Internship Project On Interloop Limited

INTERLOOP
LIMITED
THE LARGEST MANUFACTURER

AND EXPORTER OF SOCKS IN
PAKISTAN
AN INTERNSHIP
ON
Interloop Limited, The hosiery miracle of Pakistan
By:
NAME: MOHSIN RASHEED
ROLL NO: 220677
Submitted To: Mohi-ud-Din Islamic University Nerian sharif, Ajk in

Partial Fulfillment of the requirement of the degree of Master of business
Administration (Finance)
June 22, 2012

DEDICATED TO,
My parents and the Respected Teachers who Always try to find ways And thinks to provide which
I do not know and don‟t have
Contents
PART-I INTRODUCTION..........................................................................................................12
CHAPTER 1.............................................................................................................................12
1.1 OBJECTIVES OF STUDYING THE ORGANIZATION.............................................12
1.2 COPMANY PROFLIE...................................................................................................13
CEO Message.......................................................................................................................14
1.4 BOARD OF DIRECTORS.............................................................................................15
CHAPTER 2 OVERVIEW OF THE ORGANIZATION......................................................19
2.1 History of interloop Limited............................................................................................19
2.2 Nature of the Organization.............................................................................................20
2.3 STATUS OF BUSINESS...............................................................................................20
2.4 Organizational structure.................................................................................................21
2.5 Management level..........................................................................................................23
2.6 Business volume............................................................................................................23
2.8 CERTIFICATIONS.......................................................................................................26
2.9 Policies of interloop Limited..........................................................................................27
CHAPTER 3.............................................................................................................................30
CORPORATE OBJECTIVES AND COMPANY IN GENRAL..............................................30
3.1 Corporate Social Responsibilities...................................................................................30
3.2 Environment of company...............................................................................................36
2.3 Customer‟s Profile.........................................................................................................37
2.4 The Achievements of Company.....................................................................................41
2.5 company‟s Products.......................................................................................................45
Chapter 4..................................................................................................................................50
4.1.................................................................................................................Administration Department50
4.2 HR & Development Department....................................................................................51
4.3 MERCHANDISING DEPARTMENT...........................................................................52
4.4 EHS Department............................................................................................................55
4.5 Engineering Department................................................................................................56
4.6 IMPORT & EXPORT Department.................................................................................57
4.7 MIS Department.............................................................................................................59
4.8 Organizational Development Department......................................................................60
4.9 Introduction of Production Planning & control (PPC) & Production Development (PD)
......................................................................................................................................... 62
4.10 P&S Department................................................................................................................63
4.11 Productivity Improvement Department........................................................................65
Chapter 5 Export Performance of Interloop Limited.............................................................66
5.1 Introduction to Export Department................................................................................66
5.2 Objectives:.....................................................................................................................66
5.3 Achievements.................................................................................................................66
5.4 EXPORT DOCUMENTATION.....................................................................................67
5.5Company as a.................................................................................................................69
Proud Manufacturer of Prestigious Brands Customers.........................................................69
5.6 Volume of Export..................................................................................................................75
5.7Measures of Company Export Performance...................................................................76
5.8Conclusion..........................................................................................................................77
PART –II FINANCE DEPARTMENT OVERVIEW...................................................................78
Message From director Finance...............................................................................................78
CHAPTER 1.............................................................................................................................79
CHAPTER 2.............................................................................................................................88
Part III Theoretical and practical concepts..................................................................................93
PART 1-CRITAICAL ANANLYSIS.......................................................................................93
CAHPTER 1 FINANCIAL STATMENT............................................................................93
2.1.1. Vertical and horizontal analysis of consolidated income statement............................94
2. Vertical and horizontal analysis of consolidated Balance sheet Liabilities side.........95
Common-size Analysis (vertical and horizontal)....................................................................95
2. Vertical and horizontal analysis of Balance sheet............................................................97
Common size analysis (vertical and horizontal) Assets Side..............................................97
Interloop Limited.........................................................................................................................97
CHAPTER 3.............................................................................................................................98
Analysis of Accounting Ratio...............................................................98
5.1 Inventory/stock turnover ratio:.......................................................118
PART 2 ANALYSIS OF MANAGEMENT PATTERNS..........................................................125
SWOT Analysis.................................................................................................................125
Part IV summing up....................................................................................................................142
FINDINGS & RECOMMENDATIONS................................................................................142
CONCLUSION..........................................................................................................................148
Acknowledgement
All praises are for Allah almighty that has bestowed upon human being the crown of
creation and has endowed him with knowledge and wisdom. After Allah, is the last
prophet Mohammed (SAW) who brought for us revelation and unlimited knowledge and
civilized the barbarian human being.
Although this report base only my name but numerous people were very important to the
development of this report without the support of them I could never successfully
completed the project as well as the report.
First of all I would like to say thanks to my parents who brought me up and made me able
to face challenges of this dynamic environment.
Their love and guidance is with me like a torch throughout my life.
No doubt, I am nothing without my teachers. These were the personalities who polished
all my abilities such as Sir Naeem Bukahri, Sir M.Muzamil, Sir Abid mahmood,
I am highly thankful to the staff member of Interloop Limited. Who really cooperated
with me and provide me their complete guidance.
This acknowledgement will remain incomplete without the name of my great teacher Sir
Rana Adnan who has a vital role in my project report.
I am heartily thankful to the following persons whose cooperation enables me to compile
this comprehensive report.
 Mrs. Javeria Ali (Assistant Manager QA. Lab)

 Mr. Qamer Shahzad (Sr. Manager MIS)
 Mr. Muhamad Fiysal ( Manager HR)
 Mr. Ghulam Qasim Saheen(Sr. Manager EHS)
 Mr. zahid Hussain ( Manager Processing)
Finally I am thankful to CEO, Directors, General Managers, and Specially Director
Finance Mr. Muhammad Masood who give me chance to enhance my understanding
about the system of Interloop Limited which would ultimately help me for my future
career
Thank you all!
Preface
The pre-requisite of internship program is to make the students business to be aware of
the actual knowledge and practice of professional organizations and also, acquaint
them with the real management process.
With an intention of grooming the best executives of the future, the Institute of
Govt College University Faisalabad has organized a comprehensive internship program.
Students are placed in leading organizations of business arena to gain firsthand
knowledge and insight into their management and working.
So, when I am going to choice the sector of business, I selected the hosiery a
subdivision of textile business a growing and competing sector with the other business
of the world.
Getting a chance of working in Interloop limited, it‟s proved to be very beneficial for me.
I think that I gained comprehensive insight into the working of a textile firm. But nothing
could have been possible without the co-operation and guidance of the executives of
Interloop limited.
After the completion of internship program, internship report has been prepared just in
accordance with the practical exposure. It has been my endeavor to stipulate my
experience in a way that the reader may clearly understand the core concepts.
EXECUTIVE SUMMARY
Being the student of finance I am to be working in the organization how is in
growing stage as Interloop limited making and managing a competitive
environment in the international businesses.
So my working with interloop Limited is an approach how a factory while in this
situation compete its competitors, by studding the financial position of
interloop limited it seeming to me, the total business is managing by the
educators.
The interloop Limited is a vertical integration and growing unit of sock
manufacturing ,as the 5s techniques and total quality improvements made the
company a setup start with the customers and end with customers ,the
environment of the company is good ,physically ,behavioral and democratically.
management is fully motivated and focusing on their vision, the vision statements
is in its prescribed form easily understood by all the level of management .the
level of management is very simple and motivated .
The Interloop Limited is being a manufacturing company is a good and best in its
finance making, gerating and managing.
I try my best to explain the interloop Limited main activities and functions,
structure and a customer focusing company, this is not only effort but company is
truly customer orientated company.
Corporate social responsible and employees care is the main key characteristics
of the company which is thoroughly explain.
Consistent with company‟s goal of being the most respected manufacturing
company, and its corporate philosophy which emphasizes shared responsibility
to the communities where we live and work, Interloop Limited strives to join its
partners in addressing community challenges through honest, constructive and
meaningful dialogue
In PakistanInterloop Limited has been, and continues to be energetic in its support for
projects and initiatives that seek to develop the community. Be it through its
philanthropic arm „the interloop Limited Foundation,‟ or through timely transfer of
expertise particularly in areas related to the advancement of the international textile
sector and employee volunteerism, interloop Limited remains committed to making a
difference.
From 2001 to 2010, interloop Limited developing industry-leading initiatives and
delivered best-in-class programs, products, and services to our partners and the
communities they serve. In 2008 the president of Pakistan gave the best exporter trophy
award.
Company is targeting the USA and UK markets and they are producing the variety of
socks. The merchandising department plays a vital role in the company. They work just
like a bridge between the buyer and seller.
They have an excellent HR department which improves the intellectual, emotional and
social capital of its employees. They are fulfilling the corporate social responsibility by
giving the aids to the corporate social responsibility by giving the aids to the IDP‟s of
floods and earth quake.
Their imports and exports departments control all the shipment activities. Processing
and finishing departments support them to convert the raw material into finishing
products.
Just like the other companies Interloop Limited is also facing the political, economical,
social and technological problems. Interloop Limited has many opportunities to be more
successful in the future but some threats may also affect them like political instability
and electricity load shedding in Pakistan.
THE HOSIERY MIRACLE OF Project Report
PAKISTAN
PART-I INTRODUCTION
CHAPTER 1
1.1 OBJECTIVES OF STUDYING THE ORGANIZATION
My actual objectives of studding the INTERLOOP LIMITED fulfill the following
requirements that are in fact the real objectives of mine;
 To fulfill the requirement of Department management science &IT for the
degree of MBA (finance).
 To improve my knowledge about Finance Department and other
different departments of this organization
 To be a better Manager of financial activities of a huge and manufacturing
concerns.
 To build up knowledge and confidence in future regarding my practical work.
 To highlight strength and identify weaknesses residing internally with the
Finance Department of this organization.
 To make better understanding of theoretical financial concepts
being implemented in real world setting and in dynamic
environment
 To have more insight into the type of situations actually being
encountered in a daily organizational work and practical activates.
SUBMITTED MOHI-UD DIN ISLAMIC UNIVERSITY

TO
Page 12
Introduction
1.2 COPMANY PROFLIE
1. Company Name:
Interloop Limited
2. Address
City Office:
Al Sadiq Plaza, P-157
Railway Road, Faisalabad.
Factory (Socks Division I):

01 Km, Jaranwala Road, Khurrianwala, Faisalabad,
Mills (Spinning Division):

7 Km, Jaranwala Road, Khurrianwala, Faisalabad.
Factory (Socks Division II):

7 Km, Jaranwala Road, Khurrianwala, Faisalabad.
3. Contacts
Telephone No. + 92-41-4360400
Fax NO + 92-41-4360100
Email: sales@interloop.com.pk
Internet: http://www.interloop-pk.com
4. Contact Persons:
For Yarn Mr. Tariq Rashid

trashid@interloop.com.pk
For Hosiery Mr. Muhammad Shahzad

mshahzad@interloop.com.pk
CEO Message
It gives me immense pleasure to share Interloop’s
continuous triumph with its stake holders. Our 3
year business plan prepared in December 2006 was
successfully completed in year 2008. We
successfully diversified in to Men’s and Ladies dress
and casual socks, Infant socks and enhanced our
capacity in fine gauge Athletic socks. We also
enhanced the capacity of our state-of-the-art
Spinning Mill. We were able to gain the confidence
of Nike during 2008. We completed a 9 megawatt
Energy Division with co- generation and a second
Hosiery Division. This facility
included 880 knitting machines, a world-class dye house, and 5 ton
capacity yarn dyeing plant.
By the grace of God, in the area of specialization, Interloop has
completed 17 years of its existence and has established it self as one
of the leading players on global level. We have now formulated a 3 year
plan which will entail investment of US$40 Million by the end of 2011 to
enhance our manufacturing capabilities globally. We plan to achieve a
total global hosiery production of 38 million dozens by the end of year
2011 with an estimated FOB turn over of 170$ millions.
Interloop is fully aware of its role in nation building and social
responsibility. We have been continuously sponsoring various welfare
activities including the SOS children’s village in Faisalabad.
Interloop has now signed a MOU with The Citizen Foundation, which
runs 530 schools, for establishment of 8 schools in Faisalabad district
.Interloop had also set up a Tent Village at Chattar Kallas in Azad Kashmir
for the earthquake victims in cooperation with UNHCR, UNICEF, OXFAM,
WFP, WHO and Azad Kashmir Government.
Musadaq Zulqarnain
C.E.O
1.4 BOARD OF DIRECTORS
Musadaq
Zulquarnain
President & CEO
Navid Fazal
Jahanjab
COO
Director Technical
Tariq Rasheed
Director Finance Director Sourcing
Muhammad Masood
Saeed Jabal
Director Business
Administration
VISION STEATMENT
"We will strive to be one of the leading players in the global hosiery
business by providing best value to our stakeholders through improving
our processes to match best international practices. We will diversify in
to other fields."
At Interloop, we strive to look ahead and be ready for what the future
brings. We have consistently endeavored to understand the world
around
us, and the challenges it brings, as well as recognizing and

harnessing our own strengths, in order to equip ourselves for the
future. Our Vision 2015 describes that future state so that we can
align our efforts towards its achievement.
MISSION STATEMENT
 To achieve the higher satisfaction level of the external customer and

of the internal customer as well, which helps Interloop to maintain
good customer-supplier chain with in the company? Customer
satisfaction defined through quality and quality is defined by the
customer as products and services that through out their life meet
needs and exceptions at cast that represents value.
 To be a business house of customers of first class.
 To be a changed leader.
 To produce innovative, relevant and cost effective product by

setting and maintaining high standards.
 To earn profits by achieving the optimal level of production by

using the state of art technologies.
 To provide ideal working environment to employees and to take care

in their career planning and reward them according to their skills and
responsibilities.
 To meet social and cultural obligations towards the society being
a patriotic sand conscientious corporate citizen
Our core Values
our values are built on the strong moral foundation We are set tattoo achieve our vision by allowing our values to take root
within the soul of our operations processes and trying to live by them.
Our values are the core principles that guide each and every one of us in the way we conduct our business as well as the
manner in which we interact both with each other and the world at large. They represent what we stand for as a company.
I-CARE
Integrity CARE
We are ethical in our Functions & dealings We nurture a caring environment internally
We are of benefits to community we operate in We acquire, nature and reward talent
We make efforts to preserve environment We ensure self respect of the work force
We encourage teamwork
ACCOUNTABLITY RESPECT
WE accept responsibility We have respect for environment
We are accountable in our matters We have respect for the people
EXECELLENCE
We aggressively face competition
We encourage deployment of latest technology
We arrive at decisions through collective wisdom
We meet or exceed customer expectations in quality of product & services

these values are the driving force guiding our business processes. Through our
values we are able to define “Who are we?” and also foresee “Where do we want to
go?”
CHAPTER 2 OVERVIEW OF THE ORGANIZATION
2.1 History of Interloop Limited
Past
As in most of the coo speeches, it is sought out that Interloop
have too much interesting and a gorgeous success in the
business world, the company stat its work in 1992 with few
machine, as 10 knitting machine without any other facilities,
where two brothers Mr. Naveed Fazal and Masdizq zluqranan,
work by themselves with their few but label team a present
which is the true result of hard work and result of planning.
” I have personally visit that site in Khurianwala, from where the interloop started it’
production’
Present
It now has 2300 machines and a workforce of more than 10000. Interloop Limited
has transformed itself into one of the WORLD'S largest Socks Manufacturer and
Exporter. It is a Limited Company located in Pakistan's Industrial hub Faisalabad;
also known as the "Manchester of Pakistan". Interloop is an integral part of this
business community, continuously striving to revolutionize business practices in this
region.
Interloop is a complete vertical unit with all processes ranging from yarn-spinning
to packaging and it employs a Centralized Computerized System which
Future
In pursuance of our goals to achieve and maintain good quality, Interloop has now
set up a High-Tech Spinning Unit that will ensure finest quality yarn made from the
best available natural cotton. This project will enhance the value of money for our
customers by offering even more competitive rates to our clients.
Hard work and utmost commitment from its employees and management, strict
Quality Control Measures, timely Shipments and reliable Service Standards have
been paramount towards Interloop's phenomenal growth. It is one of the very few
firms in Pakistan with an impressive Social Responsibility Portfolio, realizing that a
commitment to sustainability in all areas of commercial activity endorse the long
term interests of a business.
This is the result of true leadership as in coo,s Blog in may- 07-2011

“Dear colleagues we started a journey over two yeas ago with the lunch of TPM and
5s activates, in the beginning it was painfully slow. After the lunch of leans
initiatives this gathered peace and I am happy to report the initiatives are paying
back.
PGO played a key role during this journey, though his departure is a loss I am fully
confident that you will the same pace and we will INSALLAH be one of the best
hosiery companies by 2015.
Keep your focus and do not loose momentum, this absolutely critical.”
2.2 Nature of the Organization

Interloop LTD falls in textile processing. It is a company form of business
established under companies ordinance 1984 and regulate under the industrial Law
of Pakistan Interloop LTD is socks manufacturing Company producing the world
Best Exports Brands though there vertical, integration unit have complete set up
form spin to knit ad knit to final.
2.3 STATUS OF BUSINESS

The Group consists of:
Locally
1. Hosiery Divisions with the
name: Hosiery Division I
Hosiery Division II
Hosiery Division III (acquisition made from Kohinoor Hosiery)
2. Yarn Dyeing Division
3. Interloop Spinning Limited
4. interloop Diary Limited (New Added)
Internationally
1. Interloop Bangla Limited
2. Interloop Limited North America
2.4 Organizational structure
1. functional structure
Chief Operating
Officer
COO
Director Business improvement

Director Technical Director Finance Director Sourcing
CEO
Manager Supplies Manager Admin Manger ENGEERI Manager QA
Manger PPC Manger Finance Manager EHS
Manager Operation Manager I&E Manager OD

2. Divisional structure
Chief Operating Officer
General Manager Hosiery General Manger Spinning General Dairy General Manager Yarn Dyeing
Comments on Organizational structure of interloop Limited :
Interloop organizational structure is simple and very much more chances to

enhance and to delegations opportunities are in the structure, the company is
using both the types flat as well as Tall organization structure through which job
description, job and the functions of the management can flow easily, planning is
possible ,leading can be done ,motivation can be achieved ,and control can be
functionalized .
Over all organizational structure is continues improve be the company, so it is in its
good form.
2.5 Management level TOP
Upper level Level
1. Board of Directors
2. CEO
3. COO
MIDDLE LEVEL MANAGEMENT

