Kohinoor Textile Mill PDF
Kohinoor Textile Mill PDF
Kohinoor Textile Mill PDF
Submitted to:
Sir Muzamil
Submitted By:
Aalia Kausar
Roll No
04
1
S NO CONTENTS PAGE NO
Pre-feasibility study
1 4
3 Organization summary 8
4 Introduction of organization 10
5 Marketing department 13
7 Production operations 17
9 Spinning 18
10 Processing 24
11 27
Dying
2
12 28
Printing
13 Finishing 28
14 28
Stitching
16 Finance department 35
18 Conclusions 41
19 Recommendations: 41
20 References 42
3
PRE-FEASIBILITY STUDY
Executive Summary
Due to small number of existing processing units and increased demand of value
added products, this sector has great potential for investments.
Processing includes bleaching, dyeing and finishing of fabric. For the production
of the value added products, dyed fabric is the key element.
Fabric processing can be categorized as woven fabric dyeing and knit fabric
dyeing. The exports of woven and knit garments are contributing a major share in the
total foreign exchange earnings from textile products.
This unit will process fabric on commercial basis meeting the requirement of
export oriented units as well as the manufacturers of apparel and made-ups for supply
to the local market.
Dyes and chemical used for the processing of fabric play a very vital role in the
processing industry and their quality should never be compromised. Normally, imported
dyes are used in the processing industry due to their better quality. Major origins of dyes
into Pakistan are Korea, Japan, China, India and Germany. However local dyes are also
used in Pakistan depending upon the requirement of the customer.
4
The cost of project has been estimated as Rs.61.150 million including land, civil
works, plant & machinery, office equipment, furniture fixtures and vehicles. This cost
includes preliminary expenses and working capital of Rs.0.350 million and Rs 3.37
million respectively.
The total cost of the project is Rs. 61.150 million including the working capital of
Rs 3.37 million. The sponsors of the project will contribute Rs.36.690 million and the
remaining amount of Rs.24.460 million will be financed by the bank.
Based on the projected financial statements, the returns on the project are as follows:
Plant efficiency of 63% has been assumed in the first year of operations, and in
subsequent years, it is assumed at 98% with 20% growth rate. However, plant efficiency
depends upon the local and international market conditions of value added products.
Operational Capacity
In the processing industry, most of the units are working 24 hours and 7 days a week.
Therefore, revenue of this unit is taken on the basis of 360 days. This project has the
capacity of processing 1,200 kg. Fabric and normally it will take 6 hours to complete one
batch of fabric dyeing. As there are 24 hours in a day, therefore this unit will be
completing 4 batches of 4,800 kg fabric processing in one day.
However, plant efficiency depends upon the local and international market conditions of
value added products.
5
A large quantity of fabric processing would attract economies of scale and would
attract competitive rates of processing from the different dyeing units. On the other
hand, a smaller quantity of fabric would be charged at a higher rate by the processing
units to recover fixed overheads being incurred on processing.
Production
Dyes and chemical used for the processing of fabric play a very vital role in the
processing industry and their quality should never be compromised. Normally, imported
dyes are used in the processing industry due to their better quality. Major origins of dyes
into Pakistan are Korea, Japan, China, India and Germany. However local dyes are also
used in Pakistan depending upon the requirement of the customer.
6
INTRODUCTION OF TEXTILE SECTOR
Value addition is the key to success for our country in the current global
economic scenario. With reference to textile industry, Pakistan has been relying on
export of primary products like cotton and yarn.
Established Capacity
The Textile industry of Pakistan has a total established spinning capacity of 1550
million Kgs of yarn, weaving capacity of 4368 million square meters of fabric and
finishing capacity of 4000 millions square meters. The industry has a production
capacity of 670 million units of garments, 400 million units of knitwear and 53 million
Kgs of towels. The industry has a total of 121 units engaged in ginning and 442 units
engaged in spinning. There are around 124 large units that undertake weaving and 425
small units. There are around 20600 power looms in operation in the industry. The
industry also houses around 10 large finishing units and 625 small units. Pakistans
textiles industry has about 50 large and 2500 small garment manufacturing units.
