INTERNSHIP REPORT From: 30th JUNE 2011 to SUBMITTED BY: Muhammad Kamran MCM-F09-SF-02 M.

COM INTERNSHIP SUPERVISOR: Sir Haroon HEAD OF THE DEPARTMENT: Ch. Shaan Muhammed INTERNSHIP CONDUCTED AT: Saad Textile (pvt.) Limited U N I V E R S I T Y O F S A R G O D H A S A R G O D H PREFACE Being a student of M.COM it is an integral and inevitable part of my studies to get internship in an organization to be get experience in my field of study to b e oriented with the present status. This provides me an immense opportunity to e valuate myself in the practically exercised philosophies where I can explore my qualities. The internship is also a part of that drive to infuse that corporate confidence and grace me with practical insight well before the time I may embarking on my j ourney in the practical life. I have completed my internship in the SAAD textile mill Lahore, where I have got this opportunity to observe the difference between the theoretical and practica l worlds from a very close quarter as to there lay a gulf between the theoretica l and applied approaches. 18th SEPTEMBER 2011

DEDECATION The Holy Prophet Muhammad (S.A.W.) The greater Social reformer and guide in ever y aspect of life. My affectionate parents who did hard wok for me day night and supported me morally and financially throughout my studies. And The Great Teachers who co-ordinate me in every trouble and especially Dedica te to my Great Teacher Malik Muhammad Hayyat who did my support as like I am the child of him. He dont know but how I forgot the blessing upon me. I wish to dedicate my Report to my Dearest and have the all in one quality my el der brother Mr. Shafaat Ali. Who always support me when I need.

ACKNOWLEDGEMENT In the name of Allah, the most merciful and beneficent I would like to thank Almighty Allah who made me able to complete this internshi p report by utilizing my skills and knowledge. I am also thankful for giving me spirit of patience, consistency and courage during my internship. I am also grateful to the University Of Sargodha, provided me a chance to explor e my skills, qualities, abilities and potentials through internship program. I a m also thankful to my teachers for giving me chance to show the best of my abili ties during the period of my internship. At Saad Textile Industries limited, I would like to thank Mr.Malik Ehsan ul Haq, GM who provided me full opportunity to start internship and accumulate first ha nd comprehensive information during my internship. I am also obliged to different persons like Mr. Mushtaq, Mr. Munir Mr. Asif Mr. Amir Mr. Zohaib Butt Mr. Abdul Zahoor who provided ever information I needed during the course of my internshi p. Last but not the least, I am also thankful to my elder brother and best friend o f mine Mr. Liaqat Ali whose management experience and tips regarding internship are always helpful for me. Without these encouragement and guidance it might not be possible for me to complete my M.Com so successfully and smoothly. I am resp onsible for errors and mistakes presented in the report and a positive and const ructive criticism will always be welcome. Executive Summary SAAD has grown from a cotton export house into the premier business group of Pak istan with 5 listed companies, concentrating on 4 core businesses; Textiles, Cem ent, Banking and Power Generation. Today, SAAD is considered to be at par with m ultinationals operating locally in terms of its quality products and management skills. I recently have done my internship in SAAD Mills Limited, in which I got trainin g from each of its department. The internship basically revolved around the prod uct knowledge training. The system, the style of working & the commitment of the employees in SML is really exemplary. The difference between the success & failure is doing things right and doing thi ngs nearly right, & SML has always tried for success & that is why it is known t o be one of the leading organizations in Pakistan. Irrespective of all these pos itive points of SAAD Mills Limited, I have noticed a few areas where the improve ment can really increase the efficiency of SML. In this report I have given a very brief review of what I have seen during our i nternship I have mentioned all these as I have made an internship as according t o the schedule. I also mentioned about the Textile industry in Pakistan and visi on of its industry. Then I have done a detailed SWOT analysis. Then I have discussed about my learning in the whole internship that is all abou t the Textile Terminologies and process of the productions. I have made it possi ble to write each and every thing that I have learnt there. I have all my practi cal efforts in the form of this manuscript thats the asset for my future career. Contents TOPIC 1. Page No. Introduction

2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Overview of Organization Main features Organizational Structure Work done by me Financial Analysis SWOT Analysis Conclusion Recommendation Limitation Bibliography Annexes Glossary

