1 agiNG Es — 1 yRoM THE HOUSE YNorpy, 1966 Ping Coen that started in ~ pur over 50 ike it has been forever out every morning to collect fresh farm milk - so that we continue to bring you Nurpur’s home grown promise of natural freshness & purity fauji foods ormety Noon Patestan Unitedft 6 et TABLEOF «jj CONTENTS Ba Corporate Information se 67 Profile of the Board 813 Chairman's Review 14 ‘A Word from the Chief Executive 15 Notice of Annual General Meeting 16 Directors’ Report to the Shareholders 17-21 Statement of Compliance with the Best Practices of Corporate Governance_ 22.23 Financial Highlights -— 24-25 Performance Overview . a . 26-27 Patter of Shareholding Form 34 Ordinary Shares .____ 28-29 Pattern of Shareholding Form 34 Non-Veting Ordinary Shares ___ 30-31 Auditors’ Review Report on Corporate Governance.__ _ _ a-- 8 Auditors’ Report to the Members . 33 IE OE mts pee eines msncnonenaiat cE 34-35 Profit and Loss Account . - 36 Statement of Other Comprehensive Income _— 37 Statement of Changes in Equity ss se - 38 Cash Flow Statement __ 39-40 Noies to the Financia! Statements. - 41-88 Form of Proxy in English 89-90 Form of Proxy in Urdu — _ — _ . 91-92 informational message “JamaPunji: a 93 Directors’ Report in Urdu - 94-95 Notice of Annual General Meeting in Urdu — = 96 ANNUAL Hane ie 2016Visiones Ae ” e£3 ~ fauji foods C Board of Directors Chief Financial Officer LtGen Knolls Nawaz Khan - Chairman ‘Syed Aamir Ahsan HM), Sitara+-Esar, (Retd) LiGen Muhammad Haroon Asiam-CE&ND Company Secretary KM), 8.1, (Retd) Brig Rizwan Rafi 4 ‘SIM, TL (Poti) LtGen Shafqaat Ahmed Hunn, (ets) Auditors KPMG Taseer Hadi & Co. Mall Adnen Hayat Noon Ailepadcabe Mr. Qaiser Javed Dr. Nadeem inayat Dr, Rashid Baja Mr, Salman Hayat Noon, Brig Raashid Wali Janjua, SI(M), (Reto) LtCol Abdul Khaliq Khan (Feta) Mr. itifat Rasul Khan Mr. Par Sodertund Corporate InformationLegal Advisers Homid Law Associates Audit Committee Mr, iat Rasul Khan Mt, Qaisor Javed Dr, Nadeem Inayat Malik Adnan Hayat Noon HR & R Committee Dr. Nadoem inayat Dr. Rashid Baja Brig Reashie Wall Janjua, Sit), (Rete) LtGol Abdul Khaliq Khan (Feta) Technical Committee Brig Rashid Wali Janjua, Si), (Fetd) Lt Col Abdul Khaliq Khan (Retd) Dr. Rashid Bajwa Business Review Committee Dr, Rashid Bajwa, De. Nadoom inayat ‘Mr. Salman Hayat Noon (Wr, Par Soderlund Bankers Habib Bank Limited United Bank Limited ‘National Bank of Pakistan, ‘Bank Alfalah Limited Faysal Bank Limited ‘The Bank of Punjab NIB Bank Limited MCB Bank Limited ‘Askari Bank Limited Allied Bank Limited Bank Islami Pakistan Bank Al Habib Limited ‘Dubal Islamic Bank Pakistan Limited Pann Leal aes 2016 Registered Office Floor, Balvia Complex, 103 4B ‘Shahrahse-Quaid-e-Azam, Lahore. Toi: 492.42-00205033-34 E-mail info @faujioods com Shares Registrar (Mes Conpink (Pvt, Limited Wings Arcade, 1-K, Commercial, ‘Model Town, Latvore, Tel: $92.42-35916714, 35910719, 35609162 Fax: +92-42-95869037 E-mait shares @ coppink.com pk Website Plant Bhawal Distot Sargodha,Ne 20) 3) Gen Khalid Nawaz Khan HIN), Sitarai-Eear, (td) Chairman Lt Gen Khalid Navas Khan HllM) StarareEsat (eld) was commissioned inthe Falisian Aumy On 20 Apa 1975 with the covetad Sword of Honour. The Gororal Otioer has 2 vast ane vaned ‘caperience in vatious ‘capacities “on Sammand, "Stal and. siructonal assignments whieh include commend of an Infanty Dvision ard a Corps depioyed along the Line of Conti The General nas ase remains a2 Comma: dant of the prestigious Command and Stat Collage Gueta, in seston to having served on the facutes of School of inentry, Command ard Sia College and Natonal De'enca Unvesiy. He Graduate of Anmad Fereas Wer Coliags (National Defence —Universty) ard ‘Command and. General Slat? Calege, Fort Leaverworin, USA. Tne Genaral Oiees Raid Masters Degraes in War Shusies, At ard Science of Warfare ard Geren Susies Incecomrition othis merioious services, he hae boot awarded. Hil-eIniiaz (ilitary). The Genera! Offear was also conferred ugon the award of Stara-rEs- ar for ni leadership ole in the afteath af the devastating 2005 Earthqueke in ‘Azad Kesh He's an avid got. Besides boing the Managing Director of aul Foundaton, tne General Officers ‘the Charman of tha Boaras of Decors of Fauj Fertizar Bin One Lind Faui Fertize: Company Linted, Mer Petoleum Company “Limted, rau Cement Company "Limited. "Asker Cement Limited, Askari Bank Limo Fauj Kabra Power’ Company Limited, Onarkt Power Holaings Liied, Foundation Power Company (Dherk) Lites, FEC Enercy Lented, Founda tion Wied Energy & I, Feu 01 Tern al ang Dietoutiony Gompany Limited, Faui Akbar Porta. Marine Terminals, Fay Meat Limited FFU Foods Lined, FFaui Foods Limited and Fou Froon Fieeze Lied (Addeess: Fuji Foundaton, 68 Tips ed, Fawalpna LtGen munammac Haroon Aslam Hi(u), 8.8%, (Reid) CE & MD LL Gen Muhammad Haroon Aslam, HK), SBI, (Rel), Ie the Chiel Execulve and Mangan Dvector o! Fauj Ferticzar Bln Gasim Limes. FFBL Food Limited Fai Meat Limied, FFBL Power Company Limited and Fav) Foods Limited The General Oficer has 40 years of mertorous Imitary earear ib his erect. A. highly decorated officer with sick and varied experince of commang, start anc insiuc- fional assignments, He is a graduate of Command. and Stall College Quots elance Services Command and Stat! CColege Bangladesh and National Detense Colege (War Wing). now National Detence University, islamabed, He holds Master decrees in Detence Stuaios and Peliteal Science, The oficer has vast infematonal exposure including foreign training, assignments ard appoint ment in United Wetions Mssicn Commanded a Corps and satved as Choi ‘of Logictioe of Pakistan Army. Ho is heldin hgh esteem fer his operatonel planning ‘and combat achievamenis, He has been ‘nthe laouty of National Dofenee Unwver Sty. As OZO ard Deputy Chakman of Earguake Reconstruction ang Renabil tation Auhorty (ERR), he was engaged im planning and managemert of nigh Proll consrucion and renabiation roe. In recoantion of his outstanding Sonica, he was awarded Hisheintiag (Wiitar) and Sitara-iBasalat Besos being Director ana Gneirman of Manage: rent Commitee of Pakistan Maroc Phesphore (PMP), Morocco, hei alo on the Board of folowing enties- + Foundation Wind Energy * Founeation Wind Energy ‘askan Bank Linted A-Cened rector who remains angaged in-networkng wih Jeadng protessional aminar” erganizare, moet important, International Fertize Associaton (IPA). ‘Amencan Management Associaton (AMA), Dairy Business Assocation and FAB Forsizee, (Adciess; Fauji Fertizer Bin Qasim Lined Plot no C-1,C-2 Sector: Jinnah Boulevard DIA, Phase, slamabad) LtGen Shatgaat anmea HM), (Rotd) Director Lu Gon Shatgeat Ahmed, HIM), (Reid) ie Chiot Executive & Managing Drector of Fauj Fetzer Company Lined, FFC Energy Limtex anc Faut Frosh n Freeze Limied and also holds dector tp on the Boards o!felowing + Fauji Feliz Bin Qasim Limied 1 Aska Bank Lites * FBL Foods Limied + Fay Mat Lined “ FFBL. Power Company Limited + Pakistan Maroe Phosphor S.A He ie Chairman of Sora Welfare Feundaton 'SWWE) anc a mombor ofthe Boats of Govemort of Founcaton Univeral, Isamabad as wel The Gonorel was commissioned in Pakistan Anny in October 1975. Buting his service n he Amy, ne had been employed on vareus prestigious cermand. staf and. insructonal osigrmante, Climax of hie nearly four docacos ofrmltary earear was command of asttke cos: He is greduate o! Command ard Staff Colego Quetta, National Deloree UniverlyIsiamebed, Ecol Eiat Major Compggne, France and Ecole Miltae Pars, France. He also holds Master Dagioe in War Stushoe and Clase & Intrpretor ship in French language from the Navona! LUnveraiy of Modem Larquages tsamabac and Speaks French lenguage fluent He had the Foncur of serving as Pakistan's Defense and Miltary Attache to USA from 2002 10 2008 nih concurrent acereatation te Canada fra Argentina, He also served as Miltary Secre ‘ary 19 be Presdenr of PaKstan trem 2009 10 2008. During this period he partcipated. in number of inomatoral lorume notably, UN General Assembly Inaugural Session of 2006, NAM Summt in Guba, O1G Summit in Saudia Nabia, Wore Econeme Forum Davos Swizor land. ECO. Summit at Shanghai Choa. The General has partoipaied in bisteral meetings along wine President c& Pakisan with rumnber of Heads cf State He served on ine lacuty of Command ard Stat College Quetta and Nettonal Defence Unversity flamabed Since his rarament he 00 mo honorary faculty of Naienal Defence Unversity AS 2 sonior Mentor. He also pariopatad in te US Pakistan Sarior Miltary Leadership Seminar. le has been awered Hilal (Miltary) 2nd also conloned upon te award of Legion of Mert by the US Goverment in promoting blateral US Pakstan milzary relations. (Adress: Fau) Feriizer Co. Lid 186-The Mal Rawalpind) 2016Bw fauji foods Ferary Noon akstan Lead ‘Malik Adnan Hayat Noon Drecior Matic Adnan Hayat Noch is an elocted Imenter of the Company Board since 2008. Natk Adran Hayat Noch studied at Altohson Colege, Lanore, Patistan from whore he went on to frien he schooling at Milfeld School, England His later education ook place at Buckingnam Unwersiy in England in 1997, Mak Adnan Hayat Noon neceme fr0 of the youngost members of the Natoral Assembly of Pakistan, He also served on the hndusties Committee of tho National Assombly. Malle Adacn Mayat Noon was appoinlad as Chairman’ EO of Noca Sugar Mis Limited by the Daido drectors afta he sed demise of his father during May, 2014. He is also amber of the hoard o! diectors of seven oer companies (address: 4 = Saenar Road, Lahore Cant) Mr. Qaiser Javed Director Mr. Quisor Javed is a Fellew Nember of Instiue of Chartered Accountares of Pakistan and Irstiute of Taxation Managemen o! Pakstan, He joined Feuj Foundation in 1076. Precerly he holding the postion of Drecior Finance. He is alo a member of Board of Directors of al subsiciary and associate companies of Fauji Founcaton, Huo Power Compary Lis. and Pakictan ‘Maroc Prosphore 8.8 |PMP). In adaion to being @ Director on the FFBL Board hele also the Chairman of Ate Comm (Address: Fay Fourdation, 68 Tips oad, Rawaipd Board of Directors Dr. Nadeem inayat Drector Dr Nadeem Inavat is an oustancing professional, having rich experience in managing, operating and adising Investment portato to top tot Banks and organizations of the Courtty at sonicr level Preserty he is holcng the position of Curorate Advisor and Head of investment Division in Fauj Feursation, He is member ‘ot FEL Boant of Direstore since July 2605. He is also 2 member ct Boara of Directors of al suskdavies and assocleted comparies of Faul Foundation and Pakistan Maroc Phospnore S.A. \Adcress: Fauii Fourdation, 68 Tips Fad, Rasaipinl)‘ANNUAL sees 2016 Dr. Rashid Bajwa Brig Raashid Wail Janjua ‘Nr. Salman Hayat tNcon Ditector Si(W), (Rete) Director Director Dr Rashid Bajwais'@ MBAS, Gold Medalist Joined the Boavd of Faull Feods Limited. on Nr, Salman Hayat Noon after completing and Collage color Nolet of King Eqvard Ap Z6, 2016. He § Drector Panning and Nis educational Atchison College, Lahore Medicel College as wel ae Biatincton win Development. Fauj Foundation and is on and UK. jinad the Board of Dreciors of HM Queens commendation in MPH the Board of folewne Fauji Group's Noon Pakstan Limited as an Execute Atel insttuie for Healt, University of associated comtpanes: Director fed, UK. He is alsa MO, ECFMG. USA. activites ofthe compary. He was elected He nas Professional experence ot by the Board as Chaiman end CEO in Develepment specalst with orperiorce of x non-profit corporate sector and, cr Hayat Noon. Salman Hayat is also 2 Government Hels Founcing member ofthe Director of Noce Sugar Mile sino 2005, organization NASP Wiero fares: Bank and is heading its Auct Committ. In Norvproft Corporate Sector hit fdgtton, he Holds the Directorship of Executive Officer, Natonal Aurel Support seven other companies of Noon Grou, Programme (NASP) 1996 to date. He worked as Senor Advisor of Khushaali Bank Pakistan from 2000 19 2003. Also working as a Difector win diferent Non Proit Organizations. Heis Ex Member Hehasadversigd avi engineering project of Civi Senice of Pakistan (OMG) 1966 #nagement experience spanning over 25 1980, working at all levels of the Yeats. as Commande: Comp Cnaneon om Director Works and Chief Engneer Navy. He has planed and executed mejor cul fengineenng piogets at Karachi Lenore, Islamaved ard soastel bah in cbse coortinacn with the Engineer-in Chiefs in 2001 to ovorsea tho day to day + Fay! Foods Lid “Fay Fertzer Co Lid + Fay) Fertizor Co Energy Lis + FaujiPertizes Bin Qasim Power Co Ltd + Fauji CamentCo Ltd “aji Abbar Porta Mating Terminal Lie + Mav Patroieum Co Ltd ‘Foundation Powe: Go Dnata Lie + Foundation Wind Energy IL ination Wind Energy ~ (Pvt) Lik + Faujiniewavest Food Lia 1 ater the sac demise o! Maik Naz: (Aedrane: - Sarwar Road, Lahoro Cant) ‘Government viz Deputy Chief, Planing & Development, None areas and Alster: Commiasioney’ Deputy (Commissioner trom 1988 to 1993, cine as a Director wih Fail FetizerBn Branch. He also has extensive experience (asm Limited win efect fom 25m Aug °F werlng_with averse natioral_ ard one inmaticnal ald agorces cn esonstucn and ehaeitaion proeztein an Earhquako He also atonded ‘oloning lnvemational _sWeKen area ater 2005. Training He holds Chi Engineering Dagees rom + mize Finance Training, University of itary Colege of Ergneeing ana Masters Dons Wicca degen Socunty and Detence + Enverpise sis deveooinent 160 Management tom Royal Mitary Colege Kingston, Canada, He's also @ graduate of Command and Staf Crllege Quetta and National Deferce Unversity Islamabad. traning conta, Turn, aly 2004 + Financal manegement for non profes F IPED , Kennedy Seheot of Government, Hawvard University, USA 2007, (Adress: Faui Foundation, 88 Tipu Road, Rawaipind) (Adaress; House No.46, Aga Kan FD=d,£3 fauji foods Ferree oon ek Ltd Lt Col Abdul Khaliq Khan (Retd) Director LL+Col Abdul Khata Khan (Reid joined the compary #2009 and Is working as ‘executive drector and bosams member of ‘tne Board on 30 May, 2017. He aso werkes fer 9 years in Pieneer Cement as ON Aeiminsteation ‘Abéul Khaliq graduated trom Pakistan Miltary Academy Kakul and holds Masters Degree in International Relations, He mas ‘commissioned in Pakislan Army in 1975 ‘and aller serving for 25 years In Pakstan Army at various Command and Stall aopontments gol reed from Amy in 2000. Busing military service, he hada vast and diverted experence in eperational human ranagemant, sssetement ard evaluation ambition, resource ‘Abdul Khala has atterded sevaral courses, taining progams ano workshops on various eubjocts (Addroso: A Seewar Road, Lahore Cant) Mr. Iifat Rasul Khan Director Me Ifa: Rasul Khan (PK) ea UK qualified (Ghaterea Accounint win over 48 years of Work exparienco. He camnad hie Bacher of Commerce wth Honors tom Unversity of Punjab, Lahore 1862), and cid hs Chartered Accountancy ftom the Insitute of Chavired [Accountants in England and Wales (ICAEW) in 1063. He io a Folow Member of both the ICAEW and te incitute ef Chatered Accu lass of Paiistan (1972). His professional feperionce includes rine (@) years 9. UK working wit the fkms of Chaneres Accour- tants (B Heley & Cor and Pest, Mervich Micrel & Co. presently KPNG): twenty-nine (28) years wih Fay) Foundation Pakistan halding senior positons, including eight (@) years as Octo Finance of the Group; ard ton (10) years wth Patten Poverty Allovia tion Fund (PPAF) as Chiet Fnarcial Officer / Corporale. Secretary. IAK hae extensive experience of dealing wit local ar invema- tional banks; rublatora tnarcinginstutons, ard export credit egension. He hae euooeas july nagotated numerous project financing arrangements. IK is former member of Board of Directors of tha ftoning companies: + Fayji Fenlizee Company Limitec * Mari Gas Company Linte + Fayj Fertizee Bie Qasim Limited + Faull oment Company Limited + Life Line Lites + Fayji Ol Terminal and Distouion Company ume + Fauj Kabila Power Compeny Limited + Fauji Software Company Limitee He is also a former Government Nominee Dieetor on the Islamabad Stock Exchange Beard. The frst ‘our companies are Isteo cr Ihe Stock Excranges in Pakistan (Addess: House No: 23 A Steet No 3; Sector Fi; Islamanac) Mt. Par Sedertund Diector lie Par Soderund is the Founcer and GEO ef Pertus Farm ONC, based In Dubsl, UAE. He leeds a taam of faming specalsts as an investorcerine ey for day farming, moat tatenirg, ane frege producticn, Mr Sdesund hes seem 26 years along the value chan afmiksaes,procossing 4 packaging ayy rik production and foetier production. Ho worked 20 yoars ity Tetra Pak as a Managing Direc in counties the len, Estonia) Latvia! Luithuaria, Swizerand ard Pakistan Dirieg his years 2094-2007 ae Managing Dvecior for Tera Pak PaXisian, ine busirose increased tives Sree and Tete Pak Pakistan was awarded Marke: Company of the year 2006, During tie Fetiod, ne was also responsible for Commercial Operations forthe 27 Tetrs Pak market companies in Midole East. Belore moving w Cuval hn 2004, Ut Soeriund was View Prosdant Commercial Operations, Tera Pak Europe Alrica from 19982004 renertng to Group C00, orerooking USD 4 viion in sales and 52 market companies rasponsite for sales, gooal commercia ‘complanoe and reverue manegerent. In 008 ne joned Al Fasalan Group, Riyadh and bosare Managing Director {or Al Sal the word's largest integratec ‘alr farm, as well as board member ‘or A. Sa Oanone for GOS. in 2011, pe stanee Pritus Farm DMCC with main setts in “lwkey ard Pakistan. Pontus Farm NCC has a compary lor forage praducton based in Lanore and Pertus ‘edgar teem ie working with @ numberof large dairy arms in Pakistan, (Acdress: Dube, UAE, Novela, PO.Box 5457)‘Syed Aamir Ahsan (Chief Financial Oticer Syed Aamir Ahgan.f curently sewing a= CChiet Financia Oficer! General Manager Finance in FFBL. He isa giadunte from the University of South Floida and Cortied Pubic’ Amcouniant (OPA) fom the Universiy of tlinois, USA, He has a rich professinal experence ot over 23 years with 22. years in feriizer business. in Pakistan. After returing from USA. he Joined Engro Chemical Pakistan Lined land served with them in various cepacties wom 1983 102002. Ho joned FFBL in 2002 and i his 0! as ChietFinsnsial Ofc, he suvcesstuly managed nancial restructuring 0! FFBL with GoP in his easly aye wih the Company and all financial Jeasbilties and projec: phase of Pakcstan Maroc Phosphora, SA (PMP), He hac extensive experiences of | managing finances, budyet, tax planning, investor ralatons anc aucit. He also plays leading ‘ole in the Information Technolegy |) Operations, and HR toams, He is on the Beard of following rites: + Fauji Meat Limited ‘ FFBL Foacs Limes ‘ FFBL Power Compary Limited (Address: Fauj! Ferilizer Bi Qasim Lid Plot No. C-1, ¢-2, Sector B, Jinnah Boulevard, OMA, Fhase-l,isamabac) Brig Rizwan Rafi Si(M), TB1, (Reta) Company Sacretary Bra Flewan Fat SI), T.Bt (Rete) the ‘Gompeny Secretary and Resident Manager of Faull Foods Limiled, The Oificer nas joined ine Company as Company Secretary in Auguei 2016. The Offcorhas'H years of meritorious miltary career io hs credit. He is higHty professional with varied exper fence ef Commane, staff and nstructional assignment twoughout his career. He graduate of Corman and Stat College ‘Questa and Natonal Defence University Islamanes. In evognition of his mestorious services, he ha been awarded Sitaro-mtiaz (Miltary) land Tamgha-e-Bisalat The Oficer also holds Maotere dograein Dotoncs and War Stuckes Asrose: tr Floor, Baba Complex Tower, 108 A/8, Shanratwe-Quar-e-Azar, Lahore.) ANNUAL i320)s3m 2016RB fauji foods Former Non Pakistan Linos CHAIRMAN’S REVIEW lam delighied present the arnual repo of Foods Linted for he pered ended 31 Decorhar 2016 Onbshaf of he board of reclots of Faujl Foeds Limted, | am pleased to anncunce the ‘successful completion of rewly revamped ard atate ofthe ert Fay Foods Limitad cary processing tacliy at Bhahnal.kgivasme gueat satotacton that Fay Foods Liited follows the same oore valves of Fai Foundation-gving back tothe communi qualty produc fern ‘nd consumers. At Feu} Foocs Limited we deteve int faction of all our ctakoneldors rem eonoumer fo empleyees ‘ang ftom the boarc of arectore tothe supalers. We as-a team beave in bulding postive working relationship that not ory help us Dull a ogany, but aso an enechad hevitage, Now plart of Faujj Foods Limted le unique dainy cessing totity, fist of ts kind Pasian which has one steg UMT technology and package protessiona’ approach we ars strengthening cur team work of stutco, rk processing ane sales reacting our desied goals very etfeiorty machine With uimost dedication and (Our teen has worked very ha, using the best global pracioas & Technology, te bring ust par with ndustyleadete, | would ike fo thark our arployeee. 