processing
Manager
Printing
Manager
Dyeing
Chief
Engineer
Mechanical
Engineer
Electrical
Engineer
Quality
Assurance
Manager
Quality
Coordinator
26

3.2. Production, Planning and Control Department:

As the name of department shows that these people are responsible for management
of production. This department, after merchandiser get approval for bulk production,
starts planning the production. The PPC department plans everything according to the
Teck-Pack. The planning includes that in how much time period we have to ship the
production. The planning includes
Accessories Planning
Here they plan about the buttons thread and such kind of indirect
material for the production.
Fabric Planning
Here they plan about the fabric quantity, quality and lead time in
which they should have fabric to make garments.
Under both accessories and fabric planning they chose those suppliers who provide
them quality products at right time at lower costs.
They plan that how much workers, machines and time is required to produce certain
production.

3.2.1. Quality Control:
This is the department which can be said as an agent from ZAHIDJEE LTD side
which checks the required parameters and recommends solution at each level of
process. It has two sections;
Grey Section
Which checks the fabric for faults,
Line Section
This section checks the finished and dyed fabric for faults according to
requirements.

3.2.2. Quality Assurance Department:
This department is also responsible for making the products quality oriented. This
department audits the fabric according to military standards. On completing the audit
this department issued different type of slips to the concern unit. These slips include

27

Green Slip
This slip is issued when the packing and finishing is according to
requirements.
Yellow Slip
This slip is issued when there is any discrepancy in the packing
requirements.
Pink Slip
This slip is issued when there is any discrepancy in the finishing
requirements.
This issuance of slip does not have any effect on the appraisal of the concern
department but these slips surely affect the respect of concern department. Sometimes
if there is big difference in the product and requirements then penalty may be imposed
on the concern production unit.

3.3. Merchandising Department:

ZAHIDJEE merchandising department is very active. It performs marketing
functions. As ZAHIDJEE is a marketing oriented company so this department has to
play a vital role in company. Basic objective of merchandising department is to take
orders from existing customers and to attract new customers. It locates the new
customer by exhibitions and by providing samples to the potential customers. It is
most important responsibility is to satisfy customers by providing quality products
and timely delivery.

3.4. Industrial Engineering Department:

Branch of engineering to increase productivity by using all resources i.e. human,
capital, land and entrepreneurship
I.E believes in that there should be place for everything and everything in place.
I.E has three divisions.
28



Industrial engineering techniques are applicable everywhere, starting from a small
Office, home, training places, small industry to a large industry.
It helps in:
1. Better layout planning.
2. Designing work aids.
3. Re structuring an organization/ Re engineering
4. Methods improvement.
5. Training in better methods
6. Setting SAMs for the better methods
7. Problem solving using studies by scientific methods
Advantages:
1. Managing extra work in the same available space.
2. Vacating extra premises got on rent.
3. Increased output with the same manpower and machines.
4. Increased quality due to better managing/methods
5. Reduced throughput /cycle time, using refined layouts.
I.E performs following functions:

3.4.1. Standard Allowed Minutes (SAM):
This is the time which is required to perform specification. This is an
important task because it tells that in how much time production will be
produced.
SAM is calculated as follow
SAM = (Avg. single time * Rating)/Basic Time + (Person and Machine Delay)
+Bundle Handling Time (BHT)

INDUSTRIAL
ENGINEERING
MACHINE
SHOP
TRAINING
CENTER
PROCESS
IMPROVEMENTS
29

3.4.2. Measuring Efficiency:
Efficiency of workers is measured as follows:
((Output * SAM) / Shifts Minutes * No. of Machines) * 100

3.4.3. Measuring Performance:
Performance of worker is calculated as follows:
((Output * SAM) / (Clock Time * No of Machines))*100

3.5. Marketing Department:

Marketing department of ZAHIDJEE Ltd is involved in following activities and
procedures.

3.5.1. Market Segmentation:
As everyone knows that with the help of information technology whole world
becomes a market. But the needs & wants of the people of different countries are
different. They have different cultures, beliefs, values which directly affect their needs
& wants. It is not possible that a product prepared for the Pakistan will be suited for
the people of U.K & Canada etc.
To cover the needs & wants of its customers satisfied, ZAHIDJEE limited has divided
the market into different segments. Each segment is assigned to different managers
they are working thoroughly on a customer basis. There are total 8 export managers at
ZAHIDJEE. Some managers visit their assigned market segment and check the needs
& wants of their customers followed by their culture, valued & belief.

3.5.2. Research Process:
The marketing department of the ZAHIDJEE LTD uses sources for searching the
customers from their assigned market segments. Every possible source is best utilized
to search the customer, its profile, needs & wants. A little detail about the process is
as under.



30

3.5.2.1. Primary Sources:
In all over the world wherever some textile exhibitions/fairs are being convened, most
of the time some ZAHIDJEE LTDs representatives arrange their outlet to display
their products. The customer visits the outlet and selects the company products. Their
demands are noted if anything is special by the customer. It includes the physical part
of the customer and seller relationship. Furthermore the company also invites its
customers to have a survey of Factory as the production is in process.

