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Rs 4.3 billion
Net sales 2008
Sanofi-aventis, a global leader in the pharmaceutical industry, researches and develops medicines and vaccines to help improve the lives of the greatest possible number of people. R&D explores a broad spectrum of innovative approaches, and develops new products in the key areas of therapeutic expertise: Thrombosis, Cardiovascular diseases, Diabetes, Vaccines, Oncology, Central Nervous System disorders and Internal Medicine. The Company's growth is attributable to a regional approach to business operations, backed by a comprehensive portfolio of innovative products, mature prescription medicines, consumer health products and generics, as well as vaccines. By virtue of its commitments, sanofi-aventis constantly adapts its development model to the world's emerging human and economic problems.
* Including temporary employees
The Colors of Life
To create & sustain value by being recognized as a Pharmaceutical Industry Leader:
• • • Valued by patients & healthcare providers Sought-after as an employer Respected by the scientific community & our competitors
Our core strategy is to:
The abundant color in our rich palette is drawn from the hues of the millions of lives saved and the quality of lives improved by our products. The liberal use of color in the 2008 sanofi-aventis annual report signifies good health and well-being while reflecting the vibrancy of life. Create value by rapidly launching and successfully marketing innovative pharmaceuticals that satisfy unmet medical needs in large patient populations. Focus commercial resources on strategic brands to drive sales growth and maximize the value of existing and new global brands. Aggressively recruit and retain top talent, enhancing our capabilities in drug innovation and commercialization.
The key human and social component that links us all together, regardless of ethnic origin, culture or position, as we work for our mutual growth.
The power to control risks, the fighting spirit which helps us to both challenge ourselves and move forward to reach our objectives.
The freedom to explore the unknown: acting with our hearts and not just our heads, as we bring the future alive.
The basis of our endeavors: a source of excellence, achievement and innovation, the key to our future!
The capacity for imagination: using our intuition, making unexpected and productive connections, innovating in all our actions and communications.
The capacity to rally together as we drive back disease and give hope a chance: our mutual sense of responsibility when faced with adversity.
L.O. MCB Bank Ltd. Sector 22.com Compliance yasir.sanofi-aventis.pirmuhammad@sanofi-aventis. Karachi .74900 Shakeel Mapara Dr. Standard Chartered Bank The Royal Bank of Scotland Ltd.com Medical Affairs aman. Naqvi Aslam Sheikh Aamer Waheed Zubair Rizvi Laila Khan Registrars & Share Transfer Office FAMCO Associates (Pvt. State Life Building No. 2-A. I. Sohail Manzoor Yasir Pirmuhammad URL www. Amanullah Khan Yasir Pirmuhammad (Chairman) (Member) (Member) (Secretary) Non-Executive Director Non-Executive Director Executive Director Head of Audit & Compliance Legal Advisors Azfar & Azfar Haidermota & Co. Chundrigar Road.74000. Moin Mohajir (Alternate Dr.Z. .Z. Grunwald Eric Le-Bris Jean-Marc Georges M. Amanullah Khan M.I.com Auditors Ford Rhodes Sidat Hyder & Co.A. Karachi . Amanuallah Khan) (Alternate Shakeel Mapara) (Alternate Muhammad Amjad) Chairman Managing Director (Alternate Arshad Ali Gohar) IS Steering Committee Tariq Wajid Yasir Pirmuhammad M. Khan Mamoona F. Saadat Yar Khan & Co.Z. Box No.74000 Board Share Transfer Committee Tariq Wajid M. Karachi .pk Management Committee Tariq Wajid Masaud Ahmed Masood A. N.) Ltd. Company Secretary Muhammad Irfan Board Audit Committee Syed Hyder Ali Eric Le-Bris Dr.06 07 Board of Directors Syed Babar Ali Tariq Wajid Pir Ali Gohar Tariq Iqbal Khan Syed Hyder Ali J. Amanullah Khan Salman Ahmed Masaud Ahmed Laila Khan Contacts Company Information laila. Korangi Industrial Area. Moin Mohajir Registered Office Plot 23. Chartered Accountants Bankers Citibank. Moin Mohajir Muhammad Amjad Dr.Z. 4962.com. Ghani Law Associates Bilal Law Associates Syed Qamaruddin Hassan Kundi & Kundi Postal Address P.khan@sanofi-aventis. Moin Mohajir Murtaza Nooruddin Ethics Committee Yasir Pirmuhammad Dr. Deutsche Bank AG Habib Bank Ltd.khan@sanofi-aventis.
A new ultra modern production facility is currently under development in Karachi. The project was completed on schedule in December 2008 and is now in production. Liquids Transfer Project: area finishing works in progress Haemaccel Extension Project: incubation area extension Haemaccel Extension Project: new air handling unit . The project included an extension to the plant area as well as the installation of new utility and production equipment. The plant is expected to commence commercial production by May 2010. Industrial Affairs initiated 2 major projects in Karachi to: (i) modernize and upgrade production facilities & (ii) to enhance the production capability of Haemaccel. This is insufficient to meet market demand. Haemaccel Extension Project: new WFI plant Sanofi-aventis continued to make considerable investment in Pakistan during 2008. Industrial facilities have to be both reactive and competitive. The objective of the Haemaccel extension project was to increase the production capacity of the plant from 1.2 million packs per year.9 million packs per year. Upon the completion of this plant the annual production capacity will increase to 40 million bottles per year due to the installation of two state-of-the-art. High-tech product manufacturing plant will also be installed in this plant to ensure production of larger batch sizes and improved cGMP. Our capacity to react to new demand depends on the flexibility and creative potential of our industrial facilities.08 09 Innovation & investment in production Production is a key element in the pharmaceutical sector.2 million packs per year to 1. highspeed filling lines. Liquids Transfer Project: external view of building Liquids Transfer Project: installations in final phase Liquids Transfer Project: installations in final phase The scope of the liquids transfer project is to relocate the manufacturing of all liquid products to Karachi and divest the Wah production site. The Haemaccel plant produces 1.
oncology. which are unrivalled in the market for their unique mechanism of action. • Psychiatric disorders Defining bipolar psychiatric disorders • Diabetes Identifying appropriate therapeutic options to control blood sugar and blood pressure • Deep Vein Thrombosis (DVT) Defining the magnitude and burden of DVT. central nervous system disorders and internal medicine. They work across disciplines. diabetes and cancer. the Medical Department made significant progress. 10 11 Changing the way we look at disease In 2008.000 sanofi-aventis R&D employees are focused on major therapeutic areas: thrombosis. heart ailments. and investigating all possible links between the various expert therapeutic areas of the Company. more than 19. • Acute urinary retention Developing an understanding of factors that contribute to the successful management of acute urinary retention associated with benign prostatic hyperplasia in men. The department focused on disseminating scientific clinical data and findings of the most current published medical literature related to disease areas and new treatment modalities particularly in the fields of blood pressure control. This testifies to the considerable creativity of the teams involved.Supporting scientific discovery Throughout the world. undertaking 13 clinical studies thereby putting Pakistan on the map of global medical science. • Breast cancer An initiative to help define standards of care: characterizing the clinical profile of patients with early stage breast cancer and their management at country and global level. Today. 30 to 40% of the R&D portfolio is made up of 'first-in-class' compounds. exploring all the potential therapeutic indications of each new compound. a condition resulting from blood clotting in the deep veins and lungs Sanofi-aventis is committed to the improvement of standards of health care in Pakistan. cardiometabolism. A large proportion of R&D activities are also dedicated to Life Cycle Management which involves identifying and confirming new indications and modes of administration for commercially available drugs. vaccines. .
Pharma Associates & Field Executives) • • • • Team Skills Organizational Skills Mentoring and Guiding peers Giving and receiving feedback . our human capital. Employees of various seniorities and departments from all over Pakistan benefited from these opportunities. we believe in investing in our most valuable resource. 12 13 Major training programs Sales Certification Olympics (for Sales Force) Selling Model practical implementation process Communication Skills (for Sales & Non-Sales Employees) • • • The importance of communication in an organization Communication Channels Communication Barriers Business Management Development Program (for New / Promoted DMs) • • • Basic Management Skills People Management & Business Management Skills Coaching & Business Planning Skills Cross Product Training (for Sales Force) Training on different products for re-structuring and re-alignment of teams Leadership Essentials (DM Competencies) • • • Competencies: What and Why Identified Core Competencies for District Managers Practical Behavioral demonstration of each competency through role-plays and practical learning activities Initial Sales Training Program (for Newly Inducted Pharma Associates) • • • • Company's orientation Basic Anatomy and Physiology and Disease Area Product and Competition Profile Selling Model Gearing up for the Future (for Sr. These activities are integral to keeping our personnel abreast of the latest trends and advances while honing skills in their respective areas of expertise. A multitude of training seminars and workshops were conducted throughout 2008 covering a diverse range of topics and areas.Seminars & workshops At sanofi-aventis.
14 15 Leadership Quest (for Sales & Business Managers) • • • • • Leadership Challenges Leadership Styles Sales Force Management Change Management Business Communication Licensed 2 Lead (Train the Trainer) • • • Regional Initiative for District Manager's Development Identifying your Leadership Style MBTI Lantus Excellence (for Lantus Team) • • Advanced Selling Skills Reinforcement of Adoption Pathway Telfast Product Shoot 2007 .
but I wanted B. After working at various companies in Pakistan. Sanofi-aventis is all about corporate social responsibility. Ali Hassan Product Manager “While pursuing my M. I feel fortunate to be in such a progressive environment. Com. the opportunity last.Our people Our strength “Sanofi-aventis promotes diversity by providing a focused long-term career through crossfunctional exposure. In order to progress.B. nurture them and motivate us by providing a platform to excel. Sanofi-aventis was extremely supportive in my decision and offered me a position in Human Resources. and individual project time.B.S. but learning opportunities were very limited.” Dr. Projects are and each year geared around your areas of interest and leaves me with can change as you get a feel for the different more skills and functions in a business and as you discover confidence than the your forte. As an intern. My managers are easily to work with such a talented group of approachable and share their people was an incredible bonus for wealth of knowledge with me. This challenging project provided me with tremendous learning experience and helped me sharpen my skills.S.B. Although I worked in a multinational pharmaceutical in Canada. it stands firm on all moral and ethical grounds relating to the pharmaceutical industry. I was new to the pharma industry and the national and international exposure I got laid a strong foundation for me. It is Junaid Khan a privilege to work for a company that Student CBM invests in its people!” Safdar Raza Imports Specialist Masters in Urdu Advance Karachi University BS .PIMSAT “I have been associated with the company for seven years.” as a District Manager in Sales. as a Product Manager. Recently. both exciting and Regulatory Affairs rewarding.” Syed Zeeshan Hasan Assistant Manager. At the time. I get to explore and utilize my analytical and project management skills to the maximum.Engineering . I feel privileged to work with a cohesive team of talented individuals and strategic thinkers. My four Asma Zuberi years in Sales were Assistant Manager.” attend various trainings abroad which further contribute to my learning. it was a moment of great pride when I joined sanofiaventis in 2007. I found the employees very supporting and encouraging. where every member of the group plays an important role. this is exactly the type of organization I would like to be associated with. Here. I've been given the opportunity to join the Marketing Dept.” Salman Raza Assistant Industrial Affairs Controller B.GIKI “My experience interning at sanofi-aventis has been outstanding. MA Economics Karachi University ACCA “I am thoroughly enjoying working at sanofi-aventis. sanofi-aventis fits that description just right! The multinational aspect is great as I get to interact with my counterparts in other countries. I never imagined that one day I’ll be working in a multinational pharmaceutical. I was given the opportunity to work on a project preparing CAPEX for 2009 which would become a part of the budget plan. where I’m learning something new every day! Thank you sanofi-aventis for giving me diversity in my career!” Furqan Hussain Field HR Manager (South) MBA . The supportive and friendly environment adds to the experience and contributes to my personal and professional growth. your aventis for time is divided between working the past with other members of the organization three years.” Dr. Since I am a firm believer in ethics and integrity. I always envisioned myself at a dynamic organization with s t ro n g l e a d e r s h i p . Maliha Zahir Assistant Medical Manager M.. I get to me. I joined the organization in Industrial Supply Chain and as a development move. “I I have acquired a have wealth of knowledge been and am more focused working about my future career at sanofigoals.-DOW Medical University MBA-IQRA University CCRA-McMaster University.B.” Dr. it is imperative to work for a dynamic and innovative organization. I'm very thankful to the management for providing me with this crossfunctional exposure. I can say with confidence that sanofi-aventis “I joined offers the best working environment and sanofi-aventis ethical practices. I have interned at a few banks before. . I value the culture of teamwork in the company.B. I returned to Pakistan and decided to rejoin sanofi-aventis.” Samra Khan Student IBA “My 3 years at sanofiaventis as a Medical Manager have provided me with endless learning opportunities. transferred to Business Development. S. This diverse experience will assist in the strengthening and further advancement of my career in this industry.CBM . Our team leaders recognize our individual strengths. Taking steps for a stronger tomorrow while taking care of the present is one of the traits of a visionary organization.Hamdard College of Medicine MBA Health Management (ongoing) . Canada “My internship at sanofiaventis has been invaluable.S. Additionally. Business Development “For me.B. Syed Moin Hussain Business Manager M.Pharmacy further professional Karachi University enrichment.
Lantus®. the first basal insulin analogous to slow-action human insulin. glycemic control will deteriorate under oral treatment. 31% growth 87. 85 years The most prescribed insulin in the world. of innovation in diabetes 1921 Insulin was identified for the first time in Canada by Frederick Banting and Charles Best. an anti-hypertensive agent. and many physicians hesitate to start insulin therapy for Type 2 diabetes. as slight pressure suffices to inject the right dose (30% less force than similar devices). which acts with no pronounced peak and makes it possible to maintain a low. up until the production of the glargine insulin . the most widely prescribed insulin in the world. later to become part of sanofi-aventis. amputations) complications associated with diabetes due to the late onset of treatment. 2000 The launch of Lantus® using recombinant DNA. from paediatric combination vaccines and vaccines against influenza and meningitis to booster shots.Comprehensive treatment for people with diabetes Sanofi-aventis offers a complete range of diabetes treatments that target each stage of the disease.2 million 1976 Researchers produced the first sample of human insulin. Taxotere®. effective and welltolerated treatments to doctors for their patients. Amaryl®. who used a raw pancreatic extract to save the life of a young boy in a diabetic coma. They can easily see the insulin dose and the injection is almost painless. vaccines for travellers and for regions where diseases are endemic. disposable pen that enables patients to inject up to 80 units of Lantus® insulin. It is the only basal insulin offering 24-hour efficacy with no pronounced peak. 1953 Hoechst launched the first insulin with 24-hour efficacy. a long-acting insulin analog for patients with Type 1 and Type 2 diabetes. and singled out SoloSTAR®'s remarkable conception and leading-edge technology for improving the ability of patients to observe the most suitable treatment. today's challenges Lantus® SoloSTAR® combines the best of Lantus®. people with diabetes. In such conditions. since it is impossible to deliver a sufficient dose. Every year. if necessary in one shot. Clexane®. It delivers genuine comfort to patients. . Lantus® is indicated for people with Type 1 (adults and children) and Type 2 (adults) diabetes. 1923 Hoechst. and Plavix®. the leading brand worldwide in the treatment of diabetes. By combining a daily dose of Lantus® with an intuitively easy-to-use injection pen that delivers a quick shot. Lantus® SoloSTAR® helps patients overcome the barrier to acceptance of insulin injections and makes it easier to manage diabetes on a daily basis. for the treatment of Type 1 and Type 2 diabetes in adults. Lantus® SoloSTAR® is a pre-filled. during or after a meal by patients with Type 1 diabetes and advanced Type 2 diabetes. This marked the start of a long process of research into the disease. the leader in a growing market where prophylaxis is still under-developed. whose broad range of indications places it in the first rank among branded cytotoxic agents.Lantus®. This can increase the risk of cardiovascular (heart disease and stroke) and microvascular (kidney and ophthalmologic disorders. SoloSTAR® was awarded the 2007 GOOD DESIGN prize by the Chicago Athenaeum Museum of Architecture and Design. They postpone the decision as long as possible. Innovative medicines: Lantus®.. sanofi-aventis addresses the most urgent medical needs. It was designed to meet the everyday needs of Simple and effective insulin therapy Sales Rs. the Group's Vaccines division offers the industry's broadest range of products. Sanofi Pasteur. 2008 Launch of Lantus® SoloSTAR® and Apidra® SoloSTAR® in Pakistan. 2006 Launch in the United States of Apidra®. whose potential with eligible yet still un-treated patients opens up opportunities for growth. a fast-acting human insulin analog taken before. bringing innovative. third-generation orally administered hypoglemic sulfonylurea indicated for the treatment of Type 2 diabetes. 18 19 A portfolio addressing product With its extensive product portfolio. Apidra®. Patients tend to be frightened of insulin. was the first company to produce insulin. particularly suited for Type 2 diabetes. Lantus® is the most widely prescribed insulin in the world. 1936 Hoechst developed the crystallization process that improves the purification and tolerance of insulin. with state-of-the-art sanofi-aventis technology to facilitate life for patients. 2007 Launch of Lantus ® SoloSTAR ® and Apidra ® SoloSTAR®. a new fastacting insulin analog. One injection a day is sufficient to meet all basal insulin needs. this institution awards the world's most prestigious design prize. Aprovel®. regular level of insulin for 24 hours using a single daily injection. Genetic engineering drove considerable progress. since patients are afraid of injections and the treatment's daily demands.
