Financial Project PSO & Shell Compression

1. PRESENTED TO
SIR VIJAY KUMAR
PRESENTED BY:
M.USMAN BB-25289
TAHSEEN RAZA MEMON BB-25258
FARWA SHAHZAD BB-25301
INTRODUCTION TO FINANCIAL ACCOUNTING
ACC-101
11/19/2012
FINANCIAL REPORT

2. ACKNOWLEDGMENT
IN THE NAME OF ALLAH, THE MOST BENEFICENT
AND MOST MERCIFUL
"WE RISE IN DEGREE OF RANK WHOM SO EVER WE
PLEASED; AND OUR EVERY PRESSURE OF
KNOWLEDGE IS ONE, MOST KNOWING".
(AL-QURAAN)
We are grateful to ALMIGHTY ALLAH, for enabling us to fulfill this report.
We would not be going justice in presenting this report without mentioning the
people around us who have been inextricably related with the completion of this
report.
The long and tough task of developing this report was made easier by the help
and guidance of our teacher. The whole practice of collecting material for the
report compiling and composing was enjoyable.
We extended our deep gratitude and heartiest thanks to our teacher
“MR.VIJAY KUMAR”
As their experience and wisdom, skill constructive criticism and valuable
suggestions guided us through out.

3. DEDICATION
We would like to dedicate this report to our Respected Teachers
and instructors who help us at every stage of our life, our
Parents & siblings who always clasp us and sit beside us to
encourage at any cliffhanging situation, also we would like to
dedicate this report our friends, classmates and love ones.
Authorization:-
We are thankful to our respected MR. Vijay Kumar who trust in our capabilities
and give us permission to prepare this knowledgeable report.

4. Executive Summary
The purpose of this report is to analyses the important of marketing budget for
increasing the revenue.
This report considered two petrol companies who also have their outlets. These
companies are Shell and PSO.
We consider that how much marketing budget increase and decrease in year,
how they affect the revenue of the companies, increasing and decreasing the
marketing budget increase and decrease the revenue respectively, increasing and
decreasing the marketing budget decrease and increase the revenue respectively
or there is some other factors of revenue. Other factors which reduce the
revenue is out of limitation of our report.
We compare the marketing budget and revenue of each year of each company
and analyze from the charts from 2009 to 2012. After that we compare both the
companies on the basis of each result. At last we give a conclusion of each year.

5. CONTENT
ABOUT SHELL …………………………………………..…………. 1-3
ABOUT PSO …………………………………………………..…. 4-5
COMPARE REVENUE & MARKETING BUDGET SHELL 2009….. 6
COMPARE REVENUE & MARKETING BUDGET PSO 2009…….. . 7
COMPARING FIGURES OF SHELL AND PSO 2009………………. 8
COMPARE REVENUE & MARKETING BUDGET SHELL 2010….. 8-9
COMPARE REVENUE & MARKETING BUDGET PSO 2010……... 10
COMPARING FIGURES OF SHELL AND PSO 2010………………. 11
COMPARE REVENUE & MARKETING BUDGET SHELL 2010….. 11-12
COMPARE REVENUE & MARKETING BUDGET PSO 2010……... 12-13
COMPARING FIGURES OF SHELL AND PSO 2010………………. 13
CURRENT YEAR PERFORMANCE………………………………… 14
CONCLUSION………………………………………………………... 15

6. ABOUT SHELL
Pakistan business structure
Shell prides itself on supplying our customers with the quality products and service
you've come to expect over the years. We aim to make doing business with us as
smooth as possible, which is why we can offer a range of service solutions to make
your operations run more efficiently.
Shell has a rich legacy and long association with Pakistan. As one of the oldest
multinational companies in the country, Shell has been a partner in the region’s
growth and development for over a century.
Shell Pakistan Limited leads the industry when it comes to the introduction of new
technology and services that make us a world renowned provider of energy. Shell
is the largest international player in retail outlets in Pakistan and we provide fuel to
around 1 million customers daily.
The goal of our company is to constantly improve on our customer’s experience,
and in an increasingly competitive environment, Shell’s commitment to providing
top quality, right quantity and superior service has been the driving strength of our
business in Pakistan.

