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IMAGE GARMENTS (PVT) LTD

REPORT ON INTERNSHIP

PREPARED BY: MUHAMMAD BILAL

VU ID: MC080404230

SESSION: 2008 - 2010

SUBMISSION DATE: JULY 30, 2010

VIRTUAL UNIVERSITY OF PAKISTAN

SCANNED COPY OF THE LETTER OF UNDERTAKING

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SCANNED COPY OF THE INTERNSHIP CERTIFICATE

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 DEDICATION
I happily dedicate this report to my Beloved Parents for all their love & attention which has
made it possible for me to make it up to this point and as well as the Internship Advisors, I
came across in, who bestowed me with the courage, the commitment and the awareness to
follow the best possible route, by his unmatchable style and by best possible training.

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 ACKNOWLEDGEMENT
Obliged to the “ALMIGHTY ALLAH”, The CREATOR of universe, the most gracious
and merciful from WHOM I never heard ‘NA’, whenever I knocked at HIS door and WHO
blessed me with this potential & ability to make some contribution to the already existing
ocean of knowledge.

All praises after “ALMIGHTY ALLAH” are due to HIS “HOLY PROPHET HAZARAT
MUHAMMAD (Peace be upon him), the most perfect exalted among WHO & us is forever
a torch of guidance and knowledge for humanity as a whole.

Afterward, I shall be very thankful for my beloved Parents, who grow me in a shape that I
make them proud and complete my internship report of Image garments (Pvt) Ltd.

ALLAH has provided me a life time opportunity to perform working at Image Garments
(Pvt) Ltd for tenure of 7 weeks. The aforesaid occupancy bestow me precious moments to
make learning and get experience of the practice life in successful approach.

Soon after, I am heartily grateful to the following persons who confer me possibility to
enhance my understanding and knowledge about the systems of Image garments, which
would ultimately useful for my future career and whose cooperation enables me to compile
this comprehensive report.

• Mr. Qamar Aftab (Chief Executive)

• Mr. Muhammad Ishaq Beryar (Chief Finance)

• Mr. Syed Sajjad Hussain (Manager Accounts)

• Mr. Muhammad Saleem (Asst. Manager Accounts AP)

• Mr. Asad Ranjha (Asst. Manager Accounts AR)

• Mr. Imran Rafiq (Asst. Manager Taxation)

• Mr. Ishtiaq-ur-Rehman (G.M Admin & Human Resource)

• Mr. Usman Qamar (Director Purchase)

• Mr. Shabbir Ahmad (Manager Purchase)

• Mr. Muhammad Azhar Babar (GM Operations)

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• Mr. Muhammad Safdar ( Sr. PPC Manager)

• Mr. Aman Ullah (Sr. Quality Manager)

• Mr. Rehan Ata (Sr. Manager IT)

• Mr. Sadiq Hussain (Manager MIS)

• Mr. Anayat Hussain (Manager Costing & Budgeting)

• Mr. Haroon Nisar (Manager Fabric)

• Mr. Saboor Mirza (Asst. Manager Export)

• Mr. Zahid Maqbool (Manager Inventory)

• Mr. Ahmad Raza (Manager Cutting)

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 EXECUTIVE SUMMARY
Image Garments has grown as Manufacture kam Knit outerwear exporter having a turnover
more than 100 millions annually. Today, Image Garments is considered being at par with
multinationals operating locally in terms of its quality knit outerwear products and
management skills.

I recently have done my internship in Image Garments, in which I got training in various
departments. The internship basically revolved around the product knowledge training and
the Financial activities held at Image Garments. The system, the style of working & the
commitment of the employees in Image Garments is really exemplary.

The difference between the success & failure is doing things right and doing things nearly
right. The Image Garments has always tried for success and creativity in its products. That
is why: it is known to be one of the leading organizations in Pakistan. Irrespective of all
these positive points of Image Garments I have noticed a few areas where the improvement
can really increase the efficiency of Image Garments

In this report I have given a very brief review of what I have seen and felt during my
internship. I have mentioned all of my active and passive learning in my Internship report.

Moreover, I have also performed the Financial Analysis of 3 preceding years and
commented on the entire picture of the organization.

Furthermore, I have discussed about my learning skills and capabilities in the whole tenure
that is all about the Textile Terminologies, process of the Productions and working
activities of Finance Department. I have made it possible to write each and every thing that
I have learnt over there. I have all my practical efforts in the form of this manuscript that’s
the asset for my future career.

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 TABLES OF CONTENTS
Page #

1. Brief Introduction of Image Garments’ Business Sector 1

2. Over View of Image Garments (Pvt) Ltd 2
i. Brief History 2
ii. Nature of the Organization 3
iii. Business Volume 5
iv. Product Line 5
v. Customers 10
vi. Competitors 10
3. Organization Structure 11
i. Organizational Hierarchy Chart 12
ii. Number of Employees 13
iii. Main Offices 13
iv. Introduction of all Departments 14
v. Comments on the Organizational Structure 25
4. Plan of your Internship Program 26
i. A brief introduction of the branch where I did internship 26
ii. Starting & Ending Dates of your Internship 26
iii. Names of the Departments in which you got training and 26
the duration of you training
5. Training Program 28
i. Detailed description of the operations/activities 28
performed by the departments I worked in.
ii. Detailed description of tasks assigned to me. 41
6. Structure of Finance Department 44
i. Departmental Hierarchy 44
ii. Number of Employees working in Finance Department 44
iii. Finance and Accounting Operations 45
7. Functions of Finance Department 46
i. Accounting System of the Organization 46

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 ii. Finance System of the Organization 46
iii. Use of Electronic data in Decision making 48
iv. Source of Funds 49
v. Allocation of Funds 49
8. Critical Analysis 50
a. Financial Analysis 50
i. Ratio Analysis 50
a. Liquidity Ratio 50
b. Leverage Ratio 51
c. Profitability Ratio 52
d. Activity Ratio 54
e. Market Ratio 56
f. Cash Flow Ratio 57
ii. Horizontal Analysis 58
iii. Vertical Analysis 59
iv. Industry Analysis 60
v. Trend Analysis 61
b. Future prospects of the Organization 63
9. SWOT Analysis of the Organization 64
10. Conclusion 66
11. Recommendations for Improvement 67
12. References & Sources used 68
13. Annexes 69
i. Financial Statements (2009 - 2008) 69
ii. Financial Statements (2008 - 2007) 83

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 BRIEF INTRODUCTION OF IMAGE GARMENTS’ BUSINESS
SECTOR
Textile sector is one of the key sources of incomes, which contributes more than 45% of
the Pakistan’s earnings in our economy. In the race of involvement towards Textile
Exports of Pakistan, the contribution of Faisalabad at international levels is unrivaled.
Image Garments is also playing its contribution in economy to some extent.

Image Garments is in Textile Export Business of Knit Outerwear garments since 1985 in
Pakistan. The organization consists of a complete vertical unit with all processes ranging
from Yarn-procurement to Packaging based on integrated Information System.

The company is principally engaged in manufacture and distribution of knitted apparel

outerwear products right from basic to highly fashioned garments. In pursuance of goal to
provide its customers quality products in minimum time frame, Image Garments has set
up a high-tech ERP Oracle E Business Suite 11i, which is providing efficient Material
Requirement Planning and Enterprise Resource Planning activities. Moreover, Image
Garments knitting and operation team comprises highly skilled and trained professionals
including qualified engineers. This project will enhance the value of money for customers
by offering even more competitive rates to our clients.

Image Garments makes latest, traditional and cultural embroidery designs on home made-
up and provide a delicate product line in this stuff. It is currently operating a very large
linking section with the help of computerized linking machines and is able to offer the
finest quality.

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 OVER VIEW OF IMAGE GARMENTS (PVT) LTD
1. Brief History of Image Garments

Image Garments is a manufcturer of quality Polo Shirts, T-Shirts & Sweat Shirts and
registered as a leading exporter of Knit outerwear
goods in Pakistan established by Mian. Qamar Aftab
in 1985. Image garments is leader in creating,
developing and manufacturing of knitted apparel
outerwear products right from basic to highly
fashioned garments thus responding to emerging
trends in the industry. It translates conceptual ideas of
customers into reality and shapes them through our
technical bent and professional acumen.

Image Garments is adhering with intrinsic values of commitment, integrity, innovation

and rapid services from last 25 years and supplying its quality products to major
European and American importers, wholesalers and retail chain stores.

To name a few, Image Garments has been working with American eagle, Converse,
Tommy Hilfiger and many others. At Image Garments, we feature a high tech production
facility that is flexible and quickly adaptable to meet customer specific needs. Image
Garments do all sorts of embellishments with embroidery, appliqué and printing.

Vision Statement

“To be Worlds best knit outerwear garments company”

To transform the company into a modern and dynamic knit outerwear garments company
with highly professionals and fully equipped to play a meaningful role on sustainable
basis in the economy of Pakistan.

Mission Statement

To provide quality products to customers and explore new markets to promote/expand

sales of the company through good governance and foster a sound and dynamic team, so
as to achieve optimum prices of products of the company for sustainable and equitable
growth and prosperity of the company.

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 Message of the Chief Executive (Mian Qamar Aftab)

“The chief executive who knows his strengths and weaknesses as a leader is likely to be
far more effective than the one who remains blind to them”

At Image Garments (Pvt) Ltd, we firmly believe in the "Customer Satisfaction

Approach". As, it always come through 100% fulfillment of Commitment, Quality,
Competitive Prices and in time shipment.
We are producing satisfied customers around the globe every minute.
We look forward to an opportunity to serve customers, as we firmly believe that there is
only one judge of great services, a satisfied and wining customer.

2. Nature of the Organization

Image Garments (Pvt) Ltd is a Knit outerwear textile

which offers a broad range of knit apparel to meet
customer manufacturing needs. Whether big or small,
customer orders are executed with precision, in
accordance with the highest quality standards.

