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

Non-Alcoholic Beverages

Market Share 2013

Murree Brewery; 11%

Murree Brewery
Pepsico
Nestle
Shezan

Shezan; 21%

Nestle; 20%

Pepsico; 47%

Murree Brewery
Murree Brewerey

Liquor
division
(RWP)

Tops
Division
(RWP)

Glass
Division
(Hattar)

PRODUCTS

Murree Brewery products

Alcoholi
c
beverag
es

NonAlcoholic
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 separatelyunderground.

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
Cannot make the profits it has potential of.

 Financial statements prepared on every 30th June.

Procureme
nt
1. Local
purchases
i. Issue request
ii. Issue voucher (stock transfer note)
Maintains a check and balance of stock in the store
iii. 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.
General store
v. Store Receipt voucher Raw
Material
Rolling
stock

vi. Documents sent to Accounts office

vii. Payment made.

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 )

500000

85000

45000

630000

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

FED

(9%)

Supplier X A/C

Purchase Plastic Bottles from Supplier X

Debit

Credit

Rs.

Rs.

Supplier X A/c

630000

Bank A/c

590950

Income tax Withholding tax

22050

17000

(3.5%)
Sales tax Withholding tax (1/5th
s. t)
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

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 credit
ii. Binding document, requested from the bank

Example Case
MBC 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

50000

etc.)
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

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 companys 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.

Producti
on
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 Production
Overhead expenses charged to Production and Record
entries in GL and Cost records.
Closing Entries in GL and Cost records.

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

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 Invoice
Sales Statement (For every product)
Sales Tax Invoice
Transport Form
Issue Application Distillery
Product wise Sales Report

 It is MBCs policy to receive advance payments for the

goods sold from its customers.
Prepayments by the customers are treated as companys
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
Report
Purpose

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 Departments Supervisor/ Manager
Preparer

Processing Departments Supervisor

Frequency of preparation

The report is prepared for each batch of goods that passes from
processing to packing division

PET Plant Quality Testing and Sampling

Report
Purpose
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 Management
Preparer
Quality Assurance (QA) staff
Frequency 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.

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 Department
Frequency of preparation
Prepared everyday.

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.
Contents
The 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 Audience
Store supervisor and Staff.
Preparer
Store Department.

Analysis of Earnings per share of Murree Brewery

Purpose

The analysis is done for the shareholders of the company. It shows how much profit
the company has made on each share.
Contents
The report consists of the yearly Net Proft, the number of shares issued and variances
from previous years
Target Audience
Higher Management or the board of directors, as the report is helpful in analysing the
performance of the company.
Preparer
Accounts or Finance Department.
Frequency of Preparation
The 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.

Budgets
Sales Budget
Purpose
Attempts to forecast how much of a product will be sold over a period of time .
Contents
The 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 Audience
Production and marketing departments.
Preparer
The manager of the sales department overlooks the preparation of the sales budget.
Frequency of preparation
Sales budget is generally prepared annually.

Production Budget
Purpose

To estimate the costs of manufacturing a product. The budget generally contains an

estimate of how many units the company needs to produce.
Contents
The 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 Audience
Purchases department and production department.
Preparer
The production budget is prepared under the supervision of the production
department.
Frequency of Preparation
Production budget is prepared annually along with sales budget and raw materials
budget.

Raw Materials
Budget
Purpose
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.
Contents
Raw 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 Audience
Purchases department and storage management.
Preparer
The raw materials budget is prepared by the purchase department with the help of
production department of the company.
Frequency of Preparation
Raw materials budget is prepared annually.