Institute of Business & Finance
Department of Business Administration
INTERNSHIP REPORT ON
KOHINOOR MILLS (PVT) LIMTID
Roll No. NUML2-14-010
BBA (Hons) SCM
Session: from 2014 to 2018
Internship Report on
KOHINOOR MILLS (PVT) LIMITED
National University of Modern Languages
Faculty of Management and Science
It is hereby certified that the report has been thoroughly and carefully read and recommended to the Faculty of Management and Science for acceptance of final internship report by:
Session:(From SEP 2014 to JUN 2018) Morning
This is in partial fulfillment of the requirement for the degree of National University of Modern Languages, Lahore.
Panel Member Name:
Panel Member Signature:
Head of the Department:
Letter of Transmittal
Head of Business administration Department,
National University of Modern Languages,
IBF Campus, Lahore.
It is to present you the Internship Report which is executed at, KOHINOOR MILLS (PVT) LIMITED, as required by the university as a degree requirement for BBA (hones) SCM program.
This report has been prepared in accordance with the guidelines issued by the department. It is the result of my first professional experience.
This is a partial application, of whatever; I studied as a business graduate of National University of Modern Languages. In the report, I have covered the introduction of “KOHINOOR MILLS (PVT) LIMITED” detail of my work and learning in corporate environment. I am assisting Managing Director for assignments, but for learning assisting charge of each department.
I have put all my efforts to summarize my knowledge and experience in this report, to make it comprehensive and readers’ expectations
‘In the name of Allah, the most Gracious, the most merciful’
“All praises for Almighty Allah, Who guides us in darkness and helps us in difficulties and due respect for the Holy Prophet (Peace be upon him), Who enables us to recognize our creator.”
First, I would like to thanks Almighty Allah who gave me strength to complete challenging tasks ; His blessings that He provided me confidence, guidance ; strength to complete this report. The journey has not finished yet and I pray to Him to show me the straight path ; help me more in future as I am nothing without His blessings.
I render deep appreciation and gratitude to KOHINOOR MILLS (PVT) LIMITED staff, Specially MR. IMRAN MAZHAR and other staff for their valuable suggestions and kind cooperation.
I am grateful to the National University of Modern Languages and my respected teachers who gave me an opportunity to enhance my capabilities. This was very much helpful for me because, I have learnt a lot by applying theoretical knowledge in practical field.
I am also grateful to all the employees of KOHINOOR MILLS (PVT) LIMITED who guided me. The behavior of all the department supervisors was very good and they gave a lot of time to guide me. At the end, I would like to thank to my parents who always guided, supported ; directed me to the right way that enabled me to reach this stage.
Executive SummaryAs per requirement to complete BBA (Hones) SCM Program at “NATIONAL UNIVERSITY OF MODERN LANGUAGES”. I completed my Internship Program at “Kohinoor Mills Limited”. This is for eight weeks orientation prepared me to better understand the practicality of different tools of business administration. At the end of training program, it is required to submit an Internship report in university and Kohinoor Mills Limited. The Internship report has been completed, which is a result of one’s time taking efforts. I prepared this report as what I observed and what so ever I learnt here in Kohinoor Mills Limited. I also got the help of company’s published material.
This report provides detailed information about the leading textile company, which includes its history, company profile, mission and vision statement, aims and objectives, values and an analysis of the current and future outlook.
The report finds the prospectus of the company in its current position to be positive. The company not only tries to fulfill its mission and vision i.e. to become and then remain as the most progressive and profitable company in Pakistan in terms of industry standards and stakeholders interest but also fulfils its social responsibilities.
Introduction to Kohinoor mills (pvt) limitedAbout Kohinoor Mills (Pvt) limited:Kohinoor Mills has evolved from a small weaving mill established in 1987 to one of Pakistan’s largest vertically integrated textile operations with over 1800 employees and PKR 10.6 Billion in sales. Spread on a 100-acre state of the art facility in Lahore, according to the company’s most recent annual report it supplies over 90 million meters of world-class fabric to leading fashion brands, retailers, wholesalers in 20 countries around the globe.
