Project Vip

UNIVERSITY OF GUJRAT SIALKOT SUB CAMPUS
Faculty of Management & Administrative Sciences
Course Title:
Internship Report
Submitted By:
Name: Ummad Hassan
Roll No: 15114954-030
M.COM 3rd Semester (ACC or FIN)

University Of Gujrat, Sialkot Sub Campus-PPP
Evaluation of Thesis/ Report/ Project
Department Name: COMMERCE
Student Name: UMMAD HASSAN
Roll No: 15114954-030
Session: Morning (2015 2017)
Thesis/Report/Project:
Topic: Internship Report at VIP WEARS Company
Credit Hours: Three
Supervisor: Mam, SAIRA BANO
Date: 08/03/2017
1. Internal Examiner
Signature----------
2. Convener
Signature----------
Marks Obtained By the Student
Head of Department: Mr. Asjad Maqsood Sandhu

Department: Commerce
Signature:
VIP WEARS (PVT) LIMITED
Dedication:
I dedicate to my Parents, Teachers, Friends and Fellow members without whom it was
almost impossible for me to complete my Internship work.
Ummad Hassan ID No.15114954-030 3

ACKNOWLEDGEMENT:
A warm felicitation goes for me to acknowledge the people, who hold the desirability
for encouraging, praising, assisting as well as believing me on the tasks of
merchandising activities what I have worked through my internship period.
First of all I would like to take the opportunity to thank mam, saira bano. Lecturer,
program manager (M.Com) & my internship supervisor for providing me
guidelines, help in assisting my report. He was constantly
supportingmewithhisinspiringpersonality.Iwillbealwaysthankfulfor his
extraordinary reinforcement.
AnextremethankstoAmirDarChairmanofVIPforprovidingmesucha
tremendousplaceforinternshiptobedone.
IwouldliketotaketheopportunitytothankMr.JawadSadiqi,DeputyGeneral Manager,
VIP WEAR (PVT) LIMITED for being my on-site supervisor & providing me
time to time information, suggestion as well as procedures to workwithmytopic.
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ID No.15114954-030Department of COMMERCE 41
Table of Contents:
ExecutiveSummary ........................................................................................................................ 7
CHAPTER1: ................................................................................................................................. 9
Part-I ............................................................................................................................................... 9
1. Introduction and Profile ofIndustry .......................................................................................... 9
CHAPTER2: ............................................................................................................................... 12
1. Overview oftheorganization.................................................................................................... 12
i. Introduction/ History ofVIPWears.................................................................................... 12
ii. Nature oftheorganization .................................................................................................. 13
iii. Businessvolume ................................................................................................................ 13
iv. Honors and Awards ........................................................................................................... 13
v. VisionStatement ................................................................................................................ 15
vi. MissionStatement .............................................................................................................. 15
vii. Goals&Objectives ............................................................................................................. 15
viii. ProductLines 15
ix. Products 17
x. Financial Analysis…………………...……………………………… 18
xi. PESTL Analysis ................................................................................................................ 30
xii. Contributionoforganization toward economicdevelopment ............................................. 34
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CHAPTER3: ............................................................................................................................... 36
2. Organizationalstructure ........................................................................................................... 36
OrganizationalHierarchychart ........................................................................................... 36
Chief Executiveofficer(CEO)................................................................................................. 37
ManagingDirector .................................................................................................................. 37
SA 8000 setsbasicstandards .............................................................................................. 37
No.ofEmployees 38
Mainoffice: 39
HeadOffice ........................................................................................................................ 40
KarachiOffice .................................................................................................................... 41
NewYorkOffice ...................................................................................................................... 43
Introduction ofalldepartments ........................................................................................... 45
Comments onOrganizationalStructure .................................................................................... 46
CHAPTER4: ............................................................................................................................... 48
Part-II .......................................................................................................................................... 48
3. Interneework ........................................................................................................................... 48
Brief Introduction ofinternee’soffice/branch .......................................................................... 50
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DetailsofSupervisors ......................................................................................................... 51
Weeklytimetables 37
INTERNSHIP WEEKLYPROGRESSREPORT .......................................................................
INTERNSHIP WEEKLYPROGRESSREPORT ................................................................... 52
Detail description of the operations/activities .................................................................. 56
Summaryoflearning ........................................................................................................ 58
Howdoyouthinktheinternshipactivitiesthatyoucarriedout are correlated with

yourclassroomknowledge? ................................................................................................ 60
CHAPTER5: ............................................................................................................................... 61
4. Conclusion 61
CHAPTER 6: .............................................................................................................................. 62
5. Recommendation .................................................................................................................... 62
6. References 62
7.
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Executive Summary:
internship was my first step in practical life through which I learnt a lot and it has aided
me being well equipped with valuable experience that would help me once I entre the
professional life after the completion of my studies. VIP wears comprises of two
power full work sites one in Sialkot and one in Karachi, In this company they have a
team of highly motivated and result oriented personnel, and have friendly corporate
environment to achive target of simply satisfying the customer. what I learnt at vip
group of industries over the weeks was how to get along with the people and I have
to work with them So, the work starts with the order taking and making business
relationship. Then sample making, planning, booking of every single material for
samples and getting approval are all the key responsibilities of merchandisers. In
case of production, sample goes in bulk so, the responsibilities become huge and
it comes to the relation with operation also.
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CHAPTER1
Part-I:
1. Introduction and Profile of Industry:
Leather Garment is very important and helpful for our Pakistan. Pakistan has
emerged as a key player in Leather Garment sector since 1986. Leather industry
earns 20% of total export earnings of Pakistan. Out of which, 15% comes from
the leather fashion garments sector which covers the major products of Jackets
and Gloves, trousers, skirts, shorts, jackets, sweaters, sports wears and many more
casual and fashion items. The sector currently employs approximately 1.5+
million workers, mostly females from under privileged social classes. I have
completed this report on the basis of all the department to Fashion Garment such
as Merchandising Department, Commercial Department, Production Department,
Supply Chain Department, Human Resource Department, Compliance
Department, MIS Department, and relevant organization like. So by completing
this report I get overall idea about leather fashion garment sector, so its carry
more value than any books.
I preferred this attachment in VIP Group, which is a 100% export oriented leather
industry. For continuing the study of internship in the VIP Group we almost
worked all the sections of this company and tried to find out the activities,
planning and many
otherthingsaswell.Incontext,wehavediscussedaboutthesethingsdeliberate lit let you
know about.
Objectives that I want to achieve:
The main purpose behind my internship at VIP was to explore and understand the
production procedures practically. I wanted to understand cutting, stitching &
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otherproductionprocesseseventuallyresultsinafinishedproduct.Ialsowantedto
practically see how human resource, managerial and financial operations are actually
carried out.
The objectives of this report are as follow
 It necessary document for future.

 To know detail about Leather fashion Garment sector.
 Information gathers about commercial.
 Comparison between classroom learning and practical learning.
 To know about the management andtechnicalprocessofleatherindustry.
 ToknowthemanagementProcedureinGarmentsIndustry.
 Tomarkacommentoverthewhole Internship Report.
 TomarkouttheimportantpartofInternshipReport.
 TofocusonthevaluablepartofInternshipReport.
 Tohaveskill labor for quality product.
 Opportunityof behavioral or practice inourgarmentssector.
 Regularly behavioral or practiceingarmentsindustry.
 Identifyingthetradeagreementsthatmightaffecttheexportgrowth .
 Todoamerchandisingpracticeinthefactory.
 Identifytheadditionalservicesthattheexistingcompaniesaregoingtoavail.
 Torelatetheuseofgroupwareandcollaborativesystemswithfuturetrendsin
managers'rolesandresponsibilities.
 Toidentifymerchandisingandtotalproductionsystem .
 TofindthecurrentscenarioofbackwardsupplychainstatusofWEAR(PVT)
LIMITED. c

Methodology:
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MethodologydefineshowwegothroughalltheprocessesofresearchandhowI
have proceeded on. Here includes the steps of conducting the report and
the explanationofthesourcesofdata.
 Factory.
 Differentorganization.
 Books.
 Discussion.
 Internet
 Classlecture.
 Library.
 Annualreport.
 TogatherinformationwhatIamseeinginpracticalinMyInternshipProgram.
 TogatherinformationwhatIdidinpracticalwhatwasdonebymeformpracticalknowledge.
 Tomakeacommentovertheprojectwehavetounderstandthewhole project.
Scopes:
Scopemeanshowmanyusesforcompletingthisreportspace.Thescopesare givenbellow-
 Factory
 BuyingHouse
 Discussion
 Internet
 Someofourseniorbrotherscanhelpus.
 Icangatherinformationvariousbooksandrelevantpaperwhatrelatedwith apparelindustry.
Limitations:
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LimitationreferstheobstaclesI haven’t ofa coffer completingthisreportandwhatI

couldnotcoverforthislimitation.
 Timeconstraint.
 Merchandiserdoesn’thaveenoughtimetogivetheinformationelaborately.
 Shorttimevisitindifferentworkstations.
 Lackoforganizingchainofcommand.
 Lackofinstructionbookandnotchangeanydata.
 Theyarefollowingtraditionalbusiness.
 Imayhavetosufferforlackofsupplychainmanagement.
 Duetohighemployeeturnoverrateandlackofgoodreportingpracticesinthe factory.
CHAPTER 2
2. Overview of the Organization:
Introduction/ History of VIPWears;
Manufacturing organizations perform various important roles in the economy.
They utilize themanpowerandotherresourcestopromoteandsupportvarious sectors in

the economy. They are generators of foreign exchange and helps to
stabilizetheeconomyaswell contribution creasetheforeignexchangelevels.
Thesoundnessofindustrialsectorensurestheeconomicgrowth.Industries
utilizeresourcesandasaresultgenerateresourcesfornationofferingemployment for
both labor and administration level employees. They encourage the habit of
working inpeople.
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WeareoneofthemajorexportersofLeatherGarments/LeatherHandBags from Pakistan.

