Shezan International Limited Financial Report

Name of Organization: Shezan International Limited
Prepared By: Haider Ali
Student ID: MC100200411
Session: 2010-2012
Submission Date: 13-01-2012
University: Virtual University of Pakistan
Virtual University Of Pakistan

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“I dedicate my work & efforts first of all to Almighty Allah and His
beloved Prophet (P.B.U.H) who teaches us and enables us to stand
where we are. My Parents with dedication, love and gratitude without
whom caring support it would not have been”

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Acknowledgement
I would like to pay my praises and humblest thanks to al-mighty Allah, the most merciful and
beneficiate of all, who give me a opportunity to prove my abilities in front of my respected teaches and
beloved college the great Hailey College of Commerce, University of the Punjab. I also want to thanks
all of my teachers like
Prof. Mr. Naimatullah Abid, Mr. Muzaffar-ul-Haq Hashmi, Khalil Ahmad Rao, Prof. Shahid A Zia ,
Prof. Altaf Hussain and other all teachers that deliver the lecture online me to start my life as a
successful person and as a good Pakistani. I am again grateful for the support and dedicated assistance
of great guidance. In other hand I also thanks to Mr. Rehman Sarwar (Manager of accounts and
finance), Mr. Khurram babar (Assistant accountant), Mr. Muhammad Babar and Mr. Muhammad
shahzad (Accounts Assistant), Mr. Iftikhar Ahmad (Assistant Manager) and specially thanks Mr..Faisal
Ahmad Nisar FCA (chief financial officer) who always guide me and encourage me to express my
professional and inter personal abilities. I found shezan international limited as a valuable asset for me
and I have gained a lot from here. I am very thankful to the staff member of shezan for their kindness
and cooperation. I am not able to complete my report without their guidance and support beside that, I
learnt much more from them. I would like to state again the acknowledgement of my debt to them.
At home, i want to acknowledge the support of my ideal and so lovely my parents and my sweet family
who always encourage me and support me at any aspect which i need. I hundred much thank ALLAH to
give me so lovely teachers, family, friends and all of my supporters.

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Executive Summary
In summarized form shezan international limited is a registered and certified company. This report will begin
with a brief introduction and history of shezan international limited. The main objectives of this company is to
set up an industrial understanding for manufacture of juices, squashes, syrups, jams pickles, and preserves from
fruits and vegetables. Actually this company is established with the mission to provide the highest quality fruit
and vegetable related juices and products to retail and food services customers. In my report I have explained
about the company information and range of both types of products offered by the shezan such as local
consumer products and exportable products. The important factor in report is analysis of business financial
statements, techniques have been used to analyze financial statements in tabular and graphical forms are
financial ratio, Horizontal Analysis and common size analysis. SWOT analysis is also the part of my internship
report. I spent my golden time in this company. I worked their as asst. Accountant and found that it has a
systematic model which has each and every thing in its record. So company complies with all international
accounting rules. In shezan no new advanced accounting software is used instead, it uses the old accounting
software named as FoxPro. I am so glade that I spent my time for apply my knowledge and to improve & clear
my concepts and interpersonal skills. The main thing that i found in this firm is cooperative and hardworking
staffs that always help me whenever I have any query about any matter particularly about accounting concepts.
Now I want to explain what I get form this firm. 1 st of all is that i was quite fresh as market aspects because it
was my first experience of job. First week, I was very upset and was feeling hesitate to do anything after than i
control myself and try to be normal. During my internship period of seven week the skills I have acquired and
work done by me includes filing of documents and vouchers, understanding, checking and preparation of cash
vouchers, bank vouchers journal vouchers, payable vouchers and petty cash vouchers. Knowledge about sales
tax and withholding tax, preparation, calculations and checking of payrolls, understanding and checking of load
report and gate pass, making payments to parties through cheques and most important one is the bank
reconciliation are the part of skills and knowledge which I have obtained during my internship.

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Table of Contents
Contents Page Numbers
Introduction of the Organization…………………………………………..………………9

Overview of the Organization………………………………………………..……..10
Historical Overview …………………………………………. ……………………...….10
Mission/vision statement………………………………………………………………..11
Hierarchy Chart Management…..………………………………………………………12
Hierarchy Chart Production………………………………….………………………..….13
Business Volume………………………………………………………………………….14
Share Capital……………………………………………………………………………...14
Product Range ……………………………………………………………………………15
Product line………………………………………………………………………………...16
Competitors………………………………………………………………………………..17
Brief Introduction of all the Department…………………………………………………17
Plan of your Internship Program……..…………………..………………..……………….18

Comment on the organization structure………………………………………………………19
Plan for internship program…………………………………………………………………….20
Skill acquired by Training Program……………………………………………………………20
Balance Sheet as 30 June 2015…….………………………………………..………………..N/A
Profit & Loss Account for 30 June 2015…………………………..…………………………..N/A
Cash Flow Statement for 30 June 2015……………………………………………………….N/A
Notes to the financial statement for 2015……………………………………………………..N/A
Balance Sheet as 30 June 2013&2014……………………………………………………….N/A
Profit & Loss Account for 30 June 2013&2014…………………………………………….....N/A
Cash Flow Statement for 30 June 2013&2014……………………………………………….N/A
Notes to the financial statement for 2013&14………………………………………………..N/A

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Ratio Analysis……………………………………………………………………...……….....25
SWOT Analysis………………………………………………………………………………..43
Future Prospects of the Organization…………………………….…………………….…..46
Conclusion…………………………………………………………………….……………….47
Recommendations…………………………………………………………..........................48
References & Sources Used………………. ……………………….………………………49
Appendix………………………………………………………………………..……………..50
Total pages------------------------------------------------------------------------------------------------80

