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Term Report on Packages

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Term Report on Packages

We would like to dedicate this project to our beloved parents and our Sir Riaz hussain.who have always encouraged us Dedication: thorough out in our project and make possible where we are stand today.
Group B1 2 MBA 2nd

Term Report on Packages

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It was very difficult we want to say impossible to complete this research report in such a good manner. guidance and encouragement through out this research. suggestion and assistance in every moment of life. the Almighty. who enlightens our minds to choose the right path of life. We feel honor to express our sincere gratitude to Sir. Group B1 4 MBA 2nd . remarks and endless interest out and completed and thanks to all teachers. We want to thanks our parents for there prays valuable guidance. With out his ideas. and for Holy Prophet Hazrat Muhammad (Peace Be Upon Him) who enables us to recognize our creator.The words are meaning less to express our heart full to Mr. full of zeal. Riaz hussain for his outstanding suggestions and kind help at each and every step. We always found him very much alive. who guides us in the darkness and help in difficulties and all respect. vitality and intellectual curiosity.Riaz hussain for this supervision. Special ovation to our parents they cherished us from our childhood and reminded a source of strength during our studies.Term Report on Packages Acknowledgement: All praises for ALLAH.

the financial statements analyzed by using the horizontal. Resulting information is useful for the owner. Financial statements are able us to analyze the performance of the company and compare with other firms of this industry. This report has been prepared with the objective to develop analytical skills to require interpreting the information and measuring the company’s performance during the 2006 to 2010. we all know that finance is the blood of any business and without it business cannot run. vertical and trend analysis. This report is analysis of financial statements of packages limited Lahore. Financial analysis of company is most difficult task. Sincere attempts have been made to make this report error free but if any errors and omission are found then we apologize for that. liquidity and profitability. the business also moving the huge one and by that result more and more people want to become master in this business. By doing this we are able to know what is financial position and financial structure of the company. Group B1 5 MBA 2nd .Term Report on Packages Preface: As a world going repetdly. investors and creditors of the company. Ratios are important tool to analyze company’s solvency. The main purpose of finance field is to know how the financial analysis is done.

Term Report on Packages Contents: Sr. 1 2 3 4 5 6 7 8 9 Chapters Introduction and history Departments products Financial analysis Horizontal and vertical analysis Ratio analysis Swot analysis Suggestion and recommendations References Page No. 7 25 40 57 83 91 107 113 116 Group B1 6 MBA 2nd .No.

Term Report on Packages Chapter 1 Introdu ction and History Group B1 7 MBA 2nd .

Term Report on Packages Introduction &History Packaging Limited was born out of a dream to set up in Pakistan industries of excellence based on local raw material and talent. Packages Limited is a leading packaging manufacturing company of Pakistan. the first problem was the selection of the site. In the beginning. AB Akerland and Rausing had been the leading paper converters in Europe. Group B1 8 MBA 2nd . It is the sole largest industry in Pakistan serving about 35% needs of the country.  Easy availability of raw material. Pakistanis needed technical collaboration with their Swedish partners.  Easy transportation all over the country. Finally. who was the first managing director of Packages Limited went to Sweden in 1956 to negotiate the contract with AB Akerland & Rausing of Sweden. Lahore was selected due to the following reasons:  Easy availability of workers. Syed Baber Ali Shah.

A new 8color Flexographic printing machine was also installed in the Flexible Business Unit in 2001. Packages entered into an agreement with Vimpex of Austria to provide management and technical assistance to help in the operation. Coates Lorilleux Pakistan Limited. Packages has continued to enhance its facilities to meet the growing demand of packaging products.Term Report on Packages OVER THE YEARS Packages Limited was established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden to convert paper and paperboard into packaging for the consumer industry. Mitsubishi Corporation. Packages Lanka (Private) Limited commenced production in 1998. In 1994. Packages Limited now owns 79% of this company. This project. commenced production in 1995 with equity participation by Packages Limited. Altawfeek Company for Investment Funds. In 1993. Packages Limited successfully completed the expansion of the flexible packaging line by installing a new rotogravure printing machine and expanded the carton line by adding a new Lemanic rotogravure inline printing and cutting creasing machine. called Tri-Pack Films Limited. in which Packages Limited has 55% ownership. a joint venture agreement was signed with Printcare (Ceylon) Limited for the production of flexible packaging materials in Sri Lanka. In 1999-2000. Over the years. In 1996. A team from Packages is currently providing these services and is close to optimizing mill production. Packages Limited has also started producing corrugated boxes from its plant in Karachi from 2002. NWFP. production optimization and capacity expansion of a paperboard mill in Syria. a joint venture agreement was signed with Mitsubishi Corporation of Japan for the manufacture of Polypropylene films at the Industrial Estate in Hattar. Commenced production and sale of printing inks. Saudi Group B1 MBA 2nd 9 . In 2003.

000 tonnes in 1968. ‘people’. ‘progress’.e. ‘promptness’. General Information about Company management Top Management Hierarchy of Packages Limited Group B1 10 MBA 2nd . The Logo……What it is all about? In the packages logo.Term Report on Packages Arabia and the public. i. Packages Limited has had a joint venture with Tetra Pak International in Tetra Pak Pakistan Limited to manufacture paperboard for liquid food packaging and to market Tetra Pak packaging. These words are found and will drive the ideology of the company.equipment. Packages Limited owns 33% of Tri-Pack Films Limited's equity. Packages commissioned its own paper mill with a production capacity of 24. ‘power’. With growing demand the capacity was increased periodically and in 2003 was nearly 100. poignancy’.000 tonnes per year. the letter ‘P’ in the triangle signifies a depth and range of meanings. ‘patience’. ‘prosperity’. ‘productivity’. The mill produces paper and paperboard based on waste paper and agricultural byproducts like wheat straw and river grass. Since 1982. ‘particularity’.

and a corporate culture in which our family can grow and thrive. Together. We seek and retain people who feel there is no compromising on excellence.Term Report on Packages OUR PEOPLE: Our people are our greatest asset. we know how to combine our skills and knowledge to deliver state-of-the-art solutions to our customers Board of directors: Group B1 11 MBA 2nd . Heading our multi-talented team is our leadership of experienced senior management.

Ali joined Packages Limited in July 1987 and presently holds the position of Managing Director of the Company. he also holds directorship of DIC Pakistan Limited and Packages Lanka (Private) Limited. Packages Lanka (Private) Limited. He holds directorship in several other companies including IGI Insurance Limited.Term Report on Packages Mr. International Industries Limited. Currently. educational. He is also serving on the Board of certain philanthropic. BOC Pakistan Limited. Karachi and has served Packages Group companies invarious capacities over the years. International Steels Limited. World Wide Fund for Nature. Syed Maratib Ali Religious and Charitable Trust and Pakistan Business Council. Sanofi-Aventis Pakistan Limited and Tri-Pack Films Limited. Pakistan Centre for Philanthropy and HBL Asset Management Limited besides other engagements in several other organizations. IGI Investment Bank Limited. has been associated with the Company as Chairman of the Board of Directors since 2008. International Steels Limited. Syed Hyder Ali Mr. Nestle Pakistan Limited. He also holds directorship of New Jubilee Insurance Company Limited. Towfiq Habib Chinoy Mr. New Jubilee Life Insurance Company Limited. Chinoy. Pakistan Cables Limited. Syed Aslam Mehdi Mr. National Management Foundation. He has a Masters degree in Business Administration from Institute ofBusiness Administration. He has done his Masters in Sciences from Institute of Paper Chemistry and has also served as Mill Manager of Paper and Board operations of the Company. charitable and business support organizations including Pakistan Centre for Philanthropy. Group B1 12 MBA 2nd . Non-Executive Director. Mehdi joined the Company in 1980 and currently holds the position of Director and GeneralManager of the Company.

. Fauji Fertilizer Company Limited. Global Head Portfolio Management and Global Head Commercial Client Segment.P. Askari Bank Limited. Chartered Accountants.F. Ferguson & Co. computer services. Chartered Accountants. Annual Report of Packages Limited 2010 Mr. Habib Metropolitan Bank Limited. He is also member on the Boards of other institutions i. KSB Pumps Company Limited. Packages Lanka (Private) Limited and TriPack Films Limited. Yacob joined Packages Limited in 1988 and currently holds the position of Director and Finance Manager of the Company.e. Finance and Mutual Fund Industry. Bank Al Habib Limited.Term Report on Packages Mr. taxation. Pak Suzuki Motor Company Group B1 13 MBA 2nd . Mr. Pakistan and has been associated at senior management positions in A. Khalid Yacob Mr. Aurangzeb is a Non-Executive Director of the Company and has over 24 years banking experience and has served The Royal Bank of Scotland in various positions including Country Manager Pakistan. Wazir Ali Khoja Mr. He also holds directorship of IGI Investment Bank Limited. Saudi Arabia. He has over 32 years professional experience in the field of Banking. Mr. IGI Funds Limited. England & Wales and Institute of Chartered Accountants. He is a fellow member of Institute of Chartered Accountants. Muhammad Aurangzeb Mr. CFO Financial Markets Business. Pakistan and Whinney Murray & Co. Morgan’s Corporate Bank for Asia. Khoja is a NIT nominee Director on Board of Packages Limited. asset investment. Yacob has vast experience in financial planning & budgeting. Pakistan State Oil. client development and staff management. financial forecasting and analysis. Riyadh. Currently he is serving as the CEO of J.

Sui Southern Gas Company Limited. Mr. Sui Northern Gas Pipelines Limited. Shell Gas LPG (Pakistan) Limited. He has also been engaged with consultancy assignments for Asian Development Bank and other organizations. Mr. He is also actively involved in social and cultural activities and holds senior positions on the governing boards of several hospitals and philanthropic organizations including Gulab Devi Hospital and Liaquat National Hospital. He also holds directorship of several other companies including Treet Corporation Limited. Loads Limited and IGI Insurance Limited. Treet Power Limited. Khan is associated with the Company as Non-Executive Director. He also holds senior management position in Stora Enso and possesses immense knowledge and experience in paper industry. Pak Telecom Mobile Limited (un-listed) and Sindh Bank Limited.Term Report on Packages Limited. Ali is associated with the Company as Non-Executive Director. He has served various government organizations in different capacities namely Securities and Exchange Commission of Pakistan and Ministry of Commerce. Shamim Ahmad Khan Mr. Mr. Syed Shahid Ali Mr. Matti Ilmari Naaka Mr. Group B1 14 MBA 2nd . Naaka is associated with the Company as Non-Executive Director. Khan also holds directorship of Abbott Laboratories Pakistan Limited and IGI Insurance Limited.

Fauji Fertilizer Company Limited and Alpha Insurance. Sui Southern Gas Company Limited.FERGUSON & CO.T & S. Director General Ports and Shipping and Director General Hajj.G.J. EMIRATES BANK INTERNATIONAL P. ADVISOR SYED BABAR ALI COMPANY SECRETARY ADIJ CAWASJI AUDITORS A. Embassy of Pakistan. Siddiqui is associated with the Company as Non-Executive Director since 2008.Lahore ORR. He has also served as Managing Director Rice Export Corporation of Pakistan. N.Term Report on Packages Mr.S.A. Chairman National Highways Authority. He holds a Masters Degree from the Karachi University and a Post Graduate degree in Development Economics from the University of Cambridge UK.A CITI BANK N. CHARTERED ACCOUNTANTS LEGAL ADVISORS HASSAN & HASSAN. Pakistan Cables Limited. Shahid Aziz Siddiqui Mr.-Karachi BANKERS ABN AMRO BANK AMERICAN EXPRESS BANK LIMITED ANZ GRINDLAYS BANK LIMITED BANK OF AMERICA. He also holds directorship of State Life Insurance Corporation of Pakistan. Wyeth Laboratories Limited. DIGNAM & CO. DEUTSCHE BANK A.F.C HABIB BANK LIMITED MUSLIM COMMERCIAL BANK LIMITED STANDARD CHARTERED BANK THE HONGKONG & SHANGHAI BANKING CORPORATION LIMITED Group B1 15 MBA 2nd . International Industries Limited.

