CHAPTER NO.

01

ORGANIZATION INTRODUCTION

Organization Name Klash private limited.

Year of Foundation 1999
Authorized Capital Rs.20 Million
National Tax Number 1454692-2
General Sales Tax Number 08-91-9991-230-73
Business Nature Export
Organization/Company Type Private limited.
Principal Activity Manufacturing
Major Product(s)/Service(s) Garments
Bi Product(s)/Service(s) Wastage of garments
Mailing Address info@klash pvt.com
Phone No. 041-111-552-741
Fax +92-41-7867829
Website www.klash pvt.com
E-Mail info@klashpvt.com
Facebook http://www.facebook.com/klashgroup

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1.1 Introduction of the Textile Industry:

Over the years, Pakistan is said to be the single crop economy i.e. cotton and textile that
claims the lion's share in terms of the contribution in the national economy of Pakistan.
Despite efforts to bring in diversification in country's overall economic get-up the textile
sector continues to be the most important segment of the national economy. Its large share in
the economy, in terms of GDP, exports, employment, foreign exchange earnings, investment
and revenue generation altogether placed the textile industry as the single largest
determinant of the economic growth of the country. During the year exports were controlled
from falling and significant investment was made in value-added expansion. Besides fall out
of the events of September 11, the implementation of WTO's agreement, various bilateral
agreements have been signed and implemented.

1.2 Klash Pvt Limited:

Klash pvt ltd. Is manufacturing company. It is a knitting company. Klash is vertical combo
of business process unit. In 1999, Mr Ashfaq takes the first professional step in the life of his
father who is the founder of Klash group. Mr. Ashfaq and Mr.Shafiq helped his father by the
formation of an industrial co-operative bank in 1999 along with the developments of Red
Cresent trust hospital. Govt High School Dhanola and training school were established in
2016. The major achievement by this group was KLASH (pvt), KLASH 2, KLASH 3,
KLASH 4, KLASH 5,KUKRI which was established in 2007 with 1 dyeing mills and 6
more unit of KLASH Has the technology with expertise, products with knowledge and most
importantly the right mindset to achieve total customer satisfaction.
*The KLASH Group* Mian Muhammad Ashfaq the captain of this splendid ship having
around 30 on board companies. KLASH Group of comprises of textiles This is story of
success through sheer hard work and an undaunted spirit of enterprise. Beginning with a
CMT, he soon branched out textiles. After almost two decades a century of undaunted
success, KLASH group is among the leading business houses of the country.

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1.3 Location:

 Head Office

The Head office of KLASH Group is situated in UK. All major decisions are made under the
guidance of the CEO MIAN MUHAMMAD ASHFAQ, in the main office. Then the strategy
is given to the higher management of the unit, for the implementation.

 Faisalabad Office

Faisalabad office is situated on Millat Road. It is also the Klash production area. This office
is run by CEO, all the decisions regarding production is being held by this unit.

1.4 Vision Statement:

The vision of KLASH pvt. Ltd textile industry is to transform itself into a sustainable,
technologically advanced, and socially responsible sector. By embracing innovation,
transparency, and collaboration, it strives to meet the evolving needs and expectations of
consumers while minimizing its environmental impact and contributing positively to society.
Moreover:
 Sustainability and Circular Economy
 Technological Advancements
 Ethical and Transparent Supply Chains
 Collaborative Innovation and Partnerships.

1.5 Mission Statement:

we value quality in our products and in our relationships with customers and suppliers. We
consider our employees our more critical resources.

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1.6 Nature of Klash:

Klash (pvt) limited is leading organization in knit wear industry. To produce quality good
and that too on time, you need a good production facility, capable of taking on any challenge
thrown at you. In this regard, klash exports possess the best infrastructure that has the ability
and potential to give you quality products. Klash manufacturing process has been vertically
integrated to facilitate all the processes involved in garment manufacturing under one roof.
All machines are the latest available in the market, and whenever required, klash export has
never shied away from purchasing the most modern equipment’s. All our divisions are
equipped with the latest equipment’s to maintain the high quality standards that we have set
for ourselves. The basic process done at klash is:
 Knitting
 Dyeing
 Cutting
 Stitching
 Embroidery

1.7 Business Volume:

Business volume in terms of company’s Sale for the last Three years is as under:

BUSINESS VLOUME 2021 2020 2019

SALES 1,051,265,749 837,392,598 625,031,299

1.8 No. of Employees:

Total number of employees in the Klash (Pvt) Ltd. From year 2019 to 2021 is as under.

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Staff Strength

PARTICULARS 2022 2021 2020

PERMANENT 6000 5134 4556
DAILY WAGES (PIECE RATE) 7000 6866 6444
TOTAL NO OF EMPLOYEE 13000 12000 11000

1.9 The chain of command

The chain of command shows that the orders are being taken from the top management and
its being circulated to the lower management and further decisions are to be made by the
department heads so this shows that klash works as a combination of centralized setup and
decentralization.

1.10 Mode of communication within the company

The company’s daily functions and communication mediums include the extensive usage of
e-mails and telephone extension. An e-mail is must be it any day to day function of the
departments. The e-mails are being sent to the lower management from the higher
management and also there are formal meetings in the departments related to any issue or
new project.

1.11 Culture of the company

The culture of the company is very motivating as I have observed in the Accounts
department they not only work as a team but they appreciate the efforts and praise all the
good work by being humble and supporting each other by helping the fellow employees,
klash has this welcoming attitude towards the employees and the internees which boosts up
the confidence level and helps the employee or the internee to learn more.

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 CHAPTER NO. 02

ORGANIZATION STRUCTURE/HIERARCHY

2.1 Organizational Hierarchy/Chart:

Director

General Manager

HR Finance
Marketing

imp & Exp Purchase Production IT PPC

Merchandising Accounting

Fabrication Packing
Assembling

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2.2 Introduction of Departments:

Departmentalization (or departmentalization) refers to the process of grouping activities into

departments. Division of labor creates specialists who need coordination. This coordination
is facilitated by grouping specialists together in departments.

