Chapter 1:

 History and background

 Company profile
 Product and services
 SWOT analysis
 Vision mission & culture
 Organizational and departmental structure
 Description of various departments
 Core values/ Ethics
 Compensation and benefits

1
History and background:
Azgard nine limited (ANL) is regarded as one of the leading manufacturing and exporters of
specialized yarn, denim and denim garments worldwide. ANL group was started as a family
business over four generations ago. The SHAIKH FAMILY, now its four generation, is one of the
oldest business families in the subcontinent with experience in many different sectors and
having a proven track record of successful leadership in four continents. The family began its
first operation in 1886 in Shamkot, in the Asian sub-continent.
Although, now, a public limited company the family still remains behind the company in every
way, supporting and nurturing its growth into the future and beyond. ANL incorporated on
January 20, 1993 as public limited company
The current specialization yarn operation was set up in 1972 with the open-end spinning and
denim weaving operation following in 1995. The final frontier was the garments operation,
which came into being in 1997.
The concept behind the group’s textile ambitions was to be a vertical apparel solution provider
based in a country that would be able to maintain its competitive advantage in this field for the
years to come. Pakistan is the fourth largest denim producer in the world with an annual
production of 200 million meters. This has now been achieved and AZGARD 9 is able to offer
these services as a single source supplier for all denim and specialized customers.
The future is squeezing the brand customers toward a sourcing solution that stems from as
small a global map as will follow we believe it is feasible, in order to not be “spread too thin”
to consolidate a position in as few regions as possible in the quest for practical and economical
global sourcing – AZGARD NINE LIMITED is the vehicle which can accommodate and achieve this
position, therefore realizing the vision that was incepted so many years ago by the guardians of
the AZGARD group bringing the resultant advantages to you- the customers.
ANL operates a vertically integrated industrial unit comprising of Spinning, Weaving, Dyeing,
Finishing, Computer Aided designing (“CAD”), Computer Aided Manufacturing (“CAM”),
Stitching, Laundry and Power Generation (gas generation). This allows ANL to control the
production processes from fiber to retail ready products. Consequently, Azgard9 can offer a
“global best buy” value proposition in the denim and jeans sector delivered with amongst the

2
shortest and lead times in the industry. Azgard9 currently supplies products to many of the
world’s top retail chains including Mango, Dr. Denim, Desenhour, Blend, Tom Taylor, etc.
The share is trading at Karachi stock exchange (KSE) @ around Rs. 25/share of RS 10/share.
Now independently led & managed by Mr. Ahmad H Sheikh, 43 + graduate from Brown
University (USA).

Azgard9 Means, Origin & Inception:

In the ancient legend “AZGARD” was one of none worlds in Norse Mythology- it was protected
by “Heimdall” the son of nine different Mothers each attributing him with a particular skill and
power – and thus He would protect Azgard from the powers that be.
The significance of nine for the members of Azgard:
The significance of Nine for our company is not just based on this Mythology but also
connected with the auspicious nature of this number Throughout many different elements in
and out of the world today that Be an auspicious and important number in Indian, Chinese,
Japanese and Greek cultures for various different reasons.
In Chinese culture the number Nine represents ‘Change’ and ‘Transformation’, as in the case
with Azgard Nine which is changing and Transforming itself into an entity with new goals,
aspirations and targets. Nine in much of ancient Greek methodology also has represented
gestation and fulfillment of creation as it does for company at Azgard Nine. The “fulfillment of
creation” for company being the forming of this global entity by nine members on the ninth day
of February sowing the seeds for an auspicious and rewarding future

3
 Vision statement:

“Our vision is to become major global fashion Apparel

Company”

Mission statement:

“To retain a leadership position as the largest value added

denim Products Company in Pakistan”

Culture

“The high speed passionate pursuit of progress through

teamwork”; Azgard believe in team work and all the
departments follow the hierarchy levels of reporting strictly”

4
 Company Profile
Board of Directors

 Mr. Nasir Ali Khan Bhatti

Chairman

 Mr. Ahmed H. Shaikh

Chief Executive

 Mr. Aehsun M.H. Shaikh

 Mr. Irfan Nazir Ahmed
 Mr. Imtiaz Ali Bhatti
 Mr. Usman Rasheed
 Mr. Naseer Miyan

AUDITORS

 KPMG Taseer Hadi & Co.

 Chartered Accountants

COMPANY SECRETARY

 Mr. Muhammad Ijaz Haider

CHIEF FINANCIAL OFFICER

 Mr. Zahid Rafiq, FCA

5
AUDIT COMMITTEE

 Mr. Nasir Ali Khan Bhatti Chairman

 Mr. Aehsun M.H. Shaikh
 Mr. Naseer Miyan

HR & REMUNERATION COMMITTEE

 Mr. Irfan Nazir Ahmed Chariman

 Mr. Ahmed H. Shaikh
 Mr. Aehsun M.H. Shaikh

LEGAL ADVISOR

 Hamid Law Associates

BANKERS

 JS Bank Limited
 MCB Bank Limited
 Citibank N.A
 Faysal Bank Limited
 Habib Bank Limited
 HSBC Bank (Middle East) Limited
 United Bank Limited
 Standard Chartered Bank (Pakistan) Limited
 NIB Bank Limited
 National Bank Limited
 Allied Bank Limited
 KASB Bank Limited

6
  Silk Bank Limited
 Summit Bank Limited
 Al Baraka Bank Pakistan Limited

REGISTERED OFFICE

 Ismail Aiwan-e-Science Off Shahrah-e-Roomi Lahore, 54600

 Ph: +92 (0)42 111-786-645
 Fax: +92 (0)42 3576-1791
 Site: www.azgard9.com

PROJECT LOCATIONS
Textile & Apparel
Unit I
2.5 KM off Manga, Raiwind Road, District Kasur.
Ph: +92 (0)42 5384081
Fax: +92 (0)42 5384093

Unit II
Alipur Road, Muzaffaragarh.
Ph: +92 (0)661 422503, 422651
Fax: +92 (0)661 422652

Unit III
20 KM off Ferozepur Road, 6 KM Badian Road on Ruhi Nala,
Der Khurd, Lahore.
Ph: +92 (0)42 38460333, 3848886

7
 Top five suppliers :

No. Name of the company Location Type of supply

Spinning
1 Younas Brother Cotton Ginners Local Cotton
2 Ali Hussain Cotton Factory Local Cotton
3 Hassan Traders Local Cotton
4 Maqbool Cotton Ginners Local Cotton
5 Madina Cotton Factory Local Cotton

Denim
1 Interloop Local Yarn
2 Nishat Chunian Local Yarn
3 Sapphire Textiles Local Yarn
4 Monnowal Textiles Local Yarn
5 Fazal Cloth Local Yarn

