Presented to:Sir Sohail SawaniFaculty of Financial ManagementCollege of Business ManagementKarachi.

Prepared By:

Shahid Raza Id # 2007-3-20-7289

Major: MHM

22. November .2008

Letter of Authorization

November 22, 2008

Dear Readers

I am the student of Health Management MBA program at Institute of

Business Management (IoBM), where as my course requirement of

Financial Management, I am authorized by Sir Sohail Sawani to submit this

Term report.

The content of this report reflects the financial status of Mazza Pvt. Ltd. and

I have tried my level best to present the valuable information gathered.

Sincerely

Shahid RazaMHM

Letter of Transmittal

November 22, 2008

Sir Sohail SawaniCourse FacilitatorInstitute of Business ManagementKarachi

Dear Sir:

The report is on “Maaza Private Limited” which you authorized me to

submit.

This informative report unveils the major aspects of Finance Department of

Maaza Private limited; it also explain the financials of the company and

methods which they used for handling day to day cash and inventory.

Review the report and if there is need for further clarification or elaboration,

contact me at information below.

Sincerely

Shahid RazaMHM 2007-3-20-7289Cell: 0333-2705509shahidnraza@yahoo.comshahidnraza@hotmail.com

Letter of Acknowledgement

November 22, 2008

Dear Reader

I praise Allah All Mighty for giving me the courage and strength to complete

the task of writing the report on “Maaza Private limited”. This report would

be incomplete without the impeccable support and guidance received from

Sir Sohail Sawani, our course facilitator of Financial Management at the

IoBM.

I am thankful to the Administration, especially Assistant Administrator

Syeda Mehwish Shah and Finance Manager, Mr. Lajpat Khatri of Maaza

Private Limited for their utmost cooperation.

I am also very thankful to Mr. Syed Zahid Hussain Shah to help me in gathering data.

Sincerely

Shahid RazaMHM

Page No.A. Prefatory part:

Purpose of Study VIB. Text of Report

1. Introduction 1.1 Brief Background of Company 011.2 Parent Group 021.3 Objectives 021.4 Core Business & Capabilities 021.5 Products 031.6 Departments 031.7 Organogramme 04

2. Finance 2.1 Overview 052.2 Finance Department Organogramme 052.3 Job Description of Finance Personnel 06

2.3.1 Finance Manager 062.3.2 Manager Accounts 072.3.3 Accounts Executive Receivable 072.3.4 Accounts Executive Payable 082.3.5 Accountant 082.3.6 Cashier 09

2.4 Financials 092.4.1 Cash Handling 102.4.2 Inventory Management 10

2.4.2.1 Pulp 112.4.2.2 Concentrate 11

2.4.3 Credit Policy 112.4.4 Some Financial Figures 11

3. SWOC ANALYSIS 12

4. Conclusions 14

5. Recommendations 14

1.1. Brief history of Company The word Maaza comes from the Arabic word “Almaz”. The word used for

Diamonds. The Brand Maaza was launched in 1970 by an American Indian Company

known as “Maaza Beverages, Inc.” in New York, in cooperation with Parle Exporters

Corporation of India.

The success of brand “Maaza” in the 70’s particularly the Gulf region was

tremendous, which finally led to Union Beverages Factory, one of the companies of the

Al Omran Group, to sign a Franchise Agreement in 1974, as the sole bottler of “Maaza”

in the UAE, serving the Gulf Market and the Kingdom of Saudi Arabia. The market

expanded to cover Africa and Europe.

Negotiation to acquire full rights over the brand “Maaza” started in 1994 and

concluded in 1995 by the Al Omran Group of Companies through its subsidiary Maaza

International LLC, which acquired the rights for all markets in the Middle East, Africa,

South and East Asia, Europe, Australasia and many other markets except North America

and India.

Maaza International Co successfully registered the brand in various Middle East

market, the Gulf Markets, Asia, Africa, Saudi Arabia, Jordan, Kuwait, Kenya, Oman,

Yemen, Sudan, Armenia, among others. Maaza International Co. LLC has appointed

franchise bottlers in more than 40 countries.

MAAZA Pakistan (Pvt) Ltd. was established in May 2002. It has the franchise

of Maaza international LLC Dubai to produce juice products under its strict production

and process standards under the brand “MAAZA”. Maaza Pakistan (Pvt) Ltd. Was

incorporated under the companies’ ordinance on May 3, 2002.

