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Hailey College of Banking & FinancePresented To : Sir IdreesPresented by:Isma Nizam M12BBA013Zartasha Shaukat M12BBA057Kehkashan Sakhawat M12BBA067PACKEGES LTD.Imagination Beyond the Edges

INTRODUCTIONPakistans leading packaging solution provider and also a leading manufacturer of tissue paper productsEstablished in 1957 as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden, to convert paper & paperboard into packaging for consumer industryThe business partners of packages limited are Nestle limited, Tri-Pack films limited, Packages Lanka private limited, First international bank limited, DIC limited, IGI Pakistan and coca-cola beverages Pakistan limited.

Unilever and Pakistan Tobacco Company, are packages customers for over 50 years. Currently it is the market leader in terms of total capacity installed.They are rated by (PACRA)Pakistan credit rating agency limited. Rating as on June 2014: Long Term AA Short Term A1+INTRODUCTION

To become a business and production model by providing quality products to the consumers and industry with keep introducing latest machines and technology & Develop strong position of the company to face challengesVision

To be a company that continuously enhances its technologies and competes the market and To be a company that promotes innovative culture and attracts customers along with achieving a profitable growth by providing fair returns to the investors. MISSION

PRODUCTS Range

Financial Analysis2014-2013Liquidity AnalysisProfitability AnalysisSolvency AnalysisEfficiency Analysis

The ability of a business to pay its short term debts is Called liquidityLiquidity AnalysisCurrent Ratio Quick Ratio Absolute Liquid Ratio Working Capital

Its standard is 2:1. The companys present condition is satisfactory because its answer is near to the standard and the company has funds to pay its short term debts. But only a slight increase occur than 2013 It measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current assetsto itscurrent liabilities

It measures the ability of a company to use itsnear cashor quick assets to extinguish or retire itscurrent liabilitiesimmediatelyThe quick ratio shows the true position of the liquidity position of the company. Its standard is 1:1. In 2014 it is increased by 0.07 which is good for company health.

Absolute liquid ratio shows cash & Cash equivalents position of the Co. which has increased as compare to last year and near to standard ratio. It shows that Company is capable to pay about half of its current liabilities without referring to its other receivable, stocks and non liquid current assets

(2013)=8359417-5331298=3026119The working capital of the company satisfactory in 2014 as it has increased than in 2013. This shows now the company has sufficient funds to meet its routine expenses of the business.The capital of a business which is used in its day-to-day trading operations,

Solvency Analysis

Debt Equity RatioDebt service Interest Coverage RatioThe ability of a business to pay its long term or total debts is called Solvency analysis

Debt Service Interest Coverage RatioIt is a popularbenchmarkused in the measurement of an entity's (person or corporation) ability to produce enough cash to cover its debt (including lease) payments.

Debt Equity RatioIt indicates what proportion ofequityanddebtthe company is using to finance its assets.

Due to decrease in tax charges EBIT has increases in 2014 as compare to 2013 and company has taken low finance in 2014 which decreases interest charges as compare to 2013, thus become the cause of increase by 1.06 in interest coverage ration in 2014 as compare to 2013.Due to increase in profit in 2014 Debt.Equity ratio became low in 2014 as compare to 2013 which is good for company health. It means now company has to discharge just RS 0.085 liability instead of RS. 0.12 against Rs 1.00 Overall Solvency position is good of company in 2014 as compare to 2013.

Interpretation:

Efficiency AnalysisThe effectiveness of the management towards utilization of resources to generate sales and manage its collection system.Inventory Turn Over ratioDebtors Turnover ratioAsset Turn over Ratio

It shows how many times a company's inventory is sold and replaced over a period.

Inventory Turnover RatioIt tells how quickly, on average, inventory goes from being purchased to being sold.

This ratio determines how quickly a company collects outstanding cash balances from its customers during an accounting period

This ratio determines how quickly a company collects outstanding cash balances from its customers during an accounting period. A reducing period of time is an indicator of increasing efficiency

Asset Turnover RatioItis an indicator of the efficiency with which a company is deploying itsassets. The higher theratio, the better it is

Activity Ratios are showing overall a declining trend and less efficiency in utilization of companys resources as compared to previous years. It may be due to company has changed its policies and conduct recently. Inventory Turnover is unfavorable and asset turnover has also decreased by 0.02% means generating less from sale by spending upon assets, but the debtors turnover ratio is favorable for company.Further average age of inventory has also increased from 59 days to 77 days. It shows that inventory is converting less efficiently in sales and company is bearing more storage expenses for inventory. All these turnover ratios contribute to less efficiency and generating less profits from operations than expected in 2014.Interpretation:

Profitability RatiosGross Profit marginOperating Profit marginNet Profit margin The ability of the business to generate return for the owner is called profitability analysis.

Gross Profit Ratio

A financial metric used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.

Operating Profit Ratio

Aratioused to measure a company's pricing strategy andoperatingefficiencyNet Profit Ratio

It measures how much out of every dollar of sales a company actually keeps inearnings.

Gross position of the company is showing profit in current year with an increase of 0.27% as compared to previous year. Increase in operational cost as compare previous year has become the cause of decline in operational profit in 2014.Net profit Ratio has also increased by 4.47% in 2014 due to decrease in tax and operational expenses. Overall profitability of the company is satisfactory as there is a slight increased in profits of 2014 than in 2013Hence now paying more in 2014 Basic EPS RS. 29.89/. to its stakeholders as compare to 2013 in from of return on equity and investments.Interpretation:

Conclusive Analysis

Packages has a good credit control policy. And by efficiently managing its debts has a good liquidity position.However Packages is not such good in its solvency ratio which indicates improper usage of its assets.Packages has more favorable profitability ratio in 2014 than in 2013 which indicates its good control on expenses and growth in sales.The Efficiency ratio shows the unfavourable trendOverall position of Packages is good but it can be more better by utilizing of its assets in effective way and through applying more effective policies.