Chapter # 5

CAHPTER # DESCRIPTION

PAGE #

1.

INTRODUCTION

1

Objective of the T T Mills

2

Strenght

2

Capital

3

Production of the Mill

3

Raw Material

3

2. ORGANIZATION

4

Mills Setup

4

Administration

4

Technical Wing

4

Production Wing

4

Secretariat

5

Organization Chart

6

3. LEVEL OF MANAGEMENT

7

Top Management

7

Middle Management

8

Lower Management

8

4. STATUS AND NATURE OF BUSINESS

9

Significant Accounting Policies

9 Accounting Convention

9

Taxation

9

Foreign Currency Translation

9

Staff Retirement benefits

10

Tangible Assets

10

Stores and Spares

10

Stock in Trade

10

Revenue Recognition

11

5. STORES ADMINISTRATION

12

General Stores

12

CHAPTER #

DESCRIPTION

PAGE #

Specimen of Indent Card

13

Specimen of Bin Card

15

Report of Store

16

Raw Material Stores

17

Finish Good Stores

18

6. FINANCE AND ACCOUNTING

20

DEPARTMENT

Function of Finance Department

20

Function of Account Department

21

Function of Account Office

22

Three Column Cash Book

23

Petty Cash Book

23

Voucher Record Book

23

Bank Book

24

Journal Ledger

24

Sales Polices Practice and Procedure

24

Procedure of Recruitment

25

Purchase Procedure

26

7. PERSOMMEL ADMINISTRATION

27

DEPARTMENT

Objective of Personnel Administration

27

G.M Head Office

28

Head Office

28

Accountant

29

Assistant Accountant

29

Purchaser

30

Purchaser Assistant

30

Mills Function

31

Resident Director

31

Function of Administration Wing

31

Assistant Manager

32

Office Assistant

32

Cashier

33

Excise Office

33

Labour and Welfare Office

34

Function of Labour and Welfare Office

35

CHAPTER #

DESCRIPTION

PAGE #

Time Office

36

Security Office

36

Transaction Function

37

Promotion and Lay Off

38

Wages Salary Administration

39

Administration Staff Grade

39

Technical Staff

40

Discipline Discharge

41

Training and Development

41

Benefit and Service

41

Gratuity

42

Economic and Other Incentives

43

Accommodation of Facility

43

Increment

44

Personnel Detailed File

44

Attendance Card

46

8.

PRODUCTION DEPARTMENTR 47

Function Of Technical Wing

47

Blow Room

49

Carding

49

Drawing

50

Simplex

50

Ring

51

Cone Winding

51

Packing and its Objective

52

Marketing Department

52

Quality Control Laboratory

53

Organizational Structure of

55

Production Department

9.

PROBLEM AND SUGGESTION 56

Problems

56,58

Suggestion

58,59

ACKNOWLEDGEMENT

I am very grateful to Almighty Allah the most merciful and the

Beneficent for enabling me to complete this Internship work.

I am thankful to all the staff of Tribal textile Mills, D .I .khan for

Providing me the required assistance in completion of my Internship.

I am also thankful to the chairman Proff Dr. Mohammad Saif and

Professor afar Abbas(Advisor) for providing me necessary guidance in

Completion of this report. I am thankful to my friend specially Sohail-ur-

Rahman for his full co- operation and encouragement in my studies.

I owe a debt to my parents and Brother for helping me in

Completion of my tedious work.

SAMIULLAH KHAN

SESSION 2006-2008

ROLL NO : 446

M.COM (FINAL)

DEDICATIoNTO

MY COUNTRY

I WAS, I AM AND I WILL BE

TO

MY PARENTS

FOR THERE

MORAL SUPPORT, KIND PETRONAGE AND

PRAYERS

TO

MY BROTHER

AND MY SISTERS

FOR THERE

OCEAN OF LOVE AND HAPPY AMBITIOUS

TO

ALL THE PAINFULL MOVEM ENTS

WHICH CAME IN MY LIFE

BUT HELP ME ALLOT TO ESTABLISH MY SELF

UP TO THIS LEVEL

PREFACE

Internship In any business organization for six weeks is necessary and partial requirement of master degree of commerce. This program was conducted by the department of commerce and business administration Gomal University Dera Ismail Khan.

The basic purpose of internship program is to get student acquainted the practice in the working organization. After completing internship program students have to write reports in which they have to write all the policies and practices they had observed during internship period.

During internship period I have studied the administration department, production and various section like accounting, marketing.

During the training, the internee not only observes the application of his theoretical knowledge to practical field but also find an opportunity to meet the experienced higher officials of organization and discuss various matters with them.

This report contains brief introduction regarding organization and functions of the Departments and sections of the project. I submit this report with great sense of fulfillment and satisfaction.

SAMIULLAH KHAN

SESSION : 2006-2008Chapter # 1

INTRODUCTION

Brief History of Tribal Textile Mills Limited

Tribal Textile Mills wad established in 1964 situated on Tank Road,

D.I. Khan with the aim to provide employment opportunities to the people

of this area. The Managing Agents of this Mills are Menno Enterprise Ltd,

having head office in Lahore .They are one of the leading-managing agents

in our country , at present, they are managing 14 Textile Mills in our country .

Mr. Shahzada Alam Monnoo was the first owner of this Mill with some

other shareholders, following proper procedure of getting permit form Govt.

of Pakistan. Due to some disputes between Management and Labour union Mills

remain closed for six years from 1978 to 1984.However it started its operations

in new constructed building with modern machinery .In newly constructed

building , good working atmosphere has been provided to the workers and for

increasing production modern equipment has been installed in this building.

When mill started functioning it was decided that mill will be used for productionof yarn and ultimately this yarn is supplied to the textile industries in Faisal Abad, Lahore and Karachi.

