accounting final project

7/31/2019 Accounting Final Project

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INTRODUCTION OF PROJECT

This project is written on the descriptive analysis of shezan international

limited. And provides information about the following aspects related to company as

under;

1. Introduction of shezan international limited

2. Companys Chairmans review

3. Industry Review

4. Descriptions of:

a. Assets

b. Depreciation

c. Liabilitiesd. Equity and Retained Earnings

e. Cash Flow statement

f. Inventories

g. Taxation

5. Attachments of:

a. Income Statements

b. Balance Sheet

c. Cash Flow Statement

d. Form of Proxy

e. Pattern of Shareholding of Shareholders

f. Pattern of Shareholding as per requirements of Code of Corporate

Governance


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COMPANY INTRODUCTIONThe company was incorporated on may 30 1964 as a private limited concern and

initially conceived as a joint venture with alliance industrial development corporation of

USA for processing citrus and fruits as well as bottling of juices. In 1971 shahnawaz

group purchased all the shares of alliance industrial development corporation with the

permission of Pakistan government and form a joint venture company it became a fullyPakistani owned company. The company has shown sustained growth in both the

domestic and export fields. The company has been steadily expanding its production

capacity over the years. In 1980-81 a separate unit was installed in Karachi, which now

caters for Karachi, Sind and export demand. A new bottling filling plant was set up in

1983 in the Lahore unit increasing the capacity five-flod. An independent tetra brick

plant was commissioned in 1987 making the unit leading manufacturers with

comprehensive range of production in fruit-processing field in Pakistan. The company

is engaged in manufacture and sale of juices, beverage, pickles, preserves and

flavorings based upon or derived from fresh fruits and vegetables.

VISION

To be known as leader of quality products in the region.

Dedication to quality is a way of life at our company, so much so that it goes far

beyond rhetorical slogans. It is the objective of shezan international limited to produce

and provide products and services of the highest quality. In its activities the company

will pursue goals aimed at the achievement of quality excellence and succeed as a

profitable business. These results will be derived from the dedicated efforts of each

employee in conjunction with supportive participation from management at all levels of

the company.

MISSION

Our mission is to provide the highest quality fruit and vegetable related juices

and products to retail and food service customers.

We want to be the recognize industry leader in quality and service, providing

more than expected for our customers, employees and stakeholders.

We will accomplish this by maintaining a tradition of pride in our products,

growth through innovation, integrity in the management of our business, and

commitment to Team Management and the Quality Improvement Process.

OBJECTIVES

The organization is interested in providing the quality products at lower price,

and attaining the highest levels of performance and generally in meeting the interested

group requirements set out. The objectives of the organization include:

1) CREDIBILITY

In the whole of society, there is a need for credibility in information and

information systems.

2) PROFESSIONALISM


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The customers, employees and other interested parties can rely on the

professionalism of the organization.

3) QUALITY OF SERVICE

There is a need for assurance that all services provided are carried out to thehighest standards of performance.

4) CONFIDENCE

Interested groups should be able to feel confident that there exists a framework

of professional ethics, which governs the provision of services provided by the

organization to the community and the country.

All the above stated objects are the need of the company. Shezan international

limited is the organization that will work on the desired objectives and will attain the

status that it desires in the industry of juices.

CHAIRMANS REVIEW:Mr. MUHAMMAD KHALID said We are thankful to the valuable consumers for their

continuous loyalties to our products, the shareholders for their trust and confidence in

us, and place on record our appreciation for the commitment, devotion to duty and hard

work of the officers and workers of all categories.

INDUSTRY REVIEW

Pakistan is blessed with a climate ideally suited to the farming of all kinds of fruit rich

in taste and flavor; sweet; mellow and juicy. For centuries Pakistani farmers have been

developing newer strains of fruit by grafting one exotic variety with another. Shezan is

the largest processor of fresh fruits and vegetables in the country. The fruits processed

by them come both from their own prize winning fruit farms and other selected

orchards. Natures goodness is meticulously preserved by shezan. The processing is

carried out by qualified food technologists in shezans ultra modern plants at Karachi

,Lahore and hattar.

COMPANY PROFILEBoard of Directors:

Mr. Muneer Nawaz Chairman

Mr. Saifi Chaudhry Chief Executive

Mr. Mahmood Nawaz Director

Mr. C.M. Khalid -do-

Mr. Amtul Hai Khalid -do-

Mr. M. Naeem -do-

Mr. Muhammad Khalid -do-


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Mr. Shamshad Ahmad N.I.T Nominee

Mr. Muhammad Asif N.I.T Nominee

Director & Company Secretary:

Mr. Muhammad Khalid

Chief Financial Officer

Mr. Faisl Ahmad Nisar, FCA

Audit Committee

Mr. Muneer Nawaz Chairman

Mr. Muhammad Khalid Member

Mr.Muhammad Asif Member

Auditors

Messrs. Ford Rhodes Sidat Hyder & Co.

Chartered Accountants,

Mall View Building,

4- Bank Square, Lahore.

Bankers:

United Bank Limited

Muslim Commercial Bank Limited

National Bank of Pakistan

The Bank of Khyber

Habib Bank Limited

Bank Al-Habib Limited

Head Office:

56- Bund Road Lahore-54500

Phone: (92) 042-7466900-04

Faxes: (92) 042-7466899 & 7466895

Email:[email protected]

Website: www.shezan.com

Factories

1) 56- Bund Road,

Lahore-54500
mailto:[email protected]:[email protected]://www.shezan.com/mailto:[email protected]://www.shezan.com/


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Phone: (92) 042-7466900-04

Faxes: (92) 042-7466899 & 7466895


2) Plot No. L-9 Block No. 22,

Federal B, Industrial Area,

Karachi -75950

Phones:(021)6344722-23.

Faxes: (021)6313790.

Email: [email protected]

3) Plot No. 33-34, Phase III,

Hattar Industries Estate,

Hattar.

Phones:(0995) 617158 & 617343

Faxes:(0995) 617342.


Share Registrar:

Messrs. Corp Link (Private) Limited,

Wings Arcade, 1-K, Commercial,

Model Town, Lahore.

Legal Advisor:

Messrs. Cornelius, Lane & Mufti.

Nawa-e-Waqt Building,

Shahrah-e-Fatima Jinnah, Lahore.

MEETINGS
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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During the year 2008-09, five board meetings were held which were attended as

follows:

Mr. Muneer Nawaz Chairman/Chief Executive 4

Mr. Saifi Chaudhry Nominee of NIT LTD 4

Sh. Mahmood Nawaz Director 3

Mr. Amtul Hai Khalid -do- -

Mr. M. Naeem -do- 2

Mr. C. M. Khalid -do- 2

Mr. Muhammad Khalid -do- 5

Mr. Muhammad Nawaz Tishna -do- 1

Mr. Muhammad Asif -do- 5

Mr. Shamshad Ahmad -do- 3

DESCRIPTIVE ANALYSIS

ASSETS OF COMPANY

NON-CURRENT ASSETS:-

Shezan international limited owns the following Fixed Assets.

Freehold land

Leasehold land

Buildings on freehold land

Buildings on leasehold land

Plant and machinery

Furniture and fixture

Moter vehicles and bicycle

Electric fittings and tools

Electric equipment

Laboratory equipment


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Frok lifts

Computers and accessories

Arms and ammunitions

Investment in associate

investment available for sale

long term deposits and prepayments

DESCRIPTIONS:

Shezan international limited have freehold land of amounted

Rs.37,098,000. We dont charge any depreciation on land as it is an appreciable asset.

We have posses leasehold land of RS.1,802,000. And charge no deprication on land

because it is appreable asset.We posses building on freehold land amounted Rs.

8,208,000 after charging depreciation @ 10%. We posses building on leasehold land

amounted Rs.8,947,000 after charging depreciation @ 10%.We owned plant

&machinery amounted Rs.142,496,000 after charging deprication @ 12.5%.. we have

furniture &fixtures amounted RS.482,000 after charging deprication @ 15%. We have

motor vehicles and bicycles of amounted RS.44,246,000.after charging deprication@20%. We have electic fittings and tools amounted RS.1,952,000 after charging

deprication 10-25%. We have electric equipment amounted RS.17,827,000 after

charging deprication@ 15%. We have laboratory equipment of Rs.745,000 after

charging depreciation @ 10%. We have frok lifts amounted RS.9,105,000 after

charging deprication @ 20%.we have computer and accessories amounted

RS.2,608,000 after charging 33.33%deprication. We have arms & ammunitions of

amounted RS.4,000 after charging deprication @20%. Plant & machinery of Rs.

27,800,000 after charging depreciation @ 12.5%. Vehicles amounted Rs. 808,000

after charging depreciation @ 20%. Deprication is charged at reducing balance

method

CAPITAL WORK IN PROGRESS:-


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The opening balance of capital work in progress is amounted

Rs. 7,706,000. Additions during the year amounted Rs 19,591,000. And transferred to

operating property, plant and equipment is RS.15,486,000 .So the ending work in

progress is 4,105,000.

LONG TERM DEPOSITS:-

The lease companies amounted RS.0.and others amounted

RS.2,661,000.SO the long term deposits are RS.2,661,000. Which was for RS.2603,000

in 2008.

CURRENT ASSSETS

Our company owns following current assets.

Stores, spare parts

Stock in trade

Trade debts

Advances ,deposits, prepayments and other receivables

Income tax recoverable

Cash and bank balances

DISCRIPTIONS The stores of the company are Rs.8,841,000. And the spare parts

amounted Rs. 9,955,000 and total amounted of RS.18,796,000 for the year 2009 which

was RS.1,091,000 in the year 2008. Trade debts of the company are RS 86,291,000 for

the year 2009 and that was amounted RS 74,892,000 in 2008. Advances to different

parties and employees are amounted Rs. 14,633,000. Short term Trade deposits for the

year 2009 are RS. 7194,000 and short term prepayments totaled Rs. 12,730,000 for the

year 2009. Accrued profit for the year 2009 is RS.81,000. Advance excise duty for the

year is RS. 372,000. Wealth tax recoverable for the year amounted RS.140,000. Sales

tax refundable for the year amounted RS.1,963,000. And the income tax recoverble by

the company totaled Rs. 74,651,000 and for that was RS.114,255,000 in the previous

year . Cash and bank balances of the company are RS.70,844,000.

DEPRECIATION:-


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Depreciation on property, plant and equipment is charged to

profit and loss account applying the reducing balance method so as to write off the cost/

depreciable amount of the assets over their estimated useful lives. Depreciation on

additions is charged from the month in which the assets were available for use up to the

month in which the assets was disposed off. The residual values and useful lives are

reviewed by the management, at each financial year-end and adjusted if impact on

depreciation is significant.

LIABILITIES OF THE COMPANY

NON-CURRENT LIABILITIES

Liabilities against assets subject to finance lease.

Deferred taxation

DESCREPTIONS:-

The liabilities in 2009 was Rs. 543,000 and these was Rs. 4,429,000 for previous year

2008 and the interest rate used as the discounting factor ranges from 12.12% to 18.15%

(2008;12.12% to 13.25%) per annum. Minimum lease payments for year 2009 is Rs.

4,695,000 and their present value Rs. 4,412,000 and in 2008 minimum lease payment

were Rs. 29,905,000 and their present value were Rs. 27,817,000. The deferred

taxation for the year 2009 totaled Rs.45,419,000 and these were Rs. 47,429,000 .

CURRENT LIABILTIES:-

Trade and other payables

Accrued markup on Short term borrowings.

Short term borrowings secured

Current portion of liabilities against assets subject to finance lease

Provision for taxation

DESCREPTIONS:-


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The balance of the trade and the other payables for the year 2009 amounted

Rs.392,371,000 for the year 2008 amounted Rs. 338,208,000. Accrued markup of

the company on short term borrowing for the year 2009 Rs. 393,000 and for the

year 2008 amounted Rs. 16,000. Companys short term borrowings secured for the

year 2009 amounted Rs.30, 228,000. The current portion of long term liabilities

against assets subject to finance lease amounted 3,869,000 and for the year 2008

these were amounted Rs. 23,388,000. The provision for taxation amounted to

Rs.103,742,000 and provision for taxation for the year 2008 amounted Rs.

157,885,000.

EQUITY AND RETAINED EARNINGS:-

SHARE CAPITAL AND RESERVES:-

The authorized number of

shares 10,000,000 shares @ Rs. 10/- each amounted Rs.100, 000,000. Issued ,

subscribed and paid up capital Rs.60,000,000. The capital reserves amounted

Rs.5,000,000 and general reserves amounted Rs. 580,000,000 and that was Rs.

495,000,000 in previous year. and unappropriated profits for the year 2009

amounted Rs. 45,962,000 that was amounted Rs. 51,858,000.

CASH FLOWS:-

Cash from operating activities

Cash from investing activities

Cash from financing activities

DESCRIPTIONS:-

In year 2009 the cash flow from different operating activities totaled

Rs.113,454,000 and that was Rs. 119,039,000 in 2008. The cash used by the

company from investing activities are of Rs.(43,338,000) that was amounted Rs.

(54,104,000) in 2008. The net cash used in financing activities are of Rs.

(83,314,000) that was used in 2008 amounted Rs.(89,079,000). Net decrease in cash

and cash equivalents for the year 2009 are of Rs. (13,198,000). The opening cash


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and cash of the year are of Rs.84,042,000. The total cash and cash equivalents at the

end of the year 2009 amounted Rs.70,844,000.

INVENTORY:-

As stated in under the head of Current Assets, Raw Material

showed the balance of Rs. 73,822,000. Which was showing the balance of Rs.

39,740,000 in the year 2008. Work in Progress had a value amounting to Rs.

4,105,000. Finished Goods inventory showed the balance of Rs. 84,467,000 in the

year 2009 and amounted Rs. 46,593,000.

Taxation

Provision of current taxation for the year 2009 amounted Rs.103,742,000 and for

the previous year that amount was Rs.157,885,000 and amount paid in the form of

tax for the year 2009 amounted RS.58,099,000 that was Rs.107,195,000 in 2008.

CORPORATE GOVERNANCE

As required by the code of corporate governance, the board of directors hereby

declares that:

1) The Financial Statements for the year ended June 30, 2009 present fairly the

state of affairs, the result of its operations, cash flows and changes in equity.

2) Proper Books of Accounts have been maintained.

3) Appropriate Accounting Policies have been consistently applied in

preparation of Financial Statements for the period ended on June 30, 2009.

4) International Accounting Standards (IAS) as applicable in Pakistan, have

been followed in preparation of Financial Statements.

5) Internal Control is sound and has been effectively implemented.

6) There is no doubt about the company to continue as going concern.


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ATTACHMENTS

1) INCOME STATEMENT

2) BALANCE SHEET

3) CASH FLOW STATEMENT

4) FORM OF PROXY

5) PATTERN OF SHAREHOLDING OF SHAREHOLDERS

6) PATTERN OF SHAREHOLDING AS PER REQUIREMENTS OF

CODE OF CORPORATE GOVERNANCE

accounting final project

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