We are the biggest group which is totally design as a Modern
infrastructureandwhereyoufeelsatisfytomakeyourproductswithus.
Thecompanywasestablishedin1986ByMr.ImtiazUdDinDarandovertheperiod
of27years,inthebeginningof1995, Wechangedoursimplexmanagementmode
afteranentireadjustmentandconvertitintoVIPWears(PVT)Limited.Nowinorder to
make production for international brands, we have two well equipped and
organizedunitsinSialkot&Karachi enable ingustomanufactureinexcessof10,000
to15,000qualityleathergarmentspermonthineachunit.Inordertomeetourboth leather
garments units, extensive demand of finishing leather, it has grown tremendously
and today we are one of the leading leather garment factories in
Pakistanintermsofqualityandreliability.
Now we are operating VIP GROUP from two different cities Sialkot & Karachi
becausewewanttogetbestresultsandspecialtieswhichothersarenotgetting.Our Head
office is in Sialkot and our subsidiary office is in Karachi both have different
facilitiesofproduction.
OurTanneryisalsolocatedinKarachiwherewearemakingleatherforboth units and we

produce approx. 1 million sq. ft leather per month and we focus & believe to
deliver our best in mean of Quality. In leather Garments major part is Leather so
we focus on our Leathers because if we get good quality leathers so
automaticallyourproductsisbest.
Nature of theorganization:
VIP Group is a division of creative solution and true wearable art. We

specializeinvarioustypesofLeatherGarmentsforinstanceJackets,Trousers, Skirts,
Coats, Shirts, Hunting Jackets, Hunting Trousers, Hats, Chaps, and
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Vastest.Eachgarmentisimpeccablyhandcraftedandissupplied to wellknown
clientsallovertheworld.
VIPGROUPisanISO9002certifiedcompanyholdingallcertificationsuchas
BSCI,SEDEX,SOCAM&OurallproductsisAZO,PCP,CHROMEFREE,whichis
nowveryimportantrequirementofEuropeanUnion.
Businessvolume:
ManufacturingandexportalltypesofLeatherFashionGarments,SemiBiker
andBikerwear.Wehavecapacitytoproduceabove50,000garmentspermonthin Sialkot
manufacturing unit and capacity to produce 25,000 garments per month in second
stitching unit in Karachi. We have 1,200 employees in Sialkot; on salary, contract,
commission and mix terms basis. Where asin Karachi; we have 800
employeeincludingmanagementstaffonmultipleterms.
Honors and Awards:
Message fromMD:
“Ibelongtothe2ndgenerationofthisfamilybusiness.Myfocuswasonto
increaseproductiontherewasmanychallengesthatIfaced.Firstchallengewasto offer a
competitive price structured for customers, elimination of child labor,
environmentfriendlymaterialswhilemaintainingacompetitiveprice.”
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Vision Statement:
“Tointegratewiththeskilldevelopmentofourworkers,responsibilitytowards
ourcommunityandthesatisfactionofourcustomers”andaimtobethenumberone
leathercompanyinAsia”
Mission Statement:
“Toproducetopqualitysportsarticlesandprovidesupportingservicestoour
clients,whileensuringthatweactresponsiblytowardsallourstakeholders”
Goals & Objectives:
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Companyhasthesoleresponsibilityformanagingthesupplyanddemandof
theworkers.Forthispurposeandaccordingtotherequirementsofthecompanyas
permission/vision,Companyisalwaysinaquestforsearching talent. Company also
keepsaneyeonworkersofcompetingfirm.Itisadifficulttask.However,theyhave
arranged some sources and procedures through which they can get some
informationregardingemployeesofotherfirms.
Secondmainobjectiveofthecompanyistohaveco-ordinationamongworkersand
alsoamongdepartments.Co-ordinationamongworkersisintheformofco-ordination
oftheactivitiesoftheworkers.Further,ittriestoco-ordinateactivitiessothatthe
workiscompletedon-time.
Finally,forsmoothworkingofthecompany,itisnecessarytohaveco-ordination among all

departments. Each department presents the report/plan that they will
performintheupcomingperiodandthenco-ordinatestheseplansalongwiththe
topmanagement.
ProductLines:
1. MotorbikeGarments.
2. SafetyWears.
3. FashionGarments.
1. MotorbikeGarments:
VIP Groups has a vast range of Motorbike wears which includes:
 MotorbikeGloves:
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Motorbikeglovesaremainlyproducedinleatherinvariousdesignswith
knuckleprotectorsforprofessionalaswellasriders.
 MotorbikeShoes:
Motorbikeshoesareproducedinsyntheticaswells as theticleatherwith rubbersoles.
 MotorbikePants:
Motorbikepantsareproducedinleatheraswellasinpolyestercordurafabric
withCEprotectorstoprotectincaseofanyaccidentdependinguponthechoice
ofcustomers.
 RacingSuits:
RacingsuitsaresolelyproducedforMotorbikeracersfortrainingaswellas professional
racing occasions with CE protectors to protect in case of any accident.
 MotorbikeJackets:
Motorbike jackets are produced in leather and polyester cordura fabric in a

numberofdesignsandspecificationswithCEprotectorstoprotectincaseofany
accident.
 RacingSafetyEquipment:
Motorbikeracing/ridings one timesresultsinaccidentsandinjuriesandto protect from these

injuries various type of protective gear is used like back
protectors,kneeprotectors,elbowprotectors,hip/thighprotectors,shoulder protectors.
2. SafetyWears:
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VIP is also offering a large number of workplace safety products including:
 SafetyGloves:
Workplacesafetyglovesareveryimportantfortheworkers.Varioustypes
ofsafetyglovesareusedlikefire-proofNomexgloves,electric-safetygloves,
impactresistantgloves,cut-resistantgloves,freezerglovesetc.
 SafetyFacemask:
Face masks protects the workers in various conditions like fire, dust,
extremecoldatmosphere.Theyaremainlyproducedincotton,Nomexand Polyester.
 Road-safety ReflectiveClothing:
Roadsafetywearsaremainlyusedbypolice&constructionworkers.This
categoryofproductsmainlyincludesreflectivesafetyvests,reflectivegloves,
andreflectivepants.Mostofthemhavefluorescentcolorswhichglowinthe dark.
 ExtremeWinterCoveralls:
Thesedaysrendofcoldstoragehousesisincreasingwhichhasincreased
thedemandoffreezerinsulatedwarmgloves,andcoverallswhichprotectthe cold
storage workers from extreme colds weather inside the cold storage room.
 SafetyWorkShirts:
Work shirts are produced in cotton or polyester and are mainly used by
construction,mining,electrical&mechanicalworkers.Theyhaveare reflective
tapeallacrosswhichglowinthedark.
3. FashionGarments:
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VIPWear(PVT) Limited specializeinvarioustypesofLeatherGarmentsfor instance

Jackets, Trousers, Skirts, Coats, Shirts, Hunting Jackets, Hunting
Trousers,Hats,Chaps,andVests.Herearesomesamplesofit.
FINANCIAL RATIO ANALYSIS
Ratio analysis is powerful tool of financial analysis. A ratio is defined as “the quotient of
two mathematical expression” and as “the relationship between two or more things”.
In financial ratio analysis, a ratio is used as standard for determining the financial
position and performance of a firm.
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2011 2012 2013 2014

ASSETS Rs in million % Rs in million % Rs in million % Rs in million %
Current assets: Cash and balances 131,67611% 266403.10% 275183.12% 309551.6%
with treasury and other banks
Balances with other banks 27,582 2% 30,222 2% 17,458 1% 12,108 1%
Lending to financial institutions 44,380 4% 8,273 3% 51,939 4% 111,789 7%
Investments- net 319,531 28% 343,538 24% 397,959 29% 561,764 36%
Advances- net 525,046 46% 654,690 40% 615,420 45% 626,704 41%
Fixed assets 27,4541 2% 733003. 2% 858096. 2% 1051197 2%
Deferred tax assets- net 7,935 1% 9,848 1% 10,955 1% 9,878 1%
Other assets 65,973 6% 76,675 5% 80,564 6% 91,045 6%
Total assets 1,149,57. 100% 116965. 88% 1208639. 100% 1364725. 100%
LIABILITES
Current liabilities :short term bills 9,1050. 1% 96254. 1% 134380. 1% 109151. 1%
payable
Borrowings 26,372 2% 51,297 2% 22,239 2% 37,541 2%
Deposits and other accounts 927,421 81% 1,036,739 71% 1,101,139 81% 1,233,525 80%
Sub-ordinated loans - 0% - 0% - 0% - 0%
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Liabilities against assets subject to 76 0% 30 0% 24 0% 13 0%

