Packages Internship Report

Training Program

DEDICATION

I DEDICATE ALL MY WORK TO ALL MY TEACHERS,

MY FRIENDS

AND MY FAMILY

WHO ARE

ALWAYS THERE WHENEVER I NEEDED THEM.

ACKNOWLEDGEMENT

Hailey College of Commerce

Training Program

All if thanks are due only to almighty ALLAH, the most gracious, and the most merciful who enabled me to complete this job. I would like to express my sincere gratitude to my Mr. Abdullah Ghole (I/c Funds Sec.), Mr. Hafiz Ali Akhtar of Funds Section & Mr.Shahid Imran Ch. Of Sales Tax section for her constant encouragement, sincere advice, suggestion and important discussion to valuable accomplish of my training program. Without their guidance, I would never be able to gain the confidence and precision in my work. I also wish to thank to all other people without whose responses this success would not have been possible. And, of course, I am most indebted to my parents without their support, encouragement and dua this work would have never been possible.

Preface


Training Program

Hailey College of Commerce, University of the Punjab has been an institution of honor and discipline. It has always created a lot of potential in the students for studying and improving their skills for dealing in the practical life.

The Bachelor of Commerce program here at the Hailey College of Commerce is equipped with 6 weak practical training as internship. This Internship and its viva-voce, awarded by 100 marks is a complementary part of any company, business organization and business related enterprises or registered firms working anywhere in Pakistan. No concern with the business of the business, internee has to prepare an internship report about organization and the work done by the student thereto, at the end of his/her internship.

Here I KHAWAR AHMED being the student of B.Com (Hons.) in Punjab University as its study center Hailey College of Commerce College Roll # 763, during Session 2004-2008, completed my Internship at PACKAGES LIMITED. At the end of my practical training. I have prepared an internship report elaborating the details about the company and its work done thereto.

At the end of this remarkable session I would like to thanks all of them who encouraged me a lot during my study course.

Khawar Ahmed

B.Com (Hons.)

Executive Summary


Training Program

PACKAGES LIMITED was established in 1957 and is the oldest composite Packaging unit of Pakistan packaging consumer products. Backed by the organizational expertise of Syed Babar Ali leading Industrial and commercial company in Pakistan now surging ahead of its competitors in the field of Packaging.

This report is split into various portions, 1st section consists of Introductions and History, second consists of Packages Management System, third for field of activates, four of work done by student... I analyzed this project in the light of Financial Analysis.

This report also consists of a comprehensive financial analysis of packages regarding its profitability, liquidity position, management performance, etc indicating its market strength and position.

I discussed specially Funds & Sales Tax Section of finance department in detail because I spend six weeks in these departments as an internee. So this report is an amalgam of the specific information as well as my personal experience about the organization.

PACKAGES LIMITED


Training Program

INTRODUCTION

HISTORY

Packages Limited was born out dream to set in Pakistan an industry of excellence based on local raw material and talent. In July 1954 while on a visit to Sweden, Syed Babar Ali the first Managing Director and now Advisor to Packages Limited negotiated with the setting up of a packaging plant in Lahore with the collaboration of AB Akerlund and Pausing (Sweden). This project was established with paid up capital of Rs. 4.49 Millions.

With foreign requirement and expertise and Pakistani capital and labor, Packages Limited was in business by May 1957. Around each of the 22 Swedish experts set-to run the plant and train Pakistani personnel a group of young educated trainees was set up (6 ,-learn the new technologies and working methods.

Over the years, the Company continued to enhance these facilities to meet the growing demands of packaging products. It was spread over 105 acres. Additional capital was raised from sponsors International Finance Corporation and from the public in making the total paid up capital to Rs. 31 millions in 1965.

Packages Limited in the beginning helped consumer industry by providing packing solutions in the form of cartons for cigarette, tea, confectionery, pharmaceutical and soap industry. However paper and board supplied by local mills did not meet the quality requirements of their customers. In 1965 it was decided that backward integration was necessary for Packages Limited to sustain continuous production of quality packaging and commissioned its own paper mill in 1968 for self-sufficiency and quality product development with an installed capacity of 24000 tons of paper and paperboard. Waste paper and agricultural raw materials such as wheat straw, and river grasses are used together with imported wood pulp in the paper mill.

Continuous expansion in response to growing demand had increased the installed capacity to 50000 tons of paper and paper board by 1994. With growing demand the

Capacity was increased periodically and in January 2007 was nearly 100,000 tons per year.


Training Program

Starting from 1970 Packages Limited also extended the expertise acquired to other Third World countries Management and technology were exported to Indonesia, Tanzania, Kuwait, Saudi Arabia, Zambia, Somalia and Nigeria where packaging concerns were helped to successfully run their operation.

Today, packages Limited is considered among the leading fully integrated packaging complexes in Indonesia.

MISSION STATEMENT

To be a market leader by providing quality products and superior service to our customers, while learning from their feedback to set even higher standards for our products.

To be a company that continuously enhances its superior technological competence to provide innovative solutions to cater to customer needs.

To be a company that attracts and retains outstanding people by creating a culture that fosters openness and innovation, promotes individual growth, and rewards initiative and performance.

To be a company which combines its people, technology, management systems, and market opportunities to achieve profitable growth while providing fair returns to its shareholders.

To be a company that endeavors to set the highest standards in corporate ethics in serving the society.


Training Program

ENVIRONMENTAL POLICY

Packages is committed to the environment. We realize that we live in a world where resources are finite and the eco-system has a limited capacity to absorb the load mankind is placing on it. That is why we make every effort to make sustainable development a reality. The numerous projects and plants implemented in and around our site bear ample testimony to our dedication.

Some of our objectives are to increase recycling rates, improve effluent and waste management, and reduce water loss. These and other environmental concerns are exemplified in our environmental policy, which every employee is expected to uphold and implement.

Environment, Health and Safety (EH&S) Policy


Training Program

Packages Limited shall:

Minimize its environmental impact, as is economically and practically possible

Save raw materials including energy and water, avoid waste

Ensure that all its present and future activities are conducted safely, without endangering the health of its employees, its customers and the public

Develop plans and procedures and provide resources to successfully implement this policy and for dealing effectively with any emergency

Provide environmental, health and safety training to all employees and other relevant persons to enable them to carry out their duties safely without causing harm to themselves, to other individuals and to environment

Ensure that all its activities comply with national environmental, health and safety regulations

This policy shall be reviewed as and when required for betterment of the same.


Training Program

GLOBAL PARTNERS

One of the best ways for a business to leverage its products and increase growth is through association. Our business alliances help us manage our business more effectively, as well as helping us and our partners develop and diversify our interests. Customers also benefit from the increased knowledge base, as we transform our market awareness and shared technology into innovative and cost effective solutions for customers.

The Packages Group is proud of its long standing network of friends and family, with key business partners as diverse as Print Care, Coca-Cola, Tetra Pak and Mitsubishi Corporation.

Nestle Milkpak Ltd (NML)

Tetrapak Pakistan Ltd.

Tri-pack Films Ltd. DIC Ltd.

Packages Lanka Pvt. Ltd.

International General Insurance

Company of Pakistan Ltd. (IGI)

First International Investment

Bank Ltd. (Interbank)

Coca-Cola Beverages Pakistan Ltd.

Nestle Milkpak Ltd (NML)

Milkpak was established in 1981. It collected milk from the rural areas, processes it by the UHT method, and sells it in Tetra Pak containers. In 1988, Nestle of Switzerland bought into Milkpak and expanded its scope and activities - Nestle now owns 59% of the enlarged company. NML sales in year 2006 were Rs.28.2 Billion with 2,345 employees. Public Limited Company.

Tetra Pak Pakistan Ltd.


Training Program

Established in 1982, Tetra Pak Pakistan Limited is a joint venture between Packages Limited and Tetra Laval International, S.A., the world’s leading liquid food packaging company. Total number of employees: 263. Private Limited Company.

Tri-pack Films Ltd.

Tri-Pack manufactures Bi-axially Oriented Polypropylene film (BOPP) with an annual capacity of 27,800 tones. Tri-Pack sales net of sales tax in 2007 were Rs.4.6 billion. The number of employees of the company is 308. Packages Limited has 33.3% ownership in the company while Mitsubishi Corporation of Japan holds 25% shares. The Company has production facilities in Port Qasim (near Karachi) and Hattar NWFP. It is a Public Limited Company.

DIC Ltd.

Established in 1994, a joint venture between Packages Limited (55%) and Dainippon Ink and Chemicals Asia Pacific Singapore Pte. Limited (45%). Dainippon Inks and Chemicals is one of the largest printing ink manufacturing groups worldwide. Gross sales for 2007 were Rs.1086 million. Number of employees: 151. Non-listed public limited Company.

Packages Lanka Pvt. Ltd.

Packages Lanka (Pvt) Limited is based near Colombo, Sri Lanka. It is a joint venture between Packages Limited and Print care (Ceylon) Limited of Sri Lanka. This project was set up in 1998 for the manufacture of flexible packaging material. Packages Limited owns 79% of this company. Packages Lanka (Private) Limited has an annual capacity of producing 54 million meters flexible packaging. Packages Lanka Private Limited had sales of Sri Lankan Rs. 815 million in the year 2007. The number of employees of the company is 132. Private Limited Company.

International General Insurance Company of Pakistan Ltd. (IGI)


Training Program

The Insurance Company of the Group, IGIIL, was established in 1953. It had a gross premium of Rs.1, 040 million in the year 2007. IGIIL holds a very important position in the Group having investments in all Group Companies. Net worth at realizable value is over Rs.15.5 billion Numbers of employees are 114. IGIIL acquired the

Insurance business of Pakistan branch of Royal & SunAlliance Insurance Plc in year 2004. IGIIL is global network partner of Royal & SunAlliance Insurance Plc. It is a Public Limited Company.

IGl Investment Bank Ltd. (Interbank)

Established in 1990, IGI Investment Bank is licensed to carry out all investment finance and leasing operations as a Non-Banking Finance Company. In addition, it also offers corporate finance and advisory equity brokerage, portfolio management and mutual funds advisory services. In 2006, IGI Investment Bank acquired Finex Securities Limited, a brokerage house in Karachi, and has established IGI Funds Limited, an Asset Management Company. The Packages Group owns 55% of the equity and International Finance Corporation (IFC) 10.8%. In the year 2006-2007, the Bank had gross revenue of Rs.586 million. The number of employees is 111. It is a Public Limited Company.

Coca-Cola Beverages Pakistan Ltd.

Packages Group is a minor shareholder in Coca-Cola

Beverages Pakistan Limited (CCBPL) of which The Coca-Cola Company, Atlanta, U.S.A. holds 92% shares. The company has 2,474 employees.

Major Divisions


Training Program

Packages Limited has three major divisions.

Paper and Board Division

Packaging Division

Tissue Division.

Carton

Corruwal

Flexible

Consumer Products

PRESENT BUSINESS STATUS

Today Packages Ltd. has about 3000 employees and is the market leader of its products. It has one of the largest paper and board mill in Pakistan. It is operating in both the industrial and consumer markets.

The main industries covered by Packages Ltd. are:

Tobacco Industry

Food Industry

Soap Industry

Shoe Industry

Normally company accepts big orders as the fixed overheads are more but there is no restriction of quantity. Along with its industrial products it has many consumers’ products:

Facial Tissues (ROSE PETAL)

Facial Tissues (COTTONETTLE)

Toilet Rolls

Paper Cups

Paper Plates

Wet Tissues

FEMINEX

Lately, Packages Ltd. added a number of consumer products like wet tissues, and shoe cleaner to its consumer products line. It is the market leader in both


Training Program

the industrial and consumer products. It has almost the monopoly in the tissue market and has about 30% share in the packaging industry. Its major competitors are:

Ferozesons Pvt. Ltd.

National Packages

Almas Pvt. Ltd.

Century Paper Mill

Decent Packages Pvt. Ltd.

Flying Tissues

OBJECTIVES OF PACKAGES LIMITED

The objectives for which the company is established are:

To carry on all or any of the business of manufacturing and printing of cartons. Packages supplies containers for various commodities, utensils and other articles, printers, photographic printers, book binders, designers, paper and board manufacturers, printing ink manufacturers.

To carry on all or any of the business of manufacturers of and dealers in Paper and Board of all kinds and tetrad paper for making tetrad park of any type, straw board, plain and corrugated board, duplex board, card board, mill board wall and ceiling paper etc.

Manufacturers, importers exporters and dealers in raw materials, articles and things required for purposes of manufacture and printing of cartons, packages specialized containers for various commodities and to establish ad maintain showroom for this purpose ad of distributors and suppliers of the said articles and contractors for supplying them.

To establish laboratories, research and development centers to perform such research and development as the company may deem advisable or feasible.

