Pict - Ar 2021

ANNUAL REPORT
2021
Theme On The Cover Contents
Pakistan International Container Terminal Limited [PICT] is the only listed container terminal Page 2 Vision and Mission Page 31 Independent Auditors’ Review Report to
in Pakistan and is part of Global Terminal Operators, International Container Terminal Page 3 Core Values the Members on Statement of Compliance
Services Inc. PICT operates an important segment of the overall trade cycle and witnesses Page 4 Company Information Page 32 Statement of Compliance with the Listed
Page 6 Profile of the Board of Directors Companies (Code of Corporate Governance)
prosperous trading growth, particularly in Pakistan's high value-added exports. To ensure
Page 9 Chairman’s Review Regulations, 2019
that PICT remains the leading "Terminal of Choice" for export and overall commerce at
Page 10 Page 35 Independent Auditors’ Report to the Members
Karachi Port, it provides meticulous devotion to its clientele through dedicated customer
Page 11 Directors’ Report on Audit of the Financial Statements
centric services.
Page 29 Page 40 Financial Statements
Page 30 Key Operating & Financial Data Page 77 Pattern of Shareholding
Bauan International Port, Inc.

Cavite Gateway Terminal
Operadora Portuaria Centroamericana Davao Integrated Port and Stevedoring Services Corp.
Hijo International Port Services, Inc.
Laguna Gateway Inland Container Terminal
Manila Harbor Center Port Services, Inc.
Manila International Container Terminal
Manila North Harbor Port, Inc.
Mindanao Container Terminal
South Cotabato Integrated Port Services, Inc.
Subic Bay International Terminal Corp.
Growth
Our purpose in doing our work is to grow:

grow as individuals, expand as a business,
and progress as a global organisation.
More than sustaining lives, we work
because of self-worth and dignity. As we
further improve ourselves personally and
professionally, we believe that the stability
and continuous growth of PICT follows
Diligence Core Compassion

Values
We work hard at our tasks, believing in We care; we respect. We support each other
performing dutifully, and in committing to first- to ensure that PICT remains viable, and that
rate work. Beyond duty, we are willing to go relations with stakeholders of the port
the extra mile. Our company has no room for community are stable. We work to sustain our
mediocrity. Focused, punctual and dedicated families, pay our dues, or help a relative or a
are a few indisputable attributes PICT neighbor in need. We value and strive to
employees possess promote workplace harmony, recognising the
vital role that interdependence has played in
PICT's ceaseless effort to achieve excellence
Accountability
We value our work and take responsibility

for our actions. We also carry a positive
attitude, believing that by working with
optimism and self-fulfillment, we produce
positive results for the company and for
ourselves. PICT management and
employees give worth to being employed
02 03
Company Information
Board of Directors Key Management

Chairman Chief Executive Officer
Mr. Hans-Ole Madsen Mr. Khurram Aziz Khan
(Non-Executive Director)
Directors Chief Financial Officer

Mr. Arnie Dizon Tablante Mr. Muhammad Hunain
(Appointed on January 07, 2022) External Auditors
Mr. Bilal Shahid EY Ford Rhodes
Mr. Gordon Alan P. Joseph Chartered Accountants, 6th Floor,
(Independent Director) Progressive Plaza, Beaumont Road,
Mr. Jacob Christian Gulmann P.O. Box 15541, Karachi-75530
Ms. Lirene Coloquio Mora-Suarez Legal Advisor
(Appointed on January 07, 2022) Usmani & Iqbal, 111/II, 27th Street,
Mr. Rune Rasmussen Phase VI, Khayaban-e-Muhafiz,
(Independent Director) D.H.A, Karachi
Ms. Gigi lluminada Miguel
(Resigned on January 07, 2022) Bankers
Faysal Bank Limited
Company Secretary Habib Bank Limited
Mr. Adil Siddique National Bank of Pakistan
Samba Bank Limited
Audit Committee Standard Chartered Bank (Pakistan) Limited
Chairman United Bank Limited
Mr. Rune Rasmussen
Members Registered & Terminal Office
Mr. Arnie Dizon Tablante Berths 6-9, East Wharf, Karachi Port, Karachi
(Appointed on January 07, 2022)
UAN: +92-21-111 11 7428 (PICT)
Mr. Bilal Shahid
Fax : +92-21-3285-4815
Ms. Gigi lluminada Miguel
(Resigned on January 07, 2022) Email: [email protected]
Website: www.pict.com.pk
Chief Internal Auditor
Mr. Moammar Raza Share Registrar/ Transfer Agent
CDC Share Registrar Services Limited
Risk Management Committee 99-B, Block 'B', SMCHS,
Chairman Main Shahra-e-Faisal,
Mr. Gordon Alan P. Joseph Karachi- 74400
Members Tel: +92-21-111-111-500
Mr. Bilal Shahid Fax: +92-21-34326053
Mr. Hans-Ole Madsen
Human Resource &

