2012ST Textile Mills Ltd.

Sarfaraz Ahmed Khan (8057) Tauqir Ahmed Khan (9300)

[PROJECT APPRAISAL]The objective of the study is to appraise the setting up of a TEXTILE SPINNING unit in Pakistan which will be producing and exporting yarn, throughout this study we will be looking at various aspects that are to be considered while setting up a Spinning unit.

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1 EXECUTIVE SUMMARY 2 TEXTILE INDUSRY OUTLOOK 3 THE PROJECT INTRODUCTIONa Objective b Scope c Methodology and Approach

2 3 6 6 6 6 7 7 7 8 9 10 10 10 10 11 12 17 18 18 19 19 20 20 22 23 23 24 24 25 26 27 28 29 29

4 MANAGEMENT APPRAISALa b c d e f

Sponsors Sponsors Objective Proposed Management Structure Organizational Chart How objectives will be developed at a Vogue Textile? Competitors

5 ENVIRONMENTAL ANALYSISa Corporate Social Responsibility b Environmental Health and Safety Policy

6 MARKETING ASPECT AND ANALYSIS 7 TECHNICAL ANALYSIS a Location analysisb Technical Assumptions c Process layout d Machinery and Equipment for Processing

8 FINANCIAL ANALYSIS:a b c d e f g h i j k l

Total Project Cost Key Assumptions Key Financial Assumptions: Annual Loan Payment schedule Depreciation Schedule in Millions: Sales Realization Working Capital Requirements in Millions: Income Statement in Millions: Cash flow Statement in Millions: Projected Balance Sheet in Millions: Free Cash Flow Statement in Millions: Project NPV

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m n 9 a b c d e 10 11 12 13

Project IRR (Internal rate of return) Sensitivity Analysis ECONOMIC ANALYSIS Increase in National Income Contribution to tax Economic Stability Agricultural Development Greater Employment CONCLUSION RECOMMENDATION APPENDICES BIBLOGRAPHY

30 30 31 31 31 32 32 32 33 34 36 43

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1. Executive Summary:Pakistan is a land with a lot of potential and hidden natural resources that are yet to be explored and put to use. Textile sector generates more than 50% of export earnings and comprises of 2% of worlds total trade but is one of those undervalued and underutilized sector which needs to be taken care of. The textile industry of Pakistan has the potential to perform better both in production as well as in export by virtue of its inherent competitiveness on account of its conventional products. However, to sustain its position and increase its share and to move into high value added products, large investments in machinery equipment and new technology are essential. The spinning sector is the most important segment in the hierarchy of textile production. At present, as per the record of Textile Commissioner Organization (TCO), it is comprised of 521 textile units (50 composite units and 471 spinning units) with 9.99 million spindles and 116 thousand rotors in operation with capacity utilization of 89 percent and 60 percent respectively, during July March 2011-12. Looking at the potential of this sector our sponsors have decided to set up a cotton spinning unit at Nooriabad near Karachi with an annual capacity of 48,000 bags. Total cost is estimated to be Rs 110 million which would be financed 66% from debt and 44% of the funds would be provided by sponsors. The company will face issues like fluctuating cotton prices, global and domestic competition and increasing interest rates which can be resolved by cotton hedging to save ourselves from volatile cotton prices, aggressive marketing and targeting potential market in European countries and borrowing funds at fixed interest rates respectively.

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2. TEXTILE INDUSRY OUTLOOK:Pakistans textile industry ranks amongst the top in the world. Pakistan is World's fourth largest cotton producer and the third largest consumer of the same. Cotton based textiles contribute over 60% to the total exports, accounts for 46% of the total manufacturing and provide employment to 38% manufacturing labor force. The availability of cheap labor and basic raw cotton as raw material for textile industry has played the principal role in the growth of the Cotton Textile Industry in Pakistan. With the advent of Textile could be termed as the backbone of Pakistan's economy. It is not only the largest industry in the country but it is the greatest source of foreign exchange earnings in Pakistan. The Textile sector critically depends on the supply of raw material from agriculture sector and therefore, whatever happens to cotton crop is likely to affect the performance of textile sector. The quota free global regime spear headed by the WTO it has become imperative for a rapidly developing country like Pakistan to further explore potential new markets both in its neighboring territories as well as distant ones. In this context, Pakistan has signed a Free Trade agreement (FTA) with China. This FTA is predicted to bring around $5 billion increase in our trade volume with China which is going to consist mostly of textile related commodities. Economic analysts have already dubbed this pact as the Cotton Road to China. In order to fully avail the concessions under the agreement the Government is strongly committed to further strengthening the textile sector in the country. However the Garment Sector especially the Knitwear Garment Sector needs special support.

The profile of various components of the textile industry are given below:

Performance of Ancillary Textile Industry.

Cotton Spinning Sector Weaving & Made-ups Sector Filament Yarn Manufacturing industry Art Silk and Synthetic Weaving Industry

Neighboring India, even after an extreme slowdown, is still growing at more than 6 percent per year; whereas, Pakistans growth average during the past four years has been barely 2.50 percent. At least two million new workers enter our labor market every year, which means that if we cannot match this with corresponding growth, the problems with unemployment and poverty will

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compound. The sad reality at present, however, points to a climate where our industry is instead operating at about 30 to 40 percent below capacity. The textile sector accounts for approximately 38 percent of our entire labor force and an operating level of 60 percent basically means a job loss in this sector alone of about one million workers. Ironically, in textiles, not international demand or global management, inefficiencies have been the main culprits, but the sheer choking of power (electricity) and energy (natural gas) has forced closures resulting in the loss of global market share. Comparing this with 2007, when the industry was operating on full capacity, it means: Whereas, in four years an extra 3.20 million fresh young employable workers should have been absorbed in the textile sector, it is at present accommodating one million than its peak back in 2007! Running an industry per se is becoming untenable, especially in Punjab, where it is forced to close for nearly 170 days a year for want of power and energy. Little wonder that our textile exports are falling, rather than registering an increase. Based on the figures recently released by the Ministry and verified by the respective Chambers, if we compare January 2011 to January 2012 in quantity terms, the total textile exports have registered a decline of 15.37 percent, and the sector wise decrease reads as textiles and clothing by 16.81 percent, knitwear by 34.79 percent, bed wear by 30.24 percent, towels by 21.76 percent, readymade garments by 24.46 percent, art silk and synthetic textiles by 44.29 percent and other made-ups by 28.16 percent. Even more disturbing is the trend that the exports of higher value items have fallen at a much higher rate than the less valued ones and, alarmingly, the products that in competing manufacturing economies are regarded as raw materials, have actually gained their share of exports! For example, raw cotton exports have registered an increase of 397.42 percent, cotton yarn one percent and yarns other than cotton yarn by 2,287.50 percent. Value addition as we know has been a weakness of Pakistani textile exports, as we continue to operate at one of the lowest per kilogram values amongst the principal textile manufacturing countries of the world.

