INTERNSHIP REPORT ON

Prepared by:

Name: Ali Raza

Class: BBA
Roll #: 587125 (28)
Session: 2020-2024
Registration #: 2020-GCUF-057802

LYALLPUR BUSINESS SCHOOL (LBS)

GOVT. GRADUATE COLLEGE UNIVERSITY FAISALABAD

i
ii
 PREFACE
Starting with the Name of ALLAH the Most Merciful

In the start I would like to pay thanks to ALMIGHTY ALLAH, with the bottom of my
heart who blessed me with HIS kindness to complete the given Project.

The Commerce Department of the Government College University Faisalabad want that
the Students have to know that how the theoretical knowledge is being applied as
practically.

For this purpose, the respectable instructor sends the Student to various Organization as
well as gave different sort of assignment and projects. Furthermore, every student has to
complete 4-week internship program in well reputed organization during the completion
of BBA degree.

I have selected Masood Textile Mills Ltd. Faisalabad. It was a golden chance for me to
enhance my knowledge practically. MTM developed and shaped my capabilities and
skills in the practical environment. Furthermore, during this period, I obtained a lot of
information. I hope this practical and valuable.

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 INTERNSHIP REPORT COMPLETION CERTIFICATE

It is certified that the Internship Report has been successful completed by the

students under my supervision. It is also certified that the Report meets all criteria and

standards laid down for Completion of Degree.

The Details are as Follows:

Organization Name: Masood Textile Mills

Student Name: Ali Raza
Class: BBA
Roll No: 28
Session: 2020-204
Registration No: 2020-GCUF-057802

Signature:
Mam, Saira

Date____________

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 DEDICATION

I need to commit this work and exertion to my cherished guardians the adore and
Affections of whom is continuously a source of trust and motivation for me, as well all
my instructors right from course one who guided me and made a difference me to achieve
this assignment the internship bosses and other staff who guided me in each matter and
who made a difference me amid my internship period they gave me certainty to
accomplish this errand and this preparing and direction will offer assistance me all
through my career.

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 ACKNOWLEDGEMENT
First of all, I thank my all respected teachers for providing me comprehensive knowledge
about Commerce Courses and also for providing me the opportunity to complete my
internship program in FBL to enhance my practical knowledge about banking sector of
Pakistan. I am also indebted to the followings because without their help, I would not be
able to achieve this practical knowledge:

I specially acknowledge these efforts to the persons of MTM who facilitated me during
internship in Masood Textile Mill.

Mr. Muhammad Ali

Dy. General Manager (Finance)

Mr. Muhammad Saleem

Finance Manager MTM

Mr. Nasir Ali Zia

Group General Manager ( HR )

Mr. Tahir Mehmood

HR Manager MTM

I got benefited from all the persons who met me during session and I am really thankful
to all those people and their efforts for me. I have learned a lot under their kind
supervision.

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vii
 TABLE OF CONTENTS
Chapter no 1.........................................................................................................................1
INTRODUCTION OF THE ORGANIZATION.................................................................1
introduction..........................................................................................................................2
1.1 the major products of the company are..........................................................................3
1.2 history.............................................................................................................................3
1.3 management information................................................................................................5
1.4 vision and mission statement..........................................................................................7
1.4.1 vision statement...........................................................................................................7
1.4.2 mission statement........................................................................................................7
1.5 organization hierarchy....................................................................................................8
1.6 management and departmental hierarchy in mtm..........................................................9
1.7 personal experience........................................................................................................9
chapter no 2........................................................................................................................10
DEPARTMENT OF THE MASOOD TEXTILE MILLS................................................10
departments........................................................................................................................11
2.1 production department..................................................................................................11
2.2 spinning........................................................................................................................11
2.3 function & operation of spinning section.....................................................................12
2.3.1 mixing section...........................................................................................................12
2.3.2 flow of mixing hall....................................................................................................12
objects of mixing hall.................................................................................................12
2.3.3 blow room.................................................................................................................12
2.3.4 carding section...........................................................................................................12
2.3.5 drawing section.........................................................................................................12
2.3.6 combing section........................................................................................................12
2.3.7 simplex section..........................................................................................................13
2.3.8 ring section................................................................................................................13
2.3.9 auto winder/conner....................................................................................................13
2.3.10 packing section:.......................................................................................................13
2.4 knitting.........................................................................................................................13
types of knitting..........................................................................................................14
2.5 knitting faults...............................................................................................................14
2.6 fabric dyeing.................................................................................................................15
2.6.1 lot section.................................................................................................................15
2.6.2 dyeing section............................................................................................................15
2.6.3 types of dyeing..........................................................................................................16
2.7 finishing........................................................................................................................16
2.8 washing........................................................................................................................16
chapter no 3........................................................................................................................17
PRODUCTS INTRODUCTION........................................................................................17
mtm products......................................................................................................................18
3.1 yarn...............................................................................................................................18
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3.2 fabrics...........................................................................................................................18
3.3 garments.......................................................................................................................18
3.3.1 athletic.......................................................................................................................18
3.3.2 sports wear................................................................................................................18
3.3.3 under wear.................................................................................................................18
3.3.4 active wear.................................................................................................................18
chapter no 4........................................................................................................................19
OWN WORK DURING INTERNSHIP............................................................................19
work done during intership................................................................................................20
SWOT ANALYSIS............................................................................................................23
5.1 strengths.......................................................................................................................23
5.2 weaknesses...................................................................................................................23
5.3 opportunities.................................................................................................................24
5.4 threats...........................................................................................................................24
chapter no 6........................................................................................................................25
FINANCIAL STATEMENT OF THE ORGANIZATION...............................................25
6.1 balance sheet................................................................................................................26
6.2 vertical analysis of masood textiles mills (mtm):.........................................................28
6.3 horizontal analysis of masood textiles mills (mtm):...................................................29
6.4 profit & loss account of mtm.......................................................................................30
6.5 horizontal analysis of mtm...........................................................................................31
6.6 ratio analysis.................................................................................................................32
CONCLUSIONS................................................................................................................46
suggestions.........................................................................................................................48
OUTCOMES AND SUGGESTIONS................................................................................49

