Arian Textile 2014 Rimsha

Arain Textile Mills Ltd.
Internship Report
1. EXECUTIVE SUMMARY
This report is based on the activities performed during the
internship at ARAIN Textile Mills Limited. Internship
provided practical knowledge of working in professional
environment. This learning experience is described in
detail n the various sections of this report.
In the beginning , there is some detail about the company.
The history and present status of the company is
explained. The organization structure and the details of its
management along with its location are also discussed. I
have also discussed the yarn manufacturing procedure and
the important departments of the company. I have
discussed some business operations and some strategies
as well.
Then I collected information about the activities that I
performed during the internship. I worked as an internee
mainly in Finance & Accounts department. However, I also
spent some time in Purchase section to gather some
information about their working.
Page 1
1.2
Internship Report
Introduction
COMPANY Arain Textile Mills started its production in 1988,

by producing "Pelican Silver" brand. Following are the
production facilities available in this unit.
The group is managing the following companies:
Company Name
Line of Business
Rahim Baksh Textile

Textile (Spinning)
Mills Limited
Rahim
Industries
Limited
Baksh
Textile (Spinning
(Pvt.)
Weaving)
Suleman Fabrics Ltd, Textile (Spinning
Status
Public
Company
Limited
& Private
Company
Limited
Private
Company
Limited
1.3
Arain Textile Mills
Limited
Arain Textile Mills Limited, one of the group companies of
the Rahim Baksh Group, is a Textile Manufacturing unit
established as on 24th August, 1946 and engaged in
manufacturing of yarns of various Ne Counts. The company
has authorized capital of Rs. 411,000,000 as on September
30th 2012.
During year 2009 to 2010 the annual production capacity
of the company was 34.813 million Kgs converted into 20
Ne Count based on 111,136 spindles. Currently the number
of spindles installed has been increased to over 175,000
spindles .
Page 2
Internship Report
A summary of the companys production record for

spinning section for the past three years is given
under:
Ye a r e nde d 30 t h Sep t e mbe r
20 11
2 01 2
2 01 3
N o. of spi ndl e s i nstal l e d
59 ,2 00
7 9, 86 4
1 77 ,4 4 8
Ave rage no. of spi ndl e s w orke d
47 ,0 85
6 4, 19 5
1 55 ,3 3 0
C apaci ty at 2 0 count(K g s. )
17 ,7 78 , 00
0
2 2, 84 1 ,0 0
2
4 8, 66 9 ,1 1
5
N o. of shi fts w orke d
1, 09 2
1 ,0 40
1 ,0 95
Actual pro ducti o n conve rte d at 20

count
14 ,6 52 , 68
0
1 8, 70 3 ,3 7
8
4 7, 39 4 ,4 4
6
C apaci ty Uti l i zati on
82 .0 0 %
8 2. 00 %
9 7. 38 %
The company sales are comprised of local sales which is

almost 100% against advance cash payment. The total
turnover of the company during last year was Rs. 3.226
Billion which is expected to cross 5.00 Billion mark during
the current year.
Page 3
Internship Report
Vision
1.4
To transform the company into a modern and dynamic

yarn,
cloth
and
processed
cloth
and
fi nished
product
manufacturing company with highly professionals and fully

equipped to play a meaningful role on sustain able basis in
the economy of Pakistan.
To transform the company into a modern and dynamic
power generating company with highly professionals and
fully equipped to play a meaningful role on sustainable
basis in the economy of Pakistan.
1.5
Mission
To provide quality products to customers and explore new

markets to promote/expand sales of the company through
good governance and foster a sound and dynamic team, so
as to achieve optimum prices of products of the company
for sustainable and equitable growth and prosperity of the
company .
Page 4
1.6
Internship Report
Group Profile
Arain Textile Mills Ltd

Head Offi ce
61- Abdali Road Multan - Punjab Pakistan.
Phone No.0092-61-111-545-456
Fax No.0092-61-511767
Lahore Offi ce
78/9 Arif Jan Road, Lahore Cantt. Pakistan.
Phone No: 0092-42-111-556-456
Fax No0092-42-6650571:
Karachi Offi ce
1,2 Kaya Market,
Moligi Street, Kharaadar, Karachi.Pakistan.
Phone No: 0092-21-111-555-456
Fax No: 0092-21-2446967
Arain Textile Mills Ltd. started its production in
1985 and its brand "whale", became famous in a
very short span of time. Following are the
production facilities available in this unit.
Page 5
1.7
Internship Report
Certificates
Following awards are achieved :

