Rafhan Amended

“A Project of Business Law”

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Project Report

On

Application of Business and Labour Law in Faisalabad

By

Muhammad Muniam

Roll No. 10760

MBA IV (Morning)

Department of Management Sciences

National University of Modern Languages

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Faisalabad Pakistan

December 2011

Table of Contents

Sr. Subject Pg #

01. Acknowledgement 5

02. Dedication 6

03. Executive Summary 7

04. Introduction 8

05. Performance Statistics 9

06. Core values 11

07. Vision 12

08. Mission 12

09. Products 15

10. Location 17

11. Business laws 18

12. Labor Law 19

13. Child Labor 20

14. Implementation of labor laws 21

15. Health of workers 22

16. Safety of workers 23

17. Observation 25

18. Suggestion 26

19. Conclusion 27

20. Annex 28

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ACKNOWLEDGEMENT

First of all I offer my humble sense to “ALL MIGHTY ALLAH” The most beneficial,

gracious and merciful who enable me to perceive higher ideas of life and helped me

throughout my life especially in writing this report and all blessing to his favorite

PROPHET MUHAMMAD (PBUH) who is the greatest personality of this universe.

After I am thankful to my parents and family whose prayers encouraged me to

complete my task.

I am also extremely thankful to all of my teachers for their sympathetic treatment,

reward less help, precious suggestions, constant encouragement and personal interest

and kind guideline that enable to write the report.

At the end I would like to say special thank of Mr. Shahbaz Fareed who always

helped us in our studies when we needed.

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Dedication

To my Teachers,

The motivation for what I have done.

To my Parents,

Who always prayed for my success and their love and

affection have always been a source of inspiration for me.

To my Friends,

Who share their knowledge and experience with me in

learning process

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Executive Summary:

Executive summary summarizes the

Labor Laws Its application in Rafhan Maize Products Co. Ltd. Observation Suggestion

It includes the application of labor laws in Rafhan Maize Products Co. Ltd.

How they applicable labor laws on their employees?

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“A Project of Business Law”INTRODUCTION:

Rafhan Maize Products Co Ltd. It has started its business in 1853.The Company's

principal activities are to produce corn oil, industrial starches, liquid glucose,

dextrose, dextrin, gluten meals and other corn related products. The Company also

manufactures a wide-range of co-products such as gluten feeds, meals, germ cake and

hydro. The brand and products of the Company are PENETROSE, AMISOL, TEX-O-

FILM, and CERELOSE Dextrose and MOR-SWEET high maltose syrup.

Rafhan Maize Products Company Ltd. is located at Faisalabad, about 1100

kilometers north of Karachi, in Pakistan. The Company processes thousands of tons of

corn every year to produce high quality food ingredients and industrial products.

Rafhan Maize is the pioneer in producing diversified type of starches and sweeteners for multiple applications in more than 50 types of industries.

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Performance Statistics (Million Rupees)

Share Capital - Paid-up: 92.36

Reserves & Profit: 894.85 712.38

Shareholders Equity: 987.21 804.74

L.T. Debts: 2.39 2.23

Deferred Taxation: 66.03 37.62

Current Liabilities: 1,146.82 926.92

Tangible Fixed Assets: 777.67 765.78

L.T. Loans: 1.24 1.27

Deferred Cost: 7.08 9.16

Current Assets: 1,417.46 995.31

Total Assets: 2202.45 1771.51

Sales, Profit & Payout:

Sales: 2,805.67 2,691.94

Gross Profit: 671.81 580.71

Operating Profit: 571.89 485.93

Other Income: 35.26 21.27

Depreciation: 80.12 67.77

Financial Expenses: 73.39 64.03

Profit Before Taxation: 492.97 410.86

Profit After Taxation: 307.16 270.96

Dividend Cash 135% (1999 130%): 124.69 120.07

Earning Per Ordinary Share (Rs): 33.26 29.34

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“A Project of Business Law”Share Price (Rs) Dated 7/12/2000: 230.00 -

Financial Ratios:

Price/Earning Ratio: 6.91 -

Book Value Per Share: 106.88 97.71

Price/Book Value Ratio: 2.15 -

Debt/Equity Ratio: 0:100 0:100

Current Ratio: 1.24 1.07

Asset Turn Over Ratio: 1.27 1.51

Days Receivables: 17 19

Days Inventory: 191 118.65

Gross Profit Margin (%): 23.94 21.57

Operating Margin (%): 20.38 18.05

Net Profit Margin (%): 10.94 10.06

R.O.E. (%): 31.11 33.67

R.O.A. (%): 13.94 15.29

R.O.C.E. (%): 29.10 18.10

Plant Capacity & Production (Metric Tons):

Average Grind Capacity Per Day: 650 620

Grand Capacity Per Year of 350 Days: 227,500 217,000

Actual Days Worked: 348 345

Actual Grind: 223,532 214,136

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“A Project of Business Law”CORE VALUES:

Define and direct every decision we make and every action we take at Rafhan Maize.