3.5.2.2. Secondary Sources:
The internet facility is given to the marketing department of the company to gather
information about the buyers of label products. They use different search engines like
Google, Yahoo, Hotmail, excite etc. The company has been subscribed with a few
firms providing the detail of buyers & sellers of product from all over the world. They
have been given an annual subscription fee for their services. Online directories of
different associations & Govt institutions are used to search the buyers.
Trade bulletins, Directories, journals, Business Magazines &newsletters are studied to
know about the buyers demand, culture, values & beliefs of the peoples of different
countries.
All Pakistan Textile Processing Mills Association (APTMA), All Pakistan Bed sheet
Upper Hole Manufacturing Association (APBUMA), Pakistan Textile Exporter
Association (PTEA) and Faisalabad Chamber of commerce and industry (FCCI) are
some of the platforms which are also promoting trade and are helpful in the
correspondence between the seller and buyer. As ZAHIDJEE is almost registered with
all of these institutes so ZAHIDJEE LTD also has an advertising support from these
institutes.

3.5.3. Pricing Strategy:
The company uses different pricing strategy varying customer to customer on the
basis of segments. If the company is producing any product on a contract basis, then
company uses the cost plus pricing strategy.
To attract the new buyer of other country the market penetration policy is used. Due
to the high cost of utilities and political instabilities the country is in crises. It's
become hard to meet the customer requirements in lowest price, in spite of this, some
31

time to retain the old customer or to honor the commitment the become bound to use
this strategy.
Discounts, allowances & rebates are given to please the customer when the deals are
concluded on high rates but later prices fall down. In short the company always tries
its best to adopt the strategy which could win the customer value/satisfaction.

3.5.4. Customer Retention:
The firm retains its customers in a better manner as it has a priority to pamper the
current customers instead of running for the new ones. Due to this act the firm has
acquired a number of loyal customers, which are affiliated with ZAHIDJEE LTD for
a long time. This also reduces the cost of research for the firm as they dont have to
worry about finding new customers as the present ones are enough for company.
Furthermore, it is a business policy of the organization that it expands its business by
finding new customers and entering new markets, but this act should not affect the old
customers. Thats the key of success which ZAHIDJEE Lid is following.
Organizations Values
Trust
Integrity
Respect

3.6. I.T Department:

The Company is using Fox-pro, Oracle 10g base programs in their accounts & Store,
& costing departments which enable the management to make the prompt decisions
on the basis of up-to-date information.
Networking of computer in each department makes the MIS speediest, efficient and
cheaper. The use of computers at each level enables the company to create a paperless
environment.
A team of highly qualified I.T professionals is working with the firm and a number of
software and packages have been developed by them for automation of the systems.
IT Department is very strong in the ZAHIDJEE. In ZAHIDJEE a local area network
is used which is maintained by I.T department. They have purchased very expensive
32

software from a foreign software development company and now its being operated
by competent staff of their own.

Enterprise recourse planning (ERP)
Accounting and Finance Management (AFM)
Export Management System (EMS)
Apparel Management System (AMS)
Apparel Costing System (ACS)
Fabric Management System (FMS)
Inventory Management System (IMS)
Organizational Planning & Development (OPD)
Syscat

I.T performs many other functions in the ZAHIDJEE LTD which are as under:
Card Scanning
Bar Code on Finished Product
Bar Code on Packed Product
Catering
Making Gate Pass

3.7. Human Resources:

The Human Resources Department is working very effectively in the firm. It has a
good check &balance in the internal affairs. The reward system of employees is
controlled by this department. Moreover overtime is paid very effectively and special
bonus if the firm is under work on occasions like Eid and other holidays. There is a
pick and drop facility for the employees to ease them and be punctual. Following are
some points the HR department of the firm follows.
The main goal is to motivate the employees up to maximum level to get the
best out of them. For this purpose employees are offered Marriage and death
allowances, insurance, bonuses, profit participation and much more.
Appreciation and other training schemes at all levels. Medical and Educational
facilities for the employees and their families.
33

To identify training needs and provide required training to all categories of
employees.
To make best use of the skills and abilities of all those who are employed in
the organization.
HR Department in ZAHIDJEE LTD is involved in different types of human resource
related activities which are as follow:
Recruitment
Training and Development
Compensation
Performance Appraisals
Employee Welfare
Rewards and Punishments
Retirement and Termination Benefits

3.7.1. Leadership Style:
Leadership style of ZAHIDJEE Ltd is not very impressive. Managers dont give
chance to low level employees to give any kind of suggestion in any matter. Their
leadership is not exemplary. Behavior of CEO is quite rude and this is the reason of
low motivation in employees.

3.8. Finance Department:

The main objective of finance department of ZAHIDJEE LTD is to manage finance in
such way that maximum output is taken by minimum input.
ZAHIDJEE LTDs financial administration is very strict in giving information.
Company rules are very strict for it. Following are the main functions of finance
department.

3.8.1. Financial Management:
It deals with the cash inflows and cash outflows. Major cash inflows are as under:
Sales Collection
Interest of Deposits
Sales of Leftover
34

Capital Gains
Major outflows:
Purchase of Raw Material
Purchase of Packing Materials
Purchase of Fuel
Wages, Salaries and Payments
Duties and Taxes

Major Banks which do business with ZAHIDJEE LTD
Allied Bank Limited
Faysal Bank Limited
National Bank of Pakistan
The Bank of Punjab
United Bank Limited

35

3.8.2. Hierarchy Chart of Finance:
























36

3.9. Accounts Department:

An accounting department of ZAHIDJEE play an important role in managing money,
gathering payments and collecting receivables, paying bills and utilities on time and
ensuring the company keeps a positive net worth value. Accountants often set goals
and objectives for the entire department to ensure the business performs the best
possible accounting practices at any given time.
Handle general accounts.
Apply cost accounting.
Prepare budget.
Produce financial reports.
Undertake examination of records (auditing).
Make better financial decisions.
Analyze information for planning and control.
Prepare project proposal, and appraisal.

