Cresent Bahuman Limited

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University of the Sargodha
INTERNSHIP REPORT
ON
“CBL”
(Crescent Bahuman Limited)
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INTERNSHIP REPORT
ON
(Crescent Bahuman Limited)
Submitted To:
Prof. Ghulam Ali Bhatti
Approved By:
Mr. Zahid Ali
Submitted By:
Muhammad Shahzad Aslam(28ss)
M-Com

Sargodha
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Preface
Being aware of the importance of practical training, the Institute
of Administrative Sciences, University Of The Sargodha, requires
every Master student to go through training for practical purpose
as trainee.
The internship program is to broaden the vision of practical
experiences with theoretical knowledge as it increases one’s
capabilities to handle problems at various stages and the ability
of decision.
I tried my best to collect the valuable information and its relevant
facts.
This report is the result of my internship with Crescent Bahuman
Limited.
The Crescent Bahuman is deeply committed to organizational

objectives that are directly related to its institutional mission of
providing high quality healthcare to veterans. These objectives
are met in part through a variety of employee, intern, and
residency training programs in several departments in the
organization.
The primary goal of this Internship Training Program is to prepare

interns for competent entry into the increasingly complex roles of
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organization or. My expectation about the Crescent Bahuman is

that the employer will become part of the organization and they
are much sincere with that organization. Interns are expected to
learn and demonstrate entry-level proficiency in: 1) psychological
assessment, 2) Awarness of the environment of the organization,
3) consultation/ supervision/teaching, 4) professional and ethical
behavior, 5) diversity issues, and 6) scholarly inquiry and critical,
empirically-based evaluation of internee and other managerial
activity. Interns completing the program should be fully prepared
for further permanent training or entry-level professional positions
involving organizational treatment, teaching, or research,
Our decision to apply at an internship site is an important one --

the internship experience often defines the path that a
professional psychologist’s career will take. Please take the time
to read the enclosed information carefully.
An internship is an opportunity that allows a qualified student to

gain professional, supervised experience related to his or her
field of interest. Internships are usually completed during the
summer and/or semester breaks; however, a local internship
could be completed during the semester if the student's schedule
allows a sufficient amount of time. All students are eligible to
intern, although academic credit depends on the requirements
set forth by the employing organization and the student's
academic departments. Compen
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ACKNOWLEGEMENT
First of all I am very thankful to Almighty ALLAH who gave me

courage and confidence to making this internship project on
CRESCENT BAHUMAN Ltd. I am also thankful to my respect
senior Mr. RAMZAN who is my best and sincere friend and
Senior Accountant in the Crescent Bahuman limited, and who
gave me chance and opportunity to make such a professional
project, in which I analyze the entire scenario regarding industry
and management perspective. He has been a steady source of
track throughout the course of this whole internship. His
innumerable ideas were precious and gave me with an insight to
the path, which was off the beaten track otherwise. I have yet to
see the limits of his sympathetic, stamina and altruistic concerns
for me. I am especially thankful to our parents, families and
friends for giving me the silent support in terms of courage and
strength that I needed to accomplish my goals. Words might not
be adequate to express my feelings towards them.
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DEDICATION
I would like to dedicate this report to my dear parents and
respected teachers who guided me through my studying carrier
and my still doing their best for me. To be here in this institution
at this level I am just because of my parents, especially their
training, guidance, love, affection and motivation. I pray that I can
serve my parents as best as I can.
“Parent’s Blessings are Our Most Valuable Assets”

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sation is not required, and varies by position and industry.
“To be the best supplier of the products and services to our

global communication customers at the lowest total
cost of ownership”
Vision statement
To promote the products and services in international
markets. To be a customer focused organization with
product quality and Service excellence
.
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Executive summary
Crescent Bahuman, the largest vertically integrated denim
manufacturing facility in Southeast Asia
Crescent Bahuman prepares jeans and denims related items for

the manufacturers. We will expand production capacity of jeans
and denims & threads. We prepare the top five percent, in terms
of quality standards, of all jeans on the market. Our customers
seek this product as it provides them with a point of
differentiation to specialty roasters. In the past six years, demand
for our products has exceeded the amount we are able to supply
and we have been forced to refuse requests for larger shipments.
We predict growth of thirty percent in the first year with sales

exceeding $26,208,000. In this year three the plant will run at
maximum capacity and based on the current price of products we
expect profits of $ 2.5billions. We have positive indicators from
current importers that the additional amount of beans will be sold.
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 Crescent Group Chronology

 Company’s Objectives
 Vision Statement
 Mission Statment
 Financial Department
 Employees in dept.
 Functions
a) Primary Functions
b) Secondary Functions
 Oracle Financial Software
 Business Volume
 SWOT Analysis
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 Conclusion
 Limitations
 Bibliography
 Recommendation
 Glossary
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Organizational Profile
Crescent Bahuman, the largest vertically integrated denim

manufacturing facility in Southeast Asia
Crescent Bahuman Ltd. originally setup as a joint venture
between The Crescent Textile Mills, Pakistan and Greenwood
Mills Inc., USA is now fully owned by the Crescent Group. The
plant is located in Pindi Bhattian, Pakistan roughly 5 hours from
Lahore and 8 hours Islamabad along a motorway connecting
both cities.
Designed as a vertical jeans wear facility, it commenced
commercial production in June 1995. The plant is situat4d on 550
acres with 165 committed to commercial activates and
manufacturing facilities of 1 million square feet. The facility is one
of the first single site operations to include processing of raw
cotton through finished jean wear. It also has a wastewater
treatment plant and a power generation plant within the
compound.
Crescent Bahuman Ltd. has established a corporate philosophy
for the betterment of the nearly 5000 employees and community
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while ensuring an environmentally friendly manufacturing

process.
The facility is equipped with the latest technology in equipment
from spinning through garment finishing with a capacity of 11.5
million meters of fabric, which when converted produces 8 million
jeans annually.
In September 1998, Apparel Marketing & Operations Ltd. Was
established to manage CBL. Along with its day to day
management of operations and development of new strategies
for marketing and sales, AMOL opened an office in Derry,
Northern Ireland for the Marketing and Sales functions while
creating an expatriate team in Pakistan to manage the
operations and continue training of local management.
The focus is to create seamless interface throughout the
manufacturing process addressing delivery, cost and quality
issues providing the right product the first time, at the right
time. The speed of developing and getting the right product
to the customer is at or above par with manufacturers all over
the world.
Lead-time from order to delivery to market has been a
continuing focus of Crescent Bahuman Ltd. With extensive
investment into systems right from order-taking and

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procurement through to production and delivery CBL has
managed to squeeze its lead time to the satisfaction of its
global customer base.
Crescent Group’s 60 Years Chronology

Introduction:
The Crescent Group (CG) has been in business since the
beginning of twentieth century. They are known for their strong
business ethics and their highly professional management, for
which they command respect from the local and international
business community. With its widespread presence, strong
background and management strength, Crescent Group is well
positioned to continue expanding rapidly by taking advantage of
the liberal and improving economic environment in Pakistan.
They have survived and recovered from turbulent political
situations and economic crisis spread from the partition of the
sub continent and Pakistan’s history.
The diversity of The Group is reflected through its independent

operating companies operating in diversified business sectors all
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over Pakistan. Among them are some of the companies that are
premiers and market leaders in textiles, jute, sugar, engineering,
investment, banking, insurance, leasing sectors etc.
The Crescent Group employs over 17,000 people and has

revenues exceeding Rs 20 billion from its few of its prominent
companies. This constitutes over 0.55% of the country’s GDP
and over 1% of the market capitalization of Pakistan. The
consistent growth of the Group has resulted in numerous joint
venture partnerships with international companies desiring to
invest within the economy.
Crescent Group has the slogan of “The people who care for
people" and the Crescent Family has a general reputation of
never transferring their money abroad. Crescent family
particularly has the reputation of being truly rooted and
entrenched in the Pakistani Soil and is considered to be a
conscientious tax payer.
An article in Weekly Friday Times in the first week of April 1993

described Crescent as "one of the oldest, largest and most
distinguished business concerns in Pakistan, an exemplary tax
payers and investors of every penny earned back into their
business of the home country". Presided over by eldest member
of the family, Mr. Mazhar Karim, the Group has over twenty
working members and can be truly called a joint venture of
uncles, cousins and nephews. This Chiniot sheikh family has
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lived up with quite a wonderful reputation, bearing an excellent

