Professional Documents
Culture Documents
PREFACE
One of the secrets of a successful economy is a well developed and well run financial sector. The existence of money and other financial assets facilitates the allocation of economic resources where they can more profitably be used. If we really want to understand how our economy works, it is necessary for us to understand how the use of financial assets leads to the better use of real assets. Understanding how the financial sector works and how it is related to the real sector is why we study finance. Many important personal decisions are financial. Paying for a home or an automobile are two very large examples, but even day-to-day decisions such as planning a budget, opening a checking account, or making investments call for a knowledge of finance. There are many firms that specialize in things financial. The primary concern for most of these firms is pooling the funds of those who have a surplus of funds and invest it in those firms that have a need for the funds.
ACKNOWLEDGEMENT
I thanks to ALLAH Almighty, the most beneficent and merciful to everyone, who gave me ability and courage to successful, complete this work, because I am nothing without his blessings for me. I wish to express my love and obliged for my mother for all those nights he spent praying for my mission, and me. My mother whos rising gave me character and a compassionate heart. Special thanks to below mentioned personalities at Crescent Bahuman ltd; Mr. Mukhtar Ahmad Mr. Asad Ullah Khan Mr. Salman Ahmad Mr. Javaid Ahmad Mr. Rizwan Ali Mr. Kashif Munir Mr. Aamir Nadeem Who have contributed and allowed me to participate in all kinds of professional development.
DEDICATION
This project is dedicated to the greatest man in the world that show us the right path and Who is the great benefactor of the mankind that is Holy Prophet Hazrat Muhammad (PBUH) and to parents and Honorable teachers. And To those people who love Humanity.
INTRODUCTION
The opportunity of completing the BS.COMMERCE (HONS), provided to me GC UNIVERSITY FSD, is a great honor for me and many other students of same kind. All though I faced a lot of problems regarding availability of reference books but by the Grace of Gods help and by sheer dint hardworking I have qualified all the credit courses. Having completed my internship report, now I am on the verge of receiving my degree, for which I have long aspired. During my internship, I have tried to probe into all the aspects of marketing specially communication with in the organization and directly outside foreign customers. INSHALLAH all the knowledge gained through theoretical and practical aspects of study will guide me in my practical work experiences at job in future.
Further inroads into the financial sector were made by the group in early 90s when it established 3 new Modaraba companies. First Crescent Modaraba, among them, become one of the largest modaraba companies in Pakistan in years ahead. First Crescent Modaraba in the years to follow turned out to be the parent company of the existing Crescent Standard Investment Bank Limited, which is now the largest investment bank in Pakistan. The Group also tapped into the countrys housing finance sector and incorporated International Housing Finance Limited in 1990. Besides establishing the new companies in the financial sector, the Group also started a series of takeovers and acquisitions and acquired Crescent Leasing Corporation Limited as part of its expansion strategy in the sector. Crescent Leasing Corporation Limited now stands among the most reputed and well renowned leasing companies in the leasing industry. The group entered the brokerage services in 1995 and took over Shoaib Capital (Pvt.) Limited to rename it as Crescent Capital Management (Pvt.) Limited.
First part of the groups financial sector penetration strategy was to acquire and establish companies with diversified operational bases and the second phase which was the consolidation phase saw some of the most pioneering and complex mergers in the history of Pakistan in respect of the number of companies involved. Crescent Standard Investment Bank Limited, which now stands as the largest investment bank in Pakistan, is also the result of multiple mergers and acquisitions involving 7 of the above mentioned companies that were bought in the nineties and early 2000s.The latest acquisition undertaken by the Group is in the energy sector. Altern Energy Limited was taken over by the Group in early 2005. Crescent Group now runs its fastest growing financial sub-conglomerate by the name of Crescent Standard Group, which is lead by Mr. Altaf Saleem, Mr. Ahsan Saleem and Mr. Anjum Saleem, who represent the third generation of the Crescent family.Following table depicts the chronology of developments (incorporations and acquisitions only) that were followed by the Group in entering new business venues over its history.
