(This Internship Report Is Submitted For the Partial Fulfillment of the Degree of Master of Business of Administration with a Major in Finane! Supervised By Lecturer Faculty of Business Studies Premier University Prepared By Name: Student ID: Semester: 2 nd . Batc: Pro!ram: "B#$% &ear' "a(or in finance Su)mission Date:2*+,-+2,%.
P/0"I0/ UNI10/SIT& 23ITT#45N4 % Letter of Transmittal Date: 22 nd 6 "ay6 2,%. To Te Su7ervisor Lecturer Faculty of Business Studies Premier University 2itta!on!6 Ban!lades Su)(ect: + Su)mission of internsi7 re7ort on 87erformance of Base textiles ltd9 Dear "adam6 :it due res7ect and onor ;ant to state you tat I am a re!ular student of "B# 2 nd
semester $Finance' ;ant to su)mit te internsi7 re7ort on fulfillment of te "B# de!ree re<uirement. Te re7ort is )ased on 887erformance of Base textiles ltd9. I am !rateful to my su7ervisor for !ivin! me te sco7e. I 7ray and o7e tat you ;ould )e =ind enou! to acce7t tis re7ort and o)li!e tere)y. &ours sincerely6 $ ' Name: Student ID> Semester: Batc: "a(or in Finance Premier University 2itta!on!6 Ban!lades. 2 Acknowledgement #ll 7raises are for #lla almi!ty tat as )esto;ed u7on uman )ein! te cro;n of creation and as endo;ed im ;it =no;led!e and ;isdom. #fter #lla6 is te last 7ro7et "oammed $S#:' ;o )rou!t for us revelation and unlimited =no;led!e and civili?ed te )ar)arian uman )ein!. #ltou! tis re7ort )ase only my name )ut numerous 7eo7le ;ere very im7ortant to te develo7ment of tis re7ort ;itout te su77ort of tem I could never successfully com7leted te internsi7 as ;ell as te re7ort. I am i!ly tan=in! full to te staff mem)er of Base Textile "ills limited. :o really coo7erated ;it me and 7rovide me teir com7lete !uidance. * EXECUTIVE SUMMARY I (oined Base Textile "ills Ltd as an Internee. Te motive of (oinin! te BT" ;as to ave an ex7osure of textile sector and 7otential to avail a sound and 7romisin! career. I devoted our time to learn a)out BT"6 ;ic ;ill )e )eneficial to me if I (oin textile sector. In tis @ ;ee=s internsi7 7ro!ram I attended te lectures of =ey de7artments $2uttin!6 Stitcin!6 PP26 "ercandisin!6 Auality #ssurance6 44T6 Stores' of tis lar!est =nitted !arment manufacturers of Pa=istan ;ic are delivered )y ex7erienced mana!ers runnin! tese de7artments. #fter attendin! te lectures I also visited tese de7artments for ac<uirin! 7ractical =no;led!e. Te o)(ect of tis re7ort tat I ave 7laced is to ex7ress ;at I o)served and ;at are te necessary measures tat can el7 to ca7itali?e te stren!ts to overcome ;ea=ness and remove te treats. . "hapter# $ Introdution - Background of the study: Textile is an inherent talent and skill in this part of the world. At the outset of Textile boom during the end of twentieth century, Bangladesh stepped forward to take the full advantage of its tradition and work force with modernization approach. The result is inevitable with a great success to become one of the largest garment exporters of the world. The Base abrics launched its industrial !ourney back in "#$% and was involved in weaving of medium to heavy fabrics till &''(. )oon it became a reliable and *uality supplier of greidge fabrics at home and abroad. +uring $'s and #'s Base became a uni*ue name in abrics market. Base , having a solid background of weaving experience and great support and inspiration from customers, moved forward in the beginning of the new century. Along with expanded weaving capacity the company made one of the largest dyeing , finishing mill in the country. -ith most modern machinery and skilled expertise behind the machine, Base was able to create a revolution in fabrics marketing to .urope and America. Base abrics made a good name in *uality and commitment within shortest possible time with serious effort and expertise from home and abroad. There is no scope to be complacent with the success. /n the context of highly competitive world of textile the growth and existence depends on *uality and service to customers. There is no compromise on this point. Base believes in *uality, commitment and services which are the tools for growth of the enterprise in last two decades. @ Objectives of the study: By doing this pro!ect / have understood the business strategy of Base Textiles 0td and their marketing strategies. / will have a good understanding about the management and marketing practices of the organization. / have chosen this topic because our economy is very much dependent on textile industry and Base is one of the largest conglomerates in our textile industry. / want to know their business strategies which will help me to implement in future. 1oreover, by doing this report / will understand the basic difference between local companies and foreign companies. And it will also help me to understand the buyers2 psychology. 1ethodology of the study: By taking help of the primary data / will make this report more effective. / will collect data from the Base Textiles 0T+ and also from different textile manufacturers. And it will help me to understand about the demand and supply of the Textile related products. 1oreover, / will be conducting primary research which will be consists of the opinions of different employees who is working in that sector. / will be conducting the primary research through door to door survey, mailed *uestionnaire, personal interview and group discussion. And my sample size will be %'. And all the respondents are the buyers of Base Textile 0imited. 0imitation of the study: There are some limitations of the study. Time constraint is a big factor here. Because it takes lot of time to make the report more effective and suitable for everyone. 1oreover, data availability is another big issue here because company does not want to disclose all the confidential information regarding sales and profits. B "hapter# % 2om7any Profile BASE Textiles Limited C BASE Textiles Limited Garment Manufacturer Bangladesh B#S0 Textiles Limited insti!ated its (ourney in %DD@ ;it a vision of )ecomin! te most reco!ni?ed =nit;ear manufacturer of te country as ;ell as to ta=e te ;idely =no;n re7utation of Ban!lades as a !lo)al clotin! leader to a ne; i! )y offerin! te )est )lend of <uality and efficiency. Focusin! solely in =nit;ear a77arel lines6 B#S0 as ado7ted a structure )y reen!ineerin! its value cain to deliver i! <uality 7roducts in sorter lead+time ;it flexi)ility in order si?e. 5ur 7roduct varies ;itin Polo Sirt6 T+ sirt6 S;eat Sirt6 Pant E Fac=et6 /u!)y sirt and S7orts ;ear. 5ur core stren!t is sortest Lead Time6 In+ouse Sam7le E 2#D section6 i!ly <ualified Forei!n 0x7erts in Gnittin!6 A2 and 4arments section. Auality #ssurance covers from yarn sourcin! to final si7ment. No 2ild or Forced La)or covers :or=7lace safety6 3ealt su77ort ;it 7ure drin=in! ;ater E dinin! facility6 free trans7ortation6 ade<uate sanitation and ventilation system for te ;or=ers. Nature Of Company: Private Limited Sales Turnover: %B.,, "illion USD Production Capacity: 4arments: 2C6,,, Pieces Per Day6 Fa)ric: %2 Tons Per Day Year Estd: %DD@ No. Of Employees: *@%- Business Id Number: N.#. Products: Gnit :ear6 S;eatsirt6 "ens :ear6 Ladies :ear6 Tan= To76 T+sirts6 Fo!!in! Suit6 Polo sirt6 S7orts :ear6 S;eater6 To7s6 2ildren :ear Eport !ar"et: :est 0uro7e !ain Business #rea: !arment manufacturer Ot$er #rea of Business: manufacturer of fa)rics6 manufacturer of !arment D OUR MISSION To provide up%to%date information on t$e trade& trends and tec$nolo'ies in apparel and tetile industries& online. To provide $i'$ly efficient tools and t$e most cost effective platform as for brand promotion and ima'e buildin' for t$e tetile% apparel%fas$ion value c$ain. To provide cuttin' ed'e tec$nolo'y for en$ancement of online business and increase connectivity bet(een buyers and sellers. O)* C+#NNE,S -e offer t$e follo(in' services to apparel& fabric& accessory& mac$inery& e.uipment& yarn& fibre& dyes& trims and ot$er allied industries. Business: Eplorin' ne( / uni.ue opportunities for buyin' and sellin' of 'oods / services& most $elpful for suppliers and manufacturers. #lso you can li.uidate your ecess production& delayed s$ipments and ecess stoc" of materials. Ne(s: *i'$t information at t$e ri'$t time is very important for today0s "no(led'e driven economy. Our ne(s service ma"es t$e industry a(are of t$e policy decisions affectin' t$eir business& performance of companies& brands& and t$e latest trends and tec$nolo'y. %, 1airs and Events:#ll leadin' re'ional and 'lobal apparel& tetile and mac$inery related trade fairs events& conferences& seminars and fas$ion s$o(s (orld over are covered in t$is section and (e also provide eclusive international trade fair mar"etin' and promotion services. Corporate Objectives %. "aximi?ation of ;ealt of sareolders. 