Professional Documents
Culture Documents
Maple Leaf Internship Report
Maple Leaf Internship Report
ADVISOR
SIR SHAKEEL ASLAM
SUBMITTED BY
Yaser Arshad
CIIT/FA05-BBA-001/LHR
SUBMISSION DATE
September 15, 2008
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
ACKNOWLEDGEMENT
I offer my humblest thanks to ALMIGHTY ALLAH, The most Beneficent and the Most
Considerate and the entire source of all knowledge and wisdom. I thank ALMIGHTY,
ALLAH, who gave me the aptitude to do this project efficiently and successfully. I
offer my humblest respects to the HOLY PROPHET HAZRAT MUHAMMAD (Peace
Be upon Him) who is, forever a torch of guidance and knowledge for humankind as a
whole.
I faced a lot of difficulties during this phase of developing internship report. But Allah
gave me a lot of patience and due to the continuous encouragement of my teachers
and other people concerned; I was able to complete this project.
Its not very easy for me to find the right words to express my gratefulness to our
praiseworthy advisor Mr. Shakeel Aslam, his enthusiastic interest, in time and useful
suggestions, continuous encouragement, vivacious supervision and kind behavior
throughout my internship period.
Apart from my respectable advisor, there are many other people who have been very
helpful to me right from the beginning. I would whole heartedly acknowledge the entire
management of Maple Leaf Cement Factory Limited who provided me this opportunity
to achieve this practical experience under their valuable supervision and helping
suggestions to complete this report.
Id like to mention Mr. Abdul Rauf, Mr. Ilyas, Mr. Ijaz Ahmed, Mr. Khalid Sahrif, Mr.
Omer, and last but not least Ms. Hina Noreen. I also pay my regards to all others whose
names can not be included due to the scarcity of space and time. At the end Id like to
thank Samya Tahir and Bilal Ahmed, my class fellows and my internship colleagues as
well, whose company was a cause of support and motivation, because without naming
them this acknowledgement will be incomplete.
Yaser Arshad
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
1. Executive Summary
The salient features of this report are: Maple Leafs background, its vision, corporate
values and goals. This report focuses its business operations including major areas
as its overall marketing strategies, its production and operations, and its Human
Resource. The Financial Analysis of the firm has been done in detail. The Ratio
Analysis, Common Size Analysis and Index Analysis of the firm are really a
fascinating experience of mine.
This report accentuates the details of my learning and observation at Maple Leaf. It
also includes the actual forms that are used in this organization to carry out basic
business processes. And I am sure that this report will provide you a complete and
clear image of organization.
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
2. Introduction
2.1. Mission Statement:
The Maple Leaf Cement Factory Limited stated mission is to achieve and
then remain as the most progressive and profitable company in Pakistan in
terms of industry standards and stakeholders interests.
The company shall achieve its mission through a continuous process of
having sourced and implemented the best leading edge technology, industry
best practice, and human resource and by conducting its business
professionally and efficiently with responsibility to all its stakeholders and
community.
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
Nationalization:
Under the Economic Reforms Order, all private sector cement plants were nationalized
in 1972 and State Cement Corporation of Pakistan (SCCP) was formed to manage
cement plants. Installed production capacity was substantially expanded during this
period. The capacity of Javedan and Mustehkam were doubled and new plants were
installed at Thatta, Dandot, Kohat, D.G.Khan and Daudkhel. As a result, total production
capacity expanded by 2.45 million tons per annum.
During this period, growth in demand of cement was around 7 percent per annum. New
capacities were not coming up to match the demand. Consequently, Pakistan had to
start importing cement in 1976-77 and continued to import cement till 1994-95.
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
The group also has presence in power generation, and insurance sectors consisting of
a total of seven group companies, all of which are ISO 9002 certified. In 1999, KMLG
entered into a contract with oracle to upgrade all Management Information Systems
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
A) Textiles: this is the core focus of KMLG. The group has 50 years experience in
manufacturing and employs a strategy of diversified marketing and a focus on
customers globally. The group has effective quality control due to the combined
synergies of vertically integrated textile manufacturer.
B) Spinning: Kohinoor Textiles comprises of two spinning divisions located at
Rawalpindi (KTML) and Gujjar Khan (KGM). There are a total of nine units with
151,000 spindles capable of spinning a complete range of coarse and fine count
yarn from natural and man made fibres. In particular, Kohinoor specializes in fine
count yarn for high thread count home textile products. The total production of
yarn is 28,800,000 Lbs per annum. Five units with 85,500 spindles are at
Rawalpindi and four units with 65,500 spindles are at KGM. Both divisions are
modern facilities with state of the art machinery from Europe and Japan.
C) Weaving: Kohinoor Raiwind Mills (KRM) is the weaving division of Kohinoor
Textiles Mills and is situated in Raiwind. Since the companys inception in 1991,
the management of KRM has invested in state of the art technology and
equipment making it one of the most modern weaving plants in the country.
Presently there are 204 wide width air jet looms capable of producing over 25
million linear yards of greige fabric per annum. By the end of 2006 the total
number of looms will increase to 312 with the addition of a third shed. All 204
looms have been supplied by Picanol (Belgium) and are of the following models:
Picanol Omni P800 and Picanol Omni Plus
D) Dyeing and painting: Kohinoor has a state of the art dye house equipped with
European and Japanese technology to pre-treat, dye and print fabric with an
average weight range of 75gsm to 350gsm. The dyeing and printing capacity is
48 million meters per annum and the capacity for pre-treatment and bleaching is
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
History:
Maple leaf Cement Factory Limited was established by the Pakistan Industrial
Development Corporation (PIDC) in 1956. It was later incorporated as Maple Leaf
Factory Limited in April 1960. The company started as a producer of grey Portland
cement, with a wet process plant of 400 tons per day (tpd) clinker capacity installed
with the assistance of the Canadian Government, in 1960 a second wet process plant
Portland cement was installed with a clinker capacity of 600 tpd.
In 1969, a company by the name of White Cement Industries Limited (WCIL) was
formed with a 50 tpd white cement plant.
In 1974, under the PIDC Transfer of Company & Project Ordinance, the management of
two companies, namely MLCFL and WCIL were transferred to the newly established
State Cement Corporation of Pakistan (SCCP), which controlled the entire cement
industry in Pakistan after nationalization.
In 1983 SCCP expanded WCILs white cement plant by adding another unit of the same
capacity parallel to the existing one.
