Ahmed Fine Textile Mills Ltd.

PAKISTAN’S TEXTILE INDUSTRY

Everyone in the world knows Pakistan as an agricultural country. Among all others, cotton is the major crop. This cotton, after processing takes various forms including yarn, fabric and other textile related products. The industry that is engaged in this area is very diversified in nature. It may not be wrong to say that textile quota regime has been a blessing in disguise for the country. Keeping in view the existing status of textile industry, it is feared that the country may not be able to retain its share in global trade of textiles and clothing in the free trade era, unless a very comprehensive revamping program is undertaken on top priority.. It may be true that the performance of local textile industry in last five decades has been a little disappointing; the industry still has the highest potential to play a vital role in overcoming the key issues facing the country. To a large extent, the Gap policies are responsible for the pathetic performance of textile industry, but the players are equally responsible for the imbalance growth, production of coarse counts and grey fabrics and low unit price realization. The result is,

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Ahmed Fine Textile Mills Ltd.

despite being the fourth largest cotton producing country, Pakistan's share in global textiles and clothing trade is less than 3%. In the spinning sector, at present there are about 9 million spindles and over 150,000 rotors installed. However, the average capacity utilization has always been around 75 per cent. The low capacity is mainly due to intermittent closure of mills because of inadequate cash flow rather than scarcity of cotton. The spinning capacity has increased mainly due to area and industry specific incentives. This proliferation has resulted in inefficiency and uneven playing field. Most of the units, established since early nineties are economically unviable and have survived only due to the incentives. The bulk of the percentage of yarn produced by these mills fall in the coarse counts category. Weaving at mills level has experienced constant decline. At present less than 3 per cent of total fabrics are produced at mills and remaining quantity is produced on power looms. The fabric produced on powerlooms is much inferior in quality compared to the cloth produced on shuttle less and air jet looms. This handicap does not allow the made-up manufacturers to produce superior quality garments. Therefore, despite enjoying the highest ceilings in certain categories, export proceeds have remained low. In case of Pakistan, the average unit price realization is below the world average. Like weaving, knitting is also mostly confined to smaller units operating in the unorganized units. This has been due to high duty applicable on shuttle less/air jet looms — although these looms are not manufactured in the country.
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Ahmed Fine Textile Mills Ltd.

PROBLEMS & PROSPECTS Textile industry has always been the pillar of Pakistan economy contributing substantially to Government Revenue. It also has a dual linkage and significance. As a major consumer of domestic cotton it provides a market for a leading cash crop and it thus has a critical influence on growth and productivity in the agriculture sector. In the value added manufacturing sector, the industry has a paramount position. Textile industry constitutes the foremost sector of manufacturing in Pakistan as it employees nearly 40% of the industrial forces and generates the 64% of the total foreign exchange earning. And contributes almost 20% to the total value added in a large scale manufacturing it represent 14.2% of the total export of the raw cotton Pakistan ranks fifth in the world in the production of the cotton yarn and occupies 1st position in the export of the cotton yarn. While the industry occupies 6th position in the production of the cotton cloth and 5th position in the export of cloth. The performance of the textile industry therefore has a vital impact on the over all growth and the development of the economy.

GROWTH OF THE TEXTILE INDUSTRY IN PAKISTAN:

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Ahmed Fine Textile Mills Ltd.

Cotton textile industry has made a spectacular progress over the past 51 years. At the time of independence o the country only two textile mils were in existence, one Sutlej Cotton Mills Ltd. in Okara, Punjab, the other Lyallpuor Cotton Mills at Lyallpuor, now Faisalabad. Both the mills were owned by the renowned industrialist of the undivided India. These units were self contained having all the departments, such aspiring weaving, dyeing, finishing as well as procession & printing, although the printing, of textiles was not as much developed as it is now. After the independence the process of development of the industry started picking up. In the year 1948, one more textile mill which was set up by Valika"s was inaugurated by the Quaid-eAzam. In 1949 the country had only 78000 installed spindles and 3000 looms. The organized development of cotton textiles was started in late fifties with the 1st five-year plan. At present there are 503 mills installed in the country with an installed capacity of 8.7 million spindles and 14000 looms. Out of 503 mills installed in the country, 418 units are engaged in spinning and 32 units in waste spinning. Both cotton yarn and cotton cloth may be considered as the export oriented industries, since the export shares. As far as the yarn is concerned, this represents an important structural weakness of the textile industry as we are unable to utilize domestically a larger share of our yarn for production of higher value added textile products and thus loose out to our competitors at the higher end of the world textile market. Pakistan's share of world cotton production has increased from 8.57% in 1986-87 to 9.2 % in 1996-1997.

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USSR. SPINNING PROCESS: Internship Report 5 . It ends. is purchased from the farmers. This year only 0. feeds etc.Ahmed Fine Textile Mills Ltd. Between these ends. When the cotton. Domestic consumption of raw cotton has been rising annually almost 75% of the production is locally consumed and raw cotton exports have fluctuated widely. COMPONENTS OF TEXTILE INDUSTRY: Textile Industry adopts different procedure. which has different phrases. Pakistan is the world's fifth leading cotton production nation after China. Finally it is tied up in to bales to bring them for next phase. The machines that separate seeds can be used to prepare oil.2 Kgs. In terms of yield per hectare. Pakistan has almost caught up with American but ranks 15th in the world with it are per hectare production of 6. USA and India. in which the seeds are separated from the cotton. there is a long panorama and different features of this panorama are described below: PROCESS OF GINNING THE COTTON It is the first steps.7 million tons of raw cotton are planned to be exported. This process starts and when cloth is made and ready to sale. The separated cotton is classified according to its quality and standers.

which performs key functions in specified process. carding section. these bales are opened and cotton is torn in to small pieces. simplex section. WEAVING PROCESS It is the process in which cloth is prepared from thread. A detail report of these sections will be provided in the later discussion.Ahmed Fine Textile Mills Ltd. This cotton is finally prepared as thread cones of different quality. Internship Report 6 . These looms are used to prepare the cloth. When the cotton bales reached the spinning mill. is called loom. and ring section and auto cone section. The machinery. The different departments play an important role in the progress of conversion such as blow room.

Ahmed Fine Textile Mills Ltd. COUNTRY RANKING ACCORDING TO THE PRODUCTION OF COTTON RANK 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 1 2 3 4 5 CHINA USA INDIA PAKISTAN CHINA USA INDIA PAKISTAN CHINA USA INDIA PAKISTAN CHINA USA INDIA PAKISTAN CHINA USA INDIA PAKISTAN USA CHINA INDIA PAKISTAN USA CHINA INDIA PAKISTAN UZIBEKISTAN UZIBEKISTAN UZIBEKISTAN UZIBEKISTAN UZIBEKISTAN UZIBEKISTAN UZIBEKISTAN Source: APTMA website COUNTRY RANKING ACCORDING TO THE PRODUCTION OF YARN RANK 1 2 3 4 5 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 RANK CHINA USA INDIA INDONESIA CHINA INDIA USA BRAZIL CHINA INDIA USA BRAZIL CHINA INDIA USA BRAZIL CHINA INDIA USA BRAZIL CHINA INDIA USA BRAZIL CHINA INDIA USA BRAZIL CHINA INDIA USA BRAZIL PAKISTAN PAKISTAN PAKISTAN PAKISTAN PAKISTAN PAKISTAN PAKISTAN PAKISTAN Internship Report 7 .

89 21.03 20.58 14.03 12.989 626.69 6.48 1. PRODUCTION OF YARN: PROVINCE WISE In ‘000’Kgs Period 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 PUNJAB SIND 419.70 0.42 -5.77 AHMED FINE TEXTILE MILLS LIMITED STATUS Internship Report 8 .Ahmed Fine Textile Mills Ltd.803 532.978 734927 823961 1070422 1020640 1100914 1095740 1100061 305816 342522 376794 398344 354643 347375 315258 324152 332547 336965 NWFP 26777 27877 26405 28478 27418 47363 44969 47931 65879 68021 Balouchistan 15038 21994 25051 26521 28517 33788 32781 32247 36689 37648 TOTAL 767434 925382 1055228 1188270 1234539 1498948 1413648 1505244 1530855 1542695 G% 12.61 3.