million 66. Aprovel® is indicated for the treatment of hypertension and diabetic nephropathy in patients with Type 2 diabetes. thereby preventing possible acute or chronic complications associated with deep vein or arterial thrombosis. It acts by blocking the effect of angiotensin. sanofi-aventis researchers working at the Montpellier research and development site discovered irbesartan. Clexane® delivered 2008 sales of over Rs.Amaryl® continued to grow at a healthy rate of First-line oral treatment for type 2 diabetes Amaryl® is the only sulfonylurea to have demonstrated 24-hour efficacy against both fasting and postprandial hyperglycemia in a once-daily dose. Launched in Pakistan in 2007. 159 million at a healthy growth rate of 16%. Plavix® is rapidly consolidating its position as the foremost platelet antiaggregate agent for the secondary prevention of stroke. by stimulating the physiological mechanism of biphase insulin release. the hormone responsible for the contraction of blood vessels. Today. A new form of CoAprovel® (irbesartan and hydrochlorothiazide) helps more at-risk hypertensive patients to reach their blood pressure goals. A dynamic brand In 1987. 10% 20 21 Sales over Rs. The most widely prescribed low molecular weight heparin in the world Clexane® is the most widely studied and used low molecular weight heparin (LMWH) in the world.9 102% growth Extensive experience on efficacy and tolerability Millions of patients all over the world are being treated with Plavix® for the prevention of ischemic events caused by atherothrombosis. which eventually became Aprovel®. Clexane® is an anti-coagulant used to inhibit the formation of clots in veins and arteries. confirming the favourable benefitto-risk ratio of long-term management of atherothrombosis. It has been used to treat an estimated 200 million patients in more than 115 countries after 20 years of development and is approved for more clinical indications than any other LMWH. the first fixed dose combination of a sartan and hydrochlorothiazide indicated as treatment for initial use in hypertensive patients who are likely to need multiple drugs to achieve their blood pressure goals. . Aprovel® has an impressive track record of over three billion tablets sold every year in more than 100 countries. thereby permitting the normalization of arterial blood pressure. It is also indicated in cases of severe and moderate hypertension.
bone and joint infections. It is a ready-for-use solution for intravenous infusion and can also be used as a carrier solution for various medicines. Sales over Rs. urticaria and pruritis. Flagyl® is effective for the treatment of parasitic infections caused by Trichomonas vaginalis or Entamoeba histolytica known to cause diarrhoeal disease. chronic or recurrent lower respiratory tract infections. skin and soft tissue infections. allergic conjunctivitis.9 23% growth Widely prescribed for gastroenteritis Today a household name and among the top-selling drugs in the country. urinary tract. and treats nausea and vomiting after surgery and is effective in the relief of apprehension and inducing light sleep from which a patient can easily be aroused. million 432.e. resulting from bleeding or from a shift in plasma volume between the circulatory compartments. Tarivid ® continued to grow at a rate of 6%. skin and soft tissues.An innovative antibiotic Claforan® is a third-generation Cephalosporin injectible antibiotic for the treatment of a wide range of infections including those of the respiratory tract. It is also indicated for surgical prophylaxis (i. Phenergan also prevents motion sickness. prevention of surgical infections). million 829. Sales over Rs. devoid of sedative effects and with a prolonged duration of action allowing administration once every 12 or 24 hours. and meningitis due to susceptible pathogens in both adults and children. It is indicated for the treatment of hay fever and chronic idiopathic urticaria.9 9% growth 22 23 16% A life-saving essential Double-digit growth Haemaccel® (Polygeline) is a plasma substitute for volume replacement used to correct or avert circulatory insufficiency due to plasma / blood volume deficiency. Tarivid® is prescribed for acute. urinary tract infections and infections of the genital organs. Claforan® is manufactured in a state-of-the-art facility located in Karachi. The Telfast-D® formulation combines this antihistaminic with a prolonged-release decongestion agent. . It is useful in perennial and seasonal allergic rhinitis. Non-sedating allergy relief Broad spectrum antibiotic Tarivid® (Ofloxacin) is a fluroquinolone antibiotic with a broad anti-bacterial spectrum. Phenergan® (promethazine) is one of the most established antihistamines in the local market. Telfast® is an effective and potent antihistaminic agent.
24 25 ® A reference chemotherapeutic agent for several types of cancer Taxotere® is a drug in the taxoid class. Eloxatin® is a new-generation platinum salt that has brought major progress in the treatment of metastatic colorectal cancer by making surgery possible for a significant proportion of patients with isolated hepatic metastases by rapidly and significantly reducing metastasis size. which inhibits cancer cell division by essentially “freezing” the cell's internal skeleton. These two approaches are very often combined (and in some cases they include hormone therapy) to stop cell proliferation and the growth of the tumour. comprised of microtubules which assemble and disassemble during a cell cycle. thereby preventing cancer cells from dividing and resulting in their death. and different processes have now been identified. growth. the research strategy consists in attacking cancer on all fronts by targeting most of the mechanisms of action involved in the development. Modest growth of 3. exploring innovative avenues to optimise patient management and care and entering into long term partnerships to discover and develop powerful new agents and strategies for prevention and treatment so as to provide all patients with the best possible solutions. 201% Remarkable growth . anti-cancer treatments are either used to destroy all cancer cells (in which case they are known as cytotoxic agents). They either cause it to disappear or at least stabilize the tumour. which is aimed at specific types of cancer (such as prostate cancer). or aiming at more targeted treatments that block the cancer cell's mechanisms of action. Eloxatin® holds out the hope of an extended lifespan and possible recovery for these patients.Oncology Attacking cancer on all fronts Sanofi-aventis' vision is to attack cancer on all fronts. Cancer means an uncontrolled proliferation of cells due to genetic mutations. Taxotere® promotes assembly and blocks disassembly.8% for Taxotere® despite a challenging year. Apart from hormone therapy. and spread of cancer cells. sanofi-aventis now has a better understanding of the way cancer grows and spreads. targeted therapies. Since cancer is a multi-faceted disease. Sanofi-aventis' commitment to oncology is demonstrated by a series of successes (docetaxel and oxaliplatin) and its research into new therapeutic mechanisms. Thanks to many years of research. A cornerstone of chemotherapy for metastatic colorectal cancer in combination with new.
and this allows the stomach and esophagus to heal. the production of acid is decreased. children and infants. . Rhinathiol® has been launched in different strengths for adults. Rhinathiol® (carbocisteine) is a mucolytic agent for the adjunctive therapy of respiratory tract disorders characterized by excessive. Proton pump inhibitors (PPI) block the production of acid by the stomach. viscous mucus. gastroesophageal reflux disease (GORD/GERD) and Zollinger-Ellison syndrome. including otitis media with effusion (glue ear) and chronic obstructive airway disease. peptic ulcer disease (PUD). Omeprazole blocks the enzyme in the wall of the stomach that produces acid. all caused by stomach acid. By blocking the enzyme.New launches Bolstering our portfolio 26 27 The initial response to the launch of Xerosec® has been extremely encouraging. Xerosec® (omeprazole) is a proton pump inhibitor used in the treatment of dyspepsia.
a new business unit was set up in sanofi-aventis Pakistan limited to handle the vaccines business in Pakistan. pneumococcal infections. Seasonal influenza. effective and easier-to-use vaccines to market.Creating vaccines. Sanofi Pasteur offers the widest range of vaccines for 20 diseases. The product portfolio consists of the following: Brand Name Generic Name Tetanus Toxoid Vaccine Poliomyelitis Vaccine Inactivated Vaccine against measles(schwarz strain) Mumps (urabe AM-9 strand) and Rubella (wistar RA 27/3 strain) Pneumococcal Polysaccharide Vaccine Rabies Vaccine Oral Poliomyelitis Vaccine Type 1 Trivalent Oral Poliomyelitis Vaccine Typhoid Vaccine Haemophilus influenzae Type b Vaccine (conjugated) Yellow Fever Vaccine Hepatitis A Vaccine Hepatitis A Vaccine Anti Rabies Immunoglobulin Adsorbed Diphtheria. generally as a preventive measure but sometimes as a therapeutic solution. adolescents and adults around the world. With tomorrow's health challenges in view. is working on both innovation and improvement of vaccine delivery and modes of administration. Acellular Pertussis & Inactivated Poliomyelitis Vaccine Influenza Vaccine Hepatitis B recombinant Vaccine Hepatitis B recombinant Vaccine Live attenuated varicella virus Polysaccharide Meningococcal A + C Vaccine Vaccines: A key strategic focus Sanofi Pasteur. tuberculosis. the Group's Vaccines division. protecting life 28 29 During 2008. sanofi pasteur remains at the forefront of influenza pandemic preparedness. Sanofi Pasteur continued to bring innovative. Adsorbed Diptheria. the sanofi pasteur R&D team is developing new generations of vaccines. Chlamydia and Type B meningitis.Tetanus. for example. is a constant concern for health authorities throughout the world. cytomegalovirus. Vaccines provide an effective response to major diseases.5 ml Euvax B Injection 1ml Okavax Injection Polysaccharide meningococcal A +C vaccine . Either alone or in partnership. In addition. To prevent diseases in children. Tetanus. the research team is attacking such major diseases as dengue. the vaccine division of sanofi-aventis group. Tetavax Imovax Polio Trimovax Pneumo 23 Verorab Oral monovalent Type 1 Opvero Typhim Vi Act-HIB Stamaril Avaxim 160 Avaxim 180 Favirab TetraAct-HIB Pentaxim Vaxigrip Euvax B Injection 0. malaria. is the largest company in the world devoted entirely to human vaccines. the R&D team of sanofi pasteur.Pertussis and conjugated Haemophilus Type b Vaccine Influenza type b conjugate. and sanofi pasteur is the undisputed leader in the field of influenza prevention.
In 2008 this program was extended to 5 countries including Pakistan. 30 31 Providing help. A long term humanitarian strategy Organized around long term partnerships. “My child matters” supports hospitals. sanofi-aventis' humanitarian sponsorship implements innovative. a WHO recognized organization that has a modern. The blood camp received an enthusiastic response from employees and was a practical application of the value of “respect” as it demonstrated respect for human life and commitment to the motto: “because health matters”. early diagnosis. To reduce inequalities and provide better access to health for different populations and countries. mostly comprising school children. which was launched jointly in 2004 by sanofi-aventis and the International Union Against Cancer. well-equipped blood storage facility. . foundations and NGOs to develop pragmatic approaches to improve awareness.2008 was an active year for sanofi-aventis Pakistan in terms of Corporate Social Responsibility (CSR). This unique partnership aims to step up the fight against childhood cancer in countries where paediatric oncology is still struggling to become established. Blood Camp Blood Donation Drive was held in association with the Patients' Welfare Association (PWA). The PWA provides blood to the underprivileged patients of Karachi free of cost. Several CSR activities and projects were implemented. Sanofi-aventis Pakistan collaborated with the Pakistan chapter of the Rabies in Asia Foundation to raise awareness and understanding about the importance of rabies prevention at an event held at the Indus Hospital providing free of cost rabies treatment round-the-clock. lasting support Rabies Prevention September 28 is World Rabies Day. access to care and treatment. the responsibility of a leader programs for those most in need. sanofi-aventis' humanitarian sponsorship is engaged today in building long term partnerships Innovative partnership programs include “My child matters”. Cancers in children show the widest gap in survival rates between rich and developing countries. A story was read out underlining the importance of washing the wound immediately with soap and cleaning it with an anti-septic ointment. The President of the Infectious Disease Society and several doctors addressed the gathering. pain control and better management of the social and cultural aspects of the disease for both children and their families. cautioning them against contact with stray dogs and alerting them to the danger of rabies.
An event was held at SKMCH (Lahore) where the importance of screening and early diagnosis was Diversity Day Diversity Day was organized to recognize and celebrate the contribution of women to the success of the company.Considering the global safe drinking water crisis and its rapid escalation in Pakistan. sanofi-aventis' leading product Flagyl® teamed up with Nestle® Pure Life™ in a venture to spread awareness about health and hygiene. almost 200 clinics throughout Pakistan were provided with Nestle® hot and cold water dispensers along with three months of free water supply. emphasizing and demonstrating self-examination techniques and addressing common misconceptions to an audience of women. NIMRA. As a responsible corporate citizen. Employees contributed generously. Breast Cancer Awareness Sanofi-aventis Pakistan collaborated with Shaukat Khanum Memorial Cancer Hospital & Research Centre (SKMCH) to support breast cancer awareness. during which an external speaker made a presentation on risk factors. university students and NGO representatives. displaying “solidarity” with their countrymen and “respect” for human life. which is an institute in Jamshoro also collaborated with sanofiaventis Pakistan and AKUH by providing mobile mammography vans. A second program was organized in partnership with the Aga Khan University Hospital (AKUH) in Karachi. stressed to an audience comprised of patients. where free of cost breast cancer screening sessions were conducted. signs and symptoms of breast cancer. . During the summer. 32 33 Earthquake Relief Drive The province of Balochistan was hit by a devastating earthquake claiming over 300 lives and displacing thousands. The collection was presented to Dawn Relief. sanofi-aventis Pakistan organized an Earthquake Relief Drive. a leading social welfare organization working in the affected region. when water-borne diseases are at their peak.
diagnosis. International recognition of excellence came from the South Asian Federation of Accountants (SAFA) that holds an annual 'Best Presented Accounts Awards Competition'. care. under different categories. The campaign included a series of programs. Amaryl patient awareness campaign entitled. Patient awareness literature was also distributed during these presentations. management and complications. which were run across the country in major public and private diabetic centers/clinics. sanofi-aventis supported two newspaper supplements commemorating World Diabetes Day by contributing articles delivering key messages on diabetes signs. transparency. are conferred on the basis of evaluation administered by SAFA's committee on improvement. Externally.34 35 Diabetes Awareness World Diabetes Day was commemorated by spreading internal and external awareness about the disease. The awards. BMI assessments. . symptoms. a prestigious annual event organized by a joint committee of the Institute of Chartered Accountants of Pakistan (ICAP) & the Institute of Cost and Management Accountants of Pakistan (ICMAP). transport & shipping category. In addition to free diabetes screening. The 2007 corporate report The sanofi-aventis Annual Report for 2007 won the 5th prize in the 'Chemical & Fertilizer' category in the 'Best Corporate Report Awards' (BCRA) competition. A renowned doctor specializing in diabetic care gave a thorough and easy to understand talk on “Diabetes and its Complications”. These presentations were usually made by the Professor/Head of the department at the center/clinic. health. accountability and governance of the published annual reports of entries from South-Asian countries. blood glucose testing and HbA1c analysis were conducted. public awareness lectures were organized with a comprehensive presentation on 'Diabetes Prevention' and 'Better Management Techniques' in order to improve the quality of diabetic patients' lives. “Celebrating 10 Years of Performance”. The sanofi-aventis Pakistan report was adjudged the winner of the bronze award in the hospitality. Key facts and data on the prevalence of diabetes & brochures on diabetic care were disseminated.
a separate Business Unit for vaccines was created during the year. sanofi-aventis Pakistan limited. patient information material was also developed and delivered to doctors to help them understand and educate their patients about the difference between fake and original Plavix®. The cardiothrombosis team is responsible for promoting Plavix®. our gross margin. Profit after tax at Rs. In order to curb the menace of counterfeit of Plavix®. Marketing and Medical Activities The marketing team at sanofi-aventis Pakistan limited designed strategies and innovative marketing initiatives to drive sales growth and maximize the value of brands while operating within the medico-marketing ethical framework. a campaign titled "Celebrating 10 years of Performance" was launched to commemorate the 10th anniversary of Amaryl® launch.56% over the last year. 2008 a fire broke out at the electrical sub-station building situated at the Karachi manufacturing site of the Company. Despite the high inflation and other cost increases we managed to contain the total costs of distribution. These initiatives helped sanofi-aventis to maintain market leadership position in several therapeutic classes in a very competitive environment. The activities were focused on major therapeutic areas throughout the year including medico marketing activities. GPs were updated on management on diabetes and standard of care. water for life campaign and intravenous medication programs for health professionals. transportation costs. the no. 3. focused activities like round table discussions and local speaker programs were arranged covering indications like Sepsis. The latest ADA guidelines support the use of basal insulin in the early stage of diabetes helping patients reach their glycemic goals effectively and safely. . diagnostic facilities like rapid HbA1c testing and diabetes detection drives were also organized free of cost for the patients at various clinics.30 million) because of the reasons explained above. sanofi-aventis participates in different scientific and medical congresses and workshops related to diabetes. This event also provided the platform to launch SoloSTAR and SoloSTAR device registry in coordination with the Medical Department. Daonil®. Lantus® and Apidra®. . In 2008 approx. fuel and power cost as well as labour costs increased considerably which also impacted the gross margin and administration expenses of the company during the year under report. Key events for the year for Cardiothrombosis team included CMEs on Acute Coronary Syndrome (ACS) and participation in major cardiology conferences while clinical trials in acute coronary syndrome remained in progress. osteoporosis. as a percentage of net sales has reduced to just over 24% from nearly 28% last year. These results were shared with prominent Urologists of Pakistan. Lantus® plant visit in Germany was arranged for Key Opinion Leaders followed by lectures from experts around the world on the subject. 2. cardiovascular disease.Directors’ Report to the Shareholders 36 37 We are pleased to present the Annual Report and the Company's audited financial statements for the year ended December 31. Some of the key events for the year included Key Opinion Leader development and engagement of doctors through CMEs and participation in major diabetes conference and APDLS meeting which emphasized on building the concept of early insulinazation. sanofi-aventis S. Industry Leadership According to the last IMS market report sanofi-aventis is now ranked 4th in the pharmaceutical industry of Pakistan. Each brand team strived to introduce innovation to provide better management options of various diseases to clinicians. The campaign included Patient awareness and benefit programs at Diabetic clinics. increase in international prices of certain raw and packing materials. due to some legal and procedural requirements vaccines private market business could not be started by the Company during the year. Lantus team is promoting the use of insulins with long acting insulin analogue Lantus® and rapid acting insulin analogue Apidra® for diabetes patients of Pakistan. termination of royalty and technical fee agreement with our associated company. Radhakrishna Sothiratnam from Malaysia. 6000 patients were provided free early diagnostic facilities for detection of Typhoid and Urinary Tract Infections during the year. labour costs. This is mainly volume growth as we were granted price increases for “hardship cases” in the last week of November 2008. Typhoid and Urinary Tract Infections are common infections affecting a large segment of the population. diagnostic support for patients etc. The VTE guidelines in different specialities were also presented by Clexane® Key Opinion Leaders. All such requirements have now been taken care of and our vaccines business unit has started functioning with participation in some of the Government tenders. on 4 products only. DVT Advisory Board members and leading Key Opinion Leaders of Medicine. We also organized an international level CME program "Mission Diabetes" involving two leading international speakers namely Prof. Effective credit controls are in place and we were able to reduce debtors’ turnover ratio from 13 days to 12 days as compared to last year. positive outcome of which is expected to add value to the Company’s business activities in 2009. various events such as lectures by experts and Key Opinion Leaders. 1984. 2008. Around 7000 doctors participated. As a part of creating awareness about venous thromboembolism. Furthermore. due to use of rented generators until restoration of the sub-station. Xatral® was the most preferred alpha blocker in this study by Urologists. 2008 we are confident to establish the ease of use of administering Insulin and helping more patients reaching their diabetes goal and therefore expects increase in sales of Lantus®. the leader in anti Diabetic market. Moreover. Maintaining the tradition of facilitating academic activities. the borrowings of the Company have also increased significantly due to increase in investing activities as part of our expansion policy. 1984 and clause xix of the Code of Corporate Governance. This growth is a result of innovative marketing initiatives like local speaker programs. with a market share of 4. oncology and cardiovascular diseases etc. mainly due to increased borrowing cost on account of monetary measures taken by the State Bank of Pakistan to control the rising inflation. marketing and administrative expenses at more or less the same level as last year by taking several cost cutting measures.especially in fuel and energy. Urology.27 million was significantly lower than last year (2007: Rs. Whilst sales recorded a healthy growth rate. The interim results of the study showed that treatment with a α1. Finance cost increased by 34% over last year. 89% of our sales were on cash before delivery basis to 16 regional distributors. an ENDORSE seminar was arranged at the company Head Office in Karachi inviting 90 key doctors including ENDORSE investigators. seminars and symposia etc were organized during the year. Neodipar®. In order to educate doctors on drug quality. reduction in headcount. with the freeze on selling prices since December. regardless of the duration of catheterization. etc. oncology and Deep Vein Thrombosis etc. 2008 at Rs.A.347 million registered a growth of 11.1 brand of sanofi-aventis Pakistan limited. As mentioned last year. Clexane® and Cordarone®. These financial statements have been prepared in accordance with the approved accounting standards as applicable in Pakistan and the requirements of the Companies Ordinance. Overview We are pleased to inform that net sales for the year ended December 31. Flagyl®. This erosion in margins is mainly due to Pak Rupee depreciation. Anoop Misra from India and Dr. soaring inflation . However. offers a complete range of anti diabetics which include Amaryl®. The remaining 11% sales were made on credit to large hospitals and institutions. round table discussions.38. is moving rapidly towards the Billion landmark with double digit positive growth. The Directors' report is prepared under section 236 of the Companies Ordinance. however.5%. General Practioners (GP) play a key role in the management of diabetes and are a primary contact point for the patient. Xatral® indicated for the management of Benign Prostate Hyperplasia (BPH) is a growing brand of sanofi-aventis Pakistan limited. which included. With the introduction of Lantus® SoloSTAR® in December. etc. Further. The company also actively participated in a World Diabetes Day organized by various institutions across Pakistan. Keeping in view the importance of paediatric segment. reduction in travel entitlements.75. scientific product presentations. The improved sales performance was mainly due to the restructuring of the sales and marketing organization in early 2008. infectious disease. to provide appropriate focus and increased coverage on all our products. Claforan and Haemaccael plant visits were arranged for the doctors to demonstrate quality of sanofi-aventis products. infectious diseases. To assess the current practice of Urologists in the management of Acute Urinary Retention (AUR) a study was conducted globally including Pakistan by the name RETENWORLD. Continuing Medical Education opportunities were extended to clinicians in different therapeutic areas like diabetes. 2001 continuing on the remaining products. In order to promote and highlight sanofi-aventis state of the art manufacturing facility and processes.4. pneumonia and bacterial meningitis. On August 18. especially on products with high turnover. strategic products and new brands. is one of the world’s leading pharmaceutical companies and is ranked number one in Europe.blocker before a TWOC consistently improves the chances of successful catheter removal. Educational materials were also developed for the benefit of diabetic patients. Through clinicians. ICU and Anesthesiology. Orthopedics. Surgery. Immediately following this event. the Company launched its disaster recovery plan due to which there was only marginal operational impact of this incident.areas where major burden of disease lies in Pakistan. 1. Gynecology. thus enabling them to enrich and update their medical practice.