And it is this very weakness, which our Textile Ministry needs to guard against and strategize to somehow overcome. The Indian Ministry as we know goes to great lengths in policy formation to ensure that the operational framework supports a culture where the industrial potential of value addition gets maximized - in spite of no real global or domestic shortage of cotton, we saw India place a ban last month on its cotton export to see to it that priority lies with conversion of the basic commodity into finished cum made-up goods - this in order to generate both additional foreign exchange revenues and employment. At our end, one is not too convinced that our policymakers are even thinking through this aspect of our trade dynamics. Recent key decisions on enhancing trade with India seem to have been taken in haste and without ensuring the fair element of reciprocity. While it is understandable to grant the MFN (Most Favored Nation) status to India, in doing so we needed to protect our industrial strengths by guaranteeing fair

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access to the Pakistani products where we add good value and enjoy a competitive edge over India, e.g. home textiles, toweling, cement, sports goods, surgical instruments, specialized consumer products, processed meat, livestock, etc. Even the EU concessions package does not seem to be that exciting when one takes into account that the majority of their concessions apply to items that fall in the category of feeding cheap raw materials to the European manufacturing, instead of promoting value addition in Pakistan. Also, the strong growth items for us like bed linen, bulk of home textiles, towels, etc have either been excluded or have been placed under the ceiling of tariff related quotas.

3. THE PROJECT INTRODUCTION:a. Objective The objective of the study is to appraise the setting up of a TEXTILE SPINNING unit in Pakistan which will be producing and exporting yarn, throughout this study we will be looking at various aspects that are to be considered while setting up a Spinning unit. b. Scope The scope of the study is to undertake, need assessment, marketing aspects and analysis, technical aspects and evaluation, assessment of organizational structure, financial and economic evaluation of the project, on the basis of which recommendations are to be made about setting up the project. The study is based upon what we have learned in our Project Appraisal course.

c. Methodology and approach The methodology used while making this report is as under: The primary data was collected from visit to local textile mill in Nooriyabad, discussions with the experts in spinning mill regarding various aspects of the industry. Secondary data was collected from government publications, journals and magazines, internet and other sources. Prices of machinery and technical know-how were again obtained from experts in spinning mill

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4. MANAGEMENT APPRAISALa. Sponsors: Sarfaraz Ahmed Khan ( CEO, Zegatron. Inc) Tauqir Ahmed Khan ( CEO, Pak Dewaan Transport Company) b. Sponsors Objective: The objectives of sponsors may vary from one kind to another. Our prime objective is to maintain the companys position as a leading manufacturer of quality products that surpass both national and international standards. Growth, expansion and consistent profitability are the main focus, however to retain our lines of processes at highest level of operational efficiency, we as sponsors have analyzed cost, benefit and risk of the project before investing. c. Proposed Management Structure: Management of the group is professionally qualified.

The business of the company is to be managed under the directions of the board of directors. The board will be responsible for establishing broad corporate policies for the overall performance of the company. The boards corporate governance committee will review the principles and rules regularly in the light of prevailing best practices and forward suggestions for improvement to the full board for approval and the boards corporate governance committee will be responsible for considering matters of social responsibility and matters of significance in areas related to corporate public affairs and the companys employees and stakeholders. The boards job would be to create and maintain a structure that will ensure harmony and cooperation between management and the employees in pursuing the goals and objectives of the organization rather than simply rubber stamping the actions of management. The paramount duty of the board of directors is to select chief executive officer and to oversee the CEO and the other senior management for the competent and the ethical operation of the company.

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The board would identify and periodically update the qualities and characteristics necessary for an effective CEO of the company. With these principles in mind, the board would periodically monitor and review the development and progression of potential internal candidates against these standards. The CEO is in charge of day to day management operations, and is responsible for ensuring that the management and companys functions are organized, run and developed in accordance with the law, articles of association and decision adopted by the board, and the annual general meetings of the shareholders. d. Organizational Chart:

CEODirector Marketing Director Finance Director Production

Chief Financial Officer

Co-Secratary

Finance Manager

Export Marketing Manager

Production Manager

Assistant Finance Manager

Process Department Manager

Stiching Depatment Manager

Store Manager

Process supervisor

Packing Incharge

Stock Incharge

Machine Operators and assistants

Packing Staff

Store Assistants

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e. How objectives will be developed at a Vogue Textile? The objectives will be developed with the help of companys vision and mission. The objectives will be defined within the organization so that management and employees agree to the objectives and understand what their position in the organization is. Participative goal setting is being practiced in the organization. The employees actual performance will be measured and compared with the standards set by the organization. As participative goal setting is applied so it is more likely that employees will fulfill their responsibilities. f. Competitors Dewaan Textile Mills Faisal Spinning Mills Feroze Textile Pvt Ltd Nishat Spinning Mills Saphire Spinning Mills Stallion Textile Mills

5. ENVIRONMENTAL ANALYSIS:a. Corporate Social Responsibility The company is socially responsible and committed to conduct its business ethically and with responsibility. The company considers itself accountable to its stakeholders and has identified three dimensions of performing the social responsibilities which are contribution to economy, environment and society.

The management pursues the strategy by following strategic guidelines to be a good corporate citizen: Execute and implement projects to alleviate the poverty. Providing civic, health, education and housing facilities. Support social causes. Continuously striving to improve greenery, maintain a clean environment around the factory and better housekeeping. Encouraging women employment. Encouraging employment of special people.

