Final Project

Of Principles of Management on Structure,

Culture, Strategic Management, and Corporate
Social Responsibility of an Organization.

Pakistan Institute of Development Economics

Islamabad

Course Instructor :

Mr. Hassan Rasool

Group Members:

M. Usman Khalid (Group Leader)

Hameed Ullah Khan
Naila Ashraf
Muhammad Umar
Muneeba Hassan
Shahbaz Ellahi Awan

Submission date:

19/01/2009

Acknowledgement

Interviewees:

Table of Contents
Brief Introduction of Kohinoor Textile Mills Ltd.
Introduction
History
Mission Statement
Structure
Culture
Strategic Management
Corporate Social Responsibilities
Financial Review
Conclusion and Suggestions

Brief Introduction of Kohinoor Textile Mills Ltd. Pakistan

Kohinoor textile Mills Ltd is part of Kohinoor Maple Leaf Group, which was born from the
trifurcation of the Saigol group of companies and is a reputable and leading manufacturer of
textiles and cement. KMLG comprises of Kohinoor Textile Mills limited (KTML) and Maple Leaf
Cement factory limited (MLCF). Both companies are incorporated in Pakistan and are listed on
three stock exchanges of the country.
KTML was established in 1953 at Rawalpindi and is one of the oldest companies of Pakistan
with over 50 years experience in textile manufacturing. It was initially set up as a spinning and
weaving project with 25,000 spindles and 600 looms. However, after decades of aggressive
expansion and modernization KTML has emerged into a fully vertically integrated home
textiles company with state of the art capabilities for spinning, weaving, dyeing, printing and
stitching. The company has a diverse customer base with sales in both the local and export
markets. The main international markets include Asia, Europe, USA and Australia.
Current Capacity
Kohinoor Textiles comprises of two spinning divisions located at Rawalpindi (KTML) and
Gujjar Khan (KGM). There are a total of nine units with 151,000 spindles capable of spinning a
complete range of coarse and fine count yarn from natural and manmade fibers. In particular,
Kohinoor specializes in fine count yarn for high thread count home textile products. The total
production of yarn is 28,800,000 Lbs per annum. Five units with 85,500 spindles are at
Rawalpindi and four units with 65,500 spindles are at KGM.
The dyeing and printing capacity is 48 million meters per annum and the capacity for pretreatment and bleaching is 6 million meters. The maximum width capacity for bleaching is 3.4
meters and for dyeing and printing is 3.2 meters.
OBJECTIVES OF THE COMPANY
1. To carry on the business of , cotton spinners, and doublers, linen and cloth manufacturers,
jute, flax, hemp, cotton and wool merchants, dyers and manufacturers of bleaching and dyeing
materials in Pakistan and all over the world.
2. Throughout Pakistan and throughout the world, to purchase , weave and otherwise
manufacture, buy and sell and deal in all kinds of cloth and other goods and fabrics, whether
textile netted or looped.
3. To carry on the business of drapers, furnishers and dealers in waterproof materials and
fabrics, silk weavers, cotton spinners, cotton ginners, cloth manufacturers, furriers,

haberdashers, hosiers, Pauline, American cloth, floor cloth and all kinds of imitation leathers
and rubbers.
4. To carry on all or any of the businesses of silk mercers, s manufacturers, importers and
wholesale and retail dealers of and in textile fabrics of all kinds.
5. To carry on the business of mechanical engineers and manufacturers of machinery and
implements of all kinds .
6. To lease, let out on hire, mortgage, sell or otherwise dispose of the whole of any part of the
undertaking of the Company, - or any lands, business, property rights or interest therein.
MISSION STATEMENT
Kohinoor Industries has always adhered to high ethical standards and strived to be the
industrys preeminent manufacturer. The companys Mission Statement encompasses four
parts: Vision, Mission, Values, and Principles.
Vision
To be achieved through our Mission, Kohinoor Industries Vision is "to be a world-class
company as defined by the customers we serve."
The Kohinoor Textile Mills Limited stated vision is to
achieve and then remain as the most progressive and profitable
Company in Pakistan in terms of industry standards and stakeholders interest.
Mission
"We will exceed our customers expectations in quality, service, and value; continually
increase shareholder value; and provide growth opportunities for our people." The Mission is
supported by our Values and principles:
Values
"Honesty, integrity, and hard work."
The companys success, as well as the success of individual employees, can be traced to
embracing and practicing these values. Flowing from the values of honesty, integrity, and hard
work are a set of principles that we believe in and use to govern our behavior as Kohinoor
Industries employees.
Principles
"People, relationships, customer, citizenship, innovation, and results."