O Amer Sidhu Lahore-54760 Pakistan PABX : 5811541-46. 5874047-49 Cable : PACKAGES KARACHI Telex : 20315 PKGS PK Fax : (021) 5860251 Group B1 16 MBA 2nd .Term Report on Packages HEAD OFFICE & WORKS Shahrah-e-Roomi P. 5820147) REGISTERED OFFICE &REGIONAL SALES OFFICE 1ST Floor. 5811191-94 Cable : PACKAGES LAHORE Telex : 44866 PKGS PK Fax : (042)5811195. Hilal-e-Ahmer House Khayaban-e-Iqbal Main Clifton Road Karachi-75600 Pakistan PABX : 5863941-42.

management system and market opportunities to achieve profitable while providing fair returns to its investors. To be a company that endeavors to set the highest standards in corporate ethics in serving the society. To be a company that attracts and retains outstanding people by creating a culture that fosters openness and innovation promotes individual growth and rewards initiative and performance.Term Report on Packages To be leader in the market Packages serves by providing quality products and superior services to their customers while leaning from their feedback to set even higher standards for out products. technology. (Management) Group B1 17 MBA 2nd . To be a company that continuously enhances it superior technological competence to provide innovative solutions to customer needs. To be a company which combines its people.

speed of delivery and mobilization. quality. Group B1 18 MBA 2nd . which the shareholders. Keep investing in technology. Develop relationships with all our stakeholders based on sustainable cooperation. upholding ethical values.Term Report on Packages To position ourselves to be a regional supplier of quality packaging and tissue products To improve on contemporary measures such as cost. service. management and employees represent and continuously strive for. systems and human resources to effectively meet the challenges every new dawn brings.

All our employees are permitted and encouraged to afford time and attention to personal concerns. personally and as an organization. Group B1 19 MBA 2nd . WORK ENVIRONMENT Our policies and core values are aimed towards creating an informal yet stimulating teamoriented work environment with a culture of sharing and open communication. providing long term benefits to our employees and shareholders. We cherish the diversity of viewpoint of every individual. whether they relate to policy formation and accounting procedures or product development and customer service. and enriching the lives of those whom we serve by fulfilling our corporate responsibility to the best of our ability. We ensure our employee safety and health by providing various in-house facilities such as a gym and making sure that all staff understand and uphold our safety policy. SMART GOVERNANCE We are committed to running our business successfully and efficiently.and injury-free work environment.Term Report on Packages OUR CORE VALUES Underlying everything we do and everything we believe in is a set of core values. We expect excellence from all processes.All employees have the right to a stress. we realize this encourages innovation and develops character. These values help us grow inside and outside. These guide us to deal with every aspect of any issue we might encounter in our personal and professional lives.

Term Report on Packages OBJECTIVES OF PACKAGES LIMITED: Group B1 20 MBA 2nd .

7. buy. 8. farmers and dealers in corn. paper board specialists and board in all their branches. and of distributors. card board. They represent not only the end point of planning but also the end toward which organizing . Packages Limited work’s with the objective of increase in sales. buy. mill board. At the time of establishment the Packages Limited start to work with the objective. die sikers. profit and expansion programs. “To secure a relatively safe and cheap local source of paper. To carry on the business of planters. packages. printers. pulp. 2. leading and controlling are aimed. photographic printers. To carry on all or any of the business of manufacturing and printing of cartons. 4. processes and electric supplies and appliances foundry and factory supplies and hardware of all kinds and chemical substances useful for the company. fire engines. utensils and other articles. electrotypes. wall and ceiling paper. box board. board and plastic film packaging” The objectives for which the company is established are: 1. specialized containers for various commodities.Term Report on Packages Objectives. whether manufacturing or otherwise. packages. straw board. growers. bill posters and advertising contractors. To carry on business as producers and processors of and dealers in poultry. render marketable. cream. Group B1 21 MBA 2nd . type founders. which may seem to the company capable of being conveniently carried on in connection with the above or calculated directly or indirectly to enhance the value of or render profitable to the company’s property or rights. machine shops. cultivators. utensils and other marketable commodities and to establish and maintain showrooms for this purpose. 3. paper and ink manfacturer and dealers in or manufacturers of any of them articles or things of a character similar or analogous to the foregoing or any of them or connected therewith. prepare. printing inks and all other things which can be conveniently manufactured or dealt in either wholesale or retail and either as principals or agents. chromelithographers. sell and trade in manufacture and mill supplies. dairy produce of all kinds and other liquids of every description and to carry on business as cow and buffalo keepers and as manufacturers of all kinds of condensed milk. veneer board. designers. 6. publishers. sell or dispose of otherwise such corn. are the ends towards which activity is aimed. fancy goods dealers. suppliers and sellers of the said articles and contractors for supplying them. grease proof paper and articles made of paper. book binders. paints. description and dimensions. To carry on all or any of the business of manufacturers of and dealers in paper and board of all kinds and Tetra Paper for making Tetra Pak of any type. varnishes. and dealers in raw materials articles and things required for purpose of manufacture and printing of cartons. hay and straw and other products. vehicles. photo-lithographers. stereotypes. To carry on any other business. hay and straw and other produce of the soil likely to be used in the manufacturing of paper and to improve protect against fire and wind and other elements of nature and to treat. plain and corrugated duplex board. engravers. machine tools. exporters. manufacturers importers. staffing . butter. 5. specialized containers for various commodities. To carry on the business of stationers. printers. To carry on the business of manufacturers of an d dealers in chemicals of all kind. cheese and other milk products. trucks. lithographers. To imports and exports.

conferring any exclusive or non-exclusive or limited right to use or any secret or other information as to any invention which may seem capable of being used for any of the purposes of the Company. rights or information so acquired. to obtain technical proficiency in various specialties connected with the paper. state or authority any rights. both in Pakistan and abroad. 12. central or provincial. To acquire and undertake the whole or any part of the business. municipal. To take. 11. 13. that seem conductive to the company’s objects or any of them and to obtain from any such government. concessions and like. To establish laboratories and research and development centers to perform such research and development as the company may deem advisable or feasible. 14. with any person or company carrying on. and hold shares in any other company having objects altogether or in part similar to those of this company. railway. CORPORATE STRUCTURE: Centralization Group B1 22 MBA 2nd . joint venture or reciprocal concessions. privileges and concessions. or any business or transaction capable to benefit this company and to lend money. 15. local or otherwise.Term Report on Packages 9. or carrying on any business capable of being conducted so as directly to benefit this company. or otherwise acquire. authorized to carry on. 10. reissue with or without guarantee. to guarantee the contracts of or otherwise assist any such person or company and to take or otherwise acquire shares and securities if any such company. To enter into an arrangement with any government. To train personnel and workers. or possessed of property suitable for the purpose of this company. cooperation. To carry for purchase or otherwise acquire any patents. union of interest. property and liabilities of any person or company on any business. board and packaging industries or other business of the company. hold. licenses. brevets invention. To enter into the partnership or into any arrangement fir sharing profits. or otherwise turn to account the property. or otherwise deal with the same. or the acquisition of which may seem calculated directly or indirectly to respect of. which the company is. state or authority. . and to sell. or engaged in any business or transaction which this company is authorized to carry on or engage in.

Functional Departmentalization There is functional departmentalization in Packages Ltd.Packages Ltd. Operations Continuous flow is followed in the paper and board mill and assembly in the packaging division as paper board is cut in appropriate sizes.Term Report on Packages The flow of command is centralized in Packages Ltd. printed and then modified to be folded into the desired shape. has its own ink factory equipped with modern machinery and independent laboratories. Services There is not any dealer network and they do not operate in the consumer market for the production of paper and board except of providing tissue papers and toilet paper. provides packaging solutions to major consumer industries in Pakistan through cost effective packaging. It consists of two activities: • • Primary activities Secondary activities Primary Activities Primary activities deal with the bringing material into business. has the value chain that they used to identify ways to create more customer value. All the departments are responsible for their operations Marketing and Sales Packages Ltd. production to serving them. Group B1 23 MBA 2nd . Basically top management makes all the major decisions and there is less direct involvement of the middle and lower management. which supplies ink for the printing of paper and board. Value Chain of Packages Packages Ltd.

of whom 289 are temporary. Then in line are the Technical Manager. Procurement Raw material purchase is done on a regular accumulating basis from the agricultural sector and a major portion of the raw material is imported. Group B1 24 MBA 2nd . Commercial Manager. Company Infrastructure The organizational structure is a flat with the Managing Director at the top of the chart followed by the General Manager who is followed by the Deputy General Manager. About 9000 tons of wood pulp and 1500 tons of chemicals (sulphur and raisin) are imported annually. Final products are transported from the production department and the warehouse via trucks. which are locally available. About 98% of total paper and board used for packaging is produced in its own paper mill. and Finance Manager. Outbound Logistics The packaging division uses all the paper produced by the paper and board mill. Total workforce consist of 3126 people. Mill Manager. Whereas total wood pulp required is imported from Germany and Sweden. which are stored from time to time to accumulate in the warehouse and prevent from stock outs. Wheat straw and waste paper are the main raw materials. 500 are staff while the remaining are permanent workers. Secondary Activities The secondary activities are held as a helper of primary activities. Market Manager.Term Report on Packages Inbound Logistics Raw material for the production of paper and board is obtained locally through regular purchasing from the agricultural sector and to maintain the quality the ingredients are mixed with imported wood pulp. About 9000 tons of wood pulp and 1500 tons of chemical are imported annually. Industrial Manager. Liaison and Admin Manager and three Production Managers.

Its main functions are to plan huge operations. The Planning Manager controls the department. The two main functions of the Planning Department are following: Group B1 25 MBA 2nd . Planning department is one of the most important departments in an organization.Term Report on Packages Chapter 2 Departm ents Departments PLANNING DEPARTMENT As we know that if we want to increase our efficiency. we should plan with excellence. In Packages the planning department is also playing an important role.

This department is second major department in Packages Limited. It only uses paper and other Polly materials. In Packages the production department is also an important one. Printing in the Paper Converting Department is several forms:  Printing & Conversion of Paper  Preparing & Printing Polyethylene bags  Preparing Aluminum Foils Group B1 26 MBA 2nd . 2. The planning department also assists the department. LINK BETWEEN MARKETING DEPT. PACKAGING DIVISION The packaging division is also called as the Paper Converting Division. AND PRODUCTION DEPT. No board is used in this department. The Planning department acts as a link between Marketing department and the production department as there is no direct contact between the two departments. The goods for the customers are manufactured according to the desired standards in this department. Production department is further integrated into two divisions namely: 1.Term Report on Packages 1. The head of the production department is the production manager.e. By Flexo Graphic & Roto Gravure Printing we can get paper or bags in reel forms. The working procedures are based on week basis i.e. the total no of weeks in a year. i. When the orders are placed to the marketing department. PRODUCTION DEPARTMENT The role of production department in a manufacturing concern is very important. machines working hours and material Educate ultimate objective of the Planning department is to improve and maximize the profitability. 2. the information regarding the order is transferred to the planning department where they design and plan the product according to the specifications required by the customers. This department is responsible to plan and organize the allocation of jobs to various machines in a way that their maximum capacity is utilized and that the delivery is given to the customer by stipulated date. There are three types of printing in Packages Limited:  Off-set Printing  Flexor Graphic Printing  Roto Gravure Printing The Paper Converting Department converts the paper into packing material. PACKAGING DIVISION. PAPER AND BOARD MILL. Paper Converting Department was established in 1971. OPTIMIZING THE AVAILABLE CAPACITY To optimize the capacity means to utilize the manpower. There is five years plans and targets in packaging limited.