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 CHAPTER NO 1

INTRODUCTION OF THE ORGANIZATION

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Introduction

COMPANY INTRODUCTION
Organization Name Masood Textile Mills

Year of Foundation 1984

Authorized Capital Rs.1850.00 Millions

National Tax Number 0658678-3

General Sales Tax Number 0012223

Business Nature Public Limited Company

Vertically-Integrated Textile Manufacturing

Organization/Company Type
Company

Principal Activity Manufacturing

Major Product(s)/Service(s) Knitwear

Number of Employees 24000

Mailing Address Sheikhupura Road Faisalabad

Phone No. +92-41-4713501-9

Fax 041-4713513

Website www.masoodtextile.com

E-Mail [email protected]

Facebook https://www.facebook.com/masoodtextilemillsltd/

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 CH. Nazir Ahmad who was the founder established Masood textile mills limited
in 1984 and now Ch. Shahid Nazir is the chief executive. The Masood textile mill is
established under the company ordinance 1984. The Masood textile Mill is a private
limited company.

The company has latest equipment and machinery to serve globally. The company
has modern computerized networking system. All the Accounting and finance relating
work is carried out through computers. The company has capability in fabric dyeing,
ginning, spinning, knitting, laundry and apparel manufacturing.

1.1 The major products of the company are

Cotton - Synthetic fiber yarn

Knitted - Dyed Fabrics and garments

The company's apparel division, which is producing high quality garments' is

situated at Sargodha road, near Sangeet Cinema, Faisalabad. But its registered office has
shifted to canal road Faisalabad, which is obtained on lease. The company implemented
the quality system and had awarded ISO 9002 certificate. The company maintains
quality standard at all levels to establish consistency and efficiency. The company adopts
standardized tests for quality assurance purpose.

The company has injected 30 m as interest free loan to attain better financial
health. The company has also broadened the capital base from Rs. 60,000 M to Rs.

200,000 M, which is carried out by issuing shares to the embers. The company is
exporting its products to U.S.A, U.K. and Germany.

1.2 History
Masood Textile Mills Limited was established in 1984 by chaudary Nazir
Ahmed. Which is located 32 km Sheikupura road Faisalabad with its apparel Division
located in center of city producing quality garments? MTM is the only textile in the
Pakistan with latest computerized bar code system, which assures quality in every
operation from spinning to packing; products of each dept carry bar coded stickers which
bear all the details and history of the operation of that product. Hence if any problem
accurse one can trace back the root of the problem and enables to prevent the root cause
of the problems in future.

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Besides this, Masood is one of the few textile mills of Pakistan which has in house
Ginning, Spinning, Knitting, Fabric, Dyeing, Processing, Laundry and Apparel
Manufacturing facilities. Masood has also a pride of work with the world best labels.

The vertically integrated operations help as in achieving shorter lead times and
greater flexibility to cater the demand of the customers. The approximate turnover per
annum in us$ 30 Million. MTM is working from 1995 which 75 sewing machines at start
and now has the 2000. Sewing Machines. In 1996 company management has made the
plan to use his own production of yarn for producing value added products because of the
slump in international and local yarn market. For implementation this plan company
made heavy investment in 1997 for modernization and expansion of production facilities
towards value added operations. For this purpose six dyeing machines were installed and
further knitting dyeing and finishing machinery was being imported. Building was also
constructed to install more stitching machines for producing value added products. The
company believes that totality of these factors will make him distinguish qualified to
stand as a symbol of elegance and quality and to gain more honor throughout the world.

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1.3 Management information

CHAIRMAN Mr. Naseer Ahmad Shah

CHEAF EXECUTIVE OFFICER Mr . Shahid Nazeer Aham

CEO
MR. SHAHID NAZIR
DIRECTORS
Mr . Shabir Ahmad Shahid
(Independent Director)
Mr . Shahid Iqbal
(Independent)
Company Secretary

Mr . Nisar Ahmad Alvi

DIRECTOR FINANCE
MR. MUHAMMAD FAROOQ

CHIEF FINANCIAL OFFICER

MR. SHAHID NAVEED
MR. QAISER

COMPANY SECRETARY
MR. ABDUL BARI HAQQANI
AUDITORS

M/S RIAZ AHMAD & COMNPANY

DEPUTY GENERAL MANAGER FINANCE.

MR. MUHAMMAD ALI SB.

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REGIATERED OFFICE / Head Office

P-17/1 NEW CIVIL LINES, BILAL ROAD, FAISALABAD.