People
Kohinoors philosophy is to attract, develop, and retain the best people. We focus on growing
and developing these people through continued education, training, and work experience.
Relationships
We strive to establish and maintain honest relationships with all stakeholders in the company.
This is to include employees, shareholders, customers, suppliers, and the communities in
which we live.
Customer
- We recognize that our customers and our ability to exceed their expectations are critical to
our total success
Citizenship
In the communities in which we live and the industry in which we work, we will actively strive
to contribute to a better environment for everyone.
Innovation
In an ever-changing marketplace, new products, services, and technologies are the lifeblood
of our business.
Our corporate mission:
Put the customer first always.

Be flexible to the customers needs.

Adhere to the highest quality standards.
Think innovatively but make informed business decisions.
Deliver results

Quality Certifications:
SA 8000:2001
Confidence in Textile from BTTG Manchester
(According to Oeke-Tex Standard 100)
Cerficate of Approval
ISO 9001:2000
En ISO 9001: 2000
BS En ISO 9001:2000
HEMA Certificate

What is an Organizational Structure?

An organizational structure is a mostly hierarchical concept of subordination of entities that
collaborate and contribute to serve one common aim.
Responsibilities, authorities and relations organized in such a way as to enable the
organization to perform its functions.

Organizational Structure of KTML

The organizational structure of Kohinoor Textile Mills Ltd. is flat and the flow of authority has a proper
channel as shown in the organizational chart. The chart is divided into a systematic manner into
different boxes while each box denotes a department or section headed by an incharge who
supervises plans and controls the operations and affairs of the company.
This organizational chart shows the flow of authority and responsibility from top management to lower
management. But according to any observations and personal judgment, there is a diagonal and
formal relationship between management whiles the flow of authority in the chart as formal, which
encourages bureaucratic trends.

ORGANIZATIONAL STRUCTURAL DIMENSIONS

1) Formalization

High

Implementation according to document.

2) Standardization

Low

Work is defined so standardization is high.

3) Specialization

High

Dividing work activities into separate job tasks.

As there is a separation of departments e.g.
spinning, weaving stitching, and dying. So at
KTML phenomenon of work specialization is
deeply held and widely shares.

4) Centralization

Moderate

Managing Director holds the most of the

authority.However, decentralization exists at middle
level of management to some extent.

5)Hierarchy of authority

combination Hierarchy of authority is blend of both horizontal and

vertical

7) Professionalism

moderate

Top management has moderate orientation. The line

staff has average

8)Control

Mechanist

Company needs enough control for stability.

9) unity of command

exists

Unity of command exists every department.

10) Span of control

Span of control is narrow. Therefore organization is

less efficient but more effective.

11) Unity of direction

exists

Managers and workers are provided with single plan

of action.

12)scalar chain

Exists

Scalar chain exists from the top level management to

the lowest level.

13)Chain of command

high

We clearly see from the organ gram that

there is certain chain of command being
followed e.g. finance KTML is reporting to
General Director Finance.

14)Process
departmentalization

exists

Process departmentalization is adopted at

middle level of management at KTML.

15)Functional
departmentalization

exists

There is functional departmentalization

implemented at upper level of management
e.g. Purchase, IT, Shipping and Logistics,
Finish Folding, Training Centre. All above
departments are reporting to director.