 Then also bundling these boxes in specifies number. This department producing almost 2. bag making. Corrugated cartons are of great value for the export of fresh fruits.8 million boxes per month. CORRUGATED DEPARTMENT For large scale packaging. are used for transporting consumer products from manufacturer to retail outlets. The artists and designers in the department are very creative and for most of the time are involved in designing the new packages.  Creative (Comprehensive) Section  Mechanical Section CREATIVE SECTION Group B1 27 MBA 2nd . efficient and talented artists and designers are working. creasing. Operations include printing polyethylene extrusion. The operations are carried out on various machines. The department packaging material provides greater protection against damages and pile ranges of products. which is to be produced. In corrugated. These cartons produced in different sizes. Printing. There are two sections in the Art department. For making a box following are the steps:  Making three or five layers sheets from paper rolls. ART DEPARTMENT Packages limited has an art department in which qualified. the board is stitched in the form of boxes. Art department gives attention to the advice of the marketing and of the customer.  Cutting them in sheets according to the size required for package. garments and shoes a wide variety of gum tapes for sealing corrugated cartons are also manufactured.  Cutting. cutting. The share of Corrugated Department in Packages Limited total sales is almost 20%.Term Report on Packages Fine printing is get from Roto Gravure printing.5 to 2. Corrugated department has two main wings  Solid Board  Corrugated Boxes In solid board. slitting. Folding and Gluing these sheets to shape it into the box. Creasing. waxing etc. Packages Limited has been manufacturing “Corrugated Carton” since 1971. then Flexo method. which is expensive. which is second after the Off-set department. boxes are made by stitching and gluing.

which takes place before the completion of the carton. It provides necessary strength to the cartons.. This obviously facilitates the use of a product of a particular brand. LAMINATION DEPARTMENT This department has two machines which laminates the paper on single side or double side. merchandise and facilitate the use of products. CUTTING AND CREASING DEPARTMENT (CC) This department is equipped with latest cutting and creasing machines having a great efficiency along with accuracy. Sensitive black and white films are used for better results for color photograph. Coordination between art designers and mechanical artists is very necessary for good designs. DEFININTION OF PAPER AND BOARD: When the weight of one square meter of sheet exceeds 130 grams. as the customer requirements. Color coating of paper and board is also available. Earlier this whole process was done by manually but recently Packages Limited ha bought a sophisticated fully computerized color scanner. which is called a transparency.Term Report on Packages The main function of this department is to create new designs in accordance with the customer’s specifications. Protection and identification being the overwhelming factors in this process. Substance lower than 130 grams per square meter is called Paper. The printed material PAPER AND BOARD MILL DIVISION DEFINITION OF PACKINGING Packaging is the use of containers and components with the addition of labeling to protect. These designs (blank samples) are shown to the customers and the best one is selected. FOLDING AND GLUING DEPARTMENT (FG) Folding and Gluing is last process.. tea Group B1 28 MBA 2nd . COATING DEPARTMENT Coating Department is the department where it is processed to a smooth. identify. The designer then visualizes the idea and creates four or five Comprehensive designs. This lamination process is started after printing. which are most commonly used in packaging of cigarettes. extra whit upper layer or both sides. it is termed as Board or Paper Board. shinning. CAMERA DEPARTMENT Camera Department makes negatives and color separation from the mechanical by using cameras. toiletries and detergents. MECHANICAL SECTION Approved designs from the creative section come in mechanical section. Designs in black and white are prepared in this section. Board is basically used in the manufacture of cartons where creasing is also required.

M.The paper and board mill started its production in 1968. It works in two shifts. WRITING AND PRINTING PAPER 2.Term Report on Packages pharmaceutical products. food and other consumer items. M. Group B1 29 MBA 2nd . KRAFT LINED BOARD 6. CALENDAR PAPER 6. BOARD 1. In case of emergency third shift is carried out. They make tests about the quality of printing. GREY CHIP BOARD PAPER 1. FILE CARD 3. OFF SET PRINTING PAPER 5. WHITE CARD 5. TISSUE PAPER QUALITY CONTROL DEPARTMENT This department examines the quality of products producing by Production Department. TECHNICAL DEPARTMENT This department is responsible for the repair and maintenance of machines and construction of building and roads in the factory. IMITATION ART PAPER 4. There are 130 employees in this department. grammage of paper or board and compare them with customer specifications and prepare reports about results.G BROWN WRAPPING PAPER 7. TWIST PROOF PAPER 8.G WHITE DUPLEX BOARD 2. IVORY CARD 4. DUPLICATING PAPER 3.

Development and Control Department has three major areas for its activities: Group B1 30 MBA 2nd . World is changing day by day. so it gives much consideration on quality of the product. enabling it to introduce new product lines an develop new materials. This department has well equipped laboratories and pilot machines. It enables Packages Limited to provide better quality and latest packaging to the consumer industry. To keep up with new demands. This department works in close collaboration with Production and Marketing departments. stay out of court and improve profits. New materials. fibers. Development in Packaging material is a continuous process. which are used to test various chemical raw materials and machines.Term Report on Packages THE RESEARCH. adhesives and coating always are researched and developed. chemicals. then it should take care of its Research and Development Department. As Packages Limited wants to retain clients. films. Packages Limited has a Research. The Research. Development and Control Department. DEVELOPMENT & CONTROL DEPARTMENT If the industry wants to grow not just survive.

Packages Limited tries to get as many information and technology which is possible and beneficial to the organization. so it uses largest number of chemicals.D & Control Department divides term “CONTROL” into two areas:  Quality Control  Process Control Quality is synonymous with Packages limited. A lot of development is the result of feasibility studies. Packages Limited has a Paper & Board Mill. which help in working consistently towards attaining better results for customers. study of new production methods and new products. Some time they receive reports of customers’ problems and complaints from Marketing Department and advise to them through the same channels. All such information is collected for research. PERSONNEL DEPARTMENT Group B1 31 MBA 2nd . The “Environment Protection Agency” has some standards for reducing pollution. DEVELOPMENT: Development is a continuous process in any organization. from raw materials to dispatch Department.Term Report on Packages  Development  Control Research RESEARCH: This section is directly responsible to the Production Manager about his research. CONTROL: Packages Limited R. observed at every stage of the production. This is all due to the strict quality Control Standards. This department makes stringent requirements on quality control. Every packages made by Packages Limited guarantees the use of quality materials and processing.

1.  Training and Development of Employees. 2. The function performed by personal department are:  Recruitment & Selection of Employees.  Discipline  Welfare of Employees.  Management Labor Relation.  Compensation Management. The Personnel Department is headed by Personnel Manager.  Keeping Attendance Record  Keeping Employees Record In the Organization. PERSONEL POLICIES The main personnel policies are given below. The main reason behind the policy is that they believe in developing a person on their own grounds keeping in view organizational objectives.  Performance Evaluation and Appraisals. The most important objective of any personal department is how to improve the performance of employees at work. Recruitment Policy Packages Limited is more inclined towards employing fresh graduates than highly experienced persons. Packages Limited possesses a well organized and systematically operated Personnel Department.  Planning Work for the Employees. The prime objective of this department is to manage and utilize the human resources in a fruitful manner. It is obvious that if the employees are good then the pre determined objectives can be easily achieved with efficiency and effectiveness. All the progressive organization give a great attention and importance to their personal department. The success and effectiveness of this department’s policy and programs can be judged from the fact that no problem has come to surface in the recent years.Term Report on Packages Personal department is another one of the most important departments in an organization. This department deals with the selection of employees and their working performance. The success of an organization is dependent upon a successful personnel department. Workers Selection Group B1 32 MBA 2nd .

1. Organization The selected candidates are utilized for the contribution in the organization. After passing out from the institute the technicians are free to seek job in any industry of their choice. Training Training is very important to increase the employee performance. an institute naming " ALI INDUSTRIAL TECHNICAL INSTITUTE " was established. or if the organization adopt the new technology the employees are trained to meet the changes. 3. Preference is given to the children of the employees of Packages limited. House Rent. 2. Executive Selection For the selection of executives if any junior executive is found competent. The duration of the course is two years and training is provided in different fields. Monthly allowances to employees are also given for maintenance of their conveyances. Packages provide training facilities. It is referred as compensation and includes monetary rewards and other facilities. Few projects are also working in this context. A number of facilities are provided by Packages Limited for the training and welfare of its employees. Employees who bring their conveyances to the factory are also given an additional allowance. The students are provided free uniforms. After taking a written test and brilliancy interview the selected candidates appear before the top management for the final selection. subsidized books. Efficient and effective workers are promoted regularly after fixed periods upon the recommendation of the superiors. Following are the grades in the organization.Term Report on Packages All the workers are taken on the designation of apprentice trainee. food and milk and a scholarship. jobs are advertised in the news papers and candidates are called for the interview. At the beginning of the new jobs. After the expiry of probation period if the performance of the trainee is found to satisfactory. 5. Conveyance Allowance Conveyance allowance is given to the all employees. Ali Industrial And Technical Institute To maintain the technical level of the employees. then he is absorbed in the work force. For selection of executive outside the organization.  Food Group B1 33 MBA 2nd . BENEFITS TO THE EMPLOYEES The Packages Limited has given many benefit to its employees. 4. More than 60 percent of the employees have their own houses. then he is promoted to grade E-III. which include on job training and of job training and also arranged refresher courses. House rent is 50 percent of the basic salaries which in some cases is 60 percent of the basic salaries. This institute trains about 200 technicians annually. Loans are provided to the employees to get their own conveyance.

 Uniform And Locker Facility  Provident Fund  Pension  Bonus  Group Insurance  Overtime  Welfare Fund  Social Security  Fair Price Shop  Adult Education  Haj Pilgrimage Scheme  Health Development  Educational Stipends  Service Award  Loan Facilities For Car/Motor Cycle  Mosque MARKETING DEPARTMENT We are living in an age of Marketing. Because it plays a link between the consumer Group B1 34 MBA 2nd . Today in any organization. VIP Mess 2. Manager Mess 3.Term Report on Packages Food is provided to the employees of packages limited. Supervisor Mess 4. There are four messes. Workers Mess The food is provided at very less cost to employees. The food is prepared under most hygienic conditions and is subsidized at highly subsidized rates. You do not sell what you make rather you make what you sell. The rates are highly subsidized in the each mess. which provide meals to the employees These are as follows: 1. Marketing Department is of paramount importance.

launching and pricing of new products or amending the prices of existing products and so on. The major functions which by this department are as follows:  Calculate different expenses of the organization. Senior Sales Officers. This department plays a key role in organization’s performance. Each region is responsible for the sale of its area. Marketing Manager also look after the Consumer Products Division. Sometimes he is also assigned with some customers but usually not more than one. The regional sales manager acts as a coordinator between the sales officers and the Area Manager. One for industrial sales and one is for the consumer products. Then there are senior sales officers and sales officers. Packages Limited has different financial managers who are responsible for the financial aspects of the Packages Limited. the whole organization is on a smooth run. The function of the marketing department works effectively and efficiently.Term Report on Packages and the producer. All managers are assisted by a team consisting of Regional Sales Manager. The respective officer will deal with these customers and solve their problems. Packages Limited has divided into the three regions i.. Each sales officer is allocated a certain number of customers. In case of some trouble. Group B1 35 MBA 2nd . There are two Regional Sales Managers under the area marketing manager. Finance department is responsible to maintains accounts of all departments within the organization. Karachi & Islamabad. Planning division of the Product Department works closely with the Marketing Department to ensure the meeting of established targets. The marketing department plays a key role in the operations of the organization. Lahore. The marketing department of Packages Limited is responsible for sale of industrial & consumer products. Major Functions of Finance Department Finance department performs different functions in the organization to run the finance of the organization more effectively. Like all other departments the Marketing Department of Packages Limited shows a good performance. The marketing manager is responsible for all the marketing operations in all three offices in Lahore. His advice is especially taken while developing. direct under the Marketing Manager.e. The Deputy General Manager who is also among the Board of Directors of Packages Limited is often consulted by the Marketing Manager for important managerial decisions concerning Marketing Department. Each is assisted by the Area Marketing Manager who is second in line of authority. Karachi & Islamabad. So Packages Limited has established its own Finance Department on professional basis. Sales officers and sales supervisor. the Area Manager does involve and tries to settle things. FINANCE DEPARTMENT Finance department has very important role in for any business firm now a days. Finance Manager is responsible for the company’s financial management.

 Distribution of profit to the share holders.  Maintains all the accounts about inventory & imports of material. receiving from sales & other resources.Term Report on Packages  Calculation of all incomes.  Financial planning of the organization.  Getting loans from banks and other financial institutions.  Costing the production. Group B1 36 MBA 2nd .  Maintains all the records about purchases made by organization.  To make the efficient use of money of the company.

The greenfield site spread on 42 hectares is known as Bulleh Shah Paper Mill coined after a famous Pakistani poet from this region. there is a modern pulp mill. coater and a corrugators plant installed at the Greenfield site as well. PM7 which is expected to start production by end of 20008 is a completely rebuilt 4.5m Voith machine shall produce writing printing paper. Guest house Group B1 37 MBA 2nd . PM6 already in operation since 2007 manufactures container board.Term Report on Packages The Bulleh Shah Project : In 2005. Packages Limited started a new pulp and paper mill project in Kasur located 50 km south of Lahore. The greenfield site comprises of two modern paper machines PM6 and PM7 that will enable us to increase our paper and paperboard production from 100.000 tones per year. In addition to the paper machines.000 to 300.

watch satellite TV / DVD moves or read books.Term Report on Packages GUEST HOUSE Exclusively for foreign visitors. company has built a 14 room guest house with all required appliances. Group B1 38 MBA 2nd . there is dining room and lounge. air conditioned and furnished bedroom and washroom. cooking and room cleaning. facilities and services. Guest house staff is available everyday for laundry. GUEST AREA In common guest area. In lounge guests can play games. Each room has own satellite TV.

mashed potatoes. Pancakes. For relaxation guests can use traditional Finnish sauna. pharmacy or other services. Wireless internet link helps guests to keep in touch with work offices and home.Term Report on Packages For activate persons guest house has some fitness facilities like treadmill. Mill area is located nearby Kasur city in case quests need to find doctor. Group B1 39 MBA 2nd . barbeque or pasta pasta are available on request when home sickness too overwhelming. which is available everyday. Guesthouse own cook has learned many western food courses. fitness bike and badminton court.

