FINAL PROJECT

FINANCIAL INSTITUTION PROJECT

SUBMITTED BY:ROMAH SAMEUL FA09-BBA-077 SAMIYA KAZMI FA09-BBA-081

PART A

KARACHI STOCK EXCHANGE

TABLE OF CONTENTS

Executive summary..4 Part 1: Stock Exchange5 KARACHI Stock Exchanges of Pakistan..5 KSE-100 Index Profile.....6 Categories and ratings of Stock..8 KSE stock analysis: 2012..9 Performance of KSE versus BSE.11 High and Low performance of stock exchange12 Stock Market Crash.14 Examples of stock market crash14 Interesting information.15 Conclusion: Part 1....15 List of abbreviations.16

EXECUTIVE SUMMARY

The first part of the project comprises of what a stock exchange market is really, and its worth for the health of an economy. However, The major focus in this project would be on the stock exchanges of Pakistan, and more prominently on the KSE Karachi Stock Exchange, as it is one of the most 'happening and prominent' stock exchanges of Pakistan. In the beginning of the project different categories of stocks that are listed as well as their categories and rankings are given . Moreover it will include the ratings and performance over the last month as well as the previous year. Further to get a deeper insight into practices of stock exchange, we will be comparing the KSE with an International stock exchange that is BSE (Bombay stock exchange). Moreover , this report highlights various reasons as to why the performance of stocks

fluctuates in the exchange and what are the factors which will effect the performance of the stock exchange market of any country and how its link to the economy of that country. This report also looks at the performance of the KSE over the past year 2012 .Lastly the project looks into the reasons for a stock market crash, and why it occurs. This also, highlights the prominent market crashes in the past. There is also some interesting information about the KSE is given at the end.

STOCK MARKET
A stock market is also known as equity market which is a public entity for the trading of companystock (shares). The stocks which are listed and traded on stock exchanges are entities of a corporation or mutual organization which have specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together at the same place. Some exchanges have physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auctionis used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers instantaneously. The other type of stock exchange is a virtual kind, collected of network of computers where trades are made electronically via traders. At the beginning of October 2008 the total size of the world stock market was estimated at about $36.6 trillion.(http://en.wikipedia.org/wiki/Stock_market)

KSE KARACHI STOCK EXCHANE. Karachi stock exchangeKSEwas established in September 18, 1947 . It is owned by 200 members/brokers.It has 1850 terminals exist at brokers end.At KSE trading currently takes place through a electronic system. I. II. III. Market capitalization of KSE is worth US 26.48 billion $ listed capital is US 9.65 billion. It showed return of 40.19% in 2007 There are 651 companies listed at KSE There are four indices KSE 100 KSE 30 KSE all shareindice
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IV.

KMI 30

INDEX PROFILE INFORMATION FOR KSE100

The Karachi Stock Exchange KSE100 Index comprises the top company from each of the 34 sectors on the KSE, in terms of market capitalization. The rest of the companies are picked on market cap ranking, without any consideration for the sector to make a sample of 100 common stocks with base value 1,000.

TOP GAINERS & LOSERS IN KSE100

% TOP GAINER Lafarge Pakistan Cem... Hum Network Ltd Allied Rental Modara... Engro Corp Ltd/Pakis... DG Khan Cement Co Lt... Shell Pakistan Ltd National Foods Ltd/P... Kohinoor Energy Ltd NishatChunian Power... PAK Suzuki Motor Co ... Change +9.83% +5.00% +4.80% +4.68% +4.05% +3.63% +3.51% +3.43% +3.14% +3.01%

% TOP LOSER Standard Chartered B... Bankislami Pakistan ... Colgate Palmolive Pa... Pakistan Tobacco Co ... Bank of Khyber/The Pakistan Telecommuni... Lotte Pakistan PTA L... Pakistan Internation... Clariant Pakistan Lt... Unilever Pakistan Lt... Change -9.68% -6.16% -5.00% -4.62% -4.35% -3.25% -2.58% -2.30% -2.00% -1.91%

(source:http://www.bloomberg.com/quote/KSE100:IND)

RATINGS OF STOCK EXCHANGE

The stocks are rated on the basis of their performance compared to the other stocks. A (Excellent) - The stock has an excellent track record for maximizing performance while minimizing risk, thus delivering the best possible combination of total return on investment and reduced volatility. B (Good) - The stock has a good track record for balancing performance with risk. Compared to other stocks, it has achieved above-average returns given the level of risk in its underlying investments C (Fair) - In the trade-off between performance and risk, the stock has a track record which is about average. It is neither significantly better nor significantly worse than most other stocks. With some funds in this category, the total return may be better than average, but this can be misleading since the higher return was achieved with higher than average risk. D (Weak) - The stock has underperformed resulting in a weak risk-adjusted performance. This fund has proven to be a bad investment over the recent past.

