Final Coke Project by Qasim

Coca Cola Beverages Pakistan Limited
Undertaken By
 Qasim Taimoor
 10108092 (B)
(BBA)
Supervised By
 Mr. Naeem Hayat
Department;
 Finance & Inventory
Gift University
Gujranwala, Pakistan
1|Page Gift University

Table of contents
Acknowledgements --------------------------------------------------------- 6
Dedication ------------------------------------------------------------- 7
Objective of internship ------------------------------------------------------------- 8
Executive Summary ------------------------------------------------------------ 9
Introduction of COCA-COLA 10
History ------------------------------------------------------------- 10
Vision Statement ---------------------------------------------------------- 11
Mission statement ---------------------------------------------------------- 12
Values --------------------------------------------------------- 13
Coca Cola Icecek ---------------------------------------------------------- 14
Coca Cola Icecek Goals------------------------------------------------------------- 15
History of beverages sector--------------------------------------------------------- 16
Beverages sector in Pakistan------------------------------------------------------- 17
Culture of Coca Cola------------------------------------------------------------- 18
Milestones on variety------------------------------------------------------------- 19
Time line of Coca Cola------------------------------------------------------------- 27
Overview of the organization-
Brief history------------------------------------------------------------- 28

Nature of the organization---------------------------------------------------28
Business volume-------------------------------------------------------------29
Number of Brands--------------------------------------------------------- 29
Product lines------------------------------------------------------------- 30
Brand portfolio------------------------------------------------------------- 34
Organizational structure
Hierarchy------------------------------------------------------------- 35
No of Employees--------------------------------------------------------- 36
Main offices------------------------------------------------------------- 37
Departments
Introduction------------------------------------------------------------- 38
Production------------------------------------------------------------- 38
Logistic------------------------------------------------------------- 40
Quality------------------------------------------------------------- 42
Human Resource-------------------------------------------------------------44
MIS------------------------------------------------------------- 45
Accounts ------------------------------------------------------------- 46
Chain of command----------------------------------------------------------47
Span of control------------------------------------------------------------- 48

Financial analysis
Profit & Loss account------------------------------------------------------50
Balance sheet------------------------------------------------------------- 52
Ratio analysis------------------------------------------------------------- 53
Horizontal & vertical analysis ------------------------------------------56
Trend Analysis-----------------------------------------------------------64
Marketing strategy-------------------------------------------------------66
Major competitors of the organization---------------------------------69
Success and failure of different products ------------------------------71
Major HR Policies and practices-----------------------------------------76
Future prospects of the organization-------------------------------------83
Vision 2020------------------------------------------------------------------85
Overview of the Department(s) Where You Served Internship---------------88
Orientation-------------------------------------------------------------------89
Number of employees working in the Department-------------------91
Functions and operations-------------------------------------------------92
Short-falls/weaknesses ---------------------------------------------------101
Critical analysis of the management patterns--------------------------104

Responsibilities as a student Intern---------------------------------------106
Duties-----------------------------------------------------------------107
Accomplishments----------------------------------------------------108
Internal Audit --------------------------------------------------------109
New Knowledge Acquired------------------------------------------124
Problems encountered------------------------------------------------126
How internship experience impacts you career. ------------------127
Conclusions & recommendations for improvement
Conclusions-------------------------------------------------------------130
Recommendations -------------------------------------------------------131
References & Sources used---------------------------------------------------------132
Annexes-------------------------------------------------------------------------------133

Acknowledgement
I am very thankful to Allah who blessed me the potential and ability to accomplish this
project.
I am thankful to Mr. Hammad Rashid for his kind support whenever I needed.
I am very grateful to Mr. Muqeet Amjad and Mr.Tariq for his kind guidance throughout
my internship period and sharing of valuable knowledge.
I am thankful to Miss Qurat ul ain and all the staff of HR department all staff of Coca
Cola plant for being so cooperative and helpful to me.

Dedications
My beloved parents
I dedicate this little effort to my loving parents. I don’t have any word to thank them, for
me this would not have been possible without their love and support to complete this
project. I love you a lot. Thanks for everything.

Objective of Internship
Internship is an opportunity to complement the formal education with career-related

experience. My objective of doing an internship is to gain practical work experience in
Inventory Management and Finance dealing of company. As I have realized that to
compete in today's professional environment one needs more than just a formal degree.
This practical experience will make me work effectively in the business world after
completing my degree. It will also help me to make more informed career choices which
results in higher job satisfaction and higher productivity.
Coca Cola Beverages Pakistan Limited is an organization that believes in best

inventory and Finance practices. It’s a great opportunity for me to work with CCBPL as
an internee in the Finance & inventory department. Being practically involved in various
financial and inventory activities I feel more confident about the development of my
professional career. After completing my Internship with Coca Cola Beverages Pakistan
Limited I feel better prepared to handle the challenges of store keeping and finance
person position in future. It will be easier for me to become productive at a new job much
quicker than fellow graduates with only formal education.

Executive summary
Coca- Cola was introduced in Pakistan in 1953 at Karachi. Fanta and Sprite introduced in
1960, s. Coca-Cola Beverages Pakistan Limited was incorporated in 1996. January 1998
acquired Sialkot and Gujranwala Plants. Bottling Investment Group took In 2005 Coca-
Cola Beverages Pakistan Limited.
There are four sub departments of Finance at Gujranwala Plant. In my six weeks
internship I worked in only finance and inventory departments. Furthermore I worked in
a field to fill up the market execution form and check the 10 step (which is described in
this report) according to RED. I spend 1 week in orientation and inventory counting and
One week in HR department andFour weeks in finance department. In the end I did the
critical management analysis of the Coke and give some recommendation to the CCBPL.

INTRODUCTION OF COCA-COLA
Founded in 1886, the Coca-Cola Company is the world’s leading manufacturer, marketer,
and distributor of nonalcoholic beverage concentrates and syrups.
The company’s corporate headquarters are in Atlanta, with local operations in over 200
countries around the world.
History
Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed
that Coca-Cola became the world-famous brand it is today.
As a part of its drive to enhance the quality, availability, and image of Coca-Cola
products, The Coca-Cola Company established a new Company in Pakistan in 1996, by
the name of “Coca-Cola Beverages Pakistan Limited” (CCBPL or Company).
CCBPL is a part of Coca-Cola İçecek which is sixth largest KO bottler in the World. It
has a presence in ten countries including Turkey, Kazakhstan, Kyrgyzstan, Azerbaijan,
Jordan, Iraq, Turkmenistan, Tajikistan, Syria, and Pakistan. CCI has 48% shares of
CCBPL with Management Control.
CCBPL started the process of acquiring and investing in locally franchised bottling
operations. This process was completed in 2006 and, thereafter, all manufacturing and
selling rights of Coca-Cola products are now with CCBPL.
CCBPL has 6 plants and 13 warehouses throughout the country and serves a population
of more than 170 million with a production capacity of 111 million physical cases.
CCBPL is a significant player in the growth of Pakistan’s economy since it is one of the
country’s top foreign direct investments in FMCG (Fast Moving Consumer Goods)
business and is one of the major tax paying beverages companies of Pakistan.
10 | P a g e G i f t U n i v e r s i t y
Our Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.
 To refresh the world...
 To inspire moments of optimism and happiness...
 To create value and make a difference.
Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
 People: Be a great place to work where people are inspired to be the best they
can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create

mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and

support sustainable communities.
 Profit: Maximize long-term return to shareowners while being mindful of our

overall responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.
Our Winning Culture
Our Winning Culture defines the attitudes and behaviors that will be required of us to
make our 2020 Vision a reality.
Live Our Values
Our values serve as a compass for our actions and describe how we behave in the world.
 Leadership: The courage to shape a better future

 Collaboration: Leverage collective genius
 Integrity: Be real
 Accountability: If it is to be, it's up to me
 Passion: Committed in heart and mind
 Diversity: As inclusive as our brands
 Quality: What we do, we do well
Focus on the Market
 Focus on needs of our consumers, customers and franchise partners
 Get out into the market and listen, observe and learn
 Possess a world view
 Focus on execution in the marketplace every day
Work Smart
 Act with urgency
 Remain responsive to change
 Have the courage to change course when needed
 Remain constructively discontent

 Work efficiently
Act Like Owners
 Be accountable for our actions and inactions
 Steward system assets and focus on building value
 Reward our people for taking risks and finding better ways to solve problems
 Learn from our outcomes -- what worked and what didn’t
Be the Brand
 Inspire creativity, passion, optimism and fun
History Of beverages sector
 1798 The term "soda water" first coined.