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Introduction of The Organization
Shezan International Limited is a Private Limited Company, with the main objective tossed up an
industrial undertaking for manufacturing of juices, squashes, sherbets, jams, pickles and preserves from
fruits and vegetables. Shezan International Limited was conceived as a joint venture by the Shah Nawaz
Group of Pakistan and Alliance Industrial Development Corporation of U.S.A. The agricultural
background of the Pakistani sponsors induced them to establish this agro-based industry. Taking
advantage of abundance of fruits available in Pakistan and the advanced technology provided by the
American partners, Shezan became a pioneer in the field of converting fruits into pulps, concentrates
and juices. Today Shezan is the largest food processing unit having developed and installed the capacity
to meet the country's local as well as export needs.
In 1981 the company extended its operations by setting up another unit in Karachi to cater the needs of
Sindh Province and export market. In 1983, a new bottle filling plant was added to the Lahore facilities
increasing the capacity to four fold. In 1987 Tetra Brik plant was commissioned in the Karachi.
Shezan International Limited was converted into a Public Company in 1989 and since then it has been
listed on the Lahore and Karachi Stock Exchanges.

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Shezan International Limited is one of the pioneer companies in processed foods and citrus juices.
Shezan International Limited was setup in 1964 as a joint venture of Shahnawaz Group of Pakistan and
Alliance Industrial Development Corporation of USA. In 1971, AIDC group sold their shares to
Shahnawaz Group, who converted Shezan International Limited to Public Company in 1988, and since
it has been listed on Karachi & Lahore stock exchanges. Hattar Fruit Products Limited was setup in
Hattar Industrial State in N.W.F.P. as wholly owned subsidiary of Shezan International Limited in 1990
to carry out the similar operations as that of Shezan International Limited.
As requested by Rafhan Best Foods Limited, we carried out a Due Diligence Review in respect of
acquisition of 51% shares of Shezan International Limited. The purpose of our report is to investigate
the affairs of Shezan International Limited with the objective of highlighting operational facilities,
marketing strategies, inventory management, financial structure, strengths, shortcomings and future
prospects of the company. Accordingly, we did not carry out an audit of the company’s financial
statements and thus no opinion is expressed thereon.
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Historical Overview
hezan Company was incorporated on May 13, 1964 as a private limited company, with the objectives as
set out in the Memorandum of Association in general and in particular to set up an industrial
understanding for manufacture of juices, squashes, sherbets, jams pickles and preserves from fruits and
vegetables.
Shezan International Limited was conceived as a joint venture by the Shahnawaz Group of Pakistan and
Alliance Industrial Development Corporation of U.S.A in1964. The agriculture background of the
Pakistani sponsors induced them to establish this agro-based industry. Taking advantages of abundance
of fruits available in Pakistan, and the advanced technology provided by the American partners, Shezan
became pioneers in the field of converting fruits into pulps, concentrates and juices. Today Shezan is
the largest food processing unit having developed and installed the capacity to meet the country’s and
export needs.
In 1971 the Shahnawaz Group purchased all the shares of Alliance Industrial Development Corporation
with the permission of the Pakistan Government. The Company has since shown sustained growth in
both the domestic and exports fields. The Company has been steadily expanding its production capacity
over the years. In 1980-81 a separate unit was installed in Karachi which now caters for Karachi, Sindh
and export demand. A new bottle filling plant was set up in1983 in Lahore unit increased the capacity

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five-fold. An independent Tetra Brick Plant was commissioned in 1987 making us the leading
manufactures with comprehensive range of production in the fruit processing field in Pakistan.
In the year 1990 it was decided to install a juice factory at the Hattar industrial estate in North West
Frontier Province of Pakistan. In order to take advantage of the government incentive new wholly
owned subsidiary of Shezan International Limited was incorporated as Hattar Fruit Products Limited
which was later merged into the parent company. Complete bottling plant locally manufactured along
with four lines of Tetra Pak was installed, three are filling 250 ml juices and one line is for 1000 ml
packs. In all respects the subsidiary is now a complete unit and is manufacturing the complete range of
Shezan products except for pickles and canned products.
Organizational Management Hierarchy Chart of Shezan International Limited
Chairman
Chief Exective
Company Secretary
Director Director Marketing Supply Chain Director HR

Production Director Finance Manager
Production Promotions Marketing Purchases S-Accounts Assistant

Manager Manager Manager Manager Manager Manager

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Production Distribution Regional Supply Chain Assistant
Officer Manager Sales manger Department Manager
G.M. Internal Audit
Supervisor Forecasting Area Sales

Manager Manager
Corporate Affairs
Sales Officer
Production Hierarchy Chart of Shezan International limited
Rasheed Javed
Director. Production
Production Manager
Bottling Tetra Pak Blending Electric Boiler
Consumer Section Section Workshop Section

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Supervisor Supervisor Supervisor Supervisor Boiler Work Boiler
Shop
Asst. Sup Supervisor Asstant Boiler

Supervisor Attendant
Asst. Supervisor
Business Volume
The business volume of the Shezan international limited is growing rapidly because export is continue
to growing rapidly the significant development during the year was the historical performance of the
external sector export registered a growth of 28% during the year compare to the same period last year
crossing the $20 billion mark for the first time and growth of external reserves also touched a historical
high of $17.1 billion during the year .looking forward Shezan will achieve the sale growth in
production capacity of juice products in All pure 250 or 1000 ml , Twist 250 ml and increase cola
Production category.
Share Capital.
Share position of company is constant at least two or three years. There is no increase or decrease
in the share. The major share holder his owner of the company.

