Table of contents

Company profile History Introduction Literature servey Analysis of responsis Conclusion Swot analysis Recommendations Bibliography

Company Profile
Crescent Textile Mills is a Faisalabad based textile unit. The company was listed at stock exchange in 1951. Crescent Textile Mills is engaged in the business of textile manufacturing of spinning, weaving, dyeing, bleaching, printing, made ups and otherwise dealing in yarn and fabrics. Flagship of large crescent group, CTMs main area of business is in textile. As a composite unit having ISO-9002 certification on 1997, which is engaged in spinning, weaving, processing and is one of the largest exporters of cotton yarn in Pakistan. The pioneer of Crescent Textile Mills was Mian Muhammad Shafi, who belonged to Chinyot. Crescent Textile Mills started as a weaving unit with 500 semi auto looms. Now the present picture of Crescent Textile Mills is that it is the one of the largest textile units in Pakistan. Now Crescent Textile Mills has seven independent complete units of spinning, 184 weaving sulzer looms, one separate unit of towel & one complete unit of garments. Crescent Textile Mills has one of the largest textile-processing units with a capacity of 2.5 million meters fabric monthly. The electricity consumed by Crescent Textile Mills is produced by its own power station located within the boundary of Crescent Textile Mills. All spinning, weaving, towel, processing and garment units are located within the same boundary. The total no of employees are more than 5000 from which 2000 employees are staff and on permanent basis. Factory runs complete 24 hrs a day and employees work in three-day and night shifts of 8 hours. Crescent Textile Mills was established in 1951 as a private limited company. Crescent Textile Mills was converted into a public limited company in 1958. The crescent group effectively controls the company. In the context of Pakistan, Crescent Textile Mills stands out for the composite

nature of its activities. Superior quality standards with ISO 9002 certificate management is committed to expand into the higher value added areas of industry. Crescent Textile Mills is playing a vital role in the development of Pakistan specially by earning a huge foreign exchange through exports. Crescent Textile Mills sells more than 80% of its products to the foreign market. In 1992-93 & 1994, the Crescent Textile Mills was awarded the President of Pakistan Trophy for export, given to the largest exporter from Pakistan in any category.

Historical Perspective
The Crescent Textile Mills Ltd was incorporated and set up in FSD as a public limited company. It is one of the fist few textile mills to be established in the country, and also the first unit of the crescent group. The Crescent Textile Mills Ltd is situated on Sargodha Road, at an area spread on 115 acres of land; and from the very inception, it had been designed as an integrated unit. It commenced its business operations in 1951 with 50316 spindles, 500 auto looms and finishing capacity of nearly 4000 meters per day. In the mid 50s sponsor of the company decided to divert its production exclusively towards exports and became the pioneer company to have commenced export of cloths fromPakistan in 1956. With the passage of time, the company grew in stature and its sponsors became to be known as crescent family. The period up to mid 60s was also the period of growth of the family businesses as the sponsors/ crescent family diversified their investments to more textile companies, sugar mills, jute mills, larger trading houses, shipping etc. and so the crescent family came to be known as the crescent group. As years road on, the Crescent Textile Mills Ltd continued to expand its exports and earned the reputation of being the leading exporter of yarn, fabric and various products in the home textile sector. The companys prosperity broad about a better quality of life for those who worked for it. The company provides accommodation for its employees, staff and executives as well as plays grounds, parks shops, community centers, and

industrial homes for their welfare. It insures that its work force is happy and their families are well cared of. In its desired to forge ahead in the competitive field of the home textile sector, the company has made investments for updating and modernizing its machinery and equipment and insures training of its employees by hiring and contracting its experts in textile for its workers for its staff. As well as sending executives to recognized institutes in the country and abroad for specialized training in management, accounting, IT and technical training. It was the first textile company to introduce quality circles even at the workers level and by mid 80s had graduated to total quality management and Demings 14 points. It was also the first composite company in Pakistan to obtain ISO 9002 certification and has recently been certified for Oeko-texStandard 100. The main architect of the sales in the marketing of the Crescent Textile Mills Ltd has been its Chief Executive, Mr. Muhammad Anwer, who has led the company for the front. Besides been awarded every year its highest sales in yarn and cloth, the C.E has also been recognized as the business man of the year twice in the year 1993,1994 and 1994,1995 by the Pakistan federation of Chamber of Commerce and industry. The company has also been awarded the president of Pakistan export trophy for three consecutive years in the mid 90s. For the year ending in September 2002, the company had generated export sales revenue of $60.94 million, of which clothe (beached , dyed or printed) accounted for nearly US $ 33.95 million; made ups in the textile sector accounted for US $ 14.16 million; yarn sales accounted for :Us $ 10.31 million and towel sales accounted for US $ 2.52 million. The Crescent Textile Mills Ltd has been introduced as a public limited company under the companys ordinance on 1 May 1951 and has quoted on the stock exchange. Crescent energy and SAC are fully owned subsidies of the Crescent Textile Mills Ltd. The share break down of the Crescent Textile Mills Ltd is: Crescent family and group companies 51.57% Public and foreign institution 48.43 % List of board of directors is shown below: Mr. Muhammad Anwer (Chairman& Chief Executive) Mr. Anjum M. Sleem

Mr. Hamayun Mazher Mr. Khalid Bashir Mr. Muhammad Arshad Mr. Nasir Shafi The company has signed a joint venture agreement with Green Wood mills Inc. USA. To set up a composite Denim garment-manufacturing unit at Bahuman, Dist. Hafizabad under the name and style of crescent green wood limited.