AOQC Moody International, accredited by TGA/DAR of
Germany, has granted Rahimbaksh Group of Companies
ISO -9002 Certifi cate in 1998-99 void registration #
990548,990549,990450,9904551. Currently all our
shipments are being executed based on ISO -9002
requirements.
Arain Mills Ltd. Certifi cate No: 9904551
Arain Textile Mills Certifi cate No: 9904549
Arain Fibres Ltd. Certifi cate No: 9904550
Rahimbaksh Textile Mills Certifi cate No: 02192
Suleman Spinning Mills Ltd. Certifi cate No: 9904548
Page 6
1.8
Internship Report
Management
Chief Executive
Mr. Muneer Ahmed
Director Operation
Mr. Rasheed Ahmed
Director - Export
Mr. Abdul Waheed
Director - Marketing
Mr. Tanveer Ahmed
Director
Mr. Naveed Ahmed
Director
Mr. Muhammad Asim Majeed
Director
Mr. Qaisar Shabbir
Director
Mr. Waseem Ahmed
Auditors
Ch. Hameed & Company
Charted Accountants
Bankers
Habib Bank Ltd.
Metro Politan Bank Ltd.
Page 7
Internship Report
Muslim Commercial Bank Ltd.

Bank Al-Falah Ltd.
Head Offi ce
61-Abdali Road Multan
Punjab Pakistan.
The group has been managed by professionally

qualifi ed staff in the fi nance, marketing, export,
production, technical, services and legal fi elds. The
experienced management has made smooth
working and profi table operations of the group a
hallmark in the fi eld of management sciences.
1.9
LEGAL
FORMATION
&
STRUCTURE
Arain
Groups structure is a hybrid of divisional and
functional
products
structures;
Yarn
divisions
(Spinning
are
Facility)
based
and
Grey
on
two
Fabric
(Weaving Facility).
Memberships
L ahore Chamber of Commerce Industries
A PTMA (All PAKISTAN TEXTILE MILLS ASSOCIATION).
Page 8
2.0
Internship Report
VARIOUS DEPARTMENTS
Marketing Department
Finance
Department
H. R
Department
ARAIN TEXTILE
MILLS LTD
Production
Quality
Assurance
P.P.C Department
Page 9
3.0
Internship Report
MAJOR FUNCTIONAL AREAS

WHERE INTERNSHIP CARRIED
OUT
3.1
HUMAN RESOURCE DEPARTMENT
The H.R Department is the key strength of any organization

in motivating employees, managing HRMIS system, dealing
external aff airs, handling with each departments
performance, making promotions etc..so my major area was
Human Resource Department.
VEHICLE DOCUMENTATION
After my manual completion I have been given the chance to
use their system and they assigned me a task to enter the
record
of
employees
who
are
using
vehicles
of
ARAIN
TEXTILE.
And it was oracle based program in which the software was
already installed of H.R related activities. This was H.R.I.S, it
included
Appraisals
Transportation
Wages
Bonuses
Page 10
Internship Report
And I enter the data of transportation of almost 400

employees in a day. This data included
Employee I.D
Route
Stop
Vehicle Number
I did some more data entry of transportation along with some

handling of documents in fi les and arrange the fi les in
drawer. This work is all about the activities which we have
read in our semester but there is a diff erence in the practical
work and bookish knowledge.
3.2
EMPLOYEES DETAIL
The employees details was based on
Employee I.D
Employee Name
Father Name
Date of Joining
Date of Leaving
Presents
3.3
PRESENTS
Then I had to enter the presents in the month of April, May

and June in the system and calculate in the system.
3.4
BREAK UP OF SALARIES
Page 11
Internship Report
The break up of salaries was based on the basic and the

allowances, there were categories of 6,000, 8000, 8100,
21000, 28000 and the basic was 55% of the gross pay and I
had
to
calculate
the
settlement
according
to
the
days
presents of the employees in the month.