Moreover, it also housed around 600 knitwear producing units and 400 towel producing
units.
Contribution to Exports
7
Organization Summary
KTML was established in 1953 at Rawalpindi and is one of the oldest companies
of Pakistan with over 50 years experience in textile manufacturing. It was initially
set up as a spinning and weaving project with 25,000 spindles and 600 looms.
KTML has emerged into a fully vertically integrated home textiles company with
state of the art capabilities for spinning, weaving, dyeing, printing and stitching.
The company has a diverse customer base with sales in both the local and
export markets. The main international markets include Asia, Europe, USA and
Australia
The company started in 1953 as a private limited company and become public
company in 1968
KTM produce home textile on customer order mostly they focus on export of their
product their products are very expensive and Pakistan economic condition is not
stable so they mostly focus on export of their products.
KTML operations are spinning, dyeing, and printing and having power plant that
provide electricity to company.
They use imported raw material .They import cotton from America, Egypt, Russia
and India for spinning process. They also use local cotton. They import dyeing
colors from china.
KTM has department of quality assurance that assure quality of product .quality
assurance check weekly or monthly departments whether they are working
according to written procedure or not
8
Marketing department is the heart of the KTML. Most of the business is done
through this department. The objective of this department is to gain new contract
and fulfill it at customer satisfaction. This department is responsible for the new
contracts with the foreign customers.
9
Introduction of Organization
The Kohinoor Maple Leaf Group was born from the trifurcation of the Saigol group of
companies and is a reputable and leading manufacturing of textiles and cement. KTMG
comprises of Kohinoor Textile Mills Limited (KTML) and Maple Cement factory limited
(MLCF). Both companies are incorporated in Pakistan and are listed on three stock
exchanges of the country.
Textiles
KTML was established in 1953 at Rawalpindi and is one of the oldest companies of
Pakistan with over 50 years experience in textile manufacturing. It was initially set up as
a spinning and weaving project with 25,000 spindles and 600 looms. However, after
decades of aggressive expansion and modernization KTML has emerged into a fully
vertically integrated home textiles company with state of the art capabilities for spinning,
weaving, dyeing, printing and stitching. The company has a diverse customer base with
sales in both the local and export markets. The main international markets include Asia,
Europe, USA and Australia.
Cement
Maple Leaf Cement is the third largest cement factory in Pakistan. It was set up in 1956
as a joint collaboration between the West Pakistan Industrial Development Corporation
and the government of Canada. It is strategically located at Daudkhel (District Mianwali)
in Northern Pakistan, which is an area rich in raw materials required for the production
of cement. Kohinoor acquired the ownership and management of Maple Leaf Cement
under the privatization policy of the government of Pakistan in 1992. Presently Kohinoor
Textile Mills is the holding company for Maple Leaf cement.
Board of Directors
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Audit Committee
Mr. Zamiruddin Azar Chairman
Mr. Arif Ijaz Member
Mr. Sayeed Tariq Saigol Member
Mr. Waleed Tariq Saigol Member
Auditors
Vision
To transform the company into a modern and dynamic yarn, cloth and processed
cloth a n d f i n i s h e d p r o d u c t m a n u f a c t u r i n g c o m p a n y w i t h h i g h l y
p r o f e s s i o n a l s a n d f u l l y 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
To provide quality products to customers and explore new markets to
promote/expand sales of the company through good governance and foster a
sound and dynamic team, s o a s t o a c h i e v e o p t i m u m p r i c e s o f
p r o d u c t s o f t h e c o m p a n y f o r s u s t a i n a b l e a n d equitable growth and
prosperity of the company
Competition
At international level there are number of suppliers from around the globe who
are exporting the fabrics to other countries with a high quality and at low price. If we
look at Asian countries then their names are mentioned below.
Bangladesh
China
Vietnam
Pakistan
India
Iran
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These countries are providing the fabric to European countries as well as USA and
African countries. Bangladesh is the only country who is providing best quality of the
fabric.
