Internship Report Without F.S

Internship Report
On
Talon Sports Sialkot Private Ltd.
Submitted To:
Prof.Dr.Muhammad Ehsan Malik (Director General)
Submitted By:
Muhammad Nasir
BB09124
BBA (Hons) Finance
Session:2009-2013
University of the Punjab

Gujranwala Campus
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IN THE NAME OF ALLAH THE ALL ALMIGHTY THE ALL MERCIFUL
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Acknowledgment
By the Grace of Almighty, the most Merciful, the most Beneficial, Today
Im submitting my internship report, at the end of my first pragmatic
experience and Im glad to have it with Talon sports. Thirst of learning is
inside you and whatever the environment, if youre willing to learn you
do. Talon sports, I had new challenging, yet a perfect environment to
learn. My parents prayers and their teachings were always with me and
hereby Ill like to take this opportunity to show my gratitude to all those
who made my internship and adventures outwit.
Here Im from my professional and rather corporate environment of Talon
sports. I never knew what it all going to be.
Despite of the most hectic schedule talon sports management helped me so
much. Im really great full to the management for clarifying my concepts
and making me learn from great experience, whatever Im learn from
youll definitely help me in my upcoming study and the professional life
ahead thank you so much for being so corporative and so helpful every
time I hope Ive been up to your expectations.
In the end Ill like to thank all my other colleagues and all my other
fellows internees her and in branch, for their unconditional support and
help in making me learn in a good environment.
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TABLE OF CONTENTS
Sr.No.
Particulars
Page
No.
01
Exective summary ?
07
02
What is Company?
08
03
Types of Company?
09
04
Private Company?
09
05
Public Company?& Government Company?
10
06
Foriegn Company?
11
07
Limited & Unlimited Company?
12
08
Producer Company?
12
09
Company with a license?
15
10
Holding & Subsidry Company?
16
11
Provision affecting?
12
Limited liability Partnership?
13
Introduction of Organization?
14
Histroy of Organization?
15
Company Background?
16
Company Vission & Mission?
17
Company Management system?Major
18
Catalogues?
19
Management Hierarchy?
20
Body Structure of Organization?
21
Joint Body Designation?
22
Major Competitors?
23
Introduction to all departments?
24
Employee Management?
25
Major Managerial Plocies?

Social Policy?
Enviornmental Management Policy?
Customer Procedure Policy?
Fire Safety and Evoacuation Plan?
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Labor Management Policy?

Cargo Security?
Child Remedation Policy?
Custom Compliante Policy?
Wrap Compliante Manual Security?
Production Process?
Fotball Production Process?
Garments Production Process?
Shoes Production Process?
Fair Trade?
Fair Trade Premium?
Main Market?
Financial Analysis
Liquidity Analysis?
Current Raio?
Acid Test Raio?
Working Capital?
Time Interest Earned Ratio?
Debt Ratio?
Debt to Equity Ratio?
Debt to tangible Net Worth?
Profitability Analysis?
Net Profit Margin?
Return on Assets?
Return on Equity?
Return on Investments?
Return on Operating Assets?
Operating Income Margin?
Gross Profit Margin?
Total Assets Turnover?
Fixed Assets turnover?
SWOT Analysis?
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Internal Analysis?
External Analysis?
Role of HR Department?
Negative Aspects?
Strategies to Improve HR Department?
Improving Organization Culture?
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Executive summary:
It is the requirement for BBA Hons level to do an internship for 6 weeks in any
organization and it also an opportunity for me to get the practical knowledge from that
organization. For this purpose I visited different organizations in Sialkot and I found
that Talon sports sialkot is the only company in Sialkot which is different and unique
from the others organization, Hence I spent not only 6 weeks in Talon sports but also I
worked just like its employee here. I worked in different departments of Talon sports
during my internship period. The main purpose of internship is to develop the
management skill. Such skill not only created by theoretical knowledge but also a
practical experience is also needed. Although the six weeks internship program has not
fully developed these abilities but has at least given me know-how about market. It
enabled me to see the relevance and applicability of various tools and theories of
management in market. The main advantage to me is that I am the job holder of Talon
sports sialkot. This training has also given me awareness of the various career
opportunity available in the market. The work that I had done there is described in the
report.
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What is Company:
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TYPES OF COMPANIES
1. "Private company" is defined in section 3(1)(iii) of the Act and it means a
company which has a minimum paid-up capital of one lakh rupees or such
higher paid-up capital as may be prescribed, and by its articles,
a. restricts the right to transfer its shares, if any;
b. limits the number of its members to fifty (50) not including
i.
persons who are in the employment of the company; and
ii.
persons who, having been formerly in the employment of the

company, were members of the company while in that
employment and have continued to be members after the
employment ceased; and
c. prohibits any invitation to the public to subscribe for any shares in, or
debentures of, the company; and
d. prohibits any invitation or acceptance of deposits from persons other than

its members, directors or their relatives ;
Provided that where two or more persons hold one or more shares in a
company jointly, they shall, for the purposes of this definition, be treated as a
single member.
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2. "Public company" is defined in section 3(1)(iv) of the Act and it means a

company which
a. is not a private company;
b. has a minimum paid-up capital of five lakh rupees or such higher paid-up
capital, as may be prescribed;
c. is a private company which is a subsidiary of a company which is not a

private company.
3. "Government company" is defined in section 617 of the Act and it means any
company in which not less than fifty-one per cent of the paid-up share capital is
held by the Central Government, or by any State Government or Governments,
or partly by the Central Government and partly by one or more State
Governments and includes a company which is a subsidiary of a Government
company as thus defined.
Shall apply to any Government company, only with such exceptions, modifications and
adaptations, as may be specified in the notification.
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4. "Foreign company" is defined in section 591 of the Act and it means a

company which
a. is incorporated outside India and
b. has established a place of business within India.
Within 30 days of establishment of such place of business within India, the Foreign
Company is required to submit documents/details under section 592. Alterations and
changes in these documents/details are required to be notified within 30 days.
The provisions of Section 108C on restrictions of transfer of shares of foreign
companies, sections 118 (right to obtain copies of trust deed), 124 to 145 (registration of
charges), 159 (annual returns to be made by company), 209 (books of account to be kept
by company), 209A (inspection of books of account of company), 233A (power of
Central Government to direct special audits in certain cases), 233B (audit of cost
accounts in certain cases), 234 to 246 (power of Registrar to call for information, etc.),
295 (loans to Directors), 297 (Boards sanction to be required in certain contracts in
which Directors are interested), apply to such foreign company.
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5. "Company limited by guarantee" is defined in section 12(2)(b) of the Act and

it means a company having the liability of its members limited by the
memorandum to such amount as the members may respectively undertake by the
memorandum to contribute to the assets of the company in the event of its being
wound up. Such company could be a "company limited by guarantee and not
having share capital" or a "company limited by guarantee and having a
share
capital".
The Memorandum and Articles of Association of such companies are as per

Tables C and D of Schedule I of the Act, respectively.
6. "Unlimited Company" is defined in section 12(2)(c) of the Act and it means a

company not having any limit on the liability of its members. The liability of a
member extends to the whole amount of companys debts and liabilities but the
member will be entitled to claim contribution from other members. The
Memorandum and Articles of such company is as per Table E of Schedule I of
the Act.
7. "Producer Company" is defined in section 581A of the Act and it means a

body corporate having objects or activities specified in section 581B and
registered as Producer Company under this Act.
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Section 581B
1. The objects of the producer company shall relate to all or any of the
following matters, namely
a. production, harvesting, procurement, grading, pooling, handling,
marketing, selling, export of primary produce of the Members or
import
of
goods
or
services
for
their
benefit.
Provided that Producer Company may carry on any of the

activities specified in this clause either by itself or through other
institution.
b. processing including preserving, drying, distilling, brewing,

vinting, canning and packaging of produce of its members.
c. manufacture, sale or supply of machinery, equipment or

consumables mainly to its members.
d. providing education on the mutual assistance principles to its

members and others;
e. rendering technical services, consultancy services, training,

research and development and all other activities for the
promotion of the interest of its members;
f. generation, transmission and distribution of power, revitalisation

of land and water resources, their use, conservation and
communications relatable to primary produce;
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g. insurance of producers or their primary produce;
h. promoting techniques of mutuality and mutual assistance;
i. welfare measures or facilities for the benefit of members as may

be decided by the Board;
j. any other activity, ancillary or incidental to any of the activities

referred to in clauses (a) to (i) or other activities which may
promote the principles of mutuality and mutual assistance
amongst the members in any other manner;
k. financing of procurement, processing, marketing or other

activities specified in clauses (a) to (j) which include extending of
credit facilities or any other financial services to its members.
2. Every Producer Company shall deal primarily with the produce of its
active Members for carrying out any of its objects specified in this
section.
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8. Companies with licence under section 25

1. Where it is proved to the satisfaction of the Central Government that an
association
a. is about to be formed as a limited company for promoting
commerce, art, science, religion, charity or any other useful
object, and
b. intends to apply its profits, if any, or other income in promoting

its objects, and to prohibit the payment of any dividend to its
members, the Central Government may, by licence, direct that the
association may be registered as a company with limited liability,
without the addition to its name of the word "Limited" or the
word "Private Limited".
2. The association may thereupon be registered accordingly and on

registration shall enjoy all the privileges and (subject to the provisions of
this section) be subject to all the obligations, of limited companies.
Such companies are generally associations, clubs or chambers of commerce.
The Central Government has conferred powers under section 25(6) to exempt or
modify certain provisions of the Act in relations to such companies.
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9. Holding & Subsidiary Company

