“A Project of Business Law”

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“A Project of Business Law”
Project Report On Application of Business and Labour Law in Faisalabad

By Muhammad Muniam Roll No. 10760 MBA IV (Morning)

Department of Management Sciences National University of Modern Languages Faisalabad Pakistan

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11. 14. 10. 12. 01. 15.“A Project of Business Law” December 2011 Table of Contents Sr. 06. 03. 04. 20. 17. 19. Subject Acknowledgement Dedication Executive Summary Introduction Performance Statistics Core values Vision Mission Products Location Business laws Labor Law Child Labor Implementation of labor laws Health of workers Safety of workers Observation Suggestion Conclusion Annex Pg # 5 6 7 8 9 11 12 12 15 17 18 19 20 21 22 23 25 26 27 28 4 . 08. 13. 18. 07. 05. 09. 02. 16.

precious suggestions. Shahbaz Fareed who always helped us in our studies when we needed. reward less help. After I am thankful to my parents and family whose prayers encouraged me to complete my task. gracious and merciful who enable me to perceive higher ideas of life and helped me throughout my life especially in writing this report and all blessing to his favorite PROPHET MUHAMMAD (PBUH) who is the greatest personality of this universe. constant encouragement and personal interest and kind guideline that enable to write the report. I am also extremely thankful to all of my teachers for their sympathetic treatment.“A Project of Business Law” ACKNOWLEDGEMENT First of all I offer my humble sense to “ALL MIGHTY ALLAH” The most beneficial. At the end I would like to say special thank of Mr. 5 .

To my Parents. Who always prayed for my success and their love and affection have always been a source of inspiration for me. The motivation for what I have done. To my Friends.“A Project of Business Law” Dedication To my Teachers. Who share their knowledge and experience with me in learning process 6 .

Ltd.  Observation  Suggestion It includes the application of labor laws in Rafhan Maize Products Co. How they applicable labor laws on their employees? 7 . Ltd.“A Project of Business Law” Executive Summary: Executive summary summarizes the  Labor Laws  Its application in Rafhan Maize Products Co.

Rafhan Maize Products Company Ltd. industrial starches. AMISOL. 8 . It has started its business in 1853. meals. The Company processes thousands of tons of corn every year to produce high quality food ingredients and industrial products. in Pakistan. liquid glucose. and CERELOSE Dextrose and MOR-SWEET high maltose syrup.The Company's principal activities are to produce corn oil. germ cake and hydro. The Company also manufactures a wide-range of co-products such as gluten feeds. The brand and products of the Company are PENETROSE. gluten meals and other corn related products. about 1100 kilometers north of Karachi. is located at Faisalabad.“A Project of Business Law” INTRODUCTION: Rafhan Maize Products Co Ltd. dextrose. dextrin. TEX-OFILM. Rafhan Maize is the pioneer in producing diversified type of starches and sweeteners for multiple applications in more than 50 types of industries.

34 9 .T.691.08 9.“A Project of Business Law” Performance Statistics (Million Rupees) Share Capital .46 995.92 Tangible Fixed Assets: 777.27 Depreciation: 80.77 Financial Expenses: 73.26 21.23 Deferred Taxation: 66.67 2.45 1771.38 Shareholders Equity: 987.39 64. Loans: 1.31 Total Assets: 2202.71 Operating Profit: 571.07 Earning Per Ordinary Share (Rs): 33. Profit & Payout: Sales: 2.78 L.93 Other Income: 35.86 Profit After Taxation: 307.82 926.27 Deferred Cost: 7.03 Profit Before Taxation: 492.16 Current Assets: 1.12 67.417.03 37.85 712.36 Reserves & Profit: 894.146.16 270.96 Dividend Cash 135% (1999 130%): 124.26 29.39 2.T.67 765.805.24 1.69 120.81 580.21 804.62 Current Liabilities: 1. Debts: 2.74 L.89 485.Paid-up: 92.94 Gross Profit: 671.97 410.51 Sales.

