Table of Contents TOC o “1-3” h z u Executive Summary PAGEREF _Toc526275148 h 5Pepsi Co International PAGEREF _Toc526275149 h 6Shamim and Company PAGEREF _Toc526275150 h 7Vision Statement PAGEREF _Toc526275151 h 7Mission Statement PAGEREF _Toc526275152 h 8Management of Shamim and Company PAGEREF _Toc526275153 h 8Marketing Mix PAGEREF _Toc526275154 h 9Products PAGEREF _Toc526275155 h 9Price PAGEREF _Toc526275156 h 9Place PAGEREF _Toc526275157 h 10Promotion PAGEREF _Toc526275158 h 11My Activities in Human Resource Department PAGEREF _Toc526275159 h 11Recruitment and Selection PAGEREF _Toc526275160 h 11Employees Training PAGEREF _Toc526275161 h 12Performance Appraisal PAGEREF _Toc526275162 h 12Rewarding PAGEREF _Toc526275163 h 12Compensation and Benefits PAGEREF _Toc526275164 h 12My Activities in Audit Department PAGEREF _Toc526275165 h 13Reports in Audit Department PAGEREF _Toc526275166 h 13Internal Audit PAGEREF _Toc526275167 h 14External Audit PAGEREF _Toc526275168 h 14My Activities in Accounts and Coordination Department PAGEREF _Toc526275169 h 15My Activities in Management Accounts Department PAGEREF _Toc526275170 h 16List of Major Suppliers PAGEREF _Toc526275171 h 16Reports PAGEREF _Toc526275172 h 16My Activities in Banking and Insurance Department PAGEREF _Toc526275173 h 17The Process of Insurance PAGEREF _Toc526275174 h 17Leasing Activities PAGEREF _Toc526275175 h 18Letter of Credit PAGEREF _Toc526275176 h 18Cover Note PAGEREF _Toc526275177 h 18Competitor Analysis PAGEREF _Toc526275178 h 18Coke vs Pepsi PAGEREF _Toc526275179 h 18Gourmet vs Pepsi PAGEREF _Toc526275180 h 19Financial Statements PAGEREF _Toc526275181 h 19INCOME STATEMENT PAGEREF _Toc526275182 h 19Statement of Cash Flows PAGEREF _Toc526275183 h 20Balance Sheet PAGEREF _Toc526275184 h 21RATIO ANALYSIS PAGEREF _Toc526275185 h 22LIQUIDITY RATIOS PAGEREF _Toc526275186 h 22Current Ratio PAGEREF _Toc526275187 h 22Quick Ratio/ Acid Test Ratio PAGEREF _Toc526275188 h 22Cash Ratio PAGEREF _Toc526275189 h 23Liquidity Performance PAGEREF _Toc526275190 h 24ACTIVITY RATIOS PAGEREF _Toc526275191 h 24Receivable Turnover Ratio PAGEREF _Toc526275192 h 24Days Sales in Receivables PAGEREF _Toc526275193 h 24Inventory Turnover PAGEREF _Toc526275194 h 25Days Sales in Inventory PAGEREF _Toc526275195 h 25Operating Cycle PAGEREF _Toc526275196 h 25Operating Performance PAGEREF _Toc526275197 h 26DEBT RATIOS PAGEREF _Toc526275198 h 26Times Interest Earned Ratio PAGEREF _Toc526275199 h 26Debt Ratio PAGEREF _Toc526275200 h 26Debt to Equity Ratio PAGEREF _Toc526275201 h 27Debt Performance PAGEREF _Toc526275202 h 27PROFITABILITY RATIOS PAGEREF _Toc526275203 h 27Net Profit Margin PAGEREF _Toc526275204 h 27Return on Assets PAGEREF _Toc526275205 h 28Gross Profit Margin PAGEREF _Toc526275206 h 28Profitability Performance PAGEREF _Toc526275207 h 28Horizontal Analysis PAGEREF _Toc526275208 h 28Income Statement PAGEREF _Toc526275209 h 31Cold Assets Department PAGEREF _Toc526275210 h 32My weekly activity in Cold Asset department PAGEREF _Toc526275211 h 34SWOT Analysis PAGEREF _Toc526275212 h 34PEST Analysis PAGEREF _Toc526275213 h 36Conclusion PAGEREF _Toc526275214 h 37Comments PAGEREF _Toc526275215 h 38References PAGEREF _Toc526275216 h 38 Acknowledgement All praise to ALLAH Almighty the lord of Worlds

Table of Contents
TOC o “1-3” h z u Executive Summary PAGEREF _Toc526275148 h 5Pepsi Co International PAGEREF _Toc526275149 h 6Shamim and Company PAGEREF _Toc526275150 h 7Vision Statement PAGEREF _Toc526275151 h 7Mission Statement PAGEREF _Toc526275152 h 8Management of Shamim and Company PAGEREF _Toc526275153 h 8Marketing Mix PAGEREF _Toc526275154 h 9Products PAGEREF _Toc526275155 h 9Price PAGEREF _Toc526275156 h 9Place PAGEREF _Toc526275157 h 10Promotion PAGEREF _Toc526275158 h 11My Activities in Human Resource Department PAGEREF _Toc526275159 h 11Recruitment and Selection PAGEREF _Toc526275160 h 11Employees Training PAGEREF _Toc526275161 h 12Performance Appraisal PAGEREF _Toc526275162 h 12Rewarding PAGEREF _Toc526275163 h 12Compensation and Benefits PAGEREF _Toc526275164 h 12My Activities in Audit Department PAGEREF _Toc526275165 h 13Reports in Audit Department PAGEREF _Toc526275166 h 13Internal Audit PAGEREF _Toc526275167 h 14External Audit PAGEREF _Toc526275168 h 14My Activities in Accounts and Coordination Department PAGEREF _Toc526275169 h 15My Activities in Management Accounts Department PAGEREF _Toc526275170 h 16List of Major Suppliers PAGEREF _Toc526275171 h 16Reports PAGEREF _Toc526275172 h 16My Activities in Banking and Insurance Department PAGEREF _Toc526275173 h 17The Process of Insurance PAGEREF _Toc526275174 h 17Leasing Activities PAGEREF _Toc526275175 h 18Letter of Credit PAGEREF _Toc526275176 h 18Cover Note PAGEREF _Toc526275177 h 18Competitor Analysis PAGEREF _Toc526275178 h 18Coke vs Pepsi PAGEREF _Toc526275179 h 18Gourmet vs Pepsi PAGEREF _Toc526275180 h 19Financial Statements PAGEREF _Toc526275181 h 19INCOME STATEMENT PAGEREF _Toc526275182 h 19Statement of Cash Flows PAGEREF _Toc526275183 h 20Balance Sheet PAGEREF _Toc526275184 h 21RATIO ANALYSIS PAGEREF _Toc526275185 h 22LIQUIDITY RATIOS PAGEREF _Toc526275186 h 22Current Ratio PAGEREF _Toc526275187 h 22Quick Ratio/ Acid Test Ratio PAGEREF _Toc526275188 h 22Cash Ratio PAGEREF _Toc526275189 h 23Liquidity Performance PAGEREF _Toc526275190 h 24ACTIVITY RATIOS PAGEREF _Toc526275191 h 24Receivable Turnover Ratio PAGEREF _Toc526275192 h 24Days Sales in Receivables PAGEREF _Toc526275193 h 24Inventory Turnover PAGEREF _Toc526275194 h 25Days Sales in Inventory PAGEREF _Toc526275195 h 25Operating Cycle PAGEREF _Toc526275196 h 25Operating Performance PAGEREF _Toc526275197 h 26DEBT RATIOS PAGEREF _Toc526275198 h 26Times Interest Earned Ratio PAGEREF _Toc526275199 h 26Debt Ratio PAGEREF _Toc526275200 h 26Debt to Equity Ratio PAGEREF _Toc526275201 h 27Debt Performance PAGEREF _Toc526275202 h 27PROFITABILITY RATIOS PAGEREF _Toc526275203 h 27Net Profit Margin PAGEREF _Toc526275204 h 27Return on Assets PAGEREF _Toc526275205 h 28Gross Profit Margin PAGEREF _Toc526275206 h 28Profitability Performance PAGEREF _Toc526275207 h 28Horizontal Analysis PAGEREF _Toc526275208 h 28Income Statement PAGEREF _Toc526275209 h 31Cold Assets Department PAGEREF _Toc526275210 h 32My weekly activity in Cold Asset department PAGEREF _Toc526275211 h 34SWOT Analysis PAGEREF _Toc526275212 h 34PEST Analysis PAGEREF _Toc526275213 h 36Conclusion PAGEREF _Toc526275214 h 37Comments PAGEREF _Toc526275215 h 38References PAGEREF _Toc526275216 h 38
Acknowledgement
All praise to ALLAH Almighty the lord of Worlds. In the former and the latter, praises be to the ALLAH Almighty, the creator of the heaven and the earth.
Glory and praise to be ALLAH Almighty, who created the man, taught him the utterance, honored the human being and perfected him above many of the creatures with marked performance. Glory and praise to be ALLAH Almighty in His beloved way till He become well pleased, who created and bestowed us countless potentials, talents and abilities.