2. To increase mar=et sare *. To acieve customer satisfaction. .. "a=in! arran!ements to;ards acievin! total <uality standards. -. To !et !ro;t trou! 7rofessional mana!ement. @. To !ro;t trou! 7rofessional u7 to minimum level.. B. To control te atmos7ere )y installation of lated macinery. C. To continue to im7roveH sur7ass 7ast acievement. D. To lead te local manufactures. %,.To attain a !ood ;ord of mont and to ma=e com7any ima!e. %%.Stron!er in te international mar=et BTM is consisting of the following departments; %. "ercandisin! #rticles: Our (ell researc$ed (rite%ups provide you a "no(led'e base about t$e best practices in manufacturin'& supply c$ain& and customer relation. T$ey update you on t$e c$allen'es faced by Tetile%#pparel%1as$ion industries& 'lobally. 2irectory:-e offer t$e most compre$ensive& classified and updated information of t$e industry (it$ complete profile from around t$e 'lobe. 3obs:3ob listin' of 1ibre4fas$ion is an initiative to brin' to'et$er employers and employees on a sin'ular platform dedicated to t$e industry internationally. T$is service fulfills t$e mutual needs of employers and 5ob see"ers. %% 2. Production Plannin! E 2ontrol $PP2' *. Industrial en!ineerin! .. 7roduction i. 2uttin! ii. Stitcin! iii. Finisin! iv. 2li77in! v. Pac=in! vi. Si7ment -. Auality assurance @. Auality control B. 3uman /esource C. Information Tecnolo!y D. Procurement %,. Finance %%. For;ardin! %2. Stores %*. "ar=etin! %.. Trans7ortation %-. 2om7liance %@. :asin! Management Hierarchy in BTM Top !ana'ement %2 C$ief Eecutive Officer 6eneral !ana'er !iddle !ana'ement ,o(er ,evel !ana'ement De7artmentation %* !ana'er De7uty "ana!er #ssistant "ana!er Senior 5fficer 5fficer Su7ervisor Foreman 57erators 3el7ers De7artmentali?ation is te arran!ement of Individuals (o) activities into !rou7s and tese !rou7s are com)ined to from lar!er de7artment and units to form te total or!ani?ation Te De7artmentali?ation in Base T0ITIL0 is very clear. Tese de7artments are 3uman resources mar=etin! finance 7roduction ex7ort6 7urcasin!6 administration and <uality assurance. 0xce7t <uality assurance all de7artment are under te su7ervision. !erc$andisin' !erc$andisin' Customer Customer !erc$andiser !erc$andiser 1actory 1actory 47 !erc$andisin' 2epartment:% "ercandisin! "ana!er Sr. "ercandiser "ercandiser #ssistant "ercandiser "ana!ement Trainee !erc$andisin' performs t$e follo(in' functions !erc$andisin' performs t$e follo(in' functions "ar=et analysis "ar=et analysis Data analysis Data analysis Procurement Procurement 1isual 7resentations 1isual 7resentations Feed )ac= Feed )ac= Product 7lannin! Product 7lannin! Pricin! Pricin! Distri)ution Distri)ution "ar=et analysis "ar=et analysis includes antici7ation of future trends in te mar=et re!ardin! economic6 includes antici7ation of future trends in te mar=et re!ardin! economic6 life style6 fasion and com7etitors. 2urrently BT" antici7ates te future com7etitors li=e life style6 fasion and com7etitors. 2urrently BT" antici7ates te future com7etitors li=e 2ina and India in result of :T5 7olicies and no; successful com7etin! te cina in 2ina and India in result of :T5 7olicies and no; successful com7etin! te cina in <uality and 7rice. <uality and 7rice. %. #naly?in! all te availa)le data for im7rovement and antici7ation6 #naly?in! all te availa)le data for im7rovement and antici7ation6 "ercandiser also searc a)out te accessories 7urcase and to ne!otiate. Product "ercandiser also searc a)out te accessories 7urcase and to ne!otiate. Product 7lannin! concerns a)out sam7lin! and re!ardin! researc and develo7ment. 7lannin! concerns a)out sam7lin! and re!ardin! researc and develo7ment. Te mercandiser starts is ;or= ;it ne; in<uires6 ne; in<uires are te Te mercandiser starts is ;or= ;it ne; in<uires6 ne; in<uires are te customers first =noc= at BT". Te mercandisers increase te sale of 7roducts trou! customers first =noc= at BT". Te mercandisers increase te sale of 7roducts trou! 7ersonal sellin!6 seminars and 7ysically stall 7resentation in ;orld;ide clot fairs and 7ersonal sellin!6 seminars and 7ysically stall 7resentation in ;orld;ide clot fairs and exi)itions. But currently due to i! <uality of BT" and customers trust on BT" exi)itions. But currently due to i! <uality of BT" and customers trust on BT" <uality BT" only relyin! on 7ersonal sellin! or old customer relations. <uality BT" only relyin! on 7ersonal sellin! or old customer relations. :en ne; in<uires comes in te mercandisin! de7artment starts ;or=in! on it :en ne; in<uires comes in te mercandisin! de7artment starts ;or=in! on it on te )ases of customer demand re<uired in te in<uiry. "ercandisin! de7tt. 7re7ares on te )ases of customer demand re<uired in te in<uiry. "ercandisin! de7tt. 7re7ares sam7les. sam7les. Confirmation of PO and follo( up:% Confirmation of PO and follo( up:% #fter te conformation of P5 te mercandiser sends it to PP2 and 7roduction de7tt for #fter te conformation of P5 te mercandiser sends it to PP2 and 7roduction de7tt for 7erformin! teir functions. Te last function of mercandiser is follo; u7 of te P5 from 7erformin! teir functions. Te last function of mercandiser is follo; u7 of te P5 from sam7le to si7ment and communicates ;it te customer. sam7le to si7ment and communicates ;it te customer. Marketing Mix: Product Mix. %- 3roducts of Base Textile 1ills are cotton4 synthetic fiber yarn, knitted 4 dyed fabrics and garments. BT1 exports whole of its products to 5), 6ermany and various other country. 1a!or portion of yarn are used in manufacturing process and surplus is exported. Product Line Product Line Base Textile Mills produced different high quality export oriented products to the international market. These are as under. 7arn 8nitted abric 6arments (! (! "arn: "arn: BaseTextile 1ills 0imited produces high *uality yarn according to the demand of the market. $' to #'9 yarn is exported rest of the yarn is used is in BaseTextile 1ills. (#! $nitted %abric: (#! $nitted %abric: :ne of the largest abric facility in bangladesh having the capability to produce all kinds of knitted fabrics in "''9 cotton , blends. %@ &ar'ents &ar'ents: BT1 is a leading apparel company having expertise , machinery capable of transforming customer ideas into superior *uality garments, which are taken as the most famous brands in the world. )ingle knit lat knit )trippers )ingle ;ersey 3i*ue leece <ollar , <uffs lat 8nit 3anels eed )triper Auto )triper .ngineered )triper +ouble knit Textures ;ac*uards "x" =ib >ariegated =ib /nterlock ?erring Bones 3i*ue ;ersey -affles 1ini ;ac*uard Thermals %B These includes the Lounge(ear )ports(ear *ctive (ear )+eep(ear *th+etic ,nder(ear Physica+ -istribution: BT1 exports its products through two different marketing channels. -irect Marketing .hanne+s: BT1 directly contact with its customers through mail, telephone, and personal contacts and sell its products directly to the ultimately buyers. Indirect Marketing .hanne+s: :en it comes to indirect mar=etin! cannel6 distri)ution is made trou! intermediaries. BT" ex7orts its 7roducts trou! many a!ents in some cases. BT1 is using different channels of transportation for the distribution of its products like, ships, airship etc. Countries of Eport: BT1 is making a good effort to increase the market share. Today company is exporting its products to many countries like, %C o 5)A. o ?ong 8ong o ;apan o 6ermany o 1alaysia o )ingapore o 8orea o Thailand "a(or ex7ort of BT" is made trou! telle+mail services. "any contracts are settled trou! 7ersonal sittin!. BT" do not ;aste any cance to 7romote its 7roduct. BT" 7artici7ate in various exi)itions tat ta=e 7lace under ex7ort 7romotion )ureau in different areas of te ;orlds. BT" also ta=e 7art in ;orld trade so; for 7romotin! its 7roducts. It also sends many sam7les to its 7otential customer. Promotion is one of te four ma(or im7ortant elements. Te main 7romotion tools are advertisin! and oter country )usiness relationsi7. Te BT" sould advertise its 7roducts not only in te ;orldJs trade ma!a?ine also in national industry ma!a?ine. Te com7any as to decide o; to set te 7romotion )ud!et. Te a77ro7riate )ud!et a77roac is to send te com7any can afford ;it res7ect to its funds and 7roduct. Production/ P+anning and .ontro+ (PP.! Production/ P+anning and .ontro+ (PP.! 3romotional Activities: %D 1erchandising 3roduction 33< 33< works as a bridge between merchandising and production. /t stands 3roduction planning and <ontrol. /n this department the works starts when new in*uire converted into purchasing order. The merchandiser sends to 33< department which starts work on it. %unctions of PP.: :ptimization of resources @man, machine, materialA <osting research and development@=,+A 3urchase order receiving <apacity Time line @time, actionA abric accessories @stitching and packingA abric demand plan @lead timeA Accessories demand plan .osting
This is the most important responsibilities of 33< department ./t is responsible for accurate costing of production. The price of the single accessory can2t be ignored .:n the basis of cost, given by 33<, merchandiser negotiates with the customer. This is crucial point in getting the purchase order @3:A The main things that are taken into account during costing and pricing of product are as follows.
