A Project of Business Law

A Project of Business Law

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 Faisalabad Pakistan

A Project of Business Law

December 2011

Table of Contents
Sr. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Subject Acknowledgement Dedication Executive Summary Introduction Performance Statistics Core values Vision Mission Products Location Business laws Labor Law Child Labor Implementation of labor laws Health of workers Safety of workers Observation Suggestion Conclusion Annex Pg # 5 6 7 8 9 11 12 12 15 17 18 19 20 21 22 23 25 26 27 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

A Project of Business Law

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?

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-OFILM, 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.

A Project of Business Law

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

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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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. future. RESPECT FINANCIAL SUCCESS

We deal with and treat others the way we want to be dealt with and treated. We consistently focus on our business to create economic value today and into the

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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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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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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. POULTRY FEEDS, LIVESTOCK FEEDS, AQUA FEEDS

CATTLE FEEDS AND OTHER LIVESTOCK FEEDINGS.

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POULTRY/CATTLE/FISH FEEDS, ANTIBIOTICS.

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Location

Rafhan Maize Products Co. Ltd.

Corporate Headquarters & Plant:
Rakh Canal East Road, P.O. Box 62, Faisalabad 38060 Pakistan Tel: (0092) 418540121-22-23 Fax:(0092) 418711016 1st Floor, Finlay House, I.I. Chundrigar Road, Karachi - 74000 Pakistan Tel: (0092) 21-2442516, 2427731 Fax:(0092) 21-2428651

Registered & Regional Office:

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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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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. Childrens 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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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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