KOHINOOR TEXTILE MILL:

Introduction:

Textile sector has a very large share in the pie of Pakistan's exports and GDP. This sector
earns 65 per cent of total foreign exchange and about 40 per cent of the work-force is
employed1in1this1sector.
In the year of 2000-01 the growth in quantity exported in textile sector was far more
impressive. The registered growth ranged from 2.8 per cent (knitwear) to 38.2 percent
(synthetic textiles). But Pakistan's textile sector due to its precarious condition and
performance is continuously in danger of losing its share in the world export and the
GDP of Pakistan. Especially, the post quota period will prove real test of performance of
Pakistan's1textile1industry.
All analysts and world observers are cynical about the performance of Pakistan's textile
sector and shed their doubts about its ability to compete in the world market, especially,
in the post-quota period. Presently, Pakistan has the tenth position among exporters of
textile and its position is continuously declining in terms of value. China earning $39
billion at the top and India.

Table 1: contribution of textile industry

Contribution to total exports 60% (US $ 5.2 billion)

Contribution to manufacturing 46% of total manufacturing
Contribution to value addition 27% of industrial value addition
Contribution to GDP 8.5% of total GDP
Sector Employment 38% of total employment (15 million)
Skilled & Un skilled Ratio 70 : 30
Market Capitalization 12% of total market capitalization
Salaries and wages 44 billion per annum
Total sector Investment 31% of total investment ( Rs.140 billion)
Technology Medium
Source of machinery Japan, Germany, Switzerland, Belgium,
China

History:

Kohinoor textile mill limited (KTML) was established in 1953, initially with 25000
spindles and 600 looms with further expansion in 1954. Initially KTML was a part of
Saigol Group. Saigol Group represents a golden era of history of industries and
commercial development in Pakistan.

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The group established industrial projects in the field of textiles and also entered into the
field of construction, engineering and banking (owing 55% of shares of UBL). Prior to
nationalization of private sector industries in the early 1970’s, that group was the largest
group in Pakistan. After nationalization, group focused on textile only.

In 1976, KTML became a part of Kohinoor Maple Leaf Group (KMLG). KMLG was
born from trifurcating the Saigol Group in 1976. it is now a leading textile manufacturer
in the country consisting of one composite textile unit, two weaving and one spinning
unit. The group is involved in the number of other industrial activities including cement
and power generation. The group participated in the acquisition of Maple Leaf Cement
Complex in 1992 under the government privatization program.

Table 2: major companies of Sehgal group

This group manages the following companies.

Kohinoor Textile mill ltd, Kohinoor Textile composite.

Gujarkhan division, Kohinoor weaving
division
Maple Leaf Cement Factory limited Cement manufacture
Kohinoor raiwinds mill limited Textile weaving
Kohinoor dyeing mill limited Textile dyeing
Kohinoor hosiery mill limited

Departments of KTML:

• Processing
• Folding
• Spinning
• Electric
• Production planning & control
• Quality assurance
• Marketing/export
• Finance/accounts
• HR/admin
• Electronic data processing
• Purchase

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 Figure 1: major product:

Quilt Bed
covers sheets

Table
Valances
cloths

Pillow
Curtains
covers

Sofa
covers

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Purpose of Human Resource Department in an Organization:

The purpose of HRM is to contribute to organizational effectiveness and efficiency. So

the purpose of HRM is basically related to two general goals that are not always in
harmony. Achievement of effectiveness may be at the expense of efficiency.

For instance, if a company find itself in the financial difficulties, it may be necessary to
lay off employees, despite the financial and emotional hardships involved. If the
performance of some employees decline, it may be necessary to dismiss them or transfer
their jobs despite their vested interest.

(Human Resource Management Framework and Practices, 2001, 3)

Major activities of HRM:

Activities of HRM are shown below:

Figure 2: activities of HRM

HRM activities

Advice Service Execution Coordination Audit

KTML has also HR department that is operating successful in the organization.

