Maple Leaf Internship Report

Maple Leaf Cement factory
COMSATS Institute of Information

Technology Lahore Campus
Maple Leaf Cement Factory Limited
ADVISOR
SIR SHAKEEL ASLAM
SUBMITTED BY
Yaser Arshad
CIIT/FA05-BBA-001/LHR
SUBMISSION DATE
September 15, 2008
COMSATS Institute of Information Technology Defense Road off

Raiwand Road Lahore
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore 1
ACKNOWLEDGEMENT
I offer my humblest thanks to ALMIGHTY ALLAH, The most Beneficent and the Most
Considerate and the entire source of all knowledge and wisdom. I thank ALMIGHTY,
ALLAH, who gave me the aptitude to do this project efficiently and successfully. I
offer my humblest respects to the HOLY PROPHET HAZRAT MUHAMMAD (Peace
Be upon Him) who is, forever a torch of guidance and knowledge for humankind as a
whole.
I faced a lot of difficulties during this phase of developing internship report. But Allah
gave me a lot of patience and due to the continuous encouragement of my teachers
and other people concerned; I was able to complete this project.
It’s not very easy for me to find the right words to express my gratefulness to our
praiseworthy advisor Mr. Shakeel Aslam, his enthusiastic interest, in time and useful
suggestions, continuous encouragement, vivacious supervision and kind behavior
throughout my internship period.
Apart from my respectable advisor, there are many other people who have been very
helpful to me right from the beginning. I would whole heartedly acknowledge the entire
management of Maple Leaf Cement Factory Limited who provided me this opportunity
to achieve this practical experience under their valuable supervision and helping
suggestions to complete this report.
I’d like to mention Mr. Abdul Rauf, Mr. Ilyas, Mr. Ijaz Ahmed, Mr. Khalid Sahrif, Mr.
Omer, and last but not least Ms. Hina Noreen. I also pay my regards to all others whose
names can not be included due to the scarcity of space and time. At the end I’d like to
thank Samya Tahir and Bilal Ahmed, my class fellows and my internship colleagues as
well, whose company was a cause of support and motivation, because without naming
them this acknowledgement will be incomplete.
Yaser Arshad
1. Executive Summary
This report is based on my nine weeks EXPERIENCE at MAPLE LEAF CEMENT

FACTORY LIMITED as an internee from 19th June to 24th august. THE COMPANY IS
a highly reputed organization. Maple Leaf is one of the pioneers of the cement
industry in Pakistan. It owns and operates grey and white cement plants located at
Daudkhel District Mianwali
The salient features of this report are: Maple Leaf’s background, its vision, corporate
values and goals. This report focuses its business operations including major areas
as its overall marketing strategies, its production and operations, and it’s Human
Resource. The Financial Analysis of the firm has been done in detail. The Ratio
Analysis, Common Size Analysis and Index Analysis of the firm are really a
fascinating experience of mine.
This report accentuates the details of my learning and observation at Maple Leaf. It
also includes the actual forms that are used in this organization to carry out basic
business processes. And I am sure that this report will provide you a complete and
clear image of organization.
2. Introduction
2.1. Mission Statement:
“The Maple Leaf Cement Factory Limited stated mission is to achieve and
then remain as the most progressive and profitable company in Pakistan in
terms of industry standards and stakeholders interests.
The company shall achieve its mission through a continuous process of
having sourced and implemented the best leading edge technology, industry
best practice, and human resource and by conducting its business
professionally and efficiently with responsibility to all its stakeholders and
community.”
2.2. Corporate Strategy:
We at Maple Leaf Cement Factory Limited manufacture and market different
types of consistently high quality cement, according to the demanding
requirements of the construction industry. Our strategy is to be competitive in
the market through quality and efficient operations.
As a responsible member of the community, we are committed to serve the
interest of all our stakeholders and contribute towards the prosperity of the
country.
2.3. History and Background:
The Cement Industry:

In August 1947, Pakistan inherited four cement plants having total installed capacity of
0.471 million tons per annum and total production of 0.300 million tons.
By 1953-54, the production increased to 0.660 million tons against demand of one
million tons. As the private sector did not have resources, the public sector in the form
of Pakistan Industrial Development Corporation (PIDC) took the lead and established
two cement plants – Maple Leaf and Zeal Pak. These units came into production in
1956, increasing the production capacity to one million tons per annum. By mid-sixties,
the private sector acquired sufficient confidence, expertise & capital and established the
following three plants:
• Valika Cement (now Javedan) in Karachi in 1964

• Ismail Cement (now Gharibwal) at Gharibwal in 1965 and
• Pak Cement (now Mustehkam) at Hattar in 1965.
Nationalization:
Under the Economic Reforms Order, all private sector cement plants were nationalized
in 1972 and State Cement Corporation of Pakistan (SCCP) was formed to manage
cement plants. Installed production capacity was substantially expanded during this
period. The capacity of Javedan and Mustehkam were doubled and new plants were
installed at Thatta, Dandot, Kohat, D.G.Khan and Daudkhel. As a result, total production
capacity expanded by 2.45 million tons per annum.
During this period, growth in demand of cement was around 7 percent per annum. New
capacities were not coming up to match the demand. Consequently, Pakistan had to
start importing cement in 1976-77 and continued to import cement till 1994-95.
Re – Introduction of the Private Sector:
In order to meet the increasing demand for cement that led to continuous shortage
since the mid 70s, the private sector was again allowed to establish cement plants. As a
result of change in policy, seven projects having capacity of 2.54 million tons were
installed in private sector and simultaneously, SCCP also brought in four more projects
with a total capacity of 1.6 million tons. Resultantly the total capacity of the cement
industry enhanced to the level of 8.5 million tons by the end of 1990.
The units allowed in the private sector were Cherat (1985), Pakland (1985), Attock
(1986), Dadabhoy (1988), Essa (1988), Fecto (1989) and Anwarzeb White Cement
(1988).
Kohinoor Maple Leaf Group:

The Kohinoor Maple Leaf Group (KMLG) is one of the largest groups in Pakistan. It is
one of the leading manufacturers of the country with a composite textile unit, two
weaving units, two dyeing units and one spinning unit aside from its cement operations.
The group also has presence in power generation, and insurance sectors consisting of
a total of seven group companies, all of which are ISO 9002 certified. In 1999, KMLG
entered into a contract with oracle to upgrade all Management Information Systems
including the integration of its financials, cost and management accounting, production,
marketing, and human resource functions.
Out of 7 companies of KMLG, 5 are listed on the stock exchanges in Pakistan with
operations comprising of vertically integrated textile operations, power generation, and
cement production.
A) Textiles: this is the core focus of KMLG. The group has 50 years experience in
manufacturing and employs a strategy of diversified marketing and a focus on
customers globally. The group has effective quality control due to the combined
synergies of vertically integrated textile manufacturer.
B) Spinning: Kohinoor Textiles comprises of two spinning divisions located at
Rawalpindi (KTML) and Gujjar Khan (KGM). There are a total of nine units with
151,000 spindles capable of spinning a complete range of coarse and fine count
yarn from natural and man made fibres. In particular, Kohinoor specializes in fine
count yarn for high thread count home textile products. The total production of
yarn is 28,800,000 Lbs per annum. Five units with 85,500 spindles are at
Rawalpindi and four units with 65,500 spindles are at KGM. Both divisions are
modern facilities with state of the art machinery from Europe and Japan.
C) Weaving: Kohinoor Raiwind Mills (KRM) is the weaving division of Kohinoor
Textiles Mills and is situated in Raiwind. Since the company’s inception in 1991,
the management of KRM has invested in state of the art technology and
equipment making it one of the most modern weaving plants in the country.
Presently there are 204 wide width air jet looms capable of producing over 25
million linear yards of greige fabric per annum. By the end of 2006 the total
number of looms will increase to 312 with the addition of a third shed. All 204
looms have been supplied by Picanol (Belgium) and are of the following models:
Picanol Omni P800 and Picanol Omni Plus
D) Dyeing and painting: Kohinoor has a state of the art dye house equipped with
European and Japanese technology to pre-treat, dye and print fabric with an
average weight range of 75gsm to 350gsm. The dyeing and printing capacity is
48 million meters per annum and the capacity for pre-treatment and bleaching is
6 million meters. The maximum width capacity for bleaching is 3.4 meters and for
dyeing and printing is 3.2 meters.
E) Cement: Maple leaf Cement factory limited.
Maple Leaf Cement Factory Limited:

Maple Leaf is one of the pioneers of the cement industry in Pakistan. It owns and
operates grey and white cement plants located at Daudkhel District Mianwali.
History:
Maple leaf Cement Factory Limited was established by the Pakistan Industrial
Development Corporation (PIDC) in 1956. It was later incorporated as “Maple Leaf
Factory Limited” in April 1960. The company started as a producer of grey Portland
cement, with a wet process plant of 400 tons per day (“tpd”) clinker capacity installed
with the assistance of the Canadian Government, in 1960 a second wet process plant
Portland cement was installed with a clinker capacity of 600 tpd.
In 1969, a company by the name of White Cement Industries Limited (WCIL) was
formed with a 50 tpd white cement plant.
In 1974, under the PIDC Transfer of Company & Project Ordinance, the management of
two companies, namely MLCFL and WCIL were transferred to the newly established
State Cement Corporation of Pakistan (SCCP), which controlled the entire cement
industry in Pakistan after nationalization.
In 1983 SCCP expanded WCIL’s white cement plant by adding another unit of the same
capacity parallel to the existing one.
In 1986 SCCP also set up another production unit of grey cement with a capacity of 600
tpd based on wet technology under the name of Pak Cement
Privatization
Under the privatization policy of the government, the ownership and management of
MLCFL, WCIL, and PCCL, was transferred to the Kohinoor Maple Leaf Group. All three
companies were merged into Maple Leaf Cement Factory Limited on July 1, 1992. The
arrangement worked well as the plants of all three companies were within a common
boundary wall, sharing facilities such as raw material supply, power supply, water, and
other infrastructural facilities.
Management
MLCFL is a part of the Kohinoor Maple Leaf Group, one of the largest groups in
Pakistan. It is primarily being run by Mr. Tariq Sayeed Saigol, the son of late Mian
Sayeed Saigol, founder of the Saigol Group. Mr. Tariq S. Saigol is an ex- chairman of
All Pakistan Textile Mills Association. He has also been the Chairman of the
Government’s Export Committee as well as a director of SBP and member of the Prime
Minister’s Committee of Tariff Reforms, Resource Mobilization, Tax Reforms and Down
Sizing of the government. He is also the architect of Textile Vision 2005.Other senior
management has vast experience in the textile industry. Top management id the hub of
strategic decisions, with middle management playing implementation role.
2.4. Company’s Policy

“Quality Policy”
MLCFL’s policy for quality is based upon the mission statement.
MLCFL manufactures grey ordinary Portland cement for industrial and domestic use.
MLCFL shall achieve its policy through the application of quality management system;
by identifying, understanding, managing, and maintaining a quality system of inter
related quality processes which are structured to comply with the requirements of ISO
9001: 2000 (E) and all applicable regulatory and statutory requirements.
MLCFL shall continually improve the effectiveness of Quality Management System for
the organizations over all performance and efficiency. All the employees of MLCFL
believe in
“Continual improvement through team work”
MLCFL understands that the involvement of people at all levels is equally beneficial for
both the organization and its employees and the effective decision at all functions shall
be based on the analysis of data and information.
MLCFL believes that the suppliers are important part of the organization and play a key
role in the smooth operation of plant.
This policy is issued to clearly indicate the attitude of the company with regard to quality
and customer satisfaction for the long term of MLCFL’s competitive position, reputation
and employees’ satisfaction.
3. Organization Structure and Strategies

3.1. Organizational Structure:
CEO
Figure 1
CFO
Export Finance HCD Procureme Accounts IT Marketing

Marketing nt /
Purchase
Manager Manager GM AGM / GM GM AM / SAM

(1) (1) (1) DGM (1) (1) (1)
(1)
Dm / SDM DM / SDM AM / SAM Manager DM / SDM AM / SAM