THE CRESCENT GROUP

The Crescent Textile Mills is a part of Crescent group. Which has established about 30 companies in various part of the country. The major sector of the group is an under.

Listed Companies:
y Crescent textile mills limited y Crescent Knitwear limited y Crescent sugar mill & distillery limited y Shakargani mills limited y Crescent boards limited y Crescent investment bank limited y Shams textile mills limited y Elite textile mills limited y Crescent jute products limited y Crescent leasing corporation limited y Crescent steel and allied products limited y Jubilee spinning and weaving mills limited y Pakistan industrial leasing corporation limited y Premier insurance Co. of Pakistan limited

Unlisted Companies:
y Shams food products Limited y Crescent ventures International Limited y Crescent Bahuman Limited y Crescent greenwood energy Limited y Crescent energy Limited y Crescent powertec Limited

Private Limited Companies:

y Crescent group engineering (pvt.) Limited y Crescent (pvt.) LimitedS y Crescent software products (pvt.) Limited y Riaz and company (1962) (pvt.) Limited y Jhang electric supply corporation (pvt.) Limited y Crescent business management (pvt.) Limited y Cresent group (pvt.) Limited y Crescent group services (pvt.) Limited y Elite energy (pvt.) Limited y Juiblee energy (pvt.) Limited

Vision
To transform the company into a modern and dynamic yarn, cloth and processed cloth and finished product manufacturing company with highly professionals and fully equipped to play a meaningful role on sustain able basis in the economy of Pakistan. To transform the company into a modern and dynamic power generating company with highly professionals and fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan

Mission of Crescent Textile Mills

Mission of Crescent Textile Mills is To produce superior quality products to face competition in the international market and to train the staff at the world-class level to enhance the maximum shareholders value

CORPORATE OBJECTIVES
Following are some main objectives of Crescent Textile Mills:  To arrange timely production and maintain quality goods for entire satisfaction of the customers  To make Crescent Textile Mills a first choice for the foreign customers by improving its quality and services.  To extend exports all over the world through better services.  To establish and develop excellent working environment in the departments.  Computerization  Incline a sense of civic responsibility in the staff members  To achieve companys objectives  Implementation of ISO-9002 standards  To provide the employees a friendly atmosphere to increase their commitment and loyalty towards their organization.

Strategies of C.T.M
INTEGRATION STRATEGIES
From this type of strategy Crescent adopted two ways:

y Forward integration
It means Crescent textile gets control over its distributors because it has its own fair price shop.

y Backward integration
Crescent textile also adopted the strategy of backward integration. Which means Crescent gets the control over its suppliers because of the following reasons. i. ii. iii. iv. Maintain quality Delivery time Price fluctuation Independency

INTENSIVE STRATEGIES:
Crescent textile adopted product and market development strategies because it exports the products to different countries according to the demands of customers.

DIVERSIFICATION STRATEGIES:
From diversification strategies Crescent textile only focuses on related diversification because it also manufactures/produces kitchen products like tea cozies etc.

EVALUATION OF VISION & STRATEGIES:

The vision of Crescent textile describes that it want to work in modern and dynamic environment and at the same time fulfill the demands of customers in an efficient way that create value for Crescent. According to this point of view, the strategies adopted by Crescent are matched with the vision of Crescent. y Crescent is working in the right direction for the achievement of objectives/goals which are set. y There is perfect alignment between the vision and the Strategies adopted by the Crescent.

Managerial Strategy Of C T M
As its major competitors are in the country as well as in the foreign markets, while concerning with the countrywide competitors, there are major competitors like nishat Textile Mills Limited, Kohinoor, Gul Ahmed, M.Farooq, Chenabtextile mills limited, A.M textile mills limited along with major competitors in European market. There is strictly needed a strategic focus to face the present intense competitive situation. The market for textile products is becoming more competitive every year. The customers are emphasizing on quality over all other thing and can easily search the most cost-effective supplier anywhere in the world. Keeping this in mind, Crescent Textile Mills focus has been on

meeting

its

customers

demands

and

requirements,

improving

its

competitiveness, increasing productivity, and enhancing its existing quality control systems. So it has emphasized on the implementation of the developed strategies.

Every element of cost and quality is continually scrutinized and measured according to worldwide standards. Each unit is independently analyzed as a cost center to make cuts wherever and wherever possible. The Quality Assurance department has been further strengthened with the addition of trained staff and state-of- the art equipment.

