Annual Report 2015

About the Cover
On our cover this year, we delve

into the social, economic and
environmental implications of
sustainability. To us, sustainability is a
product of well thought decisions and
responsible actions – that represent
building blocks for creating sound
economic value and giving back to
the communities we are a part of.
Now with another year drawing to a

close, we reiterate our commitment to
build a sustainable future – one that
stands on our promise of increased
efficiency, balanced growth and
healthier ecosystems for all.
ANNUAL REPORT OF PACKAGES LIMITED 2015
Table of Contents
02 Company Profile
06 Company Information
08 Organogram
09 Management Team
10 Nature of Business
13 Entity Rating
14 Board of Directors
16 Management Committees
18 Vision
19 Mission Statement
20 Policies
22 Core Values
23 Code of Conduct
24 Decade at a Glance
26 Horizontal and Vertical Analysis
30 Value Added and its Distribution
31 Sources and Application of Funds
32 Corporate Social Responsibility 124 Directors’ Report on the Consolidated
35 Corporate Calendar Financial Statements
126 ‫مجموعی مالیاتی حسابات پر ڈائریکٹرز کی رپورٹ‬
36 Notice of Annual General Meeting
40 Directors’ Report to the Shareholders 127 Auditors’ Report to the Members on the
Consolidated Financial Statements
49 ‫ڈائریکٹرز کی رپورٹ برائے شیرئ ہولڈرز‬
128 Consolidated Financial Statements
52 Shareholders’ Information
201 Video Conference Facility
60 Statement of Compliance with the Code of Corporate
Governance 203 ‫وڈیو کانفرنس کی سہولت‬
62 Review Report on Statement of Compliance with 205 Electronic Transmission Consent
Best Practices of Code of Corporate Governance 207 ‫اظہار رضا مندی بابت ترسیل برق روی‬
63 Auditors’ Report to the Members 209 Form of Proxy
65 Financial Statements 211 ‫تشکیل نیابت داری‬
1
Company Profile
Historical Overview Packages Limited was established in
1957 as a joint venture between the
tissues. The “Rose Petal” brand name
was launched with facial tissues and
Packages Limited is Pakistan’s leading Ali Group of Pakistan and Akerlund & was later expanded to include toilet
packaging solution provider. Our job Rausing of Sweden, to convert paper paper, kitchen roll, and table napkins.
is to deliver high quality packaging and paperboard into packaging for
in the most efficient, profitable and consumer industry. Over the years, In 1986, the Company established a
sustainable way. We are primarily a Packages has continued to enhance flexible packaging unit to cater to the
business to business company and its facilities to meet the growing increasing demand from consumers
our customer base includes some demand of packaging products. for sophisticated packaging used
of the world’s best-known branded primarily in the food industry.
consumer products companies across In 1968, with IFC participation,
industries. Packages integrated upstream by In 1993, a joint venture agreement
establishing a Pulp and Paper Mill was signed with Mitsubishi
We are also a leading manufacturer of with a capacity of 24,000 tons per year Corporation of Japan for the
tissue paper products. Our leadership based on waste paper and agricultural manufacture of Polypropylene films
position in tissue products is a by-products i.e. wheat straw and at the Industrial Estate in Hattar,
result of our ability to offer products river grass. With growing demand the Khyber Pakhtunkhwa. This project,
manufactured under highest capacity was increased periodically Tri-Pack Films Limited, commenced
standards of hygiene and quality to and in January 2003, total capacity production in June 1995 with equity
meet the household and cleanliness was nearly 100,000 tons per year. participation by Packages Limited,
needs of our consumers. We provide Mitsubishi Corporation, Al-Tawfeek
a complete range of tissue paper In 1982, Packages modified a paper Company for Investment Funds, Saudi
products that are convenient, quick machine to produce tissue paper in Arabia and general public. Packages
and easy to use. response to growing awareness and Limited owns 33.33 % of Tri-Pack Films
demand for hygienic and disposable Limited’s equity.
2
In July, 1994, Coates Lorilleux Pakistan During 1999-2000, Packages Board Machine PM-6 along-with high
Limited (currently DIC Pakistan successfully completed the expansion yield straw pulping & OCC plants
Limited), in which Packages Limited of the flexible packaging line by and its back processes such as 11
has 54.98 % ownership, commenced installing a new rotogravure printing MW Power House, Gas Turbine and
production and sale of printing inks. machine and enhancing the carton Primary Effluent Treatment Plant
line by putting up a new Lemanic were capitalised and commercial
During the same year, the Company rotogravure inline printing and operations were commenced
initiated the capacity expansion of its cutting creasing machine. In addition, during the year 2007. Second phase
Paper and Board Mill to 65,000 tons a new 8 color Flexographic printing comprising of Writing and Printing
per year and conversion capacity to machine was also installed in the Paper Machine PM-7, De-inking Pulp
56,000 tons per year. At the same flexible packaging line in 2001. Plant, 41MW Power House, Steam
time, the Company also upgraded Turbine and Secondary Effluent
the quality of Packages’ products Packages commenced production Treatment Plant was completed in the
and substantially improved pollution of corrugated boxes from its plant in year 2009.
control to meet the World Bank Karachi in 2002.
environmental guidelines. The said In 2008, the Company embarked
expansion was completed in 1998 at a In 2005, the Company embarked upon capacity expansion in its tissue
cost of PKR 2.7 billion. upon its Paper & Board expansion division through installation of a new
plan at a new site ‘Bulleh Shah Paper tissue paper manufacturing machine
In 1996, Packages entered into a joint Mill (currently Bulleh Shah Packaging PM-9 with production capacity of
venture agreement with Printcare (Private) Limited), almost tripling 33,000 tons per annum. With this
(Ceylon) Limited for the production its capacity from 100,000 tons per capacity expansion, the Company is
of flexible packaging materials in Sri annum to 300,000 tons per annum. now in a position to take benefit from
Lanka. The project, Packages Lanka Capacity expansion at Bulleh Shah export potential of tissue products in
(Private) Limited, in which Packages Paper Mill was completed in two the international market, particularly
Limited has 79.07 % ownership, phases. In the first phase, Brown the Middle East.
commenced production in 1998.
3
During 2011, a lamination machine Flexible Packaging Business with a (Private) Limited. The joint venture
was installed in the flexible total estimated project cost of PKR partner, Stora Enso OYJ Group,
department at a cost of PKR 96 326 million as part of the Company’s is actively involved in providing
million. This was Pakistan’s first efforts to remain abreast of improved technical expertise to further
high speed solvent-less automatic technological developments in the enhance the Paper & Paperboard and
lamination machine. It has turret Packaging business. In the same Corrugated business operations.
winders for automatic reel and a year, to enable continuous growth
capacity of 450 meters per minute. and technical development in During 2014, the Company invested
the Paper & Paperboard segment, in a new Offset Printing Line in
The rebuild project of Paper Machine Packages signed a 50/50 Joint continuation of its efforts to remain
PM-6, installed at Bulleh Shah Venture agreement with Stora Enso abreast of improved technological
Paper Mill, was completed in the OYJ Group of Finland in its 100% developments in the Packaging
second quarter of 2011 leading to wholly owned subsidiary, Bulleh business. The new Offset Printing
capacity expansion of 30,000 tons. Shah Packaging (Private) Limited. Line commenced its commercial
The machine started commercial The Joint Venture included Paper & operations during the first quarter
operations with enhanced capability Paperboard and Corrugated business of 2014 and had made available
of producing high value added liquid operations at Kasur and Karachi. The additional capacity to meet growing
packaging and bleached board. Joint Venture Agreement with Stora customer demands in the Folding
Moreover, the Corrugator Machine in Enso OYJ Group, signed in 2012, was Carton business.
Kasur Plant was upgraded in 2011 to implemented in 2013 and Packages
improve efficiency, reliability, enhance completed the transfer of assets As part of its asset and income
capacity and reduce waste. This and related obligations of Paper & diversification strategy, the Company,
upgrade activity resulted in increased Paperboard and Corrugated business in May 2014 initiated development
capacity of 14%. operations to Bulleh Shah Packaging of a high quality retail mall at its
(Private) Limited along with cash Lahore land through its wholly owned
In 2012, the Company invested in equity injection. Packages now holds subsidiary, Packages Construction
a New Rotogravure Machine for its 65% equity in Bulleh Shah Packaging (Private) Limited.
Packages Limited
Subsidiaries Joint Venture Associates
Packages Packages Anemone Bulleh-Shah

DIC Pakistan Calcipack IGI Insurance Tri-Pack Films IGI Investment
Construction Lanka (Private) Holdings Limited Packaging (Private)
Limited (Private) Limited Limited Limited Bank Limited
(54.98%) (Private) Limited Limited (100%) Limited
(100%) (10.61%) (33.33%) (2.17%)
(99.99%) (79.07%) (65.00%)
Flexible
Packages
Convertors (Pty)
Limited
(55.00%)
4
Year 2015
In 2015, as a part of its continuing In line with strategy to diversify Further, during 2015, the Board
efforts towards technological and enter into new high of Directors resolved to start a
up gradation, the Company growth markets, in June 2015, 50/50 joint venture with Omya
invested in a new toilet roll line to the Company completed the Group of Switzerland. The joint
cater to the growing demand. A acquisition of 55% share in the venture will set up a production
new brand by the name of “Maxob” operation of a flexible packaging facility to supply a range of high
produced on this machine has company in South Africa. quality ground calcium carbonate
been launched during the year. products.
PIC
The Company’s development of a high quality retail

mall at its Lahore land is underway. The construction
of the mall is based on inputs from international retail
consultants.
5
Company Information
Board of Directors Auditors Head Office & Works

A.F. Ferguson & Co.
Towfiq Habib Chinoy Shahrah-e-Roomi
(Chairman) Chartered Accountants
P.O. Amer Sidhu
(Non-Executive Director)
Lahore - 54760, Pakistan
Syed Hyder Ali Legal Advisors PABX : (042) 35811541-46
(Chief Executive & Managing Director)
(Executive Director) Hassan & Hassan - Lahore Fax : (042) 35811195
Rizwan Ghani Orr, Dignam & Co. - Karachi

(General Manager) Offices
(Executive Director)
Shares Registrar Registered Office & Regional Sales Office
Jari Latvanen
(Non-Executive Director) FAMCO Associates (Pvt.) Ltd
4th Floor, The Forum
Josef Meinrad Mueller 8-F, Next to Hotel Faran
Suite No. 416 - 422, G-20, Block 9
(Non-Executive Director) Nursery, Block 6, P.E.C.H.S.
Khayaban-e-Jami, Clifton
Muhammad Aurangzeb Shahrah-e-Faisal
Karachi - 75600, Pakistan
(Independent Director) Karachi-75400
PABX : (021) 35874047-49
Shamim Ahmad Khan PABX : (021) 34380101
: (021) 35378650-51
(Non-Executive Director) : (021) 34380105
: (021) 35831618, 35833011
Syed Aslam Mehdi : (021) 34384621-3
Fax : (021) 35860251
(Non-Executive Director) Fax : (021) 34380106
Email : [email protected]
Syed Shahid Ali
Regional Sales Office
Tariq Iqbal Khan Bankers & Lenders 2nd Floor, G.D. Arcade
(Non-Executive Director) 73-E, Fazal-ul-Haq Road, Blue Area
Allied Bank Limited
Islamabad - 44000, Pakistan
Askari Bank Limited
Advisor Bank Alfalah Limited
PABX : (051) 2348307 - 9
: (051) 2806267
Syed Babar Ali Bank Al-Habib Limited
Fax : (051) 2348310
Deutsche Bank A.G.
Dubai Islamic Bank Pakistan Limited
Chief Financial Officer Habib Bank Limited Zonal Sales Offices
Khurram Raza Bakhtayari Habib Metropolitan Bank Limited
C-2, Hassan Arcade Nusrat Road
International Finance Corporation (IFC)
Multan Cantt. - 60000, Pakistan
Company Secretary JS Bank Limited
Tel. & Fax: (061) 4504553
MCB Bank Limited
Adi J. Cawasji Meezan Bank Limited
2nd Floor Sitara Tower
NIB Bank Limited
Bilal chowk, Civil Lines, Faisalabad
Rating Agency Samba Bank Limited
Pakistan
Soneri Bank Limited
PACRA Tel : (041) 2602415
Standard Chartered
Fax : (041) 2629415
Bank (Pakistan) Limited
Credit Rating The Bank of Punjab
The Bank of Tokyo - Web Presence
Long-term : AA
Mitsubishi UFJ, Limited www.packages.com.pk
Short-term : A1+
United Bank Limited
6
Packages Lanka (Private) Limited

Colombo, Sri Lanka
7
Organogram
BOARD OF DIRECTORS
CHIEF EXECUTIVE & MANAGING DIRECTOR
GENERAL CHIEF FINANCIAL HUMAN RESOURCE INDUSTRIAL PERFORMANCE

MANAGER OFFICER (ENVIRONMENT, HEALTH & SAFETY)
FINANCE INFORMATION
TECHNOLOGY
HEAD OF CONSUMER HEAD OF

PRODUCTS DIVISION PACKAGING DIVISION
FOLDING FLEXIBLE ROLL COVERS AND ADMINISTRATION

CARTONS PACKAGING MECHANICAL FABRICATION
8
Management Team
From Left to Right From Left to Right

(Sitting) (Standing)
Syeda Henna Babar Ali Numan Noor

(Advisor Tissue Division) (Business Unit Manager - Folding Cartons)
Asghar Abbas Ather Ayub Khan

(Head of Packaging Division) (Business Unit Manager - Roll Covers and
Mechanical Fabrication)
Syed Hyder Ali
(Chief Executive and Managing Director) Syed Asim Shamim
(Business Unit Manager - Flexible Packaging)
Rizwan Ghani
(General Manager) Shaheen Sadiq
(Head of Consumer Products Division)
Khurram Raza Bakhtayari
(Chief Financial Officer) Kaifee Siddiqui
(Head of Human Resource)
Sajjad Iftikhar
(Chief Investment Officer)
9
Nature of Business
in high value-added packaging for

industries like:
• Pharmaceutical
• Tobacco
• Personal care
• Confectionery
• Home care products
• Food (including frozen)
Flexible Packaging
To accommodate increasing demand
for sophisticated packaging, Packages
established a Flexible Packaging
business unit in 1986 at its Lahore
Plant. Flexible packaging business
provides a one stop packaging
solution by providing high quality
detailed graphics in Flexographic
and Rotogravure printing. Flexible
packaging business also provides
lamination for plastic films, aluminum
foil, paper, multi-layer blown film
extrusion for high speed technology
in multi-lane slitting, standalone
Packaging Division Folding Cartons business is equipped
with state of the art machinery and spout inserted bags, poly-bags,
Packages provides multi-dimensional a dedicated and qualified workforce zipper-bags, sleeves and ice cream-
and multi product packaging that is supported by strong value cones. As part of an environmental
solutions to its clients that are chain. These factors contribute friendly organization, Flexible
involved in manufacturing consumer in providing high volumes and packaging business unit is also
products across industries. consistent quality at a competitive working on 4 R’s of packaging i.e.
price for our esteemed customers. Reduce, Re-use, Recycle and Recover.
The Packaging Division comprises
of two business units based on Market Segment - As the Market Segment - Flexible Packaging
packaging material categories: consumer industry in Pakistan business unit not only provides cost
matures, competition in the market effective and perfect packaging
1. Folding Cartons has increased and the market solutions to our valuable customers.
2. Flexible Packaging has a greater focus on product It also offers them strong technical
differentiation through branding. support on products. We have great
in-house R&D facilities which help us
Folding Cartons In the first instance this is through
in keeping ourselves updated to the
attractive and unique packaging
With over 58 years of experience which is driving demand for our aggressive market needs. Flexible
in providing reliable service and products. Our team understands packaging business caters to a wide
quality, Folding Carton business well the needs of the market and range of customers across industries
provides a wide range of carton thus development work and packing including food, soaps & detergents,
board packaging products to various modifications are undertaken pharmaceuticals, pesticides and
industry segments. correspondingly. Folding Carton personal & home care.
business works to deliver the best
carton board products that result
10
Consumer Products Division to acquire numerous certifications

including:
Customer Services
Packages started commercial Department (CSD)
production of tissue and other - ISO 22000 : 2005 + PASS 223
Our Customer Services Department
consumer products in 1982 at the - ISO 14001 : 2004
(CSD) constantly monitors production
Lahore Plant. We currently provide a - ISO 18001 : 2007
and supply chain to ensure on-time
complete range of tissue and personal - SMETA
delivery to the customer to ensure
hygiene products that are convenient, - Halal (S.A.N.H.A)
that the right quality product reaches
quick and easy to use; ranging from the customer at the right time. CSD
facial tissues to tissue rolls, table Packaging Division is also certified for also performs core liaison function
napkins, pocket packs, kitchen URSA (Unilever Responsible Sourcing to arrange development activities as
towels, party packs, paper plates and Audit) and Forest Stewardship well as technical support and after
cups. We understand that tissue and Council (Chain of Custody) FSC sales support to customers. Customer
allied products are seen as a luxury CoC. The Company is heads on with complaints are followed by proper
item without the requisite attention implementation of Total Productive feedback and management reporting
being paid to the hygiene element. Maintenance (TPM) to achieve zero so that customers are always given
Packages has always attempted to downtimes, defects and accidents. the due attention they require.
develop the market for this business
segment through education of the Service Departments Pre-Press Department
population on the hygiene associated
Packages believes that its entire Pre-Press is the nerve center of
with the use of the products.
operations have to be in line with Packages Limited where concepts and
the needs of the customers. Our ideas are developed and woven with
Product development has always
operations are supported by excellent marketing strategies of customers to
been our focus based on the demands
service departments who consistently attract the end users of the products
and needs of our consumers. Great
strive to deliver what the customers produced by our customers.
effort is put into producing improved
need on timely basis.
and innovative products to make
life hygienic and comfortable for our
consumers.
Brands
Key brands of Consumer Products
Division are:
• Rose Petal
• Tulip
• Maxob
• Double Horse
Certifications
The disciplined, motivated and
hardworking team of Packages
Limited has never compromised on
the standards of work environment.
This positive professional attitude
has helped the business divisions
11
Nature of Business
The department has been

revolutionised over the last two
requirements on any printing
technique like Gravure, Flexography
Supply Management
decades and now follows the design and Offset without compromising the Supply Management function came
process completely in soft form; creative integrity of designs. into existence to provide one window
images and texts are simultaneously operation to the Business Units
directed from computers to: Research and Development encompassing material procurement,
logistics (for incoming materials
• Image setters;
(R&D) and outgoing finished goods),
• Plate making devices (CDI, Research & Development continues warehousing, miscellaneous services
Digital System for Flexo); and to be one of Packages’ unique and waste sales. In order to rationalise
• Digital engraving machines selling points. As the consumer the vendor base and to include
industry focuses on cost control, quality vendors, vendor development
In the Art and Camera Department, limiting carbon footprint and an has also become one of the integral
Packages has high-tech computer overall mindset of “more with less”, activities of the division.
systems where digital files are innovation is the name of the game.
produced instead of photographic
negatives. For achieving high quality The Research and Development
in all of printing methods (Roto, Flexo department at Packages is tirelessly
and Offset), Pre-Press department is working to understand consumer
equipped with the latest technology needs and providing innovations
in cylinder, photo polymer and plate on both design and structure based
making equipment which provides on global trends. The department
support to various production also plays a key role in supporting
departments. the customers in their cost control
initiatives as we see the growth of our
Pre-press converts the packaging customers business as our success.
design according to the technical
12
Entity Rating of Packages Limited
Long Term AA
Short Term A1+
Rated by: The Pakistan Credit Rating Agency Limited
Rating as on: June 2015
Rating Type Rating Comment

Long - Term AA (Double A) Very high credit rating.
AA Rating denote a very low expectation of credit
risk. This indicates very strong capacity for timely
payment of financial commitment. This capacity is not
significantly vulnerable to foreseeable events.
Short - Term
A1+(A One Plus) Obligations supported by the highest capacity for
timely repayment.
13
Board of Directors
MR. TOWFIQ HABIB CHINOY

Mr. Towfiq Habib Chinoy, Non-executive Director, has been associated with the Company as Chairman of the Board
of Directors since 2008. He is the Managing Director of International Steels Limited and holds chairmanship of
Jubilee General Insurance Company Limited and HBL Asset Management Limited. He also holds directorship of IGI
Investment Bank Limited. He is also the Chairman of the Board of Governors of Indus Valley School of Arts and
Architecture and Trustee of Mohatta Palace Gallery Trust and Habib University Foundation.
SYED HYDER ALI

Syed Hyder Ali joined Packages Limited in July 1987 and presently holds the position of Managing Director of
the Company. He has done his Masters in Sciences from Institute of Paper Chemistry and has also served as Mill
Manager of Paper and Paperboard operations of the Company. He holds directorship in several other companies
including IGI Insurance Limited, IGI Life Insurance Limited, International Steels Limited, Nestle Pakistan Limited,
Packages Construction (Private) Limited, Packages Lanka (Private) Limited, Sanofi-Aventis Pakistan Limited, Tri-
Pack Films Limited, Tetra Pak Pakistan Limited, Bulleh Shah Packaging (Private) Limited, KSB Pumps Company
Limited and Flexible Packages Convertors (Proprietary) Limited, South Africa. He is also serving on the board of
several philanthropic, educational, charitable and business support organizations including Pakistan Centre for
Philanthropy, National Management Foundation, Packages Foundation, Syed Maratib Ali Religious and Charitable
Trust Society, Babar Ali Foundation and World Wide Fund for Nature. He is also board member of Ali Institute of
Education, International Chamber of Commerce and Lahore University of Management Sciences.
MR. RIZWAN GHANI

Mr. Rizwan Ghani joined the Company in 1982 and currently holds the position of Director and General Manager of
the Company. He has a post graduate diploma in Business Studies from United Kingdom and has served as Managing
Director of Packages Lanka (Private) Limited. Currently, he holds directorship of Packages Lanka (Private) Limited and
Anemone Holdings Limited, Mauritius and is serving on the Board of Trustees of Packages Foundation.
MR. JARI LATVANEN

Mr. Jari Latvanen is associated with the Company as a Non-executive Director. He is a strategic leader and food
industry specialist. He has got a solid track record in the food industry and is currently leading innovative and
interactive organizations focusing on active consumer based marketing. He brings with him unique understanding
of consumers and retailers from working with strong brands in the food industry. He has held various leadership
positions within Nestlé i.e. Managing Director - Nestlé Czech Republic and Slovakia, Assistant Vice President - Zone
Europe Nestlé, HQ Switzerland and Managing Director - Nestlé Sweden, Marketing Director - Nestlé Nordics. He has
been Chief Executive Officer of Findus Nordic from 2010 to 2014. In year 2013, he was awarded with the prestigious
Swedish Food Prize 2013 for managing the infamous horse meat scandal and acting as a whistle blower. He has also
been awarded with White Guide Award and Taste Developer of the Year 2013.
MR. JOSEF MEINRAD MUELLER

Mr. Josef Meinrad Mueller is associated with the Company as a Non-executive Director. He was born in Switzerland
where he obtained his education including an MBA from IMD (formerly IMEDE) in Lausanne where he also served
as an Executive-in-Residence. He has over 36 years of senior international management experience at the Nestle
Group in developed and emerging markets. He is familiar with Pakistan where he served as Managing Director of
Nestle Pakistan Limited during 1992-1995. Throughout his international career, he was entrusted with several senior
leadership positions in different countries, including his important role as CEO and Chairman of Nestle in the Greater
China Region. Following his retirement from the Nestle Group, Mr. Mueller continues to remain very active in the
international business world as an independent business advisor.
14
MR. MUHAMMAD AURANGZEB

Mr. Muhammad Aurangzeb is an Independent Director of the Company and has over 27 years of banking
experience. He has served as Non-executive Director of RBS Berhad and was also a member of the Risk Management,
Remuneration and Nominating Committee, all of which are sub-committees of the board. He has also served on
Boards of various business schools, Aga Khan Foundation and ABN AMRO Foundation. Presently, he is Executive Vice
President Morgan Chase for whole of Asia.
MR. SHAMIM AHMAD KHAN

Mr. Shamim Ahmad Khan is associated with the Company as Non-executive Director. He has served various
government organizations in different capacities namely Securities and Exchange Commission of Pakistan and
Ministry of Commerce. He has also been engaged with consultancy assignments for Asian Development Bank
and other organizations. Currently, he holds directorship of Abbott Laboratories Pakistan Limited, Attock Refinery
Limited, IGI Insurance Limited, IGI Life Insurance Limited and Karandaaz (Pvt) Limited. He is also a member of the
Advisory Committee of Center for International Private Enterprise Pakistan, Board of Governors of Sustainable
Development Policy Institute and is serving on the Board of Trustees of Packages Foundation.
SYED ASLAM MEHDI

Syed Aslam Mehdi, Non-executive Director, has a Masters degree in Business Administration from Institute of
Business Administration, Karachi and has been associated with the Group companies in various capacities over the
years. He also served as the General Manager of the Company from September 2008 to September 2014. Currently,
he is the Managing Director of Bulleh Shah Packaging (Private) Limited and holds directorship of DIC Pakistan
Limited, Packages Construction (Private) Limited, Tri-Pack Films Limited, Tetra Pak Pakistan Limited and Printcare PLC,
Sri Lanka. He is also the member of the Board of Governors of the National Management Foundation and is serving
on the Board of Trustees of Packages Foundation.
SYED SHAHID ALI

Syed Shahid Ali is currently associated with the Company as Non-executive Director. He also holds directorship of
several other companies including Treet Corporation Limited, Treet Assets (Private) Limited, Treet Power Limited,
Loads Limited, IGI Insurance Limited, Ali Automobiles Limited, First Treet Manufacturing Modaraba, Global Econo
Trade (Private) Limited, Multiple Auto Parts Industries (Private) Limited, Specialised Autoparts Industries (Private)
Limited and Specialised Motorcycles (Private) Limited. He is also actively involved in social and cultural activities
and holds senior positions on the governing boards of several hospitals and philanthropic organizations including
Liaquat National Hospital.
MR. TARIQ IQBAL KHAN

Mr. Tariq Iqbal Khan is associated with the Company as a Non-executive Director. He is a Fellow member of the Institute
of Chartered Accountants of Pakistan, with diversified experience of more than 40 years. He has held leading policy-
making positions in various associations and institutions in the country, including being a Founding Director and
President of Islamabad Stock Exchange, Commissioner and Acting Chairman Securities and Exchange Commission
of Pakistan and Managing Director/Chairman at Investment Corporation of Pakistan/National Investment Trust. He
is currently a member on the Board of Gillette Pakistan Limited, International Steels Limited, Lucky Cement Limited,
National Refinery Limited, Silk Bank Limited, Pakistan Oilfields Limited and FFC Energy Limited.
15
Management Committees
Executive Committee Audit Committee The terms of reference of the Audit

Committee also include the following:
Syed Hyder Ali Chairman Tariq Iqbal Khan Chairman
a) Determination of appropriate
(Executive Director) (Non-Executive Director)
measures to safeguard the
Rizwan Ghani Member Muhammad Aurangzeb Member Company’s assets;
(Executive Director) (Independent Director)
b) Review of quarterly, half-yearly
Shamim Ahmad Khan Member and annual financial statements
Executive Committee is involved in (Non-Executive Director)
of the Company, prior to their
day to day operations of the Company
Syed Aslam Mehdi Member approval by the Board of
and is authorised to conduct every
(Non-Executive Director) Directors, focusing on:
business except the businesses
to be carried out by the Board of Syed Shahid Ali Member • Major judgmental areas;
Directors as required by section 196 • Significant adjustments
of the Companies Ordinance, 1984. Adi J. Cawasji Secretary resulting from the audit;
The Executive Committee meets (Company Secretary)
• The going-concern
periodically to review operating
assumption;
performance of the Company against The terms of reference of the Audit
pre-defined objectives, commercial Committee is derived from the Code • Any changes in accounting
business decisions and investment and of Corporate Governance applicable to policies and practices;
funding requirements. The Executive listed companies in Pakistan. The Audit • Compliance with applicable
Committee is also responsible for Committee is, among other things, accounting standards;
formulation of business strategy, responsible for recommending to the
• Compliance with listing
review of risks and their mitigation Board of Directors the appointment
regulations and other
plan. of external auditors by the Company’s
shareholders and considering any statutory and regulatory
questions of resignation or removal requirements ; and
of external auditors, audit fees and
• Significant related party
provision by external auditors of any
transactions
service to the Company in addition to
audit of its financial statements. In the c) Review of preliminary
absence of strong grounds to proceed announcements of results prior to
otherwise, the Board of Directors act in publication;
accordance with the recommendations d) Facilitating the external audit and
of the Audit Committee in all these discussion with external auditors
matters. of major observations arising from
16
interim and final audits and any

matter that the auditors may wish
Human Resource and System and Technology
to highlight (in the absence of Remuneration (HR & R) Committee
management, where necessary); Committee Rizwan Ghani Chairman
e) Review of management letter
(Executive Director)
issued by external auditors and Towfiq Habib Chinoy Chairman
management’s response thereto; (Non-Executive Director) Khurram Raza Bakhtayar Member
(Chief Financial Officer)
f ) Ensuring coordination between Syed Hyder Ali Member
the internal and external auditors (Executive Director) Suleman Javed Member
(Manager ERP)
of the Company; Shamim Ahmad Khan Member
g) Review of the scope and extent
of internal audit and ensuring Syed Aslam Mehdi Member This Committee is responsible for:
that the internal audit function (Non-Executive Director)
has adequate resources and is a) Devising the I.T strategy within
Mr. Tariq Iqbal Khan Member
appropriately placed within the the organization to keep all
Company; information systems of the
Mr. Kaifee Siddiqui Secretary Company updated in a fast
h) Consideration of major findings of (Head of Human Resource)
changing environment. This
internal investigations of activities
characterised by fraud, corruption committee is also responsible for
and abuse of power and This Committee is responsible for: evaluating Enterprise Resource
management’s response there to; Planning (ERP) solutions and data
a) Recommending human resource archiving solutions to achieve
i) Ascertaining that the internal management policies to the Company’s overall goal towards
control systems including
Board; Green Office Project;
financial and operational controls,
accounting systems for timely b) Recommending to the Board b) Reviewing and recommending
and appropriate recording of the selection, evaluation, information technology proposals
purchases and sales, receipts and compensation (including suggested by management;
payments, assets and liabilities retirement benefits) and
c) Promoting awareness of all
and the reporting structure are succession planning of the CEO;
stakeholders on needs for
adequate and effective;
c) Recommending to the Board investment in technology and
j) Review of the Company’s the selection, evaluation, related research work; and
statement on internal control compensation (including
d) Reviewing and assessing
systems prior to endorsement by retirements benefits) of GM, CFO,
the Board of Directors and internal Company’s systems and
Company Secretary and Head of
audit reports; procedures, recommending
Internal Audit; and
proposals on technological
k) Instituting special projects, d) Consideration and approval on innovations including plant
value for money studies or recommendations of CEO on such up-gradation, technology
other investigations on any
matters for key management improvements etc. with relevant
matter specified by the Board of
positions who report directly to cost benefit analysis.
Directors, in consultation with
CEO or GM.
the Chief Executive Officer and to
consider remittance of any matter
to the external auditors or to any
other external body;
l) Determination of compliance with
relevant statutory requirements;
m) Monitoring compliance with
the best practices of corporate
governance and identification of
significant violations thereof; and
n) Consideration of any other issue
or matter as may be assigned by
the Board of Directors
17
Vision
Position ourselves to be a regional player of quality packaging and
consumer products.
Improve on contemporary measures including cost, quality, service,

speed of delivery and mobilization.
Keep investing in technology, systems and human resource to

effectively meet the challenges every new dawn brings.
Develop relationships with all our stakeholders based on

sustainable cooperation, upholding ethical values, which the
shareholders, management and employees represent and
continuously strive for.
18
Mission Statement
To be a leader in the markets we serve by providing quality products
and superior service to our customers, while learning from their
feedback to set even higher standards for our products.
To be a Company that continuously enhances its superior technological

competence to provide innovative solutions to customer needs.
To be a Company that attracts and retains outstanding people by

creating a culture that fosters openness, and innovation, promotes
individual growth and rewards initiative and performance.
To be a Company which combines its people, technology, management

systems and market opportunities to achieve profitable growth while
providing fair returns to its investors.
To be a Company that endeavors to set the highest standards in

corporate ethics in serving the society.
19
Policies
Integrated Management
System (IMS) Policy
We intend to be a world class
Company that not only delivers
quality goods & services but also
takes care of its employees’ health,
safety & environment as a whole.
We are committed to achieving this

by:
1. Complying with all applicable

laws and regulatory
requirements;
2. Setting objectives and targets

for reviewing and improving
management systems;
3. Developing an effective
IMS system to prevent
incidents/accidents, ill health,
pollution, waste, hazards and
environmental impacts;
4. Ensuring that all food related

packaging material is produced,
stored and delivered in safe
and hygienic condition as per
relevant requirements;
5. Continually improving
our Environment, Health
& Safety (EHS) and food
safety management system
effectiveness;
6. Creating a safe and work friendly

environment for all stakeholders;
and
7. Implementing individual
accountability to comply with
IMS requirements
This policy is applicable to each

individual whether employee,
contractor / sub-contractor, supplier,
visitor and all other stakeholders of
the Company.
20
Quality Policy Total Productive Maintenance Whistle blowing Policy

Packages Limited is strongly (TPM) Policy We are committed to high standards
committed to produce quality We believe that TPM provides the of ethical, moral and legal business
products that conform to consumer’s life cycle approach of improving the conduct. In line with our commitment
requirements at a competitive price. overall performance of the machine / to open communication, this
equipment through: policy aims to provide an avenue
We shall continually improve our for employees to raise concerns
Quality Management System (QMS) • Improving productivity by highly and reassurance that they will
and quality performance of all motivated staff / workers be protected from reprisals or
business processes. victimization for whistle blowing.
• Satisfying the customers needs
We shall set quality objectives at by delivering the right quantity This whistle blowing policy is
all levels and allocate appropriate at right time with desired quality. intended to protect the staff if they
resources to achieve them. raise concerns such as:
We are committed to following
We shall ensure all employees are well the TPM principles to enhance our • Incorrect financial reporting;
aware of company quality policy and competitive position in the market
and hence financial position by • Unlawful activity;
are motivated to apply it in their areas
of responsibility. achieving: • Activities that are not in line with
Packages’ policy, including the
• Zero accidents; Code of Conduct; or
• Zero breakdowns; and • Activities which otherwise
• Zero defects amount to serious improper
conduct.
21
Core Values
Underlying everything we do and

everything we believe in is a set of
individual; we realise this encourages
innovation and develops character.
Conservation
core values. These guide us to deal We expect and encourage our
with every aspect of any issue we All employees have the right employees to actively participate in
might encounter in our personal and to a stress and injury free work community service and to take care
professional lives. These values help environment. We ensure our of the environment entrusted to us as
us grow inside & outside, personally employee health and safety by citizens sharing the earth’s resources.
and as an organization. providing various in-house facilities
such as a gym and making sure that Customer Satisfaction
Good Governance all staff understand and uphold our
We are customer-driven; we go the
safety policy. All our employees
We are committed to running our extra mile to make sure our clients’
are permitted and encouraged to
business successfully and efficiently, expectations are met and exceeded
afford time and attention to personal
providing long term benefits to our on every issue. We partner with
concerns.
employees and shareholders, and leading companies to arm ourselves
enriching the lives of those whom with the latest technology and
we serve by fulfilling our corporate Our People provide customers with innovative
responsibility to the best of our The success of any organization is solutions in the most cost-effective
ability. We expect excellence from largely dependent on the people manner available.
all processes, whether they relate working for it. Each member of our
to policy formation and accounting team is considered equally important Ethical Behavior
procedures or product development and provided constant training,
We make it clear that being a sincere,
and customer service. motivation and guidance. We possess
honest and decent human being
a dedicated staff of the highest caliber
takes precedence over everything
committed to making our business
else. In the Packages family, there
Work Environment a success. We ensure that every
is an all-round respect for elders,
Our policies and core values are employee has the opportunity for
tolerance for equals and affection for
aimed towards creating an informal maximum professional development.
youngsters. Managers are expected
yet stimulating team-oriented work To achieve this goal, we seek to
to lead from the front, train junior
environment with a culture of sharing provide challenging work prospects
colleagues through delegation,
and open communication. We cherish for all employees. Each person is
resolve conflicts quickly, be visible at
the diversity of viewpoint of every compensated and rewarded for his or
all times and act as role models for
her performance and hard work on a
others.
strict merit basis.
22
Code of Conduct
Packages Limited has built a reputation

for conducting its business with
General Principles Every employee is expected to adhere
to, and firmly inculcate in his / her
integrity , in accordance with high Compliance with the law, regulations, everyday conduct, this mandatory
standards of ethical behavior and statutory provisions, ethical integrity framework; any contravention
in compliance with the laws and and fairness is a constant commitment or deviation will be regarded
regulations that govern our business. and duty of all packages employees as misconduct and may attract
This reputation is among our most and characterises the conduct of the disciplinary action in accordance
valuable assets and ultimately depends organisation. with the Company service rules and
upon the individual actions of each of relevant laws.
our employees all over the country. The Company’ s business and
Packages Limited code of conduct has

activities have to be carried out in a
transparent, honest and fair way, in
Statement of Ethical Practices
been prepared to assist each of us in good faith and in full compliance. Any It is the basic principle of Packages
our efforts to not only maintain but form of discrimination, corruption, Limited to obey the law of the land
enhance this reputation. It provides forced or child labor is rejected. and comply with its legal system.
guidance for business conduct in a Particular attention is paid to the Accordingly every director and
number of areas and references to acknowledgment and safeguarding of employee of the company shall obey
more detailed corporate policies for the dignity, freedom and equality of the law. Any director and employee
further direction. human beings. guilty of violation will be liable to
disciplinary consequences because of
The adherence of all employees to All employees, without any distinction the violation of his / her duties.
high standards of integrity and ethical or exception whatsoever, respect
behavior is mandatory and benefits all the principles and contents of the Employees must avoid conflicts of
stakeholders viz. our customers, our Code in their actions and behaviors interest between their private financial
communities, our shareholders and while performing their functions activities and conduct of Company
ourselves. according to their responsibilities, business.
because compliance with the Code is
The Company carefully checks fundamental for the quality of their All business transactions on behalf of
for compliance with the Code by working and professional performance. Packages Limited must be reflected
providing suitable information, Relationships among employees, at accordingly in the accounts of the
prevention and control tools all levels, must be characterised by Company. The image and reputation of
and ensuring transparency in all honesty, fairness, cooperation, loyalty Packages Limited is determined by the
transactions and behaviors by taking and mutual respect. way each and every one of us acts and
creative measures if and when conducts himself / herself at all times.
required. The belief that one is acting in favor or
to the advantage of the Company can We are an equal opportunity employer.
Packages Limited Code of Conduct never, in any way, justify – not even in Our employees are entitled to a safe
applies to all affiliates, employees and part – any behavior that conflicts with and healthy workplace.
others who act for us countrywide, the principles and content of the Code.
within all sectors, regions, areas and Every manager and supervisor shall
functions. The Code aims at guiding the be responsible to see that there is
“Packages team” with respect to no violation of laws within his / her
standards of conduct expected in area of responsibility which proper
areas where improper activities could supervision could have prevented.
result in adverse consequences to The manager and supervisor shall still
the company, harm its reputation or be responsible if he / she delegates
diminish its competitive advantage. particular tasks.
23
Decade at a Glance
(Rupees in Million) 2015 2014 2013
Assets Employed:
Fixed Assets at Cost 10,036 9,835 9,744
Accumulated Depreciation / Amortisation 6,055 5,973 5,956
Net Fixed Assets 3,981 3,861 3,788
Other Non-Current Assets 45,037 47,445 41,122
Current Assets 7,918 8,548 8,359
Current Liabilities 4,904 5,130 5,331
Net Current and Other Non-Current Assets 48,051 50,864 44,150
Assets of Disposal Group - - -
Net Assets Employed 52,031 54,725 47,938
Financed By:
Paid up Capital 884 864 844
Reserves 45,593 47,567 39,640
Preference Shares / Convertible stock reserve 1,310 1,572 1,606
Shareholder’s Equity 47,786 50,003 42,090
Deferred Liabilities 488 467 654
Long Term Finances 3,757 4,255 5,195
Total Non-Current Liabilities 4,245 4,722 5,848
Liabilities of Disposal Group - - -
Total Funds Invested 52,031 54,725 47,938
Invoiced Sales - Gross 18,711 17,627 17,314*

Materials Consumed 9,005 9,131 9,131*
Cost of Goods Sold 12,664 12,873 12,893*
Gross Profit 3,361 2,215 1,995*
Employees Remuneration 1,732 1,521 1,363*
Profit / (loss) from Operations 1,828 947 997*
Profit / (loss) before Tax 3,803 2,750 2,194*
Profit / (loss) after Tax 3,295 2,536 1,796*
EBITDA (from operations) 2,497 1,383 1,268*
Key Ratios:
Profitability
Gross Profit Ratio (%) 20.98 14.68 13.40*
Profit before Tax (%) 23.73 18.22 14.74*
EBITDA Margin to Sales (%) 15.58 9.16 8.51*
Total Assets Turnover Ratio 0.28 0.25 0.28*
Fixed Assets Turnover Ratio 4.27 4.18 4.35*
Liquidity
Current Ratio 1.61 1.67 1.57
Quick Ratio 1.15 1.13 1.07
Gearing
Debt : Equity Ratio 8:92 8:92 11:89
Return on Equity (%) 6.90 5.07 4.27*
Investment
Basic EPS (Rs.) 37.42 29.89 21.28*
Diluted EPS (Rs.) 33.62 26.59 20.01*
Price - Earning Ratio 15.56 22.70 12.81*
Interest Cover Ratio 7.08 4.67 3.61*
Dividend Yield (%) 2.58 1.32 2.93
Dividend Cover Ratio 2.46 3.23 2.66*
Cash Dividend % 150.00 90.00 80.00
Stock Dividend % - - -
Break-up Value per Ordinary share (Rs.) 519.99 554.26 479.78
Market Value per Ordinary Share - Year End (Rs.) 582.11 678.29 272.63
Cash Dividend per Share 15.00 9.00 8.00

* Represents continuing operation
** Excluding effect of capital gain and reversal of impairment / (impairment loss) on available for sale financial assets, if any
24
2012 2011 2010 2009 2008 2007 2006
9,275 28,472 27,749 26,887 25,789 23,691 18,217

5,749 10,057 9,101 7,605 6,323 5,502 4,984
3,526 18,415 18,649 19,282 19,466 18,189 13,233
20,893 16,402 12,442 8,347 8,645 10,413 6,026
7,030 8,841 8,534 7,979 6,923 4,837 3,414
4,482 3,442 2,421 1,743 5,617 1,965 2,312
23,441 21,800 18,555 14,583 9,952 13,285 7,128
14,543 - - - - - -
41,510 40,215 37,204 33,865 29,418 31,473 20,361
844 844 844 844 844 734 699

28,173 26,666 24,480 20,967 15,429 17,437 12,974
1,606 1,606 1,606 1,606 - - -
30,623 29,115 26,930 23,417 16,273 18,171 13,673
748 2,525 2,317 2,478 841 956 688
4,471 8,575 7,956 7,971 12,304 12,347 6,000
5,219 11,100 10,274 10,448 13,145 13,302 6,688
5,669 - - - - - -
41,510 40,215 37,204 33,865 29,418 31,473 20,361
13,871* 13,797* 21,837 16,533 14,301 10,540 9,028

7,407* 7,282* 10,211 8,685 7,639 5,108 4,247
10,270* 10,071* 17,733 13,736 11,281 7,829 6,552
1,475* 1,315* 803 307 943 1,199 1,295
1,018* 912* 1,502 1,229 1,033 835 758
** 1,011* ** 872* (104) ** (384) 405 588 758
2,378* 1,037* (317) 5,770 (308) 4,633 6,348
1,488* 161* (332) 4,064 (196) 4,326 6,101
1,103* 896* 1,242 719 955 1,167 1,098
12.56* 11.55* 4.33 2.19 7.72 13.28 16.50

20.25* 9.11* (1.71) 41.08 (2.52) 51.31 80.90
9.40* 7.87* 6.70 5.12 7.81 12.93 14.00
0.37* 0.26* 0.47 0.39 0.35 0.27 0.35
3.75* 0.62* 1.04 0.73 1.08 0.87 2.54
1.57 2.57 3.52 4.58 1.23 2.46 1.48

1.03 0.96 1.57 1.72 0.43 0.97 0.55
15:85 24:76 23:77 25:75 44:56 40:60 30:70

** 4.85* ** 0.55* (1.23) ** (13.05) (1.20) ** 4.39 **14.80
17.64* 1.90* (3.94) 48.16 (2.32) 58.96 87.30

17.09* 1.90* (3.94) 44.72 (2.32) - -
8.57* 43.43* (32.65) 2.99 (34.98) 6.17 2.41
5.52* 3.16* 0.74 5.55 0.81 13.84 92.93
2.98 1.81 2.53 2.26 - - 2.86
3.92* 1.27* (1.21) 14.82 - - 14.55
45.00 15.00 32.50 32.50 - - 60.00
- - - - - 15.00 5.00
343.89 326.02 300.12 258.49 192.85 247.65 195.66
151.16 82.72 128.61 144.00 81.19 363.80 210.00
4.50 1.50 3.25 3.25 - - 6.00
25
Horizontal & Vertical Analysis
Balance Sheet
HORIZONTAL ANALYSIS
(Rupees in Million )
2015 15 vs 14 2014 14 vs 13 2013 13 vs 12 2012 12 vs 11 2011 11 vs 10 2010
Re-stated Re-stated
Equity & Liabilities Rs. % Rs. % Rs. % Rs. % Rs. % Rs.
Share Capital & Reserves

Issued, subscribed and paid up capital 884 2.34 864 2.35 844 - 844 - 844 - 844
Reserves 41,878 (6.45) 44,766 17.64 38,054 22.46 31,075 10.28 28,179 16.35 24,219
Preference shares / convertible stock reserve 1,310 (16.65) 1,572 (2.14) 1,606 - 1,606 - 1,606 - 1,606
Unappropriated profit / (loss) 3,715 32.64 2,801 76.60 1,586 (154.65) (2,902) 91.80 (1,513) (679.69) 261
Non-Current Liabilities
Long term finances 3,729 (11.81) 4,229 (18.20) 5,170 15.63 4,471 (47.86) 8,575 7.77 7,957
Deferred tax 246 (15.95) 293 (42.92) 513 60.31 320 (83.64) 1,956 (9.78) 2,168
Liabilities against assets subject to finance lease 28 7.66 26 7.02 24 100.00 - - - - -
Retirement benefits 40 100.00 - (100.00) 1 (99.81) 307 (24.57) 407 243,612.57 0.17
Deferred liabilities 202 15.46 175 24.70 140 15.70 121 (25.31) 162 8.72 149
Current Liabilities
Current portion of long-term liabilities 392 91.64 205 0.34 204 (79.60) 1,000 162.47 381 2,621.43 14
Finances under mark up arrangements - secured 884 (29.95) 1,263 (16.83) 1,518 87.64 809 1.63 796 464.54 141
Derivative financial instruments - - - (100.00) 27 (83.64) 165 100.00 - - -
Trade and other payables 3,278 4.24 3,145 3.04 3,052 54.38 1,977 14.21 1,731 (3.51) 1,794
Accrued finance cost 349 (32.52) 518 (2.33) 530 - 530 (0.75) 534 13.14 472
Liabilities directly associated with non-current
assets classified as held-for-sale - - - - - (100.00) 5,669 100.00 - - -
Total 56,936 (4.88) 59,854 12.36 53,269 15.82 45,992 5.35 43,658 10.18 39,625
VERTICAL ANALYSIS
2015 2014 2013 2012 2011 2010
Re-stated Re-stated
Equity & Liabilities Rs. % Rs. % Rs. % Rs. % Rs. % Rs. %
Share Capital & Reserves

Issued, subscribed and paid up capital 884 1.55 864 1.44 844 1.58 844 1.84 844 1.93 844 2.13
Reserves 41,878 73.55 44,766 74.79 38,054 71.44 31,075 67.57 28,179 64.54 24,219 61.12
Preference shares / convertible stock reserve 1,310 2.30 1,572 2.63 1,606 3.01 1,606 3.49 1,606 3.68 1,606 4.05
Unappropriated profit / (loss) 3,715 6.52 2,801 4.68 1,586 2.98 (2,902) (6.31) (1,513) (3.47) 261 0.66

Non-Current Liabilities
Long term finances 3,729 6.55 4,229 7.07 5,170 9.71 4,471 9.72 8,575 19.64 7,957 20.08
Deferred tax 246 0.43 293 0.49 513 0.96 320 0.70 1,956 4.48 2,168 5.47
Liabilities against assets subject to finance lease 28 0.05 26 0.04 24 0.05 - - - - - -
Retirement benefits 40 0.07 - - 1 0.00 307 0.67 407 0.93 0.17 0.00
Deferred liabilities 202 0.35 175 0.29 140 0.26 121 0.26 162 0.37 149 0.38

Current Liabilities
Current portion of long-term liabilities 392 0.69 205 0.34 204 0.38 1,000 2.17 381 0.87 14 0.04
Finances under mark up arrangements - secured 884 1.55 1,263 2.11 1,518 2.85 809 1.76 796 1.82 141 0.36
Derivative financial instruments - - - - 27 0.05 165 0.36 - - - -
Trade and other payables 3,278 5.76 3,145 5.25 3,052 5.73 1,977 4.30 1,731 3.96 1,794 4.53
Accrued finance cost 349 0.61 518 0.86 530 0.99 530 1.15 534 1.22 472 1.19
Liabilities directly associated with non-current
assets classified as held-for-sale - - - - - - 5,669 12.33 - - - -
Total 56,936 100.00 59,854 100.00 53,269 100.00 45,992 100.00 43,658 100.00 39,625 100.00
Equity and Liabilities (Rupees in Million)

84% 7% 9%
2015 47,787 4,245 4,904
83% 8% 9%
2014 50,002 4,722 5,130
79% 11% 10%
2013 42,090 5,848 5,331
67% 11% 22%
2012 30,623 5,219 10,150
67% 25% 8%
2011 29,116 11,100 3,442
68% 26% 6%
2010 26,930 10,274 2,421
0 10,000 20,000 30,000 40,000 50,000 60,000
Share Capital & Reserves Non-Current Liabilities Current Liabilities
26
HORIZONTAL ANALYSIS
2015 15 vs 14 2014 14 vs 13 2013 13 vs 12 2012 12 vs 11 2011 11 vs 10 2010
Re-stated Re-stated
Assets Rs. % Rs. % Rs. % Rs. % Rs. % Rs.
Non-current assets
Property, plant and equipment 3,804 3.21 3,686 0.57 3,665 5.96 3,459 (81.15) 18,346 (1.45) 18,615
Intangible assets 21 (45.45) 37 15.63 32 (21.95) 41 5.13 39 1,850.00 2
Investment property 155 12.63 138 51.65 91 250.00 26 (13.33) 30 (6.25) 32
Investments 44,998 (4.88) 47,304 15.24 41,048 97.38 20,796 27.68 16,288 33.30 12,219
Long term loans and deposits 39 (25.95) 53 (20.90) 67 (30.93) 97 (12.61) 111 (13.95) 129
Retirement benefits - (100.00) 88 1,366.67 6 100.00 - (100.00) 3 (96.84) 95
Current Assets
Stores and spares 488 (1.00) 493 (13.36) 569 23.16 462 (52.81) 979 (6.76) 1,050
Stock-in-trade 1,780 (20.21) 2,231 8.04 2,065 8.12 1,910 (57.80) 4,526 23.36 3,669
Trade debts 1,781 16.64 1,527 (5.91) 1,623 (28.82) 2,280 29.25 1,764 7.36 1,643
Loans, advances, deposits, prepayments
and other receivables 1,346 (25.09) 1,797 6.27 1,691 309.44 413 (9.23) 455 71.70 265
Income tax receivable 2,421 7.70 2,248 3.31 2,176 35.75 1,603 70.35 941 22.85 766
Cash and bank balances 102 (59.63) 252 6.78 236 (34.81) 362 105.68 176 (84.56) 1,140
Non-current assets classified as held-for-sale - - - - - (100.00) 14,543 100.00 - - -
Total 56,936 (4.88) 59,854 12.36 53,269 15.82 45,992 5.35 43,658 10.18 39,625
VERTICAL ANALYSIS
2015 2014 2013 2012 2011 2010
Re-stated Re-stated
Assets Rs. % Rs. % Rs. % Rs. % Rs. % Rs. %
Non-current assets
Property, plant and equipment 3,804 6.68 3,686 6.16 3,665 6.88 3,459 7.52 18,346 42.02 18,615 46.97
Intangible assets 21 0.04 37 0.06 32 0.06 41 0.09 39 0.09 2 0.01
Investment property 155 0.27 138 0.23 91 0.17 26 0.06 30 0.07 32 0.08
Investments 44,998 79.03 47,304 79.03 41,048 77.06 20,796 45.22 16,288 37.31 12,219 30.84
Long term loans and deposits 39 0.07 53 0.09 67 0.13 97 0.21 111 0.25 129 0.33
Retirement benefits - - 88 0.15 6 0.01 - - 3 0.01 95 0.24

Current Assets
Stores and spares 488 0.86 493 0.82 569 1.07 462 1.00 979 2.24 1,050 2.65
Stock-in-trade 1,780 3.13 2,231 3.73 2,065 3.88 1,910 4.15 4,526 10.37 3,669 9.26
Trade debts 1,781 3.13 1,527 2.55 1,623 3.05 2,280 4.96 1,764 4.04 1,643 4.15
Loans, advances, deposits, prepayments
and other receivables 1,346 2.36 1,797 3.00 1,691 3.17 413 0.90 455 1.04 265 0.67
Income tax receivable 2,421 4.25 2,248 3.76 2,176 4.08 1,603 3.49 941 2.16 766 1.93
Cash and bank balances 102 0.18 252 0.42 236 0.44 362 0.79 176 0.40 1,140 2.88
Non-current assets classified as held-for-sale - - - - - - 14,543 31.62 - - - -
Total 56,936 100 59,854 100 53,269 100 45,992 100 43,658 100 39,625 100
Assets (Rupees in Million)

7% 79% 14%
2015 3,981 45,037 7,918
7% 79% 14%
2014 3,861 47,445 8,548
7% 77% 16%
2013 3,788 41,121 8,360
8% 45% 47%
2012 3,526 20,893 21,573
42% 38% 20%
2011 18,415 16,402 8,841
47% 31% 22%
2010 18,649 12,442 8,534
0 10,000 20,000 30,000 40,000 50,000 60,000