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On the corporate social responsibility front the company has launched a program of women empowerment and the employment of special people. At Vogue we believe women are our countrys largest dormant asset which can be absorbed into the national workforce to yield significant gains. The company has provided its labor force with free services of doctor, free medicine in dispensary and ambulance service. Upcountry workers are provided with the housing facility at manufacturing locations helping them to reduce their cost of living. In infrastructure the company is helping the government in building new roads and repairing the old ones near the manufacturing locations.

b. Environmental Health and Safety Policy The company believes that performance is directly related with the healthy employees working in clean, green and unpolluted environment and that all the accidents/injuries are preventable. Therefore they incur cost of health, safety and environment considering it as an investment. The company has designed and structured its work place so as to minimize the accidental risks, provided medical facilities like ambulances and dispensary having full time doctor. We continuously strive to improve greenery, maintain a clean environment around the factory and better housekeeping. Fire fighting, first aid and emergency quick response drills are undertaken as routine. Adhering to energy conservation policy, the company is committed to a minimal carbon footprint.

6. MARKETING ASPECTS & ANALYSISThe global cotton and textile communities are facing historically volatile times, regardless of which part of the supply chain they belong to. Without question, the problem our industry faces are significant - but they are by no means insurmountable. In spite of that Cotton spinning companies were encouraged towards home textiles seeing further growth. Most of companies were operating at full capacity. Countries operating at full capacity would increase their capacity if there was no change in the situation. The spinning sector had grown with export demand and growth in cotton production. Weaving and processing sector follows are valued added sectors which utilize the yarn. The major concentration of industry is in Karachi, Hyderabad, Multan, Lahore and Faisalabad. At present, there are 11.28 million spindles and 198 thousand rotors are installed and nearly 9.85 million spindles and 115 rotors are in operation. The capacity utilization has stagnated at 87% in10

spindles and 58% in rotors during 2010-11. Installed and working capacity of spinning units are given in Table-1Table 1: Installed and production capacity of yarn Spindle Hours Year Loom Hours Worked (Million) Worked (Million) 2000-01 8,954 7,105 59,219 34.1 2001-02 8,967 7,078 61,267 36.3 2002-03 9,216 7,623 64,274 38.7 2003-04 9,592 8,009 70,214 32.6 2004-05 10,906 8,817 72,255 30.3 2005-06 11,292 9,754 74,884 24.8 2006-07 11,266 10,057 76,892 21.7 2007-08 11,834 9,960 75,405 21.5 2008-09 10,514 9,375 56,300 24.0 2009-10 10,101 9,450 75,405 20.15 2010-11 11,280 9,850 76,300 22.19 Source: (i) Federal Bureau of Statistics, Government of Pakistan. (ii)Textile Commissioners Organisation, Government of Pakistan. Installed Capacity Working Capacity

The production of yarn significantly increased from 1.72 billion Kg in 2000-01 to 2.94 billion kg in 2010-11, thus showing an average increase of 6% per annum. Production of yarn is given inTable-3.Table 3: Production of yarn Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Consumption of Cotton Total Yarn Produced Surplus (Million .Kg) (Million.Kg) (Million.Kg) 2,070.1 1,721.0 1,652.7 2,155.2 1,808.6 1,731.2 2,371.3 1,934.9 1,855.4 2,407.6 1,938.9 1,845.8 2,622.8 2,280.6 2,175.2 2,932.6 2,556.3 2,460.5 3,143.5 2,727.6 2,623.2 3,159.2 2,809.4 2,764.4 2,648.2 2,913.4 2,328.2 2,535.3 2,787.4 1,980.5 2,589.8 2,939.0 2,125.3 Yarn

Source: Federal Bureau of Statistics, Government of Pakistan.

However stronger export order books for some segments of the textile industry from around November last year, especially for cotton yarn, have contributed in the performance of manufacturing sector. If external demand for exports remains strong in the markets ahead, the overall manufacturing sector may benefit further. Internationally some economic recovery has taken place which has been termed as fragile and with reference to the regions and countries as uneven. Globally raw material prices have been

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shooting up. We saw some dampening of the buying power of our major export destinations across the globe and there was tremendous resistance from our customers to absorb price increases. In the later part of the year we have seen some improvement in overseas orders along with price adjustments, though partially, to cover the increased costs. Pakistani companies have managed to grab a significant share in the world market thanks to latest efficient high-end technology. Lots of the other companies would like to acquire the new and latest machines. This would give the Pakistani spinning industry further boost, there is significant scope for yarn exports from Pakistan, but only if we can manufacture the right products (count). Further on, Turkey has been processing and converting loads of grey fabric imported from Pakistan into home furnishings and other similar goods, exporting them to Europe at high profit margins, claims an exporter, showing great potential in European export market. To international entrepreneurs, Europe is potentially one of the most profitable markets in the world. At the same time it is also a competitive, sophisticated and dynamic market. To be successful at the European market requires insight in consumer demand for design, quality, presentation and communication. Prices have dropped due to the rise of bulk-order textile, but at the same time, this has increased demand for exclusive and authentic Home Textiles with high quality finishing and (eco) friendly production. USA is a extremely huge market of textile and 60pct of textile are exported to USA alone. Hence with the depreciation of rupee Pakistan would be more competitive with countries like China, India and Bangladesh. Few agents in Europe have already been contracted who will be placing orders according to the requirement of market and production will be based according to their demand. Export of yarn increased from 545 million kg worth US$1.08 billion in 2000-01 to 533 million kg worth US $2.18 billion in 2010-11. Average unit price realization of Pakistani cotton yarn in the international markets is very low compared to that of its competitors. Average unit price of cotton yarn increased from $1.97/kg in 2000-01 to $ 4.10/kg in 2010-11. Export of cotton yarn is given inTable-4.

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Table 4: Export of cotton yarn Quantity Value Year (000Kg) (000 US $) 2000-01 545,134 1,076,063 2001-02 544,217 942,359 2002-03 519,329 928,358 2003-04 499,071 1,126,878 2004-05 504,722 1,056,535 2005-06 671,697 1,382,874 2006-07 665,525 1,428,041 2007-08 554,817 1,300,968 2008-09 523,733 1,114,821 2009-10 625,418 1,433,094 2010-11 532,756 2,185,491 Source: Trade Development Authority of Pakistan.

Unit Value ($/ Kg) 1.97 1.73 1.79 2.26 2.09 2.06 2.15 2.34 2.11 2.26 4.10

Pakistan's leading buyers are Hong Kong, South Korea, China, USA, Bangladesh, Japan, Turkey, and Portugal. Export of cotton yarn is given in Table-5.Table Country China Hong Kong Bangladesh Korea Republic Portugal Japan Italy U.S.A Turkey Egypt Bahrain Malaysia Belgium All other countries Total 5: Country 2010-2011 914,594 281,113 193,430 135,954 77,927 68,134 62,350 38,305 71,697 24,726 18,274 26,313 11,996 276,682 2,201,405 wise Export of Cotton Value: US $ 000 2009-2010 634,029 257,025 99,190 65,469 52,133 30,167 36,162 28,386 33,621 5,566 12,622 14,522 8,471 154,731 1,433,094 2008-2009 366,295 233,181 92,946 60,406 53,698 43,518 31,754 28,587 28,051 17,505 14,221 9,925 9,340 124,755 1,114,182 Yarn

Source: Trade Development Authority of Pakistan.

