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We manufacture premium quality of yarn in different diameters and in long and continuous length. Our range of yarn stands exceptional in terms of quality and durability. Variety of yarn produced by us includes compact yarn, melange yarn, dyed polyester blended yarn, kermal blended yarn, carbon yarn and fancy yarn. All these yarns are widely used in textiles, sewing, knitting, weaving, embroidery etc., and are offered at highly competitive prices.
COMPACT YARN: In the compact spinning system yarn quality is increased by means of narrowing and decreasing the width of the band of fibers, which come out from the drawing apparatus before it is twisted into yarn and by the elimination of the twisting triangle. The process reduces the fur ratio by 60 % while improving the strength and elongation by 15 to 20%. It also provides an unique texture to the yarn and the imperfections are reduced by 10 to 15%. MELANGE YARN: Melange yarn are produced by blending dyed polyester or viscous with white polyester /cotton. The multiple type fibers of differentiated colors are arranged randomly and piled one upon another into a stack of layers to get different shades. The yarn can be availed in variety of colors and combination of materials. DYED POLYESTER BLENDED YARN: The dyed polyester is blended with cotton yarn to get different shades. Using this process, fibre with a high tensile strength is produced while considerably reducing the production cost. KERMAL BLENDED YARNS: Kermal is an armide fibre blended with polyester and cotton to produce fire retardant yarns. These yarns are widely used to manufacture protective clothing for protection against exposure to flash fire in high risk working zones. CARBON YARN: The weaving method includes a warp supply process for supplying twist-free flat warp having opposed flat surfaces and containing carbon fiber to a weaving loom. Carbon is blended with cotton or PC blend to produce yarns that are helpful to avoid electric shocks. This yarn is used to produce protective clothing, where electric conductivity risk is high. FANCY YARNS: The weaving method includes a warp supply process for supplying twist-free flat warp having opposed flat surfaces and containing carbon fiber to a weaving loom. Carbon is blended with cotton or PC blend to produce yarns that are helpful to avoid electric shocks. This yarn is used to produce protective clothing, where electric conductivity risk is high.
SLUB: In Slub yarns short thick places are wantonly produced with different diameters and lengths at regular intervals to give a fancy effect.
MULTI COUNT: In these fancy yarns the count of yarn is varied at random or at regular intervals to create a unique texture and design. MUTI TWIST: In the multi twist not only the count but the yarn twist is also varied to give an impressive look.
Due to the changing environment in the world that world is becoming a global village due to this competition is very intense in the world market and no country can complete in the world market or cannot make progress without the development of industry. Rapid progress can only be made with the development of industry. Since 1947 to up till now Pakistan has made progress in every industry especially in the textile industry. Pakistan is an agricultural country so, the textile industry of Pakistan has supported the economy of Pakistan and Mahmood Textile Mill has its own contribution in this field. MTM is working under the Mahmood Group of industries and it was established in 1970. Since its establishment it is progressing gradually. Three spinning units of Mahmood Textile Mills Ltd. Are situated at Multan road in Moza sunaki near Chinab River Muzaffar Garh. One spinning and weaving unit is situated at D.G.Khan road Muzaffar Garh. Now MTM have installed their own power plant having capacity of 9.2 MW with the investment of 66.806 Millions. MTM is involved in the manufacturing of yarn and cloth. About 80-85% of the total production they exporting. They have there own ginning factories and farms from which they best good quality of cotton and produce better quality products.
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Mahmood Cotton Ginning pressing and Oil Mill Ltd. Tate Pure. Masood Modal Ginning Factories Ltd. Rahim Yar Khan. Masood Modal Ginning Factory. Sadiqa Abad. Masood Model Ginning Factory Ltd. Deharky. M/S Khawaja Muzaffar Mahmood Muhammad Masood Tate Pure.
MTM consists of five units. Four units are meant for spinning and one is for weaving. Unit No.1 installed with 13872 spindles in q970-71 and the name of the brand, which produced by this unit, is engine brand. Unit No.2 established in 1984 with 12486 spindles. The name of the yarn brand is Zaitoon, which is producing in this unit. Third spinning unit installed with 15360 spindles in 1989-1990 having a brand name of palm. Fourth spinning unit established in 1992 with 20400 spindles. Brand name of the yarn producing in this unit is cotton king. During the November 1997 2592 spindles were dismented and now total no of spindles in four unit is 59520.The Management make the expansion decision in 2000 to increase the spindles 5760, so total no of spindles in 2000 is 65280.
Mrs. Mehr Fatima. 1993-94. USA. So total No. And 5 Sulzer Ruti are established in 1998. Lahore. Khawaja Muhammad Ilyas.1994-95. COMPANY INFORMATION Board of Directors • • • • • • • Khawaja Muhammad Masood Chairman/Chief Executive. . Korea and Hong Kong.They have won a special merit trophy for export performance in 1989-90. Company Secretary • Ghulam Mohayuddin.1995-96 and 1996-97. Weaving unit established in 1991 and has 98 Sulzer Ruti shuttle less looms. Of Sulzer Ruti shuttle less looms is 103 in weaving unit. 1990-91. Mrs. Taiwan. Auditors Hameed Choudary & Co. Europe. Khawaja Muhammad Yunas. They are producing Grey cloth in this unit and exported to Japan. Khawaja Muhammad Iqbal. Chartered Accountants 7-Bank Square. Muhammad Jalal-ud-Din Roomi. Khadija Qureshi.
Multan. Mulatan road MuzaffarGarh Masoodabad.Khan road.G. Mills • • Mahmoodabad . Muzaffar Garh. Habib Bank Limited. United Bank Limited. . D. Registered Office • Mehr Manzil Lohari Gate.Bankers • • • Muslim Commercial Bank Limited.
Recording of Local and Export Sales. This department controls all the financial matters of the mills. ACCOUNTING SYSTEM There is a centralized computer system in the MTM. Making Financial Decision. Purchase of Miscellaneous Items. Recording of Cash Transaction. All the accounting is done in the head office of different units. This process starts from the preparation of vouchers. Dealing with Financial A/C Activities. Financial Analysis. Managing Credit Activities. Dealing with Purchase of Miscellaneous Items. Making investment Decision. Record of Suppliers A/C. Function and Responsibilities of the Department • • • • • • • • • • • • • • • • • • • Financial Planning Fund Receiving. Managing Cash. Making Capital Expenses Decision. Tax Management. These vouchers are: . Dealing with Banks.FINANCE DEPARTMENT AND ACCOUNTING SYSTEM Finance controller MTM Amin Pal leads this. Preparation of Record for Auditing Purpose. Preparation of Semi Annual and Annual Financial Statement. Maintain Goods of A/C etc.
DayBook or Journal Vouchers These vouchers served daily for transferring account in which payments are not involved. Then the recording of those transactions are made in the appropriate books of accounts. Bank Vouchers At the time of issuing cheques these vouchers are prepared and after the payment bank A/C is credited and part is Dr. Bought Day Vouchers These are prepared at the time of purchasing of goods. Sales Vouchers At the time of export and local sale these voucher are prepared. These books are: • • • Cash Book Day Book Bank Book . If director has any inquiry then he can ask the relevant person.Cash Vouchers The cashier prepares cash vouchers which payment or receipt of cash is involved. After every transaction voucher is prepared and then send to the chief accountant with all supporting material and chief accountant checks these vouchers and send to the auditors for the internal auditing purpose and after this send to the director. the cheque is signed by the chief accountant. finance controller and the director.
At the end of the month these are posted in the General ledger control account. Day Book Journal vouchers are entered on the daily basis in this book and the auditors check the entries of postings. This is posted to main ledger for control at the end of the month. This book has different columns at the end of the month the total of these is posted in main ledger and the reconciliation is also made with the bank statement at the end of the month. Cash closing balance is calculated daily and checked by auditors. Posting to supplier’s ledger is made from this book and the total of other purchases is posted in main ledger at the end of the month. Bank Book This book is maintained to control all the bank accounts of the company.• • Bought Day Book Sale Day Book Cash Book Cash payment receipt vouchers are entered in this book on daily basis. . Sales Day Book This book is maintained for the sale bills and the posting is made to the customer ledger. Bought Day Book This book is maintained for the purchase of goods for each unit separately.
