Internship Report on Gulberg Fashion

Without their knowledge, wisdom, guidance, and prayers, I would not have achieved the goals I have strived for and the best to reach my dreams.

I thank Almighty Allah who blessed me and made it possible for me to complete this internship report. I am also very grateful to may parents who supported me during the hard times I faced. I wish to express profound gratitude to my teacher Sir Mansoor Mehmood for his persistent guidance, keen interest and continuous encouragement.

I am also thankful to all my teachers of IBIT who taught me and helped to apply the bookish knowledge into practical life. I am also extremely thankful to all my team of Gulberg Fashion who made this project possible for me.

I considered many options in deciding where to do my internship. My option included working in a Bank, working with Insurance Company or working in Textile sector. I decided to work in a textile company as 68% of the Pakistan’s export is dependent on Textile. I think Textile sector has bright future in coming years. Keeping this in mind, I decided to start my internship in Gulberg Fashion.

Gulberg Fashion is engaged in processing raw fabric to finished products and exports these products to different countries. Gulberg Fashion is situated in Sialkot and same location is for its head office. I worked in the head office and paid occasional visits to the factory in order to visualize the production process. I worked with all the departments which are:

I started with the Finance Department as it is related with my major. In my internship I learned how to manage accounts for all types for the efficient working. To do the internship was much more important to me because it was not only the degree requirement but also an opportunity to grab practical experience before starting my professional career by getting proper employment in the business.

Gulberg Fashion was established in 2001 in Sialkot for meeting the demand of good quality fabrics worldwide. The unit started operations in 2001 and its production capacity fulfilled the expectations of the management and proved as a successful venture.

Top management and all the employees, by hard work and sincere efforts, increased the exports of the company so that it became the leading fabric exporter in Sialkot. Gulberg Fashion is exporting its products to several countries including UK and UAE.

Now by the grace of Allah (the Almighty) Gulberg Fashion is one of the successful and leading exporters of fabric and garments.

The textile manufacturing sector includes companies engaged in various textile products such as yarn, thread, twine, and knit fabrics, textile dying, coating, and waterproofing. Finished textile products include apparel, leather, curtains and drapes, canvas sheeting, and other fabric items. Pakistan exports are high dependent on the textile industry. Pakistan has become one of the leading cotton producing country.

Pakistan is the fourth largest cotton producing country in the world. Pakistan’s main share of textile products is more than 50% yarn only. Today Pakistan’s textile industry is based on 60% on spinning sector, 22% on weaving sector, and 18% on the finishing sector.

Share of the textile sector in Pakistan’s economy, along with its contribution to exports, employment, foreign exchange earnings, investment and value added in industry, makes it the single largest determinant of the growth in the manufacturing sector. It has 46% share in overall manufacturing activity, 68% share in export earnings with the value of $7 billion. The value addition in this sector accounts for 9% of GDP and its share in the overall employment is 38%.

Textile industry is concentrating towards value added products which includes garments, finishing fabric, home textiles, towels, curtains, trousers, shirting, and designer knitwear. The textile industry in the future requires increase of organizations producing value added products to meet growing international demands.

Gulberg Fashion is one of the leading manufacturers and exporters of Fabrics and garments in Pakistan. Gulberg Fashion is a partnership firm came into existence in 2003. Gulberg Fashion is involved in dyeing and printing on different kinds of fabric targeting mainly export markets but also keeping a small presence in the local industry.

A continuous balancing, modernization and replacement have been taking place in the organization making it one of the leading exporters of its size. With the dynamic leadership of its CEO, Mr. Sheikh Irfan and a dedicated team of professionals in the finance, marketing and technical departments, Gulberg Fashion has been able to make quality products and has increased its exports sales by an average of 50% in the last 3 years.

Playing an essential and critical role in the private sector and exports for the country, Gulberg Fashion has increased its sales and total assets at an average of 15% and 10 % respectively in the last 3 years.

Gulberg Fashion core competence lies in providing quality controlled fabrics with efficient utilization of its available resources.