OFFICES Head Office of the Company is located at Ist Floor.Bahawalpur road. Sub offices:  Located at 35-km. Multan. Subscribed and Paid up Capital of the Company is 3800000 Ordinary Shares of Rs.. 1989 under the Companies Ordinance.each full paid in cash i.each i.e. The Company is limited by shares incorporated in Pakistan on December 13. 10/. District Multan (weaving unit)  Located in Rahim yar khan (Spinning unit) Internship Report 9 . near Adda Basira.e. Multan Cantt. Export office of the company is basically in Karachi but some little work is also done here in head office. Rs. 100000000/-. 10/.Ahmed Fine Textile Mills Ltd. 1984 with an Authorized Capital of 10000000 Ordinary Shares of Rs. Bohra Street. International Plaza.. The Issued. 38000000/- NATURE OF BUSINESS The Principal Business of the Company is Manufacture and Sale of Yarn and Cloth. Rs.

CVC yarns. one is spinning unit and two are Weaving units. Brand name # Of Shifts per day # Of Working days Installed Capacity after conversion Into 20/s count kgs Actual production of yarn after Conversion into 20/s count kgs 7626423 5632450 DOUBLE DELIGHT 03 365 Yarns. Chartered Accountants.Ahmed Fine Textile Mills Ltd. a world wide organization of accounting firms and business advisers.  Located in Qadirpurrawn (weaving unit) under construction. Installed capacity Count range 17280 Spindles Ne 8/1. 6-Commercial Plaza Opposite Civil Hospital Abdali Road.Ne 60/1. Spinning Unit: Spinning unit of Ahmed fine textile mills is in Rahim yar khan. Mélange Internship Report 10 . MANUFACTURING UNITS The Company has three manufacturing units. TC. a member of HLB International. Multan. AUDITORS M/S M. 2nd Floor. Yousuf Adil Saleem & Company.

L Pakistan GENERATORS GAS LABORATORY USTER TESTER RAW COTTON USTER Switzerland UT4-SX CHINA Y-101 WAUKESHA USA VHP-7110G RY-5 EJM-128 7-II 7-V TOYODA Japan TOYODA Japan TOYODA Japan MK-4 MK-5 DYH-500-C DT-110 RSB D 30 SK-4 A CM 10 FL-16 2 Lines 4 Scutchers 20 04 09 03 07 01 06 06 30 06 06 02 05 03 01 01 Weaving Unit: Internship Report 11 . MACHINE MAKE Germany MODEL # OF MACHINE BLOW ROOM TRUETZSCHLER CARD DRAWING CROSOL England TOYODA Japan TOYODA Japan RIETER Switzerland LAP FORMER COMBER SIMPLEX RING FRAMES 14400 SPINDLES TOYODA Japan 2880 SPINDLES TOYODA Japan AUTO CONERS MURATA Japan AIR CONDITIONING S.T.Ahmed Fine Textile Mills Ltd.

CVC. Satins/ Stripped Satins. Ottomans. Stretch Twill/ Poplin. Poplin. Ahmed fine textile mills has two weaving units. Percales Sheeting. Weaving unit of Ahmed fine textile mills is in District Multan. PC. etc. MACHINE Benninger-Zell 32 4000 mm Computerized Sizing 6 to 100 2000 2( with prewetting system) 14 TOYODA JAPAN JAT-610 72 190 cm 800 JAT-610 24 340 cm 500 JAT-710 12 340 cm 550 12 . Double Pick Fabrics.Ahmed Fine Textile Mills Ltd. Canvas. Installed capacity Fabric range 116 AIR JET LOOMS Twills. Bull Denim. WARPING Make Creel Size Head Stock Speed ( m/min ) Year of Manufacture Yarn Type SIZING Make Creel Size Head Stock Yarn Count Yarn of Manufacture Size Boxes Cylinders AIR JET LOOMS Make Looms Width Speed Internship Report MACHINE Benninger Swiss 1080 2400 mm 600 to 1200 2000 CT.

Ahmed Fine Textile Mills Ltd. of frames ROLLING MACHINE Machine Max. or 1 meter diameter (Jumbo rolls) CATERPILLAR USA. of units INSPECTION FRAMES No. No. roll size GENERATORS Diesel 07 07 leno or truck-in 10 light & medium weight ZR 355 MAX PRESSURE 10 BAR MD 1000 Atlas Copco Belgium Luwa Switzerland 03 80’’ 134’’ 04 2 400 kg. Internship Report 13 . of frames Salvage Fabric Construction AIR COMPRESSOR Air Dryer Make AIR CONDITIONING Make No. L-7052G Another weaving unit of Ahmed fine textile mills is located at Qadirpurrawan. This weaving unit is under construction & will be start at the end of this year. District Multan.

 Askari Commercial Bank Limited. T/C Yarn  Core Spun Yarn with Lycra  100% Polyester Yarn  100% Rayon Yarn Internship Report 14 .Ahmed Fine Textile Mills Ltd.  Standard Chartered Bank  Bank Al-Falah PRODUCTS Major Products of the Ahmed fine textile mills are: Spinning division  Cotton Carded/ Combed Yarn  Supima/ Giza Cotton Yarn  Plied Yarn Two for one Twisted  CVC. BANKERS  Muslim Commercial Bank Limited.  Bank Al-Habib  Mezan Banks  United Bank Ltd.  Habib Bank Limited. FINANCIAL YEAR Financial Year of Company starts on Ist October and lasts till 30th September.

Internship Report 15 .Ahmed Fine Textile Mills Ltd.  100% Acryllic Yarn  Polyester Rayon Blended Yarn  Polyester Acryllic Blended Tarn  Melange Yarn  Model/ Tencel Yarn  Slub Yarn Weaving division  Twills  Satin/ Stripped Satins  Percals  Sheeting  Poplin  Canvas  Stretch Twill/ Poplin  Ottomans (Double Pick) RAW MATERIALS Raw materials of productions are:  Ginned Cotton  Polyester  Yarn.

Almost there are 800 skilled and unskilled employees. PORTION OF EXPORTS The company exports much of the production:  90 % export  10 % local Internship Report 16 . WORK FORCE Company includes a lot of skilled and unskilled workers.Ahmed Fine Textile Mills Ltd.

produce superior quality yarn in order to face the competition in the international market. But at the same time taking care of their employees.Ahmed Fine Textile Mills Ltd. shareholders and society as well. MISSION STATEMENT MISSION STATEMENI According to customer demands. Internship Report 17 . suppliers.

Internship Report 18 . Quality of yarn depends upon cotton that has been purchased. It becomes most important when there is business of export. There is no question of compromise on quality. From director to cotton selectors all are involved in cotton purchase process.Ahmed Fine Textile Mills Ltd. PURCHASE DEPARTMENT The purchase department is divided into two categories. Moreover you will loss your credibility. PURCHASE DEPARTMENT STORE PURCHASE COTTON PURCHASE DEPARTMENT COTTON PURCHASE DEPARTMENT Cotton purchase department is most important department in textile industry. Because your minor mistake may result in huge losses. cotton purchase department and store purchase department.

Demand of purchase from mill Purchase Requisition Sample from different suppliers and quotations Sample Testing Decision-making Agreement with the Party Receiving Writing delivery order for factory InGate pass + D.e.Ahmed Fine Textile Mills Ltd. cotton. PURCHASE PROCESS: The following steps are involved in the purchase of raw material i.O + Purchase Invoice + Purchase Requisitions are supplied to accounts department Internship Report 19 .