In 1986 SCCP also set up another production unit of grey cement with a capacity of 600
tpd based on wet technology under the name of Pak Cement
Privatization
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
Management
MLCFL is a part of the Kohinoor Maple Leaf Group, one of the largest groups in
Pakistan. It is primarily being run by Mr. Tariq Sayeed Saigol, the son of late Mian
Sayeed Saigol, founder of the Saigol Group. Mr. Tariq S. Saigol is an ex- chairman of
All Pakistan Textile Mills Association. He has also been the Chairman of the
Governments Export Committee as well as a director of SBP and member of the Prime
Ministers Committee of Tariff Reforms, Resource Mobilization, Tax Reforms and Down
Sizing of the government. He is also the architect of Textile Vision 2005.Other senior
management has vast experience in the textile industry. Top management id the hub of
strategic decisions, with middle management playing implementation role.
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
MLCFL manufactures grey ordinary Portland cement for industrial and domestic use.
MLCFL shall achieve its policy through the application of quality management system;
by identifying, understanding, managing, and maintaining a quality system of inter
related quality processes which are structured to comply with the requirements of ISO
9001: 2000 (E) and all applicable regulatory and statutory requirements.
MLCFL shall continually improve the effectiveness of Quality Management System for
the organizations over all performance and efficiency. All the employees of MLCFL
believe in
MLCFL understands that the involvement of people at all levels is equally beneficial for
both the organization and its employees and the effective decision at all functions shall
be based on the analysis of data and information.
MLCFL believes that the suppliers are important part of the organization and play a key
role in the smooth operation of plant.
This policy is issued to clearly indicate the attitude of the company with regard to quality
and customer satisfaction for the long term of MLCFLs competitive position, reputation
and employees satisfaction.
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Figure 1
CFO
Export
Marketing
Finance
HCD
Procureme
nt /
Purchase
Accounts
IT
Marketing
Manager
(1)
Manager
(1)
GM
(1)
AGM /
DGM
(1)
GM
(1)
GM
(1)
AM / SAM
(1)
Dm / SDM
(1)
DM / SDM
(1)
AM / SAM
(1)
AM / SAM
(1)
JE
(1)
C.E.O
C.O.O
D.O.P
C.F.O
G.M.
D.G.M
A.G.M
S.M.
Managers
1
1
1
1
8
2
3
17
15
AM / SAM
(1)
Manager
(2)
JE
(1)
Mgt.
Trainee
(1)
DM / SDM
(3)
DM / SDM
(1)
JO
(1)
AM / SAM
(2)
AM / SAM
(3)
AM / SAM
(1)
Assistants
(2)
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
JO
(2)
JE
(1)
JE
(6)
JO
(1)
Assistants
(2)
11
The Figure 1 shows the organization structure of the KMLG head office, Lahore. At
present there are 105 employees working in the head office.
Empowerment
Maple leaf has centralized operations, major decision making power lies in the hand of
the central head quarters however delegation of authority has been done in such a way
that the senior management has enough power to direct employees without informing
the top management at the central office so as to avoid operation hindrance only .
Strengths:
The company is situated in Daud Khel, district Mianwali. This location is rich with
raw material that is required by the cement industries for the production of
cement.
Maple leaf is operating with a present production capacity of 1.5 mntpa. Further
expansion of 2.0 mntpa is expected in the near future which will make MLFCL,
the third largest capacity wise player after Lucky cement and D.G. Cement.
The company has imported the machinery for dry process from Denmark. The
use of this advance machinery has helped the company produce good quality
cement with much efficiency.
The company is going to import the waste heat recovery plant from Denmark,
which will help the company to cut the power expenditures.
Maple leaf cement factory is the only cement factory that produces both grey
cement and white cement.
It also has developed a niche market by being the only manufacturer of oil well
cement in Pakistan.
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Maple leaf, having a good brand image, has the advantage to charge their
customers at a higher price than the other competitors.
The price of maple leaf cement is high in the international market as compared to
its local competitors who are involved in the exports as well.
The company brand image is very strong in the market, both local and
international.
Maple leaf is an ISO certified company. The company has obtained the ISO 9001
- 9 making it a reliable producer for production of quality products in the
international market.
Maple leaf along with Lucky cement, are the only two companies to obtain the
BIS certification from India.
The maple leaf cement factory compensates its employees, better than all the
other industries.
The basic salary of the company employees is higher than even the salary
package offered in the industry.
Weaknesses:
The location where the cement plant of maple leaf is located is a very remote
area.
Maple leaf faces problems in hiring good quality of employees for the factory
place due to this reason in spite of a good salary package.
The company has been established since 1956. Therefore the technology being
used by the factory, i.e. the production of cement through wet process, is old
and yields low profits and high costs.
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Although, maple leaf is taking steps to convert its wet process plants into dry
process plants, but at present these plants are causing the increase in per bag
cost of the cement.
The cost of freight charges further reduces the retention price of the cement,
hampering the profitability of the company.
The location of the company limits the ability of the company to distribute its
product all over Pakistan.
According to Rizwan Butt, the means of transportation for the company is main
problem at present for the company.
This problem has affected both the local and export sales of the company.
India is a very big market for the cement industry, as there is a construction
boom in the country. But due to the shortages of trucks and the Pakistani train
wagons not meeting the standards of Indian authority, maple leaf is unable to
avail the golden opportunity at its fullest.
The company has borrowed heavy loans from the financiers, further increasing
the debt burden over maple leaf.
Opportunities:
At present the demand for cement in the domestic market is increasing. Maple
leaf is benefiting quite well at present.
If Kala Bagh dam is commissioned, MLFC will be the major beneficiaries in the
industry.
At present, maple leaf along with Lucky cement is the only two cement factories
that have received the BIS certification.
This has given maple leaf a golden opportunity to capture the Indian market with
very less competition.
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The demand of cement outside Pakistan has been increasing rapidly, providing
maple leaf a good chance to explore these markets.
Maple leaf is also exploring new markets for the potential customers of white
cement, which will give maple leaf a competitive edge against the competitors.
The conversion of wet process plants to dry process plants and the shifting of
company from coal based production to waste heat production will cut down the
companys expenses and increase companys retention prices.
Threats:
The company is highly vulnerable to price competition since it faces higher cost
of production per bag.
The rocketing increase in prices of furnace oil, and even 300 % increase in the
price of coal has been affecting badly to companys profitability.
The export to Indian market highly depends on diplomatic relations between the
two countries.
The day after day terrorist attacks and the suicidal bombing have caused the
unrest in the country. Along with creating a sense of non security among the
citizens of Pakistan, these activities have proved to be hazardous to the
manufacturing companies as well. The incident of rocket launcher fired on the
grid station in Mianwali caused a great damage.