Middle level
Managers
Officers
Lower level
FIRST LEVEL MANAGEMENT
Supervisor/ Technicians/Auditors
Operators
Helper
2.6 Business volume

Production Capacity
Socks Division Spinning Division Yarn Dyeing
3000 computerized 20,400 spindles 6 dyeing machines

knitting machines
100,000 dozens/day 61,700 pounds/day 11,000 pounds/day

(36 million dozens/year) (28,000 KGs/day) (5,000 KGs/day)
Year 2006 2007 2008 2009 2010 2011
Capacity
Knitting per month 2.8 Million dozens
Dyeing per 2.8 Million dozens
month
Packing per month 3 Million dozens
Minimum order qty 2,500 dozens( variable as per terms)
45-60 days after approvals
Minimum Lead time
Short lead time possible for repeats
Volume/Dozens 12,245,561 15,375,158 20,000,000 21,000,000 25,000,000 30000000
Growth 13% 26% 30% 5% 20% 80%
GROWTH HIstory
180
160
140
120
100
80
60 GROWTH HIstory
40
20
0
2006200720082009201020112012
Dozens
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
Dozens
20052006200720082009201020112012
2.7 Number of Employees
Permanent Employees 7266

Piece Rated Workers 3560
Total: 10082
2.8 CERTIFICATIONS:
Interloop has a very clear and stringent policy in order to comply with world’s most
demanding, quality and social standards.
ISO 9001:2008 EPA Certificates ISO 14001:2004
OKEOTEX.100 OHSAS 18001 Registration certificate HDII
SA 8000(2008) HDII EFP Certification WRAP

GSV PNAC-CBA-001
2.9 Policies of interloop Limited
1. Quality policy
Policy o f QA lab (ISO 17025)
“ ILQA LAB is committed to provide the testing that meets both the needs of the
customer and requirement of ISO/IEC 17025 .We do this by ensuring that all
p[ersonal apply and continullay look to improve the effectiveness of plocies and
procedures in our management system. Testing results are reported with in stated
limts of uncertainty and detection limites as decribed in l;ab scope “
Dated 20th January, 2012
2. Company Quality policy
“MAINTENANCE AND IMPROVEMENT IN THE QUALITY OF OUR PRODUCTS (SOCKS)

AND OUR QUALITY MANAGEMENT SYSTEM IS THE CORNER STONE OF OUR
QUALITY POLICY”
Quality Objective
 Maintain the quality of our product as required by the customer
 Invest in equipment and Human resources
 Safeguard the interest of our stock holder like customer, employees
 Review the quality management system for continuous improvement.
3. Social Policy
Social Accountability Policy
“We at interloop Limited are committed to provide a better working environment to

our employees by establishing and maintaining SA 8000 standard requirements
 Labor law of Pakistan

 Buyers standards of engagement
 Sa 8000 requirements
 ILO conventions
The company is confident that through its constant monitoring and efforts, it
motives its employees, produce better quality products and create culture of
continues improvements “
Dated 10th May, 2008
Environment policy
Interloop is committed to compel with all legal requirement and identifying the
environmental impacts of all aspects of its business to set targets for these
impacts reduction
We focus on industry best practices to drive down energy consumptions reduce
waste and manage its disposal affecting to minimize detrimental effects.
Dated 10th May, 2008
4. Policy of Environment Health and Safety
1. Purpose
This policy establishes guidelines for the EHS issue Management and
company’s vision towards maintaining world class standard sin this
regards
2. scope
This policy covers Hosiery Divisions of company
3. Policy
 Interloop is committed to operate in a manner that will reduced the EHS
risks to all its Stake holders it will continually review its processes and
make improvements that will reduce the EHS risks it will try to protect and
conserve the environmental and will devote adequate resources that
are required to achieve this goals
 Interloop will invest in equipments that will conserve energy make work
pale safe and reduce risk to environment a interloop will arrange to develop
and implement
EHS standard that concern with the national /international standards
 It will arrange to import proper training to its workforce for implementing

these standards to maintain the EHS standards to maintain the EHS
standard will be the responsibility of line manager in impleneting the EHS
standards.
 Interloop will endeavor to seek relevant EHS certificate like ISO 140000
 Interloop will comply with all relevant EHS standard and required by law
 A continues us review of EHS issues will be ensured through internal audits

and efforts will be made to improve the system
Dated 15th April, 2008
CHAPTER 3
CORPORATE OBJECTIVES AND COMPANY IN GENRAL

3.1 Corporate Social Responsibilities
interloop has evolved at a pace faster than what anyone might have imagined a
decade ago and has shown continuous commitment to behave ethically; and
contribute to economic development while improving the quality of life of our
workforce, their families and the local community at large.
At Interloop we believe that profitability and growth, combined with development of
our employees and communities and protection of the environment endorse the
long-term interests of a business.
THE CITIZENS FOUNDATION SCHOOLS (INTERLOOP
CAMPUSES):
Interloop Limited has signed a Memorandum of
Understanding (MoU) with The Citizens Foundation (TCF) to
construct four Secondary Schools (two for Boys and two for
Girls) and six to eight Primary Schools in five years, and
even more in future as well out of own funds including the
cost of building, furniture, utilities and vehicles. Each built-
a-school project will also be taken up with provision of schools support for three
years.
Interloop believes in playing an active role in social development by providing

health, education and sports facilities to the less privileged class of the Country.
The aim of construction of these schools is to promote quality and formal
education for less privileged children in an environment that encourages
intellectual, moral and spiritual growth. The preference for construction of schools
will be given to the rural areas and urban slums of District Faisalabad,
characterized by extreme poverty where people neither have the means nor access
to quality education.
The Citizens Foundation (TCF) is engaged in various public welfare projects

especially in the field of provision of quality education, establishment and
management of non-profit educational institutions. TCF is a professionally
managed, a non-profit organization and one of the Pakistan’s leading organization
in the field of formal education. TCF has established over 660 school units
nationwide with an enrolment of 92,000 students including 46 school units in
Faisalabad, Jhang and Chinoit where 10,000 students are studying.
Interloop Limited will Insha Allah spend an amount of 170 Million Rupees for this
purpose in five years. This has also been made part of Interloop Corporate
Objectives.
Interloop Limited has constructed four Secondary Schools in March 2010, two TCF
Secondary Schools (Interloop – Begum Sarwari Sadiq Campus) in Village 242 / RB
Dasuha and two TCF Secondary Schools (Interloop – Dobotex Campus) in Village
229 / RB Makuana i.e. separate Campuses for Boys and Girls. Classes have been
started in all these schools w.e.f 15th April 2010.
Eight TCF Primary Schools (Interloop Campuses) will be constructed in next four
years (two schools every year). Land for four schools has been purchased.
Construction of two Primary Schools will be completed by end of March 2011 and
classes will start in April 2011. Total cost of Primary Schools will be approximately
113 Million Rupees including 3.97 Million Rupees as three years school support
expenses per school.
ASSISSTANCE FOR IDP’s OF SWAT / GOJRA:

The mass exodus of population from and surrounding areas of Swat was a human tragedy of great
dimension. Every citizen played its part contributing to well being of IDPs (Internally Displaced
Persons). Interloop Limited was second to none in contributing its Corporate Responsibility. Interloop
immediately dispatched food
items and distributed amongst IDPs of District Nowshera, as the people of these areas deserved full
support and needed to be treated with sympathy, love and kindness. Moreover, arrangements for
provisions of meal for IDPs of Gojra were made through Government Administration Gojra during and
after the disturbance period. Optimism and hope were the galvanizing spirit to accomplish the
Corporate Responsibility by Interloop Limited.
Earthquake Tent Village
Interloop is proud to be a part of the biggest ever humanitarian aids for the largest natural disaster that
ever struck Pakistan in October 2005, killing over 80,000 people and rendering millions homeless.
Interloop was quick to show solidarity to its countrymen struck by this great catastrophe and
immediately chalked out a plan to set up a “Tent Village” in Muzzaffarabad to ease the suffering of the
victims.
Chattar Kalas Kohala, Muzzaffarabad
was selected as the appropriate site
because of its proximity to water
supply, easy road access and
availability of electricity. Interloop has
been fortunate in this noble cause, as
many local and international
organisations stepped forward to help Interloop establish this facility which was designed to
accommodate 1500 people.
Caritis, a French Organization collaborated with Interloop to install a state-of-the-art clean water
supply system. This facility also included pore flush toilets, showers and laundry slabs which were
constructed with the help of OXFAM. Food was provided with the help of WFP. UNHCR donated
bedding and health related arrangements were made in collaboration with WHO and UNICEF. Interloop
was also running a school with the help of UNICEF. Keeping in view its overall plan and facilities, it
was declared a "Model Tent Village" by UNHCR.
SOS Children's Village:
Our Company's Social Investment Programme aims to support activities in the areas of education,
health, community development and environment, dedicated to the welfare of underprivileged members
of our society. As part of this programme, Interloop has been supporting the SOS Children's Village in
Faisalabad for the past 7 years by building a cottage at the SOS Village
that provides complete housing facility to approximately 10 children.
In our efforts for continuous development, we encouraged our European
Client, Dobotex to build a major Community Centre at the SOS Village
and assisted them in completion of this project. The Community Centre
caters to the needs of nearly 150 orphaned and/or abandoned children and is designed to
accommodate events such as weddings, stage plays and annual functions. Currently Dobotex in
collaboration with our Company is constructing a Youth Home, which
will house 25 children.

Sponsorship of Regional Cricket:
Interloop identified that sports activities are imperative for an all-
round development of many young individuals. Cricket is a passion,
common to everyone in Pakistan. Interloop joined hands with
Pakistan Cricket Board in 2005 by becoming the Official Sponsor of
Faisalabad Wolves, Faisalabad Regional Cricket Team. It was a historic
deal as we became the first and the only firm to sponsor domestic cricket.
The main purpose of this deal was to direct the long built-up energy of
this young generation into fruitful operations by providing them a platform
to excel further. We believe that Interloop identified and captured an
opportunity which can sincerely represent the concept behind social
responsibility.
The sponsorship continued for two years. Interloop Limited sponsored
Twenty/20 Cricket Match organized at Iqbal Cricket Stadium,
Faisalabad by Regional Cricket Association / Pakistan Cricket Board
in
PAKISTAN
April 2010 to promote cricket in Pakistan.

We are proud to be a corporate entity working towards sustainable development by linking large foreign
based companies and local community projects.
Waste Water Treatment Plant:

Our Environmental Protection System ensures that all dyes and
chemicals used in the Production Process must not contain any harmful
substance. All such elements are safely stored and disposed off after
use. The Waste Water Treatment Plant treats all toxic chemicals and
dyes before disposal.
Special Plants Production:

Interloop has embarked upon a Research Project with NIBGE (Nuclear
Institute of Bio-Technology and Genetic Engineering) helping to produce
special plants to be irrigated with treated water, which will absorb colours
from the treatment canals. After filtration by these plants, the water in
these canals can be used for normal irrigation.
Fair Price Shop:
This project aims to reduce the cost of living for Company's employees by
providing certain articles of daily use at very cheap rates. All workers can
purchase necessities of life on a quota base determined by the Managing
Committee. The shop includes items like Cooking Oil, Sugar, Tea,
Detergent, Wheat Flour and Company Products etc.
Employee Benefits:
The Company provides healthy and hygienic food to all employees at nominal
price. Free uniforms, Health Insurance and on-site Medical Care are provided to
all employees.
Day Care Center:
Interloop has had a solemn pledge to give a peace of mind to his every
employee at work. In this regard “Child Care Centre” has been setup in the Mills
SUBMITTED TO MOHI-UD DIN ISLAMIC UNIVERSITY
Introduction Page 34
PAKISTAN
premises to facilitate female employees. During the working hours, their children are being pampered
by the motherly, baby-sitters. Having firm conviction of Social Institution, Interloop always
encouraged the people to earn their bread & butter, beyond any social constraints.
Transport Facility – A Leading Edge:

Interloop Limited provides pick and drop facility to all
its employees, round the year during all weather and
in all shifts.
Transport fleet consists of 55 all types of vehicles.

Transport ply and covers the entire routes and area
of Faisalabad and Jarranawala cities and all villages in route having turn round radius of 65KM. Total
monthly outlay of the Company on transport is Rupees 7.5 Million. This is the leading edge, distinction
and satisfaction – the Interloop enjoys in accomplishment of Corporate Social Responsibilities over
others.
Support to rescue 1122
Being a social corporate responsible interloop Limited has always develop their community by all
means so for this purpose rescue 1122.interloop paid RS/-120000 for their vehicles (
ambulances etc.)Maintenance
Sponsorship of Regional Cricket
 Interloop is committed to promote healthy sports activities
 to keep the youth of Pakistan on right track one of the steps
 to the cause is financial support to Cricket at regional
• Other Notable CSR Activities – 2009 -2010

– Assistance provided to IDPs of Swat & Gojra Rs.550,000.00
– Cornea Transplantation 10 Patients

– Ophthalmic Eye Treatment 309 Patients
– Tuberculosis Treatment 903 Patients
(Interloop is committed to own its social responsibility of medical care to poor
Patients in future as well)
TO
Page 35
Introduction
3.2 Environment of company
The environment of the company is very healthy and worker friedlay, following are the best practice to
reduce the environment impacts on the human health;
For Effluent treatment
Wastewater Treatment
Type Biological-Aerobic
Capacity 180m3/h
Operation Round the Clock
Water Sprinkler Systems

The objective of the sprinkler system is to re-use the ablution water for Irrigation to conserve water
by reducing the pressure on natural water resources.
Special Plants' Production:
an effort to improve
Environmental Ecology:
NIBGE (Nuclear
Institute of Bio-
Technology and
Genetic
Engineering)
• Australian Kiker
• Eucalyptus
• Epple Epple
2.3 Customer’s Profile

Interloop Producing World's Most Prestigious Brands
Interloop has been exporting 100% of its goods to all parts of the World for the last 16 years and
enjoying highest appreciation from its clients over the product and service. Client’s satisfaction is one of
the pivotal elements of our continuous success. Interloop aims and its team is determined to provide
even better consistent quality services to the best of its abilities.
Customers Portfolio
USA
• GOLD TOE
• K-MART
• RENFRO CORPORATION,
• CANDOR HOSIERY
• CHARLESTON HOSIERY
• CRESCENT HOSIERY
PAKISTAN
• INTERNATIONAL LEQ WEAR GROUP(ILG)

• HOPE HOSIERY
• PHILIPS HOSIERY
• ABC HOSIERY
• NEW CENTURY HOSIERY
• ISACO
• HCI DIRECT
EUROPE
• PUMA, EEC (DOBOTEX)
• WOOLWORTHS, UK ( Thru Zivtex)

• BENJAMIN SA FRANCE
• VIVARTE, FRANCE
• ALBER ITALY
• PRO ACT FRANCE
• FILA, EEC
• DUNNES STORE IRELAND( Thru ZIVTEX )
• DIA SPAIN
• COTEM KID-SPAIN
• FRIENDS TEXTILE, ESTONIA
• FIPOTEX-DENMARK
• OBERNDORFER BEINMODEN- AUSTRIA
• SERGIOTACCHINI
CANADA
• LAMOUR HOSIERY
• MCGREGOR INC
TO
Page 38
Introduction
AUSTRALIA/NEWZELAND
• WOOLWORTHS, AUSTRALIA
• SLAZENGER, RIO (HOLEPROOF AUSTRALIA
2.4 The Achievements of Company
As Interloop has continued to grow and establish itself on the national and international stage, we have
been graced with recognition for our superior performance as well as our industry-leading practices.
Below are some of the recent accolades with which Interloop Ltd. has been blessed.
7th Best Export Performance Trophy for

Interloop
Every year, the Federation of Pakistan Chambers of Commerce

and Industry (FPCCI) hold a Best Export Performance Awards
ceremony to recognize the biggest exporters in the country across
several industries.
By the grace of God Almighty, this was Interloop's 7th time winning
a Best Export Performance Trophy. The ceremony was held in Karachi on the 22nd of December,
2008.
It was a moment of pride for all of us when the Prime Minister of Pakistan, Mr. Yousaf Raza Gilani,
awarded the trophy to our CEO, Mr. Musadaq Zulqarnain. This achievement is a reflection of the vision
and commitment of our top management as well as the dedication of Interloop's entire workforce.
Many congratulations and thanks must go out to all the Interloop team; our management, executives
and labor force. Their competence and commitment in every aspect of the business, from the efficient
use of resources to the meticulous customer service we strive for, has endowed Interloop with such
successes. We humbly thank God Almighty and pray for continued success in the future
OHSAS 18001:2010 Certification

With the blessing of God the Almighty, Interloop Limited
has been successfully certified for Internationally
recognized OHSAS 18001:2007 (Occupational Health
and Safety Assessment Series) by LRQA (Lloyd's
Register Quality Assurance Limited). EHS Department
was continuously endeavoring for implementation of
OH&S
standards from the start of this year. Not only they succeeded in implementation of these standards but
also got it accredited from UKAS (United Kingdom Accreditation Service). It's a true picture of team
work of all Departments of Interloop Limited.
Occupational Health and Safety is the core value associated with all
the operations being carried out at Interloop Limited. The Company
aims and committed to adhere with most stringent OH&S Laws and
Regulations. This certification has enabled Interloop Limited to
identify the workplace hazards and apply appropriate control
measures to prevent our employees, contractors and visitors from
injuries and ill health.
TESCO “Every Little Helps “Award
Interloop Limited is immensely proud to be able to have Tesco, the world's 3rd largest food and
general retailer, in its client portfolio. When Interloop CEO, Mr. Musadaq Zulqarnain, attended the
PAKISTAN
Tesco international suppliers' conference in Hong Kong on the 3rd of April, 2008, there was a
wonderful surprise in store.
Interloop Ltd. was declared the recipient of one of Tesco's four awards for its non-food suppliers, given
out at the end of the conference.
The four categories were innovation, CSR, Improvement and Every Little Helps (the TESCO theme).
Interloop was awarded the "Every Little Helps" accolade. Tesco cited the following reasons for its
choice of Interloop as the recipient:
1. 100 % on-time delivery

2. 100 % quality audits passed
3. 70% growth in Interloop's business with Tesco over
the previous year
4. An investment of US $ 25 million by Interloop in
adding capacity in yarn manufacturing, yarn dyeing and
Laboratories.
Recognition of Interloop's OHSE Best Practices
Employer's Federation of Pakistan (EFP) in collaboration with

International Labour Organization (ILO) is organizing Occupational Safety
Health and Environment (OHSE) “Best Practices Award” in seven
difference categories for the last five years.
This year also EFP asked to submit the nomination forms with all the supporting documents and
pictures till 25th March 2010. After that a Committee checked all these forms and announced
the winners.
We are pleased to mention that Interloop Limited won OSHE Best Award 2010 in Textile Apparel
and Leather Category this year also. This award is a recognition of our sincere efforts towards
implementing and sustaining EHS Standards in true spirit

TO
Page 43
Introduction
Other achievements
 On time shipment
 Quality standards
 Increasing capacity of $ 25 Million
 70% business growth
Every Little Helps By TESCO world’s 3rd largest retailer
Best Export Performance Trophies

INTERLOOP has won FPPCI (Federation OF Pakistan Chamber Of Commerce and Industry)
Export trophies of the Year 2001-2002 and Year 2004-2008. It WAS the fist time that a
knitting unit has won this trophy, that too a socks knitting company.
Sr. # Financial Year FPCCI Trophy # Category Receiving Date
1 2001 - 2002 26th Special Merit Trophy 29-Aug-2003
Special Merit Trophy, Best
2 2002 - 2003 27th 29-Aug-2003
Export Performance Trophy
Best Export Performance
3 2003 - 2004 27th 07-Dec-2004
Trophy
4 2004 - 2005 29th 04-May-2006
Trophy
5 2005 - 2006 30th 27-Dec-2006
Trophy
6 2006 - 2007 31st 01-Dec-2007
Trophy
7 2007 - 2008 32nd 22-Dec-2008
Trophy
2.5 company’s Products
 Output after a specified process on a given input (raw materials) is called a PRODUCT.
 Choice of product is actually the choice of profit.