Operating Fixed Assets Other Non - Current Assets Current Assets
27
Horizontal & Vertical Analysis
Profit and Loss Account
HORIZONTAL ANALYSIS
2015 15 vs 14 2014 14 vs 13 2013 13 vs 12 2012 12 vs 11 2011 11 vs 10 2010
Re-stated Re-stated
Rs. % Rs. % Rs. % Rs. % Rs. % Rs.
Continuing operations
Local sales 18,683 6.26 17,582 1.95 17,245 24.89 13,808 0.62 13,723 (33.38) 20,598
Export sales 28 (37.70) 45 (34.12) 69 9.52 63 (14.86) 74 (94.03) 1,239
Gross sales 18,711 6.15 17,627 1.81 17,314 24.82 13,871 0.54 13,797 (36.82) 21,837
Sales tax and excise duty (2,657) 5.63 (2,516) 4.60 (2,405) 13.98 (2,110) (11.83) (2,393) (26.75) (3,267)
Commission (29) 18.91 (24) 16.49 (21) 31.25 (16) (11.11) (18) (47.06) (34)
Net sales 16,025 6.21 15,087 1.34 14,888 26.76 11,745 3.15 11,386 (38.57) 18,536
Cost of sales (12,664) (1.63) (12,873) (0.16) (12,893) 25.54 (10,270) 1.98 (10,071) (43.21) (17,733)
Gross profit 3,361 51.79 2,215 11.00 1,995 35.25 1,475 12.17 1,315 63.76 803
Administrative expenses (753) (4.38) (787) 33.89 (588) 82.61 (322) 12.20 (287) (43.84) (511)
Distribution and marketing costs (678) 16.87 (580) (1.01) (586) 46.50 (400) 3.63 (386) (33.33) (579)
Project expenditure - - - - - - - (100.00) (56) 1,300.00 (4)
Other operating expenses (347) 56.38 (222) 44.14 (154) 396.77 (31) 675.00 (4) (73.33) (15)
Other operating income 244 (24.25) 322 (2.08) 329 13.84 289 (0.34) 290 43.56 202
Profit / (loss) from operations 1,828 92.91 947 (4.88) 996 (1.48) 1,011 15.94 872 (938.46) (104)
Finance costs (643) (14.44) (752) (11.06) (845) 60.04 (528) 9.09 (484) (60.00) (1,210)
Investment income 2,618 2.51 2,554 25.00 2,043 33.18 1,534 47.50 1,040 4.31 997
Reversal of impairment / (impairment) on investments - - - - - (100.00) 361 (192.33) (391) 100.00 -
Profit / (loss) before tax 3,803 38.30 2,750 25.32 2,194 (7.74) 2,378 129.32 1,037 (427.13) (317)
Tax (507) 137.83 (213) (46.43) (398) (55.28) (890) 1.60 (876) 5,740.00 (15)
Profit / (loss) for the year from Continuing operations 3,295 29.93 2,536 41.22 1,796 20.70 1,488 824.22 161 (148.49) (332)
Loss for the year from Discontinued operations - - - - (249) 93.66 (3,929) (127.24) (1,729) (100.00) -
Profit / (loss) for the year 3,295 29.93 2,536 63.95 1,547 163.38 (2,441) (55.68) (1,568) (372.29) (332)
Basic earnings / (loss) per share
- From Continuing operations 37.42 29.89 21.28 17.64 1.90
- From Discontinued operations - - (2.95) (46.56) (20.48)
- From profit / (loss) for the year 37.42 29.89 18.33 (28.92) (18.58) 3.94
Diluted earnings / (loss) per share


The financial information is based upon audited financial results of the company of respective periods unless represented in accordance with applicable financial reporting framework.
28
VERTICAL ANALYSIS
2015 2014 2013 2012 2011 2010
Re-stated Re-stated
Rs. % Rs. % Rs. % Rs. % Rs. % Rs. %
Continuing operations
Local sales 18,683 99.85 17,582 99.74 17,245 99.60 13,808 99.55 13,723 99.46 20,598 94.33
Export sales 28 0.15 45 0.26 69 0.40 63 0.45 74 0.54 1,239 5.67
Gross sales 18,711 100.00 17,627 100.00 17,314 100.00 13,871 100.00 13,797 100.00 21,837 100.00
Sales tax and excise duty (2,657) (14.20) (2,516) (14.27) (2,405) (13.89) (2,110) (15.21) (2,393) (17.34) (3,267) (14.96)
Commission (29) (0.16) (24) (0.14) (21) (0.12) (16) (0.12) (18) (0.13) (34) (0.16)
Net sales 16,025 85.64 15,087 85.59 14,888 85.99 11,745 84.67 11,386 82.53 18,536 84.88
Cost of sales (12,664) (67.68) (12,873) (73.03) (12,893) (74.47) (10,270) (74.04) (10,071) (72.99) (17,733) (81.21)
Gross profit 3,361 17.96 2,215 12.56 1,995 11.52 1,475 10.63 1,315 9.53 803 3.68
Administrative expenses (753) (4.02) (787) (4.47) (588) (3.40) (322) (2.32) (287) (2.08) (511) (2.34)
Distribution and marketing costs (678) (3.62) (580) (3.29) (586) (3.38) (400) (2.88) (386) (2.80) (579) (2.65)
Project expenditure - - - - - - - - (56) (0.41) (4) (0.02)
Other operating expenses (347) (1.86) (222) (1.26) (154) (0.89) (31) (0.22) (4) (0.03) (15) (0.07)
Other operating income 244 1.30 322 1.83 329 1.90 289 2.08 290 2.10 202 0.93
Profit / (loss) from operations 1,828 9.77 947 5.37 996 5.75 1,011 7.29 872 6.32 (104) (0.48)
Finance costs (643) (3.44) (752) (4.26) (845) (4.88) (528) (3.81) (484) (3.51) (1,210) (5.54)
Investment income 2,618 13.99 2,554 14.49 2,043 11.80 1,534 11.06 1,040 7.54 997 4.57
Reversal of impairment / (impairment) on investments - - - - - - 361 2.60 (391) (2.83) - -*
Profit / (loss) before tax 3,803 20.32 2,750 15.60 2,194 12.67 2,378 17.14 1,037 7.52 (317) (1.45)
Tax (507) (2.71) (213) (1.21) (398) (2.30) (890) (6.42) (876) (6.35) (15) (0.07)
Profit / (loss) for the year from Continuing operations 3,295 17.61 2,536 14.39 1,796 10.37 1,488 10.73 161 1.17 (332) (1.52)
Loss for the year from Discontinued operations - - - - (249) - (3,929) - (1,729) - -
Profit / (loss) for the year 3,295 17.61 2,536 14.39 1,547 8.93 (2,441) (17.60) (1,568) (11.36) (332) (1.52)
Basic earnings/ (loss) per share
Diluted earnings / (loss) per share


The financial information is based upon audited financial results of the company of respective periods unless represented in accordance with applicable financial reporting framework.
Profit and Loss - Breakup of Major Expenses as % of Sales

2015 49% 5% 2% 12% 8% 5%
2014 52% 5% 2% 14% 8% 6%
2013* 53% 5% 3% 13% 7% 6%
2012* 53% 7% 3% 11% 5% 4%
2011* 53% 5% 2% 12% 5% 4%
2010 47% 14% 7% 14% 5% 6%
0 10 20 30 40 50 60 70 80 90 100
Materials Consumed Fuel & Power Depreciation & Amortisation
Cost of Sales (Other Components) Selling & Administrative Expenses Financial Costs & Other Charges *Represents Continuing Operations only
29
Value Added and Its Distribution
The statement below shows value added by the operations of the Company and its distribution to the stakeholders

(Rupees in thousand) 2015 2014 2013

Wealth Generated
Sales 18,711,298 17,627,358 20,712,895
Dividend Income 2,617,891 2,553,678 2,043,111
Other Income 244,022 322,147 380,164
21,573,211 100% 20,503,183 100% 23,136,170 100%
Wealth Distributed
Bought-in-materials & Services 14,358,651 67% 14,481,180 71% 17,439,557 75%
To Employees
Remuneration, benefits and facilities 1,732,494 8% 1,520,773 7% 1,632,963 7%
To Government
Income Tax, Sales Tax, Custom & Excise Duties, Workers’
Funds, EOBI & Social Security Contribution,
Professional & Local Taxes 1,448,365 7% 1,159,540 6% 1,405,733 6%

To Providers of Capital
Cash dividend to the ordinary shareholders 1,340,693 6% 786,416 4% 675,036 3%
Finance Costs 643,032 3% 751,551 4% 1,090,129 5%
Retained for Reinvestment & Future Growth / (Utilized

from reserves) 2,049,976 9% 1,803,723 8% 892,752 4%
21,573,211 100% 20,503,183 100% 23,136,170 100%
Wealth Generated & Wealth Generated &

Distribution - 2015 (Percentage) Distribution - 2014 (Percentage)
8% 7%
6%
7%
4%
6%
4%
3%
8%
9%
67% 71%
Bought-in-materials & services Bought-in-materials & services

Retained for re-investment & future growth Retained for reinvestment & future growth
Finance cost Finance cost
Shareholders Shareholders
Government Government
Employees Employees
30
Sources and Application of Funds
Over the last six years

(Rupees in thousand) 2015 2014 2013 2012 2011 2010
Cash flow from operating activities

Cash generated from / (used in) operations 3,182,034 1,432,406 2,530,095 395,637 (810,780) 2,048,790
Finance costs paid (811,384) (764,241) (1,090,306) (1,509,395) (1,423,001) (988,292)
Taxes paid (686,226) (535,873) (548,880) (758,677) (431,528) (490,263)
Payments for accumulating compensated absences (23,533) (17,079) (81,855) (28,670) (10,524) (16,805)
Retirement benefits paid (15,329) (13,450) (320,767) (73,960) (62,831) (50,488)
Net cash generated from / (used in) operating activities 1,645,562 101,763 488,287 (1,975,065) (2,738,664) 502,942

Cash flow from investing activities
Fixed capital expenditure (713,480) (629,738) (824,797) (1,234,627) (1,225,371) (633,758)
Investment - net (2,437,175) (600,000) (2,274,953) 4 3,035 50,968
Net decrease in long-term loans and deposits 13,311 14,448 11,499 13,768 17,556 11,148
Proceeds from disposal of property, plant and equipment 91,023 106,792 69,982 113,764 190,023 25,034
Proceeds from assets written off due to fire - - 102,003 233,463 384,563 -
Dividends received 2,617,891 2,553,678 2,043,111 1,534,440 1,037,255 946,292
Net cash (used in) / generated from investing activities (428,430) 1,445,180 (873,155) 660,812 407,061 399,684

Cash flow from financing activities
Re-payment of long-term finances - secured (200,000) (600,000) (1,100,000) (5,485,714) (14,286) -
Proceeds from long-term finances - - 1,000,000 2,000,000 1,000,000 -
Liabilities against assets subject to finance lease - net (7,038) (3,599) 27,884 - - -
Dividend paid (782,731) (671,684) (378,218) (126,044) (273,574) (272,938)
Net cash (used in) / generated from financing activities (989,769) (1,275,283) (450,334) (3,611,758) 712,140 (272,938)

Net increase / (decrease) in cash and cash equivalents 227,363 271,660 (835,202) (4,926,011) (1,619,463) 629,688
Cash and cash equivalents at the beginning of the year (1,010,104) (1,281,764) (5,546,562) (620,551) 998,912 369,224
Cash and cash equivalents transferred to joint venture - - 5,100,000 - - -
Cash and cash equivalents at the end of the year (782,741) (1,010,104) (1,281,764) (5,546,562) (620,551) 998,912
Operating Activities Investing Activities Financing Activities

(Rupees in Million) (Rupees in Million) (Rupees in Million)
2,000 1,500 1,445 1,000

1,646 712
1,500 500
1,200
1,000 0
503 488 900
(273)
500 661 -500
(450)
102
600
0 -1,000
400 407 (990)
-500 300 -1,500 (1,275)
-1,000 -2,000
0
-1,500 -2,500
-300
-2,000 (1,975) -3,000
(428)
-600
-2,500 -3,500
(3,612)
(2,739)
-3,000 -900 (873) -4,000
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
31
Corporate Social Responsibility
Packages Limited recognises the importance of being a good corporate citizen in the conduct
of its business as well as fulfilling its corporate and social obligations. We have always
acknowledged our social responsibility to the health and well-being of the communities in which
we operate. We are committed to the principle of ‘giving back to the society’.
Our commitment to our stakeholders and the community are exemplified through our Corporate
Social Responsibility (CSR) activities.
Environment We have phased out Chloro Fluoro

Carbons (CFCs) according to Montreal
conventional lights with energy
efficient & environment friendly
We are a member of the global Protocol and have been consistently lights is an ongoing process as is
network of green offices project of reducing the consumption of Hydro installation of solar panels. Lux
the World Wide Fund for Nature, and Chloro Fluoro Carbons (HCFCs) by Monitoring and Motion Sensors are
the first company in Pakistan to be replacing them with approved gases also being installed in phases to
awarded Green Office diploma in the to curtail our contribution to the reduce energy cost. Lux sensors are
manufacturing sector. Green Office greenhouse effect. being used to measure the amount
is an environmental service for / by of available daylight and adjust the
offices. With its help, work places are We routinely conduct energy light levels accordingly to reduce
able to reduce their burden on the audits to identify projects that can unnecessary energy consumption by
environment, achieve savings and efficiently use, reduce or recycle utilising natural light resources while
slow down environmental changes. energy. Replacement of factory’s ensuring appropriate light levels are
maintained.
32
Through these activities, we

demonstrate our commitment
to the community to protect the
environment.
Health and Safety

Ensuring the protection of the health
and well-being of our employees,
customers and the communities
in which we operate is an ongoing
process and has always been one of
our chief concerns.
Our main procedures in safety include

comprehensive risk assessment and
controls, permit to work, log out tag
out, near miss reporting, incident
reporting, emergency response, and stored and transported by adopting employment, sponsoring various
compliance evaluation procedures. All and implementing the hygiene events, promoting culture, arts and
newly hired employees go through standards and controls. We have also awareness campaigns.
safety orientation programs and sign acquired ‘Halal Certification’ from
an affidavit of their awareness. We South African National Halal Authority Community Welfare Schemes
routinely conduct trainings, both (S.A.N.H.A).
In our 58 years as a corporate
internal and external, regarding citizen, we have consistently and
occupational health and safety, We are also making progress in our
consciously tried to make a difference
dengue prevention, road safety, focus areas of behavior based safety
in the society by our corporate
safe removal of waste, first aid and and controlling risks with engineering
giving, assistance in community
fire safety. In 2015, amongst other as well as administrative controls and
development and supporting groups;
trainings, an EHS awareness theater thus minimising the risk of injuries
aiming for a progressive social change
production was carried out for our and accidents.
and the up-lift of the community at
employees to create awareness about large. During the year, we formed
the importance of environment and Society ‘Packages Foundation’ through which
health related issues through a candid We firmly believe that for an we have offered our contributions
and relatable platform. During the organisation to be successful and for and assistance to a number of
year, road safety violation tickets it to create value for its shareholders, hospitals and trusts and various non-
(within the factory) were introduced it must also create value for its society. profit organizations.
as well as area specific hazard and We consider it our responsibility to
control posters. make sustainable positive impact on Rose Festival
the communities in which we operate. Every spring more than three
We became certified for Food Safety Whether it’s through the grants we hundred types of roses welcome our
System Certification (FSSC). FSSC is provide to various organizations that esteemed guests to the ‘The Packages
part of the world’s fastest growing share our mission or through the Rose Festival’. The vividly decorated
Global Food Safety Initiative (GFSI) inspiring volunteer efforts, we are gardens are graced by the presence
certification program accredited passionate about helping people live of our customers, vendors, employees
by The Consumer Goods Forum. better. and guests from the local community.
Through this system, we ensure that
Another essential attraction in this
the packaging material and tissue we We strive to contribute to societal famous event is the spectacular
manufacture is procured, processed, welfare through providing display of different types of peacocks.
educational opportunities,
33
Promoting Traditional ‘Mela’ Human Capital Fair Price Shop

Culture Our people are our greatest asset. We We have established a fair price shop
We always look forward to arranging are committed to attracting, retaining for our employees to facilitate them
different events to promote and developing the highest quality in the purchase of their grocery items.
traditional activities within the and most dedicated work force. We We provide subsidy on purchase of
society. ‘Mela’ is one of such activities strive to hire and promote people pulses for the workers. Fair Price shop
which we have been organizing for on the basis of their qualifications, is also offering other general stores
the last many years. The objective of performance and abilities, and and clothing items on no profit no
this event is to provide traditional are determined to provide equal loss basis to employees.
entertainment to the family members opportunities to our employees and a
of our employees and the residents of work environment free of any form of Scholarships
our vicinity. More than 1,000 families discrimination. We offer merit scholarships to
participate in the event every year. the children of our employees to
Trainings appreciate their talent and promote
Sports Activities Employee training needs are healthy competition in the form of
“Health is the thing that makes periodically reviewed, and various monitory re-imbursements that vary
you feel that now is the best time in-house and customised training with the level of education.
of the year” – we at Packages programs are arranged as needed
believe that mental exertion must for production, marketing, human Hajj Facility
be balanced by physical activity; resource, supply management and Every year, Packages has the privilege
resultantly promotion of sports has finance personnel. to send 10 of its employees for
always played a vital role in our CSR Hajj through ballot. This includes
initiatives. To carry out all these sports During the year, the Company 7 employees from non-executive
activities, we have an in house sports has launched an online learning staff and 3 from executive and
complex. Some of the activities that management system. This system management staff. We bear all
aim to promote sports at grass root is designed to allow employees expenses of these employees
level within the country are: easy access to available internal pertaining to this religious offering.
and external trainings being
• Jaffar Memorial Inter School arranged by the management. The Long Service Awards
Hockey Tournament training calendar is published at
the beginning of the year so that Every year, as a token of appreciation
• Babar Ali Foundation Inter employees may plan their attendance for the continued association with
School Football Tournament in advance. us, we give awards to our employees
who achieve a significant milestone of
• Babar Ali Foundation Inter The Company also holds a service years.
School Hockey Tournament for recreational training at the end of
Girls each year primarily for sales team
and allied personnel from various
In addition, we offer sports facilities departments as a team building
for our employees as well. Every exercise and to freshen up the
year, inter-departmental tournament employees after the whole year’s hard
starts the sports year of Packages work.
and ends with the annual sports
day celebrations. These sports The objective of these programs
activities also provide a platform to is to develop human resource and
the employees to become part of provide personnel with the necessary
the Packages Sports Teams which technical and soft skills to enhance
represents the Company in different performance and prepare individuals
sports competitions. for higher roles and responsibilities.
34
Corporate Calendar
Major Events and Meetings Date
Audit Committee and BOD meetings to consider annual accounts of

the Company for the year ended December 31, 2014 February 25, 2015
Annual General Meeting of shareholders to consider annual accounts of

the Company for the year ended December 31, 2014 and dividend announcement April 16, 2015
Audit Committee and BOD meetings to consider quarterly accounts of

the Company for the quarter ended March 31, 2015 and to consider approval
to start 50/50 joint venture with Omya Group of Switzerland April 22, 2015
Completion of the acquisition of 55% shareholding of Flexible Packages

Convertors (Proprietary) Limited June 01, 2015
Audit Committee meeting to consider half yearly accounts of the Company for
the period ended June 30, 2015 August 19, 2015
BOD meeting to consider half yearly accounts of the Company for

the period ended June 30, 2015 August 20, 2015
Audit Committee and BOD meetings to consider quarterly accounts of

the Company for the period ended September 30, 2015 October 19, 2015
Incorporation of CalciPack (Private) Limited as a wholly-owned subsidiary

of Packages Limited November 13, 2015
BOD meeting to consider approval of investment in the right shares offered by

Tri-Pack Films Limited December 30, 2015
35
Notice of Annual General Meeting
Notice is hereby given that the 61st Annual General Meeting of Packages Limited will be held on
Monday, April 25, 2016 at 10.30 a.m. at the Beach Luxury Hotel, Moulvi Tamizuddin Khan Road,
Karachi to transact the following business:
1. To confirm the minutes of the Extraordinary General Meeting of the Company held on January 21, 2016;
2. To receive and adopt the Audited Accounts of the Company for the year ended December 31, 2015 together with the
Directors and Auditors Reports thereon;
3. To consider and approve the payment of cash dividend for the year ended December 31, 2015 as recommended by the
Board of Directors:

a) to the preference share/convertible stock holder (International Finance Corporation) at the rate of Rs. 19.00 (10%) per
preference share/convertible stock of Rs. 190 in terms of the Subscription Agreement between Packages Limited and
International Finance Corporation;

b) to the ordinary shareholders at the rate of Rs. 15.00 (150%) per ordinary share of Rs. 10; and
4. To appoint Auditors for the year 2016 and to fix their remuneration
By Order of the Board
Karachi Adi J. Cawasji

Company Secretary
February 25, 2016
36
Notes: 422, G-20, Block 9, Khayaban-e-

Jami, Clifton, Karachi-75600 at
into the Active Tax-payers List
(ATL) provided on the website of
1. Closure of Share Transfer least 48 hours before the time of
the Meeting.
FBR, despite the fact that they
are filers, are advised to make
Books sure that their names are entered
The Share Transfer Books of the 3. Notice to Shareholders into ATL, otherwise tax on their
cash dividend will be deducted
Company will remain closed from
April 18, 2016 to April 25, 2016
who have not provided @17.5% instead @12.5%.
(both days inclusive). Transfers their CNICs (ii) For any query/problem/
received in order at the office
As directed by the SECP through information, the investors may
of the Company’s Registrars,
Messrs FAMCO ASSOCIATES its Circular No.EMD/D-II/ contact the company and/or the
(PVT.) LIMITED, 8-F, Next to Hotel Misc/2009-1342 dated April 4, Share Registrar at the following
Faran, Nursery, Block 6, P.E.C.H.S., 2013, dividend warrants cannot phone numbers or email
Shahrah-e-Faisal, Karachi-75400 be issued without valid CNICs. addresses:-
by close of business on April 15, All shareholders holding physical
2016 will be treated in time for shares who have not submitted Contact persons:
payment of the final dividend to
their valid CNICs are requested
the transferees. Mr. S.M. Munawar Moosvi
to send attested copies of their
Tel. # 92 21 35831618 / 35831664
valid CNICs along with their
/ 35833011
2. Participation in the folio numbers to the Company’s Email: munawar.moosvi@
Annual General Meeting Shares Registrar. In the absence
of a shareholder’s valid CNIC, the
packages.com.pk

All members entitled to attend Company will be constrained to Mr. Ovais Khan
and vote at the Meeting, are
withhold dispatch of dividend to Tel. # 92 21 34380101-2
entitled to appoint another
such shareholders. Email: [email protected]
person in writing as their proxy
to attend and vote on their
(iii) The corporate shareholders
behalf. A proxy need not be
a member of the Company. 4. Deduction of Income Tax having CDC accounts are
required to have their National
A corporate entity, being a from Dividend Tax Number (NTN) updated with
member, may appoint any
(i) The Government of Pakistan their respective participants,
person, regardless whether they
through Finance Act, 2015 has whereas corporate physical
are a member or not, as
made certain amendments shareholders should send a copy
its proxy. In case of corporate
in Section 150 of the Income of their NTN certificate to the
entities, a resolution of the Board
Tax Ordinance, 2001 whereby company or its Share Registrar
of Directors / Power of Attorney
different rates are prescribed for i.e. Messrs FAMCO ASSOCIATES
with specimen signature of
deduction of withholding tax on (PVT.) LIMITED. The shareholders
the person nominated to
the amount of dividend paid by while sending NTN or NTN
represent and vote on behalf
the companies. These tax rates certificates, as the case may be,
of the corporate entity, shall be
are as under: must quote company name and
submitted to the Company along
their respective folio numbers.
with a completed proxy form.
(a) For filers of income tax
The proxy holders are requested
to produce their national CNICs

returns: 12.5% 5. Payment of Dividend
or original passports at the time
(b) For non-filers of income t ax Electronically
of the Meeting.
returns: 17.5 % (E-Mandate)

In order to be effective, duly In order to enable a more
To enable the Company to make
completed and signed proxy efficient method of cash
tax deduction on the amount of
forms must be received at the dividend, through its Circular
cash dividend @12.5% instead
Company’s Registered Office at No.8(4) SM/CDC 2008 of April 5,
of 17.5%, all the shareholders
4th Floor, The Forum, Suite # 416- 2013, the SECP has announced
whose names are not entered
37
Notice of Annual General Meeting
an e-dividend mechanism
where shareholders can get their
7. Change of Address and 9. Guidelines for CDC
dividend credited directly into Non-Deduction of Zakat Account Holders
their respective bank accounts Declaration Form CDC account holders will have
electronically by authorising the to follow the guidelines with
Company to do so. Accordingly, Physical shareholders are
requested to notify any change in respect to attending the Meeting
all non-CDC shareholders are and appointing of Proxies as
requested to send their bank their addresses immediately and
if applicable provide their non- issued by the Securities and
account details to the Company’s
deduction of Zakat Declaration Exchange Commission of
Registrar. Shareholders who hold
Form to the Company’s Shares Pakistan through its Circular 1 of
shares with CDC or Participants
/ Stock Brokers, are advised to Registrar, Messrs FAMCO January 26, 2000.
provide the mandate to CDC or ASSOCIATES (PVT.) LIMITED.
Furthermore, if not provided
their Participants / Stock Brokers.
earlier, members holding shares 10. Form of Proxy
in CDC / Participants accounts
Form of proxy in English and
6. Audited Financial are also requested to update
Urdu is attached in the Annual
their addresses and if applicable,
Statements through to provide their non-deduction Report and should be witnessed
E-Mail of Zakat Declaration Form to by two persons whose names,
CDC or their Participants / Stock addresses and CNIC Numbers are
SECP through its Notification SRO
Brokers. mentioned on the forms.
787(I)/2014 dated September 8,
2014, has allowed the circulation
of Audited Financial Statements 8. Video Conference Facility
along with the Notice of Annual
Form (English and Urdu) is
General Meeting to the members
attached in the Annual Report.
of the Company through email.
Please fill out and submit
Therefore, all members who
to registered address of the
wish to receive the soft copy of
Company 10 days before holding
Annual Report are requested
of the Annual General Meeting.
to send their email addresses.
The consent form for electronic
If the Company receives
transmission can be downloaded
consent from members
from the Company’s website:
holding in aggregate 10% or
more shareholding residing
www.packages.com.pk
at a geographical location,
to participate in the meeting
The Company shall, however,
through video conference at
provide hard copy of the Audited
least 10 days prior to date of
Financial Statements to its
meeting, the Company will
shareholders, on request, free of
arrange video conference facility
cost, within seven days of receipt
in the city subject to availability
of such request.
of such facility in that city.
The Company shall place the
The Company will intimate
financial statements and reports
members regarding venue of
on the Company’s website: www.
video conference facility at least
packages.com.pk at least twenty
5 days before the date of the
one (21) days prior to the date of
Annual General Meeting along
the Annual General Meeting in
with complete information
terms of SRO 634(I)/2014 dated
necessary to enable them to
July 10, 2014 issued by the SECP.
access the facility.
38
39
Directors’ Report to the Shareholders
The Directors of the Company have the pleasure in submitting their Annual Report along with the
audited financial statements of the Company for the year ended December 31, 2015.
Financial Performance
Your Company has performed well during the current year and the summarized financial performance is as follows:
2015 2014
Rupees in million
Net sales from Operations 16,025 15,087
EBITDA – operations 2,497 1,383
Depreciation & amortization (567) (536)
EBIT – operations 1,931 847
Finance costs (643) (752)
Other operating (expenses) / income – net (103) 100
Investment income 2,618 2,554
Earnings before tax 3,802 2,749
Tax (507) (213)
Earnings after tax 3,295 2,536
Basic Earnings per share – Rupees 37.42 29.89
Invoiced Sales - Net Earnings per Share

(Rupees in Million) (Rupees)
20,000 40
37.42
35
18,536
30
16,025
15,000
29.89
15,087
25
13,558
20
11,745
21.28
11,386
10,000
17.64
15
10
5,000
1.90
0
(3.94)
0 -5
2010 2011* 2012* 2013* 2014 2015 2010 2011* 2012* 2013* 2014 2015
* Represents Continuing Operations only * Represents Continuing Operations only
40
Operations have achieved net sales of

Rs. 16,025 million in 2015 against net
Packaging Division Company has also committed to make
an investment of Rs 140 million in their
sales of Rs. 15,087 million of last year Packaging Operations have achieved pre-press department for a state of the
representing sales growth of 6%. net sales of Rs. 12,618 million during art engraving machine and cylinder
2015 as compared to Rs. 12,272 million making line. This investment is in line
The operations generated Earnings of 2014 representing sales growth with the Company’s efforts to provide
before Interest, Tax, Depreciation and of 3%. EBITDA also improved by Rs. its customers with the highest quality
Amortisation (EBITDA) of Rs. 2,497 638 million i.e. 49% over 2014 values. of printing.
million during 2015 against Rs. 1,383 The Company is continuing with
million of 2014 resulting in an increase its focus on revenue growth, better
of Rs. 1,115 million. The improvement product mix, saving in fuel and energy Consumer Products Division
in earnings is primarily due to prudent costs, production efficiencies and
Consumer Products Division achieved
management of raw material costs, higher capacity utilization to improve
sales of Rs. 3,245 million during the
lower fuel and energy costs and operating results of this business
year 2015 as compared to Rs. 2,709
production efficiencies. segment.
million of 2014 representing sales
growth of 20%.
The Company actively focused on As a part of its continuing efforts
strengthening its working capital towards technological up gradation
The Division’s EBITDA increased by
cycle during 2015 and took initiatives your Company has committed to make
Rs. 496 million in 2015 compared to
to rationalise inventory levels and an investment of Rs. 310 million in a
2014 values resulting from revenue
trade debtors. The working capital as new offset printing line having double
growth, improved capacity utilisation,
a percentage to sales ratio improved coating capability in continuation of its
operating cost control initiatives and
to 13% as at December 31, 2015 efforts to remain abreast of improved
overall lower fuel and energy costs.
compared to 16% as at December technological developments in the
31, 2014. Continued improvements Packaging business. The new line
The Company invested in a new
in working capital efficiency resulted will commence its operations by the
toilet roll line to cater to the growing
in positive cash flow generation from third quarter of 2016 and will add
demand. A new brand by the name of
operations. additional capacity and capability
Maxob produced on this machine has
to meet growing customer demand
been launched during the year.
in the folding cartons business. Your
41
Fixed Assets Working Capital Debt to Equity

(Rupees in Million) (Rupees in Million) (Percentage)
6,000 43% 50 100

30,000
92
92
5,872
89
28%
85
28,472
5,000
27,749
5,112
77
40 80
76
25,000
4,000
20,000
25% 30 60
18%
3,000 16%
2,963
15,000
2,889
2,700
13% 20 40
2,300
2,000
10,000
24
23
10,036
9,744
9,835
9,275
10 20
15
1,000
11
5,000
8
0
0 0
0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
2010 2011 2012 2013 2014 2015 Working Capital Working Capital as %age to Sales Debt Equity
Production Statistics Conversion of Preference Acquisition of operations of

The production statistics for the Shares Flexible Packaging Company in
period under review along with its During the year, 2,000,000 preference South Africa
comparison with the corresponding shares issued to IFC were converted
period are as follows: During the year, the Company
into ordinary shares.
completed its acquisition of the
2015 2014 operations of a flexible packaging
This has decreased finance cost of
Consumer Products company in South Africa in line with
the Company by Rs. 19 million for the
produced - tons 11,131 10,116 its strategy to diversify and enter
year 2015 as no return on preference
into new high growth markets.
Carton Board & shares/convertible stock is payable on
The management believes that the
Consumer Products the converted shares in accordance
acquisition shall be advantageous to
converted - tons 34,510 32,511 with the terms of the subscription
its shareholders.
agreement signed with IFC in 2009.
Plastics all sorts
converted - tons 17,463 17,553
During the year, 2000,000 preference Financial Management
share to IFC one were converted into The Company’s continued focus
Investment Income ordinary shares. This has decreased on managing optimal levels of
finance cost of the Company by Rs. 19 inventory and trade receivables, sound
Investment income has increased
million for the year 2015 as no return business performance, operating
by Rs. 64 million during 2015 over
on preference shares / convertible efficiencies and cost savings across the
2014 that is indicative of improved
stock is payable on the converted organisation helped generate positive
operational performance of the
shares in accordance with the terms cash flows.
investee companies.
of the subscription agreement
signed with IFC in 2009. On February The Company has an effective Cash
Finance Costs 2, 2016 IFC exercised its right to Flow Management System in place
The finance cost has decreased by Rs. convert 1,000,000 preference shares / whereby cash inflows and outflows
109 million during 2015 over 2014 convertible stock of rupees 190 each are projected on regular basis and
mainly due to reduced mark up rates, into 1,000,000 ordinary shares of Rs. rigorously monitored.
reduced debt levels owing to better 10 each. This conversion is expected to
working capital management and take place prior to book closure date Working capital requirements are
conversion of preference shares by IFC and therefore, its effect has been taken planned to be financed through
as explained below. in the dividend appropriation. efficient management of trade
42
receivables, payables and inventory

levels. Business unit managers are
Credit Risk Current & Quick Ratio
assigned working capital targets which All financial assets of the Company,
4.0
are monitored on regular basis. except cash in hand, are subject to
3.52
credit risk. The Company believes 3.5
1.57
Capital expenditure is managed that it is not exposed to major 3.0
carefully through a rigorous evaluation concentration of credit risk. Exposure 2.5

2.57
0.96
of profitability and risks and regular is managed through application of
2.0
project review for delivery on time credit limits to its customers and 1.57 1.57
1.67 1.61
diversification of its investment
1.13
1.5
1.15
and at budgeted cost. Large capital
1.07
1.03
expenditure is further backed by portfolio placed with ‘A’ ranked banks 1.0
long-term contracts so as to minimise and financial institutions. 0.5
cash flow risk to the business. Capital

Liquidity Risk
0.0
expenditure during 2015 was at Rs. 713 2010 2011* 2012* 2013* 2014 2015
million. Current Ratio Quick Ratio
Prudent liquidity risk management * Represents Continuing Operations only
ensures availability of sufficient funds

The investment portfolio of the
for meeting contractual commitments. approach to capital management
Company is fairly diversified, as
The Company’s fund management during the year.
reflected by equity participation
strategy aims at managing liquidity risk
in Nestle Pakistan Limited, Tri-Pack
through internal cash generation and
Films Limited, Tetra Pak Pakistan
committed credit lines with financial
Contribution to National
Limited, Bulleh Shah Packaging
institutions. Exchequer
(Private) Limited, DIC Pakistan Limited,
Packages Construction (Private) Your Company is a noteworthy
Limited, Packages Lanka (Private) Interest Rate Risk contributor to the national economy
Limited and Anemone Holdings and has contributed Rs. 1,448.4
Variable rate long-term financing is
Limited. million during the year 2015 to the
hedged against interest rate risk by
national exchequer on account of sales
holding “prepayment option”, which
The Board is satisfied that there are no tax, income tax, import duties and
can be exercised upon any adverse
short or long-term financial constraints statutory levies.
movement in the underlying interest
including access to credit and a strong rates.
balance sheet with December 2015 Environment, Health & Safety
with net debt : equity ratio at 8: 92.
Foreign Exchange Risk Your Company is striving to meet
Foreign currency risk arises mainly the best environmental, health and
safety standards by developing best
Risk Mitigation where receivables and payables
operational practices. The prime areas
exist due to transaction in foreign
The Board of Directors and the Audit of focus in 2015 continued to be food
currencies. The Company is mainly
Committee of the Board regularly safety, fire safety and training and
exposed to short-term USD/PKR and
review the risk matrix in terms of development.
Euro/PKR parity on its import of raw
impact and probability of occurrence.
materials and plant and machinery.
The senior management team, During the year the Company got re-
led by the Chief Executive Officer certifications for the following:
is responsible for risk mitigation Capital Management
measures. The Company’s ability to The Company’s policy is to maintain a • SMETA
continually assess market conditions strong capital base so as to maintain • URSA
and then react decisively, allows the investor, creditor and market • FSC COC
Company to manage risks responsibly confidence and to sustain future • HALAL CERTIFICATION (stage 1
and take opportunities to strengthen development of the business. There complete)
the position of the Company when were no changes to the Company’s • ISO 26000
they arise.
43
Your Company is also focusing on

behavior based safety and risk control
which enables minimizing the risks of
injuries and accidents.
Campaigns are an integral part of

the environmental, health and safety
initiatives; significant campaigns of
2015 include the following:
• Food Safety Campaign

• Measles Campaign
• “Sub Keh Do” Campaign
• Dengue Prevention Campaign
• Driver and Road Safety Campaign

(CSR) pension funds based on their audited
Auditors
On CSR, the Company’s management accounts as on December 31, 2015
were the following: The present auditors M/s A.F Ferguson
continued its focus on education,
& Co., Chartered Accountants retire
healthcare, skill development,
Provident Fund Rs. 2,131.396 million and offer themselves for
environmental protection and social
Gratuity Fund Rs. 362.197 million re-appointment. They have confirmed
welfare during the current year.
Pension Fund Rs. 1,752.322 million achieving satisfactory rating by the
Institute of Chartered Accountants of
As per decision of the Board of
Directors, Packages Foundation was Appropriation Pakistan (ICAP) and compliance with
the Guidelines on the Code of Ethics
incorporated on June 12, 2015. The In view of the financial results of of the International Federation of
primary objective of the Foundation the Company for the year 2015, the Accountants (IFAC) as adopted by ICAP.
is to contribute towards the health, Board of directors of the Company
education and other charitable and has recommended cash dividend As suggested by the Audit
welfare causes. The Company is of 150 percent (i.e. Rs. 15 per Committee, the Board of Directors has
making contributions / donations to share). Accordingly, the following recommended their re-appointment as
Packages Foundation for carrying out appropriations have been made: Auditors of the Company for the year
its social work, The Company donated
ending December 31, 2016, at a fee to
Rs. 10.416 million towards various Rupees in
be mutually agreed.
causes in the current year. thousand
Total comprehensive income Compliance with the Code of
Retirement Funds for the year 2015 after Corporate Governance
appropriation of preference
There are three retirement funds The requirements of the Code of
dividend / return 3,200,163
currently being operated by the Corporate Governance as set out by
Company namely Provident Fund, the Pakistan Stock Exchange in its
Un-appropriated profit
Gratuity Fund and Management staff Listing Regulations have been adopted
brought forward 514,403
Pension Fund. by the Company and have been duly
Available for appropriation 3,714,566 complied with. A statement to this
The value of investments of provident, Transfer to General reserve (1,500,000) effect is annexed to the report.
gratuity and Management staff Cash dividend (1,340,693)
To be carried forward to 2016 873,873
44
Material Changes Meetings of Board of Directors Board Composition

(Percentage)
There have been no material changes During the year 2015, five (5) Board
since December 31, 2015 and the meetings were held and the number of
Company has not entered into any meetings attended by each Director is
commitment, which would affect its given hereunder:- 20%
financial position at the date except

for those mentioned in the audited Name of No. of Meetings
financial statements of the Company Director attended 10%
for the year ended December 31, 2015.

Mr. Towfiq Habib Chinoy 70%
(Chairman) 4
Changes in the Composition
Syed Hyder Ali
of Board and its Audit (Chief Executive) 5
Committee Mr. Josef Meinrad Mueller 1 Non Executive Directors
Executive Directors
During the year 2015, Mr. Veli Jussi Independent
Mr. Rizwan Ghani 5
Olavi Potka, nominee of Stora Enso
AB of Finland resigned and Mr. Mr. Veli-Jussi Olavi Potka
Jari Latvanen, another nominee of (Resigned on 7 July 2015) 2
Stora Enso AB, was appointed in his Mr. Jari Latvanen Audit Committee
place. The Board wishes to record its (Appointed on 7 July 2015) 1 An Audit Committee of the Board
appreciation of the valuable services has been in existence since the
Mr. Muhammad Aurangzeb 2
rendered by the outgoing Director and enforcement of the Code of Corporate
welcomes the new Director who will Mr. Shamim Ahmad Khan 5 Governance, which comprises of four
hold office for the remainder of the Syed Aslam Mehdi 4 Non-Executive and one independent
term of the outgoing member. Director.
Syed Shahid Ali 3
Mr. Tariq Iqbal Khan 4 Four (4) meetings of the Audit
Committee were held during the year
Leave of absence was granted to the 2015. The attendance of each Member
directors who could not attend the is given hereunder –
Board meetings.
45
Name of No. of meetings

Member attended
Mr. Tariq Iqbal Khan

(Chairman) 3
Mr. Muhammad Aurangzeb
(Independent) 1
Mr. Shamim Ahmad Khan
(Non-Executive) 4
Syed Shahid Ali
(Non-Executive) 3
Syed Aslam Mehdi
(Non-Executive) 4
Leave of absence was granted to the accounting estimates are based Purchase of shares No. of shares
Members who could not attend the on reasonable and prudent
Chief Executive Officer Nil
Meetings of the Audit Committee. judgment.
Director 30,000
• International Accounting
The Audit Committee has its terms of Standards, as applicable in Chief Financial Officer Nil
reference which were determined by Pakistan, have been followed in Company Secretary Nil
the Board of Directors in accordance the preparation of the financial
with the guidelines provided in the Spouses Nil
statements.
Listing Regulations and Code of Sale of Shares Nil
Corporate Governance. • The system of internal control
is sound in design and has
Corporate and Financial

been effectively implemented Pattern of Shareholding
and monitored and is being
Reporting Framework continuously reviewed by the
A statement of the pattern of
shareholding of certain class of
internal audit function.
shareholders as at December 31,
• The financial statements • There are no doubts upon the 2015, whose disclosure is required
together with the notes thereon Company’s ability to continue as under the reporting framework, is
have been drawn up by the a going concern. included in the annexed shareholders’
management in conformity with information.
• There has been no material
the Companies Ordinance, 1984.
departure from the Best Practices
These Statements present fairly The Directors, CEO, CFO, Company
of Corporate Governance,
the Company’s state of affairs, Secretary and their spouses or minor
as detailed in the Listing
the results of its operations, children did not carry out any trade in
Regulations.
cash flow and changes in equity. the shares of the Company during the
• The key operating and financial
• Proper books of account year, except as noted above.
data for the last ten years is
have been maintained by the
annexed.
Company.
• Trading of Shares by Chief
• Appropriate accounting
Executive, Directors, Chief
policies have been consistently
Financial Officer, Company
applied in the preparation
Secretary, their spouses and
of financial statements and
minor children:
46
Future Outlook Company’s development of a high