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Rs. in ‘000’
Nominal Share Capital
10,000,000 ordinary shares of Rs. 10 each 100,000
Issued share capital
237,500 ordinary shares fully paid in cash 2,375
5,762,500 ordinary shares issued as fully paid up bonus shares
57,625
6,000,000 ordinary shares taken up to June 30, 2011 _________
60,000
Product Range
Shezan is producing a variety of quality products. Shezan is largely considered as market leader in fruit
and vegetable processing industry. Shezan has an edge over other with its own fruit farms. Currently
Shezan is giving tough time to other fruit juice manufacturers due to its quality and huge export volume
as well as capturing local fruit juice market where it has competition with Nestle and Haleeb.
Products can be divided into the following
Types of Products
Local Consumer Exports

Products
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Product Lines:
The company started its business mainly from the juices as pioneer in juices in Pakistan with the
passage of time by the increasing demand of its products, it introduces various type of food products
and sustained their standard accordingly .Shezan is mainly manufacturing and dealing following line of
products
Following are the major products that Shezan is producing currently:
1- All Pure 250 ML
2. All Pure 1000 ML
3- Bottles Juice 240 ML
3- Juices Pack 250 ML

4- Twist 250 Ml
5- Syrups
6- Ketchup
7- Jams
8- Vinegar
9- Quench
10- Squashes
11- Mango Nectar
12- Pickles
13- Ispagho
14 - NR-Bottles

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15- Shezan salt
16- Non-Returnable Juice
17- Garden Peas 30c
18- Fruits 30c
19- Sweet Corn 30c

20- Slim Pack Juice 1000 Ml
New Products launched in 2010
21- Speed Energy Drink
22- Shezan cola (Pet)
23- Sangam 200 ml
Competitors:
Shezan is concerned many competitors but Nestle is only a major competitor of Shezan. But Shezan
new introduce of twist, Allpure, speed and Cola in the market. These new product increase the value of
shezan Product & value. These new Product decrease the value of other company product.
Brief Introduction of All the Departments:
Accounts Department:

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The Accounting System of the company is computerizes. A few reports are generated by using
Spreadsheets; other wise software is used for the accounting purposes
Marketing Department:
Shezan International limited is a joint venture firm and 90% of its production export to USA. But now
CEO has decided to expand its marketing throughout the world like UK, CANADA, and JAPAN etc
Store Department:
Store is responsible for the storage of goods that is difference is sugar, empty bottles, board cartons,
sundry store etc.
Processing Department:
Processing department is help to complete the process working in process to finish good in time.
Quality Department:
Shezan international Limited is knows for his quality of product. It has huge quality department that
hired most experienced persons from the market which checks the quality of product to meet the
customer’s requirements and expectations.
Research and Development Department:
Shezan is continuous improvements in the product quality, brand positioning and communication
according to the changing requirement policy Research and development department of Shezan ensures
that flavor and freshness is never compromised.
Shipping Department:

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Shipping Department in addition to other responsibility looks after the storage of finished goods, which
include bottled juices and consumer products. Besides finished products empty bottles are also stored
and managed by shipping department.
Shipping Department has three locations. Shipping hall and Shipping yard lay inside the factory
premises,
Comments On the Organizational Structure:
In organization the employees are working in departments based on what are doing.
Processing department
Quality department
Export department
These structure save the money increase development of sale of organization.
PLAN OF INTERNSHIP PROGRAM:
Brief introduction Of the Branch Under Study
Shezan International limited 56Bund Road Lahore Head office of Shezan near Chowk Yateem Kana.
I am my internship in Head office of Shezan International limited 56_Bund road Lahore.
The Shezan Head office which handle all the accounts, marketing, finance and all other necessary
things. Accounts, marketing, Export and cost departments are Separate department. They perform his
duty throw his department in charge helps. Head office control all the transactions and provide all
necessary things for production unit and all salary and wages are also accounted in main office. They
also control the depot of Multan, Faisalabad & Islamabad worker salary control throw head office.
My Internships start in Shezan international limited 56_Bund road Lahore from 15 July, 2011 to 05
September, 2011.

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Name of department & Time Spent in This Department
Sr. No. Start End Department Period
1 15 July 2011 29 Aug 2011 Account 46
2 30 Aug 2011 31 Aug 2011 Shipping 2
3 01 Sep 2011 03 Sep 2011 Marketing 3
4 04 Sep 2011 05 Sep 2011 MSD 2
Total 53
Name of Department Which Training Program Complete.
Skills Acquired During the Internship Week
1st Week skills acquired
In the 1st week I was upset due to new place, new society and new environment etc. First day
of my internship I was much confused because it was my first experience in a company as to enter in
practical life. So 1st week spent in keeping and understanding the rules and regulation of the company.
The thing that I learn is that I make sure regular and timely arriving in the office. The work which I
actually have done in this week is to arrange and keeping documents in files in proper ways. 2nd things
I have learned that is petty cash vouchers and their use and application in business and how to prepare
these vouchers. I have worked on 5 files of petty cash vouchers. The work which is assigned to me is
that to check the calculation of each voucher by adding up the amount of each support attached to each
petty cash vouchers and find difference if any in supports attached and the total amount of petty cash
voucher.

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2nd Week Skills Acquired
In this week I came to know about different types of vouchers used by the company. These
vouchers include
Cash vouchers
Bank receipt vouchers
Bank payment vouchers
Payable vouchers
Journal vouchers
Cash Vouchers
There are two types of cash vouchers. First one is cash payment vouchers (CPV) which is used to
record any payment made from cash in hand and other one is cash receipt vouchers (CRV) which is
used to record any cash received by the company and currently kept in cash in hand.
Bank Receipt Vouchers
Bank payment voucher or BPV is used to record payment made by the company from its bank
accounts. Shezan international limited have several banks account but only one kind of voucher is
used for recording bank payments. In BPV the related account becomes debit to which the payment
is made and particular bank account becomes credit. Pink color BPV is used by the shezan.
Bank Payment Vouchers

Bank receipt voucher or BRV is used to record any amount received and deposited by the company
in any of his bank accounts. Shezan international limited have several banks accounts but only one
kind of voucher is used for recording bank payments.
Green color bank received voucher is used by shezan. Etc. it also requires signatures of many
officers as well.
Payable Vouchers
Payable vouchers are used to record the procurement / purchases. Shezan international limited
maintains the payable vouchers to record the purchases made by the company on credit basis.
Journal Vouchers
The journal voucher of JV is used to record any transaction that is other then a CRV, or a BPV,
meaning that is used for accruals, prepayments and other transactions of such nature. During this