The company is involved in three major businesses;
Dyeing ; Finishing
The company’s board and management’s aim is to create superior value for Kohinoor’s customers and shareholders and suppliers without compromising its commitment to the safety, environment and health of the communities in which it operates.
Kohinoor Mills Weaving Division:Kohinoor Weaving is the flagship division of the company. Set up a small 48-loom project on a green field site in 1988, it has now grown into a state of the art facility with 260 high-speed power looms from Toyota in Japan, and Picanol in Belgium.
The division produces 4 million meter of grey fabric every month, which is partially consumed upstream by the Dyeing division, while the rest is exported to clients in Southern Europe and Asia.
KWM has also diversified its operations into Jacquard fabrics for the local fashion industry and luxury clients in the US and Europe.
Kohinoor Mills Dyeing Division:Kohinoor Dyeing was set up in 2002 after a strategic decision by the company to move up the apparel value chain and compete with processing mills in Europe where manufacturing costs were becoming uncompetitive. After fifteen years of operations KDM is now a market leader in cotton stretch bottom wear for the fashion industry.
Through qualified R&D facility the organization have developed innovative fabrics and hand-feel finishes which have enabled the organization to become key suppliers for leading global brands like Zara, Levi’s, Ralf Lauren, American Eagle and Next.
The division produces 4 million meters of dyed, white and print fabric every month using cutting edge machinery from Bennenger in Switzerland, and Brugman in Belgium.
Kohinoor Mills Genertek Division:Pakistan is a developing country that faces energy shortages in peak months; this is very detrimental to industrial production. In 2003 Kohinoor Genertek was set up as an independent power plant to supply interrupted electricity to the other divisions of the company.
The division has an installed capacity of 30 Mega-Watts, which can be produced on a variety of fuel such as gas, oil, and biomass depending on seasonal availability. The division can also sell surplus energy to surrounding companies.
Registered Office ; Mills:8th K.M. Manga Raiwind Road, District Kasur, Pakistan
UAN: (92-42) 111-941-941
Cell Lines: (92-333) 4998801-6
Land Lines: (92-42) 36369340
Fax (92-42) 36369340 Ext: 444
Email: [email protected]
Other Corporate Information:Kohinoor Mills Limited is registered in Pakistan with Securities and Exchange Commission of Pakistan. The registration number of the Company is 0017194.
Kohinoor Mills Limited is listed on Pakistan Stock Exchange Limited as a Public Limited Company and its shares are traded under textile composite sector. Shares trading symbol is KML the National Tax Number of the Company is 0658184-6
Financial statements are available on website of the Company i.e., www.kohinoormills.com
Chapter#2Mission and vision of KML (pvt)
Mission Statement of KML:The company shall achieve its mission through a continuous process of sourcing, developing, implementing and managing cutting edge technologies along with industry best practices and top human resources to create innovative products and services for our customers while adding positive value for our stakeholders, suppliers and the communities we operate in.
Vision statement of KML:To create sustainable growth and co-existence for our shareholders, customers, suppliers, the communities we operate in and the environment.
Chapter#3Strategic objectives of KML (pvt)
Strategic business objectives:INNOVATION for consistent development of specialized product competencies.
Consistent improvement in QUALITY through combined commitment and focused monitoring.
To build competency ; transparency, in the system to reduce customer CLAIMS ; COMPLAINTS.
Retention ; Addition of CORE customers.
To develop CHANNELS into new and existing markets
REDUCED LEAD TIMES through additional capacity to gain higher contribution margin fast businesses.
Build Work-wear business competencies.
Develop and retain good HR
Development of business with LEADING LOCAL BRANDS with optimum utilization of looms width resulting in better per loom inflow.
To focus on business development with NEW LOOMS with better quality.
To concentrate and achieve EXPORT TARGETS
To make efforts for generation of electricity and steam generation from the available cheapest source to avoid high ENERGY GENERATION COST.