According to Sec. 2(19) "holding company" means a holding company within the
meaning of section 4 of the Act;
According to Sec. 2(47) "subsidiary company" or "subsidiary" means a subsidiary
company within the meaning of Section 4 of the Act.
Sec. 4 of the Act states,
1. For the purposes of this Act, a company shall, subject to the provisions
of sub-section (3), be deemed to be a subsidiary of another if, but only
if
a. that other controls the composition of its Board of directors; or
b. that other
i.
where the first-mentioned company is an existing

company in respect of which the holders of preference
shares issued before the commencement of this Act have
the same voting rights in all respects as the holders of
equity shares, exercises or controls more than half of the
total voting power of such company;
ii.
where the first-mentioned company is any other company,

holds more than half in nominal value of its equity share
capital; or
c. the first-mentioned company is a subsidiary of any company

which is that others subsidiary.
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Provisions affecting holding subsidiary relationship

a. Holding company as shadow Director (under Sec. 7)
b. Subsidiarys membership of its Holding company (Sec. 42 & 372A)
c. Obligation on the part of holding company to furnish certain information

to its shareholders about the subsidiary e.g.Annual Accounts of all the
subsidiaries to be attached with the Annual Accounts of the holding
company (Sec. 212)
d. Financial year of Holding & Subsidiary Company (Sec. 213)
e. Rights of Holding Companys representatives & members (Sec. 214)
f. Investigation of the affairs of the Subsidiarys Holding Company (Sec.

239 & 247)
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10. Limited Liability Partnership (LLP)

It may be noted that LLP is not a Company under the Companies Act, 1956 but it is
defined under section 2(1)(n) of the Limited Liability Partnership Act, 2008 as a
"partnership formed and registered under the Limited Liability Partnership Act, 2008".
LLPs are bound to pay Income Tax under IT Act on lines similar to general
partnerships. They are not required to pay dividend distribution tax or surcharge.
11. Vanishing Companies (applicable in case of Public Listed Companies)

A Vanishing Company is one which has
Failed to file returns with Stock Exchange (if listed) & with ROC for 2
years.
None of the Directors are traceable.
Not maintaining the registered office at the address provided with ROC
& Stock Exchange.
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TALON SPORTS (PVT) LIMITED SIALKOT
Introduction of the Organization:
Since 1990 talon sports is one of Sialkot leading sports manufacturer organization..
Talons wide range of products include high quality soccer balls, volley balls, handballs,
sports uniforms, goal keeper shirts and gloves, shorts trousers and vests.
With a manufacturing faculty sprawled 200000 sq.ft with built in export and quality
control units, the company takes great care in manufacturing its product under the most
rigorous quality standard with the help latest equipment in sports industry
Talon is playing a major role in eliminating child labor from Sialkot under guidelines
set by the Atlantic agreement. The company outstanding performance in customer
satisfactions is reflected in its phenomenal growth of 100 % over the past five year. We
believe however that the best is yet to come as talon continues to strive for even better
quality for its customers worldwide.
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HISTORY
Since 1990, Talon sports is one of the Sialkots leading sports goods manufacturers.
Talon Wide range of product includes high quality soccer ball, wolly balls, hand balls,
sports uniform, goalkeeper shirts & gloves, shorts, trousers, and vests. With a
manufacturing facility sprawled over 200000sq.ft with built export and quality control
units, the company takes great care in manufacturing its products under the most
rigorous quality standard with the help of latest equipments in sports goods industry. It
is private limited by share and incorporated under the companys ordinance 1984.The
name of owner is chaudhary saleem Baryar.The Company is principally engaged in
manufacturing and export of high quality knitted garments and sports ball to the world
and sports companies. Talon as a Pakistanis first ISO 9001 certified Sports Company
producing 100% balls under ILO Monitoring. It maintains a vast production capacity
and quality according to FIFA standards and as per specific requirements of its clients
on the globe.. Talon sports are certified by the Fair-trade certified labeling organizations
international (FLO) in 2002 and now supply Fair trade certified markets in Canada, UK,
Italy and Germany
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Company Background and Present Status:

Pakistan supplies around 70% of the worlds footballs, with an estimated 44,000 men
and women stitches in the Sialkot region of Pakistan involved in the production of 35
million footballs every year. International campaigns in the 1990s have succeeded in
virtually eliminating child Labors by gradually moving production away from home
based stitches to independently monitored stitching centers and providing constructive
alternatives for children such as basic education and skills training. The centers are
operated by the main factories or by subcontractors and are segregated by gender to
comply with religious and cultural values. However, low pay and a lack of social
benefits remain issues for workers in the industry.
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Company Vision:
The Vision of Talon sports company to work with utmost devotion and boast
up the standard of sports good with in flinching efforts in challenging conditions and
situations
Company Mission:
The mission of Talon Sports Company is to provide society with superior

products but developing innovation and solution that improve the quality of life and
satisfies customer need, and provide to employees state of the art opportunities to grow
and compensation.
Company management system:
Product line:
Footballs
Basketballs
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Rugby balls
Gloves
Garments
Shoes
Socks
Protective equipments
Knit wear
Business Type:
Manufacturer, Trading Company, Buying Office
Manufacturing:
Manufacturing is the production of goods for use or sale using labor and machines,
tools, chemical and biological processing, or formulation. The term may refer to a range
of human activity, from handicraft to high tech, but is most commonly applied to
industrial production, in which raw materials are transformed into finished goods on a
large scale.
Trading Company:
Trading companies are businesses working with different kinds of products which are
sold for consumer, business or government purposes. Trading companies buy a
specialized range of products, maintain a stock or a shop, and deliver products to
customers.
Market Share:
They do imports and exports mainly. they make products when they
received orders from their customers, as they do not have any brand under which they
work, so their market share cannot b estimated.
Capital Investment:
Talon sports initial capital investment was 5millian rupees.
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Catalogues:
1. 1 Shoes
2. 2 Apparel
3. 3 Balls
4. 4 Knit wear
1 Shoes:
1. In shoes department they made 4 different type of shoes categories:2. A casual
3. B canvas
4. C safety
5. D official
2 Apparel
1. In apparel department they made 2 different type of shoes categories:2. A Team wears
3. B Casual wears
Capital Investment:
Talon sports initial capital investment was 5millian rupees.
3 Balls
A Footballs
B Volleyballs
C Rugby balls
D Basketballs
E Butyl & latex
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F Bladders
4 knit wear
A Gloves
B Kung fu
C Uniforms
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Organization structure:
Chief
Executive
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Joint
Body
Designation
Tanveer Ahmed
Mr Tanveer Ahmed is president of Talon Fair Trade Workers Welfare Society since
2009.He is worker in Talon Sports Factory (Bladder Department)Since 1998.He is
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worker Representative in joint body as per FLO guidelines

Shahid Cheema
He is Vice president of Talon Fair Trade Workers Welfare Society since 2009
He is a Supervisor in Talon Sports (Garments Department) since 1999.
Assad Bajwa
Assad Bajwa is General Manager of Talon Sports since 1997. He is management
representative as per FLO guidelines. He is Seceratery General of Joint Body of Talon
Fair Trade Workers Welfare Society since 2006.
Ch. Nasir Iqbal Baryar
Ch. Nasir Iqbal Baryar is Director of Talon Sports Factory. He is Member of Talon
Fair Trade Workers Welfare Society
Ch.Ansir Iqbal Baryar
Ch.Ansir Iqbal Baryar is Director of Talon Sports Factory. He is Member of Talon Fair
Trade Workers Welfare Society
Zahida Parveen
Zahida Parveen is a football stitcher in Chak Gillan stitching center since 1999.She is
Member of Talon Fair Trade Worker Welfare society.
Bushra Parveen
Bushra Parveen is a football stitcher in Chak Gillan stitching center since 1999.She is
Mohammad Yousaf
Mohammad Yousaf is male football stitcher of Talon Sports stitching center inside the
factory. He is a member of Talon Fair Trade Worker Welfare society.
Rizwan Majeed
Rizwan Majeed is a male worker in Talon Sports factory in Shoes Department. he is
Miss.Samra
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Miss Samra is a worker of Talon Sports factory in Shoes Department. She is Member
of Talon Fair Trade Worker Welfare society.
Mohammad Javed
Mohammad Javed is a Football Stitcher in Dheera Sandha Stitching center.He is
Major Competitors:
There is many more companies to challenge the talon sports. Every company tries to
make good product from others. They had much big competition between them. Some
of the challenges companies are.
Silver star
Penna over sees sports
Forward sports
Awam sports
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Hilbro sports
Introduction of All Departments at organization.

