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.
Hailey College of Commerce

Training Program
ACKNOWLEDGEMENT
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.

Training Program
Preface
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.)

Training Program
Executive Summary
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.

Training Program
PACKAGES LIMITED
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.

Training Program
Environment, Health and Safety (EH&S) Policy
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.

Training Program
Tetra Pak Pakistan Ltd.
Established in 1982, Tetra Pak Pakistan Limited is a joint venture between

Packages Limited and Tetra Laval International, S.A., the worlds 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.

Training Program
International General Insurance Company of Pakistan Ltd. (IGI)
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.

Training Program
Major Divisions
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

Training Program
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
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.

Training Program
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
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.

Training Program
Work Environment
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

Training Program
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
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.

Training Program
Company profile
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

Training Program
AUDIT COMMITTEE
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.

Training Program
OPERATIONS
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.

Training Program
SUPPORT ACTIVITIES
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.

Training Program
SAP (SYSTEM APPLICATION 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.

Training Program
MANAGEMENT
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.

Training Program
MANAGERIAL POLICY & PRACTICES
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.

Training Program
RECRUITMENT OF DIPLOMA HOLDERS:

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 years service One month
7 years service to less than 10 years service months
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.

Training Program
During winter:
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.

Training Program
WELFARE AMENITIES
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

Training Program
Lamination Department
Folding and gluing Department
Dispatch Department
Quality control Department
Technical Department
Coates lorelleux (ink factory)
Tetra pack

Training Program
FIELD OF ACTIVITIES
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 consumers 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 nations 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

Training Program
Utilities Section
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 yearround 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:
Sheet Feeding
Offset Printing
Cutting &
Creasing
Separation
Folding & Gluing Bundling
Bundling
Flats/Unit
cartons
Dispatching
FLEXIBLE LINE
In the Flexible Line there are two departments:

Poly & Paper Converting Department
Flexible Packaging Department

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 materials 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:
Polygrains Extruders Melting
Cutting Oxidizing Air

pressure
Poly
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.

Training Program
Process Flow of Making Corruwall (CWCs) Sheets:
Reel / Liner
Flute Plant
B Flute C Flute
Double
Baker
Heating &
Gluing
Cutting &
Creasing
Corowall
Sheets
Bundling
Dispatching

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 companys 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 & Dept.
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.
Dept.
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
Ledger of gratuity fund is manually maintained; monthly entries are posted

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

Training Program
Ledger of welfare of fund is manually maintained; monthly entries are posted

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 companys position at a given time and
its operations over some past period. However, their real usefulness is that
they can help to predict the companys future earnings and dividends, as well
as to examine the risk of these figures. From an equity investors 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 companys future. As the companys
debt and equity investors are usually concerned with different aspects of the
companys prospects. From managements 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:
(Current Year/Base Year)*100
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

Training Program
Current ratio = Current Assets / current liabilities

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 years 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.

Training Program
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
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 companys current assets to its
current obligations; they indicate the companys 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 companys 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.

Training Program
b. Current Ratio.
Current Assets
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

Training Program
=1.34
Interpretation:
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:

Training Program
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.
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

Training Program
33438443000
= .315
Interpretation:
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

Training Program
= 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.
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.

Training Program
Profitability Ratios.
a. Gross Profit Margin.

Gross Profit
X 100
Sales
2006: 1294604000
X 100
9027907000
= 14.34
2007: 1199273000
X 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: 757613000
X 100
9027907000
=8.39
2007: 587598000
X 100

Training Program
10539995000
= 5.57
Interpretation:
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: 6100780000
X 100
9027907000
=67.57
2007: 4325948000
X 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

Training Program
2006: 6100780000
698795000
= 8.73
2007: 4325948000
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: 6100780000
X 100
22673476000
= 26.91
2007: 4325948000
X 100
33438443000
= 12.94
Interpretation:

Training Program
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.
e. Return On Equity.

X100
Common Stockholders Equity.
2006: 6100780000
X100
7571131000
= 80.58
2007: 4325948000
X100
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

Training Program
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
CURRENT LIABILITIES
Current portion of liabilities against assets subject to
- 0.004
finance lease
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

Training Program
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
1.58 1.56
receivables
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 348064 349934 3.86 4.46 Better
expenses.
Distribution and 240357 225587 2.66 2.87 Better
marketing expenses.
Other operating 145439 213475 1.61 2.72 Better
expenses
Other operating 122185 252005 1.35 3.21 Worse
income
Profit from 587598 757613 6.51 9.66 Worse
Operations

Training Program
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
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 2007 2006 2007 %Age

(000) (000) % % Change
(Rupees in thousands)
Share Capital and Reserves
Authorized Capital
150,000,000 shares of Rs.10 each 1,000,000 1,500,000 100 150 50
(2007:150,000,000 shares)
Issued, subscribed and paid up capital
73,373,482 shares of Rs.10 each 698,795 733,735 100 105 5.0
(2006:69,879,507)
Reserves 6,872,336 13,110,240 100 190.77 90.8
Unappropriated Profit 6,101,666 4,326,797 100 70.912 -29.1
13,672,797 18,170,772 100 132.9 32.9
Non-participatory redeemable capital ------ ------
(unsecured)
Non-Current Liabilities
Long-term Finances 6,000,000 12,346,500 100 205.78 105.8
Deferred Liabilities 688,455 955,790 100 138.83 38.8
Call option obligation ------ -----

Training Program
Net Fixed Liabilities 6,688,455 13,302,290 100 198.88 98.9

Current Liabilities
Current portion of long-term liabilities 851 ---- 100 0 -100
Finances under mark-up arrangements- 1,280,857 401,019 100 31.309 -68.7
secured
Other payables- secured ------ 1,564,362 100
Derivative foreign currency forward ------ ------
options
Creditors, accrued and other liabilities 1,030,516 -------- 100 0 -100
Provision for taxation ------- --------
Dividends ------ --------
Net Current Liabilities 2,312,224 1,965,381 100 85 -15.0
Contingencies and Commitments ------
Total Equity and Liabilities 22,673,476 33,438,443 100 147.48 47.5
Assets 2006 2007 2006 2007 %Age

(Rupees in thousands) (000) (000) (%) (%) Change
Non-current Assets
Property, plant and equipment 3,071,115 10,361,253
100 337.38 237.38
Intangible Assets 2,532 363 100 14.34 -85.66
Investment property 14,423 26,055 100 180.65 80.65
Assets subject to financial lease 1,901 ----- 100
Capital work-in-progress 10,143,195 7,800,683 100 76.91 -23.09
Investments 5,775,665 10,080,259 100 174.53 74.53
Long-term loans and deposits 180,618 244,166 100 135.18 35.18
Retirement and other benefits 69,805 88,262 100 126.44 26.44
Net Fixed Assets 19,259,254 28,601,041 100 148.51 48.51
Current Assets
Stores and spares 485,665 715,840 100 147.39 47.39
Stock-in-trade 1,647,173 2,206,191 100 133.94 33.94
Trade Debts 821,160 1,288,928 100 156.96 56.96
Investments ------- ------
Loans, advances, deposits, 353,521 525,421
prepayments and other receivables. 100 148.63 48.63
Cash and bank balances 106,703 101,821 100 95.42 -4.58
Net Current Assets 3,414,222 4,837,402 100 141.68 41.68
Total Assets 22,673,476 33,438,443 100 147.48 47.48

Training Program
Evaluation
In the horizontal analysis the companys 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
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 LIMITED
HORIZONTAL ANALYSIS OF PROFIT AND LOSS ACCOUNT
Description 2006 2007 2006 2007 %Age

Change
(000) (000) % %
Net Sales. 7846599 9028635 100% 115.06 15.06
Cost of Goods 6551995 7829362 100% 119.50 19.50
Sold.
Gross Profit 1294604 1199273 100% 92.64 -7.36
Administration 349934 348064 100% 99.47 -0.53
expenses.
Distribution and 225587 240357 100% 106.55 6.55
marketing
expenses.
Other operating 213475 145439 100% 68.13 -31.87
expenses
Other operating 252005 122185 100% 48.49 -51.51
income
Profit from 757613 587598 100% 77.56 -22.44
Operations
Finance cost. -78909 -367378 100% 465.57 365.57

Training Program
Investment 5669136 4412728 100% 77.84 -22.16

income.
Profit before 6347840 4632948 100% 72.98 -27.02
Tax
Taxation. -247060 -307000 100% 124.26 24.26
Profit for the 6100780 4325948 100% 70.91 -29.09
year
Dilemmas
Today the biggest and primary problem to packages is the arm race,
environment decay and education system. Peoples 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.

Training Program
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.
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.

Training Program
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".
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 2006 2007

Share Capital and
Reserves
Authorized Capital
150,000,000 shares of Rs.10 1,000,000 1,500,000
each (2007:150,000,000
shares)
Issued, subscribed and paid
up capital 698,795 733,735
73,373,482 shares of Rs.10
each (2006:69,879,507)
Reserves 6,872,336 13,110,240
Unappropriated Profit 6,101,666 4,326,797

13,672,797 18,170,772
Non-participatory
redeemable capital ------ ------
(unsecured)
Non-Current Liabilities
Long-term Finances 6,000,000 12,346,500
Deferred Liabilities 688,455 955,790
Call option obligation ------ -----
6,688,455 13,302,290
Current Liabilities
Current portion of long- 851 ----
term liabilities

Training Program
Finances under mark-up 1,280,857 401,019

arrangements-secured
Other payables- secured ------ 1,564,362
Derivative foreign currency ------ ------
forward options
Creditors, accrued and other 1,030,516 --------
liabilities
Provision for taxation ------- --------
Dividends ------ --------
2,312,224 1,965,381
Contingencies and ------
Commitments
22,673,476 33,438,443
Balance Sheet for the two financial years 2006 and 2007 ending on
Dec 31st
Assets 2006 2007

Non-current Assets
Property, plant and equipment

3,071,115 10,361,253
Intangible Assets 2,532 363

Investment property 14,423 26,055
Assets subject to financial lease 1,901 -----
Capital work-in-progress 10,143,195 7,800,683
Investments 5,775,665 10,080,259
Long-term loans and deposits 180,618 244,166
Retirement and other benefits 69,805 88,262
19,259,254 28,601,041
Current Assets
Stores and spares 485,665 715,840
Stock-in-trade 1,647,173 2,206,191
Trade Debts 821,160 1,288,928
Investments ------- ------
Loans, advances, deposits, 353,521 525,421

prepayments and other receivables.
Cash and bank balances 106,703 101,821
3,414,222 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 2007
Local Sales 8869087 10365224
Export Sales 158820 174771
9027907 10539995
Less: Sales tax and 1172430 1501230
excise duty.
Less: Commission 8878 10130
1187308 1511360
Net Sales. 7846599 9028635
Cost of Goods Sold. (6551995) (7829362)
Gross Profit 1294604 1199273
Administration (349934) (348064)
expenses.
Distribution and (225587) (240357)
marketing expenses.
Other operating (213475) (145439)
expenses
Other operating 252005 122185
income
Profit from 757613 587598
Operations
Finance cost. (78909) (367378)
Investment income. 5669136 4412728
Profit before Tax 6347840 4632948
Taxation. (247060) (307000)
Profit for the 6100780 4325948
year
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.

Packages Internship Report

Diunggah oleh

Informasi Dokumen

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

Packages Internship Report

Diunggah oleh

Hak Cipta:

Format Tersedia

Training Program

I DEDICATE ALL MY WORK TO ALL MY TEACHERS,

Hailey College of Commerce

Hailey College of Commerce

Hailey College of Commerce

PACKAGES LIMITED was established in 1957 and is the oldest composite

This report also consists of a comprehensive financial analysis of packages

I discussed specially Funds & Sales Tax Section of finance department in

Hailey College of Commerce

Hailey College of Commerce

To be a market leader by providing quality products and superior service to

To be a company that continuously enhances its superior technological

To be a company that attracts and retains outstanding people by creating a

To be a company which combines its people, technology, management

To be a company that endeavors to set the highest standards in corporate

Hailey College of Commerce

Packages is committed to the environment. We realize that we live in a world

Hailey College of Commerce

Environment, Health and Safety (EH&S) Policy

Packages Limited shall:

Hailey College of Commerce

Nestle Milkpak Ltd (NML)

Nestle Milkpak Ltd (NML)

Hailey College of Commerce

Tetra Pak Pakistan Ltd.

Established in 1982, Tetra Pak Pakistan Limited is a joint venture between

Tri-pack Films Ltd.

Tri-Pack manufactures Bi-axially Oriented Polypropylene film (BOPP) with an

Established in 1994, a joint venture between Packages Limited (55%) and

Packages Lanka Pvt. Ltd.

Hailey College of Commerce

International General Insurance Company of Pakistan Ltd. (IGI)

Insurance business of Pakistan branch of Royal & SunAlliance Insurance Plc

IGl Investment Bank Ltd. (Interbank)

Established in 1990, IGI Investment Bank is licensed to carry out all

Coca-Cola Beverages Pakistan Ltd.

Packages Group is a minor shareholder in Coca-Cola

Hailey College of Commerce

PRESENT BUSINESS STATUS

Hailey College of Commerce

OBJECTIVES OF PACKAGES LIMITED

The objectives for which the company is established are:

Hailey College of Commerce

To manufacture, purchase, import, export, store, warehouse, process,

OUR CORE VALUES

Underlying everything we do and everything we believe in is a set of core

We are committed to running our business successfully and efficiently,

Hailey College of Commerce

The success of any organization is largely dependent on the people working

We ensure that every employee has the opportunity for maximum

We expect and encourage our employees to actively participate in community

Hailey College of Commerce

We are customer-driven; we go the extra mile to make sure our clients'

Hailey College of Commerce

Syed Babar Ali

Syed Hyder Ali - Chairman

Hailey College of Commerce

Shamim Ahmad Khan - Chairman

BUSINESS STRATEGY COMMITTEE

Syed Hyder Ali - Chairman

Syed Aslam Mehdi - Member

SYSTEM & TECH. COMMITTEE

Mujeeb Rashid - Chairman

Hailey College of Commerce