In local market there are number of units which are competing with each other. There
are 10 big giants of the local market of textile industry of Pakistan and fortunately
KWML is one of them. The major competitors of KWML are:
NISHAT TEXTILE
SAPHIRE TEXTILE
COLONY TEXTILE
YUNIS TEXTILE
AMTEX
CHENAB TEXTILE
AL-KARAM TEXTILE
GULISTAN TEXTILE
FAZAL TEXTILE
Target Market:
In local market, the target customers of KWML are
Upper class and upper middle class of the society
House wives for the ho-textile
Fabrics For garments they are focusing on youngsters and adults
Where as in international market
USA
European countries
Asian countries
Foreign youngsters
Fashion designers
Department of KTML
Marketing dept
Production dept
Finance department
Production planning and control department
Purchase dept
Quality assurance dept
Commercial dept
Human resource dept
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Marketing Department
The objective of this department is to gain new contract and fulfill it at customer
satisfaction.
This department is the heart of the KTML. Most of the business is done through this
department. This department is responsible for the new contracts with the foreign
customers. This department supplies them the made-ups and fabrics.
Regions:
1. AUSTERILA+NEWZELAND+HOLLAND.
2. SOUTH AFRICA
3. SCANDINAVINCOUNTRIES+UK.
4. UK+GERMANY.
5. USA+CANADA.(SOUTH AMERICA)
6. MIDDLE EAST.
7. GREACE +SPAIN.
In every organization marketing department plays a vital role for prevail the
organization in the marketing. In Kohinoor the marketing department is also performing
his responsibility for the best of the organization. It is engaged in getting
orders from customer and fulfills the order according to the requirements of
the customer by the follow up of the entire departments
Inquiry
Customers inquiries are received via e-mails. Customer tells about their specification.
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.
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Conformation of raw material in house / from outside.
Send Samples
Marketing Department send the samples to the customer after getting his requirements then customer
send back the sample by some changing required in that sample the marketing department again
generate the sample and send to the customer.
Setting of Price
When the sample is accepted by the customer then marketing department set the price
with customer.
Contract booking
When customer accepts the offer price of products then both parties buyer and seller
signed the contract.
Manufacturing of Order
Then the order is send to the planning department for running in the production department
and the packing requirement is also send by marketing department which is
followed by the packing department.
Shipment of Goods
When the production is ready for the shipment, the marketing sends the request to the
shipping department which makes the shipment of that order.
Quality Assurance
Q.A precedes the samples by spinning, dyeing and boards it according to the
requirement given to them and checks it step by step at each place and at
the end it reached to the marketing department which sends it to the customer.
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Marketing Process Flow
Customer
CUSTOMER
NO INQUIRY
Is process
Process
capable?Is
capable? Communication
process
capable?
15
Quality Dispatch of Quality
monitoring container as per
monitoring
L/C
Quality
Production Packing
monitoring
Shipment of Measuring
Godowns customer
consignment
satisfaction
16
Production Operations
KTML production operation are spinning, dyeing, and printing and having power plant
that provide electricity to company.
Processed fabric
Made ups
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Spinning:
The procedure for making "Yarn" is called Spinning. Spinning is a delicate process
because the yarn produced in this process should be exactly of the same quality and
count as specified by the buyer.
Process Flow
Cleaning in
Ginning Mixing in Blow Blow Rooms
Rooms
Packing Autocone
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Issuance of Bales
The production process starts from the issuance of cotton bales. Based on the order
(Contract) of yam, an estimate is made for the amount of cotton required for the
process. The cotton is then transferred from one of the Ginning to the Spinning unit or.
When the cotton reaches the unit, the bales are weighted and their moisture is checked.
After that they are shifted to the Cotton Godown. The moisture of cotton bales is again
checked when they are issued for the production process.
Blow Room
Blow Room is the first stage in the making of Yarn. Here there are different machines on
which different activities are performed in order to clean the cotton. So, the basic
objective of this room is to clean the cotton to assure quality in the product.