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week I understood different type of vouchers used by the company and their usage and purpose of
preparation and who is responsible for the preparation of this voucher.
The job which is assigned to me is to arrange all of these vouchers in files chronologically. Keeping
vouchers in files I also prepare some of these vouchers by using the software used by the shezan which
is Fox pro. Bank voucher is prepared by using the Software that is Oracle Developers.
3rd Week Skills Acquired

In this week I have worked on withholding tax (tax deducted at source) and sale tax. This week
was no too much knowledgeable for me because I have short time to understand about it. It
requires practice of about two to three months but in a single week and learned as much as
possible for me. The skill that I have acquired during this week is how to submit the withholding
tax online to FBR.How to check the advance taxes paid to FBR and create e-payments for direct
taxes, creation of payment slip of direct taxes.
After the skill I have acquired is to how sales tax is submitted to FBR but I have no much
understanding about it because there is no practice of doing this due to shortage of time and sales
tax officers time shortage but I have some understanding about it. Sale tax is paid to FBR through
NBP within 7 days.
4th & Week Acquired Skills

During this two week I have worked with assistant accountant Mr. Khuram Babar who handled the
payrolls of all employees whether working in Lahore, Hattar and Karachi. In this week the skill I
have acquired is to prepare payroll and checking the calculations of salaries and rate applied to
each employee and checking their attendance card and registered and also checking their overtime
slips. A given format of salary is given to me on excel sheet and my job is to enter the data in
excel sheet by using attendance card of each employee and then calculate their salary by using
calculator. These two weeks were very busy for me. I also have prepared checks of salaries and
also calculated the bonus that was given to each employee on Eid.
Payment of salary: Attendance of permanent and contract staff is punched into the computer
manually by the accounts assistant and salary is automatically by the computer. A print is taken
and account officer checks it. It is then signed by GM Finance and Executive Director. A cheque
of total amount of salary is prepared. Amounts below Rs.15, 000 are paid in cash and equal and
above Rs. 15000 are sent to bank (UBL A/C NO. 3829-3) with list of account numbers of

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employees to be credited. All deposit slips are then sent to cashier who delivers them to relevant
employees.
5th Week Acquired Skills
6th week I have spent in sale department by the order of account manager. During this week I
learned there about the sale of the shezan. I worked with sale manager and he told me about load
report used by the company. Whole week I have worked on load report. My job is to checking the
total and making calculation and checking signatures. In shezan a number of load reports are
prepared on daily basis. Now I would like to brief you about the load report. What is load report?
Actually it is a report which is prepared when the stock for sale is loaded to vain or vehicle. This
report contains the name of sales man, drivers and loader.
It contains the detail of the finished goods loaded in vehicle for sale. Actually I have worked on
shezan bottle juice load report. Specially mango juice. Following documents are also a part of
this report such as Cash memo, debit memo, credit memo, shipping receipt slip and sale invoices.
Actually this week was not too much knowledgeable for me because I just worked on load
reports daily checks the load reports there calculation and checking all documents attached with
them and making some correction and working etc.

During the last week of my internship the skill which I have acquired is most beneficially for me in
practical life which is bank reconciliation statement. For reconciling the bank statement with general
ledger first of all we take the bank statement whether in hard copy or soft copy through online.
Actually in shezan bank reconciliation is done at the end of the month. Now I would like to briefly
explain the how the bank reconciliation is done. First of all we take the bank statement and reconcile
it with general ledger and find the amounts that are not matched after this we prepare the bank
reconciliation statement as given below format
In the last week I was working in difference department of shezan. They are difference.
Marking Department
MSD Department
Shipping Department

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Marketing manager Mr. Fayyad Ahmed was attached with me he showed how the system works
and how the marketing team works. Shezan International limited does not sell their products
locally.
In MSD department I am working with Mr. Shahid Mehmood Sb he tell us how goods load or
unload.
In Shipping department Mr. Abdul Rauf sb tells us how to good store and how to check gate pass
with good.
Balance Sheet for the Year 2009-10-11
Shezan International Limited

Balance Sheet
As At 30 June 2009
Year - 2009
(Rupees in thousand)
Assets
Non-Current Assets
Property, Plant and Equipment 299,770
Investments in Associate 7,724
Investments available for sale 824
Long Term Deposits and Prepayments 2,661
310,979
Current Assets
Stores and Spares 18,796

Stock in Trade 755,711
Trade debts 86,291
Advances, Deposits, Prepayments and other Receivables 37,113
Income Tax Recoverable 74,651

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Cash and Bank Balances 70,844
1,043,406
Total Assets 1,354,385
Equity And Liabilities
Share Capital And Reserves

Share Capital 60,000
Reserves 583,449
Un appropriated Profits 134,371
Total Equity 777,820
Non-Current Liabilities
Liabilities against assets subject to finance lease 543

Deferred Taxation 45,419
45,962
Current Liabilities
Trade and other Payables 392,371

Mark up accrued on short term borrowings 393
Short term borrowings- Secured 30,228
Current portion of liabilities against assets subject to finance lease 3,869
Provision for Taxation 103,742
530,603
Total Liabilities 576,565

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Contingencies and Commitments
Total Equity and Liabilities 1,354,385

Balance Sheet
As At 30 June 2010
Year - 2010
(Rupees in
thousand)
Assets
Non-Current Assets
Investment in associate 7,708
Investment available for sale 397
Long Term Deposits 2,588
427,495
Current Assets

Stock in Trade 842,482
Trade debts 135,317
Loan and advances 20,986
Trade deposits and short-term prepayments 18,183
Accrued financial income 514

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Income tax recoverable 59,886
Cash and bank balance 99,509
1,191,958

Reserves 653,022
Inappropriate profits 135,116
Liabilities against assets subject to finance lease 37,228

91,121
Current Liabilities

Mark up accrued on short term borrowings 1,806
Short term borrowings 92,526
680,194