Term Report on Packages Chapter 3 Products: Group B1 40 MBA 2nd .

Term Report on Packages PAPER & BOARD: We are producing high quality paper and board since 1965 using environment friendly manufacturing processes. paper and board products touch our lives in a thousand ways every day. From coffee cups to the books we read. We specialize in making a variety of duplex boards and paper. Paper is available in the following weights: Type of Paper Group B1 Weight (g/m2) 41 MBA 2nd . PAPER We produce: high gloss writing paper machine glazed / special poster paper fluting paper liner for shipping cartons corrugating medium paper wood-free writing/printing paper Paper quality and weight is determined by the client's specific requirements and Packages ensures this is carried out to the exact specifications provided. Our products are tested for high performance in terms of strength. stiffness and gloss. from Tetra Pak juice containers to huge shipping containers.

from four main paper machines of different capabilities.90 TECHNICAL EXPERTISE: Our production capacities exceed 100.250 150 .Term Report on Packages Test liner Corrugated medium Paper/Fluting Wrapping Paper High gloss writing paper Poster Paper 125-220 120-170 70-90 58-68 40-90 BOARD: We manufacture several types of board. This material is used in making aseptic packaging for milk. Packages Limited is among the first companies in the world to manufacture paper & paper board using a pulp mixture of wheat straw. a basic raw material in liquid food packaging.000 tonnes per annum.205 150 . cotton linter. is being manufactured since 1979 for Tetra Pak Pakistan Limited. Group B1 42 MBA 2nd . These paper machines are supported by two pulp mills and a chemical recovery and effluent treatment plant alongwith allied support services. recycled pulp and wood pulp. fruit juices and other perishable food items. resulting in improved strength properties and increased stacking strength of containers. These environment-friendly processes use fewer chemicals. Some of our board products are: liquid packaging board food grade board duplex board / chipboard bleached board tobacco board and cardboard liner board Board is available in the following weights: Type of White Board Bleached Board Duplex Board Cardboard Liquid Packaging Board Poster Paper Weight (g/m2) 195 .290 40 . cream.450 160 . Food Board. kahi grass. oil.

20 thousand tonnes per annum. Our customized packaging and consistent quality giveallour cartons superior shelf visibility.Term Report on Packages CARTON BUSINESS UNIT: The carton business unit is an integral part of the manufacturing facilities at Packages. Carton Business Unit production experts work closely with pre-press and technical staff to deliver a durable. INDUSTRIES: Group B1 43 MBA 2nd . The total board consumption of the carton line is around 18 . The strong backward integration within the Packages value chain has given the carton line a competitive edge in terms of backend material availability. Constant improvements in technology help our customers exert exact control over each stage of the manufacturing process. aesthetically pleasing and technically sound package to the customer. Prompt material availability reduces turn around time and ensures timely delivery. The foundations of this business line were laid about 50 years ago with the formation of the offset printing department.

Packages expanded the line through installation of a new Lemanic rotogravure printing and inline cutting creasing machine in the year 2000. CORRUWAL BUSINESS UNIT: Group B1 44 MBA 2nd .Term Report on Packages Food and Beverages Soap / Detergent Pharmaceuticals Match Electronics Shoe Tobacco TECHNICAL EXPERTISE: The Carton Business Unit's technical competence is reflected through two modes of printing: offset and rotogravure. The state-of-the-art Roland 700 with twin coating has enabled Packages to introduce innovative printing with special effect coating and gold coatings. New lines have been introduced with the addition of a Roland 700 double coater in the Offset Printing department. a Bobst Evoline in the Cutting and Creasing and a Bobst Media 100 in the Folding and Gluing departments. and blade bending machines available for high quality die making. laser cutting. Customers can now take advantage of even higher precision and consistency in cutting and creasing. The commissioning of the new in-house CIM Line has made advanced counter milling. The former is a high end tool for more complex design themes while the latter consistently services high volume orders.

INDUSTRIES Textile Food Tobacco Soap Group B1 45 MBA 2nd . Capacity increase and product development continue. With the commissioning of our corrugated plant in Karachi.Term Report on Packages Packages has been manufacturing corrugated cartons since 1974. Produced in a variety of sizes. Corrugated cartons are of great value to our diverse portfolio of customers for secure transportation of their products to local and international markets. we have the capability of producing seven million corrugated cartons to cater to the ever-increasing demand of high quality shipping cartons. these cartons are of great value for in-country goods distribution and export. .

glued. Used where colourful package design and preserving product quality are important. such as in the food and pharmaceutical industries. PRODUCT DEVELOPMENT: After customer feedback and extensive research. flexographic printing offers economy with quality. and offers other specialized services such as rotogravure printing and sleeve-making. gases and odours. flexible packaging is steadily gaining importance in the packaging industry. Flexible packaging combines different plastic films. RSC stitched or die cut cartons. FLEXIBLE BUSINESS UNIT: With improved barrier properties and lower cost compared to rigid packaging. Customers have the flexibility to choose from regular slotted containers (RSC).Term Report on Packages Detergent TECHNICAL EXPERTISE: Our corrugated finishing division can print in up to three colours. Our flexible line makes high quality packaging films and laminates. INDUSTRIES Soap Tobacco Group B1 46 MBA 2nd . aluminium foil and paper to produce laminates of two or more layers for providing layered protection against moisture. Packages has developed special liner and fluting that gives extra strength to containers. in particular increasing their stacking strength and their resistance to bursting.

as we transform our market awareness and shared technology into innovative and cost effective solutions for. Customers also benefit from the increased knowledge base.customer. Coca-Cola. with key business partners as diverse as Print Care. Tetra Pak and Mitsubishi Corporation.Term Report on Packages GLOBAL PARTNERS One of the best ways for a business to leverage its products and increase growth is through association. Our business alliances help us manage our business more effectively. The Packages Group is proud of its long standing network of friends and family. as well as helping us and our partners develop and diversify our interests. MBA 2nd 47 Group B1 .

IGI Investment Bank Ltd. Ltd.1 Billion with 2.Term Report on Packages Nestle Pakistan Ltd Tri-pack Films Ltd.. The Company has production facilities in Port Qasim (near Karachi) and Hattar NWFP. Packages Lanka Pvt. DIC Pakistan Ltd. Private Limited Company. It is a Public LimitedCompany. the world’s leading liquid food packaging company.41. Coca-Cola Beverages Pakistan Ltd. Tetrapak Pakistan Ltd. Nestle sales in year 2009 were Rs. Packages Limited has 33.Nestle now owns 59% of the enlarged company. Public Limited Company.7 billion. In 1988. Established in 1982.3% ownership in the company while Mitsubishi Corporation of Japan holds 25% shares. and sells it in Tetra Pak containers. S. Nestle Pakistan Ltd Milkpak was established in 1981. IGI Insurance Ltd.422 employees. Group B1 48 MBA 2nd . processes it by the UHT method. Tri-pack Films Ltd.5. Tetra Pak Pakistan Limited is a joint venture between Packages Limited and Tetra Laval International. DIC Pakistan Ltd. It collected milk from the rural areas. Tri-Pack sales net of sales tax in 2009 were Rs.800 tones.A. Total number of employees: 300. Tri-Pack manufactures Bi-axially Oriented Polypropylene film (BOPP) with an annual capacity of 34. Tetra Pak Pakistan Ltd. The number of employees of the company is 351. Nestle of Switzerland bought into Milkpak and expanded its scope and activities .

company. It is a Public Limited Company. IGIIL acquired the insurance business of Pakistan branch of Royal & SunAlliance Insurance Plc in year 2004.184 million in the year 2009. Packages Limited owns 79% of this company. a joint venture between Packages Limited (55%) and Dainippon Ink and Chemicals Asia Pacific Singapore Pte. Packages Lanka Private Limited had sales of Sri Lankan Rs. IGIIL holds a very important position in the Group having investments in all Group Companies. Dainippon Inks and Chemicals is one of the largest printing ink manufacturing groups worldwide. Sri Lanka. Ltd. The number of employees of the company is 135. IGIIL. Group B1 49 MBA 2nd . Limited (45%). It had a gross premium of Rs. Private Limited. Number of employees: 169.1. It is a joint venture between Packages Limited and Printcare (Ceylon) Limited of Sri Lanka. IGIIL is global network partner of Royal & SunAlliance Insurance Plc.1. Packages Lanka (Pvt) Limited is based near Colombo.152 million in the year 2009. Net worth at realizable value is over Rs.1.1 billion Number of employees are 131. was established in 1953. The Insurance company of the Group.9. Non-listed publiclimitedCompany. This project was set up in 1998 for the manufacture of flexible packaging material. Gross sales for 2009 were Rs.Term Report on Packages Established in 1994.790 million. Packages Lanka (Private) Limited has an annual capacity of producing 54 million meters flexible packaging. IGI Insurance Ltd. Packages Lanka Pvt.

Our commitment: Group B1 50 MBA 2nd . It is a Public Limited Company. it also offers corporate finance and advisory equity brokerage. the Bank had gross revenue of Rs. Coca-Cola Beverages Pakistan Ltd. holds 92% shares. portfolio management and mutual funds advisory services. The Packages Group owns 48% of the equity. an Asset Management Company. U. IGI Investment Bank acquired Finex Securities Limited.S.Term Report on Packages IGl Investment Bank Ltd. IGI Investment Bank is licensed to carry out all investment finance and leasing operations as a Non-Banking Finance Company. a brokerage house in Karachi. In 2006. Established in 1990. The number of employees is 93.769 million.219 employees. Atlanta. and has established IGI Funds Limited. The company has 3.A. In the year 2008-2009. In addition. Packages Group is a minor shareholder in CocaCola Beverages Pakistan Limited (CCBPL) of which The Coca-Cola Company.

acquisition of new technology. Our pledge is to provide the market with the best quality products at competitive prices through a customer-driven and service-oriented. dynamic management team. Appropriate resources of the company will be directed towards achieving the quality goals through employee participation Group B1 51 MBA 2nd . To meet this obligation.Term Report on Packages QUALITY POLICY We at Packages Limited are committed to producing quality products which conform to our customer requirements and strengthen our position as a quality-managed company. and regular reevaluation of its quality control and assurance systems. the company will continue updating skills of its employees by training.

avoid waste Ensure that all its present and future activities are conducted safely. newsprint. and reduce water loss.Term Report on Packages ENVIRONMENTAL POLICY Packages is committed to the environment. RECYCLING PAPER Packages has the capability of producing 100% recycled paper. Some of our objectives are to increase recycling rates. We realize that we live in a world where resources are finite and the eco-system has a limited capacity to absorb the load mankind is placing on it. Various grades of paper and board (shipping. its customers and the public Develop plans and procedures and provide resources to successfully implement this policy and for dealing effectively with any emergency Provide environmental. That is why we make every effort to make sustainable development a reality. to other individuals and to environment Ensure that all its activities comply with national environmental. health and safety training to all employees and other relevant persons to enable them to carry out their duties safely without causing harm to themselves. Health and Safety (EH&S) Policy Minimize its environmental impact. without endangering the health of its employees. These and other environmental concerns are exemplified in our environmental policy. magazines. which every employee is expected to uphold and implement. imported waste paper) are collected and then shredded. health and safety regulations This policy shall be reviewed as and when required for betterment of the same. This is fed to a huge Group B1 52 MBA 2nd . cartons. improve effluent and waste management. as is economically and practically possible Save raw materials including energy and water.

