Sitara Chemicals Industries LTD

INTERNSHIP REPORT

NAME OF THE ORGANIZATION:

SITARA CHEMICAL INDUSTRIES LIMITED 32KM SHEIKHUPURA ROAD FAISALABAD.

SPECIALIZATION:

MARKETING.

SUBMITTED BY:

MUHAMMAD JAHANGIR ILYAS ROLL #2082

SUBMITTED TO:

Sitara Chemicals Industries LTD

ACKNOWLEDGEMENT
All praises belong to almighty ALLAH who is the supreme Authority Knowing the ultimate relations underlying all sorts of phenomenon going on in this universe and whose blessings and exaltation flourished my thoughts and thrived my ambitions to ave the cherished fruit of my humblest than!s to the H !" P# $%&' H()#(' M*%(++(, -P&(.& /& *$ 0 %1+2 who is forever a torch of guidance and !nowledge and !nowledge for humanity as a whole" I deem it my utmost pleasure to avail this opportunity to express gratitude and deep sense of obligation to my reverend teachers# for their valuable and dexterous guidance# scholarly criticism# untiring help# compassionate attitude# !ind behavior# moral support and enlightened supervision during the whole study and completion of the pro$ect" I am also gratitude to staff of Sitara Chemical Industries Ltd" %specially &r"I$a' ussain (D")"& Sectt*Acting )"& &ar!eting+ &r" Khalid ,ervai' Khan /+ who provides me useful

-ia'i (Sr" &anager Admin+# Tari. &ehmood (&anager

information during the internship program" I am than!ful to all those people# who provide me valuable information" 0inally# I should li!e to extend heartfelt than!s to my adoring ,A/%-TS# for their day and night prayers# sacrifices# encouragement# moral and financial support throughout the course of my study"

MUHAMMAD JAHANGIR ILYAS B.B.A -M(#3&'1042

Sitara Chemicals Industries LTD

3: LIST OF CONTENTS
LIST OF CONTENTS S*/5&.' 1" TITL% ,A)% 3" ACK-45L%D)%&%-T 6" LIST 40 C4-T%-TS 7" LIST 40 TA8L%S 9 ILL:ST/ATI4-#I0 A-; <" I-T/4D:CTI4=" 48>%CTI?%S 40 ST:D;I-) T % 4/)A-I@ATI4A" 4?%/?I%5 40 T % 4/)A-I@ATI4A"1 IST4/; A"3 -AT:/% 40 T % 4/)A-I@ATI4A"6 8:SI-%SS ?4L:&% A"7 ,/40IL% 40 %&,L4;%%S A"< ,/4D:CT LI-%S B" 4/)A-I@ATI4- AL ST/:CT:/% B"1 &AI- 400IC%S B"3 &A/K%TI-) 4,%/ATI4-S C" ST/:CT:/% 40 &A/K%TI-) D%,TT" C"1 -:&8%/ 40 %&,L4;%SS 54/KI-) I- T % &A/K%TI-) D%,A/T&%-T" C"3 &A/K%TI-) 4,%/ATI4-S 33 P(4& N . 21 23 26 2< 2= 2A 2B 2B 2C 2C 11 17 1= 1= 32 31 31

Sitara Chemicals Industries LTD

12" 0:-CTI4-S 40 &A/K%TI-) D%,TT" 12"1 &A/K%TI-) ST/AT%); 12"3 ,/4D:CT ,LA--I-)# D%?%L4,&%-T 9 &A-A)%&%-T 12"6 ,/ICI-) ST/AT%); 12"7 DIST/I8:TI4- ST/AT%); 12"< ,/4&4TI4-AL ST/AT%); 11 C/ITICAL A-AL;S%S 11"1 S:CC%SS 9 0AIL:/% 40 ,/4D:CTS 11"3 &A>4/ C4&,%TIT4/S 11"6 0:T:/% ,/4S,%CTS 40 T % 4/)" 13 S 4/TD0ALLS*5%AK-%SS%S 40 T % &A/K%TI-) D%,A/T&%-T 13"1 S54T A-AL;SIS 16 C4-CL:SI4- 9 /%C4&&%-DATI4-S 17 /%0%/%-C%S 9 S4:/C%S 1< A--%E:/%

37 3= 3=

3B 3C 62 63 6B 6B 72

73 73 76 7= 7A

Sitara Chemicals Industries LTD

L16' 7 '(/!&6 8 1!!*6'#('1 0

List of tables 9 illustration# 17 (0" 9. TA8L% 40 ,%/ T4- CA,ACIT; 40 CA:STIC S4DA 3" TA8L% 40 S A/% 4LDI-) 9 T %I/% ,%/C%-TA)% 6" &A/K%T S A/% 40 CA:STIC S4DA 7" ILL:ST/ATI4- 40 54/LD 5ID% CA:STIC S4DA C4-S:&,TI4<" ILL:ST/ATI4- 40 CA:STIC S4DA C4-S:&,TI4- I- ,AKISTA=" ILL:ST/ATI4- 40 S A/% 4LD%/ %F:IT;

Sitara Chemicals Industries LTD

I0'# ,*.'1 0
S1'(#( C%&+1.(! I0,*6'#1&6 L',. -SCIL2
SCIL is an industrial unit belongs to one of the largest )roup of Industries in ,a!istan GSitara )roup 4f Industries Ltd"H Sitara )roup of industries comprises of following business units"

S1'(#( G# *$ O7 I0,*6'#1&6 Sitara Chemical Industries Ltd" I Chemical Division Sitara Chemical Industries Ltd" J Textile Division Sitara Textile Limited Sitara %nergy Limited Sitara 0abrics Sitara Agri &odel 0arm Sitara ,er 4xide Sitara ,?C Ltd" Sitara Shopping &all G# *$6 C%(#1'(/!& I06'1'*'1 06 A'i' 0atimah Trust ospital )hafoor 8ashir Children ospital A'i' 0atimah )irls igh School Sitara Children ealth care 0oundation

Sitara Chemicals Industries LTD

O/5&.'1:&6 7 S'*,"104 '%& O#4(01)('1 0

To learn about the modern Information Technology S"A", (%/,+ is implemented in Sitar Chemical by the Abacus Consulting" Its main ob$ective of an %/, to provide instantaneous information on Sales# &ar!eting# &anufacturing# 4perations# Inventories and 0inancial etc" To learn about sales volume increased every year 12K from other competitors" To learn about Sitar Chemical daily average sales above 32 &illion" That is the efficiency of &ar!eting Department" To learn about ,?C ,ro$ect has been wor!ing that able to complete the demand on poor electricity supply conditions prevailing in the country" To Learn about Sitara Chemical Industries Limited which is wor!ing /iba 0ree" To Learn about Sitara Chemical Industries Limited who has the Largest Chlor Al!ali &anufacturing ,lant in the ,a!istan" To Learn about Sitara Chemical# which has# the fully automatic caustic soda plant based on latest membrane cell Technology absolutely mercury free initially production of Caustic soda is 62 &T*day gradually increased due to demand to current Level of <<2 &T*day" To learn about the .uality products of Sitara Chemical Industries Limited who has IS4 C221D3222 Certified 9 ,roducing the Fuality ,roduct" The following is the Fuality ,olicy of the Sitara Chemical Industries

Sitara Chemicals Industries LTD

SCIL ;UALITY POLICY -C;M<0092 GSCIL is Committed to remain alert 9 advance to continuously grow as a .uality symbol for its products 9 in meeting industrial 9 consumer re.uirements through training# teamwor! 9 procedures on time# every timeH To learn about the Sitara Chemical Industries Limited who is also IS4 17221 Certified 9 is the environment friendly 9 ,ollution free organi'ation" The following is the %nvironmental ,olicy of the of the Sitara Chemical Industries SCIL EN=IORMENTAL POLICY -E;P<0092 >SCIL is committed to continual improvement of its environmental management system (%&S+ by adoption of appropriate pollution prevention measures 9 complying with all relevant environmental legislations*regulations through training# teamwor! 9 procedures as implemented from time to timeH To Learn about the organi'ation who has the deep /egard of the vendors Customers# 8usiness ,artners 9 %mployee

?: O=ER=IEW OF THE ORGANIZATION

?.9 B#1&7 H16' #" Sitara Chemical Industries Ltd" 5as incorporated in 1CB1 as a public limited

company and started its commercial production in 1CB7# under the 'ealous administration of two brothers# a$i Abdul )hafoor (late+ and a$i 8ashir Ahmad"