Garments
1 Intercompany Weaving Unit Azgard 9 Fabric Fabric
2 Majeed Fabrics (Pvt) Ltd Fabric Fabric
3 Artistic Denim Mills Ltd Fabric Fabric
4 Kassim Textiles (Pvt) Ltd Fabric Fabric
5 Garmon S.A. Chemical Fabric

Table 1.1

8
 Top five buyers :
Name of the company Location Type of product

Spinning
1 Style Textile (Pvt.) Ltd. Lahore Local Yarn
2 Shahkam Industries (Pvt.) Ltd. Lahore Local Yarn
3 INTERLOOP LIMITED, FAISALABAD Local Yarn
4 Klash (Pvt.) Ltd. Faisalabad Local Yarn
5 Masood Textile Mills, Faisalabad Local Yarn

Denim
1 Denimach Ltd. Foreign Fabric
2 Intercompany Garment Unit Azgard 9 Local Fabric
3 Refat Garments Foreign Fabric
4 Armana Apparelz Foreign Fabric
5 Montebello SRL Foreign Fabric

Garments
1 Hennes & Mauritz Foreign Garments
2 TOM TAILOR GMBH Foreign Garments
3 Miss Sixty Spa Foreign Garments
4 Next Foreign Garments
5 Debenhams Foreign Garments
Table 2.2

9
 Products of Azgard9:
Yarns Division
The department of specialized yarn started its production in 1972 and they are yearly producing
67 million/ LBS per year and the department of spinning division started its production in 1995,
its produce 400 bags per day.
The company focus is on producing fashion oriented yarns developed in close cooperation with
its customers and its raw material suppliers so that it can provide products, which are already in
demand in the market place.
The range includes both Greige cotton and dyed cotton yarns, blended yarns and pure synthetic
yarns it also offer organic cotton yarns for those customers who demand it. Company is cotton
ASA certified and can provide certificates upon request our open-end yarns are used primarily
in the denim sector. They lend themselves perfectly for these applications and have achieved a
very high degree of brand loyalty in the markers in which they are sold.

ANL is very well known for producing a wide range of slub and uneven yarns and is well
recognized as the ‘market innovator’ for these products. ANL’s sales force is equipped with
mobile technology and provides real-time support to quickly design and simulate fabrics, and
then make the yarns to completely satisfy customer needs.

Figure 3.1

10
Spinning Process

Plucker

Streamer

Separator

Sensor

Carding

Labortary

Flow Chart 4.1

Denim Division
The department of denim division started its production in 1995. In addition, they are yearly
produce 14.4 million meters of fabric.
ANL is renowned for their denim development capabilities and can therefore offer product lines
that are unmatched in quality and price in Asia. The denim product range offers a wide variety
of aspects from classic vintage offerings to contemporary aspects, which are creations in their
own right. The range covers the complete spectrum of colors using various different castes to
achieve the desired depth and subtlety that is needed to add the necessary complexity that sets
the top end of denim fabrics apart from cheaper imitations.
ANL is also known for its offerings of special finishes such as ammonia-finished denims, various
types of coatings and denims employing the latest performance yarn compositions and
materials.

11
 Figure 5.2

Denim Fabric Process Flow Chart

InPut

Spinning

Ball Warping

Dying

ReBeaning

Weaving

Fininsh Fabric

Flow Chart 6.2

12
 Garments Division
The Garments Division offers a wide range of well-coordinated concepts in fashion and semi-
fashion jeans, ladies, gents and children wear feature exclusive fabrics, stylish cuts and trendy
designs. A professional team of designers creates designs keeping in view the global fashion
trends.
Being supplied to leading brands around the world for a number of years, these products from
ANL are highly reputed and widely respected for the quality of fabric, variety of designs and
their superior finish.

Figure 7.3

Garments process:

CAD

Cutting

Stiching

Washing

Finishing

Flow Chart 8.3

13
 SWOT Analysis:

“The SWOT analysis provides information that is helpful in matching the

firm's resources and capabilities to the competitive environment in
which it operates. As such, it is instrumental in strategy formulation and
selection. The following diagram shows how a SWOT analysis fits into
an environmental scan.”

Figure 9.4

Opportunities
 Denim products are demanded
throughout the year.
 Denim is a product, which use
internationally.
 Growth oriented business
 The people of every age group demand
denim product.
 Overall growth of business is increasing
worldwide.
Threats
 Pledge lines are not enough for
purchasing raw material, which is the
problem of whole textile sector.
 Raw material (cotton) is the seasonal
commodity. Therefore, company cash
reserved for the whole season.
 Economic condition of country
 Bad market and security conditions
 Inflationary pressure and
unprecedented energy crisis in country

14
 Strength Weakness
 The shortest lead-time to supply for  We have to fulfill our customer
any denim product manufactured in demand even on high cost.
Asia.
 Sales representatives are situated at  Payable loan on ANL is almost 13 to 14
convenient locales across the globe billion, which is not viable.
and speak customer’s language
 Italian technology partners the  Optimum level is not easy to achieve
industry leaders drive ANL technology because raw material is not enough so
and techniques whilst imparting the fixed cost of production remains
latest knowledge and know how to higher.
ANL manufacturing methodology.
 Quick replenishment of product to the  Underutilization of production
European markets from company capacities
warehouse facility in Istanbul, turkey.
 Customer can purchase huge quantity  Workers leave the organization after
of product. working short time
 Azgad9 is good client based as Diesel
Company and have high-end
customers.
 Own gas and electricity generation for
production

15
Organizational Structure
Department wise

IT & ERP

Audit &
Accounts
Compliance

CEO
HR Trade

Finance Purchase

Figure 10.5

16
 Organizational Structure
Division wise:

Business units

Spining Denim (Fabric) Garments

SPU1 SPU 2
Weaving Unit
(Open Ended) (Ring Spin)

Figure 11.6

17
 Description of departments:

Marketing Department:
The marketing department works separately for each of the three divisions under different
marketing heads for each division i.e. yarn, fabric and garments. But the basic procedure is
almost the same for all of them.

Spinning:

Yarn is sold locally and exported as well. First of all customers send their inquiries along with
which they may also send the sample in case of knitwear products and provide other
specifications about the product. The sample is analyzed and after the costing procedure a
quotation is sent to the customer telling if his specifications can be met or not, If the customer.
Feels satisfied then negotiation starts between the seller and the customer in which the price,
delivery date, mode of payment, payment terms and other such issues are settled. Finally, a
sales contract is signed between the two parties. On the other hand, an LC is opened. Orders
are prioritized based on their delivery dates and availability of input resources. Then production
starts.
When the production is complete, a dispatch order is issued to the dispatch department. When
the shipment leaves the mill premises, an outdoor gate pass is issued and an invoice is also
issued to the accounts receivables department. When the customer has verified the receiving
of shipment, post shipment documents are received and demand for payment is ‘made.