Finance Lease
Deferred tax liabilities - 0% - 0% - 0% - 0%
Other liabilities 53,952 5% 67,115 4% 71,343 5% 82,634 5%
Total Liabilities 1,016,926 88% 1,169,548 78% 1,208,639 89% 1,364,725 88%
NETASSETS 132,651 12% 139,981 10% 156,287 11% 178,329 12%
Share capital 16,818 1% 18,500 1% 21,275 2% 21,275 1%

Reserves 25,343 2% 28,819 2% 31,539 2% 32,074 2%
Inappropriate profit 68,359 6% 57,419 5% 48,046 4% 57,007 4%
Share holder Equity 110,520 10% 135233. 8% 155387. 7% 160663. 7%
Surplus on revaluation of assets 22,131 2% 35,243 2% 55,427 4% 67,973 4%
132,651 12% 139,981 10% 156,287 11% 178,329 12%
PROFITABILITY
Markup/ Return/Interest earned 95,325 100% 100,092 95% 99,028 100% 114,174 100%
Markup/ Return/Interest 48,516 51% 56,418 48% 60,823 61% 70,007 61%
expensed
Net Markup/ Interest 46,810 49% 43,674 47% 38,205 39% 44,166 39%
income
Fee, Commission, 9,588 10% 10,707 10% 11,598 12% 12,135 11%
Brokerage and
Exchange income
Capital gain &Dividend income 4,096 4% 6,844 4% 6,908 7% 11,103 10%
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Other income 5,653 6% 6,298 6% 7,064 7% 8,234 7%

Non-interest income 19,337 20% 23,849 19% 25,570 26% 31,472 28%
Gross income 66,147 69% 67,524 66% 63,774 64% 75,639 66%
Operating Expenses(Non Mark- 30,255 32% 31637. 30% 37295. 37% 38653. 36%
Up/Interest Expense)
Earning before interest and 35,891. 38% 57649. 36% 60553. 28% 45681. 30%
Tax
Provisions 9,880 10% 11,060 10% 20,401 21% 12,478 11%
Profit before taxation 26,011 27% 21,378 26% 7,078 7% 22,001 19%
Taxation 8,406 9% 6,437 8% 1,578 2% 6,973 6%
Profit after taxation 17,605 18% 14,941 18% 5,500 6% 15,028 13%
Horizontal analysis
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2011 11Vs10 2012 12Vs11 2013 13Vs12 2014 14Vs13

ASSETS Rs in million % Rs in million % Rs in million % Rs in million
%
Cash and balances with 131,676 14% 158,333 20% 157,930 0% 97,972 -38%
treasury and other banks
Balances with other banks 27,582 -9% 30,222 10% 17,458 -42% 12,108 -31%
Lending to financial 44,380 93% 8,273 -81% 51,939 528% 111,789 115%
institutions
Investments- net 319,531 6% 343,538 8% 397,959 16% 561,764 41%
Advances- net 525,046 10% 654,690 25% 615,420 -6% 626,704 2%
Operating Fixed assets 27,454 2% 27,950 2% 32,702 17% 31,796 -3%
Deferred taxas sets- net 7,935 14% 9,848 24% 10,955 11% 9,878 -10%
Other assets 65,973 17% 76,675 16% 80,564 5% 91,045 13%
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Total assets 1,149,578 11% 1,309,528 14% 1,364,926 4% 1,543,054 13%

LIABILITES
Bills payable 9,105 14% 14,368 58% 13,895 -3% 11,012 -21%
Borrowings 26,372 31% 51,297 95% 22,239 -57% 37,541 69%
Deposits and other accounts 927,421 11% 1,036,739 12% 1,101,139 6% 1,233,525 12%
Sub- ordinated loans - 0% - 0% - 0% - 0%
Liabilities against assets 76 -28% 30 -61% 24 -19% 13 -47%
subject to Finance Lease
Deferred tax liabilities - 0% - 0% - 0% - 0%
Other liabilities 53,952 10% 67,115 24% 71,343 6% 82,634 16%
Total Liabilities 1,016,926 12% 1,169,548 15% 1,208,639 3% 1,364,725 13%
NETASSETS 132,651 3% 139,981 6% 156,287 12% 178,329 14%

Share capital 16,818 25% 18,500 10% 21,275 15% 21,275 0%
Reserves 25,343 4% 28,819 14% 31,539 9% 32,074 2%
Inappropriate profit 68,359 4% 57,419 -16% 48,046 -16% 57,007 19%
Equity 110,520 7% 104,737 -5% 100,860 -4% 110,356 9%
Surplus on revaluation of
22,131 -11% 35,243 59% 55,427 57% 67,973 23%
assets
132,651 3% 139,981 6% 156,287 12% 178,329 14%
PROFITABILITY 95,325 8% 100,092 5% 99,028 -1% 114,174 15%
Markup/Return/Interest earned
48,516 7% 56,418 16% 60,823 8% 70,007 15%
Markup/Return/Interest
expensed
Net Markup/ Interest income 46,810 8% 43,674 -7% 38,205 -13% 44,166 16%
Fee, Commission, Brokerage 9,588 0% 10,707 12% 11,598 8% 12,135 5%
and Exchange income
Capital gain &Dividend 4,096 13% 6,844 67% 6,908 1% 11,103 61%
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income
Other income 5,653 29% 6,298 11% 7,064 12% 8,234 17%
Non-interest income 19,337 10% 23,849 23% 25,570 7% 31,472 23%
Gross income 66,147 9% 67,524 2% 63,774 -6% 75,639 19%
Operating Expenses(Non
30,255 15% 35,085 16% 36,295 3% 41,161 13%
Mark-Up/Interest Expense)
Profit before provisions 35,891 4% 32,438 -10% 27,480 -15% 34,478 25%
Provisions
9,880 -2% 11,060 12% 20,401 84% 12,478 -39%
Profit before taxation 26,011 7% 21,378 -18% 7,078 -67% 22,001 211%
Taxation
8,406 23% 6,437 -23% 1,578 -75% 6,973 342%
Profit after taxation 17,605 0% 14,941 -15% 5,500 -63% 15,028 173%
LIQUIDITY RATIOS
Liquidity ratios measure the company's ability to meet its short-term obligations. It
includes
Current ratio
Working capital
CURRENT RATIO
The ratio is mainly used to give an idea of the company's ability to pay back its short-
term liabilities (debt and payables) with its short-term assets (cash, inventory,
receivables). The higher the current ratio, the more capable the company is of paying
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its obligations. A ratio under 1 suggests that the company would be unable to pay off
its obligations if they came due at that point. While this shows the company is not in
good financial health, it does not necessarily mean that it will go bankrupt - as there
are many ways to access financing - but it is definitely not a good sign.
FORMULA:
Current ratio=current asset / current liabilities

Year 2014 2015 2016
Current asset 266,403,372 275,183,048 309,551,824
Current liabilities 96,254,591 134,380,906 109,151,918
Current ratio 2.05

2.76 2.84
INTERPRETATION:
As we see in table and graph a slight change in current ratio in all years which show the
efficiency of company.
LEVERAGE RATIOS
Leverage ratios measure the degree of security of suppliers of long term funds.
These include:
Debt Ratio
Debt / Equity Ratio
Debt to Tangible Net worth Ratio
DEBT RATIO
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This ratio compares a company's total liabilities to its total assets, which is used to
achieve a general idea as to the amount of leverage being used by a company. Total
liabilities include both the current and non-current liabilities.
A low percentage means that the company is less dependent on leverage, i.e., money
borrowed from and/or owed to others. The lower the percentage, the less leverage a
company is using and the stronger its equity position. In general, the higher the ratio,
the more risk that company is considered to have taken on.
FORMULA:
Debt Ratio = Total liabilities / Total Assets

Year 2013 2015 2016
Total Liabilities 19,012,206 1159,982,395 1211,054,416
Total Assets 1154,966,422 1316,160,457 1371,717,946
Debt Ratio 0.88 0.88 0.88
DEBT TO EQUITY RATIO:
The debt-equity ratio is another leverage ratio that compares a company's total liabilities
to its total shareholders' equity. This is a measurement of how much suppliers,
lenders, creditors and obligors have committed to the company versus what the
shareholders have committed.
To a large degree, the debt-equity ratio provides another vantage point on a company's
leverage position, in this case, comparing total liabilities to shareholders' equity, as
opposed
to total assets in the debt ratio. Similar to the debt ratio, a lower the percentage means
that a company is using less leverage and has a stronger equity position.
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FORMULA:
Debt to Equity Ratio = Total liabilities (Debt) / Shareholder equity
Shareholder equity = Share Capital + Reserve + Inappropriate Profit + Surplus on