INTRODUCTION 1.1. The Textile Industry: Over the years, Pakistan is said to be the single crop economy i.e. cotton and t extile that claims the lion s share in terms of the contribution in the national economy of Pakistan. Despite efforts to bring in diversification in country s overall economic get-up the textile sector continues to be the most important segment of the national e conomy. Its share in the economy, in terms of GDP, exports, employment, foreign exchange earnings, investment and revenue generation altogether placed the texti le industry as the single largest determinant of the economic growth of the coun try. Despite harsh and hard international economic conditions, Pakistan s textile ind ustry has weathered the storm by coming out of the international crisis in a ver y positive manner. During the year exports were controlled from falling and significant investment was made in value-added expansion and in Balancing-Modernization- Replacement (B MR). Besides fall out of the events of September 11, the implementation of WTO s agre ement, various bilateral agreements have been signed and implemented. As a result global scenario has changed. Government and the corporate textile se ctor adjusted their policies to achieve maximum benefits of free trade. So, loca l structure of the corporate culture, investment pattern and fiscal and monetary policies were significantly changed.

1. OVERVIEW OF SAAD TEXTILE (PVT) LIMITED 2.1 Brief History of Saad Textile: The Company had inaugurated in 1992 and brought the 22 Soulzer looms after this in 1996 the Saad Textile pvt limited also brought more 50 looms and now the tota l number of looms in SML have 151 looms. There is also have a Towel manufacturing. In 2000 the SML brought 22 looms and a fter fulfilling the customer requirements now the SML has 12 advanced Sumet Loom s which providing the high quality Towel products. And SML growing rapidly and h ave the motive to provide high quality products in Towel as well as Fabric. Saad Textile Mills is a high class, modern and well equipped unit which speciali zes in production of towels, bathrobes and other woven terry and sheeting fabric products. It has been in business for more than two decades. At Saad textiles we take pride in the quality of our products, all of which are exported to various parts of the globe with particular emphasis on the European

market. In addition, greige sheeting fabric is supplied in the local market as w ell to Europe. 2.2. Nature of the Organization Saad Textile Mills Limited a fabric woven with tender care and dyed in the brill iant shades of nature adds elegance and magnificence to this world. Saad Textile is a manufacturer of such fabulous fabrics& Towel: fabrics & Towel that speaks of unparallel quality and unmatched comfort. Saad Textile specialize s in producing high class fabric & Towel product made of superior quality materi als and possesses state production facilities in made ups and fabrics for variou s consumer needs. The company makes use of the latest technical equipment to mak e sure that each product is original in style and shows exquisite craftsmanship. Saad Textile is a company believes in originality as character and quality as f oundation. The entrepreneurial spirit of the company assiduously seeks constant development, steady progress and outstanding performance. 2.2.1 Mission Statement Of Saad Textile Mills: The mission statement of Saad Textile Mills is to produce and supply top quality terry products at competitive market rates. 2.3. Main Features of SML Saad TEXTILE MILLS LTD is ranked as one of the best composite textile in Pakista n having a finishing capacity of 25000 Meters daily in form of Bleached, Dyed & Fabric and in Towel Area 5000 kg daily production. All the products are being ex ported in shape of Bleached, Dyed & Printed Piece Goods and Home Textile Product s including Towel products like Plain Dyed Towels, yarn dyed towels, Embroidered Towels, velour sheets, printed towels, bath mats, bath robes. Saad Textile Mills Limited is a customer driven company which believe in continu ous improvement in its products. We all the times provide our customers a growin g range of products to meet their changing needs. Our trend-setting products inc lude Fabrics as well Towel. We focus on specialty, value-added products that sta nd out in a mass marketplace. 2.4 Major competitors Saad Textile competitors are Crescent Chenab M.K Sons Alkarms Sitara Kohinoor Amtex Fine Textile Organizational Hierarchy Chart

3.0 ORGANIZATIONAL STRUCTURE 3.1 company profile: CHIEF EXECUTIVE Mr. Mian Parvaiz BOARD OF DIRECTORS: Mr. Saad Mr. Habib Mr. Iftikhar Khurshid General Manager: Malik Ehsan ul Haq FINANCE DEPARTMENT: Mr. Asad