Excise Duty on Yarn. Expenses • Administration Expenses. Main Ledger or Control Ledger From the main ledger/control ledger Balance Sheet is prepared. The recording and the posting checked by the auditors. customers and suppliers record is maintained in this ledger. liabilities. Then trial balances are prepared and if these trial balances are tallied then the income statement/profit and Loss Accounts and Balance Sheets are prepared. Local & Export Sales. All the assets. . Export Development Surcharge. Commission of Sales. At the end of the month trial balance is prepared to check the accuracy of the account by seeing the Dr.Ledgers After recording the information in these books of accounts then it is posted to appropriate ledger accounts. • Misc. These are: • • • • • Sales account. Profit & Loss Ledger For each unit separate Profit & Loss ledger is prepared to check the profitability of each production unit. • Selling Expenses. • Manufacturing Expenses. & Cr. Balance of the Trial Balance. In this ledger all account regarding the income and expenses are recorded. Charges • Maintenance Charges. Charges.
5% income tax is deducted at the time of payment. Customers balances are worked out.5% 3. Company deducts income tax form the professionals. Goods received are credited in account of suppliers and payment made is debited in account of supplies. . loans & advances etc. daybook. and bank book and sales book to maintain the customer’s record.5% 12% Personal Ledger This ledger is prepared to record all the data relating to the personal account of the company’s employees.Customer’s Ledger Posting in customer ledger is made from cashbook. prepare receivable and submitted to the directors. Second type of ledger is maintained for which the company hires the services. bankbook and bought book day book. contractors & commission agents at the following rates: • • • Professional/Service renders Contractors Commission Agents 5. If supplies are more than 25.0000 than 3. At the end of each month trial balances are prepared & see the employee personal data regarding the leaves. Suppliers Ledger There are two types of supplier ledgers: This ledger is mean only for the purchasing of goods and the entries in this ledger is made from cashbook. daybook.
• General shift salary sheet. Preparation of Salary Sheet In MTM Muzaffar Garh workers perform their duties in three shifts which are called shift A. • Office staff salary sheet.WAGES AND PAYROLL SECTION Payroll system deals with the expenses of the employee on work in an organization. B. • Officer staff salary sheet. . From the first date to 10th date of the Month Salary sheets are prepared. So all the data about the employees & their payrolls is recorded in the computer. Salary sheets that are prepared in the head office are of the following types: Shift salary sheet. & C. As there are three shifts so three salary sheets one for each shift are prepared. Wages are calculated according to the category of worker & decided rates. Timekeeper is responsible for the record of attendance & leave of all the workers. Time officer sent the Haazri register /attendance sheet with related information to the head office. converting hours to gross earnings & computing allowances & deductions & then net pay. Preparing a payroll requires collecting employee work hours. In addition to accounting activities a payroll system commonly performs activities that might be viewed as personal operations such as sick leaves & vacations etc. In MTM system is computerized a payroll management system. Period of each shift is of eight hours.
allowances. Allowances In MTM allowances are paid to worker for their contribution towards the organization’s objectives. nature of work. date of first appointment. Dearness allowance is calculated according to the formula i. Dearness Allowance To compensate the workers dearness allowance is given to the workers of MTM.L.A.A) Cost of living allowance is given to the workers according to the rules & regulations of the Govt. workman no. sex.. age no. 10% of the basic pay is given as a house rent to the employees of the organization. Cost of living allowance is provided according to the basic salary of the worker.. is also given to the workers. Cost of Living Allowance (C. House Rent House rent is given to workers of this organization. If the worker does not work full days of the month then this allowance is not provided to the worker by the organization. weekly rest. Following are the types of allowances that are given to the workers. Days the worker attended. name of the worker. Attendance allowance is given to the worker if he has worked full days of the month. monthly record of the daily attendance of each worker. deduction & actual wage paid are mentioned.In the wages sheet serial no. increases the cost of living allowance this additional C. . whenever Govt.L. social security no. gross wage payable.e. Attendance Allowance Attendance allowance is also given to the worker for their contribution to organization objective. father name. rate of pay..
Conveyance & Medical Allowance.Dearness allowance = (wage earned +C. .A. No. Indexation 18% of basic pays C.L. Of days worked The difference of salary is a gap between the salary of boss & subordinate.L. This allowance is also given according to the basic pay. It is calculated as Differ Salary Badli Allowance = ……………….A. Of days the worker attended in a month. Badli Allowance This badli allowance is given if a subordinate works in place of his boss for some days when the boss is on leave. One Time Allowance If an employee achieve production targets or show good efficiency he will be rewarded by one time allowance.O.+40)18%+40 Where wage earned is calculated by dividing the basic pay by total days of the month & then multiplying by the no.
. Advances & Loan There is a facility of advance for the worker of MTM. Income Tax Income tax is deducted from the salary of the officer staff. Similarly when guilt is proved against the worker he may be fined. loan is given on the discretion of the management & return of the loan is made on monthly installment basis. Due to an emergency or any other reason when an employee apply for the advance. Fine • • • • • Advances & Loan Rent Fair Price Shop Income Tax One Time Deduction Fine When worker misconduct during his jobs the labour officer or the assistant labour officer may fine him. 000. Advance is given against the salary of the worker while. There is no limit of fine but it is according tot he nature of the guilt & the capacity of the worker. Income tax is deducted according to the rule from those employees whose annual income is Rs.40. firstly it was Rs.50. 000 or above. then this advance is issued by the labour officer & it is deducted from the salary of the worker. Then this fine is deducted from the salary of the worker.Deductions As there are some allowances with are given to the workers of the MTM to compensate them similarly there are some deductions from the wages of the workers.
The inventory system has these significant aspects: • • • Its ability to operate at larger level. If person is temporarily demoted then the difference of salary between the past & present job over the no. . Of days worked is deducted. STORE & SPARES SYSTEM Inventory management system is very important system along with other computerized systems. These all facilities of the system help the organization for the quick operation & the best utilization of capital resources. The inventory carried in the store viewed as capital investment & this investment should be in such a manner that the items carried in the store should not bound the resources. Store & Spare System at MTM is one of the main systems in process. One Time Deduction Its opposite of the badli allowance. This system makes sure the in time supply of spare parts & consumption items to the department of production unit. Measurement of inventory performance. Its keeping ability. Rent A cot is provided to the workers of MTM for the purpose of rest & sleeping. This system is logically & physical divided in two parts as much of this is done at mills while some work related to generation of purchase orders to suppliers & selection of supplier is done at the head office.Fair Price Shop There is a facility for the worker to buy the things on credit from the fair price shop. At the end of the month all these bills are deducted from the salary of the worker. There is a facility to pay the cost of the cot in four installments on monthly basis or a worker may pay the whole amount at once.
G. maximum amount to be ordered. and economic order quantity & order frequency as its tools. In spinning • • • • • Blow Room Carding Drawing Simplex Ring Ball Bearing . For this purpose spinning units have two store rooms.Khan Road Muzaffar Garh. • Store Spare Parts.The most important factor of inventory system is its ability to forecast the necessary details. material consumption report unit wise & department wise. material acquisition report etc. The major responsibilities of this section are: • • • • • To record all the store purchase. Store spare parts have divided into further subsections. Forecasting is the best way to insure the in time supply of spare parts & consumption items. • Store Packing. Stores Mill has a policy to overhaul all the machinery of each department in a chain process so that no interruption in production work should occurs. Store & spare system at MTM works on these basic rules of inventory & statistics. Store Room Division • Store Electric. • Store General. party wise purchases. while weaving unit has it own separate store. Forecasting uses reorder flags. One main store room is working in the Moza Sunaki Multan road Muzafar Garh spinning mills & second store room is working in 4th spinning unit situated at D.e. To record the entire store issues. To keep a check on the purchases by verifying their bills To keep a check on all stores by surprisingly checking their record & physical existence of items in store. To prepare various reports relating to store i.