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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Political factors
Political factors include government regulations and legal issues and define both formal
and informal rules under which the firms operate. The rule and regulations that the
cement industries follow are as follows:
Tax Policies
o According to the tax memorandum 2008, the cement industries have to
abide by the following rules:
o The tax rates on telephones will be collected at the rate of 10 % of the
amount exceeding Rs. 1000.
o General sales tax is enhanced from 15 % to 16 % including sales tax on
services under the Provincial Sales Tax Ordinance, etc.
o Due to the increase in the general rates of sales tax, the rate sales tax on
the natural gas has been increased from 24 % to 25 %.
o Duty on cement (that includes Portland cement, aluminous cement, slag
cement, super sulphate cement and similar hydraulic cements, whether or
not colored or in the form of clinkers) has been enhanced from Rs. 750 to
Rs. 900 per metric ton.
o The government has put special excise duty of 1 % as well.
o Duty on the services such as goods insurance, fire Insurance, theft
Insurance, theft Insurance, marine Insurance, other Insurance, non-fund
services provided by banking companies or non-banking companies has
been enhanced from 5 % to 10 %.
o The rate of tax for the collection at the import stage for all imports of goods
has been reduced to 2 % from 5 %.
o According to the tax memorandum 2008, the importer will not be taxed at
the importing stage of goods such as mineral fuels, mineral oils and
products of their distillation.
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Employment Laws
The labor policy issued by the Government of Pakistan lays down the
parameters for the growth of trade unionism, the protection of workers' rights,
the settlement of industrial disputes, and the redress of workers' grievances.
The policy also provides for the compliance with international labor standards
ratified by Pakistan. At present, the labor policy as approved in year 2002 is in
force. The minimum wages for unskilled worker is Rs. 2,500. The minimum
threshold of income for taxation of salaried individuals has been enhanced
from Rs. 150,000 to 180,000 per annum.
Environment regulations
At present Pakistan industries follow the Pakistan Environmental Protection Act,
1997.
o The
Pakistan
government
has
now
become
conscious
of
the
environmental pollution.
o It has set some specific laws that all the manufacturing industries have to
follow according to the Pakistan Environmental Protection act, 1997.
Political stability
o The present situation regarding the political stability is negative in
Pakistan.
o This political instability has been in process since the fate full attack of
9/11, 2001.
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Economic factors
Economic factors affect the purchasing power of potential customers and the firms cost
of capital. Following are the factors affecting the macro economy:
Economic growth
o According to the report of UN Economic and Social Commission for Asia
and the Pacific Pakistan maintained its momentum in 2007, slightly more
than the 6.6 % for 2006.
o The manufacturing sector growth continued 8.4 % in 2007, which is
slightly more moderate than 10 % for the year 2006.
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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Figure 2
Inflation rate
million
people
has
CPI index
about
12
10
8
6
2
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
economy
are
still
unsolved.
year
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Interest rates
o The monetary policy of Pakistan is controlled by the state bank of
Pakistan.
o The state bank, in order to control the inflation has taken measures and
tightened up the monetary policies.
o Pakistan has raised its main interest rate by 1 percentage point to 13 % to
help fight inflation.
Figure 3
Exchange rates
The exchange rates of Pakistan with
respect to the U.S. dollar, has declined.
The Pakistani rupee has depreciated
since the proclamation of emergency rule
in November 2007. In other words we can
say that the value of the rupee has fallen
as the time passed by. In figure 3 we can
see the rise in the value of dollar in the
moth of July. Minimum was recorded as Rs. 71.2556 and maximum as Rs. 76.2183
Social factors
Health consciousness
o Health consciousness among the people of Pakistan has been increasing
day by day.
o The citizens of Pakistan are getting aware of their duties in order to
maintain the healthy environment.
o Government is taking several steps in order to educate, how important it is
for the people to live in the healthy environment.
o The government discourages the operation of the industries with in the city
by charging these factories with environmental charges.
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Technological factors
Automation
o This is the era of high competition
o The Pakistani industries not only have to compete among them selves but
with the international market as well.
o Pakistan is steadily automating particularly its development sectors to stir
quality production and ensure skilled management, as it would ensure a
good place for the country in the global competitive market.
o The ERP is being implemented or is in the phase of being implemented in
the cement industry.
Technology incentives
o According to the report issued by the ministry of technology, the
government will invest in various fiscal and non-fiscal incentives to
nurture, develop, and promote the use of IT in organizations, to increase
their efficiency and productivity.
o The strategies focus on promotion of venture capital industry through
incentives, recognition of software development as a priority industry for
financing by the banks and DFIs, creation of investment friendly
environment, and building investors confidence
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COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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4. Marketing
4.1. Market Potential:
Domestic
The demand growth rate of the cement industry in the local market is expected to grow
at the rate of 13 % capacity growth rate. The factors that affect the domestic growth rate
of cement industries are as follows:
Strong GDP growth
The cement industry is highly cyclical in nature and depends largely on the economic
growth of the country. There is a high degree of correlation between the GDP growth
and the growth in cement consumption. Hence, if the GDP growth slows down, so
does the demand for cement. Higher GDP has positive impact on the cement demand.
Increase in the housing demand
According to the report from statistical bureau of Pakistan the housing projects
consume 40 % of the cement demand. Currently 0.3 million houses are built annually
against demand of 0.5 million.
Dams
The construction of the four dams will generate demand of 3.7 million metric tones in
case the construction activities of these dams start. According to the reports the the
Kala Bagh dam (if settled) will generate the maximum demand since it is situated in
highly populous area.
The Development Plans
The Government developmental plans for the infrastructure also help the demand of
cement to grow. The government developmental expenditures count for one third of
the total cement consumption. 60 percent higher Public Sector Development Projects
(PSDP) allocation by the government was on of the reasons of increase in the growth
rate cement consumption in the FY 07 and 08.
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Pakistan has achieved improved access to India after the complete removal of
the 12.5 percent custom duty on Portland cement imports in this country from
January 2007, showing improved export opportunities for Pakistan.
India is further planning to import more cement from Pakistan in order meet its
growing needs due to the boom in the construction industry.
The exports for FY08 have already surpassed the last whole years export of
3.19 million tonnes and are likely to reach to 6.67 million tonnes in 2008.
The targets for exports for 2009 and 2010 are set to be 9.99 million and 10
million tonnes respectively.
Currently, the export demand is expected to be from India along with other
countries like Gulf Cooperation Council (GCC) countries, due to rising oil pricesled economic growth.
More countries like South Africa to make the football stadiums for the World Cup
and Sri Lanka are also expected to approach Pakistani companies for cement
imports.
The operating capacity of cement in FY05 and FY06 was 18 million and 21million
tonnes, which rose to 37 million tonnes by the end of FY07.
