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Mills Ltd.
Internship Report 1
Ahmed Fine Textile
Mills Ltd.
despite being the fourth largest cotton producing country, Pakistan's
share in global textiles and clothing trade is less than 3%.
Internship Report 2
Ahmed Fine Textile
Mills Ltd.
PROBLEMS & PROSPECTS
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Ahmed Fine Textile
Mills Ltd.
Cotton textile industry has made a spectacular progress over the past
51 years. At the time of independence o the country only two textile
mils were in existence, one Sutlej Cotton Mills Ltd. in Okara, Punjab,
the other Lyallpuor Cotton Mills at Lyallpuor, now Faisalabad. Both
the mills were owned by the renowned industrialist of the undivided
India. These units were self contained having all the departments,
such aspiring weaving, dyeing, finishing as well as procession &
printing, although the printing, of textiles was not as much developed
as it is now. After the independence the process of development of
the industry started picking up. In the year 1948, one more textile
mill which was set up by Valika"s was inaugurated by the Quaid-e-
Azam. In 1949 the country had only 78000 installed spindles and
3000 looms. The organized development of cotton textiles was
started in late fifties with the 1st five-year plan.
At present there are 503 mills installed in the country with an
installed capacity of 8.7 million spindles and 14000 looms. Out of 503
mills installed in the country, 418 units are engaged in spinning and
32 units in waste spinning.
Both cotton yarn and cotton cloth may be considered as the
export oriented industries, since the export shares. As far as the yarn
is concerned, this represents an important structural weakness of the
textile industry as we are unable to utilize domestically a larger share
of our yarn for production of higher value added textile products and
thus loose out to our competitors at the higher end of the world textile
market. Pakistan's share of world cotton production has increased
from 8.57% in 1986-87 to 9.2 % in 1996-1997.
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Ahmed Fine Textile
Mills Ltd.
Pakistan is the world's fifth leading cotton production nation
after China, USSR, USA and India. In terms of yield per hectare.
Pakistan has almost caught up with American but ranks 15th in the
world with it are per hectare production of 6.2 Kgs. Domestic
consumption of raw cotton has been rising annually almost 75% of
the production is locally consumed and raw cotton exports have
fluctuated widely. This year only 0.7 million tons of raw cotton are
planned to be exported.
COMPONENTS OF
TEXTILE INDUSTRY:
It is the first steps, in which the seeds are separated from the
cotton. The separated cotton is classified according to its quality and
standers. Finally it is tied up in to bales to bring them for next phase.
The machines that separate seeds can be used to prepare oil, feeds
etc.
SPINNING PROCESS:
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Ahmed Fine Textile
Mills Ltd.
When the cotton bales reached the spinning mill, these bales
are opened and cotton is torn in to small pieces. This cotton is finally
prepared as thread cones of different quality.
The different departments play an important role in the progress of
conversion such as blow room, carding section, simplex section, and
ring section and auto cone section. A detail report of these sections
will be provided in the later discussion.
WEAVING PROCESS
It is the process in which cloth is prepared from thread. The
machinery, which performs key functions in specified process, is
called loom. These looms are used to prepare the cloth.
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Ahmed Fine Textile
Mills Ltd.
Internship Report 7
Ahmed Fine Textile
Mills Ltd.
In ‘000’Kgs
Period PUNJAB SIND NWFP Balouch- TOTAL G%
istan
1988-89 419,803 305816 26777 15038 767434 12.03
1989-90 532,989 342522 27877 21994 925382 20.58
1990-91 626,978 376794 26405 25051 1055228 14.03
1991-92 734927 398344 28478 26521 1188270 12.61
1992-93 823961 354643 27418 28517 1234539 3.89
1993-94 1070422 347375 47363 33788 1498948 21.42
1994-95 1020640 315258 44969 32781 1413648 -5.69
1995-96 1100914 324152 47931 32247 1505244 6.48
1996-97 1095740 332547 65879 36689 1530855 1.70
1997-98 1100061 336965 68021 37648 1542695 0.77
STATUS
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Ahmed Fine Textile
Mills Ltd.
The Company is limited by shares incorporated in Pakistan on
December 13, 1989 under the Companies Ordinance, 1984 with an
Authorized Capital of 10000000 Ordinary Shares of Rs. 10/- each i.e.,
Rs. 100000000/-. The Issued, Subscribed and Paid up Capital of the
Company is 3800000 Ordinary Shares of Rs. 10/- each full paid in
cash i.e., Rs. 38000000/-
NATURE OF BUSINESS
OFFICES
Sub offices:
Located at 35-km, Multan- Bahawalpur road, near Adda Basira,
District Multan (weaving unit)
Located in Rahim yar khan (Spinning unit)
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Ahmed Fine Textile
Mills Ltd.
AUDITORS
M/S M. Yousuf Adil Saleem & Company, Chartered Accountants, a
member of HLB International, a world wide organization of
accounting firms and business advisers.
2nd Floor, 6-Commercial Plaza Opposite Civil Hospital Abdali Road,
Multan.
MANUFACTURING UNITS
The Company has three manufacturing units, one is spinning unit
and two are Weaving units.
Spinning Unit:
Spinning unit of Ahmed fine textile mills is in Rahim yar khan.
Installed capacity 17280 Spindles
Count range Ne 8/1- Ne 60/1, TC,
CVC Yarns, Mélange
yarns.