When completely filled store issue requisition is received to the store incharge. . If the quantity is not available in the store or it is less then the purchase demand document is prepared by the store incharge & send to the head office in the commercial department or purchase department which deals all kind of purchases. New requisition is prepared by the department when store in charge inform the department that the required item is available in the store alter the purchase of that item.• Belts In Weaving • • • • Warping Sizing Loom Sheds Folding etc Store Issue Procedure Whenever a department needed spare parts or any other thing from the store then the responsible person of the concerned department filled a store issue requisition & sent to the store room. If the said items are not completely available in the store room the quantity available is issued to the concerned department & the remaining quantity is rejected & at the same time a purchase demand document is prepared for the same item & sent to the head office. The sample of that item with GRN & IGP sent to the department for the approval of the quality of that particular item. If the items are available in the store room then issued to the concerned department & document is kept in the store room & a entry is made in the consumption register after that this document send to the head office for the preparation of consumption reports. If the item is according to the said quality then sample is kept by the department & previously rejected store issue requisition quantity again forward to the store with approved good & inspection report & the required quantity of the consumption item is issued to the department. Store Purchase Process This store purchase process starts from the demand created by the department of the consumption items if the consumption items are available in the store then store incharge issued the required quantity to the department.
M. The said party . As the company has its own ginning factories therefore. In the case if the department is not with the agreement of the quality & price of the item then department call quotations from suppliers.M. • • Purchases Stores Purchases are of two Kinds • Raw Material • Store Purchases The responsibility of getting main raw material (cotton) is with the director of the company. Emergency Process If some item is short in store & some emergency need of that item arises then instead of routine process emergency process is adopted which is as under. of commercial department is responsible for making all sorts of purchases. checks these comparative statements & takes a decision about cash or credit purchases. From these price of the item then department call quotations from suppliers. From these quotations a comparative statement is prepared by the purchase incharge & G. Two methods are used for the purchase of items routine purchases & emergency purchases.Commercial Department The G. The lowest price offered by the supplier is selected & approved by the director. while the remaining raw material is purchased from outside. This is normally done through the telephone. Purchase demand for the emergency required item is prepared & is send to commercial department at head office where purchase indent of that item is generated. most of its fulfilled through these factories. Then on this purchase order purchase officer gave order to the party which last time supplies that item. These credit purchases are normally for the bulk quantities. If the item is not new & the department is agree with the price & quality of the item then the department sent order the current supplier for the purchase of that item. This department deals with two sections. In this way an item is purchased.
Then store incharge send GRN & SIR to the head office before this G. GRN includes item receipts & their price. • Making of purchase orders. The concerned person checks the quality of the item if it is up to the standard then the concerned person approve that item. Daily Receipt Register Entry After IGP an entry is made in the daily receipt register of the items or the record purposes. Goods Receipt Note (GRN) After this a GRN is prepared by the store incharge & it is also included inspection report. IGP & sample of the item is sent to the concerned department for which purchase is being made for the approval or rejection of the quality of the particular item. Duties or Function Performed by this Department are as under • Checking the quotations taken from suppliers. sample is kept in the department & IGP & GRN are send back to the store with store issue requisition. • Sends inquiries outstations & get quotations. • Maintenance of purchase demand register. Inward Gate Pass When items supplied by a party are received on gate then these items are checked according to the bills attached with supply & a documented is created manually called IGP at gate. After proper costing supplier ledger is updated & the head office makes the payment to the supplier.supplies the item as early as possible & all the office work is done later same as in routine supplies. This GRN. • After the purchase of the item it is sent to the factory & an inward Gate pass is prepared.M . . Mill verified this GRN. On the store issue requisition required quantity of the items are issued to the department. • Collection of the bill.
. Reports Store & spare system at MTM prepare several types of reports that fulfill different system needs.5% income tax is deducted from their payment & this goes in the Govt. SIR is also entered in the computer to update the record of the consumption of the item. Outward Gate Pass If the item is rejected by the concerned department then the outward gate pass of that item is prepared & it is send back to the supplier. Revenue.If the supplier payment exceeds from 25000 then according to the Govt. List of these reports with their features is as under: Party Ledger This report list the party codes with their description. Purchase Journal After the approval of the item from the concerned department & payment of that item from the head office entry of that is made in the purchase journal by the store incharge. After this it is send for the entry in the computer to update the record of the particular item. rules & regulations 3. This report is printed when some new party is added or a party is canceled. Consumption Register When certain items are issued to the different departments then entry of that item is made in the consumption register.
item code of their unit. quantity in purchase indent. Outstanding Purchase Indents This report is prepared for the purchase indents that are outstanding. It contains the cost center description. item description & inventory control fields which are not used by store & spare system at MTM. sub. . group code. sub code. item code. Item-wise Outstanding Purchase Order This report prints the outstanding purchase orders item-wise. bin location in the store & balance. required by. It contains main. This report is generated when some item to a department is added or deleted. S. It also notifies the incomplete indents. item description. This report contains the department name. description & quantity of the item issued during the month. purchase indent no.. item code. Item code. This report contains the description of code. Monthly Consumption Report This report is generated monthly to see the department item-wise consumption of the ending month. outstanding quantity & total outstanding quantity for more than one purchase indent outstanding. This report helps to know the quantity of each item outstanding to different parties.Store-wise Item Code Listing This report prints the item codes department-wise. report for the month.No. Master File Listing This report has the complete list of master file cost center-wise. This report helps management to make decision for item quantity in new purchase indents.
Objective of the Store. • To control & record all the inventories. • Communication with purchase office. This report also helps in determining the parties. “Either we should export or die”. • Arranging the demands. agencies provide all possible assistant to the businessmen for selling the goods overseas & carefully examine the figures of the monthly export transactions. • Collection of purchase goods from the receipt room. The Govt. • Keeping the stock of the store up to date. • To dispose off all the dead stock. Thus report helps to know the quantity of different items outstanding to each party. • If the stock is not available then the demand is send to the purchase officer. . This report also shows the cost center of consuming department with SIR no. item description. date. • To provide demanded goods to all the departments.. item code.Party-wise Outstanding Purchase Orders This report prints the outstanding purchase orders party-wise. quantity issued & issue type. EXPORT TRANSACTIONS In the modern world all the countries of the world whether they are developing or under developed are pre occupied with the problem of selling the merchandise in the foreign countries. Function of the Store • Collection of the demands from the department & issue material from the store. To-Date Consumption Report This report shows the to date consumption of each item in current year. sometimes the Government machinery goes to such an extent Of pressing to the businessmen that it says.
therefore. It is a dyanamic. these days. authorizing the seller. to draw in accordance with certain terms & stipulating in legal form that all such bills (drafts) will be honored. Export Documentation There are a host of problems. The exporter can’t receive payment & the importer can’t make it. which an exporter or an importer has to face in the overseas trade. which arise due to international specialization of labour. of the country to pay for the imports & achieve a balance of trade. Unless the overseas trade is properly documented. if they comply with the letter’s terms. A Bill of Exchange. which it consumes. Form “ E “. Trade. The businessmen who are engaged in the export transactions must export standard quality of the goods at normal prices so that they could compete easily in the world market.Export of goods & services is necessary because there is no country in the world. It sets forth under what terms & conditions the person in whose favour the letter has been opened may draw drafts against such credit at the same time guaranteeing the payment or acceptance of such drafts. is a two-way affair. A Bill of Lading. Certificate of Origin. No country can hope to sell its goods abroad. which produce all the goods. Export is never static. 3 Form. Letter of Credit In the worlds of Frank Henius. R. The main documents used in exports are: • • • • • • • • • Letter of Credit. The export enables the Govt. restless & changing. Commercial Invoice. Brief description of each document is given below. Packing List. Trade between the two countries also arises because of economic advantage. unless it is also prepared to purchase goods in return. Certificate of Inspection. . “The letter of credit is a written instrument issued by the buyer’s bank.