MILLS

32-K.M SHEIKUPURA ROAD, FAISALABAD.

Main Offices:

Head Office

P-17/1 New Civil Lines, Bilal Road, Faisalabad - Pakistan.

Ph : +92 41 2600276-376-476-576

Fax : +92 41 8731180

Mills (Yarn & Fabric Division)

32 K.M. Sheikhupura Road, Faisalabad - Pakistan.

Ph : +92 41 4689470-3

Fax : +92 41 4689469

Garments

Sargodha Road, Near Police Station, Faisalabad – Pakistan.

Ph : +92 41 8787931-34

Fax : +92 41 8781361

Lahore Office

16/3A, Eden Homes, Main Gulberg , Lahore – Pakistan.

Ph : +92 42 5753620

Fax : +92 42 5753629

Karachi Office

1-C, 13th Commercial Street, Phase 2, DHA. Karachi – Pakistan.

Ph : +92 21 5800583

Fax : +92 21 5800584

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1.4 Vision and mission statement
1.4.1 Vision statement
A leading producer of textile products by providing the highest quality of products and
services to its customers To strive for excellence through commitment, integrity, honesty
and team work.

1.4.2 Mission statement

“Our mission is to be a dynamic, profitable and growth oriented company by providing
good return on investment to its shareholders and investors, quality products to its
customers, a secured and friendly environment place of work to its employees and to
project Pakistan’s image in the international market.”

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1.5 Organization hierarchy
C.E.O

Director Operations

General Manager

Deputy General Manager

SR. Manager

Manager

Asst. Manager

Deputy Manager

Officer

Asst. Officer

Supervisor

Asst. Supervisor / Operator Helper

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1.6 Management and Departmental Hierarchy in MTM
consists of the following departments;
 Production Planning & Control (PPC)
 Materials Requirement Planning (MRP)
 Spinning
 Knitting
 Processing ( Dyeing , Finishing, R&D, and Q.C & Q.A )
 Human Resource
 Information Technology
 Material Management
 Administration
 Finance
 Industrial Engineering
 Apparel

1.7 Personal Experience

 Daily, Weekly & Monthly Performance Report for all divisions.
 Reconciliation of Accounts with Head Office
 Cost Analysis of Dyeing Process
 Contractual Payments.
 Goods Receipts Note (GRN).
 Advance Payments to Vendors.
 Comparative Statement.
 Bills Clearance & Claims
 Production & Utilization.
 Employee compensation and benefits.
 HR & Other Departments Bills Verification.

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 CHAPTER NO 2

DEPARTMENT OF THE MASOOD TEXTILE MILLS

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Departments
Departmentalization is the arrangements of individual jobs and activities into
groups and these groups are combined to form larger department and units to form the
total organization.

The Departmentalization in Masood Textile is very clear. These departments are

production, marketing, finance, export, purchasing, administration and quality assurance.
Except quality assurance, all departments are under the supervision of General Manager.

2.1 Production department

Production target is given to the production department by the top management
after settling the customer demands and requirements. Then given target is fulfilled under
the guidance of the factory manager. Production department is conducted and supervised
under the guidance of factory manager production manager planning and production
control and assistant quality manager are worked under the factory manager. Basic raw
material for production department is fabric, which is issued by t he store on demand.
When material is issued it is sent to the laboratory for testing purpose.

When the Lab. Test the material and proves that material is according to the
required standard. After testing, material is sent to the cutting department. In cutting
department the trained workers cut fabric on the machines. While cutting the Fabric,
customer orders and needs is kept under consideration. After cutting the Fabric all
material is sent to the stitching department, when various workers sew it on heavy
machines. It ever level, quality is checked by the Quality controller and finally checked
by the quality assurance. If these products are sent to next department where products are
packed in accordance with the customer demand. The quality audit instructions are not
ignored in this respect.

2.2 Spinning
Combination of all processes which are involved in conversion of fiber into yarn.
In textile when we say spinning then we mean to say about the final process in the
transformation of fiber into yarn or thread. The object of spinning and of the processes
that precede it is to transform the single fibers into a cohesive and workable continuous-
length yarn. In spinning process the most important thing is fiber, which is the base of
thread/yarn and thread/yarn is end product of spinning process.

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2.3 Function & Operation of Spinning Section
2.3.1 Mixing Section
Mixing section is basically designed for the purpose of mixing different lots, because
these lots are purchased from different regions and areas and contain different colors,
shades and brightness ranges due to following factors,

2.3.2 Flow of Mixing Hall

Objects of Mixing Hall

 Cotton Opening

 Mixing

 Removing of foreign particulars like jute, and pieces of cloth etc.

2.3.3 Blow Room

The cotton is received in blow room through condensers from the mixing section.
In blow room this cotton is stocked for 12 to 16 hours for conditioning according to the
temperature of blow room, in the form of layers horizontally and cut vertically which is
very old method of mixing the cotton of different regions and characteristics.

2.3.4 Carding Section

In carding section laps are converted into sliver. In carding machines laps are feed
and slivers are received as an end product in cans or boxes.