To carry on benchmark performance as per acclaimed ENVIRONMENTAL practices
To develop and promote the reputation and image of the Company for its STAKEHOLDERS in specific and NON-STAKEHOLDERS in general;
Full compliance with all the APPLICABLE LAWS and REGULATIONS;
Commitment towards team work to achieve common goals whilst fairly recognizing and REWARDING individuals contribution on merit;
To conduct uncompromising ETHICS and HONESTY at all times.
To adopt a distinct CORPORATE AND SOCIAL RESPONSIBILITY policy in order to contribute and securing the community within which it operates;
Avoidance of conflict of interest and JUSTICE to all irrespective of gender, ethnicity, beliefs, cultures and religion
Following are the products and services provided by the Kohinoor Textile Mills Ltd as per the divisions.
Kohinoor Weaving Division:The project was initially established with 48 Sulzer Ruti shuttles-less looms of 153″width from Switzerland with modern ancillary machinery to produce high quality fabric for export markets. Further expansions saw the installation of an additional 96 Tsudakoma air jet looms from Japan in 1990 and a third shed comprising 60 state of the art Picanol Omni 340 cm wide looms was installed in July 1998, twelve with batching motions. Another twelve Picanol Omni 340 cm wide looms were installed in 1999.
In 2000-2001 old 48 Sulzer Ruti looms were replaced by 48 lated Picanol Omni Plus 380cm looms. In addition to that latest Picanol Omni plus Jacquard Looms were also added as well as a yarn conditioning machine from Zorella was also installed. The entire manufacturing process from warping to fabric inspection is monitored through an online process control system from Barco. The marketing strategy is to explore new markets both in quota and non-quota countries.
Twills Jacquards Dobbie sateen
Yarn dyes Herringbone
Poplin / Canvases Broken twills
Kohinoor Dyeing Division:Kohinoor Dyeing has state of the art Dyeing & Finishing plant producing, Dyed, White & PFGD Fabrics with a capacity of 3.0 Million meters per month. Kohinoor Dyeing has a diversified customer base spread over different continents. It has long-term professional relationship with most of the High Street Labels and famous chain stores.
Reactive, Disperse, VAT, Sulpher and Pigment dyed fabrics for bottom wear in;
Poly cotton blends
Kohinoor Genertek Division:Kohinoor Genertek is a power generation plant, engaged in power generation and distribution since 1995. It has the generation capacity of 29.28 MW and comprises of the following types of Generation equipment.
Workforce The Company enjoys the services of professionals in its various departments with a total workforce of 65 individuals.
Turnover:It has a total turnover of US$ 10 million
Exporting Countries:U.S.A Europe Australia South Africa
Banana Republic Next Yakka King Gee Wools Worth
GAP Manago Charles Persons –
Target Zara Farah –
Tommy HF Carrefour – –
Arrow Brushka – –
Wal-Mart Rose by French Connection – –
Chapter#5Code of ConductIntroduction to the Code:
This code has been formulated to ensure that directors and employees of the Company operate within acceptable standards of conduct and sound business principles which strive for development and growth. The Company takes pride in adherence to its principles and continues to serve its customers, stakeholders and society.
Contents: This code identifies the acceptable standards under following headings:
Core values:The credibility, goodwill and repute earned over the years can be maintained through continued conviction in our corporate values of honesty, justice, integrity, and respect. The Company strongly believes in democratic leadership style with fair, transparent, ethical and high professional standards of conduct in all areas of business activities.
Operations:The Company shall formulate and monitor its objectives, strategies and overall business plan of the organization. The Company shall be continuously involved in the research and development of new products while improving quality of existing products using highest level of quality control measures at every stage of its operations. Creativity and innovation must prevail at all levels of hierarchy to achieve organizational excellence.
Abidance of Law: It is Company’s prime object to comply with all applicable laws and regulations and to co-operate with all governmental and regulatory bodies.
Corporate Reporting and Internal Controls:
The Company maintains effective, transparent and secure financial reporting and internal control systems so as to ensure reliable performance measurement and compliance with local regulations and international accounting standards as applicable. The Company strictly adheres to the principles of good corporate governance and is committed to high standards of corporate governance. The Company regularly updates and upgrades manufacturing and reporting systems so as to keep abreast with technological advancements and achieve economies of production.
