NIMIR Chemicals Annual Report 2016

Annual Report
2016
CONTENTS
02 Company Information
03 Vision and Mission Statement
04 Chairman Message
05 CEO Message
06 Accreditations
07 Core Business at a Glance
08 Our Performance
09 Wealth Generated and Distributed
10 Horizontal & Vertical Analysis
12 Key Operating & Financial DataFor Last Six Years
13 Directors’ Report
19 Statement of Compliance CCG
21 Financial Statements - Standalone
22 Review Report from Auditors
23 Auditors Report
24 Balance Sheet
30 Notes to the Financial Statements
55 Financial Statements - Consolidated
56 Review Report from Auditors
57 Auditors Report
58 Balance Sheet
64 Notes to the Financial Statements
95 Pattern of Shareholding
98 Statement Pursuant To Section 218
99 Notice of Annual General Meeting
Form of Proxy
Annual Report 2016

COMPANY INFORMATION
Board of Directors Legal Advisor

Mr. Abdul Jalil Jamil - Chairman Cornelius, Lane & Mufti
Mr. Zafar Mahmood - Chief Executive Officer Advocates & Solicitors
Mr. M. Saeed-uz-Zaman
Mr. Imran Afzal Shares’ Registrar
Mr. Aamir Jamil Corplink (Pvt.) Limited
Mr. Muhammad Sajid Wings Arcade, 1-K (Commercial),
Mr. Muhammad Yahya Khan Model Town, Lahore.
Mr. Mohsin Tariq Tel: +92 42 35916714 & 19
Mr. Saqib Raza Fax: +92 42 35869037
Mr. Khalid Siddiq Tirmizey www.corplink.com.pk
(Nominee -The Bank of Punjab)
Mr. Abdul Jaleel Shaikh Bankers
(Nominee - Pak Brunei Investment Company Limited) The Bank of Punjab
Habib Bank Limited
Working Directors Standard Chartered Bank (Pakistan) Limited
Mr. Zafar Mahmood Al Baraka Bank (Pakistan) Limited
Mr. Khalid Mumtaz Qazi Samba Bank Limited
Mr. Imran Afzal Pak Brunei Investment Company Limited
Mr. Umar Iqbal Soneri Bank Limited
Mr. Aamir Jamil Meezan Bank Limited
Askari Bank Limited
Chief Financial Officer National Bank of Pakistan
Mr. Aamir Jamil
Registered Office / Factory
Company Secretary 14.8 km., Sheikhupura-Faisalabad Road,
Mr. Muhammad Inam-ur-Rahim Bhikhi, District Sheikhupura, Pakistan.
Tel: +92 56 3883001-7
Audit Committee Fax: +92 56 3883010
Mr. Muhammad Sajid - Chairman Cell: +92 301-8221151, 301-8483950
Mr. M. Saeed-uz-Zaman - Member
Mr. Abdul Jaleel Shaikh - Member Lahore Office
12-B, New Muslim Town,
Human Resource & Remuneration Committee Lahore, Pakistan.
Mr. M. Saeed-uz-Zaman - Chairman Tel: +92 42 35926090-93
Mr. Muhammad Yahya Khan - Member Fax: +92 42 35926099
Mr. Zafar Mahmood - Member
Web Site
External Auditors www.nimir.com.pk
EY Ford Rhodes
Chartered Accountants
Nimir Industrial Chemicals Ltd. 2

OUR VISION & MISSION
Our Vision
To become an industry leader through a persistent commitment to customer
focus, technical innovation, managerial excellence, entrepreneurial spirit and
social responsibility.
Our Mission
To deliver unparalleled value to stakeholders and continually striving to exceed
customer expectations by developing innovative industrial chemical solutions
with special emphasis on workforce, health, safety, environment and contribution
to the national economic development.
3 Annual Report 2016

CHAIRMAN’S MESSAGE Pakistan’s economy has been growing at a modest, but
consistent rate, despite a major setback in agriculture and the
on going Zarb e Azb, the war against terrorism. It has managed
to maintain a momentum for the third consecutive year in a
row, with real GDP growing at 4.71% in FY 2016; which is the
highest in eight years. The key macro economic indicators, like
inflation, fiscal and current account balance also recorded an
improvement.
The external sector has become more stable on account of

robust growth in workers remittances, continued flows from IFIs
despite a sharp decline in global oil prices. The country’s Foreign
Exchange reserves have reached an all time high.
The private sector in Pakistan has taken maximum advantage

of the government’s initiative to resolve the energy crises by
providing gas and electricity to some crucial sectors of industry,
and help achieve macro economic stability. As a direct result
the growth in the manufacturing sector alone was 6.8%.
The country’s positive economic growth also impacted the

performance of the Company, resulting in 37% increase in sales
turnover. In keeping with its past record of excellence, Nimir
Industrial Chemicals (NICL) has exceeded previous records and
achieved Rupees five billion mark in sales. The acquisition of
controlling stake in Nimir Resins Limited (“NRL”) in January
2016 has proved to be a landmark decision for shareholders.
After taking over control in January 2016, NRL has already
turned into a viable venture.
It is the dedication of the management team and staff at NICL

which has continued to provide the guidance and leadership
which have led to its current status as one of the fastest
growing Companies in the Chemicals Sector.
I wish them all the success and Allah’s blessings to keep

meeting new challenges.
Abdul Jalil Jamil

Chairman

By the Grace of Almighty and the unwavering support of an CEO’S MESSAGE
excellent team, I am proud to announce another remarkable
year, ended June 30, 2016.
In keeping with the trend of its leadership role in the chemicals

sector, Nimir Industrial Chemical’s expansion, which was
commissioned in the FY 2015, was optimally utilized during the
FY 2016. This directly resulted in 37% growth in sales turnover.
Furthermore, the company made investments in various alternate

fuel-based energy solutions and, as a result, has become self-
reliant in its energy requirement. This has strengthened the
company’s ability of ensuring uninterrupted supplies to its
customers. The company also continued to improve its quality
assurance and compliance and obtained further credentials
during the year, confirming that Nimir’s systems comply with
international standards.
With our trend of investing in innovative and sustainable

technologies, an ambitious capital expenditure plan has been
approved to upgrade the plant and machinery to the latest
technology. This will result in further improvement in quality and
reduction in operation costs besides getting extra production
capacity.
Finally, we are delighted to report the Company’s acquisition of

the controlling stake in Nimir Resins Limited (formerly Descon
Chemicals) (“NRL”), through its wholly owned subsidiary Nimir
Holding Private Limited. NRL is a listed company engaged in
the manufacturing and sales of surface coating, unsaturated
polyesters, paper and textiles auxiliaries. In a very short span,
NRL has already been turned into a viable and dynamic venture.
NRL has posted net profit of Rs. 53 million in FY 2016 as against
net loss of Rs. 82 million in FY 2015.
Last but not least, I would like to thank all those who have made
this journey possible including my Management Team and Staff.
Zafar Mahmood
Chief Executive Officer

ACCREDITATIONS
Sedex is a not for profit membership organisation dedicated to driving

improvements in ethical and responsible business practices in global
supply chains.
The Roundtable on Sustainable Palm Oil (RSPO) was established in 2004
RSPO
Roundtable on Sustainable Palm Oi l
with the objective of promoting the growth and use of sustainable oil
palm products through credible global standards and engagement of
stakeholders.
Good Manufacturing Practices (GMP) in accordance with

ISO 22716 : 2007 - Guidelines for Cosmetics

CORE BUSINESS AT A GLANCE
Distilled Fatty • Soap noodles

Acid / Oleo • Stearic Acid
Chemicals • Glycerine
Soap Noodles
• Toilet soap
(Palm Bright)
• Tyre and Rubber

• Textile Softener
Stearic Acid • Metal Polishing
(Double & Triple Press) • Plastic
• Cosmetics
• Soap
• Pharmaceutical
• Alkyd Resin
Glycerine
• Tobacco
• Cosmetics
Caustic Soda
• Textile Sector
Sodium
Hypochlorite • Cleaning & Bleaching
• Steel
Hydrochloric Acid
• Third party toilet soap

Soap Bars
finishing and packing facility

OUR PERFORMANCE
2011 2012 2013 2014 2015 2016
Rupees in millions

Sales Turnover 2,431 2,678 3,002 3,332 3,663 5,011
Gross Profit 312 347 503 513 561 972
Pre-tax Profit 102 113 233 259 294 603

LT Liability 262 201 139 276 166 348
Equity 906 1,137 1,264 1,459 1,681 1,788

Number of Shares 111 111 111 111 111 111
Breakup value per share 8.2 10.3 11.4 13.2 15.2 16.2

WEALTH GENERATED AND DISTRIBUTED
FOR THE YEAR ENDED JUNE 2016
Rs (million) Percentage

Wealth Generated

Sales with sales Tax 5,864 100%
Other operating profit 1 0%
5,865 100%

Distribution of Wealth

Cost of materials & services 3,874 66.1%
Duties & taxes 1,194 20.4%
Employees 244 4.2%
Finance cost 115 2.0%
Dividend 221 3.8%
Wealth retained 218 3.7%
5,865 100.0%

HORIZONTAL & VERTICAL ANALYSIS
2012 2013 2014 2015 2016

Rupees in million
BALANCE SHEET
Non Current Assets 1,213 1,143 1,583 1,659 2,063

Current Assets 752 1,043 1,040 1,494 1,966
TOTAL ASSETS 1,965 2,185 2,623 3,153 4,029

Share Capital and Reserves 1,137 1,265 1,459 1,681 1,788
Non Current Liabilities 231 174 318 273 458
Current Liabilities 597 747 846 1,199 1,784
TOTAL EQUITY AND LIABILITIES 1,965 2,185 2,623 3,153 4,029

PROFIT & LOSS ACCOUNT
Sales- Net 2,678 3,002 3,332 3,663 5,011

Cost of Sales 2,330 2,499 2,819 3,103 4,039
Gross Profit 348 503 513 561 972
Distribution & Administration Cost 106 137 145 149 207
Operating Profit 242 366 368 412 765
Other Expenses/ (Income) 0 26 25 4 47
Finance Cost 114 97 81 106 91
Foreign Exchange Loss 14 11 3 8 24
Remission of subordinated loan – – – – –
Profit before Taxation 113 233 259 294 603
Taxation (119) 105 65 72 163
Other Comprehensive Loss 1 0 0 2
Net Comprehensive income for the Year 231 126 194 222 439

Horizontal Analysis Vertical Analysis
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
percentage change from last year percentage

13.00 (5.78) 38.52 4.79 24.35 61.72 52.30 60.36 52.61 51.19
6.68 38.61 (0.27) 43.69 31.62 38.28 47.70 39.64 47.39 48.81
10.49 11.21 20.01 20.21 27.79 100.00 100.00 100.00 100.00 100.00

25.55 11.19 15.37 15.19 6.38 57.88 57.87 55.63 53.31 44.37
(20.83) (24.72) 82.72 (13.88) 67.37 11.75 7.95 12.11 8.67 11.36
2.73 25.15 13.29 41.66 48.79 30.37 34.18 32.26 38.02 44.27
10.49 11.21 20.01 20.21 27.79 100.00 100.00 100.00 100.00 100.00

10.14 12.13 10.97 9.96 36.78 100.00 100.00 100.00 100.00 100.00
9.96 7.26 12.79 10.07 30.18 87.02 83.24 84.61 84.69 80.60
11.35 44.78 1.94 9.35 73.30 12.98 16.76 15.39 15.31 19.40
(4.41) 29.24 5.86 2.65 39.22 3.96 4.56 4.35 4.06 4.13
20.03 51.60 0.48 11.99 85.61 9.02 12.20 11.04 11.25 15.26
77.78 32,542.50 (5.29) (85.11) 1,170.86 0.00 0.87 0.74 0.10 0.93
17.95 (15.31) (16.82) 31.98 (14.87) 4.27 3.23 2.42 2.90 1.81
523.70 (24.59) (68.55) 131.24 210.31 0.53 0.36 0.10 0.21 0.48
(100.00) – – – – – – – – –
(86.11) 105.92 11.50 13.49 105.04 4.22 7.75 7.78 8.03 12.04
(554.50) (188.64) (38.48) 12.13 124.52 (4.43) 3.50 1.94 1.98 3.25
– – (76.83) (22.54) 782.01 – 0.04 0.01 0.01 0.03
(70.58) (45.40) 53.81 13.99 98.09 8.65 4.21 5.83 6.05 8.76

KEY OPERATING & FINANCIAL DATA FOR LAST SIX YEARS
2011 2012 2013 2014 2015 2016
Rupees in millions

Net Sales 2,431 2,678 3,002 3,332 3,663 5,011
Gross Profit 312 348 503 513 561 972
Operating Profit 201 242 366 368 412 765
Profit / (Loss) before tax 813 113 233 259 294 603
Net Profit / (Loss) for the year 787 231 126 194 222 439

Paid-up Capital 1,106 1,106 1,106 1,106 1,106 1,106
Net Worth 906 1,137 1,265 1,459 1,681 1,788
Long Term Loans, Leases 262 201 139 276 166 348
Current Liabilities 607 597 747 846 1,199 1,784
Current Assets 731 752 1,043 1,040 1,494 1,966
Total Assets 1,804 1,965 2,185 2,623 3,153 4,029

Breakup value per share - Rupees 8.2 10.3 11.4 13.2 15.2 16.20
Earnings per share - Rupees 7.1 2.1 1.1 1.8 2.0 3.98
Current Ratio 1.2 : 1 1.26 : 1 1.4 : 1 1.23 : 1 1.25 : 1 1.1 : 1
Lont Term Debt to Equity Ratio 22 : 78 15 : 85 10 : 90 16 : 84 9 : 91 16 : 84
Interest Coverage Ratio 2.05 1.99 3.40 4.22 3.77 7.67

DIRECTORS’ REPORT
The Board of Directors of the company is pleased to submit its economies of scale and can now compete with international
23rd Annual Report along with the audited financial statements competition. It has also started a process of upgrading its plant
for the year ended June 30, 2016. and machinery to the latest technologies available, in order
to provide high quality products and uninterrupted services to
The country’s positive economic growth has had an affirmative its customers. In view of these updates, the Company would
impact on the performance of the Company. The plant expansion, continue posting promising results in coming years, Insha Allah.
which was commissioned in the FY 2015, was optimally utilized
during the FY 2016. As a result, the Company recorded 37% Summary of Key operating and financial data of last six
growth in its sales turnover and crossed Rupees Five Billion financial years
mark. The operating results of the FY 2016 are summarized as
follows: Summary of key operating and financial data of last six years is
annexed.
2016 2015 Increase
PKR Million % age Outstanding statutory payments
Sales Revenue 5,011 3,663 37% All outstanding payments are of nominal and routine nature.
Gross Profit 972 561 73%
Pre-Tax Profit 603 294 105% Gratuity Scheme
Profit after Tax 441 222 99%
Earnings per share (Rs.) 3.98 2.01 99% The company operates a funded gratuity scheme for its
employee as referred in Note 9 to the accounts.
Owing to an increase in the sale turnover, the Company earned
gross profit of Rs. 972 million and net profit of Rs. 439 million Board of Directors
showing an increase of 73% and 99% respectively year on year.
The earing per share of the Company was almost doubled in the The election of directors was held on December 29, 2015
FY 2016. and following persons were elected as directors on the board
of directors by the shareholders in an extra ordinary general
In its quest to become self-reliant in energy, the Company meeting of the Company for a term of three years commencing
commissioned two more solid fuel based heating systems from December 30, 2015.
during FY 2016.
1. Mr. Abdul Jalil Jamil
During the year, the Company also acquired the controlling stake 2. Mr. Muhammad Saeed-uz-Zaman
in Nimir Resins Limited - formerly Descon Chemicals Limited 3. Mr. Imran Afzal
(NRL), through its wholly owned subsidiary Nimir Holding 4. Mr. Aamir Jamil
Private Limited (NHPL). NRL is a listed Company engaged in the 5. Mr. Muhammad Sajid
manufacturing and sales of surface coating, polyesters, paper 6. Mr. Muhammad Yahya Khan
chemicals and textile auxiliaries. After taking over the control in 7. Mr. Mohsin Tariq
January 2016, NRL has been turned into a viable venture. NRL 8. Mr. Saqib Raza
posted net profit of Rs. 53 million in the FY 2016 as against net
loss of Rs. 82 million in the FY 2015. While Abdul Jaleel Sheikh and Khalid Siddiq Tirmizey continued
as nominee directors of Pak Brunei Investment Company Limited
Future Outlook
and The Bank of Punjab respectively.
In face of continued market challenges, both in terms of
volatility in international commodity prices as well as technology The Board of directors in their meeting held on January 12, 2016
advancement, your Company has made much progress. has re-appointed Mr. Zafar Mahmood as chief executive officer
After the recent plant expansion, the Company has attained of the Company.

New Board comprises of Chief Executive Officer, two executive, Remuneration of CEO & Working Directors
three non-executive, four independent, and two nominee
directors. The board of director had approved the increase in
remunerations of Chief Executive Officer and Working Directors
The board also reconstituted the audit and human resources on the recommendations of Human Resource and Remuneration
and remuneration committees as follows in their meeting held Committee. The discloser of the same is attached under
on January 12, 2016. Statement Pursuant to Section 218 of the Companies Ordinance,
1984.
Audit Committee:
Corporate Governance
1. Muhammad Sajid (Independent) Chairman
2. M. Saeed-uz-Zaman (Non Executive) Member As required under Code of Corporate Governance incorporated
3. Abdul Jaleel Shaikh (Non Executive) Member in the Listing Rules of the Stock Exchanges in the country, the
boards of Directors are pleased to state as follows:
Human Resources and Remuneration Committee:
• The Financial statements, prepared by the management of
1. M. Saeed-uz-Zaman (Non Executive) Chairman the Company, present fairly its state of affairs, the results
2. Muhammad Yahya Khan (Non Executive) Member of its operations, cash flows and changes in equity.
3. Zafar Mahmood (Executive) Member • Proper books of accounts of the Company have been
maintained.
During the year 2016, Six (6) board, Four (4) Audit Committee • Appropriate accounting policies have been consistently
and One (1) Remuneration Committee meetings were held. applied in preparation of the financial statements and
Attendance by each director was as follow: accounting estimates are based on reasonable and
prudent judgment.
Name of Board of Audit HR & R • International Financial Reporting Standards (IFRS),
Director Directors Committee Committee as applicable in Pakistan, have been followed in the
preparation of financial statements.
Abdul Jalil Jamil 5 1 • The system of internal control is sound in design and has
Zafar Mahmood 6 1 been effectively implemented and monitored.
• There is no significant doubt upon the company ability to
Khalid Mumtaz Qazi 3
continue as a going concern.
Umar Iqbal 3
• There has been no material departure from the best
Imran Afzal 3 practices of the corporate governance, as detailed in the
Aamir Jamil 3 listing regulations.
Sh. Amar Hameed 2 • Key operating and financial data for the last 6 years is
annexed.
Muhammad Saeed-uz-Zaman 6 4 1
• Outstanding taxes and levis are given in the notes to the
Muhammad Sarwar Khawaja 3 2 financial statements
Muhammad Yahya Khan 5
Muhammad Sajid 3 2 The management of the Company is committed to good
Abdul Jaleel Shaikh 6 4 corporate governance, and appropriate steps are taken to
comply with best practices.
Khalid Siddiq Tirmizey 2
Corporate Social Responsibilities
Leaves of absence were granted to directors who could not
attend some of the meetings.
The Company recognizes its social responsibilities as a key

member of the community. It is committed to contribute its Acknowledgment
resources for the better environment with an unprejudiced
approach. Its safety, health and environmental (SHE) policies We are thankful to our valued stakeholders including customers,
are geared towards unbiased betterment of employees and banks, suppliers, contractors and shareholders, for their excellent
community. support and confidence. We also thank to our employees for
their focused dedication and hard work throughout this period.
The Company ensures environment friendly operations, products
and services and promotes environmental awareness among its
employee and the community. It inducts employees from the
surrounding community and offer internships and apprenticeship
opportunities to technical institutes. It also encourages visits by
the students of different educational institutions and support
needy children of the employees for studies to promote
education in the country.
For and on behalf of the Board
External Auditors
The present auditors M/s Ernst & Young Ford Rhodes Sidat
Hyder and Company, Chartered Accountant, retiring this year,
being eligible, have offered themselves for re-appointment. The ___________________
audit committee has recommended the re-appointment of M/s September 29, 2016 Zafar Mahmood
Ernst & Young Ford Rhodes Sidat Hyder and Company, Chartered Sheikhupura Chief Executive Officer
Accountant as external auditor of the Company for the year
ending June 30, 2017.
Dividend / Bonus Shares
The Board has recommended a zero final cash dividend for the
year ended June 30, 2016. The Board had earlier declared and
paid interim cash dividends totaling Rs. 2 per share (i.e. 20%).
The total cash dividend for the year remained Rs. 2 per share
(i.e. 20%).
Pattern of Shareholding
A pattern of shareholding of the Company is annexed. There was

no trading in the shares of the Company by the Directors, Chief
Executive, Chief Financial Officer, Company Secretary, Company
Executive and their spouses and minor children during the year
except those who are mentioned in the annexed statement
required under code of Code of Corporate Governance (CCG)
Necessary returns in this respect filed with the regulatory

authorities besides informing the Board and the stock exchanges
of the said transactions as required under the Code of Corporate
Governance.