To manufacture, purchase, import, export, store, warehouse, process, sell and generally to deal in all materials, articles substances and things required for packing material.

To carry on business as producers and processors of and dealers in poultry, dairy products of all kinds and other liquid of every description


Training Program

and to carry on business as manufacturers of all kinds of condensed milk, cream, butter, cheese and other milk products.

To train personnel and workers, both in Pakistan and abroad, to obtain

technical proficiency in various specialties connected with the paper, board and packing industries.

OUR CORE VALUES

Smart Governance

Our People

Customer Satisfaction

Work Environment

Conservation

Ethical Behavior

Underlying everything we do and everything we believe in is a set of core values. These guide us to deal with every aspect of any issue we might encounter in our personal and professional lives. These values help us grow inside and outside, personally and as an organization.

Smart Governance

We are committed to running our business successfully and efficiently, providing long term benefits to our employees and shareholders, and enriching the lives of those whom we serve by fulfilling our corporate responsibility to the best of our ability. We expect excellence from all processes, whether they relate to policy formation and accounting procedures or product development and customer service.

Work Environment


Training Program

Our policies and core values are aimed towards creating an informal yet stimulating team-oriented work environment with a culture of sharing and open communication. We cherish the diversity of viewpoint of every individual; we realize this encourages innovation and develops character.

All employees have the right to a stress- and injury-free work environment. We ensure our employee safety and health by providing various in-house facilities such as a gym and making sure that all staff understand and uphold

our safety policy. All our employees are permitted and encouraged to afford time and attention to personal concerns.

Our People

The success of any organization is largely dependent on the people working for it. Each member of our team is considered equally important and provided constant training, motivation and guidance. We possess a dedicated staff of the highest caliber dedicated to making our business a success.

We ensure that every employee has the opportunity for maximum professional development. To achieve this goal, we seek to provide challenging work prospects for all employees. Each person is compensated and rewarded for his or her performance and hard work on a strict merit basis.

Conservation

We expect and encourage our employees to actively participate in community service and to take care of the environment entrusted to us as citizens sharing the earth's resources.

Customer Satisfaction

We are customer-driven; we go the extra mile to make sure our clients' expectations are met and exceeded on every issue. We partner with leading


Training Program

companies to arm ourselves with the latest technology and provide customers with innovative solutions in the most cost-effective manner available.

Ethical behavior

We make it clear that being a sincere, honest and decent human being takes precedence over everything else. In the Packages family, there is an all-round respect for elders, tolerance for equals and affection for youngsters. Managers are expected to lead from the front, train junior colleagues through delegation, resolve conflicts speedily, be visible at all times and act as role models for others.

We make sure that all our processes and methods conform to the highest ideals of professional behavior. Our organizational structure is straight-forward and need-based; accountability is transparent, consistent and both horizontal and vertical.

We make sure that all our processes and methods conform to the highest ideals of professional behavior. Our organizational structure is straight-forward and need-based; accountability is transparent, consistent and both horizontal and vertical.

OUR PEOPLE

Our people are our greatest asset. We seek and retain people who feel there is no compromising on excellence, and a corporate culture in which our family can grow and thrive. Heading our multi-talented team is our leadership of experienced senior management. Together, we know how to combine our skills and knowledge to deliver state-of-the-art solutions to our customers.

Company profile


Training Program

BOARD OF DIRECTORS

Asadullah Khawaja(Chairman)

Mujeeb Rashid

Kamal Afsar

Shamim Ahmad Khan

Khalid Yacob

Syed Hyder Ali(Managing Director)

Kirsten Rausing

Syed Shahid Ali

Markku Juha Pentikainen

Tariq Iqbal Khan

ADVISOR

Syed Babar Ali

COMPANY SECRETARY

Adi J. Cawasji

EXECUTIVE COMMITTEE

Syed Hyder Ali - Chairman

Mujeeb Rashid - Member

Khalid Yacob - Member

AUDIT COMMITTEE


Training Program

Shamim Ahmad Khan - Chairman

(Non-Executive Director)

Tariq Iqbal Khan - Member


Syed Shahid Ali - Member



(Director & General Manager)

Adi J. Cawasji - Secretary

BUSINESS STRATEGY COMMITTEE

Syed Hyder Ali - Chairman


Syed Aslam Mehdi - Member


SYSTEM & TECH. COMMITTEE

Mujeeb Rashid - Chairman


Suleman Javed – Member


Training Program

FUTURE OF PACKAGES LIMITED

Today Packages Limited is considered among the leading, fully integrated packaging complexes in Asia. It will continue to keep pace with the requirements of its customers by using modern packaging techniques and materials to give its customers value for money.

Packages Limited believes in maintaining stringent quality control standards and is continuing its efforts to implement successfully the current investment programmed and also to plan for further development.


Training Program

PACKAGES LIMITED STRUCTURE


Training Program

The organization structure of Packages LTD is flat and not fully centralized although lop management is responsible for all-important decision but the mutual sharing of employees is also considered too much extend.

STRATEGIES & GOALS

It is the great desire to increase the market. For this it diversifies its business but also try to make its research & development more effective.

CORPORATE CULTURE

Our management style can best be described as egalitarian, with everyone having an equal opportunity for development and growth. People are recruited into the company based purely on merit and with total disregard to considerations of gender, race, color or creed. Merit alone is the criterion of all subsequent professional growth. Performance evaluations are conducted on the basis of achievement of individual objectives that are in conformance with the departmental and overall corporate objectives of the company. Promotions are similarly guided by merit and the suitability of an employee to the position for which he or she is being considered.

Our working environment is so relaxed as to be almost casual; there is no bossing around or subordination, no name tags on offices, and no appointments required for calling on seniors. People are encouraged to communicate informally at all levels and interpersonal relationships are greatly valued. Written communication is simple and to the point, with even personal names abbreviated to initials to save time.

Our leadership follows the principle of 'management by walking around', where managers are expected to make daily rounds of all areas of responsibility, and have first-hand information of all significant happenings.

This informal style of management may seem arbitrary, but is serious without being intimidating and has stood the company in good stead over the years. Today, our corporate culture is so attractive that most people join us straight from an educational institute and leave only after serving their full tenure.


Training Program

POLICY FORMULATION

The main objective is to maintain its position of leadership in providing quality packaging for all purposes to Pakistan market. To accomplish this Top management setup I some policies in the best interest of the organization. No doubt top management makes the policies but it also takes into consideration the suggestion of middle management and the first line management

The policy formulation process is neither complex nor too long. Some policies are made for short period and some are for long period. The nature of policies depends upon the profitability of the organization Meeting are conducted randomly by top management in which all the shareholders and the head of each department are invited.

FUNCTIONAL DEPARTMENTALIZATION

There is a functional departmentalization in the packages. All the departments are responsible for their operations so that there is a better utilization of the resources and revaluation of their outputs.

VALUE CHAIN OF PACKAGES

Packages LTD has the value chain that they used to identify ways to create more customers value. It consists of two types of activities.

PRIMARY ACTIVITIES

Primary activities contribute to the physical creation of the product, its sale and transfer to the buyers and after sales service.

INBOUND LOGISTICS

Raw material for the production of paper and board is obtained locally through regular purchasing from the agricultural sector and to maintain the quality the Ingredients are mixed with imported wood pulp. About 9000 tons of wood pulp and 1500 tons of chemicals (Sulphur and raisin) are imported annually.

OPERATIONS


Training Program

Continuous flow is followed in the paper and board mill and assembly in the packaging division as paper board is cut in appropriate sizes, printed and then Modified to be folded. / Into the desired shape.

OUTBOUND LOGISTICS

Tie packaging division uses all the paper produced by the paper and board mill, which re stored from time to time to accumulate in the warehouse and prevent from stock outs. Final products are transported from the production department and the warehouse via trucks.

MARKETING & SALES

Packages provide packaging solutions to major consumer industries in Pakistan through cost effective packaging. They do not have to extensively practice aggressive marketing or sales, as their position is strong being the only one capable of providing high quality paper and board.

In 1981, Packages modified a paper machine to produce tissue paper as a response to the growing awareness and demand for hygienic disposable tissues.

The Rose Petal brand name was launched with facial tissues, later expanded to include toilet paper, kitchen roll, table napkins, party pack and pocket pack. The idea of convenient and economical disposable items was extended to paper cups and

paper plates.

In 1990, Packages installed a tissue paper manufacturing machine to improve quality and meet increased demands.

SERVICES

There does not exist any dealer network and they do not operate in the consumer market for the production of paper and board except of providing tissue papers and toilet paper and sanitary napkins.

SUPPORT ACTIVITIES


Training Program

Support activities assist the primary activity and each other.

HUMAN RESOURCE MANAGEMENT:

Generally University graduates are inducted by Packages Limited and given Intensive in-house training. They are groomed and trained in each department for a better understanding of how various systems work in Packages Limited. This training enables them to comprehend and work for achieving corporate objectives. They also provide competitive salaries and wages. Statutory benefits such as social security, provident fund, group insurance, workers participation fund, workers students education expense, employees old age benefit schemes and federal education fees schemes are provided as well. Packages also provide Loans for bicycles, motorcycles and cars. Bonus and gratuity are part of the Scheme to keep managers and workers as a happy and contented Packages family.

TECHNOLOGICAL DEVELOPMENT

Packages pledges to provide the market with the best quality products at competitive prices through a system of customer driven, service oriented and dynamic Management team. To meet this obligation, the company continuously updates of employee skills by training, acquisition of new technology, and regular reevaluation of its quality control and assurance systems.

Improvement and new development are part of Packages corporate objectives to sustain continuous and consistent progress in quality systems. Continuous exploration of the use of new fibers, films, chemicals, adhesives, coatings and resins is undertaken. Well-equipped labs and pilot machines test the raw materials and chemicals so that better quality can be provided. More over the company uses "computer integrated manufacturing''1 for production and manufacturing process.

SAP (SYSTEM APPLICATION PROGRAM)


Training Program

A TOOL OF ENTERPRISE RESOURCE PLANNING

Packages limited implemented software applications program in the year 2000, and is using SAP to fully integrate all its business processes. Sap is an enterprise resource Planning (ERP), which through a common database allows the company to be fully integrated and be live in respect of its business process information. Sap products empower people to respond quickly and decisively to dynamic market conditions, helping business achieve and maintain a competitive advantage by improving the response time and service to its customers.

MANAGEMENT


Training Program

It is a public limited company and like wise other limited company it is controlled and managed by its board of directors through a team of highly professional managers. The relationship of management with the staff, especially with the workers, remained cordial and the directors are pleased to record their appreciation for the hard work and dedication shown by them.

HUMAN RESOURCES

A package limited is of view that the strength of any organization lies in its people that work for it. At the heart of their success lies in their commitment to equal opportunity, to a performance culture and demonstrated performance. They continuously invest in their people through training and development activities. Generally university graduates are inducted by Packages Limited and given intensive in-house training. The process of grooming and training is essential for comprehensive understanding of the function of the various departments.

CUSTOMERS

Packages believe in customer satisfaction, which is the only way to progress in the new millennium, continuous investment in technology, system, people, and services

will help them to meet the changing market place and to serve the needs of the customers in a better way.

WASTE MANAGEMENT

The waste management at the Packages limited is done through:

Sedimentation and sludge handling process.

Chemical recovery plant.

MANAGERIAL POLICY & PRACTICES


Training Program

RECRUITMENT

Packages has been very particular about recruitment of its employees, their basic selection criteria is based upon professional education as well as academics background.

Packages Limited has designed a sound but easy method of recruitment. When any department needs an employee, it sends its requirement to the Human Resource Department, which in turn advertises the vacancy in the leading newspapers and asks for the qualified people. In case of the posts requiring some years of experience, only interview method is used to select the best candidate.

RECRUITMENT PROGRAM

Packages has separate human resource department that is held responsible for the recruitment of jobs, subsequent departments on their request are provided by suitable candidates through HRD, a test is conducted which is based upon IQ test, aptitude test, and of academics, successful candidates are then screened through 3 interviews, one by HRD, other by the head of concerned department, and final interview is the panel interview conducted by board of selected people of various departments. Personnel department known as industrial relation department in packages limited, are held responsible for managing recruitment, record keeping of employees and all related industrial affairs of the employees.

RECRUITMENT OF WORKERS

Minimum qualification for the post of the workers is Matriculation 2nd Division with science subjects. The workers should not be more than 21 years old and must be medically fit. These are employed as "Apprentice Trainee". If the performance of the worker is satisfactory during the probation period, he is hired. Normally workers get promotion after two years on the recommendation of their supervisors. This post is not advertised.

RECRUITMENT OF DIPLOMA HOLDERS:


Training Program

Diploma holders in Electrical, Mechanical and Instrument Engineering are also employed. They are given a training of six months. They are employed for supervisory jobs.