record with its creditors throughout its business. Men running
Crescent do not have to make contacts, for the privilege comes
to them naturally.
Mission statement
Crescent Bahuman is a large-sized textile company focusing on jeans
manufacturing and an intriguing atmosphere, in a prime neighborhood
of Pakistan.
Evolution of the Group
Pre Partition Era:
The history of the group dates back to 1910 when Mr. Shams Din
of Chiniot and his four sons Mr. Amin, Mr. Bashir, Mr. Fazal Karim
and Mr. Muhammad Shafi came into business with a tannery at
Amritsar. By the time Pakistan was born, they had offices at
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Madras, Jalandhar, Calcutta, and Delhi, and were running the

largest leather business in India.
Post Partition Era – 1950s
The period of 1950s for Crescent Group was dominated by its

focus upon the textile sector. After migrating to Pakistan, the
Crescent family struggled to regain its strength and growth pace,
which it had left back in India. Crescent family was allotted an
industrial unit sprawling over 125 acres in Faisalabad, in lieu of
the property left over in India, which was to become the spring
board of their growth and diversification. After the creation of
Pakistan, three of the above mentioned four brothers returned to
the native land and in 1951, incorporated a trading company
Muhammad Amin Muhammad Bashir Limited for export of cotton
and imports. Mr. Bashir settled in Karachi, Mr. Amin managed the
operations from Lahore while Mr. Muhammad Shafi worked at
the ginning factory in Sargodha.
After migrating to Pakistan, the family took advantage of the

incentives offered by the government for setting up industries
and established Crescent Textile Mills Limited. The 1950s also
saw the establishment of the Crescent Sugar Mills which was
later expanded through the addition of a distillery plant. In the
beginning Crescent Sugar was operating as a unit of Crescent
Textile Mills Limited. However, after commencement of the
operations of distillery, unit it become a separate entity and got
listed on the stock exchange.
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The Decade of 1960 – Diversification of

Group’s Business
By mid 1960s Mr. Fazal Karim also returned to Pakistan and the
four brothers fondly known in the business community, as the
“The Gang of Four" soon became Pakistan's biggest textile
exporters. They were also joined in the business by their two
cousins. In 1964, Crescent Jute Products Limited was set up and
the Group took full advantage of unlimited resources of the
country’s jute production in the eastern region.
During the late 1960s the group expanded by setting up Crescent

Boards Limited and Shams Textile Mills Limited. Crescent Board
was the first of its kind designed by a German company to utilize
biogases from its sugar mills for the manufacturing of board.
Rapid expansion during the 1950s and the 1960s made Crescent
Group one of the top groups and among 22 families notarized
families of Pakistan, which dominated Pakistani economy in the
sixties. The Group continued to expand its strength in the textile
sector and incorporated Shams Textile Mills Limited, which was
primarily engaged in manufacturing and trading of high quality
yarn. The late 60’s (1967) saw the emergence of Shakarganj
Mills Limited as the Group continued to gain its hold in the sugar
sector of the country.
The end of the decade, Crescent Group had emerged as one of

the most prestigious and strongest business conglomerate of the
country
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1980s and 90s – Shift of Group’s Focus towards Financial and

Engineering Sectors
The sponsorship and management of the Group realized the

potential of Pakistan’s growing financial sector and decided to
make inroads into it in late 80s. The Group established Pakistan
Industrial Leasing Corporation Limited in 1987 and successfully
undertook leasing business in the country. This was followed by
the establishment of Crescent Investment Bank Limited, which
was among the premier investment banking institution in the
country. The Bank dominated the Pakistani investment banking
scenario for almost a decade until it acquired Pakistan’s
operation of a multinational financial institution, Mashreq Bank
psc, to form Crescent Commercial Bank Limited in 2003. The
merger gave Crescent group a completely new image in the
financial sector as it became the owner of a full scale commercial
bank in the country.
The Group further diversified its focus towards other sectors of

the economy and incorporated Crescent Steel and Allied
Products Limited in 1983. It is one of the downstream industries
of Pakistan Steel Mills, manufacturing large diameter spiral arc
welded steel pipelines. The company has become one of the
most well written success stories of the Crescent Group and
stands as the leading private sector steel engineering company
in Pakistan.
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Further inroads into the financial sector were made by the group
in early 90s when it established 3 new Modaraba companies.
First Crescent Modaraba, among them, become one of the
largest modaraba companies in Pakistan in years ahead. First
Crescent Modaraba in the years to follow turned out to be the
parent company of the existing Crescent Standard Investment
Bank Limited, which is now the largest investment bank in
Pakistan.
The Group also tapped into the country’s housing finance sector
and incorporated International Housing Finance Limited in 1990.
Besides establishing the new companies in the financial sector,
the Group also started a series of takeovers and acquisitions and
acquired Crescent Leasing Corporation Limited as part of its
expansion strategy in the sector.
Crescent Leasing Corporation Limited now stands among the

most reputed and well renowned leasing companies in the
leasing industry. The group entered the brokerage services in
1995 and took over Shoaib Capital (Pvt.) Limited to rename it as
Crescent Capital Management (Pvt.) Limited.
Current Decade – Finalization of the Group’s

Strategy towards
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Financial Sector
In early 2000’s, the Group paced up its acquisitions and bought 3

leasing companies in 2002 namely Paramount Leasing Limited,
First Leasing Corporation Limited and Pacific Leasing Company
Limited.
Leasing Company Limited.
During the same period a Modaraba company was also acquired

and latter renamed after equity injection as Crescent Standard
Modaraba. The Group carried on its acquisition spree by further
acquiring a brokerage firm Crescent Standard Brokerage in
2002.
The Group also undertook rapid maneuvers in the banking sector

to reduce the number of companies and formulate a stronger
financial institution rather then operating several different banking
companies at the same time. Al Towfeek Investment Bank was
acquired by the Group and it was merged with First Crescent
Modaraba to be re-named as First Standard Investment Bank
Limited in 2002, which was renamed to Crescent Standard
Investment Bank Limited.
In another Group merger Crescent Investment Bank Limited

acquired Pakistani operations of Mashreq Bank and both these
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financial institutions got merged to form Crescent Commercial

Bank Limited in 2002.
In yet another merger in 2003 Pakistan Industrial Leasing

Corporation Limited, Trust Investment Bank Limited, Fidelity
Investment Bank Limited and Doha Bank’s Pakistani operations
all merged to form Trust Commercial Bank Limited. In a bid to
further streamline the banking operations of the Group Trust
Commercial Bank Limited was merged into Crescent Commercial
Bank Limited in October 2004.
First part of the group’s financial sector penetration strategy was

to acquire and establish companies with diversified operational
bases and the second phase which was the consolidation phase
saw some of the most pioneering and complex mergers in the
history of Pakistan in respect of the number of companies
involved. Crescent Standard Investment Bank Limited, which
now stands as the largest investment bank in Pakistan, is also
the result of multiple mergers and acquisitions involving 7 of the
above mentioned companies that were bought in the nineties and
early 2000s.The latest acquisition undertaken by the Group is in
the energy sector. Altern Energy Limited was taken over by the
Group in early 2005.Crescent Group now runs its fastest growing
financial sub-conglomerate by the name of Crescent Standard
Group, which is lead by Mr. Altaf Saleem, Mr. Ahsan Saleem and
Mr. Anjum Saleem, who represent the third generation of the
Crescent family.
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Following table depicts the chronology of developments

(incorporations and acquisitions only) that were followed by the
Group in entering new business
venues over its history.
Company Date of Incorporation /

Acquisition by
Crescent Group
Crescent Textile Mills 1950

Limited
Muhammad Amin 1951

Muhammad Bashir
Limited
Premier Insurance 1952
Crescent Sugar Mills 1959

Limited
Crescent Jute 1964

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Shakarganj Mills 1967

Limited
Shams Textile Mills 1968

Limited
Crescent Board Mills 1977

Limited
Crescent Steel & 1983

Allied Products
Limited
Suraj Cotton Mills 1984

Limited
Pakistan Industrial 1987

Leasing Corporation
Limited
International Housing 1990

Finance Limited
First Crescent 1990

Modaraba
Crescent Standard 1990

Business
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Management
Crescent Investment 1989

