Vision Statement“Our Office is the Market”

Mission Statement

“We the people of Murree Brewery Co. Ltd. Make our personal commitment to understand our customers’ requirement then meet and exceed their expectations, by performing the correct tasks on

time and every time through:

•Continuous improvement

•Alignment of our missions and goals

•Responsibility of our jobs and each other

•Educate one another”

HISTORY

• Murree Brewery is a listed company that was established in 1860.

• Managed initially by the family of General Reginald Dyer• The first brewery was located at Ghora Gali near Murree.• In 1886 another brewery was purchased in Quetta, but was

destroyed during an earthquake. • Currently, Murree Brewery owns one brewery in

Rawalpindi, and one in Hatter in the Khyber Pakhtunkhwa (KPK).

Murree Brewery11%

Pepsico47%

Nestle20%

Shezan21%

Market Share 2013

Murree BreweryPepsicoNestleShezan

Non-Alcoholic Beverages

Murree Brewerey Murree Brewery

Liquor division(RWP)

Tops Division(RWP)

Glass Division(Hattar)

PRODUCTS

Murree Brewery products

Alcoholic beverages

Non- Alcoholic beverages

LIQOUR

Non-Alcoholic Beer (NAB)

Carbonated soft drinks

OUR VISIT

Separate production lines, water pipes, floor spaces.

Separate boiler and steamer. Separate production processes Fermenters placed separately-underground.

ASSEMBLY LINE

Quality assurance

Every bottle is screened. If some impurity is found,

the bottle is removed right away.

Legal items produced in access

LEGALITIES (Alcoholic beverages)

Provision of credentials as non-muslim.Permit to be obtained by the SECP.Prices of liquor set by SECP.Nil storage costs- product to be picked up within a week. Cannot make the profits it has potential of.

• Financial statements prepared on every 30th June.

Procurement1. Local purchases i. Issue request

ii. Issue voucher (stock transfer note) Maintains a check and balance of stock in the storeiii. Store purchase demand form (SPD) The SPD Form contains description of the item, supplier, demand, store balance and purpose for which the item is required.iv. Quotations and purchase order PO includes quantity of goods purchases, specification of goods and the period of

requirement.v. Store Receipt voucher

vi. Documents sent to Accounts officevii. Payment made.

General storeRaw Material

Rolling stock

Out code In code Description Particular Quantity

101016 201016 Sugar 1/4900 TUN ROOM 3,000

120102 220102 Citric acid 1/4900 TUN ROOM 100

109056 209056 Hops nuggets 1/4900 TUN ROOM 100

MURREE BREWERY COMPANY LIMTED

STOCK TRANSFER NOTE (ISSUE VOUCHER)

V.NO 1674 DATE: 20/03/2014 COST CENTRE: 9016 TUN ROOM

PRINT DATE: 21/03/2014 11:45:21 AM

S. No ITEM CODE

ITEM DESCRIPTION

UNIT MAKE/ MODEL

TOTL BUDGET

BALANCE BUDGET

LAST PURCHASE HISTORTY DEMAND STORE BALNCE

REMARKS

DATE QUANTITY RATE LAST SUPPLIED BY

MURREE BREWERY COMPANY LIMTED

STORE PURCHASE DEMAND FORM

COMPUTER SPD NO. SPD Date SPECIAL INSTRUCTIONS SPD RAISED BY: SECTION SPD NO. SECTION DELIVERY DATE

Store Keeper __________________ General Manager _____________________

S.no Item Code

Description Unit Make Unit Price

Quantity Total Amount

Sales Tax Remarks

1 252107

Big apple 500ml Pet bottle

NOS

LOCAL

8.50 50,000 4,250,000.00 680,000.00

2 254367

Big apple 1.5L Pet bottle

NOS

LOCAL

14.10 100,000 1,410,000.00 225,600.00

3 564389

Big apple 300ml Pet bottle

NOS

LOCAL

5.85 100,000 585,000.00 93,600.00

Total 6,245,000.00 999,200.00 Total

amount including -

-Sales tax (Rupees):

7,244.200,00

MURREE BREWERY COMPANY LIMTED

PURCHASE ORDER (PO)

ADDRESS: NATIONAL PARK RWPD.