RECRUITMENT OF EXECUTIVES:

In finance division, they normally require C.A, ACCA, ACMA, MBA, MCOM, for respective jobs according to their skills. As packages has developed one of the most

Expensive internal control systems, therefore in order to fill full requirements, highly qualified people are required.

Job Identification: When any department needs an employee, it sends its requirement to the Human Resource Department.

Recruiting & Hiring: For recruiting and hiring some factors are taken into. Consideration. These factors are as follow:

Nature of the job.

Time required filling the vacancy.

If there is time to fill the vacancy, advertisements are given in the newspapers.

If the vacancy has to fill immediately, tife Human Resource Department contacts the authorized institutions, universities etc.

Budget constraints.

PROCESS:

The recruiting and hiring process starts from the applications submitted by the degree holders. They provide their CVs along with the applications. These applications and CVs are screened out on the basis of:

Merit

Institute

Experience etc.


Training Program

After this, approximately 50% of the applicants are selected for the further process. Then the H.R Department lists out the salient features of the CVs (only the accepted CVs).

Then the H.R. Manager takes a test. This test is based on:

English comprehension

Basic mathematics

Data sufficiency

IQ

Some questions about the particular job, for which the applicants have applied.

After taking the test, the top 10, 20 or 30 applicants (according to the job requirement) are chosen for the first interview. At this stage the selection of applicants also depends on the H.R. Manager and the departmental head. Normally 30% of the applicants, who have given the test, are selected for interview.

Through telephone calls or letters, the selected applicants are informed about the date and time of the interview. Normally two interviews are taken

H.R. Manager and the departmental head take first interview. In this interview they observe,

Alertness

Confidence

Leadership skills

Relevant knowledge

Social acceptance

Interests

Communication skills

First impression

Maturity


Training Program

According to these observational factors rating or grading is made. Normally 5% rating in each factor is acceptable. Then successful candidates are called for final interview.

Final interview is taken by:

General Manager

Deputy General Manager

Human Resource Manager

Departmental Head (sometimes) previous traits or factors are once again examined.

After the final interview, the selected applicants are sent for medical test and then the Industrial Relations Manager issues them the appointment letters.

3. Training & development:

Appointed persons are trained for one year, the are given the title "Management Trainee"

In the Industrial Marketing, the trainees are called "Sales Executives" and after one they are given the designation of "Assistant Manager Sales".

The trainee is given a brief view (orientation) of the company, various processes, roles & regulations etc. this orientation may be from two weeks to two months.

After the orientation program, the participants may ask to submit short report or presentation.

After the 6 months training, the trainee goes to H-.R. Manager and tells him what he has learnt in this program.

Some external courses may be offered not only to the existing employees but also to the new trainees. These courses are held in,

LUMS

PIM

Intek Solution


Training Program

Recently Packages has jointly entered into a diploma program with LUMS. It is 18 weeks program called Diploma in Business Administration. Two sessions of this program has passed out till now.

4. Performance & Appraisal:

Performance & appraisal are two sides of a coin. Immediate officer appraises performance.

For the appraisal of the performance, there is a Performa, which is filled by immediate officer.

This Performa is named as (PPE) Performance Planning & Evaluation.

There are seven sections in this form. The particulars of the candidates are written on the top of the form.

Performance Plan:

In this section, some standards and targets along with time frame are given. The target given in Packages Limited is known as "SMART".

S= Specific

M= Measure able

A= Attainable

R= Realistic

T= Time frame

Performance Evaluation:

In this section, the net results of the standards & targets given in section # 1 is evaluated or checked. Whether the person can achieve the targets in the required time frame or not.

Competency Dimension:

In this section, different behavioral indicators, in accordance with the performance are checked. These indicators are as follows:


Training Program

Communication Skills

Work Organization

Result Orientation

Team Player

Customer Consciousness

Self-Confidence

Leadership Qualities

Development Orientation

Strategic Visioning

Business Knowledge

Critical Reasoning

Human resource Development

Performance Evaluation Results:

In this section, there are two parts.

Part A Section # 2 score (%)

Part B Section # 3 score (%)

Total score of Part A and Part B are calculated here.

STRENGTHS & LIMITATIONS:

In this section, the strengths and limitations of the trainee or subordinate are written. This is all up to the immediate officer.

PERFORMANCE IMPROVEMENT PLAN:

In this section, the immediate manager gives some suggestions and recommendations.

COMMENTS:

The employee/ subordinate and the manager give their comments. Employee comments may be how ha found the work place? Who supported him? And the


Training Program

Manager gives the comments according to his observation. In the last they put their signatures with date.

CONTRACT OF SERVICE

APPOINTMENT

Each selected candidate is given a Letter of Appointment (in duplicate) specifying his terms and conditions of service.

An offer of appointment shall become effective only when the candidate confirms his intention to accept the position by endorsing the duplicate copy of Letter of Appointment to the Industrial Relations Department.

The candidate has to pass the medical examination conducted by the company's Doctor before he is confirmed.

INDUCTION

The appointee shall submit his joining report, in writing, to his Head of Department, on the date he joins his duty

The time office shall issue an Identity Card which shall indicate the Department, Designation and the Employee Number of the new appointee.

PROBATION

New employee is initially kept on probation for a period of three months unless otherwise specified in the Letter of Appointment.

On successful completion of the probationary period, the company shall inform the employee, in writing, about his confirmation.

In case, the employee fails to come up to the desired standard, his probation may be extended, at the discretion of the company, in order to give him a chance to improve his performance or he may be terminated.

On confirmation, the new employee shall be given a permanent Identity Card which he/she must carry on his/her person while inside the factory perimeter and produce the same on demand.


Training Program

The probationary period served by an employee shall be taken into consideration while computing the employee's total length of service.

SEPARATION TERMINATION

During the probationary period, an employee's service may be terminated at any time without assigning any reason for the same

A confirmed employee may be terminated by the company by giving notice of termination as per the Letter of Appointment or salary in lieu thereof.

Notice of termination shall be in writing. It shall become effective as specified therein.

RETIREMENT

An employee shall retire from the service of the company on attaining super annuation i.e. 58 years of age, or early, if found, medically unfit by the company's appointed Doctor.

DISMISSAL

An employee shall be dismissed from service if found guilty of misconduct as

Specified under the law. Such employee shall not be entitled to any notice or

Pay in lieu thereof.

REGISTRATION

A probationer may resign from the service of the company by giving 24 hours notice in writing.

A permanent employee may resign from the service of the company either by giving notice, in writing, as per the terms of his appointment or depositing salary in lieu thereof.


Training Program

REMUNERATION AND BENEFITS

MODE OF PAYMENT

Employee working in the Office/Security/Transport and those performing supervisory nature of jobs on the process are paid on monthly basis.

All the employees working on the Process and Departments ancillary thereto and not performing supervisory jobs are paid on hourly basis. Their wages are calculated on the basis of eight hours daily for 26 working days in a month.

REMUNERATION

BASIC PAY

Basic salary is an amount which is paid to an employee in accordance with the grade in which he/she is placed.

CONVEYANCE ALLOWANCES

Cycle Allowance

All the employees are entitled to a Cycle Allowance in case they not maintain any transport of their own as per rules

Motorcycle/Scooter Allowance

All the employees who maintain Motorcycle/Scooter are entitled to Motorcycle/Scooter Allowance provided the vehicle is registered in their name and they bring the same for at least 15 days in a month to the factory.

Car Allowance

All the employees in Executive Grade-111 and above are entitled to Car Allowance provided the vehicle is registered in their name and they bring the same for at least 10 days in a month to the factory.


Training Program

HOUSE RENT ALLOWANCE

All the employees are entitled to House Rent Allowance @ 60% of the basic salary with a minimum limit specified for different grades from time to time.

COST OF LIVING ALLOWANCE

As per law the employees are entitles to Cost of Living Allowance.

STATUTORY SPECIAL ALLOWANCE

All the employees, upto Junior Executive Grade, are paid, on a sliding scale, Statutory Special Allowances(s) upto a maximum of Rs. 450.00 as per law.

UTILITY ALLOWANCE

All the employees in V-Grade and above shall be paid a Utility Allowance according to their respective grades.

SPECIAL ALLOWANCE

All the employees in Executive Grade-11 and above are entitled to Special Allowance as per their respective grade.

BENEFITS

SUPERVISORY ALLOWANCE

All the employees having supervisory nature of job and are in Grade IV, V & J.E. are entitled to Supervisory Allowance as stipulated in the grades till such they continue to perform such dutie7s.

NIGHT SHIFT ALLOWANCE

All the employees' up to Junior Executive Grade are allowed Night Shift Allowance while performing night shift duty.


Training Program

RECREATION ALLOWANCE

All the employees' up to Junior Executive Grade are allowed Transport Fair Assistance for recreational trip every year.

SHOE ALLOWANCE

Production employee up to Junior Executive Grade and Office employees up to Grade-V are allowed Shoe Allowance which is paid in the month of July every year.

Workers of the Technical Division are provided safety shoes where the nature of duties so demanded.

CASH HANDLING ALLOWANCE

All the employees making cash disbursement in the factory are allowed Cash Handling Allowance

DISBURSEMENT OF PAY

Remuneration including overtime is paid to the monthly staff of the last working day of every month.

The hourly staff is paid on monthly basis.

INCREASE IN REMUNERATION

Annual increase in remuneration of an employee is made on the 1st of April every year. This increase is subject, however, to the performance of the individual during the preceding period.

In case an employee improves his qualification in line with his duties, he is allowed an increment in his regular grade.

Promotion in the company is subject always to merit and suitability of an employee to the position for which he is being considered.


Training Program

EMPLOYMENT BENEFITS

BONUS

The bonus is paid to all the confirmed employees subject to the profitability of the company at the end of its financial year i.e. 31st of December.

To become entitled to bonus, an employee must be on the rolls of the company on the 1st of January immediately preceding financial year.

The bonus is paid, on pro-rata basis, on the basic wages/salary, which is calculated on the basis of average wages/salary earned by an employee during the financial year. This payment is, however, always subject to the conditions stipulated in the Office Order announcing the payments of Bonus.

PROVIDENT FUND

On confirmation, the permanent employees become the member of the Packages Employee Contribution Provident Fund and contribute 10% of the basic wages/salary plus Cost of Living Allowance earned by him in a respective month and an equal amount is accredited to the name of the employee by the Company.

An employee is entitled to take loans on refundable and non-refundable basis from his Provident Fund.

An employee cab draw a maximum amount equal to six months basic salary plus COLA as refundable loan in case of marriage, illness etc. which is repayable along with the interest in a maximum of 24 monthly installments.

An employee can draw a maximum amount equal to 36 months basic plus COLA salary from his Provident Fund on non-refundable basis for the purchase of if residential plot or the construction of his house.

On separation, an employee is paid the total amount i.e. both the company's and self contribution along with the interest accrued thereon.

GROUP INSURANCE

All the confirmed employees are insured under the Group Term Insurance Policy by the company. Under this Group Insurance Policy, an employee is entitled to


Training Program

Compensation from the State Life Insurance Company in case of death and disablement as stipulated under the policy.

GRATUITY

Gratuity is paid to the employees/heirs in case of retirement, termination, resignation or death.

Gratuity is paid to an employee provided he has completed 10 years continuous service with the company as specified in the annexure.

No gratuity is paid to an employee who is dismissed from service.

The Gratuity is paid on the last drawn basic wage/salary.

MANAGEMENT STAFF PENSION FUND

All the employees in junior executive grade and above are eligible to become on confirmation, the member of Management Staff Pension Fund. In case an employee wants to become member of the Pension Fund, he should put in application on the prescribed form.

On becoming member of the Pension Fund, the employee shall be called upon to contribute 4% of his basic salary towards the fund every month. The Management shall also contribute an amount which is determined by the Actuary.

After retirement or death of a member, pension is given to him or his heirs as the case may be.

In case of death, 50% of the pension is given to the widow. Children under 21 years of age get 20% (each) to a maximum total of 40%.

EMPLOYEE CONTRIBUTORY WELFARE FUND

The company has established a welfare fund wherein all the permanent employees, are eligible to become member. All the members are required to contribute a nominal amount towards the fund and the company contributes an equal amount.

In case of sick leave without pay, total permanent disablement and death, the member or his direct dependents are entitled to financial assistance for a period or four years.


Training Program

EX-GRATIA

Ex-Gratia is the amount which is paid, as per the following schedule, at the time of retirement or death of an employee.

a. Less than five years service Nil

5 years service to less than 7 ½ years service One month

7 years service to less than 10 years service ½months

10 years service and above 3 months

Incase of death 3 months

WORKER'S PARTICIPATION FUND

All the employees covered under the worker's profit participation Act are paid part of the profit as specified there under.