2.3.5 Drawing Section

Drawing section consists of two sub-sections i) Breaker Drawing & ii) Finisher
Drawing. Drawing is a process in which different slivers are combined together to
produce single sliver. Normally 8 slivers are feeded behind one drawing machine and get
an end product in form of single sliver in cans or boxes, which has the same weight as of
single sliver. The purpose of doing this is that to create uniformity and average out the
weight of each sliver. This process is also called 8/8 process.

2.3.6 Combing Section

In this process short fibers are removed and wastage of combing is called
“Comber Noil” 20% of lap is extracted or removed in the form of comber noil during
combing process. Combs are feeded in comber machine to do this process. Lap received
from lap former is its input while its end product or its output is sliver, which is called
here “comber sliver”.
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2.3.7 Simplex Section
Finisher sliver is input of simplex machine while “roving” is its end product.
Roving is a big bobbin having refined sliver (in the form of package) but thin and slim
than sliver. Roving is further used in “ring department” for making of small bobbins and
after that making of cones. One package normally contains 3,000 meters roving.

2.3.8 Ring Section

In ring section, final spinning process starts. Here in this section roving from
simplex section is turned into fine & sophisticated yarn of different counts. Pulling effect
makes counts. Spindle is a smaller tapering rod; the rotation of which gives the twist and
around which the thread is wound as it is twisted. (There are 14,400 spindles in MTM)
These bobbins are further sent to the Auto Winder or Auto Cones department, where
cones are made from them.

2.3.9 Auto Winder/Conner

Auto winder section is designed to wind the yarn on the paper cones in the
finished product form. Five bobbins are kept in the cone magazine. One bobbin at a time
is dropped in lower part of the machine called “peg” for wrapping while others stay in
magazine. Auto winder gets the new cone automatically after the ending of the previous
cone

2.3.10 Packing Section:

Finally cones are sent to packing section where these cones are thoroughly
examined under “ultra violet lights”. Contamination is checked after that cones are kept in
the temperature of packing hall for 24 hours for conditioning. Then these cones are
packed in cartoons, after wrapping in pollythane bags. 24 cones are packed in one
cartoon.

2.4 Knitting
“Knitting is a process of making fabric by interlacing of the loops, instead of two
sets of yarns crossing each other in weaving”. The single knitting yarn is looped through
itself to make a chain of stitches. These chains or rows are connected side by side to
produce knitted fabric Knitting is derived from the knot and in the process of knitting we
knot the yarn in a specific way that fabric is made. “Complex fabric forming technique in
which, a continuous yarn is interloped to form a cloth”. Needles are used to create each
loop and drawn it through a previously formed loop. Thus developing a cloth from a

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series of inter-linked, chainlike stitches. The knit stitches that occur in vertical columns
are called Wales, and those in horizontal rows are called courses.

Types of Knitting

Basically knitting is of two types.

1- Circular Knitting

2- Flat Knitting

In circular knitting developed fabric is in tubular form and has no open width in both
sides, while in flat knitting fabric is in flat form rather than tubular form. In flat knitting
developed fabric has particular open width. Both types of knitting have further two more
types.

1- Single Knit

2- Double Knit

1- Single Knit

In single knit only single needle is worked to knit. The middle part of the machine is
hollow. In single knitting machines “sinkers” are also used to hold the 2nd yarn.

2- Double Knit

In double knit two needles are working and giving us the required results. And we
can’t observe the knitting process because the chamber is closed. One needle is working
like single knit vertically and other is working horizontally.

2.5 Knitting Faults

Knitting faults are those faults that occurred during knitting process of fabric and
these are mentioned under,

 Oil Spots

 Jersey Trim (Heavy yarn)

 Jersey Trim (Thin yarn)

 Cut & Holes (Due to bad needle)

 Lint Hole

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2.6 Fabric Dyeing
“Dyeing is a process in which textile raw material is completely immersed in dye liquor”.
In simple words dye is a process in which colors are shifted into textile raw material.

 Lot Section

 Dyeing Section

 Finishing Section

 Quality, Final Inspection & Packing Section

 Laboratory (Lab. Section)

2.6.1 Lot Section

In dyeing department lot section is responsible to check the fabric in-detail after receiving
it with patched bar code containing necessary information like buyer’s name, order
number, type of fabric, weight and width etc.

2.6.2 Dyeing Section

Dyeing section is comprised of 15 dyeing machines, which are made by German
Company “THIES”. In these machines, 4 machines are “Eco Soft” which have maximum
temperature capacity 100°C and only cotton based fabric can be dyed on it and 5
machines are “Eco Soft Plus” which are high temperature. 6 machines are “Roto Stream”
of high temperature up to 130°C and polyester is dyed on these machines. Eco and Roto
are the manufactures of these machines.

The distribution of fabric is according to the weight and capacity of machine and trims
are dyed with the relevant fabric.

The other machines used in dyeing section are “Sample Vincher”. These are total 6
machines and used for checking of recipe and dye small lots that have weight less than 80
Kg. The other type of machine used is “Sample Thies” and this is 1 machine of Pakistan
made.

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2.6.3 Types of Dyeing
There are basically three types of dyeing,

 Reactive Dyeing

 Sulfur Dyeing

 Disperse Dyeing

2.7 Finishing
In finishing process “Tubin Gal UGS” chemical is used 2% as softener and added at 45°C
and process for 10 to 15 minutes and then fabric is brought out from machine. Softener is
used to make fabric more flexible and reduce or remove its tension during stretching and
expansion of fabric.