18
 Finance Department:

Assistant manager finance

(INSURANCE AND FINANE )
Head of Finance

Assistant manager finance

(2)

ASSISTANCE MANAGER
HOT OPERATIONS MANAGER
FINANCE (3)

OPERATION FINANCE FINANCE MANAGER

MANAGER EXPORT
Assistant manager finance
FINANCE (ERF)

Figure 12.7

19
Finance department is most important department of azgard9. This department arranges funds
to run the activities of whole company. Treasury team of finance department has three
members and one head. They arrange funds from using different mode of financing. They
check that how to collect funds to run the operation of company. How to collect short term and
long term loans. While operation finance team tells them that, who much fund is needed to run
the operations of company.
Finance department has two divisions

1. Corporate finance
2. Operational finance

Operational finance:
Division of operational finance is responsible for arranging the cash flows on daily basis.
It also arranges cash requirements for day-to-day basis. Main activities are done here are:

 Maintain bank position on daily basis

 Projected cash flows on weekly basis
 Maintain pledge lines
 Interdivision sales and purchase
 Export Discounting
 Foreign Sale(LC is necessary for foreign sale)
 Check inflows from sales
 Arrangement of salaries of employees
 Discounting of all bills
 Activities between banks and company

Operations for each division (spinning, denim, garments) deal separately.

20
Corporate finance:
Corporate finance arranges funds for the planned expansion of the company by borrowing
and equity funding. Two types of borrowing short-term loans and longs term loans are used. To
arrange equity is difficult process so mostly finance department do borrowing from banks or
other institutes. Records of all mark ups paid and to be paid are maintained here. Azgard9 uses
several lines of loans from different banks for the lending purpose. Main tasks at corporate
finance division are:

 Do Financial Charges calculation division wise of all the short-term loans and data
reconciliation with banks on quarterly and per annum basis.
 Short term financing and long term financing
 Completing bank documentation and fulfilling other requirements of banks.
 Liaison with banks in dealing with day-to-day issues
 Matters related to the arrangement of new financing.
 Arrangement and management of bank guarantees for SNGPL and excise and taxation
 Arrangement, evaluation and management of the lease financing for the company
 Matters related to termination and maturity of leases.
 Performance of various tasks for internal and external audit

Internal audit and compliance Department:

Internal audit and compliance department is responsible to ensure that everything in the
company is doing properly and in compliance with the SOP’s. It also ensures that every act,
which is performing, by any employee is according to the rules and regulation. Auditors monitor
the daily operation of every department and documents are audited by the oracle system. The
board of directors constituted a fully functional Audit committee comprising of three members
whom two are executive directors and one executive director. The teams of reference of

21
committee, inter alia, consist of ensuring transparent internal audits, accounting and control
system reporting structure auditors as well as determining appropriate measures to safeguard
the Company’s assets.

Three types of audit are conducted in azgard9:

1. Pre audit
2. Post audit
3. Monthly review

1. Pre audit
Check the entries before posting: e.g. check compliance of entries of purchases, sales
etc. before entering them into system.
2. Post audit
After posting, check compliance with SOP’s. For example, check ledger, trial balance
and journal.

3. Monthly review (documents)

Do system auditing during its development. As to check that costs of development is

fair or not

22
 Purchase department:
This department also called supply chain department and only deals with stores & spares.
This department divided in four sections, which are:

1. MRO(maintenance and repairing operation)

2. Fuels and chemicals
3. General items
4. packing items

Purchase department is work for garments and spinning units only. This department does
both local and import purchases. 99% purchase of azgard9 is on credit.

GM Purchase

Manager
Purchase

Deputy
Manager
Purchase

Assisstant
Manager
Purchase

Purchase
Ofiicer

Purchase
Assisstant

Driver

Figure 13.6

23
 Trade department:
Trade department is responsible for export and import.
Exports:
All the dealings form the customers are done by the marketing department. Export
department is responsible for the shipment once it has been dispatch from site. All necessary
documentation related to exports is done here. Export department also responsible for logistics
dealings

Trade head

Manager
Export

Documents Other
logistics
Handling Handling

By Road LC Bases Sales Tax

NON LC
By Air Rebate
Bases

By Sea RND Rebate

Documents
Issuing
Authorities

Figure 14.8

Imports:
Azgard9 import different things to manufacture their final product. Imports department
do all documentation, which is necessary for the import. Mostly import is done by opening the
LC. Names of some product which are imported are following:

24
  Raw material
 Machinery
 Yarn
 Cotton
 Fabric
 Buttons
 Chemicals
 Zippers

We import things according to requirement.

Now days we import mostly from following:

 China
 Hong Kong
 Italy
 European countries

Trade Head

Manager Imports

Import L/Cs Local L/Cs I-BOND CLEARANCE

L/Cs Process L/Cs Process

shipment clearance shiping documents

Figure 15.9

25
 IT and ERP department:
IT & ERP is important department of azgard9. Both IT and ERP works under the same head.
IT is related to hardware, software, networking and configurations while ERP deals with EBS
and oracle in house development. Initiatives on IT during the year have been taken fruitful as
core ERP modules have been installed on all the three divisions and further amplification of
controls through full implementation of production modules in ERP is being expecting in future.

IT:
IT department do all implementations related to hardware, software, networking and its
configurations and resolve the issues related to them. This department gives services of file
sharing, domain login, E-mail, antiviruses etc. and maintain client server relationship.

Head of Business Application

IT Head

IT Manager
IT Manager

SSO System SSO System

Assisstant Assisstant
Support Support
Manager Manager
Officer Officer

Figure 16.10

ERP:
ERP assign authority designation wise. They follow SDLC to develop oracle. Logs of all
transaction on ERP system is maintained for audit purpose. ERP system is best because
applications and modules in the ERP system are integrated. There are two divisions in ERP:

26
 1. In house oracle development
2. EBS (E business suite)

In house oracle development:

A team of programmers works for the oracle in house development in azgard9. They use
oracle developer tool, 6i for desktop application and 10G for web base application.
EBS:
Azgard9 purchased developed oracle system. It is use for the financial calculation and
bookkeeping. Some employees are responsible for its configuration and time to time changes
according to the need and user’s demands.

Manager ERP

ERP Programmer (3)

Head of Business Opeator

Application

Manager EBS
EBS
DBA

Figure 17.11

HUMAN RESOURCE Department

This function caters to all the essential aspects of managing the most important asset of any
business its human capital.
Human Resources are the custodian of company HR policies and are there to facilitate
compliance with them. Another important aspect of this function is to ensure that the
human element of work life does not get lost in the corporate maze and the employees live
positively, maximize their potential and perform to the best of their abilities.

