Square Textiles Ltd. free essay sample

1. 0 COMPANY OVERVIEW 1. 1 ABOUT COMPANY: Square Textiles Ltd. started its journey by establishing the first unit in 1997. One year later the second unit was established. Square Textile is a subsidiary company of Square Group . The Company was incorporated as a public limited company in the year of 1994. The operation was started in 1997. The factory is located in Saradaganj, Kashimpur, Gazipur, Bangladesh. Its office is located at Uttara in Dhaka 1. 2 MISSION STATEMENT: The mission statement of Square Textiles Limited is â€Å"Our mission is realization of vision through maximum production of goods and services strictly on ethical and moral standards at minimum costs to the society ensuring optimum benefits to the shareholders and other stakeholders. † 1. 3. KEY PRODUCT / SERVICES: As stated earlier the business line of the company is manufacturing and marketing of yarn. It manufactures: †¢ 100% Cotton Ring Span Yarn For Hosiery †¢ 100% Cotton OE Rotor Yarn for Hosiery †¢ Knit Fabrics for 100% export oriented readymade Garments Industry. It also performs the following services:- Dying Post Mercerization. †¢ Fabric Dying 1. 4 STRATEGIC GOALS OBJECTIVES: The company sets the following objectives for it to achieve: †¢ To strive hard to optimize profit through conduction of transparent business operations within the legal and social framework with malice to none and justice for all †¢ To create more jobs with minimum investments †¢ To be competitive in the internal as well as external markets †¢ To maximize export earning with minimum imported in-puts †¢ To reduce the income gap between top and bottom categories of employees. 2. 0 MANAGEMENT Management: The entire management process comprises the following units: 2. 1. Executive Management: The Managing Director, the CEO is the head of the Executive Management Team which comprises senior members of the Management Apparatus. Within the limits of delegated authority and responsibility by the Board of Directors , Executive Management operates through further delegation of authority at every echelon of the line management . The executive Management operates within the framework of Policy Planning strategies set by the Top Management with periodic performance reporting for guidance . 2. 2. Management Committee: Comprising top executives , deal with entire organizational matters. 2. 3. Standing Committee: Standing Committee comprises the following committee: 2. 3. 1. Audit Committee: †¢ Internal Audit Committee †¢ ISO Audit Committee †¢ Social / Environment Committee †¢ Performance Evaluation Audit Committee 2. 3. 2. Employment Relations Committee: †¢ Remuneration Committee †¢ Work Environment Committee †¢ Performance Evaluation Audit Committee 2. 3. 3. Management Committee: †¢ Product Planning Development Committee †¢ Quality Control Research Committee †¢ Production Inventory Management Committee Export Promotion Committee 3. 0 MARKETING OVERVIEW 3. 1 POTENTIAL CUSTOMER: The target market for products produced in Square Textiles Ltd. and Square Spinning Ltd. is Export Oriented Readymade Garments Industry. Readymade Garments exporter that is Knit Fabrics, Sweater and Denim manufacturer. In Bangladesh Beximco Kitting, Grameen Knitwear, Shasha Denim, Knit Concern etc are the customers. Target market for products produced in Square Fashion Ltd. is Europe and U. S. A. Square Textiles does not direct sales in overseas market but sometimes India, Pakistan other countries take their yarn. . 2 SIZE GROWTH OF MARKET: The Company’s marketing operations continued its emphasis on export sales over the years as depicted below: | |Year 2006 |Year 2005 |Year 2004 | |(a) Quality sold (Kg) | | | | |Local sales |99,800 |527,903 |539,417 | | |(0. %) |(3. 7%) |(3. 9%) | |Export Sales |14,554,342 |13,817,314 |13,129,599 | | |(99. 3%) |(96. 3%) |(96. %) | |Total Sales |14,654,142 |14,345,217 |13,669,016 | | |(100%) |(100%) |(100%) | | | | | | |(b) Sales Revenue ( Taka ) | | | | |Local Sales |9,455,588 |32,576,936 |46,956,494 | | |(0. 4%) |(1. 8%) |(2. 3%) | |Export Sales |2,093,214,675 |1,756,441,450 |2,029,968,545 | | |(99. 6%) |(98. 2%) |(97. %) | |Total Sales |2,102,670,263 |1,789,018,386 |2,076,925,03 9 | | |(100%) |(100%) |(100%) | 3. 3 COMPETITOR ANALYSIS: Among the domestic companies Square is one of the leading one. The other potential competitors are Padma Textiles, Shamim Textile etc. Competition will be severe after 2005, that is, during the post multifiber agreement period. World market will be Quota free at that time. So Bangladesh will have to compete with countries like Srilanka, China, Pakistan, Vietnam etc. 4. 