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INTRODUCTION OF PROJECT
This project is written on the descriptive analysis of shezan international limited. And provides information about the following aspects related to company as under; 1. Introduction of shezan international limited 2. Companys Chairmans review 3. Industry Review 4. Descriptions of: a. b. c. d. e. f. g. 5. a. b. c. d. e. f. Assets Depreciation Liabilities Equity and Retained Earnings Cash Flow statement Inventories Taxation Attachments of: Income Statements Balance Sheet Cash Flow Statement Form of Proxy Pattern of Shareholding of Shareholders Pattern of Shareholding as per requirements of Code of Corporate Governance

COMPANY INTRODUCTION
The company was incorporated on may 30 1964 as a private limited concern and initially conceived as a joint venture with alliance industrial development corporation of USA for processing citrus and fruits as well as bottling of juices. In 1971 shahnawaz group purchased all the shares of alliance industrial development corporation with the permission of Pakistan government and form a joint venture company it became a fully Pakistani owned company. The company has shown sustained growth in both the domestic and export fields. The company has been steadily expanding its production capacity over the years. In 1980-81 a separate unit was installed in Karachi, which now caters for Karachi, Sind and export demand. A new bottling filling plant was set up in 1983 in the Lahore unit increasing the capacity five-flod. An independent tetra brick plant was commissioned in 1987 making the unit leading manufacturers with comprehensive range of production in fruit-processing field in Pakistan. The company is engaged in manufacture and sale of juices, beverage, pickles, preserves and flavorings based upon or derived from fresh fruits and vegetables.

VISION
To be known as leader of quality products in the region. Dedication to quality is a way of life at our company, so much so that it goes far beyond rhetorical slogans. It is the objective of shezan international limited to produce and provide products and services of the highest quality. In its activities the company will pursue goals aimed at the achievement of quality excellence and succeed as a profitable business. These results will be derived from the dedicated efforts of each employee in conjunction with supportive participation from management at all levels of the company.

MISSION
Our mission is to provide the highest quality fruit and vegetable related juices and products to retail and food service customers. We want to be the recognize industry leader in quality and service, providing more than expected for our customers, employees and stakeholders. We will accomplish this by maintaining a tradition of pride in our products, growth through innovation, integrity in the management of our business, and commitment to Team Management and the Quality Improvement Process.

OBJECTIVES
The organization is interested in providing the quality products at lower price, and attaining the highest levels of performance and generally in meeting the interested group requirements set out. The objectives of the organization include: 1) CREDIBILITY

In the whole of society, there is a need for credibility in information and information systems. 2) PROFESSIONALISM

The customers, employees and other interested parties can rely on the professionalism of the organization. 3) QUALITY OF SERVICE

There is a need for assurance that all services provided are carried out to the highest standards of performance.

4)

CONFIDENCE

Interested groups should be able to feel confident that there exists a framework of professional ethics, which governs the provision of services provided by the organization to the community and the country. All the above stated objects are the need of the company. Shezan international limited is the organization that will work on the desired objectives and will attain the status that it desires in the industry of juices.

CHAIRMANS REVIEW:
Mr. MUHAMMAD KHALID said We are thankful to the valuable consumers for their continuous loyalties to our products, the shareholders for their trust and confidence in us, and place on record our appreciation for the commitment, devotion to duty and hard work of the officers and workers of all categories.

INDUSTRY REVIEW
Pakistan is blessed with a climate ideally suited to the farming of all kinds of fruit rich in taste and flavor; sweet; mellow and juicy. For centuries Pakistani farmers have been developing newer strains of fruit by grafting one exotic variety with another. Shezan is the largest processor of fresh fruits and vegetables in the country. The fruits processed by them come both from their own prize winning fruit farms and other selected orchards. Natures goodness is meticulously preserved by shezan. The processing is carried out by qualified food technologists in shezans ultra modern plants at Karachi ,Lahore and hattar.

COMPANY PROFILE
Board of Directors: Mr. Muneer Nawaz Mr. Saifi Chaudhry Mr. Mahmood Nawaz Mr. C.M. Khalid Mr. Amtul Hai Khalid Mr. M. Naeem Mr. Muhammad Khalid Chairman Chief Executive Director -do-do-do-do-

Mr. Shamshad Ahmad N.I.T Nominee Mr. Muhammad Asif Director & Company Secretary: Mr. Muhammad Khalid Chief Financial Officer Mr. Faisl Ahmad Nisar, Audit Committee Mr. Muneer Nawaz Mr. Muhammad Khalid Mr.Muhammad Asif Auditors Messrs. Ford Rhodes Sidat Hyder & Co. Chartered Accountants, Mall View Building, 4- Bank Square, Lahore. Chairman Member Member FCA N.I.T Nominee

