front structure of crescent bahuman

how we are

FOR MALE WORKERS

· Loose dress is prohibited while working on machine.

· Wearing of sleeper are not allowed.

· Use protective gloves while cutting of fabrics.

· Always wear personal protective equipments during use of chemicals etc. and at hazards places.

Review by the General Manager

The general manager assess the appraisal by the department head, unit manager, personnel manager and then gives final rating to the employee and documents his comments. This section is signed by the human resource manager and the general manager. The performance is appraised on relative basis. For instance, 5 employees are doing the same job, one of them will be outstanding in terms of quality of work, speed etc.

All the increment is revised every year on the basic pay system, taking in view all the government policies which are applied regarding the pay scale system. Although all the steps of HR in HR book are fulfilled but the involvement of the MIAN SB in each and every process is there in order to keep each and every thing in their own hand.

SIX SIGMA

Six-Sigma is a statistics based, unique business initiative directly linked to profitability. CBL is the first Pakistani Company to have 15 employees trained as black belts various functional areas. This will not only directly impact the profitability but also help in streamlining processors across the company.

This for month, project based training was conducted by a renowned foreign consultant and trainer at CBL.

GARMENT WET PROCESSING

The wet processing section has finishing capabilities that have been developed to the alternatives to basic rinses stone washes, bleach type washes, over dyeing and tinting.

Finished garment is tested for Tensile Strength, Tear, crock, wash and ozone in CBL’s Levi’s synchronized Lab.

Highly sensitive online tracking systems are in place to monitor the processing machines. Since this is the area where the ready to ship product comes out, military standard are followed to ensure the required quality if all the process.

SEWING

PTTS (Production Incentives and Tracking System) is used in the sewing. Department to track all styles of production and is also used as a quality control.

Extensive Inline QC system is deployed which operates in such a manner that each and every bundle passes through 5 in line inspection stations. All rejected bundles result is a 100% inspection that bundle followed by necessary.

As opposed to the industry standards CBL sewing does not maintain any contract labor and is fully operated by hired fresh with any sewing experience and are extensively trained in house. The sewing operation strictly Paterson standard.

Minute values every products is allotted a minute value which is turns decides the capacity for that product. The capacity morays out to be 25000 garments per day varying based on the type of garments.

The sewing management team is trained by Kurt Solomon Associates In addition to that CBL has trained expatriates can ground working with the local team to manage the day to day operation.

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30,2006

Gross profit 300,129,851 203,023,783

Other operating income 13,744,095 642,583

313,873,946 203,666,366

Distribution cost 109,577,996 101,943,921

Administrative expenses 25,295,365 24,414,544

Other operating expenses 3,594,949 1,720,656

Finance cost 114,277,712 46,032,774

252,746,022 174,111,895

Profit for the year before taxation 61,127,924 29,554,471

Provision for taxation 22,846,641 16,273,201

Profit for the year 38,281,283 13,281,270

==========================================

Crescent Bahuman Limited

2006 2005

Rs. Rs.

Sales 1,635,312,974 1,576,661,597

Cost of sales 1,335,183,123 1,373,637,814

Gross profit 300,129,851 203,023,783

Other operating income 13,744,095 642,583

313,873,946 203,666,366

Distribution cost 109,577,996 101,943,921

Administrative expenses 25,295,365 24,414,544

Other operating expenses 3,594,949 1,720,656

Finance cost 114,277,712 46,032,774

252,746,022 174,111,895

Profit for the year before taxation 61,127,924 29,554,471

CLIENT LIST

Crescent Bahuman has had the honor of working with the leading brands from four corners of the word. The varied regional mix of customers provides CBL with adequate global market information which in turn adds value to all of its customers. At the same time strict measures are in place to ensure that the product information for one customer is not shared with other customers.

CBL’s current client list includes:

1. Levi’s (world wide)

2. Mustang

3. Carr era

4. Ben Sherman

5. Gap

6. Colorado

7. Big star

8. Express Limited

9. Fundamentals

10. New star

RECOMMENDATIONS

Analyzing all the chapters conclusions and the interviews and surveys that I have conducted, it is finally concluded that CBL management is working in a more focused and formalized manner.

