CBL reprt of internship

7/30/2019 CBL reprt of internship

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WITH THE NAME OF ALLAH

MOST BENEFICIAL, MERCIFUL

AND A CREATOR OF ALL

KINDS OF RESOURCES


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PREFACE

One of the secrets of a successful economy is a well developed and well runfinancial sector. The existence of money and other financial assets facilitates theallocation of economic resources where they can more profitably be used. If wereally want to understand how our economy works, it is necessary for us tounderstand how the use of financial assets leads to the better use of real assets.Understanding how the financial sector works and how it is related to the realsector is why we study finance.

Many important personal decisions are financial. Paying for a homeor an automobile are two very large examples, but even day-to-day decisionssuch as planning a budget, opening a checking account, or making investmentscall for a knowledge of finance.

There are many firms that specialize in things financial. The primaryconcern for most of these firms is pooling the funds of those who have a surplusof funds and invest it in those firms that have a need for the funds.


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ACKNOWLEDGEMENT

I thanks to ALLAH Almighty, the most beneficent and merciful to everyone, whogave me ability and courage to successful, complete this work, because I amnothing without his blessings for me.

I wish to express my love and obliged for my mother for all those nightshe spent praying for my mission, and me. My motherwhos rising gave mecharacter and a compassionate heart.

Special thanks to below mentioned personalities at Crescent Bahumanltd;Mr. Mukhtar AhmadMr. Asad Ullah KhanMr. Salman AhmadMr. Javaid AhmadMr. Rizwan AliMr. Kashif Munir

Mr. Aamir NadeemWho have contributed and allowed me to participate in all kinds ofprofessional development.


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DEDICATION

This project is dedicated to the greatest man in the world that show us the rightpath and Who is the great benefactor of the mankind that is Holy ProphetHazrat Muhammad (PBUH) and to parents and Honorable teachers. And Tothose people who love Humanity.


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INTRODUCTION

Theopportunity of completing the BS.COMMERCE (HONS), provided to me GCUNIVERSITY FSD, is a great honor for me and many other students of samekind. All though I faced a lot of problems regarding availability of reference booksbut by the Grace of Gods help and by sheer dint hardworking I have qualified allthe credit courses.

Having completed my internship report, now I am on the verge ofreceiving my degree, for which I have long aspired.

During my internship, I have tried to probe into all the aspects ofmarketing specially communication with in the organization and directly outsideforeign customers.

INSHALLAH all the knowledge gained through theoretical andpractical aspects of study will guide me in my practical work experiences at job infuture.


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Crescent Group Chronology(Crescent Groups 60 Years Chronology)

The Crescent Group (CG) has been in business since the beginning of twentieth

century. They are known for their strong business ethics and their highlyprofessional management, for which they command respect from the local andinternational business community. With its widespread presence, strongbackground and management strength, Crescent Group is well positioned tocontinue expanding rapidly by taking advantage of the liberal and improvingeconomic environment in Pakistan. They have survived and recovered fromturbulent political situations and economic crisis spread from the partition of thesub continent and Pakistans history.The diversity of The Group is reflectedthrough its independent operating companies operating in diversified businesssectors all over Pakistan. Among them are some of the companies that arepremiers and market leaders in textiles, jute, sugar, engineering, investment,

banking, insurance, leasing sectors etc.The Crescent Group employs over17,000 people and has revenues exceeding Rs 20 billion from its few of itsprominent companies. This constitutes over 0.55% of the countrys GDP andover 1% of the market capitalization of Pakistan.The consistent growth of theGroup has resulted in numerous joint venture partnerships with international

companies desiring to invest within the economy.Crescent Family has a generalreputation of never Crescent Group has the slogan of The people who care forpeople" transferring their money abroad. Crescent family particularly has thereputation of being truly rooted and entrenched in the Pakistani Soil and isconsidered to be a conscientious tax payer.An article in Weekly Friday Times inthe first week of April 1993 described Crescent as "one of the oldest, largest and

most distinguished business concerns in Pakistan, an exemplary tax payers andinvestors of every penny earned back into their business of the home country".Presided over by eldest member of the family, Mr. Mazhar Karim, the Group hasover twenty working members and can be truly called a joint venture of uncles,cousins and nephews.This Chiniot sheikh family has lived up with quite awonderful reputation, bearing an excellent record with its creditors throughout itsbusiness. Men running Crescent do not have to make contacts, for the privilegecomes to them naturally


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Evolution of the Group

Pre Partition Era:

The history of the group dates back to 1910 when Mr. Shams Din of Chiniot andhis four sons Mr. Amin, Mr. Bashir, Mr. Fazal Karim and Mr. Muhammad Shaficame into business with a tannery at Amritsar. By the time Pakistan was born,they had offices at Madras, Jalandhar, Calcutta, and Delhi, and were running the

largest leather business in India.

Post Partition Era 1950s:

The period of 1950s for Crescent Group was dominated by its focus upon thetextile sector. After migrating to Pakistan, the Crescent family struggled to regainits strength and growth pace, which it had left back in India. Crescent family wasallotted an industrial unit sprawling over 125 acres in Faisalabad, in lieu of theproperty left over in India, which was to become the spring board of their growthand diversification.

After the creation of Pakistan, three of the above mentioned fourbrothers returned to the native land and in 1951, incorporated a trading companyMuhammad Amin Muhammad Bashir Limited for export of cotton and imports.Mr. Bashir settled in Karachi, Mr. Amin managed the operations from Lahorewhile Mr. Muhammad Shafi worked at the ginning factory in Sargodha.