Hierarchy of HR department in KTML

Almost all relative permanent organizations have a number of features in common: each
has objective, each has a formal structure as well as informal structure.
An organization is more than the crowd and group. Fro an organization to exist, there
must be some central goals. These goals are translated in to operational objectives. An
organization requires people to be brought together to participate in common effort to
achieve objectives. In most private sector organizations, the central organizational goals

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 are profit which flows from enhanced productivity and greater employee loyalty which
leads to an increased survival period especially in an ever changing global market and
environment.

The formal structure is partly delineated by the organization chart, which shows the
primary areas of authority and responsibility and the reporting relationships. Other
documents, such as procedure and practices manuals, job descriptions and policy
statements, are all efforts to describe the specific aspects of the formal structure.

KTML has also some formal structure of the employees which have different authority
according to their designation, which leads to the accomplishment of the organization

Following is the flow chart of HR department of KTML.

Manager
HR/ADMIN
(1)

Office Asstt Peon

(1) (1)

Asst Manager

Dy. Manager IR & LWO

HR/Admin (1) HRO Administration
Officer (1)
THS
O
P.R Office Office Peon FIRE
Asstt Asstt Asstt (1)
(1) (1) (1)
Time Officer
(1)
Excha Photostat
nge Machine
(3)
Transport Medical Mosque
Ch Fire Dispatc Mid
Security Section Section
Section her Office
(02)
HRO Peon HR Inspect (13)
or (1) (4) (1)
(1) (1) Co-
Ord
(1)

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 Office Record
Asstt (2) Clerk
(1)

Sanitation Guest Colony Gate

Time & House Inspector
Keeper Gardening (3) (3)
(6) (1)

Peon
(1)
Certification:

The society for human resource management offers opportunities for individuals to
distinguish themselves in the field by achieving a level of proficiency that has been
determined by Human Resource Certification institute.

(Human Resource Management, 2002, 38)

All KMLG companies are ISO-9000 certified by Lloyd’s register quality assurance, UK
and are listed on the stock exchange with the capitalization of $333 million. They are also
certified under ISO 9001-2000 under QMS and SA 8000.

Classification of Employees:

Employees of the company can be classified as follows;

Table3: classification of employees

Grade Classification
E-1 to E-4 Workers
M-11 & M12 Supervisory staff
M-13 to M-20 Management staff

Job evaluation seeks to rank the entire job in organization and place them in a hierarchy
that will reflect the relative worth of each. It’s important to note that this is a ranking of
jobs, not people. The ranking that results from job evaluation is the means to an end, not
an end n itself. It should be used to determine the organization’s pay structure.

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 Hierarchy chart of managerial level is given below in figure 4

MANAGING
DIRECTOR

GENERAL MANAGER GENERAL MANAGER HOME

SPINNING TEXTILE

GENERAL MANAGER
GENERAL MANAGER FINANCE
PROCESSING

GENERAL MANAGER MADE- GENERAL MANAGER HUMAN

UPS RESOURCE /ADMINISTRATION

DY. MANAGER
MANAGER Q/A
MARKETING YARN

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 MAMAGER GENERAL MANAGER POWER
PPC AND UTILITIES

ELECTRICAL
MANAGER PURCHASE
ENGINEER

MANAGER GREY
FOLDING
Existing number of employees

The existing numbers of employees are shown in graph as below

Figure 5: existing no of employees

4000
3500
3000
labors
2500
2000
management/
1500
supervisors
1000
500
0
total
employees

Percentage of different types of employees:

The existing numbers of employees are shown in graph as below

Figure 6: percentage of types of employees

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 120%
100%
80% perm anent
em ployees
60%
contract employee s
40%
20%
0%
total
em ployees

Equal Employment Opportunity:

Equal employment opportunity is nothing more than the principle of merit applied fairly
in the workplace. The merit principle just requires that a person race, sex, marital status
or nationality should not influence employment, promotion, training or obtaining other
benefits or opportunities in employment.