2.8 Washing
Simple washing is done only to remove oil spots. “Stainless 2000” is used 0.50% at 80°C
for 20 minutes to remove oil spots.

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 CHAPTER NO 3

PRODUCTS INTRODUCTION

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MTM products
Masood’s Collection has a wide selection of quality garments including T-shirt,
Polo shirt, Jogging suit, Henley shirt, Raglan shirt, and Tank top, Bikini, Shorts, Pants
and Sleepwear.

The products can be categorized in following formats

3.1 yarn
Masood textile produces highest quality yarn to be bothered the core values of customers.

3.2 Fabrics
To pursue the highest quality in their vision Masood textile produces following
types of fabric to be used in the production of garments.

3.3 Garments

3.3.1 Athletic
Our pro-cotton, blended and polar fabrics when stitched by our skilled hand,
become a rich source of ease, flexibility and vigor

3.3.2 Sports Wear

Sports were never so entertaining. Our yarn dyed polo’s fashioned crew necks and
pants have added more delight to the world’s of sports.

3.3.3 Under Wear

There is unique joy in wearing Masood’s underwear. Being the no.1 exporter of
underwear category in Pakistan, we have specialized in making superior quality under
wears through modern machine attachments and Innovative techniques.

3.3.4 Active Wear

One can fine enough energy and more drive while wearing Masood’s active
wears.

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 CHAPTER NO 4

OWN WORK DURING INTERNSHIP

19
WORK DONE DURING INTERSHIP

Department Overview

The Finance and Accounting Department at Masood Textile Mills is crucial for managing
the company's financial health. Responsibilities include budgeting, financial reporting,
tax management, and strategic financial planning.

Week 1: Orientation and Introduction

I spent my next week in the accounts department of this organization and learn a lot form
this department. Orientation Attended orientation sessions to understand company
policies, culture, and organizational structure. Introduction Met with key personnel in
the finance and accounting department and discussed internship objectives and
expectations. Initial Training Received training on the company's accounting software
and financial management systems.

Week 2: Financial Record Management

I spent my next week in the accounts department of this Financial Record Management
and learn a lot form this department. Invoice Processing Assisted in reviewing and
processing invoices. Data Entry Updated financial records in the accounting software.
Record Keeping Organized and maintained financial documents and records.

Week 3: Accounts Payable and Receivable

I spent my next week in the accounts department of this Accounts Payable and
Receivable and learn a lot form this department. Accounts Payable Assisted in managing
accounts payable, including verifying and processing supplier invoices. Accounts
Receivable Supported the accounts receivable team in tracking customer payments and
generating invoices. Reconciliation Participated in reconciling accounts to ensure
accuracy.

Week 4: Financial Analysis and Reporting

I spent my next week in the accounts department of this Financial Accounts Analysis and
Reporting and learn a lot form this department. Financial Statements Assisted in
preparing financial statements, including balance sheets, income statements, and cash

20
flow statements. Data Analysis Analyzed financial data to identify trends and variances.
Reporting Generated financial reports and presented findings to senior accountants.

21
 Chapter 5
SWOT ANANLYSIS

22
SWOT ANALYSIS
Managers of MTM always review the mission and goals and then they scan the
internal and external environment to identify elements that influence the organization
performance. To determine such elements SWOT analysis is conducted.

SWOT is a method that helps managers identify the organizational strengths (S)
Weakness (W) Opportunities (O) Threats (T).

5.1 Strengths
 Latest machinery

 The mill has latest machinery, which they have imported from foreign country to
meet the international quality standards

 ISO 9002 Certificate

The company has got ISO 9002 certificate which insure the quality standards.

 High Financial Resources

The company has high financial resources.

 Strong market image

The company has strong market image in foreign market. The buyer can purchase
same product from the competitor at low price but due to strong marker image
they purchase from MTM.

 Proven management

MTM has proven management. All management is very competent. They know
how to satisfy their customers.

 Products innovation abilities

The management has product innovation abilities.

5.2 Weaknesses
 Centralized management

The management at MTM is centralized. All type of decisions is made at top

level. Due to centralized, delegation of power only managers have no authority to
make decision.

23
  High cost of production

The cost of production increased, such as material labor quota charges and other
production accessories.

 Small international market share

The MTM has small market share at international level.