quality retail mall at its Lahore land
Company’s Staff and
The management believes that through its wholly owned subsidiary, Customers
economic activity will show further Packages Construction (Private) The management is thankful to the
improvement that will lead to Limited is underway. Company’s stakeholders especially
increased consumption of consumer its customers for their continuing
goods and hence more packaging The construction of the mall is based confidence in its products and
demand. For 2016, on the back of on inputs from international retail services.
deflation, the management strategy consultants. Space is being leased out The management also wishes
is to focus on achieving double digit with a tenancy mix aimed to appeal to express its gratitude to all the
volume growth. Furthermore, the to a wide cross section of the market Company’s employees who have
Company will continue to focus on including major anchor tenants, worked tirelessly and delivered
cost efficiencies, price rationalisation cinemas, food courts, international outstanding performance in the
and product mix realignment. brand specialty shops, local brands backdrop of challenging economic
and retailers. The mall is expected to and business environment. We
Growth is expected in the tissue be operational in the last quarter of appreciate their hard work, loyalty
market owing to increased awareness 2016. and dedication.
relating to hygiene. The Company is
taking steps to enhance market share
and improve market penetration and
will continue to focus on targeted
growth initiatives, innovation, brand
building and cost saving programs.
(Towfiq Habib Chinoy) (Syed Hyder Ali)
As part of its asset and income Chairman Chief Executive & Managing Director
diversification strategy, the Karachi, February 25, 2016 Karachi, February 25, 2016
47
‫غیر ملکی زرمبادلہ کے خطرات‬ ‫(پرائیویٹ) ملیٹڈ‪ ،‬پیکیجز لنکا (پرائیویٹ) ملیٹڈ اور‬ ‫کو منافع منقسمہ کے ترصف پر اثر انداز کر دیا‬
‫غیر ملکی کرنسی کے خطرات عمومی طور پر وہاں‬ ‫اینی مون ہولڈنگز (پرائیویٹ) ملیٹڈ میں ایکویٹی‬ ‫گیا ہے۔‬
‫ہوتے ہیں جہاں وصولیابیاں اور ادائیگیاں غیر ملکی‬ ‫رشاکت سے واضح ہوتا ہے۔‬
‫کرنسیوں کے تبادلوں پر کی جاتی ہیں۔ کمپنی‬ ‫جنوبی افریقہ میں فلیکس ایبل پیکیجنگ کمپنی‬
‫بنیادی طور پر اپنے خام مال اور پالنٹ و مشیرنی‬ ‫بورڈ اس امر پر مطمنئ ہے کہ کوئی مخترص یا‬ ‫کے آپریشنز کا حصول‬
‫کی درا ٓمد پر شارٹ ٹرم کے لئے امریکی ڈالر‪/‬پاک‬ ‫طویل مدتی مالیاتی پابندی بشمول کریڈٹ تک‬ ‫سال کے دوران کمپنی نے جنوبی افریقہ میں ایک‬
‫روپے اور یورو‪ /‬پاک روپے پر کام کرتی ہے۔‬ ‫رسائی موجود نہیں ہے اور دسمرب ‪2015‬کے ساتھ‬ ‫فلیکس ایبل پیکیجنگ کمپنی کے ا ٓپریشنز کی ذمے‬
‫ایک مضبوط بیلنس شیٹ مع خالص قرضہ ایکویٹی‬ ‫اعلی‬
‫داری سنبھالی جو کمپنی کی جانب سے نئی ٰ‬
‫کیپٹل مینجمنٹ‬ ‫تناسب ‪8:92‬پر ہے۔‬ ‫گروتھ کی حامل مارکیٹوں میں داخل ہونے اور‬
‫کمپنی کی پالیسی ایک مستحکم کیپٹل بنیاد برقرار‬ ‫کاروبار کو مختلف سمتوں میں ڈالنے کی حکمت‬
‫خطرات میں کمی‬ ‫عملی کا حصہ تھی۔ انتظامیہ اس امر پر یقین‬
‫رکھنا ہے تاکہ انویسٹر‪ ،‬کریڈیٹر اور مارکیٹ کا‬
‫اعتامد برقرار رہے اور کاروبار کی مستقبل کا عمل‬ ‫بورڈ ا ٓف ڈائریکٹرز اور بورڈ کی ا ٓڈٹ کمیٹی وقوعہ‬ ‫رکھتی ہے کہ یہ کاروبار شیرئ ہولڈرز کے لئے مزید‬
‫بھی جاری رہے۔ اس سال بھی کیپٹل مینجمنٹ کے‬ ‫کے اثرات اور منافع کے ضمن میں خطرات کے‬ ‫مفید ثابت ہوگا۔‬
‫لئے کمپنی کی اپروچ میں کوئی تبدیلی نہیں ا ٓئی۔‬ ‫میٹرکس کا باقاعدگی سے جائزہ لیتی ہے۔ چیف‬
‫ایگزیکٹو ا ٓفیرس کی زیر قیادت سینرئ انتظامی ٹیم‬ ‫فنانشل مینجمنٹ‬
‫قومی خزانے میں رشاکت‬ ‫خطرات میں کمی کے پیامنوں کے لئے ذمے دار‬ ‫کمپنی نے انوینٹری کے زیادہ سے زیادہ حجم اور‬
‫ہے۔ مارکیٹ کی صورتحال کا مستقل جائزہ لینے‬ ‫تجارتی وصولیابی کے انتظام‪ ،‬مستحکم کاروباری‬
‫ا ٓپ کی کمپنی قومی خزانے کے لئے ایک بڑی‬ ‫کے لئے کمپنی کی صالحیت اور اس کے بعد موثر‬
‫رشاکت دار ہے اور سال ‪2015‬کے دوران کمپنی‬ ‫کارکردگی‪ ،‬ا ٓپریٹنگ کی صالحیتوں میں اضافے اور‬
‫ردعمل کمپنی کو خطرات سے منٹنے کی اجازت‬ ‫پورے ادارے میں اخراجات میں کمی پر مستقل‬
‫نے سیلز ٹیکس‪ ،‬انکم ٹیکس‪ ،‬درا ٓمدی ڈیوٹیوں اور‬ ‫دینے کے ساتھ رضورت کے مطابق کمپنی کی‬
‫اسٹیچوٹری لیویز کے ضمن میں قومی خزانے میں‬ ‫توجہ دی ہے جس سے نقد رقومات کی فراوانی پر‬
‫پوزیشن مستحکم بنانے کے مواقع دیتا ہے۔‬ ‫مثبت اثرات واضح ہوئے ہیں۔‬
‫‪1,448.4‬ملین روپے جمع کرائے۔‬
‫کریڈٹ کے خطرات‬ ‫کمپنی ایک موثر کیش فلو مینجمنٹ سسٹم کی‬
‫ماحولیات‪ ،‬صحت اور تحفظ‬
‫کمپنی کے متامرت مالیاتی اثاثہ جات ماسوائے‬ ‫حامل ہے اور اس مقام پر کیش ان فلوز اور ا ٓئوٹ‬
‫ا ٓپ کی کمپنی بہرتین ا ٓپریشنل طریقہ کار کو فروغ‬ ‫زیرگردش نقد رقم کریڈٹ رسک سے مرشوط ہیں۔‬ ‫فلوز پر ریگولر بنیاد پر واضح کیا اور سختی کے‬
‫دینے کے ذریعے بہرتین ماحولیاتی صحت اور‬ ‫کمپنی اس امر پر یقین رکھتی ہے کہ کریڈٹ رسک‬ ‫ساتھ مانیٹر کیا جاتا ہے۔‬
‫تحفظ کے اسٹینڈرڈز پر پورا اترنے کے لئے کوشاں‬ ‫کے اہم ماخذ کو ایکسپوز نہیں کیا جاتا۔ ایکسپوزر‬
‫ہے۔ ‪2015‬میں توجہ کے منایاں شعبے فوڈ سیفٹی‪،‬‬ ‫اس کے صارفین کے لئے کریڈٹ کی حدود کے‬ ‫ورکنگ کیپٹل کی رضوریات کو تجارتی وصولیابیوں‪،‬‬
‫فائر سیفٹی‪ ،‬ٹریننگ اور ڈیولپمنٹ رہے۔‬ ‫نفاذ اور ’اے‘ رینک کے حامل بینکس اور مالیاتی‬ ‫قابل ادائی واجبات اور انوینٹری حجم کے مستعد‬
‫اداروں کے ساتھ اس کے انویسٹمنٹس پورٹ فولیو‬ ‫انتظام کے ذریعے فنانس کرنے کی منصوبہ بندی‬
‫سال کے دوران کمپنی نے درج ذیل کے لئے ری‬ ‫کی ڈائیور سیفکیشن کے ذریعے ممکن بنایا گیا‬ ‫کی گئی۔ بزنس یونٹ منیجرز کو ورکنگ کیپٹل‬
‫‪:‬رسٹیفکیشن حاصل کیا‬ ‫ہے۔‬ ‫اہداف تفویض کئے گئے ہیں جن کو باقاعدہ بنیاد‬
‫پر مانیٹر کیا جاتا ہے۔‬
‫• )‪ (SMETA‬ایس ایم ای ٹی اے‬ ‫لیکویڈیٹی کے خطرات‬
‫• )‪ (URSA‬یو ا ٓر ایس اے‬ ‫کیپٹل اخراجات منافع جات اور خطرات کی کڑی‬
‫ ‬ ‫• )‪ (FSC COC‬ایف ایس سی سی او سی‬ ‫لیکویڈیٹی کے محتاط خطرات کا بندوبست‬
‫معاہدے پورے کرنے کے لئے مناسب فنڈز کی‬ ‫جانچ پڑتال کے ذریعے انتہائی احتیاط کے ذریعے‬
‫ ‬ ‫• )حالل رسٹیفکیشن (مرحلہ ‪1‬مکمل‬ ‫طے کئے جاتے ہیں اور بروقت ڈلیوری اور طے‬
‫ ‬ ‫• ‪ISO 26000‬‬ ‫دستیابی کو یقینی بناتا ہے۔ کمپنی کے فنڈ کے‬
‫انتظام کی حکمت عملی کے مقاصد اندرونی طور‬ ‫شدہ الگت کے لئے پراجیکٹ کا باقاعدگی سے‬
‫پر کیش جرنیشن اور مالیاتی اداروں کے ساتھ طے‬ ‫جائزہ لیا جاتا ہے۔ وسیع تر کیپٹل اخراجات مزید‬
‫ا ٓپ کی کمپنی رویوں میں مبنی سیفٹی اور رسک‬ ‫طویل مدتی کنٹریکٹس کے ذریعے ممکن ہوتے‬
‫کنٹرول پر بھی توجہ دے رہی ہے جس سے زخمی‬ ‫کردہ کریڈٹ الئنز کے ذریعے لیکویڈیٹی رسک کا‬
‫انتظام کرنا ہے۔‬ ‫ہیں تاکہ کاروبار میں کیش فلو کے خطرے کو‬
‫ہونے اور حادثات کے خطرات کو کم کرنے میں‬ ‫کم کیا جائے۔ ‪2015‬میں کیپٹل اخراجات ‪713‬ملین‬
‫مدد ملے گی۔‬ ‫روپے تھے۔‬
‫رشح سود کے خطرات‬
‫ماحولیاتی صحت اور تحفظ کے اقدامات کے ایک‬ ‫متغیر ریٹ کی طویل مدتی فنانسنگ ’’پری پے‬ ‫کمپنی کا انویسٹمنٹ پورٹ فولیو شفاف انداز‬
‫مربوط حصہ کے طور پر مختلف انداز کی مہم کو‬ ‫منٹ ا ٓپشن‘‘ کے انعقاد کے ذریعے رشح سود کے‬ ‫میں مختلف سمتوں میں موڑا گیا جیسا کہ نیسلے‬
‫رضوری تصور کیا جاتا ہے۔ ‪2015‬کی منایاں مہم‬ ‫خطرات کے برخالف ظاہر نہیں کی جاتی جوکہ‬ ‫پاکستان ملیٹڈ‪ ،‬ٹرائی پیک فلمز ملیٹڈ‪ ،‬ٹیٹرا پیک‬
‫میں درج ذیل شامل ہیں‪-:‬‬ ‫بنیادی رشح سود میں کسی بھی منفی اقدام کے‬ ‫پاکستان ملیٹڈ‪ ،‬بلھے شاہ پیکیجنگ (پرائیویٹ)‬
‫تحت استعامل کیا جاسکتا ہے۔‬ ‫ملیٹڈ‪ ،‬ڈی ا ٓئی سی پاکستان ملیٹڈ‪ ،‬پیکیجز کنسٹرکشن‬
‫‪48‬‬
‫‪ANNUAL REPORT OF PACKAGES LIMITED 2015‬‬
‫ڈائریکٹرز کی رپورٹ برائے شیرئ ہولڈرز‬
‫کمپنی نے بڑھتی ہوئی طلب کو پورا کرنے کے لئے‬ ‫‪2014‬میں ‪16‬فیصد تھی جوکہ ‪31‬دسمرب ‪2015‬‬
‫نئی ٹوائیلٹ رول الئن میں بھی رسمایہ کاری کی۔‬ ‫میں بہرت ہوکر ‪13‬فیصد ہوگئی۔ ورکنگ کیپٹل میں‬
‫سال کے دوران اس نئی مشین پر بنے ہوئے ایک‬ ‫مستقل بہرتی ا ٓنے سے ا ٓپریشنز میں بھی کیش فلو‬
‫نئے برانڈ میکسوب )‪ (MAXOB‬کو مارکیٹ میں‬ ‫جرنیشن میں مثبت اثرات ظاہر ہوئے۔‬ ‫کمپنی کے ڈائریکٹرز سال مختتمہ ‪31‬دسمرب‬
‫متعارف کرایا گیا۔‬ ‫‪2015‬کے لئے اپنی ساالنہ رپورٹ بشمول‬
‫پیکیجنگ ڈویژن‬ ‫کمپنی کے آڈٹ شدہ مالیاتی حسابات جمع‬
‫پروڈکشن کے اعداد و شامر‬ ‫پیکیجنگ ا ٓپریشن نے ‪2015‬کے دوران ‪12,618‬ملین‬ ‫کراتے ہوئے فخر محسوس کررہے ہیں۔‬
‫زیر جائزہ مدت کے دوران پروڈکشن کے اعداد و‬ ‫روپے کا خالص سیلز حاصل کیا جبکہ ‪2014‬میں یہ‬
‫شامر گزشتہ سال کے مقابلے میں درج ذیل ہیں‪:‬‬ ‫حجم ‪12,272‬ملین روپے تھا اور اس طرح ‪3‬فیصد‬ ‫مالیاتی کارکردگی‬
‫کی سیلز گروتھ حاصل ہوئی۔ ‪ EBITDA‬میں بھی‬
‫ا ٓپ کی کمپنی نے سال رواں کے دوران بہرتین‬
‫ ‪ 2014‬‬ ‫ ‪2015‬‬ ‫‪638‬ملین روپے تک بہرتی ا ٓئی یعنی ‪2014‬کی‬
‫کارکردگی کا مظاہرہ کیا اور مخترصا ً مالیاتی‬
‫اشیائے صارف‬ ‫ویلیوز پر ‪49‬فیصد اضافہ ہوا۔ کمپنی نے کاروبار‬
‫کارکردگی درج ذیل کے مطابق رہی۔‬
‫ ‪ 10,116 11,131‬‬ ‫تیار کردہ‪ -‬ٹنز‬ ‫کے اس شعبے میں ا ٓپریٹنگ نتائج کو مزید بہرت‬
‫کارٹن بورڈ اور کنزیومر‬ ‫بنانے کے لئے ریونیو گروتھ‪ ،‬بہرتین پروڈکٹ مکس‪،‬‬
‫ ‪ 2014 2015‬‬
‫ ‪ 32,511 34,510‬‬ ‫پروڈکٹس‪ -‬کنورٹڈ‪ -‬ٹنز‬ ‫فیول اور انرجی کی الگت میں بچت‪ ،‬پروڈکشن کی‬
‫ )روپے ملین میں( ‬
‫پالسٹک متام اقسام‬ ‫بہرت کارکردگی اور کیپسٹی یوٹیالئزیشن میں اضافہ‬
‫پر مسلسل توجہ دے رہی ہے۔‬ ‫ ‪ 15,087 16,025‬‬ ‫ا ٓپریشنز سےخالص سیلز‬
‫ ‪ 17,553 17,463‬‬ ‫کنورٹڈ‪ -‬ٹنز‬
‫ ‪ 1,383 2,497‬‬ ‫‪ EBITDA‬ا ٓپریشنز‬
‫انویسٹمنٹ آمدنی‬ ‫ٹیکنالوجیکل اپ گریڈیشن کے ضمن میں اپنی‬ ‫)‪ (536) (567‬‬ ‫فرسودگی اور کساد بازاری‬
‫مسلسل کوششوں کے طور پر ا ٓپ کی کمپنی‬
‫انویسٹمنٹ ا ٓمدنی میں سال ‪2015‬کے دوران سال‬ ‫ ‪ 847‬‬ ‫ ‪1,931‬‬ ‫‪ EBIT‬آپریشنز‬
‫نے ایک نئی ا ٓفسیٹ پرنٹنگ الئن میں ‪310‬ملین‬
‫‪2014‬کے مقابلے میں ‪64‬ملین روپے کا اضافہ‬ ‫ )‪ (752) (643‬‬ ‫فنانس کی الگت‬
‫روپے کی رسمایہ کاری کا وعدہ کیا ہے جس سے‬
‫ہوا جو رسمایہ کار کمپنیوں کی بہرتین ا ٓپریشنل‬ ‫دیگر آپریٹنگ(اخراجات(‪/‬‬
‫پیکیجنگ بزنس میں بہرتین تیکنیکی ترقی کی‬
‫کارکردگی کا اظہار ہے۔‬ ‫ )‪ 100 (103‬‬ ‫ا ٓمدنی خالص‬
‫کوشش برقرار رکھنے کے تسلسل کے ساتھ ڈبل‬
‫ ‪ 2,554 2,618‬‬ ‫رسمایہ کاری آمدنی‬
‫کوٹنگ کی صالحیت بھی حاصل ہوگی۔ اس نئی‬
‫فنانس کے اخراجات‬ ‫الئن کے باقاعدہ ا ٓپریشنز کا ا ٓغاز ‪2016‬کی تیرسی‬ ‫ ‪ 2,749 3,802‬‬ ‫آمدنی قبل از ٹیکس‬
‫فنانس کے اخراجات سال ‪2015‬کے دوران ‪2014‬میں‬ ‫سہ ماہی تک ہوجائے گا اور فولڈنگ کارٹنز کے‬ ‫ )‪ (213) (507‬‬ ‫ٹیکس‬
‫‪109‬ملین روپے تک کم ہوگئے جو بنیادی طور پر‬ ‫بزنس میں صارف کی بڑھتی ہوئی طلب کو پورا‬ ‫ ‪ 2,536‬‬ ‫ ‪3,295‬‬ ‫آمدنی بعد از ٹیکس‬
‫رشح سود میں کمی‪ ،‬بہرت ورکنگ کیپٹل مینجمنٹ‬ ‫کرنے کے لئے اضافی گنجائش اور صالحیت کا‬
‫اضافہ ہوگا۔ ا ٓپ کی کمپنی نے اپنے پری‪ -‬پریس‬ ‫بنیادی آمدنی فی‬
‫کے باعث قرضوں کے حجم میں کمی اور ا ٓئی ایف‬
‫ڈپارٹمنٹ میں ایک جدید ترین اینگر یونگ مشین‬ ‫ ‪ 29.89‬‬ ‫ ‪37.42‬‬ ‫شیرئ‪ -‬روپے‬
‫سی کی جانب ترجیحی شیرئز کی منتقلی‪ ،‬جیسا‬
‫کہ ذیل میں وضاحت کردی گئی ہے‪ ،‬کے باعث‬ ‫اور سیلنڈر میکنگ الئن کے لئے ‪140‬ملین روپے‬
‫کی رسمایہ کاری کا فیصلہ بھی کیا ہے۔ یہ رسمایہ‬ ‫ا ٓپریشنز سے ‪2015‬میں ‪16,025‬ملین روپے کی‬
‫ممکن ہوئی۔‬
‫کاری اپنے صارفین کو پرنٹنگ کی بہرتین کوالٹی‬ ‫خالص سیلز حاصل کی گئی جبکہ گزشتہ سال‬
‫کی فراہمی کے لئے کمپنی کی کوششوں کا حصہ‬ ‫‪15,087‬ملین روپے کی خالص سیلز رہی تھی جس‬
‫ترجیجی شیرئز کی منتقلی‬
‫ہے۔‬ ‫سے ‪6‬فیصد اضافہ ظاہر ہوا۔‬
‫سال رواں کے دوران ا ٓئی ایف سی کو جاری کردہ‬
‫‪2,000,000‬ترجیحی شیرئز عمومی شیرئز میں‬ ‫ا ٓپریشنز سے ‪2015‬کے دوران ا ٓمدنی قبل از منافع‪،‬‬
‫منتقل کئے گئے۔ اس سےسال‪2015‬کیلئےکمپنی‬ ‫کنزیومر پروڈکٹس ڈویژن‬
‫ٹیکس‪ ،‬فرسودگی اور کساد بازاری )‪2,497(EBITDA‬‬
‫کی فنانسنگ الگت میں سال ‪19‬ملین روپے تک کی‬ ‫کنزیومر پروڈکٹس ڈویژن نے ‪2015‬کے دوران‬ ‫ملین روپے رہی جوکہ ‪2014‬میں‪1,383‬ملین روپے‬
‫کمی ا ٓئی کیونکہ سال ‪2009‬میں ا ٓئی ایف سی کے‬ ‫‪3,245‬ملین روپے کی سیلز حاصل کی جبکہ‬ ‫تھی۔ نتیجتاً ‪1,115‬ملین روپے کا اضافہ ہوا۔ ا ٓمدنی‬
‫ساتھ طے کردہ سبسکرپشن معاہدے کی رشائط‬ ‫‪2014‬میں یہ حجم ‪2,709‬ملین روپے تھا جس سے‬ ‫میں بنیادی طور پر بہرتی خام مال کی الگت کے‬
‫کے مطابق منتقل کردہ شیرئز پر ترجیحی شیرئز ‪/‬‬ ‫‪20‬فیصد سیلز گروتھ ظاہر ہوتی ہے۔‬ ‫موثر انتظام‪ ،‬ایندھن اور انرجی کے نرخوں میں‬
‫مستقل شدہ اسٹاک پر کوئی منافع قابل ادائیگی‬ ‫کمی اور پیداواری صالحیت کی بدولت ا ٓئی۔‬
‫نہیں ہوتا۔ ‪2‬فروری ‪2016‬کو ا ٓئی ایف سی نے اپنے‬ ‫ڈویژن کے ‪2015 EBITDA‬میں سال ‪2014‬کی‬
‫اختیارات کو بروئے کار التے ہوئے ‪190‬روپے مالیت‬ ‫ویلیوز کے مقابلے میں ‪496‬ملین روپے تک‬ ‫کمپنی نے موثر طور پر ‪2015‬کے دوران اپنے‬
‫کے ‪1,000,000‬ترجیحی شیرئز‪ /‬منتقل شدہ اسٹاک‬ ‫کا اضافہ ہوا جو ریونیو گروتھ‪ ،‬بہرت کیپسٹی‬ ‫ورکنگ کیپٹل سائیکل کو مستحکم بنانے پر توجہ‬
‫کو ہر ایک ‪10‬روپے مالیت کے ‪1,000,000‬عمومی‬ ‫یوٹیالئزیشن‪ ،‬ا ٓپریٹنگ الگت پر کنٹرول کے اقدامات‬ ‫دی اور معقول انوینٹری پیامنوں اور ٹریڈ ڈیبٹرز‬
‫شیرئز میں منتقل کیا۔ یہ منتقلی کتاب کی بندش‬ ‫اور مجموعی طور پر فیول اور انرجی کی الگت‬ ‫کے لئے اقدامات کئے۔ سیلز کے تناسب کے لئے‬
‫کی تاریخ سے پہلے متوقع ہے ل ٰہذا اس کے اثرات‬ ‫میں کمی کے باعث ممکن ہوسکا۔‬ ‫فیصدی رشح کے مطابق ورکنگ کیپٹل ‪31‬دسمرب‬
‫‪49‬‬
‫اقدامات‪ ،‬نئی مصنوعات‪ ،‬برانڈ بلڈنگ اور باکفایت‬ ‫• گزشتہ دس سالوں کے لئے بنیادی ا ٓپریٹنگ اور‬ ‫ رشکت کردہ ‬
‫پروگراموں پر توجہ کا سلسلہ جاری رکھا جائے گا۔‬ ‫مالیاتی تفصیل منسلک ہے۔‬ ‫ اجالس کی تعداد‬ ‫ممربکانام‬
‫ ‪ 3‬‬ ‫جناب طارق اقبال )چیرئمین(‬
‫اپنے اثاثہ جات اور ا ٓمدنی کو مختلف سمتوں میں‬ ‫•چیف ایگزیکٹو‪ ،‬ڈائریکٹرز‪ ،‬چیف فنانشل ا ٓفیرس‬ ‫ ‪ 1‬‬ ‫جناب محمد اورنگ زیب)آزاد(‬
‫توسیع دینے کی حکمت عملی کے حصے کے طور‬ ‫کمپنی سیکریٹری‪ ،‬ان کے رشیک حیات اور نابالغ‬ ‫جناب شمیم احمد خان )نان ایگزیکوٹیو( ‪ 4‬‬
‫اعلی معیار کا ریٹیل‬
‫پر کمپنی کا الہور میں ایک ٰ‬ ‫بچوں کی جانب سے شیرئز کی ٹریڈنگ درج ذیل‬ ‫ ‪ 3‬‬ ‫سید شاہد علی )نان ایگزیکوٹیو(‬
‫مال زیر تکمیل ہے جو مکمل طور پر اس کے ذیلی‬ ‫ہے‪:‬۔‬ ‫ ‪ 4‬‬ ‫سید اسلم مہدی )نان ایگزیکوٹیو(‬
‫ادارے پیکیجز کنسٹرکشن (پرائیویٹ) ملیٹڈ کے‬
‫ذریعے پایہ تکمیل تک پہنچایا جارہا ہے۔‬ ‫ ‬ ‫ شیرئز کی تعداد‬ ‫شیرئز کی خریداری‬ ‫ا ٓڈٹ کمیٹی کے اجالسوں میں رشکت نہ کرنےیا نہ‬
‫ ‬ ‫ کوئی نہیں‬ ‫چیف ایگزیکٹو ا ٓفیرس‬ ‫ا ٓنے والے ممربان کو غیر حارضی کے لئے چھٹی‬
‫مال کی تعمیر بین االقوامی ریٹیل کنسلٹینٹس کی‬ ‫ڈائریکٹر ‪ 30,000‬‬ ‫منظور کردی گئی تھی۔‬
‫مشاورت سے جاری ہے۔ جگہ کو کرایہ داری کے‬ ‫ ‬ ‫ کوئی نہیں‬ ‫چیف فنانشل ا ٓفیرس‬
‫امتزاج کے ساتھ لیز پر دیا گیا ہے جو مارکیٹ کے‬ ‫ ‬ ‫ کوئی نہیں‬ ‫کمپنی سیکریٹری‬ ‫ا ٓڈٹ کمیٹی اپنے ٹرمز ا ٓف ریفرنس کی حامل‬
‫وسیع تر شعبہ جات بشمول اہم اینکر کرایہ دار‪،‬‬ ‫ ‬ ‫ کوئی نہیں‬ ‫رشیک حیات‬ ‫ہے جن کا تعین لسٹنگ ریگولیشنز اور کوڈ ا ٓف‬
‫سینامز‪ ،‬فوڈ کورٹس‪ ،‬انٹرنیشنل برانڈ‪ ،‬بالخصوص‬ ‫ ‬ ‫ کوئی نہیں‬ ‫شیرئز کی فروخت‬ ‫کارپوریٹ گورنینس میں فراہم کردہ رہنام ہدایات‬
‫دکانیں‪ ،‬لوکل برانڈز اور ریٹیلرز کے لئے کشش کا‬ ‫کے مطابق بورڈ ا ٓف ڈائریکٹرز کی جانب سے کیا‬
‫باعث ہوگا۔ یہ مال متوقع طور پر ‪2016‬کی ا ٓخری‬ ‫شیرئ ہولڈنگ کا پیٹرن‬ ‫گیا ہے۔‬
‫سہ ماہی میں ا ٓپریشنل ہوجائے گا۔‬
‫شیرئ ہولڈرز کی مختلف کالس کی شیرئ ہولڈنگ‬
‫کے پیٹرن کا ایک اسٹیٹمنٹ مبطابق ‪31‬دسمرب‬ ‫کارپوریٹ اور فنانشل رپورٹنگ فریم ورک‬
‫کمپنی کا اسٹاف اور صارفین‬
‫‪ ،2015‬جس کا اظہار رپورٹنگ فریم ورک کے تحت‬ ‫• مالیاتی حسابات مع ان پر نوٹس کمپنیز ا ٓرڈیننس‬
‫انتظامیہ کمپنی کے اسٹیک ہولڈرز بالخصوص اپنے‬ ‫رضوری ہے‪ ،‬شیرئ ہولڈرز کی معلومات کے منسلکہ‬ ‫‪ 1984‬کے عین مطابق مینجمنٹ کی جانب سے‬
‫صارفین کی اپنی مصنوعات اور رسوسز پر مکمل‬ ‫ضمیمہ میں شامل کردیا گیا ہے۔‬ ‫تیار کئے گئے ہیں۔ یہ حسابات شفاف انداز میں‬
‫اعتامد کے لئے ان کی مشکور ہے۔‬ ‫کمپنی کے رضوری امور‪ ،‬ا ٓپریشنز کے نتائج‪ ،‬کیش‬
‫ڈائریکٹرز‪ ،‬سی ای او‪ ،‬سی ایف او‪ ،‬کمپنی‬ ‫فلو اور ایکویٹی میں تبدیلی کو ظاہر کرتے ہیں۔‬
‫انتظامیہ اس امر پر بھی اپنی خوشی کا اظہار‬ ‫سیکریٹری اور ان کے رشیک حیات و نابالغ بچے‬
‫کرتی ہے کہ کمپنی کے متام مالزمین نے چیلنجنگ‬ ‫سال کے دوران کمپنی کے شیرئز میں کسی قسم‬ ‫• کمپنی کی جانب سے اکائونٹس کی باقاعدہ بکس‬
‫اقتصادی اور کاروباری ماحول میں اپنی غیر‬ ‫کی تجارت میں ملوث نہیں ہے ماسوائے جن کا‬ ‫کو تیار کیا جاتا ہے۔‬
‫معمولی کارکردگی اور انتھک محنت کا اظہار کیا۔‬ ‫تذکرہ اوپر کیا گیا ہے۔‬
‫ہم ان کی کاوشوں‪ ،‬محنت‪ ،‬ایامنداری اور عزم کو‬ ‫• موزوں ترین اکائونٹنگ پالیسیاں مستقل طور پر‬
‫خراج تحسین پیش کرتے ہیں۔‬ ‫مستقبل پر نظر‬ ‫مالیاتی حسابات کی تیاری میں الگو کی جاتی ہیں‬
‫انتظامیہ اس امر پر یقین رکھتی ہے کہ معاشی‬ ‫اور اکائونٹنگ کے تخمینہ جات مناسب اور درست‬
‫رسگرمی مزید بہرتی ظاہر کرے گی کیونکہ‬ ‫فیصلے پر منحرص ہوتے ہیں۔‬
‫اشیائے صارف کی طلب اور کھپت بڑھ رہی ہے‬
‫اور پیکیجنگ مصنوعات کی مانگ میں بھی مزید‬ ‫•بین االقوامی اکائونٹنگ اسٹینڈرڈز‪ ،‬جیسا کہ‬
‫اضافہ ہوگا۔ ‪2016‬کے لئے ڈی فلیشن کے پس‬ ‫پاکستان میں نافذ العمل ہیں‪ ،‬کو مالیاتی حسابات‬
‫منظر پر انتظامی حکمت عملی میں دو ہندسوں‬ ‫کی تیاری کے لئے الگو کیا جاتا ہے۔‬
‫)توفیق حبیب چنائے(‬
‫چیرئمین‬ ‫پر مشتمل ویلیو میٹرک گروتھ کے حصول پر توجہ‬
‫مرکوز کی جائے گی۔ مزید برا ٓں ڈویژن الگت پر‬ ‫•اندرونی کنٹرول کا نظام اپنے ڈیزائن کے اعتبار‬
‫کراچی‪ ،‬فروری ‪2016 ،25‬‬ ‫سے مستحکم ہے اور موثر طور پر نافذ العمل اور‬
‫کنٹرول‪ ،‬پرائس راشنالئزیشن اور پروڈکٹ مکس‬
‫ری االئنمنٹ پر بھی توجہ دینے کا سلسلہ جاری‬ ‫زیر نگرانی ہونے کے ساتھ انٹرنل ا ٓڈٹ فنکشن کے‬
‫رکھے گا۔‬ ‫ذریعے مستقل طور پر اس کا جائزہ لیا جاتا ہے۔‬
‫حفظان صحت کے اصولوں کے بارے میں بڑھتی‬ ‫•کمپنی کی صالحیت کے بارے میں اس حوالےسے‬
‫ہوئی ا ٓگاہی کو مدنظر رکھنے کے باعث ٹشو‬ ‫کوئی شبہ نہیں کہ یہ چلتا ہوا کاروباری ادارہ ہے۔‬
‫)سید حیدر علی(‬
‫چیف ایگزیکٹو و منیجنگ ڈائریکٹر‬ ‫کی مارکیٹ میں قابل قدر گروتھ کی توقع ہے۔‬
‫کمپنی مارکیٹ شیرئ میں اضافے اور مارکیٹ میں‬ ‫• کارپوریٹ گورنینس کے بہرتین طریقہ کار‪ ،‬جیسا‬
‫کراچی‪ ،‬فروری ‪2016 ،25‬‬ ‫کہ لسٹنگ ریگولیشنز میں تفصیل دی گئی ہے کی‬
‫اثرورسوخ بڑھانے کے لئے کئی اقدامات کررہی ہے‬
‫اور اہداف کے مطابق ترقی کے حصول کے لئے‬ ‫کوئی خالف ورزی نہیں کی گئی ہے۔‬
‫‪50‬‬
‫استعفی دیدیا اور ان کی جگہ اسٹورا انیسو‬

‫ٰ‬ ‫نے‬ ‫ روپے ہزاروں میں ‬ ‫ ‬ ‫• فوڈ سیفٹی کمپین‬
‫اے بی نے مسٹر یاری لیٹوانین کو نامزد کیا۔ بورڈ‬ ‫ ‬ ‫سال‪ 2015‬کے لئے‪336.050‬‬ ‫ ‬ ‫• خرسہ کی ا ٓگاہی مہم‬
‫کی خواہش ہے کہ سبکدوش ہونے والے ڈائریکٹر‬ ‫ملین روپے کے ترجیحی منافع‬ ‫ ‬ ‫• ”سب کہہ دو ” مہم‬
‫کی قابل قدر خدمات کو خراج تحسین پیش کرنے‬ ‫منقسمہ ‪/‬منافع کے تناسب‬ ‫ ‬ ‫• ڈینگی سے تحفظ کی مہم‬
‫اور جانے والے ممرب کی جگہ ا ٓفس سنبھالنے والے‬ ‫ ‪ 3,200,163‬‬ ‫کے بعد مجموعی جامع ا ٓمدنی‬ ‫ ‬ ‫• ڈرائیور اور روڈ سیفٹی مہم‬
‫نئے ڈائریکٹر کے لئے خیرمقدمی کلامت ریکارڈ‬ ‫ ‬ ‫غیر مختص شدہ منافع‬
‫کئے جائیں۔‬ ‫کارپوریٹ سوشل ریسپانسیبلیٹی )‪(CSR‬‬
‫ ‪ 514,403‬‬ ‫جو ا ٓئندہ کیلئے شامل کیا گیا‬
‫ ‪ 3,714,566‬‬ ‫تناسب کیلئے دستیاب‬ ‫سی ایس ا ٓر )‪ (CSR‬پر کمپنی کی انتظامیہ نے‬
‫بورڈ آف ڈائریکٹرز کے اجالس‬ ‫مستقل طور پر توجہ دیتے ہوئے تعلیم‪ ،‬ہیلتھ کیرئ‪،‬‬
‫ )‪ (1,500,000‬‬ ‫جرنل ریزرو کے لئے منتقلی‬
‫سال ‪2015‬کے دوران بورڈ کے پانچ (‪ )5‬اجالس‬ ‫ )‪ (1,340,693‬‬ ‫نقد منافع منقسمہ‬ ‫اسکل ڈیولپمنٹ‪ ،‬ماحولیاتی تحفظ اور سامجی‬
‫منعقد کئے گئے اور ہر ایک ڈائریکٹر کی جانب‬ ‫بہبود میں تعاون کا سلسلہ سال رواں بھی جاری‬
‫‪873,873‬‬
‫ ‬ ‫‪ 2016‬کے لئے منتقل کردہ‬
‫سے اجالس میں رشکت کی تفصیل درج ذیل کے‬ ‫رکھا۔‬
‫مطابق ہے۔‬
‫آڈیٹرز‬ ‫بورڈ ا ٓف ڈائریکٹرز کے فیصلے کے مطابق پیکیجز‬
‫ رشکت کردہ ‬ ‫موجودہ ا ٓڈیٹرز میرسز اے ایف فرگوسن اینڈ‬ ‫فائونڈیشن کو ‪12‬جون ‪2015‬کو تشکیل دیا گیا‬
‫ اجالسوں کی ‬ ‫منرب‬ ‫کمپنی چارٹرڈ اکائونٹینٹس سبکدوش ہورہے ہیں اور‬ ‫فائونڈیشن کا بنیادی مقصد صحت‪ ،‬تعلیم اور‬
‫ تعداد ‬ ‫شامر ڈائریکٹر کا نام‬ ‫انہوں نے خود کو دوبارہ تقرری کے لئے پیش کیا‬ ‫دیگر امداد و سامجی مقاصد کے ضمن میں‬
‫ ‪ 4‬‬ ‫ہے۔ انہوں نے انسٹی ٹیوٹ ا ٓف چارٹرڈ اکائونٹینٹس ‪ 1‬جناب توفیق حبیب چنائے‬ ‫معاونت فراہم کرنا ہے۔کمپنی اپنے سامجی کاموں‬
‫ ‬ ‫ )چیرئمین(‬ ‫ا ٓف پاکستان )‪ (ICAP‬کی جانب سے اطمینان بخش‬ ‫کی انجام دہی کے لئے پیکیجز فاونڈیشن کو روپے‬
‫فراہم کرتی رہی۔ کمپنی نے سال‪ 2015‬میںامداد‬
‫ ‪ 5‬‬ ‫ریٹنگ حاصل کی ہے اور انٹرنیشنل فیڈریشن ا ٓف ‪ 2‬سید حیدر علی‬ ‫دیتے ہوئے مختلف کاموں کے لیے ‪ 10.416‬ملین‬
‫ ‬ ‫ )چیف ایگزیکٹو(‬ ‫اکائونٹینٹ کے ضابطہ اخالق پر مشتمل گائیڈ الئنز‬
‫کی مکمل پاسداری کی ہے جو کہ )‪ (ICAP‬کی‬ ‫پاکستانی روپے فراہم کیے۔‬
‫ ‪ 1‬‬ ‫جانب سے رائج کی گئی تھیں جیسا کہ ا ٓڈٹ کمیٹی ‪ 3‬جناب جوزف میرنیڈ میولر‬
‫ ‪ 5‬‬ ‫کی جانب سے تجویز کیا۔ اس کے مطابق بورڈ ا ٓف ‪ 4‬جناب رضوان غنی‬ ‫ریٹائرمنٹ فنڈز‬
‫ ‪ 2‬‬ ‫ جناب ویلی‪-‬جوسی اوالوی پوٹکا‬ ‫ ‪5‬‬ ‫ڈائریکٹرز نے ‪31‬دسمرب ‪2016‬کو ختم ہونے والے‬ ‫کمپنی کی جانب سے موجودہ طور پر تین‬
‫ ‬ ‫) ‪7‬جوالئی ‪2015‬کو مستعفی ہو گئے (‬ ‫سال کے لئے باہمی طور پر طے کردہ معاوضے پر‬ ‫ریٹائرمنٹ فنڈز بنام پراویڈنٹ فنڈ‪ ،‬گریجویٹی فنڈ‬
‫کمپنی کے ا ٓڈیٹرز کی حیثیت سے ان کی دوبارہ‬ ‫اور پینشن فنڈ کو ا ٓپریٹ کیا جارہا ہے۔‬
‫ ‪ 1‬‬ ‫ ‪ 6‬جناب یاری لیٹوانین‬ ‫تقرری کی سفارش کی ہے۔‬
‫ ‬ ‫ ) ‪ 7‬جوالئی ‪ )2015‬کو تقرری ہوئی‬ ‫پراویڈنٹ‪ ،‬گریجویٹی اور پنشن فنڈز کی رسمایہ‬
‫ ‪ 2‬‬ ‫ ‪ 7‬جناب محمد اورنگ زیب‬ ‫کارپوریٹ گورنینس کے ضابطہ پر عملدرآمد‬ ‫کاریوں کی مالیت ‪31‬دسمرب ‪2015‬کو ان کے ا ٓڈٹ‬
‫ ‪ 5‬‬ ‫پاکستان اسٹاک ایکسچینج کی جانب سے ان ‪ 8‬جناب شمیم احمد خان‬ ‫شدہ اکائونٹس کے مطابق درج ذیل تھی۔‬
‫ ‪ 4‬‬ ‫کی لسٹنگ ریگولیشنز میں کارپوریٹ گورنینس ‪ 9‬سید اسلم مہدی‬ ‫‪ 2,131.396‬ملین روپے ‬ ‫پراویڈنٹ فنڈ‬
‫کے ضوابط کی رشائط درج کی گئی ہیں جنہیں‬
‫ ‪ 3‬‬ ‫کمپنی کی جانب سے رائج کیا جاچکا ہے اور ان پر ‪ 10‬سید شاہد علی‬ ‫‪ 362.197‬ملین روپے‬ ‫گریجویٹی فنڈ‬
‫‪ 1,752.322‬ملین روپے ‬ ‫پنشن فنڈ‬
‫ ‪ 4‬‬ ‫باقاعدہ عملدرا ٓمد کیا جارہا ہے۔ اس سلسلے میں ‪ 11‬جناب طارق اقبال خان‬
‫ایک اسٹیٹمنٹ رپورٹ کے ساتھ منسلک ہے۔‬
‫ترصف )‪(Appropriation‬‬
‫بورڈ کے اجالسوں میں رشکت نہ کرپانے والے‬
‫رضوری ترامیم‬ ‫سال ‪2015‬کے لئے کمپنی کے مالیاتی نتائج‬
‫ڈائریکٹرز کو غیر حارضی کے لئے چھٹی منظور‬
‫‪ 31‬دسمرب‪2015‬سے اب تک کوئی رضوری ترامیم‬ ‫ض‬ ‫کے پیش نظر کمپنی کے بورڈ ا ٓف ڈائریکٹرز نے‬
‫کردی گئی تھی۔‬
‫نہیں کی گئیں اور نہ کمپنی نے کوئی نیا معاہدہ‬ ‫‪150‬فیصد نقد منافع منقسمہ (یعنی ‪15‬روپے فی‬
‫کیا ہے جوکہ سال مختتمہ ‪31‬دسمرب ‪2015‬کے لئے‬ ‫شیرئ) کی سفارش کی ہے ل ٰہذا درج ذیل تناسب‬
‫آڈٹ کمیٹی‬
‫کمپنی کے ا ٓڈٹ شدہ مالیاتی حسابات میں درج‬ ‫حاصل کیے گئے۔‬
‫بورڈ کی ایک ا ٓڈٹ کمیٹی کارپوریٹ گورنینس‬
‫کے ضابطہ کے نفاذ سے موجود ہے جو چار نان‪-‬‬ ‫مالیاتی پوزیشن کے عالوہ اس تاریخ تک کسی بھی‬
‫ایگزیکٹو اور ایک ا ٓزاد ڈائریکٹر پر مشتمل ہے۔‬ ‫مالیاتی پوزیشن پر اثر انداز ہوگا۔‬
‫سال ‪2015‬کے دوران ا ٓڈٹ کمیٹی کے چار (‪)4‬‬ ‫بورڈ اور اس کی آڈٹ کمیٹی کی تشکیل میں‬
‫اجالس منعقد ہوئے اور اس میں ہر ایک ڈائریکٹر‬ ‫تبدیلیاں‬
‫کی حارضی درج ذیل کے مطابق رہی‪:‬۔‬ ‫سال ‪2015‬کے دوران فن لینڈ کی اسٹورا انیسو اے‬
‫بی کے نامزد کردہ مسٹر ویلی جوسی اوالوی پوٹکا‬
‫‪51‬‬
Shareholders’ Information
Registered Office Shares Registrar

4th Floor, The Forum FAMCO Associates (Pvt.) Ltd
Suite # 416-422, G-20, Block 9 8-F, Next to Hotel Faran
Khayaban-e-Jami, Clifton Nursery, Block 6, P.E.C.H.S
Karachi-75600 Shahrah-e-Faisal
Tel. # 92 21 35831618 / 35831664 Karachi-75400
35833011 35874047 - 49 Tel. # 92 21 34380101-5
Fax # 92 21 35860251 92 21 34384621-3
Fax # 92 21 34380106
52
Listing on Stock Exchange experienced team of professionals

and is equipped with the necessary
Contact persons:
Packages equity shares are listed on infrastructure in terms of computer Mr. S.M. Munawar Moosvi
the Pakistan Stock Exchange. facilities and comprehensive set Tel. # 92 21 35831618 / 35831664 /
of systems and procedures for 35833011
Listing Fees conducting the Registration function. Fax # 92 21 35860251
The annual listing fee for the financial Mr. Ovais Khan
The Shares Registrar has online
year 2015-16 has been paid to the Tel. # 92 21 34380101-5
connectivity with Central Depository
stock exchange within the prescribed 92 21 34384621-3
Company of Pakistan Limited. It
time limit. Fax # 92 21 34380106
undertakes activities pertaining to
dematerialisation of shares, share
Stock Code transfers, transmissions, issue of
The stock code for dealing in equity duplicate / re-validated dividend
shares of Packages at the Pakistan warrants, issue of duplicate / replaced
Stock Exchange is PKGS. share certificates, change of address
and other related matters.
Shares Registrar
For assistance, shareholders may
Packages’ shares department is contact either the Registered Office or
operated by FAMCO Associates the Shares Registrar.
(Pvt.) Ltd and serves around 3,766
shareholders. It is managed by a well-
Service Standards
Packages has always endeavored to provide investors with prompt services. Listed below are various investor services and
the maximum time limits set for their execution:

For requests received
through post Over the counter

Transfer of shares 30 days after receipt 30 days after receipt
Transmission of shares 30 days after receipt 30 days after receipt
Issue of duplicate share certificates 30 days after receipt 30 days after receipt
Issue of duplicate dividend warrants 5 days after receipt 5 days after receipt
Issue of revalidated dividend warrants 5 days after receipt 5 days after receipt
Change of address 2 days after receipt 15 minutes
Well qualified personnel of the Shares Registrar have been entrusted with the responsibility of ensuring that services are
rendered within the set time limits.
Statutory Compliance
During the year, the Company has complied with all applicable provisions, filed all returns / forms and furnished all the
relevant particulars as required under the Companies Ordinance, 1984 and allied rules, the Securities and Exchange
Commission of Pakistan (SECP) Regulations and the listing requirements.
53
Shareholders’ Information
Dematerialisation of Shares Share Price Movement

(Share price on PSX (Rupees / Share))
Trading Volume
(Volume of share traded on the
The equity shares of the Company are KSE (in thousands))
1,956
under the dematerialisation category.
1,892
800 750
743 2,000
As of date 73.02% of the equity 700 667
1,800
1,634
649 648
shares of the Company have been 632 629 635
603 594
652 576 1,600
600 646 565
dematerialised by the shareholders. 589
542 550 557 1,400
500 519 525 538
511 519
1130
490
1,200
400
Dividend Announcement
938
1,000
300
800
The Board of Directors of the Company
540
200
600
has recommended for the financial
409
231
329
293
175
100 400
year ended December 31, 2015
84
200
payment of cash dividend as follows:- 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Highest Lowest
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
a) to the preference share /

convertible stock holder Dividend Remittance Withholding of Tax & Zakat on
(International Finance
Corporation) at the rate of Rs.
Preference dividend / return will be Ordinary Dividend
paid to the preference / convertible As per the provisions of Section 150
19.00 (10%) per preference share
stockholder prior to payment of of the Income Tax Ordinance, 2001,
/convertible stock of Rs. 190.00
ordinary dividend to the ordinary Income Tax is deductible at source on
in terms of the Subscription
shareholders. dividend payable by the Company at
Agreement between Packages
Limited and International Finance the rate of 12.5% for filers of income
Ordinary dividend declared and tax returns, wherever applicable, and
Corporation (2014: 10% or Rs.
approved at the Annual General at the rate of 17.5% for non-filers of
19.00 per preference share /
Meeting will be paid well before the income tax returns.
convertible stock of Rs. 190.00).
statutory time limit of 30 days:
b) to the ordinary shareholders at Zakat is also deductible at source

a) For shares held in physical form: from the ordinary dividend at the
the rate of 150% (Rs. 15.00 per
to shareholders whose names rate of 2.5% of the face value of the
ordinary share of Rs. 10.00) subject
appear in the Register of Members share, other than corporate holders
to approval by the ordinary
of the company after entertaining or individuals who have provided an
shareholders of the Company
all requests for transfer of shares undertaking for non-deduction.
at the Annual General Meeting
lodged with the Company on or
(2014: cash dividend at the rate
before the book closure date.
of 90% or Rs. 9.00 per ordinary
share). Dividend Warrants
b) For shares held in electronic
Cash dividends are paid through
form: to shareholders whose
Book Closure Dates names appear in the statement of
dividend warrants addressed to the
ordinary shareholders whose names
The Register of Members and Share beneficial ownership furnished by
appear in the Register of Shareholders
Transfer Books of the Company will CDC as at end of business on book
at the date of book closure. Ordinary
remain closed from April 18, 2016 to closure date.
shareholders are requested to deposit
April 25, 2016 both days inclusive.
those warrants into their bank
accounts, at their earliest, thus helping
the Company to clear the unclaimed
dividend account.
54
Break-up Value Per Market Value Per Proxies

Ordinary Share (Rupees) Share (Rupees)
Pursuant to Section 161 of the
600 800
Companies Ordinance, 1984 and
560.68
700 according to the Memorandum and
525.88
500
678.29
Articles of Association of the Company,
479.78
600
every shareholder of the Company
582.11
400
500
who is entitled to attend and vote at
343.89
a general meeting of the Company

326.02
300 400
300.12
300 can appoint another person as his/her

200
proxy to attend and vote instead of
272.63
200
100
him/her. Every notice calling a general
151.16
128.61
100
meeting of the Company contains a
0 0 82.72 statement that a shareholder entitled
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 to attend and vote is entitled to
appoint a proxy. A proxy may not be a
Investors’ Grievances Shareholders having holding of at
least 10% of voting rights may also
member of the Company.
To date none of the investors or apply to the Board of Directors to
shareholders has filed any letter of The instrument appointing a proxy
call for meeting of shareholders, and
complaint against any service provided (duly signed by the shareholder
if the Board does not take action on
by the Company to its shareholders. appointing that proxy) should be
such application within 21 days, the
deposited at the office of the Company
shareholders may themselves call the
not less than forty-eight (48) hours
Legal Proceedings meeting.
before the meeting.
No case has ever been filed by
All ordinary shares issued by the
shareholders against the company for
non-receipt of shares / refund.
Company carry equal voting rights. Web Presence
Generally, matters at the general Updated information regarding the
meetings are decided by a show of Company can be accessed at Packages
General Meetings & Voting hands in the first instance. Voting website, www.packages.com.pk. The
Rights by show of hands operates on the website contains the latest financial
principle of “One Member-One Vote”. results of the Company together with
Pursuant to section 158 of the If majority of shareholders raise Company’s profile, the corporate
Companies Ordinance, 1984, Packages their hands in favor of a particular philosophy and major products.
Limited holds a General Meeting of resolution, it is taken as passed, unless
shareholders at least once a year. Every a poll is demanded.
shareholder has a right to attend the
General Meeting. The notice of such Since the fundamental voting principle
meeting is sent to all the shareholders in a Company is “One Share-One
at least 21 days before the meeting Vote”, voting takes place by a poll, if
and also advertised in at least one demanded. On a poll being taken,
English and one Urdu newspaper the decision arrived by poll is final,
having circulation in Karachi, Lahore overruling any decision taken on a
and Islamabad. show of hands.
55
Pattern of Shareholding
The shareholding pattern of the equity share capital of the Company as at December 31, 2015 is as follows:
Shareholding Number of Total Shareholding Number of Total

From To shareholders shares held From To shareholders shares held

275,001 280,000 1 276,734
1 100 1,835 37,096
285,001 290,000 1 287,290
101 500 715 204,129
300,001 305,000 2 608,597
501 1,000 310 242,800
305,001 310,000 1 307,820
1,001 5,000 503 1,178,820
325,001 330,000 1 326,252
5,001 10,000 125 914,974
345,001 350,000 1 350,000
10,001 15,000 56 684,018
385,001 390,000 1 389,000
15,001 20,000 27 480,798
390,001 395,000 1 393,000
20,001 25,000 24 549,462
400,001 405,000 1 403,055
25,001 30,000 21 588,310
410,001 415,000 1 414,100
30,001 35,000 13 424,180
440,001 445,000 1 440,806
35,001 40,000 11 418,972
450,001 455,000 1 451,801
40,001 45,000 15 637,301
505,001 510,000 1 509,200
45,001 50,000 8 385,009
530,001 535,000 1 533,853
50,001 55,000 7 367,096
535,001 540,000 1 535,373
55,001 60,000 5 289,248
555,001 560,000 1 556,000
60,001 65,000 2 124,167
615,001 620,000 1 616,300
65,001 70,000 5 340,732
635,001 640,000 1 639,935
70,001 75,000 1 70,638
665,001 670,000 1 666,879
75,001 80,000 1 76,413
685,001 690,000 1 689,078
80,001 85,000 2 161,588
695,001 700,000 1 697,603
90,001 95,000 3 274,176
820,001 825,000 1 821,714
95,001 100,000 7 689,066
860,001 865,000 2 1,726,137
100,001 105,000 2 202,100
895,001 900,000 1 897,750
105,001 110,000 2 214,691
965,001 970,000 1 968,500
110,001 115,000 2 226,859
990,001 995,000 1 990,641
125,001 130,000 2 252,183
1,015,001 1,020,000 1 1,016,263
130,001 135,000 1 133,636
1,195,001 1,200,000 1 1,198,668
135,001 140,000 1 136,999
1,660,001 1,665,000 1 1,660,479
150,001 155,000 2 302,950
1,790,001 1,795,000 1 1,791,159
155,001 160,000 3 478,098
2,070,001 2,075,000 1 2,075,000
160,001 165,000 1 161,746
2,285,001 2,290,000 1 2,287,175
165,001 170,000 1 166,150
3,095,001 3,100,000 1 3,097,030
180,001 185,000 1 184,000
3,160,001 3,165,000 1 3,160,607
185,001 190,000 1 185,850
3,255,001 3,260,000 1 3,256,676
190,001 95,000 1 193,484
3,915,001 3,920,000 1 3,917,505
195,001 200,000 3 595,584
4,240,001 4,245,000 1 4,240,078
205,001 210,000 1 206,609
4,850,001 4,855,000 1 4,851,903
220,001 225,000 1 221,210
5,395,001 5,400,000 1 5,396,650
255,001 260,000 1 259,300
21,130,001 21,135,000 1 21,133,101
265,001 270,000 1 265,960
270,001 275,000 1 273,390
TOTAL 3,766 88,379,504
56
Information
as required under the Code of Corporate Governance
Number of Number of
Shareholders’ category shareholders shares held
i. Associated Companies, Undertakings and Related Parties (name wise details)

GURMANI FOUNDATION 1 1,198,668
IGI INSURANCE LIMITED 2 21,522,101
BABAR ALI FOUNDATION 1 3,097,030
PACKAGES LIMITED EMPLOYEES’ GRATUITY FUND 2 104,494
PACKAGES LIMITED EMPLOYEES’ PROVIDENT FUND 2 2,067,893
PACKAGES LIMITED MANAGEMENT STAFF PENSION FUND 2 660,036
Total: 10 28,650,222
ii. Mutual Funds (name wise details)

CDC - TRUSTEE ABL ISLAMIC PENSION FUND - EQUITY SUB FUND 1 1,800
CDC - TRUSTEE ABL PENSION FUND - EQUITY SUB FUND 1 700
CDC - TRUSTEE ABL STOCK FUND 1 126,000
CDC - TRUSTEE AKD INDEX TRACKER FUND 1 6,539
CDC - TRUSTEE AL MEEZAN MUTUAL FUND 1 689,078
CDC - TRUSTEE AL-AMEEN SHARIAH STOCK FUND 1 897,750
CDC - TRUSTEE ALFALAH GHP ALPHA FUND 1 28,500
CDC - TRUSTEE ALFALAH GHP ISLAMIC STOCK FUND 1 10,600
CDC - TRUSTEE ALFALAH GHP STOCK FUND 1 45,000
CDC - TRUSTEE APF-EQUITY SUB FUND 1 7,500
CDC - TRUSTEE APIF - EQUITY SUB FUND 1 11,000
CDC - TRUSTEE ASKARI ASSET ALLOCATION FUND 1 35,000
CDC - TRUSTEE ASKARI EQUITY FUND 1 33,000
CDC - TRUSTEE ATLAS ISLAMIC STOCK FUND 1 50,000
CDC - TRUSTEE ATLAS STOCK MARKET FUND 1 70,000
CDC - TRUSTEE FAYSAL ISLAMIC ASSET ALLOCATION FUND 1 15,000
CDC - TRUSTEE FIRST CAPITAL MUTUAL FUND 1 7,400
CDC - TRUSTEE FIRST HABIB STOCK FUND 1 9,300
CDC - TRUSTEE HBL - STOCK FUND 1 160,000
CDC - TRUSTEE HBL IPF EQUITY SUB FUND 1 9,400
CDC - TRUSTEE HBL MULTI - ASSET FUND 1 27,150
CDC - TRUSTEE HBL PF EQUITY SUB FUND 1 8,450
CDC - TRUSTEE MCB PAKISTAN ASSET ALLOCATION FUND 1 185,850
CDC - TRUSTEE MCB PAKISTAN ISLAMIC STOCK FUND 1 80,500
CDC - TRUSTEE MCB PAKISTAN STOCK MARKET FUND 1 861,250
CDC - TRUSTEE MEEZAN BALANCED FUND 1 535,373
CDC - TRUSTEE MEEZAN ISLAMIC FUND 1 4,851,903
CDC - TRUSTEE MEEZAN TAHAFFUZ PENSION FUND - EQUITY SUB FUND 1 451,801
CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST 1 4,240,078
CDC - TRUSTEE NIT ISLAMIC EQUITY FUND 1 95,800
CDC - TRUSTEE NIT-EQUITY MARKET OPPORTUNITY FUND 1 29,982
CDC - TRUSTEE PAKISTAN CAPITAL MARKET FUND 1 53,150
CDC - TRUSTEE PAKISTAN SARMAYA MEHFOOZ FUND 1 43,600
CDC - TRUSTEE UBL RETIREMENT SAVINGS FUND - EQUITY SUB FUND 1 53,650
CDC - TRUSTEE UBL STOCK ADVANTAGE FUND 1 393,000
CDC - TRUSTEE AL-AMEEN ISLAMIC RET. SAV. FUND-EQUITY SUB FUND 1 42,800
CDC - TRUSTEE FIRST HABIB ISLAMIC BALANCED FUND 1 6,100
57
Number of Number of
Shareholders’ category shareholders shares held
CDC - TRUSTEE HBL ISLAMIC STOCK FUND 1 49,800

CDC - TRUSTEE PAK. INT. ELEMENT ISLAMIC ASSET ALLOCATION FUND 1 69,400
MCFSL - TRUSTEE ASKARI ISLAMIC ASSET ALLOCATION FUND 1 27,000
MCBFSL - TRUSTEE ABL ISLAMIC STOCK FUND 1 166,150
Total: 41 14,486,354
iii. Directors and their spouse(s) and minor children (name wise details)
MUHAMMAD AURANGZEB 1 500
RIZWAN GHANI 1 100
SHAMIM AHMAD KHAN 1 603
SYED ASLAM MEHDI 1 9,781
SYED HYDER ALI 1 2,287,175
SYED SHAHID ALI SHAH 1 2,000
TOWFIQ HABIB CHINOY 1 50,071
Total: 7 2,350,230
iv. Executives 11 5,009,125

v. Public Sector Companies and Corporations 3 4,739,419

vi. Banks, Development Finance Institutions, Non-Banking Finance
Institutions, Insurance Companies, Takaful, Modaraba and Pension Funds 35 4,487,790

vii. Shareholders holding five percent or more voting rights in the Listed
Company (name wise details)
CDC - TRUSTEE MEEZAN ISLAMIC FUND 1 4,851,903
IGI INSURANCE LIMITED 1 21,133,101
STORA ENSO AB 1 5,396,650
Total: 3 31,381,654
58
No. of No. of
Shareholders’ category shareholders shares Percentage
1 Directors, Chief Executive Officer, and their

spouses and minor children 7 2,350,230 2.66
2 Associated Companies, undertakings and

related parties 10 28,650,222 32.42
3 Banks Development Financial Institutions, Non

Banking Financial Institutions 18 2,718,747 3.08
4 Insurance Companies 13 5,940,048 6.72

5 Modarabas and Mutual Funds 43 14,487,113 16.39
6 Shareholder holding 10% 1 21,133,101 23.91
7 General Public:
a. Local 3,539 19,492,471 22.05
b. Foreign 6 7,008,339 7.93
8 Others 130 7,732,334 8.75
Total (excluding: shareholder holding 10%) 3,766 88,379,504 100.00
Share Price and Volume

The monthly high and low prices and the volume of shares traded on the Stock Exchange during the financial year 2015 are
as under:
Share price on Volume of shares

the PSX (Rs.) traded
Month Highest Lowest
January 750.00 652.00 937,650

February 742.99 646.00 84,450
March 648.95 490.39 292,550
April 602.59 542.10 1,892,250
May 576.00 519.10 175,100
June 631.85 550.00 539,550
July 667.00 589.00 230,650
August 628.90 525.00 1,634,100
September 594.00 511.05 329,200
October 564.99 519.25 408,600
November 648.00 538.00 1,956,350
December 634.50 556.50 1,130,150
59
Statement of Compliance
With the Code of Corporate Governance for the year ended December 31, 2015
This statement is being presented to comply with the 5. The Company has prepared a “Code of Conduct” and
Code of Corporate Governance (the “Code”) contained in has ensured that appropriate steps have been taken to
Regulation No 5.19 of the Pakistan Stock Exchange for the disseminate it throughout the Company along with its
purpose of establishing a framework of good governance, supporting policies and procedures.
whereby a listed company is managed in compliance with
the best practices of corporate governance. 6. The Board has developed a Vision / Mission Statement,
overall corporate strategy and significant policies of
The Company has applied the principles contained in the the Company. A complete record of particulars of
Code in the following manner: significant policies along with the dates on which they
were approved or amended has been maintained.
1. The Company encourages representation of
independent non-executive directors and directors 7. All the powers of the Board have been duly exercised
representing minority interests on its Board of and decisions on material transactions, including
Directors. At present the Board includes: appointment and determination of remuneration and
terms and conditions of employment of the CEO, other
Category Names executive and Non-Executive Directors, have been
Independent Director Mr. Muhammad taken by the Board.
Aurangzeb
8. The meetings of the Board were presided over by the
Executive Directors Syed Hyder Ali Chairman and, in his absence, by a Director elected
Mr. Rizwan Ghani by the Board for this purpose and the Board met at
least once in every quarter. Written notices of the
Non-Executive Directors Mr. Towfiq Habib Chinoy Board meetings, along with agenda and working
Mr. Josef Meinrad Mueller papers, were circulated at least seven days before
Syed Aslam Mehdi the meetings. The minutes of the meetings were
Mr. Shamim Ahmad Khan appropriately recorded and circulated.
Syed Shahid Ali
Mr. Tariq Iqbal Khan 9. The Company arranged one orientation course
Mr. Jari Latvanen for its Directors during the year to apprise them of
their duties and responsibilities. As per clause 5.19.7
of the Code, eight directors meet the certification
The Independent Director meets the criteria of requirements, while the remaining two directors need
independence under clause 5.19.1 (b) of the Code. to obtain the certification under the directors training
program which meets the criteria specified by the
2. The Directors have confirmed that none of them Securities and Exchange Commission of Pakistan by
is serving as a director on more than seven listed June 2016.
companies, including this Company (excluding the
listed subsidiaries of listed holding companies). 10. The Board had approved appointment of CFO,
Company Secretary and Head of Internal Audit,
3. All the resident directors of the Company are including their remuneration and terms and conditions
registered as taxpayers and none of them has of employment as determined by the CEO. No new
defaulted in payment of any loan to a banking appointments of CFO, Company Secretary and Head of
company, a DFI or an NBFI or, being a member of stock Internal Audit have been made during the year.
exchange, has been declared as a defaulter by that
stock exchange. 11. The Directors’ Report for this year has been prepared
in compliance with the requirements of the Code
4. A casual vacancy that occurred on the Board on July 7, and fully describes the salient matters required to be
2015 was filled up by the Directors on the same day. disclosed.
60
12. The financial statements of the Company were duly 21. The ‘closed period’, prior to the announcement
endorsed by CEO and CFO before approval of the of interim / final results, and business decisions,
Board. which may materially affect the market price of the
Company’s securities, was determined and intimated
13. The Directors, CEO and executives do not hold any to directors, employees and stock exchange.
interest in the shares of the Company other than that
disclosed in the pattern of shareholding. 22. Material / price sensitive information has been
disseminated among all market participants at once
14. The Company has complied with all the corporate and through stock exchange.
financial reporting requirements of the Code.
23. We confirm that all other material principles enshrined
15. The Board has formed an Audit Committee. It in the Code have been complied with.
comprises of five members including one Independent
Director and four Non-executive Directors, including
the Chairman.
16. The meetings of the Audit Committee were held at

least once every quarter prior to approval of interim
and final results of the Company as required by the
Code. The terms of reference of the Committee have
been formed and advised to the Committee for
compliance. (Towfiq Habib Chinoy)
Chairman
17. The Board has formed a Human Resource and Karachi, February 25, 2016
Remuneration Committee. It comprises of five
members, of whom four are non-executive directors,
including the Chairman.
18. The Board has set up an effective internal audit

function manned by suitably qualified and
experienced personnel for the purpose and are
conversant with the policies and procedures of the
Company.
19. The statutory auditors of the Company have confirmed

that they have been given a satisfactory rating under
the quality control review program of the ICAP, that
they or any of the partners of the firm, 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 the ICAP.
20. 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.
61
Review Report to the Members
on the Statement of Compliance with the Code of Corporate Governance
We have reviewed the enclosed Statement of Compliance price and recording proper justification for using such
with the best practices contained in the Code of Corporate alternate pricing mechanism. We are only required and
Governance (‘the Code’) prepared by the Board of Directors have ensured compliance of requirement to the extent of
of Packages Limited (‘the Company’) for the year ended approval of the related party transactions by the Board of
December 31, 2015 to comply with the Listing Regulation Directors upon recommendation of the Audit Committee.
No. 5.19 of the Pakistan Stock Exchange, where the We have not carried out any procedures to determine
Company is listed. whether the related party transactions were undertaken at
arm›s length price or not.
The responsibility for compliance with the Code is that of
the Board of Directors of the Company. Our responsibility Based on our review, nothing has come to our attention
is to review, to the extent where such compliance can be which causes us to believe that the Statement of
objectively verified, whether the Statement of Compliance Compliance does not appropriately reflect the Company’s
reflects the status of the Company’s compliance with the compliance, in all material respects, with the best practices
provisions of the Code and report if it does not and to contained in the Code as applicable to the Company for the
highlight any non-compliance with the requirements of year ended December 31, 2015.
the Code. A review is limited primarily to inquiries of the
Company’s personnel and review of various documents
prepared by the Company to comply with the Code.
As a 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. We are not required
to consider whether the Board of Directors’ statement on
internal control covers all risks and controls, or to form an A.F. Ferguson & Co.
opinion on the effectiveness of such internal controls, the Chartered Accountants
Company’s corporate governance procedures and risks. Lahore, March 11, 2016
The Code requires the Company to place before the Name of engagement partner:
Audit Committee, and upon recommendation of Audit Asad Aleem Mirza
Committee, place before the Board of Directors for
their review and approval its related party transactions
distinguishing between transactions carried out on terms
equivalent to those that prevail in arm’s length transactions
and transactions which are not executed at arm’s length
62
AUDITORS’ REPORT TO THE MEMBERS
We have audited the annexed (a) in our opinion, proper statement of changes
balance sheet of Packages books of account have been in equity and cash flow
Limited as at December 31, kept by the Company as statement together with
2015 and the related profit required by the Companies the notes forming part
and loss account, statement Ordinance, 1984; thereof conform with
of comprehensive income, approved accounting
statement of changes in equity (b) in our opinion standards as applicable
and cash flow statement, in Pakistan, and, give
(i) the balance sheet and
together with the notes forming the information required
profit and loss account
part thereof, for the year then by the Companies
together with the notes
ended and we state that we have Ordinance, 1984, in the
thereon have been
obtained all the information and manner so required and
drawn up in conformity
explanations which, to the best respectively give a true
with the Companies
of our knowledge and belief, and fair view of the state
Ordinance, 1984,
were necessary for the purposes of the Company’s affairs
and are in agreement
of our audit. as at December 31,
with the books of
2015 and of the profit,
It is the responsibility of the account and are
total comprehensive
Company’s management further in accordance
income, changes in
to establish and maintain a with accounting
equity and its cash flows
system of internal control, and policies consistently
for the year then ended;
prepare and present the above applied except for the
and
said statements in conformity changes resulted on
with the approved accounting initial application of
(d) in our opinion Zakat
standards and the requirements standards, amendments,
deductible at source
of the Companies Ordinance, or an interpretation to
under the Zakat and Ushr
1984. Our responsibility is to the existing standards
Ordinance, 1980, was
express an opinion on these as stated in note 2.2.1
deducted by the Company
statements based on our audit. to the annexed financial
and deposited in the Central
statements, with which
Zakat Fund established
We conducted our audit in we concur;
under section 7 of that
accordance with the auditing
(ii) the expenditure Ordinance.
standards as applicable in
Pakistan. These standards incurred during the year
require that we plan and was for the purpose
perform the audit to obtain of the Company’s
reasonable assurance about business; and
whether the above said
(iii) the business conducted,
statements are free of any
investments made
material misstatement. An audit
and the expenditure
includes examining, on a test
incurred during the A.F. Ferguson & Co.
basis, evidence supporting the
year were in accordance Chartered Accountants
amounts and disclosures in
with the objects of the Lahore, March 11, 2016
the above said statements. An
Company;
audit also includes assessing
the accounting policies and (c) in our opinion and Name of engagement partner:
significant estimates made to the best of our Asad Aleem Mirza
by management, as well information and
as, evaluating the overall according to the
presentation of the above said explanations given
statements. We believe that our to us, the balance
audit provides a reasonable sheet, profit and loss
basis for our opinion and, after account, statement of
due verification, we report that: comprehensive income,
63
64
Financial Statements
For the year ended December 31, 2015
65
BALANCE SHEET
as at December 31, 2015
(Rupees in thousand) Note 2015 2014
EQUITY AND LIABILITIES
CAPITAL AND RESERVES

