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ACKNOWLEDGEMENT
Up and above anything else, all praise to Almighty Allah alone, the
Omnipresent and the most Merciful and compassionate. The words are bound,
knowledge is limited and time is short to express His dignity. It is one of
infinite blessings of Allah that he bestowed me with the potential and ability
to contribution towards the deep oceans of knowledge already existing.
I pay hum-age to greatest personality of the universe; HOLY
PROPHET HAZARAT MUHAMMAD (PBUH) who is forever source and spring
of guidance in every sphere of life.
At the very outset, I would like to express my hearties and sincerest
sense of gratitude to all my worthy teachers of CIIT Lahore for their inspiring
guidance and constructive criticism.
After my study at Hjavery University Lahore, in BBA(Hons) the
internship program was the most valuable opportunity to study practical
aspect of organization. I selected a textile company, which is well reputed for
its product in Pakistan.
Here I would like to pay my thanks to general manager finance Mr.
Aqeel Butt, Chief Accountant Mr. Zaheer Ahmad who ensured that the best
treatment of training should be impairment to me, Mr. Mukhtar to refer me for
this opportunity, Sales Tax Manager Mr. Tariq Hafeez , Mr. Muhammad Ali,
Tassawar Gill to give their valuable time and attention to enhance my skills
and learnings. Now I have only got training but have developed an ever-losing
association with Ejaz Group of Companies.
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PREFACE
This report is based on the activities performed during the
internship at Ejaz Group of Companies. Internship duration was 6 weeks and
it provided practical knowledge of working in professional environment. This
learning experience is described in detail n the various sections of this report.
In the first section, there is some detail about the Industry & 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.
The second section provides information about the activities that I
performed during the internship. I worked as an internee mainly in Accounts
and Sales Tax department. However, I also co-operate with marketing and
administration department.
The third and last section includes the recommendations.

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Textile Industry of Pakistan
OVERVIEW
Pakistan has dynamic, vigorous and export oriented textile industry
that has an overwhelming impact on economy. Textile being largest industrial
sector generates the countrys highest export earnings of about 58%;
providing the bulk of employment (39%) to largely under utilized workforce,
and contributes 8.5% to GDP.
Post-quota scenario has dramatically changed the global trade
patterns and increased the competition nonetheless there is a new focus
required for textile industry to increase their successive rate. Pakistan textile
industry is facing tough competition from the regional competitors. The cost
of doing business in Pakistan is high as compared to other competitors. On
account of these reasons, the Pakistan textile industry is going through crucial
calculations. But there is no denial of the fact that there exists immense
potential for growth and development of textile industry. In view of the
anticipated competition with rival countries efforts are being made to make
Textile and Clothing sector more dynamic and competitive. A number of
projects inter alia Lahore, Faisalabad & Karachi garment cities and Pakistan
Textile City, Karachi have been planned in public sector with an investment of
over Rs. 3.5 billion to which multilateral institutions and stakeholders are
equity partners. These cities are meant for value added finished textile
products.
Future of the textile industry in Pakistan seems bright as lots of
opportunities are available in the era of globalization. Thus creating greater
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opportunities for the fourth biggest cotton producer country of the world.
Inline with the world market situation, the Ministry is striving hard to
envisage a new culture which would expedite the process of improvement in
all the segments of textile sector and will be synergistic for industry to boost
its share in global trade.
HISTORY OF TEXTILE INDUSTRY IN PAKISTAN
The subcontinent is the inheritor of one of the richest and oldest
textile traditions in the world. Excavations at Mohenjo Daro and Harappa
2500-1500 BC revealed that the inhabitants of the Indus Valley cultivated
cotton. Sir John Marshall, the archaeologist has stated that a few minute
scraps of cotton were found adhering to the side of a silver vase. Clay and
faience spindles whorls indicate that cotton and woolen fibers were spun. A
well-equipped dyers workshop was excavated at Mohenjo Daro and the
fragment of cloth indicates that woven cotton cloth was dyed with madder
root.
Independence from the British in 1947 and the division of the
Indian subcontinent into Pakistan and India started a new era for textiles
production. Pakistan consisted of two entities, east and West Pakistan. The
West was the cotton producing area and the East was responsible for jute
production. At the time of partition, Pakistan had no industrial base and
inherited only one textile mill, the Lyallpur Cotton Mill in Lyallpur [now called
Faisalabad]. This mill produced yarn and gray cloth and no printed fabrics.
Under the Open General Licensing [OGL] scheme, the business
community imported plants and machinery with cash dollars. In 1950,
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Adamjee Mills was set up in Karachi, Kohinoor in Faisalabad, Colony Textile
Mills in Multan, Nishat and Crescent Textile in Faisalabad. These were
followed by Gul Ahmed Textile Mills, Al-Karam, Valika, Star and Rashid textile
mills.
Within a decade the new country of Pakistan was self-sufficient in
cotton and began exporting gray cloth and later cotton yarn. Pakistan started
exporting printed fabrics in the late 1970s to Africa and by mid 80s was
sending printed material to Europe. Pakistans location was ideal, as it lay
halfway between the western world and the Far East. Pakistan has a 28
percent share in world export of cotton yarn and a 6 percent share in world
export of cotton cloth.
It was in the 60s that the power loom took over and by the 70s gray
cloth was being exported at throwaway prices. There are about 200,000
power looms operating in Pakistan some of which are backyard operations.
Handloom, which formed the backbone of textile goods in the last century, is
now almost non-existent, its sales confined to a fast diminishing rural market
and a very small niche market.
Although Pakistan is the worlds fourth largest cotton growing
nation in the world, after the United States, China, and India, its total turnover
for export is only $ 5 billion. Textile goods form 60 % of the total exports of
the country. The commodities exported are yarn, cloth, tents, and canvas,
bags, towels, bed linen, garments, synthetic textiles and other made ups.
With a large and expanding textile industry, textile education and
training became imperative. The Textile University of Pakistan was
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established in Karachi to train technical and management professionals. The
Textile University awards degrees in Textile Sciences and Textile
Management. The National College of Arts in Lahore and the Indus Valley
School of Art and Architecture in Karachi are the only two institutions in
Pakistan, which award a degree in the discipline of Textile Design. Designers
are being absorbed into the industry, bringing about change and vibrancy,
with innovations in Print design and weaving.
Today there are 450 Spinning mills and 35 composite textile mills.
Textile goods form 60 % of the total exports of Pakistan.