TELEPHONE#: XXXXXXXX

FAX: XXXXXX

EMAIL: XXXXX

SALES TAX REGN# 07-02-2905

NATIONAL TAX# 0786909-6

PURCHASE ORDER# MUST BE GIVEN INVOICE ACCOMPANYING THE

CONSIGNMER MBC’S PURCHASE SECTION

THE OUTSIDE OF EACH PACKING/SHIPPING MARKED”MURRE BREWERY CO.LTD.”

THE MATERIAL SHOULD BE SUPPLIED FROM FRESH SHELF LIFE OF SIX MONTHS.

Customer code: 2413545

M/S UNIPET (PVT) LIMITED

Suit#7, 2nd floor Auriga Complex Main

Market Gulberg

Lahore

The buyer hereby agrees to purchase and receive from the supplier the following store as per your store no.

Chief Financial Officer __________________ General Manager _____________________

STORE RECEIPT VOUCHER

ROLLING STOCK

VOUCHER 632 DATE: 20/03/2014

SUPPLIER 2413847 ECO PACK LTD.

SUPPLIER INVOICE NO. LVR NO.

PURCHASE CODE

ITEM CODE

STOCK DESCRIPTION

UNIT QUANTITY PURCHASED

RATE AMOUNT STAX CLAIMABLE

STAX SED TOTAL REMARKS

5123 151128 BIG LYCHEE 300 ML PET

8,848.00 0.00 0.00 0.00 0.00 21/03/14 P DC#2990

TOTAL VALUE OF STOCK RECEIVED 0.00 0.00 0.00

CERTIFIED THAT ………… PACKAGES MARKED…………..WEIGHING……..

CONTAINING………..HAVE BEEN RECEIVED AT THE FACTORY ON………..AT……………………….

AND DULY ENTERED IN GATE REDISTER AT P.NO. ………………….ON……………….

SECURITY WORKER: ________________ SECURITY OFFICER: __________________

CERTIFIED THAT ABOVE MENTIONED STORES HAVE BEEN CORRECTLY RECEIVED BY ME TO THE BEST OF MY KNOWLEDGE AND HAVE BEEN TAKEN ON CHARGE. STORED IN ……………………

Figure 1 - Sample Store Receipt Voucher (SRV)

Example Case

Murree Brewery Company Limited purchased Raw Material e.g. Plastic Bottles for Production Department of the company, costing Rs. 500000 from Suppler ‘X’, given that Store Department has no balance left of the required material.

Sales Tax (GST) is 17% and MBC also has to pay Federal Excise Duty (FED) which is 9%. At the time payment, a certain amount is withheld on behalf of the Government. 3.5% of the payable amount is withheld as Withholding Income Tax and 1/5th of the GST is withheld as Withholding Sales Tax.

Withholding Income Tax is to be submitted to the Government within 7 days of the transaction and GST is to be submitted on the 15th of each month

Debit Credit

Rs. Rs.

Raw Material (Plastic Bottles ) A/C 500000

G. Sales tax (17%) A/C 85000

FED (9%) 45000

Supplier ‘X’ A/C 630000

Purchase Plastic Bottles from Supplier ‘X’

Debit Credit

Rs. Rs.

Supplier ‘X’ A/c 630000

Bank A/c 590950

Income tax Withholding tax (3.5%) 22050

Sales tax Withholding tax (1/5th s. t) 17000

Payment made to Supplier

Debit Credit

Rs. Rs.

Income tax Withholding tax 22050

Sales tax Withholding tax 17000

Bank A/c 39050

Withholding Taxes Submitted to Government

Code Particulars Ref./Narration Amount Deductions 81703 Telephone/Fax Expenses Internet Charges of Galaxy

Vision Net M/O Mar’14 2,900.00 0.00

2324 Withholding Tax Payable (@ 2%)

7% W. H. Tax (Galaxy Vision Net)

0.00 203.00

Total Amount Rs: 2.900.00 203.00

NET AMOUNT PAID RS: 2,697.00 203 AMOUNT IN WORDS TWO THOUSAND SIX HUNDERED NINETY-SEVEN ONLY

PREPARED BY CHECKED BY APPROVED BY

CASHIER SIGNATURE Received by

PAYMENT VOUCHER Print Date:

Voucher No:

Murree Brewery Co. Ltd P. O. Box No. 13, National Park Road Rawalpindi Tel: 090078601 Fax: 090078601 Email: _________________________ Website: www.murreebrewery.com