According to Prithard, “The letter of credit is a commitment on the part of the buyer’s bank to pay or accept drafts drawn upon it provided such drafts don’t exceed a specified amount”. The international chamber of commerce defines the documentary credit as “ any arrangement however named or described where by a bank (the issuing bank) acting at the request & in accordance with the instruction of a customer (the applicant to the credit) or is to make payment to or to the other of a third party (the beneficiary or is to pay accept or negotiate bill of exchange (draft) drawn by the beneficiary, or otherwise, such payment to be made or such draft to be paid accepted or negotiated by another bank against stipulated documents & compliance with stipulated terms & conditions.
Parties to a Letter of Credit The L/C has four parties to it, namely,
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The buyer is the importer or account party. The bank issuing the L/C. The paying bank on which the draft is drawn. The seller or the exporter who receive the benefit of the credit.
Types of Letter of Credit There are various classes of credit, the important of them are:
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Irrevocable or revocable. Confirmed or unconfirmed. Documentary or clean. Fixed or revolving.
Advantages of Letter of Credit The advantages of L/C are summed up as under:
The exporter on the production of shipping documents to the advancing bank can obtain necessary finance. He has not to wait till money is received from the importer. Through the letter of credit the exporter can establish his credit standing both on the importer & the buyer’s bank by proper delivery of the merchandise & the shipping documents. The importer does not like to undertake an unwanted risk. He, by opening a L/C in favour of seller, is saved of the risk of making payments before the receipt of goods. The importer will make payment to a bank in his own country against delivery of shipping documents. The L/C greatly facilitates overseas business & makes the payments of goods easy. The L/C also helps in importer & the exporter of merchandise to rely on the credit standing of each other. The importer has not to send the yellow metal to the exporter. The importer pays for the goods received in the currency of his own country & the exporter is also paid by the advancing bank in the currency of his own country. The export L/C establishes legal right of getting payment of the goods exported in the foreign country.
Commercial Invoice Commercial invoice is a business document, which is prepared by the seller of the goods & is handed over to the customer & the full information about:
Description of goods. • Price per unit at a (Seller Country) particular location. • Total value of goods. • Packing Specifications. • Invoice no. & Invoice of. • Terms of sale. • Letter of credit no. • Identification marks of the packages. • Bill of lading no. • Shipped from/to. • Gross & Net weight of goods.
There is no standard form for a commercial invoice. But the contents must comply with the regulation of importing country. The main purpose of the commercial invoice is to check whether the appropriate goods have been shipped & that there unit price; total price marking on the packet is consistent with those mentioned in other documents. Commercial invoice issued in sets of five or six & is printed on papers of different colors.
Certificate of Origin The Chamber of Commerce certifying that the goods, which have been exported, have entirely or largely been manufactured in the country sated on the certificate usually issues the certificate of origin. A certificate of origin is a signed statement providing evidence of the origin of goods. These are of ten required by the authorities in the importing countries in order to satisfy themselves that the goods originates from a country which imports are permitted or to support a claim for the professional import duty.
Packing List This list is required to supplement the commercial invoice when numerous units of the same product are being shipped. It is also needed when the quantites, weight or contents of the individual units in a shipment vary. This list enable the receiver of the shipment of check the shipment & the exporter evolve his own packing list. It also helps the custom offices to inspect the goods. There is no specific form prescribed for the packing list, but it normally contains:
• • • • • • • • •
Description of goods. Packing specification. Vessel name & port of shipment Form/To. Letter of credit no. Identification marks of packages. Bill of lading No. Form “ E “ No. Buyers name & country. Gross & net weight of package.
on the other hand. Ocean freight. It serves as sign receipt for the goods given to the shipping company from exporter.B. & seal no. for the the by The exporter in prescribed form prepares a bill of lading. It is released to the . There is no standard from for the bill of lading. Receiving party name/address & port of discharge. A bill of lading is a very important document of export. is the right to claim goods transported by the carrier. Description of goods. It constitutes the certificate of ownership for the goods received from exporter. The customer can claim the goods at the port of destination producing the bill.” In other words. rate. A Bill of Exchange is a negotiable instrument & is considered a symbol of money. It serves the following three purpose: • • • It defined the terms of contract between the exporter & shipping company carrying the exporter & goods form the port of shipment to port of destination. or by the authority of. Vessel name & no.Sheldon is a “ a document issued & signed by. In case of a Bill of Exchange. daily received on the board & undertaking received to the consignee or the like order & condition as received to the consignee or to his order or assigns provided that the freight & any other charges specified in the bill of lading have been duly paid. But generally it contains: • • • • • • • Shipper name/address & port of shipment. They obtained such form from shipping company or from their agents. Container no.A Bill of Lading A bill of lading as described by H. directing him to pay on demand or a some future time a sum of money to order or to Bearer. a bill of lading is a receipt issued by the carrier for the goods received & also a transportation contract to deliver the goods to a specified person provided the freight & other charges are paid. A bill of lading. A bill of lading is different from Bill of Exchange. Gross & net weight of goods. a drawer directs an unconditional order in writing to a drawer.
A Bill of Exchange. . The following are the Conditions. requiring the person to whom it is addressed to pay on demand or at fixed or determinable future time. There are three parties involved in the bill of exchange. It must be a written order. • • • The drawer. These are: Documentary Bill of Exchange. signed by the person giving it. • After sight Bill of Exchange. A bill of lading in favour of a particular person can’t be negotiated unless the word order or ‘bearer’ is written on it whereas a bill of exchange us negotiable in favour of a particular person even without the addition of such words as ‘order’ or ‘bearer’. The similarity between the two. however is that they can be transferred by delivery or endorsement. The English Bills of Exchange is an unconditional order in writing addressed by one person to another. • Sight or demand bill of exchange. The drawer is the person who orders payment (creditor). • Clean. which make bill of exchange a negotiable instrument. A bill of exchange or a draft is an important instrument for effecting payment in international trade. a certain sum in money to or to the order of a certain person or to bearer.drawee upon the discharge of its obligation. The drawee is the person who is ordered to pay (debtor) & the payee is the person to whom payment is ordered to be made. • Time or Usance. The drawee. • After Date/Time Bill of Exchange. There are six main types of bill of exchange. • • The Bill of Exchange must be an unconditional order. The payee. which are used in Trade.
Description of Goods. The banks regard the discounting of Bill of Exchange as a very useful investment. The Bill of Exchange. Quantity of goods exports. Card n. which are being exported by certifying with negotiation bank. Importance Bill of exchange plays a very important role in the national as well as international economic transactions. A Bill of Exchange is thus a self-liquidating credit. Bill of exchange facilitates borrowing & minimizes boarding of funds. Thus with the help of foreign bill of exchange the cost of transporting precious metals b/w the trading countries. It must be made payable to order or to bearer. who is the authorized dealer of State Bank of Pakistan? This form has two sections. A Bill of Exchange can get it discounted at the bank whenever he is in need of money for consumption or for commercial purposes. helps in making international payments. Whenever the commercial banks are in need of cash they get these bills of exchange rediscounted at the central bank. Name & address of authorized dealers. The businessmen can easily purchase goods by promising to pay specified sum at a determined future time. he can arrange to sell the goods in the market & the proceeds can be used for meeting the obligation. Section one contains: • • • • • Exporter I. The exporters sell the foreign bills at the current role of exchange & receive the value of their exports in their own currency. It must be payable on demand or on a determinable date.) . Value of goods as mentioned in invoice & terms as (FOB.• • • • One person to another must address it. C&G. CIF etc.D. Before the maturity of bill. In it the exporter declares the amount goods. It must indicate the payment of a certain sum in definite currency. which is drawn either on an individual or a firm or a bank in an other country by the exporter (foreign bill of exchange) greatly. Form “ E “ It is declaration to be furnished by exporter pursuant to section (21) of the foreign exchange regulation Act 1947.