": abric <ost @7arn +ying and 8nittingA 2,
&: )titching <ost
(: 3acking and Accessory <ost B: :verhead inancial <harges %: 1argin and =e!ection C: reight on Board PP. Profi+e:
A 33< profile is prepared which contains all the specifications that has been demanded by customer and distributed to all the concerned departments in which whole execution of order is done. ollowing points are included in this profile.
": 3urchase :rder
&: Buyer Dame (: +escription B: Euality %: <olor and size Breakdown C: Time 0ine F: )ize <hart and cutting +esign $: 3acking 3rogram 33< department have two types of planning regarding production 2% "A 1artial planning &A 5nit planning or time line , machine planning Martia+ p+anning 1artial planning includes, aA abric planning bA Accessories planning %abric p+anning .ach purchasing order has its own demand about fabric. .ach purchasing order has its own product package. 3ro!ect package means every purchasing order has a different @6)1A gram per s*uire meter. there is a slight margin in 6)1, which is allowed by the customer due to shrinkage effect, it is up to %9. abric planning also includes that what type of cotton re*uires for producing this fabric. /n fabric planning color and size brake down has another important functionG when purchasing order receives it has its on re*uirement of color and size. The department has check weather this type of dying facility has available in BT1 mills or it re*uires some out sourcing. Then 33< department informs the mills what size sheet is more efficient for this purchasing order. -hat type and gage size is re*uired for this fabricH -eather this size of sheet length is suitable for this order or not. 22 33< also plans for marker making @most precise size for different parts cutted from lay sheetA. +epartment plans the size of sheet which has minimum wastages during cutting There are two types of wastages from sheet. Big wastage )mall wastage $%9 out put are re*uired from the sheet. The fashion body part has less efficiency as compare to simple wear. 33< department also concern a different sizes of a shirt e.g. large, small, extra, large, and medium. ?ow many *uantities of each size re*uired by the customer and how much sheets size is more efficient for each size. 33< transforms all these information to mills for fabric. *ccessories p+anning )titching 3ackaging )titching accessories planning includes thread, buttons, labels, or any thing extra is customer2s wants to attach with the shirt. )ome time customer2s gives some instruction cards attach with the shirt. /n packaging accessories all the martial includes which will used in packaging e.g. =appers, paper packaging. 33< plans about accessories are forward to procurement deptt. -hich have responsible to purchase these accessories. )ome times 2* customer sends these accessories or some part of accessories to 1T1. /t may possible that customer may indicate or bond BT1 management to purchase these accessories from specific buying house. /f customers not suggests then procurement deptt. 3urchase it from open market. ,nit p+anning or ti'e +ine 0 'achine p+anning /t includes the capacity and no of machine re*uired for a specific purchasing order. or the specific purchasing order 33< cooperates with industrial engineering departments. or example, for a purchasing order of polo shirt, 33< send the sample of shirt to trial room where the expert stitches stitch this shirt and finds out how much time re*uire for each stitch. /n trial room there are different levels of stitches performing this activity so that it2s near to reality. According to this time line for specific stitch 33< plans how many no of machines and stitches re*uired for this shirt and for each specific operations like collar stitch, collar attach, button attach how many machines are re*uired to speedy flow in production. According to this time line 33< department give shipment date to both merchandiser and production department. 2. Production depart'ent
-e believe that prevention is better than cure. +uring the process of stitching we have inline inspection and final inspection processes. The garments are "''9 inspected by highly experienced inspectors. :ur ob!ective is to produce with Iero +efects. The JBA<8 T=A<8/D6 )7)T.12 plays a vital role in developing sense of responsibility and accountability in every person in making and inspecting the garments. The same thing is emphasized in /):K #''&, so we are not only the /):K#''& <ertified holder but also the true executors. The company has independent Euality Assurance Team that conducts inline audits and final finished goods audits. The EA. 1anager ensures that before the goods leave the factory, they comply with the customer2s AE0 standard. ollowings are the stepwise operations, which are followed by the production department /n the first step when a new 3L: is going to be produced then production planning and control department forward a ppc file to the production department. /n second step industrial engineering department calculates the standard allowed minutes for a particular function such as collar attachments. 2- After the above two steps production department will design the flow of garment. Then fabric will cut in the cutting department . After cutting induction will b moved to the allotted units. )titching of the garments will be done in the units. <lipping is done after stitching .pressing inal /nspection )uper final /nspection 3acking /nternal audit .xternal audit .xKfactories 1ypes of %abric: A material made from fibers or threads by spinning, weavings, knitting, processingMetc as any cloth. There are different types of fabrics. 1ypes of %abric: 2ersey Pi3ue Inter Lock Rib 4aff+e 2@ Min 1her'a+ %+eece Euality <ontrol Euality is a standard achieved by processes to render a defect free product to the customer. Euality control is a system implemented to make these processes successful. +ifferent *uality control systems are as follow eeding inspection )even to zero system Traffic control system % part ticket system <lipping /nspection .nd line inspection 2B inal inspection )pecs inspection 3resentation inspection 3acking inspection *ole of 8uality Control: % In 7arallel to cuttin! <uality control ;or=s. Tere are in line su7ervisor in cuttin! de7artment ;o audits te )undles. "atc moc=+u7s and find faults. Tey count te 7ieces6 %,,K 7ieces are counted and 2,K 7ieces are audit. If te 7ieces are not u7 to te s7ecifications tey are re(ected. If te 7ieces are 5= tey are a77roved and send to induction de7artment. iii7 ,aboratory Tests for 1abric 8uality: % 2ertain la) tests are used in BT" for te cec=in! of fa)ric <uality. Tese are follo;in!: + i' Srin=a!e Test ii' 4.S.". Tests iii' :idt Stretc Test. iv' P3 scale Test v' 2roo=in! Test. vi' Bleedin! Test vii' Scorcin! Test viii' 3ot :et Press Test ix' 2otton Polyester Test Aualified fa)ric s7ecialists in a la) do tese tests. 