Integrity and Confidentiality: The Company believes in uprightness and expects it to be a fundamental responsibility of employees to act in Company’s best interest while holding confidential information and neither to solicit internal information from others nor to disclose Company’s figures, data or any material information to any unauthorized person/body.
Inside information about the Company, its customers, vendors, employees shall not be used for their own gain or for that of others directly or indirectly.
No employees or his/her spouse will transact in the shares of the Company during the closed period prior to the announcement of financial results. Employees categorized as executives according to the requirement of code of corporate governance should also inform the company secretary immediately about transactions performed by them and their spouse other than during the closed period.
Whistle Blowing Policy:
The Company is committed to high standards of ethical, moral and legal business conduct and open communication. In line with these commitments the company placed whistle blowing policy on its intranet namely KNET to provide an avenue for its employees to raise their concerns and get assurance that they will be protected from reprisals or victimizations for whistle blowing matters such as unlawful activity, activities not in line with the company’s policy including code of conduct.
The Company believes in maximizing shareholders value by providing consistent growth and fair return on their investment.
The Company is an equal opportunity employer at all levels with respect to issues such as colour; race, gender, age; ethnicity and religious beliefs and its promotional policies are free of any discrimination. The Company ensures that employees work towards achievement of corporate objectives, individually and collectively as a team and conduct themselves at work and in society as respectable employees and good citizens. The Company believes in continuous development and training of its employees.
The Company has set high standards of performance and recognizes employee’s contribution towards its growth and reward them based on their performance. The Company believes development, growth and recognition result in motivated employees. All employees of the Company are part of Kohinoor family and the families of all members are also part and parcel of Kohinoor family. The Company believes that the sense of belonging to Kohinoor fulfils an essential need of its employees and the organization and as such will always be nurtured.
The Company considers it imperative to maintain cordial relationship with the customers as integral to its growth and development of business and is committed to provide high quality products and services that conform to highest international standards.
Environment and Social Responsibility:
Protecting the environment in which we live is an important element. The Company uses all means to ensure a clean, safe, and healthy and pollution free environment not only for its workers and employees but also for the well being of all people who live in and around any of the production and manufacturing facilities.
The Company will always employ such technology as may be beneficial in maintaining a healthy and hygienic working environment. It also believes in community development without political affiliations with any person or group of persons and contributes part of its resources for a better environment with an unprejudiced approach.
Chapter#6BOARD OF DIRECTORS
Mr. Aamir Fayyaz Sheikh
Chief Executive/Chairman – Kohinoor Mills Limited:With extensive experience of more than 30 years as a Chief Executive/Director of textile industry, Mr. Aamir possesses diversified business skills and effective leadership qualities and is dedicated towards effective policy decisions and corporate guidelines. He travels extensively and occasionally accompanies trade missions abroad as an active representative of the business community of Pakistan.
Mr. Asad Fayyaz Sheikh
Director – Kohinoor Mills Limited:With more than 20 years’ experience as a Director providing excellent services to the Company. He is serving as Chief Operating Officer of the Weaving Division and providing valuable services as a member of the Audit Committee. He is actively involved in negotiating the export businesses of the Company. The Board commemorates his contribution and professional dedication.
Mr. Ali Fayyaz Sheikh
Director – Kohinoor Mills Limited:
Providing valuable services as Director of the Company from last 20 years. He is also a member of Audit Committee and is contributing remarkably on internal audit matters.
Mr. Rashid Ahmed
Director – Kohinoor Mills Limited:
Mr. Rashid Ahmed contributed financial sector of Pakistan for more than four decades on key management positions. He enjoys influential contacts especially within corporate and banking community at domestic and international levels. Kohinoor Mills honors his valuable services not only on its Board but also as Chairman of Audit Committee. His contribution extends to corporate affairs guidelines, internal & external audit functions.
Mr. Aamir Amin
Director – Kohinoor Mills Limited (NIT Nominee):
Professionally a Chartered Accountant possesses experience of more than twelve years. The professional profile of Mr. Aamir Amin reflects diligent contribution towards corporate affairs and capital market of Pakistan. He has a diversified experience as representative of NIT at the Board of various companies from different business sectors.