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INTRODUCTION & HISTORY OF EJAZ GROUP
OF COMPANIES (EGC)
EJAZ GROUP OF COMPANNIES was established in 1950, for
International trading of commodities like petroleum products, metals, edible
oils and industrial raw material. In 1980, the group ventured into
manufacturing and set up the first industrial unit under the banner of 'Mian
Nazir Sons Industries (Pvt.) Ltd.
The Group commissioned its textile division in 1987 and set up
the first yarn-manufacturing unit under the banner of ' Imran Spinning Mills
Ltd'. In 1989 the unit expanded from 16,500 spindles to more than 40,000
spindles and is now working under the banner of 'Ejaz Textile Mills Ltd.'
Today, the unit comprises of more than 60,000 spindles producing premium
quality Pakistani cotton yarns, imported cotton carded and combed Medium
Staple yarn, fine counts with ELS cotton, Compact yarn, EliTwist Yarns, Core
Spun Yarns and Slub Yarns.
In 1990, Ejaz Group decided to for higher value addition in the
area of yarn rather than follow run of the mills spinning units producing only
weaving yarn. For the purpose, A 30,720 spindles unit, based on state of the
art technology was established in 1992 to produce top quality Carded and
Combed Hosiery yarn under the banner of 'Ejaz Spinning Mills Ltd'.
Altogether, the Group now boasts more than 100,000 spindles producing
premium quality yarns.
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In 2000 Ejaz Group progressed with its vision of becoming of one
of the few integrated textile houses in the country processing cotton to the
final production of garments. The dream became a reality in 2002 when 'Ejaz
Dying & Finishing' was set p with both yarn and Fabric Dying divisions and an
initial capacity of 15 tons/day. This capacity ha now expanded to 20,000
kgs/day, with vertically integrated stitching units producing more than 3
million pieces annually.
Ejaz Group concentrates on producing superior quality Hosiery
yarn through its specialized and state of the art production facilities to cater to
the value added knitted garment manufacturing around the globe. Over the
years, the Groups philosophy of continuous up gradation in plant and
machinery has been implemented with complete balance and modernization
of the 1ST unit and total replacement of machines. Thus today the unit has no
equipment which has not been upgraded after 2001. Earning acclaim for
producing top quality textile products unparallel in any textile house in the
country, Ejaz Group has grown with strategic partnerships worldwide.