“You can rely on Image Garments to get the

job done right!”

Image garments deals in Polo shirts, Zipper Shirts, T-Shirts, Sweat Shirts, Hoods (Both
pullover and zipper), Jogging and sweat trousers and shorts.

At Image Garments, we feature a high tech production facility that is flexible and quickly
adaptable to meet your specific needs. Image Garments do all sorts of embellishments
with embroidery, appliqué and printing.

Quality Control

Quality procedures and checks exist at all levels of operations at

Image Garments. Image Garments has installed strong IT based
systems to ensure delivery of quality products to our valued
customers.

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Compliances

Image Garments is proud being SA 8000, SA 14001, Oeko Tex and WRAP certified.
These certifications ensure that its products are produced under lawful, humane and
ethical conditions. Following are the core standards these certifications ensure.

• Compliance with Laws and Workplace Regulations

• Prohibition of Forced Labor

• Prohibition of Child Labor

• Prohibition of Harassment or Abuse

• Compensation and Benefits

• Hours of Work

• Prohibition of Discrimination

• Health and Safety

• Freedom of Association and Collective Bargaining

• Environment

• Security

Image Garments (Pvt) Ltd Image Garments (Pvt) Ltd Image Garments (Pvt) Ltd
ISO 8000:2001 certified Oeko - Tex Certified ISO 14001:2004 certified
Faisalabad, Pakistan. - November 18, Faisalabad, Pakistan. - December 18, Faisalabad, Pakistan. - October 28,
2008 2009 2009

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 What sets Image Garments (Pvt) Ltd apart?

• 25 years of manufacturing experience

• Real Time Online Production Reporting System

• Strong IT Based Quality Systems

3. Business Volume

Image Garments has a total number of stocks Rs. 70,000,000/- (700,000 shares @ Rs.
100/- each) and Issued, subscribed & paid up capital is Rs. 49,700,000 (497,000 shares @
Rs. 100/-). Moreover, Image Garments has installed capacity of stitching over 400,000
garments per month. Image Garments is SA 8000 and ISO 14001 Certified.

Image Garments has a highly skilled team with years of manufacturing experience. Its
goal is to “always surpass your expectations!”

4. Product Lines

An overview of Image Garments (Pvt) Ltd Manufacturing Capabilities:

• Polo Shirts

• Sweat Shirts

• Hoods (Both pullover and zipper)

• Jogging Trouser (Sweat Pants)

• T-Shirts

• Zip Shirt

• Open Front Shirt

• Under Garments

• Shorts

• Golf Shirts

• Base ball Shirt

• Tennis Shirt

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Embellishment Samples

Embroidery

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Appliqué

Printing

Special Treatments

Keeping forth our customers' potential needs, we offer a variety of value added services.

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Organic Cotton Apparel
Organic cotton is grown using methods and materials that
have a low impact on the environment. Organic production
systems replenish and maintain soil fertility, reduce the use of
toxic and persistent pesticides and fertilizers, and build
biologically diverse agriculture. Third-party certification
organizations verify that organic producers use only methods
and materials allowed in organic production.

We have added certified material suppliers into our supply chain and now offer garments
made with organic cotton.

Moisture Wicking (Performance) Apparel

Performance apparel is made with fabric containing moisture
management capabilities. It efficiently wicks moisture and
transports it away from the skin, helping maintain body
temperature and ensuring consistent comfort through even the
most extreme and rapid transitions in climate and physical
activity level. It keeps you dryer longer in more situations over a greater range of
activities and climates.

We have partnered with some reliable suppliers in Thailand and Taiwan and import
fabric from them to fulfill your performance apparel needs.

Soil Release Finish

A soil release finish allows fabric to remain clean three to four
times longer than fabric left untreated. Like the name implies, a
soil release finish keeps dirt away from binding to the fabric and
allows it to be more easily removed through cleaning. Soil
release finishes protect against both water-and-oil based soils and resists wetting by oily
and watery liquids.

We offer this finish via reliable and competent dye houses we have partnered with.

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 Stain Resistant Finish
A finish is added during dyeing to provide stain resistance. It
creates a barrier to make it harder for certain stains such as
grass, ketchup and mustard to stain fabrics made with this
yarn. This stain resistant finish also provides some resistance
to oil based stains.
We offer this finish via reliable and competent dye houses that we have partnered with.

5. Customers of Image Garments

Our portfolio of customers includes some of world's renowned brands.

6. Competitors

There are many competitors of the company Group. It includes national and international
competitors.

National Competitors

• Shama Textiles (Pvt) Ltd, Faisalabad

• Omer Apparels (Pvt) Ltd, Faisalabad

• Amtex Textiles Mills, Faisalabad

• Adnan Sports (Pvt) Ltd, Gujranwala

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 • Jaguar Group, Faisalabad.

• Akbar Fabrics (Pvt) Ltd, Faisalabad

International Competitors

• Silver Screen Image India (Pvt) Ltd, India

• Ramdve Fashions, India

• Tonton Garments (Shenzhen) Co. Ltd, China

• D.M Apparels, India

• Prideway Industrial Company Ltd, China

• Secret Seven Design & Merchandising, England

• American Apparel, United States

• Beni Ltd, Bulgaria

• Body Script, Canada

• Chef D’oeuvre Pte Ltd. Singapore

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 ORGANIZATIONAL STRUCTURE
a) Organizational Hierarchy Chart

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b) Number of Employees

There are 1,150 employees working in Image Garments. Further details about the
employees are described as bellow.

Permanent Employees 250

Daily Wages Workers 900

-------------

Total 1,150

c) Main office

Image Garments (Pvt) Ltd

11 KM, Satiana Road,

Faisalabad, Punjab 38000,

Pakistan.

Phone

+92 (41) 877 9792

Fax

+92 (41) 877 9398

Email

sales@imagegarments.com

Website

www.imagegarments.com

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d) Introduction of all the departments

Managements of Image Garments (Pvt) Ltd understand the worth of specialization and
division of work, so a number of departments have been established to cope with
changing and competitive environment. These departments are illustrated below:

1. Customer Services
2. Industrial Engineering Department
3. Costing and Budgeting
4. Production Planning and Co-ordination
5. Purchase Department
6. Inventory Department
7. Quality Control and inspection department
8. Processing Department
9. Cutting and Embellishment Department
10. Stitching Department
11. Packing Department
12. Shipping Department
13. Export Department
14. Finance & Accounts Department
15. IT Department
16. Marketing Department
17. Administration and Human Resource Management Department

Functionalities and responsibilities of the afore said departments are briefed hereunder

1. Customer Services Department;

Effective coordination and Communication with customers is a key feature to get

customer satisfaction. Considering the need of competent and effectual customer services
department to improve liaison with customer, customer services department has been
instigated. Merchandisers are hired to take customer orders and get final the deal.

Merchandisers are allowed to fix the terms and conditions of contracts. Cost Sheet for
each order is prepared prior to offering of unit price to customer. This cost sheet is

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validated by Costing and Budgeting department. Also it is in the job description of
merchandisers to update the customers regarding the Status of orders. After booking of
orders in System merchandisers coordinate with PPC department regarding the specs of
orders and tentative date at which order is require to be shipped.

2. Industrial Engineering Department

Industrial Engineering department mainly working on variable involved in production
and ensure the compliance of performance standards. It is working on determining on
SAM (Standard allowed minutes) based rate for piece rate and ensure that rate approved
in system is reconcile with SAM based rate. It also ensures that machines are in working
conditions and get ready for use in production. It also ensures that target assigned to unit
is completed on time or not, if not then find out the root and take remedial action to fix
the issue.
3. Costing and Budgeting Department
Budgeting is a tool which helps the management in ensuring of its business Objectives.
Based on past performances and experience Key Performance Indicators are defined by
budgeting department which are used in evaluation of department performance. In Image
Garments main responsibilities of budgeting department involved validating of cost sheet
prepared by merchandiser, making budgets of order received, presentation of final budget
analysis to Board of Management after shipping of order and making of monthly
departmental budgets to control expenses.
4. Production Planning and Co-ordination (PPC);

Production, Planning and Control Department helps the organization to make effective
use of production facilities towards the right direction, in given period of time.

PPC department has been subdivided into two divisions,

♦ Production Planning

♦ Control

The PPC department gets Purchase Orders from merchandisers and performs making of
‘Bills of Materials (BOM)’ and Planning against such orders.

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 5. Purchase Department

Purchasing department is indirectly attached with production department. Production

department requires production material and accessories, therefore it raises demands /
requisitions of materials and accessories purchase to Purchase department. The purchase
department receives those requisitions and call quotations from market and issue
Purchase Orders to selected vendors. Vendors provide the agreed Quantity on agreed rate
by keeping the levels of quality, as per Purchase Orders.

6. Inventory Department
The Inventory Department keeps the track of stock on hand and orders the necessary
items to restock, through the purchasing department.

The Inventory Department of Image Garments is under the Finance Department. In

Inventory Department following are the different types of stores at Image Garments;

• Main Store (General Items)

• Accessories Store

• Fabric Stores

• Shipment Store

• Leftover & Rejection Store

7. Quality Control and Inspection Department

Quality may be defined as the set and required parameters by the customers. It is quite
difficult task to fulfill the customer requirements.

To assure this thing IMAGE GARMENTS has following 2 departments;

i. Quality Control Department

This department behaves like an agent for Image Garments side, which checks the
required parameters and recommends solution at each level of process.

It has two sections,

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 • Grey section -- It checks the fabrics for faults, attaches barcodes and clearance.

• Inline section -- It checks the finished and dyed fabric for faults.

ii. Quality Assurance Department

This department behaves like an agent for customer side, which audits the QC checked
fabric and give positive or negative opinion whether the fabric is according to customer
requirements or not.