At present this Mill is working very efficiently under the control of Resident Director, Assistant Manager and Technical Manager .Its reputation is very satisfactory among all the mills working in N W F P. Currently Tribal Textile Mills is playing an important role in textile industry of Pakistan with 6750000 kg yarn production per annum.

OBJECTIVES OF TRIBALE MILLE LTD:

The primary objectives of every business are to earn profit however the objective of T .T .M regarding production Administration and personal read following.

1. To achieve the markets target.

2. To produce good quality yarn.

3. To satisfy customers needs.

4. To maximize the profit.

5. To strengthen the economy of the country.

6. To developed the country in the field yarn industry.

7. To rise the standard of living of the countrymen.

8. To produce technical and skilled personnel.

9. To help to increase the country export of yarn.

10. To make self-sufficient the country in the production of yarn.

11. To reduce unemployment from the society.

STRENGHT

There are 724 workers employed in tribal textile mills. Their standard of living is good .All the workers are working efficiently for maximum satisfaction of their Superiors. Tribal textile mill is playing a vital role in the economic development of Pakistan by reducing unemployment and producing better quality yarn.

CAPITAL

At beginning its authorized capital Rs. 10,000,000/- (Rupees Ten

Millions only) dividing into 100,000 ordinary of Rs.100/-(Rupees one

Hundred ) each. Now its authorized capital is 25,000,000/- (Rupees

Twenty- five Million only). Divided into 250,000 ordinary shares of

Rs . 100/- each.

PRODUCTION OF THE MILLS

The Major product of the company is yarn of different kinds. Its product enjoys good reputation in the market under fair competition. The product is dispatched to its sales agents in Karachi, Faisalabad and Jilal pur Jattan. The daily production of the mill is approximately 18 thousand kilo grams.

RAW MATERIAL

Its raw material consists of 80% Polyester and 20% viscoses. I. C.I is the main supplier of synthetic fibre in Pakistan.When local companies could not provide raw material it is imported from Japan, Korea and Malaysia.

Chapter # 2

ORGANIZATION

MILLS SET UP

Being management head, Resident Director, Controls the following three.

sections of the organization

1 . Administration

2. Technical

3. Production

ADMINISTRATION WING

Internal and external affairs of the Mill are controlled by administration wing. Assistant Manager and Labor Officer are the responsible officers, who manage and control administrative affairs under the supervision of Administrative Director.

TECHNICAL WING

Technical wing consists of those persons who manage the mills technically. In the mill there are 102 technical personals consist of Engineers, Foremen, Head Fitters, Fitters, Assistant fitters, Helpers who perform their jobs and control the mill technically according to the instruction of their superiors.

PRODUCTION WING

The operation of whole mills is based upon this wing .production wing is most important wing of the organization. Production wing consists of Quality control Experts, Supervision Experts, Skilled, Semiskilled and unskilled workers.

This wing cover 75% of the total strength . The main objective of this wing maintain the good quality and achieve target given by the top management.

SECRETARIAT

Secretariat or head officer of the mills is established in Lahore. The offices of the top management like Chief Executive , Directors, all General Mangers like Finance, Sales, are established in Head office at Lahore .Head office controls the mills through communication means i.e.Internet, telephone, fax, courier services by collecting according to the circumstances.

There are two main authorities Resident Director Mills and General Manager sales & purchase, posted at head office , who run and control the mills according to the rules and regulations laid by the top management, with the help of different subordinates as shown in organizational chart.

PRESIDENT

Chairman

Managing Director

Exective Director Director finance

Admin Director

General manager Finance & Purchase General Manager Marketing

Accounting Purchasing

Marketing

Resident director

Assistant ManagerLabour Officer

Technical Manager

Deputy Spinning Master

Engineer & Formen Labortary Staff Excise officeSecurity officeStore Supervisors & Monitors

Chapter # 3

MANAGEMENT LEVEL

Management levels

Management of the Mills divided into three portions such as top

management , Middle Management and Lower management.

1. Top Management

This management consists of President, Chairman, Managing Director, Administrative Director, Executive Direct, General Manager and Mills manager. Top management at head office formulates polices and makes decision about the company activities for achievement of its objective. Mills manager implements decisions of the head office management in the mill. All the directives, whether administration or technical, pass through him. Mills manager controls all the matters like recruitment and office routines. He takes all action according to the policies of the head office.

Mills Manager is empowered for performing following things: -

1 . Assign tasks to subordinates in their specialized areas.

2 . Make decisions within his jurisdiction.

3 . Make necessary steps for getting satisfactory performance from

subordinates.

3. Middle management

Middle Management of the mills consists of Technical Manager, Assistant Manager, Labour Officer. This management receives orders from the Resident Director and implement those efficiently and effectively on lower management.

The main concern of Middle Management is to control and direct the operational process, with the consent of mills Manager, I . e Supplies, Equipment, working conditions, production standard , flow of work and appropriates methods & techniques for best performance.

4. Lower management

Lower Management is the lost level of management, consisting of Foremen, Supervisor and shift Incharge, which administrates the production department. 7

]

Chapter # 4

BUSINESS STATUS AND NATURE The Accounts Books have been prepared in Tribal Textile Milks according to the companies ordinance 1984, and it is registered as a public limited company and engaged principally in manufacturing and sale of yarn.

1. SIGNIFICANT ACCOUNTING POLICIES

Convention of Accounting

These accounts have been prepared under the historical cost convention modified by capitalization of exchange differences and revaluation , freehold land that was made by the independent value in 1992.

Taxation

Provision for taxation is based on taxable income for the year, if any and Tax credits are recognized for specific taxable income.

Using the liability method does the company accounts for deferred taxation of all materials on different timings. However, deferred tax is not provided if it can be secured with reasonable probability that these timing differences will not reverse in the foreseeable future.

