CHAPTER NO.

1
INTRODUCTION AND OBJECTIVE OF
ORGANIZATION

1
 CHAPTER NO.1
INTRODUCTION AND OBJECTIVE OF ORGANIZATION
1.1 INTRODUCTION
Bismillah Textile is a complete vertical unit with all processes ranging from yarn-procurement to
packaging since 1989 and it employs a centralized computerized system, which handles all aspects
of operations. Textile sector is one of the key sources of incomes, which contributes more than
45% of the Pakistan’s earnings in our economy. In the race of involvement towards Textile Exports
of Pakistan, the contribution of Faisalabad at international levels is unrivaled. Bismillah Textile
(Pvt.) Ltd is also playing its contribution in economy to some extent.

The company is principally engaged in manufacture and distribution of clothing, goods, including,
all sort of curtains, Kid’s bedding, Fashion bedding, Traditional bedding, Basic bedding, Kitchen
articles and curtains, etc.

Moreover, the operation team of Bismillah Textile comprises highly skilled and trained
professionals including qualified engineers. This project will enhance the value of money for
customers by offering rates that are even more competitive to our clients. Bismillah Textile is
currently operating a very large linking section with the help of computerized linking machines
and is able to offer the finest quality.

Bismillah textile is located in Faisalabad, the textile city of Pakistan. Its production facilities
includes the completely manufacturing process starting from weaving to dyeing bleaching,
printing, and facilities.

2
1.2 OBJECTIVES OF STUDING ORGANIZATION

Textile sector is the backbone of our country. Our major export are consisting of textile
goods following are the basic objects of studying the Organization.
 To get insight into textile industry with analysis
 To compare bookish study with practical producing
 Application of the knowledge gained during education
 To understand the business environment
 To develop new concepts and test the learned concepts
 To understand textile exports sector, which is the backbone of Pakistan economy
 To observed the practical procedures adopt by the finance, and account official of
Bismillah textile.
 To study the strength & weakness in the functional area of finance and account
department.

3
 CHAPTER NO.2
OVERVIEW OF THE ORGANIZATION

4
 Chapter no.2
OVERVIEW OF THE ORGANIZATION
2.1 Brief History

Bismillah textile Vertical textile mill

Main Focused Home textile

Start Business 1989

Bismillah’s first year closing sale was not more than one million dollars today Bismillah’s sale is
more than thirty-five million dollars. Bismillah have different manufacturing units located in
different city of Faisalabad, the company add cuts sew, weaving, spinning, yarn, dyeing into it
operations. Now a day, the company is enjoying a unique icon in Pakistan textile industry. It is not
only one of the top company in term of capacity, but also leading in high value added products.
Faisalabad yarn market is largest Asia’s famous yarn market in Pakistan. It is situated in the heart
of Pakistan (Faisalabad), in khurrianwala. Bismillah’s purchase office is situated in that market.
The chairman of Bismillah, Abdul Majeed Sheikh, with his large experience and most brilliant
reputation, make it sure that what are the company’s requirement of yarn, fabrics are met in a
professional and in effective manner. The commitment toward become the leader in this industries
for a long period of time, the company now set a new setup a very high and efficient, technological
cuts sew plant, which have doubled the capacity of products production system.

2.2 Vision Statement

“The vision is to achieve the highest quality in the more and more efficient way by employing

5
the experienced workforce and new technology without compromise on our commitment to save
the whole environment.”

2.3 Mission Statement

“The main Object of development of the company is its valuable customers. So, those Vendors,
for the company is very carefully selected on the behalf of parameters of quality, reliability, price
is consider an essential and very important partner in the company excellence.”

2.4 Core Values

Our Customer as our first priority

Corporate Social Responsibility to Enrich the Lives of community where we operate

Recognition and Reward for the talented and high performing employees

Excellence in everything we do

Integrity in all our dealings

Respect for our customers and each other

2.5 Number of Employees

6
The present work force strength of the company is 1250 including management, executives,
supervisors and other staff and workers. The department and location wise strength.