After migrating to Pakistan, the family took advantage of the incentives offered bythe government for setting up industries and established Crescent Textile MillsLimited. The 1950s also saw the establishment of the Crescent Sugar Mills whichwas later expanded through the addition of a distillery plant. In the beginningCrescent Sugar was operating as a unit of Crescent Textile Mills Limited.

However, after commencement of the operations of distillery, unit it become aseparate entity and got listed on the stock exchange.


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The Decade of 1960 Diversification of Groups Business

By mid 1960s Mr. Fazal Karim also returned to Pakistan and the four brothers

fondly known in the business community, as the The Gang of Four" soonbecame Pakistan's biggest textile exporters. They were also joined in thebusiness by their two cousins. In 1964, Crescent Jute Products Limited was setup and the Group took full advantage of unlimited resources of the countrys juteproduction in the eastern region.

During the late 1960s the group expanded by setting up CrescentBoards Limited and Shams Textile Mills Limited. Crescent Board was the first ofits kind designed by a German company to utilize biogases from its sugar millsfor the manufacturing of board. Rapid expansion during the 1950s and the 1960smade Crescent Group one of the top groups and among 22 families notarized

families of Pakistan, which dominated Pakistani economy in the sixties.The Group continued to expand its strength in the textile sector and incorporatedShams Textile Mills Limited, which was primarily engaged in manufacturing andtrading of high quality yarn. The late 60s (1967) saw the emergence ofShakarganj Mills Limited as the Group continued to gain its hold in the sugarsector of the country. The end of the decade, Crescent Group had emerged asone of the most prestigious and strongest business conglomerate of the country

1980s and 90s Shift of Groups Focus towards Financial and EngineeringSectors:

The sponsorship and management of the Group realized the potential ofPakistans growing financial sector and decided to make inroads into it in late80s. The Group established Pakistan Industrial Leasing Corporation Limited in1987 and successfully undertook leasing business in the country. This wasfollowed by the establishment of Crescent Investment Bank Limited, which wasamong the premier investment banking institution in the country.

The Bank dominated the Pakistani investment banking scenario foralmost a decade until it acquired Pakistans operation of a multinational financialinstitution, Mashreq Bank psc, to form Crescent Commercial Bank Limited in2003. The merger gave Crescent group a completely new image in the financial

sector as it became the owner of a full scale commercial bank in the country.TheGroup further diversified its focus towards other sectors of the economy andincorporated Crescent Steel and Allied Products Limited in 1983. It is one of thedownstream industries of Pakistan Steel Mills, manufacturing large diameterspiral arc welded steel pipelines. The company has become one of the most wellwritten success stories of the Crescent Group and stands as the leading privatesector steel engineering company in Pakistan.


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Further inroads into the financial sector were made by the group in early90s when it established 3 new Modaraba companies. First Crescent Modaraba,among them, become one of the largest modaraba companies in Pakistan inyears ahead. First Crescent Modaraba in the years to follow turned out to be theparent company of the existing Crescent Standard Investment Bank Limited,

which is now the largest investment bank in Pakistan. The Group also tappedinto the countrys housing finance sector and incorporated International HousingFinance Limited in 1990. Besides establishing the new companies in the financialsector, the Group also started a series of takeovers and acquisitions andacquired Crescent Leasing Corporation Limited as part of its expansion strategyin the sector. Crescent Leasing Corporation Limited now stands among the mostreputed and well renowned leasing companies in the leasing industry. The groupentered the brokerage services in 1995 and took over Shoaib Capital (Pvt.)Limited to rename it as Crescent Capital Management (Pvt.) Limited.

Current Decade Finalization of the Groups Strategy towards

Financial Sector

In early 2000s, the Group paced up its acquisitions and bought 3 leasingcompanies in 2002 namely Paramount Leasing Limited, First LeasingCorporation Limited and Pacific Leasing Company Limited.

Leasing Company Limited:

During the same period a Modaraba company was also acquired and latterrenamed after equity injection as Crescent Standard Modaraba. The Groupcarried on its acquisition spree by further acquiring a brokerage firm Crescent

Standard Brokerage in 2002.

The Group also undertook rapid maneuvers in the banking sector to reduce thenumber of companies and formulate a stronger financial institution rather thenoperating several different banking companies at the same time. Al TowfeekInvestment Bank was acquired by the Group and it was merged with FirstCrescent Modaraba to be re-named as First Standard Investment Bank Limitedin 2002, which was renamed to Crescent Standard Investment Bank Limited.

In another Group merger Crescent Investment Bank Limited acquired Pakistanioperations of Mashreq Bank and both these financial institutions got merged to

form Crescent Commercial Bank Limited in 2002.In yet another merger in 2003Pakistan Industrial Leasing Corporation Limited, Trust Investment Bank Limited,Fidelity Investment Bank Limited and Doha Banks Pakistani operations allmerged to form Trust Commercial Bank Limited. In a bid to further streamline thebanking operations of the Group Trust Commercial Bank Limited was mergedinto Crescent Commercial Bank Limited in October 2004.


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First part of the groups financial sector penetration strategy was to acquire andestablish companies with diversified operational bases and the second phasewhich was the consolidation phase saw some of the most pioneering andcomplex mergers in the history of Pakistan in respect of the number ofcompanies involved. Crescent Standard Investment Bank Limited, which now

stands as the largest investment bank in Pakistan, is also the result of multiplemergers and acquisitions involving 7 of the above mentioned companies thatwere bought in the nineties and early 2000s.The latest acquisition undertaken bythe Group is in the energy sector. Altern Energy Limited was taken over by theGroup in early 2005.

Crescent Group now runs its fastest growing financial sub-conglomerate by thename of Crescent Standard Group, which is lead by Mr. Altaf Saleem, Mr. AhsanSaleem and Mr. Anjum Saleem, who represent the third generation of theCrescent family.Following table depicts the chronology of developments(incorporations and acquisitions only) that were followed by the Group in entering

new business venues over its history.