STATEMENT OF COMPLIANCE WITH THE
CODE OF CORPORATE GOVERNANCE FOR THE YEAR ENDED JUNE 30, 2016
This statement is being presented to comply with the Code of Company. A complete record of particulars of significant
Corporate Governance 2012(CCG) contained in contained in policies along with the dates on which they were approved
Regulation No. 5.19.23 of Listing Regulations of the Rule Book of or amended has been maintained.
Pakistan Stock Exchange Limited for the purpose of establishing
a framework of good governance, whereby a listed Company 7. All the powers of the board have been duly exercised and
is managed in compliance with the best practices of corporate decisions on material transactions, including appointment
governance. and determination of remuneration and terms and
conditions of employment of the Chief Executive Officer
Nimir Industrial Chemicals Limited (the “Company”) has applied (CEO), other executive and non-executive directors, have
the principles contained in the Code of Corporate Governance been taken by the board/shareholders.
2012 in the following manner:
8. The meetings of the board were presided over by the
Chairman and the board met at least once in every quarter.
1. The Company encourages representation of independent
Written notices of the board meetings, along with agenda
directors, non-executive directors and directors
and working papers, were circulated at least seven days
representing minority interests on its board of directors. At
before the meetings. The minutes of the meetings were
present the board includes:
appropriately recorded and circulated.
The independent directors meets the criteria of

9. No appointment of CFO, Company Secretary has been
independence under clause 5.19.1 (b) of the CCG.
made during the year, Head of Internal Audit has been
appointed made during the year.
2. The directors have confirmed that none of them is serving
as a director on more than seven listed companies, 10. During the year, new board is formed after the election
including this Company (excluding the listed subsidiaries of of directors in December 2015. During the year SECP
listed holding companies where applicable). has extended the date by June 2018 to complete with
“Directors Training Program” in compliance with clause (xi)
3. All the resident directors of the Company are registered as of the CCG.
taxpayers and none of them has defaulted in payment of
any loan to a banking company, a DFI or an NBFI or, being 11. The directors’ report for this year has been prepared in
a member of a stock exchange, has been declared as a compliance with the requirements of the CCG and fully
defaulter by that stock exchange. describes the salient matters required to be disclosed.
4. No casual vacancy occurred during the year. 12. The financial statements of the Company were duly
endorsed by CEO and CFO before approval of the board.
5. The Company has prepared a “Code of Conduct” and
has ensured that appropriate steps have been taken to 13. The directors, CEO and executives do not hold any interest
disseminate it throughout the Company along with its in the shares of the Company other than that disclosed in
supporting policies and procedures. the pattern of shareholding.
6. The board has developed a vision/mission statement, 14. The Company has complied with all the corporate and
overall corporate strategy and significant policies of the financial reporting requirements of the CCG.

15. The Board has formed an Audit Committee. It comprises 22. Material/price sensitive information has been disseminated
of 3 (Three) members, of whom1 (One) is independent among all market participants at once through stock
director, 1 (One) is non-executive director and 1 (One) is exchange(s).
nominee director. The chairman of the committee is an
independent director. 23. We confirm that other material principles enshrined in the
16. The meetings of the audit committee were held at least CCG have been complied.
once every quarter prior to approval of interim and final
results of the Company and as required by the CCG. The
terms of reference of the committee have been formed and
advised to the committee for compliance.
17. The Board has formed a Human Resource and Remuneration For Nimir Industrial Chemicals Limited
Committee. It comprises of 3 (Three) members, of whom 2
(Two) are non-executive directors and 1 (One) is executive
director. The chairman of the committee is a non-executive
director. Lahore, Zafar Mahmood
18. The Board has set up an effective internal audit function, September 29, 2016 Chief Executive Officer
which is considered suitably qualified and experienced
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.
21. The “Closed Period”, prior to the announcement of interim/

final results, and business decisions, which may materially
affect the market price of Company’s securities, was
determined and intimated to directors, employees and
stock exchange(s).
FINANCIAL STATEMENTS - STANDALONE
FOR THE YEAR ENDED JUNE 30, 2016

REVIEW REPORT TO THE MEMBERS ON STATEMENT
OF COMPLIANCE WITH BEST PRACTICES OF CCG
We have reviewed the Statement of Compliance with the best Based on our review, nothing has come to our attention, which
practices (the statement) contained in the Code of Corporate causes us to believe that the Statement does not appropriately
Governance prepared by the Board of Directors of Nimir reflect the status of the Company’s compliance, in all material
Industrial Chemicals Limited (the Company) for the year ended respects, with the best practices contained in the Code, for the
June 30, 2016 to comply with the regulation 5.19 of the rule year ended June 30 2016.
book of Pakistan Stock Exchange (formerly Karachi Stock
Exchange, in which the Lahore and Islamabad Stock Exchanges
have merged), where the Company is listed.
The responsibility for compliance with the Code is that of the

Board of Directors of the Company. Our responsibility is to
review, to the extent where such compliance can be objectively _________________________________
verified, whether the Statement reflects the status of the EY Ford Rhodes
Company’s compliance with the provisions of the Code and Chartered Accountants
report if it does not. A review is limited primarily to inquiries Audit Engagement Partner : Naseem Akbar
of the Company’s personnel and review of various documents
prepared by the Company to comply with the Code.
Lahore
As part of our audit of financial statements, we are required to September 29, 2016
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’s
statement on internal control covers all risks and controls, or to
form an opinion on the effectiveness of such internal controls,
the Company’s corporate governance procedures and risks.
The Code requires the Company to place before the Audit

Committee, and upon recommendation of the Audit 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 price and recording proper
justification for using such alternate pricing mechanism. We are
only required and have ensured compliance of this requirement
to the extent of approval of related party transactions by the
Board of Directors upon recommendation of Audit Committee.
We have not carried out any procedures to determine whether
the related party transactions were undertaken at arm’s length
price or not.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS
We have audited the annexed balance sheet of Nimir Industrial ii. the expenditure incurred during the year was for the
Chemicals Limited (the Company) as at 30 June 2016 and the purpose of the Company’s business; and
related profit and loss account, statement of comprehensive
income, cash flow statement and statement of changes in equity iii. the business conducted, investments made and the
together with the notes forming part thereof, for the year then expenditure incurred during the year were in accordance
ended and we state that we have obtained all the information with the objects of the Company;
and explanations which, to the best of our knowledge and belief,
were necessary for the purposes of our audit. (c) in our opinion and to the best of our information and
according to the explanations given to us, the balance
It is the responsibility of the Company’s management to sheet, profit and loss account, statement of comprehensive
establish and maintain a system of internal control, and prepare income, cash flow statement and statement of changes
and present the above said statements in conformity with the in equity together with the notes forming part thereof
approved accounting standards and the requirements of the conform with approved accounting standards as applicable
Companies Ordinance, 1984. Our responsibility is to express an in Pakistan, and, give the information required by the
opinion on these statements based on our audit. Companies Ordinance, 1984, in the manner so required
and respectively give a true and fair view of the state of
We conducted our audit in accordance with the auditing the Company’s affairs as at 30 June 2016 and of the profit,
standards as applicable in Pakistan. These standards require comprehensive income, its cash flows and changes in
that we plan and perform the audit to obtain reasonable equity for the year then ended; and
assurance about whether the above said statements are free
of any material misstatement. An audit includes examining on (d) in our opinion, Zakat deductible at source under the Zakat
a test basis, evidence supporting the amounts and disclosures and Ushr Ordinance, 1980 (XVIII of 1980), was deducted
in the above said statements. An audit also includes assessing by the Company and deposited in the Central Zakat Fund
the accounting policies and significant estimates made by established under section 7 of the Ordinance.
management, as well as, evaluating the overall presentation of
the above said statements. We believe that our audit provides
a reasonable basis for our opinion and, after due verification, we
report that:
______________________
(a) in our opinion, proper books of account have been kept by EY Ford Rhodes
the Company as required by the Companies Ordinance, Chartered Accountants
1984; Audit Engagement Partner : Naseem Akbar
(b) in our opinion: Lahore

September 29, 2016
i. the balance sheet and profit and loss account together with
the notes thereon have been drawn up in conformity with
the Companies Ordinance, 1984, and are in agreement
with the books of accounts and are further in accordance
with accounting policies consistently applied, except for
changes referred to in note 2.2, with which we concur;
BALANCE SHEET
Note 2016 2015
(Rupees) (Rupees)

EQUITY AND LIABILITIES

Share Capital and Reserves

Authorized share capital
145,000,000 (2015: 145,000,000) Ordinary shares of Rs.10 each 1,450,000,000 1,450,000,000

Issued, subscribed and paid up capital 6 1,105,905,460 1,105,905,460
Unappropriated profit 681,955,668 574,711,100
1,787,861,128 1,680,616,560

NON CURRENT LIABILITIES

Long term loans 7 243,750,000 93,750,000
Liabilities against assets subject to finance lease 8 104,377,393 72,005,702
Net defined benefit liability - unfunded gratuity 9 – 48,493,178
Deferred tax liability 10 109,560,554 59,207,398
457,687,947 273,456,278

CURRENT LIABILITIES

Trade and other payables 11 327,843,339 213,202,119
Net defined benefit liability - funded gratuity 9 49,805,868 –
Mark up accrued 20,166,754 11,989,038
Unclaimed dividend 11,587,280 687,266
Short term borrowings 12 1,132,627,994 850,596,045
Current maturity of long term loans 7 100,000,000 102,833,310
Current maturity of liabilities against
assets subject to finance lease 8 28,701,586 17,937,506
Provision for taxation 112,859,752 1,657,258
1,783,592,573 1,198,902,542

CONTINGENCIES AND COMMITMENTS 13 – –

TOTAL EQUITY AND LIABILITIES 4,029,141,648 3,152,975,380
The annexed notes from 1 to 44 form an integral part of these financial statements.
CHIEF EXECUTIVE OFFICER

AS AT JUNE 30, 2016
Note 2016 2015
(Rupees) (Rupees)

ASSETS

NON CURRENT ASSETS

Property, plant and equipment 14 1,775,453,373 1,628,872,220
Intangible 15 561,201 995,445
Investment in subsidiary 16 20,000,000 –
Loan to subsidiary 17 235,500,000 –
Long term deposits 18 31,169,128 28,953,928
2,062,683,702 1,658,821,593

CURRENT ASSETS

Stores, spares and loose tools 19 130,828,188 71,830,717
Stock in trade 20 637,995,522 758,413,596
Trade debts 21 820,652,695 482,312,500
Loans and advances 22 64,384,238 34,881,194
Trade deposits and short term prepayments 23 7,736,013 8,910,026
Other receivables 24 16,491,350 11,716,515
Tax refunds due from government 25 226,693,190 111,971,081
Cash and bank balances 26 61,676,750 14,118,158
1,966,457,946 1,494,153,787

TOTAL ASSETS 4,029,141,648 3,152,975,380
DIRECTOR
PROFIT AND LOSS ACCOUNT
Note 2016 2015
(Rupees) (Rupees)

Sales - net 27 5,011,268,584 3,663,499,323

Cost of sales 28 (4,039,193,383) (3,102,622,031)

Gross profit 972,075,201 560,877,292

Distribution costs 29 (104,893,010) (76,565,413)

Administrative expenses 30 (102,295,839) (72,252,354)

Other expenses 31 (47,610,703) (23,322,981)

Other income 32 818,657 19,640,754
Foreign exchange loss 33 (24,139,486) (7,778,704)
Operating profit 693,954,820 400,598,594
Finance cost 34 (90,519,682) (106,330,524)

Profit before taxation 603,435,138 294,268,070

Taxation 35 (162,751,481) (72,488,860)

Profit after taxation 440,683,657 221,779,210

Earnings per share - basic and diluted 36 3.98 2.01


CHIEF EXECUTIVE OFFICER DIRECTOR

STATEMENT OF COMPREHENSIVE INCOME
Notes 2016 2015
(Rupees) (Rupees)


Items not to be reclassified to profit or loss in subsequent periods:
Re-measurement losses on defined benefit plan - net of tax 9 (1,667,451) (189,665)

Total comprehensive income for the year 439,016,206 221,589,545
STATEMENT OF CHANGES IN EQUITY

Issued, subscribed
and paid up Unappropriated
share capital profit Total
(Rupees) (Rupees) (Rupees)
Balance as on July 1, 2014 1,105,905,460 353,121,555 1,459,027,015

Total comprehensive income for the year – 221,589,545 221,589,545

Balance as on June 30, 2015 1,105,905,460 574,711,100 1,680,616,560

Final dividend for 2015 @ Rs. 1 per share – (110,590,546) (110,590,546)
Interim dividend for 2016 @ Rs. 1 per share – (110,590,546) (110,590,546)
Interim dividend for 2016 @ Rs. 1 per share – (110,590,546) (110,590,546)

Total comprehensive income for the year – 439,016,206 439,016,206

Balance as on June 30, 2016 1,105,905,460 681,955,668 1,787,861,128

CASH FLOW STATEMENT
Note 2016 2015
(Rupees) (Rupees)
CASH FLOWS FROM OPERATING ACTIVITIES

Net profit before taxation 603,435,138 294,268,070

Adjustment for:

Depreciation 137,902,877 118,732,028
Amortization 434,244 413,017
Finance cost 90,519,682 106,330,524
Provision against stock in trade 86,627,626 –
Provision for gratuity 9,754,477 9,860,682
Reversal of provision against others – (13,598,057)
Gain on disposal of property, plant and equipment (186,480) (1,968,178)
Exchange loss 897,926 –
WPPF provision 32,507,240 15,803,946
WWF provision 14,202,429 6,005,499
372,660,021 241,579,461

Operating profit before working capital changes 976,095,159 535,847,531

(Increase) in current assets

Stores, spares and loose tools (58,997,471) (17,383,042)
Stock in trade 33,790,448 (240,744,731)
Trade debts (338,340,195) (242,018,343)
Loans and advances (29,503,044) (7,525,608)
Trade deposits and short term prepayments 1,174,013 (767,218)
Other receivables (4,774,835) 345,373
Tax refunds due from government (8,441,708) 42,083,354
(405,092,792) (466,010,215)
Increase / (decrease) in current liabilities
Trade and other payables 82,837,571 (32,153,030)
(322,255,221) (498,163,245)

Cash generated from operations 653,839,938 37,684,286

Contribution to gratuity fund 9.6 (9,860,682) –
Gratuity paid 9.4 (997,700) (2,751,880)
Finance cost paid (76,077,966) (107,098,533)
Tax paid (106,727,088) (50,231,427)
Long term deposits (2,215,200) (3,024,312)
WPPF Paid (15,803,946) (14,628,751)
(211,682,582) (177,734,903)

Net cash generated / (utilized) from operating activities - Balance carried forward 442,157,356 (140,050,617)

2016 2015
(Rupees) (Rupees)
Balance brought forward 442,157,356 (140,050,617)
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (284,896,282) (220,133,346)
Sale proceeds from disposal of property, plant and equipment 598,732 3,941,558
Acquisition of subsidiary (20,000,000) –
Loan to subsidiary (235,500,000) –

Net cash used in investing activities (539,797,550) (216,191,788)

(97,640,194) (356,242,405)
CASH FLOWS FROM FINANCING ACTIVITIES

Long term loan obtained 250,000,000 –
Long term loan repaid (102,833,310) (84,083,340)
Dividend paid (320,871,624) –
Repayment of liabilities against assets subject to finance lease (27,919,111) (16,896,571)
New leases acquired during the year 64,790,882 10,655,710
Short term borrowings 282,031,949 398,497,839

Net cash generated from financing activities 145,198,786 308,173,638

Net increase / (decrease) in cash and cash equivalents 47,558,592 (48,068,767)

Cash and cash equivalents at the beginning of the year 14,118,158 62,186,925

Cash and cash equivalents at the end of the year 61,676,750 14,118,158


NOTES TO THE FINANCIAL STATEMENTS
1 THE COMPANY AND ITS OPERATIONS
Nimir Industrial Chemicals Limited (“The Company”) was incorporated in Pakistan as a Public Limited Company and its shares
are listed on Pakistan Stock Exchange (formerly Karachi Stock Exchange and Lahore Stock Exchange). The Company is a
subsidiary of Nimir Resources (Private) Limited which holds 56.67% of the total shares of the Company. The registered office
of the Company is situated at 14.8 km, Sheikhupura-Faisalabad Road, Mouza Bhikki, District Sheikhupura, Pakistan. The
Company is engaged in the manufacturing and sale of industrial chemical products.
1.1 Nimir Industrial Chemicals Limited is part of Nimir Group which consist of:
Holding Company

Nimir Resources (Private) Limited

Subsidiary Companies %age of holding

Nimir Holdings (Private) Limited 100%
Nimir Management (Private) Limited 51%
Nimir Resins Limited (formerly Descon Chemicals Limited) 37.44%
The registered office of Nimir Holdings (Private) Limited (NHPL) and Nimir Management (Private) Limited (NMPL) is
Nimir House, 12 B, New Muslim Town, Lahore, Pakistan. NHPL was formed for the purpose of investment in Nimir
Resins Limited (formerly Descon Chemicals Limited).
Nimir Resins Limited (formerly Descon Chemicals Limited) is a listed company engaged in the manufacturing of surface
coating resins, polyesters, optical brightener and textile auxiliaries.
2 STATEMENT OF COMPLIANCE
2.1 These financial statements have been prepared in accordance with approved accounting standards as applicable in
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRSs) issued
by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, provisions of
and directives issued under the Companies Ordinance, 1984. Wherever, the requirement of the Companies Ordinance,
1984 or directive issued by the Securities and Exchange Commission of Pakistan (SECP) differ with the requirements
of these standards, the requirements of Companies Ordinance, 1984 or the requirements of the said directives take
precedence.
2.2 Standards, interpretations and amendments to published approved accounting standards effective in 2016
The accounting policies adopted in the preparation of these financial statements are consistent with those of the
previous financial year except as describe below:
New / Revised Standards and Amendments
The Company has adopted the following accounting standard and the amendments which became effective for the
current year:
IFRS 10 – Consolidated Financial Statements

IFRS 11 – Joint Arrangements
IFRS 12 – Disclosure of Interests in Other Entities
IFRS 13 – Fair Value Measurement

The adoption of the above accounting standards did not have any effect on the financial statements.
3 BASIS OF PREPARATION

3.1 BASIS OF MEASUREMENT
These financial statements have been prepared under the historical cost convention except that certain employee
benefits are recognized on the basis mentioned in note 5.13
3.2 PRESENTATION CURRENCY
These financial statements are presented in Pak Rupee, which is the Company’s functional currency.
4 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires
the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of
applying the Company’s accounting policies. Estimates and judgments are continually evaluated and are based on the
historical experience, including expectations of future events that are believed to be reasonable under the circumstances.
These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision
and future periods if the revision affects both current and future periods. 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:
4.1 Provision for doubtful receivables
A provision for impairment of trade and other receivables is established when there is objective evidence that the
Company will not be able to collect all amounts due according to the original terms of receivables. These estimates
and underlying assumptions are reviewed on an ongoing basis.
4.2 Useful life and residual values of property, plant and equipment
Estimates with respect to residual values, depreciable lives and pattern of flow of economic benefits are based on
the analysis of the management of the Company. Further, the Company reviews the value of the assets for possible
impairments on an annual basis. Any change in the estimates in the future might affect the carrying amount of respective
item of property, plant and equipment, with a corresponding effect on the depreciation charge and impairment.
Other areas where estimates and judgments involved are disclosed in respective notes to the financial statements.
4.3 Provision for taxation
In making the estimates for income tax payable, the Company takes into account the applicable laws and the decisions
by appellate authorities on certain issues in the past.
A deferred tax liability is recognized for all taxable temporary differences and deferred tax assets are recognized for
deductible temporary differences and unused tax losses to the extent that it is probable that taxable profits will be
available against which the losses can be utilized. Significant management judgment is required to determine the
amount of deferred tax liabilities and assets that can be recognized, based upon the likely timing and level of future
taxable profits together with future tax planning strategies.
5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied are consistent with prior year except as stated otherwise.
5.1 Property, plant and equipment
Owned assets
Property, plant and equipment are stated at cost less accumulated depreciation and impairment, if any except land
which stated at cost. Cost of property, plant and equipment consists of historical cost and directly attributable cost of
bringing the assets to their present location and condition.
Depreciation is calculated using the straight line method at rates disclosed in note 14.1 which are considered appropriate
to write off the cost of the assets over their useful lives.
Depreciation on additions is charged from the month in which an asset is acquired or capitalized while no depreciation
is charged for the month in which the asset is disposed off.
The carrying amounts of the Company’s assets are reviewed at each balance sheet date to determine whether there
is any indication of impairment. If any 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 values exceed the respective
recoverable amount, assets are written down to their recoverable amounts and the resulting impairment is recognized
in the income currently. The recoverable amount is the higher of an asset’s fair value less cost to sell and value in use.
Where an impairment loss is recognized, the depreciation charge is adjusted for 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 recognized as separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of
the item can be measured reliably. All other repair and maintenance costs are charged to income during the period in
which they are incurred.
The gain or loss on disposal or retirement of an asset represents the difference between the sale proceeds and the
carrying amount of the asset and is recognized as an income or expense in the period it relates.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal.
Capital Work In Progress
These are stated at cost less impairment loss, if any, including capitalization of borrowing costs. It consists of
expenditures incurred and advances made in respect of fixed assets in the course of their construction and installation.
Leased Asset
Leases where the Company has substantially all the risks and rewards of ownership are classified as finance leases.
At inception, finance leases are capitalized at the lower of present value of minimum lease payments under the lease
agreements and the fair value of the assets.
The related rental obligations, net of finance cost, are included in liabilities against assets subject to finance lease as
referred to in note 8. The liabilities are classified as current and non-current depending upon the timing of the payment.