However, to achieve their objectives successfully on the International standards, the following suggestions are offered:

· The CBL must concentrate in the local marketing to increase the profit.

· The management should take keen interest in exporting the fabric to different countries.

· It is highly recommended to the CBL management that they should more emphasize on hiring highly qualified and fresh degree holders because it brings innovation. Moreover highly qualified staff can run the management in a more formalized and focused manner.

· It is recommended to CBL that they should go for news paper advertisement also, both for recruitment purpose and for the purpose of gaining employees of capable abilities having not access to internet.

· It is highly recommended to the management that the orientation must be conducted in a formalized manner. All the activities that have to be completed in the orientation process must be documented on a checklist. After the completion of the orientation process the checklist must be remarked and signed by the newly hired employees, as well as by the supervisor/ head of the departments who are actually conducting the orientation. Finally the checklist must be reviewed by the personnel manger, to make sure that the orientation process has been completed properly.

· It is recommended to the CBL management, that the department mangers must also be given opportunity to go abroad for updated training courses. The experience gained by foreign training courses will make the department managers better able to groom their department employees according to the new techniques being practiced internationally.

· The CBL management must also arrange local training sessions for special purposes to be refreshed after every 3-4 months, like stress management, time management, crises management etc.

· The audio/ visual tools must be used while training lectures. Case studies must be conducted and training literature must be provided to the employees. Employees’ attendance in the training classes must be strictly maintained.

· The annual increment in salaries of the employees in CBL is provided according to bargaining at the time of interview, it should also be awarded according to the performance as well. Moreover it is recommended that the CBL management should increase the annual increments in salaries in order to reduce the high turn over rate in employees.

· In case of outstanding profits earned any year, the CBL management should give credit to the employees by giving them bonuses. This practice will contribute a lot to employees’ motivation and involvement with the Organization Moreover Eid bonuses may be given to employees.

CONCLUSIONS AND RECOMMENDATIONS FOR OVER ALL IMPROVEMENT

CONCLUSIONS

The practical study which I carried in this organization was very informative for me because it provides me the chance to see the actual working environment in the light of management theory. This also gives me the occasion how we can implement the theoretical knowledge in the working environment.

I have seen the different departments most of them are working well. However I have also taken the critic notes of the working ways and conditions of different departments. There I found some weaknesses and flaws along with the good working styles of the workers and the supervisors.

SWOT ANYLYSIS OF THE ORGANIZATION W.R.T. MARKETING DEPARTMENT

Although CBL is going nicely and profitably but here are some SWOT analyses to understand the current position of the organization. In this discussion, we will discuss here some strengths, weaknesses, opportunities and threats of the organization. We discuss them one by one:

FUTURE PROSPECTS OF THE ORGANIZATION

Although the Crescent Bahuman Limited working profitably but it also thinking seriously to capture the maximum market share in the local market as well as in the international market. In this way, they are thinking to expand their production capacity in the organization. At this time they are only working on basis styles but in future they are also thing to produce some fashionable styles in order to capture fashion market. They also are thinking to launch a marketing program for the promotion of fabric. In this way they can also increase their profit by exporting the fabric to other countries and capture the maximum market share in textile industry in local market as well as in foreign market.

MAJOR COMPETITOR’S OF THE ORGANIZATION.