-ow &r" &uhammad Adrees is the Chief %xecutive of SCIL" The factory is situated at 63!m Shei!hupura /oad 0aisalabad" SCIL incorporated under the companiesL ordinance 1CB7 and listed in1CBA Initially SCIL was incorporated for Chloral Al!ali ,roduction# however it under gone merger with )afoor 8asheer Taxtile" SCIL has made growth by leaps and bounds and

Sitara Chemicals Industries LTD

become largest Caustic Soda producer in ,a!istan" At present SCIL has a mar!et share of A2K in Caustic Soda industry" ?.2N('*#& 7 '%& O#4(01)('1 0 Core business of the company is manufacturing of Caustic Soda and some byD products at Chemical Division" Textile Division consist of one spinning units of 7<#72B spindles where cotton yarn if produced" The Company mainly supplies industrial chemicals to various industries# which gives the company a very wide consumer base diversification over many industrial segments" The location of the plant is also strategic as some of the ma$or consumers belonging to textile# soap# paper and vegetable oil industries are situated in the surrounding area" ?.3 B*610&66 = !*+& Sitara Chemical Industries Ltd" is the largest producer of ChlorDAl!ali products in ,a!istan" The total amount of turnover in 3213 was /s"="22 8illion Caustic soda industry in ,a!istan comprised of only three produces mentioned below" 0orecasting a persistent increase in demand management is trying to increase production capacity of plant" The estimated mar!et situations of last five years are as follows" J*0& 2092 P# ,*.&# C($(.1'" T 06 @ A4& <B" 316#<A< 17<#A<2 61#222 6C2#63< 36 6<" B1 <" -imar Chemical Total C= 122 "22

Sitara Chemical Ind" Ltd Ithad Chemical Ltd"

Sitara Chemicals Industries LTD

Sitar chemical Industries Ltd Itehad Chemical Ltd Nimir Chemical

M(#3&' S%(#& 7 C(*6'1. S ,( I0,*6'#" 10 P(316'(0

J*0& 2099 P# ,*.&# C($(.1' " T 06 1AC#B<2 13<#722 3=#722 661#=<2 @ A4& <7" 36 6A" B1 A" -imar Chemical Total C= 122" 22

Sitara Chemical Ind" Ltd Ithad Chemical Ltd"

Sitar chemical Industries Ltd Itehad Chemical Ltd Nimir Chemical

M(#3&' S%(#& 7 C(*6'1. S ,( I0,*6'#" 10 P(316'(0 J*0& 2090

Sitara Chemicals Industries LTD P# ,*.&# C($(.1' " T 06 Chemical 1B2#362 11B"3=C 61#<22 63C#CCC A= 6=" Ithad Chemical Ltd" -imar Chemical Total =7 B" <2 122 "22 @ A4& <7"

Sitara Ind" Ltd

Sitar chemical Industries Ltd Itehad Chemical Ltd Nimir Chemical

M(#3&' S%(#& 7 C(*6'1. S ,( I0,*6'#" 10 P(316'(0 J*0& 200A P# ,*.&# C($(.1' " T 06 Chemical 17<#226 162#<BB A<#2CC 6<2=C2 1< 6B" Ithad Chemical Ltd" -imar Chemical Total <3 1 2"66 122 "22 @ A4& <1"

Sitara Ind" Ltd

Sitar chemical Industries Ltd Itehad Chemical Ltd Nimir Chemical

M(#3&' S%(#& 7 C(*6'1. S ,( I0,*6'#" 10 P(316'(0

Sitara Chemicals Industries LTD

J*0& 2008

P# ,*.&#

C($(.1' " T 06 1=<#=<C 162#A22 1B#722 617#A<C

@ A4& <3" 67 71" 6= =" 62 122 "22

Sitara Chemical Ind" Ltd Ithad Chemical Ltd" -imar Chemical Total

Sitar chemical Industries Ltd Itehad Chemical Ltd Nimir Chemical

M(#3&' S%(#& 7 C(*6'1. S ,( I0,*6'#" 10 P(316'(0 ?.B P# 71!& O7 E+$! "&&6 0or the year ended >une 62# 3213# total number of permanent employees were 1#1B7 where as number of contract employees were A1<" Company has maintained recogni'ed provident fund# based on audited accounts as at >une 62# 3213# value of

Sitara Chemicals Industries LTD investment thereof was /s# 62#72B#A2<3" 5hereas employees of Textile Division are entitled to gratuity" Company has its charter of ethics and business practices which is signed by all the employees" C(#&&# P!(00104 The company provides attractive salary pac!ages as well as good career progressions to its employees" Special attention is given to Succession plans to fill up gaps re.uired at the time of need" The employees are made aware of their career progressionLs profile right at the time of induction"

T#(10104 N&&, A66&66+&0'6 The company understands the importance of training and is totally committed to the training aspects to enhance the s!ills and capabilities of its employees" A fully e.uipped /D center has been established at SCIL to conduct regular inDhouse

courses and training sessions" Sometime SCIL .ualified staff conducts these sessions and at times experts from outside Institutions are invited to impart training to employees of various trades" &ostly there training is arranged in ,I&S# S%&%DA and employers 0ederations of ,a!istan# etc for external courses in their related field" H1#104 O7 T#(10&& E0410&&#6 A0, M(0(4&+&0' T#(10&&6 Sitara Industries plays an important roll in the professional growth of the fresh %ngineers and &8As* &aster Degree olders" SCIL induct them as &anagement

Trainees for a period of one year and during the training period offer them reasonable

Sitara Chemicals Industries LTD stipend" 4n successful completion of training period# company offers them >obs with handsome Salary pac!age" P# 71!& 7 E+10&0' EC&.*'1:&6 MR. SHER ALI MALIK has $oined Sitara Chemical Industries Limited on >uly 3<# 322B as &anager &ar!eting" ,un$ab Lahore" e is holding a degree of &,A from :niversity of

e brings with him 1< years of experience in Sales 4perational e

&anagement and 8rand &anagement of 0ast &oving Consumer )oods (0&C)+"

has prior wor!ed with well !nown processing as well as manufacturing companies li!e abib 4il &ills (pvt+ Ltd" :nited Industries Limited and Iffco ,a!istan (pvt+ Ltd"# 0ormerly %vian 0ats and 4ils"

MR.LIA;AT ALI SHAHID has $oined Sitar Chemical Industries Ltd" As )eneral &anager Commercial on August 21# 322B" Did his 8"Sc" &echanical %ngineering from :niversity of %ngineering 9 Technology Lahore in the year 1CAB" e has about

62 years of experience in wellD!nown companies li!e Crescent Sugar# ,a!istan Tobacco# /afhan &ai'e 9 Syed 8hais" is past experience is related to ,lant

&aintenance# ,reventive &aintenance# 4perations# &aterial ,lanning# Inventory Control# ,urchasing (Local 9 Imports+ and ?endors development" e has also

attended various short courses li!e improving steam boiler efficiency 9 steam distribution system# waste heat recovery# 4perations &anagement and basic courses for IS4DC221" MR. TARI; MEHMOOD is a valuable addition to highly professional# committed and motivated team of Sitara Chemical Industries Ltd" .ualification of AIC& (Chartered &anager+" e has professional

e brings with him diversified

Sitara Chemicals Industries LTD experience of uman /esources &anagement spread over 16years in different

capacities*organi'ations" e has attended number of conferences and courses" MR. SHAKEEL REHMAT MALIK has $oined as &anager Administration in SitaraD0amily with effect from 11th April 322B" &r" &ali! has done his &asters in 4rganic Chemistry and bachelor degree in law from :niversity of the ,un$ab" e has

also done ,ost )raduate Diplomas Labor# Taxation laws and International Affairs" &r" &ali! is also e.uipped with 1<years of rich managerial and professional experience in the fields of Legal# corporate# Industrial /elations and Administration during which he has not only served in private but also in public sector" e has

privileged to serve in large industrial groups li!e ,ac!ages# Crescent# Cha!wal and abib )roup"

?.D P# ,*.' L10&6 0ollowing SCILLs main products along with production capacity C%&+1.(! D1:161 0 P# ,*.' N(+& Caustic Soda Sodium ypochlorite 8leaching ,owder Ammonium Chlorite ydrochloric Acid T&C'1!& D1:161 0 K46 I0 20<S104!& Cotton ;arn C(*6'1. S ,( *'1!1)('1 0 It is used in textile processing as merceri'ing agent 9 fixing agent# -eutrali'ing agent in petroleum refining# pulp and paper# detergents# vegetableDoil refining# soap industry 32#AC1#AA= D&6140&, C($(.1'" -T 06 P&# Y&(#+ 163#222 6=#222 A#<22 6#222 112#222