STORE PURCHASE DEPARTMENT Stores Incharge heads the store purchase department. Samples are taken from different suppliers. In other words Director is final authority in making decision. VISIT OF COTTON SELECTORS The cotton selectors of AFT visit the cotton ginning factories. As there is centralized management system so the Director himself takes the decision of selection and purchase of cotton. SELECTING THE SAMPLE Samples are selected from huge amounts of cotton. The most suitable sample at lowest price is selected for Purchase of cotton.Ahmed Fine Textile Mills Ltd. Their visits are very important because purchase process starts from here. Cotton selectors may visit the factories on their own behalf and some times the cotton factories call them. These samples are then tested. The setup of purchase department is as under:  Director  Purchase Officer  Assistant Purchase Officer  Purchase Clerk Internship Report 20 .

 The purchase department receives the demand requisition from store in charge at store at mills this is in fact an intention or requirement of commodities at mill  The purchase demand requisition contains a full detail of quality and quantity of commodities required. store and Packing material spares. and General Store. Internship Report 21 . oil and lubricants. electric items. DOCUMENTS  Demand Requisition. It also contains price detail of goods purchased previously  The purchase department on the basis of indent does an inquiry for rate from at least two suppliers from approved suppliers list. The store purchase department is responsible for the purchase of items like Spare parts of machinery. Building Material.  After inquiry Purchase Manager discusses with Director for approval of rate and other necessary requirement.  Invoice of Purchase  Delivery Order  In Gate Pass PROCEDURE The following is the procedure for local purchase department. Stationery items.Ahmed Fine Textile Mills Ltd.

Ahmed Fine Textile Mills Ltd.  In case of rejection of items store in charge sends all copies of Delivery Orders with items back to the purchase department at Multan Office of AFT.  After the approval the Purchase Department purchases the items from suppliers and sent them to the mill with three copies of delivery orders  In case of no rejection of items store in charge send one copy of delivery order back to the purchase department along with one copy of In Gate Pass. Internship Report 22 . Store in charge also keeps a copy of delivery order and in Gate Pass for his own record.

The head of this department is Administration manager. Internship Report 23 . conflicts. Usually this department is required by the Govt. of Pakistan. The head of the department is responsible to resolve all the disputes. which arise from time to time with the labor and the immediate supervisor or with any regulations of the labor department. This department has to administer all the operations of the organization. misunderstanding and any other kind of matter.Ahmed Fine Textile Mills Ltd. There are some sections of this department.  Labor office  Security Guard office  Gate office  Time office The functions of each department are: LABOR OFFICE This office has been setup to deal with all the matters that are related with labor. ADMINISTRATION DEPARTMENT This is very important department of any organization.

There are some more responsibilities of the security guard officer.  Any outsider can’t come in the mill premises without the permission of security guard.  He should keep his knowledge up to date regarding the rules and regulations of the labor department. gate office clerk maintains two types of registers called:  Out ward going pass register  Inward going pass register Internship Report 24 . GATE OFFICE This office has been made to keep the record of each and every thing coming into and going out of the mill gate. For this purpose. Duties of labor officer are:  Inform about the legal requirement concerning the labor and company affairs. and other benefits to labor and to keep their morale and motivational level high.  Whenever some one want to enter in the mill that guard contact with authority to grant permission to enter into the mill. gratuity.  He can check each and every person before coming in or going out of mill gate for security purpose.  To satisfy himself regarding payment of bonus. Security guard officer is guardian of the every thing the Mill premises.Ahmed Fine Textile Mills Ltd. SECURITY GUARD OFFICE The main objective of this department is safe handling of the goods from/to the mill premises.

O.)  It keeps the record of Gratuity.P is prepared for out going thing.G. description. stores supplies etc. raw material. TIME OFFICE Some key activities of time office are:  This office keeps and maintains the time record of all the workers on time card and pay register for the final costing of the workers salaries. quantity of the material and any other remarks are written.  It keeps the record of the attendance which is used to calculate the salary of the employee paid to him/her on monthly basis. In the case of out going a document is used for this purpose is known as O. leaves. Internship Report 25 .G. Bonus. a document named as I.G.Ahmed Fine Textile Mills Ltd.P.  It keeps also the record of overtime.P is made in which information like date of supplies. When thing come in to the mill i. (# of days worked of all the workers and then calculates their overtime on the basis of the basic salary of each worker.e.

Ahmed Fine Textile Mills Ltd. The import department is responsible to import those items. equipment. which are not available in Pakistan. spare parts. etc. raw material. IMPORT DEPARTMENT AFT has also an import department. • An indent for import of item after the approval of Chief Executive is sent to import department. • The Senior Manager Import selects a subcontractor from approved suppliers list. Internship Report 26 . The structure of this department is as under: Chief Executive Director Senior Manager Import Assistant PROCEDURE Senior Manager is responsible for import of machinery.

payment term and conditions. It tells the importer about the price.  Performa invoice  Open bond manufacturing certificate (OBM)  Form I  Importer’s certificate  Bill of entry  Invoice  Air way bill PERFORMANCE INVOICE This invoice is made by the indenture the goods and their particulars.A copy of quotation is sent to concerned department for evaluation and checking of specification. Performa invoice consist of:  Exporter’s name & address  Importer’s name & address Internship Report 27 . a quotation from the subcontractor is received . the organization is demanding. In case of any damage. the import department is informed immediately.Ahmed Fine Textile Mills Ltd. • The received items are sending to the mills where these are opened. • In reply. The items are checked against quotations. Import department do the necessary arrangements for survey of goods from insurance agencies IMPORT DOCUMENTS There are different documents are used when we are going to purchase or import we required.

Ahmed Fine Textile Mills Ltd.

 Description of items  Quantity  Unit price  Amount  Terms & conditions  Country of origin  Deliver date  Mode of payment OPEN BOND MANUFACTURING CERTIFICATE (OBM) Govt. gives some incentives to the importers. It is only for the goods, which are not manufactured in the local market and must be imported. According to this incentive, when importer import the goods, then the Govt. does not receive import duty on these goods, FORM I Form I is an application for permission under the foreign exchange regulations act 1947 to purchase foreign exchange for payment of imports. In this form, the importer declares:  That mentioned payment is due and that he has not already obtained exchange for payment for imports nor he has made any other application for this purpose.  That amount of foreign exchange mentioned represents the correct prevailing market price for the goods on the date of contract in the exporting country.

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 That he is either connected with the exporter abroad directly nor indirectly nor does he has financial or other interest in the exporters.

IMPORTER’S CERTIFICATE The importer’s certificate, a valid import license registered with the State Bank of Pakistan covers the imports. A part of this form I is completed by the authorized dealer who certificate that the statements made by the applicants in the form are to the best of its knowledge correct and it has seen documentary evidence in support thereof. The dealer also certifies that the remittance has been made in accordance with method of payment as per existing exchange control regulations. BILL OF ENTRY This bill of entry is just like shipping bill. This is used for the clarification purpose. With the help of this document, import department got the goods cleared from the customs. It carries all the information about:  The importer  Letter of credit (LC)  Freight  Goods(their price, units, weight, package)
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Ahmed Fine Textile Mills Ltd.

 Shipment detail  Sales tax, income tax, custom & excise duty.

INVOICE When exporter negotiate the documents, he sends invoice to import department that specifies  Goods imported  Air freight & forwarding charges  Port of destination  Payments (in importing currency)  Type of packing
AIR WAY BILL

When goods are sent by ship, bill of lading is made. When the goods are sent by air, air way bill is made:  Air port of destination  Flight/ date  Amount of insurance  Handling information  # of pieces of goods  gross weight & net weight
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Ahmed Fine Textile Mills Ltd.

 rate/charge  nature & quantity of goods

MARKETING MIX
Marketing mix is the set of marketing tools that the firm uses to get its marketing objective in the target market.