It is a fact that Crescent Bahuman Limited is on top in Pakistani Garment Sector. But some Pakistani Garment factories are also working very hard to compete in the local Marketing as well as in the International Market. Although such list is very long but short list of competitors in produced below:-

1- Artistic Millennium

2- US Apparel

3- Azgard Nine

4- Naeem Textile Limited

5- Golistan

CRITICAL ANALYSIS OF THE THEORETICAL CONCEPTS RELATING TO PRACTICAL EXPERIENCE DURING INTERNSHIP WITH MARKETING DEPARTMENT

No doubt that now a day Crescent Bahuman Limited of Pakistan is on top among all the Pakistan garment factories. During my two month practical experience in the marketing department, I observed that the first position is due to hard working, sincerity and loyally to their management and employees to their work, Their focus is to satisfy their customer through providing different types of quality product on demand and handling the complains of customers very energetically. One important point which I observed there is in time communication with in the department, within the organization, between the departments and outside directly with customer. I also observed that management of marketing department is normally focused on the foreign customers and it must also capture the local market of Pakistan. In this way, they can generate maximum profit not only from foreign customers but also from local customers.

28. SUCCESS AND FAILURE OF DIFFERENT PRODUCTS OF THE ORGANIZATION IN THE MARKETING ALONG WITH REASONS.

Crescent Bahuman Limited has not a long range successful products in past. When the organization started the production on commercial basis in June 1995, it produced product on limited basis because foreign customer are not satisfied with the quality of CBL. Then as time passes, CBL concentrate the different requirements of customers and products quality products. And now a day, all the big customers such as, Levi’s all over the world, Big star, ALF, Mustang, Express, Limited, Carr era, Ben Sherman and New Start are Successfully working with CBL. Recently, a foreign customer name Nautica has left the CBL due to poor quality of products. And Levi’s also give orders to some other Pakistani garment factories. So, the management of CBL must thing seriously to retain the customers and must establish long term relationship by providing quality products to their customers.

SAMPLE MAKING PROCESS

The procedure of sampling start with customer request reach in marketing department through AMOL and buying houses. For making sampling customer send us package. Usually the sample package includes the Following thing:

· Physical Garments

· Specs(measurement, construction

· Trims and sundries(sample quantities)

· Pattern(floppy’s , CDs)

The AWB# provided by the customers. First of all customer sends an AWB# through E-mail to the concerned brand manager. The AWB# helps in tracking the concerned Package. The brand manager opens the specific courier service website & track the Status.

1- Firstly the packages reach the Head Office. They send it to plant receiving section (store) or some time directly in the marketing department. If package send in the Store. The store inform marketing department about the specific package. Marketing department collects the package from receiving section. When the package arrives in the marketing department the concerned brand manager open the package and observe the contents. After collection of package, package receipt is sent to AMOL and customer.

2- Before handing over to PD the following steps are taken for the maintenance of marketing department record:

· Take pictures of every garment (jackets, jeans) through digital camera and then

· Download the pictures for future reference.

· Make photocopies of every document one by one for record purpose.

· Prepare trim card for future reference.

· Package receipt.

3- .R (sample request) issues by Account manager.

4- Package Handover meeting with PD along with following things.

· S.R

· Pattern

· Sample package

5- PD issues SR#

6- Now plan is made by PD for sample development. Sample priority meeting is also call. This meeting is between marketing and PD.

7- Sample status which is made by PD and send it to marketing. Sample Status is documents that represent the planned, actual and target dates of shipment along with the sample tracking.

8- After preparation of sample status the respective brand manager follow up the samples and target shipment dates.

9- This sample status is send to customer and AMOL.

10- Sample making start by PD.

11- Meanwhile the respective brand managers intimate the export department in head office to arrange Visa for sample two days prior to ex-mill date.

12- After this ensure about sample forwarding by PD. PD sends sample forwarding to marketing and export

.Before departure all the samples are reviewed by marketing/PD/QA

.

13- In case sample are rejected in house, due to wash or fabric discrepancies. They are take back into plan and recut

14- When the samples are approved they are ex-mill to Head office and ex-Pakistan through DHL

15- At the end of spectrum the dispatch advise are prepared and sent to AMOL and customer with a copy of marketing head/respective brand manager

16- When sample receipt by the customer it is reviewed/evaluated and in case of rejection. Its gets started by incorporating the advised comments.

We can see the whole sample making process on the next page.