The following departments presently working at this organization are names are as
under.
There are 17 departments in the organization. and there are 507 no of employees
in the organization.
Department Name
No of employees
BOD (Board of director)
05
Management
19
Finance & Accounts
05
General services
42
Security
14
Information technology
01
Export
05
Import
01
HR
05
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Stores & procurement
20
Soccer production
35
Bladders production
04
Garments production
217
Shoes departments (safety)
30
Shoes production(canvas)
57
Shoes production (kungfu)
34
Production martial arts
13
Total
507
Talon employees Computer software of organization.

Employee management
Time and attendance
Loans and advances
Payroll
Transport
Reports
Overtime
Shift scheduling
Total personal data of organization are saved in this software.
In employees management there are many more options.
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Employees management:
Employees
Link designation
Employee facility
Employee deductive
Employee allowance
Employee leave
Employee salary allowance
Short leaves
Late coming employees
Early coming employees
Employee search
Block employee
Employee full n final
Employee file
Unblock employee
Change type
Time and attendance
Leave categories
Holidays
Employee attendance
Daily attendance
Hand geometry
Short leaves process
Short leave approval
Loans and Advances
Loan categories
Loan requests
Loan approval
Pre payments
Advance request
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Advances approval
Payroll
Salary
Facility
Allowance
Taxes
Shifts
Salary structure
Deductions
Reports
Major Managerial Policies:
SOCIAL POLICY
TALON SPORTS is committed to establish and maintain a

Social System(based on requirements of SA-8000:2008 standards)
to ensure compliance with legal, ethical and social obligations
towards employees, customers and society through following
coordinated efforts.
We condemn child labor
We condemn bonded labor/forced labor
Healthy and Cooperative working relationship among employees and employer
Encourage freedom of association and employees participation at all
level. We condemn discrimination on any ground.
Ensuring applicable requirements of local rules / regulations
Applying national / international recommendation / guidelines for
employees betterment
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We provide all the benefits, allowances to our workers as defined in

local laws/rules
Director
TALON
SPORTS
ENVOIRONMENTAL
MGT
SYSTEM
PROCEDURE
1. SCOPE
This procedure covers the talon Sports production operations and related commercial
and technical activity.
2.
RESPOSIBILITEY
Enforcement of environmental system in Talon is the Direct Responsibilities of

top management and subordinate departmental heads and production process
owners.
3.
PROCEDURES
Talon Sports is implementing environmental management system it has an

environmental policy and has conducted environmental aspects and their significant
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impact analysis. (Detailed sheet attached)

3.1
Environmental significant impact analysis has identified the following areas
for complains action.

(i) Noise pollution control
(ii) Emission control
(iii) Waste management (a) Solid (b) liquid

Waste (iv)
Energy conservation/pressure
conservation (v) Chemicals Handling& Smell

control
A rise analysis and hazard identification survey was conducted the result
3.2
Noise Pollution Control
Risk analysis and hazard identification study /analysis was conducted and areas
identified with different noise levels as corrective actions ear plugs & ear muffs as
personal protective equipment is issues to employees in affected areas free of cost and
noise pollution monitoring is being dun at regular intervals.
3.3
Emission Control
There are two main areas of Emission

(a)BOIR
b) JENRATOR
(c) CANTEEN KITCHEN
Through the emission is with in safe range periodic monitoring in being
conducted to ensure that the equipment performance is with in safe operating
range.
3.4
Waste Management
(a)Solid Waste
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Solid waste is generated in the following areas /processes

(i)
Knitting (Commercial) Paper Cones, pocha yarn, reject ferric
(ii)
Dying Commercial Reject Fabric
(iii)
Cutting Large Waste-Roll ends body parts-Small Waste table cutting
(iv)
Stitching Trimmings, rejects garments
(b) Other Solid waste generated is

(i)
Reject Cartoons
(ii)
Reject Polly bags
(iii)
Rejects /Let overs of stitching thread cons
(iv)
Empty plastic chemical containers
(v)
Mettle Waste (Used Mattel Parts, Oil Filters, Metal empty Containers
All solid waste is disposed of throwing contractor for recycling and ruse .it is ensured
that all waste disposed of is not allowed to contribute to environmental degradation by
the contractors.
(c) Liquid Waste

In Talon there is no dying department since dying is totally done commercial there
for there is no effluent treatment required.
(d) Sanitary Liquid waste is disposed of properly after treatment.
(e) Resource conservation/energy conservation awareness is generated through
training to inaccurate habit of energy /recourse conservation.
Chemical Handling /spills
Chemical handling is restricted to individuals in store /Departments who use
protective equipment and spills are monitored and handled in a safe practice spills
are treated as per their data sheets (MSDS)
3.5 OIL/GREASE/DIESEL
Drained oil of all machines/vichels is collected and disposed of heating /kitchen
burners. Entry of pollution buses /trailers in to the factory is restricted to discourage
environmental degradation through pollution emissions.
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GOVERNMENT OF PAKISTAN
COLLECTORATE
OF
CUSTOME
AND
CENTRAL
EXCIS
GUJRANAWALA
C.NO.11(22)16_MISC/SMB/94/560
DATED 10-1-99
STANDING ORDER NO.01/99
SUBJECT: REGULARIZATION OF EXPORT PROCEDURE
In order to streamline the procedure relating to export of goods at Symbrial dryport and to
provide necessary safeguard against any fraudulent clearance misuse of the facility
following detailed
procedure is prescribed which will be sumetly followed by the
exporters ,their clearing agent, the customs staff and Sambrial Dryport Trust Authorities.
The exporter/Clearing Agent will file nine copies ..
Extra copy will be accepted. If shipping bill consists of more than copies. The extra copies
will be detached and returned to the customs clearing agent.
As soon as the vehicle carrying goods meant for export enters the dry port premises in
specified hours i.e. between 9.00AMto3.00PM, following particulars of the vehicle and
consignment loaded thereon will be entered in the entry register by the customs Inspector
posted at dry port gate
Custo
Vehicle
Contain
Name and .Descrip
.No of
.Country .Name
.Sign
Exit
ms/
No.
er
address of - tion/
cartons/
of dest-
of
of
Date
Entry
Size/Ty
the
Nature
package
nation
clearing
clea-
With
No
pe
Exporter
of goods
agent
ring
S/B
Agent.
NO/
LCL/PC
baled
declared
dt
And
Vehi
cle
No
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No vehicle will be allowed to enter port area if the consignment loaded on it does not bear marks
and No. or from E No. and airway bill number.
After verification and entry of aforementioned particulars of the incoming consignment, the
custom Inspector at the gate will stamp PASSED IN FULL on all the copies of shipping bill
and allow the vehicle to go to the relevant shed in the dry port.
Dry port..
6 The goods will be off loaded in the presence of shed incharge of samberial Dryport Trust who
will affix his signatures and stamp on original shipping bill and enter the particulars of the
vehicle/consignment in the Cargo receipt Register maintained by them. Consequently incharge of the
export entry section shall prepare a list of shipping bills received in the section indicating the allotted
numbers to such shipping bills. The list shall be randomly verified by the Assistant Collector as per
received shipping bills sent to the computer section for marking. The first computer marking shall be
completed by 10.OO AM/ further followed by following lists with an interval of one hour till all
export consignments received on the port are endorsed in the entry section, computer marking done
and consequently marked to the respective examining officers. The marking of the shipping bills
shall be strictly done through computer and no discretionary power shall be exercised at either level
of the officials working in the export sections including the supervisory tier.
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ROLE OF THE EXAMINING OFFICERS
7 After shipping bills have been computer marked to the examining officer, he shall select
at least 20% of the cartons of the export consignment at random and shall make 100%
examination of these cartons. The examining Inspector will also intimate the shed incharge of
the Sambrial Dryport about examination. The examination report
shall be endorsed on the reverse of the shipping bill keeping in view following factors:i)
Examination to be conducted keeping in view the declaration of the

exporter/clearing agent.
ii)
Weight of the consignment. iii)
Declared quantity.
iv)
Detailed description of the goods including quality, size, nature
Of raw material used, apprehension of drug trafficking, brand name

Use of bank guarantee material with specific reference to the bill of entry vides which
the bank guarantee material was imported.
v)
vi)
Admissibility of rebate in accordance with SRO.