VISION
To be the leaders in textile industry by producing top quality products, and by
developing sustainable business relationships with our valued customers.
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Company Profile
Company:
Ejaz Group of Companies
Chairman:
Mr. GOHAR EJAZ
Group Director:
M. DAWOOD PARACHA
Director Operation:
HAMID SAEED
BRIG. PERVAIZ BASHIR
ASIM SAEED
ABID MEHMOOD
Finance Controller:
AQEEL BUTT
Auditors:
INTERNAL:
SHAHZAD ALAM
GHAZANFAR GHAFOOR
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EXTERNAL:
REMAN, SARFRAZ, RAHIM, IQBAL, RAFEEQ FIRM
Bankers:
HABIB BANK LIMITED
BANK AL HABIB
HABIB METRO POLITIAN
UNITED BANK LIMITED
ASKARI BANK
NIB
MUSLIM COMMERCIAL BANK
Alflah Bank
Allied Bank
MEEZAN BANK LIMITED
Head office:
34/E-1, GULBERG III LAHORE PAKISTAN
Mills:
EJAZ TEXTILE MILLS LIMITED
EJAZ SPINNING MILLS LTD
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ABOUT THE CHAIRMAN
Mr. Gohar Ejaz
Chairman of Ejaz Group of Companies
Chairman All Pakistan Textile Mills Association
Mr. Gohar Ejaz is a seasoned Industrialist and
Public Figure. He is the Son of Senator Sheikh Ejaz Ahmed
(late). He is a Qualified Business graduate and one of the
resourceful personality in Pakistan. He is the Chief
Executive of Ejaz Group Of Companies comprising of Ejaz
Spinning Mills Limited and Ejaz Textile Mills Limited.
He is also Chief Executive of The Lake City Holdings (PVT)
Limited a 2000 acre resort / residential project, planned at 13 km on the
outskirts of Lahore, with an 18-hole PGA golf course & 8000 luxury
bungalows/villas, also featuring Sinuous Lakes, Landscape Architecture, Parks
and Pavilions, Civic Amenities and Shopping Malls.
He has been elected unopposed as Chairman, All Pakistan Textile
Mills Association (APTMA) for the term 2010-11. As a Chairman of APTMA, his
achievements are notable.
Karachi: All Pakistan Textile Mills Association (APTMA) Chairman
Mr. Gohar Ejaz is awarded with Hilal-e-Imtiaz, the highest civilian award, on
Pakistan Day.
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The award is conferred on Chairman APTMA for his selfless,
dedicated and successful espousal of the cause of the industry for provision of
essential wherewithal for optimizing its contribution to the economy and
general welfare.
Mr. Gohar Ejaz has galvanized the industry to proceed forward
with unison turning adversity to a unifying and energizing force.
According to the APTMA spokesman, Mr. Gohar Ejaz has been
vocal and fearless voice of the industry, exclusively motivated by the patriotic
desire to contribute to national good and well-being.
His successful representation for securing a free market operating
regime brought benefit in the shape of increased production and enhanced
textile exports that reached a record $13.9 billion during outgoing fiscal 2010-
11. Ensuring of the free market mechanism, he said, brought much benefit to
the value added sector and resulted in a resource transfer of Rs350 billion to
the farm sector of the cotton economy.
Mr. Gohar Ejaz has successfully fought to save the industry from
gas and electricity supply disruptions. Zero rating for the textile industry
value chain and exports is another area where his persistent representation
saved the industry from the hassles of obtaining refund and contributed
positively to the economy.
APTMA spokesman said notable are the efforts of Mr. Gohar Ejaz
in establishing forum for top notch research as centers of excellence for the
vertical and horizontal growth of cotton in Pakistan.
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Mr. Gohar Ejazs vision for an interest rate regime that is globally
competitive has its own merits and is all to lead to increased industrial
investment and growth when permitted internationally and provided
domestically.
Mr. Gohar Ejazs vision for increasing industrial output to bring
about increased exports to the tune of $25 billion by 2015, $1 billion
investment per annum and one million new jobs etc has given direction to and
has set the course for public planning accordingly.

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ORGANIZATIONAL HIRARCHY
CHAIRMAN

Group Directors

Operations Directors

MANAGERS

EXECUTIVES

OFFICERS

STAFF

SUBSTAFF


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Units of Ejaz Group of Companies
Ejaz Spinning Mills Limited
o Ejaz Spinning Mills Limited Unit-I
o Ejaz Spinning Mills Limited Unit-II
o Ejaz Spinning Mills Limited Unit-III
Ejaz Textile Mills Limited
Ejaz Dyeing & Finishing Mills Limited
The project is a vertical unit of knitted garments comprising of in
house knitting, Fabric Dyeing and Yarn Dyeing processes. The prime objective
of the project is to utilize the substantial production of yarn being produced
by the group and to convert it into value added products.
The project has been conceived with a vision to convert the group
profile from basic raw material producing manufacturer to a value added
textile producer. Our future expansion plans are also in line with this goal as
we are in the process of putting up Air Jet Looms, Woven Dyeing & printing for
value added home textile products.
We currently dealing with the local buying houses representing
big brands like GUESS, U.S. POLO and OAKLEY.
Production Capacity
We have around 100,000 spindles divided as following:
Blended Yarn: 32000 spindles
Pak Cotton: 16000 spindles
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CF Yarns: 16000 spindles
Fine Counts: 16000 spindles
Compact Spng: 30000 spindles
Slub Yarn: 3000 spindles
Core Spun: 3000 spindles
Eli Twist: 11000 spindles