Marketing strategy of C T M
Although it may be the duty of the government to ensure availability of cotton at a reasonable price, it is the exclusive responsibility of Crescent Textile Mills to implement the total quality management concept. If units are able to minimize wastage, optimize cost of production, improve quality standards, ensure product diversification and learn to market the finished products, no country can compete with Pakistan. Taiwan, Hong Kong, Korea, Japan, Bangladesh are the large manufacturers and exporters of value added textile products, but are dependent on Pakistan and other countries for their requirements of cotton, cotton yarn and fabric. Their edge is in finishing good quality fabric; producing attractively designed garments maintaining quality standards and abide by delivery commitments. These countries also follow different marketing strategies, while the Pakistani manufacturers first produce a product and then try to locate a customer; other countries produce what the importers demand. Not only this, buyers are often willing to pay a premium for odd specifications, short delivery time or immediate commencement of shipments of small lots, extra care in meeting specification and better quality standards, using better quality package which may not cost as much as the premium offered. Lately, the manufacturers of yarn having pragmatic thinking and realizing the tough completion have started producing dyed cones. They

have not only tabbed a new market segment but also get better return. Isnt it not innovative marketing? Crescent Textile Mills have to realize the harsh reality that the days of cheap domestic cotton are over, the import of textile products is being gradually open and quota regime will be phased out gradually. They know their capabilities as well as shortcomings, products they can produce and the products the foreign buyers demand, we have to plan today how would they market their products is the days to come.

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, cheaper and better raw materials and machinery. Countries like China, Indonesia, India and Bangladesh played an active role in the 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, Korea, Taiwan, UK and South America was initiated in case of Yarns. A new spinning unit of 21,672 spinning has also commenced, which caters to the weaving units in Sheikhupura. In case of Grey Fabric market business was initiated in South Africa, North America, Japan, Italy, France, and Sri Lanka etc. Product range was also increased to 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 which are being sold at premium prices. NML has constantly updated our machinery, replacing old machines with new ones upgrading the existing set-up, leading to better efficiencies and quality products.

Crescent has established its name in new markets be creating specialized fabrics, designs 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, Crescent 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 thing of the future, Crescent 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 compared to last year. In Europe, Crescent has made the most growth in the year 1999. It has placed us successfully in the middle to upper end of the market. 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. We are also exploring business opportunities in countries like Spain and France where Crescent has very little business at the moment. North America is the star market for Crescent; its a new market for it after breaking up the exclusive arrangement with our previous sale set-up. The quota is coming down in 2005 and we have started to prepare for it internally as well as for the external environment. Bedding is the bulk of the home textile business. Crescent is in the process of updating its machinery to cater the needs of the wider width fabric requirement for USA bedding business. Crescent is also taking up the social accountability issues very seriously, which are so dear to

the American consumers. Lot of big brand US companies have visited us and are discussing the possibilities of a joint venture. The opportunities are limitless, we have to review and analyze them very thoroughly to associates with the right people in the long run. In the short term we are building a small amount of quota, which will give us recognition as a bedding supplier. Crescent is very strong in non-quota categories like curtain and table linen. These categories are best served with new product development (NPD). Crescent will coordinate the effort for NPD by all markets to optimize results. Crescent has achieved the highest sales in 1999-2002 for North America market. On top Crescent has developed more direct and closer relationship with our end customers. Oceanic has been our most lucrative and mature marker. In business terms it is our cash cow market. Primarily due to being a non-quota market it had no real limitations in this market. Despite economic problems in that region, it has maintained our sales figures in the year under review. This market is a good design source for other markets, which is helping us to maintain our print volumes. Middle East market is composed of South Africa and the new emerging markets like the UAE, Egypt, Saudi Arabia, and Jordan etc. Crescent has dedicated new staff with fresh energy for the emerging market. They have successfully broken the ground and we have very strong faith that these markets will give us good volumes in the near future. We are also targeting printed apparel business for the first time. The latest addition is the most ambitious Apparel Dyeing plant setup near Lahore, which has started its production. The effectiveness and productivity of this plant will be further enhanced, as Crescent Mills Ltd moves towards becoming a more vertically integrated organization. Our dyed fabric has already established its name in the market. It is being exported to some of the leading brands of the world.

Crescent has increasing its profitability by working efficiently, procuring better raw material and most importantly kept a very close association with its costumers. It visits its business partners frequently and provides them with the best service possible. All of the above mentioned points led to strengthened relationship with its business partners making it very difficult for its competition to penetrate into its market share. Crescent has provided its staff with better working environment and facilities, which enhanced efficiency and out put. At Crescent, it is prospering due to our professional commitment toward excellence and giving the best results at all times and against all odds. Its marketing and production teams co-ordinance at all times and it focus remains on maintaining its position as the market leader in the textile sector of Pakistan.