PRODUCT
AFT is dealing in the textile area, the products, which the AFT is manufacturing, is the yarn and the grey fabric. AFT is producing the best quality yarn there and the different types. The construction of the grey fabric differ due to the differ in the quality of the yarn. There are counts. AFT produces the yarn of different counts. From 1 count to 20 count yarn& above, according to the specification of the customers. AFT exports about 95% of its produce to the foreign markets. It exports to the Europe, Asia& the other neighboring countries. Due to the spinning unit, AFT has an advantage in the weaving; that they use their own yarn in the manufacturing of the grey fabric also has the different quality constructions. The combed & the carded yarn. The combed is the yarn, which is more refined on compared to the carded. The products are produced according to the specification of the customers.
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also a margin is added.Ahmed Fine Textile Mills Ltd.  Maximization of profit  To achieve the target return and targeted sales. of AFT. The total expenditures are divided by the production. Their per unit is obtained.  These products are building the image the progress and developments of the organization.  Fixed cost  Variable cost The total cost is calculated. The AFT policy about pricing is that the profit should be reasonable. PRICE PRICING OBJECTIVES The obvious pricing objectives.  Maintain the market share. Internship Report 32 .  AFT also sells & purchases the products from the local market to fulfill its orders. While all the expenditure related to the products production are added. PRICING METHOD The pricing method AFT is adopting is profit based. And also they keep in mind the competitors because they are also providing the products at the competitive rates.

Ahmed Fine Textile Mills Ltd. Internship Report 33 . the cost related to the machinery.  Salaries & wages  Insurance expenses  Plant cost. VARIABLE COST  Part time workers. then the price would be high. all the expenditure related to the export such as the custom clearance charges. In the export. PRICE METHOD FOR THE EXPORT Pricing method for the export products is differing from the local pricing method.  Electricity change. FIXED COST  Fixed cost in value. Fixed Cost + Variable Cost +Desired Profit The profit margin depends upon the quality of the yarn and the grey fabric.  Transportation charges  Miscellaneous. The price will be different to attract the customer and in local market. As the high quality yarn is used in the construction of the grey cloth. port clearance charges.  Building cost.

As in the local market and the foreign. So the price would be lower in this. the buyers direct contact with the AFT.Ahmed Fine Textile Mills Ltd. They clear the containers from the port. AFT TO CUSTOMER AFT is also dealing directly with the customers. The comely delivery to the buyer is the greatest service to the customer. timely delivery is important for the success and development of the organization. AFT has a direct contact with the shopping his and the port and customer clearance agents. Therefore the distribution channel of the AFT is as follows. PRICE METHOD FOR LOCAL Pricing method for the local sale is different because all the cost involved in the export procedures is not included. So the export department fulfills their orders by the transformers. Also the charges related to the transportation and bank handling expenditure is considered while calculating the price of the export items. Internship Report 34 . PLACE / DISTRIBUTION AFT exports about 95% of its produce. The transporters are helping a lot in progressing the textile industry. Shipping line freight and other foreign agent commission is added. The transporter help in delivering the products.

located in the Lahore and Karachi.  In Lahore & Karachi. sell them directly to other buyers. They receive the order on behalf of the buyer. the agents are the backbone of textile industry. there have been a large number of agents. PROMOTION AFT promotes its products. but to a limited extent.Ahmed Fine Textile Mills Ltd. give to the seller.  The agents also purchase the products. payment problems and the quality problems.  Mostly the export business is through these agents. Internship Report 35 . in foreign countries as well as in this country. INDIRECT CHANNEL AFT to agent & to customer. The agents have been successful due to the credibility and honesty of their work. So in this trading they earn enough profit.  AFT provides the company broachers to the buyers.  Mainly the products are exported through the different shopping lines.  AFT mostly receive orders through agents. In the export of textile products.  AFT pays commission to them. They receive their commission from the buyer and the seller. which are working for their organizations.  Mainly the responsibilities lie on the agents in case of delayed shipments.

Ahmed Fine Textile Mills Ltd. so they also promote the company products.  Visits to the customers. Internship Report 36 .  AFT provides the samples of the grey fabric.  AFT provides the timely information to customers which help in promoting.  Their high quality of the products on the fine count the Grey cloth is also promoting the company and establishing image and goodwill.  AFT has a direct contact with the local and the foreign agents.  AFT marketing manager also visits its customers. The yarn to the customers.

preparing your income tax return or managing an international corporation.Ahmed Fine Textile Mills Ltd. Accountant is very much busy person who gives instructions to six members of finance department and checks their work time-to-time . The accounts department is responsible for the entire accounting process of the organization regarding the recording of transactions. preparing Internship Report 37 . different codes. measuring. Record of all departments like import department.His ten-year experience has made the work easier for him. So this department feels a burden of work. Export department. companies’ names are on his fingertips. recent changes in tax policies. Purchase and sale department. you are working with accounting. Accounts Manager makes the important financial decisions with consultation of Director and Chief executive of company. ACCOUNTS DEPARTMENT Accounting is the art or science of interpreting. designing the accounting policies and accounting system. and communicating the results of economic activities whether you are paying your phone bill. are maintained here. All types of tax rates. balancing your checkbook.

In order to see accounts in condense form ledger is used. Ledger represents DR or CR balance of each party. The trial balance must be equal at both sides. This is also called process of vouching. If we consider a company a cell then we can say that accounts department has role of nucleus. After this all the DR balances and CR balances of all the parties are posted in trial balance. Wrong vouching will lead to error in the system and ultimately create problems.Ahmed Fine Textile Mills Ltd. DO and other necessary documents are kept in the record room so daybook is one that can give information about parties DR and name of account CR along with amount. From daybook all the entries are posted in ledger. FUNCTIONS OF THE DEPARTMENT Very first and an important function of accounting department is recording the business transactions on vouchers. As each voucher along with its invoice. Without accounts department there is no possibility of doing business even sight weakness’ on the part of accounts department can badly effect the performance of whole organization. This is made for internal record keeping. From vouchers information is recorded in daybook and cashbook. Auditors specifically audit vouchers. financial statements and computer application. Internship Report 38 . So from ledger we can see amount that is to be paid to a party or the amount that is to be received and the balance at the end of the month. Otherwise there is any error in recording the transactions.

Ahmed Fine Textile Mills Ltd. Stores section Internship Report 39 . The financial year ends on september30 of each year. This department also designs the accounting policies. All the work in this department is being take place on accrual basis. Now trial balance becomes the source of profit and loss and balance sheet. The department prepares trial balance at the end of every three months and Profit and loss accounts and balance sheet are prepared at the end of year. The financial statements are presented to shareholders THE SETUP OF DEPARTMENT Chief Accountant Accountant Accountant Asst Accountant Computer Computer Operator Operator Cashier Cashier Record Keeper Record Keeper The accounting department is mainly divided in to following three sections: 1.

No payment is made to any body unless it is checked and verified by this section.Ahmed Fine Textile Mills Ltd. The major responsibilities of this department are • To record the store purchases • To record all store issues • To prepare various reports relating to store i. This section plays an important role in safeguarding the interest of the company as well as employees. Building Material A/C and many others.e. certain laws relating to company are as under: Internship Report 40 . General Store A/C. This section deals with many accounts heads that are concerned with stores. Packing material A/C. This section also insures all the labor laws. SALARIES AND WAGES SECTION This section is responsible of making payments to the employees. party wise purchase report To keep a check on all stores by surprisingly checking their record and physical existence of items stored. material consumption report. Such as stores &spare A/C. Salaries and Wages Section 3. 2. General Accounting STORE SECTION Store section is mainly concerned with store accounting. Because of the above mentioned duties. oil and Lubricant. This section has a key position in the company.

Sick Leaves Sick Leaves are eight in year Casual Leaves Casual Leaves are ten in each year Annual or Earned Leaves There are twelve earned leaves. In case any employee does so then he can’t avail annual leaves. Company’s rule doesn’t allow any employee to do four-day leave without application. This is given according to their per day salary multiply with number of days of holidays not availed.Ahmed Fine Textile Mills Ltd. Attendance Allowance Leave encashment is given to those employees who save their holidays and don’t avail them. Salaries and Wages Minimum salary is not less than Rs6000. The breakup of salary is as under Basic Salary Badli allowance Cost of living Allowance Internship Report ________ 50 18% of basic salary 41 . Leave Procedure There are three types of leaves.

