Table of Contents

Introduction . 2 Financial management 3 Ratio analyses i. Liquidity ratio ii. Profitability ratio iii. Gearing ratio iv. Investment Ratio Human resource management 5 i. Purpose of H.R Department ii. Functions of H.R Department iii. Functions of Packages H.R Department iv. Packages procedure for recruiting v. Training in H.R Department vi. Packages procedure for training Managing Information 10 i. Information ii. Process iii. Managing Information at Packages Conclusion and Recommendations . 11 Appendices 12 References ..14

Company Overview: Packages ltd. Is company based in Pakistan that produces paper and packaging material for the other companies. It was established as a result of a joint venture in 1957 among Ali group of Pakistan and a Swedish company Akerland and Rausing to produce paper and packaging for the industry for consumers. Since its joint venture the company is growing rapidly. Packages limited has the monopoly in Pakistan of producing printing solutions, shipping containers and flexible packaging material for the business world as well as for the individuals as well. Unilever, Pakistan Tobacco Company is the major clients the annual turn over for the company was $257 million in 2011. The company has been listed on all the three stock exchanges of Pakistan and holds the long term credit rating of AA given by PACRA. The company has many international joint ventures as well. Packages have always looked to be forward and improve the quality of the products by meeting the demands of the customers. In 1968 with the participation of IFC Packages ltd. Progressed and planted pulp and paper mill that had the capacity of producing 24 tons of paper in a single year. In 1981 the company started producing tissue paper with the brand name Rose petal and by the time they started producing toilet paper, kitchen roll and table napkins. In 1986 the packaging for the food industries were developed by the company in which they cater to the increasing sophisticated demand of the consumers. In 1993 a contract was signed between Mitsubishi and packages limited for the production of polypropylene films and the project was known as tri films limited. In this project packages limited held 33 % of shares while other share holders Mitsubishi Japan, Saudia Arabia and general public Altawfeek company for investment. In 1996 the company expanded its production abilities of paper and raised it to 65000 tons per year while in the same year company improved its production procedures to improve the pollution created by the production of papers to follow the international guidelines for anti pollution production. In 1996 the company started its production in Srilanka and holds 79 % of the ownership and the company started working in 1998. In 2002 the company started a new 8 colour flexo graphic printing machine in it flexible packaging line. In 2005 expanded its board and paper production line at the new site near the kasur and it was expanded in two different phases.

Financial Management: Planning and controlling of financial resources of any organization or firm is financial management. There are three basic issues in the financial management in which the management deals 1. Where to get the money from 2. Where to invest the money 3. What amount of profit to retain and what to allocate to the shareholders (wiki.answers.com, 2012) Financial ratios: Financial ratios are used to indicate the financial performance and financial management of a firm. The ratios are calculated from the balance sheet and income statement of the firm. Financial ratio tells about trends of the firm and theses can also predict the future financial situations or bankruptcy of the firm. (netmba.com, 2012) These ratios are listed below with their meanings and findings of those ratios of the concerned company. 1. Liquidity ratios 2. Profitability ratios 3. Asset turn over ratios 4. Dividend policy ratios 5. Financial leverage ratios Liquidity ratios: Liquidity ratio indicates the ability of the organization to pay its short term creditors from its total cash. (uk.advfn.com, 2012) Current ratios: The current ratio for 2011 is PKR 2.57 and for the year 2010 is PKR 3.52 it means that the companys current ratio is fell down by PKR .95 which is better than the previous year considering they have 2.57 rupees to pay for 1 rupee of its current liabilities. (packages.com, 2012) Quick ratio: In year 2010 company had quick ratio of PKR 1.57 and in the next year they the quick ratio is PKR .96 (Packages.com, 2012) Quick ratio of the company is on the negative side stating that currently company has .96 rupee of cash to pay its short term creditors. Assets turn over ratios: This is the ratio that reflects how efficiently the company is turning its assets to generate revenues. In simple terms it shows how much pounds have been earned by using 1 pound of companys assets. (investinganswers.com, 2012) Inventory turn over: Inventory turn over for packages limited is 79 days in year 2011 while in the previous year it was 80 days clearly showing that company has improved its inventory turn over by 1 day. Debtors turn over: Debtor turn over has also been improved in year 2011 by increasing 1 day from 27 to 28 days which means that company is taking average 28 days to pay its debtors and longer this period is better it is.

Creditors turn over: Creditors turn over days is decreased 1 Day in 2011 Compared to 2010 reflecting a 1 day improvement in the companys management efficiency. In 2010 they took 27 days to pay its creditors while in the next year they took average of 26 days to pay its creditors. Creditors turn over is also a day better comparing to the debtors turn over of the similar year. Operating cycle: The company is taking 80 days to convert its assets in to sales in year 2011 while in the previous year the company was taking 81 days for it. There is slight efficiency in this matter as well by the management of the company. Profitability ratios: Now we will look at the profitability ratios of Packages ltd. To see how the firms management is earning as compared to the costs and expenses on the products that company is producing. Gross Profit ratio: It is the profit ratio that finds out the firms profit after cost of goods sold have been occurred and Packages ltd. Gross profit ratio has decreased quite a lot from the last years gross profit ratio last year it was 3.68 % and now it is drop down to 1.65 % clearly showing the increase in the purchase of raw materials in year 2011. Return on assets (ROA): It defines how efficiently the firms assets are being used to produce profit or how much the firm is profitable as compared to its assets. (Investopedia.com 2012) In Case of packages ltd. ROA has been decreased in year 2011 to (0.04) while in the year 2010 it was (0.01) this ratio clearly showing the inability of the management of the firm to create profit from the assets of the firm. Total assets turnover ratio: This ratio considers all the current assets and fixed assets and how efficiently they are being used to generate sales. This ratio is also less as compared to the previous year it was 0.55 in 2010 and now it is 0.53 stating how sluggish the sales of the firm is. The figures showing that firm is generating 0.53 rupee of sales by consuming PKR 1 of all the assets. (Packages.com, 2012) Fixed assets turnover ratio: How much sales is being generated by the firm by using its fixed assets. In the annual report it says in year 2010 it was PKR 1.22 and in the preceding year it is PKR 1.26 showing that it has increased a bit not magnificently. Gearing ratios: Gearing ratios looks at the capital structure of the business it figures out what percentage of the capital is provided by the debt in relation to the percentage provided by the equity. (tutor2u.net, 2012) Normally a business that has a gearing ratio of more than 50 % is considered to be highly geared and business with less than 25 % is considered as low geared. Debt: Equity ratio: Debt to equity ratio of packages ltd in the year 2011 is .28 times and previous year it was 0.29 times showing that for every Rupee of the company owned by the shareholder the company owes 0.28 rupee to its creditors in year 2011 and .29 rupee in the year 2010. Return on equity (ROE):

It shows how much the company is earning in regards to its shareholders equity. In this case the ROE is in negative i.e. in year 2011 it was 3.98 % and in year 2010 it was 1.23% clearly showing the inability of the firm to generate profit and to deal with the losses that company is having for the last two years. Investment ratios: These are the ratios that investors of the company look at before making any kind of investment Earnings per Share is one of the most important ratios in investment ratios. Earning Per Share (EPS): It represents the profitability of the company and it is the allocation of profit to each share of common stock by the company at the end of the year. (kewdstockanalytics.com, 2012) There is no EPS of Packages ltd. As the company is completely in loss so there is no EPS rather there is a loss of 18.58 rupees to each share of common stock in 2011 and this loss was 3.94 Rupees in 2010. Price earning ratio: It is found out by dividing the current share price with the earning per share. The price earning ratio in 2011 and 2010 is (4.45) and (32.65) respectively both are in negative again showing worse financial situation of the company. P/E ratios show how much the investor is ready to pay for each rupee of earnings. Dividend yield: This is the ratio shows the relationship between the dividend per share and current market price of the share. I.e. if a company has dividend yield of 5 % it means that company is willing to pay $ 5 if the market price of the company shares is $100. The dividend yield of packages ltd. In 2010 was PKR 2.53 and in the next year it dropped down to PKR 1.81 meaning in the last year company had higher dividend yield ratio than 2011 clearly reflecting the down fall of financial situation of the company. (Packages.com, 2012) Human resource Management: HRM is the policies that are developed to for the people and for the management positions; duties also include recruiting, job design, performance appraisal, training and screening. (Dessler, 2006) All these duties include conducting job analysis, employee retention, induction of the company, Employee screening, benefits, managing salaries and rewards etc. Functions of H.R: Job Analysis: Job analysis is the way to find out the duties of the job and to find the people who can do that job efficiently and hiring them for that specific job. (Dessler, 2006) In this function job specifications and job descriptions are designed by the H.R department clearly defining the duties of the employee who is going to perform this job and defining the qualifications and experience of the candidate who can apply for that job (Woods, 2006) Recruiting: It is the process in which the human resource department hires the best employee for the required job either from inside the organization or from outside the organization in a required time space. (businessdictionary.com, 2012) Recruitment can be internal and external, internal recruitment includes job posting, news letter, employee referral, while external sources include online recruiting, campus recruitment, advertisements, succession planning and employment agencies etc.

Training: After the candidates have been selected there is a need for training for those employees and mostly the trainings of the employees starts with the orientation or the induction and further training will start by the time. Evaluation: The next step after the training is the evaluation of the employees and this is done by the feed back from the department head in which the employee is working. The evaluation helps the employees to work harder in the future and look at the mistakes that they have made. Purpose of Human Resource Management: All the people in the world have qualities and every one have different qualities in them and every person differs from the other person in one way or the other. Some people look at their jobs like a passion and some people look at it like a income and nothing else. The main purpose of the human resource management is to minimize the gap between the actual work done by the employee and the ideal requirement of the job to achieve better efficiency from the employees. (Price, 2007) The optimum utilization of the employees to achieve the organizational targets, and putting the work force in the right direction is the purpose of human resource management. (Armstrong, 1992) It is targeted to maximum utilize the employees ability to increase the productivity and profits of the company. HRM looks at the employees on individual basis which encourages the employees to relate himself to the company and contribute with his efforts towards the success of the company. Human resource department of Packages ltd.: This department was first established in the company in 1995 and it has been performing its functions efficiently since than. Functions of H.R Department: There are several functions of this department and all of them are given below: 1. Recruitment and selection 2. Succession Planning 3. Performance appraisal 4. Training and development Recruitment and selection: Packages ltd. is entirely an equal opportunity employer and human resource department is responsible for the recruitment of the staff for the company. The process of recruiting people for work takes about a month. First the concerned department sends the request to the H R department for the hiring of new employee for the required vacancy and after processing it the HR department determines the weather to hire the employee internally or externally. External Recruitment: There are several kinds of external recruitment that packages follow all of them which are listed below Online recruitment: Packages ltd. understands the need for emerging technologies they accept the applications of the people applying online from www.packages.com.pk

Candidates who are interested in applying online can fill the application form and apply. Packages Ltd. Will go through the application form and call the candidate if required Newspaper: Need for the employees are advertised in the leading newspaper of the country i.e. Naw-e-waqt, Jung, Pakistan, Dawn News and The News. Walk in Applicants: Applications from the walk in applicants are also accepted and if they full fill the requirement of the vacancy they are hired as well. On Campus Recruitment: Packages ltd. also goes to the top universities and institutes of the country and they recruit the fresh candidates direct from the educational institutions. The H.R department of the company always publish the vacancy on the notice board of the educational institutions. Employment agencies: The H.R department of Packages ltd. has also outsourced hid recruitment and selection to the employment agencies if required but they do not often use this kind of external recruitment. Internal recruitment: The most common type of internal recruitment done by Packages Ltd. Is the succession planning and all the procedure of it is briefly written in the below paragraphs Succession Planning: Packages ltd. offers the long term career growth to its employees and they do not allow some one to come later and take the seat for the obvious reasons because it will affect the performance of the employees who are already working in the company. They hire the management trainee and groom the employee so that in future he can take the post of higher rank that suite his abilities and interest. The grades of the employees in the company are as follows: Manager ii and above Manager Executive 1 Executive 2 Executive 3 For the succession planning the meeting is held annually by the H.R Department that comprises of the senior members of each department who gives the name of the employee of their own department in the meeting. Senior members include 1. G.M 2. D.G.M 3. G.M HR 4. Head of the respective departments. In this meeting the discussion is held about the performance of the employees and their strengths, weaknesses, abilities, experience, punctuality and regularity are discussed to finalize the name of the candidate Procedure for hiring external executive: Some times company needs to recruit an executive from external recruiting for this purpose the need for it is announced by the concerned department head to the HR department which after assessing it publishes the vacancy in the newspapers, makes it 7

highlighted on the company website. After receiving the CVs of the interested candidates the HR department of the company assesses the qualifications and experience of the candidates and short list their names for the test that is conducted by the Packages ltd. The test consists of 100 marks about which the candidates are given information on the due date in the test centre. The test has following parts 1. Qualitative skills 2. Quantitative skills 3. Writing skills 4. IQ 5. Technical Knowledge After the test has final been checked all the successful candidates are invited through the e-mail, phone calls and mails and candidates who failed are given the second chance for the same vacancy. The successful candidates are called for the preliminary interview which is taken by the panel consisting of 4-5 people leaded by the HR representative and managers of concerned department. The panel is constituted by the HR department. The main purpose of this preliminary interview is to eliminate those who do not qualify for the required vacancy but still some how managed to pass the tests. After the preliminary interview results are been finalised the successful candidates are called for the final interview after 2-3 working days. The final interview is headed by the GM of the concerned department in which the HR head is also present in which the most promising candidate is finalised. After the candidate had been finalised the final step is the medical test of the candidate which is done by the company run clinic near the factory of the company. After the successful medical tests the appointment letters are sent to the successful candidates at least one week before the joining date and failed candidates are sent regret letters. Induction: The company has very good induction program for the newly recruited candidates in whom the employee is taught about the culture of the company, different functions of the department of the company, and this induction periods consists of 4-6 weeks that is held by the HR department of the company. Performance appraisal: Performance appraisal is basically the check and balance of the employees performance in the company and it is a continuous process. Packages ltd. conducts its performance appraisal annually; Employees set their objectives with their relevant managers which are evaluated at the end of the year, MTO performance is evaluated on quarterly basis, employees decision making abilities, personal behaviour, innovation, vision and other skills are also evaluated. These skills are evaluated for the succession planning. The performance appraisal process is given below 1. Identifying specific goals 2. Job evaluation 3. Viewing and examining the work performance 4. Performance appraised 5. Discussion with the employees 6. Training Training: It refers to the learning of employees about the job duties and enhancing their skills in the task. The skills include the knowledge and the behaviours that are helpful for the success of the organization. The purpose of the training is to enable the employee to

master the skills and apply all of them to the job to get the optimum results. It helps the employee for the difficult and demanding challenges of the future. The reasons for which the training is done in Packages ltd. Are New technology New job or task New Laws Requirements of the customer To meet the high demands Low performance of the employees Lack of the fundamental skills Training Process: There are four steps in the training of packages ltd. Need for training Training method Training source Evaluation Need for training: Need analysis is done by the three methods that are given below but the company does the last one for its need assessment Organizational analysis Task analysis Person analysis Person analysis: Person analysis looks at the employees performances and finds out weather the deficiencies are because of lack of skills, lack of knowledge, or the lack of interest from the employees or there is problem with the work design. The person identifies the employees who needs the training and determines the interest of the employees in the training. Task analysis finds out the important skills and behaviour that needs to be figured out for the employee to remain interested and determine in his job. Packages are the learning organization and it has always encouraged its employees to learn new things improve their work, enhance the capability that will result in the benefit of the organization. Training Method: Primarily there are three types of training method In house training On the job training Off the job training In House Training: Packages Ltd. conducts it in house training at Irshad hall and methods for the training are Guest Speakers Panel discussions Presentations Audio visual techniques On the job Training: Newly recruited trainee managers learn the tasks by observing the managers and working under their directions and sometimes self directed learning takes place. Off the Job Training:

Off the job training is done through different ways i.e. case studies, simulations, business games, role play, behaviour modelling etc. Evaluation: After all the training is done than final step is to evaluate the employee performance after training that what he has learned from it. In the company it is done by two ways Formative evaluation Summative evaluation Formative: In this type evaluation the Human resource department determines Programs are designed well Trainee learn the required skills from the program Hoe training can be done best Summative: It is basically the out come of the training to see what employee have learned from the training and is done through Feedback from the employee Performance appraisal of next year Verbal feed back

Managing Information:
It is about applying the management information inside and outside the organization, and communicate it well with in the organization to enable the employees with the information and get the optimum decision out of them. (businessdictionary.com, 2012) Information managers: The managers on which grounds an organization takes decision and he collects, generate and separate the information for the organization decision making. Managing information is dependent on three components Technology People Data/Information Technology: Technology is usually that is used to store the information most commonly used technology is computers. People: People refer to those about whom the information is stored usually those are the customers of the organization. Data: Data is the collection of facts and figures that does not give the actual meaning and information. Information: Arrangement of data in proper manner which gives the information that is required is called information. Process: There are few steps in this process all of them are explained below: 1. Kind of information required: First step in this process is to find out what information is required about your customers and employees. 2. Find out what information you have: Second step is to look at the information that you have and organize it in a proper manner to use it for the growth of the organization. 10

3. Dealing with the information: Once you have gathered all the information about the concerned departments and market its the time to deal with them make sure that the right person has the assess to the right information i.e. marketing department must have information about the market and procurement department must have the information about the suppliers etc. 4. Legislation: Once you have gathered the information about the customers the organization is than liable to protect that information and all the collected information comes under data protection and copyright laws which must be followed by the organization. 5. Cost: After collecting all the information one must work out all the cost that has been occurred on collecting the information. 6. Evaluation: Final step in the process is to evaluate all the information that has been gathered and implement that information to find out the results. More over the system needs to be updated all the time to handle the changing requirements of the customers. (Voluntaryworks.org, 2012) Managing information at Packages Ltd At packages ltd they have their separate research and development department where the finds of the collected information are put and they find out what is required by the customers and ever changing needs and demand of the customers. Packages Ltd does constant research to provide its customers excellent packaging in a cost effective way. The information and Research department of the company is closely linked with the all other department for their daily operations, problem solving and managing the new information. All this information and research helps the company to get in to the main root cause of the problem. To ensure that all products meet required specifications, evaluation of interaction design, product / packaging, shelf life, quality, environmental and regulatory requirements to launch insurance help. The study of the development of contemporary help develop competitive solutions. R & D Services Ltd package comes Recent Articles the HR professional tailors provide support Technical Team for Its Production, SALES give external customers. Conclusions and recommendations: After doing all the research work on the organizations financial, managerial, and human and research aspects there are some recommendations and conclusions about the company. First human resource management activities are not up to the demand of the progressing world. It takes quite along time to recruit and induct an employee it should be reduced down to 2-3 weeks time so that company can optimum utilize the talent and skills of the employee. Human resource department has very low work it should increase their work. Training need and assessment method should be applied up to the accuracy. Career growth of each employee should be well defined. In financial perspective the company currently facing loss and if we look at the previous years the companys operating expenses are rising on yearly basis which clearly representing the in efficiency of the financial staff of the organization. The company should look at the new suppliers as well where they can find cheap supplies for the manufacturing. More over the power problem is also an added factor to the loss of the company the shortage of power in the whole country has affected every single industry like Packages ltd.

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References: Gary, Dessler 2006 a Framework for Human Resource Management 4th edition New Jersey Pearson Prentice Hal Robert H. Woods. 2006. Managing hospitality Human Resources. 4th Edition.USA. Educational Institute. American Hotel & Lodging Association Alan Price. 2007. Human Resource Management in a business context. 3rd Edition. London. Thomson Learning Michael Armstrong 1992. Human Resource Management Strategy & Action. London. Kogan Page Wiki.answers, what is the definition of financial management available from http://wiki.answers.com/Q/What_is_the_definition_of_'financial_management' Assessed online on 27 August 2012 Uk.advfn. help, liquidity ratio available online from http://uk.advfn.com/Help/liquidity-ratio-112.html assessed online on 27 August 2012 Packages.com.pk, annual report available online from http://www.packages.com.pk/images/investordesk/Annual%20Report-2011.pdf assessed online on 27 August 2012

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investinganswers.com, financial dictionary, ratio analysis, turn over ratio available online from http://www.investinganswers.com/financial-dictionary/ratio-analysis/asset-turnoverratio-2339 assessed online on 27 August 2012 investopedia.com, terms, return on assets available online from http://www.investopedia.com/terms/r/returnonassets.asp assessed online on 27 August 2012 tutor2u.net, business, accounts ratio available online from http://tutor2u.net/business/accounts/ratio_gearing.html assessed online on 27 August 2012 Kewdstockanalytics.com, knowledge-centre, investment ratio available online from http://www.kewdstockanalytics.com/knowledge-center/investment-ratios.html assessed online on 27 August 2012 scribd.com,doc, definition available online from http://www.scribd.com/doc/55240242/10/Definition assessed online on 27 August 2012 http://www.businessdictionary.com/definition/recruitment.html assessed online on 27 August 2012 businessdictionary.com, definition, information-management available from http://www.businessdictionary.com/definition/information-management.html assessed online on 27 August 2012 voluntaryworks.org.uk, documents available from http://www.voluntaryworks.org.uk/cvsmidandnorthbeds/documents/HowToManageIn formation.pdf assessed online on 27 August 2012

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