E (Very Weak) - The stock has significantly resulting in a very weak risk-adjusted performance. This fund has proven to be a very bad investment in the recent past.

U (Unrated) - The stock is unrated because it is too new to make a reliable assessment of its risk-adjusted performance. Typically, a fund must be established for at least three years before it is eligible to receive a TheStreet Investment Rating.

&

Ratings

Are

considered

to

be

Buy.

Ratings

Are

considered

to

be

Hold.

D & E Ratings - Are considered to be a Sell.

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(http://www.marketwatch.com/commentary)

RATINGS OF STOCK EXCHANGE OVER THE PAST YEAR 2012

During years 2011 and 2012 the performance of KSE had been remarkable. KSE was declared best emerging market for financial year 2011-12, this development and reduction of discount rates by 2 % by SBP has led the way to index striking historical level of 16,630 at 3 December 2012.

(http://www.tradingeconomics.com/pakistan/stock-market) The KSE-100 index galloped by an incredible 5,545 points during the year, starting out at 11,347 points at the beginning of the year and scheduled to end at around 17,000 points. The index has long since crossed its all-time high. Pushed by the latest 50bps cut in the DR to 9.5% and release of US$688mn in CSF flows, the KSE-100 gained 2% in Dec12 to bring 2012 gains to 49%. While the year started off with relations with the US at a trough (closure of NATO supply routes), gradual improvement saw ultimate release of pending Coalition Support Funds. On the domestic front, robust share price performance arose on a meeting of positive factors including strong corporate results, monetary easing (DR cut by a cumulative 450bps since Jul11) and capital gains tax reforms, the latter resulting in the highest average daily volumes (135.6mn shares) and value (US$49.78mn) in 3yrs. Despite the PKR depreciating by 8.42% vs. the US$, foreign investors remained key players net FIPI in CY12 came in at US$130mn. The textile sector provided an unbelievable
9

return

of

99

in

2012.

Analysts list many reasons for the rejuvenation of the textile sector. The growth of foreign demand and the weakening of rupee are said to be biggest factors. But of equally important to most corporate, mainly in the textile sector, is the heavy plunge in their financial expenses. That has direct relationship with the cost of borrowing.

As the monetary policy eased with interest rates cuts, corporates managed to retain money that they paid in on debt serving and even retire huge loans. The benefit has travelled down to the bottom-line of many highly-leveraged corporates in all sectors.

While the large cap stocks such as those in the oil and gas exploration and banking posted a slower growth, cement stocks were the top performers this year, with the sector giving out an aggregate of a mind-boggling 152 per cent return during the year.

Investors re-rated the sector on account of improved earnings, constantly growing local and foreign demand and firm prices.

All of that went to improve margins of cement producers. Further, reducing cost pressures due to decline in coal prices and interest rates also helped. says a sector watcher at a large brokerage house.

In regard to the phenomenal rise in prices of equities, Arif Habib, former chairman of KSE argues that in the low interest rate scenario there is ease of valuation, which, in turn, raises equity values. The demand for risk-free return investment avenues decreases and investors turn to stock exchanges in search of higher returns.

For corporates, the borrowing appetite increases with lower interest rates. Habib says that with low interest rates, consumer is comfortable with cash, which raises demands for goods and help fast moving consumer goods companies and others post a healthier top and bottom line.Yet most people believe that there is the need to bring bigger companies and bigger floats into the market and to expand the investor base. The number of companies registered with the Securities and Exchange Commission of Pakistan exceeds 60,000. Yet the number of listed companies is around 573. Only three companies made Initial Public Offering (IPOs) during 2012 to seek listing. (http://oly.com.pk/how-our-stock-exchange-perform-in-2012/)

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PERFORMANCE OF KSE VS BSE (BOMBAY STOCK EXCHANGE)

The BSE is the oldest stock exchange in Asia with a market capitalisation of over $1 trillion witharound 5,000 listed companies, making it the world's 14th largest stock exchange. The KSE has a market capitalisation of $40 billion with 652 listed companies.