(1) (1) (1) (2) (3) (2)
AM / SAM AM / SAM JE DM / SDM AM / SAM JO

(1) (1) (1) (1) (3) (2)
JE Mgt. JO AM / SAM JE
(1) Trainee (1) (1) (1)
(1)
C.E.O 1
Assistants JE JO
C.O.O 1 (2) (6) (1)
D.O.P 1
C.F.O 1
G.M. 8
D.G.M 2
A.G.M 3 Assistants
S.M. 17 (2)
Managers 15
The Figure 1 shows the organization structure of the KMLG head office, Lahore. At
present there are 105 employees working in the head office.
Empowerment
Maple leaf has centralized operations, major decision making power lies in the hand of
the central head quarters however delegation of authority has been done in such a way
that the senior management has enough power to direct employees without informing
the top management at the central office so as to avoid operation hindrance only .
3.2. SWOT Analysis:
Strengths:
• The company is situated in Daud Khel, district Mianwali. This location is rich with
raw material that is required by the cement industries for the production of
cement.
• Maple leaf is operating with a present production capacity of 1.5 mntpa. Further
expansion of 2.0 mntpa is expected in the near future which will make MLFCL,
the third largest capacity wise player after Lucky cement and D.G. Cement.
• The production of the cement in maple leaf is completely automated.
• The company has imported the machinery for dry process from Denmark. The
use of this advance machinery has helped the company produce good quality
cement with much efficiency.
• The company is going to import the waste heat recovery plant from Denmark,
which will help the company to cut the power expenditures.
• Maple leaf cement factory is the only cement factory that produces both grey
cement and white cement.
• It also has developed a niche market by being the only manufacturer of oil well
cement in Pakistan.
• Maple leaf is one of the pioneers of cement industries in Pakistan, established in

1956. This long time span of the company has helped it earn customer loyalty all
over Pakistan.
• Maple leaf, having a good brand image, has the advantage to charge their
customers at a higher price than the other competitors.
• The price of maple leaf cement is high in the international market as compared to
its local competitors who are involved in the exports as well.
• The company brand image is very strong in the market, both local and
international.
• The brand equity of maple leaf is $ 500 million
• Maple leaf is an ISO certified company. The company has obtained the ISO 9001
- 9 making it a reliable producer for production of quality products in the
international market.
• Maple leaf along with Lucky cement, are the only two companies to obtain the
BIS certification from India.
• The maple leaf cement factory compensates its employees, better than all the
other industries.
• The basic salary of the company employees is higher than even the salary
package offered in the industry.
Weaknesses:
• The location where the cement plant of maple leaf is located is a very remote
area.
• Maple leaf faces problems in hiring good quality of employees for the factory
place due to this reason in spite of a good salary package.
• The company has been established since 1956. Therefore the technology being
used by the factory, i.e. the production of cement through wet process, is old
and yields low profits and high costs.
• Although, maple leaf is taking steps to convert its wet process plants into dry
process plants, but at present these plants are causing the increase in per bag
cost of the cement.
• The cost of freight charges further reduces the retention price of the cement,
hampering the profitability of the company.
• Hence maple leaf is extraordinarily sensitive to the changes in cement prices.
Excess capacity expansion, over supply of the product in the market and price
pressure over the company negatively affects the company.
• The location of the company limits the ability of the company to distribute its
product all over Pakistan.
• According to Rizwan Butt, the means of transportation for the company is main
problem at present for the company.
• This problem has affected both the local and export sales of the company.
• Maple leaf is short of trucks to distribute their product in local markets.
• India is a very big market for the cement industry, as there is a construction
boom in the country. But due to the shortages of trucks and the Pakistani train
wagons not meeting the standards of Indian authority, maple leaf is unable to
avail the golden opportunity at its fullest.
• The company has borrowed heavy loans from the financiers, further increasing
the debt burden over maple leaf.
Opportunities:
• At present the demand for cement in the domestic market is increasing. Maple
leaf is benefiting quite well at present.
• If Kala Bagh dam is commissioned, MLFC will be the major beneficiaries in the
industry.
• At present, maple leaf along with Lucky cement is the only two cement factories
that have received the BIS certification.
• This has given maple leaf a golden opportunity to capture the Indian market with
very less competition.
• The demand of cement outside Pakistan has been increasing rapidly, providing
maple leaf a good chance to explore these markets.
• Maple leaf is also exploring new markets for the potential customers of white
cement, which will give maple leaf a competitive edge against the competitors.
• The conversion of wet process plants to dry process plants and the shifting of
company from coal based production to waste heat production will cut down the
company’s expenses and increase company’s retention prices.
Threats:
• The company is highly vulnerable to price competition since it faces higher cost
of production per bag.
• The rocketing increase in prices of furnace oil, and even 300 % increase in the
price of coal has been affecting badly to company’s profitability.
• The export to Indian market highly depends on diplomatic relations between the
two countries.
• The day after day terrorist attacks and the suicidal bombing have caused the
unrest in the country. Along with creating a sense of non security among the
citizens of Pakistan, these activities have proved to be hazardous to the
manufacturing companies as well. The incident of rocket launcher fired on the
grid station in Mianwali caused a great damage.
3.3. PEST Analysis:
Political factors
Political factors include government regulations and legal issues and define both formal
and informal rules under which the firms operate. The rule and regulations that the
cement industries follow are as follows:
Tax Policies
o According to the tax memorandum 2008, the cement industries have to
abide by the following rules:
o The tax rates on telephones will be collected at the rate of 10 % of the
amount exceeding Rs. 1000.
o General sales tax is enhanced from 15 % to 16 % including sales tax on
services under the Provincial Sales Tax Ordinance, etc.
o Due to the increase in the general rates of sales tax, the rate sales tax on
the natural gas has been increased from 24 % to 25 %.
o Duty on cement (that includes Portland cement, aluminous cement, slag
cement, super sulphate cement and similar hydraulic cements, whether or
not colored or in the form of clinkers) has been enhanced from Rs. 750 to
Rs. 900 per metric ton.
o The government has put special excise duty of 1 % as well.
o Duty on the services such as goods insurance, fire Insurance, theft
Insurance, theft Insurance, marine Insurance, other Insurance, non-fund
services provided by banking companies or non-banking companies has
been enhanced from 5 % to 10 %.
o The rate of tax for the collection at the import stage for all imports of goods
has been reduced to 2 % from 5 %.
o According to the tax memorandum 2008, the importer will not be taxed at
the importing stage of goods such as mineral fuels, mineral oils and
products of their distillation.
o Under SRO 575 (I)/ 2006, raw materials, machinery, components &
equipments etc. were exempted from the whole of the sales tax and
subjected to the custom duty at 0 to 5 per cent, with the condition that
such imported goods were not locally manufactured. Now the condition of
not being locally manufactured for the import of capital goods worth US $
50 million or above for setting up of new industrial projects has been
removed.
Employment Laws
The labor policy issued by the Government of Pakistan lays down the
parameters for the growth of trade unionism, the protection of workers' rights,
the settlement of industrial disputes, and the redress of workers' grievances.
The policy also provides for the compliance with international labor standards
ratified by Pakistan. At present, the labor policy as approved in year 2002 is in
force. The minimum wages for unskilled worker is Rs. 2,500. The minimum
threshold of income for taxation of salaried individuals has been enhanced
from Rs. 150,000 to 180,000 per annum.
Environment regulations
At present Pakistan industries follow the Pakistan Environmental Protection Act,
1997.
o The Pakistan government has now become conscious of the
environmental pollution.
o It has set some specific laws that all the manufacturing industries have to
follow according to the Pakistan Environmental Protection act, 1997.
Political stability
o The present situation regarding the political stability is negative in
Pakistan.
o This political instability has been in process since the fate full attack of
9/11, 2001.
o This instability has affected the businesses adversely.

o The poor security situation and uncertainty leading up to the parliamentary
elections in February have caused a capital flight from Pakistan, and its
rupee currency has fallen 13% against the US dollar since January 2008.
o However, the stepping down of Pervaiz Musharraf as president has shown
some hope for the reviving of the political stability.
o According to the survey conducted by IRI (international republican
institute), 52 % of the people expected that the things will get better now
that there is a new government
o But still there are many factors that are prevailing up till now and are the
cause of the unrest.
o More over, the geographical region where Pakistan is located, having the
neighbors such as India and Afghanistan, and the pertaining international
situation regarding the war against terrorism, not only the direct investors
have stepped back even the investors who have made investments in the
country are backing up.
o The demonstrations, social unrest, suicidal attacks and terrorist’s attacks
on different areas as well are highest risks to the company’s operations.
Economic factors
Economic factors affect the purchasing power of potential customers and the firm’s cost
of capital. Following are the factors affecting the macro economy:
Economic growth
o According to the report of UN Economic and Social Commission for Asia
and the Pacific Pakistan maintained its momentum in 2007, slightly more
than the 6.6 % for 2006.
o The manufacturing sector growth continued 8.4 % in 2007, which is
slightly more moderate than 10 % for the year 2006.
o The industry also suffered from a drastic decline in profitability as the

combined industry profits declined by 56% from Rs 12.3 billion in FY06 to
Rs 5.3 billion in FY'07.
o Growth in Pakistan’s exports and imports slowed sharply in 2007: the rate
for exports fell to 3.4%, for imports to 6.9%.
o Pakistan has formulated sound macro economic policies that will help the
Pakistani economy to grow stronger but the recent political violence and
uncertainties could slow down the growth.
o However according to the report, including all the sectors Pakistan’s
economic growth is expected to remain strong at 6.5 % in 2008.
Figure 2
Inflation rate inflation 1996 - 2007
14
o Pakistan, with a population of 12
10
about 16 million people has
CPI index
8
undergone a remarkable macro 6
4
economic growth during last few
2
years, but the core problems of the 0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
economy are still unsolved. year
Inflation is one of these core

problems.
o The inflation in year 2008 has recorded to be the highest according to the
Federal Bureau of Statistics.
o Consumer Price jumped to 17.21% in March 2008 according to the
statistics given by Federal Bureau of Statistics.
o In April 2008, the Pakistan inflation accelerated at it fasted pace and the
inflation is still increasing.
o The reason behind this is that in April 2008 the food prices rose 25.5
percent from a year ago and fuel prices climbed 8.6 percent and the
tension among the political leaders.
Interest rates
o The monetary policy of Pakistan is controlled by the state bank of
Pakistan.
o The state bank, in order to control the inflation has taken measures and
tightened up the monetary policies.
o Pakistan has raised its main interest rate by 1 percentage point to 13 % to
help fight inflation.
Figure 3
Exchange rates
The exchange rates of Pakistan with
respect to the U.S. dollar, has declined.
The Pakistani rupee has depreciated
since the proclamation of emergency rule
in November 2007. In other words we can
say that the value of the rupee has fallen
as the time passed by. In figure 3 we can
see the rise in the value of dollar in the
moth of July. Minimum was recorded as Rs. 71.2556 and maximum as Rs. 76.2183
Social factors
Health consciousness
o Health consciousness among the people of Pakistan has been increasing
day by day.
o The citizens of Pakistan are getting aware of their duties in order to
maintain the healthy environment.
o Government is taking several steps in order to educate, how important it is
for the people to live in the healthy environment.
o The government discourages the operation of the industries with in the city
by charging these factories with environmental charges.
o In spite of this discouragement, there are many factories that are running
inside the city, discharging poisonous gases and chemicals.
o By the passage of time, the people as well along with the government are
discouraging such activities and demand for clean environment.
Technological factors
Automation
o This is the era of high competition
o The Pakistani industries not only have to compete among them selves but
with the international market as well.
o Pakistan is steadily automating particularly its development sectors to stir
quality production and ensure skilled management, as it would ensure a
good place for the country in the global competitive market.
o The ERP is being implemented or is in the phase of being implemented in
the cement industry.
Technology incentives
o According to the report issued by the ministry of technology, the
government will invest in various fiscal and non-fiscal incentives to
nurture, develop, and promote the use of IT in organizations, to increase
their efficiency and productivity.
o The strategies focus on promotion of venture capital industry through
incentives, recognition of software development as a priority industry for
financing by the banks and DFIs, creation of investment friendly
environment, and building investors confidence
Rate of technological change

o In recent years, technology has been seen to be progressing at very fast
rate all over the world.
o It has helped to raise income and alleviate poverty in the developing

countries.
o The change in technology can be seen in the Pakistani industries as well.
PEST Analysis and Maple Leaf:

According to the Chairman All Pakistan Cement Manufacturers Association (APCMA),
Aizaz Mansoor Sheikh the increase in taxes has made Pakistani cement the highest
taxed cement in the world, while addressing to the daily times. The excise duty has
been increased from Rs 750 per ton to Rs 900 per ton along with additional excise duty
of 1 percent. Increase of General Sales Tax from 15 percent to 16 percent has
increased the threat of double taxation as General Sales Tax is charged on excise duty
paid value.
The minimum wages has also been increased by the government of Pakistan which is
another increase in the expense on behalf of the cement producers. However, Maple
Leaf is a private organization and therefore the employee pays aren’t regulated by any
government stipulations. There aren’t specified strategies or labor laws that protect the
labor wages at the factory. Maple Leaf considers employee satisfaction as a major
contributor to their success in the market and therefore has undertaken extensive
planning to ensure the employed labor force is happy with there salary packages.
Emissions of carbon dioxide, sulphur dioxide, and particulate are the major sources of
air pollution at thermal power plants and in the cement industry in Pakistan. These not
only pose nausea and potential health hazards to human beings, they also damage
landscape and wildlife. Maple leaf cement factory has brought into considerations such
problems and taken steps to control such problems. The factory is going to install waste
heat recovery plant worth PKR 1600 million. To carry out this project, the factory has
take loan from Habib Bank Limited worth Rs. 1160 million.
The political stability in Pakistan is at unrest. Due to this, the cement Factories along
with Maple leaf are facing problems regarding the investments they have made. The
stock market has shown sheer down fall since the political unrest. Although the market
share index showed improvement after the resignation of Pervaiz Musharraf on 18th of
August. But still the failure to reinstate the judges on time and many other issues has
made the share index to slope downward once again. The day after day terrorist attacks
and the suicidal bombing have caused the unrest in the country as well. Along with
creating a sense of non security among the citizens of Pakistan, these activities have
proved to be hazardous to the manufacturing companies as well. The incident of rocket
launcher fired on the grid station in Mianwali caused a great damage. Maple leaf and
other cement factories along with other industries located in the area have to either shut
down their factories for the time being or generate their own power, like maple leaf.
The economic growth in the manufacturing sector was stated to be 8.4 % in the year
2007. According to the federal bureau of statistics, Pakistan has hit record inflation
during 2008. The SBP, in order to control the inflation, it has to tighten the monetary
policies by increasing the interest rates. The increase in the interest rates has made the
industries to pay more interest against the long term loans that they had borrowed at
lower interest rates.
The Pakistani currency has been depreciating since the emergency declared by Pervaiz
Musharraf in November 2007. This caused a great problem to the industries who have
taken loans in the foreign exchange currencies like FE 25 loans etc.
The investors in the cement sector are well aware of the importance of technology in the
present day and they quite well realize the returns they can get using advance
technologies. The cement factories such as D.G. cement, lucky cement and may other
factories is using latest technologies. However, the old cement industries such as maple
leaf are now shifting towards the new technology as well.
4. Marketing
4.1. Market Potential:
Domestic
The demand growth rate of the cement industry in the local market is expected to grow
at the rate of 13 % capacity growth rate. The factors that affect the domestic growth rate
of cement industries are as follows:
• Strong GDP growth
The cement industry is highly cyclical in nature and depends largely on the economic
growth of the country. There is a high degree of correlation between the GDP growth
and the growth in cement consumption. Hence, if the GDP growth slows down, so
does the demand for cement. Higher GDP has positive impact on the cement demand.
• Increase in the housing demand
According to the report from statistical bureau of Pakistan the housing projects
consume 40 % of the cement demand. Currently 0.3 million houses are built annually
against demand of 0.5 million.
• Dams
The construction of the four dams will generate demand of 3.7 million metric tones in
case the construction activities of these dams start. According to the reports the the
Kala Bagh dam (if settled) will generate the maximum demand since it is situated in
highly populous area.
• The Development Plans
The Government developmental plans for the infrastructure also help the demand of
cement to grow. The government developmental expenditures count for one third of
the total cement consumption. 60 percent higher Public Sector Development Projects
(PSDP) allocation by the government was on of the reasons of increase in the growth
rate cement consumption in the FY 07 and 08.
Export:
According to Ismat Sabir (A journalist as well as a researcher) the prospects for cement
exports seem bright in the medium term due to rising domestic as well as regional
cement demand.
• The cement export started in the FY 02 to Afghanistan, which is still a major
market.
• Pakistan has achieved improved access to India after the complete removal of
the 12.5 percent custom duty on Portland cement imports in this country from
January 2007, showing improved export opportunities for Pakistan.
• India is further planning to import more cement from Pakistan in order meet its
growing needs due to the boom in the construction industry.
• The exports for FY08 have already surpassed the last whole year’s export of
3.19 million tonnes and are likely to reach to 6.67 million tonnes in 2008.
• The targets for exports for 2009 and 2010 are set to be 9.99 million and 10
million tonnes respectively.
• Currently, the export demand is expected to be from India along with other
countries like Gulf Cooperation Council (GCC) countries, due to rising oil prices-
led economic growth.
• More countries like South Africa to make the football stadiums for the World Cup
and Sri Lanka are also expected to approach Pakistani companies for cement
imports.
• The operating capacity of cement in FY05 and FY06 was 18 million and 21million
tonnes, which rose to 37 million tonnes by the end of FY07.
• The cement manufacturers added eight million tonnes to the capacity and the
total production is expected to be 45 million tonnes by the end of 2010.
• It may result in a supply surplus of eleven million, nine million and seven million
tonnes in 2008, 2009 and 2010 respectively.
• Despite an excess supply of 11 million tonnes in 2008, it is estimated that the
price would increase in domestic as well in regional markets that may surely
boost the profitability and give relief to the industry on its new investment.
4.2. Maple Leaf Products:
It is an industrial product. It is classified as component material which is categorized

under manufactured materials and parts.
4.2.1 Product diversification:
Figure 4
Product Line Price in Rupees*

Properties
(Per bag)
It is also known as grey cement. It is one of
the main products of Maple leaf. It is used for
OPC
building houses, buildings etc…It is also 357
(Ordinary Portland Cement)
used for other purposes such as plaster and
many other construction purposes.
It is another main product. It is mostly used
White Cement during the finishing of the building such as 400
flooring.
Maple leaf has developed a niche market for
this specialized product. It is used in the
under ground basement construction of
Low Alkali 390
plazas, construction of bridges, flyovers etc
in order to prevent the structure from water
also called seam.
It has same properties as low alkali cement,
SRC but its chemical formula is a bit different. It

(Sulphate Resistance has more quantity of alkali which makes it 375
Cement) one step down than low alkali. It is also
mostly used for the same purposes as low
alkali.
It is used as the name suggest for the oil
Oil Well Cement wells. Maple leaf is the only producer of oil 335
well cement in Pakistan.
One of the main raw materials for the
production of cement, but it is also used as
Clinker** --
consumer product. It is used in the road
construction projects.
Although it is used as raw material for the
Hydrated lime** production of cement but also as a consumer --
product as well. It is also know as Choona
* The above prices assumed since the management wasn’t willing to disclose the actual price.
**The price of the product is set on the bases of the deal and bargain with the customer.
4.2.2. Brand name
The brand name of the cement products of maple leaf Cement is “Maple Leaf”. The
branding is done by combining the corporate name with the product name such as
“maple leaf – white Portland Cement”. According to Mr. Hassan, the manager of
marketing – export, the brand equity of maple leaf at present is US $ 500 million. Maple
leaf is sold as premium brand in the local and international market, he added. He said
that the people acknowledge its superior quality and are loyal to brand. It is also known
to many people by the name of “pattay wala cement”.
Maple Leaf
4.2.3. Market Share
Figure 5
M arket share (local)
Bestw ay, 14.26%
Flying, 0.33%
Lucky, 13.09%
Dandhot, 1.12%
Kohat, 2.00%
Dew an, 3.00% Maple Leaf ,

Fecto, 3.15% 12.55%
Cherat, 4.35%
Ask. Wah, 4.66%

D.G. Khan, 8.99%
Askari NZP, 5.07%

D.G.Chakw al,
Fauji, 5.18% 8.40%
Pioneer, 6.56% Pakistan, 7.28%
Market share ( export)
Pakistan, 5.63%
D.G. Chakw al, Pioneer, 5.27%

5.73%
Ask NZP, 5.14%
D.G. Khan, 7.42%
Al Abbas, 5.07%
Cherat, 3.90%
Maple leaf , 11.14% Fauji, 2.82%
Fecto, 2.14%
Ask Wah, 1.70%
Dew an, 1.63%

Best w ay, 11.17%
Attock, 1.35%
Kohat, 1.07%
Lucky, 28.81%
Figure 5 shows the market share of the north zone and exports. The manufacturing
plant of maple leaf is the third largest in Pakistan. It is one of the largest manufacturing
plants, capacity wise. Maple leaf cement’s market share in north zone is 12.55% and
11.14 % respectively.
4.2.4. Packaging and Labeling
• Packaging
Two types of cement bags are used for the packaging of the cement.
1. Paper Bags
This packaging is used for the local sale purposes. It is a standard 50 Kg

packing. The quality of the paper bag used is better than many of the competitors
which give maple leaf a competitive edge in the local market.
2. Poly propylene bags:
This packing is used only for the purpose of export. The reason behind using this
packing is that the life of the cement is increased. The packing of the bag may be
of 50 Kg, 40 Kg, or even 25 Kg depending on the order made.
• Labeling
The product is labeled with the maple leaf logo and the brand name. It also includes the
name of the product i.e. OPC, white Portland cement etc along with the gross weight of
the bag and quantity of cement. The labeling is same for the export packaging as well
however, the company is planning to label the cement exported in India in hindi, since it
is the demand of the customers in India.
4.2.5. Product stage of PLC
Figure 6
Maturity
Growth
MLFC Decline
Introduction
At present maple leaf cement factory is at the growth stage. This fact can be justified by
analyzing the sales of the company. Although the company is established since 1956,
but the recent construction boom in Pakistan and all over the world as well has caused
the sales of cement to increase. One of the major reasons for the increase of its sales is
the entrance of maple leaf in the international business. More over the expansion
projects started by the company is another indication, that the company has the
potential for further growth.
4.3. Product Positioning
Product positioning is actually a perception that a person or a consumer has about the
product or brand. According to Mr. Amir, in order to know about the customer’s
perception about maple leaf cement, the management flow questionnaires in the market
to get the feed back from the market. According to him the people acknowledge maple
leaf for best quality and good strength. More over maple leaf has the highest price
among its competitors.
4.4. Distribution:
4.4.1. Market coverage
Local market:
Maple leaf cement factory covers the local market by allocating the distributors their
specific area of sales. The target of the company is to cover the market all over
Pakistan, but its major focus is in covering the maximum of the north zone. The reason
behind is the location of the maple leaf manufacturing plant. The plant is situated at
Daud Khel in Mian Wali. The company has to bear lots of transportation cost for the
south zone, which it has to, at the end add in the price of the cement bag. This will end
up in losing the customer despite of the claim of good quality. More over, due to long
distance and time, the packaging of the cement is affected which in results in increased
number of waste product.
Export market:
Maple leaf exports its major products ordinary Portland cement and white Portland
cement. The major markets of maple leaf are Afghanistan, India, Middle East along with
other countries such as Nepal, Burma, and Srilanka. There are many other countries
that maple leaf is and has already explored such as Nigeria, Vietnam where there is an
increase in demand of cement.
4.4.2. Channel structure:
The following figure 7 shows the channel structures followed by maple leaf at present
for the local sales. There are basically two levels at which the goods are sold to the
customers.
Zero level is the level at which the company handle the customers directly. This case
arises when the customer wants to order large quantity for the project such as Plazas or
any other mega construction.
In 1- level channel structure, the distributors act as the intermediary in between the
company and the customer.
In case of export however, there is no intermediary. The company at the moment is

dealing the export customers as their direct customers i.e. at 0 - level.
Figure 7
0-level 1- level 0 – level (export)
Manufacturer Manufacturer Manufacturer
Industrial Distributor
Industrial Or Industrial Or Direct Industrial Or Direct

Direct customer customers customers
4.4.3. Supply Chain Management:
Maple leaf is situated at a strategic location which is rich with raw materials such as lime
stone clay, gypsum, and iron ore. The mines of these raw materials are owned by the
factory. These raw materials are transported to the manufacturing plant through trucks.
The raw material such as coal, and furnace oil are imported. Although Pakistan land is
rich in coal mines, but the quality of the coal produced is not good. It produces greater
amount of fumes and ashes and even catches fire if exposed to sunlight. Hence good
quality of coal is imported from countries such as Indonesia and china.
After the manufacturing process is completed the cement is then packed in two types of
packaging. One is for the purpose of local sales and the other for export.
Local supply:
The company covers the market by two marketing channels. The first priority of the
company is to dispatch the goods to the distributors. There are 17 distributors working
for maple leaf. Maple leaf has assigned certain quota for the daily dispatch depending
on total capacity of production of the plant where the distributor is situated as well.
Maple leaf deals with customers directly as well. The company entertains only those
customers directly who have started a mega project and require huge amount of
cement. The goods are dispatched from the factory via trucks to their respective
destinations
Export:
The factory currently deals with the importers as direct customers. The manufactured
product is sent to the ware houses situated in Lahore and Karachi. Here the orders are
then dispatched as per the deal i.e. via road, train or sea, any mode of transportation
that is best suited.
The supply chain management of maple leaf is shown in figure 8
Figure 8
Raw Material
Transportation
Manufactured
Dispatch from the