3.5 COMPUTER AID:
ORACLE SOFTWARE IS INSTALLED.
3.6
G.P.FUND
The G.P.Fund also had to pay back to the resigned employees

and thats been added by 10% of the basic in the sum of
G.P.Fund and it added doubled each month. For example if
the amount of G.P.Fund is 500 for the month, then it will be
added 500+500. And 500 once deducted from the basic
salary.
3.7
DEDUCTIONS
The deductions included
Advance salary
Zakat (applied on 16,228 or above of G.P.Fund)
Advance G.P.Fund
Interest on G.P.Fund
Canteen Expense
3.8
MANUAL CALCULATION
Page 12
Internship Report
If the data is not available in the system then we had to

calculate the settlement by manually.
3.9
EXECUTIVE ACCOMMODATION
Executives are been given hostel facility with respect to the

fl ats which included.
Luxurious Bed Rooms
Attached Bath
T.V
A.C
Canteen
Mosque
Guest Room
3.10 HEALTH & SAFETY MEASURES

Each
company
has
its
own
health
and
safety
measures
according to the compliances regulated by the regulatory

bodies. So, ARAIN TEXTILE also has the safety measures so
they have to inspect their safety measures morning and
evening and it inspects in diff erent areas like
Boarding
Yarn Godown
Linking
Dyeing
Knitting
And the things to inspect are

1. PASSAGE
2. FIRE EXITS
Page 13
Internship Report
3. HOUSE KEEPING
4. SMOKE
DETECTORS
5. FIRST AID BOX
6. FIRE HYDRANTS
7. CONTROL PANEL
8. FIRE
EXTINGUISHER
3.11
AUDIT
The external audit team came today in the Hosiery function

and
they
checked
the
whole
scenario
regarding
to
the
activities been doing in ARAIN TEXTILE documentation in

other departments as well as our department H.R. they have
asked for the following matters to be disclose for their
report, these are
Health & Safety
List of All Employees
Salary Slips (Randomly selected I.Ds from a list of

employees)
Employees Personal Files (Randomly Selected from a

List of Employees)
3.12
OVER TIME DATA
The time that the employees have worked extra hours in the
mill.
This need to be entered in the system for the month of May &
June regarding to their:
I.Ds
Shift (A,B,C,G)
Over Time Hours
Double Shift
Page 14
Internship Report
Date
3.13 STAFF PAY ROLL SLIPS
The salary slips of staff of diff erent departments had to be
executed
in
hard
copy
and
that
was
almost
of
every
concerned department.
3.14 NEW EMPLOYEES DATA
ARAIN TEXTILE hires new employees from time to time and
these
employees
have
to
make
their
personal
fi les
it
includes..
Appointment Letter
I.D Card
Academic Documents
Domicile
ARAIN TEXTILE Form
So all the detail related to the employee need to be entered

in the system it include:
Division Code :
Department Code (Including sub
departments)
Shift (A,B,C,G)
Designated Code
Employee I. D
Joining Date
Name of employee
Father Name
Card Number
Salary Break Up
Date of Birth
Status
Religion
Sex
Address
I.D Number
Page 15
Internship Report
Over Time
G.P.Fund
Qualifi cation Detail

3.15 LEAVE POLICY
To grant diff erent kinds of leave to its employees in order to
facilitate
them
to
attend,
to
their
domestic
and
social
responsibilities.
TYPES OF LEAVE
The types of leave available to employees are:
1) Causal leave
2) Sick leave
3) Earned leave
4) Leave without pay
5) Maternity leave
1. CAUSAL LEAVE
Every employee will be eligible for ten days causal
leave in each calendar year.
1) Causal
leave
can
be
granted
on
pro-rata
basis,
proportionate to the length of service.

2) Un-availed causal leaves shall lapse automatically at
the end of every calendar year.
3) Causal leave cannot be combined with any other type of
leaves except sick leave.
4) Causal leave can be availed for a maximum period of 3
days at one time.
2. SICK LEAVE
Page 16
Internship Report
Every employee will be eligible for eight days sick leave

in each calendar year.
1. Sick
leave
will
be
granted
on
pro-rata
basis,
proportionate to the length of service.

2. Sick leave exceeding 2 days must be supported by a
medical
certifi cate
from
registered
medical
practitioner.
3. Sick leave may be Accumulated up to a maximum of 16
days
3. EARNED LEAVES
Every employee will be eligible for earned leave as
follows
Workers-14 days
Staff -15 days
1. Earned leave will be due only after completion of one
years continuous service with the company from the
date of joining.
2. Earned leave shell be credited to the employee account
at the end of each year of service
3. It is incumbent for management staff in grade M-12 and
above to avail a minimum of 15 days earned leave in a
calendar year.
4. Earned leave lying to the credit of an employee will be
encashed at the time of separation for the company for
employee
Page 17
Internship Report
4. LEAVE WITHOUT PAY

There is no provision of leave without pay in Law. How ever
extra- ordinary leave without pay may be granted at the
discretion
of
the
competent
authority
in
special
circumstances involving absence from duty.