8. Processing Department

Processing Unit of Image Garments (Pvt) Ltd has a paramount importance because it
actually provide the finish fabric product which is sent to customer as made up after
converting the fabric into the required stitched product. The processing unit of Image
Garments comprises of the following departments;

• Knitting Department

• Bleaching Department

• Finishing Department

• Printing Department

• Dyeing Department

• Folding Department

• Quality Control Lab

• Digital Design Studio & Embroidery Department

• Sample Room

9. Cutting and Embellishment Department

Fabrics are cut according to the requirement of the end customers with the help of man
power as well as lasted automatic cutting machines of GGT and Glummer which are
computerized and just the design of cutting is fed in the computer and automatic cutting
starts.

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 10. Stitching Department

In stitching department, the garments have been stitched in the different shapes, like as;

• EMB / Pockets

• Placket

• Collar/ Collar Closing / Labels

• Shoulder (Left)

• Arm Hole (Left)

• Sleeve Hem (Left)

• Side Seam (Left)

• Side vent (Left)

• Care Label Placement

• Bottom Hem

• Side vent (right)

• Side Seam (right)

• Sleeve Hem (right)

• Arm Hole (right)

• Shoulder (right)

11. Packing Department

Packing is the process by which garments dispatched for the shipment as per
requirements of the buyers.

At Image Garments, there are two major types of packaging;

i. Solid packing:

In which, organization used the same size and colors of garments in one poly bag.

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 ii. Assorted packing:

In which, organization not used the same size and colors of garments in one poly bag.

12. Shipping Department

At Image Garments, Shipping department is performing two functions

• Ware House.

• Maid-Up Dispatch

Shipping department is responsible to dispatch all types of Export after packing. It

depends on the marketing department when it should be dispatched. The prime
responsibility of the shipping department is to make “maid-ups dispatch Report”.

Shipping Department has a continual liaison with Marketing Department and to fix
stickers according to the customer demand on the cartoons. The dispatch report also send
to the head office and as well as customer. Maximum container capacity is to six
containers per day.

13. Export Department

The export department of Image Garments is known as one of the best export
departments in the textile industry because of the commitment and dedication of
employees, the determination of work & the best management system.

The Export department is responsible for the export of Knit outerwear garments all over
the world. Therefore, this department has to fulfill all the legal requirements and prepare
important documents involved in the exports.

The Export department of Image Garments performs three major functions;

i. Shipment of Knit Outerwear Garments

After receiving packing list from shipping department, export departments starts its main
functions. It usually prepares the following documents to ensure the timely shipment;

• Letter of Credit (L/C)

• Bill of Exchange

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 • Commercial Invoice

• Export Declaration Form

• Certificate of Origin

• Packing List

• Customs Invoice

• Textile Declaration Form

• Inspection Certificate

• Shipping Bill/Bill of lodging/Air Way Bill

• Manufacture's Certificate

ii. Quota System

Most of the customers are American and U.S. Government allocate quota to third world.
Infect quota is a quantitative restriction and more than that can't be shipped to America
from a particular country 

iii. Claim for Rebates

Rebate is actually a "Duty Draw Backs". The duty which an importer pays to government
for the product that is re-exported after some process, then government pays back some
of its part. This pay back of duty is called rebate.

14. Finance & Accounts Department

The Accounts & Finance Department is responsible for various accounting activities
including the task of preparing the comprehensive annual finance report and the
compilation and development of the annual budget for the Image Garments

A Brief introduction of Accounts & Finance functions include:

• Provides financial support services to the entire organization.

• Provides timely and accurate financial reporting.

• Processes receivables, payables and payroll.

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 • Grant and intergovernmental revenue administration.

• Banking relations.

• Provides timely and accurate financial reporting.

• Processes receivables, payables and payroll.

• Grant and intergovernmental revenue administration.

• Banking relations.

• Debt service analysis and bond payments.

• Administration of special assessments.

• Risk management and loss control.

• Implementation of financial and internal controls.

15. IT Department

In Image Garments, Information Technology has been that much flourished that it will be
very difficult to survive for Image Garments without IT Department at this time. Image
Garments has an ERP environment, based on ERP Oracle E-Business Suite 11i.
Therefore, every department is interconnected with each other with the help of quality
integrated computerized system.

Moreover IT department has developed many oracle based system, which are as follows;

• Human Resource Management System (HRMS)

• Gate Automation System (GAS)

• Vehicle Management System (VMS)

• Inventory Management System (IMS)

• Waste and Leftover Management System (WMS)

• Employee Management System (EMS)

• Organizational Planning and Development (OPD)

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 16. Marketing Department

Marketing Department cannot be ignored in any organization because it holds the

position of heart & soul for that organization.

In the aforesaid context, Image Garments cannot ignore the essential importance of this
department. The Marketing manager with the coordination of Chief Executive and
Director marketing performs all the marketing activities. They not only promote their
department but also visit the foreign markets to search their new customers.

The personnel of marketing department perform the following tasks;

• Look overall problems of the departments and the problems faced by the
customers.

• Devises all the marketing related policies.

• Delights the customers by solving their problems.

• Co-ordinates with the merchandising department.

• Checks and observes all the activities of textile sectors especially keeping focus
on the competitor’s activities.

The marketing department with the help of customer services department makes it
possible that the order place by the customers should be completed within specified time.
The Image Garments sells the product with the brand name of its customers.

17. Administration and Human Resource Management Department

The Admin & HR Department in Image Garments (Pvt) Ltd is involved in following
different types of admin and human Resources development activities;

i. Recruitment

At Image Garments the recruitment is almost online, up to the middle level management
and has the following procedure;

§ Approved strength in each department

§ Invitation of vacant or new positions Applications

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 § Scrutinizing of Applications

§ Test including intelligence and aptitude tests

§ Interviews in panel form

ii. Training and Development

The training and development process of Image Garments is well-built and provided
following 2 types of trainings;

Indoor Training includes;

• Apprentices

• Trainee supervisors

• Trainee operators

• Trainee Engineers

• Management Trainees

• Trainee Officers

Outdoor Training includes;

• Training in Institutions

• Meetings and interviews

iii. Compensation

• Market Rates

• Overtime

• Incentives

• Vehicles

• Accommodation

iv. Rewards and Punishment

• Appreciation

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 • Cash Prizes

• Promotions

For Control Purposes, punishments are also prevailing for workers at Image Garments;

• Disciplinary Actions

• Show Cause Notice

• Suspension

• Termination

• Charge Sheet

• Fines

v. Performance Appraisals

Promotions at Image Garments have very fair methodology. Personality and job related
traits are evaluated at regular basis. Best performance results in good rewards.

vi. Employee Welfare

Employee benefits policies are being followed at Image Garments, which are as follows;

• Health Insurance

• Social Security

• 5% of profit

• Accommodation

• Transportation

• Canteen and Mess

• Leave Encashment

vii. Retiring and Termination

Gratuity and provident fund is being maintained for the retiring personals.

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e) Comments on the Image Garments’ Structure

Image Garments is a successful organization, where the all the departments are
interrelated and work together, in order to achieve the goals of the organization. Every
department deals with its own responsibilities and contributes in the strategic, tactical,
and operational planning of the business.

Today rapid emergence of technology played a vital role in the efficiency and
effectiveness of the business. The ‘Technology’ replaced the manual power and probably
plays a major role to enhance and expand the business. In order to achieve the levels of
technology and keep itself in the race of progress, Image Garments acquire the ERP
Oracle E-Business Suite 11i.

The major function of this organization to deals with knit outerwear garments and
contributes the incurable part in the Pakistan exports and economy. Image garments uses
high technology in the all departments particularly in dying, printing, bleaching, and
finishing departments. They have skilled and professional workers who are well aware of
their functions.

In this era of technology, the “Information” is the key to success in the business. This
means that the successful businessman will be who will have the right information at the
right time. This comment leads to the conclusion that entity is lacking in proper
communication between departments, thus the Information Sharing Process should really
be improved at Image Garments (Pvt) Ltd.

Moreover, in my 7 weeks tenure, I came to know that there is no quantifiable method or

techniques which can measure our problems that organization faces.

The overall analysis is indicating that the company’s progress has mainly attained
through dedication of employees. The effectiveness of its management, their willingness
to take advantage of opportunities and face challenges of changing economic picture, this
all contributes to the very much improved and sound position of company. This is really
appreciable for the devotion and hard work of all the employees of the company.

25| P a g e
 PLAN OF MY INTERNSHIP PROGRAM
a. A brief introduction of the branch where I did my internship

I have performed my internship in main office of Image Garments (Pvt) Ltd, situated at
11 Km Satiana Road, Faisalabad, Pakistan.

Image Garments is basically a manufcturer of quality Polo Shirts, T-Shirts & Sweat
Shirts and registered as a leading exporter of Knit outerwear goods in Pakistan
established by Mian. Qamar Aftab in 1985.

Image garments is leader in creating, developing and manufacturing of knitted apparel

outerwear products right from basic to highly fashioned garments thus responding to
emerging trends in the industry. It translates conceptual ideas of customers into reality
and shapes them through our technical bent and professional acumen.

Image Garments is adhering with intrinsic values of commitment, integrity, innovation

and rapid services from last 25 years and supplying its quality products to major
European and American importers, wholesalers and retail chain stores.

b. Starting and Ending dates of my Internship

The time duration of my internship at Image Garments (Pvt) Ltd is 7 weeks.

• Starting date of my Internship is April 12, 2010, and

• Ending date of my Internship is May 31, 2010.

c. Names of the departments in which I got training and the duration of training

During my internship at Image Garments, I have got training in the following

departments;

• Purchase Department.

• Operations and Inventory Department.

• Finance & Accounts Department.

In order to gain the successful experience of Finance & Accounts Department (as my
specialization subject), I want to have a complete knowledge of works performed by
other departments, which based/initiate the working activities of Finance & Accounts

26| P a g e
department. Therefore, I have started my training from Purchase Department.
Subsequently, I have trained in Production and Inventory departments. Finally, I have
completed my training in Finance & Accounts Department.