Indians usually compare their economic performance with their giant neighbor China. But a comparison with Pakistan, at least of the stock markets, throws up some unexpected results. Shares on the Karachi Stock Exchange (KSE) have outperformed Indian stocks over the past five years. It has gained 44.3% in the past one year while the BSE (Bombay stock exchange) sensex, the barometer of the Indian stock market, has slipped 9% at 2,976. If an investor would have invested in an index fund that tracks the KSE index, his investment would have appreciated 23% over the past two years, 50% over the past three years and 87% over a four-year period.

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By comparison, a similar investment in the sensex would have resulted in a depreciation of 48% over the past two years and 65% over the past three years. The comparison between the Indian and Pakistani bourses has to come with a number of caveats. The size of the Pakistani market is very small. However, Pakistani shares have surged following significant economic backing by the US in exchange for the Pakistani support in the war against terrorism. The KSE index is at an all-time high due to this support, despite the economic differences between the two countries.
A partnership between the two exchanges would be significant since it is happening in the backdrop of both India and Pakistan announcing a series of measures to boost bilateral trade as goodwill gestures. The Reserve Bank of India is considering Pakistan's Habib Bank's application to set up a branch in Mumbai. Its counterpart State Bank of Pakistan is contemplating allowing Punjab & Sind Bank to set up its office in Karachi. Moreover, Pakistan has decided to grant India the Most Favoured Nation status from January 1 and has also expanded the list of items to be exported to and imported from India.

If the MoU between the two exchanges is signed by November-end, it could set the stage for more confidence building measures related to trade and business between the two countries. India's Commerce Minister Anand Sharma has already said that India is committed to improving relations with Pakistan.

(http://businesstoday.intoday.in/story/bombay-stock-exchange-karachi-stock-

exchange-to-form-alliance/1/190002.html)

(Source:

http://articles.economictimes.indiatimes.com/2002-08-12/news/27334632_1_kse-

index-fund-karachi-stock-exchange)

REASONS OF HIGH AND LOW PERFORMANCE OF STOCK EXCHANGE

Inflation: Inflation is a rise in prices across the board. Inflation causes your dollar/ currency to be worth less. Inflation is the reason a car costs $7,000 in 1981 and $17,000 in 2001. Over the long term, inflation is good because it means consumers are spending a lot of money and the economy is robust. When inflation is too high thoughconsumers pull back and spend less. After

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all, $5 is a lot of money to spend on a candy bar. When consumers spend less, companies don't make as much money. When companies don't make money, investors lose confidence in those companies. Many investors sell their stock because they believe the stock is worth less and is only going to decrease in price. As the demand for the stock decreases, the price of the stock decreases. When this happens to many companies in the stock market, the stock market experiences a downward shift.

Interest Rates: To bring inflation under control, the Federal Reserve System can raise the federal funds interest rate, which is the interest rate banks pay on loans they take from the Federal Reserve. Think of the Federal Reserve as a credit card for banks. When banks have to pay a higher interest rate, they often raise their own interest rates on loans and credit card accounts for businesses and individuals. This means that businesses and consumers must pay higher interest on borrowed funds. This usually causes consumers to spend less and businesses to borrow less. When businesses don't borrow money to develop that new widget, they tend to grow at a slower rate. When consumers don't buy things , businesses don't grow companies' and profits decrease, causing a stock price decrease. Conversely, when the Federal Reserve cuts the interest rate, investors tend to get excited. The cut means banks will be borrowing and lending more and at better rates. Businesses will grow and consumers will spend. Company profits will go up. Investors tend to buy, buy, buy!

Earnings: Profit means the company is doing well but due to Inflation and interest rates, when a company reports lower profits, investors lose confidence in the company and sell their stock, which decreases the value of the stock.

Energy Prices: People always need energy. Electricity and natural gas to keep us warm, cook our food and keep our computers happy. Therefore, the demand for energy is pretty constant. Only major changes in energy costs have a significant effect on the stock market.