Strategies In Price Fixing

There are two types of price fixing strategies

 y Directly to customer y Indirectly to customer

1- Directly to customer
If they sell their product directly to the customer then they fix price in such a way

Fixed cost + Variable cost + Desired profit

2- Indirectly to customer
If company sells their products indirectly then they fix price in such a way

Fixed cost+ Variable cost + Desired profit + Middle mans commission

In this case the profit margin depends upon the quality and condition of the market. If the market is new then the price will be new to attract the customers and compete the existing competitors.

Promotional Strategies
The CTM has not any promotion point its products. Because the demand of their products in the world is very high. We can easily judge them from their work. Our export figure is varying high as compare to any individual company.

Sources Of Communication
CTM uses following sources of communication

 Textile exhibition  Personal visit to the customer  Customer visit to the CTM  Fax, Telephone, Mail, e-mail etc\
Quality policy of the company is as under It is the policy of CTM to provide products and services that consistently meet the expectations of our customers. Encourage total employee involvement in the never-ending effort to improve the quality of our products and services.

All employees are responsible for the quality of their own work. All have the authority to initiate action to prevent the occurrence of product nonconformity. Managers at all levels in the organization are responsible for quality improvement activities within respective areas. Top management will provide leadership and direction of achieving quality improvement by interpreting policy, recommending strategies, organizing resources, and assisting managers in the development and implementations plans.

Quality Objectives
The quality objectives of CTM are as follow:  To maintain the implemented ISO 9002 quality management system  To have a strong quality check at all stages of production thus paying a way to have a better overall quality of the product and reducing overall rejection.  To achieve the sales target.  To improve the delivery system and to eventually achieve 100% on time delivery.

functions
FUNCTIONS & ITS RELATION TO WHOLE STRATEGIC SETUP
With the HRM point of view, the company performs the four functions: Staffing Training & development Motivation Maintenance

1.Staffing Staffing is the first function which the Crescent textile performs. In staffing Crescent searches the competent employees. Staffing has further 3 sub functions: y HR Planning A process by which the Crescent s managers insures that they have right number of people in the right place at the right time. y Recruitment In this step Crescent identifying the capable applicants. y Selection In this step Crescent select the best one applicant.

y Training & development

Crescent textile only focuses on: y Orientation y Training issue y Development issue But not on career development because extra resources are utilized on career development.

y Motivation & maintenance

Crescent textiles evaluate the performance of the employees and then motivate the employees for the achievement of motivation of goals. RELATION TO WHOLE STRATEGIC SETUP HR department align the HR functions with the strategies by seeking the assistance from chairman & managers of different departments.

EXPORT DEPARTMENT
CTM has major business of exports, round about 80% of total sales are from exports. As export market of CTM is divided geographically into four segments, so to deal each sagment a separate group op person is allocated who are responsible for all the orders of that specific territory / sagment.  Export Asia Africa (EAA)  Export U.S.A & Canada (EUC)  Export Yarn &Towel (yet)  Export Europe & Cyprus (EEC) The process of flow of work in these sections of export departments is same, so I have explained generally the process and functions of export department.

The export department is situated within the finance department. There are a lot of workers, which perform different functions

Functions of export department:

Following are the main functions of export department  Getting orders from aboard  Costing  Making contracts  Order completion one per sample  Delivery of goods

PROCESS
Work in export is divided into four sections geographically for proper distribution and handling of work. Following is the brief process for all sections of export departments.

Finding Of Customers
General manager marketing and manager marketing of CTM makes contact with the potential buyers through e-mail, telephone, faxes to get orders. Similarly marketing manager along with the Chief Executive attend different international trades fairs and present their products to get the buyer attention and order.

Making Contracts
Marketing department of CTM takes following steps to make a contract with the buyer:

1)- Inquiry
Customers inquiries are received via telex, letters, e-mails or during meeting with the customers. Inquiry documents are directly sent to CEO for review and comments; if any absence of CEO, the inquiry documents are send to the GMM for review. After CEO review, these are sent to the department incharge who after reviewing distributes these documents to the relevant staff looking concerned marker segments.

2)- Feasibility and Availability Of Goods

Concerned sectional incharg reviews the customers requirements completely before quoting price to customers and ensure that:  The requirements are adequately defined  Mill has capability to meet the customers desire or requirements.  Conformation of raw material in house / from outside.

3)- Costing The Approvals

After conformation inside / outside, sectional incharge prepare costing sheet of department incharge review and approval of CEO / GMM. CEO / GMM gives acceptable price or may suggest new price on costing sheet. In absence of CEO / GMM gives acceptance. if both are not available then the department incharge is authorized too.

4)- Quote Price Offer To The Customer

After getting the approval of costing and review of customer requirements, price is quoted to the customer for conformation.

5)- Customer Approval

Customer accepts offer or may reject, if reject then the costing sheet again repaired and the approval procedure repeated.

6)- Contract Review And Issue

After reviewing the confirmation or purchase order, concern staff issues contract after complete review and note it in export order register.