A local boiler meets the company's steam demands. At 300 tonnes per tonne of pulp produced. a dissolved air flocculation system and special filters have been added to different streams of reusable water and wherever possible. As a result of combined efforts. fresh water in various processes has gradually been replaced with this water. health and safety. An even bolder step was taken with the import of Chemical Recovery Plant in 1997. the quantity of water used. insoluble material settles down and is constantly scooped out. EFFLUENT AND WASTE MANAGEMENT Discharged water from the paper and board mill goes to a septic tank where heavy. where organic impurities are destroyed and the steam generated is utilized for evaporating the incoming liquor. is concentrated in this plant to 58% solids and then incinerated in a waste heat boiler. It includes reduction of the usage of water in all stages of its processes. is dissolved in water to recover any available chemicals. containing inorganic compounds. WATER MANAGEMENT This is a recent part of the green policy adopted by Packages. It uses guidelines provided by the National Environment Quality Standards (NEQS) as a benchmark. Better water management has led to better utilization of water and other raw inputs. 20% were spent on environmental issues alone. Steam consumption and heat energy consumption in 2003 have both shown a reduction of over 16% each compared to 1999. Group B1 53 MBA 2nd . The ash. These activities have acquired such importance for the company that out of US$ 100 million spent on new processes and technology in the last few years. To reduce it. The electricity use in the same period has gone down by an impressive 25%. effluent management. Black liquor. control on air emissions. which poses severe difficulties in the effluent treatment system in any pulp mill. the quantity of water itself poses serious problems of extraction and disposal. The introduction of the new method of using wheat straw as a raw material was a bold step partly aimed at reducing the chemical load of the effluent. Specialized cleaning equipment removes the residual sludge and suspended particles. even modifying processes to conform to its objectives. energy conservation and maintenance of health and safety standards in the company. The suspended solids are separated and treated on sludge de-watering equipment and thickened for disposal. INDEPENDENT ENERGY HOUSE Packages is self-sufficient in its power generation capabilities with an installed capacity of 26MW. RESULTS hese efforts were streamlined in 1997 through the formation of a committee of internal experts to look regularly into issues concerning environment.Term Report on Packages mixer where a controlled percentage of virgin pulp and used paper are mixed together to produce material for recycled paper. as well as its BOD and COD has been reduced significantly. The committee is currently involved in the management of fresh water use.

Term Report on Packages Group B1 54 MBA 2nd .

613 (78.995) 1.181.068 158.475) 252.347.820 9.Term Report on Packages Packages limited Lahore Statement of profit and loss For the year ended December 31.669.909) 5.060) 6.100.846.136 6.294.430 8.30 Group B1 55 MBA 2nd .604 (349.027.869.005 757.587) (213.780 87.599 (6.878 1.172. 2006 (Rupees in thousands) Local sales Export sales Total sales Less: sales tax and excise duty Commission Net sales Cost of sales Gross profit Adminstrative expenses Distabution and marketing cost Other operating expenses Other operating income Profit from operations Finance costs Investment income Profit before tax Taxation Profit for the year Earnings per share Rupees 8.308 7.551.907 1.934) (255.840 (247.

439) 122.230 10.362) 1.064) (240. 2007 (Rupees in thousands) Local sales Export sales Total sales Less: sales tax and excise duty Commission Net sales Cost of sales Gross profit Administrative expenses Distribution and marketing cost Other operating expenses Other operating income Profit from operations Finance costs Investment income (Loss)/Profit before tax Taxation (Loss)/Profit for the year (Loss)/Earnings per share 10.948 Rupees 51.635 (7.273 (348.501.995 1.360 9.365.27 Group B1 56 MBA 2nd .632.539.378) 4.Term Report on Packages Packages limited Lahore Statement of profit and loss For the year ended December 31.357) ( 145.771 10.028.325.598 (367.728 4.511.948 (307.130 1.829.000) 4.185 587.224 174.199.412.

2008 (Rupees in thousands) Local sales Export sales Total sales Less: sales tax and excise duty Commission Net sales Cost of sales Gross profit Administrative expenses Distribution and marketing cost Other operating expenses Other operating income Profit from operations Finance costs Investment income (Loss)/Profit before tax Taxation (Loss)/Profit for the year (Loss)/Earnings per share 13.879 (307.480) 943.889) (112.224.056.094) 948.825) Rupees (2.779 (11.086 14.32) Packages limited lahore Statament of profit and loss For the year ended december 31.837 603.669 2.598.281.2010 (Rupees in thousands) Local sales Group B1 57 20.300.144 12.064) (195.425) (324) 336.923 2.475 19.Term Report on Packages Packages limited Lahore Statement of profit and loss For the year ended December 31.965 405.198 MBA 2nd .189) (362.299 (512.662.326 (1.697.076.

185) 202.210.301.235 21.346) (15.467) 795.535.2009 (Rupees in thousands) Group B1 58 MBA 2nd .94) (3.638) (15.269) (565.441 (521.525 18.323) 997.969 3.740.94) Packages limited lahore Statament of profit and loss For the year ended december 31.239.837.Term Report on Packages Export sales Total sales Less:sales tax and excise duty Commisison Net sales Cost of sales Gross profit Adminstrative expenses Distribution and marketing cost Other operating expenses Other operating income Impairment charged on available for sale investment Loss from operations Finance costs Investment income (Loss) before tax Taxation (Loss) for the year (Loss)/Earnings per share Basic Diluted 1.266.079) (332.908 (17.556 34.283) (1.260 (317.368 (104.425) Rupees Rupees (3.433 3.

833 (13.713 757.901 MBA 2nd .131.043.72 Packages limited Lahore BALANCE SHEET For the year ended December 31.991) (2.793.924 Rupees Rupees 48.573 (1.705.533. 2006 (Rupees in thousands) ASSETS: NON-CURRENT ASSETS Property.837 5.455 14.433) 9.575 16.489.210) (118.775.335 (467.071.498) 307.736.115 2.532 14.278.16 44.831) (1. plant and equipment Intangible assets Investment property Assets Subject to finance lease Group B1 59 3.769.682) 385.266.299 (1.582) (444.063.649) 4.Term Report on Packages Local sales Export sales Total sales Less:sales tax and excise duty Commisison Net sales Cost of sales Gross profit Adminstrative expenses Distribution and marketing cost Other operating expenses Other operating income Impairment charged on available for sale investment Loss from operations Finance costs Investment income Profit before tax Taxation Profit for the year Earnings per share Basic Diluted 15.969 2.556 34.179.288 3.423 1.

195 5.673.665 180.361.000 _ 688.336 6.000 698.222 22.775.143.673.414.254 485. and paid up capital Reserves Unappropriated profit Total Equity NON-CURRENT LIABILITES Long term finances Liabilites against assets subject to finance lease Deferred liabilities Total Non current liabilites CURRENT LIABILITES: Current portion of liabilites against Assets subject to finance lease Finances under mark up arrangements-secured Derivation foreign currency forward options Creditors .455 6.Term Report on Packages Capital work-in-progress Investments Long-term loans and deposits Retirement benefits Total Non current assets CURRENT ASSETS: Stores and spares Stock-in-trade Trade debts Loans.259.101.055 MBA 2nd .797 6.224 _ 22.647. deposits.253 363 26.666 13.672.000.476 1. plant and equipment Intangible assets Investment property Group B1 60 10.56 _ 2.000.173 821. 2007 (Rupees in thousands) ASSETS: NON-CURRENT ASSETS Property. subscribed.160 353.857 _ 1.030.665 1.703 3.280. advances.872. accured and other liabilities Provisions for taxation Total current liabilites Contingences and commitments Total liabilities and equity 10.521 106.312.688.455 851 1.476 Packages limited Lahore BALANCE SHEET For the year ended December 31.618 69. prepayments And other receivables Cash and blank balance Total current assets Total current and non current assets EQUITY AND LIABILITIES: CAPITAL AND RESERVES Authorized capital Issued.795 6.805 19.

840 2.800.172 MBA 2nd .564.206.443 Packages limited Lahore BALANCE SHEET For the year ended December 31.000 733.797 18. plant and equipment Intangible assets Investment property Capital work-in-progress Investments Long-term loans and deposits Retirement benefits Total non current assets Group B1 61 11.362.155.500 955.381 33.346.240 4.438.683 10.601. prepayments And other receivables Cash and blank balance Total current assets Total current and non current assets EQUITY AND LIABILITIES: CAPITAL AND RESERVES Authorized capital Issued.191 1.288.041 715.402 33.326.166 88.500.293 241 25.485 155.735 13.790 13.019 1.Term Report on Packages Capital work-in-progress Investments Long-term loans and deposits Retirement benefits Total Non current assets CURRENT ASSETS: Stores and spares Stock-in-trade Trade debts Loans. and paid up capital Reserves Unappropriated profit Total Equity NON-CURRENT LIABILITES Long term finances -secured Deferred liabilities Total Non current liabilities CURRENT LIABILITES: Current portion of long term finances-secured Finances under mark up arrangements-secured Trade and other payables Total current liabilities Total liabilities and equity 7.290 _ 401.965.111.170.102 127.362 1.421 101.518 28. 2008 (Rupees in thousands) ASSETS: NON-CURRENT ASSETS Property.302.772 12.285.262 28. subscribed.928 525.438.443 1. deposits.259 244.293 8.294 8.022 4.837.080. advances.110.

908.633 Packages limited Lahore BALANCE SHEET For the year ended December 31.401 139.629. deposits. 2009 (Rupees in thousands) ASSETS: NON-CURRENT ASSETS Property.788 13.261 1.825) 16.145.633 1.616.034.272.923.400 840.304.523.061 15.076 199.260 .572 12.332 137 55. advances.161.000 2.487 3.904 4.795 15.900 27.461. plant and equipment Intangible assets Investment property Capital work-in-progress Investments Long-term loans and deposits Retirement benefits Total Non current assets CURRENT ASSETS: Group B1 62 MBA 2nd 19.500.578 8.599.577 107.461 35.000 843.Term Report on Packages CURRENT ASSETS: Stores and spares Stock-in-trade Trade debts Loans.099.150 5.723 1.017.400 6.873 35.188 550. prepayments And other receivables Cash and blank balance Total current assets Non current assets classified as held For sale-investment in related party Total current and non current assets EQUITY AND LIABILITIES: CAPITAL AND RESERVES Authorized capital Issued. and paid up capital Reserves Unappropriated profit /(Loss) Total Equity NON-CURRENT LIABILITES Long term finances –secured Deferred liabilities Total Non current liabilities CURRENT LIABILITES: Current portion oflong term finances –secured Finances under mark up arrangements-secured Trade and other payables Total current liabilities Liabilities associated with non current asssets Classified as held for sale advance against sale of shares Total current liabilities Total liabilities and equity 841.819 1.049 692.602 (195.587.652. subscribed.188 6.624.335 65.034.

000.504(2009:84.000) ordinary share of Rs.138 1.000(2009:22.608.000 124.496 1.000) 10% non-voting cumulative Preference shares/convertible stock of Rs.180.875 3.970.605.752.868.353.000 843.099 23.000.817 593.488.608. deposits.852 10.500. subscribed.681 1.099.504) ordinary share of Rs. prepayments And other receivables Income tax receivable Cash and blank balance Total current assets Total current and non current assets EQUITY AND LIABILITIES: CAPITAL AND RESERVES Authorized capital 150.379.951 4.669 455.000.000 4.102.406.429 86. advances.907 7.029 1. and paid up capital 84.000. 190 each Issued.Term Report on Packages Stores and spares Stock-in-trade Trade debts Loans.795 17.769 35.216 203.416.396 1.379.000 (2009:150. 10 each 22.693 _ 35.978.516 249.029 Group B1 63 MBA 2nd .577 2.742. 10 each Reserves Preference shares/convertible stock reserve Unappropriated profit Total Equity NON-CURRENT LIABILITES Long term finances Deferred income tax liabilites Retirement benefits Deferred liabilities Total Non current liabilites CURRENT LIABILITES: Current portion of long-term finances-secured Finances under mark up arrangements-secured Trade and payables Accured finance cost Total current liabilites Contingences and commitments Total liabilities and equity 870.720 7.

219.392 31.557 31.861.151 1.643.049.486 2.275 64 MBA 2nd .588 753.669.090. prepayments Group B1 17.Term Report on Packages Packages limited Lahore BALANCE SHEET For the year ended December 31. plant and equipment Intangible assets Investment property Capital work-in-progress Investments Long-term loans and deposits Retirement benefits Total Non current assets CURRENT ASSETS: Stores and spares Stock-in-trade Trade debts Loans.817 1.037 128.429 94.950 3. 2010 (Rupees in thousands) ASSETS: NON-CURRENT ASSETS Property.328 12. deposits. advances.