EEO means that there should be no discrimination on the basis of sex, race, religion or
nationality etc. KMLG also follows the EEO concept.

Figure 7: percentage of workers

m ale(70%)
fem ale(23%)
non-m us lims(7%)

Human Resource Information Systems:

To assist in the HR inventory, organizations usually have implemented a human resource

information system. KTML has its own HR information system named as Knet and HR
MS. KTML has its own website named as www.kmlg.com

Replacement Chart:

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Replacement chart is the report which highlights the position vacant in future and the
information about the person who is going to fill that position. KTML do this practice
according to labor law. All permanent employees have to give one month notice if he is
going to leave the job.

Job Analysis:

Job analysis is the process of obtaining valid information about the job this information is
necessary for human resource planning, organizational planning, recruitment, selection,
remuneration planning and decision making and training. Job analysis also gives
information about the desirable characteristic of people who can adequately fill the
requirement of those jobs

((Human Resource Management Framework and Practices, 2001, 239)

KTML also go through the analysis process and sometimes also benchmark other textile
mills like Nishat Textile Mill etc.

Employment Function:

Recruitment and selection combine together to give employment function

Recruitment:

The quality of an organization’s human resource depends upon the quality of its recruit.
Basically recruitment is the process of finding and attracting capable applicants for
employment process begins when new recruits are sought and when their applicants are
submitted. HRM changes should be expected to deal with knowledge as they are
responsible for recruitment. For this thing, they have to keep some points in mind.

• Proper information should be provided to applicant.

• Schedule interview should be taken
• Policies and environment should be informed to applicant
• Applicant should be given guarantee of success.
• Policies should be well define regarding hiring part time and temporary employees
• Strategies should be well developed regarding hiring skill-full persons.

KTML advertise for the job. They recruit their labors on weekly basis i.e. on every
Wednesday and Thursday. For other technical and managerial staff they have their data
bank in which they maintain CV of applicants. KTML prefer experienced persons as their
employees and also offer internships to fresh graduates. Application for employment
contains following items:

Figure 8: particulars of employment form

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 Personal data

Name of dependants

Relative in KTML

Previous submission of
application in KTML

Any criminal record

Detailed education record

Employment record

References & certification

of statement

Selection:

The selection process is a series of specific steps used to decide which recruit should be
hired. This process starts when recruits apply for employment and ends with hiring
decision.

The selection committee consists following members.

Head of HR representative Finance

departments representative

The selection process of KTML includes the following steps;

• First of all applicant submit his/her employment application form.

• Then after short listing, they take test from applicants.
• After again short listing they conduct interviews.
• Finally they select one final applicant and two will be there in their waiting list.
• They offer the job to the applicant after their medical examination. They have
their own doctors to examine workers and supervisor and for managerial level

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 they require some routine lab test results. After that company doctor will suggest
that whether the person is physically fit or not.

For taking interviews, KTML have their own interview rating forms which contains;

Table 4: particulars to interview rating form

Description Outstanding Good Average Below Poor Remarks

Average
Appearance/mannerism 8 6 4 2 0
communication 8 6 4 2 0
judgment 8 6 4 2 0
education 12 9 6 3 0
Job knowledge 12 9 6 3 0
Experience 12 9 6 3 0
General knowledge 8 6 4 2 0
I.Q 8 6 4 2 0
Pose/maturity 8 6 4 2 0
Personality attitudes 8 6 4 2 0
Potential 8 6 4 2 0
Total marks

They also rate the applicant for his strength and weakness points for the particular job as
well as mention that for which area the applicant is more suitable.

Referral Employments:

Employment of relatives and referrals in the group companies shall be as per following
procedure

• Applicant is obliged to declare his/her relationship with any employee working with
the company or any other group company
• This information must be revealed by the applicant in section 14 of the application for
employment
• Prior approval of the MD/CEO is mandatory before any offer of appointment is made
to an applicant whose relative is employed at the company or any other group
company.