 1810 First U.S. patent issued for the manufacture of imitation mineral waters.
 1819 The "soda fountain" patented by Samuel Fahnestock.
 1835 The first bottled soda water in the U.S.
 1850 A manual hand & foot operated filling & corking device, first used for
bottling soda water.
 1874 The first ice-cream soda sold.
 1881 The first cola-flavored beverage introduced.
 1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.
 1898 "Pepsi-Cola" is invented by Caleb Bradham.
Non-alcoholic Beverage categories (soft drinks)
 Non-carbonated
 Tea, coffee
 Fruit and vegetable juices
 Mineral water
 Milk and milk beverages
 Functional and nutritional beverages
 Carbonated
 Flavored fizzy drinks (high carbonation)

 Sports or isotonic beverages (low carbonation)
Beverages sector in Pakistan
The beverage industry in Pakistan has grown over the time. The industry produces
aerated waters, juices, syrups, and squashes. With about 170 units currently in operation
throughout the country, both upstream and downstream industries have grown and are
flourishing. The focus on this industry profile is restricted to aerated water only.
CULTURE OF COCA-COLA COMPANY
Whether it's your affinity for our brands, the attraction to our boundless opportunities or
the chance to make a difference in the world, there is one thing we all have in common
passion. From day one, you will notice a culture where our people are truly dedicated to
living our values
When you join the Company, you will enjoy an environment where ideas are free to find
their way, support is close at hand and pride inspires us to grow. Each day we are
developing meaningful and accelerated learning opportunities and anticipating the skills
and resources we will need to meet our future demands.
Our job is to refresh the world, and it requires the vision, innovation, and passion of
every single one of them. Each day the relationships you build will help you succeed not
only in your job, but in your career as well. We believe in fostering a workplace that
embraces all of our people’s unique abilities.
These elements define the key pillars of our organizational culture and are a deeply
ingrained part of our personalities:
 Be agile
 Be inclusive
 Act like owners
 Trust each other
 Inspire innovation
 Focus on Customers
 Have fun & enjoy
 Collaborate for success
Development in the Bottles.
Coca Cola in Pakistan
Coca Cola came to Pakistan in 1953. The Coca-Cola system in Pakistan has given
employment to thousands of local people, and has been contributing to the economy very
positively, as Coca-Cola in Pakistan has invested hundreds of million dollars (U.S.). Coca
Cola was operating through the franchise-system in Pakistan. But since 1997 Coca Cola
international has acquired the Coca Cola Beverages Pakistan Limited, and CCBPL has
been directly working under Coca Cola international. Later in 2008, Coca Cola Icecek– a
Turkish company acquired more than 50% shares of CCBPL, and now they have been
controlling the operations in Pakistan along with Coca Cola international.
In Pakistan Coca Cola is operating at these locations:
 Karachi  Gujranwala / Sialkot
 Rahim Yar Khan  Faisalabad
 Lahore  Islamabad / Peshawar
 Multan
Nature of organization
Coca cola is making consumable products. So the nature of the organization is

consumer consumable.
 Coca-Cola sells more than 1 billion drinks a day

 Coca cola have employs more than 55,000 people all over the world
Business volume
The coca cola company is not listed in the stock exchange of Pakistan. It is a
multinational company so its business volume is not be ascertain.
BRANDS OF COCA-COLA
 There are more than 350 brands of Coca-Cola. Out of which there are 7 brands of
coke that are served in Pakistan.
 Two brands “Lemon” and “Strawberry” are recently introduced products of Coca-
Cola in Pakistan
Product lines
Coca-Cola has over 400 brands in beverages and the most popular brands in Pakistan are
as follows:
 Coca Cola
 Coca Cola Diet
 Sprite
 Sprite 3G
 Sprite Zero
 Fanta
 Fanta Citrus
 Pulpy Orange
Splash
 K
inley
water
Brand Portfolio
Coca Cola Brand
Portfolio CCBPL
Sparkling
Still beverages
beverages
Coke Sprite Fanta Kinley Minute maid
Classic Classic Orange Splash
Diet 3G Citrus Pulpi orange
Zero
Organizational structure
Hierarchy
General Manager
Key Acc. Mgr Business Operation Mgr Sales & operation

mgr
S & M mgr Production Mgr QC mgr Account Mgr HR & IR mgr Admin mgr
Sales coordinator
RSMs
Sales mgr
Market service mgr

MDOs
Distributors
SMOs
Introduction of all the departments
Following are the departments In CCBPL Gujranwala Plant
 Production Department/ Quality Control Department

 Logistic Department
 Human Resource and Industrial Relation Department
 Sales
 Marketing Department
 Accounts Department
Accounts Department
Accounts Department is responsible for proper flow of cash and for the controlling of
financial assets of the organization. The budget is allocated by TCCEC (The Coca-Cola
Export Corporation) for the period of month or two and finance manager of TCCEC off
and on came there to check the financial activities.
On the whole Accounts Department consists of 16 (Sixteen Employees).They all are

hardworking and loyal to the organization.
In Accounts department computerized Accounting System prevails. Till last year main
financial transactions were taking place in Peachtree. Now all the transactions take place
in SAP. Other software’s being used in CCBPL are Basics, CCBPL Payroll System.
Accounts
Manager
Purchase
Assistant AM Assistant AM
Manager
Account
Route Settlement Senior Officer
Sales Tax Officer Officer(Inter
Officer Accounts(Payroll)
company)
Production
Manager
S& M
manager
QC
Genral Manager
Manager Accounts
Mgr
HR & IR
Manager
Admin
Manager
Financial Analysis
Financial analysis, ratio analysis, horizontal & vertical analysis of the
organization for the last three years.
Coca-Cola Beverages Pakistan Ltd.
Profit & Loss Account
For The Year Ended December 31, 2010…2012
2010 2011 2012

Rupees Rupees Rupees
(000) (000) (000)
Gross Revenue 5,079,939 6,157,342 7,683,455
Less:-
Commission & Incentive 119,375 130,418 150,848
Distribution Margin 177,470 183,609 188,616
Trade Discounts 190,161 144,838 172,127
Deduction From Gross Revenue 487,006 458,865 511,591
Sales Tax 124,199 205,192 232,345
Excise Duty 88,734 153,285 175,519
Total Taxes 212,933 358,477 407,864
Net Sales Revenue 4,380,000 5,340,000 6,764,000
Cost Of Material
Concentrate 228,928 465,477 719,257
Sugar 1,061,326 1,095,742 1,146,977
Co2 249,050 216,954 378,125
Crown Corks 222,955 192,470 256,134
NR/Pet 243,321 199,515 215,901
Packing Material 374,420 699,842 683,606
Total Cost Of Material 2,380,000 2,870,000 3,400,000
Production/Operation Expense 888,000 1,160,000 1,400,000
Depreciation - Production 44,506 24,543 27,370

Gross Profit -716,497 -886,635 -923,296
Operating Expenses
Sales & Distribution 13,675 156,609 144,103
Direct Marketing 140,000 248,000 219,000
Marketing Administration 3,688 5,764 6,779
General Administration 10,521 36,893 45,628
Depreciation - Other Than Production 12,953 33,120 31,848
Amortization 260,000 150,000 193,000
Total Operating Expenses 440,837 630,386 640,358
Operating Profit Before Interest & Tax 626,657 655,071 1,296,272
Add Non Operating Items (43,000) 36,000 (8,200)
Profit Before Interest & Tax 583,657 691,071 1,288,072
Interest Expense 11,870 11,000 6,250
Profit Before Tax 571,787 680,071 1,281,822
Less Income Tax 200,125 238,025 448,638
Net Profit After Tax 371,662 442,046 833,184
Balance Sheet
As On December 31, 2010…2012
2010 2011 2012

(000) (000) (000)
Assets
Cash at Bank 103,967 144,495 50,288
Cash in Hand 108,616 106,729 56,613
Accounts Receivable 187,585 712,823 677,182
Other Receivable 70,469 15,413 17,729
Inventories 119,607 122,225 133,600
Returnable Shells 105,676 124,133 53,601
Returnable Containers 130,589 151,227 86,420
Prepayments 15,980 16,328 1,998
Gross Fixed Assets 283,333 309,184 850,000
Less: Accumulated Depreciation (238,000) (303,000) (391,000)
Total Assets 887,822 1,399,557 1,536,431
Liabilities
Accounts Payable 10,703 10,652 9,623
Other Payable 48,641 47,303 51,759
Inter-Co. Payable 172,820 157,127 33,030
Deposit Shells 11,344 21,974 33,779
Deposit Containers 45,845 87,041 51,249
Income Tax Provision 89,474 30,653 21,627
Provision For Retirement Benefits 106,151 63,631 28,959