Factory
Transportation Transportation
Stored in the
Ware House
Distributors
Board on Ship
Customers
4.4. Pricing:
The pricing of per bag of cement is given by the cartel seated in APCMA. Almost all the
owners of the cement manufacturing plants are member of this association. Depending
on the government regulations, such as increase in taxes, excise duties, fuels and other
expenses, the association decides a price on consensus. A threshold is decided by the
cartel, below which no member of the association is allow to sell its product.
Maple leaf always keeps lead in the market regarding the pricing. It charges more than
the competitors.
4.5. Promotions
4.5.1. Communication Channels:
Maple leaf uses two communication channels to reach their customer.
1. Media
2. Public relations
3. Word of Mouth
1. Media
Maple leaf is using two types of media.
• Print media such as news paper
Maple leaf releases its news about the financial achievements in the
market through the news paper and this activity is done quite frequently.
• Internet
The company has its own website by the name of its mother company
KMLG. The name of the site is www.KMLG.com
2. Public relations:
This communication channel is widely being used for the purpose export. This is
mostly done by conducting seminars.
3. Word of mouth:
The company claims that there most effective and efficient means of communication
has been good word of mouth. The deputy manager, Adeel Sheikh said that they
always claim their cement to be of the best quality and their customers have always
acknowledged it.
4.5.3. Promotion tools:
The promotional tools that are used for local and export sales are as follows:
1. Discounts
2. Commission
3. Patronage awards
4. Seminars and conferences
5. Public – Service activities
Discounts to the distributors are given when he carries certain quantity of cement bags
from the factory.
Commission is given to the distributors @ Rupees 5 per bag.
Patronage awards are given away in the form of certificates. These are given to the
distributors depending on their performance. The company analyses the distributors by
observing their daily sales, on season and off season. The company officer then
categorizes them accordingly as A, B, C.
The distributors whose performance is 80 - 90 % and above lie in category A
The distributors whose performance is 70 – 80 % lie in category B
The distributors whose performance is 70 % and below, lie in category C
The company gives out certificates of the best distributors to the ones lying in category
A. It also gives preference to these distributors, when they require goods more than the
quota assigned to them.
The distributors lying in category B are reminded to improve their performance, every
now and then.
However, the distributors in category C are given written warnings from the company.
.Seminars and Conferences are frequently carried out by the company in the other
countries such as India, Middle East, Canada and many others, in order to present and
market their products to the prospective consumers.
Another major means of marketing promotion that is carried out by the company is
through the buying houses. The agents of the buying houses work as intermediaries
between the international customers and Maple Leaf. They even conduct seminars and
conferences on behalf of maple leaf. In return they get a lucrative commission by the
company.
Public – Service activities
The Kohinoor Maple Leaf Group is committed to fulfilling its social responsibilities and
has therefore invested in numerous projects to promote issues relating to health,
education and culture in Pakistan.
The Sayeed Saigol Cardiac Wing at Ghulab Devi; The Kohinoor Maple Group has
donated a state of the art Cardiac facility to the Ghulab Devi Chest Hospital in Lahore. It
is hospital that provides treatment almost free of cost to patients suffering from
tuberculosis and severe chest diseases. The facility is currently under construction and
will be operational at the end of 2006.
The Sayeed Saigol boarding house at the Chandbagh School; The Kohinoor Maple Leaf
Group feels strongly about promoting education in Pakistan. The group was actively
involved in the establishment of the Chandbagh School located in Muridkee and has
donated a boarding facility for students at the school premises.
The Lahore Art Gallery; The Lahore Art Gallery was commissioned by the Kohinoor
Maple Group in 1990.It is the first non-profit organization of its kind dedicated to
projecting and promoting artists from Pakistan at a domestic and international level. The
gallery is located at Kohinoor’s head office and will eventually be converted into a
museum housing some of the finest works of art from the region.
5. Productions and Operations
5.1. Flow of Activities in production:
The following raw material is required in the production process

1. Lime stone: This raw material is company owned and is extracted from the near by
mountains of Iskanderabad. Limestone has the highest composition in the cement
product. 75% to 80% of the cement constitutes of limestone
2. Clay: Clay is another natural resource. This raw material is also company owned.
15% to 20% of cement composition comprises of clay
3. Iron Ore: Iron Ore is the only resource that is bought from contractors. Iron Ore is
added in small quantities and it helps to strengthen the cement.
4. Gypsum: Gypsum acts as a retarding agent. It slows down the hardening process
which in turn gives the constructor enough time to use it.
5. Furnace oil: It is used mainly for power generation.
Step 1:
Raw Materials:
There are basically three main raw materials that are used for the production of cement.
In addition to that, a small proportion of other additives such as silica are also added.
1. Limestone 80%
2. Clay 20%
3. Iron ore
Lime stone and clay are extracted from the same place. Iron ore is bought from a
contractor near Kalabagh.
Step 2:
The raw materials are feeded in separate “crushers” that break them into smaller
pieces. After that they are stored in separate piles.
Storage area: It is a stacker that provides immediate storage. In case there is a problem
with the crusher, the stock present can be utilized immediately to provide enough
amounts to be used for three days.
Step 3:
From the stacker the components are mixed and made into an ultra fine powder in the
grinder. A weighing scale is maintained to check that the appropriate composition of the
materials is maintained and the right quantity is added. Again the mixture is stored in a
Consistent flow Silo. It is to be noted that until now only a physical change has taken
place. The next step would involve a chemical change.
Step 4:
The mixture is then added into a KILN. This is a rotating machine that heats the mixture
up to 1300*C where it is converted into a compound as a chemical reaction takes place.
This compound is the cement produced in molten form. As it moves onwards an air
cooler is present that cools the cement and converts it into small stones known as
CLINKER. This is the intermediate product that is formed. After that the clinker is
stacked in piles.
Step 5:
The clinker is then added into a grinder. At this stage another element known as
Gypsum is added. The composition of the cement is 95% and that of gypsum is 5 %.
The gypsum acts as a retarding agent. Cement on its own when kept in contact with
water hardens very fast. It ensures rapid setting but gives cement the time to harden in
the grinder the cement is crushed into a powder form.
This stage is very critical in the cement production process because of the fact that if
something goes wrong with the composition, the quality of the cement gets affected and
the whole costs that are incurred to produce the cement is wasted. Because of that the
quality check at this stage is the maximum and continuous.
Figure 9
Lime Stone Crushing and Preheating

Quarrying grinding
Cooling Rotary Kiln
Clinker storage Cement Grinding Cement

Dispatching
5.2. TECHNOLOGY IMPROVEMENT

The Maple Leaf Cement Factory is completely automated and the plant installation. The
engineers constantly work to improve the efficiency and effectiveness of the machinery.
The highlighted techniques included
1. Troubleshooting
2. Continuous improvement under the Kiazen approach
3. ISO specified changes in work procedures and capacity utilization
4. Change in Hierarchy to support production
5.3. Quality Assurance System
5.3.1 International Standards:

The company follows the ISO9002-9001 certification attached in appendix IV to ensure
maximum quality in the factory processes. They are following standards which are as
such:
• PS (Pakistani Standards)
• BS (British Standards)
• ASTM (American Society for Testing & Materials)

• ISO (International Organization for Standards)
The British Standards that are being followed by Maple Leaf Cement are BS - 8110 &
BS-5750.
5.3.2 Quality Control Approaches for improving product quality:

• PQ Teams: PQ teams exist at every level of the hierarchy
• TQM
• Zero Defect product
• Productivity Maintenance Department
• Quality assurance Department
• Preventative measure and maintenance team
The success of any organization and its ability to outshine competitors depend on the
right mix of quality and quantity. According the management the quality of cement at
Maple Leaf is much higher than the required Pakistani standards. The quality of the
cement is kept at par with international standards since Maple Leaf Cement Factory Ltd
is importing a large chunk of their production to foreign countries such as India and
China. Furthermore quality retention is very important because there is intense
competition in the local market.
5.3.4. Feedback and suggestions:

There is suggestion boxes placed all across the factory so that workers can drop their
suggestions. The box is opened separately by the ISO Department every month. The
suggestions that are adopted are referred to as winning suggestions and a reward is
given to the employee who has made the suggestion.
5.4. Warehousing and Storage:
After the production process of cement is complete, some part of the cement is stored in
the storage house. It is a stacker that provides immediate storage. In case there is a
problem with the crusher, the stock present can be utilized immediately to provide
enough amounts to be used for three days.
Maple leaf also has two warehouses in Lahore and Karachi. These warehouses are
used for the export purpose. The goods to be exported to other countries are stacked in
here.
6. Finance
6.1. Ratio Analysis
Current ratio:
Current Assets
Current ratio = -----------------------
Current Liabilities
Calculation
2007 2006
Current Ratios
1.1 : 1 1.005 : 1
The value of current ratio has risen slightly from the previous year. The industry median
calculated indicates that attaining the current ratio up to 1.16 is sufficient for the cement
industry to able to meet its obligations. The current ratio of maple leaf is 1.1, which is
almost close to the industrial median. This is a
Figure 10
good signal for the short term creditors that the 1.4
company has potential to pay back the 1.2
obligations in the near future. 1
0.8
The figure 10 shows the current ratio of the cement industry
0.6 maple leaf
company has been better than the over all
0.4
industry for the most of the time. It became low 0.2
in 2007 due to the increase in the current portion 0

2007 2006 2005 2004
of the long term loans and finances which the
company has taken for the installation of new plant.
Quick Ratio:
Current Assets - Inventory
Quick Ratio = --------------------------------------
Current Liabilities
Calculation
2007 2006
Quick Ratio
0.98 : 1 0.92 : 1
The calculations above show that the quick ratios have showed improvement with
respect to the previous year. But, comparing the calculations with the industrial median
of 1.08 we realize that the company’s potential to pay the obligations has decreased.
However, according to figure 11, which shows the four years comparison between the
cement industry and the maple Figure 11
Quick Ratio comparison of Cement
leaf, we can clearly see that
Industry and maple leaf
the value of the quick ratio of
1.4
maple leaf has always been
1.2
higher than the industry before 1
0.8
2007.
0.6
0.4
0.2
0
2007 2006 2005 2004
Cement Industry maple leaf
Activity Ratios:
Inventory Turn over:
Cost of goods sold 340118
Inventory turnover = ---------------------------- = ---------------- = 9.2 times
Inventory 369709
365
Average age of inventory (2007) = ------------- = 40 days.
9.2
Calculation
Average age of Inventory 2007 2006

(days) 40 21
The above results show that maple leaf converts its inventory into goods 9.2 times in
the year 2007. Maple leaf had a very bad result for the year 2007. The average age of
inventory in the year 2007 decreased by 100 %. The industrial median of the industry
was also 26 giving a view of bad inventory management of maple leaf. The present
situation i.e. 2007 seems to be unfavorable for the creditors to provide loans to the
company.
However, when we compare the four year inventory turnover rate of maple leaf with the
cement industry as Figure 12
shown in the figure
Comparison of average age of inventry of cement
12, we see that the industry and maple leaf
company has always
50
been managing its
40
inventory well. The
30
reason for its bad
20
management for the
10
year 2007 is the
0
major break down of 2007 2006 2005 2004
the cement grinding
Cement industry Maple leaf
mill. Due to this break
down, the cost of work in process increased and so as the cost of finished goods, hence
causing the cost of goods to rise in spite of fewer sales.
Average collection period:

Accounts receivables
Average collection period = ----------------------------------
Average sales per day
Calculation
2007 2006
Average collection period
20 18
The average collection period in 2007 has increased to 20 days from 18 days in 2006.
The industrial median of the cement industry in 2007 is 20.07 which make it favorable
condition for the company. But, in fact the company is not able to keep up with its own
policy of 15 days credit policy.
This shows that the company Figure 13
comparison of the average collection of the
had been managing its debtor
cement industry and maple leaf
more efficiently in the previous
30
year. Looking at the figure 13, 25
we see that the company is not 20

15
able to manage its debtors quite 10
well. 5
0
2007 2006 2005 2004
the cement industry Maple leaf
Total asset turnover:

Sales
Total asset turnover = ------------------
Total assets
Calculation
2007 2006
Total asset turnover
0.16 0.3
From the results above we see that in the year 2006, every rupee invested in the total
assets generated 30 paisa where as in the year 2007, it generated only for about 16
paisa showing a decrease of 47 %. The total turn over of the company is lower than the
industrial median as well. The industrial median also shows that the over all industry
earned 27 paisa over every 1 rupee of the total assets.
The four year industrial
analysis shows that Figure 14
maple leaf has been Comparison of total assets turnover for the
always performing well
as compared to the 0.6
cement industry. 0.5
0.4
The reason behind this
0.3
decrease was that in
0.2
spite of the fact that the 0.1
total assets of the 0
2007 2006 2005 2004
company increased by
22 %, but due the break cement industry maple leaf
down of the cement

grinding mill the sales lacked behind by 35 % than the sales in 2006.
Debt Ratios
Debt – to – total assets ratio
Total liabilities
Debt – to – total assets ratio = ----------------------------
Total assets
Calculation
Debt – to – total assets 2007 2006

ratio 62 60
The above ratio tells us that in the year 2006, 60 % of the firm’s assets are financed
with debt, where as in the year 2007, the percentage increased to 62 %. The industrial
median of the cement industry also shows the debt – to – assets ratio of 60.52. The
debt burden on the company has increased instead of decreasing.
However, this Figure 15
Comparison of debt - to - assets ratio of cement
doesn’t to need
industry and maple leaf
be so worry
70
some for the
60
company at the 50
moment. The 40
30
reason for this is 20
that, if we look at 10
0
comparison of
2007 2006 2005 2004
maple leaf with
cement industry maple leaf cement factory
the cement
industry in figure 15, we realize that the position of the company regarding debt
management has been better than the entire industry. The debt on the industry
increased due to the expansion projects that have been started by the company and
also other purposes such as the conversion of wet process plants to dry process plants
and other capital expenditure requirements.
Debt – to – equity ratio:

Total Liabilities
Debt – to – equity ratio = --------------------------
Share holder’s equity
Calculation
2007 2006
Debt – to – equity ratio
1.61 1.57
The ratio tells us that the creditor is providing Rs. 1.61 of financing for each Re. 1 being
provided by the share holder. This ratio has increased as well, as compared to the year
2006. In the ratio form, the results for the year 2007 can be stated as 55: 45 and that of
the year 2006 is 51: 49. The creditors always prefer this ratio to be low. the lower the
ratio, the higher the level of the firm’s financing that is being provided by the share
holders, and larger the creditor cushion in the event of shrinking assets values. The
industrial median for the year 2007, however is 1.79, showing that maple leaf is better
off as compared to the industry. Figure 16
If we see the figure
comparison of debt - to - equity ratio of cement
16, we see that the
company’s ratio in the
past years have been 2.5
2
in the favor of the
1.5
creditors, but the
1
requirement of loans
0.5
for the expansion
0
projects started by
2007 2006 2005 2004
the company, along
cement industry maple leaf
with conversion of
wet dry processes into dry process plants have caused the ratio to increase.
Interest coverage ratio:

EBIT
Interest Coverage Ratio = --------------------------
Interest
Calculation
2007 2006
Interest Coverage Ratio
0.6 6
The ratio of the year 2007 show that earnings of the company before interest and taxes
is 0.6 times greater than its interest payments. In the year 2006, the position of the
company was considerably better. The company’s ratio has fallen below the industrial
median. The reason for this down fall is the low operating income earned by the
company.
Figure 17
If we see the industrial
Comparison of interest coverage ratio of the
analysis of the company
with other companies,
we see that, the position 25
20
of the company
15
regarding this ratio has
10
been low. However in the
5
year 2007, the industrial
0
ratio has also fallen
2007 2006 2005 2004
down. The major credit
for this fall down can be
given to the increase in the interest rates by SBP, to stricken the monetary policy. But
the condition of maple leaf was still worse.
Profitability Ratios:
Gross Profit Margin:
Gross profit
Gross Profit Margin = --------------------
Sales
Calculation
2007 2006
Gross Profit Margin
8.35 19.50
The ratios show that in the year 2006 the company’s gross profit was almost 20 paisa
on ever Re. 1. But in the year 2007, the gross profit fell by 57 %, to only 0.08 paisa per
1 rupee of sale. The company has shown very poor performance in this year. The
industrial median is also 19.35, which puts maple leaf in an alarming situation as well.
The reason behind this decrease was the sales of the companies decreased by 35 %
with respect to 2006, but
Figure 18
the cost of goods
Comparison of profit margin of the cement
decreased only by 4
industry with the maple leaf
%.the reason for this was
50
the 40 days of major
40
break down of the
30
cement grinding mill due
20
to which the average age
10
of inventory by about 100
0
%. Another reason for
2007 2006 2005 2004
the cost increase was
the increased production
from the wet process kiln due to stoppage of dry kiln for the routine maintenance.
If we see the figure 18, the four years comparison shows that the maple leaf has been
earning gross profit below average. We can also see that in 2007 the industry’s gross
profit margin has also fallen down. The reason behind this drastic reduction is the
increasing pressure on the cement prices with a perception of over supply due to new
capacities coming on line.
Net Profit Margin:

Net Profit
Net Profit Margin = -------------------------
Net Sales
Calculation
2007 2006
Net Profit Margin
1.13 18.55
In 2007, the company generated 0.013 paisa from every rupee of sale. However, in
2006 the situation was quite good since the company earned 93 % more than in 2007.
The industrial median was also higher than that of the companies. The reason behind
the reduction was the
reduction in sales along Figure 19
with the relative increase comparison of net profit margin of the cement
in the cost of goods sold.
The sales of the 30
company reduced due to 25
20
the production from wet
15
process kiln due to
10
stoppage of dry process 5
kiln for routine 0
2007 2006 2005 2004
maintenance, which is
expensive than dry cement industry maple leaf
process and also

because of the break down of the cement grinding mill for a period of more than a
month which restricted the sales volume. This fault even disabled the company to get
full benefit of the improved cement prices in March and April 2007.
The figure 19 shows the comparison of the net margin generated by maple leaf and the
over all industry. The earnings have always been low of maple leaf, which is not a
healthy sign for the company. Even the net profit earned by the over all industry has
fallen in the year 2007. The reason for this is the sharp increase in the mark up rates
which raised the financial costs.
Operating Expense:
Operating Expense
Operating Expense ratio = -----------------------------
Sales
Calculation
2007 2006
Operating expense ratio
4.1 3.5
The operating expense ratio Figure 20

of the company has
comparison of the operating expenses of cement
increased by 17 % in 2007. industry and maple leaf
This increase was due to the
10
increase in the distribution
8
costs of the company. How
6
ever this ratio remained
4
below the industrial median.
2
The industrial median was 8
0
%. This shows that the 2007 2006 2005 2004
management is able to
control the expenses
efficiently. The four years comparison of maple leaf with the industry in fig also shows
that the company has controlled its expenses quite well.
E.P.S:
Net Income – preference shares
EPS = ---------------------------------------------------------
No. of shares of common stock out standing
Calculation
2007 2006
E.P.S.
(0.03) 3.16
The earning per share of the company has gone to the negative digits, i.e. – 0.03 in the
year 2007. The earning per share in the year 2006 was 3.16. This showed that on each
share of common stock outstanding, the investor earned Rs.3.16 but this earning has
fallen by 99 %, showing negative earning.
The industrial median is also 3.14, for the year 2007. The reason behind the low earning
is the lowering of net income Figure 21
by 96 % due to the break comparison of EPS of the cement industry and
maple leaf
down of the grinding mill for
40 days and increase in the 7
6
financing costs and slight
5
increase in the number of
4
shares by 1 % as well. 3
The four years comparison 2
of maple leaf with the 1
0
industry shows that the
2007 2006 2005 2004
-1
company’s earning per
share has always been
lower than the industry’s average earning per share. This is a demotivating factor for the
investors and they will prefer to invest in some other cement industry instead of Maple
leaf which is unfavorable for the company.
Return on total assets:

Net Income
Return on total assets = ------------------------
Total Assets
Calculation
2007 2006
Return on total assets
0.18 5.64
This means that, in the year 2006 the company earned 5.64 paisa over every rupee
invested in the assets and in the year 2007 the company earned 0.18 paisa over every
rupee invested in the assets. The present position of the company to earn against its
assets is very bad
The ratio is also below than the industry median. The industrial median for the year
2007 is 2.9 %.
If we compare the four years Figure 21
industrial median with the
Comparison of return on assets of the cement
company in the figure 21, industry and maple leaf
we see that the company

has not been performing 35
30
well for the last three years 25
in a row. 20
15
So, along with blaming the
10
increase in the cost of 5
0
goods due to trial run 2007 2006 2005 2004
operation, the increase in cement industry maple leaf
coal and oil prices,

increased production from wet process kiln due to stoppage of dry process kiln for
routine maintenance, and a 40-day unfortunate breakdown of the cement grinding mill,
and high finance cost, the management of the maple leaf should be blamed as well for
the un efficient performance through out the years
Return on equity
Net income
Return on equity = -----------------------------
Stock holder’s equity
Calculation
2007 2006
Return on equity
0.47 14.51
The return on equity for the year 2006 shows that the investors earned 14.5% on their
investments where as for the year 2007 the investors earned only 0.47%. The industrial
median for the year 2007 was 2.35 which made the company look more miserable.
The reason behind the low
Figure 22
returns was the unfortunate
break down of the cement comparison of return on equity for cement
grinding mill for 40 days,
which caused the decrease 45
40
in sales and the increase in 35
the cost. The cost of goods 30
25
sold also increased due to 20
trial run operation, and there 15
10
is an increase in coal and oil 5
0
prices, increased production
2007 2006 2005 2004
from wet process kiln due to
stoppage of dry process kiln
for routine maintenance, which is expensive than dry process, and high finance cost.
When we look at the over all industry and maple leaf in fig, we see that the maple leafs
performance has been very low as compared to the industry. The management is not
able to generate enough revenues against the investments made by the share holders.
6.1. Common Size Analysis:

Common Size Analysis of Balance Sheet:
The calculations of the common size analysis of balance sheet have been annexed in
appendix - II.
Assets
The total assets of the company are 100% which includes 17.3% current assets and
82.7% non current assets for 2007. The major contributor to no-current assets is
property plant and equipment. These are 82.5% of total assets. This includes 39%
operating fixed assets 59%. Capital work in progress and 2% stores and spares held for
capital expenditure. Major contributor to operating fixed assets is plant and machinery, it
is 75% of total operating fixed assets, and other major contributor is building. And the
major contributors to capital work-in-progress are plant and machinery, mechanical
works, electrical works and the un-allocated capital expenditure.
And for the 17.3% current assets, major contributors are stores, spares and loose tools
with 8.6% and investments with 4%.
Equities and Liabilities

The Company is using 38.4% equity and 61% debtors’ money to run its operations and
finance its assets. The firm’s degree of indebtedness is high.
For the 38.4% equity portion, the company has 18.2% issued subscribed and paid-up
capital and 19% reserves.
For the 61% liabilities Portion Company has 16% current liabilities and 45.6% non-
current liabilities. For the 45.6% non-current liabilities major contributors are term loans
and finances worth 36.6%. These loans have been taken from different banks,
consortium and syndicate of commercial banks. And for the 16.02% current liabilities
major contributor is cement parties of long term loans and finance with 7.6%.
Common Size Analysis of Income Statement:

The calculation of common size analysis of income statement is annexed (appendix –
II). In common size analysis sales are bench marked as 100%. Cost of goods sold is
91.6% of the sales, leaving a very low gross profit of 8.4% for 2007. And it was 37.6 in
2006. This sharp decline in 2007 is because of high costs of goods sold due to trial run
operations of the new installed plant from 01 March, 2007 to 30th June 2007.
The operating expenses are 4.2% of total sales, leaving the operating profit to only
4.2% adding 1.2 operating income. Maple Leaf has an operating profit of only 5.3% to
total sales.
The total finance cost of the company is 9.1% of sales because of high mark-up rates
on long term and short-term loans and finances, bank guarantees commission and
exchange fluctuation loss. After the deduction of finance cost, the company suffered
pre-tax loss of 3.8% of total sales. After the tax calculation, the company earned net
profit of only 3.8 % of the total sales.
6.2. Index Analysis:

Index Analysis of Balance sheet:
The calculations of index analysis is shown in appendix (III)
Equities and Liabilities

