University of Education

Lower Mall Campus, Lahore

Department of Economics and Business Administration

Submitted By:
14-BBA-H-FM-67 Muhammad Awais
14-BBA-H-FM-94 Hassan Ali Shah
14-BBA-H-FM-101 Usama Ijaz Butt
14-BBA-H-FM-74 Hussnain Ali
14-BBA-H-FM-80 M. Saddique
2014-2018

Submitted to:
Ma’am Madiha

1
Table of Contents
Introduction ........................................................................................................... 3
Vision ..................................................................................................................... 4
Mission .................................................................................................................. 4
Objective................................................................................................................ 4
Clients .................................................................................................................... 4
Competitor of Roshan Packages Pakistan .............................................................. 5
Product Line ........................................................................................................... 6
Organizational Hierarchal Chart ............................................................................. 8
Market Standing .................................................................................................... 9
Analysis ................................................................................................................ 10
Ratio Analysis ....................................................................................................... 20
Conclusion ........................................................................................................... 21
References: .......................................................................................................... 22

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Introduction
In 1959, Dr Aijaz Hassan Qureshi began a journey of excellence after returning from Germany
with a PhD. He launched Urdu Digest which served as the onset of an extraordinary journey
forward. The Urdu Digest became Pakistan’s most circulated publication due to its engaging
content pertinent to attentive and thoughtful editorials and subject matters.

Roshan Enterprises launched in 1989 to export Pakistan’s fruits to the world and the enterprise
was a pioneer and forerunner in recognizing the potential in Pakistan’s fruit crops. At this time in
history, fruit was omitted in Pakistan’s export culture, and Roshan Enterprises invited the prospect
through intellectual marketing techniques and advanced fruit processing units. The enterprise
exceeded expectations and evolved into Pakistan’s largest fruit exporter.
The corporation’s futuristic approach and high volume export demand prompted the setup of an
in-house packaging unit. In 2002, Roshan Packages Limited was established to meet internal
demand for Corrugated Packaging. After this momentous initiation, the company grew
exponentially and established European standards Flexible Packaging and Co-extruded Film
Solution Plants in 2011 and 2015, respectively.

Presently, Roshan Packages Limited specialized in world-class Co-extruded films, Flexible

Packaging and Corrugated Packaging materials and solutions all in essence to current industry
trends. Consequently, Roshan Packages Limited has gained an outstanding pool of national and
international consumer database a credit to its remarkable progression.

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Vision
We aspire to be the leader in providing innovative and aesthetically integrated packaging solutions
to enable the key business processes of our customers.

Mission
Our mission is to delight our customers by providing innovative packaging products and solutions
while upholding the principles of corporate governance and pursuing the creation of superior value
for our stake holders.

Objective
We are dedicated to be the consistent and preferred supplier for our clients by meeting their
expectations through innovation, continuous advancement and by utilizing economic and human
resources efficiently. We are heading to develop the long-term sustainability of the organization
by constantly investing in technologies and human resources. We aim to be a market leader for
quality products, and to grow continuously by adding new products and new customers to our
portfolio.

Clients

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Competitor of Roshan Packages Pakistan
Paper and board industry is growing in Pakistan and attracting many companies to invest in this
sector and many have been working in this sector from a long time. Some of the competitors of
Roshan Packages are as follow:

 Packages Limited
 Cherat Paper sack limited
 Sayid Paper Mills
 Security Papers Ltd
 Premier Paper mill

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Product Line
Flexible packaging

Roshan Packages Limited’s international standard Flexible packaging plant converts local and
imported substrates into flexible packaging.

This state-of-the-art facility enables us to offer high-quality customized, flexible packaging

solutions for different industrial packaging needs ranging from health & personal care,
pharmaceuticals, snacks, confectionery, shampoo, detergents, poultry & processed food, oil &
ghee, ice cream & dairy to water and beverage packaging.

Water & Beverage Food Dairy Oil & Ghee

Pharmaceutical personal products Industrial Agriculture

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Corrugated Packaging Plant

Roshan Packages Limited’s European Standard Corrugated Packaging Plant can build plain and
printed transit cartons and further complex printed die-cut works.Our corrugated packaging
manufacturers use the latest technology to customize and develop multiple sized corrugated
cartons, box cartons, stock boxes, custom boxes, die-cuts, pads, corners and partition sheets.

Our product range is suitable for, but not limited to, FMCG, pharmaceuticals, healthcare,
electronics, textile, cargo & logistics, candy, fruit & vegetable, oil & ghee and dairy packaging.

Vegetable Packaging Dairy Packaging Food Packaging Fruits Packaging

Snacks Packaging Home appliances Pharmaceutical Packaging Paint Packing

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Organizational Hierarchal Chart

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Market Standing
The financial year 2016-2017 was another successful year for the Company. The Company
reported net sales of Rs. 4,098 million representing a sales growth of 13.2%. The operation was
able to record sale of 4,638 tons in 2017 as compared to 28,825 tons in 2016, showing a volumetric
growth of 17%.

Turnover 4,098 3,621 million

Gross Profit 552 514 million
Profit before Tax 256 282 million
Profit after Tax 240 262 million
Earnings per Share
The earnings per share for current and previous year are as follows:
EPS-2016: 3.49/share
EPS-2017: 2.77/share

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 Analysis

Change Change

2017 2016 2016-2017 2016-15

Rupees Rupees Percentage Percentage

Equity and liabilities

Share capital and reserves

Authorized share capital

150,000,000 (2016: 50,000,000)

ordinary shares of Rs 10 each 1,500,000,000 500,000,000 200% 100%

Issued, subscribed and paid up share

capital

107,500,000 (2016: 29,939,000)

ordinary shares of Rs 10 each 1,075,000,000 299,390,000 259% -

Capital reserve: Share premium 2,339,165,370

Revenue reserve: Un-appropriated profit 808,065,553 988,073,315 -18% 37.33%

-
Attributable to owners of the parent
company 4,222,230,923 1,287,463,315 228%

Non-controlling interest 168,254,671 135,967,323 24% -

4,390,485,594 1,423,430,638 208% -

577%
Surplus on revaluation of operating fixed
assets 1,125,148,562 1,142,934,176 -2%

Non-current liabilities

Supplier’s credit – unsecured 226,792,596 265800913 -15% 78.42%

Loans from directors – unsecured – 18133163

Long term finances – secured 506,371,642 436108100 16% -

Liabilities against assets subject to

finance lease 17,200,990 29411603 -42% 298.45%

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Deferred taxation 297,754,400 295672712 1% 124.84%

Deferred liabilities 59,776,480 42011304 42% -88.88%

1,107,896,108 1087137795 2% 216.23%

Current liabilities

Current portion of long term liabilities 197,746,140 120058910 65% 476.93%

Short term borrowings – secured 755,639,809 604845393 25% 67.26%

-4% -5.69%

Trade and other payables 990,730,275 1029228863

Accrued finance cost 11,951,473 10353180 15% -

1,956,067,697 1764486346 11% 22.25%

Contingencies and commitments

8,579,597,961 5,417,988,955 58% 79.90%

Assets

Non-current assets
23% 146.67%

Property, plant and equipment 3,981,774,327 3,244,226,990

Assets subject to finance lease 34,508,466 45,160,209 -24% 235.12%

Intangible assets 4,615,676 4,654,042 -1% -

23% 108.78%

Long term deposits 16,759,933 13,672,635

22% 164.50%

4,037,658,402 3,307,713,876

Current assets
Stores and spare parts 108,302,192 55,723,979 94% 25.86%

Stock-in-trade 575,197,025 445,186,665 29% -19.69%

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Trade debts - unsecured 1,191,625,522 963,552,761 24% 30.73%

Advances, deposits, prepayments and

other receivables 632,463,724 368,416,098 63% 42.50%

Cash and bank balances 2,034,351,096 277,395,576 633% 96.81%

4,541,939,559 2,110,275,079 115% 18.20%

Profit and Loss Account

Change Change
2017 2016 2016-2017 2016-15

Rupees Rupees Percentage Percentage

Sales 4,098,007,176 3,621,881,861 13.14% 1.49%

Cost of sales (3,545,165,032) (3,107,313,485) 14.0% -2.47

Gross profit 552,842,144 514,568,376 7.3% 34.66%

Administrative expenses (99,757,283) (79,462,254) 25.5% 3.29%

Selling and distribution expenses (100,549,316) (72,109,889) 39.4% -1.91%

Other expenses (32,813,009) (37,512,627) -12.5% 189.4%

Other income 42,774,384 2,155,260 1884.6% -55.5

Finance cost (106,574,401) (45,719,545) 133.1% -19.19

68.71%
Profit before taxation 255,922,519 281,919,321 -9.2%

Taxation (16,657,847) (20,500,617) -18.7% -40.77

Profit for the year 239,264,672 261,418,704 -8.7% 97.28%

Profit/(loss) attributable to:

Owners of the parent company 239,410,283 261,544,428 -8.4% -

Non-controlling interest (145,611) (125,724) 15.8% -

239,264,672 261,418,704 -8.4% -

Earnings per share - basic and diluted 2.77 3.49 -20.6% -

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Reasons of Change

Equity and liabilities 2017 2016

1,075,000,000 299,390,000
Issued, subscribed and paid up share capital 107,500,000 (2016:
29,939,000) ordinary shares of Rs 10 each

Reason:
Ordinary shares of Rs 10 each fully paid in cash in 2017 by the amount of 57,336,000 against the
value of 24,836,000 in 2016 and shares of Rs 10 each issued as bonus shares of amount 45,061,000
in 2017 which were nil in 2016.
These shares were issued against the fair value of land acquired which measures 48 kanals and 12
Marla’s and is situated opposite to Sundar Industrial Estate, Bhai Kot, Raiwind, Lahore.

Equity and liabilities 2017 2016

2,339,165,370 Nil
Capital reserve: Share premium

Reason:
Capital reserve share premium amount of 2,339,165,370 are issued in 2017 against value of 2016
which is nil. This reserve can be utilized by the Group only for the purposes specified in section
81 of the Act.

2017 2016
Surplus on revaluation of operating fixed assets

1,125,148,562 1,142,934,176

Reason:
This surplus over book value resulting from the revaluation of freehold land, buildings on freehold
land, plant and machinery and electric installations of the packaging materials segment, adjusted
by incremental depreciation arising out of revaluation of above mentioned assets except freehold
land. The latest valuation was carried out by an independent professional valuer, Unicorn
International Surveyors, on June 30, 2016, on present market value basis.

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 Non-current liabilities 2017 2016

226,792,596 265,800,913
Supplier’s credit - unsecured

Reason:
Supplier’s credit – unsecured is decreased of amount payable to Windmoller & Holscher,
Germany, against purchase three following machines on basis on ten half yearly unequal
installments.
Company buy following Co-Extrusion Line machine with Rs 145,356,436 in 2017 and Rs
171,384,577 in 2016.Gravure Printing Press machine with Rs 129,689,836 in 2017 and Rs
156,576,003 in 2016 and one new machine in 2017 which is Paper Board Handling System
machine with Rs 35,937.

Non-current liabilities 2017 2016

Nil 18,133,163
Loans from directors - unsecured

Reason:
Loans from directors – unsecured is decrease because no loan issued in 2017 and it was nil in this
year against the value of 18,133,163 in 2016.

Non-current liabilities 2017 2016

506,371,642 436,108,100
Long term finances - secured

Reason:
The value of long term finances increase because of term finance facility to finance corrugator
unit capacity expansion project from UBL. The aggregate amount of the facility is Rs 400
million out of which Rs 351.2 million (2016: Rs 80.295 million) has been availed as 270,904,326
in 2017 and 80,295,600 in 2016. It is repayable in six half yearly installments. Mark up is
payable semiannually.

Non-current liabilities 2017 2016

Liabilities against assets subject to finance lease 17,200,990 29,411,603

Reason:

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It is decreased because present value of minimum lease payments is decreased in 2017 by the
amount of 30,756,319 against the amount of 43,123,346 in 2016.

Non-current liabilities 2017 2016

Deferred Taxation 297,754,400 295,672,712

Reason:
It is increased because accelerated tax deprecation increases taxable in 2017 and taxable income
increases therefore deferred taxation increase in 2017.

Non-current liabilities 2017 2016

Deferred liabilities 59,776,480 42,011,304

Reason:
It is increased because the value of accumulating compensated absences of employee’s increases
in 2017 as compared to 2016 therefore deferred liabilities increase in 2017.

Current liabilities 2017 2016

197,746,140 120,058,910
Current portion of long term liabilities

Reason:
It is increased because the value of Supplier’s credit increases in 2017 as compared to 2016
therefore Current portion of long term liabilities increase in 2017.

Current liabilities 2017 2016

755,639,809 604,845,393
Short term borrowings - secured

Reason:
It is increased because the value of running finance increases by 114 % in 2017. Short term running
finance facilities taken from commercial banks therefore Current portion of long term liabilities
increase in 2017.

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 CURRENT LIABILITIES 2017 2016

990,730,275 1,029,228,863
Trade and other payables

Reason:
It is increased because the value of trade creditors increases by 7.6 % in 2017. And also bill payable
increases by 15 % as compared to 2016 which cause increase in Trade and other payables in 2017.

CURRENT LIABILITIES 2017 2016

11,951,473 10,353,180
Accrued finance cost

Reason:
It is increased because Long term finance increases by 60% in 2017 which cause increase in
Accrued finance cost in 2017.

8,579,597,961 5,417,988,955
Contingencies and commitments

Reason:
It is increased because Long term finance increases by 60 % in 2017 which cause increase in
Accrued finance cost in 2017.

NON-CURRENT ASSETS 2017 2016

11,951,473 10,353,180
Property, plant and equipment

Reason:
The value of property, plant and equipment is increased in 2017 by 23% as compare to 2016 due
to increase in the value of Buildings on freehold land with 529,051,663 and also the increased in
the value of Plant and machinery with 1,376,093,736.

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 NON-CURRENT ASSETS 2017 2016

34,508,466 45,160,209
Assets subject to finance lease

Reason:
The value of assets subject to finance lease is decreased in 2017 by -24% as compare to 2016 due
to the decrease in Transferred to operating fixed assets cost during the year 2017 with 7,096,000
and due the annual depreciation rate 20%.

CURRENT ASSETS 2017 2016

Stores and spare parts 108,302,192 55,723,979

Reason:
The value of stores and spare parts is increased in 2017 by 94% as compare to 2016 because most
of the items of stores and spare parts are of interchangeable nature and can be used as machine
spares or consumed as stores. Accordingly, it is not practicable to distinguish stores from spare
parts until their actual usage. Stores and spare parts include items which may result in fixed capital
expenditure but are not distinguishable.

CURRENT ASSETS 2017 2016

Stock-in-trade 575,197,025 445,186,665

Reason:
The value of stock in trade is increased in 2017 by 29% as compare to 2016 due to increase raw
material with 470,370,353 and Finished goods with 62,299,584.

CURRENT ASSETS 2017 2016

1,191,625,522 963,552,761
Trade debts - unsecured

Reason:
The value of trade debts unsecured in 2017 by 24% as compare to 2016 because it is Includes an
amount of Rs 116.476 million (2016: Rs 105.450 million) due from Roshan Enterprises, a related
party (Associated undertaking).

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 CURRENT ASSETS 2017 2016

2,034,351,096 277,395,576
Cash and bank balances

Reason:
The value of cash and bank balance in 2017 by 633% as compare to 2016 due to Profit on the
balances in saving accounts ranges from 5.6% to 6.5% (2016: 5.0% to 7.5%) per annum.and due
to Profit on term deposits ranges from 5.6% to 6.25% per annum.

PROFIT AND LOSS ACCOUNT

2017 2016

Sales 4,098,007,176 3,621,881,861

Reason:
Sales increase 13% in 2017 because of the less sale tax and less discount and commission charged.

Cost of good sale 2017 2016

2,964,714,608 2,635,566,941

Reason:
Cost of goods sold increase 14% because of the consumption of raw material increase in 2017.

Gross profit 2017 2016

2,964,714,608 2,635,566,941

Reason:
Gross profit increase because of the increase in sales and less tax charge in 2017.

Administrative expenses 2017 2016

(99,757,283) (79,462,254)

Reason:
Administrative expense increase with 26% in 2017 because of the increase in wages, stationery
expense and rent increase in 2017 because of the expansion in business.

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 Other expenses 2017 2016
(32,813,009) (37,512,627)

Reason:
Other expense decrease with 13% because company didn’t donate and lessened Workers’ profit
participation fund in the 2017 which causes other expenses decrease in 2017.

Other Income 2017 2016

42,774,384 2,155,260

Reason:
Other income increase with approximately 19% because of the profit gain from the banks deposit
that was 30,315,529 in 2017.

Finance cost 2017 2016

106,574,401 45,719,545

Reason:

Finance cost increase in 2017 with 133% because of the increase in long term and short term
borrowing as compare to the amount of 2016.
Taxation 2017 2016
16,657,847 20,500,617

Reason:
Taxation decrease in 2017 because of amendments introduced through Finance Act 2017, the
provisions of section 5A of the Income Tax Ordinance, 2001, have been amended to the effect that
a listed company that derives profit for a tax year but does not distribute at least 40% of its after
tax profits within six months of the end of the said tax year through cash or bonus shares, shall be
liable to pay tax at the rate of 7.5% of its accounting profit before tax. Liability in respect of such
income tax, if any, is recognized when the prescribed time period for distribution of dividend
expires.

Earnings per share - basic and diluted 2017 2016

2.77 3.49

Reason:

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Earnings per share decrease with 20.6% in 2017 as compare to 2016 because net profit for the year
2017 of the parent company in decreased by 8.46%.

Ratio Analysis

Current Ratio = Current Assets / Current Liabilities

Quick Assets Test = Current Assets - Inventories/Current Liability
Debt per Equity = Total Debt/Shareholder Equity
Total Assets Turnover = Net Sales/Total Assets
Net Profit Margin = Net Profit after Tax/Net Sales
Return on Investment = Net Profit after Tax/Total Assets
Return on Equity Total Assets = Net Profit after Tax/Shareholder Equity
Debt to Total Assets = Total Debt/Total Assets
Interest Coverage = EBIT/Interest Expense
Receivable Turnover = Annual Net Credit Sales/Receivables
Receivable Turnover in Days = 365/Receivable Turnover
Inventory Turnover = CGS/Inventory
Inventory Turnover in A Days = 365/Inventory Turnover
Gross Profit Margin = Gross Profit/Sales*100

Items 2017 2016 2015

Current ratio 2.32 1.30 1.24
Quick assets test 1.973 0.99 0.79
Debt per equity 0.54 1.58 0.42
Total assets turnover 0.477 0.668 1.250
Net profit margin 0.583 0.072 0.371
Return on 0.278 0.482 0.464
investment
Return on equity 0.159 0.522 0.265
Debt to total assets 0.094 0.146 0.074
Interest coverage 3.444 7.669 4.149
Receivable turnover 2.247 2.719 3.62
Receivable turnover 162.43 134.24 100.82
in days
Inventory turnover 0.057 0.0046 0.0363
Inventory turnover 6403.56 79347.82 10055.09
in days
Gross profit margin 13.49 14.207 10.70

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Conclusion
Roshan Packages is one of the well renowned company working in a packaging sector in Pakistan.
It’s working environment and the management style, the policies & decentralized decision making
environment is really remarkable. This report is basically an attempt to know the company closely
and to identify the areas which need to be improved. In this era of technology, the “Information”
is the key to success in the business. This means for the successful business one must have the
right information at the right time. This comment leads to the conclusion that the new technology
can add more value to company and can. The overall analysis is indicating that the company’s
progress has mainly attained through dedication of higher management and employees. The
effectiveness of its management, their willingness to take advantage of opportunities and face
challenges of changing economic picture, this all contributes to the very much improved and sound
position of company. This is really appreciable for the devotion and hard work of all the employees
of the Roshan Packages.

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References:
Roshan Packages official website

https://www.roshanpackages.com.pk/

Rozee page of Roshan Packages

https://www.rozee.pk/company/roshan-packages-pvt-ltd-1
Publication
 http://www.pitad.org.pk/Publications/26Pakistan%20India%20Trade%20Liberalization%20Sectoral%20St
udy%20on%20Paper%20and%20Paperboard%20Industry.pdf
 https://bit.ly/2LjW7lz
 Link: Century paper Mills. (2009). Annual Report. Karachi: Century Paper Mills.

 Convention on Biological Diversity www.cbd.int/countries/profile/?country=pk

 http://dawn.com/2012/09/18/stora-enso-to-set-up-paperboard-jv-in-pakistan/
 http://business.highbeam.com/industry-reports/wood/paper-mills
 http://www.scribd.com/doc/36021911/Paper-and-Board-Industry-Report
http://www.dailytimes.com.pk/default.asp?page=2010%5C04%5C16%5Cstory_16-4-2010_pg5_4 14

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