Pakistan has finally succeeded in securing a European Union preferential trade deal nearly two years after the EU proposed a relaxation of tariffs to help the South Asian country's economy recover after devastating floods. The World Trade Organization (WTO) approved the muchdelayed package covering 75 items at a meeting of its Council for Trade in Goods (CTG) in Geneva. The deal was scheduled to come into effect in January last year, but it was delayed after countries such as Argentina, Brazil, India, Bangladesh and Indonesia raised objections. The tariff changes will enter into force after formal approval by the WTO General Council in March, 2011.

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Under the package, the total export value of the 75 tariff lines is estimated at US$1.03 billion and the average tariff on these products is around 8.86%, or less than a quarter of the $3.80 billion value of the country's total global exports. The Pakistan Cotton Ginners Association (PCGA) has expressed hope that cotton consumption in Pakistan would increase to 13 million as the European Unions waiver of 75 exportable items of Pakistan has enhanced cotton consumption of mills and spinners will need additional 2 million bales (13 million bales), against 11 million bales per season, due to increase in export orders for cloth and yarn. Pakistan will get benefit from access to the market of the EU, which allows exports to more than 3,000 tariff lines duty-free, besides enjoy reduced duties on another 3,000 tariff lines. Exports from Pakistan are currently worth around 3.5 billion Euros per annum, 921 million euros of which comes from these 75 lines. The consumption of cotton by textile mills in Pakistan would increase following decision of World Trade Organization (WTO) to allow duty-free exports of 75 Pakistani items to European Union (EU) markets for a two-year period. Pakistan Cotton Ginners Association PCGA Chairman, Amanullah Qureshi said cotton consumption by textile mills in the country is likely to surge to 13 million bales of 170 kg each, compared to current consumption of around 11 million bales per season. The approval of EU package for Pakistan by WTOs Council for Trade in Goods (CTG) would boost export orders for yarn and fabrics, which would in turn, raise cotton consumption of spinners and textile mills across the country. Effective demand in the past and present: Production + Imports Exports Changes in Stock level

Year 2006 2007 2008 2009 2010 2011

Effective Demand in 000 Kg455,567 372,233 401,188 462,209 443,544 465,77914

Data Taken and formulated From www.Pbs.com.pk

7. TECHNICAL ASSESSMENTThe spinning is the most important and the initial step in fabric manufacturing. The major and main goals of spinning is to produce the quality yarn from raw material, then remove the process faults and later winding the short length bobbins on big packages (Cones) according to the market/customer demands. There are different types of spinning, the most commonly forms of spinning commercially available are: Ring spinning, Rotor spinning, Air Jet spinning, Friction spinning, etc. Spinning in conversion of fibers into yarn, these fibers can be natural fibers (cotton) or manmade fibers (polyester). Spinning also entails production of manmade filament yarn; however, final product of spinning is yarn.

The most suitable location for setting up Vogue Spinning Mill would be Nooriabad near Karachi. Major trade activities are taking place in this city, and our main objective of exporting is easily achieved with its large textile making industry and availability of sea port that assists in the exports. Faisalabad is an alternative location that can be chosen, as there are large numbers of textile units set up there. a. Location Analysis The Textile Unit at Nooriabad near Karachi is proposed of 5 acres for setting up the plant for the following reasons: A market for the sale and purchase of cotton (Raw Material) already exists in Karachi (Punjab for Faisalabad).

Many suppliers of cotton are available in Karachi market to help in the production of yarn.

Infrastructure for export like international airport and seaport already exists.

Skilled labor is already available in Nooriabad Land for construction is appropriate as various textile units are already established. Cheap Land is available

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Availability of Gas for power Generation. b. Techincal Assumptions

Raw material: 450,000Kg of Cotton Waste per Month - 1 month buffer(storage) 5 acres land - 70pct area will be utilized for Processing and 30pct for storage Total electricity required 1 mega watts - 700 KVA for processing - 1 generator required - These are gas generators Cooling Tower for power generation Plant will be in operation for 360 days a year. Machines will be imported in 3 months time. 3 Months Installation time for machinery. Agreement with the machine suppliers have been made regarding the warranty period, and has been set to one year after the initial operation of machines. Blow room

Production ProcessMost spinning is done using break or open-end spinning, this is a technique where the staples are blown by air into a rotating drum, where they attach themselves to the tail of formed yarn that is continually being drawn out of the chamber. Other methods of break spinning use needles and electrostatic forces. This method has replaced the older methods of ring and mule spinning. It is also easily adapted for artificial fibers. The spinning machine takes the roving, thins it and twists it, creating yarn which it winds onto a bobbin. In mule spinning the roving is pulled off a bobbin and fed through rollers, which are feeding at several different speeds. This thins the roving at a consistent rate. If the roving was not a consistent size, then this step could cause a break in the yarn, or could jam the machine. The yarn is twisted through the spinning of the bobbin as the carriage moves out, and is rolled onto a cop as the carriage returns.

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Mule spinning produces a finer thread than the less skilled ring spinning.

The mule was an intermittent process, as the frame advanced and returned a distance of 5ft.It was the descendant of a 1779 Crompton device. It produces a softer, less twisted thread that was favoured for fines and for weft.

The ring was a descendant of the Arkwright water frame of 1769. It was a continuous process, the yarn was coarser, had a greater twist and was stronger so was suited to be warp. Ring spinning is slow due to the distance the thread must pass around the ring, and similar methods have improved on this; such as flyer and bobbin and cap spinning.

Sewing thread was made of several threads twisted together, or doubled. The pre-industrial techniques of hand spinning with spindle or spinning wheel continue to be practiced as a handicraft or hobby, and enable wool or unusual vegetable and animal staples to be creatively used.

Checking

This is the process where each of the bobbins is rewound to give a tighter bobbin.

