makro

Accounting Financial Info. System 2011

2011

MAKRO

Annual Report

Presented to: Samina Riaz

Group Members:

Jazib Soofi 10157

Usman Irfan 10899

Hiba Khan 9945


ACKNOWLEDGEMENTWe would like to Thank Miss. Samina Riaz for giving us this opurtunity to work on this report and implement all the knowledge that was provided to us throughout

the semester.

Also we would like to thank Makro department who helped us by providing us with all the necessary information to complete this annual report.


If you manage a Hotel, a Restaurant, a Canteen or a Catering Service and have queries about our services to your business, please visit any of our Stores and ask to see our Customer-Development Manager. Our CDMs are equipped with all the information pertaining to your business needs.

Please remember, Makro Wholesale Stores are your one-stop-shops for farm-fresh Fruits, Vegetables, Meat, Fish and Poultry. Our assortment in Frozen and Processed Foods take care of everything you need in ready-to-cook sea food, vegetables, fruit pulps, dairy-products, ice-creams , jams, jellies, sauces and so on.

Our Makro Mail will be your guide to our special promotions in the next two weeks. Click on the icons on your right and check each individual food and non-food promotion available at each of our Stores.

To save time on bulk purchases, call in your order at any Makro Store and it will be packed and ready at the cash counter waiting for you, at the time of your convenience.


Makro is a leading chain of wholesale centres with outlets in several countries of Asia and South America. The mission statement of Makro is the distribution of products with excellence in price, quality and variety to professional customers, and so offering the customer advantages and opportunities of growth.

Makro is an important link in the producer’s distribution chain, especially to the small professional customer to whom direct delivery is becoming less and less economically viable. Makro supports energy saving initiatives and investments in the construction of its stores and stimulates staff to be efficient in the use of energy and water, separating waste and saving electricity.

Makro is a cash & carry wholesale company, with stores ranging in size from 4,000m2 to 12,000m2 offering food and non-food products to professional customers. These customers include small and medium sized independent retailers, institutional customers like schools and hospitals and all varieties of professionals involved in the catering sector. Makro’s customers are themselves mainly service providers requiring quality products, consistency in supply and availability as well as competitive prices. We endeavor therefore to provide excellent customer service with the aim of developing long-term mutually beneficial relationships with our client base.


The House of HabibHouse of Habib is the business house of the Mohammedali Habib Family.Mohammedali Habib, a man of vision and exceptional leadership together with his brothers was the architect and builder of the Group which includes Habib Metropolitan Bank and Habib Insurance Co. Ltd., established in 1941 and 1942 respectively. Today, HOH employs over 10,000 people who work to provide an array of products and services in Pakistan. These activities range from automobiles to audio media, buildings to banking and computers to chemicals. Managing a network of public and private companies, the House of Habib has equity and technical collaborations with British, Japanese and Norwegian companies.House of Habib despite its conservative and traditional values places great emphasis on decentralized professional management that has resulted in a progressive and dynamic organization.

Makro-Habib Pakistan LtdMakro-Habib demonstrated a commitment to grow in Pakistan by entering the wholesale sector and with plans to invest around USD 300 mn in the next four years.Pakistan’s wholesale sector has been a grossly neglected segment of the economy; Makro pioneered into its age old customs and led the change by introducing modern and transparent rules of trade. Makro has also brought the latest technology and techniques to preserve and enhance the life of fresh farm produce. This will not only benefit the farmer but also the common man.

Each Makro Wholesale Centre provides direct employment to 200 people, and brings in countless business transactions into the documented part of the


economy, which is a significant step towards complimenting Governments’ efforts.

Makro-Habib is for the benefit of the people. Its controlled prices, guaranteed quality and an extensive product range of food and non-food products brings a novel shopping experience to the professional customers in Pakistan. Makro caters equally to all socio-economic segments of the society with special emphasis on small and medium sized retailers, hotels, restaurants, catering services and many other business establishments. Makro’s professional customers will find all their needs under one roof.

Fruits & Vegetables

Dairy & Frozen


Meat & Poultry

Fish & Sea Food

Bakery


Basic Commodities

Confectionery


Drinks & Beverages

Dry Grocery

Home & Personal Care


Electronics

Office & Stationary

Househould & Kitchenwar

Apparel, Sports Wear, Shoes, Bed Linen, etc.