Date: 30/09/2014

Paid to: MR. AHMED KHAN

Bank/ Cash: NATIONAL BANK OF PAKISTAN

GL Code: 56208

CHEQUE NO. LVR Ref. NO.:

NARR/DETAIL: INTERNET CHARGES OF GALAXY VISON NET M/O MAR ‘14

Voucher No. 5367

LVR/LVV 1584 DATE 25/02/2014 P.O DATE 25/02/2014 PAYMENT DUE ON: / /

CODE: 2413545 SUPPLIER: UNIPET (PVT) LIMITTED

ADDRESS: >> S.TAX S.TAX

PHONE.NO: BILL NO.1:1 BILL NO.1 BILL BILL NO.2

BILL NO. 3 BILL.NO. 4 BILL.NO. 4 BILL BILL.NO. 5

OTHER BILLS:

SR# 544,00 DATE: 18/02/2014 SR. RS

MURREE BREWERY COMPANY LIMTED

LIABILITY VOUCHER

Figure 1 - Sample Payment Voucher and Liability Voucher (LVR)

Petty cash purchases Debit Credit

Rs. Rs.

Purchaser Advance account A/c 20000

Cash Account 20000

Advance taken by Purchases staff for urgent purchase of 5 sugar bags

Stock account A/c 20000

Purchaser Advance account A/c 200000

Stock Submitted to Stores along with Purchase Invoice

2. Imports

i. Carried out through letter of creditii. Binding document, requested from the bank

Example CaseMBC needs to Import Barley form Australia. As means of ensuring payment and receiving goods both parties agree to use Letter of Credit. The bank charges Rs. 50000 to MBC to establish LC with bank along with insurance cover. The company plans to import Barley costing Rs. 5000000. Sales Tax is 17%, Customs Duty is 10% and 5% is to be withheld as income tax.

Debit Credit

Rs. Rs.

LC Account (Insurance, bank charges etc.) 50000

Bank Account 50000

LC is established with bank along with insurance cover

LC Account (raw material, etc.) 5000000

Bank Account 5000000

When Goods are received at port bank makes the payment.

L/C account Custom Duty say 10% 500000

Sales Tax (17% of 5.5 million) 935000

Income tax (5% of (5.5m +.935 m) 71750

Bank A/c 1506750

Taxes are paid by the company and Goods are released

3. Fixed asset procurement:

i. Procedure for fixed asset procurement is similar to Local Purchases Procedure with exception of a separate record being maintained for each asset in a Fixed Asset Register (FAR).

ii. Code is assigned to assets for identification. iii. Disposal of fixed assets is made as per company’s policy (tender procedure).iv. Employee vehicle is sold as per company policy to employee on Fair Market

Value. v. Record maintained in Fixed Asset Register includes location of the Asset,

depreciation Charged, time of purchase, revaluation Surplus etc.vi. At the time of disposal tender advertisement is made, specification of the

assets are mentioned and are sold to the parties that make the best offer.

Production

Accounts Office will incorporate the following Journal entries relating to the activities Production Department: Stock issued by Store department to Production and Record entries in GL

and Cost records.Overhead expenses Incurred by ProductionOverhead expenses charged to Production and Record entries in GL and

Cost records.Closing Entries in GL and Cost records.

Item Name Unit Opening

Balance Receipt Total Loss Packed Total Closing

Balance Liquid Ltrs 300 29654 29954 264 29500 29764 190 Sheets Nos 249 2951 3200 20 3030 3050 150 Co-2 gas Kgs 73 1927 2000 0 1920 1920 80 Cans 500 ml Nos 500 59900 60400 1120 59030 60150 250 Cans Lids Nos 50 59330 59410 550 58830 59380 30 Pvc Tape Rolls 9 0 9 0 5 5 4

MURREE BREWERY COMPANY LIMTED

Daily Production and Consumption Report

Date: ______________________

Prepared By: ________________________ Approved By: _________________________

Example Case (cont. from Local Purchases)

Plastic Bottles of worth Rs. 500000 were purchased. They are now issued by the Store Department to the Production Department. Overheads expenses incurred by the production department are: Salary and Wages – Rs. 100000, Utilities – Rs. 150000, Depreciation – Rs 70000.