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Total Equity and Liabilities 1,619.453

Balance Sheet
As At 30 June 2011
Year - 2011
(Rupees in
thousand)
Assets
Non-Current Assets
Investment in associate 7,690
Investment available for sale 668
Long Term Deposits 2,314
433,769
Current Assets

Stock in Trade 1,159,551
Trade debts 165,627
Loan and advances 24,302
Trade deposits and short-term prepayments 14,683
Accrued financial income 376

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Income tax recoverable 57,656
Cash and bank balance 82,608
1,511,800

Reserves 723,293
In appropriate profits 169,718
Liabilities against assets subject to finance lease 13,900

71,747
Current Liabilities

Mark up accrued on short term borrowings 4,034
Short term borrowings 207,741
920,811

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Total Equity and Liabilities 1,945,569
Profit and Loss Account for the Year 2009-10-11

Profit And Loss Account
For The Year Ended 30 June 2009
2009
(Rupees in
thousand)
Sales – Net 2,728,709
Cost of Sales 1,974,446
Gross Profit 754,263
Distribution Cost 443,862
Administrative Expenses 91,449
Other Operating Expenses 71,979
Other Operating Income (20,155)
587,135
Operating Profit 167,128
Finance Costs 6,542
Share of Loss – Associate 16
Profit Before Taxation 160,570

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Taxation 58,099
Net Profit For The Year 102,471
Earnings Per Share - Basic And Diluted Rupee - 17.08

2010
Sales – Net 3,528,134
Gross Profit 936,344
753,159
Finance Costs 17,950
Taxation 58,474

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Other compressive income
Unrelealized loss on remeasurement of investments available for sale 427
Total comprehensive income 106,318
Earning per share – basic and diluted rupee 17.79

2011
Sales – Net 4,221,827
Gross Profit 1,091,283
840,320
Finance Costs 40,343
Taxation 70,000
Other compressive income

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Unrelealized loss on remeasurement of investments available for sale 271
Total comprehensive income 140,873
Earning per share – basic and diluted rupee 23.43
Cash Flow Statement of 2009-10-11
Shezan International Limited.

Cash Flow Statement
2009
(Rupees in
thousand)
Cash Flow From Operating Activities
Cash Generated From Operations

160,57
profit before taxation 0
Adjustments for:
39,27
Depreciation 1
4,66
Interest/mark-up 0
(3,66
Profit on bank deposits 1)
(27
Dividend income 4)
9,99
Deterioration in value of shells, pallets and barrels 2
1
Share of loss from associate 6

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(2,56
Gain on disposal of property, plant and equipment 5)
47,43
9
208,00
Operating profit before working capital changes 9
(Increase)/decrease in current assets
(17,70
Stores and spares 5)
(76,26
Stock in trade 5)
(11,39
Trade debts 9)
1,46
Advances, deposits, prepayments and other receivables 2
(103,90
7)
Increase/(decrease) in current liabilities
54,07
Trade and other payables 5
30,22
Short term borrowings- Secured 8
84,30
3
188,40
Cash Generated From Operations 5
(4,28
Interest/mark-up paid 3)
3,98
Profit on bank deposits-Received 3
(74,65
Income tax paid 1)
Net Cash Generated From Operating Activities 113,45

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4
Cash Flow From Investing Activities
(47,76
Purchase of property, plant and equipment 0)
4,20
Sale proceeds from disposal of property, plant and equipment 6
27
Dividends received 4
(5
Long term deposits 8)
Investments - NIT units-Net -
(43,33
Net Cash Used In Investing Activities 8)
Cash Flow From Financing Activities
(23,40
Repayment Of Liabilities Against Assets Subject To Finance Lease 4)
(59,91
Dividends paid 0)
(83,31
Net Cash Used In Financing Activities 4)
(13,19
Net Decrease In Cash And Cash Equivalents 8)
84,04
Cash And Cash Equivalents At The Beginning Of The Year 2
70,84
Cash And Cash Equivalents At The End Of The Year 4

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Cash Flow Statement
2010
(Rupees in
thousand)
profit before taxation 165,219
Adjustments for:
Depreciation 44,875
Interest/mark-up 15,486
Profit on bank deposits (2,719)
Dividend income ----
Gain on the sale of investment (988)
Deterioration in value of shells, pallets and barrels 11,044
Loss on derecognizing of investments -----
Share of loss from associated 16
Gain on disposal of property, plant and equipment (1559)
66,155
Operating profit before working capital changes 231,374


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Stores and spares 3,715
Stock in trade (97,815)
Trade debts (49,026)
Loan and advances (6,353)
Trade deposits, and short term prepayments 4,216
(145,263)
Trade and other payables 93,908

156,206
Cash Generated From Operations 242,317

Interest/mark-up paid (14,073)
Profit on bank deposits-Received 2,286
Income tax paid (59,885)
Purchase of property, plant and equipment (97,590)

Sale proceeds from disposal of property, plant and equipment 3,621
Dividends received --
Long term deposits (45000)
Investments - NIT units-Net 45,988
Net Cash Used In Investing Activities (92,908)
Repayment Of Liabilities Against Assets Subject To Finance Lease (13.141)

Dividends paid (35,931)
Net Cash Used In Financing Activities (49,072)
Net Decrease In Cash And Cash Equivalents 28,665

36
Cash And Cash Equivalents At The Beginning Of The Year 70,844
Cash And Cash Equivalents At The End Of The Year 99,509

Cash Flow Statement
Year - 2011
(Rupees in
thousand)
profit before taxation 210,602
Adjustments for:
Depreciation 54,973
Interest/mark-up 37.593
Profit on bank deposits (3,540)
Gain on the sale of investment (1430)
Deterioration in value of shells, pallets and barrels 13,033
Share of loss from associated 18
Gain on disposal of property, plant and equipment (486)
100,161
Operating profit before working capital changes 310,763