Location Department
Admin Export Accounts Production Purchase HR TOTAL
Head office 43 13 45 0 3 5 109

Weaving 10 0 4 75 2 1 92

processing 49 0 5 409 3 5
471
Stitching 5 0 0 334 0 0 339

Warehouse 14 0 0 225 0 0 239

TOTAL 121 13 54 1043 8 11 1250

7
 CHAPTER NO.3
ORGANIZATION STRUCTURE

8
 Chapter no.3
ORGANIZATION STRUCTURE

3.1 Organizational Hierarchy chart

An organization‘s structure is defined as its formal framework or system of communication and

authority. The organization structure of Bismillah Textile (Pvt.) Ltd is vertical. In this type of

structure, the one person is responsible to other. The main objectives behind selecting this type of

organizational structure are as under:

 Manager is supervising the staff effectively.

 The responsibilities are divided and everyone knows what supposed to be done.

 There is less workload and every person is feeling no tension.

 Data is upgraded easily, and information is disseminated without loss of any time.

More chances of promotion in Bismillah Textile (Pvt) Ltd and people are working since many
years.

9
3.2 Organizational chart

Chief Executive Officer

General Manager General Manager General Manager General Manager

Processing Finance Export/Marketing HR

Accounts Marketing Audit

Department Department
PRODUCTION SERVICES

Costing Export Information

Department Technology

P.P.C
Purchase & H.R
Store Department

Electrical

Quality
Control

10
 CHAPTER NO.4
OVERVIEW OF BISMILLAH TEXTILE
DEPARTMENTS

11
 CHAPTER NO.4
OVERVIEW OF BISMILLAH TEXTILE DEPARTMENTS
4.1 Brief Introduction of All the Departments

The review and working of the various departments (Department Wise) in the organization is

described as under in details.

4.1.1 Human Resource Department

Human Resource Department is basically for managing human resources, and works for inducting
young blood into the organization according to the requirement and polishing the skills of already
hired staff by arranging time to time training course in training institutes.
Human Resource Department of Bismillah Textile works on centralized basis the main HR office
is situated at Head Office Karachi however to provide assistance in implementation and organizing
HR functions there is HR Manager in each region which manage the all HR related issues region
wise and report them to Head Office Karachi.

4.1.2 Costing and Budgeting Department

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

4.1.3 Production Planning and Co-ordination (PPC)

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

At Bismillah Textile, the PPC department has been subdivided into two divisions,

 Production Planning

12
  Control

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

4.1.4 Purchase Department

At Bismillah Textile, the purchase department is indirectly attached with production department.
Production department requires production material and accessories, therefore it raises demands
of materials and accessories purchase to Purchase department. The purchase department receives
those requisitions and call quotations from market and issue Purchase Orders to selected vendors.

4.1.5 Inventory Department

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

4.1.6 Processing Department

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

 Weaving Department
 Bleaching Department
 Finishing Department
 Printing Department
 Dyeing Department
 Folding Department
 Quality Control Lab
 Digital Design Studio & Embroidery Department
 Sample Room
 Warding Department.

13
4.1.7 Cutting Department

Fabrics are cut according to the requirement of the end customers with the help of work force as
well as lasted automatic cutting machines of GGT and Glummer that are computerized, just the
design of cutting is save in the computer, and automatic cutting starts.

4.1.8 Finance & Accounts Department

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

A Brief introduction of Accounts & Finance functions include:

 Provides financial support services to the entire organization.

 Provides timely and accurate financial reporting.
 Processes receivables, payables and payroll.
 Grant and intergovernmental revenue administration.
 Banking relations.
 Debt service analysis and bond payments.
 Administration of special assessments.
 Risk management and loss control.
 Implementation of financial and internal controls.

4.1.9 Information Technology (IT) Department

No doubt, this is an IT age and without it, not even a single organization can survive in today’s
competitive workplace. Information Technology Department is playing very helpful and
supportive role in smoothly daily working of the Firm. At Bismillah Textile every department is
interconnected with each other with the help of quality integrated computerized system.