Debit Credit

Rs. Rs.

Cost of goods manufactured a/c 500000

Raw Material (Plastic Bottles) 500000

Stock Issued to Production Department by Stores

Salary wages 100000

utilities electricity 150000

Bank A/C 250000

Overheads incurred by Production Department

Depreciation Expense 70000

Accumulated Depreciation 70000

Depreciation Expenses related to Production Department

Cost of Goods manufactured 320000

Overheads 320000

Overheads charged to Production Department

Finished goods stock 220000

Cost of Sales 600000

Cost of Goods manufactured 820000

Production Department issues goods to Sales and Stores department

Sales

The reports prepared by Sales Department at the time of Sale are:

Sales InvoiceSales Statement (For every product) Sales Tax InvoiceTransport FormIssue Application DistilleryProduct wise Sales Report

GL CODE

PRODUCT DESCRIPTION

PACKING QUANTITY SOLD IN CTN

EX–FACTORY AMOUNT

EXCISE DUTY

SALES TAX 17%

ADD. STAX 1%

NET PAYABLE

61003 BIG APPLE 300ML

CARTONS 1000 1344000 0 0 0 1344000

61004 PEACH MALT 250ML

CARTONS 500 140000 13846.15 26153.85 1538.46 180000

61010 CINDY 250ML

CARTONS 800 46666.67 4615.38 8717.95 512.82 60000

TOTAL 2300 1530666.67 18461.53 34871.8 2051.28 1584000

ADD Special Excise Duty = 0 Freight/Octri = 5200 Bonus = 2550 LESS Discount = 34000 W. C. Security = 0 Empty Security = 0 Net Payable = 1557750

MURREE BREWERY COMPANY LIMTED

SALES STATEMENT FOR ACCOUNT

CODE PRODUCT PACKING TOTAL CASES LITRES 101213 LEMON MALT CARTONS 40 0.00 101214 PEACH MALT CARTONS 76 0.00 101215 MALT - 79 CARTONS 90 0.00 101216 BIG APPLE CARTONS 100 0.00 101220 BIG ORANGE CARTONS 50 0.00 104590 BIG PEACH CARTONS 35 0.00 GROUP TOTAL 391 0.00

MURREE BREWERY COMPANY LIMTED

PRODUCT WISE SALES REPORT FOR THE PERIOD

Particular Class of Spirits Datails of Issue Degree of

Obscuration

Export fee charged

Still Head Duty

Charged

Total of columns 10 & 11

Details of Labels on each package or drum or cask

Weight of each

Package

No. of cases or drums

Issued under Pass No. and

Date In Dozen Bottles In Gallons

QTS PINTS NIPS BUILK GALLONS

STRENGTH L. P. GALLONS

**** Hotel

Classic Whisky

10 0 0 20 75 15 10

Murree Vodka

50 0 0 100 75 75 50

Sapphire Gin

50 0 0 100 65 65 50

Vintage Gold

10 0 0 20 75 15 10

Total 120 0 0 240 170 @ Rs. 600.00/LP Gallon = 102000 120

MURREE BREWERY COMPANY LIMTED

TRANSPORT FORM

To be given to the applicant form Company for the consignment which is transported or exported pass for the transport of Liquor of all kinds from licensed premises

Pass no. _____________ Dated _________________ for the transport/export of Liquor from the licensed premises of Messrs. MURREE BRWERY COMPANY LIMITED IN RAWALPINDI Tehsil: RAWALPINDI DISTRICT, to the licensed premises of __________________________ in ____________________ Tehsil: ______________ District, on the authority of Permit No. ______________ Dated _________________ Signed by the collector of __________________________ The pass is valid upto ____ Days Vehicle No. ______________________________

ONE HUNDERED-TWO THOUSAND ONLY

Distillery Excise Inspector _____________________

It is MBC’s policy to receive advance payments for the goods sold from its customers.

Prepayments by the customers are treated as company’s liability until the goods are dispatched to the customers.

Payments are receive via Bank Demand Draft (DD).

Example Case (cont. from production)Cost of Goods issued to sales department was Rs. 600000. It is company

policy to maintain 10% profit margin on the goods sold. Sales Tax is 17% and Federal Excise Duty is 9% of the sales revenue.

Debit Credit

Rs. Rs.