g. & name of Vessel. and the remaining 15 to 20% the sell in the local market. We are also satisfied ourselves about the bonafied of the importer and their credentials etc. China. Of the packages. About 80 to 85% of the total production they are exporting to the Japan. export Reg. e.” In which they certified that above mentioned exporter is bonafied businessman in Pakistan & he made arrangement with us for the realization of goods exports proceeds of the goods declared with in the four month from the date of shipment and we satisfied with the said arrangement. they set the export price by taking notice of demand and competition of the market. invoice number. as far as possible. Bill of lading no.C. Before export sale the export department obtained report about the products available for the export from the production department.” Marks no. Their wording or data content. . about shipment of current goods in terms of quality.I. The time of inspection as close as possible to the shipment date. Name & address of exporter & C. letter of credit no. • • • The issuing authority. Land Custom Post. quantity etc. No. The use marginal exports pricing system because export pricing depends upon the demand. Certificate of Inspection When the buyer to assure himself.• • • • Terms of shipment & Port of destination. The second section of this form is “The certificate of authorized dealer. Export Procedure MTM is exporting yarn since the establishment of first spinning unit by MTM is in the business of grey cloth export since 1991-92 with the establishment of a weaving unit. After assessing the cost of goods. USA etc. “Not earlier than a day before shipment. or for more valuable consignments. He can call for submission of a pre-shipment certificate. And name of carrying vessel is written for the reference or a linkage to the other documents. The letter of credit should stipulate.
The contract contains the following terms. then negotiation bank has no authority to change any term & condition of the L/C. fax telex etc. Value of goods & terms of sale. The issuing bank advises the credit to the beneficiary through its corresponding bank operating in our country. It is mention in the L/C its up to seller to negotiate any one of country bank. After accepting the L/C its now the export department to fulfill all the terms & conditions of the L/C before its expired & shipped the goods before the last shipping date mention in the L/C. They make three copies of the contract for the reference of each party. However the buyer on the request of the export department asks the issuing bank & the bank authorities may change & all changes of the discrepancies of the L/C are in the account of the seller. agent abroad. Description of the goods. If both the parties are agreed on rates. Terms and conditions of trade then the export department prepared the contract. Which is stipulated in the contract. Port of destination. Date & place of shipment. • • • • • • • Seller/buyer name & address. Than they contact with the persons who are interested in importing the goods through mail. When the production . Indentor commission rate.Competition and cost of goods. which in mutually signed by the buyer the seller and indentor if any. Trans shipment & partial shipment allowed or not. After accepting the L/C. the export department gives the last date of Shipment to he production department to manufacture the goods before the last date of shipment & packed & marked goods in the form mentioned in the L/C. Next step is that the buyer submitted L/C application to his banks (the issuing bank). This notifying bank which accepts the draft under L/C then negotiate these documents with the export department. who is dealing with trade. The import commission gets his commission from the buyer. This contract has no legal value but it is moral responsibility for the both buyer & seller to fulfill all the terms & conditions mentioned in the contract during the trade. If any change the export department wants in the L/C.
packing list. (2 copies). The shipping agent then arranges the container to load the goods & also arrange the vessel for the goods. (6 copies). Bank draft in favour of controller excise & land custom revenue. The export department then prepared the Banking Documents & sends the following documents to negotiate bank for negotiation. bill of lading. L/C photo copies by electric mail or fax to the buyer. • • • • • Bill of lading Original RJR Commercial invoices Packing lists Form “ E “ to the seller. (one copy). . (2 copies). • • • • • • Commercial Invoice. L/C photo copy. The export department then send the copies of the commercial invoice. bill of exchange. (4 copies). • • • • Bill of exchanges Commercial invoices Packing lists Bill of lading (2 copies). APTMA “ EPC”. (6 Copies) Packing list (6 Copies) Form “E” along with relative certificate. (3 copies). full set no. form “ E “.department informs them that goods are ready for the shipment then they prepared the shipping documents & send to their shipping agent which contains. as mentioned in the L/C to send these copies in favour of the buyer after the shipment of the goods. (5 copies). Then he paid the custom duty to the excise & custom land revenue & sends all the tested copies of.
Local Sales Yarn Cloth 1999 370. MTM increase the 5 no new Sulzer Ruti Shuttleless looms and now MTM has the 103 Sulzer Ruti Shuttless to complete the export Grey cloth . who proceeds the credit in favour of the seller account on the terms stipulated in L/C.575.K? The training program0me started during January 1998 and after successful completion.060. (2 copies).• • • • • Beneficiary faxes Beneficiary certificates Form “ E “ Attachment to Form “ E “ Letter of credit (one copy).947.591.775 31.716 1998 224.823 Export Sales Yarn Cloth 1999 1.531 753.418 45. (one copy).369. separately to MTM each unit consisting of four Spinning and One Weaving unit. (2 copies). Original.652 The increase in export sales of Grey cloth in 1999 is mainly due to expansion of weaving unit and the ISO 9002 Certified. The bank check the documents & sends them to the issuing bank.178.839 1998 1.563. certificate under ISO 9002 have been awarded on 05/10/1998.850. The bank deducts their changes from the account of the seller.265. Is a foreign Company with its Head Office in U.592 818. And the MTM management organized to produce the Quality goods. To complete the export demand. from M/s System 9000 (Pvt) Ltd.340. Karachi.
. We hope that the export of MTM will increase more & MTM will enjoy the more profit in future.demand.
Each foreign manufacturer of such spare parts for textile sector has appointed their agents in big cities such as Lahore. After the approval manufacturer send the invoice Performa to the importer. Karachi. assistant & typist who are working under the supervision of director. king of packing. Then for the approval of purchasing of these items the consultant is made with the CEO. After the preparation of comparison chart. reports are provided to the directors. The demand for imported spare parts raised from production units & is sent to import section. prices. Then duties are paid by the management. Indonesia etc. country of origin of goods. name of exporter. is opened when material is shipped by the party. enhancing the productivity & improving the quality of the yarn. The lead-time is usually six weeks. Raw material other then cotton such as artificial bier etc. They contract with the beneficiary bank when the material is shipped & proof the documents provided by his bank & payment is made to the importer. terms of delivery & payment.e. It helps in reducing the per unit cost. Major items of imports • Spare parts • Machinery • Artificial Fiber • Film Screens The management tries to import the latest machinery & their spare parts as much as possible. During this period the required items are provided to the concerned department. Faisla Abad etc./C. the quality of items. quality & quantity. In invoice program these things are clearly mentioned i. etc. port of destination. volume & mean of transportation (airline. Are imported from Korea. gross weight.). For this purpose the import officer consult with various parties through fax or telephone. It is responsibility of the import section. For the cotton the company has its own ginning factories.IMPORT SECTION The import section must be efficient in order to fulfill the required demand within the lead-time. The comparison chart has all the information about the agent. Japan. these ginning factories fulfilling the demand of the factories. Comparison chart is prepared. After invoice is OK an L. sea. In this section there is import incharge. country of destination. If import officer any difficulties or problem then he consult with directors. They make contract with them. road. . port of loading. consignee.
Hierarchy • • • Manager Operation. Main system is kept in the computer room and they are using 10 terminals. They have experts for the maintenance and control of system and data. This mini computer has 1 G. Two terminals are used for the inventory management system. Four are for the financial system and one is kept in the computer room while the export system has not introduced due to some complications.D.B of H. .COMPUTER SECTION MTM started computer section in 1992. The Director are fully aware about the problem of YK2 and have taken several measures to overcome this problem The Company’s Senior Finance and Computer staff along with consultants are working on YK2 assignment. It is expected that this work will be completed. They are using mini computer system of NT-Server. Computer Program / System Analysis Data Control Assistant. and 8 MB RAM. And they control on the problem.