Remuneration Committee
Chairman
Mr. Gordon Alan P. Joseph
Members
Mr. Hans-Ole Madsen
Ms. Lirene Coloquio Mora-Suarez
(Appointed on January 07, 2022)
04 05
Profile of the Board of Directors
Mr. Gordon Alan P. Joseph is an Independent Director. Gordon Alan

P. Joseph is the Honorary Consul of Kingdom of the Netherlands to the
Philippines, and concurrently the Chairman of the Executive Committee
Mr. Hans-Ole Madsen has over 36 years of international experience of the Metro Cebu Development Coordinating Board. Mr. Gordan also
within the Port, Shipping & Logistic industry. Mr. Madsen is the Senior serves as Chairman of the Infrastructure and Power Committees of the
Vice President, Regional Head for Europe, Middle East, and Africa of Regional Development Council, for Region VII in the Central Philippines.
International Container Terminal Services Inc. Alongside he is a Director He is also the largest shareholder and CEO of Philpacific Insurance
of several other ICTSI group companies. Mr. Madsen spent 27 years with Brokers, Inc., one of the 10 largest insurance brokers in the Philippines.
the A.P. Moller Maersk Group in various international senior positions Mr. Joseph has a Bachelor's degree from De La Salle University Manilla
in 1979.
Mr. Jacob Christian Gulmann has been with ICTSI since 2013, first as
Director of Business Development and presently as Managing Director of
Mr. Arnie D. Tablante has been associated with ICTSI since 2007. He ICTSI's terminal operations in Onne, Nigeria. Prior to this Mr. Gulmann
is currently serving as the Treasurer, Global Corporate Investor was with the A.P. Moller Maersk Group where he held positions in finance
Relations & Treasury at ICTSI and concurrently is also a Director of and business development. Mr. Gulmann is a graduate of Oxford
South Cotabato Integrated Port Services Inc. He has also served as the University.
Risk and Capital Director of ICTSI. Prior to joining ICTSI, he was already
a seasoned banker, having been connected with Union Bank of the
Philippines. Mr. Tablante received his Master’s Degree in Business
Administration from the Asian Institute of Management, and is a
graduate of BS in Industrial Management Engineering from the De La
Salle University.
Ms. Lirene C. Mora-Suarez has been associated with ICTSI since April
2007. She is currently serving as the Director, Global Corporate Legal
Affairs Department of ICTSI. She is a seasoned lawyer with more than 17
years of experience. She was awarded “2019 Woman Lawyer of the
year”and was Young Lawyer of the Year 2019 finalist by Asian Legal
Business Philippine Law Awards. Ms. Lirene received her Bachelor’s
degree in Law from the University of Philippines.
Mr. Bilal Shahid’s has more than 15 years of diversified professional