Translation of Foreign Currency

Liability in foreign currency is converted into Pakistan Rupee at the rate of exchange prevailing on the balance sheet date. The exchange difference due to fluctuation in exchange rate is charged to plant and machinery.

Staff Retirement

Gratuity is payable by the mills on resignation, retirement or termination service for any reason other than misconduct.

Tangible assets

1.Maintenance and normal repairs are chargedto profit & loss.

2. Gains/losses on disposal of assets, if any, are taken to profit & losses account for the year.

3. Freehold land is stated at appreciated value.

4. Depreciation is calculated on reducing balance method at rates. No depreciation is provided on assets in the year of sale while full years depreciation is charged in the year of purchase irrespective of the date of purchase.

5. All other assets are stated at historical cost less accumulated depreciation except

Plant and machinery, which also includes the exchange difference, in respect of

Foreign currency loan provisionally, utilized for the acquisition of plan and machinery.

Stores and spares

There are valued at average cost

Stock in Trade

Bases of valuation are as follow;

1. Raw material at average cost

2. Work in process at estimated manufacturing cost.

3. Unpacked yarnat manufacturing cost.

4. Finished goodsat lower of cost or net realizable value.

5. Wastes

at realizable value.

Revenue reorganization

Local sales are recognized on dispatch of goods to the customers Export sales are recognized on issue of bill of lading.

The above loan is secured against:

1. Personal guarantee of all Directors of the company.

2. First equitable mortgage charge on fixed assets of the company.

3. Pledge of raw material and yarn by protection of stocks and stores.

4. On short term loans rate of mark-up is ranging from Rs.0.42 to 0.46 Tepee thousand per day.

Chapter # 5

DEPARTMENT OF FINANCE AND ACCOUNTING Department of Finance:

Tribal Textile Mills has its own Finance Department at its Head Office. Group Finance Manager heads this department. This department raises funds from various sources to fulfill the financial requirements of this Mill. Group Finance Manager involved in main functions of financial planning, future forecasting of financial needs, raising funds. Group Finance Manager has a key role in the Mill because financial policies usually affect marketing, production and other departments of the Mill. All the concerned Managers and Officers are usually involved in the decision is making process to avoid and financial hardships.

Finance Department Functions:1. Future forecasting of financial needs.

2. The financial planning.

3. Find out different sources of obtaining funds on feasible terms and conditions.

4. Carry upon negotiation with creditors.

5. Effective utilization of funds.

6. Procurements of funds.

Three Column Cash Book.

Petty cash book. Voucher Record book. Bankbook. Journal Ledger. Now we explain these account books briefly. Three column cashbook First of all vouchers are made for any receipt or payment, either it may be through bank or in the form of cash. Then these vouchers are posted in three-column cashbook. Three-column cashbook consists of two major heads receipts side and payment side. On receipt side there are two columns cash and bank, while on payment side apart from cash and bank column there are several other columns of general heads of accounts such as entertainment, stationary, freight, general expenses, car running and others etc. After making any recovery its entry is made in receipt side according to the mode. If the recovery is made in the form of cash then it is posted in receipt cash column and if the recovery is made through bond then it is posted in the particular bank column through which the transaction is being made. While on the other hand on the payment side double entry is made for record. If the payment is being made in cash then the credit is given to the cash column and double entry is made on the expense column.

Petty cash book: Petty cash book is prepared by Account Office for recording all small sum of money with cashier to meet all small expenses such as Postage, Telegrams, and Stationary and office sundries. For the payment of petty cash expenses, Petty cash fund is credited. When this fund is utilized, it is recorded on the credit column of petty cash book Voucher Record Book Voucher record book is a register prepared by the account office for the purpose of recording vouchers. All vouchers are recorded in this register. These are many columns containing voucher number, date, cheques, invoice number and amount of voucher etc. Bank Book.Tribal Textile Mills deals with different bank for remittance of cash from Head Office and for payment of custom and excise duties to the government. To keep record of this payment, a register is maintained, called bankbook. Journal Ledger:

This ledger is used for making original entry and is prepared by the Account Office. This book is used for recording of the opening, closing and adjusting of the entries. When the transaction is made in the cashbook after that entries are made is journal ledger. Journal ledger is the ledger in which all the heads of accounts are found and at the end of the month trial balance is made from the balances of these heads of accounts. If the trial balance is found incorrect then there may be possibility of error in journal ledger and if the trial balance becomes correct then the correctness of the journal ledger is authentic. This is the whole accounting system of the mill and the Menno Group of industries Ltd. Moreover, this system is computerized which makes it very easy, simple and accurate one.

These books are maintained throughout the year and at the end of the year accounts are finalized from these books and financial position of the company becomes clear. At the end of the year auditors of the company audit these books and submit their report called annual report.

SALES POLICIES, PRACTICE AND PROCEDURE:

Success of any organization depends upon its sales volume. Main objective of its organization is to also increase sales and capture new markets. Sales policies may change from time to time for the betterment of company. The company policies are channel of distribution maximum output in the market with marginal profit, reasonable pricing policies and market arrangements regarding the advertisement and sales promotion technique. Sales procedure of the mills is very simple, sales are done through agents. There are two agents of Tribal Textile Mills in Faisalabad yarn market.M/s Shamas Brothers (Pvt) Ltd & M/s Charag (Pvt) Ltd. First of all daily bargaining is done by the General Manager (sales) on telephone about rates. When the rates are settled, then the agents make the payment in advance through telephonic transfer at bank.

After confirming about payment the delivery is made to the agents.

PROCEDURE OF RECRUITMENT: According to prevailing procedure of recruitment, when the job is created in the Mill no advertisement is made for this vacant post. Usually existing workers play the role advertisers as they aware the concerned persons about the vacant post. The interested candidates contact with personnel office for their employment, the personnel office issue blank application form for filling up and after necessary sorting interview is conducted by the appointment committee, which consists of three members. These members are Resident Director, Personnel Officer and Department head in which the job is vacant.