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Company Date of Incorporation /Acquisition by Crescent Group

Crescent Textile Mills Limited 1950

Muhammad Amin MuhammadBashir Limited

1951

Premier Insurance 1952

Crescent Sugar Mills Limited 1959

Crescent Jute 1964

Shakarganj Mills Limited 1967

Shams Textile Mills Limited 1968

Crescent Board Mills Limited 1977

Crescent Steel & Allied ProductsLimited

1983

Suraj Cotton Mills Limited 1984

Pakistan Industrial Leasing

Corporation Limited

1987

International Housing FinanceLimited

1990

First Crescent Modaraba 1990


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Crescent Standard BusinessManagement

1990

Crescent Investment Bank Limited 1989

Crescent Software ProductsLimited

1992

Crescent Bahuman Limited 1993

Crescent Leasing CorporationLimited

Taken Over in 1993

Crescent Capital Management(Pvt.) Limited

Taken Over in 1995

Crescent Commercial BankLimited

2002

Crescent Standard Brokerage 2002

Al-Towfeek Investment Bank Taken Over in 2002

Crescent Standard Modaraba Taken Over in 2003

Fidelity Investment Bank Limited Taken over in 2003

Safeway Mutual Fund Taken Over in 2003

Asian Stocks Fund Taken Over in 2004

Altern Energy Limited Taken Over in 2005


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2. OBJECTIVES OF STUDYING THE ORGANIZATION

The main objectives for choosing the Crescent Bahuman Limited PindiBhattian for practical study are as under:

1) Successful completion of studies regarding MBA program.To gain insight into the Marketing System of Crescent Bahuman Limited (CBL).

2) CBL is one of the biggest jeans manufacturing unit of Pakistan and I wish toobserve through this organization the dealing the Management of CBL with allthe concerns, i.e. employees, for department and customers.

3) CBL is considered to be the symbol of success and well known for itsconsistency, best quality products and its use of the most modern methodsand technology.

4) CBL is one of the largest manufacturers and leading exporter of textile goodsin Pakistan, exporting quality products throughout the world.

5) CBL is passing through rapid demographical changes which are the cause ofstructure and administrative change.

6) To enhance the ability to deal with different type of people.

7) Industries have always been a favorite field of interest for me.

8) Through this practical experience I wished to know about the latestdevelopments in Marketing throughout the garment sector in Pakistanespecially in CBL.

1.5.1 Leadership Walk the talk Empowerment Problem resolution

1.5.2 Accountability Ownership of responsibility Acceptance of mistake Use of authority

1.5.3 Team Work Sharing and participation Team Spirit Facilitate Alignment

1.5.4 Growth Result orientation Innovativeness Willingness to learn

1.5.5 Ethics Fairness and sincerity Truthfulness Professional Integrity


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1.6 Main designation at CBLExecutive grades E1 to E5 (EVP, SVP, AVP)Managerial grades M1 to M6 (SM, SDM, DM, SAM, AM)Staff grades S1 to S3Work man S4 to S6

S1 officers, superiorsS2 Junior Officer S3 Senior OperatorsS4 OperatorsS5 Assistant Operators

Departments of CBL1 Human Resources and strategy2 Finance3 Information technology4 Engineering

5 Marketing6 Supply chain7 Industrial Engineering8 Product Development9 Spinning10 Weaving11 Cutting12 Sewing13 GWP14 Quality Assurance15 Stonage

Departments and Their Abbreviation

GQ Garment QualityHR Human ResourceBFL Bahuman Forestry LimitedIT Information TechnologyPG Power GenerationSY SecurityIE Industrial EngineeringSW SewingSV ServicesSCH SchoolWP Garment wet ProcessingHO Head OfficeIR Industrial RelationCV CivilCT CuttingWV WeavingQA Quality Assurance


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Human Resource and Strategy2.8.1 Three main areas

. HR department plays a linkage role between the processes, strategies,and people. The main function of this department is to facilitate thestakeholders

B. Recruitment and selection process fulfill the future requirements oftalented sourcing and their appointments or entry in the organization.Once a new employee or associate selected his naturalization processbegins

C. Training and development function is directed towards individuals, whohave potential to grow and commit for long term association with CBL.

A. Human ResourceB. Industrial RelationC. Co- workers services

2.8.2 ObjectivesTo ensure alignment of people, processes, strategies and facilitate the

organization in concern of to achieve the CBL goals. Make people in term of toachieve the personal and professional objectives fulfilled

2.8.3 Services Establishment and implement of all HR related policies and procedures Determine the training needs of managers and ensure their development

through external internal trainings programs Bring positive change in attitude and personality Ensure the employees and organization development Implement the orientation training at all level Ensure the fair and equitable pay structure Ensure the international quality standards

2.8.4 Separation of confirm employeesAfter probation period. In case of any violation of company rules IR issue adismissal letter to employees along with N.S.O

2.8.5 Perks SystemPerks are allocated according to grades of employees like as:S3 800S2 1,000S1 2,000M5 3,000M4 4,000M3 6,000M2 10,000M1 12,000


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2.8.6 Resign processResign process also two types as under:Probation employeesFor probation employees no notice period applicableFor confirm employees according to policy of CBL, confirm employees enforce to

complete 1 month period and deposit 1 month salary and clearance ofemployees make within 10 days

2.8.7 ConfirmationWhen employees complete the probation period according to their gradescompany issue a confirmation letter

2.8.8 Annual AppraisalLike other organizations, significant methods are used to evaluate the annualperformance of employees like as:

2.8.9 Appraisal systemAt executive level, both appraiser and appraise mutuallyDiscuss the performance with proper reasons and at management level along

with others employees.2.8.10 Criteria of Performance85% and above Excellent74% to 84% Very good60% to 75% Good45% to 59% fail45% and below unsatisfactory

2.8.11 Filling Criteria (S2 and below)Key functions of Human Resource are to prepare the file of the selectedcandidates so this purpose following requirements should be fulfilling as under:Job applications forms and others academic certificates

2.8.14 Interview evaluation forms Panel form Joining slip .Source recommendations form


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FINANCE DEPARTMENTIN

CRESCENT BAHUMAN LTDFollowing are the main sections of finance department in CBL.