EMPLOYEES OLD AGE PENSION SCHEME

All the employees shall become member of Employees Old Age Pension Scheme which is set up by the Government and shall be entitled to pension after attaining the age of 58. The company contributes 5% of an employee's wages/salary towards this scheme.

TELEPHONE FACILITY

In order to ensure that key executives are available in case of emergency, the company encourages them to have telephone at their residences for which they are allowed part reimbursement of their telephone bills.

CYCLE FACILITY

All permanent employees up to Grade-V can get cycle on easy installments.

MOTORCYCLE LOAN FACILITY

All permanent employees up to Junior Executive Grade are eligible to take loan from this scheme on seniority basis.


Training Program

The company arranges for the loan from the Bank which is re-paid in monthly installments along with the interest thereon.

INCENTIVES ATTENDANCE ALLOWANCE

All the employees up to Junior Grade are given Attendance Allowance-as specified in the Aimexure provided they have not:-

Reported late for duty by 15 minutes for more than 3 days in a month.

Available more than three casual leaves in a month.

Available leave without pay or Social Security Leave.

Absented for any day in a month.

PRODUCTION INCENTIVE

The Management has set up a Production Incentive Scheme for various machines or jobs ' the case may be. To motivate employees for higher production a certain base rate i.e. minimum requires production, for a machine/job, for a specified period, has been fixed. When an employee or a group of employees exceeds that minimum required production, they are paid an extra amount which is in proportion to the regular production and maximum required time fixed for its production.

LEAVE ENTITLEMENT RULES

ANNUAL LEAVE

An employee becomes entitled to annual leave after the completion of twelve months continuous service with the company.

The entitlement of annual leave for hourly-rated employees is 14 days and after having completed 20 years of continuous service with the company, 16 days with a maximum accumulation of 100 days.

The entitlement of monthly paid employee up to Grade-V is 15 days and after having completed 20 years of continuous service with the company, 17 days with a maximum accumulation of 100 days.

Employees in Junior Executive Grade and above with less than 14 years of service are entitled of 15 working days with a maximum accumulation up to 100 days.


Training Program

Employees in Junior Executive Grade and above having 'completed 14/21 years service are entitled to 21 days with a maximum accumulation upto 120/180 days.

Employee intending to avail annual leave must obtain prior approval in writing from their Division Manager.

Annual leave shall only be available for more than 3 days at a stretch.

CASUAL LEAVE

An employee is entitled to 10 casual leaves or in proportion to his length of service in a calendar year.

Casual leave becomes due from the date of appointment and can only be allowed after confirmation.

Casual leave can be availed to maximum of 3 days at a stretch.

At the end of a calendar year, casual leave is encashed to hourly rated staff and monthly paid staff upto Grade-V.

In case of employees in Junior Executive Grade and above, un-availed casual leave is converted into annual leave at the end of calendar year subject, however, to the limit of accumulation of annual leave.

An employee must give prior invitation to avail casual leave.

MEDICAL LEAVE

All the employees are allowed 8 days medical leave with full pay or 16 days medical leave with half pay in a calendar year.

Medical leave becomes due from the date of appointment and is allowed with pay after confirmation. « For more than one day's medical leave, a medial certificate issued by a Registered Medical Practitioner is mandatory.

At the end of a calendar year, un-availed medical leave in encased to hourly rated and monthly paid staff up to Grade-V.

Employees in Junior Executive Grade and above can accumulate up to 40 days medical leave.


Training Program

HAJJ LEAVE

One month's leave with pay is allowed all permanent employees for performing Hajj.

COMPENSATORY LEAVE

In case, and Executive Grade-in, to Grade-1 workers for full 8 hours on his weekly day off or on a Gazetted Holiday, he is entitled to one day Compensatory Leave.

Compensatory leave is to be available within the same calendar year in which it falls due.

MEDICAL COVER

Most of the employees are covered under Social Security Scheme initiated by the Government of Pakistan and those who are not covered there under are provided medical cover by the Company.

SOCIAL SECURITY

All the employees drawing wages/salary unto Rs.5, 000/= are covered under the Social Security Scheme. Company pays 7% of their monthly wages/salary as contribution to the Social Security Institution which provides medical coverage to the employees and their direct dependents and compensation in case of total/partial, temporary/permanent disabled or death arising out of and in the course of employment.

MEDICAL COVERAGE BY THE COMPANY

All the permanent employees and their direct dependents i.e. spouse and dependant children are provided medical facilities by the company through its clinic.

Medical facility includes clinic investigation, specialist consultation and hospitalization on the recommendation of the company's Doctor but it does not include dental treatment.


Training Program

MEDICAL ALLOWANCE

The company who does not want to avail medical facility from Gulberg Dispensary can apply for Medical Allowance. Once he opts for the allowance he can only change it after expiry of one year.

WORK SCHEDULE

WORKING HOURS

(a) Working hours for process and Departments thereto are as follows:-

Shift Packaging Division Paper & Board Division

1st From 6.30 a.m. to 3.00 p.m. From 6.30 a.m. to 2.30 p.m.

2nd From 2.55 p.m. to 11.25 p.m. From 2.30 p.m. to 10.30 p.m.

3rd From 11.20 p.m. to 6.35 a.m. From 10.30 a.m. to 6.30 a.m. General From 7.30 a.m. to 4.00 p.m. From 7.30 a.m. to 4.00 p.m.

Process workers of Paper and Board Division, being involved in continuous Process are not allowed at lunch break. In most of the departments they are served food their place of work.

1. Employees working in Packaging Division are given half and hour's break during the shift. Employees working in general shift in both the Division are allowed half hour's break.

(b) Office employees of the various Divisions observe the following working hours.

At Lahore, Islamabad and Multan Office.

During summer:

From Monday to Saturday. 8:00am. to 4:00 p.m.

On Friday: 8:00 a.m. to 4:00 pm.

During winter:


Training Program

From Monday to Saturday: 8:30 a.m. to 4:30 p.m.

On Friday: 8:30 a.m. to 5:00p.m.

At Karachi Office:

From Monday to Saturday: 8:30 a.m. to 5:30 p.m.

On Friday: 8:30 a.m. to 6:00 p.m.

ATTENDANCE SYSTEM

Company recognizes the need for developing and maintaining accurate system of recording days and hours of work of all employees. For this Purpose at most locations of the factory, card swipe machines are installed and employees are required to enter their arrival and departure whether it is normal working days or a holiday. At the time of appointment all employees are issued a swipe card which bear Name, Employee Number, Designation and Department. At the end of the month, the time office makes out the earning of the employees on the basis of attendance and sends the same to Accounts Department for payment.

WEEKLY DAY OFF

Employees working in the offices and packaging division are allowed weekly day off on Saturday whereas those working in shifts in paper and board division are given weekly day off in accordance with the shift rota.

OVERTIME

All the employees, upto Junior Executive Grade, are paid at double the rate of their basic salary/wages plus cost of living allowance, for hours of work put in, in excess of their daily working hours.

WELFARE AMENITIES


Training Program

CANTEEN

In order to ensure wholesome and quality food, the management is operating canteen round the clock. Not only lunch/dinner but also light snacks for the third shift are served. The food is served at highly subsidized rates and the employee has to pay a very nominal price. The canteen has four different messes named as Worker, Supervisor I, Supervisor II and Executives. The main meals are served on credit basis whereas breakfast, milk and afternoon tea is served against coupons. The charges, which are received subject to attendance on duty, are:

Workers 65 paisa per meal.

Supervisor I Rs.l per meal.

Supervisor H Rs.2 per meal.

In senior mess, the members have to pay at a flat rate of Rs. l 32.00 per month, in case of annual leave/outstation duty or change in shifts, the member concerned is allowed Proportionate reduction in bill.

FAIR PRICE SHOP

The company is maintaining a Fair Price Shop wherefrom employee's up to supervisory level can purchase commodities of day-to-day use. This Fair Price Shop is being operated on no profit no loss basis.

EXCURSION

Employees up to Junior Executive Grade are given a reasonable allowance to assist them in undertaking a recreational trip.

SPORTS

The management strongly believes in the maxim "A healthy body has a healthy mind." We have facilities for practically all the sports and the tournaments are held every year and the winners as well as the losers are given handsome prizes. In the same spirit, the management arranges a Mela


Training Program

for title families of the employees where gymkhana events for the ladies are arranges. The prizes for the annual sports are distributed in a gala function which is arranged this very reason.

EDUCATIONAL SCHOLARSHIP

In order to assist the employees to meet the educational expenses of their children, the management is given scholarship for various classes and disciplines as follows:

F.A/F.Sc 8 Scholarships Rs.400.00 p.m. 2 years

Two years certificate course. 6 Scholarships Rs.400.00 p.m. 2 years

B.A/B.Sc. 6 Scholarships Rs.500.00 p.m. 2 years

B.Sc. (Hon.) BCS. 2 Scholarships Rs.600.00 p.m. 3/4 years

Three years diploma course 6 Scholarships Rs.500.00 p.m. 3 years

Graduate engineering 6 Scholarships Rs.700.00 p.m. 4 years

Post graduation 6 Scholarships Rs.700.00 p.m. 2 years

Special children 2 Scholarships Rs. 150.00 p.m. up to metric

ADULT EDUCATION PROGRAM

In order to give illiterate workers a chance to read and write the company runs One Year \Mt Education Program. All the expenses are born by the company and the employees encouraged joining this program in company's time.

HAJJ FACILITY


Training Program

Every year four employees from Non-management Staff and one employee from Management Staff are chosen by drawing of the lot to perform Hajj on company's expenses.

SERVICE AWARD

On the completion of 20 years, 25 years and 30 years service, company gives gifts as a token of its appreciation for continued association with the employee.

COMMUNICATION

It is cardinal principle of Management that in order to be efficacious its communication with its employees should be very effective. In Packages, the following mediums are used to communicate with the employees.

OFFICE ORDERS/CIRCULARS

Office Orders/Circulars are issued to convey information, instructions and directives. These Office Orders/Circulars are displayed on the Notice Boards of the Departments. The copies of such Office Orders/Circulars are sent to the Departmental/Sectional Heads.

PACKAGES AKHBAR

Packages Akhbar is published every second month. It contains not only information 'lit employees and the important events in the Organization but also educative and instructional articles. Employees are encouraged to contribute their own articles as well.

SUGGESTION SYSTEM

In order to have two-way communication and to elicit worker's view point, the management encourages them to make suggestions pertaining to all aspects of organizational activities and they are given handsome prizes in case their suggestions .id to their productivity improvement or savings in cost. For this purpose Suggestion Boxes are kept at the strategic places.


Training Program

FINANCIAL POLICIES

Packages have well established rules for the financial transaction. One of the most important strategies in this regard can be that of investment. Before making investment future is seen rather than the present i.e. investment is made only in need of the project. This will increase the sales in the future. An interesting policy in this regard is that the company makes the investment equal to the depreciation every year. So this implies how careful the company is in making judgment and formulating policies.

BACKWARD INTEGRATION STRATEGIES.

Packages follow the backward integration to support their business. They try to acquire the related companies or part of business to give a boost to the business growth.

MEETINGS

Packages arranges different meetings in the organization to be keep in touch with each other

ANNUAL MEETINGS

Packages arranges the annual meetings in which discuss the previous year activities and forecast the next year transaction

ANNUAL SALES MEETINGS

The sales department of packages held the annual sales meetings. In this regard all sales related people makes the presentations on the proceeding sales activities. The sales forecast is also prepared and presented.

HALF YEARLY MEETINGS

Half yearly meeting is held to maintain and check the working of the company. It is held 10 make the need change in the annual objectives and policies.


Training Program

QUARTERLY MEETING

Packages arrange the quarterly meetings to keep the strict control over the working of the company.

MONTHLY MEETINGS

All departments held the monthly meetings to monitor the activities of the department.

DAILY MEETINGS

There is daily meeting in the department to keep an eye on the working of the employees.

EMPLOYEE GRADES OF VARIOUS DIVISIONS:

There are different grades for workers. These are:

Grade-1 G-l

Grade-2 G-2

Grade-3 G-3

Grade-4 G-4

Grade-5 G-5

Grade G-5 is for supervisors and G-l is lowest grade in the organization. Packages Limited has four different executives grades. These are:

Executive-1 E-l

Executive-2 E-2

Executive-3 E-3

Junior Executive J.E

E-l is the most senior in executive group and J.E is the most junior in this group. There are three Managers grade in Packages. These are:


Training Program

Manager-1 M-l

Manager-2 M-2

Manager-3 M-3

In this group M-3 is most senior and M-l is joiner. The retirement age is 58 years and extension is not granted. If the employee is needed he or she is hired on contract basis.