METHODOLOGY

All inquiries are received by the Centralized Marketing Department. Through correspondence and meetings with the customer, the Marketing Department understands the customer’s requirements and preferences. A new product is handed over to the Product Development (PD) team for sample development. Approved order are then transferred to Production Planning & Controlling (PPC) department, which initiates the order by verifying order specifications, planning the order schedule, arranging required materials and issuing cut, sewing and wash schedules. Paper sundries and labels are cut and printed in-house. The fabric is cut according to issued plan and sent for sewing in packed and bar-coded bundles. Based on product requirements, the garments are stitched and sent for washings.

Sorted by wash requirements, the garments are trimmed, washed, pressed and packaged according to the customer specifications. Identification tags are placed and containers are loaded for shipment. All processes are based on the strict Standard Minute Values (SMV’s) monitored by the Industrial Engineering (IE) Department

PROCESS OF MARKETING DEPARTMENT

Development /Sample Package (Pattern/Garment etc)

from customer

Product Development Department (Evaluation of Sample) Customer

Sales Sample

Size Set

Amendments (According to customer)

Bulk Production (After approval/satisfaction

of customer)

Shipment

Post Sales Services

We can see the whole process of marketing department, what actually marketing is doing in CBL on the next page

STRUCTURE OF THE MARKETING DEPARTMENT

Number of employees working in the marketing department

1) Mr. Jawad Arshad (AVP, Head of Department)

2) Mr. Shakeel Khan (Sr. Deputy Manager)

3) Mr.Faisal Ajmal (Sr. Deputy Manager)

4) Mr. Fahad Hussain (Deputy Manager)

5) Mr. Syed Kashif Abbas (Sr. Assistant Manager)

6) Mr. Sheeraz Ahmed (Sr. Assistant Manager)

7) Mr. Maqsood Ahmed (Jr. Assistant Manager)

8) Mr. Ubaid-ur-Rehman (Assistant Manager)

9) Mr. Asif Ali khan (Assistant Manager)

10) Mr. Muhammad Usman (Office Boy)

MARKETING

Marketing is a total system of business activities designed to plan, price, promote, and distribute want-satisfying products to target markets to achieve organizational objectives.

Marketing is Management process involved in identifying, anticipating, and satisfying customer profitability.

Marketing is essential to the survival of any organization, it is fast-paced and dynamic; it is highly visible; it is rewarding to its successful practitioners and frustrating to the less fortunate and sometimes it is controversial.

The management process in marketing is the planning, implementation and evaluation of the marketing effort in an organization. Implementation is the stage in which an organization attempts to carry out its strategic planning. Strategic planning is virtually useless if it is not implemented effectively. Implementation includes three activities organizing, staffing and directing.

In organizing the company should first coordinate all marketing activities into one department whose top executive reports directly to the president. Then within the marketing department the company may utilize some form of organizational specialization based on geographic territories, products, or customer types.

PERFORMANCE & APPRAISAL

Basically HR managers need to know, whether their employees are performing their jobs efficiently and effectively or is there a need for improvement. Actually Performance & appraisal are two sides of a coin.

Evaluating employee performance is a process which helps HR manager for establishing performance standards and appraising employees’ performance in order to arrive at objective human resource decisions as well as to provide documentation to support those decisions. Mostly Immediate officer appraises performance.

Performance appraisal is the systematic description of the job relevant strengths and weakness of an individual or a group. It is very important for the following major purposes:

a. Appraisals help to establish objectives for training programs.

b. Appraisals are used as criteria in test validation

c. Appraisal can help diagnose organizational problems

d. Appraisals provide legal and formal organizational justification.

e. Appraisal provide feed back to employees

EMPLOYEES TRAINING

The HR managers are responsible for deciding what type of training employees need, when they need it, and what form that training should take.
Human Resource department arranges, coordinates and supervises all different sorts of training programs for all different levels of employees.
9.4 TRAINING SESSION
In CBL a different type of training programmes conducted which depend on the nature of job. For example For the stitching department employees send in training unit for two or four month then employees sends to stitching department but some time already experienced person forward to stitching department without training.