Duration of Training

The duration of my training at Image Garments (Pvt) Ltd is as follows;

Time Duration
Sr. # Name of Department
Days From (Dates) To (Dates)

April 12, April 23,

1 Purchase Department 12
2010 2010

Operations and Inventory April 24,

2 16 May 09, 2010
Department 2010

3 Finance & Accounts Department 22 May 10, 2010 May 31, 2010

27| P a g e
 TRAINING PROGRAM
a. Detailed description of the operations / activities performed by the department(s) I
worked in.

Every successful organization uses different departments to fulfill its tasks and functions
with the coordination of work force, technology and available resources. These all
departments interlinked with each other with their particular responsibilities and make
their required contribution in achievement of organization goals and objectives.

In the context of aforesaid statement, Image Garments also have a conventional

organizational structure. Following is the detailed description of the operations / activities
of the departments, I worked in;

A. PURCHASE DEPARTMENT

Purchasing department is indirectly attached with production department. Production

department requires production material and accessories, therefore it raises demands /
requisitions of materials and accessories purchase to Purchase department. The purchase
department receives those requisitions and call quotations from market and issue
Purchase Orders to selected vendors. Vendors provide the agreed Quantity on agreed rate
by keeping the levels of quality, as per Purchase Orders. Following activities have been
performed at Purchase department;

• Take quotations from different suppliers in the market with respect to orders
requisitions and submit the same to CEO for approval.
• Making of “Blanket Purchase Agreements” and “Purchase Orders” in Oracle E-
Business Suite 11i, by taking the rate, quality and Source mentioned on approved
comparative statements.
• Checking of Planning “Need by Dates” in Oracle planning system with respect to
Requisition for making the aforesaid PO.
• Verification of ‘Quantity of items’ calculated by ERP against Orders and
requisition.

• Initiate the Purchase order in the Approval hierarchy of Purchase Order, in Oracle E-
Business suite.

28| P a g e
 B. FINANCE DEPARTMENT

The Finance Department of Image Garments plays a vital role in managing the
transactions and allocation of resources. The Finance Department is further divided into 3
segments on the basis of their respective core activities.

i. Finance Department

ii. Accounts Department

iii. Costing and Budgeting Department

The details of operations / activities of each section are as follows;

i. Finance Department

In every organizing, Finance department considers as the pillar of the organization.

Therefore, it requires an effective control and financial information system, to track down
the Cash inflows, Cash outflows, Control uncertainties, Investments and their respective
evaluations.

Keeping in view the aforesaid areas, the Image Garments have well skilled & trained
professionals as well as quality Information System (ERP Oracle E-Business Suite 11i),
which helps the organization to enhance its efficiency.

Following are the activities performed by the Financial Department at Image Garments
(Pvt) Ltd;

• Estimation of the Business Prospects

• Developing Budgets with the help of other divisions of the business as well as the
higher authority

• Short and long term Collections

• Short and long term Payments

• Calculations of markup on Financings.

• Review of Lease Installments schedules.

• Analysis of Risk and Returns on Investments.

29| P a g e
 • Management of Taxation.

• Debtors & Creditors Ageing Analysis.

Financial department starts its process with evaluation of business, financial position and
encounter that long and short term receipts and payments.

ii. Accounts Department

The Accounts Department is responsible for various accounting activities including the
task of preparing the comprehensive monthly, quarterly and annually Financial
Statements.

Following activities have been performed by Accounts Department at Image Garments;

• Verify the Monthly Stock Taking Reports

• Checking Over time Detail sheet & Payment sheets

• Checking Security staff Over Time

• Checking of New Appointment, Missing Days, Reinstate, Arrears Bills

• Checking of Daily Wages Bills

• Checking of Final Dues

• Checking Leave Encashment

• Checking Contract Wages sheets (Twice in a Month)

• Checking Incentive Payment sheets (Twice in a Month)

• Checking of Extra Payment sheets

• Checking the ‘overview’, ‘distribution accounting’ and ‘Status of payments’.

• Checking of Prepayments and advances made, through a defined mechanism,

properly documented and followed by the finance department.

• Verification of the Approval hierarchy of Invoices.

• All kind of Gate passes Receive Reconcile Maintain & send to Head Office.

30| P a g e
 • Preparation and Verification of Vouchers on Daily Basis & Prepare Expense
Detail Summary

• Prepare & Verify the Utility Bills (Electric, Telephone, Sui Gas)

• Verify the Monthly Voucher’s of Contract Vehicle, Photocopier, Subsidiaries

• Verify the Fuel & Maintenance Bills, Mobile Bills.

• Prepare the Assets Detail Time to Time.

• Prepare the Over Head Detail & Salary Comparison.

• Maintain of All kind of Record in Files for Audit.

• Preparation and Checking of Final Settlements.

• Verification of GRN and receipt against Invoices.

iii. Costing & Budgeting Department

Budgeting is a tool which helps the management in ensuring of its business Objectives.
Based on past performances and experience Key Performance Indicators are defined by
budgeting department which are used in evaluation of department performance. In Image
Garments main responsibilities of budgeting department involved validating of cost sheet
prepared by merchandiser, making budgets of order received, presentation of final budget
analysis to Board of Management after shipping of order and making of monthly
departmental budgets to control expenses.

C. OPERATIONS & INVENTORY DEPARTMENT

OPERATIONS DEPARTMENT

Operations department of Image Garments is subdivided in to two departments

1. Production Department

2. Processing Department

The detailed activities of aforesaid departments are as follows;

31| P a g e
1. Production Department

i. Production, Planning and Control Department (PPC)

Production, Planning and Control Department helps the organization to make effective
use of production facilities towards the right direction, in given period of time.

PPC department has been subdivided into three divisions,

♦ Production Planning

♦ Control

♦ Yarn

The PPC department gets Purchase Orders from merchandisers and performs making of
‘Bills of Materials (BOM)’ and Planning against such orders. As the PPC is involved at
each level of Purchase Order, therefore, the activities of PPC department is segregate in 3
divisions, which are as follows;

• Planning

This division plans the whole Po with order specifications, work schedule, time line for
knitting, dyeing (Lot Making), finishing and up till dispatching of fabric to customer
(Apparel Division).

• Control

This division actually looks after the PO time line execution for in time production and
dispatching to customer. Many people name this division as Peechay Peechay Challo
(PPC) due to its involvement in PO.

• Yarn

This division makes the availability of yarn in time before knitting gets started.

ii. Fabric:

Image Garments obtains following types of Fabrics after processing the fibers and threads
from outsourcing;

32| P a g e
Types of Fabric:

a) Jersey

• Single Jersey

• Heavy Jersey

• Bird eye Jersey

• Striper Jersey

• Lycra Jersey

• Seeded Jersey

• Printed Jersey

b) Pique

• Pique Locust

• POP – Corn Pique

• Honey Combed Pique

• Mesh Pique

c) Inter Lock

• Simple interlock

• Sueded interlock

d) Rib

• Rib 1*1

• Rib 2*2

• Rib 11*1

• Rib 15*1

e) Fleece

• Fleece

33| P a g e
 • Sueded Fleece

f) Terry

• Brushed Terry

• French Terry

• Baby Terry

iii. Cutting:

PPC department (Production, planning and control) issues requisition to cutting

department. The cutting department takes the fabric from folding department and cuts the
fabric according to the specifications & need. Before cutting, the Cutting Manager checks
ply to ply shade. Moreover, he cuts out continuity and make mock up for approval shade
of trims. Fabric cutting manager checks marker species and shape of lay. Later on, group
members of cutting department arrange shape of lay in the bundles and record the same
in the job cards.

From the cutting department the fabric is transferred to the store from where the fabric is
issued on the required floor.

The objectives of cutting department are as follows;

• Quality control

• Cutting

• Minimize Wastage

iv. Induction:

After cutting department fabric comes in induction department. In induction department

fabric pieces are arranged in sizes, colors and Purchase Order wise.

Induction department is the responsible of the quantities, maintain, balance of receiving

from the cutting department. Others responsibly of the induction department is issues the
particular quantities to stitching department for furthers operations.

34| P a g e
 v. Stitching:

Stitching department is one of the well equipped machines departments in the field of the
Textile in Pakistan that’s why there are most of the loyal customers of the Image
Garments from all over the world especially American eagle, Converse and Tommy
Hilfiger.

The stitching department consists of 524 helpers on daily wages working in the whole
stitching department and having 400 stitching machines. Every machine operator has a
unique no to find out the any type of the fault.

The objectives of the stitching department are

• The cost minimization and

• To minimize wastage

• Best utilization of time

• Quality control by line checker

Following are the specification of fabric pieces which are stitched at Image garments;

• EMB / Pockets

• Placket

• Collar/ Collar Closing / Labels

• Shoulder (Left)

• Arm Hole (Left)

• Sleeve Hem (Left)

• Side Seam (Left)

• Side vent (Left)

• Care Label Placement

• Bottom Hem

• Side vent (right)

35| P a g e
 • Side Seam (right)

• Sleeve Hem (right)

• Arm Hole (right)

• Shoulder (right)

The Machines available in stitching department of Image Garments are as follows;

1. Over Lock

2. Flat Lock

Over Lock

Single Needle Single Needle Double Needle Double Needle Elastic Attach
2 Threads 3 Threads 4 Threads Puller Bikini

Flat Lock

Cylinder Bed Mini Cylinder Flat Seaming Feedo Flat Bed 4 Needles Body Hem
5 Threads 5 Threads 5 & 6 Threads 6 Threads 5 Threads

Flat Bed Multi Needles

Puller Attach Manual
Elastic Attach (6T, 4N)

Feed of the Arm (inseam + Flat seam) Tap Attach Auto Trimmer
Cutter

36| P a g e
 Lock Stitch Others

Single Needle Bartake Button Hole Button Attach

Double Needle Zig - Zag
2 Threads
4 Threads 2 Threads

vi. Packing:

Packing is the process by which garments dispatched for the shipment on the requirement
of buyers.