Brand name DOUBLE DELIGHT
# Of Shifts per day 03
# Of Working days 365
Installed Capacity after conversion
Into 20/s count kgs 5632450
Actual production of yarn after
Conversion into 20/s count kgs 7626423
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Ahmed Fine Textile
Mills Ltd.
Weaving Unit:
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Ahmed Fine Textile
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Ahmed fine textile mills has two weaving units.
Weaving unit of Ahmed fine textile mills is in District Multan.
Installed capacity 116 AIR JET LOOMS
Fabric range Twills, Satins/ Stripped Satins,
Percales Sheeting, Poplin, Canvas,
Stretch Twill/ Poplin, Double Pick
Fabrics, Ottomans, Bull Denim.
WARPING MACHINE
Make Benninger Swiss
Creel Size 1080
Head Stock 2400 mm
Speed ( m/min ) 600 to 1200
Year of Manufacture 2000
Yarn Type CT, PC, CVC, etc.
SIZING MACHINE
Make Benninger-Zell
Creel Size 32
Head Stock 4000 mm Computerized Sizing
Yarn Count 6 to 100
Yarn of Manufacture 2000
Size Boxes 2( with prewetting system)
Cylinders 14
AIR JET LOOMS TOYODA JAPAN
Make JAT-610 JAT-610 JAT-710
Looms 72 24 12
Width 190 cm 340 cm 340 cm
Speed 800 500 550
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No. of frames 07 07 10
Salvage leno or truck-in
Fabric Construction light & medium weight
AIR COMPRESSOR ZR 355 MAX PRESSURE 10 BAR
Air Dryer MD 1000
Make Atlas Copco Belgium
AIR CONDITIONING
Make Luwa Switzerland
No. of units 03
INSPECTION FRAMES
No. of frames 80’’ 134’’
2 04
ROLLING MACHINE
Machine
Max. roll size 400 kg. or 1 meter diameter
(Jumbo rolls)
GENERATORS
Diesel CATERPILLAR USA.
L-7052G
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Ahmed Fine Textile
Mills Ltd.
FINANCIAL YEAR
Financial Year of Company starts on Ist October and lasts till 30th
September.
BANKERS
Muslim Commercial Bank Limited.
Habib Bank Limited.
Askari Commercial Bank Limited.
Bank Al-Habib
Mezan Banks
United Bank Ltd.
Standard Chartered Bank
Bank Al-Falah
PRODUCTS
Major Products of the Ahmed fine textile mills are:
Spinning division
Cotton Carded/ Combed Yarn
Supima/ Giza Cotton Yarn
Plied Yarn Two for one Twisted
CVC, T/C Yarn
Core Spun Yarn with Lycra
100% Polyester Yarn
100% Rayon Yarn
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Ahmed Fine Textile
Mills Ltd.
RAW MATERIALS
Raw materials of productions are:
Ginned Cotton
Polyester
Yarn.
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Mills Ltd.
WORK FORCE
Company includes a lot of skilled and unskilled workers.
Almost there are 800 skilled and unskilled employees.
PORTION OF EXPORTS
The company exports much of the production:
90 % export
10 % local
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Ahmed Fine Textile
Mills Ltd.
MISSION
MISSIONSTATEMENT
STATEMENI
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Ahmed Fine Textile
Mills Ltd.
PURCHASE DEPARTMENT
The purchase department is divided into two categories, cotton
purchase department and store purchase department.
PURCHASE
DEPARTMENT
STORE PURCHASE
COTTON PURCHASE
DEPARTMENT
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Ahmed Fine Textile
Mills Ltd.
PURCHASE PROCESS:
The following steps are involved in the purchase of raw material i.e.
cotton.
Demand of purchase
from mill
Purchase Requisition
Sample Testing
Decision-making
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The store purchase department is responsible for the purchase of
items like
Spare parts of machinery, store and Packing material spares, electric
items, oil and lubricants, Stationery items, Building Material, and
General Store,
DOCUMENTS
Demand Requisition.
Invoice of Purchase
Delivery Order
In Gate Pass
PROCEDURE
The following is the procedure for local purchase department.
The purchase department receives the demand requisition from
store in charge at store at mills this is in fact an intention or
requirement of commodities at mill
The purchase demand requisition contains a full detail of
quality and quantity of commodities required. It also contains
price detail of goods purchased previously
The purchase department on the basis of indent does an inquiry
for rate from at least two suppliers from approved suppliers list.
After inquiry Purchase Manager discusses with Director for
approval of rate and other necessary requirement.
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Ahmed Fine Textile
Mills Ltd.
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Ahmed Fine Textile
Mills Ltd.
ADMINISTRATION DEPARTMENT
Labor office
Security Guard office
Gate office
Time office
The functions of each department are:
LABOR OFFICE
This office has been setup to deal with all the matters that are related
with labor. The head of the department is responsible to resolve all
the disputes, conflicts, misunderstanding and any other kind of
matter, which arise from time to time with the labor and the
immediate supervisor or with any regulations of the labor
department. Usually this department is required by the Govt. of
Pakistan.
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Ahmed Fine Textile
Mills Ltd.
Duties of labor officer are:
Inform about the legal requirement concerning the labor and
company affairs.
