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Contents · PDF file Contents 003 Introduction 005 Company Information 006 Highlights 009 Mission Statement 011 Strategic Vision and Objectives 013 Environment, Health and Safety Policy

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  • Contents

    003 Introduction 005 Company Information 006 Highlights 009 Mission Statement 011 Strategic Vision and Objectives 013 Environment, Health and Safety Policy 015 Quality Policy 017 Notice of Meeting 019 Directors’ Report to the Shareholders 025 Shareholders’ Information 031 Statement of Compliance with the Code of Corporate Governance 035 Statement of Compliance with the Best Practices on Transfer Pricing 037 Review Report to the Members on Statement of Compliance with

    Code of Corporate Governance and Transfer Pricing

    039 Auditors’ Report to the Members 040 Balance Sheet 042 Profit and Loss Account 043 Cash Flow Statement 044 Statement of Changes in Equity 045 Notes to the Accounts 076 Directors’ Report on the Consolidated Accounts to the Shareholders 077 Auditors' Report to the Members on Consolidated

    Financial Statements

    078 Consolidated Financial Statements 116 Ten-year Summary

  • Packages Limited was established in 1957 as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden, to convert paper and paperboard into packaging for consumer industry.

    Over the years, the Company continued to enhance its facilities to meet the growing demand of packaging products. Additional capital was raised from sponsors, International Finance Corporation and from the public in 1965.

    Packages commissioned its own paper mill in 1968 having production capacity of 24,000 tonnes of paper and paperboard based on waste paper and agricultural by-products i.e. wheat straw and river grass. With growing demand the capacity was increased periodically and in December 2003 was about 100 ,000 tonnes per year .

    Since 1982, Packages Limited has a joint venture with Tetra Pak International in Tetra Pak Pakistan Limited to manufacture paperboard for liquid food packaging and to market Tetra Pak packaging equipment.

    In 1993 a joint venture agreement was signed with Mitsubishi Corporation of Japan for the manufacture of Polypropylene films at the Industrial Estate in Hattar, NWFP. This project, Tri-Pack Films Limited, commenced production in June 1995, with equity participation by Packages Limited, Mitsubishi Corporation, Altawfeek Company for Investment Funds, Saudi Arabia and general public. Packages Limited owns

    33% of Tri-Pack Films Limited’s equity.

    In July 1994, Coates Lorilleux Pakistan Limited, in which Packages Limited has 55% ownership, commenced production and sale of printing inks.

    In 1996, a joint venture agreement was signed with Printcare (Ceylon) Limited for the production of flexible packaging materials in Sri Lanka. This project Packages Lanka (Private) Limited commenced production in 1998. Packages Limited now owns 79% of this company.

    In 1999-2000 Packages Limited has successfully completed the expansion of the flexible packaging line by installation of new rotogravure printing machine and the expansion of the carton line by a new lemanic rotogravure inline printing and cutting creasing machine. In addition a new 8 colour flexo graphic printing machine was also installed in flexible packaging line in 2001.

    Packages Limited is also producing corrugated boxes from its plant in Karachi from 2002.

    In 2003, Packages Limited entered into an agreement with Vimpex of Austria to provide management and technical assistance to help in the operation, production optimization and capacity expansion of a paperboard mill in Syria. A team from Packages Limited is already there providing such services.

    Introduction

    003

  • Board of Directors Asadullah Khawaja Khalid Yacob Kirsten Rausing Pentikainen Markku Juha Rafi Iqbal Ahmed Samee-ul-Hasan Saulat Said Syed Hyder Ali Syed Wajid Ali (Chairman & Chief Executive) Tariq Iqbal Khan Mujeeb Rashid (Alternate to Kirsten Rausing)

    Advisor Syed Babar Ali

    Company Secretary Adi J. Cawasji

    Executive Committee Syed Wajid Ali - Chairman Rafi Iqbal Ahmed - Member Saulat Said - Member Khalid Yacob - Member Syed Hyder Ali - Member

    Audit Committee Tariq Iqbal Khan – Chairman (Non-Executive Director) Asadullah Khawaja – Member (Non-Executive Director) Saulat Said – Member (Director & General Manager)

    Adi J. Cawasji – Secretary

    Rating Agency: PACRA Company Rating: AA

    Auditors A.F. Ferguson & Co. Chartered Accountants

    Legal Advisors Hassan & Hassan – Lahore Orr, Dignam & Co. – Karachi

    Bankers ABN Amro Bank Askari Commercial Bank Limited Bank Al-Habib Limited Citibank N.A. Credit Agricole Indosuez The Global French Bank Deutsche Bank A.G. Faysal Bank Limited Habib Bank Limited Habib Bank A.G. Zurich Mashreq Bank Pakistan Limited Muslim Commercial Bank Limited Standard Chartered Bank Union Bank Limited United Bank Limited

    Head Office & Works Shahrah - e - Roomi P.O. Amer Sidhu Lahore - 54760, Pakistan PABX : 5811541-46, 5811191-94 Cable : PACKAGES LAHORE Fax : (042) 5811195, 5820147