3.16 TIME OFFICE
Time offi ce does the following activities
Keep the daily attendance of employees.
Make the settlement of the resigned employees to be

further proceeded to the H.R Department.
Gives the half leaves or temporary leave for about 1 to

2 hours.
3.17 TRAINING ROOM

Training room does the following activities..
It
makes
employed
the
training
persons
arrangements
and
the
of
related
the
newly
department
supervisor delivers the training.
It also prepares employees personal fi le and allot the

employee number.
It makes the employee card with scanned picture.
It also fi nds the people who are involved in unhealthy

activities in the organization.
3.18 ATTENDANCE ALLOWANCE

Completion of monthly standard working hours is a must
to become eligible for full monthly salary, and attendance
Page 18
allowance.
Only
Internship Report
piece
rate
employee
get
attendance
for
attendance
allowance.
Arain
Textile
limited
set
criteria
allowance.
3000 rupees company pay as attendance allowance.
One absence =3000-500=2500
Two absence=3000-1000=2000
Three absence=3000-2000=1000
Four absence=3000-3000=0
Page 19
3.2
Internship Report
FINANCE DEPARTMENT
The fi nance department is the main department which deal

all the transaction related to the fi nance such as the current
transaction of cash, future forecasting of cash, and preparing
of the books of account for the daily purpose as well as for
the audit purpose. So we can say that for audit purpose it is
the main department.
FINANCIAL STATEMENTS INCLUDES
Balance sheet
Profi t & loss account
Cash fl ow
Statement of equity
Notes to the fi nancial statement

TYPES OF ASSETS
Non Current Assets
Current Assets
NONCURRENT ASSETS
Comprise those assets which have the future benefi t
more than one year. There are two types of Non Current
Assets:Tangible Assets E.g. equipment, building.
Non Tangible Assets E.g. good will,
etc..
CURRENT ASSETS
Page 20
patient, trade mark
Internship Report
comprise those assets which have the future benefi t of

one year. E.g. prepaid expense, account receivable, etc
TYPES OF LIABILITIES
Current Liabilities
Non Current
Liabilities
CURRENT LIABILITIES
Which have to pay within one year. It includes trade
creditors, interest notes payable accounts payable current
portion of long term liabilities.
NONCURRENT LIABILITIES
Which have to pay more than one year .it includes long
term fi nancing long term deposits security deferred taxation.
PROCESS OF PURCHASES STOCK
Indent
Purchaser
Supplier
Store
3.2.1
Store
Purchase order
Inward Gate passes
User
EXPLORING THE STORE ADMINISTRATION

WORK
STORE ADMINISTRATION
GENERAL STORES
RAW MATERIALS STORES
Page 21
Internship Report
FINDINGS
In Arain Textile Limited store operations controlled by Store
Manager. The function of store is to issue and receive items
needed by diff erent departments. So we can subdivided
these functions into following categories.
1. GENERAL STORE
3.2.2
PROCEDURE OF RECEIVING GENERAL
STORE GOODS
In this regard, production department sends demands of
various
demands
items
that
to
General
whether
it
Manager
is
and
required
by
he
the
checks
the
production
department or not. After this he signs on these demands.

Then these demands are written on a duplicate book. One
copy of these demands is being kept in his record and one
copy is being sent to the store in charge. If demanded items
are present in the store, then the store keeper issues the
same.
If the demanded items are not held in the store, then the
store in charge writes required items on a slip called "Indent
Slip" and then this slip is presented to the General Manager,
who signs the slip and send to the head offi ce. Then head
offi ce purchases samples of demanded items and sends to
the mills. At the mills, store in charge informs the production
department that the required or samples of demanded items
have come from head offi ce. The section that requires these
Page 22
items
checks
Internship Report
these
samples
as
to
whether
these
are
according to their requirements or not. Then, the order is

given by the General Manager.
The head offi ce sends these demanded items along with their
bills and then these items are recorded by store in charge on
Store Receipts Note. It is also recorded on store received
ledger. From store received ledger these items are also
recorded
on
the
Bin-Card,
while
these
Bin-Cards
are
attach/d with every type of item. Due to this Bin-Card it is