27
 HSE Management system
To achieve Goals, Vision & Strategic Objectives, the Company is implementing an HSE
Management System, a structured and systematic approach that ensures Hazards Identification
& Risk Assessment of their critical operations & industrial processes. Its focus is on compliance
with both local laws and global customer requirements. At Azgard9, people are at the heart of
all activities. They strive to prevent injury and occupational illness and ensure the presence of a
free and motivating work environment. The Company has initiated a number of projects and
programs in the following areas of Health, Safety & Environment.

Health

 Minimum Health Management Standards

 Health Risk Assessment
 Health Surveillance Program (In house Audio & Spirometry Procedures)
 Medical Emergency Response & Plan
 First Aid Basic & Advanced CPR Training
 In house Health Facilities
 Health Screening Programs
 Fitness to Work Protocols

Safety

 Firefighting equipment & hydrant system

 Hazards Identification & Risk Assessment
 Personal Protective Equipment Program
 Road Transport Safety Program
 Permit to Work Systems
 Change Management.

28
Environment

 ISO 14001 Certification

 Effluent Treatment Plants
 Energy Conservation Program
 Solid & Biological Waste Management, Program.
 Spill Control program.

Figure 18.13

29
 Compensations and Benefits
Educational facilities

Azgard Nine is committed to a quality education for its employees and its communities.
The group has established and fully funds and manages several educational institutions in the
community including Higher Secondary School for girls, Girls High School, Boys High School,
Model High School and the Educators school. Over 2,800 students are enrolled at these schools
managed by over 100 professional teaching and support staff. This program has a profound
impact on the well-being of our communities.

Community health center

Azgard Nine is committed to the health and well-being of its communities and
employees. It operates a hospital at its Daudkhel facility equipped with an operation theater,
labor and gynecological center and an emergency unit.
PAFL has recently upgraded the health facility at Daudkhel, which provides subsidized
medical facilities to employees and the community. At an annual cost of over Rs. 14 million, the
hospital has 6 beds and provides minor surgery, labour room facilities, radiology and ECG
services, and an outpatient ward. It is staffed with 2 permanent doctors and other support and
technical staff round the clock.

Tree plantation drive

Realizing the critical need for a sustainable green environment, Azgard9 continues to
plant trees in the neighboring communities. So far, it has planted over 1,000 fruit trees and
plans to accelerate the effort.

30
Scholarships for students
Children of employees and local community residents are eligible for need-based
scholarships, which are regularly granted by Azgard9. Azgard9 sponsors currently 11 students
for their secondary and professional education.

Recreational facilities
Recognizing that a healthy body is a first prerequisite to a healthy mind, extensive sports
and recreational facilities have been made available to the community.

Fair price shop

Through its collective purchasing power, the group arranges discounted groceries for its
employees and their families and makes them available at subsidized rates through its fair price
shop.

Core Values
1) Respect For All
2) Integrity
3) Hard Work
4) Ethics

1. Respect for All

 Does not discriminate on the basis of race, religion or ethnic background
 Respect for Women
 Strongly prohibit all forms of harassments. For example racial, sexual or any
kind
 Attract, retain and develop outstanding people

2. Integrity

31
  Honesty to self, colleagues and Azgard9
3. Hard Work
 Company mission can be only achieved by hard work
 Honesty and hard work is appreciated and rewarded such as:
o Incentives upon achievement of target
o Performance based incentives and promotions

4. Ethics
 Professional behavior shall be entertained. E.g. gifts and favors will not be
accepted
 Personal beliefs of employee will be respected
 Responsibility and accountability
 Changes in Policies/Procedures shall be informed beforehand to the concerned
individuals
 Incentives upon achievement of target
 Performance based incentives and promotions

32
Chapter 2:

 Detail description of activities on weekly basis

 Manager associated with; their management style, strain and stress, conflict and
appreciation
 Application of knowledge or skills learned at IBIT
 New thing learned

33
First week:
I start my internship from finance department where I spent two weeks. I met
assistant manager finance, export manager, assistant manager insurance and operation
manager of GBU, SPU and DBU. They explain the process of working and explain all
working related documents. The things I learned there are:

Short-term financing:
Short-term financing is used for short-term projects, as to meet the requirements of
working capital. Results of short-term projects are also short term.
Azgard9 uses several lines of several banks for short-term financing named:

1. ERF-1 (Export Refinance)

2. ERF-2
3. FAPC
4. FE-25
5. LC

ERF:
Export refinance is the short-term loan for the export companies to increase the export of
country. When we have done a sale contract and have insufficient funds to prepare the
ordered products, we take ERF from state banks. Process should be:
Azgard9 commercial bank SBP
Documentation of sales contract presented to bank, which guaranteed that this loans is
used for the export purpose only.
Terms & conditions:
MARK UP= SBP RATE + SPREAD
SBP rate changes time-to-time but spread remains unchanged (1%) in case of ERF-1 and
ERF-2.
Difference between ERF-1 and ERF-2 is that a lot of documentation involve in ERF-1 due
to first time dealing with bank while less documentation involve in ERF-2.

34
FAPC:
FAPC is also uses to fulfill working capital requirements. Spread in case of FAPC varies
from bank to bank. We present documents to bank. Bank convert foreign currency in PAK
rupee and give to the company. When company receives cash from export sale, repay
loan in PAK RUPEE. Interest amount paid in PAK rupees.
MARK UP= KIBOR+SPREAD

FE-25:
In case of FE-25 loan taken from bank will be in foreign currency (currency of sales
contract). Mark Up also paid in foreign currency. To fulfill our working capital
environments we convert this currency in PAK rupees.
MARK UP= KIBOR+SPREAD
Spread varies from bank to bank.

Cash finance:
Pledge lines are included in cash finance. Bank takes the possession of goods from
some margin it is mostly use for the raw material (cotton). When we have to use this
cotton, we pay the amount of it to the bank and bank DE pledge this cotton for us. This
line is for limited time so company has to pay mark up for this period.
MARK UP= KIBOR+SPREAD

Running finance:
A Running Finance is a financing product issued by a financial institution to its
customers on daily basis in order to meet the daily needs of its customer. There is no fix
time period for this loan company can use this loan with in a limit. Whenever company
uses this loan, it has to pay markup.
MARK UP= KIBOR+SPREAD

Offered letter:
Offered letter consist the list of all lines of a bank with all terms & conditions

35
Second week:
At the start of second week, I met Mr. Irfan Chahudary manager export finance.
These main task done by manager export finance

1. Fulfill the formalities of insurance

2. Activities of Corporate finance
3. Documentation related to ERF

Documentation related to ERF

When we do a sales contract with a party. This is one page agreement which show to
the bank for getting ERF. This contract contain following details:

1. CONTRACT NO
2. PARTIES INVOLVED
3. DESCRIPITON OF THINGS TO EXPORT
4. QUANTITY
5. PAYMENT TERMS
6. EXPECTED SHIPMENT DATE
7. WAY OF SHIPMENT
8. NO OF DAYS
9. TERMS

Two type of term involve:

1. CAD:
Cash against delivery: on the presentation of documents cash will be given.
2. DA:
It is the delivery against number of days it can be 30, 60, 90 0r 120 days

Bank uses this document so that it can verify that this loan is used for export purpose
only.

