Internship Report without F.S (3).docx

8/10/2019 Internship Report without F.S (3).docx

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Internship Report

On

Talon Sports Sialkot Private Ltd.

Submitted To:

Prof.Dr.Muhammad Ehsan Malik (Director General)

Submitted By:

Muhammad Nasir

BB09124

BBA (Hons) Finance

Session:2009-2013

University of the Punjab

Gujranwala Campus


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IN THE NAME OF ALLAH THE ALL ALMIGHTY THE ALL MERCIFUL


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Acknowledgment

By the Grace of Almighty, the most Merciful, the most Beneficial, Today

Im submitting my internship report, at the end of my first pragmatic

experience and Im glad to have it with Talon sports. Thirst of learning is

inside you and whatever the environment, if youre willing to learn you

do. Talon sports, I had new challenging, yet a perfect environment to

learn. My parents prayers and their teachings were always with me and

hereby Ill like to take this opportunity to show my gratitude to all those

who made my internship and adventures outwit.

Here Im from my professional and rather corporate environment of Talon

sports. I never knew what it all going to be.

Despite of the most hectic schedule talon sports management helped me so

much. Im really great full to the management for clarifying my concepts

and making me learn from great experience, whatever Im learn from

youll definitely help me in my upcoming study and the professional l ife

ahead thank you so much for being so corporative and so helpful every

time I hope Ive been up to your expectations.

In the end Ill like to thank all my other colleagues and all my other

fellows internees her and in branch, for their unconditional support and

help in making me learn in a good environment.


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TABLE OF CONTENTS

Sr.No. Particulars Page

No.

01 Exective summary ? 07

02 What is Company? 08

03 Types of Company? 09

04 Private Company? 09

05 Public Company?& Government Company? 10

06 Foriegn Company? 11

07 Limited & Unlimited Company? 12

08 Producer Company? 12

09 Company with a license? 15

10 Holding & Subsidry Company? 16

11 Provision affecting?

12 Limited liability Partnership?

13 Introduction of Organization?

14 Histroy of Organization?

15 Company Background?

16 Company Vission & Mission?

17 Company Management system?Major

18 Catalogues?

19 Management Hierarchy?

20 Body Structure of Organization?

21 Joint Body Designation?

22 Major Competitors?

23 Introduction to all departments?

24 Employee Management?

25 Major Managerial Plocies?

Social Policy?

Enviornmental Management Policy?

Customer Procedure Policy?

Fire Safety and Evoacuation Plan?


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Labor Management Policy?

Cargo Security?

Child Remedation Policy?

Custom Compliante Policy?

Wrap Compliante Manual Security?

Production Process?

Fotball Production Process?

Garments Production Process?

Shoes Production Process?

Fair Trade?

Fair Trade Premium?

Main Market?

Financial Analysis

Liquidity Analysis?

Current Raio?

Acid Test Raio?

Working Capital?

Time Interest Earned Ratio?

Debt Ratio?

Debt to Equity Ratio?

Debt to tangible Net Worth?

Profitability Analysis?

Net Profit Margin?

Return on Assets?

Return on Equity?

Return on Investments?

Return on Operating Assets?

Operating Income Margin?

Gross Profit Margin?

Total Assets Turnover?

Fixed Assets turnover?

SWOT Analysis?


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Internal Analysis?

External Analysis?

Role of HR Department?

Negative Aspects?

Strategies to Improve HR Department?

Improving Organization Culture?


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Executive summary:

It is the requirement for BBA Hons level to do an internship for 6 weeks in any

organization and it also an opportunity for me to get the practical knowledge from that

organization. For this purpose I visited different organizations in Sialkot and I found

that Talon sports sialkot is the only company in Sialkot which is different and unique

from the others organization, Hence I spent not only 6 weeks in Talon sports but also I

worked just like its employee here. I worked in different departments of Talon sports

during my internship period. The main purpose of internship is to develop the

management skill. Such skill not only created by theoretical knowledge but also a

practical experience is also needed. Although the six weeks internship program has not

fully developed these abilities but has at least given me know-how about market. It

enabled me to see the relevance and applicability of various tools and theories of

management in market. The main advantage to me is that I am the job holder of Talon

sports sialkot. This training has also given me awareness of the various career

opportunity available in the market. The work that I had done there is described in the

report.


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What is Company:


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TYPES OF COMPANIES

1. "Private company" is defined in section 3(1)(iii) of the Act and it means a

company which has a minimum paid-up capital of one lakh rupees or suchhigher paid-up capital as may be prescribed, and by its articles,

a. restricts the right to transfer its shares, if any;

b. limits the number of its members to fifty (50) not including

i.

persons who are in the employment of the company; and

ii. persons who, having been formerly in the employment of the

company, were members of the company while in that

employment and have continued to be members after the

employment ceased; and

c. prohibits any invitation to the public to subscribe for any shares in, or

debentures of, the company; and

d. prohibits any invitation or acceptance of deposits from persons other than

its members, directors or their relatives ;

Provided that where two or more persons hold one or more shares in a

company jointly, they shall, for the purposes of this definition, be treated as a

single member.


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2. "Public company" is defined in section 3(1)(iv) of the Act and it means a

company which

a.

is not a private company;

b. has a minimum paid-up capital of five lakh rupees or such higher paid-up

capital, as may be prescribed;

c.

is a private company which is a subsidiary of a company which is not a

private company.

3. "Government company"is defined insection 617of the Act and it means any

company in which not less than fifty-one per cent of the paid-up share capital is

held by the Central Government, or by any State Government or Governments,

or partly by the Central Government and partly by one or more State

Governments and includes a company which is a subsidiary of a Government

company as thus defined.

Shall apply to any Government company, only with such exceptions, modifications and

adaptations, as may be specified in the notification.


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4. "Foreign company" is defined in section 591 of the Act and it means a

company which

a.

is incorporated outside India and

b. has established a place of business within India.

Within 30 days of establishment of such place of business within India, the Foreign

Company is required to submit documents/details under section 592. Alterations and

changes in these documents/details are required to be notified within 30 days.

The provisions of Section 108C on restrictions of transfer of shares of foreign

companies, sections 118 (right to obtain copies of trust deed), 124 to 145 (registration of

charges), 159 (annual returns to be made by company), 209 (books of account to be kept

by company), 209A (inspection of books of account of company), 233A (power of

Central Government to direct special audits in certain cases), 233B (audit of costaccounts in certain cases), 234 to 246 (power of Registrar to call for information, etc.),

295 (loans to Directors), 297 (Boards sanction to be required in certain contracts in

which Directors are interested), apply to such foreign company.


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5. "Company limited by guarantee" is defined in section 12(2)(b)of the Act and

it means a company having the liability of its members limited by the

memorandum to such amount as the members may respectively undertake by the

memorandum to contribute to the assets of the company in the event of its being

wound up. Such company could be a "company limited by guarantee and not

having share capital" or a "company limited by guarantee and having a

share capital".

The Memorandum and Articles of Association of such companies are as perTables C and D of Schedule I of the Act, respectively.

6. "Unlimited Company" is defined in section 12(2)(c) of the Act and it means a

companynot having any limit on the liability of its members. The liability of a

member extends to the whole amount of companys debts and liabilities but the

member will be entitled to claim contribution from other members. The

Memorandum and Articles of such company is as per Table E of Schedule I of

the Act.

7.

"Producer Company" is defined in section 581A of the Act and it means a

body corporate having objects or activities specified in section 581B and

registered as Producer Company under this Act.


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Section 581B

1. The objects of the producer company shall relate to all or any of the

following matters, namely

a. production, harvesting, procurement, grading, pooling, handling,

marketing, selling, export of primary produce of the Members or

import of goods or services for their benefit.