Company Crescent Textile Mills Limited Muhammad Amin Muhammad Bashir Limited Premier Insurance Crescent Sugar Mills Limited Crescent Jute Shakarganj Mills Limited Shams Textile Mills Limited Crescent Board Mills Limited Crescent Steel & Allied Products Limited Suraj Cotton Mills Limited Pakistan Industrial Leasing Corporation Limited International Housing Finance Limited First Crescent Modaraba
Date of Incorporation / Acquisition by Crescent Group 1950 1951 1952 1959 1964 1967 1968 1977 1983 1984 1987 1990 1990
Crescent Standard Business Management Crescent Investment Bank Limited Crescent Software Products Limited Crescent Bahuman Limited Crescent Leasing Corporation Limited Crescent Capital Management (Pvt.) Limited Crescent Commercial Bank Limited Crescent Standard Brokerage Al-Towfeek Investment Bank Crescent Standard Modaraba Fidelity Investment Bank Limited Safeway Mutual Fund Asian Stocks Fund Altern Energy Limited
1990 1989 1992 1993 Taken Over in 1993 Taken Over in 1995 2002 2002 Taken Over in 2002 Taken Over in 2003 Taken over in 2003 Taken Over in 2003 Taken Over in 2004 Taken Over in 2005
2. OBJECTIVES OF STUDYING THE ORGANIZATION The main objectives for choosing the Crescent Bahuman Limited Pindi Bhattian for practical study are as under: 1) Successful completion of studies regarding MBA program. To gain insight into the Marketing System of Crescent Bahuman Limited (CBL). 2) CBL is one of the biggest jeans manufacturing unit of Pakistan and I wish to observe through this organization the dealing the Management of CBL with all the concerns, i.e. employees, for department and customers. 3) CBL is considered to be the symbol of success and well known for its consistency, best quality products and its use of the most modern methods and technology. 4) CBL is one of the largest manufacturers and leading exporter of textile goods in Pakistan, exporting quality products throughout the world. 5) CBL is passing through rapid demographical changes which are the cause of structure and administrative change. 6) To enhance the ability to deal with different type of people. 7) Industries have always been a favorite field of interest for me. 8) Through this practical experience I wished to know about the latest developments in Marketing throughout the garment sector in Pakistan especially in CBL.
1.5.1 Leadership
Walk the talk Empowerment Problem resolution Ownership of responsibility Acceptance of mistake Use of authority
1.5.2 Accountability
1.5.3 Team Work Sharing and participation Team Spirit Facilitate Alignment 1.5.4 Growth Result orientation Innovativeness Willingness to learn
1.5.5 Ethics
Departments of CBL
1 Human Resources and strategy 2 Finance 3 Information technology 4 Engineering 5 Marketing 6 Supply chain 7 Industrial Engineering 8 Product Development 9 Spinning 10 Weaving 11 Cutting 12 Sewing 13 GWP 14 Quality Assurance 15 Stonage
C. A. B. C.
2.8.2 Objectives
To ensure alignment of people, processes, strategies and facilitate the organization in concern of to achieve the CBL goals. Make people in term of to achieve the personal and professional objectives fulfilled
2.8.3 Services
Establishment and implement of all HR related policies and procedures Determine the training needs of managers and ensure their development through external internal trainings programs Bring positive change in attitude and personality Ensure the employees and organization development Implement the orientation training at all level Ensure the fair and equitable pay structure Ensure the international quality standards
2.8.7 Confirmation
When employees complete the probation period according to their grades company issue a confirmation letter
IMPORT
This division deal with only to foreign parties such as Levis. Ben Sherman Paxar international etc.
ACCOUNTS PAYABLE
This division deal only in local parties such as Sapphire textile, pay hotel expenses mess expenses etc.
PAYROLL
The payroll division handles payments to all full-time and part-time employees on a bi-weekly basis. In addition all checks for the self-insured medical plan, reports for workers compensation, and local taxes, and all other payroll related items are handled by this division.
TAXES
The department of taxation received revenues. The department processed individual and business returns during the year, not including the quarterly withholdings and estimated payments. Withholding accounts were mailed remittance coupons for tax year. The department processes the quarterly estimated tax payments and handles pieces of mail each year.