The employee must ensure that proper information is divulged by his/her relative/referral as
the case may be

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 • If at any point in time it is ascertained that the incumbent has divulged any
incorrect information to the company disciplinary action may be initiated against
the individual which may lead to dismissal from service

Salary Packages:

• All appointments in any grade shall normally be made keeping in view the
qualification and experience of the person and approval of competent authority
• Pay and allowances shall accrue from the date on which an employee reports for
duty in writing at the place and time intimated to him/her, provided that he/she
reports within the first half of the official working hours, otherwise salary will
accrue from the following day.
• Labors will get wages according to Punjab minimum wage rate. Increase in the
rate will increase the wages of labors also. Now-a-days it is RS. 3000 per month.
• Salary slips will be issued to all the employees on monthly basis, clearly
indication all the details.

Basic salary schedule:

Salary to management level according to market

level

Wages to workers according to their skill level as

prescribed by Punjab minimum wage rate

Probation and Confirmation:

• All initial appointments shall be placed on probation for minimum period

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 indicated against each

Table5: probation period

Category Grade Probation period

Management and M-11 to M-20 Six months

supervision staff
Workers E-1 to E-4 Three months

• In the event of an employee failing to show satisfactory progress during the

probation his/her services shall be dispensed with
• During the period of probation the service of an employee may be terminated by
the company or the employee may leave employment at any time without
assigning any reason and without any notice
• Any employee who leaves with or without notice or whose services are
terminated with or without notice (as the case may be) shall not be absolved of the
obligations to obtain proper clearance from the company in writing
• The confirmation report is being sent to concerned department head for comments
on the performance of probationer 30 days prior to date of confirmation
• Upon such confirmation the employee shall be deemed to be in the permanent
service of the company and shall be entitled to all the privileges and rights
accruing to him from the date of joining the service, except as may be specifically
provided in any relevant rules of the company

Double Employment:

No employee is allowed to engage in performing double employment either full time or

part time or any other assignment as these assignments may affect the performance of the
duties and hence do not promote the interest of the company. More over such activities
are also against the terms and conditions of the appointments letter where it is clearly
stated and employee agree that he/she will devote his/her entire, exclusive and undivided
attention to the performance of his/her duties and shall not in any other manner undertake
any other assignment.

Re-Employment:

It is the policy of the company to discourage re-employment. All such cases must have
prior approval of the MD/CEO who will consider market conditions, reasons for leaving,
performance, conduct, attendance etc. Employment with another company within group
shall be deemed as re-employment.

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Training and Development:

High performance firms display a greater commitment to training and skill development.
This practice a core HRM activity is related to the other ideas about the need for
continuous, improvement and development overtime.

(Human Resource Strategy, 2001, 7)

Training and development properly pursued becomes a central feature of the culture of an
organization. Correctly done it is valued and reinforced by all levels of managements.
This is regardless of the form it takes, whether it is peer group training management
development programs or directed at the service an employee gives clients.

The company may require any of its employees to undergo training within or outside
Pakistan at any time and for any duration under such terms and conditions as may be
prescribed from time to time. Training process can be described as;

Figure9: training process

15
 KT

Identify
training
Needs

Evaluate Design
Training
program training
process
outcomes program

Deliver
training
program

ML has its own training schools for off the job training. they outsourced their of job
training to NUST, PIMS, IMDC, Pakistan institute of quality, Pakistan institute of
management and to different chambers of commerce. They also have on job training for
three years according to labor law and in return they give them certificates. In KTML
initially six month training is given, if the trainee find fit for the job he will become the
permanent employee. They have also off job training for labors related to first aid, family
planning and other indoor or outdoor trainings.

A program with the name of in house training management is also available for
management and supervision level. For example KTML has home textile for making bed
sheets. The labors were not available in Rawalpindi so they have to bring the labor from
Faisalabad which increased their cost. In order to fix this problem they are giving training

16
for last 6-8 months.