 The product for which, raw materials, labors and other accessories are easily available,
yields great margins and bulk volumes.
 If the product is unique and exclusive, not only profits are high but also the competitors are less
and business enjoys itself.
 The INTERLOOP (PVT) LIMITED is manufacturing the premium quality of cotton sports socks.
Parts of Socks:
Major parts of the socks are given below
1. Welt
2. Rib
3. Heel
4. Foot
5. Toe
1. Welt:
It is the opening part of the Socks. Elastic is necessary in each part of welt for its grip. Welt
attached to rib with Nylon, which is called Tie down. Double welt is used in sports socks and
single welt is used in dress socks.
2. Rib:
After welt the portion of socks is known as rib and generally motif are placed here. To tie these
two parts together, a very small portion is also exists which is known as tie down.
3. Heel:
The portion above the heel and below the Rib is called high heel. In some type of socks high heel
portion is included in rib.
4. Foot:
This part of sock is between toe and heel. It is the main part of the sock and it function is to cover
the foot.
5. Toe:
It is the closing part of the sock and it covers the toe of the foot.
These parts of sock are shown in the following Picture.
Types of Socks:
There are almost six types of socks are made.
1. Mid Calf/Crew Socks
2. Ankle/Quarter Socks:
3. Anklet Socks:
4. No Show/No Socks
5. Tube Socks
6. Knee High/Work Socks
1. Mid Calf/Crew Socks:
This type of socks is normally used in sports. Its rib is bigger and elastic is used for a firm grip.
2. Ankle/Quarter Socks:
In these kinds of socks, leg portion is not defined/ knitted. Heal type for these socks can be real or
pouch. This kind of sock is also used in sports.

3. Anklet Socks:
These kinds of socks have also no rib and its welt comes on ankle of foot. It is also used in sports.
4. No Show/No Socks:
In these kind of socks, no rib no welt. This kind of sock is also used in sports.
5. Tube Socks:
These kinds of socks are without heel and toe. It is knitted like a tube and is shaped after worn.
6. Knee High/Work Socks:
In this kind of socks, welt is up to the knee and therefore it is also called work socks.
Formation of Socks:
 Sandwich Terry: In the formation of this type, three yarns are used namely main,
plating and main. It can be full or half terry. In this type, platting yarn is used between the
two main yarns with separate sinkers.
 Rough Terry: In the formation of this type, two yarns are used (with same
sinker) namely main and plating. It can be full or half terry.
 Plain/Half Terry: In the formation of this type, two yarns are used namely main and
plating. A different proportion of sinkers makes the fabric half or no terry.
 Arch Sports: In the formation of this type, there are few coats of elastic to make grip on
foot as well.
Chapter 4
Departments/ functional units of Interloop Limited
4.1 Administration Department
Introduction
The role of administration department is very important in any organization.

The services being provided by the administrator department elated with the every employees of
company.
The administrator team is regularly putting effort to improve administration relates services as much as
possible according to the company policies and as per the satisfaction o f all employees.
Functions of admin department

1. Transport facilities
2. mess &meal
3. security services
4. housekeeping
5. Protocol Duties
6. Horticulture
7. Liaison with government depts.
8. Reception
9. Telephone Exchange
10. Motorcycle/cycle stand& car parking services
11. Mosque affairs &religious services
12. Gymnasium facilities
13. hostel facilities
14. Gate Office /weigh Bridge
15. monitoring of IP cameras
16. Mail Receipt/dispatch
17. Medical service
4.2 HR & Development Department

Introduction
In addition to being the leading Socks Manufacturing Organization in the Country, Interloop is also a
large scale employer. Presently, we have more than 9,500 workforces. These people are supported by
more than 630 Executive Officers, who are providing managerial input and guidance to them.
With such a large base of people, it is imperative to have a world class HR Function which is able to
harness the combined efforts of our people towards achieving excellence in all aspect of our activities.
SUB- DERTMENT OF HR &D

The HR&D is divided into the following sub departments
Time office
The time office is a place where the daily enrollments record is kept by the E-program specially design
for the employees in out time and other detail like leaves and shift rotations etc.
Welfare office
The welfare of the employees is very necessary, so for this purpose the separate office is built for the
social security ,and EOBI and other welfare activates and institutions.
Recruitment office
The new hiring in any organization is the need of today, to keep track the day to day activities of
Inerloop limited so the employee selection and recruiting is done in this office; the office is fully
equipment with the modern techniques of recruitment the staff is very corporative.
HR philosophy and practices
Our HR philosophy is based on the belief that we can increase our overall Human Capital by improving
the following:
 Intellectual Capital: Processes which will improve specialized
knowledge, skills, tacit knowledge, and imagination of our people.
 Emotional Capital: Developing a culture which breeds self confidence,
ambition, and courage. Developing Leadership capabilities and
encouraging team based environment is an essential ingredient.
 Social Capital: Leveraging social contacts for business and personal gains,
strengthening networks of our people with outside world, trustworthiness etc. are
the hallmark of this process.
Objectives
constantly striving to transform Interloop into a more "Caring & Sharing" Company. We
believe that the success of a company comes through its workers and we have recently
launched an initiative, known as "Project CARE" for this purpose. This project is
recognition of our people's performance and dedication towards Interloop Long Service
Awards, supporting children education, integration of families through social activities and
guaranteed jobs for our long serving employees are some of the salient features of this
program.
The focal points of our core values. We aim to acquire, nurture and reward talent. The
reason is simple: our people are the drivers of our vision. Their efforts are responsible for
our operational excellence, product quality and ultimately, customer satisfaction.
4.3 MERCHANDISING DEPARTMENT
The person who follows up the consignment from confirmation to shipment is known as a
merchandiser.
No business in the world would run and makes progress unless it has a good marketing strategy
towards its product, and has a talent to promote the sales. Marketing is supposed to be the most
critical and imperative part of any business..
In the INTERLOOP LIMITED, merchandising department is divided in two sections.
1) Europe Section
2) USA/ Aust Sec
Manager USA
Manager EU
Asst. Manager
Asst. Manager
Sr. Officer Sr. officer
MDZR MDZR MDZR MDZR MDZR MDZR

Merchandising department function as a bridge between the customer and the factory/ company. They
work for maintaining, running customer and search for new customers and orders. They are
1. Internet
2. Old customer
3. Repute
4. Reference
5. Sample presentation
Procedure of New Inquiry Procedure of Old Inquiry
1. New Customer 1. Old Customer
2. CEO 2. Order Inquiry
3. Price and Shipment Details

3. Manager Merchandizing
4. Confirmation
4. Price of Product
5. Order Placement
5. If Acceptable
6. Sampling Approval
7. Order Inquiry
8. Confirmation
9. Order Placement
Basic Function of Merchandiser:
A merchandiser performs the following functions.
1. Arrangement of Printed & Packing Accessories

2. Trim Card Approval
3. Proto Type Approval
4. Carton Size Approval
Follow up for Payment L/C or TT etc
PAKISTAN
4.4 EHS Department
Introduction
EHS department: is committed to ensure that all the

operations are being carried out so that EHS Risks are reduced to
prevent the adverse effect to all stake holders.
EHS Department: is pouting the efforts to protect and conserve the environment by allocating
adequate resources that are required to make these improvements and complies with legislative as well
as other requirements
Functions of EHS
 To ensure a better work environment by protecting.
 To comply with legal as well as customer’s Requirements

 Environment
 Occupational safety
 Occupational Health And welfare of people engaged in employmen
Objectives
 1.C-TPAT certification
 2 OHSAS 08001 certification
 3.Ergonomics Study
 4. UP gradation of EHS steamers in HD-1
 5.Accidental Reduction Strategy
Achievements
Best OHS practices Award 2009 by employees Federation of Pakistan
OHSAS 18001 certifications
C.TPAT certifications

4.5 Engineering Department
Introduction
Engineering Department is father sub divided into following main sections;

1. Electrical
2. Mechanical
3. HAVAC
4. Civil
5. Machine shop
6. Boiler House
Department hierarchy
Main Functions
 Maintained of all production machine, electro-mech. systems and civil structure

 Of all production Areas
 Installation of new systems and machines according to plants

PAKISTAN
 Continues efforts to improve

 The efficiencies of systems and machines
Workflow Activities
Engineering department has divided the technical activities in the followings;
 Planned
 Unplanned
 Planned /preventive Maintained is carried out on the basis of our pre-planned Schedules
computer software called “CMMS” is being used for this
Objective
 To minimize the breakdown time of production, machines
 New installation in minimum possible time
 Continuous efforts make systems &machines energy efficient
4.6 IMPORT & EXPORT Department
Introduction Of department
Handles all logistical arrangements and finance transactions relevant to inflow of production inputs and
outflow of our products
In this rereads we coordinates with customers ,sullpliers, Government Offices and service Proviso such
as shipping lines ,forwards ,transport companies and bancs ,to execute and follow up on myriad
activates such inbound and outbound shipments, documentation and payment
Objectives
 To ensure the timely delivery of all export shipments under cost effective
arrangements and complying the customer’s SOP , Government
Rules / Regulations & benefits with minimum transit times and maintaining their
receivables at lowest level
TO
Page 57
Introduction
To ensure the delicacy of all inbound consignments at factory as per agreed terms / conditions under
Government Rules /Regulations & benefits and L/c opening , Payables monitoring and payments to
Suppliers are carried out per due requirements
Achievements
Successful executions of DTS shipments For Nike & JCP by carrying out the
shipments Forms US warehouse.
2. NIKE e-Po Trade;

Staring of paper free EDI documentations with NIKE and receipts of payments without
printing a single Paper
Receipt of 100% claims under R&D scheme of Government o Pakistan (2005-2010)
Exporting out DDU, DDP, CIF, shipments and import shipments on Ex-Works and
FOB basis saved substantial revenue for the company
Main functions
 Relative support to develop new customers

 Pre-shipment Formalities
 Origin Custom Clearance
 Shipment Documentation
 Destination Handling
 Receivable Monitoring/Follow –up
Import section
 Support in the finalization of new Foreign Supplies
 Pre-shipment
Formalities
 Origin Formalities
 Payable Monitoring
 Payments Remittances
Work flow Activates
o Logistics ,destination Duties /Tariffs & Necessary Documentation of new customers
o Pre-shipment Formalities
o Origin custom Clearness
o Compliance of customer’s SOP /requirements
o Destination formalities for DD u/DDP/DTS shipments
o Receivable monitoring/Follow-up
4.7 MIS Department
Modern business is spurred on by technology and innovation. The driving force behind these two things
is information and how it is used. For decades, business used Information as a strategic tool to grow
customer base, market share, cut costs and to Gain the overall target of increased profits and
efficiency. In the modern environment, Information on its own isn't enough, what's required is a way to
use this information
Properly, keep it secure and to make it accessible to the appropriate entities. To do this, a new
strategic asset has been developed. The new asset is Information
Technology and in the business context it's called Management Information Systems (MIS).
Being a progressive company and keeping in view the importance of Information Systems for the
success, Interloop Limited has invested substantially in Information Technology. As a business strategy
and tool to enable improved productivity and
Objectives
The MIS department is established with a purpose to align the MIS initiatives of company with its key
performance indicators, thereby ensuring efficiency, transparency and accountability in the reporting
system of Production Planning, Production Management, Finance and HR with a focus on timely
availability of required information.
The key objectives of the MIS department are:

1. Provide reliable, consistent data flow mechanism and secure information online.
2. Enable departments to make right decisions based on online data.
Major Areas of Functionality
MIS
MIS department is divided into following areas of

functionality due to diversity of area of skills and
competency.
 Hardware and Networks

 Enterprise
Resource Planning
(ERP)
 Production
Management Systems
 Human Resource
Management
 Ware House Management System
 System Automation
4.8 Organizational Development Department
An Introduction
What is O D
“Organizational development is an effort panned ,organization –wide ,and managed from
top to .to increase organization effectiveness and health through planned interventions in the
organization‟s process ,using behavior –science knowledge.‟
Beck hard, “organizational development strategies and models

“Reading, MA Addison-Wesley, 1969, P.9
The OD vision
 “Organization Development …..Attempt to influence every contributor of interloop

to expand their candidness …..And to take greater responsibilities for their own
actions ……
 Assumption behind this vision is that
“When people pursue both of these objectives simultaneously, they are likely to
discover new ways of working together that they experiences as more effective for
achievement their own and their shared (organizational) goals….
Challenges
New department (we are just one year Old_)
Growth (transition From middle sized to a large sized organization)
Upcoming change ( interloop is going lean)
JOB Evaluation
Performance Management System
The process of managing performance all year long to support high performing Employees
- clear Objectives
- Focus on behavior
- Incremental progress
- planning &goals setting
-two-way Communication
Corporate Balance score Card
The balacned scorecard is a stratgic palanning and
manageamnetsystem that is
PAKISTAN
used extensivly in the business and industry ,govermet,and

nonoprofit orgaztions worldwide to aling business activites to
thevison and stratergy of orgaination ,improve interanl and
externalcommunications ,an dmonitor orgaiztion
performacne againststratgic goals
4.9 Introduction of Production Planning & control (PPC) &

Production Development (PD)
PPC is the back bone of entire Organization. PPC coordinates with merchandizing for assimilating
information about the sample socks then ,manufacturing the same, keeping for assimilating information
about the sample socks then manufacturing the same, keeping all customers requirement in view.
After the approval of sample, upon the recipes of formal orders, PPC manage to plan the same in
operation and arrange Raw Material and other perquisite in coordination with Supplies. During Planning
process all required resources and bottlenecks are identified and planned.
Once all customers’ Information & specifications along with Raw Material are Available, PPC provides
instructions in writing (in shape of work Orders) to operations for executions the orders.
During this process it coordination directly with Merchandizing , operations , Supplies ,I&E,I&E
departments.
Main Functions
 Product Development
 Master Panning Of Resources
 Material Requirement Planning
 % Inventory control
 Order Execution And Production Control
Objectives
Product Development
Cater maximum No. of development from our customers .Up to 300 development? Month
Plus sales samples & Testing samples.

TO
Page 62
Introduction
First Time Through sampling, 90% of the developments.
Development of new designs and CAD’s by Designing Team, Up to 100
Master Planning Of resources
Effective Utilizing of fast React Tools.
Order scheduling in FR- knitting (30 Plan Groups ) ,100% orders will be scheduled for knitting in
FR
Order scheduling O Orders in FR within CB working hours of theirs receipts in FR.

Optimum Utilization o knitting machines.
Material Requirement Planning & Inventory Control
Increases in inventory Turns (RM)
Reduction Machine down time due to RM unavailable by using Fast React MRP tool
To Monitor & minimum FG stocks
Complete MRP consolidating g data from Fast React & ERP
Order Execution &control
To ensure on time shipments
Project based material consumption analysis of non stock specialized yarns ( RCA)
Ensure execution of all schedule activities in fast react for on time order completion
4.10 P&S Department
Introduction of Department
 Before 2006, the purchasing activities were scattered, looked after by stores & the
departments themselves with only three individuals looking after mainly yarn
procurement.
 The team was reinforced late 2006, adding purchasing experts & establishing a sourcing
wing comprising of textile graduates.
 In 2007, the integration process went on along with establishment of departmental
procedures &restructuring of hierarchy to its current form.
Main Functions
„ There are three major sections with
in P&S
– Sourcing
– Procurement
– Planning
Workflow of Activities --- Sourcing
„ The responsibility of sourcing section is mainly divided into two groups
 Raw materials development for new customer requirements as well as for innovative
product/process improvement solutions.
 Vendor development and induction, involving material approvals as well as site evaluations.
 Troubleshooting quality issues in raw materials as well as other operations if required.
Workflow of Activities --- Procurement
„ Procurement section is divided into two teams based on the major areas handled i.e. local &imports.
„ The main procurement activities include,
– Receipt of Requisition
– Request for Quotes
– Prepare Comparison Sheet
Workflow of Activities --- Planning
„ A new induction in Supplies department inline with the modern Supply Chain concepts.
„ Core responsibility of this section would be to improve procurement efficiency using concepts
as Vendor Managed Inventory,
Objectives
 The core objective of the departments to arrange timely supplies of quality Raw materials
at the most competitive Price.
Achievements
 Centralization of procurement activities in a year’s time.
 First to complete ERP implementation.
 Major shift of advance payments to credit terms.
 Erection of major projects like HD-II UNIT-III & ILDH with no additional human resource.
 Process efficiency improved with introduction of alternate materials like Dope Dyed Nylon
and Polyesters.
 Major cost savings by relocation of sources to more competitive ones.