7. We believe winning hearts and minds is as important as winning markets. As a
choice, Shell cares for the environment around us, and the impact our business can
make in the community. We believe strongly that business has a fundamental role
in delivering society’s goals – be it economic, social or environmental. In line with
this pledge, Shell Pakistan Limited leads the oil industry through a structured
social investment programme that focuses on education, health and sustainable
development.
Being at Shell Pakistan Limited is about values, our core values of honesty,
integrity and respect for people are at the heart of the way we manage our business.
These principles embody our commitment to society and to our country.
Our contribution to Pakistan
Shell in Pakistan is committed to the principle of sustainable development that can
meet the needs of the present generation without compromising the ability of
future generations to meet their own needs. Our actions are therefore guided by the
need to make business decisions that demonstrate economic, social and
environmental responsibility for which our stakeholders and society at large can
hold us accountable.
Through sustainable development, we integrate the economic, environmental and
societal aspects of our business to achieve sustained financial success, safeguard
our environment and develop our reputation as partner and provider of first choice
for all of our shareholders, customers, employees, those with whom we do
business, society and future generations - all of whom expect us to engage with
them, listen to them and evolve to meet their changing expectations.

8. History
After the independence of Pakistan in 1947, the name was changed to the Burmah
Shell Oil Distribution Company of Pakistan. In 1970, when 51% of the
shareholding was transferred to Pakistani investors, the name of changed to
Pakistan Burmah Shell (PBS) Limited.
The Shell and the Burmah Groups, retained the remaining 49% in equal
proportions. In February of 1993, as economic liberalisation began to take root and
the Burmah divested from PBS, Shell Petroleum stepped into raise its stake to
51%. The years 2001-2 have seen the Shell Petroleum Company successively
increasing its share, with the Group now having a 76% stake in Shell Pakistan Ltd
(SPL)- an expression of confidence.

9. About PSO
Pakistan Business Structure
PSO is the market leader in Pakistan’s energy sector. The company has the largest
network of retail outlets to serve the automotive sector and is the major fuel
supplier to aviation, railways, power projects, armed forces and agriculture sector.
PSO also provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan and ship
fuel at 3 ports. The company takes pride in continuing the tradition of excellence
and is fully committed to meet the energy needs of today and rising challenges of
tomorrow.
PSO possesses the largest distribution network in the country comprising of 3,689
outlets out of which 3,500 outlets serve the Retail sector and 189 outlets serve our
bulk customers. Out of the total of 3,689 outlets, 1,691 Retail and 167 Consumer
Business outlets have been upgraded with the most up-to-date facilities as per the
visualization of the New Vision Retail Programme.
PSO also operates 31 company-owned and company-operated (Co-Co) sites
serving the retail sector. Co-Co sites are flagship stations which combine high
levels of supervision and top quality products to maintain the highest level of

10. efficiency, service and customer care. These sites act as benchmark for all other
retail outlets.
History
The creation of Pakistan State Oil (PSO) can be traced back to the year 1974,
when on January 1st; the government took over and merged Pakistan National Oil
(PNO) and Dawood Petroleum Limited (DPL) as Premiere Oil Company Limited
(POCL).
Soon after that, on 3rd June 1974, Petroleum Storage Development Corporation
(PSDC) came into existence. PSDC was then renamed as State Oil Company
Limited (SOCL) on August 23rd 1976. Following that, the ESSO undertakings
were purchased on 15th September 1976 and control was vested in SOCL. The end
of that year (30th December 1976) saw the merger of the Premier Oil Company
Limited and State Oil Company Limited, giving way to Pakistan state Oil (PSO).
After PSO’s inception, the corporate culture underwent a comprehensive renewal
program which was fully implemented in 2004. This program over the years
included the revamping of the organizational architecture, rationalization of staff,
employee empowerment and transparency in decision making through cross
functional teams. This new corporate renewal program has divided the company’s
major operations into independent activities supported by legal, financial,
informative and other services. Inorder to reinforce and monitor this structural
change, related check and balances have been established by incorporating
monitoring and control systems.
Human Resource Development became one of the main priorities on the
company’s agenda under this corporate reform.
It is due to this effective implementation of corporate reform and consistent application of the
best industrial practices and business development strategies, that PSO has been able to maintain
its market leadership in a highly competitive business environment.

11. Comparing Revenue and marketing expense
of Shell 2009
As see below the revenue of shell in 2009 is 180 billion, which low from 2008 i.e.
182 billion.
Marketing expense in 2008 and 2009 is 496,098 million and 401,551 million
respectively
0
100,000
200,000
300,000
400,000
500,000
600,000
2008 2009
RUPEES IN MILLION
RUPEES IN MILLION

12. If we compare both the years marketing expense decreasing in 2009 whereas
revenue is also decreasing
Comparing Revenue and marketing expense
of PSO 2009
As seen below the revenue of PSO in 2009 is 13.2 billion, which high from 2008
i.e. 13 billion
Marketing Expense in 2008 and 2009 is 285,152 million and 310,861 million
respectively
0
2
4
6
8
10
12
14
2006 2007 2008 2009
rupees in billion
rupees in billion
270,000
280,000
290,000
300,000
310,000
320,000
2008 2009
Rupees in million
Rupees in million