Bank Limited
Crescent Software 1992

Products Limited
Crescent Bahuman 1993

Limited
Crescent Leasing Taken Over in 1993

Corporation Limited
Crescent Capital Taken Over in 1995

Management (Pvt.)
Limited
Crescent Commercial 2002

Bank Limited
Crescent Standard 2002

Brokerage
Al-Towfeek Taken Over in 2002

Investment Bank
Crescent Standard Taken Over in 2003

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Modaraba
Fidelity Investment Taken over in 2003

Bank Limited
Safeway Mutual Fund Taken Over in 2003
Asian Stocks Fund Taken Over in 2004
Altern Energy Taken Over in 2005

Limited
Employee’s Detail
Males 5553
Females 968
Management 387
Residing on the plant 2197
Travelling daily 3796
TOTAL 6521
Customers
Levi’s (World Wide) Mustang
Stonage GAP
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Blend Big Star
Ben Shermen Carrera
Nautica Jeans Co. Mc Gordon
Espirit Identity
Denim Arezona
Colorado Limited Express
Products and Services

 Jeans
 Shirt
 Upper of jeans
 T- Shirts on demand
 Levis
 Express
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keys to success of CBL:
1. Establishing and maintaining working relationships and
2. contractual agreements with manufacturer.
3. Bringing the new facility to maximum production within
4. three years of operation.
5. Increasing our profit margin to seventeen and one-half
6. percent (17.5%) with the use of improved technology in the

new facility.
7. Effectively communicating to current and potential
8. customers, through targeted efforts, our position as a

differentiated provider of the highest quality Arabica beans in the
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9. world I am going to make a report on Crescent Bahuman

limited to know role of Crescent Bahuman in textile sectors for
development of Industrial sectors. Crescent Bahuman today,
represents the most efficient and successful organization that
has grown with time, experienced in Pakistan. A major jeans
manufacturer in the context of Pakistan, has a wide scope and
size, it symbolizes a fully growing tree evergreen, strong, and
firmly rooted.
My first purpose in Crescent Bahuman limited its operation how it

works, and how it deals in imports and exports material it is an
integral part of modern economic system. The principle of trade
is first concentration of wealth and profit maximization, and then
concentration of resources its first purpose is to fulfill the
economic need of nation and its members.
During last 20 years, Crescent Bahuman has concentrated on
growth through improving product and service quality by using
the technology and people utilizing its extensive techniques to
increase work developing at large scales and stable the image of
the company in the eyes of the international community and
managing its non performing loss via improved risk management
process.
Crescent Bahuman today, represents the largest company
in the whole Asia that has grown with time, experience in
Pakistan. That organization is now trading the jeans in whole of
the world and gaining the name in the international community,
on the behave of its manufacturers.
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Crescent Bahuman has a interesting and great impressive

environment in jeans and denims production. The level of the job
satisfaction increase in working CBL and productivity is also
increased.
Goals and objectives:

Our Goal is to serve the needs of the customer.
To accomplish this, we will represent buyers and sellers with their

transactions with the highest degree of professionalism.
Specializing in large manufacturing jeans transactions, Crescent

Bahuman Management has over twenty five years experience
listing and selling jeans and other items in whole of the world.
Compiling detailed information, knowledge of the industry and

the ability to get along with people is the foundation of our
business.
The main objective of the Crescent Bahuman is to fulfill the need

of the jeans of high standard for its customers and dealers
Its goal is to maximize the profitability and cost minimization of

the product related the jeans manufacturing.
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In Asia Crescent Bahuman is the largest factory in the

manufacturing of the jeans wears and denims and manufacturing
of thread. Its goal is to compete all around the world for improve
its standard.
The goal of the Industrial Technology Cooperative Education
Program is to allow the employee to participate in a broad
spectrum of manufacturing, with the assistance of an industrial

enterprise. To achieve this goal, programs devoted to practical
industrial situations and disciplines are exposed to the
technologist from both an industrial and an academic view. A
further academic requirement for the employee are to have a
general education background in humanities, and in social and
behavioral sciences.
Financial objective:
Gross Sales
How much will you sell this year, next year, in 5 years?
Cost of Goods
What will you pay for the goods you sell & can it be reduced?
Net Income
How much will increasing Sales and reducing costs change your
net?
Return on Investment
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How can your increase the productivity of your investment?
Marketing objectives:
Sales Dollars –
Quantify projected sales in dollars.
Sales Units –
Quantify projected sales in units.
Market Share –
What % of the total market will you sell?
Distribution Channels –
What channels will you use? Retail, Wholesale, Contract?
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Strategy and strategic planning
Manufacturing strategy and strategic planning are critical to an

industry's success. Although research in this area has increased
in the last decade, the focus of much of that work has been on
the content rather than the process of the manufacturing
strategy.
If you look at most manufacturing industries today you will see

that the planning process is found to be a bottom-up approach
from a corporate or business perspective, which differs from the
top-down planning process that has proven to be so successful
in other industries.
A good manufacturing strategic plan combines some "rational"

elements (formality, comprehensiveness, control focus, longer
horizon) with others that lend adaptability (wider participation and
more intense interaction). If you can have this type of strategic
planning, your manufacturing business is sure to be a much
greater success. There will be less waste and higher profits.
Why it is important to have a manufacturing strategic plan for the

Crescent bahumabn:
1. Even the smallest amount of waste per item or time adds up

incredibly fast when you take into account the sheer numbers
and volume of what is being manufactured. For example,
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whether it is the manufacturing of one thousand jeans a day or

denims, waste means money. The numbers do not have to be
this large for the principle to stay the same. Any wasted time or
material is wasted money. A strategic plan can help to eliminate
waste, streamline efficiency, and thus mean larger bottom lines.
2. While waste is a big issue, quality is even bigger. If you have a

strategic plan it is like setting up a check and balances system.
Nothing moves forward until it is complete, which means, the job
is done. You do not have waste, but you also do not have
dissatisfied customers because things are done poorly or
incorrect.
3. A plan gives people a goal and something to work toward.

Working just to work is not common. However, working toward
something, and having an end game is motivation. While for
many their motivation is a weekly, biweekly, etc. paycheck,
showing that person how they fit in your overall plan, and how if
they don't fit, they don't get paid becomes motivation inspired by
a strategic plan.
There are tons of reasons why having a manufacturing strategic
plan is critical to your business. Bottom line, without one you
waste time, energy, and money; three things no one wants to
waste.
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ORGANIZATIONAL STRUCTURE:
CBL comprises of nine divisions, 14 Departments and 47
Sections. These departments are
Departments of CBL:
1) Human Resources
2) Finance
3) Information technology
4) Engineering (Mechanical, Electrical, and Power house)
5) Marketing
6) Supply chain
7) Industrial Engineering
8) Product Development
9) Spinning
10) Weaving
11) Cutting
12) Sewing
13) GWP
14) Quality Assurance
Departments and Their

Abbreviations:
 GQ Garment Quality
 HR Human Resource
 BFL Bahuman Forestry Limited
 IT Information Technology
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 PG Power Generation
 SY Security
 IE Industrial Engineering
 SW Sewing
 SV Services
 SCH School
 WP Garment wet Processing
 HO Head Office
 IR Industrial Relation
 CV Civil
 CT Cutting
 WV Weaving
 QA Quality Assurance
Management hierarchy
CHIEF EXECUTIVE OFFICER (E1)
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PRESIDENT OF FINANCE
(E2)
VICE PORESIDENT OF FINANCE (E3)
ASSISTANT VICE PRESIDENT (E4)
MANAGER OF FINANCE (M1)
SENIOR DEPUTY MANAGER (M2)
JUNIOR DEPUTY MANAGER (M3)
SENIOR ASSISTANT MANAGER (M4)

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JUNIOR ASSISTANT MANAGER (M4)
S1
S2
S3
S4
S5
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OFFICE BOYS
Human Resource and Strategy
A. HR department plays a linkage role between the

processes, strategies, and people. The main function of this
department is to facilitate the stakeholders.
B. Recruitment and selection process fulfill the future
requirements of talented sourcing and their appointments or
entry in the organization. Once a new employee or associate
selected his naturalization process begins.
C. Training and development function is directed towards
individuals, who have potential to grow and commit for long term
association with CBL.
Three main areas:

 Human Resource
 Industrial Relation
 Co- workers services
Objectives:
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To ensure alignment of people, processes, strategies and

facilitate the organization in concern of to achieve the CBL goals.
Make people in term of to achieve the personal and professional
objectives fulfilled.
Services:
 Establishment and implement of all HR related policies and
procedures
 Determine the training needs of managers and ensure their
development through external internal trainings programs
 Bring positive change in attitude and personality
 Develop the sense of ownership at all levels
 Ensure the employees and organization development
 Implement the orientation training at all level
 Ensure the fair and equitable pay structure
 Ensure the international quality standard
Dyeing Deptt:
40
Sewing Deptt:
41
42
43
WEAVING DEPTT:
44
Quality Assurance Deptt:
Production and quality assurance are synonymous while assuming

the case of crescent Bahuman. The concept of quality circles was
much before introduced at CBL while other organizations in the
industry just thinking on it. Modern quality control and assurance
systems and techniques i.e. ISO 9001, ISO 14001, WRAP, Organic
Cotton Certification-OE & GOTS etc have been implemented at CBL.
The company places highest emphasis on manufacturing of its denim
products with consistent quality by incorporating efficient and flexible
process to ensure customer satisfaction. Total quality management is
achieved through effective control and continuous improvement of
every process. Quality assurance department of CBL cab be divided
into two areas as given below:
 Fabric Quality
 Garment Quality
Crescent Bahuman produces high quality denim products. CBL

produces both finished garments as well as fabric, therefore,
monitoring of product quality standards is given high priority so that
customers are not only satisfied, but also repeat business opportunity
is created. Fabric quality is looked after at different stages. Spinning,
weaving, ball warping, dyeing and finishing etc. While garment quality
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is closely monitored by the DM level resources during the process of

garment Wet Processing and Sewing.
Quality Statement of CBL:
Crescent Bahuman Ltd places highest emphasis on manufacturing of
its denim products quality with consistent quality by incorporating efficient
and flexible processes to ensure customer satisfaction. Total Quality
management is achieved through effective control and continuous
improvement of every process. Our Quality management system include
Effective management Leadership Involve every person in implementing
continuous improvement with sense of ownership providing conducive
work environment Provision of resources and their optimum utilization .

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Values of CBL
Leadership :
 Walk the talk

 Empowerment
 Problem resolution
Accountability:
 Ownership of responsibility
 Acceptance of mistake
 Use of authority
Team Work:
 Sharing and participation

 Team Spirit
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 Facilitate Alignment
Growth:
 Result orientation
 Innovativeness
 Willingness to learn
Main Designations at CBL:
Executive E1 to E5 (EVP, SVP, AVP)
Managerial M1 to M6 (SM, SDM, DM, SAM, AM)
Staff S1 to S2(officers, Junior officers, &

grades supervisors)
Work man S3 to S5 (operators, Senior operators, and

assist operators)
48
FINANCE DEPARTMENT
Finance is an art of managing money. And for this purpose, CBL

has formulated a finance department to look after the existing
funds and to generate new methods for generating funds. The
Finance department in CBL comprises of well educated,
professional and intelligent personnel who by using their skills
trying to benefit company.
Everyday finance department is busy in such activities that what
new methods to be explored so that cost is reduced and profits
and revenues be increased. As CBL deals in number of activities,
such as purchases both local and import, sales both at national
and international level; then funds are obtained from Banks and
much more. So, Finance department performs the activities of
recording, summarizing and than at the end making decisions in
order to provide cost beneficial solutions.
49
The scope of work covers payroll processing, Imports recording

and updating accounts payable, recording collections and
updating accounts receivable; then the major portion is of costing
and budgeting of every item that is produced in CBL; then the
maintenance, recording and valuation of fixed assets,
negotiations with banks to obtain funds and fair calculation of
interest to be paid annually or quarterly, and in performing all this
complying with all the laws, accounting principles and
regulations. Also, all inventories are in control of finance
department. All records regarding material in and out of company
premises are accounted by finance personnel.
FINANCE DEPARTMENT IN CRESCENT

BAHUMAN LTD
Following are the main sections of finance department in
CBL.
Payroll
Accounts Payable a) Local
b) Import
General Ledger
50
Costing
PAYROLL:
The payroll division handles payments to all full-time and part-

time employees on a bi-weekly basis. In addition all checks for
the self-insured medical plan, reports for worker’s compensation,
and all other payroll related items are handled by this division.
ACCOUNTS PAYABLE:
Import payable and Local
payables when comprised are called account payables in CBL.
IMPORT:
51
This division deal with only to foreign parties such as Levis.

Ben Sherman Paxar international etc.
LOCAL:
This division deal only in local parties such as
Sapphire textile, pay hotel expenses mess expenses etc.
GENERAL LEDGER:
General Ledger is a mother book of Accounts;
it is used to show the chain of suppliers as a whole account in
CBL.
COSTING:
The estimated cost and actual cost of the CBL
products (yarn, fabric, and garment) and their variance analysis
is called costing.
Hierarchy of Finance Department

52
53
54
55
56
Before describing my work I want to tell that in finance

department of CBL a software is used that is “ORACLE
FINANCIAL
ORACLE FINANCIAL
Oracle Financial is a complete application for financial reporting,

analysis, budgeting, and planning. Integrating a central source of
management data with powerful analytical tools, Financial allows
businesses to make, manage, and measure decisions across the
enterprise. The system provides businesses with everything they
need to control costs, analyze performance, evaluate
opportunities, and formulate future direction. Oracle Financial is
part of the Oracle E-Business Suite, an integrated set of
application, which is designed to transform your business to an
e-business.
DECISION MAKING:
57
Oracle Financial integrates with oracle general ledger. This

integration eliminates the need for duplicate data entry and
structural maintenance, and thereby provides a more cost-
effective financial management.
In “2002” Crescent Bahuman Limited started Oracle Financial

system for its Finance Department up to “2003”, it was on trail.
After that it was accepted and in “2004” audit of Crescent
Bahuman Limited was taken place on this system.
PRIMARY WORK:
I have divided my work in following parts:

 Payroll
 Reconciliation Statement
 Preparation of cost sheet
 Transaction in Oracle
58
Payroll
In a company payroll is the sum of all financial records of
Salaries, Wages, Bonuses and Deductions
Salary Slip
Earnings
Salary (Basic Salary):
The first item in the employee’s payroll statement (salary slip) in

his / her basic salary. The basic salary is based on his / her grade
and decided by the H.O.D.
The employee grades are divided into 3 categories
Category 01: S6, S5, S4, S3, S2, S1
Category 02: M6, M5 M4, M3, M2, M1
Category 03: E5, E4, E3, E2, E1
Overtime:
The duration of maximum overtime is 12 hours other than the
routine working hours in a week. The overtime is done by
employees in condition when orders are in large quantity within
the less period of time and when in a department some
59
employees are on leave and their left work is divided into

employees in shape of overtime.
Special Allowance:
Special allowance is the allowance which is added in the salary
for those who are having grades from S1 and above
Piece Rate:
Piece rate is the incentive given to the
workers of Sewing and GWP department on the basis of each
piece being processed. The calculation of piece rate is done by
the Industrial Engineering department (IE)
Piece rate is apply only on S3, S4, S5 grades.
Perks:
Perks are the pre-defined amounts to compensate the day care

medical charges of the employee that are based on the grades of
the employees. This item of payroll statement does not show in
the salary slip of the employee.
 S5 and S4 grade employees are not facilitated with perks
amount.
60
 The Executives grades (E5-E1) personnel’s perks are
decided by Head Office.
House Rent Allowance:

House rent is the 40% of the amount of employee’s Basic
Salary + COLA.
Utilities:
Utilities are the allowance which is paid to the employees to
compensate the electricity, gas and telephone expenses. Utilities
are the 10%of the amount of the employee’s Basic salary +
COLA.
COLA (Cost of living allowance):

COLA is the allowance that is directed by the Govt. to CBL to pay
to the employee with his / her salary. COLA is fixed amount for
every employee of any grade i.e. Rs. 100 Only.
Deductions:
Utility Expenses
61
Utility expenses are the electricity, Telephone and gas expenses

that are consumed by the employee and are showed as each
item separately in the employee’s salary slip.
Mess Charges
Mess charges are included in the deduction section of salary slip
of those employees that are availing the accommodation of the
CBL. CBL accommodation is divided into four hostels according
to the grades of the employees. These four hostels are Workers,
Senior Grades Hostel (SGH), Junior officer hostel (JOH), Senior
officer hostel (SOH). SGH, JOH, SOH mess is maintained by
these hostels itself and resident of that hostels are being charged
the mess expense as per their attendance. The residents of
workers hostels have to maintain their own mess system or they
can avail the facility of Canteen Cook House at charges
Income Tax:
An employee who is being paid Rs. 200,000 or above comes
under deduction income tax which is applied on the employee’s
salary at different ratios according to the amount of the employee
School Fee of the children of employee:

62
CBL is providing the facility of state-of-the –art education to the

employee’s children. The fees are charged to the employee’s
according to their grades and are shown in deduction section of
the employee’s salary slip.
Excess Salary and Excess Perks:

If by mistake in the entries the employee salary or perks are
entered in excess of amount to the actual amount, then in the
next month salary slip of the employee, the excess salary or
excess perks are shown in the deduction section of salary slip.
Provident Fund Contribution:
Provident fund is the lump sum amount that is paid to the

employee at the time of his /her termination/retirement of the
employee. Anyhow an employee can avail the facility of the
provident at any time during his /her job but he / she can only
withdraw a specific amount generally half of the total amount of
provident fund at that time is accumulated. 8.33% of basic salary
63
+ COLA will be deducted from employee salary and the same

amount is contributed by the CBL.
Employee Old Age Benefit Institution (EOBI):
EOBI is 1% of the salary amount that is deducted from the salary

amount and added in EOBI for the purpose of employee’s
pension after his / her retirement. EOBI is run by the GOVT. and
that deduction is carried forward to the EOBI account.
Sports Fund:
Sports fund is fixed deduction in the salary slip for the employee
of S1 and above which is Rs.15
Club Fund:
Club fund is also a fixed deduction for the employee having

grades from S1 to above i.e. Rs 50
Welfare Fund:
Welfare fund is the deduction of Rs. 100 that is deducted only

from the salary of AM and above grades managers.
64
Milk Deduction:
CBL is also having a dairy farm where the residence of CBL can
access the fresh milk everyday and total amount of the whole
month milk expense will be deducted from the salary at the end
of the month.
Store Deductions:
When an employee joins the CBL, he /she is provided some
equipment according to his / her job requirement from the main
store, when he / she left the organization he /she has to return
that specific equipment, in case of missing anything a deduction
is being taken in his/ her Final Settlement.
Wheat Recovery:
CBL is also having a farm where the residence of CBL can
access the Wheat / Rice at every season and the total expense
is deducted from the salary at the end of the month.
Advances:
An employee of CBL can avail the facility of taking advances
(Loans) in form of cash if he / she needs for some emergency
usages. The advances are based on employee’s Salary and
Provident Fund.
65
Provident Fund facility the employee can avail 40% of PF as a

loan and it is deducted from his /her salary in “12” equal
installments with one extra installment equal to the amount of
one installment.
FINAL SETTLEMENT ACCOUNT

Final Settlement is a legal document which is prepared for the
employee who has left the organization with some certain
reasons i.e. in case of:
 Probation period
 Dismissal
 Resignation
 Retirement
 Death of Employee
On the basis of above five reasons of the separation of the

employee, the HR department prepares a clearance certificate
and an Office Letter of that specific employee. In Clearance
certificate the information consist of employee’s bio data Like
Employee Name, Code, Code Grade, Department, Joining and
termination date, Earned Leaves, No. of days worked in the
66
leaving month etc. The Clearance certificate rotates from

different departments for the purpose of clearance just in case for
if any amount or item is recoverable from that specific
department. The main concern departments of Clearance
Certificate are:
 Store
 School
 Mess
 Security Office
 IT
 HR
 Finance
After the clearance from these departments, HR hand over that

clearance certificate to the Finance department along with an
copy of an Office letter and some other documents according to
the employee ‘s separation reason i.e. Resignation Application,
Retirement Application etc. The office letter is the letter of
termination which is, firstly send to the specific employee for the
purpose of Final Settlement.
Now on the basis of Clearance Form and Officer Letter, the
payroll section of the Finance Department prepares the Final
Settlement Document Slip which illustrate the Net amount
67
payable to or Receivable form of that specific terminated

employee. That process is executed through Calculating the Total
Payables and Total Deductions on the basis of Clearance
Certificate and some different account Reconciliation MS Excel
worksheet. The detail of the total payables and total deductions
are as follows:
Total Payables I.e. Payable before

Deductions:
 Salary Days
 Leave Encashment
 Overtime
 Piece Rate/ Production Incentives
 Notice Pay
 Others
Total Deductions: (Deduction as per

Clearance Certificate)
 Advances
 Mess Bill
 Electricity Bill
 Telephone Bill
 Notice Pay
 Others
When Full and Final Settlement Accounts Document slip of each

employee is being completed, then that manual transactions to
68
an IT based application software( Oracle Financial) for the

purpose of final settlement Invoices and Vouchers of each
employees.
Invoices and invoices based vouchers are further divided into
their sub-categories on the basis of Final Settlement account
slips which indicates whether the employee lies in the category of
payable to or Receivable form
.
Types of Invoices and Vouchers for

Payable To Category:
 Standard Invoices
 Journal Voucher
 Payment Voucher
Types of Invoices and Vouchers for

Receivable From category:
 Debit Memo
 Standard Invoice
 Journal Voucher
The Execution of Journal and Payment

Vouchers for Payment Purpose
69
With the help of different commands in the Oracle Financial, the

standard invoices are converted into Journal and Payment
vouchers and finally their printed form is attached with the Final
Settlement Slip and Clearance Certificate of each terminated
employee and carries forward to the authorities for its approval
so that the terminated employee’s payment can be made.
In case of Receivable From Employee’s, only the Journal
Vouchers is being prepared and receivables are adjusted in the
Provident Fund Final Settlement of the employee.
RECONCILIATION STATEMENT
The purpose of this exercise is to reconcile own company’s
statement with the records of other company. A valuable thing
about a checking account is that it provides a double record for
the depositor--one maintained by the company (depositor) and
the other by the bank.
The bank’s record, called a bank statement, is sent periodically
(usually monthly) to the company. Whenever a bank statement is
received, for control purposes an appropriate person within the
company should reconcile the bank statement with the
company’s own records.
This reconciliation accounts for differences between the two
records. These differences are usually one of two types: one is
70
comprised of “lag” by the bank or the company. Of course, once

identified, errors can be corrected
Furthermore, the company is assured of the amount of cash
available to it at the bank. For the best control, many companies
reconcile both balances and transactions.
This assures that the bank account is not being used for
unauthorized purposes—for example, an unauthorized deposit
and withdrawal for the same amount.
STANDARD WAY OF RECONCILIATION:

Bank statement closing balance for period
A
Plus unreconciled AR B
Less unpresented Cheques
C
Plus unreconciled CE lines
D
Plus/minus manual corrections
E
Equals Bank balance
F
71
Gen. Ledger account bal for period

G
Result
F=G
In the above formula, we would work out the manual corrections
ourselves, but we expect to get the other totals from the cash
management report.
COST SHEET
A competitive product must address factors such as cost,

performance, aesthetics, schedule or time-to-market, and quality.
The importance of these factors will vary from product to product
and market to market. And, overtime, customers or users of a
product will demand more and more, e.g., more performance at
less cost. Cost will become a more important factor in the
acquisition of a product in two situations
 First, as the technology or aesthetics of a product matures or
stabilizes and the competitive playing field levels, competition are
increasingly based cost or price.
 Second, a customer’s internal economics or financial resource
limitations may shift the acquisition decision toward affordability
as a more dominant factor. In either case, a successful product
 Supplier must focus more attention on managing product cost.
When a company faces a profitability problem and undertakes a
cost reduction program, it will typically reduce research and
72
development expenditures and focus on post-development

activities such as production, sales, and general and
administrative expenditures.
DEFINITION OF TERMS:
The following definition of terms will provide a common

basis for discussion:
Recurring production cost = Production labor + Direct
materials +Process
costs + overhead + outside processing
Non-recurring costs = Development costs + Tooling
Product costs = Recurring production costs +

allocated non-recurring costs
Product price or acquisition = Product costs + selling,

general &
73
Costs administrative + warranty

costs + profit
Life cycle costs = Acquisition costs+ other related

capital costs + training costs +
operating costs + support costs + disposal costs.
PREPARATION OF COST SHEET
It shows that what type of material CBL purchased including

its total cost
PURPOSE:
 Its purpose is to record the expenses.
 To find out the total cost of import.
 To find out the per unit rate.
IMPORTANT THINGS:
 Three things are necessary
 Estimated cost sheet No.
 Control No.
 Purchase order No.
74
DOCUMENTS:
Following documents are necessary for the preparation of cost
sheet.
 Supplier’s Invoice
 Agent’s Bill
 Freight Bill
 Form of tax
After the completion of above requirements we can prepare cost
sheet by using computer.
75
SECONDARY WORK
 VOUCHERS FOUNDING
 VERIFICATION OF VOUCHERS, COST SHEET AND
TRANSACTION
 CORRECTION OF VOUCHERS, COST SHEET AND
TRANSACTION
 PRINTING OF VOUCHERS,COST SHEET AND
RECONCILIATION STATEMENT
 BOX FILLING OF VOUCHERS