5.3 Opportunities
 Potential in market

 Entering new markets

 Addition new product line

 Faster market growth

 Potential in market

5.4 Threats
 Political instability in country

 Economic instability

 Though competition

 Adverse government policies

 Easy access of buyers in world markets

24
 CHAPTER NO 6

FINANCIAL STATEMENT OF THE ORGANIZATION

25
 Year 2023 2022 2021

Cash 2,843,738,000 3,409,200,000 3,691,241,000

Marketable

Securities 3,691,241,000 4,119,696,000 520,321,000

Account

Receivables 520,321,000 704,597,000 2,042,602,000

spare, parts 2,042,602,000 1,660,529,000 348,639,000

stock in trade 348,639,000 348,639,000 97,114,000

Other Current

assets 97,114,000 210,845,000 5,333,708,000

Current Assets 7,501,053,000 8,792,977,000 4,461,281,000

Fixed Assets 4,593,625,000 5,251,793,000 12,014,438,000

Total Assets 14,365,190,000 15,781,673,000 4,810,168,000

Current Liabilities 5,622,277,000 5,769,734,000 730,315,000

Long-term

Liabilities 829,600,000 773,394,000 829,600,000

Total Liabilities 6,451,877,000 6,543,128,000 6,984,258,000

Equity 7,913,313,000 9,238,545,000 99,630,527,000

6.1 Balance Sheet

Masood textile mills ltd
For the year ended 2021-2023

Assets Amounts In PKR

2023 2022 2021
Current Assets
Stocks 172,574,959 127,255,396 95,086,771

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Trade Debts 164,330,952 177,294,427 201,103,671
Cash & Bank Balance 20,239,336 24,412,460 6,583,920
Tax Refunds due from GOVT ----- 17,000 137,401
Total Current Assets 357,145,247 328,979,283 302,911,763
Fixed Assets
Property , Plant & Equipment 17,411,389 20,500,497 24,141,817
TOTAL ASSETS 374,556,636 349,479,780 327,053,580

LIABILITIES & Share

Capital
Share Capital
Issued, Subscribed & Paid Up 25,000,000 25,000,000 25,000,000
Capital
Unappropriated profit 271,741,728 253,119,652 233,644,013
Total Share Capital 295,741,728 278,119,652 258,644,013
Long Term Liabilities
Lease Liabilities- Vehicle ---- 760,450 3,623,959
Refin Scheme (Salaries & ---- ---- 1,837,500
Wages)
Current Liabilities
Trade Creditors 6,199,410 5,635,827 8,368,354
Short Term borrowing 70,000,000 59,800,000 50,000,000
Accrued and other liabilities 2,525,876 2,300,343 1,987,067
Current portion of long term ---- 2,863,508 2,592,687
liabilities-Vehicle
Provision of taxation 89,622 ---- ----
Total Current Liabilities 78,814,908 70,599,678 62,948,108
TOTAL LIABILITIES 374,556,636 349,479,780 327,053,580

27
6.2 Vertical Analysis of Masood Textiles Mills (MTM):
Assets Amounts In PKR
2023 2022 2021
Current Assets
Stocks 46.07% 36.41% 29.13%
Trade Debts 43.87% 50.73% 61.49%
Cash & Bank Balance 5.40% 6.98% 2.01%
Tax Refunds due from GOVT ----- 0.005% 0.4%
Total Current Assets 95.35% 94.13% 92.62%
Fixed Assets
Property , Plant & Equipment 4.64% 5.87% 7.38%
TOTAL ASSETS 100% 100% 100%

LIABILITIES & Share Capital

Share Capital
Issued, Subscribed & Paid Up 6.67% 7.15% 7.64%
Capital
Unappropriated profit 72.55% 72.42% 71.44%
Total Share Capital 78.95% 79.58% 79.08%
Long Term Liabilities
Lease Liabilities- Vehicle ---- 0.28% 1.11%
Refin Scheme (Salaries & ---- ---- 0.56%
Wages)
Current Liabilities
Trade Creditors 1.65% 1.61% 2.55%
Short Term borrowing 18.69% 17.11% 15.29%
Accrued and other liabilities 0.67% 0.66% 0.61%
Current portion of long term ---- 0.82% 0.79%
liabilities-Vehicle
Provision of taxation 0.02% ---- ----
Total Current Liabilities 21.04% 20.20% 19.25%
TOTAL LIABILITIES 100% 100% 100%

28
6.3 Horizontal analysis of Masood Textiles Mills (MTM):
Base Year 2021
Assets Amounts In PKR
2023 2022 2021
Current Assets
Stocks 181.49% 1811.56% 100%
Trade Debts 92.68% 88.16% 100%
Cash & Bank Balance 82.90% 370.78% 100%
Tax Refunds due from GOVT ----- 12.37% 100%
Total Current Assets 108.56% 108.60% 100%
Fixed Assets 100%
Property , Plant & Equipment 72.12% 84.16% 100%
TOTAL ASSETS 107.17% 106.85% 100%

LIABILITIES & Share

Capital
Share Capital
Issued, Subscribed & Paid Up 100% 100% 100%
Capital
Unappropriated profit 116.30% 108.83% 100%
Total Share Capital 114.34% 107.52% 100%
Long Term Liabilities 100%
Lease Liabilities- Vehicle ---- 2.09% 100%
Refin Scheme (Salaries & ---- ---- 100%
Wages)
Current Liabilities
Trade Creditors 74.08% 67.34% 100%
Short Term borrowing 14.0% 119.6% 100%
Accrued and other liabilities 127.11% 115.76% 100%
Current portion of long term ---- 110.44% 100%
liabilities-Vehicle
Provision of taxation ---- ---- ----
Total Current Liabilities 12.52% 112.15% 100%
TOTAL LIABILITIES 114.52% 106.85% 100%

29
6.4 Profit & Loss Account of MTM
For the year ended 2021-2023
Particular Price In Pakistan
2023 2022 2021
Sales 758,272,146 808,318,570 568,100,723
CGS (683,898,278) (731,231,161) (506,331,400)
Gross Profit 74,373,868 77,087,409 61,769,323
Operating expenses
Administrative expenses (21,462,127) (19,230,040) (14,212,649)
Selling expenses (26,360,091) (27,780,073) (9,173,683)
Financial charges (1,665,531) (2,646,819) (2,401,906)
Total Operating Expenses (49,487,749) (49,656,932) (25,788,238)
Profit Before Taxation 24,886,119 27,430,477 35,981,085
Taxation (7,264,043) (7,954,839) (1,806,793)
Profit of the year 17,622,076 19,475,638 34,174,292