During interview the candidates are examined by asking questions regarding their qualification, experience and background. On the basis of better performance, suitable candidates are selected and if the selected candidate satisfies his superiors with his performance then he will be considered permanent on that post after three month automatically.

PURCHASE PROCEDURE:

In Tribal Textile Mills, purchase of raw material is done through G, M Head Office. At least 80% of raw material is purchased from the ICI Pakistan Ltd. While remaining 20% is imported from Taiwan, Japan or Korea. Month wise consumption schedule is provided to the ICI Pakistan Ltd. for six months. According to this schedule ICI Pakistan dispatches the goods and the payments are made through bank, according to the delivery received.

Other packing material, spare parts and consumption goods are purchased through purchaser.

Chapter# 6

PERSONNEL ADMINISTRATION DEPARTMENT

Objective of the Personnel and Administration

There are following objectives of personnel administration:

1. To select right man for the right job.

2. To pay fair wages to the employees.

3. To keep of the whole record of employees.

4. To receive order and policies from the Head Office and act upon them.

5. To select right man for the right job.

6. To pay fair wages to the employees.

7. To keep of the whole record of employees.

8. To receive order and policies from the Head Office and act upon them.

This department is headed by Assistant Manager who is also in charge of the Account Section of the Mills. Assistant Manager controls all the activities of the mills through this department according to the rules and regulation received through Resident Director. He perform the following functions:

1. To maintain good relation with outside public.

2. Good relation with Government and other concerned Mills.

3. Administration of the employees in the mills.

4. Administration of the resident area of the mills.

5. Dispatching of goods according to the order of Head Office and pay excise duty on that goods.

6. Receiving order from the Head Office and implementation of that order.

7. Administration of the resident area of the mills. Giving information daily about the production and other activities to the Head Office.

8. Receiving of raw material from production department and payment of the custom duty on the raw material.

Administration Department consists of the following Sections:

G.M HEAD OFFICE

General Manager is the main controller and unit in charge posted at the

head office. Resident Director other senior officers at head office and at

mills are responsible to General Manager and he himself is directly

responsible to top management of Monnoo Group Of Industries. He discusses

all the affairs regarding manufacturing sales, and purchase with the top management and informs them about the latest position of the Mills.

He takes approval of purchase and expenses budget from the top

management. He can sale the finished goods with out consultation of other keeping in view the market conditions.

He approves expense vouchers. He pays visit to mills fortnightly for

inspection of mills. During his visit he checks all the departments, checks working conditions of the mills and records of administration wing.

He gives instruction on the spot if he find some deficiency. After checking

he prepares visit report for the review of top management.

HEAD OFFICE:

Mills head office is situated in Lahore on Montgomery Road. All the major decisions are made at head office, regarding manufacturing, sales, purchase and finance. Two executive meetings are conducted weekly for decision making.

Various policies, issues or problems are put before the board. For making

proper decision upon these issues the board members hold discussion to know

pros and cons of that problem. Unit in charge of Tribal Textile Mills is posted

at head office, He looks after sales, purchase and account sections. There is strength

of six staff members under him. All the six members are responsible to unit in charge. The duties of head office staff are as follows.

ACCOUNTANT: Accountant is considered the second in command of the unit at head office. He performs the following duties.

1. Checks daily account transactions.

2. Finalizes the account of the company monthly and yearly.

3. Conduct audit at the end of the year.

4. Attends the executives meetings along with General Manager.

5. Deals with auditors during audit and replies their audit pariahs and provides them all the required information.

6. Settles the income tax affairs of the company. Provides various information statements required by Government Institutions as well as top management.

ASSISTANT ACCOUNTANT: Assistant Accountant is the subordinate of the accountant. He performs the following duties.

1. Prepares all the vouchers.

2. Feeds all accounts transitions in computer.

3. Prepares sales invoices and dispatches to the concerned parties.

4. Prepares the cheques of various parties to whom payment is being made.

5. Maintains the sales tax record of the company. Performs all bank duties such as pledging, depositing, drawing of cash and making arrangement of T.T.

PURCHASER

Purchase is another important personnel of the company, apart from the purchase of raw material all the purchases of the company are done through purchaser.

Every month purchaser receive indent, which is prepared from the requisition

of all the departments. All receiving purchase indents purchaser contacts with

various parties, for collection of goods samples and quotations. After complete satisfaction about the rate and quality of goods purchaser places order to the qualifying

parties for supply of the goods to the mills. After necessary verification by the mill authorities, regarding quantity and quality of the goods supplied, the purchaser makes the payment to the parties from the account section. If the mill authorities for some reasons reject the goods then the purchaser returns the goods to the concerned parties and searches for the alternate supplies.

PURCHASE ASSISTANT: Purchase Assistant is the subordinate of purchaser, his duty is very hard he visits the market and takes delivery of goods from the concerned parties to whom the order is placed by the purchaser. He examines the goods according to the demand and sample after complete satisfaction he takes the delivery of goods and makes arrangement for sending to the mills. Payment is also made through Assistant Purchaser.

MILLS FUNCTION: There are three wings of mill organizational structure; all the three wings are totally controlled by one lien authority called Resident Director. First of all I shall explain

the role of Resident Director in the whole organizational setup

RESIDENT DIRECTOR Resident Director is the lien authority of the mills, which is appointed by the top management to run the mill management under the supervision of top management.

He controls the whole internal and external management of the mill with help of various personnel as mentioned above in three wings of organization structure. At mill all the activities are performed with consent Resident Director. He makes decision regarding appointment, termination, production, selection and rejection of goods and raw material and other affairs of administration. He is the final approving authority at mill without his recommendation no document or report can be forwarded to the head office. Top management recognizes his authority and top management has full confidence on him. In short Resident Director is the key post for running the mills successfully.