Training procedure includes;

Number of employees per session 15

Number of days for test 6

Employee Performance:

Performance measures include almost astonishing arrays of types and forms. Hundred of
different type of rating formats have been proposed and tested and it is possible to make
judgments about operating results, employee behaviors or person centre attributes. In
addition measurement can be at individual level, work team or organizational level and
rating strategy can be comparative.

The performance of every employee shall be assessed at least once a year. The annual
assessments shall be made in the first instance by his/her immediate superior and
reviewed by the department head

Any remarks recorded by the reporting superior and accepted by the reviewing authority
which reflects adversely on the performance and conduct of an employee shall be
communicated to the employee in case the company feels that such communication may
be remedial or result in an improvement in the employees’ performance and conduct.

KTML has three kinds of appraisal form which are;

• For management staff

• For supervisors
• For workers

KTML appraise its supervisors and managers on annual basis. If the employee is not well
efficient, training will be there for him but if he is working remarkable there will be more
chances for his development. KTML appraise its employees on rating system as well as
some descriptive questions are also present in the appraisal form related to employee
development, present responsibilities, goal set for next performance period and other
recommendations.

Promotions:

All promotions shall make on the basis of annual appraisal reports at the sole discretion
of the management and cannot be claimed as a matter of right by any employee.
Promotions will be considered against a vacant opening in the approved manpower

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budget.

Existing positions may be up-graded in cases where the assignment has altered
qualitatively/quantitatively and/or the incumbent has acquired increased knowledge,
skills and experience to meet the altered requirements.

Transfers:

Service of any person appointed through transfer from associated, subsidiary or holding
company shall be treated as continuous service in the company and he/she will be
appointed in the similar/equal grade in which he/she was working in the company from
where he/she is appointed through transfer. His/her pay and other allowances in the
company shall also not be less then the pay and allowances, which he/she was getting
from the company from where he/she is transferred.

Employee Benefits:

While designing the compensation program in any organization, critical area is that what
benefits should be provided to their employees. Because benefits is the tool to motivate
the employee which can increase the productivity. KTML is providing lots of benefits to
its employees some of them are as under;

Leave:

Company has devised leave policy according to factory act 1934 to grant different kinds
of leave to its employees in order to facilitate them to attend their domestic and other
social responsibilities. No body can claim leave as a matter of right and it will be subject
to discretion of the sanctioning authority.

The types of leaves available to employees are:

• Casual leave:34 holidays are allowed per year

• Sick leave: sick leave can also be granted to employees
• Earned leave: in two years 16 medical, 13 accumulated holidays are available.
• Maternity leave: maternity leaves are also available to females, one and half
month before the birth of child and one and half month after that.

Leave Without Pay:

There is no provision of leave without pay in law. However extra-ordinary leave without
pay may be granted at the discretion of the competent authority in special circumstances
involving absence from duty.

Absence from Duty:

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Even a single absence results in break of service hence, making an employee ineligible
for grant of earned leave for that year. If an employee remains continuously absent from
duty for more than ten days, his/her services will be liable to termination as per labor
laws. The habitual absentees can render the individual to disciplinary action as per law.

General Rules for Grant of Leave:

For grant of any leave the employee concerned will have to apply in writing, on
prescribed leave application form.

Application for leave must be put to immediate supervisor well in time before the
commencement of leave except in emergency. However in case of sickness the leave
application may be submitted on the same day of sickness or first day of arrival on duty.

Mere submission of an applicant shall not be deemed to be valid for proceeding on leave
until formal prior sanction has been obtained.

Extension of leave may be allowed I special circumstances only and subject to the
entitlement of the employee.

Any employee as a matter of right shall not claim leave. Grant of leave shall be subjected
to exigencies of the company business.

Leave Encashment:

Leave encashment is not permissible for employees in grade M-13 and above. However
in case an employee has applied for earned leave and he cannot be spared due to exigency
of job, the leave may be encashed with prior approval of MD/CEO for workers and
supervisory staff.

In case of separation from company, other than dismissal on account of misconduct, the
un-available earned leaves can be encashed in case of worker or supervisory staff.