We believe in business relationship on the basis of trust & partnership. Client satisfaction is our top priority. Our product line ranges from grey fabric to processed fabric. Processed range includes Bleached, Printed & Dyed Fabric. All our fabric is made according to the specification of   the countries to which these are exported to. These specifications include composition, construction and width.. Our commitment to quality and timely delivery has made us proud to have long list of satisfied and loyal customers.

The organization offers quality Grey Fabric in different constructions and widths which includes Percales, Twills, Drills, Satins, Stripe Satins in 100% Cotton, Poly-Cotton & CVC Blend with Dobby designs and with multi pick insertion facility. Gulberg Fashion also offer this fabric with having wide range in raw cotton like PIMA, Giza, CIS and Pak-cotton etc as preferred by the customers.

Some of our regular items which we are supplying to UAE and Europe:

With the edge of our in-house weaving, we can supply quality product with efficient deliveries. This is one of the reasons why we have long list of satisfied and loyal customers.

We have got ISO standard finishing arrangements to provide Bleached, Dyed & Printed fabrics in narrow and wider widths according to the specification of customers.

We deal in all kinds of fabrics in bulk quantity stock fresh fabric and produce 100 %cotton and poly/cotton fabrics like gray, bleach, dyed and print.

Bed sheets
We expertise in hospital, hotel and home bed sheets.

Towels
Deal in terry towel, bath towel, hand towel in cotton

Gulberg Fashion is a partnership firm came into existence in 2001 in Sialkot. The principal business of the organization is get raw fabrics and converting those raw fabrics to finishing form after dying and printing and exporting of these finished products to different countries. The registered office and factory of the organization is situated at AHMED PURA, Sialkot.

The top management establishes the operating policies and reviews performance on the regular intervals to ensure that the performance of the company is in compliance with these policies.

The management team of the organization comprises of dynamic professionals qualified to meet the challenges of the market-place. The organization follows an aggressive marketing strategy, which has resulted in a well-diversified client list and a geographically hedged revenue base.

CEO: Sheikh Irfan

G.M Marketing: Mrs. Irfan

Financial Controller: Mr. Amir

Operations Manager: Mr. Musawwar

Exports: Mr. Amir

Textile production comprises of cotton ginning, cotton yarn, cotton fabric, fabric processing (gray-dyed-printed), home textiles, towels, hosiery, knitwear and readymade garments. These components are being produced both in the large-scale organized sector as well as in unorganized cottage/small and medium units. The current status of these various subsidiary textile industries is reviewed below:

The ginning sector is out-dated and needs modernization. There are 1221 ginning factories in Pakistan and their total capacity is approximately 20 million bales per year while total production of ginned cotton is 10million bales suggesting an excess capacity of ginning in the country.

At present, spinning sector is comprised of 453 textile units (50 composite and 403 spinning units) with 9.2 million spindles and 147 thousands rotors.

Weaving sector is comprised of hosiery, garments, towels, canvas and bed-wear. The weaving sector has different sub-sectors i.e. integrated textile units, independent weaving units, and power loom unit. The power looms encompass poor technology, scarcity of quality yarn and the lack of institution financing.

The production of cotton cloth in the mill sector has increased at a tremendous pace by 17% last year while the non-mill sector has registered a modest growth of 6 in the same period.

Major products in textile down stream industry are hosiery, towels, canvas and bed-ear, tents, cotton bags, readymade garments and fashion apparels. Industries like knitwear industry, readymade garments and towel industry are included in downstream industry.

Pakistan is facing heavy competition from countries like China, India, Italy, Spain and Turkey who are doing their best to install new machines and units to stimulate their respective exports. In the coming years, China and Turkey will be the biggest competitors. Turkey is investing a lot in finishing of home textiles, garments, and fashion industry. On the other hand, China is buying new as well as used textile machines from all over the world to fulfill the future demands.

Cotton ginning factory Textile mill Agent Buyer

Cotton is imported from following countries: USA, Australia and Egypt.

Machinery is imported from countries like: Japan, Italy, Germany, Turkey, etc.