To satisfy himself regarding payment of bonus, gratuity, and
other benefits to labor and to keep their morale and
motivational level high.
He should keep his knowledge up to date regarding the rules
and regulations of the labor department.
SECURITY GUARD OFFICE
The main objective of this department is safe handling of the goods
from/to the mill premises. There are some more responsibilities of
the security guard officer.
Any outsider can’t come in the mill premises without the
permission of security guard.
Whenever some one want to enter in the mill that guard contact
with authority to grant permission to enter into the mill.
He can check each and every person before coming in or going
out of mill gate for security purpose.
Security guard officer is guardian of the every thing the Mill premises.
GATE OFFICE
This office has been made to keep the record of each and every
thing coming into and going out of the mill gate. For this purpose,
gate office clerk maintains two types of registers called:
Out ward going pass register
Inward going pass register
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Ahmed Fine Textile
Mills Ltd.
When thing come in to the mill i.e. raw material, stores supplies etc.
a document named as I.G.P is made in which information like date of
supplies, description, quantity of the material and any other remarks
are written.
In the case of out going a document is used for this purpose is known
as O.G.P. O.G.P is prepared for out going thing.
TIME OFFICE
Some key activities of time office are:
This office keeps and maintains the time record of all the
workers on time card and pay register for the final costing of the
workers salaries.
It keeps the record of the attendance which is used to calculate
the salary of the employee paid to him/her on monthly basis.
It keeps also the record of overtime, leaves. (# of days worked of
all the workers and then calculates their overtime on the basis
of the basic salary of each worker.)
It keeps the record of Gratuity, Bonus.
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Ahmed Fine Textile
Mills Ltd.
IMPORT DEPARTMENT
AFT has also an import department. The import department is
responsible to import those items, which are not available in
Pakistan. The structure of this department is as under:
Chief Executive
Director
Assistant
PROCEDURE
Senior Manager is responsible for import of machinery, equipment,
spare parts, raw material, etc.
• An indent for import of item after the approval of Chief Executive
is sent to import department.
• The Senior Manager Import selects a subcontractor from approved
suppliers list.
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Ahmed Fine Textile
Mills Ltd.
IMPORT DOCUMENTS
There are different documents are used when we are going to
purchase or import we required.
Performa invoice
Open bond manufacturing certificate (OBM)
Form I
Importer’s certificate
Bill of entry
Invoice
Air way bill
PERFORMANCE INVOICE
This invoice is made by the indenture the goods and their particulars,
the organization is demanding. It tells the importer about the price,
payment term and conditions. Performa invoice consist of:
Exporter’s name & address
Importer’s name & address
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Ahmed Fine Textile
Mills Ltd.
Description of items
Quantity
Unit price
Amount
Terms & conditions
Country of origin
Deliver date
Mode of payment
FORM I
Form I is an application for permission under the foreign exchange
regulations act 1947 to purchase foreign exchange for payment of
imports. In this form, the importer declares:
That mentioned payment is due and that he has not already
obtained exchange for payment for imports nor he has made
any other application for this purpose.
That amount of foreign exchange mentioned represents the
correct prevailing market price for the goods on the date of
contract in the exporting country.
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Ahmed Fine Textile
Mills Ltd.
IMPORTER’S CERTIFICATE
The importer’s certificate, a valid import license registered with the
State Bank of Pakistan covers the imports.
A part of this form I is completed by the authorized dealer who
certificate that the statements made by the applicants in the form are
to the best of its knowledge correct and it has seen documentary
evidence in support thereof.
The dealer also certifies that the remittance has been made in
accordance with method of payment as per existing exchange control
regulations.
BILL OF ENTRY
This bill of entry is just like shipping bill. This is used for the
clarification purpose. With the help of this document, import
department got the goods cleared from the customs. It carries all the
information about:
The importer
Letter of credit (LC)
Freight
Goods(their price, units, weight, package)
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Mills Ltd.
Shipment detail
Sales tax, income tax, custom & excise duty.
INVOICE
When exporter negotiate the documents, he sends invoice to import
department that specifies
Goods imported
Air freight & forwarding charges
Port of destination
Payments (in importing currency)
Type of packing
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Mills Ltd.
rate/charge
nature & quantity of goods
MARKETING MIX
Marketing mix is the set of marketing tools that the firm uses to get its marketing
objective in the target market.
PRODUCT
AFT is dealing in the textile area, the products, which the AFT is
manufacturing, is the yarn and the grey fabric. AFT is producing the
best quality yarn there and the different types. The construction of
the grey fabric differ due to the differ in the quality of the yarn. There
are counts.
AFT produces the yarn of different counts. From 1 count to 20 count
yarn& above, according to the specification of the customers.
AFT exports about 95% of its produce to the foreign markets. It
exports to the Europe, Asia& the other neighboring countries. Due to
the spinning unit, AFT has an advantage in the weaving; that they use
their own yarn in the manufacturing of the grey fabric also has the
different quality constructions. The combed & the carded yarn. The
combed is the yarn, which is more refined on compared to the carded.
The products are produced according to the specification of the
customers.
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Mills Ltd.
AFT also sells & purchases the products from the local market
to fulfill its orders.
These products are building the image the progress and
developments of the organization.
PRICE
PRICING OBJECTIVES
The obvious pricing objectives, of AFT.