Festival Holidays:

Public holidays at place of work shall be allowed I accordance with the provisions of
Factories act, 1934.

Personal Protective Equipment:

It is policy of the KMLG to prevent exposure of staff to harmful substances and physical
hazards as far as is reasonably practicable.

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Management is responsible for promoting good occupational hygiene practice and
ensuring a safe working environment. Where applicable the personal protective
equipments are provided to relevant employees free of cost.

All staff is responsible for practicing good occupational hygiene and safe work practices
ad preventing hazardous exposures of physical or chemical nature to themselves and co-
workers. This responsibility includes:

• Wearing appropriate clothing and using personal protective equipment when required.
• Maintaining personal protective equipment in a clean and functional condition.
• Periodically inspecting personal protective equipment and reporting any problem or
defects to management.

Admission in Educational Institution:

Any employee of the company wishing to continue his/her professional qualification will
have to obtain prior approval from the department head/HR department. This is necessary
to ensure that it does not affect the performance of his/her duties.

Participation in Election:

No employee of the company is allowed to participate in election of any local, provincial

or federal office, or hold public office at any of the local provincial or federal level.

Grievances:

It is recognized that the grievances of any employee should be resolved promptly and
equitably in the interest of both the individual and the company and for this purpose a
grievances handling procedures is in existence.

The employee should approach his supervisor in the first instance to inform him of his
grievance.

The employee may then see the department head if still not satisfied the department head
shall try to resolve the problem in a befitting manner. The department head may seek
assistance from HR department.

Housing Facility:

The company provides available housing accommodation to its employees in order to

ensure attendance at the work place and also to facilitate employees whose presence is
considered essential depending upon the nature of their jobs. The company shall provide
housing facility to the policy mentioned hereunder.

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Employees of distant areas and on essential services/jobs will be given priority while
making allotment of residences.

A full department wise quota for a particular category of housing/accommodation shall

be worked out on the basis of strength of the employees of that department, which shall
form the basis for allotment for workers and supervisory grade.

Allotment of house/accommodation to employees in management cadre shall be made by

the MD/CEO after considering merit of each case in consultation with the department
head/HR manager.

Other facilities are:

• Transport facility.
• Subscribe food for all.
• Sport activities in a year to motivate their employees.
• Child care centre is going to be made soon.
• Death transport facility.
• School facility.
• Payment for utilities facility.

Health and Safety:

Not only are businesses today more concerned about the health and safety of employees,
but legislative requirements have placed heavy burdens on both companies and their
managers. It is incumbent on them to ensure that hazards are removed, accidents are
reduced and that unhealthy environment factors such as heat, dust and noise are
minimized job analysis can be helpful in this process. It can also help in clarifying what
responsibility employees should take for their own health and safety.

Company accepts responsibility for providing and maintaining a safe working

environment. It is the employee’s responsibility to follow company’s health and safety
policies and to report any unsafe condition to his/her supervisor immediately.

Drug Free Environment:

According to act of 1988, workplace should be drug free. KMLG is committed to make
aware employees of the consequences of drug abuse affecting the employees themselves,
other employees, third party and the surrounding environment and influencing employees
to create safe, healthy and drug free workplace and to comply with the law prohibiting
manufacturing, distribution, dispensing, possession and use of drugs in the workplace and
to maintain a drug free culture.

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The use and sale of controlled drugs is a criminal offence under the controls of narcotics
substances act 1997 and therefore reportable to police.

The manufacture, distribution, dispensation, possession, use or presence in the body

system of controlled substances and illegal drug is prohibited at any time during working
hours on company premises, which includes the colony.

Employees are prohibited from reporting to work if being under the influence of a
controlled substance.

Use of drugs on or off the job can affect employee’s health, safety and job performance
while the company has no desire to interface unnecessarily upon the private lives of its
employees, it must ensure that employees report to work in a condition which will enable
them to perform their duties safely and efficiently. KTML is making an effort to control
smoking on work place in addition to this no drug can be used which can effect the
output directly.