An entry is passed on voucher while deducting income tax and this is paid to tax department Advances and Loans Advances and loans are given to the Employees on their application and are adjusted against their salaries every month. It is the sole discretion of the management whether they approve advances and loans are not Gratuity Amount of gratuity is deducted from salary of employee with passage of time and he gets a lump sum amount at retiring time Internship Report 42 .Ahmed Fine Textile Mills Ltd. House Rent Allowance Utility Allowance Special Allowance 10%of basic salary 10% of basic salary 300 Income Tax Income tax is deducted from salary of all those employees whose annual salary is greater than Rs.150000.

BANK VOUCHER (BV) Bank voucher is used when any transaction is made with bank . so accounting entries are passed on journal voucher at first step. Amount may be drawn from bank and can be deposited in bank. Now it is time to record these vouchers in books of accounts. All accounts are maintained in Multan head office.Ahmed Fine Textile Mills Ltd. Accounts Manager and Director verify the voucher respectively. If they have any question they can ask relevant person if there is no enquiry then they will put their signatures on voucher. You can receive DR advice or CR advice from bank DR ADVICE Internship Report 43 . This is also known adjustment voucher. ACCOUNTING SYSTEM Accounting System at here is centralized and on accrual basis. Vouchers are prepared after every transaction. This is prepared for adjusting entry. The process of accounting system starts from the preparation of voucher. The following are different types of vouchers prepared at AFT Mills: • Journal Voucher • Bank Voucher • Payment Voucher • Credit Voucher JOURNAL VOUCHER (JV) As accounting system is on accrual basis.

Payments more than this are made through bank CREDIT VOUCHER As name of voucher represents. Party name is debited with the amount to which payment has been made. it means bank has deducted some amount from your account or when has been made through your account CR ADVICE When issued by bank to you. This is usually sent by your customer in foreign country to which exports has been made.5000. it means some amount has been added in your account. It normally takes place when some foreign remittances have been received by bank in your account.Ahmed Fine Textile Mills Ltd. Payment vouchers are used for the payment up to Rs. this voucher is prepared when some amount is received from any party. PAYMENT VOUCHER This voucher is prepared at the time of making payments to any party. When issued by bank. In this case party name is credited by the amount that has been received IMPORTANT BOOKS • Cash Book • Bank Book • Bought Day Book • Sale Day Book 44 Internship Report .

Ahmed Fine Textile Mills Ltd. At the end of the month the balances from the bought day book is posted in the main ledger for control purposes SALE DAY BOOK In this book sale bills are entered and then posted in the customer ledger. CASH BOOK In this book cash payment and cash receipt vouchers are recorded on daily basis. At the end of month balances are posted in the main ledger for control purposes. The following are the types of ledgers maintained in this organization. When the transaction is properly recorded in the books of accounts then these balances are posted in the ledgers. Internship Report 45 . At the end of month bank account is reconciled with the statements of the banks BOUGHT DAY BOOK The bought daybook is maintained for recording the purchases made by the company. BANK BOOK This book is maintained for all the bank accounts of the company. The vouchers are numbered serial wise and cash-closing balance is calculated on daily basis. When any amount is withdrawn or deposited in the bank that amount is also recorded in the bankbook. The balances from the bought daybook are entered in the relevant supplier ledgers.

The following are the heads of accounts maintained in the profit and loss ledger: • Sales Account  Local Sales  Export Sales • Commission on sales • Excise duty on yarn • Export development Charges Internship Report 46 . bank book. customer. From basic books like cashbook. which maintain all heads of accounts from which balance sheet is prepared.Ahmed Fine Textile Mills Ltd. profit & loss. At the end of month trial balance is prepared to check the accuracy of accounts maintained during the month by observing the debit and credit balance as they are equal or not. All assets and liabilities accounted. supplier and personal Ledger are maintained in it. Posting of sub ledger is made in main ledger on closing of month. Main ledger Profit &Loss Ledger Customer Ledger Supplier Ledger Staff Ledger MAIN LEDGER It is a control ledger. PROFIT AND LOSS LEDGER In profit and loss ledger all accounts of income and expenses are maintained . bought daybook and sale daybook.

corporate freight. insurance. • Manufacturing Expenses • Administration Expenses • Selling Expenses • Financial Charges • Miscellaneous Charges MANUFACTURING EXPENSES They are like purchase of cotton. packing material and depreciation. phone and telex. vehicleup charges. advertising. commission on bank guarantees. markup on short term finances. wages and salaries. printing and stationary expenses SELLING EXPENSES These include export expenses. fuel and power. electricity. ocean freight. trailer freight and local selling expenses FINANCIAL CHARGES They are like interest on long term loan. salaries. entertainment. excise duty on long term and short term finances. rent. depreciation. Internship Report 47 . exchange risk coverage fee. communication expenses like fax. letter of credit commission. ADMINISTRATION EXPENSES These are traveling expenses.Ahmed Fine Textile Mills Ltd. repair and maintenance of plant.

PERSONAL LEDGER To record all transactions relating to the personal accounts of employees of the company. Posting in customer ledger is made from cashbook. SUPPLIER LEDGER In supplier ledger the goods supplied by the parties is recorded.Ahmed Fine Textile Mills Ltd. bankbook and daybook. this ledger is used. and the monthly deductions from their accounts of loans are recorded. legal and professional charges. CUSTOMER LEDGER It is maintained by company in which all accounts are opened to whom the company sells yarn. Advances and loans made to the employees. The balances of customers are worked out daily and the report of receivables is prepared daily and submitted to the management. Party’s account is credited and goods purchased are debited. Internship Report 48 . fines and penalties. donations. MISCELLANEOUS CHARGES Miscellaneous charges include auditors fee.

Ahmed Fine Textile Mills Ltd. are: Internship Report 49 . which this department performs. INTERNAL AUDIT DEPARTMENT Internal audit is essential for companies. Auditor gives many suggestions for the benefit of business. company has a separate department. For performing internal audit. This department works on continuous basis. Some main functions of internal audit department. Functions of department: Audit department develop audit programs before conducting an audit. The internal auditor of the company visits the mill on weekly basis and conducts the audit according to the checklist framed by the internal audit department. The main functions. The management can appoint staff to go through the business activities. Except all these there are some main functions of this department. The department is responsible to keep its eyes on the implementation of management policies. Head of this department is auditor officer (internal). It is a review of operations and record under taken within a business by special assigned staff. This department is also responsible to inform the top management regarding the accuracy of all accounting information and their analysis.

System Check The internal audit department checks whether the revised system is being followed or not. So this is duty of internal audit department to revise the system if there arises any type of discrepancy. Management policies check The top management makes policies.Ahmed Fine Textile Mills Ltd. if there is any type of deviation that is reported to the top management. Internship Report 50 . Maintenance of books of accounts This internal audit department also examines that whether books are properly maintained as required by the Accounting Standards and Organizational Policies.  System revision Discrepancies always come in any organization. Internal audit department also examines that policies are followed or not. And it is duty of the people to follow all the policies.  System revision  Management of policies check  Maintenance of books of accounts  System check.

 Checking of bank reconciliation statements every month. Internship Report 51 .  An internal auditor can check any document at any time or can ask the accountant to provide the necessary documents. Payment vouchers. Journal vouchers. Credit vouchers  Checking of trial balance statement after every three months.Ahmed Fine Textile Mills Ltd. MAIN FUNCTIONS OF INTERNAL AUDIT DEPARTMENT AT THE HEAD OFFICE MULTAN  Checking of posting from clock cards to wages sheets  Price Checking  Recovery of advances  Checking of rebates and discounts  Continuous checking of assets of the company  Checking of Bank vouchers.

• To build the image a credibility of the organization. The export manager heads AFT export department. • Market research making the better information system • Adopting the new technological a developmental changes in the field of textile. • To maximize the company profit by increasing exports. He is also making efforts for the development and the progress of the company. The export manager supervises all the marketing & export activities. Export manager is also responsible for the exploration of local and foreign markets. • Exploration of the new markets. EXPORT DEPARTMENT Export department plays a vital role in any organization. OBJECTIVES • To increase the Export of the Grey Fabric and yarn. • To earn foreign exchange for the progress of the economy of the country.Ahmed Fine Textile Mills Ltd. Internship Report 52 .