For equity issued, subscribed and paid-up capital increased by 21% reserves by 45%
and a decrease in inappropriate profit by 62%. For the liability portion, current liabilities
increased by 41% and non-current liabilities by 19%.
For current liabilities major contributor is of current portion of long term loans and
finances which increased by 232% because of increase in interest rates. Then the other
major contributor is current portion of liabilities against assets subject to finance lease it
is increased by 209%.
Non-current liabilities increased by 19% with major increase in liabilities against assets
subjected to finance lease agreement with first National Bank to acquire two units of
imparted Volvo wheel loaders.
Assets
The total assets of the maple leaf have increased by 22% since the previous year.
There is an increase of 17% in non-current assets. The property plant and equipment
has increased by 70% because company acquired a new building, plant and machinery.
Also the capital work in progress increased because of plant and machinery, electrical
and mechanical works, unallocated capital expenditure done for the expansion project
of 6700 tpd clinker capacity. No investments were made in 2007 showing a 100 %
decrease. Then the deposits and prepayments increased by 71%.
There is an increase of 52% current assets, where major indicators are stock in trade,
loans and advances, deposits and short term prepayments, receivables cash and bank
balances. Stock in trade increased by 83% from last year because of low turnover of
work-in-progress and finished goods.
There is a decrease of 72% in loans and advances because of earnest money
deposited with the privatization commission, Govt. of Pakistan for participating in the
bidding of 100% shareholding of Pak American Fertilizer ltd. As the Company’s bid
could not succeed this balance was fully received back during the current year. Then
there is an increase of 10% in the deposits and short term payments which also
includes margin against letters of credit. Finally cash and bank balances also increased
by 22% from last year.
Index Analysis of Income Statement

The year 2006 is kept as base year and all financial statement items are 100% for this
year. Now, comparing the sales in 2007 to its sales in 2006, the index is 64.9, showing
a 35% decrease in sales and this is prominently due to reduction in cement retention
prices, and a 40-day unfortunate breakdown of a cement grinding mill. Now the
reduction in cost of sales is only 5%, showing company is producing on a very high cost
and this is prominently due to increase in coal and oil prices and the 2354% increase in
work-in-progress transferred to normal operations during trial run operations for further
processing. Because of high cost of sales and low revenues, the company’s gross profit
for 2007 is 85% less than the 2006.
After the deduction of operating expenses the company is left with operating profit of
155,210,000, which is 92% less than the previous year.
There is an increase of 62% in operating income, where major increase is due to sale of
scrap. Gain on disposal of operating fixed assets and dividends. Finance cost remains
almost the same as in 2006. Profit before taxation is 91% less than 2006. And profit
after taxation is 96% less than 2006. The year 2007 is eventful year for the cement
sector of Pakistan but Maple Leaf suffered a drastic decrease in profits in its 6 year
history.
7. Human Resource
Maple Leaf is a private organization and therefore the employee pays aren’t regulated
by any government stipulations. There aren’t specified strategies or labor laws that
protect the labor wages at the factory. However Maple Leaf considers employee
satisfaction as a major contributor to their success in the market and therefore has
undertaken extensive planning to ensure the employed labor force is happy with there
salary packages. The general employee salary and benefit package includes
• Basic Salary
• Remote area allowance
• Bonuses
• House allowance
• Free medical benefits
• Subsidized utility bills
• Education allowance for employee children who are over 15, currently it is
rupees 100/month however it is subjected to revision shortly.
Although the basic salary figure for factory workers has remained un-disclosed but the
management confirmed that is was slightly above the industrial average which in turn
also helped to reduce the turnover since most workers were aware of the fact that their
salaries alone were better than those offered by industrial competitors.
7.1. Recruitment strategies and methods

There are two sources to recruit employees.
1. Internal search
2. external search
The source of recruitment depends on the nature of the job, whether it is for the upper
management or for the lower staff.
1. Internal Search
The very first preferred source of recruitment by the company is the internal search. The
policy of the company is to promote – from – within – when ever – possible. When ever
there is any vacancy in the company, the upper management posts the notice for the
“position open” on the bulletin board in the factory or the office.
The internal search depends on the nature of the job, i.e. what sort of qualification and
skills are required for the job available.
Incase, no candidate from with in the company is eligible for the job according to the job
specifications, or the company’s management wishes to look for diversified and variety
of talented candidates, then the company moves towards the external search.
2. External Search
The company does recruitment for the out side candidate through advertisements in the
news papers. This is the most frequently used channel by the company. How ever the
company has begun to advertise on the internet as well on their site “www.kmlg.com”. A
sample of the job advertisement by the company is shown in Appendix V
7.2. The Selection Process
The over all selection process takes about one and a half month. Following are the
steps that are followed by maple leaf.
7.2.1. The Initial Screening Process:

The very first and basic requirement of Maple leaf is that the candidate should have
degree recognized by the H.E.C. The GPA or the percentage required is defined by the
company as per the requirement and the level of job. Many of the job respondents are
eliminated based on the job description and job specification.
7.2.2. Completing the application form:

The next after the initial screening is the filling of the organization’s application form.
This application form requires the information that can help the company satisfy that the
applicant is according to their requirement. The candidates who do not match the
requirements of the company are eliminated in this round.
7.2.3 Written test:

Maple leaf Cement factory did not conducted written test until 2008. The company has
recently made the policy to conduct written test comprising of technical skills as per the
job description, English and mathematical skills.
The technical, analytical and mathematical skills required for the entry-level posts are
judged using written tests that requires a lot of calculations to be done within the limited
time. This test helps screen individuals for their analytical capabilities that are the main
requirement for employees who have to do a lot of paper work, calculations and book
keeping without making mistakes. As they have to prepare documents that serve as a
basic source of information for manager to make decisions.
According to Mr. Obaid, the written tests also include multiple choice questions and
sometimes essay questions. Especially for posts, that requires individuals to make
inferences and deduct logic and reasons out of numerical data such as cost
accountants providing reasons for cost variances and standards. Along with that
candidates are provided with different scenarios, for which they have to reply in best
appropriate way and then they are judged on their responses.
7.2.4. Comprehensive Interview:

After the passing of the candidates in the written test, the comprehensive interview,
which is also the final interview, is taken for the candidate. Mostly a panel of four
interviewers is seated for the hiring of the candidate.
The employees sitting in the panel depends on the nature of the job. If the selection is
for the upper management job, the C.E.O., C.F.O and C.O.O along with the General
manger of H.R. sit in the panel.
However, the lower level jobs such as for the management trainee officers, the interview
is conducted by H.R. manager, the C.F.O, the A.M. of the human resource and the
supervisor under whom the candidate has to work in the future.
The best candidate is then hired by the authorities after which, he enters the training
and development phase.
7.2.5. Orientation:
Once the candidates are selected for new job, they are introduced to following things.
• Culture and values of the Maple Leaf Cement Factory.
• New employees are given detailed information about the task they have to
perform in their respective department.
• New employees are introduced to current employees working in the department,
so that they can socialize properly and can work easily in the new environment.
7.3. Employee Training and Development
Management training takes place regularly at the head cities from where the technical
operations are controlled. The head cities include Lahore and Islamabad. Training is
also conducted abroad mostly in Denmark since most of the industries machinery has
been imported from Denmark. Technical collaboration for skill development programs
are also being conducted in Germany, Sweden, Turkey and Egypt
7.4. Performance evaluation
Maple leaf has introduced the H.R. Department just recently. So, there are many
activities and policies that are still to be introduced by the department. However the
appraisal criteria that is being used by the company is only the feed back from the
supervisor about the subordinate. According to Mr. Obaid, they will be introducing the
appraisal criteria for their employees in the near future.
7.5. EMPLOYEE BENEFITS AND COMPENSATIONS
7.5.1. Bonuses:
Bonuses to the factory workers are given on the basis of their performance on ground
i.e. the factory floor operations. According to specified standards the plant should be run
for 330 days at maximum. If the employee/labor force is able to do that they get a bonus
which is equal to their two salaries. The bonus is a group incentive since it is not paid to
individuals but rather to all employees if collectively they are successful in running the
factory for 330 days a year.
7.5.2. Employee Promotion:

Another major incentive for working at Maple Leaf Cement Factory Ltd includes the fact
that promotions are very speedy in the organization, they are based on employee
competency which means it is performance based rather than the number of years the
employee has worked in the organization. This serves as a major incentive for the
young employees who enter into the organization since they work hard to get to better
positions in the firm quickly to get better salaries, benefits and authority.
The employees in the factory are recruited on the bases of their competency and ability
to perform the specified job tasks. Preference is given to hiring internal workers for
better positions since this serves to motivate employees at Maple Leaf however incase
the recruiters do not find a suitable candidate they select employees from the external
potential employee pool. There is a vast pool of potential employees therefore there is
never a shortage of employees; one can also find a replacement at Maple. This is
because either lower level worker is promoted upwards provided they are capable
otherwise there is a vast pool to choose from externally.
8. Learning as a student Internee
8.1 New Knowledge Acquired
8.1.1. Export department:

The very first department in maple leaf that I was introduced was the export - finance
department. There are two employees in this department.
1. Mr. Ijaz Ahmad ( Assistant manager )
2. Mr. Omer ( M.T.O )
I spent three weeks in this department. It was a very good experience working in this
department. I learned a lot of new things about the export process during the stay.
Introduction:
Maple leaf cement factory began exporting the O.P.C. (Ordinary Portland Cement) in
2006. Maple leaf cement factory along with lucky cement factory, have only been the
ones in Pakistan cement industry to acquire the BIS certificate from India for the export
of cement. Maple leaf has market share of 11.4 % in exports markets. Its major markets
are India, Middle East, and Afghanistan along with other countries such as Nepal,
Srilanka, and Nigeria.
EXPORT FINANCING:
The major issue that one has to face in international trade is the lack of trust that exists
when one must put faith in a stranger. Firms engaged in international trade have to trust
someone they may have never seen, who lives in a different country, who speaks a
different language, who abides by (or does not abide by) a different legal system, and
who could be very difficult to track down if he or she defaults on an obligation.
The modes of transactions that are agreed upon on the bases of trust and confidence
are
• C.A.D.
• Advance payment
• Letter of Credit
C.A.D:
It is an abbreviation for cash against documents. Cash against documents (CAD) is a
payment term for exported goods in which the shipping documents are sent to a bank,
agent, etc., in the country to which the goods are being shipped, and the buyer then
obtains the documents by paying the invoice amount in cash to the bank, agent, etc.
Having the shipping documents enables the buyer to take possession of the goods
when they arrive at their port of destination; this is known as documents against
presentation.
According to the Mr. Ijaz Ahmad, this mode of payment is not practiced by maple leaf
cement factory, since it carries risk on behalf of the company.
Advance Payment:
As the name suggests, advance payment is the mode of payment in which the customer
makes the payment in advance to the company as per the invoice amount. The
company makes the shipment according to the agreement and sends the shipping
documents to the buyer so that he can claim the possession of the goods when they
arrive at the port.
This practice of payment is very profitable to the company, since the company receives
the cash as soon as possible with out any delay.
Letter of Credit:
“Letter of Credit is an obligation undertaken by the issuing bank on behalf of the
importer to pay certain sum of money to the order of exporter against the specified and
complied documents.”
(Ijaz Ahmad, Assistant manager – Export, MLCF)
The Letter of Credit process:

Usually there are four participants in the L/C process.
• Buyer
• Issuing bank
• Advising bank
• Seller (beneficiary)
The steps required for processing the letter of credit are:

1. Buyer and seller agree to the terms including means of transport, period of credit
offered (if any), and latest date of shipment acceptable
2. Buyer applies to bank for the issue of letter of credit. Bank will evaluate he
buyer’s credit standing, and may require cash cover and/ or reduction of other
lending limits.
3. Issuing bank issues L/C, sending it to the advising bank by air mail or electronic
means such as telex or SWIFT.
4. Advising bank establishes authenticity of the letter of credit using signature books
or test codes, then informs the seller.
5. Seller should now check that L/C matches the commercial agreements and that
all its terms and conditions can be satisfied.
6. Seller ships the goods, then assembles the documents called for in the L/C
(invoice, transport documents, etc.)
7. The advising banks checks the documents against the L/C. if the documents are
compliant, the bank pays the seller and forwards the documents to the issuing
bank.
8. The issuing bank now checks the documents itself. If they are in order,
reimburses the seller’s bank immediately.
9. The issuing bank debits the buyer and releases the documents (including
transport document), so the buyer can claim the goods from the carrier.
Export Process:
The flow chart of the general export procedure is shown in figure i and the procedure of
how the company carries out its operations is shown in appendix IV
Figure i
Export Query
Performa Invoice
LC / Advance
Payment Received
Order Booking
Dispatch from factory
Truck freight
Payment
Shipment
Customs, Forwarder,
Inspections Air / Sea
Freight Payments
Document submission in bank
LC Payment realization EPRC Receipt from