. MTM has started a captive energy project with a name of Mahmood Power Generation & it is a matter of great pleasure for the Company that it has invested almost 100% sponsor stake amounting RS. Uninterrupted supply of electricity will reduce the energy losses & wear tear expenditure. So it will improve quality of the products. Power projects are totally exempted from all taxes.806 millions in Mahmood Power Generation Limited from self-guaranteed funds. This huge investment will accrue following benefits to the company.2 MW. This power Generation Plant will produce enough energy to run the whole mills machinery. Capacity of this captive energy project is 9. which shut down due to load shedding & production process is delayed due to this energy break down. Due to the energy crisis in the country.MAHMOOD POWER GENERATION LTD. income tax as well as turnover tax under section 0d of the income tax ordinance. to meet the increasing demand of the energy & to run the functions of the whole firm smoothly. 66. After receiving dividend from Mahmood Power Generation Company’s performance & profitability will improved.
For better quality and most productive competition each unit is responsible for its production. Thus units consist of 62112. installed with 13872 Spindles. . overhead and record separately.PRODUCTION DEPARTMENT • Spinning Department • Weaving Department • Spinning Department There are four spinning units in Mahmood Textile Mills Ltd. demand. Spindles of production. Establishment and allocation of spindles in each unit is as follows: MTM unit # 01 established in 1970. And each unit is responsible of its production.
170. which these units are producing. Of spindles to be 65280.M. are of export quality and about 10% they are selling in the local market or use for cloth production in the weaving unit. 11. installed with 15360 Spindles. Approximately 90 % of the yarn. For the implementation of this heavy expansion program the management successfully procured financial facilities from different banks at confessional rate of mark up. 5760 spindles making the total No will thus increase the production capacity of the mill.R is also in hand and will be completed next year. it is better to understand the common standard of yarn measuring. modernization and expansion plans were taken into consideration by the Management. Additions of Machinery or RS. MTM unit # 04 established in 1992. Before describing the manufacturing process of yarn.00 (M) has been made in the year under report for laboratory equipment and for modernization of back process of one unit.00 (M) under B.MTM unit # 02 established in 1984. Expansion program of RS. installed with 20400 Spindles. installed with 12480 Spindles. In order to maintain future promising prospects of the Company and to remain competitive in international market. The plans were based on depth analytical study to enhance overall performance and profitability of the company. These decisions were part of the strategic vision of the management to bring the company to be a leading one in textile sector. . balancing. MTM unit # 03 established in 1989-90.
Yarn counts up to the 20 Ne. If the yarn is drawn out further. are called coarse yarns. Thus Ne. This relation determined buy the extent of the drawing process is designated by numbers.2 yarn will be finer than Ne. about 60 are fine yarn. Drawing frame Section. after which an interval of 10 is used. foreman. The standard for the yarn count of cotton is 01 pound of fiber drawn out to make 840 yards of yarn. . At least 1. Combing Section. In MTM they are producing normally 20s and 30s. Packing Section. assistant foreman. Simplex Section.1 . • • • • • • • • • Mixing room. which are called the yarn count. Up to Ne 20. Auto Cone.1 or Ne.2 or 2s. the resultant thickness or size is known as count No. Blow room. Carding Section. The yarn is size. General manager for production controls of the production department under his supervision a technical manager / mill manager. and fitter’s works in different section of the department. Ring. there is always a fixed relation between the weight of the original quantity of fiber and length of the yarn produced from that amount of raw material. The count rises by single numbers. 1. so that one pound makes twice 840 yards it is identified as Ne.Yarn Count In the spinning process. Production Process Input raw cotton Spinning Process Output Yarn During the manufacturing operations raw cotton passes though the following sections to become yarn. Only even numbers are used b/w 20 and 60 above Ne 60 the count rises by intervals of 5 until 100. 20 to 60 are medium yarns.000 employees are working in three shifts in four spinning mills.
Mixing and Blow Room Input Raw Cotton Processing Output Laps of Cotton. Blending is necessary so as to obtain the uniformity of fiber quality. Each bale has a weight of 170 Kilograms or 375 lbs. The weight of the laps is fiexed and it is approximately 26 Kg and the length of the layers of the cotton is about 15 yards. workers removed the compressed mass of raw fiber from the label and cotton is torn in to small pieces than mixed it manually and the tempreatures of B/R is kept high to eliminate the moisture. The lap is cylindrical cotton roll. The cotton which is sent to B/R must have maximum level of moisture from 8% to 10%. . cylinders with protruding finers open up the lumps and free the trash and trash falls through a series of grid bars.e. Then it further sent to the card for further cleaning and fiber separation the waste comes from this process is called gutter. This machine is automatic i. In blow room these instructions and information are based on quality of moisture in the cotton and the length of the fiber. opening is necessary in order to loosen hard lumps of fiber and disentangle them. burrs and bay remaining seeds in order to prepare the fiber for spinning into yarn. Cotton issued to blow room statement is prepared. Thus the cotton in issued and send to mixing / blow room. opening and cleaning processes are performed respectively. The fiber is mixed and passed through the opener. Further in this section blending. Mechanical bale pickers pluck thin even layers of the matted fiber form each of a predetermined number of bales in turn and deposit them into a hopper. When cotton is needed in blowroom demand note is prepared for the issuance of cotton. leaves . These function are accomplished through a continiuos series of stages. cleaning is required ot remove trash such as dirt. When the cotton emerges from the opener it still contains small tufts with about two-third of the trash. A laboratory is established for each production unit which provides the necessary information about the use of cotton bales. The output of B/R is a lap.
are used on one breaker machine. it would be impossible to produce fine yards from what is originally a tangled mass. The breaker machines are used to prepare slivers. if the slivers were put singly. The remaining impurities must be removed. The eight plastic cones of slivers. otherwise. This web is drawn through a funnel shopped device that molds it into a round soft ropes of cotton called card sliver. The initial process of arranging the fibers in a parallel fashion is known as cording.Carding Section. In drawing section two kinds of machines are working: • • Breaker Machines. Input laps of cotton processing output sliver cane before the raw stock can be made removed. which prepares single sliver of cotton by joining these eight slivers. disentangle the fibers & arranged it in a relatively parallel manner in the form of a thin web. Input 8 card slivers Process Output one breaker machine sliver. Drawing Frame Section. This machine remove the remaining trash. This process of drawing or drafting eliminates irregularities in the thickness of different slivers that would cause too much variation. the fiber into a some what parallel lengthwise alignment. Input Breaker Machine Slivers Process One Finisher Machine Sliver. Finisher Machines. . which are prepared in cording section. This word is done on a cording machine. The fiber must be disentangled & they must be straight end. This is necessary for all staple bifers.
In this way a sliver is prepared in carding section by using 64 slivers step by step. It is a very important section or you can say that it is a back bone of spinning unit in the ring section these bobbing are placed on the frames where further drawing out & twisting . Simplex Section Input Sliver Process Output Roving Bobbin. This operation eliminates as much as percent of the original card sliver. Sliver prepared in previous section is used in the process of preparation of bobbins in this section.The same process is adopted again but here the using eight can slivers are those which has prepared by the breaker machines are used & one again a single sliver is prepared by joining those eight slivers. which has a demand & can be sold in local market. It is done to eliminate little variance of thickness among them. The combing process forms a comb sliver made of the longest fibers. This is considered a high quality wastage. These prepared slivers are sent to the simplex section. Combing Input Slivers Process Output Slivers. Thus almost one fourth of the raw cotton becomes waste & called comber nail. When the fiber is intended for fine yarn the sliver is put through an additional straightening called combing. The machines working here in simplex section twisted these slivers & enlarged through the process & rounded on the big bobbin & these bobbins are used in the ring section for the preparation of yarn. which in turn produces a smoother & more over yarn. Ring Section Input Rovib Bobbins Process Output Yarn Bobbin. The canes are filled by the slivers & than these canes are reached in the simplex section.