2.2.1 Human Resource Department:

KLASH is one of the leading manufacturing units in Pakistan that has a large number of
employees. Keeping in view the present trend in the field of Management as well as the
requirement of the quality certification organization KLASH separately developed its human
resource department which was working under admin department earlier. The Management
at KLASH believes that it is very important for every organization to develop a world class
Human Resource department to harness the skills and knowledge of their people to achieve
excellence in product, procedures and quality systems. The Human Resource Department at
KLASH has been formed at the end of 2006 to accomplish international quality standards at
every level. The department is providing support to top level management in recruitment,
selection, compensation as well as in the field of Training and Development. The functions
which Human Resource department currently perform at KLASH are
 Recruitment & Selection
 Compensation Management
 Training and Development
 Performance Appraisal

As the major time period I have passed in KLASH was in human resource department so I
have a lot of knowledge about this particular department of the company and in this report
will give you a more detail look of this department as compared to the other departments. In
broader view human resource department has not most modern practices which support this
department in order to get its real objective. Management usually took this department as an
expense and cost on the organization. In order to cope with this expense department, a lot of
other responsibilities have also been allocated to this department which is actually not the
responsibility of this department but the incumbents of HRD must be obeyed. For example a

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HR manager has nothing to do with payroll but at KLASH HRD and pay roll work cross
functionally and provide support to the pay roll department as to decrease the burden from
the payroll department. The training (in house or not) is being seen by the human resource
department in order to train the employees according to the changing environment in the
textile sectors, the soft skills training courses are encouraged in the company as it enhances
the sales and the marketing relating to the strategic management undertaking for enlarged
sales volumes

2.2.2 Administration Department:

Consists of two offices one in Lahore and one in Karachi it is responsible to provide all the
information to the departments in a systematic way by keeping an effective communication
process in order to keep all the departments aligned in terms of operating the business at its
very best..

2.2.2.1 Functions Of The Administration Department:

1- To provide the administrative help in managing the

information. 2- The payrolls for the human resources.

3- Effectively communicating and attainment of goals.

4- To ensure that all the departments are working to their maximum capability.

2.2.3 Marketing Department:

The marketing department must act as a guide and lead the company's other departments in
developing, producing, fulfilling, and servicing products or services for their customers.
Communication is vital. The marketing department typically has a better understanding of
the market and customer needs, but should not act independently of product development or
customer service. Marketing should be involved, and there should be a meeting of the minds,
whenever discussions are held regarding new product development or any customer-related
function of the company. Reinforce the idea among your employees that marketing is a team

8
effort. Individuals may have their own goals and priorities, but if they don't also consider the
goals and greater need of the company, they may hinder efforts and make you’re carefully
planned marketing efforts fail. In short, the marketing department studies the market and the
customers, determines the best way to reach those customers, and works with the rest of the
company to help determine the new product needs of the market and represent the company
in a consistent voice.

2.2.3.1 Structure of Marketing Department:

Marketing Structure of klash

Marketing Manager
Director Manager

Research &
Development Manager exports
Marketing
Assistant

Exports officer

2.2.3.2 Functions

1. The marketing department monitors the customers.

2. It also has the duty to manage customer relationships.

3. The processing of orders is done by this department.

4. This department researches about the new markets, in order to increase its sales.

5. The forecasting of sales is also done by this department.

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6. Planning of the sales.

7. Analyzing the sales is being done by marketing department as well.

8. They have to analyze the price in order to set the strategies and developing them

further.

9. The development of the product and package designing is being fulfilled by this

department.

2.2.4 Export Department:

Export department in KLASH is quite energetic department. A large number of

responsibilities and duties are there which export department have to perform. Purchase
order is received from buyer through the merchandizing department. A fax message is send
to buying house/buyer for opening L/C. Expected Audit date/time received and go-head is
taken from concerned unit (manager) to carry shipment. Arrangements are made for the
transportation to move the consignment by the road/train/air as per plan. Funds arrangement
for the transportation and custom clearance charges are also been carried out by the export
department at KLASH. Cargo lifting advice is fixed to custom clearing agent/ Forwarder/
Transportation. Forwarder / clearing agent make arrangements for the custom clearance and
booking of the space at earliest vessel. The role of the Export manager is to work closely
with the merchandising department HOD to build strong business relationships with current
and also prospective export customers.
Presently KLASH export almost 5 countries, with best practice only being operational in a
couple of countries, where full marketing support is in place and clear evidence exists of
increasing brand awareness and strong growth is building. Many new territories are
approaching KLASH to take on the brand, so the role is to identify the best entry strategy
and partner across each country, and then to ensure a clear launch plan is in place, which
takes account of local market conditions.

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2.2.5 Production Planning and Control Department

Production Planning and Control (PPC) is the nervous system of the organization and its
basic task is to receive information from the merchandising department and link it to the
production. It involves the Pre-Production Analysis to ensure quality and reproducibility.
Monitoring is done for the whole production process and in this we check out the planning
implementation. If the planning is failed, re-planning is done for that. Off- the- track and on
the- track planning is also done by the PPC. PPC works in collaborates with R&D
department and also get the information from the cutting unit. In this Quality Plan
specification, quality, width, weight, dyes, gauges and counts are mentioned. PPC receive
Fabric Consumption Patterns from the Cutting department and plans that how much fabric
must be used.

2.2.6 Fabric Department:

Klash fabric department is playing an important role. Fabric department is divided into three
more related departments is outlined below:
 Fabric Department
 Yarn Department
 Knitting Department
 Dyeing Department

2.2.7 Stitching Department:

Stitching department is one of the well-equipped machines department in the field of the
Textile in Pakistan that’s why there are most of the loyal customers of the KLASH from all
over the world specially George, Tesco and American Eagle. These are the major have chain
of stores around the world. 724 helpers are daily wages working as quality checker in the
whole stitching department 2500 approximately stitching machines in the whole stitching
unit. Every machine operator has a unique no to find out the any type of the fault. The cost
minimization, Minimize wastage, Minimize wastage, Minimize wastage, Best utilization of
time and Quality control by line checker
Types of stitching machines
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 Lock Stitch
 Chain Stitch
 Twin Needle
 Work Station
 Blind Stitch
 Over Lock

2.2.8 Printing Department:

The Printing department of KLASH comprises of three rotaries, i.e. Reggianni, Zimmer &
Stork. Along with these three rotaries, the printing department has 15 production tables to
Fulfill the production need of the customers of KLASH. There is a mini sampling machine
for the sampling section to facilitate their work. The specification & general points about
these rotaries are as under:

 Reggianni Machine
 Zimmer Machine
 Stork Machine

The Printing department of KLASH is working at its best & producing really good stuff.
After the printing from the rotaries, the route of the fabric depends on the dye class. If the
reactive dyes have been used, then the fabric will be taken to first of all Ager Machine &
then Goller Soaper Washing, then to Stenter finish & finally to the calendar. On the other
hand the fabric treated with pigment dye is taken to the curing machine & from there it
is taken to the calendar after the required stenter finish. Now in the following line, we’ll see
the specifications of the Curing & Ager Machines:

 Curing Machine
 Ager & Curing Machine

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2.2.9 Finance Department:

Finance department is major department of every company. In klash finance department

hierarchy is divided among Accountant and assistants. It is responsible for all the daily
functions related to the financing and managing the firm’s liquidity and justifying the
financial risks of the company they also seek the long and short term financing in any of the
projects of the company.