Process flow
Required
weight per yard
Opening Cleaning
in the form of
LAP
Reduction of
tuft size
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Carding Department
After the blow room, the job of carding department starts. Card is one of the most
important section of the spinning mill. It is called the Heart of spinning mill
In Carding "Slivers" are made. These are long, soft and thick ropes of cotton. These
The cotton passed to the "Carding Section" is clean to produce a high quality yam. Here
Card is one of the most important sections of the spinning mill. It is called the Heart of
spinning mill. Carding action (single fiber action) takes place here. There are four card
sections in cards about 5% to 6% waste is removed.
Process Flow
Get the
required weight
per yard in the
form of sliver
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DRAWING
Drawing is the process where the fibers are blended, straightened and the number of
fibers in the silver reduces in order to achieve the desired linear density in the spinning
process.
Process Flow
Required
weight per yard
in the form of Blending Doubling
sliver.
SIMPLEXING
In the Simpering section the Frames of carded yarn and comber are separately run.
Here, from slivers, "Roving" is made. This is basically thick yarn from which later the
yam with specified counts is made.. These roving are then carried over to the Ring
department.
Roving passes through flyer arm and on pressing bar it goes through pressing eye to
the bobbin. The twist is inserted due to the difference in speed of front rollers and
spindle i.e.
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Process Flow:
Straightening
and
Drafting Twist insertion
Parallelization
Required
Package weight per yard
formation. in the form of
roving.
Ring Department
Here at the ring department, the yarn with specified count is made. The Bobbins made
in the previous department are carried to this department where these are run
on "Spindles". At spindles the yarn is made which is of the count specified by the
Process Flow
Drafting
Twist insertion Yarn formation
Package
formation for
auto cone
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Auto Cone Department
After the yam is made on "Rings", it is carried over to this department which is
called "Auto Cone". Basically in the previous department the yam has been made and
the only objective of this department is to join the yarn and bring it on the cones. The
"Rings" are placed on the machines that draw the yam from them one by one, joins it
Packing Department
Yarn Godown
After packing, the yarn is transferred to the Yam Godown. In this Godown, all the record
is kept about the amount of yarn, its quality and the count.
At the time of dispatch the yarn is dispatched from the Godown .
Weaving process
After spinning there is weaving process but KTML is not doing the weaving process that
is shifted to Kohinoor Raiwindmill.KRM produce grey fabric for home textile products.
Weaving process:
INPUT OUTPU
Conversion
Yarn Grey fabric
process
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PROCESSING
The objective of this department is to convert greige fabric in to the finished printed or
dyed fabric through different process
Processing department has different procedure to convert greig into printed or dyed
fabric.
1. Pre treatment
2. Dying.
3. Printing.
4. Finishing.
5. Laboratory
Through these procedures they will able to get finished product at the
requirement of costumer.
Pre treatment
Folding department will issued greig to this department for the initial process. In this
department different process has to be done on the greig fabric.
Process Flow
Rotation
Singing. De-sizing
Stanter
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Singing:
Singing is a process in which we burn the protruding fibers and remove the
pilling. After this we will improve the quality of the fabric. Singing is done at both or a
single side and burners position set on the required degree.
De-sizing:
De-sizing is a process in which we de-size the fabric and remove starch from it. Two
type of de-sizing. De-sizing and cold bleach (oxidative de-sizing)
De-sizing is done at the temperature of 70c to 80c. It helps to remove starch from the
fabric and shrink the cloth.
Recipe:
Its up to the fabric quality how much de-sizing agent is used in the gallon/Liter.
1. Wetting agent.
2. Caustic soda.
3. Emulsion.
4. Lusytonse.
These chemical are only used in sing de-size requirement.
Oxidative de-sizing:
Oxidative De-sizing is done at the temperature of 30c to 40c .Its also called as a
cold bleach .
Recipe:
1. Na2 S2 O8 (sodium per sulphate)
2. H2 O2 50%.
3. Stabilizer.
4. Wet agent.
5. Caustic soda.
Padder pressure:
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Rotation
The objective of rotation is to gain more observance of the chemical in the fabric in the
required time.