Provided that Producer Company may carry on any of the

activities specified in this clause either by itself or through other

institution.

b. processing including preserving, drying, distilling, brewing,

vinting, canning and packaging of produce of its members.

c.

manufacture, sale or supply of machinery, equipment or

consumables mainly to its members.

d.

providing education on the mutual assistance principles to its

members and others;

e.

rendering technical services, consultancy services, training,

research and development and all other activities for the

promotion of the interest of its members;

f.

generation, transmission and distribution of power, revitalisation

of land and water resources, their use, conservation and

communications relatable to primary produce;


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g. insurance of producers or their primary produce;

h.

promoting techniques of mutuality and mutual assistance;

i.

welfare measures or facilities for the benefit of members as may

be decided by the Board;

j.

any other activity, ancillary or incidental to any of the activities

referred to in clauses (a) to (i) or other activities which may

promote the principles of mutuality and mutual assistance

amongst the members in any other manner;

k.

financing of procurement, processing, marketing or other

activities specified in clauses (a) to (j) which include extending of

credit facilities or any other financial services to its members.

2. Every Producer Company shall deal primarily with the produce of its

active Members for carrying out any of its objects specified in this

section.


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8. Companies with licence under section 25

1.

Where it is proved to the satisfaction of the Central Government that an

association

a.

is about to be formed as a limited company for promoting

commerce, art, science, religion, charity or any other useful

object, and

b. intends to apply its profits, if any, or other income in promoting

its objects, and to prohibit the payment of any dividend to itsmembers, the Central Government may, by licence, direct that the

association may be registered as a company with limited liability,

without the addition to its name of the word "Limited" or the

word "Private Limited".

2.

The association may thereupon be registered accordingly and on

registration shall enjoy all the privileges and (subject to the provisions of

this section) be subject to all the obligations, of limited companies.

Such companies are generally associations, clubs or chambers of commerce.

The Central Government has conferred powers under section 25(6)to exempt or

modify certain provisions of the Act in relations to such companies.


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9. Holding & Subsidiary Company

According to Sec. 2(19) "holding company" means a holding company within the

meaning of section 4 of the Act;

According to Sec. 2(47) "subsidiary company" or "subsidiary" means a subsidiary

company within the meaning of Section 4 of the Act.

Sec. 4of the Act states,

1. For the purposes of this Act, a company shall, subject to the provisions

of sub-section (3), be deemed to be a subsidiaryof another if, but onlyif

a. that other controls the composition of its Board of directors; or

b.

that other

i.

where the first-mentioned company is an existing

company in respect of which the holders of preference

shares issued before the commencement of this Act have

the same voting rights in all respects as the holders of

equity shares, exercises or controls more than half of the

total voting power of such company;

ii.

where the first-mentioned company is any other company,

holds more than half in nominal value of its equity share

capital; or

c.

the first-mentioned company is a subsidiary of any company

which is that others subsidiary.


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Provisions affecting holding subsidiary relationship

a. Holding company as shadow Director (under Sec. 7)

b. Subsidiarys membership of its Holding company (Sec. 42& 372A)

c. Obligation on the part of holding company to furnish certain information

to its shareholders about the subsidiary e.g.Annual Accounts of all the

subsidiaries to be attached with the Annual Accounts of the holding

company (Sec. 212)

d. Financial year of Holding & Subsidiary Company (Sec. 213)

e. Rights of Holding Companys representatives & members (Sec. 214)

f. Investigation of the affairs of the Subsidiarys Holding Company (Sec.

239 & 247)


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10.Limited Liability Partnership (LLP)

It may be noted that LLP is not a Company under the Companies Act, 1956 but it is

defined under section 2(1)(n) of the Limited Liability Partnership Act, 2008 as a

"partnership formed and registered under the Limited Liability Partnership Act, 2008".

LLPs are bound to pay Income Tax under IT Act on lines similar to general

partnerships. They are not required to pay dividend distribution tax or surcharge.

11.Vanishing Companies (applicable in case of Public Listed Companies)

A Vanishing Company is one which has

Failed to file returns with Stock Exchange (if listed) & with ROC for 2

years.

None of the Directors are traceable.

Not maintaining the registered office at the address provided with ROC

& Stock Exchange.


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TALON SPORTS (PVT) LIMITED SIALKOT

Introduction of the Organization:

Since 1990 talon sports is one of Sialkot leading sports manufacturer organization..

Talons wide range of products include high quality soccer balls, volley balls, handballs,

sports uniforms, goal keeper shirts and gloves, shorts trousers and vests.

With a manufacturing faculty sprawled 200000 sq.ft with built in export and quality

control units, the company takes great care in manufacturing its product under the most

rigorous quality standard with the help latest equipment in sports industry

Talon is playing a major role in eliminating child labor from Sialkot under guidelinesset by the Atlantic agreement. The company outstanding performance in customer

satisfactions is reflected in its phenomenal growth of 100 % over the past five year. We

believe however that the best is yet to come as talon continues to strive for even better

quality for its customers worldwide.


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HISTORY

Since 1990, Talon sports is one of the Sialkots leading sports goods manufacturers.

Talon Wide range of product includes high quality soccer ball, wolly balls, hand balls,

sports uniform, goalkeeper shirts & gloves, shorts, trousers, and vests. With a

manufacturing facility sprawled over 200000sq.ft with built export and quality control

units, the company takes great care in manufacturing its products under the most

rigorous quality standard with the help of latest equipments in sports goods industry. It

is private limited by share and incorporated under the companys ordinance 1984.The

name of owner is chaudhary saleem Baryar.The Company is principally engaged in

manufacturing and export of high quality knitted garments and sports ball to the world

and sports companies. Talon as a Pakistanis first ISO 9001 certified Sports Company

producing 100% balls under ILO Monitoring. It maintains a vast production capacity

and quality according to FIFA standards and as per specific requirements of its clients

on the globe.. Talon sports are certified by the Fair-trade certified labeling organizations

international (FLO) in 2002 and now supply Fair trade certified markets in Canada, UK,

Italy and Germany


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Company Background and Present Status:

Pakistan supplies around 70% of the worlds footballs, with an estimated 44,000 men

and women stitches in the Sialkot region of Pakistan involved in the production of 35

million footballs every year. International campaigns in the 1990s have succeeded in

virtually eliminating child Labors by gradually moving production away from home

based stitches to independently monitored stitching centers and providing constructive

alternatives for children such as basic education and skills training. The centers are

operated by the main factories orby subcontractors and are segregated by gender to

comply with religious and cultural values. However, low pay and a lack of social

benefits remain issues for workers in the industry.


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Company Vision:

The Vision of Talon sports company to work with utmost devotion and boast

up the standard of sports good with in flinching efforts in challenging conditions and

situations

Company Mission:

The mission of Talon Sports Company is to provide society with superior

products but developing innovation and solution that improve the quality of life and

satisfies customer need, and provide to employees state of the art opportunities to grow

and compensation.

Company management system:

Product line:

Footballs

Basketballs


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Rugby balls

Gloves

Garments

Shoes

Socks

Protective equipments

Knit wear

Business Type:

Manufacturer, Trading Company, Buying Office

Manufacturing:

Manufacturing is the production of goods for use or sale using labor and machines,

tools,chemical and biological processing, or formulation. The term may refer to a range

of human activity, from handicraft to high tech, but is most commonly applied to

industrialproduction, in whichraw materialsare transformed intofinished goodson a

large scale.

Trading Company:

Trading companiesarebusinessesworking with different kinds ofproductswhich are

sold for consumer, business or government purposes. Trading companies buy a

specialized range of products, maintain a stock or a shop, and deliver products to

customers.

Market Share:

They do imports and exports mainly. they make products when they

received orders from their customers, as they do not have any brand under which they

work, so their market share cannot b estimated.