2.2.9.1 Hierarchal Structure of Finance Department:

Finance Manager
Ass. Finance Manager

Accountant Accountant

Ass. Accountant Ass. Accountant

2.2.10 Accounting Department operation:

Followings are the accounting operation used by the accounts department

 Filing
 General ledger
 Billing
 Accounts Payable
 Inventory

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 Costing
 Cash management
 Budgeting
 Financial statements

2.2.10.4 Functions of the Accounts Department:

Accounting system used by this firm is Commercial Accounting In Commercial Accounting

System the expense of each month is recorded in respective month in which these expenses
are incurred rather than the payment of that expense. On the other hand there is another
Accounting System called Cash Accrual in which expense is recorded in that month in
which cash payment is made rather than expense incurred in any month.

 Finance System

On the basis of the record provided by the accounts department, finance is distributed
According to the nature of financial needs. “The person who manages the financial resources
of a business is called Financial Manager.” In traditionally, the role of financial manager or
CFO is known as account manager but not as a result of dramatically changes in business
operations the functions of the account manager or accountant has been enlarged.
Approximately every firm, government agency, and other type of organization have one or
more financial managers who supervise the preparation of financial reports, direct
investment activities, and implement of cash management strategies. At present due to a
large usage of I.T and computers in the business for managing record and organize the data
the most of the time of the Financial Manager / CFO is spend in developing and
implementing the strategies of their organizations.

 Use of Electronic date in decision making

Accounting software (Oracle) is used to generate different reports like general ledger, cash
balances, stock report payment schedule, etc. through these reports it is possible to take
decision relating to any financial matters. Sources and Generation of Funds. The major
sources of funds for KLASH PVT LTD are:
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 Borrowing from financial institutions
 Sale to open market
 Export Sale

 Allocation of Funds

Available funds are allocated by finance department to different sectors like payment to
worker, payments to venders, and payments to banks etc. according to time line as per
predetermine.
The funds of Klash Pvt are allocated on the following way:
 Supplies to open market
 Yarn

 Description of Operations/activities performed by Accounts Department

 Followings are the operations/activities relating to the accounts department

 To receive the purchase order from the relating department for which any purchase is
required (in case of purchase of raw material).
 To receive the bills of purchase or services from the parties along with followings
supporting documents
 Original deliver Chelan from the party which is provided along with the delivery of
goods.
 Inward gate pass along with store receiving
 Recording of entries relating to sale, purchase, cash payments, cash received, bank
payments and bank receipts etc.
 Aging of the payments according to due dates
 To prepare payment schedule on weekly and month basis
 Reconciliation of accounts with venders, suppliers, concerned parties and banks etc
 To make payments according to the predetermined schedule
 Computation of salaries and wages
 To check the physical stock taking at the end of each month
 To make profit and loss sheet for each month
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 CHAPTER 3

PRODUCT/ SERVICE INTRODUCTION

3.1 PRODUCTS:

Klash provide its customers high quality product by using stuff which soft and light
weighted. Product is packed after many quality tests. Product of klash which offered by it is
:

3.1.1 Men's Hoody:

Klash offering its customers a comfortable and high quality hoodies in unique styles.
Available both in pull over zip style. Kangaroo pockets also attached in front of many
hoodies a unique logo is attached on the front side.

3.1.2 Ladies Hoody:

A slim and a stylish hoody is offered by klash. Different and unique shape for ladies hoodies
.it provides adequate winter protection to female body.

3.1.3 Ladies Polo:

It provide its customer a ladies polo shirt combination of the timeless button and comfort
ability. It makes it customized by putting a logo in front side of the shirts.

3.1.4 Ladies T-Shirts

Elegant style and high quality shirt is offered by klash to its customers. Shirts which are
casual and comfortable.

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3.1.5 Ladies Zipper:

Ladies zipper is easy to wear klash make it more easy by using a high quality zip which
import from another country only for providing their best value

3.1.6 Baby T-Shirts:

Baby T-shirt also manufacture at klash under the high supervision of heads that make a
customer reliable. Different type of cartons stickers print on that.

3.1.7 Baby Trouser

Baby trouser with a attractive designs and style is offered by klash to its customer which is
save light weighted.

3.1.8 Baby Hoody

Klash always want to fulfill the customer demand and every product which is manufactured
under view of customer satisfaction baby hoodies is manufacture and more attractive sticker
print on it.

3.1.9 Baby Zipper

Baby is also a product of klash with different styles and easy to wear. The baby zipper is
available in every size.

3.2 SERVICES

Before a product reaching in the hand of hand of customers klash provide Many services
from the raw material to a finished product in the hand of customers. The services which
are provided is following:

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3.2.1 Yarn Store

In Klash Private Limited yarn Store, Yarn Stocked with a large Capacity of Ecru Yarn,
Mélange Yarn and Sewing Thread.
Capacity:
KPL daily capacity of Yarn Store is 50,000 kgs and monthly capacity is about 1.5M kgs.

3.2.2 Yarn Dyeing

In Yarn Dyeing Department there are different no of SOFT WINDING, DYEING, HARD
WINDING, DRYER and HYDRO machines with different daily and monthly capacity.
Capacity:
KPL Yarn Dyeing Daily Capacity is 6,700 Kgs and monthly we have Capacity is about 2
Lakh Kgs.

3.2.3 Knitting

In Knitting Department of Klash Private, there are different Knitting Machines of Twill
Tape, Draw Card, Flat Knitting and Circular Knitting machines with different daily and
monthly capacity.
Capacity;
Our Daily Capacity of Knitting is 36,000 Kgs and Per month Capacity of Knitting is about
9.5 lakh Kgs

3.2.4 Fabric Dyeing & Finishing

KLASH Dyeing not only has the latest machinery to ensure the quality o fabric but also have
fully trained staff having vast experience in dyeing to meet buyer’s requirements. KLASH
Dyeing has capacity of dyeing 15 tons of fabric to fulfill urgent requirements of customers.
Capacity of Work
15,000 / Day
3, 90,000 / Month
46, 80,000 / Year
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 Dyeing Procedure:

While dyeing the Grieg fabric Klash dye house has adopted the proper international system
to make the finishing of fabric according to buyer’s requirement. Working flow of dye house
is outlined below:
 Half Bleaching
 Dyeing
 Wash
 Hydro
 Dry
 Stented
 Compacter
 Raising
 Pitching
Now I’ll discuss all these machine procedure one by one:
Half Bleaching: In this process yellowish color of fabric is removed to get light purified
color This process is called the half bleaching. Chemical that used in this process are (NaOH
+ H2O2)
These chemical removed yellowish color and get purified form.

 Dyeing:

Cotton yarn fabric is dyeid on low temperature then polyester fabric.