8uality #ssurance 2epartment:% Auality #ssurance "ana!er 2C De7uty "ana!er Auality #ssurance #ssistant "ana!er Auality #ssurance Auality #ssurance 5fficer Auality #ssurance #uditors "ana!ement Trainee !ain Ob5ective of 8uality #ssurance 2epartment:% Te main o)(ective of te <uality assurance de7artments is to ensure te <uality of finised 7roducts accordin! to te customerJs s7ecification. i7 *ole of 8uality #ssurance Auality assurance de7artmentJs first res7onsi)ility is to cec= te <uality of finised 7roducts. For tis 7ur7ose <uality audit is conducted. In ;ic te finised !arments are cec=ed accordin! to customers P.5. Fa)ric. Auality6 2olor6 Si?es6 #ccessories6 0m)roidery6 Stitcin! Auality every tin! is cec=ed )y Auality #ssurance De7artment. If every tin! is 5G ten te si7ment is a77roval oter;ise it is re(ected. Because <uality 7olicy of "T" is to satisfy customer at every cost. :ile auditin! finised !oods A.# 5fficer also cec=s te measurements of te !arments and tallies tem ;it standard measurements for te res7ective si?es. In final ins7ection te officer ave a standard fault form. 3e cec=s te !arment and find faults. If te fault ratio is more ten 2.-K e re(ected te 7iece. In tat form descri7tion of faults are mentioned. A.# de7artment ensures tat %,, K <uality is 2D maintained. Beside <uality audit Auality #ssurance de7artment evaluate te 7erformance for te In+line ins7ectors and final ins7ectors. 5n tese evaluations teir 7ays and )onuses are allocated. Te de7artment also !ives cas a;ards to )est 7erformers. #nd a <uality tro7y is also !iven to )est unit. 1or(ardin' 2epartment: 5r!ani?e te safe and efficient movement of !oods trou! different mode of trans7ortation. :e use te most effective and economical metods of trans7ort for !oods tat mi!t )e te services of si77in! lines6 airlines or road and rail frei!t o7erators. Te for;ardin! de7artment 7lay very im7ortant role for si7ment of !arment to various countries ;it usin! of many documentation. Tey use container to transfer of !arments li=e 2,ft6 .,ft and ., ft 32. Tey use te follo;in! formulas to calculate te 2B". *, L L : L 3H @%,2* L No. of cotton For air. L L : L 3H *@@ L No. of cotton LMlen!t :M;idt 3Mei!t 1unctions of for(ardin'. /esearc and 7lannin! of a77ro7riate route for si7ment 5)tainin!6 cec=in! and 7re7arin! documentation to meet customs and insurance re<uirements. #rran!in! air trans7ort for ur!ent )asis. :or=in! closely ;it customer and tird 7arties to insure smoot o7erations to deadlines. "aintainin! current =no;led!e of relevant le!islation6 7olitical situation and oter factors tat could )e affected. Transmittin! data )y internet and tracin! of si7ment !ode of transportation : /oad trans7ortation *% /ail trans7ortation #ir trans7ortation Sea trans7ortation 2ouments: Bill of leadin' # document tat esta)lises te terms of a contract )et;een a si77er and trans7ortation com7any. Te follo;in! eads includesN o Si77er name o 2onsi!nee o Notify 7arty o 0x7ort reference num)ers o #!entJs name o 1essel num)er o Port of discar!e o Place of delivery o Final destination o Descri7tion of !oods #ir (ay bill9 #n air ;ay )ill is a documentary 7roof of te contract of carria!e )et;een te si77er and te carrier. It includes te follo;in! eads o Su77lier name o 2onsi!nee o Form ex7ort num)er *2 o Invoice num)er o Notify 7arty o #ir7ort of discar!e o #ir7ort of recei7t o #ir7ort of loadin! o Descri7tion of !oods o 4ross Hnet ;ei!t o L.2 num)er Commercial invoice: Te commercial invoice made )y te for;ardin! de7artment ;ic !o to te )uyer of 7roducts. It includes te follo;in! eads o Invoice num)er o Si77er name o 2onsi!nee name o Notify 7arty o #!ents name o 0x7ort re!istration num)er o Payments terms o Discretion of !oods Procurements department : It is te ac<uisition of !oods and services at te )est 7ossi)le cost of o;nersi7 in te ri!t <uantity at te ri!t time in te ri!t 7lace for te direct )enefits of te or!ani?ation. ** 1unctions of procurement department. %+ /eceive PP2 seet from store 2+ Ta=e ac<uisition *+ Price ne!otiation .+ 5rder 7lace -+ Si7ment of !oods @+ Time line B+ Follo; u7 tools C+ I4PE4/N D+ #ccessories a. Payments of 7urcased !oods /ndustrial engineering is that branch of engineering, which deals with the 3roductivity increases the using all the available resources. These resources are following. /. 1en //. 1aterials ///. 1oney />. 1achine >. 1ethods >/. )ystems >//. 0and4space /ndustrial engineering provides us a systematic @step by stepA organized way of increasing productivity using simple techni*ues. Productivity: /t is defined as the ratio of output and input i.e. 3roductivity N :utput 4 /nput *. *- *@ C$apter: : 1indin's and analysis *B 1inance 2epartment Finance is art of science of mana!in! money. Base textile mills ave a (oint financeH accounts de7artment. #s te com7lexity and si?e of te or!ani?ations6 te finance de7artment of BT" totally com7uteri?ed to record te transactions6 instead of recordin! manually. Te finance de7artment of te BT" a77arel division is connected ;it te L#N. Tus te BT" is =ee7in! te clerical cast s lo; to increase te efficiency of 7rocessin! transact Finance de7artment as ma(or old in Base Textile mills. Tis de7artment 7lays an im7ortant role in any 7ro(ect investment6 7roduct analysis and its )ud!etin!. Tis de7artment also 7erforms investment decisions and asset mana!ement decision functions. 3o; te ;or=in! ca7ital mana!ed. 3o; de)t is used in asset mana!ement. 3o; and ;en te lia)ilities are to )e 7aid. :at are te acievements of te or!ani?ation )y im7lementin! decisionsO Past financial decisions are revie;ed and im7osed ;it ne; trends and re<uirements. Te function 7erformed )y te finance de7artment is to collect and raise funds ;it te varyin! demands of BT" Funds are created trou! loans or )y issuin! sare of te or!ani?ation. Tis de7artment also ma=es financial analysisN cas flo; and 7rofit and loss account finance de7artment is eaded )y director finance mana!er is mar=ed. Under tere 7ersonal6 many su)+ordinates are ;or=er li=e account officers and assistant account officers. *C Structure of 1inance 2epartment Finance Manager -eputy Manager *ccounts -eputy Manager %inance #ssistant "ana!er #ccounts #ssistant "ana!er Finance #ccounts 5fficer Sales Tax 5fficer Finance 5fficer Te main o)(ective of finance de7artment of BT" is to mana!e finance in suc a ;ay tat maximum out7ut is ta=en )y minimum in7ut. BT"Js financial administration is very strict in !ivin! information. 