Rotation time:
Rotation time is up to the fabric quality. Maximum 8 to 16 hours is required for rotation.
Scouring process is to do more refine fabric .caustic soda and wetting agent is used in
the recipe.
After rotation the beige will bring to the L.BOX machine, where we done the scouring
and bleaching to the fabric.
In this process different fabric has the different speed in meter /minute
At the first step fabric will wash in the temperature of 100c water.
These steps are done after the rotation to wash the fabric.
In the next step fabric will come to the Saturator. There is different chemical used for the
different blends, the fabric dip in it and go to the steamer. In the steamer fabric come for
steam for the required time.
After this again washing starts, after steamer the temperature of the washing water is
100c, at the next wash the temperature is 95c and at the second last wash the
temperature is 90c and last has the 80c.
After this fabric went to the dryer and again become in a beige shape and ready
for the next machine.
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Mercerizing:
To improve the fabric quality through swell the fiber .To improves the quality of dying
and printing.
Sodium hydro oxide 300 to 400 g /L used for the pilling control shining.
Stenter machine:
Batching for printing mercerizing dying,
Leuco of polyester is applied on the fabric then the beige will send to the L.Box machine
for the re bleach in the re bleach process the extra leuco will remove from the fabric and
polyester fiber will brighten in look after this the beige will bring to this machine and
cotton leuco is applied on it.
After this process fabric will bring to the next section. If the costumer required for the
dying the fabric will bring to the dying section, and if the costumer required for the
printing the beige will send to the printing section.
Dying
Objective of this department is to dye the fabric up to the requirement of the costumer.
Color matching, shade variation, color and rubbing fastness are this departments
responsibility. Dying department has different kind of dying.
Reactive dying.
Vat dying.
Pigment dying.
Dying department is mostly do dying in reactive dying because it is easy in use and
have good result and have low cost. Reactive dying is applied on the temperature of
102c.pigment dying is use to dying both polyester and cotton
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Dying department has two types of machine.
Thermo sole machine has the heat dying system after dipping in the color the fabric is
crossed heat machine (infrared) for dry. After this the fabric will go to the first dryer and
then in the second dryer for the more dryness, after driers fabric will go to the Q.RING
machine for the fixing of the color.
Printing
Finishing
The objective of this department is to finish the printed and dyed fabric, it works to
smooth the fabric strong its color .it finish the fabric at the requirement of the customer.
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There are different machines to finish the fabric.
Stenter machine.
Calander machine.
Monfort machine.
Sunfrize machine.
These machines help to smooth the fabric and fixed the color and reduce the shrinkage.
Stenter machine
This machine works to finish the fabric after printing and dying
Stretching the fabric, heat setting for shrinkage control, lecuo for extra whites.
Calendar machine
This machine works to smooth and shine the fabric, it will press the
fabric.
Monfort machine
This machine is in the folding department this machine also work to
finish the fabric and smooth its surface.
Sunfrize machine
This machine is new addition in the finishing department it has good
result about smoothness and reduces shrinkage.
After these processes the fabric will bring to the folding department who will inspect the
fabric and convert the fabric in to the rolls and pack the fabric up to the requirement of
the customer and finished fabric dispatched for the shipment.
Laboratory
Lab is the important part of processing, it check the quality of the work done in the
different sections through quality control. The lab has done different test.
1. Rubbing test.
2. Color rubbing test.
3. Washing test.
4. Brushing test.
5. Dry cleaning test.
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Cutting
This department works to cut the fabric issued by the folding department at the
customer demand.
This section has the very importance because they cut the fabric.
Each set has the normally three sizes. Cutting section is responsible for to cut on these
sizes that is required by the customer.
Every made up has different cut style. They cut on the biases of their cut length and
their leaner rating. Cut length shows from where the fabric cut and liner rating shows
how much fabric is consumed in single piece.
Stitching
This department works to stitch the cloth at the requirements of the customer.