Bank A/c 831600

Customer A/c (Prepayment) 831600

Advance amount is received by Sales department through Bank DD from Customers

Customer A/c (Prepayment) 831600

Sales Revenue (cost + 10%) 660000

GST 17% 112200

FED 9% 59400

Goods are dispatched

Bulk production ReportPurpose Keep track of the total processed quantity sent for packing.Contents Quantity of production, wastage during production, issued for packing and opening/closing balance of processed goods.Target audience Packing Department’s Supervisor/ ManagerPreparer Processing Department’s SupervisorFrequency of preparation The report is prepared for each batch of goods that passes from processing to packing division

PARTICULARS UNIT QUANTITY

Opening Balance LTRS

No. Of Batch -

Total Production LTRS

Filtration Process LTRS

Issue For Bottling LTRS

Closing Balance LTRS

PET Plant Quality Testing and Sampling ReportPurpose To check the efficiency and the level of capacity at which the PET plant is operating.Contents The report contains information about the quantity.Target audience Quality Assurance (QA) Manager or Fixed Asset ManagementPreparer Quality Assurance (QA) staffFrequency of preparation It is up to the QA staff to decide when to prepare such reports, but usually the report is prepared on annual basis.

CTN FLAVOR 300 ml 500 ml 1500 ml

CTN BIG APPLE

CTN BIG PEACH

CTN BIF LYCHEE

Signature: ________________________

Daily Consumption Report (D. B. H)

Purpose To maintain a record of the material like bottles, labels of the bottles and caps used in packing.Contents The report consists of details of 3 parts i.e. bottles, labels and caps. Target audience Packing Supervisor.Preparer Staff of Packing DepartmentFrequency of preparation Prepared everyday.

Empty Bottles

Brands Size Used Loss Used Loss V/W PTS 5548 55 2774 27. CTN

LD. GIN PTS 3986 39 1993 19. SHEET P/V PTS 1998 19 999 09. CTN V/W NIPS 1692 16 846 08. CTB

LINER PTS -- -- 5766 57. LINER

LABELS ITEMS SIZE O. B RECEIVED TOTAL USED LOSS C. B

V/W PTS 60150 42000 102150 66576 665 34909 LD. GIN PTS 62809 45000 107809 47832 478 59499

P/V PTS 33954 9000 42954 23976 239 18739 V/W NIPS 52955 -- 52955 20309 203 32651

CAPS SIZE O. B RECEIVED TOTAL USED LOSS C. B 28mm 63844 100000 163844 158688 1585 3571

CORA GUM 153 kg 95 kg 248 kg 30 kg -- 218 kg

Inventory Management (Daily Stock Position)

Purpose This report is prepared to keep a check on the amount of inventory on hand. By generating an inventory report on a daily basis the store department can identify if a theft has taken place.ContentsThe inventory report consists of any opening balances of the different raw materials and finished goods, any receipts or issues made and the closing balances.Target AudienceStore supervisor and Staff.PreparerStore Department.Frequency of preparationDaily.

S.NO ITEM UNIT OPENING SR RECEIPT TOTAL IDENT

ISSUE CLOSING

BALANCE NO PURCHASE M. B. C TOPS NO. PET PLANT M. B. C TOPS BALANCE

1. SUGAR KGS

2. ORANGE FLAVOR

LTRS

3. PVC CAPS NO.S

4. EMPTY CTN

NO.S

MURREE BREWERY COMPANY LIMTED

DAILY STOCK POSITION

Raw Material

Store Incharge Manager Store Accountant PET PLANT B & F

PRODUCTS OPENING RECIEPTS TOTAL ISSEUES CLOSING Big Apple 300 ml Big peach 300 ml Big lychee 300 ml Big orange 300 ml Etc

Store Incharge Manager Store Accountant PET PLANT B & F

Analysis of Earnings per share of Murree Brewery

PurposeThe analysis is done for the shareholders of the company. It shows how much profit the company has made on each share.ContentsThe report consists of the yearly Net Proft, the number of shares issued and variances from previous yearsTarget AudienceHigher Management or the board of directors, as the report is helpful in analysing the performance of the company.PreparerAccounts or Finance Department.Frequency of PreparationThe analysis is done on annual basis, however quarterly analysis can also be done if the data is available.