Maximization of profit
To achieve the target return and targeted sales.
Maintain the market share.
PRICING METHOD
The pricing method AFT is adopting is profit based. The AFT policy
about pricing is that the profit should be reasonable. And also they
keep in mind the competitors because they are also providing the
products at the competitive rates.
Fixed cost
Variable cost
The total cost is calculated. While all the expenditure related to the
products production are added. The total expenditures are divided by
the production. Their per unit is obtained, also a margin is added.
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FIXED COST
Fixed cost in value, the cost related to the machinery.
Building cost.
Electricity change.
Salaries & wages
Insurance expenses
Plant cost.
VARIABLE COST
The profit margin depends upon the quality of the yarn and the grey
fabric. As the high quality yarn is used in the construction of the grey
cloth, then the price would be high. The price will be different to
attract the customer and in local market.
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Ahmed Fine Textile
Mills Ltd.
Shipping line freight and other foreign agent commission is added.
Also the charges related to the transportation and bank handling
expenditure is considered while calculating the price of the export
items.
PLACE / DISTRIBUTION
AFT exports about 95% of its produce.
Therefore the distribution channel of the AFT is as follows.
AFT TO CUSTOMER
AFT is also dealing directly with the customers. As in the local market
and the foreign, the buyers direct contact with the AFT. So the export
department fulfills their orders by the transformers. The transporter
help in delivering the products. The transporters are helping a lot in
progressing the textile industry. The comely delivery to the buyer is
the greatest service to the customer, timely delivery is important for
the success and development of the organization.
AFT has a direct contact with the shopping his and the port and
customer clearance agents. They clear the containers from the port.
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Ahmed Fine Textile
Mills Ltd.
INDIRECT CHANNEL
AFT to agent & to customer. In the export of textile products, the
agents are the backbone of textile industry. They receive the order on
behalf of the buyer, give to the seller. They receive their commission
from the buyer and the seller.
The agents also purchase the products; sell them directly to
other buyers. So in this trading they earn enough profit.
PROMOTION
AFT promotes its products, but to a limited extent.
AFT provides the company broachers to the buyers.
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Ahmed Fine Textile
Mills Ltd.
AFT provides the samples of the grey fabric. The yarn to the
customers.
AFT has a direct contact with the local and the foreign agents,
so they also promote the company products.
Visits to the customers.
AFT marketing manager also visits its customers.
Their high quality of the products on the fine count the Grey
cloth is also promoting the company and establishing image
and goodwill.
AFT provides the timely information to customers which help in
promoting.
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Ahmed Fine Textile
Mills Ltd.
ACCOUNTS DEPARTMENT
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Mills Ltd.
financial statements and computer application. If we consider a
company a cell then we can say that accounts department has role of
nucleus.
Without accounts department there is no possibility of doing business even sight
weakness’ on the part of accounts department can badly effect the performance of whole
organization.
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Mills Ltd.
Now trial balance becomes the source of profit and loss and balance
sheet.
This department also designs the accounting policies. All the work in
this department is being take place on accrual basis.
The department prepares trial balance at the end of every three
months and Profit and loss accounts and balance sheet are prepared
at the end of year. The financial year ends on september30 of each
year. The financial statements are presented to shareholders
Chief Accountant
Accountant
Accountant
Asst Accountant
Computer
Computer
Operator
Operator
Cashier
Cashier
Record
Record Keeper
Keeper
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Ahmed Fine Textile
Mills Ltd.
2. Salaries and Wages Section
3. General Accounting
STORE SECTION
Store section is mainly concerned with store accounting. This section
deals with many accounts heads that are concerned with stores. Such
as stores &spare A/C, oil and Lubricant, Packing material A/C,
General Store A/C, Building Material A/C and many others. The
major responsibilities of this department are
• To record the store purchases
• To record all store issues
• To prepare various reports relating to store i.e. material
consumption report, party wise purchase report
To keep a check on all stores by surprisingly checking their record
and physical existence of items stored. Because of the above
mentioned duties. This section has a key position in the company. No
payment is made to any body unless it is checked and verified by this
section.
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Ahmed Fine Textile
Mills Ltd.
Leave Procedure
There are three types of leaves.
Sick Leaves
Sick Leaves are eight in year
Casual Leaves
Casual Leaves are ten in each year
Annual or Earned Leaves
There are twelve earned leaves. Company’s rule doesn’t allow any
employee to do four-day leave without application. In case any
employee does so then he can’t avail annual leaves.
Attendance Allowance
Leave encashment is given to those employees who save their
holidays and don’t avail them. This is given according to their per day
salary multiply with number of days of holidays not availed.
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House Rent Allowance 10%of basic salary
Utility Allowance 10% of basic salary
Special Allowance 300
Income Tax
Income tax is deducted from salary of all those employees whose
annual salary is greater than Rs.150000.An entry is passed on
voucher while deducting income tax and this is paid to tax
department
Gratuity
Amount of gratuity is deducted from salary of employee with passage
of time and he gets a lump sum amount at retiring time
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Mills Ltd.