EXPLANATION OF ORGANIZATIONAL CHART

LEVELS OF MANAGEMENT

We can subdivide the mill's management into the following three main levels.
1. TOP MANAGEMENT
Consisting of Chairman, HR & Admin Manager, Senior Manager Finance & Accounts, Senior
Marketing Manager and General Manager. The Top management formulates policies and makes
decisions about the company activities for achieving the objectives. General Manager implements
these policies and decisions in the mills. While General Manager's authority consisting of the following.
Makes decisions within the scope of his own authority. Assigns tasks to subordinates in their areas.
Expects and requires satisfactory performance form subordinates.
2. MIDDLE MANAGEMENT
This level of management consisting of Assistant Manager, Spinning Master, Labor Officer, Security
Officer and Time Officer. This type of management receives orders from General Manager and
implements them through the co-operation of lower management.

While the main responsibility of middle management is to control and direct the operations with the
consent of General Manager to get work done. It involves in standardized production, supplies, good
working conditions and definition of standard performance and reporting of flow of work.
3. LOWER MANAGEMENT
This department is headed by Assistant Manager who is also the incharge of accounts section.
Assistant Manager controls all the activities of the mills according to the rules and regulations receive
from General Manager. While he performs the following main function: to maintain good relations with
outside public. Good relations between Govt. and mills. Good relations with general public.
Administration of the resident area of the mills. Administration of the employees who are working
outside the production department in the mills. Dispatching of goods according to the orders of the
Head Office and pay excise duty on those goods.
Receiving of raw materials for production department and pay custom duty on the material. Receiving
orders from Head Office and implement those orders under the supervision of General Manager.
Giving daily information about the production and other activities to the Head Office.

Major department of KTML

GINNING DEPARTMENT

SPINNING DEPARTMENT

WEAVING DEPARTMENT

STITCHING DEPARTMENT

PROCURMENT DEPARTMENT

QUIALITY ASSURANCE DEPARMENT

MARKETING DEPARTMENT

PRODUCT DEVELOPMENT DEPARMENT

CULTURE
Organizational culture is an concept in the field of management studies. This describes the
psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization.
It has been defined as "the specific collection of values and norms that are shared by people and groups
in an organization

KTML CULTURE DEFINED

Organizational values known as "beliefs and ideas about what kinds of goals members of KTML
should pursue. Organizational values develop organizational norms, guidelines or expectations that
prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of
organizational members towards one another.
Strong culture
Strong culture is one in which key values are deeply held and widely shared, having a grater influence
on employees. The more employees accept the organizations key values and the greater their
commitment to those values the stronger the culture is. Strong culture helps firms operate like well
oiled machines.
Strong Culture observed at KTML
At KTML, we observed that there is very strong culture. All the employees are punctual. There is no
compromise on cleanliness. Neatness and cleanliness is strictly observed. There is separate uniform of
workers in every department. Similarly separate security passes are required to enter into each
department. There is strict check and balance on security. Guards are highly alert every time. And
snap shooting is strictly prohibited due to security concerns. At that place, if someone is found holding
camera or mobile in his hand, strict action is taken and respective things are confiscated at moment by
security guards. At KTML, there is a culture to warmly welcome the visitors. We were privileged to
have 3 hrs even from the busiest GM HR/ADMIN. We were cordially allowed to visit the various
departments of the mill. We observed different processes of production e.g. ginning, spinning, weaving,
dying, stitching and packing.

For KTML, the employees are considered as a value able asset to the organization. There is culture of
care and welfare of their employees. For health and safety purpose, a great deal of initiatives are taken
and implemented e.g. the workers are provided with ear plug, face masks and protective head helmets
so that they may avoid injury and protect their vital organs during work. We also observed that the
administration has provided the work space
with proper ventilation and air conditioning system.
Moreover, most of the supervisors were certified first aid providers so that in case any accident, they
may provide with first aid at the spot.
New employees are taken on merit basis. Merit is the criterion, which is strictly followed at KTML.
There is an internship of 4 to 6 six weeks in which fresh graduates are trained and informed about
KTML culture. Minimum incentives are given during this period. At the end of this probation an
evaluation is conducted and if the employee is considered fit for the company then he is hired and
provided with handsome salary and good incentives.
All these factors contribute to the growth and development of the strong culture which is already deep
routed in KOHINOOR TEXTILE MILLS LTD. People at KTML do the things expected of them. They do
these things because they consider them right.