Each lease payment is allocated between the liability and finance cost 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. The financial charges are
calculated at the interest rates implicit in the lease and are charged to the profit and loss account.
Assets held under finance lease are stated at cost less accumulated depreciation and impairment loss, if any, at the
rates and basis applicable to the Company owned assets.
5.2 Intangibles
Intangibles acquired separately are measured on initial recognition at cost. Following initial recognition, intangibles
are carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of
intangibles are measured to be finite. Intangibles with finite lives are amortized over the useful life and assessed for
impairment whenever there is an indication that the asset may be impaired. The amortization period and amortization
method for an intangibles with a finite life is reviewed at each financial period end. The amortization expense is
recognized in profit or loss in the expense category consistent with the function of the intangibles.
Amortization on additions is charged from the month in which an asset is acquired or capitalized while no amortization
is charged for the month in which the asset is disposed of.
5.3 Stock in trade
Stock in trade, stores, spares and loose tools are valued at lower of cost or net realizable value except those in transit,
which are valued at invoice value including other charges, if any, incurred thereon. Basis of determining cost is as
follows:
Raw and packing material - weighted average cost

Material in transit - actual cost
Work in process - cost
Finished goods - weighted average cost
Stores, spares and loose tools - weighted average cost
Items considered obsolete are carried at nil value.
Provision for obsolete and slow moving inventory is based on management estimates.
Net realizable value is determined on the basis of estimated selling price of the product in the ordinary course of
business less costs of completion and costs necessary to be incurred in order to make the sale.
5.4 Trade debts
Trade debts are carried at invoice amount on transaction date less any estimate for doubtful debts. Known bad debts
are written off as and when identified.
5.5 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 of cheques in hand, cash and bank
balances.
5.6 Financial instruments
All the financial assets and financial liabilities are recognized at the time when the Company becomes a party to the
contractual provisions of the instruments. The Company derecognizes a financial asset or a portion of financial asset
when, and only when, the Company loses control of the contractual rights that comprise the financial asset or portion
of financial asset. While a financial liability or part of financial liability is derecognized from the balance sheet when, and
only when, it is extinguished, i.e. when the obligation specified in the contract is discharged, cancelled or expires.
All financial assets and financial liabilities are initially measured at cost, which is the fair value of the consideration given
and received respectively. These financial assets and liabilities are subsequently measured at fair value, amortised cost
or cost, as the case may be.
Financial assets are investments, trade deposits, trade debts, loans and advances, other receivables, cash and bank
balances. These are stated at their nominal values as reduced by the appropriate allowances for estimating irrecoverable
amount.
Financial liabilities are classified according to the substance of the contractual arrangements entered into. Significant
financial liabilities are long term loans, short term running finance utilized under mark-up arrangements, creditors,
liabilities against assets subject to finance lease, accrued and other liabilities. Mark-up bearing finances are recorded
at the gross proceeds received. Other liabilities are stated at their nominal value.
5.7 Offsetting of financial assets and financial liabilities
A financial asset and financial liability is offset and the net amount is reported in the balance sheet if the Company has
a legal enforceable right to set off the recognized amounts and intends either to settle on net basis or to realize the
assets and settle the liabilities simultaneously.

5.8 Impairment of financial assets
The Company assesses at each balance sheet date whether there is any objective evidence that a financial asset or
a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and
only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial
recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows
of the financial asset or the group of financial assets that can be reliably estimated.
Evidence of the impairment may include indicators that the debtor or a group of debtors is experiencing significant
financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy
or other financial reorganization and where observable data indicates that there is a measurable decrease in the
estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
The amount of loss is measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of
the asset is reduced and the amount of the loss is recognized in the profit and loss account. If, in a subsequent period,
the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after
the impairment was recognized, the reversal of the previously recognized impairment loss is recognized in profit and
loss account.
5.9 Trade and other payables
Creditors relating to trade and other payables are carried at cost which is the fair value of the consideration to be paid
in the future for goods and services received, whether or not billed to the Company.
5.10 Provisions
A provision is recognized in the balance sheet when the Company has a legal or constructive obligation as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of obligation.
5.11 Taxation
Current
Provision for the current tax is based on the taxable income for the year determined in accordance with the provisions
of the Income Tax Ordinance, 2001. 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 after taking into account tax credits, rebates and exemptions, if
any. 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 provided in full using the balance sheet liability method on all temporary differences arising at the
balance sheet date, between the tax bases of the assets and liabilities and their carrying values. Deferred tax assets
are recognized for all deductible temporary differences to the extent that it is probable that future taxable profits will
be available against which the temporary differences can be utilized.
The carrying amounts of all deferred tax assets are reviewed at each balance sheet date and reduced to the extent, if
it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax assets to
be utilized.
Deferred tax is calculated at the rates that are expected to apply to the year when the differences reverse based on
tax rates that have been enacted or substantially enacted by the balance sheet date.

5.12 Revenue recognition
Sale of goods - local
Revenue is recognized when the significant risks and rewards of ownership of the goods is transferred to the buyer at
the time of issuance of delivery challan.
Sale of goods - export
Revenue from export of goods is recognized at the time of issuance of bill of lading.
Profit on bank deposit
Profit earned on saving and deposit accounts is accrued on time proportion basis by reference to the principal
outstanding at the applicable rate of return.
5.13 Staff retirement benefits

Defined benefit plan
During the year, the Company formed an approved funded defined benefit gratuity plan for all of its permanent
employees. Under this plan, gratuity is paid to the retiring employees on the basis of their last drawn gross salary for
each completed year of service.
Experience adjustments are recognized in other comprehensive income when they occur. Amounts recorded in profit
& loss are limited to current and past service cost, gains or losses on settlements, and net interest income (expense).
All other changes in net defined benefit liability are recognized in other comprehensive income with no subsequent
recycling to profit and loss account.
The distinction between short term and other long term employee benefits is based on the expected timing of settlement
rather than the employees’ entitlement to benefits.
5.14 Foreign currency translation
Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transactions. Monetary
assets and liabilities in foreign currencies are translated into Pak rupees at the rate of exchange prevailing at the
balance sheet date.
Profits or losses arising on translation are recognized in the profit and loss account.
5.15 Borrowing costs
Borrowing costs are recognized as an expense in the period in which these are incurred except to the extent of
borrowing costs that are 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. Such borrowing costs
are capitalized as part of the cost of the qualifying asset.
5.16 Pricing for related party transactions
All transactions with related parties and associated undertakings are entered into arm’s length determined in accordance
with comparable uncontrolled price method.
Parties are said to be related if they are able to influence the operating and financial decisions of the Company and vice
versa.
5.17 Operating segments
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 that makes strategic decision.
The management has determined that the Company has a single reportable segment, as Board of Directors views the
Company’s operations as one reportable segment.
5.18 STANDARDS ISSUED BUT NOT YET EFFECTIVE
The following standards, amendments and interpretations with respect to the approved accounting standards
as applicable in Pakistan would be effective from the dates mentioned below against the respective standard or
interpretation:
Effective date
(annual periods
beginning
Standard or Interpretation on or after)

IFRS 2 Share-based Payments – Classification and Measurement of Share-based
Payments Transactions (Amendments) January 1, 2018
IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities
and IAS 28 Investment in Associates – Investment Entities:
Applying the Consolidation Exception (Amendment) January 1, 2016
IFRS 10 Consolidated Financial Statements and IAS 28 Investment in Associates and
Joint Ventures - Sale or Contribution of Assets between an Investor and
its Associate or Joint Venture (Amendment) Not yet finalized
IFRS 11 Joint Arrangements - Accounting for Acquisition of Interest in Joint Operation
(Amendment) January 1, 2016
IAS 1 Presentation of Financial Statements - Disclosure Initiative (Amendment) January 1, 2016
IAS 7 Financial Instruments: Disclosures - Disclosure Initiative - (Amendment) January 1, 2017
IAS 12 Income Taxes – Recognition of Deferred Tax Assets for Unrealized losses
(Amendments) January 1, 2017
IAS 16 Property, Plant and Equipment and IAS 38 intangible assets - Clarification
of Acceptable Method of Depreciation and Amortization (Amendment) January 1, 2016
IAS 16 Property, Plant and Equipment IAS 41 Agriculture - Agriculture: Bearer Plants
IAS 27 Separate Financial Statements – Equity Method in Separate Financial Statements
The above standards and amendments are not expected to have any material impact on the Company’s financial
statements in the period of initial application.
In addition to the above standards and amendments, improvements to various accounting standards have also been
issued by the IASB in September 2014. Such improvements are generally effective for accounting periods beginning on
or after 01 January 2016. The Company expects that such improvements to the standards will not have any material
impact on the Company’s financial statements in the period of initial application.
Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of
applicability in Pakistan.
IASB Effective date

(annual periods
Standard beginning on or after)

IFRS 9 – Financial Instruments: Classification and Measurement January 1, 2018
IFRS 14 – Regulatory Deferral Accounts January 1, 2016
IFRS 15 – Revenue from Contracts with Customers January 1, 2018
IFRS 16 – Leases January 1, 2019

6 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

2016 2015 Note 2016 2015
No. of shares (Rupees) (Rupees)

110,590,546 110,590,546 Ordinary shares of Rs. 10 each fully paid in cash 1,105,905,460 1,105,905,460

7 LONG TERM LOANS

Conventional arrangement

Term finance - secured I 7.1 93,750,000 131,250,000
Term finance - secured II 7.2 175,000,000 –
Term finance - secured III 7.3 75,000,000 –
Syndicated term finance - Secured IV – 65,333,310
343,750,000 196,583,310
Less: Current maturity shown under current liabilities (100,000,000) (102,833,310)
243,750,000 93,750,000

Shariah compliant arrangement – –

243,750,000 93,750,000

7.1 This represents long term finance facility obtained from a financial institution carrying mark-up at the rate of 3 months
KIBOR plus 200 bps per annum repayable in 48 monthly instalments starting from December 2013 with grace period of
one year. This facility is secured against first pari passu charge over present and future fixed assets of the Company.

KIBOR plus 200 bps per annum repayable in 60 monthly instalments starting from December 2015 with grace period
of nine months. This facility is secured against first pari passu charge over present and future fixed assets of the
Company.

of six months. This facility is secured against first joint pari passu charge over present and future fixed assets of the
Company.

8 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

The interest rates used as the discounting factor (i.e. implicit in the lease) range from 1 month KIBOR plus 175 bps to 1 Year
KIBOR plus 150 bps (2015: 3 months KIBOR plus 200 bps to 6 months KIBOR plus 275 bps). The amount of future payments
and the period during which they will become due are:

2016 2015
(Rupees) (Rupees)
Year ending 30 June

2016 – 25,313,736
2017 39,232,107 26,597,448
2018 39,501,442 24,454,865
2019 42,471,056 27,009,218
2020 15,038,918 –
2021 16,523,199 –
152,766,722 103,375,267

Less: Future finance charges (19,687,743) (13,432,059)
133,078,979 89,943,208

104,377,393 72,005,702

8.1 The lease agreements have the option for purchase of asset at the end of the lease period. There are no financial
restrictions in the lease agreement.

8.2 Minimum Lease Payments (MLP) and their Present Value (PV) are regrouped below:
2016 2015
MLP PV of MLP MLP PV of MLP
(Rupees) (Rupees) (Rupees) (Rupees)

Due not later than 1 year 39,232,107 28,701,586 25,313,736 17,937,506
Due later than 1 year but not
later than 5 years 113,534,615 104,377,393 78,061,531 72,005,702
152,766,722 133,078,979 103,375,267 89,943,208

Note 2016 2015
(Rupees) (Rupees)
9 NET DEFINED BENEFIT LIABILITY - FUNDED GRATUITY

Staff retirement benefits - gratuity 9.1 49,805,868 48,493,178

9.1 The amounts recognized in the balance sheet are as follows:

Present value of defined benefits obligation 59,666,550 48,493,178
Less: Fair value of plan assets (9,860,682) –
49,805,868 48,493,178
9.2 The amounts recognized in the profit & loss account are as follows:

Current service cost 5,075,030 4,397,917
Interest cost on defined benefit obligation 4,679,447 5,262,735
Expense recognized in the profit and loss account 9,754,477 9,660,652

Note 2016 2015
(Rupees) (Rupees)
9.3 The charge for the year has been allocated as follows:

Cost of sales 28.2 7,410,593 7,840,588
Distribution costs 29.1 659,698 526,081
Administrative expenses 30.1 1,684,186 1,293,983
9,754,477 9,660,652

9.4 Movements in the net liability recognized in the balance sheet are as follows:

Net liabilities at the beginning of the year 48,493,178 41,194,711
Expense recognized during the year 9,754,477 9,660,652
Benefits paid (997,700) (2,751,880)
Remeasurements charged to other comprehensive income 2,416,595 389,695
Net liabilities at the end of the year 59,666,550 48,493,178

9.5 Movements in the present value of defined benefit obligation:

Present value of defined benefits obligation at the beginning of the year 48,493,178 40,994,681
Benefits paid (997,700) (2,551,850)
Remeasurement:
Actuarial gain from changes in financial assumptions (271,872) –
Experience adjustments 2,688,467 389,695
Present value of defined benefits obligation as at June 30 59,666,550 48,493,178

9.6 Movements in the fair value of plan assets:

Fair value of plan assets at the beginning of the year – –
Contribution by employer 9,860,682 –
Fair value of plan assets as at June 30 9,860,682 –

Qualified actuaries have carried out the valuation as at 30 June 2016. The projected unit credit method, based on the
following significant assumptions, is used for valuation of the plan:

2016 2015

Discount rate for interest cost in profit & loss charge 9.75% 13.25%
Discount rate for obligation 7.25% 9.75%
Expected rates of salary increase in future years 6.25% 8.75%
Retirement assumption Age 60 Age 60

A quantitative sensitivity analysis for significant assumption on defined benefit obligation is as shown below:

Impact on defined
Sensitivity level Assumption benefit obligation

+100 bps Discount rate 55,158,033
- 100 bps Discount rate 64,883,218
+100 bps Expected increase in salary 64,951,469
- 100 bps Expected increase in salary 55,017,440

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined
benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The average duration of the defined benefit plan obligation at the end of the reporting period is 8 years.

9.7 During the year, the Company formed a funded gratuity plan, for all its permanent employees, duly approved by
Commissioner Inland Revenue through order no. 7220314 dated May 17, 2016.

9.8 The contribution to the gratuity fund is placed under conventional arrangement.

10 DEFFERED TAX LIABILITY Note 2016 2015
(Rupees) (Rupees)
This comprises of:

Deferred tax liabilities on taxable temporary differences
Accelerated tax depreciation 232,347,688 247,820,611

Deferred tax assets on deductible temporary differences
Trade debts - provision for doubtful debts (6,004,031) (6,391,389)
Provision against stock (32,661,890) (141,231)
Provision against advance – (461,560)
Provision against other (859,462) (2,151,917)
Deferred and unpaid liabilities (28,525,391) (22,749,708)
Tax losses and minimum tax credit carried forward (54,736,360) (156,717,408)
109,560,554 59,207,398

11 TRADE AND OTHER PAYABLES

Creditors 128,728,225 113,003,143
Accrued liabilities 115,727,028 51,194,172
Security deposits 11.1 400,000 400,000
Advances from customers 11.2 11,578,979 11,312,779
Workers profit participation fund 11.3 32,507,240 15,803,946
Workers welfare fund 11.4 34,647,760 20,445,331
Withholding tax payable 1,904,594 660,047
Others 2,349,513 382,701
327,843,339 213,202,119

11.1 These represents security deposits from distributors and transporters which, by virtue of agreement, are interest free,
repayable on demand and are used in the normal course of business.

11.2 This include advance received from subsidiary company amounting to Rs. 102,848.

Note 2016 2015
(Rupees) (Rupees)

11.3 Balance as at July 01 15,803,946 14,628,751
Add: Provision for the year 31 32,507,240 15,803,946
Less: Payments made during the year (15,803,946) (14,628,751)
Balance as at June 30 32,507,240 15,803,946

Less: Payments made during the year 11.5 - -

11.5 No payment is made during the year as the case regarding collection of Workers Welfare Fund (WWF) by Provincial
Governments after the passage of the 18th Amendment is pending before Honourable Supreme Court.

Note 2016 2015
(Rupees) (Rupees)
12 SHORT TERM BORROWINGS - SECURED

Conventional arrangement 12.1 1,065,066,569 755,101,502
Shariah compliant arrangement 12.2 67,561,425 95,494,543
1,132,627,994 850,596,045

12.1 The aggregate of short term finance facilities available at period end is Rs. 2,770 million (2015: Rs. 1,625 million). The
rate of mark up ranges from 1 month KIBOR + 15 bps to 6 months KIBOR + 150 bps with no floor and no cap (2015:
1 month KIBOR + 5 bps to 6 months KIBOR + 150 bps with no floor and no cap). The facilities are secured against
joint pari passu charge on the present and future current assets of the Company.
The unutilized facility for opening letters of credit and bank guarantees as at June 30, 2016 amounts to Rs. 750 million
(2015: Rs. 276 million) and Rs. 96 million (2015: Rs.115 million) respectively.

12.2 The aggregate of short term finance facilities under Shariah compliant arrangements available at period end is Rs. 350
million (2015: Rs. 200 million). The rate of mark up ranges from 1 month KIBOR + 100 bps to 3 months and
6 months KIBOR + 125 bps with no floor and no cap (2015: 1 month KIBOR + 5 bps to 3 months and 6 months
KIBOR + 125 bps with no floor and no cap). The facilities are secured against joint pari passu charge on the present
and future current assets of the Company.
The unutilized facility for opening letters of credit as at June 30, 2016 amounts to Rs. 249 million (2015: Rs. 169 million).

13 CONTINGENCIES AND COMMITMENTS

13.1 CONTINGENCIES

13.1.1 The income tax authorities raised a tax demand of Rs. 206 million by treating the remission of loan as taxable income
of Rs. 711 million for the tax year 2011. Appellate Tribunal Inland Revenue (ATIR) decided the case in favour of the
Company. The Income Tax Department has filed an appeal in Honourable Lahore High Court against the decision.

13.1.2 Income Tax Department has amended the Company’s assessment relating to tax year 2009 under section 122(5A) of
the Ordinance, disallowing certain expenses and rejecting a refund amounting to Rs. 20 million against prior periods.
The Company has filed an appeal before Commissioner Inland Revenue.

13.1.3 Pending the outcome of above cases, no provision has been made in the financial statements, since the management
of the Company based on the consultant opinion, is confident that the outcome of the appeals will be in the favour of
the Company.