Related Party Transactions All related party transactions. The profit. However. Finance & Taxation As already mentioned earlier. LANTUS® SoloSTAR® (insulin glargine) . Due to increasing environmental pollution and poverty the incidence of respiratory tract disorders is on the rise. diabetes and cancer. which is progressing as per plan and the commercial production is expected to start in the second quarter of the year 2010. finance cost and capital expenditure etc has resulted in a significant increase of the running finance utilized under mark-up arrangements at the end of the year under report. frozen selling prices and soaring inflation resulting in an across the board cost increase including depreciation due to significant capital expenditure. were approved by the Board and these are in line with the transfer pricing policy with related parties approved by the Board previously.096 38. Solostar study was also initiated to coincide with the launch of the new insulin delivery devise Lantus® SoloSTAR®. as well as in equipment for improvement of GMP/EHS and security. This includes two large scale studies recruiting over 1000 patients namely the SAVE study for Deep Vein Thrombosis (DVT) and PONDs study for Diabetes. a member of the medical team attended a six weeks course in medical ethics conducted by the Aga Khan University in collaboration with the Johns Hopkins University.1. profitability was lower than last year mainly on account of Pak Rupee depreciation. The company maintains a full record of all such transactions. 7.503) 22.as restated Actuarial loss recognized directly in equity . Up-gradation of skills is an ongoing process at sanofi-aventis. as compared to the end of the previous year. presentations were made to leading oncologists highlighting the features and quality of Taxotere®. acid reflux and Gastro duodenal ulcers incidence are on the rise. increased borrowings rates and lower profitability as compared with prior years. consequent impact on profitability for the year. These clinical research projects.365 47.40 per share of Rs. To summarize our various initiatives. Financial Statements The financial statements of the Company have been audited and approved without qualification by the auditors of the Company. With sparse library facilities available in the country. This year too. access to cutting edge articles to the medical profession and post-graduate students is limited. In addition to the manufacturing facilities. supporting the Lantus® & Apidra® leadership position in the diabetes market. Accordingly work on a new liquid manufacturing facility at the Karachi site was initiated.602) 46. the Company has initiated a project for divestment of its Wah site. during 2008. Capital expenditure of Rs. USA. Over 5000 patients were recruited to 13 studies across Pakistan involving approximately 150 investigators during the year.8 million) was incurred during the year on expansion.868 A good return & payout to shareholders is one of the primary objectives of your Company. some of which are ongoing. 2008 Unappropriated profit carried forward (13. alongwith the terms and conditions. deep vein thrombosis. 8. 4. 5. facility improvement and rationalization. Lantus® SoloSTAR® and Apidra® SoloSTAR® is the best combination of insulin and the easy to use pen that is easier to inject.270) (628) 36.269 (1.8 million (2007: Rs.10 each. We will establish SoloSTAR® as the preferred pen. Health care professionals rate this as one of the best services in the industry.launched in July 2008: Rhinathiol® (Carbocystein) is for treatment of acute Bronchitis. Other capital investments were also made including expansion of the Haemaccel plant and upgrading of the IQC laboratory etc which are expected to start commercial production in first quarter of 2009. in '000' ) 84. sanofi-aventis through its global network has real-time access to over 1000 peer-reviewed indexed journals which facilitate the academia in their research and keeping abreast with the latest innovations in the medical field. were in the areas of diabetes. The medical director also attended a two week leadership training program conducted by the University of Chicago Graduate School of Business at Singapore campus. Six SOPs were developed by the medical department that will help minimize patient related and business risks. Accordingly.534. breast cancer and psychiatric disorders. for approval by the shareholders. This is evident from the fact that 4. . Two national seminars were held to disseminate findings from the ENDORSE study on DVT published in the LANCET and the World Reten study on Benign Prostate Hypertrophy published in the British Journal of Urology. Chartered Accountants. 6.414 1. During 2008.186. were added to our product portfolio in 2008: Xerosec® (Omeprazole) . patients and brands respectively through well-planned initiatives to ensure a meaningful contribution to society from a medicomarketing perspective. higher level of our borrowings due to capital commitments and Pak Rupee depreciation. increase in stocks. acute urinary retention. Profit. the original research molecule docetaxel. sanofi-aventis is determined to improving standards of health care in Pakistan.371 Profit for the year before taxation Taxation : Current . Rhinathiol® (Carbocystein) . we also invested in technology and infrastructure upgrading.net off deferred taxation Profit available for appropriations Appropriations : Proposed final dividend @14% out of profits for the year ended Dec 31. taxation and proposed appropriations are stated below: ( Rs. diagnostic and promotional support to our clinicians. the Directors are pleased to recommend a dividend of Rs. the Medical Department undertook 13 clinical studies to address various questions of the medical community.launched in December 2008: To help all patients with T1 and T2 diabetes achieve their treatment targets. including line extensions. we were able to provide educational. Lantus® SoloSTAR® is now launched in Pakistan and Apidra® SoloSTAR® is to be launched in 2009. Due to dietary habits and life styles in Pakistan. The following new products. Cashflow Pak Rupee depreciation. taking into account economic recession. Further. Investigators presented local data to Key Opinion Leaders in the respective fields. Capital Expenditure Expansion of production facilities and modernization of plant and machinery remains a high priority of the Company. As part of its facility improvement & rationalization program. participation in various conferences was also made to promote the generic products of the Company.500 medical related queries were received from the medical profession. some other current assets.for the year Prior Period Deferred Total Profit after taxation Unappropriated loss brought forward . Ford Rhodes Sidat Hyder & Co.284 (2. The department also focused on disseminating findings of the most current published medical literature related to disease areas and new treatment modalities particularly in the fields of hypertension. cardiology.launched in January 2008: Xerosec® (Omeprazole) is a later generation specific inhibitor of the gastric proton pump in the parietal cells indicated for the treatment of Acid Peptic Disease. The remarkable efficacy coupled with a good safety profile makes both Taxotere® and Eloxatine® the agent of choice in the treatment of cancer at every stage of the disease.Directors’ Report to the Shareholders 38 39 The Oncology Franchise which offers Taxotere® and Eloxatine® regularly arranges various programs to enable oncologists to discuss the most recent research findings in cancer treatment. Comprehensive training sessions for field force were organized at the launch of Xerosec® and Rhinathiol®. Concern for safety is a corner stone at sanofi-aventis.
“Women's Day” was celebrated and a program was organized for all female employees which included presentation on Breast Cancer by an Oncologist. education. these include: • dashboard application to enable sales personnel to review and monitor their sales performance and indicators. performance. incentives. In addition to free diabetes screening. During the year our human resources department was involved in a number of projects. inter-alia. In 2008.sessions on Communication skills for employees of Head Office / Sales. This is part of an on-going effort to spread awareness about breast cancer. . Developing 'National Guidelines on Rabies Management' in collaboration with the President of the Pakistan chapter of the Rabies in Asia Foundation. . IT spending during the year 2008 amounted to over Rs.blood donation drive in association with the Patients' Welfare Association (PWA).'My Child Matters'. .participation in a job fair at Expo Centre to create awareness about sanofi-aventis. Training and development plans are integral part of performance review process and includes specific training events to develop new skills. These awards reflect our unrelenting emphasis on accountability through transparency. Accordingly. included: . public awareness lectures were organized with a comprehensive presentation on 'Diabetes Prevention' and 'Better Management Techniques' in order to improve the quality of diabetic patients' lives.com. . . Well over 80 employees registered to donate blood. . .simplification of the appraisal process with a more user friendly format for field force performance appraisal. “Celebrating 10 Years of Performance”.workflow projects to improve productivity and create a paperless environment.Orientation Program for new employees (both at head office & industrial site). Website All our stakeholders and general public can log on to the sanofi-aventis Pakistan limited website at www. . the joint committee of the Institute of Chartered Accountants of Pakistan and the Institute of Cost & Management Accountants of Pakistan selected the annual report of your company for the year 2007 as the fifth best report in the “Chemical & Fertilizer Sector”.sanofi-aventis. the Company's CSR program has a very wide scope encompassing initiatives in the areas of heath care. meeting timeliness and completeness of information. The campaign included a series of programs.donations to various institutions.organized an Earthquake Relief Drive to support victims of the earthquake which claimed over 300 lives and displaced thousands in Balochistan.connectivity of all sales offices to head office via secure VPN. • new reports for district managers to keep them updated with weekly sales summary customized for their team . . 12.sponsored a Breast Cancer Awareness ad campaign with Shaukat Khanum Memorial Hospital during Breast Cancer Awareness month. a leading social welfare organization working in the affected region.in a joint venture with Nestle® Pure Life™ to spread awareness about health and hygiene.279 million to the government and its agencies on account of various government levies including custom duty and income tax. Corporate Social Responsibility The Company operates in a socially responsible manner and is committed to the highest standards of corporate behaviour.Amaryl patient awareness campaign entitled. . child welfare. . a UICC (International Union against Cancer) / sanofi-aventis partnership to improve the access to treatment care and support for children with cancer in low and middle income countries was also extended to Pakistan in 2008. a WHO recognized organization providing blood to poor patients free of cost.“Leadership Quest” training for all Sales and Business Managers. Every year. Patient awareness literature was also distributed during these presentations. This also involves enhancement of internal controls over information processing.sessions on “Leadership Essentials” to roll out the District Manager Competencies. Health. 13. . we continue to invest more and more in IT and upgrade of related infrastructure. .Promoting Diversity . These enhancements will increase retention of organizational data and facilitate efficient centralized storage for the entire organization. 10.investments in computers for District Managers in Sales department to enhance their productivity. excellent governance framework and dedication to best practices. Business Solutions: . • electronic expense system that automatically calculates sales re-imbursements based on system generated travel plans and call history. such as electronic approvals (eAED) .conducted for field staff. primarily supporting health and education in the country. We also won a bronze medal for the best presented accounts for the year 2007 in the Hospitality. 11. a.enhancement of eTMS system that manages sales force monitoring. As of December 31.upgraded all sales offices to DSL high speed connectivity. thereby continuously enhancing qualitative aspects of management reporting. 2008. sanofi-aventis sends a non-management staff member to perform Hajj. Awards for Best Practices and Corporate Reporting This year your Company has won national and international awards for the best presented corporate reporting for the year 2007. which. Pakistan. Transport & Shipping Category from the “South Asian Federation of Accountants”. Contribution to National Exchequer During the year the company paid over Rs. The management's relations with the Collective Bargaining Agent (CBA) remained cordial and industrial peace prevailed throughout the year. which were run across the country in major public and private diabetic centers/clinics. primary and secondary sales consolidation.Directors’ Report to the Shareholders 40 41 9.collaborated with the Rabies in Asia Foundation to raise awareness about rabies prevention on World Rabies Day.8 million and following are some of the highlights relating to IT activities: Infrastructure: . infrastructure development and other social welfare activities. ethics and values. These presentations were usually made by the Professor/Head of the department at the center/clinic.“Sales Certification” course . .pk b. when water-borne diseases are on the rise. . Flagyl® provided 200 clinics with Nestle hot and cold water dispensers during the summer. The collection was presented to 'Dawn Relief'. two employees were sent for the pilgrimage as the person sponsored in 2007 was not able to go. total numbers of permanent employees stood at 789 (2007: 846).investments in new servers and Centralized Storage (SAN). water and sanitation. . environment protection.the sacred trip to Makkah often uses up a Muslim's entire life's savings. Following is a snapshot of the Company's CSR initiatives during the year: . . In July 2008. We expect Pakistan shall be able to secure grant(s) for the humanitarian project(s) in 2009. Human Resource The principle of equal opportunity is central to our HR policies and we are committed to equipping all employees for their job roles and support them to realize their full potential. Information Technology As part of our group strategies. . 14.
The process of review will continue and any weakness in controls will be removed. cash-flows and changes in equity. France. Compliance with the Code of Corporate Governance The Stock Exchanges have included in their listing rules the Code of Corporate Governance (Code) issued by the Securities & Exchange Commission of Pakistan. Z. contractor safety and other key safety elements. France and the ultimate parent of the Group is sanofi-aventis S. and . All employees are informed of this Statement and are required to observe these rules of conduct in relation to customers.Mohammad Amjad (Alternate for Carmelo D'Ancona / Jean. Dr. There are no significant doubts upon the Company’s ability to continue as a going concern. The value of investments of provident. Proper books of accounts of the Company have been maintained. Germany and Plasma Investments (U. Audit Committee There was no change in the composition of audit committee during the year.Mark Georges) .Directors’ Report to the Shareholders 42 43 15.479. 21. Eric Le-Bris) . Statement of Ethics and Business Practices The Board has adopted the Statement of Ethics and Business Practices. Holding Company The Company is a subsidiary of SECIPE.Dr.469 and 1. 3. gratuity and pension funds based on their accounts as on December 31. Health & Safety The Company recognizes safety as the key component of operational excellence and gives utmost importance to training of employees and contractors to enhance safety awareness and actively incorporate industry best practices in the overall operating setup. if any. Amanullah Khan Mr. Key operating and financial data for the last 6 years is shown on page 84. A confirmation that these rules have been followed is obtained from all employees every year. 5. Our commitment to Environment.) Limited respectively as part of global restructuring program. have been duly disclosed in the financial statements. International Accounting Standards. audit committee is composed of the following 2 non-executive directors and one alternate Director: 1. Mr. During the year SECIPE acquired 3. 22. 9.Infra Red Thermography conducted for workers. Directors There was no change in the Board of Directors after the election of Directors in the last AGM.7. In compliance with the requirements of the Code for Corporate Governance. Chartered Accountants.000 ordinary shares from its associated undertakings viz. of Meetings Attended 4 4 1 3 1 none none none 4 1 3 3 3 . Auditors The Audit Committee and Directors recommend retention of the retiring Auditors’ Messrs Ford Rhodes Sidat Hyder and Co. Hoechst GmbH. the Company has reassessed the useful lives of the EDP equipments included within factory and office equipment and decided to write off the cost of all EDP equipments with the exception of computer servers over 4 years instead of 3 years to reflect more accurately the relationship between the effective useful life of the assets and depreciation charge. 2009. Pattern of Shareholding A statement of the pattern of shareholding is shown on page 81. Secretary Chairman • • • • • • 24. 8. Appropriate accounting policies have been consistently applied in preparation of financial statements except for change arising from amendments of applicable accounting standards or interpretations and accounting estimates are based on reasonable and prudent judgment. There has been no material departure from the best practices of Corporate Governance as detailed in the listing regulations.752 Rs.K. Environment. The system of internal control which is in place.A. .214. Attendance by each Director was as follows : Name of Director Messrs : 1.Shakeel Mapara (Alternate for Mr.513. 4. the result of its operations. Syed Hyder Ali 2. 19. 23. Yasir Pirmuhammad (Head of Internal Audit) 20.L.628 The outstanding duties. Syed Babar Ali Tariq Wajid Pir Ali Gohar Syed Hyder Ali Tariq Iqbal Khan Jean Louis Grunwald Eric Le-Bris Jean-Marc Georges M..addition of sugar and cholesterol testing facility in our medical centre. 6. Moin Mohajir .office safety inspection conducted for head office employees with company doctor as auditor. 17.training of 300 employees on first aid. . suppliers and regulations.emergency drill conducted for industrial affairs and head office employees.Grunwald) No. Corporate and Financial Reporting Framework • • • The financial statements prepared by the management of the Company present fairly it’s state of affairs. 16. Following are some of the key activities undertaken during the year with an objective to attain highest safety standards: .041. During the year. 2. 2008 (audit in progress) was as follows : Provident Fund Gratuity Fund Pension Fund • • Rs. Eric Le-Bris 3. is being continuously reviewed by internal audit. Amanullah Khan (Alternate for Mr J. learning experiences.374 Rs. fire fighting.620. Health & Safety is manifested in all our activities as no major accident was reported in 2008. statutory charges and taxes. have been followed in preparation of financial statements and any departure therefrom has been adequately disclosed.Arshad Ali Gohar (Alternate for Mr Pir Ali Gohar) . 7. The Company has adopted the Code and is implementing the same in letter and spirit.97 (2007: Rs..3.924. During the last business year four meetings of the Board of Directors were held. . Mr. Earnings Per Share Earnings per share after tax was Rs. for the year ending on December 31. 18. as applicable in Pakistan.169.246.81).