13. If we compare both the years marketing expense increasing where as revenue is
also increasing
Comparing the figures of Shell & PSO 2009
In 2009 Shell decrease its marketing budget from 496,098 Million to 401,551
Million which decrease its sale which affect directly the revenue of Shell and its
revenue decreases from 182 Billion to 180 Billion.
Whereas, PSO increase its marketing budget from 285,152 million to 310,861
million which increases its sale which affect directly the revenue of PSO and its
revenue increases from 13 Billion to 13.2 Billion.
Comparing Revenue and marketing expense of
Shell 2010
As see below the revenue of shell in 2010 is 225 billion, which high from 2009 i.e.
180 billion

14. Marketing expense in 2009 and 2010 is 401,551 million and 185,485 million
respectively
If we compare both the years marketing expense decreases in 2010 but revenue
increases
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Rupees in Million
2009 2010

15. Comparing Revenue and marketing expense
of PSO 2010
As seen below the revenue of PSO in 2010 is 14.2 billion, which high from 2009
i.e. 13.2 billion
Marketing Expense in 2009 and 2010 is 310,861 million and 167,465 million
respectively
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2009 2010

16. Comparing the figures of Shell & PSO 2010
In 2010 Shell decrease its marketing budget from 401,551 Million and 185,485
Million but due to other factors and strong conditioning of the product its revenue
increasing from 180 Billion to 225 Billion.
Whereas, PSO also decrease its marketing budget from 310,861 Million to 167,465
Million but due to having customers like Pakistan Railway, Pakistan International
Airline, Pakistan Army etc. its revenue increases from 13.2 Billion to 14.2 Billion.
Comparing Revenue and marketing expense
of Shell 2011
As see below the revenue of shell in 2011 is 250 billion, which high from 2010 i.e.
225 billion
Marketing expense in 2010 and 2011 is 185,485 million and 329,815 million
respectively

17. Comparing Revenue and marketing expense of
PSO 2011
Marketing Expense in 2010 and 2011 is 167,465 million and 358,507 respectively
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2010 2011
RUPEESINMILLION
YEAR
12
12.5
13
13.5
14
14.5
2010 2011
AxisTitle
Axis Title
RUPEES IN BILLION

18. Comparing the figures of Shell & PSO 2011
In 2010 Shell increases its marketing budget from 185,485 Million to 329,815
Million which increase its sale which directly affect revenue which increases from
225 Billion to 250 Billion.
Whereas, PSO also increase its marketing budget from 167,465 Million and
358,507 Million but due to the declining of Pakistan Railways, Pakistan
International Airline and its other customers its revenue decreases from 14.2
Billion to 12.9 Billion.
0
100,000
200,000
300,000
400,000
2010 2011
RUPEESINMILLION
YEAR

19. Current Year Performance:
The current year financial report is not uploaded yet. But what data we concluded
from the half year and quarterly report is given below:
In 30th
September 2011 gross profit of Shell is 9,868,893 and sales is 187,958,915
In 30th
September 2012 gross profit of shell is 7,520,946 and sales is 175,822,315
So we can expect that revenue is decreased this year.
PSO didn’t upload any data till now.
Conclusion
2009
In 2009 Shell decrease its marketing budget from 496,098 Million to 401,551
Million which decrease its sale which affect directly the revenue of Shell and its
revenue decreases from 182 Billion to 180 Billion.
Whereas, PSO increase its marketing budget from 285,152 million to 310,861
million which increases its sale which affect directly the revenue of PSO and its
revenue increases from 13 Billion to 13.2 Billion.
2010
In 2010 Shell decrease its marketing budget from 401,551 Million and 185,485
Million but due to other factors and strong conditioning of the product its revenue
increasing from 180 Billion to 225 Billion.
Whereas, PSO also decrease its marketing budget from 310,861 Million to
167,465 Million but due to having customers like Pakistan Railway, Pakistan

20. International Airline, Pakistan Army etc. its revenue increases from 13.2 Billion to
14.2 Billion.
2011
In 2010 Shell increases its marketing budget from 185,485 Million to 329,815
Million which increase its sale which directly affect revenue which increases from
225 Billion to 250 Billion.
Whereas, PSO also increase its marketing budget from 167,465 Million and
358,507 Million but due to the declining of Pakistan Railways, Pakistan
International Airline and its other customers its revenue decreases from 14.2
Billion to 12.9 Billion.
2012
The current year financial report is not uploaded yet. But what data we concluded
from the half year and quarterly report is given below:
In 30th
September 2011 gross profit of Shell is 9,868,893 and sales is 187,958,915
In 30th
September 2012 gross profit of shell is 7,520,946 and sales is 175,822,315
So we can expect that revenue is decreased this year.
PSO didn’t upload any data till now.