Folding and twisting

Plying is done by pulling yarn from two or more bobbins and twisting it together, in the opposite direction from that in which it was spun. Depending on the weight desired, the yarn may or may not be plied, and the number of strands twisted together varies.

c. Process layout

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d. Assumption and processing Capacity of plant: 4000 Bags 18 Single (400000 LBS) per month e. Expected production: 3000 Bags 18 Single (300000 LBS) Cotton Waste used -450,000 Kgs approximately Machinery and Equipment for Processing Carding Machine Drawings (Machine) Open End Machine (R and N)

RAW MATERIAL REQUIREMENT:The raw material required for a Spinning unit is: Raw Cotton Some chemicals

Packaging Requirements: Packaging requirements for the end consumers will be done manually. Yarn produced will be packed in Plastic bags, each bag will be designed to hold 45.36kg of yarn In the initial stage the unit will start with bulk supply to processors, hotel industry and will gradually move to retail sales. Availability of Raw Material: Farmers and wholesale market commission agents are the major suppliers of raw material in the local processing industry. The average Raw material prices (cotton) are about PKR.150 per Kg. The expected yield from the raw material means the percentage of output as compared to the input. Yield is mainly dependent on the following factors: Strict quality control on raw material and production process Type of plant Processing methodology

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The expected yield from cotton is 90%. It can vary from 4 to 16% but we expect on average 10% of waste. As far as the waste management is concerned the project has no environment hazards and wastewater to be drained out by its connection with the main drain.

Man power: The total man power requirement for our textile unit is 300 as illustrated below:

# 1 2 3 4 5

Designation Managers & Assistants Technical supervisors Skilled labor Semi Skilled Security staff

Number 10 10 170 95 15

Total

300

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8. FINANCIAL ANALYSIS: Cost of the ProjectRupees

In millions

Land Building Plant and machinery* Miscellaneous fixed assets Preliminary expenses Pre-operative expenses Contingency margin Working capital margin Total Cost

20 42 65 12 6 22 14 23 204

Means of FinanceRupees

In million 74 110 20 204

Share capital Term loans Incentive loan Total Finances

*includes registration and legal charges and test runInterest on Term Loan Is assumed to be 14% whereas on the Incentive Loan it is 7%, debt financing is done via term loan is to be paid off in 8 years.

a. Financial Appraisal: Construction time: Estimated to be one year Proposed Financial Plan: 64% Debt, 36% Equity

(Debt= Rs 110 M, Equity = Rs 74 M , Incentive Loan : Rs 20 M) Interest on Term Loan Is assumed to be 13% whereas on the Incentive Loan it is 7%, debt financing is done via term loan is to be paid off in 8 years.

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b. Key Assumptions: Raw material: Basic raw material required for producing cotton yarn is mixing of cotton waste with different chemicals. Different chemicals are purchased from the market and then mixed internally to get our basic raw material. Raw cotton will cost Rs 150/kg and chemicals will cost Rs. 5/kg of cotton. The cotton to yarn yield will be around 90%. Land & building requirement: Total land required for this project is 5 Acres. 3 acres of land would be would be utilized for installation of the machinery and offices and the remaining area would be left for further expansion and for free movement of transport. The land would cost Rs 20 Million. Building would cost 42 million rupees which will include Utilities: All utilities i.e. water, gas and electricity are required, gas and water are easily available where as electricity would be self generated through gas generators which will require 460800 cubic which will cost Rs 2.5 million /month, which will amount to 30 million a year. With additional 4 million as maintenance of the generator, Water Supply would cost Rs 2 million a year. Total cost of electricity produced would be Rs 6 per unit. Capacity Utilization 60% in first 70% in second and third year, 80% in 4th and fifth, 90% after that Price per bag of yarn will be 12000 rupees and 1 bag is 45.36kg of yarn Raw material % of sales Salaries and wages is 66%

will be Rs. 12 million and will grow at 10% after that

Utilities will cost approximately Rs. 36 million a year and will increase 5% per year. F.O.H % of sales is 1% Admin % of sales is 4% and Selling expense is 2%

Depreciation expense of Fixed assets will be Item Building Plant and Machinery Miscellaneous fixed assets Depreciation rate 5% 10% 10%

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The Requirement for working capital is: Item Raw material Stock in Progress Finished goods Book debts Margin for working capital is 25% Months 1 0.05 0.5 1

Workers Fund is 6%. Tax rate is 35%.

Key Financial Assumptions: Dividend is 12% and will increase every alternative year by 2 %. Cost of equity is 20% Incentive loan is 7% Interest on bank borrowing is 15% Interest on term loan is 13%

c. Annual Loan Repayment Schedule The loan was approved and issued on 1st July 2012. However, our 8 annual installments will begin from July 1st 2013, falling due on the June 30th of every year.

Term loan schedulePeriods 1 2 3 4 5 6 7 8 Opening Balance 110,000,000 96,250,000 82,500,000 68,750,000 55,000,000 41,250,000 27,500,000 13,750,000 Interest 14,300,000 12,512,500 10,725,000 8,937,500 7,150,000 5,362,500 3,575,000 1,787,500 Principal Repayment 13,750,000 13,750,000 13,750,000 13,750,000 13,750,000 13,750,000 13,750,000 13,750,000

Rupees Ending Balance 96,250,000 82,500,000 68,750,000 55,000,000 41,250,000 27,500,000 13,750,000 0

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d. Depreciation Schedule in Millions:Basic Cost20 42 65 12 139

Asset Land Building Plant and machinery Miscellaneous fixed assets Total

Share of Preoperative Cost3.17 6.65 10.29 1.90

Share of Contingency Margin2.01 4.23 6.55 1.21

Total25.18 52.88 81.83 15.11 175

Depriciati on rate5% 10% 10%

Depreci ation2.64 8.18 1.51 12.34

Contingency margin and preoperative expense are allocated to fixed assets on Pro-Rate basis

e. Sales Realization

Sales Realization in Million RupeesYearTotal Capacity(Bags) Utilization Utilized Capacity(bags) Utilized Capacity (kg) Sales Realization Sales Realization(mil lion)

201311904 0 1 59520 26998 27 71424 0000

201411904 0 1 71424 32397 93 85708 8000

201511904 0 1 71424 32397 93 85708 8000

201611904 0 1 83328 37797 58 99993 6000

2017119040 1 95232 431972 4 114278 4000

2018119040 1 95232 431972 4 114278 4000

2019119040 1 95232 431972 4 114278 4000

2020119040 1 95232 431972 4 114278 4000

2021119040 1 95232 431972 4 114278 4000

714

857

857

1000

1143

1143

1143

1143

1143

23

f. Working Capital Requirements in Millions:

ItemRaw material Stock In progress Finished goods Book debts Total Current Assets Less: Margin for Working capital Less: Trade credit for raw material Bank Finance for Working Capital Interest on bank borrowing

Mont hs1 0 1 1

201 339 2 22 60 123 31 39 53 8

201 447 3 26 71 147 37 47 63 9

201 547 3 26 71 147 37 47 63 10

201 655 3 30 83 172 43 55 74 11

201 763 3 34 95 196 49 63 84 13

201 863 3 35 95 196 49 63 84 13

201 963 3 35 95 196 49 63 84 13

202 063 3 35 95 196 49 63 84 13

202 163 4 35 95 197 49 63 85 13

0 1

0

g. Income Statement in Millions:

PROJECTED INCOME STATEMENTYear 2013 2014 2015 20161142. 8 754.2 -17.6 -42.1 -11.4 1142. 8 754.2 -19.3 -43.8 -11.4

In million Rupees

2017 2018 2019 2020 20211142. 8 754.2 -21.3 -45.6 -11.4 1142. 8 754.2 -23.4 -47.4 -11.4 1142. 8 754.2 -25.7 -49.3 -11.4

A) SALES B) Cost of Production Raw material Salaries and wages Utilities Factory overhead C) Adminstration & Selling expenses ADMIN EXPENSES Selling Expense Gross Profit before Interest DEPRECIATION

714.2

857.1

857.1 565.7 -14.5 -38.9 -8.6

999.9

-471.4 -12.0 -36.0 -7.1

-565.7 -13.2 -37.4 -8.6

-660.0 -16.0 -40.5 -10.0

-21.4 -35.7 130.6 -12.3

-25.7 -42.9 163.6 -12.3

-25.7 -42.9 160.8 -12.3

-30.0 -50.0 193.5 -12.3

-34.3 -57.1 226.0 -12.3

-34.3 -57.1 222.6 -12.3

-34.3 -57.1 218.9 -12.3

-34.3 -57.1 214.9 -12.3

-34.3 -57.1 210.7 -12.3

24

Interest on term loan Interest on bank borrowing Interest on incentive loan Operating Profit Preliminary Expense Profit Before Tax Workers Fund Taxation at 35% Profit after Tax Dividend Retained Earnings

-14.3 -7.9 -1.4 94.6 0.7 93.9 -5.6 -32.9 55.4

-12.5 -9.5 -1.4 127.9 0.7 127.2 -7.6 -44.5 75.1

-10.7 -9.5 -1.4 126.8 0.7 126.2 -7.6 -44.2 74.4

-8.9 -11.1 -1.4 159.8 0.7 159.1 -9.5 -55.7 93.9

-7.2 -12.6 -1.4 192.5 0.7 191.8 -11.5 -67.1 113.2

-5.4 -12.6 -1.4 190.8 0.7 190.2 -11.4 -66.6 112.2

-3.6 -12.6 -1.3 189.1 0.7 188.4 -11.3 -65.9 111.2

-1.8 -12.7 -1.1 187.0 0.7 186.4 -11.2 -65.2 110.0

0.0 -12.7 -1.0 184.7 0.7 184.0 -11.0 -64.4 108.6

-8.9 46.5

-8.9 66.2

-10.4 64.1

-10.4 -11.8 -11.8 83.5 101.3 100.4

-13.3 97.8

-13.3 96.6

-14.8 93.8

h. Cash flow Statement in Millions:Constr uction period

Year Sources of Funds Share Capital PBT and Interest added Depriciation Preliminary expenses Increase in term loan Increase in bank borrowing Increase in Incentive loan Total Disposition of Funds Capital expenditure

2013

2014

2015

2016

2017

2018

2019

2020

2021

74.0 116.2 12.3 0.7 110.0 52.9 20.0 204.0 182.1 172.6 159.5 202.5 235.0 221.3 217.8 214.0 209.9 10.3 0.1 10.4 10.4 0.1 0.1 0.1 0.1 149.2 12.3 0.7 146.4 12.3 0.7 179.1 12.3 0.7 211.6 12.3 0.7 208.2 12.3 0.7 204.6 12.3 0.7 200.8 12.3 0.7 196.7 12.3 0.7

175.0

25

Increase in working capital Preliminary expenses Decrease in term loan Interest on tern loan Interest on bank borrowing Taxation Dividend Workers Fund Total Opening Balance Net Surplus/Deficit Closing Balance

83.7 6.0 13.8 14.3 7.9 32.9 8.9 5.6 181.0 167.0

16.4

0.1

16.4

16.4

0.2

0.2

0.2

0.2

13.8 12.5 9.5 44.5 8.9 7.6 113.2

13.8 10.7 9.5 44.2 10.4 7.6 96.2

13.8 8.9 11.1 55.7 10.4 9.5 125.8

13.8 7.2 12.6 67.1 11.8 11.5 140.4

13.8 5.4 12.6 66.6 11.8 11.4 121.7

13.8 3.6 12.6 65.9 13.3 11.3 120.7

13.8 1.8 12.7 65.2 13.3 11.2 118.1

0.0 0.0 12.7 64.4 14.8 11.0 103.1

23.0 23.0 23.0 15.1 38.1

38.1 59.4 97.4

97.4 63.3 160.7

160.7 76.7 237.4

237.4 94.5 332.0

332.0 99.6 431.5

431.5 97.0 528.6

528.6 95.8 624.4

624.4 106.7 731.2

i.