ACCOUNTING SYSTEM
Accounting System at here is centralized and on accrual basis. All
accounts are maintained in Multan head office. The process of
accounting system starts from the preparation of voucher. The
following are different types of vouchers prepared at AFT Mills:
• Journal Voucher
• Bank Voucher
• Payment Voucher
• Credit Voucher
DR ADVICE
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When issued by bank, it means bank has deducted some amount from
your account or when has been made through your account
CR ADVICE
When issued by bank to you, it means some amount has been added
in your account. It normally takes place when some foreign
remittances have been received by bank in your account. This is
usually sent by your customer in foreign country to which exports has
been made.
PAYMENT VOUCHER
This voucher is prepared at the time of making payments to any
party. Party name is debited with the amount to which payment has
been made. Payment vouchers are used for the payment up to
Rs.5000. Payments more than this are made through bank
CREDIT VOUCHER
As name of voucher represents, this voucher is prepared when some
amount is received from any party. In this case party name is credited
by the amount that has been received
IMPORTANT BOOKS
• Cash Book
• Bank Book
• Bought Day Book
• Sale Day Book
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CASH BOOK
In this book cash payment and cash receipt vouchers are recorded on
daily basis. The vouchers are numbered serial wise and cash-closing
balance is calculated on daily basis.
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 the statements of the banks
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Main ledger
Profit &Loss Ledger
Customer Ledger
Supplier Ledger
Staff Ledger
MAIN LEDGER
It is a control ledger, which maintain all heads of accounts from
which balance sheet is prepared. All assets and liabilities accounted,
profit & loss, customer, supplier and personal Ledger are maintained
in it. Posting of sub ledger is made in main ledger on closing of
month. From basic books like cashbook, bank book, bought daybook
and sale daybook. At the end of month trial balance is prepared to
check the accuracy of accounts maintained during the month by
observing the debit and credit balance as they are equal or not.
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• Manufacturing Expenses
• Administration Expenses
• Selling Expenses
• Financial Charges
• Miscellaneous Charges
MANUFACTURING EXPENSES
They are like purchase of cotton, wages and salaries, fuel and power,
insurance, repair and maintenance of plant, packing material and
depreciation.
ADMINISTRATION EXPENSES
These are traveling expenses, salaries, communication expenses like
fax, phone and telex, rent, electricity, entertainment, advertising,
vehicleup charges, depreciation, printing and stationary expenses
SELLING EXPENSES
These include export expenses, corporate freight, ocean freight,
trailer freight and local selling expenses
FINANCIAL CHARGES
They are like interest on long term loan, markup on short term
finances, exchange risk coverage fee, commission on bank
guarantees, letter of credit commission, excise duty on long term and
short term finances.
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MISCELLANEOUS CHARGES
Miscellaneous charges include auditors fee, legal and professional
charges, donations, fines and penalties.
CUSTOMER LEDGER
It is maintained by company in which all accounts are opened to
whom the company sells yarn. Posting in customer ledger is made
from cashbook, bankbook and daybook. The balances of customers
are worked out daily and the report of receivables is prepared daily
and submitted to the management.
SUPPLIER LEDGER
In supplier ledger the goods supplied by the parties is recorded.
Party’s account is credited and goods purchased are debited.
PERSONAL LEDGER
To record all transactions relating to the personal accounts of
employees of the company, this ledger is used. Advances and loans
made to the employees, and the monthly deductions from their
accounts of loans are recorded.
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System revision
Management of policies check
Maintenance of books of accounts
System check.
System revision
Discrepancies always come in any organization. So this is duty of
internal audit department to revise the system if there arises any type
of discrepancy.
System Check
The internal audit department checks whether the revised system is
being followed or not, if there is any type of deviation that is reported
to the top management.
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EXPORT DEPARTMENT
OBJECTIVES
• To increase the Export of the Grey Fabric and yarn.
• To maximize the company profit by increasing exports.
• Exploration of the new markets.
• Market research making the better information system
• Adopting the new technological a developmental changes in the
field of textile.
• To build the image a credibility of the organization.
• To earn foreign exchange for the progress of the economy of the
country.
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FUNCTIONS
Following are the main functions of the export department.
• Export department is responsible for the production planning and
the production follow up with the mill.
• Customer correspondence as well
• Export department also follow-up the local sale and purchase of
the yarn and the Grey fabric.
• The important function of the export department is to make
shipment schedule and the planning.
• Visiting to the existing and new customer.
• Providing timely information about the production of the products
to the customers, which is also providing a service to its customers
and promoting the company image.
• Improving the quality of the products with collaboration with the
buyer and the production department.
• Bank documents preparation and the follow-up.
• Preparing the custom documents
• Dealing with the agents and providing timely information to the
parties.
• B/L follow-up with the shipping lines.
• Export system updating is also the responsibility of department.
• Preparing the quality analysis report and sending them to higher
authorities.
• Maintaining the complete sale and purchase records
• Export department is helping in improving the quality and
betterment of the products and the company.
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EXPORT DOCUMENTATION
Export procedure is a very lengthy process. It involves a number of
documents required by the importer from the exporter. AFT export
department carefully handle all the steps involve in it. Because a
little bit of mistake can cause a great loss to the exporter and the
importer.
Indent
Sales contract
Letter of Credit
Custom documents
Packing list
Bill of lading
Bill of exchange
Certificate of origin
Inspection certificate
Form E
Form M
Shipping bill
INDENT
Indent is the first export document, which is, send by the agents to
export department. After the careful analysis of all the terms and
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conditions such as the quality description the selvedge, shipment
date, piece length, price per unit, the packing and payments terms.