FUNCTIONS OF ADMINISTRATION WING: Administration wing works under the indirect supervision of resident director. There are two main posts in administration department one is called Assistant Manager and other is called Labor &Welfare Officer who runs whole administration according to the instruction of Resident Director. I would like to explain the responsibilities and powers of these two important posts one by one.

ASSISTANT MANAGER: Assistant Manager is the second man to the Resident Director in the administration wing. Mr. Muhammad Safdar is the Assistant Manager of the mills. He controls the external affairs of the mills. He deals with various Govt, Department, banks and other institutions. He holds his own office. He also controls all the finished goods, raw material, salvage go downs with the help of his subordinates. He prepares the monthly budgets, stock taking report and an expense report and controls the financial affairs of the mills. He checks and signs all the documents and reports before going to the resident director. He is also responsible to the top management in certain affairs. In his office there are following staff members.

1. Office Assistant

2. Cashier Excise Office:

Now we explain the functions of above-mentioned posts.

1. OFFICE ASSISTANT:

Office Assistant is the senior clerk of administration.

He performs the following duties.

1. Maintains the office record.

2. Maintains the excise and custom record.

3. Inspects all the god owns such as finished good, raw material, salvage etc.

4. Prepare all the daily office reports such as message report raw material report, salvage report, weight report, and abstract report.

5. Prepare the dispatch documents.

6. Prepare statistical reports at the end of month.

7. Prepare daily mail and dispatches it.

8. Does all the office typing work.

9. Communicates all the daily information regarding production, sales raw material to the head office.

CHASHIER: Cashier is the important personnel of the administration office. He performs the following duties.

1. Prepare the daily cashbook.

2. Prepare the record of advances and loans.3. Make payments of expense, salaries, gratuity, over time and advances.4. Drawing of cash from bank. 5. Reconciles daily cash transactions.

3.EXCISE OFFICE : Deputy Super dent of Excise and customs is the incharge of this office. He checks the quantity and quality of the raw material and lived custom duty on the imported raw material. This custom duty is deposited in the Bank. After paying the custom duty, this raw material can be used in the production process. If custom duty is not paid to the government the material cannot use in the production. Deputy Superintendent appraised imported goods and paid custom duty within 7 days after appraising appropriation account of the Government. The rates of custom duty for Polyester is 30/ and for Viscose Rs 45/ per kg.

When goods are produced and dispatched to the sales agents, excise duty is paid on the dispatched goods. When excise duty is paid to the Govt. Deputy Superintendent of Excise and Custom signed on the Excise Pass. This Excise pass is an evident of the payment of excise duty.

In Excise Office excise clerk perform the following duties.

1. Dispatches the finished goods according to daily sales to the concerned parties.

2. Issues the raw material to the mill according to the mill demand.

3. Receives finished goods forms the mill and transfer into the EB-4 go down finished goods go down after proper numbering.

4. Maintains and looks after of all the go down such as finished goods, raw material, salvage and bonded warehouse.

LABOR AND WELFARE OFFICE:

Labor and welfare office is the incharge of this office. This office deals with labor affairs such as maintain labor record, recruitments and selection of employees, record of the attendance of the employees, record of benefits and service provided to the employees etc. Labor officer performs the following duties.

1. Solves the problems of the workers like accommodation, mess, medical and the job problem etc.

2. Fixes the salaries of the personnel after consulting RD.

3. Control the internal management of the mill according to the rules and regulations laid by the Government in the labor Laws.

4. Appoint all type of personnel as required by the organization.

5. Provides various information and statement as required by Govt: institutions and head office.

6. Checks and sign the whole record of the personnel office.

7. Takes care of the workers benefits like E.S.S.I, E.O, B.I and Group insurance etc.

8. Prepares 100% wages and salaries of the mill.

9. Compiles the strength of the mill.

10. Issue charge sheets to the quality workers.

FUNCTIONS OF LABOUR AND WELFARE OFFICE:

Labour and Welfare Office have a staff of five members one labour clerk and four timekeepers. With the help of these personnel, Labour and Welfare runs his office. Labour office Clerk is the senior clerk of the personnel office. He performs the following duties.

1. Prepares the cases of workers regarding E.S.S.I and E.O.B.I.

2. Prepare the daily overtime.

3. Prepares the gratuity and leave salary vouchers.

4. Prepares personnel files of the workers.

5. Fill up the appointment forms of the workers.

6. Maintains the leave record of the workers.

7. Maintains the whole record of the personnel office.

8. Maintains daily attendance sheet.

TIME OFFICE:The incharge of this office called Head timekeeper. The duty of the time office to prepare attendance report daily and this report is given to the labour welfare officer. There are three shifts working in the production department of the mills. Every shift has a separate timekeeper. It is the duty of this office to see what is total strengths of worker in the production department. How many are absent and how many are present, how many are on weekly rest, leaves and overtime. It prepares daily attendance report and at the end of month attendance of every worker is recorded on the pay sheet.

This office also provides different cards to workers. For every shift one colored card is given to the workers. The attendance, weekly rest and leave of each worker is to be written on that card. This is done so I order to satisfy the workers and maintain the record of workers.

SECURITY OFFICE: Security Officer is the incharge of this office. It is under the direct control of administration. There is qualified and trained staff in it. The main responsibility of this office is to protect the organization from outside dangers. The staff of the security office consists of one head watchman eight watchmen. Two watchmen always present at every shift in the mills. At night one watchmen presents at staff colony and one at labour colony. The duties of Security Officer are as follows.

1. To secure the organization from outside dangers.

2. To maintain peace in the mills.

3. To look after the premises of the company.

4. To checks the account of the company.

5. To check the employee when coming in and going out from the mills.

6. To check the employees at nighttime in the production department whether they are working on their job or Sleeping, if they are sleeping on their work time to give the reports to their relative officer.