Product Line:
We have 100, 000 spindles production unit producing 100 %
cotton yarns starting from 16/1 to 120/1 yarns (Both in Knitting and Weaving
)in different types of cottons i-e Pakistani cotton , USA Pima cotton (ELS), Giza
Cotton (ELS) Cotton, USA (m. staple) Cotton and Australian (m. staple) Cotton
etc.
Currently We are exporting 70% of our production to far East,
Europe, USA and few other countries like China, India and Bangladesh.
We have Latest Technology by Sussen Eli Twist yarns. Eli Twist
Yarns are basically Compact Ring Double Yarns, In Which Doubling Takes
Place in the rings and yarn is single winded which is Mostly Used for high end
Shirting Fabric.
Outstanding characteristics
Very smooth structure, closed yarn surface, circular yarn cross-section
High regularity
Considerably deduced fiber loss at the drafting system from roller pair
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Extremely low hairiness, especially of long fibers (S3, >3 mm)
High breaking load and elongation, maximum work capacity
Very high yarn slippage and abrasion resistance
Very low pilling tendency
Low twist coefficients
Unrestricted traveler speeds
Saving or even elimination of sizing agent in most applications
No restrictions in splicing
We can Also produce 10/1 + CD/CM 100 % cotton Slub Yarns for
Both Weaving and Knitting , As per your required PLT Values . Production of
Lycra Coated Yarn is also our line and the range is From 50/1 CD/CM Compact
to 100?1 CD/CM Compact with different Lycra Specifications . A Fancy
Combination of ELiTwist +Lycra EliTwist + Slub is Also Possible.
Quality Policy
To develop and maintain a consistent quality standard for our
customers through reducing the tolerances to the minimums that are
practically possible. We fight and win the quality war and not the price war.
Quality Assurance/Lab:
The equipments are calibrated after a specific time period to
maintain the stringent testing conditions. Periodic maintenance of individual
machines is defined and is carried out accordingly on time and are monitored
through the ISO systemization. Traceability of the produced article with the
machinist and the machine numbers is another feature to have the quality
assured.
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Customer standards and procedures are carefully documented
and administered through the merchandizing team.
We have been approved over the years in quality audits by our
customers like IKEA, M&S and others.
Shipment Efficiency:
Critical paths are made and monitored to ensure timely handlings
of the orders.
Critical paths of each order / Job are prepared and are sent to
customer so that both the sides abide by these to achieve timely shipments
Strengths:
No outside financing so we can undertake big orders for longer periods
without having to think about any financial constraints.
High Cumulative Customer retention rate since the start of operations
Sustained growth rate of annual sales turnover.
Consistent Quality ; Timely shipments
Major Export Markets:
Ejaz Group of Companies products are being exported to the following
markets:
USA
FRANCE
HONG KONG
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KOREA
TAIWAN
SINGAPORE
SEVERAL EUROPEAN COUNTRIES
CHINA

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Spinning Process


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Blow Rooms:
Raw cotton goes into the blow room where it is manually opened
and sorted. Toughed sized cotton is reduced and removal of trash and
contamination takes place through 2 machines named LOPTEX (optical and
sonic detectors which remove jude, ppt and colored yarn) and ARGUS (smoke
and metal detector).
Card Department:
During this process, raw cotton is converted into sliver.
Orientation of fibers takes place through fiber to fiber opening which is also
called the carding action.
After the carding department the process changes for the
production of carded yarn or combed yarn.
For the production of carded yarn, the sliver from card
department is fed into the drawing machines and then to finishers. In both
these machines, homogenous mixing takes place.
For the production of combed yarn, the sliver from card
department is fed into pre-comber (another name for drawing machine), then
into uni-lap where lap formation takes place. The lap is then fed into the
comber machine where short fibers are removed and we get comber noel. The
sliver from the comber machine then goes to finisher.