Revaluation of Assets
Year 2014 2015 2016
Total Liabilities 1019,012.206 1159,982.395 1211,054.416
Shareholder equity 135,233.698 155,387.184 1606635.30
Debt/Equity 7.54 7.47 7.35
INTERPRETATION:
As we see in table2014 ratio is7.54 but in 2015 it decreased by 7.47and decrease more in
2016 by 7.35 . Its show that VIP is finances its assets and mostly relies on debt
financing for bank.
PROFITABILITY RATIOS
Profitability ratios measure the earning ability of a firm.
These include:
Net Profit Margin

Return on Assets
Operating Income Margin
Return on Operating Assets
Return on Total Equity
Gross Profit Margin
UMMAD HASSAN
NET PROFIT MARGIN
Net profit margin (or profit margin, net margin, return on revenue) is a ratio of
profitability calculated as after-tax net income (net profits) divided by sales (revenue).
Net profit margin is displayed as a percentage. It shows the amount of each sales
dollar left over after all expenses have been paid.
Net profit margin is a key ratio of profitability. It is very useful when comparing
companies in similar industries. A higher net profit margin means that a company is
more efficient at converting sales into actual profit.
FORMULA:
Net Profit Margin = Net Profit /Net Sales*100
Net sale = Markup revenue
Year 2014 2015 2016
Net Profit 17,724,846 16,887,057 5,306,783
Net Sale 47,389,388 44,573,404 39,297,962
Net Profit Margin 37.40% 37.89% 13.5%
FORMULA:
Return on asset: (EBIT / Total Assets)*100
EBIT = Profit before Taxation + Interest expenses
Year 2014 2015 2016
Net Income 57,649,034 60,553,151 45,681,938
Total Assets 1154,966,422 1316,160,457 1371717946
Return on Asset 4.99% 4.60% 3.33%
OPERATING INCOME MARGIN
UMMAD HASSAN
It is profitability ratio showing operating income as a percentage of revenue. Operating

margin is a measurement of what proportion of a company's revenue is left over after
paying for variable costs of production such as wages, raw materials, etc. A healthy
operating margin is required for a company to be able to pay for its fixed costs, such
as interest on debt.
Also known as "operating profit margin" or "net profit margin" “return on sales”.
FORMULA:
Operating income margin = (EBIT/ Net Sales)*100
EBIT = Profit before Taxation + Interest expenses
Net Sale= Mark up revenu
Year 2014 2015 2016
EBIT 57,649,034 60,553,151 45,681,938
Net Sale 47,389,388 44,573,404 39,297,962
Operating income 121.64% 135.85%

margin 116%
INTERPRETATION:
As we see in graph and table the Operating income margin is decreasing in the year
2016as compare to 2015it happens due to increasing of sale more quickly than to
operating profit.
Year 2014 2015 2016
Net Income 17,724,846 16,887,057 5,306,783
Shareholder equity 135,233,698 155,387,184 159,842,867
Return on Equity 13.10% 10.87% 3.32%
ACTIVITY RATIOS
UMMAD HASSAN
Activity ratios measure a firm's ability to convert different accounts within their balance
sheets into cash or sales.
These include:
Total Assets Turnover

Fixed Assets Turnover
TOTAL ASSETS TURNOVER

Asset turnover ratio is the ratio of a company's sales to its assets. It is an efficiency ratio
which tells how successfully the company is using its assets to generate revenue. If a
company can generate more sales with fewer assets it has a higher turnover ratio
which tells it is a good company because it is using its assets efficiently. A lower
turnover ratio tells that the company is not using its assets optimally.
FORMULA:
Asset Turnover Ratio = Net sales / Total Assets
Net sale = Markup Revenue / Interest Earn / Return

Year 2014 2015 2016
Net Sale 47,389,388 44,573,404 39,297,962
Total Assets 1154,966,422 1316,160,457 1371,717,946
Asset Turnover Ratio 0.04 times 0.03 times

0.03 times
GRAPHICAL REPRESENTATION
FIXED ASSETS TURNOVER

Fixed asset turnover ratio compares the sales revenue a company to its fixed assets. This
ratio tells us how effectively and efficiently a company is using its fixed assets to
UMMAD HASSAN
generate revenues. This ratio indicates the productivity of fixed assets in generating
revenues.
There is no standard guideline about the best level of asset turnover ratio. Therefore, it is
important to compare the asset turnover ratio over the years for the same company.
This comparison will tell whether the company’s performance is improving or
deteriorating over the years. It is also important to compare the asset turnover ratio of
other companies in the same industry. This comparison will indicate whether the
company is performing better or worse than others.
FORMULA:
Fixed Assets turnover = Net Sales / Fixed Assets
Fixed Asset = Operating Fixed Assets
Net Sale = Markup revenue / Return / Interest Earn

Year 2014 2015 2016
Net Sale 47,389,388 44,573,404 39,297,962
Fixed Assets 733,003,035 858,096,663 1,051,197,298
Fixed Assets 0.06 times 0.05 times

turnover 0.04 times
MARKET RATIOS
Market ratios are commonly used by the investors to assess the performance of a business
as an investment and also the cost of issuing stock.
These include:
Dividend Per Share
UMMAD HASSAN
Earnings Per Share

Price/Earnings Ratio
Dividend per share

The sum of declared dividends for every ordinary share issued. Dividend per share
(DPS) is the total dividends paid out over an entire year (including interim dividends
but not including special dividends) divided by the number of outstanding ordinary
shares issued.
Formula:
Dividend per share = Dividend paid to share holder / Average common share
outstanding
Avg. common share outstanding= Share capital amount / Par value of share
Year 2014 2015 2016
Dividend per share 3.10 2.00 5.50
EARNING PER SHARE

The earnings per share ratio (EPS ratio) measure the amount of a company's net income
that is theoretically available for payment to the holders of its common stock.
A company with high earnings per share ratio is capable of generating a significant
dividend for investors, or it may plow the funds back into its business for more
growth; in either case, a high ratio indicates a potentially worthwhile investment,
depending on the market price of the stock.
FORMULA:
Earning per Share = Profit Available to shareholders or Net income after tax/ No of
shares outstanding
UMMAD HASSAN
No. of share Outstanding = Share capital amount / Par value of share

Year 2014 2015 2016
Earnings per Share 4.03 2.59 7.06
PESTELANALYSIS:
A PESTL analysis is a framework or tool used by marketers to analyze and

monitorthemacro-environmentalfactorsthathaveanimpactonanorganization.Itis
usedtoidentifythreatsandweaknesseswhich issued inaSWOTanalysis.
PESTEL stands for:
 P –Political
 E –Economic
 S –Social
 T –Technological
 E _Environmental
 L –Legal
PoliticalAnalysis:
PoliticalconditionsofPakistanarenotsomuchstablethesedays.Memogate scandal,
Market crises,inflation etc allaresignsofinstablepoliticalconditions.
Trading policies:
TradingpoliciesalsoinfluenceallthebusinessbodiesinPakistan.Thetrading policies in
Pakistan are very favorable to the manufacturing industry in terms initiatives.
Initiatives:
UMMAD HASSAN
Asfarasgovernmentinitiativesareconcerned,thereisrebateof fared on export of goods with

various percentages depending on the material used like leather,polyester,cottonetc…
Discrepancies/Threats:
Powerload-sheddingis one of the main problems faced by the company

whichisnotresolvedforlastmanyyears.Theyareusingtheirowndieselgenerators
tofulfilltheirelectricityneedstorunthecompanywhichiscostlyandcutstheoverall
revenuesofthecompany.
Exchange Rate:
VIPsolelydealswithinternationalclientandworksinEuro,USdollar,Great Britain Pound

etc and fluctuation in exchange rates of these currencies affect the
companysignificantly.
Inflation:
AsVIPisamanufacturingcompany,itpurchaseshugequantityoflocalraw
materialsincludingrawleather,chemicals,and fabrics to meetitsproductionneeds.
Inflation in the market results in increased prices of these materials and eventually
endsincut-offintheprofitwhereastheset pricesremainattheirplace.Inflationrate
isincreasingdaybydayandthelaborisalsobecometargetofitandultimatelythey
askforincreasedwages/salarieswhichbecomesproblematic.
Tax:
Tax is a major source of income of government. VIP pays sales tax on the general
items purchased as well on the foreign exchange received. Government
providesarefundonsalestaxtosupportfriendlytax-payingculture.BecauseVIP
UMMAD HASSAN
andotherfirmshavetotakepartandplaytheirroleintheeconomicgrowthandfor
thatpurposetheirowneconomicconditionhastobestrengthened.
Socialanalysis:
MostlythepeopleofSialkotareilliterate.LiteracyrateofPakistanis55%
whichshowsbackwardnessineducationalsector.
Social factors represent the culture of the society that an organization

operateswithin.Theymay include demographics,agedistribution,populationgrowth
rates, level of education, distribution of wealth and social classes, living
conditions
andlifestyle.Theyalsoincludetheculturalaspectshealthconsciousness,population
growthrate,careerattitudesandemphasisonsafety. VIPtakemuchcareofcultural
aspectsthatincludesocialwelfareofitsemployees.
Technologicalanalysis:
TechnologyinPakistanisoutdatedandbackwardascomparetodeveloped countries.
Here are some things that technology does in the production process:
Automation:Equipmentintheproductionprocessiscontrolledbyacomputer.
Mechanization:Tasksaredonebymachinesoperatedbypeople.
New Technology offers following advantages:
 Increasedproductivity.
 Boostsmotivation.
 Trainingisneededtooperatenewmachines.Workersbecomemoreskilled.
 Betterquality.
 Better stockcontrol.
 Quickercommunicationandreducedpaperwork.
UMMAD HASSAN
LegalFactors:
ProductionControls:
Inordertosafeguardtheinterestofthecommunitygovernmentmakescertain
rulesandregulationsonwhattoproduce,howtoproduceandwheretoproduce. VIP
producesleather withinitsowntanneryandusechemicalsforproduction.
Chemicalswhichmayharmtheenvironmentarealsototally banned strictly controlled e.g.

