UNIVERSITY OF CENTRAL PUNJAB

SPRING 2020

PROJECT APPRAISAL & CREDIT MANAGEMENT

M.COM MORNING

ASSIGNMENT: 2

SECTION: A
SUBMITTED TO:
PROF. AZFAR ALI

SUBMITTED BY:
Rimsha Suhail Butt L1F18MCOM7065

Submission Date: 23-April-2020

PACKAGES LIMITED:
Packages Limited is a Pakistani packaging company based in Lahore, Pakistan. The company
was founded in 1956. The company is known for their tissue brand, Rose Petal. The company is
listed on the Pakistan Stock Exchange.
Packages Limited is a Public interest company (PIC) and manufacturing concern that is involved
in the production and sale of packaging materials and tissue products. They also provide
comprehensive packaging solutions worldwide through creation and development of impactful
designs that build stronger brands.
(Question: 1)
What is the total investment in the company?
Answer
The total investment in the Packages Limited Company is Rs. 68,175,855000 in 2018. And it
includes total assets of the company as property plant & equipment, investment properties,
intangible assets, stock in trade, trade debts, cash & bank balances etc.

ASSETS Rs. (in 000)

Non-Current Assets:

Property, plant and equipment 6,546,461

Investment properties 111,613

Intangible assets 67,435

Investments 51,322,973

Long term security deposit 8,534

Long term loans 2,419

58,059,435

Current Assets:

Stores and spares 498,158

Stock in trade 3,124,998

Current portion of long term investments 10,000

 Trade debts 2,568,727
Loans, advances, deposits, prepayments and other
Receivables 834,800

Income tax receivable 3,017,221

Cash and bank balances 62,516

10,116,420

TOTAL ASSETS 68,175,855

(Question: 2)
What are the sources of finance of Packages Limited?
Answer
The sources of finance of Packages Limited Company in 2018 are from equity of Rs. 932650000
& all the non-current liabilities of Rs.2249226000 and current liabilities of Rs. 9,492,388000
of the company. The total detail of sources of finance of Packages Ltd is as follows:

EQUITY AND LIABILITIES Rs. (in 000)

Capital and Reserves:

Authorized Capital:
150,000,000 (2017: 150,000,000) ordinary shares of Rs. 10
each 1,500,000
22,000,000 (2017: 22,000,000) 10% non-voting preference
shares / convertible stock of Rs. 190 each 4,180,000

Issued, Subscribed and Paid up Capital:

89,379,504 (2017: 89,379,504) ordinary shares of Rs. 10 each
893,795
8,186,842 (2017: 8,186,842) 10% non-voting preference
shares / convertible stock of Rs. 190 each 606,222
Reserves 51,550,397

Un-appropriated profit 3,383,827

932,650

Non-Current Liabilities:

Long term finances 932,650

Liabilities against assets subject to finance lease ---

Long term advances 87,283

Deferred taxation 361,603

Retirement benefits 511,602

Deferred liabilities 356,088

2,249,226

Current Liabilities:

Current portion of non-current liabilities 1,328,642

Finances under mark-up arrangements – secured 4,414,019

Trade and other payables 3,438,345

Unclaimed dividend 62,030

Accrued finance cost 249,352

9,492,388

Contingencies and Commitments ---

TOTAL EQUITY & LIABILITIES 68,175,855

(Question: 3)
 What are details of property plant & equipment with cost?
Answer
The detail of property plant & equipment of Rs. 6546461000 with cost in 2018 is as follows:
PROPERTY, PLANT AND EQUIPMENT:
Operating Fixed Assets: (Rs. In 000)
Owned Assets 5405501
Assets subject to Finance Lease –
5,405,501
Capital Work-in-Progress 1,081,755
Major spare parts and stand-by Equipment 59,205
6,546,461

Book value as
Owned Assets at December
31, 2018
(Rs. In 000)

Freehold land 250,555

Leasehold land 67,567

Buildings on freehold land 431,996

Buildings on leasehold land 72,314

Plant and machinery 3,996,868

Other equipment (computers, lab equipment and other office 269,396

equipment)

Furniture and fixtures 6,342

 Vehicles 310,463

TOTAL 5,405,501

(Question: 4)
What are the details of stock?
Answer
The details of stock in trade Rs. 3124998000 of Packages Limited 2018 are as follows:
STOCK-IN-TRADE: (Rs. In 000)
Raw Materials (including in transit Rs. 320.827 million) 2,095,429
Work-in-Process 708,937
Finished Goods 368,701
3,173,067
Provision for obsolete / slow-moving stock-in-trade (48,069)
3,124,998