36
For export purpose, we need following documents:

 COMMERCIAL INVOICE
 BILL OF LENDING
 GOOD DELIVERY NOTE (GD)
 E FROM

When export is done EPRC (export proceed realization certificate) use to get money from
bank. EPRC document has two kinds of reference numbers.

1. FTBC(funds against bill of collection)

2. FBP(fund against bill of payment)

FTBC:
FTBC no. use when condition on LC is DA base. For DA wait for the payment for
agreed no. of days or discount the LC.
FBP:
FBP reference no. use when LC term is CAD based. For CAD term we can get at the
spot payment on presenting the documents.
Cancellation of contract:
Contract is cancelled sometime due to any reason in this case a document prepare by
the name of “cancellation of contract”.
When a contract cancel company should pay fine to bank and payback loan.
Subtitution:
To avoid fine company do other export contract with other parties with in the
amount of loan. New document formed for thispurpose.
For ERF commercial bank kept annexure deal and shipment document and forward
all other documents to SBP.

37
Insurance finance:
Assistant finanace manager of insurance of finance do all activities of insurance
finance on the behalf of azgarfd9 . He maintain all isnurance coverage and tell insurance
coverage amount to the respective finance manager and he will pay it the insurance
companies and insurance companies give claim to the company.
Insurance is done to cover the stock risks, fire and water damages, terrorism attacks,
Riot and strike damage, Malicious damage, Explosion, Impact damages and Burglary and
house breaking.
All tengible assets of company are insuraned as stocks, all assests, finished goods,
capital insurance, employees(medical insurance, death insurance, salary treatments and
medical cards).
Names of insurance companies:

 ADAMJEE
 EFU general insurance
 New Jubilee (vehicles)
 EFU LIFE INSURANCE
 EFU health insurance
 Reliance insurance
 UBL insurance

Cash Inflow:
There are two types of sales cash inflow:

1. Inflow from local sales

2. Inflow from exports

38
Letter of credit (L.C):
A letter of credit is a guarantee from a bank that a particular seller will receive a
payment due from a particular buyer.
The bank guarantees that the seller will receive a specified amount of money within a
specified time, in return for guaranteeing the payment.
In this process, company’s bank and customer’s bank involve. Therefore, that payment of
order is done through banks.

Parties involve:
The Applicant
The Applicant means the importer (buyer) who requests a bank to issue a Letter of
Credit

The Beneficiary
The Beneficiary means the exporter (seller) who finally receives the payment on

fulfillment of terms and conditions laid down in an L/C.

Issuing Bank:
The issuing bank is the one who issues the L/C and makes the payment on behalf of
importer as per the terms and conditions prescribed in L/C.

Advising Bank:
Advising bank is usually in the country of the seller. The Advising Bank advises the
exporter / seller / beneficiary that an L/C is received for the issuing bank and informs him
about the terms and conditions of the L/C. The advising bank is not responsible for the
payment under L/C.

39
Components of LC:
1. Name of issuing bank
2. LC type (revocable or irrevocable)
3. Issuing date
4. Buyer’s or applicant name
5. Seller name or beneficiary
6. Currency
7. Shipment date
8. Expiry date
9. Documentary credit no.
10. Amount
11. Payment terms

Sometimes amendment needed after the preparation of LC so that new LC with

amendment, no. of amendment and new issuing and expiry date formed.
One LC copy is provided to the both exporter and importer bank. When LC is open and
order is ready to dispatch exporter need some documents to send to the importer. These
documents are following:

 LC
 Amendment (if any)
 Bill of exchange
 Commercial invoice
 Good declaration form
 Fax report
 Country’s custom invoice
 Certificates

40
 Mostly beneficiary’s certificate, certificate of origin, inspection certificate and
compliance certificate etc.

 Form E (original, duplicate, triplicate)

 Beneficiary’s certificate
Company sent a non-negotiable shipping document to the applicant
(importer) through email and through DHL courier within 7 days from the date of
shipment. It can be made for multiple reasons and varies from condition to
condition.

 Shipment advice
Show the name of the carrying vessel, date of shipment, bill amount, and no.
of DC, date of DC (shipment advice sent through fax and in result made a compliance
certificate.)

 Compliance certificate
It is for confirmation and confirmation repots are also attached as for fax
confirmation and export packages. As beneficiary certificate, it can also be made for
various reasons.

 Shipping mark
Mention all export packages.

 Certificate of origin (certify by PRGMEA)

Chamber of commerce issues certificate of origin/concerned govt. approved
authority satisfying that the merchandise or goods are of Pakistan origin.

 Packing list
Shows gross and net weight of the goods.

 Bill of lading/ airway bill

A Bill of Lading is a document issued and signed by a shipping company or its
agents acknowledging that the goods mentioned in the bill of lading have been duly

41
 received for shipment, or shipped on board a vessel, and undertaking to deliver the
goods in the same order and condition as received, to the consignee, or his order or
consignee, provided that freight and other charges specified in the bill of lading have
been duly paid.

 Copy of DHL receipt

When shipment received, documents exchanged and deal closed. In case of
DA base term company discount the bill for payment and return the loan to the bank
In LC it will be mentioned it is sight (15days/cash) or 30, 60, 90,120,180(on
credit) days. Bill of lading date will be starting date.

Discounting:
While discounting a bill, the Bank buys the bill before it is due and
credits the value of the bill after a discount charge to the customer's account. The
transaction is practically an advance against the security of the bill and the discount
represents the interest on the advance from the date of purchase of the bill until it is due
for payment.

FBP:
It is fund against bill of purchase. Documents are forward to the
bank for discounting and bank pay to the company at the spot and charge interest against
it.

FAFB:
It is fund against foreign bills. It is not like simple discounting. In the
case of FAFB bank give the company loan against the export, documents and company
pay back this loan when he receive the payment form customer. Bank also charge interest
for giving loan to the company.

Activities of operation finance:

42
 On daily basis assistant managers, check cash inflow and cash out flows. They sent
documents to the bank for discounting. Rate of discount calculate by treasury
department. Payments from inflows are transfer to the bank account for the operation of
company. Some operations are purchase of yarn (raw material), chemicals, store & spares
etc.
Operation manager finance calculates funds on weekly basis then compare calculated
and projected funds.