14
 CHAPTER NO.5
PLAN OF MY INTERNSHIP PROGRAM

15
 CHAPTER NO.5
PLAN OF MY INTERNSHIP PROGRAM

5.1 PLAN OF INTERNSHIP PROGRAM

5.1.1 A Brief Introduction of Branch Where I Did My Internship

I completed my internship at Bismillah Textile (Pvt.) Ltd Jaranwala Road, near 1 k.m khurianwala
Faisalabad, Pakistan. Bismillah Textile consists of 1200 to 1250 employees in which contractual
and permanent staff both are included. This organization is situated in good place and good
environment is found around. Whole staff was cooperative and helped me out in learning complete
process of Textile.

5.1.2 Starting and Ending Dates of my Internship

My internship period at the Bismillah Textile (Pvt) Limited started from June 15, 2017 and ends
at August 30, 2017. During my Six weeks of training, I have completely understood all the
processes of Bismillah Textile.

5.1.3 Names of Departments in Which I Got Training

I got training in the following departments:

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

16
5.2 TRAINING PROGRAM

5.2.1 Detailed description of the tasks assigned to you during the internship program

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

5.3 Human resource department

Bismillah limited have no formal HR department, many efforts has been & is being done, to
make sure the worker’s level of the company up and up.

5.3.1 Duties

 Check files of the new employees

 Use oracle system
 To Take the application from employees
 To Take overtime of employees
 Check attendance to the employees
 Check the attendance of all employees
 To make entry card of the all employees, of organization.

Above are the duties I have performed in the Bismillah Limited as an internee.

5.3.2 Recruiting & selections of employees

17
The recruiting process is starts from where various departments needs a number of employee.
Normally HR management supports to recruit well-experienced, well-educated staff for various
seats/departments. Therefore, HR managers mostly prefer hard worker, trustable employees.

5.3.3 Selection of employees

Most of the time the selection process is complete with the consent, of upper level management.
For upper level jobs & for clerical staff’s selection is complete with the consensus of other
management’s heads.

5.3.4 Officer’s selection

Many methods are as following for top-level management selection, there are various steps are
including in the selection of officers:

 Experience
 Interview by panel list.

5.3.5 Selection of worker

There are following procedure, of selection of workers:

 Interview
 Experience.

5.3.6 Motivation & incentive

The willingness to do something is “motivation”. The workers, which are more motivated, they
have great power to do some-thing new other than the unmotivated employees. However, in
bismillah, workers are more motivated to do work with great efforts, and they get more incentives
from the organization.

18
5.4 Finance & Accounts Department

I have performed following various activities in finance and accounts department;

5.4.1 Accounts Department

At Accounts department, I have prepared different kind of vouchers i.e., for payments, I have made
Cash and Bank Payment Vouchers. For receipt, I have made Cash and Bank Receipt vouchers and
for making adjustments, I have made Journal Vouchers.

Moreover, I have issued Demand Draft and Pay order to customers as per their requirement by
making entries in system.
5.4.2 Account department functions:

 Keep Recording
 Management of cash
 Charges, bill’s payment
 Receipts of cash
 Stock-taking
 Top-management reporting
 Bank Reconciliation statement Preparation
 Deposited Income tax by Challan
 Monthly Trial Balance Preparation
 Final Account preparation
 Provides Information During the Audit
 Annual reports analysis.

19
 CHAPTER NO.6
PRODUCT AND MARKETING ANALYSIS

20
 Chapter no.6
PRODUCT AND MARKETING ANALYSIS

6.1 Marketing Mix, Marketing strategies

World has now convert in to a village because of globalization, in organizations, an organization

should be make clear strategic choice for the purpose of its positivity on the efficiency frontier.
The marketing strategy of bismillah limited is to satisfy their customer’s through its goods,
services. The exports department handles the foreign market in accurate manners. The exports
department based on experienced and skilled team of professional.
Marketing strategies its own greatness in industry & deals with overall marketing, foreign
business.
“Marketing mix is set of marketing tools, which the firms use to get its marketing objective in the
target market.”