AUDIT COMMITTEE: Mr. Mukhtar HEAD OF INTERNAL AUDIT: Mr. Muhammad Munir AUDITING COMPANIES: Prime Mark SGH LEGAL ADVISOR: Malik Ehsaan ul Haq BANKERS TO THE COMPANY: Habib Metropliton MCB Faisal Bank 3.2 Employee of Saad Textile Mills Fabric; 350 employees are working in Fabric Area. Towel: 150 employees are working in Towel Area. 3.3 Main Offices of Saad Textile Mills Limited: Factory office of Saad Textile : Saad Textile pvt Limited 8 km Manga Raiwand Road Lahore Head Office of Saad Textile : 1 Km Defence Road Comsat University Bhoptian Chowk Lahore. Business operations in Fabric Weaving Greiy Room PROCESSING Singeing Desizing Scouring Bleaching Dyeing Finishing Folding Weaving Department: Very similar to the spinning units, the weaving units of SML are really very wel l equipped with the latest machinery to make the best possible product for the c ustomer to gain the customer satisfaction. Most of the machines in the weaving unit of SML are of new technology & SML has a very good check on the quality of fabric produced by its Quality Control depar tment. The end product of the spinning unit is the starting point of the weaving unit. When the cones of the yarn are brought to weaving unit, it is then taken to the warping zone in which the beams are prepared. These beams are then taken to the sizing section where the different chemicals a re applied to the yarn so that the weaving of the fabric can be done with the mi nimum breakage of yarn. After sizing the process of drawing inn is applied so th at the yarn could be converted into fabric. After the drawing inn the beams of the yarn is then taken to the Sulzer Looms so that the yarn is converted into the weaved product. When the greige is made, th en it is taken to the inspection department, where a lot of quality check is don e. At the first step the fabric is classified into two types, i.e. A grade & D g rade. The D grade fabric is either used in the B grade sale or in gathering of the fre sh pieces. While the process of A grade fabric is a bit longer. The A grade fabric after mending, goes to the checking machines, from where it i s taken to the rechecking machines. After rechecking either the greige is rolled or folded & packed according to requirements of the buyer. During all the above process, quality is the main purpose of the SML people. The weaving units of SML check the product quality as under:

Quality Control Department: First of all the people of SML checks the quality of yarn before taking it into the process. Following are the yarn characteristics that are checked before taki ng it into the process: Count Testing Strength Testing Hairiness Testing Thick & Thin bases At the warping section the following characteristic is checked: Breakage Report When the sizing process is applied, the following two tests are applied: Strength Test After completion of the greige the g/sm test is applied so that to have the best customized product. Finally in the folding section checks are applied at every step of the folding process. The weaving units of SML are known to be the best p roducers of greige product in Pakistan. QUALITY CONTROL LAB: During the production, quality control lab ensures that every work has done acco rding to the standards of SML. Following checks are made at different department s: Checks while Printing: Rubbing Washing Dry Cleaning Chlorine Test Checks after Curing: Rubbing Washing Checks after Stenter Process: Light Fastness Shrinkage Rubbing Washing (Optional) Pilling Checks after Raising: Quality check The purpose of all these checks is to ensure the Quality of the end product. QUALITY CONTROL LAB MACHINES: Crock Meter: Pilling Machine: Garment Washing Machine: Dura Wash: Wascator Machine Thumble Dryer Light Box Auto Wash Curing Machine Pader Light Fastner Tester Air Permea-meter Data Color Visco Meter The above are the machine which is used in the Quality Control Lab to ensure the quality at every step. Processing Department: Processing Unit of every textile mill has a paramount importance because it actu ally provide the finish fabric product which is either sent to customer either a s a piece good or as made up after converting the fabric into the required stitc

hed product. The processing unit of SML comprises of the following department: Bleaching Department Finishing Department Printing Department Dyeing Department Folding Department Quality Control Lab Sample Room Production & Planning Department The operations of Production & Planning Department are to work as a bridge betwe en the marketing team and the processing people, so this department has the prim e importance. All of the communication which is held between the processing & the export peopl e is done through this department. The finishing department is also very importa nt because it is the center of operations held in the processing unit. A brief overview on the Processing capacity of SML has been discussed as follow: Bleaching Department: The bleaching department of SML is equipped with the latest machinery to compete with the market. Bleaching department has the following machines: Singeing & De-sizing: L-Box: Mercerizing: Emerizing: Jigger: Water Mangle: The above are the machines & a very brief overview of the machines. The bleachin g department is like a back bone of the processing unit. After weaving mill, the fabric is brought to the bleaching department where it is prepared on the above machines so as to be prepared for the Printing or Dyeing. The Quality Control people ensure the Quality of work in the Bleaching to fulfil l the collective goal. Dyeing Department: The dyeing department is a major department of SML processing. This includes thr ee machines. These machines have been identified & discussed as below: Pad Thermo sol: Pad Steam: Goller Soaper Washing: So above is a birds eye view on the dyeing department of SML. Finishing Department: Finishing department of any textile mill has a very significant importance becau se it acts like a hub in the Processing. Almost every fabric which goes through processing unit, it has to be passed through the finishing department. The finishing department of SML Processing unit is famous for its quality work. It comprises of many latest machines which includes Stenters, Cylinders, Raising Machines & Sanforizing Machine. Types of Finishes: There are two major types of finishes: Chemical Finishes Mechanical Finishes The finishes in which no chemical is used is called the mechanical finish, a ver y good example of mechanical finish is Calender Finish. On the other hand the fi nishes through stenter are known to be the chemical finish. The finishes are of the following types: Normal Soft Super Soft Chintz Anti Pilling Anti Wrinkle Water Proof