Oil Prices: People almost always need oil, in the form of gasoline. When gas prices are high, however, some people look to alternative methods of transportation, carpools, public transportation, bikes, etc. Others keep paying the high price but, as a result, buy fewer consumer goods. The stock market tends to react negatively to high oil prices.

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International and Domestic Issues: War tends to affect the stock market negatively. The same goes for crime, fraud, and domestic or political unrest. Consumers worry when CEOs steal money, terrorists kill innocent people, or politicians are involved in serious scandals. Who knows what will happen next? Consumers save their money. Businesses make less money. Investors tend to dump their stocks, causing a fall in the market.

Fear: Besides being afraid of the market consequences of war, oil prices or a federal interest rate hike, investors are afraid of losing their money. Investors tend to dislike seeing their money dwindle as the price of their shares decreases.(http://money.howstuffworks.com/personalfinance/financial-planning/stock-market-trends1.htm) STOCK MARKET CRASH MEANS A stock market crash is usually defined as a sharp dint in share prices of equities listed on the stock exchanges. In corresponding with various economic factors, a reason for stock market crashes can also be due to panic and investing public's loss of confidence. Often, stock market crashes end hypothetical economic bubbles. There have been famous stock market crashes that have ended in the loss of billions of dollars and wealth damage on a massive scale.The social security and retirement plans are being increasingly privatized and linked to stocks and bonds and other elements of the market and also An increasing number of people are involved in the stock market increases the risk of its crash. There have been a number of famous stock market crashes like the Wall Street Crash of 1929, the stock market crash of 19734, the Black Monday of 1987, the Dot-com bubble of 2000, and the Stock Market Crash of 2008. Examples of Stock market crashes: One of the most famous stock market crashes started October 24, 1929 on Black Thursday. The Dow Jones Industrial lost 50% during this stock market crash. It was the beginning of the Great Depression. Another famous crash took place on October 19, 1987 Black Monday. The crash began in Hong Kong and quickly spread around the world.
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By the end of October, stock markets in Hong Kong had fallen 45.5%, Australia 41.8%, Spain 31%, the United Kingdom 26.4%, the United States 22.68%, and Canada 22.5%. Black Monday itself was the largest one-day percentage decline in stock market history the Dow Jones fell by 22.6% in a day. The names "Black Monday" and "Black Tuesday" are also used for October 28 29, 1929, which followed Terrible Thursdaythe starting day of the stock market crash in 1929. (http://en.wikipedia.org/wiki/Stock_market)

INTERESTING INFORMATION
The KSE is one of Pakistans largest tax payer and in the fiscal year 2006 -2007 it contributed over 4 billion towards the national exchequer. All listed companies contribute over 10% of total revenue collected by the Government of Pakistan. All KSE brokers on average pay more than 50% of their profit before tax as presumptive tax All investors pay 10 % tax on dividends.(http://www.kse.com.pk/)

CONCLUSION
Stock market is a public entity for the trading of company stock .Therefore, based on the study so far, it can be without a doubt said that stock market is an important part of the economy of a country. It plays a pivotal role in the growth of the industry and commerce of the country that eventually affects the economy of the country to a great extent. There is a set of rating methods through which each stock can be rated A for Excellent, B for Good etcwhich guide the investors to invest in which stock or not . Stock markets are also a good indicator of how the business and overall economy of a country works and whether any country is a good place to invest or not .This helps to attract the foreign investors There are certain factors which effect the stock markets trends which include the inflation rate in a country, interest rate , oil

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pricesetc . All of this can have a negative impact and eventually can end up in a stock market crash and the economy of the country will go in recession .whereas rising stock market is the sign of a developing industrial sector and a growing economy of the country.

LIST OF ABBREVIATIONS
IPO: Initial Public Offering KESC: Karachi Electric Supply Company PKR Pakistani rupee BSE SUNSEX Bombay stock exchange

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PART B
FINANCIAL INSTITUION PROJECT

IQBAL ALI LAKHANI

17

QUESTION

WRITE ABOUT ANY SUCCESSFUL OR INFLUENTIAL ENTREPRENEUR OF PAKISTAN WHO MADE A MAJOR IMPACT ON ECONOMY.