• Bank documents preparation and the follow-up. • The important function of the export department is to make shipment schedule and the planning. • Preparing the custom documents • Dealing with the agents and providing timely information to the parties. • B/L follow-up with the shipping lines. Internship Report 53 . FUNCTIONS Following are the main functions of the export department. • Maintaining the complete sale and purchase records • Export department is helping in improving the quality and betterment of the products and the company. which is also providing a service to its customers and promoting the company image. • Export system updating is also the responsibility of department.Ahmed Fine Textile Mills Ltd. • Customer correspondence as well • Export department also follow-up the local sale and purchase of the yarn and the Grey fabric. • Providing timely information about the production of the products to the customers. • Export department is responsible for the production planning and the production follow up with the mill. • Preparing the quality analysis report and sending them to higher authorities. • Visiting to the existing and new customer. • Improving the quality of the products with collaboration with the buyer and the production department.

Ahmed Fine Textile Mills Ltd. EXPORT DOCUMENTATION Export procedure is a very lengthy process. After the careful analysis of all the terms and Internship Report 54 . Because a little bit of mistake can cause a great loss to the exporter and the importer. AFT export department carefully handle all the steps involve in it. which is.  Indent  Sales contract  Letter of Credit  Custom documents  Packing list  Bill of lading  Bill of exchange  Certificate of origin  Inspection certificate  Form E  Form M  Shipping bill INDENT Indent is the first export document. send by the agents to export department. It involves a number of documents required by the importer from the exporter. • Providing timely information to the clients is the main service provided by the AFT export department.

so the later revised sales contract is issued by the export department? In which they can revised any thing. conditions such as the quality description the selvedge. Export department handle carefully the steps of that procedure. It also contains the buyer name and the reference number of buyer or agent.Ahmed Fine Textile Mills Ltd. such as the quality. packing. LETTER OF CREDIT Letter of credit is very important documents in the whole export procedure. the buyer. the accounts and the audit department of the AFT for their record purpose. the shipment schedule. Because without this the process could not be complete. As they have the products and in the sales contract they confirm the terms and conditions of the indent. shipment date. L/C is a written instruction issued by buyer’s bank. shipment date and the price of the product. SALES CONTRACT The export department after the careful analysis of indent issues the sales contract. the price & the product specification. Issuing sales contract is the confirming the sale of the products to the buyer on the specified price. price per unit. piece length. Also the contract copies are sent to the agent. authorizing the exports to draw in accordance with the terms and stimulate legal forms that bill will be honored. payment terms. Internship Report 55 . If there is changing made by the buyer or agent. commission. the packing and payments terms.

the packing list. 90 days or sight from B/L date  On the L/C the rate per unit and the shipment schedule is give on what date the products would be shipped in what quantity. In the L/C all the term and the conditions are given by the buyer. In the L/c there are important things mentioned there. the quantity of the products.  Trans shipment or the partial shipment allowed or not is also there in the L/C  All the documents such as the invoices.  The shipping line is given.  The port is given there in L/C.  The importer name and address is also given.  L/C terms are given.  The shipment date is also mentioned. What documents he needs. so the exporter only sent the goods on that specific shipping line.Ahmed Fine Textile Mills Ltd.  The terms. Internship Report 56 . the certificate of origin and other inspection certificate are also mentioned as required by the importer. either CNF or CFR.  L/C number is mentioned on the top or the L/C  Issuing date of the L/c. the amount of L/C. the expiry date of the L/C. either it is 120 days.  The complete description of the products and the rate.  The Buyer name is there in the L/C  The bank of the importer is also mentioned.

the container number E form number. The agents handover the documents which involve packing list and invoices to the shipping lines.Ahmed Fine Textile Mills Ltd. That the following quality should be dispatched on the containers specified on this L/C. The shipping lines charge their freight and other charges are paid the agents as well as for clearance of the goods from the port. the export department issues the dispatch order to the mill. AFT mostly does its shipment through the shipping companies. TYPES OF L/C • Irrevocable or revocable • Documentary or clean • Un-confirmed or confirmed • Sight The exporter has to fulfill the terms mentioned in the L/C. As the order placed by the importer is ready on the due date. Mode By sea Internship Report Document Bill of lading Carrier Shipping lines 57 . As the trailer number. quality and the quantity is completely mentioned on this invoices. Both the importer the exporter are bound to fulfill their obligation mentioned his L/C TRANSPORT DOCUMENTS The transport documents are very important because it provide the evidence that goods have been transported and it enables the importer to receive the goods from the custom authorities. The goods are loaded on the specified containers and they are sent to the Karachi port on the specified shipping line.

NON NEGOTIABLE In the non-negotiable the title of the goods is non-transferable. The name of the exporter. 2) The exporter. shipping company a airline. the quality with all the specifications required by that. Bill of lading also contains the specifications related to the importer and the exporter.Ahmed Fine Textile Mills Ltd. BILL OF LADING Bill of lading is one of the most important documents in the whole export documents. who is exporting the goods to the buyer. the total value of the goods which are Internship Report 58 . By Rail By Road By Air Receipt Road way bill Air way bill Railway service Transporters Air lines NEGOTIABLE DOCUMENTS In the negotiable documents the title of the good is transferred form one person to another when the existing holder produces the documents. In the exporting of good the number of the parties one involved. place. Because without this the importer cannot receive their goods from the destination port. 1) The firm or the company engaged in business of transporting products. AFT first of all draft the bill of lading and that is sent to the shipping line. the quantity is mentioned. the importer. such as the track company. 3) The importer who is importing the goods from the seller. the bank.

of is with the other documents by reference to the invoice number. This certificate of origin may also be made by the consultants of the importing country in the form of consoler invoice or legalize the exporter’s commercial invoice. PACKING LIST Packing list is a document. The shipping line and vessel name is given on B/L. The date of shipment is also mentioned on that. AFT export department also very quick in follow up of the B/L because they have to transfer the information to the parties. Without this the importer can’t clear the goods from the destination. These are required by the authorities in the importing countries. which involves all the complete list of the goods packed in the particular shipment. CERTIFICATE OF ORIGIN Certificate of origin shows that the good which are being exported are originate from a country form which importer is allowed. When explorer called for L/C.Ahmed Fine Textile Mills Ltd. Documents. Internship Report 59 . In order to satisfy and support a claim for the import duty. FEATURES OF PACKING LIST 1) It usually shows the marks a number mentioned on the packages. It provides a convenience to the shipping and the clearance authorities. exported. The date of the bill of lading is mentioned. B/L is a comprehensive document that is issued by the shipping line. It is very important. L/C number and by quoting shipping marks and numbers in order to identify the goods.

4) Destination of the goods. date and vessel name. Internship Report 60 . 2) The quantity of the goods. 9) Date of the form E is also on this form. the quality of the goods exported. 5) It provides a linkage with the other documents to reference to the invoice number. 3) The Terms of the L/C. The form-E declares that the export information given on the form-E are correct and will submit the duplicate and triplicate copy of this form to authorized bank. quality and quantity of the package. date. 4) It shows the contents of each package. 8) The place from where good are cleared. 5) The consignee bank. 7) The port form where the good are shipped. Through Form-E the SBP controls the overall exports of the country. what is nature. The importer bank name through countries the payment would be released. FORM-E Form E is a document issued by the exporter bank. 1) Description of the goods. Form-E contains the following important information’s.Ahmed Fine Textile Mills Ltd. letter of credit number. 6) The Invoice value of the goods in the exported. 2) It shows the weight also. 3) Each package is marked by a number.