000 Actual Days Worked: 348 345 Actual Grind: 223.88 97.51 Days Receivables: 17 19 Days Inventory: 191 118.C.A.07 Asset Turn Over Ratio: 1. (%): 29.136 10 . (%): 13.24 1.O.O. (%): 31.06 R.94 10.00 Financial Ratios: Price/Earning Ratio: 6.27 1.67 R.38 18.11 33.91 Book Value Per Share: 106.94 15.500 217.57 Operating Margin (%): 20.O.05 Net Profit Margin (%): 10.15 Debt/Equity Ratio: 0:100 0:100 Current Ratio: 1.E.29 R.10 18.65 Gross Profit Margin (%): 23.532 214.71 Price/Book Value Ratio: 2.10 Plant Capacity & Production (Metric Tons): Average Grind Capacity Per Day: 650 620 Grand Capacity Per Year of 350 Days: 227.“A Project of Business Law” Share Price (Rs) Dated 7/12/2000: 230.E.94 21.

We consistently focus on our business to create economic value today and into the 11 . RESPECT FINANCIAL SUCCESS We deal with and treat others the way we want to be dealt with and treated.“A Project of Business Law” CORE VALUES: Define and direct every decision we make and every action we take at Rafhan Maize. which produces consistently ethical behavior. • INTEGRITY We adhere to a code of conduct. • • future. • EXCELLENCE We do the right things in a superior manner while striving for continuous improvement.

” 12 .“A Project of Business Law” Vision Statement “To be the premier of refined corn based products and ingredients in the region” Mission Statement “To grow business consistently through positive relationship with customers to attain full customer satisfaction and to bring continuous improvement by adopting only those business practices which add value to our customers. employees and share holders.

“A Project of Business Law” Products GLOBE CORN STARCHES CORAGUM STARCHES RAFHAN MAIZE STARCHES SNOWFLAKE CORN STARCHES SNOWFLAKE CORN FLOUR GLOBE CORN STARCHES SNOWFLAKE MODIFIED STARCHES PENETROSE MODIFIED STARCHES AMISOL OXIDISED STARCHES Q-TAC CATIONIC STARCHES TEX-O-FILM CORN STARCHES TEX-O-FILM MODIFIED STARCHES CORATEX-W SPECIALTY STARCH CORATEX-P SPECIALTY STARCH GLUGELPOWDER GLUES RAFHAN DEXTRINS CORAGUM DEXTRINS CORAGUM POWDER/LIQUID ADHESIVES CERELOSE DEXTROSE MONOHYDRATE GLOBE GLUCOSE (CORN SYRUP) RAFHAN LIQUID GLUCOSE MOR-SWEET HIGH MALTOSE SYRUP NU-BRU HIGH MALTOSE SYRUP RAFHAN GOLDEN SYRUP RAFHAN LIQUID CARAMEL COLOUR ENZOSE HYDROL 13 .

“A Project of Business Law” RAFHAN MAIZE GLUTEN MEALS/FEEDS PRAIRIE GOLD MAIZE GLUTEN MEALS RAFHAN CORN GERM MEALS BUFFALO MAIZE BRAN RAFHAN MAIZE OIL CAKE MAZOFERM MAIZE STEEPING 14 .

NON-FOOD. ADHESIVES. PHARMACEUTICAL. TEXTILE. BAKING. REED INK. TEXTILE SIZING (MODERN WEAVING) TEXTILE QUALITY FINISHING. SYRUPS & SQUASHES. TOBACCO. PHARMACEUTICAL. SNACKS. CONFECTIONERY. PHARMACEUTICALS. BISCUITS. PREPARED ADHESIVES. TANNING. TEXTILE (SIZING & FINISHING). TOBACCO. PAPERMAKING. 15 . KULFI FALUDA. CHEMICALS. JELLY CONFECTIONS. BREWING. SWEET-MEATS. SURFACE SIZING. CARPET BACK SIZING. CONFECTIONERY. PAPER CONES TEXTILE SIZING & FINISHING. PAPER SACKS. CONFECTIONERY. DESSERTS. PHARMACEUTICAL. FOOD ENERGY DRINKS. KETCHUPS. ADHESIVES. BAKING. CORRUGATION. LIVESTOCK FEEDS. CONVENTIONAL FOODS. PAPER (BEATER ADDITIVE. CHEMICALS. SPIRAL TUBE WINDING. CORRUGATION. COATING). BEVERAGES. CHEMICALS. BEVERAGES. FOUNDRY. PAPER.DESSERTS. FOOD. POULTRY FEEDS. ICED. FERMENTATION. PAPER. FOOD. AQUA FEEDS CATTLE FEEDS AND OTHER LIVESTOCK FEEDINGS. CONFECTIONERY. FOUNDRY PAPER CONVERSION. PROCESSED FOODS. CONFECTIONERY. BAKING. ADHESIVES. FOOD. SYRUPS & SQUASHES. ICED-DESSERTS. PAPER CONVERSION. LAMINATION. BAKERY.“A Project of Business Law” Consumer Industries TEXTILE (SIZING & FINISHING). PICKLES. BAKERY. BREADS.