Vertical Analysis Ess Arr Exports:

Particular Price In Pakistan
2023 2022 2021
Sales 100% 100% 100%
CGS (90.19%) (90.46%) (89.12%)
Gross Profit 9.81% 9.54% 10.87%
Operating expenses:
Administrative expenses (2.83%) (2.38%) (2.50%)
Selling expenses (3.48%) (3.44%) (1.61%)
Financial charges (0.22%) (0.33%) (0.42%)
Total Operating Expenses (6.53%) (6.14%) (4.54%)
Profit Before Taxation 3.28% 3.39% 6.33%
Taxation (0.96%) (0.98%) (0.32%)
Profit of the year 2.32% 2.41% 6.02%

30
6.5 Horizontal Analysis of MTM
Base Year 2021:
Particular Price In Pakistan
2023 2022 2021
Sales 133.47% 142.28% 100%
CGS (135.06%) (145.60%) (100%)
Gross Profit 120.40% 124.79% 100%
Operating expenses
Administrative expenses (151.00%) (135.30%) (100%)
Selling expenses (287.34%) (302.82%) (100%)
Financial charges (69.34%) (110.19%) (100%)
Total Operating Expenses (191.90%) (192.55%) (100%)
Profit Before Taxation 69.16% 76.23% 100%
Taxation (402.04%) (440.27%) (100%)
Profit of the year 51.56% 56.98% 100%

31
6.6 Ratio Analysis
Liquidity Ratio:

Liquidity ratios are an important class of financial metrics used to determine a debtor's
ability to pay off current debt obligations without raising external capital.

1. Current Ratio:

current asset
current liability

Particular 2023 2022 2021

Current Asset 357,145,247 328,979,283 302,911,763
Current liability 78,814,908 70,599,678 62,948,108
Analysis 4.53% 4.66% 4.8%

400,000,000

350,000,000

300,000,000

250,000,000

200,000,000 Current Asset

Current liability
150,000,000

100,000,000

50,000,000

0
2023 2022 2021

32
2. Quick Asset Ratio:

current asset −inventroy

current liability

Particular 2023 2022 2021

Current Asset 357,145,247 328,979,283 302,911,763
Current liability 78,814,908 70,599,678 62,948,108
Inventory 172,574,959 127,255,396 95,086,771
2.34% 2.85% 3.30%

400,000,000

350,000,000

300,000,000

250,000,000

Current Asset
200,000,000
Current liability
Inventory
150,000,000

100,000,000

50,000,000

0
2023 2022 2021

33
3. Cash Ratio:

cash∈hand +cash at bank + Marketable security

current liability

Particular 2023 2022 2021

Cash in hand + Cash at bank 20,239,336 24,412,460 6,583,920
Marketable security 0 0 0
Current liability 78,814,908 70,599,678 62,948,108
Analysis 0.25% 0.34% 0.10

90,000,000

80,000,000

70,000,000

60,000,000

50,000,000
Cash in hand + Cash at bank
Marketable security
40,000,000
Current liability
30,000,000

20,000,000

10,000,000

0
2023 2022 2021

34
2. Profitability Ratio

Profitability ratios assess a company's ability to earn profits from its sales or operations,
balance sheet assets, or shareholders' equity.

4. Gross Profit Margin

gross profit
x 100
sale

Particular 2023 2022 2021

Gross Profit 74,373,868 77,087,409 61,769,323
Sales 758,272,146 808,318,570 568,100,723
9.80% 9.5% 10.9%

900,000,000

800,000,000

700,000,000

600,000,000

500,000,000
Gross Profit
400,000,000 Sales

300,000,000

200,000,000

100,000,000

0
2023 2022 2021

35
5. Net Profit Margin
net profit
x 100
sale

Particular 2023 2022 2021

Net Profit 17,622,076 19,475,638 34,174,292
Sale 758,272,146 808,318,570 568,100,723
2.3% 2.4% 6%

900,000,000

800,000,000

700,000,000

600,000,000

500,000,000
Net Profit
400,000,000 Sale

300,000,000

200,000,000

100,000,000

0
2023 2022 2021

36
6. Returns on Assets

Net Profit After Tax

Formula
Total Assets

Particular 2023 2022 2021

Net Profit After Tax 17,622,076 19,475,638 34,174,292
Total Assets 374,556,636 349,479,780 327,053,580
Analysis 4.7% 5.6% 10.45

400,000,000

350,000,000

300,000,000

250,000,000

200,000,000 Net Profit After Tax

Total Assets
150,000,000

100,000,000

50,000,000

0
2023 2022 2021

37
7. Returns on Equity

Net Profit After Tax

Formula
Total equity

Particular 2023 2022 2021

Net Profit After Tax 17,622,076 19,475,638 34,174,292
Total Assets 374,556,636 349,479,780 327,053,580
Analysis 0.04% 0.05% 0.10%

400,000,000

350,000,000

300,000,000

250,000,000

200,000,000 Net Profit After Tax

Total Assets
150,000,000

100,000,000

50,000,000

0
2023 2022 2021

38
8. Operating Expenses Margin

Operating Expenses
Formula X 100
Sales

Particular 2023 2022 2021

Operating Expenses 49,487,749 49,656,932 25,788,238
Sales 758,272,146 808,318,570 568,100,723
Analysis 6.5% 6.1% 4.5%

900,000,000

800,000,000

700,000,000

600,000,000

500,000,000
Operating Expenses
400,000,000 Sales

300,000,000

200,000,000

100,000,000

0
2023 2022 2021

39
3: Activity Ratios:

Activity ratios are financial metrics used to gauge how efficient a company's operations
are. The term can include several ratios that can apply to how efficiently a company is
employing its capital or assets.