Revenue Reserves 96,829 227,189 414,705
Total Liabilities 1,231,629 1,742,127 1,790,162
Ratio Analysis
Ratio Analysis
2010 2011 2012

1 Liquidity Ratios
a Current Ratio = 842,489 1,393,373 1,077,431

289,353 324,097 179,440
2.91 4.30 6.00
b Acid Test Ratio = 470,637 979,460 801,812

289,353 324,097 179,440
1.63 3.02 4.47
2 Activity Ratios
a Accounts Receivable Ratio
A/R Turnover Ratio = 4,380,000 5,340,000 6,764,000

187,585 712,823 677,182
23 Times 08 Times 10 Times
Average Collection Period = 365 365 365

23 8 10
16 Days 46 Days 37 Days
b Inventory Ratio
Inventory Turnover Ratio = 2,380,000 2,870,000 3,400,000

119,607 122,225 133,600
20Times 23 Times 25 Times
Average of Inventory = 365 365 365

20 23 25
18 Days 16 Days 15 Days
31 | P a g e Operating
G i f t U n iCycle
versity = 34 Days 62 Days 52 Days
Ratio Analysis
2010 2011 2012

c Total Asset Turnover
Total Asset Turnover = 4,380,000 5,340,000 6,764,000

887,822 1,399,557 1,536,431
4.93 3.82 4.40
3 Leverage Ratios
a Debit Ratio = 484,978 418,381 230,026

887,822 1,399,557 1,536,431
0.55 0.30 0.15
4 Profitability Ratio
Gross Profit Margin = 1,067,494 1,285,457 1,936,630

4,380,000 5,340,000 6,764,000
0.24 0.24 0.29
Net Profit Margin = 371,662 442,046 833,184

4,380,000 5,340,000 6,764,000
8% 8% 12%
Return On Total Assets = 371,662 442,046 833,184

887,822 1,399,557 1,536,431
42% 32% 54%
Horizontal &
Vertical Analysis
Horizontal & Vertical Analysis
It is often useful to express Balance Sheet and Income Statement Items as percentages. In Vertical
analysis of financial statements an item is used as a base value and all other accounts in the financial
statements are compared to this base value. On the balance sheet total assets equal 100%. In vertical
analysis each asset is stated as a percentage of total assets.

Vertical Profit & Loss Account
2010 2011 2012

Gross Revenue 100 100 100
Less:-
Commission & Incentive 0.023 0.021 0.020
Distribution Margin 0.035 0.030 0.025
Trade Discounts 0.037 0.024 0.022
Deduction From Gross Revenue 0.10 0.07 0.07
Sales Tax 0.02 0.03 0.03
Excise Duty 0.02 0.02 0.02
Total Taxes 0.04 0.06 0.05
Net Sales Revenue 99.86 99.87 99.88
Cost Of Material
Concentrate 0.05 0.08 0.09
Sugar 0.21 0.18 0.15
Co2 0.05 0.04 0.05
Crown
34 | P a Corks
ge Gift University 0.04 0.03 0.03
NR/Pet 0.05 0.03 0.03
Packing Material 0.07 0.11 0.09
Total Cost Of Material 0.47 0.47 0.44
Production/Operation Expense 0.17 0.03 0.03
Depreciation - Production 0.01 0.01 0.01
Gross Profit 99.21 99.36 99.40
Operating Expenses
Sales & Distribution 0.003 0.025 0.019
Direct Marketing 0.028 0.040 0.029
Marketing Administration 0.001 0.001 0.001
General Administration 0.002 0.006 0.006
Depreciation - Other Than Production 0.003 0.005 0.004
Amortization 0.051 0.024 0.025
Total Operating Expenses 0.09 0.10 0.08
Operating Profit Before Interest & Tax 0.12 0.11 0.17
Add Non Operating Items (0.01) 0.01 (0.00)
Profit Before Interest & Tax 0.11 0.11 0.17
Interest Expense 0.00 0.00 0.00
Profit Before Tax 0.11 0.11 0.17
Less Income Tax 0.04 0.04 0.06

Net Profit After Tax 0.07 0.07 0.11
Vertical Balance Sheet
2010 2011 2012

Assets
Cash at Bank 11.71 10.32 3.27
Cash in Hand 12.23 7.63 3.68
Accounts Receivable 21.13 50.93 44.08
Other Receivable 7.94 1.10 1.15
Inventories 13.47 8.73 8.70
Returnable Shells 11.90 8.87 3.49
Returnable Containers 14.71 10.81 5.62
Prepayments 1.80 1.17 0.13
Gross Fixed Assets 31.91 22.09 55.32
Less: Accumulated Depreciation (26.81) (21.65) (25.45)
Total Assets 100.00 100.00 100.00
Liabilities
Accounts Payable #REF! #REF! #REF!
Other Payable #REF! #REF! #REF!
Inter-Co. Payable #REF! #REF! #REF!
Deposit Shells #REF! #REF! #REF!
Deposit Containers #REF! #REF! #REF!
Income Tax Provision #REF! #REF! #REF!
Provision For Retirement Benefits #REF! #REF! #REF!

Revenue Reserves #REF! #REF! #REF!
Total Liabilities #REF! #REF! #REF!
Horizental Profit & Loss Account
2010 2011 2012

Gross Revenue 100 121.21 151.25
Less:-
Commission & Incentive 100 109.25 126.36
Distribution Margin 100 103.46 106.28
Trade Discounts 100 76.17 90.52
Deduction From Gross Revenue 100 94.22 105.05
Sales Tax 100 165.21 187.07
Excise Duty 100 172.75 197.80
Total Taxes 100 168.35 191.55
Net Sales Revenue 100 121.92 154.43
Cost Of Material
Concentrate 100 203.33 314.18
Sugar 100 103.24 108.07
Co2 100 87.11 151.83
Crown Corks 100 86.33 114.88
NR/Pet 100 82.00 88.73
Packing Material 100 186.91 182.58
Total Cost Of Material 100 120.59 142.86
Production/Operation Expense 100 130.63 157.66

Depreciation - Production 100 55.15 61.50
Gross Profit 100 120.42 181.42
Operating Expenses
Sales & Distribution 100 1145.22 1053.77
Direct Marketing 100 177.143 156.429
Marketing Administration 100 156.29 183.81
General Administration 100 350.66 433.69
Depreciation - Other Than Production 100 255.69 245.87
Amortization 100 57.69 74.23
Total Operating Expenses 100 143.00 145.26
Operating Profit Before Interest & Tax 100 104.53 206.86
Add Non Operating Items 100 -83.72 19.07
Profit Before Interest & Tax 100 118.40 220.69
Interest Expense 100 92.67 52.65
Profit Before Tax 100 118.94 224.18
Less Income Tax 100 118.94 224.18
Net Profit After Tax 100 118.94 224.18
Horizental Balance Sheet
2010 2011 2012

Assets
Cash at Bank 100 138.98 34.80
Cash in Hand 100 98.26 53.04
Accounts Receivable 100 380 361
Other Receivable 100 21.87 115.03
Inventories 100 102.19 111.70
Returnable Shells 100 117.47 43.18
Returnable Containers 100 115.80 57.15
Prepayments 100 102.18 12.24
Gross Fixed Assets 100 109.12 300
Less: Accumulated Depreciation 100 127.31 164.29
Total Assets 100 157.64 173.06
Liabilities
Accounts Payable 100 99.52 90.34
Other Payable 100 97.25 109.42
Inter-Co. Payable 100 90.92 21.02
Deposit Shells 100 193.71 153.72
Deposit Containers 100 189.86 58.88
Income Tax Provision 100 34.26 70.55
Provision For Retirement Benefits 100 59.94 45.51

Revenue Reserves 100 234.63 182.54
Total Liabilities 100 110.96 99.87
Trend Analysis
Three Years Trend Analysis
10000000
8000000 7,683,455
Sale (000)
Years Sale (000) 6000000 6,157,342
5,079,939
2010 5,079,939 4000000
2011 6,157,342
2000000
2012 7,683,455
0
2010 2011 2012
Years
Sales trend linec of company shows a smooth increase from 2010 to 2012.It means company is
performing well over the years.
Another factor of lower sales in 2010 is that some aggressive marketing by competitors and
also some effective schemes started by Pepsi to increase its market share.
900000 833,184
800000
Years N.P (000)
700000
2010 371,662
Net Profit (000)
600000
2011 442,046
2012 833,184 500000 442,046
371,662
400000
300000
200000
100000
0
2010 2011 2012
Years
The minimum net profit margin is in the year 2010 where as maximum net profit is in the year 2012
Although there is consistent variation in net profit among various years but overall company position is
positive. In year 2010, the net profit margin is less than remaining years which is due to decrease in sale,
Although the main reason for decrease in sale is due to weak marketing by Coca-Cola Beverages Pakistan Ltd,
as compared to Pepsi, but in next years the net profit margin increases due to increase in sales which is a result
of effective schemes, more empty and coolers injection in the market.