very easy to check each item.
The demanded items which are available in the local market
are purchased by the Assistant Manager. While Store In
charge checks all these items and then records on Store
Receipt Register.
3.2.3
PROCEDURE FOR ISSUE OF GOODS
There is a book of requisition slip in every section of the

production
department
which
contains
requisition
slip
in
triplicate. If any section of production department requires

anything, they have to fi ll requisition slip on which the
signature of the head of the department is essential. Then
the store keeper issues the items required after recording it
in Daily Issue Register.
REPORTS OF GENERAL STORES
Page 23
Internship Report
The following two reports are prepared by the Store In

charge.
DAILY STORE ISSUE REPORT
This report is maintained daily and kept in a fi le. In this
report issuance of demanded items to every department and
balance of items are given. This report is presented daily to
Assistant Manager and General Manager.
Purchase Report
This report is prepared monthly. In this report the value
of all items in the store is recorded at the end of every
month. After preparation, report is presented to Assistant
Manager who checks it and then sends to the head offi ce.
4.0
The
accounts
FINANCIAL ANALYSIS
of
any
company
either
manufacturing
concern, trading concern or a banking company are amongst

the most easily accessible collections data concerning their
performance. However, if they are to be thought of as data
they should convey some genuine information about how the
fi rm is doing. That is to say, there must be some useful
meanings that can be extracted from the fi gures in the
accounts.
Well-known technique for extracting such information from
accounts is known as fi nancial statement analysis. Financial
Statements of any concern which are frequently used for
fi nancial analysis purpose are:
Page 24
Internship Report
BALANCE SHEET
A summary of fi nancial position on a given date is
called Balance Sheet.
INCOME STATEMENT
A summary of fi rms revenues and expenses over a
specifi ed period is called income statement.
4.1
TYPES OF FINANCIAL ANALYSIS

Most practiced types of fi nancial analysis include the
following
COMMON SIZE ANALYSIS (VERTICAL ANALYSIS)
INDEX ANALYSIS (HORIZONTAL ANALYSIS)
VERTICAL ANALYSIS
INCOME STATEMENT
2014
2013
2012
Sales
100
100
100
Cost of sales
87.56
85.22
86.92
Gross profi t
12.44
14.77
13.07
Page 25
Internship Report
Distribution cost
4.63
4.38
5.65
Administrative
expenses
.18
1.92
3.27
Other operating
expenses
.15
.42
1.67
Other operating
income
.63
.61
1.27
Profi t from operation
6.49
8.66
3.75
Finance cost
6.39
6.39
8.15
Profi t(loss)before
taxation
.09
2.27
(4.40)
Provision for taxation
.93
.77
.79
Profi t(loss)after
taxation
(.83)
1.50
(5.18)
Page 26
Internship Report
BALANCE SHEET
2014
2013
2012
52.46
47.15
44.73
.15
.02
2.72
.039
.04
.02
3.33
3.56
.42
17.30
13.76
17.60
13.28
11.57
8.53
2.94
3.10
6.21
.03
.08
.02
2.47
2.78
2.12
2.30
1.55
1.26
3.37
14.14
11.95
2.32
1.54
.59
Assets
Non current
assets
Fixed assts
Long term
investment
Long term
security
Current assets
Stores, spares and
tools
Stock in trade
Trade debts
Loans and
advances
Trade deposits
Other receivable
Sales tax
recoverable
Short term
investment
Cash and bank
balance
Page 27
Internship Report
Equity and liability

2014
2013
2012
14.06
12.88
12.11
4.225
4.26
5061
17.56
24.99
19.04
Non current
liabilities
Redeemable capital
1.53
.46
Long term fi nancing
16.85
10.31
9.94
Deferred tax
18.39
2.97
2.76
10.54
7.20
9.66
1.34
1.27
1.25
Short term borrowing 39.55
40.01
45.44
Current portion of
long term liabilities
Provision for
taxation
Total equity and
liabilities
7.03
7.66
5.83
1.37
.85
.45
100
100
100
Share capital and