INTEGRITY

We adhere to a code of conduct, which produces consistently ethical behavior.

EXCELLENCE

We do the right things in a superior manner while striving for continuous

improvement.

RESPECT

We deal with and treat others the way we want to be dealt with and treated.

FINANCIAL SUCCESS

We consistently focus on our business to create economic value today and into the

future.

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Vision Statement

“To be the premier of refined corn based products and ingredients in the region”

Mission Statement

“To grow business consistently through positive relationship with customers to attain

full customer satisfaction and to bring continuous improvement by adopting only

those business practices which add value to our customers, employees and share

holders.”

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Products

GLOBE CORN STARCHES

CORAGUM STARCHES

RAFHAN MAIZE STARCHES

SNOWFLAKE CORN STARCHES

SNOWFLAKE CORN FLOUR

GLOBE CORN STARCHES

SNOWFLAKE MODIFIED STARCHES

PENETROSE MODIFIED STARCHES

AMISOL OXIDISED STARCHES

Q-TAC CATIONIC STARCHES

TEX-O-FILM CORN STARCHES

TEX-O-FILM MODIFIED STARCHES

CORATEX-W SPECIALTY STARCH

CORATEX-P SPECIALTY STARCH

GLUGELPOWDER GLUES

RAFHAN DEXTRINS

CORAGUM DEXTRINS

CORAGUM POWDER/LIQUID ADHESIVES

CERELOSE DEXTROSE MONOHYDRATE

GLOBE GLUCOSE (CORN SYRUP)

RAFHAN LIQUID GLUCOSE

MOR-SWEET HIGH MALTOSE SYRUP

NU-BRU HIGH MALTOSE SYRUP

RAFHAN GOLDEN SYRUP

RAFHAN LIQUID CARAMEL COLOUR

ENZOSE HYDROL

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“A Project of Business Law” RAFHAN MAIZE GLUTEN MEALS/FEEDS

PRAIRIE GOLD MAIZE GLUTEN MEALS

RAFHAN CORN GERM MEALS

BUFFALO MAIZE BRAN

RAFHAN MAIZE OIL CAKE

MAZOFERM MAIZE STEEPING

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“A Project of Business Law”Consumer Industries

TEXTILE (SIZING & FINISHING), PAPER, CORRUGATION, CHEMICALS,

NON-FOOD.

PHARMACEUTICAL, CONFECTIONERY, BISCUITS, CONVENTIONAL

FOODS, DESSERTS, ICED-DESSERTS,

KULFI FALUDA.

JELLY CONFECTIONS, FOOD.

TEXTILE (SIZING & FINISHING), PAPER (BEATER ADDITIVE, SURFACE

SIZING, COATING), ADHESIVES.

PAPER, TEXTILE, CHEMICALS.

PAPERMAKING, PAPER CONVERSION, PAPER SACKS, ADHESIVES,

CARPET BACK SIZING.

TEXTILE SIZING (MODERN WEAVING)

TEXTILE QUALITY FINISHING.

FOUNDRY

PAPER CONVERSION, CORRUGATION, SPIRAL TUBE WINDING, PAPER

CONES TEXTILE SIZING & FINISHING, FOUNDRY, ADHESIVES, REED INK,

TOBACCO, LAMINATION.

PREPARED ADHESIVES.

FOOD ENERGY DRINKS, PHARMACEUTICALS, CONFECTIONERY,

BAKERY, ICED- DESSERTS, KETCHUPS, PICKLES, BREADS, SNACKS.

CONFECTIONERY, PHARMACEUTICAL, BAKING, SYRUPS & SQUASHES,

TOBACCO.

CONFECTIONERY, PROCESSED FOODS, SWEET-MEATS, SYRUPS &

SQUASHES.

BREWING.

FOOD, BAKING, BEVERAGES.

FOOD, BEVERAGES, PHARMACEUTICAL, BAKING.

FERMENTATION, TANNING, CHEMICALS, CONFECTIONERY, BAKERY.