experience in the development of seaports, managing port operations,
multinational logistics services, transport, warehousing, stevedoring,
and off-dock container terminal operations. He has been the Director in
numerous companies of the Bilal Group. He is a Certified Public Mr. Rune Rasmussen is an Independent Director, Mr. Rune
Accountant (CPA) from New Jersey, US and also holds B.Sc. in Rasmussen has more than 16 years of extensive Experience in Asset
Accounting from Louisiana State University (LSU). Management, directing large investment projects and portfolios,
business transformations and facilitating change management. He had
been holding senior management roles in Valais Investment
Management, Dexia Bank and Acuma Wealth Management in past. Mr.
Rune holds a Master's degree in economics from University of
Copenhagen.
06 07
08
Chairman’s Review
For the year ended December 31, 2021
Dear Shareholders
On behalf of the Board of Directors, I am pleased to present to you the Annual Report
of Pakistan International Container Terminal Limited for the year ended December 31,
2021.
Industry Overview and Future Outlook
Economies and industries around the world continue to be impacted by Covid-19
disruptions in global supply chains, port congestions, and low vessels schedule
reliability in 2021.
Against all odds, Pakistan's container market grew by almost 11% during the year and
your Company through the untiring efforts of the management, employees, and other
stakeholders managed to outgrow the market growth while keeping the terminal 24/7 operative, with all the
precautionary measures in place.
As we turn towards 2022, the future outlook for the container industry continues to face Covid-19 related
disruptions such as port congestions and vessels schedules unreliability.
Your Company remains determined in providing enduring value for all its stakeholders and endeavors to retain
sustainable market share, through digitally enhanced experience for customers and offering customer-centric
services.
Review of Financial Performance
Facing Covid-19 related business challenges and tough competition, I am pleased that your Company has
shown great resilience and managed to deliver strong financial results in 2021. Your Company recorded a 23%
increase in revenue and a 27% increase in net profit over the same period last year. The year 2021 ended with
Earnings per share of Rs. 31.05.
Governance and Culture Review of Board's Performance
The Board understands that it needs members who bring core competencies, diversity, requisite skills, and
experience for effective governance of the Company. The Board includes diversified professionals having
expertise in the fields of port, shipping & logistics, financial management, strategy, business development, assets
management, business transformations, risk management, and insurance. The Board has also constituted an
independent Audit Committee, Human Resource and Remuneration Committee, and Risk Management
Committee for further strengthening the governance structure of the Company.
The Board acknowledges its responsibilities to maintain effective oversight of the operations of the Company
through quarterly meetings of the Board and its Committees. All the Directors, including the Independent
Directors, fully participated in and made contributions to the decision-making process of the Board.
The Board, its Committees, and individual Directors carried out self-evaluation of their performance during the
year and found it to be satisfactory. The overall aim was to measure the current performance of the Board and
identify areas for improvement in future years.
Acknowledgments
I would like to thank my fellow board members for their active contributions during this year which enabled the
Company in achieving its objectives while continuing to create long-term value for the shareholders. I would also
like to acknowledge our CEO, Mr. Khurram Aziz Khan, his executive team, and all the employees of the Company
for their leadership, commitment, and hard work.
I also express my gratitude to our esteemed investors and other stakeholders including Karachi Port Trust,
Ministry of Maritime Affairs, Securities and Exchange Commission of Pakistan, Pakistan Stock Exchange for their
unwavering support and continued trust in the Company which has enabled PICT to achieve new heights in a
socially responsible manner.
Hans-Ole Madsen
Chairman of the Board
Karachi,
Dated: March 04, 2022
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Directors' Report Directors' Report
During the year, your Company marked a milestone with the