Capital Investment:

Talon sports initial capital investment was 5millian rupees.
http://en.wikipedia.org/wiki/Machinehttp://en.wikipedia.org/wiki/Machinehttp://en.wikipedia.org/wiki/Toolhttp://en.wikipedia.org/wiki/Toolhttp://en.wikipedia.org/wiki/Handicrafthttp://en.wikipedia.org/wiki/Handicrafthttp://en.wikipedia.org/wiki/High_tech_manufacturinghttp://en.wikipedia.org/wiki/High_tech_manufacturinghttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Finished_goodhttp://en.wikipedia.org/wiki/Finished_goodhttp://en.wikipedia.org/wiki/Finished_goodhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Customerhttp://en.wikipedia.org/wiki/Governmenthttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Product_%28business%29http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Finished_goodhttp://en.wikipedia.org/wiki/Raw_materialhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/High_tech_manufacturinghttp://en.wikipedia.org/wiki/Handicrafthttp://en.wikipedia.org/wiki/Toolhttp://en.wikipedia.org/wiki/Machine


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Catalogues:

1. 1 Shoes

2.

2 Apparel

3.

3 Balls

4. 4 Knit wear

1 Shoes:

1. In shoes department they made 4 different type of shoes categories:-

2. A casual

3. B canvas

4.

C safety

5.

D official

2 Apparel

1.

In apparel department they made 2 different type of shoes categories:-

2. A Team wears

3. B Casual wears

Capital Investment:Talon sports initial capital investment was 5millian rupees.

3 Balls

A Footballs

B Volleyballs

C Rugby balls

D Basketballs

E Butyl & latex


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F Bladders

4 knit wear

A Gloves

B Kung fu

C Uniforms


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Organization structure:

ChiefExecutive


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Joint Body

Designation

Tanveer Ahmed

Mr Tanveer Ahmed is president of Talon Fair Trade Workers Welfare Society since

2009.He is worker in Talon Sports Factory (Bladder Department)Since 1998.He is


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worker Representative in joint body as per FLO guidelines

Shahid Cheema

He is Vice president of Talon Fair Trade Workers Welfare Society since 2009He is a Supervisor in Talon Sports (Garments Department) since 1999.

Assad Bajwa

Assad Bajwa is General Manager of Talon Sports since 1997. He is management

representative as per FLO guidelines. He is Seceratery General of Joint Body of Talon

Fair Trade Workers Welfare Society since 2006.

Ch. Nasir Iqbal Baryar

Ch. Nasir Iqbal Baryar is Director of Talon Sports Factory. He is Member of Talon

Fair Trade Workers Welfare Society

Ch.Ansir Iqbal Baryar

Ch.Ansir Iqbal Baryar is Director of Talon Sports Factory. He is Member of Talon Fair

Trade Workers Welfare Society

Zahida Parveen

Zahida Parveen is a football stitcher in Chak Gillan stitching center since 1999.She is

Member of Talon Fair Trade Worker Welfare society.

Bushra Parveen

Bushra Parveen is a football stitcher in Chak Gillan stitching center since 1999.She is


Mohammad Yousaf

Mohammad Yousaf is male football stitcher of Talon Sports stitching center inside the

factory. He is a member of Talon Fair Trade Worker Welfare society.

Rizwan Majeed

Rizwan Majeed is a male worker in Talon Sports factory in Shoes Department. he is


Miss.Samra


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Miss Samra is a worker of Talon Sports factory in Shoes Department. She is Member

of Talon Fair Trade Worker Welfare society.

Mohammad Javed

Mohammad Javed is a Football Stitcher in Dheera Sandha Stitching center.He is


Major Competitors:

There is many more companies to challenge the talon sports. Every company tries to

make good product from others. They had much big competition between them. Some

of the challenges companies are.

Silver star

Penna over sees sports

Forward sports Awam sports


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Hilbro sports

Introduction of All Departments at organization.

The following departments presently working at this organization are names are as

under.

There are 17 departments in the organization. and there are 507 no of employees

in the organization.

Department Name No of employees

BOD (Board of director) 05

Management 19

Finance & Accounts 05

General services 42

Security 14

Information technology 01

Export 05

Import 01

HR 05


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Stores & procurement 20

Soccer production 35

Bladders production 04

Garments production 217

Shoes departments (safety) 30

Shoes production(canvas) 57

Shoes production (kungfu) 34

Production martial arts 13

Total 507

Talon employees Computer software of organization.

Employee management

Time and attendance

Loans and advances

Payroll

Transport

Reports

Overtime

Shift scheduling

Total personal data of organization are saved in this software.

In employees management there are many more options.


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Employees management:

Employees

Link designation

Employee facility

Employee deductive

Employee allowance

Employee leave

Employee salary allowance

Short leaves

Late coming employees

Early coming employees

Employee search

Block employee

Employee full n final

Employee file

Unblock employee

Change type

Time and attendance

Leave categories

Holidays

Employee attendance

Daily attendance

Hand geometry

Short leaves process

Short leave approval

Loans and Advances

Loan categories

Loan requests

Loan approval

Pre payments Advance request


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Advances approval

Payroll

Salary

Facility

Allowance

Taxes

Shifts

Salary structure

Deductions

Reports

Major Managerial Policies:

SOCIAL POLICY

TALON SPORTS is committed to establish and maintain a

Social System(based on requirements of SA-8000:2008 standards)

to ensure compliance with legal, ethical and social obligations

towards employees, customers and society through following

coordinated efforts.

We condemn child labor

We condemnbonded labor/forced labor

Healthy and Cooperative working relationship among employees and employer

Encourage freedom of association and employees participation at all

level. We condemn discrimination on any ground.

Ensuring applicable requirements of local rules / regulations

Applying national / international recommendation / guidelines for

employees betterment


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We provide all the benefits, allowances to our workers as defined in

local laws/rules

Director

TALON SPORTS ENVOIRONMENTAL MGT SYSTEM

PROCEDURE

1. SCOPE

This procedure covers the talon Sports production operations and related commercial

and technical activity.

2. RESPOSIBILITEY

Enforcement of environmental system in Talon is the Direct Responsibilities of

top management and subordinate departmental heads and production process

owners.

3. PROCEDURES

Talon Sports is implementing environmental management system it has anenvironmental policy and has conducted environmental aspects and their significant


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impact analysis. (Detailed sheet attached)

3.1 Environmental significant impact analysis has identified the following areas

for complains action.

(i) Noise pollution control

(ii) Emission control

(iii) Waste management (a) Solid (b) liquid

Waste (iv) Energy conservation/pressure

conservation (v) Chemicals Handling& Smell

control

A rise analysis and hazard identification survey was conducted the result

3.2 Noise Pollution Control

Risk analysis and hazard identification study /analysis was conducted and areas

identified with different noise levels as corrective actions ear plugs & ear muffs as

personal protective equipment is issues to employees in affected areas free of cost and

noise pollution monitoring is being dun at regular intervals.

3.3 Emission Control

There are two main areas of Emission

(a)BOIR

b) JENRATOR

(c) CANTEEN KITCHEN

Through the emission is with in safe range periodic monitoring in being

conducted to ensure that the equipment performance is with in safe operating

range.

3.4 Waste Management

(a)Solid Waste


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Solid waste is generated in the following areas /processes

(i) Knitting (Commercial) Paper Cones, pocha yarn, reject ferric

(ii) Dying Commercial Reject Fabric

(iii) Cutting Large Waste-Roll ends body parts-Small Wastetable cutting

(iv) StitchingTrimmings, rejects garments

(b) Other Solid waste generated is

(i) Reject Cartoons

(ii) Reject Polly bags

(iii) Rejects /Let overs of stitching thread cons

(iv) Empty plastic chemical containers

(v) Mettle Waste (Used Mattel Parts, Oil Filters, Metal empty Containers

All solid waste is disposed of throwing contractor for recycling and ruse .it is ensured

that all waste disposed of is not allowed to contribute to environmental degradation by

the contractors.

(c) Liquid Waste

In Talon there is no dying department since dying is totally done commercial there

for there is no effluent treatment required.