Sitara Chemicals Industries LTD as a sponifying agent# ion exchange resins regeneration# chemical manufacture of rayon and cellophane etc" 5orldwide caustic soda apparent consumption by end use 3213 (K+

C(*6'1. . 06*+$'1 0 10 P(316'(0 E 6&.' # F16&

S ,1*+ H"$ .%! #1'& *'1!1)('1 0 :sed in textile# carpet industry# sodium silicate manufacturing# sugar industry# disinfection for potable water and cooling tower# rayon and other chemicals

Sitara Chemicals Industries LTD B!&(.%104 P F,&# *'1!1)('1 0 :sed in textile Industries# carpet Industries# water purification# pulp# paper and paper board# sugar etc" A++ 01*+ C%! #1'& U'1!1)('1 0 :sed dry battery cell# galvani'ing pipe# sheet and other material# pharmaceuticals metal cleaning# soldering# tanning etc" H",# .%! #1. A.1, U'1!1)('1 0 Textiles# water treatment# production of li.uid sugar# steel pic!ling 9 galvani'ing industries# ,roduction of gelatins from bones# activated clay etc" C '' 0 Y(#0 *'1!1)('1 0 :sed in weaving of gray cloth"

8: ORGANIZATIONAL STRUCTURE
8.9 M(10 O771.&6 D&$(#'+&0' Accounts Department F*0.'1 0 To prepare monthly# .uarterly and annually Accounts# Costing# 8udgeting 9 0orecasting" To handle payable 0inance Department Internal Audit Department Commercial Department Information Technology Department Administration Department uman /esource Department ealth Safety %nvironment ( S%+ and insurance# L"Cs# Inventory 9 Stores etc Arranging 0inance and negotiate over coat of finance# To handle sale# receivable# debtor aging# cash and ban! etc To monitor the implementation of internal procedures# policies internal control systems and repot any violation" Detection and control of financial ris! and frauds" To handle local 9 Import procurements" Development 9 launch the new system (SA,+# -etwor!ing# ardware &aintenance" Dealing sta!e holders in general issues# transport# care ta!ing# weighbridge# security# recovery# horticulture# iring new manpower# satisfaction# &otivation# Appraisals etc IS4 Audit and IS4 implementation# Internal safety 9 environmental awareness and health improvement"

Sitara Chemicals Industries LTD C%4 Secretariat ,roduction Department %lectrical 9 Instrument To assist Chief %xecutive 4fficer in performing his daily functions" To underta!e production activity and maintain desired production volume &aintain and economies electricity consumption#

Installation and maintenance of %lectrical 9 %lectronics &echanical Department Civil Department Instruments Installation and maintenance of plant and machinery" :nderta!e civil wor!s activity either in maintenance or new pro$ects

/esearch 9 Development (/9D+ Fuality Control ,ro$ect Department Agri Division

,roduct

development#

product

improvement

and

economies production cost by discovering raw material substitute or change in production process" &aintain .uality and deal with complaints To design and build structural design of new plant to be installed" 8asic purpose was to go for diversification by innovative Agri products development" This division engaged in /9D# &ar!eting# and production of Agri fertili'ers" To increase existing demand# to wor! as organi'ationLs intelligence in large outer environment# customer satisfaction# advertisement# smooth dispatch# rationing of products in case of excess demand

&ar!eting 9 Sale Department

Sitara Chemicals Industries LTD

O#4(01)('1 0(! H1&#(#.%"

CHIEF EXECUTIVE

EXECUTIVE DIRECTOR

DIRECTOR TECHNICAL &!RO$ECT

HR & ADMIN DE!TT

"ENERAL MANA"ER #INANCE

IS4 D%,TT"

)"&" 5or!s

C4&&%/ CIAL D%,TT

I&,4/T D%,TT"

0I-A-C% 9 ACC D%,TT

IT D%,TT

ST4/% D%,TT

&A/K%TI-) 9 %E,4/T D%,TT

A"RI DIVISION

/9D D%,TT"

L 9 FC D%,TT

,/4>%CT D%,TT

D)& %-)-%%/I-)

!ROCESS DE!TT

Sitara Chemicals Industries LTD

D&$(#'+&0'(! H1&#(#.%"
CHIE# EXECUTIVE O##ICER CHIE# EXECUTIVE O##ICER

84A/D 40 DI/%CT4/S 84A/D 40 DI/%CT4/S

AD&I-I-ST/ATI4AD&I-I-ST/ATI4-

&A/K%TI-) &A/K%TI-)

,/4C%SS ,/4C%SS

C%4 S%C/%TA/IAT C%4 S%C/%TA/IAT

A)/I &A/K%TI-) A)/I &A/K%TI-)

,/4D:CTI4,/4D:CTI4-

AD&IAD&I-

S,%CIALT; &A/K%TI-) S,%CIALT; &A/K%TI-)

&%C A-ICAL A-ICAL &%C

:&A/%S4:/C%S :&A/%S4:/C%S

SAL%S SAL%S

%L%CT/ICAL*I-ST/:&%-T %L%CT/ICAL*I-ST/:&%-T

ACC4:-TS * ST4/% ACC4:-TS * ST4/%

&AT%/IAL &A-A)%&%-T &AT%/IAL &A-A)%&%-T

A:DIT A:DIT

/%S%A/C 9 9 D%?%L4,&%-T /%S%A/C D%?%L4,&%-T

0I-A-C% 0I-A-C%

%ALT SA0%T; SA0%T; 9 %ALT 9 %-?I/4&%-T %-?I/4&%-T

I-04/&ATI4I-04/&ATI4T%C -4L4L); -4L4L); T%C C4&&%/CIAL*I&,4/T C4&&%/CIAL*I&,4/T

S%(#& H !,104 N('*#& O7 S%(#& H !,&# N . O7 S%(#& H&!, @ A4&

Directors# C%4 9 their Spouse and

11#C7A#=<= =7"72

Sitara Chemicals Industries LTD 6#172#26 A 6#16<#C7 6 63C#C= 6 1B#<<6#<CC 1=" C3 1=" C2 1" AB 122" 22

0inancial Institutions Individuals >oint Stoc! Companies# 4thers# etc"

Although SCIL is a public limited company listed in stoc! exchange# however sponsors of the company are holding =7 K of e.uity" ?ertical organi'ation structure further strengthens influence of directors * sponsors in management" 1AK individual shareholders# 1AK 0inancial Institutions and 3K >oint Stoc! Companies are at the mercy of sponsors who of =7 K holdings 8.2 M(#3&'104 O$&#('1 06 The internship period provided me an opportunity to get first hand !nowledge about the operations of the mar!eting department of SCIL" The &ar!eting department performs all necessary functions that generate the mar!eting process" There is an upD toDdate system to record in.uires and orders that are received through telex# fax# %mails# letters and personal visit" These are viewed and discussed" 4n the basis of the feasibility report# the &ar!eting &anager gives the approval" The operations of the mar!eting department are as toMD Study and analy'e the trend of the mar!et" 5atch and analy'e competitorLs strategy of mar!eting" Analy'e the customer demand" Analy'e the product development process" Analy'e the .uality assurance procedure"

Sitara Chemicals Industries LTD Increased the mar!et share as compared to competitors" Introduce new product in the mar!et after research and development process" 0ocus on the local mar!et as well as international mar!et"

A: STRUCTURE OF MARKETING DEPARTMENT

A.9 N 7 E+$! "&&6 F #3104 10 '%& M(#3&'104 D&$(#'+&0' &ar!eting Department consists of 32 employees and headed by D)& Sectt*Acting )"& &ar!eting" 4rgani'ation structure of this department is as
Dy" )eneral &anager Sectt*&ar!eting 9 /

&anager &ar!eting

&anager Dispatch

Sr Deputy &anager &ar!eting

Sr Deputy &anager Dispatch

Deputy &anager &ar!eting

Deputy &anager Dispatch

Sr Assistant &anager

Sr Assistant &anager Dispatch

Assistant &anager &ar!eting

Assistant &anager Dispatch

Seniors &ar!eting 4fficers

Sr Dispatch 4fficer

&ar!eting 4fficers

Dispatch officer

Assistant &ar!eting 4fficers

Assistant Dispatch officer

7 x Trainee officer

There are total 32 employees in &ar!eting Department" This strength is stagnant since many years" The activity * transaction volume is increasing day by day with enhancement in production capacityN however sanction strength has not been revised