3.10. Forwarding Department:

Organize the safe and efficient movement of goods through different mode of
transportation.
They use the most effective and economical methods of transport for goods that might
be the services of shipping lines, airlines or road and rail freight operators. The
forwarding department play very important role for shipment of textile goods to
various countries with using of many documentation.
They use container to transfer of goods like 20ft, 40ft and 40 ft HC.
They use the following formulas to calculate the Calculate Cubic Meter (CBM).
L * W * H/ 61023 * No. of cotton
For air:
L * W * H/ 366 * No. of cotton
L=length
W=width
H=height


37

3.10.1. Functions of Forwarding:
Research and planning of appropriate route for shipment
Obtaining, checking and preparing documentation to meet customs and
insurance requirements.
Arranging air transport for urgent basis.
Working closely with customer and third parties to insure smooth operations
to deadlines.
Maintaining current knowledge of relevant legislation, political situation and
other factors that could be affected.
Transmitting data by internet and tracing of shipment

3.10.2. Mode of Transportation:
Road transportation
Rail transportation
Air transportation
Sea transportation

3.10.3. Bill of Lading:
A document that establishes the terms of a contract between a shipper and
transportation company.
The following heads includes;
Shipper name
Consignee
Notify party
Export reference numbers
Agents name
Vessel number
Port of discharge
Place of delivery
Final destination
Description of goods


38

3.10.3.1. Air way bill;
An air way bill is a documentary proof of the contract of carriage between the shipper
and the carrier.
It includes the following heads
Supplier name
Consignee
Form export number
Invoice number
Notify party
Airport of discharge
Airport of receipt
Airport of loading
Description of goods
Gross /net weight
L.C number

3.10.4. Commercial Invoice:
The commercial invoice made by the forwarding department which goes to the buyer
of products.
It includes the following heads
Invoice number
Shipper name
Consignee name
Notify party
Agents name
Export registration number
Payments terms
Discretion of goods

39












4. CHAPTER NO. 4
MY INTERNSHIP PROGRAM

40

4.1. Introduction of the Head Office:

Registered Office & head office of the company is situated at 20, Bilal Road,Civil
Lines, Faisalabad, and contain the Finance department, Accounts department, internal
audit department, purchase department, Export/local marketing Department etc.

4.2. Starting and Ending Dates:

Internship starting date 1st July, 2014 date and ending Date 20
th
August, 2014.

4.3. Names of the Departments and Training Duration:

Finance /Account Department July 1
st
, 2014 to July 31
th
, 2014
Export/ Local Marketing Department August 1
st
, 2014 to August 20
th
, 2014

4.4. Finance /Accounts Department:
The finance department of the company arranges for the final audit of the company
collected data from different sources inside the company and manages those data for
audit program.
According to my internship plan I spent two weeks in finance department. There I
judged and observed the working conditions and what are the operational areas of
finance department. I observed the hierarchy that I have read in the Organizational
Behavior and whatever I have learned in the Principle management about the working
of the different departments are same here in the company. Here is a hierarchy of
management that is working with co-operational activities. No one here is able to
complete and do all the duties. Everyone is specialized in his own working field. And
report to his senior. Each and every employee in the department is efficient and
hardworking. The finance department of the company manages and arranges the
finance for the company and maintains a limit in the capital structure.




41

4.4.1. Sequence of Work:
Purchase order received.
Procurement.
Dispatch.
Invoice account debt.
Record on sales book
Export Procedure
Party term of payment (either on bill of lading or on delivery).
Check either a forward contract or on ready date.
Negotiate Exchange rates by different banks
Prepare document required by bank for dispatching.
Receive payment bank credit our account.
Credit advise should be used in order to pass entry of payment.
Distribute according to demand of departments with advise of CEO.
The accounts department is performing its duties under the supervision of General
Manager Account; he is the head of the accounts department. The account department
of the company maintains the books of accounts for the company. The Deputy
manager accounts performs his duties under the General manager accounts who have
subordinate Accounts manager, further hierarchy is discussed in the hierarchy chart of
the company. The accounts department of the company is using electronic data for the
generation of financial statements. The financial statements are maintained through
Oracle Financials". The sequence of preparation of financial statements is
interlinked. Only data is posted in the software and further statements are
automatically generated by the software.
42



The account department of the company prepares salary sheet for the company. It
calculate the total salary payable for the permanent worker and salary payable to the
people at daily wages, further the calculation of bonus and any financial reward is
also calculated by the account department.
The Account Department is responsible for the entire accounting process of the
organization regarding the recording of transactions, designing the accounting system,
preparation of financial statements and computer application to the accounting
process.