37
Stores and spares 8,084
Stock in trade (330,102)
Trade debts (30,310)
Loan and advances (3,316)
Trade deposits, and short term prepayments 3,500
(352,144)
Trade and other payables 113,952

229,167
Cash Generated From Operations 187,786

Interest/mark-up paid (35,365)
Profit on bank deposits-Received 3,678
Income tax paid (57,656)

Purchase of property, plant and equipment (61,864)

Sale proceeds from disposal of property, plant and equipment 1,083
Long term deposit paid /received 274
Investment – available for sale (10000)
Proceeds from sale of Investments 11,430
Net Cash Used In Investing Activities (59,077)
Repayment Of Liabilities Against Assets Subject To Finance Lease (20,317)

Dividends paid (35,950)
Net Cash Used In Financing Activities (56,267)
Net Decrease In Cash And Cash Equivalents (16,901)

38
Cash And Cash Equivalents At The Beginning Of The Year 99,509
Cash And Cash Equivalents At The End Of The Year 82,608
Original Copy of Balance Sheet

39
40
Profit & loss Account of 2009-10-11

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42
43
Cash Flow Account of 2009-10-11

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45
46
Change in Equity Account of 2009-10-11

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48
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Ratio Analysis
Ratio
A relationship of one account with another account that expressed in mathematical form is called ratio.
Ratio Analysis
When we calculate varios types of accounting relationship with various accounting ratios called ratio
analysis.
Liquidity ratios involve two ratios

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1) Current Ratio
2) Quick (acid-test) Ratio
3) Debt / Equity Ratio
4) Debt Ratio
5) Gross Profit Margin
6) Return on Assets (ROA)
7) Return on Total Equity
8) Net Profit Margin
9) Operating Income Margin
10) Earning Per Share
11) Total Assets Turnover
12) Times Interest Earned
13) Working Capital
15) Operating Cash Flow Ratio
14) Divided Per Share
Current Ratio
Current ratio = Current assets / Current Liabilities
2009 2010 2011
1043406/530881 1191958/680194 15,11,800/ 9,20,811
=1.965:1 =1.753:1 =1.642:1

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Interpretation
The standard of this ratio is 2:1.in 2010 & 2011 the current ratio decreases to 0.212 & 0.32 .this is
because due to decreases in the current assets which show that firm having less ability to pay its debts
as compared with 2009. In this way 2:1 ratio of 2010 to 2011 because Ratio decrease .111 this because
decrease in current assets. On the other hand firm should do less financing to attain more profit from its
assets.
Quick (acid-test) Ratio
Quick ratio = Liquid assets ( Current Asset – Inventory) / Current Liabilities
2009 2010 2011
287695/530881 349476/680194 352249/920811
=.542:1 =.513:1 =.382:1
Interpretation

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The ratios standard is 1:1.in 2010 quick ratio decreases slightly to 0.02813 as compared to 2009 and
other hand decrease in the 2011 which slightly unfavourable condition of the company. This retio
decreses because of increase in current liabilities in 2010 but the quick assets of the company slightly
incresases due to more increase in trade debts and cash and bank balances.
Debt to Equity Ratio

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Debt to equity ratio = Total debts / Shareholder Equity
2009 2010 2011

576565/777820 771315/848138 992558/953011
=0.74:1 =.0.9094:1 =1.042:1
Interpretation
In 2010 & 2011 this ratio increases to 0.169 & 0.30 which means that creditor finance in total assets is
more than the finance provided by the shareholders this is because of the increase in total liabilities in
2010 & 2011 due to more short term borrowing and shareholders equity also increases due to increase
in reserves of the company in 2010 & 2011. 1:1 is acceptable by the creditors but company has
improved their debt to equity ratio in 2010 & 2011.
Debt Ratio / Debt-to-Total-Assets Ratio

Debt ratio = Total Liabilities / Total Assets

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2009 2010 2011
576565/1354385 771315/1619453 9,92,558/19,45,569
=0.426:1 =0.476:1 =0.510:1
Interpretation
In 2010 & 2011 debt ratio indicates that 47.6 % of company assets are financed with debt of various
type and remaining 52.3% are financed from shareholders equity.
There is an increase in this ratio during the year is 5% this is because of increase in debt such as trade
creditors, short term borrowings and asset finance-lease in 2010 & 2011 but the total assets also
increased.
Gross Profit Margin
Gross profit margin = Gross Profit (Sales - Cost of goods sold) / Net Sale*100
2009 2010 2011
754263/2728709*100 936344/3528134*100 1091283/4221827*100

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=27.64% =26.54% =25.85%
Interpretation
In 2010 & 2011 the gross profit margin decreases slightly to 1.10 & 1.79 as compared to 2009. In 2010
& 2011 sales of company increases but cost of sales also increases.
Gross Profit Margin
4500000
4000000
3500000
3000000
2500000
2000000 Gross Profit
1500000
Net Sale
1000000
500000
0
2009 2010 2011
Years
(Return on Assets) ROA
Return on assets = EBIT (Net Income) / Average Total Assets*100
2009 2010 2011

102471/1043406*100 106745/1191958*100 140602/1945569*100
=9.82% =8.96% =7.23%
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Interpretation
In 2010 this ratio decreases to 0.97 but 2011 increase of .63 % which shows that company does not
employ its assets efficiently as compared with 2009 & 2010. Net income increases slightly as compared
to more increase in sales in 2010 & 2011 as compared to previous year.
Return On Equity
Return on equity = Net income / shareholder * 100
2009 2010 2011
102471/777820*100 106745/848138*100 140602/953011*100
=13.17% =12.6% =14.75%

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Interpretation
In 2010 this ratio decreases by 0.57 but 2011 this ratio is 2.15 % increase due to increase in
shareholders equity which was due to increase in reserves during the year as compared to 2009, 2010
but the net profit after tax increase slightly.
Return On Equity
1000000
800000
600000
400000 Net Income