4¢ wthout heir decioaton, tie impossible 0 exoal as a company. | also thank our customers, GOP, shercholde's ang other stakehollers for ther continuous faith in us t provide tam tho vory best We hope that fe future ‘bangs turner accomplishments for us. Lt Gen Khalid Nawaz Khan y 4 HI(M), Sitara-i-Esar, (Retd) ChairmanA WORD FROM THE CHIEF EXECUTIVE The year 2016hascometoan end wih another leather in our caps. Aer svocesslul campleton of Balancing, Medernization and RRevaring (BMIR) phase and achieving the tus. and confidence of ine dtr consumer at present Anandulilah Favj Focds Leitod is tne ofthe leading companies in the markat. As @ company, ou core phiosopty is ta serve this nation and all ou stekeholaers in Ihe best possible manner Moreover thing new products leensiens are asa in pipaline to turther strengthen the portoto, The Company as also atrieves stccessiulcommissioning of UAT Procoss machine and ancilary equipment includag Packaging machines thereby enrancng our procucton capaciy. This year ‘along with revampng phase we have aso launchd now brands in 12a afeaming segments wah the name of ‘Dostea” and UHT with tne name of "Nupur Orginal We fave sontiued breaking barre aid making postive progress, aspeciaty inthe nemy acquired deity business, We are censtariy improving the range of existing rosucts ofsred by Feu Foods Limited, tongwith adding an area o! products as defned by the neods of our customer, [As we embrace a new year | @m conldeht about the cempary’s ‘r0wth prospects in he future and have the ummost faith in our team anda ne poeple who have worked very era to make FaujiFocds Lime the unique entty that its today, | bee Lt Gen Muhammad Haroon Aslam HI(M), S.Bt, (Retd) CE&MD = afNotice of Annual General Meeting Notice is hereby gven thatthe 50" Annual General Meeting of shareholders of Fauj Fonds Limited (formerly Noon Pakistan Limited) willbe held at Pearl Continental Hotel, Latore on Thursday, March 30, 2017 a! 11.00 a.m. to transac the fallowing business:- ‘Toconfrm the minutes ofthe Extraordinary General Mezting held on May 26, 2018, 2. To receive, consider and acont the audted accounts forthe year ended December 31, 2016 and the reports of the Directors and Auditors thereon, 3. Toappoint audiors for ensuing period tl ne AGM andtott their remuneration 4, Totansactany otherbusiness asmay be placed before the meeting with the permission cf the Chairman. ‘CLOSURE OF SHARE TRANSFER BOOKS ‘Tho shara transfer books of the Gompany wil remain ciosed from Merch 24, 2017 to March 30, 2017 (both days inclusive) for the purpose of holding the AGN. By Order of the Board Lahore. BRIG RIZWAN RAFI (Retd) sanuary 27, 2017 Company Seoretary NoTes: 1 ‘Armemberentitedto altend and voteat this meeting may appoin,enother member as his/her proxy 1 attend, spaak ‘and voto on his/ror bohatf. Proxiesin order to be effective must bereccived by the Company at the registered otice not lass than 48 hours before the meeting, The sharcholde's throug CDC ate requested to bring orignal CNiGyPassport for the purpose of ideniiication ‘0 altend the meeting. Represercaves of corporate members ‘sculd bring the usual documents required for such purpose. The members ere requested to fllow the guidelines Contained in Grcular No.1 of 2000 dated 26 January, 2000 issued by SECP reproduced on reverse of the Proxy Form. ‘Members, having pnysical shares, are advised to intimate any change in their registered address and the shareholders viho have not yet submitted photocopies of their Computerized National ldentty Cards (CNIC) are requested to send the same a the cartost, Vide SRO No, 767(1]2014 dated 08 September, 2014, SECP hes allowed companies to circulate aucited financial statements ané notice of AGM te shareholders through their email addresses subjectto the writen consent ofthe ‘tiareholders, Sharetoters who wish to receive annual reports andnatice of AGM trough e-mail are requested to Provide, through a leter duly signed by them, their paticuars, ie. Name, Folio’ CDC A/G No., E-mail Adcess, ‘Contact Number, CNIC Number (attach copy). Shareholders ar also requested to natty immediately any charge in ‘thet e-mall address tothe Share Regista of the Company. Le. MV's Corplnk (Pvt) Limited, Wings Arcade, 1-K ‘Commercial, Model Town, LahoreLANKAN Seen PION) Directors’ Report to the Shareholders ‘On behalf ofthe Boar of Directors ofFauj Foods Limited, lam pleasedto present the directors report along wit the aulted financial statements forthe year ended Dezember 31, 2016. Comparative data in tha financial statements have been prepared for six months Deriodended December'31, 2015 dueto change financial reporting year from June 20te December. Principal Activities Fail Foods Limited. 2 majorty owned Company of Fauj Fertiizer Bin Gasim Limited (80.28% shareholding} and Fauji Foundation (12.75% shareholding) is engaged in processing and marketing of dairy products, juces and jams. The Company's brand 'Nurpur is one ofthe oldestand highly recognizable brand in Pakistan, Operations During the Yea By the grace of ALWIGHTY ALLAH, the Company has completed its 50 yea's o incorporation on September 26, 2016 demonstrating continuous consumers’ confidence inthe products ofthe Cormpary, Change in name of the Company from "Noon Pakistan Limited” to “Fauj Foods Limited” was made on June 01, 2016. This change is «eflectve of Company transformation towards aninnovative and dynamic organization and e-affirms its commitment towards bottor serving the needs ofits expanding stakeholders, ‘The current financial year witnessed a focus on rolling out our growth stratzgy, planned at the time of acquisition ofthe Company by Fauji Group in September 2015. During the year, we achieved numerous important milestones and demonstrated our commitment towerdsexcelience, Three new products Dostea (Liquid Tea Whitener), Nurpur riginal (UT) and Nurpur Fresh (Pasteurized) were launched in innovative packaging, Thace product launches were accompanied by comprehensive marketing and advertisement campaigr'. The Company's growinglineo brands and marketing efforts stand outin each respective product category are delvring onthe Company's promise to their consumers, resulting in complimenting sales growth ofthe Company, which saw persistent upward trend both interms of volume and value ‘Tocomplemnent our efforts for sventheningot our bxands, Balancing Mocemiation ane Revamping (BIR) are also ontrack to ensure rolbiity and effciency of the Company's production ‘acy: During 2016, the Company achieved successful commissioning of UHT Processing machine ané ancilary equipment ncluding Packaging machines ina rocordtime period thoreby enhancing our production capacity Financial Performance ‘The Company achieved turnover of Rs. 3,374 milion compared to Re, 880 milion inthe comparative half year. Loss after taxation in ‘ne reported year is Rs, 967 milion as compared to Rs. 106 milion in te comparative nalf year. The Loss per Share hereby isRs. 8.75 ‘ascompared with Rs. 1.07 in the comparaivehalf yeas. The Company isin the process of capacity enhancement of production facity and upliting of milk procurement and sales & «istbution networks, his resuted in inroased fxad cost during the yoar Moreover in ordor to realize full potential of Company's assets, Management fs focusing on strengmening fs markt positon and is continuously making investments nthe marketing and branding oisportfoio,£3 ~ fauji foods Major factors for loss are substantial costs incurred on aggressive marketing and sales cérnpaign to reposition and launch our products. Although this ‘actor has impactad recuts of currant porio, but the benefits of marketing and sales campaigns shall be realized in coming years. Other reasons are, inereased compettion in ta creamer segmert of indus, increased raw materials cost inclucing impact of changes in taxregime on raw material andhigh thancial cess. Management has undertaken various itiatives lke curtailment of input costs, increzsing production scales to optimum levels, stvengthoning of mik colecton and sales & cstrbution structures, injction cf ecuty through right isue, securing new working captal ines etc. We expect that nese steps Together wit nreased sales wil cortributesignicandy towards te groftaoity ofthe CCompanyin the future Future Outlook ‘The general outlook of Pakistan economy seems tobe onthe rcht rack with positive econiomicindicatorsane outlook, China-Pakistan Economic Coridr (CPEC) has further boosted te future prospecis andits success wil certsnly enhance much needed impetus to the econorry inthe long run for consistent and stable growth. Improvement inlaw and order siiation serves an important cve tothe ‘economy in positive direction. Consequently, our confidence remains high i the growth potental of Pakistan's dairy market. The ‘Company's capacity arhancemeont will able ito contribute as key market payer ofthe dairy industry. The Boardis aiso confident about the future growth of the Company to deliver quelty products whie keeping a strong focus on innovation and operational excellence, ‘Transaction with Related Parties The Company carries out transactions with elated parties and amoun's, due from ané to, related parties as shown under respective heads are carried out at arms' length. Except 2s disclosed in financial slaements, no other transactions were executed with related parties. Corporate and Financial Reporting Framework The financial statements, prepared by the management of the Company, present fairly its state of affairs, the resut af its erations, cash fowandchanges inequity. Proper books of accounts othe Company have been maintzined. Approprete accounting policies have been consistenty applied in preparation ofthe financial statements end accounting estimates arebased on reasonable and prudentjudgrnent. Internatonal Financial Reporting Standards, as appicable in Pokistan, nave bean fofowed in preparation of the financial statements ‘Thesystemot internal contols is soundin designandhas been affeatively implementadandmonitored. ‘Thereareno significant doubts upon the Company's abélty to continue as a'yoing concern ‘Thereareno statutory payments pn account of taxes, curtes, levies and charges which are outstanding as on December 3 201Gercept fr thse disclosed inte financial statements. ‘The value of investments of staff provident fund, based on un-audited accounts, was Rs.356 milion 2s at December 31 2016 oO + Thepatternot shareholding andadtional informaton recarding pattern of shareholdings incudedin this annual reportEN REPORT plOTs Details of trade in the shares ofthe Company carriad-out bythe Directors, CEO, CFO, Company Secretary and their spouse ‘and minor children during the year ended December 31, 2016 s 2s olows Director Voting Non-votiig Naik Adnan Hayat Noon = Teansferted * (1 369,841) 782,243 Right issue exercised 9.584.597 : Malik Salman Hayat Noon | « Trensfered * 1,986,641 (782,243) «Right issue exercised 5,386,994 : * Maik Adnan Hayat Noon transferred 1,969,841 voting shares to Maik Salman Hayat Noon and acquired 782,243 non-voting sshates trom im, Board of Directors / Committees Meeting During the Year 2016 ‘Sic motngs of the Board of rectors wore hl. Atendane by ech det was asl Name of Drectors ‘No. of Meetings Attended Lt Gen Khalid Nawaz Khan (Reto) 6 LL Gen Munamimad Haroon Astam (Retd) LL Gen Shafaaat Ahmed (Retd) Mr, Gatser Javed Dr, Nadeem inayat Mr. Adnan Hayat Noon Mr Salman Hayat Noon Dr Rashid Bajwa Brig Raja Uahanzeb (Ratd) — rasigned on Apri 22, 2016 Ut Gol Abdul Khaliq Khan (Retd) Me iifat Rasul Khan Mr Par Soden Brig Rashid Wall Janiua (Reta) ~ appointed on April 22, 2016&% - Fauji foods Fomaty Mo Pabst ini Name of Directors No. of Meetings Attended (Mr ifat Rasul Khan | 5 Mi Qaiser Javed 4 Dr. Nadeem Inayat 4 Brig Raja Jahanzeb (Retd) — resigned on April 22, 2016 3 ‘Mr, Adnan Hayat Noon — appointed on April 22, 2016 1 LtCol Abdu Khaliq Khan (Retd) ~ resigned on April 22, 2016 2 Name of Directors No. of Meeting Attended Dr. Nadeem inayat BX Dr. Rashid Bajwa - Brig Rala Jehanzeb (Reta) ~ resigned on April 22, 2076 + Brig Raashid Wall Janjua (Rete) ~ appointed on April 22, 2046 1 to! Abdul Khaliq Khan (Reto) 2 Name ot Directors No. of Meetings Attended Brig Raashid Wali Jarjua (Rete) - Appointed on Apri 22, 2016 3 ir. Rashig Baywa 2 LtCol Abdul Khaliq Khan (Reta) 3 Name of Directors No, of Meetings Attended Dr Rashid Bawa a Dr. Nadeem Inayat 1 ‘Mit Salman Hayat Noon 1 ‘Mt Par Sodertund 1A REPORT 2016 The present auditors, M/s KPMG Taseor Hadi & Co.. Chartered Accountants wil retire and being eligible offer themselves for re- appointment as the statutory auditors of the Compary. The Audt Committee and the Board of Directors of the Company have endorsed the recommendation. Compllance with the Gade of Corporate Governance The requirements of the Code of Corporate Governance sei cut by the Pekistan Stock Exchange in their isting rules, relevant forthe year néed Decembar31, 2016, have been duly complied with, A statemanttothisoffectis annexed with the report, ‘The Boardhas notrecommended any dividend due to osstothe Company during the year. ‘Annual General M ‘The 50" Annual General Meeting willbe held on March 30, 2017 at 1100 hours at Lahore to aporove annual financial statements ofthe ‘Company forthe yee endec December 31, 2016. Acknowledgement ‘The Boardis thankful to te valuable shereholders and financial insttuions for tnt trust and continued suppor to the Campany. The Board would aiso Ike to place onrecardits appreciation oat employees ofthe Company forthe dedication, cligence and hard work For and on baba of the Board LT-GEN KHALID NAWAZ KHAN HI(M),Sitara-i-Eser, (Retd) Chairman Dated : January 27, 2017orn Neo Paketn nts 8 | v Statement of Compliance with the Code of Corporate Governance Name of company: Fauji Foods Limited (formerly Noon Pakistan Limited) Year ended Dacomber 31, 2016 ‘This statement is being presented to comply wth the Code of Corporate Governance {C0G) contained in clause 5.19.24 of sting rogulatons of the Pakistan Stock Exchange ‘or the purpose of establisning 2 framework ef good governance, whereby a listed ‘company is managed in compance witnthe hest practices ot corporate governance, ‘Tho Company has applied the principles contained inthe CCG inthe following manner: 1. The Company encourages representation of independent, non-executive directors and ciracters representing minority interests on its Board! Directors. Atpresentthe Boardinclides Category Names - - Independent Directors ‘Mr. tat Rasul Khan ‘Mr. Par Soderiund Executive Director LtGen Muhammad Haroon Aslam (Retd) Non-Executive Directors Lt Gen Khalid Nawaz Khan (Retd) Lt Gen Shafgaat Ahmed (Red) Malik Adnan Hayat Noon Mr. Qaiser Javed Dr. Nadeom inayat ‘ Mr. Saiman Hayat Noon Brig Raashid Wali Janjua (Retd) Lt Col Abdul Khaliq Khan (Retd) Dr. Rashio Bawa ‘Tho independent directors mest the citer of independence under cause 5.19. 1(b) of the CCS. 2. The directors have confirmed that none of them is serving as a director on more than seven listed companies, ineluding this, compary,. ‘3, Allthe resident directors ofthe Company are registered as tweayers and none of them hos defaulted in payment of any loan toa banking company, a DFI or an NBF or, being a member of 2 stock exchange, has been declared as a defauiter by that stack exchange. 4, casual vacancy occurring on the Board on April 22, 2016 was filled ty the directors onthe same day when Brig Raashid Wall Janjua (Reto) was appointed as Drectorof the Company in place of Brig Raja Jahanzeb (Reta). 5. The Company has prepared 2 “Code of Conduct” and has ensured that appropriate steps have been taken to cisserminate it ‘roughout tie company along with ts supporting policies ad procedures, 6. The Board has developed @ vision/mission statement, ovarall comorate strategy and significant policies of the company. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been ‘maintained, 7. All the powers of the Board have bees duly exercised and decisions on material transactions, including appointment and determination oframuneration and tors and conditions of employment ofthe CEO, other executive and non-sxecutve directors, have bean taken by the Board/sharenolders, 8, Themectings ofthe Board were presided overby the Chairman and he Board met atleast once in every quarter Wren notioes of ihe Board meetings. tong with agenda and workina papers, wee citculatedat least seven days before tremeetings, The minutes ltheBoardmertings were appropriately recorded and circulatedENN REPORT 2016 9. Seven directors haveattended te raining program. The Board has not arranged traning programthisyeer. 10. The Board has approved appointment of Chief Financial Otficer (GFO) Company Secretary and Head of Internal Audi, inctuing ‘heirremuneration andterms and conditiors of employment. 11, The Directors: Report for this year has been prenared in compliance withthe requirements of the CCG and fully describes the salentmattersrequired to be disclosed. 112, Thefnancial statements ofthe Company were duly endorsed by GEO and GFO beioreapproval ofthe Board, 13. The iractors, CEO and executives do rot hold any interest inthe shares af the Company other then that disclosedin the pattern ot shareholding. 44, The Company has complied witht the corporate and financial reporting requirements otthe CCG. 15, The Board has formad an Audit Commitee, t comprises four members, of whom three are non-executive directors and the Chairman of the Commitee anindependert director 16, The meetings ofthe aueit committea ware held a least once every quarter prior to approval of interim and final resuts ofthe company as required by the CCG, The terms of reference of the committee have been forned and advised tothe cornmites fos compliance. 17. The Board has formed an HR and Remuneration Committee. tt comprises four members, al of wham are non-executive directors, including the Chairman of the Commitee 18. The Beard has set up an ettectve imemnal audit tunction whichis considered suitably qualified and experienced fr the purpose andis conversant withthe policies and procedures of the Company. 19, The statutory audiors of the company ave confirmed that they have been given a satisfactory rating under the quality contol review program ofthe ICAP thatthey cr any ofthe partners of the frm, their spouses and minor children do not hold shares of the Company and thatthe firm andl ts partners ae in compliance wethIrterrational Federationot Accountants (IFAG) guidelines on code of ethics as adopted by ine ICAP. 20. The statutory aucitors or the persons associated with them have not been appointed to provide other services except in ‘accordance with the isting regulatons andthe aucitors have confirmed that they have observed FAC guidelines inthis regard 21. The closed period, prior to the announcement of interivtinal resus. and business decisions, which may materially affect the market price of Company's securities, was determined and intimated to directors, employees and stock exchange. 22, Materiaiprice sensitve formation has been clsseminated arrong all market participants atonce trough stock exchange, 23. The Company has complied with the requirements relating to maintenance ot register of persons having access to inside information by designated senior management officer in a timely manner and maintained proper record including basis for ‘nclusion orexclusionof names of persons fromthe said list. 24. We confirm that all other materia principles ensbvined inthe COG havebeen compled with n behalf of the Board \Yee LT.GEN MUHAMMAD HAROON ASLAM Place : Bawa Hi(M), S.Bt, (Retd) Date January 27, 2017 CE&MDSB fauji foods omer en Palit Produetion UT ati Tea Woe LAT avs ti UT crear Buter ik Powder Cheese She Paseured Mie Jas & nen “cas Financial Pertermance ‘Goss oft (Loss) margin. EBITDA / (BTA) magn to sales Pretax rat! (oss) Netorote/ (Loss) margin ture on uty eter or capital employed Operating Pertormance Liguly Toa assets turnover Fes assets unover “ae Deno Debio umcver Debio uncover Inventory lever teaver lover turover Pucchses ‘Accounts Pajaties rectors wxnover Greer nenover Operating cycle eturion sats Curent alo (tic Aci test ati FINANCIAL HIGHLIGHTS uss, le ts gs. os, gs. os, ts. as. eevee Times: Times Fs, (000) Times ys Rs, (000) Times Daye Rs, (000) Rs. 000, Times Days Days « December 2016 36986399 1284517 535.05 3s7ar5 116053 1476036 9.053 17676 37a (34.2) (45.04) (23.69) (53.68) (2007) 04 088 77369 8 5 664,808 5 a 2mm B12 108.185 4 8 i (125) aa 025 December 2018 532.865 4687.84 162,174 ca 8.231 2378 23.060 12,808 28.662 019) (1498) (2588) (0539) (726) (e443) 036 054 37780 10 174626 4 4“ si6atd 310,190 m2 a 656, 034 oat tuna m6, v298236 4958.27, 79.491 526628 230444 178560 2782 1.951695 21607 2256016 320 eer) (2284) (18.74) eras) (273.42) 118 170 38505 4 B 186,125 8 2B 1403509 289,403 4 % 46) 2203) oat 035 she une mo 2a 12949985 20195083, savage se72916 206227 154008 e2sq7 915200, so0s86 621653, 216.452 at400t 1588 028% 2.08235 4003524 2528 S387 288777 2082460 931 97 019 = (095) 55) (498) 6 (aay (015) 72.06) (458 aon) 155 218 377 452 P1612 178.324 i" 2 3 8 cogs 73,860 29 19 2 18 1804615 2.261.248, 497.998 505.658 4 5 95 78 0) (42) (91) (930) 087 078 087 082 ne ane 30572685 5285880 30.146 40090 638,125 262080 106.044 eee 22285 4aga77 1223 10 19 11.06, 897 248 51 109.019 3% 0 198,185 6 2 2.598.377 464.602 58 2) an 80 orANNUAL aeelan 2016 FINANCIAL HIGHLIGHTS Desemner —acomer dune. ne ute 2016 ms (Sa 2088 ‘Capital Market Canta Stucure Analsis Mato valu per tae ‘ear end fs soor = eeazs_ ase wear 57.00 High ung the yar Rs sido) 385TH 5s s7t Low durng the year Rs 1151 Te arte sot 1265, Breakup vate Net assets sha) Rs 388 a 4n8 ps0 2177 ‘cing shat apis fs (00) .601,18@asaso) (127.870 isa ssste ~reudnarevaaton sus Rs (00) 2281540 .485 as soa 20m 356.306 Earning L25)per share (eo) As (37) (178) (1419 (103338 Earning (Lass) pe share (aero) (878) (ay (175 oi) 238 Earnings | Lass) gown * 7182) = (152) (10) A581) @L.3H Pr ering / (Loss) ao (0%) eas) 681) Gas) TH_O aro rie to treat vue 650 Ge) (801181 420170 Deot: Ent 228 63) 62) aS 28511 inteest cover eo) =H) og toy) Statement of ats Shere capt s.(000) 1,821,017 iss 1waswe seta Reserves Rs (000) “480 68 (sie) 7385) 36100 Yee 26 Shr older und Easy As. (000) 1,401,184 (2reT) 42.005 hose am8018 Reraaensurpis fs (000) “ea, 358 weit 78015485788 Long tem torowings As. (000) 129818878 38r.808 211957 7.786 Cantal enpinyes| fs (000) 1.631.108 164820) (128174) 4ONSGH TSH DE ID4 Defer ati asses) fs, (000)—(€28382) (7098) (1.890) ~ aise Proper, lant egvoment fs (000) 4897751 1,277,968 1007778 — 578008 BON? 66750 Long tem assets fs (000) SS7NEr# 138081 otate aha 57 BOR Netcurert assets Mowing ceptal Rs (000) (3187387) 1.052400} (708304 (128,958) (20427) 170984) iui tds - fs.(00) SSO 525140057 Bz} 90a Fivanial Performance Sales net fs.(000 3570507 Se. T86EIe z,9Knz> Z926229 gaDEAB9 Gross soft oss) Rs. (000) ¥05,506 © .258) «154520 0N248—2O1.7RE 404225 Opuraieg Poe / (oss) s.(000) (907.004) (138.121) GBEBHE) (60.605) (TAA) goK2 Prot Loss) boo ax fs (000) (151788) 178931) GaCen0) (12057) (Lagag) 519 Prot Loss tert Fs. (000) (806.220) (105,073) (E755) (42,058) (127936 S601 BTA, LANDA) Fs. (000)A7He88) (O57) TETH Res) 71) 174607 Summary of Cash Fews Netcast fow rom onertng aetntes is. (000) (1.573.454) (185,296) (AOL TI (B.BHD) (14753) 180787 Neteash fow tom investingacties fs. (000) (9.802.420) 84,007) ABE) «15.750 (71.685) (A758) Nietcash fow romfrarcing activites. Rs (000) 205083 2a.t39 134,148 178822 «130284 (2857824) ‘hangs in cash & cosh equvdlests Fs (600) (1280810) (174.208) © 7.05) 197.733.4387 (174818) Cash cash equivalents -Yearend Rs. (000) (1.765.772) GBAABI) 141.057 4B DL «BONY «BSBAPERFORMANCE OVERVIEW SALES-NET sou areca (GROSS PROFIT! L085) NBAR & RATIOTO SALES INLINE 0 rd x0. a0 i m0 son. ‘a0 soy = ‘20. naw 4 “ i il om (ig SORA a a DISTRIBUTION EXPENSES IN BAR & RATIO TO SALES IN LINE is es ‘evn amgne ‘OPERATING PROFIT (LOSS) IN BAR & RATIO TD SALESINLNE a voarEeded an 4 sn =| FINANCIAL EXPENSES IN BAR & RATIOTO SALES IV UNE 1 : ‘padhad: PROFIT |LOSS) BEFORE TAXIN BAR RATIOTO SALES IN UNE = \E .PERFORMANCE OVERVIEW aa eae aR ETA win hE TSEC TA A =g2] (x i ino Spel i all Aie| on] [poe “ Ae. — ag E ecom. os aed) [fee -_ = 5 wa on a eee con 3 mene cong. J om bs Lm Pen om a i : of ER at saad a eee ee et =e intranstt 101,275,581 24,851,129 Workin-process 181 12,762,966 37,241,000 Finished gooés 181 175,283,807 33,971,363, (684,805,703 702,085,735 Provision for obsolete stock 182 (27,860,061) 793 _ 174,805,844 18.1 The emourt charged to proft and loss account on account of write dawn of frished goods and woxk-in-process to net ‘ealzeble value amounts to Rs. 86.77 millon (31 December 2015: Rs. 1.51 milion). 31 Decomber 31 Dacember 2016 2015 ote Rupees Rupees 18.2 Provision for obsolete stock Balance as at O1 January /O1 Juy 77,860,091 27,860,091 Wrten off during the year (27,860,081) Balance as at 31 December 77,860,081 19, Trade debts Unsecured ~ Considered good 17,968,418 37,729,967 ~ Considered doubiful 11,000,000 _181,468,616. $6,969,418 219.198.585, Less: Provision for doubttul debts 19.1 _(14,600,000) (181,468,616) 77,969,418 37,729,967 19.1 Provision for doubiful debis Balance as at 01 January/01 July 161,408,015 181,488,616 Provision forthe year 30 8,000,000 - Witten off during the year (179,468,616) : Balance as at 31 December 77,000,000 _ 181,468,616£3. fauji foods 31 December 31 December 2016 2015 Note Fupees Pupeos 20. Loan and advances - unsecured ue from employees - unsecured Considered good 4,197,291 875,931 + Considered doubtful : 166,184 ‘Advances to suppliers - unsecured - Bonsidered good 44,283,164 20,652,977 = Considered doubtful : Less: Provision for doubtiul loans and acvances aot : (6740,638) 46,480,455 21,528,308 201 Provision for doubtful loans and advances Balanco.as at 01 January /01 July 6,740,634 3,800,975, Provision for the year/ period 30 = 2,936,659 \Wiitten off curing the year (6,740,634) : Balance as at 31 December 6 740,634 21. Deposits, prepayments and other receivables Security deposs 92,961,154 22,129,984 Prepayments 5,008,928 659,181 ther recewvables 22. Due trom associated undertakings - unsecured Noon international (Private) Limited 39.247 39,247 Textile Services (Private) Limitec : 38,904 Noon Sugar Mits Limited : 1,947,268 39207 2.025.419 221. Maximum aggragato amount due from Associated Companies atthe end of any rronth during the current financial year was Rs. 0.4 milion (31 December 2015: Rs. 2.51 millon)ron REPORT 2016 31 December 31 December 2016 2015 Note Rupees Rupees 28, Sales tax refundable - net Sales tac refundable 475,950,146 474,244,217 Less: Provision made for old stuck-up refunds of input to 15,353,560) 155,860,557 23.1 Provision made for old stuck-up refunds of input tax Balance as at 01 lamuary / 01 July 15,353,660 \Writen off uring the year (15.353.660) : Balance as at 31 December : 15,993,560 24, Cash and bank balances ccasiin-tand 729,162 120,945 (Cash at banks on’ ~ Curent accounts 714.695 39,946,057 - Saving aceourts 241 331,874572 338.097) = Dividend accounts 221,490 221,526) 242 392,810,757 40,507,320 399,508,919 0,528,265 24.4 This caries profit tthe rates ranging irom 8.75%to 4% (34 December 2015: 3.5% to 4.5%) per anna 24.2 This includes amount of Rs. 252.27 milion (81 December 2015:Rs. 0.04 milion) at Askari Bank Limited, a related party. 01 January 01 July to 0 ‘31 December 31 December 2016 2015 Rupees Rupees 25. Sales -net Gross sales 3,458,401,423 727,068,317 Less: Sales tax (62,733,421) (B4.931,701 Leakages / discounts allowed (20,161,230 (3,091 936) 738.023.637) ~o92,044.6oi fauji foods Former Non Patan Lin 26. Cost af Sales Rew materials consumed Mik cotection exoenses Salaries, wages and other benefits Power and fuel Packing materials consumed Stores and spares consumed Toll Manufacturing Charges Repair and maintenance Rent, rates and taxes Staf vaining Depreciation on property, plant and equipment Mik collection centres + Production faciity Insurance Adjustment of workin-process Opening stock Closing stock Cost af goods manufactured Adjustment of finished goods Opening stock losing stock 26.1 Raw materials consumed: Fresh milk Milk powder Jams Juice concentrates, Fats (Biscuit shortening fats) Additives Butter & cream Note 26.1 262 263 41.3 441.8 18 18 01 January 1 July oo 0 31 December 34 December 2016 2015 Rupees Rupoos 1,701, 883,161 365,232,656 128,619,858 22,808.472 173,738,516 36,282,910 142,906,982 41,728,451 943,214,634 154,305,292 72,714,220 27,806,494 21,825,193 - 32,726,551 4,265,932 15,936,612 2,603,981 26,884,875 . 19,991,674 9,128,921 150,089,597 933,759,397 11,349,647 34a 835,520 37.241,000 35,844 656 (72,762,966) (37,241 000) 35,521,905) (3,396,344), 3,406,313,554 690,013,644 33,977,368 35,461 310 L175.283.807) (33,971,363) (141,312,444) (510.074) 3,265,001,110 815,166,451 419,604,664 4,714,153 52,232 222,813,060 161,392,438, 81,050,163 4,701,883, 161 630, 303,830_ 196,218,501 59,052,331 2,281,365 1,698,360 35,875,780 39,287,169 36,021,150 365,292,656EN REPORT 2016 OV January Of duly to to 31 December 31 Decernber 2016 2015 262 Milk collection expenses: Fupees Rupees Salaries, wages and othor benofits 55,143,589 12,819,118 Provident fund 1,204,887 387,857 Store consumed 20,933,431 2.951.233, Chiling exaenses 1,258,711 1,754,821 Fuel and ol expenses 23,094,462 3,909,405 Others 26,094,788 1,357.033, 128,619,858 22,808,472 26.3 Salavies, wages and other benefits include following in wespect of retirement benefits OF January 4 July to to ‘31 December 31 December 2016 2015 Note Rupoos Rupees Provident und 4,651,408 1.265.996 Long term accumulated compensated abgonces 2,287,402 504547 Gratuity 5,257,498 72,196,308, T8505 Marketing and distribution expenses Freight and forwarding 123,199,212 9,328,172 Salaries, wages and other benefits art 202,695,806 23,143.51 Rent 7,264,689 616,800 Entertainment 2,064,989 33.864 Communication 387,317 34,492 Traveling and conveyance 225,715, 104.197 Vehicles’ running and maintenance 9,892,541 213,155, ‘Advertisement and sales promoton 830,987,047 32,000,128 Insurance 2,035,532 167,858 Depreciaton on property, plant and equipment M13 14,032,463, 276.633 Samples 11,485,614 90,478 Othors 3,877,320 950 4,216 256,245, 66,009,87501 January 1 July to to 31 December 31 December 2016 2018 Rupees Rupees 27.1. Salaros, wagas and athor honofits include folowing in respect of etrement benef: Provident fund 9,794,685 660,268 Long term accumulated compensated absences 2,668,648 63,600 Gratuty 6,133,778 18,597,107 723.368 01 January 01 uy to to 31 December 31 December 2016 2015 Note Rupees Rupees 28. Administrative expenses Salaries, wages and other henetts 28.1 152,100,858 24,696,317 Traveling and conveyance: + directors, 4,630,877 650,148 others 7,983,735 444,906 Directors’ meeting fee 35.4 4,781,780 213,600 Rent, ales and taxes 20,052,325 1,280,233 Entertainment 2,315,068 1,155,052 Communication 4214425 1,199,877 Printing and stationery 3,180,565 947,875 Flectrcity, gas and water 7,038,201 969,978 Insurance 575,309 403.974 Repair awd maintenance 3,491,303 590,336 Advertisement 740,588 482,780 Vehicla' running and maintenance 4,187,434 1,787,986 Subscription 4,745,331 2,941,561 Legal and protessional charges 282 23,380,149 20,330,160 Cash security charges 1,998,955, 571,001 Others 5,584,247 619,417 Depreciation on property, plant and equipment 1413 11,500,779 4,901,631 Amartization of incangibie assets 18 616216 390,577 257,212,245 60,571,439Ns ae eae 28.4 20.2 2. Note Salaries, wages and other benefits include flowing in respect of retrement benefts: Provident turd {Long term accumulated compensated absences Gratuity Legal and professional charges Te charges tor professional services include the following in respect of aucitrs' services for: + Statutory audit fee Half yeatly review + Certification charges - Out-of pocket expenses Other income Income from financial assets Profton saving accourt and term deposit recelpis Income trom non-tinancial assets Sale of sap Gain on disaosal of propery plant and equipment Liabltes no longer payable wren back Excnange gain Other Other expenses Prior years’ sales tax Provision for douotil debts 191 Provision for obsolete stock 74 Provision tor downttul advance payments 201 Loss on disposal of property, plant and equipment Receivable balance written-off Exchange loss 01 January to 31 December 2018 Rupees 780,000 125,000 10,000 250,000 1,275,000, 7,057,883, 9,743,587 4,927,092 6,509,264 25,917,826 387,632 9,000,000 18,568,979 21,956.61 2016 01 ily to 31 December 2015 Pupees 443,620 800,849 1244.46 660,000 100,000 45,000 305,000, 404,083, 245,476 2,104,698 36,000 790,857 2.939,659 2,125,468 4,277,209, 4,728,523, 71,070,949)01 January 01 duly to to 31 December 31 December 2016 2015 Finance cost Note Rupees Rupees Islamic mode of financing = Shortterm tinancing 17,506,566 14641 114 {Interest/mark-up on interestimark-yp based loans ~ Long ‘orm finance 1,042,450 = Short term borrowings 93,336,860 22,051,643 - Finance lease 8,868,833 4,300,928 = Tera Pak Funds utilised : 189.316 = Workers! profit paticintion fund 13 : ‘Bark chargos and commission 4,224,258 750,995,517 Taxation Curent = For the year 24 Deferred: Origination and reversal of temporary diferences (551,020,316) _(70,857.685) (651,020,316) (70,857,685) ‘82.1 Current tax charge forthe year determined under "Minimum Tac” scheme ws 113, of income Tax 22 Ordinance, 200% has been resircted to zero because of the tax credk related to baancing, ‘modernization and replacement of plant and machinery already installed, as avaiable u/s 653 ot the Income Tax Ordinance, 2001 0 January Ot duly - to to Tax charge reconciliation 31 December 31 December ee atl tax charge and the applicable tax Loss before tax (1.517,940,130) —_(176,931.118) ‘Apalicable tax @ 81% /32% 470,551,440 56,017,957 Effect of tax crit 120,000,000 - Effect of change in tax rate (15,178,401) (1,262,176) Effect of unused tax losses (27,338,800) 15,501,904 thers 3.038,17 80 458,876 TAG TOE Effective tx charge for the year / period 551,020,316 70,857,685ENNUAE ise) 2016 1 January daly 33, Loss per share to to 31 December 31 December Loss per share - basic and diluted 2016 2015 Rupees Fupees Loss forthe year / period Pupees 966,919,814) _(105,073.430 Weighted average number of ordinary shares inissue curing the year / period ‘Number 110,497,566 99,182,984 Loss per share - basic an alluted (restatec) Rupees (875) 07) 31 December 31 December 2016 2015 34, Cash and cash equivalents Note Rupees Rupees Cash and tank balances 24 933,599,919 40,628,255, Punning firance balances 10.4 (2,098,811,578) (575,089,638) (765,274,660) © _ (634,464 426) 35. Romuneration of Chiof Exoeutive, Directors and Executives 35.1 The aggregate amount charged inthe financial statements far the yearfor remuneration, including certain benefits to Chief Executive, directors and executives othe Company sas folows: (Chiat Execute Non Executive Directors Executives 01 January orduly | | otdanwary || ot say otJanwary | | 0% Juy a6 2015 ante 2018 2016 2018 to ‘0 0 0 to to ‘384 December| | 31 December | | 31 December | | 31 December | | 31 December | |31 December 2016 2015 2016 2015 2016 2018 Rupees Maragetal remuneraion = +,000,000 z 3,091 667 Meeting Fee : 41,781,780 213600 Consutancy fee ® 17,968,190 : Provident tnd s 2 House ent # z Usltes x 3 5 Necicalalowance : 100,000 2 59167 Relocation alowance : % Others 5 [easier 9731 570 SSA ‘amber of persons 1 1 " " 197,125954 12,816,454 0251299 600878 83883335 8,301,825, 9.307.081 ‘19081 505,554 901,428 2,506,000, 263.973.888_ —73 171 BID 116 588B ~ fauji foods Feeney Woon Pain Lint 35.2 ‘maintainedcars,travalfacitios and club memberships. 36. Number of employees 1 January to 31 December 2016 The Company has employed folowing number of persons: = As at 31 December ~ Average number of empioyees The Commany also provides Chiel Executive, Directors and some ofits executes with company 01 Juy to 3 December 2015 (Number of persons) 41,028 37, Related party transactions and balances Related parties comprise of associated undertakings, rectors, enttias with common directorship, post employment plans and key management personnel. Amounts due from andto related parties are shown under respective heads and remuneration of Chief Executive and Directors as key management personne is cisclosed in note 35. Signiicant transactions wth related partes are asollows: 583 507 ‘31 December | 51 Deventer lationship withthe company Noture of transactions 2016 2015 Rupees | _ Rupees |. Asvosiated Undertakings Noon Sugar Mls Limited Purchase of goods 6,180,620 Sale of goods 7316 pense pai to ors on behalf tte relate party zai 499.629 Espange pai ty roatee pary onbatal of the Compary «11,888. «(256.900 Tile Services (Private) Lied Purchase of store lems 2.500.701 Payment made to related party 2,638,605 Fuji eciizer in Qasim Limiee Salaries of seeorded employees charged by related pty 37,110,995 2,698,701 pair & manierance ané buiding rent eroense chamecby reat party za08e492 2,636,005 Purchase of fied assets tom ral party 17,915,426 ‘stati Sank Linted France cest charge by related party 2emonsts 144,900 FFBL Power Compary Lites Coa purchased during te year 975,990 Eaponse pa to others on bahal ofthe rlaod party 69,930 Erployoos'Providot Fund Trust Cortrbution for the year parod 18,413,395 6,028,250 IL Associated persons Nc Salman Hayat loon (lor-Executve Directo) Purchase ofland 600,000 Nr Malic Adnan Hayat Noon {Won-Bxecutve Directo) Purchase of land 46,500,00038. Capacity and production Milk. PI Rated capactty of milk processing based on tee shits Fresh milk processed during the year / periog Cheese Plant Rated capacity of milk processing based on 24 hours per day Frosh milk procassed during the year / period Pasieurised Mik Prant Fated capacity of ik pasteurisaton basod on thrve shifts Mik pasteurised during the year / parod Yogurt Plant Rated capacity of milk procassing based on three shifts Fresh milk processed during the year perioc VHT Milk Plant Rated capacity of milk processing biased on three shifts Fresh milk processed durin the year/ period UHT Mile Dairy razana Dostea Flavored Mik hai Mix Juice Pant Rated capacity of jicos based on three shifts Juices processed during the year / period SSuDrinks gs. gs. Kgs. Kg. ive Kgs. kgs. litre Live lite uve Live Live Litre uve 31 December 2016 Rupees 42 months 44,416,000 3,951,614 3,725,000 1,464,131 5,840,000 1,382,667 67,200,000 6,142,803 28,263,438 867,583, 596,162 43,800,000 31 December 2015 Rupees 6 months 22,208,000 622,180 4,687,500, 694,178 2,920,000 885,910 4,480,000, 43,744,000 507,174 727.987 1,000,771 24,900,000 793,300 rc)fauji foods ~ Processing of UHT and Juice plants were restricte to the extent o fillng capacity of the Compary. Full operating cepacty of tho plant was not utized during she year due to BMR and demand forthe product. The management expects ful utlization in future 39. Financial risk management 39.1 Financial risk factors The Company's activities expose to a variety of financial risks markstrisk (nluding interest catorisk, prio sk and currency rSK), cred risk and liqudty nsk. The Companys overall isk menagemert focuses on the unorotictabity of financial markets an seeks to minimise potential adverse effects on he Compary’s financial performance. The Board of Directors has overall esponstbilty forthe estebishment and oversight of the Company's risk management framework, The Board is also responsible for developing and montaring the Company's risk management poicies, The Company srisk management policies are establishecto identify and analyse the risks faced by the Company, to set aporopriate risk imits and controls, andto monior risks and adherence olimits, Riskmanagementpolicies and systems aro reviewod regularly to reflect changes in market conditions and the Company's activites. The Compary, through is traning and management standards and pracedures, aims to develop a cfsvplined and constructive contol environment in whichal employees understanc thetr of and obigatons. ‘The Auclt Commitee oversees how management monitors ccmpliance wit the Company's risk management policies and procedures, and reviews the adequacy of the risk managemert iramework in relation to ie risks faced by the Company. The Audt Committee is assisted in its oversight role by Internal Audi, Intorral Audit undertakes both regular and ad hoc reviews ofisk management controls and procedures, theresults af which are reportedto the Audit Committee, ‘The Companys exposure to financial risk, the way tes tlsks affects the financil postion and performance anc ‘te mannar in which such risks arermanagedis as folows: (2) Marketrisk Market risks the risk that changesin marketpricas, such as foreign exchange ates, nterestrates and oquty prices wil atfect the Company's income or value of ts Folding of fnacie instruments. The objecve of ‘market risk management's to manage and contol market risk exposures within acceptable parameters, while opimiing return. () Foreign exchange Foreign exchange risk is the risk that value of a financial instrument will uctuate duo to changes in foreign exchange rates, Forelgn exchange isk arises manly where receivables and payables exist due to transactions with feign buyers and suppliers. The Company, where considered necessary, uses Maney market narrowing cantracts against receivables exposed tofareign exchangerrisks,ANNUAL sees 2016 ‘The Company is exposed to exchange tisk arising from currency exposures mainly with respect to the Euro and US Dalat. Currently, the Company's foreign exchange isk exposure is restricted to the mounts payable tothe foreign entities. The Company's exposure o foreign exchangeriskis 2s follows: ‘31December 31 December 2018 2015 Note Rupees Rupees Bills payable - Euro 4,830,519 4,800,000 Net exposure - Euro 7,839,519 1,500,000 Bils payable - US Dolar 4,973,683, Net Exposure - US Dollar 73,683 The fllowing signiicant exchange rates were applied during the year: Rupees per Euro Average rate 115.19 11359 Reporting date rate 110.11 114.54 Rupees per USD Average rate 104.49 - Reporting cate rato 104.60 : Foreign currency sensitivity analysis ‘At31 December2016 ifthe Rupee had weakened/' strengthened by 10% against he Euro andUS Dollar with ll other variables held constart, loss before tac forthe yeer would have been higher /lower as under, mainly 2s a ‘esut of foreign exchenge gains/losses on translation of foreign exchange denominated financial instrument The following able demonstrates the senstiiy toa reasonaaly passible change in the Euro exchange rate Change in Effect on Exchange loss rate before tax % Rupees ‘31 December 2016 - Euro 10% (20,254,044) 10% 20,254,944 31 December 2016 - US Dollar 10% (82,026,616) “10% 52,026,816 31 December 2015 - Euro 10% (198,418) “10% 198.418 51 December 2015 - US Dollar 10% : 10% :fauji foods Frmeny Non Paks Lins (i) Pricerisk Priceriskis the iskthat the fair value or future cash flows of afinancial instrument wil fluctuate as aresut ‘of changes in market prices (other than those arising from interest rate rsk or curtency risk wnethet those changes are caused by factors specificto the individual financial nstruments ori ssucror factors affecting al similar tirancial instrumonts traded in the market. The Company is not exposed to any signiicant pre nsk Interestraterisk Interest rate risk represents the risk that the far valve ot fture cashflows ofa financial instrument wil fluctuate because of change in market interest ates. Sensitivity to interest rate riskarises from mismatch of fnancialassets and iabiites that mature onreonice na given period. The Company's interest rata rick arises from long term finances and short erm finances. Borrowings obtained alvanable rates exposes the Company 10 cash flowinterestraterisk At the reporting date, the interest rate profile of the Compary’s interest bearing financial instruments is as follows: 31 December «31 Dacombor 31 December 31 Dacember 2016 2015 2016 2015 Effective rate Rupees Rupees Financial assets Fixed rate instruments Saving accounts 3.75% to 4% 3.5% to 4.5% _ 331,874,572 Total exposure 331,874572 338,897 Financial Habiities Varial abilities against assets subject tofinance lease «5.8% to9% —7.42%t0 10.98% 166,016,779 73,477,655 Short orm borrowings 6.54% 07.12% 8.55% 19 9.47% Total exposure Fairvalue sensitivity analysis for fivedrate instruments ‘The Company does not account for any fixed rate nancial assets and labiliies at fr value through prot or loss, Therefore, achange in interest rate atthe balance shectdate viouldnct affect prof or loss of the Company. At31 December2016, ifinterestrate an variablorate financial fables has been 124 higher /lower witha oter vatizbies held constant, loss before tax forthe year woult have been RS. 40.68 milicn (31 December 2015: Rs, 11.99 milion) higher / Jower, mainly as a result of higher / ower interest expense on variable rate financial lables,Nae teem Credit risk rect isk represents te risk ofa fnancial oss a custome or counte part toa nancial instrument fais to cischarge its contractual obligation. The Company attempts to cortrol cred risk by monitoring cred ‘exp03ures, imting transactions wah specific courterpartiesanccontinvaly assessing the credt worthiness of counterparties. Creat risk primarily arises from credit expnsure ta customers and deposit with tanks and financial institutions. “To manage exposure 10 oredt risk in respect of trade debts, menagement performs credit reviews taking into ‘aocount the customers financial position, past experience and other relevant factors. Individual risk mits are set based on internal or external ratings in accordance wit onteria developedtor managing risk by board. The utlizaton of credit limits regularly monitored and major sales to customers are on advance torms, thus limiting crect exposure. For banks and financial institutions erect quaity is determined with respect to external creditratigs pertormed by independentpartes. ‘Tho carrying amount of financial assets represents the maximum credit ecposure. The maximum exposure to credit risk atthe balance sheat date was 31 December 31 December 2016 2015 Loans and receivables Rupees Fupezs Securty daposits 33,925,460 23,156,670 Trade debts 77,969.418 37,729,967 Due from emplayees 4197.29 4,041,515 Due from related gartes 39,247 2,025,419 Other receivables 103,357,506 8,925 Bank balances 332,810,757 40,507,320 552,209,679 04 469.876 The creditrisk on squid funds isliited because the counterparties are banks with reasonable high reditratings The Company believes thatit snot exvased to major concentration of credit risk as its exposure is spreed over large number of counterparties, Alithe trade debts at the balance sheet date represent domestic parties. The egaing of ade debts atthe year-end wasas follows: 31 December 34 December 2016 2015 Rupees Rupees Not past due 23,364,063, 5,243,784 110 48 days 27,642,692 2,488,849 46 10 90 days 7,427,965 527,016 91 10 180 cays 2,315,635 471,763 181 to 365 days 1,218,863 2,223,780 Above 365 days 16,000,000 2016oy fauji foods Fomety Noon Paki ina ‘The management estimates the recoverabilty of trade debts on basis of financial position nd pasthistory ofits customers. Based on the objective evidence that it will not ecelve the amount due from the particular customers, provisions made in thefinancial statements. ‘The credit quatty of Company's bank balances can be assessed with reference to external creat ratings as follows: ‘Hi December 31 December ing Rating 2016 2015 Bank Shortterm _Longierm __ Agency Rupees Rupees National Bank Of Pakistan AT + AAA PACRA 8,499,450 1,573 847 United Bank Limited Alt PAA JORIS 328,876 2,980,956 Askari Bank Limited Ate AME PACRA 252,265,071 42.206 Bank Alfalah Limited Att M PACRA 24,634 6,168,326 MCB Bank Limited Ate AAA PACA 164,539 2,704,748 The Bank of Punjab Alt MA PACRA : 7775 Hebib Bark Limited Alt AAR JER AIS 51,774,634 8.714350 ‘Aled Bani Limited Alt AAt PAGRA 19,193,980 151,732 Faysal Bank Limitee Ale MA PACRA 45,064 «16,052,282 Bank Islami Pakistan aM AY PACRA 375,517 1,068,360 Bank Al-Habib Limited Als A PACRA 195,102 6788 NIB Bank Limited Alt A PACRA : a Dual Isiamie Bank A A JERS 2,000 "i 332,810.757_ _ 40.507 320 Due to the Company's lang standing business relationships with these counterpartos and after giving due Consideration to thet strong fmancial stancing, management does nat expect non-pertormance by these counterparties onthar obligations tothe Company. Accordingly, the ered risk minimal e} _Liquiity risk Liquidity risk is the sk thatthe Company wit encounter dficulty in meeting obligations associated with financial abiltes, that are seted by deivering cash or ther financial asset as the fall cue. The Company's approachis to ensue, as fr as possible, to always have suficiontliquiit to most ibltes when due, under Doth normalanc stessed conditions. Prudentiiquidty risk management implias maining sufficient cashand marketable secures and ensuring the avalabiity of aequte cre facies. The Company firances ts operations through equity, torrowings and working capital wth a view tormantain an appropriate mix between various sources of fnance to minimize rsk. The Companys finance department ams at maintaining teibiltyin funcing by keeping requiar commitedreditines avaiable The table below analyses the Compary’s financial \ablities ito relevant maturty groupings based on the remaining period atthe balances sheet to the contractual maturty date. The amounts disclosedinthe table are the contractual undiscourted cash flows.Ne REPORT 2016 Carrying Contractual] [Less than Between amount cash flows year 1105 years Rupees - At 31 December 2016 Mon derivative financial ibitities Lablites against assets Subject to finance lease 165,016,779 192,704,730 46,075,571 186,629,159 Trade and other payables 1,182,390,106 4,182,390,186 1,182,330,186 : Accrued finance cost 49,716.962 49,716,952 49,716,952 - Short term borrowings 3,800,251,334 _9,899,251,334 _9,899,251.334 - 5,177,374,053 Carrying Convactual | [Less than Beween amount cash flows 4 year 410 5 years ~ = Rupees - = - AL31 December 2015, Nan derivative nancial lables. Laitles against assets subject to finance lease 73,471,055 $8,013,101 18,297,495 69,715,666 Trade and other payables 376,406,854 376,406,854 376,406,854 5 Accrued finance cost 28971614 28.971.814 28,971,814 : Short term porrowings 1.,125,089,693 _ 1,125,089,803 1,803.940,016 _ 1,618,483 462 Tho contractual cash flows relating to the above financial iabilties have been determined onthe bas's ofinterest / mark-up rates effective atthe respective year-ends. The rates ofinterest/ mark-up have bsen disclosed inthe respectivenotest these financial statements 39.2 _Fairvalueottinancialinstruments Fair vlua is the price that would be receivedto sollan asset or paid to transfera liaiity in an orderty transaction between market particpants at the measurement cat. LUnderiying the definition of fair value isthe presumption that the Company is a going concern without any intention or tequirementto curtal materaly the scale of ts operations orto undertake a transaction on adverse ‘toms,$e. fauji foods ‘The ar vate c nancial assets and labile radedin active markets. sted equity shares are basecon the quoted market pices atthe close of adn onthe period end date. The quoted market prices used fr financial asseisheldby the Company s curent bid price ‘A financial instrument is regerded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker. industry group, arcing service ar regulatory agency a those prices represent actual and regularly occurring market transactions on anarm'slength bass. |FRS 13, "Fair Value Measurements’ requires the Company to classi fair value measurements using afar value tierarchy tat rellects the significance o the inputs used in making the measurements. The fair vale hierarchy has the following levels: = Quoted prices (unadlusted) in active markets for identical assets or atifties thatthe entity can access at tho measurement date (evel 1). = Inputs other than quoted prices included within Leva 1 that are observable forthe asset or labilty, ether directly or indirectly (level 2) Unobservable inputs forthe asset oriabilty (evel) ‘The following table shows the carrying amounts and far values of financial instruments and non-financial instruments including their levels inthe fair value hierarchy Fair value measurement of financial instrumen's a Saregama a Financial | teasand || yates: || st |) tas || oatz || toms svt | ease Sia smn toe ‘11.Decamber 2016 Fane msm neues ‘rte set gt ei sess ams SO: rwrae Se nana LR DOE te teeny ae “Vara ‘an Sewemreneomes mat haar 2 ge —_ one see Si mar * seainsr : oon ee S21 iwansr : jam : 00 52550 Fes es nese ware ins pst te ‘eee was sweaiume snr : Troantemwnamnis 824 smyeuine inane : Sotto ai Sousige Samana | : exept 3821 isricee sonia ——In iaeelae PIT) Si T_—, ee =a Ee fest || sate |) |] ewer | one | ss | suru | a cash we 1 December, Pat area cross wren aise feos ee fear) mae Setar ee mar fionss and Deion ay dmg) gun orca me ae fos rae mat _naras woo ae sas — Fiat rn vue Lin ants er boar wz rarss roars ecmiwowais = at) ape elt Sooners a \imowes noose eveivotmes/nhy at “eeary azaaas 39.21 3922 FEI HO016 Toa. 900% Fair value versus carrying amounts. The Company has not disclosed the fair values ofthese financial assets and lables as these are for ‘shortterm or reprice aves short term. Therefore, their carrying amounts are reasonable approximation offairvalue, Fairvalue of property, plant and equipment Freehold lard, buicings on freehold and, plant and machinery, electric and gas installations and cther ‘work equipment ave been cared at revalued amounts determined by professional vers level 3) based on thet assessment of market value as disclosed in note 7. The vduations are conducted by the Valuation experts appontec by the Company. Te vatuation experts used a merket based approach to arrive atthe far value ofthe Company's properties, This revaluation was carred out by Joseph Lobo (Privat) Limited independant veluors and consultants). Freehold land was revalied on te desis of Surrent marke: value wherezs other assets wee revalued onthebas's of dopreciatac market values, The ‘ost significant inoutinta this valuaton approach s price per acre for land. price per square foot fr Duleings and present operational condition ard ago pantand machinery andother asses, The effect of changes in the unobservable inputs used inthe valuatons cannot te determined with certainty, accordingly qualtetivedisclosue of ensitvty has nolteen presentedinthese fhancial statements&3 fauji foods Fry Wo 39.3 Capital riskmanagement The Company's prime objective when managing capital is to safeguard its ability to continue as a going concern so that it can continua to provide returns for shareholders, benefits for other stakeholders and to maintain a strong capital base to support the sustained development of its business. The Company manages its capital structure by monitoring return on nei assets and makes adjustments to it intho light of changes in economic conditions. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend paid to shareholders and / or issue new shares. ‘There was no change to the Company's approach to capital management during the year. The Company is ‘ot subjectto externally imposed capitalrequirements, 40. Date of authorization of issue These financial statements were authorized forissue on January 27, 2017 by the board of directors of the Company, 41. Events after the balance sheet date There areno subsequent events occurringafterbalance sheet date. Fm eee +6 Chief Executive Director Lahore&& FAUJI FOODS LIMITED fauji foods (Formerly Noon Pakistan Limited) FORM OF PROXY Registorod Folio No/ CDC Account No. We. _ NAME of (Address) being a member of FAUJI FOODS LIMITED , hereby appoint INANE) of (Address) oF failing him WANE of (Address) (also being a member of the Company) as my/our proxy to attend, act and vote for me / us and on my/our behalf at the 50” Annual General Meeting of the Company {o be held al Pearl Continental Hotel, Lahore on Thursday, March 30,2017 at 11:00 a.m. and atanyadjournmentthereof. ‘As witnoss my hand this. Dey of 2017. a | Revenue Signature of Shareholder 7Appoinier | “Stamp Witness 1 Witness 2 Signature. Signature — Name Name Address Address cnic#] ] NIC # Note: Proxies, in order to be effective must reach the Company's Registered office not less than 48 hours before the time for holding the meeting and must be duly stamped, signed and witnessed. Proxies of the Members through COC shall be accompanied with attested copies of their CNIC, 'SECP's Circular No. 1 dated January 26th, 2000 is on the reverse side of the formSECURITIES AND EXCHANGE COMMISSION OF PAKISTAN State Life Building 7, Blue Area, Islamabad January 26, 2000 Circular No. 1 of 2000 TOF Sub: GUIDELINES FOR ATTENDING GENERAL MEETINGS AND APPOINTMI PROXIES ‘The shares of @ number of listed cornpanies are now being maintained as “oook entry Security" on the Central Depository System (CDS) of the Central Depository Company of Pakistan Limited (CDC), Ithas. come to the notice of the Commission that there is some confusion about the authenticity of relevant documents in the matter of beneficial owners of the shares registered in the name of CDC forpurposes of atiending the general meetings and for verfication of instruments of proxies. The issue has been ‘examined and pending the further instruction to be issued in this regard, the following guideline for the ‘convenience of thelisted companies and the beneficial ownersare laid down: ‘A. Attending of meeting in person by account holders and / or sub-account holders and persons whose ‘socuritios are in group account and theirregistration details are uploaded to CDS: (1) The Company shall obtain ist of beneficial owners from the CDG as per Reguiation # 12.3.5 of the CDC Regulations. (2) incase of individual, the accountholder or sub-account holder and/or the person whose securtties are ingroup account and their registration details are up~oaded.as perthe Regulations, shall authenticate his. identity by showing his original Computerzed National Identity Card (CNIC) or original passport at the time ofaitending themeeting. (3) _ Incase of corporate entity, the Board of Directors’ resolution | power af attorney with specimen signature ofthe nominee shall be produced atthe time of the meeting, B. Appointment of Proxies (1) thease ofindividual, the sccount holder oF sub-account holder and /or the person whose securities are in {group account and their registration details are uploaded as per tne Reguiations, shail submit the proxy formas perrequirement notified by the Company. (2) The proxyformshallbe witnessed by the two persons whosenames, addresses and CNIC numbers shall be mentioned on the form, (3) Attested copies of CNIC orthe passport of the beneficial owners and the proxy shall be furnished withthe proxy form (4) The proxyshall produce his orginal CNIC or original passpor at the ime ofthe meeting, (6) _ Incase of corporate ently, the Board of Directors! resolution / power of attomey with specimen signature shall be submitted alongwith proxy form tothe Company.fauji foods (ee) etiaBheid late ) Gest LHS 466 ret il, WS ocutig inl temsil, wt Sacto AL IW PE SRL AS Ah Sy AL SOIL 5SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN ‘State Life Building 7, Blue Area, Islamabad January 26, 2000 Circular No. 1 of 2000 Sub: GUIDELINES FOR ATTE! PROXIES ING GENERAL MEETINGS AND APPOINTMENT OF ‘The shares of a number of listed companies are now being maintained as "book entry Security” on the Central Depository System (CDS) of the Central Depository Company of Pakistan Limited (CDC). Ithas come to the notice of the Commission that there is some contusion about the authenticity of relevant documents in the matter of beneficial owners ofthe shares registeredin the namie of CDC for purposes of, attencing the general meetings and for verification of instruments of proxies, The issue has been ‘examined and pending the further instruction to be issued in this regard, the following guideline for the ‘convenience ofthe listed companiesand the beneficial owners are laid down: A. Attending of meeting in person by account holders and / or sub-account holders and persons whose securities are ingroup account and their registration details are uploaded to CDS; “ (2) @ ‘The Company shall obtain list of beneficial owners from the CDC as per Regulation # 12.3 Sof the CDC Regulations. In case of individuals, the account holder or sub-account holder and / or the person whose securities are ingroup account and their registration details are up-loaded as per the Regulations, shall authenticate his identity by showing his original Computerized National identity Card (CNIC} or original passport at the time of attending the meeting. Incase of corporate entity, the Board of Directors resolution / power of attomey with specimen signature ‘ofthe nominee shall be produced at tho time ofthe eating. B. Appointment of Proxies “) 2 @ (4) Incase of individual, the account holder or sub-account hoidar and / orthe person whose securities are in ‘group account and their registration details are uploaded as per the Regulations, shall submit the proxy form as per requirementnotified by the Company. ‘The proxy form shall be witnessed by the twopersons whose names, addresses and NIC numbers shal be mentioned on the form. ‘Attested copies of CNICor the passportof the beneficial owners and the proxy shall be furnished with the proxy form. ‘The proxy shall produces original CNIC or original passport atthe time of the meeting. Incase of corporate entity, the Board of Directors’ resolution / powerof atiomey with specimen signature: shall be submitted alongwith proxy formto the Company,GOVERNMENT OF PAKISTAN ‘SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN NOTIFICATION Islomabad, the 9” September, 2015 5n.0.9 ZY (1\/2035- in exercise of the powers conferred by Section 5068 of the ities and Exchange Commission of Companies Ordinance, 1984 [XLVIl of 1984), the Se: Pakistan is pleased to direct that a company listed on a stack exchange in Pakistan shall, while issuing annual accounts and balance sheet, incorporate the following informational message on ‘JamaPunji, with immediate effect Be aware, Be alert, Be safe Learn about investing at wawwrjamapunji-pke 1B mrevionce a rvontmort’chaceme % Sebacmmcn w.Aennseest Seen © Searepltegetccnten tor ‘Bs [No. EMD/website-regulation/74/201 - Oy ron YAa\s (Bushra Aslam) Secretary to the Commissionfauji foods Si Keeraele edt tl touly undid rind Los aug Git.) geste pa sve PB te 2017 R27SNe adele NEM EAs (2018 Aste eh Hie bitetee a Shales 31.85 A eso i NAM seit 96TH Jit oe ele. “be bey 8.75 OU RL BL lai, 1.07fauji foods —— rei Wels WENO wl ABO ALI ne Pe Sell Ul Be AL Cato ha) we BRRILE De SLUn 218 hese crn atahe Meee Lemp ele bieu-& LE 2017 LER SSh 20107 26 ore iLoyt = 4 Sut timenssteuiset rte tl MLL Ive vd nz bY 2016 531-2 aE thibhoby hath eLmuPoypstlHLL vd ngr BV2017/5 31-3 werent hLbd yl be Ui eel fier 4 iho PF Spm peeled BIT® (used?) 2017 Gb 30020176424 an OPE 48 ee) ke ky GARDE wiley EH avi QOD SHIT: 3 : aig’ pbighl seh LLL Ler tuiebifing Wee stmaid LA ahve MES ~ 4 LPL, duh Pe Lai rene S07 L p66 ne OS Page sl SUBS rt YL Pt iene Selects! 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