1.2 Parent group

Al Omran Group of Companies is an International company based in United Arab

Emirates, with subsidiaries that Includes:

Maaza International LLC, UAE

Gulf Construction Company, UAE

Union Beverages Factory, UAE

Mohammad Omran Trading Agency

Al Omran Chemical & Plastic Industries

Gulf Cancrafters (LLC)

Interplast Co. Ltd.

Gulf Union Juice Factory

1.3 objectives1. Being a renowned beverages Industry, Company has to provide the international

standards quality nutritional enriched juices to their consumer.

2. Get the stable Position in a market

3. Spread their products all over the country

4. Get More profit

1.4 core business & CapabilitiesThe company’s core business is manufacturing, bottling and marketing of fruit

juices for which the company has a factory located in 4 acres of land with a production

capacity of 6000 liters of juice per hour or 300 bottles per minute.

The company’s production capabilities include juices in PET bottles and soft

drinks in PET bottles.

PET bottles are blown in-house with brand new blow molding machines using

per-forms purchased from suppliers within Pakistan. Blowing capacity of all four below-

molding machines is total of 12,000 bottles per hour.

1.5 products

Pulping Products (14 %)

Mango

Apple

Guava

Orange

Cool Up Concentrated

Natural (100%)

Apple

Pomegranate

Guava

Orange

Mineral water

Apple Khaleej

Cocktail

Mango

Lemon lime

Orange

Products Available in

1 x 12 Pack

1 x 24 Pack

1000 ml Bottle

1500 ml Bottle

1.6 DEPARTMENTS1. Administration & Human Resource Department

2. Manufacturing Department

3. Sales Department

4. Finance Department

5. Marketing Department

1.7 ORGANOGRAMME

Chairman

Mohammad Omran

Board of Director

Mohammad Abdullah Omran AL Omran

Board of Director

Omran Mohammad Abdullah Omran

AL Omran

Board of Director

Hussain Rahma Hussain AL Zaabi

Financial Controller

D. K. Dhawan

Marketing Consultant

Mr. Samir

Technical Director

P. S. Dhawan

COO(Pakistan)

Mr. Fostinio Mansing

G M Operation & Sales (Korangi)

Mr. Salim Yousuf

G MMakli Plant

Mr. Nasir Mushtaq

G. M Admin, Purchase, HR

Logistic & Store

Syed Sohail Ahmed

Finance Manager

Mr. Lajpat Khatri

Production Head

Engineer Blow

MoldingMaintenance

HeadMaintenance

Head

Production Head

Assistant Manager Store

Arif Hassan

Assistant ManagerAdmin, Purchase,

HR & Logistic

Syeda Mehwish Shah

Manager Quality Control

2.1 OVERVIEWMaaza Pakistan (Pvt) Ltd. has a finance department which covers all the

concepts of finance like time, money and risk and how they are related. Al Omran group

is the main facilitator of funding. They are managing the financial assets with careful

attention to financial risk management to control financial risk.

They hired highly qualified personnel for their finance department. They have

staff of eight people in finance department, out of these 6 are ICMA qualified and two are

bachelor of commerce.

2.2 ORGANOGRAMMEFinance Manager

Mr. Lajpat Khatri

Manager Account

Mr. Narsing Das

Cashier

Mr. Mohammad Ashraf

Assistant Manager Accounts

Mr. Mohammad Arif

Accounts Executive Receivable

Miss Kulsom Ali

Accounts Executive Payable

Mr. Narish Kumar

Accountant

Junior Accountant

Mr. Abdul Latif

2.3 JOB DescriptionFinance Department

2.3.1 FINANCE MANAGER

A financial manager is responsible to establish and maintain financial and

management procedures for Maaza Pakistan (Pvt) Ltd.

Ensure compliance with all regulatory requirements as relating to Company Rule

& regulation.

Providing financial advice and support to company to make sound business

decisions.

Clear budgetary planning is essential to be able to plan for the future, both short

and long term; companies need to know the financial implications of any decision

before proceeding.

Financial managers may also be known as financial analysts or business analysts.

Providing and interpreting financial information.

Business modeling and forecasting.

Monitoring performance and efficiency.

Analyzing change and conducting risk assessment.

Participating in strategic planning, and formulating long-term business plans.

Pricing and competitor analysis.

Developing complex finance models.

Assessing the financial implications of new or existing ventures.

Conducting reviews and evaluations for cost-reduction opportunities.

Preparing accounts and reconciling balance sheets.

Overseeing budgetary control.

Monitoring cash flow.

Supervising other staff.

2.3.2 MANAGER ACCOUNTS

Apply professional accounting standards, methods and procedures to analyze and

make recommendations concerning accuracy of accounting systems, management

controls and operating procedures.

Analyze, reconcile and consolidate vouchers, records, journals, ledgers and

statements.

Monitor expenditures to ensure compliance with budgetary recommendations.

Review financial transactions and codes for conformance to standard procedures

and accounts.

Compile, analyze and prepare a variety of statements and reports for use in

financial, budget and personnel planning.

Develop cost projections based on past records and anticipated activities and

makes fiscally sound recommendations.

Apply standardized accounting principles and practices.

Prepare and interpret a variety of financial reports and statements.

Review and apply tax laws.

Co-ordinate with the Finance Manager.

2.3.3 ACCOUNTS EXECUTIVE RECEIVABLE

Assure timely collection of monies due to corporation.

Monitor and report on deviations from credit standards.

Assure timely and accurate invoicing.

Manage cash application making sure all cash receipts are applied properly

Assure that the companies standard template regarding invoice sample is in

place for every customer

Conduct credit checks on all customer, establish and manage limits

Make recommendations to improve quality of invoicing and collection

procedures.

Weekly reporting of invoicing totals/aging totals/cash receipts/invoice

adjustments

2.3.4 ACCOUNTS EXECUTIVE PAYABLE

Manages accounting functions including maintenance of general ledger, accounts

Payable, accounts receivable, and project accounting; ensures accuracy and

timeliness.

Develops implements and maintains systems, procedures and policies, including

accounts payable functions to ensure adherence to company guidelines.

Manages monthly closing of financial records and posting of month end

information; ensures accuracy of financial statements.

Enters status change information into project accounting software to ensure

employee information is accurate and up to date.

Provides accounting assistance to project managers and operations staff; responds

to financial questions/concerns to meet business needs.

Acts as a liaison between the company, government and external accountants to

meet information needs and to ensure that proper information is maintained for

historical purposes.

2.3.5 ACCOUTANT

Analyze financial information and prepare financial reports to determine or

maintain record of assets, liabilities, profit and loss, tax liability, or other financial

activities within an organization.

Compile and analyze financial information to prepare entries to accounts, such as

general ledger accounts, and document business transactions.

Establish, maintain, and coordinate the implementation of accounting and

accounting control procedures.

Explain billing invoices and accounting policies to staff, vendors and clients.

Resolve accounting discrepancies.

Other duties as assigned

2.3.6 CASHIER

Handling of day to day cash

Maintain salary record

Maintain Bank transaction

Daily cash closing report

Weekly & Monthly cash report

Sales cash record.

2.4 FinancialsAccording to the Finance Manager Mr. Lajpat Khatri, they are facing a severe

financial crunch. Since the operation of Maaza in Pakistan they never generate a profit in

a single year. They are suffering a seriously financial losses and the owner of Maaza

Pakistan (Pvt) Ltd. generating revenue from its other companies and he is trying to make

this company as profitable company. The Chairman of Maaza Pakistan (Pvt) Ltd. Mr.

Mohammad Omran invests 350 million in running year and planning for 50 million more

in the coming year.

They are not giving me their Last year’s financial reports by giving me two

arguments.

1 They are private limited company, so they are not supposed to disclose their

financial record.

2 The company facing series of losing of losses in past years that’s why they are

making their statement Public.

Mr. Khatri discloses information of Finance department on the term of not

to ask the written record.

2.4.1 CASH HANDLING

They are doing their business on 100% advance payment. Once they get payment

for the order then they dispatch the goods. They avoid direct cash and handle the

day to day cash in the form of

a. Pay Order

b. Demand Draft

c. Cheques

d. Online Transaction etc…

It means they are handling the cash through Banks.

They are now doing direct sale in the local market through their 10 vehicles. In

this vehicle they have a staff of three persons.

a. Stock In charge

b. Security Guard

c. Driver

The cashier is the responsible for checking the stock which goes out in the

morning and collects the amount for sale stock and counts the remaining stock

and kept it in store. They are doing through own build Performa. Once the cashier

collects the amount he deposited that amount in the bank on next day.

2.4.2 INVENTORY MANAGEMENT

The company previously stores the pulp of the seasonal fruits in their cold

storage so they have their own inventory for their whole year. But they change the pattern

and shut down the operation of storing pulp in the cold storage and now they purchased

their raw material from the market.

2.4.2.1 FOR PULP

They have the stock of 30 days

They book their order on monthly basis.

The lead time for lead time is 2 to 3 days. Stock can also be

available on 24 hour prompt request.

They have the safety stock of 1 week to 15 days.

2.4.2.2 FOR CONCENTRATE

It is originated in Sharjah in Maaza International LLC.

They have a stock of 3 months.

The lead time for the concentrate is 30 to 40 days.

They have a safety stock of 20 to 30 days.

They store their finish goods of 2 months as an additional safety stock in case of

any emergency to fulfill the demand of market.

2.4.3 CREDIT POLICY

They are recently started to supply goods in the market on credit basis. They are

doing this on very limited scale and supply their product only to renowned Retailers like

Makro, D-Mart, Agha’s etc… They supply their products on 30 days credit terms.

2.4.4 SOME FINANCIAL FIGURES

Sales in the years 2007 1.85 million

Inventory Turnover 30-40 days

Current Ratio Not even one

Quick Ratio Not even one

Total Asset Turnover 0.1

Average collection period 30 days

Profit Margin on sale Negative

3. SWOC Analysis

STRENGTH

The strengths of Maaza Pakistan (Pvt) Ltd are:

6. They are renowned in the local as well as international market for their

Mango Juices

7. They are backed by the Al-Omran group of companies which make them

financial very strong.

8. They are the pioneer locally producing company to provide juice in PET

bottle.

WEAKNESS

1. They are lacking in their long term planning because they are storing their

whole year stock in their cold storage but they shut down this operation

without any reason and now again they plan to start that process.

2. No body knows about their future product / upcoming product because

they told me that they going to launch Yakhnee and Tomato Ketchup in

near future. When I ask them why you are doing so they said that it’s our

chairman order. On my personal analysis it is neither the By-Product of

any of their Original product nor they are experienced in this field.

3. They are shifting their business from Korangi to Makli (Thatta). It means

they are moving from the Hub of business.

4. Weak distribution channels.

5. No Research and Development Department

OPPORTUNITY

1. They have an opportunity to penetrate in the market of Afghanistan &

Bangladesh.

2. If they launched their juice in cans then they are only local company to

produce juices in cans at low price. So they can beat the RANI because

they importing their product from abroad.

3. They have an opportunity to launched Pineapple Juice because there is no

Pineapple juice available in the market.

4. They have carbonated line, so they can enters in the market of carbonated

drinks.

CHALLENGES

1. They had to over come from their series of Losses since they established

their business in the market.

2. Shifting from Korangi to Makli will affect their sales.

3. New competitors are arrived in the market in the form of Coca Cola.

SWOC ANALYSIS1. Renowned for Mango Juice 1. Lack of Long term Planning2. Backed by Al Omran Group 2. No body Know about Future

product.3. Pioneer local company to 3. Shift from Korangi to Makli provide juice in PET bottle

4. Weak distribution channels 5. No R&D department

1. Penetrate in the market of 1. Over come the Financial Crisis Afghanistan & Bangladesh. 2. Juice in cans at low price 2. Shifting affect their sales3. Launched Pineapple Juice 3. New competitors4. Enters in the market of

carbonated drinks.

4. CONCLUSION Maaza Pakistan (Pvt) limited operating with handsome budget but they are not

generating profit since they enters in the market. Following are the conclusions which

I drawn during my report.

1. Maaza Pakistan (Pvt) limited does not focus on their mainstream products.

They are trying to develop new product.

2. They are low in communication through electronic media as well as print

media.

3. Autocratic types of decision making

4. Lack of awareness in workers about their own product.

5. Hygienic conditions are not satisfactory.

6. Lack of motivation in the staff.

7. They have very weak distribution channels in interior Sindh.

5. RECOMMENDATION 1. Maaza Pakistan (Pvt) limited should focus on their main stream product

and try to develop strong distribution channel in the market of interior

Sindh.

2. Maaza Pakistan (Pvt) limited should be fast in communication through

electronic and print media.

3. Maaza Pakistan (Pvt) limited should develop Research and Development

Department.

4. Market Research should be done before launching a new product.

5. Motivational skill should be performed among the staff.

6. Maaza Pakistan (Pvt) limited should share new ideas with their staff

regarding product width.

7. Maaza International should consult Maaza Pakistan (Pvt) limited’s

Management before implementing changes within their company.

8. Hygienic conditions should be improved for better work place

environment.