Any other angle relating to the examination and intellectual property rights.
In case, the consignment is found as per declaration, the examining inspector will make a report to
this effect on the reverse of shipping bill as well as on the cargo receipt register maintained by the
Sambrial Dry port Trust authorities. How ever, in case of some discrepancy, he will enter his
Observations in red ink on the shipping bill as well as in cargo receipt register.
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9 After completion of the examination report, on reverse of shipping Bill Inspector

examination shall refer the shipping bill to his respective deputy superintendent incharge who
shall select 10% of the cartons including those all ready examined by the Inspector at random
and examine the same as per the parameters described above. Deputy superintendent shall
also give specific emphasis to the element of drug trafficking and shall visualize the whole
consignment from that angle keeping in view the profile of the exporter/ clearing agent. In case
the consignment is found as per declaration, the examining inspector will make a report to this
effect on the reverse of shipping bill as well as on the cargo receipt register maintained by the
sambrial Dryport Trust authorities. How ever, in case of some discrepancy, he will enter his
observations in red ink on the shipping bill as well as in cargo receipt register. The shipping bill
will then be submitted to the superintendent for let export who shall allow the let export on
his due satisfaction regarding the proceedings already completed and may make discretional
check if so required and will then be handed over to customs clearing Agent.
10.
In case of containerized consignments, the same shall be examined by the superintendent
Export himself keeping in view all the angles of examination and in case of a consignment
loaded in 40 feet container the shall be examined by the Assistant Collector Export himself. The
Assistant Collector Export shall also make at least, to visits to the export sheds daily for
over all supervision of export examination and random checking of the consignments already
examined by export section
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11.
In case of consignments, where the bank guarantee material has been used endorsed
examination report shall be routed up to the level 0f Assistant Collector Export and then the
shipping bill shall be sent to the Assistant Collector bank Guarantee who shall depute an
inspector from the bank guarantee section for physical verification of the bank guarantee
material in accordance with the representative sample detained in the bank guarantee file.
Bank
Guarantee inspector, after making due verification, shall endorse his report of
verification both on the shipping bill and on the note sheet side of the bank guarantee file
regarding quantity and description of bank guarantee material to be re-exported in the under
reference consignment. His report shall be approved by the Assistant Collector bank
guarantee section and consequently the shipping bill shall be sent back to the section for
further necessary action.
12.
There shall be two loading inspectors, deployed by the export section,under whose
supervision, invariably, all the export consignment shall be loaded on the containers and
duly sealed in their presence. The sealing process shall be kept under close watch by the
loading inspector.
13.
One Inspector Customs will coordinate with documentation department of Dry port
Trust to confirm/ verify the documents received there. he shall consult the cargo receipt
register and after his satisfaction about
genuineness of the consignment, affix his stamp
"allow loading" on the shipping bills.

14.
No permission to change container will be granted after the consignment has been
examined by the Customs staff. All such requests would be made to the proper officer
of Customs before examination-of the consignment.
15.
Examination/Loading of goods will he completed by 6.00PM and dry port gate will
be sealed be customs/Sambrial Dry port trust latest by 7.00PM.

16.
For exit of export consignment, Sambrial Dry port Trust issues export summary, convey
Note, and manifests which are attested by inspector loading and operation Manager of
Sambrial Dry port Trust. The Deputy Superintendent/ Inspector incharge of outer exit gate of
the dry port, will examine these documents carefully, satisfy himself about their genuineness
and after entering the particulars of me consignment in the relevant
register affix the
PASSED OUT stamp on summary and convey note with his signature and allow exit of
goods.
Page 41 of 89
FIRE SAFETY&EVACUATION PLAN
1. Scope: Head Office/Factory and Factory Units of Talon Sports (Pvt) Ltd., Sialkot.
2. Purpose: To Establish and maintain Fire Safety and Evacuation Plan to control fire and
incidents
3. Responsibilities
1. Managers
2. Department Heads
3. Shift Supervisors
4. Security Guards
5. Floor Cleaners
6. Helpers
For the purpose of fire and evacuation the different Deptt. are divided into the following Sub
Sections:1. Cutting / Embroidery
2. Stitching / Packing
3. Shoes & Gloves
4. Production Soccer
5. Store & Ware Houses
6. Offices
All employees have been instructed to assemble outside the premises on the road (ASSEMBLY
AREA) in case of fire / evacuation. They will wait for instructions from Admin Officers and act
accordingly.
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4.
FIRE FIGHTING&EVACUATION
On the out break of fire, very first person, who will see the spark, will try to put the fire off and
start shouting. " Fire, Fire, Fire......" Admin Officers / Shift Supervisors will blow fire Alarm
(Both Electric & Bell) and evacuation will start. Workers will leave the Departments from the
gates without creating any panic. In about 2 minutes time the Deptts. will be evacuated.
In-charge Generator room will Switch off the power and cut electric supply, only emergency lights
will be on. Sufficient number of fire equipments (Extinguishers, Sand and Water buckets etc.) have
been fixed and provided
in the Deptts. as per required standards. Regular training is imparted to handle and operate these
equipments. Emergency Exits are marked and workers are aware of these places. Production floors
are non-smoking areas and open smoking spaces are out side Production Areas.
5.
FIRE FIGHTINGTEAMS
Managers Admin will be over all co-ordinator for the execution of Fire, Safety and Evacuation
Plan. Admin Officers are nominated as fire and safety in-charge and will work under the
guidance of Managers Admin. To fight and extinguish the fire following parties are nominated:1. Fire Fighting Party
2. Fire Picketing Party
6.
FIRE FIGHTINGPARTY
On the out break of fire this party will rush to the place of fire and will extinguish the fire. They
are trained in the use of fire Equipments. Shift Supervisors on duty will be incharge of this party
and duty Security guards will assist him. Rest of the Admin Staff will rush to Shift Supervisor and
help him as per his instructions. In case more men are required, Admin Officers will call workers
from the Assembly Area for the assistance of Shift Supervisors.
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7.
FIRE PICKETINGPARTY
This party is responsible for the protection of fire effected area to avoid any theft and
pilferage of material. Dept. Heads will nominate a person who will cardon the areas and
not allow any body to enter, or remove any thing from the site. If fire is brought under
control, by own staff and there is no damage to the factory, Admin Officer will again
blow the all clear Hooter and normal work will start. However if the fire is beyond own
Control, help will be sought from local / Municipal sources. Managers Admin will decide
to take help from outside or vice versa. Important Tel. numbers are as under; Fire Brigade
Sialkot -16
8.
GENERAL
Fire practice and Evacuation Drill is carried out quarterly and proper record is maintained
by Admin Officers. To avoid fire and for better environment, following steps are taken :8.1 Smoking is not allowed at the Shop Floor and separate areas are provided
for smoking.
8.2.Generator Room is out of bound for operators and workers. Only
Electricians and Maintenance staff is allowed to go in the workshop and
Generator Room.
8.3.Electric Panel and Circuit Breakers are covered and only authorised
persons are allowed access to these.
8.4.White Patrol and other Chemicals are kept at secured places from where
only required quantity is issued / drawn for the use.
8.5 At the close of Shift and Break time all lights are switched off and
Supervisors ensure that no machine / motor is left on.
8.6.All fire equipments are tested and kept in serviceable condition all the
times. Each fire Extinguisher has a card attached to it which is initialed by
Admin Officers every month. In case any equipment develops some fault or
require replacement, it is got repaired / refilled / replaced.
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9.
MEDICAL
First Aid boxes with necessary medicines are provided on the floor. Security Staff is trained to
give first aid. However serious cases are shifted to the nearest Hospitals.
10.
ACCIDENTS
All accidents and incidents of Fire / Injuries, may be small or big, are recorded in the Medical
Log Book, Maintained by Admin Officers. Minor injuries are ignored and major cases, if any, are
investigated and remedial measure are suggested to avoid reoccurrence.
Page 45 of 89
LABOUR MANAGEMENT GRIEVANCE

1.0
PURPOSE
The purpose of this procedure is to establish a labor management grievance

procedure to mitigate workers complaints and redress their grievances.
2.0
SCOPE
This procedure applies to Talon Sports (Pvt) Ltd.,

Sialkot
3.0
REFERENCE
WRAP principle "Freedom of Association and right to Collective

Bargaining".
4.0
RESPONSIBILITY
The compliance officer is responsible for establishing and
control of Suggestion &
Complaint Box and Labor Management Grievance Committee.

5.0
ROCEDURE
5.1
COMPLAINT AND SUGGESTION
BOX
Compliance officer will establish a reasonable number of suggestion and complaint
boxes to receive complaints and suggestions from the workers and will collect the
suggestions and complaints periodically and put up to management for their review
and resolutions to ensure better labor management working relations.
5.2
LABOR MANAGEMENT AND GRIEVANCE
COMMITTEE
Compliance officer will hold a monthly meeting with the representatives of workers and
discuss with them grievances if any which need resolution by discussion with the
management. He will put up the grievances to management and seek mitigation of
their grievances with mutual discussion.
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CARGO SECURITY
1:0 PURPOSE
The purpose of this procedure is to establish a secure Cargo Protection
System to ensure security against contamination by terrorist, drug interdiction
and customs compliance.<
2.0 SCOPE
This procedure applies to all Production Lines and Associated Departments of
Talon Sports (PVt) Ltd..
3.0 REFERENCE
Buyer's Code of Conduct / WRAP Standard
4.0 RESPONSIBILITY
General Manager/s overall responsible for the proper functioning of the Cargo
Security System to ensure that shipments are not contaminated with drugs
and comply with customs law at home and worldwide.
5.0 PROCEDURE
WORK PLACE SECURITY
5.1 Manager Administration is responsible for factory buildings security and ensuring that
no un-authorized person is allowed to enter into the factory premises.
5.2
Each Production Line Manager / Incharge is responsible for: a)
Ensuring that no un-authorized person is allowed access into finishing ' area of
the production line particularly into the carton packing area.
b)
Ensuring that the cartons are placed in a secure area to prevent any tempering.
c)
Conducting piece and weight verification before sealing the cartons.
d)
Placing the seal after verification of carton
e)
Maintaining a seal control record (after receiving input from buyer)
5.3 QA AUDITOR / QA MANAGER