Departments of Packages

Commercial Department

Finance Department

Marketing Department

Industrial product Department

Consumer product Department

Service Technical Department

Production Department

Planning Department

Research & Development Department

Quality control Department

Management information system

Art Department Department

Human Resource Department

Admin & liaison Department

Other major division of packages ltd

Coating Department

Cutting 7 creasing Department

Lamination Department


Training Program

Folding and gluing Department

Dispatch Department

Quality control Department

Technical Department

Coates lorelleux (ink factory)

Tetra pack

FIELD OF ACTIVITIES


Training Program

Packages Limited is mainly divided into six divisions

1. PAPER AND BOARD DIVISION.

2. PACKAGING DIVISION.

3. Carton Line

4. Flexible Line

5. Corrugated container line

6. CONSUMER PRODUCTS DIVISION

INTRODUCTION TO PAPER & BOARD

Definition of Paper & Board:

When the weight of one square meter of sheet exceeds 130 grams, it is termed as Board or Paper Board. Substance lower than 130 grams per square meter is called Paper.

Board is basically used in the manufacture of cartons where creasing is also required. It provides necessary strength to the cartons, which are most commonly used in packaging of cigarettes, toiletries and detergents, tea pharmaceutical products, food and other consumer items.

History of Paper & Board in Pakistan:

In the early Pakistan though the country mainly depended on agriculture and the manufacturing industry was in a primitive stage, yet the need for packaging consumer’s material was there, the native production of consumer products was little and the consumers material used to come in already packed from abroad. In the early fifties during the initial stages of industrialization, consumer goods industries sprang up and the need for packaging material was satisfied through imports. At the time, such industries as tea, food, pharmaceuticals, shoes, matches, textiles, and cigarettes were importing packaging material to the turn of Rs. 5 million per year. Packaging industry came into existence as a natural and logical link in the industrial development of Pakistan. Between the periods 1950 to 1955, Pakistan Industrial Development Corporation established basic industries for manufacturing paper and board viz. Karnaphulli Paper Mills, Chandraghona,


Training Program

Adamjee Paper & Board Mills, Nowshera, and Sethi Straw Board Mills. Rahwali went into production in about 1955 when government went ahead and placed restrictions on the import of Packaging material. This on the one hand not only saved foreign exchange and on the other encouraged the development of Packaging industry. The first unit went into production in 1957, followed by a number of additional units, bringing the total over a dozen in West Pakistan. Since 1967, four additional Paper and board mills have gone into production at Charsadda, Lahore and Gharo. In the early days, packaging was an industry in which Pakistan had no previous experience or trained people.

In view of the growing demand for paper and board the small size projects, economically viable were set up in almost all the big cities. In order to further develop the production of this sector and with a view to reduce the import liability, few more projects were set up in 1972-77. Although the industry has been passing through a crisis, interest has been shown lately by several new investors to set up paper and board units. Plans have also been made to set up a newsprint mill in the country.

Per Capita Consumption of Paper & Board in Pakistan:

Per capita consumption of paper and board is regarded as one of the yardsticks to measure a nation’s prosperity. Compared to the USA, Sweden and Canada where an individual on an average consumes 200 to 250 kilograms of paper & board per year, the per capita consumption in Pakistan is hardly three kilograms.

The apparent consumption of paper and board has shown a steady increase over the past years and is expected to grow at a faster pace over the coming years because of the increased Industrial and commercial activity in the country.

PAPER & BOARD MILL OF PACKAGES

The basic need of packaging industry is the paper and board. If an industry is producing its own paper and board, it is very convenient for it. One of main features of Packages Limited is that it has its own Paper & Board Mill. At first, the Packages Limited used to buy paper and board from market. Then in 1968 it set up its own Paper & Board Mill with the capacity of 24000 tones per year to manufacture various kind of board, flutings, Kraft liners and Poster Papers conversion into different kinds of cartons and wrappers for the


Training Program

Packaging Division. The aim of Paper & Board Mill is to produce enough paper and board for the needs of Packages Limited.

Different types of paper produced by Paper & Board Mill are:

Off-set Printing Paper

Twist Proof Paper

Tissue Paper

Calendar Paper

Writing & Printing Paper

Duplicating Paper

Imitation Art Paper

M.G. Brown Paper

CURRENT CAPACITY OF PAPER & BOARD MILL:

Today Packages Limited has four Paper Machines with installed capacity of 70,000 tones per annum. Used capacity of these machines is 66,000 tones per annum. The average production of one day is 180-190 tones. It also has the straw pulp and liquid packaging board facility, which established in 1992. With this, they have continued supply and better control on the inputs, which has improved the quality and customer service from the company.

There are 600 employees in Paper & Board Mill. In Packages Limited 94-95% of the total pulp used, is produced in its own Paper & Board Mill. Remaining 5-6% pulp of total requirements is imported.

Paper & Board Mill work under the Planning Department. Marketing Department projects it prospective sales for the coming year. These projections are then sent to Planning Department, which plans the production schedule for the Mill. In the Paper & Board Mill, this whole year plan is broken into monthly plans. The Mill staff then,

Finds out financial needs and these needs are passed to the Finance Department. Following are the three sections of Paper & Board Mill:

Pulp Section

Paper Section

Utilities Section


Training Program

INTRODUCTION TO PACKAGING

Definition of Packaging:

Packaging is the use of containers and components with the addition of labeling to protect, identify, merchandise and facilitate the use of products. Protection and identification of product is being the overwhelming factors in this process. This obviously facilitates the use of a product of a particular brand.

Packaging History:

At first, packaging was any readily available natural such as skins, bark, leaves and woven twigs. They worked marginally well because drying, smoking, salting or fermentation generally preserved food. Non-foods were mostly sturdy in construction.

However, obvious deficiencies in these materials led very quickly to development of textile, wood and ceramic containers. These materials were an improvement, but still did not effectively protect food from insects, rodents and diseases that plague mankind, nor did they guard some nonfood products from the two main ravages of moisture and air – rot and rust.

The next step in packaging, one of the most important advances ever made by man, did not occur until early in the nineteenth century. It was the heat sterilization of perishable foods in metal and glass containers. It took another hundred years before frozen foods were developed, making the nutrition, taste and convenience of fresh foods in economical paperboard packages available year–round to a significantly large population.

A world conflict forty five years ago spurred the creation of still newer packaging and distribution techniques capable of preserving foods, medicines, clothing and military machines and parts in climatic extremes ranging from steamy jungle heat to searing alpine cold. Thin metal foils and plastic films, sheets and coatings were the key innovations that made these developments possible.

Since the mid – 1970s, increasing cost of distribution – initiated by a steep rise in fuel prices – created an ongoing revolution in packaging structure


Training Program

aimed at reducing the volume and weight of both unit-of-use and shipping containers.

In short, the industrial countries of the world have made more progress in the packaging, storage and distribution of goods in the last 100 years than in all of the previous time since man first walked the earth. The progress also appears to be accelerating.

This development of sophisticated packaging that protects products from both physical and environmental changes has enabled advanced societies to locate food-growing and product-manufacturing facilities where they are most practical from the standpoints of climate, raw material availability, labor supply and power.

The Need for Packaging:

Efficient packaging is a necessity for almost every type of product, whether it is mined, grown, hunted, extracted or manufactured. It is an essential link between the product maker and his customers, and unless performed correctly the reputation of the product will suffer and the good will of the producer will be lost. All the skill, quality and reliability built into the product during development and production will be wasted unless care is taken to see that it reaches the ultimate user in the correct condition. Properly designed packaging is the main way of ensuring safe delivery to the final user in good condition at an economic cost.

Thus, the packaging functions require specialized knowledge and skills, in addition to the specific machinery and facilities, to produce a package which will provide most, if not all, of a number of basic requirements:

“Containment, protection and preservation, communication, suitability for the packaging line (i.e. machine ability), convenience in shape, size and weight for handling and storage, adaptation for the use of the product it contains, and environmentally friendly in respect of manufacture, use and disposal.”

More over, these basics must be provided at one or all the levels of packaging usually employed, viz. the primary packaging, the secondary packaging or shipping containers and the tertiary packaging or the unit load.

Now I would like to discuss the basic needs of the packaging in a little more detail.

Containment:


Training Program

Obviously, the packaging must hold all the contents and keep them secure during the period between the end of the packaging line and the time when the last of the contents have been finally utilized.

Protection and preservation:

Briefly, the packaging must protect the product from both the mechanical and climatic hazards of the environment through which the package will pass during distribution and use.

Communication:

All retail packaging must obviously communicate, for not only do they have to identify the contents and meet the legal requirements, but also often they must assist in selling them. The unit load and/or the shipping container must inform the carrier about the destination, provide any instructions about the handling and storage of the goods and perhaps inform the user as to the method of opening the package and assembling the contents as well.

Machine ability:

The great majority of modern retail packages and many transport packages are today erected, filled, closed and collated on machinery operating at speed of 1,000 units or more per minute. They must therefore perform without too many stoppages or the process will be wasteful of material and uneconomic. Even when the numbers concerned are small and the items are specialized, the need for a good performance in filling and closing operations is still important.

Convenience and use:

The most common impression of convenience in items of retail packaging is that of providing easy opening, dispensing and/or after use. Both the shipping containers as well as the retail package must provide convenience at all stages from the packaging line, through warehousing and distribution, as well as satisfying the needs of the user of the product.

TYPES OF PACKAGING:

There are three main categories in which “Packaging” can be divided;


Training Program

SHIPPING CONTAINERS:

Shipping containers in packaging trade signify cartons made from corrugated board.

FLEXIBLE PACKAGING:

This includes packs made from flexible material like Plastic films, Aluminum foil and Paper or combination of these.

FOLDING PACKS:

This includes Duplex board and Box board packs to carry individual or set of products like, Cigarettes, Match boxes, Tea, Detergents etc.

CARTON LINE

This is the largest printing section of Packages Limited. This department has the largest share in the total Packages Limited sales, which is about 55%. There are 12 printing machines in this section, which are used for printing on duplex board. There are two Varnishing machines and one laminator machine. This printing facility is available from two to six colors. These machines use oil-based ink. Normally they print Cigarettes cartons, Biscuits, Shoes boxes, tissue cartons and Tea boxes.

PRINTING MODE:

In the Carton Line the printing Mode is offset.


Ink Plate Blanket

Sheet

Training Program

PROCESS FLOW:

FLEXIBLE LINE

In the Flexible Line there are two departments:

Poly & Paper Converting Department

Flexible Packaging Department


Sheet Feeding

Offset Printing

Cutting &

Creasing

Separation

Folding & Gluing

Bundling

Dispatching

Flats/Unit cartons

Bundling

Training Program

1) POLY & PAPER CONVERTING DEPARTMENT (PC):

Poly & Paper Converting Department was established in 1971. This department is second major department in Packages Limited. It converts poly and paper into packing material. By Flexographic & Rotogravure Printing we can get paper or bags in reel forms. It only uses paper and other poly materials. No board is used in this department. Printing in the Poly & Paper Converting department is done in several forms:

Printing & Conversion of Paper

Preparing & Printing Polyethylene bags

Preparing Aluminum Foils

Preparing Gum Tapes

Paper Cups & Plates

2) FLEXIBLE PACKAGING DEPARTMENT (FP):

As the demand for sophisticated packaging grew, Packages Limited established Flexible Packaging Department in 1986 that is fully equipped to manufacture high quality packaging. Molded from synthetic materials, rubber plates are used in Flexographic. It uses the Rotogravure printing technique. This Rotogravure printing is best for food items, for this type of packaging 98% material is imported; as a result it is the most expensive printing technique.

This printing is more expensive than stereotype printing. Metallic Cylinder is used in order to get fine printing. This cylinder picks the six color solvent based ink. The material’s surface should be 100% glossy and smoother. It processes films whether they are paper, poly or aluminum foil based, are laminated by containing two or more layers so as to give the required barrier properties against moisture, gases and odors. It produces packaging for soap and confectionery industry. The printing is done in very attractive colors and designs.

1) POLYETHYLENE SECTION:

Packages Limited manufactures and prints high density Polyethylene from 12 grams to 60 grams. And in case of low density Polyethylene it is 20 to 150 grams. In the Poly Section Polythene is made.


Training Program

Process Flow:

2) FLEXIBLE PRINTING DEPARTMENT:

Flexible Line is the department, which handles the printing of flexible materials. The department has latest machinery to perform day-to-day operations

CORRUGATED LINE

For large-scale packaging, Packages Limited has been manufacturing “Corrugated Cartons” since 1971. These cartons are produced in different sizes and are used for transporting consumer products from manufacturer to retail outlets. The share of Corrugated Department in Packages Limited total sales is almost 20%, which is second after the Carton Line. Corrugated cartons are of great value for the export of fresh fruits, garments and shoes. A wide variety of gums tapes for sealing corrugated cartons are also manufactured

The production process was completed in two halls. Paper needed for this purpose was also prepared within the factory premises at the Paper & Board Mill. Then this paper was first processed through the corrugated machine, which transforms the paper into single wall and double wall as required and mentioned earlier. Afterwards, the corrugated are processed through the Flexo machine where they are shaped according to the requirement of the customer, for example, into a rectangular or square shape.