At Image Garments following two types of packaging;

• Solid packing -- In which organization uses the same size and colors of garments
in one poly bag.

• Assorted packing -- In which organization not used the same size and colors of
garments in one poly bag.

Image Garments follow the packing instructions provided by the buyers. Such
instructions are as follows;

• Colors

• Size

• Fold size

• Insert board

• Upc sticker

• Pcs/pack

• Poly bag

• Master poly bags

• Pcs/carton

• Size sticker

37| P a g e
 • Baler bag sticker

• Carton sticker

• Magic tape solo tape

vii. Shipping Department

At Image Garments, Shipping department is performing two functions

• Ware House.

• Maid-Up Dispatch

Shipping department is responsible to dispatch all types of Export after packing. It

depends on the marketing department when it should be dispatched. The prime
responsibility of the shipping department is to make “maid-ups dispatch Report”.

Shipping Department has a continual liaison with Marketing Department and to fix
stickers according to the customer demand on the cartoons. The dispatch report also send
to the head office and as well as customer. Maximum container capacity is to six
containers per day.

2. Processing Department

Processing Unit of Image Garments (Pvt) Ltd has a paramount importance because it
actually provide the finish fabric product which is sent to customer as made up after
converting the fabric into the required stitched product.

Image Garments obtains all Processing services from Outsourcing. Following are the
outsourcing departments from which Image garments obtains services;

• Knitting Department

• Digital Design Studio

• Bleaching Department

• Printing Department

• Dyeing Department

• Finishing Department & Folding Department

38| P a g e
 INVENTORY DEPARTMENT

The Inventory Department is also under the Finance Department. There are different
types of stores given below: - Main Store (General Items)

i. Accessories Store

ii. Fabric Stores

iii. Shipment Store

iv. Leftover & Rejection Store

The detail of important stores is given below;

Main Store

Fabric Accessories Shipping Rejection

Store Store Store Store

i. Fabric Store

PO wise fabric comes from the outsourcing units, according to the purchase order.
Fabrics issued towards cutting depart on requisition.

ii. Accessories Store

Accessories store provided the accessories like Thread, labels, Buttons, Ploy bags and
stickers on the requisitions from departments.

iii. Shipping Store

After completing the Garments for the export purpose is sent to the shipping store.

iv. Leftover & Rejection Store

All the waste and rejected pieces are sent to rejection store.

Moreover, Image Garments has strong inventory management system (IMS) which is
divided in following two sections;

39| P a g e
 i) General

All the things not directly related to the production but are necessary or supporting to the
production, i.e. Mobiles, computers, stationary, Air Conditioners, Electric Generators,
Furniture and Fixture etc.

ii) Accessories

All the things that are related to the production and are directly used in producing the
finished products are kept in accessories division i.e. Buttons, stitching thread, inlay
cards, labels, poly bags etc.

Working of Store

The working at store consists of following three divisions: -

i) Counting

When Image Garments purchase any thing from the market the buyer often delivered it to
main stores. After checking of security the Inward Gate Pass (IGP) is prepared and is
forwarded to the counting section. Afterward, all the purchased material is send to the
quality section from store.

ii) Quality

Quality section is responsible for the quality of the goods purchased. If the goods relate to
general division than the person who has ordered it, verified the quality of such goods
and if the good relate to accessory division, Image Garments quality assurance team
checks the quality of such goods very carefully. If the quality of the good is up to the
mark than the good is forward to the store department otherwise it is rejected.

iii) Store

Store is responsible for stocking the goods & accessories and further issues, if the
demand is made by any authorized person. It is a complete system to stock and manage
all the accessories. After receiving the Goods Received Note (GRN) from the ‘quality &
quantity section’ the staff of store verifies quantity of that good once again physically. If
the quantity of the accessory found complete, they stock it, in specific rack and records
the same.

40| P a g e
b. Detailed description of the tasks assigned to me.

During my Internship at Image Garments (Pvt) Ltd, I have been assigned following tasks
to be performed in different departments;

Purchase Department

In Purchase Department, I have assigned the following tasks to perform;

1. Take quotations from different suppliers in the market with respect to orders
requisitions and submit the same to CEO for approval.
2. Making of “Blanket Purchase Agreements” and “Purchase Orders” in Oracle
E-Business Suite 11i, by taking the rate, quality and Source mentioned on
approved comparative statements.
3. Checking of Planning “Need by Dates” in Oracle planning system with
respect to Requisition for making the aforesaid PO.
4. Verification of ‘Quantity of items’ calculated by ERP against Orders and
requisition.

5. Initiate the Purchase order in the Approval hierarchy of Purchase Order, in

Oracle E-Business suite.

Operations & Inventory Department

In Operations Department, I have assigned the following tasks to perform;

1. I assisted the Asst. Manager Accounts to view the Order wise and date wise
planning of “Dyeing for Lot making” and meeting with Manger Fabric &
Knitting in respect of new orders.
2. I have assisted the Asst. Manager Dyeing in dispatching the lots to dyers and
view report of “Job remaining quantity”. This practice adds more values to my
professional knowledge.
3. Conduct surprise checking of dyeing house to check the production process
with Assistant Manager Dyeing.
4. I attended meetings along with Fabric manager to discuss the planning of
fabric lots with PPC manager and update the GM operation regarding the
status of fabric requirement of order.

41| P a g e
I have been assigned the following tasks to perform in Inventory Department;

1. Physically inspect and count the stocks on hand, maintain stock records and
reconciled accordingly.

2. Issuance of accessories to various departments on approved requisitions.

3. Making of ‘Goods Received Notes’ in system on arrival of goods at store after

inspection.

4. Assist the Manager Inventory in calculation of EOQ, Safety level, Danger

level annual carrying and ordering costs etc.

Finance & Accounts Department

In Finance & Accounts Department, I have assigned the following tasks to perform;

• Checking of Purchase orders quantity and rates with respect to Invoices from
Suppliers.

• Checking of ‘Receipt of Items’ against Purchase orders before making the

voucher in system.

• Making of Payables, Payments, Receipts, Journal Vouchers and adjustment

vouchers in system.

• Segregate the transactions accordance with their nature.

• Choosing of right charge Account for the purchase of materials, assets, liabilities,
expenses and revenues.

• Analysis of transactions, policies adopted according to the business.

• Analysis of Accounts Payable ageing.

• Analysis of Accounts Receivables ageing.

• Perform bank reconciliations with Asst. Manager AR.

• Assist Manager Accounts in making of monthly Financial Statements.

• I made ratios analysis and interpret results.

42| P a g e
 • Preparation of Pre and Post shipment costing.

• Collection from Accounts Receivables.

• Payments to Accounts Payables

• Following the Standard Operating Procedures and Accounting policies.

Moreover, I also have assigned the manual checking/verification of the following;

• Manual checking of ‘Cash payment Receipts (Vouchers)’ with “ERP generated

Cash Remittance Advice”

• Verification of serial numbers of Cheques that new Cheque Books have been
properly entered in the ERP Accounts Payable module.

• Verification of Cheques with the system generated ‘Cheques Remittance Report’

that all the Cheques are prepared as per requirement and with same amounts as
vouched in system.

• Employees Salary Sheets, Withholding tax calculations, EOBI Calculations,

Social Security deduction,

• Worker’s Wages Sheet,

• Vehicle Readings of employees,

• Transportation Bills of employees

• DHL and OCS Bills’ verification for each document and parcel

• Provident fund part payments

• Markup payments,

• Purchase of Estate installments bills

• Overtime sheets and Debit Notes

• Cash Bills.

43| P a g e
 STRUCTURE OF FINANCE DEPARTMENT
a. Finance Department Hierarchy

b. Number of Employees working in Finance Department

There are 12 employees in numbers, working in Finance Department of Image Garments.

44| P a g e
 c. Finance & Accounts Operations

The Finance & Accounts department of Image Garments consists of professionals’ team,
which regularly review the company's requirements and converts their personal skills into
efforts to continually improve the financial position & performance of the company.

The team of Financial & Accounts department endeavors to build a working environment
through effective management practices and creative ideas. It enables the management to
make successful use of financial resources and human capabilities to serve customers
better.

The team of Finance & Accounts department consists on following personnel;

• Chief Executive (CEO),

• Chief Finance Officer (CFO),

• Manager Export,

• Manager Accounts,

• Manager Costing & Budgeting

• Asst. Manager Taxation,

• Asst. Manager Accounts AP (Accounts Payables),

• Asst. Manager Accounts AR (Accounts Receivables),

• Asst. Manager Exports

• Officer Costing Budgeting

• Officer AR, and

• Cashiers.

45| P a g e
 FUNCTIONS OF FINANCE DEPARTMENT
a. Accounting System of the Image Garments

Image Garments using the ERP Oracle E-Business Suite 11i to maintain its record and
developing the financial information. Here the management is developing its financial
statements according to the GAAP. All procedures of accounting department are
maintained with prescribed format. Management has defined accounting system to
recognize, evaluate and record the all monetary transactions to fulfill, not only the
internal requirements but also the external stake holder’s needs of information, for their
decision making.

All activities of accounting department are based on authenticity and deficiency. Every
transaction all monetary action is verified very strictly before taking them into account.

Image Garments maintains accounting transaction separately in the following ERP

accounting Modules;

• Accounts Receivable Module

• Accounts Payable Module

• Fixed Assets Module

• Exports Management Module

• Taxations Management Module

• General Ledger

b. Finance System of the Image Garments

Tracking your company's financial information is key to success. The fast pace of today's
business environment makes it absolutely essential to get your finance and accounting
department automated quickly and easily. Being able to produce comprehensive and
tailored financial reports and balance sheets will allow you to track your revenue and
expenses and see at a glance where you need to trim costs and increase revenue in order
to improve profitability and meet your financial objectives.