 Adding variety to offered raw materials by sourcing Mohair, Wool, Angora and other such
fibers.
4.11 Productivity Improvement Department

Interloop also have a dedicated PI department which is engage in the productivity
improvement in this regard the department is working on the followings”
1. Total Quality Improvement
2. 5-S Techniques
3. Ergonomics
• PMO (Project Management Office) Forum
• 5S Training & Implementation
• Value Stream Maps
• Identification of potential Kaizens
through VSM
• Kaizen Events
• PDCA
• Lean Enabling Information Flow
System (synthis)
ERGONOMICS
Company is working to minimize the hazard of muscular
Skelton diseases to employees
In continuation to these efforts; following steps have been taken to minimize the repetitive
motions and awkward postures leading to
MSD:
 Provision of Low Height Table for carton filling and provision of stoles
to Packers
PAKISTAN
 Provision of Conveyer for loading socks in dryers

 Provision of Spring loaded trolley
 Provision of Toe Truck for transportation of material trolleys
Chapter 5 Export Performance of Interloop Limited
5.1 Introduction to Export Department

Handles all logistical arrangements and finance transactions relevant to inflow of
production inputs and outflow of our products
In this rereads we coordinates with customers ,suppliers, Government Offices and
service Proviso such as shipping lines ,forwards ,transport companies and bancs ,to
execute and follow up on myriad activates such inbound and outbound shipments,
documentation and payment.
5.2 Objectives:
 To ensure the timely delivery of all export shipments under cost
effective arrangements and complying the customer’s SOP , Government
Rules / Regulations & benefits with minimum transit times and
maintaining their receivables at lowest level
 To ensure the delicacy of all inbound consignments at factory as per
agreed terms / conditions under Government Rules /Regulations &
benefits and L/c opening , Payables monitoring and payments to
Suppliers are carried out per due requirements .
5.3 Achievements:
Successful executions of DTS shipments For Nike & JCP by carrying
out the shipments Forms US warehouse.
2. NIKE e-Po Trade;
Staring of paper free EDI documentations with NIKE and receipts of
payments without printing a single Paper.
Receipt of 100% claims under R&D scheme of Government o Pakistan
(2005-2010)
Exporting out DDU, DDP, CIF, shipments and import shipments on Ex-
Works and FOB basis saved substantial revenue for the company.
Importation under Governmental benefits.
PAKISTAN
5.4 EXPORT DOCUMENTATION

I found export documentation department as the major department which gives
concrete visibility to the deals and operational flow of the organization in the form
of the documentation. This is the way through which every process and deal gets
the proper track and proof through the relevant documents. This is how the
documentation process gets the legal value.
For me export documentation is a;
 Dealing track.
 Legal performance proof of a business entity.
 Provocation of sequential communication circles.
EXPORT DOCUMENTS
Documents essentially required by the buyer in every deal:

1. Bill of exchange.
2. Invoice.
3. Bill of lading.
4. Packing
1. DOCUMENT PREPARATION SEQUENCE
1.1 BANK/ PARTY DOCUMENTS:

1. Sales contract / LC.
2. Commercial invoice.
3. Form E
4. Bill of lading.
5. Packing list.
6. Stacking list.
TO
Page 67
Introduction
7. Form M (in case of admission paid to any one).
8. Quota documents (required only when exports are made to quota
countries).
9. Certificate of Origin from Chamber of Commerce and Industry
(if required in the importer’s country).
10. Other certificates as required in importer’s country.
2. SHIPPING COMPANY DOCUMENTS:
1. Performa Bill of lading.
2. Bill of lading (requested after giving Performa Bill of lading).
3. Shipping bill.
4. Shipment invoice (intimation to customer clearance department).
5. Air freight Performa.
3.CUSTOM CLEARANCE DOCUMENTS:
1. Commercial invoice.
2. Packing list.
3. Form E.
4. Shipping Bill.
4.COLLECTION DOCUMENTS:
1. Advance payment (T.T payment).
2. D/P (Documents against Payments).
3. D/A (Documents against Payments in days).
5 NEGOTIATION DOCUMENT:
1. L/C (Letter of Credit).
5.5 Company as a
Proud Manufacturer of Prestigious Brands Customers
Customer Portfolio with destination:

We proudly produce prestigious brands. List of brands we are currently
producing, clearly defines the highest quality standards and service Interloop
Limited is capable of offering to its clients.
United State of America
1. GOLD TOE BRANDS

Destination:
United state of America New York City
2. K-MART
Destination:
Kmart's world headquarters was located in Troy, Michigan, but since the merger with Sears has been
relocated to Hoffman Estates, Illinois. Kmart also exists in Australia and New Zealand
3. RENFRO CORPORATION
Destination:
661 Linville Road
Post Office Box 908
Mount Airy, NC 27030-0908
4. CANDOR HOSIERY
Destination:
Candor Hosiery Mills makes and distributes men's, women's, and children's leg wear. The company
specializes in athletic socks and supplies Wal-Mart stores through its four factories in North Carolina.
Address: 13128 Hwy 24-27 West

Robbins, NC 27325-0249
Phone: 910-948-3600
Fax: 910-948-2142
5. CHARLESTON HOSIERY
Destination:
3398 WINN AVE NE
FORT PAYNE, AL 35967-3870
United States
6. CRESCENT HOSIERY
Destination:
527 E Willson St Niota, TN
37826
527 E Willson St Niota, TN
37826
7. INTERNATIONAL LEQ WEAR GROUP (ILG)
Destination:
International leg wear is a group how deals in different categories in united state
8. HOPE HOSIERY
Destination:
Hope Hosiery manufactures and markets socks for distribution primarily in the US. The company was
founded in 1903 and has been under current ownership since 1983.
205 Washington Street

Denver, PA 17517
Phone: 717-336-4545
Fax: 717-336-4662
9. ABC HOSIERY
Destination:
426 S Cross Street
Youngsville, NC 27596-8708
Phone:
(919) 556-5630
10. NEW CENTURY HOSIERY

Destination:
1615 S Main Street
Los Angeles, CA 90015-3607
Phone:
12. ISACO
Destination:
11. JCPENNEY
Destination:
Salt Lake City, Utah
12. HANES BRANDS INTERNATIONAL

Destination:
13. NIKE
Destination:
EUROPE
UK
1. WOOLWORTHS, UK (Thru Zivtex)

PAKISTAN
Destination:
Stores in Britain
Woolworths started out in the UK in 1909 as F.W Woolworth & Co, part of the American company
that was established in 1879. The first store was on Church Street in Liverpool and sold children's
clothing, stationery and toys from the very beginning.
2. TESCO STORES – UK
Destination:
Cheshunt, Broxbourne, Hertfordshire,
England,
United Kingdom
FRANCE
1. BENJAMIN SA FRANCE
2. PRO ACT FRANCE
3. GROUP CASINO – FRANCE
Destination:
Dhaka Liaison Office:

Landview Commercial Centre (6th Floor)
28, Gulshan North Avenue
Gulshan 2, Dhaka-1212, Bangladesh.
(880-2) 883 3169-70 Ext.233
880-2) 883 3168

PAKISTAN
4. GROUP VIVARTE – FRANCE
Other European Customers

1. ALBER ITALY
2. FILA, EEC
Destination:
South Korea
3. DUNNES STORE IRELAND (Thru ZIVTEX)

Destination:
Duplin,IRELAND
4. DIA SPAIN
Destination:
Las Rozas, Spain
Area served Spain,
France, Portugal, Greece, Turkey, Argentina, Brazil, China
5. PUMA, EEC (DOBOTEX)

Destination:
Duplin, IRELAND
6. FRIENDS TEXTILE, ESTONIA

10117 Tallinn
Estonia
7. OBERNDORFER BEINMODEN- AUSTRIA

Destination:
Negrellistrasse 38, Wels, Oberoesterreich, Austria

TO
Page 73
Introduction
City/Town: Wels Province/State: Oberoesterreich
Country/Region: Austria
Zip/Postal Code: 4600
8. SERGIOTACCHINI
Destination:
Bellinzago Novarese Novara, Italy.
9. COTEM KID
Destination:
SPAIN
CANADA
1. LAMOUR HOSIERY
Destination:
Address: 200-55 Rue De Louvain
O, Montréal QC,
H2N 1A4
2. MCGREGOR INC
AUSTRALIA
SLAZENGER, RIO (HOLEPROOF AUSTRALIA

5.6 Volume of Export
Export of the Company

Capacity Million Dozens
Knitting per month 2.8 Million dozens
Dyeing per month 2.8 Million dozens
Packing per month 3 Million dozens
Minimum order qty 2,500 dozens( variable as per terms)
Minimum Lead time 45-60 days after approvals
Short lead time possible for repeats
Years Wise Dozens Exports
Year 2006 2007 2008 2009 2010 2011

Dozens Export 12,245,561 15,375,158 20,000,000 21,000,000 25,000,000 30000000
Growth 13% 26% 30% 5% 20% 80%
Dozens
40000000
35000000
30000000
25000000
20000000
15000000
10000000
5000000 Dozens
0
20052006200720082009201020112012
5.7 Measures of Company Export Performance
Best Export Performance Trophies
Sr. # Financial Year FPCCI Trophy # Category Receiving Date

1 2001 - 2002 26th Special Merit Trophy 29-Aug-2003
Special Merit Trophy, Best
2 2002 - 2003 27th 29-Aug-2003
Export Performance Trophy
3 2003 - 2004 27th 07-Dec-2004
Trophy
4 2004 - 2005 29th 04-May-2006
Trophy
5 2005 - 2006 30th 27-Dec-2006
Trophy
6 2006 - 2007 31st 01-Dec-2007
Trophy
7 2007 - 2008 32nd 22-Dec-2008
Trophy
7th Best Export Performance Trophy

for Interloop Limited
Every year, the Federation of Pakistan Chambers of

Commerce and Industry (FPCCI) hold a Best Export
Performance Awards ceremony to recognize the biggest
exporters in the country across several industries.
By the grace of God Almighty, this was Interloop's 7th time
winning a Best Export Performance Trophy. The ceremony
was held in Karachi on the 22nd of December, 2008.
It was a moment of pride for all of us when the Prime Minister of Pakistan, Mr. Yousaf Raza Gilani,
awarded the trophy to our CEO, Mr. Musadaq Zulqarnain. This achievement is a reflection of the vision
and commitment of our top management as well as the dedication of Interloop's entire workforce
5.8 Conclusion
Many congratulations and thanks must go out to all the Interloop team; our management,
executives and labor force. Their competence and commitment in every aspect of the
business, from the efficient use of resources to the meticulous customer service we strive
for, has endowed Interloop with such successes. We humbly thank God Almighty and pray
for continued success in the future.
It is enough to say that the company has best performance of Export as;
Interloop is consistent winner of best exporter’s trophy for last 6 years

THE HOSIERY MIRACLE OF PAKISTAN Project Report
PART –II FINANCE DEPARTMENT OVERVIEW
Message From director Finance:

The director finance gives a comprehensive message to al the interloop Limited family interloop in
house Interloop Limited Newsletter “In the Loop”
“I want to convey my thanks to the „in the loop “team for providing
me with an ideal opporuity to address our present concerns.
It is through our in-house magazine that we regularly share the
company‟s progress with its stakeholders. The world has
undergone a great recession since 2008. As a result of which
businesses have faced multiple issues and although the
economies of various countries are slowly improving, a full
recovery is yet to occur.
Similarly the industrial sector of our country, particularly the
textile industry, has faced a series of dire challenges. In
addition to world – wide economic crunch. Problems such
as power shortages, insecurity, inflation and other socio-
economic issues have plagued Pakistan over the past few
years. In additions to all these factors the sudden increase in
cotton/yarn prices s during the years 2009 and 2010 was no
less than a disaster for the value-added textile industry. It
was b=next to impossible for the exporters cute the previously
committed orders. However by the Grace of Almighty Allah and
with proper planning courtesy of the interloop team .besides
achieving record sales we have shown outstanding results as
regards the financial index.
I can‟t precede a future with out acknowledging the
contribution of our spinning division. Keeping in view the
increased demand for our products, our Board of directors
has approved an Expansion plan for our hosiery business.
The cost will amount to PKR 1400 million and this unit will be
completed by the end of the first quarter of the year 2011. In
addition, our other projects are also in the pipeline. A
factory and land for Interloop Bangla Limited have been
procured in the Bangladesh. Hopefully this unit will
commence
SUBMITTED operations
TO by the end of the first quarter of MOHI-UD DIN ISLAMIC UNIVERSITY
Finance department overview Page 78

2011. As far as our business diversifation efforts are concerned, we have incorporated a nascent
company, Interloop Dairies Limited .In Pakistan for which the land selection is in its final stages.
This unit will have reached completion by 2011.
Interloop, always realized its corporate social responsibility and has generously contributed each
year for the social welfare.
As part of its latest efforts, interloop singed an MOU with “The Citizens Foundation “for the
establishment of primary/ high school for providing quality education to poor people. Two
secondary schools have been established and three pieces of land have been purchased at
different locations for building more schools. We also provide complete capital expenditure and
running expenses for these schools.
As everybody knows this year our nation was hit by the worst floods in its entire history.
Millions of houses got destroyed in the process. Around fifteen million victims were left
dispossessed. Our government .with its limited resources. Is making every possible effort to help
.it is high time that every citizen should realized his .her responsibility and contribution towards
rehabilitation of affected people
.towards this end , Interloop Limited has set up a Flood Relief Fund. Under this fund, food and
other necessities of life are being provided to the affected people in various areas. Our
prayers are with those affected by this catastrophe. We will leave no stone unturned in helping
them get back on their feet again.
CHAPTER 1
Finance Department
2.1.1 DEFINING FINANCE
 Finance is Science and Art of managing money.
 Finance is the study which shows that how people allocate their resources over a
time period.
Introduction to finance Department
Finance department is of paramount importance for the success of any organization. The same is
playing a prime and decisive role in the development, expansion and prosperity of Interloop Limited
under the Guidance of our worthy Director Finance
The finance department at interloop plays an important role in providing assurance about the state of
the business to its stakeholders. It presents consistent financial information, risk management and
control that enable the company to drive performance improvement, evaluate capital investment and
meet external reporting obligations.
The finance performed various function ranging from cash flow management to financial reporting.
Recording, classifying and summering business transactions into consolidated financial statements, so
that fulfill the information need of our diverse shareholders, is an important activity carried out be the
departments.
Furthermore we are successfully managing our ever-increasing debt portfolio by minimizing our
financial costs through negotiation of better terms with our lenders.
The financial department is also responsible for meeting Interloop’s daily cash flow requirements, as
well as for arranging funds for new capital investment.
2.1.2 Organizational Structure
2.1.3 Objective The department

To put in place and operate systems and procedures which safeguard the assets of the company and
which process transactions effectively and cost efficiently.
The followings are the main objectives of the finance department are;
 Direct, control and administer the financial activities of the organization, and provide the
Chief Executive and the Board with financial assessments and information which will
ensure planning and budgeting activities meet corporate goals.
 Specific accountabilities
 In consultation with other senior management, make recommendations and devise
financial policy approach, and strategy.
 Establish and direct the organisation's financial administrative activities and

operational procedures to ensure the organisation's profits are protected.
 Plan the financial operations of the organisation.
 Provide financial information and interpretations to other management.
 Co-ordinate the development, implementation and monitoring of financial accounting
and related systems.
 Direct the collection of financial and accounting information and the preparation of
budgets, reports, forecasts, and consolidated profit and loss reports.
 Co-ordinate the design, implementation and monitoring of up-to-date or computerised

accounting and administrative systems.
 Direct and co-ordinate economic research, major feasibility studies involving

detailed financial analysis, and estimates of future returns on proposed investment.
 Evaluate the financial aspects of proposed acquisitions, investments, mergers, or the sale
of assets or businesses.
 Give assessments of proposals involving financial expenditure and of the financial status
of operational projects.
 Control activities such as taxation, credit policy, cash flow and investment policy, costing
and expense control, preparation of tenders, audits administration of contracts,
insurance arrangements and property administration.
 Represent the organisation in dealings with the organisation's bankers, legal advisers,
major clients and others as required.
 Make policy decisions and accept responsibility for operations, performance of
staff, achievement of targets and adherence to budgets, standards and procedures.
 Control the selection and training of finance staff, establish lines of control and delegate
responsibilities to subordinate staff.
2.1.4 Strength of Finance Department
Total Strength of Finance Department = 38
2.1.5 Department operation/ Function of

Finance Department
1. ACCOUNTS SECTION OF FINANCE
DEPARTMENT
This section consists of 4
major sub-sections
General Ledger
Accounts Payable
Accounts Receivable
Fixed Asset
FUNCTIONS OF GENERAL LEDGER

The General Ledger is central to the entire financial system. The few salient
functions of General Ledger are summarized below:
 Posting of General entries & Provisioning of expenses
 Importing data from sub modules and making reconciliations
 Preparation of Trial Balance
 Preparing individual financial statements of different divisions
 (Hosiery, Spinning, Energy, Yarn Dyeing)
 Consolidating Individual financial statements
 Ratio analysis & Variance Analysis
FUNCTIONS OF ACCOUNTS PAYABLE

To provide timely, accurate and efficient control of processing invoices for payment
of bills and analyzing expenses to improve cash flows, while maintaining close
relationship with suppliers.
• Entry of indirect foreign & local invoices through Goods Receipt Note
• Entry of Direct Invoices
• Prepayment of Foreign & Local Vendors
• Preparing Invoices for Payments of Foreign & Local Vendors
• Matching of Standard & Prepayment Invoices
• Reconciliation with Party Accounts
• Aging analysis
FUNCTIONS OF ACCOUNTS RECEIVABLE
Main objective of Accounts Receivable Modules is to ensure recording of sales
transaction (Receivables & Receipts) for goods & services delivered/rendered by
the company. Receivable module performs the following functions:
 Recording of Sales & Receipts Transaction of
• Export, Local and Internal sales of Socks,
• Yarn Sales
• Waste Sales of all kinds
• Reconciliation with party accounts
• Aging analysis
FUNCTIONS OF FIXED ASSETS CELL
Primary objective is to maintain an accurate inventory of capital items used by the
company and to provide guidelines to follow in recording these capital items. This
objective is performed in accordance with the company's capitalization policy on
what determines Fixed Assets.
Functions of Fixed Asset:
• Preparation of purchase requisition and generation of F.A code


• Location wise recording of fixed asses in the system

• Reconciliation of CWIP
• Periodic physical verification of Fixed Asset
• Capital Budgeting
2. FUNCTIONS OF FINANCE
SECTION (BANKING &TREASURY)
Finance (Banking & Treasury) section is performing the
following functions.
LOAN & MARKUPS:
• Availing, rollover and renewal of short term loans.