Easy Care Soil Repellent

Sanforizing Machine: The Sanforizing machine is used for relaxing the shrinkage of warp. The machine possessed by SML has a workable width of 114. It is basically used either on cust omer demand or in case of Garments. The standard is 5%. NML has one Sanforizing machine in its processing unit. Raising Machine: This basically means to raise the fibers from the surface of the fabric. The mac hine possessed by the finishing department of SML has a workable width of 114. SM L has one raising machine in its processing unit. Calender: SML has 2 Cylinders. The basic purpose of calendaring is to have the shine & to have better hand feel. These Cylinders are of two different lengths, the workabl e width of the Cylinders is 100 & 111 respectively. The above is a brief introduction of the Finishing department of SML. Folding Department: The folding department of the SML has a daily production of 25000m. The folding department is the last department of the Processing Unit. After the folding unit the fabric is transferred to GSC. The folding department has two kinds of machines; the kind is rolling machine wh ile the other kind is of folding machines. It depends on the requirement that wh ich kind of machine would be used. In the folding department of SML latest 4 score method is used for the inspectio n purposes. Quality checks are made at every step of processing unit. Engraving Department: The Engraving Department of Saad Textile Mills Limited is equipped with the late st machinery along with the manual machinery for the process of exposing. In the Engraving Department of SML, the screens are generally prepared which are then used in the printing process. Sizes of the Screens: Following are the three repeats of screens which are used in the Engraving Depar tment: 640mm 820mm 914mm Similarly the widths of the screens are of the following five kinds: 3030mm 2650mm 1850mm 1620mm 1280mm Process: 1. Coating Stage: The first step which is taken in the formation of the screens is to coat the scr een with SCR 100. This coating is done for the purpose of blocking the meshes of the screen so that the required king of design can be made through the screen. The coating of the screen takes almost 8-9 minutes. 2. Heating Stage: These screens are then heated in the ovens so that to carry out the process in t he best possible manner. When the screens are heated in the proper way then they are taken to the exposing machines. The heat is provided to the screens so that

to fix the SCR 100 so that the exposing stage should be started. 3. Exposing Stage: Saad Textile Mills Limited has two exposing machines, one of them is manual and the other is fully automatic. The automatic machine is the wax jet. The process of exposing stage is different for both the machines. In the process of Manual Machine, it is quite a time taking process. In this mac hine, the presence of machine operator is very important; otherwise the time for each screen will be higher than the original one. Earlier most of the work was done through this machine but now the major load ha s been shifted to was jet. Irrespective of these facts the importance of this mach ine is still there. All sizes and widths of the screens can be prepared through this machine. Basica lly the manual machine is used for the word of design studio. The Wax Jet machine is fully automatic. The work done through the digital design s tudio is done through this automatic machine. The speed of exposing through this machine is relatively higher than the manual machine because there is not such need of operator at every stage of the exposing. The process at this machine does not effect because of the presence of the opera tor. The exposing is being done through the wax on this machine that is why it h as such a name. The mechanism of this machine is that the machine is linked with the digital des ign studio, so the operator can access any of the prepared design in the studio. Then the wax is applied on the screen in such a way that the wax is applied on that place from where the operator want to open the meshes. Then the lighting pr ocess is done i.e. the screen goes through high power light. The result of this process is that the place where only coating is there and the re is no wax, at these places the coating got fixed in such a way that the meshe s are blocked in a better way. After this Exposing stage the screen is taken to the next stage. SML has ordered for ink jet machine which will enhance the production capability o f the engraving department. 4. Washing Stage: The screens are then taken from the exposing machines to the washing area. This is the area where the screens are washed so that the black portion can be washed from the screens. This is also called the Developing Stage. The screens are the n kept on the light stand to see that whether the results are satisfactory or no t. When the staff feels that the design is satisfactory then they send this scre en to the heating machine for curing. 5. Curing Stage: The curing is being done through an oven. The screens are kept about 20-25 minut es in the oven. This heat fixes the design on the screen so that after the final touch the screen can be sent to the next department. 6. Endring Stage: During this stage the ring type iron is fixed on both the sides of the screens s o that the screens could be taken to the printing department for printing. 7. Touching Stage During the touching stage the final work is done. In this stage if there is any extra patch on the screen, then they are blocked with SCR52 so that the correct effect can be drawn on the fabric. This is the final stage of Engraving Departme nt. After this step, the screens are then taken to printing department. Design Studio The design studio is a very important department of Processing Unit. The importa nce of design studio is because of the reason that without its right work nothin g correct can be done. The presence of good design studio is very important for any good textile export organization. The buyer sends the desired design in the following forms: Through Sketches Through Fabric Sample Through CD