DEPUTY MANAGER FINANCE SENIOUR ASSISTANT MANAGER ASSISTANT MANAGER JUNIOUR ASSISTANT MANAGER
ACCOUNTS PAYABLE
Mr. Kashif Munir (S1) Mr. Imtiaz Ahmed (S1) Mr. Izhar Ghouri (S1)
TAX
Mr. M. Shafeeq (DM) Mr. Tahir Ikram (S2) Mr. Shahbaz Khan (S2) Mr. Sohaib (S3) Mr. Atif (S4)
PAYROLL
Mr. Muhammad Farooq (JAM) Mr. Arshad (S1)
GL (ORACLE)
Mr. Usman (S2) Mr. Tahir Ghazi (SAM)
FIXED ASSETS
Mr. Tahir Ghazi (SAM) Mr. Fayaz (AM)
RECORD KEEPER
Aamir Nadeem (S4)
Six- Sigma
Six-sigma is an initiative based on statistics and designed to streamline processes and increase profitability Project based training on Six-Sigma, spread over four months, and was conducted by a renowned foreign trainer at CBL in 2003. CBL is the first company in textile sector to have 15 employees trained as black belts in various function areas
4.1 ISO (9000 & 14000) 4.2 WRAP 4.3 IFC 4.4 WORLD BANK Products of CBL
Jeans Pant Jeans Jacket
PRIMARY WORK
I have divided my work in following parts Reconciliation Statement Preparation of cost sheet Transaction in Oracle
RECONCILIATION STATEMENT
The purpose of this exercise is to reconcile own companys statement with the records of other company. A valuable thing about a checking account is that it provides a double record for the depositor--one maintained by the company (depositor) and the other by the bank. The banks record, called a bank statement, is sent periodically (usually monthly) to the company. Whenever a bank statement is received, for control purposes an appropriate person within the company should reconcile the bank statement with the companys own records. This reconciliation accounts for differences between the two records. These differences are usually one of two types: one is comprised of lag by the bank or the company. Of course, once identified, errors can be corrected. Furthermore, the company is assured of the amount of cash available to it at the bank. For the best control, many companies reconcile both balances and transactions. This assures that the bank account is not being used for unauthorized purposesfor example, an unauthorized deposit and withdrawal for the same amount. Pertinent data necessary for the completion of the bank reconciliation are as follows: As of June 30,19X1, company had outstanding checks amounting to Rs. 28000 and deposits in transit equal to Rs. 35000. These items cleared the company in July. The July companys statement did not include the following data: Check No. Amount Deposit date Amount 751 12000 July 29 14000 800 13000 July 31 30000 802 4000 None of the above checks were outstanding on the June bank statement. NSF (no sufficient funds) check of customer for Rs. 820 deposited on June 25 was charged back by the bank on July 10. The company contacted the customer and redeposit the check on July 15. The way we understand bank reconciliation should look or at least the fundamental components: Statement closing balance for period GL Bank Account balance for period
Total unpresented Cheques for period Total AR unreconciled items for period Total cash management unreconciled statement lines for period
STANDARD WAY
The above would help us in the bank reconciliation we currently prepare manually. The formula is: Bank statement closing balance for period A Plus unreconciled AR B Less unpresented Cheques C Plus unreconciled CE lines D Plus/minus manual corrections E Equals Bank balance F Gen. Ledger account bal for period G Result F=G In the above formula, we would work out the manual corrections ourselves, but we expect to get the other totals from the cash management report. Now the current report shows the following: BANK POSITION: Closing bank balance 4880909.15 (entered from statement) Lines marked as errors 0.00 Adjusted Closing Bank balance 4880909.15 GENERAL LEDGER POSITION: Balance per GL 4983396.11 Statement items reconciled to future period 3882910.84 Adjusted GL balance 8866306.95 CASH MANAGEMENT POSITION: Total reconciled in statement lines (40476645.75) Total Unreconciled in statement lines 62.87 Adjusted closing bank balance (40476582.88) DIFFERENCE: 45357492.03 The above report shows no comparison of the main figures. Furthermore the manual does not explain how to make comparison of these figures to determine the difference between the GL and the bank.
ACCORDING TO CBL
First Step is to tick the invoices of own ledger with the partys ledger. Second step is to tick the payment of own ledger with the partys ledger. Next is to find out unmarked payments and invoices. Next is to prepare reconciliation statement. Following is the sample of Reconciliation statement:
00000
Debit Note
Bill# 124
Income Tax
Bill# 125
00000
program, it will typically reduce research and development expenditures and focus on post-development activities such as production, sales, and general and administrative expenditures.