It also contains the buyer name and the reference number of buyer
or agent.
SALES CONTRACT
The export department after the careful analysis of indent issues the
sales contract. As they have the products and in the sales contract
they confirm the terms and conditions of the indent, such as the
quality, packing, payment terms, commission, shipment date and the
price of the product. Issuing sales contract is the confirming the sale
of the products to the buyer on the specified price. If there is changing
made by the buyer or agent, so the later revised sales contract is
issued by the export department? In which they can revised any
thing, the shipment schedule, the price & the product specification.
Export department handle carefully the steps of that procedure. Also
the contract copies are sent to the agent, the buyer, the accounts and
the audit department of the AFT for their record purpose.
LETTER OF CREDIT
Letter of credit is very important documents in the whole export
procedure. Because without this the process could not be complete.
L/C is a written instruction issued by buyer’s bank, authorizing the
exports to draw in accordance with the terms and stimulate legal
forms that bill will be honored.
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In the L/C all the term and the conditions are given by the buyer.
What documents he needs. In the L/c there are important things
mentioned there.
The Buyer name is there in the L/C
The bank of the importer is also mentioned.
The importer name and address is also given.
L/C number is mentioned on the top or the L/C
Issuing date of the L/c, the expiry date of the L/C, the
amount of L/C, the quantity of the products.
The complete description of the products and the rate.
The terms, either CNF or CFR,
The shipment date is also mentioned.
The port is given there in L/C.
The shipping line is given, so the exporter only sent the
goods on that specific shipping line.
L/C terms are given, either it is 120 days, 90 days or sight
from B/L date
On the L/C the rate per unit and the shipment schedule is
give on what date the products would be shipped in what
quantity.
Trans shipment or the partial shipment allowed or not is
also there in the L/C
All the documents such as the invoices, the packing list, the certificate
of origin and other inspection certificate are also mentioned as
required by the importer.
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TYPES OF L/C
• Irrevocable or revocable
• Documentary or clean
• Un-confirmed or confirmed
• Sight
The exporter has to fulfill the terms mentioned in the L/C. Both the importer the
exporter are bound to fulfill their obligation mentioned his L/C
TRANSPORT DOCUMENTS
The transport documents are very important because it provide the
evidence that goods have been transported and it enables the
importer to receive the goods from the custom authorities. As the
order placed by the importer is ready on the due date, the export
department issues the dispatch order to the mill. That the following
quality should be dispatched on the containers specified on this L/C.
The goods are loaded on the specified containers and they are sent to
the Karachi port on the specified shipping line.
AFT mostly does its shipment through the shipping companies. The
shipping lines charge their freight and other charges are paid the
agents as well as for clearance of the goods from the port. The agents
handover the documents which involve packing list and invoices to
the shipping lines.
As the trailer number, the container number E form number, quality
and the quantity is completely mentioned on this invoices.
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By Rail Receipt Railway service
By Road Road way bill Transporters
By Air Air way bill Air lines
NEGOTIABLE DOCUMENTS
In the negotiable documents the title of the good is transferred form one
person to another when the existing holder produces the documents.
NON NEGOTIABLE
In the non-negotiable the title of the goods is non-transferable. In the
exporting of good the number of the parties one involved.
1) The firm or the company engaged in business of transporting
products, such as the track company, shipping company a airline.
2) The exporter, who is exporting the goods to the buyer.
3) The importer who is importing the goods from the seller.
BILL OF LADING
Bill of lading is one of the most important documents in the whole
export documents. Because without this the importer cannot receive
their goods from the destination port.
AFT first of all draft the bill of lading and that is sent to the shipping
line. Bill of lading also contains the specifications related to the
importer and the exporter. The name of the exporter, place, the
importer, the bank, the quantity is mentioned, the quality with all the
specifications required by that, the total value of the goods which are
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exported. The date of the bill of lading is mentioned. The shipping
line and vessel name is given on B/L.
B/L is a comprehensive document that is issued by the shipping line.
The date of shipment is also mentioned on that. Without this the
importer can’t clear the goods from the destination.
AFT export department also very quick in follow up of the B/L
because they have to transfer the information to the parties.
CERTIFICATE OF ORIGIN
Certificate of origin shows that the good which are being exported are
originate from a country form which importer is allowed. These are
required by the authorities in the importing countries. In order to
satisfy and support a claim for the import duty.
This certificate of origin may also be made by the consultants of the
importing country in the form of consoler invoice or legalize the
exporter’s commercial invoice. When explorer called for L/C, of is
with the other documents by reference to the invoice number, L/C
number and by quoting shipping marks and numbers in order to
identify the goods.
PACKING LIST
Packing list is a document, which involves all the complete list of the
goods packed in the particular shipment. It is very important.
Documents. It provides a convenience to the shipping and the
clearance authorities.
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2) It shows the weight also.
3) Each package is marked by a number.
4) It shows the contents of each package, what is nature, quality and
quantity of the package.
5) It provides a linkage with the other documents to reference to the
invoice number, date, letter of credit number, date and vessel
name.
FORM-E
Form E is a document issued by the exporter bank. Through Form-E
the SBP controls the overall exports of the country. The form-E
declares that the export information given on the form-E are correct
and will submit the duplicate and triplicate copy of this form to
authorized bank.