2om7any rules are very strict for it. Follo;in! are te main functions of finance de7artment. i7 1inancial !ana'ement It deals ;it te cas inflo;s and outflo;s ma(or cas inflo;s are follo;in!. Sales 2ollection Interest of De7osits Sales of :astes 2a7ital 4ains *D "a(or sources of cas outflo; are:+ Purcase of ra; materials. Purcase of 7ac=in! materials. Purcase of fuels. :a!es and Salaries Payments. Duties and Taxes. ii7 Boo" ;eepin' BT" as se7arate accounts division for )oo= =ee7in!. Te main function of )oo= =ee7in! is to record te )usiness transaction in a set of )oo=s of accounts. Daily Payments and recei7ts entries are recorded in ori!inal )oo= of entries. Su)sidiary led!ers are used to maintain de)it and credit account. "ain led!er is 7re7ared for daily (ournal entries and montly trial )alance is dra;n trou! it. #t te end of te year annual accounts ave )een 7re7ared. iii7 Pay *oll In tis section attendance record is maintained 0PS $0m7loyees Payroll System' 7re7are te 7ay accordin! to com7any rules. 1unction of finance. o Pre7aration of financial statement o Internal control o 2onduct of audit ., o 2om7arison o 5rder ;ise 7rofit and loss account and teir analysis o 2ec=in! of ;a!er and salary o Procurement )ills o Purcase )ills o 4/N o I.T )ills o "acine )ills o Dyein! o #llo;ances o 5vertime o 05BI o 4ratuity o "arria!e and deat o 0xtra 7ayment o Local sale /is= mana!ement 7olicies Te 2om7any issues financial instrument mainly to ac<uire finance to its o7erations. Te com7any issues financial instrument suc as trade de)ts and trade creditors arise directly forms te com7anyPs o7eration. 5verall ris= arisin! from te com7anyJs financial instruments is limited. Interest rate ris= Forei!n excan!e ris= mana!ement credit ris= Fair value of financial assets and lia)ilities .% Strengths and wea&nesses of finane department Stren!ts Friendly ;or= environment 3ire &oun! staff Use of mana!ement system -ea"ness 'a& of awareness about emplo(ee Misuse of )etwor& Punctuality 'a& of oordination between emplo(ee .2 /DAD</A0 ADA07)/) Te financial analysis of te com7any 7resents us te true 7icture of te com7any and its 7erformance re!ardin! te utili?ation of resources6 ;ort and its 7rofita)ility. Usually tere are tree ty7es of financial analysis in ;ic one analysis te financial statements of te com7any mostly Balance Seet #nalysis and Income Statement #nalysis. Follo;in! are te tree ty7es of analysis: 1ertical #nalysis 3ori?ontal #nalysis /atio #nalysis Q
.* Base Textile "ills LTD ProfitE loss #ccount 3ori?ontal analysis -escription 2an!es 2,%,+ 2,,D K 2an!es 2,,C+ 2,,B K Sale 2ast of 4oods sold 4ross Profit #dmin. Sellin!E 4eneral ex7enses 57eratin! 7rofit
5ter income Financial can!es :or=erJ 7artici7ation Fund /s $,,,' *.@6%,D *%26%BD %%.-% %2.D2 /s.$,,,' $D.D@@' $%,B6-%. ' $-..B' $C.,,' **6D*, 2CDC -.B* ,.C2 %26-.C %26@C. *.2, @.*. *%,*2 2,B %2.D- D.%2 $%*@' $D,.' $,.,B' $**.%D' *%62*D *@@@D $2B*' %2.D2 *,.BD $...*' $%,.,' @,-, $*-D' ,.-* B.D@ $@.,%' .. Profit )efore taxation Provion for taxation *@*D@ $-%-B' -,D@ 2D.,@ $...2' 2%..* -@D% $@B*%' C2C -.D. $-.D. ' Profit after taxation %,62-* $%%.,.' $B6--D' $B.B-' .- Base Textile "ills LTD ProfitE loss #ccount 3ori?ontal analysis Descri7tion 2,%,K 2,,DK 2,,CK 2,,BK Sale 2ast of !oods sold 4ross Profit #dmin.sellin!E !eneral ex7. 57eratin! 7rofit 5ter income Financial car!es :or=erJs 7artici7ation fund Profit )efore taxation Provion for taxation %,, C%.*2 %,, C,.*% %,, B-.*. %,, BB..% %C.@B %,.@, %D.@D %%.B* 2..@@ %2.D- 22.-D %%.-% C.,B ,.,C B.DB ,.,C %%.B% ,.%% %%.,C ,.%@ C.%. ..@. ,.%C ..C2 *.*2 ,.C@ C.,. *.D@ ,.2, ..%@ *.CB ,.BD %%.C2 -.,, ,.*. -.*. @..D %.,% %%.2. ..*C ,.*. ..B2 @.-2 ,.D% Profit after tax 2.%@ *.,D -..C -.@2 .@ Base Textile "ills LTD $3ori?ontal analysis' .B Descri7tion 2an!es 2,,D+%, K 2an!es 2,,C+,B K E.uity and ,iabilities: 2a7ital stoc= /eserves Una77ro7riated 7rofit Sur7lus on revelation of o7eratin! fixed assets Deferred income on sale and lease Bac= of o7eratin! fixed assets None current Lia)ilities Lon! term finances Lon! term loans Lia)ilities a!ainst assets su)(ect to Finance lease Deferred lia)ility for !ratuity 2urrent lia)ilities: 2urrent 7rotion of lon! term Lia)ilities Sart term financin! 2reditors and oter lia)ilities :or=er 6s 7artici7ations fund Provion for taxation Pro7osed dividend to minority Sare olders Unclaimed dividend /s in $,,,' %,,6,,, %,,6,,, D-6%@D -, .@.@2 -C2.%% @C.-% B.%B 2C.22 B*.2@ $2%.2D' 2*.%% @2.2% %*.D- -,.%. %D.B% 2.D. $....' *-.C, *BD.-. *2B.@. %B.@C /s.$,,,' -,,, D,6*2, $2-.@.' %,-.,. @*.D% ,.,% 2,.,-' $2,.,-' $2,.%.' *2D.*@ .,.D% B.C. B-.*D 2,.*D 2,.DC %.%2 @.,%' $@.,*' .-.B% %-.%@ 2D-6%@D $%26--*' $2%B' CC6*.C $@-6%,%' -B6CBC %B6%2@ DC62-% @C6*C* *,B6.-- %-6@,C $%*6B*%' %B6C,C 2*,, .,26-%2 C-6*2, $*%' $2@*' $2@6-B%' -%6C,% @.-* *%@C* 2-6B,, CC6@B@ 2CB@ $*-D' $26,@-' %.. %%.6DB2 Total e<uity lia)ility BC*6%@ 2 2%.C * 2*%6@C% %...B .C
Base Textile "ills LTD Balance Seet #ccount .D 1ertical analysis Descri7tion 2,%, 2,,D 2,,C 2,,B #ssets Non current assets: Tan!i)le #ssets: 57eratin! fixed assets #ssets su)(ect to finance lease 2a7ital ;or= in 7ro!ress Lon! term advances6 de7osits and deferred 2urrent #ssets: Store and s7are 7arts Stoc= in trade Tread d)ts #dvances6 de7osits6 7re7ayments 2as and )an= )alances 2-.2- %,.2- ,.2B *-.BB %.-- *B.*2 ..B2 2D.@% %@.%B %%.*, ,.CD @2.@D 2*.C. C.2C *.%D *-.*, *.2, *C.-, -.2B 2-.,B %D.-D %%.*% ,.2B @%.-, *C.. -.2* %.,* , ...@@ . .C.D, ..B- %@.B2 %2..B %@.,2 %.%* -%.%, .B.-% %.*C ,.%- .D.,* ..BB ..BB -*.C, *.D2 C.C* %C.%@ %..*- ,.D. .@.2% -, Total #ssets %,, %,, %,, %%,RR%,, Base Tetile !ills ,T2 Descri7tion 2,%, 2,,D 2,,C 2,,B E.uity and ,iabilities: 2a7ital stoc= /eserves Una77ro7riated 7rofit Sur7lus on revelation of o7eratin! fixed assets Deferred income on sale and lease Bac= of o7eratin! fixed assets None current Lia)ilites Lon! term finances Lon! term loans Lia)ilites a!ainst assets su)(ect to Finance lease Deferred lia)ility for !ratuity 2urrent lia)ilities: 2urrent 7rotion of lon! term Lia)ilities Sart term financin! 2reditors and oter lia)ilities :or=er 6s 7artici7ations fund Provion for textation Pro7osed dividend to minority Sare olders Unclaimed dividend @.C@ B.2, 2.-- %@.@% *.B2 ,.,% ..BC -.-% B.,@ %.,2 %C.*B ..@D .2.B2 %2..D ,.%* %.%D ,.,B @%.2D -.-B -.DC ,..@ %2.,% ..CC ,.,2 *.*@ C.-* @.DC ,.BB %D.@. *.C, .*..C %..BC ,.%B %.,B ,.%* ,.,2 @*..- %,.D% ,.BD ,.2B %%.D. %@.@, ,.,@ -.B- %*.%* *.@C %.22 2*.BC *.2@ 2B.D, %..%* ,.*% %.B@ ,.2@ ,.,* .B.@* %2..D %.22 -.*B C.*. %D.,, ,.,C C.2. %-.,* ,.DC ,.DD 2-.2. 2.%* 2@.., %@.,, ,.*B 2.%. ,.2D ,.,2 .B.