76
77
CRESCENT BAHUMAN LIMITED

PROFIT AND LOSE ACCOUNT FOR YEAR ENDED
JUNE 30,20…………….
JUN JUN JUN JUN

30, 30, 30, 30, JUN 30,
2,005 2,006 2,007 2,008 2,009
(Rupees in Thousands)
Sale 2176445 3146212 4115979 5085746 6055513

Cost of good sold 1749312 2413997 3078682 3743367 4408052
Gross profit 427133 732285 1037437 1342589 1647741

Admin & Selling exp 265849 241513 217177 192841 168505
Other income 40844 29668 18492 7316 -3860
Profit from operations 202128 520439 838750 1157061 1475372

Finance cost 137161 288453 439745 591037 742329
Other Charges 3983 9795 15607 21419 27231
141144 298248 455352 612456 769560
Profit before taxation 60998 222191 383384 544577 705770

Provision for taxation 18521 33238 47955 62672 77389
Profit after taxation 42463 188954 335445 481936 628427

78

Vertical Analysis of Profit & Loss Account
For the half year ended June 30, 2010
JUN JUN JUN JUN JUN
30, 30, 30, 30, 30,
2,005 2,006 2,007 2,008 2,009
%
Sale 100 144 130.8233 123.561 119.0683

Cost of good sold 100 137.9969 127.5346 121.5899 117.7563
Gross profit 100 171.4419 141.6712 129.414 122.7286

Admin & Selling exp 100 90.84593 89.92352 88.79439 87.38028
Other income 100 72.63735 62.32978 39.56305 -52.7611
100
Profit from operations 100 257.4799 161.162 137.9506 127.5103
Finance cost 100 210.3025 152.4494 134.4045 125.5977
Other Charges 100 245.9202 159.3364 137.2397 127.1348
100 211.3076 152.6756 134.5017 125.6515
Profit before taxation 100 364.2595 172.547 142.0448 129.5997

Provision for taxation 100 179.4612 144.2776 130.6892 123.4826
Profit after taxation 100 444.985 177.5273 143.6706 130.3964

79

Horizontal Analysis of Profit & Loss Account
For the half year ended June 30, 2010
JUN JUN JUN JUN JUN

30, 30, 30, 30, 30,
2,006 2,007 2,008 2,009
%
Sale 100 100 100 100 100
Cost of good sold 80.37474 76.72709 74.79829 73.60507 72.79403
80
Gross profit 19.62526 23.27513 25.20511 26.39906 27.21059

Admin & Selling exp 12.21483 7.67631 5.276436 3.791794 2.782671
Other income 1.876638 0.942975 0.449273 0.143853 -0.06374
Profit from operations 9.287071 16.54177 20.3779 22.75106 24.36411

Finance cost 6.302066 9.168263 10.68385 11.62144 12.25873
Other Charges 0.183005 0.311327 0.379181 0.421157 0.449689
6.485071 9.47959 11.06303 12.0426 12.70842
Profit before taxation 2.802644 7.062175 9.314528 10.70791 11.655

Provision for taxation 0.850975 1.056445 1.165093 1.232307 1.277992
Profit after taxation 1.951026 6.005762 8.149823 9.476211 10.37777

Balance Sheet
As At June 30,200……..
JUN JUN JUN JUN JUN
30, 30, 30, 30, 30,
2,005 2,006 2,007 2,008 2,009
Authorized Capital
600,000 shares rs.10/-each 600,000 600,000 600,000 600,000 600,000
81
Issue, Paid up capital 600,000 600,000 600,000 600,000 600,000
Profit & Loss a/c 42,463 188,954 335,445 481,936 628,427
127,184 165,466 812,289 1,053,418 1,395,971
Long term loans 362,098 329,968 2,986,678 3,850,828 5,163,118
finance lease 109,771 115,946 2,407,830 3,175,908 4,324,938
Deffered Libilities Staff
retirement 9,962 10,823 13,404 14,838 16,559
481,832 456,639 5,407,912 7,041,541 9,504,581
Short term bank borrowings 787,135 950,182 2,249,010 2,790,651 3,521,588
Liabilities 52,847 89,838 226,010 296,061 382,643

Creditor,other liabilities 233,644 244,989 1,206,361 1,534,382 2,020,740
Provision for taxation 18,521 22,846 51,147 63,464 79,777
1,073,627 1,307,857 3,732,528 4,696,905 6,026,356
Total Liabilities 1,682,644 1,929,962 6,547,158 8,251,102 10,683,359
Fixed assets 578,182 597,278 6,182,251 8,056,639 10,858,674
Long term deposits 2,550 5,554 32,327 43,254 58,143
Stores, spares, loose tools 124,260 146,866 469,060 591,529 763,929
Stock in trade 544,866 709,655 1,351,005 1,674,648 2,077,717
Short term investments 61,440 76,544 1,469,488 1,943,872 2,647,896
Trade debets 108,295 165,148 1,299,790 1,715,906 2,311,654
Other receives 250,407 279,626 313,728 344,575 376,235
Bank Balance 12,522 24,390 23,507 31,125 36,617

1,101,912 1,327,129 3,458,949 4,319,700 5,498,219
1,682,644 1,929,962 6,547,158 8,251,102 10,683,359

Vertical Analysis of Balance Sheet
As at 30th June, 2010
JUN JUN JUN JUN JUN

30, 30, 30, 30, 30,
2,005 2,006 2,007 2,008 2,009
82
Authorized Capital 100 100 100 100 100
600,000 shares rs.10/-each 100 100 100 100 100
Issue, Paid up capital 100 444.985 177.5273 143.6706 130.3964
Profit & Loss
a/c 100 130.0997 490.9099 129.6851 132.5182
100 91.12671 905.1417 128.9335 134.0781
Long term
loans 100 105.6253 276.682 131.8992 136.1796
finance lease 100 108.6428 123.8474 110.7008 111.5983
Deffered Libilities Staff
retirement 100 94.77141 184.286 130.2081 134.9787
100 120.714 236.6925 124.0835 126.1924
Short term bank borrowings
100 169.9964 251.5751 130.9948 129.2444
Liabilities 100 104.8557 492.4144 127.1909 131.6974
Creditor,other liabilities 100 123.3519 223.8773 124.0816 125.7043
Provision for taxation 100 121.8167 285.3927 125.8371 128.3048
100 114.6982 339.2377 126.0257 129.478
Total
Liabilities 100 103.3028 135.071 130.3189 134.7792
Fixed assets 100 217.8039 582.049 133.8015 134.4211
Long term deposits 100 118.1925 319.3796 126.1094 129.1448
Stores, spares, loose tools 100 130.2439 190.3749 123.9557 124.0689
Stock in trade 100 124.5833 1919.795 132.2823 136.2176
Short term investments 100 152.4983 787.0456 132.0141 134.7191
Trade debets 100 111.6686 112.1956 109.8323 109.1883
Other receives
100 194.7772 96.37966 132.406 117.6468
Bank Balance 100 120.4387 260.634 124.8848 127.2824
100 114.6982 339.2377 126.0257 129.478

Horizontal Analysis of Balance Sheet
As at 30th June, 2010
JUN JUN JUN JUN JUN

30, 30, 30, 30, 30,
83
2,005 2,006 2,007 2,008 2,009

Authorized Capital (Rupees in Thousands)
35.6581665 9.16428 7.27175 5.61621
600,000 shares rs.10/-each 5 31.0887 2 6 1
35.6581665 9.16428 7.27175 5.61621
Issue, Paid up capital 5 31.0887 2 6 1
2.52358787 9.79055 5.12352 5.84086 5.88229
Profit & Loss a/c 7 5 1 8 8
7.55858042 8.57353 12.4067 13.0667
5 7 4 12.767 8
21.5195846 17.0971 45.6179 46.6704