Import

Accounts payable

Payroll

Tax Costing

Fixed assets

IMPORTThis division deal with only to foreign parties such as Levis. Ben Sherman Paxarinternational etc.

ACCOUNTS PAYABLEThis division deal only in local parties such as Sapphire textile, pay hotelexpenses mess expenses etc.

PAYROLLThe payroll division handles payments to all full-time and part-time employees ona bi-weekly basis. In addition all checks for the self-insured medical plan, reportsfor workers compensation, and local taxes, and all other payroll related items arehandled by this division.

TAXESThe department of taxation received revenues. The department processedindividual and business returns during the year, not including the quarterlywithholdings and estimated payments. Withholding accounts were mailedremittance coupons for tax year. The department processes the quarterlyestimated tax payments and handles pieces of mail each year.


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STRUCTURAL DIAGRAM OF EMPLOYEESIN

FINANCE DEPARTMENT OF CBLCHIEF EXECUTIVE OFFICER

VICE PRESIDENT FINANCE

ASST-VICE PESIDENT FINANCE

SENIOR DEPUTY MANAGER FINANCE

DEPUTY MANAGER FINANCE

SENIOUR ASSISTANT MANAGER

ASSISTANT MANAGER

JUNIOUR ASSISTANT MANAGER

SENIOUR OFFICER FINANCE


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DETAIL OF EMPLOYEES IN FINANCE (IMPORT)Mr. Mukhtar (DM)Mr. Waseem Ahmed (JAM)Mr. Sami Ullah (SAM)Mr. Asad Ullah Khan (JAM)Mr. Salman Ahmed (JAM)Mr. Javaid Ahmed (S1)Mr. Rizwan Ali (S1)

ACCOUNTS PAYABLEMr. Kashif Munir (S1)Mr. Imtiaz Ahmed (S1)

Mr. Izhar Ghouri (S1) TAX

Mr. M. Shafeeq (DM)Mr. Tahir Ikram (S2)Mr. Shahbaz Khan (S2)Mr. Sohaib (S3)Mr. Atif (S4)

PAYROLLMr. Muhammad Farooq (JAM)Mr. Arshad (S1)

GL (ORACLE)Mr. Usman (S2)Mr. Tahir Ghazi (SAM)

FIXED ASSETSMr. Tahir Ghazi (SAM)Mr. Fayaz (AM)

RECORD KEEPERAamir Nadeem (S4)


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Six- Sigma

Six-sigma is an initiative based on statistics and designed to streamlineprocesses and increase profitabilityProject based training on Six-Sigma, spread over four months, and wasconducted by a renowned foreign trainer at CBL in 2003. CBL is the firstcompany in textile sector to have 15 employees trained as black belts in variousfunction areas

4.1 ISO (9000 & 14000)4.2 WRAP

4.3 IFC4.4 WORLD BANK

Products of CBL

Jeans PantJeans Jacket


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Two types of work which I have done duringinternship.

Primary work

Secondary work

PRIMARY WORKI have divided my work in following parts

Reconciliation Statement

Preparation of cost sheet

Transaction in Oracle

RECONCILIATION STATEMENTThe purpose of this exercise is to reconcile own companys statement with therecords of other company. A valuable thing about a checking account is that itprovides a double record for the depositor--one maintained by the company(depositor) and the other by the bank. The banks record, called a bankstatement, is sent periodically (usually monthly) to the company. Whenever abank statement is received, for control purposes an appropriate person within thecompany should reconcile the bank statement with the companys own records.This reconciliation accounts for differences between the two records. Thesedifferences are usually one of two types: one is comprised of lag by the bank orthe company. Of course, once identified, errors can be corrected. Furthermore,the company is assured of the amount of cash available to it at the bank. For thebest control, many companies reconcile both balances and transactions. Thisassures that the bank account is not being used for unauthorized purposesforexample, an unauthorized deposit and withdrawal for the same amount. Pertinentdata necessary for the completion of the bank reconciliation are as follows:

As of June 30,19X1, company had outstanding checks amounting to Rs.28000 and deposits in transit equal to Rs. 35000. These items cleared thecompany in July.

The July companys statement did not include the following data:

Check No. Amount Deposit date Amount751 12000 July 29 14000800 13000 July 31 30000802 4000

None of the above checks were outstanding on the June bank statement. NSF (no sufficient funds) check of customer for Rs. 820 deposited on

June 25 was charged back by the bank on July 10. The companycontacted the customer and redeposit the check on July 15.