7)- Amendment To Contract

Once the contract is established for quality, quantity, price and delivery. Any request from the customer for change in assortment of design or increase / decrease in quantity resets, i/c terms, price and delivery. Customer may ask for any of the following changes.  L/c terms  Quality increase / decrease  Assortment of design  Color ways  Shipment schedule

8)- Review Activity

After receiving the amendments by customers, possibility of amendments is reviewed of it is not possible then regret with the customer. Other wise impact of changes in price, delivery communicated to the customer and its copy is retained in the file for future references. The amendments copy with regards to quality assortments, shipping or packing instructions and shipment schedule is send to the department for implementation and follows ups.

9)- Checking Artwork

After finalizing the contract and making entry in export order register, now concerns A.M receives art work for the customer for processing the clothes per customers desire.

Artwork contains no of colors and designed used for the final cloth and also the packing, labeling and stitching instructions as well as telling about the sample size.

10)- Making Strike Off

When A.M receives artwork then he gives instructions to the concerned production staff to prepare strike off (sample) as per artwork send by customer. After completion of strike off, these are checked by concerned A.M and are delivered to the customer after the final approval, so the production on large scale can be started. If the customer approves the sample the export staff order of large production. Other wise they only receive the cost incurred on the preparation of the strike off.

Instructions To All Concerned Areas

Now the concerned A.M of export department send instruction to all the concerned areas through proper documents, e-mails and all the available sources for the completion and delivery of orders. These functional areas are following:  PPC (planning, production and control)  ES (export sales)  Production department (spinning, weaving, processing,

garments and folding)  S&D (shipment and documentation)  EF (export finance)

Planning, Production & Control

Functions:
 Stock update  Arrangement of fabric and yarn  Follow-ups for order completion

Checking and update the stock

When export department gives instructions for large productions for all functional areas including PPC. Now the duty of PPC is to check the surplus stock available in godowns. If the gray cloth or yarn required for the completion of order is present, then PPC gives instructions and supply material to the concerned department to complete the period with in specified period and after providing material stock is updated in the daily stock reports.

Instructions to grey procurement department

If the yarn or grey cloth is not available in the godowns then PPC has the duty to inform export sales department to arrange grey cloth for the completion of order within specified period through e-mail and proper documentation. One copy of that is kept for the future references.

Maintaing record of machines

PPC also maintain report that shows daily record or orders, which are being processed on all available machines in spinning, weaving, garments department and also records of machines which are busy and which needs orders.

Follows-up and order completion

The PPC department is responsible to get orders completed from the concerned production department with in specified time, so they make continuous follow- ups in the production department to get order accomplished and after ward they inform the export department about the completion of orders.

EXPORT SALES DEPARTMENT

Functions:
Arrangement of grey cloth and yarn for the export orders.

Demand
When the grey procurement department receives demand from PPC to purchase grey cloth or yarn, now it is their responsibility to arrange required quality and construction of cloth. So they adopt three ways:  Purchase of grey cloth from the local manufactures  Providing own yarn and manufacturing grey from outsider with that yarn.  Using CTM own grey and yarn.

Entry in register and computer

After receiving demand grey procurement department enters the demand in to the register and computer and 1 copy of these reports send to the CEO

Contract with local parties

Now production department contract with the different mills to provide them required construction of grey cloth either with their yarn or yarn provided by CTM. If the party agrees to take yarn from CTM and ready to make cloth with that yarn on their machines that is a power loom or auto looms then a contract is finalized after setting a suitable price with the approval of CEO. Following are the some parties  Sac textile  Tanvir gull textile  Manzoor textile

Quotation
As the primary purpose of export sales is to manufacture the fabric from subcontractors at conversion rate by providing the yarn from mills or outside. These conversion rates and per meter yarn weight provided by the mills are quoted by the party to get business. At the offer of export sales department, the vendor and subcontractors send their quotation to export sales. The offers are made to those vendors that are already working with CTM.

Comparative report

After receiving of quotation the comparative report is made and sent to CEO for approval. In that report all the comparison is made subcontractors according to the rate offered by them.

Price Approval
CEO gives the price approval at the quotation of vendor or subcontractor. If the price quotation is rejected it is negotiated with party again and revised quotation is send to CEO for approval.

Contract Issue
After the price approval by CEO, a contract is made including all the terms and conditions settled with party. The contract contains the name of party, the date of issuing the contract, quantity and quality of fabric, counts and number of bags of yarn. Per meter weight in lbs of yarn. Yarn conversion rate and the delivery rates of fabric.

The Yarn Issued To Party

This procedure takes place when exports sales section provides the yarn to the party / contractor for construction of cloth. The expected yarn is calculated in order to make a specific quality and quantity. After that a dispatched schedule is prepared in order to provide the yarn to the party for making the grey cloth. The delivery of yarn to the party is made according to the dispatch schedule. The finished grey cloth delivery is also set with the party according to the export requirements.