Four p, s

 Product
 Price
 Place
 Promotion

6.1.1 Product

Bismillah textile is committed to produce and achieve excellent high qualities products

 Curtains
 Kid’s bedding
 Fashion bedding
 Traditional bedding. Basic bedding
 Kitchen articles.

21
“As a fully integrated manufacturer the company products range is extensive.”

6.1.2 Price

Pricing is a very important factor in the marketing process for any organization.

There are two main elements, which are as following;

 Fixed Cost
 Variable Cost.
 Fixed Cost

“Fixed cost is that which remained same totally either producing a large number of products.”

There are some important elements of fixed cost, which are as following;

 Wages and salaries

 Rent
 Taxes
 Cost related to machines
 cost of building
 Electricity change
 Insurance expense.
 Variable Costs

“Variable cost changes in total, with the change in quantity produced. It increases with the level
of activity increase, per unit variable cost remains same whether to produce large or small
quantity.”

 Materials Cost
 F0H
 Part time employees
 Transport Charges
 Miscellaneous-expenses.


22
6.1.3 Place / Distribution

 Direct Channel
 Indirect Channel.
 Direct channels

Bismillah textile dealing with their customers directly. All types of customer’s foreign, local both
contact with the company directly. The transporter helps in the delivery of products. The delivery
to customers is the greatest service by the company, on time delivery is more important for the
success, development of the organization.

 Indirect channel

Bismillah textile to agent- to customer. In the export of products, the agents are the backbone of
textile industry. Company receive order on the behalf of buyer. They receive their commission
from the buyers, seller. Mostly Bismillah export its products through ship. They are many methods
of transportation.

6.1.4 Promotions

 Bismillah promoting its product in a limited extent

 Providing broachers to the customers
 providing the free sample of yarn to the customer
 Direct contact with foreign agents & the local
 Visits to the customers
 Provide valid Information to the customers that help in promoting.

23
6.2 Core Competencies

The Core competency of firm as following;

 Technologies
 .Labor work Force
 Facilities,
 Marketing Experience.

According to the management of one factor based on that, they are actually competing in market
that is technological factor, which they are using in their products. Overall the history of the
organization management have pride themselves, in the great relationship to the employees.
Facilities of the organization are one of the major competency of the organization. The firms are
located in Faisalabad; one kilometer main-jaranwala road fsd Khurrianwala Pakistan so they can
be easily approach to the main customers & suppliers. Similarly, the experience of market is an-
other core competency.

24
 CHAPTER NO.7
SWOT & PEST ANALYSIS

25
 CHAPTER NO.7
SWOT & PEST ANALYSIS
7.1 SWOT Analysis

The very important factor that effect an organization, which is environment, that is why most of
the managerial staff of an organization are always beware from the environmental changes. They
also have a deep eye on the How the government rules and regulations are effect the organization.
For the analysis of environment managers are used the technique of SWOT analysis that provides
information about the organization strength, weaknesses, opportunities, and threats.

7.1.1 Strengths
well-skilled lobour force

Bismillah textile ltd. hired the skilled workers for the development of standards of quality, not all
workers are well experienced and educated but they have a large number of skilled level staff in
organization.
Experienced marketing managers

Well-experienced marketing managers are recruited by the organization. With the use of their
vast experience, marketing managers increase the level of organization.

Qualified finance staff

Accounts staff is well educated because of there is person is under bachelor in accounts
department; managers are high professional & have the degree of “charter accountant”.

Sound policies

Bismillah textile makes sound policies for organization workers for the development of quality
products & production.

Computerized organization
26
Bismillah textile uses a computerized system for recording of employee’s data, not use more
paper work some organization used this method, bismillah is not use it.

Adequate financial resources

Adequate financial resources also ensure the strength of bismillah textile provides and maintains
the financial resources that secures the company’s position in the market place.