1. Manual section.
This section has the manual transfer of the material. Every worker manually
transfers the material to its position, which is effect on its production.
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Total =63.
This department has the switch track system, which help the worker to
generate more items in less time, in this section the fabric switched with the hanger
and he will easily stitch the fabric. This section has the track, which is very effective
from production point of view.
Total=94.
3. Curtain section.
This section works to make the curtains. They made lined curtains, UN
lined curtains, curtain valance, tiebacks.
Quilt cover.
Valance sheet.
Fitted valance sheet.
Flat sheet.
Fitted sheet.
Pillowcase.
Each item has the different stitching strike off.
Quilt cover
Two types of quilt covers are stitch in the stitching unit. L shape and U shape, some
quilt covers are the open head and some are the shoulder style. The stitching strike of
the quilt cover is the,
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Fitted valance sheet.
First in the valance sheet valance attach to the flat sheet attach then it will go to
the other machines.
Every section has its own folding and packing sections that are responsible for the
folding and packing.
Types of folding
Book fold;
This type of fold is open from the side, and look like the book. In this type of fold two
stiffeners is used for folding.
U- shape;
In this type of fold two separate sheets are used for fold and open from up side.
Plane;
One sheet is used for the folding. And it is in the single fold
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Gazat of every sheet is different due to size
Packing
After folding packing section will received the fold material and pack it at the
requirement of the customer.
Poly bags
PP and PVC is the two types of the poly bags.
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Curtain folding and packing
Curtain section has its own folding and packing. They normally used book shape and
plane stiffener for folding required by the customer one side white or both side brown.
Each set curtains and tiebacks are included.
Stiffener.
Make up card.
Photo card.
Large size sticker.
Spine sticker.
Rotation dot.
Bar code.
Make up sticker.
Make up sewing sticker.
Poly bags.
Cartons.
Cartons sticker
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Finance Department
It is very important for the smooth and steady operation of the business, whether it is
small scale or large scale. It is so because in the present days large amount of capital is
needed and one cant provide a huge amount. So financial management refers to those
activates which are essential for searching out the large amount of capital needed for
the smooth operation of business
Finance is being considered as the life of modern business and plays a key role in
business organization because without finance there is nothing to plan and organize,
direct active and control.
Financial planning
Procurement of funds
Finding out different sources for obtaining funds
Future of forecasting of financial needs
Caring upon negotiation with creditors
Effective utilization of funds
Account department
Accounting department keeps records of transaction and financial affairs. Financial
information is maintained in the form of statement by accounting section.
Account office of mills keeps cash book, petty cash-book, vouchers in its record and
then prepare annual financial statement on the basis of these books.
Double entry system is followed .these financial statement s are prepared mostly for two
parties inside part and outside part.
Management is being considered as the inside party which takes necessary steps for
planning and controlling the future activities on the basis of these statement. While the
outside parties include owners, stockholders, bankers and creditors.
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Functions Of Accounts Department
To keep of cash receipts and payments of company.
To keep ledger accounts and the preparation of trial balance and annual reports
for these ledgers.
To maintain records of fixed asset and their depreciation.
To keep records of wages and salaries of employees.
To prepare various budgets such as production budgets, sales budgets, labor
budgets store budgets and inventories budgets etc.
Books of Accounts
Following are the main books which are used by the accounts office of KTM
A) journal
This is the book of original entry prepared by the accounts office, while this book is used
for recording, opening closing and adjusting entries.
b) Ledger
Ledger is the book which classifies the accounts which brought from ledger. This ledger
is divided vertically into
Two equal parts. The left hand half is known as debit (Dr) while the right hand half is
known as credit (Cr)
c) Cash book
This is the book of original entry in which all those transactions are recorded which are
related to cash receipts and payments. All cash receipts are recorded on debit side
while all cash payments are recorded on credit side.
this is also prepared by account office for recording all smaal sum of money with cashier
to meet all expences such as postage,telegram,stationary and office sundries.