Polygrains Extruders Melting

Air pressure

Cutting Oxidizing

Poly

Training Program

Process Flow of Making Corruwall (CWCs) Sheets:


Reel / Liner

Flute Plant

C Flute

Dispatching

Bundling

Corowall Sheets

Cutting & Creasing

Heating & Gluing

Double Baker

B Flute

Training Program

CONSUMER PRODUCT DIVISION (CPD)

Consumer Product Division (CPD) normally known as Rose Petal actually deals in tissue industry. This department is for consumer marketing. Almost all the marketing concepts, I studied are practically implemented here. The marketing mix is prepared here and so on. The detail is discussed in the marketing department section.


Training Program

Work Done Bye Me

In

FINANCE DEPARTMENT

Working with Packages LTD, I got very broader visions about company’s fund, export and financial activities. What were those experiences? I would like to share them in this report.

FUND SECTION

At first, I was sent to fund section of account department. I spend more then three weeks in this section. This dept. deals with all kinds of funds e.g. provident, pension, gratuity, welfare, wppf.

Details are given below

1 - PROVIDENT FUND

Packages Limited Employees Provident Fund is recognized under Income Tax Rules. Provident Fund Contribution is deducted from the wages and salaries of confirmed employees at the rate of 10% of basic salary + cost of living allowance. The company also contributes an equal amount.

BOOKS

Cashbook of provident fund is daily maintained manually i.e. receipts, cheques & refundable loan payment voucher etc. are posted daily.

Journal of provident fund is manually maintained for posting adjusting entries and monthly collection.

Ledger of provident fund is manually maintained; monthly entries are posted from cash book and journal.

MAIN ACCOUNT SYSTEM

Deduction against provident fund is made from monthly salaries and wages through Payroll program. The amounts deducted from the salaries and wages and company's contribution are posted to company's book with following accounting entries.


Training Program

Description of assets Dr Cr

Respective salary/wages ***

Company's contribution ***

Employee's contribution ***

This report indicates the following details relating to provident fund.

a) E/No.

b) Name

c) Department

d) Amount of loan

e) Amount of loan installment 0 Loan outstanding balance.

LOANS TO EMPLOYEES

The confirmed employees can either draw a refundable or non-refundable loan.

Refundable loans.

Refundable loan is granted on the basis of 6 basic pay + cola, for the purpose of house repair, marriage, medical treatment, funeral expenses and other reasons as provided in the income tax rules for recognized Provident Funds. It can be sanctioned at any time.

The refundable loan is repaid in 24/48 equal monthly installments.

The applicant has to apply for the above loan as par prescribed loan application form duly recommended by the head of the applicants department.

Refundable loan payment voucher are prepared / processed through the main account system by entering following data:

E/No.

Date of loan

Amount of loan

Amount of loan installment

No of loan installment


Training Program

The loan application after processing by the fund section is sent to the head of applicant's department for verification of the signatures.

After such verification cashier makes payment in cash.

Non refundable loans

Non-refundable loan vouchers/ cheques are prepared manually non-refundable loan is granted on the basis of 326 basic pay + cola, for the purpose of house construction or purchase of plot for residential purpose as provided in the income tax rules for recognized provident funds u/s 80.

The non-refundable loan is not repaid. And also it is sanctioned 2 times in jot life. Non refundable loan is not useful for employees because at the end of job, that particular amount is not going to be collected

The applicant has to apply for the above loan as per prescribed loan application form duly recommended by the head of the applicants department.

The following conditions are to be fulfilled by the applicant for getting non-refundable loan.

Must provide original land document/advance payment document

Map of the land

Assignment of the land in the name Trustees

A declaration must be furnished to the Trustee for non- payment of Zakat.

A cross cheque is prepared which is checked by Incharge provident fund and is sent to deputy controller of the accounts for counter check, then to the trustee of the fund for final authorization of loan and signing of cheque.

The loan application & voucher after processing by the fund section is sent to head applicant's department for the verification of the signatures.

After such verification a cross cheque is handed over to the applicant.

The loan so granted to the employees is debited to his account through main account system.

RECEIPTS


Training Program

A receipt is issued against the refund of loans.

The receipt indicates:

Receipt No

Date

Employee Name, E/No & Dep’t.

Amount of loan refunded

The receipt so issued to the employee is credited to his account through the main account system.

REFUND OF MARKUP

Markup is refunded to an employee upon repayment of the refundable loan before the tenure of loan. For this purpose the employee has to apply for the refund of markup on the prescribed form. Markup is refunded in cash.

FINAL SETTLEMENT

Upon the resignation, termination, dismissal or retirement of an employee the final settlement voucher is made. Before preparation of final settlement voucher information is received by fund from the I.R.deptt, mentioning the reason and date of exit of an employee from the company's service.

Final settlement vouchers are prepared through main account system.

A cross cheque prepared for the payment of final settlement, is checked by Incharge provident fund, and Deputy Controller of accounts, and is signed by the trustee of the fund.

The final settlement voucher after processing by the funds section is sent to the head of the applicant's department for the verification of the signatures.

After such verification a cross cheque is handed over to the employee individual.

INVESTMENT

The amount of provident fund is invested in post office saving certificate and other government securities


Training Program

YEARLY MEMBER TRIAL BALANCE

Yearly Member trail balance is drawn through the main account system, which shows:

E/No.

Dep’t.

The summary of Members & company's contribution

Profit on Members & company's contribution

Amount of outstanding refundable loan

Amount of refundable loan

Net balance

Yearly member trial balance of senior manager is maintained with the D.C.O.A.

Yearly member's trial balance of managers is maintained with the I / C pay roll section.

2 - PENSION FUND

Packages Limited Management Staff Pension Fund is approved under Income Tax Rules. Management Staff Pension Fund Contribution is deducted from salary of he confirmed employee @ 4.5% of basic pay +COLA and 20% of basic pay contributed by the company.

BOOKS

Cash book of pension fund is manually maintained on daily basis i.e. receipt, cheques.

Journal of pension fund is manually maintained for posting of adjusting entries and monthly collection.

Ledger of pension fund is manually maintained; monthly entries are posted from cash book and journal.


Training Program

COLLECTION OF FUND

Monthly collection voucher is prepared from the statement of accounts maintained by packages Limited, in respect of pension fund contribution deducted from the salaries. The amount is deposited into bank account of the fund. Money in excess of the current requirement is invested in the securities as per rule 20 of Trust Act.

FINAL SETTLEMENT

Procedure adopted is same as in provident fund.

Investment

Investment voucher are prepared manually for the excess amount invested after payment of pension and final settlement in the securities investment securities are kept in safe custody with the bank of the fund the bank provides a safe custody receipt to the trustees

3-GRATUITY FUND

Gratuity fund is approved under the Income Tax Rules. This fund is maintained to provide gratuity to all permanent employees having completed at least 10 years service before retirement. The retirement age is 58 years. All the permanent employees are entitled to become members of the gratuity funds.

BOOKS

Cashbook of gratuity funds is manually maintained on daily bases that is receipt cheques.

Journal of gratuity fund is manually maintained for posting of adjusting entries and monthly collection.

Ledger of gratuity fund is manually maintained; monthly entries are posted from cash book and journal.


Training Program

MAIN ACCOUNTS SYSTEM

Contribution against gratuity fund is made from monthly salaries and wages through payroll program.

The amount contributed by the company is posted to company's book with following accounting entries:

Description Dr Cr

Respective salary ***


COLLECTION OF FUNDS

Monthly collection voucher is prepared from the ledger account maintained by packages Limited in respect of gratuity fund contribution @ 8.33% of basic salary contributed by the company.

FINAL SETTLEMENT

Final settlement vouchers are prepared for those employees who resign / retire or expire having completed at least 10 years service in the company.

GRATUITY PAYABLE ON RETIREMENT AND RESIGNATION

Gratuity will be payable at following rates

Minimum service 10 years

I-5 Years 0.33 of the month last drawn salary/wages per year

6-15 Years 0.75 of month's basic salary / wages per year

11-25 year One month's basic salary/wages

26 Years and above 1.25% of month's basic salary / year

If a member dismissed from the service of the company due to misconduct, no gratuity will be payable to that member


Training Program

4 - WELFARE FUND

Employees Contributory Welfare Fund is established to provide financial assistance to the employees and their families.

This fund is maintained to assist members under following circumstances.

SICKNESS

A member suffering from a prolonged illness has left with no league of any kind at his or her account and he is allowed by the competent authority leave without pay on account of sickness.

TOTAL DISABLENESS

A member who become totally disable physically / mentally to perform her duties and who is not entitled to any other benefit from any other source.

ON THE DEATH OF A MEMBER

The widow of the deceased member and his unmarried dependent children not over 21 years of age are entitled to financial assistance from the fund.

In case where no one of them is an earning hand then widow will get 60% of the allowable grant and unmarried dependant child or dependant children not over 21 years of age will get 40% of allowable grant. In case if the children are earning hand then widow will receive 75% of the allowable grant.

Dependents of a member who expires under the circumstances, which cannot be termed as a works incidence will be entitled for assistance.

The members drawing benefit from the fund on account of sickness or totally disableness submit themselves to medical checkups as and when so required. A member desirous of getting financial assistance from the fund puts an application by the 7th of every month the committee decides all the cases by the 15th of every month.

BOOKS

Cash book of welfare fund is manually maintained on daily bases that is receipt and cheques.

Journal of welfare fund is manually maintained for posting of adjusting entries and monthly collection.


Training Program

Ledger of welfare of fund is manually maintained; monthly entries are posted from cash book and journal.

MAIN ACCOUNT SYSTEM

Deduction against welfare fund is made from monthly salary and wages through payroll program.

Description Dr Cr

Respective salary/wages ***


Employee's contribution ***

CONTRIBUTION OF FUND

Member will make contribution to the fund at the following rates

Employees drawing basic salary up to Rs. 1000per month Rs. 6.00 p.m

Employees drawing basic salary up to Rs. 1000-2000 per month Rs. 10.00 p.m

Employees drawing basic salary of Rs. 2001 and above Rs15.00 p.m

An employee can attain grant subject to minimum of Rs. 1000 and maximum of Rs.

10000.

COLLECTION OF FUNDS

Monthly collection voucher is prepared from the ledger account maintained by the packages limited in respect of welfare fund contribution deducted from the


Training Program

wages and salaries and equal amount contributed by the company amount deposited into bank account of the fund.

NEW SUGGESTION

There is another suggestion under consideration that if an employee's family need kidney transplantation then grant from worker welfare fund will be provided.

5 - WORKERS PROFIT PARTICIPATION FUND

Under workers profit participation fund act 1968 workers are made share holders in the profit of the companies on the finalization of annual account of the company the

Amount is transferred to the workers participation funds account as laid down in workers profit participation Fund Act.

Total amount available for distribution is divided by number of shares and value of shares is ascertained. Value of share is multiplied by number of shareholdings of a worker and amount is paid accordingly keeping in view that total amount paid should not exceed Rs. 5000 in any case. The excess amount over and above Rs. 5000 is deposited with Government Treasury as laid down in worker's profit participation Fund Act.


Training Program

SALES TAX SECTION

Sales tax is imposed on sales, all related jobs are merely performed in sales accounts , on invoices 15% sales tax are added to make final price, in case of unregistered assesses 3%more sale tax is payable.

In sales department, supply register is maintained as per sales tax act, it could be monitored on daily basis or at the end of month if it is maintained through computers, all information are reconciled by general ledger, it contains

Customer Name & code.

Tax no.

Invoice no.

Description of goods.

Quantity.

Rate.

Sales tax (out put)

Some supplies are exempt from sales tax to 6 schedule of sales tax act, previously packaging material for medicine was exempt, but now it is also charged by tax. Some supplies are Zero-rate, under section 4, all exports goods as well as packing material for PIA for international flights are zero rate.

All related information about purchase made by packages are recorded in purchase register, from bills cut-off of all purchases is segregated into local suppliers, imports and spares,2 things are taken into consideration while


Training Program

calculating input sales tax that it relates to taxable goods and secondly use for manufacturing or not, it contains

Tax no.

Invoice no.

Seller name & code

Description of goods

Quantity

Rate

Sales tax (input)

After calculating inputs 7 outputs taxes, total tax liability is calculated (output-input),if it is positive figure then it is payable otherwise if it is negative then refund is carry forward, it is carry forward till one year refund is claimed. Tax return are adjustable against invoices of same period, if there is time part between invoice adjustment & return, then refund is claimed to collector, he may after satisfaction may allow adjusting.