7.1.2 Weaknesses:
Rely upon foreign customer:

Bismillah is mostly targeting other country’s customer, not Pakistani customers. If there is a
shortage of foreign customers that is weakness of an organization.

Not enjoying the economies of scale:

Bismillah is not enjoying the economics of scale, because of it targeting only a small number of
customers in the international market. Due to only one targeted market, the results are less
production.
Focus on foreign market:

The bismillah is mostly relying on foreign markets, & not to local market. If any organization fails
in completing the products order on time of the foreign-market.
Then no option is there because it is not targeting the local-market.

7.1.3 Opportunities:

27
Local market potential:

It is the best opportunity, for bismillah to targeted the local market due to failure in foreign
markets it also help in that time,
Untapped market of china:

The market of china is largest on the other hand the bismillah is not tapped this market, the
earning from those market increased the business volume of the company yearly.

Advertising growth:

The advertisement of product, made by and organization in the local markets as well as in
foreign market where there is not targeted.

7.1.4 Threats:

New entrants:

The entrants of newly firms, in the same market places where organization is running. The threat
create by high wages & low prices, in the markets of the “new entrants,
Political instability:

Political6instability in any country is1the greatest threat, for the bismillah because, quota3system
of6export restricts8by govt.
Tough competition:
Because of large number of competitor in market of bismillah. Little-bit problems can push back
the company from the market on a very low level of products.
Pricing fluctuation:

The prices, of material are increasing day by day in Pakistan. So it, effecting bismillah efficiency,
in the production-system.

7.2 PEST Analysis

28
7.2.1 Political Instability:

The political situations, of Pakistan are not satisfactory, because of the rapidly changes in the
Government rules and regulations, every government set their own trade policies in country.

7.2.2 Economic Situation:

The economic condition of Pakistan, can also effect on the foreign investors increasing the
inflation rate, make production cost high & decrease the profit margin of the investors.

7.2.3 Social Situation:

The change in the lifestyle of the people, affects the growing demand of the bismillah textile,
Products. The change in the lifestyle and needs in different demographics affect the demand of the
customers. Due to all these changes organization, is performing excellent for the excellence
organization as well as for the customers.

7.2.4 Technological factor:

Technological development in all the sectors of the country has changed the completely socio-
economic environment. Particularly in the textile sector, a lot of technological development is
there, excellent computerized machinery and devices are install in the organization.

29
 CHAPTER NO.8
FINANCIAL ANALYSIS

Chapter no.8
30
 FINANCIAL ANALYSIS
Financial analysis is the process of identifying the financial strength and weakness of a firm by
properly establishing the relationship between the items of balance sheet and income statement.
The nature of analysis is depending on the purpose of analyst, such analysis is of special interest
to the following parties;

 Bankers
 Investors
 Owners
 Management.

8.1 BALANCE SHEET

Balance sheet is a summary of firm financial position on the given date that shows
the total assets of the firm and total liabilities of the firm and owner equity.

Total liabilities + Owner equity =Total Assets

Balance sheet

31
 As at 30 June 2015

Assets 2014 2015

Non-current assets

Property plant 3025599 3149557

Long term advance 6004 4816
Long term security 16338 12242
3047941 3166615

Current Assets
366850 432437
Store spare parts and tools 1838707 1727771
Stock in trade 1933875 3197857
Short term deposits 166415 146124
Loan in advance 165391 180689
Other receivables 577987 449220
Cash & bank balance 137255 321026
Trade debt

Total assets 8234421 9621739

Balance sheet

32
 As at 30 June 2015
Liabilities 2014 2015
Equity & Liabilities

Total equity 1811300 2138446

Surplus & revaluation of operating fix assets 379420 379420
Deferred income on operating fix assets 4891 2515

Non-current liabilities 1769245 1672877

Long term financing 219851 128071
Liabilities against assets 107789 148770
Deferred liabilities for gratuity

Current liabilities
Trade and other payables 906159 1201683
Accrued mark up 84911 196958
Short term borrowing 2621724 3285109
Current portion of non-current liabilities 254874 269485
Provision for taxation 74257 98405

Total liabilities 6038810 7101358

Total equity and liabilities 8234421 9621739

8.2 Vertical analysis

33
Vertical analysis are the analysis of percentage financial statements where all balance sheet items
are divided by the total assets and all income statement items are divided by net sale or revenue.it
is called vertical analysis.