sulphuricacidusedforleathertanning’s should bedisposedoffthrough certain
processanduseduptoacertainleveltoprotecttheenvironmentand ozone layer aswell.
Employees Protection legislations:
 LegislationsforhealthandSafetyatwork:
 Toprotectworkersfromdangerousmachinery.
 Workersshouldbeprovidedwithpropersafetyequipment'sandclothing.
 Areasonableworkforcetemperatureismaintainedforworkers.
 Properhygienicconditionsandwashingfacilitiesareprovided.
 Workersget adequate breaksbetweenshifts.
Protect employees against unfair dismissal:
 Businesscannotdismisstheworkersbecausetheyhavejoinedatradeunion or for being

pregnant. There should be proper warning before dismissing a worker otherwise
itwillbetreatedasunfairdismissal.
 Ensurefairwagesforth employees.
Contribution of organization toward economic development:
LeatherGarmentisveryimportantandhelpfulforourPakistan.Pakistanhas emerged as a
key player in Leather Garment sector since 1986. Leather industry
UMMAD HASSAN
earns20%oftotalexportearningsofPakistan.Outofwhich,15%comesfromthe leather
fashion garments sector which covers the major products of Jackets and Gloves,
trousers, skirts, shorts, jackets, sweaters, sports wears and many more
casualandfashionitems.Thesectorcurrentlyemploysapproximately1.5+million
workers,mostlyfemalesfromunderprivilegedsocialclasses..
Increased per capita income:
The Gross Domestic Product per capita in Pakistan was last recorded at802.45US
dollars in 2012. The GDP per Capita in Pakistan is equivalent to 6
percentoftheworld’saverage.GDPpercapitainPakistanisreportedbytheWorld Bank.
GDP per capita in Pakistan averaged 480.59 USD from 1960 until 2012,
reachinganalltimehighof802.45USDin2012andarecordlowof219.56USDin 1960.
VIPisplaying a vitalroletoofferemploymenttoanumberofpeopleand
hencehelpingtoincreaseoverallpercapitaincomeinPakistan.
Housing of workers:
VIPisofferingresidentialfacilitiestoitsworkersandoffersresidentialloans to
itsemployees.
Generates Foreign Exchange:
VIP exports its products to Europe, USA, and Canada as well Middle East
Germany,France.Asaresultofexportsitearnsforeignexchangewhichisaddedto
theoverallforeignexchangereservesofthecountrywhichmaybeusedforvarious
economic activities. It is a major part which helps in the economic growth of the
country.
Use of Country’s Domestic Resources:
UMMAD HASSAN
VIPmainproductisleatherwhichisalocalproduct.Itpurchasesrawleather from the local

market and prepares it in their own factory. They use the local
resourceanddoesnotimportfromothercountrieswhichsavesthevaluableforeign
currenciesandstablesthebalanceofpaymentofthecountry.
Chapter 3
3. Organizationalstructure/Organizational Hierarchychart
UMMAD HASSAN
UMMAD HASSAN
VIPWearshasmoremechanisticstructureandorganizedonfunctionalbasis,which is then
hybrid by process departmentalization. Enterprise is following standardized
approachinproductionfor fulfillmentofmarketrequirement.
Directors:
1. Mr. AmirDar (CEO)

2. Mr. UsmanDar
3. Mr. UmerDar
4. Mr. ImranDar
Chief Executive officer(CEO)
Thisisthetopmanagementoftheindustry,whichcontrolstheotherslevelsof management
in the industry. He directly linked with the managing director of the industry.
 ManagesExternals
 Issueorders
 SetsStrategicDirections
 Stakeholderrelationships
Managing Director:
Managingdirectormanagemorethanonedepartmentintheindustry,hisduty is to make
plans, ideas and strategies by which he can control the working of other
departments.HecontrolsubDirectorsofdifferentdepartmentsofthecompany.
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 DirectorofPurchase
 DirectorofProduction
 DirectorofMarketing&Finance
 DirectorofResearch&Development
Director of Purchase:
Inthislevelofdepartmentdirectorcontrolthedifferentsublevelsofpurchase departments,
such as he look after the work of import manager and manager of
purchaseandalsoallocateresources.
Director of Production:
Controlstheproductionprocessintheindustryandhisdutyistomanagethe
availabilityofrawmaterialandtoprovidebetterpossiblewayofproduction.Under
hissupervisiontwomainpersonsareworkingsuchas,Productioncoordinator.
Director of Research and Development:
Underhissupervisionfollowinglevelofresearchandtechnologydepartments are working

which work for the latest technological base machinery and keep the
technologicaldepartmentup-to-dateasunder:
No. ofEmployees
Wehave1,200employeesinSialkot;onsalary,contract,commissionand mix terms basis.

Whereas In Karachi we have 800 employee includingmanagementstaffonmultipleterms.
Mainoffice:
Head Office Karachi Office New York Office
UMMAD HASSAN
SaidPur Gondal Road, Plot No. 384, Sector 7/A, Korangi 82-96, Country Pointe Circle,
Sialkot-51310,Pakistan Industrial Area, Karachi-Pakistan NY-11427, USA
Tel +92-52-4268186 Tel: +92-21-3512447 Tel: +1-718-974-1001
Fax:+92-52-4262852 Fax: +92-21-3512428 Fax:+1-718-740-2923
e-mail: e-mail: marketing@vipgroup.com e-mail:
marketing@vipgroup.com aqil@vip-group.us
Introduction of alldepartments
(a) Numbering
(b) QualityAssurance
(c) SampleDepartment
(d) Materialstore
(e) LeatherStore
(f) FabricStore
(g) FinishingStore
(h) Motorbike &Fashion
(2) Administration
(Mr.DanishZaib)
(3) AccountsDepartment
(Mr. Abdul Qayyum)
UMMAD HASSAN
VIP WEARS (PVT)
VIPLTD.
WEARS (PVT) LIMITED
(4) HumanResourceDepartment
(Mr. TahirNaseem)
(5) ERP Mr.Adnan

(6) MarketingDepartment Mr. JawadHasan
(7) Export Mr.NazirHussain
(8) Inventory Mr. UsmanNazar
(9) PurchaseDepartment Mr.Waheed Mughal
Part-II
4. Interneework:
Brief Introductionof internee’s office/branch:
I did internship at VIP WEARs (PVT) LIMITED Sialkot office in merchandising

department under the marketing department. This department
considermostimportantdepartmentinthetermofbusiness.Withoutmerchandising
department, necessary operations by an organization can’t be done. For example
merchandisers is a business on marketing activities responsible for ensuring a
products description both quality and quantity. Merchandising means total
responsibilityofaMerchandiser.
4.2 Details of Supervisors:
UMMAD HASSAN
TheowneroftheVIPgivesresponsibilityMr.SuhailandMr.wasimtobemy
supervisorineverydepartmentIworkedthere. Theywereindeedanexpertofevery
department. They were intelligent and generous .They was biggest follower of
Sufism. They have a great personality and he has firm commandment on English
language.DuringmystayIlearnedmuchaboutBusinessCommunication.
Weeklytimetables:
InmyfirstweekInterviewtakenbymyMarketingManager(Sir.Jawad)& Merchandise
Manager ( Sir. Suhail). After this Mr. Suhail introduced me with the
Managementstaff.Andthenhesentme under thesupervisionofMr.Wasim.The
st
experiencewhichIlearntfromHimin1 week.
Weekly Report: 1st week (15-11-2016 to 22-11-2016)

Internee Name Ummad Hassan
Student Number/ Batch 15114954-030(2015-2017)
Internship Employer VIP Group of Company
Period Covered 15-11-2016 to 22-11-2016
Describe your principle assignments and responsibilities for week 15 November to

22 November.
The first week of my internship was the introductory week because in this week I got
the introduction about organization and its entire department worked in the
Ummad Hassan
ID No.15114954-030 44
organization. In the first week I felt hesitation doing work in the organization. I
introduced me as internee in the organization for the purpose to got experience.
What experiences were particularly rewarding during this period?
The professional workplace environment was surprisingly a pleasant experience itself.