Thus. At present the Board includes 7 non-executive Directors. The meetings of the Board were presided over by the Chairman and. Statement of Compliance with the Code of Corporate Governance for the year ended December 31.8 million were expanded during the year under report. in his absence. notwithstanding the events described above and expect good growth potential for the pharmaceutical industry in Pakistan. Most of the expenditure relates to expansion. 2) 3) 4) 5) 6) 7) b) Capital Expenditure As mentioned last year. . and thank all the employees whose efforts played a major role in the results achieved in 2008. for over 20 years. during the year 2009 which we believe shall also contribute to our top line. The Company has prepared a “Statement of Ethics and Business Practices”. for the purpose of establishing a framework of good governance. and upgrading of our production facilities. who has been given special relaxation by SECP in this matter. the vaccines’ registrations were transferred to sanofi-aventis Pakistan limited and a separate Business Unit was formed together with plans to initiate various programs including vaccine awareness. balancing. Company Secretary. modernization. DFI or an NBFI or. For incoming Directors the orientation course will be arranged in due course. vaccine-economics. A complete record of particulars of the significant policies along with the dates on which they were approved or amended has been maintained. We are exceedingly grateful to our employees as good results are first and foremost due to people. showing group’s commitment not only in the pharmacy field but also in the generic field.Directors’ Report to the Shareholders 44 Leave of absence was granted to Directors who could not attend the Board Meetings and they were represented by their respective alternates. The Board has developed a vision / mission statement. including appointment and determination of remuneration and terms and conditions of employment of the CEO and other executive Directors.1 billion starting from 2008. except for one director. 15) The Board has formed an audit committee. Written notices of the Board meetings. Casual vacancies occurring in the Board during the year were duly filed up by the Directors within 30 days thereof. The minutes of the meetings were appropriately recorded and circulated. these expectations are subject to future events and are subject to change. Company Secretary and Head of Internal Audit during the year. along with the agenda and working papers. out of which 4 directors represent minority shareholders. However. • • 25.New Products and Line Extensions in Pharmaceuticals Business: During the year 2008. being a member of a stock exchange. were circulated atleast seven days before the meetings. which has been signed by all the directors and employees of the Company. 8) c) Sales & Profitability We believe your company has the potential to maintain sales growth in the year 2009. whereby a listed company is managed in compliance with the best practices of corporate governance. We also plan to launch few more new products. 37. The terms of reference of the committee has been formed and advised to the committee for compliance. 26. Lahore Stock Exchange (Guarantee) Limited and Islamabad Stock Exchange (Guarantee) Limited respectively.534. All the powers of Board have been duly exercised and decisions on material transactions. Future Outlook New line of business. and is profoundly thankful for the trust and confidence reposed in the Board by the shareholders. sanofi-aventis group has launched acquisition projects concerning a couple of leading generic companies in a move to accelerate sales growth and further extend its pharmaceutical portfolio in emerging markets. It comprises of three members. CFO. have been taken by the Board. 14) The Company has complied with all the corporate and financial reporting requirements of the Code. we had a planned capital expenditure of over Rs. continued cost controls. In March. Executives and their spouses & minor children. CEO and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding. Statement of Ethics and Business Practices has been approved by the Board and signed by all Directors and employees of the Company as per the requirement in the Code of Corporate Governance. The Company has applied the principles contained in the Code in the following manner: 1) The Company encourages representation of independent non-executive directors and directors representing minority interest on its Board of Directors. 2008 45 This statement is being presented to comply with the Code of Corporate Governance contained in Regulation No. The directors have confirmed that none of them is serving as a Director in more than ten listed companies including this Company. The continuously high level of capital expenditure every year demonstrates a vote of confidence of the main shareholders of the company to the country and its economic management. All the Directors on the Board are fully conversant with their duties and responsibilities. stability of the Pak Rupee and control of inflationary trend in the country. By order of the Board Syed Babar Ali Chairman Karachi: 13th February. 16) The meetings of the audit committee were held once in every quarter prior to approval of interim and final results of the Company and as required by the Code. All the resident Directors of the Company are registered as tax payers and none of them has defaulted in payment of any loan to a banking company. 11) The Directors Report for this year has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed. including line extensions to our existing portfolio of products and generics. a) No trade in the shares of the Company was carried out by the Directors. two of whom are non-executive directors including the chairman of the Audit Committee. growth in profitability will be largely dependent on. A synergy is being developed between sanofi-aventis and sanofi pasteur products through joint planning and implementation. These initiatives will help build the concept of vaccines for all age groups and eventually make the sanofi pasteur brand synonymous with vaccines in Pakistan. product launches and line extensions in 2009 . out of which Rs. by the Director elected by the Board for this purpose and the Board met atleast once in every quarter.Vaccine Business integration: As mentioned earlier. CEO. . 43 and 36 of listing regulations of the Karachi Stock Exchange (Guarantee) Limited. and educational activities. 12) The financial statements of the Company were duly endorsed by CEO and CFO before approval of the Board. has been declared as a defaulter by that stock exchange. overall corporate strategy and significant policies of the Company. 13) The Directors. 2009 Tariq Wajid Chief Executive 17) The Board has set-up an effective internal audit function. General The Board looks forward to the forthcoming Annual General Meeting of the shareholders to discuss Company performance in 2008. 9) 10) There were no new appointments of CFO. Although the sales volume growth is expected to contribute positively to the bottom line. sanofi pasteur vaccines have been marketed in Pakistan through a distributor and your Company is ranked number 4th in the vaccine business although globally sanofi pasteur is the largest in vaccine business and serves nearly a quarter of the global market providing protection from 20 infectious diseases.
nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Company’s compliance. 20) We confirm that all other material principles contained in the code have been complied with. whether the Statement of Compliance reflects the status of the Company’s compliance with the provisions of the Code of Corporate Governance and report if it does not. Lahore and Islamabad Stock Exchanges. 37. with the best practices contained in the Code of Corporate Governance as applicable to the Company for the year ended 31 December 2008. 2008 46 18) The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the quality control review programme of the Institute of Chartered Accountants of Pakistan. to the extent where such compliance can be objectively verified. A review is limited primarily to inquiries of the Company personnel and review of various documents prepared by the Company to comply with the Code. Our responsibility is to review. in all material respects. their spouses and minor children do not hold shares of the Company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountants of Pakistan. where the Company is listed. We have not carried out any special review of the internal control system to enable us to express an opinion as to whether the Board’s statement on internal control covers all controls and the effectiveness of such internal controls. Chartered Accountants Karachi: 13th February. Based on our review. respectively.Statement of Compliance with the Code of Corporate Governance for the year ended December 31. 2009 A member firm of Ernst & Young Global Limited . As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. 2009 Ford Rhodes Sidat Hyder & Co. By order of the Board Review Report to the Members on Statement of Compliance with Best Practices of Code of Corporate Governance 47 We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance prepared by the Board of Directors of sanofi-aventis Pakistan limited to comply with the Listing Regulation No. The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Company. 19) The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. Syed Babar Ali Chairman Tariq Wajid Chief Executive Karachi: 13th February. that they or any of the partners of the firm. 43 and 36 of Karachi.
136 212.769.249 729 6.676 1. its cash flows and changes in equity for the year then ended.188 40.596 688. cash flow statement and statement of changes in equity together with the notes forming part thereof for the year then ended and we state that we have obtained all the information and explanations which.428. 2009 21 2.842 CONTINGENCIES AND COMMITMENTS TOTAL EQUITY AND LIABILITIES The annexed notes 1 to 39 form an integral part of these financial statements. in our opinion and to the best of our information and according to the explanations given to us.384 8.944 3.984. 1980 (XVIII of 1980).102 1. in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at 31 December 2008 and of the profit.527 542. and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance.114. investments made and the expenditure incurred during the year were in accordance with the objects of the Company.164 1. as stated in note 3. 4 5 6 7 1. evidence supporting the amounts and disclosures in the above said statements. plant and equipment Intangible asset Long-term loans Long-term deposits CURRENT ASSETS Stores and spares Stock-in-trade Trade debts Short term loans and advances Trade deposits and short-term prepayments Other receivables Taxation .147 96.124 73.195. profit and loss account.984. Zakat deductible at source under the Zakat and Ushr Ordinance.820 8. 1984.278 1. give the information required by the Companies Ordinance.116.802 2. 1984.912 1.676 2. and.612 70.240. cash flow statement and statement of changes in equity together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan.789 100.871 2. was deducted by the Company and deposited in the Central Zakat Fund established under Section 7 of that Ordinance.020. the expenditure incurred during the year was for the purpose of the Company's business.325 790. 1984.585 135. and the business conducted.428.361 3. 2008 2007 -------------Rupees in '000------------(Restated) Note ASSETS NON-CURRENT ASSETS Fixed assets Property.252 269. It is the responsibility of the Company's management to establish and maintain a system of internal control. and are in agreement with the books of account and are further in accordance with accounting policies consistently applied except for the change. 2008 49 December 31.951 24. 2009 Tariq Wajid Chief Executive .355 42.077. Chartered Accountants Karachi: 13th February.053 NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE TOTAL ASSETS EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Share Capital Reserves NON-CURRENT LIABILITY Deferred taxation CURRENT LIABILITIES Trade and other payables Accrued mark-up on short term borrowing Short-term borrowing 15 (ii) (iii) (c) 16 17 96.086 872. as well as. after due verification.512 1.448 1. and in our opinion. with which we concur. proper books of account have been kept by the Company as required by the Companies Ordinance.Auditors’ Report to the Members 48 Balance Sheet as at December 31. were necessary for the purposes of our audit. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. We conducted our audit in accordance with the auditing standards as applicable in Pakistan.797. An audit includes examining.087 18 19 20 (d) 892.920 24.130 10.185 1.624 1. in our opinion: the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance. Our responsibility is to express an opinion on these statements based on our audit. the balance sheet.021 137.887 2.944 151. Ford Rhodes Sidat Hyder & Co.017.448 1.053 A member firm of Ernst & Young Global Limited Syed Babar Ali Chairman Karachi: 13th February.104. evaluating the overall presentation of the above said statements. December 31.623. on a test basis.186 1.425 8 9 10 11 12 13 14 40.355 2.543 26. to the best of our knowledge and belief. An audit also includes assessing the accounting policies and significant estimates made by management.payment less provision Cash at banks We have audited the annexed balance sheet of SANOFI-AVENTIS PAKISTAN LIMITED as at 31 December 2008 and the related profit and loss account. 1984.998 32. We believe that our audit provides a reasonable basis for our opinion and. we report that: (a) (b) (i) in our opinion.
583 100 198.874) OPERATING PROFIT Finance costs PROFIT BEFORE TAXATION Taxation NET PROFIT FOR THE YEAR 27 26 171.309) (2.781) 21.290.135) (122.501) (540. per share) 28 3.537) (132.847) 180. 2008 2007 -------------Rupees in '000------------(Restated) 366.365 (46.393 209. December 31.705) 1.947 1.346.083) BASIC EARNINGS PER SHARE (Rs. 2008 51 December 31.891 (40.896.060 375 (486. 2009 Tariq Wajid Chief Executive Syed Babar Ali Chairman Karachi: 13th February.326) (62.070 Note Note CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations Finance costs paid Income tax paid Retirement benefits paid Long-term loans and advances (net) Long-term deposits (net) Net cash generated from operating activities CASH FLOW FROM INVESTING ACTIVITIES Capital expenditure Sale proceeds from disposals of operating fixed assets Interest received Net cash used in investing activities CASH FLOW FROM FINANCING ACTIVITIES Repayment of long-term finances Repayment of short-term loans Dividends paid Net cash used in financing activities NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 29 NET SALES Cost of sales GROSS PROFIT Distribution and marketing expenses Administrative expenses Other operating expenses Other operating income 22 23 4.271) (330.070 (47.877 (65.403) (63.243) (540.542) 1.800) 48.528 (3.500) (100.000) (68.613) 2.003 (183. Syed Babar Ali Chairman Karachi: 13th February.824) 1.365) (186.582) (155.725 (756.616) 3.823 3.301) (105. 2008 50 December 31.81 CASH AND CASH EQUIVALENTS AT END OF THE YEAR The annexed notes 1 to 39 form an integral part of these financial statements.269 (42.267 (2.084.083) 30 (870. 2008 2007 -------------Rupees in '000------------(Restated) Cash Flow Statement for the year ended December 31.271) (42.97 7.565 (103) 30.638 (903.Profit and Loss Account for the year ended December 31. The annexed notes 1 to 39 form an integral part of these financial statements. December 31. 2009 Tariq Wajid Chief Executive .554) (105.302 23 23 24 25 (757.878 (64.278) (230.392) 52.809 (884.627) (57.987) 115.096) 38.778) (384.478 (87.811.113) 84.589) 75.055.345) (534.
2008 96. Syed Babar Ali Chairman Karachi: 13th February. 1984 shall prevail.935 18. Sector 22.116.448 96.000 18.302 (68.448 5.3] Deferred tax on actuarial loss recognised Net profit for the year ended December 31. 2008 Employee benefit cost under IFRS 2 “Share-based Payment”.114.[note 3] Balance as at January 01.000 835.000 935.378 13. based on the history of the transactions. 1984.935 18.194 (68.000) 141. 2006 Transfer to general reserve Balance as at December 31.269 7. (iii) Taxation The Company takes into account the current income tax laws and decisions taken by appellate authorities while recognising provision for income tax. 2007 as restated Actuarial gains / (losses) taken directly to equity [note 13.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Statement of Compliance These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. The amounts are not provided for matters. THE COMPANY AND ITS OPERATIONS The Company was incorporated in Pakistan in 1967 under the Companies Act. Management believes that the changes in the outcome of estimates will not have significant effect on the financial statements. Revenue Reserves Long term liabilities forgone Other (note 3) General reserve Unappropriated profit Total --------------------------------------------------Rupees in '000-------------------------------------------------Balance as at January 01. 2007 Transfer to general reserve Balance as at December 31. (iv) Share based compensation plans The Company has share-based transactions involving group companies shares accounted for using various assumptions as disclosed in note 17.448 5.167 (966) 338 38. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance.3] Deferred tax on actuarial gain recognised Net profit for the year ended December 31.842 6.771) 75.116.478) (150.371 1.538 (6.[note 3] Final dividend for the year ended December 31.538 310. which are determined through actuarial valuations using various assumptions as disclosed in note 13. It also requires management to exercise its judgement in the process of applying the Company's accounting policies.141 13. Management believes that the changes in assumptions will not have significant effect on the financial statements. 23. Management believes that the changes in assumptions will not have significant effect on the financial statements.320 685.3 below.842) 303. where the Company's view differs from the view taken by the income tax department at the assessment stage and where the Company considers that the matters in appeals will be decided in favour of the Company.935 5.220 1. as a public limited company. provisions of and directives issued under the Companies Ordinance. 2008 53 1.284 24.538 100.448 96. 2009 Tariq Wajid Chief Executive . 2007 as restated Actuarial gains / (losses) taken directly to equity [note 13.935 5. 2007 as previously reported Effect of change in accounting policy on account of recognition of Employees Benefit Cost under IFRS-2 “Share-based Payment” and IFRIC-11 “Group and Treasury Share Transactions”.000 6.437) 1.736 (32.302 10. (ii) Post retirement benefits The Company has post retirement benefit obligations. such differences will impact the income tax provision in the period in which such determination is made.194 17. It is engaged in the manufacturing and selling of pharmaceutical products. Karachi. The matters involving a higher degree of judgement or complexity. Korangi Industrial Area.000 18. 2007 as restated Employee benefit cost under IFRS 2 “Share-based Payment”. 1984. In case requirements differ. 2.124 (966) 338 38. Lahore and Islamabad Stock Exchanges. The registered office of the Company is located at Plot No. Management believes that if the final outcome of the cases differs from the management's assessment.Statement of Changes in Equity for the year ended December 31.284 (42.000) 36.612 The annexed notes 1 to 39 form an integral part of these financial statements.2 Significant accounting judgements and estimates The preparation of financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates.141 96. 2.000 - 685. for making provisions for the doubtful debts whereas provision for stocks is based on the current market conditions.842 10.036 7.771) 75.736 (32. 2008 52 Capital Reserves Issued. VII of 1913.[note 3] Final dividend for the year ended December 31. The shares of the Company are listed on Karachi. subscribed and paid-up share capital Difference of share capital under scheme of arrangement for amalgamation Notes to the Financial Statements for the year ended December 31. disclosed in note 21.478) 1. or areas where assumptions and estimates are significant to the financial statements are as follows: (i) Provision for doubtful debts and stocks The Company has used judgements.269 (42.1(c) below.116.538 150.1 below. the provisions or directives of the Companies Ordinance.437) (100. 2.