441 26. and paid up capital 84.929.173 10.361 766.987 39.000 (2009:150.000(2009:22.885 NON-CURRENT LIABILITES Long term finances Deferred income tax liabilites Retirement benefits Deferred liabilities Total Non current liabilites 7.956.533.180.143 8.500.168.273.000 167 149.059 471.379.804 1.504) ordinary share of Rs.624.379.000. 190 each Issued. 10 each 22.000.140.804 Group B1 65 MBA 2nd .795 24.288 _ 39.107 1.875 261.421.000.000 4.231 1.774 1.000 843.000) ordinary share of Rs.Term Report on Packages And other receivables income tax receivable Cash and blank balance Total current assets Total current and non current assets EQUITY AND LIABILITIES: CAPITAL AND RESERVES Authorized capital 150.712 2.794.218.605. 10 each Reserves Preference shares/convertible stock reserve Unappropriated profit Total Equity 265.504(2009:84.624.000.631 CURRENT LIABILITES: Current portion of long-term finances-secured Finances under mark up arrangements-secured Trade and payables Accured finance cost Total current liabilites Contingences and commitments Total liabilities and equity 14.291 2.286 141.000) 10% non-voting cumulative Preference shares/convertible stock of Rs. subscribed.

263 -16.816 326.117 -1.191 -6.112 -708.667 -1.270 -194.335 -7.048.615 -220.783 774.268 66 .937 -6.Term Report on Packages Packages limited Lahore CASH FLOW STATEMENTS For the last five years Operating activities: 2010 Cash generated from operations Finance cost paid Taxes paid Payments for Group B1 2009 2008 2007 2006 2.805 618.790 -988.479.800.971 -12.985 -285.099 -38.051.292 -490.738 -139.299 MBA 2nd -1.

500 5.990 -371.325.758 -972.493 948.159 MBA 2nd .650 822.000 advance against disposal of investments --Net dec.000 1.684 7. in long term loans and deposit 11.377 Cash flow from investing activities: fixed capital expenditure -633.879 646.208 - -851 -5.180 Cash flow from financing activities: payment of long term finances -7.452 proceeds from issue finance Payment of finance lease Group B1 67 -35.778.076.272 -4.617 -30.234.401 71.865.017.942 -1.683 -20.384 506.236 Net cash from operating activities 502./inc.252 48.150 89.122 6.339 -901.488 -44.447.811 -7. 399.151.plant and equipment 25.392 -12.198.548 -164.936 -4.564 -2.148 15.000.354.064 -63.841.061.087 Net cash genreated from/used in investing act.400 Proceeds from long-term finances proceeds from issuence of preference shares/convertib le stock/net 4.Term Report on Packages accumulating compensated absences Retirement benefits paid -50.903 -27.000 Dividends received 946.543 proceed from disposal&invest ment 7.570 -2.418 21.675.525 proceeds from disposal of property.364 -6.292 313.428 12.968 -10.034 23.975 Investments 50.346.504 1.

061.938 - - -418.157 -1.388.591.688 cash and cash quivalent at the end of the year 998.576.953 19.634 ) 874. 2005 698.224 Cash and cash quivalent at the beginning of the year 629.455 4.757.912 -3.388.208 5.997 -1.384 1.088.Term Report on Packages liabilities proceeds from issuance of ordenary shares DIVIDENT PAID Net (decrease) / increase in cash and cash equivalents Net cash(used in)/genrated from financing activites -272.938 Net increase/decreas e in cash and cash equivalent 369.855 -2.088.154 417.224 -299.688 2.634 2.914 629.194 -417.902) Group B1 68 MBA 2nd .174.090.997 Statement of Owners Equity Rupees in Thousands) Share Capital Share Fair Value Premium Reserve General Reserve Hedging reserve Balance as on December 31.795 2.757.591.927.986.174.948 1.277.63 1 874.384 ) -272.157 (1.855 (2.927 -2.15 4 369.500 3.631 -299.230 2.936 (76.

686.477 _ 3.795 _ 2.905 _ _ _ 74.187 _ 698. 6.953 _ 198.Term Report on Packages Final Dividend for the year ended December 31.936 _ _ (continued…) Statement of Owners Equity Group B1 69 MBA 2nd .2005 Rs.00 Per share Transferred from Profit And loss Account Fair value gain during The year Transferred from Profile And loss Account on disposal of Shares of the resource Group (TRG) Pakistan Limited Gain arising on foreign _ Currency forward options Entered into as part of Cash flow hedge for the Purchase of plant Transferred to CWIP On expiry of foreign Currency forward Options (note 110) Profit for the year Balance as on December 31.968. 2006 _ _ _ _ _ _ _ _ _ 596.000 _ _ _ 178.250 _ _ _ _ 697 _ _ _ _ _ 1.

00 Per share Transferred from Profit and loss Account Fair value gain during The year Transferred from Profit And loss Account on disposal of Shares of the resource group (TRG) Pakistan Limited (419.163 Total Balance as on December 31.100.101. 2006 Group B1 _ 1.016.2005 Rs.666 70 13.672.736.277) (596.780 74.250 _ 697 Gain arising on foreign Currency forward options Entered into as part of Cash flow hedge for the Purchase of plant Transferred to CWIP On expiry of foreign Currency forward Options (note 110) Profit for the year Balance as on December 31.185 6.000) _ _ 178. 6.255 Final Dividend for The year ended December 31.780 6.277) (491. 2005 7.100.Term Report on Packages (Rupees in thousands) Unappropriated Profit & loss Account 1.797 MBA 2nd .905 _ 6.

31 2007 _ _ _ _ _ _ _ 5.940 _ _ _ _ 2.936 Balance as on December 31.968.953 (1.829 _ _ _ _ 733.686. 10 Each issued as fully Paid bonus shares Fair value gain during The year Transferred from Profit And loss Account on disposal of Shares of the resource group (TRG) Pakistan Limited & Nestle Pakistan limited Profit for the year Balance as on December.476.751 _ _ 9.795 Share Premium 2.477 General Reserve 3.735 _ _ 2.953 Fair Value Reserve 198.986.975 ordinary Shares of Rs.885.493.536 Statement of owners Equity (Rupees in Thousands) Group B1 Unappropriated Profit & Loss account 71 Total MBA 2nd . 6.00 Per share Transferred from Profit And loss Account 3.Term Report on Packages Statement of owners Equity (Rupees in Thousands) Share Capital 698.525) _ 789.333.2005 Rs. 2006 Final Dividend for the year ended December 31.646.600 34.

975 ordinary Shares of Rs.772 Statement of owners Equity (Rupees in Thousands) Share Capital Share Premium Fair Value Reserve General Reserve Balance as on December.00 Per share Transferred from Profit And loss Account 3.735 2.325.Term Report on Packages Balance as on December 31.953 789.940) _ _ 2.170.022 ordinary Shares of Rs.829 _ 4.325.476. 31 2007 11.986.672.600) _ (34.333.277) (5.646. 10 Each issued as fully Group B1 733.751 9.666 13.797 (419.948 4. 6.525) 4.948 18.493. 10 Each issued as fully Paid bonus shares Fair value gain during The year Transferred from Profit And loss Account on disposal of Shares of the resource group (TRG) Pakistan Limited & Nestle Pakistan limited Profit for the year Balance as on December.797 (1.006.536 72 MBA 2nd .885.326.101.2005 Rs. 2006 Final Dividend for the year ended December 31.277) (419. 31 2007 6.

893 (912.333 ( continued…) Statements of Owners Equity (Rupees in Thousands) Unappropriated Profit & Loss account Total Balance as on December.797 _ _ (1.797 18.060) _ _ _ _ _ _ _ _ _ 4.326.876.170.825) (195. 31 2007 11.660.702. 31 2008 4.072.006.624) 13. 10 Each issued as fully Paid bonus shares Transferred from Profit And loss Account Fair value loss during The year Loss for the year Balance as on December. 31 2008 110.825) 16.326.375) (195.Term Report on Packages Paid bonus shares Transferred from Profit And loss Account Fair value loss during The year Loss for the year Balance as on December.375) _ 843.022 ordinary Shares of Rs.272.772 _ _ (4.572 Group B1 73 MBA 2nd .326.060 (110.825) _ (1.797) _ (195.795 2.

474.063.536 5.991 1. Surplus / (Deficit) on re-measurement of available For sale financial assets Implement loss transferred to profit & loss account Other comprehensive income for the year Total comprehensive income for the year 2009 4.924 319.455 1.538.793.Term Report on Packages Statement of Comprehensive Income (Rupees in thousands) (Loss) / Profit after taxation Other Comprehensive income.460 Statement of Owners Equity (Rupees in Thousands) Share Capital Share Premium Fair Value Reserve General Reserve Preference Shares/ Convertible Stock Reserve Group B1 74 MBA 2nd .

2008 Equity components of Preference shares/ conVertable stock as referred To in note 72 (net of Transaction cost) Total comprehensive Income for the year Balance on December 31.876.538.875 4.572 1.624) 13.876. 2008 Equity components of Preference shares/ conVertable stock as referred To in note 72 (net of Transaction cost) Total comprehensive Income for the year Balance on December 31.924 5.536 _ _ 843.875 (continued…) Statement of Owners Equity (Rupees in Thousands) Unappropriated (loss) / Profit (195.795 2.875 _ _ 1.272. 2009 843.660.795 2.993 561912 13.825) Total Balances on December 31.605.333 1.063.099 75 23.993 (912. 2009 Group B1 16.460 3.333 _ _ _ _ _ 1.605.Term Report on Packages Balances on December 31.660.605.416.474.907 MBA 2nd .868.

119.787. Surplus / (Deficit) on re-measurement of available For sale financial assets Implement loss transferred to profit & loss account Other comprehensive income for the year 2010 (332. 4.636 Total comprehensive income for the year 3.Term Report on Packages Statement of Comprehensive Income (Rupees in thousands) (Loss) / Profit after taxation Other Comprehensive income.211 Group B1 76 MBA 2nd .425) 4.119.636 .

875 Group B1 77 MBA 2nd .636 _ _ Balance on December 31. 2009 Rs.876.660.993 4.875 Balance on December 31.795 2.605.119.Term Report on Packages Statement of Owners Equity For the year ended 2010 (Rupees in Thousands) Share Capital Share Premium Fair Value Reserve General Reserve Preference Shares/ Convertible Stock Reserve 1. 2010 843. 3.993 561912 13.876.000.548 16.25 per Share _ _ _ 3.681.605.000 _ _ _ _ _ _ Total comprehensive Income or ( loss) for the Year _ _ 4.333 1. 2009 843.333 Transfers from profit & loss account Final dividend for the Year ended December 31.660.795 2.

3.233) (332. 2010 23.868.787.907 (3.099 Total Balances on December Transfers from profit & loss account Final dividend for the Year ended December 31.000.211 261.Term Report on Packages (continued…) Statement of Owners Equity (Rupees in Thousands) Unappropriated (loss) / Profit 3.25 per Share Total comprehensive Income or ( loss) for the Year Balance on December 31.416.425) 3.000) _ (274. 2009 Rs.233) (274.929.441 26.885 Group B1 78 MBA 2nd .

Term Report on Packages Chapter 5 Horizon tal & vertical analysi s Group B1 79 MBA 2nd .

There are two main tools of financial analysis. The computation of percentage and changes in the same item over time is referred to as a trend analysis this spotlights trends and establishes relationships between items that appear on the same row of a comparative statement there by disclosing changes on items in financial statements.e Analysis of income statement. Horizontal Analysis Horizontal as the name shows it is the x axis analysis. It is a useful way of analyzing statements and to convert them into common size statement by expressing absolute rupee amounts into percentages of a base figure. because they will invest in those firms which will give them low risk and high return. Vertical Analysis (Profit and Loss Account) Group B1 80 MBA 2nd . Statements so prepared are called common size statements the analysis facilitates the comparison with prior period and also highlights the relative importance of each item the analysis can be equally useful for inter firm comparison. in financial analysis various ratios and graphs are shown. The income statement thus exhibits expense as a percentage of sales.Term Report on Packages Financial Analysis Financial analysis means that the analysis of the financial statements i. balance sheet etc. Vertical Analysis Vertical as name shows it is y axis analysis of financial statements. Moreover the financial institutions before sanctioning loans also evaluate the solvency of the applicant through financial analysis. and each asset/liability as a percentage of total assets and total liabilities. Which depict the past performance of last 4 or 5 years? The question may arise that what is the benefit of financial analysis? The answer is quite simple that many parties are interested in financial analysis like the investors before making investment in the company see the financial trends of business.