Assets 2014 2015

Non-current assets

Property plant 0.37 0.33

Long term advance 0.0007 0.0005
Long term security 0.001 0.001

Current Assets

Store spare parts and tools 0.04 0.04

Stock in trade 0.22 0.17
Short term deposits 0.23 0.33
Loan in advance 0.02 0.01
Other receivables 0.02 0.02
Cash & bank balance 0.07 0.05
Trade debt 0.02 0.03

Total assets 100 100

Liabilities 2014 2015

34
 Equity & Liabilities

Total equity 0.22 0.22

Surplus & revaluation of operating fix assets 0.05 0.04
Deferred income on operating fix assets 0.000594 0.0003

Non-current liabilities 0.21 0.17

Long term financing 0.03 0.01
Liabilities against assets 0.01 0.02
Deferred liabilities for gratuity

Current liabilities
Trade and other payables 0.11 0.12
Accrued mark up 0.01 0.02
Short term borrowing 0.31 0.34
Current portion of non-current liabilities 0.03 0.04
Provision for taxation 0.00941 0.01

Total liabilities 0.73 0.74

Total equity and liabilities 100 100

Explanation
The measurement of vertical analysis of balance sheet from 2014 to 2015 shows that fixed assets
are increased which shows the favorable conditions for company. The total liabilities that are
shown in the balance sheet recommend the favorable conditions for company due to decreasing
trend in the total liabilities.

35
8.3 Horizontal analysis
Horizontal analysis are the analysis of percentage financial statements where are the balance
sheet figures for the base year equal 100% and subsequent financial statements items are the
expressed as percentage their values in the base year. It is called horizontal analysis.

Assets 2014 2015

Non-current assets

Property plant 100 1.0409

Long term advance 100 0.8021
Long term security 100 0.75

Current Assets
100 1.1788
Store spare parts and tools 100 0.9397
Stock in trade 100 1.654
Short term deposits 100 0.8835
Loan in advance 100 1.085
Other receivables 100 0.777
Cash & bank balance 100 2.3389
Trade debt

Total assets 100 116.84

36
 Liabilities 2014 2015
Equity & Liabilities

Total equity 100 1.1806

Surplus & revaluation of operating fix assets 100 100
Deferred income on operating fix assets 100 0.5242

Non-current liabilities 100 0.9455

Long term financing 100 0.5825
Liabilities against assets 100 1.3802
Deferred liabilities for gratuity

Current liabilities 100 1.3261

Trade and other payables 100 2.3195
Accrued mark up 100 2.3195
Short term borrowing 100 1.4497
Current portion of non-current liabilities 100 1.3251
Provision for taxation

Total equity and liabilities 100 116.85

Explanation
The measurement of Horizontal analysis of balance sheet from 2014 to 2015 shows that fixed
assets are increased which shows the favorable conditions for company. The total liabilities that
are showing in the balance sheet recommend the favorable conditions for company due to
decreasing trend in the total liabilities.

8.4 Organizational analysis

Bismillah textile is a private limited company and not quoted at stock exchange in Pakistan so that
due to this reason organizational analysis is not possible.

37
CHAPTER NO.9
RATIO ANALYSIS

38
 Chapter no.9
RATIO ANALYSIS
9.1 Ratio analysis

Ratio analysis is very useful approach to keep the management, shareholders and creditors in
making various decisions about company. Financial Ratios used to evaluate the operating
performance of a firm. They provide a meaningful comparison of a company to its industry. These
ratios can be used to measure profitability, asset utilization, liquidity and debt utilization.

For analysis of the financial statements, ratios can classified as follows.