Maintaing record

When a contract is finalized then production department is responsible to maintain record of yarn, which is supplied to the parties and grey cloth, is received against that yarn from these parties. Similarly it also maintain the record of CTM yarn and grey delivery to PPC department. For this purpose the production department updates two reports daily and submit them to CEO. Balance to book report Uncovered goods report

Arrival Of Finished Grey Cloth

The goods arrive from party according to the delivery schedule. The goods are sent to mills grey cloth godowns.

Inspection report to export sales section

After receiving the cloth in grey cloth godowns its inspection is made and inspection report is prepared. On the basis of inspection report the cloth status report is prepared. The report is in triplicate form and sent to export sales department. One copy is send to party and other is sent to the sales account and third is retained to the office record. The quantity of grey cloth is entered in party wise register according to the inspection report.

Rejected goods to party

The rejected goods are returned back to the party. The rejected grey cloth is bought from the party only after the approval of CEO at reduced rates as compared to normal rates. Rejected grey cloth is used in printing.

Orders booked by the customers considering for end use. The rejection can also be sold in the local market.

Bills from Party

Bills are received from the party against manufacturing or purchasing of grey cloth. The quality, quantity and the width verified in view the contract made with party by export sales department. Verification of the bills is made through the records (that records is maintained in party wise register and relevant files). After verification the bills are sent to sales account department for payment.

Payment
The payment is made after the approval of CEO in the form of cheques. The cheques are issued in favor of party against the execution of contract.

Export documentation
In the modern world all countries whether developed or under developed are pre-occupied with problems of selling merchandises in foreign countries. When goods are exported a number of documents are to be prepared unless the overseas trade is properly documented, the exporter cannot receive payment and the importer cannot make it. The major documents involved in the export process or in the foreign trade are:  Invoice/indent  Letter of credit

 Transportation documentation  Packing list  Certificate of origin  Certificate of inspection  Procedure list  Form E
 Bill of exchange

Before going into elaboration of these documentations, one must know all about them. No person can export any goods until he is registered as an exporter with Director general of Export Promotion Bureau.

Invoice/indent
A commercial invoice is a commercial document by which the seller charges the goods to the buyer. The in formations, which this document provides to the exporter and the importer, are as follows:  Date  Invoice number  Name and address of the buyer and the seller  Order/contract number, description of the goods, quality, unit price and the total amount of goods exported  Terms and conditions of the payments  Shipment details  Certification on the invoice

Letter of credit
The terms of letter of credit is defined as: The confidence of man in man In financial and commercial transactions this confidence is displayed by the willingness of a creditor to grant to a debtor time for payment of the debt either on the oral or written assurance of the letter that such payment will be duly effected. The procedure and the parties involved in the letter of credit are as follows:  Buyer  Opening bank  Advising and negotiating bank  Shipper/Beneficiary  Contract of sales

Transportation document
International trade involves the movement of goods from the warehouse of the exporter to the warehouse of importer. There are several modes of transporting goods and several types of documents involved in transportation process
Mode Carrier Transportation document

By sea Shipping Co. Bill of lading

By air Airline Co Air way bill By post Postal Services Post parcel receipt By rail Railway service Railway By road Trucking Co Road way bill The transportation documents is the most important document because it is the evidence the goods are being transported and it enables the importer to obtain the delivery of the goods in due course. Transportation document can be classified into two main types, which are as follows:

Negotiable document
These are the documents whose title can be transferred from one person to another person. The delivery of goods can be made to the final or existing holder of the document. These include bill of lading, railway receipts etc.

Non-negotiable instruments
These are the documents where the title of the goods in not transferable. The delivery of the goods is only made on the names of the consignee on identification.

Parties & documentation involved in export The carrier

The firm, company or authority engaged in the business of the transportation the goods, such as steam Ship Company, airline comp etc.

The shipper

The seller of the goods who wants to export his goods from his country to another country is called shipper.

The consignee
The consignee is one to whom are the goods are to be exported. It may be an international bank or the buyer himself.

Certificate of origin
It is a signed statement providing evidence of the origin of the goods. These are often required by the authorities in the importing countries in order to satisfy themselves that the goods originates from a country from which imports are permitted or to support a claim for the professional import duty.

Packing list
It is a document, which lists each package and shows the contents of each package including in particular shipment. The following are the important features of packing list document:  It must list each package by number  It must show the contents of each package  It usually shows the weight and measurement of each package.

Form E
It is a document issued by the exporter bank on a written request signed by the authorized signatory. Through form E State Bank of Pakistan exercises absolute control over export process. Form E will be issued the following by beneficiary bank:  Known customers

 Regular exporter  Regular customer but exporting first time

Bills of exchange
Bills of exchange is legally defined as, An unconditional order in writing, addressed by person to another, signed by the person giving it, requiring the person to; whom it is addressed to pay on demand or at a fix or determinable future time as uncertain in a money or to the order of a specified person, or to the bearer.