Form-E contains the following important information’s.
1) Description of the goods, the quality of the goods exported.
2) The quantity of the goods.
3) The Terms of the L/C.
4) Destination of the goods.
5) The consignee bank. The importer bank name through countries
the payment would be released.
6) The Invoice value of the goods in the exported.
7) The port form where the good are shipped.
8) The place from where good are cleared.
9) Date of the form E is also on this form.
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CERTIFICATE OF INSPECTION
Certificate of inspection is also a important document, it is in those
consignments where the importer wants to assure himself, about the
shipment of the correct goods, in terms of the quality, description
quantity and size. The documents should specifically identify to the
goods by having a reference to the marks and numbers of the package
and linkage to the other documents by reference to invoice number,
the letter of credit number, the vessel name and the shipping line.
BILL OF EXCHANGE
It is unconditional order in writing, addressed by a person to
another, signed by person giving it, requiring the person to when it is
addressed to pay on demand or at a fixed determinable future date.
When the L/C is opened the B/E must be strictly drawn according to
the terms and conditions of the creditor may be drown on the request
of the applicant or on the bank request through which the credit is
opened. B/E is also a important document of export.
SHIPPING BILL
The customer clearing agents issue the shipping bill. It contains the
complete information about the export bank the importer name, the
exporter name, the weight of the goods, (Net and gross weight),
number of packages, amount in US$, quality of the goods, the
container number, the exchange rate and rupee amount.
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FORM-M
It is also an important. It is used to pay the commission to the agents.
AFT receives this from the agents. On this the amount of the
commission is mentioned against invoices.
PRODUCTION DEPARTMENT
Ahmed fine textile limited has a spinning unit, which is situated at
District Rahim yar khan. This unit is equipped with highly modern
and automated machinery. Ahmed fine textile limited has also two
units of weaving. One is situated at Multan-Bahawalpur road, district
Multlan and second is under construction at Qadirpurrawn, District
Multan.
The properties of cotton fibers (a natural fiber) vary for all different
growth areas for different climate conditions and form year to year.
When cotton crop is collected from fields, team of professionals
survey the best cotton growth areas ( called station ). So, after
selecting the best station, the next step is considering the ginning
factories where cotton lint and seeds are separated. Seeds are used as
the raw material for oil industry and cotton lint in the spinning of
yarn. Raw cotton is tested at various parameters e.g. its staple length,
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micronaire, floating fibers %, trash %, color, yellowness and moisture
content etc.
Considering above parameters cotton is purchased for the whole year
consumption. Ginners send the cotton in lots (each contain 100 bales)
to spinning mills in the form of pressed bales having weight 165 – 170
Kgs each bale.
Yarn is produced of two types combed yarn (the excellent quality) and
carded yarn (good quality). To produce each type spinning process is
somewhat different as show below:
Spinning Process:
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Blow Room
Carding
Pre comber drawing
Unilap
Combers
Drawings
Simplex
Ring
Autocone
Conditioning
Blow room
Carding
Drawing
Simplex
Ring
Autocone
Conditioning
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About 80-100 people are deputed here for bales opening and
contamination sorting. Contamination may be coloured yarn pieces,
small cloth pieces, jute, feathers, hair pieces and polypropylenes
pieces etc. Thus blending and mixing takes place once again as the
small tufts are mixed together. This minimizes the variation from bale
to bale and from station to station and even blend is obtained. Now
cotton remain here for twenty four hours to reduce moisture contents
7-8 %.
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transferred from one to other machine, cotton becomes cleaner and
finer. Dropping (waste) is separated through here through a pipeline.
Carding
Cotton from blow room machines is transferred via air to the next
department called carding. This is a machine which has big cylinders
with very sharp wires. These cylinders are so placed in the machines
that at various points of the machines, cotton experiences and
extensive opening and cleaning. Here small entanglements of cotton
are also extracted along with finer trash particulars e.g. small leaf and
seed particulars. Fibers having length less than 0.5 inch are extracted.
Pre-Comber Drawing
The cans obtained from the carding department are set behind
machines called Pre-combing draw frames. Six cans are placed and
sliver form each can is passed through rollers. These rollers have
speed difference such that six slivers are stretched six times and a
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single end is obtained. In this way slivers are blended and mixed
together to minimize variation. The obtained silver is again laid down
in cans.
Unilap
Slivers received from pre-comber draw frames are once again
stretched here. Twenty six slivers cans are sent on a machines called
unilap. Thus slivers from twenty six cans are mixed and blended
together to minimize variation.
It results in the shape of Lap. It is a sheet wound on al plastic tube
(spool).
Combers
Laps are fed to the next process called combing. Here 15-18 % short
fibers are extracted which are called comber noil (a by product used
for surgical dressing ). The result of this process is also a Sliver of very
fine, Clean and lustrous bearing the fibers of maximum length.
Drawing
The sliver obtained from combers are again fed to another draw
frame passage called post combing process. Sometimes this sliver is
passed once through draw frames and sometimes twice. In the framer
case it is called single passage and the later is called double passage.
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Simplex
Here the objectives are
Drafting
Twisting
Winding (Roving)
The drawn cans are subjected to a next process called simplex. One
hundred and twenty cans are placed at the back of each simplex
machine. Each can against experiences a stretch of six to seven times
and assumes a shape of finer than sliver. This fine rope is twisted and
wound on to a plastic bobbin. This rope is called roving.