• Availing and renewal of long term loans
• Provisioning of mark ups on monthly basis
• Arrangement of necessary documents for new financing facilities & renewal of
existing financing facilities
• Arranging new and / or renewal of existing bank guarantees
• Preparing consolidated repayment schedule of Long Term Loans
• Liaison with banks for their routine requirements relating to financing facilities
FUND FLOWS:
• Preparing daily fund position
• Evaluating cash financing against pledge, availing and arranging their respective
adjustments
• Daily fund planning for mark up payments, import payments, leased
payments keeping in view daily fund position and projected receipts etc.
• Maintaining daily currency rates in ERP module
• Preparing bank reconciliations
• Arrangements of funds and follow ups for payment of long term loan
installments within due dates
• Monitoring export proceed transactions on daily basis and updating the same in
ERP
• Preparation of monthly consolidated fund flow statement and comparison of
actual results to observe the variance
GENERAL FUNCTIONS:
• Preparation of feasibility studies for different capital investment projects
• Coordination with MIS department for improvements in ERP Loan
Management Module and to make amendments in other ERP
modules
• Entering costs of yarn counts being produced, in ERP module and calculation of
profit/loss of spinning division on daily basis.
• Any other assignment as per the directions of management

ENTERPRISE RESOURCE PLANNING (ERP)
Enterprise Resource Planning

(Software)
. Software used to plan and manage the

basic commercial functions of their
business, such as budgeting, accounting,
human resources, material flows, etc
LIST OF IMPLEMENTED MODULES OF

ERP
„ FINANCIAL
•Oracle General Ledger
•Oracle Payables
•Oracle Receivables
•Oracle Cash Management
•Oracle assets
•Loan Management Module
„ INVENTORY MANAGEMENT
•Oracle Inventory
•Oracle Cost Management
„ PROCUREMENT
•Oracle Purchasing
„ HRMS
•Payroll
„ Future Plans
•Taxation Module
•Oracle Order Management

•Oracle Business Intelligence
•Oracle Manufacturing
•Supply chain Management
3. FUNCTIONS OF TAXATION
Taxation section takes care of all tax matters of the company which
Includes:
 EOBI
 Sale tax
 Social security
 Income tax
 Excise Duty
Procedures of Finance Department
The procedure that is followed by this department is as under;
 Finance/Account section deals with all financial transactions i.e.

bank dealings, payments including OEBI & social security returns
etc.
 Vouchers are prepared for each accounting transaction, compiled with
required receipt and presented to GM for signing (salary transfer is also
included in this vouching).
 Accounts statement, balance sheet, profit & lose and stocks reconciliation
is also the responsibility of this section.
 Inventory payable is prepared for purchase orders through inventory section.
 In auditing, all transactions are dually checked by audit staff.
 Sales tax returns, income tax exemption (company returns) and etc
are performed through taxation section.
 All related data is operated by a database and reports are generated
through the system.
FINAL WORD
The inclination of the management towards creativity and streamlining the
functioning of the department makes every day, for the personnel, full of learning. In
short Finance section of Interloop Limited is a place where anew joiner can
enormously enhance his analytical skills and creativity
CHAPTER 2
Participating Banks
Interloop has the best relation with its banks, the daily and monthly traction has been done with banks
and other relations are also built, the following are the corporative banks of the company;
1. Atlas Bank limited
2. summit Bank
3. National bank of Pakistan
4. THE STATE BANK OF PAKISTAN
.
5. THE STANDARD CHARTERED BANK
6. HIBIB BANK LIMITED
7. BANK OF PANJAB
8. FAYSAL BANK LIMITED
6. BANK ALFALAH LIMITED
7. ALLIED BANK LIMITED
8. SILK BANK
9. UINTED BANK LIMITED
10. MCB BANK LIMITED
11. Meezan Bank Limited
12. NIB Bank limited
13. KASB Bank Limited

14. Bank AL- Habib limited
15. Barclays Bank PLC
16. Habib metropolitian Bank Limited
Suggestions
Interloop is a vertical unit, who believe in continuous improvement, the following are some
main suggestion to finance department.
 Administratively, the building of finance department should be separate and valued suited,
so the working of employees becomes easy.
 The strength of the employees is low as compare to the working and job responsibilities, that
way the most of the time, officers not available for each other which Is good for the health
of the employees, the strength should be increase
 The sub division of department is no doubt good, but there still need to formulate
 The company is moving toward the 5S- techniques, but finance department is to slow to
manage and implement the 5s- techniques. My suggestion is to increase the strength or
delegate and make responsibility of every officer to update and mange its working place as
per 5S- techniques.

 Technically the division of work is good but the person handing to these has no training to
reduce the job related stress.
 Ergonomics is one key to keep the worker health good, but there is environment which is not
comfortable so the my opinion is to introduce the techniques of Ergonomics
 The business world is fast moving and improving world so the department has a cell how
inform the upcoming techniques and procedure to enhancement.
 There is no display of foreign exchange and connectivity with the Stock Exchange. Which is
a key, to finance improvement of every business my opinion is to make the department
arrangement and then have display showing index number and other detail of the foreign
Exchange and stock Exchange.
 The combination of department is two and profession, so my opinion is to introduce

communication skill improvement techniques and training.
 Record keeping is not suitable and fit for audit concern and the audit team always faces
difficulty while collecting the data to be audited.
 The software is in good and competitive but the hardware is not up-to-date, my opinion to
introduce the LCD listed of monitor.
What's Happening?
Interloop is not only the largest Socks Manufacturer in South Asia, it is also the one which delivers the
highest quality. We are in continuous pursuit of excellence. In order to retain and consolidate our
position as an important global player, we are enhancing our capacities, investing to improve our
efficiency and adding backward integration.
 A Yarn Dyeing Plant of 7.5 Ton daily capacity is now in operation.
 BMR Project in Spinning Division has enhanced its capacity by 8000

lbs/day.
 Interloop has added equipment to increase its capacity of infant socks

to3,000,000 dozen pair/day.

 Four frames on SLUB YARN in Spinning.
 A new Yarn Warehouse has been added in Hosiery Division – I with Pallet Racking System.
 Production Unit – III, Hosiery Division – II is now in operation.
 QA Lab has been certified against ISO 17025.
 Hot Water Chiller Plant and Heat Recovery Boiler have been installed in Energy Division.
 TPM Project has been started.
 Project CARE Continues
 Continues Improvement
 Employees Training
 Safety Day
 World Water Day
 CSR Activities
Part III Theoretical and practical concepts
PART 1-CRITAICAL ANANLYSIS
CAHPTER 1 FINANCIAL STATMENT
1.1 Definition
“A financial statement (or financial report) is a formal record of the financial activities of a business,
person, or other entity.”
In British English—including United Kingdom company law—a financial statement is often referred to
as and account, although the term financial statement is also used, particularly by accountants.
“A written report which quantitatively describes the financial health of a company. This includes an
income statement and a balance sheet, and often also includes a cash flow statement. Financial
statements are usually compiled on a quarterly and annual basis.

TO
Theoretical and practical concept-Critical Analysis Page 93
2.1.1. Vertical and horizontal analysis of consolidated income statement
Common-size Analysis (vertical and horizontal)
Interloop Limited
For the Years
Vertical common size 2011 2010 2009 2008

percentage percentage percentage percentage
Sales- net 2229.87 172.92 140.8 100
Cost of sale 225.76 166.98 138.2 100
Gross profit - - - -
Operating Expenses
Distribution costs 387.73 340.47 252.43 100

Administrative expenses 324.57 256.36 192.18 100
Other operating 844.55 379.75 147.44 100
expenses
Finance cost 157.14 122.04 153.54 100
Total operating - - - -
Expenses
Other operating income 270 230.79 236.29 100

Profit before Taxation 204.65 172.21 104.81 100
Taxation 212.70 158.49 122.75 100
Profit for the year 203.45 174.26 102.12 100
Earning per share 7.19 6.16 3.61 3.54
Horizontal common Size
Sales- net 100 100 100 100

Cost of sale 78.95 77.62 78.91 80.38
Gross profit - - - -
Operating Expenses
Distribution costs 4.85 5.66 5.15 2.88

Administrative expenses 3.47 3.64 3.35 2.45
Other operating 1.61 0.96 0.46 0.44
expenses
Finance cost 3.85 3.97 6.13 5.63
Total operating
Expenses
Other operating income 0.16 0.17 0.22 0.13

Profit before Taxation 7.43 8.31 6.21 8.34
Taxation 1.01 0.99 0.94 1.08
Profit for the year 3.43 7.31 5.26 7.26
Interpretation
2. Vertical and horizontal analysis of consolidated Balance sheet Liabilities side
Common-size Analysis (vertical and horizontal)

Interloop Limited
For the years

LIBILITIES
PARTICULAR
EQUITY AND
LIBLIITES
SHARE CAPITAL AND
RESERVE
Share capital 100.1 100.1 100.15 100
unappropriate profit 142.4 1994.4 131.75 100
TOTAL - - - -
NON CURRENT
LIBILITES
Long term financing 344.2 89.3 114.33 100
Liabilities against assets 11.07 14.79 66.80 100
subject to financial lease
Long term deposits 350 100 136 100
Deferred Liabilities - 266 173.81 100
CURRENT LIABILITES
Trade and other payables 155 79.2 118.44 100
Accrued mark up 167 167.08 192 100
Short term borings 178.9 130.4 137.9 100
Current portion of non- 65.93 100 - -
current liabilities;
-long term financing - - 112.2 100
-liabilities against assets - - 109.4 100
subject to finance lease
Tex and duties payable 94.63 100 - -

Provisions for taxation - - 37.40 100
CONTINGENCIES AND
COMMITMENTS
Horizontal common 2011 2010 2009 2008

size percentage percentage percentage percentage
LIBILITIES
PARTICULAR
EQUITY AND
LIBLIITES
SHARE CAPITAL AND
RESERVE
Share capital 9.37 13.30 14.11 1.69
unappropriate profit 21.30 21.73 15.271 13.91
TOTAL -
NON CURRENT
LIBILITES
Long term financing 23.71 8.95 11.8 12.47
Liabilities against assets 0.45 0.88 4.129 7.41
subject to financial lease
Long term deposits 1.97 2.17 0.071 0.063
Deferred Liabilities 5.47 2.17 1.475 1.01
CURRENT LIABILITES
Trade and other payables 5.47 7.93 6.30 6.38
Accrued mark up 1.047 0.89 1.071 0.66
Short term borings 34.27 36.3 39.85 34.68
Current portion of non- 2.25 7.28 - -
current liabilities;
-long term financing - - 3.39 3.63
-liabilities against assets - - 2.34 2.57
subject to finance lease
Tex and duties payable 0.125 0.193 - -

Provisions for taxation - - 0.08 0.26
CONTINGENCIES AND
COMMITMENTS
2. Vertical and horizontal analysis of Balance sheet
Common size analysis (vertical and horizontal) Assets Side
Interloop Limited
For the years

ASSETS
PARTICULAR
NON CURRENT
ASSETS
Property, plant ,and 190.8 112.7 110.22 100
equipment
Intangible assets 164.8 175.3 100 100
Long term investment 8127 325 119.8 100
Long term loan - - 100 100
Long term loan and 153 147.7 - 100
advances
Long term deposits 115.5 32.17 100.6 100
CURRENT ASSETS
Store and trade 217.1 177.5 144.2 100
Stock in trade 135.7 123.6 143.5 100
Trade debts 203.7 155.9 139.1 100
Loans and advances 144.5 77 62.7 100
Deposits and 107.1 471.5 49.7 100
prepayments
Other receivable 239.0 64.93 109.1 100
Cash and bank balance 342.7 1153.2 203.9 100
Horizontal common size
ASSETS
PARTICULAR 2011 2010 2009 2008
NON CURRENT
ASSETS
Property, plant ,and 52.6 4.28 44.29 49.6
equipment
Intangible assets 0.159 2.46 0.145 -
Long term investment 2.04 0.045 1.18 0.045
Long term loan - - 0.094 0.13
Long term loan and 0.096 0.13 - -
advances
Long term deposits 0.29 1.187 3.65 0.113
CURRENT ASSETS
Store and trade 2.67 31.8 2.67 2.23
Stock in trade 19.01 25.16 30.32 25.35
Trade debts 2.73 17.91 16.58 14.30
Loans and advances 0.28 2.11 1.78 3.41
Deposits and 0.13 0.88 0.096 0.233
prepayments
Other receivable 4.01 2.66 1.64 3.042
Cash and bank balance 0.46 2.29 0.42 0.247
CHAPTER 3
Analysis of Accounting Ratio

Ratio analysis:
It is used to analysis to plan, to control, and to identify weakness
within the firm. Creditors use the analysis to establish the ability of the
borrower to pay interest and retire debt.
Ratios may be computed and interpreted from two perspective
1. Time-series analysis
2. Cross-sectional analysis
TIME-SERIES ANALYSIS:
Time –series is an analysis of the firm over a period of time.
CROSS-SECTIONAL ANALYSIS:
An analysis of several firms in the same industry at a point in time.
We are going to use time series analysis of a firm using different ratios.
1.ANALYSIS OF SHORT-TERM FINANCIAL POSTION OR TEST

OF LIQUIDITY
LIQUIDITY RATIO
A comparison of current assets with current liabilities gives an indication of the short-term debt-paying
ability of the entity. Several comparisons can be made to determine this ability;
1.1. Working capital:
The working capital of businesses is an indication of the short-run solvency of the business.
Working capital = current assets – current liabilities
Particulars 2011 2010 2009 2008

Rupee Rupee Rupee Rupee
Current Assets 6088,966,750 5030,350,319 4,787,539,711 3,638,056,616
- Current Liabilities 5824,256,681 4884,160,797 4744,357,735 3591,232,588
Working Capital 2647710069 146189522 43181976 46824028
Interpretation
The inventory as reported may be much less than its replacement cost, the difference between the
reported inventory amount and the replacement amount is normally material.
The current working capital amounts are always compared with past amount to determine if working
capital is reasonable.
Comments
Working capital increased which shows that there is an increase in
current assets, which is good indication.
1.2 Current Ratio

Another indicator, the current ratio, determine short-term debts –
paying ability,
Current Ratio = current Assets

Current liabilities
Particulars 2011 2010 2009 2008

Current Assets 6088,966,750 5030,350,319 4,787,539,711 3,638,056,616
/ Current Liabilities 5824,256,681 4884,160,797 4744,357,735 3591,232,588
Current Ratio 1.045 1.029 1.009 0.102
Interpretation
A comparison with industry average should be made to determine the
typical current ration for similar firm’s .in some industries, a current
ratio substantially below 2.00 is adequate .in general, the shorter the
operating cycle, the lower the current ratio wise versa.
Comments
Higher the ratio greater the ability to pay current liabilities which shows
good liquidity position.
1.3 Liquidity, Acid-Test / Quick Ratio:

The current ratio evaluates an enterprise’s overall liquidity position
considering current assets and current liabilities .At times ,it is
describe to access a more immediate position than that indicated by
the current ratio, the acid –test ( or Quick ) ratio relates the most
liquid assts to current liabilities .
Acid-Test Ratio = current Assets – Inventory (QUICK ASSETS)

Current Liabilities
Particulars 2011 2010 2009 2008

current Assets – 3,163,202,431 2,400,239,994 1,836,029,491 1582906580

Inventory (W:1)
/Current Liabilities 5824,256,681 4884,160,797 4744,357,735 3591,232,588
Acid-Test Ratio 0.54 0.49 0.38 0.44
W:1 current Assets – Inventory

Particulars 2011 2010 2009 2008
Current Assets 6088,966,750 5030,350,319 4,787,539,711 3,638,056,616

– Inventory 2,925,764,319 2,630,110,325 2951510220 2055150036
current Assets – Inventory 3,163,202,431 2,400,239,994 1,836,029,491 1582906580
Inventory
Particulars 2011 2010 2009 2008
Store and spares 360,963,570 295,033,986 239,669,499 166,201,392

+ sock in trade 2,564,800,749 2,335,076,339 2,711,840,721 1,888,948,644
Total inventory 2,925,764,319 2,630,110,325 2951510220 2055150036
Interpretation
As it eliminate inventory and prepaid expenses for matching against

current liabilities there fore it is a more rigorous test of liquidity as
compared to current ratio. When used along with current ratio it gives a
clearer picture of business’s liquidity postions.The ability to meet
liabilities is influence by such factors as
1. Rate at which cash flows into the firm.
2. Time at which bills become due.