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Simplex:
The sliver from both the processes, whether from carded or
combed, is then brought to the simplex machine where it gets into the rowing
form to contract space. Here for the first time TPI is introduced.
Ring Department:
At this stage of production, the rowing form is converted into yarn
on bobbin. Here drafting, twisting and winding takes place. At this stage,
traveler is the twist inserting element.
Auto Cone Department:
Yarn from bobbin is transferred to cones and the final product is obtained.
Conditioning:
Relative Humidity % = 98.6 [(dry temperature wet temperature)/ dry
temperature] x 300
The yarn on cones is condition for at least 12 hours at an RH value
of 68% so that yarn absorbs the humidity. It increases the weight and brings
strength to the thread.
Warping Department:
Cones from spinning mills, after being tested from the labs, are
brought to the creels in the warping department where around 700 to 800
ends are spun onto a single beam. The most common problem which can
emerge during this stage is that of weak yarn. Due to breakage of even a single
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thread, the machine has to be stopped which causes a heavy loss in
production. Another major problem could be that of short length.
Sizing Department:
Beams from the warping department are taken to the sizing
machine where 7 to 8 beams are spun onto a single beam according to the
requirement of the fabric which is being produced. All the threads are passed
through a mixture of almost 6 different chemicals, the most prominent among
which is starch. This helps give strength to the threads which become tough
after getting through this process and ironing. After this, these beams having
greater number of ends and starched yarn is taken to the weaving
department. A problem could be that due to more TPI there could be low
absorption of chemicals which might not give the required strength to the
yarn to handle the high tension on the looms.
Weaving Department:
Beams which are brought here are used for warping on looms. For
weft, yarn from cones is directly used through air pressure from air jet looms.
From here we get the fabric which is then taken into the folding and
inspection department.
Inspection department:
The fabric which has been produced is taken to the testing
machines where it is tested for various problems of neps, thick and thin
places, shade variation, dead cotton etc, and is then folded on rolls to be sent
to the processing and dyeing department.
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Dying & Finishing Process:
The dyeing and finishing process consists of the following 4 steps:
I. Pre-treatment
II. Dyeing
III. Finishing
IV. Folding and inspection
I. Pre-treatment:
In the process of pre-treatment the cloth is singed by burning and
then de-sized by an enzyme. Singing removes the small fibers in the form of
fur on the surface and de-sizing is done so that the starch is removed for the
cloth to absorb the dye properly. After de-sizing the cloth is kept for around
24 hours for the enzyme to completely remove the sizing by bacterial action.
After de-sizing is complete, scouring is done by which all impurities are
removed by NaOH and the cloth is ready for bleaching through which white
natural color is obtained by using hydrogen peroxide. After this the cloth is
mercesized. Merscezing is the process of applying NaOH which aids
penetration of dye into the fibers, increases chemical reactivity, swells the
fibers, produces shine in the cloth and gives a soft feeling to it.
II. Dyeing:
Dyeing is done through thermosol machines and the washing
process is done through pad steam. In this stage, the cloth is dyed at a
temperature varying from 120 to 200 degrees depending upon the nature of
the dye and that of the cloth as well. The cloth is emurized or peached before
going to the finishing stage.
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III. Finishing:
In this process the cloth goes into the stenter machine where it is
stretched horizontally to the width required by the client. The heavy quality
cloth is stretched by the pin type stenters whereas the light quality cloth is
stretched by using the clip type stenters. After being stretched horizontally,
the cloth is surforized for shrinkage control.
IV. Folding and Inspection:
The final dyed cloth is taken to the inspection machines where the
cloth is tested through a special grading system of 3 points. Most of the
problems are removed instantaneously but those which cant be removed are
cut off. The final product, according to its categories is folded onto the rolls
and is ready to be purchased by the customers.

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MARKETING DEPARTMENT
In every organization marketing department plays a vital role for
prevailing the organization in the marketing. Its a bridge between the
customers and the organization. In Ejaz Group of Companies the marketing
department is also performing his responsibility for the best of the
organization. It is engaged in getting orders from customer and fulfills the
order according to the requirements of the customer by the follow up of the
entire departments.
ACTIVITIES PERFORMED BY THE MARKETING
DEPARTMEN
Following procedure is been used
I. Keep growing:
A good quality product, Fast and efficient production and having
best staff in the organization is not enough to survive and be no. 1 in today
competitive markets. The marketing department is the one who makes and
contact between the organization and their markets. Its the face of the
organization. A good marketing staff is the symbol of growth in sales.
Marketing department keep alive the organization through
different advertising channels and mostly by their personal contacts. They
brings new customers for the organization and retains previously. Also with
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help of R&D they keep eyes on the market and develop strategies in the best of
the organization.
II. Send Samples:
Marketing department send the samples to the customer according to
the requirement of the customers. If customer needs some changing or
justifications against the samples, the marketing department make these
changing happens and justify their issues and assure them of quality products
and services.
III. GETTING THE ORDER:
When the customer accepts the sample and satisfied by the
company then he sends the order for production. The order includes, rate and
the number of products to be purchased by him, with the final specification.
IV. SETTING OF PRICE:
When the sample is accepted by the customer then marketing
department set the price with customer after discussing with general
manager. The profit in price is generally set in the range of 20-30%.
V. MANUFACTURING OF ORDER:
Then the order is send to the planning department for running in
the production department with all details of the specified products, no of
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products and the dates of deliveries so they planned their productions
according to.
VI. SHIPMENT OF GOODS:
When the production is ready for the shipment, the marketing
departments arranges the shipment processes and make sure so that the
shipment get done on time and keep the products safe all the way.
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FINANCE DEPARTMENT