Competitors OF COCA-COLA
 Sparkling beverage Competitors
 Pepsi cola
 Rc cola
 Gourmet
 Still Beverage
 Nestle
 Shezan
 Rani float
Pepsi, the flagship product of PepsiCo, The Coca-Cola Company's main rival in the soft
drink industry, is usually second to Coke in sales, and outsells Coca-Cola in some
markets. RC Cola, now owned by the Dr Pepper Snapple Group, the third largest soft
drink manufacturer, is also widely available.
Around the world, many local brands compete with Coke. In South and Central America
Kola Real, known as Big Cola in Mexico, is a growing competitor to Coca-Cola. On the
French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a
growing competitor to Coca-Cola. In the French region of Brittany, Breizh Cola is
available.
Success & failure of
different Products
The 4 Most Important Products of The Coca Cola Company
1) Coca Cola – represents 26% of the company’s stock value
This is the flagship brand of the company, sold in virtually all countries across the globe.
Even beyond the soft drink market, it is one of the most widely recognized corporate
brands.
2) Diet Coke – 17%
Diet Coke is the ‘sugar free’ version of Coca Cola Classic and the second most widely
sold soft drink for the company. It was first introduced in 1982 and remains among the
most successful soft drink brands.
3) Coke Zero, Sprite Zero, Barq’s & Others – 14%
This division includes smaller brands like Coke Zero, Sprite Zero, Barq’s and others
4) Powerade & Other Brands – 14%
This division includes non-carbonated drinks like fruit juices and sports drinks.
The main brands associated with this division are:
 Powerade – A sports drink available in multiple flavors. It was first introduced in

1988 and has since aimed to gain loyalty among sports enthusiasts.
 Other Ready-to-drink beverages like Nestea.
Reasons of Success
 Brand Image –
Since soft drinks do not fulfill any basic need but are positioned as a lifestyle choice,
correct marketing becomes critical. The way a customer perceives a brand can make
or mar a brand.
 Easy Availability –
Since most of the soft drink consumption occurs at an impulse, it is critical for a
product to be available easily.
 Taste, Look & Flavor –
Though these are secondary attributes, they do matter when a customer makes a
choice between two very similar products. This is the reason that look and feel of the
same brand differs across countries as companies seek to customize the feel of the
drink to local tastes.
 Price –
Most soft drinks are priced in a similar range, hence any soft drink that is priced
higher can get pushed out of the market.
Fail Products of Coca Cola
 New Coke
Often cited as the ultimate example of one of the most notorious product flops – and
brand missteps – of all time, New Coke was launched in the mid-1980s by Coca Cola in
an attempt to help the soda company stay ahead of competitors during the so-called “cola
wars.” Instead, it just annoyed consumers.
Reasons of failure
Coca-Cola's sudden reversal on New Coke led to several rumors and conspiracy theories
that have circulated in the years since to explain how a company with the resources and
experience of Coca-Cola could have made such an apparently colossal blunder.
In talks, and books that relates with market researchers in the food industry who put most
of the blame for the failure of New Coke on the flawed nature of taste tests.
The putative switch was planned all along to cover the change from sugar-sweetened
Coke to much less expensive high fructose corn syrup (HFCS
 Sprite 3G
Another fail product of Coca Cola with lowest market share is Sprite 3G.
Reasons of Failure
The main factors which are affecting the sale of sprite 3G are
 Taste
 Availability
 Color
According to customers there is lots of room is left to make the tasteExcellent.95%

customers says that Sprite 3G must change its taste.
60% of customers says that Spruite 3G advertisement make them Adventourous & 15%
of them are strongly disagree with its advertisement.
80% of the customers feel easy to purchase It from nearby shop.
Color is also not appriciated by Customers. 50% of customers like to see Sprite3G in
green color & 30% in Blue.
Future Prospects of
Coca Cola.
2020 Vision
Coca-Cola leaders recently took center stage to talk about growth – where it is and where
it will be – at the annual Consumer conference. President Coca-Cola was on hand to
provide an overview of business and how Company is investing for the future.
He opened the presentation with a progress report on our 2020 Vision, telling analysts
that three years into our journey we’ve exceeded growth targets for global volume,
operating income and earnings per share. He pointed out these gains have come despite
one of “the most difficult macro-environments in recent history.”
The Company has generated over $30B in cash from operations in the past three years.
“That capital is continually re-invested in the business, because reinvesting in our system
is what drives sustainable, long-term value creation.”
Coca-Cola has laid out its plan;
 How it will continue to remain the world's leading beverage manufacturers.
 Doubling system revenue to $200 billion in 2020 from $95 billion last year.
 Coke plans to exponentially exceed the numbers of servings of their products to

do so ( water, soft drinks, juices, sodas, etc.).
 Company will focus on working across the globe to target their consumers with
innovative new products.
 Continuing economic headwinds in different markets, but said the opportunities

for growth at all levels, whether incremental or exponential, remain abundant.
 People are demanding more and more for their time and attention. People need to
be constantly entertained now, [it's an] ADD economy," therefore @Coca cola
"We will be changing fundamentally from being TV commercial producers to
content developers. ... We will be leading a new and unique approach ... from
purely mass marketing to one-on-one marketing."
2020 Vision
The world is changing all around us. To continue to thrive as a business over the next ten
years and beyond, we must look ahead, understand the trends and forces that will shape
our business in the future and move swiftly to prepare for what's to come. We must get
ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term
destination for our business and provides us with a "Roadmap" for winning together with
our bottling partners.
Overview of the
Department where I
served...
Orientation
Mr Muqeet my project leader told me to do work on control procedure relating to

ordering, planning, stacking and recording of inventory. For these things he tell to me
read SOP of company relating to purchase order inventory recording, stacking, and how
to deal with these issues according to SOP. He tells me to do variance analysis and check
the difference between the physical check and SAP (company software). He told me to
verify up to date inventory record, planning of production, inventory record of stores and
spares, control weakness relating to inventory, proper instruction followed by the all
member of stock count. For these things firstly I read SOP of company n understand what
company wants or what companies rules and regulations according to inventory
management or purchase order. Then I got how to deal with these challenges and how
you ask questions from the relative department people and verify what they said.
Coca cola has arranged a very informative Orientation which is especially for the interns,
to know about worldwide information of Coca Cola. HR employee Miss Qurat-ul-ain
gave us the orientation about Coca cola it was a three hours long orientation. She tells us
about the products, the rules and regulations and ethical course of Coca Cola. She tells us
that this organization wants from their employees, accountability, passion, innovative
ideas and team work. After the orientation session we interns met Mr. Shah nawaz
Human Resource manager. and also he discuss with us the wrongs saying and myths
about coca cola, rumors he convince us that coca cola didn't do any harm and tell us
about the ingredients of coca cola and after that we all interns did cross questioning and
this all discussion and information was very informative.
Overview of Inventory Department
Every type of material which require for the production are kept at inventory ware house
and the products like ( sugar, bottle caps and packaging) are kept in inventory wares
house according to label code and manner. The concentration power room where the
formula of coca cola is kept and that it is a secret formula no one know about this and this
formula comes from ATLANDA. After production stock is kept in finish product
warehouse and with the help of lifter it is loaded on vehicle and distributed to the
distributor.
Total product in store and spare which records are mentioned in SAP is 3550 and location no is
3004 which is specified for spare parts for machine. They perpetually record the inventory which
enters in store room or which line engineer acquire from store room. The record is physically
checked by the engineer department weekly or monthly basis with the sample of 50-80 products
every month and relates this record with the SAP. If any differences occur then they solve issues
with in a three day and reports to their manager with in a day. The stock are also physically
checked by the accounts department on monthly basis with the random sample size and took 150
product then relate with SAP. And stock also checked by the ANADOLU group. Stocks codes are
mentioned on every product and these products are kept in store according to the line number,
and the department name like utilization, electrical parts, lubricant, and general mechanical.in
store room the parts of four lines are separately kept with specified code according to SAP.
Coca cola has 4 product lines, line 1, 2, and 5 are krones plants which import from Europe.
 Line 1 makes plastic bottles pet
 Line 2, 5 makes regular glass bottle250ml and these three line material are import and if
any need of big maintenance then engineers are hired from outside of company.
 Line 4 is Pakistan local plant which makes every size of bottles and its material is local
and local spare parts are used.
Structure and Hierarchy at Inventory Department
Commercial
Department
TCM(Territory
Regional Sale Market delivery Pre Selling
Commercial Sale Manager
Manager officer Officer
Manager)
Sale service
Sale cooridnator
Manager
Marketing Marketing
service Manager Executive
Cold asset Cold Asset