3. Relationship between the company and its creditors.
4. Firm’s ability to raise capital.
Comments
Rule of thumb for acid test ratio is 1:1 i.e. if the business liquid assets
are 100 percent of its current liabilities it is considered to be having
fairly good current financial position.
1.4 Absolute liquid ratio:

Absolute liquid ratio extends the logic further and eliminates accounts
receivables (sundry debtors as bills receivables) also. though receivable
are more liquid as compare to inventory but still there may be doubts
considering there time and amount of realizations therefore ,absolute
liquidity ratio relate s cash ,bank and marketable securities to the
current liabilities .
Absolute liquid ratio = Absolute liquid assets
Current liabilities
Where absolute liquid assets = cash + Bank + (` marketable securities)
Particulars 2011 2010 2009 2008
Absolute liquid 63,274,737 212,885,489 37,651,299 18,463,222

assets
/Current Liabilities 5824,256,681 4884,160,797 4744,357,735 3591,232,588
Absolute liquid ratio 0.01 0.04 0.007 0.005
Interpretation
Absolute liquid ratio lays down very strict and exacting standard of
liquidity; therefore, acceptable norm of this ratio is 50 percent. It
means absolute liquid assets worth one half of value the current
liabilities are sufficient for satisfactory liquid positions of a business.
Comments
The absolute ratio in this case is 0.075 which is better as compared to
rule of thumb standards which is 0.50.
Other liquidity consideration:
Another ratio that is useful is the sale to working capital ratio; in addition, there may be L8IQuidity
considering that is not on the face of the statements.
Sale to Working capital (working Capital Turnover ratio):
Relating sales to working capital gives an indication o the turnover in working capital per year.
Sales to working Capital = Sales /Average working Capital
Particulars 2011 2010 2009 2008
Net Sale 14,114,654,216 10618085875 8647,863,371 614.0220,989
Working Capital 264,471,0069 14,618,522 431,81976 468,824,028
Sales to working Capital Ratio 53.32% 72.63% 200.26% 131.13%
Interpretation
A low working capital turnover ratio tentatively indicates an unprofitable
use of working capital. In other words, sales re not adequate relation to
the available working capital. A high ratio tentatively indicate that the
firm is undercapitalized (overtrading)
Comments
The above ration indicates a good trend o the company.
PROFITABILITY MEASURES /RATIO:

Profitability is the ability of the firm to generate earning s. Analysis of
profit is of vital concern to stockholders since they derive revenue in
the form is of dividends. further ,increased profits can causes a rise in
market price
,leading to capital gains .profit are also important to creditors because
profit are one source of funds for debt coverage. Management use profit
as a performance measure.
The income statement contains several figures that might be used in
profitability analysis. In general, the primary financial analyses of profit ratios
are include only the types of income arising from the normal operations
of the business.
This excludes the following:
1. Discontinued operations
2. Extraordinary items
3. Cumulative effect of changes in accounting principles
2.1 Gross Profit Margin:

Gross profit equals the difference between net sales revenue and the
cost
of goods sold.
Gross Profit Margin = Gross Profit

Net sales
Particulars 2011 2010 2009 2008

Gross Profit 2,971,531,255 10,618,085,875 1,824,014,304 1,204,369,955

14,114,654,216 2,376,092,846 8,647,863,371 6,140,220,980
Net sales
Gross Profit Margin 0.21% 4.46% 0.21% 0.196%

Interpretation
Gross profit margin helps us a number of weys, our manager manage
budget gross profit level into their predications of profitability. Gross
profit margin is used in cost control.
Comments
Company gross profit ratio is better instead of 2010 the overall ratio is
good and manageable.
2.2 Net Profit Ratio
A commonly used profit measure is return on sales, other termed

profit margin. If company reports that it earned 6% last year, this
usually mean that its profit was 6% of sales.
Net Profit Margin= Net Profit after Interest and Tax × 100
Net Sale
Particulars 2011 2010 2009 2008

Net Profit after Tax 907,069,959 776,931,104 455,308,176 445,845,171

/Net Sale 14,114,654,216 10,618,085,875 8,647,863,371 6,140,220,980
*Net Profit Margin 6.42% 7.31% 5.26% 7.26%
* After multiplication with 100
Interpretation
TO
This ratio gives a measure of net income Rupees generated by each
Rupee of sales. While it is desirable for this ratio to be high, competitive
forces within an industry ,economic conditions ,use of debt financing ,and
operating characteristic such as high fixed costs will cause the net profit
margin to vary between and whining industries.
Comments
Profit is increasing with increase in total revenue, which shows that the
profitability of company is increasing, which is good sign. Share of profit
in total revenue is increasing, showing the favorable trend.
2.3 –Total Asset Turnover Ratio:

Total asset turnover measure the activity of the assets and
the ability of the firm to generate sales through the
use of the assets.
Total Assets Turnover= Net Sales
Average Total Assets
Particulars 2011 2010 2009 2008

Net Sale 14,114,654,216 10,618,085,875 8,647,863,371 −

/Average 6143323122 3,150,334,395 8,196,675,749 −
Total Assets
(W:1)
Total Assets Turnover 2.29% 3.37% 1.050% −
W: 1 Average Total Asset

Particulars 2011 2010 2009 2008
Opening Total Assets 5457693696 5457693696 8942975093 −

+Closing Total Assets 6828952548 8942975093 7450376404 −
Total 1.2286646×10¹º 6300668789 1.63933515×10¹º −
Total /2 6143323122 3,150,334,395 8,196,675,749 −
Comments
The company is using the assets not more then 4
percent and not less then 1% which shows that
company have good command on its assets
management regarding use as generating sales.
2.4 Return on Assets:
Return on assts measure the firm’s ability to utilize its
assets to create profit by comparing profits with the
assets that generate the profit.
Return on Assets = Net profit before Interest and tax
Average Total Assets
Particulars 2011 2010 2009 2008

Net profit before 1,049,000,245 882,693,096 537,218,077 −

Interest and tax
/ Average Total Assets 6143323122 3,150,334,395 8,196,675,749 −
Return on Assets 0.17% 0.28% 0.06% −
Comments
The ability of the interloop to generate the profit through using assets is
good and the company is keeping it very not more then 1%, but
company should use increase the percentage.
2.5 Operating Assets Turnover Ratio:
The ratio measures the ability of operating assets to
generate sales.
Operating Assets Turnover= Net Sale

Average Operating Assets

Particulars 2011 2010 2009 2008
Net Sale 14,114,654,216 10,618,085,875 8,647,863,371 −

/Average Operating 5608776284 2047687135 3,859,357,624 −
Assets(w:1)
Operating Assets Turnover 2.516% 5.185% 2.240% −
W: 1 Average Operating Assets

Operating Assets= property, plant and Equipment
Particulars 2011 2010 2009 2008
Opening operating 4,167,029,358 4,023719,183 3,694,996,065 −

Assets
+Closing operating 7,050,523,210 4,167,029,358 4,023,719,183 −
Assets
Total 1.12175257×1 4,569,401,276 771,871,5248 −
0¹º
Total /2 5608,766,284 2284700638 7718715248 −
Comments
The company is using not more then 6% and not less then 1%
of operating assets as compare with the sales, the company
policy against is good.
2.6 Sales to Fixed Assts
This ratio measure the firm’s ability to make productive use of its
property plant and equipment by generating sales this ratio may not be
meaningful because of old fixed assts or a labor-intensive industry. In
these cases, the ratio is substantially higher because of the low fixed
assts base.
TO
Sales to Fixed Assts = Net Sales
Average Net Fixed
Assets
Particulars 2011 2010 2009 2008

Net Sales 14,114,654,21 10,618,085,87 8,647,863,371 6,140,220,980

6 5
/Average Net 5608,766,284 2284700638 7718715248 −
Fixed Assets
(W1)
Sales to Fixed Assts 0.253% 4.65% 1.121% −
ratio
W1: Average Net Fixed Assets

Particulars 2011 2010 2009 2008
Opening Fixed Assets 4,167,029,358 4,023719,183 3,694,996,065 −

+Closing Fixed Assets 7,050,523,210 4,167,029,358 4,023,719,183 −
Total 1.12175257×1 4,569,401,276 771,871,5248 −
0¹º
Total /2 5608,766,284 2284700638 7718715248 −
Comments
The company is exercising sale to fixed assets ratio similarly as
operating assets ratio.
2.7 Return on Total Equity:
Return on total equity measure the return to both common and

preferred shareholders.
Return on total Equity = Net Profit before Tax
Average of Total Equity
Particulars 2011 2010 2009 2008

Net Profit before Tax 1,049,000,245 882,693,096 537,218,077 512,573,084
/Average of Total 3708264406 2,953,603,874 2,462,584,234 −
Equity (W1)
Return on total Equity 0.283% 0.299% 0.219% −
W1: Average of Total Equity
Particulars 2011 2010 2009 2008
Opening Capital 3,278,969,426 2,628,238,322 2,296,30,146 −
+Closing Capital 4,137,559,385 3,278,969,426 2,462,584,234 −
Total Capital 7,416,528,811 3,278,969,426 2,628,238,322 −
Total capital /2 3708264406 2,953,603,874 2,462,584,234 −
Average of Total 3708264406 2,953,603,874 2,462,584,234 −
Equity
Comments
The average of total equity of the firm is good and not more then 3%
2.8 Operating profit Ratio:

This ratio helps in determining the ability of the management in
running the business.
Operating profit Ratio = Operating profit ×100
Net Sales
Operating profit = Gross profit –operating
Exp.
Particulars 2011 2010 2009 2008
Operating profit (W1) 1027022877 -127092156 517984843 504433485
(W1)
/ Net Sales 14,114,654,21 10,618,085,87 8,647,863,371 6,140,220,980
6 5
Operating profit Ratio 0.072 -0.011 0.059 0.082
W1: Operating profit = Gross profit –operating Exp.

Particulars 2011 2010 2009 2008
Gross profit 2,971,531,255 2,376,092,846 1,824,014,304 1,204,369,955
― Operating Expenses 1,944,508,387 1,512,185,002 1,306,029,461 699,936,470
Operating profit 1027022877 -127092156 517984843 504433485
Comments
The ratio id related to the company profit with the comparison of the
net sales which show the positive trend in the t above analysis.
2.9 operating Ratio:
This ratio determine by comparing the cost of the goods sold and
other operating expenses with net sales.
Operating Ratio = cost of goods sold + operating Expenses ×100
Net Sales
Particulars 2011 2010 2009 2008
cost of goods sold 11,143,122,96 8,241,993,029 6,823,849,067 4,935,851,025

1
+ operating Expenses 1,944,508,378 1,512,185,002 1,306,029,461 699,936,470
TOTAL 1.308763134× 9754178031 8129878528 563578795
10¹º
/ Net Sales 14,114,654,216 10,618,085,875 8,647,863,371 6,140,220,980
Operating Ratio 107.84% 91.86% 94.01& 91.78%
Interpretation
The ratio is a test of the efficiency of the management is their
business operation. It is a mean of operating efficiency.
Comments
In normal conditions, the operating ratio should be low enough so as to
leave portion of the sale s sufficing to give a fair return to the investors.
Lower the operating ratio, the better is the positions because greater is
the profitability and management efficiency of the concern. The higher
the ratio, the less favorable is the situations, because there will be
smaller margin of profit available for the purchase of payment of
dividend and creation of reserves.
2.10 Expense ratio:
Expense ratios are calculated to ascertain the relationship that
exits between operating expenses and volume of sales.
1. Distribution cost
Distribution cost ratio = Distribution cost ×100
Net Sale
Particulars 2011 2010 2009 2008

Distribution cost 684,101,629 601,343,211 445,836,513 176,616,643

/ Net Sales 14,114,654,216 10,618,085,875 8,647,863,371 6,140,220,980
Distribution cost RATIO 4.84% 5.66% 5.15% 2.87%
2. Administration Expenses:
Administration Expenses ratio = Administration Expenses×100
Net Sale
Particulars 2011 2010 2009 2008
Administration 489,640,831 386,747,323 289,933,227 150,857,718

Expenses
/ Net Sales 14,114,654,216 10,618,085,875 8,647,863,371 6,140,220,980
Working Capital 3.46% 3.64% 3.35% 2.45%
3. Finance Cost
Finance Cost ratio = Finance Cost ×100
Net sale
Particulars 2011 2010 2009 2008

Finance Cost 542,907,391 421,645,086 530,481,698 345,484,578

/ Net Sales 14,114,654,216 10,618,085,875 8,647,863,371 6,140,220,980
Finance Cost ratio 0.38% 3.97% 6.13% 5.62%
3. TEST OF LONG –TERM SOLVENCY

Long Term Solvency or Leverage
Ratios
3.1 Debt- Equity Ratios:

(Also known as debt to net worth ratio) .the relationship
between borrowed funds and internal owner’s funds is
measure by Debt- Equity ratio.
Debt Equity Ratio = Total long term debts
Shareholder’s funds
Where long-term debts total excludes current liability
Shareholder’s Finds includes
Ordinary share capital
Credit balance of profit and loss account and free reserves etc;
Particulars 2011 2010 2009 2008

Total long term 3,199,352,182 830,672,445 119,4635,765 100,533,0509

(W:1)debts
/Shareholder’s funds 1,264,000,000 1,262,000,000 1,262,000,000 1,260,000,000
Working Capital 2.53% 0.65% 0.946% 0.797%
W: 1 Total long term debts
Particulars 2011 2010 2009 2008

Long term Financing 3,199,352,182 830,672,445 1062,660,834 929,404,033

Long term deposits − 131,974,931 100,533,0509
Total long term 3,199,352,182 830,672,445 119,4635,765 100,533,0509
debts
Comments
The company is not much more depend on its shareholders equity, the
ratio is not more then 1% instead of 2011
3.2 Debt to total funds or solvency Ratio:
Solvency is the term which is used to describe the financial position of any business which is capable
to meet outside obligations in full out of its own assets. So this ratio
establishes relationship between total liabilities and total assets.
Solvency Ratio = Total Liabilities

Total assets
Particulars 2011 2010 2009, 2008

Total Liabilities(W:1) 5824256681 4884160797 6344736771 5153446258
9,351,223,163 5,998,524,270 1,3488,782,54 92,776,936,96
Total assets 8
Solvency Ratio 1.05% 0.81% 0.47% 0.55%

Working: Total Liabilities
Particulars 2011 2010 2009 2008
Non- Current 3526966482 1114363473 1570379036 1562213670
Liabilities
+ Current Liabilities 5,8242,56,681 4884160797 4744357755 3591232588
Total Liabilities 5824256681 4884160797 6344736771 5153446258
Comments
The company solvency is in its good condition in only 2009 it increased
other wise the company exercising normally and in good solvency
condition.
3.3 Reserve to capital Ratio:
This ratio establishes relationship between reserves and
capital. Higher proportion of reserves shows financial
soundness (i) unit shall be able to meet future losses as and
when suufered, (ii) unit can grow, expand, diversify as it may
desire.
Reserve to capital Ratio = Reserve
Capital
Particulars 2011 2010 2009 2008

Reserve 2,873,559,385 2,016,969,426 1,366,238,322 1,036,930,146
/Capital 1,264,000,000 1,262,000,000 1,262,000,000 1,260,000,000
Reserve to capital 2.27% 1.598% 1.082% 0.822%

Ratio
Comments
The company reverse to capital ratio is not more the 3% which is
indication that the reveres are kept while considering the future
change in money value.
3.5Proprietary Ratio:
Proprietary ratio (also known s equity Ratio of net worth to total assets or
shareholders equity to total equity) Establishes relations between proprietor’s
funds to total resources of the unit. Where proprietor’s funds refer to
Equity share capital and Reserves, surplus and total resources refer to
total assets.
Proprietary Ratio = Total Equity
Total assets
W: 1 Total Equity
Particulars 2011 2010 2009 2008
Share Capital 1264,000,000 1262,000,000 1262,000,000 1260.000,000
+ Unappropriate profit 2,873,559,385 2,016969,426 1,366,238,322 1,036930146
Total 4137559385 3278969426 2628238322 2296930146
W: 2 Total Assets
Particulars 2011 2010 2009 2008

Share Capital 1264,000,000 1262,000,000 1262,000,000 1260.000,000
+ Unappropriate profit 2,873,559,385 2,016969,426 1,366,238,322 1,036930146
Total 4137559385 3278969426 2628238322 2296930146
Comments
This relationship highlights the fact as to what is the proportion of
proprietors and outsides in financing the total businesses.
3.6Debt /Equity Ratio:

The debt /equity ratio is another computation that determines the entity’s
long-term debt –paying ability.
Debt /Equity Ratio = Total Liabilities
Shareholders’ Equity
Particulars 2011 2010 2009 2008
Total Liabilities 9351,223,163 5,998,524,270 6344736771 5153446258

/Shareholders’ Equity 1.264.000,000 1,262,000,000 1,262,000,000 1,260,000,000
Debt /Equity Ratio 7.40% 4.760% 5.01% 4.08%
Comments
This computation compares the total debt with the total shareholders‟ equity. The
debt/equity ratio also helps determine how well creditors are protected in case of
insolvency. From the prospect of long-term debt-paying ability, the lower this ratio,
the better the company‟ debt positions as in case of the interloop Limited.
3.7Debt to Tangible Net Worth ratio:
The debt to tangible net worth ratio also determines the entity’s
long term debt-paying ability. This ratio also indicates how well
creditors are protected in case of the firm’s insolvency
Debt to Tangible Net Worth ratio = Total liabilities
Shareholders’ Equity – intangible Assets
Particulars 2011 2010 2009 2008

Total Liabilities 6344736771 5153446258 9351,223,163 5,998,524,270

1242517559 1239145748 1248968871 −
/(Shareholders’ Equity –
intangible Assets) (W:1)
Debt to Tangible 0.51% 4.15% 7.48% −

Net Worth ratio
W: 1 Shareholders’ Equity – intangible Assets

Particulars 2011 2010 2009 2008
Shareholders’ Equity 1,264,000,000 1,262,000,000 1.262.000,000 −

– intangible Assets 21,482,441 22,854,252 13,031,129 −
Total 1242517559 1239145748 1248968871 −
Comments
The debt to tangible net worth ratio is a more conservative ratio
than either the debt ratio or the debt/ equity ratio. It eliminates
intangible assets such as goodwill, trademarks, etc. so the ratio should
be more authentic; in 2009 company have sum ratio more then 5%.
3.8 FIXED Assets Ratio:

This ratio established the relationship between long term funds and
fixed assets. Since financial manger advocates that fixed assets
should be parched out of long –term funds only.
FIXED Assets Ratio = Net Fixed Assets
Long term funds
Particulars 2011 2010 2009 2008
Net fixed assets 7,050,523,210 4,167,029,358 4,023,7191,83 3694,996,056

/Long term funds(W:1) 327810147 57459767 118685070 117323723
FIXED Assets Ratio 21.50% 72.50% 33.90% 31.49%
W: 1 Long term funds

Particulars 2011 2010 2009 2008
Long term Investment 275,588,398 11,023,996 4,065,000 3,391,000