They know how about organization and efficient work enlightened the professional
skills in me. The most rewarding experience to work with the most qualified staff and
professional team qualified staff and professional team.
Describe other professional growth opportunities (e.g., conferences, field trips,

directed readings, meetings, research...) that you were able to capitalize on last
week and/or hope to have next week?
The first week was basically my introductory session with the organization and its
employees. The only meeting I had been with the president of VIP Group of
Company. The only visit I made was to different departments and parts of
organization. During visit I got information about the organization working criteria
and its owners of the organization.
Describe principal tasks and duties to be performed and accomplishments
during the upcoming week?
The duties for upcoming weeks were explained to me by the management clearly and I
got all the necessary instructions how to deal with it. I’m supposed to enter in
practical life as in next week I have to ask to write the letter of meeting about the
important issues of the organization and members that have been participated in the
meeting.
Weekly Report: 2nd week (23-11-2016 to 31-11-2016)

Ummad Hassan
ID No.15114954-030 44

Describe your principle assignments and responsibilities for week 23
November to 31 November
The last week, which was introductory, last week was full of assignments and
responsibilities. From the Day first of the week, I got briefing on the task that I have
been performed in this week now I am excited to perform my duties. In this week I
met with the owner of the organization and make an briefly introduction about my
career.
Starting from Monday to Saturday, signing in on 9AM to signing off at 5PM, the whole
week was a major step out towards work. In last week I got a chance to attend a
formal session of chamber as the delegation from Ministry of commerce was invited
and they gave presentation and briefings over their work about TDAP (Trade
development authority of Pakistan) to the house. I was taught to write minutes of
meeting and then reviewing it into bullets. Later in week I was supposed to write
some official letters about the exhibition which will be going too held in later in
September.

week and/or hope to have next week.
Ummad Hassan
ID No.15114954-030 44
This was a really rewarding period for me as I got so many to know and I was basically
into practical field in best known organization of the region. The conference, better to
call it session with the directors from ministry of commerce was very productive
opportunity for me. Furthermore writing letters for asking sponsorship and security
for the event was itself a sort of research work for me.
Describe principal tasks and duties to be performed and accomplishments during
The upcoming week.
In my responsibility the principal task was to write different letters to different authorities
in last week. But most importantly I’m supposed to transfer to next departments.
There I had to do a lot of work and draw trade map which will give information about
the trade relationships keeping in view the status of export and import of different
goods to that country
Weekly Report: 3rd week (01-12-2016 to 07-12-2016)

Describe your principle assignments and responsibilities for week 1 December to

07December
Ummad Hassan
ID No.15114954-030 44
In this week the, burden got heavier as I got to transfer to R&D department, there I got to
know about trade map and its significance and got an assignment to prepare trade map
of Pak and U.S.A. More so ever I was supposed to do financial analysis of VIP Group
of Company.

 Providing contact information (e.g.., address, cell phone);

 Reporting directly to the site supervisor for instructions and fulfilling his/her duties as
stipulated by their
 Supervisor;
 Familiarizing and abiding by all site policies and procedures applicable to his/her
performance, conduct.
 Behavior;
 Visiting, observing and participating, as appropriate, in all levels of the site’s operations,
including meetings,
 Programs, projects and training sessions;
 Setting mutually satisfactory and feasible performance objectives in consultation with the
site supervisor since
 These objectives will constitute a baseline against which the student intern’s performance
is assessed by the site supervisor;
Describe principal tasks and duties to be performed and accomplishments during

the upcoming week.
Along with different principal tasks, assignments given to me in R&D department were
completed in the last week. I was supposed to read different journals and articles and
write a report on the relationship of Pakistan with some other country. Secondly I will
Ummad Hassan
ID No.15114954-030 44
be writing a report which will contain sector analysis of sports goods industry
including all its particulars respectively.
Weekly Report: 4th week (16-09-2016 to 22-09-2016)

December to 14December
This week was a busy week because of lot of event happening in this week. A visitor
from U.S. came and visit the all the department of the company.
A meeting session with the owner of the Co.
 In this you have to learn how to deal with different people.

 You got the experience about the recording of transaction.
 You have learned country trade relation with other countries.
 Ways to improve the quality.

Describe principal tasks and duties to be performed and accomplishments during the
upcoming week.
Ummad Hassan
ID No.15114954-030 44
Empower others to make significant decisions.
Provide instructional guidance.
Develop and implement strategic and school improvement plans.
The review suggests that leaders who set a clear sense of direction have the greatest
impact. If these leaders help to develop among their staff members a shared
understanding of the organization and its goals and activities, this understanding
becomes the basis for a sense of purpose or vision.

December to 22 December
This week was full of principle task and responsibilities as for the first time I had to
maintain the accounts book practically. The other responsibility was to write minutes
of meeting of core issues. Principals themselves agree almost unanimously on the
importance of several specific practices, workers and professional development needs
and monitoring work.
This experience has been a life changing one. I feel that I got out of my protected area
and became an independent, confident and strong woman who can survive life’s
Ummad Hassan
ID No.15114954-030 44
challenges on her own. A man who knows what he wants, and what he is capable of.
They were and are supportive in all my decisions and they stand by me all the way.

 During my internship period, I started to think of transferring my courses and finishing

 About the quality, it was hard to miss this opportunity.
 Started to actually plan.
 Writing the minutes of meeting
 Increased vocabulary
 Get experience to work in excel
Describe principal tasks and duties to be performed and accomplishments
during the upcoming week.
In the upcoming week I was informed that I’ll be having some sessions with executive
members of INTERNATIONAL BUSINESS about the aerial that is expected to be
launched very soon and the other session with secretary general of
INTERNATIONAL BUSINESS and more one session with the head of department of
R&D department about the business opportunities. The other activities will be about
visit to different department.

Ummad Hassan
ID No.15114954-030 44
Describe your principle assignments and responsibilities for week 23December to 31

December
The first and the foremost session of the week were with the executive members of the
VIP Group of Company about their initiative of launching Sialkot’s very own
business. Thereafter I had the chance to attend the session with chairman of company
I got the idea of working environment in their organizations.
 A structured work experience related to a student's major and/or career goal

 An experience that should enhance a student's academic, career, and personal
development
 Supervised by a professional in the field
 It’s important to note that to qualify as an internship the position does not have to be
labeled “internship”. Many part time jobs, volunteer opportunities, or even summer jobs
can qualify as an internship. Internships might also be called a practicum.
Quality checks to ensure quality product:
Inthegarmentindustryqualitycontrolispracticedrightfromtheinitialstageof
sourcingrawmaterialstothestageoffinalfinishedgarment.Fortextileandapparel
industryproductqualityiscalculatedintermsofqualityandstandardoffibers,yarns,
fabric construction, color fastness, surface designs and the final finished garment
products.Howeverqualityexpectationsforexportarerelatedtothetypeofcustomer
segmentsandtheretailoutlets.
Here it follows:
1. Understandingthecustomers'qualityrequirements
2. Organizing&trainingqualitycontroldepartment
3. EnsuringproperflowofqualityrequirementstotheQCdepartment
Ummad Hassan
ID No.15114954-030 44
4. EnsuringproperflowofqualityrequirementstotheProductionDepartment.
5. Establishingqualityplans,parameters,inspectionsystems,frequency,sampling
techniques,etc.6.Inspection,testing,measurementsasperplan
6. Recorddeviations
7. FeedbacktoProductionDepartment
Production:
o Performin-lineinspectionandend-of-lineinspectioninsewingfloor.
o Performinlineinspection,pre-finalauditandfinalinspectioninfinishing department.
o AuditofthepackedgoodspriortoofferingshipmenttobuyerQA.
o Responsibleforanalysisqualityreportsandprepareimprovementplan.
o Ensuringtherightqualityoftheoutwardgarmentbyconductingqualityaudits
inmanufacturingprocess
In AppendixProduction Flow Chat wasgiven;
Preparationofshippingsamples&sendingtobuyerthroughproperpacking& documentation
Shipping
Theprocedureoftransportanitem,usuallythroughtheemailShipmentisa
verybasic,commonwayofgettinganitemfromoneplacetoanother,orfromone person
to another. This process can be done physically or by transporting commodities or
cargo by land, air, and sea. Shipping sample is prepared before shipment but it is
send to buyer when final inspection is completed. This is an
importantsampletobuyerthat’swhysampledepartmenttakeextracaretomakeit.
Itissendtobuyerbyairforgoingearly.
Sending Procedure of Shipping Sample:
Making according to the measurement sheet
Ummad Hassan
ID No.15114954-030 44
 Qualitycheck.
 Ironing.
 Labelling.
 Polybagging.
 Forwardingletter.
 Measurementsheet.
 Finallyre-check.
 Sendtobuyerbycourier
Preparation of packing list after finalinspection
TherearemanykindofpackingsystemisusedinApparelIndustry.Herearemany kind of
packing system is used in Apparel Industry. Some packing name given below:
1. Flatpacking
2. Standardpacking
3. Hangerpacking
Selectionofshipping,forwarding&ConsolidationCompanyforsmooth shipment
Forwarding:
Theprocedureforcarryingoutforwardingactivities:procedureforrendering
servicesrelatedtoshipmentofcargosbyanytypesoftransportandexecutionof shipping
documents, documents for customs purposes and other documents
requiredforshipmentofcargos.
Written future business plan
Abusinessplanisadocumentthatispreparedinordertoorganizethebusiness's operations,
forecast financial performance, set financial and operational goals, attracts
investors and applies for business loans. A business plan is a written description
Ummad Hassan
ID No.15114954-030 42
of a business’s future. It reports on the environment in which the