Sales tax refund in case credit note are issued, sales tax accounts will be debited by the amount charged to sales tax, however, refund of sales tax is subject of time period passed after invoicing. The major time spans are divided as

On & before 90 days

On & before 180 days

After 180 days


Training Program

FINANCIAL ANALYSIS OF PACKAGES LTD

Financial Ratio Analysis is an exercise carried out to determine liquidity, credit worthiness, management efficiency and profitability of a business entity.

OBJECTIVES

For assessment of profitability of the business.

For assessment of stability and financial strength of the business entity.

Assessment of efficiency of resources utilization.

Assessment of potentials of profitability.

Evaluation of different management controls.

FINANCIAL ANALYSIS

The strength of any organization can be better judged by analyzing its balance sheet and its other statements of accounts. The financial statement of any organization shows the results of its operation and its position in business.

The data of balance sheet and income statement give idea about firm position but it is better judged by analysis. By comparing of degree of changes in


Training Program

different items .the comparison shows the fluctuation in assets and liabilities of business.The financial statements of organization usually includes following:

Balance Sheet

Profit & Loss Account

Cash Flow Statement

Statement of Changes in Equity

SIGNIFICANCE OF FINANCIAL ANALYSIS

Financial statements report on both a company’s position at a given time and its operations over some past period. However, their real usefulness is that they can help to predict the company’s future earnings and dividends, as well as to examine the risk of these figures. From an equity investor’s point of view, predicting the future is what financial statement analysis is all about. Of course, current debt holders and others who are considering lending to the company are also concerned with the company’s future. As the company’s debt and equity investors are usually concerned with different aspects of the company’s prospects. From management’s point of view, financial statement analysis is useful both as a way of anticipating future conditions and, more importantly, as a stating point for planning actions that will influence the future of the company.

TOOLS FOR FINANCIAL ANALYSIS

These statements can be suitable to make an idea about business performance. Here, I have used the following tools for financial analysis:

Horizontal Analysis

Vertical Analysis

Ratio analysis

Horizontal analysis


Training Program

Through this analysis we can highlight the changes occurred in the current year in balance sheet and profit and loss account. The Last year becomes base for next year and changes can be easily analyzed.

Formula:

VERTICAL ANALYSIS

Vertical analysis helps us to show the actual increase or decrease in various items of Profit and Loss Statement with regard to a specific base as Markup Interest Earned and for balance sheet items Total Assets are taken as base for balance sheet items and net revenue is taken as base for profit and loss statement items. This analysis is also called Common- size Analysis.

RATIO ANALYSIS

Ratios are invaluable aids to management and others who are interested in the analysis and interpretation of financial statements. Absolute figures may be misleading unless compared, one with other. Ratios provide a means of showing the relationship between figures. Though there is no special magic in ratio analyses, many prefer to base conclusions on ratios as they find them highly useful for making judgments more easily.

The following ratios are used here for ratio analysis;

Liquidity Ratios

Current ratio = Current Assets / current liabilities


(Current Year/Base Year)*100

Training Program

Quick or acid test ratio = current assets – inventory / current liabilities

Asset Management Ratios

Total assets turnover or utilization ratio = sales / total assets

Fixed asset turnover or utilization, ratio = sales / net fixed assets

Inventory turnover or utilization, ratio = sales / inventory

Days sales outstanding ratio = receivables / averages sales per day

Debt Management Ratios

Earning power ratio = EBIT / total assets

Debt ratio = total liabilities / total assets

Time interest earned ratio = EBIT / interest charges

Profitability Ratios

Profit margin = net income / sales

Return on total assets = net income / total assets

Return on equity = net income / equity

SIGNIFICANCE OF TOOLS

The horizontal can be used to compare the current year’s figures with the last one. It will help to find the actual position at which the company is standing as compared to the last year. The formula for horizontal analysis is given above.

It helps to calculate the actual increase or decrease in various items of balance sheet and profit and loss statement that can be useful in interpreting


Training Program

the financial position of the organization. It can have a lot of interest for the investors lending their resources to the company.

Ratio Analyses is a tool used in financial analysis. It is the most popular technique of financial analysis. A ratio is the indicator of the quantitative or arithmetical relationship between two variables. It can be expressed in terms of fraction, percentage or proportion. In financial analyses a ratio is used as a yardstick for evaluating the financial position and performance of a firm. The liquidity ratios show the relationship of a company’s current assets to its current obligations; they indicate the company’s ability to meet its maturing short-term debts. Asset management ratios measure how effectively a company is managing its assets. Debt management ratios measure the extent to which the company is financed with debt; and the company’s ability to meet

its interest and other fixed obligations. Profitability ratios show the combined effects of liquidity, asset management and debt management on operating results.

Liquidity Ratios

a. Net Working Capital:

Net working capital = Total Current Assets – Total Current Liabilities

2006: 3414222000 – 2312224000 = 1101998

2007: 4837402000 – 1965381000 = 2872021

Interpretation:

The firm net working capital is calculated by subtracting total current liabilities from the total assets. These figures are not useful for comparing the performance of different firms. But it is quite useful for internal control.

b. Current Ratio. Current Assets


Training Program

Current Liabilities

2006: 3,414,222,000

2,312,224,000

= 1.47

2007: 4,837,402,000

1,965,381,000

= 2.46

Interpretation:

The current ratio is one of the most commonly sited financial ratios, measures the firms ability to meet its short-term obligations. A current ratio of 2.0 is occasionally cited as acceptable, but acceptability of the value depends on the industry in which a firm operates.

c. Quick Ratio/Acid test Ratio.

Current Assets-inventory-prepaid exp.

Current Liabilities

2006: 3,414,222,000 – 1647173000

2,312,224,000

=.764

2007: 4,837,402,000 – 2206191000

1,965,381,000

=1.34

Interpretation:


Training Program

The quick ratio is similar to the current ratio except that it excludes inventory. It tells that how much the liquid assets can finance the current liabilities. A quick ratio of 1.0 or greater is occasionally recommended, but as in case with the current ratio, an acceptable value depends largely on the industry.

Activity Ratios.

a. Inventory Turnover.

Cost of Goods Sold

Inventory

2006: 6551995000

1647173000

= 3.98

2007: 7829362000

2206191000

= 3.55

Interpretation:

Inventory turnover of the company is reduced slightly over the last financial years and this fact is mainly due to higher production figures with increase of Cost of Goods sold.


Training Program

b. Average Collection Period.

Accounts Receivable

Average Sales per Day.

2006: 821160000

9027907000/180=16.37 days

2007: 1288928000

10539995000/180=22 days

Interpretation:

Although average collection period of the company has risen by six day, this is mainly because of higher volume of sales in year 2007.

c. Total Assets Turnover.

Sales

Total Assets

2006: 9027907000

22673476000

= .399

2007: 10539995000

33438443000= .315

Interpretation:


Training Program

Although total assets turnover ratio has declined over the last financial years, it is mainly so because sales have risen but not to the extent to meet the assets acquired by the company in year 2006 to finance Bulleh-Shah Paper Mill Project.

Debt Ratios.

a. Debt Ratio.

Total Liabilities

Total Assets

2006: 9000679000

22673476000= 0.396

2007: 15267671000

33438443000= 0.456

Interpretation:

Debt Ratio has increased over last years. This is mainly so because the Bulleh-Shah Paper Mill Project is financed by the company through loans.


Training Program

b. Times Interest Earned Ratio.

Earning Before Interest & Tax

Interest

2006: 757613000

78909000= 9.60

2007: 587598000

367378000= 1.60

Interpretation:

Although times interest earned ratio has fallen in last years mainly because of reduction of operational profits, it has declined in 2007 because of cost of loans to finance Bulleh-Shah Paper Mill Project.

Profitability Ratios.

a. Gross Profit Margin.


Training Program

Gross Profit

X 100

Sales

2006: 1294604000 X 100

9027907000= 14.34

2007: 1199273000X 100

10539995000

= 11.37

Interpretation:

Although GP margin has fallen significantly over last years, sales of the company have also risen in the same period. However cost of goods sold rise significantly in year 2007 which causes the reduction in GP-Margin.

b. Operating Profit Margin.

Operating Profit

X 100

Sales

2006: 757613000X 100

9027907000=8.39

2007: 587598000X 100

10539995000= 5.57

Interpretation:


Training Program

Although OP margin has fallen in last years, it declined in year 2007 mainly because of higher selling and administrative expenses which were necessary to gain higher sales in the same period.

c. Net Profit Margin.

Net Profit

X 100

Sales

2006: 6100780000X 100

9027907000

=67.57

2007: 4325948000X 100

10539995000=41.04

Interpretation:

We can see clearly that Net Profit margin has declined in last years but this is mainly so because of increase in cost of sales and debts taken by the company in year 2007.

c. Earning Per Share.

Earning Available for Common Stockholders

Common Outstanding Shares

2006: 6100780000

698795000= 8.73

2007: 4325948000


Training Program

733735000= 5.90

Interpretation:

It can be observed that earning per share has fallen in last years because of decline in profits. EPS declined in 2007 mainly because of issuance of shares to finance Bulleh-Shah paper Mill Project.

d. Return On Assets.


X 100

Total Assets

2006: 6100780000X 100

22673476000= 26.91

2007: 4325948000X 100

33438443000= 12.94

Interpretation:

It can be observed that Return on Assets has fallen over last year and this is mainly because of the fact that total assets of the company also increased mainly to support the rise in production and to support the company earn profit through increased sales.


Training Program

e. Return On Equity.


X100

Common Stockholders Equity.

2006: 6100780000X100

7571131000= 80.58

2007: 4325948000X100

13843975000= 31.24

Interpretation:

ROE has declined significantly mainly because of increasing stockholders equity which is a good sign and on the other hand, earning for stockholders has fallen significantly.


Training Program

PACKAGES LIMITED

VERTICAL ANALYSIS OF BALANCE SHEETS

Packages Limited

Vertical Analysis Of Balance Sheet

2007 2006

% %

EQUITY AND LIABILITIES

CAPITAL AND RESERVES

Issued, Subscribed and paid up capital 2.19 3.08

Reserves 39.21 30.31

Unappropriated Profit 12.94 26.91

NON-CURRENT LIABILITIES

Long-term finances - Secured 36.92 26.46

Deferred liabilities 2.86 3.04


Training Program

CURRENT LIABILITIESCurrent portion of liabilities against assets subject to finance lease

- 0.004

Finances under mark up arrangement - secured 1.20 5.65

Trade and Other Payables 4.68 4.546

TOTAL 100 100

2007 2006

% %

ASSETS

NON CURRENT ASSETS

Property, plant and equipment 30.99 13.54

Intangible assets 0.001 0.01

Investment property 0.08 0.06

Assets subject to finance lease - 0.008

Capital work in progress 23.33 44.73

Investment 30.14 25.47

Long-term loans and deposits 0.73 0.86

Retirement benefits 0.26 0.31

CURRENT ASSETS

Stores and spares 2.14 2.14

Stock-in-trade 6.60 7.26

Trade debts 3.85 3.62

Loans, advances, deposits, prepayments and other receivables

1.58 1.56


Training Program

Cash and bank balances 0.30 0.47

TOTAL 100 100

Evaluation

In the vertical analysis oh the balance sheet, total assets are taken, as base and percentages of other balance sheet items to the total assets is determined. On the liabilities and capital side of the balance sheet reserves contribute as a major portion to this side. In the non-current liabilities section long-term finances are the major contributor. This means that company is not paying to its creditors on regular basis.

On the asset side, property, plant and equipment make a larger portion and their percentage has been increase as compare to the year 2006. It shows that company has interested in its fixed assets in the year 2007. Company is interesting in expanding its business. Capital work in progress and investment are also the major contribution towards fix assets.


Training Program

PACKAGES LIMITED

VERTICAL ANALYSIS OF Profit And Loss Account

Description 2007 2006 2007 2006 Evaluation

Net Sales. 9028635 7846599 100% 100% Better

Cost of Goods Sold. 7829362 6551995 86.72 83.50 Worse

Gross Profit 1199273 1294604 13.28 16.50 Worse

Administration expenses.

348064 349934 3.86 4.46 Better

Distribution and marketing expenses.

240357 225587 2.66 2.87 Better

Other operating expenses

145439 213475 1.61 2.72 Better

Other operating income

122185 252005 1.35 3.21 Worse

Profit from Operations

587598 757613 6.51 9.66 Worse

Finance cost. -367378 -78909 -4.07 -1.01 Worse

Investment income. 4412728 5669136 48.87 72.25 Worse

Other charges. ------

Profit before Tax 4632948 6347840 51.31 80.90 Worse


Training Program

Taxation. -307000 -247060 -3.40 -3.15 Worse

Profit for the year 4325948 6100780 47.91 77.75 Worse

EVALUATION

In the vertical analysis of income statement, sales are taken as base figure and the percentage of other Income Statement items are determined to the sales. As cost of goods is the major contributor but it has increase to 3.22 % as compare to the last year. The cost of goods sold in 2006 was 83.50 % of the sales and increase in 2007 to 86.72 %. This is not a satisfactory sign for the company.