 swages Now after having the concept of design, it is then the responsibility of design department to make the screen design, to select the sizes of the screen, to sele ct the repeats of the screens and most importantly to make the films and designs so that to have the same designs during the printing process as required by the buyer. In the digital design studio the work is being done through the latest machineri es and software and dedicated and educated persons are there for the purpose car rying out the process. All of the work in this studio is done on the latest mach ines and the work can be accessed through the Wax Jet machine. In the other design studio, the work is being done through the experienced perso ns. In that studio the guideline is the first thing which is made at the start. After this step, there comes a chain in the design studio such as to separate th e colors up to making and preparing the films which can be used in the engraving department. Stitching Department: SML has one stitching unit. Situated in Defence Lahore. The bedding section and as well as complete unit Lahore which is involved in all kinds of stitching. CUTTING DEPARTMENT: The cutting department is the first department of GSC, which takes the fabric. T he fabric, which is to be stitched, is brought from the folding department to th e cutting department. In this department the fabric is cut according to the spec ifications & need. From the cutting department the fabric is transferred to the store from where the fabric is issued on the required floor according to the fre ezing plan. The cutting department objectives Quality control Cutting Minimize Wastage So cutting department was performing these responsibilities. Mr. Arif the Cuttin g supervisor who shared the rules of cutting that is the foundation of the compl ete stitching department. Those are One: LENTH FOR LENGTH (L*L) Two: WIDTH FOR LENGTH (W*L) The Process flow of cutting department is as below SAMPLE PROGRAMME CUTTING Stitching Department (GSC) Stitching department is one of the well equipped machines department in the fiel d of the Textile in Pakistan thats why there are most of the loyal customers of t he Saad from all over the world specially WALL MART, TARGET and TARGET. These ar e the major have chain of stores around the world. 724 helpers are daily wages working as quality checker in the whole stitching de partment. 400 stitching machines in the whole stitching unit. Every machine oper ator 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 Types of stitching LOCK STITCH, CHAIN STITCH, TWIN NEEDLE, WORK STATION Blind stitch Over lock

Flat lock

Dispatch Department Dispatch department is performing two functions WARE HOUSE, MAID-UP DISPATCH Dispatch department is responsible to dispatch all types of Export after packing . It depends on the marketing department when it should be dispatched. Its not n ecessary to dispatch daily. Dispatch department is to pack and dispatch report p reparation the prime responsibility is to make maid-ups dispatch Report. Dispatch 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. Work force is use for loading or shipping in cont ainer. Container Type: Twenty fitter lengths Forty STD 8.5 feet length Forty STD = 9.5 height. From cutting to dispatch process is as below Cutting stitching Packing dispatch Export Marketing Department: The export department of Saad Mills Limited is known to be the best marketing de partment in the whole textile industry because of the commitment and dedication of employees, the determination of work & the best management system. SML Marketing has a very strong liaison with their customers around the world. T hats why SML has different segments on the basis of different regions like North America, Australia and Europe. Every region has a different Export Manager and its whole staff. The marketing r esponsibility is not only to just sales and marketing it has also to find out ne w horizons and new ways. Thats why Managers visit to new Markets around the world . Letter of Credit Letter of credit is the conditional undertaking on the request of the importer/b uyer. It is also called documentary credit defined as; A written undertaking by the bank of importer i.e. issuing bank at the request of buyer or importer to make payments at sight or at determinable future date up t o stated sum of money within prescribed time against stipulated documents. Parties are involved in the payment of the goods, i.e., the buyer, buyers bank, beneficiary, L.C. advising bank. After clearance of the export documents, export department negotiate the papers with bank receive payments from the bank. Then SML local bank sends documents to the buyer bank and foreign bank release payment to SML bank with the permission of the buyer. QUOTA SYSTEM Most of the customers are American and U.S. Government allocate quota to third w orld. Infect quota is a quantitative restriction and more than that can t be shi pped to America from a particular country CLAIM FOR REBATE Rebate is actually a "Duty Draw Back". The duty which an importer pays to govern ment for the product that is re-exported after some process, then government pay s back some of its part. This pay back of duty is called rebate. MARKETING STRATEGY The past year has been tough for the textile industry as competition is steadily and margin of profits is becoming smaller day-by-day. Our competitors from Asia have come up in a big way with lower prices resulting from lower overhead, chea per and better raw materials and machinery. Countries like China, Indonesia, India and Bangladesh played an active role in t