Mr. Shahbaz Munir
Director – Kohinoor Mills Limited:A successful business executive with an extensive and rich experience in the field of Human Resource and Administration. He possesses a professional experience of more than 30 years and enjoys healthy contacts with businessmen, bureaucrat, Government departments and elite corporate circle. Presently, serving as Non-Executive Director of the Company and the Board considered his advice valuable and seeks guidance from his experience
Mr. Riaz Ahmed
Director – Kohinoor Mills Limited:Mr. Riaz Ahmed joined Kohinoor Mills Limited as a Non-Executive Director of the Company on March 31, 2013. He is a successful business executive contributed on key management positions of business relating to footwear and hospital. Mr. Riaz Ahmed completed his Master’s in Business Administration, from Institute of Business Administration, Karachi in 1964. His professional synopsis started right after his Masters and depicts the zeal and commitment. He served in the positions of sales & marketing manager, General Manager and as the Chief Executive not limited to Pakistan but to Somalia, Tanzania, Gulf Countries, Europe and far eastern countries.
Chapter#7BANKERSOF KML (pvt)
Bankers of KML:Kohinoor mills limited have accounts in the following banks for deal in national and international sales and purchase under different accounts for each division and department.
Allied Bank Limited
Al-Baraka Bank (Pakistan) Limited
Askari Bank Limited
Bank Alfalah Limited
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
MCB Bank Limited (formerly NIB Bank Limited)
National Bank of Pakistan
Silk Bank Limited
Standard Chartered Bank (Pakistan) Ltd
The Bank of Punjab
United Bank Limited
Chapter#8Organizational Chart of
KML (pvt)centercenterOrganizational chart of KML:
Chapter#9Procurement Department(The department where I done my internship)
Procurement:Procurement is the process of purchasing all the material required in an organization to run the production processes of the organization.
Procurement department can be considered as the backbone department of any organization because it is directly related to the production process of the organization. If purchasing of material is done wisely then the profit earned from products will be defiantly increased. The purchasing function is usually performed most economically and efficiently by a specialized, centralized purchasing department, directed by a skilled purchasing manager.
There are many ways to procure items in an organization. Some of the organizations do manually and others use software to procure items. Kohinoor mills limited is totally linked with internet based software that is oracle applications. All the process from purchasing to payment and production to sales is linked through oracle connected to KNET. The purchasing process starts by raising an indent of the required item or service within the organization and the process goes on through different steps performed by related department. We will discuss all the purchasing process step by step next in this chapter.
Organogram of procurement department:
Process Flow Chart:Start
Order Based/Irregular Items
Regular/ Fast Move
Purchase Requisition through Oracle System
Approved Vendor Items
Non Approved Vendor Items
SOP Of Procurement System:The complete operating procedure of procurement at Kohinoor mills limited is as fallow:
Approval by Department Head GM ProductionDGM Purchase
PAF Generation if required
Dispatch Cheques to Supplier (Purchase Department)
Complete Set (IGP+SRV+INVOICE+PAF)
Forward to Finance for Posting to Oracle
IGP + SRV forward to Purchase Dept
Invoice Collection (Purchase Dept)
Forward Ledgers for regular payments
If Ok SRV Generation If not OK rejected for return
Material Verification (Receipt Room)
Material Inspection (Concerned Dept/Store)
IGP Generation (Gate Staff)
Gate Entry (Security Staff)
Material In-house (Arrive at Factory)
Payment Process (if terms are advance)
Forward P.O to Supplier
Approval DGM Purchase
Generation of P.O
SOP Theoretical Explanation:The process starts by raising an indent from the head of the department where an item or service is required. The user or the respected departments enter a requisition the also called indent. The head of the department approves the requisition and forward it to the purchase department for further process.
Head of the procurement department approves the indent and forwards it to the related purchase officer. Purchase officer generates the Purchase order and send it to the supplier after the final approval of the head of the procurement department.