4.4.2. Exchange Rate:
At ZAHIDJEE most of the time exchange rate is pre secured by using different
heading tools and they only deals with KSA Karachi stock exchange and some time
they also discount Latter of credit before due date or take loan on it.
For this purpose they use
Option Contracts
Forward Contracts



43

4.4.3. Insurance:
They always insure their assets its duty of finance department to find best insurance
packages and made their payments. Most of the time they use EFU insurance
company for this purpose.
Items they insured are:
Vehicles
Cash during manual transaction
Machinery
Buildings

4.4.4. Vouchers:
The process of accounting system starts from the preparation of voucher. The
following are different types of vouchers prepared at ZAHIDJEE Textile Mills: My
internship period in accounts department was very interesting. Here I have learnt that
how the accounting departments of different organizations are working. As like the
finance department the accounts department of the company is also running under the
supervision of a head, and called General Manager Accounts. The accounts
department of the company is very responsible areas of job. Here each activity related
to company operations and finance is recorded. The accounts department receive
voucher from different department like sales, purchase and administration department,
each and every entry is separately recorded in separate account. As I have earlier
discussed that I performed my duties as an observer, but here in this department I
personally posted entries in the oracle accounting software. It was very interesting
assignment. For three days I posted vouchers and I spent two days in developing
vouchers for different departments. It was very exciting duty; each and every detail
was written on the vouchers one just has to post it in the computer software. Further I
had to get the voucher audited from audit department.






44

4.4.5. Bank Voucher/ Bank Account Transfer:
This Voucher is prepared when any amount is deposited or withdrawn from the bank.



4.4.6. Payment Voucher:
This Voucher is prepared at the time of making payments to any party.


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4.4.7. Credit Voucher:
This voucher is prepared while receiving any amount from any party.



4.4.8. General Voucher:
This is also known as adjustment voucher. This voucher is prepared for adjusting any
entry. Vouchers are prepared after every transaction. These vouchers are sent to the
Chief Accountant with all supporting documents. The chief Accountant verifies these
vouchers and sent them to the Director Finance. If he has any inquiry about a thing, he
asks the relevant person. If there is not any point for inquiry then he puts his signature
on the vouchers. Now it is a time to record these vouchers in the books of accounts.
46



At daily basis different type of vouchers are interred in the accounts department and
the accounting system entail step take place here. After receiving these voucher these
voucher are recorded in the oracle software.
These transactions are recorded in the number of books like:
After recording the transactions in the software of accounts these are posted in the
ledgers. The internal auditor then verifies whether the transactions are properly
recorded in the modules (books of accounts) or not.

4.4.9. Cash Book:
In this book cash payment and receipt vouchers are recorded on daily basis. The
vouchers are numbered serial wise and cash closing balance is calculated
automatically.

4.4.10. Bank Book:
This book is maintained for all the bank accounts of the company. When any amount
is withdrawn or deposited in the bank that amount is also recorded in the bankbook.
At the end of month bank account is reconciled with bank statements.
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4.4.11. Bought Day Book:
The bought day book is maintained for recording the purchases made by the company.
The balances form the bought day book is entered in the relevant supplier ledgers at
the end of the month the balances from the bought day book is posted automatically in
the main ledger for control purposes.














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4.4.12. Sales Day Book
In this book sale bills are entered and then posted in the customer ledgers. At the end
of the month the balances are posted in the main ledger for control purposes.



When the transaction is properly recorded in the books of accounts then these
balances are posted in the ledgers. The following are the types of ledgers maintained
at ZAHIDJEE Textile Mills Ltd.
1. Main Ledger
2. Profit and Loss Ledger
3. Customer Ledger
4. Supplier Ledger
5. Staff Ledger





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4.4.13. Expenses Account:
Manufacturing Expenses
They are like purchase of cotton, wages and salaries, fuel, power, insurance, repair
and maintenance of plant, packing and depreciation.
Admin Expenses
These are Directors traveling expenses, salaries, and communication expenses like fax
telex etc. rent, electricity, entertainment, and advertising, and vehicle, subscription,
printing and stationary
Selling Expenses
These include export expense, corporate freight, and local selling expense.
Financial Charges
They are like interest on long-term loan, mark-up on short-term finances, long-term
finances, exchange risk coverage fee, commission on bank guarantees, L.C
commission, excise duty on long term and short term finances.
Misc. Charges
They include auditors fee, legal and professional charges (other than auditors),
donations, fines and penalties.

4.4.14. Internal Audit Department:
The internal audit department of the company is working under the supervision of
chief internal auditor. The internal audit is conducted on continuous basis. This
department of the company is interlinked with finance department and with accounts
department. It audits the financial reports of the company prepared by the accounts
department. Before the statutory audit the department of internal audit, must conduct
the internal audit, further there are some qualified persons working under the
supervision of chief internal auditor. Each and every transaction before posting in the
books of accounts is audited by the audit department.
Internal audit is my most favorite department in this department the duties are
assigned to the subordinates by chief internal auditor and he manages this department
very well. Internal audit is an ongoing process each and every transaction is audited
and routed through audit department. The process of internal audit comprises of two
main operations i.e. pre audit and post audit. In pre audit all the transactions are
audited by internal auditors before posting in the accounting software. After posting
50

these transactions in the accounting software these are again audited by the audit
department and this process is called post audit.
The finance department of the company arranges for the final audit of the company
collected data from different sources inside the company and manages those data for
audit program.
The account department of the company updates the financial statements at daily
basis. All the transactions occur in the current day are recorded in the software and
software updates all the relevant of accounts. After a specific time of period the
account department forwards the financial statements to the audit department which
audit these financial statement prepared by the account department.
ZAHIDJEE Textile Mills has also a special department for performing the internal
audit. The Internal Auditor heads this department. The audit department develops
audit program before conducting an audit. This department works on continual basis.
The internal auditor of the company visits the mills on weekly basis and conducts the
audit according to the checklist framed by the internal audit department. The
department is responsible to keep its eyes on the implementation of management
policies. This department is also responsible to inform the top management regarding
the accuracy of all accounting information and their analysis.