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POULTRY FEEDS, LIVESTOCK FEEDS, AQUA FEEDS

CATTLE FEEDS AND OTHER LIVESTOCK FEEDINGS.

POULTRY/CATTLE/FISH FEEDS, ANTIBIOTICS.

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Location

Rafhan Maize Products Co. Ltd.

Corporate

Headquarters

& Plant:

Registered & Regional

Office:

Rakh Canal East

Road, P.O. Box

62,

1st Floor, Finlay House, I.I.

Chundrigar Road,

Faisalabad -

38060

Karachi - 74000

Pakistan Pakistan

Tel: (0092) 41-

8540121-22-23

Fax:(0092) 41-

8711016

Tel: (0092) 21-2442516,

2427731

Fax:(0092) 21-2428651

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BUSINESS LAWS

Business law encompasses the law governing contracts, sales, commercial paper,

agency and employment law, business organizations, property, and bailment. Other

popular areas include insurance, wills and estate planning, and consumer and creditor

protection. Business law may include issues such as starting, selling, or buying a

small business, managing a business, dealing with employees, or dealing with

contracts, among others.

The Uniform Commercial Code (UCC), which governs sales and commercial paper,

has been adopted in some form by almost all states. There are agencies at the state and

federal level which administer the law in such issues such as employment affairs and

consumer and credit protection. The laws aim to protect fair business practices and

due process rights for aggrieved workers and others.

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LABOR LAWS IN FACTORIES

Labor law (or employment law) is the body of laws, administrative rulings, and

precedents which address the legal rights of, and restrictions on, working people and

their organizations. As such, it mediates many aspects of the relationship between

trade unions, employers and employees. In Canada, employment laws related to

unionized workplaces are differentiated from those relating to particular individuals.

In most countries however, no such distinction is made.

However, there are two broad categories of labor law. First, collective labor law

relates to the tripartite relationship between employee, employer and union. Second,

individual labor law concerns employees' rights at work and through the contract for

work. The labor movement has been instrumental in the enacting of laws protecting

labor rights in the 19th and 20th centuries. Labor rights have been integral to the

social and economic development since the industrial revolution

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http://en.wikipedia.org/wiki/Industrial_revolution

http://en.wikipedia.org/wiki/Labor_rights

http://en.wikipedia.org/wiki/Labor_movement

http://en.wikipedia.org/wiki/Contract

http://en.wikipedia.org/wiki/Canada

http://en.wikipedia.org/wiki/Trade_unions

http://en.wikipedia.org/wiki/Working_people

http://en.wikipedia.org/wiki/Law

“A Project of Business Law”CHILD LABOR

The term "child labor" is often defined as work that deprives children of their

childhood, their potential and their dignity, and that is harmful to physical and mental

development.

It refers to work that:

is mentally, physically, socially or morally dangerous and harmful to children;

and

interferes with their schooling by:

depriving them of the opportunity to attend school;

obliging them to leave school prematurely; or

Requiring them to attempt to combine school attendance with excessively long

and heavy work.

In its most extreme forms, child labor involves children being enslaved, separated

from their families, exposed to serious hazards and illnesses and/or left to fend for

themselves on the streets of large cities – often at a very early age. Whether or not

particular forms of "work" can be called "child labor" depends on the child's age, the

type and hours of work performed, the conditions under which it is performed and the

objectives pursued by individual countries. The answer varies from country to

country, as well as among sectors within countries. Not all work done by children

should be classified as child labor that is to be targeted for elimination. Children’s or

adolescents’ participation in work that does not affect their health and personal

development or interfere with their schooling is generally regarded as being

something positive. This includes activities such as helping their parents around the

home, assisting in a family business or earning pocket money outside school hours

and during school holidays.

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LABOR Laws Implemented In Rafhan Maize Products Co. Ltd.

Health of workers

1-Cleanliness:-

Rafhan Maize Products Co. Ltd. hire employees for cleaning purpose; their duty is to

clean each department daily, as clean atmosphere keep away workers from diseases.

Dirt and refuse are removed daily by effective methods.

2:-Disposal of water:-

As we use various dyes/chemicals which are harmful for health, so we keep treatment

plant which clean water from the effect of these harmful dyes/chemicals before

disposal.

3:-Ventilation and temperature:-

We have many ventilators according to the requirement of each department we have

underground air system which keep the temperature normal in the entire production

department.

4:-Dust and fumes

To keep away our workers from dust and fumes. We provide them dust mask which

keep them safe from dust and fumes.