he fabric market. Improvement in quality and production capability was the main area of concentration. Market for Yarns and Grey fabrics was diversified to increase the customer base and reduce dependency on the Far East. In this effort business with Malaysia, Ko rea, Taiwan, UK and South America was initiated in case of Yarns. In case of Grey Fabric market business was initiated in South Africa, North Amer ica, Japan, Italy, France, and Sri Lanka etc. Product range was also increased t o cater to the differing needs of the buyers. Fancy and special items like Dobby Designs, Bedford Cords, and Cavairy Twills and stretch fabrics were developed w hich are being sold at premium prices. SML has constantly updated our machinery, replacing old machines with new ones u pgrading the existing set-up, leading to better efficiencies and quality product s. Saad has established its name in new markets be creating specialized fabrics, d esigns and also by providing our customers with efficient service and excellent quality. Leaving behind the traditional way of doing business and in our journey towards excellent it has consistently expanded its buyer base and explored the different markets around the world. Keeping in view demand of the World market, Saad Mills Ltd pursued its strategy of value addition and reducing the dependency on Grey Fabrics and Grey Yarn. Having the foresight to assess that in coming years value addition will be the th ing of the future, Saad Mills Limited worked towards the achievement of its goal of future increasing its capability in value addition. The export of processed fabric and made-Ups has shown market improvement as comp ared to last year. Our strength in Europe is the curtain division. This included yarn dyed dobbies, engineered confections, different finishes and embellished products. The plan is to continue with this winning strategy and at the same time we are trying to find new clients in the high end. The opportunities are limitless, we have to review and analyze them very thoroug hly to associates with the right people in the long run. In the short term we ar e building a small amount of quota, which will give us recognition as a bedding supplier. Marketing process Inquiry costing quote to customer Check Greige Processing cost per delivery Approval received Lab dips/strike sample P.O received/Sales Contract sent Greige booking Dying/printing program issue Fabric processed Shipment sample dispatched for approval Shipment sample approve Shipment dispatched Work done by me It was a tremendous experience that I have availed with devotion and commitment. I have an interest in textile industry thats because Textile is the back bone of the economy of the country. But one thing I want to share its not easy that loo ks it has a great toughness and complications in its process but the overall it was nice and great. Here I am sharing some of my learning regarding my internshi p in different departments. In the spinning unit I have learnt about the yarn construction and the yarn spec ification and the process of cotton to yarn. I learnt that every problem is solved with a systematic process like from the ro ot of the problem. I also performed some task in the Weaving department like how to calculate the n o of frames for a specific order and how many days are require for a specific or der.

I learnt about the marketing procedure and required of the documents and dealing with customers. All the record is saved. During my internship I learnt about the value that customer is the only who come first. The fulfillment of the demand of customer is our basic motive. The quality control as well inception in the textile department should be parall el. I learnt about the Management policies that how many types of hiring SAAD textil e limited is using. And what are the procedures of the SAAD about HR matters. I learnt that in the textile sector the cutting and stitching based on two rules (Length) (Length) (width) (Length)