Own Fire Section:

KTML has its own fire section is case of any fire emergency. It has its own fire fighting
stock as well as first aid department.

Table6: fire section

Item number
Fire distinguishers 700-800
Water nozzles 70-80

Insurance Policy:

KTML providing health and life insurance to every one in their organization. The
workers get insured under security insurance act 1964 where as the manager level gets
insured from EFU Insurance Company.

Retirement:

It is the policy of the company that all employees having attained the age of 60 years
shall retire from the service of the company.

Service Certificate:

A service certificate will be issued to a person at the end of his service, after the person
has cleared all dues and returned all property of the company

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Extension of Service:

The company may extend the services of any supervisory/management personnel with
specific experience who has attained the superannuation age of 60 years subject to the
approval of MD/CEO.

In the case of extension to general manager/director after attaining the superannuation

age of 60 years the MD/CEO of the company will forward the case for approval of the
chairman.

Resignation:

The department head may accept the resignation of any employee of the company.

Confirmed employees of the company may resign from their posts by submitting a letter
of resignation and by giving on month notice or surrendering one month's pay in lieu

Other Major Policies:

Other policies followed by KTML are;

Age Limit for Acquiring Job:

Table7: age limit for job

Minimum 18 years
maximum 60 years

Display of Company ID card:

It is incumbent upon employees to display their company ID card while on duty. The card
shall be displayed at prominent place at the front pocket of the shirt.

Working Hours and Overtime:

The management reserves the right to determine the working hours of its offices, sites
and works and for different categories of employees from time to time. Their hours shall
be within the limits prescribed by the law and there shall be at least one holiday for every
employee in each week.

The working hours for all categories/types of employees shall be displayed on the notice
board. Females can only stay in the organization up to 7 o’ clock in the evening.

23
Common working time is as under;

Table8: timings

level timings
Managerial level 9.00 a.m -5.00 p.m
Supervision level Shift base system
Labors working in spinning, processing 24 hours job
and folding

All duty timings are clearly mentioned in duty roster as well as shift base system is
usually has constant timings. The management reserves the right to require any of all its
employees to work beyond normal working hours as per law.

Attendance:

All employees shall be at their work place at the time fixed and notified. They may be
required to swipe their company ID card before starting work as may be laid down and
notified from time to time. For this purpose they time attendance machine.

An employee who, after swiping the proximity card, is found absent from his/her place of
work during working hours without permission or sufficient reason shall be treated as
absent and action may also be taken as per law.

Absence from work must be reported personally and directly to the supervisor as soon as
possible, but not later than the scheduled start time, in addition to speaking with the
concerned supervisor on the first day of and each subsequent day of absence. Unreported
absences will result in disciplinary action.

To curb habit of lack of punctuality, it will be discretion of management to take

disciplinary action against the defaulters.

Without prejudice to the above the management also expects that if any employee plans
to come late, he/she should make a telephone call and inform HR department
immediately. The employee may talk to the department head for briefing about the jobs
to be taken care of, but in all cases the information must be passed on to HR department
so that the individual is not marked absent at the first default.

Dress Code:

All employees are expected to present a neat, clean and business like appearance at all
time while on company business. Attire shall be appropriate for the job and location of
the employee’s work.

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Where applicable, the uniform is being provided to the eligible employees free of cost.
The employees shall wear the uniform while on duty. It is expected that employees will
take good care of their uniform.

Discipline:

All employees of the company shall maintain high standards of discipline at all places of
duty as well as in the mills residential colony.

Every employee shall conform to and abide by the rules ad regulations of the company
and shall observe, comply with and abide by all orders issued by the management.

Disciplinary action shall not be taken against an employee without providing him/her an
opportunity to explain his/her position in connection with allegations made/charge
framed against him/her.

The matter of misconduct or breach of discipline by a workman shall be governed by

individual and commercial employment (standing orders) ordinance 1968.