TO
Our beloved parents and respected teachers whose endless support and kindness is beyond expression and words may not just be enough to express
Executive SummaryBeverage business is incredibly well established in the majority components of the globe and therefore the same goes for Asian nation. The key food firms in Asian nation are PepsiCo and Coca Cola. The rising food company in Asian nation is gourmand Cola. PepsiCo and Coca Cola have neck to neck competition in Asian nation, however Coca Cola is in lead internationally. each of those firms have their own ways to fulfill the necessity of the target market.PepsiCo is well putative transnational company, operative in the majority countries within the world. the corporate is registered in the big apple stock market. to form a much better management over the business round the world, the corporate has given the producing rights to bound firms. thus these firms ar manufacturing the product on their behalf by exploitation their trademark.Shamim and Company with success fulfills the necessity of its target customers within the market. It believes within the departmentalization in their work and so they need established completely different departments to attain their individual tasks.There are completely different departments in PepsiCo Multan (Shamim and Company), like human resource department, management accounts department, accounts coordination department, audit and management department, banking and finance department, acquisition department, coaching and development department, store management department, selling department and sales division.Each department is underneath the management of the manager and individual team of assistants. As my space of specialization is finance, thus I visited the departments associated with the finance sector of the corporate at MDA Chowk Multan. The departments associated with the finance sector are, banking and finance department, wherever I met Mr. Afzal. Accounts Coord. Management Accounts department, wherever I meet Mr. Shoaib Tarimzi. Audit department wherever I met Shoaib Tarimzi and Human resource department, wherever I met Mr.Fahad Ahmed.Information associated with sales, purchases, investment and plenty of additional are collected and distributed among all the departments of the corporate, out of that quarterly and annual monetary reports are created once every accounting amount. These monetary reports show the monetary position and performance of the corporate.

Pepsi Co InternationalPepsi may be a effervescent beverage that’s created by Pepsi Cola. The drink was initial created in Nineties by a druggist known as Caleb Brad in North geographical area. The complete was registered as a trademark in 1903. Pepsi Cola was initial introduced as ‘Brad’s Drink’. it absolutely was later named as Pepsi, presumably named once associate protein employed in it as a direction and known as as enzyme. The initial aim of Brad was to supply a drink that aids within the digestion of food. Later Brad affected the bottles from the drug store to the rented ware house. Where ever nearly ,8000 gallons of Pepsi Cola was sold that year. Following year sales hyperbolic to nearly 20000 gallons. the brand was modified to Pepsi Cola in 1905.In 1909, race pioneer Barney previous field the primary celebrity to endorse Pepsi-Cola, describing it as “A bully drink…refreshing, animating, a fine bracer before a race”. The advertising theme “Delicious and Healthful” was then used over following twenty years. In 1926, Pepsi Cola received its initial emblem plan since the first style of 1905.Pepsi Company entered out of business, in giant thanks to monetary losses arising thanks to the unsteady costs of sugar once warfare I. Assets of the corporate were sold and Roy C. Megargel bought the trademark of Pepsi Cola. Once nearly eight years, the corporate went bankrupt once more. Pepsi Cola assets were currently bought by a candy producing company that sold soft fountain drinks at its retail stores.The company was antecedently commerce dope at its stores, however dope refused to present discount on its sweetening, thus the corporate replaced dope by Pepsi. the corporate than reformulated the sweetening formula of Pepsi.On 3 separate occasions between 1922 and 1933, the dope Company was offered the chance to get the Pepsi and it declined on every occasion. In 1965, growth outside the beverage trade began. Frito-Lay of city, Texas, and Pepsi-Cola merged; forming PepsiCo, Inc. Pepsi Company operates in beverages trade. Pepsi international is well purported transnational company that is doing its business in nearly each country of the globe. The corporate is registered in big apple exchange. To make a more robust management over the business the corporate has given the producing rights to totally different corporations. Currently these corporations are manufacturing the product on the behalf of the corporate by victimisation company’s trademark. To take care of their goodwill within the market the corporate incorporates a strict policy of granting producing rights. Pepsi have standardized product everywhere the globe (e.g. same in size, form and quality). The franchises have to be compelled to follow all the standards given by the corporate.The head workplace of PepsiCo international is located in big apple (USA) with totally different units operative in numerous regions of the globe. These are known as the Business Units. The native head offices for every country are located within the several capitals.To maintain their goodwill within the market the corporate incorporates a strict policy whereas granting the producing rights Pepsi-Cola have standardized product everywhere the globe (e.g. same in size, form and quality). The franchises have to be compelled to follow all the standards as given by the corporate. Even they need the mobile team, that check the corporate once a pair of or three months. Either company is manufacturing product in line with the standards given by the Pepsi international.

Shamim and CompanyPepsi Multan commenced its activities in 1967. Allah Nawaz Khan Tareen initially got license for the production of 7up. It was the first plant of PepsiCo in Pakistan. In 1973 it became Pepsi Cola franchise. Now days the managing director of Pepsi Multan is Alamgeer Khan Tareen, who is the son of Allah Nawaz Khan Tareen.

In the early days, there was only one production plant constructed by Netherland and was only producing 7up. Because it was the only brand that was being produced by the parent company at that time. In 1973 the parent company acquired 7up plant in Canada, and since than Pepsi Multan started producing Pepsi and Marinda along with 7up, and became Pepsi franchise. Coke was already operating in the market at the time when Pepsi Multan was established. At that time Coke was the market leader, but with the passage of time Pepsi Multan kept focusing on gaining the market share. Recently Pepsi has launched a new brand with the name of Mountain Dew.
Now Pepsi Multan is working with five production plants capable of producing 100,000 crates per day. Installation arrangements for two new plants are in process, which will increase the production capacity further. Recently automated production plant was installed which has a production of 70,000 crates per day. The manual plants installed have a production of around 30,000 crates per day. The plant which was installed at the time of establishment has now been grounded. Pepsi Multan was once the market leader, but recently due to some weaknesses its market share has dropped.

The company is properly serving all these areas with quality products. PEPSI Multan is ISO certified.