Financial Analysis: 2006 2007 200 2009 2010 Sales 612,068,314 647,978,220 741,567,558 861,596,730 919,018, 288 Cost of goods sold 536,031,063 563,707,401 660,374,753 681,340, 306 743,086,387 Gross Profit 76,037,251 84,270,819 81,192,805 180,348,965 175,931,901 Administrative & selling expenses 25,659,825 16,308,521 19,474,2 67 51,208,900 71,362,031 Operating profit 50,687,436 67,962,298 61,718,538 129,140, 065 104,725,641 Other income 310,010 509,723 1,620,621 1,831,269 670,630 Financial charges 45,555,669 50,887,297 43,615,193 39,007,6 23 51,552,054 Workers profit participation 259,108 883,693 993,039 4,602,364 2,720,19 0 Net Profit Before Tax 4,872,659 16,701,033 18,730,927 87,361,3 47 51,124,027 Provision for taxation 317,000 2,028,645 16,734,429 12,264,7 02 Net Profit After Tax 5,189,659 16,701,033 16,702,282 70,626,9 18 38,859,325 Financial resources: Total revenues 535,665,708 100 100 863,520,540 100 Raw Material cost 382,677,637 774 63.63 435,035,663 50.38 Operating expenses 16,647,234 78 4.96 51,208,900 5.93 Financial expenses 45,380,760 93 5.73 39,007,623 4.52 Net profit before tax (1,515,984) 27 2.46 87,361,347 10.12 612,378,324 71.44 3.11 8.47 100 761,144,590 70.06 4.19 7.47 0.80 984,503, 37,733,6 43,615,1 18,730,9

429,073,224 25,695,825 45,555,669

(0.28) 4,872,659

Financial ratios: Financial Ratios 2006 Cost of goods sold % of sales

2007 87.6

2008 85.1

2009 86.9

2010 79.1

82

Gross profit % of sales 12.4 14.8 Operating profit % of sales 8.23 Net profit before tax % of sales Net profit after tax % of sales 0.85 Stock % of sales 3.15 8.97 Current ratio 0.64 0.26 0.82 Quick ratio 0.72 0.72 0.43 Debt equity ratio 1.05 1.05 Total debt asset ratio 0.51 0.51 Earning per share Common size income statement: 2006 2007 2008 Net Sales 100 100 Less CGS 87.58 85.13 Gross Profit 12.42 14.87 Less Operating Expenses 4.19 Net Operating profit 8.23 Less Interest Expenses 07.44 Plus Non-operating Income Profit before tax 0.79 Income tax 0.052 0.09 Net Profit after tax 0.74 2009 100 86.91 13.09 4.98 9.98 9.89 0.79 2.67 0.27 2.67

13.1 9.89 0.8 2.52 13 1.05 0.68 1.22 0.55 2.78

20.9 8.12 2.52 2.2 6.64 1.06 0.57 0.72 0.42 11.8

19.1 14.8 2.46 8.2 9.17 0.78 0.46 -

11.4 10.1 4.2

5.5

100 79.08 20.92 4.97 8.12 5.74 7.31 2.59 1.94 2.32

5.93 14.99 4.53 0.21 10.67 8.73

0.21

SWOT Analysis Strengths: The basic strength of SML is to provide high quality Towel, bathrobe. High quality product Latest mechanized machinery. Tremendous market positioning Highly qualified and skilled management Highly Motivated Workforce Adequate financial resources Competitive advantage Own power generation plant SML always work on innovative ideas regarding customer satisfaction Employees are committed on Quality product. Social security is available for employee. Weaknesses: SML has not Spinning Department. Due to absence of Spinning Department it bears the high cost. Centralized decision making Environment pollution destroys the health of Employees. No proper Safety measures are available. Weak image in the international market Small international market share Less promotional activities Lack of benefits and rewards for the employees No compensation plan Bonuses are not available Opportunity: Organization Organization Organization Organization Can Can Can Can expand product lines capture new market segments around the world reduce the cost by proper utilization of resources hire more well-educated and experienced person