Sitara Chemicals Industries LTD accordingly" That is why Accounts and 0inance department is facing a lot of stress and tension rustling in $ob dissatisfaction and high turn over" There is an immediate need to revise sanction strength

A.2 M(#3&'104 O$&#('1 06 The mar!eting department performs six main operations" M(#3&' R&6&(#.% At SCIL the mar!eting department ma!es a thorough research of the mar!et situation and the trends of the buyers before launching a new product" This step enables the mar!eting to ma!e the right decision" The mar!eting personnel of SCIL regularly monitor the mar!et re.uirements# conduct research about the trends in the mar!etN then they arrive at a final decision regarding the introduction of a new product" The mar!eting manager plays a vital role to this effect" E0:1# 0+&0'(! A0(!"616 To ac.uire a leading role as the producer of .uality caustic products# SCILLs mar!eting departments constantly observe the political# social and economic environment at home and abroad" Technical advancements are also studied and analy'ed" P# ,*.' D&:&! $+&0' The better .uality of SCILLs products is the result of improved research methods# use of standard material and e.uipment for the product development" The products of SCIL are# therefore# accepted in both national and international mar!ets right from Lahore and Karachi to 8ra'il and Australia" M(#3&' A0(!"616

Sitara Chemicals Industries LTD The mar!et of SCIL is based on S54T criteria" In this process the organi'ation identifies and evaluates its strengths# wea!ness# opportunities and threats" The organi'ation capitali'es on its mar!eting strengths and gets an advantage of the most

promising opportunities "It is vigilant about its wea!ness" ,rompt and necessary actions are ta!en to eliminate threats" M(#3&'104 M1C The Sitara Chemical Industries are pursing a successful mar!eting mix Strategy" They focus on the mar!eting of variegated products i"e" Caustic soda# ydrochloric acid#

Chlorine" This strategy has always helped the organi'ation to achieve its business goals" F&&,/(.3 SCIL rely on feedbac! to determine their actual position in the mar!et" The feedbac! provides base for the future plans" The feedbac!# therefore is given reasons consideration by the C%4 and departmental managers" The mar!eting personnel of SCIL survey the mar!et# conduct research and ma!e suggestions regarding product development# pac!ing 9 printing etc

Sitara Chemicals Industries LTD

90: FUNCTIONS OF THE MARKETING DEPARTMENT

&ar!eting is a process of creating customer value in the form of goods 9 services # ideas that can improve the life of customer" It is the delivery of customer satisfaction at a profit" &ar!eting can also be defined as process of planning 9 executing the conception # pricing# promotion# 9 distribution of ideas# goods 9 services to create exchanges that satisfy individual 9 organi'ational ob$ectives#H Today successful companies whether large or small# for profit or nonD profit# domestic or global# have one common factor of sharing a strong customer focus 9 heavy Commitment to mar!eting" &any people thin! and ta!e mar!eting as only selling 9 advertising# but the concept combine many activities i"e" mar!eting research# product development# distribution# pricing# advertising# personal selling 9 others DDDDD designed to sense# serve and satisfy customer Os needs# while meeting the organi'ationLs goals" Thus mar!eting see!s to attract new customers by promising superior value 9 to !eep current customer by delivering satisfaction" &ar!eting operate within a dynamic global environment# as rapid changes can .uic!ly ma!e yesterdayLs winning strategies &ar!eting department of SCIL is lead by &r"&uhammad I$a' (D)& Sectt*)"& &ar!eting+ and headed by &r")hulam Abbas (&anager &ar!eting )ases+# &r :baid Athar Khan (D)& &ar!eting (South+ dispatch section is controlled 9 monitor by &r amid -aeem (Sr"Dy"&anager Dispatch 9 coDordination+ while specialty chemical

Sitara Chemicals Industries LTD division is head &r" Asad /athore (&anager Specialty Chemical+9 export section is lead by &r"Amir (Dy" &anager %xport+

SCIL &ar!eting ,olicy aims at bringing about both .ualitative 9 .uantitative improvement in all the prevailing function# related directly to the customer benefit 9 satisfaction" &ar!eting Department is basically consist of two sections" 1M &ar!eting section responsible for customer dealing 9 order ta!ing" 3MDispatch section responsible for the execution 9 dispatch of orders SCIL has following six 'onal offices in the north 9 south 'ones# N #'% Z 0& 0aisalabad 'one headed by &r Asad /athore (& & Specialty Chem 9 && 0SD+ Lahore 'one headed by &r &ehmood A'am 8utt (D)& &ar!eting+ )u$ranwala 'one headed by &r Sher Ali &ali! (&anager &ar!eting+ Islamabad 'one headed by &r Laee. ;ousaf ( Sr Assistant &anager &ar!eting+ &ultan 'one headed by &r -adeem abbas(Dy" &anager &ar!eting+ S *'% Z 0& Karachi 'one headed by &r :baid A Khan ()"& &ar!eting+ through out ,a!istan SCIL is the leader in caustic soda# chlorine gas and bi product sales through the 'onal offices" @onal offices contribute a lot in generating the revenue# according to the annual accounts 322B# sources of revenue for SCIL are as follows R6.-M1!!1 02 2099 C(*6'1. S ,( S ,1*+ H"$ .%! #1'& B!&(.%104 $ F,&# H",# .%! #1. (.1, 2G9G 228 ?2 9B2 R6.-M1!!1 022092 2G9A 2?A ?2 99A

Sitara Chemicals Industries LTD O'%&#6 T '(! 90.9 M(#3&'104 S'#('&4" &any International mar!ets are now extremely competitive due to the globali'ation of the world trade and investment environment" In industry after industry# capable competitors confront each other around the globe" To be profitable in such an environment# a firm must ma!e a clear and viable strategic choice with regard to its position on the efficiency frontier# and action at the operational and strategic level that support this position" That is why mar!eting strategy of the SCIL is to satisfy customer through its goods 9 services in line with the feed bac! from customer 9 timely shipment" The export department is handling the international mar!et in a very proper and appropriate manner" The export department consists of competent and s!illed team of professionals" Ta!ing into consideration that the 62 K of total production of Sitara chemical is exported through out the world# the export department tries its best to generate valuable customers through out the world" 90.2 P# ,*.' $!(00104H ,&:&! $+&0' 8 M(0(4&+&0' 9?8 323G 233 3322

At SCIL strategies are adopted for managing the existing chemical products adding new ones and discarding out dated soda and patterns" In the executive meeting strategies are made regarding# pac!ing and other mar!eting incentives# compensation of loss and replacement of damaged goods" At the initial stage of planning the mar!eting# processing and production manager meet together in a meeting presided over by the C%4 the design# the .uality and texture of the product are discussed in detail" The processing and production manager have to confirm that the product can be easily prepared in the SCIL" The C%4 gives the final approval"

Sitara Chemicals Industries LTD

P# ,*.' ,&:&! $+&0' P# .&66 The standard .uality products of SCIL are popular both at home and abroad the products are prepared according to the customer re.uirements" Li!e other established organi'ations SCIL based the development of their products on the following stepsM (. G&0&#('104 P# ,*.' 1,&(6 8y studying the mar!et demands information is gathered public trends feed bac! is collected from the current customer and the prospective customers" Also the products of other organi'ations are analy'ed including their position in the mar!et" /. S.#&&0104 '%& I,&(6 ,roduct ideas are evaluated to determine which ones warrant future prospects" .. B*610&66 A0(!"616 A dynamic idea is expended in twoDway concrete business proposal" the function of efficient" The business analysis enables the management to achieve the following ob$ectivesM D 1" 3" 6" Identify the product features as per re.uirements" Assess mar!et demands# competition and profitability" To ma!e the final plans to development of the product" ere starts

,. T#(1! M ,&! Considering that the business analysis is favorable# the management approves the products for the development" Suggestions from the finance department regarding the cost of production are given due importance" It is assessed whether cost wise

Sitara Chemicals Industries LTD

the product is feasible or not" The production prepares a trail model of the product" This strategy is considered positive for the product development" &. C ++&#.1(!1)('1 0 The organi'ation determines on full scale if it is successful I the mar!et example of SCIL product planning and development is caustic soda# Sodiumhypochlorite# 8leaching ,owder# ydrochloric Acid" Theses two products attract the customer

on large scale" The buyersL response and periodical mar!et reports tell the administration what changes to bring about in .uality" 90.3 P#1.104 S'#('&4"