Authorised capital
150,000,000 (2014: 150,000,000) ordinary shares of Rs. 10 each 1,500,000 1,500,000
22,000,000 (2014: 22,000,000) 10% non-voting
preference shares / convertible stock of Rs. 190 each 4,180,000 4,180,000

Issued, subscribed and paid up capital
88,379,504 (2014: 86,379,504) ordinary shares of Rs. 10 each 5 883,795 863,795
Reserves 6
41,878,330 44,766,414
Preference shares / convertible stock reserve 7 1,309,682 1,571,699
Accumulated profit 3,714,566 2,800,819
47,786,373 50,002,727
NON-CURRENT LIABILITIES

Long term finances 7 3,729,181 4,228,815
Liabilities against assets subject to finance lease 8 27,653 25,685
Deferred tax 9 246,120 292,841
Retirement benefits 10 40,425 –
Deferred liabilities 11 201,576 174,581
4,244,955 4,721,922
CURRENT LIABILITIES

Current portion of long term liabilities 12 392,285 204,696
Finances under mark up arrangements - secured 13 884,481 1,262,596
Trade and other payables 14 3,278,124 3,144,680
Accrued finance costs 15 349,282 517,634
4,904,172 5,129,606

CONTINGENCIES AND COMMITMENTS 16 – –
56,935,500 59,854,255
66
ASSETS
NON-CURRENT ASSETS

Property, plant and equipment 17 3,804,477 3,685,677
Investment property 18 155,426 137,787
Intangible assets 19 20,729 37,652
Investments 20 44,997,518 47,304,365
Long term loans and deposits 21 39,247 52,558
Retirement benefits 10 - 87,881
49,017,397 51,305,920

CURRENT ASSETS
Stores and spares 22 488,061 492,967

Stock-in-trade 23 1,780,177 2,230,500
Trade debts 24 1,781,022 1,527,372
Loans, advances, deposits, prepayments and other receivables 25 1,346,088 1,797,214
Income tax receivable 26 2,421,015 2,247,790
Cash and bank balances 27 101,740 252,492
7,918,103 8,548,335
56,935,500 59,854,255
The annexed notes 1 to 47 form an integral part of these financial statements.
Towfiq Habib Chinoy Syed Hyder Ali Rizwan Ghani

Chairman Chief Executive & Managing Director Director
67
PROFIT AND LOSS ACCOUNT
for the year ended December 31, 2015
Local sales 18,682,977 17,581,898

Export sales 28,321 45,460
18,711,298 17,627,358
Less: Sales tax and excise duty 2,657,232 2,515,545

Commission 29,089 24,463
2,686,321 2,540,008
Net sales 16,024,977 15,087,350
Cost of sales 28 (12,663,569) (12,872,825)
Gross profit
3,361,408 2,214,525
Administrative expenses 29 (752,730) (787,249)

Distribution and marketing costs 30 (677,944) (580,062)
Other operating expenses 31 (347,105) (221,968)
Other income 32 244,022 322,147
Profit from operations 1,827,651 947,393
Finance costs 33 (643,032) (751,551)

Investment income 34 2,617,891 2,553,678
Profit before tax 3,802,510 2,749,520

Tax 35 (507,094) (213,216)
Profit for the year 3,295,416 2,536,304
Earnings per share

Basic Rupees 43 37.42 29.89
Diluted Rupees 43 33.62 26.59

68
STATEMENT OF COMPREHENSIVE INCOME

(Rupees in thousand) 2015 2014

Other comprehensive income:

Items that will not be reclassified to profit or loss

Remeasurement of retirement benefits liability / asset (136,067) 82,823
Tax effect 40,814 (28,988)
(95,253) 53,835

Items that may be reclassified subsequently to profit or loss

(Deficit) / surplus on remeasurement of available
for sale financial assets (4,744,022) 5,656,334
Other comprehensive (loss) / income for the year - net of tax (4,839,275) 5,710,169

Total comprehensive (loss) / income for the year
(1,543,859) 8,246,473


69
STATEMENT OF CHANGES IN EQUITY
Preference
shares /
Share Share Fair value General convertible Accumulated
(Rupees in thousand) capital premium reserve reserve stock reserve profit Total
Balance as on December 31, 2013 843,795 2,876,893 23,566,916 11,610,333 1,605,875 1,585,716 42,089,528
Appropriation of funds
Transferred to general reserve account - - - 700,000 - (700,000) -
Total transactions with owners, recognised directly in equity
Final dividend for the year ended December 31, 2013

Rs. 8.00 per share - - - - - (675,036) (675,036)
Conversion of preference shares / convertible stock into
ordinary share capital (2,000,000 ordinary shares
of Rs. 10 each) 20,000 355,938 - - (34,176) - 341,762
20,000 355,938 - - (34,176) (675,036) (333,274)

Total comprehensive income for the year ended
December 31, 2014
Profit for the year - - - - - 2,536,304 2,536,304

Surplus on remeasurement of available for sale financial assets - - 5,656,334 - - - 5,656,334
Remeasurement of retirement benefit asset / liability - net of tax - - - - - 53,835 53,835
Total comprehensive income for the year - - 5,656,334 - - 2,590,139 8,246,473
Transferred to general reserve account - - - 1,500,000 - (1,500,000) -

Rs. 9.00 per share - - - - - (786,416) (786,416)
of Rs. 10 each) 20,000 355,938 - - (262,017) - 113,921
20,000 355,938 - - (262,017) (786,416) (672,495)

December 31, 2015
Profit for the year - - - - - 3,295,416 3,295,416

Deficit on remeasurement of available for sale financial assets - - (4,744,022) - - - (4,744,022)
Remeasurement of retirement benefit asset / liability - net of tax - - - - - (95,253) (95,253)
Total comprehensive (loss) / income for the year - - (4,744,022) - - 3,200,163 (1,543,859)



70
CASH FLOW STATEMENT

Cash flows from operating activities
Cash generated from operations 41 3,182,034 1,432,406

Finance cost paid (811,384) (764,241)
Taxes paid (686,226) (535,873)
Payments for accumulating compensated absences (23,533) (17,079)
Retirement benefits paid (15,329) (13,450)
Net cash generated from operating activities

1,645,562 101,763

Cash flows from investing activities
Fixed capital expenditure (713,480) (629,738)

Investments - net (2,437,175) (600,000)
Net decrease in long term loans and deposits 13,311 14,448
Proceeds from disposal of property, plant and equipment 91,023 106,792
Dividends received 2,617,891 2,553,678
Net cash (used in) / generated from investing activities (428,430) 1,445,180

Cash flows from financing activities
Repayment of long term finances - secured (200,000) (600,000)

Liabilities against assets subject to finance lease - net (7,038) (3,599)
Dividend paid (782,731) (671,684)
Net cash used in financing activities (989,769) (1,275,283)
Net increase in cash and cash equivalents

227,363 271,660
Cash and cash equivalents at the beginning of the year (1,010,104) (1,281,764)
Cash and cash equivalents at the end of the year 42

(782,741) (1,010,104)


71
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
1. Legal status and nature of business
Packages Limited (‘the Company’) is a public limited company incorporated in Pakistan and is listed on Pakistan
Stock Exchange. It is principally engaged in the manufacture and sale of packaging materials and tissue products.
The registered office of the Company is situated at 4th Floor, the Forum, Suite No. 416 - 422, G-20, Block 9,
Khayaban-e-Jami, Clifton, Karachi, Pakistan. Head office and factory is located at Shahrah-e-Roomi, P.O. Amer
Sidhu, Lahore, Pakistan.

The Company also holds investment in companies engaged in the manufacture and sale of inks, flexible
packaging material, paper, paperboard and corrugated boxes, biaxially oriented polypropylene (BOPP) film and
cast polypropylene (CPP) film, and companies engaged in insurance and real estate business.

2. Basis of preparation
2.1 These financial statements have been prepared in accordance with the requirements of the Companies Ordinance,
1984 (‘the Ordinance’) and the approved accounting standards as applicable in Pakistan. Approved accounting
standards comprise of such International Financial Reporting Standards (IFRS) issued by the International
Accounting Standards Board and Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered
Accountants of Pakistan as are notified under the Companies Ordinance, 1984, provisions of and directives
issued under the Companies Ordinance, 1984. Wherever the requirements of the Companies Ordinance, 1984
or directives issued by Securities and Exchange Commission of Pakistan differ with the requirements of IFRS or
IFAS, the requirements of the Companies Ordinance, 1984 or the requirements of the said directives prevail.

2.2 Initial application of standards, amendments or an interpretation to existing standards
The following amendments to existing standards have been published that are applicable to the Company’s
financial statements covering annual periods, beginning on or after the following dates:
2.2.1 Amendments to published standards effective in current year
New and amended standards and interpretations mandatory for the first time for the financial year beginning
January 01, 2015:
Annual improvements 2012 are applicable for annual periods beginning on or after July 01, 2014. These
amendments include changes from the 2010-12 cycle of the annual improvements project, that affect 7
standards: IFRS 2, ‘Share-based payment’, IFRS 3, ‘Business Combinations’, IFRS 8, ‘Operating segments’,
IFRS 13, ‘Fair value measurement’, IAS 16, ‘Property, plant and equipment’ and IAS 38, ‘Intangible assets’,
Consequential amendments to IFRS 9, ‘Financial instruments’, IAS 37, ‘Provisions, contingent liabilities and
contingent assets’, and IAS 39, ‘Financial instruments – Recognition and measurement’. The application of these
amendments has no material impact on the Company’s financial statements.

Annual improvements 2013 are applicable for annual periods beginning on or after July 01, 2014. The amendments
include changes from the 2011-13 cycle of the annual improvements project that affect 4 standards: IFRS 1,
‘First time adoption’, IFRS 3, ‘Business combinations’, IFRS 13, ‘Fair value measurement’ and IAS 40, ‘Investment
property’. The application of these amendments has no material impact on the Company’s financial statements.

IAS 19 (Amendments), ‘Employee benefits’ is applicable on accounting periods beginning on or after July 01,
2014. These amendments apply to contributions from employees or third parties to defined benefit plans. The
objective of the amendments is to simplify the accounting for contributions that are independent of the number
of years of employee service, for example, employee contributions that are calculated according to a fixed
percentage of salary. The application of these amendments has no material impact on the Company’s financial
statements.

IFRS 10, ‘Consolidated financial statements’ is applicable on accounting periods beginning on or after January
01, 2015. This standard builds on existing principles by identifying the concept of control as the determining
factor in whether an entity should be included within the consolidated financial statements. The standard
provides additional guidance to assist in determining control where this is difficult to assess. The application of
this standard has no material impact on the Company’s financial statements.
72
IFRS 11, ‘Joint arrangements’ is applicable on accounting periods beginning on or after January 01, 2015. IFRS
11 is a more realistic reflection of joint arrangements by focusing on the rights and obligations of the parties
to the arrangement rather than its legal form. There are two types of joint arrangements: joint operations and
joint ventures. Joint operations arise where a joint operator has rights to the assets and obligations relating to
the arrangement and therefore accounts for its share of assets, liabilities, revenue and expenses. Joint ventures
arise where the joint operator has rights to the net assets of the arrangement and therefore equity accounts for
its interest. Proportional consolidation of joint ventures is no longer allowed. The application of this standard
has no material impact on the Company’s financial statements.

IFRS 12, ‘Disclosures of interests in other entities’ is applicable on accounting periods beginning on or after
January 01, 2015. This standard includes the disclosure requirements for all forms of interests in other entities,
including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. The
application of this standard has no material impact on the Company’s financial statements.

Amendments to IFRS 10, 11 and 12 on transition guidance are applicable on accounting periods beginning on
or after January 01, 2015. These amendments also provide additional transition relief in IFRS 10, 11 and 12,
limiting the requirement to provide adjusted comparative information to only the preceding comparative period.
For disclosures related to unconsolidated structured entities, the amendments will remove the requirement to
present comparative information for periods before IFRS 12 is first applied. The application of these amendments
has no material impact on the Company’s financial statements.

Amendments to IFRS 10, 11 and IAS 27 on consolidation for investment entities are applicable on accounting
periods beginning on or after January 01, 2015. These amendments mean that many funds and similar entities
will be exempt from consolidating most of their subsidiaries. Instead, they will measure them at fair value
through profit or loss. The amendments give an exception to entities that meet an ‘investment entity’ definition
and which display particular characteristics. Changes have also been made in IFRS 12, ‘Disclosures of interests
in other entities’ to introduce disclosures that an investment entity needs to make. The application of these
amendments has no material impact on the Company’s financial statements.

IFRS 13, ‘Fair value measurement’ is applicable on accounting periods beginning on or after January 01, 2015.
This standard aims to improve consistency and reduce complexity by providing a precise definition of fair value
and a single source of fair value measurement and disclosure requirements for use across IFRS. The requirements,
which are largely aligned between IFRS and US GAAP, do not extend the use of fair value accounting but provide
guidance on how it should be applied where its use is already required or permitted by other standards within
IFRS or US GAAP. The application of this standard has no material impact on the Company’s financial statements
expect for certain additional fair value disclosures as provided in note 44.4.

2.2.2 Standards, amendments and interpretations to existing standards that are not yet effective and have not
been early adopted by the Company
The following amendments and interpretations to existing standards have been published and are mandatory
for the Company’s accounting periods beginning on or after January 01, 2016 or later periods, but the Company
has not early adopted them:

Annual improvements 2014 are applicable for annual periods beginning on or after January 01, 2016. The
amendments include changes from the 2012-14 cycle of the annual improvements project that affect 4 standards:
IFRS 5, ‘Non current assets held for sale and discontinued operations’ regarding methods of disposal, IFRS 7,
‘Financial instruments: Disclosures’ with consequential amendments to IFRS 1 regarding servicing contracts, IAS
19, ‘Employee benefits’ regarding discount rates and IAS 34, ‘Interim financial reporting’ regarding disclosure
of information. The Company shall apply these amendments from January 01, 2016 and does not expect to have
a material impact on its financial statements.

Amendments to IAS 16, ‘Property, plant and equipment’ and IAS 41, ‘Agriculture’, regarding bearer plants
are applicable on accounting periods beginning on or after January 01, 2016. These amendments change
the financial reporting for bearer plants, such as grape vines, rubber trees and oil palms. The IASB decided
73
that bearer plants should be accounted for in the same way as property, plant and equipment because their
operation is similar to that of manufacturing. Consequently, the amendments include them within the scope of
IAS 16 instead of IAS 41. The produce growing on bearer plants will remain within the scope of IAS 41. These
amendments do not have a material impact on the Company’s financial statements.

Amendments to IAS 16, ‘Property, plant and equipment’ and IAS 38, ‘Intangible assets’ are applicable on
accounting periods beginning on or after January 01, 2016. IASB has clarified that the use of revenue based
methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity
that includes the use of an asset generally reflects factors other than the consumption of the economic benefits
embodied in the asset. The IASB has also clarified that revenue is generally presumed to be an inappropriate
basis for measuring the consumption of the economic benefits embodied in an intangible asset. The Company
shall apply these amendments from January 01, 2016 and does not expect to have a material impact on its
financial statements.

IAS 27 (Amendments), ‘Separate financial statements’ are applicable on accounting periods beginning on or
after January 1, 2016. These provide entities the option to use the equity method to account for investments in
subsidiaries, joint ventures and associates in their separate financial statements. The Company shall apply these
amendments from January 01, 2016 and has not yet evaluated whether it shall change its accounting policy to
avail this option.
IFRS 9, ‘Financial instruments’ - classification and measurement is applicable on accounting periods beginning
on or after January 01, 2015. This standard on classification and measurement of financial assets and financial
liabilities will replace IAS 39, ‘Financial instruments: Recognition and measurement’. IFRS 9 has two measurement
categories: amortised cost and fair value. All equity instruments are measured at fair value. A debt instrument
is measured at amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows
represent principal and interest. For liabilities, the standard retains most of the requirements of IAS 39 . These
include amortised-cost accounting for most financial liabilities, with bifurcation of embedded derivatives. The
main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value
change due to an entity’s own credit risk is recorded in other comprehensive income rather than the income
statement, unless this creates an accounting mismatch. This change will mainly affect financial institutions. This
IFRS is under consideration of the relevant Committee of the Institute of Chartered Accountants of Pakistan. The
Company has yet to assess the impact of these changes on its financial statements.

IFRS 9, ‘Financial instruments’ is applicable on accounting periods beginning on or after January 01, 2018. IASB
has published the complete version of IFRS 9, ‘Financial Instruments’, which replaces the guidance in IAS 39.
This final version includes requirements on the classification and measurement of financial assets and liabilities;
it also includes an expected credit losses model that replaces the incurred loss impairment model used today.
This IFRS is under consideration of the relevant Committee of the Institute of Chartered Accountants of Pakistan.
The Company has yet to assess the impact of these changes on its financial statements.

Amendments to IFRS 10, ‘Consolidated financial statements’ and IAS 28, ‘Investments in associates and joint
ventures’ are applicable on accounting periods beginning on or after January 01, 2016. These amendments
address an inconsistency between the requirements in IFRS 10 and those in IAS 28 in dealing with the sale
or contribution of assets between an investor and its associate or joint venture. The main consequence of
the amendments is that a full gain or loss is recognised when a transaction involves a business, whether it
is housed in a subsidiary or not. A partial gain or loss is recognised when a transaction involves assets that
do not constitute a business, even if these assets are housed in a subsidiary. The Company shall apply these
amendments from January 01, 2016 and does not expect to have a material impact on its financial statements.

ventures’ are applicable on accounting periods beginning on or after January 01, 2016. These amendments clarify
the application of the consolidation exception for investment entities and their subsidiaries. The Company shall
apply these amendments from January 01, 2016 and does not expect to have a material impact on its financial
statements.
74
IFRS 11 (Amendment), ‘Joint arrangements’ on acquisition of an interest in a joint operation is applicable on

accounting periods beginning on or after 01 January 2016. This amendment adds new guidance on how to
account for the acquisition of an interest in a joint operation that constitutes a business. The amendments
specify the appropriate accounting treatment for such acquisitions. The Company shall apply this amendment
from January 01, 2016 and does not expect to have a material impact on its financial statements.

IFRS 14, ‘Regulatory deferral accounts’ is applicable on accounting periods beginning on or after January 01,
2016. This standard permits first time adopters to continue to recognise amounts related to rate regulation in
accordance with their previous GAAP requirements when they adopt IFRS. However, to enhance comparability
with entities that already apply IFRS and do not recognise such amounts, the standard requires that the effect
of rate regulation must be presented separately from other items. The Company shall apply this standard from
January 01, 2016 and does not expect to have a material impact on its financial statements.

IFRS 15, ‘Revenue from contracts with customers’ is applicable on accounting periods beginning on or after
January 01, 2017. This is a converged standard from the IASB and FASB on revenue recognition. The standard
will improve the financial reporting of revenue and improve comparability of the top line in financial statements
globally. The Company shall apply this standard from January 01, 2017 and does not expect to have a material
impact on its financial statements.

Amendments to IAS 1, ‘Presentation of financial statements’ on the disclosure initiative are applicable on annual
periods beginning on or after January 01, 2016, subject to EU endorsement. These amendments are part of the
IASB initiative to improve presentation and disclosure in financial reports. The Company has yet to assess the
impact of these amendments on its financial statements.

3. Basis of measurement
3.1 These financial statements have been prepared under the historical cost convention except for revaluation of
certain financial instruments at fair value and recognition of certain employee retirement benefits at present
value.

3.2 The Company’s significant accounting policies are stated in note 4. Not all of these significant policies require
the management to make difficult, subjective or complex judgments or estimates. The following is intended to
provide an understanding of the policies that the management considers critical because of their complexity,
judgment and estimation involved in their application and impact on these financial statements. Judgments and
estimates are continually evaluated and are based on historical experience, including expectations of future
events that are believed to be reasonable under the circumstances. These judgments involve assumptions or
estimates in respect of future events and the actual results may differ from these estimates. The areas involving
a higher degree of judgments or complexity or areas where assumptions and estimates are significant to the
financial statements are as follows:
i) Estimated useful life of property, plant and equipment - note 4.2

ii) Provision for employees’ retirement benefits - note 4.7 & 10
iii) Provision for tax - note 35
4. Significant accounting policies
The significant accounting policies adopted in the preparation of these financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.

4.1 Tax
Current
Provision of current tax is based on the taxable income for the year determined in accordance with the prevailing
law for taxation of income. The charge for current tax is calculated using prevailing tax rates or tax rates
expected to apply to the profit for the year, if enacted. The charge for current tax also includes adjustments,
where considered necessary, to provision for tax made in previous years arising from assessments framed
during the year for such years.
75
Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences
arising from differences between the carrying amount of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of the taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits shall be available against which the deductible temporary differences, unused tax
losses and tax credits can be utilised.

Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse
based on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is
charged or credited in the profit and loss account, except in the case of items credited or charged to equity in
which case it is included in equity.

4.2 Property, plant and equipment
Property, plant and equipment, except freehold land, are stated at cost less accumulated depreciation and any
identified impairment loss. Freehold land is stated at cost less any identified impairment loss. Cost in relation to
certain plant and machinery signifies historical cost, gains and losses transferred from equity on qualifying cash
flow hedges as referred to in note 4.17 and borrowing costs as referred to in note 4.20.

Asset subject to finance lease are initially recognised at the lower of present value of minimum lease payments
under the lease agreements and the fair value of the assets. Subsequently these assets are stated at cost less
accumulated depreciation and any identified impairment loss.

Depreciation on all property, plant and equipment is charged to profit on the straight-line method so as to write
off the depreciable amount of an asset over its estimated useful life at the following annual rates:
- Buildings 2.5% to 20%

- Plant and machinery 6.25% to 33.33%
- Other equipments 10% to 33.33%
- Furniture and fixtures 10% to 20%
- Vehicles 20%

The assets’ residual values and useful lives are reviewed, at each financial year end, and adjusted if impact on
depreciation is significant. The Company’s estimate of the residual value of its property, plant and equipment
as at December 31, 2015 has not required any adjustment as its impact is considered insignificant.

Depreciation on additions to property, plant and equipment is charged from the month in which an asset is
acquired or capitalised while no depreciation is charged for the month in which the asset is disposed off.

The Company assesses at each balance sheet date whether there is any indication that property, plant and
equipment may be impaired. If such indication exists, the carrying amounts of such assets are reviewed to assess
whether they are recorded in excess of their recoverable amount. Where carrying amounts exceed the respective
recoverable amount, assets are written down to their recoverable amounts and the resulting impairment loss is
recognised in profit and loss account. The recoverable amount is the higher of an asset’s fair value less costs to
sell and value in use. Where an impairment loss is recognised, the depreciation charge is adjusted in the future
periods to allocate the asset’s revised carrying amount over its estimated useful life.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item shall flow to the Company and
the cost of the item can be measured reliably. All other repair and maintenance costs are charged to profit and
loss account during the period in which they are incurred.

The gain or loss on disposal or retirement of an asset represented by the difference between the sale proceeds
and the carrying amount of the asset is recognised as an income or expense.
76
Capital work-in-progress is stated at cost less any identified impairment loss.
4.3 Investment property
Property not held for own use or for sale in the ordinary course of business is classified as investment property.
The investment property of the Company comprises land and buildings and is valued using the cost method i.e.
at cost less any accumulated depreciation and any identified impairment loss.

Depreciation on buildings is charged to profit on the straight line method so as to write off the depreciable amount
of building over its estimated useful life at the rates ranging from 3.33% to 6.67% per annum. Depreciation on
additions to investment property is charged from the month in which a property is acquired or capitalised while
no depreciation is charged for the month in which the property is disposed off.

The assets’ residual values and useful lives are reviewed, at each financial year end, and adjusted if impact
on depreciation is significant. The Company’s estimate of the residual value of its investment property as at
December 31, 2015 has not required any adjustment as its impact is considered insignificant.

The Company assesses at each balance sheet date whether there is any indication that investment property may
be impaired. If such indication exists, the carrying amounts of such assets are reviewed to assess whether they
are recorded in excess of their recoverable amount. Where carrying amounts exceed the respective recoverable
amount, assets are written down to their recoverable amount and the resulting impairment loss is recognised
in profit and loss account. The recoverable amount is the higher of an asset’s fair value less costs to sell and
value in use. Where an impairment loss is recognised, the depreciation charge is adjusted in the future periods
to allocate the asset’s revised carrying amount over its estimated useful life.


4.4 Intangible assets
Expenditure incurred to acquire computer software and SAP Enterprise Resource Planning (ERP) System are
capitalised as intangible assets and stated at cost less accumulated amortisation and any identified impairment
loss. Intangible assets are amortised using the straight line method over a period of three to five years.

Development costs are recognised as intangible assets when the following criteria are met:
- it is technically feasible to complete the intangible asset so that it will be available for use;
- management intends to complete the intangible asset and use or sell it;
- there is an ability to use or sell the intangible asset;
- it can be demonstrated how the intangible asset will generate probable future economic benefits;
- adequate technical, financial and other resources to complete the development and to use or sell the intangible
asset are available; and
- the expenditure attributable to the intangible asset during its development can be reliably measured.

Other development expenditures that do not meet these criteria are recognised as an expense as incurred.
Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.
Amortisation on additions to intangible assets is charged from the month in which an asset is acquired or
capitalised while no amortisation is charged for the month in which the asset is disposed off.

The Company assesses at each balance sheet date whether there is any indication that intangible assets may
amount, assets are written down to their recoverable amounts and the resulting impairment loss is recognised
in profit and loss account. The recoverable amount is the higher of an asset’s fair value less costs to sell and
value in use. Where an impairment loss is recognised, the amortisation charge is adjusted in the future periods
to allocate the asset’s revised carrying amount over its estimated useful life.
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4.5 Leases
(1) The Company is the lessee:
Finance leases
Leases where the Company has substantially all the risks and rewards of ownership are classified as finance
leases.

The related rental obligations, net of finance charges, are included in liabilities against assets subject to finance
lease. The liabilities are classified as current and long term depending upon the timing of the payment.

Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the
balance outstanding. The interest element of the rental is charged to profit over the lease term.

Operating leases
Leases including ijarah financing where a significant portion of the risks and rewards of ownership are retained
by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives
received from the lessor) are charged to profit on a straight-line basis over the lease / ijarah term unless another
systematic basis is representative of the time pattern of the Company’s benefit.

(2) The Company is the lessor:
Operating leases
Assets leased out under operating leases are included in investment property as referred to in note 18. They
are depreciated over their expected useful lives on a basis consistent with similar owned property, plant and
equipment. Rental income (net of any incentives given to lessees) is recognised on a straight-line basis over the
lease term.

4.6 Investments
Investments intended to be held for less than twelve months from the balance sheet date or to be sold to raise
operating capital, are included in current assets, all other investments are classified as non-current. Management
determines the appropriate classification of its investments at the time of the purchase and re-evaluates such
designation on a regular basis.

Investments in equity instruments of subsidiaries, associates and joint ventures
Investments in subsidiaries and associates where the Company has significant influence are measured at cost in
the Company’s financial statements. Cost in relation to investments made in foreign currency is determined by
translating the consideration paid in foreign currency into Pak rupees at exchange rate prevailing on the date of
transaction.

The Company is required to issue consolidated financial statements along with its separate financial statements,
in accordance with the requirements of IAS 27, ‘Separate Financial Statements’. Investments in associates, and
joint ventures, in the consolidated financial statements, are being accounted for using the equity method.

At each balance sheet date, the Company reviews the carrying amounts of the investments in subsidiaries
and associates to assess whether there is any indication that such investments have suffered an impairment
loss. If any such indication exists, the recoverable amount is estimated in order to determine the extent of the
impairment loss, if any. In making an estimate of recoverable amount of these investments, the management
considers future stream of cash flows and an estimate of the terminal value of these investments. Impairment
losses are recognised as expense in the profit and loss account.

Investments in subsidiaries, associates and joint ventures, that suffered an impairment, are reviewed for possible
reversal of impairment at each reporting date. Impairment losses recognised in the profit and loss account on
investments in subsidiaries and associates are reversed through the profit and loss account.
78
Other investments
Other investments made by the Company are classified for the purpose of measurement into the following
categories:

Held to maturity
Investments with fixed maturity that the management has the intent and ability to hold to maturity are classified
as held to maturity and are initially measured at cost and at subsequent reporting dates measured at amortised
cost using the effective yield method.

Available for sale
The financial assets including investments in associated undertakings where the Company does not have
significant influence that are intended to be held for an indefinite period of time or may be sold in response to
the need for liquidity are classified as available for sale.

Investments classified as available for sale are initially measured at cost, being the fair value of consideration
given. At subsequent reporting dates, these investments are remeasured at fair value. Changes in fair value of
‘available for sale’ investments are recognised in other comprehensive income until derecognised or impaired,
when the accumulated fair value adjustments, recognised in other comprehensive income are transferred to the
profit and loss account.

All purchases and sales of investments are recognised on the trade date which is the date that the Company
commits to purchase or sell the investment. Cost of purchase includes transaction cost.

At each balance sheet date, the Company reviews the carrying amounts of the investments to assess whether
there is any indication that such investments have suffered an impairment loss. If any such indication exists,
the recoverable amount is estimated in order to determine the extent of the impairment loss, if any. Impairment
losses are recognised as expense in the profit and loss account. In respect of ‘available for sale’ financial assets,
cumulative impairment loss less any impairment loss on that financial asset previously recognised in profit
and loss account, is removed from equity and recognised in the profit and loss account. Impairment losses
recognised in the profit and loss account on equity instruments are not reversed through the profit and loss
account.

4.7 Employee retirement benefits
The main features of the schemes operated by the Company for its employees are as follows:

4.7.1 Defined benefit plans
(a) Gratuity plan
There is an approved funded defined benefit gratuity plan for all employees. Monthly contributions are made to
this fund on the basis of actuarial recommendations at the rate of 4.5 percent per annum of basic salaries. The
latest actuarial valuation for the gratuity scheme was carried out as at December 31, 2015. The actual return on
plan assets during the year was 29.8 million. The actual return on plan assets represent the difference between
the fair value of plan assets at the beginning of the year and end of the year adjustments for contributions made
by the Company as reduced by benefits paid during the year.

The future contribution rates of these plans include allowances for deficit and surplus. Projected unit credit
method, using the following significant assumptions, is used for valuation of this scheme:

Discount rate 9.0 percent per annum;
Expected rate of increase in salary level 8.0 percent per annum;
Expected mortality rate SLIC (2001-2005) mortality table with one year setback; and
Expected rate of return 9.0 percent per annum.
79
Plan assets include long term government bonds, equity instruments of listed companies, units of mutual funds,
izafa certificates and term deposit with banks. Return on government bonds and debt is at fixed rates, however,
due to increased volatility of share prices in recent months, there is no clear indication of return on equity
shares, therefore, it has been assumed that the yield on equity shares would match the return on debt.

The Company is expected to contribute Rs. 16.926 million to the gratuity fund in the next financial year.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are
charged or credited to equity in other comprehensive income in the period in which they arise. Past service costs
are recognized immediately in income.

(b) Pension plan
All the management and executive staff participates in the pension plan of the Company. On December 26,
2012, the Board of Trustees of the pension fund, decided to convert the Defined Benefit Plan to Defined
Contribution Plan for all its active employees with effect from January 01, 2013 with no impact on the pensioners
appearing on the pensioners’ list as of that date. The proposed scheme was approved for implementation by
the Commissioner Inland Revenue on February 22, 2013 and employees consent to the proposed scheme was
sought and obtained.

Consequently, the pension plan / fund currently operates two different plans for its employees:
- Defined contribution plan for all active employees; and

- Defined benefit plan for pensioners who have retired before December 31, 2012.

In respect of the defined contribution plan, the Company contributes 20% of members’ monthly salary to the
scheme; whereas, an employee may or may not opt to contribute 6% of his monthly salary to the scheme.

The obligation in respect of the defined benefit plan is determined by the Fund’s Actuary at each year end.
Any funding gap identified by the Fund’s Actuary is paid by the Company from time to time. The last actuarial
valuation was carried out as at December 31, 2015.

Expected rate of increase in pension level 4.0 percent per annum;
Expected rate of return 9.0 percent per annum.

term finance certificates, izafa certificates and term deposit with banks. Return on government bonds and debt
is at fixed rates, however, due to increased volatility of share prices in recent months, there is no clear indication
of return on equity shares, therefore, it has been assumed that the yield on equity shares would match the return
on debt.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions for the
defined benefit plan are charged or credited to equity in other comprehensive income in the period in which they
arise. Past service costs are recognized immediately in income.

Pension plan is a multi-employer plan formed by the Company in collaboration with Tri Pack Films Limited. The
Company reports its proportionate share of the plan’s commitments, managed assets and costs, after deducting
share of Tri Pack Films Limited, in accordance with guidance provided by IAS 19 - Employee Benefits, regarding
defined benefit plans.

(c) Accumulating compensated absences
The Company provides for accumulating compensated absences when the employees render services that
increase their entitlement to future compensated absences. The executives and workers are entitled to earned
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annual leaves and medical leaves on the basis of their service with the Company. The annual leaves can be
encashed at the time the employee leaves the Company on the basis of gross salary while no encashment is
available for medical leaves.

The Company uses the valuation performed by an independent actuary as the present value of its accumulating
compensated absences.

Projected unit credit method, using the following significant assumptions, has been used for valuation of
accumulating compensated absences:

Expected rate of increase in salary level 8.0 percent per annum; and
Expected mortality rate SLIC (2001-2005) mortality table with one year setback.
4.7.2 Defined contribution plan
There is an approved contributory provident fund for all employees. Equal monthly contributions at the rate of
10.0 percent per annum of basic salaries are made by the Company and the employees to the fund. The nature
of contributory pension fund has been explained in note 4.7.1 (b) above.

Retirement benefits are payable to staff on completion of prescribed qualifying period of service under these
schemes.

4.8 Stores and spares
Stores and spares are valued at moving average cost, while items considered obsolete are carried at nil value.
Items in transit are valued at cost comprising invoice value plus other charges paid thereon.

Provision is made in the financial statements for obsolete and slow moving stores and spares based on
management estimate.

4.9 Stock-in-trade
Stock of raw materials, except for those in transit, work-in-process and finished goods are valued principally at
the lower of cost and net realisable value. Cost of raw materials is determined using the weighted average cost
method. Cost of work-in-process and finished goods comprises direct production costs such as raw materials,
consumables and labor as well as production overheads such as employee wages, depreciation, maintenance,
etc. The production overheads are measured based on a standard cost method, which is reviewed regularly to
ensure relevant measures of utilisation, production lead time etc.

Materials in transit are stated at cost comprising invoice value plus other charges paid thereon.
If the expected sales price less completion costs and costs to execute sales (net realisable value) is lower than
the carrying amount, a write-down is recognised for the amount by which the carrying amount exceeds its net
realisable value. Provision is made in the financial statements for obsolete and slow moving stock in trade based
on management estimate.

4.10 Financial instruments
Financial assets and financial liabilities are recognised at the time when the Company becomes a party to the
contractual provisions of the instrument and derecognised when the Company loses control of contractual rights
that comprise the financial assets and in the case of financial liabilities when the obligation specified in the
contract is discharged, cancelled or expired. Any gain or loss on derecognition of financial assets and financial
liabilities is included in the profit and loss account for the year.

Financial instruments carried on the balance sheet include loans, investments, trade and other debts, cash and
bank balances, borrowings, trade and other payables, accrued expenses and unclaimed dividends. All financial
81
assets and liabilities are initially measured at cost, which is the fair value of consideration given and received
respectively. These financial assets and liabilities are subsequently measured at fair value or cost as the case
may be. The particular recognition methods adopted are disclosed in the individual policy statements associated
with each item.

4.11 Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and the net amount is reported in the financial statements only when
there is a legally enforceable right to set off the recognised amount and the Company intends either to settle on
a net basis or to realise the assets and to settle the liabilities simultaneously.

4.12 Trade debts
Trade debts are amounts due from customers for merchandise sold or services performed in the ordinary course
of business. If collection is expected in one year or less (or in the normal operating cycle of the business, if
longer), they are classified as current assets. If not, they are presented as non-current assets.

Trade debts are recognized initially at fair value and subsequently measured at amortised cost using the effective
interest method, less an estimate made for doubtful debts based on a review of all outstanding amounts at the
year end. Bad debts are written off when identified.

4.13 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. For the purpose of cash flow statement, cash
and cash equivalents comprise cash in hand, demand deposits, other short term highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in
value and finances under mark up arrangements. In the balance sheet, finances under mark up arrangements
are included in current liabilities.

4.14 Non-current assets / disposal group held-for-sale
Non-current assets are classified as assets held-for-sale when their carrying amount is to be recovered
principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of
carrying amount and fair value less cost to sell.

4.15 Borrowings
Borrowings are recognised initially at fair value (proceeds received), net of transaction costs incurred. Borrowings
are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs)
and the redemption value is recognised in the income statement over the period of the borrowings using the
effective interest method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that
it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-
down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn
down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility
to which it relates.

Finance costs are accounted for on an accrual basis and are shown as accrued finance cost to the extent of the
amount remaining unpaid.

4.16 Trade and other payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year
or less (or in the normal operating cycle of the business, if longer). If not, they are presented as non-current
liabilities.

82
Liabilities for creditors and other costs payable are initially recognised at cost which is the fair value of the
consideration to be paid in future for goods and/ or services, whether or not billed to the Company and
subsequently measured at amortised cost using the effective interest method.

4.17 Derivative financial instruments
These are initially recorded at cost on the date a derivative contract is entered into and are remeasured to fair
value at subsequent reporting dates. The method of recognising the resulting gain or loss depends on whether
the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The
Company designates certain derivatives as cash flow hedges.

The Company documents at the inception of the transaction the relationship between the hedging instruments
and hedged items, as well as its risk management objective and strategy for undertaking various hedge
transactions. The Company also documents its assessment, both at hedge inception and on an on-going basis,
of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash
flow of hedged items.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges are recognised in statement of other comprehensive income. The gain or loss relating to the ineffective
portion is recognised immediately in the profit and loss account.

Amounts accumulated in equity are recognised in profit and loss account in the periods when the hedged item
shall effect profit or loss. However, when the forecast hedged transaction results in the recognition of a non-
financial asset or liability, the gains and losses previously deferred in equity are transferred from equity and
included in the initial measurement of the cost of the asset or liability.

4.18 Revenue recognition
Revenue is recognised on dispatch of goods or on the performance of services.

Return on deposits is accrued on a time proportion basis by reference to the principal outstanding and the
applicable rate of return.

Dividend income and entitlement of bonus shares are recognised when right to receive such dividend and bonus
shares is established.

4.19 Foreign currency transactions and translation
Foreign currency transactions are translated into Pak Rupees using the exchange rates prevailing at the dates of
the transactions. All monetary assets and liabilities in foreign currencies are translated into Pak Rupees at the
rates of exchange prevailing at the balance sheet date. Foreign exchange gains and losses on translation are
recognised in the profit and loss account. All non-monetary items are translated into Pak Rupees at exchange
rates prevailing on the date of transaction or on the date when fair values are determined.

The financial statements are presented in Pak Rupees, which is the Company’s functional and presentation
currency.

4.20 Borrowing costs
General and specific borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready
for their intended use or sale.
83
Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing / finance costs are recognised in profit and loss account in the period in which they are
incurred.

4.21 Dividend
Dividend distribution to the Company’s shareholders is recognised as a liability in the period in which the
dividends are approved.

4.22 Compound financial instruments
Compound financial instruments issued by the Company represent preference shares / convertible stock that
can be converted into ordinary shares or can be settled in cash.

The liability component of a compound financial instrument is recognised initially at the fair value of a similar
liability that does not have an equity conversion option. The equity component is recognised initially at the
difference between the fair value of the compound financial instrument as a whole and the fair value of the liability
component. Any directly attributable transaction costs are allocated to the liability and equity components in
proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at
amortised cost using the effective interest method. The equity component of a compound financial instrument
is not remeasured subsequent to initial recognition.

4.23 Provisions
Provisions for environmental restoration, restructuring costs and legal claims are recognised when:

(i) the Company has a present legal or constructive obligation as a result of past events;
(ii) it is probable that an outflow of resources shall be required to settle the obligation; and
(iii) the amount has been reliably estimated

Restructuring provisions include lease termination penalties and employee termination payments and such
other costs that are necessarily entailed by the restructuring and not associated with on-going activities of the
Company. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow shall be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood
of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation
using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific
to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
84
5. Issued, subscribed and paid up capital
2015 2014 2015 2014

(Number of shares) (Rupees in thousand)
Ordinary shares of Rs. 10 each as at the

beginning of the year
33,603,295 33,603,295 - fully paid in cash 336,033 336,033
148,780 148,780 - fully paid for consideration other than cash 1,488 1,488
- fully paid against conversion of preference
2,000,000 - shares / convertible stock 20,000 -
50,627,429 50,627,429 - fully paid bonus shares 506,274 506,274
86,379,504 84,379,504 863,795 843,795
Issuance of shares upon conversion of

2,000,000 2,000,000 preference shares / convertible stock - note 5.1 20,000 20,000

end of the year
4,000,000 2,000,000 shares / convertible stock 40,000 20,000

88,379,504 86,379,504 883,795 863,795
5.1 Under the terms of redemption / conversion of preference shares / convertible stock mentioned in note 7.2,
the Company, during the year converted 2,000,000 (2014: 2,000,000) preference shares / convertible stock
of Rs. 190 each held by International Finance Corporation, Washington D.C, USA (‘IFC’) into 2,000,000 (2014:
2,000,000) fully paid ordinary shares of Rs. 10 each.

5.2 21,522,101 (2014: 21,133,101) ordinary shares of the Company are held by IGI Insurance Limited, an associated
undertaking.
6. Reserves
Movement in and composition of reserves is as follows:
Capital
Share premium
At the beginning of the year 3,232,831 2,876,893
Conversion of preference shares / convertible stock 6.1 355,938 355,938
6.2 3,588,769 3,232,831
Fair value reserve
Fair value (loss) / gain during the year (4,744,022) 5,656,334
6.3 24,479,228 29,223,250
28,067,997 32,456,081
Revenue
General reserve
Transferred from profit and loss account 1,500,000 700,000
13,810,333 12,310,333
41,878,330 44,766,414
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6.1 This represents share premium at the rate of Rs. 177.97 (2014: Rs. 177.97) per share in respect of the transaction
referred to in note 5.1 above.

6.2 This reserve can be utilised by the Company only for the purposes specified in section 83(2) of the Companies
Ordinance, 1984.

6.3 As referred to in note 4.6, this represents the unrealised gain on remeasurement of investments at fair value
and is not available for distribution. This shall be transferred to profit and loss account on derecognition of
investments.
7. Long term finances
These are composed of:

Local currency loans - secured
Term finance loan 7.1.1 100,000 300,000
Long term finance facility 7.1.2 2,000,000 2,000,000
2,100,000 2,300,000
Preference shares / convertible stock - unsecured 7.2 2,014,895 2,128,815
4,114,895 4,428,815
Current portion shown under current liabilities 12 (385,714) (200,000)
3,729,181 4,228,815

7.1 Local currency loans - secured
7.1.1 Term finance loan
During the current year, the Company has made a re-payment of Rs. 200 million towards the term finance loan
availed from Bank Al-Habib Limited. This loan is secured by a pari passu charge of Rs. 1,273 million (2014:
1,273 million) over present and future fixed assets of the Company located at Lahore excluding land and
buildings. It carries mark up at the rate of six months Karachi Inter Bank Offer Rate (‘KIBOR’) plus 0.2 percent
per annum to six months KIBOR plus 0.65 percent per annum (2014: KIBOR plus 0.65 percent per annum). The
balance is repayable on May 19, 2016. The effective mark up charged during the year ranges from 7.20 percent
to 10.82 percent per annum (2014: 9.81 percent to 10.82 percent per annum).

7.1.2 Long term finance facility
This loan has been obtained from Meezan Bank Limited under the Islamic mode of finance as a Musharika. It
is secured by a pari passu charge over all present and future fixed assets of the Company located at Lahore
and Kasur excluding land and building located at Lahore amounting to Rs. 2,500 million. It carries mark up at
six months KIBOR plus 0.25 percent per annum (2014: six months KIBOR plus 0.65 percent per annum) and is
payable in 7 equal semi-annual installments starting on December 28, 2016 and ending on December 28, 2019.
The effective mark up charged during the year ranges from 7.26 percent to 9.89 percent per annum (2014:
10.81 percent to 10.82 percent per annum).

7.2 Preference shares / convertible stock - unsecured
During the year 2009, the Company issued 10 percent local currency non-voting cumulative preference shares /
convertible stock at the rate of Rs. 190 per share amounting to USD 50 million equivalent to PKR 4,120.5 million
under “Subscription Agreement” dated March 25, 2009 with IFC.

Terms of redemption / conversion
Each holder of preference shares / convertible stock shall have a right to settle at any time, at the option of
holder, either in the form of fixed number of ordinary shares, one ordinary share for one preference share /
convertible stock, or cash. The Company may, in its discretion, refuse to purchase the preference shares /
86
convertible stock offered to it for purchase in cash. In case of refusal by the Company, preference shareholders
shall have the right to either retain the preference shares / convertible stock or to convert them into ordinary
shares. The preference shares / convertible stock can be held till perpetuity if preference shareholders do not
opt for the conversion or cash settlement.

Rate of return
The preference share / convertible stock holders have a preferred right of return at the rate of 10 percent per
annum on a non-cumulative basis till the date of settlement of preference shares / convertible stock either in
cash or ordinary shares.

Preference shares / convertible stock are recognised in the balance sheet as follows:


Face value of preference shares / convertible stock
[17,686,842 (2014: 19,686,842) shares of Rs. 190 each] 3,360,500 3,740,500
Transaction costs (35,923) (39,986)
3,324,577 3,700,514
Equity component - classified under capital and reserves 7.2.1 (1,309,682) (1,571,699)
Liability component - classified under long term finances 2,014,895 2,128,815

Accrued return on preference shares / convertible stock
classified under accrued finance cost 336,050 355,047

7.2.1 Movement in equity component - classified under
capital and reserves
Opening balance 1,571,699 1,605,875

Transfer from long term finances to capital and
reserves [1,000,000 shares (2014: 3,000,000 shares)] 113,921 341,762
Conversion into ordinary share capital and share
premium [2,000,000 shares (2014: 2,000,000 shares)] (375,938) (375,938)
Closing balance 1,309,682 1,571,699

The fair value of the liability component of the preference shares / convertible stock is calculated by discounting
cash flows at a rate of approximately 16.50 percent till perpetuity which represents the rate of similar instrument
with no associated equity component. The residual amount, representing the value of the equity conversion
component, is included in shareholders equity as preference shares / convertible stock reserve.

During the year, IFC exercised its right to convert 1,000,000 (2014: 3,000,000) preference shares / convertible
stock of Rs. 190 into 1,000,000 (2014: 3,000,000) ordinary shares of Rs. 10 each. Consequently, the Company
converted 2,000,000 (2014: 2,000,000) preference shares / convertible stock during the year of which 1,000,000
(2014: Nil) preference shares / convertible stock pertain to the right exercised by IFC in the previous year.
Accordingly, the liability portion pertaining to 1,000,000 (2014: 3,000,000) preference shares / convertible
stock converted into ordinary shares has been transferred to capital and reserves.
87

8. Liabilities against assets subject to finance lease
Present value of minimum lease payments 34,224 30,381

Current maturity shown under current liabilities 12 (6,571) (4,696)
27,653 25,685

Interest rate used as discounting factor ranges from 6.96 per cent to 10.72 per cent per annum (2014: 9.99 per
cent to 10.72 per cent per annum). Taxes, repairs, replacements and insurance costs are borne by the lessee.

The amount of the future payment of the lease as shown in the balance sheet and the period in which these
payments will become due are as follows:
Minimum Future Present value of lease

lease finance liability
(Rupees in thousand) payments charge 2015 2014
Not later than one year 7,966 1,395 6,571 4,696

Later than one year and not later than five years 28,999 1,346 27,653 25,685
36,965 2,741 34,224 30,381

9. Deferred tax
The liability for deferred tax comprises temporary

differences relating to:
Accelerated tax depreciation 462,907 558,430
Unused tax losses - (199,491)
Minimum tax available for carry forward 9.1 (122,079) -
Alternate corporate tax available for carry forward (33,787) -
Provision for accumulating compensated absences (60,312) (60,881)
Provision for doubtful debts (7,491) (13,239)
Preference shares / convertible stock transaction
cost - liability portion 6,882 8,022
246,120 292,841

9.1 The Divisional Bench of Sindh High Court in an order dated May 7, 2013 in case of another company has
interpreted section 113(2)(c) of the Income Tax Ordinance, 2001 (‘Ordinance’) in the manner that the benefit
of carry forward of minimum tax paid is not available if otherwise no tax was payable by the Company due to
taxable loss.
Taking a prudent view on the matter the Company has not adjusted the net deferred tax liability against aggregate
tax credits of Rs. 436.93 million (2014: Rs. 811.446 million) available under section 113 of the Ordinance. Tax
credits under section 113 of the Ordinance amounting to Rs. 203.917 million, Rs. 110.934 million and Rs.
122.079 million are set to lapse by the end of years ending on December 31, 2016, 2017 and 2020 respectively.
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10. Retirement benefits
Classified under non-current assets
Pension fund - 58,252

Gratuity fund - 29,629
- 87,881

Classified under non-current liabilities
Pension fund 24,744 -

Gratuity fund 15,681 -
40,425 -

Pension Fund Gratuity Fund
(Rupees in thousand) 2015 2014 2015 2014
The amounts recognised in the balance sheet

are as follows:

Fair value of plan assets 627,009 700,115 362,566 339,502
Present value of defined benefit obligation (651,753) (641,863) (378,247) (309,873)
(Liability) / asset as at December 31 (24,744) 58,252 (15,681) 29,629

Net asset / (liability) as at January 1 58,252 (578) 29,629 6,540
Income / (charge) to profit and loss account 6,117 (72) (13,685) (14,282)
(Loss) / gain recorded in OCI (89,113) 58,902 (46,954) 23,921
Contribution by the Company - - 15,329 13,450
Net (liability) / asset as at December 31 (24,744) 58,252 (15,681) 29,629

The movement in the present value of
defined benefit obligation is as follows:

Present value of defined benefit obligation
as at January 1 641,863 568,285 309,873 275,115
Service cost - - 18,005 16,152
Interest cost 63,837 66,808 30,860 31,339
Benefits paid (67,785) (67,639) (31,006) (45,424)
Benefits due but not paid - - (923) (3,379)
Loss from change in demographic
assumptions - 3,144 - -
Loss from change in financial assumptions 43,903 62,212 - -
Experience adjustments (30,065) 9,053 51,438 36,070
Present value of defined benefit obligation as

at December 31 651,753 641,863 378,247 309,873
89

The movement in fair value of plan assets is
as follows:

Fair value as at January 1 700,115 567,707 339,502 281,655
Expected return on plan assets 69,954 66,736 35,180 33,209
Company contributions - - 15,329 13,450
Benefits paid (67,785) (67,639) (31,006) (45,424)
Experience (loss) / gain (75,275) 133,311 4,484 59,991
Fair value as at December 31 627,009 700,115 362,566 339,502
The amounts recognised in the profit and

loss account are as follows:

Current service cost - - 18,005 16,152
Interest cost for the year 63,837 66,808 30,860 31,339
Expected return on plan assets (69,954) (66,736) (35,180) (33,209)
Net (income) / expense included in
salaries, wages and amenities (6,117) 72 13,685 14,282

Plan assets are comprised as follows:
Debt 291,528 250,081 144,192 14,802
Equity 333,161 393,815 216,271 220,812
Cash 2,320 56,219 2,103 103,888
627,009 700,115 362,566 339,502
The present value of defined benefit obligation, the fair value of plan assets and the deficit or surplus of pension
fund is as follows:

(Rupees in thousand) 2015 2014 2013 2012 2011
As at December 31
Present value of defined
benefit obligation 651,753 641,863 568,285 582,031 1,092,581
Fair value of plan assets 627,009 700,115 567,707 305,573 685,750
(Deficit) / surplus (24,744) 58,252 (578) (276,458) (406,831)

Experience adjustment
on obligation -5% 2% 1% 13% 11%
on plan assets -11% 24% 2% 11% -10%
90
Fair value of plan assets include ordinary shares of the Company, whose fair value as at December 31, 2015 is
Rs. 384.214 million (2014: Rs. 447.696 million).

The present value of defined benefit obligation, the fair value of plan assets and the surplus of gratuity fund is
as follows:
As at December 31
benefit obligation 378,247 309,873 275,115 371,372 314,074
(Deficit) / surplus (15,681) 29,629 6,540 (30,350) 3,094
on obligation 6% 13% 9% 14% -1%
on plan assets 1% 21% 14% 9% -5%

Fair value of plan assets include ordinary shares of the Company, whose fair value as at December 31, 2015 is
Rs. 60.827 million (2014: Rs. 70.877 million).
2015
(Rupees in thousand) Pension Gratuity
Year end sensitivity analysis on defined benefit obligation:
Discount rate + 100 bps 608,531 350,030

Discount rate - 100 bps 701,114 410,723
Indexation + 100 bps 708,393 410,963
Indexation - 100 bps 601,768 349,325
11. Deferred liabilities
This represents provision made to cover the obligation

for accumulating compensated absences
Opening balance 174,581 139,576

Provision for the year 50,528 52,084
225,109 191,660
Payments made during the year (23,533) (17,079)
Closing balance 201,576 174,581
12. Current portion of long term liabilities
Current portion of long term finances - secured 7 385,714 200,000

Current portion of liabilities against assets subject
to finance lease 8 6,571 4,696
392,285 204,696
91

13. Finances under mark up arrangements - secured
Running finances - secured 13.1 534,481 862,596

Bills discounted - secured 13.2 - -
Short term finances - secured 13.3 350,000 400,000
884,481 1,262,596

13.1 Running finances - secured
Short term running finances available from a consortium of commercial banks under mark up arrangements
amount to Rs. 7,910 million (2014: Rs. 7,910 million). The rates of mark-up range from Re 0.1780 to Re 0.2980
(2014: Re 0.2638 to Re 0.3134) per Rs. 1,000 per diem or part thereof on the balances outstanding. In the event
the Company fails to pay the balances on the expiry of the quarter, year or earlier demand, mark up is to be
computed at the rates ranging from Re 0.2136 to Re 0.3636 (2014: Re 0.3165 to Re 0.3823) per Rs. 1,000 per
diem or part thereof on the balances unpaid. The aggregate running finances are secured by hypothecation of
stores, spares, stock-in-trade and trade debts.