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CONTENTS
Executive summary Introduction Businesses Owned and Managed by Mr. Lakhani & Lakson Group of Companies Details of the major businesses COLGATE-PALMOLIVE PAKISTAN EXPRESS NEWS EXPRESS TRIBUNE LAKSON INVESTMENT LIMITED CYBERNET CENTURY PAPER AND BOARD MILLS LTD GROUP OF COMPANIES LAKSON GROUP Interesting Information Impact on the economy Lakson Group and Corporate social Responsibility Conclusion List of abbreviations References 20 21 23 25 26 27 27 28 29 30 30 30 31 32 32 33 34 35

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EXECUTIVE SUMMARY
Iqbal Ali Lakhani is a major business tycoon of Pakistan and ranked sixth amongst the richest people of Pakistan. He is currently the chairman of Lakson Group of companies accompanied by his other brothers. Mr. Lakhani owns a variety of business units and faces lot more problems as well. His group's collection consists of detergents and soaps, toothpaste, food products, fast food restaurants, insurance, internet services, software, paper and board, printing, powdered beverages and tea, packaging, publications, surgical instruments, and textiles. Mr. Lakhani has brought in many International Businesses lately like Mc Donalds and Kraft foods. Together with his other brothers they always tend to have strong rivalry with Hashoo Groups. Moreover if we have a look Lakhani group of companies have made it easy for Pakistani nation the access to major international manufacturers and brands in Pakistan.

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INTRODUCTION

Iqbal Ali Lakhani is a Pakistani entrepreneur belonging to Karachi's well-off Lakhani family unit that is reported to be amid the peak 22 richest families in the motherland. He is one of four brothers controlling the Lakson Group and he is the faction chairman. Their businesses are extremely varied. Their flagship business was the Lakson Tobacco Company which is the biggest tobacco exporter in Pakistan. The company was lately sold to Phillip Morris International. Lakhani, is the majority well-known of all Ismaeli tycoons. Their stakes vary from media, tobacco, paper, chemicals and surgical tools to yarn, paper, insurance, detergents, and Pakistans main data communication company CYBERNET and further house -hold matter, a lot of of which are joint ventures with important global conglomerates. ( Iqbalali Lakhani, Wikipedia, Web). Mr. Lakhani has more than 36 years of top organization knowledge in group companies in finance, marketing, mechanized business and administration relations. His particular interests comprise Marketing, Finance, Total Quality Management and

Reengineering. Mr. Lakhani is Chairman of the Corporate Boards of 5 Lakson companies which
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are scheduled on the stock exchanges of Karachi and Lahore. Mr. Lakhani was Chairman of the Cigarette Manufacturers Association of Pakistan, Agha Khan Economic Planning Board for Pakistan and Vice President of the American Business Council of Pakistan. Mr. Lakhani received B.A from the University of California Berkeley. He was a associate of the PSI-National Accounting fraternity; Honor Students Society, member of Phi Beta Kappa and received the departmental prize for exceptional undergraduate accomplishment. (Lakhani Groups, Accuray, Web) Mr. Iqbal Ali Lakhani is the Chairman of Lakson Investments Limited. He is the Chairman of Colgate-Palmolive (Pakistan) Ltd., Lakson Group, Century Insurance Co. Ltd., Century Paper & Board Mills Limited, Clover Pakistan Ltd., and Merit Packaging. before, Mr. Lakhani was the Chief Executive Officer at Century Paper & Board Mills Limited, Lakson Tobacco Co. Ltd., and Century Insurance Co. Ltd. He was the Chairman of Lakson Tobacco Co. Ltd.