reserves
Authorized share
capital
Issued, subscribed
and paid up share
capital
Reserves
Current liabilities
Trade and other
payables
Accrued mark up
Page 28
Internship Report
HORIZONTAL ANALYSIS
INCOME STATEMENT
2014
2013
2012
Sales
100
119.09
94.99
Cost of good sold
100
115.91
94.31
Gross profi t
100
141.43
99.80
Distribution cost
100
112.57
115.79
Administrative
expenses
100
127.55
173.31
Other operating
expenses
100
289.34
1045.57
Other operating
income
100
116.31
192.39
Profi t from operations
100
159.98
54.92
Finance cost
100
120.00
121.09
Profi t before taxation
100
2860.66
(4415.37)
Provision for taxation
100
98.97
80.54
Profi t after taxation
100
(215.24)
592.07
Balance sheet
Page 29
Assets
Fixed assets
Long term
investment
Long term security
Store, spare and
tools
Stock in trade
Trade debts
Loans and advances
Trade deposits
Other receivables
Sales tax
recoverable
Shore term
investment
Cash and bank
balance
Total assets
Equities and
liabilities
Authorized share
capital
Issued, subscribed
and paid up share
capital
Reserves
Non current
liabilities
Redeemable capital
Long term fi nancing
Trade and other
payables
Accrued mark up
Short term borrowing
Current portion of
long term liability
Provision for
taxation
Internship Report
2014
2013
2012
100
100
98.09
12
98.97
2070.59
100
100
100.99
116.81
58.34
147.25
100
100
100
100
100
100
86.78
95.12
114.90
264.15
122.64
73.73
118.07
74.60
245.35
95.82
99.70
63.94
100
458.02
411.68
100
72.67
29.53
100
109.16
116.09
100
100
100
100
109.99
153.99
100
100
155.32
125.88
100
100
100
33.33
66.76
74.62
68.45
106.42
100
100
100
105.88
110.41
118.77
111.06
133.36
96.16
100
68.14
56.41
Page 30
Total equities and

liabilities
Internship Report
100
109.16
Page 31
116.09
4.2
Ratio
Internship Report
RATIO ANALYSIS
analysis
involves
methods
of
calculating
and
interpreting fi nancial ratios to analyze and monitor the fi rms

performance.
CATEGORIES OF FINANCIAL RATIOS
Financial ratios can be divided for convenience into fi ve
basic categories
Liquidity
Activity
Debt
Profi tability
Market
LIQUIDITY RATIOS
A fi rms ability to satisfy its short-term obligations as
they come due is called liquidity. Liquidity refers to the
solvency of the fi rms overall fi nancial position the ease with
which it can pay its bill.
These ratios are viewed as a good
indicator of cash fl ow problems.
The two basic measures of
liquidity are:
CURRENT RATIO
A measure of liquidity calculated by dividing the fi rms
current assets by its current liabilities.
fi rms
ability
to
meet
its
short
term
It measures the
obligations.
expressed as follow:
`
Current assets
Current ratio
Current liabilities
Page 32
It
is
Internship Report
Years
2014
Current ratio
.79
INTERPRETATION
2013
.93
2012
.84
As our current ratio is less than 1 so it is not the

favorable situation for the company.
QUICK (ACID TEST) RATIO
The quick ratio measures the liquidity and is calculated
by dividing the fi rms current assets minus inventory by its
current liabilities. It is calculating as follow:
Current assets Inventory
Quick ratio =
Current liabilities
Years
2014
Quick ratio
.45
INTERPRETATION
2013
.61
2012
.49
As quick ratio of 1.0 or greater is occasionally

recommended but in 3 years data quick ratio is less than 1
its mean fi rm is not in better measure of overall liquidity.
ACTIVITY RATIO
It measures the speed with which various accounts are
converted into sales or cash infl ows or outfl ows.
A number of ratios are available for measuring the
activity
of
the
most
important
current
accounts
which
includes inventory, account receivable, and account payable.

It includes following ratios:
Inventory Turnover
Average Collection period

Average Payment period
Page 33
Internship Report
INVENTORY TURNOVER
It commonly measures the activity, or liquidity, of a
fi rms inventory. It is calculated as follows.
Cost of goods sold
Inventory turnover =
Inventory
Years
Inventory turnover
INTERPRETATION
2014
4.86
2013
5.14
2012
3.80
Inventory turnover is meaning full when it is compared

with other fi rm in the same industry.
TOTAL ASSETS TURNOVER
It indicates the effi ciency with which the fi rm uses its
assets to generate sales. It is calculated as follows:
Sales
Total assets turnover =
Total assets
Years
2014
Assets turnover
.82
INTERPRETATION
2013
.89
2012
.67
Higher a fi rms total assets turnover more effi ciently its

assets
has
been
used.
Company
uses
its
assets
more
effi ciently in year 2006 and 2007 rather than 2008.