0 HUMAN RESOURCE MANAGEMENT 4. 1. Human resource planning Square textiles Ltd. has a personal and administrative Department . Square textiles Ltd is one of the biggest employers in Bangladesh. The total number of employers in Bangladesh . The total number of employees is 1,223. For the employees there are systematic in house training in home and abroad . To motivate the employees, along with salary and benefits the company provides various facilities like free meals , free transportation , 24 hour medical center , on site sports 4. 2. Recruitment process in SQUARE textiles Ltd. Source of recruitment There are two kinds of source SQUARE textiles Ltd. uses for recruitment . They are 1. External source 2. Internal source. We try to discuss all relative sources which are used for recruitment in SQUARE. 1. Internal source SQUARE textiles Ltd. thinks that current employees are a major source of recruits for all but entry-level positions. Whether for promotions or for ‘Lateral’ job transfers, internal candidates already know the informal organization and have detailed information about its formal policies and procedures. Promotions and transfer are typically decided by operating managers with little involvement by HR department. 1. 1Job-posting programs. 1. 2 Departing Employees 2. External source 2. 1 Walk-ins and Write-ins: 2. Employee referrals: 2. 3 Advertising Want ads describe the job and the benefits, identify the employer, and tell those who are interested how to apply . They are most familiar form of employment advertising . for highly specialist requites, ads may be placed in professional journal or out of town newspaper in areas with high concent ration of the desired skills 2. 4 Internet Now today no body thinks anything without internet. So SQUARE give their advertise at internet. Example: www. bdjobs. com www. square. bd. com 5. 0 FINANCING 5. 1. Financial Result: The Company’s operating financial results, as compared to the previous year, are summarized hereunder: Taka) (Taka) (Taka) Year 2006 Year 2005 Year 2004 Turnover 2,102,670,263 1,789,018,386 2,076,925,039 Cost of Goods Sold 1,737,055,759 1,500,281,590 1,676,690,068 Gross Profit 365,614,504 288,736,796 400,234,971 Operating Financial Expenses 175,524,220 197,835,510 217,687,872 Operating Income 190,090,284 90,901,286 182,547,099 Other Income 225,844 663,215 912,083 Net profit Before WPPF 190,316,128 91,564,501 1,83,459,182 Contribution To WPPF 9,062,673 4,360,214 8,736,152 Net Profit (BT) 181,253,455 87,204,287 1,74,723,030 Provision for Income Tax 13,359,728 5,751,104 Net Profit (AT) 167,893,727 81,453,273 174,723,030 Gross Margin 17. 39% 16. 4% 19. 27% Net Margin 7. 98% 4. 55% 8. 41% Earning per Share (EPS) 6. 67 3. 23 6. 94 Outstanding Shares 25,190,000 25,190,000 25,190,000 Face value Per share (TK) 10 10 10 The gross margin rose to 17. 39% from the level of 16. 14% in 2006. As the operating financial expenses declined , net margin also rose 4. 55% in 2005 to 7. 98% in 2006. 6. SWOT ANALYSIS: SWOT analysis means the analysis of strength , weakness, opportunity and threats . For Square Textiles Ltd. It is given below: 6. 1 Strength: Square Textiles Ltd. Is a rapidly expending Company . Standing its journey in 1998 it has already doubled the net turnover by the year of 2006. All the units of the factory enjoy highly of machinery are imported from Germany, Switzerland , Italy japan . As a result it can maintain a smooth rate of production 6. 2 Weakness: There are too many departments under the super vision of the general manager which can cause low productivity due to large span of super vision. 6. 3 Opportunity: There are bright opportunities for the Company in the overseas market . If is can communicate well and capture a significant market portion in the Europe and USA market, it can get scale of economic. 7. 0 CONCLUSION: The flourishment of any industry requires combined efforts and co-operation from several parties . Social , political and macro economic environment play pivotal role in this regard . Though Square Textile is a newly Ventured Company in the respective sector, its growth and expansion is praiseworthy. Its contributing the country and serving the nation in different ways. If it can up hold its much toward advancement, it will be able to set a role model in our country.