Bankers: United Bank Limited Muslim Commercial Bank Limited National Bank of Pakistan The Bank of Khyber Habib Bank Limited Bank Al-Habib Limited Head Office: 56- Bund Road Lahore-54500 Phone: (92) 042-7466900-04 Faxes: (92) 042-7466899 & 7466895 Email: shezan@brain.net.pk Website: www.shezan.com Factories 1) 56- Bund Road, Lahore-54500

Phone: (92) 042-7466900-04 Faxes: (92) 042-7466899 & 7466895 Email: shezan@brain.net.pk 2) Plot No. L-9 Block No. 22, Federal B, Industrial Area, Karachi -75950 Phones:(021)6344722-23. Faxes: (021)6313790. Email: shezan@cyber.com 3) Plot No. 33-34, Phase III, Hattar Industries Estate, Hattar. Phones:(0995) 617158 & 617343 Faxes:(0995) 617342. Email: sil-htr@shezan.com Share Registrar: Messrs. Corp Link (Private) Limited, Wings Arcade, 1-K, Commercial, Model Town, Lahore. Legal Advisor: Messrs. Cornelius, Lane & Mufti. Nawa-e-Waqt Building, Shahrah-e-Fatima Jinnah, Lahore.

MEETINGS

During the year 2008-09, five board meetings were held which were attended as follows: Mr. Muneer Nawaz Mr. Saifi Chaudhry Sh. Mahmood Nawaz Mr. Amtul Hai Khalid Mr. M. Naeem Mr. C. M. Khalid Mr. Muhammad Khalid Mr. Muhammad Nawaz Tishna Mr. Muhammad Asif Mr. Shamshad Ahmad Chairman/Chief Executive Nominee of NIT LTD Director -do-do-do-do-do-do-do3 2 2 5 1 5 3 4 4

DESCRIPTIVE ANALYSIS
ASSETS OF COMPANY NON-CURRENT ASSETS:Shezan international limited owns the following Fixed Assets. Freehold land Leasehold land Buildings on freehold land Buildings on leasehold land Plant and machinery Furniture and fixture Moter vehicles and bicycle Electric fittings and tools Electric equipment Laboratory equipment

Frok lifts Computers and accessories Arms and ammunitions Investment in associate investment available for sale long term deposits and prepayments

DESCRIPTIONS: Shezan international limited have freehold land of amounted Rs.37,098,000. We dont charge any depreciation on land as it is an appreciable asset. We have posses leasehold land of RS.1,802,000. And charge no deprication on land because it is appreable asset.We posses building on freehold land amounted Rs. 8,208,000 after charging depreciation @ 10%. We posses building on leasehold land amounted Rs.8,947,000 after charging depreciation @ 10%.We owned plant &machinery amounted Rs.142,496,000 after charging deprication @ 12.5%.. we have furniture &fixtures amounted RS.482,000 after charging deprication @ 15%. We have motor vehicles and bicycles of amounted RS.44,246,000.after charging deprication @20%. We have electic fittings and tools amounted RS.1,952,000 after charging deprication 10-25%. We have electric equipment amounted RS.17,827,000 after charging deprication@ 15%. We have laboratory equipment of Rs.745,000 after charging depreciation @ 10%. We have frok lifts amounted RS.9,105,000 after charging deprication @ 20%.we have computer and accessories amounted RS.2,608,000 after charging 33.33%deprication. We have arms & ammunitions of amounted RS.4,000 after charging deprication @20%. Plant & machinery of Rs. 27,800,000 after charging depreciation @ 12.5%. Vehicles amounted Rs. 808,000 after charging depreciation @ 20%. Deprication is charged at reducing balance method

CAPITAL WORK IN PROGRESS:-

The opening balance of capital work in progress is amounted Rs. 7,706,000. Additions during the year amounted Rs 19,591,000. And transferred to operating property, plant and equipment is RS.15,486,000 .So the ending work in progress is 4,105,000. LONG TERM DEPOSITS:The lease companies amounted RS.0.and others amounted RS.2,661,000.SO the long term deposits are RS.2,661,000. Which was for RS.2603,000 in 2008. CURRENT ASSSETS Our company owns following current assets. Stores, spare parts Stock in trade Trade debts Advances ,deposits, prepayments and other receivables Income tax recoverable Cash and bank balances The stores of the company are Rs.8,841,000. And the spare parts amounted Rs. 9,955,000 and total amounted of RS.18,796,000 for the year 2009 which was RS.1,091,000 in the year 2008. Trade debts of the company are RS 86,291,000 for the year 2009 and that was amounted RS 74,892,000 in 2008. Advances to different parties and employees are amounted Rs. 14,633,000. Short term Trade deposits for the year 2009 are RS. 7194,000 and short term prepayments totaled Rs. 12,730,000 for the year 2009. Accrued profit for the year 2009 is RS.81,000. Advance excise duty for the year is RS. 372,000. Wealth tax recoverable for the year amounted RS.140,000. Sales tax refundable for the year amounted RS.1,963,000. And the income tax recoverble by the company totaled Rs. 74,651,000 and for that was RS.114,255,000 in the previous year . Cash and bank balances of the company are RS.70,844,000.

DISCRIPTIONS

DEPRECIATION:-

Depreciation on property, plant and equipment is charged to profit and loss account applying the reducing balance method so as to write off the cost/ depreciable amount of the assets over their estimated useful lives. Depreciation on additions is charged from the month in which the assets were available for use up to the month in which the assets was disposed off. The residual values and useful lives are reviewed by the management, at each financial year-end and adjusted if impact on depreciation is significant. LIABILITIES OF THE COMPANY NON-CURRENT LIABILITIES Liabilities against assets subject to finance lease. Deferred taxation

DESCREPTIONS:The liabilities in 2009 was Rs. 543,000 and these was Rs. 4,429,000 for previous year 2008 and the interest rate used as the discounting factor ranges from 12.12% to 18.15% (2008;12.12% to 13.25%) per annum. Minimum lease payments for year 2009 is Rs. 4,695,000 and their present value Rs. 4,412,000 and in 2008 minimum lease payment were Rs. 29,905,000 and their present value were Rs. 27,817,000. The deferred taxation for the year 2009 totaled Rs.45,419,000 and these were Rs. 47,429,000 . CURRENT LIABILTIES: Trade and other payables Accrued markup on Short term borrowings. Short term borrowings secured Current portion of liabilities against assets subject to finance lease Provision for taxation

DESCREPTIONS:-

The balance of the trade and the other payables for the year 2009 amounted Rs.392,371,000 for the year 2008 amounted Rs. 338,208,000. Accrued markup of the company on short term borrowing for the year 2009 Rs. 393,000 and for the year 2008 amounted Rs. 16,000. Companys short term borrowings secured for the year 2009 amounted Rs.30, 228,000. The current portion of long term liabilities against assets subject to finance lease amounted 3,869,000 and for the year 2008 these were amounted Rs. 23,388,000. The provision for taxation amounted to Rs.103,742,000 and provision for taxation for the year 2008 amounted Rs. 157,885,000. EQUITY AND RETAINED EARNINGS:SHARE CAPITAL AND RESERVES:The authorized number of shares 10,000,000 shares @ Rs. 10/- each amounted Rs.100, 000,000. Issued , subscribed and paid up capital Rs.60,000,000. The capital reserves amounted Rs.5,000,000 and general reserves amounted Rs. 580,000,000 and that was Rs. 495,000,000 in previous year. and unappropriated profits for the year 2009 amounted Rs. 45,962,000 that was amounted Rs. 51,858,000. CASH FLOWS: Cash from operating activities Cash from investing activities Cash from financing activities

DESCRIPTIONS:In year 2009 the cash flow from different operating activities totaled Rs.113,454,000 and that was Rs. 119,039,000 in 2008. The cash used by the company from investing activities are of Rs.(43,338,000) that was amounted Rs. (54,104,000) in 2008. The net cash used in financing activities are of Rs. (83,314,000) that was used in 2008 amounted Rs.(89,079,000). Net decrease in cash and cash equivalents for the year 2009 are of Rs. (13,198,000). The opening cash

and cash of the year are of Rs.84,042,000. The total cash and cash equivalents at the end of the year 2009 amounted Rs.70,844,000. INVENTORY:As stated in under the head of Current Assets, Raw Material showed the balance of Rs. 73,822,000. Which was showing the balance of Rs. 39,740,000 in the year 2008. Work in Progress had a value amounting to Rs. 4,105,000. Finished Goods inventory showed the balance of Rs. 84,467,000 in the year 2009 and amounted Rs. 46,593,000. Taxation Provision of current taxation for the year 2009 amounted Rs.103,742,000 and for the previous year that amount was Rs.157,885,000 and amount paid in the form of tax for the year 2009 amounted RS.58,099,000 that was Rs.107,195,000 in 2008. CORPORATE GOVERNANCE As required by the code of corporate governance, the board of directors hereby declares that: 1) The Financial Statements for the year ended June 30, 2009 present fairly the state of affairs, the result of its operations, cash flows and changes in equity. 2) Proper Books of Accounts have been maintained. 3) Appropriate Accounting Policies have been consistently applied in preparation of Financial Statements for the period ended on June 30, 2009. 4) International Accounting Standards (IAS) as applicable in Pakistan, have been followed in preparation of Financial Statements. 5) Internal Control is sound and has been effectively implemented. 6) There is no doubt about the company to continue as going concern.

ATTACHMENTS
1) INCOME STATEMENT 2) BALANCE SHEET 3) CASH FLOW STATEMENT 4) FORM OF PROXY 5) PATTERN OF SHAREHOLDING OF SHAREHOLDERS 6) PATTERN OF SHAREHOLDING AS PER REQUIREMENTS OF CODE OF CORPORATE GOVERNANCE