DEBT RATIO
The debt position of a fi rm indicates the amount of
others peoples money being used to generate profi ts. The
more debts a fi rm use in relation to its total assets, the
greater its fi nancial leverage.
FINANCIAL LEVERAGE
Page 34
Internship Report
The magnifi cation of risk and return introduced through

the use of fi xed cost fi nancing, such as that debt and
preferred stock.
There are two types of measuring debt ratio of a fi rm.
Degree of indebtedness (debt ratio)
Ability to service debts (time interest earned ratio)
DEBT RATIO
It measures the proportion of total assets fi nanced by
the fi rms creditors. The higher this ratio, the greater the
amount of other peoples money being used to generate
profi ts. It is calculated as follows:
Total liabilities
Debt ratio =
Total assets
TIME INTEREST EARNED RATIO

It is also called interest coverage ratio, measures the
fi rms ability to make contractual interest payments it is
calculated as follows.
Earning before interest and taxes
Time interest earned ratio =
Interest
PROFITABILITY RATIO
There are many measures of profi tability. As a group,
these measures enable the analyst to evaluate the fi rms
profi t s with respect to a given level of sales, a certain level
of assets, or the owners investment.
It includes the following ratios
Gross profi t margin

Operating profi t margin
Page 35
Internship Report
Net profi t margin

Earning per share
Return on total assets (ROA)
Return on equity (ROE)
GROSS PROFIT MARGIN

It measures the percentage of sales dollar remaining
after the fi rm has paid for its goods. It is calculating as
follow:
Sale CGS
Gross profi t margin =
Sale
Gross profi t
C.G.S
=
Sales
Years
Gross profi t
2014
12.44
2013
14.78
2012
13.07
margin
INTERPRETATION
The higher the gross profi t margin the lower the cost of
merchandize sold. Its mean in 2007 gross profi t margin is
greater in 2007 rather than in 2006 and 2008.
NET PROFIT MARGIN
It
measures
the
percentage
of
each
sales
dollar
remaining after all costs, expenses, including interest and

taxes have been deducted.
It is calculating as follow
Net profi t
Net profi t margin =
Sales
Page 36
Years
Net profi t margin
INTERPRETATION
Internship Report
2014
(.83)
2013
1.50
2012
(5.19)
Higher net profi t margin is preferred which is greater in

2007.
EARNINGS PER SHARE
EPS represents the number of dollars earned during the
period on behalf of each outstanding share of common stock.
It is calculating as follow:
Earning available for common stockholders
EPS =
No. of shares common stock outstanding
Years
Earning per share
INTERPRETATION
2014
(1.29)
2013
2.78
2012
(6.34)
It represents the rupees amount earned on behalf of

each share. Company earned much more rupees in 2007
rather than 2006 and 2008.
RETURN ON TOTAL ASSETS
It is also called the return on investment measures the
overall eff ectiveness of management in generating profi t
with its available assets. The higher the fi rms return on total
assets the better the fi rm is.
Earning available for common
stockholders
ROA =
Total assets
Page 37
Years
Return on assets
Internship Report
2014
(1.29)
2013
2.84
2012
(7.30)
INTERPRETATION
Return on assets indicates that how much fi rm earned
on each rupee of asset investment.
RETURN ON EQUITY (ROE)
The
return
on
common
equity
measures
the
return
earned on common stockholders investment in the fi rm. It is

calculating as follow.
Earning available for common
stockholders
ROE =
Common stock equity
Years
Return on
2014
(3.12)
2013
4.58
2012
(14.06)
equity
INTERPRETATION
It represents that how much company earned on each
rupee of common stock equity.
Page 38
5.0
Internship Report
WHAT I HAVE LEARNT IN
THE
ORGANIZATION
I have learned the things which I could never been able to
learn at university level that I have learnt in the fi rst step of
professional life.
PUNCTUALITY
In the professional life, you got to be punctual at any
step whether you are in the house or in offi ce, because it is
the demand of the working line where you must obey time,
as I learned to be punctual in offi ce but was a bit slippery in
university. My sleep time, my wake up time and my task
accomplishment time was all about to be punctual.
OBEY YOUR BOSS