(d) Sanitary Liquid waste is disposed of properly after treatment.

(e) Resource conservation/energy conservation awareness is generated through

training to inaccurate habit of energy /recourse conservation.

Chemical Handling /spills

Chemical handling is restricted to individuals in store /Departments who useprotective equipment and spills are monitored and handled in a safe practicespills

are treated as per their data sheets (MSDS)

3.5 OIL/GREASE/DIESEL

Drained oil of all machines/vichels is collected and disposed of heating /kitchen

burners. Entry of pollution buses /trailers in to the factory is restricted to discourage

environmental degradation through pollution emissions.


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GOVERNMENT OF PAKISTAN

COLLECTORATE OF CUSTOME AND CENTRAL EXCIS

GUJRANAWALA

C.NO.11(22)16_MISC/SMB/94/560

DATED 10-1-99

STANDING ORDER NO.01/99

SUBJECT: REGULARIZATION OF EXPORT PROCEDURE

In order to streamline the procedure relating to export of goods at Symbrial dryport and to

provide necessary safeguard against any fraudulent clearance misuse of the facility ,following detailed procedure is prescribed which will be sumetly followed by the

exporters ,their clearing agent, the customs staff and Sambrial Dryport Trust Authorities.

The exporter/Clearing Agent will file nine copies ..

Extra copy will be accepted. If shipping bill consists of more than copies. The extra copies

will be detached and returned to the customs clearing agent.

As soon as the vehicle carrying goods meant for export enters the dry port premises in

specified hours i.e. between 9.00AMto3.00PM, following particulars of the vehicle and

consignment loaded thereon will be entered in the entry register by the customs Inspector

posted at dry port gate

Custo

ms/

Entry

No

Vehicle

No.

Contain

er

Size/Ty

pe

LCL/PC

L

Name and

address of

the

Exporter

.Descrip

- tion/

Nature

of goods

.No of

cartons/

package

s

baled

declared

.Country

of dest-

nation

.Name

of

clearing

agent

.Sign

of

clea-

ring

Agent.

Exi

Da

Wi

S/B

NO

dt

An

Ve

cle


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No vehicle will be allowed to enter port area if the consignment loaded on it does not bear mark

and No. or from E No. and airway bill number.

After verification and entry of aforementioned particulars of the incoming consignment, th

custom Inspector at the gate will stamp PASSED IN FULLon all the copies of shipping bi

and allow the vehicle to go to the relevant shed in the dry port.

Dry port..

6 The goods will be off loaded in the presence of shed incharge of samberial Dryport Trust

will affix his signatures and stamp on original shipping bill and enter the particulars of

vehicle/consignment in the Cargo receipt Register maintained by them. Consequently incharge o

export entry section shall prepare a list of shipping bills received in the section indicating the all

numbers to such shipping bills. The list shall be randomly verified by the Assistant Collector a

received shipping bills sent to the computer section for marking. The first computer marking sha

completed by 10.OO AM/ further followed by following lists with an interval of one hour ti

export consignments received on the port are endorsed in the entry section, computer marking

and consequently marked to the respective examining officers. The marking of the shipping

shall be strictly done through computer and no discretionary power shall be exercised at either

of the officials working in the export sections including the supervisory tier.


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ROLE OF THE EXAMINING OFFICERS

7 After shipping bills have been computer marked to the examining officer, he shall selec

at least 20% of the cartons of the export consignment at random and shall make 100%

examination of these cartons. The examining Inspector will also intimate the shed incharge o

the Sambrial Dryport about examination. The examination report

shall be endorsed on the reverse of the shipping bill keeping in view following factors:-

i) Examination to be conducted keeping in view the declaration of the

exporter/clearing agent.

ii) Weight of the consignment. iii)

Declared quantity.

iv) Detailed description of the goods including quality, size, nature

Of raw material used, apprehension of drug trafficking, brand name

Use of bank guarantee material with specific reference to the bill of entry vides whic

the bank guarantee material was imported.

v) Admissibility of rebate in accordance with SRO.

vi) Any other angle relating to the examination and intellectual property rights.

In case, the consignment is found as per declaration, the examining inspector will make a repo

this effect on the reverse of shipping bill as well as on the cargo receipt register maintained by

Sambrial Dry port Trust authorities. How ever, in case of some discrepancy, he will enter his

Observations in red ink on the shipping bill as well as in cargo receipt register.


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9 After completion of the examination report, on reverse of shipping Bill Inspecto

examination shall refer the shipping bill to his respective deputy superintendent incharge wh

shall select 10% of the cartons including those all ready examined by the Inspector at random

and examine the same as per the parameters described above. Deputy superintendent sha

also give specific emphasis to the element of drug trafficking and shall visualize the whol

consignment from that angle keeping in view the profile of the exporter/ clearing agent. In cas

the consignment is found as per declaration, the examining inspector will make a report to thi

effect on the reverse of shipping bill as well as on the cargo receipt register maintained by th

sambrial Dryport Trust authorities. How ever, in case of some discrepancy, he will enter hi

observations in red ink on the shipping bill as well as in cargo receipt register. The shipping bi

will then be submitted to the superintendent for let export who shall allow the let export o

his due satisfaction regarding the proceedings already completed and may make discretiona

check if so required and will then be handed over to customs clearing Agent.

10. In case of containerized consignments, the same shall be examined by the superintenden

Export himself keeping in view all the angles of examination and in case of a consignmen

loaded in 40 feet container the shall be examined by the Assistant Collector Export himself. Th

Assistant Collector Export shall also make at least, to visits to the export sheds daily fo

over all supervision of export examination and random checking of the consignments alread

examined by export section

.


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11. In case of consignments, where the bank guarantee material has been used endorsed

examination report shall be routed up to the level 0f Assistant Collector Export and then the

shipping bill shall be sent to the Assistant Collector bank Guarantee who shall depute an

inspector from the bank guarantee section for physical verification of the bank guarantee

material in accordance with the representative sample detained in the bank guarantee file.

Bank Guarantee inspector, after making due verification, shall endorse his report of

verification both on the shipping bill and on the note sheet side of the bank guarantee file

regarding quantity and description of bank guarantee material to be re-exported in the under

reference consignment. His report shall be approved by the Assistant Collector bank

guarantee section and consequently the shipping bill shall be sent back to the section for

further necessary action.

12. There shall be two loading inspectors, deployed by the export section,under whose

supervision, invariably, all the export consignment shall be loaded on the containers and

duly sealed in their presence. The sealing process shall be kept under close watch by the

loading inspector.

13. One Inspector Customs will coordinate with documentation department of Dry port

Trust to confirm/ verify the documents received there. he shall consult the cargo receipt

register and after his satisfaction about genuineness of the consignment, affix his stamp

"allow loading" on the shipping bills.

14. No permission to change container will be granted after the consignment has been

examined by the Customs staff. All such requests would be made to the proper officer

of Customs before examination-of the consignment.

15. Examination/Loading of goods will he completed by 6.00PM and dry port gate will

be sealed be customs/Sambrial Dry port trust latest by 7.00PM.

16. For exit of export consignment, Sambrial Dry port Trust issues export summary, convey

Note, and manifests which are attested by inspector loading and operation Manager of

Sambrial Dry port Trust. The Deputy Superintendent/ Inspector incharge of outer exit gate of

the dry port, will examine these documents carefully, satisfy himself about their genuineness

and after entering the particulars of me consignment in the relevant register affix the

PASSED OUT stamp on summary and convey note with his signature and allow exit of

goods.