9.5 TRAINING METHODS
There are two types of training methods used in this organization:
9.5.1 On the job training
9.5.2 Off the job training

PROBATION PERIOD

Immediately after the ‘work unit orientation’, the probation period starts. The probation period for all regular jobs is 6 months (During the probation, every month the performance of the employee is accessed and graded by the immediate manager of the new employee and this performance report is send to the head office. If the employee shows the expected level of skills and abilities required by the job and his performance is positive till the end of probation period, then the employee is hired on permanent basis otherwise is laid off.

PROCESS OF TRAINING

Orientation

Introduction to the job and the organization is called orientation. There are two types of orientation. Work unit orientation familiarizes the employee with the goal of the work unit, clarifies how his or her job contributes to the unit’s goals, and includes an introduction to his or her new co-workers. Organizational orientation informs the new employee about the organization’s objectives, history, philosophy, procedures, and rules. This should include relevant human resource policies and benefits such as work hours, pay procedures, over time requirements, and fringe benefits. In addition, a tour of the organization’s work facilities is often part of the organization orientation.

HR Managers have an obligation to make the integration of the new employees into the organization as smooth and as free of anxiety as possible. They need to openly discuss employee beliefs regarding mutual obligations of the organization and the new employees to get the person up and running in the job as soon as possible. Successful orientation, whether formal or informal, results in an outsider-insider transaction that makes the new member feel comfortable and finally well adjusted, lowers the likelihood of poor work performance, and reduces the probability of a surprise resignation by the new employee only a week or two into the job

QUALITY POLICY

Crescent Bahuman Limited palaces highest emphasis on manufacturing of its design products with consistent quality by incorporating efficient and flexible processes to ensure customer satisfaction. Total quality management is and continuous improvement of every process. The management is committed in maintaining and improving quality management system by:

1. Effective Management Leadership.

2. Involving every person in implementing continuous improvement with a sense of ownership.

3. Provision of resources and environment.

4. Employee development welfare.

CBL complies with the following standers:

1. 80 (9002 and 14001)

2. Montreal Protocol Treaty (Refrigerant Replacement)

3. Factories Act 1934.

4. NEQS (Air emissions, Liquid effluents)

5. IFC standards (Air emission, amnion noise, Fire safety monitoring.)

6. Levi’s standards (Accident, medical screening PPEs, training on EHS, noise Mont, elct sys, work permits, slid and hazardous waste disposal and WWTP).

7. World Bank standards (Air emission, Noise Effluents, work ENV.)

7. ENTERPRISE RESOURCE PLANNING

CBL is engaged with a local software company to develop its new Enterprise Resource Planning system. This will systemize and integrate all the internal processes to ensure speed and accuracy at every step of product generation. This 32 modulo role out is the biggest ERP attempt by any textile company in the world. The customized module is based on the Job Order triggered by the CRM module (customer Relationship Management) and supported production planning, product development, procurement, import, export human resource, finance (oracle) engineering and several other modulus.

8. SIX SIGMA

Six-Sigma is a statistics based, unique business initiative directly linked to profitability. CBL is the first Pakistani Company to have 15 employees trained as black belts various functional areas. This will not only directly impact the profitability but also help in streamlining processors across the company.

This for month, project based training was conducted by a renowned foreign consultant and trainer at CBL.

9. TRAINING & DEVELOPMENT

Training is a planned effort to increase employee skills on present jobs. Basically there are two way of training.

1. Training for the manager level

2. Training of the worker level employs.

Appointed persons are trained for one year. They are given the title “Management Trainee” or Assistant

The trainee is given a brief view (orientation) of the company, various processes, rules & regulations etc. This orientation may be from two weeks to two months.

After the orientation program, the participants may ask to submit short report or presentation.

After the 6 months training, the trainee goes to H.R. Manager and tells him what he has learned in this program

FUNCTIONS OF THE ORGANIZATION

TEXTILES

CBL’s textiles division is equipped with Ring/opened Spinning, Ripe, Dyeing, weaving and cutting facilities along with Fabric and Farn Testing, Dyeing and Fabric Testing Laboratories.