The cement manufacturers added eight million tonnes to the capacity and the
total production is expected to be 45 million tonnes by the end of 2010.
It may result in a supply surplus of eleven million, nine million and seven million
tonnes in 2008, 2009 and 2010 respectively.
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is categorized
Figure 4
Product Line
Properties
Price in Rupees*
(Per bag)
357
White Cement
400
flooring.
Maple leaf has developed a niche market for
this specialized product. It is used in the
Low Alkali
390
(Sulphate Resistance
Cement)
375
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335
--
construction projects.
Although it is used as raw material for the
Hydrated lime**
--
* The above prices assumed since the management wasnt willing to disclose the actual price.
**The price of the product is set on the bases of the deal and bargain with the customer.
Maple Leaf
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Figure 5
Dandhot, 1.12%
Kohat, 2.00%
Dew an, 3.00%
Maple Leaf ,
12.55%
Fecto, 3.15%
Cherat, 4.35%
Ask. Wah, 4.66%
D.G.Chakw al,
8.40%
Pakistan, 7.28%
Pakistan, 5.63%
D.G. Chakw al,
5.73%
D.G. Khan, 7.42%
Pioneer, 5.27%
Ask NZP, 5.14%
Al Abbas, 5.07%
Cherat, 3.90%
Fauji, 2.82%
Fecto, 2.14%
Ask Wah, 1.70%
Dew an, 1.63%
Best w ay, 11.17%
Attock, 1.35%
Kohat, 1.07%
Lucky, 28.81%
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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Figure 6
Maturity
Growth
MLFC
Decline
Introduction
At present maple leaf cement factory is at the growth stage. This fact can be justified by
analyzing the sales of the company. Although the company is established since 1956,
but the recent construction boom in Pakistan and all over the world as well has caused
the sales of cement to increase. One of the major reasons for the increase of its sales is
the entrance of maple leaf in the international business. More over the expansion
projects started by the company is another indication, that the company has the
potential for further growth.
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4.4. Distribution:
4.4.1. Market coverage
Local market:
Maple leaf cement factory covers the local market by allocating the distributors their
specific area of sales. The target of the company is to cover the market all over
Pakistan, but its major focus is in covering the maximum of the north zone. The reason
behind is the location of the maple leaf manufacturing plant. The plant is situated at
Daud Khel in Mian Wali. The company has to bear lots of transportation cost for the
south zone, which it has to, at the end add in the price of the cement bag. This will end
up in losing the customer despite of the claim of good quality. More over, due to long
distance and time, the packaging of the cement is affected which in results in increased
number of waste product.
Export market:
Maple leaf exports its major products ordinary Portland cement and white Portland
cement. The major markets of maple leaf are Afghanistan, India, Middle East along with
other countries such as Nepal, Burma, and Srilanka. There are many other countries
that maple leaf is and has already explored such as Nigeria, Vietnam where there is an
increase in demand of cement.
4.4.2. Channel structure:
The following figure 7 shows the channel structures followed by maple leaf at present
for the local sales. There are basically two levels at which the goods are sold to the
customers.
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Figure 7
0-level
Manufacturer
1- level
0 level (export)
Manufacturer
Manufacturer
Industrial Distributor
Industrial Or
Direct customer
Industrial Or Direct
customers
Industrial Or Direct
customers
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COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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Figure 8
Raw Material
Transportation
Manufactured
Transportation
Transportation
Stored in the
Ware House
Distributors
Board on Ship
Customers
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4.4. Pricing:
The pricing of per bag of cement is given by the cartel seated in APCMA. Almost all the
owners of the cement manufacturing plants are member of this association. Depending
on the government regulations, such as increase in taxes, excise duties, fuels and other
expenses, the association decides a price on consensus. A threshold is decided by the
cartel, below which no member of the association is allow to sell its product.
Maple leaf always keeps lead in the market regarding the pricing. It charges more than
the competitors.
4.5. Promotions
4.5.1. Communication Channels:
Maple leaf uses two communication channels to reach their customer.
1. Media
2. Public relations
3. Word of Mouth
1. Media
Maple leaf is using two types of media.
Internet
The company has its own website by the name of its mother company
KMLG. The name of the site is www.KMLG.com
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Step 1:
Raw Materials:
There are basically three main raw materials that are used for the production of cement.
In addition to that, a small proportion of other additives such as silica are also added.
1. Limestone 80%
2. Clay 20%
3. Iron ore
Lime stone and clay are extracted from the same place. Iron ore is bought from a
contractor near Kalabagh.
Step 2:
The raw materials are feeded in separate crushers that break them into smaller
pieces. After that they are stored in separate piles.
Storage area: It is a stacker that provides immediate storage. In case there is a problem
with the crusher, the stock present can be utilized immediately to provide enough
amounts to be used for three days.
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COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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Figure 9
Crushing and
grinding
Lime Stone
Quarrying
Cooling
Clinker storage
Preheating
Rotary Kiln
Cement Grinding
Cement
Dispatching
PS (Pakistani Standards)
BS (British Standards)
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The British Standards that are being followed by Maple Leaf Cement are BS - 8110 &
BS-5750.
TQM
The success of any organization and its ability to outshine competitors depend on the
right mix of quality and quantity. According the management the quality of cement at
Maple Leaf is much higher than the required Pakistani standards. The quality of the
cement is kept at par with international standards since Maple Leaf Cement Factory Ltd
is importing a large chunk of their production to foreign countries such as India and
China. Furthermore quality retention is very important because there is intense
competition in the local market.
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6. Finance
6.1. Ratio Analysis
Current ratio:
Current Assets
Current ratio = ----------------------Current Liabilities
Calculation
Current Ratios
2007
2006
1.1 : 1
1.005 : 1
The value of current ratio has risen slightly from the previous year. The industry median
calculated indicates that attaining the current ratio up to 1.16 is sufficient for the cement
industry to able to meet its obligations. The current ratio of maple leaf is 1.1, which is
almost close to the industrial median. This is a
Figure 10
has
potential
to
pay
back
the
1.4
1.2
1
0.8
cement industry
0.6
maple leaf
0.4
0.2
0
2007
2006
2005
2004
Quick Ratio:
Current Assets - Inventory
Quick Ratio = -------------------------------------Current Liabilities
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Calculation
Quick Ratio
2007
2006
0.98 : 1
0.92 : 1
The calculations above show that the quick ratios have showed improvement with
respect to the previous year. But, comparing the calculations with the industrial median
of 1.08 we realize that the companys potential to pay the obligations has decreased.
However, according to figure 11, which shows the four years comparison between the
cement industry and the maple Figure 11
Quick Ratio comparison of Cement
Industry and maple leaf
1.4
1.2
1
0.8
0.6
0.4
2007.