Submission to export finance

After competition of these entire documents before the mentioned date, these documents are finally checked in the S&D department. And are handed over the export finance department to submit them in the bank, which send them to the buyer bank and finally the documents are received by the buyers. Quota management This is also a separate section with in shipping and documentation department, which is responsible to manage the purchase and sales of textile quota. Textile quota is a restriction from certain countries like USA, and some European countries like turkey. Pakistan can not export more then that fixed limits in these quota countries. This quota is distributed in different textile organizations including CTM through textile associations like APTMA on the basis of yearly performance.

The quota section in S&D department of CTM perform following functions.  Keeps the country wise record of total quota available to the year to the CTM.  Updating the record that how much quota is used and how much is remaining.  If there is excess of quota for the year then they sell it to the other exporters.  If there is need for more quotas then they purchase from different exporters and associations like APTMA.

Finance department
This is the major department of the company. Finance department is located with the factory. It prepares different kinds of financial reports and gives information to management for decision-making purposes. Finance department prepares the Income statements, Balance sheet, Trail balance, Cash flows, Production report for the whole month, stock taking report yield comparison report etc. these all reports are helpful for the management to make production plan, financing decisions and other important matters. The head of the department in finance manager. He is a chartered accountant.

Function of finance department

Following are the main functions of finance department 1. To prepare monthly and half-yearly reports 2. To keep the record of inventory and stock

3. To maintain a liquid position 4. To maintain adequate cash to run the operations of business 5. To reconcile the bank statements 6. To make payments to the suppliers 7. To maintain debt and credit balances of the customers 8. To deal with the sales tax and income tax departments 9. Preparations of vouchers 10. Prepare profit and loss accounts & income statements 11. Keep record for the payment of salaries

Purchase department
The department is located within the factory. There are eight employees working in the purchase department. The decision of the purchase of raw material is med by the top management or when any new machinery or plant is to be acquired. At the time of the cultivation of the cotton crop, the decision is made with considering the other factors like requirement, price, quality etc that how much we should purchase and from whom we should purchase and through what sources we can finance this purchase. So in this regard, the Chairman with the consultation of the Mill Manager, General Manager Finance and Technical Manager make the bulk orders. The finance division helps them in this regard to arrange eh funds. So in this regard, the select the bank that provide financing facility at lower rate of interest. As far as the purchase of raw material is concerned, the purchased department fully contributed its efforts in this regard. Whenever any section of the mills or he head office requires any thing they make and purchase indent to the purchase department. At mill, the storekeeper made this indent, on the other hand of the required thing is available with him, he makes the delivery to that section.

When the supplier dispatches the goods to the mill, a dispatch advice is made by the department t other store keeper that the items is dispatched to you. At mill, an inward gate pass is made and the items sent to the store where the storekeeper prepares goods receipt note after inspecting the items and this GRN one copy is sent to the purchase office and one copy is sent to the account s office.

Function of purchase department

Following are functions of purchase department: o Provide link between the workers and management o Ensure the implementation of the rule and regulations of the company o Inquires of the complaints against the workers o To solve the problems and grievances of the workers

Store:
The store plays very important role in any kind of manufacturing organization.

Functions of store
Following are the main functions of the store keeper has performed in any kind of organization: o Collection of demand from different departments and issue material to them o If stock is not available with it, demand sends to purchase office o Collection of receipt of material or items purchased o Keep the stock of items up dated o Keep the items in the store in systematic manner o Link with purchase office in the valuation of the items purchased

At Crescent Textile Mills there is the main store at the mill premises, which is situated away from the production and accounts offices. There are seven men in the store, which deal with the demand of the different people at the mill.

Swot Analysis:
Strengths
Crescent Textile Mills is using imported machinery  It has a strong market image  The customer is aware of the name of the company  It has high financial resources  It has competent staff working for the progress of the company  It has automated system of production  Organization has friendly environment  It has certificate of ISO 9002  It has a wide range of products  It always sets new standards for quality  Its design studio is equipped with latest technology.  It has given a large quota for exports in USA and Europe

Weaknesses
 Crescent Textile Mills has ignored than local market  Transit time for international market is comparatively long as compared to India and China.  There is lack of proper training programs especially for workers. They learn through experience and from seniors thats the reason o f high rate of wastage during production.  Wastage is very high especially in spinning sector  Crescent Textile Mills has no proper sale system for cotton waste and yarn waste.

 Some time delivery lates due to lack of production planning  Middle level management is de motivated due to low salary package and promotions are held after a long period  There is no job commitment among the employees.  There is no proper criteria for performance appraisal thats why staff in not motivated  No measures has been taken to motivate the employees

Opportunities
 As Crescent Textile Mills is ISO-9002 certified company so it has a chance to increase & expand business all over the world.  The demand of its products is high in international market  Govt is providing rebate facility  Long term loans are easily available  Company can expand its operations easily  Anti dumping duties in European market are overdrawn, so the chance is to increase the export as compared to last years.  Devaluation of rupee made Pakistani export more acceptable to the foreign buyers. There is a chance to compete better now.  Govts pre import-export policy for cotton is also in favor of Crescent Textile Mills.