5:-Overcrowding

To avoid overcrowding we install each machine at a reasonable distance.

Overcrowding is injurious to the health of work men.

6:- Lighting:-

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“A Project of Business Law”The proper arrangement of lighting is available at every machine, so that workers do

not feel stress on their eyes while working.

7:- drinking water:-

We bring water from canals which are good for health. Moreover we have a softener

plant which makes the water drinkable.

8:- vaccination & other health care programmer:-

We get the help of expert doctor for various type of vacation more over us test the

blood group of all the employees so we faced no problem if we face emergency.

9:-provision of canteen:-

As Rafhan Maize Products Co. Ltd, process has more than 1000 employees so it has

its own canteen; half charges of the canteen are born by the employer and other by the

labor.

10:-welfare officer:-

Rafhan Maize Products Co. Ltd is a big unit so we have our welfare officer whose

responsibility is to look after the various problems of labor.

11:-other facilities:-

We provide different type of juices to our employees in summer season to make

themmore effective for good work.

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Safety of workers

Rafhan Maize Products Co. Ltd keeps various precautionary measures for the safety

of workers.

1:-precautions against fire:-

We have many fire points at difference places in our mill. More over us give training

to our workers regarding use at fire machine.

2:-precautions regarding dress:-

We advice our workers to wear pent shirt so they can safe from machines. We insure

the use of tight dress.

3:-use of glasses:-

We assure the use of glasses for those workers which bring dangerous chemicals

4:- use of long shoes and gloves:-

We assure the use of long shoes and gloves for the workers who work with dangerous

liquid chemicals so that they remain safe from those chemicals.

5:-employment on dangerous machines:-

We hire the technically qualified person for machines whose operation is dangerous in

nature.

6:-pressure point:-

The boiler plant is very dangerous plant, if this is not in good position it can blast like

as bomb so it is very necessary to maintain their pressure below danger line.

7:-safe mean of access:-

This is very important that all floors, steps and stairs are of sound quality and clean so

people walking on it remain safe from dangers.

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8:-use of machine:-

All the workers are advised not to lift weight more than their ability; we use lifter to

lift heavy weights.

9:-implementation of rules:-

We make assure that all the safety measures are working properly or not. If workers

are not following precautionary measures management force them to act according to

rules.

10:-explosive and inflammable dyes and chemicals:-

There are many chemicals that are used which are explosive or inflammable nature.

We keep empty drum for this purpose.

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OBSERVATIONS

The following points were observed by me during my visit and these are kind of

major ones I could find as the overall performance of the company is really

satisfactory and furthermore nothing is perfect or gives 100% results.

There is not good stability in the organization relating to the order meeting.

The use of information technology is not as per international standard.

There is a fluctuation in the working (production) of the firm.

The internal customers (employee) are not satisfied about their jobs.

Huge gap between the juniors & seniors.

Major part of employees are not satisfied, as someone are gaining so much for

nothing & someone are not gaining sufficient for so much.

Professionalism is not considered important.

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SUGGESTIONS

The Rafhan Maize Products Co. Ltd. is losing its benefits in lower raw material

prices, while energy cost and credit cost have increased considerably. There is a need

to check the trend of further increases both by policy, support by the Government and

it self. The major challenges are to enhance the competitiveness of the mill, which

have been created on account of internal weaknesses to improve quality productivity

and production efficiency to be desired levels. The suggestions that particularly relate

to Rafhan Maize Products Co. Ltd. are as followings;

o Allocating a specific budget should enhance the promotional activities of Noor

Fatima.

o The company should control the finance.

o The cost of production of company should be controlled. The utilizing the

plant capacity in full can reduce fixed cost.

o The sale of company should increase by searching new markets.

o Local processing should not be preferred then export.

o To create an environment which attracts and supports the employees or say

employee welfare should be taken care of.

o The central decision making system which is now a days the weakness of 80%

of our textile industry should be taken care of or at least some improvements

should be made to up-grade this kind of system.

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Conclusion

After studying the entire project I have concluded that Rafhan Maize Products Co.

Ltd. is a good for continuous learning, that no one can get bored by doing the same

activities at all time. There is a continuous learning process that enables the employee

to see the picture of the organization in different paradigm and bring up with new

solutions. The main thing is that there is weekly report system that every GM is

responsible to respond CEO. But there are also some problems in the organization that

it must be worked out in order to gain some competitive advantage and to get the top

position in the world.

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Documents

Rafhan Amended