0.2
0
2007
2006
Cement Industry
2005
2004
maple leaf
Activity Ratios:
Inventory Turn over:
Cost of goods sold
340118
Inventory
369709
365
= 40 days.
9.2
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Calculation
Average age of Inventory
2007
2006
(days)
40
21
The above results show that maple leaf converts its inventory into goods 9.2 times in
the year 2007. Maple leaf had a very bad result for the year 2007. The average age of
inventory in the year 2007 decreased by 100 %. The industrial median of the industry
was also 26 giving a view of bad inventory management of maple leaf. The present
situation i.e. 2007 seems to be unfavorable for the creditors to provide loans to the
company.
However, when we compare the four year inventory turnover rate of maple leaf with the
cement industry as Figure 12
shown in the figure
managing
inventory well.
its
The
50
40
30
20
10
year
2007
is
the
0
2007
2006
Cement industry
2005
2004
Maple leaf
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Calculation
Average collection period
2007
2006
20
18
The average collection period in 2007 has increased to 20 days from 18 days in 2006.
The industrial median of the cement industry in 2007 is 20.07 which make it favorable
condition for the company. But, in fact the company is not able to keep up with its own
policy of 15 days credit policy.
Figure 13
25
20
15
10
well.
5
0
2007
2006
the cement industry
2005
2004
Maple leaf
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2007
2006
0.16
0.3
From the results above we see that in the year 2006, every rupee invested in the total
assets generated 30 paisa where as in the year 2007, it generated only for about 16
paisa showing a decrease of 47 %. The total turn over of the company is lower than the
industrial median as well. The industrial median also shows that the over all industry
earned 27 paisa over every 1 rupee of the total assets.
The four year industrial
analysis
maple
shows
leaf
has
that Figure 14
Comparison of total assets turnover for the
cement industry and maple leaf
been
compared
to
the
0.6
cement industry.
0.5
0.4
assets
of
0.3
0.2
0.1
the
company increased by
0
2007
cement industry
of
the
2006
2005
2004
maple leaf
cement
grinding mill the sales lacked behind by 35 % than the sales in 2006.
Debt Ratios
Debt to total assets ratio
Total liabilities
Debt to total assets ratio = ---------------------------Total assets
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2007
2006
62
60
ratio
The above ratio tells us that in the year 2006, 60 % of the firms assets are financed
with debt, where as in the year 2007, the percentage increased to 62 %. The industrial
median of the cement industry also shows the debt to assets ratio of 60.52. The
debt burden on the company has increased instead of decreasing.
However,
this
Figure 15
doesnt to need
be
some
so
worry
for
the
company at the
moment.
The
of
70
60
50
40
30
20
10
0
2007
2006
2005
2004
cement
cement industry
industry in figure 15, we realize that the position of the company regarding debt
management has been better than the entire industry. The debt on the industry
increased due to the expansion projects that have been started by the company and
also other purposes such as the conversion of wet process plants to dry process plants
and other capital expenditure requirements.
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2007
2006
1.61
1.57
The ratio tells us that the creditor is providing Rs. 1.61 of financing for each Re. 1 being
provided by the share holder. This ratio has increased as well, as compared to the year
2006. In the ratio form, the results for the year 2007 can be stated as 55: 45 and that of
the year 2006 is 51: 49. The creditors always prefer this ratio to be low. the lower the
ratio, the higher the level of the firms financing that is being provided by the share
holders, and larger the creditor cushion in the event of shrinking assets values. The
industrial median for the year 2007, however is 1.79, showing that maple leaf is better
off as compared to the industry.
Figure 16
2.5
the
1.5
requirement of loans
creditors,
for
the
projects
but
expansion
started
by
0.5
0
2007
2006
2005
2004
conversion
cement industry
of
maple leaf
wet dry processes into dry process plants have caused the ratio to increase.
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Calculation
Interest Coverage Ratio
2007
2006
0.6
The ratio of the year 2007 show that earnings of the company before interest and taxes
is 0.6 times greater than its interest payments. In the year 2006, the position of the
company was considerably better. The companys ratio has fallen below the industrial
median. The reason for this down fall is the low operating income earned by the
company.
If we see the industrial
Figure 17
other
companies,
25
of
company
20
15
10
ratio
the
has
also
fallen
0
2007
2006
2005
2004
maple leaf
given to the increase in the interest rates by SBP, to stricken the monetary policy. But
the condition of maple leaf was still worse.
Profitability Ratios:
Gross Profit Margin:
Gross profit
Gross Profit Margin = -------------------Sales
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Calculation
Gross Profit Margin
2007
2006
8.35
19.50
The ratios show that in the year 2006 the companys gross profit was almost 20 paisa
on ever Re. 1. But in the year 2007, the gross profit fell by 57 %, to only 0.08 paisa per
1 rupee of sale. The company has shown very poor performance in this year. The
industrial median is also 19.35, which puts maple leaf in an alarming situation as well.
The reason behind this decrease was the sales of the companies decreased by 35 %
with respect to 2006, but
Figure 18
the
cost
decreased
of
goods
only
by
50
break
the
40
30
20
down
of
10
0
2007
2006
2005
2004
cement industry
maple leaf
from the wet process kiln due to stoppage of dry kiln for the routine maintenance.
If we see the figure 18, the four years comparison shows that the maple leaf has been
earning gross profit below average. We can also see that in 2007 the industrys gross
profit margin has also fallen down. The reason behind this drastic reduction is the
increasing pressure on the cement prices with a perception of over supply due to new
capacities coming on line.
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Calculation
Net Profit Margin
2007
2006
1.13
18.55
In 2007, the company generated 0.013 paisa from every rupee of sale. However, in
2006 the situation was quite good since the company earned 93 % more than in 2007.
The industrial median was also higher than that of the companies. The reason behind
the reduction was the
reduction in sales along Figure 19
comparison of net profit margin of the cement
industry and maple leaf
sales
the
30
25
20
process
of
kiln
due
to
15
10
kiln
for
routine
maintenance, which is
expensive
process
than
and
dry
2007
2006
cement industry
2005
2004
maple leaf
also
because of the break down of the cement grinding mill for a period of more than a
month which restricted the sales volume. This fault even disabled the company to get
full benefit of the improved cement prices in March and April 2007.
The figure 19 shows the comparison of the net margin generated by maple leaf and the
over all industry. The earnings have always been low of maple leaf, which is not a
healthy sign for the company. Even the net profit earned by the over all industry has
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Operating Expense:
Operating Expense
Operating Expense ratio = ----------------------------Sales
Calculation
Operating expense ratio
the
company
2007
2006
4.1
3.5
Figure 20
has
increased by 17 % in 2007.