This increase in cost of goods has produces an overall decreasing trend in the remaining items like adm. Expenses, manufacturing cost etc. But financial charges have increase. Net Profit is 47.91 % of the total sales and it has decreased as compare to the last year 77.75 %, which is not good for packages.


Training Program

PACKAGES LIMITED

HORIZONTAL ANALYSIS OF BALANCE SHEETS

Equity and Liabilities 2006(‘000)

2007(‘000)

2006%

2007%

%Age Change

(Rupees in thousands)Share Capital and ReservesAuthorized Capital150,000,000 shares of Rs.10 each (2007:150,000,000 shares)

1,000,000 1,500,000 100 150 50

Issued, subscribed and paid up capital73,373,482 shares of Rs.10 each (2006:69,879,507)

698,795 733,735 100 105 5.0

Reserves 6,872,336 13,110,240 100 190.77 90.8Unappropriated Profit 6,101,666 4,326,797 100 70.912 -29.1 13,672,797 18,170,772 100 132.9 32.9Non-participatory redeemable capital (unsecured)

------ ------

Non-Current LiabilitiesLong-term Finances 6,000,000 12,346,500 100 205.78 105.8Deferred Liabilities 688,455 955,790 100 138.83 38.8Call option obligation ------ ----- Net Fixed Liabilities 6,688,455 13,302,290 100 198.88 98.9Current LiabilitiesCurrent portion of long-term liabilities 851 ---- 100 0 -100Finances under mark-up arrangements-secured

1,280,857 401,019 100 31.309 -68.7

Other payables- secured ------ 1,564,362 100Derivative foreign currency forward ------ ------


Training Program

optionsCreditors, accrued and other liabilities 1,030,516 -------- 100 0 -100Provision for taxation ------- --------Dividends ------ -------- Net Current Liabilities 2,312,224 1,965,381 100 85 -15.0Contingencies and Commitments ------Total Equity and Liabilities 22,673,476 33,438,443 100 147.48 47.5

Assets 2006(‘000)

2007(‘000)

2006 (%)

2007 (%)

%Age Change(Rupees in thousands)

Non-current Assets Property, plant and equipment 3,071,115 10,361,253

100 337.38 237.38Intangible Assets 2,532 363 100 14.34 -85.66Investment property 14,423 26,055 100 180.65 80.65Assets subject to financial lease 1,901 ----- 100Capital work-in-progress 10,143,195 7,800,683 100 76.91 -23.09Investments 5,775,665 10,080,259 100 174.53 74.53Long-term loans and deposits 180,618 244,166 100 135.18 35.18Retirement and other benefits 69,805 88,262 100 126.44 26.44 Net Fixed Assets 19,259,254 28,601,041 100 148.51 48.51Current Assets Stores and spares 485,665 715,840 100 147.39 47.39Stock-in-trade 1,647,173 2,206,191 100 133.94 33.94Trade Debts 821,160 1,288,928 100 156.96 56.96Investments ------- ------Loans, advances, deposits, prepayments and other receivables.

353,521 525,421

100 148.63 48.63Cash and bank balances 106,703 101,821 100 95.42 -4.58Net Current Assets 3,414,222 4,837,402 100 141.68 41.68Total Assets 22,673,476 33,438,443 100 147.48 47.48

Evaluation

In the horizontal analysis the company’s performance is not satisfactory though its sales increase by 15% but also Its CGS increase by 19% which is no a positive result for the company and reduces its Gross Profit. The


Training Program

company reduces its administrative expenses but increases distribution expenses. So, the company shows poor management of expenses which ultimately cause to reduce profit with almost 30% as compared to the previous year.

PACKAGES LIMITEDHORIZONTAL ANALYSIS OF PROFIT AND LOSS ACCOUNT

Description 2006

(‘000)

2007

(‘000)

2006

%

2007

%

%Age Change

Net Sales. 7846599 9028635 100% 115.06 15.06

Cost of Goods Sold.

6551995 7829362 100% 119.50 19.50

Gross Profit 1294604 1199273 100% 92.64 -7.36

Administration expenses.

349934 348064 100% 99.47 -0.53


225587 240357 100% 106.55 6.55


213475 145439 100% 68.13 -31.87


252005 122185 100% 48.49 -51.51


757613 587598 100% 77.56 -22.44

Finance cost. -78909 -367378 100% 465.57 365.57

Investment income.

5669136 4412728 100% 77.84 -22.16

Other charges. ------


Training Program

Profit before Tax

6347840 4632948 100% 72.98 -27.02

Taxation. -247060 -307000 100% 124.26 24.26

Profit for the year

6100780 4325948 100% 70.91 -29.09

Dilemmas

Today the biggest and primary problem to packages is the arm race, environment decay and education system. People’s thinking is dominated by the short-term events. So instead of investing in long run projects the company must help the market in reducing the tension being prevailed by the fixation of events.

Second the distribution of work among employees is not equal. Some have to do a lot and some very little amount of responsibilities.

The growing mushroom industry, which attracts the price (not quality) conscious customers, is a threat for Packages Limited.

Products of mushroom industry are cheap.

Advertise taxation policies of government are causing reduction in profitability.

The use of offset packaging is decreasing day by day, due to greater use of Polyethylene and disposable packaging.


Training Program

CONCLUSIONS & RECOMMENDATIONS

GOOD FEATURES

Packages Limited is a public limited company listed in the stock exchanges of Lahore, Karachi and Islamabad.

Packages Limited has backward linkages. It has its own Paper & Board Mill, which is producing all types of paper & board for packaging.

The company has the capacity to produce the complete range of packaging and have operations on a very large scale. None of its competitors has so wider operations and so deep range of packaging.

It is having the best positive brand image & reputation for quality packaging products in Pakistan.

It is having the most advanced, sophisticated & up to date machinery in Pakistan and even in Asia.

Due to mass production the cost is reduced and the company enjoys economies of scales.

It has ISO 9001 quality assurance certificates in five different lines or divisions.

It has latest machines (rotogravure Cerutti, flexographic, Lemanic inline cutting and creasing etc.) for the printing purposes.

The company has a modernized (RD&C) Department, which is fully equipped and can complete any RD&C department of any foreign company.

It is enjoying approximately 22% market share, which is greater than any other company in this business.

The company is having its own Power generation plant.


Training Program

It has an advanced management information system, Systems Application and Product in data processing (SAP).

Packages Limited has a Well-established name in Pakistan. o Its brand is widely accepted as a symbol of quality.

DRAW BACKS

Cannot take small orders.

Lack of motivation & intrinsic reward orientation among the management.

The procedure form getting an order to its completion is very lengthy with a new customer.

There is a lack of communication between different departments of the company.

Mostly, the orders are not, completed on time, due to the communication gap between the marketing people and the production people.

When the sales team goes out on customer's visits, there is no one in the department, who in his absence, may deal with his allotted customers.

There is high employee turn over in particular in the executives' posts.

The promotion process is very slow in the company.

For even a small change in the amount of budget approval process becomes very lengthy.


Training Program

CONCLUSION

Packages is one of the latest and pioneer packaging unit in Pakistan.

It also assists the other countries in paper technology and management.

The company is performing very well for the financial point of view.

It is leader in pulp & paper and packaging industry in Pakistan.

It pays a huge amount annually in the form of taxes to the government of Pakistan. This year they have paid one Arab and twenty three karor Rs. With the total profit of Six Arab.

"Rose Petal" tissues are very popular among customers.

The market share of Rose Petal is 75% approx and 20%-25% in packaging sector.

Company's distribution channels are very effective.

The packing of Rose Petal tissues is much attractive as compared with its competitors.

They make tissue for the consumption in Pakistan thicker or with more gram mage (15174) due to the people demand according to its uses in the extreme weathers of Pakistan.

It has more variety in tissue line as compared with the competitors.

It has monopoly in wet tissues.

It has large R & D budget.

The Company continuously enhances its superior technological competency to provide innovative solutions to its customers' needs.

The management of Packages Limited is very loyal to its "quality policy".


Training Program

Company's advertisement budget for Rose Petal is very high as compared to its competitors (Flying & Fay).

Packages Limited is in pulp & paper and packaging material manufacturing business since 1957, so its management has very vast experience in these fields.

Packages Limited mostly deals in industrial goods for which they never advertise.

In consumer products the management of Packages believes in "pull strategy" i.e. creating pull through advertising.

Recently consumer promotion has been introduced for certain consumer products.

All the products of Packages are doing fine in the market, so for the only product failed was "Cling Wrap". It failed due to limited demand in the market and high cost of production due to smaller production lots. The imported cling wrap was cheaper.

The prices of the products of Packages are higher than the competitors due to the fine quality, it provides.

It can also be concluded that Packages should reduce the prices of its tissues.

Since the people are getting easy going day by day so the future of Packages Limited is very bright as it makes disposable products.


Training Program

References

History Annual Reports

Culture Internal Audit

Human Resource Management HRD (Madam Asma)

Social Responsibility Production Department

Management information system Mr.Azhar

Personal Observation

www.packages.com.pk


Training Program

Balance Sheet for the two financial years 2006 and 2007 ending on Dec 31st

(Figures in Thousands of Rupees)

Equity and Liabilities(Rupees in thousands)

2006 2007

Share Capital and ReservesAuthorized Capital150,000,000 shares of Rs.10 each (2007:150,000,000 shares)

1,000,000 1,500,000

Issued, subscribed and paid up capital73,373,482 shares of Rs.10 each (2006:69,879,507)

698,795 733,735

Reserves 6,872,336 13,110,240

Unappropriated Profit 6,101,666 4,326,79713,672,797 18,170,772

Non-participatory redeemable capital (unsecured)

------ ------

Non-Current LiabilitiesLong-term Finances 6,000,000 12,346,500Deferred Liabilities 688,455 955,790Call option obligation ------ -----

6,688,455 13,302,290Current LiabilitiesCurrent portion of long-term liabilities

851 ----

Finances under mark-up arrangements-secured

1,280,857 401,019

Other payables- secured ------ 1,564,362Derivative foreign currency forward options

------ ------


Training Program

Creditors, accrued and other liabilities

1,030,516 --------

Provision for taxation ------- --------Dividends ------ --------

2,312,224 1,965,381Contingencies and Commitments

------

22,673,476 33,438,443

Balance Sheet for the two financial years 2006 and 2007 ending on Dec 31st


Assets(Rupees in thousands)

2006 2007

Non-current Assets

Property, plant and equipment3,071,115 10,361,253

Intangible Assets 2,532 363

Investment property 14,423 26,055Assets subject to financial lease 1,901 -----Capital work-in-progress 10,143,195 7,800,683Investments 5,775,665 10,080,259Long-term loans and deposits 180,618 244,166Retirement and other benefits 69,805 88,262

19,259,254 28,601,041

Current AssetsStores and spares 485,665 715,840Stock-in-trade 1,647,173 2,206,191Trade Debts 821,160 1,288,928Investments ------- ------

Loans, advances, deposits, prepayments and other receivables.

353,521 525,421

Cash and bank balances 106,703 101,8213,414,222 4,837,402

Total Assets 22,673,476 33,438,443


Training Program

Profit and Loss Accounts for the two financial year 2006 and 2007 ending on Dec 31st



Description 2006 2007Local Sales 8869087 10365224

Export Sales 158820 1747719027907 10539995

Less: Sales tax and excise duty.

1172430 1501230

Less: Commission 8878 101301187308 1511360

Net Sales. 7846599 9028635Cost of Goods Sold. (6551995) (7829362)Gross Profit 1294604 1199273Administration expenses.

(349934) (348064)


(225587) (240357)


(213475) (145439)


252005 122185


757613 587598

Finance cost. (78909) (367378)Investment income. 5669136 4412728Other charges. ------Profit before Tax 6347840 4632948Taxation. (247060) (307000)Profit for the year

6100780 4325948

Training Program

Concluding remarks

Gross sales to total sales of the company were increased in 2007. Finance reached 7.99% in 2007. Gross profit of the company was 16.50% in 2006 but now it has reduced to 13.28% in 2007. Other operating income was 9.96% in 2006 but now it is decreased to 6.51% in 2007. . Its profit before tax was 80.90% in 2006 and decreased to 51.31% in the year 2007. Net income to total sales was 77.75% and in 2006 it is decreased to 47.91% which indicates the decline of the company.

The overall performance of the company is not satisfactory.


Documents

Packages Internship Report