 Cotton Dyed on 60 co
 Polyester Dyed on 130 co
Note: In case a fabric composition is both Cotton & Polyester then on 60 co cottan will
dye & Polyester Dyed on 130 co
Usually three types of dyes are used while dyeing:
 Reactive Dyes
 Disperse Dyes
 Direct Dyes

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Reactive: Dyes are used for bleaching the fabric. Disperse: Dyes are used for polyester
fabric, which give excellent overall fastness properties to polyester where its gives very poor
fastness with cellulose. Direct Dyes are used for dyeing cotton fabric. For continues dyeing
of tubular fabric with reactive dyes, in which the fabric passes through a padding phase.
Note: Soda ash fixes the color so it doesn’t wash

3.2.5 Quality Control Lab

Our Quality control lab is accredited for customer Next, C & A, Marks & Spencer, Flyers
Group, Tesco and Brand Alliance and further developing to achieve the certifications of
some other customers.
Capacity:
Our current test capabilities of quality control lab is to manage Colorfastness (washing,
water Etc), physical test like fabric weight and Garment Appearance after Wash.

3.2.6 Processing lab

Processing lab of Klash Private is equipped with different machines to perform their relevant
function. Processing lab of Klash Private has Lab Dipping, Drying, Curing and different
other machines for testing.

3.2.7 Cutting

In klash Private cutting department, we have different cutting machines that totally meet the
needs of our stitching Inductions. Cutting department of Klash Private consists of latest
machines for pattern designing and grading.
The cutting department objectives
 Quality control
 Cutting
 Minimize Wastage
So cutting department is performing these responsibilities.
KLASH Cutting Department is running with 2 Leuctra cutting machines. On both cutters,
the computer shows real time conditions of the marker being cut, as well as the command
menus, which are required to operate the cutting machine. The 2 cutters also have automatic
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speed adjustment. They are also both running on the Lectra CAD system. The 2 cutters
can cut anything within a 3” vacuum (or under suction compression).
In KLSAH cutting department also using hand cutter cutting required pieces for production.

3.2.8 Printing

Our printing department is equipped with state of the art automatic printing machines which
run through the different color scheme to ensure the desired look and quality.
Capacity:
Our daily production of garment printing is about 70,000 pcs and monthly capacity of
printing is 1,820,000 pcs. The specification & general points about these rotaries are as
under:
 Regaining Machine
 Zimmer Machine
 stork Machine:
The Printing department of KLASH is working at its best & producing really good stuff.
After the printing from the rotaries, the route of the fabric depends on the dye class.
If the reactive dyes have been used, then the fabric will be taken to first of all Ager Machine
& then Goller Soaper Washing, then to Stenter finish & finally to the calendar.
On the other hand the fabric treated with pigment dye is taken to the curing machine & from
there it is taken to the calendar after the required stenter finish. Now in the following line,
we’ll see the specifications of the Curing & Ager Machines:
 Curing Machine
 Ager & Curing

3.2.9 Embroidery

Embroidery department of Klash Private have two Embroidery Section having different
machine with capacity mentioned blow.
Capacity:
Our daily capacity of embroidery is about 11,500 pcs and monthly we have rang of garment
embroidery is 299,000 pcs.

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3.2.10 Swing Thread

In the Klash Private Sewing thread Department, There are forty functional Machines with
the different capacity.
Capacity:
Sewing Thread Daily Capacity of 7,000 Cones (5000 Mtrs each) and the Capacity of per
month of 182,000 Cones (5000 Mtrs each).

3.2.11 Stitching

In Klash Private, there are eight different stitching unit having different machines with
different production capacity. Our overall monthly capacity of complete stitching production
is about 2.3M PCS and daily Capacity is 77,000 PCS including all stitching units.
Types of stitching machines
 Lock Stitch
 Chain Stitch
 Twin Needle
 Work Station
 Blind Stitch
 Over Lock
 Flat lock

3.2.12 Warehouse

Warehouse department of Klash Private have different daily and monthly packing, storage
and shipping capacity.
Capacity
We have capacity of warehouse packing is 81,000pcs/day and 2.4M pcs/month and Storage
capacity is about 1,200,000 to 1,500,000 pcs.

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 CHAPTER NO. 04
MY OWN WORK EXPERIENCE

4.1 My duties and learning

4.1.2 Recording the Vouchers

Accounting software “Oracle” is used to prepare vouchers. Three types of voucher I found
during recording.

4.1.3 Receipt Voucher

When an organization receives amount by cash then cash receipt voucher is recorded. If an
organization receives cheque then bank receipt voucher is recorded.

4.1.4 Payment Voucher

When firm pays to a party through cash, cash payment voucher is recorded and if firm pays
through bank cheque then bank payment voucher is recorded.

4.1.5 Journal Voucher

Journal voucher is used to record transactions if do not affect cash or bank receipt or
payment.

4.1.6 Bank reconciliation

This is the second task assigned to me. Sometimes there was difference between bank
statement balance and cash book of the firm. In this situation, bank reconciliation is very
important. The finance manager taught me how reconciles these two statements

23
4.1.7 Inward gate pass

I prepared many gate passes when goods were entered in the organization. Gate pass is
prepared when purchased or other goods entered in firm.

4.1.8 Tax Calculations:

I also calculated the tax on payments at different rates like 0.5%, 3.5%, 6% and 10% etc.

4.1.9 Export Procedure:

Mr. Kashif yaqoob defined me the whole procedure of Export. He showed me all the export
documents and explained me about every document like Export Sales invoices , Bill of
Lading, Commercial Invoice, Clearing Agents Bill, Rebate Documents, Duty Drawback
Documents.

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 CHAPTER 5
SWOT
ANALYSIS

WHAT IS SWOT ANALYSIS?

SWOT is stand for strengths, weaknesses, opportunities and threats. It is method which a
firm use to access their internal and external factors which become hurdle in the growth of
the company and it tells about its opportunities and threat which become a big step toward it
success.

Why managers do swot analysis:

Mangers of KPL always review the mission and goals then they can do the internal and
external environment analysis to identify elements that influence the organization
performance. To determine such elements SWOT analysis is conducted. SWOT analysis is
the method that helps manager identifies the organizational strength, weaknesses,
opportunities and threats.

ST
O w T

5.1 SWOT Analysis

During my stay at the head office as an internee I observed some of the factors that are
directly related to the company’s SWOT analysis

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 Strengths

 Availability of raw materials:

The raw materials are easily available as the nature of the business includes the supply of
cotton in order to make yarn and Pakistan has cotton manufacturing in abundance due to
Pakistan being the fourth largest in the cotton production.