13.2 Bills discounted - secured
Facilities for discounting of export / inland bills of Rs. 531 million (2014: Rs. 531 million) are available to the
Company as a sub-limit of the running finance facilities referred to in note 13.1. Markup is fixed as per mutual
agreement at the time of transaction. The outstanding balance of bills discounted is secured, in addition to
the securities referred to in note 13.1, on the specific bills discounted. The facility has not been availed in the
current year.

13.3 Short term finances - secured
Facilities for obtaining short term finances of Rs. 6,635 million (2014: Rs. 6,635 million) are available to the
Company as a sub-limit of the running finance facilities referred to in note 13.1. The rates of mark-up range
from Re 0.1698 to Re 0.2715 (2014: Re 0.2690 to Re 0.2858) per Rs. 1,000 per diem or part thereof on the
balances outstanding.

13.4 Letters of credit and bank guarantees
Of the aggregate facility of Rs. 6,339 million (2014: Rs. 6,589 million) for opening letters of credit and Rs. 794
million (2014: Rs. 994 million) for guarantees, the amount utilised as at December 31, 2015 was Rs. 443.744
million (2014: Rs. 162.553 million) and Rs. 267.208 million (2014: Rs. 199.652 million) respectively. Of the
facility for guarantees, Rs. 794 million (2014: Rs. 1,294 million) is secured by second hypothecation charge over
stores, spares, stock-in-trade and trade debts.
92

14. Trade and other payables
Trade creditors 14.1 1,231,903 1,118,642

Accrued liabilities 14.2 459,326 379,448
Bills payable 1,022,815 1,245,493
Sales tax payable 22,691 2,467
Advances from customers 49,069 54,691
Payable to employees’ retirement benefit funds 14.3 14,590 13,237
Deposits - interest free repayable on demand 7,446 7,226
TFCs payable 1,387 1,387
Unclaimed dividends 20,975 17,290
Workers’ profit participation fund 14.4 204,216 147,665
Workers’ welfare fund 14.5 174,237 96,635
Others
69,469 60,499
3,278,124 3,144,680

14.1 Trade creditors include amount due to related parties as follows:
Subsidiary
DIC Pakistan Limited 88,640 69,584
Joint venture
Bulleh Shah Packaging (Private) Limited 232,766 163,698
Associates
Tri-Pack Films Limited 54,043 1,285

IGI Insurance Limited 4,267 568
379,716 235,135
14.2 Accrued liabilities include amounts in respect of

related parties as follows:
Subsidiary
DIC Pakistan Limited 707 459
Joint venture
Bulleh Shah Packaging (Private) Limited - 764
Associates
IGI Insurance Limited 175 -
882 1,223

14.3 Payable to employees’ retirement benefit funds
Employees’ provident fund 14.3.1 7,347 6,808

Employees’ gratuity fund 1,293 1,149
Management staff pension fund 5,950 5,280
14,590 13,237
93

14.3.1 Employees’ provident fund
(i) Size of the fund 2,152,893 2,311,341

(ii) Cost of investments made 776,987 715,803
(iii) Fair value of investments 14.3.2 2,125,249 2,297,324
(iv) Percentage of investments made 98.72% 99.39%
14.3.2 Fair value of investments

2015 2014
Rupees in % age of size Rupees in % age of size
thousand of the Fund thousand of the Fund

Break up of investments
Equity shares of listed companies 1,480,216 68.75% 1,719,020 74.37%

Mutual funds 206,866 9.61% 159,346 6.89%
Izafa certificates 160,217 7.44% 148,011 6.40%
Pakistan investment bonds 214,565 9.97% 213,169 9.22%
Term finance certificates 20,155 0.94% 28,524 1.23%
Term deposit receipts with banks 43,230 2.01% - 0.00%
Treasury bills - 0.00% 29,254 1.27%
2,125,249 98.72% 2,297,324 99.39%

14.3.3 The investments of the employee’s provident fund trust have been made in accordance with the provisions of
section 227 of the Ordinance and the Rules formulated for this purpose.
14.4 Workers’ profit participation fund

Provision for the year 31 204,216 147,665
351,881 254,301

14.5 Workers’ welfare fund

15. Accrued finance costs
Accrued markup / return on:

Long term local currency loans - secured 7,000 148,704
Preference shares / convertible stock - unsecured 336,050 355,047
Finances under mark up arrangements - secured 6,232 13,883
349,282 517,634
94
16. Contingencies and commitments
16.1 Contingencies
(i) Claims against the Company not acknowledged as debts Rs. 18.946 million (December 2014: Rs. 18.062
million).
(ii) Post dated cheques not provided in the financial information have been furnished by the Company in favor
of the Collector of Customs against custom levies aggregated to Rs. 69.148 million (December 2014: Rs.
86.546 million) in respect of goods imported.
(iii) Standby letter of credit issued by Habib Bank Limited Pakistan in favor of Habib Bank Limited Bahrain on
behalf of the Company amounting to USD 11.770 million (equivalent to PKR 1,232.781 million) [December
2014: Nil] as referred to in note 20.1.1.
16.2 Commitments
(i) Letters of credit and contracts for capital expenditure Rs. 295.519 million (December 2014: Rs. 51.002
million).
(ii) Letters of credit and contracts for other than for capital expenditure Rs. 223.465 million (December 2014:
Rs. 209.069 million).
(iii) The amount of future payments under operating leases and the period in which these payments will become
due are as follows:


Not later than one year 10,597 15,494
Later than one year and not later than five years 37,259 42,829
47,856 58,323

There are no commitments with related parties.

17. Property, plant and equipment
Owned assets 17.1 3,540,012 3,400,833

Assets subject to finance lease 17.2 35,248 30,830
Capital work in progress 17.3 229,217 254,014
3,804,477 3,685,677
95
17.1 Owned assets
2015
Transfer Accumulated Depreciation Transfer Accumulated Book value
Cost as at in / (out) Cost as at depreciation charge / in / (out) depreciation as at
December Addition/ (note 17.2) December as at December (deletions) (note 17.2) as at December December
(Rupees in thousand) 31, 2014 (deletions) (note 18) 31, 2015 31, 2014 for the year (note 18) 31, 2015 31, 2015
Freehold land 116,730 26,641 - 137,297 - - - - 137,297

- (6,074) - -
Buildings on freehold land 496,082 2,376 - 498,458 140,062 19,972 - 160,034 338,424
- - - -
Buildings on leasehold land 221,419 - - 221,419 110,432 9,993 - 120,425 100,994
- - -
Plant and machinery 7,331,657 577,516 - 7,453,853 4,931,861 401,246 - 4,878,183 2,575,670
(455,320) - (454,924) -
Other equipments (computers, lab equipments
and other office equipments) 739,320 38,187 - 774,770 478,408 83,929 - 559,803 214,967
(2,737) - (2,534) -
Furniture and fixtures 13,411 1,651 - 14,928 13,085 172 - 13,123 1,805
(134) - (134) -
Vehicles 254,785 64,092 2,168 268,126 98,723 25,602 390 97,271 170,855
(52,919) - (27,444) -
9,173,404 710,463 2,168 9,368,851 5,772,571 540,914 390 5,828,839 3,540,012

(511,110) (6,074) (485,036) -
2014
Accumulated Depreciation Accumulated Book value
Cost as at Transfer Cost as at depreciation charge / Transfer depreciation as at
December Addition / in / (out) December as at December (deletions) in / (out) as at December December
(Rupees in thousand) 31, 2013 (deletions) (note 18) 31, 2014 31, 2013 for the year (note 18) 31, 2014 31, 2014
Freehold land 147,571 19,731 - 116,730 - - - - 116,730

- (50,572) - -
Buildings on freehold land 475,749 20,485 - 496,082 120,228 19,906 - 140,062 356,020
(152) - (72) -
Buildings on leasehold land 221,419 - - 221,419 100,267 10,165 - 110,432 110,987
- - -
Plant and machinery 7,289,458 540,565 - 7,331,657 5,047,057 380,002 - 4,931,861 2,399,796
(498,366) - (495,198) -
Other equipments (computers, lab equipments
and other office equipments) 669,553 78,951 - 739,320 405,302 78,442 - 478,408 260,912
(9,184) - (5,336) -
Furniture and fixtures 13,320 91 - 13,411 12,921 164 - 13,085 326
- - - -
Vehicles 230,537 61,422 - 254,785 91,269 24,217 - 98,723 156,062
(37,174) - (16,763) -
9,047,607 721,245 - 9,173,404 5,777,044 512,896 - 5,772,571 3,400,833

(544,876) (50,572) (517,369) -
17.1.1 Owned assets include assets amounting to Rs. 15.385 million (2014: Rs. 20.479 million) of the Company which
are not in operation.
17.1.2 The cost of fully depreciated assets which are still in use as at December 31, 2015 is Rs. 3,253.862 million
(2014: Rs. 2,986.551 million).
17.1.3 The depreciation charge for the year has been allocated as follows:


Cost of sales 28 510,634 485,716
Administrative expenses 29 23,092 20,767
Distribution and marketing costs 30 7,188 6,413
540,914 512,896
96
17.1.4 Disposal of owned assets

Detail of owned assets disposed off during the year is as follows:

(Rupees in thousand) 2015
Particulars Accumulated Sales Mode of
of assets Sold to Cost depreciation Book value proceeds disposal
Plant and machinery Outsider - related party

Bulleh Shah Packaging (Private) Limited 912 627 285 109 Negotiation

Outsider
Muhammad Ameen 5,296 5,186 110 1,295 Negotiation

Other Equipments Outsiders - related party
IGI Insurance Limited 105 15 90 75 Claim Settlement

Vehicles Employees
Ahmed Ramzan 1,100 572 528 763 Company Policy
Ammad Asif 1,275 536 739 906 - do -
Asma Shahzad 750 405 345 471 - do -
Athar Riaz 1,498 419 1,079 1,166 - do -
Ather Ayub Khan 1,797 1,348 449 481 Negotiation
Fahad Ali 490 368 122 218 Company Policy
Farhan Munir 700 182 518 511 - do -
Ghayyur Abbas 700 203 497 512 - do -
Hammad Ahmed Butt 944 349 595 582 - do -
Hassan Asif 1,640 1,046 594 1,197 - do -
Imran Iqbal 1,548 341 1,207 1,218 - do -
Khalid Aziz 493 364 129 221 - do -
Rtd. Major Fazal Ahmed 1,778 76 1,702 1,760 Negotiation
Maryam Nisar 813 325 488 562 Company Policy
Mashkoor Hussain 1,498 390 1,108 1,173 - do -
Moiz Ahmed 741 282 459 456 - do -
Mudassir Anjum 1,111 455 656 779 - do -
Mudassir Shafique 1,232 924 308 717 - do -
Muhammad Akram 1,288 869 419 571 - do -
Muhammad Amir Baig 1,770 142 1,628 1,771 - do -
Muhammad Ashiq 630 449 181 333 - do -
Muhammad Awais Jawaid 859 634 225 398 - do -
Muhammad Latif 800 600 200 475 - do -
Muhammad Siddique 1,232 924 308 709 - do -
Muhammad Usman Akram 810 300 510 516 - do -
Musa Naseer 878 648 230 414 - do -
Musarrat Mumtaz 389 291 98 102 - do -
Omar Javed 673 135 538 487 - do -
Sagheer Hussain 505 366 139 230 - do -
Sahil Zaheer 1,426 1,034 392 859 - do -
Saifullah Zaheer 695 56 639 614 - do -
Shamim Ahmed Khan 1,000 688 312 511 - do -
Tanseer Asghar 511 370 141 235 - do -
Tanveer Ahmed Awan 515 380 135 237 - do -
Umer Mehmood 650 234 416 420 - do -
Usman Anwar 1,250 645 605 884 - do -
Usman Munir 750 367 383 462 - do -
Zafar Mehmood 1,400 364 1,036 1,149 - do -
Zubair Ahmed 467 350 117 178 - do -
Outsiders - Related Party

Tripack Films Limited 2,512 678 1,834 1,834 - do -
Syed Aslam Mehdi 1,969 1,304 665 664 - do -
Outsiders
Argosy Enterprises 1,279 959 320 1,102 Negotiation
Asim Mumtaz 1,347 1,010 337 830 - do -
Muhammad Sajid 678 88 590 562 - do -
Qadeer Associates & Motors 1,169 876 293 990 - do -
Riaz Motors 673 114 559 513 - do -
Other assets with book

value less than Rs. 50,000 455,585 455,530 55 57,034 Negotiation
511,110 485,036 26,074 91,023
97
Buildings on freehold land Outsider

Muhammad Younis and Company 152 72 80 27 Negotiation

Bulleh Shah Packaging (Private) Limited 6,019 5,173 846 1,000 Negotiation

Outsider
Muhammad Younis & Company 4,537 2,215 2,322 805 Negotiation

Other Equipments Employee
Syed Aslam Mehdi 2,348 240 2,108 - Company Policy

Outsider
Malik Muhammad Younis 1,983 529 1,454 84 Negotiation

Vehicles Employees
Ali Faraz 741 192 549 537 Company Policy
Asad Ur Rehman 950 152 798 755 - do -
Athar Rashid Butt 1,687 1,118 569 590 - do -
Atif Raza 750 98 652 645 - do -
Attia Jamal 1,035 290 745 832 - do -
Faisal Mehmood 672 54 618 572 - do -
Hamid Jameel 746 560 186 422 - do -
Haroon Naseer 1,232 909 323 718 - do -
Ishtiaq Ahmad 937 356 581 681 - do -
Kamran Bashir 1,232 909 323 717 - do -
Mian Abid Nisar Lodhi 783 196 587 498 - do -
Mohayyundin Ahmad 700 473 227 399 - do -
Muhammad Ahmad 1,110 425 685 870 - do -
Muhammad Anwar 516 387 129 233 - do -
Muhammad Bilal Tariq 555 183 372 352 - do -
Muhammad Naveed 730 547 183 585 Negotiation
Muhammad Zubair 960 684 276 496 Company Policy
Musab Mukhtar 538 404 134 257 - do -
Nasir Mehmood 628 455 173 325 - do -
Raza Sanaullah 1,924 250 1,674 1,761 - do -
Sajjad Iftikhar 1,690 389 1,301 1,256 - do -
Salman Saleem 620 465 155 335 - do -
Shafi Karim 822 462 360 528 Negotiation
Shakir Zia 1,430 858 572 941 Company Policy
Syed Asim Shamim 1,386 762 624 906 - do -
Syed Shaukat Hussain 487 359 128 227 - do -
Talal Bin Najam 620 186 434 397 - do -
Waseem Ahmad 1,017 142 875 899 - do -

Outsiders
Amir Saleem 387 290 97 318 Negotiation
Aurangzeb 2,500 1,744 756 4,732 - do -
Bank Al Habib 4,680 328 4,352 4,584 Sale and lease
back
Khair Agencies 657 85 572 575 Negotiation
Muhammad Rashid Shakoor 874 656 218 720 - do -
Nazim Hussain 730 547 183 642 - do -

544,876 517,369 27,507 106,792
98
17.2 Assets subject to finance lease

2015
December Additions / (out) December as at December (deletions) (out) as at December December
(Rupees in thousand) 31, 2014 (deletions) (note 17.1) 31, 2015 31, 2014 for the year (note 17.1) 31, 2015 31, 2015

Vehicles 35,030 10,811 (2,168) 43,673 4,200 4,615 (390) 8,425 35,248
35,030 10,811 (2,168) 43,673 4,200 4,615 (390) 8,425 35,248
2014
Vehicles 28,897 6,133 - 35,030 548 3,652 - 4,200 30,830
28,897 6,133 - 35,030 548 3,652 - 4,200 30,830
17.2.1 Depreciation charge for the year has been allocated as follows:

Cost of sales 28 1,090 1,039
Distribution and marketing costs 30 261 65
4,615 3,652
17.3 Capital work-in-progress
Civil works 11,229 40,084

Plant and machinery [including in transit Rs. 49.39 million (2014: Nil)] 194,137 207,041
Advance for procurement of land 17,593 1,000
Advances to suppliers 6,258 5,889
229,217 254,014

18. Investment property

2015
Cost as at Cost as at depreciation charge / depreciation as at
December Additions / Transfer in December as at December (deletions) Transfer in as at December December

Land 117,917 - 6,074 123,991 - - - - 123,991
Buildings on freehold land 41,151 - - 41,151 32,955 2,624 - 35,579 5,572
Buildings on leasehold land 23,741 15,834 - 39,575 12,067 1,645 - 13,712 25,863
182,809 15,834 6,074 204,717 45,022 4,269 - 49,291 155,426
2014

Land 67,345 - 50,572 117,917 - - - - 117,917
Buildings on leasehold land 23,741 - - 23,741 11,140 927 - 12,067 11,674
132,237 - 50,572 182,809 41,399 3,623 - 45,022 137,787
99
18.1 Depreciation charge for the year has been allocated to administrative expenses.

18.2 Land of the Company measuring 119 kanals 15 marlas and 62.25 sq.fts situated at Lahore having book value
of Rs. 6.149 million and all present and future moveable fixed assets and buildings of Packages Construction
(Private) Limited (‘PCPL’) in aggregate, have been mortgaged under a first exclusive equitable charge of Rs.
7,333.334 million in favor of MCB Bank Limited against a term finance facility of upto Rs. 4.5 billion and a
running finance facility of upto Rs. 1 billion provided to PCPL by MCB Bank Limited under a tri-partite agreement
between the Company, MCB Bank Limited and PCPL.

18.3 Fair value of the investment property, based on the valuation carried out by an independent valuer, as at
December 31, 2015 is Rs. 2,954.139 million (2014: Rs. 2,298.274 million). The valuation is considered to be
level 2 in the fair value hierarchy due to significant observable inputs used in the valuation. The different levels
have been defined in note 44.4.

Valuation techniques used to derive level 2 fair values
Level 2 fair value of investment property has been derived using a sales comparison approach. Sale prices of
comparable land and buildings in close proximity are adjusted for differences in key attributes such as location
and size of the property. The most significant input into this valuation approach is price per square foot.
19. Intangible assets
This represents computer software and ERP system.
Cost
As at January 1 189,270 169,335
Additions - 20,814
Deletions - (879)
As at December 31 189,270 189,270

Accumulated amortisation
As at January 1 (151,618) (137,150)
Amortisation for the year 19.1 (16,923) (15,347)
Deletions - 879
As at December 31 (168,541) (151,618)
20,729 37,652

19.1 The amortisation charge for the year has been allocated as follows:
Cost of sales 28 9,733 7,329

16,923 15,347

20. Investments
These represent the long term investments in:

Related parties 20.1 16,518,358 14,081,183
Others - Available for sale 20.2 28,479,160 33,223,182
44,997,518 47,304,365
100
20.1 Related parties

Subsidiaries - unquoted
DIC Pakistan Limited
3,377,248 (2014: 3,377,248) fully paid ordinary shares of Rs. 10 each
Equity held 54.98% (2014: 54.98%) 15,010 15,010
Packages Construction (Private) Limited
Equity held 99.99% (2014: 99.99%) 3,019,090 519,090
Share deposit money - 100,000
Packages Lanka (Private) Limited
44,698,120 (2014: 44,698,120) shares of SL Rupees 10 each
Equity held 79.07% (2014: 79.07%) 442,938 442,938
Anemone Holdings Limited 20.1.1
351,088 (2014: Nil) shares of US Dollar 1 each
Equity held 100.00% (2014: 0.00%) 36,675 -
CalciPack (Private) Limited 20.1.2
50,000 (2014: Nil) fully paid ordinary shares of Rs. 10 each
Equity held 100.00% (2014: 0.00%) 500 -

3,514,213 1,077,038
Joint venture - unquoted
Bulleh Shah Packaging (Private) Limited
709,718,013 (2014: 709,718,013) fully paid ordinary
shares of Rs. 10 each Equity held 65.00% (2014: 65% ) 9,973,652 9,973,652
Associates - quoted
IGI Insurance Limited 20.1.3
Equity held 10.61% (2014: 10.61%) 878,378 878,378
Market value - Rs. 3,080.636 million (2014: Rs. 3,523.518 million)
Tri-Pack Films Limited
Equity held 33.33% (2014: 33.33%) 2,141,233 2,141,233
IGI Investment Bank Limited 20.1.3
Equity held 2.17% (2014: 2.17%) 10,882 10,882
Market value - Rs. 7.239 million (2014: Rs. 10.928 million)
3,030,493 3,030,493
16,518,358 14,081,183
20.1.1 On January 5, 2015, the Company incorporated a Special Purpose Vehicle (‘SPV’), Anemone Holdings Limited
(‘AHL’), a wholly owned private limited company under the laws of Mauritius, and paid USD 100,000 (Equivalent
to PKR 10.134 million) as initial equity contribution on February 4, 2015.
101
Subsequently, on June 1, 2015, AHL acquired 55% shareholding of Flexible Packages Converters (Proprietary)
Limited (‘FPC’), a limited liability company incorporated under the laws of South Africa. The acquisition amount
of USD 8.542 million was funded by AHL through a finance facility from Habib Bank Limited, Offshore Banking
Unit, Bahrain (‘HBL Bahrain’). This facility was provided against a guarantee in the form of a Standby Letter of
Credit (‘SBLC’) issued by Habib Bank Limited Pakistan (‘HBL Pakistan’) in favor of HBL Bahrain as referred to in
note 16.1. SBLC is secured against pledge of Nestle Pakistan Limited shares owned by the Company as referred
to in note 20.2.2.
The primary source of debt financing will be dividends from FPC. In the event that there is a shortfall between
the dividends and obligations against the finance facility, this shortfall will be funded by Packages Limited.
Consequently, on November 23, 2015, the Company further contributed USD 251,088 as equity, which AHL
utilized to pay the interest amount due under the finance facility arrangement.
Furthermore, AHL also has the right to exercise a call option for the remaining 45% shares in FPC, subject
to fulfilment of certain conditions, after completion of four years from the acquisition of FPC.
20.1.2 The board of directors in its meeting held on April 22, 2015 resolved to enter into 50/50 Joint Venture arrangement
(‘JV’) with Omya Group of Switzerland (‘Omya’) subject to approval by regulatory authorities and other customary
conditions. Omya is a leading producer of industrial minerals - mainly fillers and pigments derived from calcium
carbonate and dolomite - and a worldwide distributor of specialty chemicals. The JV will set up a production
facility to supply a range of high quality ground calcium carbonate products specifically tailored to meet local
and regional markets. Consequently, a wholly owned subsidiary, “CalciPack (Private) Limited” was incorporated
for this purpose on November 13, 2015.

20.1.3 The Company’s investment in IGI Insurance Limited and IGI Investment Bank Limited is less than 20% but they are
considered to be associates as per the requirement of IAS 28 ‘Investments in Associates’ because the Company
has significant influence over the financial and operating policies of these companies through representation on
the board of directors of these companies.
20.2 Others - Available for sale

Quoted
Nestle Pakistan Limited 20.2.1 & 20.2.2
3,649,248 (2014: 3,649,248) fully paid ordinary shares of Rs 10 each
Equity held 8.05% (2014: 8.05%) 28,464,135 33,208,157
Cost - Rs. 5,778.896 million (2014: Rs. 5,778.896 million)
Unquoted 20.2.3
Tetra Pak Pakistan Limited 20.2.1
1,000,000 (2014: 1,000,000) fully paid non-voting
ordinary shares of Rs. 10 each 10,000 10,000
Coca-Cola Beverages Pakistan Limited
500,000 (2014: 500,000) fully paid ordinary shares of Rs. 10 each 5,000 5,000
Equity held 0.14% (2014: 0.14%)
Pakistan Tourism Development Corporation Limited
2,500 (2014: 2,500) fully paid ordinary shares of Rs. 10 each 25 25
Orient Match Company Limited
1,900 (2014: 1,900) fully paid ordinary shares of Rs. 100 each - -
15,025 15,025
28,479,160 33,223,182
102
20.2.1 Nestle Pakistan Limited and Tetra Pak Pakistan Limited are associated undertakings as per the Companies
Ordinance, 1984, however, for the purpose of measurement, investments in others have been classified as
available for sale as referred to in note 4.6.

20.2.2 As of December 31, 2015, an aggregate of 310,000 shares (2014: Nil) of Nestle Pakistan Limited having market
value Rs. 2,418.0 million (2014: Nil) have been pledged in favor of HBL Pakistan against issuance of SBLC in favor
of HBL Bahrain as referred to in note 20.1.1.

20.2.3 Unquoted investments, are measured at cost as it is not possible to apply any other valuation methodology.

21. Long term loans and deposits
Considered good
Loans to employees 21.1 4,177 4,350

Loan to SNGPL 21.2 32,800 49,200
Security deposits 20,026 16,782
57,003 70,332
Receivable within one year
Loans to employees 25 (1,356) (1,374)
Loan to SNGPL 25 (16,400) (16,400)
(17,756) (17,774)
39,247 52,558
21.1 These represent interest free loans to employees for purchase of motor cycles and cycles and are repayable in
monthly installments over a period of 60 to 260 months.

Loans to employees aggregating Rs. 3.360 million (2014: Rs. 2.371 million) are secured by joint registration of
motor cycles in the name of employees and the Company. The remaining loans are unsecured.

21.2 This represents an unsecured loan given to Sui Northern Gas Pipelines Limited (SNGPL) for the development
of the infrastructure for the supply of natural gas to Bulleh Shah Packaging (Private) Limited, the Joint Venture
entity. Mark up is charged at the rate of 1.5% per annum and is received annually. The remaining amount is
receivable in 2 annual installments.

22. Stores and spares
Stores [including in transit Rs. 15.037 million (2014: Rs. 12.216 million)] 259,575 270,611
Spares [including in transit Rs. 1.961 million (2014: Rs. 0.952 million)] 228,486 222,356
488,061 492,967

23. Stock-in-trade
Raw materials [including in transit Rs. 205.130 million

(2014: Rs. 185.216 million)] 1,030,641 1,340,227
Work-in-process 210,945 211,698
Finished goods 538,591 678,575
1,780,177 2,230,500
103
23.1 Finished goods with a cost Rs. 47.455 million (2014: Rs. 26.176 million) are being valued at net realisable value
of Rs. 38.995 million (2014: Rs. 23.443 million).
24. Trade debts
Considered good
Related parties - unsecured 24.1 75,795 11,965
Others 24.2 1,705,227 1,515,407
1,781,022 1,527,372
Considered doubtful 25,037 37,964
1,806,059 1,565,336
Provision for doubtful debts 24.3 (25,037) (37,964)
1,781,022 1,527,372
24.1 Related parties - unsecured
Subsidiary

Packages Construction (Private) Limited 11,695 –
Joint Venture
Associate
75,795 11,965

These are in the normal course of business and are interest free.

24.2 Others include debts of Rs. 262.170 million (2014: Rs. 158.112 million) which are secured by way of bank
guarantees and inland letters of credit.

24.3 The movement in provision during the year is as follows:
Balance as at January 1 37,964 36,922

Bad debts written off (20,928) (12,808)
Balance as at December 31 25,037 37,964
104
25. Loans, advances, deposits, prepayments and other receivables
Current portion of loans to employees 21 1,356 1,374

Current portion of loan receivable from SNGPL 21 16,400 16,400
Advances - considered good
To employees 25.1 25,456 8,388
To suppliers 23,592 53,881
49,048 62,269
Due from related parties - unsecured 25.2 1,074,499 1,583,634
Trade deposits 42,713 45,946
Prepayments
29,143 11,357
Balances with statutory authorities
Customs duty 9,301 21,966
Sales tax recoverable 92,462 26,409
101,763 48,375
Mark up receivable on
Loan to SNGPL 33 46
Term deposits and saving accounts 85 85
118 131
Other receivables 31,048 27,728
1,346,088 1,797,214

25.1 Included in advances to employees are amounts due from executives of Rs. 1.654 million (2014: Rs. 1.129
million).
25.2 Due from related parties - unsecured
Subsidiaries

Packages Lanka (Private) Limited 5,900 5,845
Packages Construction (Private) Limited 41,448 350,388
Flexible Packages Convertors (Proprietary) Limited 1,902 -
Joint venture
Bulleh Shah Packaging (Private) Limited 1,004,997 1,212,881
Associates
Tri-Pack Films Limited 174 286

IGI Finex Securities Limited 11 -
IGI Life Insurance Limited 1,599 283
1,074,499 1,583,634
105
26. Income tax receivable
Income tax refundable 2,385,002 2,211,777

Income tax recoverable 26.1 36,013 36,013
2,421,015 2,247,790

26.1 In 1987, the Income Tax Officer (ITO) re-opened the Company’s assessments for the accounting years ended
December 31, 1983 and 1984 disallowing primarily tax credit given to the Company under section 107 of the
Income Tax Ordinance, 1979. The tax credit amounting to Rs. 36.013 million on its capital expenditure for
these years was refused on the grounds that such expenditure represented an extension of the Company’s
undertaking which did not qualify for tax credit under this section in view of the Company’s location. The
assessments for these years were revised by the ITO on these grounds and taxes reassessed were adjusted
against certain sales tax refunds and the tax credits previously determined by the ITO and set off against the
assessments framed for these years.

The Company had filed an appeal against the revised orders of the ITO before the Commissioner of Income Tax
(Appeals) [CIT(A)], Karachi. CIT(A) in his order issued in 1988, held the assessments reframed by the ITO for the
years 1983 and 1984 presently to be void and of no legal effect. The ITO has filed an appeal against the CIT(A)’s
order with the Income Tax Appellate Tribunal (ITAT). The ITAT has in its order issued in 1996 maintained the
order of CIT(A). The assessing officer after the receipt of the appellate order passed by CIT(A), had issued notices
under section 65 of the Income Tax Ordinance, 1979 and the Company had filed a writ petition against the
aforesaid notices with the High Court of Sindh, the outcome of which is still pending.

The amount recoverable Rs. 36.013 million represents the additional taxes paid as a result of the disallowance
of the tax credits on reframing of the assessments.

27. Cash and bank balances
At banks:
On saving account 27.1 7,830 13,481

On current accounts [including USD Nil (2014: USD 674)] 27.2 89,484 232,428
97,314 245,909
In hand 4,426 6,583
101,740 252,492
27.1 The balances in saving accounts bear mark up which ranges from 4.0% to 5.0% (2014: 6.0% to 7.0%) per annum.
27.2 Included in these are total restricted funds of Rs. 1.332 million (2014: Rs. 1.332 million) held as payable to TFC
holders.
106

28. Cost of sales
Materials consumed 9,005,224 9,130,892

Salaries, wages and amenities 28.1 1,068,262 961,884
Travelling
29,378 26,620
Fuel and power 636,592 1,080,433
Production supplies 358,888 368,763
Excise duty and sales tax 2,607 3,359
Rent, rates and taxes 28.2 5,947 139,367
Insurance
41,443 42,133
Repairs and maintenance 364,910 325,962
Packing expenses 289,454 263,983
Depreciation on owned assets 17.1.3 510,634 485,716
Depreciation on assets subject to finance lease 17.2.1 1,090 1,039
Amortisation of intangible assets 19.1 9,733 7,329
Technical fee and royalty 20,855 20,073
Other expenses 177,815 156,975
12,522,832 13,014,528
Opening work-in-process 211,698 222,374
Closing work-in-process (210,945) (211,698)
Cost of goods produced 12,523,585 13,025,204

Opening stock of finished goods 678,575 526,196
13,202,160 13,551,400
Closing stock of finished goods (538,591) (678,575)
12,663,569 12,872,825

Cost of goods produced includes Rs. 1,599.427 million (2014: Rs. 2,106.354 million) for stores and spares
consumed, Rs. 55.254 million (2014: Rs. 18.827 million) and Rs. 6.226 million (2014: Rs. 16.280 million) for
raw material and stores and spares written off respectively.

28.1 Salaries, wages and amenities
Salaries, wages and amenities include following in

respect of retirement benefits:

Gratuity
Current service cost 10,995 10,402

Net interest on net defined benefit liability / asset (2,576) (1,204)
8,419 9,198

In addition to above, salaries, wages and amenities include Rs. 20.663 million (2014: Rs. 17.762 million),
Rs. 33.290 million (2014: Rs. 28.085 million) and Rs. 30.176 million (2014: Rs. 33.628 million) in respect of
provident fund contribution, pension fund contribution and accumulating compensated absences respectively.

28.2 Rent, rates and taxes include operating lease / ijarah rentals amounting to Nil (2014: Rs. 136.371 million).
107
29. Administrative expenses
Salaries, wages and amenities 29.1 447,793 381,549

Travelling
29,199 43,686
Insurance
16,038 12,540
Printing, stationery and periodicals 17,555 17,195
Postage, telephone and telex 13,430 12,989
Motor vehicles running 7,417 15,530
Computer charges 19,509 21,293
Professional services 29.3 48,931 98,076
Depreciation on investment property 18.1 4,269 3,623
752,730 787,249

Administrative expenses include Rs. 83.545 million (2014: Rs. 65.361 million) for stores and spares
consumed.

Salaries, wages and amenities include following

in respect of retirement benefits:

Pension
Net interest on net defined benefit (liability) / asset (6,117) 72
Gratuity
Net interest on net defined benefit liability / asset (1,239) (481)
3,620 3,672

In addition to above, salaries, wages and amenities include Rs. 9.936 million (2014: Rs. 7.046 million), Rs.
16.008 million (2014: 11.141 million) and Rs. 14.511 million (2014: Rs. 13.339 million) in respect of provident
fund contribution, pension fund contribution and accumulating compensated absences respectively.

29.2 Rent, rates and taxes include operating lease rentals amounting to Rs. 10.287 million (2014: Rs. 9.917 million).
108
29.3 Professional services
The charges for professional services include the following

in respect of auditors’ services for:
Statutory audit 2,600 2,400
Half yearly review 800 750
Tax services 5,000 3,008
Advisory services - 12,500
Workers’ profit participation fund audit, management staff pension
and gratuity fund audit, audit of consolidated financial statements
and other certification charges 2,000 1,107
Out of pocket expenses 686 651
11,086 20,416

30. Distribution and marketing costs

Travelling 19,605 27,027
Freight and distribution 122,808 141,234
Insurance
28,512 23,678
Advertising
247,555 177,613
Depreciation on assets subject to finance lease 17.2.1 261 65
Provision for doubtful debts - net 8,001 2,784
677,944 580,062

Distribution and marketing costs include Rs. 19.876 million (2014: Rs. 11.435 million) for stores and spares
consumed.

Salaries, wages and amenities include following in respect

of retirement benefits:

Gratuity

Net interest on net defined benefit liability / asset (504) (185)
1,646 1,412

In addition to above, salaries, wages and amenities include Rs. 4.041 million (2014: Rs. 2.702 million), Rs. 6.510
million (2014: Rs. 4.273 million) and Rs. 5.901 million (2014: Rs. 5.116 million) in respect of provident fund
contribution, pension fund contribution and accumulating compensated absences respectively.
109

31. Other operating expenses

Worker’s profit participation fund 14.4 204,216 147,665
Exchange loss - net 33,278 -
Impairment of property, plant and equipment 12,051 -
Advances written off 9,542 -
Donations 31.1 10,416 18,190
347,105 221,968

31.1 Following is the interest of directors in the donee during the year:

Name of donee Director of the Company Interest in Rupees in
donee thousand

Pakistan Centre for Philanthropy Syed Hyder Ali Director 1,250
Packages Foundation Syed Hyder Ali Trustee 8,980
Rizwan Ghani Trustee

No other directors and their spouses had any interest in any of the donees during the year.
32. Other income

Income from financial assets
Income on bank deposits 1,160 3,315
Interest on loan to SNGPL 725 976
1,885 4,291
Income from non-financial assets
Rental income from investment property [including Rs. 66 million
(2014: Rs. 61.846 million) from related parties] 32.1 70,795 65,310
Profit on disposal of property, plant and equipment 64,949 79,285
Scrap sales 87 32,426
135,831 177,021

Others
Management and technical fee from related party 21,184 19,673
Insurance commission from related party 4,991 2,660
Provisions and unclaimed balances written back 54,778 40,828
Exchange gain - 16,224
Gain on remeasurement of financial instrument - 27,272
Others [including Rs. 11.397 million (2014: Rs. 20.248 million)
from related parties] 25,353 34,178
106,306 140,835
244,022 322,147
32.1 The expenses relating directly to the income from investment property amount to Rs. 0.371 million (2014: Rs.
0.386 million).

110
32.2 The future minimum lease payments receivable under non-cancellable operating leases are as follows:

45,406 49,412
33. Finance costs

Interest and mark up including commitment charges on
Long term finances - secured 191,530 302,270
Liabilities against assets subject to finance lease 2,041 2,193
Return on preference shares / convertible stock 336,050 355,050
Loan handling charges 232 1,232
Commission on guarantees 14,932 1,206
Bank charges 2,747 1,954
643,032 751,551

34. Investment income
Dividend income from related parties 34.1 230,532 109,244
Dividend income from others 2,387,359 2,444,434
2,617,891 2,553,678

34.1 Dividend income from related parties
Subsidiaries
Packages Lanka (Private) Limited 69,170 23,942
Associate
IGI Insurance Limited 65,110 17,757
230,532 109,244

35. Tax
Current
Current year 35.1 424,393 356,000
Prior years 88,603 106,925
512,996 462,925
Deferred (5,902) (249,709)
507,094 213,216

35.1 The provision for current tax represents tax under ‘Final Tax Regime’ and Alternate corporate taxation under
section 113 C of the Income Tax Ordinance, 2001 as per circular no. 2 of 2014.
The investment tax credit amounting to Rs. 57.752 million (2014: Rs. 54 million) available to the Company by
virtue of investment in plant and machinery in accordance with Section 65B of the Income Tax Ordinance, 2001
has been netted off against the current tax charge for the year.
111
(Percentage) 2015 2014
35.2 Tax charge reconciliation
Numerical reconciliation between the average effective tax rate

and the applicable tax rate
Applicable tax rate 32.00 33.00
Tax effect of amounts that are:
Not deductible for tax purposes 1.19 1.89
Exempt for tax purposes (0.18) (0.56)
Chargeable to tax at different rates (14.60) (21.96)
Impact of change in tax rate (1.43) 0.13
Effect of change in prior years’ tax 2.33 3.89
Tax credits and losses recognised during the year (4.45) (6.68)
Investment tax credit (1.52) (1.96)
(18.66) (25.25)
Average effective tax rate charged to profit and loss account 13.34 7.75
36. Remuneration of Chief Executive, Directors and Executives
36.1 The aggregate amount charged in the financial statements for the year for remuneration, including certain
benefits, to the Chief Executive, full time working Directors and Executives of the Company are as follows:
Chief Executive Directors Executives


Short term employee benefits
Managerial remuneration 16,819 14,583 7,209 14,982 117,106 110,989

Housing 6,786 5,811 2,806 8,495 57,994 61,426
Utilities 1,508 1,291 623 1,419 13,709 13,403
Bonus 16,643 3,767 6,985 3,179 93,639 42,927
Leave passage 4,498 4,545 521 2,089 3,323 4,530
Medical expenses 3,159 2,152 119 228 1,391 1,182
Club expenses 33 28 17 320 - -
Others - - - - 28,749 30,209
49,446 32,177 18,280 30,712 315,911 264,666

Post employment benefits
Contribution to provident,
gratuity and pension funds 5,271 4,456 2,159 3,021 29,079 28,735
Other long term benefits
Accumulating compensated
absences 3,694 2,432 886 502 11,041 13,454
58,411 39,065 21,325 34,235 356,031 306,855
Number of persons 1 1 1 3 82 84

The Company also provides the Chief Executive and some of the Directors and Executives with free transport and
residential telephones.
112
36.2 Remuneration to other directors
Aggregate amount charged in the financial statements for the year for fee to 5 non-executive directors (2014:
5 non-executive directors) is Rs. 2,775,000 (2014: Rs. 1,700,000).
37. Transactions with related parties
The related parties comprise subsidiaries, joint venture, associates, directors, key management personnel and
post employment benefit plans. The Company in the normal course of business carries out transactions with
various related parties. Amounts due from and to related parties are shown under receivables and payables,
amounts due from directors and key management personnel are shown under receivables and remuneration
of directors and key management personnel is disclosed in note 36. Other significant transactions with related
parties are as follows:

Relationship with the Nature of transactions 2015 2014
Company (Rupees in thousand)

i. Subsidiaries Purchase of goods and services 1,020,831 967,061
Sale of goods and services 51,883 40,444
Investments made 2,437,175 600,000
Dividend income 165,423 91,487
Rental and other income 19,311 17,217
Management and technical fee 21,184 19,673
Expenses incurred on behalf of
the subsidiaries 328,036 344,369

ii. Joint venture Purchase of goods and services 2,641,871 2,728,525
Purchase of property, plant & equipment 437 -
Sale of property, plant & equipment 47,719 -

iii. Associates Purchase of goods and services 1,028,873 1,179,015
Insurance premium 144,221 107,617
Commission earned 4,991 2,659
Insurance claims received 1,177 1,463
Rental and other income 573 458
the associate - 283

iv. Post employment benefit Expense charged in respect of
plans retirement benefit plans 76,958 85,365

All transactions with related parties have been carried out on mutually agreed terms and conditions.
There are no transactions with key management personnel other than under the term of employment.
113
38. Capacity and production - tons

Capacity Actual production
2015 2014 2015 2014

Paper and paperboard produced 41,400 41,400 11,131 10,116
Paper and paperboard converted 45,526 45,526 34,510 32,511
Plastics all sorts converted 20,000 20,000 17,463 17,553

The variance of actual production from capacity is primarily on account of the product mix.
2015 2014

39. Number of employees
Total number of employees as at December 31 1,482 1,528
Average number of employees during the year 1,501 1,562

40. Rates of exchange
Liabilities in foreign currencies have been translated into PKR at USD 0.9542 (2014: USD 0.9940), EURO 0.8731
(2014: EURO 0.8172), CHF 0.9437 (2014: CHF 0.9828), SEK 8.0257 (2014: SEK 7.6982), GBP 0.6437 (2014: GBP
0.6384), SGD 1.3490 (2014: SGD 1.3134) and YEN 114.8633 (2014: YEN 118.7366) equal to Rs. 100. Assets in
foreign currencies have been translated into PKR at USD 0.9560 (2014: USD 0.9960) equal to Rs. 100.
41. Cash generated from operations

Adjustments for:
Gain on remeasurement of financial instrument 32 - (27,272)
Depreciation on investment property 18 4,269 3,623
Amortisation on intangible assets 19 16,923 15,347
Provision for accumulating compensated absences 11 50,528 52,084
Provision for employees’ retirement benefit funds 10 7,568 14,354
Provision for doubtful debts 24.3 8,001 13,850
Net profit on disposal of property, plant and equipment 32 (64,949) (79,285)
Impairment of property, plant and equipment 31 12,051 -
Advance written off 31 9,542 -
Finance costs 33 643,032 751,551
Dividend income 34 (2,617,891) (2,553,678)
Profit before working capital changes 2,417,113 1,456,642
Effect on cash flow due to working capital changes:

Decrease in stores and spares 4,906 75,626
Decrease / (increase) in stock-in-trade 450,323 (165,599)
(Increase) / decrease in trade debts (261,651) 82,598
Decrease / (increase) in loans, advances, deposits,
prepayments and other receivables 441,584 (328,690)
Increase in trade and other payables 129,759 311,829
764,921 (24,236)
3,182,034 1,432,406
114

42. Cash and cash equivalents

Finances under mark up arrangements - secured 13 (884,481) (1,262,596)
(782,741) (1,010,104)
2015 2014
43. Earnings per share

43.1 Basic earnings per share
Profit for the year Rupees in thousand 3,295,416 2,536,304

Weighted average number of ordinary shares Numbers 88,069,915 84,864,436
Earnings per share Rupees 37.42 29.89

43.2 Diluted earnings per share

Return on preference shares /
convertible stock - net of tax Rupees in thousand 270,990 284,248
3,566,406 2,820,552

Weighted average number of notionally
converted preference shares / convertible stock Numbers 17,996,431 21,201,910
106,066,346 106,066,346

Diluted earnings per share Rupees 33.62 26.59

44. Financial risk management
44.1 Financial risk factors
The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, fair
value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Company’s
overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the Company’s financial performance. The Company uses derivative financial
instruments to hedge certain risk exposures.

Risk management is carried out by the Company’s finance department under policies approved by the Board of
Directors. The Company’s finance department evaluates and hedges financial risks. The Board provides written
principles for overall risk management, as well as written policies covering specific areas, such as foreign
exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial
instruments, and investment of excess liquidity.
The Company’s overall risk management procedures to minimise the potential adverse effects of financial
market on the Company’s performance are as follows:

(a) Market risk
(i) Foreign exchange risk
Foreign exchange risk is the risk that the fair value of future cash flows of a financial instrument shall fluctuate
because of changes in foreign exchange rates.
115
The Company operates internationally and is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US dollar and the Euro. Foreign exchange risk arises from future
commercial transactions and recognised assets and liabilities. Foreign exchange risk arises when future
commercial transactions or recognised assets or liabilities or net investments in foreign operations that are
denominated in a currency that is not the Company’s functional currency.

At December 31, 2015, if the Rupee had strengthened / weakened by 10% against the US dollar with all other
variables held constant, post-tax profit for the year would have been Rs. 18.292 million higher / lower (2014:
Rs. 25.831 million higher / lower), mainly as a result of foreign exchange gains / losses on translation of US
dollar-denominated financial assets and liabilities.

At December 31, 2015, if the Rupee had strengthened / weakened by 10% against the Euro with all other
Rs. 82.493 million higher / lower), mainly as a result of foreign exchange gains / losses on translation of Euro-
denominated financial assets and liabilities.

(ii) Price risk
Price risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices (other than those arising from interest rate risk or currency risk), whether
those changes are caused by factors specific to the individual financial instrument or its issuer, or factors
affecting all similar financial instruments traded in the market. The Company is exposed to equity securities
price risk because of investments held by the Company and classified as available for sale. The Company is not
exposed to commodity price risk. To manage its price risk arising from investments in equity securities, the
Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the
board of directors.

The Company’s quoted investments in equity of other entities are publicly traded on Pakistan Stock Exchange.

The table below summarises the impact of increases / decreases of the KSE-100 index on the Company’s
post-tax profit for the year and on equity. The analysis is based on the assumption that the KSE-100 index had
increased / decreased by 10% with all other variables held constant and all the Company’s equity instruments
moved according to the historical correlation with the index:
Impact on post - tax profit Impact on other components of equity


Pakistan Stock Exchange - - 1,366,278 (564,539)

Post-tax profit for the year would decrease / increase as a result of losses / gains on equity securities classified
as at fair value through profit or loss. Other components of equity would decrease / increase as a result of losses
/ gains on equity securities classified as available for sale.

(iii) Cash flow and fair value interest rate risk
As the Company has no significant floating interest rate assets, the Company’s income is substantially
independent of changes in market interest rates.

The Company’s interest rate risk arises from short term and long term borrowings. These borrowings issued at
variable rates expose the Company to cash flow interest rate risk.

The Company analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking
into consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these
scenarios, the Company calculates the impact on profit and loss of a defined interest rate shift. The scenarios
are run only for liabilities that represent the major interest-bearing positions.

116
At December 31, 2015, if interest rates on floating rate borrowings had been 1% higher / lower with all other
variables held constant, post-tax profit for the year would have been Rs 19.517 million (2014: Rs. 22.515
million ) lower / higher, mainly as a result of higher / lower interest expense on floating rate borrowings.

(b) Credit risk
Credit risk represents the risk of financial loss being caused if counter party fails to discharge an obligation.
Credit risk of the Company arises from cash and cash equivalents, derivative financial instruments and deposits
with banks and financial institutions, as well as credit exposures to distributors and wholesale and retail
customers, including outstanding receivables and committed transactions. The management assesses the
credit quality of the customers, taking into account their financial position, past experience and other factors.
Individual risk limits are set based on internal or external ratings in accordance with limits set by the board.
The utilisation of credit limits is regularly monitored and major sales to retail customers are settled in cash. For
banks and financial institutions, only independently rated parties with a strong credit rating are accepted.

The Company monitors the credit quality of its financial assets with reference to historical performance of such
assets and available external credit ratings. The carrying values of financial assets exposed to credit risk and
which are neither past due nor impaired are as under:


Long term loans and deposits 39,247 52,558
Trade debts 1,313,540 1,079,492
Loans, advances, deposits, prepayments and other receivables 1,346,088 1,797,214
Balances with banks 97,314 245,909
2,796,189 3,175,173

As of December 31, 2015, trade receivables of Rs. 467.482 million (2014: Rs. 447.880 million) were past due
but not impaired. These relate to a number of independent customers for whom there is no recent history of
default. The aging analysis of these trade receivables is as follows:


Up to 90 days 412,960 410,287
90 to 180 days 46,119 27,268
181 to 365 days 8,403 10,325
467,482 447,880

The management estimates the recoverability of trade receivables on the basis of financial position and past
history of its customers based on the objective evidence that it shall not receive the amount due from the
particular customer. The provision is written off by the Company when it expects that it cannot recover the
balance due. Any subsequent repayments in relation to amount written off, are credited directly to profit and
loss account.

The aging analysis of trade receivables from related parties as at balance sheet date is as follows:
Up to 90 days 12,164 2,548

90 to 180 days 4,190 845
181 to 365 days 694 349
17,048 3,742
117
The credit quality of Company’s bank balances can be assessed with reference to external credit ratings as
follows:

Rating Rating
(Rupees in thousand) Short term Long term Agency 2015 2014

Bank Alfalah Limited A1+ AA PACRA 1,184 -
Citibank N.A. P-1 A2 Moody’s 357 204
Deutsche Bank A.G. P-2 A3 Moody’s 70,970 85,055
Dubai Islamic Bank
(Pakistan) Limited A1 A+ JCR-VIS - 712
Faysal Bank Limited A1+ AA PACRA - 351
Habib Bank Limited A1+ AAA JCR-VIS 928 924
Al Baraka Bank
(Pakistan) Limited A1 A PACRA 1 -
JS Bank Limited A1+ A+ PACRA 282 78
MCB Bank Limited A1+ AAA PACRA 23 3,062
Meezan Bank Limited A1+ AA JCR-VIS 1,971 111,684
National Bank of Pakistan A1+ AAA PACRA 11,941 3
NIB Bank Limited A1+ AA- PACRA 681 329
Samba bank A1 AA JCR-VIS 1,332 1,675
Standard Chartered Bank
Pakistan Limited A1+ AAA PACRA 7,492 41,638
The Bank of Punjab A1+ AA- PACRA 152 194
97,314 245,909

(c) Liquidity risk
Liquidity risk represents the risk that the Company shall encounter difficulties in meeting obligations associated
with financial liabilities.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability
of funding through an adequate amount of committed credit facilities. Due to the dynamic nature of the
Company’s businesses, the Company’s finance department maintains flexibility in funding by maintaining
availability under committed credit lines.

Management monitors the forecasts of the Company’s cash and cash equivalents (note 42) on the basis of
expected cash flow. This is generally carried out in accordance with practice and limits set by the Company.
These limits vary by location to take into account the liquidity of the market in which the entity operates.
In addition, the Company’s liquidity management policy involves projecting cash flows in each quarter and
considering the level of liquid assets necessary to meet its liabilities, monitoring balance sheet liquidity ratios
against internal and external regulatory requirements and maintaining debt financing plans.
The table below analyses the Company’s financial liabilities and net-settled derivative financial liabilities into
relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash flows as the impact of discounting is
not significant.
118
At December 31, 2015

Less than 1 Between 1 and Between 2 and Over
(Rupees in thousand) year 2 years 5 years 5 years

Long term finances 385,714 571,428 1,142,858 -
Liabilities against assets
subject to finance lease 6,571 7,411 20,242 -
Finances under mark
up arrangements - secured 884,481 - - -
Trade and other payables 3,278,124 - - -
Accrued finance cost 349,282 - - -
4,904,172 578,839 1,163,100 -

Less than 1 Between 1 and Between 2 and Over
(Rupees in thousand) year 2 years 5 years 5 years

Long term finances 200,000 385,710 485,710 1,228,580
Finances under mark
up arrangements - secured 1,262,596 - - -
Accrued finance cost 517,634 - - -
5,129,606 390,941 506,164 1,228,580

44.2 Financial instruments by categories
The carrying values of following financial assets and liabilities reflected in the financial statements approximate
their fair values. Fair value is determined on the basis of objective evidence at reporting date.
Loans and receivables

Financial assets

Trade debts 1,781,022 1,527,372
3,263,671 3,623,053

At amortised cost
Financial liabilities
Long term finances - secured 2,100,000 2,300,000

Finances under markup arrangements - secured 884,481 1,262,596
Trade and other payables 3,278,124 3,144,680
Accrued finance cost 349,282 517,634
6,646,111 7,255,291
119
44.3 Capital risk management
The Company’s objectives when managing capital are 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.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic
conditions. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends
paid to shareholders or issue new shares. Consistent with the others in industry, the Company monitors capital
on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated
as total borrowings including the current and non-current borrowings as disclosed in note 7 less cash and cash
equivalents as disclosed in note 42. Total capital is calculated as equity as shown in the balance sheet plus net
debt. The gearing ratio as at year end is as follows:


Current portion of long term finances 7 385,714 200,000
Cash and cash equivalents 42 782,741 1,010,104
Net debt 4,897,636 5,438,919

Total equity 47,786,373 50,002,727
Total capital 52,684,009 55,441,646
Gearing ratio 9% 10%

44.4 Fair value of financial instruments
Fair value is the amount for which an asset could be exchanged, or liability settled, between knowledgeable
willing parties in an arm’s length transaction. Underlying the definition of fair value is the presumption that the
Company is a going concern without any intention or requirement to curtail materially the scale of its operations
or to undertake a transaction on adverse terms. The carrying values of all financial assets and liabilities reflected
in these financial statements approximate their fair values. Fair value is determined on the basis of objective
evidence at each reporting date.

The carrying amount less impairment provision of trade receivables and payables are assumed to approximate
their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the
future contractual cash flows at the current market interest rate that is available to the Company for similar
financial instruments.

Specific valuation techniques used to value financial instruments include:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices) (level 2)
- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
(level 3)

The following table presents the Company’s assets that are measured at fair value:

(Rupees in thousand) Level 1 Level 2 Level 3 Total

Assets
Recurring fair value measurement of
available-for-sale investments 28,464,135 - - 28,464,135
120


Assets

Valuation techniques used to measure fair values
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance
sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange,
dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and
regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial
assets held by the Company is the current bid price. These instruments are included in Level 1. The fair value
of financial instruments that are not traded in an active market is determined by using valuation techniques.
These valuation techniques maximize the use of observable market data where it is available and rely as little as
possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in Level 2. If one or more of the significant inputs is not based on observable market
data, the instrument is included in Level 3.

There were no other material Level 1, 2 or 3 assets or liabilities during current or prior year.

There were no transfers between levels 1 and 2 for recurring fair value measurements during the year.

45. Date of authorisation for issue
These financial statements were authorised for issue on February 25, 2016 by the Board of Directors of the
Company.

46. Non-adjusting events after the balance sheet date
On February 2, 2016, IFC exercised its right to convert 1,000,000 (2014: 1,000,000) preference share
/ convertible stock of Rs 190 each into 1,000,000 (2014: 1,000,000) ordinary shares of Rs. 10 each. This
conversion is expected to take place prior to book closure date.
The Board of Directors has proposed a final cash dividend for the year ended December 31, 2015 of Rs. 15 per
share (2014: Rs. 9.00 per share), at their meeting held on February 25, 2016 for approval of the members at the
Annual General Meeting to be held on April 25, 2016. The Board has also recommended to transfer Rs. 1,500
million (2014: Rs. 1,500 million) to general reserve from unappropriated profit.

The Finance Act, 2015 introduced income tax at the rate of 10% on undistributed reserves where such reserves
of the Company are in excess of its paid up capital and the Company derives profits for a tax year but does not
distribute requisite cash dividend within six months of the end of the said tax year. Liability in respect of such
income tax, if any, is recognised when the prescribed time period for distribution of dividend expires.