EPS of Murree Brewery shares have increased by 24% in the year 2013, and it is expected to remain constant during the year 2014. it is a favorable sign for investors to buy shares of the company. Current and Future shareholders should expect an increase in their dividends because EPS of the company has slightly improved because of increased net profit of the company.

BudgetsSales Budget

Purpose Attempts to forecast how much of a product will be sold over a period of time .ContentsThe basic calculation in the sales budget is to itemize the number of unit sales expected in one row, and then list the average expected unit price in the next row, with the total revenues appearing in a third row. The unit price may be adjusted for marketing promotions. If any sales discounts or returns are anticipated, these items are also listed in the sales budget.Target AudienceProduction and marketing departments.PreparerThe manager of the sales department overlooks the preparation of the sales budget.Frequency of preparationSales budget is generally prepared annually.

Projected Sales (units) 350,000 200,000 700,000 670,000Unit Price(Rs.) 250 750 45 45Projected Revenue(Rs.) 87,500,000 150,000,000 31,500,000 30,150,000

Sales Budget

Bigg Peach (Bott) 500 ml

Sales Budget:

Products Mill Beer (Can) 500ml

Sapphire Gin (Bott) 1500ml

Bigg Apple (Bott) 500ml

Production Budget

PurposeTo estimate the costs of manufacturing a product. The budget generally contains an estimate of how many units the company needs to produce.ContentsThe first row contains the projected sales in units. These figures are then added to the desired closing inventory. Consequently, the beginning inventories of the respective products are subtracted from these.Target AudiencePurchases department and production department.PreparerThe production budget is prepared under the supervision of the production department. Frequency of PreparationProduction budget is prepared annually along with sales budget and raw materials budget.

Planned Sales 350,000 200,000 700,000 670,000 1,920,000Desired Ending Inventory 0* 0* 150,000 90,000 240,000Total Needs 350,000 200,000 850,000 760,000 2,160,000` 0 0 15,000 10,000 25,000Units to be Produced 350,000 200,000 835,000 750,000 2135000

Production Budget:

Production Budget

Mill Beer (Can) 500ml

Sapphire Gin (Bott) 1500ml

Bigg Apple (Bott) 500ml

TotalBigg Peach (Bott) 500ml

Raw Materials BudgetPurpose To ensure optimal utilization of raw materials in the production process. Additionally, it also performs the role of keeping the inventory stores for inputs in check.ContentsRaw materials budget is comprised of two parts. The first part contains the various products offered by the firm with their corresponding input requirements. This part computes total amount of raw materials required. Subsequently, the second part budgets the purchase of raw materials keeping in view current inventory level and desired closing inventory.Target AudiencePurchases department and storage management. PreparerThe raw materials budget is prepared by the purchase department with the help of production department of the company.Frequency of PreparationRaw materials budget is prepared annually.

Sugar (kgs) 14,980 5,000 104,790 98,222 222,992

Citric Acid (kgs) 1,085 2,100 14,700 13,601 31,486

Artificial Flavour (kgs) 1,750 1,200 10,080 8,844 21,874

Clouding Agent (kgs) 1,400 2,060 3,500 3,149 10,109

Materials Required

Desired Ending Inventory Total Needs

Less: Opening Inventory

Units to be purchased

Sugar (kgs) 222,992 10,000 232,992 1,200 231,792

Citric Acid (kgs) 31,486 3,000 34,486 950 33,536

Artificial Flavour (kgs) 21,874 6,000 27,874 2,850 25,024

Clouding Agent (kgs) 10,109 2,500 12,609 1,250 11,359

Mill Beer (p/Can) 500ml

Sapphire Gin (p/Bott) 1500ml

Bigg Apple (p/Bott) 500ml

Bigg Peach (p/Bott)

Sugar (kgs) 0.0428 0.025 0.1497 0.1466Citric Acid (kgs) 0.0031 0.0105 0.021 0.0203Artificial Flavour (kgs) 0.005 0.006 0.0144 0.0132Clouding Agent (kgs) 0.004 0.0103 0.005 0.0047

Raw Material Requiremnt per unit

Raw Material Purchase Budget

Raw Material requirement of each product

Raw Materials Budget

Mill Beer (Can) 500ml

Sapphire Gin (Bott) 1500ml

Bigg Apple (Bott) 500ml

TotalBigg Peach (Bott) 500ml