Seven dimensions of culture at KTML

Attention to detail.
It means degree to which employees are expected to exhibit precision analysis and attention to detail
At KTML, employees do show accuracy in their work and they are kept under the keen observation and
they analyze the different situation as well. They gather the detail and they come up with deep analysis
and they are attentive towards detailed information by the management.
Outcome orientation
It is degree to which managers focus on results or outcomes , rather then how these outcomes are
achieved. At KTML, the managers both consider the outcomes and they also pay attention to how
these results are achieved to maintain their quality.
People oriented
Most of the decisions at KTML are taken at managerial levels and higher management do consider
people important. And they are also concerned about the effects these decisions can have on the
people concerned.
Management consults with the employees on important issues as well.

Team orientation.
At KML team orientation is an essence of work at non managerial levels to perform specific jobs in
respective departments.

Aggressiveness:
Employees are cooperative and competitive at non managerial level but they are aggressive and
competitive at middle level of management.

Stability:
There is strong status quo being observed at KTML. Organizational decisions and actions strong stress
upon the above.

Innovation and risk taking:

Innovation and risk taking is given considerable attention at middle level of management for e.g. in
marketing and product development department. Reason behind is to adopt the ever changing trends
and to cope with the customers demand. But as KTML is a manufacturing concern, so they discourage
these terms at non managerial levels as they have to adopt sequential process to get their job done.

Aggressiveness:

Degree to which employees are aggressive and competitive and cooperative. Employees are
cooperative at non managerial employees but they are compitive at middle level of management.

Strategic Management:
Strategic or institutional management is the conduct of drafting, implementing and evaluating
cross-functional decisions that will enable an organization to achieve its long-term objectives.
Managers make strategy for the long term planning to achieve the goals. Strategic
Management is what managers do to develop strategies of an organization.
Strategic Management process is a six-step process that encompasses strategy planning,
implementation, and evaluation. First four steps describe the planning that must take place,
implementation and evaluation are just as important.

SWOT Analysis:

SWOT analysis is a methodology of examining potential strategies derived from the synthesis
of organizational strengths, weaknesses, opportunities and threats (SWOT).
The partnering of the different elements and the extensive data collected as a result of the
analysis can serve as a spark for roundtable discussions and refinement of current strategies
or generation of new strategies.
These strengths, weakness, opportunities and threats play vital role in determination of what
sort of strategy should be adopted by an organization.

STRENGTHS
HAVING OWN ELECTRICITY PLANT
KML having own electricity power plant which is producing not only for the KWML but also providing
electricity to other companies and to govt. at subsidy rate.
ERP SOFTWARE
ERP (Enterprise Resource Planning) has been installed in KML thats why company is saving all
records in systems and having huge database.
POWER LOOMS
KML has purchased latest power looms Toyota Air Jet Power Looms. Thats why they have reduced
the production cost and have increased the quality and efficiency of their textile products.
CROSS CULTURAL COMMUNICATION
In KML there are near about 4500 employees who are from different environments and having different
cultures but fortunately there is no cross cultural communication.
MARKET REPUTATION
KML is one of the major Mills in Pakistan thats why they have little bit reputation in local market and
having trust from investors