13.2 COMMITMENTS

Commitments in respect of letters of credit and letters of guarantee as at June 30, 2016 are as follows:

2016 2015
(Rupees) (Rupees)
Letters of credit established for the import of raw materials,
spare parts and machinery 464 million 73 million
Letter of guarantee given to SNGPL 96 million 96 million
Letter of guarantee given to PSO 15 million 5 million
Letter of guarantee given to Total PARCO 3 million –

Note 2016 2015
14 PROPERTY, PLANT AND EQUIPMENT (Rupees) (Rupees)

Operating fixed assets 14.1 1,585,033,172 1,503,129,843
Capital work in progress 14.5 190,420,201 125,742,377
1,775,453,373 1,628,872,220
14.1-14.2 (on next page)
14.3 No assets were sold to the Chief Executive, Directors, Executives or Shareholders holding more than 10% of total
paid-up capital.
` Note 2016 2015

14.4 Depreciation for the year has been allocated as under: (Rupees) (Rupees)
Cost of sales 28 130,895,824 111,236,439

Distribution costs 29 1,576,126 2,807,344
Administrative expenses 30 5,430,927 4,688,245
137,902,877 118,732,028
14.5 Capital work in progress 2016 2015

Plant and
Building machinery Others Total Total
(Rupees) (Rupees)
Opening balance – 125,742,375 – 125,742,375 610,647,014

Additions during the year 19,123,483 165,630,178 28,808,587 213,562,248 201,650,441
19,123,483 291,372,553 28,808,587 339,304,623 812,297,455
Transferred to fixed assets (19,123,483) (119,376,363) (10,384,576) (148,884,422) (686,555,078)
- 171,996,190 18,424,011 190,420,201 125,742,377

15 INTANGIBLE Note 2016 2015
(Rupees) (Rupees)
Software and licenses
Cost:
As at July 1 2,166,500 2,166,500
Additions during the year – –
As at June 30 2,166,500 2,166,500

Accumulated amortization:
As at July 1 (1,171,055) (758,038)
Amortization during the year 30 (434,244) (413,017)
As at June 30 (1,605,299) (1,171,055)

Net book value 561,201 995,445
Rate of amortization 20% 20%
16 INVESTMENT IN SUBSIDIARY

During the period, Nimir Industrial Chemicals Limited formed a wholly owned subsidiary under the name of Nimir Holding
(Private) Limited. NHPL formed a sub-subsidiary, Nimir Management (Private) Limited, which acquired the majority
shareholding of Nimir Resins Limited (formerly Descon Chemicals Limited), a listed company engaged in the business of
industrial chemicals. The effective shareholding of the Company in Nimir Resins Limited (formerly Descon Chemicals Limited)
is 37.44%. The Company has determined that Nimir Resins Limited (formerly Descon Chemicals Limited) is a subsidiary in
accordance with IFRS 10 Consolidated Financial Statements.

17 LOAN TO SUBSIDIARY

This represents loan provided to Nimir Holdings (Private) Limited for the purpose of investment in 51% shares of Nimir
Management (Private) Limited for onward acquisition of Nimir Resins Limited (formerly Descon Chemicals Limited), as
explained in note 16. The loan is repayable on demand. However, the Company does not intend to make demand within next
12 months.

18 LONG TERM DEPOSITS Note 2016 2015
(Rupees) (Rupees)
Security deposits
Leasing companies and banks 18.1 16,753,286 14,538,086
Others 18.2 14,415,842 14,415,842
31,169,128 28,953,928

18.1 Security deposit against assets leased under Shariah compliant arrangement amounts to Rs. 884,300
(2015: Rs. 269,100)

18.2 It includes deposit amounting to Rs. 12.24 million (2015: Rs. 12.24 million) given to WAPDA for dedicated line.

19 STORES, SPARES AND LOOSE TOOLS 2016 2015
(Rupees) (Rupees)
Stores, spares and loose tools
In hand 128,927,183 70,901,854
In transit 1,901,005 928,863
130,828,188 71,830,717


20 STOCK IN TRADE Note 2016 2015
(Rupees) (Rupees)

Raw and packing material
In hand 217,876,004 108,000,870
In transit 229,285,387 383,814,519
447,161,391 491,815,389

Provision for raw material (10,433,626) –
Provision for onerous contract (76,194,000) –
Provision for packing material (427,973) (427,973)
(87,055,599) (427,973)
360,105,792 491,387,416

Finished goods 277,889,730 267,026,180
637,995,522 758,413,596

21 TRADE DEBTS

Unsecured - considered good
Due from customer 21.1 820,180,742 482,312,500
Due from associated company 471,953 –
820,652,695 482,312,500

Considered doubtful 19,367,842 19,367,842
Provision for doubtful debts (19,367,842) (19,367,842)
– –
820,652,695 482,312,500

21.1 These customers have no recent history of default. For age analysis of these trade debts, referred to Note 37.1.1.

21.2 Aggregate amount due from Directors, Chief Executives and Executives of the Company is Rs. Nil (2015: Rs. Nil).

22 LOANS AND ADVANCES Note 2016 2015
(Rupees) (Rupees)

Considered good - unsecured
Suppliers 54,133,212 28,762,238
Employees against business expenses 3,023,792 1,278,702
Employees against salary 7,227,234 4,840,254
64,384,238 34,881,194

22.1 The above amount does not carry interest.

23 TRADE DEPOSITS AND SHORT TERM PREPAYMENTS

Security deposit 23.1 – 168,950
Prepayments 7,736,013 8,741,076
7,736,013 8,910,026

23.1 Security deposits under Shariah compliant arrangement amounts to Rs. Nil (Rs. Nil).

24 OTHER RECEIVABLES Note 2016 2015
(Rupees) (Rupees)

Margin against bank guarantee 24.1 16,491,350 11,716,515

24.1 Margin against bank guarantee under Shariah compliant arrangement amounting Rs. Nil (2015: Rs. Nil).

25 TAX REFUNDS DUE FROM GOVERNMENT Note 2016 2015
(Rupees) (Rupees)

Advance income tax 198,037,950 91,757,549
Sales tax 24,906,740 16,465,032
Federal excise duty refundable 3,748,500 3,748,500
226,693,190 111,971,081

26 CASH AND BANK BALANCES

Cash in hand 2,792,186 389,048
Cash at bank
Current accounts 52,395,336 13,518,186
Savings account 26.1 462,455 53,663
52,857,791 13,571,849
Shariah compliant arrangement

Current account 6,026,773 157,261
58,884,564 13,729,110
61,676,750 14,118,158

26.1 These carry mark-up rate ranging from 4% to 5% (2015: 4.75%) per annum.

27 SALES 2016 2015
(Rupees) (Rupees)

Gross sales

Local sales 5,862,388,672 4,284,995,883
Export sales 1,750,400 –
5,864,139,072 4,284,995,883

Less: sales tax (852,776,538) (621,495,417)
Less: discount (93,950) (1,143)
Net sales 5,011,268,584 3,663,499,323


28 COST OF SALES Note 2016 2015
(Rupees) (Rupees)

Raw and packing material consumed 28.1 3,232,518,369 2,657,662,060
Salaries, wages and benefits 28.2 179,026,965 127,240,009
Depreciation 14.4 130,895,824 111,236,439
Fuel and power 345,593,504 259,634,704
Stores, spares and loose tools consumed 92,057,062 39,713,733
Repairs and maintenance 28,467,614 16,071,037
Traveling, conveyance and entertainment 17,782,182 15,510,003
Communications 868,250 919,770
Insurance 7,551,823 6,249,518
Printing and stationery 1,598,434 1,777,107
Other expenses 13,696,906 8,049,380
4,050,056,933 3,244,063,760
Add: opening stock-finished goods 20 267,026,180 125,584,451
Less: closing stock-finished goods 20 (277,889,730) (267,026,180)
4,039,193,383 3,102,622,031

28.1 Raw and packing material consumed

Opening balance 491,387,416 428,631,409
Purchases 3,101,236,745 2,720,418,067
3,592,624,161 3,149,049,476
Less: closing balance 20 (360,105,792) (491,387,416)
Raw and packing material consumed 3,232,518,369 2,657,662,060

28.2 This includes Rs. 7.4 million (2015: Rs. 7.8 million) in respect of staff retirement benefits - gratuity scheme.

29 DISTRIBUTION COSTS Note 2016 2015
(Rupees) (Rupees)

Repairs and maintenance 94,567 42,940
Communications 221,474 225,723
Insurance 2,011,531 1,641,806
Freight outward 40,853,469 28,109,892
Distribution commission 38,441,831 29,009,837
Packing, carriage and forwarding 1,320 183,960
Printing and stationery 143,711 257,860
Depreciation 14.4 1,576,126 2,807,344
Other expenses 271,862 195,616
104,893,010 76,565,413


30 ADMINISTRATIVE EXPENSES Note 2016 2015
(Rupees) (Rupees)

Fuel and power 976,670 912,206
Repairs and maintenance 1,405,677 916,826
Communications 3,149,824 2,517,303
Insurance 1,289,164 952,178
Rent, rates and taxes 1,576,141 1,307,135
Advertising and sale promotion 825,388 544,452
Legal, professional and consultancy charge 3,149,666 3,271,211
Auditors’ remuneration 30.2 1,750,000 1,225,000
Depreciation 14.4 5,430,927 4,688,245
Amortization 15 434,244 413,017
Other expenses 9,964,783 7,252,234
102,295,839 72,252,354
30.1 This includes Rs. 1.7 million (2015: Rs. 1.3 million) in respect of staff
retirement benefits - gratuity scheme.

30.2 Auditors’ remuneration

Audit fee 1,000,000 725,000
Consolidation, reviews and certifications 680,000 430,000
Out of pocket expenses 70,000 70,000
1,750,000 1,225,000

31 OTHER EXPENSES

Loss on sale of damaged packing material - scrap 901,034 1,513,536
47,610,703 23,322,981

32 OTHER INCOME

Non financial assets

Gain on disposal of property, plant and equipment 14.2 186,480 1,968,178
Reversal of provision on sales tax refundable – 13,598,057
Miscellaneous income 32.1 182,212 1,546,229

Financial assets
Profit on savings account 32.2 305,600 2,170,751
Profit on term deposit receipt 32.2 144,365 357,539
818,657 19,640,754
32.1 Income earned under Shariah compliant arrangement amount to Rs. Nil (2015: Rs. Nil).
32.2 Profit earned under Shariah compliant arrangement amount to Rs. Nil (2015: Rs. Nil).
33 FOREIGN EXCHANGE LOSS Note 2016 2015
(Rupees) (Rupees)

Foreign liabilities 33.1 24,139,486 7,778,704

33.1 This include unrealized exchange loss on translation of liabilities in foreign currency amounting to Rs. 897,926 (2015: Rs. Nil).

34 FINANCE COST 2016 2015
(Rupees) (Rupees)

Mark-up on
Long term loans 24,185,696 25,364,071
Financial charges on lease 6,264,000 5,910,232
Bank charges, fee and commission 5,844,270 4,224,467
90,519,682 106,330,524
35 TAXATION

Current tax:
Current year 111,497,880 295,386
Prior year 151,301 (13,273,122)
111,649,181 (12,977,736)
Deferred tax:
Relating to the reversal and origination of temporary differences 52,952,531 85,204,004
Expense resulting from reduction in tax rate (1,850,231) 262,592
51,102,300 85,466,596
162,751,481 72,488,860
36 EARNINGS PER ORDINARY SHARE - BASIC AND DILUTED

36.1 Basic

Profit attributable to ordinary shareholders 440,683,657 221,779,210
Weighted average number of ordinary shares 110,590,546 110,590,546
Earnings per ordinary share 3.98 2.01

36.2 Diluted

No figure for diluted earning per share has been presented as the Company has not issued any instrument carrying
option which would have an impact on earnings per share when exercised.

37 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES

The main risks arising from the Company’s financial instruments are credit risk, liquidity risk, foreign currency risk, interest
rate risk and equity price risk. The management reviews and agrees policies for managing each of these risks which are
summarized below.

37.1 Credit Risk

Credit risk is the risk which arises with the possibility that one party to a financial instrument will fail to discharge its
obligation and cause the other party to incur a financial loss. The Company attempts to control credit risk by monitoring
credit exposures, limiting transactions with specific counterparties and continually assessing the creditworthiness of
counterparties. The Company does not believe it is exposed to major concentration of credit risk, however to manage
any possible exposure the Company applies approved credit limits to its customers.

The management monitors and limits the Company’s exposure to credit risk through monitoring of client’s credit
exposure review and conservative estimates of provisions for doubtful receivables, if any, and through the prudent
use of collateral policy.

The Company is exposed to credit risk on long-term deposits, trade debts, short term deposits, advances to suppliers,
other receivables and bank balances. The Company seeks to minimize the credit risk exposure through having
exposures only to customers considered credit worthy and obtaining securities where applicable. The maximum
exposure to credit risk at the reporting date is:

Carrying values
2016 2015
(Rupees) (Rupees)

Long-term deposits 31,169,128 28,953,928
Short-term deposits – 168,950
Trade debts – unsecured 820,652,695 482,312,500
Advances 54,133,212 28,762,238
Other receivables 16,491,350 11,716,515
Bank balances 58,884,564 13,729,110

The credit quality of financial assets can be assessed by reference to external credit ratings or the historical information
about counter party defaults as shown below:

2016 2015
37.1.1 Trade Debts (Rupees) (Rupees)

Other than related parties

Neither past due nor impaired 514,228,299 278,867,673

Past due but not impaired
1-30 days 265,514,127 121,702,641
31-60 days 36,122,462 81,726,256
61-90 days 4,315,855 15,930
Over 90 days – –
305,952,443 203,444,827

2016 2015
(Rupees) (Rupees)

Past due and impaired
1-30 days – –
31-60 days – –
61-90 days – –
Over 90 days 19,367,842 19,367,842
19,367,842 19,367,842
839,548,584 501,680,342

Related parties

Neither past due nor impaired 470,597 –

1-30 days 1,356 –
31-60 days – –
61-90 days – –
1,356 –
471,953 –

37.1.1.1 The sale to one major customer amounts to Rs. 714,425,524 (2015: Rs. 674,251,186) which represents more than
10% of the total revenue.

37.1.1.2 As at June 30, 2016, trade debts of Rs. 19.37 million (2015: Rs. 19.37 million) were impaired and provided for.

37.1.2 Bank Ratings 2016 2015
Financial institution Agency Short Term Long term (Rupees) (Rupees)

Albaraka Bank (Pakistan) Limited PACRA A1 A 1,724,954 157,261
Deutsche Bank AG Moody’s P-2 Baa2 – 7,531
Habib Bank Limited JCR-VIS A1+ AAA 9,685 614,003
MCB Bank Limited PACRA A1+ AAA 462,455 53,663
Meezan Bank Limited JCR-VIS A1+ AA 4,301,819 –
National Bank of Pakistan PACRA A1+ AAA 55,608 (248,078)
Silk Bank Limited JCR-VIS A-2 A- 6,157 5,248
Standard Chartered Bank Limited PACRA A1+ AAA 375,265 266,191
The Bank of Punjab PACRA A1+ AA- 51,948,621 12,873,291
58,884,564 13,729,110

37.2 Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its commitments associated with financial liabilities
when they fall due. Liquidity requirements are monitored regularly and management ensures that sufficient liquid
funds are available to meet any commitments as they arise.

Financial liabilities are analysed below, with regard to their remaining contractual maturities.


Maturity Up to Maturity After
One Year One Year Total
(Rupees)
For the year ended June 30, 2016
Long term loans 100,000,000 243,750,000 343,750,000
Liabilities against assets subject to finance lease 28,701,586 104,377,393 133,078,979
Short term borrowings 1,132,627,994 – 1,132,627,994
Mark up accrued 20,166,754 – 20,166,754
Unclaimed dividend 11,587,280 – 11,587,280
Trade and other payables 247,204,766 – 247,204,766
Total financial liabilities 1,540,288,380 348,127,393 1,888,415,773

Long term loans 102,833,310 93,750,000 196,583,310
Short term borrowings 850,596,045 – 850,596,045
Mark up accrued 11,989,038 – 11,989,038
Unclaimed dividend 687,266 – 687,266

37.3 Market Risk

37.3.1 Currency Risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates
primarily to the foreign trade payables. However at the year end, there are no material foreign currency balances.

37.3.2 Interest Rate Risk

Interest rate risk arises from the possibility that changes in interest rate will affect the fair value or future cash flows
of financial instruments. The Company is exposed to interest rate risk for loans obtained from the financial institutions
and liabilities against assets subject to finance lease, which have been disclosed in the relevant note to the financial
statements.

If interest rates at the year end, fluctuate by 1% higher / lower, profit for the year would have been Rs. 15.8 million
(2015: Rs. 11.3 million) higher / lower. This analysis is prepared assuming that all other other variables held constant
and the amounts of liabilities outstanding at the balance sheet dates were outstanding for the whole year.

37.4 Capital Management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and
healthy capital ratios in order to support its business and maximize shareholders’ value. The Company manages its
capital structure and makes adjustments to it in the light of changes in economic conditions. Capital includes ordinary
share capital and reserves. The gearing ratio of the Company is 27% (2015: 17%).


37.5 Fair value of financial assets and financial liabilities

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing
parties in an arm’s length transaction. As at the balance sheet date, carrying value of all the financial instruments in
the financial statements approximates their fair value. Further, all financial assets and financial liabilities at balance
sheet date are categorized into loans and advances.

38 TRANSACTIONS WITH RELATED PARTIES

The related parties and associated undertakings comprise parent company, related group companies, directors and key
management personnel. Remuneration of Chief Executive and directors is also shown in Note 39. Transactions with related
parties during the year are as follows;

Nature and Description of
Relationship with the Company Related Party Transaction 2016 2015
(Rupees) (Rupees)

Parent company Dividend Paid 188,011,941 –
Subsidiary company Investment in shares 20,000,000 –
Subsidiary company Long term loan 235,500,000 –
Subsidiary company Sale of goods 36,169,036 –
Subsidiary company Services provided 678,739 –
Subsidiary company Services acquired 798,303 –
Associated company Sale of goods 1,301,344 –
Staff retirement benefits Gratuity Paid 997,700 –

39 REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES

Chief Executive Directors Executives
2016 2015 2016 2015 2016 2015
Number of persons 1 1 2 2 24 19
(Rupees)

Remuneration 6,193,548 4,064,516 9,290,322 6,193,548 29,286,240 21,220,852
Housing 2,787,098 1,829,033 4,180,646 2,787,098 13,178,834 9,549,401
Utilities 619,354 406,451 929,032 619,352 2,928,603 2,122,067
Bonus 1,703,245 1,536,647 2,595,420 2,304,970 9,617,067 9,301,301
11,303,245 7,836,647 16,995,420 11,904,968 55,010,744 42,193,621

39.1 The Chief Executive Officer, Directors and some executives have been provided with Company maintained cars and
generator sets, further they are also entitled to club membership and reimbursement of medical and entertainment
expenses.

39.2 An amount of Rs. 974,000 (2015: Rs. 617,777) was paid to directors on attending the board meetings.

40 NUMBER OF EMPLOYEES 2016 2015

Number of employees as at 30 June 133 134
Average number of employees during the year 136 132

41 PRODUCTION CAPACITY IN METRIC TONS
2016 2016 2015 2015
Maximum Actual *Maximum Actual
Capacity (MT) Production (MT) Capacity (MT) Production (MT)

Oleo Chemicals 45,500 44,816 36,000 29,001
Chlor Alkali Products 41,500 40,151 37,000 33,134
* Determined on weighted average basis.

41.1 The variance between maximum capacity and actual utilization is due to market conditions.

42 POST BALANCE SHEET EVENTS

The Board of Directors at its meeting held on September 29, 2016 has approved a final dividend @ Rs. Nil per share, the
Board had earlier declared and paid interim cash dividends totaling Rs. 2 per share ( i.e. 20%). Therefore total cash dividend
for the year ended 30 June 2016 is Rs. 2 per share (2015: Rs. 1 per share).

43 DATE OF AUTHORIZATION FOR ISSUE

These financial statements were authorized for issue by the Board of Directors on Thursday, September 29, 2016.