BILL OF EXCHANGE It is unconditional order in writing. the letter of credit number. it is in those consignments where the importer wants to assure himself. the exchange rate and rupee amount. requiring the person to when it is addressed to pay on demand or at a fixed determinable future date. amount in US$. in terms of the quality. The documents should specifically identify to the goods by having a reference to the marks and numbers of the package and linkage to the other documents by reference to invoice number. signed by person giving it. addressed by a person to another. description quantity and size. (Net and gross weight). about the shipment of the correct goods. quality of the goods. CERTIFICATE OF INSPECTION Certificate of inspection is also a important document. B/E is also a important document of export. the exporter name.Ahmed Fine Textile Mills Ltd. the vessel name and the shipping line. When the L/C is opened the B/E must be strictly drawn according to the terms and conditions of the creditor may be drown on the request of the applicant or on the bank request through which the credit is opened. number of packages. Internship Report 61 . It contains the complete information about the export bank the importer name. SHIPPING BILL The customer clearing agents issue the shipping bill. the weight of the goods. the container number.

Seeds are used as the raw material for oil industry and cotton lint in the spinning of yarn. So. One is situated at Multan-Bahawalpur road. after selecting the best station.g. its staple length. which is situated at District Rahim yar khan. It is used to pay the commission to the agents. The properties of cotton fibers (a natural fiber) vary for all different growth areas for different climate conditions and form year to year.Ahmed Fine Textile Mills Ltd. Ahmed fine textile limited has also two units of weaving. district Multlan and second is under construction at Qadirpurrawn. On this the amount of the commission is mentioned against invoices. Internship Report 62 . Raw cotton is tested at various parameters e. When cotton crop is collected from fields. District Multan. AFT receives this from the agents. This unit is equipped with highly modern and automated machinery. team of professionals survey the best cotton growth areas ( called station ). PRODUCTION DEPARTMENT Ahmed fine textile limited has a spinning unit. FORM-M It is also an important. the next step is considering the ginning factories where cotton lint and seeds are separated.

trash %. floating fibers %. micronaire. yellowness and moisture content etc.Ahmed Fine Textile Mills Ltd. Yarn is produced of two types combed yarn (the excellent quality) and carded yarn (good quality). Considering above parameters cotton is purchased for the whole year consumption. color. To produce each type spinning process is somewhat different as show below: Spinning Process: Internship Report 63 . Ginners send the cotton in lots (each contain 100 bales) to spinning mills in the form of pressed bales having weight 165 – 170 Kgs each bale.

Ahmed Fine Textile Mills Ltd. First of all spinning process for combed yarn is: Internship Report 64 .

For combed yarn  Blow Room  Carding  Pre comber drawing  Unilap  Combers  Drawings  Simplex  Ring  Autocone  Conditioning For carded yarn  Blow room  Carding  Drawing  Simplex  Ring  Autocone  Conditioning Internship Report 65 .Ahmed Fine Textile Mills Ltd.

Now cotton remain here for twenty four hours to reduce moisture contents 7-8 %. feathers. Thus 120 bales are issued to the blow room. While opening with the aid of certain mechanism leaf. as cotton is Internship Report 66 . About 80-100 people are deputed here for bales opening and contamination sorting. This minimizes the variation from bale to bale and from station to station and even blend is obtained. jute. They make a blend of 7-8 stations. hair pieces and polypropylenes pieces etc.Ahmed Fine Textile Mills Ltd. small cloth pieces. Actually spinning process starts from hare: Blow Room Following three jobs are done here. Aftermath cotton is subjected to various machines having spikes and beaters. Thus blending and mixing takes place once again as the small tufts are mixed together. Contamination may be coloured yarn pieces. Micronaire value is maintained. Cleaning Cotton from various cotton areas ( stations) is so blended together that these stations should be preferably within one hundred range. 1. Opening 3. sand and motes etc are extracted from cotton with the passage of time. which open the cotton to further small tuffs. Mixing 2. Each station representing 20-25 bales.

5 inch are extracted. This is a machine which has big cylinders with very sharp wires. Here small entanglements of cotton are also extracted along with finer trash particulars e. These rollers have speed difference such that six slivers are stretched six times and a Internship Report 67 . transferred from one to other machine. The products of carding machines is called SLIVER.g. These cylinders are so placed in the machines that at various points of the machines. Dropping (waste) is separated through here through a pipeline. It is an assembly of fibers almost parallel to each other and condensed in the form of a rope. About 5000 yard of sliver are laid in ‘Cans’ (large hollow vessels of 24” dia and 48” length) Pre-Comber Drawing The cans obtained from the carding department are set behind machines called Pre-combing draw frames. cotton experiences and extensive opening and cleaning. cotton becomes cleaner and finer. small leaf and seed particulars. The dust extracted here is of two types:  Card Fly  Lickerine Up to here 12 % waste has been extracted. Fibers having length less than 0. Six cans are placed and sliver form each can is passed through rollers. Carding Cotton from blow room machines is transferred via air to the next department called carding.Ahmed Fine Textile Mills Ltd.

Internship Report 68 . In the framer case it is called single passage and the later is called double passage. Twenty six slivers cans are sent on a machines called unilap.Ahmed Fine Textile Mills Ltd. Here 15-18 % short fibers are extracted which are called comber noil (a by product used for surgical dressing ). Clean and lustrous bearing the fibers of maximum length. Sometimes this sliver is passed once through draw frames and sometimes twice. Combers Laps are fed to the next process called combing. The obtained silver is again laid down in cans. single end is obtained. Thus slivers from twenty six cans are mixed and blended together to minimize variation. Unilap Slivers received from pre-comber draw frames are once again stretched here. Drawing The sliver obtained from combers are again fed to another draw frame passage called post combing process. It results in the shape of Lap. It is a sheet wound on al plastic tube (spool). In this way slivers are blended and mixed together to minimize variation. The result of this process is also a Sliver of very fine.

the roving has been converted into yarn from of very fragile one. A 20/1 combed yarn is given about 16 to 16. Each can against experiences a stretch of six to seven times and assumes a shape of finer than sliver. This fine rope is twisted and wound on to a plastic bobbin.Ahmed Fine Textile Mills Ltd. This rope is called roving. it will be lengthened to twenty two yards(particularly to produce NE 20/1 yarn count). This roving is once again subjected to a stretching process. Their speed are so adjusted that the speed of no.3 in about 22 times more than that no.20 turns per inch (especially to produce yarn for knitting) these turns are given by the Internship Report 69 .1. Up to here process is called back process. One hundred and twenty cans are placed at the back of each simplex machine. it is passed through three pairs of rollers. As the roving is unwounded from the roving bobbin.Thus at the time of having third pair of roller. Simplex Here the objectives are  Drafting  Twisting  Winding (Roving) The drawn cans are subjected to a next process called simplex. Ring It is in fact yarn production department as yarn count is controlled here. In this way if one yard of roving is subjected to three rollers. Each roving bobbin contains about 2000 to 3000 yards of roving.

some thin and thick places in yarn. dint of a traveler whose life is about seven days only.166 lbs is obtained. This small metallic part not only imparts twist to the yarn but also winds it on the ring bobbin. RPM (revolution per minute) as controlled through a meter on the machine and is set as per requirement. The ring is mounted on the spindle which revolves about 16000 to 17000 per minutes. a certain weight e. Then they are stacked in packing department for conditioning. carding and comber is compensated in the form of moisture. Conditioning After a paper decided length is wound on a paper cone. The cones are left here for about twenty-four hours and then packed in Internship Report 70 . During winding process waxing is done only with the hosiery yarn to reduce its friction with the needles of the knitting machine. In this way strength of yarn is improved. Also the loss due to extraction of waste in blow room. g.Ahmed Fine Textile Mills Ltd.g. which controls hairiness and contamination respectively. After the weighment of every cone it is inspected through Ultra Violet device. Each ring bobbin contains 55 to 60 grams of yarn. 4. Such faults are cut and joined again automatically. Auto Cone Three jobs are done here Faults removal: This yarn has some faults e. Winding yarn on paper cone Here now we have been equipped with a latest technology called PERLA and SIRO.