Manager officers
Functions and Operations
 Planning:
In store and spare department planning is done by the engineer of store room and the production
engineer. He makes plans by visiting store room and sees the quantity of things which is required.
After this minimal or maximum routine and quantity of each product spare part is decided and
order for purchasing. Planning can be more effective if company hair one store room planner who
oversee all the activity in all departments which spare parts are related to store room so then
every line of production can easily acquire their products. For new Plant initial inventory packing
list engineer demand list. Then from list if he wants to order.
 Order procedure:
Line engineer order the product which he wants to run the production. So firstly he check through
SAP that store room have this product in stock or not if the store room has product then line
engineer makes reservation and the product give to him. And if store room is not having a product
then he generates ticket from head office and open new code in SAP and this code is active within
24 hours. If code open then purchase request generate and approve from the production manager,
operation manager, and purchase department. After this purchase department order 3 quotations
from market and select one of them which are effective and cheap. The products enter in
company along with the inward gate pass for record and attach vendor delivery challan and these
products received by the store room and tell the engineer to make reservation and take your
product. The order procedure can be more effective by putting more efforts by the engineer or
oversee all the activities perpetually by the management of store room and the necessary products
order in excess quantity. So that the production should not be stopped and the company is not
facing loss.
 Stacking:
Stacking of products is according to the company SOP. Every product is kept in store according
to specific label and under their product line and perpetually checked by the stock room accounts
manager. And they convert the product code from SAP 2012 to SAP 2013. So for effective
stacking they have to ensure or complete the stacking process as early as possible.
 Recording of inventory:
Inline stacking and gathering of all spare parts of one product is under one line. Excess quantity is
held in free inventory room. Which have no record according to the accounts person of stock
room but managed by Mr. Hafeez store room engineer. For effective recording free inventory
system must be recorded in SAP.
 Obsolesce or slow moving products:
According to engineer slow moving product is in excess quantity because these are electrical
products and its life cannot be measured i.e. belt, invertors. And obsolesce product is in very less
quantity.
 Security:
The security of store room is not proper but they can increase by camera security system. And
material is safe in store room in every type of weather.
Procurement Department
Business cycle start from procurement wen purchase requisition generate then the invoice
for specific product made after this medium of payment is decided mostly payment is on
credit basis and in the end vendor statement and reconciliation prepare. Every type of
purchasing in coca cola is done through procurement department but the local plant
payment and some small parts like belt of machinery, wholes, invertors, nuts, bolts these
payments are made locally but the payment of heavy machinery and krone plant
equipment made centralized. For the purchase of material purchase requisition raised by
the line manager or functional department then signed by the production manager after
this purchase department make 3 quotations and demands things which they require from
3 different register vendors and select the product of 1 vendor whose product quality is
superior and rate is cheaper. Then procurement department make purchase order which is
approved by operational manager, and keep one invoice copy as a record and other sent
to vendors for delivery of goods. In purchasing of goods cash transaction is totally
avoided as company rule stated. Payment medium is selected and most of the payments
made by centralized and few payments made by territory accounts manager quarterly or
after 30 days according to purchase order contracts. The company is not made long term
contract with the supplier and purchase things from different supplier. Vendor works
according to the company terms rules and regulation which defined to him before
purchasing of anything. Company rule from vendors is to ensure the quality and size of
product and to made delivery within 30 days. When vendors deliver the goods the gate
inward pass is prepared and these goods sent to the store and spare where related
department head or engineer check the product quality and size if it is satisfied then
accounts manager payments according to LCOA rule and if it is imported material then
after checking payments made to vendor centralized. If the quality is not up to standard
then product return to vendor and said him to give us a product as required standard.
 Centralized Payments:
It is for imported plants equipment or for the heavy machinery and its payments made by
the purchase committee of head office.
 Local Payments:
It is for local plants equipment or the small thing necessary for machine like nuts, bolts,
belt, and its payment made by the territory purchase department.
SOP ON INVENTORY CONTROL & SECURITY
Inventory control involves counting of inventories and maintaining perpetual inventory
records and other reports.
 Inventory Records
Inventory records are maintained at each location. Warehouse manager is responsible for
proper and real time maintenance of inventory record. However, Production Manager is
the custodian of stocks at shop floor. Periodically, the Warehouse Manager should review
the perpetual records its accuracy and also check the physical availability of stocks for
reasonableness.
 Inventory Counts
Periodic and Surprise physical inventory counts are performed in order to verify
quantities on hand.
 Count Frequency
All items of Inventory, stores, spares and packing material (including resin and preform)
shall be subject to monthly physical checks. Only the items relating to raw materials,
finished goods and packing materials shall be subject to 100% check every month,
whereas, stores and spares shall be subject to 100% at year-end stock count.
Authorized person from Accounts department will perform stock count and write
physical quantity against each item on the stock listing. This document will be signed by
representatives of both Finance and Warehouse. After stock count, physical inventory
document will be created in SAP mentioning the items counted. Physical quantities as per
signed document will be entered in SAP by Operations Controller and report shall be
generated for differences, if any.
If there are any count differences, the Warehouse Manager will provide (in writing) the
valid reason along with mitigation plan to avoid such differences in future. TOM and
TFM will also sign the document and allow the posting of differences in SAP.
Murabaha stock
Entire stock held with Muqaddam will be counted during the monthly stock count and
matched against Muqaddam’s records. Warehousing shall ensure proper marking
between stock owned by bank and by CCBPL.
 Inventory Differences (Shortages only);
All differences identified should be resolved or a consensus be developed within 3

working days of the inventory count and
 Differences up to PKR 100K (cumulative) will be approved jointly by TFM and

Operations Manager.
 More than PKR 100k and up to PKR 500K (cumulative), will be approved by
Head of Regional Finance and,
 Above PKR 500K (cumulative), will be approved by DSC and CFO.
TOM will be responsible to get approval of inventory shortages from DSC, CFO and
RFM (as per the nature of difference).
The representative of the Finance department shall also perform surprise physical counts.
The timing of these counts shall be the responsibility of the Territory Finance Manager.
At year-end, Inventory and Stores and Spares shall be subject to physical check. The
external auditors shall also accompany the CCBPL employees during this stock check
activity.
 Controls over Inventory Counts
Each operation should have a count plan in place to ensure all inventories are physically
counted within an appropriate period. To ensure a complete and well-controlled inventory
count, the following controls should be in place:
o Warehousing must ensure all stock is labeled by using bin cards or any other
appropriate tagging mechanism. Warehouse representative shall sign all bin cards
at month end and ensure they are updated and no manual changes have been
made.
o The stock count activity should ideally be done in the morning at shift change
time and if possible, the production should be stopped.
o Receiving/shipping/transfers of finished product between locations during
physical counts should be controlled.
o If possible, all finished product movement in the warehouse should cease during
the count.
o Any inventory on hand owned by others (goods on hold on behalf of distributors
etc) are identified and controlled and not inventoried during the count.
o Make sure that expired or damaged products, as well as the ones whose
production has been terminated, are clearly marked, clearly indicated and kept
separately.
o Stock once counted should be marked as counted to avoid any chances of double
counting.
o Check if there are any deficiencies (disorderly stored, useless due to dirt, stored
without considering expire dates etc.) in terms of hygiene and order of
warehouses.
o Check whether the stocks are adequately protected against the weather or other
adverse effects (humidity, heat, rain etc.).
o Check whether the stock is placed and stacked as per manufacturer