Projected Balance Sheet in Millions:

PROJECTED BALANCE SHEETIn million Rupees

Year

Constructi on Period175

2013175 12.34 162.6 6

2014175 24.68 150.3 2

2015175 37.01 137.9 9

2016175 49.35 125.6 5

2017175 61.69 113.3 1

2018175 74.03 100.9 7

2019175 86.37 88.63

2020175 98.71 76.29

2021175 111.0 4 63.96

AssetsFixed Assets Less: Accumulated Depriciation Net fixed assets Current Assets Raw material Stock In progress

175

39.28 2.19

47.14 2.60

47.14 2.62

55.00 3.03

62.85 3.44

62.85 3.45

62.85 3.47

62.85 3.49

62.85 3.50

26

Finished goods Book debts Cash and cash balance Preliminary expenses Total

21.94 59.52 23 6 38.05 5.33

26.04 71.42 97.42 4.67

26.15 71.42 160.7 3 4.00

30.27 83.33 237.4 3 3.33

34.39 95.23 331.9 6 2.67

34.53 95.23 431.5 4 2.00

34.69 95.23 528.5 9 1.33

34.85 95.23 624.4 3 0.67

35.03 95.23 731.1 6 0.00

204

328. 98

399. 62

450. 05

538. 03

643. 85

730. 58

814. 79

897. 81

991. 73

Year

Constructi on Period74

201374 46.53 96.25 52.92

201474 112.7 1 82.50 63.26 20 47.14

201574 176.8 0 68.75 63.36 20 47.14

201674 260.3 2 55.00 73.72 20 55.00

201774 361.6 7 41.25 84.08 20 62.85

201874 462.0 3 27.50 84.20 20 62.85

201974 559.8 6 13.75 84.33 20 62.85

202074 656.4 9 0 84.46 20 62.85

202174 750.2 7

LiabilitiesShare capital Reserves and surplus Term loans Bank borrowing Incentive loan Trade credit Total

110

84.61 20 62.85

20

20 39.28

204

328. 98

399. 62

450. 05

538. 03

643. 85

730. 58

814. 79

897. 81

991. 73

RatiosCurrent ratio Quick ratio Return on Assets Return on Equity Gross Profit Margin Net Profit Margin Debt -Equity Ratio Interest Coveragex x % % % % x x 2.32 1.84 17% 75% 18.3 % 7.8% 1.76 5.52 2.33 2.67 19% 101% 19.1 % 8.8% 1.76 6.99 2.33 3.66 17% 101% 18.8 % 8.7% 1.76 7.44 2.33 4.35 17% 127% 19.4 % 9.4% 1.76 9.04 2.33 5.08 18% 153% 19.8 % 9.9% 1.76 10.68 2.33 6.26 15% 152% 19.5 % 9.8% 1.76 11.48 2.33 7.40 14% 150% 19.2 % 9.7% 1.76 12.52 2.33 8.52 12% 149% 18.8 % 9.6% 1.76 13.80 2.32 9.77 11% 147% 18.4 % 9.5% 1.76 15.41 27

Ratio OCF/Sales Ratio DSCR

%

9.5% 2.86

10.2 % 3.80

10.1 % 4.05

10.6 % 5.23

11.0 % 6.60

10.9 % 7.16

10.8 % 7.84

10.7 % 8.66

10.6 % 9.69

WACC:The weighted average cost of capital considering 36% of equity 54% of term loan and 10% of incentive loan is calculated to be 12.5% , provided a tax rate of 35%.

j. Free Cash Flow Statement in Millions:Year NOPAT Deprecia tion Change in fixed assets Change in Net working capital FCFF Wacc Discount ed Cash Flow 2012 201384.86 12.34

2014106.3 6 12.34

2015104.5 3 12.34

2016125.7 9 12.34

2017146.9 1 12.34

2018144.6 7 12.34

2019142.2 8 12.34

2020139.7 1 12.34

2021136.9 6 12.34

83.65 13.55 1.125

16.41 102.2 9 1.266

0.13 116.7 4 1.424

16.43 121.7 0 1.602

16.44 142.8 1 1.802

0.16 156.8 5 2.027

0.17 154.4 5 2.280

0.18 151.8 7 2.565

0.19 149.1 0 2.886

(204.00)

12.04

80.82

81.99

75.98

79.26

77.38

67.73

59.20

51.66

NPV IRRWACC

382.0 7 41.93 % 141.9 3% 954.6 3% 0.04

201.4 4% 5077. 77%

285.9 1% 4083. 11%

405.7 9% 2999. 01%

575.9 3% 2479. 60%

817.4 2% 1918. 86%

1160. 16% 1331. 23%

1646. 62% 922.2 9%

2337. 05% 637.9 9%

Discou nted CFNPV

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k. PROJECT NPV Net Present Value (NPV) analysis is the process of taking a current investment and projecting the future net income from this investment. It is used in capital budgeting to analyze the profitability of an investment or project.

The NPV calculated for the project is positive 382.07 million which makes the project viable and acceptable.

l. PROJECT IRR (Internal rate of return) The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero is IRR. Generally speaking, the higher a project's internal rate of return, the more desirable it is to undertake the project.

Here IRR of our Project is 41.93% which is quite high and makes the project attractive. m. SENSITIVITY ANALYSIS:

SalesOptimistic Normal Pessimistic NPV 454 382 309 IRR 46.30% 41.93% 37.34% Change of 10%

Raw materialNPV IRRChange of 5% of sales Optimistic Normal Pessimistic 549 382 214 53.43% 41.93% 29.90%

Even after an increase of some cost associated with the project, it still indicates a slight change in the NPV and IRR.

9. ECONOMIC ANALYSIS:Textile products are a basic human requirement next only to food. Textile industrys share in Pakistans economy in terms of GDP, exports, employment, foreign exchange earnings, investment and contribution to the value added industry; make it the single largest determinant of the growth in manufacturing sector.

29

Textile share of over all manufacturing activity is 46 % Export earning is 68% Value addition is 9% of GDP As a provider of employment 38%.

Pakistans textile industry is a major contributor to the national economy in terms of exports and employment. Pakistan holds the distinction of being the worlds 4th largest producer of cotton as well as being the 3rd largest consumer of the same. In December 2010, textile exports were US$ 10.62 Billion and accounted for 55% of the total exports.