Bank
Commission Rebate Case Filing

Payment t Agent
Export Query:
The very first step begins with the export query. The company’s marketing department
manager Mr. Abid or the customer himself gets in correspondence with one another.
The marketer and the customer agree on the certain terms and conditions. These terms
and conditions are mostly agreed upon, on the telephone. The customers then send
their order as per requirement to the company via fax or any other means that is quick
and convenient.
The company and the
After this the export marketing manager issues a Performa invoice as per the
agreement between both the parties. This invoice entails the following details:
• The description of the goods that has been demanded by the customer.
• The quantity he requires
• The unit price at which both the parties have come to an agreement.
• The mode of shipment by which the goods will reach to the customer.
• The mode of payment as per the agreement, whether it is through is through L/C,
advance payment, or through C.A.D.
• The address of the banks through which the transaction of the money will take
place and the address of the location where the goods are to be delivered.
The Performa invoice is the given forward to the sales export department who keeps the
record of this invoice.
According to the agreement between the company and the customer, the customer
sends the advance payment or issues the L/C from his respective bank to the bank of
the company. The receiving / advising bank makes intimation with the company as soon
as it receives the advance payment or the L/C in the form of bank advice. This advice is
then put forward to the accounts department who makes a voucher against the advice
and enters it in their data base. The voucher that has been punched by the head office
is then sent to the factory, where the data is entered once again.
Order Booking:
When the export marketing department receives the copy of L/C or the intimation of the
bank advice they request Mr. Shahbaz, the junior executive, in the sales marketing
issues a customer order form against the performa invoice.
Dispatch:
After the issuance of the customer order form, the data is delivered to the factory via the
system software and after the confirmation the factory dispatches the required order to
its destination.
Truck and Freight payment:

The truck and freight payment is either charged by the company according to the terms
and conditions.
The terms can be as follows:
• Ex works
• FOB
• CIF
• CNF
Ex works
It is also called as ex- factory, and ex mills. This term means that the customer will bear
all the truck and freight charges. No charge will be on the company’s behalf as soon as
the order leaves the factory.
FOB
It is also called free on board. The term FOB is commonly used when shipping goods,
to indicate who pays loading and transportation costs, and/or the point at which the
responsibility of the goods transfers from shipper (seller) to the buyer.
CIF
It is abbreviation for cost, insurance and freight. It means that the seller must pay the
cost and freight necessary to bring the goods to the named port of destination and any
other additional charges that are put during the delivery. According to this term the
seller has to procure the marine insurance as well.
CNF
CNF also symbolized as C&F, is abbreviation for cost and freight. According to this term
the seller is responsible for the shipment of the goods and the ocean freight us charged
from the sellers account.
Shipment:
Primary documentation:
A request of E form is then generated by the marketing department to the export
department. It contains the detail of the quantity of goods, the price as per decided,
terms of sale, port of destination, mode of transportation, port of shipment, and load
custom port. The sample of request form that is issued by the company is shown in
appendix.
Along with the issuance of E form, there are certain other primary documents that are
required during the custom clearance.
The primary documents required are as follows:
1. Primary Invoice
2. E-Form
3. Packing List
4. Sales Tax Invoice
5. Undertaking by the Shipper
1. Primary Invoice:
Primary invoice shows the shipping marks, description of goods, total quantity,
unit price and total value, gross and net weight plus certain other details like the
L/C number, type and tenor is prepared wholly from Customs Clearance point of
view and it may not be as per L/C.
It also contains a declaration on behalf of the exporter and claim to rebate based
on the items being exported and rate of rebate that can be claimed.
2. E-Form
E-form is the export form that is issued by the bank to the company.
E-form is filled manually or by type writer whish is then signed by an authorized
person / manger.
The filled ‘E’ form is then taken to the concerned branch of the bank to get it
verified / attested and to obtain a C&F certificate and NOC if required.
A set of ‘E’ form is completed with 1st (Original), 2nd (Duplicate), 3rd (Triplicate),
4th (Quadruplicate), Bank certificate and NOC if required.
Original and Duplicate E-Forms will be submitted in primary documents.
o The original is sent for the custom clearance.
o The duplicate is kept as a record by the company.
The triplicate and quadruplicate are given to the bank.
o The triplicate is sent to the state bank of Pakistan
o The quadruplicate is kept by the bank as a record.
3. Packing List
The packing list details are sent by the mills. This document shows the way the
product is packed and other details like ;
o Number of pieces in one carton/bag
o Number of cartons/bags
o Weight of one piece both net and gross weights
o The production complete specifications
o Shipping marks printed on cartons and so on.
This packing list is prepared for customs clearance purpose and it may be not exactly as
per L/C. A sample of packing list is shown in appendix.
4. Sales Tax Invoice

Sales Tax Invoice is prepared by Sales/tax or accounts department and is also an
integral part of the primary documents.
5. Undertaking by the Shipper

An undertaking is given by the shipper on its LETTER HEAD that there is no item
included in consignment such like NARCOTICS etc.
The E form is filled by the designated person and then it is verified and stamped by the
authorized person or the manager. It is then verified by the advising bank and then
submitted to the customs by the agent along with the other primary documents that are
mentioned above.
Custom clearance:
All the primary documents are submitted to the concerned clearing/forwarding agent
who prepares one more document after collecting information from primary documents.
Such document is called SHIPPING BILLS.
• The agent clears the consignment and now it is loaded on a carrier which may be
by road/water/air.
• If it is by vessel, after departure, we are issued carrier receipt which is called
BILL OF LADING (B/L).
Document submission in the bank:

Once customs clearance is completed and the vessel is sailed, the clearing agent
returns the company the following documents;
• Bills of Lading
• Shipping Bills
• E-Form DUPLICATE
• Customs attested primary invoice
• Customs attested primary packing list
Now the company is ready to prepare commercial documents that are to be submitted
to the bank for the L.C. payment realization.
The commercial documents consist of the documents as per the bank and the L/C
requirements.
Commercial Invoice:
Invoice is issued by beneficiary, unless otherwise stipulated in the L/C. Description of
goods on invoice is identical to that called for in the L/C. Unit price and total value
matches with that quoted in L/C. Calculations must be correct. Cuttings / alterations are
properly authenticated. Correct reference of LC number appears on invoices. Invoice is
signed as desired in the LC. Information given on invoice corresponds to that on all
other documents. All certificates on invoice are worded in terms of the LC. Invoice
meets all other terms & conditions as mentioned in the LC a sample of commercial
invoice is attached in appendix.
PACKING LIST (COMMERCIAL)

Packing list relates to correct LC number. Correct number of copies of the packing list
as called for in the LC is submitted. It is issued by beneficiary of LC. Total contents of
each packing equal’s total quantity of goods as mentioned on invoice. All information, as
required in the credit to appear on packing list. Cuttings / alterations are properly
authenticated. All information corresponds that on all other documents. A sample of the
packing list is attached in appendix.
Any other documents/certificates required for in the L/C

Documentary Credit may call for any other document or certificate to which seller and
buyer may have agreed in their contract of sales, or the opening bank may also include
certain documents or certificates in the documents under LC. If such documents /
certificates are called for, these should be examined to verify that,
Submitted documents / certificates refer to correct credit number.
o Carry all the required information as called for in the credit.
o Carry information corresponding all other documents.
o Cuttings / alterations are properly authenticated.
BILLS OF LADING
o It comprises of full set of originals, and copies as required in the credit.
o Shipper is beneficiary, unless otherwise stipulated in the LC.
o It is consigned to or endorsed to the order of opening bank.

o Name & address of notify parties are as per LC.
o Port of loading or place of taking goods in charge is same as required in the LC.
o Port of discharge or place of final destination is same as required in the LC.
o Merchandise description corresponds with that on the invoice and other
documents, and is in terms of the LC.
o Shipping marks and numbers correspond with that on invoice, packing list,
insurance and other documents.
o Name of carrying vessel appearing on BL should be same as mentioned on other
documents.
o Should bear date of issuance.
o Should indicate date of loading on board after date of issuance of BL and such
date should be within latest date of shipment stipulated in the LC.
o “On Board” notation, if printed, should bear vessel name and date of loading on
board, under signatures of carrying vessel or its named agent.
o There should be no superimposed clauses on face of BL, which expressly declare
a defective condition of the goods or packing, such as, contents leaking, bags
broken or similar.
o Total number of boxes, crates, bags etc or tonnage or quantity indicated on bill of
lading agrees with the same information appearing on invoice and other
accompanying documents.
o Cuttings / alterations on bill of lading should be properly authenticated.
A sample of bill of lading is shown in appendix.
Once the commercial documents are complete, they are submitted to the concerned
BANK who onwards endorses the same and sends the documents to consignee/
applicant /importer’s bank. E-form 2nd and 3rd copies are submitted along with other
commercial documents. 3rd copy is onwards sent to State Bank of Pakistan, thus 4th
copy (quadruplicate is hold by shipper for records).A covering letter by shipper is put
above the commercial documents and submitted to the Bank.
L/C Payment Realization

The Bank issues a letter with FDBC (Foreign Documentary Bills of Collection) number,
containing the details of dispatched documents to the Consignee’s Bank. The Bank
confirms payment on its receipt and issues the payment transfer advice against the
FDBC number which last but not the least document.
After the realization of the L/C from the bank and receiving the EPRC from the bank, the
marketing department prepares the rebate documents to claim the rebate on the export
and the payment of the agent’s commission as well. The rebate cheque is received is
then punched in by the accounts department and fed in the computer software. The
copy of the voucher is further send to the factory as well for the entry of data.
8.1.2. Treasury Department:
This department is under the direct control of Mr. Abdul Rauf. Mr. Kahlid and Ms. Hina
Noreen are working under his supervision. The major work in this department is to
manage the long term and the short term loans.
I learned a lot of terms and conditions and basic requirements regarding these loans.
Short term loans:

Short term loans are obtained against the current assets of the company.
When the company requires a short term loan it sends a request for the loan to the bank
along with the BBF (basic borrower sheet) along with other basic bank requirements.
The banks or other financiers put down their facilities in a term sheet against which they
can provide the loan to the company.
Some of the most frequently used facilities are as follows:
• Money Market Deal
• RF
• FE 25
• FAPC
• ERF
Money Market deal:

According to this facility, the company has to pay the mark up to the lending bank right
from the date the deal has been confirmed between the parties.
RF
It is known as the running finance facility. This facility is provided to the company for a
specific period of time over a certain amount. According to this facility, the company will
be charged only when the company draws the money from this facility. This charge will
be only against the amount with drawn.
FE 25
It is the facility provided on foreign exchange. The loan is given to only those companies
who are involved in international business. The mark up rate is charged according to the
LIBOR rate plus the spread i.e. the interest charged by the bank. The loan borrowed
from the bank is returned in the foreign currency.
FAPC
It is the finance against the packing credit. It is another export based loan. The company
can receive this loan against the export of its products. The loan payment is done when
the company receives its payments.
ERF
It is also called as export running finance. It is provided to the company directly from the
State Bank of Pakistan. It is an export based loan. The interest rate that is charged
against this loan is the KIBOR rate.
The other requirement that the bank requires is the promissory notes, and the securities
such as personal guarantee of the owners and the letter of hypothecation which show
the assets that are used to secure the loan for the company.
Long term Loans:

The long term loans are obtained against the fixed assets of the company. These
assets must be insured by the insurance company. This is the basic requirement for the
bank. When the company requires a huge amount of loan it contacts to the bank for the
loan. The bank than forms a consortium or syndicate along with other banks in order to
arrange the amount. A finance agreement is signed by both the parties and the loan is
given under the agreed terms and conditions.
8.1.3. Accounts Department:

Accounts Department:
This department comes directly under Mr. Mohsin, the general accounts manager.
Here, I came under the supervision of Mr. Ashraf, deputy manager - accounts.
I learned the following things in this department; the department’s job was the
adjustments of the payables by the company. First document is purchase order. It is
issued by the purchase department to the supplier to supply the items as per terms and
conditions. Purchase order contains order number, date, description, units, quantity,
rate, total, GST, grand total, delivery, period of delivery, mode of dispatch, destination.
2nd is the receiving report, this is issued by the factory (mianwali) when they received
their demanded product. If some goods are outstanding these are not present in the
description present on the Receiving Report. 3rd document was extension letter; this is
issued whenever the supplier extended his delivery time (lets say from 30 days to 45
days). 4th document is the exemption certificate; this is attached with only some bills,
when the supplier has already paid his income tax to the government. 5th document is
the sales tax invoice this has the information about the cost of goods and than the sales
tax added to the cost of goods. 6th document is the Bill which has the complete
information about the Number of items, description, quantity, rate and grand total.
7th document is the Interdepartmental note which is issued by the purchase department
to the accounts department for making the payment to the supplier.
These documents are first checked and verified by the employee and then punched into
the system for the preparation of vouchers. These details are then automatically
recorded in the trial and balance of the accounting system.
8.1.4. The Marketing Department