In the future Gulberg Fashion is presented with challenges as well as opportunities for the company. For a textile manufacturing organization to compete in the international market, it needs to continuously improve their quality to meet tough international standards and also increase productivity. Keeping this in mind, Gulbelg Fashion is exporting high quality fabrics, and dyeing and printing are also added features, for which it is very important to buy top-notch quality fabrics; hence Gulberg Fashion purchases raw fabrics from very selective manufacturers who provide them with excellent fabrics. As a result, Gulberg Fashion is producing high quality finished products and competing the international markets like USA, UK, UAE, etc. Gulberg Fashion presence in the international market already gives them an edge over their competitors as their brand is already established in the market. In addition to this, Gulberg Fashion has gone into self-generation, which happens to be the most expensive input after raw materials, which significantly decreases its cost and puts it as an advantage in the international arena.

Financial Controller

Manager production

G.M Marketing

I joined Gulberg Fashion on 7^{th April, 2008 as part of my internship. I worked with all the departments of the company. As my major is Finance hence I started my internship from Finance department and spent maximum time there as compared to time spent in the other departments of the organization which includes Import/ Export Department, Purchase Department, and Marketing Department.}

The bleaching process is the main process. After weaving mill, the fabric is brought for the bleaching. The Quality Control people ensure the Quality of work in the Bleaching to fulfill the desired quality.

Following machines are used in Bleaching process:

Printing of fabric is done from rotaries and now 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.

Dyeing process is very important and crucial which involves the following three machines:

Finishing of fabric is the process which assures the quality of the fabric and gives it a perfect look. It is a very important process. The latest machines which include Stenters, Raising Machines & Sanforizing Machine, are used in finishing process.

Gulberg Fashion has its Marketing Department to sell its finished goods. Gulberg fashion sells its garments and yarn in the local as well as international markets. Gulberg fashion has an Export Department specially designed to cater its international orders. Most of the yarn produced at Gulberg Fashion is being exported to various destinations including USA, UK, UAE, etc. For this purpose, Gulberg Fashion has an export Manager who is responsible for the activities involved in the entire export process.

Export process documentations

I learned to prepare the following documents which are made when Gulberg Fashion sells its products:

There are 5 parties involved in export process

In the contract the following are mentioned:

In this document the things are mentioned:

Then documents are sent for negotiations with the buyer’s bank.

The next step is to prepare pre-shipment documents which are as follows”

Commercial invoice documents are prepared on the company’s letter pad. Only the name of the buyer’s bank is mentioned not the complete name of the buyer. Insurance in covered by the buyer.

In this invoice the following things are mentioned:

Application for removal of zero rated exemption is filed when the container is released from the factory; this document is sent to the head office.

The following is the purchase procedure of GFE:

First a Demand Order of material required at Factory is sent to Head Office. The demand arises department wise. The store officer prepares the purchase requisition which is approved by the General Manager. The requisition is then sent to head office. Purchase Department receives the requisition and sends it to the Accounts Department for items coding and rate verification. Next it is forwarded to the Head Office manager for approval. The manager forwards it to the CEO for the final approval. If the demand is approved by the CEO it is purchased by the Purchase Manager.

After receiving the goods with bill, the purchase officer prepares Dispatch Advise as per items on the bills. Purchase officer delivers these documents in the shape of complete set to the Accounting Department. In the Accounting Department responsible person sends it to factory in the shape of summary. In the factory store officer receives the bill and attaches some documents i.e. Gate entry pass, store intimation, GIRN (gate inspection receipt note) to be sent back to the head office after signed by general manager. Finally the Accounting Department books the approved bill in the ledger party wise.

Following are my internship activities in Finance department “GULBERG FASHION”:

Tasks assigned to me were:

Journal voucher is used when there is not cash or bank is involved in a transaction. There are so many types of transactions for which journal vouchers are prepared. For example, when goods are sold to the customers on account, the journal transaction is recorded this way:

Accounts receivable Debit

Sales Revenue Credit

Cash receipt vouchers and cash payment vouchers are also used for the receipt and payment of cash.

Along with other financial matters of the organization, it was my responsibility to prepare bank reconciliation statement for the account of the GFE with the bank. Bank reconciliation statement usually indicates the difference of presentation of the checks which were issued to the vendors for the payment. When a check is issued to the vendor, it is up to the vendor whether he presents the check to the bank soon or later. That time variation of presentation of check leads to the variation in the balance in the records of the organization and balance of account in the record of bank.