Shareholder Equity
200000
0
2009 2010 2011
Years
Net Profit Margin
.Net profit margin = Net Income (Net profit after taxes)/ Net Sale*100
2009 2010 2011

102471/2728709*100 106745/3528134*100 140602/4221827*100
=3.755% =3.025% =3.33%

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Interpretation
In 2010 net profit ratio decrease to 0.73 & increase of 2011 is .31 % which was due to more increase in
sales and less increase in profit in this year as compared to 2009.
Net Profit Margin
5000000
4000000
3000000
2000000 Net Profit After Taxes
Net Sales
1000000
0
2009 2010 2011
Years
Operating Income Margin
Operating margin Margin = EBIT (Operating income) / Net Sales *100
Operating income is also known as profit from operations.
2009 2010 2011

167128/2728709*100 183185/3528134*100 250963/4221827*100
=6.13% =5.19% =5.94%
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Interpretation
In 2010 operating margin decreases to 1.973 due to decrease in operating profit of the company in this
year as compared to 2009. On other hand 2011 operating margin decrease to .19 due decrease of
operating profit of the company in the year as compared to 2009. That represent the more operating
expenses during the year and company has no more available margin to cover interest cost, dividend
and taxes.
Earning Per Share
.Earning per share = Net income / No. of Share
2009 2010 2011

102471/6000 106745/6000 140602/6000
=17.08 =17.79 =23.43University Of Pakistan

Virtual
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Interpretation
In 2010 earning per share of the company increases slightly to 0.71 on other hand is 2011 earning per
share of the company increase of 5.64 which is due to some increase in profitability which is a
favorable condition for the company as compared to previous year.
Earning Per Share
160000
140000
120000
100000
80000
60000 Net Income
40000 No of Share
20000
0
2009 2010 2011
Years

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Asset Turnover
Asset turnover = Net sales / Total Assets
2009 2010 2011

2728709/1354385 3528134/1619453 4221827/1945569
=2.04 times =2.18 times =2.18 Times
Interpretation
In 2010 & 2011 the ratio difference the ratio 2009 is 0.14 which is a minor change but the sale and total
assets slightly increase in this year as compared with 2009 which is slightly favorable for the company.

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Interest Coverage Ratio ( Time Interest Earned)
Interest coverage ratio= Earning before interest and taxes / Interest Charge
2009 2010 2011

167128/6542 183185/17950 250963/40343
=25 times =10.21times =6.2 times
Interpretation
The purpose of this ratio is to calculate how many times a firm earns interest charges during the year.
The standard of this ratio is 4. In 2009 this ratio was 25 times but in 2010 this ratio reduces to 10.21
times which indicates the more external debit financing during the year due to which the interest
charges of the firm increases in 2010 & 2011. This ratio reduces more rapidly in this year up to 14.79
times which reveal the 15 times increase in interest charges & 2011 also decrease but the ratio is still
favorable.

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Working Capital
Working Capital = Current Asset- Current Liabilities
2009 2010 2011

1043406/530881 1191958/680194 1511800/920811
1.965 1.752 1.642
Interpretation:
This ratio indicates that working capital of the company is decreasing from 1.965 to 1.642 which is
unfavorable for the company because current assets of the company are decreasing from 2009 to 2011.
This is because of increase in current liabilities as comparatively current assets.

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Dividend Per Share
Dividend per share = Total Dividend / No of share
2009 2010 2011

60000/6000 36000/6000 36000/6000
=10 Per share =6 per share =6 Per share
Interpretation:
Dividend per share is the ratio between the total dividends distributed among the shareholders to total
number of outstanding shares. This ratio shows that dividend per share of the company is Rs.10 in 2009
but in 2010 and 2011 it is Rs.6 per share which is reducing. Decrease in Dividend per share is due to
decrease in total dividend

65
Operating Cash Flow Ratio
Operating Cash Flow Ratio = Cash Flow from Operations / Current Liabilities*100
2009 2010 2011

47439/530881*100 66155/680194*100 100161/920811*100
=8.94% =9.73% =10.88%
Interpretation:
Operating cash flow ratio is the ratio between cash flow generated from the operating activities of the
company during to current liabilities in that year.
This ratio indicates that operating cash flow ratio is decreasing gradually from 2009 to 2011 which is
favorable for the company.
SWOT
SWOT
Threads
Strengths
Opportunities Weaknesses
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Strengths
Strengths refer to those activities that a company performs better than its competitors.
Strength basically means “the core competency of the company.”

67
The following points are our company’s strength
A global business
ISO certificated
Using foreign technology
Pure and natural products
Strong financial backup
Good distribution net work
Weakness
Weaknesses are the activities that the firm does not do well or the resources it needs but does not
possess. It also includes the factors that cause losses, hardships, disputes and complaints for a
business.
The following are our company’s weaknesses
Low promotional budgets

ding the products
Internal environment is not so good
Advertisement policy is not too much good
Distributors are not much impressive
No advanced accounting software is used.
Opportunities
These are the directions that the business could profitably take in future because of its
strengths or because of the elimination of its weaknesses.
The following are opportunities for our company
Expansion of distribution net work

Diversification of product
Addition of new varieties
Modification according to present requirement
More and new flavor can be introduced

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Different packing and size of products can be offered to consumers
Threats
A threat to a business arises from the activities of competitors and from failing to avail
opportunities because of so many reasons like political instability and economic and financial
crises etc.
The following are the threats that our company is facing
Low quality food products on cheap prices

WTO
Less awareness of health
Nutritional facts of products with consumer
High taxes on them
They are paying high taxes in exporting
FUTURE PROSPECTS OF THE ORGANIZATION
Shahnawaz Sahib continues, ie aspiring for higher goals and always attaining higher targets. during the
year under review the company posted sales turnover at Rs 4.222 billion .Net profit at Rs 141 million
as a compared to Rs. 107 million of the corresponding year of 2010, Earn per share were Rs. 23.43
versus Rs.17.79 in the last year. Cash distribution of Rs. 75 % or 7.5 per share are record highest
figures in the career of this leading market player.
The coming year appears to be another challenging year for the business as economic environment is
not favorable due to power crisis, internal security issues, soaring inflation rate and political instability.
Despite above unfavorable conditions, the company will continue to focus on cost effectiveness and
profit maximization.
Looking forward, we are confident that Shezan will achieve growth in juices, jam and pickles products
and now expanding production capacity of juice predicts in All Pure and twist category. We are hopeful