Threats
 Foreign investment in textile sector in Sri Lanka, Bangladesh and India is a danger in future for Crescent Textile Mills  It has been seen that many other groups in Pakistan have entered in competition with Crescent Textile Mills. If they will not be competed well, there is a chance that they can get share of export from foreign buyers.  South Africa is thinking about to impose the anti-dumping duties on Pakistan textile exports. If it is imposed, a reasonable export share and big market may be lost.

 There is no proper attention towards Russian market. Crescent Textile Mills can get big orders from Russia. If attention will not be given towards this side there is a chance that any other competitor can introduce its products in Russia and this market can be lost.  High inflation rates hinder in competing the Indian yarn at international level.  Fluctuating prices of dollar also affect the purchase of cotton in off-season.  Due to economic crises of eastern countries, so many sales lost during last few years, but now these countries are again on the road of progress. If the previous customers are not properly attended, they may be last forever.  Due to military Govt in Pakistan, there is a chance for Pakistan to be declared as a terror country. So this thing is also a threat for Crescent Textile Mills.

Competitor analysis
The business environment of Crescent Textile Mills is facing tough competition. Its major competitors are also inside the country as well as in the foreign markets. While concerning with the countrywide competitors, there are major competitors like Crescent Textile Mills and there are also other major competitors in the European markets. The market for textile product is becoming more competitive every year. The customer is emphasizing on quality over all other things and can easily search the most cost effective supplier anywhere in the world. Keeping this in view, Crescent Textile Mills focus has been on meeting its customers demands and requirements, improving its competitiveness, increasing productivity and enhancing its existing quality control systems.

Findings:
Following are some findings of our report:
 There are no motivating factors for the employees  Companies personal policies are not good  The performance appraisal are not carried regularly  Company is facing the main problem of textile industry crises in the country due to floods, leaf curl virus etc. not up to the standards  The employees are not much aware of latest available computer programs  The management is not doing anything for the purpose of satisfying and motivating their employees and the workers, which may lead towards the more productivity.  Changing Govt policies are providing problems for the company exports policies.  The short-term solvency  The company is unable to use its full plant capacity, which shows that technical staff is and long term solvency of the company is better and still acceptable, because there is still a margin of getting long-term loan.  The net profit margin in increasing since 1995 but it decreased in 1999.

Recommendations:
 A proper training should be given to the employees and the workers to enhance their skills to increase their productivity and ultimately of the company.

 The management should make the market survey time to time to get more and latest information about the market factors like the price, demand, current consumer trends etc.  As the world has become a global village, the management should have the latest knowledge and informations about the world because now a little change in any corner of the world can affect your business.  The top management should give the autonomy and the flexibility to every manage to make decisions according to the situation at any time and in the absence of the top managers.  All the duties and responsibilities of the employees and the workers should be clearly defined.  The computer technology should also be used in decision making as well as in storing and feeding the data.  The company should make it possible to deliver the goods to the buyers at the agreed time.  The company should adopt an efficient appraisal system and give rewards to the employees who have done well.  The management should recruit right persons for the right job.  The management should be able to assess the problems before its occurring so that they are able to find the ways of their solution.  The management should hire multi-skilled workers to get economy of scale.  The company should emphasize on its personnel department immediately on emergency basis.  Long-term solvency is good but time interest ratio should also be improved.  There should be decentralization in decision-making  An effective relationship and coordination between the departments must be there.  It should be realized to be very clear about the advantages and disadvantages of each strategy to take effective decision about its continuity to make an effective strategic implementation.

 Crescent Textile Mills should also introduce its brands in local markets.  Company should give proper attention to deal with dead fabric and made ups.

Conclusion:
We got a lot of experience from Crescent Textile Mills. During our internship we came to know that how the different activities take place, what are the procedures The Crescent Textile Mills is on the way of progress. It has been earning profit for the last five years. The management is professionally qualified and experienced. The Crescent Textile Mills should motivate their employees by providing different incentives. Their salary package is also not attractive. The performance of the Human Resource department is also not satisfactory. Crescent Textile Mills product (yarn & cloth) is of high quality. The demand of Crescent Textile Mills products is increasing with the passage of time. The company should expand its capacity as soon as possible to satisfy the demands of their customers.

BIBLIOGRAPHY:
www.crescenttextile.com/
Sources from where I have collected data: Miss Parveen Abida, Production Accounting & Management System, Inspection System, Introduction, Internship Report on Colony Textile Mills Ltd. Lahore Miss Javed Iffat, SWOT Analysis, PEST Analysis, Internship Report on Masood Textile Mills Ltd. Faisalabad. Faisalabad Mr. Bhatti Jamil Muhammad, Marketing Strategies, Internship Report on Nishat Textile Mills Ltd. Lahore