 Skilled labor

The labor here in Pakistan is very cheap which helps in amplification of the textile sector as
there is approximately 39% of the labor working in the sector. Increase in the trend of
unique designs is always appreciated by the customers, so Klash pvt ltd has launched many
of the designs which do gain attractions by its customers nationwide.

 Technologically up to date

Klash use modern machines in thei processing units and other thata prodice high quality of
products . technological is advancement is very important for every competitive and for
those company which to introduce its self globally.

 Achievement’s

Klash has achieve many achievement like Acquisition of ISO 9002 certificate and Equipped
with WRAP certification.

 Weaknesses

 High Cost of Production

Product cost of klash products is high because it passes from different stages which added
value in the production cost.
26
 Small Domestic Market Share

Klash has low market due to high prices of its product. Klash mostly sell their product
foreign countries so their major share of market in foreign country not in a domestic country.

 High Wastage Cost

Klash has to bear high wastage cost due to its large production of garments it has to properly
dispose off it waste that is occur during production process.

 Opportunities

 Entering new markets

Klash has a opportunity to enter in a new market by selling or dealing with foreign
companies. It may also enter in a domestic market by selling their product at low prices

 Addition of new product line

Klash has opportunity of manufacturing or adding new product like socks and winter caps
It may help it a lot because most of foreign countries have cold weather

 Faster market growth

Klash company has commenced many activities and business with across the border hence
making it global company that is recognized and well reputed over the years

 Goodwill

Sapphire also is a well reputed firm which adds a plus point to its position as its recognized
globally and domestically.
27
 Threats

 Entry of new textile competitors

There are always competitors, and here in Pakistan where the textile business is very much
at its peak, there are many competitors which Klash has to outrun on a timely basis, the main
competitors of
 Crescent
 Kohinoor
 Firdous
 Sitara.
 interloop

 Rising cost of production

Rising cost of product is a big threat for a company that becomes a reason of its fall. And
providing a chance to their competitor to come on their place attract all their customer’s.

 Political stability

As we are very well aware of all the political conditions here in Pakistan, any policy
implemented by the government can turn out to be a disaster for the textile sector.

 Economy is not up to market

Economy condition of Pakistan is not in a good favor of Pakistan due to daily changes in
economic condition earning maximum is not possible for company.

28
 CHAPTER NO. 06

FINANCIAL STATEMENT ANALYSIS

6.1 Financial Statements:

Financial statement is a statement which tells about financial performance of a company and their
activities which conducting in the whole year.

6.1.1 Balance sheet

Balance sheet is a financial statement which provide information about company asset and
liabilities.

KLASH PRIVATE LIMITED

Last Three year
Statement of financial position
Particular 2022 2021 2020
Fixed asset at W.D.V 159,105,579 150,937,581 145,065,830
Current Assets
Store & Spare 23,817,398 15,689,202 10,322,715
Stock in trade 215,867,798 67,251,439 46,152,848
Trade debt 144,505,706 69,617,847 57,588,347
Loan & advance 28,010,195 25,461,305 19,459,593
Deposit & payments 1,792,984 1,901,449 1,684,367
Other receivable 27,300,916 4,816,332 7,514,184
Tax refund due to government 18,271,093 26,9848,294 14,165,655
Cash & bank balance 21,970,946 26,948,294 14,165,655
640,642,615 374,962,470 311,705,007
Capital & Liabilities
Share capital & reserve 215,115,400 196,276,483 114,839,045

29
Share deposit money 28,087,418 28,087,418 69,034,295
Staff retirement gratuity 15,538,738 12,092,713 17,063,675
258,786,556 236,456,614 200,991,015
Current liabilities
Trade & other payable
Current portion long term advance 380,488,428 127,866,918 110,056,253
Provision for taxation 10,000,000
1,376,631 638,938 657,739
381,856,059 138,505,856 110,713,992

6.1.2 Profit and Loss Account:

Profit and loss account is a statement which shows a company's revenue and expenses over
a particular period of time or over a year.

KLASH PRIVATE LIMITED

Last Three year
Statement of profit and loss

Particular 2022 2021 2020

Sales 1,051,265,749 837,392,598 625,031,299
Less cost of sale 983,202,484 770,048,290 568,321,746
Gross profit 68,063,265 67,344,308 56,709,553
Other Operating Income
operating Income 29,443,240 3,167,838 25,007,061
Operating expenses 97,506,505 70,512,146 81,716,614
Distribution Cost 37,600,868 21,366,048 32,246,651
Administrative expenses 27,954,447 25,945,198 18,699,018
Other Operating Expenses 1,243,687 1,106,314 2,974,856
Finance Cost 1,508,996 1,460,911 1,284,748
68,307,998 49,878,471 55,205,273

30
 Profit /(loss) before taxation 29,198,507 20,633,675 26,511,341
Taxation 10,359,590 8,284,437 6,174,136
Profit /(loss) carried to B\S 18,838,917 12,349,238 20,337,205

6.2 Financial Analysis:

Financial analysis is the process of evaluating businesses, projects, budgets, and other
finance-related transactions to determine their performance and suitability.
 Ratio analysis
 Horizontal analysis
 Vertical analysis

6.2.1 Ratio Analysis:

Ratio analysis is a quantitative procedure of obtaining a look into a firm's functional

efficiency, liquidity, revenues, and profitability by analyzing its financial records and
statements.
 Liquidity ratios
 Profitability ratios
 Solvency ratios
 Turnover ratios
 Market value ratios

6.2.1.1 Liquidity Ratio:

Liquidity ratio is the ratio between the liquid assets and the liabilities of a bank or other
institution. There are three types of liquidity ratio:
 Current ratio
 Quick ratio
31
32
 Cash ratio

 Current Ratio:

The current ratio describes the relationship between a company's assets and liabilities.

Formula:
Current ratio= Current Assets / Current liabilities

Particulars 2022 2021 2020

Current asset 481,537,036 224,024,889 166,640,177
Current liabilities 381,856,059 138,505,856 110,713,992
Current Ratio 1.3 times 1.6 times 1.5 times

Interpretation:

We can see that the current ratio in 2020, 2021 and 2022 is 1.3, 1.6 and 1.5 respectively. The
ratios difference shows that firm has sufficient current or liquid assets to meet its current
obligation but Liquidity decreased by 2021 to 2022 but higher in the 2020. Which means
company has less able to pay against asset as compare to 2020.

Formula
Woking capital= current asset –current liabilities

Particulars 2022 2021 2020

Current asset 481,537,036 224,024,889 166,640,177
Current liabilities 381,856,059 138,505,856 110,713,992
Working capital 99,680,977 85,519,033 55,926,185

33
Interpretation:

Working Capital shows the value of net liquid assets to meet the day to day obligations of
the company. So company has very good working capital increasing by every year from
2020 to 2022.