It consists of expenditure incurred and advances made in respect of tangible fixed assets in the course of their construction and installation.Operating Segments IFRIC 12 .Business Combinations IFRS 8 . The assets’ residual values. The effect of any adjustment to residual values.7 Long term loans and deposits Long term loans and deposits are stated at cost. Provision is made for slow moving and expired stock where necessary. useful lives and methods are reviewed. There have been no critical judgements made by the Company's management in applying the accounting policies that would have the most significant effect on the amounts recognised in the financial statements.Borrowings Costs. 2009 July 01. Cost signifies standard costs adjusted by variances.Borrowings Costs (Revised) IAS 27 . Cost in relation to work-in-process and finished goods represent direct cost of materials. Cost represents the cost incurred to acquire the software licences and bring them to use. Subsequent costs are not recognised as assets unless it is probable that future economic benefits associated with these costs will flow to the Company and the cost can be measured reliably. direct wages and appropriate manufacturing overheads. The useful lives of intangible assets are reviewed at each reporting date.9 Stock-in-trade These are valued at lower of cost and net realisable value. 2009 January 01. if not insignificant. interpretations and amendments to published approved accounting standards that are not yet effective The following revised standards and interpretations with respect to approved accounting standards as applicable in Pakistan would be effective from the dates mentioned below against the respective standard or interpretations.Notes to the Financial Statements for the year ended December 31. 2009 January 01. plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The option of immediately expensing those borrowing costs will be withdrawn.3 Standards. 2008 2. and adjusted if appropriate.5 (i) Property. Value of items are reviewed at each balance sheet date to record provision for any slow moving items. 2009 January 01. 2. Standard or Interpretation Effective date (accounting periods beginning on or after) (ii) IAS 1 .6 Intangible asset – computer software Computer software licences acquired by the Company are stated at cost less amortisation. The Company expects that the adoption of the above standards and interpretations will have no material impact on the Company's financial statements in the period of initial application except for IAS 23 . Additional depreciation at the rate of fifty percent of the normal rate is charged on such machinery which is operated on double shift during the year. including expectations of future event that are believed to be reasonable under the circumstances. The cost of computer software is amortised over the estimated useful life as disclosed in note 5 to the financial statements.4 Basis of measurement These financial statements have been prepared under the historical cost convention except as disclosed in the accounting policies herein below. Any gain or loss arising on derecognition of the asset is included in the profit and loss account in the year the asset is derecognised. Net realisable value signifies the estimated selling price in the ordinary course of business less estimated costs necessarily to be incurred to make the sale. plant and equipment Operating fixed assets These are stated at cost less accumulated depreciation. comprising invoice values plus other charges incurred thereon accumulated to the balance sheet date. 2.Customer Loyalty Programs January 01. 2009 January 01. Cost of leasehold land is amortised over the period of the lease. Goods in transit are valued at cost. 2008 54 55 Estimates and judgments are continually evaluated and are based on historical experience and other factors. Cost associated with maintaining computer software’s are charged to profit and loss account. 2. 2.8 Stores and spares These are valued at cost less provision for slow moving and obsolete stores and spares. In respect of additions depreciation is charged from the month in which asset is put to use and on disposal up to the month the asset is in use. Cost is determined on moving average basis except for the stores and spares in transit which are stated at invoice price plus other charges incurred thereon up to the balance sheet date. An item of property. Capital work-in-progress Capital work-in-progress is stated at cost less impairment in value. at each financial year end. where necessary. Depreciation on all other assets is charged to profit and loss account applying the straight-line method whereby the cost of an asset less residual value. 2. Maintenance and normal repairs are charged to profit and loss account as and when incurred.1 to the financial statements.Presentation of Financial Statements (Revised) IAS 23 .Service Concession Arrangements IFRIC 13 . 2008 July 01. 2. The effect of any adjustment to useful lives is recognised prospectively as a change of accounting estimate. except for freehold land and capital work-in-progress. is written off over its estimated useful life. which requires an entity to capitalize borrowing costs directly attributable to the acquisition. plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. The carrying values of property. The Company accounts for impairment by reducing its carrying value to the recoverable amount. which are stated at cost. The rates used are stated in note 4. construction or production of a qualifying asset (one that takes a substantial period of time to get ready for use) as part of the cost of that asset. useful lives and methods is recognised prospectively as a change of accounting estimate. .Consolidated and Separate Financial Statements (Revised) IFRS 3 .
less an allowance for any uncollectible amounts. to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and/or carry-forward of unused tax losses can be utilised. and tax under the final tax regime. 2. Equal monthly contributions are made. 2. These assets are available for sale in their present condition subject only to terms that are usual and customary for sales of such assets and their sale is highly probable.17 Taxation Current Provision for current taxation is based on taxable income at the current rates of taxation after taking into account tax credits and tax rebates available. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. cash and cash equivalents comprise cash in hand. if any. 2. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. 2. both by the Company and the employees. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange which approximate those prevailing on the balance sheet date.Notes to the Financial Statements for the year ended December 31. excluding finance costs and income tax expense. Gains and losses on translation are taken to income currently. whether or not billed to the Company. Bad debts are written-off when identified.18 Foreign currency translation These financial statements are presented in Pak Rupee. Costs to sell signify the incremental costs directly attributable to the disposal of an asset. The gratuity and pension obligations are calculated annually by independent actuaries using the Projected Unit Credit Method.13 Trade and other payables Liabilities for trade and other amounts payable are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received. The Company provides for compensated absences of its employees on unavailed leave balances in the period in which the leave is earned on the basis of accumulated leaves and the last drawn pay. Foreign currency transactions during the year are recorded at the exchange rates approximating those ruling on the date of the transaction. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised directly in equity in the statement of changes in equity in the period in which they arise. Deferred income tax assets are recognised for all deductible temporary differences and carry-forward of unused tax losses. An estimate for doubtful debts is made when collection is no longer probable. The schemes define the amounts of benefit that an employee will receive on or after retirement subject to a minimum qualifying period of service under the schemes. 2. Defined contribution plan The Company also operates a recognised provident fund scheme for all permanent employees excluding expatriates. The amounts of retirement benefits are usually dependent on one or more factors such as age. which is the Company's functional and presentation currency. Deferred Deferred tax is recognised using the liability method. 2. The most recent valuation in this regard was carried out as at December 31.10 Trade debts and other receivables These are recognised and carried at original invoice amount. based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. 2008. Return on deposits is recognised on accrual basis. and Licence fee is recognised on accrual basis. Previously such assets were included as a part of property. 2. if any.19 Revenue recognition Sales and toll manufacturing income are recorded on despatch of goods.12 Cash and cash equivalents Cash and cash equivalents are carried in the balance sheet at cost. Deferred tax is charged or credited in the profit and loss account except for deferred tax arising on recognition of actuarial loss or gain which is charged or directly credited to equity. 2. The Company measures its non-current assets classified as held for sale at the lower of carrying amount and fair value less costs to sell. being the fair value.14 Provisions Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of obligation. 2008 56 57 2. The liabilities recognised in respect of gratuity and pension schemes are the present values of the defined benefit obligations under each scheme at the balance sheet date less the fair value of respective plan assets.16 Compensated absences . The present values of the obligations are determined by discounting the estimated future cash outflows using interest rates of high quality government securities that have terms to maturity approximating to the terms of the related obligations.15 Employees benefits Defined benefit plans The Company operates an approved funded gratuity scheme and an approved funded non-contributory pension scheme in respect of all permanent employees and senior management staff respectively excluding expatriates. For the purpose of cash flow statement. years of service and salary. to the fund at the rate of 10 percent of basic salary. The carrying amount of all deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax assets to be utilised. balances with banks on current and deposit account and outstanding balance of running finance facilities availed by the Company. on all major temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes. 2. plant and equipment under non-current assets.11 Non-current assets classified as held for sale Non-current assets are classified as held for sale if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use.
858 550.10.287 1.574 18. Rate As at January 01.“IFRS-2 GROUP AND TREASURY SHARE TRANSACTIONS” Upon adoption of IFRS 2 .233 12. PLANT AND EQUIPMENT Operating fixed assets Capital work-in-progress 4.388 339..749 130.036 million respectively) and other reserves would have been lower by the amount of unappropriated profit.338 1.858 Year 2007 Freehold land Leasehold land Building on freehold land Building on leasehold land Plant and machinery Furniture and fixtures Motor vehicles Factory and office equipment 4. Where awarded shares relate to Group Companies.830 493. or expires.168 7.390 1. 2.327 1. The Company enters into derivative transactions mainly to hedge foreign currency liabilities or firm commitments and these are designated as fair value hedge.249 646.144 7. Such cost had not been previously recognised.609 15.565 127.617 5. together with any changes in the fair value of the hedged liability that are attributable to the hedged risk.7.681 107.800 1.22 Derivative financial instruments and hedging activities Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value at each reporting date.867 37.728 95.931 104.272 2.“IFRS 2 .195.20 Borrowing Cost Borrowing cost is recognised as an expense in the period in which it is incurred.367 140.067 83.045 577 577 135 35. 2. -------------------------.415 5 1.778 6 1. the Company has adopted the accounting policy with respect to the recognition of employee benefits cost.257 646.871 544.807 21.453.589 2. CHANGE IN ACCOUNTING POLICY ON ADOPTION OF IFRS 2 .461 20. Additions Writeoff* (note 15) Accumulated depreciation / amortisation Note As at December 31.390 1.238 756. 2008 2007 -------------Rupees in '000------------- 4.793 22. December 31.140 89. a corresponding reserve is created to reflect the equity component.128 50.“Share-based Payment” and IFRIC 11 .218 439* 130 34.960 789.2 4.882 93.144 7.200 439.648 17. in '000 -------------------------- % -----------------------------.25 Share based compensation The economic cost of awarding shares to employees is reflected by recording a charge in the profit and loss account.23 5 5 10 10 20 7-33 130 34.24. Transfers to non-current assets classified as held Charge for Disposals / for Sale As at As at the year Writeoff* (note 15) December 31.133 806.350 480 42.857 782* 8. Had the Company not adopted the said policy. 2. in '000 ------------------------------ A financial asset and a financial liability is offset and the net amount is reported in the balance sheet if the Company has a legally enforceable right to set-off the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.25 above.200 242.307 644. PROPERTY. The above adoption has been applied retrospectively and accordingly comparative amounts in respect of profit for the year and equity have been restated for all the prior periods presented through adjustment to the opening balance of unappropriated profit in accordance with the transitional provisions of IFRS 2. Freehold land Leasehold land Building on freehold land Building on leasehold land Plant and machinery Furniture and fixtures Motor vehicles Factory and office equipment 4.953 466.2 644. arising from the award of shares of sanofi-aventis S.436 36.519 331.175 105.23 Off-setting of financial instruments Year 2008 Note December 31.327 128.259 98.121 4.A. respectively. 2007: Rs.789 782* 6.127 191.294 1.138 56. 2.541 18.1 Operating fixed assets Written down value Cost Transfers to non-current assets classified as held As at Disposals / for sale January 01.088 1.871 544.270 149 345 5. Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the profit and loss account.238 756.872 8.780 439* 6.Notes to the Financial Statements for the year ended December 31.506 9.23 5 5 10 10 20 7-33 124 33.374 176 45. stated above.037 20.350 350 7.Group and Treasury Share Transactions”.1 8.624 717.304 78.497 56.681 107.912 143.391 1.21 Financial Instruments All the financial assets and financial liabilities are recognised at the time when the Company becomes a party to the contractual provisions of the instrument.792 25.587 5.051 18. .350 480 42.128 50. 2.626 26. equivalent to the fair value of shares on the grant date over the vesting period.327 32.910 9.1 8.574 18.712 790.24 Dividends and appropriation to general reserve Dividends and appropriation to general reserve are recognised in the financial statements in the period in which these are approved. 2008 58 59 2.320 million.787 4.193 13.159 109. France. as referred to in note 2.453.200 439. Financial assets are derecognised at the time when the Company loses control of the contractual rights that comprise the financial assets.041 51.284 million and Rs.979 659.036 4.415 8.912 *Assets written off primarily represent items that are obsolete or redundant and have no economic value to the Company.882 93.339 37.873 349.554 31.17. amounts in respect of profit after tax for the year and unappropriated profit would have been higher by Rs.133 806.247 9.194 million and Rs.032 1.Rs.032 406 4. when the obligation specified in the contract is discharged.350 480 42.1 4.115 25.406 12. December 31.1. 3.448 149 480 40.201 1.128 1. cancelled.749 130.833 597.1.“SHARE-BASED PAYMENT” AND IFRIC 11 .815 14.624 4.1.221 14. (December 31.628 196.335 29. Any gains or losses on derecognition of financial assets and financial liabilities are taken to profit and loss account currently.144 1.792 25.111.493 897.542.917 29.905 12.Rs. All financial liabilities are derecognised at the time when they are extinguished that is.367 212.477 176 2.
16th Street.725 440 442 Tender Bid Tender Bid Muhammad Usman (Employee) H.770 423 350 350 450 733 1. Chanesar Goth. Karachi Asim Jamal (Ex-Executive) 111-A. The said change in estimate has resulted in depreciation charge for the current year to be lower by Rs. Jamaluddin Afghani Road. Block 4.000 each. are as follows: 184 976 Description Cost Accumulated Net book Sale depreciation value proceeds -------------------.S.831 294 3. Block-H. Lala Rukh. Kehkashan.No.H.900 23.. Karachi Muhammad Yamin House # 875/3.831 195 195 3.143 8. Thereafter. Karachi -doArif Ali (Employee) House No.Rs.E.375 468 690 Mode of disposal Tender Bid -do-do-doInsurance Claim -do-do-doTender Bid Company Policy Tender Bid Company Policy Tender Bid Particulars of buyers 504 Malik Muhammad Khaliq A-19. Darwashia Mosque. Block-2. The fee for each licence for the first three years was Rs. Block-10/A. Block-2.287 1. T-533/B. having net book value in excess of Rs. Clifton. D.238 191 191 9. R-536. two exclusive licences for the use of the land for a period of 20 years. North Nazimabad. Central Govt. Karachi-29 130 39 91 355 Company Policy Masaud Ahmad (Executive) D-179/1. D-32. Sindhi Muslim Society. Block-7. North Nazimabad. in '000 --------------------857 888 504 245 504 393 390 50 886 1. 4.50. Area.144 1. Block 13-D-2. Karachi Saddar ul Islam (Employee) House No.. Karachi Afzal Hameed (Employee) House No.832 9. 2 & 3. Housing Society. Karachi Muhammad Irfan (Employee) A-531. are depreciated over a period of 4 years. Shah Faisal Town.50.94-A. Karachi. Clifton.60 million and Rs. WAH Cantt. Karachi Kamran Yamin (Executive) A-57.663 million and profit before taxation for the year to be higher by the same sum.3 The details of operating fixed assets disposed off. with the exception of computer servers. Karachi -do-do-doWasim Mirza A-32. in '000 ------------------9. P. Near KMC Primary School. Block-I. North Karachi Munzar Ishaq (Ex-Executive) Shaharyar House. B. the fee is to be enhanced every year on the anniversary of the agreements on the basis of the rate of inflation in Pakistan calculated on a twelve months moving average in the official Consumer Price Index published prior to the relevant anniversary of the agreement. As a result. F. Gulshan-e-Iqbal. 2/590.490 9.995 Various Various 795 583 212 457 Tender Bid 504 balance c/f 9.238 276 9. Shah Faisal Colony. Main Khayaban-e-Nishat.593 210 6. an associated undertaking. Kehkashan.0. Karachi Items having book value of less than Rs.320 - 402 504 126 378 344 3. instead of depreciating the same over 3 years.continued Vehicles 1. Azad Jamhoria Colony. Gulshan-e-Iqbal.1. Gulshan-e-Iqbal. Karachi-2 Siddique Balauch (Ex-Employee) House No. D-39.H. Block-3.Rs.1.2. respectively.82 million. Sector 11-B. Karachi -doZahid Qadri House # 15 A -4. 1997. Gulshan-e-Iqbal.561 864 886 142 237 370 37 168 85 136 384 156 417 458 715 651 134 208 336 308 254 50 502 1.Notes to the Financial Statements for the year ended December 31.320 1. Karachi Syed Viqar Haider (Ex-Executive) A-48. 1997 and October 1.2 During the current year. the Company reassessed the useful lives of its Electronic Data Processing (EDP) equipment (included in factory and office equipment) to reflect more accurately the relationship between the effective useful lives of the assets and resulting depreciation charge.725 Company Policy . respectively.322 18.1. commencing April 12. Karachi -do-do-doInternational General Insurance Ltd. all EDP equipment.1 The Company has granted to Bayer Crop Science (Private) Limited. Bufferzone. B-252. 4. Mode of disposal Particulars of buyers balance b/f Vehicles .405 447 428 966 766 307 1.593 4 4 6. B-20. Phase VI.2. Karachi Moin Mohajir (Executive) 108/11/11 Khayaban-e-Hilal. Karachi 742 491 686 417 56 74 465 256 -doTender Bid 76 97 370 1 2 134 75 95 368 377 421 Tender Bid -doTender Bid 3 828 181 148 396 478 Company Policy Company Policy Description Cost Accumulated Net book Sale depreciation value proceeds -----------------. Karachi Mamoona Firdous Naqvi (Executive) House No. City Homes.A.000 each 94 6 88 635 130 39 91 335 Company Policy Company Policy Tender Bid Yasir Pirmuhammad (Executive) 306 Suleman Arcade. DHA Phase VI Karachi Afzal Yar Khan (Employee) 25-J. 2008 60 61 4.C.
50% (2007: 9.944 Items having book value of less than Rs.449 (17) 14.831 571.875 48. Phase-V Defence Housing Authority.432 28.I Chundrigar Road.362 23.236 729 Year 2007 Computer software 1.361 14.1 Work-in-process As at As at January 01.539 (114) 3.912 14.568 67.000 each Factory & Office equipment 621 365 621 294 71 97 37 Negotiations Company Policy Various Mohammad Amjad (Executive) House No. -----------------------. motor cycles and personal expenses.450 515 1.367 (5.552 1.1 11 11. 2008 2007 -------------Rupees in '000------------LONG-TERM DEPOSITS Long-term deposits Provision against deposits considered doubtful STORES AND SPARES Stores Provision against obsolete stores Grand Total 29.unsecured Employees Current maturity shown under current assets December 31. --------------.582 15.021 .00%) per annum.944 482. These are repayable within five years in equal monthly installments. Building on leasehold land Plant and machinery Others Advances to contractors and suppliers 155. the year December 31.2 Capital work-in-progress 8.170) 26. 2008 2007 -------------Rupees in '000------------3.50.439 (114) 3.614 514.917 1. Loans for the purchase of motor cars and motor cycles are interest free whereas personal loans.750) 502. Karachi 6.284 14. LONG-TERM LOANS Considered good .Rs. in '000 --------------Year 2008 Computer software 1.345 60.815 176 2.141 6. representing capital goods funds and housing scheme.714) 467.806 1.278 Spares Provision against obsolete spares 5.045 31 102 4.827 56 93 7.521 1.196 (1.279 1.Rs.524 30. carry mark-up / interest at the rate of 9. December 31.1 Various 6. Karachi 7.465 14. December 31.209 (5.101) 27.272 533.50.00% and 16. Note December 31.693 25.886 27.000 each 1. in accordance with the Company's policy.965 Rate % Charge As at for As at As at January 01. December 31.104.441 2.077. Addition December 31.Rs.756 3.880 34. except for capital goods funds which is repayable over a period of three years.862 33 581 655 1.072 550.56/1.Notes to the Financial Statements for the year ended December 31.391 31.060 Negotiations Gain due to fire: Building Plant & Machinery Loans to employees have been given for the purchase of motor cars.047 Insurance Claim Adamjee Insurance Company Limited I. 5th Street.906 (20) 14. December 31.265) 8.712 9.384 Finished goods In hand In transit Provision against slow moving finished goods 9. 2008 62 63 Description Accumulated Net book Sale depreciation value proceeds -------------------.872 4.351 507.947 (1.289 2.144 143. respectively.3 519.556 (30.325 3. INTANGIBLE ASSET Cost Accumulated amortisation Written down value STOCK-IN-TRADE Raw & packing material and auxiliaries In hand In transit 9.642 25. in '000 --------------------Cost Mode of disposal Particulars of buyers Note 6.566 76. 14.060 329.965 33 40 541 581 1.965 1.006) 6.2 & 9.836 492.535 574. Off Khayaban-e-Momin.246 41.846 42.319 58.513 16.026 40. December 31.617 4. in '000 ------------------------ 545. 2008 2007 -------------Rupees in '000------------- Plant & Machinery Items having book value of less than Rs.425 4.423 7.430 9.993 (40.
082 (2007: Rs.1 Included herein are the following related parties: Pakistan Telecommunication Company Limited Telephone Industries of Pakistan Packages Limited sanofi-aventis (Thailand) limited 1. 2008 64 65 9.581 9.252 15. December 31. at the end of the current year. TRADE DEPOSITS AND SHORT-TERM PREPAYMENTS Trade deposits Tender deposits Margin against letters of credit Provision against tender deposits considered doubtful Short-term prepayments Note December 31.623) 401 135.62.008) 151.720 147.Notes to the Financial Statements for the year ended December 31.7 33.601 (2007: Rs.1 135 5.775 10. at the end of the current year.969 77.634 332 15. 2008 2007 -------------Rupees in '000------------- 9.144 (2.1 This includes raw and packing material held with third parties. This includes cost of physician samples.15.197.476 19.019) million.445 2.585 11.571 13.269) million.284) 30.008) 137.090 20.unsecured Loans Current maturity of long-term loans to employees Advances Executives Employees Contractors and suppliers 13. TRADE DEBTS .4.229 (7.563) 17. aggregating to Rs.950 4.522) 1.951 15.721 (2007: Rs. 12.4.1 Included herein are the following reimbursements due from the related parties: AGP (Private) Limited Bayer CropScience (Private) Limited Aventis Pharma Deutschland GmbH Sanofi Winthrop Industries Fisons UK 1.951 902 137.205 (2007: Rs.931 (2.3 13.2 9. 11.938 40.088 552 32.147.634 32.297 10.008 166.543 13.171.1 & 13.696 (2.335 2.647 9.006 5.1.976 (2007: Rs.2 The maximum amount due from related parties at the end of any month during the year was Rs.188.8.131.529 (2007: Rs.969 5.119 56 9.054 9.200) million.623 (1.231 151.unsecured December 31.789 Considered good Related parties Others Considered doubtful Others 10. aggregating to Rs.13.278 24.672) million.188 2. This includes finished goods costing Rs.182 24. December 31.1 The maximum aggregate amount due from executives at the end of any month during the year was Rs.229) 206 100.547 23.141 75.757 13 2.1 OTHER RECEIVABLES Due from related parties Employees' pension fund Employees' gratuity fund Insurance claim Amounts due from ex-employees Provision against loans due from ex-employees 13. SHORT TERM LOANS AND ADVANCES Considered good .720 792 87 23 902 Sales tax refundable Provision against sales tax refundable considered doubtful Miscellaneous 10.522 (2.411) million.018 137.817 (2007: Rs.141 6 5.3 13. .329 33.2 13.959 (15.208 26.895 2. at the end of the current year.411 6.088) million valued at net realisable of Rs.265 11.920 13.17. 11. 2008 2007 -------------Rupees in '000------------4.3 10.928 (15.2 The maximum amount due from related parties at the end of any month during the year was Rs. Note 22.920 15.092 19.696) 7.6.008 152.449 6.6 & 13.749) million.136 Provision against debts considered doubtful 10.
1.919) 255.131 77.245) 798 9.452) 236.487 236.006 Experience adjustments Actuarial loss/(gain) on obligation Actuarial gain/(loss) on plan assets 7.466 77.463 14.611 (6.887 2.410 137.449 6.4 The expected return on plan assets is based on the market expectations and depends upon the asset portfolio of the plan.742 10. which is a related party.Rs.857) 3.026 12.707 13.866) 174.467 236.526 161.895 75. in ‘000 Pension Fund 2008 2007 ---------.189 75.450 (5.020) (101.220 (5. 13.101 166 (6.006 15.240) (6.895 (9. Key actuarial assumptions used are as follows: Discount factor used Expected rate of returns per annum on plan assets Expected rate of increase in future salaries per annum Indexation of pension Retirement age 146 985 2.006 89 11 100 Comparison for five years: 2008 2007 2006 2005 2004 --------------------------------.5% 10.667 20.111) 151.919 151.528 (9.279) 166.547 (161.518 4.474 10.291) 28.111 (171. respectively.616 20.111) 151.624) 9.466 77.0% 58 yrs 13.0% 58 yrs 13.062 million.279) 166.308) million due from an insurance company.5% 58 yrs 10.697 (9.919) 255.452 6.742) 137.176 million and negative Rs 2. 13.449 967 1. in ‘000 2007 % 89.107 721 3.895 Funded gratuity plan Debt Others (includes cash and bank balances) 101.Rupees in '000 --------------------------------- 6.898 14. 2008 66 67 13. (Credit) / Expense recognised Service cost Interest cost Expected return on plan assets Annual amortisation of unrecognised Past service cost Gratuity Fund 2008 2007 ---------.0% 13.449 (151.547 (161.5% 8.101) (1.0% 12.026 12.772 Funded pension plan Present value of defined benefit obligations Fair value of plan assets Surplus Experience adjustments Actuarial gain on obligations Actuarial gain on plan assets Funded gratuity plan Present value of defined benefit obligations Fair value of plan assets (Deficit) / surplus (177.291 166 11.899 (118.393 (5.857) 980 144.196) 107.803 (145.975) 115.463 14.901 77 23 100 (177.799 16.5% 10. the amount of expected contribution to gratuity and pension funds in 2009 will be Rs 12.616 62.953) (146) 177.410 61 39 100 134.513 864 8.667) (2.395 16. Present value of defined benefit obligations Fair value of plan assets Net assets / (liability) in balance sheet Movement in asset / (liability) Prepayment as at January 1.452) 236.641 13. Expected return on plan assets Employer contributions Benefits paid Actuarial gain Fair value as at December 31.865 Actual return on plan assets Movement in the defined benefit obligation Obligation as at January 1.466 214.204 5.006 6.813) 214.410 (4. 2008 were as follows: Rs.624 (5.5% 10.869) 11.466 35 65 100 182. in '000 ---------Balance sheet reconciliation as at December 31.895 (126.279 126.007 (137.Notes to the Financial Statements for the year ended December 31.449) 8.900 166.352 49.107 166.327) 5.006 6.347 (6.414 54.327) 7.731 10.953) 985 255. in '000 ---------Plan assets comprise of: Funded pension plan Debt Others (includes cash and bank balances) 2008 % Rs.869) (144.869) (144.527 151.204 171.345) 194.467 6. .955 16.510 64. 31 Movement in fair value of plan assets Fair value as at January 1.955 16.7 Included herein is a sum of Rs.245 2.611 (24.898 14.533) (967) 25.813 4.410 (4.450 2.158) (1.803 1.416 (2007: Rs.220 (13.547 6.5 Based on actuarial advice.641 10.786) 1.0% 13.5% 58 yrs 10.1.452 144.955 (3.568 10. 20.053 255.901 24.999 8. at the beginning of the period. 13.889 3.645 236.799) 2.901 151.611 151.097) (4.Rs.449 (171.547 62.5% 10.901 75.039) 6.449) (2.347 (20.288 (11.671 million due from an insurance company in respect of electric panels and cables damaged during the current year on account of fire at the Karachi manufacturing site.901 75.0% 6.731 36.533 (6.6 Included herein is a sum of Rs.841 6. Service cost Interest cost Benefits paid Actuarial (gain) / loss Obligation as at December.393 (15.3 The status of the funds and principal assumptions used in the actuarial valuation as of December 31. The excess of amount claimed over written down value of electronic panels and cables has been recorded under other operating income (note 25).111 10.0% 12. Credit / (charge) for the year Contribution during the year Actuarial gain / (loss) recognised in equity Prepayment / (liability) as at December 31. for returns over the entire life of the related obligation.413 166.722) 161.
constituting 52.700 01/06/2009 15/12/2010 14/12/2011 31/05/2015 14/12/2016 13/12/2017 70.50. 2008 2007 -------------Rupees in '000------------- Origin Date of grant Vesting period (years) Options granted (number) Start date of exercise period Expiration date Exercise price () During the current year. Satellite Town.469 Ordinary shares of Rs.1 8. aggregating to Rs. December 31.80%). 2008 2007 -------------Rupees in '000------------(Restated) 5. 2009. a total of 5.538 36.0..A.A. with the approval of shareholders of the Company.400 35.800 13. . France sanofi-aventis S. representing refundable deposits received from distributors. 2008.08%) and Plasma investments UK Limited (16.. December 31. sanofi-aventis S. 2008 68 69 Note 14. 2008 2007 ------------Number of Shares-----------December 31.A. France (the “Parent Company”) granted a number of equity-settled share-based payment plans (stock option plans) to some of its employees. France.705 1.500 11. including employees of sanofi-aventis Pakistan limited (the “Subsidiary Company”). subject to the fulfillment of the vesting conditions.320 48. sanofi-aventis S.099.A.at written down value 15.1 Share-based compensation plans As at December 31. These are measured at the lower of carrying amount and fair value less cost to sell.690. 17.A. The benefit cost recognised therefore relates to rights that vested during the reporting period for all plans granted by sanofiaventis S. 15. RESERVES Capital reserves Long term liabilities forgone Difference of share capital under scheme of arrangement for amalgamation Other Note December 31.676 17.38 66.255 935..1 15.994. In accordance with IFRS 2 (Share-Based Payment)...000 24. Options outstanding at December 31. services received from employees as consideration for stock options are recognised as an expense in the profit and loss account.1 The Company in its fortieth Annual General Meeting. resolved to dispose freehold land and building located at 87-A.88% of issued share capital of the Company. France.201 670 8.538 141.909 1. transporters and suppliers.000 17. The fair value of stock option plans is measured at the date of grant. with necessary related formalities expected to be completed by February 16. 2008. The expense corresponds to the fair value of the stock option plans of the shares of the parent company and is charged against income on a straight-line basis over the four-year vesting period of the plan.186 2. France 31/05/2005 14/12/2006 13/12/2007 4 4 4 13.900 40.A. including sanofi-aventis Pakistan limited.33 10. The agreement in this regard has been executed. with the corresponding entry recorded as equity. These options have been granted to certain corporate officers and employees of the Group companies.102 December 31. CASH AT BANKS In current accounts 14.10 each. December 31.935 18. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE Freehold land Building on freehold land .345) million.A. France sanofi-aventis S. As a result thereof. has remained the ultimate parent company. which are still outstanding.91 62.935 18.A.Germany (36. 2008 (number) 16. These plans entitled the eligible employees to acquire shares of the parent company by exercising options granted to them.595 (2007: Rs. held on March 19. using the Black & Scholes valuation model. France. taking into account the expected life of the options.500 13.167 976. France to the employees of sanofi-aventis Pakistan limited and accounted for under IFRS-2.1 2.) from Hoechst GmbH.A.700 The exercise of each option will result in the issuance of one share of sanofi-aventis S. 2008 2007 -------------Rupees in '000------------17.017. share equivalents.036 40..1 Included herein is a sum of Rs. SHARE CAPITAL December 31. were transferred to SECIPE (a wholly owned subsidiary of sanofi-aventis S.164 5.971 835..371 971. Rawalpindi.0.. Details of the terms of exercise of stock subscription options granted under the various plans are presented below in sanofiaventis S.020. a group restructuring exercise was carried by the Parent Company. December 31. However. The table shows stock subscription option plans granted by sanofi-aventis S. the Company had following equity settled share-based compensation plans: (a) Stock Option Plans: sanofi-aventis S.Notes to the Financial Statements for the year ended December 31.871 Revenue reserves General reserve Unappropriated profit 14.A.1 15. France..300 13.
2007 of which exercisable Options granted Options exercised Options cancelled Options forfeited Options outstanding at December 31.936 4.92 per option.797 29. The expense recognised for stock option plans.836 410.548 million at the grant date. 2007) i. As of December 31.1 19.882 594.923) (3.. sanofi-aventis S.203 (20. with no reduction for any lock-up period. computed on a historical basis: 19. The subscription period was from November 19. France.645 (7.1. An expense of Rs. including employees of the subsidiary companies an employee share ownership plan.147 (4.592 1.301) (8.3 The fair value of the options granted in 2007 at grant date is 11. representing non-refundable security deposit received from the buyer during the current year in respect of non-current assets held-for-sale.209 1.299 10.e.130 Note December 31.10 million (2007: Nil).551 94 11.301 277. At the end of 2007.508) million due to related parties on account of expenses incurred by them on behalf of the Company.A. 2008 2007 -------------Rupees in '000------------66. and the corresponding entry taken to equity.8.A. December 31. 2008 of which exercisable Measurement of stock option plans Stock options plans were not granted during the year 2008.2 491.secured 872. The following assumptions were used in determining the fair value of the plan awarded in 2007: • • • • Dividend yield: 3. The discount is measured at the subscription date and recognised as an expense. Under the plan.2 Workers' Profit Participation Fund Balance at the beginning of the year Allocation for the year Interest on funds utilised in Company's business Amount paid to the Trustees of the Fund 19. as discussed in note 15.3 13. 2007 at a 20% discount to the average quoted market price for the 20 trading days preceding the date on which the Board of Directors of sanofi-aventis S.e.stock in trade . the shares acquired under the above scheme have a locked-up period of 5 years i.254 345 4.A. the total cost related to non-vested share-based compensation arrangements amounted to Rs.000) 35.5.087 19.976 298.336 6.998 337.14.700 Weighted average exercise price per share ( ) 68. France approved the plan (October 30.55 per share.684 191.1 Included herein is a sum of Rs. There were no share issues reserved for employees during the year 2008.195 million during the year ended December 31.188 4.848 72.446 688. SHORT-TERM BORROWING Running finances utilised under mark-up arrangements . (b) Employee share ownership plans: The sanofi-aventis Group may offer its employees the opportunity to subscribe to reserved share issues at a discount to the reference market price. 2007. are nontradable for a period of 5 years.869 1.923) (327) (3.701 3.104 226.Others Liabilities outstanding for more than three years 19. 19. 2007 of which exercisable Options granted Options exercised Options cancelled Options forfeited Options outstanding at December 31.951) 70. is presented below: Number of options Options outstanding at January 1. Shares allotted to employees under these plans fall within the scope of IFRS 2.284 million during the current year and Rs. France offered its employees.757 30.928 6.081 (2007: Rs. discounted price at 48.936 2.stores & spares .040) 73.3.884 shares were subscribed by the employees of sanofi-aventis Pakistan limited.726 853 24.66 62.999 million was recognised in respect of this share issue in the profit & loss account for the year ended December 31.900 40.18.512 542.615 19.21 18.148 27.21% 26.trade debts .276 3..333 million to be recognised over a weighted average period of 3 years.36% Risk-free interest rate: 4. 2007 through November 30.936 26.267) 6. 2008 70 71 Summary of stock option plans: A summary of stock options outstanding at each balance sheet date. The fair value of the plan awarded in 2007 to the employees of sanofi-aventis Pakistan limited amounted to Rs.301 5. 20.615 11.Notes to the Financial Statements for the year ended December 31.. 2008.800 13. and of changes during the relevant periods.700 (5.33 66.894 892. and a total of 1.08% Residual life: 6 years Volatility of sanofi-aventis S. employees could acquire shares ranking for dividend from January 1.7. DEFERRED TAXATION Credit balances arising from: Accelerated tax depreciation allowance Recognition of actuarial gain on retirement benefit plans Debit balances resulting from: Short-term provisions against: . amounted to Rs.692) (4.273 18. 2007.708 (4.272 931 27.50 68.615 1.326 66. 2007.185 24 26 6.595 14.771 4.535 17. TRADE AND OTHER PAYABLES Trade Creditors Related parties Other trade creditors Other payables Accrued liabilities Royalty and technical fee Advances from customers Workers' Profit Participation Fund Workers' Welfare Fund Central Research Fund Compensated absences Security deposits Contractors' retention money Employees gratuity fund Unclaimed dividend Unrealised loss on re-measurement of forward exchange contract 19.222 102.030) 4.53 66.396) (11.936 . shares.3 Included herein is a sum of Rs. 19. Further.811) (341) (5. “Action 2007”.
836 6.238.811.403 3.813 4.641 (174) (279) 95.000 per day. the ITAT has maintained the CIT (Appeals) order of setting aside the additions except of transfer pricing and certain selling expenses which have been deleted by CIT (Appeals). (9.172 1.139) million have been given to the Collector of Customs in respect of exemption of levies on import of specified pharmaceutical materials.545) million as at the end of the year.192.198 10.981 3.783) (307.570) million at the end of the year.422 Provision for slow moving stores and spares . OPERATING COST Cost of Sales 2008 Distribution and marketing expenses Administrative expenses 73 Total 2007 2008 2007 2008 2007 2008 2007 (Restated) (Restated) (Restated) (Restated) ----------------------------------------.242 4.542 (46.301 462 60.600 1.621 8.813.366 507. payable over the next five years.171 5.520 13.640 6.921 576.061 7.895 28.4115 and Rs.note 23.292 521.933 60.899 3.577) (285.48657 (2007: Rs.906 9. pending a final decision in these matters.261 (34.542 .e.76 (2007: Rs. samples and sales promotion Commission expenses Software license / maintenance fee Provision against loans to ex-employees written back Provision for doubtful trade deposits written back Provision for doubtful trade debts written back Bad debts written off / (recovered) Other expenses 5.661 50.137 10.651 32. wages and other benefits .203.776 (41. latest by December 31. Claims not acknowledged as debt amounted to Rs.508 15.898 6.647.490 386 1.346. Out of the facilities of Rs.15. the unutilised amount was Rs.719 1.896.204 32. from assessment years 1998-99 through 2002-03.846 3. subject to the consumption of such raw materials within the specified period and to various other parties.094 13.482 42.721 4.847 3.792 5.900 28.135 5.Notes to the Financial Statements for the year ended December 31.570 Commitments in respect of foreign exchange forward contracts with banks as at December 31.329 53.599 (533.180 164 212.143 9. The rates of mark-up range between Rs. However.455 Raw.209 212.894 5.646 8.137 Royalty and technical fee (note 23.011) (8.597 (283) (398) (540) (21) 13.880 848 203.627 (21. 2008 amounted to Rs.197. rates and taxes 3.938 1.217 million has been made in these financial statements. 251.963 21.921 537.031 Advertising.743 7.648 23.898 6.1.993) 3.1 Contingencies (a) Bank guarantees.627 2.773 1.053 7. auxiliary and packing material consumed 2.967 573 3.238.997 2009 2.796 5.556 6.804) million for opening the letters of credit.014) 4.107 70.875 3.413 Traveling and conveyance 35.900 1.198 24.910 22.725) million as at the end of the year.458 2.422 72 106.489 2. the department has filed appeals against the decision of the ITAT before the High Court.078 123 203.900 216.584 Stationery and supplies consumed 3.360) 3.253 2.964) 17.189.95 to 1997-98.194 521.446 55 736 7.995 8.1.403 3.973 117.011) (8.267 (b) (c) (540) 70 (21) 706 17.855 370 8.The said additions and disallowances have been set aside by the Income Tax Appellate Tribunal (ITAT).783 53.095 27.836 225.113 2.767 756.834 6.135 757.877 11.347 237. The TO has started fresh assessment for all the years i.808 11.620.936) (c) 22.13.835 207.361 2.705 2.726 105.813 591 8.967 Opening work in process Closing work in process Cost of goods manufactured Opening stock of finished goods Finished goods purchased Finished goods written off Cost of samples issued under distribution and marketing expenses (Reversal of) / provision against slow moving finished goods Closing stock of finished goods 23. For the assessment years 1998-99 and 1999-2000. no provision of approximately Rs.312.0.709 28.336.126 11.282 Publication and subscription 97 1.805.391) million at the end of the current year.839. as at the end of the current year (2007: Rs.930 10.513 50.011 1.828 Handling.126 Stores and spares consumed 11. For the assessment years 1998-99 to 2002-03.406 4.049 757.329 1.545 247.26.700 17.809. are as follows: December 31. The Company has filed miscellaneous application before the ITAT against the order of ITAT.835 2.244 5.284 576.268 53.798 (283) (398) 21.784 (2007: Rs.342 84 869 2.0. freight and transportation Communication 3.821 628 1.998 (8.334 232.090 34.729 1.net 72 Depreciation / amortisation 77.301 756. royalty paid to an associated company and certain other expenses.328 247.862 16.737 819 122.199 3. The facilities are secured against first pari passu charges on stock-in-trade and book debts of the Company.584 304 184.108.40.2061 2.863 2.1 Staff costs Salaries.839.1.70) million.328 million.327) 2.898 13.050 23. December 220.127.116.116) (283.684.023 267.640 (41.574 9.700 2. auxiliary and packing material written off 6.570 32.642 4.119 1. 2008 2007 Years -------------Rupees in '000------------2008 9.063 660 11.124 2.614) 19.863 4.840 232.058 87.1.862 (30.209.148 Security and maintenance 3.993 522.692 15.566. NET SALES Gross sales Local Export Toll manufacturing Returns Discounts 4.172 1.0.198 8.719 1.179. 21.347 6.314 Lease rentals 1.1) 267.836 237.520 (2007: Rs.528 4. These facilities expire on various dates.676.627 122.883 6.511 2010 708 708 2011 354 354 3.748) (330.090 Rent. In finalising the tax assessment of former Rhone Poulenc Rorer Pakistan (Private) Limited for the assessment years 1994 . disallowances out of sales promotion.860 636 9. 2008.011 23.910 22.926 1.2) Insurance 2.989 35.936 178.840 Fuel and power 108.886 3. Commitments for rentals under operating lease agreements in respect of vehicles amounted to Rs.906 10.710 14 201 6.089 13.328 3.2904) per Rs.840 228.521 6. guarantees and bill discounting.692.276 Repairs and maintenance 42.500 13.502 600. the TO had again made similar additions.311 5.758) 421. the ITAT has set-aside the sole issue of Transfer pricing which was deleted by CIT (Appeals).709 4.1 Training expenses Defined benefit plan Defined contribution plan Share based payments 255.254 8.517 Staff costs (note 23.631 2.016 (2007: Rs. CONTINGENCIES AND COMMITMENTS 23.801 165.2 Commitments (a) (b) Commitments in respect of capital expenditure contracted for amounted to Rs.808 23.805 4.556 (2007: Rs.287 (2007: Rs. hence.090 5.290.570 3.0.556) (507.292 480.255 (2007: Rs.963 21.294 Recovery of service charges from outside parties (8. The management of the Company is of the view that the final outcome of the above referred matters will be in favour of the Company and. 21.631 2.862 10.727 324 3.772 80.228 9.862) 5.556 37.132 227.045 12. the Taxation Officer (TO) made additions mainly on the alleged contention that the Company had paid excessive amounts for importing certain raw materials.320) million.876 1.758 2.327) 105.2753 and Rs. 2008 72 The facilities for running finances available from various banks under mark-up arrangements aggregated to Rs.Rupees in '000 ----------------------------------------Raw. For assessment years 2000-01 to 2002-03.904 (174) (279) 70 11.327. aggregating to Rs.
2008 2007 -------------Rupees in '000------------(Restated) 25.273 4.781 25. Note 26.Tariq Wajid. France (formerly Rhone Poulenc Rorer S.772 5.589 27.735 2.562 16.772 32.546 21.1 Explanation of relationship between accounting profit and tax expense: Accounting profit before taxation Income tax at the applicable tax rate 35% (2007: 35%) Effect of tax under presumptive tax regime and other adjustments . OTHER OPERATING INCOME Income from financial assets Interest on loans to employees Income from related parties License fee Interest income Income from non-financial assets Gain on sales of operating fixed assets Others Scrap sales Liabilities no longer payable written back Export rebate claims Miscellaneous 4. 23.395 (20.312 705 63.S.long term financing .1 Included herein a sum of Rs. 375 5.Basic and Diluted BASIC EARNINGS PER SHARE There is no dilutive effect on the basic earnings per share of the Company. to achieve rationalisation and corporate restructuring..6. 2008 74 75 23.E.2.798 22.284 (2. Chairman.425 3. respectively. FINANCE COSTS Mark-up on: . which is based on: Net profit for the year 38.short term running finances .H. December 31.97 7.1.096 115.495 343 1.936 3.374 57.1.615 1.809 204 5.891 40.803 430 38.233 11.902 61. P.2 27.A.594 19.757 3.644. Lahore (Syed Babar Ali.599 35.064 533 172 288 130 1.018) 25. 1997 between Aventis Pharma S.2 1.580 1.528 12. 2008.2 94 3.602) 46.644.284 46.17.H.269 Number of shares 9.1 Auditors' remuneration Audit fee Review of half yearly financial statements Special certification and reportings Out-of-pocket expenses 24.007 7.549 1.212 40.net Effect of share-based payments Effect of prior years' tax charge 84.2 Names of donees in which a director or his spouse has an interest: • LUMS School of Science & Engineering D. TAXATION Current Prior Deferred 47. OTHER OPERATING EXPENSES Auditors' remuneration Workers' Profits Participation Fund Workers' Welfare Fund Fixed assets written-off Contribution for research and development fund Legal and consultancy charges Donations Exchange losses .514 14.1 19. representing excess amount claimed over written down value from an insurance company in respect of fixed assets damaged due to a fire as explained in note 13.7.568 (20. Chairman. France) and sanofi-aventis Pakistan limited [formerly Rhone Poulenc Rorer Pakistan (Private) Limited] was terminated effective April 1.293 million.430 million and Rs.1 December 31.365 29.527 2. are the members of the Board of Trustees of Lahore University of Management Sciences) • World Wide Fund for Nature Fortune Centre. December 31.Notes to the Financial Statements for the year ended December 31.113 2.short term loans December 31.308 Weighted average number of Ordinary shares 5.638 Earnings per share .726 853 7.C.688 64. December 31. and Mr. 2008 2007 -----------------Rupees ----------------(Restated) 3.392 1.123 24.519 87.781 799 6.1 The Company as a result of voluntary separation scheme.A.299 931 2.414 1..477 3.81 .018) 40.832 530 177 13. has paid a sum of Rs.760 9.452 1. Karachi (Syed Babar Ali.149 314 1.net Miscellaneous 24. Note 2008 2007 -------------Rupees in '000------------24.429 52.594 83.2 The licence and technical assistance agreement dated September 11.123 6. is a member of the Fund) 25.302 560 190 254 60 1. December 31. Chief Executive. December 31.589 - 600 25 30 December 31.558 million to the workers at Wah Cantt and to the sales and marketing personnel. 2008 2007 -------------Rupees in '000------------- 83.A.987 Interest on Workers' Profit Participation Fund Bank charges 24.748 846 44.064 4.760 75.1 28.096 35.
596 8.Rupees in '000 ----------------------------------------8.743 16.813 70 38 6.813 38.230 12. employees' pension fund.net Increase in current liabilities: Creditors.051 5. 2008 December 31. 2008 2007 -------------Rupees in '000------------(Restated) 31.003) 64.542) 20.1 Working capital changes Decrease / (increase) in current assets: Stores and spares Stock-in-trade Trade debts Loans and advances Trade deposits and short-term prepayments Other receivables .833 105.505 8.113 11. directors and key management personnel of the Company. TRANSACTIONS WITH RELATED PARTIES The related parties of the Company comprise associated undertakings.7.377) Note December 31.1 Associated Associated undertaking undertaking by virtue of Retirement by virtue of Retirement Common Benefits Common Benefits Group Group Directorship Plans Plans Companies Total Companies Directorship Total ---------------------------------------------.907 1. There have been no guarantees provided or received for any related party receivables or payables.720.816 26.137 16.890 (84.185 52 72.2.907 1.1 Further.net (excluding accruals for financial charges and unclaimed dividend) 1. REMUNERATION OF THE CHIEF EXECUTIVE.778 (2007: Rs.421 26.440 7.407 41 Number of person .796) (39.423 21 53 16. employees' provident fund.421.506 (2007: Rs.083) Managerial remuneration Profit sharing bonus Retirement benefits Perquisites and benefits: Rent and utilities Medical expenses Club subscription 2008 2007 2008 2007 2008 2007 2008 2007 ----------------------------------------.600 6. The balances are unsecured and are settled in accordance with the terms and conditions of the transactions.910 1.Pension Fund . CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise of the following items: Cash at bank .043 3. to the Chief Executive.891 146.809 1 3.637 6. 2008 are included in trade and other payables.852 1.601 (231.465 20. employees' gratuity fund.057 68 41 15.954 24.815 4.639 1 49.987 (84.922 1 7.321 9.172 17.765 37 95.942) (2.257 10.914 1.233) 7.137 29.186 (872.586) million respectively. 2008 76 77 Note December 31.Gratuity Fund .377) 209.173 (3. There are no transactions with key management personnel other than under the terms of employment.323 131 95.275 1.070 i) ii) iii) iv) v) vi) vii) viii) 29.Notes to the Financial Statements for the year ended December 31.937 166 119.308) 10.4.949 32.363 3.051 5.450 15. The Company in the normal course of business carries out transactions with various related parties.297 1 3. accrued and other liabilities .759.923) (14.364 166 2.352 4. in ‘000 --------------------------------------------------Gross sales Purchase of goods Purchase of services Recovery of service charges and other expenses Licence fee of land received Interest income earned Royalty and technical fee Contributions paid .Rs.735) 9.2 The related party status of outstanding balances as at December 31.current accounts Running finances utilised under mark-up arrangements 14 20 2.107 5.718) (279.680 799 28.107 5. December 31. including benefits.Provident Fund 32.453 1. remuneration of Executives and the Chief Executive are disclosed in the relevant notes.194 8. December 31.772 17.172 48 37.172 8.296 818 604 1.366 (27. 2007 29.700 (375) 87.593 842 659 1.813 166 2. trade debts and other receivables.050 1. Director and Executives of the Company are as follows: Chief Executive Director Executives Total 199.185) (540.772 6.450 15. CASH GENERATED FROM OPERATIONS Profit before taxation Adjustment for non-cash charges and other items: Depreciation Operating fixed assets written-off Gain on sales of operating fixed assets Expenses arising from equity settled share-based payment plans Retirement benefits Interest income Financial charges Working capital changes 84.031) 355 (13.817 8.391 50 48.321 9.891 366.2.429. 2008 2007 -------------Rupees in '000------------- 30.267) 31. the impact of benefits available to the Chief Executive and Others recognised by the Company in the expenses during the year on account of share-based payment plans aggregate Rs.326) 2.275 1.377 2.608) million and Rs.743 32. 32.512) (870.474 4.959 39 61.215 4.508 (1.041 2.180 1. 31.113 105.102 (542.891 The transactions with the related parties are made at normal market prices.976 151 76 7.913) (93.877 95.284 8.364 799 28. Terms and conditions of transactions with related parties 106.835 343 (1. A DIRECTOR AND EXECUTIVES The aggregate amounts charged in the financial statements for the year in respect of remuneration. Amounts due from and to related parties.132 (32.365 115. Other material transactions with related parties are given below: December 31.369 8.817 8.
972 57. 2007 34.185 2. December 31. 2009 proposed a final dividend of Rs.745.006 17. Net debt is calculated as total bank borrowings less cash and bank balances.250 (2007: Rs.current accounts Financial liabilities Running finances utilised under mark-up arrangements Trade and other payables Accrued mark-up 9 1. CAPACITY AND PRODUCTION The capacity and production of the Company's manufacturing facility is undeterminable as it is a multi product plant involving varying processes of manufacture.367 33. 34. the impact of benefits available to the Chief Executive.147 10. The Company uses forward contracts to hedge its exposure to foreign currency risk. due to the suspension of forward contracts by the State Bank of Pakistan effective July 8.654.512 840.920 14.924 840.425 9.500). MOVEMENT BETWEEN RESERVES AND PROPOSED DIVIDEND The Board of Directors in its meeting held on February 13.note 14 Net Debt Total equity 872.254.186) 870.Notes to the Financial Statements for the year ended December 31.05-10. 37.951 151. Total capital is calculated as equity. 2009.531 4. the Chief Executive.190. respectively.1.792 2.531 2.155 151. in ‘000 --------------------------------------------- Total borrowings Less: cash and bank balances . Rs.612 1.865 32.700 655.792 2.528 (2007: Rs.325 7.951 3.462 542.986.198 655.6 Fair values of financial assets and liabilities The carrying values of all financial assets and liabilities reflected in the financial statements approximate their fair values. The above remuneration of Director does not include amounts paid or provided by the related parties. 2008.2.705 2.951 3. The Company monitor its capital on the basis of the gearing ratio.114. Due to effective cash management and planning policy.257.880 21.527 665. 34.186 245. DATE OF AUTHORISATION FOR ISSUE These financial statements were authorised for issue on February 13.503 million for approval of members at the Annual General Meeting to be held on March 25. 33. Aggregate amount charged in the financial statements for fee to Directors other than working Directors was Rs.185 542.Rs.1.527 665. issue new shares or sell assets to reduce debt.110 33. Further.086 872.995 (2007: Rs. December 31.512 151.086 1.185 137.257 4.920 9. In order to maintain or adjust the capital structure. 34.5.60 - 35.006 17.512 872. the financial assets which are subject to credit risk amounted to Rs.086 872.3 Foreign exchange risk 15. The Company is exposed to foreign exchange risk due to transactions denominated in foreign currencies. 2008 2007 -------------Rupees in '000------------(Restated) Total 79 In addition to the above remuneration.1 Financial assets and liabilities Interest / mark-up bearing Effective Rate of interest % December 31.527 1.329 542.865 32.972 57.769 840.512 2.4. 10. .705 2.147 10. 2009 by the Board of Directors of the Company.3.186 257.102 193.512 (2.859 Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. This ratio is calculated as net debt divided by total capital.185 542.512 872. the Company aims at maintaining flexibility in funding by keeping committed credit lines available.920 3.443) million and Rs.40 per share for the year ended December 31.867 2.951 11.951 7.921) million.329 4.280 30.674 6.326 1.865 32.1. however.207 33% Gearing ratio 34.803 17.705 2.00 & 16.current accounts Financial liabilities Running finances utilised under mark-up arrangements Trade and other payables Accrued mark-up 1.2 Capital risk management The Company's objective when managing capital is to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.792 2. 2008 and 2007 were as follows: December 31.000 (2007: Rs. The Company has no significant concentrations of credit risk. The gearing ratio as at December 31.029 542. The Company's credit risk is primarily attributable to its receivables. a Director and certain Executives recognised by the Company in the expenses during the year on account of share-based payment plans aggregated to Rs. These financial statements do not include the effect of the aforementioned proposed dividend.608) million.209 21.647 57.76 - Foreign exchange is the risk of loss through changes in foreign currency exchange rates.257 872.506 (2007: Rs.674 137. where appropriate.938 44% 542. Out of the total financial assets of Rs.083 1.116. a Director and certain Executives are also provided with free use of the Company maintained cars. as shown in the balance sheet plus net debt. 2008 78 34. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES 33. amounting to Rs. the transactions of the Company are exposed to foreign exchange risks.2.102 188.102) 540.726 872.5 Liquidity risk Financial assets Trade debts Loans to employees Deposits Other receivables Cash at bank .181 872.726 1.193. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 36. the Company applies credit limits to its customers and ensures that sales of products and services are made to customers with appropriate credit history and credit worthiness.50 Deposits Other receivables Cash at bank .4 Interest rate risk Rates on both short term and long term finances vary with the changes in KIBOR rate.867 4.463 Non-interest / mark-up bearing Maturity upto one year Maturity after one Sub-total year Maturity upto one year Maturity after one year Sub-total ------------------------------------.029) million.147 10.462 1.502 137.02-17.4. the Company may regulate the amount of dividends paid to shareholders.581 17.124 1.181 (2007: Rs.207.830 3. 2008. 34.102 179.185 (2. 2008 Financial assets Trade debts Loans to employees 9. To manage exposure to credit risk. 13.927) million.186 252.077 3.185 655.1 Credit risk Credit risk represents the risk of a loss if the counter parties fail to perform as contracted.