76 100 12.45 -0.89 6.66 74. Group B1 81 MBA 2nd .93 -0.07 -1.14 85.59 -0.33 5.69 -0.31 -2.58 100 14.Term Report on Packages local sales export sales gross sales Less :sales tax and excise duty comission Net sales Cost of sales Gross profit Administrative expenses Distribution and marketing costs Other operating expenses Other operating income Impairment charged on available for sale investment (Loss) / profit from operations Finance costs Investment income (Loss) / profit before tax taxation (Loss) / profit for the year EPS .34 1.38 1.94 83.8 70.basic EPS .04 0 0 2006 % 98.99 -0.83 11.79 0 8.91 41.37 0 0 2007 % 98.58 (2.33 10.16 0 5.39 -0.92 -0.78 -1.87 43.39 -2.89 -7.83 -2.88 -2.28 11.53) 0 2.08 1.73 55. Company is facing net loss in 2008 and 2010.9 10.24 1.32 24.62 6.36 0 2.14 84.91 72.42 4.16 84.28 -1.64 -2.85 12.24 3.57 14.58 0 0 2008 % 95.74 67.57 -1.88 81.36 2.48 78.86 -2.07 0.52 0 0 2009 % 95.49 41.15 0.6 -3.1 85.1 86.58 0 0 Comments: Local sales are continuously decreasing in every year but export sales are increasing.22 100 14.96 -0.54) 4. Operating income increase in 2009 but again decrease in 2010.34 -3.96 -2.57 -3.48 (5.78 4.5 -2.3 -2.87 62.66 100 14.38 -3.diluted 2010 % 94.67 100 14.24 -0.72 2.38 -0.52 34.64 -2. Company faced loss from operations in 2009 and 2010 and also face Loss before tax in 2010.

7 133.3 1620.6 393.4 221.5 152.5 465.8 146.5 2106.4 141.6 278.3 263.8 0.8 154.9 115 119.5 175.9 MBA 2nd .5 77.7 178.1 72.2 270.7 155.6 99.9 90.7 1533.7 379.7 61.7 55.8 279.4 177.3 210.3 100 100 100 77.8 -281.4 236.3 16.7 158.6 23.8 100 100 100 100 100 100 100 128 114 127.9 Net sales Cost of sales Gross profit Adminstrat ive expenses Distabutio n and marketing cost Other operating expenses Other operating income Loss /Profit from operation s Finance costs Investment income Loss 100 /Profit Group B1 100 100 100 94 68.1 161.1 48.8 210.8 221.1 80.15 133.7 -4.Term Report on Packages Local sales Local sales Export sales Total sales Less: sales tax and excise duty commissio n Profit and loss account of horizontal/trend analysis 2006 2007 % 2008 % 2009 % 2010% % 100 116.2 100 100 110 116.4 92.9 209.1 780.8 72.9 82 53.7 173.2 241.8 13.4 175.4 477 183.7 172.3 7.8 232.4 148.8 17.5 4.

65 690.532 363 241 137 180. Horizontal/Trend analysis of balance sheet: 2006 2007 2007 2008 2008 2009 2009 2010 201 0 ASSETS: NON-CURRENT ASSETS Propert y.3 -3. Net profit of company is less as compared base year and in 2008 company has to face loss.115 1.037 7.518 16745 7 623.665 7.155 16190 . 560 MBA 2nd .28 65659 ent .293 9 Intangi ble assets Investm ent propert y Assets Subject to finance lease Capital work-inprogres s Investm ents Group B1 14.5 29842 0 0 0 0 0. Profit from operations is decreasing due increase in distribution and marketing cost and administrative expenses.4 equipm 3.86 596 1.071 10.29 72668 4 7 383.05 48963 3 5 5 175.1 5.7 45.410 74249 6 581.683 10.259 80.337 367.7 .1 6.3 28 12.332 9 5.9 19.4 707 2.20 -2.6 55.3 66.14 3.6 14.57 8 8.775 .36 37756 11.901 0 0 76.195 5.33 58046 5 2 1.293 2 8.16 21018 1.2 33219 0 0 10.Term Report on Packages before tax Taxation 100 Loss 100 /Profit for the year Earning 100 per share 124.6 55.485 88262 83 65.401 753.800 .9 58.08 0.40 8.392 7 219.486 1 94.21 9.42 26. 31.2 70.25 5 5.3 25.646 52212 6 140.5 Comments: Net sales of packages limited are continuously increasing as compared to base year.4 4.42 693 211. Gross profit is continuously decreasing due to increase in cost of sales.33 64928 9 9.58 011 8 3 2.362 144. plant and 0.099 .90 55805 4 174. 17.

3.222 .6 199.476 8.151 4 200. deposits.80 88.0 4.0 455.633 3 84 157.0 58760 03 22 3 141.5 05445 7 85.4 22.652 29047 in-trade .817 1 216.1 s 18 66 Retirem ent 69.288 64294 1.3 173.6 21 21 25117 94.4 64904 7 87 8 133.533 954 .978 92155 .27 77 74585 154.3 1.140 106 .7 6.647 2.049 188 . 31.5 77.0 35.3 870.049 2 Loans.67 33. 8.7 692.102 56777 .461 6 353.837 83874 .7 92021 20 8 233.928 4 .62 59658 9.9 28.26 benefits 5 2 Total Non curren t 19.7 101.143 8.9 221.5 107.5 525. 94.275 3 147.9 185.029 8 174.0 61 623 1.206 38025 3.65 203.09 433 0.216 1 71.5 35. prepayments And other rceivabl es Cash and blank balance Total curren t assets Total curren t and NON curren t assets EQUITY Group B1 195.414 4.752 83019 .523 75303 debts 60 .2 93779 841.8 spares 65 40 9 7 135.950 1 222.172 5 139.173 .260 4 179.402 1 57.669 754 .25 28.4 148.1 29473 02 3 182.0 66588 76 1 186.5 77458 18 6 145.4 40799 4 148.254 1.Term Report on Packages 5 Longterm loans and deposit 180.1 128.804 8 MBA 2nd .52 249.6 715. 39.6 244.9 31638 51 1 249.6 7.987 1 147.8 34350 17 2 427.60 assets 9.6 127.769 9 265.643 116 .4 053 29 2 135.1 1.43 78238 3. advances.041 CURRENT ASSETS: Stores and 485.191 9 . 1.87 155.396 9 213.60 47066 8.1 83647 3 126.4 27.923 82976 .4 Trade 821.9 73454 00 6 143.443 4 AND LIABILITIES: 154.6 3.67 106.62 762 4.261 3 156.03 18138 4. 1.55 458 7 8 161.11 61894 1.1 75163 88 8 202.3 75.7 Stock1.

872 13.500 .7 31150 55 90 9 198.868 41451 .11 190.666 70.13 124.44 15882 8.772 8 LIABILITES 15.000 12.138 6 63.Term Report on Packages CAPITAL AND RESERVES Authori zed 1. 26.8 688.14 .188 CURRENT LIABILITES: Current portion of liabilites against 851 0 0 550.4 474 41 8 196.8472 156.970 132.500 . subscri bed.8 50996 52 1 0 21.34 205.30 73333 4.602 195.500 75 205.7 s .0 Assets 00 Group B1 85 196.91 4.7 120.7 733.8 17. and 105. 95 75 352.336 0.41 66398 6.000 1.7 00035 843.688 13.62 4.4 955.28 261. 7.500 capital .7 .797 2 132.3 55036 2 3.326 17313 .000 Issued.7 50005 4 227.6 149.209 36937 6 119.000 150 Total 13.7 capital 95 35 8 95 Reserve 6.907 5 843.000 150 1.101 .28 167 6 8.30 84346 13.0 12.5 35492 9 64629 .577 4295 132.92 959 9.1 840.8 6.7 26791 88 1 0 18.240 68321 Unappr opriate d profit 6.774 6 4.39 3. 10.500 1.572 150 1.0 14214 9 120.000 150 .27 602 3.631 5 14.21 409 8.27 2.7 843.797 NON-CURRENT Long term finance s Liabilite s against assets subject to finance lease Deferre d liabilitie s Total Non curren t liabilit es 120.8 . 24.000 .956 604 .7 50005 95 4 248.429 4 0 0 153.2 10.455 2.400 3 7.099 4 171.17 97255 0.885 6 6.291 9 0 0 0 122.1 677 73 9 138.2 23.000 6.8 25 16.09 11146 9.0 paid up 698.290 2 5.67 Equity 2.8 18.73 MBA 2nd .

030.0 35.9 5. accured and other liabilitie s Provisio ns for taxatio n Total curren t liabilit es Conting ences and commit ments Total liabiliti es and equity 4 1 1.60 47066 8.421 716 .67 3.819 6 86.873 3 0 75. 857 401 .288 8 1.01 9 31.587 38088 .029 8 0 174. 2.2 262 31 9 0 0 0 0 0 1.476 0 33.99 95934 6 0 242.280.4 78238 4 154.742 86926 .30 86472 6 202.Term Report on Packages subject to finance lease Finance s under mark up arrange mentssecured Derivati on foreign currenc y forward options Creditor s.312.36 1.03 18138 4. 516 0 0 0 0 0 0 0 0 0 0 84.804 8 Comments for trend analysis of balance sheet: Property plants and equipment are decreas in 2008and again increase in2009 and again decrease in2010.0 2.44 3 0 147.693 5 0 104. 39. Cash and bank balances also increase in 2010 as compared to previous years.616 20798 .752 6 97867 11.5 35.0 141.633 3 0 157.9 2.62 762 4. 65. Group B1 MBA 2nd 86 . 438 . Capital work in progress increase in 2010 as compared to previous years. 224 381 0 22.49 6.

Group B1 87 MBA 2nd . trade and other payables also increase. Reserves decrease in 2007 to 2009 but again increase in 2010. In 2007.Term Report on Packages Long term finances decrease but current portion of finances increases. 2008 and 2010 company has faced inappropriate loss and in 2009 has faced inappropriate profit.

Term Report on Packages

Chapter 6

RATIO ANALY SIS

Ratios Analysis:
Ratio analysis involves methods of calculating and interpreting financial ratios to analyze and monitor the firm’s performance.

1. Liquidity ratios: Group B1 88 MBA 2nd

Term Report on Packages The liquidity of a firm is measured by its ability to satisfy its short term obligations as they come due. Liquidity refers to the solvency of the firms over all financial position the ease with which it can pay its bills. a) Net Working Capital: The formula for Net Working Capital is: Net Working Capital = Current Assets – Current Liabilities It is a safety cushion to creditors. A large balance is required when the entity has difficulty on short notice. s years Net working capital(Rs in thousands) 2006 1102998 2007 2872,021 2008 1306,588 2009 6236,000 2010 6113,000

Group B1

89

MBA 2nd

Term Report on Packages Interpretation: It is a safety cushion to creditors. A large balance is required when the entity has difficulty on short notice.Net working capital has increased from 2006 to 2007, but again decrease in 2008,because in 2008 its current liabilites increased as compared to previous years to greater extent.again in 2009 this ratio increased due to incresase in current assets and decrease in current liabilites.company paid its current liabilites and purchase some new current assets which is a good sign for packages.in 2010 current assets are greater than 2009 but current liabilites are also increased due to which this ratio is less than 2009.

b) Current ratio:

This ratio, which is subject to seasonal fluctuations, is used to measure the ability of a firm to meet its current liabilities out of current assets. Generally, the higher the current ratio, the more liquid the firm is considered to be. The formula for Current Ratio is: Current Ratio = Current Assets /Current liabilities

years

2006

2007 2.46

2008

2009 4.58

2010 3.52

Current Ratio(times) 1.48

1.23

Group B1

90

MBA 2nd

but again decrease in 2008. the more liquid the firm is considered to be. Generally.Term Report on Packages Interpretation: This ratio.again in 2009 this ratio increased which means packages is more liquid in 2009. the higher the current ratio. c)Quick or acid test ratio: Acid-test or quick ratio or liquid ratio measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately. is used to measure the ability of a firm to meet its current liabilities out of current assets. A company with a Quick Ratio of less than 1 can not currently pay back its current liabilities. Quick assets include those current assets that presumably can be quickly converted to cash at close to their book values.because in 2008 its current liabilites increased as compared to previous years to greater extent.Current ratio has increased from 2006 to 2007. Group B1 91 MBA 2nd .in 2010 current assets are greater than 2009 but current liabilites are also increased due to which this ratio is less than 2009.