Do It Yourself

Toys, Luggage

Accessories


All financial transactions in Makro are part of the documented sector hence customers can claim input sales tax on their purchases

Facility to purchase most of your business needs from one source

Fresh Food Dry Grocery andNon Food items

Makro stocks over 25,000 quality food & non-food items and keeps adding to the range meet respective needs of its customers

Secure and convenient payment options available

Consolidated purchasing solution which saves time and gives control over leakages / pilferage

Banking facilities available at all Makro outlets: Habib-Metropolitan, MCB (ATMs for many other banks)

Hygienic & high quality products

Price and quantities guaranteed (A Kg is always a Kg at Makro)


Makro Stores are open 7 days a week from 8:00 AM – 12:00 PM

Makro provides purchase solution for:Employee Canteen / Cafeteria

Fair Price Shop

Office equipment & stationery

General office supplies: tea, coffee, drinks, tissues, cleaning items etc.

Tools & maintenance requirements


All financial transactions in Makro are part of the documented sector hence customers can claim input sales tax on their purchases


Alternate Payment Options for Bulk Purchases

If you are a business concern that buys its need in bulk, get in touch with our Customer Development Department, stationed at each Store for your options of payment.Following non-cash options are available for purchases at all Makro Centres.

Debit CardDebit card is the most convenient & safe payment option. For safety and security a separate account may be opened at Habib Metropolitan Ban or MCB, which will insure the funds are available and controlled in a separate account for Makro purchase.

Credit Card Makro accepts payment through credit cards with a bank charge of 1.73%

Advance On CreditGoods can be purchased against the exact amount deposited at Makro Centres.

Bank GuaranteeCredit is available against a bank guarantee provide by the customer to Makro Centres.


FINANCIAL STATEMENTS OF MAKRO

INCOME STATEMENT :

Period Ending Apr 30, 2010 Apr 30, 2009 Apr 30, 2008

Total Revenue 4,637,087 4,690,525 4,827,087

Cost of Revenue 3,844,735 3,966,919 4,141,078

Gross Profit 792,352 723,606 686,009

Operating Expenses

Research Development - - -

Selling General and Administrative 526,291 504,449 474,555

Non Recurring - - -

Others 73,546 69,451 67,607

Total Operating Expenses - - -

Operating Income or Loss 192,515 149,706 143,847

Income from Continuing Operations


Total Other Income/Expenses Net - - -

Earnings Before Interest And Taxes 181,582 139,080 143,847

Interest Expense - 10,626 9,792

Income Before Tax 181,582 139,080 134,055

Income Tax Expense 64,620 53,390 49,051

Minority Interest - - -

Net Income From Continuing Ops 116,962 85,690 85,004

Non-recurring Events

Discontinued Operations - (54) (113)

Extraordinary Items - - -

Effect Of Accounting Changes - - -

Other Items - - -

Net Income 116,962 85,690 84,891

Preferred Stock And Other Adjustments - - -

Net Income Applicable To Common Shares 116,962 85,690 84,891


BALANCE SHEET :

Period Ending Jan 31, 2011 Oct 31, 2010 Jul 31, 2010 Apr 30, 2010

Assets

Current Assets

Cash And Cash Equivalents 64,446 188,267 198,099 151,676

Short Term Investments - - - -

Net Receivables 63,766 36,731 23,230 32,329

Inventory 134,721 122,348 123,274 124,951

Other Current Assets 1,578 1,739 2,433 1,307

Total Current Assets 264,511 349,085 347,036 310,263

Long Term Investments - - - -

Property Plant and Equipment 1,171,586 1,075,364 1,030,517 1,010,911

Goodwill 86,422 68,260 57,627 57,547

Intangible Assets - - - -

Accumulated Amortization - - - -

Other Assets 11,736 10,794 11,271 10,054

Deferred Long Term Asset Charges - - - -

Total Assets 1,534,255 1,503,503 1,446,451 1,388,775

Liabilities

Current Liabilities

Accounts Payable 247,245 254,713 253,242 204,328

Short/Current Long Term Debt 10,319 5,274 55,519 24,577

Other Current Liabilities - - - 11,981

Total Current Liabilities 257,564 259,987 308,761 240,886

Long Term Debt 678,864 679,159 109,853 154,754


Other Liabilities 16,508 15,887 15,467 14,799

Deferred Long Term Liability Charges 196,150 171,749 153,910 154,017

Minority Interest - - - -

Negative Goodwill - - - -

Total Liabilities 1,149,086 1,126,782 587,991 564,456

Stockholders' Equity

Misc Stocks Options Warrants - - - -

Redeemable Preferred Stock - - - -

Preferred Stock - - - -

Common Stock 2,913 2,216 66,391 64,439

Retained Earnings 382,256 374,505 792,069 759,880

Treasury Stock - - - -

Capital Surplus - - - -

Other Stockholder Equity - - - -

Total Stockholder Equity 385,169 376,721 858,460 824,319

Net Tangible Assets 298,747 308,461 800,833 766,772

makro

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accounting

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documented

separate account

samina riaz

food items

makro centres