*- T5T#L e<uity and lia)ility %,, %,, %,, %,, -% /atio analysis. -2 /atio analysis is very useful a77roac to =ee7 te mana!ement 6 sareolder and creditors in ma=in! various de.cisions a)out com7any. For analysis of te financial statement ratios can )e classified as follo;s. %. Li<uidity ratios 2. Profita)ility ratios *. #ctivity ratio .. Solvency ratio Te ratios measure te sort term a)ility of te com7any to 7ay its current sout+term lia)ilities. % Li<uidity ratio 2 2U//0NT /#TI5 * AUI2G /#TI5 <. Current ratio. 2urrent assetsH current lia)ilities 2,%, 2,,D 2,,C 2,,B %.,2*:% .D@D:% %.,B2:% .DB@:% 2. 8uic" ratio. 2,%, 2,,D 2,,C 2,,B .-*D:% .-B.:% .B22:% .BCD:% ,i.uidity ratio: Te li<uidity ratio measured )y te current assets over current lia)ilities. Te com7any 7erformance to meet teir current o)li!ation form teir current assets. Te com7any ave increasin! trend in current ratio in 2,,. as com7ared to 2,,* due to decrease in sort term lia)ilities. Te <uic= ratios of te com7any continuously decrease due to increase in stoc= trade ;it is unfavora)le trend. -* Profitability ratio. Te 7rofita)ility ratio measure te income and o7eration success or overall 7erformance of te com7any for a 7articular 7eriod of time. %. 4ross 7rofit ratio 2. 57eratin! 7rofit ratio *. Net 7rofit ratio <. 6ross profit ratio. 4ross 7rofitHNet sale x %,, 2,%, 2,,D 2,,C 2,,B %C.@BK %D.@DK 2..@@K 22.-DK 2omments: # i! !ross 7rofit mar!in ratio is a si!n of !ood mana!ement. 0very firm sould try to increase its !ross 7rofit as muc as 7ossi)le. :e can see tat te )an= as a i!er !ross 7rofit mar!in. It is a very !ood si!n of )usiness. 2. Operatin' profit ratio. Operatin' profit=Net sale <>> 2,%, 2,,D 2,,C 2,,B C.,BK B.D@K %%.B%K %%.,CK 2omments: 57eratin! 7rofits are 8Pure9 )ecause tey measure only te 7rofits earned on o7erations and i!nore interest and taxes. # i! o7eratin! 7rofit is 7referred. Te o7eratin! 7rofit of tis )an= is )etter. So6 it is recommended. -. ?. Net profit ratio.
Net 7rofitH net sale x %,, 2,%, 2,,D 2,,C 2,,B 2..@K *.,DK -..CK -.@2K 2omments: Te net 7rofit mar!in is a commonly cited measure of te firmJs success ;it res7ect to earnin!s on sales. Net 7rofit )encmar= is %,K+ %-K re<uired. *@.*@ K return on sales is considered as a satisfactory level. Profitability ratio. Profita)ility analysis so;s tat com7any !ross 7rofit continuously decrease from 2,,% to 2,,. . Tere is little )it increase in o7eratin! income in 2,,. as com7ared to 2,,* ;ile tere is continuously decrease in net income. So com7anyJs overall 7erformance is unsatisfactory. #ctivity ratio. %. Total assets turnover. 2. SaleH total assets -- 2,%, 2,,D 2,,C 2,,B ,.BB ,.C. ,.CD %.,C #ctivity ratio. Te total assets turnover analysis so;s tat tere is continuously decrease in assets turnover ratio )ecause increase in total assets is 2%.C*K ;ile tey increase in sale is %%.-2K from 2,,* to 2,. ;ic so;s tat te K of assets is !reater ten sale K. "ana!ement does not ;or= ;ill and sould ta=e immediate ste7 for te im7rovement of sales. Solvency ratio. Tese ratios measure te a)ility of te com7any to survive over a lon! 7eriod of time. %. De)t ratio. ,on' sort term liabilities = Total assets x%,, 2,%, 2,,D 2,,C 2,,B BD.@@K C*.,DK B%..%K B2.-CK 2. De)t to e<uity ratio. 2,%, 2,,D 2,,C 2,,B %..-@K %B.D*K D.%@K C.,,K Solvency ratio. Te solvency analysis as to do ;it testin! te or!ani?ation a)ility to meet te lia)ilities and remain solvent. Te solvency of Base textile so;s tat te or!ani?ation total lia)ilities are !reater ten te e<uity of te com7any o;ever te assets of te com7any are !reater ten te lia)ilities ;ic descri)e tat in te lon! run te firm is <uite solvent. But com7any sould avoid )orro;in! more loans. -@ Cas$ Turnover *atio: M 2.4.S+ De7reciationH2as 2,%, @C.22 2,,D 2.-.@, 2,,C -B.*. ,i.uidity #nalysis: Te li<uidity of a )usiness firm is measured )y its a)ility to satisfy its sort+term o)li!ations as tey come due. Li<uidity refers to te solvency of te firms overall financial 7osition. Te com7any is !ood li<uidity 7osition as com7ared to 7revious year 2,,*6 )ecause in 2,%,6 te com7any as sufficient net ;or=in! ca7ital. 2as ratio also so;s tat com7any is in a 7osition to meet its sort+term o)li!ation. Inventory to net (or"in' capital: Inventory H 2urrent #ssets+ 2urrent lia)ilities 2,%, 2%.2- 2,,D %2.C* 2,,C ..C* Indicate tat 7ercenta!e of Net :or=in! 2a7ital is in inventory. Tis result may )e considered 7ositive or ne!ative6 de7endin! on te industry standard for com7anies of similar si?e and activity. # ne!ative value is a si!n tat te com7any may ave difficulties meetin! sort+term financial o)li!ations. Net -or"in' Capital: M 2urrent assets+2urrent Lia)ilities 2,%, /s. @,6CB26,,, 2,,D /s. $B,6,C.6,,,' 2,,D /s.@*6-,B6,,, -B Cas$ *atio: 2as S "ar=eta)le SecuritiesH2urrent Lia)ilities x %,, 2,%, %.-@K 2,,D ,.D-K 2,,C 2.@%K 2ividend Payout *atio: 2as dividend H Net income x%,, 2,%, 2.D,K 2,,D ..BDK 2,,C -.,-K 2ividend #nalysis: Dividend Pay out ratio so;s te relation of dividend in res7ect of net income. #s te net income of te com7any is continuously decreasin! so te dividend 7ay out ratio also so;s te decreasin! trend. Profitability analysis: Profita)ility analysis measures or evaluated te firms earnin! ;it res7ect to a !iven level of sales a certain level of assets te o;nerJs investment or sare value. :itout 7rofits a firm could not attract outside ca7ital. 5;ners6 creditors6 and mana!ement 7ay close attention to )oostin! 7rofits due to te !reat im7ortance 7laced on earnin! in te mar=et lace. #ll 7rofita)ility ratios calculated a)ove so; te decreasin! trend so it is concluded tat 7rofita)ility of te com7any is unfavora)le. 2ays to collect avera'e receivable: Days in a yearH/eceiva)le turnover rate 2,%, B@ days 2,,D C. days 2,,C -, days -C Operatin' Cycle: Days to sell inventory S Days to collect receiva)le 2,%, 2.B days 2,,D 2%C days 2,,C %*Ddays #ctivity #nalysis: Te total assets turnover analysis so;s tat tere is continuously decrease in assets turnover ratio )ecause increase in total assets is 2%.C*K ;ile te increase in sales %%.-2K from 2,,* to 2,,.6 ;ic so;s tat te K of assets is !reater6 ten sale K. Inventory turnover ratio is decreasin!6 ;ic so;s te less s7eed of inventory convertin! into cost of !oods sold. Te days to sell te avera!e inventory are increasin!. Te receiva)le turnover rate is also decreasin!. Days to collect avera!e accounts receiva)le are increasin! as com7ared to 7revious years.#ll activity ratios so; unfavora)le trends. Sale per employee: M Sale for te year H #vera!e no. of em7loyees 2,%, /s. C.@6.., 2,,D /s. D2C6.DC 2,,C /s6 @%D6-@@ Indicate te a77roximate value of sales !enerated 7er em7loyee for te year. Tis result can )e considered 7ositive or ne!ative de7endin! on te industry standard for com7anies of similar si?e and activity and te costs attri)uted to ma=in! te sales. 