Vision StatementThe vision statement is “we were favorite, and that we are going to be range one”. Their collective success depends on their healthy balance ways the organizations desires and therefore the desires of their staff and their families
Mission StatementTo be the world’s premier shopper product Company targeted on convenient foods and beverages. We tend to look for to provide healthy monetary rewards to investors as we offer opportunities for growth and enrichment to our staff, our business partners and therefore the communities during which we tend to operate, and in everything we tend to do, we attempt for honesty, fairness and integrity.”
Management of Shamim and CompanyManaging Director Alamgeer Khan Tareen
Chief Operating Officer Amir Hameed
General Manager Plant Mohammad Danish
Audit Manager Shoaib Tarimzi
MIS Manager Yasir Bodla
Head of Sales Shehzad Khan
Head of Procurement Department Mr. Fawad
Head of Banking Department Tahir Amin
Accounts Manager Sajid Butt
Head of HR Department Fatima Adnan
Manager Training Jawad Zafar
Human Resource Department
Audit Department
Accounts and Coordination Department
Management Accounts Department
Banking and Finance Department
Marketing MixMarketing is that the task of making, promoting and delivering merchandise and services to shoppers and businesses. Organizations determine and profile distinct cluster of consumers UN agency would possibly like or need variable product and promoting mixes. The client seeks for worth and satisfaction. The organizations will increase the worth of the client providing in many ways that e.g. raising edges, reducing prices etc. promoting combine could be a set of tools that the firm uses to pursue its marketing objectives within the target market. These promoting tools area unit called four PS of selling.

ProductsA product is anything that can be offered to a market to satisfy a want or need and a service is an act or performance that is essentially intangible and does not result in the ownership of anything. What products or services have to be offered to the target market depends on the market requirement and also the organization’s profits. The organization will offer those products and services, which result in maximum profits and minimum costs. The products related to soft drinks offered by PepsiCo in Pakistan are as following.

Pepsi cola
Pepsi Diet
7UP
7UP free
Miranda
Mountain Dew
Sting
Slice juice
PriceIt is second important tool of marketing mix because it plays a major role in determining the customer’s choice. Also it is the only marketing tool that results into revenue. The customer makes a comparison between the prices offered by other companies and PepsiCo and then selects the most suited offer. Following is the list of prices of different products of all brands.

Product Price
250ml Rs. 20
1000ml Rs. 65
1500ml/1750ml Rs. 85
300ml Rs. 35
500ml Rs. 45
250ml Sting Rs. 30
500ml Sting Rs. 60
240ml Slice Juice Rs. 25
Shamim and Co Bottling Company normally uses on going price strategy by seeing its major competitor Coca Cola besides this company also uses Discount price strategy during special occasions. Like Ramadan offer.
PlaceThe location of the organization plays a vital role in making its operations profitable. If the organization outlets are located in some near markets then it will be very easy for it to attract people. Therefore Shamim and co has most of its outlets at places where it can reach its targets customer easily. Following are the major areas which come under operations of Shamim and co:
Multan
Sahiwal
Muzaffargarh
Lodhran
Bahawalpur
Bahawalnagar
Rahim Yar Khan
Pakpattan
D.G Khan
Khanewal
Vehari
Major Customers in Multan
Following are some major customers of Pepsi Multan (Shamim and Company) in Multan city:
Tasty Food Plus
Mehboob Bakers
Ideal Bakers
Food Festival Network
Chase Up
Shamim and co identifies their target market in Multan division through following ways:
General stores
Cold corners
Parks
Traffic areas and public areas
PromotionPepsiCo is actively taking part in promotion of its merchandise and services through promotional material and alternative promotional schemes. PepsiCo spends a serious portion of its budget on advertising. Advertising is completed through alternative ways like. Promotion through the their chillers and alternative materials like refrigerators that square measure provided to completely different retailers with the emblem of dope square measure the that} of promotions which square measure enclosed into purpose of purchase promotions. promoting by mistreatment completely different promoting mediums like electronic and medium and mistreatment far-famed celebrities as endorsers and ambassadors of dope, they largely use Tv ads for his or her promotions. PepsiCo has additionally developed its culture among youngsters and Next Generation is its locution. Currently dope has become the requirement of everybody and it’s solely attainable thanks to its robust promotion.

Learning as Internee
WEEK 1
My Activities in Human Resource DepartmentMy initial day of spot started in HR department of the organization. Miss Fatimah Adnan told U.S. the importance of the human resource department in a very company. The aim of a personality’s resource department is to recruit the proper person for the proper job at right time. Time unit department forms a bridge between the worker and leader. The most important functions of time unit department in Shamim and Company are as following:
Recruitment and SelectionInformation and requests are sent from among the corporate for the hiring of recent folks. Applications are received from hiring department, that mentions the name of department, name of manager of that department and conjointly the name of supervisor that require new hiring. Shamim and Company oft publishes ads associated with jobs. It provides chance to accomplished folks to indicate their skills. Verbal description and job necessities are mentioned in those ads. The corporate receives lots of applications and CVs anytime. The people that best meet the necessity are short listed and entailed coaching programs.

There are majorly two types of employments in Shamim and Company,
Permanent or temporary
New or replacement
Employees TrainingShamim and Company provides job training to new employees. There are two major types of job training that are, on job training and off job training. In Shamim and Company only on job training is provided. The job training for present employees include the following types:
Team Building and Team base skills training
Advance excel and visual base trainings
Performance AppraisalThe performance of workers is additionally evaluated and measured by the human resource department in Shamim and Company. There are forms that are stuffed by supervisors associated with the performance of the precise workers. Performance don’t seem to be solely evaluated by the supervisors however additionally through the behavior of workers with their fellow staff.

The performance report include three categories of documents, these three documents are:
Job description document.

Quarterly objectives.

Competencies and skills
RewardingThe employees UN agency have performed well ceaselessly and achieved the objectives on time ar rewarded with numerous edges. These rewards may be financial furthermore as non-monetary. Non-monetary rewards embody the appreciation letter by the metric weight unit of the individual department or promotions.Those who don’t perform well in their work ar given more coaching if needed, and if they still don’t perform as per demand, they’re demoted or discharged.

Compensation and BenefitsShamim and Company gives various benefits to its employees and management. Some of the major compensations and benefits are as following:
?         Yearly bonus.

?         Eid bonus.

?         Sampling (Bottles for Home).

?         Leave facility.

?         Employee old age benefits.

?         Mobile charges.

?         Security.

?         Life insurance.

?         Fuel and Convince.

?         Incentives.

Mr. Fahad Ahmed within the Human resource department showed US the documents associated with performance of the workers. He conjointly showed US the past ads that Shamim and Company gave in Dawn and Jang Newspapers. The ads asked for the qualifications, skills and temperament traits. we have a tendency to conjointly conducted a man-made employment interview within the workplace.The online check is conducted within the workplace. The queries within the on-line check area unit associated with basic arithmetic, logical reasoning and a few a part of it’s Basic English. Job ads are announce on the websites like roozi.pk. the ultimate job approval is created by Alamgeer Khan Tareen
Week 2
My Activities in Audit DepartmentI met Mr. Shoiab Tarimzi on the first day in the audit department. He gave some basic introduction of the Pepsi Multan. The company cover almost all of the South Punjab region, including:
?         Multan
?         Sahiwal
?         Muzaffargarh
?         Lodhran
?         Bahawalpur
?         D.G. Khan
?         Khanewal
?         Vehari
?         Rahimyar Khan
The purpose of audit department is keep a check and balance and gives opinion. The audit department in Pepsi Multan (Shamim and Company) keeps check on every work, from canteen to accounting transections. The audit department reports all issues to the senior management.
Reports in Audit Department The reports received by audit department area unit non-verified, and audit department verifies them. All the Audit reports embrace 3 major sections. These area unit as following:
?         Observation
?         Recommendation
?         Management Response
Mr. Adnan within the audit department showed American state recent audit reports one among the report was regarding the stock that was received from Tariq Glass and was lying in direct sun lightweight. The audit team ascertained that the stock in sun lightweight are often broken. The advice given by the audit team was that this stock ought to be within the shed or a minimum of be coated. The management gave response that the stock was outside the shed owing to the attachment being exhausted the shed.