Following are the main functions of the internal audit department:
Revision of the System
The internal audit department revises the system if there arises any discrepancy.
Check on the System
The internal audit department checks whether the revised system is being
followed or not. If arises any deviation that is reported to the management.
Check on Maintenance of Books of Accounts
This department also examines whether management policies are followed or not.
Proper maintenance of Books of Accounts
The internal audit department also examines whether proper books of accounts are
being kept as required by the Companies Ordinance 1984.
Assets Safeguarding
This department also safeguards the company assets.
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The following are the main functions performed by the internal audit department at
branch office while conducting an audit:
- Checking of postings from clock to wages sheets.
- Recovery of advances
- Price checking
- Checking of Credit Notes issued by the Sales Department.
- Checking of Debit Notes issued by Sales Department.
- Checking of rebates, discounts
- Continuous checking of assets of the company
- Checking of bank vouchers
- Checking of credit vouchers
- Checking of general vouchers

4.5. Export / Local Marketing Department:

4.5.1. Export Department:
ZAHIDJEE Textile Mills started sales from local market and now major portion of
production is exported outside Pakistan. The structure of this department is as under:



4.5.2. Export Process:
The export process starts from bargaining. A buyer contacts the company for the
purchase of the yarn. The contract may be direct or through middleman. When the
price and quality of the yarn is settled then contract from is filled. The terms and
condition are settled by the director of the company.
Director
Export Managers
Export Assistants
Typists
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After the settlement of terms and conditions the buyer in the bank opens L.C. L.C is
of two types. L.C at sight and L.C at issuance. L.C at sight means the L.C opening
bank shall make the payment as soon as the shipping documents are presented on its
counter by the negotiating bank. On the other hand L.C at sight has different periods
of maturity varying from 30 days to 150 days receiving original L.C from buyer,
seller will dispatch the goods as per details given in the L.C. After shipment usually
following documents are presented to negotiate. For this purpose ZAHIDJEE have
their own export management system which have following modules.



Packing Summery
Packing list
Commercial invoice
Bill of Lading
E- Form from bank
Customer clearance
L.C/ Contract/ CAD (cash against documents)
Bill of lading
53

Bill of Exchange
Certificate of Origins
Beneficiarys Certificate
Certificate from Shipping Company
Dispatch document

4.5.2.1. Commercial I nvoice:
It is a sort of list which shows what is they exporting showing the:
Contract
L.C
E- Form
Shipping Company Name
This commercial invoice is sent to the buyers Central Bank. One copy of this invoice
is kept in ZAHIDJEE Textile Mills.



54



4.5.2.2. Bill of Lading:
It is a list of goods issued by the shipping line stating that the good have been loaded
on board, freight prepaid and other specifications.

55

4.5.2.3. E Form:
E Form is the basic document of export. Government control foreign exchange
through this form. Thus, it is one of the most important documents. Exporter fills and
signs it. Bank also countersigns this form. It has four copies.

4.5.2.4. Beneficiarys Certificate:
Beneficiary certificate is issued by the seller as required by the buyer. Usually the
wording of this certificate is as
Certify that goods have been shipped per vessel shipping company name and the
shipping documents have been dispatched to the applicant under L.C # _____.

4.5.2.5. Certificate from Shipping Company:
Shipping company issues this certificate on the request of the buyer.

4.5.2.6. Packing List:
Packing list contains the detail of all the items being exported. This list show the
carton number, container number, goods description gross and net weight of total
cartons and each carton.

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4.5.3. Import Department:
ZAHIDJEE Textile has also an import department. The import department of the
company is responsible to import those items which are not available in the Pakistan.

Procedure
Senior Manager is responsible for import of machinery, equipment, spare
parts, raw material, etc.
An indent for import of items after the approval of Chief Executive is sent to
import department.
The Senior Manager Import selects a subcontractor form approved suppliers
list.
In reply, a quotation from the subcontractor is received. A copy of quotation is
sent to concerned department for evaluations a checking of specification.
After receiving the confirmation letter of credit is established and
subcontractor is informed either by phone, fax, or telex.
The received items are sending to the mills where these are opened. The items
are checked against quotations.
In case of any damage the import department is informed immediately.
Import Department does the necessary arrangements for survey of goods from
insurance agencies and claims.
A file is maintained with detailed information of import department and letter
of credit.

4.5.4. Local Sales Department:
In the beginning ZAHIDJEE Textile Mills Ltd sold its major portion of product to the
local market and then it gradually entered in the international market.

Procedure
The following activities are performed in the local sales department.
The Directors receives orders mainly by phone.
Directors evaluate the capabilities to fulfill the order by consulting daily stock
report from mills.
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Directors give the instructions to local sales managers that transfer the
information on local sales contract slip.
Before issuing/sending contract slip. Sales manager checks the selling limits
of the particular party/broker, and discuss the matter with the Director if it is
exceeding the selling limits.
Sales Department make three copies of Delivery Order signed by the Director
Original copy is dispatched to the party and keeps one copy for record and one
copy to account section.