5hen the D)& confirms that the re.uired material can be easily prepared in SCIL# and then he replies to the buyer Gwe are in a position to ma!e your orderH" The D)& ta!es from the procurement department" The D)& calculates the prices then the )& chec!s and signs the costing" &ost of the customers send their own designs in the form of Artwor! and fabric samples in case of printing of the design of the customers" 4n instructions of D%&# the %& as!s the sampling department and also coordinates for the sampling re.uirement and its dispatch# if the customer for .uality purpose re.uires it" If the price .uotation is wor!able for the customer then he places order with terms and conditions mutually agreed" Sometimes if prices are not wor!able for the customer# he offers his target price" Then the D%& and %& recalculate this price and if it is wor!able for SCIL then D%& proceeds to as! the customer for order placing otherwise does not proceed"

Sitara Chemicals Industries LTD

There are three pricing strategies being used in SCIL# 90.2.9 C +$&'1'1:& /(6& $#1.& ,rice prevailing in competitive international mar!et 90.2.2 C*6' +&# /(6& $#1.& &utually negotiated price between customer 9 SCIL 90.2.3 P# ,*.' /(6& $#1.& ,roduct price as per customer specification 90.B D16'#1/*'1 0 S'#('&4" There are two ways of distribution adopted in SCIL# 1 3 Direct channel Indirect channel

90.B.9 D1#&.' .%(00&! SCIL &ostly SCIL deal and distribute their goods direct to customers" They have two 'ones for different sectors# 'one 1 deals with 0aisalabad# )u$ranwala # Islamabad # &ultan" Similarly 'one 3 deals with Karachi" CUSTOMERS @one 1M @one 3M 0aisalabad # )u$ranwala # Islamabad # &ultan Karachi"

90.B.2 I0,1#&.' .%(00&! AGENTS I MIDDLE MEN

Sitara Chemicals Industries LTD SCIL also deal and distribute their goods through agents*buying ouses to avoid heavy losses in foreign countries because of un!nown mar!et situations in the beginnings of its business and investing huge amounts in that particular country"

@one 1M 0aisalabad# )u$ranwala # Islamabad # &ultan @one 3M Karachi" Channel of Distribution ,roducer

Sitara Chemical Industries Ltd 0aisalabad

5holesaler

There is no wholesaler 9 /etailer to sale the products" SCIL deal and distribute their goods direct to customers" SCIL direct to sales product to end user e"g Textile

/etailer

Industries# sugar# soap# water treatment# pharmaceuticals# )hee# paper etc"

8uyer E0, U6&# 90.D P# + '1 0(! S'#('&4" SCIL use all available means to promote products and communicate information they ma!e effective use of strategies li!e Advertising# Sales promotion# Trade promotion# ,/ etc" to thrive in the international and local mar!ets T%& R !& 7 A,:&#'16104 As a tool of mar!eting# advertising is the structured and composed non J personal communication of information "It is persuasive about products services or ideas" SCILLs advertising ma!es the buyer aware of the products and communicates the information about the products floated in the mar!et" 4n a broader scale their

Sitara Chemicals Industries LTD advertising engorges the development of new products and speeds their acceptance" It fosters employment# gives consumer and businesses and wide variety of product choices"

T%& R !& 7 P*/!1. R&!('1 06 In this world of growing economies and tough competition# corporations reali'ed that the direct personal contact and relationship with consumer is the prime opportunity to build and maintain relationships that result in future sales" Also it is way to create mutual goodwill" The ,rimary /ole of ,ublic relation is to manage the organi'ationOs reputation and help build public consent for its enterprises" In todayLs complete environment public consent can no longer be assumed "At SCIL this aspect is given due attention "The C%4 is always willing to meet visitors# pay visit and !now the public consent" There is team of efficient managers who explore every avenue" They plan execute the public relations programmes" They constantly monitor and analy'e changes of attitudes in variety of publics" They visit shopping centers conduct interview analy'e incoming mails and field reports "The organi'ation uses ,/ to manage relationships with vendors# the employeeLs customers# stoc! holders competitors and the public in general" T%& R !& 7 S(!&6 P# + '1 0 Sales promotion is a direct inducement that offers extra incentives with the ob$ective to enhance or accelerate the productLs moment from the producer to the consumer" Sitara Chemical Industries Ltd believes in direct inducement" So their pri'es# extra products# gifts or speciali'ed information are offered to the consumers" The consumers are invited to visit a store# as! for literature# personally examine displayed product or ta!es some other action" These incentives add tangible immediate and extra

Sitara Chemicals Industries LTD value to the brand "To become a mar!et leader a brand needs both advertising and sales promotion" SCILLs sales promotion is creative and hard to imitate"

T%& R !& 7 T#(,& P# + '1 0 To move their products from the distribution outlets to the point of consumption# mar!eters employ two types of strategiesM push strategy and pull strategy" ,ush strategies are offensive tactics that are designed to attract customers and increase the demand for the products" The push strategies are defensive tactics designed to secure the cooperation of the retailers# gain some space and protect against the competitors" Sitara chemical Industries Ltd uses this channel to push the product ahead and gain selfDspace" The C%4 never any opportunity to introduce SitaraLs chemical products in the great global exhibitions from China to )ermany" Sitara chemical Industries Ltd is on the top of the list of the &inistry of Trade and Commerce to introduce themselves in the international mar!ets through the trade promotion exhibitions and programmes "

Sitara Chemicals Industries LTD

FI=E YEARS BALANCE SHEET

2092 R*$&&6 ASS%TS -4- J C://%-T ASS%TS ,roperty# plant and e.uipment Investment property LongDterm investments LongDterm loans and advances LongDterm deposits C://%-T ASS%TS Stores# spare parts and loose tools Stoc!DinDtrade Trade debts Loans and advances Trade deposits and shortDterm prepayments 4ther receivables Investment Sale tax refundable 4ther financial assets Cash and ban! balances <16A=1C2B3 3A2<B27C22 AA26<CCC 12=<A=CC 6BC=<7<2 3=<<A<C1= AA6A=1<33 ==6C31133 <=<<==2A 337C3<<A 1317AB2B 7B372AC73< 13<<B71==1 BB2B1BC3 <73C2=632 6BC=<7<2 666<6<<31 <3=C1<AC< <=6ABB1CB 17B12C6A7 BB1B=C2 B61A=13 7#32<#B=<#B1 6 17#67<#AA3 A<#6C<#<AC <31#672 6B#C=2#2<2 32B#232#261 771#=A=#6=3 <=1#2B=#C1C <=2#A=1#B17 =#2=6#CCB 11#AAC#<<2 A#6CC#37B 3A72C<=66B A16AB=1<3 11326C63 A=16CA 326=62<2 312127B=7 72A27337A 6<62<233 7C<AAC32< <233627 A376=B< 71B27A< 1A3CB2A<3A A13BB2AC7 1<72<72A 1166<1< 327<=1CC 1B372=6=B 61C17<=CC 37A2AB3<< 622=ACCAC 6CB<3AC 763<=C6 3616B17 1173B6A 2099 R*$&&6 2090 R*$&&6 200A R*$&&6 2008 R*$&&6

<7A2B23= 3C71=7<6A

B73<<12 372C73A6A

3<3#=C7#<3=

90993B9922D

8D88?2898D

GH38BHD?9H00 2

9H8?2HGD0H98 D

9H203H0A8HD3 G

2092 R*$&&6

2099 R*$&&6

2090 R*$&&6

200A R*$&&6

2008 R*$&&6

Sitara Chemicals Industries LTD

%F:IT; A-D LIA8ILITI%S S A/% CA,ITAL A-D /%S%/?%S Authori'ed AP class ordinary shares of /s" 12 each 8P class ordinary shares of /s" 12 each Issued# subscribed and paid up /eserves Capital reserves /evenue reserves Ta!aful reserve :nappropriated profits

722#222#222 322#222#222 327#2BC#<C2 1#611#A=C#C23

722#222#222 322#222#222 327#2BC#<C2 1#633#22A#<7<

622#222#222

622#222#222

622#222#222

1B<#<6<#CC2 1#A6=#=B1#621

1B<#<6<#CC2 122#3C7#1C< 1#633#2=1#BB3 <2#222#222

1B<#<6<#CC2 CB#=26#677 1#16C#272#71 7 <2#222#222 9HB?3H9?AH?B 8

1#77=#13C#7C<

BCC#C61#C1= 2HB2GH02AH0D9 1#2A<#6<A#A<A 1#ACA#=A6#1A= 13#C73#BA7 C<A#=AC#667 1#BAB#7B6#<=A 6A#73<#C6= 1#B7=#<1<#2=1 13#A2=#126 3C=#6C3#AC< 1=#13<#<76 71=#22<#21C 16#C=1#<A7 9HGD?H8A2H0G?