47. Corresponding figures
Corresponding figures have been re-arranged and reclassified, wherever necessary, for the purposes of
comparison. However, no significant reclassifications have been made.

121
122
CONSOLIDATED FINANCIAL STATEMENTS 2015
Consolidated Financial Statements

For the year ended December 31, 2015
123
DIRECTORS’ REPORT
On The Consolidated Financial Statements
For The Year Ended December 31, 2015
The Directors of Packages Limited are pleased to present the audited consolidated
financial statements of the Group for the year ended December 31, 2015.
Group results
The Group has performed well during the current year.
The comparison of annual audited results for the year 2015 as against year 2014 is as follows:
(Rupees in million)
2015 2014
Invoiced sales – net 22,060 18,727
Profit from operations 2,602 1,468
Share of profit / (loss) in associates and joint venture 233 (215)
Investment income 2,387 2,444
Profit after tax 3,397 2,540
During the year 2015, the Group

has achieved net sales of Rs.
DIC Pakistan Packages Lanka
22,060 million against net sales of Limited (Private) Limited
Rs. 18,727 million achieved during
last year which is an increase of
DIC Pakistan Limited is a non- Packages Lanka (Private) Limited
18%.
listed public limited subsidiary of is a Sri Lanka based subsidiary of
Packages Limited. It is principally Packages Limited. It is primarily
The Group has achieved Profit from
engaged in manufacturing, engaged in production of
operations of Rs. 2,602 million
processing and selling of flexible packaging solutions. The
during 2015 as against that of
industrial inks. The Company has Company has achieved turnover of
Rs. 1,468 million achieved during
achieved net sales of Rs. 3,443 SLR 1,798 million during the year
2014 representing an increase of
million during the year 2015 as 2015 as compared to SLR 1,653
Rs. 1,134 million i.e. 77%.
compared to Rs. 3,188 million million of 2014 representing
of last year representing sales growth of 9%. The Company has
A brief review of the operational
growth of 8%. The Company has generated profit before tax of
performance of the Group entities
generated profit before tax of SLR 249 million in the year 2015
is as follows:
Rs. 486 million during the year as compared to SLR 151 million
2015 as against Rs. 353 million of 2014. This increase in profit is
of 2014 representing growth of mainly attributable to operational
38% resulting from sales growth efficiencies that include waste
and operational efficiencies. reduction efforts and also due to
Moving forward, the Company will reduced finance cost on account
continue its focus on improving of repayments of availed financing
operating results through volume facilities. Moving forward, the
growth, tighter operating cost Company will focus on improving
control, product diversification, operating results through
price rationalisation and better tighter operating cost control,
working capital management. product diversification and price
rationalisation.
124
Bulleh Shah Flexible Packages

Packaging Packages Construction
(Private) Limited Convertors (Pty) (Private) Limited
Limited
Bulleh Shah Packaging (Private) As part of its asset and income
Limited is a private limited diversification strategy, the
In June 2015, the Company
company. It is principally engaged Company’s development of a high
completed its acquisition of the
in the manufacturing and quality retail mall at its Lahore
operations of a flexible packaging
conversion of paper & paperboard land through its wholly owned
company in South Africa in line
products. The entity started its subsidiary, Packages Construction
with its strategy to support its
commercial operations in April (Private) Limited is underway.
customer’s expansion into high
2013 upon transfer of Paper
growth African markets. The
& Paperboard and Corrugated The construction of the mall is
management believes that the
businesses from Packages Limited. based on inputs from international
acquisition shall be advantageous
The Company has achieved sales retail consultants. Space is being
to its shareholders. The Company
of Rs. 15,784 million during the leased out with a tenancy mix
achieved net sales revenue of ZAR
year ended December 31, 2015 aimed to appeal to a wide cross
272 million with profit before tax
as compared to Rs. 16,572 million section of the market including
of ZAR 14 million for the seven
during 2014.The Company has major anchor tenants, cinemas,
months ended December 31,
recorded loss before tax of Rs. food courts, international brand
2015.
126 million during the year 2015 specialty shops, local brands and
as against loss of Rs. 13 million retailers. The mall is expected to
in 2014 primarily on account of be operational in 2016.
lower sales. This is mainly due
to dumping of writing/printing
paper and white board for which
anti-dumping applications are
under review with the relevant
authorities.
As part of management’s strategy

to overcome the power shortage
and to secure uninterrupted
power supply to the operations,
the Company has installed a bio-
mass boiler. Moving forward,
the Management will also
continue its focus on increasing
revenue, tighter cost controls and (Towfiq Habib Chinoy) (Syed Hyder Ali)
operational efficiencies to improve Chairman Chief Executive & Managing Director
the Company’s operating results. Karachi, February 25, 2016 Karachi, February 25, 2016
125
‫مجموعی مالیاتی حسابات پر ڈائریکٹرز کی رپورٹ‬
‫اور وائٹ بورڈ کو ڈمپ کرنے کے باعث ہوا جس کے‬ ‫گیا تھا جس سے ‪38‬فیصد گروتھ ظاہر ہوتی ہے جو‬
‫لئے متعلقہ حکام کے ساتھ اینٹی ڈمپنگ ایپلی کیشنز‬ ‫کہ سیلز گروتھ اور ا ٓپریشنل کارکردگی میں بہتری کی‬
‫کا جائزہ لیا جارہا ہے۔‬ ‫وجہ سے ہے۔ مستقبل کو دیکھتے ہوئے کمپنی ترقی‬ ‫پیکیجز لمیٹڈ کے ڈائریکٹرز ‪31‬دسمبر‬
‫کے حجم‪ ،‬ا ٓپریٹنگ الگت پر موثر کنٹرول‪ ،‬پروڈکٹس‬
‫بجلی بحران پر قابو پانے اور ا ٓپریشنز کے لئے بالتعطل‬ ‫میں توسیع‪ ،‬نرخوں کی تقسیم اور بہتر ورکنگ کیپٹل‬ ‫‪2015‬کو ختم ہونے والے سال کے لئے گروپ‬
‫پاور سپالئی کے تحفظ کے لئے انتظامیہ کی حکمت‬ ‫مینجمنٹ کے ذریعے ا ٓپریٹنگ نتائج کو مزید بہتر‬ ‫کے ا ٓڈٹ شدہ مجموعی مالیاتی حسابات‬
‫عملی کے حصہ کے طور پر کمپنی نے بایو‪-‬ماس بوائلر‬ ‫بنانے پر توجہ دینے کا سلسلہ جاری رکھے گی۔‬ ‫پیش کرتے ہوئے فخر محسوس کررہے ہیں۔‬
‫نصب کیا ہے۔ مستقبل کو دیکھتے ہوئے انتظامیہ‬
‫ا ٓمدنی میں اضافے‪ ،‬الگت پر موثر کنٹرول اور ا ٓپریشنل‬ ‫پیکیجز لنکا (پرائیویٹ) لمیٹڈ‬ ‫گروپ کے نتائج‬
‫کارکردگی کو بہتر بنانے پر توجہ مرکوز کرتے ہوئے‬ ‫پیکیجز لنکا (پرائیویٹ) لمیٹڈ سری لنکا میں قائم پیکیجز‬
‫کمپنی کے ا ٓپریٹنگ نتائج بہتر بنائے گی۔‬ ‫گروپ کی کارکردگی سال رواں کے دوران بہترین رہی۔‬
‫لمیٹڈ کا ایک ذیلی ادارہ ہے۔ یہ بنیادی طور پر فلیکس‬
‫سال ‪2015‬کے لئے ساالنہ ا ٓڈٹ نتائج گزشتہ سال‬
‫ایبل پیکیجنگ سولیوشنز میں مصروف عمل ہے۔ کمپنی‬
‫فلیکس ایبل پیکیجز کنورٹرز (پروپرائٹری)‬ ‫‪2014‬کے مقابلے میں مندرجہ ذیل رہے‬
‫نے سال ‪2015‬کے دوران ‪1,798‬ملین سری لنکن روپے کا‬
‫لمیٹڈ‬ ‫ ‬
‫ٹرن اوور حاصل کیا جبکہ ‪2014‬میں یہ ‪1,653‬ملین سری‬
‫جون ‪2015‬میں کمپنی نے جنوبی افریقہ میں ایک‬ ‫ ‪ 2014‬‬ ‫ ‪2015‬‬
‫لنکن روپے تھا جس سے ‪9‬فیصد ترقی ظاہر ہوتی ہے۔‬
‫فلیکس ایبل پیکیجنگ کمپنی کے ا ٓپریشنز کا حصول‬ ‫کمپنی نے سال ‪2015‬میں ‪249‬ملین سری لنکن روپے‬ ‫ )روپے ملین میں( ‬
‫مکمل کیا جو بہترین گروتھ کی حامل افریقی مارکیٹوں‬ ‫کا قبل از ٹیکس منافع حاصل کیا برخالف ‪2014‬میں یہ‬ ‫ ‬
‫میں اپنے صارفین کی توسیع کے لئے سپورٹ کے ضمن‬ ‫‪151‬ملین سری لنکن روپے تھا۔ منافع میں یہ اضافہ‬ ‫ ‪ 18,727 22,060‬‬ ‫انوائسڈ سیلز‪ -‬خالص‬
‫میں اس کی حکمت عملی کا حصہ تھی۔ انتظامیہ‬ ‫ا ٓپریشنل کارکردگی میں بہتری کی بدولت ممکن ہوا جس‬ ‫ ‪ 1,468‬‬ ‫ ‪2,602‬‬ ‫ا ٓپریشنز سے منافع‬
‫اس امر پر یقین رکھتی ہے کہ یہ حصول اس کے شیئر‬ ‫میں ویسٹ میں کمی کی کوششوں کے دخل کے ساتھ‬ ‫منسلکہ اور جوائنٹ‬
‫ہولڈرز کے لئے مفید ثابت ہوگا۔ کمپنی نے ‪31‬دسمبر‬ ‫حاصل شدہ فنانسنگ سہولتوں کی ادائیگیوں کے ضمن‬ ‫وینچرز میں منافع ‪/‬‬
‫‪2015‬کے ا ٓخری سات ماہ کی مدت میں زیڈ اے ا ٓر‬ ‫میں فنانس الگت میں کمی بھی شامل ہے۔ مستقبل پر‬ ‫ )‪ (215‬‬ ‫ ‪233‬‬ ‫(خسارے) کا شیئر‬
‫‪272‬ملین کی خالص سیلز ا ٓمدنی کے ساتھ زیڈ اے ا ٓر‬ ‫نگاہ رکھتے ہوئے کمپنی ا ٓپریٹنگ الگت پر موثر کنٹرول‪،‬‬ ‫ ‪ 2,444‬‬ ‫ ‪2,387‬‬ ‫سرمایہ کار ا ٓمدنی‬
‫‪14‬ملین کا قبل از ٹیکس منافع حاصل کیا۔‬ ‫پروڈکٹس میں توسیع اور نرخوں کی راشنالئزیشن کے‬ ‫ ‪ 2,540‬‬ ‫ ‪3,397‬‬ ‫منافع بعد از ٹیکس‬
‫ذریعے بہترین ا ٓپریٹنگ نتائج کے حصول پر توجہ مرکوز‬
‫پیکیجزکنسٹرکشن(پرائیویٹ)لمیٹڈ‬ ‫کرے گی۔‬ ‫سال ‪2015‬کے دوران گروپ نے ‪22,060‬ملین روپے کی‬
‫اپنے اثاثہ جات اور ا ٓمدنی کی ہمہ جہت حکمت‬ ‫خالص سیلز حاصل کی برخالف اس کے گزشتہ سال کے‬
‫عملی کے حصے کے طور پر کمپنی نے الہور میں اپنی‬ ‫دوران ‪18,727‬ملین روپے کی خالص سیلز رہی تھی‬
‫بلھے شاہ پیکیجنگ (پرائیویٹ) لمیٹڈ‬
‫اراضی پر مکمل طور پر ملکیتی ذیلی ادارے پیکیجز‬ ‫جس سے ‪18‬فیصد اضافہ ظاہر ہوتا ہے۔‬
‫اعلی‬ ‫بلھے شاہ پیکیجنگ (پرائیویٹ) لمیٹڈ ایک پرائیویٹ‬
‫کنسٹرکشن (پرائیویٹ) لمیٹڈ کے ذریعے ایک ٰ‬
‫معیار کے ریٹیل مال کا ا ٓغاز کیا جو زیر تکمیل ہے۔‬ ‫لمیٹڈ کمپنی ہے۔ یہ بنیادی طور پر پیپر اور پیپر بورڈ‬ ‫گروپ نے ‪2015‬کے دوران ا ٓپریشنز سے ‪2,602‬ملین‬
‫پروڈکٹس کی تیاری اور ان کی منتقلی میں مصروف‬ ‫روپے کا منافع حاصل کیا جبکہ ‪2014‬کے دوران یہ‬
‫مال کی تعمیر بین االقوامی ریٹیل کنسلٹینٹس سے‬ ‫عمل ہے۔ ادارے نے اپنا تجارتی ا ٓپریشنز اپریل‬ ‫منافع ‪1,468‬ملین روپے تھا اور اس طرح ‪1,134‬ملین‬
‫حاصل شدہ مشاورت پر مبنی ہے۔ جگہ کو کرایہ‬ ‫‪2013‬میں پیکیجز لمیٹڈ سے پیپر اور پیپر بورڈ اور‬ ‫روپے یعنی ‪77‬فیصد کا اضافہ ہوا۔‬
‫داروں کی ا ٓمیزش کے ساتھ لیز پر دیا جارہا ہے تاکہ‬ ‫کوروگیٹڈ کے کاروباروں کےٹرانسفر کے تحت شروع‬
‫مارکیٹ کے وسیع تر سیکشن کی توجہ حاصل کی‬ ‫کیا تھا۔ کمپنی نے سال مختتمہ ‪31‬دسمبر ‪2015‬کے‬ ‫گروپ کے اداروں کی ا ٓپریشنل کارکردگی کا ایک مختصر‬
‫جاسکے جس میں نمایاں ترین اینکر کرایہ دار‪ ،‬سینماز‪،‬‬ ‫دوران ‪15,784‬ملین روپے کی سیلز حاصل کی۔ اس کے‬ ‫جائزہ درج ذیل کے مطابق ہے‪:‬‬
‫فوڈ کورٹس‪ ،‬بین االقوامی برانڈ کی حامل دکانیں‪ ،‬لوکل‬ ‫مقابلے میں ‪2014‬کے دوران یہ ‪16,572‬ملین روپے رہا‬
‫برانڈز اور ریٹیلرز بھی شامل ہیں۔ یہ مال ممکنہ طور‬ ‫تھا۔ کمپنی نے سال ‪2015‬کے دوران ‪126‬ملین روپے کا‬ ‫ڈی آئی سی پاکستان لمیٹڈ‬
‫پر ‪2016‬میں ا ٓپریشنل ہوجائے گا۔‬ ‫قبل از ٹیکس خسارہ ریکارڈ کیا جبکہ ‪2014‬میں سیلز‬
‫میں کمی کے ضمن میں ابتدائی طور پر ‪13‬ملین روپے‬ ‫ڈی ا ٓئی سی پاکستان لمیٹڈ پیکیجز لمیٹڈ کی ایک نان‪-‬‬
‫کا خسارہ ہوا تھا۔ یہ بنیادی طور پر رائٹنگ‪ /‬پرنٹنگ پیپر‬ ‫لسٹڈ پبلک لمیٹڈ ذیلی کمپنی ہے۔ یہ بنیادی طور پر‬
‫صنعتی انکس )‪ (inks‬کی مینوفیکچرنگ ‪ ،‬پراسیسنگ‬
‫اور فروخت میں مصروف عمل ہے۔ کمپنی نے سال‬
‫‪2015‬کے دوران ‪3,443‬ملین روپے کی مجموعی‬
‫سیلز کا ہدف حاصل کیا جبکہ گزشتہ سال یہ سیلز‬
‫)سید حیدر علی(‬ ‫)توفیق حبیب چنائے(‬ ‫‪3,188‬ملین روپے تھی جس سے ‪8‬فیصد بہتری ظاہر‬
‫چیف ایگزیکٹو اور منیجنگ ڈائریکٹر‬ ‫چیئرمین‬ ‫ہوتی ہے۔ کمپنی نے سال ‪2015‬کے دوران ‪486‬ملین‬
‫کراچی‪ ،‬فروری ‪2016 ،25‬‬ ‫کراچی‪ ،‬فروری ‪2016 ،25‬‬ ‫روپے کا قبل از ٹیکس منافع حاصل کیا۔ برخالف اس‬
‫کے ‪2014‬میں ‪353‬ملین روپے کا منافع حاصل کیا‬
‫‪126‬‬
AUDITORS’ REPORT TO THE MEMBERS
We have audited the annexed included for such companies, is In our opinion the consolidated
consolidated financial statements based solely on the report of such financial statements present
comprising consolidated balance other auditors. These financial fairly the financial position
sheet of Packages Limited statements are the responsibility of Packages Limited and its
(the holding Company) and its of the holding Company’s subsidiary companies (the Group)
subsidiary companies (the Group) management. Our responsibility as at December 31, 2015 and the
as at December 31, 2015 and is to express an opinion on these results of their operations for the
the related consolidated profit financial statements based on our year then ended.
and loss account, consolidated audit.
statement of comprehensive
income, consolidated statement Our audit was conducted in
of changes in equity and accordance with the International
consolidated cash flow statement Standards on Auditing and
together with the notes forming accordingly included such tests
part thereof, for the year then of accounting records and such A.F. Ferguson & Co.
ended. We have also expressed other auditing procedures as Chartered Accountants
separate opinions on the financial we considered necessary in the Lahore, March 11, 2016
statements of Packages Limited circumstances.
and its subsidiary companies Name of engagement partner:
except for Packages Lanka As stated in note 2.2.1 to the Asad Aleem Mirza
(Private) Limited, Anemone annexed consolidated financial
Holdings (Private) Limited and statements, the Group has
Flexible Packages Convertors changed its accounting policies
(Proprietary) Limited which on initial application of standards,
were audited by other firms of amendments or interpretations to
auditors, whose report has been existing standards, with which we
furnished to us and our opinion in concur.
so far as it relates to the amounts
127
CONSOLIDATED BALANCE SHEET
as at December 31, 2015
EQUITY AND LIABILITIES
CAPITAL AND RESERVES

Authorised capital
150,000,000 (2014: 150,000,000) ordinary shares of Rs. 10 each 1,500,000 1,500,000
22,000,000 (2014: 22,000,000) 10% non-voting
preference shares / convertible stock of Rs. 190 each 4,180,000 4,180,000

Issued, subscribed and paid up capital 88,379,504
(2014: 86,379,504) ordinary shares of Rs. 10 each 5 883,795 863,795
Reserves 6
41,606,293 44,759,323
Preference shares / convertible stock reserve 7 1,309,682 1,571,699
Equity portion of short term loan from shareholder
of the Parent Company 8 46,596 -
Accumulated profit 4,316,773 3,397,572
48,163,139 50,592,389
NON-CONTROLLING INTEREST 929,138 392,866
49,092,277 50,985,255
NON-CURRENT LIABILITIES

Liabilities against assets subject to finance lease 9 192,374 25,685
Deferred tax 10 693,332 437,000
Retirement benefits 11 40,425 -
Deferred liabilities 12 248,256 212,911
6,936,872 5,104,432
CURRENT LIABILITIES
Current portion of long term liabilities 13 551,640 271,370

Short term loan from shareholder of the
Parent Company - unsecured 14 478,110 -
Finances under mark up arrangements - secured 15 1,183,699 1,607,583
Trade and other payables 16 4,784,041 3,561,912
Accrued finance costs 17 367,612 526,943
Provision for tax 27,323 -
7,392,425 5,967,808
CONTINGENCIES AND COMMITMENTS 18 - -
63,421,574 62,057,495
128
ASSETS
NON-CURRENT ASSETS

Property, plant and equipment 19 5,538,426 4,186,396
Investment property 20 5,110,248 1,166,414
Intangible assets 21 150,437 43,059
Investments accounted for under equity method 22 13,620,616 13,448,877
Other long term investments 23 28,478,865 33,222,887
Long term loans and deposits 24 40,384 53,361
Retirement benefits 11 - 87,881
52,938,976 52,208,875

CURRENT ASSETS
Stores and spares 25 539,550 549,505

Stock-in-trade 26 2,715,346 2,935,722
Trade debts 27 2,874,022 2,057,352
Loans, advances, deposits, prepayments and
other receivables 28 1,369,863 1,504,559
Income tax receivable 29 2,542,123 2,341,185
10,482,598 9,848,620
63,421,574 62,057,495
The annexed notes 1 to 53 form an integral part of these consolidated financial statements.

129
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Local sales
Own manufactured 24,384,609 21,009,446
Purchased for resale 169,155 91,052
24,553,764 21,100,498
Export sales 609,968 546,807
25,163,732 21,647,305
Less: Sales tax and excise duty 3,047,509 2,876,714

Commission 55,514 43,590
3,103,023 2,920,304
Net sales 22,060,709 18,727,001

Cost of sales 31 (17,307,773) (15,682,559)
Gross profit
4,752,936 3,044,442
Administrative expenses 32 (1,135,786) (975,619)

Distribution and marketing costs 33 (895,060) (676,228)
Other operating expenses 34 (391,701) (248,588)
Other income 35 271,660 324,211
Profit from operations 2,602,049 1,468,218
Finance costs 36 (757,823) (841,120)

Investment income 37 2,387,359 2,444,434
Share of profit / (loss) of investments accounted
for under equity method - net of tax 232,923 (214,659)
Tax 38 (1,067,850) (317,266)
Attributable to:
Equity holders of the Parent Company 3,300,944 2,409,971
Non-controlling interest 95,714 129,636
3,396,658 2,539,607
Earnings per share attributable to equity holders
of the Parent Company during the year

Basic Rupees 46 37.48 28.40
Diluted Rupees 46 33.68 25.40


130
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME



Items that will not be reclassified to profit or loss

Remeasurement of retirement benefits liability / asset (136,067) 82,427
Tax effect 40,496 (28,843)
(95,571) 53,584
Items that may be reclassified subsequently to profit or loss

(Deficit) / surplus on remeasurement of available
for sale financial assets (4,744,022) 5,656,334

Exchange differences on translating
foreign subsidiaries (433,983) (29,299)

Share of other comprehensive (loss) / income of investments
accounted for under equity method - net of tax (15,131) 2,401
(5,193,136) 5,629,436
Other comprehensive (loss) / income for the year - net of tax (5,288,707) 5,683,020

Total comprehensive (loss) / income for the year
(1,892,049) 8,222,627

Attributable to:
Equity holders of the Parent Company (1,812,348) 8,099,176
Non-controlling interest (79,701) 123,451
(1,892,049) 8,222,627


131
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to equity holders of the Parent Company
Exchange Other Equity portion of
differences Preference reserves short term loan
on translation shares / relating to from shareholder Non -
Share Share of foreign Fair value General convertible associates and of the Parent Accumulated controlling Total
(Rupees in thousand) capital premium subsidiaries reserve reserve stock reserve joint venture Company profit / (loss) Total interest equity
Balance as on December 31, 2013 843,795 2,876,893 42,784 23,566,916 11,610,333 1,605,875 (29,109) - 2,309,000 42,826,487 332,354 43,158,841
Transferred to general reserve account - - - - 700,000 - - - (700,000) - - -
Final dividend for the year ended

December 31, 2013 Rs. 8.00 per share - - - - - - - - (675,036) (675,036) - (675,036)
Dividends relating to 2013 paid to non - controlling interests - - - - - - - - - - (62,939) (62,939)
of Rs. 10 each) 20,000 355,938 - - - (34,176) - - - 341,762 - 341,762
Total transactions with owners, recognised directly in equity 20,000 355,938 - - - (34,176) - - (675,036) (333,274) (62,939) (396,213)

December 31, 2014
Profit for the year - - - - - - - - 2,409,971 2,409,971 129,636 2,539,607
Remeasurement of retirement benefit asset /
liability - net of tax - - - - - - - - 53,637 53,637 (53) 53,584
Exchange difference on translation of foreign subsidiary - - (23,167) - - - - - - (23,167) (6,132) (29,299)
Other comprehensive income of investments accounted for
under equity method - - - - - - 2,401 - - 2,401 - 2,401
Surplus on remeasurement of available for sale financial assets - - - 5,656,334 - - - - - 5,656,334 - 5,656,334
Total comprehensive income for the year - - (23,167) 5,656,334 - - 2,401 - 2,463,608 8,099,176 123,451 8,222,627
Balance as on December 31, 2014 863,795 3,232,831 19,617 29,223,250 12,310,333 1,571,699 (26,708) - 3,397,572 50,592,389 392,866 50,985,255
Transferred to general reserve account - - - - 1,500,000 - - - (1,500,000) - - -

Share of other reserves of investments accounted for
under equity method - - - - - - 8,997 - - 8,997 - 8,997

Rs. 9.00 per share - - - - - - - - (786,416) (786,416) - (786,416)
Dividends relating to 2014 paid to non-controlling interests - - - - - - - - - - (95,820) (95,820)
of Rs. 10 each) 20,000 355,938 - - - (262,017) - - - 113,921 - 113,921
Non-controlling interests on acquisition of subsidiary - Flexible
Packages Convertors (Proprietary) Limited (note - 48) - - - - - - - - - - 711,793 711,793
Equity portion of short term loan from shareholder
of the Parent Company (note - 8) - - - - - - - 46,596 - 46,596 - 46,596
Total transactions with owners, recognised directly in equity 20,000 355,938 - - - (262,017) - 46,596 (786,416) (625,899) 615,973 (9,926)

December 31, 2015
Profit for the year - - - - - - - - 3,300,944 3,300,944 95,714 3,396,658
Remeasurement of retirement benefit asset /
liability - net of tax - - - - - - - - (95,327) (95,327) (244) (95,571)
Exchange differences on translation of foreign subsidiaries - - (258,812) - - - - - - (258,812) (175,171) (433,983)
Other comprehensive income of investments accounted for
under equity method - - - - - - (15,131) - - (15,131) - (15,131)
Deficit on remeasurement of available for sale financial assets - - - (4,744,022) - - - - - (4,744,022) - (4,744,022)
Total comprehensive (loss) / profit for the year - - (258,812) (4,744,022) - - (15,131) - 3,205,617 (1,812,348) (79,701) (1,892,049)
Balance as on December 31, 2015 883,795 3,588,769 (239,195) 24,479,228 13,810,333 1,309,682 (32,842) 46,596 4,316,773 48,163,139 929,138 49,092,277

132
CONSOLIDATED CASH FLOW STATEMENT

Cash flows from operating activities
Cash generated from operations 44 4,101,068 2,411,266

Finance cost paid (930,654) (847,978)
Taxes paid (944,637) (681,925)
Payments for accumulating compensated absences (23,547) (17,514)
Retirement benefits paid (15,329) (13,847)
Net cash generated from operating activities 2,186,901 850,002
Cash flows from investing activities
Fixed capital expenditure (4,294,623) (1,559,739)

Investments - net (1,150,164) -
Net decrease in long term loans and deposits 12,977 14,323
Proceeds from disposal of property, plant and equipment 102,795 114,294
Dividends received 2,453,208 2,462,191
Net cash (used in) / generated from investing activities

(2,875,807) 1,031,069

Cash flows from financing activities
Proceeds from short term loan from shareholder of Parent Company 600,000 (682,809)
Repayment of short term loan from shareholder of Parent Company (100,000) -
Proceeds from long term finances - secured 1,952,575 -
Repayment of long term finances - secured (345,392) -
Liabilities against assets subject to finance lease - net (134,445) (3,599)
Dividends paid to equity holders of Parent Company (782,731) (671,684)
Dividends paid to non-controlling interest (95,820) (62,939)
Net cash generated from / (used in) financing activities 1,094,187 (1,421,031)
Net increase in cash and cash equivalents

405,281 460,040
Cash and cash equivalents at the beginning of the year (1,147,286) (1,607,326)
Cash and cash equivalents at the end of the year 45

(742,005) (1,147,286)


133
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
1. Legal status and nature of business
Packages Limited (‘the Parent Company’) and its subsidiaries, DIC Pakistan Limited, Packages Lanka (Private)
Limited, Packages Construction (Private) Limited, Anemone Holdings Limited and Flexible Packages Convertors
(Proprietary) Limited (together, ‘the Group’) are engaged in the following businesses:

- Packaging: Representing manufacture and sale of packaging materials and tissue products.
- Inks: Representing manufacture and sale of finished and semi finished inks.
- Construction: Representing all types of construction activities and development of real estate.

The Group also holds investment in companies engaged in the manufacture and sale of paper, paperboard and
corrugated boxes, biaxially oriented polypropylene (BOPP) film and cast polypropylene (CPP) film, plastic and
companies engaged in insurance business.

The registered office of the Group is situated at 4th Floor, the Forum, Suite No. 416 - 422, G-20, Block 9,
Khayaban-e-Jami, Clifton, Karachi, Pakistan. Head office is located at Shahrah-e-Roomi, P.O. Amer Sidhu,
Lahore, Pakistan.

2. Basis of preparation
2.1 The consolidated financial statements have been prepared in accordance with the requirements of the
Companies Ordinance, 1984 (‘the Ordinance’) and the approved accounting standards as applicable in Pakistan.
Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by
the International Accounting Standards Board and Islamic Financial Accounting Standards (IFAS) issued by the
Institute of Chartered Accountants of Pakistan as are notified under the Companies Ordinance, 1984, provisions
of and directives issued under the Companies Ordinance, 1984. Wherever the requirements of the Companies
Ordinance, 1984 or directives issued by Securities and Exchange Commission of Pakistan differ with the
requirements of IFRS or IFAS, the requirements of the Companies Ordinance, 1984 or the requirements of the
said directives prevail.

2.2 Initial application of standards, amendments or an interpretation to existing standards
The following amendments to existing standards have been published that are applicable to the Group’s financial
statements covering annual periods, beginning on or after the following dates:

2.2.1 Amendments to published standards effective in current year
New and amended standards and interpretations mandatory for the first time for the financial year beginning
January 01, 2015:
Annual improvements 2012 are applicable for annual periods beginning on or after July 01, 2014. These
amendments include changes from the 2010-12 cycle of the annual improvements project, that affect 7
standards: IFRS 2, ‘Share-based payment’, IFRS 3, ‘Business Combinations’, IFRS 8, ‘Operating segments’,
IFRS 13, ‘Fair value measurement’, IAS 16, ‘Property, plant and equipment’ and IAS 38, ‘Intangible assets’,
Consequential amendments to IFRS 9, ‘Financial instruments’, IAS 37, ‘Provisions, contingent liabilities and
contingent assets’, and IAS 39, Financial instruments – Recognition and measurement’. The application of these
amendments has no material impact on the Group’s financial statements.

Annual improvements 2013 are applicable for annual periods beginning on or after July 01, 2014. The amendments
include changes from the 2011-13 cycle of the annual improvements project that affect 4 standards: IFRS 1,
‘First time adoption’, IFRS 3, ‘Business combinations’, IFRS 13, ‘Fair value measurement’ and IAS 40, ‘Investment
property’. The application of these amendments has no material impact on the Group’s financial statements.

IAS 19 (Amendments), ‘Employee benefits’ is applicable on accounting periods beginning on or after July 01,
2014. These amendments apply to contributions from employees or third parties to defined benefit plans. The
objective of the amendments is to simplify the accounting for contributions that are independent of the number
134
of years of employee service, for example, employee contributions that are calculated according to a fixed
percentage of salary. The application of these amendments has no material impact on the Group’s financial
statements.

IFRS 10, ‘Consolidated financial statements’ is applicable on accounting periods beginning on or after January
01, 2015. This standard builds on existing principles by identifying the concept of control as the determining
factor in whether an entity should be included within the consolidated financial statements. The standard
provides additional guidance to assist in determining control where this is difficult to assess. The application of
this standard has no material impact on the Group’s financial statements.

IFRS 11, ‘Joint arrangements’ is applicable on accounting periods beginning on or after January 01, 2015. IFRS
11 is a more realistic reflection of joint arrangements by focusing on the rights and obligations of the parties
to the arrangement rather than its legal form. There are two types of joint arrangements: joint operations and
joint ventures. Joint operations arise where a joint operator has rights to the assets and obligations relating to
the arrangement and therefore accounts for its share of assets, liabilities, revenue and expenses. Joint ventures
arise where the joint operator has rights to the net assets of the arrangement and therefore equity accounts for
its interest. Proportional consolidation of joint ventures is no longer allowed. The application of this standard
has no material impact on the Group’s financial statements.

IFRS 12, ‘Disclosures of interests in other entities’ is applicable on accounting periods beginning on or after
January 01, 2015. This standard includes the disclosure requirements for all forms of interests in other entities,
including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. The
application of this standard has no material impact on the Group’s financial statements.

Amendments to IFRS 10, 11 and 12 on transition guidance are applicable on accounting periods beginning on
or after January 01, 2015. These amendments also provide additional transition relief in IFRS 10, 11 and 12,
limiting the requirement to provide adjusted comparative information to only the preceding comparative period.
For disclosures related to unconsolidated structured entities, the amendments will remove the requirement to
present comparative information for periods before IFRS 12 is first applied. The application of these amendments
has no material impact on the Group’s financial statements.

Amendments to IFRS 10, 11 and IAS 27 on consolidation for investment entities. These are applicable on
accounting periods beginning on or after January 01, 2015. These amendments mean that many funds and
similar entities will be exempt from consolidating most of their subsidiaries. Instead, they will measure them at
fair value through profit or loss. The amendments give an exception to entities that meet an ‘investment entity’
definition and which display particular characteristics. Changes have also been made IFRS 12, ‘Disclosures of
interests in other entities’ to introduce disclosures that an investment entity needs to make. The application of
these amendments has no material impact on the Group’s financial statements.

IFRS 13, ‘Fair value measurement’ is applicable on accounting periods beginning on or after January 01, 2015.
This standard aims to improve consistency and reduce complexity by providing a precise definition of fair value
and a single source of fair value measurement and disclosure requirements for use across IFRS. The requirements,
which are largely aligned between IFRS and US GAAP, do not extend the use of fair value accounting but provide
guidance on how it should be applied where its use is already required or permitted by other standards within
IFRS or US GAAP. The application of this standard has no material impact on the Group’s financial statements
expect for certain additional fair value disclosures as provided in note 49.4.

2.2.2
Standards, amendments and interpretations to existing standards that are not yet effective and have not
been early adopted by the Group

The following amendments and interpretations to existing standards have been published and are mandatory
for the Group’s accounting periods beginning on or after January 01, 2016 or later periods, but the Group has
not early adopted them:

135
Annual improvements 2014 are applicable for annual periods beginning on or after January 01, 2016. The
amendments include changes from the 2012-14 cycle of the annual improvements project that affect 4 standards:
IFRS 5, ‘Non current assets held for sale and discontinued operations’ regarding methods of disposal, IFRS 7,
‘Financial instruments: Disclosures’ with consequential amendments to IFRS 1 regarding servicing contracts, IAS
19, ‘Employee benefits’ regarding discount rates and IAS 34, ‘Interim financial reporting’ regarding disclosure
of information. The Group shall apply these amendments from January 01, 2016 and does not expect to have a
material impact on its financial statements.

Amendments to IAS 16, ‘Property, plant and equipment’ and IAS 41, ‘Agriculture’, regarding bearer plants
are applicable on accounting periods beginning on or after January 01, 2016. These amendments change
the financial reporting for bearer plants, such as grape vines, rubber trees and oil palms. The IASB decided
that bearer plants should be accounted for in the same way as property, plant and equipment because their
operation is similar to that of manufacturing. Consequently, the amendments include them within the scope of
IAS 16 instead of IAS 41. The produce growing on bearer plants will remain within the scope of IAS 41. These
amendments do not have a material impact on the Group’s financial statements.

Amendments to IAS 16, ‘Property, plant and equipment’ and IAS 38, ‘Intangible assets’ are applicable on
accounting periods beginning on or after January 01, 2016. IASB has clarified that the use of revenue based
methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity
that includes the use of an asset generally reflects factors other than the consumption of the economic benefits
embodied in the asset. The IASB has also clarified that revenue is generally presumed to be an inappropriate
basis for measuring the consumption of the economic benefits embodied in an intangible asset. The Group shall
apply these amendments from January 01, 2016 and does not expect to have a material impact on its financial
statements.

IAS 27 (Amendments), ‘Separate financial statements’ are applicable on accounting periods beginning on or
after January 1, 2016. These provide entities the option to use the equity method to account for investments in
subsidiaries, joint ventures and associates in their separate financial statements. The Group shall apply these
amendments from January 01, 2016 and has not yet evaluated whether it shall change its accounting policy to
avail this option.

IFRS 9, ‘Financial instruments’ - classification and measurement is applicable on accounting periods beginning
on or after January 01, 2015. This standard on classification and measurement of financial assets and financial
liabilities will replace IAS 39, ‘Financial instruments: Recognition and measurement’. IFRS 9 has two measurement
categories: amortised cost and fair value. All equity instruments are measured at fair value. A debt instrument
is measured at amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows
represent principal and interest. For liabilities, the standard retains most of the requirements of IAS 39 . These
include amortised-cost accounting for most financial liabilities, with bifurcation of embedded derivatives. The
main change is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value
change due to an entity’s own credit risk is recorded in other comprehensive income rather than the income
statement, unless this creates an accounting mismatch. This change will mainly affect financial institutions. This
IFRS is under consideration of the relevant Committee of the Institute of Chartered Accountants of Pakistan. The
Group has yet to assess the impact of these changes on its financial statements.

IFRS 9, ‘Financial instruments’ is applicable on accounting periods beginning on or after January 01, 2018. IASB
has published the complete version of IFRS 9, ‘Financial Instruments’, which replaces the guidance in IAS 39.
This final version includes requirements on the classification and measurement of financial assets and liabilities;
it also includes an expected credit losses model that replaces the incurred loss impairment model used today.
This IFRS is under consideration of the relevant Committee of the Institute of Chartered Accountants of Pakistan.
The Group has yet to assess the impact of these changes on its financial statements.

address an inconsistency between the requirements in IFRS 10 and those in IAS 28 in dealing with the sale
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or contribution of assets between an investor and its associate or joint venture. The main consequence of
the amendments is that a full gain or loss is recognised when a transaction involves a business, whether it is
housed in a subsidiary or not. A partial gain or loss is recognised when a transaction involves assets that do not
constitute a business, even if these assets are housed in a subsidiary. The Group shall apply these amendments
from January 01, 2016 and does not expect to have a material impact on its financial statements.

clarify the application of the consolidation exception for investment entities and their subsidiaries. The Group
shall apply these amendments from January 01, 2016 and does not expect to have a material impact on its
financial statements.

IFRS 11 (Amendment), ‘Joint arrangements’ on acquisition of an interest in a joint operation is applicable on
accounting periods beginning on or after 01 January 2016. This amendment adds new guidance on how to
account for the acquisition of an interest in a joint operation that constitutes a business. The amendments
specify the appropriate accounting treatment for such acquisitions. The Group shall apply this amendment from
January 01, 2016 and does not expect to have a material impact on its financial statements.

IFRS 14, ‘Regulatory deferral accounts’ is applicable on accounting periods beginning on or after January 01,
2016. This standard permits first time adopters to continue to recognise amounts related to rate regulation in
accordance with their previous GAAP requirements when they adopt IFRS. However, to enhance comparability
with entities that already apply IFRS and do not recognise such amounts, the standard requires that the effect of
rate regulation must be presented separately from other items. The Group shall apply this standard from January
01, 2016 and does not expect to have a material impact on its financial statements.

IFRS 15, ‘Revenue from contracts with customers’ is applicable on accounting periods beginning on or after
January 01, 2017. This is a converged standard from the IASB and FASB on revenue recognition. The standard
will improve the financial reporting of revenue and improve comparability of the top line in consolidated financial
statements globally. The Group shall apply this standard from January 01, 2017 and does not expect to have a
material impact on its financial statements.

Amendments to IAS 1, ‘Presentation of consolidated financial statements’ on the disclosure initiative is applicable
on annual periods beginning on or after January 01, 2016, subject to EU endorsement. These amendments are
part of the IASB initiative to improve presentation and disclosure in financial reports. The Group has yet to assess
the impact of these amendments on its financial statements.

3. Basis of measurement
3.1 These consolidated financial statements have been prepared under the historical cost convention except for
revaluation of certain financial instruments at fair value and recognition of certain employee retirement benefits
at present value.

3.2 The Group’s significant accounting policies are stated in note 4. Not all of these significant policies require the
management to make difficult, subjective or complex judgments or estimates. The following is intended to provide
an understanding of the policies that the management considers critical because of their complexity, judgment
and estimation involved in their application and impact on these consolidated financial statements. Judgments
and estimates are continually evaluated and are based on historical experience, including expectations of future
events that are believed to be reasonable under the circumstances. These judgments involve assumptions or
estimates in respect of future events and the actual results may differ from these estimates. The areas involving
a higher degree of judgments or complexity or areas where assumptions and estimates are significant to the
consolidated financial statements are as follows:

i) Estimated useful life of property, plant and equipment - note 4.3
ii) Provision for employees’ retirement benefits - note 4.10 & 11
iii) Provision for tax - note 38
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4. Significant accounting policies
The significant accounting policies adopted in the preparation of these consolidated financial statements are set
out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

4.1 Principles of consolidation and equity accounting
a) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls
an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are
fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the
date that control ceases.

The acquisition method of accounting is used to account for business combinations by the Group (refer to note
4.7).
Intercompany transactions, balances and unrealised gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment
of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated
profit and loss account, consolidated statement of comprehensive income, consolidated statement of changes
in equity and consolidated balance sheet respectively.

b) Associates
Associates are all entities over which the Group has significant influence but not control or joint control. This is
generally the case where the Group holds between 20% and 50% of the voting rights. Investments in associates
are accounted for using the equity method of accounting (refer to note 4.1 (d)), after initially being recognised
at cost.

c) Joint arrangements
Under IFRS 11, ‘Joint Arrangements’, investments in joint arrangements are classified as either joint operations
or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather
than the legal structure of the joint arrangement. The Group has investments in joint ventures.

Joint ventures
Interests in joint ventures are accounted for using the equity method (refer to note 4.1 (d)), after initially being
recognised at cost in the consolidated balance sheet.

d) Equity method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter
to recognise the Group’s share of the post-acquisition profits or losses of the investee in the consolidated
profit and loss account, and the Group’s share of movements in other comprehensive income of the investee in
consolidated other comprehensive income. Dividends received or receivable from associates and joint ventures
are recognised as a reduction in the carrying amount of the investment. When the Group’s share of losses in
an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured
long term receivables, the Group does not recognise further losses, unless it has incurred obligations or made
payments on behalf of the other entity.
Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the
extent of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees
have been changed where necessary to ensure consistency with the policies adopted by the Group.
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The Group determines at each reporting date whether there is any objective evidence that the investment in
the associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference
between the recoverable amount of the associate and its carrying value and recognises the amount adjacent to
share of profit / (loss) of associates in the consolidated profit and loss account.

e) Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions
with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying
amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any
difference between the amount of the adjustment to non-controlling interests and any consideration paid or
received is recognised in a separate reserve within equity attributable to owners of the Group.

When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint
control or significant influence, any retained interest in the entity is remeasured to its fair value with the change
in carrying amount recognised in the consolidated profit and loss account. This fair value becomes the initial
carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint
venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in
respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities.
This may mean that amounts previously recognised in other comprehensive income are reclassified to the
consolidated profit and loss account.

If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is
retained, only a proportionate share of the amounts previously recognised in other comprehensive income are
reclassified to the consolidated profit and loss account where appropriate.

4.2 Tax
Current
Provision of current tax is based on the taxable income for the year determined in accordance with the prevailing
law for taxation of income. The charge for current tax is calculated using prevailing tax rates or tax rates
expected to apply to the profit for the year, if enacted. The charge for current tax also includes adjustments,
where considered necessary, to provision for tax made in previous years arising from assessments framed
during the year for such years.

Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of all temporary differences
arising from differences between the carrying amount of assets and liabilities in the consolidated financial
statements and the corresponding tax bases used in the computation of the taxable profit. Deferred tax
liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised
to the extent that it is probable that taxable profits shall be available against which the deductible temporary
differences, unused tax losses and tax credits can be utilised.

Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse
based on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is
charged or credited in the consolidated profit and loss account, except in the case of items credited or charged
to equity in which case it is included in equity.

4.3 Property, plant and equipment
Property, plant and equipment, except freehold land, are stated at cost less accumulated depreciation and any
identified impairment loss. Freehold land is stated at cost less any identified impairment loss. Cost in relation to
certain plant and machinery signifies historical cost, gains and losses transferred from equity on qualifying cash
flow hedges as referred to in note 4.17 and borrowing costs as referred to in note 4.18.
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Asset subject to finance lease are initially recognised at the lower of present value of minimum lease payments
under the lease agreements and the fair value of the assets. Subsequently these assets are stated at cost less
accumulated depreciation and any identified impairment loss.

Depreciation on all property, plant and equipment is charged to profit on the straight-line method so as to write
off the depreciable amount of an asset over its estimated useful life at the following annual rates:

- Buildings 2.5% to 20%
- Plant and machinery 6.25% to 33.33%
- Other equipments 10% to 33.33%
- Furniture and fixtures 10% to 20%
- Vehicles 20%

depreciation is significant. The Group’s estimate of the residual value of its property, plant and equipment as at
December 31, 2015 has not required any adjustment as its impact is considered insignificant.

Depreciation on additions to property, plant and equipment is charged from the month in which an asset is
acquired or capitalised while no depreciation is charged for the month in which the asset is disposed off.

The Group assesses at each balance sheet date whether there is any indication that property, plant and
equipment may be impaired. If such indication exists, the carrying amounts of such assets are reviewed to assess
whether they are recorded in excess of their recoverable amount. Where carrying amounts exceed the respective
recoverable amount, assets are written down to their recoverable amounts and the resulting impairment loss is
recognised in consolidated profit and loss account. The recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use. Where an impairment loss is recognised, the depreciation charge is adjusted
in the future periods to allocate the asset’s revised carrying amount over its estimated useful life.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item shall flow to the Group and the
cost of the item can be measured reliably. All other repair and maintenance costs are charged to consolidated
profit and loss account during the period in which they are incurred.


Capital work-in-progress is stated at cost less any identified impairment loss.

4.4 Investment property
Property not held for own use or for sale in the ordinary course of business is classified as investment property.
The investment property of the Group comprises land and buildings and is valued using the cost method
i.e. at cost less any accumulated depreciation and any identified impairment loss. Land and building under
construction is classified as investment property under development and carried at cost less any identified
impairment losses.

Depreciation on buildings is charged to profit on the straight line method so as to write off the depreciable amount
of building over its estimated useful life at the rates ranging from 3.33% to 6.67% per annum. Depreciation on
additions to investment property is charged from the month in which a property is acquired or capitalised while
no depreciation is charged for the month in which the property is disposed off.

depreciation is significant. The Group’s estimate of the residual value of its investment property as at December
31, 2015 has not required any adjustment as its impact is considered insignificant.

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The Group assesses at each balance sheet date whether there is any indication that investment property may
amount, assets are written down to their recoverable amount and the resulting impairment loss is recognised in
consolidated profit and loss account. The recoverable amount is the higher of an asset’s fair value less costs to
sell and value in use. Where an impairment loss is recognised, the depreciation charge is adjusted in the future


4.5 Intangible assets
Expenditure incurred to acquire computer software and SAP Enterprise Resource Planning (ERP) system are
capitalised as intangible assets and stated at cost less accumulated amortisation and any identified impairment
loss. Intangible assets are amortised using the straight line method over a period of three to five years.

Development costs are recognised as intangible assets when the following criteria are met:

- it is technically feasible to complete the intangible asset so that it will be available for use;
- management intends to complete the intangible asset and use or sell it;
- there is an ability to use or sell the intangible asset;
- it can be demonstrated how the intangible asset will generate probable future economic benefits;
- adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset are available; and
- the expenditure attributable to the intangible asset during its development can be reliably measured.

Other development expenditures that do not meet these criteria are recognised as an expense as incurred.
Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

Amortisation on additions to intangible assets is charged from the month in which an asset is acquired or
capitalised while no amortisation is charged for the month in which the asset is disposed off.

The Group assesses at each balance sheet date whether there is any indication that intangible assets may be
impaired. If such indication exists, the carrying amounts of such assets are reviewed to assess whether they
amount, assets are written down to their recoverable amounts and the resulting impairment loss is recognised in
consolidated profit and loss account. The recoverable amount is the higher of an asset’s fair value less costs to
sell and value in use. Where an impairment loss is recognised, the amortisation charge is adjusted in the future

4.6 Leases
(1) The Group is the lessee:
Finance leases
Leases where the Group has substantially all the risks and rewards of ownership are classified as finance leases.
The related rental obligations, net of finance charges, are included in liabilities against assets subject to finance
lease. The liabilities are classified as current and long term depending upon the timing of the payment.

Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the
balance outstanding. The interest element of the rental is charged to profit over the lease term.

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Operating leases
Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified
as operating leases. Payments made under operating leases (net of any incentives received from the lessor)
are charged to profit on a straight-line basis over the lease / Ijarah term unless another systematic basis is
representative of the time pattern of the Group’s benefit.

(2) The Group is the lessor:
Operating leases
Assets leased out under operating leases are included in investment property as referred to in note 18. They
are depreciated over their expected useful lives on a basis consistent with similar owned property, plant and
equipment. Rental income (net of any incentives given to lessees) is recognised on a straight-line basis over the
lease term.

4.7 Business combinations
The acquisition method of accounting is used to account for all business combinations, regardless of whether
equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary
comprises the following:

- fair values of the assets transferred;
- liabilities incurred to the former owners of the acquired business;
- equity interests issued by the Group;
- fair value of any asset or liability resulting from a contingent consideration arrangement; and
- fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are,
with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognises any
non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at
the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets.

Acquisition-related costs are expensed as incurred.
The excess of the:
- consideration transferred,
- amount of any non-controlling interest in the acquired entity, and
- acquisition-date fair value of any previous equity interest in the acquired entity

over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than
the fair value of the net identifiable assets of the subsidiary acquired, the difference is recognised directly in the
consolidated profit and loss account as a bargain purchase.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted
to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing
rate, being the rate at which a similar borrowing could be obtained from an independent financier under
comparable terms and conditions.

Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial
liability are subsequently remeasured to fair value with changes in fair value recognised in the consolidated
profit and loss account .

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously
held equity interest in the acquire is remeasured to fair value at the acquisition date. Any gains or losses arising
from such remeasurement are recognised in the consolidated profit and loss account .

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4.8 Goodwill
Goodwill on acquisitions of subsidiaries is included in ‘intangible assets’. Goodwill on acquisitions of associates
and joint ventures is included in ‘investments in associates’ and ‘investments in joint ventures’ respectively
and is tested for impairment as part of the overall balance. Separately recognised goodwill is tested annually
for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not
reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the
entity sold.

4.9 Investments
Investments intended to be held for less than twelve months from the balance sheet date or to be sold to raise
operating capital, are included in current assets, all other investments are classified as non-current. Management
determines the appropriate classification of its investments at the time of the purchase and re-evaluates such
designation on a regular basis.

Investments in equity instruments of associates and joint ventures
Investments in equity instruments of associates and joint ventures are accounted for using the equity method of
accounting as referred to in note 4.1 (d).

Other investments
Other investments made by the Group are classified for the purpose of measurement into the following
categories:

Held to maturity
Investments with fixed maturity that the management has the intent and ability to hold to maturity are classified
as held to maturity and are initially measured at cost and at subsequent reporting dates measured at amortised
cost using the effective yield method.

Available for sale
The financial assets including investments in associated undertakings where the Group does not have significant
influence that are intended to be held for an indefinite period of time or may be sold in response to the need for
liquidity are classified as available for sale.

Investments classified as available for sale are initially measured at cost, being the fair value of consideration
given. At subsequent reporting dates, these investments are remeasured at fair value. Changes in fair value of
‘available for sale’ investments are recognised in other comprehensive income until derecognised or impaired,
when the accumulated fair value adjustments, recognised in other comprehensive income are transferred to the
consolidated profit and loss account.

All purchases and sales of investments are recognised on the trade date which is the date that the Group
commits to purchase or sell the investment. Cost of purchase includes transaction cost.

At each balance sheet date, the Group reviews the carrying amounts of the investments to assess whether there
is any indication that such investments have suffered an impairment loss. If any such indication exists, the
recoverable amount is estimated in order to determine the extent of the impairment loss, if any. Impairment
losses are recognised as expense in the consolidated profit and loss account. In respect of ‘available for
sale’ financial assets, cumulative impairment loss less any impairment loss on that financial asset previously
recognised in consolidated profit and loss account, is removed from equity and recognised in the consolidated
profit and loss account. Impairment losses recognised in the consolidated profit and loss account on equity
instruments are not reversed through the consolidated profit and loss account.
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4.10 Employee retirement benefits
The main features of the schemes operated by the Group for its employees are as follows:

4.10.1 Defined benefit plans
(a) Gratuity plan
There is an approved funded defined benefit gratuity plan for employees of the Parent Company. Monthly
contributions are made to this fund on the basis of actuarial recommendations at the rate of 4.5 percent per
annum of basic salaries. The latest actuarial valuation for the gratuity scheme was carried out as at December
31, 2015. The actual return on plan assets during the year was Rs. 29.8 million. The actual return on plan assets
represent the difference between the fair value of plan assets at the beginning of the year and end of the year
adjustments for contributions made by the Group as reduced by benefits paid during the year.

The future contribution rates of these plans include allowances for deficit and surplus. Projected unit credit
method, using the following significant assumptions, is used for valuation of this scheme:

Expected rate of increase in salary level 8.0 percent per annum;
Expected rate of return 9.0 percent per annum
izafa certificates and term deposit with banks. Return on government bonds and debt is at fixed rates, however,
due to increased volatility of share prices in recent months, there is no clear indication of return on equity
shares, therefore, it has been assumed that the yield on equity shares would match the return on debt.

The Parent Company is expected to contribute Rs. 16.926 million to the gratuity fund in the next financial
year.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are
charged or credited to equity in other comprehensive income in the period in which they arise. Past service costs
are recognized immediately in income.

(b) Pension plan
All the management and executive staff participates in the pension plan of the Parent Company. On December
26, 2012, the Board of Trustees of the pension plan of the Parent Company decided to convert the Defined
Benefit Plan to Defined Contribution Plan for all its active employees with effect from January 01, 2013 with no
impact on the pensioners appearing on the pensioners’ list as of that date. The proposed scheme was approved
for implementation by the Commissioner Inland Revenue on February 22, 2013 and employees consent to the
proposed scheme was sought and obtained.

Consequently, the pension plan / fund currently operates two different plans for its employees:
- Defined contribution plan for all active employees; and
- Defined benefit plan for pensioners who have retired before December 31, 2012
In respect of the defined contribution plan, the Parent Company contributes 20% of members’ monthly salary to
the scheme; whereas, an employee may or may not opt to contribute 6% of his monthly salary to the scheme.

The obligation in respect of the defined benefit plan is determined by the Fund’s Actuary at each year end. Any
funding gap identified by the Fund’s Actuary is paid by the Group from time to time. The last actuarial valuation
was carried out as at December 31, 2015.

Expected rate of increase in pension level 4.0 percent per annum;
Expected rate of return 9.0 percent per annum
144
term finance certificates, izafa certificates and term deposit with banks. Return on government bonds and debt
is at fixed rates, however, due to increased volatility of share prices in recent months, there is no clear indication
of return on equity shares, therefore, it has been assumed that the yield on equity shares would match the return
on debt.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions for the
defined benefit plan are charged or credited to equity in other comprehensive income in the period in which they
arise. Past service costs are recognized immediately in income.