Aims of finance department:
The finance department of a Ejaz Group of Companies takes responsibility for
organizing the financial and accounting affairs for two companies of the Ejaz
Group of Companies (Ejaz Textile Mills Ltd & Ejaz Spinning Mills Ltd) through
three financial functions including
Financial Accounts: The preparation, presentation of appropriate
accounts, and the provision of financial information for managers &
directors.
Audit: Audit of all the transaction and financial activities on daily basis.
Sales Tax: Keeping the records of sales taxes, withholding taxes and co-
ordination with Fedral Bank of Reserves for the government policies
and other taxation issues.
The main areas covered by the financial departments include:
1. Financial Accounts:
The financial accounts of the company are organized by the a group of 6
employees.
i. Book keeping procedures.
Keeping records of the purchases and sales made by a business as well as
capital spending. These records today are typically kept on computer files. But
we still use the term ledger entries to refer to the days when all financial
transactions were carefully recorded in thick books (ledgers).
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ii. Creating a balance sheet and profit and loss account.
Financial statements need to be produced at given time intervals, for example
at the end of each financial year. Trial balances are extracted from the ledger
entries to create a Balance Sheet showing the assets and liabilities of a
business at the year end. In addition, records of purchases and sales are
totalled up to create a Profit and Loss (P&L) account.
iii. Providing management information.
Managers require ongoing financial information to enable them to make
better decisions. For example, they will want information about how much it
costs to produce a particular product or service, in order to assess how much
to produce and whether it might be more worthwhile to switch to making an
alternative product.
iv. Management of wages.
The wages section of the finance department will be responsible for
calculating the wages and salaries of employees and organizing the collection
of income tax and national insurance for the Inland Revenue.
v. Raising of finance.
The finance department will also be responsible for the technical details of
how a business raises finance e.g. through loans, and the repayment of
interest on that finance. In addition it will supervise the payment of dividends
to shareholders.


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2. Audit:
Two independent Auditors specialists review the accounts of company
to ensure the validity and legality of their financial records.
They essentially carry out a financial health check on the company. They also
act in an advisory role to recommend possible risk aversion measures and
cost savings that could be made they examine the money going in and out of
company and making sure it is recorded and processed correctly.
Key activities include:
Collating, checking and analyzing spreadsheet data.
Examining company accounts and financial control systems.
Gauging levels of financial risk within company.
Checking that financial reports and records are accurate and reliable.
Ensuring that assets are safeguarded.
Identifying if and where processes are not working as they should, and
advising on changes to be made.
Preparing reports, commentaries and financial statements.
Liaising with managerial staff and presenting findings and
recommendations.
Ensuring procedures, policies, legislation and regulations are correctly
followed and complied with.
Undertaking reviews of wages.
The auditors work typical office hours from 9.00am to 5.00pm, Monday to
Saturday. Some time they need to work extra hours or during the weekend to
meet deadlines, particularly during tax audits.
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The auditors sometimes travel to meet clients and visit factory or warehouse
locations in order to make stock and equipment checks.
3. Sales Tax:
calculating, preparing and submitting tax returns
advising about business plans and investment opportunities
providing guidance about taxation legislation
streamlining and minimizing tax liabilities and liaising with the FBR and
Custom departments.