 Quick Ratio:

The quick ratio represents the extent to which a business can pay its short-term obligations
with its most liquid assets.

Formula:
Quick ratio== (Current Assets – Inventory or illiquid assets) / Current Liabilities

Particulars 2022 2021 2020

Current Assets 481,537,036 224,024,889 166,640,177
Stock In Trade (215,867,798) (67,251,439) (46,152,848)
Store (23,817,398) (15,689,202) (10,322,715)
Net Current Asset 241,851,840 141,084,248 110,164,614
Current liabilities 381,856,059 138,505,856 110,713,992
Quick ratio 0.63 times 1.01 times 0.99 times

Interpretation:

Here we can see the quick and liquid ratio is less than 1, so it may be little bit dangerous in
case of urgently liquidation. Besides this there is a signal that the quick ratio increased from
.0.99 to 1.01 in the year of 2020 but decrease in the year of 2019 from .1.01 to .63, so it is
not a good sign.

 Cash Ratio:

34
The cash ratio measures the company’s capacity to repay short-term liabilities with its cash
and cash equivalents.

Formula:
Cash ratio=cash and cash equivalents/current liability

Particulars 2022 2021 2020

Cash & Bank Balance 21,970,946 26,948,294 14,165,655
Total liabilities 381,856,059 138,505,856 110,713,992
Debt ratio 0.05 times 0.19times 0.12 times

Interpretation:

Decline in the cash ratio indicates that company is insufficient cash to meet its internal shot-
term expenses.

6.1.1.2 Leverage Ratio

Financial leverage ratios provide an indication of the long-term solvency of the firm
financial leverage ratios measure the extent to which the firm is using long term debt and
measures the degree of protection of Suppliers of Long Term Funds.

 Debt Ratio

A ratio is derived by using debt and asset value putting liability in denominator.

Debt Ratio = Total Debt / Total Assets

35
Particulars 2022 2021 2020
Total Assets 640,642,615 374,962,470 311,705,007
Total liabilities 381,856,059 138,505,856 110,713,992
Debt ratio 1.7 times 2.7 times 2.8 times

Interpretation:

A ratio that indicates what proportion of debt a company has relative to its assets. The
measure gives an idea to the leverage of the company along with the potential risks the
company faces in terms of its debt-load. In 2020, the company took huge amount of debt as
compared 2021 and 2022. The amount of debt in the years of 2020 and 2021 is rather same
but in 2022 debt amount decreased rapidly. In 2022 sundry creditor and advances from the
customers were decreased rapidly.

 Debt-to-Equity Ratio

Debt-to-equity ratio use to calculate how much a company has a debt as compared to its
asset.

Formula
Debt-to-equity = Total Debt / Total Equity

Particular 2022 2021 2020

Total debt 381,856,059 138,505,856 110,713,992
Total Equity
258,786,556 236,456,614 200,991,015
Debt-to-Equity 1.5 times 0.6 times 0.5 times

36
Interpretation:

In the year 2022 debt-to-equity ratio is high it means company borrowing from outsider and
it is less utilizing its resources but in the year 2020 company debt-to-equity ratio less which
means that company utilizing its resources to run operations.

6.2.1 Profitability Ratio:

A probability ratio is a specific financial metric that a company can use to measure and
analyze its financial health.
 Gross profit margin
 Net profit margin
 Return on equity
 Return on Assets

 Gross Profit Margin:

Gross profit margin is the portion of a company's revenue left over after direct costs are
subtracted.

Formula:
Gross profit margin = (Gross Profit / Sales) x 100

Particular 2022 2021 2020

Gross profit 68,063,265 67,344,308 56,709,553
Sales 1,051,265,749 837,392,598 625,031,299
GPM 6% 8% 9%

37
Interpretation:

From the above table we can conclude the company’s gross profit margin decreasing which
means the cost of goods sales are increasing 9% to 6% with the passage of time which must
be controlled.

 Net Profit Margin:

Profit margin is a common measure of the degree to which a company or a particular

business activity makes money.

Formula:
Net profit margin == (Net Profit / Sale) x 100

Net Profit Margin 2022 2021 2020

Net Profit 18,838,917 12,349,238 20,337,205
Net Sale 1,051,265,749 837,392,598 625,031,299
Net profit margin 1.79% 1.47% 3.25%

Interpretation:

This ratio is used to evaluate a company’s operational efficiency. The year 2020 has highest
net profit ratio. The sale graph is going upward and year 2020 has lowest net profit margin.
In years of 2021 sales rapidly decreases. But in 2022 net sales graph is starting moving
upward again.

 Return on Equity:

Return on equity (ROE) is a measure of a company's financial performance that shows the
38
relationship between a company's profit and the investor's return.

Formula:
Return on equity (ROE) = Net Income / Equity×100

Return on equity 2022 2021 2020

Net profit 18,838,917 12,349,238 20,337,205
Total Equity
258,786,556 236,456,614 200,991,015
ROE 7.2% 5.2% 10.1%

Interpretation:

ROE is lower in the 2021 in the next year earing on equity is decreases and in 2022 its return
on equity is frequently increases.

 Return on Asset

Return on Asset measures the profits against the assets. It indicates how well the company is
using its assets to generate profits. In other words, it measures the company’s ability to
generate profits using the assets measures the profits against the assets. It indicates how well
the company is using its assets to generate profits. In other words, it measures the
company’s ability to generate profits using the assets.

Formula:
ROA== (Net Income / Total Assets) x 100

Return on Asset 2022 2021 2020

Net profit 18,838,917 12,349,238 20,337,205
Total Asset 640,642,615 374,962,470 311,705,007
ROE 2.9% 3.2% 6.5%

39
Interpretation:

Return on assets decreases in the 2021 and 2022 year from 3.2% to 3.% 2 but increased in
the year of 2021 from 3.2% to 6.50% as a good indication.

6.2.1.4 Turnover Ratios:

Turnover ratios indicate how well the company uses its assets and liabilities to generate
revenue. They are also known as efficiency ratios, as they determine how efficient the
company’s management is.

 Fixed Asset Turnover Ratio

The fixed asset turnover ratio measures how efficiently a company generates revenue from
its fixed assets. Also, a high ratio implies that the company efficiently uses its fixed assets to
generate revenue.

Formula:
Fixed Asset turnover Ratio=Sales/Net Fixed Asset

Fixed Asset turnover ratio 2022 2021 2020

Sales 1,051,265,749 837,392,598 625,031,299
Fixed Asset at WDV 159,105,579 150,937,581 145,064,830
Fixed Asset turnover Ratio 6.6 5.5 4.3

Interpretation:

In 2022 company fixed asset turnover ratio is high as compare to next year that refers Klash
efficiently using fixed for generation of profit.