2HAG9HA88HA8? S:/,L:S 4- /%?AL:ATI4- 40 ,/4,%/T;# ,LA-T A-D %F:I,&%-T 1#22=#<7B#23= -4-DC://%-T LIA8ILITI%S LongDterm financing 3#AB<#A<1#CB6 LongDterm deposits 13#61<#A3C Deferred liabilities 1#226#<C<#AC2 C://%-T LIA8ILITI%S Trade and other payables 1#AA2#B72#CCA ,rofit * financial charges payable 12=#==6#61B Short term financing Current portion of nonDcurrent liabilities Current portion ofM long term financing 71<#2C1#3=A long term murabaha D Term 0inance Certificates (T0Cs+ Cotnribution to ta!aful reserve by T0C holders Islamic Su!u! Certificates Liability against asset sub$ect to finance lease (I$ara+ DEFERRED LIABILITIES Deferred taxation Deferred taxation Taxation D income tax D net of advance tax D sales tax

1#71A#=17#B2= <A#=3B#<A=

<73#==6#327 67#<=3#A7B ===#BC2#<<B 363#<B1#723

<BB#===#<62 76#B72#311 6<#C<=#<=< 1B7#63B#26A

333#=3A#=76 37B#B71#BB6 1C#76B#27A

1C#76B#27A D

<B#617#161 B#BA6#B37 1#122#222#222 D 6<<#16C#72C <#2BA#<72

CA#1C2#31< 133#722#222 16#=<A#=<A D 17#6<6#=CC 3=7#776#<32 6#C1B#=BA 662#B=C#1<1 D 9H203H0A8HD3 G

7=#B7B#==3 6#A==#7== 3#676#312#A12 90H993HB99H22 D

11=#C1<#A=2 1A#C72#B22 3#61C#27<#CC6

6=B#=6B#7<= 3=#3C1#BC6

661#B=3#B3C 3<#316#6=2

8HD88H?28H98D

GH38BHD?9H002

9H8?2HGD0H98D

PROFIT AND LOSS ACCOUNT

Sitara Chemicals Industries LTD

2092 R*$&&6 =#1AB#6CC#26 SalesDnet Cost of sales )ross profit 4ther operating income 6 7#31=#=76#== 3 1#C=1#A<<#6A 1 3A#71C#=BB 1#CBC#1A<#2< C =B#3C3#121 372#6=1#BBA AB#C22#C17 =27#CB1#1C= B#A77#B3< 1#221#3B2#C3 6 CBA#BC7#16= 6<A#76C#2C< 2099 R*$&&6 <#7AC#<A2#2=C 6#C37#3B<#AC2 1#<<<#3B7#3AC =7#<<A#666 1#=1C#B71#=13 A1#<7C#767 1=B#A3B#=A< C2#736#37A 6=B#2C7#=7< 1#A7<#771 A22#<71#773 C1C#622#1A2 3C=#C<7#B21 2090 R*$&&6 7#6A7#2<1#BB1 (6#3BC#=A3#1<B+ 1#2B7#6AC#A36 3C#=1A#=27 1#116#CCA#63A (<7#B17#<BB+ (1=7#B26#26=+ (6C#BC6#<<A+ (61A#=37#6A6+ <7#163 200A R*$&&6 6#B11#BC2#276 6#12=#AA3#7B2 A2<#11A#<=6 C#7BB#2CB A17#=2<#==1 (<7#<33#BA6+ (172#CB1#<77+ (36#7<6#713+ (16A#AB<#=23+ 6<C#7=< 2008 R*$&&6 6#C73#6C2#AA7 6#273#227#1B3 C22#6B=#<C3 =#A<<#32A C2A#171#ACC (=6#2B2#7C1+ (13C#A77#CBC+ (C<#B16#722+ (13C#6A6#=13+ (1#C=1#C3<+

Distribution cost Administrative expenses 4ther operating expenses 0inance cost Share of lossQprofit of associates D net of tax

,rofit before taxation ,rovision for taxation ,rofit for the year after taxation Loss on disposal of assets of discontinued operations ,rofit for the year %arnings per share D basic and diluted

<6=#C1<#C2< 1=6#BA=#232

6<B#331#=C< C1#A2C#261 3==#<13#==7

7BA#1=A#6B3 171#<<1#<B6 67<#=1<#ACC

=62#7<<#271 62"BC

=33#67<#6=C 62"7C

6A6#26C#BB< 32

3==#<13#==7 17"6=

(<2#2=A#ACB+ 3C<#<7B#221 1<"C6

Sitara Chemicals Industries LTD

Sitara Chemicals Industries LTD

FINANCIAL STATEMENT ANALYSIS:

C*##&0' R('1 : This ratio measures the shortDterm debtDpaying ability of the company Current /atio R Y&(#6 CA CL C*##&0' R('1
C" A C" L

2008 11<AC61 13262CB 2"C=6

200A 1BB672< 1BA3=<2 1"22=

2090 327C7B3 32C3B21 2"CAC

2099 3276<1B 3<36A11 2"B12

2092 317663B 3676311 2"C1<

Currentratio
1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 2012 quick ratio

Sitara Chemicals Industries LTD ACID< TEST RATIO: This ratio is li!e the current ratio but excludes current assets such as inventories and prepaid expenses that may be difficult to .uic!ly convert into cash" Fuic! Assets R current Assets J inventory Y&(#6 CA 2008 11<AC61 T '(! <21<<3 10:&0' #" ;*1.3 (66&'6 =<=6AC 200A 1BB672< =1A17A 13==3<B 2090 327C7B3 71B13< 1=616<A 2099 3276<1B B=27<1 11B62=A 2092 317663B 126C66B 1126CC2

;*1.3 R('1 J;*1.3 A66&'6 I C*##&0' L1(/1!1'1&6 Y&(#6 ;A CL ;. R('1 2008 =<=6AC 13262CB 2"<7= 200A 13==3<B 1BA3=<2 2"=A= 2090 1=616<A 32C3B21 2"AB2 2099 11B62=A 3<36A11 2"==C 2092 1126CC2 3676311 2"7A1

quickratio
0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2008 2009 2010 2011 2012

quick ratio

Sitara Chemicals Industries LTD DEBT MANAGEMENT: This is the most common measure of the ability of a firmLs operations to provide protection to the longDterm creditor" TIME INTEREST EARNED: TIE J EBIT IINTEREST EKPENSE YEAR EBIT I0'&#&6'EC$IF10(0.& . 6' TIE 2008 7BA=6A 13C6A7 6"A=C 200A 6<B333 16AAB= 3"=2 2090 <6=C26 61A=37 1"=C2 2099 C1C622 6=B2C< 3"7C< 2092 CBABC7 6=B2C< 3"=B7

TIE
4 3.5 3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012

TIE

Sitara Chemicals Industries LTD DEBT RATIOLS: This ratio measures what portion of a companyLs assets is contributed by creditors" DEBT RATIO: TD I TA YEAR TD TA D&/' R('1
1 0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 2012

2008 317C23B 6=3332C "B3

200A 6A13<B6 <6A27A< "=C

2090 77=36<7 =6B7<A1 2"A3

2099 <3<12=3 BAC66C6 2"=2

2092 <2BA671 1211677 1 2"<2

D EB TRA TIO

Sitara Chemicals Industries LTD DIE RATIO: This ratio indicates the extent to which debt is covered by shareholdersL funds" It reflects the relative position of the e.uity holders and the lenders and indicates the companyLs policy on the mix of capital funds" DIE J TD I TE

2092 YEAR TD CE DIE 2008 317C23B 17A61B2 1"<C 200A 6A13<B6 1=<ABC3 1"C6 2090 77=36<3 1C3331A 3"63 2099 <3<12=3 37==CA7 3"16 <2BA671 3C=1CBC 1"AB

D \ERA TIO
2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 2012 D\E RATIO

Sitara Chemicals Industries LTD

TOTAL ASSET TURNO=ER: A companySs effectiveness in generating sales revenue from investments bac! into the company" The higher the Total Asset Turnover is the more effective use of the companySs investments" Total Asset Turnover can be very useful if you watch what actually ma!es up the Total Assets of the company" A company with low inventory and strict credit policies to !eep Accounts /eceivable low will help the Total Asset Turnover loo! even better" 4f course it depends on all of the companySs Total Assets" TAT J SALE I TA YEAR S(!&6 TA TAT 2008 6C736C1 6=3332B 1"2BB 200A 6B11BC2 <6A27A< "A1 2090 76A72<3 =6B7<=C "=C 2099 <7AC<A2 BAC66C7 "=3 2092 =1AB6CC 12116771 2"=1