7. To have the complete record of each workers character.

TRANSACTION FUNCTION:

First of all the requisition of goods is received from all heads of department according to their needs at the last week of the month which are duly approved by the RD. After this store incharge prepare a purchaser indent from these requisitions for the new month, which is duly checked by Assistant Manager and then signed by the R.D and this approved purchase indent is sent to Head Officer for purchases for the new month. At Head Office Purchaser Officer make purchases according to the indent and sends all the goods along their bills to the mills in the first week of the month by a van or a truck. When the goods reach in the mill first of all entries are made in the inward register by security incharge and then handed over to store in charge, who checks the goods with the purchase indent and their bill.

After doing satisfaction store incharge put the goods in their respective bin and makes entry on the bin card and then prepares goods receipt notes for every bill.

Assistant Manager checks these receipt notes and signed by him then these receipt notes are finally signed by Resident director. Then these receipt notes are sent to head office for payment to respective parties. Before sending the receipt notes to head office data entries are made in the mill computer. Each and every received note is posted in the computer. On the other hand whenever there is need of any spare part or any other article in any department. The head of department writes down a store issue note for the said item that is needed and brings this issue note to resident director. For approval that makes inquiry from the said head of department what is the cause of replacement of these spare parts or why these articles are needed.

After doing satisfaction he signs the issue notes. Then this issue note goes to store incharge who issue these items according to the issue note and make entry on the bin cards of respective items. Then these issue notes are posted in computer. At hand report and department consumption reports in drawn out from the computer.

Stock in hand report is checked by the store incharge properly with the physical stock available in the General Store at the end of the month, which helps the management in making next month demand which parts and article are needed or not On the other hand from the consumption report management can control the excessive and unnecessary consumption of every department.

Promotion and lay off

Promotion is necessary in order to motivate employee to the work.

In this mill, it is neither based on exclusively upon seniority nor on merit. There is no layoff in this mill because there are thirteen textile mills working under the control of Monnoo Group Of Industries .

Wages Salary Administration

The wages and salary administration is concerned with the establishment and implementation of sound policies and methods of employees compensation . The

Chapter # 7

PROBLEMS AND SUGGESTION: The various problem and suggestion are discussed are as follows.

1. Unqualified Administration Staff:Except Resident Director, administration and Lab staff all other personals are unqualified, though they are experienced, but they do not have necessary theoretical background, so it is why their performance is not update standard of course experience makes a man perfect but lacks initiative and creativity. Therefore, qualified persnals should be recruited.

2. Lack of knowledge and Training:

All the workers are sincere and hard working but there is lack of scientific knowledge and skill in them, which also affects the efficiency of the Mill. In many departments most of the incharge are promoted from the lower ranks with in the department. They have never seeker special training from recognized institutions and nor the organization have given them the opportunity to seek training. There is the waste of resources only due to lack of proper training and lack of knowledge.

3. Lengthy process for purchasing general store goods:

There is a very lengthy process for purchasing general store goods. For receiving a spare part of a production machine or any other items, more time is consumed between ordering from the Mills and receiving from the Head Office of the company. This procedure should make easier and short time consuming.

4. Wages are low:

Tribal Textile Mills is a financially strong enterprise but still wages rate is

very low. Minimum wage rate is Rs: 4000. P.M and that is very low in difficult time. Workers are little bit dishearten they do not work with full interest. This cased reduction in their efficiency.

5. Absent of Accounting Department and Cost Section:

Accounting department and cost section of the Mills are working at Head Office. Due to this, annual financial statements are not prepared at the Mill. For knowing the efficiency of the Mill there are necessary. There should be a qualified accounting staff in the Mills that prepared cost of the manufactured goods and record in accounting books.

7. Lack of Transportation Facilities:

There are no transportation facilities in the Mills. Mill is situated at 8 k.m. For away from city. Workers are not finding transport at every time towards the Mill. The Mill should provide transport facilities to the workers.

8 Extension of the Mill:

Demand for product is increasing every year, but the Mill production is constant. In our country fourteen Mills are working under the Menno Group of Industries. It but into this place only one project is working. The company should establish another project at this locality to fulfill the demands of the customer.

SUGGESTION:

1. Modern instruments of Laboratory should be purchased.

2. To improve the willpower of the worker and give various facilities such as allowances bonuses, Medical, Transport and good working environment.

3. Forman and Supervisor should delegate their authority properly to press the workers to perform their duties properly and regularly.

4. For the maximization of profit, it is necessary for the top management to control the scare liability of cotton.

5. To employees evaluation system should be improved.

6. To success of every organization is depending upon skilled and qualified managerial staff.

7. Good communication system is considered lifeblood for every organization.

Chapter # 8

DEPARTMENT OF PRODUCTION

Tribal textile Mill Ltd, is basically a manufacturing concern which produce industrial goods that are use are raw material in textile Mill and than sold through agent in the market and use in textile industry.

Production department is the origin of all activities in a manufacturing concern. The head of this department is called Technical Manager who looks after the quantity and quality of the production. He is responsible for the maintenance of machine. If there is any sort technical fault he helps the mechanical, foreman and fitters by giving them technical instructions.

FUNTTION OF TECHNICAL UNIT:

Technical wing is also called engineering wing because it consists of those personnel who have engineering know how. There is separate workshop for each department besides this there are two main workshop called electrical and mechanical workshop. Which deal with the whole Mill and sub workshops too. These all the workshop work according to the instructions of RD, the main object of all these workshops is to remove the technical faults and keep the machinery into running conditions. In other case if there is brake down due to the technical faults then the Mill will suffer heavy loss of production and quality. So, the technical wing of the Mill is active to remove this draw back.

Both main workshops are controlled by engineers called electrical and mechanical engineer while other sub workshops are controlled by foreman besides this there is sufficient technical staff in each workshop like head fitter, Assistant fitter, Helpers etc. These all the personnel are fully trained and have sufficient experience of their related fields.