Company Property:

Company property assigned to an employee is for his/her sole use and is not to be loaned,
given to, or used by another, individual. Loss, theft, breakage must be reported
immediately to the HR department or stores in-charge as appropriate. Every employee is
responsible for the proper use, care and safeguarding of company property assigned to
him/her. All company property must be returned separation from the company.

Suggestions from Employees:

Company has installed suggestion boxes/boards in company premises so as to enable its

employees to give their suggestions to the management directly.

Harassment:

It is the policy of KMLG to maintain a place of work free of discrimination, sexual

harassment and exploitation of its employees. Sexual harassment may be described as
unwelcome sexual advances and other physical and expressive of a sexual nature.

Discrimination of any kind is absolutely prohibited on the work place. Sexual harassment
is considered a form of discrimination. Coercive sexual behavior and unwelcome sexual
attention are offensive, and undermine the safety, security and dignity of employees.
Harassment is considered indiscipline and subject to disciplinary action under company
rules.

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 As KTML has suggestion boxes fixed in the premises of organization where any
employee can deliver any sort of problem he/ she is facing in writing. It can be related to
harassment. Formal or informal investigation will take place and fire the person
immediately if he/she will be proved the guilty party.

Presents/Gifts:

The company does not allow its employees to accept presents/gifts of any sort in their
official or personal capacity. From any person/party directly connected or likely to be
connected in any way with company business. Contravention of this rule is considered
serious breach.

General Rules:

An employee shall not at any time while in service or thereafter, disclose and shall make
his/her best efforts to prevent disclosure of any trade secrete, manufacturing process,
knowledge or information in connection with the business, or affairs of the company or
any other matter, literature or things which may come to his/her knowledge or
possession, in the course of performance of his/her duties, to any person, firm or
company except concerned officers of the company entitled to receive such information.

Any matter or literature received from the company during the tenure of the service of an
employee should be returned to the company at the time of separation of his/her services
due to any reason including his resignation.

An employee shall as soon as possible notify the HR department of company of any

change in his/her personal status, including change of address, telephone number or
change in marital status.

Written, typed or cyclostyled or printed material shall not be distributed, circulated,

exhibited or posted within the company’s premises or placed on notice boards without
prior approval of the management.

An employee having a suggestion or constructive criticism to offer should submit in

writing through his/her department head.

Business of personal nature or not connected with the duties of employee concerned,
shall not be transacted in the company or on its premises at any time.

No record of the company shall be taken out of the company premises without specific
authorization of the competent authority.

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The use of company resources for private purpose is not allowed. Similarly the
employees are expected not to utilize their subordinates for private purpose during the
office hours.

Conclusion:

As we know that Textile products are a basic human requirement next only to food. The
demand for textiles in the world is around $18 trillion, which is likely to be increased by
6.5% in 2005. China is the leading Textile exporter of the world's total exports of US$
400 billion in 2002. Country wise major market shares of the textile exporting countries
are: China: $ 55 billion, Hong Kong: $ 38 billion, Korea: $ 35 billion, Taiwan: $ 16
billion, Indonesia: $ 9 billion.

This industrial sector in Pakistan has been playing a pivotal role in the national economy.
Its share in the 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. Textile share of over all
manufacturing activity is 46%, export earning is 68%, and value addition is 9% of GDP
and as a provider of employment 38%.

Though Pakistan has emerged as one of the major cotton textile product suppliers in the
world market with a share of world yarn trade of about 30% and cotton fabric about 8%,
having total export of $ 7.4 billion which accounts for only 1.2% of the over all share.
Out of this Cotton fabric is 0.02%, Made-ups are 0.18% and Garments is 0.15%.

In contribution made by textile industry major role is played by Kohinoor Maple Leaf
Group who is exporting textile materials to other countries and earning good revenues.
That success is only possible when the internal system or the organization is well

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structured. In order to maintain well developed internal structure, HR department pays
the important role. Once the HR department is well organized it will leads to organized
departments as well as to a flourishing industry like KTML.

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