44 CORRESPONDING FIGURES

Following figures have been rearranged for better and fair presentation.
From To Amount
Note no. Name Note no. Name Rupees

12 Short term borrowings 26 Cash and bank balances 157,261


FINANCIAL STATEMENTS - CONSOLIDATED

DIRECTORS’ REPORT
The Board of Directors of the Company is pleased to present • Appropriate accounting policies have been consistently
consolidated financial statement of the Company for the year applied in preparation of the financial statements and
ended June 30, 2016. accounting estimates are based on reasonable and prudent
judgment.
During the period Nimir Industrial chemicals Limited formed a
wholly owned subsidiary under the name of Nimir Holding Private • International Financial Reporting Standards (IFRS), as
Limited (NHPL), which acquired the majority shareholding of applicable in Pakistan, have been followed in the preparation
Nimir Resins Limited (formerly Descon Chemicals Limited) of financial statements.
(NRL) through Nimir Management Private Limited (NMPL). NRL
is a listed Company engaged in the manufacturing and sales • The system of internal control is sound in design and has
of surface coating, polyesters, paper chemicals and textile been effectively implemented and monitored.
auxiliaries. The effective shareholding of Nimir group is as follow:
• There is no significant doubt upon the company ability to
1. The holding of NICL in NHPL 100% continue as a going concern.
2. The holding oh NHPL in NMPL 51%
3. The holding of NMPL in NRL 51% There has been no material departure from the best practices of
4. The holding of NHPL in NRL 11.43% the corporate governance, as detailed in the listing regulations.
The effective shareholding of the NICL in NRL is 37.44%. After

taking over the control in January 2016, NRL has been turned External Auditor:
into a viable venture. NRL posted net profit of Rs. 53 million in The present auditors M/s EY Ford Rhodes and Company,
the FY 2016 as against net loss of Rs. 82 million in the FY 2015. Chartered Accountant, retiring this year, being eligible, have
NRL is operating in a very competitive environment and offered themselves for re-appointment as external auditor of
competing with unorganized sector. Having strong technical the Company for the year ending June 30, 2017.
knowledge and vast experience of the chemicals business,
the management of the Company is confident to continue this Dividend / Bonus Shares:
momentum of improvement in future, Insha Allah. During the year NICL declared 20% cash dividend during the
A process of issuing right shares of Rs. 385 million in NRL has financial year ended June 30, 2016.
already started. The process in advance stage and would be
completed in October 2016.
Corporate Governance:
As required under Code of Corporate Governance, the board of
Directors states that:
For and on behalf of the Board
• The Consolidated Financial statements, prepared by the
management of the Company, present fairly its state of
affairs, the results of its operations, cash flows and changes
in equity.
September 29, 2016 Zafar Mahmood
• Proper books of accounts of the Company have been Lahore Chief Executive Officer
maintained.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS
We have audited the annexed consolidated financial
statements comprising the consolidated balance sheet of
Nimir Industrial Chemicals Limited (the Holding Company) and
its subsidiary companies as at June 30, 2016 and the related
consolidated profit and loss account, consolidated statement of
comprehensive income, consolidated cash flow statement and
consolidated statement of changes in equity together with the
notes forming part thereof, for the year then ended. We have
also expressed separate opinion on the financial statements of
the Nimir Industrial Chemicals Limited, Nimir Holding (Private)
Limited and Nimir Management (Private) Limited, while the
financial statements of Nimir Resins Limited (formerly Descon
Chemicals Limited) were audited by other firm of auditors,
whose report has been furnished to us and our opinion, in so far
as it relates to the amounts included for such company, is based
solely on the report of such other auditors. These consolidated
financial statements are the responsibility of the holding
company’s management. Our responsibility is to express an
opinion on these consolidated financial statements based on
our audit.
Our audit was conducted in accordance with International

Standards on Auditing and accordingly included such tests of
accounting records and such other auditing procedures, as we
considered necessary in the circumstances.
In our opinion, the consolidated financial statements present

fairly the financial position of Nimir Industrial Chemicals Limited
and its subsidiary companies as at June 30, 2016 and the
results of their operations for the year then ended.
_________________________________
EY Ford Rhodes
Chartered Accountants
Audit Engagement Partner : Naseem Akbar
Lahore
September 29, 2016

CONSOLIDATED BALANCE SHEET
Note 2016 2015
(Rupees) (Rupees)

EQUITY AND LIABILITIES

Share Capital and Reserves

Authorized share capital
145,000,000 (2015: 145,000,000) Ordinary shares of Rs.10 each 1,450,000,000 1,450,000,000

Issued, subscribed and paid up capital 7 1,105,905,460 1,105,905,460
Unappropriated profit 779,601,452 574,711,100
Non-controlling interest 206,192,467 –
2,091,699,379 1,680,616,560
NON CURRENT LIABILITIES

Long term loans 8 442,546,714 93,750,000
Liabilities against assets subject to finance lease 9 104,377,393 72,005,702
Net defined benefit liability - unfunded gratuity 10 – 48,493,178
Deferred tax liability 11 140,261,558 59,207,398
687,185,665 273,456,278

CURRENT LIABILITIES

Trade and other payables 12 507,118,503 213,202,119
Net defined benefit liability - funded gratuity 10 49,805,868 –
Mark up accrued 29,973,118 11,989,038
Unclaimed dividend 11,880,099 687,266
Short term borrowings 13 1,903,994,062 850,596,045
Current maturity of long term loans 8 100,000,000 102,833,310
Current maturity of liabilities against assets subject to finance lease 9 28,701,586 17,937,506
Provision for taxation 130,857,736 1,657,258
2,762,330,972 1,198,902,542

CONTINGENCIES AND COMMITMENTS 14 – –

TOTAL EQUITY AND LIABILITIES 5,541,216,016 3,152,975,380
CHIEF EXECUTIVE OFFICER

AS AT JUNE 30, 2016
Note 2016 2015
(Rupees) (Rupees)

ASSETS

NON CURRENT ASSETS

Property, plant and equipment 15 2,249,899,897 1,628,872,220
Intangible 16 2,219,885 995,445
Long term deposits 17 38,819,084 28,953,928
Net defined benefit assets - funded gratuity 10 1,384,342 –
2,292,323,208 1,658,821,593

CURRENT ASSETS

Stores, spares and loose tools 18 141,939,842 71,830,717
Stock in trade 19 1,127,394,072 758,413,596
Trade debts 20 1,224,767,562 482,312,500
Loans and advances 21 112,852,978 34,881,194
Trade deposits and short term prepayments 22 9,940,760 8,910,026
Other receivables 23 46,514,001 11,716,515
Tax refunds due from government 24 377,530,496 111,971,081
Cash and bank balances 25 207,953,097 14,118,158
3,248,892,808 1,494,153,787

TOTAL ASSETS 5,541,216,016 3,152,975,380
DIRECTOR
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Note 2016 2015
(Rupees) (Rupees)

Sales - net 26 5,996,801,077 3,663,499,323

Cost of sales 27 (4,892,340,440) (3,102,622,031)

Gross profit 1,104,460,637 560,877,292

Distribution costs 28 (125,713,484) (76,565,413)

Administrative expenses 29 (150,749,030) (72,252,354)

Other expenses 30 (64,137,085) (23,322,981)

Other income 31 105,521,630 19,640,754
Foreign exchange loss 32 (24,139,486) (7,778,704)
Operating profit 845,243,182 400,598,594
Finance cost 33 (112,542,302) (106,330,524)
Profit before taxation 732,700,880 294,268,070

Taxation 34 (178,503,413) (72,488,860)


Attributable to:

Equity holders of the parent 535,641,380 221,779,210
Non-controlling interests 18,556,087 –
554,197,467 221,779,210

Earnings per share - basic and diluted 35 4.84 2.01



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Note 2016 2015
(Rupees) (Rupees)

Items not to be reclassified to profit or loss in subsequent periods:

Re-measurement losses on defined benefit plan - net of tax 10 (2,271,555) (189,665)

Total comprehensive income for the year 551,925,912 221,589,545

Attributable to:

Equity holders of the parent 533,759,895 221,589,545
Non-controlling interests 18,166,017 –
551,925,912 221,589,545
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Issued, subscribed
and paid up Unappropriated Non-controlling
share capital profit interest Total
(Rupees) (Rupees) (Rupees) (Rupees)
Balance as on July 1, 2014 1,105,905,460 353,121,555 – 1,459,027,015

Total comprehensive income for the year – 221,589,545 – 221,589,545
Balance as on June 30, 2015 1,105,905,460 574,711,100 – 1,680,616,560
Acquisition of subsidiary – – 209,383,205 209,383,205
Further acquisition of voting shares from
Non-controlling interest – – (26,205,982) (26,205,982)
Final dividend for 2015 @ Rs. 1 per share – (110,590,546) – (110,590,546)
Interim dividend for 2016 @ Rs. 1 per share – (110,590,546) – (110,590,546)
Interim dividend for 2016 @ Rs. 1 per share – (110,590,546) – (110,590,546)
Equity portion of sponsors’ interest free loans – 2,902,095 4,849,227 7,751,322
Total comprehensive income for the year – 533,759,895 18,166,017 551,925,912
Balance as on June 30, 2016 1,105,905,460 779,601,452 206,192,467 2,091,699,379



CONSOLIDATED CASH FLOW STATEMENT
2016 2015
(Rupees) (Rupees)
CASH FLOWS FROM OPERATING ACTIVITIES

Net profit before taxation 732,700,880 294,268,070

Adjustment for:
Depreciation 151,353,326 118,732,028
Amortization 2,359,553 413,017
Finance cost 112,542,302 106,330,524
Provision against stock in trade 89,771,835 –
Provision for gratuity 8,044,179 9,860,682
Provision for doubtful debts 7,635,043 –
Payable written back (345,759) –
Loan written off (15,000,000) –
Reversal of provision against others – (13,598,057)
Loss / (gain) on disposal of property, plant and equipment 46,283 (1,968,178)
Exchange loss 897,926 –
Intangible written off 14,247,295 –
371,551,983 219,770,016

Operating profit before working capital changes 1,104,252,863 514,038,086

(Increase) / decrease in current assets

Stores, spares and loose tools (58,465,725) (17,383,042)
Stock in trade (195,921,854) (240,744,731)
Trade debts (488,365,293) (242,018,343)
Loans and advances (63,096,011) (7,525,608)
Trade deposits and short term prepayments 29,258,088 (767,218)
Other receivables (34,797,486) 345,373
Tax refunds due from government (19,498,058) 42,083,354
(830,886,339) (466,010,215)
Increase / (decrease) in current liabilities

Trade and other payables 58,148,785 (24,972,336)
(772,737,554) (490,982,551)

Cash generated from operations 331,515,309 23,055,535

Contribution to gratuity fund (9,860,682) –
Gratuity paid (997,700) (2,751,880)
Finance cost paid (90,990,837) (107,098,533)
Tax paid (137,746,644) (50,231,427)
Long term deposits (2,215,200) (3,024,312)
(241,811,063) (163,106,152)

Net cash generated / (utilized) from operating activities 89,704,246 (140,050,617)

2016 2015
(Rupees) (Rupees)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (302,510,367) (220,133,346)
Purchase of intangible asset (1,658,684) –
Sale proceeds from disposal of property, plant and equipment 2,900,463 3,941,558
Acquisition of subsidiary, net of cash acquired 28,243,676 –
Net cash used in investing activities (273,024,912) (216,191,788)

CASH FLOWS FROM FINANCING ACTIVITIES

Long term loan obtained 349,548,036 –
Long term loan repaid (289,884,632) (84,083,340)
Acquisition of non-controlling interest (26,205,963) –
Dividend paid (320,871,624) –
Repayment of liabilities against assets subject to finance lease (27,919,111) (16,896,571)
New leases acquired during the year 64,790,882 10,655,710

Net cash generated from financing activities 377,155,605 308,173,638

Net increase / (decrease) in cash and cash equivalents 193,834,939 (48,068,767)

Cash and cash equivalents at the beginning of the year 14,118,158 62,186,925

Cash and cash equivalents at the end of the year 207,953,097 14,118,158



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 THE GROUP AND ITS OPERATIONS
1.1 Nimir Industrial Chemicals Limited (“NICL”) is part of Nimir Group (“The Group”) which consist of:
Holding Company
Nimir Resources (Private) Limited (“NRPL”)
Subsidiary Companies
Nimir Holding (Private) Limited (“NHPL”)
Nimir Management (Private) Limited (“NMPL”)
Nimir Resins Limited (“NRL”) (formerly Descon Chemicals Limited)
The shareholding of Nimir Group is as follows:
• The holding of NICL in NHPL: 100%

• The holding of NHPL in NMPL: 51%
• The holding of NMPL in NRL: 51%
• The holding of NHPL in NRL: 11.43%
• Effective holding of NICL in NRL: 37.44%
Nimir Industrial Chemicals Limited (“The Company”) was incorporated in Pakistan as a public limited company and
its shares are listed on Pakistan Stock Exchange (formerly Karachi Stock Exchange and Lahore Stock Exchange). The
Company is a subsidiary of Nimir Resources (Private) Limited which holds 56.67% of the total shares of the Company.
The registered office of the Company is situated at 14.8 km, Sheikhupura-Faisalabad Road, Mouza Bhikki, District
Sheikhupura, Pakistan. The Company is engaged in the manufacturing and sale of industrial chemical products.
Nimir Holding (Private) Limited and Nimir Management (Private) Limited were incorporated in Pakistan as private
limited companies on September 28, 2015 and December 4, 2015 respectively for the purpose of investment in Nimir
Resins Limited (formerly Descon Chemicals Limited). The registered office of NHPL and NMPL is Nimir House, 12-B,
New Muslim Town, Lahore, Pakistan.
Nimir Resins Limited (formerly Descon Chemicals Limited) was initially incorporated in Pakistan on December 17,
1964 as a private limited company under the Companies Act, 1913 (now the Companies Ordinance, 1984) and was
converted into public limited company on August 19, 1991 with the name of Nimir Resins Limited. The name of the
company was changed to Descon Chemicals Limited on April 1, 2010 when the company entered into a scheme of
arrangement for merger / amalgamation with Descon Chemicals (Private) Limited. Upon acquisition by Nimir Group as
explained in note 1.2, the name of the company changed to Nimir Resins Limited as per the approval of Securities and
Exchange Commission of Pakistan dated April 18, 2016. The shares of Nimir Resins Limited are quoted on Pakistan
Stock Exchange Limited (formerly Karachi Stock Exchange and Lahore Stock Exchange). The registered office is situated
at 14.5 KM, Lahore-Sheikhupura Road, Lahore. The principal activity of the company is to manufacture surface coating
resins for paint industry, polyesters, and optical brightener for paper and textile industries and textile auxiliaries for
textile industry.
1.2 On 4 November 2015, the Group along with certain other sponsors entered into Share Purchase Agreement (SPA) with
Abdul Razak Dawood and family, sponsoring directors of Nimir Resins Limited (formerly Descon Chemicals Limited),
for the purchase of 60.42% shareholding (120,578,469 shares) in Nimir Resins Limited. As per the SPA, the sale
price has been fixed at Rs. 6,028,923 equivalent to Rs. 0.05 per share. Out of the total shares acquired of Descon
Chemicals Limited, 101,774,507 shares (51%) have been transferred in the name of Nimir Management (Private)
Limited and 18,803,962 shares (9.42%) have been transferred in the name of Nimir Holding (Private) Limited as per
mutual agreement within the Group.

1.3 On April 18, 2016 Nimir Holding (Private) Limited further acquired 4,007,031 (2.01%) shares of Descon Chemicals
Limited through public offer, resulting in increase in the shareholding of Nimir Holding (Private) Limited in Descon
Chemicals Limited to 11.43%.
1.4 As a result of adoption of International Financial Reporting Standard (IFRS) – 10 ‘Consolidated Financial Statements’, the
Company assessed the control conclusion of its investment in Nimir Resins Limited (NRL) (formerly Descon Chemicals
Limited) that although, the Company has less than 50% shareholding in NRL, however, based on absolute size of the
Company’s shareholding, common directorship and management, the Company has the ability to exercise control over
NRL as per the terms of IFRS-10. Henceforth, the Company is deemed to be holding company of NRL.
2 STATEMENT OF COMPLIANCE
2.1 These financial statements have been prepared in accordance with approved accounting standards as applicable in
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRSs) issued
by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, provisions of
and directives issued under the Companies Ordinance, 1984. Wherever, the requirement of the Companies Ordinance,
1984 or directive issued by the Securities and Exchange Commission of Pakistan (SECP) differ with the requirements
of these standards, the requirements of Companies Ordinance, 1984 or the requirements of the said directives take
precedence.
2.2 Standards, interpretations and amendments to published approved accounting standards effective in 2016
The accounting policies adopted in the preparation of these financial statements are consistent with those of the
previous financial year except as describe below:
New / Revised Standards and Amendments
The Company has adopted the following accounting standard and the amendments which became effective for the
current year:
IFRS 10 – Consolidated Financial Statements

IFRS 11 – Joint Arrangements
IFRS 12 – Disclosure of Interests in Other Entities
IFRS 13 – Fair Value Measurement

The adoption of the above accounting standards did not have any effect on the financial statements except as disclosed
in note 1.4 above.
3 BASIS OF PREPARATION
3.1 Basis of measurement
These financial statements have been prepared under the historical cost convention except that certain employee
benefits are recognized on the basis mentioned in note 5.13
These financial statements are the consolidated financial statements of the Group in which investment in subsidiaries
is accounted for on the basis of acquisition method. Standalone financial statements of the Parent and its Subsidiary
are prepared separately.
3.2 Basis of consolidation
The Group’s consolidated financial statements include the financial statements of the Holding Company and its
subsidiary companies. The Group uses the acquisition method of accounting to account for business combination. The
consideration transferred is the fair value of the assets transferred, the liabilities assumed and the equity interest issued

by the Group, if any. The Group recognizes any non-controlling interest in the acquiree at the non- controlling interest’s
proportionate share of the identifiable net assets of the acquiree. The financial statement of the Holding Company and
its Subsidiaries are prepared up to the same reporting date using consistent accounting policy except as identified in
note 5.1. Identifiable assets acquired and liabilities assumed in the acquisition are measured initially at their fair value
at the date of acquisition.
Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the value of non-
controlling interest using proportionate share method over the net identifiable assets acquired and liabilities assumed.
If this is less than the fair value of the net asset of the subsidiary acquired, the difference is recognized in profit and
loss account. After initial recognition it is measured at carrying value i.e. at date of acquisition less any accumulated
impairment.
The financial statements of subsidiaries have been consolidated on line by line basis. Intra Group balances, transactions,
income and expenses have been eliminated. Assets, liabilities, income and expense have been consolidated from the
date the Group acquired the control of the subsidiary till the control cease to exist. Unrealized gain or loss on intra group
transactions are also eliminated but unrealized losses are however recognized to the extent of impairment, if any.
3.3 Non-controlling interest
The Group applies a policy of treating transactions with non-controlling interests as transaction with parties external to
the Group. Disposals of non-controlling interests results in gain and losses for the Group that are recorded in the profit
and loss account.
3.4 Functional and presentation currency
These financial statements are presented in Pak Rupee, which is the Company’s functional currency.
4 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires
the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of
applying the Company’s accounting policies. Estimates and judgments are continually evaluated and are based on the
historical experience, including expectations of future events that are believed to be reasonable under the circumstances.
These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision
and future periods if the revision affects both current and future periods. 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:
4.1 Provision for doubtful receivables
A provision for impairment of trade and other receivables is established when there is objective evidence that the
Company will not be able to collect all amounts due according to the original terms of receivables. These estimates
and underlying assumptions are reviewed on an ongoing basis.
4.2 Useful life and residual values of property, plant and equipment
Estimates with respect to residual values, depreciable lives and pattern of flow of economic benefits are based on
the analysis of the management of the Company. Further, the Company reviews the value of the assets for possible
impairments on an annual basis. Any change in the estimates in the future might affect the carrying amount of respective
item of property, plant and equipment.
Other areas where estimates and judgments involved are disclosed in respective notes to the financial statements.

4.3 Provision for taxation
In making the estimates for income tax payable, the Company takes into account the applicable laws and the decisions
by appellate authorities on certain issues in the past.
A deferred tax liability is recognized for all taxable temporary differences and deferred tax assets are recognized for
deductible temporary differences and unused tax losses to the extent that it is probable that taxable profits will be
available against which the losses can be utilized. Significant management judgment is required to determine the
amount of deferred tax liabilities and assets that can be recognized, based upon the likely timing and level of future
taxable profits together with future tax planning strategies.
5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied are consistent with prior year except as stated otherwise.
5.1 Property, plant and equipment
Owned assets
Property, plant and equipment of the Group are stated at cost less accumulated depreciation and impairment.
Cost of property, plant and equipment consists of historical cost and directly attributable cost of bringing the assets to
their present location and condition.
For property, plant and equipment of the Holding Company, depreciation is calculated using the straight line method,
whereas for property, plant and equipment of subsidiary company, depreciation is calculated using reducing balance
method except vehicles that are depreciated using straight line method at rates disclosed in note 15.1 which are
considered appropriate to write off the cost of the assets over their useful lives. However, in order to streamline with
the group policy, the subsidiary company has subsequently changed the depreciation policy from reducing balance
method to straight line method with effect from 1st July 2016.
Depreciation on additions is charged from the month in which an asset is acquired or capitalized while no depreciation
The carrying amounts of the Company’s assets are reviewed at each balance sheet date to determine whether there
is any indication of impairment. If any 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 values exceed the respective
recoverable amount, assets are written down to their recoverable amounts and the resulting impairment is recognized
in the income currently. The recoverable amount is the higher of an asset’s fair value less cost to sell and value in use.
Where an impairment loss is recognized, the depreciation charge is adjusted for 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 recognized as separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of
the item can be measured reliably. All other repair and maintenance costs are charged to income during the period in
which they are incurred.
The gain or loss on disposal or retirement of an asset represents the difference between the sale proceeds and the
carrying amount of the asset and is recognized as an income or expense in the period it relates.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal.