Third week:
When the third week starts, I met the company secretary Mr. Ijaz Haider who told me
all about secretary department. All the documentation regarding CDC, KSE and SECP are
deals here. I studied here the CDC, KSE and SECP file and important documents in those
file. The knowledge I get from here is:
For every public company, it is the necessary requirement according to the ordinance
law 1984 that company must hire a company secretary who deals with the Board of
Director and Chief Executive. In Azgard9 Company Secretary is the head of corporate
department.

Important functions perform by Company Secretary:

1. Implement the listing regulation by KSE.

2. Quarterly and annually statements are published in his surveillance.
3. Arrange quarterly and annual meeting for Board of Directors.
4. Arrange quarterly and annual meeting for audit committee.
5. Inform all directors about the meetings.
6. Resolve the shareholders problems.

43
 7. Arrange general meeting.
8. Sent the notice of general meeting to the KSE, SECP, CDC and invite
minimum 10 members of the company for this meeting
9. Deals with CDC, SECP and KSE.
10.Arrange extra ordinary general meeting (if required).
11.Take approval of accounts from BOD’s then shareholders.

Figure 2.1

Important documents in SECP file:

1. Form A:

When company conducts annual general meeting “Form A” is formed. From A

contains list of all charges details, directors and shareholders (both physical and
CDC).

44
2. Query reply document:

When SECP send a notice company reply this notice in form of document,
which is called Query Reply Document.

3. Form 29:

It is form according to the company ordinance 1984, section 205.

When any Board of Director and officer from following change Form 29 is formed.
Officers are:

 Chief executive
 Managing agent
 Secretary
 Chief Accountant (CFO)
 Auditors
 Legal advisers

Form 29 contains the following list:

 Name of new Director

 Name of new Officer
 Incorporation number: it is the company registration no. in SECP.
 NIC number of respective person
 Passport number of respective person if he is not from Pakistan
 Father/husband name
 Usual residential address
 Designation
 Nationally
 Qualification
 Date of present appointment or change

45
  Changes stating how appointed or changed
 Remarks
 Acknowledgement now E Service is used instead of acknowledgement

4. Form 27:

Form 27 is formed according to the company ordinance 1984 section 184.

This contains the list of persons consenting to act as directors.
This form contains the details as:

 Name
 Father/ Husband name
 Address
 NIC or Pass port no.

5. Form 28:

Form 28 is formed according to the company ordinance 1984 section 184.

This form contains the name of person consent to act as director. It is a type of claim
from the person who have announced for director
Details in the Form are:

 Name
 Father/ Husband name
 Address
 NIC or Pass port no.
 Signature

6. Form 31:

Form 31 is formed according to the company ordinance 1984 section 222.

46
This form contains return containing particulars of beneficial owner ship of listed
securities.
(Duly filled and signed)
Details in the Form are:

 Incorporation Number
 Name of the company
 Name of director or officer
 Fee paid

In this director or officer declare that I have obtained the beneficial ownership in
company and specify following particulars.

 Name in full
 Father or husband name
 Address description
 NIC or pass port no.
 Number And class (if any of the security beneficially owned)
 Cost in PAK rupees.
 Date of allotment/transfer of the shares in the name of the person or each of the
persons referred to above.
 Date of acquisition of the beneficial ownership.
 Particular of the person from whom the beneficial interest acquired.

7. Notice For annual general meeting:

Adjourned annual general meeting

8. Notifications send by SECP:

In case of any change in regulation.

47
9. Show Cause Notice

Important documents in KSE file

1. Free Float of Shares:

Company informs KSE about the shares available. In accordance with the regulation
no.21 (3) of the listing regulation, company provide free float. Which contain
following details:

Total outstanding Shares 449,349,439

Less:
Shares held by directors
Government holdings as promote/acquirer
Shares held by associated companies
Shares held with general public in physical form
Free Float
Toatal number of shares in physical form 3,488,483
Toatal number of shares in cds 445860956 .

Table 2.1

2. Consent to act as Share Registrar

3. inform KSE about appointment of share registrar

4. inform about change in board meeting time

5. If meeting cancelled because of any issue, we have to inform KSE.

6. Closure of transfer registrar of TFC holders

7. Annual listing Fee Payment Document

8. Financial results for the year ended

Important documents in CDC file

1. Redemption of PPTFC term finance certificate document written to CDC.

48
 2. Consolidation/clubbing of convertible and non-convertible Preference Shares Of
Azgard9 Limited

3. Confirmation of the CDC Nominee Holding in the member’s Register

4. Paid up capital/total issue:

When company want to update our paid up capital company tell CDC to update paid up
capital. CDC demands audit report to do this.

5. Billing for fresh issue fee:

When company issue additional shares (right shares), it have to pay fresh issue
fee to CDC.

6. Allotment of Bonus Shares/Certificate

a. Bonus shares
When company earns profit, it distributes its profit in two ways in form of
cash dividends or in form of stock dividends.
Stock dividends are bonus shares. Shareholders can earn profit by selling
these shares in the market.

Fourth week
Internal Audit Function:
Azgard9 set up an efficient and energetic internal control system with operational,
financial and compliance controls to carry on the business of the company. The Audit
committee reviews internal audits findings, and where necessary, action is taken on the basis of
recommendations contained in the internal audits reports.

49
Audit Report:
Audit report consists of:

1. Observations
2. Findings
3. Recommendations

These recommendations are presented to the managers where necessary action are
taken according to the condition.
Internal audit is very beneficial for company because it provide assistant to external
auditors. External auditors take help from internal auditors report.

External audits:
Messrs KPMG Taseer Hadi & co, charted ccountants, member firm of KPMG
international, a reputable chartered Accountatns firm completed its tenure of appointment
with the company and being eligible has offered its services for another term.

Import process:
First at the site employees, check the requirement of the product. Then they tell their
requirement to the marketing department. Marketing department contacts from the parties
and final the rates to purchase the goods. Now Performa is formed. This Performa is forward to
the import department.

Performa:
Performa is one page document, which has the signature of both parties, and the
conditions of deals are also mentioned on it. Import department check the details of it and
verify the approving authority.

50
Open the LC:
When Performa verification has been done then next step is to open the LC. If LC has
clause that company will send person for inspection. It has to send him for inspection and he
will sign certificate.
LC purpose is security so company will get things according to requirement. Import
department deals mostly two types of LC:

 local LC
 import LC

Confirmation of LC:
In case of import LC mostly countries demands the confirmation of national bank for
their security. Then LC documents are sent to the seller’s bank.