companyoperates,explainswhatthecompanyplanstodointhenearfutureand
predictshowitwillperformfinancially
Merchandising activities on Quality control
 Themainobjectiveofqualitycontrolistoensurethatgoodsareproduced
tothefirstcustomer(DirectOrder)andhopefullytothesecondcustomer (Recorder/Alter
order/ new order) as well. If both customers can be
satisfiedthenthemanufacturerproductsaremorelikelytocontinuetobe in demand.
Satisfactory quality can only be ensured through (from the manufacturerpointofview)
 Knowingthecustomers‟needs.
 Designingtomeetthem
 Fault less construction-manufacture
 Certifiedperformanceandsafety
 Clearinstructionmanuals
 Suitablepacking
 Promptdelivery.
 Feedbackoffieldexperience.
Satisfactionqualitycanbeensuredfromthecustomerfromthe customer’s
pointofviewbyproviding:
 RightProduct
 RightQuality
 RightTime
 UndamagedCondition
Summary oflearning:
4.7.1.Whatskillsandqualificationsyouthinkthatyouhavegainedfromthe internship?
Ummad Hassan
ID No.15114954-030 42
Skills:
During my internship period, I learned some of the skills which would

otherwisenotpossibletolearn.Trulyquoting,Ihavelearnedmorein6weeksperiod
ofmyinternshipthaninclassroom.TheskillswhichIhavelearnedareasfollows:
Logic or reasoning:
Logics have for most importance place in practical life. In practical life,
withouttheinterferenceoflogicalstatementsandreasoningwecannotperformour duty
effectively. In my course of internship, I also tried my best to give the logical
explanationtoworkerstomakethe mender standaboutmywaydoingwork.
Languages:
Englishasaforeignlanguageisaworldwidebusinessspeakinglanguage.I
metwithforeigncustomersduringmyinternshipandlearnedalotaboutEnglish.
Before my internship, I had been finding English a tough job especially with
Pakistanis but with English speaking people I felt confident and I spoke fluently
without any hesitation. Secondly, I also learned pure Punjabi during my course.
Workers from adjoining areas of Sialkot have different speaking styles, so I also
foundthatspeakingintheirlanguagemadethemmorecomfortable.HenceIlearned
differentlanguagesduringmyinternship.
Team Work:
During my MCOM courseparticipatedingrouppresentationsbut did not learn

thepracticalwayofdoingteamwork.Iworkedintanningprocesswithteamand
observedandhowtheyweredoingtheirexcellentjobwithoutdelayfromanyside.
Distribution:
Ummad Hassan
ID No.15114954-030 42
Iobservedthathowleatherwasdistributedtootherdepartmentswithoutany wastage oftime
Resolving Energy Crisis:
VIP has been fulfilling his demand of power through different alternative
meanslikesolarpanelsandgenerators.SoVIPPVTLTDmademetolearnhowto set time
table against load shedding and how to manage electricity during load shedding.
Public Relations with Locals through Social Projects:
VIPbelievesinsocialrelationshipswithpublic.Forthisreason,companyhas been
providing initiatives to locals or general public. For example, public water
plants,donationsforSialkotAirport,donationsforNandiPurPowerProject.
Own Business:
Aftertheperiodof7weeksandlearningalotfromthecompanyenablesme
tostartupmyowntanningunit.
Moreover Experience the merchandising work, firstly merchandiser do the

protosamplethencustomerrequesteddoamenintheproductthendosecond
samplecalledsms(salemansample)thencustomergivecommentonit.Aftersms
customergiveorder;thenproductionstartandlastmerchandisermakearrangement
ofLC&shipmentviaorair&seacontainer.
Howtomail a different customer fordifferent work task. Everycustomerhas

adifferentstylerequirementinsamplesorinproduct.
Experiencethathowtocheckthejacketsitslining,leather,stitching,zipper’s,
Measurement(Trims)etc.
Experiencetheleatherselectingprocess.Typesofleather,qualitygauge
colouretc.
Ummad Hassan
ID No.15114954-030 42
UnderstandingtheLC(LetterofCredit)processwhatprocesswerefollowing
opening theLC.
Understandtheroleoflogisticsdepartment(polybagshangtags,packing,
cartons,hanging,etc.)
Learn that how to fill the container.
Whatkindofresponsibilitiesyouhaveundertakenduringtheinternship period?
The key responsibilities of a Merchandiser are handling orders at three stages.
1. Contactingcustomersforfutureorders
 Protosample
 Price andcosting
 Salesmansamples
 Approvalsamples
2. NewOrder
 Necessaryarrangementsofrawmaterialandaccessories
3. RunningOrder
 Tofrequentlyvisitproductiondepartmentsforverificationofqualityand
workmanship
 Tomakesureorderisrunningsmoothlytillshipment.
 Solveproblemduringdifferentproductionactivities.
 Involveindecisionmakingatvariousstagesateachstepinproduction.
 Involveinapprovalprocessofrawmaterialandtrims.
Ummad Hassan
ID No.15114954-030 42
 Involveinleatherselectionprocessfordifferentstylerunninginproduction.
 Handle theroutineproblemswhilemailingthecustomers.
 Meetingwithotherseniormerchandiserwholethecompany;andwetake
overtheiraccounts(customers)andgatherallinformationabouttheircustomers.
 Checkstheweeklyproductionworkswhilevisittheproductiondepartment.
 Makepackingplanofdifferentstylewithlogisticshead.
Howdoyouthinktheinternshipwillinfluenceyourfuturecareerplans?
My OwnBusiness:
I want to start a business of leather industries from scratch. So I did my

internshipfromVIPPVTLTDaboutbasicworkathighlevelhenceIwillgoabroadto get
customers to support my business. There, I will have to make my customers
satisfied if and only if I would know about leather industry. Due to this, I have
properlyplannedeverythingformyfuturecareer.
What to sell and where to sell:
InmyinternshipperiodIhavelearnedaboutinternationalmarketandIfound
thatUSACanadaAustraliaJapanGermanyFranceandUAEarethemaincountries
whereleatherproductsareusedmorefrequentlybythen actives. SoIwillchooseone
ofthesecountriestodobusiness.
Howdoyouthinktheinternshipactivitiesthatyoucarriedoutare
correlatedwithyourclassroomknowledge?
Ummad Hassan
ID No.15114954-030 42
Internship activates that I carried from real organization are some correlated
withclassworkorknowledge.Inorganizationonlyfewthings arefollowedwhichwe
studyinclassroom.Mostlyworkdoneinorganizationareownmanagementstyle.In
classroomonlylearnthetheorybutinrealorganizationthataresomechangeswith
classroomlearning.
InmyclassIlearnedaboutMaslowhierarchychartandobservedthatmostof
workersareavailingthepsychologicalneeds.AnotherwellusedterminologywhichI
learned I classroom was motivation and I saw that authorities motivates workers
throughdifferentlogicalexplanation.
English speaking:
I studied English in my first and second semester of MCOM theoretical work.
Practical work was done at factory when I spoke with English speaking people.
Law:
IlearnedbusinesslawandduringinternshipIobservedtheagreementsand
contractspractically.
Layout Plans:
At the factory I effectively observed the layout plan of the factory. I was
impressedbyitinmy 3rdsemesterIstudiedthelayoutplaninproductionand
operationalmanagement.
Economics:
Ummad Hassan
ID No.15114954-030 42
IneconomicsIstudiedaboutleatherindustrysituationinPakistanwhichI
practicallysawinleatherindustryduringinternship.
Communicationskills:
InsubjectcommunicationskillI studiedaboutgesturepostureand
givingpresentationsofprojectswhichIsawinVIPPVTLTDbusinessmeetings.
Sociology:
I studied in sociology about capitalism, socialism and communism etc. So I