DEFINITION OF TERMS
The following definition of terms will provide a common basis for discussion: Recurring production cost = Production labor + Direct materials + Process costs + overhead + outside processing Non-recurring costs = Development costs + Tooling Product costs = Recurring production costs + allocated non-recurring costs Product price or acquisition costs = Product costs + selling, general & administrative + warranty costs + profit Life cycle costs = Acquisition costs other related capital costs + training costs + operating costs + support costs + disposal costs.
PURPOSE:
Its purpose is to record the expenses. To find out the total cost of import. To find out the per unit rate. IMPORTANT THINGS: Three things are necessary Estimated cost sheet No. Control No. Purchase order No.
DOCUMENTS:
Following documents are necessary for the preparation of cost sheet. Suppliers Invoice Agents Bill Freight Bill Form of tax After the completion of above requirements we can prepare cost sheet by using computer.
FOC:
FOC stands for free of cost. Sometimes customer such as Levis send their own choice of trims to CBL now it is recorded as free of cost but CBL has to beard some expenses on it such as transportation expenses. But when the customer paid the amount that amount is deducted from his payments.
measure decisions across the enterprise. The system provides businesses with everything they need to control costs, analyze performance, evaluate opportunities, and formulate future direction. Oracle Financial is part of the Oracle E-Business Suite, an integrated set of application, which is designed to transform your business to an e-business.
DATA LOADING
With its extensive loading capabilities, Financial can easily accept and validate data from general ledges, spreadsheets, relational databases, and other operational systems.
DECISION MAKING
Oracle Financial integrates with oracle general ledger. This integration eliminates the need for duplicate data entry and structural maintenance, and thereby provides a more cost-effective financial management.
Click copy then click on parameters and enter %May04% Click find then click on J V import 04 and then OK Click refresh data
Transaction of clearing charges: Suppliers name is that name which is entered on the top of expenses list Enter invoice no, date and then amount of invoice Click on distribution Enter amount in the account column and press Ctrl + L Enter code of account Click[] enter IRN use tab enter #, date and PO# If the system give a message of error then in IRN # enter additional A and click on OK and save
SECONDARY WORK
VOUCHERS FOUNDING VERIFICATION OF VOUCHERS, COST SHEET AND TRANSACTION CORRECTION OF VOUCHERS, COST SHEET AND TRANSACTION PRINTIN OF VOUCHERS,COST SHEET AND RECONCILIATION STATEMENT BOX FILLING OF VOUCHERS
BUSINESS VOLUME
The balance sheet and profit and loss account together will show the business volume of CBL for the year ending on 30th June, 2007.
60,000,000
60,000,000 105,466,103 165,466,103 127,184,820 Non-current Liabilities Long term loans Liabilities against assets subject To finance lease Deferred liability Staff retirement gratuity 329,868,755 115,946,982 10,823,609 456,639,346
Current Liabilities Short term bank borrowings Current portion of long Term liabilities Creditors, accrued and other Liabilities Provision for taxation Income tax
Non-Current Assets
Fixed assets Long term deposits 597,278,955 5,554,985 602,833,940 578,182,168 2,550,543 580,732,711
Current Assets
Stores, spares and loose tools Stock in trade Trade debts Short term investments Advances, deposits and prepayments Other receivables Cash and bank balances 146,866,290 709,655,037 165,148,491 1,440,750 198,593,943 81,033,815 24,390,730 1,327,129,056 1,929,962,996 124,260,241 544,866,136 108,295,886 61,440,750 129,885,968 120,640,588 12,522,481 1,101,912,050 1,682,644,761
Crescent Bahuman Limited Profit And Loss Account For The Year Ended June 30, 2007
2007 Rs. Sales Cost of sales Gross profit Other operating income Distribution cost Administrative expenses Other operating expenses Finance cost 1,635,312,974 1,335,183,123 300,129,851 13,744,095 313,873,946 109,577,996 25,295,365 3,594,949 114,277,712 252,746,022 Profit for the year before taxation Provision for taxation Profit for the year 61,127,924 22,846,641 2006 Rs. 1,576,661,597 1,373,637,814 203,023,783 642,583 203,666,366 101,943,921 24,414,544 1,720,656 46,032,774 174,111,895 29,554,471 16,273,201
3.4
PROFILE OF EMPLOYEES
Percentage
Executives
25
0.40%
Managers
275
4.40%
Supervisors
300
4.81%
Assistant Supervisor
589
9.45%
Sr. Staff
386
6.20%
Operators
87
14.10%
Assistant Operators
3778
60.64%
Total
6230
100.00%
8.1 STRENGTHS
The main positive points of the CBL are as under: 8.1.1 Biggest Unit. CBL is one of the biggest unit in Asia and Pakistan. It exports 8 Million jeans annually to foreign countries. It can produce 30000 jeans per day. So that's why he CBL is at top in Production wise. 8.1.2 Working Environment. CBL provides employees a environment friendly working environment. Waste material is disposed very carefully after cleaning in the cleaning plant. Thats why employees feels very comfortable during the work does not feel any job stress. 8.1.3 Professional People CBL always hires well educated and professional employees. Thats why all the people in the marketing department are fully trained and very professional. 8.1.4 Communication Communication is key for the success of any organization. Thats why in CBL communication with customers, with in department, and between the department is very sound. 8.1.5 Vertically Integrated CBL is basically vertically integrated company in which all the material used in preparing jeans including fabric, thread, washes, and packages material are providing himself. 8.1.6 Quality Conscious Quality is the main factor for the success of any organization. Thats why CBL is ISO 9001 certified company for his quality products. 8.1.7 Compliance In compliance, CBL is number factory in Pakistan.