WEAKNESSES
EMPLOYEES MOTIVATIONAL LEVEL

The one weakness of KML is that their employees are not motivated thats why they are getting off and
putting their resigns in front of managers and executives. This is the responsibility of HR department to
find out at to see at the time of hiring them that what the thing is that their employees can be motivated.
EVERY BOOKED ORDER IS DELIVERED LATELY
The delivery of each contract is always not done on time. The customer has to wait for 4 to 5 weeks to
get his/her desired product. The main reason is that late purchasing of raw material. Raw material just
like Yarn and Sizing material is not available on time and some time it happens that there is shortage
of raw material during the running contract thats why production department has to wait for the raw
material.
ADMINISTRATIVE EXPENSES
There are high overhead charges through out the year particularly administrative expenditures.
Management whether it is lower management or upper management, the expenditures are same but
company is getting equally profit from them thats why expenditures are increasing.
RELIABILITY ON FOREIGN CUSTOMERS
Always organization has to rely on foreign customers. KTML is too much depending upon their foreign
customers but because of rapid changes in political situation, trade & export laws it would become
risky and loss of customers.
COMMERCIAL DEPARTMENT
Commercial department of KML is showing its little bit bad performance. Means always the yarn is
purchased late and on credit and payments are done by the department always very late. There is no
proper or pre-plan for the month or for couple of weeks so that amount should be received to pay the
suppliers. Each time purchasing of yarn is done belatedly so that looms not run and hence per day cost
increased and depreciation also.
GODOWN POSITION
There is no proper placing for final products to place them safely and at the time of their dispatch there
is possibility of mistake.
ERP SOFTWARE

Its good that KML has ERP software in their systems. But there are number of errors that are occurred
much time. For example, during the dispatch of product, you have to click all the rolls manually. There
is no option to select them all and other problem is to calculate the weight of packed rolls. You have to
do all these things manually.
COMMUNICATION GAP
There are a little bit gaps in communication between the departments. May be these confirm each and
every thing from each other but still they make mistakes and blame each others to safe them.
MARKETING OF TEXTILE PRODUCTS
KML has no proper planning for the Marketing. They advertise about their selves only from
newspapers. Thats why limited number of people knows about them.

OPPORTUNITIES
NEW TECHNOLOGY
The technology has been improved for the textile industry and these technologies are being
acquired by the international competitors as well as by local competitors so they are producing
good quality textile products and increasing the efficiency as well as decreasing the cost of
production. KWML has the opportunity to invest for the new technology. By acquiring the latest
technology, they can increase the production quality, efficiency and can decrease the cost of
production.
MOTIVATING THE EMPLOYEES
HR department can prove and show them they are here for employees by motivating the
employees performing their best. They can find the motivation level of their employees and
give them incentives to motivate them.
PROJECTS FOR THE LOCAL MARKET
KWML has the opportunity to capture the market share locally by launching new projects just
like they have launched Dhanak in August 2008. They can start new projects in garments,
Apparel or Home Tax, Dyeing, Hosiery.

ADVERTISING
KML has the opportunity to advertise about their selves to promote their textile products.

They can advertise in international magazines about themselves

KML can publish its own local business magazine to promote themselves

Can also be advertised over the internet (electronic Marketing)

KMLS OWN SHOPS

KML can open its own shops in local market where they can display their garments products
(socks, Trousers) and Apparels as well as curtains.
ONLINE SHOPPING STORE
KML can open its online store where they can show their garments variety and apparels. The
advantage of this step would be

Online Marketing

Capturing the market over internet internationally

Capturing the market over internet locally

The material which you put on your fair price shop can be sold out at online shop

THREATS
POLITICAL INSTABILITY
As we all know that the political situations of Pakistan are one of the worst situations of
the whole world. Each new government establishes its new rules and regulations which impact
the industries badly. there are many major issues which are affecting the textile industry as
well as other countries .

increment in the prices of Gas

Per liter increment in price of petroleum .

No subsidy for the research and developments in the textile industry.