this is register prepared by the accounts office for the purporse of recording vouchers
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Preparation of vouchers:
In account department different types of vouchers being prepared and their process of
preparation. Vouchers are written evidence of any business transaction. The different
type of vouchers being prepared by the account department of KTM is as under
Cash payment vouchers are used for recording the expenses. These types of vouchers
are prepared when cash payments are made against small expenses i.e repair;
entertainment etc in order to record the expenses following entry is passed
These types of vouchers are prepared when the cashier on behalf of the ktm is
receiving cash. However these types of vouchers are small in quantity because majority
of transaction are done by bank. On receipt of cash cashier prepared the cash received
slip, account officer prepares voucher on the basis of cash receipt prepared by the
cashier. In order to book the transaction of the following entry is passed in the books.
Being a public limited company the majority of payment transitions of ktm are carried
out through banks. Bills and invoices being approved by the competent authority reach
at the table of account officer for payment. Account officer checks the approval and
mathematical accuracy of the bill and prepares the bank payment voucher .account
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officer first confirms the nature of expense i.e. capital or revenue and deduction of tax if
applicable then pass the following entry
Bank receipt voucher are prepared when mill receive cheques against account
receivable Or advance payments.
One receipt of cheque account officer sends the cheque for clearing and passed the
fowling entry
If the collecting bank the reversal of above entry returns cheque is made in the books
On clearing of above reffered chque following entry passed in the books oof account
officers.
Purchase on credit
Sales on credit
Generally raw material,stores and spares are purchased on credit.in order to account
them
For the journal voucher are prepared by the concerned account officer
Sales on credit
Sales (local and export) are made on credit and at the time of delivery of goods
following journal are prepared by the account officer:
Copy
These journal vouchers are prepared in order to change the assets to expense for the
preparation of monthly accounts
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Account code expense a/c (debit) amount
Account payable a/c (credit) amount
In addition to above referred kinds journal voucher is also passed to rectify the mistakes
made in voucher preparation or posting.
Ledger posting
Computer operator make posting in computer. Accounts of ktm are computerized and
ledgers are prepared in computer .after the preparation and coding of voucher it is sent
to computer operator for posting .a daily print out of all entries is checked to check
accuracy. After checking the accuracy the master file is update and posting is made to
respective account ledger by the computer
Finance manger prepares daily cash flows statement in order to determine needs and
utilization of funds
A weekly projected cash flows statement is also prepared in order to determine the
need of the coming week. An account officer prepares bank reconciliation statement of
all the banks and list out the outstanding entries. He then traces the reason for these
entries and put bank reconciliation on the table of finance manager. On receipt of bank
statement the manager prepares cash flow statement and presents it to the finance
director for future action.
The Company continues its efforts to achieve debt reduction in order to improve its
long-term liquidity position. During the year Company has paid off its long term debt
totaling to Rs.544 Million and managed to further improve debt equity ratio from 23:77 to
11:89. Management believes that there is no inadequacy in capital structure in status
quo The Company's processing department has already reaped great benefit with the
collaboration of major multinational chemical suppliers who have cooperated with the
production teams to substantially reduce water, chemical and energy usage while
maintaining or improving quality, environmental, and technical standards. The Company
hopes that further progress in these projects will yield substantial reductions in the costs
of energy and other resources like water etc. Further, in anticipation of increased
scarcity and load shedding of natural gas and electricity, the Company is taking steps to
further diversify its energy production capabilities, expanding into steam generation via
wood, coal and bag gas.
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Problem Facing By Company
Conclusions
Company facing the problem of high cost of power generation on furnace and diesel but
still company is providing good quality products. KTM improve the operating cyle.ktm
mostly focuses on international customers .KTM has no advertisement strategy just like
its competitors like Nishat and Gul Ahmend. Only focus on international customer make
problem of insufficient working capital .due to insufficient working capital the directors
have passed over dividend payment in 2013.exhange rate fluctuation also affect the
export sales. Increasing competition in textiles from China, India
Recommendations:
Focus on advertisement strategy .advertise in international magazines
KTM should develop new markets.
Explore alternative energy resources.
KTM should also focus on local market.
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Reference:
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