If the demand is irregular or for one time only then the purchase officer collect quotations from two or more than two vendors. After negotiation of rates the generates the purchase order and if it is demanded on regular bases or the firm have contract to any vendor for that the product then no quotation is required from other suppliers and direct the purchase order is generated.
Generation of PAF:In case of Capital items the related purchase officer generates the procurement approval from manually on Microsoft excel based format. After verification of PAF by Procurement Head and head of the department that raise the indent an approval required from head of the finance department and in last approved by the divisional head, After approval of the PAF the regular process of purchasing goes on and the purchase officer generates the purchase order.
After confirmation of purchase order companies driver pick up the item form the vendor or as per agreement the vendor deliver it at door where after gate entry by security and generation of inward gate pass the item delivered to receipt room for verification. If item is ok then deliver it to store from where the user or the respected department can collect it and if the item is rejected the after generation of and outward gate pass the item returned to the vendor. If the item is as per demand of the user then the process goes on next stage. Receipt room forward the gate pass and SRV to purchase department where corporate purchase officer collect the invoices from vendors and after completing the set of IGP+SRV+PO+PAF+INVOICE forward to the finance department where the finance officer updates the suppliers ledger as per amount mentioned in invoices. After the approval of supplier ledger by head of the purchase department for monthly payments the finance officer generates cheques and handover to the corporate purchase officer. And in last the purchase officer dispatches the cheques to the vendors.
-12065001456690Procurement Approval Form Sample:Chapter#9FINANCIAL ANALYSIS OF KML (pvt)
Financial Analysis:The accounts of any company either a manufacturing concern, trading concern or a banking company are amongst the most easily accessible collections data concerning their performance. However, if they are to be thought of as data they should convey some genuine information about how the firm is doing. That is to say, there must be some useful meanings that can be extracted from the figures in the accounts. Well-known technique for extracting such information from accounts is known as financial statement analysis. Financial Statements of any concern which are frequently used for financial analysis purpose are:
A summary of financial position on a given date is called Balance Sheet.
A summary of firm’s revenues and expenses over a specified period is called income statement.
Types of Financial Analysis:
Most practiced types of financial analysis include the following:
Common Size Analysis (Vertical Analysis)
Index Analysis (Horizontal Analysis)
Non Current Assets
Long term investments
Long term security deposits
Total Non Current Assets
Stores, spares and loose tools
Trade deposits and short term prepayments
Sales tax recoverable
Cash and bank balances
Total Current Assets
Total Assets Amount(pkr)
Non Current Liabilities
Long term financing – secured
Total Non Current Liabilities
Short term borrowings – secured
Current portion of Note
Provision for taxation
Total Current Liabilities
Stock Holder’s Equity
Surplus on revaluation of operating fixed assets-net of deferred income tax
Total Equity And Liabilities Amount(pkr)
For the Year ended June 2017
Income Statement/Profit & Loss Statement: For the year ended June 2017Total Revenue
COST OF SALES
PROFIT FROM OPERATIONS
PROFIT BEFORE TAXATION
PROFIT AFTER TAXATION
Earnings Per Share – Basic And Diluted Amount(Pkr)
2… Evaluation Performa
(Both documents to be Signed & Stamped by the Company)
253136-109728National University of Modern Languages
Institute of Business & Finance
Faculty of Accounting of Finance
Name of Intern:
His Internship started on (date) and was completed on
Please give a brief summary of internship.
Evaluation of Personal/Professional qualities of the intern observed during the internship.
Select one evaluation level of each area by making “X” under that level that represents the intern’s performance.
Excellent Good Average Poor Does Not Apply
Ability to adapt to a variety of tasks Decision- Making, Priorities Judgment, Setting Persistence to complete tasks Reliability and dependability Enthusiasm for the experience Attention to accuracy & details Willingness to ask for and use guidance Ability to cope in stressful situation Ability to organize, classify and deliver information effectively Ability to plan with and work
co-operatively with others Professionalism; Demonstrated interest related to the field in the issues, policies and organizations Additional Comments:
Signature & Stamp of concerned Official & date of evaluation: