Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
of
Packages Ltd
Qaiser Mehmood
Session (Jan 2007–Dec 2008)
at
It is hereby certified that the report has been thoroughly and carefully read and
Report by Qaiser mehmood, Roll 7241, Session (Jan 2007 to Dec 2008) Evening, in
Supervisor: _________________________
Observer: __________________________
Head of Department: _______________
ACKNOWLEDGEMENT
It would obviously be injustice not to mention the name of the people involved to
make this assignment possible and helped their utmost to make me understand the
overall operation of the company as of their best knowledge.
Despite of the most hectic schedule, Maa'm saher helped me so much. I'm really
grateful to maa'm for clarifying my concepts and making me learn from her
experience. Whatever I learnt from you will definitely help me in my upcoming
study and the professional life ahead. Thank you so much for being so co-
operative and so helpful every time. I hope maa'm I have been up to your
expectations.
In the end, I'll like to thank all my other colleagues, Mr. Ishtiq, Mr. Qaiser, and all
my other fellow internees, here and in branch, for their unconditional support and
help in making I learn in a good environment.
Dedication
• My Teachers
• My Parents
And All Those Who Are Struggling And Fighting For Islam In Right Directions
Financial Statement Analysis
of
Packages Ltd
COMPANY PROFILE
Established in 1956 as a joint venture between the Ali Group of Pakistan and Akerlund
and Rausing of Sweden, Packages Limited provides premium-packaging solutions for
exceptional value to individuals and businesses. We are the only packaging facility in
Pakistan offering a complete range of packaging solutions including offset printed
cartons, shipping containers and flexible packaging materials to individuals and
businesses world-wide. Our clientele includes illustrious names such as Unilever and
Pakistan Tobacco Company, who have been our customers for over 50 years. We employ
over 3000 people and had sales of over US $ 100 million in 2004.
Listed on all three stock exchanges in Pakistan, Packages Limited has maintained a long-
time credit rating of AA. Our joint ventures and business alliances with some of the
world's biggest names reflect our forward-looking strategy of continuously improving
customer value through improvements in productivity.
Packages have always been at the forefront of new developments in packaging research
and have pioneered several innovations, including the use of wheat straw as a raw
material for paper and board manufacture. Our on-site paper and board mill, established
in 1968, has constantly increased its production capacity. A new plant with even greater
capabilities is planned for the near future.
Products
We are producing high quality paper and board since 1965 using environment friendly
manufacturing processes. We specialize in making a variety of duplex boards and paper.
Our products are tested for high performance in terms of strength, stiffness and gloss.
From coffee cups to the books we read, from Tetra Pak juice containers to huge shipping
containers, paper and board products touch our lives in a thousand ways every day.
PAPER
we produce:
• High gloss writing paper
• Fluting paper
The client’s determines paper quality and weight specific requirements and Packages
ensures this is carried out to the exact specifications provided.
BOARD
we manufacture several types of board. Food Board, a basic raw material in liquid food
packaging, is being manufactured since 1979 for Tetra Pak Pakistan Limited. This
material is used in making aseptic packaging for milk, cream, oil, fruit juices and other
perishable food items.
• Bleached board
• Liner board
The foundations of this business line were laid about 50 years ago with the formation of
the offset printing department. Carton Business Unit production experts work closely
with pre-press and technical staff to deliver a durable, aesthetically pleasing and
technically sound package to the customer.
of the carton line is around 18 - 20 thousand tones per annum. The strong backward
integration within the Packages value chain has given the carton line a competitive edge
in terms of backend material availability. Prompt material availability reduces turn
around time and ensures timely delivery.
INDUSTRIES
• Soap /
Ddetergent
• Pharmaceuticals
• Electronics
INDUSTRIES
• Textile
• Food
• Tobacco
• Soap
• Detergent
With improved barrier properties and lower cost compared to rigid packaging,
flexible packaging is steadily gaining importance in the packaging industry.
Our flexible line makes high quality packaging films and laminates, and offers
other specialized services such as rotogravure printing and sleeve-making.
Flexible packaging combines different plastic films, aluminium foil and paper
to produce laminates of two or more layers for providing layered protection
against moisture, gases and odours. Used where colourful package design and
preserving product quality are important, such as in the food and
pharmaceutical industries, flexographic printing offers economy with quality.
INDUSTRIES
• Textile
• Food
• Tobacco
• Soap
• Shampoo
• Pesticide
• Milk powder
CONSUMER PRODUCTS
A range of products for those annoying problems in life: our consumer products
feature great ideas for making everyday living easier and more comfortable,
both
indoor and out.