1ied assets utili@ation: M Net sale H Fixed assets -D 2,%, *.,* 2,,D *.-2 2,,C 2.** Fixed assets utili?ation ratio so;s te net income in relation to fixed assets. /atio so;s te decreasin! trend in 2,,. as com7ared to 2,,* ;ic so;s tat com7any not utili?in! its fixed assets 7ro7erly Net income as a percenta'e of net sale: M Net income HTotal sale x%,, 2,%, 2..@K 2,,D *.,DK 2,,C -..CK *eturn on total assets: Net 7rofit after tax H Total assets x%,, 2,%, %.CDK 2,,D 2.-DK 2,,C ..D%K !easure of profitability: *eturn on e.uity. M Net income H avera!e total e<uity 2,%, %%.*CK 2,,D 2%.--K 2,,C .%.%*K Earnin' per s$are: M Net income+7referred dividendsH#vera!e No. of common sares 2,%, /s. 2.B- 7er sare 2,,D /s. ..@. 7er sare 2,,C /s. ..-, 7er sare @, #naly@in' #ctivity: %. Inventory turnover ratio 2. Days to sell te avera!e inventory *. /eceiva)le turnover rate .. Days to collect te avera!e receiva)le -. 57eratin! cycle Inventory turnover ratio: M 2ost of !oods sold H inventory 2,%, 2.%% times 2,,D 2.@D times 2,,C ..,. times 2ays to sell t$e avera'e inventory: M Days in a year H Inventory turnover 2,%, %B% days 2,,D %*. days 2,,C CD days #ccount receivable turnover rate: M Net sale H #vera!e account receiva)le 2,%, ..B- times 2,,D ..2C times 2,,C B.%D time Operatin' epenses ratio: M 57eratin! ex7enses H Net sale x %,, 2,%, %,.@,K 2,,D %%.B*K 2,,C %2.D-K Price=earnin' ratio: @% M "ar=et 7rice 7er sare of common stoc= H 0PS 2,%, /s. *.@. 2,,D /s. 2.%@ 2,,C /s. 2.22 Interest covera'e ratio: M 57eratin! income H #nnual interest ex7ense 2,%, %.B.:% 2,,D 2.,%:% 2,,C 2.*.:% Te interest covera!e ratio so;s te decreasin! trend to meet te financial car!es. Because com7any ac<uire more loans so its annual interest ex7enses is increasin! as com7ared to teir 7rofita)ility. 2ebt to assets ratio: M Total lia)ilities H 2urrent SFixed assets x %,, 2,%, %%*.B2K 2,,D %%B.%CK 2,,C %%%.B*K De)t to assets ratio so;s te favora)le trend in 2,%, as com7ared to 2,,D ;ic so;s te lia)ilities are decreasin! in relation to current and fixed assets of te com7any. @2 PEST #N#,YSIS It is very im7ortant tat an or!ani?ation considers its environment )efore )e!innin! te mar=etin! 7rocess. In fact6 environmental analysis sould )e continuous and feed all as7ects of 7lannin!. Te or!ani?ationTs mar=etin! environment is made u7 from: Te internal environment e.!. Staff $or internal customers'6 office tecnolo!y6 ;a!es and finance6 etc. Te micro+environment e.!. our external customers6 a!ents and distri)utors6 su77liers6 our com7etitors6 etc. Te macro+environment e.!. Political $and le!al' forces6 0conomic forces6 Socio cultural forces6 and Tecnolo!ical forces. Tese are =no;n as PEST factors. PO,ITIC#, 1#CTO*S Te 7olitical arena as a u!e influence u7on te re!ulation of )usinesses6 and te s7endin! 7o;er of consumers and oter )usinesses. &ou must consider issues suc as: 3o; sta)le is te 7olitical environmentO :ill !overnment 7olicy influence la;s tat re!ulate or tax your )usinessO :at is te !overnmentTs 7osition on mar=etin! eticsO :at is te !overnmentTs 7olicy on te economyO @* Does te !overnment ave a vie; on culture and reli!ionO Te 7olitical situation of Pa=istan is not satisfactory and unsta)le. /a7id can!e in te 4ovt. and te can!e of te 7olicies of te 7revious !ovt. )y te ne; !ovt. a)ru7tly effect te Pa=istanJs 7olitical situation. Due to tese entire factors te forei!n investor esitates to invest in Pa=istan. 4ovt. sould device suc 7olicies tat are )eneficial for te local ex7orter as ;ell as for te investors. 025N5"I2 F#2T5/S "ar=eters need to consider te state of a tradin! economy in te sort and lon!+terms. Tis is es7ecially true ;en 7lannin! for international mar=etin!. &ou need to loo= at: Interest rates Te level of inflation 0m7loyment level 7er ca7ita Lon!+term 7ros7ects for te economy 4ross Domestic Product $4DP' 7er ca7ita6 and so on Te economic condition of Pa=istan is not suita)le for investment. "ar=et !ro;t rate is very lo; and ne; investors esitate to invest. Increasin! inflation rate due to eavy loan ma=e te )usiness environment strict. #ctually increase in inflation rate leads to i! cost of 7roduction so our country 7roducts sell out at a i! 7rice )ut ;it lo; mar!in. SOCI#, 1#CTO*S Te social and cultural influences on )usiness vary from country to country. It is very im7ortant tat suc factors are considered. Factors include: :at is te dominant reli!ionO :at are attitudes to forei!n 7roducts and servicesO Does lan!ua!e im7act u7on te diffusion of 7roducts onto mar=etsO 3o; muc time do consumers ave for leisureO @. :at are te roles of men and ;omen ;itin societyO 3o; lon! are te 7o7ulation livin!O #re te older !enerations ;ealtyO Does te 7o7ulation ave a stron!H;ea= o7inion on !reen issuesO Te can!e in te lifestyle of te 7eo7le affects te !ro;in! demand of te "T" 7roducts. Te can!e in te lifestyle and needs in different demo!ra7ics also affect te demand of te customers. Due to all tese can!es "T" is 7erformin! excellent for te excellence of or!ani?ation as ;ell as for te customer. TEC+NO,O6IC#, 1#CTO*S Tecnolo!y is vital for com7etitive advanta!e6 and is a ma(or driver of !lo)ali?ation. 2onsider te follo;in! 7oints: Does tecnolo!y allo; for 7roducts and services to )e made more cea7ly and to a )etter standard of <ualityO Do te tecnolo!ies offer consumers and )usinesses more innovative 7roducts and services suc as Internet )an=in!6 ne; !eneration mo)ile tele7ones6 etcO 3o; is distri)ution can!ed )y ne; tecnolo!ies e.!. Boo=s via te Internet6 fli!t tic=ets6 auctions6 etcO Does tecnolo!y offer com7anies a ne; ;ay to communicate ;it consumers e.!. Banners6 2ustomer /elationsi7 "ana!ement $2/"'6 etcO #vaila)ility of s7are 7arts and tecnicians. Tecnolo!ical advancement in all te sectors of te country as can!ed te entire socio+ economic environment. 0s7ecially textile sector as incor7orated tecnolo!ical develo7ment and advancement in teir or!ani?ations. @- S-OT #N#,YSIS S-OT analysis is a tool for auditin! an or!ani?ation and its environment. It is te first sta!e of 7lannin! and el7s mar=eters to focus on =ey issues. 