Release shipping documents:

Exporter sent shipping documents along with necessary certificates to the bank. By
giving payment to the bank, import department take the possession on shipping documents.

Release the shipment:

By showing these documents on port company take their good.If company wants to
release shipment before the arrival of shipping document. Payment is made to the bank.
Therefore, they give acceptance. By showing this acceptance on port shipping can release.
Bank gives shipper guarantee that we are responsible for shipping documents .

Identity bond facility:

On import company have to pay custom duty to overcome they have I bond facility.
Bank give facility to exporters that if they use these import products for production of their
product that they have to export in near future they have no need to pay custom duty. For this

51
purpose company gives cheque and under taking to bank that if company will not export they
can take their cash of custom duty from this cheque.

Terms:
HS code: Unique for every product
FTT: foreign telegraphy Transfer
Non-LC: No bank involves it is direct party dealing.
UCP: uniform custom practice: give rules and standards.
Covering letter: have record of documents. It is for the presentation by
exporters.

Fifth week
Export process:
All the customers dealing of azgard9 is the responsibility of marketing department. Once
marketing department made a deal with customers and form a sale contract. This sales contract
sent to the trade export department

Sales contract:
Sales contract is one page document duly signed bay both parties. This contains the rules and
regulation related to this contract. Trade department check the details of this contract and then
precede its process.

LC or Non-LC:
Some contracts are LC or some are Non-LC. In case of Non-LC payment is advance of
in case of LC payment is depend upon LC terms as DA bases or CAD bases. When buyer sent
the LC trade department check this LC and its terms and conditions. If need of amendment
sent it or amendments. When LC is received trade department sent shipping documents to
the customers.

52
Shipping documents:
Trade department prepare the shipping documents necessary for the exports. These
documents are:

 Bill of exchange
 Commercial invoice
 Bill of lading/ airway bill
 Good declaration form
 Form E

Various certificates also prepared according to the demand. These shipping documents and
certificates are sent to the customer so that they can get their good from port.
When customer receives his goods, he makes payment in case of post-payment Trade
Department send these documents to finance department so that they can negotiate with
bank for payments on discounting.

Logistics handling:
Logistics handling is also done here along with documentation handling.
Logistics handling include that how the goods are sent from Manga Mandi or Muzaffar Garh to
air -port or seaport.
Some sources of transportation are:

 Containers
 Buses
 Trucks

This department also does cargo handling.

Terms:
RND rebate
This is the subsidy from Govt. on export. Its purpose is to promote export.
Non-LC:
In Non-LC, payment is advance. When customer does, payment then company sends the goods.

53
Sixth week
Purchase process of stores and spares:

Purchase Requisition (PR):

Purchase process starts form the requirement of any store item on site. So on the PR
document is generated according to the demand. It is a manual document then it is transfer to
the oracle system then this document called OPR (Oracle Purchase Requisition). This document
is signed and verified by the GM, which authorizes it.

Purchase plan:
Now this document is forward to the purchase department where a purchase plan is
formed.

Quotation:
Purchase department take quotation from different vendors. Sort out these quotation
so that they can decide that which price is suitable to purchase this good.

Purchase order (PO):

After the selection of vendor, they made purchase order. PO is manual or system
generated document and has a standard format. In case of import, purchase this PO send to the
trade department for open the LC and other documentation. In local purchase, goods are
purchased and vendor sends them to the mill.

Inward gate pass (IGP):

When goods enter in the mill at and receive at the gate a manual receipt formed that is
called inward gate pas.

Good receipt note (GRN):

When goods receive by the store assistant system generated note GRN formed. Here
employees check the quality and quantity of the goods, if they are not according to the order
then return them.

54
 GRN and IGP send to the purchase department they check and verify them and forward
them to the accounts department so that they can enter these detail in system for the
bookkeeping. After entering details in system accounts department send these documents to
finance for payment.

Seventh week:
Spinning accounts:
Raw material purchase:
A senior account officer is responsible for raw material purchase and their all entries.
Purchase process is same as the purchase department process. All documents from site are
send to him these documents are:

 PR
 QUOTATION
 Contract
 Purchase order
 Receipt cotton

Company’s documents Second party documents

IGP OGP
Raw material weight(mill weight) Weight note
Lab testing Builty ( transport receipt)

Table 2.2

55
All entries of raw material purchase done in the oracle system. Mostly this purchase is on credit
so entries done in A/P system. When payment is due finance department tell him to make
payment from specific account. He made payment to the party and do a system entry of
payment.

Advance payments to site:

Sites of azgard9 are away from main city so there are no banks to fulfill the cash needs
at the site for at the spot expenses so to fulfill the cash need at site a fixed amount of cash
given to the cash officer at the site.
Account manager generate request for advance payment. This is estimated amount
about expense. An authority authorizes it. Cashier use this cash for the daily expenses as AC
repair, electricity and telephone bills, lifer repair, maintenance and send the bills and other
details of expenses to the account department of head office. Account officer verify these bills
and enter the detail in system for bookkeeping.

Tax payment and funds entries:

Two types of tax entries are done here:

 Withholding tax
 With income tax

Provident fund:
Azgard9 deduct certain amount from employee salary and same amount is given to
them when they leave job. Provident entry is done here.
EOBI:
EMPLOYEE OLD AGE BENEFIT INSTITUTION is a Govt. institution for employees benefit.
Some amount from the employee’s salary deducts and deposit in EOBI account. EOBI entry is
done in A/P department.

56
Bank reconciliation:
After 15 days of one month do the reconciliation of bank statement and own oracle
system entries. There are four heads of reconciliation statement and applied on closing balance
of company.

Two from company:

1. Un Present check (add back)

2. Un Credit check (less)

Two from bank:

3. Not debited in bank (add back)

4. Not credited in book(less)

These four heads apply to the bank statement to get a final balance. This balance should be
equal to the final balance of bank statement.
Three payments modes:

1. Through LC
2. FTP
3. Through bank

Simple payment entry:

When purchase inventory A/P increase. Therefore, entry will be:

Inventory Db.
A/p Cr.

On the payment entry will be:

A/p Db.
Bank account Cr.

57
Assumption Cost
We do advance booking to determine lending cost.
This cost will include following:

 Opening Balance
 Commission
 Guarantee charges
 Bank cost
 Duty charges
 Clearing charges
 Packing charges
 Agent charges
 Freight charges
 Sales tax
 Income tax
 FED and withholding tax we pay to Govt. and Govt. it refund to company later.
This all must match to ledger

In oracle, an account officer does the following entries:

 Commission on export
 Fund transfer
 LC payment
 Insurance payment
o Health insurance
o General insurance
o Life insurance

58
Eighth week:
In House oracle system:
This system has following development in it:

 Form developer
 Application development
 Databases
 Graph development
 Report development

Form Developer
Forms are developed through query or wizard. Then connect these form to the
databases. Data is entered through forms and saved in the databases.
Graph Developer
Data is displayed in graph. Query is used to represent graph.
Report Developer
Report is used to display record. Queries are used to display reports. Many types of
reports are used and available for the user to view selected data.