recommendations.
o Check whether the necessary precautions (lock, security cam, alarm etc.) are
taken regarding security.
o Check whether the necessary precautions (fire fighting system, fire extinguisher,
fire hose, water tank etc.) are taken regarding fire.
o Increase the number of samples, if an important difference or an unusual situation
occurs.
o In case of a difference, repeat the count to make sure at the time of stock taking.
o After completion of the physical count, make sure the minutes is signed by all
participants.
 Obsolete and Slow-Moving Inventory
Warehouse Manager will report detail of slow moving and obsolete inventory (with
coordination of respective department) to TOM on the bi-annual basis. TOM will check
the utilization of these items at other territories arrange for transfer of these items, if so
required. For rest of the items TOM will get financial impact of these items from TFM
and forward a request to DSC for write off approval. After his approval an appropriate
provision will be incorporated and RFA procedure will be initiated.
Warehouse Manager will also report Expired/ Near to Expiry Finished Products to TFM
on monthly basis to record appropriate provision and to initiate write Off RFA.
Obsolete or expired inventory is identified and destroyed/ disposed off, as soon as

practical after approval of RFA. Once materials are determined to be obsolete or expired,
they are segregated in the warehouse and clearly identified to avoid induction into the
trade or the production process.
Presence of Finance person must be ensured by warehouse department at the time of

destruction of expired stocks. Destruction summary will also be signed by both
warehouse and finance representatives in addition to TOM and TFM.
 Security
Inventory should be stored in a secure location where entrances and exits are properly
controlled. All inventories should be placed as per the environmental conditions
recommended by the original manufacturer.
Responsibility Grid ( Summary)
Sr. # Activity Responsible
1 Regular stock counts TWM, TFM
2 Inventory differences TOM
3 Surprise stock counts TFM
4 Stock labeling TWM
5 Production stoppage during inventory count TOM
6 Proper stacking of stock for easy counting TWM
7 General upkeep of warehouse TWM
8 Slow moving and obsolete stock TWM
9 Security of stock Security personnel
Draw backs of store and spares:
Engineering store consists of 3700 products and the quantity items of product are 13000
and these all products manage by the only one person. And person is not engineer he is
accounts person and he know little but well from the engineers.
These products life time is about 100 year but the lack of engineering knowledge and
miss management of store rules there are many products which is not useful.
The stacking of products are not proper and not kept in a sequence.
According to accounts person product are kept line vice but when I audit I came to know
that there is no any specific condition of keep the product in store and the management of
store is poor.
The security system is poor no security camera is provided, no proper exit or entrance
system.
Engineer of line don’t know about their products part and even they don’t know about
the product code. Any wrong purchase requisition and the foremen who come for
receiving order they give receipt to the accounts person and take own self things and
sometime accounts person is busy in other works or at a time he is handling more than
one purchase requisition so he cannot seen their things which the foremen take from the
store and this is a risky management system there is a chances of robbery from store.
A single person in store handling the issuance of stock, receiving of stock and also
handle the physical count of stock.
Another main issue in store is that there is too much dust there every product in store is
cover with full of dust, and in store temperature is high which affect the store item i.e.
specially the rubber item these item sometimes melt with the high temperature of store
room.
After the official time when store room is closed by the official person who is handle this
from morning to evening. The guard came here and secure the store but after official time
if any line engineer need any of the product they enter the store pick the product which
they need and said to guard that they take this product but security guard have no
knowledge about these items, so there is lack of security issues.
Critical analysis
Weak areas that need to be

improved.
Main Functions of Management
There are four main functions of management.
1. Planning.
2. Organizing.
3. Leading.
4. Controlling.
Analysis of Management Patterns at inventory department;
 Lack of Planning;
Due to lack of proper planning and mismanagement there are many products which are
obsolete and does not have any use in foreseeable future.
CAUSE/EFFECT
A lot of useful resources (space as well as investment) are occupied by these excessive
stocks of inventory resulting in space constraints.
 Lack of organizing goods
The stacking of store items was not in accordance with the standards established by the
Company.
 CAUSE/EFFECT
The improper stacking result in wastage of time in counting & finding the required stock
item as well as increases the likelihood of misplacement of inventory.
 Lack teamwork
Engineering store is managed by only one person who is engineering store officer. Store
in-charge is not present all the time to oversee & manage engineering store. All activities
related to issuance, receiving and recording of entries are performed by one person.
The current structure of engineering store lacks the principle of segregation of duties.
There is no proper team work followed in the department.
 CAUSE/EFFECT
Segregation of duties is one of the key components of internal control which implements
an appropriate level of checks and balances upon the activities at various levels.
Separation of duties, as a security principle, is a fundamental principle for the prevention
of fraud and errors.
Team work policy should be implemented to avoid such hulk of work at times.
 Lack of Control
The movement of items at engineering store does not stop after official timings due to
proper lack of control of management and these movements are not carried out under the
supervision of anyone from engineering store. After official time, store room is handled
by security guard who has no knowledge about the spare parts. Line engineers &
Foreman picks products from store & records on register themselves & on the basis of
this information store officer updates the records in SAP next day.
CAUSE/EFFECT
The stock movement without supervision of store officer and proper control may result in
discrepancies from production department as well as increases the likelihood of
misplacement of stock.
Responsibilities as an
Intern
Duties;
 To understand the management of coca cola because it’s a multi-national

company. And another challenge was to understand the inventories and fixed
assets for Coca cola as it’s a vast organization.
 To know about the company SOP related to the department which use for my
project.
 To verify whether company department are working according to SOP or not.
 To count the stock of different department and verify that it is related with SAP
or not.
 To made the final list of stock which was counted.
 To observe the gate operations.
There are 3 gates of Gujranwala CCBPL. 1 gate is for plant, 2nd gate is for sale center and
3rd gate is for rented ware house.
 To count the stock of preform (pet bottles material blow) and to know about the
control procedure of preform, inter territory transfer system, issuance procedure
receiving and standardized quantity.
 To count the stock of Concentrated power. Concentrated power is in the form of
powder formula and there is 20 pieces in one pack.
 To audit the fixed assets of company office equipment.
 To know about the credit limit process of company, how to minimize risk, who
raise the request, who further approve this.
 To count the company cars and Route Vehicles which were given to company’s
different employees and Delivery persons.
 To go to Sialkot territory and visit the Sialkot Sales center.
 To arrange and check the file of employees in HR file room that whether their
documentation is complete or not.
Accomplishment;
My supervisor was really inspired and mesmerized with my dedication of working. He

commented that you are working properly and covering the fundamentals of project
before time. It’s good for us after completing this project we fulfill the success criteria
and do work on next project for company as early as you do work.
My supervisor was very happy with my daily working in the company. He admired me a
lot and said that you did not divert your attention in any way while working. I am
watching a good professional attitude in you and you are with true entrepreneurial skills.
I use to do my work in the said time period and also use to give overtime to understand
the basics of my project.
With the passage of time I use to increase my work burden and then used to complete it
with limited time span without having any work pressure.
He said that I am working so actively that while working I come to know about the loop
holes and drawbacks of the department’s working.
He thoroughly observed my working and come up with an opinion that my work is very
determined, he said that you are too patient because while working whenever you face
any problem you did not hesitate to point out it and opt for its solution.
You’re learning skills are very nice and the confidence is very good and he said that i
hope that we can have good work and will recommend you to work with us in future.
Internal Audit Conducted

on Engineering Store
Audit title: Engineering Store Items Audit Start date: 18 July 2013
counting & verification
Internal Auditor: Finance Department (CCBPL Audit End date: 28 August 2013
Gujranwala)
Reporting date: 29 August 2013
AUDIT SCOPE AND OBJECTIVES
The scope of this project covers the Audit of Engineering store items. Engineering Store
items are primarily used in the operation of Coca Cola Beverages Pakistan Limited
(CCBPL) to achieve smooth production from plant and avoid delays. Engineering Store
items mainly consist of spare parts i.e. Sensor, Belts, Nuts, Bolts, Motors, Hose, Filter
Elements, Fan, Wheel, Software Drives etc.
The overall objective of the audit was to ensure the existence and continuity of the
adequate procedures and effective System of Internal Controls related to Engineering
Store and to ensure compliance with the Standard Operating Procedures (SOP) of the
Company. The Internal Audit of Engineering store has been carried out with the specific
objective of verifying that:
 Ordering is made is accordance with the approved criteria along with the approval
of authorized personnel & all supporting documentation.
 Proper planning is made regularly for the acquisition, production, consumption &
sale of store inventory.
 Variance analysis with proper reasoning is made & reported regularly.
 Stock Counts are made regularly in accordance with Company policy.
 Proper instructions are followed by all members of stock count.
 Stock physical condition including standard procedures for arrangement/stacking

of stock are observed during stock count & compliance with the same is ensured.
 All observations of non-compliance relating to stock counts are reported.
 Inventory record is up-to-date and true representative of physical inventory.
 All difference between physical inventory & records are resolved on timely basis.
 Control weaknesses relating to inventory are identified and communicated to the

