Internship Report On

Base Textiles Limited

(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@