4.6. Personal Comments about Departments:

These all are the main departments of the ZAHIDJEE Textile Mills each and every
department performed very vital Role if we skip any of them than the system will be
incomplete. Let us ask the example without cash the organization is nothing mean
finance department performed the activities of finance that how and where manage
the cash, the salaries of the employees each and every thing related to cash manage
finance department.
Now we move to the sales department whenever there is no cash it means you dont
have the money to invest, when u have no money than you cant invest on production.
When there is no production than no question can arise about sale due to lack of
production.
It means all the department are interrelates with each other so if each and every
departments any activities is missed than all the work is stopped but During my
internship is see that all the departments are very sufficient for growing.

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5. CHAPTER NO. 5
PEST AND SWOT ANALYSIS

59

5.1. PEST Analysis:

It is very important that an organization considers its environment before beginning
the marketing process. In fact, environmental analysis should be continuous and feed
all aspects of planning. My internship at ZAHIDJEE has added much to my
knowledge. In this report I have written introduction and history of ZAHIDJEE
Where then I have written vision, mission and core values adopted by the industry. I
have also done the critical analysis of ZAHIDJEE according to my knowledge
following factors have disturbed the functionality of the organization
The organization's marketing environment is made up from:
The internal environment e.g. Staff (or internal customers), office technology,
wages and finance, etc.
The micro-environment e.g. our external customers, agents and distributors,
suppliers, our competitors, etc.
The macro-environment e.g. Political (and legal) forces, Economic forces,
Socio cultural forces, and Technological forces.
These are known as PEST factors.

5.1.1. Political Factors:
The political arena has a huge influence upon the regulation of businesses, and the
spending power of consumers and other businesses. You must consider issues such as:
How stable is the political environment?
Will government policy influence laws that regulate or tax your business?
What is the government's position on marketing ethics?
What is the government's policy on the economy?
Does the government have a view on culture and religion?
The political situation of Pakistan is not satisfactory and unstable. Rapid change in the
Govt. and the change of the policies of the previous govt. by the new govt. abruptly
effect the Pakistans political situation. Due to these entire factors the foreign
importer hesitates to invest in Pakistan. Govt. should device such policies that are
beneficial for the local exporter as well as for the investors. It is fact all government
agencies and influential groups that somewhat influence various organizations and
individuals in a given society are included among political factors. Present change in
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the political scenario can definitely be favorable for economy of the next financial
year. All the sanctions, which were imposed by the USA after the nuclear explosion,
have been removed. Now with the change of political situation, the exports of the
country are increasing day by day. In this way foreign exchange earning has
increased. It is also duty of the government to take care of textile sector and make
good policies for this sector for the exports and imports.

5.1.2. Economic Factors:
Marketers need to consider the state of a trading economy in the short and long-terms.
This is especially true when planning for international marketing. You need to look at:
Interest rates
The level of inflation Employment level per capita
Long-term prospects for the economy Gross Domestic Product (GDP) per
capita, and so on
The economic condition of Pakistan is not suitable for investment. Market growth
rate is very low and new investors hesitate to invest. Increasing inflation rate due to
heavy loan make the business environment strict. Actually increase in inflation rate
leads to high cost of production so our country products sell out at a high price but
with low margin. The products of ZAHIDJEE have positive image in local and
international market .The economic environment consists of factors that reflect
consumer purchasing power and spending pattern. The consumptions of ZAHIDJEE
products are considered best in quality in most of the international markets.
ZAHIDJEE has a large impact on their markets. So, before entering the international
markets, ZAHIDJEE must consider the changes in major economic variables such as
income, cost of living, interest rates, savings and borrowing patterns.

5.1.3. Social Factors:
The social and cultural influences on business vary from country to country. It is very
important that such factors are considered. Factors include:
What is the dominant religion?
What are attitudes to foreign products and services?
Does language impact upon the diffusion of products onto markets?
How much time do consumers have for leisure?
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What are the roles of men and women within society?
How long are the population living? Are the older generations wealthy?
Does the population have a strong/weak opinion on green issues?
The change in the lifestyle of the people affects the demand of the ZAHIDJEE
products. The change in the lifestyle and needs in different demographics also affect
the demand of the customers.
Due to all these changes ZAHIDJEE is performing excellent for the excellence of
organization as well as for the customer. The cultural and social environment is made
up of institutions and other forces that affect a societys basic values, perceptions and
preferences and behavior of people grow up in a particular society that shapes their
basic beliefs and values. This is the policy of ZAHIDJEE that the products for exports
are designed according to the beliefs and values of the international consumers. The
products are made according to the changing lifestyles and liking and disliking of the
customers.

5.1.4. Technological Factors:
Technology is vital for competitive advantage, and is a major driver of globalization.
Consider the following points:
Does technology allow for products and services to be made more cheaply and
to a better standard of quality?
Do the technologies offer consumers and businesses more innovative products
and services such as Internet banking, new generation mobile telephones, etc?
How is distribution changed by new technologies e.g. Books via the Internet,
flight tickets, auctions, etc?
Does technology offer companies a new way to communicate with consumers
e.g. Banners, Customer Relationship Management (CRM), etc?
Availability of spare parts and technicians.
Technological advancement in all the sectors of the country has changed the entire
socio-economic environment. Especially textile sector has incorporated technological
development and advancement in their organizations. Being one of the largest in the
textile sector, ZAHIDJEE has great financial resources and they are always in a
position to install the latest and advanced machinery in their production department.
With the help of modern technologies they are in position to design new products.
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After the introduction of new technologies in designing and production department,
ZAHIDJEE is planning to introduce Dying plant, Bleaching plant and their own
Powerhouse. The flat bed for which they are planning to install is the first ever photo
printed machine in Faisalabad textile sector. While in the engraving they are going to
install CST engraving for flatbed screens and it is the first machine introduce by the
manufacturing company of Germany. Introduction of new technologies creates new
markets and opportunities for ZAHIDJEE Companies that do not keep up with
technological changes soon will find their products outdated and they will miss new
product and market opportunities. Because of good financial resources ZAHIDJEE
has been prompt in introducing new technology is in all its departments.