Marks are printed on cartons as per customer’s requirements and now they are ready for dispatch. Suppose that there are 30 hank equal to one pound our cont will be NE 30/1. These are as under: • Yarn Report • Waste Report • Daily Cotton Consumption Report • Efficiency Report (Spindles Worked) • Daily Production Report Internship Report 71 .Ahmed Fine Textile Mills Ltd. The final mark that is “Made in Pakistan” is placed. Then count the hanks that will be our count.5 meter) X (80 round) = 120 yard Hank (120yards) X (7) = 840 On the scale put on one side on pound and on the other side put the hanks. Count Lea (1. corrugated cartons. TYPES OF PRODUCTION REPORTS Different types of reports are prepared when yarn is received from the spinning section an all records are maintained completely.

Weaving process Internship Report 72 .Ahmed Fine Textile Mills Ltd.

It’s a design frame in which the required weave is adjusted to produce a design. In case of 3/1 weave there are four ends/dent in a reed. YARN REQUIREMENTS After the adjustment of the reed the yarn requirements is calculated. The production process starts when the negotiation between the buyer and seller completed. REED Reed means of order. One bag of yarn contains =100 lbs Internship Report 73 . During the production process first of all the reed per dent is calculated. The requirements of yarn are based on per day production of that quality and also depend on the weight of the yarn. The order is then faxed to the mill and the production at the mill starts. Example.Ahmed Fine Textile Mills Ltd. On the basis of this calculation the required weave is produced. a.

) Common types of yarn: 7/1. WARPING. One truck contains =130 bags (Avg. 10/1. 8/1. The required number of ends/inch is calculated and feeded in the machine from which it is converted into required number of beams. and 20/1& 24/1 Unless the mill got an advice from the head of they does not manufacture of the fabric. SIZING. 16/1. In this process the yarn from little is transferred to required numbers of beams.0936 840 x warp count Same formula will be for calculating the yarn requirement of weft also.Ahmed Fine Textile Mills Ltd. There are two main objectives of sizing of yarn. 12/1. Calculation for yarn requirement of Warp count: End per inch x cloth width x 1. Warping is the process of withdrawal of yarn from Cones and transfers it to big beams. Internship Report 74 .

KNOTTING In this process if the quality of one beam remains the same and the quality of one beam ends then the other beam of the same quality is joint with the threads of first beam.is to strengthen the fibers. COMPRESSOR. which extract fresh air. DRAWING IN In this process if the quality applied on one beam is to be changed then the process employed for the changing of one quality in to another is known as drawing in. In this process the warped beams are passed through a chemical process so that yarn could bear the intensity of the weaving process and they do not break . WEAVING When the yarn has gone through all the above processes. this is known as knotting process. passed this air to the air jet looms. These compressors store this fresh air and after going some process. it is also known as changing of article. However this process is not applicable if of the weave is changed. 1.is to achieve the required number of ends on one single beam.Ahmed Fine Textile Mills Ltd. 2. now it is ready to pass through the weaving process. In this process Internship Report 75 . In mills there are big compressors of air.

After going through the grading and mending process the fabric is re-inspected again so that there is no chance of error. and from there they went to Karachi for shipment.bales 3: . All the above mentioned process are subsidiary of the weaving process. the yarn is converted in to fabric. When the required fabric has been packed it is loaded in 20 or 40-ft containers.rolls 2: . PACKING There are three main ways in which the fabric is packed.Ahmed Fine Textile Mills Ltd. First of all the produced fabric is passed through grading and mending machines in which if there is any fault in the produced fabric it is removed on the spot. 1: . Internship Report 76 . mending and inspection. if the quality is same it will be packed in rolls and bales and if the quality is in thousands it will be packed in pallets.pallets The only difference between above three packing is the total length in which the fabric is packed. INSPECTION When the required fabric is produced it is ready for grading.

The PRM for 3 width machine = 280 The PRM for 2 width machine = 305 The PRM for 1 width machine = 305 The efficiency of machine varies from 85 to 95 percent. PRODUCTION CALCULATION OR LOOM EFFICIENCY PRODUCTION The revolution per minute of Sulzer machine varies from 280-305 In Diamond fabric the Sulzer machines can produce width up-till 153 inch. There is always a margin for rejection also which is assumed as 5%. This 153-inch can be divided into 3 widths maximum and one width minimum. It can never be 100%.Ahmed Fine Textile Mills Ltd. however practically above machine can produced width-up till 140 inch. PRODUCTION CALCULATION. Internship Report 77 .

P.e.Count determination: in this process the type of count is determined.0936 In case of Air jet looms the revolutions per minutes varies from 400 to 775. 2.Tearing: it also checks the tearing capacity of fabric 3.Ahmed Fine Textile Mills Ltd. Whereas in normal looms the piece of length varies from 200 to 300 meters. [PRMx 60(R. 1. 4. Internship Report 78 .Magnifier glass: this glass checks the type and quality of fabric closely. Of picks per inch x 36 If we want the above calculation in meters we will divide the above answer by 1.Tensile: to check the strength and density of fabric. 2000 OR above. BATCHERS They are used when we want to warp more of piece length into yards/meters i.H) x 24 (# of hours in a day) x # of width] x Efficiency No. LABORATORY In laboratory the following tests of fabric are done.

The Management of AFT has been successful in creating and maintaining the quality culture in the organization. Daily quality report is sent to headquarter and it is checked here. therefore. Sine 90 to 95 percent of production is exported.Ahmed Fine Textile Mills Ltd. Following are the characteristics of the Yarn that are checked for the equality assurance: • Weight of Fiber • Length and Strength • Dia • Weight and Final Yarn • Evenness of Yarn • Relative Humidity • Temperature Internship Report 79 . QUALITY CONTROL MANAGEMENT Quality Control refers to setting certain standards for production and matching production with those standards. it is highly intensified. Management of every company is specially committed to the good quality both in production and end results.

 AFT has a good financial resources. Which is improving the progress of the company? Internship Report 80 .  Good know how about the textile business.  AFT has food relations with local foreign buyers. So they can invest in other textile related products. Which is reducing the cost of production?  AFT has well qualified staff. SWOT ANALYSIS STRENGTHS  Cheap labor is available to AFT which is reducing the per unit cost.  AFT has its better market information system.  Cotton is also available at cheaper rates.  The products are at compatible prices.  It has its own spinning unit and the weaving unit also.Ahmed Fine Textile Mills Ltd.

 Our cotton fiber is Short . AFT should do the more effort in promotion.  Per unit cost is not decreasing .A and the Europe markets.  Non-professional attitude.Ahmed Fine Textile Mills Ltd. WEAKNESSES  Lack of HR resources development. Internship Report 81 . OPPORTUNITIES  AFT has opportunity to export to the U.  Delivery time is more due to this the shipment are delayed  There is more decentralization in AFT.  AFT is not exporting value added products. Which is decreasing efficiency.  Lack of promotional activities.Which is decreasing our productivity in fiber.  Less competitive in the fine count.So we are less competitive in count Fiber.S.

which is paid to the agents.  The company should make efforts to improve the technical skills of the labour and employees which will improve the overall efficiency and productivity of the organization  Govt.  Political instability is also a major threat  Govt.  The AFT can move in horizontal and the forward integration.  AFT can play the role of agent. strict policies about the textile sector. Internship Report 82 .  AFT has opportunity to explore new international and growth oriented markets for the exports of Fabric. THREATS  WTO regime will be a great threat.  The unreliable agriculture sector.  AFT can better the marketing techniques. is also providing lot of incentives to the exporters.Ahmed Fine Textile Mills Ltd.  The company should import the latest technology to decrease the per unit cost of the production.  There is more scope of exporting to these markets. So they can save the commission.  The decreasing interest rates on the loans.  The company should go in dying process also.

Internship Report 83 .  The AFT will face tough competition in domestic and international markets.Ahmed Fine Textile Mills Ltd.  AFT has a threat from the domestic and the international competitors.  China.  Quotas are lifting AFT will face the major threat. Thailand and Indonesia are the emerging giants in textile.