Against these rules and implications, All Faisalabad Textile Mills boycott in July 2008 by
shutting down their Mills and factories. Now the government has provided them some subsidy
in gas field.
HIGH CONSUMPTION OF PETROLEUM
The high consumption of the petroleum is also the major issues because in international
market, their prices are going up and touching sky, due to which the freight costs are
increasing day by day and hence the cost of production, is also increasing rapidly which is
becoming the reason of losing foreign customers of Pakistan.
INCREMENT IN FREIGHT CHARGES
The prices of petroleum have been increased and still increasing rapidly. Thats why the
freight charges have been increased and the cost of productions has also been increased by
the huge amount. Due to these increments, the sale price has also been increased but
customers are not ready to pay more for a good quality instead of better quality. And transport
companies are demanding more increments to use their transportation services.
INTERNATIONAL AND LOCAL COMPETITORS
One of the major threats at international level which KML and textile industry of
Pakistan has to face, is international competition which is growing up and competitors are
capturing the market share rapidly thats why Pakistans market share in foreign market is
cutting down gradually due to high cost but poor quality of their textile products.

PEST ANALYSIS
POLITICAL FACTOR
Uneven political conditions, deteriorating law and order situation and instability in gas and electricity
prices are adversely affecting the textile sector, while government has hardly taken any step to give
some relief or incentives to the mill owners. Textile mill owners and exporter have strongly denounced

the recent increase in the gasoline prices and demanded from the government to withdraw the recent
increase and take serious steps to help textile industry survive through difficult times According to the
sources, if prices continue to increase at current rate, the textile industry would find it difficult to survive
as the recent increase has already proven deadly and many mills have started to shutdown in the wake
huge price increase. It was also witnessed that due to prices increase in gas has not only adversely
affected the productivity of the textile industry but has also caused sudden increase in the production
cost and has badly affected the economy of the country. On the other hand, textile and the other
exporters also facing a lot of challenges due to increase in the production cost of the specific export
goods, while such hurdles badly affected the Pakistani exporters to meet the challenges and compete
in the local and international markets. Exporters are demanding that government should give them
facilities to cope with the existing challenges and not get involved in favoritism.

ECONOMICAL FACTOR
Economical factors are also disturbing the all industries of Pakistan as well as the textile industry. From
1999 to 2008 the inflation rate has been increased by 100%. The last and current Government has
been failed to control the economy. As the prices have been increased, the suppliers try to get and
save more profit from their investments. Thats why prices are decided and put with a high return in
terms of profit. Before 2008, textile industry was getting number of incentives from the government just
like R&D (Research & Developments) and subsidies on the utilities. But some companies misused
these opportunities and unfortunately Govt. pulled back these types of incentives.
The main problem with the textile industry is shortage of electricity, gasoline and petroleum, due to
which Textile industry is bearing too much cost that why they have to increase their prices to earn profit
or for break-even. There are some companies which have their own electricity plants but they have to
spend a lot of money to run them.
Other problems which are facing by the textile industry of Pakistan are

Not availability of skilled labors.

Labors cost is increasing rapidly

Loosing quality of its products in both markets domestically and internationally

Poor monitory and Fiscal policies of the Govt. of Pakistan

Uneducated people

Investors are pulling out their capital from the market quickly

Foreign Investments are not coming towards Textile industry

These are the factors which are disturbing the textile industry strongly economically.

SOCIOLOGICAL FACTORS
Textile industry affecting the society and environment in number of ways, some of them are mentioned
below.

Polluting the air by pushing out ruins of chemicals. Different gases in air react with these ruins
which become dangerous for human beings.

No proper system to throw out the useless materials and chemicals.

Most of the useless materials and acids are thrown into the fields which are react or disturb the
agricultural products seriously.

Since the cost of the production and labor cost are increasing day by day. Thats why the final
product cost is also increasing thats why people are buying low quality products and not
spending too much to purchase.

Textile companies are firing the labors and employees as well because of high production cost
and salaries thats why the unemployment rate is increasing day by day which is not good for
the industry as well as for the country.

TECHNOLOGICAL FACTOR
The technology has been improved and updated in the textile industry of Pakistan and some of the
companies in textile industry are acquiring these technologies. By using new technology not only they
improve their quality and efficiency but also improve their production as well as reducing the cost of
production.