“A Project of Business Law” POULTRY/CATTLE/FISH FEEDS. ANTIBIOTICS. 16 .

I.74000 Pakistan Tel: (0092) 21-2442516. Ltd. 2427731 Fax:(0092) 21-2428651 Registered & Regional Office: 17 . Corporate Headquarters & Plant: Rakh Canal East Road. Chundrigar Road.O.I. P. Finlay House. Faisalabad 38060 Pakistan Tel: (0092) 418540121-22-23 Fax:(0092) 418711016 1st Floor. Box 62.“A Project of Business Law” Location Rafhan Maize Products Co. Karachi .

or buying a small business. commercial paper. or dealing with contracts. business organizations. Other popular areas include insurance. among others. agency and employment law. sales.“A Project of Business Law” BUSINESS LAWS Business law encompasses the law governing contracts. selling. The laws aim to protect fair business practices and due process rights for aggrieved workers and others. managing a business. which governs sales and commercial paper. has been adopted in some form by almost all states. There are agencies at the state and federal level which administer the law in such issues such as employment affairs and consumer and credit protection. The Uniform Commercial Code (UCC). Business law may include issues such as starting. and consumer and creditor protection. dealing with employees. property. wills and estate planning. 18 . and bailment.

Second.“A Project of Business Law” LABOR LAWS IN FACTORIES Labor law (or employment law) is the body of laws. there are two broad categories of labor law. individual labor law concerns employees' rights at work and through the contract for work. In most countries however. working people and their organizations. and restrictions on. employers and employees. Labor rights have been integral to the social and economic development since the industrial revolution 19 . First. administrative rulings. The labor movement has been instrumental in the enacting of laws protecting labor rights in the 19th and 20th centuries. employment laws related to unionized workplaces are differentiated from those relating to particular individuals. employer and union. and precedents which address the legal rights of. collective labor law relates to the tripartite relationship between employee. As such. no such distinction is made. it mediates many aspects of the relationship between trade unions. In Canada. However.

Not all work done by children should be classified as child labor that is to be targeted for elimination. socially or morally dangerous and harmful to children.“A Project of Business Law” CHILD LABOR The term "child labor" is often defined as work that deprives children of their childhood.  obliging them to leave school prematurely. It refers to work that:  is mentally. Children’s or adolescents’ participation in work that does not affect their health and personal development or interfere with their schooling is generally regarded as being something positive. their potential and their dignity. as well as among sectors within countries. 20 . the type and hours of work performed. and that is harmful to physical and mental development. or  Requiring them to attempt to combine school attendance with excessively long and heavy work. exposed to serious hazards and illnesses and/or left to fend for themselves on the streets of large cities – often at a very early age. Whether or not particular forms of "work" can be called "child labor" depends on the child's age. In its most extreme forms. and  interferes with their schooling by:  depriving them of the opportunity to attend school. physically. separated from their families. assisting in a family business or earning pocket money outside school hours and during school holidays. This includes activities such as helping their parents around the home. the conditions under which it is performed and the objectives pursued by individual countries. The answer varies from country to country. child labor involves children being enslaved.

3:-Ventilation and temperature:We have many ventilators according to the requirement of each department we have underground air system which keep the temperature normal in the entire production department. Overcrowding is injurious to the health of work men. 6:. We provide them dust mask which keep them safe from dust and fumes.“A Project of Business Law” LABOR Laws Implemented In Rafhan Maize Products Co. 5:-Overcrowding To avoid overcrowding we install each machine at a reasonable distance. as clean atmosphere keep away workers from diseases. Health of workers 1-Cleanliness:Rafhan Maize Products Co. their duty is to clean each department daily. Dirt and refuse are removed daily by effective methods. 2:-Disposal of water:As we use various dyes/chemicals which are harmful for health. Ltd. so we keep treatment plant which clean water from the effect of these harmful dyes/chemicals before disposal. Ltd.Lighting:- 21 . 4:-Dust and fumes To keep away our workers from dust and fumes. hire employees for cleaning purpose.