5.3.1 QA Auditor will monitor the entire process and coordinate with the buyer's QA in
creating a secure cargo protection system.
5.3.2 QA Manager will also coordinate with buyer QA during inline and post
Page 47 of 89
TALON
production quality in physical examination of the security of the facility and reporting incase
of
a)
In-adequate security measures so that the matter is brought to the notice of the
factory management.
b)
Corrective / remedial measures are initiated if any inadequacy is noticed.
5.3.3 QA auditor is responsible for checking that all cartons are being properly sealed at the time
of
a)
Daily internal audit
b)
Pre-final audit
c)
Final audit
5.4 MANAGER STORE

Manager store will ensure security of sealed cartons while they are in the store and will
ensure safety against tempering by un-authorized person while they are under store custody.
He will also exercise control through his storekeeper for proper receipt and issue of cartons as
per Store's Procedure
5.5 MARKETING DEPARTMENT
5.5.1 Manager Marketing / Respective Account Manager will ensure that "Cargo Lifting
Advice to the Inland Carrier provides receipt of Quantity of cartons identified by marks
and numbers that they received from the factory for delivery to the Consolidator or
International Carrier.
5.5.2 The inland carrier will also provide the receipt from the Consolidator or the International
Carrier that he has received the quantity of cartons identified by marks and numbers in a
sealed condition.
5.5.3 The Inland Carrier will provide a receipt along with his bill that there was no difference in
the quantity of cartons handed over to him by the factory
and those he further transported to the Consolidator or the International Transporter.
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6.0
General Safety Precautions

a)
Unauthorized access to cargo areas is prohibited
b)
Visitors are strictly controlled by gate security. Visitor Pass System is
implemented.
c)
Visitors records or logs kept by security staff
d)
Employee identification system is strictly checked by security
e)
Cargo lifters display their identification at the time
of cargo lifting.
7.0 RELATED DOCUMENTS
- Inter Department Goods Transfer Note
7.0 ESTABLISHING CONTAINER LOADING BAY

7.1 Each shipment loading will be Video Monitoring to ensure shipment cargo proper
loading and video monitoring for record keeping purposes. the video records will be
maintained for back reference
check if required by the buyer for minimum of 03 months or till cargo is
received at the destination.
8.0 personnel Employees working in sensitive areas such as finishing/packing and
Security shall be subjected to back preference checks at the time of engagement and
subsequently period/interval of checks to be established by the relevant departments.
9.1 CONTAINER CHECKING AND SEALING ARRANGEMENT.
9.1 at arrival each container will be completely checked for total emptiness and
free from any objectionable material.
9.2 After loading the cargo the containers gates will be secured properly and
sealed.
9.3 Seal control process will be observed and controlled .
9.4Seal will be kept and secured by export department and no
authorized person will be allowed access to it.
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CHILD REMEDIATION POLICY

Talon Sports (Pvt) Limited does not use child labour. We don't employee personnel
under 18 years on either contract of full time job. We also ensure "No Child labour" in
our supply chain. In case an individual under 18 years found working full time in our
supply chain, we categorize him/her and provide remediation as per procedure.
Responsibility:
Internal Monitoring Department and security.
Procedure:
Internal Monitoring Department in coordination with Time Office and Security ensures
the implementation of Company's Policy to employee adult labour. And monitor will
ensure that proof of age for all employees is being maintained in their files. During
monitoring if a person is found under 18 years. It will be categorized as:
Being 15-18 years
Category A
Being under 14 years
Category B
For Category A, young worker(s) will be enrolled in nearest non formal education
center being operated under CSDO(social arm of Sialkot Chamber of Commerce) and
duration of course will be intimated to HRD for follow up and monitoring.
Upon completing 18 years such workers could be employed subject to fulfilling other
employment conditions.
For category B, worker will be removed from work and be enrolled in a formal
education center near to his/her residence and intimated to HRD for follow up and
monitoring for retention in school.
Financial resources for both categories will be put up in Grievance Committee and will
be utilized for remediation of Child/Young worker up to completion of basic
compulsory education/attaining 18 years of age. Progress will be shared in quarterly
meeting of Grievance Committee.
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CUSTOM COMPLIANCE
Purpose
To establish and maintain a documented system to establish compliance with
applicable custom laws and regulation and to make sure that all the required documents
are made and kept in record.
Scope
All the shipments that are sent abroad Pakistan
Responsibilities
General Manager /compliance officer is responsible to carry out the activities in accord
ness with this procedure.
Procedure
5.3
Compliance officer checks documents comprises of (Order Sheet Performa
Invoice, Cutting Record, Stitching Record, Cropping Record, Final Checking Record,
Packing Record, Shipping Documents, LC Copy Packing List, Bill of Lading/Air Way
Bill)for every shipment and keep its separate file, as per order and get it approved by
General Manager before delivery of the shipment.
5.4
Compliance officer keeps up date the equipment inventory files and up date it
accordingly in case of any addition and deletion. The list is reviewed and signed by GM
upon every edition/deletion.
03. Compliance officer keeps the Handling, Storage, Packaging and Delivery form
updates for every shipments and get it signed by General Manager before departure of
shipments.
Page 51 of 89
WRAP COMPLIANCE MANUAL

SECURITY
Purpose
To establish and maintain a documented system to establish and ascertain that the
entire production facility is guarded and control so that the consignment is delivered
safe with out introduction of illegal shipment of Drugs explosive,bio-hazards and other
contraband.
Scope
All the shipments that are send a broad Pakistan
Responsibilities
General Manager/Compliance officer is responsible to carry out the activities in
accord ness with this procedure.
Procedure
4.1
General Manager issues job descriptions to security guards in order to prevent

entry and exit of any irrelevant materials especially Drugs, Explosive, bio-hazards
and other contraband.
4.2
Time office in charge issue Gate passes to every visitors and write details of the
same in a register. All The entire Visitors card with number that is to be deposited
back to the time office in charge upon departure.
4.3
General Manager makes sure that none of the visitors goes around the facility or
enters any department with out official notification.
4.4
General Manager makes sure that all the employees wear identification tags until
they leave the facility.
4.5
General Manager makes sure that strong individual and company wide references
have been made available before hiring any security guard appointing
clearing/Forwarding agent contracting shipping company and all relevant
personnel in this very regard.
Page 52 of 89
WRAP COMPLIANCE MANUAL

ENVOIRMENT
Purpose:
To establish and maintain a documented system to operate in an po free manner via
following all applicable environmental rules, regulation standers and to observe
invoirmentley conscious practices at all in the premises.
2.0
Scope:
Entire premises of the company.

3.0
Responsibility:
General Manager/Compliance officer is responsible to run to operations in the
erspective of this procedure.
5.3.4 Procedure:
a) Compliance Officer makes sure that all the personnel whose job real the
envoirmentley concerned areas are aware of there responsibilities.
b) compliance officer make sure that all at he corresponding tests have been under
taken in the perspective of applied NEQS environmental quality standards )and
records are kept in separate
c) compliance officer makes sure that the procedure for preparedness and response
is available and all the workers have been to play there part in case of any emergency
related to accidental..hazardous chemicals.
d) Compliance officer keeps a copy of agreement for utilizing of solid ..
e) Compliance makes sure that entire facility full fills all its requirements and run with
the concept of an environmental UNIT.
Related References:
Industries and factories Act 1934 Chapter III (14) NEQS
Page 53 of 89
Production Process:
Process of Football Production

Design Panal:
Desigin Panal selects the specific design to be printed on the football.Design may
be a logo of the company or trade marks.
Cutting:
After designing come the cutting procedure. At this stage the whole patteren or design
is cutt of in small pieces.
Printing:
This stage contains printing of selected design on the pieces. Different parts of the
whole design an printing on the pieces.
Stiching:
Printing pieces are stiched at this level.The visibility of design is maintained in stiching
procedure, so that after completion the football designful.
Quality Inspection:
After stiching the football is sent to inspection department.Which
inspects the balls according to specific crieteria.This procedure cheaks design Patteren, Printing
Standard, Stiching quality etc.Product fellfilling the standard selected for packing and others one
not.
Packing:
Products selected or passed by inspection department are packed at this stage.
Labeling:
The containers of products are labeled before distribution of the containers.
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Process of Garnment Production

Design Panal:
Desigin Panal selects the specific design to be printed on the garnment.Design
may be a logo of the company or trade marks.
Cutting:
Printing:
Stiching:
procedure, so that after completion the garnment designful.
Page 55 of 89
Quality Inspection:
After stiching the garnment is sent to inspection department.Which
inspects the cloth according to specific crieteria.This procedure cheaks design Patteren, Printing
not.
Packing:
Labeling:
The containers of products are labeled before distribution of the containers.
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Process of Shoes Production
Design Panal:
Desigin Panal selects the specific design to be printed on the shoes.Design may be
a logo of the company or trade marks.
Cutting:
Printing:
Stiching:
procedure, so that after completion the shoes designful.
Quality Inspection:
After stiching the shoes is sent to inspection department.Which inspects
the shoes according to specific crieteria.This procedure cheaks design Patteren, Printing
not.
Packing:
Labeling:
The containers of products are labeled before distribution of the containers
Page 57 of 89
Fair trade:
Talon Sports was certified by Fair-trade Labeling Organizations International (FLO) in 2002
and now supplies Fair-trade markets in the UK, Italy and Germany.
The objective of Fair-trade in the sports ball industry is to ensure good working conditions for
factory and stitching centre workers and to provide decent wages so that employees can
send their children to school rather than out to work. The additional Fair-trade premium is
invested in projects that support the empowerment and social development of workers and
stitches.
Although there is a government-set minimum wage for the sports ball industry in Pakistan,
workers are often paid less and struggle to provide for their families. All Fair-trade certified
producers pay factory workers at least the minimum wage, and piece-work rates for stitches are
calculated so that the minimum wage can be earned within normal working hours. Talon Sports
pays its workers 50% more when they produce Fair-trade balls.
Fair-trade buyers negotiate a contract price with football producers in the same way as
conventional buyers, with the stipulation that the agreed price must be above the cost of
production. Fair Deal Trading, a UK company licensed to import and market Fair-trade sports
balls in the UK, sources from Talon Sports and has. Negotiated a contract price 20% higher
than the usual price. This enables Talon to pay their workers 50% more when producing Fairtrade balls.
Page 58 of 89
Fair trade premium:

On top of the contract price, Fair Deal Trading pays the Fair-trade premium which is used to
fund social projects that benefit Talon employees. The premium, 10% of the contract price, is
paid directly into the bank account of the Talon Fair-trade Workers Welfare Society, a joint
body of management and elected workers representatives, which decides on the projects to be
funded by the premium payments.The Fair-trade premium has been used to provide basic
health insurance, a first for workers in this industry. Eighteen-year-old Sameena Nyaz works
at a village stitching centre an hour from Sialkot where they stitch footballs for Talon
Sports. She recently needed a thyroid operation which would normally be a source of real
worry as medical care is very expensive. But her treatment was paid for by the healthcare
scheme set up by the Welfare Society and funded by the Fair-trade premium.The Welfare
Society has also set up a micro credit fund so that workers and their families can take out loans
to set up small businesses so that workers can increase their incomes and reduce their financial
dependency on stitching Brothers Zulafkar Ali and Saftaz Ahmad, both stitches with young
families to support, applied for a loan to start a tea shop in the annexed of one of the stitching
centers. A couple of years later and the shops monthly turnover is as high as their original
loan, providing them with a good additional income. In fact the milk used in the tea is supplied
by a neighbor who purchased a buffalo with the help of a loan from the credit fund. The
brothers now want to take out a further loan so that they can expand their product
range to include convenience products and household items.Forty-five-year-old Mohammad
Riaz is pleased that he is now able to provide better for his wife and four children. His
main occupation is stitching footballs for Talon Sports, which gives him the opportunity to
increase his wages when stitching Fair-trade balls. But like most of his fellow workers he also
works the fields to supplement his income. He cultivates winter wheat and a main crop of rice
on his two hectares of land. A few years ago he took out a loan from the credit fund to help
pay for an irrigation pump. The next season he harvested a bumper crop of five tones which
he sold to the rice mill for 550. Further good harvests have allowed him to pay back the
loan, so replenishing the credit fund and making small loans available to his colleagues.
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Although only a small percentage of footballs produced by Talon Sports are Fair-trade
certified, it is clear that Fair-trade is having a positive impact on the lives of the workers.
And the extra income is contributing to economic development of village communities
around the stitching centers.
Main market of talon sports all over the world:

1. North America
2. South America
3. Eastern Europe
4. Southeast Asia
5. Eastern Asia
6. Central America
7. Northern Europe
8. Southern Europe
Total Annual Sales Volume:
US$5 Million - US$10 Million
Export Percentage:
91% - 100%
Page 60 of 89
Specialization
Financial analysis:
Financial analysis is a process which involves reclassification and summarization of information
through the establishment of ratios and trends.
Analysis of financial statements.

It refers to the examination of the statements for the purpose of acquiring additional information
regarding the activities of the business.
The users of the financial information often find analysis desirable for the interpretation of the
firms activities.
Note: The financial statements to be used for he purpose of analysis should Audited ones. The
audited financial statements give the analyst the auditors statements as to whether the record
represent a fair view of the companys affairs.
A financial ratio is a relative greatness of two selected numerical values taken from and
enterprises financial statements.
1. Liquidity Ratio
The ability of a business to pay its short term debts.
2. Solvency Ratio
The ability of a business to pay its long term debts.
3. Profitability Ratio
The ability of a business to generate profits for its owner.
4. Activity Ratio
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The effectiveness of management towards Utilization of resources.
5. Market Ratio
The strength of a business to achieve the short term and long term objectives of the business.
Liquidity: The ability of a business to pay its short term debts.
Items involved :
Cash in hand
Cash at bank
Receivables
Stock
Prepayment
Year concerned:
Current year : 2012
Base year : 2011
RATIO ANALYSIS
Name of the ratio: =Current Ratio

Formula
= Current assets/Current Liabilities
Year 2012
Year2011
=666465313/527924989
=812204148/601236139
=1.26 Times
=1.35 Times
Interpretation:
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Since current liabilities are usually paid out of the current assets, this ratio tell us that for every
single Rupee of current liabilities, how many current assets do the organization possess its shows
liquidity of the firm.
As per analysis current ratios goes on declining with the passage of time indicating that Talon
sports has lesser current assets to cover its current obligation whereas only in year 2011 Talon
sports was in position to fulfill its short term liabilities this downturn is due to lack of short term
investments, less stable cash position and repaid increase in trade and other payables.
RATIO ANALYSIS
Name of the ratio:
=Acid test ratio
Formula
= Current assets-Inventories /Current Liabilities
Year 2012
Year2011
=233573544/527924989
=271931605/601236139
=0.44 Times
=0.45 Times
Working: = Current assets-Inventories
For 2012:
666465313-432891769
=233573544
For 2011:
812204148-540272543
=271931605
Interpretation:
This ratio reveals true liquidity of current assets and excluding liquid assets inventories this ratio
helps gauging the solvency of the company as is actually tells that how many quick assets firm
possess to meet short term obligations like current ratio it also reveals a declining trend with the
Page 63 of 89
passage of time indicating that Talon sports has lesser quick assets to cover its current
obligations. The year 2012 shows inadequacy of Talon sports liquid assets to meet current
liabilities.
RATIO ANALYSIS
Name of the ratio: =Net Working capital
Formula
= Current assets-Current Liabilities
Year 2012
Year2011
=666465313-527924989
=812204148-601236139
=138540324
=210968009
Interpretation:
Working capital means the amount that current assets exceeds current liabilities its consider as
lifeblood of the firm usually it needs to be high enough as possible. This is all about increasing
trend in trade and other payables along with increase in current portion of long term debts.
Except in 2012 the working capital position of Talon sports is healthy,this is due to increasing
trend in Trade & other Payables along with high cost of electricity.
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Solvency: The ability of a business to pay its long term debts.

Items involved :
Periodic payment paying ability
Payment of original debt
Year concerned:
Current year : 2012
Base year : 2011
Leverage Ratios:
Name of the ratio: =Times Interest Earned Ratio

Formula
= EBIT/Interest
=Earnings before interest and tax/interest
Year 2012
Year2011
=37201831/27003940
=62238242/28876799
=1.37:1
=2.15:1
Working: = Interest-Bank charges

Page 65 of 89
For 2012:
32574769-5570892
=27003940
For 2011:
34811917-5935118
=28876799
Interpretation:
Time interest earned reflects the ability of a company to pay its financial cost (interest) A
ratio2.15 (200%) shows that the company covers the interest charges 2times and generally
(400%) is consider as a satisfactory. A higher ratio is always more desirable especially for the
creditors.
Hence there was loss is being suffer talon sports due to economic problems (High Load shading
of Electricity and increasing prices in Units & Material Prices high Labor cost) in 2012 as
compare with 2011.
Leverage Ratios:
Name of the ratio: =Debt Ratio

Formula
=Total debt/Total Assets
Year 2012
Year2011
=540228244/1430771915
=613320852/1090312745
=0.37:1
=0.56:1
Working: = Current Debt+Long term Debt
For 2012:
527924989+12303255
=540228244
For 2011:
601236139+12084713
=613320852
Page 66 of 89
Interpretation:
It is a commonly used ratio to measure the capital structure of the firm. From creditors point of
view, the lower the debt ratio, the better it is as it indicates more portion of shareholders funds
in capital structure in 2011 as compare with 2012. A ratio greater than 66% to 100% is consider
alarming for the providers of funds. The results in table tell that the ratio reveals downtrend. It
was high (but in range) in 2011 then goes on diminishing in next years. Even in 2010 this ratio is
more convincing for creditors. This is due to sound position of talon sports assets.
Leverage Ratios:
Name of the ratio: =Debt to equity Ratio

Formula
=Total debt/Total Equity
Year 2012
Year2011
=540228244/480930217
=613320852/476991893
=1.12:1
=1.28:1
Working: = Current Debt+Long term Debt
For 2012:
527924989+12303255
=540228244
Page 67 of 89
For 2011:
601236139+12084713
=613320852
Interpretation:
This ratio shows the portion of debt to equity in capital structure. Creditors generally like this
ratio to be high as it indicates high portion of shareholders funds in capital structure. Results are
low this is due to high portion of total debts in capital structure as compare to equity,is taken by
Talon Sports to meet the Firms Expensives.
Leverage Ratios:
Name of the ratio: =Debt to tangible Net Worth Ratio

Formula
=Total debt/Tangible Net Worth
Year 2012
Year2011
=540228244/902846926
=613320852/489076606
=0.59:1
=1.25:1
Page 68 of 89
Working: = Tangible net worth=Total Assets-Liabilities-Intangible
For 2012:
1430771915-527924989-0
=902846926
For 2011:
1090312745-601236139-0
=489076606
Interpretation:
This ratio is the calculation of what is the net-worth of tangible assets against debts and give
identification about if liquidation takes place what would leave for residual claimants after
fulfilling external claims.
The table shows that Talon sports has good position of tangible net-worth in 2011 against its
long term debts which is now in 2012 is unfavorable to fulfill its obligations in case of
liquidation.
Profitability: The ability of a business to generate profits for its owner.