5.2. SWOT Analysis:

SWOT analysis is a tool for auditing an organization and its environment. It is the
first stage of planning and helps marketers to focus on key issues.
Once key issues have been identified, they feed into marketing objectives. It can be
used in conjunction with other tools for audit and analysis, such as PEST analysis and
Porter's Five-Force analysis.
SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and
weaknesses are internal factors.
During the span of my internship program I did SWOT analysis of ZAHIDJEE I tried
my best to analyze the every aspect of its business process. After SWOT analysis I
concluded that ZAHIDJEE is successful business firm from last two decades. At
present ZAHIDJEE has a strong position in business market.

5.2.1. Strengths:
ISO 9001-2000:
ZAHIDJEE is certified under ISO 9001-2000, so it meets the requirement of
international standard and has a value in the mind of concerned people.

Advanced Security System:
ZAHIDJEE has an advanced security system. There are hidden security cameras
which capture all the moments. The entry system of all the workers is much secured.

63

Oeko-Tex 100:
ZAHIDJEE is also Oeko-Tex 100 certified. It means that ZAHIDJEE does not use
any kind of hazardous materials that may have an effect on the customers or the
environment.

High Quality Product:
ZAHIDJEE is using advanced technology like they have modern machinery by which
the quality of product produced is very high and it is made sure to meet international
quality standards.

Latest Mechanized Machinery:
ZAHIDJEE is using modern looms which they have purchased from China, Japan and
France. By using the latest machinery the productivity of the employees is very high.
ZAHIDJEE provides modern working atmosphere to its staff which encourage them
to work hard and more efficiently and effectively.

Tremendous Market Positioning:
ZAHIDJEE is one of the major exporters in the Pakistan so it has got the best position
in the mind of the customer. ZAHIDJEE has a better position in the mind of its
customers due to good relations with customers.

Highly Qualified and Skilled Management:
The management of ZAHIDJEE is skilled and competent. Those are experienced and
more qualified employees which are cause of their success.

Highly Motivated Workforce:
ZAHIDJEE is compensating their employees well, which motivates the workforce
and they seem together as a unit and work together as a family.

Competitive Advantage:
It is an old label business and it has still kept its position in the market with all other
competitors nationwide so it has a distinctive edge. Also it is located in city of textile
industries which is famous for fabrics production.
64

5.2.2. Weaknesses:
High Cost of Production:
The production cost is high because of not properly utilization of its resources. The
company is using the latest machinery, but it is not adopting advanced production and
marketing techniques. So improvement is still needed in this area. There are
insufficient transport facilities for staff thats why staff faces many problems on the
way or job duration.

Centralized Decision Making:
Most decisions are made by the upper management, which is a weakness of the
ZAHIDJEE. The employee conflicts are major weakness for the firm due lack of
participation of first line managers in decision making process.

Frail image in the International Market:
As the company has high cost of labour and production, so specialized countries in
textile field like India and China takes advantage of lower labour and production cost
taking more orders from foreign countries. This is a weak point.

Less Promotional Activities:
The advertising and promotional cost of the ZAHIDJEE is very low as it does not take
an effective part in the advertisement. It can increase its turnover manifolds by using
effective advertisement tactics these days, as peoples lives are very much affected by
electronic media. No entertainments are available for employees and a few on the job
training or off the job training programs are available so these reasons for low
productivity.

Lack of Benefits and Rewards for the Employees:
ZAHIDJEE does not take effective steps to improve the standards of living of its
employees by not providing effective bonus programs and performance reward
systems. So this is another weakness. There are low salaries of some employees or no
more incentive programs for employees which are cause of low productivity because
employees feel bore about their work

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5.2.3. Opportunities:
Target Market
a) Domestic Market:
In domestic market there is entrance of many potential customers every year.
They require quality products at lower price. They can be potential customers
of ZAHIDJEE in future.
b) International Market:
There are a lot of opportunities in foreign market. A share in international
market can be obtained by using promotional activities.

Improvement in Variety:
ZAHIDJEE contains high quality production unit. They can produce of new design
and colors. Company is working to introduce new designs of fancy label products.

5.2.4. Threats:
Buyer Needs and Wants Diversity:
There is much diversification in consumers mind. Their needs continually change as
the occasions and environment change.

Governmental Policies Instability:
Government policies are changing day by day so it is a threat for the ZAHIDJEE to
survive in such an unpredictable environment. Devaluation of money is major threat
for the firm. In this way import of raw material like yarn and machinery are very
expensive and profitability effected by the devaluation of money

Severe Market Changes:
Art change is said to be "Severe" when new segments of primary demand develop or
when new technology replace old one and certain industries begin to break and also
when business definition changes. These changes are threat to any company and
organization must have flexible policies to cope with these changes



66

Growing Prices of Raw Material:
It is also a problem to control prices in the scenario of growing prices of Raw
material, Electricity, water and Sui gas has a shortage of energy resources. To fulfill
the energy resources they may need to develop their own Powerhouse which could be
expensive.