Internal AuditThe audit department conjointly tests the things that area unit daily bought for canteen and therefore the recipes that area unit created within the canteen for the labor. Once bottles area unit stuffed within the production plant, a chemist conjointly takes the sample and checks the standard and reports it to the audit department. The preservation and ingredients ratios are checked. If any deviation from the quality is found, the complete batch is drained before stepping into market. The audit team makes review when each half-hour, and if the team finds any laziness from the facet of workers, it’s straightaway according to the operation manager.

External AuditI was enlightened that there’s associate degree external audit team that comes from port. This team takes samples haphazardly from the market and check the standard, as if they’re per customary or not. Shamim and Company has shown sensible quality for last 5 years, and been awarded again and again for it. The corporate incorporates a terribly rigid internal control system. The bottles even have codes thereon.

L14164083612RCM15
L License code
14 Year
164 Day of the year
0836 Time of the day
1 Shift
2 Plant number
R Plant in charge code
C Chemist code
M City code
15 Tank number
The Audit team is involved on each step of production process, that includes processes like;
Testing of Raw Material.

Sugar Testing.

Water Treatment Testing.

Syrup Testing.

Finished Product Testing.

Week 3
My Activities in Accounts and Coordination DepartmentI met Mr. Sajid intervene the accounts and coordination department. i used to be told concerning the key work that’s worn out the accounts and coordination department of Shamim and Company. Accounts department records the transections and different major tasks in raw kind, that area unit later processed and transferred to Management Accounts department. The accounts department records each major kinds of accounting systems, i.e. accounting and accounting system. This department in Shamim and Company performs the following functions:
Payments
Collections
Payroll
Recording
Budget
The management in accounts department of Shamim and Company keeps an eye fixed on the chance to save lots of cash, trying to find discounts or incentives out there for paying the vendors as shortly as attainable. This department is additionally in charge of pursuit owed. within the magnitude relation analysis we’ll see that the day’s sales in assets magnitude relation of Shamim and Company is nice enough and it remained same for each the years, indicating the steady performance of the corporate.Accounting department makes positive that every one the workers area unit paid accurately and on time. apart from this, the department calculate the tax for the corporate. The department maintains the accounts, it’s its own computer code
Accounts department in Shamim and Company maintains budgets. Those budgets are as following:
Annual maintenance budget, which include overhauling of plants and maintenance of the plant at the year end.

Routine budget, which include the maintenance or meeting the needs of routine work.

New machine budget is related to the amount required to purchase and install new machinery in the company.

The accounts and coordination department calculates allowances that embody daily allowance and travel allowances. the corporate appearance for the key areas within the town wherever there’s a lot of sale. the corporate makes agreements with the shopkeepers therein space and supply them fridge or refrigerators. Allowance is paid before. Accounts also are maintained for the sales and promotion activities associated with the corporate. Promotion activities embody the publicity, posting banners and sponsorships. Mr. Irfan gave Maine some receipts and asked Maine add cyber web quantity of all the receipts. Once totaling I matched the number with the one that was already recorded

Week 4My Activities in Management Accounts DepartmentIn the management accounts department I met mister. Sajid Butt. This department is additionally known as as Management and data department and it’s within the building wherever the works is. Through out this era I visited the assembly plant doubly. Mr.Sajid Butt target-hunting me concerning the plant
List of Major SuppliersMr. Jamshed told me about the various suppliers, who provide the raw material. The list of these suppliers is given below.
No. Material Manufacturer/ Supplier
1 Pepsi Concentrate PepsiCo International Ireland.

2 Caps and Closures Gatron Pakistan Limited in Karachi
3 Plastic Bottles Gatron Pakistan Limited in Karachi
4 Glass Bottles Baluchistan Glass Mills & Tariq Glass Limited
5 Carbonated Water Pakistan Bottlers Limited
In Shamim & company, major item of inventory is finished product. There square measure 2 ways in which to distribute that end inventory, the primary methodology is direct and second is indirect methodology. In direct methodology they supply crates of bottles to their dealers at the specified destination through their own transport, in indirect methodology the dealers have their own transport for distribution. Company has its own vehicles for the distribution service. The company maintain all records of delivery trucks in Vehicles Detail Report. This report includes two types of record of delivery trucks. Which are as following:
One way vehicles.

Two ways vehicles.

The department maintains several reports, for which the data has been collected from accounts department and various other department.
ReportsSome of the reports made by this department in Shamim and Company are as following.

Sugar Procurement Report
Production Efficiency Report
Daily Shift wise Report
Vehicles Detailed Report
Empty Unload Report
Raw Material Report
Daily Liquid Report
FIFO Implementation Report
Daily CO2 Production Report
The reports produced by this department are very important, because company’s function depend on these reports. It also records breakage, actual production, stoppage time and production time of the plant.

Week 5
My Activities in Banking and Insurance DepartmentThe second last department I visited throughout my office program was the banking and insurance department of Shamim and Company. This is often one in all the foremost vital department of the corporate. I met Mr. Tahir Amin during this department. This department within the company ensures that the dear assets of the corporate square measure secured and conjointly give the monetary services to the corporate, like leasing and searching for the monetary sources.

Following are the assets that are secured by this department:
Vehicles
Machinery
Stock
Life insurance
Shamim and Company uses the services of the following insurance institutions.

Askari General Insurance Company Limited.

Shaheen Insurance Company.

These assets of Shamim and Company are usually insured for a period of one year, and if there is any damage to the asset. The company can claim for the payment of such damages.
The Process of InsuranceThe assets of the company are insured by the following process.

Intimation: Intimation means giving hint. The Shamim and Company gives intimation to the insurance company for the insurance of a specific asset. All the important documents are provided to the insurance company related to the asset.

Survey: After receiving the intimation from the company, the insurance company than send a team to investigate about the asset. The team needs to investigate to get all facts about the market value, cost and life of the asset.

Cover Letter: After the completion of survey process, if the insurance company is satisfied it issues cover letter to Shamim and Company. This cover letter includes all important information about the expiry date, premium and other necessary information needed to get asset insured.

Premium Payment Receipt: When the cover letter is received by the banking and insurance department, it has to pay the premium within a period one month to the insurance company. After the payment is made, insurance company issues premium payment receipt to Shamim and Company. This receipt is kept by the banking and insurance department. It can be used when there is any damage to the asset that is being insured.Leasing ActivitiesFirms typically prefer to lease long assets instead of purchase them for a range of reasons. There area unit 2 sorts of accounting ways for leases: in operation and capital lease. an enormous majority area unit in operation leases. associate degree in operation lease is treated like transaction payments area unit thought-about operational expenses and therefore the quality being chartered stays off the record. In distinction, a capital lease is a lot of sort of a loan; the quality is treated as being closely-held by the leaseholder thus it stays on the record.Banking and insurance department in Shamim and Company is accountable for leasing activities. the corporate has chartered several assets from completely different money establishments within the past years.Following are few of financial institutions providing assets on lease to Shamim and Company:
MCB Bank Limited
Faysal Bank Limited
Habib Bank Limited
Major Documents
The major documents used in banking and insurance department of Shamim and Company are as following:
Letter of CreditThe letter of credit is a document used by the company when it is importing raw material from another country. The bank issues a letter of credit in favor of Shamim and Company and ensures to the importer that if the company does not pay the bank will pay the amount for the goods imported.

Cover NoteAs discussed before, a cover note is a document that is issued by the insurance company to the banking and insurance department when Shamim and Company insures any of its asset. This document contains important description like the value of asset and period of insurance.
Competitor AnalysisCoke vs PepsiThe major competition of Pepsi Cola within the world is Coca cola. Coke covers a bigger portion of market as compared to Pepsi Cola. Coke is that the direct competition of Pepsi Cola, wherever as there square measure another competitors too within the market. An equivalent competition persists within the market of Islamic Republic of Pakistan. Coke is dominating the market of Islamic Republic of Pakistan moreover. The market of Pepsi Cola in Islamic Republic of Pakistan has born in recent years.

PepsiCo Coca Cola
Market Share 31.4% 44.1%
Number of Countries 160 200
Variety of Product Large Large
Target Market Youth General
Strategy Differentiation Differentiation
Diversification Related Related
The promotion activities of Coke have hyperbolic within the past years. Coke is has hosted seven seasons of Coke Studio. Music is extremely common in West Pakistan, thanks to the Coke studio strategy the market share of Coke has hyperbolic. Further, there’s a come by the style and level of carbon dioxide in dope, forcing the buyer switch to Coke. The market sedimentary rock in step with sales is given below.

2014 Pepsi Coke
Net Sales 100% 100%
Gross Margin 53.7 61
Operating Income 13 13.7
The sales of Coke is greater than Pepsi. The management of Coke has been working efficiently in controlling the cost of goods sold, and using that amount in selling, advertising and promotional activities.

Gourmet vs PepsiThere has always been a threat of new entrant to Pepsi in Pakistan. Gourmet is the uprising local carbonated drink producer. Its sale has increased during the past year. The main reason for the increase in sales of Gourmet is the low price and different additional flavors.

Financial StatementsINCOME STATEMENTSHAMIM & Co.

2014 2013
000 000
Rupees Rupees
Net Revenues 6,534,934 6,508,670
Cost of goods sold 3,026,632 3,061,814
Gross profit 3,508,302 3,446,856
Selling, General and Administrative expenses 2,560,348 2,484,986
Amortization of intangible assets 9,016 10,780
Operating profit 938,938 951,090
Interest expenses (89,082) (89,278)
Income before income tax 849,856 861,812
Provision for income tax 215,502 206,192
Net Income 634,354 655,620
Statement of Cash FlowsShamim & Co.

2014 2013
000 000
Operating Activities Rupees Rupees
Net Income 634,354 655,620
Depreciation & Amortization 257,250 260,974
Stock-based Compensation expenses 29,106 29,694
Merger & Integration charges – 980
Cash payments of merger & integration charges – (2,450)
Restructuring & impairment charges 40,964 15,974
Cash payment for restructuring & charges (26,068) (13,034)
Cash payments to restructuring charges related to Tariq Glass – (2,548)
Shaikhu Pura remeasurement charges 10,290 10,878
Excess tax benefits from share based payments (11,172) (11,466)
Pension & retirement medical plan expenses 65,366 64,974
Pension & retirement plan contribution (64,190) (25,676)
Deferred Taxes (1,862) (103,684)
Accounts & notes receivables (33,614) (8,624)
Inventories (10,878) 392
Prepaid expenses 7,840 (4,998)
Account payables 113,876 98,686
Income tax payable 36,358 8,428
Other net (26,362) (34,202)
Net Cash provided by Operating Activities 1,029,588 949,424
Investing Activities Capital spending (280,182) (273,910)
Sales of property, plant & equipment 11,270 10,682
Cash payments related to transactions with Tariq Glass – (294)
Acquisition & investment in non-controlled affiliates (8,624) (10,682)
Divestitures 19,894 13,034
Short term investments More than three months purchase (617,890) –
More than three months maturities 381,318 –
Three months or less, net 11,368 5,978
Other investing, net (980) (2,058)
Net Cash used for Investing Activities (483,826) (257,250)
Financing Activities Proceeds from Insurances of long term debt 377,790 411,110
Payments of long term debt (214,522) (381,612)
Short term borrowings: More than three months proceeds 4,900 2,254
More than three months payments (980) (48,216)
Three months or less, net (199,626) 160,132
Cash dividends paid (365,540) (336,532)
Share repurchase-common (491,176) (294,098)
Share repurchase-preferred (980) 686
Proceeds from exercise of stock options 73,990 110,054
Excess tax benefits from share based arrangements 11,172 11,466
Acquisition of non-controlling interests – (1,960)
Other financing activities (4,900) (3,234)
Net Cash used for Financing Activities (809,872) (371,322)
Effects of exchange rate changes on cash & cash equivalent (53,508) (19,208)
Net Decrease/Increase in cash & cash equivalent (317,618) 301,644
Cash & cash equivalent at the beginning of year 918,750 617,106
Cash & cash equivalent at the end of year 601,132 918,750
Balance SheetShamim& Co.

2014 2013
000 000
ASSETS Rupees Rupees
Current Assets Cash & Cash equivalent 601,132 918,750
Short term investments 254,016 29,694
Accounts & Notes Receivables 651,798 681,492
Inventories 308,014 334,082
Prepaid expenses & other assets 210,014 211,876
Total Current Assets 2,024,974 2,175,894
Non-Current Assets Property, Plant & Equipment 1,689,912 1,820,350
Amortization of Intangible Assets 142,002 160,524
Goodwill 1,466,570 1,628,074
Other amortized intangible assets 1,238,622 1,411,290
Non amortized intangible assets 2,705,192 3,039,372
Investment in non-controlled affiliates 263,522 257,054
Other Assets 84,280 139,650
Total Assets 6,909,882 7,592,844
LIABILITIES AND EQUITY Current Liabilities Short term obligations 497,448 519,988
Accounts payable and other current liabilities 1,275,568 1,228,234
Total Current Liabilities 1,773,016 1,748,222
Long term debt obligations 2,334,458 2,384,634
Other liabilities 562,912 483,238
Deferred Income taxes 519,792 586,628
Total Liabilities 5,190,178 5,202,722
EQUITY Capital stock 405,720 403,760
Retained earnings 4,811,016 4,549,160
Accumulated other comprehensive loss (1,045,562) (502,446)
Repurchase common stock (2,448,530) (2,058,392)
Total common share equity 1,722,644 2,392,082
Non-controlling Interest (2,940) (1,960)
Total Equity 1,719,704 2,390,122
Total Liabilities and Equity 6,909,882 7,592,844
RATIO ANALYSISLIQUIDITY RATIOSThe liquidity ratio is used to measure a company’s ability to pay the short term obligations. This ratio is basically used to have an idea of the company capability to pay off its short term obligations which are usually debt and notes payables, with its short-term assets such as cash, inventory, and receivables.

Current RatioThe current ratio of Shamim and Company shows that the company has sufficient current assets, which can be converted into cash easily to pay the obligations which can arise on a sudden. The current assets in the year 2014 decreased a little because of the outflow of the cash in investing and financing activities.

The Current Ratio = Current Assets/ Current Liabilities
2013 2014
1.24 1.14
Quick Ratio/ Acid Test RatioThis ratio also measures the company’s ability to meet the short term obligations. But this method is based upon a conservative approach, because inventories are also a part of current assets, but can take time to be converted into cash. Therefore this ratio excludes inventories from the current assets and uses only the most liquid assets to meet its current obligations. According to the data I received, Shamim and Company could meet 93% of its current obligation with its most liquid assets in the year 2013. Which reduced to 85% in 2014. The formula for calculating the ratio is given below.

Quick ratio = (current assets – inventories) / current liabilities
2013 2014
0.93 0.85
Cash RatioCash ratio is also used to measure the company’s ability to meet its current obligation but with cash only, which does not need to be converted into anything else to pay the obligation. This is based on the most conservative approach. You don’t have sell off your investments and other current assets to get cash to pay the immediate obligations. Although the current ratio of Shamim and Company decreased from 0.53 in 2013 to 0.34 in 2014, the company is still in position to pay off almost 34% of current liabilities in 2014. Cash was reduced during the year of 2014, because of increase in cash outflow in investing and financing activities. The formula for calculating the cash ratio is given below:
Cash Ratio = Cash and Cash Equivalent/ Current Liabilities
2013 2014
0.53 0.34
Working Capital
This quantitative relation is truly accustomed live the company’s monetary health during a specific amount. There area unit the approaches associated with capital, conservative approach during which the corporate doesn’t take risk and also the investment activities of the corporate area unit terribly low, wherever as aggressive approach is opposite thereto, during which corporations area unit needing to take risks and thus investment activities area unit additional. The moderate approach is in between these 2 approaches. throughout the year of 2014 Shamim and Company leaned a touch towards the aggressive approach, because the investment activities inflated by double throughout the year. capital is calculated by deducting current assets from current liabilities, and it compares current assets with the present liabilities. the present assets of Shamim and Company have stayed quite current liabilities within the past 2 years.

Working Capital = Current Assets – Current Liabilities
2013 2014
427,672 251,958
Liquidity PerformanceLiquidity ratios area unit wont to confirm a company’s ability to fulfill its short debt obligations. Company that’s systematically having bother meeting its short debt is at the next risk of bankruptcy, liquidity ratios live} an honest measure of whether or not an organization are ready to well continue as a going concern. From the info we are able to see that the present assets of the corporate have stayed larger than the present liabilities, attributable to that the corporate features a sensible money position. The short term investments exaggerated within the year 2014. The money slashed attributable to the rise in finance activities and since of the payment of some short term obligations.

ACTIVITY RATIOSAccounting ratios that live a firm’s ability to convert completely different accounts among its balance sheets into money or sales. Activity ratios {are|ar|area unit|square live} accustomed measure the relative potency of a firm supported its use of its assets, leverage or different such record things. These ratios square measure necessary in deciding whether or not a company’s management is doing a decent enough job of generating revenues, cash, etc. from its resources
Receivable Turnover RatioThis magnitude relation is employed to calculate the effectiveness of the corporate within the extending of credit and its ability to gather the debts. It show the amount of times throughout the year the corporate collects its average accounts assets. Higher the due turnover magnitude relation the aggressive assortment policy and additionally a lot of variety of top quality customers. The assembling policy of Shamim and Company is nice enough, however still there’s an area for improvement.The ratio shows a little increasing trend. The formula for calculating the receivable turnover ratio is given below:
Receivable Turnover Ratio = Net Sales/ Average Gross Receivables
2013 2014
9.76 9.80
Days Sales in ReceivablesThis magnitude relation is employed to judge or calculate however long the purchasers of the corporate square measure taking to pay. This show the potency of the corporate in assembling the assets. The lower the magnitude relation, the simpler the management is, in assembling payments. the times sales in assets magnitude relation of Shamim and Company is nice enough and it remained same for each the years, indicating the steady performance of the corporate.The formula for calculating the day’s sales in receivable ratio is given below:
Days Sales in Receivables = Gross Receivables/ Net Sales x 365
2013 2014
37 Days 37 Days
Inventory TurnoverThis magnitude relation show the amount of your time the inventory of a particular company is sold throughout a year, or is replaced throughout a year. The low inventory turnover magnitude relation show that there’s excess inventory and there’s poor sale. Company’s sometimes commerce biodegradable merchandise have higher inventory turnover magnitude relations, as is that the case in Shamim and Company. The sirup can not be keep for weeks. so the inventory turnover magnitude relation of Shamim and Company is nice enough. though it shriveled a bit in 2014, however the modification is minor.The formula for calculating the inventory turnover is given below:
Inventory Turnover = Cost of Goods Sold / Average Inventory
2013 2014
9.67 9.40
Days Sales in InventoryThis magnitude relation is employed to calculate the time in days for a corporation to convert its inventory into sales. The lower magnitude relation indicates that the merchandise of the corporate square measure well demanded, and thus the shorter the time in days the higher it’s for a corporation. the times sales is in inventory of Shamim and Company has stayed virtually identical within the last 2 years. It takes virtually a month on the average to convert the inventory into sales. any the sales increase within the summer season. Asian country is in an exceedingly region wherever the summer incorporates a longer spell.The formula for calculating days sales in inventory ratio is calculated as bellow:
Days Sales in Inventory = Ending Inventory/ Cost of Goods Sold x 365
2013 2014
38 Days 39 Days
Operating CycleOperating cycle includes each day’s sales in due and day’s sales in inventory. in operation cycle is employed to seek out out the amount of days a corporation sometimes takes in realizing, its inventory into money. If the in operation cycle is a smaller amount, which suggests the company’s money is busy for a brief amount. The in operation cycle in 2014 accrued by at some point, because of increase in day’s sale in inventory by at some point. The operating cycle is calculated as follows:
Operating cycle = Days sales in Receivables + Days sales in Inventory
2013 2014
75 Days 76 Days
Operating PerformanceOperating ratios activity ratios, live the potency with that a business uses its assets, like inventories, assets, and stuck assets. The a lot of usually used in operation ratios square measure the typical assortment amount, inventory turnover ratio, and inventory turnover in days. once the calculation of some necessary activity ratios, we tend to return to a conclusion that the performance of the company’s management is nice enough. The performance of the corporate has stayed steady throughout the previous couple of years. corporations commerce biodegradable merchandise have higher inventory turnover ratios, as is that the case in Shamim and Company. The sirup can not be keep for weeks. so the inventory turnover magnitude relation of Shamim and Company is nice enough. though it shriveled a bit in 2014, however the modification is minor. The in operation cycle of the corporate has additionally stayed identical.

DEBT RATIOSThese ratios give users a general idea of the company’s overall debt load as well as its mix of equity and debt. Debt ratios can be used to determine the overall level of financial risk a company and its shareholders face. In general, the greater the amount of debt held by a company the greater the financial risk of bankruptcy.

Times Interest Earned RatioThis ratio is used to find out whether the company is able to meet the interest expenses or how much times greater or less the earnings before interest and tax is as compared to the interest expense. It is also sometimes known as Interest Coverage ratio. The earnings before interest and tax of Shamim and Company are over ten times the interest expense in both the years. This shows the success of the company in the region. Creditors will always be in favor of such company because it shows that Shamim and Company can easily afford its interest payments whenever they are due. The formula for times interest earned ratio is given below:
Times Interest Earned = Earnings before Interest and Tax / Interest Expense
2013 2014
10.65 10.54
Debt RatioDebt ratio indicates the percentage of assets that are provided by debt. The debt ratio needs to be lower. The higher debt ratio the more it is exposed to financial risk. Financial ratio should be lower than one. If the ratio exceeds one that means the company has more debts than the assets. The Debt ratio of Shamim and Company is less than one, which is a okay, as the company was incorporated in mid 1960s, it has developed a strong base. The debt ratio is calculated by the following formula:
Debt Ratio = Total Liabilities / Total Assets
2013 2014
0.68 0.75
Debt to Equity RatioThis ratio shows the relative portion of owners’ equity and debt used to finance the assets in the company. It also expose the amount of debt financing in the business. High debt to equity ratio can mean that the company is aggressive in growth financing. On the other hand if the company is using less leverage than it has a strong position. Shamim and Company has high debt to equity ratio. The company is well established and has the potential of taking risk, because in this way it can generate more earnings. The formula for debt to equity ratio is given below:
Debt to Equity Ratio = Total Liabilities / Total Equities
2013 2014
2.17 3.01
Debt PerformanceDebt performance can be used to determine the overall level of financial risk a company and its shareholders face. In general, the greater the amount of debt held by a company the greater the financial risk of bankruptcy. The earnings before interest and tax of Shamim and Company are over ten times the interest expense in both the years. This shows the success of the company in the region. The Debt ratio of Shamim and Company is less than one, which is a fine. The long-term liabilities increased in the year 2014, causing the debt ratio to increase.

There are no shareholders of Shamim and Company. The company is well established and has the potential of taking risk, because in this way it can generate more earnings.PROFITABILITY RATIOSThese ratios are used to assess a business’s ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For most of these ratios, having a higher value relative to a competitor’s ratio or the same ratio from a previous period is indicative that the company is doing well.

Net Profit MarginNet profit margin is used to find out, what portion of the total revenues is kept as the net income. Higher net profit margin indicates that the company is running successfully. So is the case with Shamim and Company, Pepsi and other drinks like 7up etc. are sold in the market throughout the year. The net profit margin of Shamim and Company has decreased by 0.1 in the year 2014, because the net profit of the company decreased a bit in 2014. This could be because of the increase in the market share of Coca-Cola. The net profit margin is calculated by the formula given below:
Net Profit Margin = Net Profit / Net Sales
2013 2014
0.10 0.09
Return on AssetsThis ratio is used to find out the efficiency of the assets of the business in generating the profit for that period. It measures the profitability. This ratio also gives an idea about how well the management is in utilizing the assets of the company to generate the profit. The return on asset of Shamim and Company has decreased a little because of the decrease of net income in 2014. Return on Assets is calculated by the formula given below:
Return on Assets = Net Income /Average Total Assets
2013 2014
0.09 0.08
Gross Profit MarginA 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. Gross profit margin serves as the source for paying additional expenses and future savings. The company’s gross profit margin increased a little from the last year, because of the increase in revenues. The increase in revenues could be because of the increase in price of 250ml bottles.

The formula for calculating gross profit margin is as following:
Gross Profit Margin = (Sales – CGS) / Sales
2013 2014
53 53.7

Profitability PerformanceAs the net revenues for the year 2014 were greater than 2013 and the corresponding cost of goods sold decreased, the gross profit margin ratio was therefore greater in 2014. The company spent more on selling and administrative expenses as compared to the last year. Pepsi and other drinks like 7up etc. are sold in the market throughout the year. The net profit margin of Shamim and Company has decreased by 0.1 in the year 2014, because the net profit of the company decreased a bit in 2014. The return on asset of Shamim and Company has decreased a little because of the decrease of net income in 2014.

Horizontal AnalysisBalance Sheet
2013 2014
ASSETS % %
Current Assets Cash ; Cash equivalent 100 65
Short term investments 100 855
Accounts ; Notes Receivables 100 95
Inventories 100 92
Prepaid expenses ; other assets 100 99
Total Current Assets 100 93
Non-Current Assets Property, Plant ; Equipment 100 92
Amortization of Intangible Assets 100 88
Goodwill 100 90
Other amortized intangible assets 100 88
Non amortized intangible assets 100 89
Investment in non-controlled affiliates 100 102
Other Assets 100 60
Total Assets 100 91
LIABILITIES AND EQUITY Current Liabilities Short term obligations 100 95
Accounts payable and other current liabilities 100 104
Total Current Liabilities 100 101
Long term debt obligations 100 98
Other liabilities 100 116
Deferred Income taxes 100 88
Total Liabilities 100 99
EQUITY Capital stock 100 100
Retained earnings 100 106
Accumulated other comprehensive loss 100 208
Repurchase common stock 100 119
Total common share equity 100 72
Non-controlling Interest 100 150
Total Equity 100 72
Total Liabilities and Equity 100 91
Interpretation
Total Assets and total liabilities and equities all weakened from the previous year. the foremost amendment, or rather the foremost increase was within the short term investment of Shamim and Company within the year of 2014. gazing the income statement, I found that there was a rise in finance and finance activities of the corporate thanks to that the money and certificate of indebtedness weakened to sixty fifth within the year 2014.

Income Statement
2013 2014
% %
Net Revenues 100 100.4
Cost of goods sold 100 98.8
Gross profit 100 101.8
Selling, General and Administrative expenses 100 103
Amortization of intangible assets 100 83.6
Operating profit 100 98.7
Interest expenses 100 99.7
Income before income tax 100 98.6
Provision for income tax 100 104.5
Net Income 100 96.7
Interpretation
The management of the corporate was terribly effective in dominant the price of products sold , attributable to that the lucre of the corporate inflated in 2014. the corporate would possibly of used totally different techniques to manage the price of products sold , attributable to that the executive expenses inflated by third-dimensional from the previous year. apart from this the tax for the year conjointly inflated. though the lucre for the year inflated, however thanks to alternative expenses Infobahn profit was below the previous year.

Vertical Analysis
Balance Sheet
2013 2014
ASSETS % %
Current Assets Cash ; Cash equivalent 12.1 8.7
Short term investments 0.4 3.6
Accounts ; Notes Receivables 8.9 9.4
Inventories 4.4 4.4
Prepaid expenses ; other assets 2.8 3.0
Total Current Assets 28.6 29.3
Non-Current Assets Property, Plant ; Equipment 24 24.4
Amortization of Intangible Assets 2.1 2.0
Goodwill 21.4 21.2
Other amortized intangible assets 18.6 18
Non amortized intangible assets 40 39
Investment in non-controlled affiliates 3.4 3.8
Other Assets 1.8 1.2
Total Assets 100 100
LIABILITIES AND EQUITY Current Liabilities Short term obligations 6.8 7.2
Accounts payable and other current liabilities 16.1 18.5
Total Current Liabilities 23 25.6
Long term debt obligations 31.4 33.8
Other liabilities 6.4 8.1
Deferred Income taxes 7.7 7.5
Total Liabilities 68.5 75.1
EQUITY Capital stock 5.3 5.8
Retained earnings 60 69.6
Accumulated other comprehensive loss (6.6) 15.1
Repurchase common stock (27.1) (35.4)
Total common share equity 31.5 24.9
Non-controlling Interest (0.03) (0.04)
Total Equity 31.4 24.8
Total Liabilities and Equity 100 100
Interpretation
Total current assets of Shamim and Company accumulated within the year 2014. Among this assets the most important increase was within the short term investment. The maintained earnings within the year 2014 were conjointly quite the maintained earnings in 2013. Total equity in 2014 was below the last year, whereas the entire liabilities were bigger in 2014 as compared to the last year, attributable to the debt to equity magnitude relation in 2014 was bigger than the past year, as calculated in magnitude relation analysis portion
Income Statement2013 2014
% %
Net Revenues 100 100
Cost of goods sold 47 46.3
Gross profit 53 53.7
Selling, General and Administrative expenses 38.2 39
Amortization of intangible assets 0.16 0.14
Operating profit 14.6 14.4
Interest expenses 1.37 1.36
Income before income tax 13.2 13
Provision for income tax 3.2 3.30
Net Income 10 9.7
Interpretation
As mentioned earlier, the corporate tried to regulate value of products sold , due to that value of products sold was lower within the year 2014, and so earnings within the year 2014 was above the year 2013. the executive expenses and also the tax for the year 2014 were above the last year, due to this Infobahn financial gain was below the past year.

WEEK 6
Cold Assets Department:
Cold Asset ManagerMr Husnain Wattoo
It is also known as TOT department i-e “Tools for Trade”. This dept is maintaining the record of freezers and visi-coolers. It came into being in 2009. Before, it was under the SIS department.

To supply the deep freezers and visi-coolers to the shops, canteens and all the points of Pepsi is their core function.

This department is further divided into two sub-departments:
TOT Issuance
TOT Workshop
TOT Issuance:
The work of TOT Issuance is to check:
Chiller Injection
Physical Verification
Schedule Census/Tracking
Handover
Chiller Injection:
In this dept the demand of freezers generated by sales officers is notified. After a certain amount of demand, the TOT department gets the full documentation of all the requiring shops and verifies it. After verification of documents the head of TOT department, mam gets the signature of GM and Sales operation Manager and issues the freezers.

Physical Verification:
When the freezer is issued the MEM goes himself to the market and verifies from the shops either they have got the freezers on right time or not. If there is any complain then the MEM calls back his subordinates and try to solve their problem.

Hand-Over:
If a shopkeeper switches to Coke or any other competitors brand, then he has to return his freezer to the company. Then the representatives of TOT department picks up that freezer from that shop and hand over it to any other shop where it is demanded.

TOT Workshop:
The duty of this department is to repair the damage freezers. This department deals with only Multan base shops.The shops outside the Multan base are handled by outsourcing.

In order to repair the freezers the has provided the UAN variety wherever workplace note downs the name of search, electric refrigerator variety and name of distribution.The workplace allot a complain code to the search keeper. And sends a team to the search. If the matter is minor then the team repairs the Deepfreeze at the spot, otherwise the team picks up the Deepfreeze and takes it to the workshop.For outside the Multan base, the corporate has agreement with distributor and native mechanic United Nations agency repairs the Deepfreeze of the search and gets payment from the corporate
Types of Freezers:
There are two types of freezers:
Deep Freezers
Visi-Coolers
My weekly activity in Cold Asset department:
I worked under the guidance of Ali who told me to audit and verify the documents of different districts to check injection process manually match with computer reports. I also visited different Shops in the truck.

SWOT AnalysisA tool that identifies the strengths, weaknesses, opportunities and threats of a corporation. Specifically, SWOT could be a basic, simple model that assesses what a corporation will and can’t do yet as its potential opportunities and threats. the strategy of SWOT associatealysis is to require the knowledge from an environmental analysis and separate it into internal (strengths and weaknesses) and external problems (opportunities and threats). Once this is often completed, SWOT analysis determines what might assist the firm in accomplishing its objectives, and what obstacles should be overcome or decreased to attain desired results.

Strengths
PepsiCo Pakistan has a large market share. The second highest market share after Coca Cola.

PepsiCo was established in mid 1960s, there it is well established and well known company in the region.

PepsiCo is one of the leading company in the world, therefore it has a very strong position internationally.
PepsiCo Pakistan offers many different discounted schemes to its customers time to time.

The target customers of PepsiCo Pakistan are mostly youngsters, therefore PepsiCo has more brand loyal customers.

PepsiCo Pakistan sponsors Pakistani cricket team, and many other concerts and cultural events.

PepsiCo Pakistan has a vast distribution channel, and the drinks are available almost everywhere in Pakistan.

The company has a strong distribution system.

Onsite training of 4 to 6 months enables plant engineers to manage plant operations effectively so that machine downtime is reduced to minimal.
Weaknesses
PepsiCo Pakistan always try to target youngsters in the commercials and promotion activities.

PepsiCo tins are not available everywhere except for the center of the rural areas.

Over the past few years the market share of PepsiCo Pakistan has decreased from 46% to 40%.

Demand of the disposable 500ml bottles is declining, and the cause is still unknown to the company.

Poor feedback from employees
The taste of Pepsi has also declined in last few years.

Communication can only take place in a formal communication path which leads to delay in decision making.

Opportunities
The company has the opportunity to introduce new flavors. Like it apple and ice cream flavors produced by other companies.

Clean water demand is increasing in Pakistan, although the company has Aquafina in its product line, but it should increase its production related to Aquafina.
There is a wide range of products offered by PepsiCo internationally. But PepsiCo Pakistan is only promoting limited fizzy drinks through advertisement and other promoting activities.

To increase the sales, PepsiCo Pakistan should sponsor more cultural events and fast food restaurants.
There is high market growth opportunity.

Threats
The main competitor of PepsiCo in Pakistan or internationally is Coca Cola. Coca Cola has increased the advertisement activities, and performing it effectively.

Cola drinks are damaging towards the health, the awareness of people towards this issue is increasing, which can decrease the sales of PepsiCo fizzy drinks.

The production of carbonated drinks by other companies is increasing.

Gourmet is another company that could pose threat to PepsiCo in Pakistan in near future.

PEST Analysis
Political Factors
The political conditions in Pakistan are not stable. None of the government has completed its tenure except the last one. The political factors effect greatly on the industrial sector of the country. Following are the important political factors that affect PepsiCo in Pakistan:
The change in rate of sales tax.

The change in rate of the major operating variables, such as the electricity.

Economic Factors
The economy of Pakistan is strong enough, because of which PepsiCo is affected by number of economic factors. They are as following:
The literacy rate is one of the big problem, because of which rural customers are unable to differentiate between Coke and Pepsi.

Increasing demand of Pepsi requires installation of new Pepsi plants.

Combined pricing decisions with mutual agreement between Coke and Pepsi.

Social Factors
The social factors of each society are different from each other, therefore these also have an impact on PepsiCo in Pakistan. These are as following:
Soft drinks and carbonated drinks are now a day’s part of every social gathering.

The trend of fast food has increased among the youngster, which has led to increase in consumption of Pepsi.

PepsiCo Pakistan also takes part in welfare activities, such as, it donated 1 million to the flood victims in 2010. Free clean water to general public and providing free lights to the people affected by the war in North Waziristan.

PepsiCo has also been sponsoring different cricket event and also the Pakistani cricket team.

Technological Factors
The current era is of technology, no matter if its information technology or production technology. These technologies do have the effect on PepsiCo. These are as following:
In earlier days there was separate plant for the production of different brand size. Now the new automated plant is capable of producing different brand sizes at the same time.

There is very limited automation to keep production record. Most of the record is maintained manually but currently they are trying to shift towards fully automated production control system.

There is no institute in Pakistan providing engineering training regarding beverages production plants so PEPSI people have to arrange onsite training for its maintenance engineers to learn working with latest technology plants
Recommendations and Suggestions
Recommendations and suggestions are considered to be the most important part of an internship report, without which report is not considered complete and meaningful. This part of the report is based on the previous sections. The recommendations and suggestions are as following:
The finance department is established in a house, the rooms of the Human resource department and Information department are very small and congested. An office should look like an office.

Cleanliness should be maintained in the canteen.

Lunch should be offered free to employees.

There were number of power cuts during my internship program. Such power cuts in the offices should be reduced or alternative steps must be taken.

The computers in the offices were all Pentium 4, which is an old technology. Company should have new computers in offices.

Company should provide transport facility to its employees.

Department must provide financial statements to students, so that can make their internship reports easily.

The company should use Wi-Fi internet in offices instead of cable connection.

The company should give incentives to the key accounts executive on the basis of conversion of coke point into Pepsi point.

The market share of Pepsi is decreasing continuously, steps must be taken to overcome this issue.

ConclusionThe company overall has a good working environment in each department, except for few small issues discussed before.

The staff is very hard working and responsible.

The coordination among the departments is good.

The new plant is producing 70,000 crates each day.

The management has huge responsibility to play.

The financial performance of the company is consistent for last few years.

Shamim;Co showing profits since last 5years and according to it’s annul reports its profit is increasing.

Shamim&Co having 85%market share currently and market leader in Multan.

Shamim&Co focusing on continuous expansion especially in fixed assets like building and installing plant.

The purpose of expansion is to increase its share. A very well-establish distribution network covering whole of the franchise areas
What I learnt in the organization
During my internship program I learnt a lot. For example
How to deal with seniors and subordinates
How to communicate with others
Discipline
Punctuality
How to lead my subordinates
How to maintain different records
CommentsVery good working environment in each department.

Very hard working and responsible staff.

Good inter relations among employees. Employees are very friendly to each other.

Each department is using available resources properly.

Each department’s manager has good power to control, coordinate and communicate with its staff. They have well organized their respective department
ReferencesHuman resource department of Shamim and Company.

Wikipedia.org
Procurement department of Shamim and Company.

Investopedia.com
PepsiCo.com