This increase was due to the
increase in the distribution
costs of the company. How
ever
this
ratio
remained
the
is
able
to
10
8
6
4
2
0
2007
2006
cement industry
2005
2004
maple leaf
expenses
efficiently. The four years comparison of maple leaf with the industry in fig also shows
that the company has controlled its expenses quite well.
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Calculation
E.P.S.
2007
2006
(0.03)
3.16
The earning per share of the company has gone to the negative digits, i.e. 0.03 in the
year 2007. The earning per share in the year 2006 was 3.16. This showed that on each
share of common stock outstanding, the investor earned Rs.3.16 but this earning has
fallen by 99 %, showing negative earning.
The industrial median is also 3.14, for the year 2007. The reason behind the low earning
is the lowering of net income
Figure 21
5
4
shares by 1 % as well.
of
maple
industry
leaf
with
the
shows
that
the
companys
earning
share
always
has
per
-1
2007
been
2006
cement industry
2005
2004
maple leaf
lower than the industrys average earning per share. This is a demotivating factor for the
investors and they will prefer to invest in some other cement industry instead of Maple
leaf which is unfavorable for the company.
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Calculation
Return on total assets
2007
2006
0.18
5.64
This means that, in the year 2006 the company earned 5.64 paisa over every rupee
invested in the assets and in the year 2007 the company earned 0.18 paisa over every
rupee invested in the assets. The present position of the company to earn against its
assets is very bad
The ratio is also below than the industry median. The industrial median for the year
2007 is 2.9 %.
If we compare the four years Figure 21
industrial median with the
35
30
25
20
15
10
0
2007
and
oil
2006
cement industry
2005
2004
maple leaf
prices,
increased production from wet process kiln due to stoppage of dry process kiln for
routine maintenance, and a 40-day unfortunate breakdown of the cement grinding mill,
and high finance cost, the management of the maple leaf should be blamed as well for
the un efficient performance through out the years
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Calculation
Return on equity
2007
2006
0.47
14.51
The return on equity for the year 2006 shows that the investors earned 14.5% on their
investments where as for the year 2007 the investors earned only 0.47%. The industrial
median for the year 2007 was 2.35 which made the company look more miserable.
The reason behind the low
Figure 22
45
40
35
30
25
20
15
10
5
0
2007
2006
2005
2004
cement industry
maple leaf
for routine maintenance, which is expensive than dry process, and high finance cost.
When we look at the over all industry and maple leaf in fig, we see that the maple leafs
performance has been very low as compared to the industry. The management is not
able to generate enough revenues against the investments made by the share holders.
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Assets
The total assets of the maple leaf have increased by 22% since the previous year.
There is an increase of 17% in non-current assets. The property plant and equipment
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7. Human Resource
Maple Leaf is a private organization and therefore the employee pays arent regulated
by any government stipulations. There arent specified strategies or labor laws that
protect the labor wages at the factory. However Maple Leaf considers employee
satisfaction as a major contributor to their success in the market and therefore has
undertaken extensive planning to ensure the employed labor force is happy with there
salary packages. The general employee salary and benefit package includes
Basic Salary
Bonuses
House allowance
Education allowance for employee children who are over 15, currently it is
rupees 100/month however it is subjected to revision shortly.
Although the basic salary figure for factory workers has remained un-disclosed but the
management confirmed that is was slightly above the industrial average which in turn
also helped to reduce the turnover since most workers were aware of the fact that their
salaries alone were better than those offered by industrial competitors.
1. Internal Search
The very first preferred source of recruitment by the company is the internal search. The
policy of the company is to promote from within when ever possible. When ever
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Incase, no candidate from with in the company is eligible for the job according to the job
specifications, or the companys management wishes to look for diversified and variety
of talented candidates, then the company moves towards the external search.
2. External Search
The company does recruitment for the out side candidate through advertisements in the
news papers. This is the most frequently used channel by the company. How ever the
company has begun to advertise on the internet as well on their site www.kmlg.com. A
sample of the job advertisement by the company is shown in Appendix V
The over all selection process takes about one and a half month. Following are the
steps that are followed by maple leaf.
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New employees are given detailed information about the task they have to
perform in their respective department.
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( M.T.O )
I spent three weeks in this department. It was a very good experience working in this
department. I learned a lot of new things about the export process during the stay.
Introduction:
Maple leaf cement factory began exporting the O.P.C. (Ordinary Portland Cement) in
2006. Maple leaf cement factory along with lucky cement factory, have only been the
ones in Pakistan cement industry to acquire the BIS certificate from India for the export
of cement. Maple leaf has market share of 11.4 % in exports markets. Its major markets
are India, Middle East, and Afghanistan along with other countries such as Nepal,
Srilanka, and Nigeria.
EXPORT FINANCING:
The major issue that one has to face in international trade is the lack of trust that exists
when one must put faith in a stranger. Firms engaged in international trade have to trust
someone they may have never seen, who lives in a different country, who speaks a
different language, who abides by (or does not abide by) a different legal system, and
who could be very difficult to track down if he or she defaults on an obligation.
The modes of transactions that are agreed upon on the bases of trust and confidence
are
C.A.D.
Advance payment
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Letter of Credit
C.A.D:
It is an abbreviation for cash against documents. Cash against documents (CAD) is a
payment term for exported goods in which the shipping documents are sent to a bank,
agent, etc., in the country to which the goods are being shipped, and the buyer then
obtains the documents by paying the invoice amount in cash to the bank, agent, etc.
Having the shipping documents enables the buyer to take possession of the goods
when they arrive at their port of destination; this is known as documents against
presentation.
According to the Mr. Ijaz Ahmad, this mode of payment is not practiced by maple leaf
cement factory, since it carries risk on behalf of the company.
Advance Payment:
As the name suggests, advance payment is the mode of payment in which the customer
makes the payment in advance to the company as per the invoice amount. The
company makes the shipment according to the agreement and sends the shipping
documents to the buyer so that he can claim the possession of the goods when they
arrive at the port.
This practice of payment is very profitable to the company, since the company receives
the cash as soon as possible with out any delay.
Letter of Credit:
Letter of Credit is an obligation undertaken by the issuing bank on behalf of the
importer to pay certain sum of money to the order of exporter against the specified and
complied documents.
(Ijaz Ahmad, Assistant manager Export, MLCF)
Buyer
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Issuing bank
Advising bank
Seller (beneficiary)
Export Process:
The flow chart of the general export procedure is shown in figure i and the procedure of
how the company carries out its operations is shown in appendix IV
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Figure i
Export Query
Performa Invoice
LC / Advance
Payment Received
Order Booking
LC Payment realization
Commission
Payment t Agent
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The description of the goods that has been demanded by the customer.