Threats: New Entry of competitors Buyer needs demands changes Political instability Changed of government policies Globally Economic instability Detail of SWOT Analysis Strengths: Strong Security System SAAD textile limited has a greater security system. There are different hidden s ecurity cameras which capture the all moments. OKTEX 100: SAAD is also Oktex 100 certified its mean that SAAD is satisfied to not using ha zard chemical using. High quality product: SAAD textile limited using advance technology like they have modern machinery by which the quality of product produced is very high. Latest mechanized machinery. They are using modern looms which they have purchased from Japan and France. And by using that latest machinery the productivity of the employees are very high. Tremendous market positioning: SAAD textile is one of the pioneer textiles in the Pakistan so it got the positi on in the mind of its customer. And being an old textile company people are loya l with it. SAAD has a better position in the mind of its customers. Highly qualified and skilled management: The management of SAAD is skilled they have hired the foreign graduate people in their management and also experienced people from all over the country. Highly Motivated Workforce: They are providing better pay to their employees and also bonus to them which mo tivate the workforce and they are doing well at work setting. Adequate financial resources: The owner of the SAAD is one of the richest persons of the Pakistan and they hav e more plant and investment in other industries like cement, Bank, They have ade quate financial resources to meet their requirements. Competitive advantage: Because it is an old textile and it has still keep its position in the textile m arket on all others competitors in the nation wide which is its competitive adva ntage. Equipped with MIS System: They have a management information system by which the departments and employees are connect with each other and they have a data ware house by which they can s hare their resources easily. Own power generation plant: They have own power generation plant and SAAD is the pioneer in the private orga nization who start the power generation. And also selling to the WAPDA its produ ced power. Weaknesses: High cost of production: The production cost is high because of not properly utilization of its resources . Centralized decision making: The decisions are made by the upper management which is weakness of the SAAD bec ause they have no proper idea about the situation and their decision can be not fruitful for the company. Weak image in the international market Because of the other textile specialized countries like China, Bangladesh etc th e international image in the textile sector is very weak. Those countries provi

ding cheap product to the market then Pakistans textile industries. Small international market share: Although SAAD has very strong in the national wide but it has small market share in the global textile industry due to the sound competitors like china, and Ban gladesh etc Less promotional activities: The advertising and promotional cost of the SAAD textile is very low it can take advantage for more turnouts. Lack of benefits and rewards for the employees: Some facilities that other providing to their employees like Transport and medic al fee etc SAAD not providing to their employees because of which the productivi ty of the employees decrease. Opportunity: Organization Can expand product lines: Currently the SAAD not dealing in knitwear they can expand their product line by producing knitwear. They have plants and the extra cost for the production will be low for SAAD. And they also have better market repute. Organization Can reduce the cost by proper utilization of resources: If the cost of different matters which is not utilizing properly is controlled b y the SAAD management they can produce more in a few costs. It has to develop a further systematic process for controlling and managing resources. Organization Can hire more well-educated and experienced person: They can take advantages by hiring more skilled people and they should hire youn g, fresh and energetic staff for their betterment. Threats: Buyer needs demands changes: Because of the research and development the design and the product of SAAD is ju st satisfactory as compare to competitors in the globally and they are not fulfi lling the demand of customer. Political instability: Political instability effects the SAAD because of the quota system the company c an be restrict by the government to export. Changed of government policies: Government policies are changing day to day so it is a threat for the SAAD to su rvive in such a changeable situation. Globally Economic instability: Because of the economic instability the SAAD affected a lot. Dumping system whic h is rising on daily basis in the world can create many problems for the company and any uncertainty in the world like 9/11 may affect also the overall export. Conclusion SAAD Mills Limited is one of the leading groups in Pakistan. The system, the man agement style, the policies & decentralized decision making environment is reall y remarkable. This report is basically an attempt to identify the areas which ne ed to be improved. 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 infor mation at the right time. This comment leads to the conclusion that the Informat ion Sharing Process should really be improved. The overall analysis is indicating that the companys progress has mainly attained through dedication of employees. The effectiveness of its management, their wil lingness to take advantage of opportunities and face challenges of changing econ omic 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 Recommendations

Recommendations for Improvements are: I recommend Saad Textile Mill to distribute the controls from upper management to lower management. At present facility of bonus is given only to production staff but such incentiv es should also be given to Head office Staff. Special incentives should also be given to Head on Eid and on other special days should be given to the workers. Medical facilities are given in mill but such facilities should also be given to management. Different training courses should be arranged for the up lifting and improving t he quality of work for employees They provide transportation facility to only female employees I think male shoul d also be provided with conveyance convenience. This will create the easiness fo r workers and reduce the wastage of time. There is also a problem of work overload for the employees and it should be cont rol properly so that the employees are motivated. Employees should be paid extra for the work which they done after working hours. Limitation During preparing this report I faced the following difficulties. 1. The main and top of the list difficulty which I face is the breakdown of electricity. 2. Difficulty in collecting data 3. I spend lot of time on computer which badly effect my health. Bibliography: Following are the major sources which I used in preparing this report. Article and Reports www.SML.com.pk Annual reports of SML Staff of the SML. ANNEXES GLOSSARY