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BUSINESSES OWNED AND MANAGED BY MR. LAKHANI & LAKSON GROUP OF COMPANIES

1. Colgate-Palmolive (Pakistan) Ltd. Lakson Group, Century Insurance Co. Ltd., Century Paper & Board Mills Limited, Clover Pakistan Ltd., and Merit Packaging Tetley Clover LTD Titan World Lakson Investments Owns a Mc Donalds Franchise chain in Pakistan Kraft General Foods (licensing Agreement) Tribune Express News Express Newspaper
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Tritex Cotton Mills Princeton Travels LTD Cybernet Sybrid

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DETAILS OF THE MAJOR BUSINESSES

LAKSON TOBACCO COMPANY

Lakson Tobacco Company is one of the principal tobacco companies in the tobacco business of Pakistan. It was inaugurated by Madam Fatima Jinnah in 1952. Lakson Tobacco
Company was recognized in 1971 by Mr. Hassan Ali Kara Bhai. In September 1971, they launched their primary brand Lakson King. In 1983, Lakhani brothers purchased the major controlling shares of PTI. It was a huge amalgamation certainly. In this method Lakson Premier Group was established. In January 1 9 9 7 , b y t h e v e r d i c t o f S i n d h H i g h c o u r t , t h e y c h a n g e d t h e g i v e n n a m e a s L a k s o n Tobacco Company. A t

the

present Muhammad Iqbal

Ali Lakhani is the

c h a i r m a n o f t h e L a k s o n t o b a c c o company. (Lakson Group, Lakson, Web)

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COLGATE-PALMOLIVE PAKISTAN

Colgate Palmolive Pakistan, one of the foremost manufacturers of individual heed and customer goods in the nation, it began its operations reverse in 1985 whilst the US granted the firm license to manufacture and market Colgate Palmolive products in Pakistan. Now, the firm is engaged in the manufacture and promotion of a quantity of of the important global brands of oral and private care products, bringing a a small number of of the world's most trusted household names such as Colgate Toothpaste. (Colgate-Palmolive Pakistan, Brecorder, Web)

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EXPRESS NEWS

Express News is an Urdu language Pakistani television news channel based in Lahore, launched on January 1, 2008. It is owned and sprint by the country's third major Urdu daily, Daily. The owners of the channel, Lakson Group, launched 'Express 24/7', a 24-hour Pakistani English news channel on February 5, 2009. Express News is the most-watched news channel of Pakistan. EXPRESS TRIBUNE

The Express Tribune is a Pakistani newspaper. The title launched on April 12, 2010, in Karachi in the sign of Century Publications Private Limited, fraction of the Lakson Group of companies. It is the first internationally allied newspaper in Pakistan, in corporation with The International Herald Tribune, the international version of The New York Times. The paper's self-proclaimed task is: "to defend the liberal values and egalitarian traditions we believe in, and which deserve to be upheld in writing that is together educational and understanding". The newspaper covers a diversity of topics ranging from politics to the economy, foreign policy to investment, and sports to culture. The paper identifies

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withcentre and its readership is generally on the mainstream left of Pakistani political and social opinion.

LAKSON INVESTMENT LIMITED

Lakson Investments Limited, the asset organization support of The Lakson Group, is licensed by the Securities & Exchange Commission of Pakistan to give asset management and investment suggested services in the Non Banking Finance Companies Rules, 2003 and Notified Entities Regulations, 2008. Lakson Investments at present manages six exclusive open end mutual funds. The Lakson Money Market Fund (LMMF) is intended for persons with a small term asset prospect, the Lakson Income Fund (LIF) caters to those with a middle investment horizon and the Lakson Equity Fund (LEF) provides diversified contact to household stocks. Lakson Investments is the merely Pakistani AMC to offer mutually domestic and internationally focused funds covering domestic stocks, domestic money markets, domestic fixed income, developed markets, emerging markets and global commodities. The finances are the Lakson Equity Fund (LEF), the Lakson Money Market Fund (LMMF), the Lakson Income Fund (LIF), the Lakson Asset Allocation Emerging Markets Fund (LAAEMF), the Lakson Asset

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Allocation Developed Markets Fund (LAADMF) and the Lakson Asset Allocation Global Commodities Fund (LAAGCF). In addition to the open end funds, Lakson managed financial records offers modified investment management services for investors with a minimum of PKR 25 million in investable assets. (Lakson Investment, Li, Web)

CYBERNET

CYBERNET is the main Internet and Data Communication Network Service Provider in Pakistan. The company offers a variety of services to the corporate and consumer sectors. CYBERNET akin to to consider that our partnership with their clients is their greatest credential. (Cybernet, Cyber.Net, Web)

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CENTURY PAPER AND BOARD MILLS LTD

Century Paper & Board Mills Limited (CPBM) is fraction of Lakson Group of Companies Pakistan. This business unit manages the paper related items and packaging tasks. (Cemtury Paper, CenturyPaper, Web)

GROUP OF COMPANIES
LAKSON GROUP Lakson Group was founded in 1954. The Group's collection consists of detergents and soaps, toothpaste, food products, fast food restaurants, insurance, internet services, software, paper and board, printing, powdered beverages and tea, packaging, publications, surgical instruments, and textiles. More over Lakson group deals in garments, leather, cloth, paper, packaging, textile, tobacco industry and many other areas of business in all over the country.