Corporate Social Responsibilities:

Corporate social responsibility (CSR), also known as corporate responsibility, responsible
business, sustainable responsible business, or corporate social performance, is a form of
corporate self-regulation integrated into a business model. Ideally, CSR policy would function
as a built-in, self-regulating mechanism whereby business would monitor and ensure its
adherence to law, ethical standards, and international norms

Corporate Social Responsibilities of Kohinoor Textile Ltd:

COMPENSATION BENEFITS & FACILITIES:

Kohinoor Industries Ltd. provides following benefits and services to it's employees:

Bonus:

Profit Bonus is paid to all employees every year depending on profitability of the company.

Recreation Allowance:

Recreation allowance equal to one month basic pay is allowed to an employee who has
completed yearly service without having absence or leave without pay to his credit during the
year.

Attendance Allowance:

All employees whose basic wages + coat living allowance do no exceed Rs.1000/-P.M are
paid Rs.40/- P.M. as Attendance Allowance if they have no absence or leave without pay
during the month.

House Rent Allowance:

All employees who are not entitled accommodation by the company are paid house rent
allowance at the rate of 10% of the basic pay per month.

Insurance:

All employees of the mills are insured under State Life insurance. In case of any accident or
death of employees, the insurance company pays insurance money to nominee.

Leave:

Three types of leaves are given to the employees:1. Privilege Leave (Annual Leaves)
2.Medical Leaves 3.Casual Leaves( For staff, 8 casual, 10 medical and 15 annual) For officers
10 casual, 10 medical 15 annual.

Gratuity:

Gratuity is granted by the mills on resignation from services or termination from services for
any reason other than misconduct. While 20 years of services prescribed for the payment of
gratuity by the company. The rate of payment of gratuity is 20 days wage for every completion
year of services.

Economic and other Incentives:

Company also provides credit facilities to its workers without any interest. While this scheme is
known as advance payment scheme and small amount is deducted from the employees
wages to recover the credit granted by the company.

Dearness Allowance:

Like government employees this mills also pays dearness allowance to its workers.

Traveling Allowance:

Traveling allowances are paid to those workers who travel for the mills work.

Free Uniforms:

The company issues uniforms to foremen, peons, watchmen and security staff at free of cost.

Accommodation:

Accommodation is provided to about 80% of the employees. Electric, gas, water supply and
flush system facilities are made available by the company.

School:

High school for boys and girls, and primary school for both are functioning in the mills colony.
The company provided beautiful buildings for schools. Till 1971, the Company was running
these schools at it's own cost. After that the same were nationalized.

Welfare Centre:

In the Welfare centre workers club building is provided. Shopping complex to provide essential
goods also exists.

Canteen:

Company is running the mills canteen round the clock for workers welfare. Meals and tea are
sold at subsidized rates. Company is contributing monthly subsidy Rs.24,000/- P.M. on this
account.

Medical Centre:

In addition to the Social Security Hospital the company has it's own Medical Centre for those
employees and their families who are not covered under the Social Security Scheme. Medical
Officer and Para-medical staff is employed in the centre.

Mosque:

For the convenience of its employees the company has provided a very beautiful and
commodious Mosque in the mills premises. The company bears all expenses of the Mosque
including pay of the staff employed therein.

Social Obligations
We comply with all applicable labor laws;

Company Profits Act, 1968 (Workers Participation)

Act regarding participation of workers in company profits.

Employee Old Age Benefits Act, 1976

Act relating to old age pension.

Employment of Children Act, 1991

Act to prohibit child labor

Factories Act, 1934

Law regulating labor in factories.

Provincial Employees Social Security Ordinance, 1965

Scheme providing health benefits to employees or their dependents.

Industrial Relation Ordinance, 2002

Law relating to trade unions & regulations of relation between employer &
worker.

West Pakistan Industrial and Commercial Employment Ordinance, 1968

Law relating to industrial and commercial employment

Workers Compensation Act, 1923

Act provides for the payment by employers to workmen for compensation
relating to injury by accident.

Bibliography:
For successful completion of this project we have utilize different available resources, from which we
have obtain required data. These resources lie in both digital and analog form. Most of the information
is obtain from Internet, while a visit to company is also made to get further information. We are thankful
to company management who had welcome and cooperate with us.