33

ADMNISTRATION DEPARTMENT
The Department lies within the Directorate of Finance and Administration. It
is tasked with providing administrative and logistical support to the entire
organization.
Mandate of the Administration Department include:
General office Management and Running.
Transport Management.
Registry Management.
Assets Management.
Property Management.
Security and Safety.
General Office Management and Running provides
services, which include:
Provision of offices for all staff.
Provision of all office equipment for use by staff e.g. Computers.
Ensuring a clean and secure office environment.
Ensuring availability of adequate lighting, water, telecommunication, email,
fax, computers etc.
Providing, where possible, designated parking for vehicles.
Ensuring availability of stationery. All stationery must be procured within
the PPDA Act and guidelines
Ensuring availability of adequate photocopying services/facilities.
Setting of internal operating rules.
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Transport Management
Every staff is supposed to be provided with transport in the discharge of
his/her official duties.
The department is responsible for the acquisition of transport ( cars, trucks
and motorcycles)
It provides fuel for all vehicles, ferries, motorcycles, plant and equipment.
It is in charge of repairing and Maintenance of all vehicles, trucks and
motor cycles.
Registry Management
All incoming and outgoing mails must go through the registry.
The registry must have in place good and efficient record filing
and trucking systems for all the records i.e. all mail must be recorded in a mail
book, filed and the file sent to the addressee for action. The registry shall
maintain a file movement book for tracking all station files.
Assets Management
This includes;
Acquisition of assets
Management of assets (engraving, locating, checking/counting etc)
Recommending disposal of assets



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Property Management
Management of all the property of includes buildings installations e.g
quarry sites, land etc.

Security and Safety
Security is supposed to be provided at all sites.
Security should be for all assets and property.
Users must ensure safety of assets in their possession.
Security shall be provided through hiring of a reputable firm.
Risk assessment must be conducted to determine what special areas the
security firm shall cover.
R&D Department:
In order to achieve and maintain market leadership, we have
invested significantly in extensive research and development facilities to stay
abreast of latest trends in print and fabric confection we get consultation from
European designers and even our representatives visit various top-of-the-line
stores in foreign markets regularly. That market data is then converted into
our own registered designs through our R&D department and is offered to our
customers.

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WORK DONE BY ME
I worked for 6 weeks at Ejaz Group of Companies (Head office) as
a trainee in the finance department. Mr. Aqeel Butt is the Finance Controller of
Finance Department. He is very nice and co-operative man. I have worked in
two main fields of this department. In Sales Tax work under the sales manager
Mr. Tariq Hafeez and in accounts field I assist to the Chief Accountant Mr.
Zaheer Ahmad.
It was a great experience. When I joins the company as an
internee I was just a fresh graduate student but during this 45 days session I
learnt a lot about the real practical field. Mostly people says that studies are
just for degrees and when you goes in real life practical job there you found
completely different things. But during this internship I feel that they are
wrong all we have learnt in our studies are the base of our real life and the
practical jobs. Jobs are growing advance levels of learnings where we do our
studies in practice and keep learning in this process.
At first day of my internship in sales tax department I was given a
task for simple data entry work in excel sheets and I have done it very well
and appreciated by the seniors. After that day by gradually they give me new
tasks new things to do.
First of all the most important thing is to understand the nature of
financial document and understand the transaction happens against the
document. That comes with passage as I deals with different documents and
keep recording their entries. I am very thankful to my seniors over there who
give a special attentions from there busy time and before giving any specific
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work they give me a complete briefing on it and taught me that how to
understand and read the financial documents.
I also keeps records and make registers for the sales invoices of
the company and 20% withholding tax on sales documents along all of buyers
for each month separately.
During all this session I have learned the following financial
studies in practice.
Study of Financial Statements
If analytical data are to be reliable, they must be developed from
financial statements that properly exhibit business position and operations.
As a first step, statements that are to be used as a basis for analysis should be
carefully reviewed to determine whether they display any shortcomings or
discrepancies. In the course of the examination, the following questions
should be asked: If they full disclosure of all relevant financial data? Have
appropriate and consistent bases for valuation been used? Are the data
properly classified? When necessary, statements should be corrected so that
they report the full financial story in conformance with accepted accounting
principles.
1. Voucher Making:
The first step of entering in an accounting house is to make a
voucher for further movement. In any system of Finance or Accounting there
is always a voucher making for its safe and sure, the process of maintaining
records. Voucher plays an important role in presentation of proof for the
record of accounting and finance. There are three of vouchers mostly used in
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Ejaz Group of Companies for holding back the books of accounts in shape of
evidence.
i. Journal General Vouchers:
There is a rule in accounting to booking our future expenses now.
However they are not paid or receipt yet this is called accrual rule. Journal
vouchers are accounting booking procedures through which we record a
transaction in advance for a future expense. For example salaries are
generated at the end of month but they are not paid yet so we make journal
voucher for that in advance. The basic rule of debit credit is same as in receipt
and payment vouchers.
Some of examples documents for journal vouchers I have deals in EGC are
Mess expenses
Yarn commission bills
Export expenses
ii. Receipt Vouchers:
These are revenue vouchers, named as receipts vouchers. These
receipt vouchers are made, when the organization receives any amount either
in shape of revenue or in either case may be. When organization receives
advances against any head, any income for miscellaneous sources, interests,
dividends etc, the official receipts vouchers are made.
Party Receipts
Other receipts from associated companies
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Bank credit advises
iii. Payment Vouchers:
The third kind of voucher is payment vouchers. These vouchers
are usually cash or bank vouchers (c.v.). These vouchers are made when the
organization is required to pay for its expenditures or in any case may be
when organization pays amount in any head like to pay for Salaries,
purchases, wages interest, bonus, advance payments etc, the cash voucher are
made.
When the payment is to be made by hand by the cashier the
simple cash voucher is made. The signatures are received on the revenue
stamp, pasted on that cash voucher to ensure the acknowledgment of
payment. This voucher is made for petty cash expenses, day to day
expenditures, over time payments, loading and unloading charges, TA/DA
payments.
When the payment is to be made through bank by making a
cheque or draft a bank payment voucher is made.
Part payments
Courier charges
Bank debit advices
Customer advises
Tax payments
Other payments

