Grounds for excitement

Pakistan Limited Annual Report 2010

AkzoNobel

Contents

Mission / Vision CE Statement Co$e of Con$uct & values Com'any information *+out *,-o.o+el #inancial hi0hli0hts !ur 2irectors 4e'ort of the 2irectors Statement of Com'liance 4evie% re'ort Mana0ement committees Cor'orate 8overnance & Com'liance *%ar$s & achievements / Calen$ar of ma9or events "echnolo0y $evelo'ments Community investment

02 0 04 0( 0/ 01 34 3/ 24 2( 2/ 21 4 ( /

Health, Safety, Environment & Security (HSE&S) !ur "alent #actory !vervie% of our &usinesses )aints )olyester So$a *sh Chemicals 5ife Sciences 6C6 )a,istan #inancial Statements 6C6 )a,istan Consoli$ate$ #inancial Statements .otice of meetin0 *$mission sli' #orm of 'ro:y Sustaina+ility 4e'ort

40 42

44 (/ /0 /4 /1 7( 32( 3/(

44
Adding color to peoples lives; Harnessin0 the 'o%er of our 'alette

56
Going green; *chievin0 more +y consumin0 less throu0h innovative technolo0y

60
Decades of develop ent; &rin0in0 a+out chan0e throu0h sustaina+le involvement

64
A vital part of everyday life; )rovi$in0 a s'ectrum of 'ro$ucts that are truste$ +y customers

68
Putting down roots; &rea,in0 ne% 0roun$ %ith local see$ 'ro$uction technolo0y

Grounds for e!cite ent

;hat e:cites us is as,in0 the unas,e$ <uestion= *n$ %hat $rives us is ,no%in0 that %hat is 0oo$ for our customers to$ay is not necessarily 0oo$ enou0h for them tomorro%= !ur focus is to +ecome +i00er an$ +etter than ever, an$ to continue to touch the lives of our customers as %e have for the 'ast si:ty>seven years= 2030 has +een an eventful year, a year of many firsts, an$ also of une:'ecte$ challen0es= ;e thrive on tac,lin0 these challen0es every $ay, an$ fin$in0 ne% ans%ers to <uestions +efore they are even as,e$= "hese are the reasons %e come to %or, every $ay= "hese are our ?8roun$s for e:citement?=

@ey )erformance "ndicators

#tate ent of inco e $#" in 4s= million 200A 21,4 0 %0&0 '5(&'0 ,perating result in 4s= million 200A %0&0 Profit /efore ta! in 4s= million 200A %0&0 Profit after ta! in 4s= million 200A %0&0 *1"2DA in 4s= million 200A %0&0 *1"2DA argin C of .S6 200A %0&0 )atios *+uity in 4s= million 200A %0&0

B24C

3 ,41 &4(548

B1C

,perating wor-ing capital turnover ,021 '(.&'

B2 C B23C B3AC B3AC

200A %0&0

323 '5

>73C B3/C B2(C B3(2C

,07 '(.'%

)eturn on capital e ployed in C 200A 3A=4 %0&0 %%34 )eturn on fi!ed assets C of revenue 200A 2=1 %0&0 4030 Dividend yield4 in C 200A %0&0

2,04( %(4%0

,1AA 4(65.

4=1 &%3&

3 =7 &'3'

> C B3AC

,perating result per e ployee in 4s= million 200A 2= %0&0 Cas5 flows $et cas5 fro in 4s= million 200A %0&0 %38

B22C >41C

Dividend and earnings per s5are *arnings per s5are in 4s= 200A 34=7 %0&0 &.350 Dividend per s5are 6proposed7 in 4s= 200A 1=00 %0&0 &.350

operating activities 4,47/ %(''4

B33AC

Capital e!penditures in 4s= million 200A %0&0

12/ 854

B C

D &ase$ on year en$ mar,et value

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E 8ey Perfor ance "ndicators E 0&

,ur 9ision
2o orrows Answers 2oday
!ften 'eo'le achieve only incremental 'ro0ress, +ecause their vie% of tomorro% is $etermine$ +y %hat they see to$ay= ;e +elieve the future +elon0s to those smart enou0h to challen0e it= ;e +elieve that real 'ro0ress +elon0s to those %ho not only thin, %ith coura0e, +ut also have the coura0e to $eliver on the thou0ht= "omorro%Fs ans%ers, $elivere$ to$ay= ;hat $rives us is ,no%in0 that %hat is 0oo$ for our customers to$ay is not necessarily 0oo$ enou0h for them tomorro%= ;hat e:cites us is as,in0 the unas,e$ <uestion= ;hat ins'ires us is seein0 the o''ortunity others cannot= ;hat unites us is the intelli0ence to $eliver %here others have not= "his +enefits our customers +ecause %e sustain their future com'etitiveness an$ meet the consumersF uns'o,en nee$s= "his am+ition $efines us= "his is the %ay %e %or,= "his is %hy %e come to %or,=

,ur :ission
"o +e the 'artner of first choice for customers an$ su''liers, ensurin0 sustaine$ lea$ershi' 'ositions in the mar,ets %here %e com'ete, $eliverin0 lon0>term +usiness value throu0h a hi0h 'erformance culture, innovation, ethics an$ res'onsi+le care=

#trategic 25rust
"o achieve our mission %e %illG H 8ive hi0hest 'riority to health, safety, environment an$ ethical matters H Ensure our 'ro$ucts $eliver ma:imum value to customers +y maintainin0 $e'en$a+le su''ly, consistent <uality, an$ relia+ility H I'hol$ e:cellent service levels to foster lon0>term relationshi's %ith customers an$ su''liers H *chieve the hi0hest 'ossi+le o'eratin0 efficiencies an$ lo%est costs, an$ e:'an$ the +usiness throu0h selective ca'acity increase an$ ne% 'ro$uct launches H 2evelo' an$ retain a team of hi0hly ca'a+le 'eo'le $e$icate$ to $eliverin0 the mission

Statement from our C5ief *!ecutive

!ur ri0orous efforts to maintain our com'etitiveness %ere un$er'inne$ +y a strict focus on o'erational effectiveness, s'ecifically concentrate$ on JCustomers, Costs an$ CashK= ;e can loo, ahea$ to 2033 %ith confi$ence, ho'e an$ resilience= ;e ,no% that there are challen0es ahea$, +ut %e also ,no% that %e have the ri0ht resources to meet those challen0es=

2ear Sta,ehol$ers, ;ith the close of 2030, %e com'lete /7 years of e:istence as a com'any= Startin0 as a so$a ash manufacturin0 concern tuc,e$ in the salt ran0es of )un9a+ in 3A44, 6C6 )a,istan is no% a lea$in0 manufacturin0 com'any of )a,istan %ith a ran0e of 'ro$ucts that 'ractically touch all lives in the country every$ay= "he 9ourney has +een lon0 an$ the roa$ tou0h +ut %hat has hel$ us to0ether is a consistent focus on $eliverin0 customer value an$ a soli$ commitment from our 'eo'le in $oin0 so= 2030 %as a tou0h year %ith continuation of the ener0y crisis an$ a hei0htene$ security situation= Ho%ever, the tou0hest challen0e came in the form of floo$s that hit the country in the secon$ half of the year turnin0 into one of the %orst national $isasters in the history of our nation= !ver 20 million 'eo'le lost their homes an$ livelihoo$s, cro's an$ cattle %ere $estroye$ %hile infrastructural $ama0es %ere colossal= "he ma0nitu$e of the $isaster $eman$e$ a s%ift an$ effective res'onse= 6 am 'rou$ to say that the com'any an$ its em'loyees too, the tas, to heart an$ imme$iately res'on$e$ to the challen0e, or0ani-in0 a country%i$e floo$ relief 'ro0ram that 'rovi$e$ over 3 million meals an$ ur0ent me$ical assistance to affectees across the country= &usiness con$itions %ere $ifficult throu0hout the year 'articularly after the floo$s= Ho%ever, our a+ility to <uic,ly a$a't to the chan0in0 circumstances %as crucial an$ %e carefully re+oun$e$ as the year came to an en$= !ur financial 'erformance an$ to' line 0ro%th is an evi$ence of the resilience of our footin0 an$ soli$ity of our 'ortfolio= "his %as a year of many firsts %ith our )olyester &usiness hittin0 ne% 'ro$uction recor$s, So$a *sh e:'lorin0 ne% e:'ort mar,ets an$ esta+lishin0 itself as a re0ional 'layer, )aints securin0 the first to' coat or$er, Chemicals intro$ucin0 2issolvine an$ 5ife Sciences launchin0 its o%n 'ro$ucts in various se0ments= ;a<ar * Mali, ;e also reali-e that there are areas %here %e nee$ to focus more= Creatin0 an en0a0e$ %or,force is a ,ey focus area for us an$ %e have ste''e$ u' our em'loyee en0a0ement 'ro0rams to create a culture of coo'eration an$ co>creation= !ur safety recor$s have +een e:cellent over the years, an$ %e shall continue to vi0orously focus on +ehavior +ase$ safety 'ro0rams= 6n 2030, %e 'ro0resse$ further on our 9ourney of sustaina+ility an$ esta+lishe$ a sustaina+ility inte0ration 'ara$i0m for the com'any= ;e con$ucte$ a com'rehensive sta,ehol$er en0a0ement 'ro0ram, fee$+ac, from %hich +ecame the ste''in0 stone for our %ay for%ar$= ;e set @ey )erformance 6n$icators an$ have no% ali0ne$ +usiness an$ functional 'riorities accor$in0ly= 6n 2033, %e shall stri$e for%ar$ to further inte0rate sustaina+ility %ithin the or0ani-ation= More $etails of our sustaina+ility strate0y an$ 'erformance are 0iven in the Sustaina+ility section of this re'ort= *t 6C6 )a,istan, %e have a history of servin0 the nation?s nee$s an$ 6 am 'rou$ to +e lea$in0 this 0reat com'any at such an e:citin0 'erio$ %here $es'ite tremen$ous challen0es %e continue to 0ro% an$ serve +etter= 6 %oul$ li,e to e:'ress 0ratitu$e to all sta,ehol$ers %ho have hel'e$ us, an$ continue to $o so, on this %on$erful 9ourney= 6 %oul$ 'articularly li,e to than, all my collea0ues %ho are hel'in0 lea$ us into a future of many 'ossi+ilities= 6 %ish you the very +est= ;arm re0ar$s,

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E C* #tate ent E 0'

Co$e of Con$uct & values

;e have al%ays ha$ a stron0 sense of +usiness 'rinci'les an$ hi0h ethical stan$ar$s for the con$uct of our +usiness= !ur +usiness 'rinci'les an$ ethical stan$ar$s are enshrine$ in the 6C6 )a,istan Co$e of Con$uct=
A /rief overview of t5e code; 1usiness principles H Each em'loyee shoul$ im'lement our core values, com'ly %ith an$ o+serve a''lica+le la%s, su''ort fun$amental human ri0hts an$ 0ive $ue re0ar$ to health, safety an$ environment 1usiness integrity H &ri+ery an$ any other form of unethical +usiness 'ractices are 'rohi+ite$ H ;e 'romote free enter'rise an$ re<uire strict com'liance %ith com'etition la%s H *s res'onsi+le cor'orate citi-ens, %e encoura0e 'artici'ation in community activities an$ ta,e all measures for the safety an$ health of our em'loyees as %ell as for the 'rotection of the environment H Em'loyees are e:'ecte$ to maintain confi$entiality an$ to act in the Com'anyFs interests at all times Co pany responsi/ilities "he Co$e encoura0es us toG H a$o't the s'irit of o'en communication H 'rovi$e e<ual o''ortunities an$ a healthy, safe an$ secure environment H ensure the ri0hts of em'loyees to 9oin unions/ associations H 'rotect 'ersonal $ata of em'loyees H en0a0e in an active 'erformance an$ $evelo'ment $ialo0 * ployee responsi/ilities "he Co$e 'rovi$es em'loyees 0ui$ance on their res'onsi+ilities vis a visG H Me$ia relations an$ $isclosures H 6nsi$e information H Cor'orate i$entity H )rotectin0 our intellectual 'ro'erty H 6nternet use H &usiness travel 'olicy H )rohi+ition on su+stance a+use

,ur values H #ocusin0 on our customerFs future first H Em+racin0 entre'reneurial thin,in0 H 2evelo'in0 the talents of our 'eo'le H "he coura0e an$ curiosity to <uestion H 6nte0rity an$ res'onsi+ility in our actions

04 E Code of Conduct < values E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Com'any infor ation

1oard of Directors M L Laffer ;a<ar * Mali, Mueen *f-al D *li * *0a &art @aster
Chairman .on>E:ecutive Chief E:ecutive .on>E:ecutive E:ecutive .on>E:ecutive

Lames 4 4ees #ero- 4i-vi 4o0ier M 8 4oelen M .a%a- "i%ana 2ere, ; ;elch

.on>E:ecutive E:ecutive .on>E:ecutive .on>E:ecutive .on>E:ecutive

Audit < )e uneration #u/ Co Audit su/ co M L Laffer Mueen *f-al &art @aster ittee

itees of t5e 1oard )e uneration su/ co ittee M .a%a- "i%ana Chairman .on>E:ecutive Lames 4 4ees .on>E:ecutive

Chairman .on>E:ecutive .on>E:ecutive .on>E:ecutive

C5ief =inancial ,fficer #ero- 4i-vi Co pany #ecretary Saira .ishtar *!ecutive :anage ent 2ea ;a<ar * Mali, Chief E:ecutive *li * *0a D Vice )resi$ent, So$a *sh &usiness @hali$ *lvi Vice )resi$ent, Chemicals &usiness Lehan-e+ @han Vice )resi$ent, )aints &usiness 1an-ers *s,ari &an, 5imite$ &an, *l Ha+i+ 5imite$ &an, *lfalah 5imite$ Citi+an, .=*= 2eutsche &an, *8 #aysal &an, 5imite$ Ha+i+ &an, 5imite$ HS&C &an, Mi$$le East 5imite$ Ha+i+ Metro'olitan &an, 5imite$ Auditors "nternal auditors Ernst & Moun0 #or$ 4ho$es Si$at Hy$er, Chartere$ *ccountants )egistered office 6C6 House, ( ;est ;harf, @arachi>74000 "el N 333>300>200, (023) 2 3 737>22 #a: N 2 337 A ;e+siteG %%%=a,-ono+el=com/', EmailG cc'a'a,istanOa,-ono+el=com

Suhail *slam @han M *sif Mali, #ero- 4i-vi

Vice )resi$ent, )olyester &usiness Vice )resi$ent, Cor'orate H4 & 5ife Sciences Chief #inancial !fficer

MC& &an, 5imite$ Mee-an &an, 5imite$ .ational &an, of )a,istan !man 6nternational &an, Sam+a &an, 5imite$ Stan$ar$ Chartere$ &an, ()a,istan) 5imite$ Inite$ &an, 5imite$

*!ternal auditors @)M8 "aseer Ha$i & Co=, Chartere$ *ccountants #5ares )egistrar #*MC! *ssociates ()vt) 5t$= 3st #loor, State 5ife &uil$in0 3>*, 6=6 Chun$ri0ar 4oa$, @arachi>74000 "el G (023) 2427032, 242/(A7, 24207((, G 247(/0/, 242(4/7 #a: G (023) 242/7(2

names in al'ha+etical or$er

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E Co pany infor ation E 05

*+out A->o$o/el
?oo-ing closer( seeing furt5er
5oo, aroun$ you an$ chances are you?ll see *,-o.o+el?s influence= "he com'anyFs 'ro$ucts can +e foun$ every%here from the &ei9in0 !lym'ic arenas an$ Sy$ney Har+or &ri$0e to, <uite 'ossi+ly, the house ne:t $oor to you=
*,-o.o+el is the lar0est 0lo+al 'aints an$ coatin0s com'any an$ a ma9or 'ro$ucer of s'ecialty chemicals= Hea$<uartere$ in *mster$am, the .etherlan$s, *,-o.o+el is a 8lo+al #ortune (00 com'any consistently ran,e$ as one of the lea$ers on the 2o% Lones Sustaina+ility 6n$e:= ;ith o'erations in more than 10 countries, it has ((,000 'eo'le aroun$ the %orl$ committe$ to e:cellence an$ $eliverin0 P"omorro%Fs *ns%ers "o$ayQ= *,-o.o+el su''lies in$ustries an$ consumers %orl$%i$e %ith innovative 'ro$ucts, an$ is 'assionate a+out $evelo'in0 sustaina+le ans%ers for its customers= 6ts 'ortfolio inclu$es %ell ,no%n +ran$s such as 2ulu:R, Si,,ensR, 6nternationalR an$ E,aR= 6C6 )a,istan %as ac<uire$ +y *,-o.o+el on Lanuary 2, 2001= ;e are 'rou$ to +e 'art of a 0rou' that is committe$ to innovation,

06 E A/out A->o$o/el E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

;almart selects *,-o.o+el as 'rimary 'aint su''lier for IS stores

*,-o.o+el, ma,in0 the #6#* ;orl$ Cu' 2030 the most colorful %orl$ cu' ever

*,-o.o+el?s Stic,erfi: no% +ein0 offere$ +y "oyota

intro$ucin0 ne% i$eas an$ $evelo'in0 sustaina+le ans%ers for our customers every $ay= ;e loo, for%ar$ to a +ri0ht an$ e:citin0 future as one stron0 com'any %ith the $rive to $eliver P"omorro%Fs *ns%ers "o$ayFQ= #pecialty C5e icals @5y do so e of t5e worlds /iggest anufacturers rely on usA *s a ma9or 'ro$ucer of s'ecialty chemicals %ith lea$ershi' 'ositions in many mar,ets, %e ma,e sure that in$ustries %orl$%i$e are su''lie$ %ith <uality in0re$ients for lifeFs essentials= "he o'erational 'erformance of our S'ecialty Chemicals $ivision is amon0 the +est in the in$ustry= *s a result, our 'ro$ucts a''ear in a remar,a+le variety of items %e all use every $ay= "here are over 2,000 items in our s'ecialty chemical 'ortfolio= Decorative Paints =ro /rilliant ideas to /rilliant paints *,-o.o+el is the %orl$?s lea$in0 $ecorative 'aint com'any, home to famous names li,e Si,,ens, 2ulu: an$ Hammerite= !ur 2ecorative )aints +usiness has a hu0e ran0e of <uality 'ro$ucts for every situation an$ surface= *s %ell as 'aints, lac<uers an$ varnishes, %e ma,e a$hesives an$ floor levelin0 com'oun$s= ;e also offer a ran0e of mi:in0 machines, color conce'ts an$ trainin0 courses for the +uil$in0 an$ renovation in$ustry= *n$ our s'ecialty coatin0s for metal, concrete an$ other critical +uil$in0 materials lea$ the mar,et=

Perfor ance Coatings Coatings t5at 5elp /usinesses do /etter ;eFre %orl$ lea$ers %hen it comes to 'erformance coatin0s= !ver the years %eFve earne$ a roc,>soli$ re'utation +ase$ on our innovative technolo0ies, first>class service an$ fle:i+le $istri+ution= !ur coatin0 +ran$s inclu$e famous names li,e 6nternationalR, Si,,ensR an$ 6nter'onR= )erformance coatin0s have hun$re$s of uses= ;eFve $ivi$e$ them into five +usinessesS to0ether they su''ly +usinesses ran0in0 from construction to consumer electronics an$ shi''in0 to s'orts e<ui'ment= A->o$o/el /eco es pri ary paint supplier to @al art *,-o.o+el has +een selecte$ +y the %orl$s lar0est retailer ;almart to +e the 'rimary 'aint su''lier for the retailerFs IS stores= * 'ortfolio of interior an$ e:terior 'aints %ill +e offere$ to more than ,(00 ;almart stores= $ew :P4B%6 =or ula & car *,-o.o+el has +ecome a full technolo0y 'artner to the Mc5aren 8rou' after e:'an$in0 an$ e:ten$in0 the current relationshi' %ith Vo$afone Mc5aren Merce$es= "he t%o com'anies have +een %or,in0 to0ether since 2001, %hen *,-o.o+el > throu0h its Si,,ens +ran$ > +ecame the official su''lier of 'aint solutions to the Vo$afone Mc5aren= "he stri,in0 ne% M)4>2/, %hich features a so'histicate$, hi0h 0loss Si,,ens system, %ill +e $riven +y former cham'ions Lenson &utton an$ 5e%is Hamilton in the 8ran$ )ri:=

25e ost colorful @orld Cup ever *,-o.o+el su''lie$ 'aint for five of the main sta$iums of the 2030 #oot+all ;orl$ Cu' in South *frica= "he sta$iums %ere coate$ %ith *,-o.o+el 6nternational 'rotective coatin0s, 6nter'on 'o%$er coatin0s an$ 2ulu: $ecorative 'aint= 2oyota :otor *urope /eco es first glo/al auto otive anufacturer to offer #tic-erfi!C Stic,erfi:Q is an a$hesive system %hich uses 'atente$ *,-o.o+el 'aint technolo0y in com+ination %ith a s'ecially $evelo'e$ vinyl stic,er= 6t has an ultra>thin hi0h>tech a$hesive film coate$ %ith a 'erfect match of the ori0inal vehicle color, usin0 'rofessional hi0h><uality automotive refinish 'aint= Every color on offer is matche$ to "oyotaFs master 'lates to ensure the +est 'ossi+le match, an$ covers the most common colors of "oyota vehicles in Euro'e= * ne% "oyota Stic,erfi:Q solution %ill +e availa+le %ith every ne% color intro$uce$ to the ran0e= &ran$e$ as "oyota Stic,erfi:Q, the 'ro$uct %ill +e availa+le in "oyota sho%rooms as 'art of a 'rotection 'ac, for ne% an$ use$ "oyota vehicles, an$ also from "oyota *fter Sales facilities throu0hout the EME* re0ion=

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E A/out A->o$o/el E 0.

#inancial 5ig5lig5ts
,ur results at a glance
H 2030 turnover 0ro%th at 22 'ercent H 2030 0ross 'rofit 0ro%th at 31 'ercent H 2030 'rofit after ta: 0ro%th at 3A 'ercent H 2030 earnin0s 'er shareG 4s 37=(0 (200AG 4s 34=7 ) H "otal $ivi$en$ 'er share for 2030G 4s 37=(0 (200AG 4s 1=00) 'ro'ose$
2urnover /y /usiness "otal "urnover 4s= A=A &illion C )olyester 4( So$a *sh 20 )aints 37 5ife Sciences 30 Chemicals 1 ,perating result /y /usiness "otal o'eratin0 result 4s= =7 &illion C %4D )olyester (4 So$a *sh 24 )aints 4 4D 5ife Sciences 32 &%D Chemicals /

54D

6D

6n my t%o years %ith the com'any, +oth my routine tas,s an$ e:citin0 challen0es have contri+ute$ to%ar$s enrichin0 my e:'erience=
, ar =aroo+
#inancial *nalyst

D E:clu$in0 $iscontinue$ @ansai +usiness DD E:clu$in0 one>off reco0nition of $eferre$ ta: cre$it an$ $iscontinue$ @ansai +usiness 08 E =inancial 5ig5lig5ts E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

;e are a com'any %ith five +usiness streams, each havin0 its o%n $ynamics an$ intricate financial structure= Mer0in0 the syner0ies an$ consoli$atin0 this $iversity to a sin0le cor'orate 'ortfolio is %hat ma,es my %or, e:citin0T
$asir Ea al
Cor'orate #inance Mana0er & "reasurer

6 love ho% every $ay at %or,, 6 0et to interact %ith $ifferent 'eo'le, ta,e u' challen0in0 tas,s, e:'lore ne% areas of %or, an$ overall $evelo' my in$ivi$ual as %ell as 'rofessional ca'a+ilities=
As a Ea il #5ei-5
#inancial "rainee !fficer

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E =inancial 5ig5lig5ts E 00

)rofita+ility ratios

Profit after

argin

E:clu$in0 one>off reco0nition of $eferre$ ta: cre$it in 200( an$ $iscontinue$ @ansai +usiness from 200( > 2007

&0 E =inancial 5ig5lig5ts E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

5i<ui$ity & other ratios Efficiency ratios

Cost ratios

D!'eratin0 cost inclu$es cost of sales, sellin0 & $istri+ution an$ a$ministration & 0eneral e:'enses

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E =inancial 5ig5lig5ts E &&

,perating < =inancial Fig5lig5ts

)atios Profita/ility )atios 8ross mar0in 8ross 'rofit turnover !'eratin0 mar0in .et 'rofit mar0in )rofit mar,u' )rofit +efore ta: mar0in 4eturn on e<uity 4eturn on ca'ital em'loye$ 4eturn on assets 4eturn on fi:e$ assets Growt5 )atios .et sales !'eratin0 results E&6"2* )rofit after ta: !'eratin0 %or,in0 ca'ital *fficiency )atios *sset turnover #i:e$ asset turnover 6nventory turnover Current asset turnover Ca'ital em'loye$ turnover !'eratin0 %or,in0 ca'ital turnover 6nventory turnover ratio 2e+tor turnover ratio Cre$itor turnover ratio !'eratin0 cycle 4evenue 'er em'loyee .et income 'er em'loyee Ca'e: to sales Cost )atios !'eratin0 costs (Cof sales) *$ministration costs (Cof sales) Sellin0 costs (C of sales) 6nterest cost (Cof sales) *+uity )atios )rice earnin0s ratio Earnin0s 'er share 2ivi$en$ 'er share 2ivi$en$ cover 2ivi$en$ ($eclare$ for the year) yiel$ 2ivi$en$ ($eclare$ for the year) 'ayout Mar,et value 'er share &rea,>u' value 'er share %ith sur'lus on revaluation &rea,>u' value 'er share e:clu$in0 sur'lus on revaluation ?i+uidity )atios Current ratio Uuic,/*ci$ test ratio Cash ratio ?everage )atios 2e+t to e<uity "otal $e+t to ca'ital ratio 6nterest cover #u ary of Cas5 =lows Cash 0enerate$ from o'erations .et cash 0enerate$ from o'eratin0 activities .et cash use$ in investin0 activities .et cash use$ in financin0 activities Cash an$ cash e<uivalents at 2ecem+er 3 %00& %00% %00' %004 %005 %006 %00. %008 %000 %0&0 C C C C C C C C C C 2 = 3A=24 3 =2 (= / 0=42 (=1/ 24=0( 2(=// 4=2 2 =( 3A=04 3(=44 1=12 3(=31 2 =( (=A2 40=40 3(=73 3 =4( 31=7/ 34=70 3(=3/ /=00 4=2 37=2 4=4( 34=0 37=(0 (=42 3A=/1 3(=/2 3 =23 7=/4 /=00 31=(3 /= 0 3 =3 3(=44 7=(A 2(=03 31=34 3(=A2 A=A7 1=(3 22=3/ 1=7 3/=(/ 31=21 A=1( 2(=31 20=1( 31=/0 32=// 7=44 2/= 4 30=12 34=31 23=(7 1=/0 2A=4/ 20=A 31=(4 32=A/ 7=7( 2/=47 32=02 3(=70 2 =17 A=(3 4=A2 3A=77 37=22 30=A1 /=70 24=/4 30=32 34=A/ 23=77 30=01 2=/3 3A=A/ 37=(2 30=/( 7=3A 24=A4 30=13 3(=37 3A= 1 A=(4 2=12 3A=0 3/=A3 30=(7 /=A3 2 =(3 30=/2 3/=70 22=4 33=02 40=A3

C C C C C

1=0 (A=2A) (43=/4) ((2=11) ( 3=01)

3(=/0 (2 =00) (3(=42) 227= (33=4 )

41= ( 0=A1 3=/3 ((1=/A) ( =3/

(2=/A) 2 =12 3/=10 1=0/ (304=/7)

4=74 /=13 2(= 4 41=/ ( 24=A()

(=A4 4=(4 2(=A( (7=42) (3AA=12)

37=/ 20= 7 20=(1 22=/3 (331=1/)

20=74 2=2A 0=00 4= 7 231=30

2=27 (0=13) 3=04 A=77 (12=3A)

2 =(7 22=/2 3A=4( 31=71 20=/4

"imes "imes "imes "imes "imes "imes 2ays 2ays 2ays 2ays 4s?000 4s?000 C

0=7A 3=71 =3/ 2=24 2= ( 3/=74 304=43 37=// (1=0 /4=0 7,4 1 AA 1=03

0=1A 2=3 4=34 2=/( 2=20 23=1( A3= 7 3A=07 7A=(1 0=1/ A,2/4 3,40/ 4=0A

3=21 =21 (=7 =42 2=1 23=3/ /0=0/ 3 =2( (/= ( 3/=A/ 3 ,(/1 (74 2=(

3=27 =21 4=3/ 2=4( 2= A (440=/2) 7/=A4 3(=0A 7(=/2 3/=43 3 ,4 4 10/ =32

3=3/ 2=(2 4=7 2=14 2=0A (301=/3) 13=77 34=44 71=70 37=(2 34,3 7 3,20 7=77

3=3/ 2= (=07 2=7A 3=A3 ( 1= 1) 7 =/7 32=14 7(=A0 30=/2 3(, 04 3,3 1 (=(

3=2 2=/A /=24 2=(( 2=01 (20=/2) (A=1( 3 =/( 71=24 (4=74) 37,A4/ 3, A3 4=/(

3=(3 2=A7 /= A =4/ 2=21 23=0A (2=4 33=13 (0=(2 3 =72 23,044 3,430 (=4(

3= =01 /=01 2=(/ 2=07 323=0/ (1=00 33=01 43=00 21=01 23,1(2 3,(72 2=A3

3=(A =17 /=73 2=A/ 2= A (=(/ (3=3A 1=A0 40=0/ 20=0 2/,171 3,1(1 2=4

C C C C

1/=77 4=34 (=A( (=AA

A3=31 4=20 /=0 =44

A4=00 =2/ (=4 2=33

A2= / =77 4=22 3=44

A0=0 =7( 4=43 3=(0

17= 4 =73 4=41 3=4(

17=04 = 0 4=/7 0=44

1A=02 4=0( 4=74 0= 2

1A= ( 4=34 (=37 >

1A=4 =70 4=77 >

4s 4s 4s "imes C C 4s 4s 4s

1=2( 4=21 2=00 2=34 (=/7 41=AA (= 0 40=/4 37=71

4=04 3 = / 2=2( (=A4 4=37 3/=14 ( =A( 41=13 =01

3(=40 (=(2 2=(0 2=23 2=A4 4(=2A 1(=00 44=2( A= (

33=7/ 7=/2 4=00 3=A3 4=4/ (2=41 1A=/( /2=2( (1=02

32=40 33= (=00 2=27 =(/ 44=34 340=(0 73=A( /1= A

33=03 30=4A (=(0 3=A3 4=7/ (2=4( 33(=(0 12=0( 7 =A(

3(=2A 32=1/ /=00 2=34 =0( 4/=// 3A/=/( 1A=20 13=A3

(=32 3 =42 /=(0 2=0/ A=4/ 41=4 /1=73 A/=/2 1A=/1

33=44 34=7 1=00 3=14 4=7( (4= 3 3/1=4A 30 =1( A7=34

1=24 37=(0 37=(0 3=00 32=3 300=03 344=24 333= ( 304=13

4atio 4atio 4atio

0=(AG3 0=27G3 0=0/G3

0=/7G3 0= 2G3 0=07G3

0=/7G3 0= G3 0=3 G3

3= 1G3 0=/AG3 0= G3

3=30G3 0=(/G3 0=2AG3

3=2AG3 0=7 G3 0= G3

3=44G3 0=A7G3 0=(1G3

3=13G3 3=02G3 0=44G3

3=A2G3 3=27G3 0=77G3

2=37G3 3= AG3 0=1(G3

C 4atio "imes

2(=4 44G(/ 3=A1

7=44 G/7 2=72

> 40G/0 =33

3= A 3GAA (= /

> 0G300 /=12

0=04 0G300 1=44

> 0G300 21=42

> 0G300 2=2A

> 0G300 >

> 0G300 >

4s= million 4s= million 4s= million 4s= million 4s= million

2,342=4 A10=1 (71A=0) 70=7 447=(

3,13A=2 3,02/=( ( 2=() (A/(=1) 47(=1

2,3 A=/ 3,A3/=( 3,A =3 3,12 =A (30 =2) , 7A=2 (3,2/3=7) (4,(42=4) 3,044=0 3,704=7

2,///=A 2,(22=0 (3,420=1) (3,331=2) 3,/17=7

,((4=0 ,477=3 (3,040=2) (2, 7=3) 3,717=(

4, 32=4 3,311=4 4,A 1= ,73/=2 4,0A =( A/A=1 4,47/=2 2, 4=4 (3, A7=4) (3,713=0) (A 1=0) (7(2=A) (1/1=() (1 2=1) (3,043=0) (3, 11=0) ,/3(=3 3,A73=3 4,4/1= 4,//3=1

E:clu$in0 turnover of $iscontinue$ furnace oil an$ coal +usinesses in 200 , one>off 'rofit on sale of ))"* shares in 2004, reco0nition of $eferre$ ta: cre$it in 200( an$ $iscontinue$ @ansai +usiness in 200( > 2007= "he com'aratives (2002 to 2004) have not +een restate$ $ue to chan0e in accountin0 'olicy on a$o'tion of 6#46C 4=

&% E =inancial 5ig5lig5ts E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

9ertical and Fori>ontal Analysis

9ertical Analysis Profit and ?oss Account .et sales, commission & toll income Cost of Sales 8ross 'rofit *$ministration & 8eneral E:'enses Sellin0 & 2istri+ution E:'enses !'eratin0 4esult #inancial Char0es !ther !'eratin0 Char0es !ther !'eratin0 6ncome )rofit +efore ta:ation "a:ation )rofit after ta:ation 1alance #5eet "otal E<uity an$ 4evaluation 4eserve .on Current 5ia+ilities Current 5ia+ilities "otal E<uity an$ 5ia+ilities .on Current *ssets Current *ssets "otal *ssets Fori>ontal Analysis %005 )s3 Profit and ?oss Account .et sales, commission & toll income Cost of Sales 8ross 'rofit *$ministration & 8eneral E:'enses Sellin0 & 2istri+ution E:'enses !'eratin0 4esult #inancial Char0es !ther !'eratin0 Char0es !ther !'eratin0 6ncome )rofit +efore ta:ation "a:ation )rofit after ta:ation 1alance #5eet "otal E<uity an$ 4evaluation 4eserve .on Current 5ia+ilities Current 5ia+ilities "otal E<uity an$ 5ia+ilities .on Current *ssets Current *ssets "otal *ssets 31,47/=( 3(,324=1 , (3=7 /A =/ 13(=/ 3,142=( 217=3 301=0 3/(=0 3,/32=4 40=3 3,(72= %005 D 4=7 3=/ 23=/ 4=4 A=/ /=1 30=A (A=A >A3=2 4(=2 2 =7 41=/ %006 )s3 3A,(74=3 3(,4A2=/ 4,013=( 72/=4 17/=3 2,47A=0 3A= 373=3 32A=2 2,337=1 //2=2 3,4((=/ %006 D (=A 2=4 23=1 4=7 7=4 4=( 33=2 (1=( >23=7 3= 3(4A=( >7=4 %00. )s3 2 ,024=3 31,20(=4 4,131=1 7/0=2 3,074=( 2,A14=0 34/=4 222= 3( = 2,7/1=( A1 =7 3,714=1 %00. D 37=/ 37=( 31=3 4=7 22=7 20=4 >(4=3 2A=A 31=/ 0=7 41=/ 22=/ %008 )s3 27,7A1=A 22, 0 =3 (,4A(=1 3,32/=2 3, 37= ,0(2=4 23A= 2 =7 23 =4 2,132=1 A(0=0 3,1/2=7 %008 D 20=7 22=( 34=0 41=3 22=/ 2= 4A=1 (=3 A=2 3=/ > =4 4=4 %000 )s3 21,42A=A 22,7(4=0 (,/7(=A 3,371=3 3,470=2 ,027=7 3/7=( 247=/ 4/0=0 ,072=( 3,027=1 2,044=7 %000 D 2= 2=0 = 4=/ 33=/ >0=1 >2 =/ (=A 33(=( A=2 1=2 A=1 %0&0 )s3 (,3 0=0 21,44 =7 /,/1/= 3,2AA=0 3,/74=7 ,732=/ 3/ =A 0 =4 41/= ,7 3=( 3, 02=7 2,421=1 %0&0 D 2 =/ 2(=0 37=1 30= 3 =A 22=/ >2=2 22=/ (=7 23=4 2/=7 31=1 %005 )s3 31,47/=( 3(,324=1 , (3=7 /A =/ 13(=/ 3,142=( 217=3 301=0 3/(=0 3,/32=4 40=3 3,(72= %005 D 300=0 13=A 31=3 =1 4=4 30=0 3=/ 0=/ 0=A 1=7 0=2 1=( %006 )s3 3A,(74=3 3(,4A2=/ 4,013=( 72/=4 17/=3 2,47A=0 3A= 373=3 32A=2 2,337=1 //2=2 3,4((=/ %006 D 300=0 7A=3 20=A =7 4=( 32=7 3=/ 0=A 0=7 30=1 =4 7=4 %00. )s3 2 ,024=3 31,20(=4 4,131=1 7/0=2 3,074=( 2,A14=0 34/=4 222= 3( = 2,7/1=( A1 =7 3,714=1 %00. D 300=0 7A=3 20=A = 4=7 3 =0 0=/ 3=0 0=7 32=0 4= 7=1 %008 )s3 27,7A1=A 22, 0 =3 (,4A(=1 3,32/=2 3, 37= ,0(2=4 23A= 2 =7 23 =4 2,132=1 A(0=0 3,1/2=7 %008 D 300=0 10=2 3A=1 4=3 4=7 33=0 0=1 0=1 0=1 30=3 =4 /=7 %000 )s3 21,42A=A 22,7(4=0 (,/7(=A 3,371=3 3,470=2 ,027=7 3/7=( 247=/ 4/0=0 ,072=( 3,027=1 2,044=7 %000 D 300=0 10=0 20=0 4=3 (=2 30=/ 0=/ 0=A 3=/ 30=1 =/ 7=2 %0&0 )s3 (,3 0=0 21,44 =7 /,/1/= 3,2AA=0 3,/74=7 ,732=/ 3/ =A 0 =4 41/= ,7 3=( 3, 02=7 2,421=1 %0&0 D 300=0 13=0 3A=0 =7 4=1 30=/ 0=( 0=A 3=4 30=/ =7 /=A

A,A17=4 A0=/ (,1A3=A 3(,A/A=A A,4/A=1 /,(00=3 3(,A/A=A

/ 3 7 300 (A 43 300

33, 1A=2 304=3 (,4 /= 3/,A2A=/ A,A0(=7 7,02 =A 3/,A2A=/

/7 3 2 300 (A 43 300

32, 13=0 33A=/ /,2/ =1 31,7/4=4 A,743=/ A,022=1 31,7/4=4

// 3 300 (2 41 300

3 ,430=A /3 =0 4,44/=1 31,470=7 30,4 (= 1,0 (=4 31,470=7

7 24 300 (/ 44 300

34,434=/ 3,201=3 (,7AA=A 23,422=7 30,2A7=( 33,32(=2 23,422=7

/7 / 27 300 41 (2 300

3(,4((=4 3,0A =2 (,412=0 22,0 0=7 30,3(2=4 33,171= 22,0 0=7

70 ( 2( 300 4/ (4 300

A,A17=4 A0=/ (,1A3=A 3(,A/A=A A,4/A=1 /,(00=3 3(,A/A=A

3/ 30 3 3( 43 >30 3(

33, 1A=2 304=3 (,4 /= 3/,A2A=/ A,A0(=7 7,02 =A 3/,A2A=/

34 3( >1 / ( 1 /

32, 13=0 33A=/ /,2/ =1 31,7/4=4 A,743=/ A,022=1 31,7/4=4

A 3( 3( 33 >2 21 33

3 ,430=A /3 =0 4,44/=1 31,470=7 30,4 (= 1,0 (=4 31,470=7

1 43 >2A >2 7 >33 >2

34,434=/ 3,201=3 (,7AA=A 23,422=7 30,2A7=( 33,32(=2 23,422=7

7 A7 0 3/ >3 1 3/

3(,4((=4 3,0A =2 (,412=0 22,0 0=7 30,3(2=4 33,171= 22,0 0=7

7 >30 >( >3 7

#or +etter 'resentation se0ment assets in note 2 =3 for 2030 are sho%n %ith inter +usiness current account= "his 'resentation $oes not have any effect on +alance sheet or 'rofit an$ loss account

Mana0in0 the "reasury function offers $ynamic learnin0 o''ortunities= 6n 2033 6?m loo,in0 for%ar$ to lea$in0 ne% automation an$ 'rocess im'rovement 'ro9ects=
#5a5>ai/ 85an
"reasury Mana0er

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E =inancial 5ig5lig5ts E &'

!ur Directors

: E Eaffer C5air an 6$onB*!ecutive7

*''ointe$ to the &oar$ of 2irectors of 6C6 )a,istan 5imite$ in !cto+er 3A7 , Mahome$ Laffer is the lon0est servin0 mem+er of the &oar$ an$ is also the Chairman of the &oar$Fs *u$it Committee= He retire$ as a senior 'artner of M/s !rr 2i0nam & Co=, a lea$in0 cor'orate la% firm of )a,istan= S'eciali-in0 in ar+itration la%, Mahome$ Laffer has re'resente$ )a,istan as an alternate mem+er in the 6nternational Court of *r+itration of the 6nternational Cham+er of Commerce )aris since 3AA7= He is the )resi$ent of "he *0a @han Hos'ital an$ Me$ical Colle0e #oun$ation an$ a 2irector of )a,istan Centre for )hilanthro'y, "ourism )romotion Services ()a,istan) 5imite$ an$ 5a,son 6nvestment 5imite$= He is also Chairman of the *$visory Committee of )a,istan of the Center for 6nternational )rivate Enter'rise, an affiliate of the IS Cham+er of Commerce= He is also the mem+er of *$visory Committee for )a,istan of HS&C= He is visitin0 faculty for )a,istan 6nstitute of Cor'orate 8overnance an$ lectures e:tensively on Cor'orate 8overnance, Conciliation, *r+itration an$ relate$ su+9ects=

@a+ar A :aliC5ief *!ecutive

*''ointe$ as the Chief E:ecutive of 6C6 )a,istan 5imite$ on !cto+er 3, 200(, ;a<ar Mali, has over 2( years of e:tensive e:'erience %ith the 8rou' in senior mana0ement 'ositions= His other en0a0ements outsi$e 6C6 )a,istan 5imite$ areS 2irector on the Central &oar$ of the State &an, of )a,istan, 2irector )a,istan &usiness Council, non>e:ecutive 2irector on the &oar$s of En0ro )olymer & Chemicals 5imite$ an$ 686 6nsurance 5imite$= * former )resi$ent of !verseas 6nvestors Cham+er of Commerce & 6n$ustry (!6CC6), ;a<ar is also a mem+er of the &oar$ of 8overnors of 5IMS alon0 %ith +ein0 a trustee of 2u,e of E$in+ur0h?s *%ar$ #oun$ation= *n alumnus of Harvar$ &usiness School an$ 6.SE*2, ;a<ar is a Chartere$ *ccountant +y 'rofession an$ a #ello% of the 6nstitute of Chartere$ *ccountants in En0lan$ & ;ales=

: $awa> 2iwana Director 6$onB*!ecutive7

*''ointe$ to the &oar$ of 2irectors of 6C6 )a,istan 5imite$ in *'ril 3AA7, .a%a- is also the Chairman of the &oar$Fs 4emuneration Committee= He has hel$ various 'ositions such as Mana0in0 2irector, )a,istan 6nternational *irlines Cor'oration, Mana0in0 2irector )S5 an$ Chairman, )ort Uasim *uthority as %ell as Chairman, State Cement Cor'oration of )a,istan=
&4 E ,ur Directors E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Ali A Aga Director < 9ice President #oda As5 1usiness

*''ointe$ to the &oar$ of 2irectors of 6C6 )a,istan 5imite$ in Lanuary 200A, *li is Vice )resi$ent So$a *sh &usiness an$ has +een %ith 6C6 )a,istan for the last 22 years= He has $iverse e:'erience in commercial, human resources an$ 0eneral mana0ement roles= *li is also a .on>E:ecutive 2irector on the &oar$ of 6C6 )a,istan )o%er8en 5imite$=

=ero> )i>vi Director < C=,

*''ointe$ to the &oar$ of 2irectors of 6C6 )a,istan 5imite$ in !cto+er 200/, #ero- is the Chief #inancial !fficer an$ has +een %ith 6C6 )a,istan for over 27 years, $urin0 %hich he has hel$ various senior 'ositions= He is also a .on> E:ecutive 2irector of 6C6 )a,istan )o%er8en 5imite$ an$ #aysal *sset Mana0ement 5imite$=

:ueen Af>al Director 6$onB*!ecutive7

*''ointe$ to the &oar$ of 2irectors of 6C6 )a,istan 5imite$ in May 200 , he 9oine$ the Civil Service of )a,istan in 3A/4 an$ hel$ im'ortant 'ositions, inclu$in0 #inance Secretary for the 8overnment of )a,istan, Health Secretary, an$ Secretary 8eneral, #inance an$ Economic *ffairs from 3AAA to 2002= He %as a%ar$e$ Hilal>e> 6mita- for $istin0uishe$ 'u+lic service in 2002= Mueen is also the Chairman of )a,istan "o+acco Com'any 5imite$ an$ *-0ar$ .ine 5imite$= He is currently 2irector of Murree &re%ery Co= 5imite$ an$ the )a,istan )overty *lleviation #un$, an$ is on the &oar$ of 8overnors of *itchison Colle0e, 5ahore=

Ea es ) )ees Director 6$onB*!ecutive7

Electe$ to the &oar$ of 2irectors of 6C6 )a,istan 5imite$ in *'ril 2001, Lames is an e:'erience$ e:ecutive an$ is currently the 8eneral Mana0er of *,-o.o+elFs Car 4efinishes &usiness Init, a 0lo+al +usiness hea$<uartere$ in the .etherlan$s= He 9oine$ *,-o.o+el in 200 an$ %as 'reviously the 8eneral Mana0er of the *mericas Su+ &usiness Init Car 4efinishes at *,-o.o+el= Lames is also a 2irector of *,-o.o+el Come: S=*= $e C=V= an$ *nco Servicios )rofesionales S= *= $e C=V=

1art 8aster Director 6$onB*!ecutive7

Electe$ to the &oar$ of 2irectors of 6C6 )a,istan 5imite$ in *'ril 2001, &art has +een associate$ %ith the *,-o.o+el 8rou' since 3A10, $urin0 %hich he has hel$ senior 'ositions an$ various assi0nments in Euro'e an$ *sia= &art is also a 2irector of *,-o.o+el I@ 5imite$, *,-o.o+el 2ecorative Coatin0s 5imite$ an$ 6C6 5imite$=

Dere- @alter @elc5 Director 6$onB*!ecutive7

Electe$ to the &oar$ of 2irectors of 6C6 )a,istan 5imite$ in Lune 200A, 2ere, has +een associate$ %ith the *,-o.o+el 8rou' since 3AA1 $urin0 %hich he has hel$ senior 'ositions= He is currently 2irector &usiness 2evelo'ment at *,-o.o+el .=V= an$ Vice )resi$ent of *,-o.o+el Chan0 Chen0 (8uan0$on0) Co=, 5t$= He also hol$s $irectorshi's in a num+er of com'anies of the *,-o.o+el 8rou'=

)ogier :3 G3 )oelen Director 6$onB*!ecutive7

Electe$ to the &oar$ of 2irectors of 6C6 )a,istan 5imite$ in *u0ust 2030, 4o0ier has +een associate$ %ith the *,-o.o+el 8rou' since 2001 $urin0 %hich he has hel$ senior 'ositions= &efore 9oinin0 *,-o.o+el 4o0ier ha$ %or,e$ for various national an$ international clients=

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E ,ur Directors E &5

)eport of t5e Directors

for the year en$e$ 2ecem+er 3, 2030
"he 2irectors are 'lease$ to 'resent their re'ort to0ether %ith the au$ite$ financial statements of the Com'any for the year en$e$ 2ecem+er 3, 2030= ,verview .et Sales 6ncome (.S6) of your Com'any increase$ +y 24 'ercent over last year on the +ac, of hi0her sale volumes as %ell as sellin0 'rices= "his to0ether %ith stron0 mar0in mana0ement an$ 0oo$ cost control resulte$ in o'eratin0 'rofit increasin0 +y 2 'ercent over last year $es'ite a very $ifficult o'eratin0 environment= )rofit after ta: at 4s 2=4 +illion %as 3A 'ercent hi0her com'are$ %ith 200A= Earnin0s )er Share at 4s 37=(0 %as also hi0her +y 3A 'ercent= !n 0rou' +asis (inclu$in0 the result of %holly o%ne$ su+si$iary 6C6 )a,istan )o%er8en 5imite$) 'rofit after ta: for the year at 4s 2=41 +illion %as 23 'ercent hi0her com'are$ %ith 200A= #i! years financial perfor ance at a glance
$et sales( co ission and toll inco e

=inancial Perfor ance 2030 4s Million "urnover .et Sales 6ncome 8ross )rofit !'eratin0 4esult )rofit &efore "a: )rofit *fter "a: Earnin0s )er Share (4s) 200A 6ncrease )ercenta0e 22 24 31 2 23 3A 3A

A,( (,3 0 /,/1/ ,73 ,7 2 2,42A 37=(0

2, AA 21,4 0 (,/7/ ,021 ,07 2,04( 34=7

9alue of addition and its distri/ution

4a% material & services

8overnment e:che<uer & $uties 2ivi$en$s

Em'loyee remuneration & +enefits !'eratin0 & other e:'enses

)rofit retaine$

&6 E )eport of t5e Directors E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

E:clu$in0 $iscontinue$ @ansai +usiness from 200( > 2007 an$ reco0nition of $eferre$ ta: cre$it in 200(

2irectors? visit to our )olyester 'lant

5ife Sciences Me$ical Cam' for floo$ victims

4elief 0oo$s +ein0 $elivere$ to the )a,istan .avy for $is'atch to the floo$ victims

Dividends 6n vie% of the Com'anyFs healthy cash 'osition, the &oar$ has $eci$e$ to 'ay out the )rofit after "a: for the year 2030 as total $ivi$en$ for the year 2030= *ccor$in0ly, your 2irectors are 'lease$ to announce a final $ivi$en$ of 320 'ercent i=e=, 4s 32 'er share of 4s= 30 each of the issue$ an$ 'ai$ u' ca'ital of 4s= 3, 11,02 ,000/> su+9ect to the a''roval of the sharehol$ers at the forthcomin0 *nnual 8eneral Meetin0= "his, inclu$in0 the alrea$y 'ai$ interim $ivi$en$ of 4s= (=(0 'er share ma,es a total $ivi$en$ of 4s= 37=(0 'er share= 1oard c5anges Mr "ari< 6<+al @han resi0ne$ from the &oar$ %ith effect from Luly 3A, 2030= "o fill this casual vacancy, the 2irectors a''ointe$ Mr 4o0ier 4oelen, %ith effect from *u0ust 3 , 2030 for the remain$er of the term to e:'ire on *'ril 21, 2033= "he &oar$ 'laces on recor$ its a''reciation for the valua+le contri+ution ma$e +y the out0oin0 2irector, Mr "ari< 6<+al @han an$ %elcomes Mr 4o0ier 4oelen as a ne% 2irector of the Com'any= Fealt5( #afety and *nviron ent 6F#*7 "here %as no re'orta+le occu'ational illness to our em'loyees or su'ervise$ contractors in 2030= 2urin0 the year, t%o minor in9uries %ere re'orte$ +y )aints site involvin0 su'ervise$ contractors %ho resume$ their 9o+s after treatment= "he Safety 'erformance at other sites remaine$ %ell controlle$= So$a *sh achieve$ 2 =4 million man hours, )olyester achieve$ 3A=A million man hours, S'ecialty Chemicals achieve$ (=4 millions man hours an$ 5ife Sciences achieve$ 7= million man hours %ithout 5"6 (lost time in9ury) to Em'loyees an$ Su'ervise$ Contractors= 6m'lementation of *sset 6nte0rity 'lans an$ launch of &ehaviour &ase$ Safety $urin0 the year further aim to im'rove our Health an$ Safety )erformance movin0 for%ar$= Ener0y consum'tion an$ C!2 emissions %ere lo%er +y (= 'ercent an$ 'ercent res'ectively on li,e to li,e +asis com'are$ %ith 200A= .ota+le ener0y conservation initiatives inclu$e$ the 4everse !smosis ;ater )lant at So$a *sh +rou0ht on line in U4 2030= * $etaile$ re'ort on HSE 'erformance an$ $evelo'ment in 2030 is availa+le on 'a0e 40 of the annual re'ort= Corporate social responsi/ilityBC#) Mour Com'any?s community social an$ other charita+le activities are mana0e$ throu0h the 6C6 )a,istan #oun$ation %hich is o'erate$ +y its o%n &oar$ of "rustees= 6n a$$ition certain other community activities are carrie$ out $irectly +y your Com'any= "he foun$ation focuses on community $evelo'ment throu0h investment in e$ucation, health, environment an$ infrastructural $evelo'ment alon0 %ith

$isaster relief= 6n 2030, a total of 4s 42=( million %as s'ent on community activities (inclusive of contri+ution +y 'arent Com'any, staff an$ other relate$ concerns for floo$ relief)= *ducationG 6n the s'here of e$ucation the foun$ation ma$e si0nificant infrastructural investments in the 8overnment 8irls School in &arar,ot @ashmir, 8overnment )rimary School in "i++i Haria Shei,hu'ura an$ the @a,a'ir 8overnment &oys School in @arachi to im'rove an$ u'0ra$e them= *ll these schools are su''orte$ +y the foun$ation= ;e also com'lete$ t%enty years of continue$ su''ort to the 6nstitute of &ehavioral )sycholo0y (6&)), an institute for chil$ren %ith s'ecial nee$s= Fealt5; Since 3AA3, your Com'any has con$ucte$ Sur0ical Eye Clinic 'ro0rams at @he%ra in colla+oration %ith the 5ayton 4ahmatulla &enevolent "rust (54&")= "ill en$ 2030, 33/,A11 out'atients have +een treate$ an$ 33,AA2 ma9or an$ minor sur0eries con$ucte$ at the ;innin0ton Hos'ital, run an$ mana0e$ +y your Com'any= * similar 'ro0ram %as initiate$ near our )olyester 'lant in Shei,hu'ura %ith the first eye cam' +ein0 hel$ in .ovem+er 2030 treatin0 nearly 200 'atients= *nviron ent; Su''ort for ?Save the "urtle )ro9ect? in colla+oration %ith ;;# )a,istan continues= "his is our si:th year su''ortin0 this 'ro9ect= *fter our en0a0ement, there is a si0nificant increase in hatchlin0 release from 2,204 to over (,000 every season= &each cleanin0 activity is a 'art of the 'ro9ect an$ this year alon0 %ith our volunteers %e also involve$ stu$ents of the area= Disaster relief; 6n 2030 the country face$ its %orst natural $isaster %hich left over 20 million 'eo'le ro++e$ of their homes an$ livelihoo$= "o assist the affectees, 6C6 )a,istan #oun$ation launche$ a 'an>)a,istan #loo$ 4elief Cam'ai0n 2030= !ne million meals in the form of essential rations alon0 %ith 30,000 care 'ac,s containin0 imme$iate sustenance items an$ clean $rin,in0 %ater 'ac,e$ an$ 're'are$ +y the em'loyees %ere also $istri+ute$ in the floo$ affecte$ areas= !ther than this, free me$ical an$ veterinary cam's %ere set u' across the country +y the 5ife Sciences +usiness= "he foun$ation is no% actively involve$ in the reha+ilitation efforts an$ is hel'in0 +uil$ homes for floo$ affectees= "he total contri+ution to%ar$s floo$ relief activities %as over 4s / million (inclusive of fun$s contri+ute$ +y 'arent Com'any $irectly to the 6C6 )a,istan #oun$ation, contri+utions +y staff an$ other sta,ehol$ers)=
6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E )eport of t5e Directors E &.

9olunteering; Mour Com'any 0reatly encoura0es its em'loyees to 'artici'ate in community activities= 6n 2030 a total of nearly 4(00 man hours %ere s'ent volunteerin0= * $etaile$ re'ort on CS4 'erformance in 2030 is availa+le on 'a0e / of the annual re'ort= Fu an )esource 6n line %ith our am+ition to +e reco0ni-e$ as a Com'any %hich offers o''ortunity to its 'eo'le for on0oin0 learnin0, $evelo'ment an$ 0ro%th, talent movement across +usinesses an$ functions remaine$ a strate0ic 'riority for your Com'any= 6n a$$ition, your Com'any im'arte$ 27,A12 man hours of trainin0 in 2030 com'are$ to 20,A10 hours in 200A, focusin0 on im'rovin0 mana0erial, 'ersonal an$ functional effectiveness= 5earnin0 o''ortunities for mana0ers %as also 'rovi$e$ throu0h *,-o.o+elFs 0lo+al strate0ic assi0nments an$ lea$ershi' $evelo'ment 'ro0rams= 6n 2030 your Com'any con$ucte$ the 8allu' Vie%'oint en0a0ement survey %ith the aim of +enchmar,in0 an$ 'rovi$in0 mana0ers a hi0h 'erformance %or, environment fosterin0 talent en0a0ement an$ $evelo'ment= "he )erformance an$ 2evelo'ment 2ialo0 mi$ an$ year en$ assessment 'rocesses %as conclu$e$ as 'er timeline an$ com'any 0ui$elines ensurin0 the em'loyees continue to +enefit from clear an$ cre$i+le systems= * $etaile$ re'ort on human resource 'erformance an$ $evelo'ment in 2030 is availa+le on 'a0e 42 of the annual re'ort= )is- :anage ent =ra ewor"he &oar$ has an overall res'onsi+ility for ensurin0 that an effective ris, mana0ement 'rocess is in 'lace= "his encom'asses i$entification an$ 'rioriti-ation of strate0ic, financial, o'erational, le0al & e:ternal ris,s an$ ensurin0 a''ro'riate controls to miti0ate these ris,s= * $etaile$ re'ort on ris, mana0ement 'hiloso'hy, ,ey ris,s an$ tools use$ +y the Com'any is availa+le on 'a0e 3 of the annual re'ort=

Polyester #taple =i/er 6P#=7 )rices for )"* an$ ME8 continue$ to rise throu0hout the year $ue to hi0her cru$e oil 'rices, s'eculative tra$in0 an$ concerns over su''lies in the re0ional mar,et= * si0nificantly lo%er cotton cro' in China, )a,istan an$ to some e:tent in the IS* alon0 %ith 'ic,>u' in 0lo+al economic activity has su+stantially influence$ the $eman$ for 'olyester= Hi0her usa0e of 'olyester resulte$ in un'rece$ente$ increase in )S# $eman$ an$ 'rices= "he 0lo+al cotton 'rices rose to an all time hi0h of 3(A cents/l+= "he $omestic cotton 'rices follo%e$ the international lea$ an$ rose to a recor$ hi0h of 4s 30,(00 'er maun$= Earlier in the year, the $ecision of .ational "ariff Commission (."C)

im'osin0 anti>$um'in0 $uty on )S# from re0ional 'layers ha$ +een set asi$e +y the Hi0h Court on technical 0roun$s= ."C has move$ to remove these technical issues, ho%ever *)"M* has challen0e$ the metho$olo0y utilise$ +y the ."C an$ secure$ a stay from the Hi0h Court %hich is +ein0 challen0e$ +y the ."C=

&8 E )eport of t5e Directors E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

5on0 Service *%ar$ ceremonies %ere cele+rate$ across the com'any

*$vance$ Mana0ement )ro0ram for senior mana0ers

*n aerial vie% of our )olyester 'lant

!ur So$a *sh 'lant at ni0ht

Sales volume for the year %as ( 'ercent hi0her com'are$ to last year at a recor$ 32A,7 / tonnes on the +ac, of a +uoyant mar,et= "o cater for the hi0h $eman$ the 'lant %as run at full ca'acity throu0hout the year= Hi0her volumes an$ +etter 0ross 'rofit mar0ins resulte$ in the hi0hest ever o'eratin0 result of 4s 2,022=3 million, 1/ 'ercent hi0her com'are$ to 200A= 8oin0 for%ar$, in the short term, re0ional fee$stoc, 'rices are forecast to remain firm $ue to ti0htness in )"* an$ ME8 su''lies= 2omestic fi+er $eman$ is e:'ecte$ to stay sta+le in the near term, thou0h later in the year an e:'ecte$ 0oo$ 0lo+al cotton harvest %ill 'ut 'ressure on )S# 'rices an$ mar0ins= #oda As5 8lo+al so$a ash $eman$ %itnesse$ some recovery in 2030 +ase$ on hi0her consum'tion in the emer0in0 mar,ets of China, 6n$ia an$ &ra-il $urin0 the first three <uarters of the year= 4esultantly, the full year mar,et 0ro%th remaine$ at a+out 4>( 'ercent=

2omestic so$a ash mar,et remaine$ su+$ue$ as $o%nstream in$ustrial activity %as severely affecte$ +y the un'rece$ente$ 0as curtailments in 2030 %hich 'ersiste$ throu0hout the year, unli,e 'revious years %hen curtailment %as restricte$ to %inter months only= "he overall 0as su''ly %as at an avera0e 2( 'ercent lo%er than last year causin0 ma9or $isru'tions across all in$ustries= "he $omestic so$a ash mar,et thus continues to remain in an over su''ly situation $ue to lo%er off ta,e +y the $o%nstream in$ustry= "his is further a00ravate$ +y $um'in0 of so$a ash into )a,istan, %hich is a$versely affectin0 the $omestic in$ustry= *ll ma9or in$ustrial consumers of so$a ash, s'ecially 8lass, Silicate an$ )a'er in$ustries %ere affecte$, lea$in0 to a $ecline in their consum'tion of so$a ash= Ho%ever, the ne0ative im'act of lo%er consum'tion +y in$ustrial se0ment %as some%hat miti0ate$ +y 0ro%th in the +a-aar se0ment, %hich +enefitte$ from 0ro%th in the unor0ani-e$ $eter0ent sector= !verall, sales volume $urin0 the year %as hi0her +y 32 'ercent com'are$ to 200A, 'rimarily on the +ac, of e:'orts to various countries in the re0ion as the +usiness successfully esta+lishe$ itself in the e:'ort mar,et= &usiness o'erations remaine$ severely affecte$ as the full time e<uivalent 0as outa0es increase$ from /0 $ays in 200A to 34 $ays in 2030= &usiness ha$ to incur an a$$itional cost of over 4s (00 million on alternate fuels com'are$ to 200A= "he focus throu0hout the year %as on o'timi-in0 o'erational efficiencies an$ strict cost control in all areas= !'eratin0 result at 4s 1A(=0 million %as 34 'ercent lo%er than 200A as the im'act of hi0her revenue %as $ra00e$ $o%n +y the hi0her usa0e of more e:'ensive furnace oil $urin0 0as outa0es= Ministry of Commerce an$ 6n$ustry, 8overnment of 6n$ia has initiate$ anti>$um'in0 investi0ations a0ainst e:'orters of so$a ash from IS*, EI, China, @enya, I,raine, 6ran an$ )a,istan= Mour Com'any %as also serve$ a notice alon0 %ith other e:'orters un$er investi0ation an$ has 0iven a %ritten res'onse to the 6n$ian authority= 8oin0 for%ar$, 0as curtailments are e:'ecte$ to increase an$ %ill ,ee' the in$ustrial activity $e'resse$, im'actin0 so$a ash $eman$ in the country= 2um'in0 of so$a ash into )a,istan from certain countries also remains a ,ey concern an$ your Com'any has file$ an anti>$um'in0 a''lication %ith the .ational "ariff Commission, see,in0 an investi0ation into this 'ractice an$ initiation of investi0ation is e:'ecte$ in the near future=

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E )eport of t5e Directors E &0

Paints Sales volume %as u' +y 4 'ercent over last year in the 2ecorative se0ment $es'ite $ifficult mar,et con$itions $ue to the e:ten$e$ monsoon season an$ severe floo$s in U = "he $omestic construction sector %hich is the 'rimary $river for 0ro%th, is yet to return to its hi0h levels of 200/>2007= "he +ur$en of hi0h inflation an$ lo%er $is'osa+le income has also a$versely effecte$ the 'aintin0 maintenance cycle, e:ten$in0 it from a historical avera0e of years to ( years= Some $o%n>tra$in0 has also +een o+serve$, %ith consumers movin0 a%ay from the 'remium 'aints se0ment an$ +uyin0 lo%er 'rice$ 'aints=

2es'ite all the ne0ative in$icators the +usiness throu0h effective mar0in mana0ement successfully ,e't the unit mar0ins intact= Ho%ever a conservative 'olicy to%ar$s $e+torFs 'rovisionin0 %as a$o'te$ an$ one off 'rovision of 4s 301 million %as ta,en in vie% of the %orsenin0 economic con$itions 'articularly li<ui$ity crunch an$ hi0h interest rates= Conse<uently, the o'eratin0 result at 4s 3 = m %as 4A 'ercent lo%er com'are$ to 200A= E:clu$in0 the effect of the a+ove one>off 'rovision, o'eratin0 result %as lo%er +y 1 'ercent only= )erformance of the +usiness 0oin0 for%ar$ %oul$ +e hi0hly $e'en$ent on e:ternal factors such as the economic con$itions, revival of construction activities an$ the la% & or$er situation in the country= 4a'i$ increase in ra% material 'rices internationally is also e:'ecte$ to 'ut mar0ins un$er 'ressure= ?ife sciences )harmaceutical, *nimal Health an$ Ve0eta+le See$s se0ments 'oste$ $ou+le $i0it 0ro%th in sales offsettin0 %ea, 'erformance in the sunflo%er see$s se0ment= )ost floo$s an$ risin0 cotton 'rices consi$era+ly tilte$ farmers 'reference in favour of cotton com'are$ to sunflo%er= Sales in the )harmaceutical se0ment 0re% +y 33 'ercent over last year throu0h volume 0ro%th= *nimal Health an$

6n the in$ustrial se0ment, +usiness successfully esta+lishe$ itself in the !EM to' coats se0ment %ith +rea,throu0hs at ma9or car manufacturers= Si0nificant 'ro0ress %as ma$e in esta+lishin0 *,-o.o+el?s 'ro$uct 'ortfolio in the Marine an$ )rotective Coatin0s as %ell as )ac,a0in0 Coatin0s +usinesses= Ho%ever softenin0 of the economy an$ resultant lo%er #orei0n 2irect 6nvestment (#26) has consi$era+ly contracte$ the 'ro9ects +usiness 0enerally= 4efinish se0ment maintaine$ its focus on esta+lishin0 the 8rou' 'ro$ucts 'ortfolio= 2ynacoat, a ne% mi$>tier 'ro$uct intro$uce$ into the mar,et %as %ell recieve$ an$ has $emonstrate$ 0oo$ 'otential for 0ro%th= Ho%ever $ue to a shar' $ecline in mar,et li<ui$ity 0enerally an$ also $o%n> tra$in0 on account of hi0h inflation, 0ro%th in the refinish se0ment remaine$ 0enerally lo%=

Ve0eta+le See$s se0ment $emonstrate$ stron0 $ou+le $i0it 0ro%th in sales com'are$ to last year on the +ac, of +oth 'rice an$ volume in *nimal Health se0ment, %hereas, Ve0eta+le See$s se0ment 0ro%th %as $riven +y 'ro$uct e:'ansion an$ a00ressive mar,etin0= ;ith hi0hest ever .S6 at 4s ,7/3=( million, o'eratin0 result at 4s 4 1=1 million %as 4 'ercent hi0her com'are$ to last year=

%0 E )eport of t5e Directors E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

)an>)a,istan CE en0a0ement session

6C6 2ulu: color stu$io

!ur )harmaceuticals team at the launch of *my+act

C5e icals !'eratin0 result for the year at 4s 22 =4 million %as hi0her +y 'ercent com'are$ to last year on the +ac, of +etter 'rice mana0ement $es'ite $ecrease in sales volume +y / 'ercent mainly $ue to lo%er $eman$ on account of e:tensive 0as loa$ she$$in0 an$ im'act of floo$s in U 2030=

.et sales income %as hi0her +y 24 'ercent com'are$ to last year= 8ross 'rofit %as hi0her +y 31 'ercent on account of +etter volumes across all +usinesses an$ effective mar0in mana0ement= Sellin0 an$ $istri+ution e:'enses for the year %ere 34 'ercent hi0her 'rimarily on account of hi0her frei0ht e:'enses relatin0 to so$a ash e:'orts= ;ithout a$$itional frei0ht e:'enses, sellin0 an$ $istri+ution e:'enses %ere hi0her +y 7 'ercent= *$ministration an$ 0eneral e:'enses for the year %ere 30 'ercent hi0her than last year mainly $ue to one off 'rovision of 4s 301 million in )aints +usiness e:'laine$ earlier= E:clu$in0 this a$ministration an$ 0eneral e:'enses %ere hi0her +y 3 'ercent= #inancial char0es for the year %ere lo%er +y 2 'ercent= !ther o'eratin0 income %as hi0her +y / 'ercent $ue to increase in interest income on +an, $e'osits= Conse<uently, 'rofit after ta: amountin0 to 4s= 2,42A million %as 3A 'ercent hi0her com'are$ to last year= "he consoli$ate$ 'rofit after ta: amountin0 to 4s= 2,477 million %as also 23 'ercent hi0her com'are$ %ith last year= *s mentione$ in note 42 on 'a0e 33 the ta: $e'artment continues to issue %hat is +ein0 referre$ to as J'rotective assessmentK see,in0 to $isallo% una+sor+e$ $e'reciation relatin0 to )"* assets= "he Com'anyFs contention is that these are un%arrante$ actions an$ have file$ a''eals in Hi0h Court of Sin$h a0ainst this hi0hhan$e$ action of the $e'artment= Earnin0s 'er share at 4s 37=(0 for the year %as hi0her +y 3A 'ercent com'are$ to last year=

8oin0 for%ar$, 0as availa+ility is a ma9or cause of concern %ith the outa0e 0oin0 +eyon$ the e:'ecte$ levels a$versely affectin0 $eman$ from $o%nstream in$ustries= =inance "he Com'anyFs &alance Sheet mana0ement remaine$ stron0 %ith current ratio im'rovin0 to 2=2 (200AG3=A) an$ li<ui$ity ratio to 3=4 (200AG3= )

=uture outlooMacro economic outloo, is very challen0in0 an$ +usiness con$itions are e:'ecte$ to remain $ifficult= "he $e+ilitatin0 'o%er cuts an$ %i$enin0 0a' +et%een $eman$ an$ su''ly of 0as in the a+sence of a soun$ ener0y 'olicy an$ a$hoc allocation of 0as to the manufacturin0 units, has +a$ly affecte$ the in$ustrial sector of )a,istan= 6f the 0overnment $oes not move to a$$ress these issues it %ill $ama0e the in$ustrial sector of )a,istan %ith far reachin0 conse<uences=

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E )eport of t5e Directors E %&

;ith its $iverse 'ortfolio, stron0 mar,et 'ositions an$ e:cellent mana0ement your Com'any is %ell 'ositione$ to 0ro% if the e:ternal limitations mentione$ a+ove are mana0e$ +y the 8overnment of )a,istan= Mour Com'anyFs future 'erformance %ill +e influence$ +y the issue aroun$ ener0y su''lies an$ macro economic con$itions= Ac-nowledg ent "he results of your Com'any are a reflection of the commitment an$ contri+ution +y the stron0 'ool of talente$ em'loyees an$ the trust re'ose$ in the Com'any +y its customers, su''liers an$ service 'rovi$ers= Auditors "he 'resent au$itors @)M8 "aseer Ha$i & Co=, Chartere$ *ccountants retire an$ +ein0 eli0i+le, have offere$ themselves for rea''ointment %ith their 'artner in char0e of au$it Mr= *mir Lamil *++asi= Co pliance wit5 t5e code of corporate governance *s re<uire$ un$er the co$e of cor'orate 0overnance $ate$ March 21, 2002, the 2irectors are 'lease$ to state as follo%sG H "he financial statements 're'are$ +y the mana0ement of the Com'any 'resent fairly its state of affairs, the results of its o'erations, cash flo%s an$ chan0es in e<uity= H )ro'er +oo,s of accounts of the Com'any have +een maintaine$= H *''ro'riate accountin0 'olicies have +een consistently a''lie$ in 're'aration of financial statements an$ accountin0 estimates are +ase$ on reasona+le an$ 'ru$ent 9u$0ment= H 6nternational *ccountin0 Stan$ar$s, as a''lica+le in )a,istan, have +een follo%e$ in 're'aration of financial statements= H "he system of internal control is soun$ in $esi0n an$ has +een effectively im'lemente$ an$ monitore$= H "here are no $ou+ts u'on the Com'anyFs a+ility to continue as a 0oin0 concern= H "here has +een no material $e'arture from the +est 'ractices of cor'orate 0overnance as $etaile$ in the 5istin0 4e0ulations= H @ey o'eratin0 an$ financial $ata for the last 30 years is summari-e$ on 'a0e 32 H !utstan$in0 ta:es an$ levies are 0iven in the .otes to the #inancial Statements= H "he mana0ement of the Com'any is committe$ to 0oo$ cor'orate 0overnance, an$ a''ro'riate ste's are ta,en to com'ly %ith +est 'ractices=

"nvest ent in retire ent /enefits "he value of investments, ma$e +y the staff retirement fun$s o'erate$ +y the trustees of the fun$s as 'er their res'ective au$ite$ financial statements for the year en$e$ 2ecem+er 3, 200A, are as follo%sG Value (4s P000) //2,0// 2A,220 3,041,477 2(A,/20 404,731

3= 6C6 )a,istan Mana0ement Staff )rovi$ent #un$ 2= 6C6 )a,istan Mana0ement Staff 8ratuity #un$ = 6C6 )a,istan Mana0ement Staff )ension #un$ 4= 6C6 )a,istan Mana0ement Staff 2efine$ Contri+ution Su'erannuation #un$ (= 6C6 )a,istan .on>Mana0ement Staff )rovi$ent #un$

Attendance 2urin0 the year, 4 (four) &oar$ of 2irectors, ( (five) *u$it Committee an$ 3 (one) 4emuneration Committee meetin0s %ere hel$= *tten$ance +y each 2irector/C#!/Com'any Secretary/Secretary *u$it Committee %as as follo%s= .ame of 2irector &oar$ of 2irectors *tten$ance 4 4 *u$it Committee *tten$ance ( > 4 > > > > 4 ( > > > 4
%=e=f=, *u0ust 3 , 2030

4emuneration Committee *tten$ance > > > 3 > > > > > 3 > > >

3 2= = 4= (= /= 7= 1= A= 30= 33= 32=

Mr= M L Laffer Mr= ;a<ar * Mali, Mr= Mueen *f-al Mr= .a%a- "i%ana Mr= *li * *0a Mr= 2ere, ; ;elch Mr= "ari< 6<+al @han3 Mr= #ero- 4i-vi Mr= &art @aster Mr= Lames 4 4ees Mr= 4o0ier M 8 4oelen2 Ms= Saira .ishtar (Com'any Secretary) 3 = Mr Via I Sye$ (Secretary *u$it Committee)
3 4esi0ne$

4 >

3 4 >
2 *''ointe$

%=e=f=, Luly 3A, 2030

5eave of a+sence %as 0rante$ to 2irectors %ho coul$ not atten$ some of the &oar$ meetin0s

%% E )eport of t5e Directors E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Pattern of s5are5olding * statement sho%in0 the 'attern of sharehol$in0 in the Com'any alon0 %ith a$$itional information as at 2ecem+er 3, 2030 a''ears on 'a0e num+ers 320 to 32 = 6C6 !micron &=V= (an *,-o.o+el 0rou' com'any) continues to hol$ 7(=13C shares, %hile 6nstitutions hel$ 30=2 C an$ in$ivi$uals an$ others hel$ the +alance 3 =A/ C= "he hi0hest an$ the lo%est mar,et 'rices $urin0 2030 %ere 4s 3A0=40 an$ 4s 30A=(0 'er share res'ectively= "he 2irectors, CE!, Com'any Secretary an$ their s'ouses an$ minor chil$ren $i$ not carry out any transaction in the shares of the Com'any $urin0 the year e:ce't for Mr= #ero4i-vi, C#! an$ a 2irector of the Com'any %ho 'urchase$ 3(,000 shares of the Com'any in *u0ust 2030= "his %as $uly re'orte$ to the 2irectors an$ the relevant statutory returns %ere also file$= Group financial state ents "he au$ite$ financial statements of the 6C6 8rou' for the year en$e$ 2ecem+er 3, 2030 are attache$= "he 6C6 )a,istan 8rou' com'rises of 6C6 )a,istan 5imite$ an$ 6C6 )a,istan )o%er8en 5imite$, a %holly o%ne$ su+si$iary=

Em'loyees si0nin0 the Safety 2ay 'le$0e +anner

: E Eaffer Chairman @arachi #e+ruary 3/, 2033

@a+ar A :aliChief E:ecutive

!ur veterinary cam' $urin0 the floo$ relief cam'ai0n

Stu$ents atten$in0 a class at the 8overnement &oys/8irls )rimary School, @a,a'ir

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E )eport of t5e Directors E %'

#tate ent of Co pliance

%ith the Co$e of Cor'orate 8overnance for the year en$e$ 2ecem+er 3, 2030

"his statement is +ein0 'resente$ to com'ly %ith the Co$e of Cor'orate 8overnance containe$ in the listin0 re0ulations of the stoc, e:chan0es for the 'ur'ose of esta+lishin0 a frame%or, of 0oo$ 0overnance, %here+y a liste$ com'any is mana0e$ in com'liance %ith the +est 'ractices of cor'orate 0overnance= "he Com'any has a''lie$ the 'rinci'les containe$ in the Co$e in the follo%in0 mannerG 3= "he Com'any encoura0es re'resentation of in$e'en$ent, non> e:ecutive $irectors an$ $irectors re'resentin0 minority interests on its &oar$ of 2irectors= *t 'resent the &oar$ inclu$es seven non>e:ecutive $irectors an$ three e:ecutive $irectors= 2= "he $irectors voluntarily confirme$ that none of them is servin0 as a $irector in more than ten liste$ com'anies, inclu$in0 6C6 )a,istan 5imite$= = "he 2irectors have voluntarily $eclare$ that all the resi$ent $irectors of the Com'any are re0istere$ ta:'ayers an$ none of them has $efaulte$ in 'ayment of any loan to a +an,in0 com'any, a 2#6 or an .&#6= .one of the $irectors is a mem+er of a stoc, e:chan0e= 4= !ne casual vacancy occurre$ in the &oar$ on Luly 3A, 2030 %hich %as fille$ u' on *u0ust 3 , 2030= (= "he &oar$ of 2irectors of the Com'any, in its meetin0 hel$ on #e+ruary 2 , 2003, a$o'te$ a Statement of Ethics an$ &usiness )ractices= "his statement un$er its title P"he ;ay ;e 2o "hin0s *roun$ HereF an$ then P6C6 ;ayF ha$ +een re0ularly circulate$ %ithin the Com'any since 2003= !n !cto+er 2 , 2001, the 2irectors a$o'te$ a ne% Co$e of Con$uct %hich %as circulate$ amon0 all em'loyees of the Com'any= "rainin0 sessions %ere hel$ at various locations in or$er to a''rise all em'loyees a+out the revise$ Co$e of Con$uct= 6n 2030, the em'loyees an$ the $irectors of the Com'any si0ne$ a statement on the Co$e of Con$uct reaffirmin0 their 'le$0e that they are a%are of the Co$e an$ a+i$e +y it at all times= /= "he &oar$ of 2irectors at its meetin0 hel$ on #e+ruary 2(, 200( a''rove$ an$ a$o'te$ a mission statement %hich has +een circulate$ to the em'loyees of the Com'any= * se'arate vision statement un$er the title of P6C6 )a,istan > !ur *m+itionF %as a''rove$ +y the &oar$ on #e+ruary 31, 2030= "he &oar$ of 2irectors has also a''rove$ an$ a$o'te$ a cor'orate strate0y for the Com'any an$ si0nificant 'olicies= "he cor'orate strate0y is revie%e$ +y the &oar$ from time to time as a''ro'riate= 7= *ll the 'o%ers of the &oar$ have +een $uly e:ercise$ an$ $ecisions on material transactions, inclu$in0 a''ointment an$ $etermination of remuneration an$ terms an$ con$itions of em'loyment of the CE! an$ other E:ecutive 2irectors, have +een ta,en +y the &oar$=

1= 2urin0 the year four re0ular meetin0s of the &oar$ %ere hel$ %hich %ere all 'resi$e$ over +y the Chairman= ;ritten notices of the re0ular &oar$ Meetin0s, alon0 %ith a0en$a an$ %or,in0 'a'ers, %ere circulate$ at least seven $ays +efore the meetin0s= "he minutes of all four meetin0s %ere a''ro'riately recor$e$ an$ circulate$ in time= A= "he 2irectors have +een 'rovi$e$ %ith co'ies of the 5istin0 4e0ulations of the Stoc, E:chan0e, the Com'anyFs Memoran$um an$ *rticles of *ssociation an$ the Co$e of Cor'orate 8overnance= !rientation courses, +oth in>house an$ e:ternal, %ere also arran0e$ for the &oar$ in 200 & 200/= &esi$es a com'rehensive 'a'er on P4oles an$ 4es'onsi+ilities of 2irectorsF %as also circulate$ to the $irectors for their 'erusal in .ovem+er 200/= 6n *'ril 2001, another +oo,let title$, J* Han$+oo, of 2irectorsK %as circulate$ amon0st the 2irectors= * 'resentation on cor'orate 0overnance an$ the roles an$ res'onsi+ilities of $irectors %as arran0e$ for the ne% 2irector, Mr 4o0ier 4oelen in 2030= "he $irectors are, therefore, %ell conversant %ith their $uties an$ res'onsi+ilities= 30= .o ne% a''ointment of C#! or Hea$ of 6nternal *u$it has +een ma$e $urin0 the year= .e% Com'any Secretary, Ms Saira .ishtar %as a''ointe$ +y the &oar$ on #e+ruary 3, 2030= 33= "he 4e'ort of the 2irectors for the year en$e$ 2ecem+er 3, 2030 has +een 're'are$ in com'liance %ith the re<uirements of the Co$e an$ fully $escri+es the salient matters re<uire$ to +e $isclose$= 32= "he financial statements of the Com'any %ere $uly en$orse$ +y the CE! an$ C#! +efore a''roval of the &oar$= "he 2n$ <uarterly an$ annual accounts %ere also initiale$ +y the e:ternal au$itors +efore 'resentation to the &oar$= 3 = "he Com'any maintains a list of relate$ 'arties %hich is u'$ate$ on a re0ular +asis= *ll transactions %ith relate$ 'arties are 'lace$ +efore the *u$it Committee on a <uarterly +asis an$ a''rove$ +y the &oar$ alon0 %ith the metho$s for 'ricin0= 34= "he 2irectors, CE! an$ e:ecutives $o not hol$ any interest in the shares of the Com'any other than that $isclose$ in the 'attern of sharehol$in0= 3(= "he Com'any has com'lie$ %ith all the cor'orate an$ financial re'ortin0 re<uirements of the Co$e= 3/= "he *u$it Su+ Committee of the &oar$ has +een in e:istence since 3AA2= 6t com'rises three mem+ers, all of %hom are non>e:ecutive $irectors inclu$in0 the chairman of the committee= 6C6 )a,istan also has a 4emuneration Committee com'risin0 t%o non>e:ecutive 2irectors, %hich has also +een in o'eration since 3AA7=

%4 E #tate ent of Co pliance E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

)eview report
to the mem+ers on statement of com'liance %ith +est 'ractices of co$e of cor'orate 0overnance
37= "here have +een five *u$it Committee meetin0s $urin0 the year un$er revie%= "he 2irectors have a''rove$ the revise$ terms of reference of the *u$it Committee in li0ht of the Co$e of Cor'orate 8overnance= 31= 6C6 )a,istan has an effective internal au$it function in 'lace= "he &oar$ has outsource$ the internal au$it function to M/s #or$ 4ho$es Si$at Hy$er & Co= Chartere$ *ccountants, %ho are consi$ere$ suita+ly <ualifie$ an$ e:'erience$ for the 'ur'ose an$ are conversant %ith the 'olicies an$ 'roce$ures of the Com'any= "hey are involve$ in the internal au$it function on a full time +asis= 3A= "he statutory au$itors of the Com'any have confirme$ that they have +een 0iven a satisfactory ratin0 un$er the <uality control revie% 'ro0ramme of the 6nstitute of Chartere$ *ccountants of )a,istan, that they or any of the 'artners of the firm, their s'ouses an$ minor chil$ren $o not hol$ shares of the Com'any an$ that the firm an$ all its 'artners are in com'liance %ith 6nternational #e$eration of *ccountants (6#*C) 0ui$elines on Co$e of Ethics as a$o'te$ +y 6nstitute of Chartere$ *ccountants of )a,istan= 20= "he statutory au$itors or the 'ersons associate$ %ith them have not +een a''ointe$ to 'rovi$e other services e:ce't in accor$ance %ith the listin0 re0ulations an$ the au$itors have confirme$ that they have o+serve$ 6#*C 0ui$elines in this re0ar$= 23= ;e confirm that all other material 'rinci'les containe$ in the Co$e have +een com'lie$ %ith= ;e have revie%e$ the Statement of Com'liance %ith the +est 'ractices containe$ in the Co$e of Cor'orate 8overnance 're'are$ +y the &oar$ of 2irectors of 6C6 )a,istan 5imite$ to com'ly %ith the listin0 re0ulations of the res'ective Stoc, E:chan0es, %here the Com'any is liste$= "he res'onsi+ility for com'liance %ith the Co$e of Cor'orate 8overnance is that of the &oar$ of 2irectors of the Com'any= !ur res'onsi+ility is to revie%, to the e:tent %here such com'liance can +e o+9ectively verifie$, %hether the Statement of Com'liance reflects the status of the Com'anyFs com'liance %ith the 'rovisions of the Co$e of Cor'orate 8overnance an$ re'ort if it $oes not= * revie% is limite$ 'rimarily to in<uiries of the Com'any 'ersonnel an$ revie% of various $ocuments 're'are$ +y the Com'any to com'ly %ith the Co$e= *s 'art of our au$it of financial statements %e are re<uire$ to o+tain an un$erstan$in0 of the accountin0 an$ internal control systems sufficient to 'lan the au$it an$ $evelo' an effective au$it a''roach= ;e have not carrie$ out any s'ecial revie% of the internal control system to ena+le us to e:'ress an o'inion as to %hether the &oar$Fs statement on internal control covers all controls an$ the effectiveness of such internal controls= #urther su+>re0ulation (:iii) of 5istin0 4e0ulations ( ('reviously 4e0ulation .o= 7) notifie$ +y the @arachi Stoc, E:chan0e (8uarantee) 5imite$ vi$e circular no= @SE/.>2/A $ate$ Lanuary 3A, 200A re<uires the Com'any to 'lace +efore the &oar$ of 2irectors for their consi$eration an$ a''roval relate$ 'arty transactions $istin0uishin0 +et%een transactions carrie$ out on terms e<uivalent to those that 'revail in armFs len0th transactions an$ transactions %hich are not e:ecute$ at armFs len0th 'rice recor$in0 'ro'er 9ustification for usin0 such alternate 'ricin0 mechanism= #urther, all such transactions are also re<uire$ to +e se'arately 'lace$ +efore the au$it committee= ;e are only re<uire$ an$ have ensure$ com'liance of re<uirement to the e:tent of a''roval of relate$ 'arty transactions +y the +oar$ of $irectors an$ 'lacement of such transactions +efore the au$it committee= ;e have not carrie$ out any 'roce$ures to $etermine %hether the relate$ 'arty transactions %ere un$erta,en at armFs len0th 'rice or not= &ase$ on our revie%, nothin0 has come to our attention %hich causes us to +elieve that the Statement of Com'liance $oes not a''ro'riately reflect the Com'anyFs com'liance, in all material res'ects, %ith the +est 'ractices containe$ in the Co$e of Cor'orate 8overnance as a''lica+le to the Com'any for the year en$e$ 3 2ecem+er 2030=

: E Eaffer Chairman @arachi #e+ruary 3/, 2033

@a+ar A :aliChief E:ecutive

#e+ruary 3/, 2033 @arachi

@)M8 "aseer Ha$i & Co= Chartere$ *ccountants

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E )eview report E %5

Mana0ement co ittees
E:ecutive Mana0ement "eam

&

'

*!ecutive anage ent co ittee "he CE is the Chairman of the E:ecutive mana0ement committee= "he committee com'rises the Chief #inancial !fficer, &usiness Vice )resi$ents, an$ Hea$ of Human 4esources= "his committee meets once a month un$er the chairmanshi' of the Chief E:ecutive an$ is res'onsi+le for strate0ic +usiness 'lannin0, $ecision ma,in0 an$ overall mana0ement of the Com'any= F#* anage ent co ittee "he Health, Safety & Environment committee, chaire$ +y the CE, 'erio$ically revie%s an$ monitors com'any>%i$e 'ractices= 6t oversees the health, safety & environment functions of our com'any an$ is also res'onsi+le for ensurin0 that all our o'erations are environment>frien$ly an$ com'liant %ith re0ulatory an$ *,-o.o+el frame%or,=

#uccession planning foru "his forum is chaire$ +y the CE an$ meets annually to revie% the com'anyFs succession 'lannin0 an$ talent 'i'eline at all levels= "his forum is su''orte$ +y the follo%in0 ca'a+ility 0rou'sG H Commercial Ca'a+ility 8rou' H "echnical Ca'a+ility 8rou' H #inance, 6", 5e0al & *$ministration Ca'a+ility 8rou' H H4 Ca'a+ility 8rou'

&

Ali A Aga

'

#u5ail A 85an

85alid Alvi

Vice )resi$ent, So$a *sh &usiness %

: Asif :ali-

Vice )resi$ent, )olyester &usiness 4

@a+ar A :ali-

Vice )resi$ent, Chemicals &usiness 6

=ero> )i>vi

Ee5an>e/ 85an

Vice )resi$ent, )aints &usiness

Vice )resi$ent, Cor'orate H4 & 5ife Sciences &usiness

%6 E :anage ent co

Chief E:ecutive

Chief #inancial !fficer

ittees E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

!r0ani-ational structure

Chief E:ecutive

Cor'orate "echnical

Cor'orate Communications

Chief #inancial !fficer

Human 4esources

So$a *sh &usiness

)olyester &usiness

)aints &usiness

5ife Sciences &usiness

Chemicals &usiness

#upply C5ain networChaire$ +y the Vice )resi$ent )aints &usiness, the Su''ly Chain .et%or, com'rises of Su''ly Chain mana0ers, an$ aims to im'rove 'rocurement an$ material han$lin0 effectiveness +y see,in0 an$ ca'itali-in0 of syner0istic o''ortunities an$ sharin0 of +est 'ractices= #ustaina/ility Council "he o+9ective of the Sustaina+ility Council is to im'lement a sustaina+le +usiness strate0y for the com'any an$ sta,ehol$ers= 6t com'rises of a multi>$isci'linary team re'resentin0 the follo%in0 se0ments of 6C6 )a,istan 5imite$=

H Com'liance an$ 4is, Mana0ement H Community investment H Manufacturin0 H HSE H H4 H !'erations H Su''ly Chain "he Council is formulate$ %ith the a0en$a of inclu$in0 sustaina+ility in all as'ects of our value chainS to $evelo' an$ retain lea$ershi' 'ositions in all sustaina+ility in$icators=

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E :anage ent co

ittees E %.

Cor'orate 8overnance an$ Co pliance

Ho% %e 0overn our affairs is %hat $ictates our lon0>term 'erformance= * trans'arent structure to monitor an$ re'ort our 'erformance is %hat 0overnance is all a+out= 6C6 )a,istanFs cor'orate 0overnance structure is +ase$ on the com'anyFs articles of association, statutory, re0ulatory an$ other com'liance re<uirements a''lica+le to com'anies liste$ on the stoc, e:chan0es, com'lemente$ +y several internal 'roce$ures= "hese 'roce$ures inclu$e a ris, mana0ement assesment an$ control system, as %ell as a system of assurances of com'liance %ith the a''lica+le la%s, re0ulations an$ com'any?s co$e of con$uct=
im'lementation of the aforesai$ 0oals an$ strate0ies in accor$ance %ith the 'olicies an$ 0ui$elines lai$ $o%n +y the &oar$ of 2irectors= 6n or$er to facilitate a smooth runnin0 of the $ay to $ay affairs of the Com'any, the &oar$ entrusts the Chief E:ecutive %ith necessary 'o%ers an$ res'onsi+ilities %ho in turn is assiste$ +y an E:ecutive Mana0ement "eam com'risin0 the Chief #inancial !fficer an$ the Hea$s of +usinesses an$ functions= "he &oar$ is also assiste$ +y a num+er of su+>committees com'risin0 mainly non>e:ecutive $irectors= 6C6 )a,istanFs cor'orate 0overnance structure is +ase$ on the re<uirements of the Com'anies !r$inance, 3A14, alon0%ith other circulars an$ 0ui$elines issue$ +y the Securities an$ E:chan0e Commission of )a,istan, listin0 4e0ulations of the three stoc, e:chan0es, the Co$e of Cor'orate 8overnance, the Com'anyFs *rticles of *ssociation an$ Com'any?s Co$e of Con$uct= 6C6 )a,istan 5imite$ has al%ays hel$ in hi0h esteem the +est 'ractices of cor'orate 0overnance an$ +elieves in %i$ely 'ro'a0atin0 the values an$ the ethics for strict a$herence +y all the em'loyees, contractors, su''liers an$ others %hile $oin0 +usiness for the Com'any= Even +efore the intro$uction of the re<uirement in the Co$e of Cor'orate 8overnance in 2002 (Pthe Co$eF), 6C6 )a,istan ha$ a Co$e of Con$uct %hich %as circulate$ to all the em'loyees for necessary com'liance= 6n or$er to a''rise the em'loyees of the Co$e of Con$uct, the Com'any or0ani-es trainin0 sessions an$ in$uction 'ro0rams on a re0ular +asis= &esi$es this, every em'loyee an$ $irector of the Com'any is re<uire$ to si0n, on an annual +asis, a statement to the effect that he or she un$erstan$s the Co$e of Con$uct an$ that he or she a+i$es +y it at all times %hile $oin0 +usiness for the Com'any= 6n or$er to facilitate strict a$herence to the Co$e of Con$uct, the em'loyees also have access to a PS'ea, I'F 'ro0ram %here+y any em'loyee can re'ort any unethical $ealin0 +y any Com'any em'loyee on a confi$ential +asis either throu0h tele'hone or e>mail= Com'lete anonymity of the 'erson usin0 this facility is assure$ an$ all com'laints are thorou0hly investi0ate$ either +y the Com'any internally or +y assi0nin0 it to the 6nternal *u$itors= 4esults of the investi0ation are communicate$ to the com'lainant= Corporate Governance #tate ent 6C6 )a,istan 5imite$ is a 'u+lic limite$ com'any esta+lishe$ un$er the la%s of )a,istan= "he shares of the Com'any are liste$ on the three stoc, e:chan0es of the country, the @arachi Stoc, E:chan0e (8) 5imite$, 5ahore Stoc, E:chan0e (8) 5imite$ an$ 6slama+a$ Stoc, E:chan0e (8) 5imite$= "he &oar$ of 2irectors is res'onsi+le for settin0 the 0oals, o+9ectives an$ strate0ies the Com'any has to a$o't an$ for formulatin0 the 'olicies an$ 0ui$elines to%ar$s achievin0 those 0oals an$ o+9ectives= "he &oar$ is accounta+le to the sharehol$ers for the $ischar0e of its fi$uciary function= "he mana0ement is res'onsi+le for carryin0 out the "he 'resent &oar$ of 6C6 )a,istan com'rises a %ell +alance$ mi: of e:ecutive an$ non>e:ecutive $irectors= 6t has ten $irectors %hich inclu$e three e:ecutive $irectors (inclu$in0 the Chief E:ecutive) an$ seven non>e:ecutive $irectors out of %hom three are in$e'en$ent $irectors an$ four re'resent the ma9ority sharehol$ers, 6C6 !micron &=V= "he Chairman of the &oar$ is a non>e:ecutive $irector= "hus the 'ositions of Chairman an$ Chief E:ecutive are hel$ +y se'arate in$ivi$uals %ith clearly $efine$ roles an$ res'onsi+ilities= 6C6 )a,istan has ha$ an *u$it Su+ Committee an$ a 4emuneration Su+ Committee of the &oar$ much +efore the intro$uction of the Co$e of Cor'orate 8overnance com'risin0 all non>e:ecutive $irectors inclu$in0

%8 E Corporate Governance and Co pliance E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

6 am 'rou$ to %or, for a com'any that is amon0 those lea$in0 the %ay for%ar$ in cor'orate 0overnance 'ractices in )a,istan=
#aira $is5tar
8eneral Counsel & Com'any Secretary

the Chairman= "he terms of reference of these Committees have +een 0iven else%here in this 4e'ort= 6C6 )a,istan 5imite$ has a soun$ system of internal control an$ ris, mana0ement= "he internal au$it function %hich is mainly res'onsi+le for internal control, has +een outsource$ to M/s Ernst & Moun0 #or$ 4ho$es Si$at Hy$er & Co= an$ re'orts $irectly to the Chairman of the *u$it Committee= *s a conse<uence of re0ular revie% over several years the com'any no% has an e:tremely ro+ust system of internal controls %hich %as further stren0thene$ in 200( %hen the Com'any ha$ to 0o throu0h a com'rehensive im'lementation of the Sar+anes an$ !:ley *ct (S!W) $ue to listin0 of its 'revious 'arent com'anyFs shares on the .e% Mor, Stoc, E:chan0e= *lthou0h this re<uirement is no lon0er a''lica+le to 6C6 )a,istan 5imite$ as a result of $elistin0 of its ultimate 'arent com'any from the .e% Mor, stoc, e:chan0e, the Com'any continue$ %ith the control measure then a$o'te$= "he Com'any has a strin0ent 'olicy on insi$er tra$in0 an$ securities transactions= "he 'olicy 'a'er %hich is circulate$ to all the em'loyees of the Com'any from time to time, $ivi$es the em'loyees in certain cate0ories on the +asis of their 'osition an$ involvement in $ay>to>$ay $ecision ma,in0 'rocess an$ access to 'rice sensitive information= Certain senior e:ecutives an$ the finance staff are cate0ori-e$ as P)ermanent 6nsi$ersF= ;hile PE:ecutivesF (as $efine$ in the Co$e of Cor'orate 8overnance) some of %hom may not +e P)ermanent 6nsi$ersF, can $eal in the Com'anyFs shares any time outsi$e the close$ 'erio$ announce$ +y the Com'any on the eve of the <uarterly &oar$ meetin0s, the P)ermanent 6nsi$ersF can $eal in the Com'anyFs shares only $urin0 the o'en 'erio$ s'ecifically announce$ +y the Com'any imme$iately after the <uarterly &oar$ meetin0s an$ the announcement of financial results= "his o'en 'erio$ $oes not e:cee$ 3( calen$ar $ays in each <uarter from the $ate of announcement of the financial results= *ll such transactions are re<uire$ to +e re'orte$ to the Com'any Secretary %ithin four $ays of e:ecution of the transaction %ith relevant $etails of 'urchase/ sale of shares= Co petition ?aw *s em+o$ie$ in our Co$e of Con$uct, 6C6 )a,istan su''orts the 'rinci'les of free enter'rise an$ fair com'etition= 6C6 )a,istan com'etes vi0orously +ut fairly %ith its com'etitors %ithin the frame%or, of a''lica+le la%s > all to 'rovi$e +etter an$ increasin0ly useful 'ro$ucts an$ more efficient services to our customers= "he 5e0al 2e'artment con$ucte$ Com'etition 5a% "rainin0 of 3(/ relevant em'loyees in 200A= *ll relevant em'loyees are re<uire$ to si0n an a$$itional $eclaration of com'liance %ith the Com'etition 5a%= ;e continue to re0ularly hol$ trainin0 sessions to ensure com'liance %ith com'etition la%s for relevant em'loyees=

Gnited $ations Glo/al Co pact 6G$GC7 6C6 )a,istan remains committe$ in ma,in0 the I.8CFs "en )rinci'les 'art of our strate0y, culture an$ $ay>to>$ay o'erations= "he "en )rinci'les form a set of core values in the areas of human ri0hts, la+or stan$ar$s, the environment an$ anti>corru'tion= Ade+uate Disclosure *t 6C6 )a,istan, it is our en$eavor to continue to +e trans'arent in all our $ealin0s, %ith all sta,ehol$ers= "his is achieve$ throu0h a$e<uate an$ com'rehensive $isclosure of all communications to our sharehol$ers an$ other sta,ehol$ers, inclu$in0 our financial statements= *ll critical accountin0 estimates, rules an$ 'roce$ures 0overnin0 e:traor$inary transactions, or any chan0es in accountin0 'olicies alon0 %ith their financial im'act, are $isclose$ in the notes to our financial statements= ;e follo% the Com'anies !r$inance an$ a''lica+le 6*S an$ 6#4S (thatFs 6nternational *ccountin0 Stan$ar$s an$ 6nternational #inancial 4e'ortin0 Stan$ar$s)= 6n a$$ition, %e en$eavor to 'rovi$e as much su''lementary information in the financial statements as 'ossi+le= Annual General :eeting "he com'any hol$s its annual 0eneral meetin0 of the sharehol$ers in li0ht of the Com'anies !r$inance, 5istin0 4e0ulations, Co$e of Cor'orate 8overnance an$ our *rticles of *ssociation= ;e re<uest all our sharehol$ers to 'artici'ate= ;e also ensure that a co'y of the annual re'ort containin0 the a0en$a an$ notice of our *8M is $is'atche$ to every sharehol$er at her/his re0istere$ a$$ress= ,wners5ip < Control #tructure Com'lete $isclosure of 6C6 )a,istanFs sharehol$in0 structure is 0iven in the 'attern 'ursuant to the Com'anies !r$inance an$ the Co$e of Cor'orate 8overnance in the 'rinte$ accounts of the com'any= !ur share ca'ital is com'rise$ of or$inary shares= .o other class of shares is issue$ +y the com'any= 6C6 !micron &=V= hol$s 7(=13 'ercent shares in the com'any= "he rest of the shares are hel$ +y the 0eneral 'u+lic an$ institutions= )elated Party 2ransactions ;e maintain a com'lete an$ u'$ate$ list of relate$ 'arties= *ll transactions %ith relate$ 'arties are carrie$ out on an un+iase$, arms len0th +asis as 'er formulas a''rove$ +y the &oar$ of 2irectors= * com'lete list of all relate$ 'arty transactions is com'ile$ an$ su+mitte$ to the *u$it Committee every <uarter= *fter revie% +y the *u$it Committee the transactions are 'lace$ +efore the &oar$ for their consi$eration an$ a''roval=

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E Corporate Governance and Co pliance E %0

:aterial "nterests of 1oard :e /ers 2irectors are re<uire$ to $isclose, at the time of a''ointment an$ on an annual +asis the $irectorshi's or mem+ershi's they hol$ in other cor'orations= "his is in 'ursuance %ith the Com'anies !r$inance, Section 234, %hich also re<uires them to $isclose all material interests= ;e use this information to hel' us maintain an u'$ate$ list of relate$ 'arties= 6n case any conflict of interest arises, %e refer the matter to the &oar$Fs *u$it Committee= C5ief *!ecutive Perfor ance Criteria "he 'erformance of the Chief E:ecutive is evaluate$ on a +len$ of <uantitative PvalueF an$ <ualitative PvaluesF $riven o+9ectives= Value $riven o+9ectives relate to 0ro%th an$ financial 'erformance of the com'any %hile values relate to the com'anyFs 'erformance on sustaina+ility 'arameters= In$er'innin0 +oth these o+9ectives is the Pho%F com'onent %hich measures %hat 'rocesses an$ 'olicies %ere im'lemente$ an$ com'lie$ %ith=

"he *u$it Committee com'rises three $irectors all of %hom are non> e:ecutive $irectors inclu$in0 the Chairman= "he Chief #inancial !fficer an$ re'resentatives of internal au$itors atten$ the Committee meetin0s +y invitation= "he *u$it Committee meets at least four times in a year= *t least once a year, it meets the e:ternal au$itors %ithout the C#! or the internal au$itors +ein0 'resent= 6t further meets at least once a year, the internal au$itors %ithout the C#! +ein0 'resent= "he *u$it Committee met five times $urin0 the year un$er revie%= )e uneration co ittee "he 4emuneration committee is a Su+>Committee of the &oar$ an$ is res'onsi+le for revie%in0 the remuneration an$ +enefits of the Chief E:ecutive, e:ecutive $irectors an$ other senior mana0ers= 6t also revie%s the overall remuneration +u$0et of the Com'any= "he Committee consists of t%o non>e:ecutive $irectors= "he Vice )resi$ent Human 4esources acts as the Secretary an$ the committee meets at least once a year= 1an-ing Co ittee "his Committee com'risin0 t%o e:ecutive an$ one non>e:ecutive $irector has +een constitute$ to a''rove matters relatin0 to o'enin0, closin0 an$ $ay to $ay o'erations of +an, accounts= "he resolutions 'asse$ +y the &an,in0 Committee are su+se<uently ratifie$ +y the &oar$= #5are transfer co ittee "he share transfer committee consists of t%o e:ecutive an$ one non> e:ecutive $irector= "his committee a''roves re0istrations, transfers an$ transmission of shares= 4esolutions 'asse$ +y the Shares transfer committee are su+se<uently 'lace$ at &oar$ meetin0s for ratification=

Co ittees of t5e 1oard Audit co ittee wit5 /rief ter s of refernce "he *u$it Committee ensures that the Com'any has a soun$ system of internal financial an$ o'erational controls= 6t serves as Pthe eyes an$ the earsF of the &oar$, assistin0 it in $ischar0e of its fi$uciary res'onsi+ilities= "he *u$it Committee revie%s the 'erio$ical financial statements of the Com'any an$ announcements of results to the stoc, e:chan0es= !ne im'ortant res'onsi+ility of the Committee is to recommen$ to the &oar$ the a''ointment of e:ternal au$itors an$ facilitate the e:ternal au$it an$ $iscuss %ith the e:ternal au$itors ma9or o+servations arisin0 from interim an$ final au$its= 6n $oin0 so, the Committee also revie%s the mana0ement letter issue$ +y the e:ternal au$itors an$ mana0ementFs res'onse thereto= &esi$es this, ris, mana0ement, com'liance %ith relevant statutory re<uirements, revie% of le0al matters %hich may si0nificantly im'act the financial statements, monitorin0 com'liance %ith the +est 'ractices of cor'orate 0overnance an$ investi0atin0 any violations thereof an$ ensurin0 coor$ination +et%een internal an$ e:ternal au$itors are also the main res'onsi+ilities of the *u$it Committee= 6n carryin0 out its $uties the *u$it Committee has the authority to $iscuss any issue %ithin its remit $irectly %ith the mana0ement, internal au$itors or e:ternal au$itors an$ may o+tain outsi$e le0al or 'rofessional a$vice on it, if it consi$ers necessary=

'0 E Corporate Governance and Co pliance E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

)is- :anage ent "he &oar$ has an overall res'onsi+ility for the ris, mana0ement 'rocess, incor'oratin0 ris, mana0ement an$ internal control 'roce$ures= "he Com'anyFs $ocumente$ an$ re0ularly revie%e$ 'roce$ures are $esi0ne$ to safe0uar$ our assets, a$$ress ris,s facin0 the +usiness, an$ ensure timely re'ortin0 to the &oar$ an$ senior mana0ement= ;e maintain a clear or0ani-ational structure %ith $efine$ $ele0ation of authorities= !ur senior mana0ement ta,es the $ay>to> $ay res'onsi+ility for im'lementation of 'roce$uresS on0oin0 ris, monitorin0S an$ effectiveness of controls= !n an on0oin0 +asis, %e monitor ris,s face$ +y our various +usinesses to ensure 'ertinent control arran0ements= !ur ris, an$ control 'roce$ures are su''orte$ throu0hG Control #elf Assess ent 2ool 6n 2030 the Control an$ Self *ssessment "ool (CS*") %as intro$uce$ +y *,-o.o+el %hich assiste$ in the thorou0h assessment of controls to ensure a ro+ust control structure= Senior mana0ement, alon0 %ith the active involvement of each unitFs mana0ement, le$ this annual self assessment e:ercise in 2030= E:istin0 controls %ere i$entifie$, assesse$ an$ $ocumente$ %ith the hel' of the online tool= ;ea,nesses hi0hli0hte$ throu0h this e:ercise %ere $ocumente$ throu0h action 'lans %hich clearly $efine$ the corres'on$in0 actions to close the i$entifie$ %ea,nesses in the system an$ 'rocesses= !ur internal au$itors, Ernst an$ Moun0, also teste$ the results of the CS*" e:ercise= #urther, action 'lans are follo%e$ u' ri0orously to ensure that timely corrective action is im'lemente$ for the effective functionin0 of controls= *nterprise )is- :anage ent "he Enter'rise 4is, Mana0ement (E4M) metho$olo0y is 'art of *,-o.o+elFs effort to clearly an$ structurally 'rioriti-e the main ris,s affectin0 our o'erations an$ or0ani-ations, in or$er to focus the com'anyFs efforts on those ris,s that are not controlle$ in an acce'ta+le

manner= #or this 'ur'ose, E4M %or,sho's %ere con$ucte$ across all our &usinesses= "he 'ur'ose an$ 0oal of the E4M %or,sho's %as to i$entify, assess an$ $evelo' res'onses to the main ris,s that are affectin0 or coul$ in the future affect 6C6 )a,istan 5t$ in achievin0 its strate0y an$ o+9ectives (financial & non>financial)= * cross>functional &usiness E:ecutive "eam i$entifie$ a $etaile$ list of overall +usiness ris, e:'osures= "his e:ercise %as 'erforme$ +y all +usinesses $urin0 2030 an$ the main outcome of these %or,sho's %as the $evelo'ment of a current an$ com'lete ris, 'rofile u'on %hich necessary action 'lans %as $evelo'e$ to miti0ate the main ris,s= Co pliance $onB=inancial and =inancial ?etter of )epresentation "he .on>#inancial 5etter of 4e'resentation is the re'resentation of mana0ement to its hi0her level of mana0ement an$ the 0rou' on ho% mana0ement has $ealt %ith the $ele0ate$ res'onsi+ility, has a$here$ to the rules an$ re0ulations an$ e:'lains e:ce'tions an$ $eviations that occurre$ $urin0 the year= "he res'ective &usiness an$ #unction Hea$s su+mitte$ an annual re'resentation to the Chief E:ecutive= * consoli$ate$ version is sent to the 8rou'= "nternal and *!ternal Audit !ur Cor'orate *u$it function 'lays a ,ey role in 'rovi$in0 the mana0ement an$ the &oar$ an o+9ective vie% an$ reassurance of the effectiveness of the ris, mana0ement an$ relate$ control systems throu0hout the entity= "he &oar$, throu0h the *u$it Committee, has revie%e$ the assessment of ris,s, internal an$ $isclosure controls an$ 'roce$ures an$ su00este$ reme$ial actions %here a''lica+le= "he role of the *u$it Committee is to assist the &oar$ in fulfillin0 their oversi0ht res'onsi+ilities re0ar$in0 the inte0rity of 6C6 )a,istanFs financial statements, ris, mana0ement an$ internal control, com'liance %ith le0al an$

re0ulatory re<uirements, the e:ternal au$itorsF 'erformance, <ualifications an$ in$e'en$ence, an$ the 'erformance of the internal au$it function= "he e:ternal au$itors are a''ointe$ +y the sharehol$ers on a yearly +asis at the annual 0eneral meetin0 on the recommen$ation of the +oar$ of $irectors= "he 'artner in char0e of our au$it is rotate$ every five years as 'er the local re0ulations=

6n this uncertain %orl$, mana0ement of o'erational ris,s is a to' 'riority= ;e have formal ris, assessment 'rocesses in 'lace to 0ive reasona+le assurances to our sta,ehol$ers an$ to safe0uar$ our interests=
Hia G #yed
Cor'orate Com'liance & Share$ Services Mana0er

:aIor ris- factors assessed

*s a result of the E4M e:ercises, our ris, 'rofile emer0e$= 6n the matri: +elo%, %e share some of these ris,s alon0 %ith the action +ein0 ta,en to miti0ate such ris,s=

"nternal #trategic H Chan0e in +ran$ i$entity $ue to chan0e in o%nershi'= 4is, of failure to successfully im'lement an$ mer0e the transition strate0y can result in contraction of +ran$ e<uity lea$in0 to loss in sales volume es'ecially in )aints +usiness= "he transition is minimi-e$ an$ ris, is mana0e$ throu0h active en0a0ement 'rocess=

*!ternal H 4is, of lar0e scale chea' im'orts or $um'in0 of so$a ash in )a,istan +y ma9or international manufacturers, in vie% of oversu''ly in 0lo+al so$a ash in$ustry o%in0 to economic recession, resultin0 in $omestic sales / mar,et share 0oin0 $o%n= H *$>hoc tariff a$9ustments on im'orts ne0atively im'actin0 com'etitiveness of local 'ro$ucers li,e ourselves= H 4is, of e:'ansion/ 'ro$uctivity enhancement 'ro9ects $elivera+les an$ +usiness continuity +ein0 im'acte$ +y volatile la% & or$er situation= !ne of the ,ey uncertainties is the manner throu0h %hich 0overnment 'olicies evolve an$ their consistency= "he &oar$ an$ mana0ement en$eavor to $efine an$ im'lement a clear strate0y to overcome these strate0ic e:ternal ris,s an$ continuously see, $ialo0ue %ith the 'olicy ma,ers throu0h various +usiness forums in the overall interest of the $omestic in$ustries=

,perational

H 2e'en$ence on a sin0le source su''lier= 6na+ility to access ra% materials may a$versely influence the future results of the com'any=

H 4is, of $isru'tion of electricity an$ natural 0as, +ecause of unavaila+ility of resources, can ne0atively im'act +usiness $elivera+les $ue to $elay in local manufacture$ items/ material an$ $ue to re$uction in Contri+ution Mar0in as a result of usin0 e:'ensive alternate fuels= *nother 'rinci'al uncertainty facin0 the com'any is the e:tent of economic $o%nturn +ase$ on a+ove uncontrolla+le factors= "he &oar$ an$ the mana0ement closely monitor the economic an$ mar,et $evelo'ments an$ ,ee' in>touch %ith our 'artners in the value chain= "he com'any is assessin0 the im'lementation of an alternate ener0y o'tion in its So$a *sh +usiness=

"he com'any aims to use its 'urchasin0 'o%er an$ lon0 term relationshi's %ith the su''liers to ensure continuous availa+ility of ra% materials an$ safe0uar$ their constant $elivery at the +est con$itions= ;e have also ac<uire$ our o%n salt mine on lease to ensure availa+ility of vital ra% material for So$a *sh= H 4is, of failure to $evelo' the talents of our 'eo'le in line %ith chan0in0 or0ani-ational nee$s im'actin0 overall Com'any sustaina+ility=

'% E Corporate Governance and Co pliance E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

"nternal ,perational continued "he +oar$ an$ mana0ement 'ut 0reat em'hasis on attractin0, e$ucatin0, motivatin0 an$ retainin0 staff, usin0 en0a0ement tools such as 'erformance an$ $evelo'ment a''raisals an$ $ialo0s, em'loyees surveys, lea$ershi' i$entification an$ revie% as %ell as lea$ershi' $evelo'ment= 6tFs a firm +elief that %ithout 'eo'le %e %oul$ not have a +usiness an$ 0ro%in0 +usiness means havin0 to $evelo' our 'eo'le=

*!ternal

=inancial

H 4is, of $efault in 'ayments, in hi0hly $ifficult economic con$itions, lea$in0 to a$verse financial im'act on the com'any= "he com'anyFs counter'arty ris, is sufficiently $iversifie$ %ith esta+lishe$ limits for ,ey customers= Cre$it revie%s are re0ularly con$ucte$ to ali0n the e:'osure in line %ith the chan0in0 con$itions %hile remainin0 %ithin the overall ris, a''etite of the com'any=

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E Corporate Governance and Co pliance E ''

*%ar$s & ac5ieve ents

;e ,no% that e:cellence s'ea,s for itself, +ut %eFre also 'rou$ of +ein0 reco0ni-e$ +y e:ternal cor'orate an$ 0overnment +o$ies for our efforts in various areas=
1est Corporate )eport Award !ur *nnual 4e'ort 200A %as amon0st the to' five in the Chemicals an$ #ertili-ers cate0ory of the 6C*) &est Cor'orate 4e'ort *%ar$s= "his is the fourth successive year that %e have ha$ the honor of %innin0 the &est Cor'orate 4e'ort *%ar$= PCP )ecognition for 1est Corporate Giving ;e receive$ reco0nition from the )a,istan Center for )hilanthro'y ()C)) for +ein0 amon0st the to' cor'orate 0ivers for 2030= .t5 Annual *nviron ent *!cellence Award %0&0 ;e %ere amon0 the %inners of the 2030 Environment E:cellence *%ar$s or0ani-e$ +y )a,istanFs .ational #orum for Environment an$ Health (a non>'rofit affiliate$ %ith the I. Environmental )ro0ram)=

Calen$ar of aIor events

:eetings
:ont5 #e+ruary *vent &oar$ Meetin0 *u$it Committee Meetin0 4emuneration Committee Meetin0 *nnual 8eneral Meetin0 &oar$ Meetin0 *u$it Committee Meetin0 &oar$ Meetin0 *u$it Committee Meetin0 &oar$ Meetin0 *u$it Committee Meetin0 5on0 Service *%ar$s 5ahore HSE Mana0ement Meetin0 Succession )lannin0 Meetin0 5on0 Service *%ar$s @arachi

Communication is not 9ust another 9o+S every $ay 6 have the chance to come u' %ith ne% i$eas an$ ne% %ays of 'uttin0 across to the %orl$ %hat %e as a com'any are all a+out=
Fafsa Hu/air
&ran$ Mana0er, Cor'orate Communications & )u+lic *ffairs

March *'ril

*u0ust

!cto+er

.ovem+er 2ecem+er

'4 E Awards < ac5ieve ents E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

"echnolo0y develop ents

9ision "o 'roactively 'artner %ith the +usinesses an$ functions of 6C6 )a,istan, in or$er to hel' them achieve their @ey Strate0ic !+9ectives, throu0h innovative an$ cost effective 6" solutions= Fig5lig5ts of %0&0 H Strate0ic initiative to im'lement S*) at the )aints +usiness H 2e'loyin0 Mc*fee En$ )oint to enhance security of information assets H 4emote 2isaster Site com'lete$ to stren0then +usiness continuity H Mi0ration from 5otus to MS !utloo, / Share)oint in line %ith 0lo+al 'olicies H Ena+lin0 smarter +usiness colla+oration throu0h tools such as vi$eo conference, %e+ meetin0s etc= 2ea "he team is a +len$ of rich e:'erience an$ youthful ener0y= !ur 'eo'le have talent, creative $rive an$ enthusiasm= "his has +een reflecte$ in the $elivery of very challen0in0 'ro9ects, %hich are aime$ at achievin0 +est in class in terms of 'rocesses, efficiencies an$ controls= :aIor ProIects J " prove ents !ur focus %as on $eliverin0 ,ey strate0ic initiatives emanatin0 from the (>year strate0y roa$ma'= 5evera0in0 on our current S*) 'latform, %hich has ena+le$ our +usinesses to run efficiently on 'rocesses $erive$ from in$ustry +est 'ractices, $eliverin0 value, efficiency an$ controls, %as ,ey to our strate0y= 6n line %ith this strate0ic thrust it %as $eci$e$ to im'lement S*) at )aints= "he mi0ration of our e>mail an$ non>E4) a''lications to Microsoft !utloo, an$ Share)oint is aime$ at +oth, ali0nment %ith the 0rou', an$ an o''ortunity to consoli$ate an$ stan$ar$i-e, there+y sim'lifyin0 the 6M lan$sca'e= ;e have un$erta,en e:'ansion of the 6" infrastructure %ith the latest technolo0y to ena+le our 'eo'le to colla+orate more effectively throu0h the use of tools for vi$eo conferencin0, %e+ meetin0s etc= "he security of our information assets is ma$e more ro+ust %ith the $e'loyment of en$ 'oint security, an$ the esta+lishment of a remote 24 site= =uture ,utloo;e %ill continue to loo, for o''ortunities an$ innovations that %ill ena+le our +usinesses to %or, smarter an$ faster= ;e %ill nee$ to levera0e the investments that have +een ma$e in our a''lications, continue focus on the $evelo'ment of our 'eo'le, an$ ensure +usiness continuity an$ sustaina+ility are stren0thene$=

1efore %004 &es'o,e systems in 6C6 )a,istan &)CS at )aints 2e>centrali-e 6" or0ani-ation

%004 B %0&0 S*) 6m'lemente$ in 6C6 )a,istan S*) roll out in )aints 2030 > 2033 6" re>or0ani-e$ as a central share$ service function Consoli$ation an$ stan$ar$i-ation of 6" infrastructure= State of the art central $ata center 6"! scheme intro$uce$

Hetero0eneous 6" infrastructure

Ca'a+ility 0a'

6n an increasin0ly technolo0y> $e'en$ant %or,'lace, the ever> mor'hin0 nee$ for im'rovement 'rovi$es constant challen0es= #in$in0 solutions for to$ay an$ ne% ans%ers for tomorro% is the e:citement of my 9o+T
Hain Hafar Alvi
S*) Consultant

Community invest ent

;or,in0 to ensure a 'ositive im'act on our surroun$in0 communities an$ society as a lar0er %hole is somethin0 %e as a com'any have focuse$ on since our early $ays= ;e %or, to 'romote $evelo'ment an$ sustaina+le investment in various areas of social an$ community %elfare=
*ducation E$ucation is a 'rime focus in a $evelo'in0 country li,e )a,istan= ;e su''ort various schools throu0hout )a,istan, es'ecially in localities near our o'erations= Govern ent 1oys Pri ary #c5ool( 8a-apir; "his school caters to chil$ren from the locality of @a,a'ir, a small coastal fishin0 villa0e= ;e have +een hel'in0 run this school for the 'ast si: years= "nstitute of 1e5avioral Psyc5ology 6"1P7; ;e have com'lete$ t%enty years of su''ort to 6&), %hich 'rovi$es chil$ren %ith learnin0 $isa+ilities an e$ucation, an$ hel's 0ive them the tools to +ecome 'ro$uctive mem+ers of society

*nviron ent )rotectin0 an$ maintainin0 the environment is +ecomin0 a more critical nee$ %ith every 'assin0 $ay= ;e run an$ su''ort a variety of initiatives, +oth internal an$ e:ternal, in this re0ar$= #ave t5e 2urtle ProIect; Since 200(, %e have su''orte$ the ;;#?s PSave the "urtle )ro9ectF= ;;# )a,istan carries out this 'ro9ect in colla+oration %ith the City 2istrict 8overnment of the 'ort city of @arachi, %hich has several im'ortant marine turtle nestin0 +eaches= "his 'ro0ram involves ,ee'in0 nestin0 +eaches free from litter an$ $e+ris %hich en$an0ers marine turtlesS e$ucatin0 the local 'o'ulationS an$ raisin0 0eneral a%areness +y involvin0 the 'u+lic in re0ular +each> cleanin0 efforts= ;hen %e +ecame en0a0e$ %ith the 'ro9ect, 2204 hatchlin0s %ere release$ each season= "his num+er has no% increase$ to (,000 hatchlin0s every season= !ver si: years %e have hel'e$ contri+ute to the safe release of 230,000 hatchlin0s= ;e have also 'artici'ate$ re0ularly in ;;#Fs annual .ature Carnival %hich e$ucates chil$ren on environmental issues= )educing car/on e issions ;e launche$ a com'any>%i$e car'oolin0 $rive %ith the o+9ective of re$ucin0 our car+on emissions, conse<uently re$ucin0 our in$ivi$ual an$ collective car+on foot'rint= our em'loyees 'artici'ate$ in this $rive an$ car'oole$ to %or, in 2030, savin0 / =( ,0 of car+on $io:i$e= Fealt5 )a,istanFs lar0e rural 'o'ulation is face$ %ith a severe lac, of a$e<uate healthcare facilities, an$ %e have trie$ throu0h our efforts over the years to com+at this serious 'ro+lem=

Govern ent Girls :iddle #c5ool( 1arar-ot( 2e5sil Gari Fa/i/ulla5G "his school %as com'letely $evastate$ in the 200( earth<ua,e= ;e %or,e$ %ith local authorities an$ re+uilt the school in 200/ an$ since then have hel'e$ run it= 5ast year %e u'0ra$e$ the school, from 'rimary to secon$ary level=

2i//i Fariya #c5ool( #5ei-5upura; #or the 'ast si: years %e have su''orte$ this school near our )olyester 'lant=

'6 E Co

unity invest ent E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Stu$ents of the &arar,ot school $urin0 a 'erformance

* 'atient +ein0 e:amine$ at our free 54&" eye cam'

* stu$ent of the @a,a'ir school

2istri+utin0 relief 0oo$s to the floo$ survivors in the floo$e$ areas

?)12 *ye Clinics; Since 3AA3 our So$a *sh &usiness has run sur0ical eye cam's in colla+oration %ith 54&", 'rovi$in0 free of cost treatment to local resi$ents of the @he%ra an$ )in$ 2a$an @han area= * team of 54&" o'hthalmolo0ists from 54&" @arachi, carry out these free eye chec,u's, me$ical screenin0s an$ sur0eries usin0 the facilities at our ;innin0ton Hos'ital= ;e no% have initiate$ the same 'ro0ram for the community near our )olyester 'lant in Shei,hu'ura, %ith the first eye cam' +ein0 hel$ in .ovem+er 2030 e:aminin0 nearly 200 'atients=

9olunteer progra 5aunche$ in 200A, our volunteer 'ro0ram has com'lete$ its secon$ successful year= Em'loyees from across the com'any volunteere$ in a variety of initiatives ran0in0 from ta,in0 stu$ents out on fiel$ tri's, to visitin0 hos'itals an$ or0ani-in0 relief efforts=

1lood Donation Ca ps; 6n 2030 our 5ife Sciences &usiness initiate$ a country>%i$e +loo$ $onation $rive in colla+oration %ith the #atimi$ #oun$ation, %hich is a non>'rofit or0ani-ation that %or,s to 'rovi$e life> savin0 hematolo0y services to thalassemia 'atients= 2urin0 this $rive there %ere t%o se'arate +loo$ $onation cam's or0ani-e$ in %hich over 200 em'loyees $onate$ +loo$=

!ur volunteer team hea$e$ +y ;a<ar * Mali, visitin0 floo$ affecte$ areas in Su,,ur

=lood )elief and )e5a/ilitation 6n 2030, the %orst floo$s in )a,istanFs history left 20 million 'eo'le $is'lace$= )a,istanFs $evastatin0 floo$s %ere traumati-in0 for the %hole nation, $estroyin0 livelihoo$s, homes, cro's, schools an$ more= *t 6C6 )a,istan 5imite$ %e %or,e$ actively to 'rovi$e relief to those affecte$ +y the floo$s across the country= ;e initiate$ an imme$iate emer0ency relief 'ro0ram throu0h the 6C6 )a,istan #oun$ation to 'rovi$e foo$ an$ me$ical assistance to areas that %ere severely floo$e$ an$ cut off=

Staff from our +usinesses all aroun$ )a,istan volunteere$ their time an$ hel'e$ 'ut to0ether 30,000 emer0ency care 'ac,s fille$ %ith imme$iate sustenance items such as $ates an$ +iscuits, alon0 %ith %ater an$ +asic me$ical an$ sanitation su''lies= :edical ca ps !ur 5ife Sciences team also set u' 3( me$ical cam's in floo$>affecte$ areas of )un9a+ an$ @hy+er )a,htoon @hu%a= .ine veterinary cam's %ere also set u' for floo$ affecte$ livestoc,=

"he volunteer %or, 6 $i$ $urin0 the #loo$ 4elief Cam'ai0n %as one of the most satisfyin0 e:'eriences of my life, an$ %as a re%ar$ in itself=
:u5a
)ro$uction Mana0er, So$a *sh

ad G ar :us5ta+

'8 E Co

unity invest ent E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Com'any>%i$e care 'ac, $rive

* youn0 floo$ survivor

* floo$ survivor carryin0 a +o: of relief 0oo$s

!ne of the schools that %ere 'ainte$ $urin0 the floo$ relief efforts

,ne illion eals "he 6C6 )a,istan #oun$ation contri+ute$ 4s= / million for floo$ relief= "he #oun$ation $is'atche$ one million meals in the form of essential rations an$ clean $rin,in0 %ater to affecte$ areas= &y *u0ust en$, %e %ere a+le to $is'atch rations all over )a,istan an$ achieve$ our ?million meal? tar0et=

)elief ca p visit 6C6 )a,istan 5imite$ Volunteers also visite$ a relief cam' set u' an$ o'erate$ +y the )a,istan .avy in "hatta, Sin$h, an$ $istri+ute$ 400 s'ecially 're'are$ 'ac,s to chil$ren on the occasion of Ei$= "hese 'ac,s containe$ s%eets, +iscuits, 9uice, mil,, colorin0 +oo,s, an$ 'encil cases %ith crayons etc= !ur volunteers also $onate$ ( %ater filtration $evices to the cam'= )e5a/ilitation *fter the success of our 4elief )ro0ram, %e have initiate$ a 4eha+ilitation )ro0ram for floo$ affectees, startin0 %ith si: schools in .o%shera @alan that %ere $estroye$ in the floo$s= ;e are no% reconstructin0 houses in colla+oration %ith @arachi 4elief "rust (@4")= "he #oun$ation si0ne$ an a0reement to +uil$ houses in 4ahim Mar @han, )un9a+ an$ Mun$a Hea$%or,s in @hy+er )a,htun @hu%a= Construction of our first mo$el villa0e is nearin0 com'letion=

Each house constructe$ in the mo$el villa0e has t%o rooms, a +athroom, a ,itchen an$ a front o'en area=

Health, Safety, *nviron ent < #ecurity

1eliefs and Principles *t 6C6 )a,istan %e remain committe$ to maintainin0 our lea$ershi' 'osition as a 4es'onsi+le Care Com'any= "he health an$ safety of our em'loyees, 'rotection of environment an$ focus on sustaina+le $evelo'ment remains a cornerstone of our strate0ic $ecision>ma,in0= ;e strive at all levels to create +usiness value, o''ortunities an$ com'etitive a$vanta0e throu0h our HSE&S 'erformance= F#*<# :anage ent #yste !ur HSE&S mana0ement system is at the heart of 6C6 )a,istanFs continuous im'rovement $rive= 6t com'rises of seven elements each outlinin0 the minimum re<uirements to meet our HSE&S 'olicy= "hese elements are as follo%sG 3= Mana0in0 im'rovement 2= Health an$ safety of em'loyees an$ contractors = Security of 'eo'le an$ assets 4= )ro$uct ste%ar$shi' (= Emer0ency res'onse an$ community a%areness /= *sset inte0rity an$ 'rocess safety 7= Site environmental 'rotection & 'ollution 'revention Com'liance to local re0ulatory re<uirements an$ co$es of 'ractice a''lica+le in )a,istan is man$atory coverin0 all our +usiness an$ o'erational activities= ;hile the $rive to sustain an$ continuously im'rove our Health, Safety, Environment an$ Security 'erformance is the res'onsi+ility of 6C6 )a,istanFs E:ecutive &oar$, the successful achievement of results re<uire the active 'artici'ation of every em'loyee of the com'any= F#*<# Assurance Processes !ur slo0an for sustainin0 this e:cellent HSE recor$ is sim'leG ?@ee' 2oin0 the &asics 4i0ht?, an$ some of these +asics areG 3= Continue reco0ni-in0, re'ortin0 an$ correctin0 ha-ar$ous con$itions an$ unsafe acts throu0h our 5earnin0 Events 2ata+ase system an$ of course, &ehavior &ase$ Safety= 2= Ensurin0 that em'loyees are 'rovi$e$ information, instructions, su'ervision an$ trainin0 to o'erate an$ maintain our e<ui'ment an$ facilities in a J#it for )ur'oseK state= = *$herin0 to all systems an$ 'roce$ures that ensure health an$ safety of 'eo'le, 'lants an$ environment= 4= Strict an$ to the +oo, ?Mana0ement of Chan0e? (= Effective Communication to 'romote HSE /= Com'rehensive *u$itin0 of HSE )erformance to 'ro0ress issues= ,ur Perfor ance Fealt5 "here %as no re'orta+le occu'ational illness to our em'loyees or su'ervise$ contractors in 2030= #afety 2urin0 the year, t%o minor in9uries %ere re'orte$ +y our )aints site involvin0 su'ervise$ contractors %ho resume$ their 9o+s after treatment= "he Safety 'erformance at other sites remaine$ %ell controlle$= So$a *sh achieve$ 2 =4 million man hours, )olyester achieve$ 3A=A million man hours, S'ecialty Chemicals achieve$ (=4 millions man hours an$ 5ife Sciences achieve$ 7= million man hours %ithout 5"6 (5ost "ime 6n9ury) to

2030 %as all a+out fully com'rehen$in0 the sco'e of our sustaina+ility frame%or,, an$ in 2033 6 loo, for%ar$ to ta,in0 on sustaina+le $evelo'ment in $iverse areas such as HSE, eco>efficient 'ro$ucts an$ sustaina+le %ater mana0ement=
#yed "+/al Faider
8rou' "echnical Mana0er

em'loyees an$ su'ervise$ contractors= 6m'lementation of *sset 6nte0rity )lans an$ launch of &ehavior &ase$ Safety $urin0 the year further aim to im'rove our Health an$ Safety )erformance movin0 for%ar$= *nviron ent Ener0y consum'tion an$ C!2 emissions %ere lo%er +y (= C an$ C res'ectively on li,e to li,e +asis as com'are$ %ith 200A= .ota+le ener0y conservation initiatives inclu$e$ the 4everse !smosis ;ater )lant at So$a *sh +rou0ht on line in U4 2030= @5at 5appened in %0&0 #afety Day &ein0 'art of the *,-o.o+el 0rou', 6C6 )a,istan cele+rate$ Safety 2ay throu0hout the com'any on !cto+er 2/, 2030= "he activities on this $ay %ere $esi0ne$ to enhance focus on em'loyeesF safety an$ to reinvi0orate the s'irit %hich has hel'e$ maintain an e:cellent safety recor$ over the years for 6C6 )a,istan= !ne of the ,ey activities %as recor$in0 of an in$ivi$ual safety 'le$0e +y each em'loyee committin0 to $o somethin0 'ositive to im'rove their o%n safety an$ those of aroun$ them= More than A(C em'loyees 'artici'ate$ in this 'le$0e>ma,in0= F#*<# 2raining "rainin0 on HSE&S remaine$ a ,ey focus $urin0 2030= 3/C of our total trainin0 hours %ere s'ent on HSE trainin0= #ive HSE&S *%areness Courses, four 5ea$in0 in HSE&S Courses an$ one *cci$ent 6nvesti0ation ;or,sho' %ere con$ucte$= 6n all 317 mana0ers from our five +usinesses an$ cor'orate offices atten$e$ these courses=

6t?s 0reat to +e a 'art of a com'any that has a stron0 culture of sustaina+ility an$ consi$ers health, safety an$ environment an essential catalyst for future success=
#a/ir :a5 ood
HSE & "rainin0 Mana0er, So$a *sh

Safety 2ay %as cele+rate$ throu0hout the com'any on !cto+er 2/ 2030

!ur )aints factory staff on Safety 2ay

Si0nin0 of the Safety 2ay +anner

F#*<# =ra ewor-

Course $a e HSE *%areness Course 5ea$in0 in HSE (.on>Manufacturin0 & Manufacturin0) *cci$ent 6nvesti0ation ;or,sho'

$o3 of $o of #essions Participants ( 4 3 302 /1 37

CP 11# 2raining Progra &ehavior &ase$ Safety is a 'ro0ram for safety throu0h 'eo'le= *n im'lementation team hea$e$ +y the Cor'orate HSE Mana0er %as forme$= "he team $evelo'e$ the trainin0 mo$ules an$ $evise$ strate0y for the im'lementation soon after that= "he trainin0 an$ follo%>u' sessions have +een successfully com'lete$ an$ all +usinesses are &&S com'liant= "here %ere t%o re'orta+le in9uries (one 5ost "ime 6n9ury an$ one 4estricte$ ;or, 6n9ury) in 2030=

"he immense o''ortunity of learnin0 in the %orl$ of *,-o.o+el?s HSE&S systems motivates me an$ ,ee's me e:cite$ a+out my 9o+=
:u5a ad Afa+
HSE & "rainin0 Mana0er, )olyester

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E F#*<# E 4&

!ur "alent =actory

;e +elieve that attraction, $evelo'ment an$ retention of talente$ 'eo'le is 9ust as im'ortant to the success of our Com'any as the $evelo'ment, manufacturin0 an$ sales of 0reat 'ro$ucts= #or this reason %e call ourselves the "alent #actory=
,ur 2alent =actory A /ition ;e strive to create a %or,in0 environment thatFs entre'reneurial an$ customer>$riven, %hich conse<uently hel's our em'loyees to $evelo' their 'otential an$ shar'en their s,ills= "he result of this strate0y is stron0, talente$ lea$ers %ho can truly contri+ute to the sustaina+le 0ro%th of our +usiness= =ulfilling t5e a /ition @or- *nviron ent H Perfor ance < Develop ent Dialog 6P<D Dialog7 "his is our 0lo+al 'erformance mana0ement an$ em'loyee $evelo'ment 'ro0ram %hich is $esi0ne$ aroun$ our com'any values= #or continuous im'rovement in 'erformance, our em'loyees an$ their su'ervisors focus on in$ivi$ual an$ team 0oals= "hrou0h re0ular $ialo0, revie% an$ can$i$ fee$+ac,, our aim is to achieve +etter +usiness results an$ re%ar$ our em'loyees for their 0oo$ %or,= "he )&2 2ialo0 ma,es our evaluation 'rocess sim'ler an$ more trans'arent= "hrou0h a $ocumente$ set of activities an$ a0ree$ results an$ +ehaviors, the 0oal is to 0ive clear $irection an$ su''ort necessary to achieve $esire$ outcomes= H 9iewpoint * ployee *ngage ent ;e +elieve em'loyee en0a0ement is a fun$amental $river of +usiness success= "o ma,e sure that our em'loyees are involve$ an$ committe$ to their roles, %e em+ar,e$ on the en0a0ement 9ourney in 2030=

)eo'le are my ins'iration, an$ %or,in0 %ith them is the +est 'art of my 9o+
Haina/ 85an
Human 4esource Mana0er, )aints

!ur first survey %as very %ell receive$, %here a sta00erin0 A4C of our em'loyees 'artici'ate$, to have their say an$ ma,e a $ifference= "hrou0h $e$icate$ trainin0 sessions across all +usinesses, %e have e<ui''e$ our mana0ers %ith ,no%le$0e an$ s,ills to ta,e effective action %ithin their teams to achieve en0a0ement an$ su+se<uently, +etter +usiness 'erformance= Isin0 0lo+al +enchmar,s, e:'ert a$vice an$ hi0hly committe$ mana0ers, %e %ant to create an environment %here 'eo'le en9oy their %or, an$ feel 'ositive a+out it= H Diversity < "nclusion 6D<"7 ;e are ta,in0 ste's to create a 'lace %here everyone is value$, %here everyone counts, an$ %here everyone can +e the +est at %hat they $o= #or us to ma,e real 'ro0ress on 2&6 %e ensure everyone 0oes throu0h the e>learnin0 a%areness mo$ule to clearly un$erstan$ %hat it means an$ ho% %e can +rin0 a+out chan0es in the %ay %e thin, an$ across our +usinesses= ;e %ant to create a %or, 'lace %here everyone has the o''ortunity to $evelo' s,ills an$ talents consistent %ith our com'any values an$ o+9ectives, a 'lace %here %e harness the 'o%er of all the %ays in %hich %e are $ifferent=

6 starte$ the year in Mar,etin0 at the )olyester &usiness in )a,istan, an$ en$e$ it as a 8lo+al )ro0ram Mana0er 2&6, at the Hea$ !ffice in *mster$am= "hat?s the thrill of this com'any > the sheer $iversity of o''ortunitiesT
1ilal #ala5uddin
8lo+al )ro0ram Mana0er, 2iversity & 6nclusion Hea$ !ffice, *mster$am

6 am 'rou$ to +e 'art of a function that is inte0ral in ma,in0 my com'any an even +etter 'lace to %or,=
:uddassir 85alid
Human 4esource Mana0er, )olyester

,pportunities for ?earning and Develop ent "he overarchin0 o+9ective of our learnin0 an$ $evelo'ment cell is to create an ena+lin0 environment %here all our em'loyees have access to the necessary tools, techni<ues an$ $esire$ e:'osure, that %ill hel' them to 0ro% in the or0ani-ation throu0h 'rofessional learnin0= 6n 2030, over 27,000 man hours %ere $e$icate$ to formal trainin0 across all +usinesses an$ functions= H #ustaina/ility ?eaders5ip Progra is $esi0ne$ to increase un$erstan$in0 of the environmental im'act %e have on our 'lanet an$ the uni<ue res'onsi+ilities %e have as lea$ers to $o somethin0 a+out it an$ to use those insi0hts to the a$vanta0e of our +usinesses= H " pact is a 0eneral mana0ement 'ro0ram $evelo'e$ an$ run in 'artnershi' %ith 6.SE*2, #rance= 6t 'ays 'articular attention to our success factors PCreate Customer ValueF an$ P2are to 4e>6nventF= "his is our %ay to ensure that our mana0ers are livin0 e:am'les of our Com'any values= "%o of our mana0ers atten$e$ the 6m'act 'ro0ram in 2030= H ,ctagon is a 'ro0ram that trains our mana0ers on enter'rise level thin,in0 so they 0et a $ee'er un$erstan$in0 of $ifferent +usiness 'ers'ectives= !ne of our senior mana0ers atten$e$ !cta0on in 2030 an$ %as 'art of a 0lo+al team of ei0ht, %or,in0 on a +usiness 'ro9ect assi0ne$ +y the &oar$ of Mana0ement of *,-o.o+el an$ to' e:ecutives= H *!ecutive ?eaders5ip =oru is a to' lea$ershi' 'ro0ram %here ne% e:ecutives across the 0lo+e are collectively traine$ +y the to' lea$ershi' team at *,-o.o+el Hea$<uarters= H Advanced :anage ent Progra is $esi0ne$ to hel' senior an$ mi$$le mana0ers in +ecomin0 more 'roficient in lea$in0 lar0e an$/or com'le: functional teams, 'ositively influencin0 their %or, culture, $evelo' lea$ershi' talent amon0 their staff an$ create hi0h 'erformin0 teams= *''ro:imately A0C of our relevant mana0ers have no% +een certifie$ in the *M)= H :anage ent *ssentials Progra "hrou0h this 'ro0ram, %e have certifie$ over 70C of all our mana0ers, +y virtue of %hich they have ac<uire$ the necessary 'eo'le $evelo'ment s,ills inclu$in0 techni<ues such as the PSituational 5ea$ershi'F that %ill ensure continuous ca'a+ility $evelo'ment= H Core develop ent ;e 'rovi$e our em'loyees the tools to hel' them meet customer e:'ectations an$ 'osition the com'any as customers? clear choice= Em'loyees see,in0 functional learnin0 o''ortunities committe$ to a total of over 1,000 man hours of trainin0 on these 'ro0rams in 2030=

CrossB/usiness and functional opportunities H 1usiness 5earnin0 an$ 0ro%th o''ortunities for our em'loyees our en$lessT "hrou0h the year %e have ma$e sure our talente$ em'loyees ca'itali-e on cross>functional an$ +usiness o''ortunities that can only +e ma$e 'ossi+le in an environment li,e ours= !ur five $iverse +usiness units across the country, cater to virtually every in$ustry in )a,istan= "he result is a 0rou' of talente$ em'loyees %ho have, over the years, not only ac<uire$ multi functional s,ills +ut also %or,e$ in $ifferent +usiness se0ments= H "nternational Assign ents 8lo+al mo+ility of our em'loyees 'lays an im'ortant role in our internationally mana0e$ +usiness= 6nternational assi0nments hel' the 8rou' %ith the transfer of critical s,ills, the $evelo'ment of ,ey em'loyees an$ of lea$ershi' talent= 1uilding an industryBleading 2alent =actory Every $ay our $e$icate$ team of em'loyees an$ mana0ers across all +usinesses an$ functions 'osition us closer to our lon0er term 0oal > X&uil$in0 an in$ustry>lea$in0 "alent #actory,X +y creatin0 a %or, environment that ena+les 0reatness in our 'eo'le, 0ivin0 our com'any $ee'er $imensions=

Adding color to peoples lives

"he coatin0s in$ustry is more than 9ust a +usiness= 6t is a form of e:'ression for 'eo'le an$ there+y %eaves us closely to their lives= So the <uest for e:cellence is not 9ust in terms of functionality an$ technolo0ical a$vancementsS +ut ho% %e can affect an$ im'rove lives %ith everythin0 %e $o= *t our )aints &usiness, %e ta,e this res'onsi+ility very seriously an$ have i$entifie$ the 'ur'ose of our +usiness as P*$$in0 color to 'eo'leFs livesF= "his is %hat $efines us=== this is %hat e:cites usY this is %ho %e areT Everyone %ants a more ?colorful? life an$ $ecoratin0 our surroun$in0s is one %ay of e:'ressin0 this to ourselves an$ to others= )aint is one of the most 'o%erful an$ affor$a+le tools for +rin0in0 a lar0e color effect into a s'ace= ;e offer a color 'alette of more than /000 colors= ;e have set u' color stu$ios across the country %here you can sim'ly %al, in an$ +e trans'orte$ to a %on$erful %orl$ of color= *lon0 %ith this, %e offer free consultancy at all our stu$ios %here our color am+assa$ors %ill hel' you transform your surroun$in0s= So, 9ust $ial 0100 > 2ulu: or visit us at %%%=ici$ulu:=com=', an$ let us a$$ more color to your life=

jfir b i

!Lmf

)aints Decorative
Products !ur t%o +ran$s, 6C6 2ulu: an$ )ainte: each have a com'lete 'ro$uct 'ortfolio %ith 6C6 2ulu: caterin0 to the 'remium an$ su'er> 'remium tiers, an$ )ainte: to the mi$ an$ lo% tiers= 6C6 2ulu: is our fla0shi' +ran$ that has earne$ its re'utation +ase$ on its consistent a+ility to out'erform +oth com'etitors an$ the e:'ectations of its consumers %ith its 'ro$uct <uality an$ innovation ('ro$ucts an$ services)= 6C6 )ainte: is our value for money +ran$ that caters to consumers %ho as'ire to +rin0 home results that offer value at its +est= ;e have a $irect net%or, that s'ans the country reachin0 millions of consumers across )a,istan= Custo er Connectivity < *ngage ent An "C" Dulu! "nnovation "he 'aint cate0ory in )a,istan is ra'i$ly maturin0 an$ consumers are +ecomin0 more conscious an$ a%are of their nee$s= 6C6 2ulu: has al%ays +een at the forefront of innovation throu0h to' <uality 'ro$ucts an$ cuttin0 e$0e technolo0y= 6C6 2ulu: is the 'ioneer of the "intin0 System in )a,istan un$er the la+el of 6C6 2ulu: Color Solutions= 6C6 2ulu: )oint of Sale "intin0 ()!S") offers over 2000 sha$es availa+le all over )a,istan at $esi0nate$ $ealer outlets= Color consistency an$ <uality is our forte an$ our customers can +e confi$ent that the color they +rin0 home is e:actly %hat they %ant= "o locate 6C6 2ulu: )oint of Sale "intin0 near you sim'ly lo0 on to %%%=ici$ulu:=com=', :o/ile Color #olutions "o$ayFs customer is more informe$ an$ involve$ in the 'aint 'rocess= 6C6 2ulu: a''reciates the ne% attitu$e an$ inten$s to set ne% 'rece$ents= Customer comfort an$ convenience is the nee$ of the hour= 6C6 2ulu: Mo+ile Color Solution Center visite$ 'remium resi$ential an$ commercial localities in 5ahore, @arachi an$ 6slama+a$ to 'rovi$e services such as color consultancy, interior $ecoration a$vice, technical assistance an$ 'aint 'revie%s at the customer?s $oorste'= Painter 2raining )ainters re'resent an e:tremely ,ey 0rou' of influencers= * si0nificant issue in the local mar,et is that 'ainters have little or no formal trainin0= "ra$e is 'asse$ from master to stu$ent, resultin0 in a lac, of technical ,no%le$0e an$ stan$ar$i-e$ 'ractices= "o formali-e the tra$e an$ +rin0 a+out more 'rofessionalism, %e initiate$ a 'ilot 'ro0ram %ith the Construction "echnolo0y "rainin0 6nstitute (C""6) 6slama+a$= !ur )aints team in colla+oration %ith C""6 is trainin0 +uil$in0 'ainters in 'aint a''lication techni<ues, trou+le shootin0, color selection an$ 0oo$ safety an$ environmental 'ractices=

"he +est 'art of my 9o+ is that 6 am surroun$e$ +y frien$s, not collea0ues= Some of the +est frien$s 6?ve ma$e in life are 'eo'le %ho %or, %ith me every $ay=
1as5ar )as5eed
Su''ly Chain Mana0er

8Arc5citecture 6C6 2ulu: s'onsore$ a com'ilation of 'hoto essays a''lau$in0 the architectural herita0e of the city of @arachi, calle$ @F*rchcitecture= "he +oo, is an overvie% of @arachiFs rich architecture seen throu0h the lenses of some of )a,istanFs most $istin0uishe$ 'hoto0ra'hers= Arc5itect engage ent events ;e hoste$ 0ran$ evenin0s at the historic &aroo$ @hana Haveli in 5ahore an$ at the Mohatta )alace in @arachi as 'art of our architect en0a0ement 'lan= Eminent architects an$ in$ustrial 'artners atten$e$ these events featurin0 lea$in0 musicians from )a,istanFs film in$ustry= "hese events reiterate$ our commitment to our sta,ehol$ers an$ 'romise$ to stren0then e:istin0, time>teste$ 'artnershi's, cele+rate successes to0ether an$ su''ort each other in the $rive for "omorro%Fs *ns%ers "o$ayQ=

6n 2033, 6 loo, for%ar$ to %or,in0 %ith more -eal, interactin0 %ith more $iversity, contri+utin0 more to my +usiness an$ s'rea$in0 more colorT
#aad :asood 85an
*ssistant &ran$ Mana0er

6C6 2ulu: 'artici'ates in the *rch*sia 2030 E:'o

6C6 2ulu: architect en0a0ement event hel$ at a historic location in 5ahore

Em'loyees? chil$ren 'artici'ate in 8lo+al Color ;ee, $ra%in0 com'etition

2eco em'loyees a$$in0 color to their %or,s'aces $urin0 8lo+al Color ;ee,

@5at 5appened in Deco t5is year "C" Dulu! 25e atic Ca paign B A 25e e for *very Drea "his cam'ai0n centere$ on the ta0line P* "heme for Every 2reamF, an$ reinforce$ the 6C6 2ulu: +ran$ 'ersonality as the lea$in0 innovative one>sto' sho' $ecorative solution 'rovi$er in )a,istan= "he cam'ai0n su+tly intro$uce$ *,-o.o+el as the ne% 'arent com'any an$ hi0hli0hte$ 6C6 2ulu: 0roun$> +rea,in0 services such as Customer contact center (0100>2ulu:), color consultancy/interior $ecoration a$vice service an$ color stu$ios= *ll communication 'latforms inclu$in0 television, ra$io, ne%s'a'ers an$ out$oor e:em'lifie$ an assortment of colorful themes nation%i$e= Product Develop ent B "C" Painte! range e!pansion ;e intro$uce$ ne% 'ro$ucts into the 6C6 )ainte: ran0e %ith the launch of 6C6 )ainte: Iltra )rime an$ 6C6 )ainte: 2ura0uar$= "he 6C6 )ainte: 'ortfolio no% offers interior an$ e:terior emulsion, enamel, %all 'utty an$ sealer= ;ith these launches com'lete +efore 'aintin0 season this year %e loo, for%ar$ to servin0 a +roa$er customer +ase there+y resultin0 in a hi0her mar,et 'resence=

Glo/al Color @ee"he 0lo+al am+ition for the )aints &usinesses of *,-o.o+el is X*$$in0 Color to )eo'le?s 5ivesX, an$ in line %ith this, %e ha$ our first>ever 8lo+al Color ;ee,= "he %ee, %as $e$icate$ to learnin0 %hat Pa$$in0 colorF is a+out an$ e:'eriencin0 the transformative 'o%er of 'aint= "he o+9ectives of this event %ere to create Color *%areness, 'romote Color #utures > the 0lo+al style an$ transform our communities +y sharin0 our e:citin0 color ran0e= 1usiness Perfor ance ;e have +een mar,et lea$ers for over t%o $eca$es an$ en9oy a stron0 e<uity= "his year %e sa% im'rove$ volumes $es'ite slo%$o%n in the construction in$ustry an$ len0thenin0 of the maintenance 'aint cycle= ,perational *!cellence 2urin0 2030, %e set the follo%in0 recor$sG H &est ever 4i0ht #irst "ime (4#"), at A/C (for 2ecorative +usiness $urin0 .ovem+er 2030)= 4#" is a measure of manufacturin0 'rocess control > the hi0her the +etter H &est ever ri0ht first time at A1C (for Coatin0s +usiness $urin0 Luly, !cto+er & .ovem+er 2030) H &est ever cycle time at 3( hours (for 2ecorative +usiness $urin0 .ovem+er 2030)= Cycle time is a measure of ho% <uic,ly +atches are +ein0 manufacture$ (the lo%er the +etter)

C5allenges "his year %e continue$ to e:'erience the im'act of the 0lo+al economic slo%$o%n resultin0 in re$uce$ consumer +uyin0 'o%er= =uture outloo"he year 2033 is e:'ecte$ to %itness a 0ra$ual recovery after the economic slo% $o%n %ith the +usiness 0eare$ to%ar$s focusin0 on *,-o.o+elFs core value, P#ocusin0 on the CustomerFs #uture #irstF, %ith the launch of PMES > Mear of E:cellence in ServiceF for internal an$ e:ternal customers, ne% 'ro$uct $evelo'ments, an$ several customer> centric activities that %ill for0e ro+ust, sustaina+le an$ lon0>lastin0 relationshi's=

;hat e:cites me an$ ,ee's me motivate$ are the $iverse res'onsi+ilities 0iven to me over a 'erio$ of 1 years, %hich stren0then my s,ills an$ challen0e me=
=awad Ali Asif :ir>a
4e0ional Sales Mana0er Center

Glo/al Color @ee-

P"#

,ur focus; your success

*chievin0 a 'erfect re'air is one thin0, +ut creatin0 a smooth an$ efficient re'air 'rocess is another= ;hen it comes to 'ro> $uctivity an$ efficiency you nee$ more than 9ust 0oo$ 'aint= En> a+lin0 +o$ysho' 'rofita+ility has al%ays +een at the heart of the Si,,ens 'hiloso'hy= ;e offer the finest 'ro$ucts on the mar,et, to0ether %ith services, trainin0 an$ su''ortG a 'o%erful formula for 'erfect results an$ hi0h +o$ysho' 'rofita+ility= 6n a recession hit>mar,et %here mana0in0 cost remains a 'riority for customersS the focus of our team in 2030 %as on im'rovin0 +o$ysho' 'rofita+ility= Scans of each setu' %ere carrie$ out to allo% a revie% of overall functionin0, inclu$in0 'rocess analysis, cycle time an$ e<ui'ment= &ase$ on the scans, %e 0ave su00estions on ho% to im'rove each of these 'arameters, as %ell as a$vice on ho% to monitor an$ <uantify results= ;e 'rovi$e$ tools allo%in0 +o$ysho's to +enchmar, their 'erformance hel'in0 them un$erstan$ ho% this affects their 'rofita+ility= &y com+inin0 our 'assion an$ e:'ertise %ith the am+ition an$ ,no%le$0e of our customers, %e %or,e$ to%ar$s a common 0oal > increasin0 +o$ysho' 'rofita+ility an$ sustaina+ility= Hel'in0 customers run their +usiness %ith outstan$in0 success > to$ay, tomorro% an$ +eyon$S this is our 'hiloso'hy, this is %hat $rives us, this is ho% %e $o our +usiness=

)aints *utomotive & Aerospace Coatings

:ar-et ,verview "he automotive coatin0s mar,et si-e is estimate$ at million liters, %orth a''ro:imately 4s= 1(0 million an$ re'resente$ +y 2=2 million roa$>0oin0 cars= "hree La'anese car +ran$s $ominate the mar,et, %ith no formal a''roval system for automotive coatin0s to allo% their after>sales net%or, to e:ercise cost in$e'en$ence= !verall, )a,istanFs or0ani-e$ automotive coatin0s mar,et is still in its nascent sta0es, ho%ever, lo% incomes an$ a hi0h acci$ent ratio, $riven +y 'oor roa$ infrastructure an$ an a0in0 car 'ar, have 'rom'te$ stron0 0ro%th of the unor0ani-e$ sector over the last ten years= "his situation is further e:acer+ate$ +y a lac, of technical e$ucation an$ a%areness at the en$ user level= ;ith this limite$ focus on <uality, an$ a stron0 focus on costs (a mainstay characteristic of the unor0ani-e$ sector), less than 31C of the mar,et is re'resente$ +y "o' an$ Mi$>tier 'aints (t%o>com'onent technolo0y)= Mean%hile, 72C of the mar,et is still re'resente$ +y *utomotive Enamels, .C +ase$ color technolo0y an$ thinners= 1usiness Perfor ance *n inconsistent year for automotive refinish activities in )a,istan, 2030 %as mar,e$ +y %ea,enin0 consumer confi$ence, inconsistent %or,flo%s an$ an increase$ inci$ence of $o%n>tra$in0= #or our +usiness, ho%ever, a focus on customers, cost an$ cash hel'e$ ca'itali-e on this situation an$ reinvent the ima0e, commitment an$ loyalty for *,-o.o+elFs *utomotive Coatin0 +ran$s in the mar,et= * focus on im'rovin0 customer economics throu0h 'rocess an$ efficiency initiatives hel'e$ the +usiness 0ain mar,et share to $eliver a 20C increase in sales volumes, %hile a focus on cash 'rovi$e$ the +usiness %ith insulation a0ainst the li<ui$ity 'ressures common'lace in the mar,et, 'articularly 'ost the floo$s in U = *'art from the a+ove>mentione$ financial achievements, the +usiness also ma$e nota+le stri$es in 0ettin0 )a,istan reco0ni-e$ as a 'layer in the CV e:'ort mar,ets > 'rovi$in0 e:tensive technical su''ort an$ color solutions to )a,istanFs first e:'ort +us 'ro9ect an$ the refur+ishment of Ves'a Scooters for e:'ort to the 6talian mar,et= Product ;e launche$ the Si,,ens *utomotive Coatin0s 'ortfolio in )a,istan at the en$ of 2001, su''orte$ e:tensively +y value a$$e$ services aime$ at im'rovin0 $o%nstream +o$ysho' 'rocesses an$ 'rofita+ility= Colla+orative 'ro0rams %ith various !EM 'artners, cou'le$ %ith e:tensive technical su''ort 'rom'tin0 s%itchover from esta+lishe$ +ran$s, sa% Si,,ens 0ainin0 acce'tance an$ mar,et share at more than 7(C of the or0ani-e$ vehicle re'air o'erations across )a,istan=

Even after 30 years %ith the com'any, 6 relive the reasons 6 9oine$ 6C6 in the first 'laceS it?s one of the fe% com'anies %here you can +e 'art of a team $e$icate$ to re$raftin0 the fun$amentals of a +usiness +y investin0 resources in the $o%nstream in$ustry instea$ of only investin0 in the +ran$=
#yed " ran Kuta/
Mar,etin0 Mana0er

)ost the successful launch of Si,,ens, %e intro$uce$ 2ynaCoat in 2030= S'ecially $evelo'e$ for the mi$ mar,et in car re'air, 2ynaCoat offers a com'lete ran0e of <uality refinish solutions aime$ at the mar,et %ith lo%er levels of technolo0ical a$vancement= 2ynaCoat is +ase$ on the mi:in0 machine conce't that allo%s +o$ysho's an$ retailers to accurately $eliver any local an$ international color > +e it soli$, metallic or 'earl finish, %hile maintainin0 a lo% com'le:ity of stoc,= "he 2ynaCoat 'ro$uct assortment is su''lemente$ +y 'rofessional color $ocumentation an$ tintin0 formulaFs es'ecially $evelo'e$ for the mi$ mar,et in car re'air=

!ne of the +est thin0s a+out my 9o+ is that 6 mana0e chan0e > hel'in0 to +ri$0e the 0a' +et%een the customer an$ my team= Each $ay is therefore a ne% challen0e, 'rom'tin0 me to e:'lore an$ e:'an$ the +oun$aries of my o%n 'otential=
Ane-a =a5i a #ufi
*ssistant Mana0er Mar,etin0 Services

Custo er *ngage ent "he thrust of our efforts is to im'rove +o$ysho' 'rofita+ility +y $evelo'in0 customi-e$ service 'ro0rams for +o$ysho' o%ners= ;e have $evelo'e$ $ifferent 'ro0rams for $ifferent customer cate0oriesG

"he *utomotive team $urin0 the color>matchin0 'rocess

!ur automotive coatin0s +ein0 a''lie$ to a vehicle

,*:; #or our !EM customers, %e focuse$ on 'rocess $evelo'ment an$ hel'e$ them u'0ra$e the service levels of their after>sales service 'ro0rams= 2oyota; #or "oyota %e $evelo'e$ technical trainin0 'ro0rams aime$ at im'rovin0 +o$y sho' 'rofita+ility Fonda; *t Hon$a %e con$ucte$ %ee,>lon0 on>the>9o+ trainin0 sessions at each $ealershi' #u>u-i; ;ith Su-u,i %e carrie$ out re0ional trainin0 for service mana0ers an$ 'aint sho' mana0ers= "his trainin0 focuse$ on 'aint an$ color matchin0 1odys5ops; #or +o$ysho's the tar0et %as to im'rove cost an$ 'rofita+ility= *fter com'rehensive analysis of their overall functionin0, %e su00este$ im'rovements as %ell as 'rovi$in0 tools to assist +o$ysho's to +enchmar, an$ enhance their 'erformance an$ 'rofita+ility= Painters; "he most si0nificant issue in the local mar,et is that 'ainters have little or no formal trainin0= Most 'ainters enter the 'rofession as a''rentices an$ the tra$e is 'asse$ from master to stu$ent, resultin0 in a lac, of technical ,no%le$0e an$ stan$ar$i-e$ 'ractices=

"o a$$ress this concern, %e initiate$ a 'ilot 'ro0ram %ith one of our !EM customers, 6n$us Motors, in colla+oration %ith St )atric,Fs "echnical School, offerin0 a technical trainin0 $i'loma= "his 'ro0ram trains stu$ents on +o$y sho' 'rocesses an$ 'aint techni<ues= "he first +atch to 0ra$uate %as 'rovi$e$ a / month internshi' %ith these $ealershi's= ;e $evelo'e$ an$ e:ecute$ the 'ro0ram in entirety from $evelo'in0 sylla+i an$ manuals to 'rovi$in0 trainers= C5allenges ;ithin the vehicle re'air in$ustry, the 'enetration of the unor0ani-e$ mar,et, a se0ment %ith the lar0est mar,et share, remains the +i00est challen0e= *s hi0h com'etition an$ 'rofita+ility of o'erations remains a common issue across this se0ment, 'layers %ithin this se0ment are focuse$ on fin$in0 the lo%est 'rices for 'aints %ith little concern for <uality, actual costs of re'air, 'rocess efficiency or %aste= *n over>%helmin0 nee$ e:ists to hel' this sector transition from J'rice>sho''in0K an$ reinforce a culture focuse$ on cost re$uction +ase$ on technolo0ical a$vancement, <uality consciousness an$ 'rocess o'timi-ation=

A Vehicle 4e'air mi$ mar,et 1 Vehicle 4e'air )remium C Commercial Vehicle

7/ 2 3

"he +usiness has ta,en on this challen0e %ith the launch of its mi$>mar,et trainin0 'ro0rams, a +alance$ mi: of technical as %ell as commercial mo$ules, tar0etin0 the im'rovement of a%areness an$ e$ucation across a %i$e cross section of sta,e>hol$ers in this se0ment= =uture outloo6n a$$ition to e:'lorin0 o''ortunities to further e:'an$ our 'ro$uct an$ customer 'ortfolio, the +usiness 'lans to continue focusin0 on im'rovin0 the overall 'rofita+ility of its customers= #uture 'lans inclu$e the launchin0 of formali-e$ services 'ac,a0es, transcen$in0 the +o$ysho', to ai$ customers in areas of sales $evelo'ment, 'rocess $evelo'ment, material mana0ement, sustaina+ility, financial o'timi-ation an$ mar,etin0 effectiveness= #urther, 'ro0ress to en$>user $evelo'ment 'ro0rams shall also +e ma$e, %ith the e:'ansion of the )ainter Vocational "rainin0

;hile 2030 $elivere$ a lot of e:citement throu0h the o''ortunity to mana0e an$ e:cee$ tar0ets, 2033 'romises an even 0reater thrill to e:cel, %ith stretche$ res'onsi+ilities an$ tar0ets=
#5au-at Ali
4e0ional Sales Mana0er

'ro0ram from its 'ilot sta0e to lar0er 'ro0rams in @arachi, 6slama+a$ an$ 5ahore=

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E Paints E 5&

,n t5e surface
;hen you loo, at a ne% car, one of the first thin0s you notice is the finish= !n any vehicle, the coatin0 is the most visi+le 'art of the 'ro$uct, an$ its $ura+ility an$ aesthetic a''eal are of 0reat im'ortance= ;orl$ class car manufacturers inclu$in0 our cus> tomers )a, Su-u,i Motor Com'any an$ 6n$us Motor Com'any, have strin0ent <uality re<uirements, an$ for many years have mainly use$ La'an>+ase$ 'aint +ran$s= "o $evelo' our +usiness in this mar,et, our 4&2 team %or,e$ har$ to $evelo' ne% coatin0s of hi0h <uality an$ $ura+ility, an$ after successfully com'letin0 the testin0 'hase, %e %ere a+le to offer our customers a hi0h <uality coatin0 solution that is ma$e in )a,istan, %ith +enefits com'ara+le to any %orl$ class 'ro$ucts= "his achievement %as further +uilt u'on +y our Sales "eam, %hich mana0e$ to ma,e +rea,throu0hs into the La'anese 'assen0er vehicle se0ment= &y offerin0 a$$e$ +enefits to the client such as assure$ availa+ility of su''lies an$ technical services, %e im'rove$ our value 'ro'osition= Currently over 70 vehicles from )a, Su-u,i Motor Com'any coate$ %ith our locally>$evelo'e$ %hite to' coat have +een rolle$ out in the mar,et for fee$+ac, an$ evaluation 'ur'oses= More than 3(0 vehicles have +een coate$ %ith our to'coats at 6n$us Motor Com'any an$ a$$itionally %e have secure$ an or$er for 'lastic %hite to'coat= "hese si0nificant $evelo'ments %ill 'rovi$e us 0roun$ to further e:'an$ our share in the to' coats se0ment at +oth 6MC an$ )SMC, %hile ma,in0 our +usiness more sustaina+le=

)aints "ndustrial
:ar-et ,verview ;e o'erate in a $iversifie$ mar,et an$ our vast 'ro$uct ran0e 'rovi$es solutions for 'assen0er cars, motorcycles, commercial vehicles an$ tractors= ;e also offer 'ro$ucts in the a''liances an$ the 'ro9ects se0ment= !ur customers are ma9or automotive manufacturersS )a, Su-u,i Motor Com'any ()SMC) an$ 6n$us Motor Com'any (6MC) in the 'assen0er car se0ment, Hino an$ .issan in the commercial vehicle se0ment, *H5, 2a%oo$ Mamaha an$ Su-u,i in our motorcycle 'ortfolio, an$ Millat an$ *l 8ha-i in the tractor se0ment= !ur relationshi' %ith some of these customers e:ten$s +eyon$ t%o $eca$es= ;e also cater to ma9or 0overnment an$ 'rivate 'ro9ects in the country, such as e:'ansion of the En0ro 'lant, &ena-ir 6nternational *ir'ort, tan, linin0 at )a,istan 4efinery, roa$ line mar,in0s for the 5ahore>6slama+a$ Motor%ay an$ many others= Custo er =ocus Atlas Fonda Custo er #ervice " prove ent Sharin0 our +est 'ractices +enefits our customers, an$ so in 2030, %e 'rovi$e$ trainin0 to the line staff (mostly com'risin0 of 'ainters) at *tlas Hon$a= "his not only create$ a com'etitive e$0e, +ut also tau0ht our customers the efficient use of 'aintin0 techni<ues an$ e<ui'ments as %ell as health, safety an$ environmental a%areness= :illat 2ractors #ervice level i prove ents 6n recent years numerous initiatives have +een un$erta,en to a$$ress the chan0in0 re<uirements of Millat "ractors 5imite$ (M"5), a ,ey customer for many years= "o im'rove thin0s further, this year %e too, the initiative of 'rovi$in0 more in>$e'th customer su''ort= * full>time $e$icate$ resource %as $e'loye$ at the M"5 'ro$uction line to carry out 're> treatment an$ 'aint line testin0 $aily, an$ to ensure activities %ere efficiently mana0e$= * la+oratory %as also set u' at the site %here solutions are 're'are$ at any time= M"5 no% has on>line technical service rea$ily availa+le to atten$ to any issue that arises= *lon0 %ith these efforts, line au$its an$ on 9o+ trainin0s for 'aint line staff are also con$ucte$= :easuring custo er satisfaction @ee'in0 our customers en0a0e$ an$ satisfie$ is one of the mainstays of our +usiness= "o measure ho% successfully %e meet their nee$s, %e hel$ t%o customer satisfaction surveys= 4esults sho%e$ that our service levels are im'rovin0, havin0 increase$ from 7A C in #e+ruary to 13C in !cto+er= ;e strive to continue to enhance our service levels for the +enefit of our customer= 1usiness Develop ent Fydera/ad :otorcycle :ar-et Motorcycles are a 'rimary means of trans'ort in the rural areas of )a,istan, an$ this se0ment has si0nificant volume= 6t is also a challen0in0 environment as Hy$era+a$Fs hu0e motorcycle mar,et has many manufacturers o'eratin0 in it, +oth in the hi0h an$ lo%>tier se0ments= !ur focus has +een hi0h in this se0ment, an$ %e have +e0un actively servicin0 the nee$s of this mar,et %ith lea$in0 'layers li,e 2S Motors, one of the lar0est motorcycle an$ three>%heeler manufacturers in Hy$era+a$, 'referrin0 to use our 'ro$ucts an$ services=

Comin0 to %or, each $ay ,no%in0 that there?s a %orl$ of o''ortunities 9ust %aitin0 to +e sei-e$, an$ %or,in0 %ith our teams to ca'itali-e on these in +etter, more sustaina+le %ays is the e:citin0 'art of my 9o+T
:o5sin )3 $a+vi
Mar,etin0 Mana0er

"he 6n$ustrial "eam %ith !EM manufacturers 6n$us Motor Com'any

"his un'rece$ente$ success allo%e$ us to esta+lish ourselves in 'lace of 'revious +ran$s at 2S Motors in 'articular an$ in the motorcycle se0ment in Hy$era+a$ at lar0e, over the 'ast fe% years= ;e inten$ to continue our efforts to secure other Chinese manufacturers in this $ivision an$ +ecome the lea$in0 su''liers in this tar0et mar,et= "nternational /rand launc5ed ;e successfully close$ our first sale of *,-o.o+elFs P6nternationalF +ran$ in the Marine Coatin0s se0ment= "he first sale %as ma$e to the @arachi Shi'yar$ & En0ineerin0 ;or,s to coat )a,istan .avyFs S'ecial Itility "an,er Shi's= "hese inclu$e hi0hly s'eciali-e$ 'aints such as the 6ntersmooth ran0e, %hich is a hi0h 'erformance, "ri+utyltin ("&") free, self 'olishin0 co'olymer (S)C) antifoulin0 system %ith 'atente$ Co''er *crylate technolo0y as %ell as the 6ntershiel$ ran0e %hich is a li0ht colore$, a+rasion resistant, aluminum 'ure e'o:y coatin0 0ivin0 e:cellent lon0 term anticorrosive 'rotection an$ lo% tem'erature a''lication ca'a+ility=

for evaluation an$ fee$+ac,= !ur %hite to' coat for 'lastic 'arts %as also a''rove$ for a''lication on more than 300 vehicles at 6n$us Motor Cor'oration for their lea$in0 +ran$, Corolla= A->o$o/els "nterseal used at Pa-istan )efinery ?i ited )a,istan 4efinery 5imite$ ()45) is no% the first refinery in )a,istan to +e usin0 *,-o.o+elFs surface "olerant E'o:y 6nterseal /70HS= 6nterseal is a su'erior coatin0 solution %hich %ill +e a''lie$ in hi0hly flamma+le -ones an$ %ill si0nificantly increase time +et%een maintenance activities= $ew auto otive line uses $i5on Par-eri>ing Master Motors Cor'oration, a Chinese truc, manufacturer, %as in the 'rocess of ac<uirin0 Mitsu+ishi licensin0 in )a,istan an$ re<uire$ 're>treatment metal sheets of international stan$ar$s= Seein0 this as an o''ortunity for +usiness $evelo'ment %e succee$e$ in 0ettin0 them to use .ihon )ar,eri-in0 technolo0y for their 'retreatment, not only for their u'comin0 La'anese +ran$ +ut also for their Chinese +ran$= Ceilcote "his year %e close$ our first ever sale of *,-o.o+elFs Ceilcote #la,eline coatin0s in )a,istan= "hese hi0hly s'eciali-e$ coatin0s %ere sol$ to 5otte )a,istan for their chemical stora0e tan,s= Ceilcote #la,eline is a fla,e fille$ novolac vinyl ester coatin0

%hich e:hi+its e:cellent resistance to +oth ali'hatic an$ aromatic or0anic solvents an$ to concentrate$ or0anic an$ inor0anic aci$s= 6t offers outstan$in0 chemical resistance %ith <uic, turnaroun$ for service an$ also hi0h tem'erature resistance= Ceilcote is 0eare$ to%ar$s clients that are loo,in0 for lon0evity in corrosion 'rotection or are storin0 e:tremely corrosive materials= C5allenges ;hile %e continue$ our focus on e:'lorin0 ne% mar,ets an$ customi-in0 solutions for our e:istin0 +ase, the year 2030 %as challen0in0= )assen0er cars an$ tractors 'erforme$ %ell, ho%ever in the secon$ half of the year tractor an$ motorcycle sales %ere affecte$ +ecause of the floo$s= * 0eneral economic slo%$o%n %as e:'erience$ %ith fe%er ne% 'ro9ects than +efore= =uture outloo;e aim to continue our focus on 'rovi$in0 ne% an$ innovative solutions an$ intro$ucin0 the 'ortfolio *,-o.o+el offers= ;e 'lan to e:'lore 'ac,a0in0 coatin0s after a successful trial 'ro0ram in 2030= 6t is e:'ecte$ that this +usiness %ill a$$ to our or0anic 0ro%th outloo, in 2033=

1rea-ing into t5e ,*: :ar-et #ocuse$ efforts +y our 4&2 an$ commercial teams have le$ to the first or$er for the line run for locally 'ro$uce$ %hite to' coats at )a,istan Su-u,i ()SMC)= More than 70 vehicles have +een coate$ %ith our %hite to' coat an$ have +een rolle$ out into the mar,et

=ro left Sa99a$ *= 5o$hi Salman *hme$ Mohsin 4= .a<vi Muhamme$ 6<+al *s0her SheraSamiullah Uureshi Shahi$ 6slam *+$ul 4ehman *leem

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E Paints E 55

Going green
6n a %orl$ of limite$ resources, every little +it counts= ;e ma,e ourselves more sustaina+le %hen %e are a+le to achieve more +y consumin0 less, an$ this is e:actly %hat %e have accom'lishe$ %ith )ro$uct Salva0e= "he conce't of )ro$uct Salva0e $evelo'e$ %hen, as 'art of our continue$ sustaina+ility focus %e $eci$e$ in 2001, to try an$ re$uce our !ff S'ecification !ut'ut (!S!)= *fter e:tensive technical an$ commercial %or,, it %as a0ree$ that the most sustaina+le %ay to $o so %as to recycle !S! into our 'rimary 'ro$uct, )olyester #i+er= ;hile the $evelo'ment of this 'ro$uct %as successful, %e ha$ stru00le$ to esta+lish a sustaina+le customer +ase for it= 6n 2030 therefore, %e re>evaluate$ our strate0y to ma,e the venture more sustaina+le an$ 'rofita+le= ;e $i$ this +y re$ucin0 the cost of 'ro$uction (+y increasin0 the ratio of !S! use$), an$ +y creatin0 a value 'ro'osition for our customers= "he 'ro$uct %as then %i$ely intro$uce$ in the mar,et an$ trials %ere con$ucte$ at over ( customer sites= &y the en$ of U %e %ere a+le to sell an$ achieve the 'ro$uct 'otential= )ro$uct Salva0e hel'e$ $eliver si0nificant +enefits, +oth to our +usiness an$ to our customers in the form of im'rove$ ra% material efficiency at our 'lant as %ell as im'rove$ 'rofita+ility for us an$ our customers= "his initiative also ma$e it easier for us to +uil$ stoc,s at the time of shut$o%n ena+lin0 effective inventory mana0ement for shut$o%n time= "o$ay, %ith its im'rove$ cost an$ lar0e customer +ase, )ro$uct Salva0e has +ecome a sustaina+le variant in the "erylene line that %ill continue to su''ort our +usiness an$ serve customers=

li$

&'

Polyester

My com'any is a 0reat 'lace to %or,, create an$ innovate, an$ ma,es me feel more fulfille$, creative an$ 'ro$uctive in my 9o+=
=aisal A-5tar
&usiness Mana0er

25e Polyester #taple =i/er C5ain "he )S# in$ustry in )a,istan is the fourth lar0est in *sia, (re'resentin0 an investment of IS2 (00 million 'lus in )a,istan), an$ forms the +ac,+one of the $omestic te:tile in$ustry, %hich in turn accounts for /0C of total e:'orts= )S# is sol$ to the s'innin0 in$ustry %here it is s'un into yarn, %hich is then %oven into fa+ric use$ to manufacture 0oo$s such as clothin0, an$ home te:tile 'ro$ucts= )S# is a ,ey value a$$er as more than (0C of )S# consume$ locally is eventually e:'orte$ in one form or the other= "he t%o ma9or ra% materials in )S# 'ro$uction are )ure "ere'hathalic *ci$ ()"*) an$ Mono>Ethylene 8lycol (ME8)=

:ar-et ,verview )"* an$ ME8 are $erivates of cru$e oil an$ in 2030, reache$ historical hi0h 'rice levels on the +ac, of stron0 $eman$ an$ sur0in0 oil an$ fee$stoc, costs= *ccor$in0ly the 'rice of )S# rose re0ionally an$ locally, further +olstere$ +y healthy $o%nstream $eman$, es'ecially in China= )oor cotton cro's in China an$ )a,istan an$ hi0h $eman$ also $rove cotton 'rices to all time hi0hs ma,in0 )S# hi0hly attractive in com'arison an$ fuellin0 $eman$ further= Hystorically, stron0 $omestic com'etition an$ thin mar0ins cause$ $omestic manufacturers inclu$in0 6C6 )a,istan 5imite$ to focus on efficiency im'rovement an$ cost re$uction initiatives resultin0 in an in$ustry %hich is hi0hly efficient com'are$ to 0lo+al +enchmar,s=

2es'ite challen0in0 environmental an$ economic situations, mar,et con$itions have +een stron0 an$ there has +een a 0ro%th in the in$ustry= 6n the 'ast, there has also +een a rationali-ation of the less efficient s'innin0 in$ustry= * ,ey 'ositive as'ect of this %as that less efficient units close$ $o%n %ith only me$ium to lar0e>scale, ener0y>efficient, ro+ust s'innin0 mills remain0 o'erational= "his encoura0es a more $isci'line$ an$ 'rofessional a''roach in the in$ustry?s future o'eration=

"he +est 'art of my 9o+ is the e:citement of a''lyin0 an$ $evelo'in0 my s,ills to $o somethin0 ne% an$ challen0in0 every $ay, %ith the free$om of $oin0 it my o%n %ay=
#5a yl Gppal
E&6 Su''ort Mana0er

58 E Polyester E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

!S! > !ff S'ecification !ut'ut 'ro$uct

* 'icnic %ith the s'ecial chil$ren visitin0 our )olyester site

"he Continuous )rocess +atch line

)olyester +ales in the %arehouse 5orem 6'sum Etue Enisit #acili<uis Illan$io=

1usiness Perfor ance Mar,et con$itions for the te:tile in$ustry hel$ stron0 throu0hout most of the year $es'ite the floo$ crisis, ener0y shorta0es an$ the recent rise in fi+er an$ fee$stoc, costs= &len$ economics has continue$ to favor )S# lar0ely +ecause of the 0a' +et%een cotton an$ 'olyester 'rices cause$ +y a cotton su''ly shorta0e= Conse<uently, the +usiness achieve$ its hi0hest ever sales an$ sol$ an im'ressive 32A,7 7 M" of )S# %hich %as /, (/ M" more than sales in 200A= 1usiness Develop ent Product #alvage ;e successfully recycle$ our !ff S'ecification !ut'ut 'ro$uct (!S!) into a via+le, 'rofita+le 'ro$uct= 2u++e$ )ro$uct Salva0e, this innovation has resulte$ in im'rove$ ra% material efficiencies an$ 0reater 'rofita+ility for +oth our +usiness an$ our customers= *!tra ?ong =i/er B *n5anced productivity 4ecently, increasin0 'ro$uction costs, lo%er mar0ins an$ increasin0 com'etitiveness have all com'elle$ s'innin0 mills to loo, for %ays to +ecome more efficient an$ cost effective in a sustaina+le %ay= #i+er cut>len0th %as an area %e $eci$e$ to e:'lore= "ra$itionally fi+er len0ths ran0in0 from 2mm to (3mm have +een use$ in the s'innin0 in$ustry, althou0h the 0eneral rule is that the lon0er the cut>len0th of the fi+er, the hi0her its 'ro$uctivity= Ho%ever, technical $ifficulties at the mills limit the len0th to (3mm=

2evelo'ment %or, +y our technical services has resulte$ in the removal of technical $ifficulties at mills an$ hence s'innin0 mills are e:'ecte$ to increase their 'ro$uctivity +y 32C %ith the use of this fi+er= ;e ho'e to also enhance our fi+er sales on a sustaina+le +asis, than,s to this innovative ne% 'ro$uct= C5allenges Hi0h inflation an$ the overall $e'resse$ economic situation cou'le$ %ith ener0y crisis in the country %ere our main challen0es= 2ue to the Co>8en 'ro9ect commissione$ in 2001, the +usiness %as a+le to 'artly offset $ifficulties create$ $ue to ener0y an$ 'o%er shorta0es= Ho%ever, our customers %ere 0reatly affecte$ +y lac, of 'o%er an$ 0as availa+ility affectin0 continuity of their o'erations= !verall the cost of $oin0 +usiness in )a,istan escalate$=

=uture outloo8oin0 for%ar$, fee$stoc, 'rices are forecast to +e firm $ue to ti0htness in )"* an$ ME8 su''lies an$ stron0 $o%nstream $eman$= )olyester $eman$ in *sia is sho%in0 no si0ns of sta0nation an$ monetary measures in China are e:'ecte$ to restrict s'eculation in an attem't to re$uce 'rice volatility= ;hat is %orth seein0 is the consumer?s a+ility to 'ay the hi0h 'rices of value>a$$e$ fa+rics= 2omestic mar,et con$itions are e:'ecte$ to remain healthy an$ 'rices to stay sta+le to firm= 6n a$$ition, international an$ $omestic cotton 'rices are antici'ate$ to remain at hi0h levels $ue to 'ro$uction estimates +ein0 lo%er than 'reviously forecaste$ an$ uncertainty re0ar$in0 e:'orts of 6n$ian Cotton=

"he 'eo'le 6 %or, %ith su''ort an$ encoura0e my 'ersonal an$ 'rofessional $evelo'ment, an$ my i$eas are value$, %hich is very motivatin0=
A al Pirac5a
Commercial "rainee !fficer

Decades of Develop ent

"he +ottom line is im'ortant to us, +ut so is the +i00er 'icture= ;e may +e the countryFs lar0est 'ro$ucers of So$a *sh, an$ this is an achievement %e are certainly 'rou$ of= Ho%ever, our So$a *sh +usiness is a+out a lot more than 9ust our annual 'ro$uction ca'acity of (0,000 tons= !ur +usiness starte$ out %ith a 'ro$uction ca'acity of 31,000 tons 'er annum in 3A44, at a time %hen )a,istan %as yet to come into e:istence= "o$ay %e continue to +e the mar,et lea$ers for this ,ey in0re$ient an$ 9ust as im'ortantly, %e are a lifeline of sorts for the remote rural community of @he%ra %here our o'erations are +ase$= !ver the $eca$es %hile %e +uilt our 'lant ca'acity to a %orl$ class level +ase$ on the most mo$ern e<ui'ment, %e also continuously %or,e$ for the +etterment of our community= ;e $i$ this initially +y 'rovi$in0 em'loyment to a lar0e num+er of resi$ents of the im'overishe$ localities of @he%ra an$ )in$ 2a$an @han, hel'in0 to raise the livin0 stan$ar$s of the community= 6n a$$ition, %e run various community %elfare an$ $evelo'ment initiatives= "hese initiatives in the health, e$ucation an$ environment sectors e:ten$ from @he%ra an$ )in$ 2a$an @han, to the a$9oinin0 areas= Some of our com'anyFs ma9or community an$ sustaina+ility initiatives over the $eca$es are +ase$ here= @he%ra to$ay is vastly $ifferent from the +arren, slee'y small to%n nestle$ amon0st the salt ran0e in the 3A40Fs %hen %e first starte$ o'erations= 6t has flourishe$ in to a $evelo'e$ center %ith economic activity an$ im'rove$ lifestyle for its inha+itants= 8enerations have 'ro0resse$ an$ 0one on to chan0e their lives for the +etter= ;e have firm +elief that true $evelo'ment for any +usiness is only 'ossi+le %hen all those associate$ %ith it $evelo' alon0si$e=

#oda As5
;e enter 2033 %ith e:citin0 0oals of +uil$in0 em'loyee en0a0ement an$ a hi0h 'erformance culture=
)i>wan A>ie>
Human 4esource Mana0er

1usiness ,verview "he so$a ash mar,et in )a,istan continues to evolve, an$ %e ,no% that our $eca$es of e:'erience in the So$a *sh &usiness are an asset in the face of chan0in0 mar,et $ynamics= Some of our ,ey assets are the lon0>term relationshi's %ith our customers, an$ in line %ith our value P#ocusin0 on our customerFs future firstF, %e are 'rou$ to 'rovi$e customer>centric solutions, +y $eliverin0 consistently hi0h <uality 'ro$ucts on time %henever the customer nee$s them= ;e currently manufacture t%o $ifferent varieties of So$a *sh an$ foo$ 0ra$e 4efine$ So$ium &icar+onate %hich is a $erivative of So$a *sh= ?ig5t #oda As5; Ise$ as a ra% material in $eter0ents, so$ium silicate, soa', 'a'er, chemicals an$ te:tile in$ustries Dense #oda As5; Ise$ mainly as a ra% material in the 0lass an$ so$ium silicate in$ustries )efined #odiu 1icar/onate; Ise$ as +a,in0 so$a, an$ also as an in0re$ient in several in$ustries inclu$in0 'oultry/cattle fee$, leather tannin0 an$ the te:tile in$ustry "o sum u', so$a ash remains a main com'onent in a %i$e ran0e of en$ 'ro$ucts, inclu$in0 0lass (+oth for construction an$ $omestic 'ur'oses), 'a'er, te:tiles, soa's, $eter0ents an$ househol$ cleaners=

Contri/ution to econo y ;e mainly utili-e in$i0enous ra% materials in our 'ro$uction an$ save hun$re$s of millions in forei0n e:chan0e for the country throu0h im'ort su+stitution of an e:tremely im'ortant in$ustrial ra% material= ;e are also reco0ni-e$ as one of the lar0est ta: 'ayers in the area an$ have contri+ute$ a+out 4s= (=/ +illion to the national e:che<uer $urin0 the last $eca$e alone= ;e actively contri+ute to the u'lift of the community %here %e o'erate +y 'rovi$in0 em'loyment to a lar0e num+er of 'eo'le $irectly or in$irectly= Most of our em'loyees are resi$ents of this relatively im'overishe$ an$ %ater starve$ rural area of @he%ra an$ )in$ 2a$an @han %ith very little alternate em'loyment o''ortunities= *'art from +enefitin0 $irectly throu0h association %ith 6C6 )a,istan, the local community also +enefits from the in$irect effect on the local economy throu0h an increasin0 num+er of contractors, trans'orters etc %ho have flourishe$ throu0h their association %ith our +usiness= Co unity Develop ent !ver the years, in a$$ition to +ein0 a ma9or source of em'loyment an$ income for a si0nificant num+er of resi$ents, %e have run several lon0>stan$in0 community %elfare an$ $evelo'ment initiatives to +enefit the 'eo'le= *ducation @innington #c5ool "he ;innin0ton School is locate$ %ithin our 'lant 'remises an$ 'rovi$es <uality e$ucation to our em'loyees? chil$ren as %ell as to chil$ren from the local community= ;e also e:ten$ su''ort to local 0overnment run schools in the area %ith the aim of im'rovin0 the facilities an$ <uality of e$ucation= *lon0 %ith this, %e have +een assistin0 *l>&eirooni Colle0e, one of the fe% institutions offerin0 'ost>matriculate stu$ies= ;e also have a scholarshi' 'ro0ram for

$eservin0 chil$ren in the community %here %e 'rovi$e financial assistance ena+lin0 them to 'ursue their aca$emics= Fealt5 Progra ,utpatient care at @innington Fospital 5ocate$ %ithin our @he%ra 'remises, this hos'ital 'rovi$es a free out'atient facility to the local community, %hich 0iven the remote location of @he%ra, is a hi0hly value$ service, much a''reciate$ +y the local community= *''ro:imately 00 'atients are catere$ to +y our hos'ital every month= !ur hos'ital team also 'rovi$es a vital immuni-ation service in accor$ance %ith 0overnment immuni-ation 'ro0rams in the area= :ont5ly *ye Clinics Since 3AA3, %e have con$ucte$ Sur0ical Eye Clinic 'ro0rams in colla+oration %ith the 5ayton 4ehmatullah &enevolent "rust (54&") every month= !ur lon0est>runnin0 healthcare initiative, this eye cam' is o'en to the 'u+lic, an$ inclu$es !)2 consultations as %ell as ma9or an$ minor sur0eries an$ refractions= "hese clinics are hel$ over three $ays each month an$ 33,AA2 ma9or an$ minor sur0eries an$ 3(,2A2 refractions have +een carrie$ out till year en$ 2030= 6n a$$ition, 33/,A11 out'atients have also +een treate$= )atients o'erate$ on for cataract 'ro+lems are im'lante$ %ith free intra>ocular lenses (6!5s=) "nfrastructural Develop ent < #upport Drin-ing @ater for 85ewra 5i,e many other areas in the salt ran0e, clean $rin,in0 %ater is an e:tremely scarce resource in an$ aroun$ @he%ra as the un$er0roun$ %ater is +rac,ish %ith hi0h salinity $ue to the 'ro:imity of salt ran0e= ;e try to hel' the local community +y su''lyin0 this essential nee$ free of char0e= Eleven %ater su''ly 'oints installe$ aroun$ our %or,s 'rovi$e a''ro:imately 2 ,000 0allons of clean $rin,in0 %ater to the resi$ents of @he%ra an$ the vicinity every $ay= 6n a$$ition the &usiness is hel'in0 the local 0overnment to $evelo' a lon0 term %ater su''ly scheme

*t So$a *sh, %e have customers from $iverse in$ustries from 0lass to 'a'er, an$ from $eter0ents to te:tiles= 6 en9oy the challen0es of 'rovi$in0 customi-e$ solutions for each of them=
Aa ir C5aud5ry
.ational Sales Mana0er

;innin0ton Hos'ital, %here our free eye cam's are hel$ every month

Stu$ents of the ;innin0ton School $urin0 the #loo$ 4elief Cam'ai0n

"he ne%ly re'ainte$ @he%ra rail%ay station

)ro9ect 8reen at our So$a *sh site

for the area throu0h financial assistance an$ a$ministrative su''ort= =ire =ig5ting #ervices !ur fire fi0htin0 $e'artment is the only resource of its ,in$ in the entire area an$ our team of fire fi0hters is re0ularly calle$ u'on to 'rovi$e assistance in cases of an emer0ency= 2urin0 the last t%o years many inci$ents of ma9or fires in the area %ere han$le$ +y our volunteers= 85ewra )ailway #tation ;e have un$erta,en the u',ee' an$ maintenance of the @he%ra 4ail%ay Station to $emonstrate our commitment to the to%n an$ the 'eo'le %ho use this facility= 6n a$$ition %e re0ularly un$erta,e free maintenance an$ u',ee' of the areas a$9oinin0 our %or,s= #-ill Develop ent 69ocational 2raining Center7 Set u' in 3A1A, our 5a$ies Vocational Center in @he%ra im'arts valua+le self em'loyment s,ills li,e ,nittin0, stitchin0, em+roi$ery etc to youn0 0irls from the community, an$ is mana0e$ +y volunteers from the families of our So$a *sh team +ase$ in @he%ra= Moun0 0irls from the community floc, to the center enrollin0 the si: month lon0 course the center offers= Many of those traine$ have 0one on to esta+lish similar small centers %hich are runnin0 successfully= 1usiness Develop ent *lthou0h the main focus of our &usiness remains the $omestic mar,et in )a,istan, $urin0 the last t%o years %e have successfully

esta+lishe$ our 'ro$ucts in the e:'ort mar,ets to earn forei0n e:chan0e for the country= "he consistent acce'tance of our 'ro$uct in international mar,ets reaffirms our status as a relia+le su''lier of hi0h <uality so$a ash= ;hile the +usiness has a num+er of o''ortunities availa+le to increase volumes, e:'orts ha$ to +e restricte$ recently $ue to the ener0y crisis in the country as 0as curtailment im'acts our 'ro$uction= 1usiness Perfor ance 8lo+al So$a *sh $eman$ %itnesse$ some recovery in 2030 +ase$ on hi0her consum'tion in emer0in0 mar,ets China, 6n$ia an$ &ra-il $urin0 the first three <uarters of the year= 2eman$ $urin0 U4 has ho%ever %itnesse$ a sli0ht $ecrease $ue to some $ecline in China, resultantly the full year mar,et 0ro%th is e:'ecte$ to +e a+out 4>(C= 2omestic So$a *sh mar,et remaine$ affecte$ as $o%nstream in$ustrial activity %as severely affecte$ +y the un'rece$ente$ 0as curtailments in 2030 %hich 'ersiste$ throu0hout the year, unli,e 'revious years %hen curtailment %as $one $urin0 %inter months only= "he overall 0as su''ly %as at an avera0e 2(C lo%er than last year an$ cause$ ma9or $isru'tions across all in$ustries= "he $omestic mar,et thus continues to remain in an over su''ly situation as $omestic 'ro$uction ca'acity is si0nificantly hi0her than $omestic $eman$= "his is further a00ravate$ +y $um'in0 of so$a ash into )a,istan, %hich is a$versely affectin0 the $omestic in$ustry=

*ll ma9or in$ustrial consumers of so$a ash, es'ecially 8lass, Silicate an$ )a'er in$ustries %ere affecte$, lea$in0 to a $ecline in their consum'tion of so$a ash= Ho%ever, the ne0ative im'act of lo%er consum'tion +y in$ustrial se0ment %as some%hat miti0ate$ +y 0ro%th in the +a-aar se0ment, %hich +enefitte$ from a 0ro%th in the unor0ani-e$ $eter0ent sector= !verall sales volumes $urin0 the year %ere hi0her +y 32 'ercent com'are$ to 200A, 'rimarily on the +ac, of e:'orts to various countries in the re0ion as the +usiness successfully esta+lishe$ itself in the e:'ort mar,et= &usiness o'erations %ere severely im'acte$ +y 0as su''ly curtailment to the %or,s an$ the num+er of e<uivalent -ero 0as $ays increase$ from /0 in 200A to 34 in 2030= !'eratin0 result %as 3 'ercent lo%er than 200A as the im'act of hi0her revenue %as $ra00e$ $o%n +y the hi0her usa0e an$ hi0her cost of e:'ensive furnace oil $urin0 0as outa0es= !n account of e:cessive 0as outa0es, the +usiness ha$ to incur an a$$itional cost of 4s (01=23 million on alternate fuels com'are$ to 200A= "he focus throu0hout the year %as on o'timi-in0 of o'erational efficiencies an$ strict cost control in all areas= 8oin0 for%ar$ 0as curtailments are e:'ecte$ to increase an$ %ill ,ee' the in$ustrial activity $e'resse$, im'actin0 so$a ash $eman$ in the country= 6n a$$ition li<ui$ity issues +ein0 face$ +y in$ustrial customers are +ecomin0 another area of concern= 2um'in0 of So$a *sh into )a,istan from certain countries also remains a ,ey concern an$ your Com'any has file$ an anti>$um'in0 a''lication %ith the .ational "ariff Commission, see,in0 an investi0ation into this 'ractice an$ initiation of investi0ation is e:'ecte$ in the near future= ;e are also loo,in0 at $evelo'in0 a lon0 term solution to miti0ate the a$verse affects of %orsenin0 0as outa0es in the comin0 years=

6 have ha$ the uni<ue 'rivile0e of %or,in0 in three +usinesses in as many years= My current 'osition in the So$a *sh &usiness motivates the 'rocess en0ineer an$ the scientist in me to fin$ ne% solutions to challen0es every $ay=
Atti-a 85an
*ssistant Mana0er 2evelo'ment

A vital part of everyday life

#rom mayonnaise to as'halt, sou' to soa', an$ 'lastics to fa+rics, our chemical in0re$ients 0o into the ma,in0 of a s'ectrum of 'ro$ucts that are truste$ +y customers every $ay= *t our Chemicals +usiness, %e ta,e 'ri$e in the fact that %e service 'ractically every in$ustry in the countryT !ur chemicals are essential in all ,in$s of manufacturin0 'rocesses an$ 'ro$ucts ran0in0 from refri0erators an$ car seats to home insulation, a$hesives, 'aint, cro's, 'etrochemicals, a0riculture, te:tile chemicals etc= ;e %or, %ith truste$ technolo0y 'artners across the 0lo+e an$ +rin0 to )a,istan lea$in0 e$0e innovative solutions= !ur chemical in0re$ients touch lives in small +ut meanin0ful %ays every $ay an$ this is %hat challen0es us an$ 'rom'ts us to continuously innovate an$ convert ne% i$eas into customer solutions= ;e offer an assortment of chemicals to manufacturers across )a,istan that 0o into ma,in0 'ro$ucts use$ +y millions of 'eo'le= ;e value the trust 'lace$ in us an$ are 'rou$ to +e such a vital 'art of $aily life=

C5e icals
6 have s'ent an ama-in0 time at 6C6= Every ne% $ay is a challen0e that +rin0s ne% o''ortunities an$ the learnin0 curve is e:'onential=
Ali 8a al
Mar,etin0 Mana0er, 8eneral Chemicals

1usiness #tructure ;e cater to almost every in$ustry an$ are of ,ey value in various in$ustrial 'rocesses= "he +usiness has t%o se0mentsG General C5e icals ;e have a tra$in0 +usiness %hich o'erates li,e a tra$in0 house, %ith 'ro$ucts sol$ on +oth in$ent an$ E: Stoc, +asis= !ur 'ro$uct ran0e caters to many in$ustries inclu$in0 'aint, %ater treatment, foo$ an$ +evera0e etc= ;e also su''ly 'olyurethanes, use$ 'rimarily as insulation an$ also in fle:i+le foam seatin0S ri0i$ foam insulation 'anelsS hi0h 'erformance a$hesives an$ sealants etc= !ur main customer se0ment is the a''liances in$ustry= ;e also sell solvents to oil, ru++er a$hesives an$ a''liances in$ustries= #pecialty C5e icals "his se0ment manufactures a ran0e of a$hesives, 'rimarily the %hite 0lue ran0e Cala+on$, use$ in the %oo$ an$ furniture 6n$ustry, an$ a$hesives for )VC 'i'es= ;e also manufacture a ran0e of locally $evelo'e$ te:tile chemicals, mostly for the %et>'rocessin0 sta0e of te:tile manufacturin0= Moreover our 'ro$uct ran0e inclu$es cro' emulsifiers %hich are use$ +y the )estici$e manufacturers= !ur 'ro$uct ran0e is inclusive of 5i<ui$ Emulsifiers=

:ar-et Fig5lig5ts "he 2030 floo$s %ere the +i00est catastro'he face$ +y the country an$ ma9ority of the mar,ets suffere$ as a result= *lon0 %ith this 0as su''ly shorta0es affecte$ the te:tile in$ustry resultin0 in 'lant shut$o%ns= Custo er =ocus H !ver the years te:tile in$ustry 'rocesses have +ecome more a$vance$ re<uirin0 the use of su'erior <uality chemicals= "o meet customer nee$s %e locally $evelo'e$ a ne%, com'lete ran0e of te:tile chemical 'ro$ucts to hel' them manufacture hi0h <uality te:tiles, an$ ma,e a mar, in the $omestic as %ell as the international mar,et= H * ne% 'artnershi' %as $evelo'e$ %ith 2iversey, 6nc %hich is a lea$in0 0lo+al 'rovi$er of cleanin0 an$ hy0iene solutions to the institutional mar,et'lace= H * testament of our focus on customers is that %e %on an a%ar$ from 2a%lance 8rou' for hi0h levels of trust an$ relia+ility= 1usiness Develop ent 2e!tile seg ent; "o retain customer focus an$ remain com'etitive in the mar,et, local innovation ca'a+ility has +een i$entifie$ as an inte0ral 'art of the se0mentFs success an$ reasona+le resources an$ efforts are +ein0 'ut in to $evelo' in>house technical ca'a+ility to focus on ne% 'ro$uct $evelo'ment on a re0ular +asis= C5elates; !ur ne% variants %ill ai$ in +etter soil mana0ement of ara+le lan$ an$ hel' im'rove yiel$ of cro'= Commerciali-ation of ne% chelate$ nutrients is e:'ecte$ $urin0 2033 as 'art of our e:'ansion of the 2issolvine ran0e= "hree ne% nutrients to +e launche$ are Co''er, Man0anese an$ 6ron, all of %hich are naturally $eficient in )a,istani soil= "hus all the ne% variants %ill further ai$ in +etter soil mana0ement of ara+le lan$ an$ hel' im'rove yiel$ of the cro'= Polyuret5ane; * sustaina+le su''ly of )olyurethane is a ,ey 0oal the +usiness is e:'ecte$ to achieve throu0h 0oo$ customer relationshi's an$ effective su''ly chain mana0ement= Efforts are un$er%ay to $evelo' ne% $eals %ith su''liers for consistent ra% material availa+ility= :aIor Fig5lig5ts H 2evelo'e$ an$ commerciali-e$ five ne% te:tile chemicals %hich %ere $evelo'e$ locally an$ hel'e$ re'lace o+solete 'ro$ucts in the mar,et= H 6ntro$uce$ chelate$ nutrients mo$ifie$ for local soil %hich hel'e$ im'rove the soilFs 'H H "he +usiness venture$ into ne% territories such as Sri 5an,a an$ "an-ania for e:'orts=

6 have en9oye$ 22 lon0 years %ith 6C6 +ecause of its hi0hly ethical value system an$ +ecause of it?s care for 'eo'le, community an$ the environment= Currently, my +usiness has im'lemente$ sustaina+ility inititiatives such as ener0y conservation an$ the Effluent "reatment 4ecyclin0 )ro9ect, sho%in0 a continuin0 commitment to sustaina+ility
: A5san Anwar
)lant HSE&S an$ Su''ly Chain Mana0er

66 E C5e icals E 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

;e turne$ the ti$e in H4 last year %ith fun$amentally si0nificant intitiatives %hich %or, aroun$ ca'a+ility>+uil$in0 to +rin0 'eo'le to the heart of the +usiness= 6?m e:cite$ to see this strate0y +ecome a resoun$in0 successT
#5ifa "/ra5i
Human 4esource Mana0er

H 2evelo'e$ ne% cro' emulsifiers %ith +etter chemical 'ro'erties resultin0 in effective +on$in0 stren0th C5allenges "he te:tile in$ustry has suffere$ 0reatly throu0hout the year on the +ac, of 0as su''ly shorta0es an$ yarn 'ricin0 issues affectin0 +oth $eman$ an$ su''ly= *s a result, the te:tile in$ustry has shrun, +y a+out 0C over the year= "e:tile units have not receive$ 0as for over 300 $ays in the year %hich im'acte$ the sales of te:tile chemicals= 8overnment 'olicies in the comin0 year %ill $etermine a lot of our ,ey $ecisions= "hese 'olicies %ill +e relate$ to the han$lin0 of the ener0y situation of )a,istan, 'articularly the 0as su''ly cutoffs for the in$ustrial sector= Moreover the im'lementation of the te:tile 'olicy 2034 %oul$ +e an im'ortant factor in the $evelo'ment of the te:tile sector= "he 6n$ustry $urin0 the year %as affecte$ 0reatly $ue to the lac, of $eman$ an$ increase$ #e$eral E:cise $uty on a''liances= "he recent electricity an$ 0as crisis, alon0 %ith yarn 'ricin0 issues have cri''le$ the te:tile in$ustry at lar0e an$ affecte$ the off>ta,e of 6C6Fs 'ro$ucts= "his cou'le$ %ith our mature 'ro$uct ran0e le$ to a Strate0y 4evie% for the se0ment= =uture outlooH 2033 is e:'ecte$ to +e a year of recovery $urin0 %hich economic in$icators affecte$ +y floo$s are e:'ecte$ to im'rove= H Ma9ority of the mar,ets are e:'ecte$ to 0ro% only mar0inally on the +ac, of slo% recovery in $eman$= H "he ener0y crisis is e:'ecte$ to remain at the same level as this year, if not %orse= Ho%ever any im'rovement in 0as su''lies to the in$ustry may result in an im'rove$ te:tile se0ment

!ur 'ro$uct ran0e inclu$es cro' emulsifiers

!ur locally $evelo'e$ te:tile chemicals are %i$ely use$ in the te:tile in$ustry

"he a''liance in$ustry is a ,ey customer se0ment

6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E C5e icals E 6.

Putting down roots

*s the sayin0 0oes, you rea' %hat you so%= 6t stan$s to reason then, that if you %ant to 0ro% healthy cro's you have to start %ith the +est <uality see$s= 8ivin0 farmers im'rove$ access to 0oo$ <uality see$s is a critical re<uirement for sustaina+le a0ricultural 0ro%th an$ foo$ security, %hich is one of the ultimate 0oals %e strive to 'romote= ;e also %ant our +usiness to +e truly stron0, %hich re<uires a $e0ree of self>reliance= ;e are therefore also focusin0 on creatin0 our o%n 'ro$uct ran0e= "his not only ma,es us more sustaina+le, +ut creates a host of +enefits, +oth for our +usiness an$ our customers= 6n 2030 %e +e0an locally 'ro$ucin0 our o'en>'ollinate$ see$ varieties an$ our ran0e no% inclu$es several varieties of ve0eta+le see$s= 6n a$$ition to increasin0 our o%n sustaina+ility, this has a$$e$ to the +usinessF 'rofita+ility, an$ also ha$ the im'ortant effect of increasin0 technical ,no%>ho% amon0 farmers an$ local ven$ors= "he effective use of these im'rove$ see$s can result in hi0her a0ricultural 'ro$uction an$ increase the net incomes of farmin0 families, %hich in turn %ill have a 'ositive im'act on rural economies= ;e are confi$ent that throu0h our efforts, %e are not only 'uttin0 $o%n sustaina+le roots for our +usiness, +ut also for the a0ricultural community %e serve=

?ife #ciences

6nnovative ne% 'ro$ucts that chan0e the %ay $iseases are treate$ are the most e:citin0 thin0 a+out my 9o+, an$ %e ma$e a ma9or +rea,throu0h in this area in 2030S one of our 'ro$ucts %ill chan0e the %ay $iarrhoea is treate$T
Aa ir $aveed
&usiness Mana0er

)harmaceuticals
:ar-et ,verview !ur )harmaceutical &usiness not only mar,ets a stron0 'ortfolio of lea$in0 an$ innovative +ran$s of 'rescri'tion me$icines from *straVeneca, a lea$in0 multi>national healthcare com'any, +ut also mar,ets its o%n +ran$s= Moreover, %e have recently e:'an$e$ our anti+iotic ran0e %ith the launch of a num+er of 'ro$ucts in one of the fastest 0ro%in0 se0ments in the mar,et= 1usiness Develop ent "he )harmaceuticals se0ment 'roactively see,s sustaina+le 'artners, an$ one such 'artnershi' that came to fruition %as *my+act= * ne% innovative 'ro+iotic s'ecially $esi0ne$ for com+atin0 $iarrhea in the 'e$iatric 'o'ulation %as source$ from Euro'e an$ launche$ in 2030= "%o ne% contractual a0reements %ere si0ne$ in 2030, one %ith a local manufacturer an$ one %ith a Euro'ean com'any= 1usiness Perfor ance 6C6 )a,istan, )harmaceuticals Se0ment is ran,e$ 2 r$ %ith retail sales value of 4s= 3=( +illion an$ a 0ro%th rate of 34=AC an$ four years C*84 of 3(=/C= !ut of thirteen *straVeneca +ran$s that 6C6 mar,ets in )a,istanS nine are no% ran,e$ as num+er one in their res'ective se0ments= ;hile t%elve out of these thirteen +ran$s are ran,e$ in the to' three= "he se0ment is ran,e$ num+er one in Car$iolo0y an$ num+er in !ncolo0y=

C5allenges H Hy'er>com'etitive mar,et H 6ncreasin0 customer e:'ectations an$ $ecreasin0 +ran$ loyalty H 4am'ant unethical 'ractices +y com'etitors H Hi0h 'romotional s'en$ +y com'etitors H Stron0 re0ulatory environmentS all 'rices fi:e$ an$ controlle$ +y 0overnment H .o 'rice increase +y the Ministry of Health, intensifyin0 'ressure on mar0ins =uture outloo6C6 )harmaceuticals has al%ays out'erforme$ the mar,et an$ %ith ne% launches in 2033 is e:'ecte$ to 0ro% faster than the mar,et=

?ist of our Products ,ncology *rimi$e: .olva$e: Vola$e: Caso$e: AntiB"nfectives Meronem 6CE# #orte:one Ci'roci$e C$# Sero<uel Vomi0 GastroBintestinal *my+act Eti'ro Ant5el intic @etress

"he fact that +ran$s an$ 'ro$ucts 6 mana0e +rin0 ho'e an$ relief to cancer 'atients is %hat $rives me to remain $e$icate$ to my %or,=
Dr "ru #aIid
Com'liance Mana0er & )ro$uct Mana0er !ncolo0y

Cardiovascular "enormin "enoret Vestril Vestoretic 6n$eral Eti-em )rescar$ Analgesics Synfle: )ro:en 2e:ifen Anaest5etic 2i'rivan (E2"*) ,ral C5elatorBfor 25alasse ia #erri'ro: AntiBdia/etic 8li+etic

!ur )harmaceuticals "eam at the *my+act launch

!ne of the many +loo$ $onation $rives arran0e$ +y the )harmceuticals "eam

*nimal Health team %ith livestoc, farmers

*nimal Health
:ar-et ,verview *0riculture sector of )a,istan contri+utes a+out 23C to the national 82) an$ em'loys nearly 44C of la+or force= ;ith a+un$ant natural resources in the sha'e of a lar0e livestoc, 'o'ulation, )a,istan is the fourth lar0est 0lo+al mil, 'ro$ucer= Ho%ever, the livestoc, mar,et is still 'rimarily unor0ani-e$ an$ technolo0y a$o'tion is a challen0e since the livestoc, 'o'ulation is scattere$ %ith avera0e farm hol$in0 of one to si: animals= "he 'oultry sector is the secon$ lar0est in$ustry in )a,istan after te:tiles= )oultry is the lar0est consumer of 0rains, es'ecially mai-e= )oultry meat contri+utes 3AC of the total meat 'ro$uction in the country= * ,ey feature of the in$ustry is its ra'i$ mechani-ation an$ intro$uction of inte0rate$ farmin0 systems= !verall, for 2030, the or0ani-e$ animal healthcare mar,et is estimate$ at 4s= 1=( +illion= Custo er =ocus ?#ocusin0 on our customers future first? is the $river +ehin$ our a''roach of servin0 farmers at 0rassroot level across the country= "he animal health team is 'erio$ically traine$ on 'ro$uct technolo0ies as %ell as on 0eneral 0oo$ farm mana0ement 'ractices= !ur $iscussions %ith customers are, therefore, focuse$ on fin$in0 the ri0ht ?+usiness solutions? to im'rove ?farm economics?, throu0h use of innovative 'ro$ucts from our %i$e ran0e of 'ro$ucts as %ell as a$o'tion of 0oo$ farm mana0ement 'ractices= 1usiness Develop ent 6n 2030, a num+er of ne% 'ro$ucts %ere launche$ to 'rovi$e more o'tions an$ solutions to our value$ customers= .e% 'ro$ucts launche$ $urin0 2030, inclu$e$ 6ntervet/Scherin0>)lou0h *nimal HealthFs JCoccivac &K a vaccine for 'oultry cocci$iosis $iseaseS 5.& 6nternational #ee$sF J.ascorK a +roiler 're>starter fee$ to ma:imi-e farmerFs 'rofita+ility throu0h +etter fee$ efficiencyS JSu'ervitK an$ J&roiler )remi:K in 'oultry an$ JCattle "o' 2ressin0K in livestoc, as su''lements= #rom our J!%n &ran$sK ran0e ne% launches inclu$e$ JVan$a )elletK a cattle concentrate fee$ to enhance homo0enous inta,e an$ minimi-e nutritional %asta0e, J2isulfK an anti+iotic, JV*2 K a vitamins su''lement an$ JMelonacK an .S*62= "he 2ivision also mar,ete$ 2u)ontFs %orl$ lea$in0 +ran$s inclu$in0 JVir,on SK, J&iosolve )lusK an$ JHy'ero:K, cleanin0 an$ $isinfectin0 solutions for livestoc, an$ 'oultry farmers= 1usiness Perfor ance !ur *nimal Health se0ment crosse$ the 4s= 3 +illion mar,, %ith net sales of 4s= 3,040 million, re0isterin0 a 0ro%th of 4C over last year= C5allenges ;e %itnesse$ one of the %orst ever natural $isasters in the countryFs history %ith $evastatin0 floo$s im'actin0 lives an$ livelihoo$s across the country= !ur rural 'o'ulation suffere$ the most an$ there %as hi0h inci$ence of $istress sales of livestoc,= "his cou'le$ %ith risin0 inflation an$ slo% economic 0ro%th $ue to +oth internal an$ e:ternal factors, create$ $ifficult +usiness con$itions as farmerFs a+ility to 'urchase 'ro$ucts for their livestoc, $ecline$= #or the 'oultry sector, risin0 costs of 'ro$uction $ue to hi0h ener0y costs an$ increasin0 0rain 'rices ma$e 'oultry farmers 0enerally more cost conscious in terms of their 'urchasin0 of me$icines an$ other re<uire$ 'ro$ucts= =uture outloo2es'ite the many challen0es facin0 the livestoc, an$ 'oultry mar,ets, this se0ment has ro+ust 'lans to continue %ith the 0ro%th momentum throu0h effective e:ecution of %ell researche$ mar,etin0 'lans for the e:istin0 'ortfolio of 'ro$ucts an$ +y continuin0 to a$$ ne% 'ro$ucts/technolo0ies from %orl$ lea$in0 su''liers inclu$in0 6ntervet/Scherin0> )lou0h *nimal Health, Elanco *nimal Health, 2u)ont an$ 5.& 6nternational #ee$s (a Car0ill com'any)=

;or,in0 %ith a team $etermine$ to a00ressively 0ro% the +usiness is the most motivatin0 an$ e:citin0 'art of my 9o+T
:atin A Iad
Mar,etin0 Mana0er

My time %ith the com'any has 'rovi$e$ me the chance to 'erform to the +est of my ca'a+ilities= Every $ay is a challen0e to $o even +etter, %hich is a thrill on its o%nT
Hia ur )e5 an 85ali+ue
Materials Mana0er

Ve0eta+le See$s
:ar-et ,verview Currently the estimate$ value of ve0eta+le see$s in )a,istan is nearly 4s= 2=/ +illion %ith Com'oun$ *nnual 8ro%th 4ate (C*84) of 3 C= "he su''ly of see$ is $ominate$ +y im'orts from 6n$ia %hich accounts for aroun$ (7C, %hile IS* is the 2n$ lar0est su''lier %ith 32C share= "he su''ly of see$s throu0h im'orts an$ local 'ro$uction is $e'en$ent u'on more than /00 com'anies= 6nformal su''lies throu0h farmers o%n 0ro%n local see$s share a si0nificant 'ortion of ;heat, Ve0eta+les (!'en )ollinate$ Varieties), 4ice an$ Cotton see$ su''ly= Product )ange Currently, our se0ment 'romotes the most $iverse an$ %i$es'rea$ 'ortfolio of ve0eta+le see$ 'ro$ucts in the )a,istani mar,et= !ur 'ro$uct assortment covers +oth hy+ri$ an$ o'en 'ollinate$ see$s= "hese inclu$e (3 varieties of see$ coverin0 3 cro's inclu$in0 !,ra, Hot )e''er, "omato, E00 )lant, &ottle 8our$, 4i$0e 8our$, &itter 8our$, S'on0e 8our$, Cucum+er, S'inach, )eas, Corian$er, an$ Cauliflo%er= Custo er =ocus =ar er 2raining Progra s ;e aim to 0enerate a%areness amon0st farmers a+out ho% inte0ral see$ <uality is in im'rovin0 farm economics= ;e focus our efforts on e$ucatin0 customers to ma:imi-e outcome from their limite$ lan$hol$in0 +y enhancin0 their a0ronomic 'ractices= ;e train them on o'timal use of in'uts, cro' 'rotection, an$ 'ost harvest han$lin0 of 'ro$uce= 6n or$er to $isseminate this ,no%le$0e, in 2030 our team or0ani-e$ a''ro:imately (( farmersF meetin0s across the country= 6n these meetin0s %e en0a0e$ more than 3/00 farmers for a share$ learnin0 e:'erience= Product 2rials ;e create a stron0 J4eason to &elieveK for our 'ro$ucts +y 0eneratin0 trials %ith o'inion lea$in0 farmers= "he imme$iate im'act of $esire$ results 'rovi$es our customers %ith the confi$ence to convert onto our hi0h yiel$in0 an$ 0enetically a$a'ta+le hy+ri$ see$ varieties= Similar trials are con$ucte$ at 'u+lic sector research institutes to esta+lish the im'act of our 'ro$ucts in +enefitin0 farmers across the nation= !ur technical team actively en0a0es 0ro%ers an$ mi$$lemen throu0h farmer 0atherin0s %here %e hi0hli0ht the 0reater value 'ro'osition of 'ro$uce that results from our see$= "his is $one +y $emonstratin0 that the 'ro$uce our see$s 0enerate comman$s a hi0her mar,et value than that of conventional see$= "his $ifferentiation is +ase$ on the sha'e, si-e, color, an$ lon0er shelf life of the fruit= 1usiness Develop ent ;e +enchmar, our see$ varieties a0ainst mar,et lea$in0 +ran$s= "his research is con$ucte$ at a farm in Sahi%al an$ 0overnment research centers in )un9a+, Sin$h, an$ @hy+er )a,htoon @ha%a, to evaluate cro' 'erformance in varie$ climatic con$itions= !ur technical team uses this research in assessin0 'ro'er 'ositionin0 of our o%n varieties in a''ro'riate se0ments= ;hile at the same time, the 'ro$uct 'i'eline is au0mente$ an$ more com'etitive varieties are +rou0ht to the mar,et= Hence %e hel' farmers in fin$in0 the most a''ro'riate an$ climatically a$a'ta+le variety that ma:imi-es outcome in terms of enhance$ yiel$s an$ 'rofita+ility= ?ocal seed production of ,-ra and Pea seeds 6,P97 Sustaina+ility is critical for our lon0 term success= 6n or$er to ensure our future +usiness health, a 'ilot 'ro9ect for local 'ro$uction %as initiate$ un$er technical assistance from *$vanta, 6n$ia= "his initiative %as aime$ at 0eneratin0 lon0 term +usiness stren0th +y 'rovi$in0 hi0h <uality see$s an$ sharin0 +est a0ronomic 'ractices %ith local famers= "he 'ro9ect is e:'ecte$ to save valua+le forei0n e:chan0e an$ consoli$ate our mar0ins= 6n a$$ition, local see$ 'ro$uction creates o''ortunities for farmers an$ the see$ 'rocessin0 in$ustry of )a,istan= 6n 2033, the se0ment has 'lanne$ local 'ro$uction of )eas an$ !,ra on a''ro:imately 2(0 acres of lan$ across )un9a+ in or$er to fill the evi$ent 0a' in the mar,et for hi0h <uality o'en 'ollinate$ ve0eta+le see$s= $ew varieties introduced "o meet lon0er term +usiness o+9ectives, ve0eta+le see$s se0ment has en0a0e$ )ureline See$s, a IS +ase$ com'any= "his com'any s'eciali-es in )eas an$ &eans= ;e have con$ucte$ initial trials for ( )eas varieties at 0overnment an$ 'rivate farms= "hese trials have 'rovi$e$ 'romisin0 results in varie$ settin0s= !ur aim is to 0enerate o'tions for farmers %ith ne% varieties of )ea see$s %ith resistance to tou0h climatic con$itions an$ +etter 'rofit mar0ins $ue to early maturity= =uture ,utlooH "o +e amon0st the to' Ve0eta+le See$ Com'anies in )a,istan= H Create a ne% customer se0ment focuse$ on <uality see$ as a 'riority concern= H "o +e the lea$in0 su''lier of <uality o'en 'ollinate$ ve0eta+le see$ varieties in )a,istan= H "o im'rove farm economics of lo% income a0riculture sector

"he e:citin0 thin0 for me is that Ve0eta+le See$s is a ne% se0ment, an$ %e are $oin0 everythin0 for the first timeS every challen0e is fresh an$ vital an$ %e are ,een to ta,e on ne% 'ro9ects=
#a/oor A5 ed
Mana0er Su''ly Chain & Ve0eta+le See$s

Ve0eta+le See$s "eam mem+ers $urin0 a visit to *$vanta 6n$ia

Ve0eta+le See$s "eam $urin0 a cro' han$lin0 activity %ith the farmers

See$s "eam mem+ers at )acific See$s in *ustralia

Caterin0 to the sunflo%er mar,et

See$s
:ar-et ,verview See$ in$ustry is estimate$ at 4s 40+n %here !'en>)ollinate$ Variety (!)V) see$ mar,et is aroun$ 4s /=7+n %ith A2C share an$ Hy+ri$ see$ mar,et is re'orte$ at 4s =4+n %ith 1C share of total see$ mar,et= 6C6 is only 'resent in the hy+ri$ mar,et se0ment alon0 %ith fe% other ma9or multinational com'anies= ;ith increase$ level of a%areness amon0 farmers, share of hy+ri$ see$ mar,et is 0ra$ually increasin0= Ho%ever, im'ortance of !)V mar,et cannot +e overloo,e$, therefore See$s se0ment is constantly strivin0 to fin$ suita+le 'ro$ucts that coul$ +e intro$uce$ in this se0ment of mar,et= Custo er =ocus ;e ta,e a ,een interest in fulfillin0 customer nee$s an$ $eman$s= 6n line %ith this %e intro$uce$ small 'ac,s of corn 'ro$ucts to effectively meet customer re<uirements= ;e also inten$ to intro$uce small 'ac,s of fo$$er 'ro$ucts to cater to the nee$s of farmers %ith small lan$ hol$in0s= ;e 'rovi$e$ free see$s $rill 'lates to solve farmerFs 'ro+lem of see$ so%in0 in sunflo%er 0ro%in0 areas of Sin$h= 1usiness Develop ent ;e are %or,in0 to 'romote the conce't of intercro''in0 of sunflo%er an$ canola %ith su0arcane= ;e have coor$inate$ %ith 0overnment $e'artments an$ su0ar in$ustries to esta+lish the conce't an$ +enefit farmers +y increasin0 their income= ;e have also +een %or,in0 on $evelo'in0 the conce't of sila0e for its corn 'ro$ucts in coor$ination %ith .estle an$ En0ro staff= .e% areas %ere $evelo'e$ in u''er Sin$h an$ )un9a+ for sunflo%er an$ corn= 1usiness Perfor ance !ur See$s se0ment has sho%n 0oo$ volume 0ro%th in all its 'ro$ucts +arrin0 sunflo%er %hich %as im'acte$ +y unfavora+le con$itions= Volume 0ro%th of 4 C %as recor$e$ in corn, %hereas volume 0ro%th of 30C, 330C an$ 300C %as recor$e$ in fo$$er, canola an$ M4 &uster res'ectively= Se0ment also maintaine$ stron0 8M/Sales ratio for 2030= C5allenges Sunflo%er mar,et faces many challen0es %hich are ham'erin0 its 0ro%th= 8overnment focus to%ar$s %heat affects farm economics ma,in0 sunflo%er an unvia+le cro' for farmers= "he tren$ to%ar$s early &" cotton is also 'rovin0 unfavora+le for sunflo%er= 5o% cost an$ <uality im'orts of fo$$er are also a ma9or challen0e for our fo$$er ran0e= =uture outloo;e have chal,e$ out an a00ressive 0ro%th strate0y, %here %e %ill stren0then our 'osition in the current mar,et an$ $iversify into other mar,ets to focus on sustaina+le 0ro%th= ;e are enterin0 into the hu0e !)V mar,et +y intro$ucin0 corn fo$$er an$ rice varieties %hich %oul$ +e follo%e$ +y other varieties= ;e are also enterin0 into the lucrative micronutrients mar,et +y intro$ucin0 'ro$ucts li,e -inc an$ humic aci$S many other micronutrient 'ro$ucts are also in the 'i'eline=

Even thou0h mar,ets %ere tur+ulent an$ environmental factors a$verse, %e too, this as an o''ortunity to create +usiness $iversity in any 'ossi+le %ay=
#aIid :e5 ood
&usiness 2evelo'ment Mana0er

"he floo$s in 2030 0reatly im'acte$ the a0riculture sector resultin0 in a tou0h +usiness environment= My +i00est challen0e %as to ,ee' my team?s morale hi0h an$ motivate them to e:cel=
A/dul @a5a/
Mar,etin0 Mana0er
6C6 )a,istan 5imite$ *nnual 4e'ort 2030 E ?ife #ciences E .'

"C" Pa-istan ?i ited =inancial #tate ents

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

.5

Auditors )eport to t5e :e /ers

;e have au$ite$ the anne:e$ unconsoli$ate$ +alance sheet of 6C6 )a,istan 5imite$ (Jthe Com'anyK) as at 3 2ecem+er 2030 an$ the relate$ unconsoli$ate$ 'rofit an$ loss account, unconsoli$ate$ statement of com'rehensive income, unconsoli$ate$ cash flo% statement an$ unconsoli$ate$ statement of chan0es in e<uity to0ether %ith the notes formin0 'art thereof, for the year then en$e$ an$ %e state that %e have o+taine$ all the information an$ e:'lanations %hich, to the +est of our ,no%le$0e an$ +elief, %ere necessary for the 'ur'oses of our au$it= 6t is the res'onsi+ility of the Com'any?s mana0ement to esta+lish an$ maintain a system of internal control, an$ 're'are an$ 'resent the a+ove sai$ statements in conformity %ith the a''rove$ accountin0 stan$ar$s an$ the re<uirements of the Com'anies !r$inance, 3A14= !ur res'onsi+ility is to e:'ress an o'inion on these statements +ase$ on our au$it= ;e con$ucte$ our au$it in accor$ance %ith the au$itin0 stan$ar$s as a''lica+le in )a,istan= "hese stan$ar$s re<uire that %e 'lan an$ 'erform the au$it to o+tain reasona+le assurance a+out %hether the a+ove sai$ statements are free of any material misstatement= *n au$it inclu$es e:aminin0, on a test +asis, evi$ence su''ortin0 the amounts an$ $isclosures in the a+ove sai$ statements= *n au$it also inclu$es assessin0 the accountin0 'olicies an$ si0nificant estimates ma$e +y mana0ement, as %ell as, evaluatin0 the overall 'resentation of the a+ove sai$ statements= ;e +elieve that our au$it 'rovi$es a reasona+le +asis for our o'inion an$, after $ue verification, %e re'ort thatG a) +) in our o'inion, 'ro'er +oo,s of account have +een ,e't +y the Com'any as re<uire$ +y the Com'anies !r$inance, 3A14S in our o'inionG i) the +alance sheet an$ 'rofit an$ loss account to0ether %ith the notes thereon have +een $ra%n u' in conformity %ith the Com'anies !r$inance, 3A14, an$ are in a0reement %ith the +oo,s of account an$ are further in accor$ance %ith accountin0 'olicies consistently a''lie$S the e:'en$iture incurre$ $urin0 the year %as for the 'ur'ose of the Com'any?s +usinessS an$ the +usiness con$ucte$, investments ma$e an$ the e:'en$iture incurre$ $urin0 the year %ere in accor$ance %ith the o+9ects of the Com'anyS

ii) iii)

c)

in our o'inion an$ to the +est of our information an$ accor$in0 to the e:'lanations 0iven to us, the unconsoli$ate$ +alance sheet, unconsoli$ate$ 'rofit an$ loss account, unconsoli$ate$ statement of com'rehensive income, unconsoli$ate$ cash flo% statement an$ unconsoli$ate$ statement of chan0es in e<uity to0ether %ith the notes formin0 'art thereof conform %ith a''rove$ accountin0 stan$ar$s as a''lica+le in )a,istan, an$, 0ive the information re<uire$ +y the Com'anies !r$inance, 3A14, in the manner so re<uire$ an$ res'ectively 0ive a true an$ fair vie% of the state of the Com'any?s affairs as at 3 2ecem+er 2030 an$ of the 'rofit, its cash flo%s an$ chan0es in e<uity for the year then en$e$S an$ in our o'inion Va,at $e$ucti+le at source un$er the Va,at an$ Ishr !r$inance, 3A10 (WV666 of 3A10), %as $e$ucte$ +y the Com'any an$ $e'osite$ in the Central Va,at #un$ esta+lishe$ un$er section 7 of that !r$inance=

$)

2ateG 3/ #e+ruary, 203331 #e+ruary 200A @arachi

@)M8 "aseer Ha$i & Co= Chartere$ *ccountants *mir Lamil *++asi

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

..

1alance #5eet

*s at 2ecem+er 3, 2030

*mounts in 4s F000

.ote *KG"2L A$D ?"A1"?"2"*# #5are Capital and )eserves *uthorise$ ca'ital 3,(00,000,000 or$inary shares of 4s 30 each 6ssue$, su+scri+e$ an$ 'ai$>u' ca'ital Ca'ital reserves Ina''ro'riate$ 'rofit 2otal *+uity #urplus on )evaluation of Property( Plant and *+uip ent ( 4

%0&0

200A

&5(000(000 &('88(0%' 465(845 &%(604(%%5 &4(548(00' 00.('5%

3(,000,000 3, 11,02 4/(,14( 33,/21,A21 3 ,412,7A/ A 3,14/

?"A1"?"2"*# $onBCurrent ?ia/ilities )rovisions for non>mana0ement staff 0ratuity an$ eli0i+le retire$ em'loyees? me$ical scheme 2eferre$ ta: lia+ility > net / 7 %%%(04% 8.0(%48 &(00'(&00 Current ?ia/ilities "ra$e an$ other 'aya+les Contingencies and Co it ents 1 A %%(0'0(6.% 23,422,/(7 5(48%(0'. (,7AA,1A1 31 ,03A 3,02(,0A1 3,201,337

2otal *+uity and ?ia/ilities

.8

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

.ote A##*2# $onBCurrent Assets )ro'erty, 'lant an$ e<ui'ment 6ntan0i+le assets 30 33

%0&0

200A

8(805(00& &80(&0% 0(0.5(&0'

A,22(,330 > A,22(,330 732,(00 0,103 2A,071 3,072, 7A 30,2A7,41A

5on0>term investments 5on0>term loans 5on0>term $e'osits an$ 're'ayments

32 3 34

.&%(500 '%4(%64 40(458 &(0..(%%% &0(&5%(4&5

Current Assets Stores an$ s'ares Stoc,>in>tra$e "ra$e $e+ts 5oans an$ a$vances "ra$e $e'osits an$ short>term 're'ayments !ther receiva+les "a:ation recovera+le Cash an$ +an, +alances 23 3( 3/ 37 31 3A 20 450(506 '(.86('45 .0%(86. 500(.%% 44'(6.4 606(%80 545(05& 4(66&(8%% &&(8.8(%5. 2otal Assets %%(0'0(6.% 4A/,403 ,244,(2( A3A,4/ 40/,7 A 4(2,4 1 /77,333 4/0,240 4,4/1,2(3 33,32(,3/1 23,422,/(7

"he anne:e$ notes 3 to 4/ form an inte0ral 'art of these financial statements=

: E Eaffer

Chairman / 2irector

@a+ar A :ali-

Chief E:ecutive

Chief #inancial !fficer

"C" Pa-istan ?i ited *nnual 4e'ort 2030 .0

=ero> )i>vi

Profit and ?oss Account

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

.ote "urnover Sales ta:, e:cise $uty, commission an$ $iscounts .et sales, commission an$ toll income Cost of sales 8ross 'rofit Sellin0 an$ $istri+ution e:'enses *$ministration an$ 0eneral e:'enses !'eratin0 result #inancial char0es !ther o'eratin0 char0es 21 2A 2/ 27 24 24 2

%0&0 '0(5'%(506 64(40%(5%67 '5(&%0(080 6%8(44'(6007 6(686(%00 6&(6.4(.&07 6&(%00(0057 '(.&%(566 6&6'(8807 6'0'(4%67 646.('067

200A 2, AA,313 ( ,A/A,214) 21,42A,1A7 (22,7(4,00() (,/7(,1A2 (3,470,374) (3,371,0/4) ,027,/(4 (3/7,(43) (247,(A0) (43(,3 3) 4(A,A1 ,072,(0/ (3,027,7/1) 2,044,7 1 (4u'ees) 34=7

!ther o'eratin0 income )rofit +efore ta:ation "a:ation )rofit after ta:ation

486(%56 '(.'&(5&6

6&('0%(6007 %(4%8(8%6 6)upees7

*arnings per s5are B 1asic and diluted "he anne:e$ notes 3 to 4/ form an inte0ral 'art of these financial statements=

&.350

: E Eaffer

Chairman / 2irector
80 *nnual 4e'ort 2030 "C" Pa-istan ?i ited

@a+ar A :ali-

Chief E:ecutive

Chief #inancial !fficer

=ero> )i>vi

#tate ent of Co pre5ensive "nco e

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 Profit for t5e year ,t5er co pre5ensive inco e 2otal Co pre5ensive inco e for t5e year %(4%8(8%6 > %(4%8(8%6

200A 2,044,7 1 > 2,044,7 1

"he anne:e$ notes 3 to 4/ form an inte0ral 'art of these financial statements=

: E Eaffer

Chairman / 2irector

@a+ar A :ali-

Chief E:ecutive

Chief #inancial !fficer

"C" Pa-istan ?i ited *nnual 4e'ort 2030 8&

=ero> )i>vi

Cas5 =low #tate ent

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 Cas5 =lows fro ,perating Activities '(.'&(5&6

200A

)rofit +efore ta:ation *$9ustments forG 2e'reciation an$ amortisation 8ain on $is'osal of 'ro'erty, 'lant an$ e<ui'ment )rovision for non>mana0ement staff 0ratuity an$ eli0i+le retire$ em'loyees? me$ical scheme Mar,>u' on +an, $e'osits an$ loan to su+si$iary 6nterest / mar,>u' e:'ense

,072,(0/

04'(8&& 6&0(%&&7 58(00& 6'5&(05.7 &0&(888 4(4.4(0'8

170,/11 ((,2A ) (/,001 (221,/24) 11,331 ,1( ,40

Movement inG ;or,in0 ca'ital 5on0>term loans 5on0>term $e'osits an$ 're'ayments Cash 0enerate$ from o'erations )ayments for G .on>mana0ement staff 0ratuity an$ eli0i+le retire$ em'loyees? me$ical scheme "a:ation 6nterest / mar,>u' )rofit / mar,>u' receive$ on +an, $e'osits .et cash 0enerate$ from o'eratin0 activities 6&0(0687 6&(54'(%5&7 6&0&(8887 %8%(448 %(''4(4%8 (3(,2 A) ((3 ,/10) (A7,0A7) 3/ ,A 7 4,47/,2 3 6.'0(.867 6&5(6857 6&&('807 '(.&6(&8. 3,01 ,4A7 (3A/) 3,/0/ 4,A 1, 30

Cas5 =lows fro

"nvesting Activities 6854('4%7 ''(0'' 68(4.0 > (12/,402) 37,341 (1,233 (317,000)

)ayments for ca'ital e:'en$iture )rocee$s from $is'osal of 'ro'erty, 'lant an$ e<ui'ment )rofit / mar,>u' receive$ on loan to su+si$iary 5oan / Stan$+y finance facility to su+si$iary com'any > net

.et cash use$ in investin0 activities

6.5%(8'07

(A 1,04 )

8%

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 Cas5 =lows fro 2ivi$en$ 'ai$ .et cash use$ in financin0 activities .et increase in cash an$ cash e<uivalents Cas5 and cas5 e+uivalents at Eanuary & Cas5 and cas5 e+uivalents at Dece /er '& B note %& =inancing Activities 6&('88(0%.7 6&('88(0%.7 &0'(5.& 4(468(%5& 4(66&(8%%

200A

(3,043,031) (3,043,031) 2,4A7,370 3,A73,013 4,4/1,2(3

:ove ent in @or-ing Capital 6"ncrease7 J Decrease in current assets Stores an$ s'ares Stoc,>in>tra$e "ra$e $e+ts 5oans an$ a$vances "ra$e $e'osits an$ short>term 're'ayments !ther receiva+les 45(805 654&(8%07 &%6(506 6&6&(.6&7 8(.64 .&(86& 6450(5557 6Decrease7 J "ncrease in current lia/ility "ra$e an$ other 'aya+les 6%80(%'&7 6.'0(.867 3,442,21/ 3,01 ,4A7 42,3 A (2A2,(/A) (332,1(3) (2/,41() (47,77/) 71,7( ( (1,71A)

"he anne:e$ notes 3 to 4/ form an inte0ral 'art of these financial statements=

: E Eaffer

Chairman / 2irector

@a+ar A :ali-

Chief E:ecutive

Chief #inancial !fficer

"C" Pa-istan ?i ited *nnual 4e'ort 2030 8'

=ero> )i>vi

#tate ent of C5anges in *+uity

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

"ssued( su/scri/ed and paidBup capital 1alance as on Eanuary &( %000 #inal $ivi$en$ for the year en$e$ 2ecem+er 3, 2001 O 4s 4=00 'er share 6nterim $ivi$en$ for the year 200A O 4s =(0 'er share 2ransactions wit5 owners( recorded directly in e+uity "otal com'rehensive income for the year en$e$ 2ecem+er 3, 200A "ransfer from sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment incremental $e'reciation for the 'erio$ > net of $eferre$ ta: > note ( &('88(0%' > > > >

Capital reserves

Gnappropriated profit

2otal

465(845 > > > >

&0(504(%58 ((((,20A) (41(,101) (3,043,037) 2,044,7 1

&%(448(&%6 ((((,20A) (41(,101) (3,043,037) 2,044,7 1

> >

> > 465(845

0,A4A 2,07(,/17 &&(6%8(0%8

0,A4A 2,07(,/17 &'(48%(.06

1alance as on Dece /er '&( %000

&('88(0%'

#inal $ivi$en$ for the year en$e$ 2ecem+er 3, 200A O 4s 4=(0 'er share 6nterim $ivi$en$ for the year 2030 O 4s (=(0 'er share 2ransactions wit5 owners( recorded directly in e+uity "otal com'rehensive income for the year en$e$ 2ecem+er 3, 2030 "ransfer from sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment incremental $e'reciation for the 'erio$ > net of $eferre$ ta: > note (

> > > >

> > > >

(/24,/30) (7/ ,43 ) (3, 11,02 ) 2,421,12/

(/24,/30) (7/ ,43 ) (3, 11,02 ) 2,421,12/

> >

> > 465(845

24,4A4 2,4( , 20 &%(604(%%5

24,4A4 2,4( , 20 &4(548(00'

1alance as on Dece /er '&( %0&0

&('88(0%'

"he anne:e$ notes 3 to 4/ form an inte0ral 'art of these financial statements=

: E Eaffer

Chairman / 2irector
84 *nnual 4e'ort 2030 "C" Pa-istan ?i ited

@a+ar A :ali-

Chief E:ecutive

Chief #inancial !fficer

=ero> )i>vi

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

&3

#tatus and $ature of 1usiness 6C6 )a,istan 5imite$ (Jthe Com'anyK) is incor'orate$ in )a,istan an$ is liste$ on the @arachi, 5ahore an$ 6slama+a$ Stoc, E:chan0es= "he Com'any is en0a0e$ in the manufacture of 'olyester sta'le fi+re, )!M chi's, so$a ash, 'aints, s'ecialty chemicals, so$ium +icar+onate, 'olyurethanesS mar,etin0 of see$s, toll manufacture$ an$ im'orte$ 'harmaceuticals an$ animal health 'ro$uctsS an$ merchantin0 of 0eneral chemicals= 6t also acts as an in$entin0 a0ent an$ toll manufacturer= "he Com'any?s re0istere$ office is situate$ at ( ;est ;harf, @arachi=

%3

#u

ary of #ignificant Accounting Policies

"he accountin0 'olicies a$o'te$ are the same as those %hich %ere a''lie$ for the 'revious financial year= %3& #tate ent of co pliance "hese financial statements have +een 're'are$ in accor$ance %ith a''rove$ accountin0 stan$ar$s as a''lica+le in )a,istan= *''rove$ accountin0 stan$ar$s com'rise of such 6nternational #inancial 4e'ortin0 Stan$ar$s (6#4S) issue$ +y the 6nternational *ccountin0 Stan$ar$s &oar$ as are notifie$ un$er the Com'anies !r$inance, 3A14, 'rovisions of an$ $irectives issue$ un$er the Com'anies !r$inance, 3A14= 6n case re<uirements $iffer, the 'rovisions of, or $irectives issue$ un$er the Com'anies !r$inance, 3A14 shall 'revail= %3% 1asis of preparation "hese financial statements have +een 're'are$ un$er the historical cost convention, e:ce't that certain 'ro'erty, 'lant an$ e<ui'ment have +een inclu$e$ at revalue$ amounts an$ certain e:chan0e elements referre$ to in note 2=1 have +een reco0nise$ in the cost of the relevant 'ro'erty, 'lant & e<ui'ment= "he 're'aration of financial statements in conformity %ith a''rove$ accountin0 stan$ar$s re<uires mana0ement to ma,e estimates, assum'tions an$ use 9u$0ments that affect the a''lication of 'olicies an$ re'orte$ amounts of assets an$ lia+ilities an$ income an$ e:'enses= Estimates, assum'tions an$ 9u$0ments are continually evaluate$ an$ are +ase$ on historical e:'erience an$ other factors, inclu$in0 reasona+le e:'ectations of future events= 4evisions to accountin0 estimates are reco0nise$ 'ros'ectively commencin0 from the 'erio$ of revision= Lu$0ments an$ estimates ma$e +y the mana0ement that may have a si0nificant ris, of material a$9ustments to the financial statements in su+se<uent years are $iscusse$ in note 42= %3' #taff retire ent /enefits "he Com'any?s retirement +enefit 'lans com'rise of 'rovi$ent fun$s, 'ensions, 0ratuity schemes an$ a me$ical scheme for eli0i+le retire$ em'loyees= Defined /enefit plans "he Com'any o'erates a fun$e$ 'ension scheme an$ a fun$e$ 0ratuity scheme for mana0ement staff= "he 'ension an$ 0ratuity schemes are salary schemes 'rovi$in0 'ension an$ lum' sums, res'ectively= )ension an$ 0ratuity schemes for mana0ement staff are investe$ throu0h t%o a''rove$ trust fun$s= "he Com'any also o'erates 0ratuity scheme for non>mana0ement staff an$ the 'ensioners? me$ical scheme %hich are unfun$e$= "he 'ension an$ 0ratuity 'lans are final salary 'lans= "he 'ensioner?s me$ical 'lan reim+urses actual me$ical e:'enses to 'ensioners as 'er entitlement= "he Com'any reco0nises e:'ense in accor$ance %ith 6*S 3A JEm'loyee &enefitsK= *n actuarial valuation of all $efine$ +enefit schemes is con$ucte$ every year= "he valuation uses the )ro9ecte$ Init Cre$it metho$= *ctuarial 0ains an$ losses are amortise$ over the e:'ecte$ avera0e remainin0 %or,in0 lives of em'loyees as allo%e$ un$er the relevant 'rovision of 6*S 3A JEm'loyee &enefitsK= )ast>service costs are reco0nise$ imme$iately in 'rofit an$ loss account, unless the chan0es to the 'lan are con$itional on the em'loyees remainin0 in service for a s'ecifie$ 'erio$ of time (the vestin0 'erio$)= 6n this case, the 'ast>service costs are amortise$ on a strai0ht>line +asis over the vestin0 'erio$= Defined contri/ution plans "he Com'any o'erates t%o re0istere$ contri+utory 'rovi$ent fun$s for its entire staff an$ a re0istere$ $efine$ contri+ution su'erannuation fun$ for its mana0ement staff, %ho have either o'te$ for this fun$ +y Luly 3, 2004 or have 9oine$ the Com'any after *'ril 0, 2004= 6n a$$ition to this the Com'any also 'rovi$es 0rou' insurance to all its em'loyees=
"C" Pa-istan ?i ited *nnual 4e'ort 2030 85

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

%34

Provisions * 'rovision is reco0nise$ in the +alance sheet %hen the Com'any has a le0al or constructive o+li0ation as a result of a 'ast event, an$ it is 'ro+a+le that an outflo% of economic +enefits %ill +e re<uire$ to settle the o+li0ation an$ a relia+le estimate can +e ma$e of the amount of o+li0ation= "he amount reco0nise$ as a 'rovision reflects the +est estimate of the e:'en$iture re<uire$ to settle the 'resent o+li0ation at the en$ of the re'ortin0 'erio$=

%35

2rade and ot5er paya/les "ra$e an$ other 'aya+les are reco0nise$ initially at fair value 'lus $irectly attri+uta+le cost, if any=

%36

Dividend 2ivi$en$ $istri+ution to the Com'any?s sharehol$ers is reco0nise$ as a lia+ility in the 'erio$ in %hich the $ivi$en$s are a''rove$=

%3.

2a!ation 6ncome ta: e:'ense com'rises current an$ $eferre$ ta:= 6ncome ta: e:'ense is reco0nise$ in the 'rofit an$ loss account, e:ce't to the e:tent that it relates to items reco0nise$ $irectly in other com'rehensive income or +elo% e<uity, in %hich case it is reco0nise$ in other com'rehensive income or +elo% e<uity res'ectively= Current )rovision for current ta:ation is +ase$ on ta:a+le income at the enacte$ or su+stantively enacte$ rates of ta:ation after ta,in0 into account availa+le ta: cre$its an$ re+ates, if any= "he char0e for current ta: inclu$es a$9ustments to char0e for 'rior years, if any= Deferred 2eferre$ ta: is reco0nise$ usin0 +alance sheet metho$, 'rovi$in0 for tem'orary $ifferences +et%een the carryin0 amounts of assets an$ lia+ilities for financial re'ortin0 'ur'oses an$ the amounts use$ for ta:ation 'ur'oses= "he amount of $eferre$ ta: 'rovi$e$ is +ase$ on the e:'ecte$ manner of realisation or settlement of the carryin0 amount of assets an$ lia+ilities, usin0 the enacte$ or su+stantively enacte$ rates of ta:ation= "he Com'any reco0nises a $eferre$ ta: asset to the e:tent that it is 'ro+a+le that ta:a+le 'rofits for the foreseea+le future %ill +e availa+le a0ainst %hich the asset can +e utilise$= 2eferre$ ta: assets are re$uce$ to the e:tent that it is no lon0er 'ro+a+le that the relate$ ta: +enefit %ill +e realise$= #urther, the Com'any reco0nises $eferre$ ta: asset / lia+ility on $eficit / sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment %hich is a$9uste$ a0ainst the relate$ $eficit / sur'lus=

%38

Property( plant and e+uip ent and depreciation )ro'erty, 'lant an$ e<ui'ment (e:ce't freehol$ lan$, leasehol$ lan$ an$ 'lant & machinery) are state$ at cost less accumulate$ $e'reciation an$ im'airment losses, if any= #reehol$ lan$, leasehol$ lan$ an$ 'lant & machinery are state$ at revalue$ amounts less accumulate$ $e'reciation= Ca'ital %or,>in>'ro0ress is state$ at cost= Cost of certain 'ro'erty, 'lant an$ e<ui'ment com'rises historical cost, e:chan0e $ifferences reco0nise$ in accor$ance %ith the 'revious #ourth Sche$ule to the !r$inance, cost of e:chan0e ris, cover in res'ect of forei0n currency loans o+taine$ for the ac<uisition of 'ro'erty, 'lant an$ e<ui'ment u'to the commencement of commercial 'ro$uction an$ the cost of +orro%in0s $urin0 construction 'erio$ in res'ect of loans ta,en for s'ecific 'ro9ects= 2e'reciation char0e is +ase$ on the strai0ht>line metho$ %here+y the cost or revalue$ amount of an asset is %ritten off to 'rofit an$ loss account over its estimate$ useful life after ta,in0 into account the resi$ual value, if material= "he cost of leasehol$ lan$ is amortise$ in e<ual installments over the lease 'erio$= 2e'reciation on a$$itions is char0e$ from the month in %hich the asset is availa+le for use an$ on $is'osals u' to the month of $is'osal= "he resi$ual value, $e'reciation metho$ an$ the useful lives of each 'art of 'ro'erty, 'lant an$ e<ui'ment that is si0nificant in relation to the total cost of the asset are revie%e$, an$ a$9uste$ if a''ro'riate, at each +alance sheet $ate= Sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment is cre$ite$ to the sur'lus on revaluation account= "o the e:tent of the incremental $e'reciation char0e$ on the revalue$ assets the relate$ sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment (net of $eferre$ ta:ation) is transferre$ $irectly to una''ro'riate$ 'rofit= Maintenance an$ normal re'airs are char0e$ to income as an$ %hen incurre$= 6m'rovements are ca'italise$ %hen it is 'ro+a+le that res'ective future economic +enefits %ill flo% to the Com'any an$ the cost of the item can +e measure$ relia+ly= *ssets re'lace$, if any, are $ereco0nise$=

86

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

8ains an$ losses on $is'osal of assets are ta,en to the 'rofit an$ loss account, an$ the relate$ sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment is transferre$ $irectly to retaine$ earnin0s (una''ro'riate$ 'rofits)= %30 "ntangi/le asset and a ortisation 6ntan0i+le assets %ith a finite useful life, such as certain soft%ares, licenses an$ 'ro'erty ri0hts, are ca'italise$ initially at cost an$ su+se<uently state$ at cost less accumulate$ amortisation an$ im'airment losses, if any= Su+se<uent e:'en$iture is ca'italise$ only %hen it increases the future economic +enefits em+o$ie$ in the s'ecific asset to %hich it relates= *ll other e:'en$itures are reco0nise$ in 'rofit an$ loss as incurre$= *mortisation is +ase$ on the cost of an asset less its resi$ual value= *mortisation is reco0nise$ in 'rofit an$ loss on a strai0htline +asis over the estimate$ useful lives of intan0i+le assets= *mortisation metho$s, useful lives an$ resi$ual values are revie%e$ at each re'ortin0 $ate an$ a$9uste$, if a''ro'riate= %3&0 " pair ent #inancial assets 6including receiva/les7 #inancial assets are assesse$ at each re'ortin0 $ate to $etermine %hether there is o+9ective evi$ence that they are im'aire$= * financial asset is im'aire$ if o+9ective evi$ence in$icates that a loss event has occurre$ after the initial reco0nition of the asset an$ that the loss event ha$ a ne0ative effect on the estimate$ future cash flo%s of that asset that can +e estimate$ relia+ly= !+9ective evi$ence that financial assets are im'aire$ may inclu$e $efault or $elin<uency +y a $e+tor, in$ications that a $e+tor or issuer %ill enter +an,ru'tcy= *ll in$ivi$ually si0nificant receiva+les are assesse$ for s'ecific im'airment= *ll in$ivi$ually si0nificant receiva+les foun$ not to +e s'ecifically im'aire$ are then collectively assesse$ for any im'airment that has +een incurre$ +ut not yet i$entifie$= 4eceiva+les that are not in$ivi$ually si0nificant are collectively assesse$ for im'airment +y 0rou'in0 to0ether receiva+les %ith similar ris, characteristics= *n im'airment loss in res'ect of a financial asset measure$ at amortise$ cost is calculate$ as the $ifference +et%een its carryin0 amount an$ the 'resent value of the estimate$ future cash flo%s $iscounte$ at the asset?s ori0inal effective interest rate= 5osses are reco0nise$ in 'rofit an$ loss an$ reflecte$ in an allo%ance account a0ainst receiva+les= 6nterest on the im'aire$ asset continues to +e reco0nise$ throu0h the un%in$in0 of the $iscount= ;hen a su+se<uent event causes the amount of im'airment loss to $ecrease, the $ecrease in im'airment loss is reverse$ throu0h 'rofit an$ loss account= $onB=inancial assets "he carryin0 amounts of non>financial assets other than inventories an$ $eferre$ ta: asset, are revie%e$ at each re'ortin0 $ate to $etermine %hether there is any in$ication of im'airment= 6f any such in$ication e:ists, then the asset?s recovera+le amount is estimate$= "he recovera+le amount of an asset or cash>0eneratin0 unit is the 0reater of its value in use an$ its fair value less costs to sell= 6n assessin0 value in use, the estimate$ future cash flo%s are $iscounte$ to their 'resent value usin0 a 're>ta: $iscount rate that reflects current mar,et assessment of the time value of money an$ the ris,s s'ecific to the asset= #or the 'ur'ose of im'airment testin0, assets that cannot +e teste$ in$ivi$ually are 0rou'e$ to0ether into the smallest 0rou' of assets that 0enerates cash inflo%s from continuin0 use that are lar0ely in$e'en$ent of the cash inflo%s of other assets or 0rou's of assets (the Jcash> 0eneratin0 unit, or C8IK)= "he Com'any?s cor'orate assets $o not 0enerate se'arate cash inflo%s= 6f there is an in$ication that a cor'orate asset may +e im'aire$, then the recovera+le amount is $etermine$ for the C8I to %hich the cor'orate asset +elon0s= *n im'airment loss is reco0nise$ if the carryin0 amount of an asset or its C8I e:cee$s its estimate$ recovera+le amount= 6m'airment losses are reco0nise$ in 'rofit an$ loss account= 6m'airment loss reco0nise$ in 'rior 'erio$s is assesse$ at each re'ortin0 $ate for any in$ications that the loss has $ecrease$ or no lon0er e:ists= *n im'airment loss is reverse$ if there has +een a chan0e in the estimates use$ to $etermine the recovera+le amount= *n im'airment loss is reverse$ only to the e:tent that the asset?s carryin0 amount $oes not e:cee$ the carryin0 amount that %oul$ have +een $etermine$, net of $e'reciation or amortisation, if no im'airment loss ha$ +een reco0nise$= %3&& "nvest ents 6nvestments in su+si$iary (6C6 )a,istan )o%er8en 5imite$) an$ un<uote$ e<uity securities classifie$ as availa+le for sale are state$ at cost less 'rovision for im'airment, if any=

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

8.

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

%3&%

#tores and spares Stores an$ s'ares are state$ at the lo%er of cost an$ net realisa+le value= Cost is $etermine$ usin0 the %ei0hte$ avera0e metho$=

%3&'

#toc-BinBtrade Stoc,>in>tra$e is value$ at lo%er of %ei0hte$ avera0e cost an$ estimate$ net realisa+le value= Cost com'rises all costs of 'urchase, costs of conversion an$ other costs incurre$ in +rin0in0 the inventories to their 'resent location an$ con$ition= .et realisa+le value si0nifies the estimate$ sellin0 'rice in the or$inary course of +usiness less net estimate$ costs of com'letion an$ sellin0 e:'enses=

%3&4

2rade de/ts and ot5er receiva/les "ra$e $e+ts an$ other receiva+les are reco0nise$ initially at fair value 'lus $irectly attri+uta+le cost, if any= * 'rovision for im'airment of tra$e an$ other receiva+les is esta+lishe$ %hen there is o+9ective evi$ence that the Com'any %ill not +e a+le to collect all amounts $ue accor$in0 to the ori0inal terms of receiva+les (4efer note A=/=3)=

%3&5

=oreign currency translation "ransactions $enominate$ in forei0n currencies are translate$ to )a, 4u'ees, at the forei0n e:chan0e rate 'revailin0 at the $ate of transaction= Monetary assets an$ lia+ilities in forei0n currencies are translate$ into )a, 4u'ees at the forei0n e:chan0e rates at the +alance sheet $ate= E:chan0e $ifferences are ta,en to the 'rofit an$ loss account=

%3&6

=unctional and presentation currency 6tems inclu$e$ in the financial statements are measure$ usin0 the currency of the 'rimary economic environment in %hich the Com'any o'erates= "he financial statements are 'resente$ in )a, 4u'ees, %hich is the Com'any?s functional an$ 'resentation currency=

%3&.

)evenue recognition H 4evenue from the sale of 0oo$s is reco0nise$ %hen the si0nificant ris,s an$ re%ar$s of o%nershi' have +een transferre$ to the customer= #or those 'ro$ucts %hich are often sol$ %ith a ri0ht of return, accumulate$ e:'erience is use$ to estimate an$ 'rovi$e for such returns at the time of sale= H Commission income is reco0nise$ on the $ate of shi'ment from su''liers= H )rofit on short>term $e'osits an$ mar,>u' on loan to su+si$iary is accounte$ for on a time>a''ortione$ +asis usin0 the effective interest rate metho$=

H 2ivi$en$ income is reco0nise$ %hen the ri0ht to receive $ivi$en$ is esta+lishe$= H "oll manufacturin0 income is reco0nise$ %hen services are ren$ere$= %3&8 =inancial e!pense and finance inco e #inancial e:'enses are reco0nise$ usin0 the effective interest rate metho$ an$ com'rise forei0n currency losses an$ mar,>u' / interest e:'ense on +orro%in0s= #inance income com'rises interest income on fun$s investe$= Mar,>u' / 6nterest income is reco0nise$ as it accrues in 'rofit an$ loss account, usin0 the effective interest rate metho$= %3&0 #eg ent reporting Se0ment re'ortin0 is +ase$ on the o'eratin0 (+usiness) se0ments of the Com'any= *n o'eratin0 se0ment is a com'onent of the Com'any that en0a0es in +usiness activities from %hich it may earn revenues an$ incur e:'enses, inclu$in0 revenues an$ e:'enses that relate to transactions %ith any of the Com'any?s other com'onents= *n o'eratin0 se0ment?s o'eratin0 results are revie%e$ re0ularly +y the CE! to ma,e $ecisions a+out resources to +e allocate$ to the se0ment an$ assess its 'erformance, an$ for %hich $iscrete financial information is availa+le= Se0ment results that are re'orte$ to the CE! inclu$e items $irectly attri+uta+le to a se0ment as %ell as those that can +e allocate$ on a reasona+le +asis= Inallocate$ items com'rise mainly cor'orate assets, income ta: assets, lia+ilities an$ relate$ income an$
88 *nnual 4e'ort 2030 "C" Pa-istan ?i ited

e:'en$iture= Se0ment ca'ital e:'en$iture is the total cost incurre$ $urin0 the 'erio$ to ac<uire 'ro'erty, 'lant an$ e<ui'ment= "he +usiness se0ments are en0a0e$ in 'rovi$in0 'ro$ucts or services %hich are su+9ect to ris,s an$ re%ar$s %hich $iffer from the ris,s an$ re%ar$s of other se0ments= Se0ments re'orte$ are )olyester, So$a *sh, )aints, 5ife Sciences an$ Chemicals, %hich also reflects the mana0ement structure of the Com'any= %3%0 =inance lease 5eases that transfer su+stantially all the ris,s an$ re%ar$s inci$ental to o%nershi' of an asset are classifie$ as finance leases= *ssets su+9ect to finance lease are state$ at amounts e<ual to the fair value or, if lo%er, the 'resent value of the minimum lease 'ayments= "he minimum lease 'ayments are a''ortione$ +et%een the finance char0e an$ the re$uction of the outstan$in0 lia+ility= *ssets ac<uire$ un$er finance leases are $e'reciate$ in accor$ance %ith the Com'any?s $e'reciation 'olicy on 'ro'erty, 'lant an$ e<ui'ment= "he finance cost is char0e$ to 'rofit an$ loss account an$ is inclu$e$ un$er financial char0es= %3%& ,perating lease J "Iara5 contract 5eases in %hich a si0nificant 'ortion of the ris,s an$ re%ar$s of o%nershi' are retaine$ +y the lessor are classifie$ as o'eratin0 leases= )ayments ma$e un$er o'eratin0 leases (net of any incentives receive$ from the lessor) are char0e$ to the 'rofit an$ loss account on a strai0ht>line +asis over the 'erio$ of the lease= )ayments ma$e un$er 69arah contracts are reco0nise$ in the 'rofit an$ loss account on a strai0ht>line +asis over the term of the lease= %3%% Cas5 and cas5 e+uivalents Cash an$ cash e<uivalents com'rise of cash in han$ an$ current an$ $e'osit accounts hel$ %ith +an,s= 4unnin0 finance facilities availe$ +y the Com'any, %hich are 'aya+le on $eman$ an$ form an inte0ral 'art of the Com'any?s cash mana0ement are inclu$e$ as 'art of cash an$ cash e<uivalents for the 'ur'ose of statement of cash flo%s= %3%' 1orrowings and t5eir cost &orro%in0s are reco0nise$ initially at fair value, net of transaction costs incurre$= &orro%in0 costs are reco0nise$ as an e:'ense in the 'erio$ in %hich these are incurre$ e:ce't to the e:tent of +orro%in0 costs that are $irectly attri+uta+le to the ac<uisition, construction or 'ro$uction of a <ualifyin0 asset= Such +orro%in0 costs, if any, are ca'italise$ as 'art of the cost of that asset= %3%4 =inancial lia/ilities *ll financial lia+ilities are initially reco0nise$ at fair value 'lus $irectly attri+uta+le cost, if any, an$ su+se<uently measure$ at amortise$ cost= %3%5 Derivative financial instru ents "he Com'any uses $erivative financial instruments to he$0e its e:'osure to forei0n e:chan0e an$ interest rate ris,s arisin0 from o'erational, financin0 an$ investment activities= 6n accor$ance %ith its treasury 'olicy, the Com'any $oes not hol$ or issue $erivative financial instruments for tra$in0 'ur'oses= Ho%ever, $erivatives that $o not <ualify for he$0e accountin0 are accounte$ for as tra$in0 instruments= %3%6 ,ffBsetting #inancial assets an$ lia+ilities are offset an$ the net amount is re'orte$ in the financial statements only %hen there is a le0ally enforcea+le ri0ht to set>off the reco0nise$ amount an$ the Com'any inten$s either to settle on a net +asis, or to realise the assets an$ to settle the lia+ilities simultaneously= %3%. *arnings per #5are "he Com'any 'resents +asic an$ $ilute$ earnin0s 'er share (E)S) $ata for its or$inary shares= &asic E)S is calculate$ +y $ivi$in0 the 'rofit after ta: attri+uta+le to or$inary sharehol$ers of the Com'any +y the %ei0hte$ avera0e num+er of or$inary shares outstan$in0 $urin0 the 'erio$=

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

80

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0

200A (.um+ers)

%0&0

200A

'3

"ssued( #u/scri/ed and PaidBup Capital !r$inary shares of 4s 30 each fully 'ai$ in cash !r$inary shares of 4s 30 each issue$ as fully 'ai$ for consi$eration other than cash un$er scheme of arran0ement for amal0amation !r$inary shares of 4s 30 each issue$ as fully 'ai$ +onus shares !r$inary shares issue$ 'ursuant to the Scheme as fully 'ai$ for consi$eration of investment in associate (note =3)

&%5(840(&00

32(,140,3A0

&(%58(40%

3,2(1,402

'&8(40% %5(%%.

31,4A2 2(,227

'(&85 %5%

,31( 2(2

&%(6&8('0& &'8(80%('00 '3& '3%

32,/31, A3 3 1,102, 00

&%6(&84 &('88(0%'

32/,314 3, 11,02

;ith effect from !cto+er 3, 2000 the )ure "ere'hthalic *ci$ ()"*) &usiness of the Com'any %as $emer0e$ un$er a Scheme of *rran0ement (Jthe SchemeK) $ate$ 2ecem+er 32, 2000 a''rove$ +y the sharehol$ers an$ sanctione$ +y the Hi0h Court of Sin$h= 6C6 !micron &=V=, %hich is a %holly o%ne$ su+si$iary of *,-o.o+el .=V=, hel$ 30(,22A,32( (200AG 30(,22A,32() or$inary shares of 4s 30 each at 2ecem+er 3, 2030= *,-o.o+el .=V=, ac<uire$ 6C6 )5C, I@, effective Lanuary 2, 2001, the 'arent com'any of 6C6 !micron &=V=, an$ +ecame the ultimate hol$in0 com'any of 6C6 )a,istan 5imite$= 6C6 )a,istan 5imite$ continues to +e the $irect su+si$iary of 6C6 !micron &=V== Capital )eserves Share 'remium > note 4=3 Ca'ital recei'ts > note 4=2 465(%50 586 465(845 4/(,2(A (1/ 4/(,14(

43

43&

Share 'remium inclu$es the 'remium amountin0 to 4s 0=A02 million receive$ on shares issue$ for the Com'any?s )olyester )lant installation in 3A10 an$ share 'remium of 4s 4/4= (7 million re'resentin0 the $ifference +et%een nominal value of 4s 30 'er share of 32,/31, A3 or$inary shares issue$ +y the Com'any an$ the mar,et value of 4s (A0=(43 million of these shares corres'on$in0 to 2(C hol$in0 ac<uire$ in 5otte )a,istan )"* 5imite$, an e:>associate, at the $ate of ac<uisition i=e= .ovem+er 2, 2003 an$ the num+er of shares that have +een issue$ %ere $etermine$ in accor$ance %ith the Scheme in the ratio +et%een mar,et value of the shares of t%o com'anies +ase$ on the mean of the mi$$le mar,et <uotation of the @arachi Stoc, E:chan0e over the ten tra$in0 $ays +et%een !cto+er 22, 2003 to .ovem+er 2, 2003= Ca'ital recei'ts re'resent the amount receive$ from various 6C6 )5C 0rou' com'anies overseas for the 'urchase of 'ro'erty, 'lant an$ e<ui'ment= "he remittin0 com'anies have no claim to their re'ayments= #urplus on )evaluation of Property( Plant and *+uip ent &alance as on Lanuary 3 5essG "ransfer to una''ro'riate$ 'rofit in res'ect of incremental $e'reciation char0e$ $urin0 the year net of $eferre$ ta: &alance as on 2ecem+er 3 0'&(846 A/2,7A(

43%

53

6%4(4047 00.('5%

( 0,A4A) A 3,14/

00

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 63 Provisions for nonB anage ent staff gratuity and eligi/le retired e ployeesM edical sc5e e B note 63& #taff )etire ent 1enefits
Pension 63&3& =unded Gratuity

200A 31 ,03A

%%%(04%

63&

%0&0 Gnfunded 2otal )ension #un$e$ 8ratuity

200A Infun$e$ "otal

25e a ounts recognised in t5e profit and loss account against defined /enefit sc5e es are as follows; Current service cost 6nterest cost E:'ecte$ return on 'lan assets "ermination cost 4eco0nition of actuarial loss .et char0e for the year 4.(0&0 &56(844 6&''(%507 B &05(&.5 &.5(..0 '&(885 56('0& 6'0(0%07 B &%(060 60('%6 .8(805 %&'(&45 6&.'(&.07 B &&.(%'5 %'6(&05 0(.4& 40(4%6 B B 8(8%4 58(00& 24,(2/ 3( ,/ 4 (A1,44A) 3 ,04 303,AA7 3A4,7(3 2/,22 /2,A2/ ( 3,A0 ) > 3 ,(12 70,121 (0,74A 23/,(/0 (3 0, (2) 3 ,04 33(,(7A 2/(,(7A 7,( ( 43,37 > > 7, 00 (/,001

63&3%

:ove ents in t5e net asset J 6lia/ility7 recognised in t5e /alance s5eet are as follows; !'enin0 +alance .et Char0e for the year > note /=3=3 Contri+utions / 'ayments $urin0 the year Closin0 +alance '&0(4'. 6&.5(..07 &08(0%6 '4%(584 ''(86. 660('%67 46(%04 &0(8'5 '5'('04 6%'6(&057 %45(%%0 '6%(4&0 6&8'(%587 658(00&7 &0(068 6%%'(&8&7 4 2 1,73/ (3A4,7(3) 27(,472 3A,4 7 /2,341 (70,121) 42,(47 ,1/7 00,1/4 (2/(,(7A) 31,03A ( , 04 (342,41A) ((/,001) 3(,2 A (31 ,2(1) D

63&3'

25e a ounts recognised in t5e /alance s5eet are as follows; #air value of 'lan assets > note /=3=( )resent value of $efine$ +enefit o+li0ation > note /=3=4 2eficit Inreco0nise$ actuarial loss 4eco0nise$ asset / (lia+ility) &('80(&.' 6&(54.(84&7 6&6.(6687 5&0(%5% '4%(584 '0&('04 655'('6'7 6&6%(0507 &8&(804 &0(8'5 &(..&(4.. 6%(&0&(%047 6'%0(.%.7 60%(&46 '6%(4&0 B 6'8&(84%7 6'8&(84%7 &58(66& 6%%'(&8&7 4 3,0 7, 3A (3,21(,127) (241,(01) (/7,A4( 3A,4 7 37,3(0 (4/2,A73) (34(,123) 37A,/11 ,1/7 3, (4,4/A (3,741,7A1) ( A4, 2A) 747,/ ( , 04 > ( 40,014) ( 40,014) 3(/,12/ (31 ,2(1) D

63&34

:ove ent in t5e present value of defined /enefit o/ligation; !'enin0 +alance Current service cost 6nterest cost &enefits 'ai$ "ermination cost *ctuarial loss )resent value of $efine$ +enefit o+li0ation at the en$ of the year &(%85(8%. 4.(0&0 &56(844 664(6&07 B &%%(..0 &(54.(84& 46%(0.& '&(885 56('0& 6'0(.447 B '%(050 55'('6' &(.48(.08 .8(805 %&'(&45 605('547 B &55(.%0 %(&0&(%04 '40(084 0(.4& 40(4%6 6&0(0687 B &0(650 '8&(84% 3,337,(2( 24,(2/ 3( ,/ 4 (21/,21/) 3 ,04 2/ , 1( 3,21(,127 442,477 2/,22 /2,A2/ (30 ,7/1) > (,33 4/2,A73 3,(/0,002 (0,74A 23/,(/0 ( A0,0(4) 3 ,04 2A1,4A1 3,741,7A1 2(A,714 7,( ( 43,37 (3(,2 A) > 4/,1 3 40,014

63&35

:ove ent in t5e fair value of plan assets; !'enin0 +alance E:'ecte$ return Contri+utions &enefits 'ai$ *ctuarial 0ain #air value of 'lan assets at the en$ of the year &(0'.('&0 &''(%50 &08(0%6 664(6&07 .5(%88 &('80(&.' '&.(&50 '0(0%0 46(%04 6'0(.447 &8(684 '0&('04 &('54(460 &.'(&.0 %45(%%0 605('547 0'(0.% &(..&(4.. B B B B B B 13(,/(1 A1,44A 27(,472 (21/,21/) 3 4,02/ 3,0 7, 3A 30,404 3,A0 42,(47 (30 ,7/1) /,0/4 37,3(0 3,32/,0/2 3 0, (2 31,03A ( A0,0(4) 370,0A0 3, (4,4/A > > > > > >

63&36

Fistorical infor ation *s at 2ecem+er 3 )resent Value of $efine$ +enefit o+li0ation #air value of 'lan assets 2eficit E:'erience a$9ustments on 'lan lia+ilities E:'erience a$9ustments on 'lan assets %0&0 %(48'(046 &(..&(4.. .&&(560 .D 5D 200A 2,011,112 3, (4,4/A 7 4,43 C 3 C 2001 3,13A,71/ 3,32/,0/2 /A ,724 3 C (27C) 2007 3,(((, 17 3, 32,A 1 242,44A 3/C 7C 200/ 3,2 /,41 3,0/7,30A 3/A, 74 3C (AC)

63&3.

:aIor categories J co position of plan assets are as follows; 2e+t instruments E<uity at mar,et value Cash

%0&0 6%D '0D 8D

200A (0C 2C 31C

Mortality of active em'loyees an$ 'ensioners %ill +e re'resente$ +y the 56C(A/>A1) "a+le= "he ta+le has +een rate$ $o%n three years for mortality of female 'ensioners an$ %i$o%s= "he return on 'lan assets %as assume$ to e<ual the $iscount rate= *ctual (loss) / return on 'lan assets $urin0 2030 %as 4s 2/7=342 million (200AG 4s 00=442 million)= "C" Pa-istan ?i ited *nnual 4e'ort 2030 0&

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 63&38 25e principal actuarial assu ptions at t5e reporting date were as follows; 2iscount rate E:'ecte$ return on 'lan assets #uture salary increases #uture 'ension increases &43%5D &43%5D &%300D 83.5D

200A

32=7(C 32=7(C 30=/0C 7= 1C

63&30 Me$ical cost tren$ is assume$ to follo% inflation= "he sensitivity to reflect the effect of a 3C movement in the assume$ me$ical cost tren$ %ere as follo%sG %0&0 6ncrease 2ecrease 83.5D Effect on the a00re0ate of the current service cost an$ interest cost Effect on the $efine$ +enefit o+li0ation '5(005 %0&(80. A=7(C 44,3 A (,02( 7=7(C 2,00 2((,217

"hese fi0ures are +ase$ on the latest actuarial valuation, as at 2ecem+er 3, 2030= "he valuation uses the )ro9ecte$ Init Cre$it metho$= *ctuarial 0ains an$ losses are amortise$ over the e:'ecte$ future service life of current mem+ers= D "he unfun$e$ lia+ility inclu$e$ in the a+ove ta+le inclu$es 4s 0=2 A million (200AG 4s 0=2 A million) 'ertainin0 to 6C6 )a,istan )o%er8en 5imite$= 63&3&0 "he Com'any contri+ute$ 4s /2=/A1 million (200AG 4s ((=(( million) an$ 4s (=2/A million (200AG 4s 2A= 23 million) to the 'rovi$ent fun$ an$ the $efine$ contri+ution su'erannuation fun$ res'ectively $urin0 the year= %0&0 ,pening .3 Deferred 2a! 6?ia/ility7 J Asset B net Deducti/le te porary differences "a: losses carrie$ for%ar$ )rovisions for retirement +enefits, $ou+tful $e+ts an$ others 2a!a/le te porary differences )ro'erty, 'lant an$ e<ui'ment B ''6('%& B &''(.84 B 4.0(&05 272,423 ((,74( (272,423) (3A,424) > /, 23 )eversal Closing !'enin0 200A Char0e Closin0

6&('6&(4&07 6&(0%5(0087

%&(066 &54(850

6&('40('5'7 68.0(%487

(3,0A1,170) (470,704) %0&0 &(0%0(565 &(08.(0'' &%5(56. '05(&00 &(&55(640 '0('&6 %04(&04 .6(&5' 80(.00 &&(65' %5'(.5% 4(544 00(&84 %0(000 &06(808 5(48%(0'.

(2/2,(4A) (((4, A4)

(3, /3,43A) (3,02(,0A1) 200A A/ ,AA2 2,270, 23 377,/31 2AA,/47 3,3(0,AA( (,A7( 3/4,(AA 33A,7/0 73,AA 30,30 241,727 4,(41 3 /,130 20,000 324,130 (,7AA,1A1

83

2rade and ,t5er Paya/les "ra$e cre$itors > note 1=3 &ills 'aya+le Sales ta:, e:cise an$ custom $uties *ccrue$ interest / return on unsecure$ loan > note 1=2 *ccrue$ e:'enses "echnical service fee / royalty ;or,ers? 'rofit 'artici'ation fun$ > note 1= ;or,ers? %elfare fun$ 2istri+utors? security $e'osits > 'aya+le on termination of $istri+utorshi' > note 1=4 Contractors? earnest / retention money *$vances from customers Inclaime$ $ivi$en$s )aya+le for ca'ital e:'en$iture )rovision for com'ensate$ a+sences > note 1=( !thers

0%

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 83& 25e a/ove /alances include a ounts due to following associated underta-ings; 6C6 )aints I@ ('art of *,-o.o+el 0rou') 6C6 )aints (*sia )acific) )te 5t$ ('art of *,-o.o+el 0rou') *,-o.o+el )aints Malaysia Marine )rotective 6nternational Coatin0 Malaysia ('art of *,-o.o+el 0rou') C&) 4esi$ual ('art of *,-o.o+el 0rou') *,-o.o+el .V *,-o.o+el #unctional Chemicals 6nternational )aint .etherlan$ ('art of *,-o.o+el 0rou') 6C6 )ac,a0in0 Coatin0s ('art of *,-o.o+el 0rou') *,-o.o+el #unctional Chemicals &V *,-o.o+el #unctional Chemicals )te 5t$ *,-o.o+el Surface Chemistry )te 5t$ 6C6 )aints "hailan$ ('art of *,-o.o+el 0rou') 6C6 )aints 6n$onesia ('art of *,-o.o+el 0rou') C4 .etherlan$s ('art of *,-o.o+el 0rou') *,-o.o+el Car 4efinishes &V 83% 83' "his re'resents amount 'aya+le to Mortar 6nvestments 6nternational 5imite$= @or-ersM profit participation fund &alance as on Lanuary 3 *llocation for the year > note 2A 6nterest on fun$s utilise$ in the Com'any?s +usinesses at /0=00 'ercent (200AG 43=2( 'ercent) 'er annum > note 21 5essG > *mount 'ai$ on +ehalf of the #un$ > 2e'osite$ %ith the 8overnment of )a,istan &alance as on 2ecem+er 3 834 835 03 03& &64(500 &06(.6& '6&('60 6(048 '68('08 .%(0&. 0%(&8. &64(%04 %04(&04 &.4 &5 B B &(&0. '6(%80 '(005 &54 &0. &&(50% %(8%. '(0&4 %5 B B %'(&0' 8%(5.'

200A

/,A33 2/,30( , A2 3,400 > > > > > > > > > 303 (, A > 4 ,241

341,234 3/3,122 30,0 / 2,30( 32,343 72,2/0 7(,212 347,(42 3/4,(AA

6nterest on security $e'osits from certain $istri+utors is 'aya+le at 33=( 'ercent (200AG 7=( 'ercent) 'er annum as s'ecifie$ in the res'ective a0reements= "his fi0ure is +ase$ on the actuarial valuation, as at 2ecem+er 3, 200A= Contingencies and Co it ents

Claims a0ainst the Com'any not ac,no%le$0e$ as $e+ts are as follo%sG 5ocal +o$ies Sales "a: authorities !thers &4(&.8 0&(''6 &'.(0'4 %4'(448 34,/ 3 A , 2 ( , A/ 3/3, (0

03%

* notice %as issue$ +y the Environmental )rotection *uthority (E)*) a0ainst the )aints factory locate$ at #ero-'ur 4oa$, 5ahore= )ursuant to this an or$er %as 'asse$ +y the E)* for violation of certain 'rovisions of the ?*ct?= "he Com'any is of the o'inion that the or$er %as not 9ustifie$ an$ has file$ an a''eal a0ainst the or$er in the Environmental "ri+unal in 5ahore, %hich is 'en$in0= 8uarantees issue$ +y the Com'any in res'ect of financial an$ o'erational o+li0ations of 5otte )a,istan )"* 5imite$ 'ursuant to the Scheme of arran0ement, amountin0 to 4s 2,3A0 million (200AG 4s 2,210 million) a0ainst %hich 5otte )a,istan )"* 5imite$ an$ @) Chemical Cor'oration 5imite$ have issue$ counter 0uarantees to the Com'any=

03'

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

0'

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 034 035 036 03.

200A

8uarantee issue$ +y the Com'any to a +an, in res'ect of financin0 o+taine$ +y Senior E:ecutives amounte$ to 4s ( million (200AG 4s ( million), in accor$ance %ith the terms of em'loyment= 8uarantee issue$ +y the Com'any of 4s 3 million (200AG 4s 3 )o%er8en 5imite$ for availin0 fun$e$ facility= million) to a +an, on +ehalf of its su+si$iary 6C6 )a,istan

Commitments in res'ect of ca'ital e:'en$iture amounte$ to 4s 3 1= ( million (200AG 4s 2 =17( million)= Commitments for rentals un$er o'eratin0 lease / i9arah contracts in res'ect of vehicles amountin0 to 4s 3/4=3(A million (200AG 4s 3A(=3// million) are as follo%sG Lear 2030 2033 2032 203 2034 )aya+le not later than one year )aya+le later than one year +ut not later than five years B 6.(4.0 56(.85 '%(.60 .(&'5 &64(&50 6.(4.0 06(680 &64(&50 //,74/ (1,3/( 4(, 0( 2 ,/10 3,270 3A(,3// //,74/ 321,420 3A(,3//

&03 &03&

Property( Plant and *+uip ent "he follo%in0 is a statement of 'ro'erty, 'lant an$ e<ui'mentG !'eratin0 'ro'erty, 'lant an$ e<ui'ment > note 30=2 Ca'ital %or,>in>'ro0ress > note 30=/ 8(6..(40' %&.(508 8(805(00& 1,1 (,203 1A,A0A A,22(,330

&03%

"he follo%in0 is a statement of o'eratin0 'ro'erty, 'lant an$ e<ui'mentG

?and =ree5old ?i e /eds ?ease5old on free5old land 1uildings ,n ,n free5old lease5old land land Plant and ac5inery )ailway sidings )olling stoc- and ve5icles =urniture and e+uip ent 2otal

%0&0 $et carrying value /asis Lear ended Dece /er '&( %0&0 !'enin0 net +oo, value (.&V) *$$ition/transfer (at cost) 2is'osal/transfer (at .&V) 2e'reciation char0e Closin0 net +oo, value (.&V) Gross carrying value /asis At Dece /er '&( %0&0 Cost/4evaluation *ccumulate$ 2e'reciation .et +oo, value Depreciation rate D per annu $et carrying value /asis Lear ended Dece /er '&( %000 !'enin0 net +oo, value (.&V) *$$ition/transfer (at cost) 2is'osal/transfer (at .&V) 2e'reciation char0e Closin0 net +oo, value (.&V) Gross carrying value /asis At Dece /er '&( %000 Cost/4evaluation *ccumulate$ 2e'reciation .et +oo, value Depreciation rate D per annu 04 *nnual 4e'ort 2030 "C" Pa-istan ?i ited

1 /,702 27,A 4 > > 1/4,/ /

2,1 7 > > (72) 2,7/(

/1,(3( 0,A10 ( 2) (A,100) 1A,//

22 ,233 47,4(( > ( /, 07) 2 4, (A

72(, 77 41,/ > (/1,77() 70(,2 (

/,71A,/41 (2 ,3// (31,173) (7 4,A A) /,((A,004

> > > > >

2/,012 1,724 (2,1/() (30,4A1) 23,44

3/2,12A 1,1 (,203 A2,21 77A,37( (3,0(4) (22,122) (( ,/70) (A34,0/3) 200, 11 1,/77,4A

1/4,/ / > 1/4,/ / >

(/7,7AA ((/(,0 4) 2,7/( 2 to 4 =

3/4,7(0 (7(,017) 1A,// to 7=(

A4A, 0A (734,A(0) 2 4, (A ( to 30

3, 43,71 37,2/7,73( (/ /,(41) (30,701,733) 70(,2 ( /,((A,004 2=( to 30 200A = to 30

2A7 (2A7) > =

32/,073 (304,/21) 23,44 30 to 2(

73A, ( 22,003,/A( ((31,A47) (3 , 24,202) 200, 11 1,/77,4A 30 to =

1 /,702 > > > 1 /,702

7,34A > > (4, 32) 2,1 7

71,2(/ > > (A,743) /1,(3(

224,/7/ 0,723 > ( 2,31/) 22 ,233

4((,A4( 2,/23 > (/ ,31A) 72(, 77

(,7( ,47/ 3,74 ,(04 (A,22A) (/A1,30 ) /,71A,/41

> > > > >

3,742 7,(/0 (2,077) (33,34 ) 2/,012

321,132 7,(3/,7(1 71,110 2,3A ,21/ ((4A) (33,1(() (44, 34) (1/2,A11) 3/2,12A 1,1 (,203

1 /,702 > 1 /,702 >

(/7,7AA ((/4,A/2) 2,1 7 2 to 4 =

3 ,120 (/(, 0() /1,(3( to 7=(

A03,1(4 (/71,/4 ) 22 ,233 ( to 30

3,2A ,A37 3/,7A0,1(1 ((/1,(40) (30,003,230) 72(, 77 /,71A,/41 2=( to 30 = to 30

2A7 (2A7) > =

320,(A1 (A4,(3/) 2/,012 30 to 2(

//1,A0A 23, 34,7(4 ((0/,010) (32,47A,(( ) 3/2,12A 1,1 (,203 30 to =

*mounts in 4s F000

%0&0 &03'

200A

Su+se<uent to revaluation on !cto+er 3, 3A(A an$ Se'tem+er 0, 2000, %hich ha$ resulte$ in a sur'lus of 4s 34=207 million an$ 4s 3,(/A=1/A million res'ectively, the lan$ an$ 'lant an$ machinery %ere revalue$ a0ain on 2ecem+er 3(, 200/ resultin0 in a net sur'lus of 4s //7=A/7 million= "he valuation %as con$ucte$ +y in$e'en$ent valuers= Valuations for 'lant an$ machinery %as the o'en mar,et value of the asset +ase$ on estimate$ 0ross re'lacement cost, $e'reciate$ to reflect the resi$ual service 'otential of the asset havin0 'ai$ $ue re0ar$ to a0e, con$ition an$ o+solescence= 5an$ %as value$ on the +asis of fair mar,et value= *s at 2ecem+er 3, 2030 'lant an$ machinery inclu$e$ e<ui'ments hel$ %ith Searle )a,istan 5imite$ an$ Ma'le )harmaceutical ()rivate) 5imite$ (toll manufacturers), havin0 cost an$ net +oo, values as follo%sG Cost .et +oo, value 4(&00 '(&00 ,200 2,(00

&034

&0343& Ha$ there +een no revaluation, the net +oo, value of s'ecific classes of o'eratin0 'ro'erty, 'lant an$ e<ui'ment %oul$ have amounte$ toG $et 1oo- 9alue #reehol$ lan$ )lant an$ machinery 4ollin0 stoc, an$ vehicles #urniture an$ e<ui'ment &035 "he $e'reciation char0e for the year has +een allocate$ as follo%sG Cost of sales > note 2( Sellin0 an$ $istri+ution e:'enses > note 2/ *$ministration an$ 0eneral e:'enses > note 27 &036 "he follo%in0 is a statement of ca'ital %or,>in>'ro0ressG Civil %or,s an$ +uil$in0s )lant an$ machinery Miscellaneous e<ui'ment *$vances to su''liers / contractors &03. '0(8'6 &'0(655 8(00' '8(&&4 %&.(508 (0,/ 4 31 ,A/( ,//4 323,/4/ 1A,A0A 858(4.0 &0(056 44(6%6 0&4(06& 13(,(4 32,72/ 4,73A 1/2,A11 48(86' 6('8&(880 %&(44' %00('88 6(65%(58' 20,A2A /,(7(,0 ( 2/,012 3/2,12A /,714,17(

2etails of o'eratin0 'ro'erty, 'lant an$ e<ui'ment $is'osals havin0 net +oo, value in e:cess of 4s (0,000 are as follo%sG
%0&0 :ode of sale Plant and ac5inery "en$er .e0otiation 27,0A( 4,310 32,3(7 711 34,A 1 , A2 4,A37 ,333 *lfa 5aval Mi$$leeast 5t$= an$ Muhamma$ *,ram 8houri, Man$i &ahau$$in *l Ha+i+, *%ami )aints, Saa$ contractor, *sian )aints, 4oomi )aints, @hurram Contractors, 5ahore Murta-a @han &a+ar an$ Sye$ #arhat *++as Lafri, @arachi Sye$ 8hulam Mustafa, 5ahore Ha+i+ullah @han, @arachi Cost Accu ulated $et /oodepreciation value #ale proceeds Particulars of /uyers

8as con$enser & Various items "intin0 Machines & 2is'enser )olling stoc- and ve5icles Hon$a City & "oyota Corolla Hon$a Motorcycle =urniture and e+uip ent ;ater coolin0 coil an$ Chiller

*uction *uction *uction

3,(30 10 4/7 200A

3A2

3, 31 77

3,A24 70 3A4

344

Plant and

ac5inery 21,(7/ 4,42A 2 ,01A 730 (,417 ,73A , 1 ,73A Hi>"ech Electronics & Machinery, @arachi Laffer an$ Sons=, Chau$hry )aint House, Color &an, an$ *%an &rothers, 5ahore "ufail 6<+al & M 6nam, 5ahore Hi>"ech Electronics & Machinery, @arachi
"C" Pa-istan ?i ited *nnual 4e'ort 2030 05

2ust e:traction unit an$ other items *uction "intin0 Machines .e0otiation )olling stoc- and ve5icles "oyota Corolla > 2 nos Hino 2um' "ruc,s .e0otiation *uction

3,413 1,101

7 4 7,(3A

747 3,21A

2,011 3,A02

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

&&3

"ntangi/le Assets #oftware $et carrying value /asis Lear ended Dece /er '& !'enin0 net +oo, value (.&V) *$$itions (at cost) *mortisation char0e Closin0 net +oo, value (.&V) Gross carrying a ount At Dece /er '& Cost *ccumulate$ amortisation .et +oo, value )ate of a ortisation D per annu ?icenses

%0&0 Gnder develop ent > /(, (2 > /(, (2 /(, (2 > /(, (2 > 200A 2otal

> (7, /4 (1,/0() 41,7(A 22/,34( (377, 1/) 41,7(A 20

> 17,3 / (23,34() /(,AA3 17,3 / (23,34() /(,AA3 20 to (0

> 20A,1(2 (2A,7(0) 310,302 71,/ (3A1,( 3) 310,302

$et carrying value /asis Lear ended Dece /er '& !'enin0 net +oo, value (.&V) *$$itions (at cost) *mortisation char0e Closin0 net +oo, value (.&V) Gross carrying a ount At Dece /er '& Cost *ccumulate$ amortisation .et +oo, value )ate of a ortisation D per annu

7,700 > (7,700) > 3/1,713 (3/1,713) > 20

> > > > > > > >

> > > > > > > > %0&0

7,700 > (7,700) > 3/1,713 (3/1,713) > 200A

&&3&

"he amortisation char0e for the year has +een allocate$ as follo%sG Cost of sales > note 2( Sellin0 an$ $istri+ution e:'enses > note 2/ *$ministration an$ 0eneral e:'enses > note 27 .(.46 %(565 &0(4'0 %0(.50 ,/ / / A ,42( 7,700

&%3

?ong 2er Gn+uoted #u/sidiary

"nvest ents B at cost

> 6C6 )a,istan )o%er8en 5imite$ (%holly o%ne$) > note 32=3 7,300,000 or$inary shares (200AG 7,300,000) of 4s 300 each ,t5ers *+uity security availa/le for sale > *ra+ian Sea Country Clu+ 5imite$

.&0(000

730,000

%(500 .&%(500

2,(00 732,(00

&%3&

"he value of the Com'any?s investment on the +asis of net assets of the Su+si$iary as $isclose$ in the au$ite$ financial statements for the year en$e$ 2ecem+er 3, 2030 amounte$ to 4s= 0/=70/ million (200AG 4s 2(1=42/ million)=

06

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 &'3 ?ongB2er ?oans B Considered good &..(..8 &46(486 '%4(%64

200A

2ue from Su+si$iary > Insecure$ > 5on0 term 'ortion > note 3 =3 2ue from E:ecutives an$ Em'loyees > note 3 =2 &'3& &'3%

200,000 3 0,103 0,103

"his re'resents loan 0iven to 6C6 )a,istan )o%er8en 5imite$ (%holly o%ne$ su+si$iary) of 4s 200 million carryin0 mar,>u' at months @6&!4 B 2C= "his loan is re'aya+le in nine e<ual semi annual installments commencin0 from !cto+er 3, 2033= Due fro Directors( *!ecutives and * ployees :otor car 303,147 3A,270 12,(77 Fouse /uilding (3,(/1 2(,424 2/,344 2otal &5'(4&5 44(604 &08(.%& 65(.6% %.(00. '.(.65 &46(486 60('06 ..(&80 &46(486 "otal 323,7(/ 2(,33A A/,/ 7 (4,2 7 20,07 4,3/4 3 0,103 70, 1 /0,4/ 3 0,103

2ue from 2irectors an$ E:ecutives > note 3 = 5essG 4eceiva+le %ithin one year > note 31

2ue from Em'loyees 5essG 4eceiva+le %ithin one year > note 31

!utstan$in0 for 'erio$G > less than three years +ut over one year > more than three years &'3' )econciliation of t5e carrying a ount of loans to Directors and *!ecutives; !'enin0 +alance at +e0innin0 of the year 2is+ursements 4e'ayments &alance at en$ of the year

&%&(.56 84(%&5 65%(5567 &5'(4&5

302,337 7A,2A ((A,/(4) 323,7(/

"he a+ove loan +alance inclu$es an amount of 4s 0= 3A million (200AG 4s 3=(A( million) in res'ect of house +uil$in0 relatin0 to ,ey mana0ement 'ersonnel= 5oan outstan$in0 $urin0 the year relates to Mr= *li *= *0a (2irector), %ho %as 'rovi$e$ this loan as 'er his terms of em'loyment= &'34 &'35 5oans for 'urchase of motor cars an$ house +uil$in0 are re'aya+le +et%een t%o to ten years= "hese loans are interest free an$ 0rante$ to the em'loyees inclu$in0 e:ecutives of the Com'any in accor$ance %ith their terms of em'loyment= "he ma:imum a00re0ate amount of lon0>term loans $ue from the E:ecutives at the en$ of any month $urin0 the year %as 4s 3/3=(0A million (200AG 4s 32(= /2 million)= ?ongB2er Deposits and Prepay ents %%(8.' &.(585 40(458 23,233 7,1/7 2A,071

&43

2e'osits )re'ayments

&53

#tores and #pares Stores (inclu$e in>transit 4s 20=0(1 millionS 200AG 4s 33=/11 million) S'ares Consuma+les 5essG )rovision for slo% movin0 an$ o+solete items > note 3(=3 '6(80& 5&%(0&0 ..(54. 6%6('6. &.5(..& 450(506 7,/3 4A ,7AA 7/,//0 /01,072 333,/73 4A/,403

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

0.

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 &53& :ove ent of provision in stores and spares )rovision as at Lanuary 3 Char0e for the year > note 27 ;rite>off )rovision as at 2ecem+er 3 &&&(6.& 64(&00 B &.5(..&

200A

304,//3 40,000 ( 2,AA0) 333,/73

&63

#toc-BinB2rade 4a% an$ 'ac,in0 material (inclu$e in>transit 4s 4 /=117 millionS 200AG 4s 23A=17 million) > note 3/=2 ;or,>in>'rocess #inishe$ 0oo$s (inclu$e in>transit 4s A=4A0 millionS 200AG 4s A=2 million) 5essG )rovision for slo% movin0 an$ o+solete stoc,s > note 3/=3 > 4a% material > #inishe$ 0oo$s 8.(46' 68(06% &55(5%5 '(.86('45 / ,A44 (4,1/A 331,13 ,244,(2( &(.86(00% 48(55' %(&0.(%%5 '(04&(8.0 3,212,703 1 ,22A 3,AA7,401 , / , 1

&63&

:ove ent of provision in stoc-BinBtrade )rovision as at Lanuary 3 Char0e for the year > note 27 4eversal ;rite>off )rovision as at 2ecem+er 3 &&8(8&' 55(5&0 B 6&8(.087 &55(5%5 33 ,1/( 1,/37 ((,000) (21,//A) 331,13

Stoc,s amountin0 to 4s .il (200AG 4s 31=// million) are measure$ at net realisa+le value an$ has +een %ritten $o%n +y 4s .il (200AG 4s 3=/2 million) to arrive at its net realisa+le value= &63% 4a% an$ 'ac,in0 materials inclu$e 4s 21 = 43 million (200AG 4s= 341=(24 million) %hich are hel$ %ith toll manufacturers namely Searle )a,istan 5imite$, Ma'le )harmaceutical ()rivate) 5imite$, E'la 5a+oratories ()rivate) 5imite$, &ree-e )harma ()rivate) 5imite$, .ovaMe$ )harmaceuticals an$ )olymer 6nternational ()rivate) 5imite$=

&.3

2rade De/ts Considered good > Secure$ > Insecure$ Considered dou/tful 5essG )rovision forG > 2ou+tful $e+ts > note A=/ > 2iscounts 'aya+le on sales '4'(400 440(%5' .0%(.4' .0%(86. 277,/ 3 24A,122 (27,4( A3A,4/

%6.(.55 0.4('65 &(%4%(&%0 '4'(400 &(585(6&0

(/,/01 132,/77 3,3/A,21( 277,/ 3 3,44/,A3/

08

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 &83 ?oans and Advances Considered good 5oans $ue fromG 2irectors an$ E:ecutives > note 3 =2 Em'loyees > note 3 =2 2ue from Su+si$iaryG > Current 'ortion of lon0 term loan > note 3 =3 > Insecure$ > note 31=3 *$vances toG 2irectors an$ E:ecutives > note 31=2 Em'loyees Contractors an$ su''liers !thers

200A

44(604 %.(00. %%(%%% %8'(000 '..(0&' 5(00' %(.6& %00(&%8 4(0&. %&%(800 500(.%% &0(6%0 60&('4% &0(6%0 500(.%%

2(,33A 20,07 > 21 ,000 21,3A2 /,032 /,/2/ /0, (( (,((4 71,(47 40/,7 A 1,320 434,1(A 1,320 40/,7 A

Considered dou/tful 5essG )rovision for $ou+tful loans an$ a$vances > note A=/

&83& &83%

* stan$+y finance facility of 4s 00 million (200AG 4s 00 million) is 'rovi$e$ to 6C6 )a,istan )o%er8en 5imite$ (%holly o%ne$ su+si$iary) %hich is re'aya+le on $eman$ at a mar,u' rate of months @6&!4 B 3=/(C (200AG months @6&!4 B 3=/(C)= "he ma:imum a00re0ate amount of a$vances $ue from the 2irectors an$ E:ecutives at the en$ of any month $urin0 the year %ere 4s =24( million an$ 4s 7= /4 million (200AG 4s =A/7 million an$ 4s 4=44/ million) res'ectively= 2rade Deposits and #5ortB2er "ra$e $e'osits Short>term 're'ayments Prepay ents %%(%45 4%&(4%0 44'(6.4 23,700 4 0,7 1 4(2,4 1

&03

%03

,t5er )eceiva/les Considered good 2uties, sales ta: an$ octroi refun$s $ue 2ue from *ssociate > note 20=3 & 20=2 6nsurance claims Commission receiva+le 6nterest income receiva+le from su+si$iary 6nterest income receiva+le 4e+ates receiva+le !thers %60(8&5 .8(.%& 0(065 4.('4& &6(805 4(5&6 B &.0(&&. 606(%80 &6(08% 6%'(%6% &6(08% 606(%80
"C" Pa-istan ?i ited

232,244 1(,22( 33,117 A,12A 3/,2 4,0(1 32 ,427 314,201 /77,333 37, 1 /A4,4A4 37, 1 /77,333
*nnual 4e'ort 2030 00

Considered dou/tful

5essG )rovision for $ou+tful receiva+les > note 20=

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 %03&

200A

"he ma:imum a00re0ate amount $ue from 6C6 !micron &=V= at the en$ of any month $urin0 the year %as 4s 10=7(( million (200AG 4s 13=A71 million)= "he a+ove +alances inclu$e amounts $ue from follo%in0 associate$ un$erta,in0sG 6C6 !micron &=V= %holly o%ne$ su+si$iary of *,-o.o+el .=V= 6C6 S%ire )aints (Shan0hai) 5imite$ ('art of *,-o.o+el 0rou') *,-o.o+el #unctional Chemicals .8(586 80 46 .8(.%& 10,420 4,10( > 1(,22(

%03%

%03'

Movement of 'rovision for $ou+tful receiva+les )rovision as at Lanuary 3 Char0e for the year > note 27 4eversal )rovision as at 2ecem+er 3 &.('8' &(004 6&(4057 &6(08% 37,( > (3(0) 37, 1

%&3

Cas5 and 1an- 1alances Short term $e'osits > note 23=3 Current accounts 6n han$ > Che<ues > Cash %(0%.(000 &(480(.%0 %'0(04% &4(&60 4(66&(8%% , (0,000 A /,7A( 3/A,/ 33,12 4,4/1,2(3

%&3&

"hese are 'lace$ %ith various +an,s %ith maturity u' to Lanuary 2033= "he mar,u' return on these $e'osits ran0es +et%een 33= 0C to 33=73C= #5ortB2er =inancing

%%3

"he facilities for runnin0 finance availa+le from various +an,s amounte$ to 4s 2,473 million (2ecem+er 3, 200AG 4s 2,/A3 million) an$ carrie$ mar,>u' $urin0 the 'erio$ ran0in0 from relevant @6&!4 B 0=7(C to =47C 'er annum %ith an avera0e mar,>u' rate as on 2ecem+er 3, 2030 at relevant @6&!4 B 3= 0C 'er annum (2ecem+er 3, 200AG 32=/4 to 37= 7 'ercent 'er annum)= "he facilities are secure$ +y hy'othecation char0e over the 'resent an$ future stoc,>in>tra$e an$ +oo, $e+ts of the Com'any an$ first 'ari 'assu char0e over 'lant an$ machinery of So$a *sh &usiness of the Com'any=

&00

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%'3

,perating #eg ent )esults

.ote Sales *f0hanistan &an0la$esh 6n$ia South *frica Inite$ *ra+ Emirates !thers 6nter>se0ment 5ocal Commission / "oll income "urnover %0&0 Polyester 200A #oda As5 %0&0 200A %0&0 Paints 200A ?ife #ciences %0&0 200A C5e icals %0&0 200A Co pany %0&0 200A

> > > > > > > > &8(0''(688 &8(0''(688 > &8(0''(688

> > > > > > > > 3 ,242, 4( 3 ,242, 4( > 3 ,242, 4(

&(%&0 &56(05' 4&0('50 0.(.00 %8(0'4 &4(%4% .&8(488 > .('50(54% 8(060(0'0 > 8(060(0'0

> 1/,47/ 27,112 7/,/0( 3/,((/ ,A1A 233,(01 > /, /0,21( /,(73,7A > /,(73,7A

&05(6%' > > > > > &05(6%' > 6(5&6(%58 6(6%&(88& > 6(6%&(88&

11,100 > > > > > 11,100 > /,3 /,722 /,22(,(22 > /,22(,(22

> > > > > > > > 4(&&5(&80 4(&&5(&80 > 4(&&5(&80

> > > > > 130 130 > ,740,0 0 ,740,140 > ,740,140

> &(60% > > > &&(%0. &%(800 4&.(4%0 %(580(%80 '(0&0(608 00(5'0 '(&&0(&4.

> /,111 > > 3(1 31,0(( 2(,303 27/,(7 2,(01,70( 2,130, 7A 14,17( 2,1A(,2(4

&06(8'' &58(645 4&0('50 0.(.00 %8(0'4 %5(440 8'.(0&0 4&.(4%0 '8(505(05. '0(850('8. 00(5'0 '0(040(0%6

11,100 A , /4 27,112 7/,/0( 3/,734 22,1(4 2/,23A 27/,(7 3,A11,017 2,(A0,17A 14,17( 2,/7(,7(4

Sales ta: E:cise 2uty Commission an$ $iscounts to $istri+utors an$ customers .et sales, commission & toll income Cost of sales 2( 8ross 'rofit Sellin0 an$ $istri+ution e:'enses

> >

> >

&(%6'(5.0 60(&60

3,07 ,30( (2, 21

000(500 54(&&5

133,A7A 4A,A47

&(&&0 >

> >

%00(.00 .(546

272,011 7,030

%(456(006 &%&(8%&

2,3(7,372 30A,21(

5%(0'' 5%(0'' &.(080(.55 &5(6%0(0%0 %('50(8%6

44,(37 44,(37 3 ,3A7,121 33,7A4,(A1 3,40 ,2 0

%8%(%.0 &(606(000 6(46'(0%& 5(0.4(&%4 &('88(80.

307,( A 3,2 2,A72 (, 1,123 A

086(%08 &(04&(0&% 4(680(860 '('''(66& &('4.(%08

3,00/,122 3,1/1,741 4, (/,774 2,A1/,74 3, 70,0 3

'5%(58. '5'(.06 '(.6&(4.4 %(68&('86 &(080(088

74,A27 74,A27 , /(,A3 2, 1 ,/34 A12,2AA

&50(6&& 448(866 %(66&(%8& %(&5&(0&0 5&0(%.&

3/A,022 441,320 2,447,3 4 3,A/A,214 477,1(0

&(8%4(600 4(40%(5%6 '5(54.(400 %8(86&(&&0 6(686(%00

3,702,127 ,A/A,214 21,70/,470 2 ,0 0,(71 (,/7(,1A2

,1A/,

3,442,412

2/

.%(54'

7(,2 /

%0'(&.'

332,22

.65(0.5

72(,334

40'(0'6

424,700

&40(80%

3 2,A03

&(6.4(.&0

3,470,374

*$ministration an$ 0eneral e:'enses 27 ,perating result %'3& %'3% #eg ent assets Gnallocated assets

%65(&0& %(0%%(00% &(&.%(060

2 A,333 3,011,11 /,2/2,004

%00(.08 805(0&6 6('60(&%8

2A3,123 3,0 1,4 1 /,042,/3(

448(8.' &''(%60 6(00.(580

13,A4A 2/2,A/1 2, 37,( (

&48(%4% 4'8(8&0 %(8.%(58'

3 7,307 420,4A2 3,42A,4

&45(00& %%'('88 &('44('84

321,07/ 23/,17 7/7,A30

&(%00(005 '(.&%(566 &.(.66(6'5 4(%64(0'. %%(0'0(6.%

3,371,0/4 ,027,/(4 3/,13A,4A7 4,/0 ,3/0 23,422,/(7 /,70 ,120 04,3A( 7,001,03(

%'3' %'34

#eg ent lia/ilities %(%'6(5&6 Gnallocated lia/ilities

2,2A7,/4/

&(055(050

3,AA1,/0A

480(080

7( , 30

&(&'&(8'0

3,

3, 1

46%(080

22,172

6(%65(5.4 '00(65' 6(5.5(%%.

%'35

%'36

$onBcas5 ite s ()rovision for non>mana0ement &0(.05 staff 0ratuity an$ eli0i+le retire$ em'loyees? me$ical scheme) Depreciation < a ortisation ''5(0'' Capital e!penditure &00(.85

30,24A

%8(40'

27,0(2

8(554

1,323

5('00

(,043

5(840

(,(4(

58(00&

(/,001

2/,A7/ 1 ,(7

4.5(600 460(040

4 /,11( 4/3,(01

00(644 &.6(%'8

72, 7/ 341,(AA

&5(645 %5(88'

34,(07 3/,41A

%6(880 '5(..0

3A,A44 /,03(

04'(8&& 8&6(.&6

170,/11 74/,314

%'3.

%'38

"nterBseg ent pricing "ransactions amon0 the +usiness se0ments are recor$e$ at arm?s len0th 'rices usin0 a$missi+le valuation metho$s= "here %as no ma9or customer of the Com'any %hich forme$ 30 'ercent or more of the Com'any?s revenue=

%'30

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&0&

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 %43 %43& )econciliations of reporta/le seg ent turnover( cost of sales( assets and lia/ilities 2urnover "otal turnover for re'orta+le se0ments > note 2 Elimination of inter>se0ment turnover "otal turnover %43% Cost of sales "otal cost of sales for re'orta+le se0ments > note 2( Elimination of inter>se0ment 'urchases "otal cost of sales %43' Assets "otal assets for re'orta+le se0ments "a:ation recovera+le &an, $e'osits > note 23 2ue from *ssociates > note 20=2 5on0 term 6nvestments > note 32 "otal *ssets %434 ?ia/ilities "otal lia+ilities for re'orta+le se0ments *ccrue$ interest / return on unsecure$ loan > note 1=2 Inclaime$ $ivi$en$s > note 1 "otal lia+ilities 6(%65(5.4 '05(&00 4(544 6(5.5(%%. &.(.66(6'5 545(05& %(0%.(000 .8(586 .&%(500 %%(0'0(6.% %8(86&(&&0 64&.(4%07 %8(44'(600 '0(040(0%6 64&.(4%07 '0(5'%(506

200A

2,/7(,7(4 (27/,(7 ) 2, AA,313

2 ,0 0,(71 (27/,(7 ) 22,7(4,00(

3/,13A,4A7 4/0,240 , (0,000 10,420 732,(00 23,422,/(7

/,70 ,120 2AA,/47 4,(41 7,001,03(

&0%

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%53

Cost of #ales
%0&0 )aw and pac-ing aterials consu ed !'enin0 stoc, )urchases 6nter>se0ment !thers > &'(6.4(6'0 &'(6.4(6'0 &4(%86(080 Closin0 stoc, > note 3/ 4a% material consume$ Salaries, %a0es an$ +enefits Stores an$ s'ares consume$ Conversion fee 'ai$ to contract manufacturers !il, 0as an$ electricity 4ent, rates an$ ta:es 6nsurance 4e'airs an$ maintenance 2e'reciation & amortisation char0e > note 30=( & 33=3 "echnical fees 4oyalty 8eneral e:'enses !'enin0 stoc, of %or,>in>'rocess Closin0 stoc, of %or,>in>'rocess > note 3/ Cost of goods anufactured !'enin0 stoc, of finishe$ 0oo$s #inishe$ 0oo$s 'urchase$ 686.(6&%7 &'(4&0('68 ''6(060 &&8(.%' > &('04(0.5 &(%'4 &.(.%% &(6.0 > 30,2/ ,1(2 30,2/ ,1(2 30,77(,A 2 (/32, (0) 30,3/ ,(12 2,34/ A0,30A > 143,024 14/ 3(,4A7 A(0 > &(8..(6%& &(8..(6%& &(05%(05. 6%0'(0.57 &(.48(08% 540(0&6 &&0(50' > &(06%(0%. &('.0 &6(%'6 605 > 3,2(3,1(4 3,2(3,1(4 3,/22,143 (74,4 /) 3,(41,40( 4AA,A(2 334,/7A > 3,40/,71( /(( 32,7(( 4 4&.(4%0 %(480(0%4 %(006(444 '(&0&(8&% 6%50(05&7 %(0'&(86& 06('&% '(.04 > %8(85& &5(80' %.(840 &5(585 27/,(7 2, 21,2(( 2,/04,121 2,A21,A01 (21(, /1) 2,/4 ,(40 13,2 4 4,47/ > 21,2 ( /,230 2/,(31 31,3A0 > 0.'(%&. 0.'(%&. &(&&0(.06 6%8%(0%&7 8'.(685 '(0.8 > %0&('68 > > % 0 33 > 77/,70A 77/,70A 117,7 0 (34/,41A) 743,243 ,0 7 > 31/,1AA > > > 0'0(&55 0'0(&55 &(0'0(%60 685(0.07 045(&00 '0(%&& '(5&0 4('4& .(5%' 8(6&% 0.' '(%4% > 140,470 140,470 A44,104 (300,334) 144,/A0 7,17A 2,103 4,43/ 1,321 A,1(7 00 ,374 4&.(4%0 &0(044(64. %0('6%(06. %&(580(8%4 6&(608(6%07 &0(88%(&05 &(0&4(686 %45(5'0 %05(.00 '('0'('.6 %.(&&8 6%(.8% %&(%0& 27/,(7 3(,4/3,340 3(,7 7,73 37,3/0,23( (3,231,7(7) 3(,A43,4(1 A(4,241 232,0/( 3A3, 3( 2,214,372 37,(/1 ((,07 22, /1 6&%('50 (32,010 .4(4'6 70,A17 %85('68 24,010 &46(480 333,023 &00(&&4 304, 4 &(%&8(.5. 3,422,(02 Polyester 200A #oda As5 %0&0 200A %0&0 Paints 200A ?ife #ciences %0&0 200A C5e icals %0&0 200A Co pany %0&0 200A

'&0(06' > > &06(805 54(&6' 6%4('887

20,(1( > > A2,341 301,1// ((4,3/ ) 33,A33,(A0 A2,244 > 32, 0 ,1 4

455(54% B B 8'(6%. B B 4(0%8(00. %0.(554 B 5(&'5(65&

42 ,233 > > /4,2/1 > > 4,070,7( ,340 > 4,30 ,1A

.5(%05 %'(%.0 B 6.(6'. &5(600 6&0(0.67 '(%00(.0& %46(586 64(800 '(60%(&..

/0,10 3A,27A > (7, 7 3A,1(3 (3(,/00) 2,A(0,30A 223,1(2 1(,700 ,2(7,//3

4%8 &(8&5 %(0.6 400 &&(8&& 6&%(4647 &(046(%08 8'.(505 &(58'(&88 '(466(00&

/A4 3,44( 3,001 4(2 (,024 (33,133) A21,00 47/,314 3,12/,237 ,2 0,404

&5(08. 5(.50 %4(86% &0(065 &(655 6.%57 &(0.0(%05 &4&(658 &(&0'(%'5 %(405(008

3 ,11/ ,030 24,470 30,4 3 4A/ (3,/(() A/3,11 273,7A7 112,2/2 2,33(,A42

866(%%5 '0(8'5 %6(0'8 %60(4'4 8'(%%0 648(55'7 %6(080(.05 &(04%(5'0 %(0'%(5'0 '0(055(.8'

13A,37A 2 ,7 4 2(,471 224,/72 3 4,2 7 (1 ,22A) 20,122, 1

&5(.45(404 500(%'6 0&('&6 &6('45(056

3, A(,237 2,7A4,37A 2(,033,7 4

Closin0 stoc, of finishe$ 0oo$s > note 3/ )rovision for o+solete stoc,s > note 27

6.%5(0%.7

((0A,2 /)

658(0&%7

(207,((4)

6%46(54.7

(24/,(1/)

6..4(8'07

(1 7,(0()

6%''(8'87

(343,/(1)

6%(0'0(&6'7

(3,A42,( A)

B &5(6%0(0%0

> 33,7A4,(A1

6%(6&57 5(0.4(&%4 ,1A/,

> A

6%&(0607 '('''(66&

(24,

2)

6&0(6.67 %(68&('86

(A,21() 2, 1 ,/34

6%0(%507 %(&5&(0&0

((,000) 3,A/A,214

655(5&07 %8(86&(&&0

( 1,/37) 2 ,0 0,(71

2,A1/,74

%53&

#taff retire ent /enefits Salaries, %a0es an$ +enefits inclu$e 4s 3/2=/13 million (200AG 4s 3A =0(( million) in res'ect of staff retirement +enefits=

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&0'

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%63

#elling and Distri/ution *!penses

Polyester %0&0 200A Salaries an$ +enefits 4e'airs an$ maintenance *$vertisin0 an$ 'u+licity e:'enses 4ent, rates an$ ta:es 6nsurance 5i0htin0, heatin0 an$ coolin0 2e'reciation & amortisation char0e > note 30=( & 33=3 !ut%ar$ frei0ht an$ han$lin0 "ravellin0 e:'enses )osta0e, tele0ram, tele'hone an$ tele: 8eneral e:'enses %0&0 #oda As5 200A %0&0 Paints 200A ?ife #ciences %0&0 200A C5e icals %0&0 200A Co pany %0&0 200A

46(4.' &4 &(&6' B > &5

40,(A3 322 3(,410 > > 37

%&(.50 &(0.0 &0(048 &(%8% &(0%8 &(088

24,(13 3,0/ 1A/ A22 4 4 17

%%0(8.0 '(0'' %5'(&%& &0('%' > 6(68'

3A(,/7/ ,( 7 2/2,31A 2 ,4A3 > 4,107

&0.(44% %(&.0 86(040 5(80. 6(5%% %(%0.

314, 44 3,1/2 /4,(3 4,404 ,1// 3,A/A

6&(606 &('8& 8&. .'0 '(5'0 %(&64

/ ,( 3 3,0 A17 3,312 , 40 3,A10

548(%40 8(586 '5%(008 %.(%4& &&(080 &%(%4.

(01,72 7,/37 44,0/( 2A,AAA 7,/40 A,/4/

> 0(6%6 .(0%% 5%0 .(.0& .%(54'

(A 7,071 ,20/ 42 1,2/0 7(,2 /

%.. &40(005 %(.0' &('%5 &%(580 %0'(&.'

27 /A,A72 3,112 774 30,4AA 332,22

> &.0(045 '0(08% .(046 44(06' .65(0.5 372,A(

>

&&(00' '5('%0 68(0'% &0(.%8 66(568 40'(0'6

33,3A( 22, A( / ,407 A,7(A (/,A1/ 424,700

%(&5& '&(5'8 &%(&.& '(688 %&(0&. &40(80%

3,714 21,01A 33,(/7 ,447 3(,A/3 3 2,A03

&'(5%& 405(5'' &%0(0&0 %'('&6 &5&(0'8 &(6.4(.&0

3 , /( 00,417 330,/(0 20,204 337,771 3,470,374

0,(11 (,103 2/,072 72(,334

%63&

#taff retire ent /enefits Salaries, %a0es an$ +enefits inclu$e 4s 13=(/A million (200AG 4s /7=(A million) in res'ect of staff retirement +enefits=

%.3

Ad inistration and General *!penses

Salaries an$ +enefits 4e'airs an$ maintenance *$vertisin0 an$ 'u+licity e:'enses 4ent, rates an$ ta:es 6nsurance 5i0htin0, heatin0 an$ coolin0 2e'reciation & amortisation char0e > note 30=( & 33=3 )rovision for $ou+tful $e+ts > tra$e > note A=/ > others > note 20= & A=/ )rovision for o+solete stoc,s > .ote 3/=3 )rovision for o+solete s'ares > .ote 3(=3 "ravellin0 e:'enses )osta0e, tele0ram, tele'hone an$ tele: 8eneral e:'enses &%0(%.& %(086 &(8'. %(6.5 .'5 '(6'. 3 4,( 3 2,73( 2,1(( 2,((3 ((2 ,372 &0&(64. '(0'0 '(68& %(054 &(858 6(%00 3A ,214 ,471 /,03 2,177 3,4(4 (,27 &68(5.0 0(&4. &('.% 5(060 60% 4(655 3 4,413 1,121 3,107 /, 02 7,4 1 ,(31 85(080 &(8.% .88 640 '(85. 4(664 A ,/72 3, (2 3,3 4 (4 2,3 7 ,(A0 8&(0'4 &(00' 866 680 4%5 &(4&6 72,47A 710 3,4(2 (17 3/ 3,077 65.(4&& &8(0'8 8(544 &%(0&8 .(56. %0(5.% /21,447 37,3( 3 ,2/3 32,1/0 33,1A7 3/,/ 0

&5(0.0 > >

/,

&0(.8& > '8&

3 , 47 > >

&5(4'0 &'8(%6% %(500

33,(7 /A,040 >

4(&%4 4.. 6%'

2,/31 7 >

0(65& 40& >

4,274 /43 >

64(065 &'0(&40 '(504

1,344 7(,2A1 >

(,/30 >

>

>

%(6&5

>

%&(060

24,

&0(6.6

A,21(

%0(%50

(,000

55(5&0

1,/37

50(&00 &0(&'8 %('%0 '.(4&' %65(&0&

40,000 /,4A3 3, 7

> 0(65% '(048 44(06& %00(.08

> 1,342 2,34A ((,104 2A3,123

5(000 &%(.'% 5(8&4 5.(65% 448(8.'

> 34,/2/ 1,AAA A3,00( 13,A4A

> 6(&0% %(80& %5(440 &48(%4%

> (,/ 3 2,(3/ 34,/22 3 7,307

> 6(.0& &(6.8 %0(806 &45(00&

> (, 4A 3,341 4,A7 321,07/

64(&00 45(505 &6(660 &85(4.& &(%00(005

40,000 40,2 A 3/,34A 22A, /A 3,371,0/4

2,A/( 2 A,333

%.3&

#taff retire ent /enefits Salaries, %a0es an$ +enefits inclu$e 4s 341=13 million (200AG 4s 3 2=772 million) in res'ect of staff retirement +enefits=

&04

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 %83 =inancial C5arges Mar,>u' on short>term financin0 6nterest on %or,ers? 'rofit 'artici'ation fun$ > note 1= 2iscountin0 char0es on receiva+les E:chan0e losses 6nterest on security $e'osits an$ others B 6(048 04(040 50(564 %(4%8 &6'(880 %03 ,t5er ,perating C5arges *u$itors? remuneration > note 2A=3 2onations > note 2A=2 ;or,ers? 'rofit 'artici'ation fun$ > note 1= ;or,ers? %elfare fun$ 8(%'5 %%(%.. &06(.6& .6(&5' '0'(4%6 %03& AuditorsM re uneration *u$it an$ 8rou' re'ortin0 fee Half yearly revie% an$ other certifications !ut of 'oc,et e:'enses 5(..0 &(8&5 650 8(%'5 %03%

200A

3,(17 2,30( 12, 1 74,4(4 7,032 3/7,(43

/,/00 3/,4/4 3/3,122 /2,704 247,(A0

4,A(0 3,03( / ( /,/00

2onations inclu$e 4s 3(=7A( million (200AG 4s 3 =A7 million) to 6C6 )a,istan #oun$ation (Hea$ office, @arachi)= Mr= ;a<ar * Mali,, Chief E:ecutiveS Mr= *li *srar *0a an$ Mr= #ero- 4i-vi, 2irectors of the Com'any an$ Mr= Suhail *slam @han an$ Ms=Seemi Saa$, E:ecutives of the Com'any are amon0st the "rustees of the #oun$ation= ,t5er ,perating "nco e "nco e fro related parties 60(05& &(080 /0,/2A 4,/ /

'03

4eturn on loan $ue from Su+si$iary Service fees from relate$ 'arties > note 0=3 )eturn fro ot5er financial assets

)rofit on short>term an$ call $e'osits "nco e fro Scra' sales 8ain on $is'osal of 'ro'erty, 'lant an$ e<ui'ment ,t5ers )rovisions an$ accruals no lon0er re<uire$ %ritten +ac, 6ncome on technical assistance 6ncome on sale of *$hesive to Hen,el Sun$ries nonBfinancial assets

%8%(006

3/7,AA(

48(.%4 &0(%&&

(/,A11 (,2A

&5(064 > > 5.(4%0 486(%56

304,7/1 244 34,//2 44,7/1 4(A,A1

'03&

"his re'resents amount char0e$ +y the Com'any for certain mana0ement an$ other services ren$ere$ to its relate$ 'arties (5otte )a,istan )"* 5imite$, u'to Se'tem+er 200A, an$ 6C6 )a,istan )o%er8en 5imite$), in accor$ance %ith the Service *0reements +ase$ on commercial terms +et%een the com'anies=

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&05

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 '&3 2a!ation Current )rior years "otal current ta: char0e 2eferre$ > note 7 .et ta: char0e$ > note 3=3 '&3& 2a! reconciliation )rofit +efore ta: "a: O (C )rior years? ta: char0e "a: im'act on income un$er #"4 of the current year )ermanent $ifference !ther .et ta: char0e$ '%3 *arnings per s5are B 1asic and diluted )rofit after ta:ation for the year %(4%8(8%6 '(.'&(5&6 &('06(0'& > %(00% > 66('''7 &('0%(600 &(45.(540 > &(45.(540 6&54(8507 &('0%(600

200A

4A0,13 (37,4 A) 47 , 74 ((4, A4 3,027,7/1

,072,(0/ 3,07(, 77 (37,4 A) (40,732) (,7/2 4,710 3,027,7/1

2,044,7 1

;ei0hte$ avera0e num+er of or$inary shares in issue $urin0 the year

$u /er of s5ares &'8(80%('00 3 1,102, 00 )upees

Earnin0s 'er share ''3 )e uneration of Directors and *!ecutives

&.350

34=7

"he a00re0ate amounts char0e$ in the financial statements for the remuneration, inclu$in0 all +enefits, to the Chairman, Chief E:ecutive, 2irectors an$ E:ecutives of the Com'any %ere as follo%sG C5air an %0&0 Mana0erial remuneration 4etirement +enefits 8rou' insurance 4ent an$ house maintenance Itilities Me$ical e:'enses .um+er of 'ersons &(%'0 > > > > > &(%'0 & 200A 3,3/2 > > > > > 3,3/2 3 C5ief *!ecutive %0&0 %5('6' 6('6% 4% 6(0%% ..5 0& '8(655 & 200A 23,3 ( (, 23 42 (,2/1 /47 20 2,/3/ 3 Directors %0&0 '4(%00 .(555 84 > > %%& 4%(060 4 200A ,1/ 7, 1 32/ > > 43A ( *!ecutives %0&0 200A 2otal %0&0 200A

50&(.%& 431,134 &44(.06 307,A13 5(06% '6(656 &0(66& '8& 4,(32 0, 30 3(,430 21 &48(&6' 322, /1

56%(5%' 474,A74 &58(.&' 320,/1( 5(&88 '.(4'& &0(0.' '8. 4,/10 0,A(7 3/,0 2 ( &54(&85 327,/ /

43,7A3 856(050 /AA, A(

0'8(0&' 774,A/4

&06

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

''3&

6n a$$ition to this, an amount of 4s 221=A million (200AG 4s 20A=1 million) on account of varia+le 'ay, to em'loyees, has +een reco0nise$ in the current year= "his amount is 'aya+le in 2033 after verification of achievements a0ainst tar0et= #urther, a s'ecial +onus of 4s 32=0 million (200AG 4s 21=A million) 'aya+le to certain em'loyees has +een reco0nise$ in the financial statements %hich is 'aya+le in 2033= !ut of varia+le 'ay reco0nise$ for 200A an$ 2001 follo%in0 'ayments %ere ma$eG Paid in %0&0 relating to %000 &'(&6' ''(5%0 &%5(444 0(&0% &8&('%8 )ai$ in 200A relatin0 to 2001 33,7/( 33,400 A2,7(2 7,3 3 3( ,041

Chief E:ecutive 2irectors E:ecutives !ther em'loyees

''3% ''3'

"he 2irectors an$ certain E:ecutives are 'rovi$e$ %ith free use of Com'any cars in accor$ance %ith their entitlement= "he Chief E:ecutive is 'rovi$e$ %ith Com'any maintaine$ furnishe$ accommo$ation an$ free use of Com'any car= *00re0ate amount char0e$ in the financial statements for remuneration to three .on>e:ecutive 2irectors %as 4s =22( million (200AG 4s =221 million)= "his inclu$es fees 'ai$ to $irectors amountin0 to 4s= 0=220 million (200AG 4s= 0=24A million) for atten$in0 +oar$ an$ other meetin0s %hich is not inclu$e$ a+ove= "he a+ove +alances inclu$e an amount of 4s 311=334 million (200AG 4s 343= (A million) on account of remuneration of ,ey mana0ement 'ersonnel out of %hich 4s 2/=274 million (200AG 4s 24= (/ million) relates to 'ost em'loyment +enefits= 2ransactions wit5 )elated Parties "he relate$ 'arties com'rise 'arent com'any (6C6 !micron &=V=), ultimate 'arent com'any (*,-o.o+el .=V=), relate$ 0rou' com'anies, local associate$ com'any, $irectors of the Com'any, com'anies %here $irectors also hol$ $irectorshi', ,ey em'loyees (note ) an$ staff retirement fun$s (note /)= 2etails of transactions %ith relate$ 'arties, other than those %hich have +een s'ecifically $isclose$ else%here in these financial statements are as follo%sG %0&0 #u/sidiary Co pany )urchase of 0oo$s, materials an$ services )rovision of services an$ other recei'ts 4eturn on loan to Su+si$iary 5oan to su+si$iary com'any > (net of re'ayment) Stan$ +y finance facility availe$ +y Su+si$iary Associated co panies )urchase of 0oo$s, materials an$ services )rovision of services an$ other recei'ts Sale of 0oo$s an$ materials 2ivi$en$s 2onations &&8(48. 4(600 &'&(000 &(05%(%0& &5(.05 (,7(0, ( 056(6.% &(080 60(05& > > /7/,00 3,A10 /0,/2A A/,000 21 ,000 200A

''34

'43

/,440 32/,42A 71A,231 3 ,A70

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&0.

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

'53

Plant Capacity and Annual Production > in metric tonnes e:ce't )aints %hich is in thousan$s of litresG %0&0 Annual $a e Plate Capacity )olyester So$a *sh > note (=3 )aints > note (=2 Chemicals > note (=2 So$ium &icar+onate &%%(000 '50(000 B > %0(000 Production *nnual .ame )late Ca'acity 322,000 (0,000 > > 20,000 200A )ro$uction

&%0(445 %.8(650 '4(.48 0(08% %'(.00

32 ,/42 2/A,(00 ,743 1,477 22,(10

'53& '53% '63

)ro$uction %as +elo% name 'late ca'acity $ue to 0as curtailment= "he ca'acity of )aints an$ Chemicals is in$etermina+le +ecause these are multi>'ro$uct 'lants= =air 9alue of =inancial Assets and ?ia/ilities "he carryin0 amounts of the financial assets an$ financial lia+ilities a''ro:imate their fair values an$ is $etermine$ on the +asis of non o+serva+le mar,et $ata=

'.3

=inancial )is- :anage ent "he Com'any?s activities e:'ose it to a variety of financial ris,sG mar,et ris, (inclu$in0 currency ris,, interest rate ris, an$ 'rice ris,), cre$it ris, an$ li<ui$ity ris,= "he Com'any?s overall ris, mana0ement 'olicy focuses on the un're$icta+ility of financial mar,ets an$ see,s to minimi-e 'otential a$verse effects on the Com'any?s financial 'erformance=

'.3&

)is- :anage ent =ra ewor"he &oar$ of 2irectors has overall res'onsi+ility for esta+lishment an$ over si0ht of the Com'any?s ris, mana0ement frame%or,= "he e:ecutives mana0ement team is res'onsi+le for $evelo'in0 an$ monitorin0 the Com'anyFs ris, mana0ement 'olicies= "he team re0ularly meets an$ any chan0es an$ com'liance issues are re'orte$ to the &oar$ of 2irectors throu0h the au$it committee= 4is, mana0ement systems are revie%e$ re0ularly +y the e:ecutive mana0ement team to reflect chan0es in mar,et con$itions an$ the Com'anyFs activities= "he Com'any, throu0h its trainin0 an$ mana0ement stan$ar$s an$ 'roce$ures, aims to $evelo' a $isci'line$ an$ constructive control environment in %hich all em'loyees un$erstan$ their roles an$ o+li0ations= "he au$it committee oversees com'liance +y mana0ement %ith the Com'anyFs ris, mana0ement 'olicies an$ 'roce$ures, an$ revie%s the a$e<uacy of the ris, mana0ement frame%or, in relation to the ris,s face$ +y the Com'any=

'83

:ar-et )isMar,et ris, is the ris, that the fair value or future cash flo%s of a financial instrument %ill fluctuate +ecause of chan0es in mar,et 'rices= Mar,et ris, com'rises of interest rate ris,, currency ris, an$ other 'rice ris,=

&08

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 '83& "nterest )ate )is-

200A

6nterest rate ris, is the ris, that the fair values of future cash flo%s of a financial instrument %ill fluctuate +ecause of chan0es in mar,et interest rates= *t the re'ortin0 $ate the interest rate 'rofile of Com'any?s interest>+earin0 financial instruments %ereG Carrying A ount =i!ed rate instru ents #inancial assets > .ote 23 #inancial lia+ilities > .ote 1 9aria/le rate instru ents #inancial assets > .ote 3 & 31 %(0%.(000 680(.007 %(846('00 48'(000 , (0,000 (73,AA ) ,271,007 41 ,000

#ensitivity analysis for fi!ed rate instru ents "he Com'any $oes not account for any fi:e$ rate financial assets an$ lia+ilities at fair value throu0h 'rofit or loss, therefore a chan0e in interest rates at the re'ortin0 $ate %oul$ not affect 'rofit an$ loss= #ensitivity analysis for varia/le rate instru ents 6f @6&!4 ha$ +een 3C hi0her / lo%er %ith all other varia+les hel$ constant, the im'act on the 'rofit after ta: for the year %oul$ have +een 4s 4=1 million (200AG 4s 4=1 million)= '83% =oreign currency ris#orei0n currency ris, is the ris, that the fair value or future cash flo%s of a financial instrument %ill fluctuate +ecause of chan0es in forei0n e:chan0e rates= #orei0n currency ris, arises mainly %here receiva+les an$ 'aya+les e:ist $ue to transactions entere$ in forei0n currencies= "he Com'any is e:'ose$ to forei0n currency ris, on sales, 'urchases an$ +orro%in0s, %hich, are entere$ in a currency other than )a, 4u'ees= Ho%ever, the for%ar$ forei0n e:chan0e contracts %ere not availa+le for im'orts in 2030 in accor$ance %ith State &an, of )a,istan instructions= #GD *G), G#D G1P EPL %0&0 "ra$e $e+ts > > A,/43 > > !ther receiva+les > 30,1(A 37,//( 33,132 > 2ue from *ssociates > note 20=2 > > 3 ( 71,(1/ > Cash an$ +an, +alances > > A1,227 > > > 30,1(A 32(,//1 A0, A1 > "ra$e an$ other 'aya+les > 307,71A 3,2 (,A3/ //2,2A4 > *ccrue$ interest / return on unsecure$ loan > note 1=2 > > 0(,30A > > 2ue to *ssociates > note 1=3 3( (A,(10 23,/07 3, 73 > 3( 3/7, /A 3,(/2,/ 2 // ,//( > Gross /alance s5eet e!posure 6&57 6&56(5&07 6&(4'6(0647 65.'(%6.7 B "ra$e $e+ts !ther receiva+les 2ue from *ssociates > note 20=2 Cash an$ +an, +alances "ra$e an$ other 'aya+les *ccrue$ interest / return on unsecure$ loan > note 1=2 2ue to *ssociates > note 1=3 8ross +alance sheet e:'osure > > > > > 4,73A > 2/,30( 0,124 ( 0,124) 2,100 > > > 2,100 (7,/4/ > (, 40 /2,A1/ (/0,31/) 200A 33,//7 32 ,427 4,10( /2,217 202,31/ 3,/17,7(A 2AA,/47 4,774 3,AA2,310 (3,71A,AA4) > > 10,420 > 10,420 (04,207 > 7,02A (33,2 / (4 0,13/) > > > > > (,2A > > (,2A ((,2A )

Si0nificant e:chan0e rates a''lie$ $urin0 the year %ere as follo%sG Average rate for t5e year %0&0 200A )upees per )upees EI4! IS2 8&) L)M S82 &&'300 853&8 &'&3.5 030. 6%355 33 =14 13=/A 327=1( 0=17 (/=(2

#pot rate as at Dece /er '& %0&0 200A )upees &&43'0 853.5 &'%3.% &305 6638.
"C" Pa-istan ?i ited

323= 7 14=24 3 7=13 0=A3 /0=0/

*nnual 4e'ort 2030 &00

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0

200A

#ensitivity analysis Every 3C increase or $ecrease in e:chan0e rate %ith all other varia+les hel$ constant %ill increase or $ecrease 'rofit after ta: for the year +y 4s 23=7 million (200AG 4s 2 =2 million)= '03 Credit )isCre$it ris, re'resents the accountin0 loss that %oul$ +e reco0nise$ at the re'ortin0 $ate if counter>'arties faile$ com'letely to 'erform as contracte$= "he Com'any $oes not have si0nificant e:'osure to any in$ivi$ual counter'arty= "o re$uce e:'osure to cre$it ris, the Com'any has $evelo'e$ a formal a''roval 'rocess %here+y cre$it limits are a''lie$ to its customers= "he mana0ement also continuously monitors the cre$it e:'osure to%ar$s the customers an$ ma,es 'rovision a0ainst those +alances consi$ere$ $ou+tful of recovery= "o miti0ate the ris,, the Com'any has a system of assi0nin0 cre$it limits to its customers +ase$ on an e:tensive evaluation +ase$ on customer 'rofile an$ 'ayment history= !utstan$in0 customer receiva+les are re0ularly monitore$= &usiness %ith customers is also secure$, %here 'ossi+le, +y %ay of inlan$ letters of cre$it, cash security $e'osit an$ +an, 0uarantees= "he Com'any?s ma:imum e:'osure to cre$it ris, at the re'ortin0 $ate is as follo%sG '03& =inancial Assets 5on0 "erm 6nvestments > note 32 5on0 term loans > note 3 5on0 term $e'osits > note 34 "ra$e $e+ts > note 37 5oans an$ a$vances > note 31 "ra$e $e'osits > note 3A !ther receiva+les > note 20 &an, +alances > note 23 .&%(500 '%4(%64 %%(8.' .0%(86. 500(.%% %%(%45 ''6(465 4(64.(66% .(440(508 '03% '03' "he Com'any has 'lace$ its fun$s %ith +an,s %hich are rate$ *>3 +y Stan$ar$ & )oor?s an$ )>3 +y Moo$y?s= =inancial Assets > Secure$ > Insecure$ 404(606 6(054(00% .(440(508 '034 "he a0ein0 of +an, +alances, tra$e $e+ts an$ loans an$ a$vances at the re'ortin0 $ate is as follo%sG .ot 'ast $ue Past due /ut not " paired; .ot more than three months Past due and " paired; more than three months an$ not more than si: months more than si: months an$ not more than nine months more than nine months an$ not more than one year more than one year 5essG )rovision forG > 2ou+tful $e+ts > 2ou+tful loans an$ a$vances '4'(400 &0(6%0 '54(&&0 6(0'&(%5&
&&0 *nnual 4e'ort 2030 "C" Pa-istan ?i ited

732,(00 0,103 23,233 A3A,4/ 40/,7 A 23,700 4/4,1/7 4,4(/,421 7, ,70A

(4(,2 A /,711,470 7, ,70A

5(80'(6.4 &%%(&'& '0(80' &%('%. %.(&65 %00(&.& 40&(68.

(,4/3,14A 213, 37 / ,002 2(, (2 4 , 71 3A ,41 /0/,( 2 277,/ 3 1,320 21(,7(3 (,712,/ 0

*mounts in 4s F000

%0&0 '035 "he ma:imum e:'osure to cre$it ris, for 'ast $ue an$ im'aire$ at the re'ortin0 $ate +y ty'e of counter'arty %asG ;holesale customers 4etail customers En$>user customers 5essG )rovision forG > 2ou+tful $e+ts > 2ou+tful loans an$ a$vances '4'(400 &0(6%0 '54(&&0 &'.(5.. '036 Movement of 'rovision for tra$e $e+ts an$ loans an$ a$vancesG 2rade De/ts !'enin0 *$$itional 'rovision > note 27 (;rite>off) / )rovision utilise$ a0ainst %rite>offs )rovision no lon0er re<uire$ %..(6'& &'0(&40 65.(4007 6&5(8.%7 '4'(400 ?oans and Advances 8(&%0 %(500 B B &0(6%0 2otal %85(.5& &4&(640 65.(4007 6&5(8.%7 '54(&&0 %0%(884 &00(60& &.0(&&% 40&(68.

200A

3 1,(30 214,401 31 ,/34 /0/,( 2 277,/ 3 1,320 21(,7(3 20,713

203,41 7(,2A1 A,/4/ (/7/) 21(,7(3

'0363& "he recommen$e$ a''roach for 'rovision is to assess the to' layer (coverin0 (0C) of tra$e receiva+les on an in$ivi$ual +asis an$ a''ly a $ynamic a''roach to the remain$er of receiva+les= "he 'roce$ure intro$uces a com'any>stan$ar$ for $ynamic 'rovisionin0G H )rovi$e im'airment loss for (0C of the outstan$in0 receiva+le %hen over$ue more than A0 $ays, an$ H )rovi$e an im'airment loss for 300C %hen over$ue more than 320 $ays= '03. Concentration )is"he sector %ise analysis of receiva+les, com'risin0 tra$e $e+ts, loans an$ a$vances an$ +an, +alances are 0iven +elo%G "e:tile 8lass Ceramics )a'er an$ &oar$ Chemicals )harmaceuticals Construction "rans'ort )aints &an, Su+si$iary !thers 5essG )rovision forG > 2ou+tful $e+ts > 2ou+tful loans an$ a$vances 66(500 &4(4&5 B %4(64& %40(.'& '6(880 &%(.0& '6(0.6 6%&(046 4(64.(66% %8'(000 400(.&0 6('85('6& '4'(400 &0(6%0 '54(&&0 6(0'&(%5&
"C" Pa-istan ?i ited

237,01( 22,/7A 2,A1( 31,3 7 2 2,/24 31,7AA 3,A72 /0,2/4 (3/, 01 4,4(/,421 21 ,000 201,300 /,0/1, 13 277,/ 3 1,320 21(,7(3 (,712,/ 0
*nnual 4e'ort 2030 &&&

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

403

?i+uidity )is5i<ui$ity 4is, is the ris, that an entity %ill encounter $ifficulty in meetin0 o+li0ations associate$ %ith financial lia+ilities= )ru$ent li<ui$ity ris, mana0ement im'lies maintainin0 sufficient cash an$ mar,eta+le securities an$ the availa+ility of fun$in0 throu0h an a$e<uate amount of committe$ cre$it facilities= Com'any?s treasury aims at maintainin0 fle:i+ility in fun$in0 +y ,ee'in0 committe$ cre$it lines availa+le= "he ta+le +elo% analyse the Com'any?s financial lia+ilities into relevant maturity 0rou'in0s +ase$ on the remainin0 'erio$ at the +alance sheet to the maturity $ate= Carrying a ount =inancial lia/ilities "ra$e cre$itors > note 1 &ills 'aya+le > note 1 *ccrue$ interest / return on unsecure$ loan > note 1=2 *ccrue$ e:'enses > note 1 "echnical service fee / 4oyalty > note 1 2istri+utors? security $e'osits > 'aya+le on termination of $istri+utorshi' > note 1 & note 1=4 Contractors? earnest / retention money > note 1 Inclaime$ $ivi$en$s > note 1 )aya+le for ca'ital e:'en$iture > note 1 !thers > note 1 3,020,(/( 3,A17,A 0(,30A 3,3((,/4A 0, 3/ 10,700 33,/( 4,(44 AA,314 30/,101 4(80%(46& 3,020,(/( 3,A17,A 0(,30A 3,3((,/4A 0, 3/ 1A,A13 33,/( 4,(44 AA,314 30/,101 4(8&&(.4% (3,020,(/() (3,A17,A ) ( 0(,30A) (3,3((,/4A) ( 0, 3/) (1A,A13) (33,/( ) (4,(44) (AA,314) (30/,101) 64(8&&(.4%7 Contractual cas5 flows %0&0 ?ess t5an one year

6t is not e:'ecte$ that the cash flo%s inclu$e$ in the maturity analysis coul$ occur si0nificantly earlier, or at si0nificantly $ifferent amount= 200A =inancial lia/ilities "ra$e cre$itors > note 1 &ills 'aya+le > note 1 *ccrue$ interest / return on unsecure$ loan > note 1=2 *ccrue$ e:'enses > note 1 "echnical service fee / 4oyalty > note 1 2istri+utors? security $e'osits > 'aya+le on termination of $istri+utorshi' > note 1 & note 1=4 Contractors? earnest / retention money > note 1 Inclaime$ $ivi$en$s > note 1 )aya+le for ca'ital e:'en$iture > note 1 !thers > note 1 A/ ,AA2 2,270, 23 2AA,/47 3,3(0,AA( (,A7( 73,AA 30,30 4,(41 3 /,130 324,130 (,0/A,3A4 A/ ,AA2 2,270, 23 2AA,/47 3,3(0,AA( (,A7( 77, A2 30,30 4,(41 3 /,130 324,130 (,074,(A (A/ ,AA2) (2,270, 23) (2AA,/47) (3,3(0,AA() ( (,A7() (77, A2) (30,30 ) (4,(41) (3 /,130) (324,130) ((,074,(A )

&&%

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

4&3

Capital )is- :anage ent "he Com'any?s o+9ective %hen mana0in0 ca'ital is to safe 0uar$ the Com'any?s a+ility to continue as a 0oin0 concern so that it can continue to 'rovi$e returns for sharehol$ers an$ +enefits for other sta,ehol$ersS an$ to maintain a stron0 ca'ital +ase to su''ort the sustaine$ $evelo'ment of its +usinesses= "he Com'any mana0es its ca'ital structure +y monitorin0 return on net assets an$ ma,es a$9ustments to it in the li0ht of chan0es in economic con$itions= 6n or$er to maintain or a$9ust the ca'ital structure, the Com'any may a$9ust the amount of $ivi$en$ 'ai$ to sharehol$ers or issue ne% shares=

4%3

Accounting *sti ates and Eudge ents "nco e 2a!es "he Com'any ta,es into account the current income ta: la% an$ $ecisions ta,en +y a''ellate authorities= 6nstances %here the Com'any?s vie% $iffers from the vie% ta,en +y the income ta: $e'artment at the assessment sta0e an$ %here the Com'any consi$ers that its vie% on items of material nature is in accor$ance %ith la%, the amounts are sho%n as contin0ent lia+ilities (unless there is remote 'ossi+ility of transfer of +enefits)= "he 6ncome "a: *''ellate "ri+unal earlier set asi$e the assessment for the assessment year 3AA1>AA on the issues of $ate of commissionin0 of )"* 'lant & $e'reciation thereon, restriction of cost of ca'italisation of )"* 'lant an$ a$$ition to income in res'ect of trial 'ro$uction stoc,s= "he re>assessment %as finalise$ +y the $e'artment $urin0 the year 0ivin0 rise to an a$$itional ta: $eman$= "he Com'any has file$ an a''eal a0ainst the sai$ or$er +efore the C6"(*''eals), hearin0 of a''eal has +een com'lete$ an$ the or$er is a%aite$= "he ta: $e'artment reo'ene$ the income ta: assessment for the assessment year 2003>2002 on the 0roun$ that $emer0er of )"* +usiness from 6C6 )a,istan 5t$= %as effective from the com'letion $ate i=e= *u0ust /, 2003= "his %as challen0e$ +y the Com'any in the Hi0h Court %hich u'hel$ the Com'anyFs contention that the $e'artment $i$ not have the ri0ht to reo'en this finalise$ assessment= "he $e'artment file$ an a''eal in the Su'reme Court a0ainst the Hi0h CourtFs or$er= "he a''eal %as $ismisse$ +y the Su'reme Court= #or the assessment year 2002>200 on recei't of notice un$er section /2 of the 6ncome "a: !r$inance, 3A7A, the Com'any ha$ file$ a %rit 'etition in the Su'reme Court challen0in0 the ta: $e'artmentFs notice that the effective $ate of )"*Fs $emer0er %as *u0ust /, 2003 rather than the effective $ate 0iven in the Scheme of *rran0ement as !cto+er 3, 2000= "hat notice ha$ raise$ certain issues relatin0 to vestin0 of )"* assets +y the com'any %hich has +een settle$ in the assessment year 2003>2002= ;hile this case is 'en$in0 for a$9u$ication, in vie% of the Su'reme Court?s $ecision relatin0 to assessment year 2003>2002 it is unli,ely that the $e'artment can ta,e an a$verse action= ;hilst amen$in0 the assessment for the "a: Mear 200 an$ 2004, ta: $e'artment has ta,en certain action in the or$er, consi$ere$ +y the $e'artment as J'rotective assessmentK on the matter of una+sor+e$ $e'reciation carrie$ for%ar$= 6t is the Com'anyFs contention that such an action is un%arrante$= *n a''eal +efore the C6" (*''eals) , on the matter has +een file$ %hich is 'en$in0= "he very +asis of such an action have also +een challen0e$ +efore the Hi0h Court of Sin$h %hich are 'en$in0 for hearin0= ;hile this case is 'en$in0 for a$9u$ication, in vie% of the Su'reme Court?s $ecision relatin0 to assessment year 2003>2002 it is unli,ely that the $e'artment can ta,e an a$verse action= .otice un$er section 223 of the 6ncome "a: !r$inance 2003 for rectification of $eeme$ assessment or$er for the "a: Mear 200( has +een issue$ to $isallo% una+sor+e$ $e'reciation carrie$ for%ar$= * %rit 'etition a0ainst the sai$ notice has +een file$ %ith the Hi0h Court of Sin$h %hich is 'en$in0 for hearin0= ;hile this case is 'en$in0 for a$9u$ication, in vie% of the Su'reme Court?s $ecision relatin0 to assessment year 2003>2002 it is unli,ely that the $e'artment can ta,e an a$verse action= Pension and Gratuity Certain actuarial assum'tions have +een a$o'te$ as $isclose$ in note / to the financial statements for valuation of 'resent value of $efine$ +enefit o+li0ations an$ fair value of 'lan assets= *ny chan0es in these assum'tions in future years mi0ht affect unreco0nise$ 0ains an$ losses in those years=

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&&'

$otes to t5e =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

Property( plant and e+uip ent "he estimates for revalue$ amounts, if any, of $ifferent classes of 'ro'erty, 'lant an$ e<ui'ment, are +ase$ on valuation 'erforme$ +y e:ternal 'rofessional valuers an$ recommen$ation of technical teams of the Com'any= "he sai$ recommen$ations also inclu$e estimates %ith res'ect to resi$ual values an$ $e'recia+le lives= #urther, the Com'any revie%s the value of the assets for 'ossi+le im'airment on an annual +asis= "he future cash flo%s use$ in the im'airment testin0 of assets is +ase$ on mana0ement?s +est estimates %hich may chan0e in future 'erio$s= *ny chan0e in the estimates in future years mi0ht affect the carryin0 amounts of the res'ective items of 'ro'erty, 'lant an$ e<ui'ments %ith a corres'on$in0 affect on the $e'reciation char0e an$ im'airment=

4'3

#tandards or "nterpretations not yet effective "he follo%in0 stan$ar$s, amen$ments an$ inter'retations of a''rove$ accountin0 stan$ar$s are effective for accountin0 'erio$s +e0innin0 on or after Lanuary 3, 2033= "hese stan$ar$s are either not relevant to the Com'any?s o'erations or are not e:'ecte$ to have si0nificant im'act on the Com'any?s financial statementsG A end ent to "A# '% =inancial "nstru ents; Presentation B Classification of )ig5ts "ssues 6effective for annual periods /eginning on or after =e/ruary 0&( %0&073 "he 6*S& amen$e$ 6*S 2 to allo% ri0hts, o'tions or %arrants to ac<uire a fi:e$ num+er of the entityFs o%n e<uity instruments for a fi:e$ amount of any currency to +e classifie$ as e<uity instruments 'rovi$e$ the entity offers the ri0hts, o'tions or %arrants 'ro rata to all of its e:istin0 o%ners of the same class of its o%n non>$erivative e<uity instruments= "his inter'retation has no im'act on the Com'any?s financial statements= "=)"C &0 *!tinguis5ing =inancial ?ia/ilities wit5 *+uity "nstru ents 6effective for annual periods /eginning on or after Euly 0&( %0&073 "his inter'retation 'rovi$es 0ui$ance on the accountin0 for $e+t for e<uity s%a's= "his inter'retation has no im'act on Com'any?s financial statements= "A# %4 )elated Party Disclosures 6revised %0007 B effective for annual periods /eginning on or after Eanuary 0&( %0&&3 "he revision amen$s the $efinition of a relate$ 'arty an$ mo$ifies certain relate$ 'arty $isclosure re<uirements for 0overnmentrelate$ entities= "he amen$ment in future may result in certain chan0es in $isclosures= A end ents to "=)"C &4 "A# &0 B 25e ?i it on a Defined 1enefit Assets( :ini u =unding )e+uire ents and t5eir "nteraction 6effective for annual periods /eginning on or after Eanuary 0&( %0&&73 "hese amen$ments remove uninten$e$ conse<uences arisin0 from the treatment of 're'ayments %here there is a minimum fun$in0 re<uirement= "hese amen$ments result in 're'ayments of contri+utions in certain circumstances +ein0 reco0nise$ as an asset rather than an e:'ense= "his amen$ment is not li,ely to have any im'act on Com'any?s financial statements= " prove ents to "=)#s %0&0 > 6n May 2030, the 6*S& issue$ im'rovements to 6#4Ss 2030, %hich com'rise of 33 amen$ments to 7 stan$ar$s= Effective $ates, early a''lication an$ transitional re<uirements are a$$resse$ on a stan$ar$ +y stan$ar$ +asis= "he ma9ority of amen$ments are effective for annual 'erio$s +e0innin0 on or after Lanuary 3, 2033= "he amen$ments inclu$e list of events or transactions that re<uire $isclosure in the interim financial statements an$ fair value of a%ar$ cre$its un$er the customer loyalty 'ro0rammes to ta,e into account the amount of $iscounts or incentives that other%ise %oul$ +e offere$ to customers that have not earne$ the a%ar$ cre$its= Certain of these amen$ments %ill result in increase$ $isclosures in the financial statements= A end ents to "A# &% B deferred ta! on invest ent property 6effective for annual periods /eginning on or after Eanuary &( %0&%7= "he 2030 amen$ment 'rovi$es an e:ce'tion to the measurement 'rinci'le in res'ect of investment 'ro'erty measure$ usin0 the fair value mo$el in accor$ance %ith 6*S 40 6nvestment )ro'erty= "he amen$ment has no im'act on financial statements of the Com'any= A end ents to "=)# . B Disclosures B 2ransfers of =inancial Assets 6effective for annual periods /eginning on or after Euly &( %0&&73 "he amen$ments intro$uce ne% $isclosure re<uirements a+out transfers of financial assets inclu$in0 $isclosures for financial assets that are not $ereco0nise$ in their entiretyS an$ financial assets that are $ereco0nise$ in their entirety +ut for %hich the entity retains continuin0 involvement= "hese amen$ments %ill result in increase$ $isclosures in the financial statements=

&&4

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

443

Dividend "he $irectors in their meetin0 hel$ on #e+ruary 3/, 2033 have recommen$e$ a final $ivi$en$ of 4s 32=00 'er share (200AG 4s 4=(0 'er share) in res'ect of year en$e$ 2ecem+er 3, 2030= "he financial statements for the year en$e$ 2ecem+er 3, 2030 $o not inclu$e the effect of the a+ove $ivi$en$ %hich %ill +e accounte$ for in the 'erio$ in %hich it is a''rove$=

453

Date of Aut5orisation "hese financial statements %ere authorise$ for issue in the &oar$ of 2irectors meetin0 hel$ on #e+ruary 3/, 2033=

463

General

463& #i0ures have +een roun$e$ off to the nearest thousan$ ru'ees e:ce't state$ other%ise= 463% Corresponding =igures Corres'on$in0 fi0ures have +een rearran0e$ an$ reclassifie$, %herever necessary, for +etter 'resentation an$ $isclosure= )eclassification fro co ponent )eclassification to co ponent *$ministration an$ 8eneral E:'enses >*$vertisin0 an$ 'u+licity e:'enses Sellin0 an$ 2istri+ution E:'enses >5i0htin0, heatin0 an$ coolin0 A ounts in )s M000 3,107

*$ministration an$ 8eneral E:'enses >8eneral e:'enses Sellin0 an$ 2istri+ution E:'enses >8eneral e:'enses

3,774

: E Eaffer

Chairman / 2irector

@a+ar A :ali-

Chief E:ecutive

Chief #inancial !fficer

=ero> )i>vi

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&&5

Co parison of )esults for 2en Lears

*s at 2ecem+er 3

%00& 1alance #5eet E<uity an$ 4evaluation 4eserve .on Current 5ia+ility Current 5ia+ilities 2otal *+uity and ?ia/ilities .on Current *ssets Current *ssets 2otal Assets Profit and ?oss Account "urnover .et sales, commission & toll income Cost of sales 8ross 'rofit !'eratin0 result )rofit +efore ta:ation )rofit after ta:ation #u ary of Cas5 =lows Cash 0enerate$ from o'erations .et cash 0enerate$ from o'eratin0 activities .et cash use$ in investin0 activities .et cash use$ in financin0 activities Cash an$ cash e<uivalents at 2ecem+er 3 (, 14,(13 //,37 7,A4(,47( 3 , A/,22A 1,/1(,242 4,730,A17 3 , A/,22A

%00%

/,77(,4 1 71,1A( /,A 2,(43 3 ,71/,174 A,3/1,374 4,/31,700 3 ,71/,174

32,13(,4 3 30,(/A,(7 1,304,3/A 2,4/(,404 3, A1,1/2 /3A,777 (//,/31

3(,07 ,13 32,231,A 7 A,1A3,142 2, 27,0A( 3,077,334 72 ,0A4 3,1(4,7 2

2,342, (4 A10,714 (711,A/2) 70,/(2 447,(((

3,13A,224 3,02/,( / ( 2,(4A) (A/(,7 0) 47(,132

)atios Profita/ility )atios 8ross mar0in 8ross 'rofit turnover !'eratin0 mar0in .et )rofit mar0in )rofit mar,u' )rofit +efore ta: mar0in 4eturn on e<uity 4eturn on ca'ital em'loye$ 4eturn on assets 4eturn on fi:e$ assets Growt5 )atios .et sales !'eratin0 results E&6"2* )rofit after ta: !'eratin0 %or,in0 ca'ital C C C C C 1=0 (A=2A) (43=/4) ((2=11) ( 3=01) 3(=/0 (2 =00) (3(=42) 227= (33=4 )

C C C C C C C C C C

2 = 3A=24 3 =2 (= / 0=42 (=1/ 24=0( 2(=// 4=2 2 =(

3A=04 3(=44 1=12 3(=31 2 =( (=A2 40=40 3(=73 3 =4( 31=7/

&&6

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%00'4

%0044

%00544 4estate$

%006

%00. 4estate$

%008 4estate$

%000

%0&0

/,343,/12 74,(/1 7,A3(,(77 34,3 3,127 1,12(,A ( (, 0(,1A2 34,3 3,127

1,/43,044 12,/03 (,20(,031 3 ,A21,// /,7 1,A7A 7,31A,/14 3 ,A21,//

A,A17, 17 A0,/04 (,1A3,A 0 3(,A/A,A23 A,4/A,71 /,(00,3 1 3(,A/A,A23

33, 1A,2 0 304,07A (,4 /,27( 3/,A2A,(14 A,A0(,72A 7,02 ,1(( 3/,A2A,(14

32, 10,AA7 33A,(73 /,2/ ,10( 31,7/4, 7 A,743,/0 A,022,770 31,7/4, 7

3 ,430,A23 /32,A(4 4,44/,130 31,470,/1( 30,4 (,2(1 1,0 (,427 31,470,/1(

34,434,/42 3,201,337 (,7AA,1A1 23,422,/(7 30,2A7,41A 33,32(,3/1 23,422,/(7

&5(455(445 &(00'(&00 5(48%(0'. %%(0'0(6.% &0(&5%(4&5 &&(8.8(%5. %%(0'0(6.%

37,(72,07( 31,327,2A( 3(,4/2,A21 2,//4, /7 3,017,/13 10/,((2 7//,244

20,1/(,7A1 37,/ A,410 34,11 ,773 2,7((,70A 3, 4/,711 3,330,4(0 3,0(7,1/1

23,0(4,2A1 31,47/,4(7 3(,324,7(A , (3,/A1 3,142,(42 3,/32,403 3,(72,2(7

23,A47,/11 3A,(74,331 3(,4A2,/41 4,013,470 2,47A,031 2,337,7A7 3,4((,/21

2(,A11, (3 2 ,024,32 31,20(, /A 4,131,7(4 2,A14,004 2,7/1,(2 3,714,100

3,A23,17 27,7A1,A3( 22, 0 ,3 1 (,4A(,777 ,0(2, /0 2,132,771 3,1/2,7 1

2, AA,313 21,42A,1A7 22,7(4,00( (,/7(,1A2 ,027,/(4 ,072,(0/ 2,044,7 1

'0(5'%(506 '5(&%0(080 %8(44'(600 6(686(%00 '(.&%(566 '(.'&(5&6 %(4%8(8%6

2,3 A,(/4 3,A ,0/( (30 ,22/) (3,2/3,/2 ) 3,044,021

3,A3/,(0 3,12 ,A27 , 7A,373 (4,(42,4(3) 3,704,/7(

2,///,A00 2,(23,A(A (3,420,7(7) (3,331,223) 3,/17,/(/

,((4,041 ,477,0A (3,040,31 ) (2, 7,021) 3,717,( 1

4, 32,40/ 4,0A ,( 7 (3, A7,4 /) (1/1,(1 ) ,/3(,0(/

3,311, A2 A/A,10A (3,710,A/A) (1 2,13() 3,A73,013

4,A 1, 30 4,47/,2 3 (A 1,04 ) (3,043,031) 4,4/1,2(3

'(.&6(&8. %(''4(4%8 6.5%(8'07 6&('88(0%.7 4(66&(8%%

34=70 3(=3/ /=00 4=2 37=2 4=4( 34=0 37=(0 (=42 3A=/1

3(=/2 3 =23 7=/4 /=00 31=(3 /= 0 3 =3 3(=44 7=(A 2(=03

31=34 3(=A2 A=A7 1=(3 22=3/ 1=7 3/=(/ 31=21 A=1( 2(=31

20=1( 31=/0 32=// 7=44 2/= 4 30=12 34=31 23=(7 1=/0 2A=4/

20=A 31=(4 32=A/ 7=7( 2/=47 32=02 3(=70 2 =17 A=(3 4=A2

3A=77 37=22 30=A1 /=70 24=/4 30=32 34=A/ 23=77 30=01 2=/3

3A=A/ 37=(2 30=/( 7=3A 24=A4 30=13 3(=37 3A= 1 A=(4 2=12

&030' &630& &035. 630& %'35& &036% &63.0 %%34' &&30% 4030&

41= ( 0=A1 3=/3 ((1=/A) ( =3/

(2=/A) 2 =12 3/=10 1=0/ (304=/7)

4=74 /=13 2(= 4 41=/ ( 24=A()

(=A4 4=(4 2(=A( (7=42) (3AA=12)

37=/ 20= 7 20=(1 22=/3 (331=1/)

20=74 2=2A > 4= 7 231=30

2=27 (0=13) 3=04 A=77 (12=3A)

%'35. %%36% &0345 &83.8 '%0364

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&&.

Co parison of )esults for 2en Lears

*s at 2ecem+er 3

%00& *fficiency )atios *sset turnover #i:e$ asset turnover 6nventory turnover Current asset turnover Ca'ital em'loye$ turnover !'eratin0 %or,in0 ca'ital turnover 2e+tor turnover ratio Cre$itor turnover ratio 6nventory turnover ratio !'eratin0 cycle 4evenue 'er em'loyee .et income 'er em'loyee Ca'e: to sales Cost )atios !'eratin0 costs (C of sales) *$ministration costs (C of sales) Sellin0 costs (C of sales) 6nterest cost (C of sales) DDD *+uity )atios )rice earnin0s ratio Earnin0s 'er share 2ivi$en$ 'er share 2ivi$en$ cover 2ivi$en$ (2eclare$ for the year) Miel$ 2ivi$en$ (2eclare$ for the year) )ayout Mar,et value 'er share &rea,>u' value 'er share %ith sur'lus on revaluation &rea,>u' value 'er share e:clu$in0 sur'lus on revaluation ?i+uidity )atios Current ratio Uuic, / *ci$ test ratio Cash ratio ?everage )atios 2e+t to e<uity "otal $e+t to ca'ital ratio 6nterest cover DDD

%00%

"imes "imes "imes "imes "imes "imes 2ays 2ays 2ays 2ays 4s?000 4s?000 C

0=7A 3=71 =3/ 2=24 2= ( 3/=74 37=// (1=0 304=43 /4=0 7,4 1 AA 1=03

0=1A 2=3 4=34 2=/( 2=20 23=1( 3A=07 7A=(1 A3= 7 0=1/ A,2/4 340/ 4=0A

C C C C

1/=77 4=34 (=A( (=AA

A3=31 4=20 /=0 =44

4s 4s 4s "imes C C 4s 4s 4s

1=2( 4=21 2=00 2=34 (=/7 41=AA (= 0 40=/4 37=71

4=04 3 = / 2=2( (=A4 4=37 3/=14 ( =A( 41=13 =01

4atio 4atio 4atio

0=(AG3 0=27G3 0=0/G3

0=/7G3 0= 2G3 0=07G3

C 4atio "imes

2(=4 44G(/ 3=A1

7=44 G/7 2=72

D E:clu$in0 turnover of $iscontinue$ furnace oil an$ coal +usinesses= *lso e:clu$in0 oneoff 'rofit on sale of ))"* shares in 2004= DD E:clu$in0 reco0nition of $eferre$ ta: cre$it in 200( DDD 6nterest cover an$ 6nterest cost (C of Sales) is -ero in 200A an$ 2030 $ue to net interest income "he com'aratives (2002 to 2004) have not +een restate$ $ue to chan0e in accountin0 'olicy on a$o'tion of 6#46C 4=
&&8 *nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%00'4

%0044

%00544 4estate$

%006

%00. 4estate$

%008 4estate$

%000

%0&0

3=21 =21 (=7 =42 2=1 23=3/ 3 =2( (/= ( /0=0/ 3/=A/ 3 ,(/1 (74 2=(

3=27 =21 4=3/ 2=4( 2= A (440=/2) 3(=0A 7(=/2 7/=A4 3/=43 3 ,4 4 10/ =32

3=3/ 2=(2 4=7 2=14 2=0A (301=/3) 34=44 71=70 13=77 37=(2 34,3 7 3,20 7=77

3=3/ 2= (=07 2=7A 3=A3 ( 1= 1) 32=14 7(=A0 7 =/7 30=/2 3(, 04 3,3 1 (=(

3=2 2=/A /=24 2=(( 2=01 (20=/2) 3 =/( 71=24 (A=1( (4=74) 37,A4/ 3, A3 4=/(

3=(3 2=A7 /= A =4/ 2=21 23=0A 33=13 (0=(2 (2=4 3 =72 23,044 3,430 (=4(

3= =01 /=01 2=(/ 2=07 323=0/ 33=01 43=00 (1=00 21=01 23,1(2 3,(72 2=A3

&350 '38. 63.& %306 %3'0 '5356 8300 40306 5&3&0 %030' %6(8.8 &(858 %34'

A4=00 =2/ (=4 2=33

A2= / =77 4=22 3=44

A0=0 =7( 4=43 3=(0

17= 4 =73 4=41 3=4(

17=04 = 0 4=/7 0=44

1A=02 4=0( 4=74 0= 2

1A= ( 4=34 (=37 >

8034' '3.0 43.. B

3(=40 (=(2 2=(0 2=23 2=A4 4(=2A 1(=00 44=2( A= (

33=7/ 7=/2 4=00 3=A3 4=4/ (2=41 1A=/( /2=2( (1=02

32=40 33= (=00 2=27 =(/ 44=34 340=(0 73=A( /1= A

33=03 30=4A (=(0 3=A3 4=7/ (2=4( 33(=(0 12=0( 7 =A(

3(=2A 32=1/ /=00 2=34 =0( 4/=// 3A/=/( 1A=20 13=A3

(=32 3 =42 /=(0 2=0/ A=4/ 41=4 /1=73 A/=/2 1A=/1

33=44 34=7 1=00 3=14 4=7( (4= 3 3/1=4A 30 =1( A7=34

83%4 &.350 &.350 &300 &%3&' &0030& &443%4 &&&3'5 &0438&

0=/7G3 0= G3 0=3 G3

3= 1G3 0=/AG3 0= G3

3=30G3 0=(/G3 0=2AG3

3=2AG3 0=7 G3 0= G3

3=44G3 0=A7G3 0=(1G3

3=13G3 3=02G3 0=44G3

3=A2G3 3=27G3 0=77G3

%3&.;& &3'0;& 0385;&

> 40G/0 =33

3= A 3GAA (= /

> 0G300 /=12

0=04 0G300 1=44

> 0G300 21=42

> 0G300 2=2A

> 0G300 >

> 0;&00 >

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&&0

Pattern of #5are5olding
as at 2ecem+er 3, 2030

$o3 of #5are5olders =ro /,03A 3

Categories 2o 300

$o3 of #5ares

230,/10 A(3,27( 127,1A0 2,(1A,331 3,3/7,(14 70/, 34 /43,3(4 4/2,320 4(2,/3/ 317,A( 2/0,(30 20A,7// 2,/A 2/(,230 2A0,( 2 322,214 /1,(7A (32,4A7 7(,700 3/7,000 1A,212 A2,303 300,000 304,1 0 224,/ 4 33/,/00 00,000 3(0,237 7,100 (0,000 37A,17 3A3,(00

,A(2 3,30 3,3A4 3(7 (7 / 20 3/ / 7 ( 7 ( ( 2 3 7 3 2 3 3 3 3 2 3 2 3 2 2 3 3

303 (03 3,003 (,003 30,003 3(,003 20,003 2(,003 0,003 (,003 40,003 4(,003 (0,003 ((,003 /0,003 /(,003 70,003 7(,003 10,003 1(,003 A0,003 A(,003 300,003 330,003 33(,003 34(,003 3(0,003 3/(,003 370,003 37(,003 3A0,003

(00 3,000 (,000 30,000 3(,000 20,000 2(,000 0,000 (,000 40,000 4(,000 (0,000 ((,000 /0,000 /(,000 70,000 7(,000 10,000 1(,000 A0,000 A(,000 300,000 30(,000 33(,000 320,000 3(0,000 3((,000 370,000 37(,000 310,000 3A(,000

&%0

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

$o3 of #5are5olders =ro

Categories 2o

$o3 of #5ares

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 &%(640

3A(,003 220,003 270,003 2A0,003 2A(,003 30,003 0,003 (,003 4(,003 ((,003 1(,003 A(,003 430,003 43(,003 440,003 44(,003 (0(,003 ( 0,003 (70,003 (A(,003 /0(,003 /((,003 77(,003 170,003 A0(,003 3,0A(,003 3,400,003 3,(7(,003 3,A70,003 ,2/0,003 30(,22(,003

200,000 22(,000 27(,000 2A(,000 00,000 3(,000 (,000 40,000 (0,000 /0,000 A0,000 400,000 43(,000 420,000 44(,000 4(0,000 (30,000 ( (,000 (7(,000 /00,000 /30,000 //0,000 710,000 17(,000 A30,000 3,300,000 3,40(,000 3,(10,000 3,A7(,000 ,2/(,000 30(,2 0,000

200,000 22(,000 270,A7A 2A4,74A 00,000 3 ,221 3,AA0 (,A3( 47,000 (1, 00 1/,2 7 400,000 432,( 2 431,000 44 ,234 4(0,000 (0(,41A ( ,100

(74,2 3 /00,000 /30,000 /((,33( 77(,01 172,7(0 A0A,A00 3,300,000 3,403,733 3,(7A,044 3,A70, 74 ,2/0,222 30(,22A,32(
&'8(80%('00

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&%&

Pattern of #5are5olding
as at 2ecem+er 3, 2030

#3$o3 Categories of #5are5olders 3 2 *ssociate$ Com'anies (a) 6nvestment Com'anies 6nsurance Com'anies 4 ( / 7 1 A 30 Loint Stoc, Com'anies !thers #inancial 6nstitutions Mo$ara+a Com'anies Mutual #un$s 6n$ivi$uals Central 2e'ository Com'any (+) 2,2A?

$o3 of #5are5olders 3 32 7 2( 2( 32

#5ares Feld 30(,22A,32( (,711 2,/A4 A,322 34,042 31,4( 37/

Percentage 7(=13 0=00 0=00 0=03 0=2 0=03 0=00 0=00 3=77 22=3/ &00300

/ 1, 07 4,2(3 &%(640

7/4 2,4/2,(77 0,7(A,((A &'8(80%('00

(a) 4e'resents the 7(=13C sharehol$in0 of 6C6 !micron, &=V= a su+i$iary of *,-o.o+el .=V= (+) Cate0ories of *ccount Hol$ers an$ Su+ *ccount Hol$ers as 'er Central 2e'ository 4e0ister=

3 2

6nsurance Com'anies 6nvestment Com'anies Loint Stoc, Com'anies

3( 4 A7 2 ( (0 A 20 3 / 4,032 4(%5&

(,/7A,(11 (A,37A 17 ,(12 (,003 1A, 2( 33,4(1, (3 3,000,0(3 (,/ 3,0A( 2,200 1(,7 3 (,17(,4(/ '0(.50(550

31=4/ 0=3A 2=14 0=02 0=2A 7=2( =2( 31= 3 0=03 0=21 3A=30 &00300

4 ( / 7 1 A 30 33

Mo$ara+a Mana0ement Com'anies Mo$ara+as Mutual #un$ !thers #inancial 6nstitutions Coo'erative Societies Charita+le "rusts 6n$ivi$uals 2,2A?

&%%

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

Pattern of #5are5olding (In$er clause (i) of su+>re0ulation (W6W) of 4e0ulation ( of cha'ter (W6) of the 5istin0 4e0ulations of the @arachi Stoc, E:chan0e (8uarantee) 5t$=
*s at 2ecem+er 3, 2030
ADD"2",$A? "$=,):A2",$ #5are5olders Category $u /er of #5are5olders J folios 3 $u /er of #5ares Feld

Associated Co panies( Gnderta-ings and )elated Parties 6C6 !M6C4!. &=V= $"2 and "CP 6na e wise detail7 .ational &an, of )a,istan,"rustee 2e'tt= .6(I)" #un$ Directors( C*, and t5eir spouse and Mahome$ L= Laffer Mr= ;a<ar * Mali, Mr= M .a%a- "i%ana Mr= #ero- 4i-vi Mr= Mueen *f-al Mr= *li * *0a Ms= @hatoon M= Laffer %/o M L Laffer Mr= *,+ar Laffer s/o M L Laffer *!ecutives Pu/lic #ector Co panies and Corporations 1an-s( Develop ent =inance "nstitutions( $onB1an-ing =inance "nstitutions "nsurance Co panies( :odara/as and :utual =unds #5are5olders 5olding &0D or 6C6 !M6C4!. &=V= ore voting interest inor c5ildren 6na e wise detail7

30(,22A,32(

3,(7A,044

3 3 3 2 3 3 3 3 42 4 331

23, 2( 3 3 3(,003 3 3 3(,A1A 3(,013 32,334 ,2/2,214 37,0/ ,04(

30(,22A,32(

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&%'

"C" Pa-istan ?i ited and its #u/sidiary Co pany

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&%5

)eport of t5e Directors

for the year en$e$ 2ecem+er 3, 2030

"he 2irectors are 'lease$ to 'resent their re'ort to0ether %ith the au$ite$ 8rou' results of 6C6 )a,istan 5imite$ for the year en$e$ 2ecem+er 3, 2030= "he 6C6 )a,istan 8rou' com'rises of 6C6 )a,istan 5imite$ an$ 6C6 )a,istan )o%er8en 5imite$, a %holly o%ne$ su+si$iary= "he 2irectors re'ort, 0ivin0 a commentary on the 'erformance of 6C6 )a,istan 5imite$ for the year en$e$ 2ecem+er 3, 2030 has +een 'resente$ se'arately= 2urin0 the year, cru$e oil 'rices remaine$ a+ove the 'rice levels of 200A= 6n 2030, cru$e oil 'rices at 4s 4 ,/(0/tonne %as on an avera0e hi0her +y A 'ercent com'are$ %ith 4s 3,4( /tonne in 200A= 8as tariff %as increase$ in early U3 2030, ho%ever, it remaine$ fairly sta+le there on%ar$s= Electricity sales volume for the year %as / 'ercent hi0her com'are$ to 200A= "his %as $ue to hi0her $eman$ from the )olyester 'lant of 6C6 )a,istan 5imite$= "his alon0 %ith revision in electricity tariff at the +e0innin0 of the year ena+le$ the Com'any to achieve an o'eratin0 result of 4s 323= million %hich %as 7 'ercent hi0her com'are$ to last year=

=uture ,utlooCru$e oil 'rices an$ furnace oil 'rices are e:'ecte$ to increase %ith the %orsenin0 of 'olitical unrest in Mi$$le East=

M L Laffer Chairman #e+ruary 3/, 2033 @arachi

;a<ar * Mali, Chief E:ecutive

&%6

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

Auditors )eport to t5e :e /ers

;e have au$ite$ the anne:e$ consoli$ate$ financial statements of 6C6 )a,istan 5imite$ an$ its su+si$iary (the J8rou'K) com'risin0 consoli$ate$ +alance sheet as at 3 2ecem+er 2030 an$ the relate$ consoli$ate$ 'rofit an$ loss account, consoli$ate$ statement of com'rehensive income, consoli$ate$ cash flo% statement an$ consoli$ate$ statement of chan0es in e<uity to0ether %ith the notes formin0 'art thereof, for the year then en$e$= "hese financial statements are the res'onsi+ility of the Hol$in0 Com'anyFs mana0ement= !ur res'onsi+ility is to e:'ress an o'inion on these financial statements +ase$ on our au$it= ;e con$ucte$ our au$it in accor$ance %ith the au$itin0 stan$ar$s as a''lica+le in )a,istan= "hese stan$ar$s re<uire that %e 'lan an$ 'erform the au$it to o+tain reasona+le assurance a+out %hether the a+ove sai$ statements are free of any material misstatement= *n au$it inclu$es e:aminin0, on a test +asis, evi$ence su''ortin0 the amounts an$ $isclosures in the a+ove sai$ statements= *n au$it also inclu$es assessin0 the accountin0 'olicies an$ si0nificant estimates ma$e +y mana0ement, as %ell as, evaluatin0 the overall 'resentation of the a+ove sai$ statements= ;e +elieve that our au$it 'rovi$es a reasona+le +asis for our o'inion= 6n our o'inion, the consoli$ate$ financial statements 'resent fairly the consoli$ate$ financial 'osition of the 8rou' as at 3 2ecem+er 2030, an$ the consoli$ate$ results of its o'erations, consoli$ate$ cash flo%s an$ consoli$ate$ chan0es in e<uity for the year then en$e$ in accor$ance %ith a''rove$ accountin0 stan$ar$s as a''lica+le in )a,istan=

#e+ruary 3/, 2033 @arachi

@)M8 "aseer Ha$i & Co= Chartere$ *ccountants *mir Lamil *++asi

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&%.

Consolidated 1alance #5eet

*s at 2ecem+er 3, 2030

*mounts in 4s F000

.ote *KG"2L A$D ?"A1"?"2"*# #5are Capital and )eserves *uthorise$ ca'ital 3,(00,000,000 or$inary shares of 4s 30 each 6ssue$, su+scri+e$ an$ 'ai$>u' ca'ital Ca'ital reserves Ina''ro'riate$ 'rofit 2otal *+uity #urplus on )evaluation of Property( Plant and *+uip ent ?"A1"?"2"*# $onBCurrent ?ia/ilities )rovisions for non>mana0ement staff 0ratuity an$ eli0i+le retire$ em'loyees? me$ical scheme 2eferre$ ta: lia+ility > net 7 1 / 4 (

%0&0

200A

&5(000(000 &('88(0%' 465(845 &%(%.0(40& &4(&''(%60 0&.('80

3(,000,000 3, 11,02 4/(,14( 33,3/ ,(77 3 ,037,44( A44,324

%%'(&8& 8.0(%48 &(00'(4%0

31 ,2(1 3,02(,0A1 3,201, (/

Current ?ia/ilities Short>term financin0 "ra$e an$ other 'aya+les A 30 B 5(566(6%& 5(566(6%& Contingencies and Co it ents 33 %&(.&0(600 23,07A,4( /,0 1 (,17 ,4A0 (,A0A,(21

2otal *+uity and ?ia/ilities

&%8

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

.ote A##*2# $onBCurrent Assets )ro'erty, 'lant an$ e<ui'ment 6ntan0i+le assets 32 3

%0&0

200A

0(5&0('00 &80(&0' 0(600(40'

A,1/2,170 > A,1/2,170 2,(00 3 3,4 0 2A,071 3/ ,001 30,02(,171

5on0>term investment 5on0>term loans 5on0>term $e'osits an$ 're'ayments

34 3( 3/

%(500 &48(%65 40(458 &0&(%%' 0(88&(6%6

Current Assets Stores an$ s'ares Stoc,>in>tra$e "ra$e $e+ts 5oans an$ a$vances "ra$e $e'osits an$ short>term 're'ayments !ther receiva+les "a:ation recovera+le Cash an$ +an, +alances 2 37 31 3A 20 23 22 5&8(0.8 '(8&6(680 8&8('5& %86(655 455(%'% 64.(660 545(05& 4(.'0(55. &&(8%0(0.' ((4,(13 ,2( , 4( A44,17A 324,A40 4(4,4 73 ,444 4/0,240 4,(47,73 33,0( ,(7(

2otal Assets

%&(.&0(600

23,07A,4(

"he anne:e$ notes 3 to 47 form an inte0ral 'art of these consoli$ate$ financial statements=

: E Eaffer

Chairman / 2irector

@a+ar A :ali-

Chief E:ecutive
"C" Pa-istan ?i ited

Chief #inancial !fficer

*nnual 4e'ort 2030 &%0

=ero> )i>vi

Consolidated Profit and ?oss Account

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

.ote "urnover Sales ta:, e:cise $uty, commission an$ $iscounts .et sales, commission an$ toll income Cost of sales 8ross 'rofit Sellin0 an$ $istri+ution e:'enses *$ministration an$ 0eneral e:'enses !'eratin0 result #inancial char0es !ther o'eratin0 char0es 2A 0 27 21 2( 2( 24

%0&0 '0(5'%(506 64(5'8(0&.7 '4(004(480 6%8(&8%(&407 6(8&%('40 6&(6.4(.&07 6&('0&(..57 '(8'5(846 6&65(4&67 6'0.(%4'7 64.%(6507

200A 2, AA,313 (4,0/2,(2/) 21, /,/((

(22,(/A,/72) (,7//,A1 (3,470,374) (3,371, 70) ,331,4 A (31(,742) (241,4 /) (4 4,371) A7,1 7 ,012,0A1 (3,027,7/1) 2,0(4, 0

!ther o'eratin0 income )rofit +efore ta:ation "a:ation )rofit after ta:ation

4&6(606 '(..0(.0'

6&('0%(6007 %(4..(&0' 6)upees7

(4u'ees) 34=10

*arnings per s5are B 1asic and diluted "he anne:e$ notes 3 to 47 form an inte0ral 'art of these consoli$ate$ financial statements=

&.385

: E Eaffer

Chairman / 2irector
&'0 *nnual 4e'ort 2030 "C" Pa-istan ?i ited

@a+ar A :ali-

Chief E:ecutive

Chief #inancial !fficer

=ero> )i>vi

Consolidated #tate ent of Co pre5ensive "nco e

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 Profit for t5e year ,t5er co pre5ensive inco e 2otal Co pre5ensive inco e for t5e year %(4..(&0' > %(4..(&0'

200A 2,0(4, 0 > 2,0(4, 0

"he anne:e$ notes 3 to 47 form an inte0ral 'art of these consoli$ate$ financial statements=

: E Eaffer

Chairman / 2irector

@a+ar A :ali-

Chief E:ecutive
"C" Pa-istan ?i ited

Chief #inancial !fficer

*nnual 4e'ort 2030 &'&

=ero> )i>vi

Consolidated Cas5 =low #tate ent

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 Cas5 =lows fro ,perating Activities '(..0(.0'

200A

)rofit +efore ta:ation *$9ustments forG 2e'reciation an$ amortisation 8ain on $is'osal of 'ro'erty, 'lant an$ e<ui'ment )rovision for non>mana0ement staff 0ratuity an$ eli0i+le retire$ em'loyees? me$ical scheme Mar,>u' on +an, $e'osits 6nterest / mar,>u' e:'ense

,012,0A1

&(0%.(400 6&0(%&&7 58(00& 6%8%(0067 &0'(4%4 4(6.6(500

A(7, 0A ((,2A ) (/,001 (3/7,AA() 30/,4A/ 4,021,/2

Movement inG ;or,in0 ca'ital 5on0>term loans 5on0>term $e'osits an$ 're'ayments Cash 0enerate$ from o'erations )ayments for G .on>mana0ement staff 0ratuity an$ eli0i+le retire$ em'loyees? me$ical scheme "a:ation 6nterest / mar,>u' )rofit / mar,>u' receive$ on +an, $e'osits .et cash 0enerate$ from o'eratin0 activities Cas5 =lows fro "nvesting Activities 60&5(8'47 ''(0'% 688%(80%7 (1 A,3(/) 37,341 (122,001) 6&0(0687 6&(54'(%5&7 6&04('507 %8%(448 %(408(.&& (3(,2 A) ((34,1 1) (33A, A() 3/ ,A 7 4,/ 0,11( 6.65(44'7 6&6(8'57 6&&('807 '(88%(0'% 3,01/, 07 (33/) 3,/0/ (,33/,420

)ayments for ca'ital e:'en$iture )rocee$s from $is'osal of 'ro'erty, 'lant an$ e<ui'ment .et cash use$ in investin0 activities

&'%

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 Cas5 =lows fro 2ivi$en$ 'ai$ .et cash use$ in financin0 activities .et increase in cash an$ cash e<uivalents Cas5 and cas5 e+uivalents at Eanuary & Cas5 and cas5 e+uivalents at Dece /er '& B note %' =inancing Activities 6&('88(0%.7 6&('88(0%.7 %%.(88% 4(5&&(6.5 4(.'0(55.

200A

(3,043,031) (3,043,031) 2,7/7,1(A 3,74 ,13/ 4,(33,/7(

:ove ent in @or-ing Capital 6"ncrease7 J Decrease in current assets Stores an$ s'ares Stoc,>in>tra$e "ra$e $e+ts 5oans an$ a$vances "ra$e $e'osits an$ short>term 're'ayments !ther receiva+les '5(60' 656'(''57 &%6(5%8 6&6&(.&57 6.007 66(%'' 640.(4857 6Decrease7 J "ncrease in current lia/ilities "ra$e an$ other 'aya+les 6%6.(0587 6.65(44'7 Cas5 and cas5 e+uivalents at Dece /er '& co prise of; Cash an$ +an, +alances > note 2 4unnin0 finances utilise$ un$er mar,>u' arran0ements > note A 4(.'0(55. > 4(.'0(55. "he anne:e$ notes 3 to 47 form an inte0ral 'art of these consoli$ate$ financial statements= 4,(47,73 ( /,0 1) 4,(33,/7( 3,4(4,21A 3,01/, 07 2/,1A2 (217,/4/) (332,137) (2/,(70) (41,434) 10,(7 ( /7,A12)

: E Eaffer

Chairman / 2irector

@a+ar A :ali-

Chief E:ecutive
"C" Pa-istan ?i ited

Chief #inancial !fficer

*nnual 4e'ort 2030 &''

=ero> )i>vi

Consolidated #tate ent of C5anges in *+uity

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

"ssued( su/scri/ed and paidBup capital 1alance as on Eanuary &( %000 #inal $ivi$en$ for the year en$e$ 2ecem+er 3, 2001 O 4s 4=00 'er share 6nterim $ivi$en$ for the year 200A O 4s =(0 'er share 2ransactions wit5 owners( recorded directly in e+uity "otal com'rehensive income for the year en$e$ 2ecem+er 3, 200A "ransfer from sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment incremental $e'reciation for the 'erio$ > net of $eferre$ ta: > note / &('88(0%' > > > >

Capital reserves

Gnappropriated profit

2otal

465(845 > > > >

&0(&&.(065 ((((,20A) (41(,101) (3,043,037) 2,0(4, 0

&&(0.0(0'' ((((,20A) (41(,101) (3,043,037) 2,0(4, 0

> >

> > 465(845

,3AA 2,017,(2A &&(&6'(5..

,3AA 2,017,(2A &'(0&.(445

1alance as on Dece /er '&( %000

&('88(0%'

#inal $ivi$en$ for the year en$e$ 2ecem+er 3, 200A O 4s 4=(0 'er share 6nterim $ivi$en$ for the year 2030 O 4s (=(0 'er share 2ransactions wit5 owners( recorded directly in e+uity "otal com'rehensive income for the year en$e$ 2ecem+er 3, 2030 "ransfer from sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment incremental $e'reciation for the 'erio$ > net of $eferre$ ta: > note /

> > > >

> > > >

(/24,/30) (7/ ,43 ) (3, 11,02 ) 2,477,30

(/24,/30) (7/ ,43 ) (3, 11,02 ) 2,477,30

> >

> > 465(845

2/,744 2,(0 ,147 &%(%.0(40&

2/,744 2,(0 ,147 &4(&''(%60

1alance as on Dece /er '&( %0&0

&('88(0%'

"he anne:e$ notes 3 to 47 form an inte0ral 'art of these consoli$ate$ financial statements=

: E Eaffer

Chairman / 2irector
&'4 *nnual 4e'ort 2030 "C" Pa-istan ?i ited

@a+ar A :ali-

Chief E:ecutive

Chief #inancial !fficer

=ero> )i>vi

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

&3

#tatus and $ature of 1usiness "he 8rou' consists ofG

n n

6C6 )a,istan 5imite$S an$ 6C6 )a,istan )o%er8en 5imite$=

6C6 )a,istan 5imite$ (Jthe Com'anyK) is incor'orate$ in )a,istan an$ is liste$ on the @arachi, 5ahore an$ 6slama+a$ Stoc, E:chan0es= 6C6 )a,istan )o%er8en 5imite$ (Jthe Su+si$iaryK) is incor'orate$ in )a,istan as an unliste$ 'u+lic com'any an$ is a %holly o%ne$ su+si$iary com'any of 6C6 )a,istan 5imite$= "he Com'any is en0a0e$ in the manufacture of 'olyester sta'le fi+re, )!M chi's, so$a ash, 'aints, s'ecialty chemicals, so$ium +icar+onate, 'olyurethanesS mar,etin0 of see$s, toll manufacture$ an$ im'orte$ 'harmaceuticals an$ animal health 'ro$uctsS an$ merchantin0 of 0eneral chemicals= 6t also acts as an in$entin0 a0ent an$ toll manufacturer= "he Su+si$iary is en0a0e$ in 0eneratin0, sellin0 an$ su''lyin0 electricity to the Com'any= "he 8rou'?s re0istere$ office is situate$ at ( ;est ;harf, @arachi= %3 %3& 1asis of preparation #tate ent of co pliance "hese consoli$ate$ financial statements have +een 're'are$ in accor$ance %ith a''rove$ accountin0 stan$ar$s as a''lica+le in )a,istan= *''rove$ accountin0 stan$ar$s com'rise of such 6nternational #inancial 4e'ortin0 Stan$ar$s (6#4S) issue$ +y the 6nternational *ccountin0 Stan$ar$ &oar$ as are notifie$ un$er the Com'anies !r$inance, 3A14, 'rovisions of an$ $irectives issue$ un$er the Com'anies !r$inance, 3A14= 6n case re<uirements $iffer, the 'rovisions of, or $irectives issue$ un$er the Com'anies !r$inance, 3A14 shall 'revail= %3% 1asis of easure ent

"hese consoli$ate$ financial statements have +een 're'are$ un$er the historical cost convention, e:ce't that certain 'ro'erty, 'lant an$ e<ui'ment have +een inclu$e$ at revalue$ amounts an$ certain e:chan0e elements referre$ to in note =7 have +een reco0nise$ in the cost of the relevant 'ro'erty, 'lant & e<ui'ment= "he 're'aration of financial statements in conformity %ith a''rove$ accountin0 stan$ar$s re<uires mana0ement to ma,e estimates, assum'tions an$ use 9u$0ments that affect the a''lication of 'olicies an$ re'orte$ amounts of assets an$ lia+ilities an$ income an$ e:'enses= Estimates, assum'tions an$ 9u$0ments are continually evaluate$ an$ are +ase$ on historical e:'erience an$ other factors, inclu$in0 reasona+le e:'ectations of future events= 4evisions to accountin0 estimates are reco0nise$ 'ros'ectively commencin0 from the 'erio$ of revision= Lu$0ments an$ estimates ma$e +y the mana0ement that may have a si0nificant ris, of material a$9ustments to the financial statements in su+se<uent years are $iscusse$ in note 4 = '3 #u ary of #ignificant Accounting Policies

"he accountin0 'olicies a$o'te$ are the same as those %hich %ere a''lie$ for the 'revious financial year= '3& Consolidation "he financial statements of the Su+si$iary have +een consoli$ate$ on a line>+y>line +asis an$ all intra>0rou' +alances an$ transactions have +een eliminate$= '3% #taff retire ent /enefits "he 8rou'?s retirement +enefit 'lans com'rise of 'rovi$ent fun$s, 'ensions, 0ratuity schemes an$ a me$ical scheme for eli0i+le retire$ em'loyees= Defined /enefit plans "he 8rou' o'erates a fun$e$ 'ension scheme an$ a fun$e$ 0ratuity scheme for mana0ement staff= "he 'ension an$ 0ratuity schemes are salary schemes 'rovi$in0 'ension an$ lum' sums, res'ectively= )ension an$ 0ratuity schemes for mana0ement staff are investe$ throu0h t%o a''rove$ trust fun$s= "he 8rou' also o'erates 0ratuity scheme for non>mana0ement staff an$ the
"C" Pa-istan ?i ited *nnual 4e'ort 2030 &'5

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

'ensioners? me$ical scheme %hich are unfun$e$= "he 'ension an$ 0ratuity 'lans are final salary 'lans= "he 'ensioner?s me$ical 'lan reim+urses actual me$ical e:'enses to 'ensioners as 'er entitlement= "he 8rou' reco0nises e:'ense in accor$ance %ith 6*S 3A JEm'loyee &enefitsK= *n actuarial valuation of all $efine$ +enefit schemes is con$ucte$ every year= "he valuation uses the )ro9ecte$ Init Cre$it metho$= *ctuarial 0ains an$ losses are amortise$ over the e:'ecte$ avera0e remainin0 %or,in0 lives of em'loyees as allo%e$ un$er the relevant 'rovision of 6*S 3A JEm'loyee &enefitsK= )ast>service costs are reco0nise$ imme$iately in 'rofit an$ loss account, unless the chan0es to the 'lan are con$itional on the em'loyees remainin0 in service for a s'ecifie$ 'erio$ of time (the vestin0 'erio$)= 6n this case, the 'ast>service costs are amortise$ on a strai0ht>line +asis over the vestin0 'erio$= Defined contri/ution plans "he 8rou' o'erates t%o re0istere$ contri+utory 'rovi$ent fun$s for its entire staff an$ a re0istere$ $efine$ contri+ution su'erannuation fun$ for its mana0ement staff, %ho have either o'te$ for this fun$ +y Luly 3, 2004 or have 9oine$ the 8rou' after *'ril 0, 2004= 6n a$$ition to this the 8rou' also 'rovi$es 0rou' insurance to all its em'loyees= '3' Provisions * 'rovision is reco0nise$ in the +alance sheet %hen the 8rou' has a le0al or constructive o+li0ation as a result of a 'ast event, an$ it is 'ro+a+le that an outflo% of economic +enefits %ill +e re<uire$ to settle the o+li0ation an$ a relia+le estimate can +e ma$e of the amount of o+li0ation= "he amount reco0nise$ as a 'rovision reflects the +est estimate of the e:'en$iture re<uire$ to settle the 'resent o+li0ation at the en$ of the re'ortin0 'erio$= '34 2rade and ot5er paya/les "ra$e an$ other 'aya+les are reco0nise$ initially at fair value 'lus $irectly attri+uta+le cost, if any= '35 Dividend 2ivi$en$ $istri+ution to the 8rou'?s sharehol$ers is reco0nise$ as a lia+ility in the 'erio$ in %hich the $ivi$en$s are a''rove$= '36 2a!ation 6ncome ta: e:'ense com'rises current an$ $eferre$ ta:= 6ncome ta: e:'ense is reco0nise$ in the 'rofit an$ loss account, e:ce't to the e:tent that it relates to items reco0nise$ $irectly in other com'rehensive income or +elo% e<uity, in %hich case it is reco0nise$ in other com'rehensive income or +elo% e<uity res'ectively= Current )rovision for current ta:ation is +ase$ on ta:a+le income at the enacte$ or su+stantively enacte$ rates of ta:ation after ta,in0 into account availa+le ta: cre$its an$ re+ates, if any= "he char0e for current ta: inclu$es a$9ustments to char0e for 'rior years, if any= Deferred 2eferre$ ta: is reco0nise$ usin0 +alance sheet metho$, 'rovi$in0 for tem'orary $ifferences +et%een the carryin0 amounts of assets an$ lia+ilities for financial re'ortin0 'ur'oses an$ the amounts use$ for ta:ation 'ur'oses= "he amount of $eferre$ ta: 'rovi$e$ is +ase$ on the e:'ecte$ manner of realisation or settlement of the carryin0 amount of assets an$ lia+ilities, usin0 the enacte$ or su+stantively enacte$ rates of ta:ation= "he 8rou' reco0nises a $eferre$ ta: asset to the e:tent that it is 'ro+a+le that ta:a+le 'rofits for the foreseea+le future %ill +e availa+le a0ainst %hich the asset can +e utilise$= 2eferre$ ta: assets are re$uce$ to the e:tent that it is no lon0er 'ro+a+le that the relate$ ta: +enefit %ill +e realise$= #urther, the 8rou' reco0nises $eferre$ ta: asset / lia+ility on $eficit / sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment %hich is a$9uste$ a0ainst the relate$ $eficit / sur'lus= '3. Property( plant and e+uip ent and depreciation )ro'erty, 'lant an$ e<ui'ment (e:ce't freehol$ lan$, leasehol$ lan$ an$ 'lant & machinery) are state$ at cost less accumulate$ $e'reciation an$ im'airment losses= #reehol$ lan$, leasehol$ lan$ an$ 'lant & machinery are state$ at revalue$ amounts less accumulate$ $e'reciation= Ca'ital %or,>in>'ro0ress is state$ at cost= Cost of certain 'ro'erty, 'lant an$ e<ui'ment com'rises historical cost, e:chan0e $ifferences reco0nise$ in accor$ance %ith the 'revious #ourth Sche$ule to the !r$inance, cost of e:chan0e ris, cover in res'ect of forei0n currency loans o+taine$ for the ac<uisition of 'ro'erty, 'lant an$ e<ui'ment u'to the commencement of commercial 'ro$uction an$ the cost of +orro%in0s $urin0 construction 'erio$ in res'ect of loans ta,en for s'ecific 'ro9ects= 2e'reciation char0e is +ase$ on the strai0ht>line metho$ %here+y the cost or revalue$ amount of an asset is %ritten off to 'rofit an$ loss account over its estimate$ useful life after ta,in0 into account resi$ual value, if material= "he cost of leasehol$ lan$ is
&'6 *nnual 4e'ort 2030 "C" Pa-istan ?i ited

amortise$ in e<ual installments over the lease 'erio$= 2e'reciation on a$$itions is char0e$ from the month in %hich the asset is availa+le for use an$ on $is'osals u' to the month of $is'osal= "he resi$ual value, $e'reciation metho$ an$ the useful lives of each 'art of 'ro'erty, 'lant an$ e<ui'ment that is si0nificant in relation to the total cost of the asset are revie%e$, an$ a$9uste$ if a''ro'riate, at each +alance sheet $ate= Sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment is cre$ite$ to the sur'lus on revaluation account= "o the e:tent of the incremental $e'reciation char0e$ on the revalue$ assets the relate$ sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment (net of $eferre$ ta:ation) is transferre$ $irectly to una''ro'riate$ 'rofit= Maintenance an$ normal re'airs are char0e$ to income as an$ %hen incurre$= 6m'rovements are ca'italise$ %hen it is 'ro+a+le that res'ective future economic +enefits %ill flo% to the 8rou' an$ the cost of the item can +e measure$ relia+ly= *ssets re'lace$, if any, are $ereco0nise$= 8ains an$ losses on $is'osal of assets are ta,en to the 'rofit an$ loss account, an$ the relate$ sur'lus on revaluation of 'ro'erty, 'lant an$ e<ui'ment is transferre$ $irectly to retaine$ earnin0s (una''ro'riate$ 'rofits)= '38 "ntangi/le asset and a ortisation 6ntan0i+le assets %ith a finite useful life, such as certain soft%ares, licenses an$ 'ro'erty ri0hts, are ca'italise$ initially at cost an$ su+se<uently state$ at cost less accumulate$ amortisation an$ im'airment losses, if any= Su+se<uent e:'en$iture is ca'italise$ only %hen it increases the future economic +enefits em+o$ie$ in the s'ecific asset to %hich it relates= *ll other e:'en$itures are reco0nise$ in 'rofit an$ loss as incurre$= *mortisation is +ase$ on the cost of an asset less its resi$ual value= *mortisation is reco0nise$ in 'rofit an$ loss on a strai0htline +asis over the estimate$ useful lives of intan0i+le assets= *mortisation metho$s, useful lives an$ resi$ual values are revie%e$ at each re'ortin0 $ate an$ a$9uste$, if a''ro'riate= '30 " pair ent =inancial assets 6including receiva/les7 #inancial assets are assesse$ at each re'ortin0 $ate to $etermine %hether there is o+9ective evi$ence that they are im'aire$= * financial asset is im'aire$ if o+9ective evi$ence in$icates that a loss event has occurre$ after the initial reco0nition of the asset an$ that the loss event ha$ a ne0ative effect on the estimate$ future cash flo%s of that asset that can +e estimate$ relia+ly= !+9ective evi$ence that financial assets are im'aire$ may inclu$e $efault or $elin<uency +y a $e+tor, in$ications that a $e+tor or issuer %ill enter +an,ru'tcy= *ll in$ivi$ually si0nificant receiva+les are assesse$ for s'ecific im'airment= *ll in$ivi$ually si0nificant receiva+les foun$ not to +e s'ecifically im'aire$ are then collectively assesse$ for any im'airment that has +een incurre$ +ut not yet i$entifie$= 4eceiva+les that are not in$ivi$ually si0nificant are collectively assesse$ for im'airment +y 0rou'in0 to0ether receiva+les %ith similar ris, characteristics= *n im'airment loss in res'ect of a financial asset measure$ at amortise$ cost is calculate$ as the $ifference +et%een its carryin0 amount an$ the 'resent value of the estimate$ future cash flo%s $iscounte$ at the asset?s ori0inal effective interest rate= 5osses are reco0nise$ in 'rofit an$ loss an$ reflecte$ in an allo%ance account a0ainst receiva+les= 6nterest on the im'aire$ asset continues to +e reco0nise$ throu0h the un%in$in0 of the $iscount= ;hen a su+se<uent event causes the amount of im'airment loss to $ecrease, the $ecrease in im'airment loss is reverse$ throu0h 'rofit an$ loss account= $onB=inancial assets "he carryin0 amounts of non>financial assets other than inventories an$ $eferre$ ta: asset, are revie%e$ at each re'ortin0 $ate to $etermine %hether there is any in$ication of im'airment= 6f any such in$ication e:ists, then the asset?s recovera+le amount is estimate$= "he recovera+le amount of an asset or cash>0eneratin0 unit is the 0reater of its value in use an$ its fair value less costs to sell= 6n assessin0 value in use, the estimate$ future cash flo%s are $iscounte$ to their 'resent value usin0 a 're>ta: $iscount rate that reflects current mar,et assessment of the time value of money an$ the ris,s s'ecific to the asset= #or the 'ur'ose of im'airment testin0, assets that cannot +e teste$ in$ivi$ually are 0rou'e$ to0ether into the smallest 0rou' of assets that 0enerates cash inflo%s from continuin0 use that are lar0ely in$e'en$ent of the cash inflo%s of other assets or 0rou's of assets (the Jcash> 0eneratin0 unit, or C8IK)= "he 8rou'?s cor'orate assets $o not 0enerate se'arate cash inflo%s= 6f there is an in$ication that a cor'orate asset may +e im'aire$, then the recovera+le amount is $etermine$ for the C8I to %hich the cor'orate asset +elon0s= *n im'airment loss is reco0nise$ if the carryin0 amount of an asset or its C8I e:cee$s its estimate$ recovera+le amount= 6m'airment losses are reco0nise$ in 'rofit an$ loss account= 6m'airment loss reco0nise$ in 'rior 'erio$s is assesse$ at each re'ortin0 $ate for any in$ications that the loss has $ecrease$ or no lon0er e:ists= *n im'airment loss is reverse$ if there has +een a chan0e in the estimates use$ to $etermine the recovera+le
"C" Pa-istan ?i ited *nnual 4e'ort 2030 &'.

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

amount= *n im'airment loss is reverse$ only to the e:tent that the asset?s carryin0 amount $oes not e:cee$ the carryin0 amount that %oul$ have +een $etermine$, net of $e'reciation or amortisation, if no im'airment loss ha$ +een reco0nise$= '3&0 "nvest ent 6nvestment in un<uote$ e<uity security is classifie$ as availa+le for sale is state$ at cost less 'rovision for im'airment, if any= '3&& #tores and spares Stores an$ s'ares are state$ at the lo%er of cost an$ net realisa+le value= Cost is $etermine$ usin0 the %ei0hte$ avera0e metho$= '3&% #toc-BinBtrade Stoc,>in>tra$e is value$ at lo%er of %ei0hte$ avera0e cost an$ estimate$ net realisa+le value= Cost com'rises all costs of 'urchase, costs of conversion an$ other costs incurre$ in +rin0in0 the inventories to their 'resent location an$ con$ition= .et realisa+le value si0nifies the estimate$ sellin0 'rice in the or$inary course of +usiness less net estimate$ costs of com'letion an$ sellin0 e:'enses= '3&' 2rade de/ts and ot5er receiva/les "ra$e $e+ts an$ other receiva+les are reco0nise$ initially at fair value 'lus $irectly attri+uta+le cost, if any, an$ su+se<uently measure$ at amortise$ cost= * 'rovision for im'airment of tra$e an$ other receiva+les is esta+lishe$ %hen there is o+9ective evi$ence that the 8rou' %ill not +e a+le to collect all amounts $ue accor$in0 to the ori0inal terms of receiva+les (4efer note 40=(=3)= '3&4 =oreign currency translation "ransactions $enominate$ in forei0n currencies are translate$ to )a, 4u'ees, %hich is the 8rou'?s functional currency, at the forei0n e:chan0e rate 'revailin0 at the $ate of transaction= Monetary assets an$ lia+ilities in forei0n currencies are translate$ into )a, 4u'ees at the forei0n e:chan0e rates at the +alance sheet $ate= *ll e:chan0e $ifferences are ta,en to the 'rofit an$ loss account= '3&5 =unctional and presentation currency 6tems inclu$e$ in the consoli$ate$ financial statements are measure$ usin0 the currency of the 'rimary economic environment in %hich the 8rou' o'erates= "he consoli$ate$ financial statements are 'resente$ in )a, 4u'ees, %hich is the 8rou'?s functional an$ 'resentation currency= '3&6 )evenue recognition H 4evenue from the sale of 0oo$s is reco0nise$ %hen the si0nificant ris,s an$ re%ar$s of o%nershi' have +een transferre$ to the customer= #or those 'ro$ucts %hich are often sol$ %ith a ri0ht of return, accumulate$ e:'erience is use$ to estimate an$ 'rovi$e for such returns at the time of sale= H Commission income is reco0nise$ on $ate of shi'ment from su''liers= H )rofit on short>term $e'osits is accounte$ for on a time>a''ortione$ +asis usin0 the effective interest rate metho$= H 2ivi$en$ income is reco0nise$ %hen the ri0ht to receive $ivi$en$ is esta+lishe$= H "oll manufacturin0 income is reco0nise$ %hen services are ren$ere$= '3&. =inancial e!pense and finance inco e #inancial e:'enses are reco0nise$ usin0 the effective interest rate metho$ an$ com'rise forei0n currency losses an$ mar,>u' / interest e:'ense on +orro%in0s= #inance income com'rises interest income on fun$s investe$= Mar,>u' / 6nterest income is reco0nise$ as it accrues in 'rofit an$ loss account, usin0 the effective interest rate metho$= '3&8 #eg ent reporting Se0ment re'ortin0 is +ase$ on the o'eratin0 (+usiness) se0ments of the 8rou'= *n o'eratin0 se0ment is a com'onent of the 8rou' that en0a0es in +usiness activities from %hich it may earn revenues an$ incur e:'enses, inclu$in0 revenues an$ e:'enses that relate to transactions %ith any of the 8rou'?s other com'onents= *n o'eratin0 se0ment?s o'eratin0 results are revie%e$ re0ularly +y the CE! to ma,e $ecisions a+out resources to +e allocate$ to the se0ment an$ assess its 'erformance, an$ for %hich $iscrete financial information is availa+le=

&'8

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

Se0ment results that are re'orte$ to the CE! inclu$e items $irectly attri+uta+le to a se0ment as %ell as those that can +e allocate$ on a reasona+le +asis= Inallocate$ items com'rise mainly cor'orate assets, income ta: assets, lia+ilities an$ relate$ income an$ e:'en$iture= Se0ment ca'ital e:'en$iture is the total cost incurre$ $urin0 the 'erio$ to ac<uire 'ro'erty, 'lant an$ e<ui'ment= "he +usiness se0ments are en0a0e$ in 'rovi$in0 'ro$ucts or services %hich are su+9ect to ris,s an$ re%ar$s %hich $iffer from the ris,s an$ re%ar$s of other se0ments= Se0ments re'orte$ are )olyester, So$a *sh, )aints, 5ife Sciences, Chemicals an$ others ()o%er8en), %hich also reflects the mana0ement structure of the 8rou'= '3&0 =inance lease 5eases that transfer su+stantially all the ris,s an$ re%ar$s inci$ental to o%nershi' of an asset are classifie$ as finance lease= *ssets su+9ect to finance lease are state$ at amounts e<ual to the fair value or, if lo%er, the 'resent value of the minimum lease 'ayments= "he minimum lease 'ayments are a''ortione$ +et%een the finance char0e an$ the re$uction of the outstan$in0 lia+ility= *ssets ac<uire$ un$er finance leases are $e'reciate$ in accor$ance %ith the 8rou'?s $e'reciation 'olicy on 'ro'erty, 'lant an$ e<ui'ment= "he finance cost is char0e$ to 'rofit an$ loss account an$ is inclu$e$ un$er financial char0es= '3%0 ,perating lease J "Iara5 contracts 5eases in %hich a si0nificant 'ortion of the ris,s an$ re%ar$s of o%nershi' are retaine$ +y the lessor are classifie$ as o'eratin0 leases= )ayments ma$e un$er o'eratin0 leases (net of any incentives receive$ from the lessor) are char0e$ to the 'rofit an$ loss account on a strai0ht>line +asis over the 'erio$ of the lease= )ayments ma$e un$er 69arah contracts are reco0nise$ in the 'rofit an$ loss account on a strai0ht>line +asis over the term of the lease= '3%& Cas5 and cas5 e+uivalents Cash an$ cash e<uivalents com'rise of cash in han$ an$ current an$ $e'osit accounts hel$ %ith +an,s= 4unnin0 finance facilities availe$ +y the 8rou', %hich are 'aya+le on $eman$ an$ form an inte0ral 'art of the 8rou'?s cash mana0ement are inclu$e$ as 'art of cash an$ cash e<uivalents for the 'ur'ose of statement of cash flo%s= '3%% 1orrowings and t5eir cost &orro%in0s are reco0nise$ initially at fair value, net of transaction costs incurre$= &orro%in0 costs are reco0nise$ as an e:'ense in the 'erio$ in %hich these are incurre$ e:ce't to the e:tent of +orro%in0 costs that are $irectly attri+uta+le to the ac<uisition, construction or 'ro$uction of a <ualifyin0 asset= Such +orro%in0 costs, if any, are ca'italise$ as 'art of the cost of that asset= '3%' =inancial lia/ilities *ll financial lia+ilities are initially reco0nise$ at fair value 'lus $irectly attri+uta+le cost, if any, an$ su+se<uently measure$ at amortise$ cost= '3%4 Derivative financial instru ents "he 8rou' uses $erivative financial instruments to he$0e its e:'osure to forei0n e:chan0e an$ interest rate ris,s arisin0 from o'erational, financin0 an$ investment activities= 6n accor$ance %ith its treasury 'olicy, the 8rou' $oes not hol$ or issue $erivative financial instruments for tra$in0 'ur'oses= Ho%ever, $erivatives that $o not <ualify for he$0e accountin0 are accounte$ for as tra$in0 instruments= '3%5 ,ffBsetting #inancial assets an$ lia+ilities are offset an$ the net amount is re'orte$ in the financial statements only %hen there is a le0ally enforcea+le ri0ht to set>off the reco0nise$ amount an$ the 8rou' inten$s either to settle on a net +asis, or to realise the assets an$ to settle the lia+ilities simultaneously= '3%6 *arnings per #5are "he 8rou' 'resents +asic an$ $ilute$ earnin0s 'er share (E)S) $ata for its or$inary shares= &asic E)S is calculate$ +y $ivi$in0 the 'rofit after ta: attri+uta+le to or$inary sharehol$ers of the 8rou' +y the %ei0hte$ avera0e num+er of or$inary shares outstan$in0 $urin0 the 'erio$=

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&'0

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0

(.um+ers)

200A

%0&0

200A

43

"ssued( #u/scri/ed and PaidBup Capital !r$inary shares of 4s 30 each fully 'ai$ in cash !r$inary shares of 4s 30 each issue$ as fully 'ai$ for consi$eration other than cash un$er scheme of arran0ement for amal0amation !r$inary shares of 4s 30 each issue$ as fully 'ai$ +onus shares !r$inary shares issue$ 'ursuant to the Scheme as fully 'ai$ for consi$eration of investment in associate (note 4=3)

&%5(840(&00

32(,140,3A0

&(%58(40%

3,2(1,402

'&8(40% %5(%%.

31,4A2 2(,227

'(&85 %5%

,31( 2(2

&%(6&8('0& &'8(80%('00 43& 43%

32,/31, A3 3 1,102, 00

&%6(&84 &('88(0%'

32/,314 3, 11,02

;ith effect from !cto+er 3, 2000 the )ure "ere'hthalic *ci$ ()"*) &usiness of the Com'any %as $emer0e$ un$er a Scheme of *rran0ement (Jthe SchemeK) $ate$ 2ecem+er 32, 2000 a''rove$ +y the sharehol$ers an$ sanctione$ +y the Hi0h Court of Sin$h= 6C6 !micron &=V=, %hich is a %holly o%ne$ su+si$iary of *,-o.o+el .=V=, hel$ 30(,22A,32( (200AG 30(,22A,32() or$inary shares of 4s 30 each at 2ecem+er 3, 2030= *,-o.o+el .=V=, ac<uire$ 6C6 )5C, I@, effective Lanuary 2, 2001, the 'arent com'any of 6C6 !micron &=V=, an$ +ecame the ultimate hol$in0 com'any of 6C6 )a,istan 5imite$= 6C6 )a,istan 5imite$ continues to +e the $irect su+si$iary of 6C6 !micron &=V= Capital )eserves Share 'remium > note (=3 Ca'ital recei'ts > note (=2 > 465(%50 586 465(845 4/(,2(A (1/ 4/(,14(

53

53&

Share 'remium inclu$es the 'remium amountin0 to 4s 0=A02 million receive$ on shares issue$ for the Com'any?s )olyester )lant installation in 3A10 an$ share 'remium of 4s 4/4= (7 million re'resentin0 the $ifference +et%een nominal value of 4s 30 'er share of 32,/31, A3 or$inary shares issue$ +y the Com'any an$ the mar,et value of 4s (A0=(43 million of these shares corres'on$in0 to 2(C hol$in0 ac<uire$ in 5otte )a,istan )"* 5imite$, an e:>associate, at the $ate of ac<uisition i=e= .ovem+er 2, 2003 an$ the num+er of shares that have +een issue$ %ere $etermine$ in accor$ance %ith the Scheme in the ratio +et%een mar,et value of the shares of t%o com'anies +ase$ on the mean of the mi$$le mar,et <uotation of the @arachi Stoc, E:chan0e over the ten tra$in0 $ays +et%een !cto+er 22, 2003 to .ovem+er 2, 2003= Ca'ital recei'ts re'resent the amount receive$ from various 6C6 )5C 0rou' com'anies overseas for the 'urchase of 'ro'erty, 'lant an$ e<ui'ment= "he remittin0 com'anies have no claim to their re'ayments= #urplus on )evaluation of Property( Plant and *+uip ent &alance as on Lanuary 3 5essG "ransfer to una''ro'riate$ 'rofit in res'ect of incremental $e'reciation char0e$ $urin0 the year net of $eferre$ ta: &alance as on 2ecem+er 3 044(&%4 A77, 2

53%

63

6%6(.447 0&.('80

,3AA)

A44,324

&40

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 .3 Provisions for nonB anage ent staff gratuity and eligi/le retired e ployeesM edical sc5e e B note .3& #taff )etire ent 1enefits
Pension .3&3& =unded Gratuity

200A 31 ,2(1

%%'(&8&

.3&

%0&0 Gnfunded 2otal )ension #un$e$ 8ratuity

200A Infun$e$ "otal

25e a ounts recognised in t5e profit and loss account against defined /enefit sc5e es are as follows; Current service cost 6nterest cost E:'ecte$ return on 'lan assets "ermination cost 4eco0nition of actuarial loss .et char0e for the year 4.(0&0 &56(844 6&''(%507 > &05(&.5 &.5(..0 '&(885 56('0& 6'0(0%07 > &%(060 60('%6 .8(805 %&'(&45 6&.'(&.07 > &&.(%'5 %'6(&05 0(.4& 40(4%6 B > 8(8%4 58(00& 24,(2/ 3( ,/ 4 (A1,44A) 3 ,04 303,AA7 3A4,7(3 2/,22 /2,A2/ ( 3,A0 ) > 3 ,(12 70,121 (0,74A 23/,(/0 (3 0, (2) 3 ,04 33(,(7A 2/(,(7A 7,( ( 43,37 > > 7, 00 (/,001

.3&3%

:ove ents in t5e net asset J 6lia/ility7 recognised in t5e /alance s5eet are as follows; !'enin0 +alance .et Char0e for the year > note 7=3=3 Contri+utions / 'ayments $urin0 the year Closin0 +alance '&0(4'. 6&.5(..07 &08(0%6 '4%(584 ''(86. 660('%67 46(%04 &0(8'5 '5'('04 6%'6(&057 %45(%%0 '6%(4&0 6&8'(%587 658(00&7 &0(068 6%%'(&8&7 2 1,73/ (3A4,7(3) 27(,472 3A,4 7 /2,341 (70,121) 42,(47 ,1/7 00,1/4 (2/(,(7A) 31,03A ( , 04 (342,41A) ((/,001) 3(,2 A (31 ,2(1)

.3&3'

25e a ounts recognised in t5e /alance s5eet are as follows; #air value of 'lan assets > note 7=3=( )resent value of $efine$ +enefit o+li0ation > note 7=3=4 2eficit Inreco0nise$ actuarial loss 4eco0nise$ asset / (lia+ility) &('80(&.' 6&(54.(84&7 6&6.(6687 5&0(%5% '4%(584 '0&('04 655'('6'7 6&6%(0507 &8&(804 &0(8'5 &(..&(4.. 6%(&0&(%047 6'%0(.%.7 60%(&46 '6%(4&0 B 6'8&(84%7 6'8&(84%7 &58(66& 6%%'(&8&7 3,0 7, 3A (3,21(,127) (241,(01) (/7,A4( 3A,4 7 37,3(0 (4/2,A73) (34(,123) 37A,/11 ,1/7 3, (4,4/A (3,741,7A1) ( A4, 2A) 747,/ ( , 04 > ( 40,014) ( 40,014) 3(/,12/ (31 ,2(1)

.3&34

:ove ent in t5e present value of defined /enefit o/ligation; !'enin0 +alance Service cost 6nterest cost &enefits 'ai$ "ermination cost *ctuarial loss )resent value of the $efine$ +enefit o+li0ation at the en$ of the year &(%85(8%. 4.(0&0 &56(844 664(6&07 B &%%(..0 &(54.(84& 46%(0.& '&(885 56('0& 6'0(.447 B '%(050 55'('6' &(.48(.08 .8(805 %&'(&45 605('547 B &55(.%0 %(&0&(%04 '40(084 0(.4& 40(4%6 6&0(0687 B &0(650 '8&(84% 3,337,(2( 24,(2/ 3( ,/ 4 (21/,21/) 3 ,04 2/ , 1( 3,21(,127 442,477 2/,22 /2,A2/ (30 ,7/1) > (,33 4/2,A73 3,(/0,002 (0,74A 23/,(/0 ( A0,0(4) 3 ,04 2A1,4A1 3,741,7A1 2(A,714 7,( ( 43,37 (3(,2 A) > 4/,1 3 40,014

.3&35

:ove ent in t5e fair value of plan assets; !'enin0 +alance E:'ecte$ return Contri+utions &enefits 'ai$ *ctuarial 0ain #air value of 'lan assets at the en$ of the year &(0'.('&0 &''(%50 &08(0%6 664(6&07 .5(%88 &('80(&.' '&.(&50 '0(0%0 46(%04 6'0(.447 &8(684 '0&('04 &('54(460 &.'(&.0 %45(%%0 605('547 0'(0.% &(..&(4.. B B B B B B 13(,/(1 A1,44A 27(,472 (21/,21/) 3 4,02/ 3,0 7, 3A 30,404 3,A0 42,(47 (30 ,7/1) /,0/4 37,3(0 3,32/,0/2 3 0, (2 31,03A ( A0,0(4) 370,0A0 3, (4,4/A > > > > > >

.3&36

Fistorical infor ation *s at 2ecem+er 3 )resent Value of $efine$ +enefit o+li0ation #air value of 'lan assets 2eficit E:'erience a$9ustments on 'lan lia+ilities E:'erience a$9ustments on 'lan assets %0&0 %(48'(046 &(..&(4.. .&&(560 .D 5D 200A 2,011,112 3, (4,4/A 7 4,43 C 3 C 2001 3,13A,71/ 3,32/,0/2 /A ,724 3 C (27C) 2007 3,(((, 17 3, 32,A 1 242,44A 3/C 7C 200/ 3,2 /,41 3,0/7,30A 3/A, 74 3C (AC)

.3&3.

:aIor categories J co position of plan assets are as follows; 2e+t instruments E<uity at mar,et value Cash

%0&0 6%D '0D 8D

200A (0C 2C 31C

Mortality of active em'loyees an$ 'ensioners %ill +e re'resente$ +y the 56C(A/>A1) "a+le= "he ta+le has +een rate$ $o%n three years for mortality of female 'ensioners an$ %i$o%s= "he return on 'lan assets %as assume$ to e<ual the $iscount rate= *ctual (loss) / return on 'lan assets $urin0 2030 %as 4s 2/7=342 million (200AG 4s 00=442 million)= "C" Pa-istan ?i ited *nnual 4e'ort 2030 &4&

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 .3&38 "he 'rinci'al actuarial assum'tions at the re'ortin0 $ate %ere as follo%sG 2iscount rate E:'ecte$ return on 'lan assets #uture salary increases #uture 'ension increases &43%5D &43%5D &%300D 83.5D

200A

32=7(C 32=7(C 30=/0C 7= 1C

.3&30 Me$ical cost tren$ is assume$ to follo% inflation= "he sensitivity to reflect the effect of a 3C movement in the assume$ me$ical cost tren$ %ere as follo%sG %0&0 6ncrease 2ecrease 83.5D Effect on the a00re0ate of the current service cost an$ interest cost Effect on the $efine$ +enefit o+li0ation '5(005 %0&(80. A=7(C 44,3 A (,02( 7=7(C 2,00 2((,217

"hese fi0ures are +ase$ on the latest actuarial valuation, as at 2ecem+er 3, 2030= "he valuation uses the )ro9ecte$ Init Cre$it metho$= *ctuarial 0ains an$ losses are amortise$ over the e:'ecte$ future service life of current mem+ers= .3&3&0 "he 8rou' contri+ute$ 4s / =200 million (200AG 4s (/=00/ million) an$ 4s (=(21 million (200AG 4s 2A=(/4 million) to the 'rovi$ent fun$ an$ the $efine$ contri+ution su'erannuation fun$ res'ectively $urin0 the year= %0&0 ,pening 83 Deferred 2a! 6?ia/ility7 J Asset B net Deducti/le te porary differences "a: losses carrie$ for%ar$ )rovisions for retirement +enefits, $ou+tful $e+ts an$ others 2a!a/le te porary differences )ro'erty, 'lant an$ e<ui'ment 6&('6&(4&07 6&(0%5(0087 %&(066 &54(850 6&('40('5'7 68.0(%487 (3,0A1,170) (470,704) (2/2,(4A) (((4, A4) (3, /3,43A) (3,02(,0A1) > ''6('%& > &''(.84 > 4.0(&05 234,42( 43 ,743 (234,42() (77,420) > /, 23 )eversal Closing !'enin0 200A Char0e Closin0

%0&0 03 #5ortB2er =inancing B

200A

4unnin0 finances utilise$ un$er mar,>u' arran0ements > note A=3 03& )unning =inance

/,0 1

"he facilities for runnin0 finance availa+le from various +an,s amounte$ to 4s 2,10/ million (2ecem+er 3, 200AG 4s 2,AA3 million) an$ carrie$ mar,>u' $urin0 the 'erio$ ran0in0 from relevant @6&!4 B 0=7(C to =47C 'er annum %ith an avera0e mar,>u' rate as on 2ecem+er 3, 2030 at relevant @6&!4 B 3=2/C 'er annum (2ecem+er 3, 200AG 32=/4 to 37= 7 'ercent 'er annum)= "he facilities are secure$ +y hy'othecation char0e over the 'resent an$ future stoc,>in>tra$e an$ +oo, $e+ts of the 8rou' an$ first 'ari 'assu char0e over 'lant an$ machinery of So$a *sh &usiness of the 8rou'=

&4%

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 &03 2rade and ,t5er Paya/les "ra$e cre$itors > note 30=3 &ills 'aya+le Sales ta:, e:cise an$ custom $uties Mar,>u' accrue$ on short>term financin0 *ccrue$ interest / return on unsecure$ loan > note 30=2 *ccrue$ e:'enses "echnical service fee / royalty ;or,ers? 'rofit 'artici'ation fun$ > note 30= ;or,ers? %elfare fun$ 2istri+utors? security $e'osits > 'aya+le on termination of $istri+utorshi' > note 30=4 Contractors? earnest / retention money *$vances from customers Inclaime$ $ivi$en$s )aya+le for ca'ital e:'en$iture )rovision for com'ensate$ a+sences > note 30=( !thers &03& "he a+ove +alances inclu$e amounts $ue to follo%in0 associate$ un$erta,in0sG 6C6 )aints I@ ('art of *,-o.o+el 0rou') 6C6 )aints (*sia )acific) )"E 5t$ ('art of *,-o.o+el 0rou') *,-o.o+el )aints Malaysia Marine )rotective 6nternational Coatin0 Malaysia ('art of *,-o.o+el 0rou') C&) 4esi$ual ('art of *,-o.o+el 0rou') *,-o.o+el .V *,-o.o+el #unctional Chemicals 6nternational )aint .etherlan$ ('art of *,-o.o+el 0rou') 6C6 )ac,a0in0 Coatin0s ('art of *,-o.o+el 0rou') *,-o.o+el #unctional Chemicals &V *,-o.o+el #unctional Chemicals )te 5t$ *,-o.o+el Surface Chemistry )te 5t$ 6C6 )aints "hailan$ ('art of *,-o.o+el 0rou') 6C6 )aints 6n$onesia ('art of *,-o.o+el 0rou') C4 .etherlan$s ('art of *,-o.o+el 0rou') *,-o.o+el Car 4efinishes &V &03% &03' "his re'resents amount 'aya+le to Mortar 6nvestments 6nternational 5imite$= @or-ersM profit participation fund &alance as on Lanuary 3 *llocation for the year > note 0 6nterest on fun$s utilise$ in the 8rou'?s +usinesses at /0=00 'ercent (200AG 43=2( 'ercent) 'er annum > note 2A 5essG > *mount 'ai$ on +ehalf of the fun$ > 2e'osite$ %ith the 8overnment of )a,istan &alance as on 2ecem+er 3 &034 &035 &65(&0' &00('0% '64(405 6(048 '.&('5' .%(5%& 0%(&8. &64(.08 %06(645 &.4 &5 B B &(&0. '6(%80 '(005 &54 &0. &&(50% %(8%. '(0&4 %5 B B %'(&0' 8%(5.' &(08%(0.5 &(088(466 &%5(5.0 &(.86 '05(&00 &(&60(.05 '0('&6 %06(645 ..(&'0 80(.00 &&(65' %5'(.5% 4(544 &0&(55& %0(000 &0.(6&0 5(566(6%&

200A

A77,/00 2,270,1(( 377,/31 2,732 2AA,/47 3,377, 42 (,A7( 3/(,30 33A,A(4 73,AA 30,30 241,727 4,(41 3 A,( 2 20,000 3(3,713 (,17 ,4A0

/,A33 2/,30( , A2 3,400 > > > > > > > > > 303 (, A > 4 ,241

341,234 3/2, 2/ 30,(40 2,30( 32,/4( 72,2/0 7(,212 347,(42 3/(,30

6nterest on security $e'osits from certain $istri+utors is 'aya+le at 33=( 'ercent (200AG 7=( 'ercent) 'er annum as s'ecifie$ in the res'ective a0reements= "his fi0ure is +ase$ on the actuarial valuation, as at 2ecem+er 3, 200A=
"C" Pa-istan ?i ited *nnual 4e'ort 2030 &4'

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 &&3 &&3& Contingencies and Co it ents

200A

Claims a0ainst the 8rou' not ac,no%le$0e$ as $e+ts are as follo%sG 5ocal +o$ies Sales ta: authorities !thers 0&(''6 '&(880 &'.(0'4 %6&(&50 2, 42 A , 2 ( , A/ 37A,0/3

&&3%

* notice %as issue$ +y the Environmental )rotection *uthority (E)*) a0ainst the )aints factory locate$ at #ero-'ur 4oa$, 5ahore= )ursuant to this an or$er %as 'asse$ +y the E)* for violation of certain 'rovisions of the ?*ct?= "he Com'any is of the o'inion that the or$er %as not 9ustifie$ an$ has file$ an a''eal a0ainst the or$er in the Environmental "ri+unal in 5ahore, %hich is 'en$in0= 8uarantees issue$ +y the Com'any in res'ect of financial an$ o'erational o+li0ations of 5otte )a,istan )"* 5imite$ 'ursuant to the Scheme of arran0ement, amountin0 to 4s 2,3A0 million (200AG 4s 2,210 million) a0ainst %hich 5otte )a,istan )"* 5imite$ an$ @) Chemicals Cor'oration have issue$ counter 0uarantees to the Com'any= 8uarantee issue$ +y the Com'any to a +an, in res'ect of financin0 o+taine$ +y Senior E:ecutives amounte$ to 4s ( million (200AG 4s ( million), in accor$ance %ith the terms of em'loyment= 8uarantee issue$ +y the Com'any of 4s 3 million (200AG 4s 3 )o%er8en 5imite$ for availin0 fun$e$ facility= million) to a +an, on +ehalf of its su+si$iary 6C6 )a,istan =17( million)=

&&3'

&&34 &&35 &&36 &&3.

Commitments in res'ect of ca'ital e:'en$iture amounte$ to 4s 3(2=/4/ million (200AG 4s

Commitments for rentals un$er o'eratin0 lease / i9arah contracts in res'ect of vehicles amountin0 to 4s 3/(=344 million (200AG 4s 3A/=/1( million) are as follo%sG Lear 2030 2033 2032 203 2034 B 6.(008 5.(%%' '%(8.8 .(&'5 &65(&44 )aya+le not later than one year )aya+le later than one year +ut not later than five years 6.(008 0.(%'6 &65(&44 /7,23 (1,/ 4(,772 2 ,7A7 3,270 3A/,/1( /7,23 32A,472 3A/,/1(

&%3 &%3&

Property( Plant and *+uip ent "he follo%in0 is a statement of 'ro'erty, 'lant an$ e<ui'mentG !'eratin0 'ro'erty, 'lant an$ e<ui'ment > note 32=2 Ca'ital %or,>in>'ro0ress > note 32=/ 0(%%4(044 %85('56 0(5&0('00 A,44(,A17 43/,11 A,1/2,170

&44

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

&%3%

"he follo%in0 is a statement of o'eratin0 'ro'erty, 'lant an$ e<ui'mentG

?and =ree5old ?ease5old ?i e /eds on free5old land 1uildings ,n ,n free5old lease5old land land Plant and ac5inery )ailway sidings )olling =urniture stoc- and and ve5icles e+uip ent 2otal

%0&0 $et carrying value /asis Lear ended Dece /er '&( %0&0 !'enin0 net +oo, value (.&V) *$$ition/transfer (at cost) 2is'osal/transfer (at .&V) 2e'reciation char0e Closin0 net +oo, value (.&V) Gross carrying value /asis At Dece /er '&( %0&0 Cost/4evaluation *ccumulate$ 2e'reciation .et +oo, value Depreciation rate D per annu

1 /,702 27,A 4 > > 1/4,/ /

2,1 7 > > (72) 2,7/(

/1,(3( 0,A10 ( 2) (A,100) 1A,//

243,24/ 47,A(4 > ( 7, A3) 2(3,10A

72(, 77 41,/ > (/1,77() 70(,2 (

7, 12, A2 (4 ,03A (31,173) (137,( () 7,01A,00(

> > > > >

2/,012 1,724 (2,1/ ) (30,(00) 23,44

3/2,1 / A,44(,A17 A2,21 7AA,(27 (3,0(() (22,123) (( ,/7/) (AA7,74A) 200, 11 A,224,A44

1/4,/ / > 1/4,/ / >

(/7,7AA ((/(,0 4) 2,7/( 2 to 4 =

3/4,7(0 (7(,017) 1A,// to 7=(

AA4,A(7 (74 ,341) 2(3,10A ( to 30

3, 43,71 31,(33,2 7 (/ /,(41) (33,422,2 2) 70(,2 ( 7,01A,00( 2=( to 30 200A = to 30

2A7 (2A7) > =

32/,073 (304,/21) 23,44 30 to 2(

720,033 2 ,2A3,(43 ((3A,/2 ) (34,0//,(A7) 200, 11 A,224,A44 30 to =

$et carrying value /asis Lear ended Dece /er '&( %000 !'enin0 net +oo, value (.&V) *$$ition/transfer (at cost) 2is'osal/transfer (at .&V) 2e'reciation char0e Closin0 net +oo, value (.&V) Gross carrying value /asis At Dece /er '&( %000 Cost/4evaluation *ccumulate$ 2e'reciation .et +oo, value Depreciation rate D per annu 1 /,702 > > > 1 /,702 7,34A > > (4, 32) 2,1 7 71,2(/ > > (A,743) /1,(3( 24 ,71 0,723 > ( ,2(1) 243,24/ 4((,A4( 2,/23 > (/ ,31A) 72(, 77 /,4 3,7/3 3,74 ,(0/ (A,22A) (71 ,/4/) 7, 12, A2 > > > > > 3,742 7,(/0 (2,077) (33,34 ) 2/,012 321,12( 1,234,3/ 71,110 2,3A ,211 ((4A) (33,1(() (44, 20) (A4A,/0A) 3/2,1 / A,44(,A17

1 /,702 > 1 /,702 >

(/7,7AA ((/4,A/2) 2,1 7 2 to 4 =

3 ,120 (/(, 0() /1,(3( to 7=(

A47,00 (70(,7(7) 243,24/ ( to 30

3,2A ,A37 31,034,(27 ((/1,(40) (30,/ 2,3 () 72(, 77 7, 12, A2 2=( to 30 = to 30

2A7 (2A7) > =

320,(A1 (A4,(3/) 2/,012 30 to 2(

//A,(1( 22,(14,241 ((0/,74A) (3 ,3 1,2/3) 3/2,1 / A,44(,A17 30 to =

&%3'

Su+se<uent to revaluation on !cto+er 3, 3A(A an$ Se'tem+er 0, 2000, %hich ha$ resulte$ in a sur'lus of 4s 34=207 million an$ 4s 3,(/A=1/A million res'ectively, the lan$ an$ 'lant an$ machinery %ere revalue$ a0ain on 2ecem+er 3(, 200/ resultin0 in a net sur'lus of 4s //7=A/7 million= "he valuation %as con$ucte$ +y in$e'en$ent valuers= Valuations for 'lant an$ machinery %as the o'en mar,et value of the asset +ase$ on estimate$ 0ross re'lacement cost, $e'reciate$ to reflect the resi$ual service 'otential of the asset havin0 'ai$ $ue re0ar$ to a0e, con$ition an$ o+solescence= 5an$ %as value$ on the +asis of fair mar,et value= *s at 2ecem+er 3, 2030 'lant an$ machinery inclu$e$ e<ui'ments hel$ %ith Searle )a,istan 5imite$ an$ Ma'le )harmaceutical ()rivate) 5imite$ (toll manufacturers), havin0 cost an$ net +oo, values as follo%sG %0&0 200A Cost $et /oo- value 4(&00 '(&00 ,200 2,(00

&%34

&%343& Ha$ there +een no revaluation, the net +oo, value of s'ecific classes of o'eratin0 'ro'erty, 'lant an$ e<ui'ment %oul$ have amounte$ toG $et 1oo- 9alue #reehol$ lan$ )lant an$ machinery 4ollin0 stoc, an$ vehicles #urniture an$ e<ui'ment &%35 "he $e'reciation char0e for the year has +een allocate$ as follo%sG Cost of sales > note 2/ Sellin0 an$ $istri+ution e:'enses > note 27 *$ministration an$ 0eneral e:'enses > note 21 04%(&6. &0(056 44(6%6 00.(.40
"C" Pa-istan ?i ited

48(86' 6(00&(86& %&(44' %00('88 .(&.%(555

20,A2A 7,3((,(03 2/,012 3/2,1 / 7, /(, 41

A02,3/4 32,72/ 4,73A A4A,/0A

*nnual 4e'ort 2030 &45

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 &%36 "he follo%in0 is a statement of ca'ital %or,>in>'ro0ressG Civil %or,s an$ +uil$in0s )lant an$ machinery Miscellaneous e<ui'ment *$vances to su''liers / contractors 40(%6& &0.(464 8(00' '8(6'8 %85('56 &%3.

200A

(3,323 20A,/ 1 ,//4 322,4/0 43/,11

2etails of o'eratin0 'ro'erty, 'lant an$ e<ui'ment $is'osals havin0 net +oo, value in e:cess of 4s (0,000 are as follo%sG %0&0
:ode of sale Plant and ac5inery "en$er 27,0A( 32,3(7 34,A 1 4,A37 *lfa 5aval Mi$$leeast 5t$= an$ Muhamma$ *,ram 8houri, Man$i &ahau$$in *l Ha+i+, *%ami )aints, Saa$ contractor, *sian )aints, 4oomi )aints, @hurram Contractors, 5ahore Cost Accu ulated depreciation $et /oovalue #ale proceeds Particulars of /uyers

8as con$enser & Various items

"intin0 Machines & 2is'enser

.e0otiation

4,310

711

, A2

,333

)olling stoc- and ve5icles Hon$a City & "oyota Corolla Hon$a Motorcycle =urniture and e+uip ent ;ater coolin0 coil an$ Chiller *uction 4/7 2 344 3A4 Ha+i+ullah @han, @arachi 200A Plant and ac5inery *uction .e0otiation 21,(7/ 4,42A 2 ,01A 730 (,417 ,73A , 1 Hi>"ech Electronics & Machinery, @arachi Laffer an$ Sons=, Chau$hry )aint House, Color &an, an$ *%an &rothers ,73A *uction *uction 3,(30 10 3A2 3, 31 77 3,A24 70 Murta-a @han &a+ar an$ Sye$ #arhat *++as Lafri, @arachi Sye$ 8hulam Mustafa, 5ahore

2ust e:traction unit an$ other items "intin0 Machines )olling stoc- and ve5icles "oyota Corolla > 2 nos Hino 2um' "ruc,s

.e0otiation *uction

3,413 1,101

7 4 7,(3A

747 3,21A

2,011 3,A02

"ufail 6<+al & M 6nam, 5ahore Hi>"ech Electronics & Machinery, @arachi

&46

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

&'3

"ntangi/le Assets #oftware $et carrying value /asis Lear ended Dece /er '& !'enin0 net +oo, value (.&V) *$$itions (at cost) *mortisation char0e Closin0 net +oo, value (.&V) Gross carrying a ount At Dece /er '& Cost *ccumulate$ amortisation .et +oo, value )ate of a ortisation D per annu ?icenses

%0&0 Gnder develop ent > /(, (2 > /(, (2 /(, (2 > /(, (2 > 200A 2otal

> (7, /( (1,/0() 41,7/0 22/,34/ (377, 1/) 41,7/0 20

> 17,3 / (23,34() /(,AA3 17,3 / (23,34() /(,AA3 20 to (0

> 20A,1( (2A,7(0) 310,30 71,/ 4 (3A1,( 3) 310,30

$et carrying value /asis Lear ended Dece /er '& !'enin0 net +oo, value (.&V) *$$itions (at cost) *mortisation char0e Closin0 net +oo, value (.&V) Gross carrying a ount At Dece /er '& Cost *ccumulate$ amortisation .et +oo, value )ate of a ortisation D per annu

7,700 > (7,700) > 3/1,713 (3/1,713) > 20

> > > > > > > >

> > > > > > > > %0&0

7,700 > (7,700) > 3/1,713 (3/1,713) > 200A

&'3&

"he amortisation char0e for the year has +een allocate$ as follo%sG Cost of sales > note 2/ Sellin0 an$ $istri+ution e:'enses > note 27 *$ministration an$ 0eneral e:'enses > note 21 .(.46 %(565 &0(4'0 %0(.50 ,/ / / A ,42( 7,700

&43

?ongB2er

"nvest ent B At cost

Gn+uoted *+uity security availa/le for sale > *ra+ian Sea Country Clu+ 5imite$ &53 ?ongB2er ?oans B Considered good

%(500

2,(00

2ue from E:ecutives an$ Em'loyees > note 3(=3

&48(%65

3 3,4 0

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&4.

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 &53& Due fro Directors( *!ecutives and * ployees :otor car 303,147 3A,270 12,(77 Fouse /uilding (3,(/1 2(,424 2/,344 2otal &5'(4&5 44(604 &08(.%& 6.(..8 %8(%'4 '0(544 &48(%65

200A "otal 323,7(/ 2(,33A A/,/ 7 ((,3(/ 20, / 4,7A 3 3,4 0

2ue from 2irectors an$ E:ecutives > note 3(=2 5essG 4eceiva+le %ithin one year > note 20

2ue from Em'loyees 5essG 4eceiva+le %ithin one year > note 20

!utstan$in0 for 'erio$G > less than three years +ut over one year > more than three years

60(08% .8(%8' &48(%65

70,/ / /0,7A4 3 3,4 0

&53%

)econciliation of t5e carrying a ount of loans to Directors and *!ecutives; !'enin0 +alance at +e0innin0 of the year 2is+ursements 4e'ayments &alance at en$ of the year &%&(.56 84(%&5 65%(5567 &5'(4&5 302,337 7A,2A ((A,/(4) 323,7(/

"he a+ove loan +alance inclu$es an amount of 4s 0= 3A million (200AG 4s 3=(A( million) in res'ect of house +uil$in0 relatin0 to ,ey mana0ement 'ersonnel= 5oan outstan$in0 $urin0 the year relates to Mr= *li *= *0a (2irector), %ho %as 'rovi$e$ this loan as 'er his terms of em'loyment= &53' &534 5oans for 'urchase of motor cars an$ house +uil$in0 are re'aya+le +et%een t%o to ten years= "hese loans are interest free an$ 0rante$ to the em'loyees inclu$in0 e:ecutives of the 8rou' in accor$ance %ith their terms of em'loyment= "he ma:imum a00re0ate amount of lon0>term loans $ue from the E:ecutives at the en$ of any month $urin0 the year %as 4s 3/3=(0A million (200AG 4s 32(= /2 million)= ?ongB2er 2e'osits )re'ayments Deposits and Prepay ents %%(8.' &.(585 40(458 &.3 #tores and #pares Stores (inclu$e in>transit 4s 20=0(1 millionS 200AG 4s 33=/21 million) S'ares Consuma+les 5essG )rovision for slo% movin0 an$ o+solete items > note 37=3 &.3& :ove ent of provision in stores and spares !'enin0 Char0e > note 21 ;rite>off Closin0 &'%('.& 64(&00 > &06(4.& 32(, /3 40,000 ( 2,AA0) 3 2, 73 '6(5.0 580(8'' 80(046 .&5(440 &06(4.& 5&8(0.8 7,(/ (/2,701 1/,/13 /1/,A(2 3 2, 73 ((4,(13 23,233 7,1/7 2A,071

&63

&48

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 &83 #toc-BinB2rade 4a% an$ 'ac,in0 material (inclu$e in>transit 4s 4 /=117 millionS 200AG 4s 23A=1 0 million) > note 31=2 ;or,>in>'rocess #inishe$ 0oo$s (inclu$e in>transit 4s A=4A0 millionS 200AG 4s A=2 million) 5essG )rovision for slo% movin0 an$ o+solete stoc,s > note 31=3 > 4a% materials > #inishe$ 0oo$s &(8&6(4%. 48(55' %(&0.(%%5 '(0.%(%05 8.(46' 68(06% &55(5%5 '(8&6(680

200A

3,2A3,(23 1 ,22A 3,AA7,401 , 72,3(1 / ,A44 (4,1/A 331,13 ,2( , 4(

&83&

Movement of 'rovision in stoc,>in>tra$e !'enin0 Char0e > note 21 4eversal ;rite>off Closin0 &&8(8&' 55(5&0 > 6&8(.087 &55(5%5 33 ,1/( 1,/37 ((,000) (21,//A) 331,13

Stoc,s amountin0 to 4s .il (200AG 4s 31=// million) are measure$ at net realisa+le value an$ has +een %ritten $o%n +y 4s .il (200AG 4s 3=/2 million) to arrive at its net realisa+le value= &83% 4a% an$ 'ac,in0 materials inclu$e 4s 21 = 43 million (200AG 4s= 341=(24 million) %hich are hel$ %ith toll manufacturers namely Searle )a,istan 5imite$, Ma'le )harmaceutical ()rivate) 5imite$, E'la 5a+oratories ()rivate) 5imite$, &ree-e )harma ()rivate) 5imite$, .ovaMe$ )harmaceuticals an$ )olymer 6nternational ()rivate) 5imite$= 2rade De/ts Considered good > Secure$ > Insecure$ Considered dou/tful 5essG )rovision forG > 2ou+tful $e+ts > note 40=4 > 2iscounts 'aya+le on Sales %0'(5%8 0.4(0.6 &(%6.(604 '4'(400 &(6&&(004 '4'(400 440(%5' .0%(.4' 8&8('5& 12, 10 132, 23 3,3A4,703 277,/ 3 3,472, 2 277,/ 3 24A,122 (27,4( A44,17A

&03

%03

?oans and Advances Considered good 5oans $ue fromG E:ecutives > note 3(=3 Em'loyees > note 3(=3 *$vances toG 2irectors an$ E:ecutives > note 20=3 Em'loyees Contractors an$ su''liers !thers 44(604 %8(%'4 .%(0%8 5('&4 %(.&0 %00(.0% 4(0&& %&'(.%. %86(655 &0(6%0 %0.(%.5 &0(6%0 %86(655 2(,33A 20, / 4(,412 /,032 /,101 /3,03A (,/3A 7A,4(1 324,A40 1,320 3 ,0/0 1,320 324,A40

Considered dou/tful 5essG )rovision for $ou+tful loans an$ a$vances > note 40=4

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&40

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 %03&

200A

"he ma:imum a00re0ate amount of a$vances $ue from the 2irectors an$ E:ecutives at the en$ of any month $urin0 the year %ere 4s =24( million an$ 4s 7= /4 million (200AG 4s =A/7 million an$ 4s 4=44/ million) res'ectively= 2rade Deposits and #5ortB2er "ra$e $e'osits Short>term 're'ayments Prepay ents %%(45& 4'%(.8& 455(%'% A,7/1 444,//( 4(4,4

%&3

%%3

,t5er )eceiva/les Considered good 2uties, sales ta: an$ octroi refun$s $ue 2ue from *ssociate > note 22=3 & note 22=2 6nsurance claims Commission receiva+le 6nterest income receiva+le 4e+ates receiva+le !thers Considered dou/tful 5essG )rovision for $ou+tful receiva+les > note 22= '&5(40' .8(.%& 0(065 4.('4& 4(5&6 > &0&(.%' 64.(660 &6(08% 664(65& &6(08% 64.(660 2(4,77( 1(,22( 33,117 A,12A 4,0(1 32 ,427 3A4,24 73 ,444 37, 1 7 0,127 37, 1 73 ,444

%%3&

"he ma:imum a00re0ate amount $ue from 6C6 !micron &=V= at the en$ of any month $urin0 the year %as 4s 10=7(( million (200AG 4s 13=A71 million)= "he a+ove +alances inclu$e amounts $ue from follo%in0 associate$ un$erta,in0sG 6C6 !micron &=V= %holly o%ne$ su+si$iary of *,-o.o+el .=V= 6C6 )aints Vietnam ( )art of *,-o.o+el 0rou' ) *,-o.o+el #unctional Chemicals .8(586 80 46 .8(.%& 10,420 4,10( > 1(,22(

%%3%

%%3'

Movement of 'rovision for $ou+tful receiva+les )rovision as at Lanuary 3 Char0e for the year > note 21 4eversal )rovision as at 2ecem+er 3 &.('8' &(004 6&(4057 &6(08% 37,( > (3(0) 37, 1

%'3

Cas5 and 1an- 1alances Short term $e'osits > note 2 =3 Current accounts 6n han$ > Che<ues > Cash %(0%.(000 &(56.('65 %'0(04% &4(%50 4(.'0(55. , (0,000 3,03/, ( 3/A,/ 33,727 4,(47,73

%'3&

"hese are 'lace$ %ith various +an,s %ith maturity u' to Lanuary 2033= "he mar,u' return on these $e'osits ran0es +et%een 33= 0C to 33=73C=

&50

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%43

,perating #eg ent )esults

Polyester %0&0 200A
#ales *f0hanistan &an0la$esh 6n$ia South *frica Inite$ *ra+ Emirates !thers

#oda As5 %0&0 200A

%0&0

Paints

200A

?ife #ciences %0&0 200A

C5e icals %0&0 200A

,t5ersBPowerGen %0&0 200A

%0&0

Group

200A

> > > > > > >

> > > > > > > > 3 ,242, 4( 3 ,242, 4( > 3 ,242, 4( > >

&(%&0 &56(05' 4&0('50 0.(.00 %8(0'4 &4(%4% .&8(488 > .('50(54% 8(060(0'0 > 8(060(0'0 &(%6'(5.0 60(&60

> 1/,47/ 27,112 7/,/0( 3/,((/ ,A1A 233,(01 > /, /0,21( /,(73,7A > /,(73,7A 3,07 ,30( (2, 21

&05(6%' > > > > > &05(6%' > 6(5&6(%58 6(6%&(88& > 6(6%&(88& 000(500 54(&&5

11,100 > > > > > 11,100 > /,3 /,722 /,22(,(22 > /,22(,(22 133,A7A 4A,A47

> > > > > > > > 4(&&5(&80 4(&&5(&80 > 4(&&5(&80 &(&&0 >

> > > > > 130 130 > ,740,0 0 ,740,140 > ,740,140 > >

> &(60% > > > &&(%0. &%(800 4&.(4%0 %(580(%80 '(0&0(608 00(5'0 '(&&0(&4. %00(.00 .(546

> /,111 > > 3(1 31,0(( 2(,303 27/,(7 2,(01,70( 2,130, 7A 14,17( 2,1A(,2(4 272,011 7,030

> > > > > > > 056(6.% > 056(6.% > 056(6.% &'5(40& >

> > > > > > > /7/,00 > /7/,00 > /7/,00 A ,242 >

&06(8'' &58(645 4&0('50 0.(.00 %8(0'4 %5(440 8'.(0&0 &('.4(00% '8(505(05. 40(80.(050 00(5'0 40(006(508 %(50&(40. &%&(8%&

11,100 A , /4 27,112 7/,/0( 3/,734 22,1(4 2/,23A A(2,(7/ 3,A11,017 ,2//,112 14,17( , (3,7(7 2,2(0,434 30A,21(

6nter >se0ment 5ocal

> &8(0''(688 &8(0''(688

Commission / "oll income "urnover Sales ta: E:cise 2uty Commission an$ $iscounts to $istri+utors an$ customers

> &8(0''(688 > >

5%(0'' 5%(0''

44,(37 44,(37

%8%(%.0 &(606(000

307,( A 3,2 2,A72

086(%08 &(04&(0&%

3,00/,122 3,1/1,741

'5%(58. '5'(.06

74,A27 74,A27

&50(6&& 448(866

3/A,022 441,320

> &'5(40&

> A ,242

&(8%4(600 4(5'8(0&.

3,702,127 4,0/2,(2/

.et sales , commission & toll income Cost of sales > note 2 / & 2 / =2 8ross 'rofit Sellin0 an$ $istri+ution e:'enses > note 2 7 *$ministration an$ 0eneral e:'enses > note 2 1 & 2 1 =2 ,perating result %43& %43% #eg ent assets Gnallocated assets

&.(080(.55 &5(6%0(0%0 %('50(8%6

3 ,3A7,121 33,7A4,(A1 3,40 ,2 0

6(46'(0%& 5(0.4(&%4 &('88(80.

(,

1,123 A

4(680(860 '('''(66& &('4.(%08

4, (/,774 2,A1/,74 3, 70,0 3

'(.6&(4.4 %(68&('86 &(080(088

, /(,A3 2, 1 ,/34 A12,2AA

%(66&(%8& %(&5&(0&0 5&0(%.&

2,447,3 4 3,A/A,214 477,1(0

8%&(&8& 606(8.& &%4('&0

(12,7/3 4A ,430 1A, (3

'6('68(58& %0(556(%4& 6(8&%('40

2A,21A,2 3 2 ,(22,241 (,7//,A1

,1A/,

3,442,412

.%(54'

7(,2 /

%0'(&.'

332,22

.65(0.5

72(,334

40'(0'6

424,700

&40(80%

3 2,A03

>

>

&(6.4(.&0

3,470,374

%65(&0& %(0%%(00% &(&.%(060

2 A,333 3,011,11 /,2/2,004

%00(.08 805(0&6 6('60(&%8

2A3,123 3,0 1,4 1 /,042,/3(

448(8.' &''(%60 6(00.(580

13,A4A 2/2,A/1 2, 37,( (

&48(%4% 4'8(8&0 %(8.%(58'

3 7,307 420,4A2 3,42A,4

&45(00& %%'('88 &('44('84

321,07/ 23/,17 7/7,A30

'(0&0 &%&('00 '00(0%.

(4/ 11,10( //,7A/

&('0&(..5 '(8'5(846 &8(&56(66% '(554(0'. %&(.&0(600

3,371, 70 ,331,4 A 37,31/,2A ,1A ,3/0 23,07A,4( /,13 ,/1A 04,3A( 7,337,114

%43' %434

#eg ent lia/ilities Gnallocated lia/ilities

%(%'6(5&6

2,2A7,/4/

&(055(050

3,AA1,/0A

480(080

7( , 30

&(&'&(8'0

3,

3, 1

46%(080

22,172

84(8%'

30A,1/A

6('50('0. '00(65' 6(660(050

%435

$on Bcas5 ite s 6Provision for non B anage ent staff gratuity and eligi/le retired e ployeesM edical sc5e e 7 Depreciation < a ortisation Capital e!penditure

&0(.05

30,24A

%8(40'

27,0(2

8(554

1,323

5('00

(,043

5(840

(,(4(

>

>

58(00&

(/,001

%436

''5(0'' &00(.85

2/,A7/ 1 ,(7

4.5(600 460(040

4 /,11( 4/3,(01

00(644 &.6(%'8

72, 7/ 341,(AA

&5(645 %5(88'

34,(07 3/,41A

%6(880 '5(..0

3A,A44 /,03(

8'(688 6&(&'.

1/,/23 1,7//

&(0%.(400 8..(85'

A(7, 0A 7(4,A(0

%43.

%438

"nter Bseg ent pricing "ransactions amon0 the +usiness se0ments are recor$e$ at arm?s len0th 'rices usin0 a$missi+le valuation metho$s =

%430

"here %as no ma9or customer of the 8rou' %hich forme$ 3 0 'er cent or more of the 8rou'?s revenue =

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&5&

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 %53 %53& )econciliations of reporta/le seg ent revenues( cost of sales( assets and lia/ilities 2urnover "otal turnover for re'orta+le se0ments > note 24 Elimination of inter>se0ment turnover Elimination of inter>se0ment turnover from su+si$iary "otal turnover %53% Cost of sales "otal cost of sales for re'orta+le se0ments > note 2/ Elimination of inter>se0ment 'urchases Elimination of inter>se0ment 'urchases from su+si$iary "otal cost of sales %53' Assets "otal assets for re'orta+le se0ments "a:ation recovera+le &an, $e'osits > note 2 2ue from *ssociates > note 22=2 5on0 term 6nvestments > note 34 "otal *ssets %534 ?ia/ilities "otal lia+ilities for re'orta+le se0ments *ccrue$ interest / return on unsecure$ loan > note 30=2 Inclaime$ $ivi$en$s > note 30 "otal 5ia+ilities 6('50('0. '05(&00 4(544 6(660(050 &8(&56(66% 545(05& %(0%.(000 .8(586 %(500 %&(.&0(600 %0(556(%4& 64&.(4%07 6056(6.%7 %8(&8%(&40 40(006(508 64&.(4%07 6056(6.%7 '0(5'%(506

200A

, (3,7(7 (27/,(7 ) (/7/,00 ) 2, AA,313

2 ,(22,241 (27/,(7 ) (/7/,00 ) 22,(/A,/72

37,31/,2A 4/0,240 , (0,000 10,420 2,(00 23,07A,4(

/,13 ,/1A 2AA,/47 4,(41 7,337,114

&5%

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%63

Cost of #ales
Polyester %0&0 200A
)aw and pac-ing aterials consu ed !'enin0 stoc, )urchases 6nter >se0ment !thers 6&%('50 > &'(6.4(6'0 &'(6.4(6'0 &4(%86(080 Closin0 stoc, > note 3 1 4a% material consume$ Salaries , %a0es an$ +enefits Stores an$ s'ares consume$ Conversion fee 'ai$ to contract manufacturers !il, 0as an$ electricity 4ent, rates an$ ta:es 6nsurance 4e'airs an$ maintenance 2e'reciation an$ amortisation > note 3 2 =( & 3 =3 E:cise $uty "echnical fees 4oyalty 8eneral e:'enses > note 2 / =2 !'enin0 stoc, of %or, >in >'rocess Closin0 stoc, of %or, >in >'rocess > note 3 1 Cost of goods anufactured !'enin0 stoc, of finishe$ 0oo$s #inishe$ 0oo$s 'urchase$ 686.(6&%7 &'(4&0('68 ''6(060 &&8(.%' > &('04(0.5 &(%'4 &.(.%% &(6.0 '&0(06' > > > &06(805 54(&6' (32,010 > 30,2/ ,1(2 30,2/ ,1(2 30,77(,A 2 (/32, (0) 30,3/ ,(12 2,34/ A0,30A > 143,024 14/ 3(,4A7 A(0 20,(1( > > > A2,341 301,1// .4(4'6 > &(8..(6%& &(8..(6%& &(05%(05. 6%0'(0.57 &(.48(08% 540(0&6 &&0(50' > &(06%(0%. &('.0 &6(%'6 605 455(54% > > > 8'(6%. > 70,A17 > 3,2(3,1(4 3,2(3,1(4 3,/22,143 (74,4 /) 3,(41,40( 4AA,A(2 334,/7A > 3,40/,71( /(( 32,7(( 4 42 ,233 > > > /4,2/1 > %85('68 4&.(4%0 %(480(0%4 %(006(444 '(&0&(8&% 6%50(05&7 %(0'&(86& 06('&% '(.04 > %8(85& &5(80' %.(840 &5(585 .5(%05 > %'(%.0 > 6.(6'. &5(600 24,010 27/,(7 2, 21,2(( 2,/04,121 2,A21,A01 (21(, /1) 2,/4 ,(40 13,2 4 4,47/ > 21,2 ( /,230 2/,(31 31,3A0 /0,10 > 3A,27A > (7, 7 3A,1(3 &46(480 > 0.'(%&. 0.'(%&. &(&&0(.06 6%8%(0%&7 8'.(685 '(0.8 > %0&('68 > > % 0 4%8 > &(8&5 %(0.6 400 &&(8&& 33 /A4 > 3,44( 3,001 4(2 (,024 333,023 > 77/,70A 77/,70A 117,7 0 (34/,41A) 743,243 ,0 7 > 31/,1AA > > &00(&&4 > 0'0(&55 0'0(&55 &(0'0(%60 685(0.07 045(&00 '0(%&& '(5&0 4('4& .(5%' 8(6&% 0.' '(%4% &5(08. > 5(.50 %4(86% &0(065 &(655 304, 4 > 140,470 140,470 A44,104 (300,334) 144,/A0 7,17A 2,103 4,43/ 1,321 A,1(7 00 ,374 3 ,11/ > ,030 24,470 30,4 3 4A/ 8(8%0 > '5.(%65 '5.(%65 '66(085 6'0(''57 ''5(.50 &4(456 %6(.0. > %%5('&6 8'% 054 &%8 8'(688 8(&%4 > > 0&6 > 3 ,74 > 1/,2/1 1/,2/1 300,033 (1,120) A3,3A3 34,7/7 3(,2A > 273,AAA 3,0 / 3,(31 3(3 1/,/23 (,1(4 > > 4,A10 > &(%%.(5.. 4&.(4%0 %0('0&(0&% %0(.&0(''% %&(046(000 6&(.%8(0647 %0(%&.(045 &(0%0(&4% %.%(%'. %05(.00 '(6&8(60% %.(050 6'(.'6 %&('%0 040(0&' 8(&%4 '0(8'5 %6(0'8 %68(6&0 8'(%%0 3,4 /,24( 27/,(7 3(,(47,401 3(,12 ,A13 37,2/0,22/ (3,227,(77) 3/,0 2,/4A A/A,03( 227, (1 3A3, 3( 2,((/,373 31,/04 (/,(A3 22,(3A A0(,100 (,1(4 2 ,7 4 2(,471 227,A32 3 4,2 7

#oda As5 %0&0 200A

%0&0

Paints

200A

?ife #ciences %0&0 200A

C5e icals %0&0 200A

,t5ersBPowerGen %0&0 200A

%0&0

Group

200A

6%4('887 &5(.45(404 500(%'6 0&('&6 &6('45(056

((4,3/ ) 33,A33,(A0 A2,244 > 32, 0 ,1 4

> 4(0%8(00. %0.(554 > 5(&'5(65&

> 4,070,7( ,340 > 4,30 ,1A

6&0(0.67 '(%00(.0& %46(586 64(800 '(60%(&..

(3(,/00) 2,A(0,30A 223,1(2 1(,700 ,2(7,//3

6&%(4647 &(046(%08 8'.(505 &(58'(&88 '(466(00&

(33,133) A21,00 47/,314 3,12/,237 ,2 0,404

6.%57 &(0.0(%05 &4&(658 &(&0'(%'5 %(405(008

(3,/(() A/3,11 273,7A7 112,2/2 2,33(,A42

> 606(8.& > > 606(8.&

> 4A ,430 > > 4A ,430

648(55'7 %6(..5(8'6 &(04%(5'0 %(0'%(5'0 '&(650(0&4

(1 ,22A) 23, 34,001 3, A(,237 2,7A4,37A 2(,(0 ,404

Closin0 stoc, of finishe$ 0oo$s > note 3 1 )rovision for o+solete stoc,s > note 2 1

6.%5(0%.7

((0A,2 /)

658(0&%7

(207,((4)

6%46(54.7

(24/,(1/)

6..4(8'07

(1 7,(0()

6%''(8'87

(343,/(1)

>

>

6%(0'0(&6'7

(3,A42,( A)

> &5(6%0(0%0

> 33,7A4,(A1

6%(6&57 5(0.4(&%4 ,1A/,

> A

6%&(0607 '('''(66&

(24,

2)

6&0(6.67 %(68&('86

(A,21() 2, 1 ,/34

6%0(%507 %(&5&(0&0

((,000) 3,A/A,214

> 606(8.&

> 4A ,430

655(5&07 %0(556(%4&

( 1,/37) 2 ,(22,241

2,A1/,74

%63&

#taff retire ent /enefits Salaries , %a0es an$ +enefits inclu$e 4s 3 / =4 4 2 million ( 2 0 0 A G 4s 3 A =0 ( ( million ) in res'ect of staff retirement +enefits =

%63%

#ervice C5arges fro

su/sidiary

"his inclu$es amount 4s 3 =7 4 0 million char0e$ +y the Com'any for certain a$ministrative service char0es in accor$ance %ith the service level a0reement %hich have +een eliminate$ from the total=

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&5'

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%.3

#elling and Distri/ution *!penses

Polyester %0&0 200A
Salaries an$ +enefits 4e'airs an$ maintenance *$vertisin0 an$ 'u+licity 4ent, rates an$ ta:es 6nsurance 5i0htin0 , heatin0 an$ coolin0 2e'reciation an$ amortisation > note 3 2 =( & 3 =3 !ut%ar$ frei0ht an$ han$lin0 "ravellin0 e:'enses )osta0e , tele0ram , tele'hone an$ tele: 8eneral e:'enses

#oda As5 %0&0 200A

%0&0

Paints

200A

?ife #ciences %0&0 200A

C5e icals %0&0 200A

,t5ersBPowerGen %0&0 200A

Group %0&0 200A

46(4.' &4 &(&6' > > &5

40,(A3 322 3(,410 > > 37

%&(.50 &(0.0 &0(048 &(%8% &(0%8 &(088

24,(13 3,0/ 1A/ A22 4 4 17

%%0(8.0 '(0'' %5'(&%& &0('%' > 6(68'

3A(,/7/ ,( 7 2/2,31A 2 ,4A3 > 4,107

&0.(44% %(&.0 86(040 5(80. 6(5%% %(%0.

314, 44 3,1/2 /4,(3 4,404 ,1// 3,A/A

6&(606 &('8& 8&. .'0 '(5'0 %(&64

/ ,( 3 3,0 A17 3,312 , 40 3,A10

> > > > > >

> > > > > >

548(%40 8(586 '5%(008 %.(%4& &&(080 &%(%4.

(01,72 7,/37 44,0/( 2A,AAA 7,/40 A,/4/

> 0(6%6 .(0%% 5%0 .(.0& .%(54'

(A 7,071 ,20/ 42 1,2/0 7(,2 /

%.. &40(005 %(.0' &('%5 &%(580 %0'(&.'

27 /A,A72 3,112 774 30,4AA 332,22

> &.0(045 '0(08% .(046 44(06' .65(0.5 372,A(

>

&&(00' '5('%0 68(0'% &0(.%8 66(568 40'(0'6

33,3A( 22, A( / ,407 A,7(A (/,A1/ 424,700

%(&5& '&(5'8 &%(&.& '(688 %&(0&. &40(80%

3,714 21,01A 33,(/7 ,447 3(,A/3 3 2,A03

> > > > > >

> > > > > >

&'(5%& 405(5'' &%0(0&0 %'('&6 &5&(0'8 &(6.4(.&0

3 , /( 00,417 330,/(0 20,204 337,771 3,470,374

0,(11 (,103 2/,072 72(,334

%.3&

#taff retire ent /enefits Salaries , %a0es an$ +enefits inclu$e 4s 13=(/A million (200A G 4s / 7 =( A million ) in res'ect of staff retirement +enefits =

%83

Ad inistration and General *!penses

Salaries an$ +enefits 4e'airs an$ maintenance *$vertisin0 an$ 'u+licity 4ent, rates an$ ta:es 6nsurance 5i0htin0 , heatin0 an$ coolin0 2e'reciation an$ amortisation > note 3 2 =( & 3 =3 )rovision for $ou+tful $e+ts > tra$e > note 4 0 =4 > others > note 2 2 = & 4 0 =4 )rovision for o+solete stoc, > .ote 3 1 =3 )rovision for o+solete s'ares > .ote 3 7 =3 "ravellin0 e:'enses )osta0e , tele0ram , tele'hone an$ tele: 8eneral e:'enses note 2 1 =2 &%0(%.& %(086 &(8'. %(6.5 .'5 '(6'. 3 4,( 3 2,73( 2,1(( 2,((3 ((2 ,372 &0&(64. '(0'0 '(68& %(054 &(858 6(%00 3A ,214 ,471 /,03 2,177 3,4(4 (,27 &68(5.0 0(&4. &('.% 5(060 60% 4(655 3 4,413 1,121 3,107 /, 02 7,4 1 ,(31 85(080 &(8.% .88 640 '(85. 4(664 A ,/72 3, (2 3,3 4 (4 2,3 7 ,(A0 8&(0'4 &(00' 866 680 4%5 &(4&6 72,47A 710 3,4(2 (17 3/ 3,077 > > > > > > > > > > > > 65.(4&& &8(0'8 8(544 &%(0&8 .(56. %0(5.% /21,447 37,3( 3 ,2/3 32,1/0 33,1A7 3/,/ 0

&5(0.0

/,

&0(.8&

3 , 47

&5(4'0

33,(7

4(&%4

2,/31

0(65&

4,274

>

>

64(065

1,344

> > > 50(&00 &0(&'8 %('%0 '.(4&' %65(&0&

(,/30 > > 40,000 /,4A3 3, 7

> '8& %(6&5 > 0(65% '(048 44(06& %00(.08

> > > > 1,342 2,34A ((,104 2A3,123

&'8(%6% %(500 %&(060 5(000 &%(.'% 5(8&4 5.(65% 448(8.'

/A,040 > 24, 2 > 34,/2/ 1,AAA A3,00( 13,A4A

4.. 6%' &0(6.6 > 6(&0% %(80& %5(440 &48(%4% >

40& > %0(%50 > 6(.0& &(6.8 %0(806 &45(00&

/43 > (,000 > (, 4A 3,341 4,A7 321,07/

> > > > > > '(0&0 '(0&0

> > > > > > (4/ (4/

&'0(&40 '(504 55(5&0 64(&00 45(505 &6(660 &88(%4& &('0&(..5

7(,2A1 > 1,/37 40,000 40,2 A 3/,34A 22A,/7( 3,371, 70

A,21( > (,/ 3 2,(3/ 34,/22 3 7,307

2,A/( 2 A,333

%83&

#taff retire ent /enefits Salaries , %a0es an$ +enefits inclu$e 4s 3 4 1 =1 3 million (200A G 4s 3 2 =7 7 2 million ) in res'ect of staff retirement +enefits =

%83%

#ervice C5arges fro

su/sidiary

"his inclu$es 4s 0 =2 4 0 million char0e$ +y the Com'any for certain a$ministrative service char0es in accor$ance %ith the service level a0reement %hich have +een eliminate$ from the total=

&54

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 %03 =inancial C5arges Mar,>u' on short>term financin0 6nterest on %or,ers? 'rofit 'artici'ation fun$ > note 30= 2iscountin0 char0es on receiva+les E:chan0e losses 6nterest on security $e'osits an$ others &(5'6 6(048 04(040 50(564 %(4%8 &65(4&6

200A

3A,A/( 2,30( 12, 1 74,4(4 /,1 ( 31(,742

'03

,t5er operating c5arges *u$itors? remuneration > note 0=3 2onations > note 0=2 ;or,ers? 'rofit 'artici'ation fun$ > note 30= ;or,ers? %elfare fun$ 8(5%5 %%(%.. &00('0% ..(&'0 '0.(%4' /,7(0 3/,4/4 3/2, 2/ /2,1A/ 241,4 /

'03&

AuditorsM re uneration *u$it an$ 8rou' re'ortin0 fee Half yearly revie% an$ other certifications !ut of 'oc,et e:'enses 6(060 &(8&5 650 8(5%5 (,010 3,03( /(( /,7(0

'03%

2onations inclu$e 4s 3(=7A( million (200AG 4s 3 =A7 million) to 6C6 )a,istan #oun$ation (Hea$ office, @arachi)= Mr= ;a<ar * Mali,, Chief E:ecutiveS Mr= *li *srar *0a an$ Mr= #ero- 4i-vi, 2irectors of the Com'any an$ Mr= Suhail *slam @han an$ Ms= Seemi Saa$, E:ecutives of the Com'any are amon0st the "rustees of the #oun$ation= ,t5er operating inco e "nco e fro related parties > 2,/(/

'&3

Service fees from relate$ 'arty > note 3=3 )eturn fro financial assets

)rofit on short>term an$ call $e'osits "nco e fro nonBfinancial assets

%8%(006

3/7,AA(

Scra' sales 8ain on $is'osal of 'ro'erty, 'lant an$ e<ui'ment ,t5ers )rovisions an$ accruals no lon0er re<uire$ %ritten +ac, 6ncome on technical assistance 6ncome on sale of *$hesive to Hen,el Sun$ries

40(54' &0(%&&

(7,2(A (,2A

&6(5%. > > 5.(4&0 4&6(606

304,A/0 244 34,//2 44,7/1 A7,1 7

'&3&

"his re'resents amount char0e$ +y the 8rou' for certain mana0ement an$ other services ren$ere$ to its relate$ 'arty 5otte )a,istan )"* 5imite$, u'to Se'tem+er 200A, in accor$ance %ith the Service *0reement +ase$ on commercial terms +et%een the Com'anies=

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&55

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 '%3 2a!ation Current )rior years "otal current ta: char0e 2eferre$ > note 1 .et ta: char0e$ > note 2=3 &(45.(540 > &(45.(540 6&54(8507 &('0%(600

200A

4A0,13 (37,4 A) 47 , 74 ((4, A4 3,027,7/1

'%3&

2a! reconciliation )rofit +efore ta: "a: O (C )rior years? ta: char0e )ermanent $ifference "a: im'act on 'rofit of su+si$iary > note 2=2 "a: im'act on income un$er #"4 of the current year !thers .et ta: char0e$ '(..0(.0' &('%%(0%8 > > 6&6(80.7 %(00% 66('''7 &('0%(600 ,012,0A1 3,071,7 4 (37,4 A) (,7/2 ( , (7) (40,732) 4,710 3,027,7/1

'%3% ''3

"he turnover ta: at the rate of 0=(C of turnover has +een %aive$ un$er secon$ sche$ule of the income ta: or$inance 2003= *arnings per #5are B 1asic and diluted )rofit after ta:ation for the year %(4..(&0' 2,0(4, 0

;ei0hte$ avera0e num+er of or$inary shares in issue $urin0 the year Earnin0s 'er share '43 )e uneration of Directors and *!ecutives

$u /er of s5ares &'8(80%('00 3 1,102, 00 &.385 )upees 34=10

"he a00re0ate amounts char0e$ in the financial statements for the remuneration, inclu$in0 all +enefits, to the Chairman, Chief E:ecutive, 2irectors an$ E:ecutives of the 8rou' %ere as follo%sG C5air an %0&0 Mana0erial remuneration 4etirement +enefits 8rou' insurance 4ent an$ house maintenance Itilities Me$ical e:'enses &(%'0 > > > > > &(%'0 .um+er of 'ersons & 200A 3,3/2 > > > > > 3,3/2 3 C5ief *!ecutive %0&0 %5('6' 6('6% 4% 6(0%% ..5 0& '8(655 & 200A 23,3 ( (, 23 42 (,2/1 /47 20 2,/3/ 3 Directors %0&0 '4(%00 .(555 84 > > %%& 4%(060 4 200A ,1/ 7, 1 32/ > > 43A *!ecutives %0&0 200A %0&0 2otal 200A

50'('48 431,134 564(&50 474,A74 &45(%%6 307,A13 &50(&4' 320,/1( 5(08' '6(80% &0(66& 4,(32 0, 30 3(,430 5(%00 '.(5.. &0(0.' 4,/10 0,A(7 3/,0 2 &48(8&0 322, /1 &54(84& 327,/ /

43,7A3 858(0'0 /AA, A( 040(80' 774,A/4 ( '8% 21 '88 (

&56

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

'43&

6n a$$ition to this, an amount of 4s 221=A million (200AG 4s 20A=1 million) on account of varia+le 'ay, to em'loyees, has +een reco0nise$ in the current year= "his amount is 'aya+le in 2033 after verification of achievements a0ainst tar0et= #urther, a s'ecial +onus of 4s 32=0 million (200AG 4s 21=A million) 'aya+le to certain em'loyees has +een reco0nise$ in the financial statements %hich is 'aya+le in 2033= !ut of varia+le 'ay reco0nise$ for 200A an$ 2001 follo%in0 'ayments %ere ma$eG Paid in %0&0 relating to %000 &'(&6' ''(5%0 &%5(444 0(&0% &8&('%8 )ai$ in 200A relatin0 to 2001 33,7/( 33,400 A2,7(2 7,3 3 3( ,041

Chief E:ecutive 2irectors E:ecutives !ther em'loyees '43% '43'

"he 2irectors an$ certain E:ecutives are 'rovi$e$ %ith free use of Com'any cars in accor$ance %ith their entitlement= "he Chief E:ecutive is 'rovi$e$ %ith Com'any maintaine$ furnishe$ accommo$ation an$ free use of Com'any car= *00re0ate amount char0e$ in the financial statements for remuneration to three .on>e:ecutive 2irectors (not inclu$e$ a+ove) %as 4s =22( million (200AG 4s =221 million)= "his inclu$es fees 'ai$ to $irectors amountin0 to 4s= 0=220 million (200AG 4s= 0=24A million) for atten$in0 +oar$ an$ other meetin0s %hich is not inclu$e$ a+ove= "he a+ove +alances inclu$e an amount of 4s 311=334 million (200AG 4s 343= (A million) on account of remuneration of ,ey mana0ement 'ersonnel out of %hich 4s 2/=274 million (200AG 4s 24= (/ million) relates to 'ost em'loyment +enefits= 2ransactions wit5 )elated Parties "he relate$ 'arties com'rise 'arent com'any (6C6 !micron &=V=), ultimate 'arent com'any (*,-o .o+el .=V=), relate$ 0rou' com'anies, local associate$ com'any, $irectors of the Com'any, com'anies %here $irectors also hol$ $irectorshi', ,ey em'loyees (note 4) an$ staff retirement fun$s (note 7)= 2etails of transactions %ith relate$ 'arties, other than those %hich have +een s'ecifically $isclose$ else%here in these consoli$ate$ financial statements are as follo%sG %0&0 Associated co panies )urchase of 0oo$s, materials an$ services )rovision of services an$ other recei'ts Sale of 0oo$s an$ materials 2ivi$en$s 2onations &&8(48. 4(600 &'&(000 &(05%(%0& &5(.05 (,7(0, ( /,440 32/,42A 71A,231 3 ,A70 200A

'434

'53

'63

Plant Capacity and Annual Production > in metric tones e:ce't )aints %hich is in thousan$s of liters an$ )o%er8en %hich is in thousan$ of @ilo%attsG %0&0 Annual $a e Plate Capacity )olyester So$a *sh > note /=3 )aints > note /=2 Chemicals > note /=2 So$ium &icar+onate )o%er8en > note /= &%%(000 '50(000 > > %0(000 %%&(0.8 Production *nnual .ame )late Ca'acity 322,000 (0,000 > > 20,000 223,A71 200A )ro$uction

&%0(445 %.8(650 '4(.48 0(08% %'(.00 6.('4'

32 ,/42 2/A,(00 ,743 1,477 22,(10 / ,7/(

'63& '63% '63'

)ro$uction %as +elo% name 'late ca'acity $ue to 0as curtailment= "he ca'acity of )aints an$ Chemicals is in$etermina+le +ecause these are multi>'ro$uct 'lants= Electricity +y )o%er8en is 'ro$uce$ as 'er $eman$=

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&5.

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

'.3

=air 9alue of =inancial Assets and ?ia/ilities "he carryin0 amounts of the financial assets an$ financial lia+ilities a''ro:imate their fair values an$ is $etermine$ on the +asis of non o+serva+le mar,et $ata=

'83

="$A$C"A? )"#8 :A$AG*:*$2 "he 8rou'?s activities e:'ose it to a variety of financial ris,sG cre$it ris,, li<ui$ity ris, an$ mar,et ris, (inclu$in0 currency ris,, interest rate ris, an$ 'rice ris,)= "he 8rou'?s overall ris, mana0ement 'olicy focuses on the un're$icta+ility of financial mar,ets an$ see,s to minimi-e 'otential a$verse effects on the 8rou'?s financial 'erformance=

'83&

)is- :anage ent =ra ewor"he &oar$ of 2irectors has overall res'onsi+ility for esta+lishment an$ over si0ht of the 8rou'?s ris, mana0ement frame%or,= "he e:ecutives mana0ement team is res'onsi+le for $evelo'in0 an$ monitorin0 the 8rou'Fs ris, mana0ement 'olicies= "he team re0ularly meets an$ any chan0es an$ com'liance issues are re'orte$ to the &oar$ of 2irectors throu0h the au$it committee= 4is, mana0ement systems are revie%e$ re0ularly +y the e:ecutive mana0ement team to reflect chan0es in mar,et con$itions an$ the 8rou'Fs activities= "he 8rou', throu0h its trainin0 an$ mana0ement stan$ar$s an$ 'roce$ures, aims to $evelo' a $isci'line$ an$ constructive control environment in %hich all em'loyees un$erstan$ their roles an$ o+li0ations= "he au$it committee oversees com'liance +y mana0ement %ith the 8rou'Fs ris, mana0ement 'olicies an$ 'roce$ures, an$ revie%s the a$e<uacy of the ris, mana0ement frame%or, in relation to the ris,s face$ +y the 8rou'=

'03

:ar-et )isMar,et ris, is the ris, that the fair value or future cash flo%s of a financial instrument %ill fluctuate +ecause of chan0es in mar,et 'rices= Mar,et ris, com'rises of currency ris,, interest rate ris, an$ other 'rice ris,=

'03&

"nterest )ate )is6nterest rate ris, is the ris, that the fair values of future cash flo%s of a financial instrument %ill fluctuate +ecause of chan0es in mar,et interest rates= *t the re'ortin0 $ate the interest rate 'rofile of 8rou'?s interest>+earin0 financial instruments %ereG Carrying A ount %0&0 =i!ed rate instru ents #inancial assets > .ote 2 #inancial lia+ilities > .ote 30 %(0%.(000 680(.007 %(846('00 , (0,000 (73,AA ) ,271,007 200A

#ensitivity analysis for fi!ed rate instru ents "he 8rou' $oes not account for any fi:e$ rate financial assets an$ lia+ilities at fair value throu0h 'rofit an$ loss, therefore a chan0e in interest rates at the re'ortin0 $ate %oul$ not affect 'rofit an$ loss=

&58

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

'03%

=oreign currency ris#orei0n currency ris, is the ris, that the fair value or future cash flo%s of a financial instrument %ill fluctuate +ecause of chan0es in forei0n e:chan0e rates= #orei0n currency ris, arises mainly %here receiva+les an$ 'aya+les e:ist $ue to transactions entere$ in forei0n currencies= "he 8rou' is e:'ose$ to forei0n currency ris, on sales, 'urchases an$ +orro%in0s, %hich, are entere$ in a currency other than )a, 4u'ees= Ho%ever the for%ar$ forei0n e:chan0e contracts %ere not availa+le for im'orts in 2030 in accor$ance %ith State &an, of )a,istan instructions= #GD "ra$e $e+ts !ther receiva+les 2ue from *ssociate > note 22=2 Cash an$ +an, +alances "ra$e an$ other 'aya+les *ccrue$ interest / return on unsecure$ loan > note 30=2 2ue to *ssociates > note 30=3 Gross /alance s5eet e!posure > > > > > > > 3( 3( 6&57 *G), > 30,1(A > > 30,1(A 307,71A > (A,(10 3/7, /A 6&56(5&07 G#D %0&0 A,/43 37,//( 3 ( A1,227 32(,//1 3,2 (,A3/ 0(,30A 23,/07 3,(/2,/ 2 6&(4'6(0647 200A 33,//7 32 ,427 4,10( /2,217 202,31/ 3,/17,7(A 2AA,/47 4,774 3,AA2,310 (3,71A,AA4) > 33,132 71,(1/ > A0, A1 //2,2A4 > 3, 73 // ,//( 65.'(%6.7 > > > > > > > > > B G1P EPL

"ra$e $e+ts !ther receiva+les 2ue from *ssociate > note 22=2 Cash an$ +an, +alances "ra$e an$ other 'aya+les *ccrue$ interest / return on unsecure$ loan > note 30=2 2ue to *ssociates > note 30=3 8ross +alance sheet e:'osure

> > > > > 4,73A > 2/,30( 0,124 ( 0,124)

2,100 > > > 2,100 (7,/4/ > (, 40 /2,A1/ (/0,31/)

> > 10,420 > 10,420 (04,207 > 7,02A (33,2 / (4 0,13/)

> > > > > (,2A > > (,2A ((,2A )

Si0nificant e:chan0e rates a''lie$ $urin0 the year %ere as follo%sG Average rate for t5e year %0&0 200A )upees &&'300 853&8 &'&3.5 030. 6%355 33 =14 13=/A 327=1( 0=17 (/=(2 #pot rate as at Dece /er '& %0&0 200A )upees &&43'0 853.5 &'%3.% &305 6638. 323= 7 14=24 3 7=13 0=A3 /0=0/

)upees per EI4! IS2 8&) L)M S82

#ensitivity analysis Every 3C increase or $ecrease in e:chan0e rate %ith all other varia+les hel$ constant %ill increase or $ecrease 'rofit after ta: for the year +y 4s 23=7 million (200AG 4s 2 =2 million)= 403 Credit )isCre$it ris, re'resents the accountin0 loss that %oul$ +e reco0nise$ at the re'ortin0 $ate if counter>'arties faile$ com'letely to 'erform as contracte$= "he 8rou' $oes not have si0nificant e:'osure to any in$ivi$ual counter'arty= "o re$uce e:'osure to cre$it ris, the 8rou' has $evelo'e$ a formal a''roval 'rocess %here+y cre$it limits are a''lie$ to its customers= "he mana0ement also continuously monitors the cre$it e:'osure to%ar$s the customers an$ ma,es 'rovision a0ainst those +alances consi$ere$ $ou+tful of recovery= "o miti0ate the ris,, the 8rou' has a system of assi0nin0 cre$it limits to its customers +ase$ on an e:tensive evaluation +ase$ on customer 'rofile an$ 'ayment history= !utstan$in0 customer receiva+les are re0ularly monitore$= &usiness %ith customers is also secure$, %here 'ossi+le, +y %ay of inlan$ letters of cre$it, cash security $e'osit an$ +an, 0uarantees=
"C" Pa-istan ?i ited *nnual 4e'ort 2030 &50

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

%0&0 "he 8rou'?s ma:imum e:'osure to cre$it ris, at the re'ortin0 $ate is as follo%sG 403& =inancial Assets 5on0>"erm 6nvestment > note 34 5on0 term loans > note 3( 5on0 term $e'osits > note 3/ "ra$e $e+ts > note 3A 5oans an$ a$vances > note 20 "ra$e $e'osits > note 23 !ther receiva+les > note 22 &an, +alances > note 2 %(500 &48(%65 %%(8.' 8&8('5& %86(655 %%(45& ''%(%66 4(.%5('0. 6('58(668

200A

2,(00 3 3,4 0 23,233 A44,17A 324,A40 A,7/1 4(1,//A 4,( (,A1/ /,22A, 1

"he 8rou' has 'lace$ its fun$s %ith +an,s %hich are rate$ *>3 +y Stan$ar$ & )oor?s an$ )>3 +y Moo$y?s= 403% =inancial Assets > Secure$ > Insecure$ 406(0.' 5(86&(605 6('58(668 (4/, 40 (,/1 ,04 /,22A, 1

403'

"he a0ein0 of +an, +alances, tra$e receiva+les an$ loans an$ a$vances at the re'ortin0 $ate is as follo%sG .ot 'ast $ue Past due /ut not i paired; .ot more than three months Past due and " paired; more than three months an$ not more than si: months more than si: months an$ not more than nine months more than nine months an$ not more than one year more than one year 5(60%(.'6 &%%(&'& '0(80' &%('%. %.(&65 %00(&.& 40&(68. '4'(400 &0(6%0 '54(&&0 5(8'0('&' (,2(A,2(2 213, 37 / ,002 2(, (2 4 , 71 23A,2(( / 2, 04 277,/ 3 1,320 21(,7(3 (,/0(,10(

5essG )rovision forG > 2ou+tful $e+ts > 2ou+tful loans an$ a$vances

4034

Movement of 'rovision for tra$e $e+ts an$ loans an$ a$vances 2rade De/ts !'enin0 *$$itional 'rovision > note 21 )rovision utilise$ a0ainst %rite offs )rovision no lon0er re<uire$ %..(6'& &'0(&40 65.(4007 6&5(8.%7 '4'(400 ?oans and Advances 8(&%0 %(500 B B &0(6%0 2otal %85(.5& &4&(640 65.(4007 6&5(8.%7 '54(&&0 203,41 7(,2A1 A,/4/ (/7/) 21(,7(3

&60

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

*mounts in 4s F000

%0&0 4035 "he ma:imum e:'osure to cre$it ris, for 'ast $ue an$ im'aire$ at the re'ortin0 $ate +y ty'e of counter'arty %asG ;holesale customers 4etail customers En$>user customers 5essG )rovision forG > 2ou+tful $e+ts > 2ou+tful loans an$ a$vances %0%(884 &00(60& &.0(&&% 40&(68. '4'(400 &0(6%0 '54(&&0 &'.(5..

200A

3/4,212 214,401 31 ,/34 / 2, 04 277,/ 3 1,320 21(,7(3 4/,((

40353& "he recommen$e$ a''roach for 'rovision is to assess the to' layer (coverin0 (0C) of tra$e receiva+les on an in$ivi$ual +asis an$ a''ly a $ynamic a''roach to the remain$er of receiva+les= "he 'roce$ure intro$uces a 8rou'>stan$ar$ for $ynamic 'rovisionin0G H )rovi$e im'airment loss for (0C of the outstan$in0 receiva+le %hen over$ue more than A0 $ays, an$ H )rovi$e im'airment loss for 300C %hen over$ue more than 320 $ays= 4036 Concentration )is"he sector %ise analysis of receiva+les, com'risin0 tra$e $e+ts, loans an$ a$vances an$ +an, +alances is 0iven +elo%G "e:tile 8lass Ceramics )a'er an$ &oar$ Chemicals )harmaceuticals Construction "rans'ort )aints &an, !thers 5essG )rovision forG > 2ou+tful $e+ts > 2ou+tful loans an$ a$vances 0%(0.' &4(4&5 B %4(64& %40(.'& '6(880 &%(.0& '6(0.6 6%&(046 4(.%5('0. '.0(65' 6(&84(4%' '4'(400 &0(6%0 '54(&&0 5(8'0('&' 237,01( 22,/7A 2,A1( 31,3 7 2 2,/24 31,7AA 3,A72 /0,2/4 (3/, 01 4,( (,A1/ 2 4,737 (,1A3,((/ 277,/ 3 1,320 21(,7(3 (,/0(,10(

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&6&

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

*mounts in 4s F000

4&3

?i+uidity )is5i<ui$ity 4is, is the ris, that an entity %ill encounter $ifficulty in meetin0 o+li0ations associate$ %ith financial lia+ilities= )ru$ent li<ui$ity ris, mana0ement im'lies maintainin0 sufficient cash an$ mar,eta+le securities an$ the availa+ility of fun$in0 throu0h an a$e<uate amount of committe$ cre$it facilities= 8rou'?s treasury aims at maintainin0 fle:i+ility in fun$in0 +y ,ee'in0 committe$ cre$it lines availa+le= "he ta+le +elo% analyse the 8rou'?s financial lia+ilities into relevant maturity 0rou'in0s +ase$ on the remainin0 'erio$ at the +alance sheet to the maturity $ate= Carrying a ount =inancial lia/ilities "ra$e cre$itors > note 30 &ills 'aya+le Mar,>u' accrue$ on short term financin0 *ccrue$ interest / return on unsecure$ loan > note 30=2 *ccrue$ e:'enses "echnical service fee / 4oyalty 2istri+utors? security $e'osits > 'aya+le on termination of $istri+utorshi' > note 30=4 Contractors? earnest / retention money Inclaime$ $ivi$en$s )aya+le for ca'ital e:'en$iture !thers 3,012,07( 3,A11,4// 3,71/ 0(,30A 3,3/A,70( 0, 3/ 10,700 33,/( 4,(44 303,((3 307,/30 4(88'(5&5 3,012,07( 3,A11,4// 3,71/ 0(,30A 3,3/A,70( 0, 3/ 1A,A13 33,/( 4,(44 303,((3 307,/30 4(80%(.06 (3,012,07() (3,A11,4//) (3,71/) ( 0(,30A) (3,3/A,70() ( 0, 3/) (1A,A13) (33,/( ) (4,(44) (303,((3) (307,/30) 64(80%(.067 Contractual cas5 flows %0&0 ?ess t5an one year

6t is not e:'ecte$ that the cash flo%s inclu$e$ in the maturity analysis coul$ occur si0nificantly earlier or at si0nificantly $ifferent amount= 200A =inancial lia/ilities "ra$e cre$itors > note 30 &ills 'aya+le Mar,>u' accrue$ on short term financin0 *ccrue$ interest / return on unsecure$ loan > note 30=2 *ccrue$ e:'enses "echnical service fee / 4oyalty 2istri+utors? security $e'osits > 'aya+le on termination of $istri+utorshi' > note 30=4 Contractors? earnest / retention money Inclaime$ $ivi$en$s )aya+le for ca'ital e:'en$iture !thers A77,/00 2,270,1(( 2,732 2AA,/47 3,377, 42 (,A7( 73,AA 30,30 4,(41 3 A,( 2 3(3,713 (,342,011 A77,/00 2,270,1(( 2,732 2AA,/47 3,377, 42 (,A7( 77, A2 30,30 4,(41 3 A,( 2 3(3,713 (,347,417 (A77,/00) (2,270,1(() (2,732) (2AA,/47) (3,377, 42) ( (,A7() (77, A2) (30,30 ) (4,(41) (3 A,( 2) (3(3,713) ((,347,417)

&6%

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

4%3

Capital )is- :anage ent "he 8rou'?s o+9ective %hen mana0in0 ca'ital is to safe 0uar$ the 8rou'Fs a+ility to continue as a 0oin0 concern so that it can continue to 'rovi$e returns for sharehol$ers an$ +enefits for other sta,ehol$ersS an$ to maintain a stron0 ca'ital +ase to su''ort the sustaine$ $evelo'ment of its +usinesses= "he 8rou' mana0es its ca'ital structure +y monitorin0 return on net assets an$ ma,es a$9ustments to it in the li0ht of chan0es in economic con$itions= 6n or$er to maintain or a$9ust the ca'ital structure, the 8rou' may a$9ust the amount of $ivi$en$ 'ai$ to sharehol$ers or issue ne% shares=

4'3

Accounting *sti ates and Eudge ents "nco e 2a!es "he 8rou' ta,es into account the current income ta: la% an$ $ecisions ta,en +y a''ellate authorities= 6nstances %here the 8rou'?s vie% $iffers from the vie% ta,en +y the income ta: $e'artment at the assessment sta0e an$ %here the 8rou' consi$ers that its vie% on items of material nature is in accor$ance %ith la%, the amounts are sho%n as contin0ent lia+ilities (unless there is remote 'ossi+ility of transfer of +enefits)= "he 6ncome "a: *''ellate "ri+unal earlier set asi$e the assessment for the assessment year 3AA1>AA on the issues of $ate of commissionin0 of )"* 'lant & $e'reciation thereon, restriction of cost of ca'italisation of )"* 'lant an$ a$$ition to income in res'ect of trial 'ro$uction stoc,s= "he re>assessment %as finalise$ +y the $e'artment $urin0 the year 0ivin0 rise to an a$$itional ta: $eman$= "he Com'any has file$ an a''eal a0ainst the sai$ or$er +efore the C6"(*''eals), hearin0 of a''eal has +een com'lete$ an$ the or$er is a%aite$= "he ta: $e'artment reo'ene$ the income ta: assessment for the assessment year 2003>2002 on the 0roun$ that $emer0er of )"* +usiness from 6C6 )a,istan 5t$= %as effective from the com'letion $ate i=e= *u0ust /, 2003= "his %as challen0e$ +y the 8rou' in the Hi0h Court %hich u'hel$ the 8rou'?s contention that the $e'artment $i$ not have the ri0ht to reo'en this finalise$ assessment= "he $e'artment has ho%ever file$ an a''eal in the Su'reme Court a0ainst the Hi0h CourtFs or$er= "he a''eal %as $ismisse$ +y the Su'reme Court= #or the assessment year 2002>200 on recei't of notice un$er section /2 of the 6ncome "a: !r$inance, 3A7A, the Com'any ha$ file$ a %rit 'etition in the Su'reme Court challen0in0 the ta: $e'artmentFs notice that the effective $ate of )"*Fs $emer0er %as *u0ust /, 2003 rather than the effective $ate 0iven in the Scheme of *rran0ement as !cto+er 3, 2000= "hat notice ha$ raise$ certain issues relatin0 to vestin0 of )"* assets +y the Com'any %hich has +een settle$ in the assessment year 2003>2002= ;hile this case is 'en$in0 for a$9u$ication, revie% of the Su'reme Court?s $ecision relatin0 to assessment year 2003>2002 it is unli,ely that the $e'artment can ta,e an a$verse action= ;hilst amen$in0 the assessment for the "a: Mear 200 an$ 2004, ta: $e'artment has ta,en certain action in the or$er, consi$ere$ +y the $e'artment as J'rotective assessmentK on the matter of una+sor+e$ $e'reciation carrie$ for%ar$= 6t is the 8rou'?s contention that such an action is un%arrante$= *n a''eal +efore the C6" (*''eals), on the matter has +een file$ %hich is 'en$in0= "he very +asis of such an action have also +een challen0e$ +efore the Hi0h Court of Sin$h %hich are 'en$in0 for hearin0= ;hile this case is 'en$in0 for a$9u$ication, revie% of the Su'reme Court?s $ecision relatin0 to assessment year 2003>2002 it is unli,ely that the $e'artment can ta,e an a$verse action= .otice un$er section 223 of the 6ncome "a: !r$inance 2003 for rectification of $eeme$ assessment or$er for the "a: Mear 200( has +een issue$ to $isallo% una+sor+e$ $e'reciation carrie$ for%ar$= * %rit 'etition a0ainst the sai$ notice has +een file$ %ith the Hi0h Court of Sin$h %hich is 'en$in0 for hearin0= ;hile this case is 'en$in0 for a$9u$ication, in vie% of the Su'reme Court?s $ecision relatin0 to assessment year 2003>2002 it is unli,ely that the $e'artment can ta,e an a$verse action= Pension and Gratuity Certain actuarial assum'tions have +een a$o'te$ as $isclose$ in note 7 to the financial statements for valuation of 'resent value of $efine$ +enefit o+li0ations an$ fair value of 'lan assets= *ny chan0es in these assum'tions in future years mi0ht affect unreco0nise$ 0ains an$ losses in those years= Property( Plant and *+uip ent "he estimates for revalue$ amounts, if any, of $ifferent classes of 'ro'erty, 'lant an$ e<ui'ment, are +ase$ on valuation 'erforme$ +y e:ternal 'rofessional valuers an$ recommen$ation of technical teams of the 8rou'= "he sai$ recommen$ations also inclu$e estimates %ith res'ect to resi$ual values an$ $e'recia+le lives= #urther, the 8rou' revie%s the value of the assets for 'ossi+le im'airment on an annual +asis= "he future cash flo%s use$ in the im'airment testin0 of assets is +ase$ on mana0ement?s +est estimates %hich may chan0e in future 'erio$s= *ny chan0e in the estimates in future years mi0ht affect the carryin0 amounts of the res'ective items of 'ro'erty, 'lant an$ e<ui'ments %ith a corres'on$in0 affect on the $e'reciation char0e an$ im'airment=

443

#tandards or "nterpretations not yet effective "he follo%in0 stan$ar$s, amen$ments an$ inter'retations of a''rove$ accountin0 stan$ar$s are effective for accountin0 'erio$s +e0innin0 on or after Lanuary 3, 2033= "hese stan$ar$s are either not relevant to the 8rou'?s o'erations or are not e:'ecte$ to have si0nificant im'act on the 8rou'?s financial statementsG A end ent to "A# '% =inancial "nstru ents; Presentation B Classification of )ig5ts "ssues 6effective for annual periods /eginning on or after =e/ruary 0&( %0&073 "he 6*S& amen$e$ 6*S 2 to allo% ri0hts, o'tions or %arrants to ac<uire a fi:e$ num+er of the entityFs o%n e<uity instruments for a fi:e$ amount of any currency to +e classifie$ as e<uity instruments 'rovi$e$ the entity offers the ri0hts, o'tions or %arrants 'ro rata to all of its e:istin0 o%ners of the same class of its o%n non>$erivative e<uity instruments= "his inter'retation has no im'act on the 8rou'?s financial statements=
"C" Pa-istan ?i ited *nnual 4e'ort 2030 &6'

$otes to t5e Consolidated =inancial #tate ents

#or the year en$e$ 2ecem+er 3, 2030

"=)"C &0 *!tinguis5ing =inancial ?ia/ilities wit5 *+uity "nstru ents 6effective for annual periods /eginning on or after Euly 0&( %0&073 "his inter'retation 'rovi$es 0ui$ance on the accountin0 for $e+t for e<uity s%a's= "his inter'retation has no im'act on 8rou'?s financial statements= "A# %4 )elated Party Disclosures 6revised %0007 B effective for annual periods /eginning on or after Eanuary 0&( %0&&3 "he revision amen$s the $efinition of a relate$ 'arty an$ mo$ifies certain relate$ 'arty $isclosure re<uirements for 0overnmentrelate$ entities= "he amen$ment in future may result in certain chan0es in $isclosures= A end ents to "=)"C &4 "A# &0 B 25e ?i it on a Defined 1enefit Assets( :ini u =unding )e+uire ents and t5eir "nteraction 6effective for annual periods /eginning on or after Eanuary 0&( %0&&73 "hese amen$ments remove uninten$e$ conse<uences arisin0 from the treatment of 're'ayments %here there is a minimum fun$in0 re<uirement= "hese amen$ments result in 're'ayments of contri+utions in certain circumstances +ein0 reco0nise$ as an asset rather than an e:'ense= "his amen$ment is not li,ely to have any im'act on 8rou'?s financial statements= 6 prove ents to "=)#s %0&0 > 6n May 2030, the 6*S& issue$ im'rovements to 6#4Ss 2030, %hich com'rise of 33 amen$ments to 7 stan$ar$s= Effective $ates, early a''lication an$ transitional re<uirements are a$$resse$ on a stan$ar$ +y stan$ar$ +asis= "he ma9ority of amen$ments are effective for annual 'erio$s +e0innin0 on or after Lanuary 3, 2033= "he amen$ments inclu$e list of events or transactions that re<uire $isclosure in the interim financial statements an$ fair value of a%ar$ cre$its un$er the customer loyalty 'ro0rammes to ta,e into account the amount of $iscounts or incentives that other%ise %oul$ +e offere$ to customers that have not earne$ the a%ar$ cre$its= Certain of these amen$ments %ill result in increase$ $isclosures in the financial statements= A end ents to "A# &% B deferred ta! on invest ent property 6effective for annual periods /eginning on or after Eanuary &( %0&%73 "he 2030 amen$ment 'rovi$es an e:ce'tion to the measurement 'rinci'le in res'ect of investment 'ro'erty measure$ usin0 the fair value mo$el in accor$ance %ith 6*S 40 6nvestment )ro'erty= "he amen$ment has no im'act on financial statements of the 8rou'= A end ents to "=)# . B Disclosures B 2ransfers of =inancial Assets 6effective for annual periods /eginning on or after Euly &( %0&&73 "he amen$ments intro$uce ne% $isclosure re<uirements a+out transfers of financial assets inclu$in0 $isclosures for financial assets that are not $ereco0nise$ in their entiretyS an$ financial assets that are $ereco0nise$ in their entirety +ut for %hich the entity retains continuin0 involvement= "hese amen$ments %ill result in increase$ $isclosures in the financial statements= 453 Dividend "he $irectors in their meetin0 hel$ on #e+ruary 3/, 2033 have recommen$e$ a final $ivi$en$ of 4s 32=00 'er share (200AG 4s 4=(0 'er share) in res'ect of year en$e$ 2ecem+er 3, 2030= "he consoli$ate$ financial statements for the year en$e$ 2ecem+er 3, 2030 $o not inclu$e the effect of the a+ove $ivi$en$ %hich %ill +e accounte$ for in the 'erio$ in %hich it is a''rove$= 463 Date of Aut5orisation "hese consoli$ate$ financial statements %ere authorise$ for issue in the &oar$ of 2irectors meetin0 hel$ on #e+ruary 3/, 2033= 4.3 4.3& 4.3% General #i0ures have +een roun$e$ off to the nearest thousan$ ru'ees e:ce't state$ other%ise= Corresponding =igures Corres'on$in0 fi0ures have +een rearran0e$ an$ reclassifie$, %herever necessary, for +etter 'resentation an$ $isclosure= )eclassification fro co ponent )eclassification to co ponent *$ministration an$ 8eneral E:'enses >*$vertisin0 an$ 'u+licity e:'enses Sellin0 an$ 2istri+ution E:'enses >5i0htin0, heatin0 an$ coolin0 A ounts in )s M000 3,107

*$ministration an$ 8eneral E:'enses >8eneral e:'enses Sellin0 an$ 2istri+ution E:'enses >8eneral e:'enses

3,774

: E Eaffer

Chairman / 2irector

@a+ar A :aliChief E:ecutive

Chief #inancial !fficer

=ero> )i>vi

&64

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

$otice of :eeting

.otice is here+y 0iven that the #ifty>.inth *nnual 8eneral Meetin0 of 6C6 )*@6S"*. 56M6"E2 %ill +e hel$ on ;e$nes$ay, *'ril 27, 2033 at 33G00 a=m= at the 6nstitute of Chartere$ *ccountants of )a,istan, Chartere$ *ccountants *venue, Clifton, @arachi, to transact the follo%in0 +usinessS

,)D"$A)L 1G#"$*## 3= "o receive, consi$er an$ a$o't the accounts of the Com'any for the year en$e$ 2ecem+er 3, 2030, the re'ort of the *u$itors thereon an$ the re'ort of the 2irectors= 2= "o $eclare an$ a''rove #inal cash $ivi$en$ O 320C i=e=, 4s= 32=00 'er or$inary share of 4s 30/> each for the year en$e$ 2ecem+er 3, 2030 as recommen$e$ +y the 2irectors, 'aya+le to the Mem+ers %hose names a''ear in the 4e0ister of Mem+ers as at *'ril 20, 2033= = "o a''oint the *u$itors of the Com'any an$ to fi: their remuneration= 4= "o elect ei0ht 2irectors in accor$ance %ith the 'rovisions of the Com'anies !r$inance 3A14 for a 'erio$ of three years commencin0 from *'ril 2A, 2033= "he retirin0 2irectors are Messrs M L Laffer, ;a<ar * Mali,, Mueen *f-al, *li * *0a, &art @aster, Lames 4 4ees, #ero4i-vi, 4o0ier M 8 4oelen, M .a%a- "i%ana, 2ere, ; ;elch=

#P*C"A? 1G#"$*## (= "o authori-e the E:ecutive 2irectors to hol$ their res'ective offices of 'rofit in the Com'any= * statement as re<uire$ +y section 3/0(3)(+) of the Com'anies !r$inance 3A14 in res'ect of the s'ecial +usiness to +e consi$ere$ at the *nnual 8eneral Meetin0 is anne:e$=

&y !r$er of the &oar$

March 23, 2033 @arachi

Saira .ishtar Com'any Secretary

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&65

$otes;
3= Share "ransfer &oo,s of the Com'any %ill remain close$ from *'ril 20, 2033 to *'ril 27, 2033 (+oth $ays inclusive)= "ransfers receive$ in or$er at the office of our Shares 4e0istrar, #*MC! *ssociates ()vt) 5imite$, State 5ife &uil$in0 3>*, 3st #loor, 6=6= Chun$ri0ar 4oa$, @arachi>74000, +y the close of +usiness on *'ril 3A, 2033 %ill +e in time to entitle the transferees to the final $ivi$en$ an$ to atten$ the meetin0= 2= *ll Mem+ers are entitle$ to atten$ an$ vote at the meetin0= = * Mem+er entitle$ to atten$ an$ vote at the meetin0 is entitle$ to a''oint a 'ro:y to atten$, s'ea, an$ vote for him/her= * 'ro:y must +e a Mem+er of the Com'any= 4= *n instrument of 'ro:y a''lica+le for the meetin0 is +ein0 'rovi$e$ %ith the notice sent to Mem+ers= #urther co'ies of the instrument of 'ro:y may +e o+taine$ from the 4e0istere$ !ffice of the Com'any $urin0 normal office hours = (= *n instrument of 'ro:y must, to +e vali$, +e $e'osite$ at the 4e0istere$ !ffice of the Com'any not less than 41 hours +efore the time of the meetin0= /= Mem+ers are re<ueste$ to su+mit a co'y of their Com'uteri-e$ .ational 6$entity Car$ (C.6C), if not alrea$y 'rovi$e$ an$ notify imme$iately chan0es, if any, in their re0istere$ a$$ress to our Shares 4e0istrar, #*MC! *ssociates ()vt) 5t$= 7= C2C *ccount Hol$ers %ill further have to follo% the un$er mentione$ 0ui$elines as lai$ $o%n in Circular 3 $ate$ Lanuary 2/, 2000 issue$ +y the Securities an$ E:chan0e Commission of )a,istan= A3 =or Attending t5e :eeting; (i) 6n case of in$ivi$uals, the account hol$er or su+>account hol$er an$/or the 'erson %hose securities are in 0rou' account an$ their re0istration $etails are u'loa$e$ as 'er the 4e0ulations, shall authenticate his i$entity +y sho%in0 his ori0inal C.6C or ori0inal 'ass'ort at the time of atten$in0 the meetin0= (ii) 6n case of cor'orate entity, the &oar$ of 2irectors? resolution/'o%er of attorney %ith s'ecimen si0nature of the nominee shall +e 'ro$uce$ (unless it has +een 'rovi$e$ earlier) at the time of the meetin0= 13 =or Appointing Pro!ies; (i) 6n case of in$ivi$uals, the account hol$er or su+>account hol$er an$/or the 'erson %hose securities are in 0rou' account an$ their re0istration $etails are u'loa$e$ as 'er the 4e0ulations, shall su+mit the 'ro:y form as 'er the a+ove re<uirement= (ii) "he 'ro:y form shall +e %itnesse$ +y t%o 'ersons %hose names, a$$resses an$ C.6C num+ers shall +e mentione$ on the form= (iii) *tteste$ co'ies of C.6C or the 'ass'ort of the +eneficial o%ners an$ the 'ro:y shall +e furnishe$ %ith the 'ro:y form= (iv) "he 'ro:y shall 'ro$uce his ori0inal C.6C or ori0inal 'ass'ort at the time of the meetin0= (v) 6n case of cor'orate entity, the &oar$ of 2irectors? resolution/'o%er of attorney %ith s'ecimen si0nature shall +e su+mitte$ (unless it has +een 'rovi$e$ earlier) alon0 %ith 'ro:y form to the Com'any= 1= *ny 'erson %ho see,s to contest the election of 2irectors shall file %ith the Com'any at its re0istere$ office not later than fourteen $ays +efore the a+ove sai$ meetin0 his / her intention to offer himself / herself for the election of the 2irectors in terms of Section 371 ( ) of the Com'anies !r$inance, 3A14 to0ether %ith (a) consent in #orm 21, (+) a 2eclaration %ith consent to act as a 2irector in the manner as 'rovi$e$ un$er clause (ii) of the Co$e of Cor'orate 8overnance, (c) a 2eclaration in terms of clause (iii), (iv) an$ (v) of the Co$e of Cor'orate 8overnance=

&66

*nnual 4e'ort 2030 "C" Pa-istan ?i ited

#2A2*:*$2 G$D*) #*C2",$ &60 6&7 6/7 ,= 2F* C,:PA$"*# ,)"$A$C*( &084

"his statement sets out the material facts concernin0 the S'ecial &usiness to +e transacte$ at the *nnual 8eneral Meetin0 to +e hel$ on *'ril 27, 2033=

AG*$DA "2*: 5 "he E:ecutive 2irectors are to +e authori-e$ to hol$ their res'ective offices of 'rofit in the Com'any un$er their res'ective contracts of service= #or this 'ur'ose, it is 'ro'ose$ that the follo%in0 resolutions +e consi$ere$ an$ 'asse$ as an or$inary resolutionG )*#,?9*D 2FA2 a''roval +e an$ is here+y 0rante$ for hol$in0 of offices of 'rofit in the Com'any +y the E:ecutive 2irectors, inclu$in0 the Chief E:ecutive an$ *lternate 2irectors (if any), an$ the 'ayment of remuneration to them for their res'ective 'erio$s of service in accor$ance %ith their res'ective contracts of service an$ the a''lica+le service rules of the Com'any (inclu$in0 %ithout limitation salary, +onuses, incentives, 'er<uisites, allo%ances an$ retirement +enefits)= =G2F*) )*#,?9*D 2FA2 in the event of any of the aforesai$ offices of 'rofit fallin0 vacant, the a''roval here+y 0iven shall, su+9ect to the terms of a''ointment, +e e<ually a''lica+le to any other 'erson a''ointe$ to fill such vacancy=

"C" Pa-istan ?i ited

*nnual 4e'ort 2030

&6.

Ad ission #lip
"he #ifty>ninth *nnual 8eneral Meetin0 of 6C6 )a,istan 5imite$ %ill +e hel$ on ;e$nes$ay, *'ril 27, 2033 at 33G00 a=m= at the 6nstitute of Chartere$ *ccountants of )a,istan, Chartere$ *ccountants *venue, Clifton, @arachi= Com'any?s trans'ort %ill %ait at the corner of @arachi Stoc, E:chan0e 4oa$, +et%een AG4( a=m= an$ 30G3( a=m= on the $ate of Meetin0= Sharehol$ers $esirous of atten$in0 the Meetin0 may avail this facility= @in$ly +rin0 this sli' $uly si0ne$ +y you for atten$in0 the Meetin0=

Co pany #ecretary .ame Sharehol$er .o= Si0nature

$ote; i) ii) "he si0nature of the sharehol$er must tally %ith the s'ecimen si0nature on the Com'any?s recor$= Sharehol$ers are re<ueste$ to han$ over $uly com'lete$ a$mission sli's at the counter +efore enterin0 the Meetin0 'remises=

CDC Account Folders J Pro!ies J Corporate *ntities; a) "he C2C *ccount Hol$er / )ro:y shall authenticate his i$entity +y sho%in0 his / her i$entity +y sho%in0 his / her ori0inal Com'uteri-e$ .ational 6$entity Car$ (C.6C) or ori0inal 'ass'ort at the time of atten$in0 the Meetin0= 6n case of cor'orate entity, the &oar$ of 2irectorsF resolution / 'o%er of attorney %ith s'ecimen si0nature of the nominee shall +e 'ro$uce$ at the time of the Meetin0 (unless it has +een 'rovi$e$ earlier)=

+)

25is Ad ission #lip is $ot 2ransfera/le

=or

of Pro!y

50t5 Annual General :eeting

6 / ;e of +ein0 mem+er(s) of 6C6 )a,istan 5imite$ hol$in0 or$inary shares here+y a''oint of or failin0 him / her

of %ho is / are also mem+er(s) of 6C6 )a,istan 5imite$ as my / our 'ro:y in my / our a+sence to atten$ an$ vote for me / us an$ on my / our +ehalf at the #ifty>ninth *nnual 8eneral Meetin0 of the Com'any to +e hel$ on *'ril 27, 2033 an$ at any a$9ournment thereof=

*s %itness my / our han$ / seal this Si0ne$ +y the sai$ in the 'resence of 3=

$ay of

2033

2=

#olio / C2C *ccount .o=

Si0nature on 4evenue Stam' of *''ro'riate Value "his si0nature shoul$ a0ree %ith the s'ecimen re0istere$ %ith the Com'any=

" portant; 3= "his )ro:y #orm, $uly com'lete$ an$ si0ne$, must +e receive$ at the 4e0istere$ !ffice of the Com'any, 6C6 House, ( ;est ;harf, @arachi, not less than 41 hours +efore the time of hol$in0 the meetin0= 2= = .o 'erson shall act as 'ro:y unless he himself is a mem+er of the Com'any, e:ce't that a cor'oration may a''oint a 'erson %ho is not a mem+er= 6f a mem+er a''oints more than one 'ro:y an$ more than one instruments of 'ro:y are $e'osite$ +y a mem+er %ith the Com'any, all such instruments of 'ro:y shall +e ren$ere$ invali$=

=or CDC Account Folders J Corporate *ntities; 6n a$$ition to the a+ove the follo%in0 re<uirements have to +e metG i) ii) "he 'ro:y form shall +e %itnesse$ +y t%o 'ersons %hose names, a$$resses an$ C.6C num+ers shall +e mentione$ on the form= *tteste$ co'ies of C.6C or the 'ass'ort of the +eneficial o%ners an$ the 'ro:y shall +e furnishe$ %ith the 'ro:y form=

iii) "he 'ro:y shall 'ro$uce his ori0inal C.6C or ori0inal 'ass'ort at the time of the meetin0= iv) 6n case of cor'orate entity, the &oar$ of 2irectors resolution / 'o%er of attorney %ith s'ecimen si0nature shall +e su+mitte$ (unless it has +een 'rovi$e$ earlier) alon0 %ith 'ro:y form to the Com'any=

Affi! Correct Postage

25e Co pany #ecretary "C" Pa-istan ?i ited "C" Fouse 5 @est @5arf 8arac5iB.4000

R((#Nr#)jp)*t+

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Sustal nabilitResort 2010

AkzoNobel

A/out us 8ey Perfor ance "ndicators A/out t5e report #ustaina/ility #trategy #ustaina/ility =ra ewor#ta-e5older Dialogue *cono ic Perfor ance 6nte0rity Mana0ement Sourcin0 #ocial Perfor ance Em'loyment )ractices Community 6nvestment Health, Safety & Security

03 02 04 0( 0/ 07

*nviron ental Perfor ance Emissions Control ;ater Isa0e ;aste Mana0ement )ro$uct Ste%ar$shi' Ener0y Efficiencies 8 Content 6n$e: 3/ 37 31 3A 20 23 2

01 0A

*ssurance statement

30 32 34

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Em'loyee En0a0ement

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Community 6nvestment

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Effluent "reatment )lant 4everse !smosis

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1N A AN

C ;e have use$ the 8 4e'ortin0 #rame%or, issue$ +y the 8lo+al 4e'ortin0 6nitiative (846) an$ are a''lyin0 the 846 4e'ortin0 #rame%or, at *''lication 5evel CB
Self $eclare$

CN

"hir$ chec,e$ 'arty

846 chec,e$

625irdBPartyBC5ec-ed7 JInite$ 4e0istrar of Systems (I4S)K has chec,e$ our re'ortin0 an$ has confirme$ it to +e *''lication 5evel CB

(e manufacture and sell a di.ersified ran/e of products +ncludin/ Pol-ester Staple 0iber1 Soda As21 3ecorati.e1 Automoti.e and +ndustrial Paints1 A/roc2emicals and Specialt- 42emicals5 (e also market toll#manufactured P2armaceuticals and Animal 6ealt2 products1 in addition to a ran/e of imported +ndustrial 42emicals and

Seeds5

Pes2a ar

+slamabad & Soda As2 Plant 92e ra & 0aisalabad Paints Plant & La2ore & La2ore & Pol-ester Plant S2eik2upura

"ultan /o

67A3 800+47 9arac2i 6-derabad

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42emicals Plant 9arac2i

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&

6dffeaoices and corporate offices

Plants and manufacturin/ sites :otal operatin/ result Pol-ester

Re/ional and business offices

As5 ;5)1 billion

<% 2% % 12 @

1;0= emplo-ees 8peratin/ Result> Rs5 ;5)1 billion Profit After :ax? Rs5 25%2 bilion

Soda As2 Paints Life Sciences 42emicals

4l Pabstan Limited Annual Report 2010 d SustaAnabt/t- B 01

@ey )erformance

6nte0rity Mana0ement
Co$e of Con$uct confirme$ inci$ents Co$e of Con$uct traine$D Mana0ement au$its inclu$in0 reassurance au$its Serious inci$ents > 5evel Serious inci$ents > 5evel 3, 2 Serious loss of containment > 5evel 4 4e0ulatory actions > 5evel num+er C em'loyees num+er num+er num+er num+er num+er

200A 30 300 / 3 0 0 0

2030 2 300 33 3 2 0 0

203( "ar0et 0 300DD / 0 0 0 0

Sourcin0
Ven$or )olicy si0ne$ +y ,ey su''liers Ven$or )olicy si0ne$ +y central .)4 su''liersDDD Su''ortive su''lier visits since 2007 C C num+er 11 D 23 1 =1 > 7A A/ > 34/

Em'loyment )ractices
;omen e:ecutivesDDDDD !n>line )&2 2ialo0 'artici'ation Mana0ement $evelo'ment 'ro0ram Em'loyee en0a0ement in$e: C C .o of mana0ers C favora+le 0 77 4 > 0 10 323 7( 32 A0 1 10

Community 6nvestment
Community )ro0ram 6nvestment )@4 Million 3/=4/4 42=(DDD 0

Health, Safety & Security

#atalities em'loyees "otal re'orta+le in9ury rate em'loyees/su'ervise$ contractors 5ost time in9ury rate em'loyees/ su'ervise$ contractors !ccu'ational illness rate em'loyees "otal illness a+sence rate em'loyees #atalities contractors (su'ervise$ an$ in$e'en$ent) "otal re'orta+le in9ury rate in$e'en$ent contractors 5ost time in9ury inci$ence in$e'en$ent contractors C sites %ith &&S 'ro0ram 2istri+ution inci$ents Motor vehicle inci$ents %ith in9ury num+er /million hours /million hours /million hours C num+er /million hours num+er C num+er num+er 0 0=21 0 0 3=7A 3 0=(2 3 0 3 0 0 0=21 0=34 0 3=A2 0 0 0 300 3 3 0 0 0= 0 3=7/ 0 0 0 300 0 0

0%

#ustaina/ility 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Emissions Control
C!2 emissions 'er ton 'ro$uction V!C emissions 'er ton 'ro$uction .!: emissions 'er ton 'ro$uction S!: emissions 'er ton 'ro$uction 2irect C!2 emissions (Sco'e 3) 'er ton 'ro$uction 6n$irect C!2 emissions (Sco'e 2) 'er ton 'ro$uction te ,0/te te ,0/te te ,0/te te ,0/te million te ,0/te te ,0/te

200A 30(= 7 0=3( 3/3=2( 0=2 422=42 0=/3 34 3=40 2=0( 0=47 /7/=3 A,A07 (7=

2030 (2=(A 0=33 13=13 0=31 4 0=70 0=A 220A=33 4=7/ 0= A 1 4=70 2447=12 (=

203( "ar0et 4A=A/ 0=30 77=72 0=3/ 40A 0=1 24 0 4=A( 0= 7 7( 2 24=/( 4=7

;ater Isa0e
#resh %ater use 'er ton 'ro$uction C sites %ith sustaina+le fresh %ater million m m /te C /=4A A=1 2( 4=(A A=A 2( 4= / 1=A 300

;aste Mana0ement
"otal %aste 'er ton 'ro$uction "otal ha-ar$ous %aste 'er ton 'ro$uction .on>reusa+le %aste 'er ton 'ro$uction Ha-ar$ous non>reusa+le %aste 'er ton 'ro$uction Ha-ar$ous %aste to lan$fill 'er ton 'ro$uction ,iloton ,0/ton ,iloton ,0/ton ,iloton ,0/ton ,iloton ,0/ton ,iloton ,0/ton 3A=03( 27= 2 0= 3 0=4( 0=401 0=(A 0=3(3 0=22 0 0 4=432 A=( 0=(4 3=37 0=2A( 0=/4 0=2(3 0=(4 0 0 4=3A3 1=( 0=(3 3=04 0=210 0=(7 0=2 1 0=41 0 0

)ro$uct Ste%ar$shi'
)ro$uct Eco>'remium solutions C sales > > >

D .um+er of Mana0ement an$ .on>Mana0ement Em'loyees DD ;e aim to achieve 300C trainin0 level +y inclu$in0 contractual staff as %ell DDDMa9or )u+lic Sector Itility su''liers not inclu$e$ in this analysis D Monitorin0 starte$ 2030 DD #unctional an$ &usiness Hea$ )ositions DDD"his amount inclu$es contri+ution +y sta,ehol$ers inclu$in0 6C6 )a,istan 5imite$ staff an$ 'arent com'any contri+ution for floo$s=

6C6 )a,istan 5imite$ *nnual 4e'ort 2030

#ustaina/ility

0'

*+out the

;e +e0an voluntary re'ortin0 on sustaina+ility for the first time in 2001 %ith the first re'ort 'u+lishe$ alon0 %ith the *nnual 4e'ort coverin0 the 'erio$ 3 Lanuary 2001 to 3 2ecem+er 2001= "his %as follo%e$ +y a secon$ re'ort in 200A coverin0 the 'erio$ Lanuary 200A to 3 2ecem+er 200A= "his is our thir$ effort on 'resentin0 a Sustaina+ility 4e'ort an$ %e have use$ the 8 4e'ortin0 #rame%or, issue$ +y the 8lo+al 4e'ortin0 6nitiative (846) an$ are a''lyin0 the 846 4e'ortin0 #rame%or, at *''lication 5evel CB= 4e'ort &oun$ary "his re'ort covers our five &usinesses an$ all our Cor'orate #unctions= 6C6 )a,istan 5imite$ has four manufacturin0 sites, three cor'orate offices an$ five re0ional/+usiness offices=

2ata Collection CollectionG *ll our environmental, health, safety an$ security $ata is $erive$ from our E)M $ata+ase %hich is centrally mana0e$ +y our Cor'orate Hea$<uarters in *mster$am= * <uarterly re'ortin0 cycle is in 'ractice an$ all relate$ information is 0athere$ an$ entere$ +y res'ective +usinesses an$ functions %hile the Cor'orate Health, Safety an$ Environment Mana0er, revie%s an$ mana0es the $ata for 6C6 )a,istan 5imite$ as a %hole= 2ata 'ertainin0 to inte0rity mana0ement, em'loyment 'ractices, sourcin0 an$ community investment is com'ile$ an$ monitore$ +y sustaina+ility council mem+ers res'onsi+le for each area= *ccuracyG ;e are confi$ent in the overall relia+ility of the $ata re'orte$, +ut reco0ni-e that some of this $ata is su+9ect to a certain $e0ree of uncertainty, inherent to limitations associate$ %ith measurin0 an$ calculatin0 $ata= Senior mana0ers %ithin the or0ani-ation a''rove$ the content an$ the <uantitative $ata use$ in the Sustaina+ility facts an$ fi0ures relatin0 to their res'ective areas of res'onsi+ility= ConsistencyG "he @)6s set an$ the $ata re'orte$ this year serve as a +aseline an$ re'ortin0 stan$ar$ for the years to come= *ny a$$itional $evelo'ments shall +e re'orte$ accor$in0ly ho%ever, the re'ortin0 frame%or, esta+lishe$ this year shall +e a consistent +aseline stan$ar$= *ssurance & Verification

So$a *sh

)olyester

)aints

Chemicals

5ife Sciences

)harmaceuticals

*nimal Health

See$s

!ur sustaina+ility 'erformance is monitore$ throu0h a multi>$isci'linary Sustaina+ility Council= "his year, %e also ha$ Ernst & Moun0 con$uctin0 an in$e'en$ent sustaina+ility au$it results of %hich have +een incor'orate in our im'rovement 'lans= "his Sustaina+ility Summary 4e'ort forms 'art of our sustaina+ility re'ortin0 an$ is $esi0ne$ for 0eneral rea$ershi' only= Inite$ 4e0istrar Systems (I4S) has con$ucte$ an in$e'en$ent verification an$ assurance of $ata 'resente$ in this re'ort= "he in$icators for our sustaina+ility re'ortin0 are selecte$ from the 8 4e'ortin0 #rame%or, issue$ +y the 8lo+al 4e'ortin0 6nitiative (846)= "he 846 is a lar0e multi>sta,ehol$er international net%or, of thousan$s of sustaina+ility e:'erts= "he 846 8 4e'ortin0 #rame%or, is the most %i$ely acce'te$ 0lo+al stan$ar$ for cor'orate res'onsi+ility re'ortin0= Contact Is ;e encoura0e fee$+ac, on our Sustaina+ility 4e'ort= 6f you %oul$ li,e to comment on the re'ort or fin$ out more a+out our Sustaina+ility strate0y an$ 'ro0ram, 'lease e>mail us atG sustaina+ility=councilOa,-ono+el=com * soft co'y of this re'ort an$ a$$itional information on our +usiness units an$ 'ro$ucts is availa+le on our %e+site at %%%=a,-ono+el=com/', 6f you are una+le to access these resources or nee$ further information, 'lease contactG Seemi Saa$ > Mana0er Cor'orate Communications & )u+lic *ffairs ( ;est ;harf, @arachi, )a,istan A223> 2 3 (24 Sye$ 6<+al Hai$er > 8rou' "echnical Mana0er 6C6 House / Mo-an0, 5ahore, )a,istan A242> / /A 12

Ve0eta+le See$s

"he te:t an$ statistics in this 4e'ort cover sites o%ne$ an$ o'erate$ %holly +y 6C6 )a,istan 5imite$ $urin0 the 'erio$ 3 Lanuary 2030 to 3 2ecem+er 2030= Em'loyee $ata inclu$es mana0ement an$ non> mana0ement staff= Community 6nvestment is han$le$ +y the 6C6 )a,istan #oun$ation %hich is a se'arate le0al entity re0istere$ as a "rust= *ll monetary amounts in this 4e'ort are )a,istani 4u'ees, unless other%ise in$icate$= 4e'ortin0 )erio$ "he re'ortin0 'erio$ is Lanuary 03, 2030 to 2ecem+er 3, 2030 an$ $ata has mainly +een o+taine$ from our financial mana0ement re'ortin0 systems, cor'orate H4 information mana0ement system an$ the *,-o.o+el an$ former 6C6 cor'orate re'ortin0 systems for Health, Safety, Environment & Security (HSE&S) 'erformance in$icators= 4e'ort Content 6n 2030, an im'ortant ste' to%ar$s inte0ratin0 sustaina+ility %ithin the or0ani-ation %as con$uctin0 a sta,ehol$er $ialo0ue an$ esta+lishin0 @ey )erformance 6n$icators (@)6s)= "hese @)6s also have tar0ets set for 203( %hich shall serve as 'athfin$ers for us= "he content of this re'ort has +een $evelo'e$ in accor$ance %ith the @)6s an$ our 'erformance a0ainst these= "he content of this re'ort has +een $eci$e$ u'on +y the Sustaina+ility Council an$ has +een $evelo'e$ in accor$ance %ith our Sustaina+ility frame%or, +ase$ on the tri'le +ottom line conce't of economic, social an$ environmental 'arameters=

04

#ustaina/ility 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Sustaina+ility

2urin0 2030 %e 'ut in 'lace a frame%or, +uilt aroun$ the tri'le +ottom line conce't of economic, social an$ environmental factors= &ase$ on the frame%or, %e con$ucte$ a sta,ehol$er en0a0ement 'ro0ram an$ $evelo'e$ @)6s for each se0ment in com'lete ali0nment %ith our 'arent com'any= * com'any %i$e a%areness of the sustaina+ility frame%or, %as create$ to unify un$erstan$in0 of the sustaina+ility a0en$a= "he ne:t ste' is to restructure the Sustaina+ility Council +roa$enin0 the +ase an$ e:ten$in0 the sco'e an$ functionality %ithin the or0ani-ation to +rin0 a+out a more $efine$ action +ase$ a''roach= !ur Sustaina+ility 0ui$in0 'rinci'le isG ;e?re committe$ to re$ucin0 our im'act on the 'lanet an$ $eliverin0 more sustaina+le 'ro$ucts an$ solutions to our customers= *n$ %e can only $o this if sustaina+ility is at the heart of everythin0 %e $o= "hat?s %hy %e aim to inte0rate sustaina+ility into every area of our +usiness > for the +enefit of our customers, sharehol$ers, em'loyees an$ the %orl$ aroun$ us= Esta+lishin0 @)6s an$ 4estructurin0 the Sustaina+ility Council is the first ste' to%ar$s inte0ratin0 sustaina+ility %ithin the or0ani-ation= !nce this is achieve$, a formal 'lan of action an$ $elivera+les shall +e set to achieve

the overall o+9ective of em+e$$in0 sustaina+ility into every area of our +usiness= "he Sustaina+ility 4oa$ma' %e have $rafte$ for ourselves is a +ase$ on the follo%in0 ste'sG H Esta+lishin0 a Sustaina+ility #rame%or, H !+tainin0 Sta,ehol$er #ee$+ac, H 2efinin0 @ey )erformance 6n$icators H Settin0 "ar0ets H 4estructurin0 Sustaina+ility Council H 6nclu$in0 a +roa$er +ase of $ecision ma,ers in the council H Esta+lishin0 small %or,in0 0rou's %ithin the council H 2efinin0 roles, res'onsi+ilities an$ $elivera+les of each mem+er an$ %or,in0 0rou' H Monitorin0 'ro0ress a0ainst tar0ets

#ustaina/ility "ntegration Paradig

2033 > 203( 2033 2033 2030

)estructuring #ustaina/ility Council 6nclu$in0 a +roa$er +ase of $ecision ma,ers in the council Esta+lishin0 small %or,in0 0rou's %ithin the council 2efinin0 roles, res'onsi+ilities an$ $elivera+les of each mem+er an$ %or,in0 0rou' Defined Plan of Action for effective c5ange 2efine$ tar0ets, 'lans of actions, monitorin0 an$ evaluation criteria for 'ro0ress :onitoring < *valuation Mana0e 'ro0ress on set tar0ets 6$entify 0a's an$ reali0n 'rocesses

2030 2001>200A
#tart of t5e #ustaina/ility Iourney &asic Sustaina+ility 4e'ort 'u+lishe$ Sustaina+ility Council esta+lishe$ Secon$ Sustaina+ility 4e'ort 'u+lishe$ *sta/lis5ing a #ustaina/ility =ra ewor*%areness an$ acce'tance %ithin the or0ani-ation

Defining 8ey Perfor ance "ndicators Sta,ehol$er En0a0ement *li0ne$ %ith *,-o.o+el @)6s an$ strate0ic a0en$a 2efinin0 tar0ets 846>com'liant re'ort 'u+lishe$

6C6 )a,istan 5imite$ *nnual 4e'ort 2030

#ustaina/ility

05

Sustaina+ility

Economic )erformance 6nte0rity Mana0ement Sourcin0 Social )erformance Health, Safety an$ Security Em'loyment )ractices Community 6nvestment Environmental )erformance Emissions Control ;ater Isa0e ;aste Mana0ement )ro$uct Ste%ar$shi' Ener0y Efficiencies

ina+ility Sustaina+ility

06

#ustaina/ility 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Sta,ehol$er

2ialo0ue is a uni<ue learnin0 e:'erience an$ is the first ste' to%ar$s +uil$in0 lastin0, healthy relationshi's %ith sta,ehol$ers= !ur most im'ortant sta,ehol$ers are our customers, em'loyees, su''liers, o%ners an$ re0ulators= E<ually im'ortant are the 'eo'le %ho live close to our sites, local communities an$ non>0overnmental or0ani-ations (.8!s)= "heir claims an$ e:'ectations vary 0reatly $e'en$in0 on their in$ivi$ual interests= Sustaina+le solutions can only +e $evelo'e$ if all societal 0rou's %or, to0ether= "hat?s %hy this year %e initiate$ a formal sta,ehol$er $ialo0ue %ith our ,ey sta,ehol$ers= ;e commissione$ Inite$ 4e0istrar of Systems (I4S) to con$uct the $ialo0ue for us= * com'rehensive en0a0ement 'rocess %as initiate$ %ith one on one intervie%s, in$ivi$ual an$ 0rou' meetin0s con$ucte$ +y the I4S team= * $etaile$ fee$+ac, re'ort %as share$ %ith us %hich %ill no% serve as a 'ath fin$er in our 9ourney of sustaina+ility= "he follo%in0 sta,ehol$er 0rou's %ere a$$resse$ in the $ialo0ueG Sta,ehol$er Community Customers Contractors Su''liers 4e0ulators "ar0et 8rou' Community aroun$ So$a *sh 'lant in @he%ra 6n$ustrial 'aints customers Contractual Services inclu$in0 Man'o%er Su''liers an$ "rans'orters at the )olyester &usiness )rinters an$ )ac,a0ers of 5ife Sciences &usiness Environmental )rotection *0ency )a,istan

;e also con$ucte$ an Em'loyee En0a0ement Survey for our staff in 2030= * com'any%i$e online survey %as hel$ an$ fee$+ac, from staff %as sou0ht on various areas to 0au0e en0a0ement levels= "he fee$+ac, receive$ has +een consoli$ate$ into an action 'lan for all mana0ers=

#ocus *rea Ho% has 6C6?s 'resence affecte$ their lives an$ %hat im'rovements can +e further ma$e 8au0e service an$ customer satisfaction levels an$ %hat more can +e $one to im'rove Measure im'act an$ 'ro0ress of safety an$ environmental 'ro0rams e:ten$e$ to contractors 8ain fee$+ac, on effectiveness of su''lier su''ortive 'ro0rams an$ other sourcin0 issues Environmental 'erformance an$ ho% to im'rove o%n an$ in$ustry stan$ar$s

6C6 )a,istan 5imite$ *nnual 4e'ort 2030

#ustaina/ility

0.

Economic

6nte0rity Mana0ement
Com'liance an$ inte0rity mana0ement are the +ac,+one of our 0overnance 'rocess an$ form the +asis for our license to o'erate= *t its core is our Co$e of Con$uct that $etails the re<uirements on em'loyees an$ on the com'any to o'erate %ith inte0rity, an$ lays out rules an$ 'rinci'les 0overnin0 issues such as +usiness inte0rity, la+or relations, health, safety an$ the environment, an$ community involvement=

2030 !vervie%
6n 2001 all Mana0ement an$ .on>Mana0ement em'loyees %ere 0iven Co$e of Con$uct trainin0= #or all ne% em'loyees Co$e of Con$uct trainin0 is man$atory at the time of in$uction an$ H4 Mana0ers across the com'any ensure this= #or staff havin0 access to email, an online trainin0 'ro0ram is also availa+le for refresher trainin0= !ur 0au0e for Co$e of Con$uct inci$ents is S'ea, u'= "he num+er of S'ea, I' inci$ents rose from 30 in 200A to 2 in 2030= "he main reason +ehin$ this is that %e con$ucte$ various ethics an$ Co$e of Con$uct a%areness sessions hi0hli0htin0 our S'ea, I' 'rocess= Conse<uent to this, the num+er 'eo'le availin0 the S'ea, I' o'tion has increase$= *lso in 2030 au$its of all five +usinesses, cor'orate functions, Sustaina+ility au$it an$ four S'ecial / investi0ative au$its %ere con$ucte$ +y Ernst & Moun0 "he a0ree$ 'lan of action for future years is to have si: au$its (five +usinesses an$ one cor'orate) an$ that is our 203( tar0et= "he Sustaina+ility au$it %as con$ucte$ for the first time= "his au$it %ill further hel' us i$entify areas of $evelo'ment=

Monitorin0 Com'liance
"o ensure effective com'liance, inte0rate$ 'roce$ures an$ mana0ement 'rocesses are in 'laceG S'ea, I'G * 'roce$ure %hich allo%s em'loyees to e:'ress their concerns on (alle0e$) +reaches of the Co$e of Con$uct= * 0lo+al su''lier o'erates a confi$ential tele'hone an$ %e+>+ase$ re'ortin0 system= *ll +reaches of the Co$e of Con$uct are fully investi0ate$ un$er the su'ervision of the Com'liance Mana0er= .on>financial letter of re'resentationG Each &usiness Init has 'rocesses in 'lace to assure com'liance %ith the Co$e of Con$uct an$ other cor'orate re<uirements= *t the en$ of the year each senior mana0er an$ finally the +usiness unit mana0er si0ns the non>financial letter of re'resentation to confirm com'liance= "he outcome is revie%e$ %ith the 8eneral Counsel an$ the results are re'orte$ to the E:ecutive Committee an$ the *u$it Committee= Com'liance au$itsG "hese are con$ucte$ %ithin the com'anyS the outcome is share$ %ith the Com'liance Mana0er=

#uture )lans
)ut in 'lace a com'any%i$e ro+ust Co$e of Con$uct trainin0 'rocess %ith effective monitorin0= *lso, %e aim to e:ten$ co$e of con$uct trainin0 to all contractual staff as %ell= *lso, refresher sessions for all non> mana0ement staff are 'lanne$ for 2033=

@ey )erformance 6n$icators

200A Co$e of Con$uct confirme$ inci$ents Co$e of Con$uct traine$D Mana0ement au$its inclu$in0 reassurance au$its Serious inci$ents > 5evel Serious inci$ents > 5evel 3, 2 Serious loss of containment > 5evel 4 4e0ulatory actions > 5evel
D .um+er of Mana0ement an$ .on>Mana0ement Em'loyees DD ;e aim to achieve 300C trainin0 level +y inclu$in0 contractual staff as %ell

2030 2 300 33 3 2 0 0

203( "ar0et 0 300DD / 0 0 0 0

num+er C em'loyees num+er num+er num+er num+er num+er

30 300 / 3 0 0 0

08

#ustaina/ility 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Sourcin0
6n or$er to achieve sustaina+le 0ro%th, it is essential for us to +uil$ stron0 +usiness relationshi's %ith su''liers %hose actual %or,in0 'ractices shoul$ meet our re<uirements= ;e aim to $o +usiness %ith 'artners %ho en$orse our ethical values an$ our social an$ environmental stan$ar$s=

2030 !vervie%
6n 2030, %e e:'an$e$ the focus of sourcin0 to inclu$e .on )ro$uct 4elate$ (.)4) su''liers= ;e ma$e a shift to%ar$s centrali-e$ com'liance +y inclu$in0 the assortment of .)4 su''liers %e en0a0e %ith on a re0ular +asis= "his has intro$uce$ formali-e$ 'rocesses for 0reater efficiency, trans'arency as %ell as +etter +uyin0 syner0ies=

Measurin0 )ro0ress
"o measure our 'ro0ress, %e have create$ the follo%in0 +uil$in0 +loc,sG Ven$or Com'liance 5etter &y si0nin0 the Ven$or Co$e of Co$e, our su''liers en$orse an$ a0ree to follo% the Health, Safety, Environmental an$ Security stan$ar$s, as formulate$ in our Co$e of Con$uct an$ le0islative re<uirements of the country= !n an annual +asis, %e revie% an$ strive to ma:imi-e the num+er of com'liant su''liers= Su''lier Su''ortive Visits 6n line %ith our 8lo+al Su''lier En0a0ement 'ro0ram, %e have esta+lishe$ a 'ro0ram of on>site visits to Critical Su''liers= "he o+9ective of these JSu''lier Su''ort VisitsK is to i$entify an$ nurture these critical su''liers as sustaina+le +usiness 'artners= *s a 'art of the formal 'rocess, %e also con$uct HSE assessments %hich outline a t%o year 'rocess as to %here they are at 'resent an$ %here they nee$ to +e= * com'rehensive chec,list is use$ to fin$ stren0ths an$ %ea,nesses after %hich %e hel' i$entify actions an$ offer su''ort an$ 0ui$ance on ho% to achieve im'rovements= "hrou0h formal fee$>+ac, re'orts an$ follo%>u' visits, %e %or, to0ether %ith our su''liers to im'rove their overall sustaina+ility=

#uture )lans
!ur critical su''liers %ith %hom %e %or, on im'rovin0 their sustaina+ility, have a''reciate$ the efforts= "his encoura0es us to further e:ten$ such visits to more su''liers= ;hile %e %or, to%ar$s this en$ of %i$enin0 the +ase, %e %oul$ li,e to continue our current focus in 2033 throu0h increase$ monitorin0=

@ey )erformance 6n$icators

200A Ven$or )olicy si0ne$ +y ,ey su''liers Ven$or )olicy si0ne$ +y central .)4 su''liersD Su''ortive su''lier visits since 2007
DMa9or )u+lic Sector Itility su''liers not inclu$e$ in this analysis DD Monitorin0 starte$ 2030

2030 1 =1

203( "ar0et A/

C C num+er

11 DD 23

7A

34/

6C6 )a,istan 5imite$ *nnual 4e'ort 2030

#ustaina/ility

00

Social

Em'loyment )ractices
6t is our am+ition to +e reco0ni-e$ +y our em'loyees > an$ those loo,in0 to 9oin us > as a com'any %hich offers o''ortunity to its 'eo'le for on0oin0 learnin0, $evelo'ment an$ 0ro%th in an environment that?s $efine$ +y our com'any values= ;e +elieve that 0ro%in0 our 'eo'le is the %ay to 0ro% our +usiness for the lon0 term an$ %e focus our effort on $evelo'in0 a soli$ "alent #actory= Diversity and "nclusion 2iversity is a+out em+racin0 the human attri+utes that ma,e us uni<ue an$ 6nclusion is the foun$ation that ma,es 2iversity 'ossi+le= *n inclusive environment is one %here these $ifferences are value$ an$ %here everyone has the o''ortunity to $evelo' their s,ills an$ talents= ;hile not e:clu$in0 other 0rou's, our initial focus is on im'rovin0 0en$er $iversity an$ further stren0thenin0 our com'any?s en0a0in0 environment= ?eaders5ip pipeline * stron0 lea$ershi' 'i'eline is crucial to su''ortin0 the com'any?s 0ro%th am+itions= !ur 5ea$ershi' "alent 4evie%s in our +usinesses an$ functions 'lay an im'ortant role in i$entifyin0 'otential talent early, mana0in0 succession 'lannin0 an$ structurin0 in$ivi$ual $evelo'ment= Ca'a+ility 8rou's %ithin the com'any have +een forme$ to ascertain +ench stren0th of each functional area an$ 'lan future roa$ma's for our ,ey talent ensurin0 a stron0 line of succession %ithin the or0ani-ation as %ell as +uil$in0 ca'a+ility= * ployee engage ent En0a0ement is the measure of our 'eo'le?s commitment to their roles= 6t involves ,no%in0 %hat?s e:'ecte$ of em'loyees, ena+lin0 them to $o their +est an$ feelin0 value$= 6n 2030 %e launche$ the Vie%)oint Em'loyee En0a0ement > a 'ro0ram that %ill 'lay a vital role in +uil$in0 the "alent #actory %e nee$= Much more than 9ust a survey, Vie%)oint is a lon0>term 'ro0ram that %ill hel' em'o%er em'loyees to ma,e a $ifference an$ 0ive them a tool to im'rove the morale, 'ro$uctivity an$ 'erformance of their teams=

Measurin0 2evelo'ment

6n 2030 %e focuse$ our efforts on t%o main areasG 3= E:cellence in 'eo'le $evelo'ment > ensurin0 our mana0ers are 0iven the ri0ht su''ort to $evelo' themselves throu0h a ran0e of local an$ 0lo+al $evelo'ment 'ro0rams= 2= Stron0er em'loyee en0a0ement > creatin0 a %or,in0 environment %here 'eo'le feel value$ an$ are 0iven the ri0ht con$itions to 'erform at their +est= *!cellence in People Develop ent Perfor ance and Develop ent Dialog 6P<D Dialog7 "he )&2 2ialo0 incor'orates +oth a 'erformance revie% an$ $evelo'ment 'lannin0= !ur com'any Values an$ Success #actors (+ehavioral com'etencies) are an inte0ral 'art of all $evelo'ment $iscussions an$ have +een inte0rate$ into the system an$ annual 'erformance a''raisal 'rocess= :anage ent develop ent progra s 6n 200A, %e launche$ Mana0ement 2evelo'ment )ro0ramsS Mana0ement Essentials )ro0ram (ME)) an$ *$vance$ Mana0ement )ro0ram (*M)) to create common un$erstan$in0 of lea$ershi' an$ mana0ement com'etencies= "he 'ro0ram is a 0lo+al stan$ar$i-e$ +est 'ractice %ith *,-o.o+el an$ is +ein0 im'lemente$ across 2 countries=

Em'loyment )ractices as 'er our Co$e of Con$uct

;e are committe$ to an attractive %or,in0 environment for our em'loyees= 6n this res'ect, it is our res'onsi+ility to recruit, hire an$ 'romote em'loyees solely on the +asis of their suita+ility for the 9o+, to stimulate their in$ivi$ual an$ 'rofessional $evelo'ment an$ to 'rovi$e safe an$ healthy %or,in0 con$itions= 6t is also our res'onsi+ility to 'rohi+it harassment of any ,in$ an$ e:'loitation of la+or= ;e also a$here to the minimum le0al a0e re<uirements= 200A 2030 203( "ar0et C C 0 77 4 0 10 323 7( 3 01 32 A0 1 10

@ey )erformance 6n$icatorsG

;omen e:ecutivesD !n>line )&2 2ialo0 'artici'ationDD Mana0ement $evelo'ment 'ro0ram Em'loyee en0a0ement in$e:
D #unctional an$ &usiness Hea$ 'ositions DD Mana0ement staff

.um+er of mana0ers C favora+le "otal no= of em'loyees

Core develop ent Progra ;e 'rovi$e our em'loyees the tools to hel' them meet customer e:'ectations an$ 'osition the com'any as customers? clear choice= Em'loyees see,in0 functional learnin0 o''ortunities committe$ to a total of over 1,000 man hours of trainin0 on these 'ro0rams in 2030=

Cate0ories of em'loyees Mana0ement 714 .on>Mana0ement (24 Male / #emale 4atio 21/3 C of em'loyees in collective +ar0ainin0 a0reements, 300C of non > mana0ement em'loyees=

&0

#ustaina/ility 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

2030 !vervie%
*t 6C6 )a,istan, %e ta,e 'ri$e in +ein0 an e<ual o''ortunity em'loyer= Currently, our female em'loyees constitute 7C of our %or,force in mana0ement ca$re= #emales also constitute 7C of our senior mana0ement 'ositions ho%ever, at 'resentS %e have no female e:ecutives ($efine$ as &usiness or #unctional Hea$s)= 8oin0 for%ar$, it is our intention to continue to further su''ort $iversity %ithin our &usinesses an$ #unctions an$ increase the 'ercenta0e to at least 32C +y 203(= 6n 2030, 10 'ercent (200AG 77 'ercent) of em'loyees use$ the %e+> +ase$ 'rocess, %ith a 'a'er system availa+le for the remain$er= 6$eally online )&22 shoul$ +e at 300C +ut ho%ever $ue to a lar0e 0eo0ra'hic s'rea$ an$ remote locations, this has +een $ifficult to achieve= "he focus for 2033 %ill +e on continuin0 to increase the num+er of online users alon0 %ith maintainin0 our current achievement of 300C overall com'letion %ithin 0iven timelines of the 'rocess an$ the <uality of the mana0er> em'loyee $ialo0ue an$ $evelo'ment $iscussions=

"here is a nee$ to cover ma:imum num+er of mana0ers for Mana0ement 2evelo'ment )ro0ram so that ME) / *M) are em+e$$e$ <uic,ly an$ the %hole com'any can start s'ea,in0 the same lan0ua0e= &y 203(, %e aim to cover over 00 mana0ers %hich re'resent a''ro:imately 0 C of the total mana0ement 'o'ulation= Em'loyee En0a0ement Survey con$ucte$ in 2030 resulte$ in a concrete assessment of en0a0ement levels there+y allo%in0 us to $esi0n a 0reater em'loyee en0a0ement 'ro0ram Em'loyee En0a0ement 6n$e: for 2030 may +e mar,e$ at 7(C (currently %e are at an en0a0ement level of =74)= ;e aim to increase it to 10C +y 203( %hich %oul$ mean an avera0e mean score of 4 out of (=
8ey )ole B ?eaders5ip H H H #ormali-e enter'rise level strate0y an$ $rive 'lans Communication results / action ta,en re'ort &e role mo$els > +e the first one to con$uct im'act 'lannin0 sessions 4eco0ni-e an$ re%ar$ en0a0ement efforts an$ 'erformance Su''ort en0a0ement initiatives

e
8ey )ole B Fu an )esources H Create ena+lin0 H4 systems an$ 'rocesses H H H &uil$ mana0erial ca'a+ility for effective en0a0ement im'act 'lannin0 #acilitate an$ revie% en0a0ement im'act 'lannin0 &e the soun$in0 +oar$ for em'loyees & mana0ers > collate an$ escalate 'ervasive issues 2rive +est 'ractice collation an$ $issemination

H H

* ployee *ngage ent

8ey )ole B ?ine :anagers H H H Share en0a0ement results %ith the team 5ea$ team fee$+ac, on results an$ im'act 'lannin0 Escalate issues not %ithin the control of the team

Case Stu$y

Em'loyee En0a0ement Survey

!ur 2030 em'loyee survey focuse$ on en0a0ement, +ecause en0a0e$ teams 'ro$uce +etter results= "he 2030 8allu' U32 survey %as o'en to all em'loyees= 6n total, 7A 'ercent of our 0lo+al %or,force 'artici'ate$= "he results in$icate$ an overall en0a0ement score of =(/= 6n )a,istan, A4C of our %or,force 'artici'ate$ in the survey an$ the results in$icate$ an overall en0a0ement score of =74= "he 2030 results 'rovi$e us %ith an initial +enchmar, of our en0a0ement levels an$ an e:cellent startin0 'oint to ma,e the necessary im'rovements at all levels of our or0ani-ation= ;e %ill im'lement another full survey in 2033, %ith an am+ition of increasin0 the overall en0a0ement score to 4 +y 203(= "his %ill ena+le our mana0ers to trac, their 'ro0ress an$ continue to $rive im'rovements=

Community 6nvestment
;e?re as committe$ to our communities as %e are to our customers, sharehol$ers an$ em'loyees= !ur community investment activities are mana0e$ throu0h the 6C6 )a,istan #oun$ation %hich is a se'arate le0al entity %ith its o%n &oar$ of "rustees= "he #oun$ation is 0overne$ +y a "rust 2ee$ that clearly outlines the 'olicies an$ 'roce$ures an$ clearly $efines the sco'e of community investment activities= "he accounts of the #oun$ation are au$ite$ every year +y *=#= #er0uson & Co= "he #oun$ation is focuse$ to%ar$s community $evelo'ment throu0h investment in e$ucation, health, environment an$ infrastructural $evelo'ment alon0 %ith $isaster relief=

#loo$ 4elief Contri+ution

)@4 31 million
*,-o.o+el .V

6C6 )a,istan 5imite$

)@4 3( million

)@4 2 million
Staff

)@4 3 million
!thers

2030 !vervie%
6n 2030, )a,istan face$ one of the %orst $isasters in the history of the country in the form of floo$s= 6C6 )a,istan 5imite$, its staff, 'arent com'any an$ other relate$ concerns contri+ute$ a total of )@4 / million to the 6C6 )a,istan #oun$ation for floo$ relief an$ reha+ilitation= *lon0 %ith this 6C6 )a,istan Staff also ma$e in>,in$ contri+ution an$ 'ut to0ether over 30,000 care 'ac,s %ith imme$iate sustenance items Staff efforts for floo$s also inclu$e$ 2000 volunteerin0 hours "otal contri+ution for #loo$ 4eliefG )@4 / million *,-o.o+el .VG )@4 31 million 6C6 )a,istan 5imite$G )@4 3( million Staff Cash & 6n>,in$G )@4 2 million !thersG )@4 3 million ;ith most resources $e$icate$ to%ar$s #loo$ 4elief, many community initiatives 'lanne$ for 2030 %ere $eferre$= "he com'any s'ent 4s= /=( million on health, e$ucation an$ environmental 'ro0rams= * total of 4(00

volunteerin0 hours %ere contri+ute$ +y staff $urin0 the year, monetary value of %hich has +een accounte$ for in consoli$ation total community 'ro0ram investment num+er= 2etails 0iven in the Community 6nvestment Section of the re'ort on 'a0e /=

Measurin0 )ro0ressG
Every year, 6C6 )a,istan 5imite$ $onates a 'ercenta0e of 'rofit of the or0ani-ation to the #oun$ation= !ver the years, as the com'any has 0ro%n, contri+ution to the #oun$ation has also 0ro%n= !ther than contri+utions throu0h the #oun$ation, various +usinesses also $irectly invest in community 'ro9ects=

#uture )lans
;e have a''lie$ for the )C) ()a,istan Center for )hilanthro'y) Certification to further streamline the o'erations of the #oun$ation= )C) Certification is an en$orsement of 0oo$ house,ee'in0 'ractices for charita+le institutions= "he 'lans for 2033 centre on $evelo'in0 learnin0 centers across )a,istan= ;e have launche$ the ?6lm>o>Hunar? s,ill $evelo'ment 'ro0ram en$ of 2030 %ith a 'ilot 'ainter trainin0 'ro0ram %ith Construction "echnolo0y & "rainin0 6nstitute (C""6)= 6n the area of health, %e aim to e:ten$ our eye care 'ro0ram to other locations in colla+oration %ith lea$in0 eye care or0ani-ations li,e 54&"=

Community investment in 4s= million

200/ 2007 2001 200A 2030 A=44 34=/A2 23=/( 3/=4/4 42=(

@ey )erformance 6n$icators

200A Community )ro0ram 6nvestment 4s= Million 3/=4/4 2030 42=(D 203( "ar0et 0

D "his amount inclu$es contri+ution +y sta,ehol$ers inclu$in0 6C6 )a,istan 5imite$ staff an$ 'arent com'any contri+ution for floo$s=

&%

#ustaina/ility 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Case Stu$y

Community 6nvestment
*s mentione$ in our last years Sustaina+ility 4e'ort, in 200A, %e fun$e$, constructe$ an$ launche$ the @a,a'ir Seafoo$ @itchen in the fishin0 community of @a,a'ir Villa0e near San$s'it +each in @arachi= !ur i$ea %as to $esi0n a self sustainin0 'ro9ect that %oul$ 'rovi$e the fishin0 community %ith alternate livelihoo$= "he ,itchen is $esi0ne$ an$ e<ui''e$ for commercial coo,in0 an$ the i$ea is to 'romote the $elicious in$i0enous seafoo$ cuisine of the area as a foo$ alternative for +each>0oers= 6n year 2030, the 'ro9ect %as run an$ mana0e$ +y the villa0ers earnin0 a stea$y su''lemental income= "he 'rofits earne$ from this 'ro9ect not only cover the runnin0 e:'ense of the ,itchen +ut are reinveste$ +ac, into the community= "he 'ro9ect no% 'ays for the salary of a 'rivate teacher at the local Community School=

Fig5lig5t of t5e year !ur first reha+ilitation 'ro9ect for floo$ affectees is com'lete= ;e have hel'e$ +uil$ a mo$el villa0e in @hy+er )a,htoon @hu%a in 'artnershi' %ith @arachi 4elief "rust (@4")=

Each mo$el house has 2 +e$rooms, one +athroom, a ,itchen an$ front yar$= "his 'ro9ect has +een com'letely fun$e$ +y contri+utions from our em'loyees=

Health, Safety & Security

6C6 )a,istan has al%ays en$eavore$ to remain +est in class in terms of health an$ safety 'erformance measure$ throu0h 4e'orta+le 6n9uries for Em'loyees an$ Contractors 'er million hours %or,e$ an$ -ero !ccu'ational 4e'orta+le 6llnesses for the same 'o'ulation= Similarly, for 'eo'le security, our system re<uires that ris,s to em'loyees from security threats are assesse$, re$uce$, controlle$ an$ monitore$ in the %or,'lace, %hile $rivin0 on com'any +usiness an$ for visitors= 6n the same li0ht, %e strive to ensure that arran0ements are in 'lace for the a''ro'riate security of assets an$ information= )ro$uct security nee$s to +e maintaine$ from ra% material su''ly to 'ro$uct $elivery= &ase$ Safety, HSE&S 5ea$ershi' "rainin0 an$ follo%>u' on the Cor'orate *u$its 200A im'rovement 'lans %ere the ,ey strate0ic o+9ectives for 2030= Em'loyees? involvement an$ en0a0ement an$ role of to' lea$ershi' in HSE&S continuous im'rovement 'rocess are inte0ral in hel'in0 maintain to'>of>the>line 'osition in HSE&S 'erformance= &ehavior &ase$ Safety an$ HSE&S 5ea$ershi' "rainin0 have +een 'art of this $rive as *,-o.o+el Cor'orate 6nitiatives= &oth these im'ortant 2030 Cor'orate HSE&S )lan *ctions %ere successfully com'lete$= *nother hi0hli0ht of the year %as the com'letion of "o'30 4is, i$entification e:ercise for the com'any= "his ris, matri: is an inte0ral 'art of 2033 6m'rovement )lannin0 across the com'any=

)erformance !vervie%
6n 2030 there %ere t%o in9uries to su'ervise$ contractor em'loyees $urin0 the year= ;e ha$ a re'orta+le in9ury rate of 0=21 %hich is the same as last year actual= "his 'erformance is si0nificantly +etter com'are$ to the 'eer +usiness units %ithin the *,-o.o+el 8rou'= Health & Hy0iene assessment an$ monitorin0 'ro0ram %as ro+ustly 'ractice$ across the com'any resultin0 in a -ero 4e'orta+le !ccu'ational 6llness= !ccu'ational 6llness a+sence rate is mar0inally hi0her than 200A mainly contri+ute$ +y chan0e of +aseline $ue to )"* $emer0er= 6m'lementation of the *sset 6nte0rity 8ui$elines, roll out of &ehavior

#uture )lans
#irst cycle revie% of &ehavior &ase$ Safety )ro0ram an$ *sset 6nte0rity 8ui$elines im'lementation %ill +e the si0nificant items for 2033= Similarly, the vali$ation of emer0ency 're'are$ness %ill also +e hi0h on the cor'orate a0en$a= 2evelo'ment )lans for critical HSE resources %ill +e ste%ar$e$ $urin0 the year=

@ey )erformance 6n$icators

200A #atalities em'loyees "otal re'orta+le in9ury rate em'loyees/su'ervise$ contractors 5ost time in9ury rate em'loyees/ su'ervise$ contractors !ccu'ational illness rate em'loyees "otal illness a+sence rate em'loyees #atalities contractors (su'ervise$ an$ in$e'en$ent) "otal re'orta+le in9ury rate in$e'en$ent contractors 5ost time in9ury inci$ents in in$e'en$ent contractors C sites %ith &&S 'ro0ram 2istri+ution inci$ents Motor vehicle inci$ents %ith in9ury num+er /million hours /million hours /million hours C num+er /million hours num+er C num+er num+er 0 0=21 0 0 3=7A 3 0=(2 3 0 3 0 2030 0 0=21 0=34 0 3=A2 0 0 0 300 3 3 203( "ar0et 0 0 0 0 3=7/ 0 0 0 300 0 0

&4

#ustaina/ility 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

Case Stu$y

&ehavior &ase$ Safety

&ehavior>&ase$ Safety is a 'rocess that hel's em'loyees i$entify an$ choose a safe +ehavior over an unsafe one= Safety in the %or,'lace is a com+ination of three measura+le com'onentsG the 'erson, their environment, an$ their +ehavior= !nly %hen these three elements are com+ine$ can %or,'lace acci$ents +e eliminate$= &ehavior>+ase$ safety is +ase$ on four ,ey com'onents H * +ehavioral o+servation an$ fee$+ac, 'rocess H * formal revie% of o+servation $ata H 6m'rovement 0oals H 4einforcement for im'rovement an$ 0oal attainment &ehavior &ase$ Safety 'ro0ram %as initiate$ in the com'any in the secon$ <uarter of 2030= "he team $evelo'e$ trainin0 mo$ules an$ $evise$ strate0y for the im'lementation= Safety 6m'rovement "eams at all +usinesses %ere $esi0nate$ as the &&S )ro+lem Solvin0 "eams= !nce the &&S "eams %ere in 'lace ,ey o+servers %ere i$entifie$= 6t %as $eci$e$ to en0a0e an e:ternal consultant to im'art trainin0 to the o+servers an$ hel' im'lement &&S effectively in the com'any= "he consultant?s sco'e of %or, covere$ the follo%in0G H Hol$ trainin0 sessions %ith o+servers H 6m'art han$s on trainin0 to o+servers H Carry out follo% u' session %ith o+servers H *rran0e summin0 u' 'resentations +y +usinesses H )rovi$e assessment an$ fee$ +ac, to Cor'orate an$ &usiness HSE on 'ro0ress

"he trainin0 an$ follo% u' sessions state$ a+ove have +een successfully com'lete$ an$ all five +usinesses are no% &&S com'liant= Com'any%i$e vali$ation revie% is 'lanne$ in U3 2033 to ensure &&S is securely em+e$$e$ in our systems=

Environmental

Emissions Control
;e continue to monitor an$ mana0e atmos'heric emissions to ensure that there are no unacce'ta+le environmental im'acts an$ that local consent limits an$ re0ulatory 'ermits are fully com'lie$ %ith= ;e aim to re$uce our car+on foot'rint 'er ton of 'ro$uction +y 30C +y 203( in relation to 200A +aseline=

2030 !vervie%
Ener0y usa0e for 200A %as actually 0=A ta,in0 )"* into account= )"* %as $iveste$ in 200A H3 an$ the fi0ure of 3=3 $oes not inclu$e )"*= Similarly the 200A fi0ure for 'er ton 'ro$uction of ener0y relate$ C!2 of 0=/4 $oes not inclu$e )"*=

Ener0y Isa0es "era 9oule )er ton of )ro$uction ("9 / "e : 30>2) 200( 200/ 2007 2001 200A 2030 3= A 3= 2 3= 3=2( 3=3 3=04

Environmental )olicy
;e continue to follo% the *,-o.o+el Environmental )olicy com'risin0 of the follo%in0 featuresG 3) MeasurementG Measure an$ re'ort on cra$le>to>0ate +asis an$ mana0e car+on alon0 the value chain= 2) 4e$uctionG Ise a structure$ an$ consistent car+on re$uction a''roach, ali0ne$ %ith +usiness o+9ectives= ) Communication an$ a$vocacyG *ctively communicate an$ a''roach staff, customers, su''liers, investors an$ the 0eneral 'u+lic an$ encoura0e $ialo0ue=

#uture )lans
;e shall continue to focus on environmental 'rotection measures= "his %ill +e a si0nificant challen0e consi$erin0 the natural 0as availa+ility 'ro9ections for 2033=

)er ton )ro$uction of Ener0y 4elate$ C!2 200( 200/ 2007 2001 200A 2030 0=7 0=/A 0=/7 0=// 0=/4 0=/2

4) &est 'racticesG )romote activities to share 0oo$ 'ractice, 0enerate efficiencies an$ accelerate im'rovement=

@ey )erformance 6n$icators

200A C!2 emissions 'er ton 'ro$uction V!C emissions 'er ton 'ro$uction .!: emissions 'er ton 'ro$uction S!: emissions 'er ton 'ro$uction 2irect C!2 emissions (Sco'e 3) 'er ton 'ro$uction 6n$irect C!2 emissions (Sco'e 2) 'er ton 'ro$uction "e ,0/te "e ,0/te te ,0/te te ,0/te million te ,0/te te ,0/te 30(= 7 0=3( 3/3=2( 0=2 422=42 0=/3 34 3=40 2=0( 0=47 /7/=3 A,A07 (7= 2030 (2=(A 0=33 13=13 0=31 4 0=70 0=A 220A=33 4=7/ 0= A 1 4=70 2447=12 (= 203( "ar0et 4A=A/ 0=30 77=72 0=3/ 40A 0=1 24 0 4=A( 0= 7 7( 2 24=/( 4=7

&6

#ustaina/ility 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

;ater Isa0e
;ater mana0ement is a ,ey element in our sustaina+ility im'rovement 'ortfolio= Sustaina+le fresh %ater su''ly is critical for +usiness continuity an$ sustaina+ility= *s 'er the *,-o.o+el 2irectives an$ *m+ition, 300C of 6C6 )a,istan manufacturin0 sites are $irecte$ to have sustaina+le fresh %ater mana0ement system in 'lace= 200A & 2030 have +een s'ent in com'letin0 the fresh %ater mana0ement assessment usin0 the *,-o.o+el tool=

Perfor ance ,verview

"he a+solute %ater consum'tion in million m sho%s a re$uction= *0ain this is comin0 from )"* $emer0er= "he 'er ton consum'tion is mar0inally increase$ after incor'oratin0 a more com'rehensive %ater consum'tion re'ortin0 from Hea$ !ffice= *t 'resent 2(C of our sites have sustaina+le fresh %ater system= .oteG !ur re'orte$ %ater fi0ures for the year 200A an$ 2030 are +ase$ on *,-o.o+el $efinition, only #resh ;ater is re'orte$=

=uture Plans
"he im'rovement 'lans +ase$ u'on the ;ater Mana0ement tool %ill +e acte$ u'on to achieve 300C sustaina+le %ater sites +y 203(= @ater #ustaina/ility 200( 200/ 2007 2001 200A 2030 3/=2 34=A7 32=( 33=A2 A=1 A=A

8ey Perfor ance "ndicators

200A #resh %ater use YY'er ton 'ro$uction C sites %ith sustaina+le fresh %ater million m m /te C /=4A A=1 2( 2030 203( "ar0et 4= / 1=A 300

4=(A A=A 2(

Case Stu$y

Effluent "reatment )lant

*fter si0nificant re$uction in electricity an$ 0as consum'tion, our Chemicals &usiness successfully im'lemente$ another sustaina+ility initiative +y recyclin0 an$ reusin0 treate$ %ater from our Effluent "reatment )lant (E"))= )art of this recycle$ %ater is +ein0 use$ at our Chemicals 'lant to %ash vessels an$ floors, an$ the remainin0 %ater is +ein0 use$ at our a$9acent hea$ office 'remises for horticultural an$ cleanin0 'ur'oses= *+out (74 cu+ic meters (2AC) of our total E") %ater %as recycle$ from May to 2ecem+er 2030, %hich has re$uce$ our fresh %ater consum'tion, cut $o%n the environmental im'act an$ has also minimi-e$ HSE ha-ar$s associate$ %ith %ater tan,er traffic at hea$ office= "his initiative hel'e$ our Chemicals &usiness to meet our @)6 of re$ucin0 fresh %ater consum'tion in 2030= "he 'ro9ect commence$ in Lanuary 2030 an$ %as com'lete$ in March 2030=

;aste Mana0ement
Effective %aste mana0ement hel's to increase ra% material efficiency in our manufacturin0 o'erations, re$uces our environmental foot'rint an$ re$uces costs= 6t is our aim to mana0e %aste $is'osal res'onsi+ly an$ %e focus on %aste mana0ement usin0 the 'rinci'les to eliminate, re$uce, reuse an$ recycle=

2030 !vervie%G
*'art from the )"* $emer0er %hich mainly contri+ute$ to the variation, total ha-ar$ous an$ non reusa+le ;aste is hi0her $ue to the chan0e in classification of E") %aste at )aints &usiness turnin0 it into Ha-ar$ous ;aste= *lso, a+out 32 tons of E") slu$0e lyin0 %ith Chemicals &usiness, @arachi as inventory %as ta,en into re'ortin0=

;aste Mana0ement 200( 200/ 2007 2001 200A 2030 3=221 3=20( 3=371 3=374 0=027 0=00A(

#uture )lansG
!ur manufacturin0 sites %ill focus on incremental im'rovement focusin0 on 'rocess an$ 'ro$uct $esi0n im'rovement for eliminatin0 %astes at source an$ to fin$ more cost effective $is'osal roots=
.oteG the %aste fi0ures for 200A an$ 2030 sho%n in the 0ra'h are on the +asis of *,-o.o+el $efinitions=

@ey )erformance 6n$icatorsG

200A "otal %aste 'er ton 'ro$uction "otal ha-ar$ous %aste 'er ton 'ro$uction .on>reusa+le %aste 'er ton 'ro$uction Ha-ar$ous non>reusa+le %aste 'er ton 'ro$uction Ha-ar$ous %aste to lan$fill 'er ton 'ro$uction ,iloton ,0/ton ,iloton ,0/ton ,iloton ,0/ton ,iloton ,0/ton ,iloton ,0/ton 3A=03( 27= 2 0= 3 0=4( 0=401 0=(A 0=3(3 0=22 0 0

2030 4=432 A=( 0=(4 3=37 0=2A( 0=/4 0=2(3 0=(4 0 0

203( "ar0et 4=3A3 1=( 0=(3 3=04 0=210 0=(7 0=2 1 0=41 0 0

&8

#ustaina/ility 6C6 )a,istan 5imite$ *nnual 4e'ort 2030

)ro$uct Ste%ar$shi'
*s a com'any %e em+race 'ro$uct ste%ar$shi' as one of the ,ey mechanisms to su''ort our future Sustaina+ility= )ro$uct Ste%ar$shi' strives to achieve a sustaina+le an$ attractive +alance +et%een the inherent 'ro'erties of a chemical an$ the +enefits it 'rovi$es to all ma9or sta,ehol$ers throu0hout its lifecycle= )ro$uct Ste%ar$shi' )olicyG ;e aim to ensure that a 'ro$uct is $evelo'e$, manufacture$, 'romote$, $istri+ute$, mar,ete$ an$ ultimately $is'ose$ into the environment in a socially res'onsi+le an$ acce'ta+le manner %ith res'ect to HSE & S matters an$ it %ill +e $emonstrate$ that this is 'ractice$= 6n or$er to fulfill this res'onsi+ility 'articular attention shall +e 'ai$ toG H )rovision of a''ro'riate trainin0 an$ information to all our staff, contractor, su''liers an$ customers for han$lin0, correct usa0e an$ $is'osal of our 'ro$ucts an$ in a safe an$ res'onsi+le manner so as to minimi-e chances of in9ury to 'eo'le an$ $ama0e to thir$ 'arties or environment arisin0 from its use= H )ro$uct $esi0n, $evelo'ment of mo$ification to meet customers nee$s an$ to minimi-e HSE&S im'acts= 3= 6t 'rovi$es the same or +etter functionality for the customer a''lication= 2= ;hen assesse$ alon0 the full value chain a0ainst the follo%in0 criteriaG H Ener0y efficiency (consum'tion) H Ise of natural resources/ra% materials H Emissions an$ %aste H "o:icity H 4is,s (for acci$ents $urin0 'ro$uction, trans'ortation etc=) H 5an$ use, if a''lica+le a) 6t is si0nificantly +etter in at least one criterion +) 6t is not si0nificantly %orse in any other of the criteria

2030 !vervie%G
;e are 'lannin0 to%ar$s esta+lishin0 an Eco>)remium )ro$ucts tar0et= *t 'resent, %e $o not have a monitorin0 mechanism ho%ever %e are %or,in0 %ith 'arent com'any to $evelo' 'roce$ures an$ metho$olo0ies aroun$ this= 6n 2033, %e %ill +e a+le to re'ort more 'ro0ress= "ar0ets an$ measure for 2030 an$ 203( are therefore not re'orte$=

H *ll $ata on our 'ro$ucts an$ its use shell +e ma$e availa+le to our customers an$ users in or$er to 'romote sustaina+ility= H H )roce$ures that ensure fee$+ac, from customers on our 'ro$uct usa0e an$ 'erformance= Evaluation of su''liers an$ their re0ular assessment to ensure consistency %ith the HSE&S 'olicy=

#uture )lansG
H 4&2 / Mar,etin0 / Sales for Eco )remium )ro$ucts H &uil$in0 Sustaina+ility into )urchasin0 (Su''lier Su''ort Visits) / *,-o.o+el Ven$or )olicy im'lementation H )ro$uct Ste%ar$shi' 6m'rovements

H Com'liance %ith the a''lica+le local la%s,re0ulation an$ stan$ar$s= Eco )remium solutions are an am+ition in line %ith our )ro$uct Ste%ar$shi' )olicy= Eco>'remium solutions hel' to create value for our +usiness an$ our customers= "hey 'rovi$e to' line 0ro%th o''ortunities +ecause of im'rove$ 'erformance in areas such as ra% material use, manufacturin0 'rocess an$ 'ro$uct innovation= * 'ro$uct <ualifyin0 for the list of Eco> )remium Solutions must meet the follo%in0 criteria, %hen assesse$ a0ainst the com'etin0 mainstream 'ro$uctsG

@ey )erformance 6n$icatorsG

200A )ro$uct Eco>'remium solutions C sales > 2030 > 203( "ar0et >

6C6 )a,istan 5imite$ *nnual 4e'ort 2030

#ustaina/ility

&0

Ener0y Efficiencies
!+9ective
;e aim to $rive ener0y efficient o'erations to im'rove o'erational eco>efficiency of our manufacturin0 'rocesses= ;ith ever increasin0 cost of ener0y, the focus is 0oin0 to 0et shar'er an$ the tar0ets are 0oin0 to 0et tou0her= ;e have initiate$ an PEner0y an$ 6nnovation #orumF com'risin0 nominees from all +usinesses an$ hea$e$ +y Cor'orate "echnical & En0ineerin0 2e'artment (C"E2) to achieve $efine$ o+9ectives an$ tar0ets for 0reener o'erations at all sites=

2030 !vervie%
!verall 'erformance in unit terms is of the same or$er as re'orte$ last year= !n li,e to li,e +asis (e:clu$in0 ))"*), the ener0y consum'tion an$ C!2 emission (ener0y relate$) %ere (= C an$ C lo%er as com'are$ to 200A=

#uture )lans
;e aim to focus on ener0y conservation at our main office locations in 5ahore an$ @arachi=

@ey )erformance 6n$icators

200A "otal ener0y consum'tion 'er ton 'ro$uction 3000"L 3000 "L/te /=4A/ 0=00A 2030 4=1 0=03 203( "ar0et 4=(/ 0=00A

Case Stu$y

4everse !smosis
4ecently our So$a *sh &usiness successfully commissione$ its 4everse !smosis (4!) %ater 'urification 'lant= "his ne% 4! 'lant has com'letely re'lace$ the ol$ %ater 'urification 'lant %hich %as +ase$ on an o+solete, maintenance intensive an$ inefficient technolo0y= "his chan0e %ill hel' 6C6 to cut $o%n on ener0y consum'tion an$ re$uce our car+on foot'rint, in line %ith *,-o.o+el?s sustaina+ility vision= 6t is im'ortant to note that the 4! 'lant has accom'lishe$ 0C %ater re9ection, meanin0 each an$ every $ro' of the %ater 'rocesse$ throu0h the 'lant is +ein0 utili-e$ in one 'rocess stream or another=

S"*.2*42 26SC5!SI4ES )*4" 6G )rofile 2isclosures

)rofile 2isclosure 2escri'tion Cross>4eference

Strate0y an$ *nalysis

3=3 3=2 Statement from the most senior $ecision>ma,er of the or0ani-ation 2escri'tion of ,ey im'acts, ris,s, an$ o''ortunities= *4 )a0e 0 *4 )a0e 2

!r0ani-ational )rofile
2=3 2=2 2= 2=4 2=( 2=/ 2=7 2=1 2=A 2=30 .ame of the or0ani-ation= )rimary +ran$s, 'ro$ucts, an$/or services= !'erational structure of the or0ani-ation, inclu$in0 main $ivisions, o'eratin0 com'anies, su+si$iaries, an$ 9oint ventures= 5ocation of or0ani-ation?s hea$<uarters= .um+er of countries %here the or0ani-ation o'erates, an$ names of countries %ith either ma9or o'erations or that are s'ecifically relevant to the sustaina+ility issues covere$ in the re'ort= .ature of o%nershi' an$ le0al form= Mar,ets serve$ (inclu$in0 0eo0ra'hic +rea,$o%n, sectors serve$, an$ ty'es of customers/+eneficiaries)= Scale of the re'ortin0 or0ani-ation= Si0nificant chan0es $urin0 the re'ortin0 'erio$ re0ar$in0 si-e, structure, or o%nershi'= *%ar$s receive$ in the re'ortin0 'erio$= Cover *4 )a0e 44>7 S4 )a0e 04 6nsi$e &ac, Cover S4 03 S4 )a0e 03 *4 )a0e 0/ *4 )a0e 21 *4 )a0e 44>7 S4 )a0e 03 *4 )a0e 3/>2 *4 )a0e 4

4e'ort )arameters
=3 =2 = =4 =( =/ =7 =1 =30 =33 =32 4e'ortin0 'erio$ (e=0=, fiscal/calen$ar year) for information 'rovi$e$= 2ate of most recent 'revious re'ort (if any)= 4e'ortin0 cycle (annual, +iennial, etc=) Contact 'oint for <uestions re0ar$in0 the re'ort or its contents= )rocess for $efinin0 re'ort content= &oun$ary of the re'ort (e=0=, countries, $ivisions, su+si$iaries, lease$ facilities, 9oint ventures, su''liers)= See 846 &oun$ary )rotocol for further 0ui$ance= State any s'ecific limitations on the sco'e or +oun$ary of the re'ort (see com'leteness 'rinci'le for e:'lanation of sco'e)= 6 &asis for re'ortin0 on 9oint ventures, su+si$iaries, lease$ facilities, outsource$ o'erations, an$ other entities that can si0nificantly affect com'ara+ility from 'erio$ to 'erio$ an$/or +et%een or0ani-ations= E:'lanation of the effect of any re>statements of information 'rovi$e$ in earlier re'orts, an$ the reasons for such re>statement (e=0=,mer0ers/ac<uisitions, chan0e of +ase years/'erio$s, nature of +usiness, measurement metho$s)= Si0nificant chan0es from 'revious re'ortin0 'erio$s in the sco'e, +oun$ary, or measurement metho$s a''lie$ in the re'ort= "a+le i$entifyin0 the location of the Stan$ar$ 2isclosures in the re'ort= Cover S4 )a0e 04 S4 )a0e 04 S4 )a0e 04 S4 )a0e 04 S4 )a0e 04 S4 )a0e 04 S4 )a0e 04 S4 )a0e 04 .* S4 )a0e 3/>20 S4 )a0e 23

8overnance, Commitments, an$ En0a0ement

4=3 4=2 8overnance structure of the or0ani-ation, inclu$in0 committees un$er the hi0hest 0overnance +o$y res'onsi+le for s'ecific tas,s, such as settin0 strate0y or or0ani-ational oversi0ht= 6n$icate %hether the Chair of the hi0hest 0overnance +o$y is also an e:ecutive officer=
S4G Sustaina+ility 4e'ort 6C6 )a,istan 5imite$ *nnual 4e'ort 2030 #ustaina/ility %&

*4 )a0e 2/> 0 *4 )a0e 2/ & 21

*4G *nnual 4e'ort

)rofile 2isclosure 4= 4=4 4=34 4=3(

2escri'tion #or or0ani-ations that have a unitary +oar$ structure, state the num+er of mem+ers of the hi0hest 0overnance +o$y that are in$e'en$ent an$/or non>e:ecutive mem+ers= Mechanisms for sharehol$ers an$ em'loyees to 'rovi$e recommen$ations or $irection to the hi0hest 0overnance +o$y= 5ist of sta,ehol$er 0rou's en0a0e$ +y the or0ani-ation= &asis for i$entification an$ selection of sta,ehol$ers %ith %hom to en0a0e=

Cross>4eference

*4 )a0e 34 & 3( *4 )a0e 2A S4 )a0e 07 S4 )a0e 07

S"*.2*42 26SC5!SI4ES )*4" 666G )erformance 6n$icators

Economic
EC1 ECA 2evelo'ment an$ im'act of infrastructure investments an$ services 'rovi$e$ 'rimarily for 'u+lic +enefit throu0h commercial, in>,in$, or 'ro +ono en0a0ement= In$erstan$in0 an$ $escri+in0 si0nificant in$irect economic im'acts, inclu$in0 the e:tent of im'acts= *4 )a0e / S4 )a0e 32 *4 )a0e / & /0 S4 )a0e 32 &3

Environmental
E.2 E./ E.3/ E.37 )ercenta0e of materials use$ that are recycle$ in'ut materials= 6nitiatives to 'rovi$e ener0y>efficient or rene%a+le ener0y +ase$ 'ro$ucts an$ services, an$ re$uctions in ener0y re<uirements as a result of these initiatives= "otal $irect an$ in$irect 0reenhouse 0as emissions +y %ei0ht= !ther relevant in$irect 0reenhouse 0as emissions +y %ei0ht= *4 )a0e (/ S4 )a0e 37 *4 )a0e 40 S4 )a0e 3/>20 *4 )a0e 37 S4 )a0e 3/ S4 )a0e 3/

SocialG 5a+or )ractices an$ 2ecent ;or,

5*4 5*7 5*30 5*33 )ercenta0e of em'loyees covere$ +y collective +ar0ainin0 a0reements= 4ates of in9ury, occu'ational $iseases, lost $ays, an$ a+senteeism, an$ num+er of %or,>relate$ fatalities +y re0ion= *vera0e hours of trainin0 'er year 'er em'loyee +y em'loyee cate0ory= )ro0rams for s,ills mana0ement an$ lifelon0 learnin0 that su''ort the continue$ em'loya+ility of em'loyees an$ assist them in mana0in0 career en$in0s= S4 )a0e 30 *4 )a0e 43 S4 )a0e 34 *4 )a0e 43 *4 )a0e 42

SocialG Human 4i0hts

H44 H4( H4/ "otal num+er of inci$ents of $iscrimination an$ actions ta,en= !'erations i$entifie$ in %hich the ri0ht to e:ercise free$om of association an$ collective +ar0ainin0 may +e at si0nificant ris,, an$ actions ta,en to su''ort these ri0hts= !'erations i$entifie$ as havin0 si0nificant ris, for inci$ents of chil$ la+or, an$ measures ta,en to contri+ute to the elimination of chil$ la+or= S4 )a0e 01 S4 )a0e 01 S4 )a0e 30

SocialG Society
S!2 S!( S!7 )ercenta0e an$ total num+er of +usiness units analy-e$ for ris,s relate$ to corru'tion= )u+lic 'olicy 'ositions an$ 'artici'ation in 'u+lic 'olicy $evelo'ment an$ lo++yin0= "otal num+er of le0al actions for anti>com'etitive +ehavior, anti>trust, an$ mono'oly 'ractices an$ their outcomes= *4 )a0e 2A *4 )a0e 21 *4 )a0e 2A

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A publication of t2e 4orporate 4ommunications C Public Affairs 3epartment +4+ Pakistan Limited < (est (2arf 9arac2i1 )%000 Pakistan : DE2 21 ;2;1;)1)#22 0 DE2 21 ;2;1 1);E 7> ccpapakistanFakzonobel5com 1akzonobel5comGpk 3esi/n Adetude Pri.ate Limited Printin/ Hamzam 7nterprises

+4+ Pakistan Limited is no

part of t2e AkzoNobel

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AkzoNobel +s t2e lar/est /lobal paints and coatin/s compan- and a major producer of specialt- c2emicals5 (e suppl- industries and consumers orld ide it2 +nno.ati.e products and are passionate about de.elopin/ sustainable ans ers for our customers1

8ur portfolio includes ell kno n brands suc2 as 3ulux1 Sikkens1 +nternational and 7ka1 6eadIuartered in Amsterdam1 t2e Net2erlands1 e are a Global 0ortune <00 compan- and are consistentl- ranked as one of t2e leaders on t2e 3o Jones Sustalnabilit- +ndexes1 (it2 operations in more t2an =0 countries1 our <<1000 people around t2e orld are committed to excellence and deli.erin/ :omorro *s Ans ers :oda-:"