The way we understand bank reconciliation should look or at least thefundamental components:

Statement closing balance for period

GL Bank Account balance for period


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Total unpresented Cheques for period

Total AR unreconciled items for period

Total cash management unreconciled statement lines for period

STANDARD WAYThe above would help us in the bank reconciliation we currently preparemanually. The formula is:Bank statement closing balance for period APlus unreconciled AR BLess unpresented Cheques CPlus unreconciled CE lines DPlus/minus manual corrections EEquals Bank balance FGen. Ledger account bal for period GResult F=GIn the above formula, we would work out the manual corrections ourselves, but

we expect to get the other totals from the cash management report.Now the current report shows the following:BANK POSITION:Closing bank balance 4880909.15 (entered fromstatement)Lines marked as errors 0.00

Adjusted Closing Bank balance 4880909.15

GENERAL LEDGER POSITION:Balance per GL 4983396.11Statement items reconciled to future period 3882910.84

Adjusted GL balance 8866306.95CASH MANAGEMENT POSITION:Total reconciled in statement lines (40476645.75)Total Unreconciled in statement lines 62.87

Adjusted closing bank balance(40476582.88)

DIFFERENCE: 45357492.03

The above report shows no comparison of the main figures. Furthermore themanual does not explain how to make comparison of these figures to determinethe difference between the GL and the bank.


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ACCORDING TO CBL First Step is to tick the invoices of own ledger with the partys ledger.

Second step is to tick the payment of own ledger with the partys ledger.

Next is to find out unmarked payments and invoices.

Next is to prepare reconciliation statement.Following is the sample of Reconciliation statement:

Balance as per Supplier Ledger 00000Less:Bills not received

Bill# Date Amount122 25-08-08 00

Debit NoteBill# Date Amount124 26-08-08 00

Income TaxBill# Date Amount125 27-08-08 00

ADDBills not taken by SupplierBill# Date Amount

120 29-08-08 00Result

Balance as per CBLS ledger 00000

COST SHEETA competitive product must address factors such as cost, performance,aesthetics, schedule or time-to-market, and quality. The importance of thesefactors will vary from product to product and market to market. And, overtime,customers or users of a product will demand more and more, e.g., more

performance at less cost. Cost will become a more important factor in theacquisition of a product in two situations. First, as the technology or aesthetics ofa product matures or stabilizes and the competitive playing field levels,competition are increasingly based cost or price. Second, a customers internaleconomics or financial resource limitations may shift the acquisition decisiontoward affordability as a more dominant factor. In either case, a successfulproduct supplier must focus more attention on managing product cost.When a company faces a profitability problem and undertakes a cost reduction


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program, it will typically reduce research and development expenditures andfocus on post-development activities such as production, sales, and general andadministrative expenditures.

DEFINITION OF TERMS

The following definition of terms will provide a common basis for discussion:Recurring production cost = Production labor + Direct materials + Process costs+ overhead + outside processingNon-recurring costs = Development costs + ToolingProduct costs = Recurring production costs + allocated non-recurring costsProduct price or acquisition costs = Product costs + selling, general &administrative + warranty costs + profitLife cycle costs = Acquisition costs other related capital costs + training costs +operating costs + support costs + disposal costs.

PREPARATION OF COST SHEET

It shows that what type of material CBL purchased including its total cost.PURPOSE:

Its purpose is to record the expenses.

To find out the total cost of import.

To find out the per unit rate.

IMPORTANT THINGS: Three things are necessary

Estimated cost sheet No.

Control No.

Purchase order No.

DOCUMENTS:Following documents are necessary for the preparation of cost sheet.

Suppliers Invoice

Agents Bill

Freight Bill

Form of taxAfter the completion of above requirements we can prepare cost sheet by usingcomputer.

FOC:FOC stands for free of cost. Sometimes customer such as Levis send their own

choice of trims to CBL now it is recorded as free of cost but CBL has to beardsome expenses on it such as transportation expenses. But when the customerpaid the amount that amount is deducted from his payments.

ORACLE FINANCIAL SOFTWAREOracle Financial is a complete application for financial reporting, analysis,budgeting, and planning. Integrating a central source of management data withpowerful analytical tools, Financial allows businesses to make, manage, and


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measure decisions across the enterprise. The system provides businesses witheverything they need to control costs, analyze performance, evaluateopportunities, and formulate future direction. Oracle Financial is part of theOracle E-Business Suite, an integrated set of application, which is designed totransform your business to an e-business.

EXTENSIVE FINANCIAL MODELINGFinancial supports a wide variety of financial management tasks with its modelingtools. Results of what-if analyses display immediately. An extensive library ofbuilt-in functions helps users create forecasts and calculate performance ratios.Users can incorporate general ledger and non-general ledger data into analysesto derive, and then share, new financial data.

SPREAD SHEET LINKSFinancial leverage users knowledge of spreadsheet applications. The systemlinks directly with industry-standard spreadsheets so that users can submit, viewand report financial data from those spreadsheets. This link also provides

spreadsheets with access to the powerful data query tools of the selector.DATA LOADING

With its extensive loading capabilities, Financial can easily accept and validatedata from general ledges, spreadsheets, relational databases, and otheroperational systems.

DECISION MAKINGOracle Financial integrates with oracle general ledger. This integration eliminatesthe need for duplicate data entry and structural maintenance, and therebyprovides a more cost-effective financial management.

TRNASACTIONS IN ORACLE FINANCIALTo Record New transaction:

First open oracle then click on invoice batches

Click find enter name of month e.g.%May04%

Then enter and click invoices

Click view, record and last

To Show Voucher NO: Click folder then show field

Enter in find %vou% then click on OK.