Pension plan is a multi-employer plan formed by the Group in collaboration with Tri Pack Films Limited. The
Parent Company reports its proportionate share of the plan’s commitments, managed assets and costs, after
deducting share of Tri Pack Films Limited, in accordance with guidance provided by IAS 19 - Employee Benefits,
regarding defined benefit plans

(c) Accumulating compensated absences
The Group provides for accumulating compensated absences when the employees render services that increase
their entitlement to future compensated absences. The executives and workers are entitled to earned annual
leaves and medical leaves on the basis of their service with the Group. The annual leaves can be encashed at the
time the employee leaves the Group on the basis of gross salary while no encashment is available for medical
leaves.

The Group uses the valuation performed by an independent actuary as the present value of its accumulating
compensated absences.

Projected unit credit method, using the following significant assumptions, has been used for valuation of
accumulating compensated absences:
Expected rate of increase in salary level 8.0 percent per annum; and
Expected mortality rate SLIC (2001-2005) mortality table with one year setback
4.10.2 Defined contribution plan

There is an approved contributory provident fund for all employees. Equal monthly contributions at the rate of
10.0 percent per annum of basic salaries are made by the Group and the employees to the fund. The nature of
contributory pension fund has been explained in note 4.10.1 (b) above.

Retirement benefits are payable to staff on completion of prescribed qualifying period of service under these
schemes.

4.11 Stores and spares
Stores and spares are valued at moving average cost, while items considered obsolete are carried at nil value.
Items in transit are valued at cost comprising invoice value plus other charges paid thereon.

Provision is made in the consolidated financial statements for obsolete and slow moving stores and spares based
on management estimate.

4.12 Stock-in-trade
Stock of raw materials, except for those in transit, work-in-process and finished goods are valued principally at
the lower of cost and net realisable value. Cost of raw materials is determined using the weighted average cost
method. Cost of work-in-process and finished goods comprises direct production costs such as raw materials,
consumables and labor as well as production overheads such as employee wages, depreciation, maintenance,
etc. The production overheads are measured based on a standard cost method, which is reviewed regularly to
ensure relevant measures of utilisation, production lead time etc.
145
Materials in transit are stated at cost comprising invoice value plus other charges paid thereon.
Stock held for resale is stated at the lower of cost comprising invoice value plus other charges paid thereon and
net realisable value.

If the expected sales price less completion costs and costs to execute sales (net realisable value) is lower than
the carrying amount, a write-down is recognised for the amount by which the carrying amount exceeds its net
realisable value. Provision is made in the consolidated financial statements for obsolete and slow moving stock
in trade based on management estimate.

4.13 Financial instruments
Financial assets and financial liabilities are recognised at the time when the Group becomes a party to the
contractual provisions of the instrument and derecognised when the Group loses control of contractual rights
that comprise the financial assets and in the case of financial liabilities when the obligation specified in the
contract is discharged, cancelled or expired. Any gain or loss on derecognition of financial assets and financial
liabilities is included in the consolidated profit and loss account for the year.

Financial instruments carried on the balance sheet include loans, investments, trade and other debts, cash and
bank balances, borrowings, trade and other payables, accrued expenses and unclaimed dividends. All financial
assets and liabilities are initially measured at cost, which is the fair value of consideration given and received
respectively. These financial assets and liabilities are subsequently measured at fair value or cost as the case
may be. The particular recognition methods adopted are disclosed in the individual policy statements associated
with each item.

4.14 Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and the net amount is reported in the consolidated financial statements
only when there is a legally enforceable right to set off the recognised amount and the Group intends either to
settle on a net basis or to realise the assets and to settle the liabilities simultaneously.

4.15 Trade debts
Trade debts are amounts due from customers for merchandise sold or services performed in the ordinary course
of business. If collection is expected in one year or less (or in the normal operating cycle of the business, if
longer), they are classified as current assets. If not, they are presented as non-current assets.

Trade debts are recognized initially at fair value and subsequently measured at amortised cost using the effective
interest method, less an estimate made for doubtful debts based on a review of all outstanding amounts at the
year end. Bad debts are written off when identified.

4.16 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. For the purpose of cash flow statement, cash
and cash equivalents comprise cash in hand, demand deposits, other short term highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in
value and finances under mark up arrangements. In the balance sheet, finances under mark up arrangements
are included in current liabilities.

4.17 Non-current assets / disposal group held-for-sale
Non-current assets are classified as assets held-for-sale when their carrying amount is to be recovered
principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of
carrying amount and fair value less cost to sell.

4.18 Borrowings
Borrowings are recognised initially at fair value (proceeds received), net of transaction costs incurred. Borrowings
are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs)
and the redemption value is recognised in the income statement over the period of the borrowings using the
effective interest method.
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Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that
it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-
down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn
down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility
to which it relates.

Finance costs are accounted for on an accrual basis and are shown as accrued finance cost to the extent of the
amount remaining unpaid.

4.19 Trade and other payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year
or less (or in the normal operating cycle of the business, if longer). If not, they are presented as non-current
liabilities.

Liabilities for creditors and other costs payable are initially recognised at cost which is the fair value of the
consideration to be paid in future for goods and/ or services, whether or not billed to the Group and subsequently
measured at amortised cost using the effective interest method.

4.20 Derivative financial instruments
These are initially recorded at cost on the date a derivative contract is entered into and are remeasured to fair
value at subsequent reporting dates. The method of recognising the resulting gain or loss depends on whether
the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Group
designates certain derivatives as cash flow hedges.

The Group documents at the inception of the transaction the relationship between the hedging instruments and
hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions.
The Group also documents its assessment, both at hedge inception and on an on-going basis, of whether the
derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flow of hedged
items.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges are recognised in statement of other comprehensive income. The gain or loss relating to the ineffective
portion is recognised immediately in the consolidated profit and loss account.

Amounts accumulated in equity are recognised in consolidated profit and loss account in the periods when the
hedged item shall effect profit or loss. However, when the forecast hedged transaction results in the recognition
of a non-financial asset or liability, the gains and losses previously deferred in equity are transferred from equity
and included in the initial measurement of the cost of the asset or liability.

4.21 Revenue recognition
Revenue is recognised on dispatch of goods or on the performance of services.

Return on deposits is accrued on a time proportion basis by reference to the principal outstanding and the
applicable rate of return.

Dividend income and entitlement of bonus shares are recognised when right to receive such dividend and bonus
shares is established.

4.22 Foreign currency transactions and translation
Foreign currency transactions are translated into Pak Rupees using the exchange rates prevailing at the dates of
the transactions. All monetary assets and liabilities in foreign currencies are translated into Pak Rupees at the
rates of exchange prevailing at the balance sheet date. Foreign exchange gains and losses on translation are
recognised in the consolidated profit and loss account. All non-monetary items are translated into Pak Rupees
147
at exchange rates prevailing on the date of transaction or on the date when fair values are determined. Foreign
exchange gains and losses are recognised in the consolidated profit and loss account except in case of items
recognised in other comprehensive income or equity in which case it is included in other comprehensive income
or equity respectively.

The results and financial position of all the group entities (none of which has the currency of a hyper-inflationary
economy) that have a functional currency different from the presentation currency are translated into the
presentation currency as follows:

(a) assets and liabilities for each balance sheet item presented are translated at the closing rate at the date of
that balance sheet;

(b) income and expenses for each item of consolidated profit and loss account are translated at average
exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case income and expenses are translated at the rate on the
dates of the transactions); and

(c) all resulting exchange differences are recognised in other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and
liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognised in
other comprehensive income.

The consolidated financial statements are presented in Pak Rupees, which is the Group’s functional and
presentation currency.

4.23 Borrowing costs
General and specific borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready
for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing / finance costs are recognised in consolidated profit and loss account in the period in which
they are incurred.

4.24 Dividend
Dividend distribution to the Group’s shareholders is recognised as a liability in the period in which the dividends
are approved.

4.25 Compound financial instruments
Compound financial instruments issued by the Group represent preference shares / convertible stock that can
be converted into ordinary shares or can be settled in cash.

The liability component of a compound financial instrument is recognised initially at the fair value of a similar
liability that does not have an equity conversion option. The equity component is recognised initially at the
difference between the fair value of the compound financial instrument as a whole and the fair value of the liability
component. Any directly attributable transaction costs are allocated to the liability and equity components in
proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of a compound financial instrument is measured at
amortised cost using the effective interest method. The equity component of a compound financial instrument
is not remeasured subsequent to initial recognition.
148
4.26 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board of Directors of the Parent
Company.

4.27 Provisions
Provisions for environmental restoration, restructuring costs and legal claims are recognised when:

(i) the Group has a present legal or constructive obligation as a result of past events;
(ii) it is probable that an outflow of resources shall be required to settle the obligation; and
(iii) the amount has been reliably estimated

Restructuring provisions include lease termination penalties and employee termination payments and such
other costs that are necessarily entailed by the restructuring and not associated with on-going activities of the
Group. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow shall be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood
of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation
using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific
to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
5. Issued, subscribed and paid up capital
2015 2014 2015 2014

(Number of shares) (Rupees in thousand)

beginning of the year
2,000,000 - shares / convertible stock 20,000 -
86,379,504 84,379,504 863,795 843,795
Issuance of shares upon conversion of

2,000,000 2,000,000 preference shares / convertible stock - note 5.1 20,000 20,000

end of the year
4,000,000 2,000,000 shares / convertible stock 40,000 20,000

88,379,504 86,379,504 883,795 863,795
5.1 Under the terms of redemption / conversion of preference shares / convertible stock mentioned in note 7.2, the
Parent Company, during the year converted 2,000,000 (2014: 2,000,000) preference shares / convertible stock
of Rs. 190 each held by International Finance Corporation, Washington D.C, USA (‘IFC’) into 2,000,000 (2014:
2,000,000) fully paid ordinary shares of Rs. 10 each.
149
5.2 21,522,101 (2014: 21,133,101) ordinary shares of the Parent Company are held by IGI Insurance Limited, an
associate.
6. Reserves
Movement in and composition of consolidated reserves is as follows:
Capital
Share premium
Conversion of preference shares / convertible stock 6.1 355,938 355,938
6.2 3,588,769 3,232,831
Exchange difference on translation of foreign subsidiaries
At the beginning of the year 19,617 42,784

Exchange difference for the year (258,812) (23,167)
(239,195) 19,617

Fair value reserve

Fair value (loss) / gain during the year (4,744,022) 5,656,334
6.3 24,479,228 29,223,250
27,828,802 32,475,698
Revenue
General reserve

Transferred from consolidated profit and loss account 1,500,000 700,000
13,810,333 12,310,333

Other reserves relating to associates and joint ventures
At the beginning of the year (26,708) (29,109)

Share of other reserves of investments accounted for under equity method 8,997 -
Other comprehensive (loss) / income during the year (15,131) 2,401
(32,842) (26,708)
13,777,491 12,283,625
41,606,293 44,759,323

6.1 This represents share premium at the rate of Rs. 177.97 (2014: Rs. 177.97) per share in respect of the transaction
referred to in note 5.1 above.

6.2 This reserve can be utilised by the Group only for the purposes specified in section 83(2) of the Companies
Ordinance, 1984.

6.3 As referred to in note 4.9, this represents the unrealised gain on remeasurement of investments at fair value and
is not available for distribution. This shall be transferred to consolidated profit and loss account on derecognition
of investments.
150
7. Long term finances
These are composed of:

Local currency loans - secured
Term finance loan 7.1.1 100,000 300,000
Long term finance facility 7.1.2 2,000,000 2,000,000
Term loan 7.1.3 188,991 266,695
Term finance facility 7.1.4 985,950 -
3,274,941 2,566,695
Foreign currency loan - secured 7.2 921,360 -
4,196,301 2,566,695
Preference shares / convertible stock - unsecured 7.3 2,014,895 2,128,815
6,211,196 4,695,510
Current portion shown under current liabilities 13
Term finance loan (100,000) (200,000)
Long term finance facility (285,714) -
Term loan (62,997) (66,674)
(448,711) (266,674)
5,762,485 4,428,836

7.1 Local currency loans - secured
7.1.1 Term finance loan
During the current year, the Group has made a repayment of Rs. 200 million towards the term finance loan
availed from Bank Al-Habib Limited. This loan is secured by a pari passu charge of Rs. 1,273 million (2014: Rs.
1,273 million) over present and future fixed assets of the Group located at Lahore excluding land and buildings.
It carries mark up at the rate of six months Karachi Inter Bank Offer Rate (‘KIBOR’) plus 0.2 percent per annum
to six months KIBOR plus 0.65 percent per annum (2014: KIBOR plus 0.65 percent per annum). The balance is
repayable on May 19, 2016. The effective mark up charged during the year ranges from 7.20 percent to 10.82
percent per annum (2014: 9.81 percent to 10.82 percent per annum).

7.1.2 Long term finance facility
This loan has been obtained from Meezan Bank Limited under the Islamic mode of finance as a Musharika. It is
secured by a pari passu charge over all present and future fixed assets of the Group located at Lahore and Kasur
excluding land and building located at Lahore amounting to Rs. 2,500 million. It carries mark up at six months
KIBOR plus 0.25 percent per annum (2014: six months KIBOR plus 0.65 percent per annum) and is payable
in 7 equal semi-annual installments starting on December 28, 2016 and ending on December 28, 2019. The
effective mark up charged during the year ranges from 7.26 percent to 9.89 percent per annum (2014: 10.81
percent to 10.82 percent per annum).
7.1.3 Term loan
Term loan has been obtained from MCB Bank Limited Sri Lanka and is repayable over seven years including two
years grace period.

7.1.4 Term finance facility
During the year, the Group availed term finance facility of Rs. 4,500 million inclusive of Rs. 1,861 million for
letter of credit from MCB Bank Limited. It carries markup at annual rate of 6 months KIBOR plus 0.14% and
0.40% during first and last three and half years respectively during the tenure of the term finance facility.
151
The tenure is seven years and is repayable after a grace period of three and half years in seven semi-annual
installments commencing from September 30, 2019. It is secured against first exclusive equitable mortgage
charge of Rs. 7,333.334 million on land of the Parent Company, measuring 119 kanals 15 marlas and 62.25
square feets in aggregate, situated at Lahore having book value of Rs. 6.149 million together with all present and
future buildings constructed thereon, and movable fixed assets including but not limited to plant, machinery,
equipment, fixtures and other installations.

7.2 Foreign currency loan - secured
During the current year, the Group obtained a loan from Habib Bank Limited, Offshore Banking Unit, Bahrain
(‘HBL Bahrain’) of USD 9.5 million to finance the acquisition of business as referred to in note 48. This facility
is provided against a guarantee in the form of a Standby Letter of Credit (‘SBLC’) issued by Habib Bank Limited
Pakistan (‘HBL Pakistan’) in favor of HBL Bahrain as referred to in note 18.1. SBLC is secured against pledge of
Nestle Pakistan Limited shares owned by the Group as referred to in note 23.2. It carries markup at the rate
of LIBOR plus 5.25 percent per annum and the balance USD 8.8 million is payable in 10 equal semi-annual
installments starting from November 2017 and ending on May 2022. The effective markup charged during the
year ranges from 5.90 percent per annum to 5.95 percent per annum.

7.3 Preference shares / convertible stock - unsecured
During the year 2009, the Group issued 10 percent local currency non-voting cumulative preference shares /
convertible stock at the rate of Rs. 190 per share amounting to USD 50 million equivalent to PKR 4,120.5 million
under “Subscription Agreement” dated March 25, 2009 with IFC.

Terms of redemption / conversion
Each holder of preference shares / convertible stock shall have a right to settle at any time, at the option of
holder, either in the form of fixed number of ordinary shares, one ordinary share for one preference share
/ convertible stock, or cash. The Group may, in its discretion, refuse to purchase the preference shares /
convertible stock offered to it for purchase in cash. In case of refusal by the Group, preference shareholders shall
have the right to either retain the preference shares / convertible stock or to convert them into ordinary shares.
The preference shares / convertible stock can be held till perpetuity if preference shareholders do not opt for
the conversion or cash settlement.

Rate of return
The preference share / convertible stock holders have a preferred right of return at the rate of 10 percent per
annum on a non-cumulative basis till the date of settlement of preference shares / convertible stock either in
cash or ordinary shares.

Preference shares / convertible stock are recognised in the balance sheet as follows:


Face value of preference shares / convertible stock
[17,686,842 (2014: 19,686,842) shares of Rs. 190 each] 3,360,500 3,740,500
Transaction costs (35,923) (39,986)
3,324,577 3,700,514
Equity component - classified under capital and reserves 7.3.1 (1,309,682) (1,571,699)
Liability component - classified under long term finances 2,014,895 2,128,815

Accrued return on preference shares / convertible stock
classified under accrued finance cost 336,050 355,047
152
7.3.1 Movement in equity component - classified under

capital and reserves
Opening balance 1,571,699 1,605,875
Transfer from long term finances to capital and
reserves [1,000,000 shares (2014: 3,000,000 shares)] 113,921 341,762
Conversion into ordinary share capital and share
premium [2,000,000 shares (2014: 2,000,000 shares)] (375,938) (375,938)
Closing balance 1,309,682 1,571,699

The fair value of the liability component of the preference shares / convertible stock is calculated by discounting
cash flows at a rate of approximately 16.50 percent till perpetuity which represents the rate of similar instrument
with no associated equity component. The residual amount, representing the value of the equity conversion
component, is included in shareholders equity as preference shares / convertible stock reserve.

During the year, IFC exercised its right to convert 1,000,000 (2014: 3,000,000) preference shares / convertible
stock of Rs. 190 into 1,000,000 (2014: 3,000,000) ordinary shares of Rs. 10 each. Consequently, the Group
converted 2,000,000 (2014: 2,000,000) preference shares / convertible stock during the year of which 1,000,000
(2014: Nil) preference shares / convertible stock pertain to the right exercised by IFC in the previous year.
Accordingly, the liability portion pertaining to 1,000,000 (2014: 3,000,000) preference shares / convertible
stock converted into ordinary shares has been transferred to capital and reserves.
8. Equity portion of short term loan from shareholder
Interest free loan aggregating to Rs. 600 million (2014: Nil) from the shareholder of the Parent Company, as
referred to in note 14 has been discounted at a rate of 10.46% (2014: Nil), considered to be the rate for a similar
instrument, to determine the fair value of the loan. The resulting gain on initial recognition has been classified
directly in equity as a capital contribution of the shareholder of the Parent Company accompanying a loan at
market terms as referred to in note 14.


9. Liabilities against assets subject to finance lease
Present value of minimum lease payments 295,303 30,381

Current maturity shown under current liabilities 13 (102,929) (4,696)
192,374 25,685
Interest rate used as discounting factor ranges from 6.96 per cent to 10.72 per cent per annum (2014: 9.99 per
cent to 10.72 per cent per annum). Taxes, repairs, replacements and insurance costs are borne by the lessee.

Liabilities against finance lease include amounts secured against the following:

(Rupees in thousand)
Plant and machinery 642,324
Motor vehicles 29,523
153
The amount of the future payment of the lease as shown in the balance sheet and the period in which these
payments will become due are as follows:

Minimum Future Present value of lease
lease finance liability
(Rupees in thousand) payments charge 2015 2014

Not later than one year 135,089 32,160 102,929 4,696
Later than one year and not later
than five years 223,342 30,968 192,374 25,685
358,431 63,128 295,303 30,381

10. Deferred tax
The liability for deferred tax comprises temporary

differences relating to:
Accelerated tax depreciation 550,540 589,169
Asset acquisition 187,354 -
Investments in associates and joint ventures 201,000 136,000
Preference shares / convertible stock transaction cost - liability portion 6,882 8,022
Unused tax losses - (199,491)
Effect of qualifying payment (1,239) (10,044)
Income received in advance (1,878) -
Alternate corporate tax available for carry forward (33,787) -
Minimum tax available for carry forward 10.1 (122,079) -
Provision for accumulating compensated absences (70,337) (70,138)
Provision for doubtful receivables (7,768) (13,343)
Provision for slow moving items (3,244) (1,749)
Provision for unfunded defined benefit plan (1,990) (1,426)
Straight lining of operating leases (10,122) -
693,332 437,000

10.1 The Group has not adjusted the net deferred tax liability against aggregate tax credits of Rs. 436.93 million
(2014: Rs. 811.446 million) available to the Group under section 113 of the Income Tax Ordinance, 2001
(‘Ordinance’) in view of the decision by the Divisional Bench of Sindh High Court dated May 7, 2013 in case
of another Group, in respect of carry forward of minimum tax by the Group. Through the aforesaid decision,
the Sindh High Court has interpreted section 113(2)(c) of the Ordinance that the benefit of carry forward of
minimum tax paid by a Group is not available if otherwise no tax was payable by the Group due to taxable
loss. Tax credits under section 113 of the Ordinance amounting to Rs. 203.917 million, Rs. 110.934 million
and Rs. 122.079 million are set to lapse by the end of years ending on December 31, 2016, 2017 and 2020
respectively.
154
11. Retirement benefits
Classified under non-current assets

Pension fund - 58,252
Gratuity fund - 29,629
- 87,881
Classified under non-current liabilities

Pension fund 24,744 -
Gratuity fund 15,681 -
40,425 -


The amounts recognised in the consolidated
balance sheet are as follows:

Fair value of plan assets 627,009 700,115 362,566 339,502
Present value of defined benefit obligation (651,753) (641,863) (378,247) (309,873)
(Liability) / asset as at December 31 (24,744) 58,252 (15,681) 29,629

Net asset / (liability) as at January 1 58,252 (578) 29,629 6,540
Income / (charge) to consolidated profit
and loss account 6,117 (72) (13,685) (14,282)
(Loss) / gain recorded in consolidated OCI (89,113) 58,902 (46,954) 23,921
Contribution by the Group - - 15,329 13,450
Net (liability) / asset as at December 31 (24,744) 58,252 (15,681) 29,629
The movement in the present value of defined

benefit obligation is as follows:

at January 1 641,863 568,285 309,873 275,115
Service cost - - 18,005 16,153

Interest cost 63,837 66,808 30,860 31,339
Benefits paid (67,785) (67,639) (31,006) (45,424)
Loss from change in demographic
assumptions - 3,144 - -
Loss from change in financial assumptions 43,903 62,212 - -
Experience adjustments (30,065) 9,053 51,438 36,069

at December 31 651,753 641,863 378,247 309,873
155

The movement in fair value of plan assets is
as follows:

Fair value as at January 1 700,115 567,707 339,502 281,655
Expected return on plan assets 69,954 66,736 35,180 33,209
Group contributions - - 15,329 13,450
Benefits paid (67,785) (67,639) (31,006) (45,424)
Experience (loss) / gain (75,275) 133,311 4,484 59,991
Fair value as at December 31 627,009 700,115 362,566 339,502

The amounts recognised in the consolidated
profit and loss account are as follows:

Current service cost - - 18,005 16,153
Interest cost for the year 63,837 66,808 30,860 31,339
Expected return on plan assets (69,954) (66,736) (35,180) (33,209)
Net (income) / expense included in salaries,

wages and amenities (6,117) 72 13,685 14,283

Plan assets are comprised as follows:
Debt 291,528 250,081 144,192 14,802
Equity 333,161 393,815 216,271 220,812
Cash 2,320 56,219 2,103 103,888
627,009 700,115 362,566 339,502

The present value of defined benefit obligation, the fair value of plan assets and the deficit or surplus of
pension fund is as follows:

As at December 31
benefit obligation 651,753 641,863 568,285 582,031 1,092,581
(Deficit) / surplus (24,744) 58,252 (578) (276,458) (406,831)

on obligation -5% 2% 1% 13% 11%
on plan assets -11% 24% 2% 11% -10%
156
Fair value of plan assets include ordinary shares of the Parent Company, whose fair value as at December 31,
2015 is Rs. 384.214 million (2014: Rs. 447.696 million).
The present value of defined benefit obligation, the fair value of plan assets and the surplus of gratuity fund is
as follows:

As at December 31
benefit obligation 378,247 309,873 275,115 371,372 314,074
(Deficit) / surplus (15,681) 29,629 6,540 (30,350) 3,094
on obligation 6% 13% 9% 14% -1%
on plan assets 1% 21% 14% 9% -5%

Fair value of plan assets include ordinary shares of the Parent Company, whose fair value as at December 31,
2015 is Rs. 60.827 million (2014: Rs. 70.877 million).

2015
(Rupees in thousand) Pension Gratuity
Year end sensitivity analysis on defined benefit obligation:
Discount rate + 100 bps 608,531 350,030

Discount rate - 100 bps 701,114 410,723
Indexation + 100 bps 708,393 410,963
Indexation - 100 bps 601,768 349,325

12. Deferred liabilities
Accumulating compensated absences 12.1 234,990 201,030

Staff gratuity 12.2 13,266 11,881
248,256 212,911
12.1 Accumulating compensated absences
This represents provision made to cover the obligation

for accumulating compensated absences.

258,629 218,544

12.2 Staff gratuity
This represents staff gratuity of employees of Packages Lanka (Private) Limited and is unfunded.
157
13. Current portion of long term liabilities
Current portion of long term finances - secured 7 448,711 266,674

Current portion of liabilities against assets subject
to finance lease 9 102,929 4,696
551,640 271,370
14. Short term loan from shareholder of the

Parent Company - unsecured
Loan is recognised in the consolidated balance sheet as follows:
Gross proceeds of the loan 600,000 -

Equity portion of loan at initial recognition (46,596) -
Fair value of the loan at initial recognition 553,404 -

Repayment during the year (100,000) -
Accrued interest during the year 24,706 -
Closing balance 478,110 -

14.1 This loan has been obtained from Syed Babar Ali, shareholder of the Parent Company and is interest free. The
loan is repayable on June 10, 2016 and has been carried at amortised cost using a market interest rate of 10.46%
for a similar instrument.

15. Finances under mark up arrangements - secured
Running finances - secured 15.1 783,699 1,017,583

Bills discounted - secured 15.2 - -
Short term finances - secured 15.3 400,000 590,000
1,183,699 1,607,583

15.1 Running finances - secured
Short term running finances available from a consortium of commercial banks under mark up arrangements
amount to Rs. 10,825 million (2014: Rs. 9,285 million). The rates of mark-up range from Re 0.1780 to Re
0.2980 (2014: Re 0.2638 to Re 0.4658) per Rs. 1,000 per diem or part thereof on the balances outstanding. In
the event the Group fails to pay the balances on the expiry of the quarter, year or earlier demand, mark up is to
be computed at the rates ranging from Re 0.2136 to Re 0.3636 (2014: Re 0.3165 to Re 0.3823) per Rs. 1,000
per diem or part thereof on the balances unpaid. The aggregate running finances are secured by hypothecation
of stores, spares, stock-in-trade and trade debts.

During the year, the Group availed term finance facility of Rs. 4,500 million inclusive of Rs. 1,861 million for
letter of credit from MCB Bank Limited. It carries mark up at annual rate of 6 months KIBOR plus 0.14% and
0.40% during first and last three and half years respectively during the tenure of the term finance facility.
The tenure is seven years and is repayable after a grace period of three and half years in seven semi-annual
installments commencing from September 30, 2019. It is secured against first exclusive equitable mortgage
charge of Rs. 7,333.334 million on land of the Parent Company, measuring 119 kanals 15 marlas and 62.25
square feet in aggregate, situated at Lahore having book value of Rs. 6.149 million together with all present and
future buildings constructed thereon, and movable fixed assets including but not limited to plant, machinery,
equipment, fixtures and other installations.
158
15.2 Bills discounted - secured
Facilities for discounting of export / inland bills of Rs. 531 million (2014: Rs. 531 million) are available to the
Group as a sub-limit of the running finance facilities referred to in note 15.1. Mark up is fixed as per mutual
agreement at the time of transaction. The outstanding balance of bills discounted is secured, in addition to
the securities referred to in note 15.1, on the specific bills discounted. The facility has not been availed in the
current year.

15.3 Short term finances - secured
Facilities for obtaining short term finances of Rs. 8,065 million (2014: Rs. 7,235 million) are available to the
Group as a sub-limit of the running finance facilities referred to in note 15.1. The rates of mark up range from
Re 0.1698 to Re 0.2715 (2014: Re 0.2690 to Re 0.2858) per Rs. 1,000 per diem or part thereof on the balances
outstanding.
15.4 Letters of credit and bank guarantees
Of the aggregate facility of Rs. 7,389 million (2014: Rs. 7,438 million) for opening letters of credit and Rs. 849
million (2014: Rs. 1,049 million) for guarantees, the amount utilised at December 31, 2015 was Rs. 508.171
million (2014: Rs. 208.337 million) and Rs. 268 million (2014: Rs. 154.840 million) respectively. Of the facility
for guarantees, Rs. 794 million (2014: Rs. 1,294 million) is secured by second hypothecation charge over stores,
spares, stock-in-trade and trade debts.


16. Trade and other payables
Trade creditors 16.1 2,132,321 1,222,640

Accrued liabilities 16.2 688,234 580,803
Bills payable 1,022,815 1,245,493
Retention money payable 105,265 2,489
Sales tax payable 49,965 11,071
Advances from customers 201,695 136,794
Payable to employees’ retirement benefit funds 16.3 14,590 13,237
Deposits - interest free repayable on demand 7,446 7,226
TFCs payable 1,387 1,387
Unclaimed dividends 20,975 17,290
Workers’ profit participation fund 16.4 202,337 148,122
Operating lease rentals 36,149 -
Others 16.6 114,377 71,561
4,784,041 3,561,912
159
16.1 Trade creditors include amount due to related parties as follows:
Joint venture
Associates
IGI Insurance Limited 4,648 1,147

IGI Life Insurance Limited 1,940 -
Other related parties
DIC Asia Pacific Pte Limited 19,703 9,399

DIC China Company Limited 1,450 -
DIC Corporation Japan 365 370
DIC Fine Chemicals Pvt Limited 186 186
DIC Graphics (Thailand) Co. Limited 274 -
DIC India Limited 3,366 -
DIC Malaysia SDN. BHD - 659
319,504 177,105

16.2 Accrued liabilities include amounts in respect
of related parties as follows:

Joint venture
Bulleh Shah Packaging (Private) Limited - 764

Associate
IGI Insurance Limited 175 -

Other related parties
DIC Asia Pacific Pte Limited 36,748 33,253
36,923 34,017

16.3 Payable to employees’ retirement benefit funds
Employees’ provident fund 16.3.1 7,347 6,808

Employees’ gratuity fund 1,293 1,149
Management staff pension fund 5,950 5,280
14,590 13,237
160
16.3.1 Employeesʼ provident fund
(i) Size of the fund 2,152,893 2,311,341

(ii) Cost of investments made 776,987 715,803
(iii) Fair value of investments 16.3.2 2,125,249 2,297,324
(iv) Percentage of investments made 98.72% 99.39%

2015 2014
Rupees in % age of size Rupees in % age of size
thousand of the Fund thousand of the Fund
16.3.2 Fair value of investments
Break up of investments
Equity shares of listed companies 1,480,216 68.75% 1,719,020 74.37%

Mutual funds 206,866 9.61% 159,346 6.89%
Izafa certificates 160,217 7.44% 148,011 6.40%
Pakistan investment bonds 214,565 9.97% 213,169 9.22%
Term finance certificates 20,155 0.94% 28,524 1.23%
Term deposit receipts with banks 43,230 2.01% - 0.00%
Treasury bills - 0.00% 29,254 1.27%
2,125,249 98.72% 2,297,324 99.39%

16.3.3 The investments of the employee’s provident fund trust have been made in accordance with the provisions of
section 227 of the Ordinance and the Rules formulated for this purpose.

16.4 Workers’ profit participation fund

Refund claimed - 641
378,459 273,258
16.5 Workers’ welfare fund

Prior year adjustment 390 -
191,515 108,774

16.6 Others include amount due to related parties Rs. 3.268 million (2014: Rs. 1.233 million).
161
17. Accrued finance cost
Accrued mark up / return on:

Long term local currency loans - secured 20,500 148,704
Long term foreign currency loans - secured - -
Preference shares / convertible stock - unsecured 336,050 355,047
367,612 526,943

18. Contingencies and commitments
18.1 Contingencies
(i) Claims against the Group not acknowledged as debts Rs. 20.077 million (2014: Rs. 18.062 million).
(ii) Guarantee issued in favor of Excise and Taxation Officer amounting to Rs. 0.792 million (2014: Rs. 1.485
million).
(iii) Post dated cheques not provided in the consolidated financial statements furnished by the Group in favor
of the Collector of Customs against custom levies aggregated to Rs. 72.248 million (2014: Rs. 100.337
million) in respect of goods imported.
(iv) Standby letter of credit issued by HBL Pakistan in favor of HBL Bahrain on behalf of the Group amounting to
USD 11.770 million (equivalent to PKR 1,232.781 million) [2014: Nil] as referred to in note 23.2.

18.2 Commitments
(i) Letters of credit and contracts for capital expenditure Rs. 2,875.358 million (2014: Rs. 962.267 million).
(ii) Letters of credit and contracts for other than for capital expenditure Rs. 237.869 million (2014: Rs. 227.594
million).
(iii) The amount of future payments under operating leases and the period in which these payments will become
due are as follows:


Later than five years 212,751 -
577,410 78,327
There are no commitments with related parties.

19. Property, plant and equipment
Owned assets 19.1 4,643,490 3,901,357

Assets subject to finance lease 19.2 657,575 30,830
Capital work in progress 19.3 237,361 254,209
5,538,426 4,186,396
162
19.1 Owned assets

2015
Exchange
Exchange Transfer Accumulated adjustment Depreciation Transfer Accumulated Book value
Cost as at adjustment in / (out) Cost as at depreciation as opening charge / in / (out) depreciation as as at
December on opening Additions / (note 19.2) December at December accumulated (deletions) (note 19.2) at December December
(Rupees in thousand) 31, 2014 cost (deletions) (note 20) 31, 2015 31, 2014 depreciation for the year (note 20) 31, 2015 31, 2015
Freehold land 158,262 (7,671) 26,641 - 171,158 - - - - - 171,158

- (6,074) - -
Buildings on freehold land 581,587 (4,528) 3,216 - 580,275 169,218 (336) 22,943 - 191,825 388,450
- - - -
Buildings on leasehold land 245,417 23,439 - 268,856 123,764 - 12,474 - 136,238 132,618
- - -
Plant and machinery 8,091,202 (31,825) 1,220,154 - 8,805,381 5,427,606 (19,992) 481,041 - 5,418,612 3,386,769
(474,150) - (470,043) -
Other equipments (computers, lab
equipments and other office equipments) 996,639 (8,884) 112,903 - 1,076,258 646,681 (5,797) 130,497 - 747,558 328,700
(24,400) - (23,823) -
Furniture and fixtures 48,604 (705) 21,657 - 69,171 35,516 (401) 4,365 - 39,095 30,076
(385) - (385) -
Vehicles 302,982 (219) 78,188 2,168 325,496 120,551 (208) 30,406 390 119,777 205,719
(57,623) - (31,362) -
10,424,693 (53,832) 1,486,198 2,168 11,296,595 6,523,336 (26,734) 681,726 390 6,653,105 4,643,490
- (556,558) (6,074) - (525,613) -
2014
Exchange
Exchange Transfer Accumulated adjustment Depreciation Transfer Accumulated Book value
Cost as at adjustment in / (out) Cost as at depreciation as opening charge / in / (out) depreciation as as at
December on opening Additions / (note 19.2) December at December accumulated (deletions) (note 19.2) at December December
(Rupees in thousand) 31, 2013 cost (deletions) (note 20) 31, 2014 31, 2013 depreciation for the year (note 20) 31, 2014 31, 2014
Freehold land 195,836 (6,733) 19,731 - 158,262 - - - - - 158,262

- (50,572) - -
Buildings on freehold land 564,407 (3,935) 21,267 - 581,587 146,428 (98) 22,960 - 169,218 412,369
(152) - (72) -
Buildings on leasehold land 245,417 - - - 245,417 112,703 11,061 - 123,764 121,653
- - -
Plant and machinery 8,071,995 (27,900) 546,398 - 8,091,202 5,511,822 (16,093) 427,861 - 5,427,606 2,663,596
(499,291) - (495,984) -
Other equipments (computers, lab
equipments and other office equipments) 915,187 (7,790) 102,880 - 996,639 556,890 (4,706) 104,257 - 646,681 349,958
(13,638) - (9,760) -
Furniture and fixtures 43,568 (578) 6,887 - 48,604 34,144 (288) 2,903 - 35,516 13,088
(1,273) - (1,243) -
Vehicles 277,286 (207) 74,336 - 302,982 118,960 (200) 28,342 - 120,551 182,431
(48,433) - (26,551) -
10,313,696 (47,143) 771,499 - 10,424,693 6,480,947 (21,385) 597,384 - 6,523,336 3,901,357

- (562,787) (50,572) - (533,610) -
19.1.1 Owned assets include assets amounting to Rs. 15.385 million (2014: Rs. 20.479 million) of the Group which are
not in operation.
19.1.2 The cost of fully depreciated assets which are still in use as at December 31, 2015 is Rs. 3,399.412 million
(2014: Rs. 3,126.697 million).
19.1.3 The depreciation charge for the year has been allocated as follows:

Cost of sales 31 628,895 557,906
Distribution and marketing costs 33 8,738 7,884
681,726 597,384
163
19.1.4 Disposal of owned assets

Detail of owned assets disposed off during the year is as follows:


Outsiders
Boss Links 14,492 11,231 3,261 2,222 Negotiation
M/s Fazal Brothers 27 18 9 5 - do -
Muhammad Ameen 5,296 5,186 110 1,295 - do -
Other Equipments Outsiders - related party
IGI Insurance Limited 105 15 90 75 Claim Settlement
Outsider
Bismillah Traders 2,490 2,257 233 98 Negotiation
Vehicles Employees
Ahmed Ramzan 1,100 572 528 763 Group Policy
Ammad Asif 1,275 536 739 906 - do -
Asma Shahzad 750 405 345 471 - do -
Athar Riaz 1,498 419 1,079 1,166 - do -
Ather Ayub Khan 1,797 1,348 449 481 Negotiation
Fahad Ali 490 368 122 218 Group Policy
Farhan Munir 700 182 518 511 - do -
Ghayyur Abbas 700 203 497 512 - do -
Hammad Ahmed Butt 944 349 595 582 - do -
Hassan Asif 1,640 1,046 594 1,197 - do -
Imran Iqbal 1,548 341 1,207 1,218 - do -
Khalid Aziz 493 364 129 221 - do -
Major Fazal Ahmed 1,778 76 1,702 1,760 Negotiation
Maryam Nisar 813 325 488 562 Group Policy
Mashkoor Hussain 1,498 390 1,108 1,173 - do -
Moiz Ahmed 741 282 459 456 - do -
Mudassir Anjum 1,111 455 656 779 - do -
Mudassir Shafique 1,232 924 308 717 - do -
Muhammad Akram 1,288 869 419 571 - do -
Muhammad Amir Baig 1,770 142 1,628 1,771 - do -
Muhammad Ashiq 630 449 181 333 - do -
Muhammad Awais Jawaid 859 634 225 398 - do -
Muhammad Latif 800 600 200 475 - do -
Muhammad Siddique 1,232 924 308 709 - do -
Muhammad Usman Akram 810 300 510 516 - do -
Musa Naseer 878 648 230 414 - do -
Musarrat Mumtaz 389 291 98 102 - do -
Omar Javed 673 135 538 487 - do -
Rehan Yacob 1,354 1,016 338 890 - do -
Sagheer Hussain 505 366 139 230 - do -
Sahil Zaheer 1,426 1,034 392 859 - do -
Saifullah Zaheer 695 56 639 614 - do -
Shahid Latif 460 345 115 174 - do -
Shamim Ahmed Khan 1,000 688 312 511 Negotiation
Tanseer Asghar 511 370 141 235 - do -
Tanveer Ahmed Awan 515 380 135 237 - do -
Umer Mehmood 650 234 416 420 - do -
Usman Anwar 1,250 645 605 884 - do -
Usman Munir 750 367 383 462 - do -
Zafar Mehmood 1,400 364 1,036 1,149 - do -
Zubair Ahmed 467 350 117 178 - do -
Outsiders - related party
Tripack Films Limited 2,512 678 1,834 1,834 - do -
Syed Aslam Mehdi 1,969 1,304 665 664 - do -
Carried forward 69,202 41,326 27,876 33,381
164

Brought forward 69,202 41,326 27,876 33,381

Outsiders
Argosy Enterprises 1,279 959 320 1,102 Negotiation
Asim Mumtaz 1,347 1,010 337 830 - do -
Bismillah Traders 525 395 130 252 - do -
Israel Khan 803 602 201 645 - do -
Muhammad Sajid 678 88 590 562 - do -
Qadeer Associates & Motors 1,169 876 293 990 - do -
Riaz Motors 673 114 559 513 - do -
Written off 3,971 3,971 - - Group Policy
556,558 525,613 30,945 102,795

Buildings on freehold land Outsider
Muhammad Younis and Company 152 72 80 27 Negotiation

Bulleh Shah Packaging (Private) Limited 6,019 5,173 846 1,000 Negotiation

Outsiders
Muhammad Younis & Company 4,537 2,215 2,322 805 Negotiation

Bismillah Traders 469 331 138 98 -do-
456 456 - - Written off

Other Equipments Employee
Syed Aslam Mehdi 2,348 240 2,108 - Group Policy

Outsiders
Malik Muhammad Younis 1,983 529 1,454 84 Negotiation
Computer Mall 798 798 - 11 - do -
Mughal Electronics 16 15 1 2 - do -
Bismillah Traders 1,274 1,270 4 13 - do -
2,281 2,270 11 - Written off

Furniture and fixture Outsiders
Bismillah Traders 401 401 - 65 Negotiation

Mughal Electronics 165 147 18 20 - do -
Israel Khan 17 17 - 4 - do -
691 678 13 - Written off

Vehicles Employees
Ali Faraz 741 192 549 537 Group Policy

Asad Ur Rehman 950 152 798 755 - do -
Athar Rashid Butt 1,687 1,118 569 590 - do -
Atif Raza 750 98 652 645 - do -
Attia Jamal 1,035 290 745 832 - do -
Faisal Mehmood 672 54 618 572 - do -
Hamid Jameel 746 560 186 422 - do -
Carried forward 28,188 17,076 11,112 6,482
165
Brought forward 28,188 17,076 11,112 6,482
Haroon Naseer 1,232 909 323 718 - do -

Ishtiaq Ahmad 937 356 581 681 - do -
Kamran Bashir 1,232 909 323 717 - do -
Mian Abid Nisar Lodhi 783 196 587 498 - do -
Mohayyundin Ahmad 700 473 227 399 - do -
Muhammad Ahmad 1,110 425 685 870 - do -
Muhammad Naveed 730 547 183 585 Negotiation
Muhammad Anwar 516 387 129 233 Group Policy
Muhammad Bilal Tariq 555 183 372 352 - do -
Muhammad Zubair 960 684 276 496 - do -
Musab Mukhtar 538 404 134 257 - do -
Nasir Mehmood 628 455 173 325 - do -
Raza Sanaullah 1,924 250 1,674 1,761 - do -
Sajjad Iftikhar 1,690 389 1,301 1,256 - do -
Salman Saleem 620 465 155 335 - do -
Shakir Zia 1,430 858 572 941 - do -
Syed Asim Shamim 1,386 762 624 906 Group Policy
Syed Shaukat Hussain 487 359 128 227 - do -
Talal Bin Najam 620 186 434 397 - do -
Waseem Ahmad 1,017 142 875 899 - do -
Muhammad Salman 697 340 357 426 - do -
Muhammad Naeem Chohan 510 383 127 229 - do -
Sohail Afzal 501 376 125 222 - do -
Muhammad Abbas 459 344 115 173 - do -

Outsiders
Amir Saleem 387 290 97 318 Negotiation

Aurangzeb 2,500 1,744 756 4,732 - do -
Bank Al Habib 4,680 328 4,352 4,584 Sale and lease
back
Khair Agencies 657 85 572 575 Negotiation
Bilal Ahmed 1,657 1,243 414 1,070 - do -
Masood Ahmed 800 540 260 825 - do -
Muhammad Rashid Shakoor 874 656 218 720 - do -
Nazim Hussain 730 547 183 642 - do -
Sarwar & Company (Pvt) Limited 5,795 5,723 72 4,274 - do -
Shafi Karim 822 462 360 528 - do -

value less than Rs 50,000 494,435 494,134 301 75,641 Negotiation
562,787 533,610 29,177 114,294
166
19.2 Assets subject to finance lease

2015
Accumulated Deprecation Accumulated Book value

Vehicles 35,030 43,430 (2,168) 74,717 4,200 8,214 (390) 12,024 62,693
(1,575)
Plant and equipment - 624,548 - 624,548 - 29,666 - 29,666 594,882
35,030 666,403 (2,168) 699,265 4,200 37,880 (390) 41,690 657,575

(1,575) -
2014
Accumulated Deprecation Accumulated Book value
Vehicles 28,897 6,133 - 35,030 548 3,652 - 4,200 30,830
28,897 6,133 - 35,030 548 3,652 - 4,200 30,830
19.2.1 Depreciation charge for the year has been allocated as follows:

Cost of sales 31 34,355 1,039
Distribution and marketing costs 33 261 65
37,880 3,652

19.3 Capital work-in-progress
Civil works 11,229 41,084

Plant and machinery [including in transit Rs. 49.39
million (2014: Nil)] 202,281 207,041
Advance for procurement of land 17,593 195
Advances to suppliers 6,258 5,889
237,361 254,209
20. Investment property
Developed 20.1 136,012 117,056

Under development 20.2 4,974,236 1,049,358
5,110,248 1,166,414
167
20.1 Investment property - developed
2015

Land 109,323 - 6,074 115,397 - - - - 115,397
Buildings on leasehold land 909 15,834 - 16,743 320 748 - 1,068 15,675
145,087 15,834 6,074 166,995 28,031 2,952 - 30,983 136,012
2014

Land 58,751 - 50,572 109,323 - - - - 109,323
Buildings on leasehold land 909 - - 909 290 30 - 320 589
94,515 - 50,572 145,087 25,725 2,306 - 28,031 117,056

20.1.1 Depreciation charge for the year has been allocated to administrative expenses.

20.1.2 Fair value of the investment property, based on the valuation carried out by an independent valuer, as at
December 31, 2015 is Rs. 849.277 million (2014: Rs. 694.700 million). The valuation is considered to be level
2 in the fair value hierarchy due to significant observable inputs used in the valuation. The different levels have
been defined in note 49.4.
Valuation techniques used to derive level 2 fair values
Level 2 fair value of investment property has been derived using a sales comparison approach. Sale prices of
comparable land and buildings in close proximity are adjusted for differences in key attributes such as location
and size of the property. The most significant input into this valuation approach is price per square foot.

20.2 Investment property - under development
This represents the under-construction “Packages Mall”

Real Estate project:
Civil works 3,163,003 532,191
Equipments 612,746 -
Unallocated expenditure 20.2.1 811,045 330,046
Advance to suppliers 36,745 21,606
Advances against services 350,697 165,515
4,974,236 1,049,358
168

20.2.1 This includes following expenses capitalised to date:
Salaries, wages and benefits 20.2.1.1 145,606 33,513

Consultancy fee 465,888 186,023
Legal and professional charges 98,498 94,541
Insurance 13,014 2,239
Communications 1,930 460
Borrowing costs 20.2.1.2 35,330 -
Miscellaneous expenses 6,570 2,103
811,045 330,046

20.2.1.1 Salaries, wages and benefits include Rs. 1.374 million (2014: Rs. 0.558 million), Rs. 0.612 million (2014: Rs.
0.106 million) and Rs. 5.454 million (2014: Rs. 0.471 million) respectively, in respect of contribution by the
Group towards provident fund, gratuity fund and pension fund and Nil (2014: Rs. 0.388 million) in respect of
accumulating compensated absences.

20.2.1.2 This represents borrowing costs in respect of long term finance as referred to in note 7.1.4 and that on interest
from loan from shareholder of the Parent Company as referred to in note 8 net off related temporary investment
income.

20.2.2 In the absence of current prices in an active market, the fair value is determined by considering the aggregate
of the estimated cash flows expected to be received from renting out the property less the estimated costs to
complete and the estimated operating expenses.

The Group has determined the fair value as on December 31, 2015 by internally generated valuation model
instead of involving independent professionally qualified valuer. The valuation is considered to be level 3 in the
fair value hierarchy due to unobservable inputs used in the valuation. The major assumptions used in valuation
model and valuation result at balance sheet date are as follows:

2015 2014
Gross buildable area (sq ft) 1,185,369 1,185,369

Estimated costs to complete (Rs. in million) 11,653 9,687
Gross rentable area (sq ft) 555,370 555,370
Rent rates assumed per sq ft (Rs.) 75-450 350-425
Inflation in rent and operating costs 7.50% 7.50%
Discount rate (%) 14% 14%
Fair value (Rs. in million) 9,392 3,611
169
Computer
software and
(Rupees in thousand) Note Goodwill ERP system Total
21. Intangible assets

Year ended December 31, 2015
Cost
As at January 1, 2015 - 207,558 207,558
Additions 21.2 169,745 992 170,737
Deletions - (210) (210)
Exchange differences (44,109) - (44,109)
As at December 31, 2015 125,636 208,340 333,976

As at January 1, 2015 - (164,499) (164,499)
Amortisation for the year 21.1 - (19,250) (19,250)
Deletions - 210 210
As at December 31, 2015 - (183,539) (183,539)
125,636 24,801 150,437
Year ended December 31, 2014
Cost
As at January 1, 2014 - 187,346 187,346
Additions - 21,091 21,091
Deletions - (879) (879)
As at December 31, 2014 - 207,558 207,558

As at January 1, 2014 - (148,263) (148,263)
Amortisation for the year 21.1 - (17,115) (17,115)
Deletions - 879 879
As at December 31, 2014 - 164,499 164,499
- 43,059 43,059
21.1 The amortisation charge for the year has been allocated as follows:

Cost of sales 31 9,733 7,329
19,250 17,115
21.2 Impairment test for Goodwill
For the purpose of annual impairment testing, goodwill is allocated to the operating segments expected to
benefit from the synergies of the business combination in which the goodwill arises, as follow:

Flexible Packages Convertors (Proprietary) Limited, South African project

The recoverable amount of the South African project is determined on the discounted cash-flow basis.

170
These calculations use cash flow projections based on financial budgets approved by management covering a
five year period. The present value of the expected cash flows of the above segments is determined by applying
a suitable internal rate of return.

As the goodwill arose as a result of an acquisition of business during the current year, an impairment test is
performed annually.
The key assumptions used for the discounted cash flow calculation are as follows:
Internal rate of return (IRR) 27%

Discount rate (pre-tax) 15%
Growth rate 10%
22. Investments accounted for using the equity method
22.1 Amounts recognised in consolidated balance sheet

Investments in associates 22.4 3,773,974 3,531,225
Investment in joint ventures 22.5 9,846,642 9,917,652
13,620,616 13,448,877

22.2 Amounts recognised in consolidated profit and loss account
Investments in associates 22.4 304,931 (120,420)
Investments in joint ventures 22.5 (72,008) (94,239)
232,923 (214,659)

22.3 Amounts recognised in consolidated other
comprehensive income
Investments in associates 22.4 (6,069) 6,404
Investments in joint ventures 22.5 (9,062) (4,003)
(15,131) 2,401

22.4 Investments in associates
Cost
3,054,611 3,054,611
Post acquisition share of profits and reserves net of
impairment losses
Share of profit / (loss) from associates - net of tax 304,931 (120,420)
Share of other comprehensive (loss) / income - net of tax (6,069) 6,404
Share of other reserves of associates 8,997 -
Dividends received during the year (65,110) (17,757)
Balance as on December 31 22.4.1 3,773,974 3,531,225
171
22.4.1 Investments in equity instruments of associates - Quoted
IGI Insurance Limited 22.4.1.1

Equity held 10.61% (2014: 10.61%) 1,313,389 1,211,651

Tri-Pack Films Limited

Equity held 33.33% (2014: 33.33%) 2,460,585 2,319,574

IGI Investment Bank Limited 22.4.1.1

Equity held 2.17% (2014: 2.17%) - -
Market value - Rs. 7.239 million (2014: Rs. 10.928 million)
3,773,974 3,531,225

22.4.1.1 The Group’s investment in IGI Insurance Limited and IGI Investment Bank Limited is less than 20% but they are
considered to be associates as per the requirement of IAS 28 ‘Investments in Associates’ because the Group has
significant influence over the financial and operating policies of these companies through representation on the
board of directors of these companies.

22.4.2 The summarised financial information of the associates of the Group, all of which are incorporated in Pakistan,
are as follows:
(Rupees in thousand) Assets Liabilities Revenues Profit / (loss)

December 31, 2015
IGI Insurance Limited 28,314,502 14,839,144 4,948,530 1,975,294

Tri-Pack Films Limited 11,314,925 9,201,123 11,954,171 498,191
IGI Investment Bank Limited 1,070,427 861,271 166,288 (180,016)
40,699,854 24,901,538 17,068,989 2,293,469

December 31, 2014
IGI Insurance Limited 25,957,637 13,633,357 2,697,207 1,427,633

Tri-Pack Films Limited 13,076,574 11,442,121 13,597,081 (199,646)
IGI Investment Bank Limited 1,218,775 829,603 164,025 14,725
40,252,986 25,905,081 16,458,313 1,242,712
172
22.5 Investment in joint ventures
Cost
Opening balance 10,011,843 10,011,843
Interest acquired in joint venture - Plastic Extrusions
(Proprietary) Limited:
Cost of investment 10,799 -
Reserves on date of transfer - -
10,799 -
Closing balance 10,022,642 10,011,843

Post acquisition share of profit/(loss) and reserves
Opening balance (94,191) 4,051
Share of loss from joint venture - net of tax (72,008) (94,239)
Share of other comprehensive loss from joint
venture - net of tax (9,062) (4,003)
Dividends received during the year (739) -
Closing balance (176,000) (94,191)
Balance as on December 31 22.5.1 9,846,642 9,917,652

22.5.1 Investments in equity instruments of joint ventures - Unquoted
Bulleh Shah Packaging (Private) Limited

Equity held 65.00% (2014: 65.00%) 9,836,339 9,917,652
Plastic Extrusions (Proprietary) Limited
500 (2014: Nil) fully paid ordinary shares of ZAR 1 each

Equity held 50.00% (2014: 0.00%) 10,303 -
9,846,642 9,917,652
173
22.5.2 Interest in joint ventures
The following amounts represent the Group’s share of the assets and liabilities, income, expenses, profits and
other results of the joint ventures:

Bulleh Shah Plastic
Packaging Extrusions
(Private) (Proprietary)
(Rupees in thousand) Limited Limited

Interest in joint venture 65.00% 50.00%
Assets
Non - current assets 11,557,802 5,396
Current assets 5,689,299 50,097
17,247,101 55,493
Liabilities
Non - current liabilities 4,530,916 3,481
Current liabilities 3,899,540 31,332
8,430,456 34,813
Net Assets 8,816,645 20,680

Income 10,351,988 193,663
Expenses 10,427,538 187,695
(Loss)/profit for the year - net of tax (75,550) 5,968
Other comprehensive (loss) / income (6,256) 952
Total comprehensive (loss) / income (81,806) 6,920
Proportionate interest in joint venture’s commitments 1,427,261 -

Bulleh Shah Plastic
Packaging Extrusions
(Private) (Proprietary)
(Rupees in thousand) Limited Limited

Interest in joint venture 65.00% 0.00%
Assets
Non - current assets 9,928,959 -
Current assets 6,392,177 -
16,321,136 -
Liabilities
Non - current liabilities 3,303,950 -
Current liabilities 4,118,734 -
7,422,684 -
Net Assets 8,898,452 -

Income 11,031,269 -
Expenses 11,124,575 -
Loss for the year - net of tax (93,306) -
Other comprehensive loss (4,003) -
Total comprehensive loss (97,309) -
Proportionate interest in joint venture’s commitments 1,247,680 -

There are no contingent liabilities relating to the Group’s interest in the joint ventures, and no contingent
liabilities of the ventures themselves.
174
23. Other long term investments

Quoted
Nestle Pakistan Limited 23.1 & 23.2
Equity held 8.05% (2014: 8.05%) 28,464,134 33,208,156
Cost - Rs. 5,778.896 million (2014: Rs. 5,778.896 million)

Unquoted 23.3
Tetra Pak Pakistan Limited 23.1
1,000,000 (2014: 1,000,000) fully paid non-voting
ordinary shares of Rs. 10 each 10,000 10,000

Coca-Cola Beverages Pakistan Limited
500,000 (2014: 500,000) fully paid ordinary shares of Rs. 10 each

Equity held 0.14% (2014: 0.14%) 4,706 4,706

Pakistan Tourism Development Corporation Limited
2,500 (2014: 2,500) fully paid ordinary shares of Rs. 10 each 25 25

Orient Match Company Limited
1,900 (2014: 1,900) fully paid ordinary shares of Rs. 100 each - -
14,731 14,731
28,478,865 33,222,887

23.1 Nestle Pakistan Limited and Tetra Pak Pakistan Limited are associated undertakings as per the Companies
Ordinance, 1984, however, for the purpose of measurement, investments in others have been classified as
available for sale as referred to in note 4.9.

23.2 As of December 31, 2015, an aggregate of 310,000 shares (2014: Nil) of Nestle Pakistan Limited having market
value Rs. 2,418 million (2014: Nil) have been pledged in favor of HBL Pakistan against issuance of SBLC in favor
of HBL Bahrain as referred to in note 18.1.

23.3 Unquoted investments are measured at cost as it is not possible to apply any other valuation methodology.
24. Long term loans and deposits
Considered good
Loans to employees 24.1 4,803 4,755
Loan to SNGPL 24.2 32,800 49,200
Security deposits 20,732 17,313
58,335 71,268
Receivable within one year
Loans to employees 28 (1,551) (1,507)
Loan to SNGPL 28 (16,400) (16,400)
(17,951) (17,907)
40,384 53,361
175
24.1 These represent interest free loans to employees for purchase of motor cycles and cycles and are repayable in
monthly installments over a period of 60 to 260 months.

Loans to employees aggregating Rs. 4.181 million (2014: Rs. 2.909 million) are secured by joint registration of
motor cycles in the name of employees and the Group. The remaining loans are unsecured.

24.2 This represents an unsecured loan given to Sui Northern Gas Pipelines Limited (SNGPL) for the development of
the infrastructure for the supply of natural gas to Bulleh Shah Packaging (Private) Limited, a joint venture entity.
Mark up is charged at the rate of 1.5% per annum and is received annually. The remaining amount is receivable
in 2 annual installments.
25. Stores and spares
Stores [including in transit Rs. 15.037 million

(2014: Rs. 12.216 million)] 262,997 274,996
Spares [including in transit Rs. 1.961 million
(2014: Rs. 0.952 million)] 276,553 274,509
539,550 549,505
26. Stock-in-trade
Raw materials [including in transit Rs. 238.352 million

(2014: Rs. 247.900 million)] 1,666,601 1,843,408
Work-in-process 324,838 327,674
Finished goods 26.1 696,792 741,457
Goods purchased for resale 28,695 28,181
2,716,926 2,940,720
Provision for slow moving items 26.2 (1,580) (4,998)
2,715,346 2,935,722
26.1 Finished goods with a cost Rs. 47.455 million (2014: Rs. 26.176 million) are being valued at net realisable value
of Rs. 38.995 million (2014: Rs. 23.443 million).

26.2 Provision for slow moving items

Provision for the year - 5,325
Stocks written off against provision (3,418) (1,443)
27. Trade debts
Considered good
Related parties - unsecured 27.1 93,095 15,151
Others 27.2 2,780,927 2,042,201
2,874,022 2,057,352
Considered doubtful 27,622 40,554
2,901,644 2,097,906
Provision for doubtful debts 27.3 (27,622) (40,554)
2,874,022 2,057,352
176

27.1 Related parties - unsecured
Joint ventures
Plastic Extrusions (Proprietary) Limited 27,383 -
Associate
93,095 15,151


27.2 Others include debts of Rs. 262.170 million (2014: Rs. 158.112 million) which are secured by way of bank
guarantees and inland letters of credit.


27.3 The movement in provision during the year is as follows:
Balance as at January 1 40,554 40,735

Bad debts written off (21,178) (14,044)
Balance as at December 31 27,622 40,554
28. Loans, advances, deposits, prepayments and other receivables
Current portion of loans to employees 24 1,551 1,507

Current portion of loan receivable from SNGPL 24 16,400 16,400
Advances - considered good
To employees 28.1 25,572 8,427
To suppliers 33,914 56,271
59,486 64,698
Due from related parties - unsecured 28.2 1,019,428 1,215,261
Trade deposits 51,334 53,557
Security deposits 1,590 92
Letters of credit - margins, deposits, opening charges etc. - 8,971
Prepayments 35,221 18,719
Balances with statutory authorities
Customs duty 9,301 21,966
Sales tax recoverable 92,462 26,409
101,763 48,375
Mark up receivable on:
Loan to SNGPL 33 46
Term deposits and saving accounts 85 85
118 131
Other receivables - considered good 82,972 76,848

1,369,863 1,504,559
177
28.1 Included in advances to employees are amounts due from executives of Rs. 1.654 million (2014: Rs. 1.129
million).
28.2 Due from related parties - unsecured
Joint venture
Bulleh Shah Packaging (Private) Limited 1,004,997 1,212,881
Associates
IGI Finex Securities Limited 11 -

IGI Life Insurance Limited 1,599 283
Tri-Pack Films Limited 174 286
Others
DIC Asia Pacific Pte Limited 677 812
1,019,428 1,215,261

29. Income tax receivable
Income tax refundable 2,506,110 2,305,172

Income tax recoverable 29.1 36,013 36,013
2,542,123 2,341,185

29.1 In 1987, the then Income Tax Officer (ITO) re-opened the Parent Company’s assessments for the accounting
years ended December 31, 1983 and 1984 disallowing primarily tax credit given to the Parent Company under
section 107 of the Income Tax Ordinance, 1979. The tax credit amounting to Rs. 36.013 million on its capital
expenditure for these years was refused on the grounds that such expenditure represented an extension of the
Parent Company’s undertaking which did not qualify for tax credit under this section in view of the the Parent
Company’s location. The assessments for these years were revised by the ITO on these grounds and taxes
reassessed were adjusted against certain sales tax refunds and the tax credits previously determined by the ITO
and set off against the assessments framed for these years.

The Parent Company had filed an appeal against the revised orders of the ITO before the then Commissioner of
Income Tax (Appeals) [CIT(A)], Karachi. CIT(A) in his order issued in 1988, held the assessments reframed by the
ITO for the years 1983 and 1984 presently to be void and of no legal effect. The ITO has filed an appeal against
the CIT(A)’s order with the then Income Tax Appellate Tribunal (ITAT). The ITAT has in its order issued in 1996
maintained the order of CIT(A). The assessing officer after the receipt of the appellate order passed by CIT(A),
had issued notices under section 65 of the Income Tax Ordinance, 1979 and the Parent Company had filed a writ
petition against the aforesaid notices with the High Court of Sindh, the outcome of which is still pending.

The amount recoverable Rs. 36.013 million represents the additional taxes paid as a result of the disallowance
of the tax credits on reframing of the assessments.
178
30. Cash and bank balances
At banks:
On deposit accounts [including ZAR 972,360 (2014: ZAR Nil)] 30.1 158,217 80,924
On saving accounts 20,010 13,481
On current accounts [including USD 277,652 and ZAR 193,759 30.2
(2014: USD 17,284 and ZAR Nil)] 258,310 359,144
436,537 453,549
In hand 5,157 6,748
441,694 460,297

30.1 The balances in saving accounts bear mark-up which ranges from 4.0% to 5.15% (2014: 6.0% to 7.0%) per
annum.
30.2 Included in these are total restricted funds of Rs. 1.332 million (2014: Rs. 1.332 million) held as payable to TFC
holders.

31. Cost of sales
Cost of sales - own manufactured 31.1 17,162,641 15,604,149

Cost of sales - purchased for resale 31.2 145,132 78,410
17,307,773 15,682,559
31.1 Cost of sales - own manufactured

Materials consumed 12,594,280 11,250,414
Salaries, wages and amenities 31.1.1 1,380,407 1,115,466
Fuel and power 756,370 1,164,062
Production supplies 370,347 370,342
Excise duty and sales tax 2,607 3,359
Rent, rates and taxes 31.1.2 7,357 132,519
Insurance 53,043 45,335
Packing expenses 383,580 334,398
Technical fee and royalty 31.1.3 98,174 89,738
17,115,140 15,729,967
Opening work-in-process 327,674 342,748
Closing work-in-process (324,838) (327,674)
Cost of goods produced 17,117,976 15,745,041

Opening stock of finished goods 741,457 600,565
17,859,433 16,345,606
Closing stock of finished goods (696,792) (741,457)
17,162,641 15,604,149
179
Cost of goods produced includes Rs. 1,599.427 million (2014: Rs. 2,106.354 million) for stores and spares
consumed, Rs. 55.254 million (2014: Rs. 18.827 million) and Rs. 6.226 million (2014: Rs. 16.280 million) for
raw material and stores and spares written off respectively.
31.1.1 Salaries, wages and amenities

Gratuity
Net interest on net defined benefit liability / asset (2,576) (1,204)
8,419 9,198

In addition to above, salaries, wages and amenities include Rs. 23.121 million (2014: Rs. 19.525 million),
Rs. 37.497 million (2014: Rs. 31.079 million) and Rs. 34.143 million (2014: Rs. 35.571 million) in respect of

31.1.2 Rent, rates and taxes include operating lease / ijarah rentals amounting to Nil (2014: Rs. 145.921 million).

31.1.3 Technical fee and royalty includes fee for services received from related party amounting to Rs. 71.552 million
(2014: Rs. 63.241 million).

31.2 Cost of sales - purchased for resale
Purchases 145,646 105,694

Opening stock of goods purchased for resale 28,181 897
Closing stock of goods purchased for resale (28,695) (28,181)
145,132 78,410
32. Administrative expenses

Insurance 20,809 13,275
Printing, stationery and periodicals 26,569 21,549
Postage, telephone and telex 19,370 16,576
Motor vehicles running 8,917 16,594
Computer charges 19,975 21,293
Professional services 32.3 127,843 128,798
Security services 3,433 3,634
Other expenses 32.4 88,160 76,447
1,135,786 975,619
Administrative expenses include Rs. 83.545 million (2014: Rs. 65.361 million) for stores and spares consumed.
180

Pension
Net interest on net defined benefit liability / asset (6,117) 72
Gratuity
Net interest on net defined benefit liability / asset (1,239) (481)
3,620 3,672

In addition to above, salaries, wages and amenities include Rs. 11.289 million (2014: Rs. 8.245 million), Rs.
18.323 million (2014: Rs. 13.177 million) and Rs. 16.695 million (2014: Rs. 19.032 million) in respect of

32.2 Rent, rates and taxes include operating lease rentals amounting to Rs. 10.287 million (2014: Rs. 9.917
million).

32.3 Professional services

The charges for professional services include the following
in respect of auditors’ services for:
Statutory audit 6,427 4,002
Half yearly review 1,850 1,245
Tax services 14,752 4,855
Advisory services - 12,500
Workers’ profit participation fund audit, management staff pension
and gratuity fund audit, audit of consolidated financial statements
and other certification charges 2,154 1,245
Out of pocket expenses 1,100 961
26,283 24,808

32.4 Others include penalty paid to the Collector of Customs aggregating to Rs. 0.125 million (2014: Rs. 0.760
million).

33. Distribution and marketing costs
Freight and distribution 176,777 166,419
Insurance 35,216 24,019
Advertising 262,624 183,269
Depreciation on assets subject to finance lease 19.2.1 261 65
Provision for doubtful debts - net 9,634 3,385
Bad debts written off 1,438 2,442
895,060 676,228
181
Distribution and marketing costs include Rs. 19.876 million (2014: Rs. 11.435 million) for stores and spares
consumed.

Gratuity

Net interest on net defined benefit liability / asset (504) (185)
1,646 1,412

In addition to above, salaries, wages and amenities include Rs. 4.611 million (2014: Rs. 3.271 million), Rs. 7.486
million (2014: Rs. 5.231 million) and Rs. 6.821 million (2014: Rs. 7.523 million) in respect of provident fund
contribution, pension fund contribution and accumulating compensated absences respectively.


34. Other operating expenses
Worker’s profit participation fund 16.4 230,337 166,622

Exchange loss - net 41,279 -
Impairment of property, plant and equipment 12,051 -
Assets written off 93 -
Advances written off 9,809 -
Donations 34.1 10,416 18,790
391,701 248,588

34.1 Following is the interest of directors in the donee during the year:

Name of donee Director of the Group Interest in Rupees in
donee thousand

Pakistan Centre for Philanthropy Syed Hyder Ali Director 1,250
Packages Foundation Syed Hyder Ali Trustee 8,980
Rizwan Ghani Trustee

No other directors and their spouses had any interest in any of the donees during the year.
182
35. Other income

Income from financial assets
Income on bank deposits 6,804 5,013
Interest charged on trade and other receivables 2,257 -
Interest on loan to SNGPL 725 976
9,786 5,989
Income from non-financial assets
Rental income from investment property 35.1 51,484 48,093
Profit on disposal of property, plant and equipment 71,850 85,117
Scrap sales 12,130 44,847
135,464 178,057
Others
Insurance commission from related party 5,528 3,197
Provisions and unclaimed balances written back 56,252 46,706
Net gain on insurance claim 21,075 -
Exchange gain - 15,060
Gain on remeasurement of financial instrument - 27,272
Rebate income [including Nil (2014: Rs. 0.974 million) from related party] 13,997 12,846
Others 29,558 35,084
126,410 140,165
271,660 324,211

35.1 The expenses relating directly to the income from investment property amount to Rs. 0.371 million (2014: Rs.
0.386 million).

35.2 The future minimum lease payments receivable under non-cancellable operating leases are as follows:


9,321 32,023

36. Finance costs
Interest and mark up including commitment charges on:
Long term finances - secured
Local currency loans 191,537 302,293
Foreign currency loans 45,995 -
Return on preference shares / convertible stock 336,050 355,050
Loan handling charges 232 1,232
Commission on guarantees 14,932 1,206
Bank charges 7,952 4,596
757,823 841,120
183
37. Investment Income
This represents dividend income from other long term investments as referred in note 23.
38. Tax
Current
Current year 38.1 614,582 466,155

Prior years 97,763 109,723
712,345 575,878
Deferred
355,505 (258,612)
1,067,850 317,266

38.1 The investment tax credit amounting to Rs. 57.752 million (2014: Rs. 54 million) available to the Group by virtue
of investment in plant and machinery in accordance with Section 65B of the Income Tax Ordinance, 2001 has
been netted off against the current tax charge for the year.

For the purposes of current taxation, the tax losses available for carry forward as at December 31, 2015 are
estimated approximately at Rs. 127.400 million (2014: Rs. 611.048 million).

Percentage 2015 2014
38.2 Tax charge reconciliation
Numerical reconciliation between the average effective tax rate

and the applicable tax rate
Applicable tax rate 32.00 33.00
Tax effect of amounts that are:
Associates and joint ventures results reported net of tax 1.40 2.69
Differences in overseas taxation rates (0.59) (0.86)
Asset for share transaction of foreign subsidiary 6.16 -
Not deductible for tax purposes 2.21 2.17
Deductible for tax purposes (0.63) (0.88)
Exempt for tax purposes (1.14) (0.54)
Chargeable to tax at different rates (13.21) (20.24)
Effect of change in prior years’ tax 2.19 3.72
Tax credits and losses in respect of which no deferred tax asset
has been recognised 0.19 (5.96)
Tax credits and losses recognised during the year (3.24) -
Investment tax credit (1.42) (1.99)
(8.08) (21.89)
Average effective tax rate charged to consolidated profit and loss account 23.92 11.11
184
39. Remuneration of Chief Executive, Directors and Executives
39.1 The aggregate amount charged in the consolidated financial statements for the year for remuneration, including
certain benefits, to the Chief Executive, full time working Directors and Executives of the Group are as follows:
Chief Executive Directors Executives


Short term employee benefits
Managerial remuneration 16,819 14,583 7,209 14,982 207,517 155,617

Housing 6,786 5,811 2,806 8,495 83,755 76,804
Utilities 1,508 1,291 623 1,419 19,852 17,198
Bonus 16,643 3,767 6,985 3,179 101,332 45,158
Leave passage 4,498 4,545 521 2,089 6,453 6,328
Medical expenses 3,159 2,152 119 228 2,498 1,772
Club expenses 33 28 17 320 4,459 2,374
Others - - - - 48,860 37,829
49,446 32,177 18,280 30,712 474,726 343,080

Post employment benefits
Contribution to provident,
gratuity and pension funds 5,271 4,456 2,159 3,021 43,548 36,703
Other long term benefits
Accumulating compensated
absences 3,694 2,432 886 502 13,401 16,762
58,411 39,065 21,325 34,235 531,675 396,545
Number of persons 1 1 1 3 111 107
The Group also provides the Chief Executive and some of the Directors and Executives with free transport and
residential telephones.
39.2 Remuneration to other directors

Aggregate amount charged in the consolidated financial statements for the year for fee to 5 non-executive
directors (2014: 5 non-executive directors) is Rs. 2,775,000 (2014: Rs. 1,700,000).
185
40. Transactions with related parties
The related parties comprise joint ventures, associates, directors, key management personnel and post
employment benefit plans. The Group in the normal course of business carries out transactions with various
related parties. Amounts due from and to related parties are shown under receivables and payables, amounts
due from directors and key management personnel are shown under receivables and remuneration of directors
and key management personnel is disclosed in note 39. Other significant transactions with related parties are as
follows:

Relationship with the Nature of transactions 2015 2014
Group (Rupees in thousand)

i. Joint ventures Purchase of goods and services 2,649,621 2,736,923
Purchase of property, plant & equipment 437 -
ii. Associates Purchase of goods and services 1,051,131 1,200,771

Insurance premium 164,007 139,200
Commission earned 5,528 3,197
Insurance claims received 1,177 1,463
Rental and other income 573 458
the associate - 283
iii. Other related parties Purchase of goods and services 301,892 239,654
Sale of goods and services - 703
Royalty and technical fee 71,552 63,241
Rebate received - 974
Disbursement of loan from shareholder
of Parent Company 600,000 -
Repayment of loan to shareholder
of Parent Company 100,000 -
iv. Post employment benefit Expense charged in respect of

plans retirement benefit plans 98,445 98,102

All transactions with related parties have been carried out on mutually agreed terms and conditions.
There are no transactions with key management personnel other than under the terms of employment.
41. Capacity and production - tons

Capacity Actual production
2015 2014 2015 2014

Paper and paperboard produced 41,400 41,400 11,131 10,116
Paper and paperboard converted 45,526 45,526 34,510 32,511
Plastics all sorts converted 29,758 20,000 26,815 17,553
Inks produced 11,048 11,060 8,748 8,210
Flexible packaging material - meters ‘000’ 90,000 90,000 53,800 48,493

The variance of actual production from capacity is primarily on account of the product mix.
186
2015 2014

42. Number of employees
Total number of employees as at December 31 2,049 1,881

Average number of employees during the year 1,965 1,886

43. Rates of exchange
Liabilities in foreign currencies have been translated into PAK Rupees at USD 0.9542 (2014: USD 0.9940), EURO
0.8731 (2014: EURO 0.8172), CHF 0.9437 (2014: CHF 0.9828), SEK 8.0257 (2014: SEK 7.6982), GBP 0.6437
(2014: GBP 0.6384), SGD 1.3490 (2014: SGD 1.3134), YEN 114.8633 (2014: YEN 118.7366), SLR 129.7522
(2014: SLR 129.7522) and ZAR 6.783 (2014: Nil) equal to Rs. 100. Assets in foreign currencies have been
translated into PKR at USD 0.9560 (2014: USD 0.9960), SLR 129.7522 (2014: SLR 129.7522) and ZAR 6.783
(2014: Nil) equal to Rs. 100.
44. Cash generated from operations
Adjustments for:
Gain on remeasurement of financial instrument 35 - (27,272)
Amortisation on intangible assets 21.1 19,250 17,115
Provision for accumulating compensated absences 58,892 64,300
Provision for retirement benefits 11 7,568 14,355
Provision for doubtful debts 27.3 8,246 13,863
Exchange adjustments (340,351) (29,299)
Net profit on disposal of property, plant and equipment 35 (71,850) (85,117)
Impairment of property, plant and equipment 34 12,144 -
Advances written off 34 9,809 -
Finance costs 36 757,823 841,120
Dividend income 37 (2,387,359) (2,444,434)
Share of profit of investments accounted for under
equity method - net of tax (232,923) 214,659
Profit before working capital changes 3,028,315 2,039,505
Effect on cash flow due to working capital changes:

Decrease in stores and spares 9,955 76,759
Decrease / (increase) in stock-in-trade 537,505 (114,429)
(Increase) / decrease in trade debts (233,044) 29,784
Decrease in loans, advances, deposits, prepayments
and other receivables 124,887 20,226
Increase in trade and other payables 633,450 359,421
1,072,753 371,761
4,101,068 2,411,266
187
45. Cash and cash equivalents

Finances under mark up arrangements - secured 15 (1,183,699) (1,607,583)
(742,005) (1,147,286)
2015 2014
46. Earnings per share

46.1 Basic earnings per share

Earnings per share Rupees 37.48 28.40

46.2 Diluted earnings per share

Return on preference shares /
convertible stock - net of tax Rupees in thousand 270,990 284,248
3,571,934 2,694,219

Weighted average number of notionally
converted preference shares / convertible stock Numbers 17,996,431 21,201,910
106,066,346 106,066,346

Diluted earnings per share Rupees 33.68 25.40

47. Segment Information
A business segment is a group of assets and operations engaged in providing products that are subject to risk
and returns that are different from those of other business segments.

Types of Segments Nature of business

Packaging Manufacture and market packing products
Consumer Products Manufacture and market consumer and tissue products
Ink Manufacture and market industrial and commercial ink products
Real Estate Construction and development of real estate
General & Others Workshop and other general business
188
Consumer Products
Packaging Division Division Ink Division Real Estate General & Others Total
(Rupees in thousand) 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

Total revenue 16,569,174 13,995,713 3,253,430 2,721,028 3,442,790 3,187,554 - - 284,298 216,774 23,549,692 20,121,069
Intersegment revenue 443,863 402,643 8,576 11,531 904,828 852,623 - - 131,716 127,271 1,488,983 1,394,067
Revenue from external customers 16,125,311 13,593,070 3,244,854 2,709,497 2,537,962 2,334,931 - - 152,582 89,503 22,060,709 18,727,002
Interest revenue 4,688 1,278 - - - - 3,212 420 1,886 4,291 9,786 5,989
Interest expense 161,102 103,184 17,591 15,709 30,529 59,306 - - 548,601 662,921 757,823 841,120
Depreciation and amortisation 538,851 484,810 97,687 81,355 22,617 24,008 2,668 2,194 79,985 28,090 741,808 620,457

Segment profit / (loss) before tax 1,674,627 987,020 464,715 34,489 486,178 353,128 (70,196) (40,082) 1,905,823 1,844,453 4,461,147 3,179,008
Segment tax 469,128 142,903 32,989 25,204 153,830 107,539 2,083 4 346,030 70,978 1,004,060 346,628
Segment profit / (loss) after tax 1,205,499 844,117 431,726 9,285 332,348 245,589 (72,279) (40,086) 1,559,793 1,773,475 3,457,087 2,832,380
Segment assets 8,449,722 6,568,797 1,427,980 1,385,332 1,310,250 1,265,593 5,107,501 1,076,708 1,145,445 934,213 17,440,898 11,230,643
189
47.1 Reconciliation of segment profit
Total profit for reportable segments 4,461,147 3,179,008

Net income / (loss) from associates and joint ventures 167,074 (232,416)
Intercompany adjustment (163,713) (89,719)

47.2 Reconciliation of segment assets
Total assets for reportable segments 17,440,898 11,230,643

Intersegment assets (3,101,229) (1,111,613)
Other corporate assets 49,081,905 51,938,465
Total assets 63,421,574 62,057,495

47.3 Reconciliation of segment tax
Total tax expense for reportable segments 1,004,060 346,628

Intercompany adjustment 63,790 (29,362)
Tax as per consolidated profit and loss account 1,067,850 317,266
47.4 Reconciliation of segment profit after tax
Total profit after tax for reportable segments 3,457,087 2,832,380

Intercompany adjustment for profit / (loss) before tax 3,361 (322,135)
Intercompany adjustment for taxation (63,790) 29,362
Profit as per consolidated profit and loss account 3,396,658 2,539,607

47.5 Information by geographical area
Revenue Non - current assets


Afghanistan 21,780 40,731 - -
Bahrain 14,302 158,632 - -
Bangladesh 195,999 13,145 - -
Indonesia 72 - - -
Kenya 36,644 - - -
Mauritius - - 135,939 -
Oman - 5,671 - -
Pakistan 18,315,501 17,193,824 9,120,280 5,051,675
South Africa 2,160,709 - 1,271,586 -
Sri Lanka 1,309,811 1,307,194 341,407 397,555
UAE 5,891 7,804 - -
22,060,709 18,727,001 10,869,212 5,449,230
Sales are allocated to geographical areas according to the country of receiving the goods or providing services.
190
47.6 Information about major customers
Included in the total revenue is revenue from four (2014: four) customers of the Group from the packaging
(2014: packaging) segment which represents approximately Rs. 8,198.683 million (2014: Rs. 7,827.156 million)
of the Group’s total revenue.

48. Business combinations
On June 01, 2015, the Group acquired all the assets and liabilities, of Flexco Investments Proprietary Limited,
South Africa (‘Flexco’) in accordance with the ‘Sale of Business Agreement’ executed between the Group, Flexco,
Michael Hoffman and Wayne Hoffman through Flexible Packages Convertors (Proprietary) Limited, (FPCPL) for
an aggregate cash consideration of ZAR 122.409 million (equivalent to Rs. 1,038.947 million) and issuance of
83,863,636 shares by FPCPL of ZAR 1 per share. Pursuant to the acquisition, the Group effectively holds 55%
shares in FPCPL. Further, the Group also has the right to exercise a call option for the remaining 45% shares
in FPCPL, subject to fulfillment of certain conditions, after completion of four years from the acquisition of
FPCPL.

(Rupees in thousand) Note
Acquisition date fair value of consideration paid

Paid in cash (ZAR 122.409 million) 1,038,947
Fair value of ordinary shares issued (ZAR 83.863 million) 48.1 711,793
1,750,740

48.1 The fair value of the 83,863,636 shares issued on June 01, 2015, as part of the purchase consideration was
based on the par value of ZAR 1.00 per share (equivalent to Rs. 8.488 per share).

The assets and liabilities recognised as a result of the acquisition are as follows:
Property, plant and equipment 1,744,551

Intangible assets 1,341
Investments in joint ventures 10,799
Stock in trade 317,129
Trade debts 591,872
Cash and bank balances 10,023
Trade and other payables (584,994)
Liabilities against assets subject to finance lease (388,486)
Finances under mark up arrangements - secured (121,240)
Net identifiable assets acquired 1,580,995

Goodwill 169,745
Net assets acquired 1,750,740

Goodwill of Rs. 169.745 million arising from the acquisition consists largely of the synergies and economies of
scale expected from combining the operations of the entities, as well as from intangible assets which did not
qualify for separate recognition. Goodwill is not deductible for income tax purposes.
191

Purchase consideration – cash outflow
Outflow of cash to acquire subsidiary, net of cash acquired

Cash consideration 1,038,947
Balances acquired
Cash and bank balances (10,023)
Finances under mark up arrangements - secured 121,240
111,217
Net outflow of cash – investing activities 1,150,164
Revenue and profit contribution
The acquired business contributed revenues of Rs. 2,161 million and net loss of Rs. 193 million to the Group for
the period from 1 June to 31 December 2015.

49. Financial risk management
49.1 Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value
interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall
risk management programme focuses on the unpredictably of financial markets and seeks to minimise potential
adverse effects on the Group’s financial performance. The Group uses derivative financial instruments to hedge
certain risk exposures.

Risk management is carried out by the Group’s finance department under policies approved by the Board of
Directors. The Group’s finance department evaluates and hedges financial risks. The Board provides written
principles for overall risk management, as well as written policies covering specific areas, such as foreign
exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial
instruments, and investment of excess liquidity.

The Group’s overall risk management procedures to minimise the potential adverse effects of financial market
on the Group’s performance are as follows:

(a) Market risk
(i) Foreign exchange risk
Foreign exchange risk is the risk that the fair value of future cash flows of a financial instrument shall fluctuate
because of changes in foreign exchange rates.

The Group operates internationally and is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US dollar, the Euro and the Sri Lankan rupee. Foreign exchange risk
arises from future commercial transactions and recognised assets and liabilities. Foreign exchange risk arises
when future commercial transactions or recognised assets or liabilities or net investments in foreign operations
that are denominated in a currency that is not the Group’s functional currency.

At December 31, 2015, if the Rupee had strengthened / weakened by 10% against the US dollar with all other
Rs. 22.991 million higher / lower) mainly as a result of foreign exchange gains / losses on translation of US
dollar-denominated financial assets and liabilities.
192
At December 31, 2015, if the Rupee had strengthened / weakened by 10% against the Euro with all other
Rs. 82.493 million) higher / lower, mainly as a result of foreign exchange gains / losses on translation of Euro-
denominated financial assets and liabilities.
At December 31, 2015, if the Rupee had strengthened / weakened by 10% against the Sri Lankan rupee with all
other variables held constant, other component of equity would have been Rs. 71.268 million (2014: Rs. 68.749
million) lower / higher, mainly as a result of foreign exchange losses / gains on translation of net assets of
Packages Lanka (Private) Limited, denominated in Sri Lankan Rupee.

At December 31, 2015, if the Rupee had strengthened / weakened by 10% against the South African Rand with
all other variables held constant, post-tax profit for the year would have been Rs. 6.432 million higher / lower
(2014: Nil) mainly as a result of foreign exchange gains / losses on translation of Rand-denominated financial
assets and liabilities.

(ii) Price risk
Price risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices (other than those arising from interest rate risk or currency risk), whether
those changes are caused by factors specific to the individual financial instrument or its issuer, or factors
affecting all similar financial instruments traded in the market. The Group is exposed to equity securities price
risk because of investments held by the Group and classified as available for sale. The Group is not exposed
to commodity price risk. To manage its price risk arising from investments in equity securities, the Group
diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the board of
directors.

The Group’s quoted investments in equity of other entities are publicly traded on Pakistan Stock Exchange.

The table below summarises the impact of increases / decreases of the KSE-100 index on the Group’s post-tax
profit for the year and on equity. The analysis is based on the assumption that the KSE had increased / decreased
by 10% with all other variables held constant and all the Group’s equity instruments moved according to the
historical correlation with the index:

Impact on Impact on other

post-tax profit components of equity

Pakistan Stock Exchange - - 1,366,278 (564,539)

Post-tax profit for the year would decrease / increase as a result of losses / gains on equity securities classified
as at fair value through profit or loss. Other components of equity would decrease / increase as a result of losses
/ gains on equity securities classified as available for sale.

(iii) Cash flow and fair value interest rate risk
As the Group has no significant floating interest rate assets, the Group’s income is substantially independent of
changes in market interest rates.

The Group’s interest rate risk arises from short term and long term borrowings. These borrowings issued at
variable rates expose the Group to cash flow interest rate risk.

193
The Group analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into
consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these
scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift. The scenarios are
run only for liabilities that represent the major interest-bearing positions.

At December 31, 2015, if interest rates on floating rate borrowings had been 1% higher / lower with all other
variables held constant, post-tax profit for the year would have been Rs. 37.390 million (2014: Rs. 26.989
million ) lower / higher, mainly as a result of higher / lower interest expense on floating rate borrowings.
(b) Credit risk
Credit risk represents the risk of financial loss being caused if counter party fails to discharge an obligation.
Credit risk of the Group arises from cash and cash equivalents, derivative financial instruments and deposits with
banks and financial institutions, as well as credit exposures to distributors and wholesale and retail customers,
including outstanding receivables and committed transactions. The management assesses the credit quality of
the customers, taking into account their financial position, past experience and other factors. Individual risk
limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation
of credit limits is regularly monitored and major sales to retail customers are settled in cash. For banks and
financial institutions, only independently rated parties with a strong credit rating are accepted.

The Group monitors the credit quality of its financial assets with reference to historical performance of such
assets and available external credit ratings. The carrying values of financial assets exposed to credit risk and
which are neither past due nor impaired are as under:


Trade debts 2,061,244 1,382,105
3,711,558 3,261,782

As of December 31, 2015, trade receivables of Rs. 812.778 million (2014: Rs. 675.247 million) were past due
but not impaired. These relate to a number of independent customers for whom there is no recent history of
default. The aging analysis of these trade receivables is as follows:


Up to 90 days 714,098 630,851
90 to 180 days 89,352 32,212
181 to 365 days 9,328 12,184
812,778 675,247

The management estimates the recoverability of trade receivables on the basis of financial position and past
history of its customers based on the objective evidence that it shall not receive the amount due from the
particular customer. The provision is written off by the Group when it expects that it cannot recover the balance
due. Any subsequent repayments in relation to amount written off, are credited directly to consolidated profit
and loss account.

194
The aging analysis of trade receivables from related parties as at balance sheet date is as follows:


Up to 90 days 17,752 8,963
90 to 180 days 4,190 845
181 to 365 days 694 349
22,636 10,157
The credit quality of Group’s bank balances can be assessed with reference to external credit ratings as follows:

Rating Rating Rating
(Rupees in thousand) Short term Long term Agency 2015 2014

Bank Al-Habib Limited A1+ AA+ PACRA - 1,066
Bank Alfalah Limited A1+ AA PACRA 1,184 -
Barclay’s Bank
PLC Pakistan P-1 A2 Moody’s - 64
Citibank N.A. P-1 A2 Moody’s 357 204
Commercial Bank of Ceylon
Limited Sri Lanka AA- Fitch 7 8
Deutsche Bank A.G. P-2 A3 Moody’s 70,981 85,065
Dubai Islamic Bank
(Pakistan) Limited A1 A+ JCR-VIS - 712
Faysal Bank Limited A1+ AA PACRA 42,542 42,591
Habib Bank Limited A1+ AAA JCR-VIS 928 860
Al Baraka Bank
(Pakistan) Limited A1 A PACRA 1 -
Habib Bank Limited
Sri Lanka A-1+ AAA JCR-VIS 171 759
Habib Bank Limited
Mauritius A-1+ AAA JCR-VIS 10,963 -
First National Bank
South Africa A JCR-VIS 7,326 -
Hatton Bank Limited
Sri Lanka AA- Fitch 6,443 3,799
HSBC Bank Middle P-1 A2 Moody’s -
JS Bank Limited A1+ A+ PACRA 282 78
MCB Bank Limited A1+ AAA PACRA 26,120 3,128
MCB Bank Limited
Sri Lanka A+ AAA PACRA 120,934 105,869
Meezan Bank Limited A1+ AA JCR-VIS 1,971 111,684
National Bank of Pakistan A1+ AAA PACRA 26,079 3,758
NDB Bank AA- Fitch 28,837 9,336
NIB Bank Limited A1+ AA- PACRA 82,435 41,061
Samba bank A1 AA JCR-VIS 1,332 1,675
Standard Chartered Bank
Pakistan Limited A1+ AAA PACRA 7,492 41,638
The Bank of Punjab A1+ AA- PACRA 152 194
436,537 453,549
195
(c) Liquidity risk
Liquidity risk represents the risk that the Group shall encounter difficulties in meeting obligations associated
with financial liabilities.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability
of funding through an adequate amount of committed credit facilities. Due to the dynamic nature of the Group’s
businesses, the Group’s finance department maintains flexibility in funding by maintaining availability under
committed credit lines.

Management monitors the forecasts of the Group’s cash and cash equivalents (note 45) on the basis of expected
cash flow. This is generally carried out in accordance with practice and limits set by the Group. These limits vary
by location to take into account the liquidity of the market in which the entity operates. In addition, the Group’s
liquidity management policy involves projecting cash flows in each quarter and considering the level of liquid
assets necessary to meet its liabilities, monitoring balance sheet liquidity ratios against internal and external
regulatory requirements and maintaining debt financing plans.

The table below analyses the Group’s financial liabilities and net-settled derivative financial liabilities into
relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash flows as the impact of discounting is
not significant.

Less than 1 Between 1 Between 2 Over
(Rupees in thousand) year and 2 years and 5 years 5 years

Long term finances 448,711 634,425 2,127,215 64,590
Finances under mark
Accrued finance costs 367,612 - - -
6,886,992 806,557 2,147,457 64,590

Less than 1 Between 1 Between 2 Over
(Rupees in thousand) year and 2 years and 5 years 5 years

Long term finances 266,674 385,710 485,710 1,228,580
Finances under mark
Accrued finance costs 526,943 - - -
5,967,808 390,941 506,164 1,228,580
196
49.2 Financial instruments by categories
The carrying values of following financial assets and liabilities reflected in the consolidated financial statements
approximate their fair values. Fair value is determined on the basis of objective evidence at reporting date.
Loans and receivables

Financial assets
Trade debts 2,874,022 2,057,352
4,524,336 3,937,029
At amortised cost

Financial liabilities
Long term finances - secured 3,274,941 2,566,695
Finances under mark up arrangements - secured 1,183,699 1,607,583
Trade and other payables 4,784,041 3,561,912
Accrued finance cost 367,612 526,943
9,905,596 8,293,514

49.3 Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’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

The Group manages its capital structure and makes adjustments to it in the light of changes in economic
conditions. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends
paid to shareholders or issue new shares. Consistent with the others in industry, the Group monitors capital on
the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated
as total borrowings including the current and non-current borrowings as disclosed in note 7 less cash and cash
equivalents as disclosed in note 45. Total capital is calculated as equity as shown in the balance sheet plus net
debt. The gearing ratio as at year end is as follows:


Current portion of long term finances 7 448,711 266,674
Cash and cash equivalents 45 742,005 1,147,286
Net debt 6,953,201 5,842,796

Total equity 48,163,139 50,592,389
Total capital 55,116,340 56,435,185
Gearing ratio 13% 10%
197
49.4 Fair value of financial instruments
Fair value is the amount for which an asset could be exchanged, or liability settled, between knowledgeable
willing parties in an arm’s length transaction. Underlying the definition of fair value is the presumption that the
Group is a going concern without any intention or requirement to curtail materially the scale of its operations or
to undertake a transaction on adverse terms. The carrying values of all financial assets and liabilities reflected
in these consolidated financial statements approximate their fair values. Fair value is determined on the basis of
objective evidence at each reporting date.
The carrying amount less impairment provision of trade receivables and payables are assumed to approximate
their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the
future contractual cash flows at the current market interest rate that is available to the Group for similar financial
instruments.

Specific valuation techniques used to value financial instruments include:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices) (level 2)
- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
(level 3)

The following table presents the Group’s assets that are measured at fair value:

Assets


Assets

Valuation techniques used to measure fair values
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance
sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange,
dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and
regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial
assets held by the Group is the current bid price. These instruments are included in Level 1.The fair value of
financial instruments that are not traded in an active market is determined by using valuation techniques.
These valuation techniques maximise the use of observable market data where it is available and rely as little as
possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in Level 2. If one or more of the significant inputs is not based on observable market
data, the instrument is included in Level 3.
198
There were no other material Level 1, 2 or 3 assets or liabilities during current or prior year.

There were no transfers between levels 1 and 2 for recurring fair value measurements during the year.
50. Detail of subsidiaries

Accounting Percentage Country of
Name of the subsidiaries year end of holding incorporation

Anemone Holdings Limited December 31, 2015 100% Mauritius
Calcipack (Private) Limited December 31, 2015 100% Pakistan
DIC Pakistan Limited December 31, 2015 54.98% Pakistan
Packages Construction (Private) Limited December 31, 2015 99.99% Pakistan
Packages Lanka (Private) Limited December 31, 2015 79.07% Sri Lanka
Flexible Packages Convertors
(Proprietary) Limited February 29, 2016 55.00% South Africa

51. Date of authorisation for issue
These financial statements were authorised for issue on February 25, 2016 by the Board of Directors of the
Parent Company.

52. Non-adjusting events after the balance sheet date
On February 2, 2016, IFC exercised its right to convert 1,000,000 (2014: 1,000,000) preference share
/ convertible stock of Rs 190 each into 1,000,000 (2014: 1,000,000) ordinary shares of Rs. 10 each. This
conversion is expected to take place prior to book closure date.
The Board of Directors has proposed a final cash dividend for the year ended December 31, 2015 of Rs. 15 per
share (2014: Rs. 9.00 per share), at their meeting held on February 25, 2016 for approval of the members at the
Annual General Meeting to be held on April 25, 2016. The Board has also recommended to transfer Rs. 1,500
million (2014: Rs. 1,500 million) to general reserve from unappropriated profit.

The Finance Act, 2015 introduced income tax at the rate of 10% on undistributed reserves where such reserves
of the Group are in excess of its paid up capital and the Group derives profits for a tax year but does not
distribute requisite cash dividend within six months of the end of the said tax year. Liability in respect of such
income tax, if any, is recognised when the prescribed time period for distribution of dividend expires.

53. Corresponding figures
Corresponding figures have been re-arranged and reclassified, wherever necessary, for the purposes of
comparison. However, no significant reclassifications have been made.

199
NOTES
200
VIDEO CONFERENCE FACILITY
In this regard, please fill the following form and submit to registered address of the Company 10 days before holding
of the Annual General Meeting.
If the Company receives consent from members holding in aggregate 10% or more shareholding residing at a
geographical location, to participate in the meeting through video conference at least 10 days prior to date of
meeting, the Company
will arrange video conference facility in the city subject to availability of such facility in that city.
The Company will intimate members regarding venue of video conference facility at least 5 days before the date of
the Annual General Meeting along with complete information necessary to enable them to access the facility.
VIDEO CONFERENCE CONSENT FORM
I/We, ___________________________________________ of _________________________________________ being a member of
Packages Limited, holder of ____________________ Ordinary shares as per Register Folio No._________________ hereby
opt for video conference facility at ____________________.
_____________________
Signature of member
201
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POSTAGE
The Company Secretary

PACKAGES LIMITED
Suite # 416 - 422
G-20, Block 9, Khayaban-e-Jami
Clifton, Karachi - 75600
202
‫‪CONSOLIDATED FINANCIAL STATEMENTS 2015‬‬
‫وڈیو کانفرنس کی سہولت‬
‫اس سلسلےمیں برائے مہربانی مندرجہ ذیل فارم بھر کر اسے کمپنی کے رجسٹرڈ ا ٓفس میں ساالنہ اجالس عام کے انعقاد سے ‪10‬دن قبل جمع کرا دیں۔اگر‬
‫کمپنی کو اجالس سے ‪10‬دن قبل کسی جغرافیائی جگہ پر رہائش پزیر ممبران جو ‪10‬فیصد یا اس سے زائد حصص کے حامل ہوں کی جانب سے رضامندی‬
‫موصول ہوتی ہے کہ وہ اجالس میں بذریعہ وڈیو کانفرنس شرکت کریں گے تو اس شہر میں وڈیو کانفرنس کا انتظام کر دیا جائے گاجس کا انحصار اس شہر‬
‫میں مذکورہ سہولت کی دستیابی پر ہو گا۔‬
‫کمپنی ساالنہ اجالس عام کے انعقاد سے ‪5‬دن قبل ممبران کو وڈیو کانفرنس سہولت کے مقام سے مطلع کر دے گی بمعہ ان تمام مکمل معلومات کے جو‬
‫انہیں مذ کورہ سہولت تک رسائی کے قابل کر سکیں۔‬
‫وڈیو کانفرنس رضامندی کا فارم‬
‫رہائشی‬ ‫میں ‪ /‬ہم‬
‫عام شئیر کا ‪ /‬کی حامل ‪ ،‬بحوالہ رجسٹرڈ فولیو نمبر‬ ‫پکیجز لمیٹڈ کا ‪/‬کی ایک ممبر‬
‫لینے کا انتخاب کرتا ‪ /‬کرتی ہوں۔‬ ‫بذریعہ وڈیو کانفرنس کی سہولت بمقام‬
‫ممبر کے دستخط‪:‬‬
‫‪203‬‬
AFFIX
CORRECT
POSTAGE

PACKAGES LIMITED
Suite # 416 - 422
204
ELECTRONIC TRANSMISSION CONSENT
Pursuant to the allowance granted through SRO 787(I)/2014 of September 8, 2014, by the Securities Exchange
Commission of Pakistan, the Company can circulate its annual balance sheet and profit and loss accounts, auditor’s
report and directors’ report etc. (“Audited Financial Statements”) along with the Company’s Notice of Annual General
Meeting through email to its shareholders. Those shareholders who wish to receive the Company’s Annual Report
via email are requested to provide a completed consent form to the Company’s Share Registrar, FAMCO Associates
(Pvt) Limited.
PLEASE NOTE THAT RECEIPT OF THE ANNUAL REPORT VIA EMAIL IS OPTIONAL AND NOT COMPULSORY.
ELECTRONIC TRANSMISSION CONSENT FORM
The Share Registrar

Date:__________________
FAMCO Associates (Pvt) Limited
8F, Block 6, PECHS, Nursery,
Next to Hotel Faran, Shahrah-e-Faisal,
Karachi.
Pursuant to the directions given by the Securities Exchange Commission of Pakistan through its SRO 787(I)/2014
of September 8, 2014, I, Mr./Ms.____________________________S/o, D/o, W/o _______________________________ hereby
consent to have Packages Limited’s Audited Financial Statements and Notice of Annual General Meeting delivered to
me via
email on my email address provided below:
Name of Member/ Shareholder _________________________________________________________________________________
Folio/ CDC Account Number ___________________________________________________________________________________
Email Address: _________________________________________________________________________________________________
It is stated that the above mentioned information is true and correct and that I shall notify the Company and its
Share Registrar in writing of any change in my email address or withdrawal of my consent to email delivery of the
Company’s Audited Financial Statements and Notice of Annual General Meeting.
_______________________________
Signature of the Member/ Shareholder
205
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CORRECT
POSTAGE

PACKAGES LIMITED
Suite # 416 - 422
206
‫اظہار رضا مندی بابت ترسیل برق روی‬
‫سیکیورٹیزایکسپینج ا ٓف پاکستان کے الیس ا ٓر او ‪ 787(1)/2014‬مورخہ ‪ 8‬ستمبر ‪ 2014‬کےبموجب سہولت مہیا کی گئی ہے کہ کمپنی اپنی ساالنہ بیلنس‬
‫شیٹ اور نفع ونقصان کے گوشوارے محاسب و نظمہ کی مرتب کردہ اطالعائی معلومات( پڑ تال شدہ مالیاتی حسابات) بشمول ساالنہ اجالس عام کی‬
‫اطالع اپنے حصص یا فتگا ن کو بذریعہ ای میل ارسال کرسکتی ہے ۔وہ تمام حصص داران جو کمپنی کی ساالنہ رپورٹ بذریعہ ای میل حاصل کرنے کے‬
‫خواہشمند ہیں ان سے التماس ہے کہ تکمیل شدہ رضامندی کے فارم کمپنی کے شیئر رجسڑار فیمکو ایسوسی ایٹس (پرائیویٹ)لمیٹڈ کو مہیاکریں۔‬
‫یاد دہانی رہے کہ ساال نہ پورٹ کی بذریعہ ای میل وصولی اختیا ری ہے الزمی نہیں ہے۔‬
‫بتار یح‪_____________________:‬‬ ‫اظہار رضا مندی بابت ترسیل برق روی‬

‫شیئر رجسڑار‬
‫فیمکوایسوسیایٹس(پرائیویٹ)لمیٹڈ‬
‫‪ 8-F‬بالک پی ای سی ایچ ایس نر سری‬
‫نزد فاران ہوٹل شاہرا ِہ فیصل‬
‫کراچی۔‬
‫سیکیورٹیز اینڈ ایکسچینج ا ٓف پاکستان کے ایس ا ٓر او ‪ 787(1)/2014‬مورخہ ‪ 8‬ستمبر‪2014‬کی تعمیل کرتے ہو ئے میں مسمی‪/‬مسماة‬
‫ولد یت ‪ /‬زوجیت‬
‫پیکیجز لمیٹڈ کے پڑتال شدہ مالیاتی گوشوارے اور ساالنہ اجالس عام کی اطالع بذریعہ ای میل مندرجہ ذیل ای میل پتے پر حاصل کرنا چاہتا‪/‬چاہتی ہوں‬
‫ممبر‪/‬حصص دار کانام ‪:‬‬
‫فو لیو سی ڈی سی اکا ونٹ نمبر‬
‫ای میل ایڈریس‪:‬‬
‫ہرگا ِہ اقرار کیا جاتا ہے کہ مندرجہ باال معلومات صحیح اور درست ہیں اور یہ کہ میںکمپنی اور اس کے شیئر رجسڑار کو تحریری طور پر ای میل ایڈریس‬
‫میں تبدیلی یا بذریعہ ای میل کمپنی کے پڑتال شدہ حسابات اورساالنہ اجالس عام کی اطالع کی وصولی یا منسوخی کے بارے میں مطلع کروں گا۔‬
‫ممبرحصص دارکے دستخط‪:‬‬
‫‪207‬‬
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PACKAGES LIMITED
Suite # 416 - 422
208
FORM OF PROXY
61st Annual General Meeting
I/We
of being a member of Packages Limited and
holder of Ordinary shares as per Shares Register Folio No.

(Number of Shares)
and / or CDC Participant I.D. No. and Sub Account No.
hereby appoint of or failing him / her
of or failing him / her of as my proxy to vote for me and
on my behalf at the Annual General Meeting of the Company to be held on Monday, April 25, 2016 at 10:30
a.m. at Beach Luxury Hotel, Moulvi Tamizuddin Khan Road, Karachi and at any adjournment thereof.
Signed this day of 2016.
WITNESSES:
1. Signature :
Name :
Address :
Please affix
CNIC or
Signature Rupees five
Passport No. :
revenue stamp
2. Signature : (Signature should agree with

Name : the specimen signature
registered with the Company)
Address :
CNIC or
Passport No.:
Note : Proxies, in order to be effective, must be received by the Company not less than 48 hours before the
meeting. A proxy need not to be a member of the Company.
CDC Shareholders and their Proxies are requested to attach an attested photocopy of their Computerised
National Identity Card or Passport with this proxy form before submission to the Company.
209
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POSTAGE

PACKAGES LIMITED
Suite # 416 - 422
210
‫تشکیل نیابت داری‬

‫‪61‬واں ساالنہ اجالس عام‬
‫میں ‪ /‬ہم ۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔‬
‫ساکن ۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔بطور پیکیجز لمیٹڈ‬
‫رکن و حامل ۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔عام حصص بمطا بق شیئر رجسٹرڈ فولیو نمبر۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔‬
‫اور یا سی ڈی سی کے شراکتی ا ٓئی ڈی نمبر ۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔اور ذیلی کھاتہ نمبر۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔‬
‫ساکن ۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔ یا بصورت دیگر ۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔ ساکن ۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔‬
‫کو اپنی جگہ بروز پیر مورخہ ‪25‬اپریل ‪2016‬بوقت ‪10:30‬بجے صبح ‪ ،‬بمقام بیچ لگثری ہوٹل مولوی تمیز الدین خان روڈ کراچی میں منعقد یا ملتوی ہونے والے‬
‫ساالنہ اجالس عام میں رائے دہندگی کے لئے اپنا نمائندہ مقرر کرتا ہوں۔‬
‫دستخط کئے گئے مورخہ ۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔۔ ‪2016‬‬
‫گواہان‪:‬‬
‫دستخط‪:‬‬ ‫‪1‬‬
‫نام‪:‬‬
‫پتہ‪:‬‬
‫سی این ا ٓئی سی یا پاسپورٹ نمبر‪:‬‬
‫براہ کرم پانچ روپے مالیت کے‬
‫ریونیو ٹکٹ چسپاں کریں۔‬ ‫دستخط‬
‫دستخط‪:‬‬ ‫‪2‬‬
‫(دستخط کمپنی میں درج نمونہ کے‬ ‫نام‪:‬‬
‫دستخط کے مطابق ہونےچاہئیے)‬
‫پتہ‪:‬‬
‫سی این ا ٓئی سی یا پاسپورٹ نمبر‪:‬‬
‫نوٹ‪ :‬پراکسیز کے موثر ہونے کے لیے الزم ہے کہ وہ اجالس سے ‪48‬گھنٹے قبل کمپنی کو موصول ہوں۔ نیابت دار کا کمپنی کا رکن ہونا ضروری نہیں ہے۔ سی ڈی‬
‫سی کے حصص یا فتگان اور ان کے نمائندوں سے التماس ہے کہ وہ اپنے کمپیوٹرائزڈ قومی شناختی کارڈ یا پاسپورٹ کی تصدیق شدہ کاپی پراکسی فارم‬
‫کے ساتھ کمپنی میں جمع کرائیں۔‬
‫‪211‬‬
AFFIX
CORRECT
POSTAGE

PACKAGES LIMITED
Suite # 416 - 422
212
INVESTORS’ EDUCATION
In pursuance of SRO 924(1)/2015 dated September 9th, 2015 issued by the Securities and Exchange Commission of
Pakistan (SECP), the following informational message has been reproduced to educate investors:

Annual Report 2015

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About the Cover

On our cover this year, we delve

Now with another year drawing to a

Subsidiaries Joint Venture Associates

Packages Packages Anemone Bulleh-Shah

The Company’s development of a high quality retail

Board of Directors Auditors Head Office & Works

Rizwan Ghani Orr, Dignam & Co. - Karachi

Packages Lanka (Private) Limited

CHIEF EXECUTIVE & MANAGING DIRECTOR

GENERAL CHIEF FINANCIAL HUMAN RESOURCE INDUSTRIAL PERFORMANCE

HEAD OF CONSUMER HEAD OF

FOLDING FLEXIBLE ROLL COVERS AND ADMINISTRATION

From Left to Right From Left to Right

Syeda Henna Babar Ali Numan Noor

Asghar Abbas Ather Ayub Khan

in high value-added packaging for

Consumer Products Division to acquire numerous certifications

The department has been

Entity Rating of Packages Limited

Rating Type Rating Comment

MR. TOWFIQ HABIB CHINOY

SYED HYDER ALI

MR. RIZWAN GHANI

MR. JARI LATVANEN

MR. JOSEF MEINRAD MUELLER

MR. MUHAMMAD AURANGZEB

MR. SHAMIM AHMAD KHAN

SYED ASLAM MEHDI

SYED SHAHID ALI

MR. TARIQ IQBAL KHAN

Executive Committee Audit Committee The terms of reference of the Audit

interim and final audits and any

Improve on contemporary measures including cost, quality, service,

Keep investing in technology, systems and human resource to

Develop relationships with all our stakeholders based on

To be a Company that continuously enhances its superior technological

To be a Company that attracts and retains outstanding people by

To be a Company which combines its people, technology, management

To be a Company that endeavors to set the highest standards in

We are committed to achieving this

1. Complying with all applicable

2. Setting objectives and targets

4. Ensuring that all food related

6. Creating a safe and work friendly

This policy is applicable to each

Quality Policy Total Productive Maintenance Whistle blowing Policy

Underlying everything we do and

Packages Limited has built a reputation

Packages Limited code of conduct has

(Rupees in Million) 2015 2014 2013

Invoiced Sales - Gross 18,711 17,627 17,314*

2012 2011 2010 2009 2008 2007 2006

9,275 28,472 27,749 26,887 25,789 23,691 18,217

844 844 844 844 844 734 699

13,871* 13,797* 21,837 16,533 14,301 10,540 9,028

12.56* 11.55* 4.33 2.19 7.72 13.28 16.50

1.57 2.57 3.52 4.58 1.23 2.46 1.48

15:85 24:76 23:77 25:75 44:56 40:60 30:70