5nce =ey issues ave )een identified6 tey feed into mar=etin! o)(ectives. It can )e used in con(unction ;it oter tools for audit and analysis6 suc as P0ST analysis and PorterTs Five+Force analysis. S-OT stands for stren't$s& (ea"nesses& opportunities& and t$reats. Stren!ts and ;ea=nesses are internal factors. Stren't$ could )e: &our s7ecialist mar=etin! ex7ertise. # ne;6 innovative 7roduct or service Location of your )usiness Auality 7rocesses and 7rocedures #ny oter as7ect of your )usiness tat adds value to your 7roduct or service. # (ea"ness could )e: @@ Lac= of mar=etin! ex7ertise Undifferentiated 7roducts and service $i.e. In relation to your com7etitors' Location of your )usiness Poor <uality !oods or services Dama!ed re7utation 577ortunities and treats are eternal factors. For exam7le: #n opportunity could )e: # develo7in! mar=et suc as te Internet. "er!ers6 (oint ventures or strate!ic alliances "ovin! into ne; mar=et se!ments tat offer im7roved 7rofits # ne; international mar=et # mar=et vacated )y an ineffective com7etitor # t$reat could )e: # ne; com7etitor in your ome mar=et Price ;ars ;it com7etitors # com7etitor as a ne;6 innovative 7roduct or service 2om7etitors ave su7erior access to cannels of distri)ution Taxation is introduced on your 7roduct or service STRE!T"S #EA$ESSES @B %. IS5 D,,2 2ertification. 2. :/#P 2ertified *. 1ertically inte!rated. .. 3i! <uality 7roducts. -. 0xcellent mar=et ima!e in te local and international mar=et. @. 3i!ly <ualified mana!ement. B. #de<uate financial resources. C. 2om7etitive advanta!e. D. #do7tin! information tecnolo!y. %,. /ecruitment on merit. %%. Loyal customers. %2. S=illed La)or. %*. Broad and motivational vision. %.. Bac= Trac= System %. Increased em7loyee turnover 2. 2entrali?ed mana!ement system *. 3i! cost of 7roduction. .. Lo; 7roduction ca7acity. -. De+motivated Staff. @. Non+2or7orative culture. B. Insufficient )enefits for te em7loyees. C. Stereoty7e macinery for 7rocessin!. D. 2ommunicational !a7 amon! different de7artments. %&&%RTUITIES T"REATS @C %. 2an ex7and its division suc as enterin! in ;eavin! sector also. 2. 2an introduce its o;n la)el in domestic as ;ell in international mar=et *. 2an ca7ture ne; mar=et se!ment. .. Full 7otential of entertainin! te local mar=et. -. 2an reduce te cost )y 7ro7er utili?ation of resources. @. 0nd of <uota restrictions )y te end of year 2,,.. B. 2an ire ;ell+educated and ex7erienced staff. %. 0ntry of ne; com7etitors (ust li=e 2ina E India. 2. Buyer need and demand can!es. *. Political insta)ility. .. 2an!in! !eo7olitical situation. -. 2an!e of !overnment 7olicies. @. Lo; 7rice offered )y com7etitor B. 4lo)ali?ation. @D T+E INTE*N#, 1#CTO* EA#,)#TION BI1E7 !#T*IC Tis strate!y formulation tool summari?es and evaluates te ma(or stren!ts and ;ea=ness in te functional areas of a )usiness6 and it also 7rovide a )asis for identifyin! and evaluatin! relationsi7 amon! tose areas. Intuitive (ud!ments are re<uired in develo7in! an I1E matri. B, $ey interna+ factors weight Rating 4eighted score Internal stren't$s I)O 566# .ertification. .6 7 .#6 -=A3 <ertified .68 7 .76 >ertically integrated. .68 9 .8 ?igh *uality products. . O8 7 .:6 Back Track )ystem .68 9 .8 ?ighly *ualified management. .68 9 .8 Ade*uate financial resources. .68 9 .8 <ompetitive advantage. .68 7 .#6 *dopting infor'ation techno+ogy .o% ( ."% ;road and 'otivationa+ vision .'% ( ."% I<1=R<*L 4=*$<=))=) "' " ."' Increased e'p+oyee turnover .entra+i>ed ."' & B% B2 T+E ECTE*N#, 1#CTO*EA#,)#TION !#T*IC Opportunities (eight rating (eighted score Can expand its division Such as entering in weaving Sector also. ."% " ."% Can introduce its own label in domestic s well as in international market. .'% ( ."% Can capture new market Segment. .'% " .'% Can reduce the cost by !roper utili"ation of #esources. ."% B .C' Can hire well$educated and experienced staff. ."' ( .(' B* 1hreats %ntry of new competitors &ust likes China ' (ndia. .&' " .&o Buyer need and demand changes. ."' & .&' !olitical instability. ."' & .&' Changing geopolitical situation. .'% ( ."% Change of government policies .'% & ."' Total .66 #.8 S)**%ST(+,S ' #%C+MM%,-T(+,S Tere is no dou)t "T" is very or!ani?ed textile mills. Still tere is al;ays room for im7rovements and follo;in! are some measures I su!!est for im7rovin! te 7erformance of te com7any. i' Decisions ma=in! sould )e decentrali?ed. "iddle and lo;er level mana!ement sould ave 7artici7ation in decision ma=in!. ii' 2om7any sould ave se7arate or!ani?ed mar=etin! de7artment. iii' 2om7any sould introduce 7roducts ;it its o;n )rand name. iv' 2om7any sould ca7ture "iddle 0ast mar=ets. v' 2om7any sould start its o;n 8#77arel Stores 2ain9. vi' 2om7any sould try to reduce ;or=load. vii' Promotions6 increments and oter )enefits sould )e 7erformance )ased in te com7any. B. viii' 2om7any sould introduce for= lifters for indoor lo!istics. ix' Te com7any sould )uild a dis7ensary for ;or=ers in te 7remises. x' 2om7any souldnJt de7end u7on lar!e customers it sould also try to ca7ture small ones. xi' 2om7any sould try to develo7 over all tin=in! in em7loyees6 not only de7artmental tin=in!. xii' 2om7any sould try to create interde7artmental coordination and armony. xiii' 2om7any sould try to control ;asta!e of fa)ric. It reduces cost of 7roduction. xiv' 2om7any sould try to enance its customer 7ortfolio )y increasin! mar=etin! efforts. CONC,)SION: Base Textile is a )i! name in =nitted !arments. Its ;or=in! environment is sim7ly te )est. Te com7any as fully e<ui77ed cuttin!6 stitcin! and 7ac=in! units. Its <uality assurance system is one of te )est in Ban!lades. /ecently it ;ins 8Best su77lier a;ards 2,,%+,29 from F2 Penny te :orld :ide stores cain. Te com7anyJs infrastructure is !ood. 5ffices are fully furnised. Te com7any is centrally air+conditioned. Te com7any is ;or=in! in 8Pa7ers less9 environment. 2om7uteri?ed )ar codin! and )ac= trac=in! system are tere. 2om7any as !ood ;areousin! ca7acity for fa)rics and !arments. 2ustomer 7ortfolio of te com7any is very )road. :orld leaders in #77arel are ;or=in! ;it BT". B- 2om7any as no se7arate mar=etin! de7artment. 205 and "ar=etin! "ana!er of te com7any 7erform mar=etin! functions individually. 2om7any is en!a!ed in mercandisin! and its mercandisin! de7artment is very efficient for ta=in! orders and fulfillin! tem accordin!ly. 2om7anyJs decision ma=in! is centrali?ed. #ll ma(or decisions are made )y i!er mana!ement and im7lemented )y lo;er mana!ement. No; 2om7any is !ivin! 7reference to its 7ersonals se7arate 7ersonnel de7artment is esta)lised and a ladies ;in! is also incor7orated. Financially te com7any is 7erformin! ;ell. Its sales are increasin! and its 7rofits are ra7idly !ro;in!. Sim7ly ;e can say tat Base Textile #77arel Division is 7erformin! ;ell. B@
Corporate Finance is the Area of Finance Dealing With the Sources of Funding and the Capital Structure of Corporations and the Actions That Managers Take to Increase the Value of the Firm to the Shareholders
Corporate Finance is the Area of Finance Dealing With the Sources of Funding and the Capital Structure of Corporations and the Actions That Managers Take to Increase the Value of the Firm to the Shareholders