Development Tools:
Programmers follow SDLC for development and prototypes and dummies s in the process

Desktop
Oracle (6i)
Front End
Developer Web Base
(10g)
Application
Express
Edition
Back End Data Base
Enterprise
Edition

Figure 2.2

59
Web base (10g):
This development started on 25 June 2013 for denim. Their marketing department is in
Italy there is no ERP department so they can access through browser on line it.
At system back end, all rules are applied like accounting rules. This is web based so every
authorized person can access from any side.

Desktop (6i):
6i version is used for desktop applications and this app cannot access through web.
Data base tools:

 Toad 9.7
 PLSQL developer
 SQL Developer

Programming languages:
For programming

 PLSQL
 PHP
 JAVA

Back up:
System takes daily automatic back up for the safety of data. Time to start back up is 9
pm. After the system back up this data transfers on DVD and store on off-site locations.

Help manual:
Help manuals are attach in PDF format for the ease of users.

E business suite:
Azgard9 purchased an oracle system it is very effective because all application are
integrated and can store billions of data.

60
 EBS department is responsible for its maintenance and configuration. This oracle system
is very costly and company has to pay annually for its license.
Application front-end site is called functional site and source code is called technical site.
This team also does customizations not development. User tell them their requirements and
they implement is by changing code. When a problem occur, first the employees check
functional site then technical site.

Logs:
Logs are maintained for these purposes:

1. Fraud detection
2. Fault detection

Back up process of EBS is same as in house development.

Create the E-mail Account

To create the E-mail account of an employee, the employee will communicate the name,
designation and department with the Information Technology (IT) department. The employee
has to fill the “User Account Creation Form” to activate the Login name and E-mail address. E-
mail shall be provided if recommended by Head of Department (HOD), otherwise only Login
name will be created for the employee. Those employees who were recommended to get E-
mail address shall submit the “User Account Creation Form” to IT department and the System
Administrator will activate their E-mail address.

Network security:
Network security is implemented on all servers by defining these things:

 Domain control
 Mail server
 Right defined
 Install antivirus
 Password on Wi-Fi devices
 Take backups

61
 Mail server has no threat within LAN but on internet it can be attacked by middle-man,
hacker etc. To avoid this data transfer in virtual tunnel after encryption or hashing.

Manageable switches:

 To avoid busy networks use manageable switches of Linux or SISCO. (companies,

SISCO is market leading company).
 Manageable switch provide loop free environment.
 Have gaga uplinks.
 Works on layer 3 and do routing on the base of IP and frames (according to
model)
 These switches are used for customization.

Data rack:
Physical security cabinets of different size are available in market are called data racks.
Switches and routers are kept in data rack. All switches are connected to the central hub.
Manageable VLAN switches are used here.
Tagging:
Tagging is done to identify both ends of wire.
Cable manager:
Cable manager is used to hide cables.
Uplink:
Uplink means switch-to-switch connectivity.
KVM Switch:
KVM Switch is used for manageability. It is not manual switch. Eight servers can
entertain through one switch.
Railing kit
Railing kit are used to keep bound servers

62
Manager associated with; their management style, strain and
stress, conflict and appreciation

63
Application of Skills:
Whole period of my internship at Azgard9 is the great opportunity for me to implements all
knowledge and skills learned during the study. These skills and knowledge helps me a lot to
understand the working process of azgard9 and to complete my internship report. As the
Azgard9 is an IT oriented organization and all accounts of it are managed on ERP system. By
having, some knowledge related to IT I faced no problem to understand this technology. Some
things, which are easy to understand, are:

 Financial position
 Short term and long term financing
 IT background
 LC open process
 Management skills
 Dealing and negotiation with banks

New Things Learned:

Although there are many concepts that I had learned during my study at IBIT but there are
many things that I had learned when doing my internship. I learned how to implement this
knowledge practically, accounting entries in ERP system, import and export process, short-term
financing lines from banks and all documentation related to these processes. I also learned how
to survive in a formal office environment. I observed that one should be practical and not be
very emotional and be professional at his work.

64
Chapter 3

 Overall summary
 Specific recommendation
o Organization if any
o IBIT to improve its curricula and methods of teaching
to BBIT students

65
Conclusion
The textile & apparel sector is amongst the largest and most significant in Pakistan s economy,
accounting for over 60% of total merchandise exports and providing employment to 38% of
large scale manufacturing sector workforce. There is an abundant supply of local raw material
as Pakistan is the 4rth largest producer in the world.
There is also an abundance of local labor available at a competitive cost when benchmarked
against regional competitors. Against this backdrop, the industry remains largely fragmented
with few large-scale integrated players.
Worldwide denim production capacity is over 6 billion linear meters. Denim is the world’s
largest cotton textile product with estimated per annum global sales of 4 billion units.
Azgard Nine is Pakistan s largest denim products business by sales with a fully vertically
integrated Manufacturing chain. From cotton to retail ready apparel products, In house
capability for spinning, Weaving, Design, finishing and stitching enables control over the entire
value chain and provides a significant competitive advantage in facilitating faster speed to
market and control over product quality.
With Longstanding relationship with global retailers and brands, and an ability to rapidly build
up manufacturing capacity, Azgard nine is well poised to cater to an expected increase in global
demand for denim products.
The year 2012 proved very challenging due to a globally recessionary climate affecting all facets
of the business. While the business remained under pressure, Azgard Nine was able to protect
its value added services to its products portfolio. The key focus remained on meeting and
indeed finding ways to exceed customer expectations.
In addition to Azgard Nine vertical manufacturing capabilities which were already providing
customers solution concepts was added. The company now offers the client a choice of full
product development, product design and a complete logistics solution. Traditionally the
customer has been sourcing supply of the product only. Now the client has the option to source
a full supply chain solution directly from the Company. This value enhancement helped Azgard
Nine to grow with its existing customers and add new customers as well during a difficult
period.

66
Recommendations for Azgard9:

 There should be separate equipment for Training room.

 There is a need of strong communication within each department and between the
departments.

 Locate all the sub-departments of HR at same place. It will help to increase coordination
between departments.

 Internees should be free to visit all departments.

Recommendations for IBIT:

 IBIT should make a CV book, which should be forwarded to the well-named

organizations.

 IBIT should conduct seminars to promote its degree.

 IBIT should arrange industrial tours for better understanding of learned knowledge.

 Department should arrange internship programs for the students

.

67