T A T
1.2 1 0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 2012
TAT

Sitara Chemicals Industries LTD I0:&0' #" T*#0 :&#: This ratio measures the number of times merchandise is sold and replaced during the year I0:&0' #" '*#0 :&#: Cost of goods sold* Average Inventory YEAR CGS A I0:&0' #" ITO 2008 6C736C1 <21<<3 A"B= 200A 612=AA3 =1A27A <"27 2090 63BC=A3 =7C=C= <"2= 2099 <7AC<A2 B=27<1 ="6A 2092 731==77 126C66B 7"2=

Inventryturnover
8 7 6 5 4 3 2 1 0 2008 2009 2010 2011 2012
Inv ntr! turnov r

Sitara Chemicals Industries LTD

PROFITABILITY RATIOLS: ,rofitability /atios show how successful a company is in terms of generating returns or profits on the Investment that it has made in the business" If a business is li.uid and efficient it should also be ,rofitable" Ability to provide financial rewards sufficient to attract and retain financing" RETURN ON EQUITY (ROE): The /eturn on %.uity of a company measures the ability of the management of the company to generate ade.uate returns for the capital invested by the owners of a company" )enerally a return of 12K would be desirable to provide dividends to owners and have funds for future growth of the company ROE J N.I I C.E M900 YEAR NI CE ROE 2008 3C=2CC 17A61B2 32"12K 200A 3==<16 1=<ABC3 1=K 2090 6A6272 1C3331A 1CK 2099 =3367< 37==CA7 3<"3K 2092 =627<< 3C=1CBC 31"6K

ROE
30.00" 25.00" 20.00" 15.00" 10.00" 5.00" 0.00" 2008 2009 2010 2011 2012
ROE

Sitara Chemicals Industries LTD RETURN ON ASSETLS: The /eturn on Assets of a company determines its ability to utili'e the Assets employed in the company efficiently and effectively to earn a good return" The ratio measures the percentage of profits earned per dollar of Asset and thus is a measure of efficiency of the company in generating profits on its Assets" ROAJ N.I I TAM900 YEAR NI TA ROA 2008 3C=2CC 6=3332B B"1AK 200A 3==<16 <6A27A< 7"CK 2090 6A6272 =6B7<=C <"BK 2099 =3367< BAC66C7 A"1K 2092 =627<< 12116771 ="36K

ROA
9.00" 8.00" 7.00" 6.00" 5.00" 4.00" 3.00" 2.00" 1.00" 0.00" 2008 2009 2010 2011 2012
ROA

Sitara Chemicals Industries LTD

NET PROFIT MARGIN: The ,rofit &argin of a company determines its ability to withstand competition and adverse conditions li!e rising costs# falling prices or declining sales in the future" The ratio measures the percentage of profits earned per dollar of sales and thus is a measure of efficiency of the company"

NPM YEAR NI 6(!& NPM 2008 3C=2CC 6C736C1 A"<1K

J NI ISALEM900 2090 6A6272 76A72<3 B"<K 2099 =3367< <7AC<A2 11"6=K 2092 =627<< =1AB6CC 12"32K

200A 3==<16 6B11BC2 A"2K

NPM
12.00" 10.00" 8.00" 6.00" 4.00" 2.00" 0.00" 2008 2009 2010 2011 2012
#$%

Sitara Chemicals Industries LTD

EARNING PER SHARE The amount earned during the period on the behalf of each outstanding shares of common stoc!# calculated by dividing the periodOs total earning available for the firmOs common stoc! holders by the number of shares of common stoc! outstanding# %,/ R -IA0CS*T4"S S A/%S

YEAR NI #O.S SHARES EPS

2008 3C=2CC 1B<<6<CC 1<"C=

200A 3==<16 1B<<C6B2 17"6=

2090 6A6272 1B<<66CC 32"11

2099 =3367< 3272BC<C 62"7C

2092 =627<< 3272BC<C 62"BC

EPR
35 30 25 20 15 10 5 0 2008 2009 2010 2011 2012
E$R

Sitara Chemicals Industries LTD

GRASS PROFIT MARGRN &easure the percentage of each sale dollars remaining after the firm has paid for its goods" The higher the gross profit margin# the better (that is# the lower the relative cost of merchandise sold+ the gross profit margin is calculated as follows" )", &argin R )",*SaleU122

YEAR 2008 SALES 6C736C1 G.P C226BA G.P.M(#410 33"B7K

200A 6B11BC2 A2<11B 1B"<2K

2090 76A72<3 12B76B2 37"ACK

2099 <7AC<A2 1<<<3B7 3B"6BK

2092 =1AB6CC 1C=1A<< 61"A<K

G.PMARGIN
40.00" 30.00" 20.00" 10.00" 0.00" 2008 2009 2010 &.$ %AR&I# 2011 2012 &.$ %AR&I#

Sitara Chemicals Industries LTD OPREATING PROFIT MARGIN The operating for fit margin measures the percentage of each sales dollar remaining after all costs and expenses other tan interest #taxes and preferred stoc! dividends are deducted" It represents the Gpure profitsH earned on each sale dollar"opearating profit are OpureH because they measure only the profits earned on operations and ignore interest# taxes# and preferred stoc! dividends" A high operating profit margin is preferred*the operating profit margin is calculated as followsM OPREATING PROFIT MARGIN J $&#('104 $# 71'I S(!&6M900 YEAR SALES O.P# 71' O.P.M(#410 2008 6C736C1 A2A<=1 1A"C<K 200A 6B11BC2 <2C=16 16"6AK 2090 76A72<3 B=7A=6 1C"AAK 2099 <7AC<A2 13BC172 36"<3K 2092 =1AB6CC 1=21=32 3<"C3K

OPM
30.00" 25.00" 20.00" 15.00" 10.00" 5.00" 0.00" 2008 2009 2010 2011 2012 O$%

99: CRITICAL ANALYSIS

Sitara Chemicals Industries LTD 99.9 SUCCESS 8 FAILURE OF PRODUCTS

Sitara Chemical is producing .uality products throughout the world especially in local mar!et" This is because of its .uality of caustic" Top &anagement is basically of religiousDminded people so the public respects its products" SCIL started this unit for its production since 1CB7 because of being 0aisalabadLs oldest unitN the demand of its product is very high" The prices of its products are very high due to high .uality spinning# weaving and finishing cost" ThatLs why most of its products are out of the range of the poor people" There is no fare price shop in the unit as well as in the open &ar!et" The products are acceptable in the mar!et because of their durability and high .uality" The ma$or reason for the failure of some products is that poor people do not understand the .ualityN they only understand price level" 99.2: MAJOR COMPETITORS OF THE ORGANIZATION The following are the ma$or competitors of the Sitara Chemical Industries 1" Ithad Chemical Limited 3" -imer Chemical Limited

Sitara Chemicals Industries LTD 99.3 FUTURE PROSPECTS OF THE ORGANIZATION As evident from application of revenue nearly 72K of total revenue is spend on fuel and power expenses" Caustic Soda produced through electrolysis of water solution of common salt (8rine+ therefore =BK of total cost of its production for chemical division comprises of fuel and power and 12 K in case of textile division" At present one unit of electricity costs /s" =" It will be cost beneficial to have SCILLs own power generation plant" /ecent dramatic increase in furnace oil prices compelled the management to withdraw from furnace oil based power generation plant proposal" 4ther options are )as and coal based power generation plants" The company after studying various power generation technologies finally decided to go for gas engines" &anagement is hopeful that close to mid of next year SCILLs power pro$ect shall be in operation" After a successful experiment of internally developed production process and mar!eting of Calcium Chloride# during last three years on limited scale# SCIL is going for a larger export based plant for Calcium Chloride which is at final stage of technology selection P=C P# 5&.' &anagement is also wor!ing on ,?C pro$ect for which design wor! is at final stage" The ,?C pro$ect will consume Chlorine internally available" ,olyvinyl chloride (,?C+ is prepared from the organic compound vinyl chloride" ,?C is the most widely used of the amorphous plastics" ,?C is lightweight# durable# and waterproof" Chlorine atoms bonded to the carbon bac!bone of its molecules give ,?C its hard and flameDresistant properties"