69
that we will augment our sales growth with the increase in production capacity of juice products. Our
marketing force has been focusing on in increasing reach of diverse line of products
Conclusion
After doing internship and making analysis of shezan international limited I concluded that the
company is doing pretty much good but not to the extent that is required from it. Financial
analysis of the shezan international limited indicates that profitability ratios like gross profit and
net profit margin decreased due to increase in costs, operating expenses and finance costs.
Return on assets and return on equity are also decreased during the year. Activities ratios are
improved during the year which is favorable for the company. Interest coverage ratio declined
very rapidly due to more increase in interest expense on borrowing but is still favorable for the
company. Debt ratios are decreased due to more increase in debts as a result of long term
liabilities and short term borrowings. Total sales and net profit during the year is increased.
On the other hand being the pioneer in the juices in Pakistan it must have become market leader
now. There is no doubt that there come many diversifications and verities in the products of
Shezan but there is still a more to do. The company must do diversification in its juices and
other products and make it sure that it is following the required and up to mark placement and
promotion strategies such as to improve their distributor sector, to make new strategy for the
competitors, it has large capital , so they have to spend more money in the advertising field.

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Overall the shezan is going well but It is also true that it is facing a lot a challenges and
difficulties. It is basically affected by the Pakistan Economic Crisis due to this the cost of
products are increasing day by day. Operating expenses and taxes are very higher that reduces
the profit of the company. On the whole we can say that its performance is going better and the
customer satisfaction is well and its good will is also very well. But still it should be control the
deficiencies and also take care of its threats and weakness.
Recommendations
Some recommendations and suggestion are described below; by following them properly shezan
international limited can improve their performance and capture more market share by generating
more revenue and by getting edge over their competitors.
The company should maintain its product quality by setting a more efficient
Quality control department.
Supply should be improved and increased in areas having high demand and for
This purpose; company should improve its distribution channels.
Company should do a lot in the advertisement department as electronic media has shrunk the
world.
Modification according to present requirement
Different packing and size of products can be offered to consumers
Cost of productions should be reduced in order to earn sufficient profit on turnover.
Operating expenses and cost of finance (interest charges on loan) should be reduced.
There should be an increase in staff salaries so that they will work with motivation.
Accounting software should be improved and they should use latest / advanced accounting
software for recording, classifying and summarizing the business transactions.

Internal environment / setup of the factory should be improved.
They should make efforts to capture international market and should enhance their export of
products.
All the staff should be trained, educated and professional.
Should be adopting new and modern technology.
Every year sports, tour program or any healthy event also be arranged for motivation and
relaxation the employees.

71
Reference & Sources Used
Mr. Faisal Ahmad Nisar G.M. Finance (Shezan)
Mr. Rehman Sarwar Manager Account (Lahore)
Mr. Fayyaz Ahmad Manager Marketing (Lahore)
Following websites is use to searching the data
www.shezan.biz
www.google.com
www.wikipedia.com
Major portion is use in this report is following
Annual Report of Shezan 2009-10-11

shezan@brain.net.pk
shezan@cyber.net.pk

72
APPENDIX
Following scan document have been attached with this internship Report
Letter Of Undertaking
Training Completion Certificate
Letter of Internee’s Evaluation Form
Balance Sheet
Cash Flow Statement
Profit and Loss Account
Statement Of Changes in Equity

73

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Shezan International Limited Financial Report

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Name of Organization: Shezan International Limited

Prepared By: Haider Ali

Student ID: MC100200411

Submission Date: 13-01-2012

University: Virtual University of Pakistan

Virtual University Of Pakistan

beloved Prophet (P.B.U.H) who teaches us and enables us to stand

where we are. My Parents with dedication, love and gratitude without

whom caring support it would not have been”

Virtual University Of Pakistan

all of my teachers like

give me so lovely teachers, family, friends and all of my supporters.

Virtual University Of Pakistan

Virtual University Of Pakistan

Contents Page Numbers

Introduction of the Organization…………………………………………..………………9

Brief Introduction of all the Department…………………………………………………17

Plan of your Internship Program……..…………………..………………..……………….18

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Organizational Management Hierarchy Chart of Shezan International Limited

Director Director Marketing Supply Chain Director HR

Production Promotions Marketing Purchases S-Accounts Assistant

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G.M. Internal Audit

Supervisor Forecasting Area Sales

Production Hierarchy Chart of Shezan International limited

Bottling Tetra Pak Blending Electric Boiler

Consumer Section Section Workshop Section

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Asst. Sup Supervisor Asstant Boiler

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Nominal Share Capital

10,000,000 ordinary shares of Rs. 10 each 100,000

Issued share capital

237,500 ordinary shares fully paid in cash 2,375

5,762,500 ordinary shares issued as fully paid up bonus shares

6,000,000 ordinary shares taken up to June 30, 2011 _________

Products can be divided into the following

Local Consumer Exports

Following are the major products that Shezan is producing currently:

1- All Pure 250 ML

2. All Pure 1000 ML

3- Bottles Juice 240 ML

3- Juices Pack 250 ML

11- Mango Nectar

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16- Non-Returnable Juice

17- Garden Peas 30c

18- Fruits 30c

19- Sweet Corn 30c

New Products launched in 2010

21- Speed Energy Drink

22- Shezan cola (Pet)

23- Sangam 200 ml

Brief Introduction of All the Departments:

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Spreadsheets; other wise software is used for the accounting purposes

sundry store etc.

customer’s requirements and expectations.

Research and Development Department: