2019

UNIVERSITY OF THE PUNJAB, GUJRANWALA

CAMPUS

ASSIGNMENT

SUBJECT:
Analysis of Financial Statements.

COMPANY:
PAKISTAN ENGINEERING COMPANY LTD.

SUBMITTED TO:
SIR. SARWAR

Zeeshan Ul Haq
Roll No: BBF16019
 PAKISTAN ENGINEERING
COMPANY

INTRODUCTION

Pakistan Engineering Company Limited is a State Enterprise controlled

by the Ministry of Industries & Production, Government of Pakistan. It
is the Premier and leading Engineering Company which manufactures
high quality steel re-rolled material and light engineering products.
PECO products have earned a sound reputation in the market because
of high quality, workmanship, efficiency, durability and guaranteed
prompt after sales service. PECO's majority share holding is with private
sector, and as per Government policy, it is now Public Private
Partnership. PECO has got ISO-9001:2008 Certification for its products.
 HISTORY

Incorporated in year 1950, three years after the independence of

Pakistan in 1947. Setup by an entrepreneur migrated from India and
was the pioneer light engineering products company listed on the stock
exchanges of the country in the name of Batala Engineering Company
(BECO). Within a period of fifteen years it became leader in light
engineering goods manufacturing with the help of European &
American technology and their team of engineers to produce High
Quality Machine Tools, Pumps, Power Looms, Concrete Mixers, Cranes,
Power Presses, Electric Motors, Bicycles, Steel Rolled Products,
Electricity Transmission Towers, Structure and General Fabrication.

The industry was set up at Badami Bagh, old city of Lahore on land area
of 34 acres, and whole adjacent area was subsequently converted into
steel center of Pakistan. Due to rapid addition of products, the land
area became in-sufficient for further expansion. In the same city of
Lahore 247 acres land was acquired in 1960 at Kot Lakhpat industrial
zone, for further expansion.
 PRODUCTS

1- TELECOMMUNICATION TOWER
PECO has designed and manufactured telecommunication towers for Pakistan
Telecommunication Company, Pakistan Rangers, Pakistan Railways, Civil Aviation,
NLC, SNGPL, M/s Alan Dick UK, Huawei Technologies Pvt. Ltd, and M/s ZTE
Corporation Pvt. Ltd, China.

TYPES OF TELECOMMUNICATION TOWER:

 Green Field Lattice Steel Towers

 Roof Top Lettice Steel Towers
 Green Field Tubular Towers
 Roof Top Tublar Towers
 Guy Supported Towers
 2-Transmission Line Towers
PECO started manufacturing electricity Transmission Line Tower in 1964. The
Company has the advantage of having all in-house facilities for production of
tower i.e. steel re rolling, fabrication, galvanizing, designing and testing. No other
company in Pakistan has complete range of in-house facilities for production of
transmission line towers under one roof. Our present product line consists of
11Kv, 132Kv, 220 Kv and 500Kv transmission line towers. PECO is the only
Company in Pakistan to make 500kv single and double circuit towers.
3-Electric Motors
PECO Electric Motor Division was established in 1962 with the technical
collaboration of M/s NEWMAN of United kingdom. PECO products are designed
and manufactured keeping in view the specific local conditions and demands,
robust in construction, reliable in performance. Thousands of PECO motors in use
since start are a sure testimony to our claims of excellent quality and
performance. As basic drive elements, PECO motors are first choice for
machinery, plants and machine tools, in agriculture machinery and pumps of all
sorts, in fans and compressors, in the tough duty requirements on conveyors and
material handing equipment etc.
4-Pumps And Turbines
This Division was established in 1953 in collaboration with German Firm M/S KSB
to manufacture Centrifugal and Deep Well Turbines. In 1959 an agreement for
technical collaboration with M/S Jaccuzi Bros. Inc. of USA was concluded for Deep
Well and Submersible Turbine Pumps. The division has complete testing facilities
and qualified mechanical and hydraulic engineers. Pumps division produces
Centrifugal, Turbines and Submersible Pumps for various depth and discharge
heads as per requirement of our valued customers. Pump line also include non
clogging/industrial pumps of various capacities for sugar/ chemical industry. Total
components are being manufactured in house.
SUMMARY OF AUDITOR’S REPORT
(FOR PREVIOUS 5 YEARS)

We have audited the annexed Unconsolidated financial statements comprising

Unconsolidated balance sheet of Pakistan Engineering Company LTD as at 30 June
2014 , 30 June 2015 , 30 June 2016 , 30 June 2017 and the related profit and loss
account, statement of comprehensive income,cash flow statement and statement
of changes in equity together with the notes forming part thereof, for the year
then ended.These financial statements are the financial statements based on our
audit. Our audit was conducted in accordance with the International Standards on
Auditing and accordingly included such tests of accounting records and such other
auditing procedures as we considered necessary in the circumstances. In our
opinion, the Unconsolidated financial statements present fairly the financial
position of the Company as at 30 June 2014 , 2015,2016,2017 and the results of
their operations for the year then ended.

In 2018 after following IAS rules the renew Pakistan Act 2017 also followed by
auditors in this a new rule of closing key audit point also exist In our opinion and
respectively give a true and fair view of the state of the Company's affairs as at 30
June 2018 and of the loss other comprehensive income, the changes in equity and
its cash flows for the year then ended.