+Long term Loans 13,012,252 12,503,750 8,460,000 8,460,000
+Long term Deposits 39,209,497 33,932,021 106,160,070 105,472,723
Total Long term Funds 327810147 57459767 118685070 117323723
4. Investor Analysis:
4.1 Earning per share:

Earnings per share – the amount of income earned on a share of common stock
during an accounting period –applies only to common stock and to corporate
income statements. Nonpublic companies, because of cost-benefits considerations,
do not have to report earning per share. Fortunately, we do not need to compute
erasing per share. The Company is required to present it at the bottom of the
income statement.
Earning per share = Net profit After Tax for the year
No. of ordinary share
Particulars 2011 2010 2009 2008

Net profit After Tax for the 907,069,959 776,931,104 455,308,176 445,845,171
year
No. of ordinary share 126,202,192 126,000,000 126,039,452 126,000,000

4.2 Percentage of Earnings Retained:
Percentage of Earnings Retained = Net income – All Dividends

Net Income
Interpretation
The percentage of earnings retained is better for trend analysis if nonrecurring items
are removed. These indicators what is being retained of recurring earnings.
Particulars 2011 2010 2009 2008

Net income – All 856,589,959 650,731,104 329,308,176 −

Dividends (W:1)
/Net Income 907,069,959 776,931,104 455,308,176 −

Percentage of 0.94% 0.83% 0.723% −
Earnings Retained
W:1 Net income – All Dividends

Particulars 2011 2010 2009 2008
Net Income 907,069,959 776,931,104 455,308,176 −

– All Dividends 50480,000 126,200,000 126,000,000 −
Answer 856,589,959 650,731,104 329,308,176 −
4.3 Book Value per Share:

A figure frequently publish din annual reports is book value per share which
indicates the amount of stockholders‟ equity that relates to each share of
outstanding common stock.
Book value per Share/ Break up value = Equity
Number of share
Particulars 2011 2010 2009 2008

Total stockholders’ 1,264,000,000 1,262,000,000 1,262,000,000 1,260,000,000

Equity
/Number of share 126,202,192 126,000,000 126,039,452 126,000,000
Book value per Share 10.01 10.01 10.1 10.1
4.4 Income / Expense ratio

Income / Expense
Particulars 2011 2010 2009 2008

Income 907,069,959 776,931,104 455,308,176 445,845,171

/Expenses 1944508378 1512183002 1306029461 699936470
Income / Expense ratio 0.46% 0.51% 0.34% 0.63%
4.5 Net advances / Deposit

ratio= Advances
Deposit
Particulars 2011 2010 2009 2008

Advances 368,258,912 196,177,943 159,761,321 254,771,373
/ Deposit 18,641,340 82,063,218 8,660,108 17,403,788

Net advances / Deposit ratio 19.75% 2.39% 18.447% 14.63%
Comments
The investor of the company are limited so the analysis show that there are few ratio mange in this
categories ,overall analysis results are positive and good condition o f share capital.
5. Activity Ratios:
5.1 Inventory/stock turnover ratio:

The Inventory turnover is a measure of the number of times inventory
is sold or used in a time period such as a year. The equation for inventory
turnover equals the cost of goods sold divided by the average
inventory. Inventory turnover is also known as inventory turns, stock
turn, stock turns, turns, and stock turnover.
Particulars 2011 2010 2009 2008

Cost of Good sold 11,143,122,96 8,241,993,029 6,823,849,067 4,935,851,025

1
/Average inventory 327998778 267351742.5 202936945.5 −
(W:1)
Inventory Turn over 33.97% 3.07% 33.62% −
ratio
W: 1 Average inventory
particulars 2011 2010 2009 2008

Opening 295,033,986 239,669,499 166,204392 −

inventory(W:2)
+Opening inventory 360,963,570 295,033,986 239,669,499 −
Total 655997556 534703485 405873891 −
Total/2 327998778 267351742.5 202936945.5 −
W: 2 Inventories
particulars 2011 2010 2009 2008
Store and Spare 360,963,570 295,033,986 239,669,499 166,204392

+ Stock In Trade 2,564,800,749 2,335,076,521 2,711,840,721 1,888,948,644
Total 615764319 26301110507 2951510220 2055153036
Inventory Conversion period:
Fro better understanding it is of interest to know that on an average how many days
were taken to dispose off average inventory? It is known as inventory conversion
period.
Inventory Conversion period = Days in the year

Inventory turnover ratio
particulars 2011 2010 2009 2008
Days in the year 365 365 365 −

/inventory turnover ratio 33.97% 3.07% 33.62% −
Inventory conversion 10days 118days 10 days −
Period
Comments
A low turnover rate may point to overstocking obsolescence, or deficiencies in the

product line or marketing effort. However, in some instances a low rate may be appropriate,
such as where higher inventory levels occur in anticipation of rapidly rising prices or
shortages. A high turnover rate may indicate inadequate inventory levels, which may lead to
a loss in business.
5.2 Debtors / Receivables turnover ratio:
Receivables / Debtors turnover ratio is one of the key turnover ratios

used to analyze the performance of a business. This ratio throws light
on effectiveness of the business in utilizing its working capital blocked
in debtors. It also indicates the frequency of conversion of receivables
into cash in a given financial year. So, fundamentally, it comments on
the liquidity of the receivables of the business.
Formula for Debtor / Receivable Turnover Ratio:
Receivable Turnover Ratio = Annual credit (net) sales
Average accounts Receivable
Where accounts Receivable = Average Debtors + Average Bills Receivables

particulars 2011 2010 2009 2008
Net Sales 14,114,654,216 10,618,085,875 8,647,863,371 6,140,220,980
/ 1995393424 3341782487 1574451343 −
Average accounts
Receivable(W:1)
Receivable Turnover Ratio 7.07% 3.17% 5.49% −
W: 1 Average accounts Receivable
particulars 2011 2010 2009 2008

Average Trade Deters 1916447181 3144495049 1274179591

(W:2)
Average Other 789246243 197287438 300,271,751.5 −
Receivable(W:3)
Average accounts 1995393424 3341782487 1574451343 −
Receivable
W: 2 Average Trades Deters
particulars 2011 2010 2009 2008

Opening Trade Debts 1661,726,339 1482,768,710 1065,590472 3,638,056,616

+Closing Trade Debts 2,171,168,022 1661,726,339 1482,768,710 3591,232,588
Total /2 1916447181 3144495049 1274179591 46824028
W: 3 Average Other Receivable
particulars 2011 2010 2009 2008

Opening other Bills 247,386,823 147,188,053 226,677,725 −

receivable
+Opening other Bills 541,859,420 247,386,823 147,188,053 −
receivable
Total /2 789246243 197287438 300,271,751.5 −
Receivables turnover ratio has another variant i.e. Average Collection Period which gives a
time period in which debtors are converted into cash. Both the ratios indicate same thing but
in different terms. The former is expresses no. of times debtors are converted into cash in a
financial year whereas the latter gives no. of days or months in which the debtors are
converted into cash.
Formula for Average Collection Period:
365 days or 12 Months

Average Collection Period=
Debtor / Receivable Turnover Ratio
particulars 2011 2010 2009 2008
Days In a year 365 365 365 −

Receivable Turnover 7.07% 3.17% 5.49% −
Ratio
Average collection 51 days 115 days 66days −
period
Interpretation:
Receivables turnover ratio is an absolute figure normally between 2 to 6. A receivable

turnover ratio of 2 would give an average collection period of 6 Months (12 Months / 2) and
similarly 6 would give 2 Months (12 Months / 6). Meaning is quite clear. A ratio of 2
suggests that the debtor whom credit is extended today, the money is realized in cash after 2
months. Similarly, in case of 6, the money is realized after long 6 months.
For better trade credit management, it is obviously desirable to realize the money as soon as
possible because the money which is blocked in the debtors has a cost of interest attached to
it whose driver is „Time‟. If time to realize the money from debtors is more, the cost is also
higher and vice versa. Low debtor‟s turnover ratio directly insists on higher working capital
requirements and therefore higher interest cost which decreases profits of the firm.
Comments
What is desirable - A higher or a lower receivable turnover ratio?
The general rule of life i.e. „balance‟ is even applicable here. Neither too high, nor too low
of this ratio is advisable. Let‟s see the implications of both the ends.
Very Low Receivable / Debtor’s Turnover Ratio: This is easy to understand. Low receivable
turnover ratio means higher collection period. It gives an impression of wrong choice of
debtors or insufficient efforts to collect the cash.
Very High Receivable / Debtor’s Turnover Ratio: It would seems little contradictory to say
that even very high receivable turnover ratio is not good. Very high ratio hints of the very
tight credit policy of the firm.
5.3 Working capital turnover ratio:
Working capital turnover ratio indicates the velocity of the utilization of net working capital.
This ratio represents the number of times the working capital is turned over in the course of year and
is calculated as follows:
Working Capital Turnover Ratio =
Cost of Sales / Average Net Working Capital
particulars 2011 2010 2009 2008

Cost of Sales 11,143,122,961 8,241,993,029 6,823,849,067 −
/Average Net Working Capital 1396949796 94685749 45003002 −

(W:1)
Working Capital 7.97% 87.04% 151.63% −
W: 1 Average Net Working capital

particulars 2011 2010 2009 2008
Opening Net Working 146189522 43181976 46824028 −

capital
+Closing Net Working 2647710069 146189522 43181976 −
capital
Total 2793899591 189371498 90006004 −
Total/2 1396949796 94685749 45003002
Interpretation
The two components of the ratio are cost of sales and the net working capital. If the information about
cost of sales is not available the figure of sales may be taken as the numerator. Net working capital
is found by deduction from the total of the current assets the total of the current liabilities.
Comments
The working capital turnover ratio measures the efficiency with which the working capital is being used
by a firm. A high ratio indicates efficient utilization of working capital and a low ratio indicates
otherwise. But a very high working capital turnover ratio may also mean lack of sufficient working
capital which is not a good situation.
5.4 Fixed assets turnover ratio:

A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a
company's ability to generate net sales from fixed-asset investments - specifically property,
plant and equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows
that the company has been more effective in using the investment in fixed assets to generate
revenues.
The fixed-asset turnover ratio is calculated as:
particulars 2011 2010 2009 2008

Net Sales 14,114,654,216 10,618,085,875 8,647,863,371 6,140,220,980

Net fixed assets 7,050,523,210 4,167,029,358 4,023,7191,83 3694,996,056
Fixed Assets 2% 2.5% 2.14% 1.66%
Turnover ratio
Comments
This ratio is often used as a measure in manufacturing industries, where major purchases are made for
PP&E to help increase output. When companies make these large purchases, prudent investors watch
this ratio in following years to see how effective the investment in the fixed assets was.
PART 2 ANALYSIS OF MANAGEMENT PATTERNS
SWOT Analysis
SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the
Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business
venture.
It involves specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieve that objective. The technique is credited
to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data
from Fortune 500 companies.
Aim of SWOT Analysis In general
The aim of any SWOT analysis is to identify the key internal and external factors that are important to
achieving the objective. These come from within the company's unique value chain. SWOT analysis
groups key pieces of information into two main categories:
 Internal factors – The strengths and weaknesses internal to the organization.

 External factors – The opportunities and threats presented by the external
environment to the organization.
The internal factors may be viewed as strengths or weaknesses depending upon their impact on the
organization's objectives. What may represent strengths with respect to one objective may be
weaknesses for another objective. The factors may include all of the 4Ps; as well as personnel,
finance, manufacturing capabilities, and so on. The external factors may include macroeconomic
matters, technological change, legislation, and socio-cultural changes, as well as changes in the
marketplace or competitive position. The results are often presented in the form of a matrix.
How a SWOT analysis fits into a strategic situation analysis?
The following diagram shows how a SWOT analysis fits into a strategic situation analysis.
SWOT Analysis Framework
Environmental Scan
/ \
Internal Analysis External Analysis
/\ /\
Strengths Weaknesses Opportunities Threats
|
SWOT Matrix
SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are
internal factors.
SWOT Analysis of INTERLOOP LIMITED
Strength:
A firm's strengths are its resources and capabilities that can be used as a basis for developing a
competitive advantage.
The strength of the company is;
 Your specialist marketing expertise.
 A new, innovative product or service
 Location of your business
 Quality processes and procedures
 Any other aspect of your business that adds value to your product or service.
 patents
 strong brand names
 good reputation among customers

 cost advantages from proprietary know-how
 exclusive access to high grade natural resources
 favorable access to distribution networks
W eaknesses
The absence of certain strengths may be viewed as a weakness
 Lack of marketing expertise
 Undifferentiated products and service (i.e. In relation to your competitors)
 Location of your business
 Poor quality goods or services
 Damaged reputation
 lack of patent protection
 a weak brand name
 poor reputation among customers

 high cost structure
 lack of access to the best natural resources
 lack of access to key distribution channels
O pportunities
Opportunities and threats are external factors the external environmental analysis may reveal
certain new opportunities for profit and growth.
 A developing market such as the Internet.
 Mergers, joint ventures or strategic alliances
 Moving into new market segments that offer improved profits
 A new international market
 A market vacated by an ineffective competitor
 an unfulfilled customer need
 arrival of new technologies

 loosening of regulations
 removal of international trade barriers
T hreats
Changes in the external environmental also may present threats to the firm.
 shifts in consumer tastes away from the firm's products

 emergence of substitute products
 new regulations
 increased trade barriers
 A new competitor in your home market
 Price wars with competitors
 A competitor has a new, innovative product or service
 Competitors have superior access to channels of distribution
 Taxation is introduced on your product or service
The SWOT Matrix
To develop strategies that take into account the SWOT profile, a matrix of these factors can be
constructed. The SWOT matrix (also known as a TOWS Matrix) is shown below:
SWOT / TOWS Matrix
Strengths Weaknesses
Opportunities S-O strategies W-O strategies
Threats S-T strategies W-T strategies
 S-O strategies pursue opportunities that are a good fit to the company's strengths.
 W-O strategies overcome weaknesses to pursue opportunities.
 S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to
external threats.
 W-T strategies establish a defensive plan to prevent the firm's weaknesses from making it
highly susceptible to external threats.
SWOT Profile
A SWOT profile can be generated and used as the basis of goal setting, strategy formulation, and
implementation. The completed SWOT profile sometimes is given as follows:
Strengths Weaknesses
1. 1. ISO 9002 Certification.

1. 1. Increased employee
2. WRAP Certified turnover
3. Vertically integrated. 2. Centralized management
4. High quality products. system
3. High cost of production.

5. Excellent market image in the
local and international 4. Low production
capacity.
market.
5. De-motivated Staff.
6. Highly qualified management.
7. Adequate financial resources. 6. Non-Corporative culture.
8. Competitive advantage. 7. Insufficient benefits for
the employees.
9. Adopting information
8. Stereotype machinery
technology.
for processing.
10. Recruitment on merit.
Communicational gap among

11. Loyal customers. different departments.
12. Skilled Labor.
13. Broad and motivational
vision.
14. Back Track System
Opportunities Threats
1. 1. Can expand its division such as 1. 1. Entry of new competitors

entering in weaving sector also.
just like China & India.
2. Can introduce its own label in domestic
as well in international market 2. Buyer need and demand
3. Can capture new market segment. changes.
4. Full potential of entertaining the local 3. Political instability.
market.
4. Changing geopolitical
5. Can reduce the cost by proper
utilization of resources. situation.
6. End of quota restrictions by the end of 5. Change of government

year 2004.
policies.
Can hire well-educated and experienced staff
6. Low price offered by
competitor
7. Globalization.
When formulating strategy, the interaction of the quadrants in the SWOT profile becomes important.
PEST analysis
PEST analysis stands for "Political, Economic, Social,
and Technological analysis" and describes a
framework of macro-environmental factors used in
the environmental scanning component of strategic
management.
Some analysts added Legal and rearranged the
mnemonic to SLEPT;[1] inserting Environmental factors expanded it to PESTEL or PESTLE, which is

popular in the United Kingdom.[2] The model has recently been further extended to STEEPLE and
STEEPLED, adding Ethics and demographic factors. It is a part of the external analysis when
conducting a strategic analysis or doing market research, and gives an overview of the different
macro environmental factors that the company has to take into consideration.
It is a useful strategic tool for understanding market growth or decline, business position, potential
and direction for operations. The growing importance of environmental or ecological factors in the first
decade of the 21St century have given rise to green business and encouraged widespread use of an
updated version of the PEST framework. STEER analysis systematically considers Socio-cultural,
Technological, Economic, Ecological, and Regulatory factors.
Factor of PEST analysis

A scan of the external macro-environment in which the firm operates can be expressed in terms of the
following factors:
Environmental Scan
Political /\
Economic
External Analysis Internal Analysis
Social / \
Technological
Microenvironment Microenvironment
The acronym PEST (or sometimes | P.E.S.T.
rearranged as "STEP") is used to
describe a framework for the analysis of these macro environmental factors. A PEST analysis fits into
an overall environmental scan as shown in the following diagram:
P olitical Factors:
Political factors include government regulations and legal issues and define both formal and informal
rules under which the firm must operate.
The political arena has a huge influence upon the regulation of businesses, and the spending power of
consumers and other businesses, Interloop Limited is not much more affected by the political factors
but following are the political factors which are direct or indirectly influence the productivity and
efficiency on the firms are as follows;
 Employment laws
 Environmental regulations
 Trade restrictions and tariffs
 Political stability
 Environmental regulations and protection
 Tax policies
 International trade regulations
 restrictions Contract enforcement law
 Consumer protection Employment laws