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FIRE SAFETY&EVACUATION PLAN

1. Scope: Head Office/Factory and Factory Units of Talon Sports (Pvt) Ltd., Sialkot.

2. Purpose: To Establish and maintain Fire Safety and Evacuation Plan to control fire and

incidents

3. Responsibilities

1. Managers

2. Department Heads

3. Shift Supervisors

4. Security Guards

5. Floor Cleaners

6. Helpers

For the purpose of fire and evacuation the different Deptt. are divided into the following Sub

Sections:-

1. Cutting / Embroidery

2. Stitching / Packing

3. Shoes & Gloves

4. Production Soccer

5. Store & Ware Houses

6. Offices

All employees have been instructed to assemble outside the premises on the road (ASSEMBLY

AREA) in case of fire / evacuation. They will wait for instructions from Admin Officers and act

accordingly.


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4. FIRE FIGHTING&EVACUATION

On the out break of fire, very first person, who will see the spark, will try to put the fire off and

start shouting. " Fire, Fire, Fire......" Admin Officers / Shift Supervisors will blow fire Alarm

(Both Electric & Bell) and evacuation will start. Workers will leave the Departments from the

gates without creating any panic. In about 2 minutes time the Deptts. will be evacuated.

In-charge Generator room will Switch off the power and cut electric supply, only emergency lights

will be on. Sufficient number of fire equipments (Extinguishers, Sand and Water buckets etc.) have

been fixed and provided

in the Deptts. as per required standards. Regular training is imparted to handle and operate these

equipments. Emergency Exits are marked and workers are aware of these places. Production floors

are non-smoking areas and open smoking spaces are out side Production Areas.

5. FIRE FIGHTINGTEAMS

Managers Admin will be over all co-ordinator for the execution of Fire, Safety and Evacuation

Plan. Admin Officers are nominated as fire and safety in-charge and will work under the

guidance of Managers Admin. To fight and extinguish the fire following parties are nominated:-

1. Fire Fighting Party

2. Fire Picketing Party

6. FIRE FIGHTINGPARTY

On the out break of fire this party will rush to the place of fire and will extinguish the fire. They

are trained in the use of fire Equipments. Shift Supervisors on duty will be incharge of this party

and duty Security guards will assist him. Rest of the Admin Staff will rush to Shift Supervisor and

help him as per his instructions. In case more men are required, Admin Officers will call workers

from the Assembly Area for the assistance of Shift Supervisors.


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7. FIRE PICKETINGPARTY

This party is responsible for the protection of fire effected area to avoid any theft and

pilferage of material. Dept. Heads will nominate a person who will cardon the areas and

not allow any body to enter, or remove any thing from the site. If fire is brought under

control, by own staff and there is no damage to the factory, Admin Officer will again

blow the all clear Hooter and normal work will start. However if the fire is beyond own

Control, help will be sought from local / Municipal sources. Managers Admin will decide

to take help from outside or vice versa. Important Tel. numbers are as under; Fire Brigade

Sialkot -16

8. GENERAL

Fire practice and Evacuation Drill is carried out quarterly and proper record is maintained

by Admin Officers. To avoid fire and for better environment, following steps are taken :-

8.1Smoking is not allowed at the Shop Floor and separate areas are provided

for smoking.

8.2.Generator Room is out of bound for operators and workers. Only

Electricians and Maintenance staff is allowed to go in the workshop and

Generator Room.

8.3.Electric Panel and Circuit Breakers are covered and only authorised

persons are allowed access to these.

8.4.White Patrol and other Chemicals are kept at secured places from where

only required quantity is issued / drawn for the use.

8.5 At the close of Shift and Break time all lights are switched off and

Supervisors ensure that no machine / motor is left on.

8.6.All fire equipments are tested and kept in serviceable condition all the

times. Each fire Extinguisher has a card attached to it which is initialed by

AdminOfficers every month. In case any equipment develops some fault or

require replacement, it is got repaired / refilled / replaced.


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9. MEDICAL

First Aid boxes with necessary medicines are provided on the floor. Security Staff is trained to

give first aid. However serious cases are shifted to the nearest Hospitals.

10. ACCIDENTS

All accidents and incidents of Fire / Injuries, may be small or big, are recorded in the Medical

Log Book, Maintained by Admin Officers. Minor injuries are ignored and major cases, if any, are

investigated and remedial measure are suggested to avoid reoccurrence.


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LABOUR MANAGEMENT GRIEVANCE

1.0 PURPOSE

The purpose of this procedure is to establish a labor management grievance

procedure to mitigateworkers complaintsand redress their grievances.

2.0 SCOPE

This procedure applies to Talon Sports (Pvt) Ltd.,

Sialkot

3.0 REFERENCE

WRAP principle "Freedom of Association and right to Collective

Bargaining".

4.0 RESPONSIBILITY

The compliance officer is responsible for establishing and control of Suggestion &

Complaint Box and Labor Management GrievanceCommittee.

5.0 ROCEDURE

5.1 COMPLAINT AND SUGGESTION

BOX

Compliance officer will establish a reasonable number of suggestion and complaint

boxes to receive complaints and suggestions from the workers and will collect the

suggestions and complaintsperiodically and put up to management for their review

and resolutions to ensurebetter labor management workingrelations.

5.2 LABOR MANAGEMENT AND GRIEVANCE

COMMITTEE

Compliance officer will hold a monthly meeting with the representatives of workers and

discuss with them grievances if any which need resolution by discussion with the

management. He willput up the grievances to management and seek mitigation oftheir grievances with mutual discussion.


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CARGO SECURITY

1:0 PURPOSE

The purpose of this procedure is to establish a secure Cargo ProtectionSystem to ensure security against contamination by terrorist, drug interdiction

and customs compliance.


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TALON

production quality in physical examination of the security of the facility and reporting incase

of

a)

In-adequate security measures so that the matter is brought to the notice of the

factory management.

b)

Corrective /remedial measures are initiated if any inadequacy is noticed.

5.3.3

QA auditor is responsible for checking that all cartons are being properly sealed at the time

of

a) Daily internal audit

b) Pre-final audit

c)

Final audit

5.4 MANAGER STORE

Manager store will ensure security of sealed cartons while they are in the store and will

ensure safety against tempering by un-authorizedperson while they are under store custody.

He will also exercise control through his storekeeper for proper receipt and issue of cartons as

per Store's Procedure

5.5 MARKETING DEPARTMENT

5.5.1

Manager Marketing / Respective Account Manager will ensure that "Cargo Lifting

Advice to the Inland Carrier provides receipt of Quantity of cartons identified by marks

and numbers that they received from the factory for delivery to the Consolidator or

International Carrier.

5.5.2 The inland carrier will also provide the receipt from the Consolidator or the International

Carrier that he has received the quantity of cartons identified by marks and numbers in a

sealed condition.

5.5.3

The Inland Carrier will provide a receipt along with his bill that there was no difference inthe quantity of cartons handed over to him by the factory

and those he further transported to the Consolidator or the International Transporter.


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6.0 General Safety Precautions

a) Unauthorized access to cargo areas is prohibited

b)

Visitors are strictly controlled by gate security. Visitor Pass System is

implemented.

c) Visitors records or logs kept by security staff

d)

Employee identification system is strictly checked by security

e)

Cargo lifters display their identification at the time

of cargo lifting.

7.0 RELATED DOCUMENTS

- Inter Department Goods Transfer Note

7.0

ESTABLISHING CONTAINER LOADING BAY

7.1 Each shipment loading will be Video Monitoring to ensure shipment cargo proper

loading and video monitoring for record keeping purposes. the video records will be

maintained for back reference

check if required by the buyer for minimum of 03 months or till cargo is

received at the destination.

8.0

personnel Employees working in sensitive areas such as finishing/packing and

Security shall be subjected to back preference checks at the time of engagement and

subsequently period/interval of checks to be established by the relevant departments.

9.1

CONTAINER CHECKING AND SEALING ARRANGEMENT.

9.1 at arrival each container will be completely checked for total emptiness and

free from any objectionable material.

9.2

After loading the cargo the containers gates will be secured properly and

sealed.9.3 Seal control process will be observed and controlled .

9.4Seal will be kept and secured by export department and no

authorized person will be allowed access to it.