responsible person.
 All procedures related to Stores are in accordance with SOP’s.
 Proper security for store items is in place to avoid theft and malicious damage.
 Slow moving items are separately identified & reported regularly.
We have carried out the Audit of the Engineering store by performing following
procedures:
 Detailed Physical verification of stock & comparing it with SAP records.
 To ensure completeness, the process of physical verification is carried out in

two stages.
 The first stage was extracting the complete list of Engineering store
inventory and selecting items from that list for physical verification (Sheet
to Floor).
 The criteria for selection was based on
(a) High value per unit item
(b) Materials with high total values
(c) Random
 All items were locked in SAP in order to restrict Store inventory

movement in SAP.
 The second phase of physical verification was selecting items on

engineering store randomly and tracing back these items in SAP (Floor to
Sheet).
 All activities of store department were compared with SOP in order to ensure
compliance with the same
Our observations along with the recommendations thereon regarding internal control
weaknesses, which we discovered during the course of our internal audit, are given in the
ensuing pages of this report. It is important to mention here that due to the Physical
count of Spare parts of engineering store, these weaknesses may not be the only ones that
exist in the system.
KEY ANALYSIS
The analysis below is based on the physical verification of Store items based. We have
verified 760 items out of 3,800 items in sheet to floor. The summarized results of sheet to
floor verification are;
Sheet to Floor
Number of Total Percentage

Description Items Quantity Value Covered
Verified 760 7,233 172,131,799 72%
Un-Verified 3,040 486,730 66,041,372 28%
Total 3,800 493,964 238,173,171 100%
Precentage Covered from Sheet to
Floor
Verified
Un-Verified
28%
72%
The results of floor to sheet verification are as under;
Floor to Sheet
Number of Total Percentage

Description Value
Items Quantity Covered
Already Verified through Floor to

11.72%
Sheet 65 287 27,925,708
Not verified through Floor to Sheet 0.09%

79 1,055 210,794
Total Verified by Floor to Sheet 11.81%

144 1,342 28,136,503
Total Un verified 88.19%

3,656 492,622 210,036,669
Total 100.00%
3,800 493,964 238,173,171
Precentage Covered from Floor to
Sheet
11.81%
Verified
Un-Verified
88.19%
Total Excess / (Short) value of each verification phase determined on the basis of
this calculation is given below.
STOCK DIFFERENCES SUMMARY
Total Value of Total

Actual Difference - Total Value
Description Engineering Stock Extrapolated
Total Value (PKR) Verified (PKR)
(PKR) Difference (PKR)
Sheet to Floor (Short Items) (4,439,013) 172,131,799 238,173,171 (6,142,118)
Floor to Sheet (Short Items) (540,090) 28,136,503 238,173,171 (4,571,820)
Sheet to Floor (Excess Items) 777,772 172,131,799 238,173,171 1,076,178
Floor to Sheet (Excess Items) 26,964 28,136,503 238,173,171 228,245
Total Difference - Short Items (10,713,938.15)
Total Difference - Excess

Items 1,304,423
TOTAL DIFFERENCE AS PERCENTAGE OF TOTAL VALUE
Total Difference in Total

Total Value of
Description Extrapolated Engineering
Engineering Stock
Difference Items(%)
Difference - Short Items -4.50%

(10,713,938) 238,173,171
Difference - Excess Items 0.55%
1,304,423 238,173,171
AUDIT ISSUES / FINDINGS
We have carried out the Internal Audit Review by physical verification of engineering
store items in accordance with the scope of work mentioned earlier. Our detailed findings
relating to various issues are given in the ensuing pages of this report.
No. Finding / Impact Recommendations
A. LACK OF PLANNING &

MISMANAGEMENT
During the course of our internal audit

Most engineering store items are costly
review, we observed that due to lack of
therefore, proper planning should be
proper planning and mismanagement there
made for ordering the products and
are many products which are obsolete and
products should be ordered with mutual
does not have any use in foreseeable
consultation of engineer and store in-
future. Before ordering a particular item,
charge. The engineers should determine
planning in not made for determining the
the optimum level of stocks to be ordered
required quantity and expected usage.
by balancing the chances of stock outs
The lack of planning results in excessive with the cost & handling of these items.
stocks with no foreseeable usage in
engineering store. These stocks are
occupying a lot of valuable space making it
difficult to manage as well.
B. APPROVALS
The stacking of engineering store items

was not in accordance with the standards
Store in-charge should ensure proper
established by the Company. Codes from
stacking as well as labeling of products in
various items were observed to be different
order to avoid delays in operation &
or missing during stock counts. The
stock counts. These codes should be
separate file containing the location of each
reconciled with the SAP new codes.
item of engineering store was not updated
Separate file should be maintained &
for some material item codes and location.
updated regularly for new material items
The improper stacking & different coding along with their location.
results in wastage of time in counting &
finding the required stock item as well as
increases the likelihood of misplacement of
inventory.
C. SECURITY SYSTEM
The security system of Engineering Store Security Cameras should be installed at

is not adequate. There is no proper security sensitive points and entry for
at entry & exit doors. Entry for unauthorized individuals should be
unauthorized individuals is not restricted at restricted. Security guard should be hired
Store. No Security Cameras are installed at to oversee the movement of stocks.
Engineering Store.
Misplacement & theft of products is easy

as there are many items which are small
and can be taken away by anyone.
D. STORE ITEMS MOVEMENT AFTER

CLOSING TIME
The movement of store items after
The movement of items at engineering official timing should ideally be stopped
store does not stop after official timings and store items should be under lock &
and these movements are not carried out key. For urgent requirements, a person
under the supervision of anyone from should be designated from production
engineering store. After official time, store department to oversee the movements of
room is handled by security guard who has store items after official timings.
no knowledge about the spare parts. Line
engineers & Foreman picks products from
store & records on register themselves &
on the basis of this information store
officer updates the records in SAP next
day.
The stock movement without supervision

of store officer may result in discrepancies
from production department as well as
increases the likelihood of misplacement of
stock.
E. STORE ENVIRONMENT
Store room environment is not too good There must be a proper cleaning, dusting
because of dust, high temperature and no and drainage system of store room. And
ventilation. there should be moderate temperature by
installing chillers or A.C in order to
Some rubber products are melting and
secure temperature sensitive products.
some products like sensor are damaging
because of dust and Rain water leakage
from roof.
F. SEGREGATION OF DUTIES
Engineering store is managed by only one Segregation of duties is one of the key
person who is engineering store officer. components of internal control which
Store in-charge is not present all the time implements an appropriate level of check
to oversee & manage engineering store. All and balance upon the activities at various
activities related to issuance, receiving and levels. Separation of duties, as a security
recording of entries are performed by one principle, is a fundamental principle for
person. The current structure of the prevention of fraud and errors.
engineering store lacks the principle of
We recommend proper level of
segregation of duties.
segregation of duties at engineering store
Lack of segregation of duties results in in order to avoid the instances of fraud &
fraud & error as all duties are performed by error as well as reducing the burden on
one person. one person.
G. DEMAND SLIP ISSUE
We observed at some instances where There should be a proper mechanism that

demand slip with wrong product code or demand slip is properly filled with
without product description was sent by complete description, specific product
engineers to store officer.The demand slip code, date, and signature.
filled without due care results in wastage
of time as well as possibility of errors in

delivering the required item.
H. FREE INVENTORY
Free inventory stock is kept in engineering Separate record should be maintained for
store. These items have no records in SAP. these items in SAP. If these items have
These products are currently in no use of no future usage in the business, then
the company and lying idle in engineering these should be disposed-off in
store with no records is SAP making this coordination with finance department.
vulnerable towards the risk of theft &
misplacement.
I. STOCK COUNT DIFFERENCES
During physical stock count, differences of These products should be adjusted in

some items were noted in comparison with SAP after justification form management
SAP list.Some products were in excess and for differences along with future action
some products were in less quantity than plan to avoid these differences.
SAP mentioned quantity.
These items need to be adjusted to align

with SAP records. See “Annexure-A” for
instances of count differences for Sheet to
Floor & “Annexure-B” for Floor to sheet
differences.
J. RETURNS FROM PRODUCTION

