Pakistan limited

Rs 4.3 billion
Net sales 2008

11.56 %

Double-digit growth

Over 1200*

Group Profile
Sanofi-aventis, a global leader in the pharmaceutical industry, researches and develops medicines and vaccines to help improve the lives of the greatest possible number of people. R&D explores a broad spectrum of innovative approaches, and develops new products in the key areas of therapeutic expertise: Thrombosis, Cardiovascular diseases, Diabetes, Vaccines, Oncology, Central Nervous System disorders and Internal Medicine. The Company's growth is attributable to a regional approach to business operations, backed by a comprehensive portfolio of innovative products, mature prescription medicines, consumer health products and generics, as well as vaccines. By virtue of its commitments, sanofi-aventis constantly adapts its development model to the world's emerging human and economic problems.

* Including temporary employees



The Colors of Life

To create & sustain value by being recognized as a Pharmaceutical Industry Leader:
• • • Valued by patients & healthcare providers Sought-after as an employer Respected by the scientific community & our competitors

Our core strategy is to:
The abundant color in our rich palette is drawn from the hues of the millions of lives saved and the quality of lives improved by our products. The liberal use of color in the 2008 sanofi-aventis annual report signifies good health and well-being while reflecting the vibrancy of life. Create value by rapidly launching and successfully marketing innovative pharmaceuticals that satisfy unmet medical needs in large patient populations. Focus commercial resources on strategic brands to drive sales growth and maximize the value of existing and new global brands. Aggressively recruit and retain top talent, enhancing our capabilities in drug innovation and commercialization.



The key human and social component that links us all together, regardless of ethnic origin, culture or position, as we work for our mutual growth.

The power to control risks, the fighting spirit which helps us to both challenge ourselves and move forward to reach our objectives.

The freedom to explore the unknown: acting with our hearts and not just our heads, as we bring the future alive.

The basis of our endeavors: a source of excellence, achievement and innovation, the key to our future!

The capacity for imagination: using our intuition, making unexpected and productive connections, innovating in all our actions and communications.

The capacity to rally together as we drive back disease and give hope a chance: our mutual sense of responsibility when faced with adversity.

74900 Shakeel Mapara Dr.Z. Standard Chartered Bank The Royal Bank of Scotland Ltd. Moin Mohajir (Alternate Dr. Sector 22. Amanullah Khan Yasir Pirmuhammad (Chairman) (Member) (Member) (Secretary) Non-Executive Director Non-Executive Director Executive Director Head of Audit & Compliance Legal Advisors Azfar & Azfar Haidermota & Management Committee Tariq Wajid Masaud Ahmed Masood A. N.06 07 Board of Directors Syed Babar Ali Tariq Wajid Pir Ali Gohar Tariq Iqbal Khan Syed Hyder Ali Medical Affairs Auditors Ford Rhodes Sidat Hyder & Co. Moin Mohajir Murtaza Nooruddin Ethics Committee Yasir Pirmuhammad Dr. MCB Bank Ltd. Ghani Law Associates Bilal Law Associates Syed Qamaruddin Hassan Kundi & Kundi Postal Address P.khan@sanofi-aventis. Amanuallah Khan) (Alternate Shakeel Mapara) (Alternate Muhammad Amjad) Chairman Managing Director (Alternate Arshad Ali Gohar) IS Steering Committee Tariq Wajid Yasir Pirmuhammad M. Saadat Yar Khan & Co. Moin Mohajir Muhammad Amjad Dr.74000 Board Share Transfer Committee Tariq Wajid M.L. Amanullah Khan M. Grunwald Eric Le-Bris Jean-Marc Georges M. Box No. .74000. Karachi .Z. Sohail Manzoor Yasir Pirmuhammad URL Compliance yasir. Chartered Accountants Bankers Deutsche Bank AG Habib Bank Ltd. Amanullah Khan Salman Ahmed Masaud Ahmed Laila Khan Contacts Company Information laila. Company Secretary Muhammad Irfan Board Audit Committee Syed Hyder Ali Eric Le-Bris Dr.I.O. Moin Mohajir Registered Office Plot 23. Chundrigar Road.Z. 4962. Karachi . Naqvi Aslam Sheikh Aamer Waheed Zubair Rizvi Laila Khan Registrars & Share Transfer Office FAMCO Associates (Pvt.Z.) Ltd. I.khan@sanofi-aventis. State Life Building No. Korangi Industrial Area. 2-A. Karachi . Khan Mamoona F.

highspeed filling lines.08 09 Innovation & investment in production Production is a key element in the pharmaceutical sector.9 million packs per year. Liquids Transfer Project: area finishing works in progress Haemaccel Extension Project: incubation area extension Haemaccel Extension Project: new air handling unit . The objective of the Haemaccel extension project was to increase the production capacity of the plant from 1. The project was completed on schedule in December 2008 and is now in production. Industrial facilities have to be both reactive and competitive. The Haemaccel plant produces 1.2 million packs per year to 1. Industrial Affairs initiated 2 major projects in Karachi to: (i) modernize and upgrade production facilities & (ii) to enhance the production capability of Haemaccel. Liquids Transfer Project: external view of building Liquids Transfer Project: installations in final phase Liquids Transfer Project: installations in final phase The scope of the liquids transfer project is to relocate the manufacturing of all liquid products to Karachi and divest the Wah production site.2 million packs per year. High-tech product manufacturing plant will also be installed in this plant to ensure production of larger batch sizes and improved cGMP. The project included an extension to the plant area as well as the installation of new utility and production equipment. A new ultra modern production facility is currently under development in Karachi. This is insufficient to meet market demand. The plant is expected to commence commercial production by May 2010. Haemaccel Extension Project: new WFI plant Sanofi-aventis continued to make considerable investment in Pakistan during 2008. Upon the completion of this plant the annual production capacity will increase to 40 million bottles per year due to the installation of two state-of-the-art. Our capacity to react to new demand depends on the flexibility and creative potential of our industrial facilities.

A large proportion of R&D activities are also dedicated to Life Cycle Management which involves identifying and confirming new indications and modes of administration for commercially available drugs. • Acute urinary retention Developing an understanding of factors that contribute to the successful management of acute urinary retention associated with benign prostatic hyperplasia in men. oncology. more than 19. exploring all the potential therapeutic indications of each new compound. 30 to 40% of the R&D portfolio is made up of 'first-in-class' compounds.Supporting scientific discovery Throughout the world. heart ailments. the Medical Department made significant progress. central nervous system disorders and internal medicine. • Breast cancer An initiative to help define standards of care: characterizing the clinical profile of patients with early stage breast cancer and their management at country and global level. . They work across disciplines. which are unrivalled in the market for their unique mechanism of action. and investigating all possible links between the various expert therapeutic areas of the Company.000 sanofi-aventis R&D employees are focused on major therapeutic areas: thrombosis. diabetes and cancer. This testifies to the considerable creativity of the teams involved. vaccines. • Psychiatric disorders Defining bipolar psychiatric disorders • Diabetes Identifying appropriate therapeutic options to control blood sugar and blood pressure • Deep Vein Thrombosis (DVT) Defining the magnitude and burden of DVT. 10 11 Changing the way we look at disease In 2008. undertaking 13 clinical studies thereby putting Pakistan on the map of global medical science. The department focused on disseminating scientific clinical data and findings of the most current published medical literature related to disease areas and new treatment modalities particularly in the fields of blood pressure control. cardiometabolism. Today. a condition resulting from blood clotting in the deep veins and lungs Sanofi-aventis is committed to the improvement of standards of health care in Pakistan.

Employees of various seniorities and departments from all over Pakistan benefited from these opportunities. Pharma Associates & Field Executives) • • • • Team Skills Organizational Skills Mentoring and Guiding peers Giving and receiving feedback . we believe in investing in our most valuable resource.Seminars & workshops At sanofi-aventis. 12 13 Major training programs Sales Certification Olympics (for Sales Force) Selling Model practical implementation process Communication Skills (for Sales & Non-Sales Employees) • • • The importance of communication in an organization Communication Channels Communication Barriers Business Management Development Program (for New / Promoted DMs) • • • Basic Management Skills People Management & Business Management Skills Coaching & Business Planning Skills Cross Product Training (for Sales Force) Training on different products for re-structuring and re-alignment of teams Leadership Essentials (DM Competencies) • • • Competencies: What and Why Identified Core Competencies for District Managers Practical Behavioral demonstration of each competency through role-plays and practical learning activities Initial Sales Training Program (for Newly Inducted Pharma Associates) • • • • Company's orientation Basic Anatomy and Physiology and Disease Area Product and Competition Profile Selling Model Gearing up for the Future (for Sr. our human capital. A multitude of training seminars and workshops were conducted throughout 2008 covering a diverse range of topics and areas. These activities are integral to keeping our personnel abreast of the latest trends and advances while honing skills in their respective areas of expertise.

14 15 Leadership Quest (for Sales & Business Managers) • • • • • Leadership Challenges Leadership Styles Sales Force Management Change Management Business Communication Licensed 2 Lead (Train the Trainer) • • • Regional Initiative for District Manager's Development Identifying your Leadership Style MBTI Lantus Excellence (for Lantus Team) • • Advanced Selling Skills Reinforcement of Adoption Pathway Telfast Product Shoot 2007 .

Our team leaders recognize our individual strengths.” Dr. the opportunity last.B. At the time.B.B.B.S. I always envisioned myself at a dynamic organization with s t ro n g l e a d e r s h i p . I can say with confidence that sanofi-aventis “I joined offers the best working environment and sanofi-aventis ethical practices. I value the culture of teamwork in the company. Com. MA Economics Karachi University ACCA “I am thoroughly enjoying working at sanofi-aventis. Recently. it is imperative to work for a dynamic and innovative organization. but I wanted B. Additionally. I feel fortunate to be in such a progressive environment. Syed Moin Hussain Business Manager M.CBM . Sanofi-aventis is all about corporate social responsibility. In order to progress.Engineering . I found the employees very supporting and encouraging.Hamdard College of Medicine MBA Health Management (ongoing) .GIKI “My experience interning at sanofi-aventis has been outstanding.” Samra Khan Student IBA “My 3 years at sanofiaventis as a Medical Manager have provided me with endless learning opportunities. Business Development “For me. nurture them and motivate us by providing a platform to excel. I get to me. It is Junaid Khan a privilege to work for a company that Student CBM invests in its people!” Safdar Raza Imports Specialist Masters in Urdu Advance Karachi University BS . I'm very thankful to the management for providing me with this crossfunctional exposure. it stands firm on all moral and ethical grounds relating to the pharmaceutical industry. it was a moment of great pride when I joined sanofiaventis in 2007.” Dr. transferred to Business Development. sanofi-aventis fits that description just right! The multinational aspect is great as I get to interact with my counterparts in other countries. Although I worked in a multinational pharmaceutical in Canada. I returned to Pakistan and decided to rejoin sanofi-aventis. As an intern. S.B. Here. Ali Hassan Product Manager “While pursuing my M.PIMSAT “I have been associated with the company for seven years. Maliha Zahir Assistant Medical Manager M.” as a District Manager in Sales. but learning opportunities were very limited. this is exactly the type of organization I would like to be associated with.. where I’m learning something new every day! Thank you sanofi-aventis for giving me diversity in my career!” Furqan Hussain Field HR Manager (South) MBA . Projects are and each year geared around your areas of interest and leaves me with can change as you get a feel for the different more skills and functions in a business and as you discover confidence than the your forte.” Syed Zeeshan Hasan Assistant Manager. I get to explore and utilize my analytical and project management skills to the maximum. The supportive and friendly environment adds to the experience and contributes to my personal and professional growth. I was new to the pharma industry and the national and international exposure I got laid a strong foundation for me. This challenging project provided me with tremendous learning experience and helped me sharpen my skills.B. . I have interned at a few banks before. I joined the organization in Industrial Supply Chain and as a development move. My managers are easily to work with such a talented group of approachable and share their people was an incredible bonus for wealth of knowledge with me. I feel privileged to work with a cohesive team of talented individuals and strategic thinkers.-DOW Medical University MBA-IQRA University CCRA-McMaster University.S. and individual project time. I never imagined that one day I’ll be working in a multinational pharmaceutical.Our people Our strength “Sanofi-aventis promotes diversity by providing a focused long-term career through crossfunctional exposure.S. both exciting and Regulatory Affairs rewarding. Taking steps for a stronger tomorrow while taking care of the present is one of the traits of a visionary organization. Canada “My internship at sanofiaventis has been invaluable. My four Asma Zuberi years in Sales were Assistant Manager.” Salman Raza Assistant Industrial Affairs Controller B. where every member of the group plays an important role.Pharmacy further professional Karachi University enrichment.” Dr. your aventis for time is divided between working the past with other members of the organization three years. “I I have acquired a have wealth of knowledge been and am more focused working about my future career at sanofigoals. Since I am a firm believer in ethics and integrity. as a Product Manager. I've been given the opportunity to join the Marketing Dept.” attend various trainings abroad which further contribute to my learning. I was given the opportunity to work on a project preparing CAPEX for 2009 which would become a part of the budget plan. This diverse experience will assist in the strengthening and further advancement of my career in this industry. Sanofi-aventis was extremely supportive in my decision and offered me a position in Human Resources. After working at various companies in Pakistan.

2 million 1976 Researchers produced the first sample of human insulin. the Group's Vaccines division offers the industry's broadest range of products. Lantus®. It is the only basal insulin offering 24-hour efficacy with no pronounced peak. It delivers genuine comfort to patients. since it is impossible to deliver a sufficient dose. a long-acting insulin analog for patients with Type 1 and Type 2 diabetes. Innovative medicines: Lantus®. Amaryl®. third-generation orally administered hypoglemic sulfonylurea indicated for the treatment of Type 2 diabetes. In such conditions. 2007 Launch of Lantus ® SoloSTAR ® and Apidra ® SoloSTAR®. an anti-hypertensive agent. Every year. Clexane®. if necessary in one shot. 18 19 A portfolio addressing product With its extensive product portfolio. 2008 Launch of Lantus® SoloSTAR® and Apidra® SoloSTAR® in Pakistan. particularly suited for Type 2 diabetes. Lantus® is the most widely prescribed insulin in the world. SoloSTAR® was awarded the 2007 GOOD DESIGN prize by the Chicago Athenaeum Museum of Architecture and Design. glycemic control will deteriorate under oral treatment. Apidra®. sanofi-aventis addresses the most urgent medical needs. the leader in a growing market where prophylaxis is still under-developed. of innovation in diabetes 1921 Insulin was identified for the first time in Canada by Frederick Banting and Charles Best. whose broad range of indications places it in the first rank among branded cytotoxic agents. as slight pressure suffices to inject the right dose (30% less force than similar devices). This can increase the risk of cardiovascular (heart disease and stroke) and microvascular (kidney and ophthalmologic disorders. bringing innovative. people with diabetes. Lantus® SoloSTAR® helps patients overcome the barrier to acceptance of insulin injections and makes it easier to manage diabetes on a daily basis. 1923 Hoechst. Sanofi Pasteur. Lantus® SoloSTAR® is a pre-filled. 2000 The launch of Lantus® using recombinant DNA. vaccines for travellers and for regions where diseases are endemic. They can easily see the insulin dose and the injection is almost painless. a new fastacting insulin analog. 85 years The most prescribed insulin in the world. up until the production of the glargine insulin . They postpone the decision as long as possible. and singled out SoloSTAR®'s remarkable conception and leading-edge technology for improving the ability of patients to observe the most suitable treatment. which acts with no pronounced peak and makes it possible to maintain a low. It was designed to meet the everyday needs of Simple and effective insulin therapy Sales Rs. Genetic engineering drove considerable progress. for the treatment of Type 1 and Type 2 diabetes in adults. later to become part of sanofi-aventis. 31% growth 87. 1953 Hoechst launched the first insulin with 24-hour efficacy. with state-of-the-art sanofi-aventis technology to facilitate life for patients. disposable pen that enables patients to inject up to 80 units of Lantus® insulin. and Plavix®.Lantus®.. whose potential with eligible yet still un-treated patients opens up opportunities for growth. the leading brand worldwide in the treatment of diabetes. regular level of insulin for 24 hours using a single daily injection. By combining a daily dose of Lantus® with an intuitively easy-to-use injection pen that delivers a quick shot. the most widely prescribed insulin in the world. the first basal insulin analogous to slow-action human insulin. during or after a meal by patients with Type 1 diabetes and advanced Type 2 diabetes. Lantus® is indicated for people with Type 1 (adults and children) and Type 2 (adults) diabetes. this institution awards the world's most prestigious design prize. today's challenges Lantus® SoloSTAR® combines the best of Lantus®. . since patients are afraid of injections and the treatment's daily demands. Aprovel®. Patients tend to be frightened of insulin. amputations) complications associated with diabetes due to the late onset of treatment. a fast-acting human insulin analog taken before. One injection a day is sufficient to meet all basal insulin needs. who used a raw pancreatic extract to save the life of a young boy in a diabetic coma. Taxotere®. This marked the start of a long process of research into the disease. and many physicians hesitate to start insulin therapy for Type 2 diabetes. 1936 Hoechst developed the crystallization process that improves the purification and tolerance of insulin. from paediatric combination vaccines and vaccines against influenza and meningitis to booster shots.Comprehensive treatment for people with diabetes Sanofi-aventis offers a complete range of diabetes treatments that target each stage of the disease. was the first company to produce insulin. effective and welltolerated treatments to doctors for their patients. 2006 Launch in the United States of Apidra®.

A new form of CoAprovel® (irbesartan and hydrochlorothiazide) helps more at-risk hypertensive patients to reach their blood pressure goals. the hormone responsible for the contraction of blood vessels.Amaryl® continued to grow at a healthy rate of First-line oral treatment for type 2 diabetes Amaryl® is the only sulfonylurea to have demonstrated 24-hour efficacy against both fasting and postprandial hyperglycemia in a once-daily dose. Plavix® is rapidly consolidating its position as the foremost platelet antiaggregate agent for the secondary prevention of stroke. A dynamic brand In 1987. Clexane® delivered 2008 sales of over Rs. Today. Aprovel® is indicated for the treatment of hypertension and diabetic nephropathy in patients with Type 2 diabetes. the first fixed dose combination of a sartan and hydrochlorothiazide indicated as treatment for initial use in hypertensive patients who are likely to need multiple drugs to achieve their blood pressure goals. which eventually became Aprovel®. The most widely prescribed low molecular weight heparin in the world Clexane® is the most widely studied and used low molecular weight heparin (LMWH) in the world. million 66. 159 million at a healthy growth rate of 16%. . thereby permitting the normalization of arterial blood pressure. sanofi-aventis researchers working at the Montpellier research and development site discovered irbesartan. Aprovel® has an impressive track record of over three billion tablets sold every year in more than 100 countries.9 102% growth Extensive experience on efficacy and tolerability Millions of patients all over the world are being treated with Plavix® for the prevention of ischemic events caused by atherothrombosis. thereby preventing possible acute or chronic complications associated with deep vein or arterial thrombosis. Clexane® is an anti-coagulant used to inhibit the formation of clots in veins and arteries. It is also indicated in cases of severe and moderate hypertension. Launched in Pakistan in 2007. confirming the favourable benefitto-risk ratio of long-term management of atherothrombosis. It has been used to treat an estimated 200 million patients in more than 115 countries after 20 years of development and is approved for more clinical indications than any other LMWH. by stimulating the physiological mechanism of biphase insulin release. 10% 20 21 Sales over Rs. It acts by blocking the effect of angiotensin.

allergic conjunctivitis. It is a ready-for-use solution for intravenous infusion and can also be used as a carrier solution for various medicines. urinary tract infections and infections of the genital organs. skin and soft tissue infections. Phenergan also prevents motion sickness. chronic or recurrent lower respiratory tract infections. and treats nausea and vomiting after surgery and is effective in the relief of apprehension and inducing light sleep from which a patient can easily be aroused. Telfast® is an effective and potent antihistaminic agent. Non-sedating allergy relief Broad spectrum antibiotic Tarivid® (Ofloxacin) is a fluroquinolone antibiotic with a broad anti-bacterial spectrum. bone and joint infections. . million 432. The Telfast-D® formulation combines this antihistaminic with a prolonged-release decongestion agent. and meningitis due to susceptible pathogens in both adults and children.9 9% growth 22 23 16% A life-saving essential Double-digit growth Haemaccel® (Polygeline) is a plasma substitute for volume replacement used to correct or avert circulatory insufficiency due to plasma / blood volume deficiency. devoid of sedative effects and with a prolonged duration of action allowing administration once every 12 or 24 hours. resulting from bleeding or from a shift in plasma volume between the circulatory compartments. Flagyl® is effective for the treatment of parasitic infections caused by Trichomonas vaginalis or Entamoeba histolytica known to cause diarrhoeal disease. It is indicated for the treatment of hay fever and chronic idiopathic urticaria. Phenergan® (promethazine) is one of the most established antihistamines in the local market.9 23% growth Widely prescribed for gastroenteritis Today a household name and among the top-selling drugs in the country. prevention of surgical infections). urinary tract. urticaria and pruritis.An innovative antibiotic Claforan® is a third-generation Cephalosporin injectible antibiotic for the treatment of a wide range of infections including those of the respiratory tract. It is also indicated for surgical prophylaxis (i. Sales over Rs. million 829. Claforan® is manufactured in a state-of-the-art facility located in Karachi. skin and soft tissues. Tarivid® is prescribed for acute. Sales over Rs.e. Tarivid ® continued to grow at a rate of 6%. It is useful in perennial and seasonal allergic rhinitis.

targeted therapies.8% for Taxotere® despite a challenging year. the research strategy consists in attacking cancer on all fronts by targeting most of the mechanisms of action involved in the development. exploring innovative avenues to optimise patient management and care and entering into long term partnerships to discover and develop powerful new agents and strategies for prevention and treatment so as to provide all patients with the best possible solutions. and different processes have now been identified. Eloxatin® is a new-generation platinum salt that has brought major progress in the treatment of metastatic colorectal cancer by making surgery possible for a significant proportion of patients with isolated hepatic metastases by rapidly and significantly reducing metastasis size. anti-cancer treatments are either used to destroy all cancer cells (in which case they are known as cytotoxic agents). These two approaches are very often combined (and in some cases they include hormone therapy) to stop cell proliferation and the growth of the tumour. Modest growth of 3. comprised of microtubules which assemble and disassemble during a cell cycle.Oncology Attacking cancer on all fronts Sanofi-aventis' vision is to attack cancer on all fronts. They either cause it to disappear or at least stabilize the tumour. Taxotere® promotes assembly and blocks disassembly. which inhibits cancer cell division by essentially “freezing” the cell's internal skeleton. Since cancer is a multi-faceted disease. A cornerstone of chemotherapy for metastatic colorectal cancer in combination with new. growth. thereby preventing cancer cells from dividing and resulting in their death. and spread of cancer cells. Thanks to many years of research. 24 25 ® A reference chemotherapeutic agent for several types of cancer Taxotere® is a drug in the taxoid class. or aiming at more targeted treatments that block the cancer cell's mechanisms of action. Cancer means an uncontrolled proliferation of cells due to genetic mutations. 201% Remarkable growth . Sanofi-aventis' commitment to oncology is demonstrated by a series of successes (docetaxel and oxaliplatin) and its research into new therapeutic mechanisms. Apart from hormone therapy. sanofi-aventis now has a better understanding of the way cancer grows and spreads. which is aimed at specific types of cancer (such as prostate cancer). Eloxatin® holds out the hope of an extended lifespan and possible recovery for these patients.

viscous mucus. Omeprazole blocks the enzyme in the wall of the stomach that produces acid. and this allows the stomach and esophagus to heal. all caused by stomach acid. the production of acid is decreased. Rhinathiol® has been launched in different strengths for adults. including otitis media with effusion (glue ear) and chronic obstructive airway disease. Xerosec® (omeprazole) is a proton pump inhibitor used in the treatment of dyspepsia. By blocking the enzyme. Proton pump inhibitors (PPI) block the production of acid by the stomach. gastroesophageal reflux disease (GORD/GERD) and Zollinger-Ellison syndrome. peptic ulcer disease (PUD). . Rhinathiol® (carbocisteine) is a mucolytic agent for the adjunctive therapy of respiratory tract disorders characterized by excessive.New launches Bolstering our portfolio 26 27 The initial response to the launch of Xerosec® has been extremely encouraging. children and infants.

Tetanus. Either alone or in partnership. is the largest company in the world devoted entirely to human vaccines. effective and easier-to-use vaccines to market. the vaccine division of sanofi-aventis group. In addition. the sanofi pasteur R&D team is developing new generations of vaccines. for example. and sanofi pasteur is the undisputed leader in the field of influenza prevention. Vaccines provide an effective response to major diseases.5 ml Euvax B Injection 1ml Okavax Injection Polysaccharide meningococcal A +C vaccine .Creating vaccines. To prevent diseases in children. Adsorbed Diptheria. Sanofi Pasteur continued to bring innovative. sanofi pasteur remains at the forefront of influenza pandemic preparedness.Pertussis and conjugated Haemophilus Type b Vaccine Influenza type b conjugate. With tomorrow's health challenges in view. tuberculosis. The product portfolio consists of the following: Brand Name Generic Name Tetanus Toxoid Vaccine Poliomyelitis Vaccine Inactivated Vaccine against measles(schwarz strain) Mumps (urabe AM-9 strand) and Rubella (wistar RA 27/3 strain) Pneumococcal Polysaccharide Vaccine Rabies Vaccine Oral Poliomyelitis Vaccine Type 1 Trivalent Oral Poliomyelitis Vaccine Typhoid Vaccine Haemophilus influenzae Type b Vaccine (conjugated) Yellow Fever Vaccine Hepatitis A Vaccine Hepatitis A Vaccine Anti Rabies Immunoglobulin Adsorbed Diphtheria. malaria. pneumococcal infections. the research team is attacking such major diseases as dengue. adolescents and adults around the world. is a constant concern for health authorities throughout the world. is working on both innovation and improvement of vaccine delivery and modes of administration. a new business unit was set up in sanofi-aventis Pakistan limited to handle the vaccines business in Pakistan. cytomegalovirus. Chlamydia and Type B meningitis. Acellular Pertussis & Inactivated Poliomyelitis Vaccine Influenza Vaccine Hepatitis B recombinant Vaccine Hepatitis B recombinant Vaccine Live attenuated varicella virus Polysaccharide Meningococcal A + C Vaccine Vaccines: A key strategic focus Sanofi Pasteur. Seasonal influenza. generally as a preventive measure but sometimes as a therapeutic solution. Tetavax Imovax Polio Trimovax Pneumo 23 Verorab Oral monovalent Type 1 Opvero Typhim Vi Act-HIB Stamaril Avaxim 160 Avaxim 180 Favirab TetraAct-HIB Pentaxim Vaxigrip Euvax B Injection 0. protecting life 28 29 During 2008. Sanofi Pasteur offers the widest range of vaccines for 20 diseases.Tetanus. the R&D team of sanofi pasteur. the Group's Vaccines division.

The PWA provides blood to the underprivileged patients of Karachi free of cost. To reduce inequalities and provide better access to health for different populations and countries. access to care and treatment. A story was read out underlining the importance of washing the wound immediately with soap and cleaning it with an anti-septic ointment. well-equipped blood storage facility. Blood Camp Blood Donation Drive was held in association with the Patients' Welfare Association (PWA). “My child matters” supports hospitals. a WHO recognized organization that has a modern. cautioning them against contact with stray dogs and alerting them to the danger of rabies. A long term humanitarian strategy Organized around long term partnerships. Several CSR activities and projects were implemented. The President of the Infectious Disease Society and several doctors addressed the gathering. sanofi-aventis' humanitarian sponsorship is engaged today in building long term partnerships Innovative partnership programs include “My child matters”. lasting support Rabies Prevention September 28 is World Rabies Day. the responsibility of a leader programs for those most in need. This unique partnership aims to step up the fight against childhood cancer in countries where paediatric oncology is still struggling to become established. foundations and NGOs to develop pragmatic approaches to improve awareness. In 2008 this program was extended to 5 countries including Pakistan. sanofi-aventis' humanitarian sponsorship implements innovative. pain control and better management of the social and cultural aspects of the disease for both children and their families.2008 was an active year for sanofi-aventis Pakistan in terms of Corporate Social Responsibility (CSR). which was launched jointly in 2004 by sanofi-aventis and the International Union Against Cancer. mostly comprising school children. Sanofi-aventis Pakistan collaborated with the Pakistan chapter of the Rabies in Asia Foundation to raise awareness and understanding about the importance of rabies prevention at an event held at the Indus Hospital providing free of cost rabies treatment round-the-clock. Cancers in children show the widest gap in survival rates between rich and developing countries. . The blood camp received an enthusiastic response from employees and was a practical application of the value of “respect” as it demonstrated respect for human life and commitment to the motto: “because health matters”. early diagnosis. 30 31 Providing help.

A second program was organized in partnership with the Aga Khan University Hospital (AKUH) in Karachi. As a responsible corporate citizen.Considering the global safe drinking water crisis and its rapid escalation in Pakistan. sanofi-aventis' leading product Flagyl® teamed up with Nestle® Pure Life™ in a venture to spread awareness about health and hygiene. During the summer. almost 200 clinics throughout Pakistan were provided with Nestle® hot and cold water dispensers along with three months of free water supply. a leading social welfare organization working in the affected region. university students and NGO representatives. emphasizing and demonstrating self-examination techniques and addressing common misconceptions to an audience of women. . which is an institute in Jamshoro also collaborated with sanofiaventis Pakistan and AKUH by providing mobile mammography vans. when water-borne diseases are at their peak. The collection was presented to Dawn Relief. NIMRA. displaying “solidarity” with their countrymen and “respect” for human life. 32 33 Earthquake Relief Drive The province of Balochistan was hit by a devastating earthquake claiming over 300 lives and displacing thousands. stressed to an audience comprised of patients. signs and symptoms of breast cancer. sanofi-aventis Pakistan organized an Earthquake Relief Drive. where free of cost breast cancer screening sessions were conducted. Employees contributed generously. Breast Cancer Awareness Sanofi-aventis Pakistan collaborated with Shaukat Khanum Memorial Cancer Hospital & Research Centre (SKMCH) to support breast cancer awareness. An event was held at SKMCH (Lahore) where the importance of screening and early diagnosis was Diversity Day Diversity Day was organized to recognize and celebrate the contribution of women to the success of the company. during which an external speaker made a presentation on risk factors.

which were run across the country in major public and private diabetic centers/clinics. public awareness lectures were organized with a comprehensive presentation on 'Diabetes Prevention' and 'Better Management Techniques' in order to improve the quality of diabetic patients' lives. accountability and governance of the published annual reports of entries from South-Asian countries. transport & shipping category. Externally. “Celebrating 10 Years of Performance”. The campaign included a series of programs. management and complications. transparency.34 35 Diabetes Awareness World Diabetes Day was commemorated by spreading internal and external awareness about the disease. The awards. are conferred on the basis of evaluation administered by SAFA's committee on improvement. Patient awareness literature was also distributed during these presentations. under different categories. BMI assessments. blood glucose testing and HbA1c analysis were conducted. The sanofi-aventis Pakistan report was adjudged the winner of the bronze award in the hospitality. The 2007 corporate report The sanofi-aventis Annual Report for 2007 won the 5th prize in the 'Chemical & Fertilizer' category in the 'Best Corporate Report Awards' (BCRA) competition. Key facts and data on the prevalence of diabetes & brochures on diabetic care were disseminated. Amaryl patient awareness campaign entitled. In addition to free diabetes screening. A renowned doctor specializing in diabetic care gave a thorough and easy to understand talk on “Diabetes and its Complications”. care. International recognition of excellence came from the South Asian Federation of Accountants (SAFA) that holds an annual 'Best Presented Accounts Awards Competition'. symptoms. a prestigious annual event organized by a joint committee of the Institute of Chartered Accountants of Pakistan (ICAP) & the Institute of Cost and Management Accountants of Pakistan (ICMAP). sanofi-aventis supported two newspaper supplements commemorating World Diabetes Day by contributing articles delivering key messages on diabetes signs. health. diagnosis. These presentations were usually made by the Professor/Head of the department at the center/clinic. .

In order to educate doctors on drug quality. our gross margin. 1. the leader in anti Diabetic market.areas where major burden of disease lies in Pakistan. positive outcome of which is expected to add value to the Company’s business activities in 2009. mainly due to increased borrowing cost on account of monetary measures taken by the State Bank of Pakistan to control the rising inflation. Keeping in view the importance of paediatric segment. The company also actively participated in a World Diabetes Day organized by various institutions across Pakistan.5%. various events such as lectures by experts and Key Opinion Leaders. regardless of the duration of catheterization. sanofi-aventis participates in different scientific and medical congresses and workshops related to diabetes. Typhoid and Urinary Tract Infections are common infections affecting a large segment of the population. oncology and cardiovascular diseases etc.4. etc. Maintaining the tradition of facilitating academic activities. Clexane® and Cordarone®.A. diagnostic support for patients etc. On August 18. Daonil®. scientific product presentations. DVT Advisory Board members and leading Key Opinion Leaders of Medicine. 6000 patients were provided free early diagnostic facilities for detection of Typhoid and Urinary Tract Infections during the year. termination of royalty and technical fee agreement with our associated company. an ENDORSE seminar was arranged at the company Head Office in Karachi inviting 90 key doctors including ENDORSE investigators. sanofi-aventis S. Xatral® indicated for the management of Benign Prostate Hyperplasia (BPH) is a growing brand of sanofi-aventis Pakistan limited. With the introduction of Lantus® SoloSTAR® in December. marketing and administrative expenses at more or less the same level as last year by taking several cost cutting measures. Flagyl®. a separate Business Unit for vaccines was created during the year. As a part of creating awareness about venous thromboembolism. GPs were updated on management on diabetes and standard of care. The remaining 11% sales were made on credit to large hospitals and institutions. cardiovascular disease. on 4 products only. Claforan and Haemaccael plant visits were arranged for the doctors to demonstrate quality of sanofi-aventis products. . with the freeze on selling prices since December. To assess the current practice of Urologists in the management of Acute Urinary Retention (AUR) a study was conducted globally including Pakistan by the name RETENWORLD. seminars and symposia etc were organized during the year. In 2008 approx. 2008 we are confident to establish the ease of use of administering Insulin and helping more patients reaching their diabetes goal and therefore expects increase in sales of Lantus®. is moving rapidly towards the Billion landmark with double digit positive growth. infectious disease. Lantus® and Apidra®. oncology and Deep Vein Thrombosis etc. This erosion in margins is mainly due to Pak Rupee depreciation. 3. thus enabling them to enrich and update their medical practice. Effective credit controls are in place and we were able to reduce debtors’ turnover ratio from 13 days to 12 days as compared to last year. Overview We are pleased to inform that net sales for the year ended December 31.30 million) because of the reasons explained above. The latest ADA guidelines support the use of basal insulin in the early stage of diabetes helping patients reach their glycemic goals effectively and safely. 2001 continuing on the remaining products. Immediately following this event. Through clinicians.especially in fuel and energy. This growth is a result of innovative marketing initiatives like local speaker programs. However. The interim results of the study showed that treatment with a α1. with a market share of 4. Urology.27 million was significantly lower than last year (2007: Rs. Each brand team strived to introduce innovation to provide better management options of various diseases to clinicians. In order to curb the menace of counterfeit of Plavix®. increase in international prices of certain raw and packing materials. the Company launched its disaster recovery plan due to which there was only marginal operational impact of this incident. offers a complete range of anti diabetics which include Amaryl®. These initiatives helped sanofi-aventis to maintain market leadership position in several therapeutic classes in a very competitive environment. Industry Leadership According to the last IMS market report sanofi-aventis is now ranked 4th in the pharmaceutical industry of Pakistan. Gynecology. Radhakrishna Sothiratnam from Malaysia. labour costs. These financial statements have been prepared in accordance with the approved accounting standards as applicable in Pakistan and the requirements of the Companies Ordinance. General Practioners (GP) play a key role in the management of diabetes and are a primary contact point for the patient. Further. The cardiothrombosis team is responsible for promoting Plavix®. Lantus® plant visit in Germany was arranged for Key Opinion Leaders followed by lectures from experts around the world on the subject. We also organized an international level CME program "Mission Diabetes" involving two leading international speakers namely Prof. This event also provided the platform to launch SoloSTAR and SoloSTAR device registry in coordination with the Medical Department. Around 7000 doctors participated. to provide appropriate focus and increased coverage on all our products. This is mainly volume growth as we were granted price increases for “hardship cases” in the last week of November 2008. In order to promote and highlight sanofi-aventis state of the art manufacturing facility and processes.1 brand of sanofi-aventis Pakistan limited. however. 2. Finance cost increased by 34% over last year.38. The VTE guidelines in different specialities were also presented by Clexane® Key Opinion Leaders. . a campaign titled "Celebrating 10 years of Performance" was launched to commemorate the 10th anniversary of Amaryl® launch. diagnostic facilities like rapid HbA1c testing and diabetes detection drives were also organized free of cost for the patients at various clinics. water for life campaign and intravenous medication programs for health professionals.56% over the last year. especially on products with high turnover. 1984. Furthermore. Moreover.347 million registered a growth of 11. The Directors' report is prepared under section 236 of the Companies Ordinance. ICU and Anesthesiology. Anoop Misra from India and Dr. Profit after tax at Rs. infectious diseases.75. The activities were focused on major therapeutic areas throughout the year including medico marketing activities. etc. Surgery. Whilst sales recorded a healthy growth rate. as a percentage of net sales has reduced to just over 24% from nearly 28% last year. strategic products and new brands. pneumonia and bacterial meningitis. is one of the world’s leading pharmaceutical companies and is ranked number one in Europe. sanofi-aventis Pakistan limited. As mentioned last year. Xatral® was the most preferred alpha blocker in this study by Urologists. round table discussions. the no. Educational materials were also developed for the benefit of diabetic patients. 1984 and clause xix of the Code of Corporate Governance. Marketing and Medical Activities The marketing team at sanofi-aventis Pakistan limited designed strategies and innovative marketing initiatives to drive sales growth and maximize the value of brands while operating within the medico-marketing ethical framework. Despite the high inflation and other cost increases we managed to contain the total costs of distribution. Orthopedics. transportation costs. reduction in headcount. 2008 a fire broke out at the electrical sub-station building situated at the Karachi manufacturing site of the Company. 2008 at Rs. These results were shared with prominent Urologists of Pakistan. which included. 89% of our sales were on cash before delivery basis to 16 regional distributors. due to use of rented generators until restoration of the sub-station. The improved sales performance was mainly due to the restructuring of the sales and marketing organization in early 2008. Neodipar®. The campaign included Patient awareness and benefit programs at Diabetic clinics. the borrowings of the Company have also increased significantly due to increase in investing activities as part of our expansion policy. reduction in travel entitlements. Lantus team is promoting the use of insulins with long acting insulin analogue Lantus® and rapid acting insulin analogue Apidra® for diabetes patients of Pakistan. soaring inflation . due to some legal and procedural requirements vaccines private market business could not be started by the Company during the year. focused activities like round table discussions and local speaker programs were arranged covering indications like Sepsis. All such requirements have now been taken care of and our vaccines business unit has started functioning with participation in some of the Government tenders.Directors’ Report to the Shareholders 36 37 We are pleased to present the Annual Report and the Company's audited financial statements for the year ended December 31. Key events for the year for Cardiothrombosis team included CMEs on Acute Coronary Syndrome (ACS) and participation in major cardiology conferences while clinical trials in acute coronary syndrome remained in progress. Continuing Medical Education opportunities were extended to clinicians in different therapeutic areas like diabetes. Some of the key events for the year included Key Opinion Leader development and engagement of doctors through CMEs and participation in major diabetes conference and APDLS meeting which emphasized on building the concept of early insulinazation. patient information material was also developed and delivered to doctors to help them understand and educate their patients about the difference between fake and original Plavix®.blocker before a TWOC consistently improves the chances of successful catheter removal. osteoporosis. fuel and power cost as well as labour costs increased considerably which also impacted the gross margin and administration expenses of the company during the year under report. 2008.

acid reflux and Gastro duodenal ulcers incidence are on the rise. Accordingly. The profit. 8. participation in various conferences was also made to promote the generic products of the Company. patients and brands respectively through well-planned initiatives to ensure a meaningful contribution to society from a medicomarketing perspective.269 (1. higher level of our borrowings due to capital commitments and Pak Rupee depreciation.10 each. .8 million (2007: Rs. Lantus® SoloSTAR® is now launched in Pakistan and Apidra® SoloSTAR® is to be launched in 2009. Related Party Transactions All related party transactions.launched in December 2008: To help all patients with T1 and T2 diabetes achieve their treatment targets. This is evident from the fact that 4. The company maintains a full record of all such transactions. This includes two large scale studies recruiting over 1000 patients namely the SAVE study for Deep Vein Thrombosis (DVT) and PONDs study for Diabetes. diagnostic and promotional support to our clinicians. we also invested in technology and infrastructure upgrading. acute urinary retention. 6. profitability was lower than last year mainly on account of Pak Rupee depreciation. The medical director also attended a two week leadership training program conducted by the University of Chicago Graduate School of Business at Singapore campus. Profit. as compared to the end of the previous year. finance cost and capital expenditure etc has resulted in a significant increase of the running finance utilized under mark-up arrangements at the end of the year under report. which is progressing as per plan and the commercial production is expected to start in the second quarter of the year 2010.534. 2008 Unappropriated profit carried forward (13. a member of the medical team attended a six weeks course in medical ethics conducted by the Aga Khan University in collaboration with the Johns Hopkins University. were added to our product portfolio in 2008: Xerosec® (Omeprazole) .371 Profit for the year before taxation Taxation : Current .284 (2. diabetes and cancer. some other current assets.186. Due to dietary habits and life styles in Pakistan. Finance & Taxation As already mentioned earlier. Six SOPs were developed by the medical department that will help minimize patient related and business risks.270) (628) 36. increased borrowings rates and lower profitability as compared with prior years. cardiology. Capital expenditure of Rs.launched in January 2008: Xerosec® (Omeprazole) is a later generation specific inhibitor of the gastric proton pump in the parietal cells indicated for the treatment of Acid Peptic Disease. To summarize our various initiatives. the Medical Department undertook 13 clinical studies to address various questions of the medical community. However. sanofi-aventis is determined to improving standards of health care in Pakistan. USA. Investigators presented local data to Key Opinion Leaders in the respective off deferred taxation Profit available for appropriations Appropriations : Proposed final dividend @14% out of profits for the year ended Dec 31.for the year Prior Period Deferred Total Profit after taxation Unappropriated loss brought forward . The remarkable efficacy coupled with a good safety profile makes both Taxotere® and Eloxatine® the agent of choice in the treatment of cancer at every stage of the disease. 5. Solostar study was also initiated to coincide with the launch of the new insulin delivery devise Lantus® SoloSTAR®. were approved by the Board and these are in line with the transfer pricing policy with related parties approved by the Board previously. This year too.launched in July 2008: Rhinathiol® (Carbocystein) is for treatment of acute Bronchitis. deep vein thrombosis. Chartered Accountants. Health care professionals rate this as one of the best services in the industry. In addition to the manufacturing facilities. These clinical research projects. the Company has initiated a project for divestment of its Wah site.500 medical related queries were received from the medical profession. Rhinathiol® (Carbocystein) . taxation and proposed appropriations are stated below: ( Rs. taking into account economic recession. some of which are ongoing.40 per share of Rs. the Directors are pleased to recommend a dividend of Rs. As part of its facility improvement & rationalization program. including line extensions. Accordingly work on a new liquid manufacturing facility at the Karachi site was initiated. The following new products.414 1. Further. Financial Statements The financial statements of the Company have been audited and approved without qualification by the auditors of the Company. access to cutting edge articles to the medical profession and post-graduate students is limited.096 38.Directors’ Report to the Shareholders 38 39 The Oncology Franchise which offers Taxotere® and Eloxatine® regularly arranges various programs to enable oncologists to discuss the most recent research findings in cancer treatment. sanofi-aventis through its global network has real-time access to over 1000 peer-reviewed indexed journals which facilitate the academia in their research and keeping abreast with the latest innovations in the medical field. we were able to provide educational. as well as in equipment for improvement of GMP/EHS and security. for approval by the shareholders.8 million) was incurred during the year on expansion. We will establish SoloSTAR® as the preferred pen. Lantus® SoloSTAR® and Apidra® SoloSTAR® is the best combination of insulin and the easy to use pen that is easier to inject. in '000' ) 84. Comprehensive training sessions for field force were organized at the launch of Xerosec® and Rhinathiol®. Other capital investments were also made including expansion of the Haemaccel plant and upgrading of the IQC laboratory etc which are expected to start commercial production in first quarter of 2009.365 47.602) 46. consequent impact on profitability for the year. alongwith the terms and conditions. LANTUS® SoloSTAR® (insulin glargine) . Two national seminars were held to disseminate findings from the ENDORSE study on DVT published in the LANCET and the World Reten study on Benign Prostate Hypertrophy published in the British Journal of Urology. Over 5000 patients were recruited to 13 studies across Pakistan involving approximately 150 investigators during the year. 7. were in the areas of diabetes. With sparse library facilities available in the country. During 2008. Due to increasing environmental pollution and poverty the incidence of respiratory tract disorders is on the rise. 4. The department also focused on disseminating findings of the most current published medical literature related to disease areas and new treatment modalities particularly in the fields of hypertension. presentations were made to leading oncologists highlighting the features and quality of Taxotere®. increase in stocks. Concern for safety is a corner stone at sanofi-aventis.503) 22. Up-gradation of skills is an ongoing process at sanofi-aventis. breast cancer and psychiatric disorders. the original research molecule docetaxel.868 A good return & payout to shareholders is one of the primary objectives of your restated Actuarial loss recognized directly in equity . facility improvement and rationalization. supporting the Lantus® & Apidra® leadership position in the diabetes market. Ford Rhodes Sidat Hyder & Co. during 2008. frozen selling prices and soaring inflation resulting in an across the board cost increase including depreciation due to significant capital expenditure. Cashflow Pak Rupee depreciation. Capital Expenditure Expansion of production facilities and modernization of plant and machinery remains a high priority of the Company.

conducted for field staff. In 2008.Orientation Program for new employees (both at head office & industrial site). Transport & Shipping Category from the “South Asian Federation of Accountants”. such as electronic approvals (eAED) .donations to various institutions. 14. the Company's CSR program has a very wide scope encompassing initiatives in the areas of heath care. two employees were sent for the pilgrimage as the person sponsored in 2007 was not able to go.connectivity of all sales offices to head office via secure VPN. Flagyl® provided 200 clinics with Nestle hot and cold water dispensers during the summer.Directors’ Report to the Shareholders 40 41 9. Information Technology As part of our group strategies.collaborated with the Rabies in Asia Foundation to raise awareness about rabies prevention on World Rabies Day. Business Solutions: . . meeting timeliness and completeness of information.simplification of the appraisal process with a more user friendly format for field force performance appraisal. Pakistan. We expect Pakistan shall be able to secure grant(s) for the humanitarian project(s) in 2009.upgraded all sales offices to DSL high speed connectivity.organized an Earthquake Relief Drive to support victims of the earthquake which claimed over 300 lives and displaced thousands in Balochistan.blood donation drive in association with the Patients' Welfare Association (PWA).sanofi-aventis. which were run across the country in major public and private diabetic centers/ a joint venture with Nestle® Pure Life™ to spread awareness about health and hygiene.“Women's Day” was celebrated and a program was organized for all female employees which included presentation on Breast Cancer by an Oncologist. sanofi-aventis sends a non-management staff member to perform Hajj. 2008. The collection was presented to 'Dawn Relief'. Patient awareness literature was also distributed during these presentations. public awareness lectures were organized with a comprehensive presentation on 'Diabetes Prevention' and 'Better Management Techniques' in order to improve the quality of diabetic patients' lives. Accordingly.sponsored a Breast Cancer Awareness ad campaign with Shaukat Khanum Memorial Hospital during Breast Cancer Awareness month. total numbers of permanent employees stood at 789 (2007: 846). . Corporate Social Responsibility The Company operates in a socially responsible manner and is committed to the highest standards of corporate behaviour. The management's relations with the Collective Bargaining Agent (CBA) remained cordial and industrial peace prevailed throughout the year. .pk b.the sacred trip to Makkah often uses up a Muslim's entire life's savings.participation in a job fair at Expo Centre to create awareness about sanofi-aventis. we continue to invest more and more in IT and upgrade of related in new servers and Centralized Storage (SAN). . .enhancement of eTMS system that manages sales force monitoring. • electronic expense system that automatically calculates sales re-imbursements based on system generated travel plans and call history.“Leadership Quest” training for all Sales and Business Managers. infrastructure development and other social welfare activities. which. . excellent governance framework and dedication to best a. As of December 31.'My Child Matters'. . a leading social welfare organization working in the affected region.“Sales Certification” course . Following is a snapshot of the Company's CSR initiatives during the year: . . ethics and values. education. water and sanitation. “Celebrating 10 Years of Performance”.sessions on Communication skills for employees of Head Office / Sales. These awards reflect our unrelenting emphasis on accountability through transparency. . when water-borne diseases are on the rise. Developing 'National Guidelines on Rabies Management' in collaboration with the President of the Pakistan chapter of the Rabies in Asia Foundation. During the year our human resources department was involved in a number of projects. . Contribution to National Exchequer During the year the company paid over Rs. 12. 10. This also involves enhancement of internal controls over information in computers for District Managers in Sales department to enhance their productivity.Amaryl patient awareness campaign entitled. . Human Resource The principle of equal opportunity is central to our HR policies and we are committed to equipping all employees for their job roles and support them to realize their full potential. . These enhancements will increase retention of organizational data and facilitate efficient centralized storage for the entire organization. Every year. Awards for Best Practices and Corporate Reporting This year your Company has won national and international awards for the best presented corporate reporting for the year 2007. These presentations were usually made by the Professor/Head of the department at the center/clinic. • new reports for district managers to keep them updated with weekly sales summary customized for their team . Training and development plans are integral part of performance review process and includes specific training events to develop new skills. performance. IT spending during the year 2008 amounted to over Rs.workflow projects to improve productivity and create a paperless environment.Promoting Diversity . . . environment protection.279 million to the government and its agencies on account of various government levies including custom duty and income tax. . child welfare. inter-alia.8 million and following are some of the highlights relating to IT activities: Infrastructure: . primary and secondary sales consolidation.sessions on “Leadership Essentials” to roll out the District Manager Competencies. a UICC (International Union against Cancer) / sanofi-aventis partnership to improve the access to treatment care and support for children with cancer in low and middle income countries was also extended to Pakistan in 2008. thereby continuously enhancing qualitative aspects of management reporting. Health. 11. included: . This is part of an on-going effort to spread awareness about breast cancer. primarily supporting health and education in the country. Website All our stakeholders and general public can log on to the sanofi-aventis Pakistan limited website at www. . 13. . incentives. . Well over 80 employees registered to donate blood. In addition to free diabetes screening. The campaign included a series of programs. In July 2008. these include: • dashboard application to enable sales personnel to review and monitor their sales performance and indicators. the joint committee of the Institute of Chartered Accountants of Pakistan and the Institute of Cost & Management Accountants of Pakistan selected the annual report of your company for the year 2007 as the fifth best report in the “Chemical & Fertilizer Sector”. a WHO recognized organization providing blood to poor patients free of cost. We also won a bronze medal for the best presented accounts for the year 2007 in the Hospitality.

Infra Red Thermography conducted for workers.97 (2007: Rs. Hoechst GmbH. Chartered Accountants. Eric Le-Bris 3. 21. Secretary Chairman • • • • • • 24. 5.addition of sugar and cholesterol testing facility in our medical centre.752 Rs. Corporate and Financial Reporting Framework • • • The financial statements prepared by the management of the Company present fairly it’s state of affairs.041. Directors There was no change in the Board of Directors after the election of Directors in the last of 300 employees on first aid.3. is being continuously reviewed by internal audit.Arshad Ali Gohar (Alternate for Mr Pir Ali Gohar) . Mr. Pattern of Shareholding A statement of the pattern of shareholding is shown on page 81. Environment. 7.L. Z.7. 3. 17. 16.374 Rs.A. The Company has adopted the Code and is implementing the same in letter and spirit. 23.Directors’ Report to the Shareholders 42 43 15. audit committee is composed of the following 2 non-executive directors and one alternate Director: 1. Earnings Per Share Earnings per share after tax was Rs.000 ordinary shares from its associated undertakings viz. Key operating and financial data for the last 6 years is shown on page 84.Mark Georges) . learning experiences.Grunwald) No. 2008 (audit in progress) was as follows : Provident Fund Gratuity Fund Pension Fund • • Rs. Syed Hyder Ali 2. Auditors The Audit Committee and Directors recommend retention of the retiring Auditors’ Messrs Ford Rhodes Sidat Hyder and Co. Our commitment to Environment. During the last business year four meetings of the Board of Directors were held. Mr.620. Amanullah Khan Mr. France. Statement of Ethics and Business Practices The Board has adopted the Statement of Ethics and Business Practices. as applicable in Pakistan. The process of review will continue and any weakness in controls will be removed.214. Dr. There has been no material departure from the best practices of Corporate Governance as detailed in the listing regulations. 6. . if any.. Health & Safety is manifested in all our activities as no major accident was reported in 2008. Health & Safety The Company recognizes safety as the key component of operational excellence and gives utmost importance to training of employees and contractors to enhance safety awareness and actively incorporate industry best practices in the overall operating setup. Following are some of the key activities undertaken during the year with an objective to attain highest safety standards: . Proper books of accounts of the Company have been maintained. International Accounting Standards. 2009. Attendance by each Director was as follows : Name of Director Messrs : 1. Moin Mohajir . gratuity and pension funds based on their accounts as on December 31. Appropriate accounting policies have been consistently applied in preparation of financial statements except for change arising from amendments of applicable accounting standards or interpretations and accounting estimates are based on reasonable and prudent judgment.K.479. 4. Amanullah Khan (Alternate for Mr J. suppliers and regulations. A confirmation that these rules have been followed is obtained from all employees every year. France and the ultimate parent of the Group is sanofi-aventis S. have been followed in preparation of financial statements and any departure therefrom has been adequately disclosed.Dr.246.81).emergency drill conducted for industrial affairs and head office employees. Syed Babar Ali Tariq Wajid Pir Ali Gohar Syed Hyder Ali Tariq Iqbal Khan Jean Louis Grunwald Eric Le-Bris Jean-Marc Georges M. During the year. the result of its operations. for the year ending on December 31. In compliance with the requirements of the Code for Corporate Governance. 22. There are no significant doubts upon the Company’s ability to continue as a going concern. the Company has reassessed the useful lives of the EDP equipments included within factory and office equipment and decided to write off the cost of all EDP equipments with the exception of computer servers over 4 years instead of 3 years to reflect more accurately the relationship between the effective useful life of the assets and depreciation charge.924. The value of investments of provident. Compliance with the Code of Corporate Governance The Stock Exchanges have included in their listing rules the Code of Corporate Governance (Code) issued by the Securities & Exchange Commission of Pakistan. Germany and Plasma Investments (U. . Audit Committee There was no change in the composition of audit committee during the year. 19. 2.628 The outstanding duties. 18. cash-flows and changes in equity.513. 8. . contractor safety and other key safety elements. Yasir Pirmuhammad (Head of Internal Audit) safety inspection conducted for head office employees with company doctor as auditor. statutory charges and taxes.) Limited respectively as part of global restructuring program. of Meetings Attended 4 4 1 3 1 none none none 4 1 3 3 3 . 9. fire fighting.. During the year SECIPE acquired 3. All employees are informed of this Statement and are required to observe these rules of conduct in relation to customers. Holding Company The Company is a subsidiary of SECIPE. The system of internal control which is in place.469 and 1. Eric Le-Bris) .Shakeel Mapara (Alternate for Mr.Mohammad Amjad (Alternate for Carmelo D'Ancona / Jean. and . have been duly disclosed in the financial statements.169.

during the year 2009 which we believe shall also contribute to our top line. including line extensions to our existing portfolio of products and generics. vaccine-economics. It comprises of three members. 14) The Company has complied with all the corporate and financial reporting requirements of the Code. These initiatives will help build the concept of vaccines for all age groups and eventually make the sanofi pasteur brand synonymous with vaccines in Pakistan.8 million were expanded during the year under report. General The Board looks forward to the forthcoming Annual General Meeting of the shareholders to discuss Company performance in 2008. the vaccines’ registrations were transferred to sanofi-aventis Pakistan limited and a separate Business Unit was formed together with plans to initiate various programs including vaccine awareness. Written notices of the Board meetings. A complete record of particulars of the significant policies along with the dates on which they were approved or amended has been maintained. We also plan to launch few more new products. modernization. 26. growth in profitability will be largely dependent on. At present the Board includes 7 non-executive Directors. However. All the resident Directors of the Company are registered as tax payers and none of them has defaulted in payment of any loan to a banking company. whereby a listed company is managed in compliance with the best practices of corporate governance. By order of the Board Syed Babar Ali Chairman Karachi: 13th February. Thus. we had a planned capital expenditure of over Rs. Company Secretary and Head of Internal Audit during the year. which has been signed by all the directors and employees of the Company. 13) The Directors. a) No trade in the shares of the Company was carried out by the Directors. has been declared as a defaulter by that stock exchange. For incoming Directors the orientation course will be arranged in due course. A synergy is being developed between sanofi-aventis and sanofi pasteur products through joint planning and implementation. Statement of Ethics and Business Practices has been approved by the Board and signed by all Directors and employees of the Company as per the requirement in the Code of Corporate Governance. Statement of Compliance with the Code of Corporate Governance for the year ended December 31. being a member of a stock exchange. • • 25. All the powers of Board have been duly exercised and decisions on material transactions. and educational activities. and upgrading of our production facilities. Most of the expenditure relates to expansion. In March. The Company has prepared a “Statement of Ethics and Business Practices”. 11) The Directors Report for this year has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed. 43 and 36 of listing regulations of the Karachi Stock Exchange (Guarantee) Limited. sanofi-aventis group has launched acquisition projects concerning a couple of leading generic companies in a move to accelerate sales growth and further extend its pharmaceutical portfolio in emerging markets. CEO. showing group’s commitment not only in the pharmacy field but also in the generic field.Directors’ Report to the Shareholders 44 Leave of absence was granted to Directors who could not attend the Board Meetings and they were represented by their respective alternates. CEO and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding. sanofi pasteur vaccines have been marketed in Pakistan through a distributor and your Company is ranked number 4th in the vaccine business although globally sanofi pasteur is the largest in vaccine business and serves nearly a quarter of the global market providing protection from 20 infectious diseases. Casual vacancies occurring in the Board during the year were duly filed up by the Directors within 30 days thereof. stability of the Pak Rupee and control of inflationary trend in the country. 2008 45 This statement is being presented to comply with the Code of Corporate Governance contained in Regulation No. except for one director. for the purpose of establishing a framework of good governance. along with the agenda and working papers. notwithstanding the events described above and expect good growth potential for the pharmaceutical industry in Pakistan. The Board has developed a vision / mission statement. in his absence. The directors have confirmed that none of them is serving as a Director in more than ten listed companies including this Company. these expectations are subject to future events and are subject to change. 37. and is profoundly thankful for the trust and confidence reposed in the Board by the shareholders. including appointment and determination of remuneration and terms and conditions of employment of the CEO and other executive Directors. DFI or an NBFI or. 12) The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board. out of which 4 directors represent minority shareholders.Vaccine Business integration: As mentioned earlier.1 billion starting from 2008. 9) 10) There were no new appointments of CFO. The meetings of the Board were presided over by the Chairman and. 15) The Board has formed an audit committee. The terms of reference of the committee has been formed and advised to the committee for compliance. Executives and their spouses & minor children. 2009 Tariq Wajid Chief Executive 17) The Board has set-up an effective internal audit function. The Company has applied the principles contained in the Code in the following manner: 1) The Company encourages representation of independent non-executive directors and directors representing minority interest on its Board of Directors. . have been taken by the Board. product launches and line extensions in 2009 . by the Director elected by the Board for this purpose and the Board met atleast once in every quarter.New Products and Line Extensions in Pharmaceuticals Business: During the year 2008. who has been given special relaxation by SECP in this matter. overall corporate strategy and significant policies of the Company. two of whom are non-executive directors including the chairman of the Audit Committee. CFO. for over 20 years. We are exceedingly grateful to our employees as good results are first and foremost due to people. The continuously high level of capital expenditure every year demonstrates a vote of confidence of the main shareholders of the company to the country and its economic management. were circulated atleast seven days before the meetings. Future Outlook New line of business. 8) c) Sales & Profitability We believe your company has the potential to maintain sales growth in the year 2009. 16) The meetings of the audit committee were held once in every quarter prior to approval of interim and final results of the Company and as required by the Code. All the Directors on the Board are fully conversant with their duties and responsibilities. Lahore Stock Exchange (Guarantee) Limited and Islamabad Stock Exchange (Guarantee) Limited respectively. balancing.534. The minutes of the meetings were appropriately recorded and circulated. continued cost controls. Although the sales volume growth is expected to contribute positively to the bottom line. Company Secretary. . and thank all the employees whose efforts played a major role in the results achieved in 2008. 2) 3) 4) 5) 6) 7) b) Capital Expenditure As mentioned last year. out of which Rs.

their spouses and minor children do not hold shares of the Company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountants of Pakistan. Lahore and Islamabad Stock Exchanges. where the Company is listed. 2008 46 18) The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the quality control review programme of the Institute of Chartered Accountants of Pakistan. that they or any of the partners of the firm. to the extent where such compliance can be objectively verified. Based on our review. 43 and 36 of Karachi. Syed Babar Ali Chairman Tariq Wajid Chief Executive Karachi: 13th February. Chartered Accountants Karachi: 13th February. whether the Statement of Compliance reflects the status of the Company’s compliance with the provisions of the Code of Corporate Governance and report if it does not. By order of the Board Review Report to the Members on Statement of Compliance with Best Practices of Code of Corporate Governance 47 We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance prepared by the Board of Directors of sanofi-aventis Pakistan limited to comply with the Listing Regulation No. nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Company’s compliance. respectively. The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Company. 37. 20) We confirm that all other material principles contained in the code have been complied with. A review is limited primarily to inquiries of the Company personnel and review of various documents prepared by the Company to comply with the Code. As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. in all material respects. 2009 A member firm of Ernst & Young Global Limited . 2009 Ford Rhodes Sidat Hyder & Co. Our responsibility is to review. with the best practices contained in the Code of Corporate Governance as applicable to the Company for the year ended 31 December 2008. 19) The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard.Statement of Compliance with the Code of Corporate Governance for the year ended December 31. We have not carried out any special review of the internal control system to enable us to express an opinion as to whether the Board’s statement on internal control covers all controls and the effectiveness of such internal controls.

361 3. 1984.428.114.428. An audit also includes assessing the accounting policies and significant estimates made by management.124 73. and the business conducted. in our opinion: the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance.136 212. the balance sheet. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. plant and equipment Intangible asset Long-term loans Long-term deposits CURRENT ASSETS Stores and spares Stock-in-trade Trade debts Short term loans and advances Trade deposits and short-term prepayments Other receivables Taxation .527 542. and in our opinion.355 2. cash flow statement and statement of changes in equity together with the notes forming part thereof for the year then ended and we state that we have obtained all the information and explanations which.820 8. evaluating the overall presentation of the above said statements. 2009 21 2. It is the responsibility of the Company's management to establish and maintain a system of internal control.278 1. after due verification. profit and loss account.842 CONTINGENCIES AND COMMITMENTS TOTAL EQUITY AND LIABILITIES The annexed notes 1 to 39 form an integral part of these financial statements. 2008 49 December 31. its cash flows and changes in equity for the year then ended. cash flow statement and statement of changes in equity together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan. give the information required by the Companies Ordinance.797. investments made and the expenditure incurred during the year were in accordance with the objects of the Company. An audit includes examining.448 1.951 24. Ford Rhodes Sidat Hyder & Co.185 1. and.623.249 729 6.984.240. and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance.186 1.512 1.676 1.624 1.077.252 269.448 1. We conducted our audit in accordance with the auditing standards as applicable in Pakistan.596 688. December 31.920 24.payment less provision Cash at banks We have audited the annexed balance sheet of SANOFI-AVENTIS PAKISTAN LIMITED as at 31 December 2008 and the related profit and loss account. 2009 Tariq Wajid Chief Executive . Chartered Accountants Karachi: 13th February.116.164 1. 1984. Zakat deductible at source under the Zakat and Ushr Ordinance. 1980 (XVIII of 1980).355 42.984.769. the expenditure incurred during the year was for the purpose of the Company's business.585 135.087 18 19 20 (d) 892. in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at 31 December 2008 and of the profit.104.543 26.147 96. with which we concur. We believe that our audit provides a reasonable basis for our opinion and. 1984.188 40.789 100. to the best of our knowledge and belief.195.086 872.944 3. as stated in note 3.887 2.021 137. 4 5 6 7 1.425 8 9 10 11 12 13 14 40. were necessary for the purposes of our audit.612 70. proper books of account have been kept by the Company as required by the Companies Ordinance.130 10. we report that: (a) (b) (i) in our opinion. 2008 2007 -------------Rupees in '000------------(Restated) Note ASSETS NON-CURRENT ASSETS Fixed assets Property.053 A member firm of Ernst & Young Global Limited Syed Babar Ali Chairman Karachi: 13th February. 1984.020.325 790. was deducted by the Company and deposited in the Central Zakat Fund established under Section 7 of that Ordinance. on a test basis.676 2.102 1.912 1. Our responsibility is to express an opinion on these statements based on our audit.053 NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE TOTAL ASSETS EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Share Capital Reserves NON-CURRENT LIABILITY Deferred taxation CURRENT LIABILITIES Trade and other payables Accrued mark-up on short term borrowing Short-term borrowing 15 (ii) (iii) (c) 16 17 96.998 32.871 2. evidence supporting the amounts and disclosures in the above said statements.384 8.944 151. in our opinion and to the best of our information and according to the explanations given to us.017.802 2. as well as. and are in agreement with the books of account and are further in accordance with accounting policies consistently applied except for the change.Auditors’ Report to the Members 48 Balance Sheet as at December 31.

392) 52.365 (46.269 (42.705) 1.346.060 375 (486.542) 1.271) (42.243) (540.725 (756.800) 48.616) 3.778) (384.365) (186.891 (40.947 1.638 (903.554) (105.055.326) (62.874) OPERATING PROFIT Finance costs PROFIT BEFORE TAXATION Taxation NET PROFIT FOR THE YEAR 27 26 171. 2008 2007 -------------Rupees in '000------------(Restated) Cash Flow Statement for the year ended December 31.302 23 23 24 25 (757.135) (122.627) (57.267 (2.083) BASIC EARNINGS PER SHARE (Rs.878 (64.003 (183.97 7.81 CASH AND CASH EQUIVALENTS AT END OF THE YEAR The annexed notes 1 to 39 form an integral part of these financial statements.589) 75.847) 180.781) 21.000) (68.478 (87.278) (230.113) 84.565 (103) 30.083) 30 (870.583 100 198.271) (330.070 Note Note CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations Finance costs paid Income tax paid Retirement benefits paid Long-term loans and advances (net) Long-term deposits (net) Net cash generated from operating activities CASH FLOW FROM INVESTING ACTIVITIES Capital expenditure Sale proceeds from disposals of operating fixed assets Interest received Net cash used in investing activities CASH FLOW FROM FINANCING ACTIVITIES Repayment of long-term finances Repayment of short-term loans Dividends paid Net cash used in financing activities NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 29 NET SALES Cost of sales GROSS PROFIT Distribution and marketing expenses Administrative expenses Other operating expenses Other operating income 22 23 4.582) (155. Syed Babar Ali Chairman Karachi: 13th February. December 31. 2008 51 December 31. December 31.403) (63. 2009 Tariq Wajid Chief Executive .084. 2008 2007 -------------Rupees in '000------------(Restated) 366.613) 2. per share) 28 3. 2009 Tariq Wajid Chief Executive Syed Babar Ali Chairman Karachi: 13th February.811.824) 1.809 (884.896.823 3.Profit and Loss Account for the year ended December 31.528 (3.309) (2. The annexed notes 1 to 39 form an integral part of these financial statements.345) (534.987) 115. 2008 50 December 31.096) 38.290.301) (105.501) (540.393 209.537) (132.070 (47.877 (65.500) (100.

(ii) Post retirement benefits The Company has post retirement benefit obligations. 23. 2008 52 Capital Reserves Issued.[note 3] Final dividend for the year ended December 31.538 150.842) 303. The shares of the Company are listed on Karachi. as a public limited company.116.124 (966) 338 38. the provisions or directives of the Companies Ordinance.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Statement of Compliance These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan.000 835. Syed Babar Ali Chairman Karachi: 13th February.114. which are determined through actuarial valuations using various assumptions as disclosed in note 13.194 (68. 1984 shall prevail.000) 36.269 7.000 - 685.000 18.448 96.935 5. (iii) Taxation The Company takes into account the current income tax laws and decisions taken by appellate authorities while recognising provision for income tax. The amounts are not provided for matters. 2008 96. The registered office of the Company is located at Plot No.000 6. 2008 53 1.167 (966) 338 38.935 18. 2006 Transfer to general reserve Balance as at December 31.448 5.000) 141.2 Significant accounting judgements and estimates The preparation of financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates. based on the history of the transactions.[note 3] Balance as at January 01. subscribed and paid-up share capital Difference of share capital under scheme of arrangement for amalgamation Notes to the Financial Statements for the year ended December 31.269 (42.000 935.320 685.538 100. 2007 as restated Actuarial gains / (losses) taken directly to equity [note 13.736 (32. 2009 Tariq Wajid Chief Executive . Karachi.302 10. Management believes that if the final outcome of the cases differs from the management's assessment.116. disclosed in note 21. 2007 as restated Actuarial gains / (losses) taken directly to equity [note 13.371 1.736 (32.036 7.1(c) below. for making provisions for the doubtful debts whereas provision for stocks is based on the current market conditions.141 13. 2007 as previously reported Effect of change in accounting policy on account of recognition of Employees Benefit Cost under IFRS-2 “Share-based Payment” and IFRIC-11 “Group and Treasury Share Transactions”.612 The annexed notes 1 to 39 form an integral part of these financial statements.771) 75.194 17.771) 75.141 96. Korangi Industrial Area. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance. 2.116. Sector 22.842 10.000 18. 2008 Employee benefit cost under IFRS 2 “Share-based Payment”. VII of 1913.538 (6.437) (100. 2. (iv) Share based compensation plans The Company has share-based transactions involving group companies shares accounted for using various assumptions as disclosed in note 17. or areas where assumptions and estimates are significant to the financial statements are as follows: (i) Provision for doubtful debts and stocks The Company has used judgements.1 below.935 18. Lahore and Islamabad Stock Exchanges. It also requires management to exercise its judgement in the process of applying the Company's accounting policies.220 1. It is engaged in the manufacturing and selling of pharmaceutical products. THE COMPANY AND ITS OPERATIONS The Company was incorporated in Pakistan in 1967 under the Companies Act. 1984.3] Deferred tax on actuarial loss recognised Net profit for the year ended December 31. provisions of and directives issued under the Companies Ordinance.302 (68. Management believes that the changes in assumptions will not have significant effect on the financial statements.935 5.284 24.437) 1.3] Deferred tax on actuarial gain recognised Net profit for the year ended December 31.Statement of Changes in Equity for the year ended December 31.478) 1. Management believes that the changes in assumptions will not have significant effect on the financial statements. where the Company's view differs from the view taken by the income tax department at the assessment stage and where the Company considers that the matters in appeals will be decided in favour of the Company.284 (42.478) (150. 1984.378 13. such differences will impact the income tax provision in the period in which such determination is made. 2007 as restated Employee benefit cost under IFRS 2 “Share-based Payment”. Management believes that the changes in the outcome of estimates will not have significant effect on the financial statements.448 96.3 below.[note 3] Final dividend for the year ended December 31. 2.538 310. Revenue Reserves Long term liabilities forgone Other (note 3) General reserve Unappropriated profit Total --------------------------------------------------Rupees in '000-------------------------------------------------Balance as at January 01.448 5.842 6. In case requirements differ. The matters involving a higher degree of judgement or complexity. 2007 Transfer to general reserve Balance as at December 31.

2009 January 01.Customer Loyalty Programs January 01. Maintenance and normal repairs are charged to profit and loss account as and when incurred. The cost of computer software is amortised over the estimated useful life as disclosed in note 5 to the financial statements. Capital work-in-progress Capital work-in-progress is stated at cost less impairment in value. 2009 January 01. In respect of additions depreciation is charged from the month in which asset is put to use and on disposal up to the month the asset is in use.7 Long term loans and deposits Long term loans and deposits are stated at cost. Depreciation on all other assets is charged to profit and loss account applying the straight-line method whereby the cost of an asset less residual value. where necessary. 2.Notes to the Financial Statements for the year ended December 31. It consists of expenditure incurred and advances made in respect of tangible fixed assets in the course of their construction and installation. Provision is made for slow moving and expired stock where necessary.3 Standards. construction or production of a qualifying asset (one that takes a substantial period of time to get ready for use) as part of the cost of that asset. The effect of any adjustment to residual values. plant and equipment Operating fixed assets These are stated at cost less accumulated depreciation. . and adjusted if appropriate. 2008 July 01.Consolidated and Separate Financial Statements (Revised) IFRS 3 . useful lives and methods are reviewed. Cost in relation to work-in-process and finished goods represent direct cost of materials. The effect of any adjustment to useful lives is recognised prospectively as a change of accounting estimate. Additional depreciation at the rate of fifty percent of the normal rate is charged on such machinery which is operated on double shift during the year. Cost represents the cost incurred to acquire the software licences and bring them to use. Cost is determined on moving average basis except for the stores and spares in transit which are stated at invoice price plus other charges incurred thereon up to the balance sheet date.4 Basis of measurement These financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies herein below. direct wages and appropriate manufacturing overheads.Operating Segments IFRIC 12 . Cost associated with maintaining computer software’s are charged to profit and loss account. Cost signifies standard costs adjusted by variances.Borrowings Costs. Cost of leasehold land is amortised over the period of the lease. plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.Presentation of Financial Statements (Revised) IAS 23 . 2. including expectations of future event that are believed to be reasonable under the circumstances. The option of immediately expensing those borrowing costs will be withdrawn. The assets’ residual values. The carrying values of property. An item of property.1 to the financial statements. The rates used are stated in note 4. useful lives and methods is recognised prospectively as a change of accounting estimate. Subsequent costs are not recognised as assets unless it is probable that future economic benefits associated with these costs will flow to the Company and the cost can be measured reliably. comprising invoice values plus other charges incurred thereon accumulated to the balance sheet date. 2009 July 01. Value of items are reviewed at each balance sheet date to record provision for any slow moving items. which are stated at cost. 2009 January 01. 2.6 Intangible asset – computer software Computer software licences acquired by the Company are stated at cost less amortisation. 2009 January 01.Business Combinations IFRS 8 . Net realisable value signifies the estimated selling price in the ordinary course of business less estimated costs necessarily to be incurred to make the sale.5 (i) Property. 2. Standard or Interpretation Effective date (accounting periods beginning on or after) (ii) IAS 1 . Any gain or loss arising on derecognition of the asset is included in the profit and loss account in the year the asset is derecognised.9 Stock-in-trade These are valued at lower of cost and net realisable value. except for freehold land and capital work-in-progress. if not insignificant. The useful lives of intangible assets are reviewed at each reporting date. at each financial year end. which requires an entity to capitalize borrowing costs directly attributable to the acquisition.Borrowings Costs (Revised) IAS 27 . The Company expects that the adoption of the above standards and interpretations will have no material impact on the Company's financial statements in the period of initial application except for IAS 23 .Service Concession Arrangements IFRIC 13 . plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. is written off over its estimated useful life. 2008 54 55 Estimates and judgments are continually evaluated and are based on historical experience and other factors. interpretations and amendments to published approved accounting standards that are not yet effective The following revised standards and interpretations with respect to approved accounting standards as applicable in Pakistan would be effective from the dates mentioned below against the respective standard or interpretations. Goods in transit are valued at cost. 2. There have been no critical judgements made by the Company's management in applying the accounting policies that would have the most significant effect on the amounts recognised in the financial statements. 2008 2. The Company accounts for impairment by reducing its carrying value to the recoverable amount.8 Stores and spares These are valued at cost less provision for slow moving and obsolete stores and spares. 2.

years of service and salary. 2. 2.12 Cash and cash equivalents Cash and cash equivalents are carried in the balance sheet at cost. The liabilities recognised in respect of gratuity and pension schemes are the present values of the defined benefit obligations under each scheme at the balance sheet date less the fair value of respective plan assets. Deferred tax is charged or credited in the profit and loss account except for deferred tax arising on recognition of actuarial loss or gain which is charged or directly credited to equity. 2008. Return on deposits is recognised on accrual basis.13 Trade and other payables Liabilities for trade and other amounts payable are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received. which is the Company's functional and presentation currency. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange which approximate those prevailing on the balance sheet date. 2008 56 57 2. both by the Company and the employees. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Gains and losses on translation are taken to income currently. if any. balances with banks on current and deposit account and outstanding balance of running finance facilities availed by the Company. Bad debts are written-off when identified. An estimate for doubtful debts is made when collection is no longer probable. being the fair value. 2. 2. Deferred Deferred tax is recognised using the liability method. Foreign currency transactions during the year are recorded at the exchange rates approximating those ruling on the date of the transaction. The amounts of retirement benefits are usually dependent on one or more factors such as age. Deferred income tax assets are recognised for all deductible temporary differences and carry-forward of unused tax losses. The most recent valuation in this regard was carried out as at December 31. The gratuity and pension obligations are calculated annually by independent actuaries using the Projected Unit Credit Method.17 Taxation Current Provision for current taxation is based on taxable income at the current rates of taxation after taking into account tax credits and tax rebates available. and tax under the final tax regime. to the fund at the rate of 10 percent of basic salary.10 Trade debts and other receivables These are recognised and carried at original invoice amount. Previously such assets were included as a part of property. 2. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and/or carry-forward of unused tax losses can be utilised. The carrying amount of all deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax assets to be utilised. Costs to sell signify the incremental costs directly attributable to the disposal of an asset. on all major temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes. excluding finance costs and income tax expense. 2.14 Provisions Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. For the purpose of cash flow statement. plant and equipment under non-current assets. The schemes define the amounts of benefit that an employee will receive on or after retirement subject to a minimum qualifying period of service under the schemes. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised directly in equity in the statement of changes in equity in the period in which they arise. The Company measures its non-current assets classified as held for sale at the lower of carrying amount and fair value less costs to sell. 2.Notes to the Financial Statements for the year ended December 31.15 Employees benefits Defined benefit plans The Company operates an approved funded gratuity scheme and an approved funded non-contributory pension scheme in respect of all permanent employees and senior management staff respectively excluding expatriates.11 Non-current assets classified as held for sale Non-current assets are classified as held for sale if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use. cash and cash equivalents comprise cash in hand. less an allowance for any uncollectible amounts. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.19 Revenue recognition Sales and toll manufacturing income are recorded on despatch of goods. The present values of the obligations are determined by discounting the estimated future cash outflows using interest rates of high quality government securities that have terms to maturity approximating to the terms of the related obligations. Equal monthly contributions are made. 2. Defined contribution plan The Company also operates a recognised provident fund scheme for all permanent employees excluding expatriates. The Company provides for compensated absences of its employees on unavailed leave balances in the period in which the leave is earned on the basis of accumulated leaves and the last drawn pay. whether or not billed to the Company. if any.18 Foreign currency translation These financial statements are presented in Pak Rupee. and Licence fee is recognised on accrual basis. 2. These assets are available for sale in their present condition subject only to terms that are usual and customary for sales of such assets and their sale is highly probable.16 Compensated absences .

032 1. cancelled.338 1.960 789.133 806.1 8.10. 3. 2. 2008 2007 -------------Rupees in '000------------- 4.681 107. Transfers to non-current assets classified as held Charge for Disposals / for Sale As at As at the year Writeoff* (note 15) December 31. amounts in respect of profit after tax for the year and unappropriated profit would have been higher by Rs.789 782* 6.350 350 7.25 Share based compensation The economic cost of awarding shares to employees is reflected by recording a charge in the profit and loss account.391 1.388 339.287 1. a corresponding reserve is created to reflect the equity component.953 466.871 544. when the obligation specified in the contract is discharged.882 93.133 806.712 790.327 1.17.574 18.233 12.800 1.374 176 45.21 Financial Instruments All the financial assets and financial liabilities are recognised at the time when the Company becomes a party to the contractual provisions of the instrument.121 4.200 439.257 646.542.339 37. PROPERTY. Had the Company not adopted the said policy. 2. Rate As at January 01.115 25. respectively. France. December 31.159 109.128 50.1.350 480 42.350 480 42. the Company has adopted the accounting policy with respect to the recognition of employee benefits cost.036 million respectively) and other reserves would have been lower by the amount of unappropriated profit.175 105.912 *Assets written off primarily represent items that are obsolete or redundant and have no economic value to the Company.Group and Treasury Share Transactions”. or expires. Additions Writeoff* (note 15) Accumulated depreciation / amortisation Note As at December 31.857 782* 8.979 659.23 Off-setting of financial instruments Year 2008 Note December 31.1 Operating fixed assets Written down value Cost Transfers to non-current assets classified as held As at Disposals / for sale January 01. 2. Such cost had not been previously recognised.051 18.7.238 756.872 8.778 6 1.335 29.25 above.626 26.415 5 1.589 2.“SHARE-BASED PAYMENT” AND IFRIC 11 .648 17.200 439.Rs. together with any changes in the fair value of the hedged liability that are attributable to the hedged risk. Freehold land Leasehold land Building on freehold land Building on leasehold land Plant and machinery Furniture and fixtures Motor vehicles Factory and office equipment 4. Where awarded shares relate to Group Companies.138 56.270 149 345 5. The Company enters into derivative transactions mainly to hedge foreign currency liabilities or firm commitments and these are designated as fair value hedge.327 128.088 1.284 million and Rs.2 4.067 83.617 5.477 176 2. Any gains or losses on derecognition of financial assets and financial liabilities are taken to profit and loss account currently.“IFRS 2 .247 9.882 93.127 191.144 7.036 4.497 56.“Share-based Payment” and IFRIC 11 .793 22. as referred to in note 2.1 4.574 18.367 140. PLANT AND EQUIPMENT Operating fixed assets Capital work-in-progress 4.436 36.218 439* 130 34.390 1.045 577 577 135 35.272 2.792 25. December 31. .867 Borrowing Cost Borrowing cost is recognised as an expense in the period in which it is incurred.140 89.249 646. All financial liabilities are derecognised at the time when they are extinguished that is.815 14.541 18.390 1.194 million and Rs.873 349.461 20.23 5 5 10 10 20 7-33 130 34.931 104.320 million.506 9. equivalent to the fair value of shares on the grant date over the vesting period.22 Derivative financial instruments and hedging activities Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value at each reporting date.144 1..350 480 42.307 644.032 406 4.041 51.1.406 12.519 331.912 143. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the profit and loss account.304 78.830 493. 2007: Rs.259 98. 2.453.624 717.871 544.193 13.681 107.“IFRS-2 GROUP AND TREASURY SHARE TRANSACTIONS” Upon adoption of IFRS 2 .833 597.905 12.749 130.787 4.415 8.327 32.128 50.168 7. Financial assets are derecognised at the time when the Company loses control of the contractual rights that comprise the financial assets.910 9.037 20.238 756.367 212.A.858 550.195. -------------------------.1 8.1.792 25. in '000 -------------------------- % -----------------------------.2 644. stated above. 2.858 Year 2007 Freehold land Leasehold land Building on freehold land Building on leasehold land Plant and machinery Furniture and fixtures Motor vehicles Factory and office equipment 4.24 Dividends and appropriation to general reserve Dividends and appropriation to general reserve are recognised in the financial statements in the period in which these are approved.587 5.609 15.493 897.128 1.23 5 5 10 10 20 7-33 124 33.144 7.807 21. in '000 ------------------------------ A financial asset and a financial liability is offset and the net amount is reported in the balance sheet if the Company has a legally enforceable right to set-off the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The above adoption has been applied retrospectively and accordingly comparative amounts in respect of profit for the year and equity have been restated for all the prior periods presented through adjustment to the opening balance of unappropriated profit in accordance with the transitional provisions of IFRS 2.565 127.628 196. CHANGE IN ACCOUNTING POLICY ON ADOPTION OF IFRS 2 .201 1.221 14.749 130. 2008 58 59 2.453.Notes to the Financial Statements for the year ended December 31.728 95. arising from the award of shares of sanofi-aventis S. (December 31.624 4.200 242.554 31.Rs.917 29.780 439* 6.448 149 480 40.294 1.

all EDP equipment. the fee is to be enhanced every year on the anniversary of the agreements on the basis of the rate of inflation in Pakistan calculated on a twelve months moving average in the official Consumer Price Index published prior to the relevant anniversary of the agreement.490 9.995 Various Various 795 583 212 457 Tender Bid 504 balance c/f 9. 2/590. Karachi.2 During the current year. 1997. Gulshan-e-Iqbal. Karachi Afzal Hameed (Employee) House No.593 4 4 6.. North Karachi Munzar Ishaq (Ex-Executive) Shaharyar House.3 The details of operating fixed assets disposed off.Rs.E. Block-7.000 each 94 6 88 635 130 39 91 335 Company Policy Company Policy Tender Bid Yasir Pirmuhammad (Executive) 306 Suleman Arcade. Block 4. Near KMC Primary School.000 each. Block-H. As a result. F. B. Thereafter. Jamaluddin Afghani Road. D. Shah Faisal Town. Karachi-29 130 39 91 355 Company Policy Masaud Ahmad (Executive) D-179/1. are as follows: 184 976 Description Cost Accumulated Net book Sale depreciation value proceeds -------------------. in '000 ------------------9. Kehkashan.144 1. 2008 60 61 4. the Company reassessed the useful lives of its Electronic Data Processing (EDP) equipment (included in factory and office equipment) to reflect more accurately the relationship between the effective useful lives of the assets and resulting depreciation charge. Shah Faisal Colony.322 18. The said change in estimate has resulted in depreciation charge for the current year to be lower by Rs.831 195 195 3. Clifton. North Nazimabad. Gulshan-e-Iqbal. North Nazimabad. Karachi Asim Jamal (Ex-Executive) 111-A. Gulshan-e-Iqbal.H. T-533/B. Karachi -doZahid Qadri House # 15 A -4.No.831 294 3. Karachi Muhammad Irfan (Employee) A-531. D-32. an associated undertaking. Karachi Moin Mohajir (Executive) 108/11/11 Khayaban-e-Hilal.1 The Company has granted to Bayer Crop Science (Private) Limited. Azad Jamhoria Colony. D-39.S.1.A. Karachi 742 491 686 417 56 74 465 256 -doTender Bid 76 97 370 1 2 134 75 95 368 377 421 Tender Bid -doTender Bid 3 828 181 148 396 478 Company Policy Company Policy Description Cost Accumulated Net book Sale depreciation value proceeds -----------------. Block-3.50.H. respectively. R-536. Karachi Items having book value of less than Rs.82 million. The fee for each licence for the first three years was Rs.Rs. B-252. instead of depreciating the same over 3 years. Karachi Kamran Yamin (Executive) A-57. having net book value in excess of Rs.60 million and Rs. Karachi -do-do-doInternational General Insurance Ltd. with the exception of computer servers.94-A. Karachi -do-do-doWasim Mirza A-32. Sindhi Muslim Society.C.593 210 6. Block 13-D-2. commencing April 12.663 million and profit before taxation for the year to be higher by the same sum. Housing Society.2. 4. Block-I. Karachi Syed Viqar Haider (Ex-Executive) A-48. 4. Karachi Saddar ul Islam (Employee) House No. 2 & 3. Area. Karachi Muhammad Yamin House # 875/3. Karachi -doArif Ali (Employee) House No. Block-2. Central Govt.238 191 191 9. Sector 11-B. Lala Rukh. Main Khayaban-e-Nishat.0. 1997 and October 1.2.770 423 350 350 450 733 1. in '000 --------------------857 888 504 245 504 393 390 50 886 1. Gulshan-e-Iqbal. Karachi-2 Siddique Balauch (Ex-Employee) House No.287 1.1. Phase VI. 16th Street. Karachi Mamoona Firdous Naqvi (Executive) House No.320 1.. B-20.405 447 428 966 766 307 1.143 8. WAH Cantt.320 - 402 504 126 378 344 3. Chanesar Goth. Clifton.Notes to the Financial Statements for the year ended December 31.832 9.561 864 886 142 237 370 37 168 85 136 384 156 417 458 715 651 134 208 336 308 254 50 502 1.1. two exclusive licences for the use of the land for a period of 20 years. respectively.900 23.725 440 442 Tender Bid Tender Bid Muhammad Usman (Employee) H. Kehkashan. City Homes.238 276 9. are depreciated over a period of 4 years.continued Vehicles 1. Block-10/A.375 468 690 Mode of disposal Tender Bid -do-do-doInsurance Claim -do-do-doTender Bid Company Policy Tender Bid Company Policy Tender Bid Particulars of buyers 504 Malik Muhammad Khaliq A-19. Bufferzone.50. Darwashia Mosque. DHA Phase VI Karachi Afzal Yar Khan (Employee) 25-J.725 Company Policy . Block-2. P. Mode of disposal Particulars of buyers balance b/f Vehicles .

motor cycles and personal expenses.319 58.815 176 2.077. respectively. in '000 ------------------------ 545. December 31.50.367 (5.556 (30. 2008 2007 -------------Rupees in '000------------- Plant & Machinery Items having book value of less than Rs.642 25.617 4.535 574. Phase-V Defence Housing Authority.965 Rate % Charge As at for As at As at January 01. December 31.906 (20) 14.714) 467.886 27.947 (1.072 550.384 Finished goods In hand In transit Provision against slow moving finished goods 9. carry mark-up / interest at the rate of 9.552 1.Rs. 2008 2007 -------------Rupees in '000------------3.465 14.265) 8.521 1.236 729 Year 2007 Computer software 1.000 each 1.846 42.272 533.Rs.345 60.325 3.880 34. Building on leasehold land Plant and machinery Others Advances to contractors and suppliers 155.045 31 102 4. 2008 2007 -------------Rupees in '000------------LONG-TERM DEPOSITS Long-term deposits Provision against deposits considered doubtful STORES AND SPARES Stores Provision against obsolete stores Grand Total 29.246 41.101) 27.917 1.021 .1 Various 6. December 31.965 1.862 33 581 655 1.50. Loans for the purchase of motor cars and motor cycles are interest free whereas personal loans. representing capital goods funds and housing scheme. --------------.614 514.060 329.582 15.026 40. 5th Street.750) 502.104.693 25.875 48.756 3.56/1.439 (114) 3.391 31.196 (1.3 519.362 23. December 31.944 Items having book value of less than Rs.unsecured Employees Current maturity shown under current assets December 31.284 14.006) 6.425 4.566 76.144 143.513 16. Karachi 6. Karachi 7. in '000 --------------Year 2008 Computer software 1. 2008 62 63 Description Accumulated Net book Sale depreciation value proceeds -------------------.351 507.944 482.965 33 40 541 581 1.1 11 11.50% (2007: 9. the year December 31.361 14.Rs.827 56 93 7.1 Work-in-process As at As at January 01.432 28.2 Capital work-in-progress 8. in '000 --------------------Cost Mode of disposal Particulars of buyers Note 6.912 14. INTANGIBLE ASSET Cost Accumulated amortisation Written down value STOCK-IN-TRADE Raw & packing material and auxiliaries In hand In transit 9. LONG-TERM LOANS Considered good .872 4. These are repayable within five years in equal monthly installments.060 Negotiations Gain due to fire: Building Plant & Machinery Loans to employees have been given for the purchase of motor cars. Note December 31. -----------------------. in accordance with the Company's policy.I Chundrigar Road.524 30.00% and 16. December 31.00%) per annum.209 (5.539 (114) 3.279 1.047 Insurance Claim Adamjee Insurance Company Limited I.449 (17) 14.806 1.712 9.993 (40.Notes to the Financial Statements for the year ended December 31.289 2.000 each Factory & Office equipment 621 365 621 294 71 97 37 Negotiations Company Policy Various Mohammad Amjad (Executive) House No.441 2.836 492.141 6.568 67.170) 26.430 9.278 Spares Provision against obsolete spares 5. Off Khayaban-e-Momin.450 515 1.423 7. 14. Addition December 31.831 571. except for capital goods funds which is repayable over a period of three years.2 & 9.

008) 137.817 (2007: Rs.171. December 31.775 10.931 (2.unsecured Loans Current maturity of long-term loans to employees Advances Executives Employees Contractors and suppliers 13. 2008 2007 -------------Rupees in '000------------- 9.895 2.335 2.757 13 2.3 13.721 (2007: Rs.789 Considered good Related parties Others Considered doubtful Others 10.1 Included herein are the following reimbursements due from the related parties: AGP (Private) Limited Bayer CropScience (Private) Limited Aventis Pharma Deutschland GmbH Sanofi Winthrop Industries Fisons UK 1.019) million.563) 17.unsecured December 31.197.585 11.092 19.284) 30.17.3 10.1 Included herein are the following related parties: Pakistan Telecommunication Company Limited Telephone Industries of Pakistan Packages Limited sanofi-aventis (Thailand) limited 1.449 6.976 (2007: Rs.136 Provision against debts considered doubtful 10.411) million.920 13.174.2 9. SHORT TERM LOANS AND ADVANCES Considered good .090 20.006 5.959 (15. at the end of the current year.252 15.205 (2007: Rs.297 10.969 5. aggregating to Rs.141 6 5. This includes cost of physician samples.1 & 13.2.2 13.054 9.647 9. 2008 2007 -------------Rupees in '000------------4.581 9.008 152.623) 401 135.082 (2007: Rs. 12.269) million.969 77.144 (2.229 (7. 11.1.6 & 13.147.278 24.1 OTHER RECEIVABLES Due from related parties Employees' pension fund Employees' gratuity fund Insurance claim Amounts due from ex-employees Provision against loans due from ex-employees 13.231 151.951 15.920 15.749) million.229) 206 100.008 166.7 33.1 This includes raw and packing material held with third parties.696 (2.623 (1.141 75.950 4.672) million.208 26.720 792 87 23 902 Sales tax refundable Provision against sales tax refundable considered doubtful Miscellaneous 10. This includes finished goods costing Rs.Notes to the Financial Statements for the year ended December 31. at the end of the current year.018 137.999 (2007: Rs.634 332 15. TRADE DEBTS .522 (2.119 56 9.329 33.2 The maximum amount due from related parties at the end of any month during the year was Rs. 2008 64 65 9.928 (15.4. TRADE DEPOSITS AND SHORT-TERM PREPAYMENTS Trade deposits Tender deposits Margin against letters of credit Provision against tender deposits considered doubtful Short-term prepayments Note December 31.1.1 The maximum aggregate amount due from executives at the end of any month during the year was Rs. December 31.634 40.951 902 137.522) 1.15.571 13.1 135 5.476 19.182 24.543 13.720 147.088 552 32.200) million.696) 7. at the end of the current year.411 6. Note 22.601 (2007: Rs.3 13.2 The maximum amount due from related parties at the end of any month during the year was Rs.445 2. . 11.13.088) million valued at net realisable of Rs.6.265 11.188 2.547 23. aggregating to Rs.008) 151.

841 6.131 77.5% 10.062 million. 13.6 Included herein is a sum of Rs.953) 985 255. Expected return on plan assets Employer contributions Benefits paid Actuarial gain Fair value as at December 31.772 Funded pension plan Present value of defined benefit obligations Fair value of plan assets Surplus Experience adjustments Actuarial gain on obligations Actuarial gain on plan assets Funded gratuity plan Present value of defined benefit obligations Fair value of plan assets (Deficit) / surplus (177.352 49.528 (9.452) 236.466 77.547 6.006 89 11 100 Comparison for five years: 2008 2007 2006 2005 2004 --------------------------------. 20.813 4.279 126.107 721 3. in '000 ---------Plan assets comprise of: Funded pension plan Debt Others (includes cash and bank balances) 2008 % Rs.410 137. respectively.624 (5.919 151. .449) (2.007 (137.641 10.742 10.887 2.975) 115.901 75.742) 137. Credit / (charge) for the year Contribution during the year Actuarial gain / (loss) recognised in equity Prepayment / (liability) as at December 31.1.158) (1.039) 6.611 151.220 (13.955 (3.204 171.0% 12.449 (171.026 12.526 161.5% 8.895 75.0% 12.414 54.645 236.568 10.327) 7.866) 174.0% 58 yrs 13.786) 1.006 Experience adjustments Actuarial loss/(gain) on obligation Actuarial gain/(loss) on plan assets 7. Service cost Interest cost Benefits paid Actuarial (gain) / loss Obligation as at December.393 (5. (Credit) / Expense recognised Service cost Interest cost Expected return on plan assets Annual amortisation of unrecognised Past service cost Gratuity Fund 2008 2007 ---------.395 16.667) (2.865 Actual return on plan assets Movement in the defined benefit obligation Obligation as at January 1.291 166 11.671 million due from an insurance company in respect of electric panels and cables damaged during the current year on account of fire at the Karachi manufacturing site.101 166 (6.533 (6.413 166.449) 8. The excess of amount claimed over written down value of electronic panels and cables has been recorded under other operating income (note 25).901 24.869) (144.111 10.616 62.288 (11.463 14. 13.196) 107.410 (4.0% 13.953) (146) 177.999 8.799) 2.731 10. in ‘000 2007 % 89.5% 10.919) 255.857) 980 144.449 6.107 166.176 million and negative Rs 2.474 10.898 14. at the beginning of the period.869) 11.053 255.449 (151.518 4.279) 166. Present value of defined benefit obligations Fair value of plan assets Net assets / (liability) in balance sheet Movement in asset / (liability) Prepayment as at January 1.1.527 151.452 144.487 236.101) (1.901 151.020) (101.220 (5.799 16.245 2.857) 3.026 12.5 Based on actuarial advice.006 15.667 20.898 14.901 75.955 16.547 (161.611 (24.955 16. which is a related party. for returns over the entire life of the related obligation.731 36.547 (161.204 5.240) (6. 31 Movement in fair value of plan assets Fair value as at January 1.5% 58 yrs 10.895 (9.803 (145. 2008 were as follows: Rs.467 236.466 77.900 166.5% 10.097) (4.463 14. in ‘000 Pension Fund 2008 2007 ---------.189 75. 2008 66 67 13.901 77 23 100 (177.722) 161.327) 5.919) 255.308) million due from an insurance company.533) (967) 25.347 (20.111) 151.291) 28.410 (4.513 864 8.0% 13.466 35 65 100 182.345) 194.111 (171.Rs.889 3.347 (6.006 6.467 6.707 13.452 6.450 (5.547 62.0% 6.245) 798 9.Notes to the Financial Statements for the year ended December 31.5% 58 yrs 10.895 Funded gratuity plan Debt Others (includes cash and bank balances) 101.624) 9.111) 151. Key actuarial assumptions used are as follows: Discount factor used Expected rate of returns per annum on plan assets Expected rate of increase in future salaries per annum Indexation of pension Retirement age 146 985 2.416 (2007: Rs.7 Included herein is a sum of Rs.510 64.616 20.393 (15. 13.466 214.Rupees in '000 --------------------------------- 6.611 (6.869) (144.279) 166.452) 236.0% 58 yrs 13.899 (118.697 (9.006 6.410 61 39 100 134.813) 214.895 (126.803 1.3 The status of the funds and principal assumptions used in the actuarial valuation as of December 31.449 967 1. the amount of expected contribution to gratuity and pension funds in 2009 will be Rs 12.Rs.4 The expected return on plan assets is based on the market expectations and depends upon the asset portfolio of the plan.641 13.5% 10.450 2. in '000 ---------Balance sheet reconciliation as at December 31.

using the Black & Scholes valuation model.300 13. a total of 5. Rawalpindi. CASH AT BANKS In current accounts 14. taking into account the expected life of the options. sanofi-aventis S. In accordance with IFRS 2 (Share-Based Payment).400 35.320 48.A. France. As a result thereof.0.A.. France (the “Parent Company”) granted a number of equity-settled share-based payment plans (stock option plans) to some of its employees.) from Hoechst GmbH. France. France. resolved to dispose freehold land and building located at 87-A. which are still outstanding. However. including employees of sanofi-aventis Pakistan limited (the “Subsidiary Company”). France sanofi-aventis S. services received from employees as consideration for stock options are recognised as an expense in the profit and loss account.595 (2007: Rs.33 10.705 1.371 971. RESERVES Capital reserves Long term liabilities forgone Difference of share capital under scheme of arrangement for amalgamation Other Note December 31. representing refundable deposits received from distributors.0. 2009.1 The Company in its fortieth Annual General Meeting.167 976. .700 The exercise of each option will result in the issuance of one share of sanofi-aventis S. 17. The agreement in this regard has been executed. The fair value of stock option plans is measured at the date of grant.255 935.102 December 31.676 17. 2008 2007 -------------Rupees in '000------------17. the Company had following equity settled share-based compensation plans: (a) Stock Option Plans: sanofi-aventis S. 2008 2007 -------------Rupees in '000------------- Origin Date of grant Vesting period (years) Options granted (number) Start date of exercise period Expiration date Exercise price () During the current year..020.000 24. France sanofi-aventis S.935 18. Options outstanding at December 31.38 66.Notes to the Financial Statements for the year ended December 31.A.900 40.1 15. 2008 68 69 Note 14.164 5.469 Ordinary shares of Rs. with the approval of shareholders of the Company. December 31.935 18.Germany (36.500 13.91 62. December 31.538 141.50. held on March 19. 2008 2007 -------------Rupees in '000------------(Restated) 5. were transferred to SECIPE (a wholly owned subsidiary of sanofi-aventis S. France to the employees of sanofi-aventis Pakistan limited and accounted for under IFRS-2. has remained the ultimate parent company.A.000 17.A. Satellite Town.. including sanofi-aventis Pakistan limited..800 13. The benefit cost recognised therefore relates to rights that vested during the reporting period for all plans granted by sanofiaventis S.88% of issued share capital of the Company.1 Included herein is a sum of Rs.201 670 8.. 2008.1 15. These plans entitled the eligible employees to acquire shares of the parent company by exercising options granted to them.. with necessary related formalities expected to be completed by February 16. The expense corresponds to the fair value of the stock option plans of the shares of the parent company and is charged against income on a straight-line basis over the four-year vesting period of the plan. Details of the terms of exercise of stock subscription options granted under the various plans are presented below in sanofiaventis S.099. France. The table shows stock subscription option plans granted by sanofi-aventis S. share equivalents.1 Share-based compensation plans As at December 31. with the corresponding entry recorded as equity. aggregating to Rs. December 31.538 36.10 each.1 8.80%). transporters and suppliers. These options have been granted to certain corporate officers and employees of the Group companies.971 835.A.A. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE Freehold land Building on freehold land .345) million.500 11.909 1. 15.690. sanofi-aventis S.017. constituting 52. France 31/05/2005 14/12/2006 13/12/2007 4 4 4 13.186 2. These are measured at the lower of carrying amount and fair value less cost to sell. 2008 2007 ------------Number of Shares-----------December 31.08%) and Plasma investments UK Limited (16.700 01/06/2009 15/12/2010 14/12/2011 31/05/2015 14/12/2016 13/12/2017 written down value 15. 2008. SHARE CAPITAL December 31. a group restructuring exercise was carried by the Parent Company.A. December 31...871 Revenue reserves General reserve Unappropriated profit 14. subject to the fulfillment of the vesting conditions.036 40.1 2. 2008 (number) 16.

396) (11.A. 2007.884 shares were subscribed by the employees of sanofi-aventis Pakistan limited. There were no share issues reserved for employees during the year 2008.894 892.000) 35.stores & spares . 2007 of which exercisable Options granted Options exercised Options cancelled Options forfeited Options outstanding at December 31.512 542.18.284 million during the current year and Rs.326 66. December 31.936 . the shares acquired under the above scheme have a locked-up period of 5 years i. “Action 2007”.254 345 4.700 (5.148 27.3 The fair value of the options granted in 2007 at grant date is 11.869 1.21 18.222 102.1 Included herein is a sum of Rs. 2008 70 71 Summary of stock option plans: A summary of stock options outstanding at each balance sheet date.900 40. The fair value of the plan awarded in 2007 to the employees of sanofi-aventis Pakistan limited amounted to Rs. The following assumptions were used in determining the fair value of the plan awarded in 2007: • • • • Dividend yield: 3.203 (20.548 million at the grant date.195 million during the year ended December 31.757 30. discounted price at 48. 2007 through November 30.951) 70.301 277.10 million (2007: Nil).trade debts .535 17.7.3 13.e.333 million to be recognised over a weighted average period of 3 years.923) (327) (3.3. employees could acquire shares ranking for dividend from January 1. DEFERRED TAXATION Credit balances arising from: Accelerated tax depreciation allowance Recognition of actuarial gain on retirement benefit plans Debit balances resulting from: Short-term provisions against: .3 Included herein is a sum of Rs. TRADE AND OTHER PAYABLES Trade Creditors Related parties Other trade creditors Other payables Accrued liabilities Royalty and technical fee Advances from customers Workers' Profit Participation Fund Workers' Welfare Fund Central Research Fund Compensated absences Security deposits Contractors' retention money Employees gratuity fund Unclaimed dividend Unrealised loss on re-measurement of forward exchange contract 19. 2007.928 6.030) 4.301) (8. sanofi-aventis S.Notes to the Financial Statements for the year ended December 31.301 5.700 Weighted average exercise price per share ( ) 68.081 (2007: Rs. is presented below: Number of options Options outstanding at January 1. The discount is measured at the subscription date and recognised as an expense. as discussed in note 15.923) (3.66 62.2 Workers' Profit Participation Fund Balance at the beginning of the year Allocation for the year Interest on funds utilised in Company's business Amount paid to the Trustees of the Fund 19.299 10.684 191. France.645 (7.. and the corresponding entry taken to equity.55 per share.551 94 11. Further. An expense of Rs.882 594.936 4.08% Residual life: 6 years Volatility of sanofi-aventis S.797 29.087 19. 19.595 14.446 688. 2008 of which exercisable Measurement of stock option plans Stock options plans were not granted during the year 2008.stock in trade .33 66..771 4.811) (341) (5.708 (4. 20.secured 872.272 931 27. including employees of the subsidiary companies an employee share ownership plan.A.2 491.130 Note December 31. 2007 of which exercisable Options granted Options exercised Options cancelled Options forfeited Options outstanding at December 31.1.936 2.1 19. 2007.185 24 26 6.36% Risk-free interest rate: 4. computed on a historical basis: 1.267) 6.976 298. France approved the plan (October 30. amounted to Rs.104 226.999 million was recognised in respect of this share issue in the profit & loss account for the year ended December 31.615 19. Shares allotted to employees under these plans fall within the scope of IFRS 2.8. 19.53 66.21% 26.188 4. are nontradable for a period of 5 years.848 72.701 3.147 (4. Under the plan. The expense recognised for stock option plans.92 per option.998 337.692) (4.615 11.040) 73. France offered its employees.936 26. and a total of 1.273 18.836 410.. with no reduction for any lock-up period.508) million due to related parties on account of expenses incurred by them on behalf of the Company.800 13.Others Liabilities outstanding for more than three years 19. At the end of 2007. 2007 at a 20% discount to the average quoted market price for the 20 trading days preceding the date on which the Board of Directors of sanofi-aventis S. 2008 2007 -------------Rupees in '000------------66. 2007) i. (b) Employee share ownership plans: The sanofi-aventis Group may offer its employees the opportunity to subscribe to reserved share issues at a discount to the reference market price.726 853 24. and of changes during the relevant periods.e. the total cost related to non-vested share-based compensation arrangements amounted to Rs.615 1.276 3. SHORT-TERM BORROWING Running finances utilised under mark-up arrangements . As of December 31. 2008.209 1. shares.336 6.A.50 68. The subscription period was from November 19. representing non-refundable security deposit received from the buyer during the current year in respect of non-current assets held-for-sale.

963 21.846 3.784 (2007: Rs. the unutilised amount was Rs.647.804) million for opening the letters of credit.627 2.290.862 16. pending a final decision in these matters.700 2.684.360) 3.726 105.238.627 (21.863 2.058 87.862 (30.798 (283) (398) 21.938 1.403 3.737 819 122. (9.517 Staff costs (note 23.725) million as at the end of the year.292 480.809. hence.132 227. auxiliary and packing material consumed 2.545) million as at the end of the year.143 9. payable over the next five years. NET SALES Gross sales Local Export Toll manufacturing Returns Discounts 4.886 3.284 576.268 53.016 (2007: Rs.748) (330.Rupees in '000 ----------------------------------------Raw.031 Advertising.329 53.566. For assessment years 2000-01 to 2002-03.921 576.597 (283) (398) (540) (21) 13.090 5.135 757.045 12.366 507.301 756.014) 4.651 32. These facilities expire on various dates. as at the end of the current year (2007: Rs. The rates of mark-up range between Rs.910 22.13.2) Insurance 2.574 9.446 55 736 7.1.276 Repairs and maintenance 42.906 9.921 537.095 27.840 Fuel and power 108.727 324 3.391) million at the end of the current year.570 Commitments in respect of foreign exchange forward contracts with banks as at December 31.556 (2007: Rs.705 2.137 Royalty and technical fee (note 23.294 Recovery of service charges from outside parties (8. guarantees and bill discounting.834 6.70) million.570 3.621 8.361 2. are as follows: December 31.556) (507.346. The management of the Company is of the view that the final outcome of the above referred matters will be in favour of the Company and.0.584 304 9.995 8.875 3.26.139) million have been given to the Collector of Customs in respect of exemption of levies on import of specified pharmaceutical materials.063 660 11. the ITAT has maintained the CIT (Appeals) order of setting aside the additions except of transfer pricing and certain selling expenses which have been deleted by CIT (Appeals).e.993) 3. 21. 2008 2007 Years -------------Rupees in '000------------2008 9. latest by December 31.964) 17.508 15.556 37.709 4.895 28.776 (41.877 11.981 3.327.347 6.758 2. subject to the consumption of such raw materials within the specified period and to various other parties.847 3.314 Lease rentals 1.631 2.721 4.049 757.894 5.198 8.811. December 31.839.631 2.209 212.090 Rent.15.000 per day.783 53.967 Opening work in process Closing work in process Cost of goods manufactured Opening stock of finished goods Finished goods purchased Finished goods written off Cost of samples issued under distribution and marketing expenses (Reversal of) / provision against slow moving finished goods Closing stock of finished goods 23. the department has filed appeals against the decision of the ITAT before the High Court.197.836 225.767 756.011) (8.301 462 60.808 23.600 1. freight and transportation Communication 3.520 13.1. OPERATING COST Cost of Sales 2008 Distribution and marketing expenses Administrative expenses 73 Total 2007 2008 2007 2008 2007 2008 2007 (Restated) (Restated) (Restated) (Restated) ----------------------------------------.328 million.179.729 1.860 636 9.119 1.998 (8.342 84 869 2.801 165.327) 2. from assessment years 1998-99 through 2002-03. CONTINGENCIES AND COMMITMENTS 23.930 10. the TO had again made similar additions.502 600.2753 and Rs.482 42.078 123 203.011 1. royalty paid to an associated company and certain other expenses.840 232.292 521.671 2. aggregating to Rs.642 4.661 50.836 237.836 6.242 4.328 3.967 573 3.336.261 (34.876 1. For the assessment years 1998-99 to 2002-03.880 848 203.76 (2007: Rs. 251.1) 267.194 521.1 Staff costs Salaries.839.898 6.107 70.936 178.69.676.090 34.422 72 106.692 15.1.255 (2007: Rs.528 4. In finalising the tax assessment of former Rhone Poulenc Rorer Pakistan (Private) Limited for the assessment years 1994 .406 4.783) (307.808 11.963 21.329 1. However.217 million has been made in these financial statements.511 2010 708 708 2011 354 354 3.458 2.521 6.2 Commitments (a) (b) Commitments in respect of capital expenditure contracted for amounted to Rs.204 32. auxiliary and packing material written off 6.805 4.840 228.828 Handling.500 13.821 628 1.413 Traveling and conveyance 35.556 6.648 23.209.320) million.640 6.126 11.883 6.312.813 591 8.997 2009 2. The facilities are secured against first pari passu charges on stock-in-trade and book debts of the Company. 2008 amounted to Rs.489 2. 21.900 1.4115 and Rs.253 2.627 122. the ITAT has set-aside the sole issue of Transfer pricing which was deleted by CIT (Appeals). disallowances out of sales promotion.347 237.053 7.545 247.570 32.863 4.282 Publication and subscription 97 1.148 Security and maintenance 3. wages and other benefits .700 17.135 5.089 13.023 267.The said additions and disallowances have been set aside by the Income Tax Appellate Tribunal (ITAT).254 8. 2008.0.95 to 1997-98.709 28.011 23.60.835 2.011) (8.311 72 Depreciation / amortisation 77.198 24.898 13.061 7. no provision of approximately Rs.172 1.835 207. 2008 72 The facilities for running finances available from various banks under mark-up arrangements aggregated to Rs.124 2.094 13.805.743 7.926 1. Commitments for rentals under operating lease agreements in respect of vehicles amounted to Rs.813.520 (2007: Rs.Notes to the Financial Statements for the year ended December 31.287 (2007: Rs.266) (283.796 5.614) 19.896. samples and sales promotion Commission expenses Software license / maintenance fee Provision against loans to ex-employees written back Provision for doubtful trade deposits written back Provision for doubtful trade debts written back Bad debts written off / (recovered) Other expenses 5.719 1.899 3.599 (533.1 Training expenses Defined benefit plan Defined contribution plan Share based payments 255. Claims not acknowledged as debt amounted to Rs.327) 105.584 Stationery and supplies consumed 3.422 Provision for slow moving stores and spares .936) (c) 22.403 3.758) 421.993 522.228 9.900 28.620.050 23.137 10.513 50. The TO has started fresh assessment for all the years i.813 4.note 23.910 22. the Taxation Officer (TO) made additions mainly on the alleged contention that the Company had paid excessive amounts for importing certain raw materials.792 6.904 (174) (279) 70 11.0.900 216.267 (b) (c) (540) 70 (21) 706 17.2904) per Rs.862) 5.710 14 201 6.906 10.772 80.577) (285.171 5.646 8. The Company has filed miscellaneous application before the ITAT against the order of ITAT.542 (46.640 (41. rates and taxes 3. For the assessment years 1998-99 and 1999-2000.1.542 .989 35.79.172 1.126 Stores and spares consumed 11.113 2.692.328 247.192.570) million at the end of the year.973 117.455 Raw.244 5.773 1.199 3. Out of the facilities of Rs.855 370 8.334 232.48657 (2007: Rs.933 60.180 164 212.641 (174) (279) 95.719 1.490 386 1.1 Contingencies (a) Bank guarantees.862 10.0.198 10.189.

Chief Executive. Chairman.527 2.803 430 38.H.365 29.A.1 Included herein a sum of Rs.546 21.477 3.1 19.97 7.602) 46. has paid a sum of Rs. 2008 74 75 23.096 35.760 75.312 705 63.562 16.308 Weighted average number of Ordinary shares 5.064 533 172 288 130 1.293 million.1 Explanation of relationship between accounting profit and tax expense: Accounting profit before taxation Income tax at the applicable tax rate 35% (2007: 35%) Effect of tax under presumptive tax regime and other adjustments . is a member of the Fund) 25.395 (20. Karachi (Syed Babar Ali.S.748 846 44. December 31. P.519 87.302 560 190 254 60 1.781 25.1 28. which is based on: Net profit for the year 38.2 Names of donees in which a director or his spouse has an interest: • LUMS School of Science & Engineering D.. 2008 2007 -------------Rupees in '000------------- 83.1 December 31.589 - 600 25 30 December 31.short term running finances .772 32.987 Interest on Workers' Profit Participation Fund Bank charges 24.233 11.638 Earnings per share .212 40.273 4.Notes to the Financial Statements for the year ended December 31.299 931 2.Tariq Wajid.558 million to the workers at Wah Cantt and to the sales and marketing personnel. France (formerly Rhone Poulenc Rorer S.H.726 853 7.149 314 1.81 . France) and sanofi-aventis Pakistan limited [formerly Rhone Poulenc Rorer Pakistan (Private) Limited] was terminated effective April 1.902 61. 1997 between Aventis Pharma S.392 1. TAXATION Current Prior Deferred 47. Note 26.688 64.549 1. OTHER OPERATING EXPENSES Auditors' remuneration Workers' Profits Participation Fund Workers' Welfare Fund Fixed assets written-off Contribution for research and development fund Legal and consultancy charges Donations Exchange losses . 2008.589 27.936 3.2 27.528 12.A. and Mr.452 1.1. are the members of the Board of Trustees of Lahore University of Management Sciences) • World Wide Fund for Nature Fortune Centre.018) Miscellaneous 24.123 6.C. December 31. 375 5.6.599 35.096 115.long term financing .798 22.757 3.2 1. representing excess amount claimed over written down value from an insurance company in respect of fixed assets damaged due to a fire as explained in note 13. 2008 2007 -----------------Rupees ----------------(Restated) 3.Basic and Diluted BASIC EARNINGS PER SHARE There is no dilutive effect on the basic earnings per share of the Company.772 5. to achieve rationalisation and corporate restructuring.2 The licence and technical assistance agreement dated September 11.735 2.007 Effect of share-based payments Effect of prior years' tax charge 84.E. Note 2008 2007 -------------Rupees in '000------------24.018) 40.113 2.615 1.568 (20.760 9.short term loans December 31.495 343 1.594 83.580 1.1. respectively.123 24. December 31. OTHER OPERATING INCOME Income from financial assets Interest on loans to employees Income from related parties License fee Interest income Income from non-financial assets Gain on sales of operating fixed assets Others Scrap sales Liabilities no longer payable written back Export rebate claims Miscellaneous 4.1 Auditors' remuneration Audit fee Review of half yearly financial statements Special certification and reportings Out-of-pocket expenses 24.414 1.7.594 The Company as a result of voluntary separation scheme. 23. December 31. FINANCE COSTS Mark-up on: .644.374 57.2 94 3.832 530 177 13.284 46.809 204 5.781 799 6.514 14. 2008 2007 -------------Rupees in '000------------(Restated) 25.891 40.A. December 31.430 million and Rs. Lahore (Syed Babar Ali. Chairman.425 3.284 (2.269 Number of shares 9.429 52..644.064 4.

352 4.369 8.365 115.778 (2007: Rs.107 5. Amounts due from and to related parties.593 842 659 1.907 1.816 26.267) 31.474 4.815 4.366 (27.505 8. trade debts and other receivables.233) 7.297 1 3.057 68 41 15. TRANSACTIONS WITH RELATED PARTIES The related parties of the Company comprise associated undertakings. December 31.508 (1.275 1.608) million and Rs.913) (93.907 1.194 8.Rupees in '000 ----------------------------------------8.891 The transactions with the related parties are made at normal market prices.083) Managerial remuneration Profit sharing bonus Retirement benefits Perquisites and benefits: Rent and utilities Medical expenses Club subscription 2008 2007 2008 2007 2008 2007 2008 2007 ----------------------------------------.051 5.Gratuity Fund .817 8.421 26.637 6. employees' pension fund.2.391 50 48. in ‘000 --------------------------------------------------Gross sales Purchase of goods Purchase of services Recovery of service charges and other expenses Licence fee of land received Interest income earned Royalty and technical fee Contributions paid .600 6.506 (2007: Rs.1 Further.891 146.765 37 95.current accounts Running finances utilised under mark-up arrangements 14 20 2.959 39 61.680 799 28. 2008 76 77 Note December 31. directors and key management personnel of the Company.512) (870. Other material transactions with related parties are given below: December 31.051 5.718) (279.833 105.407 41 Number of person .440 7. December 31.720.321 9.326) 2.852 1.601 (231.132 ( Increase in current liabilities: Creditors. CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise of the following items: Cash at bank .Provident Fund 32.050 1.363 3.976 151 76 7.891 366.949 32.937 166 119.4. There have been no guarantees provided or received for any related party receivables or payables.596 8.910 1.377) Note December 31.102 (542.Notes to the Financial Statements for the year ended December 31. 2008 are included in trade and other payables.257 10.321 9.172 17.465 20.743 16.041 2.377) 209. including benefits. to the Chief Executive.922 1 7.113 105.817 8.185 52 72.323 131 95.743 32. 2008 2007 -------------Rupees in '000------------(Restated) 31.296 818 604 1.070 i) ii) iii) iv) v) vi) vii) viii) 29.364 166 2.772 6.914 1.377 2.809 1 3. 2008 2007 -------------Rupees in '000------------- 30.813 70 38 6. employees' provident fund.796) (39. Terms and conditions of transactions with related parties 106. The Company in the normal course of business carries out transactions with various related parties.813 38.987 (84.735) 9.003) 64.172 48 37.772 17.137 29.1 Working capital changes Decrease / (increase) in current assets: Stores and spares Stock-in-trade Trade debts Loans and advances Trade deposits and short-term prepayments Other receivables . accrued and other liabilities .180 1.031) 355 (13.107 5. the impact of benefits available to the Chief Executive and Others recognised by the Company in the expenses during the year on account of share-based payment plans aggregate Rs.284 8.890 (84. employees' gratuity fund.7. A DIRECTOR AND EXECUTIVES The aggregate amounts charged in the financial statements for the year in respect of remuneration.172 8.639 1 49.043 3.835 343 (1. 32.1 Associated Associated undertaking undertaking by virtue of Retirement by virtue of Retirement Common Benefits Common Benefits Group Group Directorship Plans Plans Companies Total Companies Directorship Total ---------------------------------------------.215 4. remuneration of Executives and the Chief Executive are disclosed in the relevant notes. The balances are unsecured and are settled in accordance with the terms and conditions of the transactions.954 24.Pension Fund .421.230 12.942) (2.453 1. Director and Executives of the Company are as follows: Chief Executive Director Executives Total 199.586) million respectively.429.186 (872. 2008 December 31.923) (14.364 799 28.308) 10.185) (540. 2007 29.275 1.2. 31.137 16.759.450 15.113 11. REMUNERATION OF THE CHIEF EXECUTIVE. There are no transactions with key management personnel other than under the terms of employment.542) 20.Rs.423 21 53 16.813 166 (excluding accruals for financial charges and unclaimed dividend) 1.450 15.173 (3.700 (375) 87.877 95.2 The related party status of outstanding balances as at December 31. CASH GENERATED FROM OPERATIONS Profit before taxation Adjustment for non-cash charges and other items: Depreciation Operating fixed assets written-off Gain on sales of operating fixed assets Expenses arising from equity settled share-based payment plans Retirement benefits Interest income Financial charges Working capital changes 84.

110 33.1.443) million and Rs.185 542.329 542. the Company aims at maintaining flexibility in funding by keeping committed credit lines available. 2009 by the Board of Directors of the Company.527 665.181 (2007: Rs.6 Fair values of financial assets and liabilities The carrying values of all financial assets and liabilities reflected in the financial statements approximate their fair values.1.185 542.726 872.00 & 16.257 872.1 Financial assets and liabilities Interest / mark-up bearing Effective Rate of interest % December 31. .207 33% Gearing ratio 34.326 1.367 33.114. the Company applies credit limits to its customers and ensures that sales of products and services are made to customers with appropriate credit history and credit worthiness.2 Capital risk management The Company's objective when managing capital is to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.2.083 1. In order to maintain or adjust the capital structure. 2008.528 (2007: Rs.Notes to the Financial Statements for the year ended December 31.5. however.951 11. 34.972 57. Net debt is calculated as total bank borrowings less cash and bank balances.503 million for approval of members at the Annual General Meeting to be held on March 25.531 4.4 Interest rate risk Rates on both short term and long term finances vary with the changes in KIBOR rate.612 1. Rs. This ratio is calculated as net debt divided by total capital.792 2. December 31.198 655. 37.726 1.Rs. as shown in the balance sheet plus net debt.3. Out of the total financial assets of Rs. 2008.280 30. MOVEMENT BETWEEN RESERVES AND PROPOSED DIVIDEND The Board of Directors in its meeting held on February 13.124 1. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 36. 2008 Financial assets Trade debts Loans to employees 9.608) million. Aggregate amount charged in the financial statements for fee to Directors other than working Directors was Rs.190.186 245.859 Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities.927) million.02-17. The Company is exposed to foreign exchange risk due to transactions denominated in foreign currencies. The gearing ratio as at December 31.502 137. The Company's credit risk is primarily attributable to its receivables. the Company may regulate the amount of dividends paid to shareholders. a Director and certain Executives recognised by the Company in the expenses during the year on account of share-based payment plans aggregated to Rs. The Company uses forward contracts to hedge its exposure to foreign currency risk.880 21.512 2. To manage exposure to credit risk.note 14 Net Debt Total equity 872. in ‘000 --------------------------------------------- Total borrowings Less: cash and bank balances .674 6. 13. 2007 34.512 872.250 (2007: Rs.257 4.147 10.05-10.000 (2007: Rs.512 872. respectively.185 2.512 151.792 2.102) 540.193. 34.155 151. Further. The Company monitor its capital on the basis of the gearing ratio. 2008 and 2007 were as follows: December 31.938 44% 542.207.865 32. December 31. the Chief Executive.462 542. 2009 proposed a final dividend of Rs. The above remuneration of Director does not include amounts paid or provided by the related parties. a Director and certain Executives are also provided with free use of the Company maintained cars.329 4.257.647 57.920 14.921) million.951 7.920 9.920 3.924 840.792 2.4.674 137.986.830 3.40 per share for the year ended December 31.181 872.1 Credit risk Credit risk represents the risk of a loss if the counter parties fail to perform as contracted.116. 10. the impact of benefits available to the Chief Executive.102 188.5 Liquidity risk Financial assets Trade debts Loans to employees Deposits Other receivables Cash at bank .086 1.865 32.867 4.972 57.185 655.60 - 35. the transactions of the Company are exposed to foreign exchange risks.3 Foreign exchange risk 15.086 872.147 10.803 17. These financial statements do not include the effect of the aforementioned proposed dividend.581 17.654.512 840. The Company has no significant concentrations of credit risk.76 - Foreign exchange is the risk of loss through changes in foreign currency exchange rates. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES 33. 34.006 17.50 Deposits Other receivables Cash at bank . 2008 78 34.867 2.865 32.209 21.995 (2007: Rs.512 (2. issue new shares or sell assets to reduce debt.745.951 3. where appropriate. Due to effective cash management and planning policy. CAPACITY AND PRODUCTION The capacity and production of the Company's manufacturing facility is undeterminable as it is a multi product plant involving varying processes of manufacture.186) 870.006 17.186 257.186 252.951 3. DATE OF AUTHORISATION FOR ISSUE These financial statements were authorised for issue on February 13.462 1. 33.500). the financial assets which are subject to credit risk amounted to Rs.705 2.527 1.769 840.086 872.705 2.current accounts Financial liabilities Running finances utilised under mark-up arrangements Trade and other payables Accrued mark-up 9 1. 2009.029) million.077 3.531 2.029 542.951 151.102 193.506 (2007: Rs.325 7.700 655.527 665.147 10.463 Non-interest / mark-up bearing Maturity upto one year Maturity after one Sub-total year Maturity upto one year Maturity after one year Sub-total ------------------------------------. 34.705 2.185 137. amounting to Rs.4.2.current accounts Financial liabilities Running finances utilised under mark-up arrangements Trade and other payables Accrued mark-up 1.425 9.185 (2. due to the suspension of forward contracts by the State Bank of Pakistan effective July 8. Total capital is calculated as equity.254. 2008 2007 -------------Rupees in '000------------(Restated) Total 79 In addition to the above remuneration.1.102 179.

760 65.20 0.83 11.312.000 1.604 26.757 395.228 46. GENERAL Figures presented in these financial statements have been rounded off to the nearest thousand rupees.161.442 55. 2009 Tariq Wajid Chief Executive Shareholders Category Number of Shareholders Number of Shares held % Associated Companies.212 1.200 46.11 100.284.644.002 1.45 4.00 .602 510.461 236.1) Trade and Other Payables (note 19) Accrued liabilities Finance costs (note 26) Exchange losses .31 0.080.742 51.49 4.099. plant and equipment (note Cost of Sales (note 23) Others Intangible assets (note 5) Trade and Other Payables (note 19) Other trade creditors Retention money Other operating expenses (note 24) Exchange losses .61 13.644.099 229.932 9.800 74.805 465.760 39.Notes to the Financial Statements for the year ended December 31.312 900 Pattern of shareholding as at December 31.200 204.896 137.825 1.099 140 19. Undertakings and Related Parties NIT and ICP Directors. 2008 80 38. 2008 81 Shareholding From 1 101 501 1001 5001 10001 15001 20001 50001 55001 135001 200001 225001 235001 340001 510001 1075001 1160001 5095001 To 100 500 1000 5000 10000 15000 20000 25000 55000 60000 140000 205000 230000 240000 345000 515000 1080000 1165000 5100000 Number of Shareholders 312 357 81 74 7 2 4 2 1 1 1 1 1 1 1 1 1 1 1 850 Number of Shares Held 15.685 Cost of Sales (note 23) Repairs and maintenance To Rupees in ‘000 458 5. COMPARATIVE FIGURES Prior year's material figures have been reclassified as follows for better presentation: From Property. CEO and their Spouses Public Sector Companies and Corporations Banks.683 4.294 50. Syed Babar Ali Chairman Karachi: 13th February. Development Finance Institutions.209 44.894 5.338 149. Non-Banking Finance Institutions Insurance Companies Others Individuals 3 2 12 2 2 1 21 807 850 6.430 110.120.469 9.364 342.

161.346.528 (3.898 1.825 WEALTH DISTRIBUTION TO EMPLOYEES Staff cost Workers' Profit Participation Fund 576.914 7.766 130.099.936 528.638 951. (Pvt) Ltd.678 52.865 128.469 1.212 16.099 2 465.284.894 51.357 1.161. Arshad Ali Gohar Mr.394. 2008 82 Statement of Value Added 83 2008 Rs.000 (Restated) % Under clause (i) of sub-regulation (XIX) of Regulation 37 of chapter (XI) of the Listing Regulations of Karachi Stock Exchange (Guarantee) Ltd.200 106.529 4 22 1 27 TO SHAREHOLDERS Dividend RETAINED IN BUSINESS Depreciation Retained profit 13.132 24.004.714 1.692 11 3 14 100 Wealth Distribution 2008 TO EMPLOYEES TO GOVERNMENT TO SHAREHOLDERS RETAINED IN BUSINESS 28% 27% 1% 13% 58% 5% 14% 2007 54% Note: Previous year's figures have been restated in accordance with the audited financial statements.Pattern of shareholding as at December 31.698 8.096 231.894 1.292 4. .589 208. Development Finance Institutions. Non-Banking Finance Institutions Insurance Companies Shareholders holding 10% or more voting interest SECIPE of Paris.054 21.495 252.099. Syed Babar Ali Mr.004.Trustee Deptt.267 (2.835 32. Undertakings and Related Parties SECIPE of Paris.026 53 1 54 TO GOVERNMENT Income tax Custom duty & sales tax Workers' Welfare Fund 46. Perwin Babar Ali Syeda Henna Babar Ali Public Sector Companies and Corporations Banks.896.907 58 58 521.487 100 3.503 1 42. Shareholder Category Number of Shareholders Number of Shares held WEALTH GENERATED Net sales Materials and services Other income Associated Companies. Naiyar Zamani Gohar Mrs.809 1.445 3.966. CEO and their spouse and minor children (name wise detail) Mr.726 279. France IGI Insurance Limited Ali Gohar & Co. France IGI Insurance Limited National Fertilizer Corporation 1 1 1 5.434 22.080. 1 1 1 5.179 5 23 28 40. Syed Hyder Ali Mrs.615 580.487 11 2 13 100 95.000 % 2007 Rs. Pir Ali Gohar Mr.340 510.437 5 2 1 140 19.690 18.700 951.090 6.000 3 3 1 1 1 1 2 2 535.213) 930.442 4.469 1. Directors.692 100 NIT and ICP (name wise detail) National Bank of Pakistan.850) 951.

5 2.6 2.694 2.313.1 1.162) 510.982 398.04 7.124 66. 000 Rs. .874) (230.147 1.2 29.0 1.2 51.978 9.4 19.4 17.5 8 5. Exp.2 -1.988. Rs.9 1.3 1.6 2.800 Market Value Market Value Per Share Market / Book Ratio Earnings Per Share (before tax) Earnings Per Share (after tax) Price Earning Ratio Dividend Per Share Dividend Yield Payout Ratio (after tax) Market Capitalisation Break-up Value Rs./Net Sales Admin.4 66.1 4.8 0.9 1.6 137 33.660 (155.342 352.7 2. M Rs.4 0.2 2.6 17.30 295 3.3 24.7 9.4 10.0 86.239 83.915 940.4 12.9 24.9 32.238 69.035 115.997 815.592 28.2 1.392 1.483.500 1.676 1.7 29.226.346.1 227.7 69.393 (486.9 125 29. Exp.9 30.0 12.2 4.107 1.64 10.869 153.195.4 9.801 1.8 67.8 8.0 12 3.3 (27.8 22.020.028 500.5 12 6.019.336 212.844 1.448 1.1 6. Dist.0 73.743 2.0 0.497 1.271) (870.3 11.36 28.1 7.116.5 2.6 6.4 2.5 Net current assets / (liabilities) OPERATING AND FINANCIAL TRENDS Profit and loss Net sales Gross profit Operating profit Profit before tax Profit after tax Ordinary cash dividend Capital expenditure Cash flows Operating activities Investing activities Financing activities Cash and cash equivalents at the end of the year NUMBER OF EMPLOYEES Number of permanent employees at year end 27.3 3.470 3.4 4.118.02 7.922 72.996 96.141 63.116.3 40.6 8.28 16.917) (89.1 1.9 6.891 75.167 296.114.6 75.8 16.8 2.9 124 30.264.1 2.0 72.5 6.8 4.002 96.0 9.355 Activity Ratios Inventory Turnover Average No.749 3.4 0.116.8 13.6 137 47.292 3. % % Rs.357 57.8 2.448 571.494) 154.480) (141.984.060 234.0 1.483.923 857.2 3.717 70.5 Leverage Debt to Equity Ratio Interest Earned Fixed Assets to Equity Financial Leverage Times Times Times Times 1. of Days Inventory in Stock Accounts Receivable Turnover Average Collection Period Fixed Assets Turnover Operating Fixed Assets Turnover Total Assets Turnover Times Days Times Days Times Times Times 2.087 1.823 171.157 51. Times Rs.2 -20.195 18.8 0.7 17.3 0.269 940.896.448 3.279 2.372 (143.776 984.4 85 2003 2004 2005 2006 2007 (Restated) 2008 (Rupees in thousand) FINANCIAL POSITION Balance Sheet Fixed assets Other non-current assets Current assets Non-current assets classified as available for sale Total assets Ordinary share capital Reserves Total equity Non-current liabilities Current liabilities Total liabilities Total equity and liabilities 446.9 1.9 27.2 36.842 1. & Mktg.9 65. & Mktg.603 854.3 2.044) (306.9 46.3 64.996 702.854 96.445.7 1.166.676 2.4 9.746 1.776) Profitability Ratios Sales Growth COGS as a % of Net Sales Profit before tax as a % of Net Sales Net Profit Margin Gross Profit Margin Operating Profit Margin Return on Assets Return on Equity Admin.7 1.114.428.400 1.871 2.448 1.00 5.134.302 42.9 68.7 1.7 38.725 180.70 2.124 73.974 383.778) (540.178.478 140.3 0.395 597.7 98 46.845 97.0 0.854 632.070 (183.107.6 0.50 3.52 211 1.017.339 1.6 34.002 792.984.055.0 41.909 95.9 42.229 38.9 125 27.104 856.834 (27.1 7.72 276 2. Times Rs. Note: Previous year's figures have been restated in accordance with the audited financial statements.824 4.589 (259.3 29.1 48.0 37.2 1.7 0.912) 39. 120 2.774 1.757 871.618) 694.428.0 12.7 7.6 3.929 2.8 30.797.40 1.624) (155.503 534.5 0.4 2.4 2.6 30.267 1.596 1.5 9.3 5.769.3 7.54 10.125 446.4 1.369 1.623.431 115.1 9.0 1.4 229.915 413.9 19.599 (206.673 57.342 668.8 0.357 187.3 13 4.2 11.149 154.988.7 31.3 0.8 73.3 9.612 70.40 0.3 20.818. Dist.75 3.269 13.053 1.001 15.4 382.395 96.568 227.448 404.909 668.612 59.8 3.662 115.6 8.3 0.686 1.9 1.240.028 229.6 56.1 1.146 500.97 53.3 39.Operating & Financial Highlights 84 2003 2004 2005 2006 2007 (Restated) 2008 Ratio Analysis Liquidity Ratios Current Ratio Quick Ratio Net Working Capital Net Assets Current Assets / Total Assets Inventory / Current Assets Inventory / Total Assets Times Times Rs.365 38.008 12.0 12.128) (378.163.619.355 96.365) (42.10 2.844 382.5 10.735 406.7 1.270.448 844.083) 198.2 9.920 276.9 0.861 1.4 20.39 9.1 5.413 (132.776) 1.1 11 5.141 15.3 352.839) (70.3 3.501) 30.448 1. Increase Financial Charges / Net Income % % % % % % % % % % % 14.1 17.5 413.4 0.8 11.9 8 5.6 1.2 2.326) 709 779 829 847 846 789 Note: Previous year's figures have been restated in accordance with the audited financial statements.425 1.619.528 1.163. 000 % % % 1.87 23.958 1.834 1.90 232 3.6 10.54 252 2.164 1.062 355.7 35.166.342 411.5 19.3 8.500 627.9 0.896.437 186.6 2.820 8.5 8.5 27.053 96.084.022 68.76 25.9 2.1 1.878 115.478 84.601 1.5 8.594 11.2 42.516.4 20.81 35.0 33.867.055 1.484 244.594 70.717 62.5 23.693 1.77 716.5 36.3 70.116.779 1.4 24.

To confirm the minutes of the last Annual General Meeting held on March 19.0 1. 3 03 04 05 06 07 08 0 03 04 05 06 07 08 4. The present auditors. Instrument appointing proxy must be deposited at the Registered Office of the Company at least 48 hours before the time of the Meeting. SPECIAL BUSINESS: 5.40 (14%) per share. To approve the disposal of the Company’s manufacturing site including plant & machinery and all other assets located at WAH Cantt.30% 0. 2009 03 04 05 06 07 08 0 03 04 05 06 07 08 Muhammad Irfan Company Secretary Notes: Average Collection Period 15 12 12 9 Days 6 3 0 11 13 Return on Equity 40 12 35 30 Percentage 25 20 37 31 1. 1984 and Securities & Exchange Commission of Pakistan (SECP) vide its circular No.5 9..8 0.4 0.0 03 04 05 06 07 08 3. 25th March.1. The Share Transfer Books of the Company shall remain closed from March 12. 2009 and to fix their remuneration. Talpur Road. as Auditors for the year ending December 31.5 1. 2009 (both days inclusive).10% Notice of Meeting 87 Notice is hereby given that the forty first Annual General Meeting of the Company will be held on Wednesday. by passing the following resolution as an ordinary resolution: Debt to Equity 100 55 24 39 22 33 44 Price Earning Ratio 55 50 45 76 78 53. Shareholders whose shares are deposited with Central Depository Company (CDC) are requested to bring their original Computerized National Identity Card and account number in the CDC for verification. as part of restructuring plan.2 1. 2009.” 211 120 By Order of the Board 50 Karachi: 4th March. Ford Rhodes Sidat Hyder & Co. To appoint Auditors’ for the year ending December 31. 2008 together with the Directors’ and Auditors’ reports thereon.0 0. Retained Profit Dividend 0. located at G.2 1. To receive and adopt the Balance Sheet and Profit & Loss Account for the year ended December 31.70% 20.3 1.1 10.20% 1. Ford Rhodes Sidat Hyder & Co. The Directors have recommended a cash dividend of Rs. Mkt. Exp.” 05 06 07 03 04 05 06 07 08 03 04 08 Sales Growth 15 12 Percentage 9 6 3 0 14 12 10 8 11 Market Share Price 300 250 200 Rupees 150 100 2 232 295 252 6.1. Note: Previous year's figures have been restated in accordance with the audited financial statements. as allowed by the Securities & Exchange Commission of Pakistan (SECP) vide its circular No. have offered themselves for re-appointment.7 35.0 Times 1.4 1.2 80 Percentage 67 56 40 35 Times 30 25 20 15 10 5 0 7.6 1. M/s. The Audit Committee and Board of Directors have also recommended appointment of M/s. To approve and declare dividend on the ordinary shares of the Company. Karachi to transact the following business: Current Ratio 1. 2009 at 10:00 hours in the Conference Hall of the Overseas Investors Chamber of Commerce and Industry. 2009 to March 25. 2. & Admin.4 60 45 61 40 20 0 “RESOLVED that the Company is hereby authorized to dispose the manufacturing site including plant & machinery and all other assets.Operating & Financial Highlights 86 Application of Revenue 2008 0.4 ORDINARY BUSINESS: 1..19 of 2004 and if deemed fit pass the following resolution as a special resolution: 276 “RESOLVED that the Company is hereby authorized to place its quarterly accounts on its website instead of sending the same to members by post.3 10. 2008. Wah Cantt.19 of 2004. 3.6 0. 75.T Road. No person shall act as a proxy (except for a Corporation) unless he is entitled to be present and vote in his own right.3 1. To consider the recommendation of the Board of Directors for transmission of quarterly accounts through Compay’s website in compliance with Section 245 of the Companies Ordinance.70% 2. A member entitled to attend and vote at the above meeting may appoint a Proxy to attend and vote on his behalf. 30 8 8 20 15 10 5 7 2. CDC Account Holders will further have to follow the guidelines as laid down in Circular No.00% Cost of Sales Finance Cost Taxation Dist. Chartered Accountants being eligible. . Chartered Accountants. 4. dated 26 January 2000 issued by the Securities and Exchange Commission of Pakistan.

Moreover. which is progressing as per plan and is expected to start commercial production in the second quarter of the year 2010. vide its Circular No. March 25. in CDS Important 1. 1984 (the Ordinance) provides that every listed company shall transmit to its members the accounts of each quarter. The instrument appointing a proxy.1 Name Address C. 2004. Participant ID No.N. The instrument appointing a proxy should be signed by the member or by his attorney duly authorized in writing. Witness No.2 Name Address C. Accordingly. 2009 and at any adjournment thereof. increase in the production capacity of the liquid manufacturing facility is also expected to add value to the Company's top line.I. No. (Name in Block Letters) . The SECP. no person shall act as a proxy. considering the high turnover of the Company's liquid products. proceeds from the divestment of WAH site shall reduce the borrowings and consequent borrowings costs of the Company to earn better returns for the shareholders as a whole.C. Account No. Folio No. 1984 This statement sets out the material facts concerning the special business to be transacted at the forty first Annual General Meeting of sanofi-aventis Pakistan limited to be held on March 25. No.1 of 2000 of SECP. together with the Board of Directors' resolution/Power of Attorney (if any) under which it is signed or a notarially certified copy thereof.Wednesday. 19 of 2004 dated April 14. should be deposited at the Registered Office not less than 48 hours before the time for holding the meeting. PROXY FORM I/We of (full address) being a member of sanofi-aventis As witness my / our hand this day of 2009.I. who is not a member of the Company except that a Corporation may appoint a person who is not a member. 2. Pakistan limited hereby appoint of (full address) or failing him of (full address) as my / our proxy to attend and vote for me / us and on my / our behalf at the 41st Annual General Meeting of the company to be held on Wednesday. 2009 .5/Revenue Stamp Signature of Member(s) Witness No. In respect of item 6 of the agenda Section 245 of the Companies Ordinance.N. Rs. A member entitled to attend a General Meeting is entitled to appoint a proxy to attend and vote instead of him/her. permitted that the placement of such quarterly accounts on their websites by the listed companies shall be treated as compliance of Section 245 of the Ordinance. 4. If the member is corporation it's common seal should be affixed to the instrument. In order to improve the manufacturing Karachi. This new state of the art manufacturing facility will not only automate the manufacturing of the liquid products but will also increase production efficiencies by reducing cost of production via economies of scale and lesser man-power cost. In respect of item 5 of the agenda Approval of the shareholders will be sought for the disposal of WAH manufacturing site together with the plant & machinery and all other assets located therein.C. 3. Further. benchmarking with GMP standards and as part of rationalization program. the company has initiated a project for divestment of its WAH site and shifting its entire production facility to one site . CDC Account Holders are requested to strictly follow the guidelines mentioned in Circular No.Notice of Meeting 88 Statement under Section 160 (1) (b) of the Companies Ordinance. investment on new liquid manufacturing facility at Karachi site was initiated.

Sign up to vote on this title
UsefulNot useful