Items involved :
Gross profit ratio
Operating profit ratio
Net profit ratio
Return on asset
Return on equity
Return on operating asset
Year concerned:
Current year : 2012
Base year : 2011
PROFITABILITY ANALYSIS:
Page 69 of 89
Name of the ratio:
=Net Profit Margin
Formula
= Net Profit/Sales*100
Year 2012
Year2011
=3938324/658105112
=19950003/644070016
=0.59%
=3.09%
Interpretation:
This tells the percentage of profit for every Rupee of revenue earned.
The higher the ratio the better it is.
In year 2012, a loss occurs due to high cost of electricity and results is in the percentage of return
lesser than 2011. In the 2012 there was hyper increase in prices of electricity by the Government
of Pakistan resultantly turnover decrease due to cost of electricity. Thats why net profit is
decreases.
PROFITABILITY ANALYSIS
Name of the ratio: =Return on Assets

Formula
= Net Profit after tax/Total Assets*100
Year 2012
Year2011
=3938324/1430771915
=19950003/1090312745
=0.27%
=1.82%
Page 70 of 89
Interpretation:
This ratio tells the profitability of the company for every Rupee of invested in total assets this
reflecting how effectively and efficiently the firms assets are used the higher the result, better it
is.
decreases.
Name of the ratio: =Return on Equity

Formula
= Net Profit after tax/Total Equity*100
Year 2012
Year2011
Page 71 of 89
=3938324/480930217
=19950003/476991893
=0.81%
=4.18%
Interpretation:
This ratio measures a corporations profitability by revealing how much profit a company
generates with money of shareholders have invested. A high return is always desirable.
Talon sports suffer a high cost of electricity sustain in 2012 which is result in negative figures. In
last, year a handsome income boost up the ratio which are shown positive results. This is due to
high portion of total debts in capital structure as compare to equity,is taken by Talon Sports to
meet the Firms Expensives.
Page 72 of 89
Name of the ratio: =Return on Investment

Formula
= Net Profit after tax/Total Equity*100
Year 2012
Year2011
=3938324/1422950897
=19950003/1422950897
=0.27%
=1.84%
Interpretation:
This ratio tells the profitability of the company for every Rupee of invested in total assets this
reflecting how effectively and efficiently the firms assets are used the higher the result, better it
is.
decreases.
Page 73 of 89
Name of the ratio:
=Return on operating Assets
Formula
= Net Profit after tax/Operating Assets*100
Year 2012
Year2011
=37201831/764306602
=62238242/278108597
=4.86%
=22.37%
Working: = Operating Assets=All Non Current Assets
Interpretation:
This ratio grasp the management attention on the amount of assets actually required to run
business, so that organization has theoretical assets level to achieve.
A typical result of this measurement is and ongoing campaign to eliminate unnecessary assets
due to high cost of production of talon sports this ratio has in negative figure indicating that
operating assets are fully utilized.
Page 74 of 89
Name of the ratio: =Operating Income Margin

Formula
= Net Profit after tax/Sale*100
Year 2012
Year2011
=37201831/658105112
=62238242/644070016
=5.65%
=9.66%
Interpretation:
Operating income margin is a measurement of what proportion of a companys revenue is left
over, before taxes and other indirect cost, after paying for variable cost of production, a good
operating margin is needed for a company to be able to pay for its fixed cost such interest on
debts.
A higher operating margin means that the company has less financial risk.
Page 75 of 89
Name of the ratio: =Gross Profit Margin

Formula
= Gross Profit/Sale*100
Year 2012
Year2011
=142365312/658105112
=170308424/644070016
=21.63%
=26.44%
Interpretation:
Gross profit margin is not an exact estimate of the companys pricing strategy but it does give a
good indication of financial health. Without an adequate gross margin, a company will be unable
to pay its operating and other expenses.
Figures for last 2 years shows that Talon sports has sound amount of gross profit to cover its
operating ,financial and other expenses.whereas,due to excessive cost of electricity, there was
decreases in figure.
Page 76 of 89
Activity: The effectiveness of management towards

o Utilization of resources
o To generate sale
o To collect its receivable
o To manage its operating cycle
o To manage its cash conversion cycle
Year concerned:
Current year : 2012
Base year : 2011
Activity ANALYSIS
Name of the ratio:
=Total Assets Turnover
Formula
= Sale/Total Assets
Year 2012
Year2011
=658105112/1430771915
=644070016/1090312745
=0.45 Times
=0.59 Times
Interpretation:
Page 77 of 89
An effective use of total assets held by an organization is to ensure greater revenue to the firm
from table is evident that this ratio sustain over the years due to constant increase in both sales
and total assets.
Final result decreasing in 2012 cause of high cost of electricity and it is reveals that in future
TALON SPORTS has trend to generate greater sales volumes.
Activity ANALYSIS
Name of the ratio:
=Fixed Assets Turnover
Formula
= Sale/Total Fixes Assets
Year 2012
Year2011
=658105112/764306602
=644070016/278108597
=0.86 Times
=2.31 Times
Interpretation:
The Fixed Asset turnover ratio measures an organization's ability to generate net sales from fixed
asset investments. A higher fixed Asset Turnover ratio shows that the organization has been
more effective in using the investment in fixed assets to generate revenue.
This ratio indicates that TALON SPORTS has declining trend.
Sales as well investment in fixed assets improve with every incremental upcoming year.
Page 78 of 89
Market: The strength of a business to achieve the short term and long term objectives of
the business.
Items involved :
Internal factor Dividend (controllable)
External factor Market price (uncontrollable)
Year concerned:
Current year : 2012
Base year : 2011
Market Ratio:
As TALON SPORT is not listed company in any stock exchange. It is a Private owned
organization and did not pay any dividend. Its shares are not traded in stock exchange. Hence, its
Dividend per Share Ratio cannot be calculated. It is the portion of an organization's profit
allocate to each outstanding share of common stock. Earnings per share, is generally considered
Page 79 of 89
to be the single most important variable in determining a share's price. It is also a major
component used to calculate the price to earnings ratio.
AS said earlier, authorized shares are taken as outstanding.
Which is = 23000 ordinary shares of Rs.100 each.
Hence it is not a true picture for computation of earlier per share ratio.
Earning Ratio:
This ratio shows how much investors are willing to pay per Rupee of reported profits. This ratio
reflects price to earning ratio suggests that investors are expecting higher earnings growth in the
future.
As said earlier, per value of shares is taken as market value. Hence it is not a true picture for
computation of price to earning ratio. As the previous record indicates that random directions are
in different years. But actual story would be clear if actual market values are taken.
Page 80 of 89
Summary
By summarizing the above analysis we can say that the TALON SPORTS has a great strength of
its performance by exporting his product at Global level and generate high revenue because there
is a monopoly of TALON SPORTS and main weak point are political issue in its management
and the lack of electricity and the increase rate of electricity units, for the production of
electricity. Talon sports has great opportunity to expand his business growth by expanding his
target market at Domestic and International level.
Page 81 of 89
CHILD REMEDIATION POLICY

Child remediation policy
Talon sports (pvt) limited do not use child labor. We dont employee personnel under 18 year on
wither contract of full time job. We also ensure no child labor in our supply chain. in case an
individual under 18year found working full time in urea supply chain, we categorize hi,/her and
provide remediation as per procedure.
Responsibility:
Internal monitoring department and security. Procedure:
Internal monitoring department in coordination with time office and security ensure the
implementation of companys policy to employee adult labor and monitor will ensure that proof
of age for all employees is being maintained in their files. During monitoring if a person is found
less than 18 years. It will be categorized as:
Being 15-18year
category A
Being under 14year category B