72 2010 1.in 2010 this ratio is again more than 1.43 2008 2009 1.97 0.55 2007 0.in 2009 this ratio again increases which means company has enough assets to pay back its current liabilities. 2) Activity ratio: Activity Ratios are used to determine how quickly various accounts are converted into sales or cash.Term Report on Packages years Quick Ratio (times) 2006 0.57 Interpretation: Quick ratio of packages limited is increasing from 2006 to 2007 but decrease in 2008 which means company can not pay back its liabilites in this year. Group B1 92 MBA 2nd .

02 2009 5. Lower ratio means under-utilization of fixed assets.36 2008 5.52 2010 7. there will be high carrying cost for storing the goods. This ratio measures the efficiency and profit earning capacity of the firm. The formula for inventory turnover is: Inventory turnover= cost of goods sold/average inventory years Inventory Turnover 2006 6.52 b)Fixed Assets Turnover Ratio: Fixed assets turnover ratio is also known as sales to fixed assets ratio.Higher the ratio.Term Report on Packages a) Inventory turnover ratio: If a company is holding a access inventory it means that funds which could be invested else where are being tied up in inventory. greater is the intensive utilization of fixed assets. In addition. Formula of Fixed Assets Turnover Fixed Assets Turnover Ratio = Cost of Sales / Net Fixed Assets Group B1 93 MBA 2nd .14 2007 5. as well as the risk of obsolescence on the other hand. if inventory is too low the company may loose customers because it has run out of merchandise.

01 2008 0. b) Total Asset turnover: It is helpful in evaluating a company’s ability to use its asset efficiently to generate revenue.Term Report on Packages years 2006 Fixed Assets 2.which means packages has to incraese its efficiency to utilize its fixed assets to earn profit.2008 and 2009 again increase in 2010 but this increase is less than 2006.22 Interpretation: Fixed asset turnover ratio is higher in 2006.86 2010 1. The formula for total asset turnover is: Total Asset turnover = Sales / Total Assets years Group B1 2006 2007 2008 94 2009 2010 MBA 2nd .after that it tends to decrease in 2007.92 Turnover Ratio(times) 2007 1.86 2009 0.

Profitability Ratios: An indication of good financial health and how effectively the firm is being managed is the company’s ability to earn a satisfactory profit and return on investment.Term Report on Packages Total Assets 0. the better position of company would be.46 0. 3.32 0.55 Interpretation: Total assets turnover ratio is continuously increasing from 2008 to 2010. The higher the gross profit margin. The formula for gross Profit Margin is: Gross Profit Margin = Gross Profit / Sales Group B1 95 MBA 2nd . a) Gross profit margin: The gross profit margin measures the percentage of each sales rupee remaining after the firm has paid for its goods.46 0.4 Turnover Ratio(times) 0.

If ROA ratio decreases over the year.which is not a good sign for packages limited. it indicates inefficient use of assets.38 2008 1. It is also called “Return on Investment”. b)Return on Assets: The return on total assets (ROA) indicates the efficiency with which management has used its available resources to generate income.86 2009 1.86 2010 3.64 Gross Profit Ratio 14.Term Report on Packages years 2006 2007 11. The formula for ROA is: ROA = Net Income / Average Total Assets Group B1 96 MBA 2nd .34 (%) Interpretation: Gross profit margin is decreasing from 2006 to 2010.

which shows inefficiency of its employees. b) Return on Equity: ROE measures the return on common stockholders’ investment in the firm. Generally. the better off is the owners.Term Report on Packages years 2006 2007 13 2008 11 2009 11 2010 (1) Return on 27 Assets(%) Interpretation: Return on assets ratio is continuously decreasing from 2006 to 2010 . The formula for ROE is: ROE = Earnings available for common stockholders / common stock equity years Group B1 2006 2007 2008 97 2009 2010 MBA 2nd . the higher this return.

23) Interpretation: Return on equity is continuously decreasing from 2006 to 2010.20) 4.8 (1.39 (13.05) (1.which is due to the decrease in net income of packages limited.Term Report on Packages Return on Equity (%) 14. The formula for debt ratio is Debt ratio=Total liabilities/total assets years Debt ratio Group B1 98 MBA 2nd 2006 2007 2008 2009 2010 . It indicates the firm’s long run debt paying ability. 4. Leverage Ratios: a) Debt ratios: It can be defined as how much sufficient our assets are in retrieving the total debts.

03 Interpretation: Debt ratio of packages is increasing from 2006 to 2009 which is good for stockholders of packages.94) 2009 2010 Basic EPS (Rs. In 2009 and 2010 debt ratio again decreased.6 2008 (2.but not for its creditors. a) Earning Per Share: It indicates how much amount firm is earning on its one share.05 Group B1 99 MBA 2nd . to certain accounting values. The formula for EPS is: EPS = (Net income – Preferred Dividends) / Common stock outstandin years 2006 2007 40.32) 48.) 30. Earning per share is useful indicator of the operating performance of the company as well as of the dividends that may be expected. Market Value Ratios: Market ratios relate to the firm’s market value as measured by its current share price.16 (3.Term Report on Packages % 39 45 53.which is not good sign for packages stock holders. 5.5 34 32.

99 2010 (32.Term Report on Packages Interpretation: Earning per share increase in 2007 but decrease in 2008.again increase in 2009. the greater the investor’s confidence. the higher the price earning ratio. In 2010 earning per share again decrease.96 2008 (34.96 2007 58.ss b) Price/Earning Ratio: It measures the amount that investors are willing to pay for each dollar of a firm’s earning.98) 2009 2. The formula for Price Earning Ratio is: Price Earning Ratio = Market Price per share / Earning per share years Price Earning Ratio - 2006 58.65) Group B1 100 MBA 2nd .

41 2007 6. dividend yield ratio is calculated to evaluate the relationship between dividends per share paid and the market value of the shares. Therefore.Term Report on Packages Interpretation : Price to earning ratio is continuously decreasing from 2007 to 2010. Formula of Dividend Yield Ratio: Following formula is used for the calculation of dividend yield ratio: Dividend Yield Ratio = Dividend Per Share / Market Value Per Share years Dividend Yield (%) 2006 2.53 Group B1 101 MBA 2nd .Share holders are real owners of a company and they are interested in real sense in the earnings distributed and paid to them as dividend.which is not a good sign for packages limited.26 2010 2.17 2008 - 2009 2.s c) Dividend Yield Ratio: Dividend yield ratio is the relationship between dividends per share and the market value of the shares.

Term Report on Packages Group B1 102 MBA 2nd .

The external environment has to be scanned by the management for any arising opportunities or any critical threats. Group B1 103 MBA 2nd .Term Report on Packages SWOT Analysis SWOT ANALYSIS STRENGTHS WEAKNESESS THREATS ------------------------------------------------TO BUILD ON TO COVER ON TO CAPTURE TO DEFEND ON OPPORTUNITIES ----------------- Where there is a company in operation it has to work in two kinds of environment i. • • The external environment The internal environment of the company. For a company to avail maximum and avoid maximum.e. The resources of a company constitute its strengths and weaknesses. it has to know what it has to avail and what it has to avoid.

governmental and legal forces • Technological forces • Competitive forces etc Internal factors are. and environmental forces • Political. cultural. By understanding these four aspects of its situation. and weaknesses hinder it. capitalize on golden opportunities. much of which may not be highly relevant. Access to key resources. and discourage potentially devastating threats. Packages’ image. Organizational structure. • Marketing strength of firm • Financial/Accounting resources • Management • Computer information system • Production/operations etc The internal and external situation analysis produces a large amount of information. Human resources. This analysis classifies the internal aspects of Packages Limited as strengths or weaknesses and the external situational factors as opportunities or threats. we can better leverage its strengths. The internal analysis of Packages Limited is done considering the following factors: • • • • • Packages’ culture. • Economic forces • Social. Strengths serve as a foundation for building a competitive advantage. demographic. Internal Analysis The internal analysis is a comprehensive evaluation of the internal environment's potential strengths and weaknesses. 104 MBA 2nd Group B1 . correct its weaknesses.Term Report on Packages External factors are broadly categorized into.

Economy of Sales The SWOT analysis summarizes the internal factors of the firm as a list of strengths and weaknesses. Access to international market Product Line Financial Position Brand Image. Competitors. External Analysis An opportunity is the chance to introduce a new product or service that can generate superior returns. Exclusive contracts. Opportunities can arise when changes occur in the external environment. Market share. Changes in the external environment of Packages Limited are related to the following: • • • • Customers. Many of these changes can be perceived as threats to the market position of existing products and may necessitate a change in product specifications or the development of new products in order for the firm to remain competitive. Social changes. Market trends.Term Report on Packages • Operational efficiency. • • • • • • • • • Operational capacity. 105 MBA 2nd Group B1 . Financial resources.

Growing Sales 4. Largest Packaging Producer 2. Wider Product line Weaknesses Group B1 106 MBA 2nd . Enjoying Economy of Sales 5. Brand Image 6. Political and regulatory environment. which are summarized in the following table: Strengths: 1. Strong Financial Position 7.Term Report on Packages • New technology. Increasing Production Capacity new markets inflation rate Per unit cost is increasing political situation international politics Trade and Terrorism economic structure The SWOT analysis summarizes the external environmental factors as a list of opportunities and threats. Market Share 3. Corporate Culture 8. • • • • • • • • • • Economic environment. Strong Distribution Channel 9.

Centralized System 9. Instability in international politics 7. entry of new and well financed organization in packaging sector 3. Low advertising campaigns 7. Increased demand of Pakistan products in foreign market 9. Domestic Competition. Increasing Production Capacity in existing plant 2.Term Report on Packages 1. Increasing sales by implementing the credit policy strategies 7. Order Fulfillment 6. Building the better and soft strategies regarding Consumer. WTO in 2005 (no quota Restriction) more chances of export 8. Opening new marketing office in foreign countries to improve the marketing campaign 5. Advertising in international media and magazines in increase the market share 6. Poor Record Keeping 8. Huge inventory stock of raw material 3. Pharmaceutical and Cosmetics is a big fish in the pond 10. Pakistan. Expansion though Joint Ventures Threats 1. Low incentives to middle men 5. Trade and Terrorism 8. High inflation rate 4. Tough competition with India and China 2. Instable political situation in county 6. reduction in profits 5. Increasing Demand of Paper Products in EU market and in USA markets 3. Government restrictions on import and tax related decisions 10. Environmental Constraints Opportunities 1. Weak economic structure of Pakistan 9. Employee & Middlemen 4. High rate of employee turnover 2. Increase in the prices of Raw Material Group B1 107 MBA 2nd . Per unit cost is increasing. High Pricing 4.

Term Report on Packages CHAPTER 8 Group B1 Suggestio ns and 108 Recommen MBA 2nd .

Group B1 109 MBA 2nd .  Save time by minimizing the official procedures. People are attracted towards a product with unique features and something that would make the customers feel that they have got their money’s worth.Term Report on Packages “Suggestions and Recommendations”  People are the main asset of a manufacturing firm.so In order to get cometitive advantage and to use its assets and resources efficiently packages has to hire more innovative people externaly.  Packages should have to change its policy to fill its vacancies only by existing employees.  Provide proper training to its employees to make efficient use of its assets.  The company should add more features to their products.  Packages has to resahape its human resource department.  Packages should try to expand the market by exploring new areas.

packages has to put attention for its employees training and development.  Develop proper goals and objectives for every member of team and department. Group B1 110 MBA 2nd . although Consumer Marketing Department is doing so but at a very meager level. by coordinating their marketing efforts. dealers etc.  The company should also focus on direct selling of its products to its customers through online auction or through any other source. Thus the company is advised to take steps towards improving the quality of its products. All the other factors like price. People have a strong faith in this brand name. take advantage of synergy among various communication tools.Term Report on Packages  Incentives should be given to motivate sales and recovery teams at initial stages. “Conclusion” Concluding. Packages is also targeting its consumer product customers through advertising. word of mouth.we also found that people while purchasing for a certain item take great interest in the brand name. They have to increase their advertising expenditures  The company must give more incentives to the dealers and sales officers so that they remain loyal to the company and promote the products.  Consumer Product Division’s more focus should be on electronic media to get competitive advantage over the competitors. advertisement. partly due to its high quality and features and partly due to the brand image that it has created during all these years. otherwise it will lose a lot of potential customers to their competitors. quality. we found that the people are main asset for a firm to use its assets effectively.  The company should take measures to improve the quality of their products. ranking them and choose the best ones.in last some years packages profit is also decreasing due to inefficient use of its resources so. and features. don’t have that much importance during the buying process. and develop more efficient and effective marketing communication programs.  The company should develop systems for identifying opportunities.

Term Report on Packages Refere nces Group B1 111 MBA 2nd .