 Safety regulations
 Competition regulation Government organization / attitude
Following measures are to consider also;
1. How stable is the political environment?
2. Will government policy influence laws that regulate or tax your business?
3. What is the government's position on marketing ethics?
4. What is the government's policy on the economy?
5. Does the government have a view on culture and religion?
6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others?
The political situation of Pakistan is not satisfactory and unstable. Rapid change in the Govt. and the
change of the policies of the previous govt. by the new govt. abruptly effect the Pakistan’s political
situation. Due to these entire factors the foreign investor hesitates to invest in Pakistan. Govt.
should device such policies that are beneficial for the local exporter as well as for the investors.
E conomic Factors:
Economic factors affect the purchasing power of potential customers and the Interloop Limited’s cost of
capital. Marketers need to consider the state of a trading economy in the short and long-terms. This is
especially true when planning for international marketing. Followings are the key Economic Factors for
the firm;
TO
 Economic growth
 Interest rates
 Exchange rates
 Inflation rate
 The level of inflation Employment level per capita.
 .Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on.
 Economic growth
 Interest rates & monetary policies
 Government spending Unemployment policy
 Taxation
 Exchange rates Inflation rates
 Stage of the business cycle Consumer confidence
 Interest rates
 The level of inflation Employment level per capita
 Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and so on
The economic condition of Pakistan is not suitable for investment. Market growth rate is very low and
new investors hesitate to invest. Increasing inflation rate due to heavy loan make the business
environment strict. Actually increase in inflation rate leads to high cost of production so our country
products sell out at a high price but with low margin.
S ocial Factors
Social factors include the demographic and cultural aspects of the external macro environment. These
factors affect customer needs and the size of potential markets. The social and cultural influences on
business vary from country to country. It is very important that such factors are considered. In case
of Interloop flowing factors could be consider
– Health consciousness
– Population growth rate

– Age distribution
– Career attitudes
– Emphasis on safety
– Income distribution Demographics
– Population growth rates
– Age distribution Labor
– Social mobility
– Lifestyle changes Work
– Career and leisure attitudes
– Entrepreneurial spirit Education
– Fashion, hypes Health consciousness & welfare, feelings on safety
– Living conditions (Changes in) Mobile Technology
Followings measures are to taken;
– .What is the dominant religion?
– What are attitudes to foreign products and services?
– Does language impact upon the diffusion of products onto markets?
– How much time do consumers have for leisure?
– What are the roles of men and women within society?
– How long are the population living? Are the older generations wealthy?
– Does the population have a strong/weak opinion on green issues?
The change in the lifestyle of the people affects the growing demand of the Interloop
products. The change in the lifestyle and needs in different demographics also affect the
demand of the customers.
Due to all these changes Interloop is performing excellent for the excellence of organization as well as
for the customer.
T ECHNOLOGICAL FACTORS:
Technology is vital for competitive advantage, and is a major driver of globalization. Technological
factors can lower barriers to entry, reduce minimum efficient production levels, and influence
outsourcing decisions. Some technological factors for the interloop Limited include:
 R&D activity
 Automation
 Technology incentives
 Rate of technological change
 (Changes in) Internet hangs
 (Changes in)Mobile Technology
 Information Technology
 Energy use and costs Life cycle and Speed of technological obsolescence
 Rate of technology transfer new inventions and development industry focus on
technological effort Government research spending.
Following question are important for the technology measures of Interloop Limited
 Does technology allow for products and services to be made more cheaply and to a better
standard of quality?
 Do the technologies offer consumers and businesses more innovative products and services
such as Internet banking, new generation mobile telephones, etc?
 How is distribution changed by new technologies e.g. books via the Internet, flight
tickets, auctions, etc?
 Does technology offer companies a new way to communicate with consumers
e.g. banners, Customer Relationship Management (CRM), etc?
Technological advancement in all the sectors of the country has changed the entire socio-
economic environment. Especially textile sector has incorporated technological development and
advancement in their organizations.
PEST factors play an important role in the

value creation opportunities of a strategy.
However they are usually beyond the
control of the corporation and must
normally be considered as either threats or
opportunities. Remember macro-
economical factors can differ per continent,
country or even region, so normally a
PEST analysis should be performed per country. Now the PEST analysis is moving and known as
PESTEL analysis.
Part IV summing up
FINDINGS & RECOMMENDATIONS
Interloop Limited never compromise on quality, and always provide in time delivery, due to this
production is increase day by day, production is not increased in quantity, but also with quality. In
Interloop Limited right person is at right place. Every person respect each other senior respect his
juniors. There is cooperative environment. No doubt Interloop Limited is employee oriented
organization and its values are to share and care its human capital in every perspective. Nothing is
perfect in this universe and opportunity of improvement always exists.
At last I give some suggestions to Interloop Limited’s staff of different department with the hoping that
these suggestions also give major contribution in the development of this organization.
EHS & PI DEPARTMENT
Both the departments are working as should they, but following are some recommendations are
1. EHS department should arrange the seminar inside the organizations to give awareness to
the employees about hoe they can manage there health inside and out side the organization,
because the worker spend more time in there home then factory.
2. PI department works on ergonomics, but the work force is not aware of term what does it
mean, so the training of the employees is very necessary.
3. EHS department should give SOP’s of all the relevant safety instruction of the job and
jobs relater hazardous in all deportments to reduce the safety risks.

FINDINGS & RECOMMENDATIONS Page 142
4. The condition of the ambulance is very b pity and not fit for the emergency conditions,
should be replaced with good soon as possible.
5. ergonomics ,safety and health are alternatives of each other should be first focus of
the departments
HR & D
Hr dept is the backbone of any organization. It plays role like strategic business partner and define
future human capital dimension in order to meet company strategic objective.
1. I was surprised to see that all work is done in Excel sheet and there is no system which tells us
about how many applications have applied and from which university.
2. We hire candidate who have rich experience in their field, but we offer not attractive designation,
so because many executive are not comfortable with current designation, my idea is to offer proper
designation.
3. Staffing staff is busy to search required CV’s manually and there is no proper record.
4. We should appoint right person with relevant education, but in company practice people are hired who have
bit knowledge about this field.
5. When people apply against any vacancy, after CV’s collecting HR-dept sent all these CV’s to
concerned dept for short listing, it is not fair, actually that dept add their own CV’s and only
those people are short listed for whom concerned dept categorized. In this regard Hr dept should
short listed CV’s after screening on defined criteria.
6. There is influence from every dept directly/indirectly about their concerned person either he/she
has been short listed or not. We should minimize their influence.
7. After orientation phase, there is no follow up and we should arrange meeting with new joiner to
discuss his issues during orientation tenure and take report during defined period.
8. There is no training and development policy, company should develop.

9. All form like OD, Leave application form, shift change and others related form are scattered in
time office. My idea is to place all form in racks and mention on rack about these forms, in this
way every body will take form easily and time of time keeper will be saved.
10. All executive are busy in there day to day matters and go out door for company official visit.
They have short time to check there absent status, in this regard my idea is to add duty of
timekeeper to inform every executive about his absentee before the month end on telephone, in
this way we will add our services by offering this services.
11. Our HR Management is busy to perform day to day matters involved in every matter at low level
by wasting their precious time, in this sense my idea is to delegate authority and check their
performance.
ADMIN DEPARTMENT
1. Mess menu is very crispy and there is no Varity in mess menu, my suggestion is to review
and add new dishes and add more vegetable with salad.
2. Near executive basin there is no liquid soap only piece of soap is available, this creates
negative impression, and my idea is to place liquid soap.
3. On our mess we should add pictures with message say name of Allah before taking meal.
4. In company buss, staff is busy to discuss political matters and disturb others, in this regard we
admin dept should deliver clear instruction not to discuss political matters inside buss.
5. After taking lunch, we throw bone and others dust on table or on floor, my idea is to
place dust bin near each table, in this way table will be clean and everybody would like to
place bone inside dust bin.
6. There should be table tennis table, news paper and color TV inside mess premises, in this
way employee will feel healthy and will raise cooperation and remove hesitation among top
to bottom staff.
7. On upcoming on stairs, my idea is to add ALLAH -HO-Akbar and Subhan ALLAH poster, in
this way employee will remember ALLAH and get feelings.
8. When any visitor comes in mill for some official purpose, there is no sign board inside mill
which indicate in which dimension he has to move, my idea is to place sign board on which
there is no clear indication about mills, offices and others area.
9. When people comes to take test, there is no clear indication about Interloop Limited on road,
although we have placed sign board on road, but most of the time there is rush on road and
truck are placed on road near sign board,
10. My suggestion is to place separate board with red color which indicate clear dimension.
11. My idea is to place Interloop Limited logo on our new corporate building.
12. There is no similarity between mess menu and services as compared to other division, we
should prepare same menu and same dishes by coordinating, and in this way we can
save company cost and add value.
13. There is rich culture of tea in mills, we should create awareness session that tea is not healthy
for health and arrange doctor session for sugar test and awareness.
14. Worker uniform is nice, but we cannot distinguish who is that person and belong from
which dept, my idea is to print dept name on front or back of uniform.
15. Employees wear there employment card on different side on their front side, some have
placed on button, collar, etc and create very odd impression, my idea is to introduce ribbon
with Interloop Limited logo and name, in this way there will be similarity among employee.
Merchandising
 Merchandiser should follow up the order from beginning to end and physically check the order
status at every stage.
 Merchandiser also checks the work order that it is according to the customer order sheet.
PPC
 PPC should be very careful in making work order, because work order is backbone of order
status
 In case of repeat order customer order sheet should check before making the work order.
Toe Closing
 Supervisor should carefully check the stitching process, not only depend on aster, in this
way quality will be improved.
Processing
Processing department should be very careful in shade, more qualified person should be appointed
in processing. If processing department control the shade variation problem quality will be improved
and time can be save in packing and pressing department, which is waste due to shade variation.
Packing
1. Target
We can get more production if we give the target to packers, in this way production will be
increased with quality not only with quantity.
2. Incentive
Incentive should be given to those packers who complete the target at time.
P&S DEPARTMENT
Implementing and managing strategic relationship with key supplier, ensuring performance to schedule
of all bought out material and services and achieving cost saving target.
 Conference & seminars

 Vacation training & Development
 E- Learning
 Confident communication
 Profit price and cost Analysis
FINANCE DEPARTMENT
1) Our aim to make Interloop Limited world class organization and doing lot of things to achieve,
but office environment specially computer in front of whole team create image like clerk, my
suggestion is to introduce LCD at some level in this way we can change existing IT structure.
2) Salary oriented staff in increasing and there performance is not up to mark.

3) Most of our staff is performing clerical duties and there is no innovation and process
improvement.
4) Company should provide training to its staff so that they can meet their job duties more
efficiently and effectively.
5) There is no vision and mission statement, I was astonished, for this purpose we should
design all these things and Job Description of whole mills and update in system.
6) Executive staffing office creates image like government office, where files are scattered and
there is no arrangement of files, documents and there is no attractive thing in office where
new comer take positive impression on hi face. For this purpose we should re arrange office
internal environment and make cabin for file arrangement.
7) There is no defined Job Description of any body what to do, all job description should
be online and add/delete task after some defined period.
8) Finance office presents image like WAPDA house, where file are scattered and there is
need to arrange file in proper form.
OD DEPARTMENT
Being a leading department it should play a role to enhance the internal and external environment
and aspect to generating the environment. For this purpose OD department should to issue the
employees ideas book every year to get new ideas in different departs and jobs, so and
motivations of the employees and improvement of the company become possible.
CONCLUSION
Interloop Limited is no doubt a miracle in the hosiery concerns special working environment, is simply
the best in Faisalabad. Interloop Limited is a complete vertical unit with all processes ranging from
yarn-spinning to packaging and it employs a centralized computerized system which handles all
aspects of operations. The company ensures quickest possible turnaround of shipments with strict
compliance to their customers’ specifications.
In pursuance of their goal to achieve and maintain good quality, Interloop Limited has now set up a
high-tech spinning unit that will ensure finest quality yarn made from the best available natural cotton
they also add Hosiery Division –III for the quantity enhancement . This project will enhance the value
of money for our customers by offering rates that are even more competitive to our clients.
The company’s infrastructure is good. Offices are fully furnished.

The company is centrally air-conditioned. The company is working in “Papers less” environment.
Computerized bar coding and back tracking system are there.
Company has good warehousing capacity for fabrics and Scoks. Customer portfolio of the company is
very broad. World leaders in sports socks are working with Interloop Limited.
Company has separate marketing department. CEO and Marketing Manager of the company perform
marketing functions collectively.
Company is engaged in merchandising and its merchandising department is very efficient for taking
orders and fulfilling them accordingly. Company’s decision making is centralized. All major decisions
are made by higher management and implemented by lower management.
Now Company is giving preference to its personals separate personnel department is established and
a ladies wing is also incorporated.
Financially the company is performing well. Its sales are increasing and its profits are rapidly
growing Simply we can say that Interloop Hosiery Division is performing well.
Bibliography References
BOOKS
M. Arif, Sohail Afzal, Accounting: an intuitive approach, Pakistan: Lahore
M.A Ghani, Advance Accounts, New Fine printing Press, Lahore: Pakistan, January, 1971(1996)
Javed Akhter, Fundamental & Financial Accounting, 10-Railway Road: Lahore, 2009
Robeert F. Meigs,Jan R. Williams,Susan F. Haka and Mark S: Bettner. Accounting: the basic for
the business Decisions. United States of America: New York, 1962.
Charles H. Gibson, Financial Statement Analysis: using Financial Accounting Information. The
University of TOLEDO: 7th EDITION.
Courtland L. Bovee,Johan V. Thill, Marian Burk Wood And George p. Dovel, Management.
International Edition
James C. Van Horne, John M. Wachowicz,and JR , fundamentals of Financial Management :First

Indian Reprint,2001
Robert N. Lussier,Minas Poulos, Organisational Behavior: A skill- building approach

4 Barcoo Street, Roseville NSW 2069: Australia, 2001
PETER M. BERGEVIN, Financial Statement Analysis: an Integrated Approach, (Upper Saddle

River, NJ: Prentice Hall, 2002, pp. xxiv, 598)
ARTICLES
Robert Follett Introduction to How to Keep Score in Business: Accounting and Financial Analysis for the
Non- Accountant,
Balmer, John M. T"Corporate Branding and Connoisseurship.'" Journal of General Management 21, no. I
(autumn 1995): 24-27
The Beginner's Guide to Understanding, Analyzing, & Reading Financial
Statements By Joshua Kennon,

TO
Page 149
References
Davis, L., "Rights Replacing Needs" in Hauritz, M., Justice for People with Disabilities, Sydney: Federation
Press, 1998
THE INTERNET SOURCES

“Human resources”, http:// www.interloop.com.pk (collected 20/01/2012)
“Our clients”‟ http:// www.interloop.com.pk (collected 25/01/2012)
“Plant tour “http:// www.interloop.com.pk (collected 29/01/2012)
“Product showroom” http:// www.interloop.com.pk (collected 23/01/2012)
“Contact us „http:// www.interloop.com.pk (collected 22/02/2012)
“CSR „http:// www.interloop.com.pk (collected 13/09/2011)
“awards_and_honours‟ http:// www.interloop.com.pk (collected 17/10/2011)
„Competitors list „ http:/ www.usafishinc.com (collected 17/10/2011)
“Indian industry socks “ www .mumbai socks.com
„business volume” http:// www.interloop.com.pk (collected 20/02/2012)
“Company profile” http:// www.interloop.com.pk (collected 20/02/2012)
Newsletters
“CEO message “In the Loop: Ausgest /September, page n0.3
“Interloop flood relief activities-rehabilitation phase” In The loop: July /august2011, page n0.7
“OHSE award 2010”, in the loop: July /august, page 2011 n0.8
“Acquisition of Kohinoor Hosiery”, in the loop: July /august2011, page n0.9
“Introduction of Barin ULmann ILNA”, in the loop: July /august2011page n0.11
“The sixth Business planning Workshop 2011”, in the loop: Jan. /Feb.2011, page
n0.4 “In the spotlight finaicne department” In The loop: Jan. /Feb.2011, page
n0.18 “Message from Director Finance interlop” In The loop: November2010, page
TO
Page 150
References
n0.3

TO
Page 150
References

Internship Project On Interloop Limited

Uploaded by

Copyright:

Available Formats

You might also like

Internship Project On Interloop Limited

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Internship Project On Interloop Limited

Uploaded by

Copyright:

Available Formats

INTERLOOP

THE LARGEST MANUFACTURER

Submitted To: Mohi-ud-Din Islamic University Nerian sharif, Ajk in

June 22, 2012

 Mrs. Javeria Ali (Assistant Manager QA. Lab)

SUBMITTED MOHI-UD DIN ISLAMIC UNIVERSITY

Factory (Socks Division I):

Mills (Spinning Division):

Factory (Socks Division II):

Telephone No. + 92-41-4360400

For Yarn Mr. Tariq Rashid

For Hosiery Mr. Muhammad Shahzad

us, and the challenges it brings, as well as recognizing and

 To achieve the higher satisfaction level of the external customer and

 To be a business house of customers of first class.

 To produce innovative, relevant and cost effective product by

 To earn profits by achieving the optimal level of production by

 To provide ideal working environment to employees and to take care

We are of benefits to community we operate in We acquire, nature and reward talent

WE accept responsibility We have respect for environment

We are accountable in our matters We have respect for the people

We aggressively face competition

We encourage deployment of latest technology

We arrive at decisions through collective wisdom

We meet or exceed customer expectations in quality of product & services

2.1 History of Interloop Limited

This is the result of true leadership as in coo,s Blog in may- 07-2011

2.2 Nature of the Organization

2.3 STATUS OF BUSINESS

Director Business improvement

Manager Supplies Manager Admin Manger ENGEERI Manager QA

Manger PPC Manger Finance Manager EHS

Manager Operation Manager I&E Manager OD

Chief Operating Officer

Comments on Organizational structure of interloop Limited :

Interloop organizational structure is simple and very much more chances to

MIDDLE LEVEL MANAGEMENT

2.6 Business volume

Socks Division Spinning Division Yarn Dyeing

3000 computerized 20,400 spindles 6 dyeing machines

100,000 dozens/day 61,700 pounds/day 11,000 pounds/day

2.7 Number of Employees

Permanent Employees 7266

ISO 9001:2008 EPA Certificates ISO 14001:2004

OKEOTEX.100 OHSAS 18001 Registration certificate HDII

SA 8000(2008) HDII EFP Certification WRAP

2.9 Policies of interloop Limited

2. Company Quality policy

“MAINTENANCE AND IMPROVEMENT IN THE QUALITY OF OUR PRODUCTS (SOCKS)

“We at interloop Limited are committed to provide a better working environment to

 Labor law of Pakistan

4. Policy of Environment Health and Safety

This policy covers Hosiery Divisions of company

 It will arrange to import proper training to its workforce for implementing

 A continues us review of EHS issues will be ensured through internal audits

CORPORATE OBJECTIVES AND COMPANY IN GENRAL

Interloop believes in playing an active role in social development by providing