Sitara Chemicals Industries LTD In its rigid form# ,?C is weatherDresistant and is extruded into pipe# house siding# and gutters" /igid ,?C is also blow molded into clear bottles and is used to form other consumer products# including compact discs and computer casings" ,?C can be softened with certain chemicals" This softened form of ,?C is used to ma!e shrin!Dwrap# food pac!aging# rainwear# shoe soles# shampoo containers# floor tile# gloves# upholstery# and other products" &ost softened ,?C plastic products are manufactured by extrusion# in$ection molding# or casting" S1'(#( P&# OC1,&" SCIL have opportunity to start new plant such as Sitara ,er 4xide" It will produce <<2 &etric ton per day" 5ith chemical compound of hydrogen and oxygen with the formula
3

43#

ydrogen peroxide acts as both an oxidi'ing and a reducing agent" Its

oxidi'ing properties are used in the bleaching of substances# such as hair# ivory# feathers# and delicate fabrics# In ,a!istan Textile sector is its main demand centre used as bleaching agent" It is also used medicinally# in the form of a 6K a.ueous solution# as an antiseptic and throat wash" ydrogen peroxide is used in restoring the

original colors to paintings that have dar!ened through the conversion of the white lead used in the paintings to lead sulfide" The hydrogen peroxide oxidi'es the blac! lead sulfide to white lead sulfate" It is also used as a source of oxygen in the fuel mixture for many roc!ets and torpedoes" As a reducing agent it reacts only with such easily reduced chemicals as silver oxide and potassium permanganate

Sitara Chemicals Industries LTD

92: SHORT<FALLSIWEAKNESSES OF MARKETING DEPARTMENT

92.9 SWOT ANALYSIS STRENGTHS Ade.uate financial resources Speciali'ed in printing ave a diversified units of industries )ood mar!et image Competent management and wor!ers ave ability to compete with competitors In home facility of production Loyal customers Loss sustaining capacity WEAKNESSES :ncertain chances of promotion Salary pac!age less attractive Centrali'ed decision ma!ing Lac! of a proper human resource system# hence employees are not motivated to develop their creative and innovative abilities" Due to high turn over the organi'ation is not en$oying the economy of scale" OPPORTUNITIES Large scale productions because of new mar!et coverage and increasing demands"

Sitara Chemicals Industries LTD

Introduction of new variety in garments %xtension of fashionDdesigning 9 stitching departments

THREATS )ST and 5T4 pose biggest threats Instability of prices due to currency devaluation %ntrance of new and .uality conscious competitors Low price offered by the competitors Strong promotional activities by the competitors to convince buyers -ew .uality# environmental and social accountability standards overhead are increasing rapidly"

PEST ANALYSIS
P !1'1.(!
,olitical factors include tax policy# labor law# environmental law# trade restrictions# tariffs# and political stability are the factors which effects the business of the company" 5ith every passing day government changes the tax policy which is not good for the business atmosphere of the country" Some companies did not show the complete record of the companies due to save the amount of tax but SITA/A C %&ICAL is only company in the ,a!istan which gives the complete tax to the government" ,olitical stability also effects the overall business of the country which also effects SITA/A C %&ICAL"

E. 0 +1.
%conomic growth# interest rates# exchange rates and the inflation rate" These factors have ma$or impacts on how businesses operate and ma!e decisions" 0rom

Sitara Chemicals Industries LTD the previous year interest rate increased which affects commonly all the business in the ,a!istan so it also affects the SITA/A C %&ICAL" Interest rates increased the cost of capital for the company" %xchange rates increase the cost of production" %xchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy"""

Sitara Chemicals Industries LTD

S .1(!
0actors include the cultural aspects and include health consciousness# population growth rate# age distribution# career attitudes and emphasis on safety" Trends in social factors affect the demand for a companySs products and how that company operates" SITA/A C %&ICAL is a multinational company witch effects the culture of ,a!istan it hires employee from home country" These employees wear short dresses so in this way our culture is affected" A'i' 0atima Trust Sitara Institute of Technology A'i' 0atimah Trust ospital )hafoor 8ashir Children ospital A'i' 0atimah )irls igh School

T&.%0 ! 41.(!
-ew innovation in the technology affects the SITA/A C %&ICAL" Company has the latest plant in the ,a!istan" SITA/A C %&ICAL three ,lant of caustic soda so due to these plants the SITA/A C %&ICAL is the top producer of Caustic soda in ,a!istan" SITA/A C %&ICAL spends a lot of budget on research and development"

93: CONCLUSION 8 RECOMMENDATION FOR IMPRO=EMENT

The remedy for wea!ness# discussed in previous chapter# is described serially asM 9 E C 0.&0'#('1 0 O7 P F&# =&#6*6 D&!&4('1 0 O7 P F&#6 There is a need to delegate the powers down the hierarchy so that C%4 could concentrate only on issues of strategic importance

Sitara Chemicals Industries LTD 2 E U00&.&66(#" D .*+&0'('1 0 M(" B& C 0:&#'&, I0' P($&#!&66 E0:1# 0+&0' &icro 0ilm scanning of all the documents is recommended for all the documents which could be attached to vouchers as annexure in system and can be accessible for the person who want to see evidence by $ust clic!ing attachment"

3 E C ++*01.('1 0 C(0 /& I+$# :&, T%# *4% I07 #+('1 0 T&.%0 ! 4" There is a need to promote eDmail system of sending and receiving mails to reduce cost of stationery and storage" B E B*#&(*.#('1. S'#*.'*#(! +*6' /& '#(067 #+&, I0' 6'#*.'*#& 0lat organi'ation structure is recommended to reduce cost and to improve decision ma!ing process" This will not only leads to cost efficiency but also promotes $ob satisfaction" D < W&!! D&710&, J / D&6.#1$'1 0 (0, J / R '('1 0 W1!! I+$# :& P&#7 #+(0.& A0, T&(+F #3 A well defined $ob manual# describing all inns and outs of $ob# along with $ob training is necessary to win not only loyalty of employees but also to enhance .uality of $ob performance" >ob rotation will improve confidence and mutual dependence among employees as $ob will not suffer in case of absence of any employee" G < T&.%01.(! P&#6 0 (6 I0'&#0(! A*,1' # Internal Audit Department consist of person having financial bac!ground# therefore Internal Audit Department emphasi'e mostly internal control and procedure" 4n the F!(' #4(01)('1 0

Sitara Chemicals Industries LTD other hand technical side is absolved from all accountabilities" There is a need to appoint in Internal Department a technical person to loo! in the matters of purely technical nature" ? < M #& D1:&#6171.('1 0 I6 R&N*1#&, CompanyLs is consistently reinvesting in ChloralDal!ali industry# as evident from continuous increase in Caustic soda production capacity" -ow a days ChloralDal!ali industry is in full swing and company is en$oying abnormal proffer# however in case of adverse situation (discussed in S54T analysis ,D6B+ Company would be in hot waters" 5here as in diversified portfolio# such ris! can be minimi'e" 8 < B#(10 D#(10 R&N*1#&, T B& S' $$&, It ta!es nearly 1 year by employee to ma!e an ac.uaintance with organi'ation culture# machines and complicated procedures" If employee resigns after two or three years then its means company is serving as trainee institute and not availing productivity from trained employees" Salary and wages constitutes only 6K of C")"S and Company is facing high turn over# which means employees are under paid" It is recommended to retain experienced brain from being drained" A < M #& I0:&6'+&0' 10 IT 16 #&N*1#&, SCIL has signed SA, (a )ermanyDbased %nterprise /esource ,lanning (%/,+ Solution+ with the Abacus Consulting )roup on the A th December# 322A" This is a great step towards the technological enhancement of the organi'ation and is indeed an evidence of the Technology Aware &anagement that is possessed by the SCIL" This will lead to the better utili'ation of the information resources of the organi'ation"

Sitara Chemicals Industries LTD

9B: REFRENCES 8 SOURCES USED

REFERENCES AND SOURCES USED
Annual reports of M Sitara Chemical Industries Ltd Sitara 0lash Ithad Chemicals Ltd" >ournalsM %conomic Survey 4f ,a!istan ,rinciple 4f &ar!eting Cost Accounting Statistics 0or &anagement Advance Accounting ,rinciple 4f Corporate 0inance 0undamentals 4f 0inancial &anagement 8usiness /eserch &ethods Accounting &anagement And Cost Accounting I$a' ussain (D)& Sectt*)"& &ar!eting+ )hulam Abbas(&anager &ar!eting*)ases+ SOURCES www"sitarachemical"com ,helip Kotler 9 )ary Armstrong :sry# ammer 9 &at' /ichard I Levin 9 David S /ubin & ) Shu!la 9 T S )rawal /ichard A 8realey 9 Stewart C &yers ?en ourn Donald / Cooper 9 C 5illiam %mory &eigd 5illiams a!e 8etter Colin Drury