But in main workshops electrical and mechanical there are different types of personnels related to different fields. In mechanical workshop there are turner, black smith, welder, tinsmith, carpenter, pipe fitter and in electrical workshop there are motor winders and electricians.

There are following workshops established in Tribal Textile Mill.

MAIN WORKSHOPS:1. Electrical Workshop

2. Mechanical Workshop

SUB WORKSHOPS:1. Blow Room.

2. Carding.

3. Drawing.

4. Simples.

5. Ring.

6. Cone Winding.

1.BLOW ROOM:

The starting department of Mill is called blow room. The function of blow room is as follows.

1. Opening raw material

2. Mixing raw material

3. Cleaning raw material

In this section polyester and viscose are used as raw material. There is manufacture from these two items. Cotton is not used in this mill. Know in more detail the raw material comes in form of bales and opened by workers. This material put into a breaker that automatically weight this material and mix this material at the ratio of 80% polyester and 20% viscose. Five breakers are installed in this department. The total capacity of this department is 37800 pounds per day. The total strength of this department is 17 workers.

CARDING:

The second department of this Mill is called carding. The function of this department is opening, cleaning and silver formation. The total number of machine is thirty two. The total capacity of per machine is 4300 pounds per day. This is the most important department of the Mill. This is very complicated and sensitive department. The total efficiency of the whole Mill depends upon this department. The low efficiency of this department can disturb the whole Mill function this will result in low quantity of output and bad quality of product. That is why the Mill management is much care about this department. The total number of workers, which are engaged in this Mill is Fifteen per shift. The workers are called card tenets and can feeders etc.

DRAWING:

The other department of the Mill is called drawing, the function of this department is missing, stating and paralization. In this section, thick and thin tread is remade. When the silver came from carding it is not straight and parallel. This becomes straight to some extent. Here silver brought in comes from carking. Fifteen drawing machines are working in this section the total strength of this department is ten per shift. Its workers are called drawing tenets. Drawing production is measured in pounds. The total capacity of this department is 95000 to 100000 pounds day.

SIMPLES:

The next drawing department is called simplex. The function of this department is stating, paralization and rowing formation. In this section sliver converted into rowing and rowing is slightly twisted than the sliver production of drawing brought to simplex in canes. Seven machines are working in this department. The total capacity of each machine is 6000 to 7000 pounds per day. The total strength of this department is ten workers per shift. Workers of this department are called simples tenters and doffers etc.

RING:

This is the primary department of the Mill. The function of this department is to spin the yarn. When rowing came from simples it is converted into thread in the ring. Then this tread is twisted and winds a bobbin. Thirty Four machines are working in this department having 600 spindles each machine total number of spindles is 20400. The total Capcityof this department is 11.50 Lbs per spindle per day. It makes 18500 kg per day. The total strength of this department is 243 workers. The workers of this department are called 4 Seders. 3 Seders, doffers trolley man, and floor cleaners, rowing feeders, the different qualities of thread can be produced in this section. This Mill produced two types of tread. One is call 24 thread and other is called 34 thread.

CONE WINDING:

Come winding is the last and final stage of production. The function this section is finishing and winding of yarn. When tread is made in made in the ring it is brought into cone winding section. In this section tread is wind on paper cones and then packed in bags. There are two types of machines are installed in this department auto cone machines work automatically while manual winding is operated with the help of personnel. The total strength of this department is 204 workers. The workers of this department are called auto winders,cone winders,cone checkers, and bobbin boys floor cleaners etc. Total capacity of this department is 42000 pounds per day. Here is the end of manufacturing process. In this section product takes the final shape and turns into finished goods. This product is packed into different type of bags. For national market it is packed in separate bags and for international market it is packed in separate bags.

PACKING AND ITS OBJECTIVE:

The product comes from cone winding department to the packing room in the shape of finished goods. Each cone is put into the separate polyphene bag and then packed in to the polypropylene bags.

The packing is done according to the nature of the products. In case of the products export to foreign countries different type of package is used from those saled within the country. The product are folded or rolled in such a way that label can be easily read and the customer can easily examine quality of the product. The label contains brand, trademark, price and total number of yarn, weight of the package and name of the mill and company and some other information related to the product. The objective of packing of the product is as follows.

1. To make the product attraction.

2. To protect its one route from manufacturer to customers.

3. To provide required information customers.

4. To identify the product from competitors.

MARKETING DEPARTMENT:

A well-organized marketing department is required by every modern organization. A business can compete only if its sales performance is adequate. The modern industry cannot flourish in the absence of such an established marketing department. This department plays very important role in the success of a business. The objectives of business archived through the sales program. Tribal Textile Mill has a well-organized marketing department. This department controlled by marketing manager. This department performs the following main functions.

1. To dispose off the product at predetermined prices.

2. To convey information regarding market demand to the top management.

3. To convey information regarding prices and competition to the top management.

4. To send information regarding sales and inventory to the top management and accounting department.

5. To raise sales through visits to the market as well as to bring suggestions regarding changes in product of desired to the top management.

QUALITY CONTROL LABORATORY:

Quality Control Laboratory is very necessary for receiving the best quality of the product. For this purpose Tribal Textile Mill has a modern and well-equipped laboratory which analysis the production of the Mill. The result of analysis is presented to Mill Manager who has specialized in textile fields. The result is presented in the form of Laboratory test report. R.D checks this report and removes the defects in the production. The laboratory of Tribal textile Mill is equipped with latest and computerized instruments, which give fair and true report of each stage of product. Following instruments are installed in the Mill laboratory.

1. Auto Sorter

2. User UTI

3. Yarn strength tester

4. Lee formation machine

The staffs of Laboratory consist o f laboratory incharge, Laboratory assistant, Uster Operator,warping clerk and warping boys. The staff member works in analyzing the production of factory.