46| P a g e
In this context, the Finance system consider as the pillar of the organization. Finance is
the back bone of any new and prevailing business. Financial Management system comes
across different financial activities and the allocation of finance for operation of business.

Financial department starts its process with evaluation of business, financial position and
encounter the long and short term receipts and payments. Financial activities and
functions of the Image Garments include the following;

• Short term receipts

• Cash sales

• Collection from creditors

• Short term loans

• Short term Payments

• Creditors

• Employee salaries and wages

• Utility bills

• General expense

• Long term receipts

• Long term bank loan

• Retained earnings

• Pre payment from customers

• Long term payments

• Investments

• Capital investments

• Long term liabilities

47| P a g e
 c. Use of electronic data in decision making

Information system is the fundamental system of any organization which consists of

connective data of all the departments. All the activities of major departments
(production, finance, accounting, marketing, Admin & HR) of Image Garments are
collected in one Information system, which helps the managers for decision making.

These days we are living in technology age despite of Stone Age although the technology
affects the internal work of organization as well as external work. Rapidly emergence of
technology increased the reliability of business world on effective Information systems.

Information system is used by top management inform them about strength to weakness
and opportunity to threat of the organization.

The Information system of Image Garments provides the answers of following CEO
questions;

What is the over all position of company?

What is the financial position?

What is the recruiting and staffing rate in organization?

What is technical competency of staff?

At what place we stand in the market?

How do we consider our technicality and competency among our competitors?

What can be our future planning?

What strategies our company will adopt in future?

Information system totally facilitate over top level management as well as middle level
management. It provides capital working structure, revenue and financial capability of
previous and current years, worth, good will and operating activities of the organization.
Each and every recorded is on information system and provide help the management to
take quick but effective decision making.

48| P a g e
 d. Sources of funds

Finance is the backbone of any organization company used in different means for the
allocation of funds to run the business as well as to avoid deficit. There are conventional
method which are used for the generation of financial resource are given below;

The main source, to finance the operational activities is the reserves of the company
maintained. The second biggest source of fund is by taking advance from the customers.
Textile funds are running short of funds then the requirement is met by taking loans from
the banks. Personal loans are also generated from family and friends support to business.

Owner's Capital

Owner’s capital is one of the significant tools of business finance. Our organization uses
owner’s capital to fulfill the business activities and to run the smooth operations of the
business.

Retained Profit / Reserves

Retained profit is shown as reserves on a Balance Sheet and play a vital role as source of
funds.

Advances from customers

Another biggest source of fund is taking advance from the customers.

Financing from Banks

Image Garments also includes the following sources as well;

Bank Loan, Leasing, Hire Purchase, Buying on Credit, Selling Assets, Debtors and
Factoring.

e. Allocation of funds

Image Garments allocates its resources mostly on arranging the production of goods
against customer orders and proper functioning of its departments.

49| P a g e
 CRITICAL ANALYSIS
a. Financial Analysis

i. Ratio Analysis

Liquidity Ratios

Year Name Formula Calculations Ratios Interpretation

This ratio is used to determine the
short-term liquidity position of an
202,441,171 /
2007 1.001 entity (1:1). This ratio shows that the
202,186,102
entity has Rs 1 current assets to pay
Rs. 1 of its current liabilities.
Current Current asset/ current Ratio in 2008 has increased by 0.260;
261,133,304 /
2008 Ratio liabilities 1.260 .it means that company is utilizing its
254,490,029
resources more effectively.
Ratio in 2009 has decreased by 0.257
300,736,975/ than 2008. But still entity has Rs 1
2009 1.003
299,591,370 current assets to pay Rs. 1 of its
current liabilities.
This ratio is used to ascertain the
more clear liquidity position of an
(202,441,171 entity because it excludes the
– inventory. The ratio of 0.296 indicates
2007 0.296
142,541,548) / that the liquidity position is not good
202,186,102 since entity has only Rs. 0.2962 of
quick assets to pay its Rs. 1 current
Current Asset- liability.
Acid Test
Inventory/
Ratio
Current liabilities (261,133,304 - Acid Test Ratio in this year has
2008 157,281,404) / 0.408 increased by 0.112, this might be
254,490,029 because of control over inventory

(300,736,975 Acid Test Ratio in this year has

– decreased by 0.034 this shows that
2009 0.374
188,670,923)/ company loosing control over its
299,591,370 inventory.
This ratio shows the amount of cash
required to maintain a certain level of
233,091,512 / 914.83
2007 sales. This high ratio indicates
255,069 Times
inadequate working capital, which
reflects negativity on liquidity.
Sales to
Sales to working capital ratio of 58.17
Working Sales / working capital 386,479,278/ 58.17
2008 times means the company has
Capital 6,643,275 times
performed very well during this year
Sales to working capital ratio of
382,052,131/ 333.49 333.49 times means the company has
2009
1,145,605 times performed well in 2009 compare to
2007 but not as well as 2008.
Working capital is a financial metric,
Working Current assets – current 202,441,171 – which represents operating liquidity,
2007 255,069
capital liabilities 202,186,102 available to a business. The company
has low amount of working capital to

50| P a g e
 finance its operations.

In 2008 company working capital has

261,133,304 -
2008 6,643,275 increased than 2007 to finance its
254,490,029
operations.
Working capital has been decreased in
300,736,975 -
2008 1,145,605 2009 with respect to 2008 but fair
299,591,370
enough than 2007.

Leverage Ratios

Year Name Formula Calculations Ratios Interpretation

A metric used to measure a
company's financial risk by
determining how much of the
(95,169,800 +
company's assets have been
2007 3,331,333) / 33.68%
financed by debt. It indicates that
292,497,874
33.68% of the company’s total
Total Debt / assets are financed through the
Debt Ratio debts of the company.
Total Assets
118,514,985 / This the ratio has improved, as
2008 28.95%
409,344,452 compared to last year.

142,662,252/ 31.00% The ratio is improved than year

2009
460,212,611 2007 but less than year 2008

This ratio is a measure of the

proportion of equity versus debt
that is used to finance different
216,455,116 /
2007 3.45 portions of the company's
62,678,546
operations. It shows that
Total company debts are 3.45 times of
Debt / Equity
liabilities / company’s own equity.
Ratio
Equity The ratio has improved as
268,398,516 /
2008 3.53 compared to last year, although
76,135,402
the position is still worst.
The ratio has improved as
311,367,743/
2009 3.70 compared to 2008; as a result, the
84,271,795
position is getting worst.
This ratio is used to ascertain the
(95,169,800 + debt capacity of the firm and its
2007 Debt to 3,331,333)/ 1.22 collateral for loans. It shows that
Total Debt / 80,549,560 company total debts 1.22 times
Tangible Net
Tangible compared to the tangible assets.
worth Ratio
Assets
118,514,985 / The ratio has improved in 2008
2008 0.82
145,039,055 as compared to last year.

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 142,662,252/ The ratio has improved than 2007
2009 0.92
155,487,943 but decreased than year 2008.

The working capital running

2007 255,069/28,700,000 0.89% operations is a small in portion to
Current Net Worth.
Current worth Worth(CA- In this year the working capital
2008 / net worth CL) /net 6,643,275/49,700,000 13.37% has been increase with respect to
ratio worth(Owner' 2007
s Capital) The working capital of this year
2009 1,145,605/49,700,000 2.31% is slightly decrease compared to
2008.
2007 - - -
Total long term
2008 capitalization debt / total - - -
ratio capital
2009 - - -

Moderate return on fixed asset is

(7,641,468/80,549,560)
2007 32.63% better than previous year equity
/29.07%
investment.

Return on fixed asset is better

Fixed asset (net profit /
(13,193,010/145,039,0 than previous year equity
2008 ratio / equity fixed assets)/ 18.70%
55)/48.65% investment. Due to better
ratio ( debt/equity)
utilization of resources.
Return on fixed asset is better
(7,898,932/155,487,94 than previous year equity
2009 8.72%
3)/ 58.28% investment. Due to better
utilization of resources.

Profitability Ratios

Year Name Formula Calculations Ratios Interpretation

The company has low NP
2007 7,641,468 / 233,091,512 3.28% margin due to heavy cost of
sales
Although the ratio has
Net Profit Net profit after
2008 13,193,010/386,479,278 3.41% improved , but the cost of
Margin tax / Net sales
sales is still an issue
The NP ratio has fall than
2009 7,898,932/382,052,131 2.07% previous year due to heavy
cost of sales
Return on total asset shows
2007 7,641,468 / 292,497,874 2.61% proper and effective
utilization of resources
Return on Net profit / total
Return on total asset has
assets assets
2008 13,193,010/409,344,452 3.22% improved with compare to
year 2007.
2009 7,898,932/460,212,611 1.72% Return on total asset has fall

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 with compare to year 2008 &
2007.
It measures how many
(7,641,468 / 233,091,512) * pounds were generated in
2007 0.0708
(233,091,512/292,497,874) sales for each single pound
invested in asset.
DuPont (Net income / net
Return on sales)*(sales / (13,193,010/386,479,278)* The ratio has been decreased
2008 0.0322
Assets total assets (386,479,278/409,344,452) than year 2007.
The ratio has been more
(7,898,932/382,052,131)*
2009 0.0172 decreased than year 2008 &
(382,052,131/460,212,611)
2007.
This ratio is widely used to
2007 27,738,349 / 233,091,512 11.90% evaluate a company's
Operational efficiency.
Operating
operating income The ratio has been decreased
2008 Income 40,966,280/386,479,278 10.60%
/ net sale than year 2007.
Margin
The ratio has been slightly
2009 39,336,659/382,052,131 10.30%
decreased than year 2008.
This ratio shows the increment
2007 255,069/292,497,874 0.0008 in the utilization of operating
assets.
Operating assets used to The ratio has been improved
2008 Assets create revenue / 6,643,275/409,344,452 0.0162 than 2007, which shows
Turnover total assets operating effectiveness.
The ratio has been fall in 2009
2009 1,145,605 /460,212,611 0.0025
compared to year 2008.