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CHILD REMEDIATION POLICY

Talon Sports (Pvt) Limited does not use child labour. We don't employee personnelunder 18 years on either contract of full time job. We also ensure "No Child labour" in

our supply chain. In case an individual under 18 years found working full time in our

supply chain, we categorize him/her and provide remediation as per procedure.

Responsibility:

Internal Monitoring Department and security.

Procedure:

Internal Monitoring Department in coordination with Time Office and Security ensures

the implementation of Company's Policy to employee adult labour. And monitor will

ensure that proof of age for all employees is being maintained in their files. During

monitoring if a person is found under 18 years. It will be categorized as:

Being 15-18 years Category A

Being under 14 years Category B

For Category A, young worker(s) will be enrolled in nearest non formal education

center being operated under CSDO(social arm of Sialkot Chamber of Commerce) andduration of course will be intimated to HRD for follow up and monitoring.

Upon completing 18 years such workers could be employed subject to fulfilling other

employment conditions.

For category B, worker will be removed from work and be enrolled in a formal

education center near to his/her residence and intimated to HRD for follow up and

monitoring for retention in school.

Financial resources for both categories will be put up in Grievance Committee and will

be utilized for remediation of Child/Young worker up to completion of basic

compulsory education/attaining 18 years of age. Progress will be shared in quarterly

meeting of Grievance Committee.


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CUSTOM COMPLIANCE

Purpose

To establish and maintain a documented system to establish compliance with

applicable custom laws and regulation and to make sure that all the required documents

are made and kept in record.

Scope

All the shipments that are sent abroad Pakistan

Responsibilities

General Manager /compliance officer is responsible to carry out the activities in accord

ness with this procedure.

Procedure

5.3 Compliance officer checks documents comprises of (Order Sheet Performa

Invoice, Cutting Record, Stitching Record, Cropping Record, Final Checking Record,

Packing Record, Shipping Documents, LC Copy Packing List, Bill of Lading/Air Way

Bill)for every shipment and keep its separate file, as per order and get it approved by

General Manager before delivery of the shipment.

5.4

Compliance officer keeps up date the equipment inventory files and up date it

accordingly in case of any addition and deletion. The list is reviewed and signed by GM

upon every edition/deletion.

03. Compliance officer keeps the Handling, Storage, Packaging and Delivery form

updates for every shipments and get it signed by General Manager before departure of

shipments.


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WRAP COMPLIANCE MANUAL

SECURITY

Purpose

To establish and maintain a documented system to establish and ascertain that the

entire production facility is guarded and control so that the consignment is delivered

safe with out introduction of illegal shipment of Drugs explosive,bio-hazards and other

contraband.

Scope

All the shipments that are send a broad Pakistan

Responsibilities

General Manager/Compliance officer is responsible to carry out the activities in

accord ness with this procedure.

Procedure

4.1

General Manager issues job descriptions to security guards in order to prevent

entry and exit of any irrelevant materials especially Drugs, Explosive, bio-hazards

and other contraband.

4.2

Time office in charge issue Gate passes to every visitors and write details of the

same in a register. All The entire Visitors card with number that is to be deposited

back to the time office in charge upon departure.

4.3

General Manager makes sure that none of the visitors goes around the facility or

enters any department with out official notification.

4.4 General Manager makes sure that all the employees wear identification tags until

they leave the facility.

4.5

General Manager makes sure that strong individual and company wide referenceshave been made available before hiring any security guard appointing

clearing/Forwarding agent contracting shipping company and all relevant

personnel in this very regard.


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WRAP COMPLIANCE MANUAL

ENVOIRMENT

Purpose:

To establish and maintain a documented system to operate in an po free manner via

following all applicable environmental rules, regulation standers and to observe

invoirmentley conscious practices at all in the premises.

2.0 Scope:

Entire premises of the company.

3.0 Responsibility:

General Manager/Compliance officer is responsible to run to operations in the

erspective of this procedure.5.3.4 Procedure:

a) Compliance Officer makes sure that all the personnel whose job real the

envoirmentley concerned areas are aware of there responsibilities.

b) compliance officer make sure that all at he corresponding tests have been under

taken in the perspective of applied NEQS environmental quality standards )and

records are kept in separate

c) compliance officer makes sure that the procedure for preparedness and response

is available and all the workers have been to play there part in case of any emergency

related to accidental..hazardous chemicals.

d)

Compliance officer keeps a copy of agreement for utilizing of solid ..

e) Compliance makes sure that entire facility full fills all its requirements and run with

the concept of an environmental UNIT.

Related References:

Industries and factories Act 1934Chapter III (14) NEQS


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Production Process:

Process of Football Production

Design Panal:

Desigin Panal selects the specific design to be printed on the football.Design may

be a logo of the company or trade marks.

Cutting:

After designing come the cutting procedure. At this stage the whole patteren or design

is cutt of in small pieces.

Printing:

This stage contains printing of selected design on the pieces. Different parts of the

whole design an printing on the pieces.

Stiching:

Printing pieces are stiched at this level.The visibility of design is maintained in stiching

procedure, so that after completion the football designful.

Quality Inspection:

After stiching the football is sent to inspection department.Which

inspects the balls according to specific crieteria.This procedure cheaks design Patteren, Printing

Standard, Stiching quality etc.Product fellfilling the standard selected for packing and others one

not.

Packing:

Products selected or passed by inspection department are packed at this stage.

Labeling:

The containers of products are labeled before distribution of the containers.


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Process of Garnment Production

Design Panal:

Desigin Panal selects the specific design to be printed on the garnment.Design

may be a logo of the company or trade marks.

Cutting:



Printing:

This stage contains printing of selected design on the pieces. Different parts of the

whole design an printing on the pieces.

Stiching:


procedure, so that after completion the garnment designful.


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Quality Inspection:

After stiching the garnment is sent to inspection department.Which

inspects the cloth according to specific crieteria.This procedure cheaks design Patteren, Printing


not.Packing:


Labeling:

The containers of products are labeled before distribution of the containers.


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Process of Shoes Production

Design Panal:

Desigin Panal selects the specific design to be printed on the shoes.Design may be

a logo of the company or trade marks.

Cutting:



Printing:

This stage contains printing of selected design on the pieces. Different parts of thewhole design an printing on the pieces.

Stiching:


procedure, so that after completion the shoes designful.

Quality Inspection:

After stiching the shoes is sent to inspection department.Which inspects

the shoes according to specific crieteria.This procedure cheaks design Patteren, Printing


not.

Packing:


Labeling:

The containers of products are labeled before distribution of the containers


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Fair trade:

TalonSports was certified by Fair-trade Labeling Organizations International (FLO) in 2002

and now supplies Fair-trade markets in the UK, Italy and Germany.

The objective of Fair-trade in the sports ball industry is to ensure good working conditions for

factory and stitching centre workers and to provide decent wages so that employees can

send their children to school rather than out to work. The additional Fair-trade premium is

invested in projects that support the empowerment and social development of workers and

stitches.

Although there is a government-set minimum wage for the sports ball industry in Pakistan,workers are often paid less and struggle to provide for their families. All Fair-trade certified

producers pay factory workers at least the minimum wage, and piece-work rates for stitches are

calculated so that the minimum wage can be earned within normal working hours. Talon Sports

pays its workers 50% more when they produce Fair-trade balls.

Fair-trade buyers negotiate a contract price with football producers in the same way as

conventional buyers, with the stipulation that the agreed price must be above the cost of

production. Fair Deal Trading, a UK company licensed to import and market Fair-trade sports

balls in the UK, sources from Talon Sports and has. Negotiated a contract price 20% higher

than the usual price. This enables Talon to pay their workers 50% more when producing Fair-

trade balls.