Laboratory also plays very vital role in the production function because quality is the part and parcel of product and therefore without quality there is no concept of marketable product.

ORGANIZATIONAL CHART.

ORGANIZATIONAL STRUCTURE OF PRODICTION DEPARTMENT

Resident Director

Technical Manager

Deputy Spinning Manager

Engineer

Foremen Lab Incharges

Shift

Incharge Electrical

Mechanical

Head jobber Electricians

Head Fitter Laboratory

Assistant

Jobbers Electricians Fitter Warping

Checker

Working Boys Helper Assistant Fitter Warping

Motor Winders Helpers

Chapter # 9

STORES ADMINISTRATION

The function of stores is to receive keep and issue the items needed by various sections of production department. Store Incharge controls stores administration. There are three types of stores in the Mill, which are as under.

A. Procedures of receiving general store goods from Head Office:

There are many steps involved in getting required items from Head Office and this process is introduced to check the leakage or wastage of raw material. First of all the production department sends demand of various items to Resident Director. R.D verifies the whether the demand is genuine or not. If it is feasible then the R.D sends this demand to the store incharge for provision of the same to the concerned department. This demand is written on a duplicate book. One copy of this is kept in his record and one copy is sent to the store incharge. If demanded items are present in the store, the storekeeper issues this item to the concerned section.

If the item is not present in the store, the store incharge demands for that item on indent slip and this slip is presented to the R.D. He signs on this lip and then sent to Head Office along with sample card of the spare parts through assistant.

Spaceman of Indent Card:

INDENT CARD

No: ------------

Tribal Textile Mill Ltd.

Dated: ------------

Tank Road Dera Ismail Khan.

S.No

Description of GoodsDepartment QualityDemand Value

Signature: Signature:

Store Incharge:

Resident Director:

The Head Office purchases samples of required items sends to Mill. Store incharge informs the concerned department that the demanded items have been received from Head Office. The section, which required items check these samples whether, they are according to their requirements or not. If these items are according to their requirement, the R.D gives the order.

Head Office sends the required items along with their bills and these items are recorded by store incharge on store receipt note. Then this is recorded on the store-received ledger. From store received ledger this item recorded on the Bin card. In store Bin cards are attached with every type of item in every bin in order to check each item easily. On every bin card items received from Head Office or purchased from local market are entered with their total number and to who issued and balance amount kept in the store. Total number of bin in store is 107.

Specimen of Bin Card:

BIN CARD

Tribal Textile Mill Ltd.

Dated: ----------

Tank Road Dera Ismail Khan. Ledger folio: ----------

Date:Received:Issued:Balance:Initial:

Signature:

Store Incharge:

Head Office sends goods to Mill according to the store budget maintained yearly.

B. Local Purchases for General Store:

Store I/c purchases the articles that are available in the local market and checks all these articles and records them on store receipt register. If there is urgent requirement then this can be purchase by the local market . R.D is authorized to purchase up to Rs, 10000 monthly.

C. Procedure for issue of goods from Store:

Every section of production department has a book of requisition slip that contains requisition slip in triplicate. If they required anything, they can demand that item on requisition slip duly signed by the head of that department. The storekeeper issues the required item after recording it in daily issue register. In daily issue register, no of indent card or cash memo of the demanding section or department is given with date of that demand. After this the storekeeper records all those items in issue ledger and balance ledger.

STORE REPORTS:

1. Daily Store Issue Report:

This report is maintained daily and kept in a file. In this report goods issued to every department and balance amount of that goods are given. This report is presented daily to Assistant Manager and R.D for verification.

2. Purchase Report:

This report is prepared monthly. The value of all items placed in store is recorded in this report at the end of every month. This report is checked by assistant Manager and then sent to the Head Office.

RAW MATERIAL STORES:

1. Bonded Warehouse Store:

When goods are imported from outside the country, a custom duty is levied upon them. A large portion of the raw material used in the production department is imported from the foreign countries. This raw material is imported from Japan.

When Mill the Mill is bound to pay the custom duty within 7 days receives goods, however if Mill is not able to pay custom duty on the goods received, Mill requests for a bond with the Government. This bond has grater value than amount of custom duty. This bond is promise by the Mill to Government that the due amount will be paid to the Government with in promised time. The clearance of custom, the Mill cannot use goods and this raw material is placed in bonded warehouse. This warehouse is under the control of the government.

2. Duty Pay Store:

When custom duty has paid to the government, then the material of bonded warehouse comes in duty paid store. In this store only custom duty paid raw material is stored.

For financing purposes, this material is pledged to the bank. When Mill want to lend money from the bank as a loan, bank keeps security against this loan. Value of inventory is greater than the amount received as a loan from the bank. Usually bank gives loan 80% of the value of inventory. If when Mill pays principal amount of loan along with interest, then it can be used in the process of production.

FINISH GOODS STORES:

1. EB 4 STORES: Government levied duty on those goods, which are produced in the country. When products are finished these are kept in EB4 store. This store is under the control of excise department; goods of this store cannot be brought outside the Mill for sale until payment of excise duty.

When goods are dispatched to the sales agent, Mill plays excise duty on these goods. When Mill pays excise duty, Deputy Superintendent of excise and custom signs on the excise challan. Excise challan is evidence that excise duty on the goods dispatched has been paid. In this challan all description of goods their type of quantities amount of excise paid to the government etc are recorded. This duty is deposited in National Bank of Pakistan. Three copies of challan are prepared, one copy to driver, other sent to the Head Office of the Mill and third copy is keep in the office record of the Mill.

2. R.G. Store:

All finished goods, which pledge to the bank are placed in this store. When market conditions are not suitable and Mill requires money for financing their assets these are kept as security by the bank for lending loan to the Mill. Usually bank gives loan 80% of the value of inventory and this is the basic term and condition of the loan set between the Head Office and Bank