40
 Receivable Turnover Ratio

The receivables turnover ratio measures the speed at which the company can collect its
receivables. It indicates the number of times the receivables are converted into cash during a
year.

Formula:
Receivables turnover ratio= Annual Credit Sales / Accounts Receivable

Fixed Asset turnover ratio 2022 2021 2020

Sales 1,051,265,749 837,392,598 625,031,299
Fixed Asset at WDV 159,105,579 150,937,581 145,064,830
Fixed Asset turnover Ratio 6.6 5.5 4.3

Internship:

Here is the decline in the Receivable turnover over ratio from 2020 but little bit increase in
2021. In 2022 sales increases as compared to base year and R/a Turnover increased, it is n
the its favor of company that Sales Volume increased, so it is not good.

6.2.1.5 Market Ratios

Note: The company is not listed, shares have not issued therefore following ratios cannot be
calculated. The formulas of these ratios are as under.

 Dividend per Share

It refers to a how much a total dividend pay out to its outstanding shareholders by a

41
company over a period of 12 month.

Formula:

Dividends per share = dividends paid to equity shareholders / average number of issued
equity shares

 Earnings Per Share

This ratio defines that how much money buy a business makes for each share of its.

Formula:

EPS = (Net income – Dividends on preferred stocks) / Average outstanding shares

 Price Earnings Ratio

The P/E ratio is a key tool to help you compare the valuation of individual stock or entire
stock indexes.

Formula:

P/E ratio = Market value per share / Earning per Share (EPS)

6.3 Horizontal Analysis:

Horizontal analysis involves the comparison of financial data over a period of time. It helps
to understand the growth or decline in different financial metrics. It is used in financial
statement analysis to compare historical data, such as ratios, or line items, over a number of
accounting periods. Horizontal analysis can either use absolute comparisons or percentage
comparisons, where the numbers in each succeeding period are expressed as a percentage of
the amount in the baseline year, with the baseline amount being listed as 100%. This is also
42
known as base-year analysis. Horizontal analysis is valuable because analysts assess past
performance along with the company's current financial position or growth.

Formula:
Horizontal analysis = Amount in comparison year / Amount in base year x 100%

KLASH PRIVATE LIMITED

Last Three year
Statement of financial position
Horizontal analysis
Particular 2022 2022 2021 2021 2020
Rs % Rs % %
Fixed asset at W.D.V 159,105,579 109.6% 150,937,581 104% 100%
Current Assets
Store & Spare 23,817,398 230.7 15,689,202 151.9 100
Stock in trade 215,867,798 467.7 67,251,439 145.7 100
Trade debt 144,505,706 250.9 69,617,847 120.8 100
Loan & advance 1,792,984 143.9 25,461,305 130.8 100
Deposit & payments 1,792,984 106.4 1,901,449 112.8 100
Other receivable 27,300,916 363.3 4,816,332 64.09 100
Tax refund due government 18,271,093 187 12,339,021 126.5 100
Cash & bank balance 21,970,946 155.1 26,948,294 190 100
481,537,036 288.9 224,024,889 134 100
640,642,615 205.7 374,962,470 120 100
Capital & Liabilities
Share capital & reserve 215,115,400 187.3 196,276,483 170.9 100
Share deposit money 28,087,418 100 28,087,418 40.6 100
Staff retirement gratuity 15,583,738 91 12,092,713 70.8 100
258,786,556 128.4 236,456,614 117 100
Current liabilities

43
Interpretation:

The company’s total assets continuously increasing from 120% in 2021 and 205% in the
year of 2022 which is a very impressive supplement of the company’s assets. Fixed assets
are increasing with the passage of years, but in current assets deposits and payments are
variable and is higher in year 2022.Cash and bank balance is also higher as compared to base
year 2012.Share deposit money has decrease in year 2022 and 2021 as compared to 2020

Horizontal analysis of profit and loss :

KLASH PRIVATE LIMITED

Last Three year
Statement of profit and loss
Horizontal analysis
Particular 2022 2022 2021 2021 2020
Rs % Rs % %
Sale 1,051,265,749 115% 837,392,598 134% 100%
Less cost of sale 983,202,484 173% 770,048,290 135% 100%
Gross profit 68,063,265 120% 67,344,308 119% 100%
Other operating income
Operating income 29,443,240 117% 3,167,838 13% 100%
Operating expense 97,506,505 119% 70,512,146 86% 100%

Distribution cost 37,600,868 116% 21,366,048 66% 100%

Administration expense 27,954,447 149% 25,945,198 139% 100%

Other operating expense 1,243,687 41.8% 1,106,314 37% 100%
Finance cost 1,508,996 117% 1,460,911 114% 100%
68,307,998 137% 49,878,471 90% 100%
Profit / (loss) before taxation 29,198,507 110% 20,633,675 78% 100%
Taxation 10,359,590 167% 8,284,437 135% 100%
Profit / (loss) carried B/S 18,838,917 92.6% 12,349,238 61% 100%

44
Interpretation:

 The sale of the company increasing through passing of year as from135%and then
to 173% in the year of 2022.
 The gross profit increases to some extend but increased in the year of 2022 as up
to 120%.
 The net profit the company also increasing through the selected period but there is a
big increase in the profit of the company from 92.6% to 61% in the year of 2022.

6.4 Vertical analysis:

In vertical analysis we just place percentage of each line or category with regard to sales in
the profit and loss account and place the percentage of each line item with regard to total
assets in the balance sheet. In profit and loss account we take the sales as 100% percent and
calculate the each item as the percentage of sale and then compare with each other, but in
balance sheet we take the total assets of the company as 100% and calculate the each line
item as the percentage of the total assets and then compare over different year or with other
organization. So following are the comparative profit and loss account and the comparative
balance sheet over three years.