GENERAL Figures presented in these financial statements have been rounded off to the nearest thousand rupees.760 39.644.099 140 19.604 26.312.002 1.461 236.338 149.00 .312 900 Pattern of shareholding as at December 31.212 1.442 55.757 395.894 5.364 342.805 465.080. Undertakings and Related Parties NIT and ICP Directors.83 11.099 229.Notes to the Financial Statements for the year ended December 31.49 4.825 1.742 51. plant and equipment (note 4. Syed Babar Ali Chairman Karachi: 13th February. 2009 Tariq Wajid Chief Executive Shareholders Category Number of Shareholders Number of Shares held % Associated Companies.120.932 9.20 0.602 510.200 204.161.45 4. COMPARATIVE FIGURES Prior year's material figures have been reclassified as follows for better presentation: From Property.284.228 46.800 74. CEO and their Spouses Public Sector Companies and Corporations Banks.683 4.31 0.000 1.430 110. Non-Banking Finance Institutions Insurance Companies Others Individuals 3 2 12 2 2 1 21 807 850 6. 2008 80 38.099.896 137.net Cost of Sales (note 23) Others Intangible assets (note 5) Trade and Other Payables (note 19) Other trade creditors Retention money Other operating expenses (note 24) Exchange losses .net Cost of Sales (note 23) Repairs and maintenance To Rupees in ‘000 458 5. 2008 81 Shareholding From 1 101 501 1001 5001 10001 15001 20001 50001 55001 135001 200001 225001 235001 340001 510001 1075001 1160001 5095001 To 100 500 1000 5000 10000 15000 20000 25000 55000 60000 140000 205000 230000 240000 345000 515000 1080000 1165000 5100000 Number of Shareholders 312 357 81 74 7 2 4 2 1 1 1 1 1 1 1 1 1 1 1 850 Number of Shares Held 15.11 100. Development Finance Institutions.685 62.760 65.200 46.644.294 50.469 9.209 44.1) Trade and Other Payables (note 19) Accrued liabilities Finance costs (note 26) Exchange losses .61 13.
894 1.726 279.896.678 52.700 951.096 231.292 4.714 1.692 100 NIT and ICP (name wise detail) National Bank of Pakistan.080.914 7.495 252. Naiyar Zamani Gohar Mrs. Perwin Babar Ali Syeda Henna Babar Ali Public Sector Companies and Corporations Banks.000 3 3 1 1 1 1 2 2 535.004. (Pvt) Ltd.284.825 WEALTH DISTRIBUTION TO EMPLOYEES Staff cost Workers' Profit Participation Fund 576.766 130.469 1.692 11 3 14 100 Wealth Distribution 2008 TO EMPLOYEES TO GOVERNMENT TO SHAREHOLDERS RETAINED IN BUSINESS 28% 27% 1% 13% 58% 5% 14% 2007 54% Note: Previous year's figures have been restated in accordance with the audited financial statements.161.434 22.503 1 42.894 51.026 53 1 54 TO GOVERNMENT Income tax Custom duty & sales tax Workers' Welfare Fund 46.357 1.004.054 21.267 (2.346.099 2 465.850) 951. 2008 82 Statement of Value Added 83 2008 Rs.966. .000 (Restated) % Under clause (i) of sub-regulation (XIX) of Regulation 37 of chapter (XI) of the Listing Regulations of Karachi Stock Exchange (Guarantee) Ltd.090 6.161.809 1. Shareholder Category Number of Shareholders Number of Shares held WEALTH GENERATED Net sales Materials and services Other income Associated Companies.698 8.469 1. Syed Hyder Ali Mrs.Pattern of shareholding as at December 31. Development Finance Institutions.898 1. France IGI Insurance Limited Ali Gohar & Co. CEO and their spouse and minor children (name wise detail) Mr.394.340 510.615 580.936 528.212 16. Non-Banking Finance Institutions Insurance Companies Shareholders holding 10% or more voting interest SECIPE of Paris.907 58 58 521.445 3.589 208.213) 930. Directors. Undertakings and Related Parties SECIPE of Paris.179 5 23 28 40.487 11 2 13 100 95. 1 1 1 5.Trustee Deptt. Syed Babar Ali Mr.835 32.000 % 2007 Rs. Pir Ali Gohar Mr.099. Arshad Ali Gohar Mr.638 951. France IGI Insurance Limited National Fertilizer Corporation 1 1 1 5.529 4 22 1 27 TO SHAREHOLDERS Dividend RETAINED IN BUSINESS Depreciation Retained profit 13.865 128.200 106.099.528 (3.132 24.442 4.487 100 3.437 5 2 1 140 19.690 18.
0 73.594 11.1 227.867.2 11.5 36.2 51.594 70.501) 30.070 (183.2 2.395 96.599 (206.9 125 29.3 0.5 19.982 398.8 2.4 17.4 1.693 1.3 (27.988.1 4.8 2.8 0.618) 694.239 83.02 7.854 632.3 0.7 7.0 1.779 1.1 1.428.7 1.162) 510.5 8.494) 154.019.238 69.355 Activity Ratios Inventory Turnover Average No.053 96.6 137 33.164 1.167 296.749 3.178.342 411.0 86.392 1.4 20.7 18.104.22.168 352.1 48.896.9 0.776) Profitability Ratios Sales Growth COGS as a % of Net Sales Profit before tax as a % of Net Sales Net Profit Margin Gross Profit Margin Operating Profit Margin Return on Assets Return on Equity Admin.1 9.084.346.623.431 115.5 2.0 72.5 8 5.9 2.7 2.264.0 9.988.3 3.240.3 0.267 1. of Days Inventory in Stock Accounts Receivable Turnover Average Collection Period Fixed Assets Turnover Operating Fixed Assets Turnover Total Assets Turnover Times Days Times Days Times Times Times 2.891 75.022 68. Times Rs.735 406.6 3.3 24.6 2.662 115.9 27.104 856.1 7. Exp.676 1.313.30 295 3. % % Rs.062 355.124 73.7 1.834 1.0 33.909 95.478 84.920 276.912) 39.922 72.270.4 9.448 1.1 11 5.2 4.2 1.7 1.978 9.166.3 5.3 40.974 383.2 9.9 124 30.6 8.483.124 66.87 23.116.50 3.797.7 1.342 668.107. 000 Rs.8 13.9 32. 000 % % % 1.824 4.72 276 2.9 65.163.776 984.3 64. Exp.915 940.619.087 1.871 2.917) (89.8 0.4 24.9 46.801 1.8 16.6 137 47.326) 709 779 829 847 846 789 Note: Previous year's figures have been restated in accordance with the audited financial statements.035 115.8 3.1 17.612 70.9 24.146 500.448 1.612 59.002 792.4 229.3 0.81 35.114. Times Rs.8 22.909 668.624) (155.896.2 -20.425 1.834 (27.3 20.6 2.083) 198.116.3 39.4 0.984.996 96.603 854.6 10.596 1.428.1 2.861 1.055 1.9 1.4 12.996 702.4 382.0 12.5 10.053 1.5 2.8 11.195 18.028 229. 120 2.Operating & Financial Highlights 84 2003 2004 2005 2006 2007 (Restated) 2008 Ratio Analysis Liquidity Ratios Current Ratio Quick Ratio Net Working Capital Net Assets Current Assets / Total Assets Inventory / Current Assets Inventory / Total Assets Times Times Rs.229 38.339 1.3 3.844 1.365) (42.6 8. Dist.3 11.157 51.8 0.776) 1.5 9.778) (540.0 12 3.483.6 56.445.114.4 2.6 75.147 1.125 446.141 63.0 1.818.448 571.008 12.923 857.044) (306.878 115.9 19.134.7 69.7 29.39 9.0 1.800 Market Value Market Value Per Share Market / Book Ratio Earnings Per Share (before tax) Earnings Per Share (after tax) Price Earning Ratio Dividend Per Share Dividend Yield Payout Ratio (after tax) Market Capitalisation Break-up Value Rs.271) (870.3 9.0 37.369 1.874) (230.820 8.9 8 5.10 2.725 180.3 7.90 232 3.4 9.4 66.00 5.28 16.5 27.36 28.3 2.8 73.357 57.694 2.2 36.4 2.845 97.4 10.342 352.302 42.619.516.601 1.116.6 0.478 140.823 171.395 597.292 3.2 3.2 2.3 13 4.141 15.842 1.279 2.1 5.437 186.8 4.2 1.3 1.568 227.9 0.774 1.372 (143.0 41.673 57.4 4.195.9 1.997 815.448 844.503 534.6 30.149 154.166./Net Sales Admin.413 (132.958 1.589 (259.400 1.676 2.2 42.1 1.7 17.844 382.500 627.3 29.448 404.5 8.9 68.915 413.7 0.7 98 46. .5 23.528 1.0 12.107 1.4 85 2003 2004 2005 2006 2007 (Restated) 2008 (Rupees in thousand) FINANCIAL POSITION Balance Sheet Fixed assets Other non-current assets Current assets Non-current assets classified as available for sale Total assets Ordinary share capital Reserves Total equity Non-current liabilities Current liabilities Total liabilities Total equity and liabilities 446.7 35.448 1.929 2.75 3.660 (155.3 8.002 96.0 0.6 1.6 2.500 1.839) (70. M Rs.0 12.4 0.017.4 19.757 871.77 716.9 42.8 67.4 2.336 212.5 6.40 0.7 9. & Mktg.1 7.769.1 1.8 8.0 0.269 13.484 244.9 125 27.357 187.497 1.4 20.001 15.128) (378.746 1.060 234.5 0.5 Leverage Debt to Equity Ratio Interest Earned Fixed Assets to Equity Financial Leverage Times Times Times Times 1.9 30.448 3.355 96.8 30.5 Net current assets / (liabilities) OPERATING AND FINANCIAL TRENDS Profit and loss Net sales Gross profit Operating profit Profit before tax Profit after tax Ordinary cash dividend Capital expenditure Cash flows Operating activities Investing activities Financing activities Cash and cash equivalents at the end of the year NUMBER OF EMPLOYEES Number of permanent employees at year end 27.7 38.52 211 1.2 29.743 2.6 6.226.984.1 6.4 0.3 70.365 38.97 53. Note: Previous year's figures have been restated in accordance with the audited financial statements.717 62.116.020.686 1.480) (141.269 940.9 1.470 3. Rs.5 12 6.9 1.854 96.028 500.6 34.64 10.592 28.76 25.393 (486.6 17.055. Increase Financial Charges / Net Income % % % % % % % % % % % 14.54 10.04 7.2 -1.70 2. Dist.717 70.869 153. & Mktg.40 1.9 6.5 413.1 1.54 252 2.
Instrument appointing proxy must be deposited at the Registered Office of the Company at least 48 hours before the time of the Meeting. by passing the following resolution as an ordinary resolution: Debt to Equity 100 55 24 39 22 33 44 Price Earning Ratio 55 50 45 76 78 53. Exp.5 1. 2009 at 10:00 hours in the Conference Hall of the Overseas Investors Chamber of Commerce and Industry.10% Notice of Meeting 87 Notice is hereby given that the forty first Annual General Meeting of the Company will be held on Wednesday.20% 1.3 10. Chartered Accountants. dated 26 January 2000 issued by the Securities and Exchange Commission of Pakistan.” 05 06 07 03 04 05 06 07 08 03 04 08 Sales Growth 15 12 Percentage 9 6 3 0 14 12 10 8 11 Market Share Price 300 250 200 Rupees 150 100 2 232 295 252 6. To approve the disposal of the Company’s manufacturing site including plant & machinery and all other assets located at WAH Cantt.1 10.40 (14%) per share.” 211 120 By Order of the Board 50 Karachi: 4th March. 25th March.0 1. 2009 and to fix their remuneration. To approve and declare dividend on the ordinary shares of the Company. as part of restructuring plan. 3. To receive and adopt the Balance Sheet and Profit & Loss Account for the year ended December 31. Ford Rhodes Sidat Hyder & Co. Wah Cantt. SPECIAL BUSINESS: 5.6 1. CDC Account Holders will further have to follow the guidelines as laid down in Circular No. Note: Previous year's figures have been restated in accordance with the audited financial statements. . 75.4 60 45 61 40 20 0 “RESOLVED that the Company is hereby authorized to dispose the manufacturing site including plant & machinery and all other assets. 2008.2 1. The Share Transfer Books of the Company shall remain closed from March 12. & Admin. as Auditors for the year ending December 31.00% Cost of Sales Finance Cost Taxation Dist.8 0.19 of 2004 and if deemed fit pass the following resolution as a special resolution: 276 “RESOLVED that the Company is hereby authorized to place its quarterly accounts on its website instead of sending the same to members by post. have offered themselves for re-appointment.4 ORDINARY BUSINESS: 1.4 1. 3 03 04 05 06 07 08 0 03 04 05 06 07 08 4. Karachi to transact the following business: Current Ratio 1.70% 20. 4. The Directors have recommended a cash dividend of Rs. The Audit Committee and Board of Directors have also recommended appointment of M/s.5 9. Mkt.30% 0. 2009 (both days inclusive). To confirm the minutes of the last Annual General Meeting held on March 19.6 0. 2.0 03 04 05 06 07 08 3.0 0. No person shall act as a proxy (except for a Corporation) unless he is entitled to be present and vote in his own right. located at G. M/s. Chartered Accountants being eligible..7 35.2 1. Shareholders whose shares are deposited with Central Depository Company (CDC) are requested to bring their original Computerized National Identity Card and account number in the CDC for verification.T Road.3 1.2 80 Percentage 67 56 40 35 Times 30 25 20 15 10 5 0 7. 2009. 2008 together with the Directors’ and Auditors’ reports thereon. Ford Rhodes Sidat Hyder & Co. 2009 to March 25. A member entitled to attend and vote at the above meeting may appoint a Proxy to attend and vote on his behalf. To consider the recommendation of the Board of Directors for transmission of quarterly accounts through Compay’s website in compliance with Section 245 of the Companies Ordinance. Talpur Road.70% 2. Retained Profit Dividend 0. To appoint Auditors’ for the year ending December 31. 2009 03 04 05 06 07 08 0 03 04 05 06 07 08 Muhammad Irfan Company Secretary Notes: Average Collection Period 15 12 12 9 Days 6 3 0 11 13 Return on Equity 40 12 35 30 Percentage 25 20 37 31 1. as allowed by the Securities & Exchange Commission of Pakistan (SECP) vide its circular No. The present auditors.0 Times 1.3 1.Operating & Financial Highlights 86 Application of Revenue 2008 0.19 of 2004.1. 1984 and Securities & Exchange Commission of Pakistan (SECP) vide its circular No.1.4 0.. 30 8 8 20 15 10 5 7 2.
Rs. A member entitled to attend a General Meeting is entitled to appoint a proxy to attend and vote instead of him/her. considering the high turnover of the Company's liquid products. Moreover. CDC Account Holders are requested to strictly follow the guidelines mentioned in Circular No. Account No.N. permitted that the placement of such quarterly accounts on their websites by the listed companies shall be treated as compliance of Section 245 of the Ordinance. The SECP.Wednesday. If the member is corporation it's common seal should be affixed to the instrument. 2009 and at any adjournment thereof. benchmarking with GMP standards and as part of rationalization program. together with the Board of Directors' resolution/Power of Attorney (if any) under which it is signed or a notarially certified copy thereof.2 Name Address C.N. 4. The instrument appointing a proxy should be signed by the member or by his attorney duly authorized in writing.Notice of Meeting 88 Statement under Section 160 (1) (b) of the Companies Ordinance. In respect of item 5 of the agenda Approval of the shareholders will be sought for the disposal of WAH manufacturing site together with the plant & machinery and all other assets located therein. This new state of the art manufacturing facility will not only automate the manufacturing of the liquid products but will also increase production efficiencies by reducing cost of production via economies of scale and lesser man-power cost. 19 of 2004 dated April 14. No. In order to improve the manufacturing facility. 1984 This statement sets out the material facts concerning the special business to be transacted at the forty first Annual General Meeting of sanofi-aventis Pakistan limited to be held on March 25. (Name in Block Letters) .I. In respect of item 6 of the agenda Section 245 of the Companies Ordinance. The instrument appointing a proxy. increase in the production capacity of the liquid manufacturing facility is also expected to add value to the Company's top line. Pakistan limited hereby appoint of (full address) or failing him of (full address) as my / our proxy to attend and vote for me / us and on my / our behalf at the 41st Annual General Meeting of the company to be held on Wednesday. should be deposited at the Registered Office not less than 48 hours before the time for holding the meeting. Participant ID No. vide its Circular No.at Karachi. who is not a member of the Company except that a Corporation may appoint a person who is not a member. 2004. which is progressing as per plan and is expected to start commercial production in the second quarter of the year 2010. 3. no person shall act as a proxy. 1984 (the Ordinance) provides that every listed company shall transmit to its members the accounts of each quarter.I. PROXY FORM I/We of (full address) being a member of sanofi-aventis As witness my / our hand this day of 2009. 2009 . investment on new liquid manufacturing facility at Karachi site was initiated. March 25.1 Name Address C. Folio No. No. Further. the company has initiated a project for divestment of its WAH site and shifting its entire production facility to one site . in CDS Important 1. proceeds from the divestment of WAH site shall reduce the borrowings and consequent borrowings costs of the Company to earn better returns for the shareholders as a whole.5/Revenue Stamp Signature of Member(s) Witness No. Accordingly.C.1 of 2000 of SECP.C. 2. Witness No.
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