Long term loans 5 2 3 7 48.3286
6.52372100 6.00768 36.7767 38.4907 40.4829

finance lease 1 3 2 1 4
Deffered Libilities Staff 0.59204442 0.56078 0.17983 0.15500
retirement 5 8 0.20473 5 1
28.6354095 23.6605 82.5993 85.3406 88.9662
1 2 8 1 2
46.7796515 34.3509 33.8215

Short term bank borrowings 5 49.2332 4 5 32.9633
3.45203 3.58814 3.58167

Liabilities 3.14071188 4.65491 2 3 2
13.8855277 12.6939 18.4257 18.5960 18.9148
Creditor,other liabilities 8 8 2 8 4
1.10070817 1.18375 0.78120 0.76915 0.74674
Provision for taxation 1 4 9 8 1
63.8059506 67.7659 56.9245 56.4088
3 5 57.0099 8 1
Total Liabilities 100 100 100 100 100
34.3615167 30.9476 94.4264 97.6431

Fixed assets 6 6 8 9 101.641
0.15154720 0.28777 0.49375 0.52422 0.54423
Long term deposits 8 8 6 1 4
7.38480629 7.60978 7.16908 7.15064

Stores, spares, loose tools 3 7 7.16433 7 1
84
32.3815376 36.7704 20.6349 20.2960 19.4481
Stock in trade 3 1 8 5 6
3.65139625 3.96608 22.4446 23.5589 24.7852
Short term investments 5 8 7 4 4
6.43600191 19.8527 20.7960 21.6378
Trade debets 1 8.55706 4 8 9
14.8817575 14.4886 4.17610 3.52169

Other receives 2 8 4.79182 5 4
0.74418593 1.26375 0.35904 0.37721

Bank Balance 6 5 1 8 0.34275
65.4869360 68.7645 52.3530 51.4652

4 1 52.8313 1 6
100 100 100 100 100
85
FINANCIAL RATIOS
“LIQUIDITY”;
'' A firm’s ability to satisfy its short term obligations as
they come due.''
Year involved;
Base year 2008
current yea 2009
ANALYTICAL TABLE;
Name of 2008 2009 result Reason of change%
ratios change
Current 0.97:1 0.8:1 unfavorable decrease in loans 37.09
and advances
ratio
Decrease in other 29.39
receivables
Decrease in Cash 4.65

and bank balances
Increase
incurrent portion of 20.51
non current
liabilities
86
Increase in trade 37.09

and other payables
Quick 0.768:1 0.6:1 Unfavorable Decrease in loans 37.09
and advances
ratio Decrease in other 29.39
receivables
Decrease in Cash 4.65
and bank balances
Increase in trade
and other payables
increase in current 20.51
portion of non
current liabilities
RESULT;
The results show that most of the indicators are not favorable or
showing positive results .The previous year performance was better
than the current year.
REASON FOR CHANGE;

The majority reasons for unfavorable change are
decrease in cash and bank balance

Increase in current portion of non current liabilities.
decrease in loans and advances
decrease in other receivables
IMPACT OF CHANGE;
The analysis shows that the firms ability to pay off its short term debts
has declined in current year as compared to previous years as it is
87
evident from the results of various ratios and it is not having a positive
impact on the company.
“ACTIVITY”
“ The effectiveness of management towards the

utilization of resources to generate sales.”
There are two types of Activity:
Turnover Analysis
Period Analysis.
YEARS INVOLVED:
Base year: 2008
Current year: 2009
FORMULAS:
(a) Turnover Analysis
Total Assets Turnover=Sales/Total Assets
Fixed Assets Turnover=Sales/Fixed Assets
Current Assets Turnover=Sales/Current Assets

88
Inventory Turnover=Cost of Goods Sold/Inventory
Receivables Turnover=Sales/Receivables
(b) “Period Analysis”
Collection Period=No. of days in a year/Receivable Turnover
Payment Period-=No. of days in a year/Payable Turnover
Name Of 2008 2009 Result Reasons For Percenta

Ratios Change ge
Chang
e
Total 0.685 0.623 Unfavorable Decrease in loan and -37.09%

Assets advances
Turnover times times
Decrease in other -29.38%
receivables
Decrease in cash and -4.65%

bank balances
89
Fixed 1.0 0.81 Favorable Increase in net sales 25.27%

Assets Increase in property, 47.48%
Turnover plant and equipment
Increase in
long term investment
Increase in long term 16.82%
deposits
0.0138%
Name Of 2008 2009 Result Reason For Percentage

Ratios Change Change
.
Receivables 371.3 658.7 Favorable Increase in sales 25.27%
Turnover
Average 0.98 0.55 Favorable Increase in sales 25.27%

Collection days days
Period
90
Average 530 480 Unfavorable Increase in 46.38%

Payments days days purchases
Period
“RESULT”
The ability of cresent bahuman is unfavorable in current

year as compare to the base year because majority of the indicators
calculated are unfavorable in the current year.
“REASON FOR CHANGE”
The reasons of Changes are:

91
Increase in fixed assets is much more than increase in sales

Increase in sales is more as compare to current assets
Increase in collection from receivables as compare to last year
“IMPACT OF CHANGE”
Inventory turnover has deteriorated considerably and

is worse than the previous year.
Total Assets are increasing and Sales are also increasing but increase in
total assets is more than sales.
It means that management is not utilizing its resources in a proper way. But
The collection system of the company shows that the management of the
company is efficient in the collection of receivables as compare to the last
year.
SOLVENCY;
''The ability of a firm to pay its long term obligations as
they come due''.
YEARS INVOLVED;
Base year; 2007
Current year; 2008
92
Name 200 2009 result Reason for change %

of ratio 8 change
Time 2.76: 3.58:1 Favorabl Increase in net sales 29.71%

1 e Increase in gross
interes profit 43.42
t Increase in operating
earned income 50.87
ratio
Debt 0.71: 0.51:1 Favorabl Decrease in long -2.645
1 e term financing
ratio Decrease in -35.06
profit/other charges
payable -31.76
Decrease in provision
for taxation 20.59
Decrease in sales tax
Increase in property 47.485

plant and equipment,
Increase in 82.39
investment property
Increase in 16.83
long term investment
Increase in long term 0.0138
deposits
Increase in stocks, 19.29
spare parts
Increase in
stock in trade 0.4814
increase in trade
93
debts
increase in trade 45.426
deposits and short 13.87
term prepayments
increase in 4.65
investments
increase in cash &
bank balances
RESULT;
The indicators show that the company is in favorable position to pay
off its long term obligations in current year than the previous year.
REASON FOR CHANGE;
The basic reasons for this change are;

Increase in cash & bank balances
Increase in investment
Decrease in long debts
IMPACT OF CHANGE;
The company is very efficient in paying its long term debts and its
ability has increased in the current year than in the previous year. it is
having a very positive impact on the repute of the company and in
attracting more investors towards the company .
94
“PROFITABILITY”
“The ability of business to generate return for owner.”
OR
“The overall effectiveness of management is called profitability
YEARS INVOLVED:
Base year 2007

Current year 2008
FORMULAS:
(a) General Profitability Analysis
Gross Profit ratio= Gross profit

Sales
Operating Profit ratio=Operating Profit *100

sales
Operating Ratio=Operating Cost *100

Sales
Net Profit Ratio=Net Profit *100

Sales
95
(b) “RETURN ANALYSIS”
Return On Assets=Net Profit *100

Total Assets
Return On Equity=Net Profit *100

Total Equity
Return On Investment = Net Profit *100

Amount Invested Within business
Name Of 2008 2009 Result Reasons For Percenta

Ratios Change ge
Chang
e
Gross Profit 24.8% 28.4% Favorable Increase in sales 27.25%

Ratio.
Operating 19.5% 23.53 Favorable Increase in rental 152.2%

Profit % income. 47.82%
Ratio. Increase in profit on
deposit. 6444.2%
Increase in gain on
disposal of investment 100%
property.
Gain realized on sale of 6.75%
investment property.
Increase in other income
96
Net Profit 8.53% 11.36 Favorable Increase in rental 152.2%

Ratio. % income. 47.82%
Increase in profit on
deposit. 6444.2%
Increase in gain on
disposal of investment 100%
property.
Gain realized on sale of 6.75%
investment property.
Increase in other income
Operating 81.14% 77.65 Unfavorable Increase in operating 27.43%