For category A, young worker(s) will be enrolled in nearest non formal education center being
operated under CSDO (social arm Sialkot chamber of commerce) and duration of course will be
intimated to HRD for follow up and monitoring.
Page 82 of 89
Upon completing 18 year such workers could be employed subject to fulfilling other
employment conditions.
For category B, worker will be removed from work and be enrolled in formal education center
near to his/her residence and HRD for follow up and monitoring for retention is school. Financial
resources for both categories will be put up in grievance committee and will be utilized for
remediation of child/young worker up to completion of basic compulsory education/attaining 18
year of age. Progress will be shared in quarterly meeting of grievance committee.
SWOT ANALYSIS:
It is a situation analysis tool that helps managers identify internal strengths
and weakness external opportunities and threat, and the potential impact of these factors on
organizational performance.
Internal Analysis:
Strength:
The skilled and experienced labor of the company is a great strength .as well as
strictness in implementation of polices is strength for company .Company is also having
excellent labor force the other strength is that the turnover rate of labor is very low .It provides
insurance facilities to workers and the quality of product according to international standard.
Companys latest machinery for extra ordinary production is a great strength. The Exporting
aspect of the company has made it prominent in international market.
Weaknesses:
Besides having various strengths company also have some weak points e.g. is
advertisement is not beyond the required standard The government of Pakistan does not pay
Page 83 of 89
attention to the industries so there is no government supports to the company .They produces the
goods on the demand of the customers so there is no innovation. And other weak point is that
they are not the trend setter because of no innovation but the followers. The companys labor is
skilled but there is no efficient use of their skills.
External Analysis
Opportunities:
They have the opportunity if their product quality is enhances they can make the goods in
competitive of Nike. They have the opportunity in near future that they can launch things other
than foot ball garments shoes etc because of their latest machinery, they can also make variety
of the already available things.
Threat:
Terrorism in this region is a greatest threat for the organization .Company suffers a lot of
problems in import and export because the company mostly deals s with the international
markets. Due to political instability and terrorism this company is not receiving posit response
and feedback from international markets. The threat which all businesses are facing is the
Page 84 of 89
entrance of competitors in the market they are already having competitors in the market; if any
new competitors enters they will be pushed back badly.
Role of HR department:
The Human Resource Department deals with management of people within the organization.
There are a number of responsibilities that come with this title. First of all, the Department is
responsible for hiring members of staff; this will involve attracting employees, keeping them in
their positions and ensuring that they perform to expectation. Research has shown that the human
aspect of resources within an organization contributes approximately eighty percent of the
organizations value.
Positive
aspects
of
Roles
and
Functions
of
the
Human
Resource
Department:
Recruitment of Employees:
This is one of the most fundamental roles of the HR department. This is because this function
ensures that the Company under consideration selects the most skilful and competent person
from a sea of applicants at that time. This function involves evaluation of ability and
competency of potential employees in relation to what the Company needs. This role falls
under the Staffing role of management. If this function is performed well, then the organization
Page 85 of 89
will increase value consequently being on the right pathway to achieve its organizational and
departmental goals and objectives.
Improvement of Compensation Packages:
One of the major functions of the HR department is to motivate employees. This can be done
through rewards especially for those who have done well. The HR department needs to
evaluate performance of employees and those who have exceeded expectations should be
compensated for their actions. Research has shown that rewarding employees for good
performance is the number one incentive for keeping up this trend. These compensation
packages can come in the following ways;
Planning in the Organization
The Human Resource Department is placed with the responsibility of ensuring that it plans
adequately for all the organizations future engagements that will involve people. One important
aspect of this is planning for employees in the organization. It is important that the organization
ensures that all the employees under its wing are just enough to increase value to the
organization.
The Department must ensure that staff members are not too many because if they exceed this
amount, then the organization stands too lose. It must plan adequately to ensure that staff
members are not too few either, otherwise they will be overworking those who are already in
place. Consequently, there will be poor motivation resulting from fatigue.
The HR department is also bestowed with the responsibility of planning future organizational
goal in relation to people or clarifying these same goals to staff members. This function of the
department ensures that people in the organization have a general direction which they are
working towards. Organizations that have a clear direction are always more effective; those
members of staff will be more result oriented rather than just working for the sake of it. The
Department is also responsible for setting day to day objectives necessary for streamlining
activities within the organization and thus ensuring that work is not just done haphazardly
Problems in Recruitment
Page 86 of 89
The department may sometimes be unable to adequately coordinate and incorporate all the
employees needed in the Companys operations. One such example is the NHS. In the year 2004,
the organization was found to be wanting in its human resource departments functions. The
Company was recruiting a large proportion of its employees; 40% from Asian and African
countries. This means that the organization was draining medical personnel from those needy
countries and using them for themselves.
Problems in Remuneration
In the process of trying to motivate members of staff to perform better, the Human Resource may
make deals that eventually cause problems. A case in point is the Home Depot. This Company
has an employee Compensation policy that requires that one should be rewarded for the time
they have served the Company
Strategies to Improve Human Resource Departments Value to the Organization
Training and Internships:
New employees need orientation into the Companys functions and can also improve some
inefficiency that these new employees may have in relation to their skills.
Making Better Use of Time
The Human Resource is conferred with the responsibility of ensuring that all members of staff
perform to their best ability. It could improve this area by facilitating better use of time in all
departments within the organization. Time is one of the most crucial yet intangible assets of the
Company. The proper use of this resource could maximize production and achievement of
organizational goals
Improving Organizational Culture
Page 87 of 89
The Human Resource Department can try to improve organizational culture through a three step
procedure.
The first step of the process is observation. In this step HR finds out what makes ups or what the
companys culture is like. HR should also be very intense on the organizational needs. Here, HR
should realize that personal fulfillment works better and therefore should try to ensure that the
change is relevant to every staff member. In this stage, HR should try to explain to all staff
members or stakeholder the advantage of transforming the culture in the organization. This
should be made clear so that all can see the advantages at the individual level and not simply at
the organizational level.Then HR should try to eliminate all inhibitions in staff members minds.
It is possible that some may claim that they tried one or two strategies before and it did not
succeed. This are what are called cries of despair and HR should try its best to explain to staff
members the need of changing the culture of the organization. The next step is the analysis of
various aspects. Here, there is collection of data needed in making certain that culture changes.
This stage involves checking out the success features or the factors that can facilitate its success.
There should be calibration of data collected. Staff members should be made to understand that
there are no perfect situations for implementation of changes. The analysis should involve
assessing whether the information is sensible or not. Whether data gathered will be helpful or not
and if it is too little or too much. Staff members should be requested for data that will help
change the culture. Of course when trying to bring in change HR Department should have
perceived benefits, a deadline for execution and also the realized gains in relation to the change
in culture. In this step, there should be reality checks which should be done often. There should
also be continuous integration. Through this scheme HR Department should be able to change
the culture in the organization and add value to it.
The Human Resource Management teams main function is to manage people. There are
positive and negative aspects of this function; first of all, the HR department enriches the
organization through recruitment procedures and an example an effective HR team in this area
is Tesco Ireland. HR department also ensures that members of staff follow a general direction
by frequently clarifying and reminding them of the organizations goals. Besides this, they are
Page 88 of 89
also responsible for organizing incentives or compensation packages to motivate employees.

All these functions contribute towards organizational effectiveness.
Page 89 of 89

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University of the Punjab

IN THE NAME OF ALLAH THE ALL ALMIGHTY THE ALL MERCIFUL

Public Company?& Government Company?

Limited & Unlimited Company?

Company with a license?

Holding & Subsidry Company?

Limited liability Partnership?

Company Vission & Mission?

Company Management system?Major

Body Structure of Organization?

Joint Body Designation?

Introduction to all departments?

Major Managerial Plocies?

Labor Management Policy?

b. limits the number of its members to fifty (50) not including

persons who are in the employment of the company; and

persons who, having been formerly in the employment of the

d. prohibits any invitation or acceptance of deposits from persons other than

2. "Public company" is defined in section 3(1)(iv) of the Act and it means a

c. is a private company which is a subsidiary of a company which is not a

4. "Foreign company" is defined in section 591 of the Act and it means a

b. has established a place of business within India.

5. "Company limited by guarantee" is defined in section 12(2)(b) of the Act and

The Memorandum and Articles of Association of such companies are as per

6. "Unlimited Company" is defined in section 12(2)(c) of the Act and it means a

7. "Producer Company" is defined in section 581A of the Act and it means a

Provided that Producer Company may carry on any of the

b. processing including preserving, drying, distilling, brewing,

c. manufacture, sale or supply of machinery, equipment or

d. providing education on the mutual assistance principles to its

e. rendering technical services, consultancy services, training,

f. generation, transmission and distribution of power, revitalisation

g. insurance of producers or their primary produce;

h. promoting techniques of mutuality and mutual assistance;

i. welfare measures or facilities for the benefit of members as may

j. any other activity, ancillary or incidental to any of the activities

k. financing of procurement, processing, marketing or other

8. Companies with licence under section 25

b. intends to apply its profits, if any, or other income in promoting

2. The association may thereupon be registered accordingly and on

9. Holding & Subsidiary Company

where the first-mentioned company is an existing

where the first-mentioned company is any other company,

c. the first-mentioned company is a subsidiary of any company

Provisions affecting holding subsidiary relationship

b. Subsidiarys membership of its Holding company (Sec. 42 & 372A)

c. Obligation on the part of holding company to furnish certain information

d. Financial year of Holding & Subsidiary Company (Sec. 213)

e. Rights of Holding Companys representatives & members (Sec. 214)

f. Investigation of the affairs of the Subsidiarys Holding Company (Sec.

10. Limited Liability Partnership (LLP)

11. Vanishing Companies (applicable in case of Public Listed Companies)

None of the Directors are traceable.

TALON SPORTS (PVT) LIMITED SIALKOT

Introduction of the Organization:

Company Background and Present Status:

The mission of Talon Sports Company is to provide society with superior

Company management system:

worker Representative in joint body as per FLO guidelines

Penna over sees sports

Introduction of All Departments at organization.