9. Inventory Turnover Ratio:

CGS
Formula
Average Inventory

Particular 2023 2022 2021

CGS 683,898,278 731,231,161 506,331,400
Inventory 172,574,959 127,255,396 95,086,771
Average Inventory 149,915,177.5 111,171,083.5 95,086,771
Analysis 4.56 6.57 5.32

800,000,000

700,000,000

600,000,000

500,000,000

CGS
400,000,000
Inventory
Average Inventory
300,000,000

200,000,000

100,000,000

0
2023 2022 2021

40
10. Average age of inventory

365
Formula
inventory tornover ratio

Particular 2023 2022 2021

Days 365 365 365
Inventory turnover ratio 4.56 6.57 5.32
Analysis 80.40 55.56 68.60

Average age of inventory

400

350

300

250

200

150

100

50

0
2023 2022 2021

Days Inventory turnover ratio

41
11. Total assets turnover ratio

sales
Formula
Total assets

Particular 2023 2022 2021

sales 758,272,146 808,318,570 568,100,723
Total assets 374,556,636 349,479,780 327,053,580
Analysis 2.02 2.31 1.73

900,000,000

800,000,000

700,000,000

600,000,000

500,000,000
sales
400,000,000 Total assets

300,000,000

200,000,000

100,000,000

0
2023 2022 2021

42
4. Financial leverage ratios:

A leverage ratio is any kind of financial ratio that indicates the level of debt incurred
by a business entity against several other accounts in its balance sheet, income
statement, or cash flow statement.

12. Debt to assets ratio

debt
Formula
total assets

Particular 2023 2022 2021

Debts 164,330,952 177,294,427 201,103,671
Total assets 374,556,636 349,479,780 327,053,580
Analysis 0.43 0.50 0.61

400,000,000

350,000,000

300,000,000

250,000,000

200,000,000 Debts
Total assets
150,000,000

100,000,000

50,000,000

0
2023 2022 2021

43
13. Debt to equity ratio

debt
Formula
EQUITY

Particular 2023 2022 2021

Debts 164,330,952 177,294,427 201,103,671
Equity 295,741,728 278,119,652 258,644,013
Analysis 0.55 0.63 0.77

350,000,000

300,000,000

250,000,000

200,000,000
Debts
150,000,000 Equity

100,000,000

50,000,000

0
2023 2022 2021

44
CHAPTER 7
CONCLUSION

45
 CONCLUSIONS
It’s a period of Globalization, any organization or institute who ignore the element of
globalization automatically kick out from the market. Only those can be survive who
compete this global market perfectly. There is a “Survival of the fittest”.

So the Masood Textile Mills has the opportunity to survive the global market because it
has the better good will and positive earning per share it can capture all the global market.

Masood Textile Mills is also faces a tenor in which there is both opportunities and threats
for it to be able and survive and growth. But many of the challenges that shall occur will
be outside of the control of the Mills.

However, this does not absolve the government of Pakistan and the local Textile industry
from its responsibility to best deal with the climate both locally and internationally and
prepare itself for even greater challenges.

Now there is need that the Govt. and industry realize that a sincere and positive approach
has to be made to meet the challenges of the present day competition environment. In
this regard adequate finance for capital investment, working capital and development of
comprehensive long –term strategies and the stable government.

46
 CHAPTER 8

SUGGESTIONS & RECOMMENDATION

47
 SUGGESTIONS
1. The MTM should apply IT in the whole organization that interlock between the
departments should be quickened.

2. The production units are not using computers. So that the IT department is
responsible for the barcode tickets responsibility of unit in –charges.

3. The organization including garment division, textile unit and head office should
interlock through wide area network.

4. The organization should expand the span of production to meet the orders in time.

5. The company has to ensure the employees for their existence is the organization.

6. The entire department should be interlinked but independent for their working
operations.

7. The promotion of the products may be taken place through web page or other
electronic media.

8. The employees should be assigned jobs according to their qualification.

9. Control on the turnover of employees

10. Continuous improvement the total quality system.

11. To improve the policies of retention of employees.

48
 OUTCOMES AND SUGGESTIONS
OUTCOMES

1. There is not 100% stability in the organization relating to the order meeting.

2. The use of information technology is not proper.

3. There is somewhere influence of other departments to the IT department.

4. The marketing strategies are not so much satisfied.

5. There is a fluctuation in the working of the factory.

6. The IT department is doing some other jobs relating to the other departments.

7. The internal customers (employee) are not satisfied about their job

8. High turnover of employees (not retention).

49