NATIONAL COLLEGE OF BUSINESS

ADMINISTRATION & ECONOMICS

WCC
A PRESENTATION ON

VERTICAL, HORIZONTAL & RATIO

ANALYSIS OF PACKAGES LIMITED

FINANCIAL MANAGEMENT
PRESENTED TO:
PROF. YASIR HASSAN

PRESENTED BY:

Student Id. Student Name

1. BS-FA02-10 FARIA ANWAAR

2. BBS-FA01-O5 MOHSIN KHAN

 FINANCIAL MANAGEMENT

Financial management refers to the efficient and

effective management of money (funds) in such a
manner as to accomplish the objectives of the
organization. It is the specialized function directly
associated with the top management.
 INTRODUCTION

Packages Limited is Pakistans leading packaging

solution provider. Our job is to deliver high quality
Packaging in the most efficient, profitable and
sustainable way.
We are primarily a business to business company and
our customer base includes some of the worlds best-
known branded consumer products companies
across industries. We are also a leading manufacturer
of tissue paper products.
Our leadership position in tissue products is a result of
our ability to offer products manufactured under
highest standards of hygiene and quality to meet the
household and cleanliness needs of our consumers.
We provide a complete range of tissue
 HISTORICAL OVERVIEW
Packages Limited was established in 1957 as a joint venture
between the Ali Group of Pakistan and Akerlund & Rausing of
Sweden, to convert paper and paperboard into packaging for
consumer industry.
Over the years, Packages has continued to enhance its facilities
to meet the growing demand of packaging products. In 1968,
with IFC participation, Packages integrated upstream by
establishing a Pulp and Paper Mill with a capacity of 24,000 tons
per year based on waste paper and agricultural by-products i.e.
wheat straw and river grass.
With growing demand the capacity was increased periodically
and in January 2003, total capacity was nearly 100,000 tons per
year. In 1982, Packages modified a paper machine to produce
tissue paper in response to growing awareness and demand for
hygienic and disposable tissues. T
he Rose Petal brand name was launched with facial tissues and
was later expanded to include toilet paper, kitchen roll, and table
napkins.
 PRODUCT LINE

PACKAGING DIVISION

Packages provides multi-dimensional and multi product packaging

solutions to its clients that are involved in manufacturing consumer
products across industries
The Packaging Division comprises of two business units based on
packaging material categories:
Folding Cartons
Flexible Packaging
 FOLDING CARTONS
With over 56 years of experience in providing reliable service and quality,
Folding Cartons business provides a wide range of packaging products
to tobacco, pharmaceutical, Fast Moving Consumer Goods, personal &
home care and food industries. Folding Cartons business is equipped with
state of the art machinery and a dedicated and qualified workforce that
is supported by strong backward and lateral integration. These factors
contribute to provide high volumes and consistent quality at a
competitive price for our customers.
 FLEXIBLE PACKAGING
To accommodate increasing demand for sophisticated packaging,
Packages established a Flexible Packaging business unit in 1986 at its
Lahore Plant. Flexible Packaging business provides a one stop packaging
solution by providing high quality detailed graphics in Flexographic and
Rotogravure printing. Flexible packaging business also provides lamination
for plastic films, aluminum foil, paper, multi-layer blown film extrusion for
high speed technology in multi-lane slitting, standalone spout inserted
bags, poly-bags, zipper-bags, sleeves and ice cream-cones.
 CONSUMER PRODUCTS DIVISION
Packages started commercial production of tissue and other consumer
products in 1982 at the Lahore Plant. We currently provide a complete
range of tissue and personal hygiene products that are convenient, quick
and easy to use; ranging from facial tissues to tissue rolls, table napkins,
pocket packs, kitchen rolls, wet tissues, party packs, paper plates, cups
and adult diapers. We provide consumers complete convenience with
tissue and paper products for every occasion. With its high-quality tissue
and consumer products, business unit makes life more comfortable for
consumers every day.
 BRANDS

Key brands of Consumer Products divisions are:

Rose Petal
Tulip
Double Horse
Tena
MISSION STATEMENT
VISION STATEMENT
 ORGANIZATIONS SITUATION IN
2014
In 2014, the company invested in a new offset printing line in
continuation of its efforts to remain abreast of improved
technological development in the Packaging business.
The new offset printing line commented its commercial operations
during the first quarter of 2014 and has made available capacity to
meet growing customer demands in the folding carton business.
As part of its asset and income diversification strategy, the
company, in May 2014 initiated development of a high quality retail
mall at its Lahore land through its wholly owned subsidiary,
packages construction (private) limited.
 ORGANIZATIONS SITUATION IN
2013
The Joint Venture Agreement with Store Enso OYJ Group, signed in 2012,
was implemented in 2013 and Packages completed the transfer of
assets and related obligations of Paper & Paperboard and Corrugated
business operations to Bulleh Shah Packaging (Private) Limited along
with cash equity injection.
Packages now holds 65% equity in Bulleh Shah Packaging (Private)
Limited. The joint venture partner, Store Enso OYJ Group, is actively
involved in providing technical expertise to
further enhance the Paper & Paperboard
and Corrugated business operations.
 ORGANIZATIONS SITUATION IN
2012
To enable continuous growth and technical development in the Paper
& Paperboard segment, the Board of Directors of Packages Limited
have signed an agreement on September 17, 2012 with Store Enso OYJ
Group (Store Enso) of Finland entering into 50/50 Joint Venture in its
100% wholly owned subsidiary Bulleh Shah Packaging (Private) Limited
[formerly Bulleh Shah Paper Mill (Private) Limited] (BSPL).
This Joint Venture Agreement would enable greater focus on Paper &
Paperboard and Corrugated businesses which are integrally linked and
have specific capital and technology requirements.
As part of its efforts to remain abreast with
improved technological developments in
the Packaging business, the Company has
invested in a New Rotogravure Machine for
its Flexible Packaging Business with total
estimated project cost of Rs. 326 million.
BALANCE SHEET
AS ON DECEMBER 31, 2014
VERTICAL ANALYSIS
BALANCE SHEET
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

2014 2013 2012

80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

2014 2013 2012

HORIZONTAL ANALYSIS
BALANCE SHEET
-100.00%
100.00%

20.00%
60.00%
80.00%

-80.00%
-60.00%
-20.00%
0.00%

-40.00%
40.00%
Issued, subscribed and
Reserves
Preference shares /
Accumulated profit
Long term finances
Liabilities against assets
Deffered taxation
Retirement benefits
Deferred liabilities
Current portion of long-
Finances under mark up
Derivative financial
Trade and other payables
Accrued finance costs
Liabilities of disposal group
TOTAL LIABILITIES
2013-12
2014-13
1400.00%

1200.00%

1000.00%

800.00%

600.00%

400.00%

200.00%

0.00%

-200.00%

2014-13 2013-12
PROFIT & LOSS ACCOUNT
AS ON DECEMBER 31, 2014
PROFIT & LOSS ACCOUNT
VERTICAL ANALYSIS
 20.00%
60.00%
80.00%

0.00%

-40.00%
-20.00%
120.00%

40.00%
100.00%

Local sales
Export sales
Sales tax & excise duty
Commission
Net Sales
Cost of sales
Gross profit
Administrative expenses
Distribution and marketing
ther operating expenses
Other Income
Profit from Operations
Finance Cost
Investment income
Reversal of Impairment on
Profit before taxation
2014

Taxation
Profit for the year from
2013

Loss for the year from

Profit for the year
2012
 -200.00%
-100.00%
100.00%
300.00%
400.00%

200.00%

0.00%
Local sales
Export sales
ess: Sales tax & excise duty
Commission
Net Sales
Cost of sales
Gross profit
Administrative expenses
Distribution and marketing
Other operating expenses
Other Income
Profit from Operations
Finance Cost
Investment income
Profit before taxation
Taxation
2014-13

Profit for the year from

Loss for the year from
Profit for the year
2013-12
 RATIO ANALYSIS
FOR THE YEAR 2014, 2013, 2012
 CONCLUSION

Above mentioned figures tells that packages limited in progressing

day by day.