Formula:
Vertical analysis =balance sheet item/total asset

45
 KLASH PRIVATE LIMITED
Last Three year
Statement of financial position
Vertical analysis
Particular 2022 2022 2021 2021 2020 2020
Rs % Rs % Rs %
Fixed asset at
159,105,579 25% 150,937,581 40% 145,064,830 47%
W.D.V
Current Assets
Store & Spare 23,817,398 4% 15,689,202 4% 10,322,715 3%
Stock in trade 215,867,798 34% 67,251,439 18% 46,152,848 15%
Trade debt 144,505,706 23% 69,617,847 19% 57,588,347 18%
Loan & advance 1,792,984 4% 25,461,305 7% 19,459,593 6%
Deposit & payments 1,792,984 0% 1,901,449 1% 1,684,367 1%
Other receivable 27,300,916 4% 4,816,332 1% 7,514,184 2%
Tax refund due to 12,339,021 9,752,468
3% 3%
government 18,271,093 3%
Cash & bank 21,970,946 26,948,294 14,165,655
3% 7% 5%
balance
481,537,036 75% 224,024,889 60% 166,640,177 53%
640,642,615 100% 374,962,470 100% 311,705,007 100%

Capital &
Liabilities
Share capital &
215,115,400 56% 196,276,483 142% 114,893,045 104%
reserve
Share deposit
28,087,418 7% 28,087,418 20% 69,034,295 62%
money
Staff retirement
15,583,738 4% 12,092,713 9% 17,063,675 15%
gratuity
258,786,556 68% 236,456,614 171% 200,991,015 182%

46
Current liabilities

Trade & other

payable 380,488,428 99.6 127,866,918 92.3 110,056,253 99.4

Current portion 10,000,000

7.2
long term
advance
Provision for
1,367,631 0.35 638,938 0.46 657,739 0.59
taxation
381,856,059 100% 138,505,856 100% 110,713,992 100%

Interpretation:

Current assets in year 2022 has higher ration as compared to fixed assets. While in year 20
fixed assets is low than current assets. In year 2022 current liabilities are higher that capital
and other liabilities. While in all other years’ current liabilities are less than capital and other
liabilities

Vertically analysis of profit and loss account :

Formula
Analysis of profit loss account = income statement item/sales

KLASH PRIVATE LIMITED

Last Three year
Statement of profit and loss
Vertical analysis

Particular 2022 2022 2021 2021 2020 2020

Sale 1,051,265,749 100% 837,392,598 100% 625,031,299 100%
Less cost of sale 983,202,484 93.5 770,048,290 91.9 568,321,746 90.9

47
48
Gross profit 68,063,265 6.4 67,344,308 8 56,709,553 9.1
Other operating
income
Operating income 29,443,240 2.8 3,167,838 0.37 25,007,061 4
Operating expense 97,506,505 9.2 70,512,146 8.4 81,716,614 3
Distribution cost 37,600,868 3.5 21,366,048 2.5 32,246,651 5
Administration
expense 27,954,447 2.6 25,945,198 3 18,699,018 3
Other operating 0.11
1,243,687
expense 1,106,314 0.13 2,974,856 0.5
Finance cost 1,508,996 0.14 1,460,911 0.17 1,284,748 0.2

68,307,998 0.65 49,878,471 5.9 55,205,273 9

Profit / (loss) before 2.7 2.5 4.2
29,198,507 20,633,675 26,511,341
taxation
Taxation 10,359,590 0.98 8,284,437 0.98 6,174,136 1
Profit / (loss) carried
18,838,917 1.79 12,349,238 1.47 20,337,205 3

Interpretation :

Briefly we can see and observe that the company net profit in the year 2020 was 3% but
there is a little bit reduction in the profit as from 3 to 1.47% and increased as up to 1 to 79 %
in 2022. That show company moving in the best direction

49
 CHAPTER No.

CONCLUSION

7. Conclusion

KLASH (PVT) Limited is one of the leading groups in Pakistan. The system, the
management style, the policies & decentralized decision making environment is really
remarkable. This report is basically an attempt to identify the areas which need to be
improved.

In this era of technology, the “Information” is the key to success in the business. This means
that the successful businessman will be who will have the right information at the right time.
This comment leads to the conclusion that the Information Sharing Process should really be
improved.

The overall analysis is indicating that the company’s progress has mainly attained through
education of employees. The effectiveness of its management, their willingness to take
advantage of opportunities and face challenges of changing economic picture, this all
contributes to the very much improved and sound position of company. This is really
appreciable for the devotion and hard work of all the employees of the company.

From the above all discussions, examination and analysis we can say that Klash pvt
company has strong financial strength and well structured. We did the different analysis to
examine the organization and also compare its one of the competitors. We conclude the
following results from the above financial data. The klash has strong and enough liquid ratio
to meet its current obligation but decreasing with the time passing.

 We also conclude that the company’s net profit margin was 2.24% in 2020 but little
decrease happened in 2021 which was 2.19% but they improve their profit to a
maximum extend such as 3.43% in the last year.
 Return on assets and return on equity are also decrease in second but increase
sufficiently in the third year.
50
 We also conclude that there is continues addition in the earning per share of the
company.
 In SWOT analysis we conclude that the klash has strong financial strength but autocratic
style in their internal control.
 There are highly skilled worker but they have a traditional organizational structure and
stressful environment in the organization.

What do i have learn?

In the First week, I had to visit the time office, Labor office, HR offices, marketing
department, production units and dying house, it gave me a basic idea about the timings of
the organization. I studied the account department within the next one week to differentiate
between the accounts and sales the both departments procedure of work is different. Then I
studied the account Department for 2 days to participate and consult with the HRM
functions. During this internship session, one week was given to me for studying other
departments and observing the working of Account department.

The final week was specialized to consult the problems and issues, I became aware of all the
departments and functions of accounts in all departments. I worked as an officer. I learn how
to work professional.

51
 CHAPTER 8

RECONMMENDATIONS

8. Recommendations

Based on the insights gained during your internship and studying the organization, the
following suggestions could potentially lead to success for the company.

Recommendations for Improvements are:

 Different training courses should be arranged for the up lifting and improving the
quality of work for employees.
 There is also a problem of work overload for the employees and it should be control
properly so that the employees are motivated.
 Marketing department depend on only existed buyer, they should discover more
buyer.
 Klash production cost is high because of not properly utilization of its resources they
should develop such a system to minimize their cost of production.
 The decisions are made by the upper management which is weakness of the KLASH.
 They should have proper idea about the situation and their decision which should be
fruitful for the company.
 The advertising and promotional activities should be increase in Klash.
 Klash should develop their own Brand.
 Company has reduced its current ratio during year 2020 up to 1.53 as compared to
next year so this should be improved by utilization of its assets more efficiently. The
ideal ratio is 1:1 for the company
 Working Capital should be controlled in different areas by proper planning
 Debt Ratio in year 2022 is high as compare to other years which should be reduced
 Net Profit during year 2021 and 2022 is low due to high production cost. This should
be controlled by improvement in production cost and factory overhead
 klash should reduce the paper work and work more on the advanced software
available these days that require less paper works.

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 I observe that the employees of this organization do not satisfied from their jobs as
they less compensated as compare to labor market, they do not have others facilities
or perquisites from the company which others company offered, therefore there is
high employees turnover, which may prove very danger for the company. I recomm-
end that the company must do more and more to satisfied their employees to achieve
the high quality products and services. I also observe that the klash net profit is good
but less impressive to its competitor so the company should have to minimize their
expenses and try to increase their income and revenue to keep its profit equal or
increase its competitor industries.
 Company should reduce the paper work and work more on the advanced
software available these days that require less paper works

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