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Fair trade premium:

Ontop of the contract price, Fair Deal Trading pays the Fair-trade premium which is used to

fund social projects that benefit Talon employees. The premium, 10% of the contract price, is

paid directly into the bank account of the Talon Fair-trade WorkersWelfare Society, a joint

body of management and elected workers representatives, which decides on the projects to be

funded by the premium payments.The Fair-trade premium has been used to provide basic

health insurance, a first for workers in this industry. Eighteen-year-old Sameena Nyaz works

at a village stitching centre an hour from Sialkot where they stitch footballs for Talon

Sports. She recently needed a thyroid operation which would normally be a source of realworry as medical care is very expensive. But her treatment was paid for by the healthcare

scheme set up by the Welfare Society and funded by the Fair-trade premium.The Welfare

Society has also set up a micro credit fund so that workers and their families can take out loans

to set up small businesses so that workers can increase their incomes and reduce their financial

dependency on stitching Brothers Zulafkar Ali and Saftaz Ahmad, both stitches with young

families to support, applied for a loan to start a tea shop in the annexed of one of the stitching

centers. A couple of years later and the shopsmonthly turnover is as high as their original

loan, providing them with a good additional income. In fact the milk used in the tea is supplied

by a neighbor who purchased a buffalo with the help of a loan from the credit fund. The

brothers now want to take out a further loan so that they can expand their product

range to include convenience products and household items.Forty-five-year-old Mohammad

Riaz is pleased that he is now able to provide better for his wife and four children. His

main occupation is stitching footballs for Talon Sports, which gives him the opportunity to

increase his wages when stitching Fair-trade balls. But like most of his fellow workers he also

works the fields to supplement his income. He cultivates winter wheat and a main crop of rice

on his two hectares of land. A few years ago he took out a loan from the credit fund to help

pay for an irrigation pump. The next season he harvested a bumper crop of five tones which

he sold to the rice mill for 550. Further good harvests have allowed him to pay back the

loan, so replenishing the credit fund and making small loans available to his colleagues.


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Although only a small percentage of footballs produced by Talon Sports are Fair-trade

certified, it is clear that Fair-trade is having a positive impact on the lives of the workers.

And the extra income is contributing to economic development of village communities

around the stitching centers.

Main market of talon sports all over the world:

1. North America

2. South America

3. Eastern Europe

4.

Southeast Asia

5. Eastern Asia

6. Central America

7. Northern Europe

8. Southern Europe

Total Annual Sales Volume:

US$5 Million - US$10 Million

Export Percentage:

91% - 100%


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Specialization

Financial analysis:

Financial analysis is a process which involves reclassification and summarization of information

through the establishment of ratios and trends.

Analysis of financial statements.

It refers to the examination of the statements for the purpose of acquiring additional informationregarding the activities of the business.

The users of the financial information often find analysis desirable for the interpretation of the

firms activities.

Note:The financial statements to be used for he purpose of analysis should Audited ones. The

audited financial statements give the analyst the auditors statements as to whether the record

represent a fair view of the companys affairs.

A financial ratio is a relative greatness of two selected numerical values taken from and

enterprises financial statements.

1. Liquidity Ratio

The ability of a business to pay its short term debts.

2. Solvency Ratio

The ability of a business to pay its long term debts.

3. Profitability Ratio

The ability of a business to generate profits for its owner.

4. Activity Ratio


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The effectiveness of management towards Utilization of resources.

5. Market Ratio

The strength of a business to achieve the short term and long term objectives of the business.

Liquidity: The ability of a business to pay its short term debts.

Items involved :

Cash in hand

Cash at bank

Receivables

Stock

Prepayment

Year concerned:

Current year : 2012

Base year : 2011

RATIO ANALYSIS

Name of the ratio: =Current RatioFormula = Current assets/Current Liabilities

Year 2012 Year2011

=666465313/527924989

=1.26 Times

=812204148/601236139

=1.35 Times

Interpretation:


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Since current liabilities are usually paid out of the current assets, this ratio tell us that for every

single Rupee of current liabilities, how many current assets do the organization possess its shows

liquidity of the firm.

As per analysis current ratios goes on declining with the passage of time indicating that Talon

sports has lesser current assets to cover its current obligation whereas only in year 2011 Talon

sports was in position to fulfill its short term liabilities this downturn is due to lack of short term

investments, less stable cash position and repaid increase in trade and other payables.

RATIO ANALYSIS

Name of the ratio: =Acid test ratio

Formula = Current assets-Inventories /Current Liabilities

Year 2012 Year2011

=233573544/527924989

=0.44 Times

=271931605/601236139

=0.45 Times

Working: = Current assets-Inventories

For 2012: 666465313-432891769 =233573544

For 2011: 812204148-540272543 =271931605

Interpretation:

This ratio reveals true liquidity of current assets and excluding liquid assets inventories this ratio

helps gauging the solvency of the company as is actually tells that how many quick assets firm

possess to meet short term obligations like current ratio it also reveals a declining trend with the


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For 2012: 32574769-5570892 =27003940

For 2011: 34811917-5935118 =28876799

Interpretation:

Time interest earned reflects the ability of a company to pay its financial cost (interest) A

ratio2.15 (200%) shows that the company covers the interest charges 2times and generally

(400%) is consider as a satisfactory. A higher ratio is always more desirable especially for the

creditors.

Hence there was loss is being suffer talon sports due to economic problems (High Load shading

of Electricity and increasing prices in Units & Material Prices high Labor cost) in 2012 ascompare with 2011.

Leverage Ratios:

Name of the ratio: =Debt Ratio

Formula =Total debt/Total Assets

Year 2012 Year2011

=540228244/1430771915

=0.37:1

=613320852/1090312745

=0.56:1

Working: = Current Debt+Long term Debt

For 2012: 527924989+12303255 =540228244

For 2011: 601236139+12084713 =613320852


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Interpretation:

It is a commonly used ratio to measure the capital structure of the firm. From creditors point of

view, the lower the debt ratio, the better it is as it indicates more portion of s hareholders funds

in capital structure in 2011 as compare with 2012. A ratio greater than 66% to 100% is consider

alarming for the providers of funds. The results in table tell that the ratio reveals downtrend. It

was high (but in range) in 2011 then goes on diminishing in next years. Even in 2010 this ratio is

more convincing for creditors. This is due to sound position of talon sports assets.

Leverage Ratios:

Name of the ratio: =Debt to equity Ratio

Formula =Total debt/Total Equity

Year 2012 Year2011

=540228244/480930217

=1.12:1

=613320852/476991893

=1.28:1

Working: = Current Debt+Long term Debt

For 2012: 527924989+12303255 =540228244


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For 2011: 601236139+12084713 =613320852

Interpretation:

This ratio shows the portion of debt to equity in capital structure. Creditors generally like this

ratio to be high as it indicates high portion of shareholders funds in capital structure. Results are

low this is due to high portion of total debts in capital structure as compare to equity,is taken by

Talon Sports to meet the Firms Expensives.

Leverage Ratios:

Name of the ratio: =Debt to tangible Net Worth Ratio

Formula =Total debt/Tangible Net Worth

Year 2012 Year2011

=540228244/902846926

=0.59:1

=613320852/489076606

=1.25:1


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Working: = Tangible net worth=Total Assets-Liabilities-Intangible

For 2012: 1430771915-527924989-0 =902846926

For 2011: 1090312745-601236139-0 =489076606

Interpretation:

This ratio is the calculation of what is the net-worth of tangible assets against debts and give

identification about if liquidation takes place what would leave for residual claimants after

fulfilling external claims.The table shows that Talon sports has good position of tangible net-worth in 2011 against its

long term debts which is now in 2012 is unfavorable to fulfill its obligations in case of

liquidation.

Profitability: The ability of a business to generate profits for its owner.

Items involved :

Gross profit ratio

Operating profit ratio

Net profit ratio

Return on asset

Return on equity

Return on operating asset

Year concerned:

Current year : 2012

Base year : 2011

PROFITABILITY ANALYSIS:


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Name of the ratio: =Net Profit Margin

Formula = Net Profit/Sales*100

Year 2012 Year2011

=3938324/658105112

=0.59%

=19950003/644070016

=3.09%

Interpretation:

Thistells the percentage of profit for every Rupee of revenue earned.