Check the Transaction In the invoice batches window click invoices

Enter the amount in invoice column and then click on find

See Voucher of Separate Month: Click view then request then submit a new requestand then click on

copy

Click parameters enter code of voucher + tab and then click on find

Click submit , no and refresh data

See Voucher of Same Month: Click view then request then submit a new request


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Click copy then click on parameters and enter %May04%

Click find then click on J V import 04 and then OK

Click refresh data

Transaction of clearing charges: Suppliers name is that name which is entered on the top of expenses

list

Enter invoice no, date and then amount of invoice

Click on distribution

Enter amount in the account column and press Ctrl + L

Enter code of account

Click[] enter IRN use tab enter #, date and PO#

If the system give a message of error then in IRN # enter additional A andclick on OK and save

SECONDARY WORK

VOUCHERS FOUNDING

VERIFICATION OF VOUCHERS, COST SHEET AND TRANSACTION

CORRECTION OF VOUCHERS, COST SHEET AND TRANSACTION

PRINTIN OF VOUCHERS,COST SHEET AND RECONCILIATIONSTATEMENT

BOX FILLING OF VOUCHERS


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BUSINESS VOLUMEThe balance sheet and profit and loss account together will show the businessvolume of CBL for the year ending on 30 th June, 2007.

Crescent Bahuman LimitedBalance Sheet

As At June 30, 2007

2006 2007Rupees Rupees

Share Capital and Reserve

Authorized capital600,000 ordinaryShares of Rs. 100/- each 60,000,000 60,000,000

Issued, subscribed andPaid up capital 60,000,000 60,000,000

inappropriate profit 105,466,103 67,184,820165,466,103

127,184,820 Non-current Liabilities

Long term loans 329,868,755 362,098,587

Liabilities against assets subjectTo finance lease 115,946,982 109,771,594

Deferred liability

Staff retirement gratuity 10,823,609 9,962,141456,639,346 481,832,322

Current Liabilities

Short term bank borrowings 950,182,695 787,135,412Current portion of long

Term liabilities 89,838,462 52,847,898Creditors, accrued and other

Liabilities 244,989,749 233,644,309Provision for taxation

Income tax 22,846,641 -1,307,857,547 1,073,627,619

Contingencies and commitments 1,929,962,9961,682,644,761


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Non-Current Assets

Fixed assets 597,278,955 578,182,168Long term deposits 5,554,985 2,550,543

602,833,940 580,732,711

Current Assets

Stores, spares and loose tools 146,866,290 124,260,241Stock in trade 709,655,037 544,866,136Trade debts 165,148,491 108,295,886Short term investments 1,440,750 61,440,750

Advances, deposits and prepayments 198,593,943 129,885,968Other receivables 81,033,815 120,640,588

Cash and bank balances 24,390,730 12,522,4811,327,129,056 1,101,912,0501,929,962,996 1,682,644,761


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Crescent Bahuman LimitedProfit And Loss Account

For The Year Ended June 30, 2007

2007 2006Rs. Rs.

Sales 1,635,312,974 1,576,661,597Cost of sales 1,335,183,123 1,373,637,814Gross profit 300,129,851 203,023,783

Other operating income 13,744,095 642,583313,873,946 203,666,366

Distribution cost 109,577,996 101,943,921Administrative expenses 25,295,365 24,414,544Other operating expenses 3,594,949 1,720,656Finance cost 114,277,712 46,032,774

252,746,022 174,111,895Profit for the year before taxation 61,127,924 29,554,471

Provision for taxation 22,846,641 16,273,201

Profit for the year 38,281,283 13,281,270==========================================


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3.4 PROFILE OF EMPLOYEES

Numbers of Staffs as on 31,Dec-

2007 Percentage

Executives 25 0.40%

Managers 275 4.40%

Supervisors 300 4.81%

Assistant Supervisor 589 9.45%

Sr. Staff 386 6.20%

Operators 87 14.10%

Assistant Operators 3778 60.64%

Total 6230 100.00%


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8.SHORT-FALLS/WEAKNESSES OF THE MARKETINGDEPARTMENT

Although CBL is going nicely and profitably but here are some SWOTanalyses to understand the current position of the organization along withmarketing department. In this discussion, we will discuss here some strengths,weaknesses, opportunities and threats of the organization. We discuss them oneby one.

8.1 STRENGTHS

The main positive points of the CBL are as under:

8.1.1 Biggest Unit.

CBL is one of the biggest unit in Asia and Pakistan. It exports 8 Million jeansannually to foreign countries. It can produce 30000 jeans per day. So that's whyhe CBL is at top in Production wise.

8.1.2 Working Environment.

CBL provides employees a environment friendly working environment. Wastematerial is disposed very carefully after cleaning in the cleaning plant. Thats whyemployees feels very comfortable during the work does not feel any job stress.

8.1.3 Professional People

CBL always hires well educated and professional employees. Thats why all thepeople in the marketing department are fully trained and very professional.

8.1.4 CommunicationCommunication is key for the success of any organization. Thats why in CBLcommunication with customers, with in department, and between the departmentis very sound.

8.1.5 Vertically Integrated

CBL is basically vertically integrated company in which all the material used inpreparing jeans including fabric, thread, washes, and packages material areproviding himself.

8.1.6 Quality Conscious

Quality is the main factor for the success of any organization. Thats why CBL isISO 9001 certified company for his quality products.

8.1.7 Compliance

In compliance, CBL is number factory in Pakistan.


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8.2 WEAKNESSES

After the description some positive points of CBL, now we discuss someweaknesses of the organization. These are as under:

8.2.1 No Direct Marketing

CBL is not doing direct marketing. Its people are just working to retain thecustomers which is providing by AMOL.

8.2.2 Marketing Setup

The marketing setup in the top management is good, but in the bottom setupis very poor because no concentration is given to the capture the local market.

8.2.3 Basic Styles

CBL is just working on basic styles because the location of the organization is inan illiterate area where skilled people are not available. So it is very difficult for

CBL to hire professional people at huge cost.

8.2.4No Job Rotation

People are just doing their own specialized work within the department and thereis no job rotation at any level.