Each bale of cotton is tested in Fabric testing laboratories before being consumed in the spinning process. All key aspects of the Farn used and their physical characteristics are measured and monitored in the Farn. Fabric is test ed for Tensile Strength, Tear Strength, Shrinkage and elongation amongst other industry standard Tests performed CBL’s Levi’s approved fabric testing lab. Dyeing and Finishing Laboratory Facility is used too. Carryout all necessary chemical testing to ensure consisting of fabric and its conformance to agreed physical standards.

Information from all Process is shared and monitored using the latest software technology. Procedures are in place to verify all cut parts against patterns with counts performed at cutting and again when received by sewing. The cutting facility is equipped with Automatic spreading Machine and Gerber cutters.

There is complete in-house capability for printing. Leg sticker, VIM, Leather patches and different kinds of labels using various papers lands, Meto, and TTk Avery equipment.

4.2 SEWING

PTTS (Production Incentives and Tracking System) is used in the sewing. Department to track all styles of production and is also used as a quality control.

Extensive Inline QC system is deployed which operates in such a manner that each and every bundle passes through 5 in line inspection stations. All rejected bundles result is a 100% inspection that bundle followed by necessary.

As opposed to the industry standards CBL sewing does not maintain any contract labor and is fully operated by hired fresh with any sewing experience and are extensively trained in house. The sewing operation strictly Paterson standard.

Minute values every products is allotted a minute value which is turns decides the capacity for that product. The capacity morays out to be 25000 garments per day varying based on the type of garments.

The sewing management team is trained by Kurt Solomon Associates In addition to that CBL has trained expatriates can ground working with the local team to manage the day to day operation.

4.3 GARMENT WET PROCESSING

The wet processing section has finishing capabilities that have been developed to the alternatives to basic rinses stone washes, bleach type washes, over dyeing and tinting.

Finished garment is tested for Tensile Strength, Tear, crock, wash and ozone in CBL’s Levi’s synchronized Lab.

Highly sensitive online tracking systems are in place to monitor the processing machines. Since this is the area where the ready to ship product comes out, military standard are followed to ensure the required quality if all the process.

5. PHILOSOPHY OF THE ORGANIZATION

Crescent Bahuman Ltd. also established a corporate philosophy for the betterment of the nearly 6000 employees and community while ensuring the manufacturing process is environment friendly. Near 20% of the employees hold postgraduate or graduate degrees in various disciplines.

At Crescent Bahuman Ltd; I believe that in having the best possible working environment for employees which is shown by its philosophy of corporate citizenship, which provides the employee with following benefits:

1. Free Housing at the plant for employees

2. Extensive employee job training and continuous education support

3. On-site school for the children of employees and local communities

4. Minimum age requirement of 18 years for employees.

5. Subsidized meals during working hours.

6. Industrial waste processing meeting US government standards.

7. Pick and drop for employee choosing to live off plant.

8. Employee safety through training on hazardous material handling, work aids and physical protection equipment and procedures.

9. We offer a firm but sophisticated environment valuing each team member’s individuality. A culture that is open innovative and performance orientated. Our scale and scope, local roots and heritage, commitment to people and high standards of integrity make CBL a great place to work. At CBL, we are creating a working environment that combines uncompromising integrity with professional excellence. We are always looking for people with exception dynamism, both as team leaders and players to deliver stretching business results and win in the market palace.

10. Hiring young blood, as Management trainees is a permanent feature of CBL. We have Graduates and Masters Degree holders in Business Administrations, economics, engineering, Public Administration and environmental Sciences as Management Trainees. Our corporate culture can be termed as meritocracy, as new roles or Promotions are dictated by performance and competence.

11. Training and development:

12. CBL is dedicated to invest both, the employer’s professional skills and personal development. We aim to equip our human resource with up to date, valuable skills, relevant to the industry. We other our employees a tailboard mix of on and off the job training, Provided other by external exports or via CBL’s extensive training services and facilities.