Ratio % expenses
“RESULT”
The results show that the majority of calculated indicators

are showing positive results. It means the current year’s performance of
CBL is better than previous year.
“REASON FOR CHANGE”
The major reasons of favorable probability are;
Increase in sales.
Increase in net profit.
Increase in assets.
Increase in operating income.
97
“IMPACT OF CHANGE”
There is an increase in gross profit, operating profit,
net profit which means that indicators are covering all commercial expenses
like interest finance cost also providing the enough amount for reinvestment
of R/E.these indicators are also showing that there is an increase in asset
as sales and operating income of company but on the other hand net profit
is more as compared to capital employed operating cost of company has
increased this year but sales and operating income are covering it.
98
SWOT ANALYSIS
STRENGTHS:
Biggest Unit
Biggest unit in South Asia and exports 9 billion geans per year..
Independent Manufacturing Firm
The organization is completely independent manufacturing firm,

it takes cotton as input and gives output in the form of
garments, fabric, and yarn
.
99
Quality Conscious
Quality is the main factor for the success of any organization.
That’s why CBL is ISO 9001 certified company for his quality
products.
Own power generation plant

CBL is having its own power generation plant. So can’t be
affected by energy crisis faced by the industry now days
.
No illiterate labor
Illiterate labor intake is zero, minimum education level for
worker class is middle but primary is also accepted.
WEAKNESSES:
High turnover rate
Turnover rate is very high at worker level, which effects the
hiring and trainings cost.
Complex Hierarchy
Management is divided into many levels (like SAM AM and
JAM) so low career development chances for management
level employees.
100
Marketing Department cost

There is a market department in CBL but is not that much
effective as it should be as marketing department of being the
biggest unit of South Asia.Other competitor are spending more
on it as compare to CBL
No Advertising
Local sales are very low, Because no advertisement on radio or
T.V. by using advertisement in local country it can increase its
sales.
OPPORTUNITIES
First movers
CBL enjoys opportunity of first movers in that industry. So is
much developed and well reputed in the industry internationally
Still Biggest contractor of LEVI STRAUSS

LEVI STRAUSS is the most renounced brand of jeans, and
CBL is the biggest manufacturer of LEVI STRAUSS in Pakistan
yet.
101
Economical Barriers To new entrants

The industry is quiet expensive to enter for any new comer,
especially in the current scenario of economic and energy
crisis.
THREATS
Market share is divided with competitors

Now LEVI’s has given a part of the contracts to new firms like
US Apparel and Auzgard.
Foreign investors
Foreign investment in textile sector in Sri Lanka, Bangladesh
and India is a danger in future for Crescent Textile Mills .
Dumping duties
South Africa is thinking about to impose the anti-dumping duties
on Pakistan textile exports. If it is imposed, a reasonable export
share and big market may be lost.

102
RECOMMENDATIONS
Analyzing all the chapters conclusions and the interviews and
surveys that I have conducted, it is finally concluded that CBL
management is working in a more focused and formalized
manner.
However, to achieve their objectives successfully on the
International standards, the following suggestions are offered:
 The CBL should also take interest in the local marketing to
increase the profit.
 It is recommended to CBL that they should go for news paper

advertisement also, both for recruitment purpose
 It is recommended to the CBL management, that the

department mangers must also be given opportunity to go
abroad for updated training courses.
 The CBL management must also arrange local training

sessions for special purposes to be refreshed after every 3-4
months, like stress management, time management, crises
management etc.
 As the turnover rate is very high, the management should look

for the reasons and take effective steps to overcome the causes
and not only the symptoms.
103
 Case studies must be conducted and training literature must

be provided to the top Management (Managers and Deputy
Managers).
CONCLUSION
I got a lot of experience from Crescent Textile Mills. During my
internship we came to know that how the different activities take
place, what are the procedures
The Crescent Textile Mills is on the way of progress. It has been
earning profit for the last five years. The management is
professionally qualified and experienced.
The Crescent Textile Mills should motivate their employees by
providing different incentives. Their salary package is also not
attractive. The performance of the Human Resource
department is also not satisfactory.
Crescent Textile Mill’s product is of high quality. The demand of
Crescent Textile Mill’s products is increasing with the passage
of time. The company is expanding its capacity to satisfy the
demands of their customers. Management of the company is
trying to improve more and more to earn profit and improve the
104
economy of the
Pakistan.
GLOSSARY
Accounting :
is an art of recording, classifying, summarizing and also include

the prepration of financial statements for effective decision
making.
Accounting cycle :
Sequence of accounting procedures to record, classify and

summarize accounting information in financial reports at regular
intervals.
105
Accounting period:
Period of time required by an income statement.
Account payable :
Account payable are the short term obligation of the business.
Accured income:
Amount that is earned but yet not received.
Close ended shipment:

A shipment which involve the bank for payment.
COSTING
The estimated cost and actual cost of the CBL
products (yarn, fabric, and garment) and their variance analysis
is called costing
Gross profit:
Amount remaining after the deduction of cost of goods sold is
…..
Open ended shipment:
A shipment which hire an agent for payment rather than bank.

106
Turnover:
The behavior of employees to leave the job.
Trims and sundries

Term used in cbl for importing the buttons, zips etc.
BIBLIOGRAPHY
For the completion of this Report I collect information from

the following sources
107
Search engines:
Name of website Date visited time visited
www.google.com 23-08-2010 10:20am
www.wikipedia.com 23-08-2010 5:30Pm
www.cbl.com.pk 23-08-2010 6:00Pm
28-08-2010 5:15Pm
Practical Internship at:
Crescent Bahuman Limited

Pindi Bhattian
108

Cresent Bahuman Limited

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1

University of the Sargodha

University of the Sargodha

The Crescent Bahuman is deeply committed to organizational

The primary goal of this Internship Training Program is to prepare

organization or. My expectation about the Crescent Bahuman is

Our decision to apply at an internship site is an important one --

An internship is an opportunity that allows a qualified student to

First of all I am very thankful to Almighty ALLAH who gave me

“Parent’s Blessings are Our Most Valuable Assets”

sation is not required, and varies by position and industry.

“To be the best supplier of the products and services to our

Crescent Bahuman prepares jeans and denims related items for

We predict growth of thirty percent in the first year with sales

 Crescent Group Chronology

Crescent Bahuman, the largest vertically integrated denim

while ensuring an environmentally friendly manufacturing

The focus is to create seamless interface throughout the

manufacturing process addressing delivery, cost and quality

time. The speed of developing and getting the right product

to the customer is at or above par with manufacturers all over

Lead-time from order to delivery to market has been a

continuing focus of Crescent Bahuman Ltd. With extensive

investment into systems right from order-taking and

procurement through to production and delivery CBL has

managed to squeeze its lead time to the satisfaction of its

global customer base.

Crescent Group’s 60 Years Chronology

The diversity of The Group is reflected through its independent

The Crescent Group employs over 17,000 people and has

An article in Weekly Friday Times in the first week of April 1993

business of the home country". Presided over by eldest member

lived up with quite a wonderful reputation, bearing an excellent

Evolution of the Group

Pre Partition Era:

Madras, Jalandhar, Calcutta, and Delhi, and were running the

Post Partition Era – 1950s

The period of 1950s for Crescent Group was dominated by its

After migrating to Pakistan, the family took advantage of the

The Decade of 1960 – Diversification of

During the late 1960s the group expanded by setting up Crescent

The end of the decade, Crescent Group had emerged as one of

1980s and 90s – Shift of Group’s Focus towards Financial and

The sponsorship and management of the Group realized the

The Group further diversified its focus towards other sectors of

Crescent Leasing Corporation Limited now stands among the

Current Decade – Finalization of the Group’s

In early 2000’s, the Group paced up its acquisitions and bought 3

Leasing Company Limited.

During the same period a Modaraba company was also acquired

The Group also undertook rapid maneuvers in the banking sector

In another Group merger Crescent Investment Bank Limited

financial institutions got merged to form Crescent Commercial

In yet another merger in 2003 Pakistan Industrial Leasing

First part of the group’s financial sector penetration strategy was

Following table depicts the chronology of developments

Company Date of Incorporation /

Crescent Textile Mills 1950

Muhammad Amin 1951

Premier Insurance 1952

Crescent Sugar Mills 1959

Crescent Jute 1964

Shakarganj Mills 1967