8.2 WEAKNESSES
After the description some positive points of CBL, now we discuss some weaknesses of the organization. These are as under: 8.2.1 No Direct Marketing CBL is not doing direct marketing. Its people are just working to retain the customers which is providing by AMOL. 8.2.2 Marketing Setup The marketing setup in the top management is good, but in the bottom setup is very poor because no concentration is given to the capture the local market. 8.2.3 Basic Styles CBL is just working on basic styles because the location of the organization is in an illiterate area where skilled people are not available. So it is very difficult for CBL to hire professional people at huge cost. 8.2.4 No Job Rotation People are just doing their own specialized work within the department and there is no job rotation at any level. 8.2.5 High Overheads Because CBL is providing a lot of facilities to employees such as free transportation, free gas, fee electricity and free residency. So it bears a lot of extra expenses in shape of high overheads. 8.2.6 High Liabilities CBL is also borrowing a lot of money from local banks for new developments and provide lot of facilities which are necessary to fulfill the customer demands. Thats why it has high liabilities. 8.2.7 No Advertising Because local exports are very low, so they use no print media or advertisement on radio or T.V.
8.3 OPPORTUNITIES
Some of the areas in which CBL can improve a lot are as under: 8.3.1 Fabric Marketing Organization has the capacity to produce a lot of fabric. If proper marketing program is launch to attract new foreign customer then, it can earn a lot of money. 8.3.2 Fashion CBL is just working on basic styles. It has the opportunity to concentrate on some fashionable styles in order to capture the fashion market in local as well as in foreign countries. 8.3.3 Other Areas Of Textiles CBL can also move to other areas of textile like twill. 8.3.4 Launch Own Local Brand CBL can also presents his products in local market by launching well prepared marketing plan in order to capture the local market share.
8.4 THREATS
Now we discuss some potential threats which may effect the organization. We describe them one by one: 8.4.1 Political Instability Now a day in Pakistan, political instability is the main concern for foreigner investors because it affects the economy of Pakistan very badly. This situation can create problems for CBL to retain its customers. 8.4.2 Extremism and Terrorism Extremism and terrorism can effects the products of CBL because it creates a hateful passion for Muslim against Islam. 8.4.3 Regional Competitors Regional countries like, India, Bangladesh and China are progressing in garment sector very fatly and furiously. These foreigner countries and some local factories can be potential threat for CBL. 8.4.4 Law & Order Situation Now a days, in Pakistan the suicide attacks create a very furious situation which is very harmful for economy of Pakistan. It can create problems for CBL to attract new foreigner customers or retain the new customers.
8 Contract Areas
There are two areas related to contract, which are as under: 8.1 CBL School System The main function of this school system is to facilitate the employees at all levels and quality education of their children the main purpose of this school system is to retain the potential employees of CBL. 8.2 Main Highlights of CBL School System Admission open in this setup annually basis. Classes from playgroup to metric level. Fully Oxford syllabus system. Attractive and air conditioned class room. Female teachers are preferred for playgroup. Minimum qualification of teachers is master in any discipline. Recruitment process for teachers under the control of HR department. Formal and informal activities to create the leadership quality in children. Arrange the competition function related to speeches, poetry and others annual celebration of Pakistan. Annual results function are arranged and appreciate the capable students of all classes. Teachers are bounded to strictly look after the all types of activates of children. The progress reports of students are sent to their parents. 8.3 Construction Areas For the further development of production, services, administration and residential areas for bachelors and families. Construction tenders are assigned to those contractors, have complete construction machinery, proper labor force and follow the applied rule regulation related to construction field. A special department of CBL check the requirement of construction, terms and conditions mentioned in the assigned tenders.