Capital Work In Progress
These are stated at cost less impairment loss, if any, including capitalization of borrowing costs. It consists of
expenditures incurred and advances made in respect of fixed assets in the course of their construction and installation.
Leased Asset
Leases where the Company has substantially all the risks and rewards of ownership are classified as finance leases.
At inception, finance leases are capitalized at the lower of present value of minimum lease payments under the lease
agreements and the fair value of the assets.
The related rental obligations, net of finance cost, are included in liabilities against assets subject to finance lease as
referred to in note 9. The liabilities are classified as current and non-current depending upon the timing of the payment.
Each lease payment is allocated between the liability and finance cost 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. The financial charges are
calculated at the interest rates implicit in the lease and are charged to the profit and loss account.
Assets held under finance lease are stated at cost less accumulated depreciation and impairment loss, if any, at the
rates and basis applicable to the Company owned assets.
5.2 Intangibles
Intangibles acquired separately are measured on initial recognition at cost. Following initial recognition, intangibles
are carried at cost less any accumulated amortization and any accumulated impairment losses. The useful lives of
intangibles are measured to be finite. Intangibles with finite lives are amortized over the useful life and assessed for
impairment whenever there is an indication that the asset may be impaired. The amortization period and amortization
method for an intangibles with a finite life is reviewed at each financial period end. The amortization expense is
recognized in profit or loss in the expense category consistent with the function of the intangibles.
Amortization on additions is charged from the month in which an asset is acquired or capitalized while no amortization
5.3 Stock in trade
Stock in trade, stores, spares and loose tools are valued at lower of cost or net realizable value except those in transit,
which are valued at invoice value including other charges, if any, incurred thereon. Basis of determining cost is as
follows:
Raw and packing material - weighted average cost

Material in transit - actual cost
Work in process - cost
Finished goods - weighted average cost
Stores, spares and loose tools - weighted average cost
Items considered obsolete are carried at nil value.
Provision for obsolete and slow moving inventory is based on management estimates.
Net realizable value is determined on the basis of estimated selling price of the product in the ordinary course of
business less costs of completion and costs necessary to be incurred in order to make the sale.

5.4 Trade debts
Trade debts are carried at invoice amount on transaction date less any estimate for doubtful debts. Known bad debts
are written off as and when identified.
5.5 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 of cheques in hand, cash and bank balances.
5.6 Financial instruments
All the financial assets and financial liabilities are recognized at the time when the Company becomes a party to the
contractual provisions of the instruments. The Company derecognizes a financial asset or a portion of financial asset
when, and only when, the Company loses control of the contractual rights that comprise the financial asset or portion
of financial asset. While a financial liability or part of financial liability is derecognized from the balance sheet when, and
only when, it is extinguished, i.e. when the obligation specified in the contract is discharged, cancelled or expires.
All financial assets and financial liabilities are initially measured at cost, which is the fair value of the consideration given
and received respectively. These financial assets and liabilities are subsequently measured at fair value, amortised cost
or cost, as the case may be.
Financial assets are investments, trade deposits, trade debts, loans and advances, other receivables, cash and bank
balances. These are stated at their nominal values as reduced by the appropriate allowances for estimating irrecoverable
amount.
Financial liabilities are classified according to the substance of the contractual arrangements entered into. Significant
financial liabilities are long term loans, short term running finance utilized under mark-up arrangements, creditors,
liabilities against assets subject to finance lease, accrued and other liabilities. Mark-up bearing finances are recorded
at the gross proceeds received. Other liabilities are stated at their nominal value.
5.7 Offsetting of financial assets and financial liabilities
A financial asset and financial liability is offset and the net amount is reported in the balance sheet if the Company has
a legal enforceable right to set off the recognized amounts and intends either to settle on net basis or to realize the
assets and settle the liabilities simultaneously.
5.8 Impairment of financial assets
The Company assesses at each balance sheet date whether there is any objective evidence that a financial asset or
a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if, and
only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial
recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows
of the financial asset or the group of financial assets that can be reliably estimated.
Evidence of the impairment may include indicators that the debtor or a group of debtors is experiencing significant
financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy
or other financial reorganization and where observable data indicates that there is a measurable decrease in the
estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
The amount of loss is measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of
the asset is reduced and the amount of the loss is recognized in the profit and loss account. If, in a subsequent period,

the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after
the impairment was recognized, the reversal of the previously recognized impairment loss is recognized in profit and
loss account.
5.9 Trade and other payables
Creditors relating to trade and other payables are carried at cost which is the fair value of the consideration to be paid
in the future for goods and services received, whether or not billed to the Company.
5.10 Provisions
A provision is recognized in the balance sheet when the Company has a legal or constructive obligation as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of obligation.
5.11 Taxation
Current
Provision for the current tax is based on the taxable income for the year determined in accordance with the provisions
of the Income Tax Ordinance, 2001. 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 after taking into account tax credits, rebates and exemptions, if
any. 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 provided in full using the balance sheet liability method on all temporary differences arising at the
balance sheet date, between the tax bases of the assets and liabilities and their carrying values. Deferred tax assets
are recognized for all deductible temporary differences to the extent that it is probable that future taxable profits will
be available against which the temporary differences can be utilized.
The carrying amounts of all deferred tax assets are reviewed at each balance sheet date and reduced to the extent, if
it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax assets to
be utilized.
Deferred tax is calculated at the rates that are expected to apply to the year when the differences reverse based on
tax rates that have been enacted or substantially enacted by the balance sheet date.
5.12 Revenue recognition
Sale of goods - Local
Revenue is recognized when the significant risks and rewards of ownership of the goods is transferred to the buyer at
the time of issuance of delivery challan.
Sale of goods - Export
Revenue from export of goods is recognized at the time of issuance of bill of lading.
Profit on bank deposit
Profit earned on saving and deposit accounts is accrued on time proportion basis by reference to the principal
outstanding at the applicable rate of return.

5.13 Staff retirement benefits

Defined benefit plan
During the year, the Company operates funded defined benefit gratuity plan for all of its permanent employees. Under
this plan, gratuity is paid to the retiring employees on the basis of their last drawn gross salary for each completed year
of service.
Experience adjustments are recognized in other comprehensive income when they occur. Amounts recorded in profit
and loss are limited to current and past service cost, gains or losses on settlements, and net interest income (expense).
All other changes in net defined benefit liability are recognized in other comprehensive income with no subsequent
recycling to profit and loss account.
The distinction between short term and other long term employee benefits is based on the expected timing of settlement
rather than the employees’ entitlement to benefits.
5.14 Foreign currency translation
Foreign currency transactions are recorded at the rate of exchange prevailing on the date of transactions. Monetary
assets and liabilities in foreign currencies are translated into Pak rupees at the rate of exchange prevailing at the
balance sheet date.
Profit or loss arising on translation are recognized in the profit and loss account.
5.15 Borrowing costs
Borrowing costs are recognized as an expense in the period in which these are incurred except to the extent of
borrowing costs that are 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. Such borrowing costs
are capitalized as part of the cost of the qualifying asset.
5.16 Pricing for related party transactions
All transactions with related parties and associated undertakings are entered into arm’s length determined in accordance
with comparable uncontrolled price method.
Parties are said to be related if they are able to influence the operating and financial decisions of the Company and vice
versa.
5.17 Operating segments
For management purposes, the Group is organized into business units based on its products and services and has two
reportable segments, as follows:
- Oleo chemicals and chlor alkali

- Coating emulsion and resins
Segment reporting is based on the operating (business) segments of the Group. An operating segment is a component
of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues
and expenses that relate to transactions with any of the Company’s other components. An operating segment’s
operating results are reviewed regularly by the Chief Executive Officer (CEO) to assess segment’s performance, and for
which discrete financial information is available. Segment results that are reported to the CEO include items directly
attributable to a segment as well as those that can be allocated on a reasonable basis.


5.18 STANDARDS ISSUED BUT NOT YET EFFECTIVE
The following standards, amendments and interpretations with respect to the approved accounting standards
as applicable in Pakistan would be effective from the dates mentioned below against the respective standard or
interpretation:
Effective date
(annual periods
Standard or Interpretation beginning on or after)

IFRS 2 Share-based Payments – Classification and Measurement of January 01, 2018
Share-based Payments Transactions (Amendments)
IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other January 01, 2016
Entities and IAS 28 Investment in Associates – Investment Entities:
Applying the Consolidation Exception (Amendment)
IFRS 10 Consolidated Financial Statements and IAS 28 Investment in Associates and Not yet finalized
Joint Ventures - Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture (Amendment)
IFRS 11 Joint Arrangements - Accounting for Acquisition of Interest in Joint Operation January 01, 2016
(Amendment)
IAS 1 Presentation of Financial Statements - Disclosure Initiative (Amendment) January 01, 2016
IAS 7 Financial Instruments: Disclosures - Disclosure Initiative - (Amendment) January 01, 2017
IAS 12 Income Taxes – Recognition of Deferred Tax Assets for Unrealized losses
(Amendments) January 01, 2017
IAS 16 Property, Plant and Equipment and IAS 38 intangible assets - Clarification January 01, 2016
of Acceptable Method of Depreciation and Amortization (Amendment)
IAS 16 Property, Plant and Equipment IAS 41 Agriculture - Agriculture: Bearer Plants January 01, 2016
(Amendment)
IAS 27 Separate Financial Statements – Equity Method in Separate Financial Statements January 01, 2016
(Amendment)
The above standards and amendments are not expected to have any material impact on the Company’s financial
statements in the period of initial application.
In addition to the above standards and amendments, improvements to various accounting standards have also been
issued by the IASB in September 2014. Such improvements are generally effective for accounting periods beginning on
or after 01 January 2016. The Company expects that such improvements to the standards will not have any material
impact on the Company’s financial statements in the period of initial application.
Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of
applicability in Pakistan.
IASB Effective date

(annual periods
Standard beginning on or after)

IFRS 9 – Financial Instruments: Classification and Measurement January 01, 2018
IFRS 14 – Regulatory Deferral Accounts January 01, 2016
IFRS 15 – Revenue from Contracts with Customers January 01, 2018
IFRS 16 – Leases January 01, 2019

6 BUSINESS COMBINATIONS AND ACQUISITION OF NON-CONTROLLING INTEREST
6.1 Acquisition during current year

As mentioned in Note 1.2, the Group acquired control in Nimir Resins Limited (formerly Descon Chemicals Limited). The
Group acquired control in said company to diversify its product portfolio and increase its market capitalization.
The Group has elected to measure the non-controlling interest in the acquiree at proportionate value.
Assets acquired and liabilities assumed:
The fair values of identifiable assets and liabilities of Nimir Resins Limited (formerly Descon Chemicals Limited) as at
the date of acquisition were:
Fair value recognized

ASSETS on acquisition
(Rupees)
Non Current Assets
Property, plant and equipment 472,817,382
Intangible 16,172,604
Long term deposits 7,649,956
Retirement benefit asset – prepayments 2,342,719
498,982,661
Current Assets
Stores, spares and loose tools 11,643,400
Stock in trade 262,830,457
Trade debts 261,724,812
Loans and advances 14,875,773
Tax refunds due from government 108,761,400
Trade deposits, short term prepayments and other receivables 30,288,822
Cash and bank balances 66,286,276
756,410,940

Total Assets 1,255,393,601

LIABILITIES

Long term financing from banking companies 179,300,000
Long term financing from director 122,000,000
Deferred tax liability 25,577,456
326,877,456
Current Liabilities
Trade and other payables 235,215,432
Accrued mark up 2,675,020
Unclaimed dividend 292,819
Short term borrowings 425,700,000
Provision for taxation 7,628,502
671,511,773

Total Liabilities 998,389,229

Net assets at acquisition 257,004,372
Non-controlling interest (64.57% of net assets) (165,947,723)
Gain on acquisition of subsidiary (86,455,567)
Purchase consideration transferred 4,601,082

Cash flow
on acquisition
(Rupees)

Net cash acquired with the subsidiary 66,286,276
Cash paid (4,601,082)
Net cash flow on acquisition 61,685,194
From the date of acquisition, Nimir Resins Limited has contributed Rs. 1,021,701,529 of revenue and Rs. 37,749,202 to
the profit before tax from continuing operations of the Group. If the combination had taken place at the beginning of the
year, revenue from continuing operations would have been Rs. 1,778,018,742 and the profit from continuing operations
for the Group would have been Rs. 72,878,496.
Subsequent to acquisition, the Group has acquired further shares as disclosed in Note 1.3.
6.2 Material partly-owned subsidiaries
Financial information of subsidiaries that have material non-controlling interests is provided below:
Proportion of equity interest held by non-controlling interests (NCI):
Name of subsidiary Group NCI Country of Financial

shareholding shareholding incorporation year end
% %
Nimir Management (Private) Limited (NMPL) 51 49 Pakistan 30 June

Nimir Resins Limited (NRL) 37.44 62.56 Pakistan 30 June
Accumulated balances of material non-controlling interest:
Name of subsidiary 2016 2015

(Rupees)
Nimir Management (Private) Limited 2,038,663 –
Nimir Resins Limited 204,153,804 –
Profit allocated to material non-controlling interest:
Nimir Management (Private) Limited (4,519,819) –
Nimir Resins Limited 22,685,836 –
The summarized financial information of these subsidiaries is provided below. This information is based on amounts
before inter-company eliminations.
Summarized statement of profit or loss:
2016 2015
NMPL NRL NMPL NRL
(Rupees) (Rupees)
Revenue – 1,021,701,529 – –
Cost of sales – (888,797,326) – –
Distribution costs – (20,820,474) – –
Administrative expenses (7,771,672) (40,398,162) – –
Other expenses – (17,613,896) – –
Other income – 19,247,505 – –
Finance cost (1,452,448) (20,569,974) – –
(Loss)/Profit before tax (9,224,120) 52,749,202 – –
Tax – (15,751,932) – –
(Loss)/Profit after tax (9,224,120) 36,997,270 – –
Total comprehensive (loss) income (9,224,120) 36,393,166 – –
Attributable to non-controlling interests (4,519,819) 22,685,836 – –
7 ISSUED, SUBSCRIBED AND PAID UP CAPITAL

2016 2015 Note 2016 2015
No. of shares (Rupees) (Rupees)

110,590,546 110,590,546 Ordinary shares of Rs. 10 each fully paid in cash 1,105,905,460 1,105,905,460

8 LONG TERM LOANS


Term finance - secured I 8.1 93,750,000 131,250,000
Term finance - secured II 8.2 175,000,000 –
Term finance - secured III 8.3 75,000,000 –
Syndicated term finance - secured IV – 65,333,310
Loan from associated Company 8.4 40,631,688 –
Loan from associated persons 8.5 58,916,348 –
Loan from directors 8.6 99,248,678 –
542,546,714 196,583,310

Less: current maturity shown under current liabilities (100,000,000) (102,833,310)
442,546,714 93,750,000

Shariah compliant arrangement – –
442,546,714 93,750,000

KIBOR plus 200 bps per annum repayable in 48 monthly instalments starting from December 2013 with grace period of
one year. This facility is secured against first pari passu charge over present and future fixed assets of the Company.

of nine months. This facility is secured against first pari passu charge over present and future fixed assets of the
Company.

of six months. This facility is secured against first joint pari passu charge over present and future fixed assets of the
Company.

8.4 This represents long term loan obtained from associated company of Nimir Management (Private) Limited during the
year. This loan is interest free and repayable on demand on the option of the lender, as per terms of the agreement.

8.5 This represents long term loans obtained from other directors of Nimir Management (Private) Limited during the year.
These loans are interest free and repayable on demand on the option of the lenders, as per terms of the agreement.

8.6 This represents long term loans obtained from directors/sponsors of Nimir Resins Limited (formerly Descon Chemicals
Limited) during the year. These loans are interest free and repayable on demand on the option of the lender, as per
terms of the agreement.
9 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

The interest rates used as the discounting factor (i.e. implicit in the lease) range from 1 month KIBOR plus 175 bps to 1 Year
KIBOR plus 150 bps (2015: 3 months KIBOR plus 200 bps to 6 months KIBOR plus 275 bps). The amount of future payments
and the period during which they will become due are:
2016 2015
(Rupees) (Rupees)
Year ending 30 June

2016 – 25,313,736
2017 39,232,107 26,597,448
2018 39,501,442 24,454,865
2019 42,471,056 27,009,218
2020 15,038,918 –
2021 16,523,199 –
152,766,722 103,375,267

Less: Future finance charges (19,687,743) (13,432,059)
133,078,979 89,943,208

104,377,393 72,005,702

9.1 The lease agreements have the option for purchase of asset at the end of the lease period. There are no financial
restrictions in the lease agreement.

9.2 Minimum Lease Payments (MLP) and their Present Value (PV) are regrouped below:
2016 2015
MLP PV of MLP MLP PV of MLP
(Rupees) (Rupees)

Due not later than 1 year 39,232,107 28,701,586 25,313,736 17,937,506
Due later than 1 year but not
later than 5 years 113,534,615 104,377,393 78,061,531 72,005,702
152,766,722 133,078,979 103,375,267 89,943,208

2016 2015
(Rupees) (Rupees)
10 NET DEFINED BENEFIT LIABILITY / (ASSET) - FUNDED GRATUITY

Staff retirement benefit plan- parent
Present value of defined benefits obligation 59,666,550 48,493,178
Less: fair value of plan assets (9,860,682) –
49,805,868 48,493,178

Note 2016 2015
(Rupees) (Rupees)
Staff retirement benefit plan- subsidiary
Present value of defined benefits obligation 8,080,679 –
Less: fair value of plan assets (9,465,021) –
(1,384,342) –

10.1 The amounts recognized in the balance sheet are as follows:

Present value of defined benefits obligation 10.5 67,747,229 48,493,178
Less: Fair value of plan assets 10.6 (19,325,703) –
48,421,526 48,493,178

10.2 The amounts recognized in the profit & loss account are as follows:

Expense recognized in the profit and loss account 10,315,734 9,660,652
10.3 The charge for the year has been allocated as follows:
Cost of sales 27.2 7,938,175 7,840,588

Distribution costs 28.1 670,923 526,081
Administrative expenses 29.1 1,706,636 1,293,983
10,315,734 9,660,652
10.4 Movement in the net liability recognized in the balance sheet are as follows:

Net liabilities at the beginning of the year 48,493,178 41,194,711
Net liabilities assumed through acquisition of subsidiary (2,342,719) –
Expense recognized during the year 9,849,847 9,660,652
Benefits paid (997,700) (2,751,880)
Return on plan assets 340,722 –
Contribution during the year (9,860,682) –
Remeasurements charged to other comprehensive income 2,938,879 389,695
Net liabilities at the end of the year 48,421,525 48,493,178

10.5 Movement in the present value of defined benefit obligation

Present value of defined benefit obligation at the beginning of the year 48,493,178 40,994,681
Present value of defined benefit obligation assumed through acquisition of subsidiary 6,997,138 –
Benefits paid (997,700) (2,551,850)
Remeasurement:
Actuarial gain from changes in financial assumptions 250,412 –
Experience adjustments 2,688,467 389,695
Present value of defined benefit obligation as at June 30 67,747,229 48,493,178

2016 2015
(Rupees) (Rupees)
10.6 Movement in the fair value of plan assets

Fair value of plan assets at the beginning of the year – –
Fair value of plan assets acquired through acquisition of subsidiary 9,339,856 –
Contribution during the year 9,860,682 –
Expected return on plan assets 465,887 –
Return on plan assets (340,722) –
Fair value of plan assets as at June 30 19,325,703 –

10.7 Plan assets composition

Investment in treasury bills 6,199,584 –
Investment in listed shares 2,394,649 –
Cash at bank 10,731,470 –
19,325,703 –

The cost of defined benefit retirement plan (gratuity) is determined using actuarial valuations (projected unit credit
method) performed by an independent actuary. The projected unit credit method, based on the following significant
assumptions, is used for valuation of the plan:

2016 2015

Discount rate for interest cost in profit and loss charge 9.75% 13.25%
Discount rate for obligation 7.25% 9.75%
Expected rates of salary increase in future years 6.25% 8.75%
Retirement assumption Age 60 Age 60

A quantitative sensitivity analysis for significant assumptions on defined benefit obligation is shown as below:
Impact on defined
Sensitivity level Assumption benefit obligation

+100 bps Discount rate 62,495,200
- 100 bps Discount rate 73,834,754
+100 bps Expected increase in salary 73,912,624
- 100 bps Expected increase in salary 62,333,059
The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined
benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The average duration of the defined benefit plan obligation at the end of the reporting period is 8 years for the holding
company and 9.8 years for subsidiary.

During the year, the Holding Company formed a funded gratuity plan, for all its permanent employees, duly approved
by Commissioner Inland Revenue through order no. 7220314 dated May 17, 2016.