8.2.5 High Overheads

Because CBL is providing a lot of facilities to employees such as freetransportation, free gas, fee electricity and free residency. So it bears a lot ofextra expenses in shape of high overheads.

8.2.6 High Liabilities

CBL is also borrowing a lot of money from local banks for new developmentsand provide lot of facilities which are necessary to fulfill the customer demands.Thats why it has high liabilities.

8.2.7 No Advertising

Because local exports are very low, so they use no print media or advertisementon radio or T.V.


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8.3 OPPORTUNITIES

Some of the areas in which CBL can improve a lot are as under:

8.3.1 Fabric Marketing

Organization has the capacity to produce a lot of fabric. If proper marketing

program is launch to attract new foreign customer then, it can earn a lot ofmoney.

8.3.2 Fashion

CBL is just working on basic styles. It has the opportunity to concentrate onsome fashionable styles in order to capture the fashion market in local as well asin foreign countries.

8.3.3 Other Areas Of Textiles

CBL can also move to other areas of textile like twill.

8.3.4 Launch Own Local Brand

CBL can also presents his products in local market by launching well preparedmarketing plan in order to capture the local market share.

8.4 THREATS

Now we discuss some potential threats which may effect the organization. Wedescribe them one by one:

8.4.1 Political Instability

Now a day in Pakistan, political instability is the main concern for foreignerinvestors because it affects the economy of Pakistan very badly. This situationcan create problems for CBL to retain its customers.

8.4.2 Extremism and Terrorism

Extremism and terrorism can effects the products of CBL because it creates ahateful passion for Muslim against Islam.

8.4.3 Regional Competitors

Regional countries like, India, Bangladesh and China are progressing in garmentsector very fatly and furiously. These foreigner countries and some local factoriescan be potential threat for CBL.

8.4.4 Law & Order Situation

Now a days, in Pakistan the suicide attacks create a very furious situation whichis very harmful for economy of Pakistan. It can create problems for CBL to attractnew foreigner customers or retain the new customers.


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8 Contract AreasThere are two areas related to contract, which are as under:8.1 CBL School SystemThe main function of this school system is to facilitate the employees at all levelsand quality education of their children the main purpose of this school system is

to retain the potential employees of CBL.8.2 Main Highlights of CBL School System Admission open in this setup annually basis. Classes from playgroup to metric level. Fully Oxford syllabus system. Attractive and air conditioned class room. Female teachers are preferred for playgroup. Minimum qualification of teachers is master in any discipline. Recruitment process for teachers under the control of HR department. Formal and informal activities to create the leadership quality in children. Arrange the competition function related to speeches, poetry and others

annual celebration of Pakistan. Annual results function are arranged and appreciate the capable students

of all classes. Teachers are bounded to strictly look after the all types of activates of

children. The progress reports of students are sent to their parents.

8.3 Construction AreasFor the further development of production, services, administration andresidential areas for bachelors and families. Construction tenders are assigned tothose contractors, have complete construction machinery, proper labor force andfollow the applied rule regulation related to construction field. A special

department of CBL check the requirement of construction, terms and conditionsmentioned in the assigned tenders.


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9. CONCLUSIONS AND RECOMMENDATIONS FORIMPROVEMENT

After studying the organization I have reached on a point where I cansuggest what I inferred from this period which I spent their.

9.1 CONCLUSIONSThe practical study which I carried in this organization was very informative forme because it provides me the chance to see the actual working environment inthe light of management theory. This also gives me the occasion how we canimplement the theoretical knowledge in the working environment.I have seen thedifferent departments most of them are working well. However I have also takenthe critic notes of the working ways and conditions of different departments.There I found some weaknesses and flaws along with the good working styles ofthe workers and the supervisors.9.2 RECOMMENDATIONS

Analyzing all the chapters conclusions and the interviews and surveys thatI have conducted, it is finally concluded that CBL management is working in amore focused and formalized manner.However, to achieve their objectivessuccessfully on the International standards,following suggestions are offered:

The CBL must concentrate in the local marketing to increase the profit.

The management should take keen interest in exporting the fabric todifferent countries.

It is highly recommended to the CBL management that they shouldmore emphasize on hiring highly qualified and fresh degree holdersbecause it brings innovation. Moreover highly qualified staff can run

the management in a more formalized and focused manner. It is recommended to CBL that they should go for news paper

advertisement also, both for recruitment purpose and for the purposeof gaining employees of capable abilities having not access to internet.

It is highly recommended to the management that the orientation mustbe conducted in a formalized manner. All the activities that have to becompleted in the orientation process must be documented on achecklist. After the completion of the orientation process the checklistmust be remarked and signed by the newly hired employees, as wellas by the supervisor/ head of the departments who are actuallyconducting the orientation. Finally the checklist must be reviewed by

the personnel manger, to make sure that the orientation process hasbeen completed properly.

It is recommended to the CBL management, that the departmentmangers must also be given opportunity to go abroad for updatedtraining courses. The experience gained by foreign training courses willmake the department managers better able to groom their departmentemployees according to the new techniques being practicedinternationally.


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The CBL management must also arrange local training sessions forspecial purposes to be refreshed after every 3-4 months, like stressmanagement, time management, crises management etc.

The audio/ visual tools must be used while training lectures. Casestudies must be conducted and training literature must be provided to

the employees. Employees attendance in the training classes must bestrictly maintained.

The annual increment in salaries of the employees in CBL is providedaccording to bargaining at the time of interview, it should also beawarded according to the performance as well. Moreover it isrecommended that the CBL management should increase the annualincrements in salaries in order to reduce the high turn over rate inemployees.

In case of outstanding profits earned any year, the CBL managementshould give credit to the employees by giving them bonuses. Thispractice will contribute a lot to employees motivation and involvement

with the Organization Moreover Eid bonuses may be given toemployees.