It measures efficiency and

evaluates that how effectively
2007 7,641,468/ 80,549,560 0.094
company utilizes its assets to
generate return on them.
Return on
Net profit / 13,193,010/ Company efficiently has
Operating
2008 Operating asset 145,039,055 0.091 slightly fallen for utilized its
Assets
assets with compare to 2007.
7,898,932/ Company The efficiency of
2009 155,487,943 0.051 utilization of company’s assets
have fall then 2008.
This shows how the company
0.80
2007 233,091,512 / 292,497,874 has utilized its fixed assets to
Time
generate sales
The company has more
Sales to
Sales / total fixed 2.66 efficiently utilized its fixed
2008 Fixed 386,479,278/145,039,055
assets Times assets to generate sales during
Assets
this year
The company has more
2.45
2009 382,052,131/155,487,943 efficiently utilized its fixed
Times
assets to generate sales during

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 this year but a slightly fall
than 2008.
This shows, how effectively
2007 9,848,249/ 62678546 0.1571 the company has used the
amount, invested in it.
17,034,598/
Return on Net profit before ROI has been increased than
2008 76,135,402 0.224
Investment tax / net worth the year 2007.
11,587,270/
ROI has been fallen than the
2009 84,271,795 0.137
year 2008.
It determines the rate of return
on the invested capital. It is
2007 9,848,249/ 62,678,546 15.71% used to compare investment in
the company against other
Return on
Net Income / investment opportunities.
Total
Owner’s Equity ROE has improved
2008 Equity 13,193,010/76,135,402 17.32%
significantly by 1.61%%
ROE has decreased compared
2009 7,898,932/84,271,795 9.37%
to year 2008
Gross profit margin indicates
how well the company can
2007 46,405,171 / 233,091,512 19.9%
generate a return at the gross
profit level.
Gross
Gross profit / There has been a mere
Profit
2008 Sales 72,995,301/386,479,278 18.89% decrease in this year than
Margin
2007.
There has been a slight
2009 75,258,973/382,052,131 19.70% improvement in this year
compared to year 2008

Activity Ratios

Year Name Formula Calculations Ratios Interpretation

It defines number of times
233,091,512 / account receivables collected
2007 12.79
18,219,244 or converted to cash during
the year.
Accounts The ratio has declined during
net sales/average 386,479,278 /
2008 Receivable 10.43 this year, due to long credit
account receivables 37,042,224
Turnover period offered
The ratio has declined by 2.65
382,052,131 / during this year compared to
2009 7.78
49,117,511 previous year 2008, due to
long credit period offered
It makes known to us that
Average 365 / Accounts
29 how much time will it take to
2007 collection Receivable 365/12.79
days collect all the accounts
period Turnover
receivables.

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 Collection period has increase
35
2008 365/ 10.43 than 2007 and shows softness
days
in credit policy
Collection period has more
47
2009 365 / 7.78 increase than 2008 and shows
days
softness in credit policy
It shows how many times in
118,606,478/ 1.19 accounting period the
2007
99,994,035 times company repays its accounts
Accounts Total payable to creditors
payable purchases/average 263,724,054 / This has also improved,
2.26
2008 turnover creditors 116,824,596 allowing better relations with
times
suppliers
270,802,521 / 1.90 This has slightly decrease with
2009
142,912,294 times compared to year 2008.
It represents the number of
307
2007 365/1.19 days in which Payments are
days
made to Creditors
This year the payment period
Average have been improved than 2007
2008 365/ Accounts 365/2.26 162 days
payment & allowed better working
payable turnover
period capital management
This year the payment period
192
2009 365/1.90 have been slightly increased
days
than 2008.
Higher Inventory turnover
186,686,341/ 1.57 ratio shows that the company
2007
118,790,418 times is selling its inventory very
quickly.
Inventory Cost of sales / 313,483,977 / This means the company is
2.09
2008 Turnover Average inventory 149,911,476 storing inventory for a shorter
times
period
This means the company is
306,793,158 / 1.77
2009 storing inventory for a shorter
172,976,164 times
period
This shows in how many days
232
2007 365/1.57 the company sells its
days
inventory.
The period of selling
Average age 365 / Inventory 175
2008 365/2.09 inventory have been
of Inventory Turnover ratio days
improved in 2008 than 2007.
The period of selling
206
2009 365/1.77 inventory have been slightly
days
increased in 2009 than 2008.
233,091,512/ It shows return on utilization
2007 80%
292,497,874 of total assets.
Total Asset Total Sales/ Total
Turnover Assets 386,479,278 / utilization of available
2008 409,344,452 94% resources from previous
period is increased by 14%

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 utilization of available
382,052,131 / 83%
2009 resources from previous
460,212,611
period is decreased by 11 %
Better utilization of fixed
233,091,512/ 2.89
2007 assets shows operating and
80,549,560 times
marketing strategy efficiency
Better utilization of fixed
386,479,278 / 2.66 assets from previous year
2008 Fixed assets Sales revenue /
145,039,055 times shows operating and
Turnover fixed assets
marketing strategy efficiency
Better utilization of fixed
382,052,131 / 2.46 assets from previous year
2009
155,487,943 times shows operating and
marketing strategy efficiency

Market Ratios

Year Name Formula Calculations Ratios Interpretation

2007
Dividend Per
2008 Image Garments is not a listed company so we can not calculate this Ratio.
Share
2009
Increase in earnings is due to proper
2007 7,641,468/287,000 26.63
utilization of owner’s equity.
Net profit /
Earning per The ratio for year 2008 is almost same
2008 number of 13,193,010 /497,000 26.54
Share as 2007.
shares
15.90 The ratio has been decrease in this year
2009 7,898,932 / 497,000
with compared to previous year.
2007
Price /
2008 Image Garments is not a listed company so we can not calculate this Ratio.
Earnings ratio
2009
2007 Percentage of
2008 Earnings Image Garments is not a listed company so we can not calculate this Ratio.
2009 Retained
2007
Dividend
2008 Image Garments is not a listed company so we can not calculate this Ratio.
Payout
2009
2007
2008 Dividend yield Image Garments is not a listed company so we can not calculate this Ratio.
2009
Increase in earnings enhances the
2007 62,678,546/287,000 218.40
shareholders trust on operations.
Shares holders
Book value per 153.19 The ratio has been decrease in this year
2008 equity/ average 76,135,402 / 497,000
share with compared to previous year.
no of shares
169.56 The ratio has been increase in this year
2009 84,271,795 / 497,000
with compared to previous year.

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 Cash Flow Ratios

Year Name Formula Calculations Ratios Interpretation

This ratio is used to determine

that how well traditional cash
flow covers the company's debt
18,272,970/
2007 0.172 principal payments due in the
Operating 106,191,825
next 12 months. It also indicates
Cash
Operating Cash if the company's cash flow can
Flow/Current
Flow/Current support additional debt
Maturities of
Maturities of Long In this year the operating cash flow
Long Term
Term Debt and Current 26,486,619 / has been decreased with compare to
2008 Debt and 0.197
Notes Payable 134,736,740 liabilities to be paid in next 12
Current
Notes Payable months.
In this year the operating cash flow
9,752,094 / has been decreased with compare to
2009 0.063
153,712,332 liabilities to be paid in next 12
months.
This ratio provides an indication
18,272,970/ of a company's ability to cover
2007 1.00
18,219,244 total debt with its yearly cash
flow from operations
Operating
Operating Cash Flow/ In this year the operating cash flow
Cash Flow/ 26,486,619 /
2008 Total Debt 0.715 has been decreased with compare to
Total Debt 37,042,224
total debts
In this year the operating cash flow
9,752,094 /
2009 0.199 has been decreased with compare to
49,117,511
total debts
This ratio is a useful measure for the
18,272,970/
2007 63.67 strength of a firm and the
287,000
sustainability of its business model.
Operating In this year the operating cash flow
Operating Cash Flow/ 26,486,619 /
2008 Cash Flow 53.293 has been decreased with compare to
Total Shares 497,000
per Share total shares
In this year the operating cash flow
9,752,094 /
2009 19.622 has been decreased with compare to
497,000
total shares

2007 Operating N/A N/A -

Cash flow/ Operating Cash Flow/
2008 Cash Cash Dividends N/A N/A -
Dividends
2008 N/A N/A -

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 ii. Horizontal Analysis

Image Garments Pvt. Ltd.