Tissue Products
Personal Hygiene
Paper Products
Packages Limited
Common Size Analysis (Vertical and Horizontal)
Horizontal
Vertical Analysis
Analysis
66.5 64.7
Non-Current Liabilities
Long-term finance
8.6 0 0
Deferred Liabilities
4.7 8.1 100
Liabilities against subject to
.0073 .09 10
finance lease
0.2 0.8 32
Derivatives
33.5 35.3
100 100.
Assets
44.10 51.62
100.0 100.00
Horizontal
Vertical Analysis
Analysis
Operating ratios:
2005=39
2004=40
The days receivable indicate the length of the time that has
been outstanding at the end of the year. Packages ltd have
days sale of receivable of 39 days in 2005 and 40 Days in 2004
which indicates that packages ltd converted its sale into net
income quickly in 2005 then in 2004. This may be changed due
to seasonal sale or change in sale for any other reason. To
remove this fact we take the gross receivables.
2005=9
2004=9.33
2005=73
2005=73 days
2004=85 days
The day’s sales in inventory estimate the number of days that
it will take to sell the current inventory. Due to different reason
estimate may be vary. The cost of goods sold figure is based
last year’s sales, same divided by the number of days in a
year. Ending inventory may also differ due to the by using
different methods for inventory. The packages ltd has day’s
sales in inventory 73 days in 2005 and 85 days in 2004.
2005=5.13
2004=4.83
2005=71 days
2004=76 days
2005 2004
73 Days 88 Days
Solution:
Operating cycle represent the period of acquisition of goods
and conversion of the good into cash. It is higher for the
companies like Packages ltd. Because the company purchase
raw material converts it in to product then it sells it to whole
seller. All process increase the operating cycle.
2005=2222907
2004=675932
2004=1.4
Current Liabilities.
2005=1.20
2004=0.45
Acid test ratio includes the only most liquid items of the
current assets. Acid test ratio may decrease from 1. Packages
ltd is manufacturing unit. For such like company acid test ratio
must be round about the 1. But Packages ltd has acid test ratio
1.20 in 2005 and 0.45 in 2004 although it increased in 2005
but enough. Means Packages can easily meet all its current
liability with its most liquid asset. It should manage through
the sale of inventories.
2005=0.86
2004=0.08
Cash receivable indicates include the only the cash in hand. Packages ltd have
low cash ratio. Packages ltd has most of its current assets in inventory and Net
receivables. Packages ltd have very low amount in hand as compare to its current
liability.
2005=3.91
2004=8.86
working capital.
2005=1.50
2004=1.54
Debt to Tangible Net Worth = Total Liabilities / (Share Holder Equity – Intangible Assets)
2005=1.50
2004=1.55
Net Profit Margin = (Net Income Before Minority Share of Earnings and . Nonrecurring
2005=0.14
2004=0.16
This ratio measures the profitability of the company. This measures of net income rupees,
generated by the each rupee. The Packages ltd have good profitability ratio.
2005=0.39
2004=0.36
Total assets turnover indicates the ability of the firm to generate sale using its assets. The
Packages ltd has total asset turnover 0.39 in 2005 and 0.36 in 2004.
Return on Assets = ( Net Income Before Minority Share of Earnings and Nonrecurring Items)
2005=0.11
Return on assets measure the firm’s ability to utilize its assets to create profits by
comparing with the assets that generate the profit. Packages ltd has return on assets 0.11
in 2005 .
2005=0.13
2004=. 0134
Sales to Fixed Assets = Net Sales / (Average Net Fixed Assets “Exclude Construction in
Progress”)
2005=0.64
2004=0.60
2005 2004
2.242 2.618
Solution:
Sale to fixed assets measures the firm’s ability to make productive use of its property, plant,
2005=0.19
2004=0.22
Gross profit margin tells us about the control on the cost of goods sold. Packages ltd has
gross profit margin 19% in 2005 and 22% in 2004. It means company’s gross profit margin
is decreases as compare to last fiscal year. This shows the good control on the cost of goods
sold. Gross profit margin predict about the profitability of the company.
2005=0.68
2004=0.66
Basic Earnings per Common Share = (Income – Preferred Dividend)/ . (Weighted Average
Number of Common Shares Outstanding)
2005=16.25
2004=19.68
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Book Value per Share = (Total Stock Holder Equity – Preferred Stock) / No. of Common
Shares
2005=0.11
2004=0.09
------------------------------------------------------------------------------------------------------------
2004=1.06
2005=.04
Operating cash floe to current maturity of long term debt and current notes
2005=174
2004=0.91
2005=1.75
2004=1.23
Operating cash flow per share=operating cashflow-p.dividend/common share
2005=1.20
2004=0.45