The Lakson Group, with its hub businesses centering on customer goods, generates sales revenues in excess of Rupees 34 billion* (US$ 570 million) annually. Group assets exceed Rupees 14 billion (US$ 230 million).

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Lakson group of companies is a state base group of companies. It comprises of different companies. There are 29 companies in the Lakson group of companies. The board of directors consists on Mr. Sultan Ali Lakhani, Iqbal Ali Lakhani, Amin Lakhani, Zulfiqar Ali Lakhani.

INTERESTING INFORMATION
The Lakhanis are at present having a tough instance at the hands of NAB. Sultan Lakhani and his three brothers sprint this prominent faction and the chain of McDonalds restaurants in Pakistan. NAB has suspected the Lakhanis of having created fake companies through worthless directors and raised huge loans from a variety of banks and financial institutions. The chairperson is at present abroad after having served a jail term with younger sibling Amin, though the latter was released much earlier. NAB had reportedly demanded Rs 7 billion from Lakhanis, but later agreed they pay only Rs 1.5 billion over a 10-year age. Lakhanis, like their arch-rivals Hashwanis, are the most well-known of all Ismaeli tycoons. Their stake array from media, tobacco, paper, chemicals and surgical equipment to cotton, packaging, insurance, detergents and other house-hold items, many

of which are combined ventures with leading global conglomerates. Though Lakhanis are in unstable waters at present, the success that greeted them during the last 25 years especially has been marvelous. They have rifts with big trade empires regardless of being known for their refined nature. Whether it is any government in Sindh or at the Federal level, Lakhani s have had trusted friends everywhere, though the present era has proved a painful exception.

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IMPACT ON THE ECONOMY

Lakhani Brothers since a very long time have benefited the economy. They have given major businesses to the country along with a lot of employment opportunities. Mr. Lakhani tend to have a greater scope towards the social responsibility factor as we have seen him being indulged in many social affairs along with a variety of charity and welfare works. Lakson Group of Companies has brought in many global SBUs n Pakistani which helped global firms to enter in here this also helped in getting a foreign direct investment too.

LAKSON GROUP AND CORPORATE SOCIAL RESPONSIBILITY

Lakson is following the environment, community and employees modules. The company is taking employees safety measures which show their serious concern about safety of the

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employees. All the welfare operations help them to create goodwill of the company in specific, and for Lakson group in general. (Impact of major business units on Pakistans Economy, MianSajidNazir, MehnoorIftikhar, Aiza, HussainRana, January 7, 2010)

CONCLUSION

Iqbal Ali Lakhani is a splendid example of how an entrepreneur should be. He proved by his work that a simple B.A degree holder can even make splendors in the business. Lakhani Brothers seeing as a extremely extended instance have profited the financial system of Pakistan. They have given main businesses to the state along with a lot of employ opportunities. Mr. Lakhani be inclined to have a greater range towards the communal liability issue as we have seen him being indulged in many social affairs along with a variety of charity and welfare works.

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LIST OF ABBREVIATIONS
Co. Company LTD Limited SBU- Strategic Business Unit PKR- Pakistani Rupee B.A Bachelors Of Arts PTC Pakistan Tobacco Company

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REFERENCES

http://en.wikipedia.org/wiki/Iqbal_Ali_Lakhani http://www.accuray.com.pk/aboutus/IqbalaliLakhani.asp http://investing.businessweek.com/research/stocks/private/person.asp?personId=29602806& privcapId=20412860 www.lakson.com.pk/ http://www.li.com.pk/company-profile/ http://www.cyber.net.pk/who_we_are/introduction.php http://www.centurypaper.com.pk/ http://www.findpk.com/yp/Biz_Guide/html/40%20Richest%20Pakistani.htm http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1532625

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