The higher the ratio the better it is.

In year 2012, a loss occurs due to high cost of electricity and results is in the percentage of return

lesser than 2011. In the 2012 there was hyper increase in prices of electricity by the Government

of Pakistan resultantly turnover decrease due to cost of electricity. Thats why net profit is

decreases.

PROFITABILITY ANALYSIS

Name of the ratio: =Return on Assets

Formula = Net Profit after tax/Total Assets*100

Year 2012 Year2011

=3938324/1430771915

=0.27%

=19950003/1090312745

=1.82%


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Interpretation:

This ratio tells the profitability of the company for every Rupee of invested in total assets this

reflecting how effectively and efficiently the firms assets are used the higher the result, better it

is.

In year 2012, a loss occurs due to high cost of electricity and results is in the percentage of return

lesser than 2011. In the 2012 there was hyper increase in prices of electricity by the Government

of Pakistan resultantly turnover decrease due to cost of electricity. Thats why net profit is

decreases.


Name of the ratio: =Return on Equity

Formula = Net Profit after tax/Total Equity*100

Year 2012 Year2011


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=3938324/480930217

=0.81%

=19950003/476991893

=4.18%

Interpretation:

This ratio measures a corporations profitability by revealing how much profit a company

generates with money of shareholders have invested. A high return is always desirable.

Talon sports suffer a high cost of electricity sustain in 2012 which is result in negative figures. Inlast, year a handsome income boost up the ratio which are shown positive results. This is due to

high portion of total debts in capital structure as compare to equity,is taken by Talon Sports to

meet the Firms Expensives.



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Name of the ratio: =Return on operating Assets

Formula = Net Profit after tax/Operating Assets*100

Year 2012 Year2011

=37201831/764306602

=4.86%

=62238242/278108597

=22.37%

Working: = Operating Assets=All Non Current Assets

Interpretation:

This ratio grasp the management attention on the amount of assets actually required to run

business, so that organization has theoretical assets level to achieve.

A typical result of this measurement is and ongoing campaign to eliminate unnecessary assets

due to high cost of production of talon sports this ratio has in negative figure indicating that

operating assets are fully utilized.


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Name of the ratio: =Operating Income Margin

Formula = Net Profit after tax/Sale*100

Year 2012 Year2011

=37201831/658105112

=5.65%

=62238242/644070016

=9.66%

Interpretation:

Operating income margin is a measurement of what proportion of a companys revenue is left

over, before taxes and other indirect cost, after paying for variable cost of production, a good

operating margin is needed for a company to be able to pay for its fixed cost such interest on

debts.

A higher operating margin means that the company has less financial risk.


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Name of the ratio: =Gross Profit Margin

Formula = Gross Profit/Sale*100

Year 2012 Year2011=142365312/658105112

=21.63%

=170308424/644070016

=26.44%

Interpretation:

Gross profit margin is not an exact estimate of the companys pricing strategy but it does give a

good indication of financial health. Without an adequate gross margin, a company will be unable

to pay its operating and other expenses.

Figures for last 2 years shows that Talon sports has sound amount of gross profit to cover its

operating ,financial and other expenses.whereas,due to excessive cost of electricity, there was

decreases in figure.


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Activity: The effectiveness of management towards

o Utilization of resources

o To generate sale

o To collect its receivable

o To manage its operating cycle

o To manage its cash conversion cycle

Year concerned: Current year : 2012

Base year : 2011

Activity ANALYSIS

Name of the ratio: =Total Assets Turnover

Formula = Sale/Total Assets

Year 2012 Year2011

=658105112/1430771915

=0.45 Times

=644070016/1090312745

=0.59 Times

Interpretation:


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An effective use of total assets held by an organization is to ensure greater revenue to the firm

from table is evident that this ratio sustain over the years due to constant increase in both sales

and total assets.

Final result decreasing in 2012 cause of high cost of electricity and it is reveals that in future

TALON SPORTS has trend to generate greater sales volumes.

Activity ANALYSIS

Name of the ratio: =Fixed Assets Turnover

Formula = Sale/Total Fixes Assets

Year 2012 Year2011

=658105112/764306602

=0.86 Times

=644070016/278108597

=2.31 Times

Interpretation:

The Fixed Asset turnover ratio measures an organization's ability to generate net sales from fixed

asset investments. A higher fixed Asset Turnover ratio shows that the organization has been

more effective in using the investment in fixed assets to generate revenue.

This ratio indicates that TALON SPORTS has declining trend.

Sales as well investment in fixed assets improve with every incremental upcoming year.


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Market: The strength of a business to achieve the short term and long term objectives of

the business.

Items involved :

Internal factorDividend (controllable)

External factorMarket price (uncontrollable)

Year concerned:

Current year : 2012

Base year : 2011

Market Ratio:

As TALON SPORT is not listed company in any stock exchange. It is a Private owned

organization and did not pay any dividend. Its shares are not traded in stock exchange. Hence, its

Dividend per Share Ratio cannot be calculated. It is the portion of an organization's profit

allocate to each outstanding share of common stock. Earnings per share, is generally considered


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to be the single most important variable in determining a share's price. It is also a major

component used to calculate the price to earnings ratio.

AS said earlier, authorized shares are taken as outstanding.

Which is = 23000 ordinary shares of Rs.100 each.

Hence it is not a true picture for computation of earlier per share ratio.

Earning Ratio:

This ratio shows how much investors are willing to pay per Rupee of reported profits. This ratio

reflects price to earning ratio suggests that investors are expecting higher earnings growth in the

future.

As said earlier, per value of shares is taken as market value. Hence it is not a true picture for

computation of price to earning ratio. As the previous record indicates that random directions are

in different years. But actual story would be clear if actual market values are taken.


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Summary

By summarizing the above analysis we can say that the TALON SPORTS has a great strength ofits performance by exporting his product at Global level and generate high revenue because there

is a monopoly of TALON SPORTS and main weak point are political issue in its management

and the lack of electricity and the increase rate of electricity units, for the production of

electricity. Talon sports has great opportunity to expand his business growth by expanding his

target market at Domestic and International level.


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CHILD REMEDIATION POLICY

Child remediation policy

Talon sports (pvt) limited do not use child labor. We dont employee personnel under 18 year on

wither contract of full time job. We also ensure no child labor in our supply chain. in case an

individual under 18year found working full time in urea supply chain, we categorize hi,/her andprovide remediation as per procedure.

Responsibility:

Internal monitoring department and security. Procedure:

Internal monitoring department in coordination with time office and security ensure the

implementation of companys policy to employee adult labor and monitor will ensure that proof

of age for all employees is being maintained in their files. During monitoring if a person is found

less than 18 years. It will be categorized as:

Being 15-18year category A

Being under 14year category B

For category A, young worker(s) will be enrolled in nearest non formal education center being

operated under CSDO (social arm Sialkot chamber of commerce) and duration of course will be

intimated to HRD for follow up and monitoring.


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Upon completing 18 year such workers could be employed subject to fulfilling other

employment conditions.

For category B, worker will be removed from work and be enrolled in formal education center

near to his/her residence and HRD for follow up and monitoring for retention is school. Financial

resources for both categories will be put up in grievance committee and will be utilized for

remediation of child/young worker up to completion of basic compulsory education/attaining 18

year of age. Progress will be shared in quarterly meeting of grievance committee.

SWOT ANALYSIS:

It is a situation analysis tool that helps managers identify internal strengths

and weakness external opportunities and threat, and the potential impact of these factors on

organizational performance.

Internal Analysis:

Strength:

The skilled and experienced labor of the company is a great strength .as well as

strictness in implementation of polices is strength for company .Company is also having

excellent labor force