good packing ensure the convenience of buyers & transporter. because the main purpose of packing is to provide the product to the customer in the best possible condition.takes place & the yarn of different counts are produced on the different colors of the small bobbing. Packing & labeling Packing is the final & most important section of the production department. • 32 Cones of Weight = 3.17 lbs each. Auto Cone Section Input Small bobbing Process Yarn on Cones. Immediate & easy identification & recognition of product become possible if scientific methods of packing are used. It becomes advantageous to transport the product without damage if they are properly packed. A good packing also ensure the uniformity & consistency in the product sold in the market. • 24 Cones of Weight = 4. . • 1 Bags/Cartoon Weight = 100 lbs. The small bobbing prepared in ring section is used in auto cone section to form the yarn in final shape. At the same time. In this section these cones are packed in the bags for local sale & in cartoons for export purposes.125 lbs each. The six small bobbing of yarn are used at a line in a machine. The machine uses only one bobbin & rolls its thread in the form of a yarn cone when the yarn of one bobbin is finished than the auto cone machine selects the other bobbins automatically restart its function during this process if the thread in the bobbins breaks the machine search out the two ends of the thread from cone bobbin & surprisingly rejoin both the ends without making any knot the weights of the cones are fixed according to the requirements of clients.
5 lbs each. description of products.• 40 Cones of Weight = 2. . The trademark & brand names are also placed on each cone packing & on the bag or cartoons. handling instructions & gross & net weight marked on the packed with the help of stencil. The name of Consignee. the packing of each count is also distinguished by specifying different colors.
Sizing Section The most important thing in the weaving department is sizing. The customer specified the demand on the written order & distinguished each item i. Sizing Section. • • • • • • • • Weaving Process Warping section. It is also called “Back Bone “ of the Weaving department. Packing. no of ends & Picks per inch & with of the cloth. the process is as follows: Input yarn Weaving Process Out put Grey Cloth. Cutter. Grey cloth is made according to the client’s requirements. Warping Section In this section there is parallel shape creel warping machine & the capacity of this creel machine is about 530-640 cones.e. Loom Sheds. Beams are prepared according to the specifications given by the buyer from these cones in this section. Drawing Section. The purpose of the warp sizing is to apply a .WEAVING DEPARTMENT In the Weaving Department Grey cloth is produced. Folding. which count should be used for warp & weft.
the yarn is passed in the reed frame according to the requirements of the design of the cloth. Drawing Section In drawing the sized yarn pass through the reed frame.e.A. These looms are installed in two sheds: • • Shed 01 Shed 02 53 looms.protective coating on the yarn to enable it to with stand the complex stresses to which it is subjected in the weaving machines. which is ready to weave.V. After passing yarn through reed frame the beam is transferred to the loom shed. The drawing process is important for the designed cloth i. Polyvinyl alcohol & other things are used in the sizing for the reduction of friction between the yarn. P. . Starch Lubrication It is used for the softness of the yarn. In the sizing machine following sizing materials are used: Maize Starch It is used in the sizing as a major ingredient for strengthens the yarn. Loom Sheds In the loom sheds of the MTM there are 103 Sulzer Ruti projectiles shuttle less looms installed for the production of the Grey cloth. 50 looms.
Hole or Tore.The quality of the cloth is checked by the formula as: Ends per inch * Picks per inch * Width of the cloth produced Quality of Cloth = --------------------------------------------------------------------count * Weft Count. Main faults of the Grey cloth are as follows: Floats. quality of the Grey cloth is checked 7 controlled according the international. . the segments of this section areas follow: Grading Segment Grey cloth from the loom is transferred to this sub section & cloth is graded according to the Japanese standards. Kinks count variation. Double Pick. etc. Oil Spots. Mispick. Mending Segment In mending Sub section oil spots are eliminated with the chemical spray gun & curable faults are cure with the help of steel comb. Cracks. Tangled Warp. Grading of the cloth is made by seeing oil spots & faults with & lengthwise. standard. Warp Folding Section This is also called quality control section i.e.
. 40-79 cut 55 cut & so on. Where cloth is rechecked & if the faults signifies by the grading department are removed then it is passed otherwise rejected. Yarn product range • • • Cotton Yarn (combed) range 5s-32s. Cutter Section Then this cloth is sent to the cutter section & according to the demand of the customer that he wants 120 up. Cotton Yarn (carded) range 10d-20d. PRODUCTS OF MTM MTM is producing following cotton yarn products. 110 up. 80 up. Cotton Yarn (combed) range 16s-32s. mainly for the exports & some of them are produced for the domestic market on demand.Checking Segment After mending cloth is transferred to the checking section.
4/1 Interpretation of this above is that two threads will go from the upper side & one will go from the lower side at the time of production on looms similarly the others. 2/1 .Grey Cloth Product Range MTM has 110 different qualities of the Grey cloth & they are producing according to the customer’s demand. • Palm. • Zaitoon. . Band Names of MTM Yarn Products. • Cotton King. • Engine. 3/1 .
.247. Actual Production Converted into 20.862.909 60 Picks (Sq. It is difficult to describe precisely the production capacity in spinning /weaving mills since it fluctuates widely depending on various factors such as count of yarn spun. Mtrs). spindle speed.479. Of Looms installed. Actual Production Converted into 21.PRODUCTION ANALYSIS Capacity & Actual Production Yarn No. Mtrs). Of Spindles installed. of Looms Shifts Worked 1999 103 112.000 1998 59520 63.785 1998 103 109. Cloth No. No.585.975.000 21. of Spindles Shifts Worked Production capacity at 20’s 1999 59520 64. the width & construction of cloth woven etc.321.870 20’s Count Kgs. No.975.295.295.951 19. twist.000 20.995 Count (1089) Shifts Kgs.162 19.888.677 Installed capacity at 60 Picks 19. It also varies according to the pattern of production adopted in a particular year.000 (1080) Shifts (Sq.282 19.
COSTING DEPARTMENT It is very important in every business to find out the correct cost of the unit of the product. so manufactured in production units. So it is very necessary to find out the actual cost of each unit of the products.e. export etc.e. excise. Data Collection The major function of the costing department is data collection i. In MTM various types of products are prepared i. . for higher management. So costing is an important functioning area in any manufacturing concern. yarn of different counts & no. which is manufacturing in the factory. collection of daily production reports from each of the production unit. Of qualities of Grey cloth etc. Functions of Costing Department Following are the function of costing department. Input & Output Ratio The third function of the costing department is to find out the input & output ratio. MIS Reports Prepare different types of management information reports regarding the sale.
Stock Maintaining It also helps in stock maintaining & inventory control. Of Spindles worked. Cost Evaluation Different formulas are used to find out the cost of the yarn & Grey cloth. Yarn length = Count * Weight * 840 Picks * 3 Tape length = ------------------Weft counts . These are: Total Production * 35.274 A-Ops= ----------------------------------No. Guideline for Management.e. decision making & pricing policies.Cost Controlling The costing department helps in cost controlling i. Costing department also provide guideline in forecasting. they analyze the actual cost of the product by collecting production data & prepare suggestion report that where the cost is to control by which method we can reduce the cost of the product.
Total Ends = Width * Ends per inch – 24 No.0936 Weight of warp length = ---------------------------------------------Warp count * 840 Width * ends per inch Reed Space = ----------------------------Ends per inch – 4 Reed space * Picks per inch * 100 Weight of weft = -----------------------------------------------Weft count * 840 Picks length Yarn per pound = -------------------Total Weight Meter * Width Square meter = ----------------------39.37 . Of ends * tape length * 1.
20462 * .9144 By using these above formulas. They are both Microsoft excel.No. we can easily find out the cost of the yarn & Grey cloth. these formulas quickly calculate the required results. . Firstly they were calculating the cost through manual system but now they are using computers for the calculation purposes. Of ends * length Actual count = -------------------------------Net Pound weight * 840 Cost of yarn = Cost of yarn * Cost of weft Cost of Grey cloth = Cost of yarn + sizing cost + contribution margin Reed count = ( Ends –1 ) ( 95 / 100 ) Weight of weft Weight of weft ( Kgs ) = ----------------------2.