Any development in the country does not restrict its effects to one or two sectors rather; the implications of any such development can be felt across multi-sector ways. Our project will have a positive effect on the economy in the following aspect. a. Increase in National Income Textile sector alone contributes 9.5% to the GDP. Development in industrial sector increases the number of investment, employment and production and hence has a higher contribution towards GDP. b. Contribution to tax The textile industry's overall contribution of taxes in 2012-13 is expected to reach Rs. 23.5 billion, including payments of withholding taxes and applicability of lower rate of sales tax of 4%-6% on local supplies. Our project will have a positive contribution in the current tax structure. c. Economic Stability The rapid growth of the textile sector has contributed towards the stability of the country. When finished goods are domestically available, it helps keep prices down and fluctuations due to international market influences are less likely to strike populace. It will also bring about a positive change in the balance of payment of the country, as textile sector has been able to bring about structural changes in the foreign trade since years. d. Agricultural Development Textile sector development is directly related to the agricultural development. Increased demand of cotton contributes towards better life of farmer by offering greater market for the raw material. It is evident from the fact that if number of textile mills increased from 3 to 600 and spindles from about 177,000 to 805 million respectively in 1947 to 2010 then cotton 15bales increased from 1.1 million bales in 1947 to 10 million bales by 2010.30

e. Greater Employment The project will contribute toward the employment of the people as it has been already mentioned that the textile sector employs more than 38% of the total workforce of the country. Collateral Industrial Development The development of one industry gives birth to the expansion of the other related industries. Our project will be viable enough to help to develop more industries like colors and dies, plastics, printing, machinery etc. Enhanced Government Revenues Any industrial development is bound to increase government revenues. Though textile sector is still zero rated for the purposes of sales tax on exports yet the tax on domestic supply and income tax contribute greatly to government revenues.

10.Conclusion:Textile sector of Pakistan has suffered great losses in terms of closures of local suppliers of textiles and apparels, also a great decrease in revenues since the global financial crunch. There is still room for growth in the textile sector, the government of Pakistan is making efforts to help the industry move forward. Although, the numbers look good, IRR is 52.47% while NPV is positive, the current political and law and order situation makes investment in Pakistan fragile. People perceive Pakistan as a corrupt state also evident from Pakistans high ranking by Transparency International in its recent survey of Worlds most corrupt state. Moreover, Pakistan is in the grip of terrorist activities that has severely impacted the law and order situation in the country. Economically, Pakistan is facing the problems of high inflation, budget deficit resulting in high government borrowing and GDP growth rate falling for the past two consecutive years. In addition, interest rates have been raising making financing more and more expensive. Since the project is highly profitable and there is no problem at all as far as demand is concerned, doing this project is a must. We conclude that on the basis of survey of spinning Mill that the Yarn is necessary product so its demand increases day by day. There is no chance to decrease the demand of Yarn. Pakistan is an agricultural country and it plays a very important role in our economy. Availability of raw material is very easy. So, conclusion is that the spinning Mill is a profit motive business because no chance of decrease of demand. Our recommendation to new investors is that they must invest in spinning Mill. So, they take step forward to comeand invest or to start this business, and also contribute in theeconomic as well as social growth of Pakistan.

31

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11.RECOMMENDATIONTextile sector is responsible for more than 50% of countrys total export earnings but unfortunately due to lack of attention, poor governmental policies and power crisis this sector has been neglected and is almost on verge of a permanent shutdown if no measures are taken to secure this sector. Nevertheless textile industry has a lot of potential which can be explored and if right decisions are made it could flourish again in coming time. We have come up with such measures and recommendations that related to our project and could be very useful for the industry if properly implemented and executed. Cotton prices has always been a threat to textile sector and as mentioned earlier that an inventory of one month will be maintained at all times to cater market needs and demands we have proposed a solution to counteract the inventory losses which will occur due to fluctuating cotton prices. For that the board will be contacting Pakistan Mercantile Exchange to provide us a platform for hedging our cotton inventory. Through this platform we will be able to enter into an agreement to buy cotton at a future date and specified price which will save us from unforeseen disasters and floods which typically raises cotton prices. Cotton can also be imported from India to meet our raw material needs and decrease the burden on companys expenditures

-

-

Textile exports have suffered due to increased global competition and poor domestic performance. Although high quality products are manufactured in Pakistan but due to poor packaging and bad marketing decisions creates a negative impact on the potential customers in foreign countries. As Eurozone offers trade concession and India has also opened its doors for trading our executives should go and visit the potential markets in order to create awareness about our company and do direct marketing to market our products. On import of cotton deals can be made to export or sell yarn to the same country or use barter system to market our products and target the potential market

-

Our company should be more focused on importing state of the art machinery which would reduce the manufacturing costs and improve efficiency by reducing the amount of cotton used and give the maximum output. No index entries found.As per our policy total outlay is financed by 66% debt which also poses a threat to companys financial expenditure. Double digit inflation and depreciating currency

33

affects the monetary policy which usually results in higher interest rates. This step could increase the interest costs and thus lead to higher financial burden for a new venture. Debt from banks and financial institutions should be borrowed on fixed interest rate rather than floating rates to save ourselves form future costs

Above mentioned recommendations are expected to yield some benefit to the company and its sponsors which would result in higher growth and profitability in the future. So what is the way forward? First and foremost, we (the Pakistani textile industry) in guidance from the policymaker (the Textile Ministry) need to be more proactive in our decision making by focusing on long-term positioning, instead of current or short-term profit taking. Turkey, India and China started basing their textile policies on such a premise, way back in the 80s and see where they are today. Their textile sector continues to grow in all its dimensions and the sheer strength of product value addition over time has supplemented the development of their domestic markets and in helping them to evolve as leading textile machinery suppliers of the world. Pakistan in this regard still has a long way to go. Further, going forward our industry needs enhanced transparency, predictable government policies, better supply chain management and an awareness, both within the government and the private sector, of using the newly developed global hedging instruments to achieve stability in cotton and MMF (Man-made Fiber) supplies, boost production, and to alleviate possibilities on future tight stock situations. Second, all participants in the industry can show leadership by advocating that the government/Ministry does a better job of statistical reporting. Companies can also lead by participating in surveys of production, consumption and stocks when such data is requested. Common use of metric measures can help all stakeholders to speak one language of statistics that the bureaucracy can understand. Third, we need to remember that there have been notable improvements in the efficiency of trade in textiles since the ending of the Multifibre Arrangement (MFA) in 2005, and attempts by anyone (association, lobby group, etc.) to take it backward through requests to the government for trade protection should be strongly discouraged. Finally, the Textile Ministry should take its cue from their Indian, Chinese and Bangladeshi counterparts by actively collaborating with the World Bank to make use of its initiative to deliver training to industry managements, trade associations and the regulatory body on how to effectively use various hedging mechanisms and devise intra-industry policy frameworks to ensure smooth and long-term functioning of the entire industrys supply chain process.

34

12.APPENDICES:

Source: TCO All Right Reserve By APTMA Last Updated July 09, 2012

35

36

37

38

13.Bibliography www.aptma.org.pk www.tradingeconomics.com www.finance.gov.pk www.pakboi.gov.pk www.pbs.gov.pk www.textile.gov.pk www.pbs.gov.pk

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