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3. OVERVIEW OF THE ORGANIZATION

The history, business volume and product line of the organization arediscussed as under:

3.1 BRIEF HISTORYPlanning Initiated: June 1993 (site selection)

Land Purchasing: August 18, 1993Civil Work Started: February 4, 1994Contract to be given: (Akber & Associates)

Sub Contractors: (MCC, Guarantee, SelectoParagon)Total Area of Land: 174 AcresErection Started A/C (Luwa): August 8, 1994Erection Started (Spinning): September 8, 1994Erection Completed: December 1994 (Textile)Production Started (trail basis): Late January 1995 (Textile)Production started (commercial basis): June 17, 1995Cost at Close (Approx.): 80 Million US $TEXTILE DIVISION MACHINERY & EQUIPMENT SPINNINGWaste Recycling Plant 1Line Trutzschler (Germany)

Blow Room 2Line Trutzschler (Germany)(One for Ring & Other for O/E)

i. Well Equipped Machinery

6.3 PRICING STRATEGY

The value, usually in monetary terms that sellers ask in exchange for theproduct s they are offering.

Second but most important element of the marketing mix is price, theamount a marketing organization charges for its products, whether the productsare goods, services or ideas. As stated above Crescent Bahuman Limited havedifferent product lines, i.e. ALF, LEVIS BESHERMAN, EXPRESS, LIMITED,CARRERA, MUSTANG, and other miscellaneous products. The management ofCBL has to adopt different methodology for affixing the price of each productwhich is briefly discussed here.


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First of all when customer sends the request of a sample, the IEdepartment collects the different information about the availability of material andthen adds all the expenses of different things which the customer require. Thenthe IE department send the cost summary to marketing department where theyadd their own markup on cost and send it to the customer for further negotiation.

For example their prices for levis and non levis are as under:

Basic (If 5 pocket then prices are as under)

Levis Non levis

4-7~14 US $ 14~20 US$

6.4 DISTRIBUTION STRATEGY

The process of moving products from the producer to the consumer,which may involve several steps and the participation of multiple

companies is called distribution.

The above definition is for all type of products whether it is goods, servicesor ideas. The place of our factory is convenient and we have transport facility.

As big manufacturer Crescent Bahuman Ltd has adopted customer orientdistribution strategy for distribution of goods. There are defined lead times for allcustomers but some time Crescent Bahuman Ltd favored customers and shipgoods by using air mode to make the delivery on time.

Some times customer requires sea shipment then at main head office CBL

has its own sales force to handle export problems and they maintain positiverelationship with customer to provide right product at the right time.

6.5 PROMOTIONAL STRATEGY

A variety of techniques, including advertising, sales promotion, publicrelations and personal selling, that is used to communicate with customers andpotential customers.

As for as the promotional strategy of Crescent Bahuman Limited is concerned, aseparate organization AMOL ( Apparel Marketing Operations Limited ) in Ireland

has been established in 1994 for the promotion of CBL products. They convincethe different customers that they can provide them their different product at lowcost. If they are ready then send a sample request to marketing department atthe central unit. The whole process to attract a new customer is discuss here.

3.5 PRODUCT LINES


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CBL is producing more than 300 styles of denim products and more than200 developed washes with over a 100 customer approved fabric resulting in adynamic mix of finished & jeans wears. The finished produced includes skirts,shorts, jackets and trouser are one or a combination of the following finishes:-

1. Whiskers2. Brushing3. Scrapping4. Spray (Robot spray)5. Sand Blasting6. Tinting

CBL specializes in working closely with its customers to develop a widerange of unique products. For Product Development, CBL is equipped with ahighly dedicated team and state-of-the-art equipment to churn out new productsat the speed of market demand.

Crescent Bahuman has had the honor of working with the leading brandsfrom four corners of the word. The varied regional mix of customers providesCBL with adequate global market information which in turn adds value to all of itscustomers. At the same time strict measures are in place to ensure that theproduct information for one customer is not shared with other customers.

INTRODUCTION

Finance is an art of managing money. And for this purpose, CBL has formulated a

finance department to look after the existing funds and to generate new methods for

generating funds. The Finance department in CBL comprises of well educated,

professional and intelligent personnel who by using their skills trying to benefit

company. Everyday finance department is busy in such activities that what new

methods to be explored so that cost is reduced and profits and revenues be

increased. As CBL deals in number of activities, such as purchases both local and

import, sales both at national and international level; then funds are obtained from

Banks and much more. So, Finance department performs the activities of recording,

summarizing and than at the end making decisions in order to provide cost beneficial

solutions.

The scope of work covers payroll processing, Imports recording and updating

accounts payable, recording collections and updating accounts receivable ; then the

major portion is of costing and budgeting of every item that is produced in CBL ; then

the maintenance, recording and valuation of fixed assets, negotiations with banks to

obtain funds and fair calculation of interest to be paid annually or quarterly, and in

performing all this complying with all the laws, accounting principles and regulations.


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Also, all inventories are in control of finance department. All records regarding

material in and out of company premises are accounted by finance personnel.

WORKING ENVIRONMENT

The working environment of finance department is a good and better place to workbut it more needs to be renovated. The personnel are sophisticated and talented

ones. The environment is very encouraging and learning one.

RECOMENDATIONS

Although the department is performing up to the mark, but it needs some further

improvements in order to rise as an excellent performer.

The layout of sitting needs to be changed. It should be in organized manner. The

existing structure gives a clumsy look at a glance.

The files and other data records needed to be kept into secured lock racks. Therecords to be only in access of finance personnel. But now it is in access of a

CBL reprt of internship

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