13. Besides Providing internal Training program employers are sent to training sessions arranged by other institutions like Lahore University of Management Science (Lums), employee Federation of Pakistan (EFP), and Pakistan institute of Management science etc. Upon completion of their training programs, these employee share practical training internally.

14. Currently CBL is spending more than 1000 hrs/years on training of employees.

15. Literacy Program:

16. CBL has taken the initiative of educating its illiterate employees (both contractual and permanent) and general residents of the surrounding community enabling them to read write up to a minimum required level. At present there are about 25 permanent is underway. By enhancing the literacy level in the company and community, team member of the company and individuals from its surroundings world acquiring enough Knowledge to understand and communicate in a better way to help their companied surroundings bloom.

17. Environmental Health and Safety.

18. The EHS department’s guiding philosophy is rooted in the ethical value of caring for the CBL plant, people and the community as a whole, now and into the future. Its missions to maintain all activities at the CBL plant, safe, healthy and environment friendly.

19. It is the policy of Crescent Bahuman, limited is its parathion to provide plant, system and working conditions which are safe and risk free to the health of all employeers , visitors, contractors and public and which avoid damage to property and adverse impact on the environment.

20. Protect all employers from exposure to any substance or activity which may be hazardous to health by suitable control measures based on the assessment of risks.

21. Provide information, training and supervision to all employers enabling them to carry out their duties and responsibilities in a safe and effective way

22. To develop emergency response procedures

23. Develop and implement EMS

24. Provide an effective occupational health program

NUMBER OF EMPLOYEES

Numbers of Staffs as on 31,Dec-2007 Percentage

Executives 25 0.40%

Managers 275 4.40%

Supervisors 300 4.81%

Assistant Supervisor 589 9.45%

Sr. Staff 386 6.20%

Operators 87 14.10%

Assistant Operators 3778 60.64%

Total 6230 100.00%

Crescent Bahuman Limited BALANCE SHEET

2006 2005

Rupees Rupees

Share Capital and Reserve

Authorized capital

600,000 ordinary

Shares of Rs. 100/- each 60,000,000 60,000,000

Issued, subscribed and

Paid up capital 60,000,000 60,000,000

inappropriate profit 105,466,103 67,184,820

__

165,466,103 127,184,820

Non-current Liabilities

Long term loans 329,868,755 362,098,587

Liabilities against assets subject

To finance lease 115,946,982 109,771,594

Deferred liability

Staff retirement gratuity 10,823,609 9,962,141

456,639,346 481,832,322

Current Liabilities

Short term bank borrowings 950,182,695 787,135,412

Current portion of long

Term liabilities 89,838,462 52,847,898

Creditors, accrued and other

Liabilities 244,989,749 233,644,309

Provision for taxation

Income tax 22,846,641 -

1,307,857,547 1,073,627,619

Contingencies and commitments 1,929,962,996 1,682,644,761

______________________________________

Non-Current Assets

Fixed assets 597,278,955 578,182,168

Long term deposits 5,554,985 2,550,543

602,833,940 580,732,711

Current Assets

Stores, spares and loose tools 146,866,290 124,260,241

Stock in trade 709,655,037 544,866,136

Trade debts 165,148,491 108,295,886

Short term investments 1,440,750 61,440,750

Advances, deposits and prepayments 198,593,943 129,885,968

Other receivables 81,033,815 120,640,588

Cash and bank balances 24,390,730 12,522,481

1,327,129,056 1,101,912,050

1,929,962,996 1,682,644,761

________________________________________

BUSINESS VOLUME

The balance sheet and profit and loss account together will show the business volume of CBL for the year ending on 30th June, 2007.