TESTING LABORATORY Some tests are made for the quality control purpose in the laboratory & these tests are made through different machines. Strength & Tenso Rapid Machine These are used to find our strength of the yarn. Abrasion Tester Rubbing the yarn to measure the correct sizing quality does this test. Viscose Tester This text is done to find out the viscosity of the sizing material. . This test is used to find out the correct yarn count & the variation in the counts. Uster Tester 3 This test is used to find out the thick & thin places & nepses in the 1000 yards test of the thread. Moisture Tester This test is used to measure the humidity in the cones used in the weaving section in the weft side.
One assistant labour officer & one senior clerk are working under the labour officer.. These punishments are given according to the “ Law of industrial & Commercial Employment”. During the interview the candidates are judged either they are suitable for this jobber or not. The executive & senior executive post is filled from outside as well as inside the organization by virtue of promotion & transfer of employee from other department Salary. department. Charge Sheet & Inquiries When a worker shows misconduct then the labour officer or the assistant labour officer may dismiss from the job due to misbehavior. allowances & other benefits are discussed by the management then the personal file is prepared & kept by the record clerk for future reference. If the worker shows the positive result then the head of the department in which department he is working on trial basis selects him. Then appointment letter is issued. The top management & directors fill the post executive & senior executive. workman no.LABOUR OFFICE Labour office performs its function under the control of labour officer. Record clerk maintains the record of the employee. basic pay. Main Responsibilities of Labour office Labour officer is responsible for the recruitment of the worker. If this candidate pass his interview then he is selected for this job. Then applications are received from the workers for the job. First of all requisition for worker is received from the different departments. Similarly a labour officer may fine the worker of on the basis of misconduct. Six days are required for the completion of his trial. shift & nature of the job are mentioned. Then final selection is made & the labour officer issues appointment letter. Other Functions & Responsibilities of the Labour Office Labour office is responsible for the performance of the following functions & responsibilities. Primary selection of worker is made on the basis of past experience of the applicant. After the primary selection worker join his job on trial basis. . In this record information such as name.
After the verification of the head of the school the stipend are given to the children according to the class. There is a dispensary in the MTM which give the medicines to the patient of this organization. This gratuity is given according to the rules & regulations. In the month of March applications are invited from the workers of MTM. which are given by the company to the workers.Social Security Benefits Social security department of Pakistan has opened different dispensaries in different factories & at district & division level. Following are the benefits & facilities. So every factory is bound to make contribution for the education of the children of the worker of the factory to gave this right. When permanent employee leave the organization. Education As Education is the right of every person. Every year the organization paid the amount on education regularly. All the factories are bound to contribute some amount toward social security dispensaries for handling the medical aid according to the social security rules. One doctor & his assistant are performing their duties in this dispensary. which are mentions in the Labour Law. Gratuity to Workers This facility & benefit of gratuity is also provided to worker according to the Labour Law. This contract has been made with the State Life Insurance Corporation. . Company paid every year to the State Life Insurance Corporation. Other Facilities given To the Workers The Company takes keen interest in giving the facilities to its employees. Group Insurance The benefit of insurance is also provided to the workers of this organization.
Facilities like light & water are provided freely. Privilege leaves & Casual leaves are granted to staff & worker. There is a one doctor & assistant to do this job. VolleyBall & Cricket in the mill. These canteens are run on “ no profit & no loss “. 08 days in a year. Canteens The facility of the canteen is provided to workers. Similarly workers are accommodate in the worker quarters. These canteens are opened 24 hours to cover the three shifts of the mill. Sick leaves. For this purpose sports grounds are available for Football. Hockey. Free Dispensary There is a dispensary in the MTM near the outer gate of the mill. There are five canteens each canteen for one unit. where the medicines are given freely to the workers on showing the employee card.Residential Accommodation Officer colony serving the purpose of housing facility to the officers of the organization. In this Company leave without pay can be taken at any time. Approximately 500-600 employees are living in this colony & worker quarters. There are also two private hotels outside the mill where food is provided at very low prices. Kabadi. . Sports Health has its own in the life of Human Being. The detail of these leaves are given below: Earned leaves Casual leaves Sick leaves 14 days in a year. Good health can be maintained by the good exercise. 10 days in a year. Leaves Leaves are also given in the MTM according to rules & regulations.
TIME OFFICE Time office is performed under the direct control of assistant Labour officer. One head timekeeper & a clerk are working there in the time office. C & General shift are mentioned. Time card is issued to the worker by the above-mentioned office. Functions & Responsibilities of Time Office The time office keeps the proper record of presence & absence. After signed by the labour officer & the mill manager this report is kept in the time office. There are junior timekeeper in each unit for shift A. C. B. On the summary attendance report attendance of shift A. Time Office is one of the most important offices of the organization. B. . This is the main function of this office. This report is signed by time keeper & head timekeeper & sent to labour officer. The time office also prepares similarly daily attendance report shift wise & summary of attendance report. These leaves are recorded in this account of concerned worker date wise. There is also a separate leave register for recording different types of leaves such as sick leave. When the shift start these time cards are deposited in the time office & timekeeper mark the presence or absence on the time card as well as on the salary sheet/haazri register. Time office is responsible for the maintenance of the over time register. Time office maintains the cot register. leave without pay & casual leave. social security leave. Daily attendance report for general shift. Company provides the cots to the employees & they payback the amount of those cots on the basis of month wise installments. From this register overtime is calculated & given to the worker on the next day. prepared by the timekeeper of the time office. Leaves are also mentioned on this haazri register.
SECURITY OFFICE Security is the basic necessity for the safety of plants & other assets of the organization. The retired army officer controls the security office. All the employees of this office are hired form retired army personnel. To meet with the mishaps. Security of documentation. Security of employees. . Responsibility of smooth running of mills. MTM established an well-organized security system. Incharge of the security office (security officer) arrange all functions performed by the office as mentioned below. Security of assets. Objective of the Security Office • • • • • Security of Communication.
Set up of the security office is as follows: Security Officer Assistant Security Officer Officer Assistant Security Officer Assistant Security Security Inspector Officer Security Security Officer .
so the security office also performs its duty in shifts. which is entering in the mill. is entered in the “ Amad “ register & every thing. Checking the employee pass makes the employee’s entry. In every shift one security inspector controlled all the security functions with a team of more than thirty security guards. vehicles of raw material & finished goods entry is made through proper channel. is entered in the “ Nikkas “ register. .Security Guard Guard Security Guard Security As MTM performs their production program in shifts. For the private person entry is prohibited in the mill area but for the guests. which is going out form the mill. Functions performed by the security office are as follows: Entry Control Barrier at Gate At the main gate the security guards performed their duties & checked the entry of private persons & company employees. Every thing.
Three copies of inward gate pass are prepared. O ) . S.For Material Vehicles All the material vehicles are checked at the main gate. The security guard guides him about the office of the concerned person. After unloading the material the vehicles are also checked & issued “ Out Ward Gate Pass” .O.For Guests Security guards received every guest at the main gate & inform to assistant security officer ( A.S. which are sent to the receipt room after verification one copy is returned to security office. After checking security officer issue “ Inward gate pass “. two copies are sending to with the material vehicle to receipt room & one is left in the security office record. After visiting the gate pass is collected from the guest & entry of the time of departure is made on the register. address. 2. A. time & name of the concerned person whom he want to meet. Form the two copies. issued him gate pass / visiting pass with the entry of visitor name. date. Asked the guest about whom he want to meet & inform the concern person if the concerned person wants to meet his guest in his office.1.
3. . Every entry in the technical area is checked & after checking the inward gate pass entry is made.Entry Control Barrier at Technical Gate Second entry control barrier is established at the technical gates.
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