The unit price at which both the parties have come to an agreement.
The mode of shipment by which the goods will reach to the customer.
The mode of payment as per the agreement, whether it is through is through L/C,
advance payment, or through C.A.D.
The address of the banks through which the transaction of the money will take
place and the address of the location where the goods are to be delivered.
The Performa invoice is the given forward to the sales export department who keeps the
record of this invoice.
According to the agreement between the company and the customer, the customer
sends the advance payment or issues the L/C from his respective bank to the bank of
the company. The receiving / advising bank makes intimation with the company as soon
as it receives the advance payment or the L/C in the form of bank advice. This advice is
then put forward to the accounts department who makes a voucher against the advice
and enters it in their data base. The voucher that has been punched by the head office
is then sent to the factory, where the data is entered once again.
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Dispatch:
After the issuance of the customer order form, the data is delivered to the factory via the
system software and after the confirmation the factory dispatches the required order to
its destination.
Ex works
It is also called as ex- factory, and ex mills. This term means that the customer will bear
all the truck and freight charges. No charge will be on the companys behalf as soon as
the order leaves the factory.
FOB
It is also called free on board. The term FOB is commonly used when shipping goods,
to indicate who pays loading and transportation costs, and/or the point at which the
responsibility of the goods transfers from shipper (seller) to the buyer.
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Shipment:
Primary documentation:
A request of E form is then generated by the marketing department to the export
department. It contains the detail of the quantity of goods, the price as per decided,
terms of sale, port of destination, mode of transportation, port of shipment, and load
custom port. The sample of request form that is issued by the company is shown in
appendix.
Along with the issuance of E form, there are certain other primary documents that are
required during the custom clearance.
The primary documents required are as follows:
1. Primary Invoice
2. E-Form
3. Packing List
4. Sales Tax Invoice
5. Undertaking by the Shipper
1. Primary Invoice:
Primary invoice shows the shipping marks, description of goods, total quantity,
unit price and total value, gross and net weight plus certain other details like the
L/C number, type and tenor is prepared wholly from Customs Clearance point of
view and it may not be as per L/C.
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2. E-Form
E-form is the export form that is issued by the bank to the company.
E-form is filled manually or by type writer whish is then signed by an authorized
person / manger.
The filled E form is then taken to the concerned branch of the bank to get it
verified / attested and to obtain a C&F certificate and NOC if required.
A set of E form is completed with 1st (Original), 2nd (Duplicate), 3rd (Triplicate),
4th (Quadruplicate), Bank certificate and NOC if required.
Original and Duplicate E-Forms will be submitted in primary documents.
o The original is sent for the custom clearance.
o The duplicate is kept as a record by the company.
The triplicate and quadruplicate are given to the bank.
o The triplicate is sent to the state bank of Pakistan
o The quadruplicate is kept by the bank as a record.
3. Packing List
The packing list details are sent by the mills. This document shows the way the
product is packed and other details like ;
o Number of pieces in one carton/bag
o Number of cartons/bags
o Weight of one piece both net and gross weights
o The production complete specifications
o Shipping marks printed on cartons and so on.
This packing list is prepared for customs clearance purpose and it may be not exactly as
per L/C. A sample of packing list is shown in appendix.
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The agent clears the consignment and now it is loaded on a carrier which may be
by road/water/air.
Bills of Lading
Shipping Bills
E-Form DUPLICATE
Now the company is ready to prepare commercial documents that are to be submitted
to the bank for the L.C. payment realization.
The commercial documents consist of the documents as per the bank and the L/C
requirements.
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BILLS OF LADING
o It comprises of full set of originals, and copies as required in the credit.
o Shipper is beneficiary, unless otherwise stipulated in the LC.
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Once the commercial documents are complete, they are submitted to the concerned
BANK who onwards endorses the same and sends the documents to consignee/
applicant /importers bank. E-form 2nd and 3rd copies are submitted along with other
commercial documents. 3rd copy is onwards sent to State Bank of Pakistan, thus 4th
copy (quadruplicate is hold by shipper for records).A covering letter by shipper is put
above the commercial documents and submitted to the Bank.
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After the realization of the L/C from the bank and receiving the EPRC from the bank, the
marketing department prepares the rebate documents to claim the rebate on the export
and the payment of the agents commission as well. The rebate cheque is received is
then punched in by the accounts department and fed in the computer software. The
copy of the voucher is further send to the factory as well for the entry of data.
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RF
FE 25
FAPC
ERF
RF
It is known as the running finance facility. This facility is provided to the company for a
specific period of time over a certain amount. According to this facility, the company will
be charged only when the company draws the money from this facility. This charge will
be only against the amount with drawn.
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FAPC
It is the finance against the packing credit. It is another export based loan. The company
can receive this loan against the export of its products. The loan payment is done when
the company receives its payments.
ERF
It is also called as export running finance. It is provided to the company directly from the
State Bank of Pakistan. It is an export based loan. The interest rate that is charged
against this loan is the KIBOR rate.
The other requirement that the bank requires is the promissory notes, and the securities
such as personal guarantee of the owners and the letter of hypothecation which show
the assets that are used to secure the loan for the company.
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Appendices
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Appendix I
Calculations of ratios and Industrial Median:
Current Ratio
Quick Ratio
Inventory
turnover (days)
Accounts
receivable
turnover (days)
Total assets
turnover
MapleLeaf
Cement
1.1
0.98
Lucky
D.G.