9. CONCLUSIONS IMPROVEMENT
AND
RECOMMENDATIONS
FOR
After studying the organization I have reached on a point where I can suggest what I inferred from this period which I spent their. 9.1 CONCLUSIONS The practical study which I carried in this organization was very informative for me because it provides me the chance to see the actual working environment in the light of management theory. This also gives me the occasion how we can implement the theoretical knowledge in the working environment.I have seen the different departments most of them are working well. However I have also taken the critic notes of the working ways and conditions of different departments. There I found some weaknesses and flaws along with the good working styles of the workers and the supervisors. 9.2 RECOMMENDATIONS Analyzing all the chapters conclusions and the interviews and surveys that I have conducted, it is finally concluded that CBL management is working in a more focused and formalized manner.However, to achieve their objectives successfully on the International standards,following suggestions are offered: The CBL must concentrate in the local marketing to increase the profit. The management should take keen interest in exporting the fabric to different countries. It is highly recommended to the CBL management that they should more emphasize on hiring highly qualified and fresh degree holders because it brings innovation. Moreover highly qualified staff can run the management in a more formalized and focused manner. It is recommended to CBL that they should go for news paper advertisement also, both for recruitment purpose and for the purpose of gaining employees of capable abilities having not access to internet. It is highly recommended to the management that the orientation must be conducted in a formalized manner. All the activities that have to be completed in the orientation process must be documented on a checklist. After the completion of the orientation process the checklist must be remarked and signed by the newly hired employees, as well as by the supervisor/ head of the departments who are actually conducting the orientation. Finally the checklist must be reviewed by the personnel manger, to make sure that the orientation process has been completed properly. It is recommended to the CBL management, that the department mangers must also be given opportunity to go abroad for updated training courses. The experience gained by foreign training courses will make the department managers better able to groom their department employees according to the new techniques being practiced internationally.
The CBL management must also arrange local training sessions for special purposes to be refreshed after every 3-4 months, like stress management, time management, crises management etc. The audio/ visual tools must be used while training lectures. Case studies must be conducted and training literature must be provided to the employees. Employees attendance in the training classes must be strictly maintained. The annual increment in salaries of the employees in CBL is provided according to bargaining at the time of interview, it should also be awarded according to the performance as well. Moreover it is recommended that the CBL management should increase the annual increments in salaries in order to reduce the high turn over rate in employees. In case of outstanding profits earned any year, the CBL management should give credit to the employees by giving them bonuses. This practice will contribute a lot to employees motivation and involvement with the Organization Moreover Eid bonuses may be given to employees.
Comments Name__________________________ 1. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ____________________________ Signatures_______________________ ____ Name_______________________________ 2. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ____________________________ Signatures_______________________ ____ Name__________________________ 3. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ____________________________ Signatures_______________________ ____ Name_______________________________ 4. ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ____________________________ Signatures_______________________ ____
3. OVERVIEW OF THE ORGANIZATION The history, business volume and product line of the organization are discussed as under: 3.1 BRIEF HISTORY Planning Initiated: Land Purchasing: Civil Work Started: Contract to be given: Sub Contractors: June 1993 (site selection) August 18, 1993 February 4, 1994 (Akber & Associates) (MCC, Guarantee, Selecto Paragon) Total Area of Land: 174 Acres Erection Started A/C (Luwa): August 8, 1994 Erection Started (Spinning): September 8, 1994 Erection Completed: December 1994 (Textile) Production Started (trail basis): Late January 1995 (Textile) Production started (commercial basis): June 17, 1995 Cost at Close (Approx.): 80 Million US $ TEXTILE DIVISION MACHINERY & EQUIPMENT SPINNING Waste Recycling Plant 1Line Trutzschler (Germany) Blow Room 2Line Trutzschler (Germany) (One for Ring & Other for O/E) i. Well Equipped Machinery 6.3 PRICING STRATEGY The value, usually in monetary terms that sellers ask in exchange for the product s they are offering. Second but most important element of the marketing mix is price, the amount a marketing organization charges for its products, whether the products are goods, services or ideas. As stated above Crescent Bahuman Limited have different product lines, i.e. ALF, LEVIS BESHERMAN, EXPRESS, LIMITED, CARRERA, MUSTANG, and other miscellaneous products. The management of CBL has to adopt different methodology for affixing the price of each product which is briefly discussed here.