OVERVIEW OF THE ORGANIZATION

3.1 GENERAL INFORMATION

Planning Initiated: June 1993 (site selection)

Land Purchasing: August 18, 1993

Civil Work Started: February 4, 1994

Contract to be given: (Akber & Associates)

Sub Contractors: MCC

Guarantee

Selecto

Paragon

Total Area of Land: 174 Acres

Erection Started A/C (Luwa): August 8, 1994

Erection Started (Spinning): September 8, 1994

Erection Completed: December 1994 (Textile)

Production Started (trail basis): Late January 1995 (Textile)

Production started (commercial basis): June 17, 1995

Cost at Close (Approx.): 80 Million US $

TEXTILE DIVISION

MACHINERY & EQUIPMENT

SPINNING

Waste Recycling Plant 1Line Trutzschler (Germany)

Blow Room 2Line Trutzschler (Germany)

(One for Ring & Other for O/E)

3.2 THE INTRODUCTION OF THE ORGANIZAITION

Crescent Bahuman Limited, originally setup as a joint venture between The Crescent Textile Mills Limited, Pakistan and Green wood Mills inc, USA is now fully owned by the Crescent Group. The plant is located in Pindi Bhattian, Pakistan roughly 11/2huors from Lahore and 21/2 hours from Islamabad along a motorway connecting both cities.

Designed as a vertical jeans wears facility, it commenced commercial production in June 1995.The plant is situated on 450 Acers with 165 committed to commercial activities and manufacturing facilities of 1 million square feet. The facility in one of the first single site operations finished jeans wears. It also has a waste water treatment plant and a power generation Plant with in the compound.

CBL has established a corporate philosophy for the betterment of the nearly 6000 employees and community while ensuring an environmental friendly manufacturing process.

This facility is equipped with the latest technology in equipment from spinning through garment finishing with a capacity of 11.5 millions meters of fabric, which when converted produces 8 million jeans annually.

In September 1998, Apparels Marketing and operations Ltd. was established to manage CBL. Along with its day to day management of operations and development of new strategies for marketing and sales, AMOL opened an office in Derry, Northern Ireland for the Marketing and sales functions while creating an expatriate team in Pakistan to manage the operation and continue training local management.

The focus is to create seamless interface throughout the manufacturing process addressing delivery, cost and quality issues providing the right product the first time, at the right time. The speed of developing and getting the right product to the customer is at or above par with manufacture all over the world.

Lead-time from to delivering to market has been a continuing focus of Crescent Bahuman Ltd. With extensive investment into systems right form order taking and procurement through to production and delivery CBL has managed to squeeze its lead-time to the satisfaction of its global customer base.

3.3 MAIN PRODUCTS LINES

CBL is producing more than 300 styles of denim products and more than 200 developed washes with over a 100 customer approved fabric resulting in a dynamic mix of finished & jeans wears. The finished produced includes skirts, shorts, jackets and trouser are one or a combination of the following finishes:-

1. Whiskers

2. Brushing

3. Scrapping

4. Spray (Robot spray)

5. Sand Blasting

6. Tinting

CBL specializes in working closely with its customers to develop a wide range of unique products. For Product Development, CBL is equipped with a highly dedicated team and state-of-the-art equipment to churn out new products at the speed of market demand.

3.4 CLIENT LIST

Crescent Bahuman has had the honor of working with the leading brands from four corners of the word. The varied regional mix of customers provides CBL with adequate global market information which in turn adds value to all of its customers. At the same time strict measures are in place to ensure that the product information for one customer is not shared with other customers.

CBL’s current client list includes:

1. Levi’s (world wide)

2. Mustang

3. Carr era

4. Ben Sherman

5. Gap

6. Colorado

7. Big star

8. Express Limited

9. Fundamentals

10. New star

3.5 LEAD TIMES

Based on the complete development of a product, including on site printing capabilities on size specific trims, and coupled with a defined manufacturing plan can provide the following delivery schedules:

Weekly production order issued electronically being day 1.

Order leaves plant in 8 days.

Order ships from Karachi in 7 days.

Delivery time to following ports:

· Antwerp, Belgium 26 days

· Bremerhaven, Germany 21 days

· Flexistowe, UK 22 days

· New York 31 days

· Houston, TX 36 days

· Long Beach, CA 27 days