Up to here process is called back process.
Ring
It is in fact yarn production department as yarn count is controlled
here. Each roving bobbin contains about 2000 to 3000 yards of
roving. This roving is once again subjected to a stretching process. As
the roving is unwounded from the roving bobbin, it is passed through
three pairs of rollers, Their speed are so adjusted that the speed of
no.3 in about 22 times more than that no.1. In this way if one yard of
roving is subjected to three rollers; it will be lengthened to twenty two
yards(particularly to produce NE 20/1 yarn count).Thus at the time of
having third pair of roller, the roving has been converted into yarn
from of very fragile one.
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dint of a traveler whose life is about seven days only. This small
metallic part not only imparts twist to the yarn but also winds it on
the ring bobbin. The ring is mounted on the spindle which revolves
about 16000 to 17000 per minutes. RPM (revolution per minute) as
controlled through a meter on the machine and is set as per
requirement. Each ring bobbin contains 55 to 60 grams of yarn.
Auto Cone
Three jobs are done here
Faults removal:
This yarn has some faults e.g. some thin and thick places in yarn.
Such faults are cut and joined again automatically.
During winding process waxing is done only with the hosiery yarn to
reduce its friction with the needles of the knitting machine.
Winding yarn on paper cone
Here now we have been equipped with a latest technology called
PERLA and SIRO, which controls hairiness and contamination
respectively.
Conditioning
After a paper decided length is wound on a paper cone, a certain
weight e. g. 4.166 lbs is obtained. After the weighment of every cone it
is inspected through Ultra Violet device. Then they are stacked in
packing department for conditioning. In this way strength of yarn is
improved. Also the loss due to extraction of waste in blow room,
carding and comber is compensated in the form of moisture. The
cones are left here for about twenty-four hours and then packed in
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corrugated cartons. Marks are printed on cartons as per customer’s
requirements and now they are ready for dispatch.
Count
Lea
(1.5 meter) X (80 round) = 120 yard
Hank
(120yards) X (7) = 840
On the scale put on one side on pound and on the other side put the
hanks. Then count the hanks that will be our count. Suppose that
there are 30 hank equal to one pound our cont will be NE 30/1.
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Weaving process
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During the production process first of all the reed per dent is
calculated.
a. REED
YARN REQUIREMENTS
After the adjustment of the reed the yarn
requirements is calculated. The requirements of yarn are based on per
day production of that quality and also depend on the weight of the
yarn.
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One truck contains =130 bags (Avg.)
Common types of yarn: 7/1, 8/1, 10/1, 12/1, 16/1, and 20/1& 24/1
Unless the mill got an advice from the head of they does not
manufacture of the fabric.
WARPING.
Warping is the process of withdrawal of yarn from Cones
and transfers it to big beams. In this process the yarn from little is
transferred to required numbers of beams. The required number of
ends/inch is calculated and feeded in the machine from which it is
converted into required number of beams.
SIZING.
There are two main objectives of sizing of yarn.
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1- is to strengthen the fibers. In this process the warped beams are
passed through a chemical process so that yarn could bear the
intensity of the weaving process and they do not break .
2- is to achieve the required number of ends on one single beam.
KNOTTING
In this process if the quality of one beam remains the same
and the quality of one beam ends then the other beam of the same
quality is joint with the threads of first beam, this is known as
knotting process. However this process is not applicable if of the
weave is changed.
DRAWING IN
In this process if the quality applied on one beam is to be changed
then the process employed for the changing of one quality in to
another is known as drawing in. it is also known as changing of
article.
COMPRESSOR.
In mills there are big compressors of air, which extract
fresh air. These compressors store this fresh air and after going some
process, passed this air to the air jet looms.
WEAVING
When the yarn has gone through all the above processes,
now it is ready to pass through the weaving process. In this process
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the yarn is converted in to fabric. All the above mentioned process are
subsidiary of the weaving process,
INSPECTION
When the required fabric is produced it is ready for
grading, mending and inspection. First of all the produced fabric is
passed through grading and mending machines in which if there is
any fault in the produced fabric it is removed on the spot. After going
through the grading and mending process the fabric is re-inspected
again so that there is no chance of error.
PACKING
There are three main ways in which the fabric is packed.
1: - rolls
2: - bales
3: - pallets
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PRODUCTION
The revolution per minute of Sulzer machine varies from 280-305
In Diamond fabric the Sulzer machines can produce width up-till 153
inch; however practically above machine can produced width-up till
140 inch.
This 153-inch can be divided into 3 widths maximum and one width
minimum.
PRODUCTION CALCULATION.
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[PRMx 60(R.P.H) x 24 (# of hours in a day) x # of width] x
Efficiency
No. Of picks per inch x 36
In case of Air jet looms the revolutions per minutes varies from 400
to 775.
BATCHERS
They are used when we want to warp more of piece length into
yards/meters i.e. 2000 OR above. Whereas in normal looms the piece
of length varies from 200 to 300 meters.
LABORATORY
In laboratory the following tests of fabric are done.
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SWOT ANALYSIS
STRENGTHS
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WEAKNESSES
OPPORTUNITIES
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THREATS
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textile.
The AFT will face tough competition in domestic and
international markets.
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