Ltd. half charges of the canteen are born by the employer and other by the labor. 22 . 9:-provision of canteen:As Rafhan Maize Products Co.drinking water:We bring water from canals which are good for health.vaccination & other health care programmer:We get the help of expert doctor for various type of vacation more over us test the blood group of all the employees so we faced no problem if we face emergency. 7:.“A Project of Business Law” The proper arrangement of lighting is available at every machine. 10:-welfare officer:Rafhan Maize Products Co. 8:. process has more than 1000 employees so it has its own canteen. so that workers do not feel stress on their eyes while working. Moreover we have a softener plant which makes the water drinkable. Ltd is a big unit so we have our welfare officer whose responsibility is to look after the various problems of labor. 11:-other facilities:We provide different type of juices to our employees in summer season to make themmore effective for good work.

3:-use of glasses:We assure the use of glasses for those workers which bring dangerous chemicals 4:. 6:-pressure point:The boiler plant is very dangerous plant.“A Project of Business Law” Safety of workers Rafhan Maize Products Co. 2:-precautions regarding dress:We advice our workers to wear pent shirt so they can safe from machines. 1:-precautions against fire:We have many fire points at difference places in our mill. 23 . We insure the use of tight dress. steps and stairs are of sound quality and clean so people walking on it remain safe from dangers. 5:-employment on dangerous machines:We hire the technically qualified person for machines whose operation is dangerous in nature. 7:-safe mean of access:This is very important that all floors. More over us give training to our workers regarding use at fire machine. Ltd keeps various precautionary measures for the safety of workers. if this is not in good position it can blast like as bomb so it is very necessary to maintain their pressure below danger line.use of long shoes and gloves:We assure the use of long shoes and gloves for the workers who work with dangerous liquid chemicals so that they remain safe from those chemicals.

9:-implementation of rules:We make assure that all the safety measures are working properly or not. 10:-explosive and inflammable dyes and chemicals:There are many chemicals that are used which are explosive or inflammable nature.“A Project of Business Law” 8:-use of machine:All the workers are advised not to lift weight more than their ability. We keep empty drum for this purpose. 24 . we use lifter to lift heavy weights. If workers are not following precautionary measures management force them to act according to rules.

 There is not good stability in the organization relating to the order meeting.  There is a fluctuation in the working (production) of the firm. as someone are gaining so much for nothing & someone are not gaining sufficient for so much.  The use of information technology is not as per international standard.“A Project of Business Law” OBSERVATIONS The following points were observed by me during my visit and these are kind of major ones I could find as the overall performance of the company is really satisfactory and furthermore nothing is perfect or gives 100% results.  The internal customers (employee) are not satisfied about their jobs. 25 .  Major part of employees are not satisfied.  Professionalism is not considered important.  Huge gap between the juniors & seniors.

o Local processing should not be preferred then export. o To create an environment which attracts and supports the employees or say employee welfare should be taken care of. is losing its benefits in lower raw material prices. o The company should control the finance. There is a need to check the trend of further increases both by policy. Ltd. The utilizing the plant capacity in full can reduce fixed cost. 26 . Ltd. which have been created on account of internal weaknesses to improve quality productivity and production efficiency to be desired levels.“A Project of Business Law” SUGGESTIONS The Rafhan Maize Products Co. o The central decision making system which is now a days the weakness of 80% of our textile industry should be taken care of or at least some improvements should be made to up-grade this kind of system. o Allocating a specific budget should enhance the promotional activities of Noor Fatima. while energy cost and credit cost have increased considerably. o The cost of production of company should be controlled. support by the Government and it self. The suggestions that particularly relate to Rafhan Maize Products Co. are as followings. The major challenges are to enhance the competitiveness of the mill. o The sale of company should increase by searching new markets.

But there are also some problems in the organization that it must be worked out in order to gain some competitive advantage and to get the top position in the world.“A Project of Business Law” Conclusion After studying the entire project I have concluded that Rafhan Maize Products Co. that no one can get bored by doing the same activities at all time. The main thing is that there is weekly report system that every GM is responsible to respond CEO. 27 . is a good for continuous learning. Ltd. There is a continuous learning process that enables the employee to see the picture of the organization in different paradigm and bring up with new solutions.

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