Its been the responsibility of an employee to always
obey your boss every time whether you are in angry mood or
in jolly mood and same as to your boss.
RESPECT EVERY INDIVIDUAL

The major success in life is to always be happy with
each individual even though he is in low status, because if
you are kind to every one they will remember you till death,
as my behavior was so pleasant to every one, now I have had
Page 39
Internship Report
their admirance and in their good books and have a chance

to get job after completion of M.Com.
HARD WORK
The main thing that I have learned from ARAIN TEXTILE that
every individual is so hard working and committed to their
work that it forced me to do the same thing. So, I tried my
best to have hard work and I got good remarks from my
supervisors.
Page 40
6.0
Internship Report
SUGGESTIONS &
RECOMMENDATIONS
1. They can advertise in international magazines about
their selves
2. ARAIN
TEXTILE
can
publish
its
own
local
business
magazine to promote their sales.

3. Can
be
advertised
over
the
internet
(electronic
Marketing)
4. By holding the seminars on textile industry and off er to
attend the seminars to their customers
5. International business seminars in multiple countries
and off er their products to already existence and new
customers.
6. Make a documentary as a business story about ARAIN
TEXTILE and off er it to show out through such channels
which
can
accept
this
off er
for
example
National
Geographic Channel which shows such programs on

diff erent companies in the world.
7. Monthly Budget, by making monthly budgets for each
department especially for the commercial department,
the late shipments and late purchasing of yarn can be
vanished.
Page 41
Internship Report
8. Organize fashion shows in foreign countries as well as in

local markets.
9. The Human resources & Accounts Department should be
advanced with every respect not only in making salary
slips but also for the other related issues to be occupied
to make effi ciency.
Page 42

Arian Textile 2014 Rimsha

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Arian Textile 2014 Rimsha

Diunggah oleh

Hak Cipta:

Format Tersedia

Arain Textile Mills Ltd.

Arain Textile Mills Ltd.

COMPANY Arain Textile Mills started its production in 1988,

The group is managing the following companies:

Rahim Baksh Textile

Suleman Fabrics Ltd, Textile (Spinning

Arain Textile Mills Ltd.

A summary of the companys production record for

Ye a r e nde d 30 t h Sep t e mbe r

N o. of spi ndl e s i nstal l e d

Ave rage no. of spi ndl e s w orke d

N o. of shi fts w orke d

Actual pro ducti o n conve rte d at 20

C apaci ty Uti l i zati on

The company sales are comprised of local sales which is

Arain Textile Mills Ltd.

To transform the company into a modern and dynamic

manufacturing company with highly professionals and fully

To provide quality products to customers and explore new

Arain Textile Mills Ltd.

Arain Textile Mills Ltd

Arain Textile Mills Ltd.

Following awards are achieved :

Arain Textile Mills Ltd.

Arain Textile Mills Ltd.

Muslim Commercial Bank Ltd.

The group has been managed by professionally

Groups structure is a hybrid of divisional and

Arain Textile Mills Ltd.

Arain Textile Mills Ltd.

MAJOR FUNCTIONAL AREAS

HUMAN RESOURCE DEPARTMENT

The H.R Department is the key strength of any organization

Arain Textile Mills Ltd.

And I enter the data of transportation of almost 400

I did some more data entry of transportation along with some

The employees details was based on

Then I had to enter the presents in the month of April, May

Arain Textile Mills Ltd.

The break up of salaries was based on the basic and the

presents of the employees in the month.

The G.P.Fund also had to pay back to the resigned employees

The deductions included

Zakat (applied on 16,228 or above of G.P.Fund)

Arain Textile Mills Ltd.

If the data is not available in the system then we had to

Executives are been given hostel facility with respect to the

Luxurious Bed Rooms

3.10 HEALTH & SAFETY MEASURES

according to the compliances regulated by the regulatory

And the things to inspect are

Arain Textile Mills Ltd.

The external audit team came today in the Hosiery function

activities been doing in ARAIN TEXTILE documentation in

Health & Safety

List of All Employees

Salary Slips (Randomly selected I.Ds from a list of

Employees Personal Files (Randomly Selected from a

OVER TIME DATA

Over Time Hours

Arain Textile Mills Ltd.

ARAIN TEXTILE Form

So all the detail related to the employee need to be entered