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2. Taxes:
Not all about tax but I have learned some of the basic procedures
of the sales tax. There are two main heads of tax one is sales tax and second is
income tax.
i. Sales Tax:
A tax imposed by the government at the time of sale on goods and
services. It is collected by the company and passed on to the FBR Pakistan.
ii. Income Tax:
A tax that governments impose on financial income generated by
all entities within their jurisdiction. By law, businesses and individuals must
file an income tax return every year to determine whether they owe any taxes
or are eligible for a tax refund. Income tax is a key source of funds that the
government uses to fund its activities and serve the public.
The government of Pakistan employ a progressive income tax
system in which higher income earners pay a higher tax rate compared to
their lower earning counterparts. Income tax starts from an annual income of
400,000 Rs. That gradually increase by the income amount its from 5%-20%.
iii. Withholding Tax:
Withholding tax is law used by the government to ensure the right
payments of taxes and to keep tracking the sales of companies. It helps to
minimize the frauds. Two types of withholding taxes are paid. One is on sales
tax amount and other is on principle amount.
On sales tax amount: company which has to pay any amount to
suppliers against purchases they withhold 20% of the sales and paid rest of
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80% to the company and 20% is paid by the company to the government on
behalf of the supplier.
On principle amount: The buyer company also withhold amount
on principle amount or tax excluded amount of purchase. This is different for
different trades like on purchase goods its 3.5% for services its 6%, for
commissions its 10% and others. Some of companies also have exemptions
called zero tax rated.
BEST OF THE COMPANY
As an internee I spend 6 weeks in the company and I fell a very
comfortable stress free environment. This is big achievement for a company to
develop a good organizational culture because its very difficult to arrange
such a stress free, well communicated and well coordinated culture. All credit
goes to the leadership and well systematic communication channel developed
for the company. Another reason for this success in smaller no of the
employees which increase the interaction and entertaining free hand
environment where employees interacts with each other through mess halls
or while visiting other departments for the coordination.

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RECOMMENDATIONS & SUGGESTIONS
i. Assess the Performance of employees:
There is no efficient method introduced by organization for his
assessment of performance of employees. Promotions are completely relying
on higher management like managers est.s there can be some sort of
favoritism. So to avoid all this, there should be a proper method to judge the
employees.
ii. Search New Markets:
Organization can enhance profit by finding new market in the
world. Ejaz Group of Companies should continue to expand its business, by
increasing its sale through aggressive market penetration strategies.
iii. Improve Information Technology System:
Ejaz Group of Companies should immediately improve its
Information Technology System. The software currently in use should be
made error free and updated as it is the need of the hour.
iv. Computerized Accounting System:
As far as accounting is concerned, although the entire system is
computerized, but there still involves lots of paperwork. So this should be
minimized acquiring more advanced accounting software and develop
manuals to understand its procedures specially for new employees.

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v. Job Rotation:
There is no rotation of employees within departments and cross
departments. So the top management should immediately start thinking in
terms of rotating the employees in various departments, as this transforms
work force into human capital.
vi. Distribute Work Equally:
Management should distribute work equally among different
employees. Some of the employees are overburdened while some sections are
overstaffed.
vii. Improve its Website:
EGC needs to improve its website. More information relating to
financial performance, SBUs details products descriptions, about the
company culture and sale of the company should be available on the website.
viii. Advertise/Exhibitions:
One of the most pressing needs of the time is to advertise Ejaz
Group of Companies in the electronic media & arrange exhibitions locally and
internationally. Ejaz Group of Companies has not, till date, employed
advertisement in electronic media as a full fledge marketing tool.
ix. Market Survey:
The management should make the market survey time to time to
get more and latest information about the market factors like the price,
demand, current consumer trends etc.