amsuretosaythatinPakistanCapitalis misruling approach.Industrialsareearning
billionsofrupeesbuttheworkersareearninglow income Paris ontoinvestors.Dueto
thisgap,workerstrytodeceivetheorganizationeverytime.
CHAPTER 5
5. Conclusion
5.1 In conclusion I can say that this internship report is really essential for every
student of business studies to get idea about textile industry. By completing this
reportIhavegotoverallideaofleathergarmentsectorandthesemaybehelpfulto know
about the technical and management knowledge of garments industry also these
sector related organizations. This is a huge sector and yet to discover the
wholeObservation
I also made following observations during my internship time:
 Marketing
Ummad Hassan
ID No.15114954-030 42
 Merchandising
 Production
 Learningofworkenvironment
 Learningofmeasurementsofjackets
 Learningabouthowtodealwiththecustomers
 QualityControl
 FinalLeatherisprepared
 Types ofleather
 Distributionofleathertodifferentdepartment
 ObservingtheSocialwork
 Understandingthelaborandtheirproblems
 Learningofpreparejoborders,costsheets,etc.
SWOTAnalysis
Strengths
(a) VIP has a department which continually works on new designs. Their main
functionissearchingfornewdesignsandcheckingwhetherithasapotential to
capturemarket;
(b) WorkersofVIPwearsareverydedicatedandhardworking.
(c) VIPhasveryskilledandcompetent labor.Itcanbeseenfromtheinstalled capacity and
productivity of the workers. Secondly it also offers training to
keepitsworkersuptodate.
(d) ProfitsandsalesofVIPwearsareveryhigh.Therefore,financialpositionof
VIPwearsisverysound.Itcaneasilygetloanfromanyfinancialinstitution.
Ummad Hassan
ID No.15114954-030 59
(e) VIPWearshasstrongpublicrelations.Militarypersonnel,politicians,foreign
ambassadorsandmanyotherhighprofilepersonalitiesvisitthefirm.
(f) Advancetechnologyinprocurement.
(g) TrackrecordofSuccessful.
(h) ImplementationatotherE&Poperators
(i) Enhancedefficiencyateachprocurementstage.
(j) Providingtransportationfacilitiestoworkers.
(k) Initiativestogovernmentandprivateprojects
Weaknesses
(a) Hugedatamanagementrequired.
(b) Additionalinvestmentrequired.
(c) Whenelectricityorgasisshutdown,wholework-in-processmaterialis wastedduetothis
breakout ofelectricityorgas.
(d) Capitalis miss followed.
(e) Distantunitsfromheadoffice.
(f) NoEmergencytreatmentsforworkers.
Opportunities
(a) Reductioninadministrative costs.

(b) TrendofLeatherisincreasingintheeconomy.Ithasgreatlystimulatedthe demand
ofLeather.
(c) Tendering&biddingprocessmoreconvenient.
(d) Receivingrebateonannualexport.
(e) Goodrelationshipwithgovernmentofficials.
(f) Goodrelationshipswithgeneralpublic.
Ummad Hassan
ID No.15114954-030 59
(g) Businessexpendsallovertheworld.
Threats
(a) Internalstaffmayberigidtoworkinchangedsystem
(b) Inflation.
(c) Lackofsupplierssupportmaypreventachievingdesiredbenefits.
(d) Movementoftanneryoutofthecity.
(e) Disputeswithpoliticalparties.
(f) Borrowingfrombanks.
(g) Terrorism.
(h) Energy crises.
CHAPTER 6
6. Recommendation
VIP WEAR (PVT) Limited is the largest leather group in Pakistan. It has outstanding
reputation in the global market for excellence. It is a composite factory where
they have all the sectors of leather and knit item like Lining, waxing, dyeing,
printing,embroidery,accessories,andgarmentsproduction.So,thisishugeincase of
production and maintenance both. However, this huge organization is not facing
profit due to many of reasons what I have observed from the internship period-
Supply chain or procurement department is not very strong in this company which
causesthatthemerchandisersprocurealltherawmaterialsofgarmentsthat’swhy
theyfeelmorepressuretocompleteshipmentandsometimealsoovertheshipment date
then company should pay the extra money for air shipment. So when supply chain
Ummad Hassan
ID No.15114954-030 59
department procure all the raw materials then merchandiser can easily
shipmentthegoodswithinleadtime.
Planningdepartmentofoperationshouldbestrongandthetimemanagementshould be
followed. Here, productivity is low due to less command of the authority towards
theproduction.Itshouldbeincreasedforthehigherproductivity.
Qualityassurancesystemshouldbemodernizedbecausequalityisthetoppriorityof
allinternationalbuyers.
Workingenvironmentshouldbeincreased
Payscaleisverypoorwhichisneededtobeincreasedbecausecompanywilllose
potentialemployeesduetotheirpolicy.
Distributionofpowershouldbewellmanagedandtransparencyamongtheworkers
andthemanagementshouldbefollowed.
TheorganizationisoneofthebiggestorganizationsinBangladeshandcontributing
thehighestamountofGDPintheeconomybutifitfollowstheseareasthenitwillbe
amongthegreatestintheregion.
Disposingoffwastageproperly.
ShouldfollowtheteachingsofIslamratherthancapitalism.
Shouldusefuelsuptominimumleveltoovercometheenergydemand.
Alldepartmentsshouldbeattachedwithheadofficetoreduceexpenses.
Safetyofworkersshouldbeensured.
Emergencymedicationshouldbeprovided.
Shouldavoidpoliticsbyallmeans.
Bankborrowingshouldcomedowntominimumlevel.
Moreinitiativestoworkersthanofficials.
Ummad Hassan
ID No.15114954-030 61
Theymustpaytraineeduringtheauditandotherassignmentthat’sawayappreciate
atraineeandarticlestudents.
Theymustincreasethesalariesoftheirlowerstaff.
Increasetheirtargetarea.Andopeningthenewbranchesandprovidetheservices out ofcity.
TheymustadoptthenewTechnologyandsavetimebecausemanual work takes a
extratimeandTechnologysavetimeandtimeismoney.
CHAPTER 7
7. References:
www.vipwears.com
VIPGroupPVTLimited.Sialkot-PakistanonVIPWEARS (Pvt.) Limited. LinkedIn
www.pagespak.com/company-leather_garments-vip_wearspvtlimited_-sialkot-
146739.html
vipkhi.weebly.com/company-profile.html dargroup.biz/contact.php
CHAPTER 9
8. Annexure:
 InternshipLetter
 ProductLine
 CompanyLayout
 OrganizationHierarchy
 Weekly TimeTable
Ummad Hassan
ID No.15114954-030 62
 Production FlowChart
Ummad Hassan
ID No.15114954-030 63

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UNIVERSITY OF GUJRAT SIALKOT SUB CAMPUS

Faculty of Management & Administrative Sciences

Name: Ummad Hassan

Roll No: 15114954-030

M.COM 3rd Semester (ACC or FIN)

Evaluation of Thesis/ Report/ Project

Department Name: COMMERCE

Student Name: UMMAD HASSAN

Roll No: 15114954-030

Session: Morning (2015 2017)

Topic: Internship Report at VIP WEARS Company

Credit Hours: Three

Supervisor: Mam, SAIRA BANO

Marks Obtained By the Student

Head of Department: Mr. Asjad Maqsood Sandhu

Ummad Hassan ID No.15114954-030 3

1. Introduction and Profile ofIndustry .......................................................................................... 9

SA 8000 setsbasicstandards .............................................................................................. 37

Introduction ofalldepartments ........................................................................................... 45

Comments onOrganizationalStructure .................................................................................... 46

Brief Introduction ofinternee’soffice/branch .......................................................................... 50

INTERNSHIP WEEKLYPROGRESSREPORT .......................................................................

INTERNSHIP WEEKLYPROGRESSREPORT ................................................................... 52

INTERNSHIP WEEKLYPROGRESSREPORT ................................................................... 52

INTERNSHIP WEEKLYPROGRESSREPORT ................................................................... 55

Detail description of the operations/activities .................................................................. 56

Howdoyouthinktheinternshipactivitiesthatyoucarriedout are correlated with

1. Introduction and Profile of Industry:

Objectives that I want to achieve:

The objectives of this report are as follow

 It necessary document for future.

LimitationreferstheobstaclesI haven’t ofa coffer completingthisreportandwhatI

2. Overview of the Organization:

Introduction/ History of VIPWears;

Manufacturing organizations perform various important roles in the economy.

They utilize themanpowerandotherresourcestopromoteandsupportvarious sectors in

WeareoneofthemajorexportersofLeatherGarments/LeatherHandBags from Pakistan.

OurTanneryisalsolocatedinKarachiwherewearemakingleatherforboth units and we

VIP Group is a division of creative solution and true wearable art. We

Honors and Awards:

Goals & Objectives:

Finally,forsmoothworkingofthecompany,itisnecessarytohaveco-ordination among all

VIP Groups has a vast range of Motorbike wears which includes:

Motorbikeshoesareproducedinsyntheticaswells as theticleatherwith rubbersoles.

Motorbike jackets are produced in leather and polyester cordura fabric in a

Motorbikeracing/ridings one timesresultsinaccidentsandinjuriesandto protect from these

VIP is also offering a large number of workplace safety products including:

VIPWear(PVT) Limited specializeinvarioustypesofLeatherGarmentsfor instance

FINANCIAL RATIO ANALYSIS

2011 2012 2013 2014

Liabilities against assets subject to 76 0% 30 0% 24 0% 13 0%

Share capital 16,818 1% 18,500 1% 21,275 2% 21,275 1%

Other income 5,653 6% 6,298 6% 7,064 7% 8,234 7%

2011 11Vs10 2012 12Vs11 2013 13Vs12 2014 14Vs13

Total assets 1,149,578 11% 1,309,528 14% 1,364,926 4% 1,543,054 13%

NETASSETS 132,651 3% 139,981 6% 156,287 12% 178,329 14%

Current ratio=current asset / current liabilities

Current asset 266,403,372 275,183,048 309,551,824

Current liabilities 96,254,591 134,380,906 109,151,918

Current ratio 2.05

Debt Ratio = Total liabilities / Total Assets

Total Liabilities 19,012,206 1159,982,395 1211,054,416