 Liquidity Ratio
 Profitability Ratio
 Activity Ratio
 Solvency Ratio

The ratios measures the ability of the company to pay its current and short-term liabilities.

9.1 Liquidity Ratio

 Current ratio
 Quick Ratio/Acid test Ratio

9.1.1 Current Ratio

Current ratio may defined as the relationship between current asset and current liabilities. It is a
measure of general liquidity and is most widely used to make the analysis for a short-term financial
position or liquidity of a firm. It is calculate by dividing the total of the current assets by total of
the current liabilities.

Current Assets / current Liabilities

Current Ratio = (Current Assets/Current liabilities)

YEAR: 2015 1.27

YEAR: 2014 1.32

39
9.1.2 Quick Ratio/Acid Test Ratio
This ratio is also termed as “acid test ratio” or Quick ratio. It is the ratio of liquid assets to current
liabilities. The true ‘liquidity’ refers to the ability of a firm to pay its short-term obligations as
and when they become due.

Liquid assets= (current assets- inventory)/Current liabilities

YEAR: 2015 .539:1

YEAR: 2014 .574:1

It showing the decreasing trend in Quick assets over the quick liabilities of the company.

9.2 Profitability Ratios

Profitability ratios analysis helps to evaluate the firms earning with respect to the given level of

sales. Without profit, a firm cannot attract the outside capital. Following profitability ratios

calculated to analyze the profitability of company.

 Gross profit ratio

 Operating profit ratio
 Net profit ratio

9.2.1 Gross profit margin = Gross profit/sales*100

YEAR: 2015 18.67%

YEAR: 2014 19.69%

40
Gross profit ratio shows the favorable conditions in 2014 due to increase in G.P, but it decreased

in 2015.

9.2.2 Operating profit Ratio = operating profit/sales*100

YEAR: 2015 8.07%

YEAR: 2014 7.96%

Gross profit ratio shows the favorable conditions due to increase in Operating Profit but it

decreased in 2014.

9.2.3 Net profit ratio = net profit/sales*100

YEAR: 2015 2.46%

YEAR: 2014 3.09%

Net profit ratio includes Unfavorable conditions in 2015 due to decreasing trend in net profit over
net sales.

Therefore, the company performance is satisfactory in term of profit.

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 CHAPTER NO.10
CONCLUSION & RECOMMENDATIONS

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 CHAPTER NO.10

CONCLUSION & RECOMMENDATIONS

10.1 Conclusion

From the Above-mentioned data one can easily evaluate conclude or can give his/her opinion about
Textile Industry of Pakistan and about Bismillah Textiles Growth. I as an internee have proud-
upon me that I get an opportunity to work in a company where I found a corporate environment,
competitive environment and gets chance to polish my skills among quality crew of bismillah
Textile ltd. I hope company will achieve its long-term goals of World’s Best Textile Company.

In this era of technology, the “Information” is the key to success in the business. This means that
the successful businessperson will be who will have the right information at the right time. The
overall analysis is indicating that the company’s progress has mainly attained through dedication
of employees. The effectiveness of its management, their willingness to take advantage of
opportunities and face challenges of changing economic.

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10.2 Recommendations

 Full utilization of available resources.

 Remove the loose tolls & old spindle machines that is “white elephant”.
 Proper uses of energy powers, & to avoid power breakdowns.
 Special incentives should be given to workers Head on Eid and on other special days.
 Proper incentive plan for the workers/employees.
 Proper use of quality-control system for the purpose of upward of demand.
 Complete control over the financial expenses.
 Protective measures for the workers & machinery must be introduced.
 Well-defined Internship Program Should introduced for the Internees.
 Website should be updated.

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10.3 References and sources

 Bismillah Textile (Pvt) Limited website: www.Bismillahtextile.com

 Documents of managers

 Mr. Muhammad Nabeel (HR officer) Bismillah Textile (Pvt) Ltd.

 Discuss with the staff.

For ratio analysis

 Fundamental of Financial management (James c. Van horn)

 Advance Accounting (Sohail Ahmad)

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