    Karachi Factory Plot No. 6 & 6/1, Sector 28, Korangi Industrial Area, Karachi - 74900 Tel : (021) 5045320, 5045310 Fax : (021) 5045330

    Registered Office & Regional Sales Office Ist floor Hilal - e - Ahmer House Khayaban - e - Iqbal, Main Clifton Road Karachi - 75600 Pakistan PABX : 5833011, 5874047-49

    : 5831664, 5831618 Cable : PACKAGES KARACHI Fax : (021) 5860251

    Regional Sales Office 2nd Floor, G.D. Arcade 73-E, Fazal - ul - Haq Road, Blue Area Islamabad - 44000 Pakistan PABX : 2276765, 2276768, 2278632 Fax : (051) 2829411

    Zonal Sales Offices Room No. 117- 118 1st floor, Metro Plaza Qasim Road Multan Cantt. - 60000 Pakistan Tel. & Fax: (061) 587370

    1st Floor, Room No. 7 Glamour Centre Mission Road, Sukkur - 65200 Pakistan Tel. & Fax: (071) 26581

    2nd Floor, Sitara Tower, Bilal Chowk, Civil Lines, Faisalabad - 38000 Tel. & Fax: (041) 629417

    Shares Registrar Ferguson Associates (Pvt.) Limited State Life Building No. 1-A Off: I. I. Chundrigar Road Karachi - 74000

    Web Presence www.packages.com.pk

    Company Information

    005

  • Highlights

    6,293.22 1,036.91

    813.51 85.00

    3,228.66 6,154.28 4,651.91

    17.11 9.81

    29.28 25.20 16.44

    5,360.88 797.23 655.37 70.00

    2,819.21 5,950.48 4,250.57

    13.79 6.42

    23.81 23.25 13.60

    Invoiced sales-million rupees Profit before tax-million rupees Profit after tax-million rupees Cash dividend-percentage of paid up capital Shareholders’ equity-million rupees Total assets-million rupees Net assets employed Earnings per share-rupees Price-Earning Ratio Return on Capital Employed (%) Return on Shareholder’s Equity (%) Return on Invested Capital (%)

    86,641 66,870 5,850 2,955

    47,537,080 3,191

    551 1,115

    404

    409

    72,642 59,808 5,236 3,006

    47,537,080 3,084

    507 953 333 323

    Paper and board produced-tonnes Paper and board converted-tonnes Plastic all sorts converted-tonnes Number of shareholders Number of shares Number of employees Value added and its distribution

    Employees as remuneration-million rupees Government as taxes-million rupees Shareholders as dividends-million rupees Retained within the business-million rupees

    Year to December 31, 2003

    Year to December 31, 2002

    Sales (Rupees in Thousands)

    6 Months to Dec 31, 2000

    2001

    1,000

    1998-99

    2,000

    3,000

    4,000

    5,000

    6,000

    7,000

    1999-00 2002 2003

    6,293

    5,158

    4,166 3,926

    5,361

    2,238

    Break-up of Sales For the year ended December 31, 2003

    Consumer Products

    (12%)

    Corrugation (18%)

    Paper & Paperboard

    (14%)

    Pre-press (1%)

    Carton (25%)

    Flexible (30%)

    Earnings per Share-Rupees

    2

    4

    6

    8

    10

    12

    14

    16

    18 17.11

    0

    13.79

    8.94

    4.07

    9.479.33

    20011998-99 1999-00 2002 20036 Months to Dec 31, 2000

  • Dividends & Dividend Payout Ratio (Rupees in million)

    70.00

    60.00

    50.00

    40.00

    30.00

    20.00

    10.00 50

    100

    150

    200

    250

    300

    350

    Financial Trends (Rupees in million)

    6 Months to Dec 31, 2000

    20011998-99 1999-00 2002 2003

    4,043

    3,633

    4,079

    2,819

    4,094

    2,497

    4,044

    2,286

    4,240

    2,183

    4,507

    1,927

    684

    20.00

    40.00

    60.00

    80.00

    100.00

    120.00

    140.00

    160.00

    180.00 167.90

    88.50

    60.5066.0060.00 46.82

    Market Value Per Share Vs Break up Value Per Share-Rupees

    Fixed Assets- Cost Vs Fixed Capital Expenditure (Rupees in million)

    6 Months to Dec 31, 2000

    2001

    1,000

    1998-99

    2,000

    3,000

    4,000

    5,000

    6,000

    7,000

    8,000

    1999-00 2002 2003

    6,882 6,512

    5,774 5,323

    4,641

    5,361

    Profitability Indicators Percent-%

    6 Months to Dec 31, 2000

    20011998-99 1999-00 2002 2003

    460474500

    1,000

    1,500

    2,000

    2,500

    3,000

    3,500

    4,000

    4,500

    5,000

    6 Months to Dec 31, 2000

    20011998-99 1999-00 2002 2003

    41

    154

    600

    Revenue Utilization For the year ended December 31, 2003

    Employee Remuneration

    (8%) Other (7%)

    Tax

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