Globalization:
Now by the introduction of WTO intense competition occurs. Chinese products are
gaining popularity day by day. This is one of the biggest threat to company. So in
foreign business market, China is prevailed with textile items. So in China, labors are
available with lower wages rate as compared to Pakistani labors.




67












6. CHAPTER NO. 6
CONCLUSION AND RECOMMENDATIONS

68

6.1. Conclusion:

The sale of ZAHIDJEEs products is increasing day by day due to its high quality,
low price and specialized designs of products. It is manufacturing high quality
products at low cost for valuable customers. It has done a lot for stabilization of prices
in products. Its quality standard is appreciated in the market.
To analyze the company from various aspects of marketing, SWOT Analysis has been
carried out with devoted efforts. The strengths, weaknesses, opportunities and threats
depict the future of ZAHIDJEE. Remedies have been suggested for improvements in
the operations.
Alter all ZAHIDJEE is one of the leading companies in Pakistan. The system, the
management style, the policies & decentralized decision making environment is really
remarkable. This report is basically an attempt to identify the areas which need to be
improved. In this era of technology, the Information is the key to success in the
business. This means that the successful businessman will be who will have the right
information at the right time. This comment leads to the conclusion that the
Information Sharing Process should really be improved.
The overall analysis is indicating that the companys progress has mainly attained
through dedication of employees. The effectiveness of its management, their
willingness to take advantage of opportunities and face challenges of changing
economic picture, this all contributes to the very much improved and sound position
of company. This is really appreciable for the devotion and hard work of all the
employees of the company
The professional management always lays emphasis on initiative, drive and team
spirit, where continuous improvement and excellence is the goal. As a part of
Organization Development program, special emphasis is laid on development of
Human Resources through in-house and external training, in order to update the staff
with recent technical enhancements, to benefit new emerging technologies and
supervisory skills resulting in the development of a highly competent pool of human
resources.
The following points were observed by me during my training period and these are
kind of major ones I could find as the overall performance of the company is really
satisfactory and furthermore nothing is perfect or gives 100% results.
69

The use of information technology is not as per international standard.
The marketing strategies are not so much satisfied.
There is a fluctuation in the working of the firm.
Huge gap between the juniors & seniors.
Financial arrangements are not sufficient.

6.2. Recommendations:

Bonus system:
The proper facility of bonuses is provided to the production department, and there is
no definite and proper system to award bonuses to other departments. Compensation
and reward system should be brought to a higher level in order to let the employees
be motivated and happy. There should be more fringe benefits of the employees
taking into consideration their devotion, skill and experience. This higher level would
make the employees more efficient& effective.
Special incentives on Eid and on other special days should be given to the workers.
Medical facilities are given in mill but such facilities should also be given to
management.
At present facility of bonus is given only to production staff but such incentives
should also be given to Head office Staff.

Employees Training:
Although there is an educated and talented staff working in ZAHIDJEE, but it is the
need of the hour that the staff should be given the time-to-time refresher courses for
the up to date knowledge for meeting new and dynamic challenges in the growing
business concern of ZAHIDJEE. New training courses will help in uplifting the
quality of the work of employees. Different training courses should be arranged for
the up lifting and improving the quality of work for employees.

Recruitment and Training of New Employees:
When I was in the Human Resource department, I observed that fresh boys with no
working experience were also hired by the department. They did not even know how
to operate the machines where they will work. There was no proper training provided
70

to them. They learn by direct experience and interaction with the other workers. These
new workers should be provided with the proper training because working with the
brigand costly machines can be harmful to the workers and the company may have to
bear the loss in case a costly machine malfunction.

Stipend for the Internees:
The company has no policy to compensate the internees. There should be a little
stipend for trainees as well, as the company can fulfill their day to day travelling and
food expenses. By doing this, trainees will show more interest, more devotion, more
potentials and will work with their full mental and physical efforts.

Conveyance Facility:
The company provides transportation facility to only female employees I think male
should also be facilitated. This will create the easiness for workers and reduce the
wastage of time.

Work Over Load:
There is also a problem of work overload for the employees and it should be
controlled properly so that the employees are motivated. Employees should be paid
extra for the work which they done after working hours.

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References

Economic Survey of Pakistan (ESP) (2010), Economic Survey of Pakistan, 2010-
2011, Ministry of Finance, GOP, Islamabad.

Faisalabad Chamber of Commerce and Industry (FCCI). Retrieved from
http://www.fcci.com.pk

All Pakistan textile mills association (APTMA). Retrieved from
www.aptma.org.pk

Government of Pakistan Ministry of Textile Industry (MoIT). Retrieved from
http://www.fcci.com.pk

Zahidjee textile mills limited (ZTML). Retrieved from
http://www.zahidjee.com.pk

Pakistan Textile Exporter Association (PETA). Retrieved from
http://www.ptea.org.pk/

Oxford University Press. Retrieved from.
http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12
.htm6.

Directorate general of Training and Research (DGTRDT). Retrieved from
www.dgtrdt.gov.pk/Research/38th_syndicate_reports/6.pdf 7.