Horizontal Analysis

Balance sheet as on June 2007, 2008 and 2009

(2009-Base ((2008-Base
Particulars
(Base Year) year) year)

ASSETS 2009 2008 2007 Difference % Difference %

Long Term Assets

Operating Assets 155,487,943 145,039,055 80,549,560 74,938,383 93.03% 64,489,495 80.06%

Long term Advances 2,879,900 2,348,700 8,395,100 (5,515,200) (65.70%) (6,046,400) (72.02%)

Long term Deposits 1,107,793 823,393 1,112,043 (4,250) (0.38%) (288,650) (25.96%)

Current Assets

14,739,856
Stock In Trade 188,670,923 157,281,404 142,541,548 46,129,375 32.36% 10.34%

Trade Debts 49,117,511 37,042,224 18,219,244 30,898,267 169.59% 18,822,980 103.31%

Loans & advances 29,663,172 27,922,296 13,696,543 15,966,629 116.57% 15,268,889 111.48%

Other receivables 4,686,733 3,247,824 15,420,612 (10,733,879) (69.61%) 2,188,379 14.19%

Tax refunds due from

10,046,707 15,404,303 - - - - -
Government

Cash and bank balances 18,551,929 20,235,253 12,563,224 5,988,705 47.67% 7,672,029 61.07%

Liabilities

Issued, Subscribed &

49,700,000 49,700,000 28,700,000 21,000,000 73.17% 21,000,000 73.17%
Paid Up Capital

Unappropriated profit 34,571,795 26,435,402 33,978,546 593,249 1.75% (7,543,144) (22.20%)

Revaluation Surplus of
64,573,073 64,810,534 13,364,212 51,208,861 383.18% 51,446,322 384.96%
Operating Fixed Assets

Long Term Liabilities

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Liabilities against assets
4,969,316 5,022,380 3,127,805 1,841,511 58.88% 60.57%
subject to finance lease 1,894,575

Due to directors 0 3,460,742 3,455,892 (3,455,892) (100%) 4,850 0.14%

Staff retirement benefit 6,807,057 5,425,365 4,353,984 2,453,073 56.34% 24.61%

1,071,381

Current Liabilities

Trade & other payables 152,169,431 133,655,156 99,994,035 52,175,396 52.18% 33,661,121 33.66%

Markup / interest payable 3,216,787 1,238,394 824,477 2,392,310 290.16% 413,917 50.20%

Short term borrowings 142,662,252 118,514,895 95,169,800 47,492,452 49.90% 23,345,095 24.53%

Current portion of
1,542,901 1,081,584 6,197,790 (4,654,889) (75.11%) (5,116,206) (82.55%)
finance lease

iii. Vertical Analysis

Image Garments Pvt. Ltd.

Vertical Analysis

Balance sheet as on June 30, 2007,2008 and 2009

Particulars Years In Percentage (%)

ASSETS 2009 2008 2007 2009 2008 2007

Long Term Assets

Operating Assets 155,487,943 145,039,055 80,549,560 33.79% 35.43% 27.54%

LONG TERM ADVANCE 2,879,900 2,348,700 8,395,100 0.63% 0.57% 2.87%

LONG TERM DEPOSITS 1,107,793 823,393 1,112,043 0.24% 0.20% 0.38%

Current Assets

Stock In Trade 188,670,923 157,281,404 142,541,548 41.00% 38.42% 48.73%

Trade Debts 49,117,511 37,042,224 18,219,244 10.67% 9.05% 6.23%

Loans & advances 29,663,172 27,922,296 13,696,543 6.45% 6.82% 4.68%

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Other receivables 4,686,733 3,247,824 15,420,612 1.02% 0.79% 5.27%
Tax refunds due from
10,046,707 15,404,303 - 2.18% 3.76% -
Government
Cash And Bank Balances 18,551,929 20,235,253 12,563,224 4.03% 4.94% 4.30%

Liabilities
Issued, Subscribed & Paid
4,969,316 5,022,380 28,700,000 10.80% 12.14% 9.81%
Up Capital
34,571,795
Unappropriated profit 3,460,742 33,978,546 7.51% 6.46% 11.62%
Revaluation Surplus of
Operating Fixed Assets
6,807,057 5,425,365 13,364,212 14.03% 15.83% 4.57%

Long Term Liabilities

Liabilities against assets
4,969,316 5,022,380 3,127,805 1.08% 1.23% 1.07%
subject to finance lease
Due to directors 0 3,460,742 3,455,892 0.00% 0.85% 1.18%

Staff retirement benefit 6,807,057 5,425,365 4,353,984 1.48% 1.33% 1.49%

Current Liabilities
133,655,156
Trade & other payables 152,169,431 99,994,035 33.07% 32.65% 34.19%
1,238,394
Markup / interest payable 3,216,787 824,477 0.70% 0.30% 0.28%

Short term borrowings 142,662,252 118,514,895 95,169,800 31.00% 28.95% 32.54%

Current portion of finance
1,542,901 1,081,584 6,197,790 0.34% 0.26% 2.12%
lease

iv. Industrial Analysis (Competitors):

Acid
Gross Net
Name of Test Debt
Years Profit Current Profit Working
Companies Ratio Ratio
Ratio Ratio Margin Capital
ratio
2009 18.89% 1.260 3.41% 6,643,275 40.8% 9.049%
Image
Garments
2008 19.70% 1.003 2.07% 1,145,605 37.4% 10.67%

Umer 2009 10.91% 1.326 2.41% 2,125,412 25.5% 8.12%

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 Apparels
2008 12.25% 1.121 3.12% 3,145,415 32.15% 6.14%

Masood 2009 21.25% 1.12 4.21% 10,165,450 30.5% 4.85%

Textile
Mills 2008 22.54% 1.101 3.32% 11,344,550 28.15% 5.40%

2009 16.12% 1.14% 2.21% 5,153,125 10.5% 13.20%

Jaguar
group
2008 13.34% 1.014% 1.45% 4,452,532 25.32% 11.23%

v. Trend Analysis

Liquidity Ratios

1.4 Current ratio

1.2 Acid Test ratio

1
0.8
0.6
0.4
0.2
0
2007 2008 2009

Leverage Ratios

Debt/Equity ratio
4 Debt to Tengible Net Worth
3.5 Current Worth/Net worth
Fixed Asset ratio / Equity ratio
3
2.5
2
1.5
1
0.5
0
2007 2008 2009

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Profitability Ratios

Net Profit Margin

3 Return on assets
Operating Income Margin
2.5 Return on Operating Assets
Sales to Fixed Assets
2 Return on Investment
Return on Total Equity
1.5
Gross Profit Margin

0.5

0
2007 2008 2009

Activity Ratio

14 Accounts Receivable Turnover

12
Accounts payable turnover
10
8
Inventory Turnover
6
4
Fixed assets Turnover
2
0
2007 2008 2009

350
Average collection period
300
250
Average payment period
200
150
100 Average age of inventory

50
0
2007 2008 2009

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 b. Future Prospectus

The future prospectus of the entity is so bright. The entity is growing rapidly and
developing the integrated system which helps in planning called (ERP). If we see the
growth rate of the entity is increasing day by day. The turnover of the entity as compared
to the base year is high and its orders are more than their capacity. There three types of
ratios to check the future prospectus of the entity current asset ratio, Gross Profit Ratio,
Working capital. All these represent an increasing trend. The ability of the company to
pay off its debts is also good. All calculated ratios are favorable which shows the strength
of the entity and confirms its going concern.

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 SWOT ANALYSIS OF ORGANIZATION
SWOT analysis is the method that helps manager to identify the strength, weaknesses,
opportunities and threats of the organization. Companies annually conduct the SWOT
analysis to know about prevailing internal and external situations of the organization. In
this analysis self considerations of the company and the outer situations of the market are
deeply check.

Image Garments also conducts this comprehensive analysis annually for the betterment of
organizational growth and market share. SWOT analysis plays a credible role to reveal
those factors that affect the organization openly and indirectly.

According to my point of view, the SWOT analysis of Image Garments is as follows;

Strengths

• Modern Textile machinery and equipments.

• Acquisition of ISO 8000-2001 and 14001-2400 certificate.

• Equipped with WRAP certification.

• Product innovation activities.

• Strong Integrated Information System (ERP Oracle E-Business Suite 11i)

• Good Competitive skills.

• Complete back track facility.

Weakness

• Centralized managerial decision making

• High cost of production

• High wastage cost

• Small international market share.

Opportunities

• Entering new markets

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 • Addition of new product line

• Faster market growth

• Acquiring the benefit of free trade

Threats

• Entry of new textile competitors

• Adverse Govt Policies.

• Easy excess of buyers in the world market

• Economy is not up to the market

• Political instability and lack trust of investors

• Uncertain and risky business environment

• Difficult upcoming challenges of free trade

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 CONCLUSION
In a time frame of 7 weeks in IMAGE GARMENTS, I came across the number of tasks
and felt a credible and professional change in my attitude. I skeptically conclude that
IMAGE GARMENTS is one of the leading knit outerwear manufacture and exporter in
Pakistan. The system, the management style, the policies & decentralized decision
making environment is really remarkable.

It produces quality products and achieving big market share with reputation in the foreign
market. I also conclude that IMAGE GARMENTS has some weaknesses and threat,
which it should have to counter for in future.

The overall analysis is indicating that the company’s progress has mainly attained
through dedication of employees. The effectiveness of its management, their willingness
to take advantage of opportunities and face challenges of changing economic picture, this
all contributes to the very much improved and sound position of company. This is really
appreciable for the devotion and hard work of all the employees of the company.

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 RECOMMENDATIONS FOR IMPROVEMENT
The Image Garments (Pvt) Ltd is losing its benefits in lower raw material prices, while
energy cost and credit cost have increased considerably. There is a need to check the
trend of further increases both by policy, support by the Government and itself. The
major challenges are to enhance the competitiveness of the entity, which have been
created on account of internal weaknesses to improve quality production efficiency at be
desired levels.

The suggestions that particularly relate to the Image Garments are as followings;

• Allocating a specific budget should enhance the promotional activities of Image

Garments.

• The company should control the financial charges especially commission to the
agents should be controlled.

• The cost of production of company should be controlled. The utilizing the plant
capacity in full can reduce fixed cost.

• The sale of company should increase by searching new markets.

• New product lines in fashion design and style should be launched.

• Political stability consistent Government policy and Government that remains for
its tenure.

• Lowering of energy costs to allow the industry to become more competitive.

• To create an environment that attracts and supports foreign investments including

joint venture.

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 REFERENCE & SOURCES USED
• Managers of relevant Departments.

• My Internship Supervisor [Mr. Sajjad Hussain (Manager Accounts)]

• System Files & Standard Operating Procedures of each department.

• Financial Statements of Image Garments (Pvt) Ltd.

• Image Garments website: www.imagegarments.com

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 ANNEXES
Financial Statements (2009-2008)

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Financial Statements (2008-2007)

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