The marketing department is under the supervision of Mr. Rizwan Butt, the general
marketing manager. I came in this department for a very short span. I was under the
supervision of Shahbaz, junior executive. I learned how the orders were dispatched
from the factory. The distributors of the company pick goods from the company on the
daily bases. They are assigned a specific quota for picking the product every day
according to the production capacity of the company. The direct customers however
approach the management of the company for the buying the cement. The company
then sells the product to these customers according to the rate at which they give to
their distributors of that area.
The daily report of sales are sent to the marketing department by the factory, through
the computer system and then the marketing department records the sales made in
their system as well.
Appendices
Appendix – I
Calculations of ratios and Industrial Median:
MapleLeaf Lucky D.G. Pioneer Bestway Industrial

Cement Cement Cement Cement Cement Median
Current Ratio 1.1 .85 2.6 0.82 0.48 1.16
Quick Ratio 0.98 0.74 2.56 0.73 0.41 1.08
Activity Ratios
Inventory
40 23 24.5 19.5 23 26
turnover (days)
Accounts
receivable 20 19 21.23 3.49 36.65 19.6
turnover (days)
Total assets
0.16 0.5 0.12 0.36 0.24 0.27
turnover
Debt Ratios
Debt – to – total
62 63.6 34 69 74 60.52
assets ratio (%)
Debt – to –equity
1.61 1.75 0.52 2.22 2.85 1.79
ratio(times)
Interest coverage
0.6 3.55 4.70 0.31 1.05 2.04
Ratio
Profitability Ratios
Gross Profit
8.35 29.35 31.65 10.2 17.93 19.5
Margin (%)
Net Profit margin
1.13 20.34 25.27 (3) 0.92 8.93
(%)
Operating
4.17 4.8 4.8 4.7 2.5 4.2
expense (%)
Earning Per share (0.03) 9.67 6.43 0.20 (0.55) 3.14
Return on total
0.18 10 3.13 1.08 0.22 2.9
assets (%)
Return on equity
0.47 27.23 4.78 4.5 2.02 2.35
(%)
Appendix – II
Common Size Analysis
Common Size Analysis of Balance Sheet

2007 2006
(RUPEES IN THOUSADS)
Equity and Liabilities
Share capital and reserves
Authorized capital
Issued, subscribed and paid- up capital 18.2 18.4
Reserves 19.01 16
Unappropriated profit 1.2 5.1
38.4 39.5
Non-current liabilities
Loans from related parties 1.06
Long term loans and finances 36.6 41.1
Liabilities against assets subject to finance 1.1 0.06
lease
Lease finance advances and accrued interest 2.9 0.4
thereon
Long term deposits 0.02 0.02
Deferred taxation 3.8 5.1
Employees' compensated absences 0.06 0.05
45.6 46.7
Current liabilities
Current portion of :
- redeemable capital - -
- long term loans and finances 7.6 2.8
- liabilities against assets subject to finance 0.06 0.02
lease
Short term finances 3.4 3.9
Trade and other payables 3.1 3.9
Accrued profit and interest / mark-up 1.6 1.5
Taxation – net 0.2
Dividends 0.2 0.3
16.02 13.8
100 100
ASSETS
2007 2006
(RUPESS IN THOUSANDS)
Non-Current Assets
Property, plant and equipment 82.5 84.04
Intangible assets 0.02
Investments 1.9
Loans to employees 0.03 0.04
Deposits and prepayments 0.2 0.08
82.7 86.08
Current assets
Stores, spares and loose tools 8.6 9.7
Stock-in-trade 1.6 1.04
Trade debts - unsecured considered good 0.8 0.9
Fair value derivative financial instruments 1.03
Loans and advances 0.4 1.6
Investments 4.03
Deposits & short term prepayment 0.07 0.04
Accrued profit 0.002 0.003
Sales tax, customs and excise duty 0.2 0.2
Due from gratuity fund trust 0.04
Other receivables 0.005 0.05
Taxation – net 0.06
Cash and bank balances 0.5 0.5
17.3 13.9
100 100
Common Size Analysis of Income Statement

2007 2006
Sales 100 100
Cost of sales 91.6 62.4
Gross profit 8.4 37.6
Administrative expenses 1.8 1.05
Distribution cost 1.9 0.4
Other operating expenses 0.49 2.06
4.2 3.5
4.2 34.1
Other operating income 1.2 0.5
5.3 34.6
Finance cost 9.1 6
(Loss) / profit before taxation 3.8 28.6
Taxation
Current 0.3 0.5
Deferred 46.5 9.6
4.9 10.1
Profit after taxation 1.1 18.6
Appendix – III
Index Analysis
Index Analysis of Balance Sheet

2008 2006
(RUPEES IN THOUSADS)
Equity and Liabilities
Share capital and reserves
Authorized capital
Issued, subscribed and paid- up capital 121.2 100
Reserves 145.5 100
Unappropriated profit 27.9 100
119.0 100
Non-current liabilities
Loans from related parties
Long term loans and finances 108.99 100
Liabilities against assets subject to finance 2192.4 100
lease
Lease finance advances and accrued interest 916.67 100
thereon
Long term deposits 90.76 100
Deferred taxation 92.38 100
Employees' compensated absences 128.7 100
119.55 100
Current liabilities
Current portion of :
- redeemable capital
- long term loans and finances 332.85 100
- liabilities against assets subject to finance 309.26 100
lease
Short term finances 84.2 100
Trade and other payables 95.6 100
Accrued profit and interest / mark-up 135.67 100
Taxation – net 100
Dividends 99.9 100
141.8 100
122.42 100
ASSETS
2007 2006
Non-Current Assets
Property, plant and equipment 120.15 100
Intangible assets 100
Investments 100
Loans to employees 89.4 100
Deposits and prepayments 271.3 100
117.6 100
Current assets
Stores, spares and loose tools 109.01 100
Stock-in-trade 183.98 100
Trade debts - unsecured considered good 119.04 100
Fair value derivative financial instruments 100
Loans and advances 28.58 100
Investments 100
Deposits & short term prepayment 210.2 100
Accrued profit 71.9 100
Sales tax, customs and excise duty 109.05 100
Due from gratuity fund trust 100
Other receivables 12.7 100
Taxation – net 100
Cash and bank balances 122.2 100
152.1 100
122.42 100
PROFIT AND LOSS ACCOUNT

2007 2006
Sales 64.99 100
Cost of sales 95.5 100
Gross profit 14.4 100
Administrative expenses 111.3 100
Distribution cost 329.28 100
Other operating expenses 15.565 100
77.55 100
7.963 100
Other operating income 162.06 100
10.04 100
Finance cost 99.26 100
(Loss) / profit before taxation 8.56 100
Taxation 33.2 100

Current 31.55 100
Deferred 31.6 100
Profit after taxation 3.969 100
Appendix IV
Appendix V
Trainee Engineers Required in Maple Leaf Cement Factory Ltd-Lahore-Pakistan
THE COMPANY & ITS VISION
Maple Leaf Cement Factory Limited, a member of Kohinoor Maple Leaf Group (KLMG)
is one of the leading cement manufacturers of Pakistan. As our production capacity is
being increased, the organization is experiencing significant growth in its operations for
which it needs to strengthen its human capital, especially in the Plant Operation and
Maintenance Services to effectively cope with work load. With a vision to become the
most preferred manufacturer of quality cement in the country, we have taken a wide
range of initiatives to stay ahead of competition and retain our leadership position.
Manufacturing using state of the art technology and employing resources for efficient
plant operation is the main consideration in the organization's plans.
We are inducting fresh Graduate Engineers in Mechanical, Electrical, Electronics and

Chemical disciplines who are interested to start their career and grow in a challenging
professional environment.
TRAINEE ENGINEERS
JOB RESPONSIBILITIES & CHALLENGES

Successful candidates will be provided an opportunity to develop their professional
career through an extensive training program designed to meet the objectives of the
organization. The position is based at our plant located in Iskanderabad, District
Mianwali. Performance of the individuals shall be evaluated during the training period on
the basis of initiative, capability to accept challenges, devotion to work, communication
skills, planning and organizing capabilities.
JOB REQUIREMENTS
* Bachelors degree in Engineering from UGC recognized institutions.

* Registered with Pakistan Engineering Council.
* Age maximum 25 years.
TRAINING PERIOD & EMOLUMENTS

Training period will be one year. During training a fixed stipend of Rs 20,000 per month
with free bachelor accommodation and medical facilities will be provided by the
company. Depending on the availability of vacancies, trainee engineers showing
outstanding performance may be offered employment in regular grade on completion of
training.
If you fulfill the above mentioned criteria and are interested to develop your career in the
cement industry then send your CV at: hr_mlcfl@kmlg.com latest by 30 April 2007.
Book References
• Philip Kotler, Kevin Lane Keller, 12th edition, Marketing Management, Prentice Hall
• David A. De Cenzo, Stephen P. Robbin, 8th edition, Fundamentals of human resource
management
• Charles W. Hill, 6th edition, International business, Mc Graw Hill / Irwin
• James C. Van Horne, John M. Wachowicz Jr., Fundamentals of financial management,
11th edition.
• Jan R. Williams, Susan F. Haka, Mark S. Bettner, 13th edition, Financial & managerial
accounting, Mc Graw – Hill / Irwin
• Tax Memorandum 2008, A.F. Ferguson & CO.
• Annual report 2007, Maple Leaf Cement Factory Limited, Kohinoor Maple Leaf Group
• Prospectus, Public subscription on 18 & 19 July 2002, Maple Leaf Cement Factory,
Kohinoor Maple Leaf Group, Puma Art Publishers
Electronic References
www.kmlg.com
www.dgcement.com/
www.pioneercement.com/
www.bestwaycement.com/
www.luckycement.com/
www.iptu.co.uk/content/pakistan_employment_law.asp
www.unescap.org
www.defence.pk/forums/economy-development
www.cia.gov
www.iht.com/articles/ap/2008/07/29/business/AS-Pakistan-Interest-Rates.php
www.thenews.com.pk/daily_detail.asp?id=123450
www.pakistan.gov.pk
www.probertencyclopaedia.com
www.thepost.com.pk
www.pwc.com/pk

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Maple Leaf Internship Report

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Maple Leaf Cement factory

COMSATS Institute of Information

Maple Leaf Cement Factory Limited

COMSATS Institute of Information Technology Defense Road off

This report is based on my nine weeks EXPERIENCE at MAPLE LEAF CEMENT

then remain as the most progressive and profitable company in Pakistan in

terms of industry standards and stakeholders interests.

The company shall achieve its mission through a continuous process of

best practice, and human resource and by conducting its business

professionally and efficiently with responsibility to all its stakeholders and

2.2. Corporate Strategy:

We at Maple Leaf Cement Factory Limited manufacture and market different

types of consistently high quality cement, according to the demanding

requirements of the construction industry. Our strategy is to be competitive in

the market through quality and efficient operations.

As a responsible member of the community, we are committed to serve the

2.3. History and Background:

The Cement Industry:

• Valika Cement (now Javedan) in Karachi in 1964

Re – Introduction of the Private Sector:

Kohinoor Maple Leaf Group:

Maple Leaf Cement Factory Limited:

2.4. Company’s Policy

MLCFL’s policy for quality is based upon the mission statement.

“Continual improvement through team work”

3. Organization Structure and Strategies

Export Finance HCD Procureme Accounts IT Marketing

Manager Manager GM AGM / GM GM AM / SAM

Dm / SDM DM / SDM AM / SAM Manager DM / SDM AM / SAM

AM / SAM AM / SAM JE DM / SDM AM / SAM JO

3.2. SWOT Analysis:

• Maple leaf is one of the pioneers of cement industries in Pakistan, established in

3.3. PEST Analysis:

o This instability has affected the businesses adversely.

o The industry also suffered from a drastic decline in profitability as the

economy are still unsolved. year

Inflation is one of these core

Rate of technological change

o It has helped to raise income and alleviate poverty in the developing

PEST Analysis and Maple Leaf:

4.1. Market Potential:

4.2. Maple Leaf Products:

It is an industrial product. It is classified as component material which is categorized

4.2.1 Product diversification:

Product Line Price in Rupees*

SRC but its chemical formula is a bit different. It

4.2.2. Brand name

4.2.3. Market Share

M arket share (local)

Bestw ay, 14.26%

Dew an, 3.00% Maple Leaf ,

Ask. Wah, 4.66%

Askari NZP, 5.07%

Market share ( export)

D.G. Chakw al, Pioneer, 5.27%

Maple leaf , 11.14% Fauji, 2.82%

Ask Wah, 1.70%

Dew an, 1.63%

4.2.4. Packaging and Labeling

This packaging is used for the local sale purposes. It is a standard 50 Kg

2. Poly propylene bags:

4.2.5. Product stage of PLC

4.3. Product Positioning