Cement
Cement
.85
2.6
0.74
2.56
Activity Ratios
Pioneer
Cement
0.82
0.73
Bestway
Cement
0.48
0.41
Industrial
Median
1.16
1.08
40
23
24.5
19.5
23
26
20
19
21.23
3.49
36.65
19.6
0.16
0.5
0.12
0.36
0.24
0.27
Debt Ratios
Debt to total
assets ratio (%)
Debt to equity
ratio(times)
Interest coverage
Ratio
62
63.6
34
69
74
60.52
1.61
1.75
0.52
2.22
2.85
1.79
0.6
3.55
4.70
0.31
1.05
2.04
Profitability Ratios
Gross Profit
Margin (%)
Net Profit margin
(%)
Operating
expense (%)
Earning Per share
Return on total
assets (%)
Return on equity
(%)
8.35
29.35
31.65
10.2
17.93
19.5
1.13
20.34
25.27
(3)
0.92
8.93
4.17
4.8
4.8
4.7
2.5
4.2
(0.03)
9.67
6.43
0.20
(0.55)
3.14
0.18
10
3.13
1.08
0.22
2.9
0.47
27.23
4.78
4.5
2.02
2.35
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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Appendix II
Common Size Analysis
Common Size Analysis of Balance Sheet
2007
2006
(RUPEES IN THOUSADS)
18.2
19.01
1.2
38.4
18.4
16
5.1
39.5
1.06
36.6
1.1
41.1
0.06
2.9
0.4
0.02
3.8
0.06
45.6
0.02
5.1
0.05
46.7
Non-current liabilities
Loans from related parties
Long term loans and finances
Liabilities against assets subject to finance
lease
Lease finance advances and accrued interest
thereon
Long term deposits
Deferred taxation
Employees' compensated absences
Current liabilities
Current portion of :
- redeemable capital
- long term loans and finances
- liabilities against assets subject to finance
lease
Short term finances
Trade and other payables
Accrued profit and interest / mark-up
Taxation net
Dividends
7.6
0.06
2.8
0.02
3.4
3.1
1.6
0.2
3.9
3.9
1.5
0.2
0.3
16.02
100
13.8
100
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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ASSETS
2007
2006
(RUPESS IN THOUSANDS)
Non-Current Assets
Property, plant and equipment
Intangible assets
Investments
Loans to employees
Deposits and prepayments
82.5
0.02
84.04
1.9
0.04
0.08
86.08
0.03
0.2
82.7
Current assets
Stores, spares and loose tools
Stock-in-trade
Trade debts - unsecured considered good
Fair value derivative financial instruments
Loans and advances
Investments
Deposits & short term prepayment
Accrued profit
Sales tax, customs and excise duty
Due from gratuity fund trust
Other receivables
Taxation net
Cash and bank balances
8.6
1.6
0.8
1.03
0.4
4.03
0.07
0.002
0.2
0.04
0.005
0.06
0.5
17.3
100
9.7
1.04
0.9
1.6
0.04
0.003
0.2
0.05
0.5
13.9
100
100
91.6
8.4
1.8
1.9
0.49
4.2
4.2
1.2
5.3
9.1
3.8
2006
(RUPESS IN THOUSANDS)
100
62.4
37.6
1.05
0.4
2.06
3.5
34.1
0.5
34.6
6
28.6
0.3
46.5
4.9
1.1
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
0.5
9.6
10.1
18.6
86
Appendix III
Index Analysis
Index Analysis of Balance Sheet
2008
2006
(RUPEES IN THOUSADS)
121.2
145.5
27.9
119.0
100
100
100
100
108.99
2192.4
100
100
916.67
100
90.76
92.38
128.7
119.55
100
100
100
100
332.85
309.26
100
100
84.2
95.6
135.67
99.9
100
100
100
100
100
141.8
122.42
100
100
Non-current liabilities
Loans from related parties
Long term loans and finances
Liabilities against assets subject to finance
lease
Lease finance advances and accrued interest
thereon
Long term deposits
Deferred taxation
Employees' compensated absences
Current liabilities
Current portion of :
- redeemable capital
- long term loans and finances
- liabilities against assets subject to finance
lease
Short term finances
Trade and other payables
Accrued profit and interest / mark-up
Taxation net
Dividends
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
87
2006
(RUPESS IN THOUSANDS)
Non-Current Assets
Property, plant and equipment
Intangible assets
Investments
Loans to employees
Deposits and prepayments
Current assets
Stores, spares and loose tools
Stock-in-trade
Trade debts - unsecured considered good
Fair value derivative financial instruments
Loans and advances
Investments
Deposits & short term prepayment
Accrued profit
Sales tax, customs and excise duty
Due from gratuity fund trust
Other receivables
Taxation net
Cash and bank balances
120.15
100
100
100
100
100
100
89.4
271.3
117.6
109.01
183.98
119.04
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
28.58
210.2
71.9
109.05
12.7
122.2
152.1
122.42
2006
(RUPESS IN THOUSANDS)
100
100
100
100
100
100
100
100
100
100
100
100
Finance cost
(Loss) / profit before taxation
64.99
95.5
14.4
111.3
329.28
15.565
77.55
7.963
162.06
10.04
99.26
8.56
Taxation
Current
Deferred
33.2
31.55
31.6
100
100
100
3.969
100
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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Appendix IV
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
89
Appendix V
Trainee Engineers Required in Maple Leaf Cement Factory Ltd-Lahore-Pakistan
TRAINEE ENGINEERS
JOB RESPONSIBILITIES & CHALLENGES
Successful candidates will be provided an opportunity to develop their professional
career through an extensive training program designed to meet the objectives of the
organization. The position is based at our plant located in Iskanderabad, District
Mianwali. Performance of the individuals shall be evaluated during the training period on
the basis of initiative, capability to accept challenges, devotion to work, communication
skills,
planning
and
organizing
capabilities.
JOB REQUIREMENTS
* Bachelors degree in Engineering from UGC recognized institutions.
* Registered with Pakistan Engineering Council.
* Age maximum 25 years.
TRAINING PERIOD & EMOLUMENTS
Training period will be one year. During training a fixed stipend of Rs 20,000 per month
with free bachelor accommodation and medical facilities will be provided by the
company. Depending on the availability of vacancies, trainee engineers showing
outstanding performance may be offered employment in regular grade on completion of
training.
If you fulfill the above mentioned criteria and are interested to develop your career in the
cement industry then send your CV at: hr_mlcfl@kmlg.com latest by 30 April 2007.
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
90
Book References
Philip Kotler, Kevin Lane Keller, 12th edition, Marketing Management, Prentice Hall
Jan R. Williams, Susan F. Haka, Mark S. Bettner, 13th edition, Financial & managerial
accounting, Mc Graw Hill / Irwin
Annual report 2007, Maple Leaf Cement Factory Limited, Kohinoor Maple Leaf Group
Prospectus, Public subscription on 18 & 19 July 2002, Maple Leaf Cement Factory,
Kohinoor Maple Leaf Group, Puma Art Publishers
Electronic References
www.kmlg.com
www.dgcement.com/
www.pioneercement.com/
www.bestwaycement.com/
www.luckycement.com/
www.iptu.co.uk/content/pakistan_employment_law.asp
www.unescap.org
www.defence.pk/forums/economy-development
www.cia.gov
www.iht.com/articles/ap/2008/07/29/business/AS-Pakistan-Interest-Rates.php
www.thenews.com.pk/daily_detail.asp?id=123450
www.pakistan.gov.pk
www.probertencyclopaedia.com
www.thepost.com.pk
www.pwc.com/pk
COMSATS Institute of Information and Technology, Jinnah campus; Off Raiwind Road Lahore
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