10.8 The contribution to the gratuity fund is placed under conventional arrangement.

11 DEFFERED TAX LIABILITY
Note 2016 2015
(Rupees) (Rupees)
This comprises of:

Deferred tax liabilities on taxable temporary differences
Accelerated tax depreciation 300,981,870 247,820,611

Deferred tax assets on deductible temporary differences
Trade debts - provision for doubtful debts (6,004,031) (6,391,389)
Provision against stock (32,661,890) (141,231)
Provision against advance – (461,560)
Provision against others (22,542,636) (2,151,917)
Deferred and unpaid liabilities (28,525,391) (22,749,708)
Tax losses and minimum tax credit carried forward (70,986,364) (156,717,408)
140,261,558 59,207,398

12 TRADE AND OTHER PAYABLES

Creditors 268,422,986 113,003,143
Accrued liabilities 128,600,572 51,194,172
Security deposits 12.1 400,000 400,000
Advances from customers 29,490,687 11,312,779
Withholding tax payable 1,907,040 660,047
Others 8,008,380 382,701
507,118,503 213,202,119

12.1 These represents security deposits from distributors and transporters which, by virtue of agreement, are interest free,
repayable on demand and are used in the normal course of business.

Note 2016 2015
(Rupees) (Rupees)

Less: Payments made during the year (15,803,946) (14,628,751)

Less: Payments made during the year 12.4 – –

12.4 No payment is made during the year as the case regarding collection of Workers Welfare Fund (WWF) by provincial
governments after the passage of the 18th Amendment is pending before The Honourable Supreme Court of Pakistan.

Note 2016 2015
13 SHORT TERM BORROWINGS - SECURED (Rupees) (Rupees)

Conventional arrangement 13.1 1,683,932,637 755,101,502
Shariah compliant arrangement 13.2 220,061,425 95,494,543
1,903,994,062 850,596,045

13.1 The aggregate of short term finance facilities available at period end is Rs. 2,770 million (2015: Rs. 1,625 million). The
rate of mark up ranges from 1 month KIBOR + 15 bps to 6 months KIBOR + 150 bps with no floor and no cap (2015:
1 month KIBOR + 5 bps to 6 months KIBOR + 150 bps with no floor and no cap). The facilities are secured against
joint pari passu charge on the present and future current assets of the Company.
The unutilized facility for opening letters of credit and bank guarantees as at 30 June 2016 amounts to Rs. 750 million
(2015: Rs. 276 million) and Rs. 96 million (2015: Rs. 115 million) respectively.

13.2 The aggregate of short term finance facilities under Shariah compliant arrangements available at period end is
Rs. 1,565 million (2015: Rs. 200 million). The rate of mark up ranges from 1 month KIBOR + 100 bps to 3 months
and 6 months KIBOR + 175 bps with no floor and no cap (2015: 1 month KIBOR + 5 bps to 3 months and 6 months
KIBOR + 125 bps with no floor and no cap). The facilities are secured against joint pari passu charge on the present
and future current assets of the Company.
The unutilized facility for opening letters of credit as at 30 June 2016 amounts to Rs. 693 million (2015: Rs. 169 million).

14 CONTINGENCIES AND COMMITMENTS

14.1 CONTINGENCIES

Holding Company

14.1.1 The income tax authorities raised a tax demand of Rs. 206 million by treating the remission of loan as taxable income
of Rs. 711 million for the tax year 2011. Appellate Tribunal Inland Revenue (ATIR) decided the case in favour of the
Company. The income tax department has filed an appeal in Honourable Lahore High Court against the decision.

14.1.2 Income tax department has amended the Company’s assessment relating to tax year 2009 under section 122(5A) of
the Ordinance, disallowing certain expenses and rejecting a refund amounting to Rs. 20 million against prior periods.
The Company has filed an appeal before Commissioner Inland Revenue (Appeals).

14.1.3 Pending the outcome of above cases, no provision has been made in the financial statements, since the management
of the Company based on the consultant opinion, is confident that the outcome of the appeals will be in the favour of
the Company.

Subsidiary Company

14.1.4 The customs department passed an order under section 25 of the Customs Act in the case of Ravi Resins Limited
(previous name of the Company) creating a demand of Rs. 1.02 million. The tribunal has dismissed the appeal filed
against this order and the management has filed an appeal in the Honourable Lahore High Court that is pending
adjudication. The Company has also filed an application before Alternate Dispute Resolution Committee for the
resolution of this pending issue.

14.1.5 The income tax department has adjusted Rs. 20.163 million in respect of demands raised against the Tax Years 2003,
2004, 2005 and 2006. The Company has not admitted these demands and filed appeals against these adjustments.
No provision has been incorporated in these financial statements as the management is confident that these matters
would be settled in the favor of the Company. The return for Tax Year 2011 and 2014 have been selected for audit
under section 177 of the Income Tax Ordinance, 2001; proceedings in this respect have been initiated by the income
tax department that have not been completed yet. The Company has filed a writ petition before the Honorable Lahore
High Court against the selection of Company’s tax return for tax year 2014.

14.1.6 The Company have filed suits against material supplier and certain customers for the recovery of advance and trade
debts amounting to Rs. 35.653 million. The Company expects a favorable outcome of these suits; therefore, no
provision has been made in these financial statements.

14.2 COMMITMENTS

Commitments in respect of letters of credit and letters of guarantee as at 30 June 2016 are as follows:

2016 2015
(Rupees) (Rupees)

Letters of credit established for the import of raw materials,
spare parts and machinery 464 million 73 million
Letter of guarantee given to SNGPL 99 million 96 million
Letter of guarantee given to PSO 18 million 5 million
Letter of guarantee given to TOTAL PARCO 5 million –

Note 2016 2015
15 PROPERTY, PLANT AND EQUIPMENT (Rupees) (Rupees)

Operating fixed assets 15.1 2,054,997,961 1,503,129,843
Capital work in progress 15.5 194,901,936 125,742,377
2,249,899,897 1,628,872,220


15.3 No assets were sold to the Chief Executive, Directors, Executives or Shareholders holding more than 10% of total
paid-up capital.

Note 2016 2015
15.4 Depreciation for the year has been allocated as under: (Rupees) (Rupees)

Cost of sales 27 142,445,176 111,236,439
Distribution costs 28 1,989,462 2,807,344
Administrative expenses 29 6,918,688 4,688,245
151,353,326 118,732,028
15.5 Capital work in progress 2016 2015

Plant and
Building machinery Others Total Total
(Rupees) (Rupees)
Opening balance – 125,742,375 – 125,742,375 610,647,014

Acquisition of subsidiary – 98,277 – 98,277 –
Additions during the year 19,123,483 174,847,818 28,808,587 222,779,888 201,650,441
19,123,483 300,688,470 28,808,587 348,620,540 812,297,455

Transferred to fixed assets (19,123,483) (124,210,545) (10,384,576) (153,718,604) (686,555,078)
– 176,477,925 18,424,011 194,901,936 125,742,377
16 INTANGIBLE Note 2016 2015

(Rupees) (Rupees)
Software and licenses

Cost:
As at July 01 2,166,500 2,166,500
Acquisition of subsidiary 46,207,435 –
Additions during the year 1,658,684 –
As at June 30 50,032,619 2,166,500

Accumulated amortization:

As at July 01 (1,171,055) (758,038)
Acquisition of subsidiary (30,034,831) –
Amortization during the year 29 (2,359,553) (413,017)
Written off (14,247,295) –
As at June 30 (47,812,734) (1,171,055)

Net book value 2,219,885 995,445

Rate of amortization 10% - 20% 20%

17 LONG TERM DEPOSITS Note 2016 2015
(Rupees) (Rupees)
Security deposits
Leasing companies and banks 17.1 16,753,286 14,538,086
Others 17.2 22,065,798 14,415,842
38,819,084 28,953,928

17.1 Security deposit against assets leased under Shariah compliant arrangement amounts to Rs. 884,300 (2015: Rs. 269,100)

17.2 This includes deposit amounting to Rs. 12.24 million (2015: Rs. 12.24 million) given to WAPDA for dedicated line.

18 STORES, SPARES AND LOOSE TOOLS 2016 2015
(Rupees) (Rupees)
Stores, spares and loose tools
In hand 140,038,837 70,901,854
In transit 1,901,005 928,863
141,939,842 71,830,717
19 STOCK IN TRADE

Raw and packing material
In hand 397,951,694 108,000,870
In transit 428,388,732 383,814,519
826,340,426 491,815,389
Less:
Provision for raw material (10,433,626) –
Provision for onerous contract (76,194,000) –
Provision for packing material (427,973) (427,973)
(87,055,599) (427,973)
739,284,827 491,387,416

Finished goods 391,253,454 267,026,180
Less: Provision for obsolescence (3,144,209) –
388,109,245 267,026,180
1,127,394,072 758,413,596
20 TRADE DEBTS

Unsecured - considered good
Due from customer 20.1 1,224,295,609 482,312,500
Due from associated company 471,953 –
1,224,767,562 482,312,500

Considered doubtful 89,885,224 19,367,842
Provision for doubtful debts 20.2 (89,885,224) (19,367,842)
– –
1,224,767,562 482,312,500
20.1 These customers have no recent history of default. For age analysis of these trade debts, referred to Note 36.1.1

2016 2015
20.2 Provision for doubtful debts (Rupees) (Rupees)

As at July 01 19,367,842 19,367,842
Charge for the year 7,896,243 –
Reversal during the year (261,200) –
As at June 30 89,885,224 19,367,842

20.3 Aggregate amount due from directors, Chief Executive Officer and executives of the Company is Rs. Nil (2015: Rs. Nil).
21 LOANS AND ADVANCES Note 2016 2015

(Rupees) (Rupees)

Considered good - unsecured
Suppliers 101,448,155 28,762,238
Employees against business expenses 3,287,181 1,278,702
Employees against salary 8,117,642 4,840,254
112,852,978 34,881,194

21.1 The above amount does not carry interest.

22 TRADE DEPOSITS AND SHORT TERM PREPAYMENTS

Security deposits 22.1 – 168,950
Due from associated Company 534,557 –
Prepayments 9,406,203 8,741,076
9,940,760 8,910,026

22.1 Security deposits under Shariah compliant arrangement amounts to Rs. Nil (Rs. Nil).

23 OTHER RECEIVABLES

Margin against bank guarantee 23.1 23,976,328 11,716,515
Margin against letters of credit 12,386,050 –
Others 10,151,623 –
46,514,001 11,716,515

23.1 Margin against bank guarantee under Shariah compliant arrangement amounting Rs. Nil (2015: Rs. Nil).

24 TAX REFUNDS DUE FROM GOVERNMENT 2016 2015
(Rupees) (Rupees)

Advance income tax 330,855,767 91,757,549
Sales tax 42,926,229 16,465,032
Federal excise duty refundable 3,748,500 3,748,500
377,530,496 111,971,081

25 CASH AND BANK BALANCES Note 2016 2015
(Rupees) (Rupees)

Cash in hand 3,031,903 389,048
Cash at bank

Current accounts 96,343,893 13,518,186
Saving accounts 25.1 1,774,799 53,663
Term Deposit Certificate 75,000,000 –
173,118,692 13,571,849
Shariah compliant arrangement
Current accounts 31,802,502 157,261
204,921,194 13,729,110
207,953,097 14,118,158

25.1 These carry mark-up rate ranging from 4% to 8% (2015: 4.75%) per annum.

26 SALES

Gross sales

Local sales 7,005,691,683 4,284,995,883
Export sales 1,750,400 –
7,007,442,083 4,284,995,883

Less: Sales tax (1,010,547,056) (621,495,417)
Less: Discounts (93,950) (1,143)

Net sales 5,996,801,077 3,663,499,323

27 COST OF SALES

Raw and packing material consumed 27.1 4,012,818,070 2,657,662,060
Depreciation 15.4 142,445,176 111,236,439
Fuel and power 371,049,312 259,634,704
Stores, spares and loose tools consumed 99,006,971 39,713,733
Repairs and maintenance 31,292,220 16,071,037
Communication 902,025 919,770
Insurance 9,778,763 6,249,518
Provision for obsolescence 5,473,438 –
Services through contract 8,295,795 –
Transportation 2,247,630 –
Other expenses 14,184,754 8,049,380
4,927,523,725 3,244,063,760
Add: Opening stock-finished goods 19 267,026,180 125,584,451
Add: Acquisition of subsidiary 89,043,989 –
Less: Closing stock-finished goods 19 (391,253,454) (267,026,180)
4,892,340,440 3,102,622,031

27.1 Raw and packing material consumed Note 2016 2015
(Rupees) (Rupees)

Opening balance 491,387,416 428,631,409
Purchases 4,112,267,156 2,720,418,067
4,752,102,897 3,149,049,476
Less: closing balance 19 (739,284,827) (491,387,416)
Raw and packing material consumed 4,012,818,070 2,657,662,060

28 DISTRIBUTION COSTS Note 2016 2015

(Rupees) (Rupees)

Repairs and maintenance 265,837 42,940
Communication 354,425 225,723
Insurance 2,429,334 1,641,806
Freight outward 40,853,469 28,109,892
Distribution commission 39,418,800 29,009,837
Packing, carriage and forwarding 9,785,107 183,960
Printing and stationery 143,711 257,860
Depreciation 15.4 1,989,462 2,807,344
Sales promotion expenses 481,546 –
Sampling 63,207 –
Rent, rates and taxes 53,754 –
Utilities 156,837 –
Other expenses 343,183 195,616
125,713,484 76,565,413
29 ADMINISTRATIVE EXPENSES Note 2016 2015

(Rupees) (Rupees)

Fuel and power 842,975 912,206
Repairs and maintenance 1,912,121 916,826
Communications 3,472,628 2,517,303
Insurance 1,359,830 952,178
Rent, rates and taxes 1,576,141 1,307,135
Advertising and sale promotion 2,318,635 544,452
Legal, professional and consultancy charge 22,158,901 3,271,211
Auditors’ remuneration 29.2 2,179,298 1,225,000
Depreciation 15.4 6,918,688 4,688,245
Amortization 16 2,359,553 413,017
Provision for doubtful debts 7,635,043 –
Other expenses 10,377,468 7,252,234
150,749,030 72,252,354


Note 2016 2015
(Rupees) (Rupees)
29.2 Auditors’ remuneration

Audit fee 1,376,168 725,000
Consolidation, reviews and certifications 680,000 430,000
Out of pocket expenses 123,130 70,000
2,179,298 1,225,000
30
OTHER EXPENSES

Workers’ profit participation fund 12.2 35,557,857 15,803,946
Workers’ welfare fund 12.3 14,285,650 6,005,499
Loss on disposal of property, plant and equipment 15.2 46,283 –
Loss on sale of damaged packing material - scrap – 1,513,536
Intangible written off 16 14,247,295 –
64,137,085 23,322,981
31 OTHER INCOME

Non financial assets
Gain on disposal of property, plant and equipment – 1,968,178
Gain on sale of damaged packing material - scrap 30,529 –
Reversal of provision on sales tax refundable – 13,598,057
Indenting commission 2,625,995 –
Rental income 300,000 –
Payables written off 345,759 –
Directors’ loan written off 15,000,000
Miscellaneous income 31.1 107,812 1,546,229

Financial assets
Profit on savings account 31.2 349,788 2,170,751
Profit on term deposit receipt 31.2 306,180 357,539
Gain on acquisition of subsidiary 86,455,567 –
105,521,630 19,640,754

31.1 Income earned under Shariah compliant arrangement amount to Rs. Nil (2015: Rs. Nil).

31.2 Profit earned under Shariah compliant arrangement amount to Rs. Nil (2015: Rs. Nil).

32 FOREIGN EXCHANGE LOSS Note 2016 2015
(Rupees) (Rupees)

Foreign liabilities 32.1 24,139,486 7,778,704

32.1 This include unrealized exchange loss on translation of liabilities in foreign currency amounting to Rs. 897,926 (2015: Rs. Nil).

33 FINANCE COST 2016 2015
(Rupees) (Rupees)
Mark-up on
- Long term loans 24,467,147 25,364,071
- Short term borrowings 73,115,805 70,831,754
Financial charges on lease 6,264,000 5,910,232
Bank charges, fee and commission 8,695,350 4,224,467
112,542,302 106,330,524
34 TAXATION

Current tax
Current year 121,867,362 295,386
Prior year 151,301 (13,273,122)
122,018,663 (12,977,736)
Deferred tax
Relating to the reversal and origination of temporary differences 58,334,981 85,204,004
Expense resulting from reduction in tax rate (1,850,231) 262,592
56,484,750 85,466,596
178,503,413 72,488,860
35 EARNINGS PER ORDINARY SHARE - BASIC AND DILUTED

35.1 Basic

Profit attributable equity holders of the parent 535,641,380 221,779,210
Weighted average number of ordinary shares 110,590,546 110,590,546
Earnings per ordinary share 4.84 2.01

35.2 Diluted

No figure for diluted earning per share has been presented as the Company has not issued any instrument carrying
option which would have an impact on earnings per share when exercised.

36 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES

The main risks arising from the Company’s financial instruments are credit risk, liquidity risk, foreign currency risk, interest
rate risk and equity price risk. The management reviews and agrees policies for managing each of these risks which are
summarized below.

36.1 Credit Risk

Credit risk is the risk which arises with the possibility that one party to a financial instrument will fail to discharge its
obligation and cause the other party to incur a financial loss. The Company attempts to control credit risk by monitoring
credit exposures, limiting transactions with specific counterparties and continually assessing the creditworthiness of
counterparties. The Company does not believe it is exposed to major concentration of credit risk, however to manage
any possible exposure the Company applies approved credit limits to its customers.
The management monitors and limits the Company’s exposure to credit risk through monitoring of client’s credit
exposure review and conservative estimates of provisions for doubtful receivables, if any, and through the prudent
use of collateral policy.

The Company is exposed to credit risk on long-term deposits, trade debts, short term deposits, advances to suppliers,
other receivables and bank balances. The Company seeks to minimize the credit risk exposure through having
exposures only to customers considered credit worthy and obtaining securities where applicable. The maximum
exposure to credit risk at the reporting date is:

Carrying values
2016 2015
(Rupees) (Rupees)

Long-term deposits 38,819,084 28,953,928
Short-term deposits – 168,950
Trade debts – unsecured 1,224,767,562 482,312,500
Advances 101,448,155 28,762,238
Other receivables 46,514,001 11,716,515
Bank balances 204,921,194 13,729,110

The credit quality of financial assets can be assessed by reference to external credit ratings or the historical information
about counter party defaults as shown below:

2016 2015
36.1.1Trade Debts (Rupees) (Rupees)

Other than related parties

Neither past due nor impaired 514,228,299 278,867,673

1-30 days 400,427,468 121,702,641
31-60 days 155,772,710 81,726,256
61-90 days 50,596,421 15,930
Over 90 days 103,270,711 –
710,067,310 203,444,827
Past due and impaired
1-30 days – –
31-60 days – –
61-90 days – –
Over 90 days 89,885,224 19,367,842
89,885,224 19,367,842
1,314,180,833 501,680,342

Related parties

Neither past due nor impaired 470,597 –

1-30 days 1,356 –
31-60 days – –
61-90 days – –
1,356 –
471,953 –

36.1.1.1 The sale to one major customer amounts to Rs. 714,425,524 (2015: Rs. 674,251,186) which represents more
than 10% of the total revenue.

36.1.1.2 As at June 30, 2016, trade debts of Rs. 89.88 million (2015: Rs. 19.37 million) were impaired and provided for.
36.1.2 Bank Ratings 2016 2015

Financial institution Agency Short Term Long term (Rupees) (Rupees)

Albaraka Bank (Pakistan) Ltd. PACRA A1 A 4,714,342 157,261
Bank Al-Habib Limited PACRA A1+ AA+ 22,776,717 –
Deutsche Bank AG Moody’s P-2 Baa2 – 7,531
Habib Bank Limited JCR-VIS A1+ AAA 14,685 614,003
Habib Metropolitan Bank Ltd. PACRA A1+ AA+ 18,994,962 –
MCB Bank Limited PACRA A1+ AAA 462,455 53,663
Meezan Bank Limited JCR-VIS A1+ AA 27,088,160 –
National Bank of Pakistan PACRA A1+ AAA 55,608 (248,078)
Silk Bank Limited JCR-VIS A-2 A- 6,157 5,248
Standard Chartered Bank Ltd. PACRA A1+ AAA 375,265 266,191
The Bank of Punjab PACRA A1+ AA- 130,432,843 12,873,291
204,921,194 13,729,110
36.2 Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its commitments associated with financial liabilities when
they fall due. Liquidity requirements are monitored regularly and management ensures that sufficient liquid funds are available
to meet any commitments as they arise.