Current account of the organization is allocated to some portion of the total payments made by the organization. Reconciliation of that account is also necessary for determining the actual balance of account.

I used to assist the Assistant Manager Finance for making the budget for different kinds of expenses related to office and in maintaining the daily expenditures’ record of the organization.

At the end of the period, the record of actual expenditures and budgeted expenditures are compared. So that it is possible to determine the difference of estimated and actual amounts of various kinds of expenses. And this comparison is helpful in making budget for next period.

Another responsibility of mine is to maintain the files for different kinds of documents.

Payroll sheet is an important document which is to be prepared in all organizations for the efficient procedures. I learned how to prepare payroll sheet in Gulberg Fashion.

���

The person who has been supervising me throughout this internship at Gulberg Corporation was Mr. Imtinan Saeed Mir. He was the accounts officer in Gulberg Fashion. He started his career with the Gulberg Fashion 3 years back and fully satisfied with the working environment there. He is very supporting and motivating towards his subordinates and appreciates everyone who works hard to complete the task assigned.

I found him a good team player who makes his team-members working sincerely. He knows better how to manage stress and resolve conflict among the team-members in a very wise manner.

In international market China and Bangladesh are major threats to Pakistan Textile Industry because in the said countries the electricity and labor is much cheaper and also the workers are more skilled.

The company can increase its exports in the international market as there is high demand for quality products in many countries in Europe and other continents.

Local market is very competitive so GFE needs expansion to compete in local as well as international market.

During my internship in Gulberg Fashion Enterprise I was able to point out the following problems that the company is facing:

If Gulberg Fashion takes into account all the above mentioned problems and the proposed solutions the company will see its image improving in the market place. A good image will make it a market leader in the textile industry.

Following are the recommendations for IBIT:

There must be strong relations of IBIT with the industry for the better future prospects of its students. Relations with multinational companies, banks and government organizations will help in making IBIT’s students product which is actually required by the industry.

It is the responsibility of IBIT to arrange internship for its students. Its not just on the students’ end to put efforts in making recognition for IBIT, but IBIT must contribute its efforts because future of students of IBIT is indeed the Future of IBIT.

Workshops and Seminars must be organized in order to help the students enhance their skills required by the employers. Seminars will also be helpful for the IBIT and its student’s success.

IBIT should arrange industry visits for its students on regular basis. It will help the students to get exposure of the professional world where they are going to contribute their skills and knowledge.

IBIT should arrange and offer its students a volunteer internship for its students may be lasting for 2 to 3 weeks during the program. It will help students to get practical exposure of what they are learning at IBIT.

Same as CIF except that insurance is covered by buyer.

Cost, Insurance, and Freight a pricing term under which the seller pays all expenses involved in the placing of merchandise on board a carrier and in additional prepares the freight and insurance to an agreed destination.

A transportation line that hauls cargo

Cost indicated that the seller will deliver the goods on to a vessel and pay all the normal charges to get the cargo to the named seaport. The buyer risks from the time the cargo is placed on to the vessel on the seaport of loading.

A governmental permit is required to export certain products to certain destinations.

As in FOB vessel a pricing term under which the seller must deliver goods on board the ship at the point named at his own expense.

A document issued by the insurance company, usually to the order of shipper, under a marine policy and in cover of a particular shipment of merchandise.

And irrevocable letter of credit is one which can not be altered or canceled once it has been negotiated between buyer and his bank.

A document issued by the bank at buyer’s request in favor of a seller promising to pay an agreed amount of money upon receipt by the bank of the certain documents within a specific time.

The date upon which a draft or acceptance becomes due for payment. All countries having these designations receive equal treatment respect to customs and tariffs.

Gulberg Fashion is a well reputed organization in Sialkot city which is involved in exporting its products to many countries of the world. It is recommended to start internship with Gulberg Fashion because of the supporting environment of the organization. People are the building block of every organization so Gulberg Fashion is suitable for the internship.

There are lots of opportunities to learn practical knowledge in the different areas of a business and textile sector in Gulberg Fashion. Internship with Gulberg Fashion gives professional exposure of what we have learnt in the IBIT during our IBIT program.

1. ^{www.gulberg.com.pk}