LINES TO STORE
We observed that some engineering items

Store in-charge should make proper
which production engineer requires from records of these items. No item should be
the store for testing or for usage are not issued without demand slip for these
returned to store. No demand temporary issues. A separate register
slip/documentation is made for these should be maintained by store for all
temporary issues to production lines. pending items.
These temporary issues with no records

create differences in physical stock & SAP
records. Moreover, these issued items also
make this difficult to reconcile actual &
SAP records for surprise counts.
K. SURPRISE COUNTS
No surprise count is conducted by Random & surprise counts by Production

production team in order to ensure proper should be conducted. As Engineering
& updated records of engineering store. store involves technical & high value
Store officer count random items monthly, items, therefore participation from
but no documentation is made for these production department is essential for this
counts. activity to be fruitful.
Finance Department annually counts

Engineering store as per policy. But no one
from production is involved in this count.
New Knowledge Acquired;
 I have learnt about the organization’s goal and the vision. The history of the coca
cola, and their main reasons of success the secret ingredient, i have learnt about
the rules and regulations of the organization. And how ethically we should behave
in the organization.
 On which SOP the company department is working and How these departments
implement their strategies. I also learn about the SAP software that how to record
the entry and relate the stock stacking in it.
 How company use to manage their store items, their line production procedures
and how they plan to purchase items which they need in the store. How they use
to make their purchase requisition and how store items use to match with the
SAP.
 How 3 gates of company are responsible about 3 different operations of stock

moving inward and outward, how gate officers deal with the problem if occur, I
also learnt about the stock count.
 I get to know about the purchase requisition of the company and the whole
procurement department working.
 I learned how to count the stock of fixed assets and how to observe the work
which is not properly done by the organization employees.
 I also understand the credit control system of CCBPL. I have learnt how to verify
the credit limits of the customers with the proposed limits.

I came to know about the aspects of fixed assets distribution to different
departments of the company.

Allocation of vehicles to different department’s executives and their maintenance
expenses.

Company delivery process to different areas of city.
 I came to know the fixed assets of the company and their point of installation.
 Matching fixed assets of other territory with the system.
 Documentation of employees and preparing schedule of meetings for different

departments.
How internship experience impacts my career.
Finding work can be a real challenge, especially if you don't have any experience. Yet to
get experience you must first find a job. It's a nasty catch that can be difficult to get
around but an internship is a good way to do it.
Internships provide work experience opportunities to university students. Employers are

willing to hire interns with little or no experience. However, the benefits of doing an
internship go far beyond your pay cheque.
Internship in a company like Coca Cola helped me a lot in enhancing my knowledge and
boosting up my abilities. I explored many things there which will help me in my career.
Every experience helps you to define and redirect your career path. My internship
experience at Coca Cola impacts my career in the following way;
 It helps me in making industry contacts. As it is said;
‘its not about what you know; it’s about who you know’
 Actual industry experience is sure to be a valuable asset. It developed the

potential to make me stand out from the competition.
 The experience has not only help me to develop the skills needed to work in the
industry in fact working on real projects for a real organisation has also provided
the interpersonal skills that need to work effectively with others —
 It has boosted confidence in my own abilities.
 Internship automatically made me more marketable; as now i may require less
training and are assumed to be able to handle more responsibilities.
 In addition to the specialized skills of my field, transferable skills are generally
required at any job, e.g. communication/interpersonal skills, computer
proficiency, and team work.
 Gained practical experience, by applying methods and theories learned in classes.
 My experience would help me to possibly earn money.
 During my tenure in Coca Cola I have noticed that many employers prefer or
require applicants who have done an internship or relevant work experience and
in many of the more competitive job markets it has set me apart from the others.
Conclusions &
recommendations for
improvement
Conclusions;
Working with such a company on ground level gave a rich experience about the ground
realities of beverage industry. Understanding the orgamization and moulding the novice
thoughts to their benefit is another experience. The ground level is as real and harsh side
reveals at times.
Understanding the working culture and witnessing the change in system during our work
period inculates high values of organization into us.
The study makes us conclude that, Coca Cola has the biggest consumer market against
any other beverage producing company. It is the number one brand just because people
love it.
Company has grand inventory storage system equipped with up to date technology.
Millions and trillions of inventory stock is maintained and ordered on daily basis and
delivery of their product to specialized routes is made possible.
Finance department of company is also at its best to deal with the financing activities of
the company. It starts from making an order of product to its delivery.
Working in association with Coca Cola feels us very proud to be a part of such a lovable
global brand.
Recommendations;
Some of the recommendations for the company on the base of my experience here are as
follows;
 All observations of non-compliance relating to stock counts should reported.

 Inventory record should be up-to-date and true representative of physical
inventory.
 All difference between physical inventory & records should resolved on timely
basis.
 Control weaknesses relating to inventory, identified and communicated to the
responsible person.
 Leverage the Company assets by brand extension into water-based, slightly
sweetened refreshment drinks to meet more health-conscious consumers.
 It is recommended that proper level of segregation of duties at engineering store
in order to avoid the instances of fraud & error as well as reducing the burden on
one person.
 Random & surprise counts by Production should be conducted. As Engineering
store involves technical & high value items, therefore participation from
production department is essential for this activity to be fruitful.
 For effective recording free inventory system must be recorded in SAP.
 Develop more health conscious products.
 Marketing team should try to increase the availability of coke in rural areas.
 Coca Cola should think about producing coke can locally, as currently they are
only smuggled from abroad and sold at high prices. The Coca Cola company can
capitalize on this factor.
References & Sources used

 http://www.coca-colacompany.com
 www.ccbpl.com.pk
 Dawn newspaper
 Wikipedia

Audit Annexure
Coca Cola Beverages Pakistan Limited (Gujranwala)

Physical Stock Count Differences of Engineering Store Audit
Floor to Sheet
Sr Material
Material BUn SLoc Physical SAP Diff Remarks
# Description
306-002- CARTRIDGE CO2
1 ST 3004 - 6 Issue
872 EPCO2/2 10 10
306-007- POWER SUPPLY
2 ST 3004 (4) 4 less
599 24VDC 5AMP 6 10
306-011- SMI MF500684
3 ST 3004 1 1 excess
041 BELT 2 1
KRONES
306-014-
4 0900158424 ST 3004 2 2 less
652 3 5
VALVE BLOCK
306-022-
5 GAS 407C ST 3004 (4) 4 less
030 1 5

Final Coke Project by Qasim

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Coca Cola Beverages Pakistan Limited

 Mr. Naeem Hayat

 Finance & Inventory

1|Page Gift University

Objective of internship ------------------------------------------------------------- 8

Executive Summary ------------------------------------------------------------ 9

Vision Statement ---------------------------------------------------------- 11

Mission statement ---------------------------------------------------------- 12

Coca Cola Icecek ---------------------------------------------------------- 14

Coca Cola Icecek Goals------------------------------------------------------------- 15

History of beverages sector--------------------------------------------------------- 16

Beverages sector in Pakistan------------------------------------------------------- 17

Culture of Coca Cola------------------------------------------------------------- 18

Time line of Coca Cola------------------------------------------------------------- 27

Overview of the organization-

2|Page Gift University

3|Page Gift University

Profit & Loss account------------------------------------------------------50

Horizontal & vertical analysis ------------------------------------------56

Major competitors of the organization---------------------------------69

Success and failure of different products ------------------------------71

Major HR Policies and practices-----------------------------------------76

Future prospects of the organization-------------------------------------83

Overview of the Department(s) Where You Served Internship---------------88

Number of employees working in the Department-------------------91

Functions and operations-------------------------------------------------92

Critical analysis of the management patterns--------------------------104

4|Page Gift University

Internal Audit --------------------------------------------------------109

New Knowledge Acquired------------------------------------------124

How internship experience impacts you career. ------------------127

Conclusions & recommendations for improvement

References & Sources used---------------------------------------------------------132

5|Page Gift University

6|Page Gift University

7|Page Gift University

Internship is an opportunity to complement the formal education with career-related

Coca Cola Beverages Pakistan Limited is an organization that believes in best

8|Page Gift University

9|Page Gift University

 To refresh the world...

 To inspire moments of optimism and happiness...

 To create value and make a difference.

Partners: Nurture a winning network of customers and suppliers, together we create

 Planet: Be a responsible citizen that makes a difference by helping build and

 Profit: Maximize long-term return to shareowners while being mindful of our

Our Winning Culture

Live Our Values

 Leadership: The courage to shape a better future

Focus on the Market

 Focus on needs of our consumers, customers and franchise partners

 Possess a world view

 Focus on execution in the marketplace every day

 Act with urgency

 Remain responsive to change

 Have the courage to change course when needed

 Remain constructively discontent

Act Like Owners

 Be accountable for our actions and inactions

 Steward system assets and focus on building value

 Learn from our outcomes -- what worked and what didn’t

 Inspire creativity, passion, optimism and fun

History Of beverages sector