Financial liabilities are analysed below, with regard to their remaining contractual maturities.
Maturity Up to Maturity After

One Year One Year Total
(Rupees)

Long term loans 100,000,000 442,546,714 542,546,714
Short term borrowings 1,903,994,062 – 1,903,994,062
Mark up accrued 29,973,118 – 29,973,118
Unclaimed dividend 11,880,099 – 11,880,099

Long term loans 102,833,310 93,750,000 196,583,310
Short term borrowings 850,596,045 – 850,596,045
Mark up accrued 11,989,038 – 11,989,038
Unclaimed dividend 687,266 – 687,266


36.3 Market Risk
36.3.1 Currency Risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates
primarily to the foreign trade payables. However at the year end, there are no material foreign currency balances.
36.3.2 Interest Rate Risk

Interest rate risk arises from the possibility that changes in interest rate will affect the fair value or future cash flows
of financial instruments. The Company is exposed to interest rate risk for loans obtained from the financial institutions
and liabilities against assets subject to finance lease, which have been disclosed in the relevant note to the financial
statements.

If interest rates at the year end, fluctuate by 1% higher / lower, profit for the year would have been Rs. 15.8 million
(2015: Rs. 11.3 million) higher / lower. This analysis is prepared assuming that all other other variables held constant
and the amounts of liabilities outstanding at the balance sheet dates were outstanding for the whole year.

36.4 Capital Management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and
healthy capital ratios in order to support its business and maximize shareholders’ value. The Company manages its
capital structure and makes adjustments to it in the light of changes in economic conditions. Capital includes ordinary
share capital and reserves. The gearing ratio of the Company is 32% (2015: 17%).

36.5 Fair value of financial assets and financial liabilities

IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. As at the balance sheet date, carrying value of
all the financial instruments in the financial statements approximates their fair value. Further, all financial assets and
financial liabilities at balance sheet date are categorized into loans and advances.
37 OPERATING SEGMENT INFORMATION

Oleo chemicals Coating, emulsion Other segments / Inter segment
and chlor alkali and resins unallocated eliminations Total
2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
(Rupees)
Sales 5,011,268,584 3,663,499,323 1,021,701,529 – – – (36,169,036) – 5,996,801,077 3,663,499,323

Cost of sales (4,039,193,383) (3,102,622,031) (888,797,326) – – – 35,650,269 – (4,892,340,440) (3,102,622,031)
Gross profit 972,075,201 560,877,292 132,904,203 – – – (518,767) – 1,104,460,637 560,877,292
Distribution cost (104,893,010) (76,565,413) (20,820,474) – – – – – (125,713,484) (76,565,413)
Administrative expenses (102,295,839) (72,252,354) (40,398,162) – (8,055,029) – – – (150,749,030) (72,252,354)
Other expenses (47,610,703) (23,322,981) (17,613,896) – – – 1,087,514 – (64,137,085) (23,322,981)
Other income 818,657 19,640,754 19,247,505 – 86,542,982 – (1,087,514) – 105,521,630 19,640,754
Foreign exchange loss (24,139,486) (7,778,704) – – – – – – (24,139,486) (7,778,704)
Operating profit 693,954,820 400,598,594 73,319,176 – 78,487,953 – (518,767) – 845,243,182 400,598,594
Finance cost (90,519,682) (106,330,524) (20,569,974) – (1,452,646) – – – (112,542,302) (106,330,524)
Profit before taxation 603,435,138 294,268,070 52,749,202 – 77,035,307 – (518,767) – 732,700,880 294,268,070
Taxation (162,751,481) (72,488,860) (15,751,932) – – – – – (178,503,413) (72,488,860)
Profit for the year 440,683,657 221,779,210 36,997,270 – 77,035,307 – (518,767) – 554,197,467 221,779,210
37.1 Inter segment sales and purchases have been eliminated.

38 TRANSACTIONS WITH RELATED PARTIES

The related parties and associated undertakings comprise parent company, related group companies, directors and key
management personnel. Remuneration of Chief Executive and directors is also shown in Note 39. Transactions with related
parties during the year are as follows;
Nature and Description of

Relationship with the Company Related Party Transaction 2016 2015
(Rupees) (Rupees)

Parent company Dividend Paid 188,011,941 –
Associated company Sale of goods 1,301,344 –
Staff retirement benefits Gratuity Paid 997,700 –
39 REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
Chief Executive Directors Executives

2016 2015 2016 2015 2016 2015
Number of persons 1 1 3 2 35 19
(Rupees)

Remuneration 6,193,548 4,064,516 10,258,064 6,193,548 34,953,901 21,220,852
Housing 2,787,098 1,829,033 4,616,130 2,787,098 15,729,283 9,549,401
Car allowance – – – – 1,076,400 –
Utilities 619,354 406,451 1,025,806 619,352 3,482,118 2,122,067
Bonus 1,703,245 1,536,647 2,845,420 2,304,970 10,944,067 9,301,301
11,303,245 7,836,647 18,745,420 11,904,968 66,185,769 42,193,621
39.1 The Chief Executive Officer, Directors and some executives have been provided with Company maintained cars and
generator sets, further they are also entitled to club membership and reimbursement of medical and entertainment
expenses.

39.2 An amount of Rs. 1,064,000 (2015: Rs. 617,777) was paid to directors on attending the board meetings.

40 NUMBER OF EMPLOYEES 2016 2015

Number of employees as at June 30 247 134
Average number of employees during the year 276 132
41 PRODUCTION CAPACITY IN METRIC TONS

2016 2016 2015 2015
Maximum Actual *Maximum Actual
Capacity (MT) Production (MT) Capacity (MT) Production (MT)

Oleo Chemicals 45,500 44,816 36,000 29,001
Chlor Alkali Products 41,500 40,151 37,000 33,134
Resin Products – 18,861 – –


*The plant production capacity is indeterminable because it is a multi-product plant involving varying processes of
manufacturing.

41.1 The variance between maximum capacity and actual utilization is due to market conditions.

42 POST BALANCE SHEET EVENTS

The Board of Directors at its meeting held on September 29, 2016 has approved a final dividend @ Rs. Nil per share, the
Board had earlier declared and paid interim cash dividends totaling Rs. 2 per share ( i.e. 20%). Therefore total cash dividend
for the year ended 30 June 2016 is Rs. 2 per share (2015: Rs. 1 per share).
43 DATE OF AUTHORIZATION FOR ISSUE

These financial statements were authorized for issue by the Board of Directors on Thursday, September 29, 2016.

PATTERN OF SHAREHOLDING
AS AT JUNE 30, 2016
------Shareholding------
No. of Shareholders From To Total Shares Held

204 1 100 7,740
1,030 101 500 311,283
270 501 1,000 242,495
400 1,001 5,000 1,116,313
109 5,001 10,000 880,924
51 10,001 15,000 635,952
18 15,001 20,000 326,213
17 20,001 25,000 403,760
6 25,001 30,000 173,906
12 30,001 35,000 397,726
3 35,001 40,000 112,812
1 40,001 45,000 42,000
10 45,001 50,000 495,000
3 50,001 55,000 155,312
4 55,001 60,000 231,192
1 65,001 70,000 69,000
1 70,001 75,000 75,000
2 75,001 80,000 154,000
2 80,001 85,000 165,316
2 85,001 90,000 173,281
6 95,001 100,000 600,000
1 105,001 110,000 109,500
1 110,001 115,000 114,500
1 125,001 130,000 130,000
3 130,001 135,000 398,750
1 145,001 150,000 150,000
1 160,001 165,000 164,500
2 170,001 175,000 350,000
1 195,001 200,000 200,000
1 200,000 204,999 205,000
1 245,001 250,000 250,000
1 265,001 270,000 269,000
1 300,001 305,000 300,750
1 305,001 310,000 310,000
1 320,001 325,000 324,000
1 425,001 430,000 426,750
1 460,001 465,000 464,250
1 495,001 500,000 500,000
1 545,001 550,000 550,000
1 570,001 575,000 574,500
1 670,001 675,000 672,500
1 685,001 690,000 685,925
1 995,001 1,000,000 1,000,000
1 1,805,001 1,810,000 1,808,500
1 3,455,001 3,460,000 3,458,000
1 3,995,001 4,000,000 4,000,000
1 6,305,001 6,310,000 6,305,500
1 8,510,001 8,515,000 8,511,750
1 8,920,001 8,925,000 8,924,999
1 62,660,001 62,665,000 62,662,647
2,184 110,590,546

CATEGORIES OF SHAREHOLDERS
AS AT JUNE 30, 2016
S. No. Categories of shareholders Shares held Percentage

1 Directors, Chief Executive Officers, and their spouse and minor childern 6,015,045 5.4390%

2 Associated Companies, undertakings and related parties. (Parent Company) 62,670,647 56.6691%

3 NIT and ICP 1,500 0.0014%

4 Banks Development Financial Institutions, Non Banking Financial Institutions. 2,300 0.0021%

5 Insurance Companies 22,500 0.0203%

6 Modarabas and Mutual Funds 673,624 0.6091%

8 General Public 39,888,206 36.0684%

9 Others (to be specified)
1- Joint Stock Companies 1,243,352 1.1243%

2- Foreign Companies 30,600 0.0277%
3- Leasing Companies 24,010 0.0217%
4- Investment Companies 11,762 0.0106%
5- Others 7,000 0.0063%
110,590,546 100.0000%

SHAREHOLDERS HOLDING 10% OR MORE

S. No. Categories of shareholders Shares held Percentage
1. Nimir Resources (Private) Limited 62,670,647 56.6691%

CATEGORIES OF SHAREHOLDERS
AS AT JUNE 30, 2016
Sr. No. Name No. of Percentage
Shares Held
1. Associated Companies, Undertakings and Related Parties:

1 Nimir Resources (Private) Limited 8,000 0.0072
2 Nimir Resources (Private) Limited 62,662,647 56.6618

2. Mutual Funds:
1 CDC - Triustee Akd Opportunity Fund 124 0.0001
2 Golden Arrow Selected Stocks Fund Limited 672,500 0.6081

3. Directors and their Spouse and Minor Children:
1 Mr. Abdul Jalil Jamil - Chairman 13,688 0.0124
2 Mr. Zafar Mahmood - Chief Executive Officer 145,125 0.1312
3 Mr. Aamir Jamil 175,750 0.1589
4 Mr. Muhammad Yahya Khan 4,109,526 3.7160
5 Mr. Saeed Uz Zaman 250,781 0.2268
6 Mr. Imran Afzal 464,250 0.4198
7 Mr. Muhammad Sajid 134,500 0.1216
8 Mr. Mohsin Tariq 1,000 0.0009
9 Mr. Saqib Raza 1,000 0.0009
10 Mr. Abdul Jaleel Shaikh - Nominee of Pak Brunai Invst. Co. – 0.0000
11 Mr. Khalid Siddiq Tirmizey - Nominee Of BOP – 0.0000
12 Mrs. Nusrat Jamil W/o A. Jalil Jamil 719,425 0.6505

4. Executives: 201,000 0.1818

5. Public Sector Companies & Corporations: – –

6. Banks, Development Finance Institutions, Non Banking Finance Companies, 49,810 0.0450
Insurance Companies, Takaful, Modarabas and Pension Funds:

7. Shareholders holding five percent or more voting intrest in the listed Company:

S. No. Name Holding Percentage

1 Nimir Resources (Private) Limited 62,670,647 56.6691
2 Mr. Nadeem Nasir 8,924,999 8.0703
3 Mrs. Shaheen Nadeem 8,511,750 7.6966
4 Mr. Ahmad Masood Khan 6,305,500 5.7017

8. All trades in the shares of the listed company, carried out by its Directors,
Executives and their spouses and minor children are as follows:

S. No. Name Sale Purchase
1 Mr. Aamir Jamil – 175,000

2 Mr. Muhammad Yahya Khan – 109,500
3 Mr. Imran Afzal – 41,000
4 Mrs. Nusrat Jamil W/o A. Jalil Jamil 367,000 –

STATEMENT PURSUANT TO SECTION 218
OF THE COMPANIES ORDINANCE, 1984
TO ALL MEMBERS OF THE COMPANY
Dear Sir / Madam,
This is to inform you that the Board of Directors in their meeting held on September 29, 2016 has fixed the remuneration of Chief
Executive Officer (CEO) and Executive Directors of the Company. In pursuant of Section 218 of the Companies Ordinance, 1984,
this is to inform you that the terms and conditions of Chief Executive Officer (CEO) and Executive Directors of the Company are in
accordance with their terms of service with the Company policy.
The Board of Directors had decided the remuneration of CEO and Executive directors for which the following resolutions were
passed:
Resolved that “subject to approval of shareholders, the annual remuneration of Chief Executive Officer of the Company
be and is hereby increased to Rs. 11.40 million per annum exclusive of existing perquisites, bonus, Company maintained
cars, genset, club membership reimbursement of actual medical expenses, travelling, entertainment and other incidentals
relating to his office in accordance with the Company policy.”
Chief Executive Officer, being interested did not participate in this resolution
Further Resolved “subject to approval of shareholders, the annual remuneration of each Executive Director of the Company
be and is hereby increased to Rs. 8.64 million per annum exclusive of existing perquisites, bonus, Company maintained
cars, genset, club membership reimbursement of actual medical expenses, travelling, entertainment and other incidentals
relating to his office in accordance with the Company policy.”
The Executive directors being interested did not participate in this resolution.
Yours faithfully,
For Nimir Industrial Chemicals Limited
Lahore Muhammad Inam-ur-Rahim

September 29, 2016 Company Secretary

NOTICE OF 23rd ANNUAL GENERAL MEETING
Notice is hereby given that the 23rd Annual General Meeting of Nimir Industrial Chemicals Limited (the “Company”) shall be held
on Monday, October 31, 2016 at 11:00 a.m. at Qaser-e-Sultan, Lahore – Faisalabad By-pass, near Housing colony, Sheikhupura to
transact the following business:
ORDINARY BUSINESS:
1. To confirm the minutes of the last Extra-Ordinary General Meeting (EOGM) of the Company held on Tuesday, December 29,
2015.
2. To receive, consider and adopt the audited accounts of the Company for the year ended June 30, 2016 together with the
reports of the Directors’ and Auditors’ thereon.
3. To appoint Auditors for the year ended June 30, 2017 and fix their remuneration. The retiring auditors M/s Ernst & Young
Ford Rhodes Sidat Hyder – Chartered Accountants have offered themselves for re-appointment.
SPECIAL BUSINESS:
4. To consider and approve the remuneration of Chief Executive Officer and Executive Directors.
OTHER BUSINESS:
5. To transact any other business with the permission of the chair.

By Order of the Board
Lahore Muhammad Inam-ur-Rahim

October 8, 2016 (Company Secretary)
Notes:
i. The share transfer books of the Company shall remain closed from October 25, 2016 to October 31, 2016 (both days
inclusive). Transfers received in order at the office of the Company’s shares registrar at the close of business on
Monday, October 24, 2016 will be treated in time for purpose of determine the entitlements attend and vote at the
AGM.
ii. A member eligible to attend and vote at this meeting is entitled to appoint another member as his/her proxy to attend
and vote instead of him/her. A proxy must be a member of the Company and shall produce his/her original Computerized
National Identity Card (CNIC) or passport at the time of meeting. Proxies in order to be effective must be received at
the registered office of the Company not later than forty eight (48) hours before the time of holding the meeting.
iii. The corporate shareholders shall nominate someone to represent them at the AGM. The nominations, in order to be
effective must be received by the Company not later than forty eight (48) hours before time of holding the meeting.
iv. Any individual beneficial owner of Central Depository Company of Pakistan Limited (CDC), entitled to attend and vote
at this meeting, must bring his/her original CNIC or passport, Account and participants’ I.D numbers to prove his/her

identity, and in case of proxy must enclose an attested copy of his / her CNIC or passport. Representatives of corporate
members should bring the, Board resolution/power of attorney with specimen signature (unless it had been provided
earlier) along with the proxy form to the Company.
v. All shareholders who had not yet submitted the valid copies of CNIC and NTN Certificate(s) are requested to send the
copies of the same to the Shares Registrar. Shareholders of the Company who holds shares in scrip-less form on CDC
are requested to submit/send valid copies of CNIC and NTN Certificate(s) directly to their CDC participant (brokers)/
CDC Investor Account Services.
vi. Shareholders are requested to immediately notify change in address, if any, to the Company’s Share Registrar, at the
following address :
M/s Corplink (Pvt.) Limited

Wings Arcade, 1-K (Commercial), Model Town, Lahore.
Tel : 042 35916714, 35916719, 35839182. Fax : 042 35869037
www.corplink.com.pk

Submission Of CNIC - (Mandatory)
With reference to the notification of Securities and Exchange Commission of Pakistan (SECP), SRO 779(I)/2011, dated August 18,
2011, the Members/Shareholders who have not yet submitted photocopy of their valid Computerized National Identity Card (CNIC)
to the Company are required to send the same at the earliest directly of the Company’s Share Registrar, M/s Corplink (Pvt.) Limited.
Kindly comply with the request, as the CNIC number would be printed on all future dividend warrants. In case of non-receipt of
the copy of valid CNIC and non-compliance of the above mentioned SRO of SECP, the Company may be constrained to withhold
dispatch of dividend warrant in the future.
The statement of material facts under section 160 (1) (b) of the Companies Ordinance, 1984 concerning the special business
contained in item No. 4 of the Notice of Annual General Meeting.

ITEM No. 4
i. To consider and approve the increase in the annual remuneration of Chief Executive Officer of the Company to Rs. 11.40
million per annum as approved by the Board exclusive of existing perquisites, bonus, Company maintained cars, genset,
club membership, reimbursement of actual medical expenses, travelling, entertainment and other incidentals relating
to his office in accordance with the Company policy.
ii. To consider and approve the increase in the annual remuneration of each executive Director of the Company to Rs. 8.64
million per annum as approved by the board in addition to the existing perquisites, bonus, Company maintained cars,
genset, club membership, reimbursement of actual medical expenses, travelling, entertainment and other incidentals
relating to his office in accordance with the Company policy.
Nimir Industrial Chemicals Ltd.100

FORM OF PROXY 23rd ANNUAL GENERAL MEETING
Annual Report 2016

Nimir Industrial Chemicals Ltd.
NIMIR INDUSTRIAL CHEMICALS LTD.
14.8 Km., Sheikhupura-Faisalabad Road,
Mouza Bhikhi, District Sheikhupura, Pakistan
Ph: +92 56 3883001-7 • Fax: +92 56 3883010
www.nimir.com.pk

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Annual Report

Annual Report 2016

Board of Directors Legal Advisor

Nimir Industrial Chemicals Ltd. 2

3 Annual Report 2016

The external sector has become more stable on account of

The private sector in Pakistan has taken maximum advantage

The country’s positive economic growth also impacted the

It is the dedication of the management team and staff at NICL

I wish them all the success and Allah’s blessings to keep

Abdul Jalil Jamil

Nimir Industrial Chemicals Ltd. 4

In keeping with the trend of its leadership role in the chemicals

Furthermore, the company made investments in various alternate

With our trend of investing in innovative and sustainable

Finally, we are delighted to report the Company’s acquisition of

5 Annual Report 2016

Sedex is a not for profit membership organisation dedicated to driving

The Roundtable on Sustainable Palm Oil (RSPO) was established in 2004

Good Manufacturing Practices (GMP) in accordance with

Nimir Industrial Chemicals Ltd. 6

Distilled Fatty • Soap noodles

• Tyre and Rubber

• Third party toilet soap

7 Annual Report 2016

Nimir Industrial Chemicals Ltd. 8

9 Annual Report 2016

2012 2013 2014 2015 2016

Non Current Assets 1,213 1,143 1,583 1,659 2,063

Sales- Net 2,678 3,002 3,332 3,663 5,011

Nimir Industrial Chemicals Ltd. 10

11 Annual Report 2016

Nimir Industrial Chemicals Ltd. 12

13 Annual Report 2016

Nimir Industrial Chemicals Ltd. 14

Dividend / Bonus Shares

A pattern of shareholding of the Company is annexed. There was

Necessary returns in this respect filed with the regulatory

15 Annual Report 2016

The independent directors meets the criteria of

19 Annual Report 2016

19. The statutory auditors of the Company have confirmed that

20. The statutory auditors or the persons associated with them

21. The “Closed Period”, prior to the announcement of interim/

21 Annual Report 2016

The responsibility for compliance with the Code is that of the

The Code requires the Company to place before the Audit

Nimir Industrial Chemicals Ltd. 22

(b) in our opinion: Lahore

CHIEF EXECUTIVE OFFICER

TOTAL ASSETS 4,029,141,648 3,152,975,380

Foreign exchange loss 33 (24,139,486) (7,778,704)

Operating profit 693,954,820 400,598,594

Finance cost 34 (90,519,682) (106,330,524)

CHIEF EXECUTIVE OFFICER DIRECTOR

STATEMENT OF CHANGES IN EQUITY

Balance as on July 1, 2014 1,105,905,460 353,121,555 1,459,027,015

CHIEF EXECUTIVE OFFICER DIRECTOR

Nimir Industrial Chemicals Ltd. 28