First of all when customer sends the request of a sample, the IE department collects the different information about the availability of material and then adds all the expenses of different things which the customer require. Then the IE department send the cost summary to marketing department where they add their own markup on cost and send it to the customer for further negotiation. For example their prices for levis and non levis are as under: Basic (If 5 pocket then prices are as under) Levis Non levis 14~20 US$
4-7~14 US $
6.4 DISTRIBUTION STRATEGY The process of moving products from the producer to the consumer, which may involve several steps and the participation of multiple companies is called distribution. The above definition is for all type of products whether it is goods, services or ideas. The place of our factory is convenient and we have transport facility. As big manufacturer Crescent Bahuman Ltd has adopted customer orient distribution strategy for distribution of goods. There are defined lead times for all customers but some time Crescent Bahuman Ltd favored customers and ship goods by using air mode to make the delivery on time. Some times customer requires sea shipment then at main head office CBL has its own sales force to handle export problems and they maintain positive relationship with customer to provide right product at the right time. 6.5 PROMOTIONAL STRATEGY A variety of techniques, including advertising, sales promotion, public relations and personal selling, that is used to communicate with customers and potential customers. As for as the promotional strategy of Crescent Bahuman Limited is concerned, a separate organization AMOL ( Apparel Marketing Operations Limited ) in Ireland has been established in 1994 for the promotion of CBL products. They convince the different customers that they can provide them their different product at low cost. If they are ready then send a sample request to marketing department at the central unit. The whole process to attract a new customer is discuss here.
3.5 PRODUCT LINES
CBL is producing more than 300 styles of denim products and more than 200 developed washes with over a 100 customer approved fabric resulting in a dynamic mix of finished & jeans wears. The finished produced includes skirts, shorts, jackets and trouser are one or a combination of the following finishes:1. 2. 3. 4. 5. 6. Whiskers Brushing Scrapping Spray (Robot spray) Sand Blasting Tinting
CBL specializes in working closely with its customers to develop a wide range of unique products. For Product Development, CBL is equipped with a highly dedicated team and state-of-the-art equipment to churn out new products at the speed of market demand. Crescent Bahuman has had the honor of working with the leading brands from four corners of the word. The varied regional mix of customers provides CBL with adequate global market information which in turn adds value to all of its customers. At the same time strict measures are in place to ensure that the product information for one customer is not shared with other customers.
INTRODUCTION Finance is an art of managing money. And for this purpose, CBL has formulated a finance department to look after the existing funds and to generate new methods for generating funds. The Finance department in CBL comprises of well educated, professional and intelligent personnel who by using their skills trying to benefit company. Everyday finance department is busy in such activities that what new methods to be explored so that cost is reduced and profits and revenues be increased. As CBL deals in number of activities, such as purchases both local and import, sales both at national and international level; then funds are obtained from Banks and much more. So, Finance department performs the activities of recording, summarizing and than at the end making decisions in order to provide cost beneficial solutions. The scope of work covers payroll processing, Imports recording and updating accounts payable, recording collections and updating accounts receivable ; then the major portion is of costing and budgeting of every item that is produced in CBL ; then the maintenance, recording and valuation of fixed assets, negotiations with banks to obtain funds and fair calculation of interest to be paid annually or quarterly, and in performing all this complying with all the laws, accounting principles and regulations.
Also, all inventories are in control of finance department. All records regarding material in and out of company premises are accounted by finance personnel. WORKING ENVIRONMENT The working environment of finance department is a good and better place to work but it more needs to be renovated. The personnel are sophisticated and talented ones. The environment is very encouraging and learning one. RECOMENDATIONS Although the department is performing up to the mark, but it needs some further improvements in order to rise as an excellent performer. The layout of sitting needs to be changed. It should be in organized manner. The existing structure gives a clumsy look at a glance. The files and other data records needed to be kept into secured lock racks. The records to be only in access of finance personnel. But now it is in access of a