handling of 10-Millionth TEU since its inception. This
milestone is your Company's expression of commitment to
supporting the economic resilience of the country. As we
continue to build our legacy, our vision to become the
container terminal of choice in Pakistan's busiest port city
resonates with our conscious efforts and focused actions
towards improving the ease of doing business, promoting
digitalization, and provision of efficient customer services to
our clientele.
OPERATING AND FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2021
Your Company recorded revenue of Rs. 11,099 million which is 23% higher over the same period last
year. Through operational excellence and cost optimizations, your Company posted a Gross Profit of
Rs 5,160 million. The year ended with a net profit of Rs 3,390 million which was higher by 27% in
comparison to last year. This growth is aided by the increase in revenue by 23% over the same period
last year and an increase in market share.
2021 2020
(Rs. in millions)
Revenue 11,099 9,009
Gross Profit 5,160 4,121
Profit before taxation 4,776 3,764
Profit after taxation 3,390 2,673
Unappropriated profit brought forward 1,184 1,572
Profit available for appropriation 4,574 4,245
Appropriations:
- Final cash dividend for the year-end
December 31, 2020 @ Rs. 5.00 per share (546) (819)
The Board of Directors of Pakistan International Container Terminal Limited are pleased to submit the
Annual Report of your Company including the audited financial statements for the year ended (December 31, 2019 @ Rs. 7.50 per share)
December 31, 2021. - Interim cash dividends for the year-end
December 31, 2021 @ Rs. 23.60 per share (2,576) (2,242)
BUSINESS PERFORMANCE REVIEW (December 31, 2020 @ Rs. 20.54 per share)
Unappropriated profit carried forward 1,452 1,184
The government of Pakistan's nationwide vaccination drives have been effective in reducing positive Basic and Diluted Earnings Per Share 31.05 24.48
Covid-19 cases and its variants. This led to easing out restrictions and lockdowns in 2021 and thereby
guided the economy towards sustainability-based decent growth. The Board is pleased to propose a final cash dividend of 90% i.e., Rs. 9.00 per ordinary share in
addition to the paid interim cash dividends amounting to Rs 23.60 per ordinary share for the approval
Despite being grappled by a multitude of challenges such as Covid-19 disruptions in global supply of the members at the 21st Annual General Meeting to be held on April 19, 2022. These financial
chains, port congestions, and low vessels' schedule reliability, your Company managed to handle statements do not include the effect of the above proposal which will be accounted for in the year in
476,577 containers as compared to 394,458 containers handled during the last year and thereby which it is approved by the members.
outgrew the market growth and increasing its market share to 20%. Excess capacity available with the
competitors still remains a challenge that is being mitigated through various commercial and FURTHER ACQUISITION OF COMPANY'S SHARES BY ICTSI
operational activities.
During the year, ICTSI, the ultimate parent company of your Company, further invested in your
Company and additionally acquired 17,332,267 shares of Pakistan International Container Terminal.
The shareholding of ICTSI in your Company has now increased to 80.41% from 64.54%. This increase
11 12
Directors' Report
in investment of ICTSI reaffirms their commitment to support and improve Pakistan's port industry and Your Company has taken various significant measures including initiatives to reduce emissions, waste
will help your Company in leveraging global expertise and explore for new opportunities to increase management and treatment methods, fire-fighting arrangements, emergency preparedness drills,
shareholder value. dedicated ambulance service, first aid facilities, load testing of equipments, leaky containers storage
area, HSE induction of staff and other associated persons, training, and awareness programs, etc.
FUTURE OUTLOOK
These efforts have not only been recognized through various awards by reputable sources, but your
company has also enabled us to achieve the milestone of 5 million Safe Man-Hours during this year.
The vulnerabilities in the global maritime supply chain, driven primarily by the Covid-19 disruptions and
its knock-on effects on shipping and ports such as port congestions and schedules unreliability may
continue to disrupt supply chains in 2022. These are expected to normalize by the Years 2023-24. CORPORATE SOCIAL RESPONSIBILITY
World Trade Organization expects a 4.0% rise in trade growth in the year 2022 with the total volume of Your Company believes in the socio-economic uplift of society by consciously embracing corporate
global trade remaining below the pre-pandemic trend. Your Company endeavors to retain the social responsibility in its commercial conduct. Guided by its CSR Policy, your Company maintains its
sustainable market share of Karachi Port through digitally enhanced experience for the customers, focus on investing in the communities that it operates in. A walk-through of some of the initiatives your
offering customer-centric services, and delivering enduring value for all its stakeholders. Company has undertaken during the year are indicated below:
CONCESSION AGREEMENT Education
The Board draws your attention to Note 2.3 of the annual audited financial statements which states Your Company voices the phenomenon of academia-industrial partnership for educational uplift and
that the existing Concession Agreement with the Karachi Trust is for a period of twenty-one years youth development. To assist in leveling up standards of societal education and elevate the
commencing June 18, 2002. professional knowledge of young talent, your Company focused on the following:
Based on the precedence existing at Karachi Port whereby KPT has provided early extension in the • Partnered with Maritime Educational Institute for
Concession term and expansion in the infrastructure to another Container Terminal, the Company has youth development.
already taken-up the matter for early extension in Concession term and expansion of infrastructure • Continued facilitation of scholarships on merit-basis
with KPT and other relevant quarters of the Government of Pakistan, since the past several years. In to the talented and deserving students
order to further safeguard the Company's interest against KPT's delayed action, the Company has • Hosted industrial visits for the university students
filed a legal suit before the Honorable High Court of Sindh during December 2021 and has obtained to spread awareness about the maritime industry
interim injunction / stay order for status quo whereby KPT is restrained from terminating the among the youth.
Concession Agreement or inviting bids for award of contract for relevant terminal operation. • Executed Internship as well as Management Trainee
Programs; and
The Company is still in the process of discussions with KPT on the possibilities of renewal / extension of • Sponsored educational material for deserving
the Concession Agreement including period and other commercial terms and conditions; in the wider students to support the underprivileged in their
national interest and interests of both the Company and KPT.
education.
In view of the above, the Company is optimistic about the extension of Concession Agreement and,
accordingly, the financial statements have been prepared on a going concern basis, subject to the Health
inherent uncertainties caused by the above events and conditions that are of critical significance for the
future of the Company Healthcare remains the prime focus of your Company for which various corporate collaborations are
being made consciously. In this regard, your Company took the following steps:
CORPORATE ENVIRONMENTAL SUSTAINABILITY AND IMPACTS OF BUSINESS ON
ENVIRONMENT • Launched an in-house Covid-19 vaccination camp
for employees and customers, for immunization
Health, Safety and Environment [HSE] considerations are an integral part of the day-to-day operations against Covid-19.
of your Company. HSE Management system at your Company includes continuous measurement of • Supported a fund-raising Golf Tournament event to
occupational safety against strict target-setting. In order to ensure minimal impact of terminal support the cause of maternal, neonatal & child
operations on the health and safety of our stakeholders and on the environment, your Company has
achieved an Integrated Management System (IMS) Certification that is consisted of ISO 9001 (Quality healthcare services.
Management System), ISO 14001 (Environmental Management System) & ISO 45001 (Occupational
Health & Safety Management System).
13 14
Directors' Report
• Conducted webinar series titled “Health Talk – Let's Connect to Disconnect Covid-19” and DIRECTORS' RESPONSIBILITY IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL
Anti-Tobacco awareness session for creating Health awareness. CONTROLS
• Conducted Chronic Obstructive Pulmonary Disease [COPD] awareness session for spreading
awareness about the Disease. The Board of Directors acknowledges their responsibility towards the implementation of an effective
internal control environment throughout the organization. The Company has set up an effective and
Community Care and Empowerment efficient Internal Audit function that rigorously monitors the control environment of the Company. This
function conducts comprehensive quarterly reviews of the activities of your Company. Broader targets
Your Company works actively to strengthen surrounding communities and extend purposeful of the said reviews are establishment and observance of internal controls for ensuring operational
assistance to bring them happiness and spread smiles amongst them. During the year, Your Company efficiencies and safeguard of profitability.
performed the following activities:
The activities of the Internal Audit department are overseen by the Audit Committee which regularly
• Observed “International Day of Poverty Eradication, monitors the performance of the department through review of the internal audit reports on a quarterly
Helping Families in Neighboring Communities” and basis and accordingly apprising the Board of its findings and recommendations.
carried out Cloth Distribution Drive for the deserving
families in the terminal vicinity. The Board reviews the Company's financial operations and position at regular intervals by means of
• Your Company has been acknowledged as Valued interim accounts, reports, and other financial information.
Partner By “Robin Hood Army” in their cause of
making food available and accessible to the needy. PATTERN OF SHAREHOLDING
CORPORATE AWARDS AND RECOGNITIONS The Pattern of shareholding as at December 31, 2021, is annexed to this Report.
Your Company's commitment to upholding and improving the business standards and the The Directors, Chief Executive Officer, Executives, and their spouses and minor children have made no
management of the business has been evident through various corporate awards and recognitions. transactions in the Company's shares during the year. Executives for this purpose means Chief
Executive Officer, Chief Financial Officer, Chief Internal Auditor, Company Secretary, and other
Green Supply Chain Award employees of the Company designated as executives by the Board. The Board of Directors has set a
Your Company has focused strategies for upholding sustainable business operations. The continuous threshold of the annual basic salary of Rs. 1,200,000 for terming as Executive.
efforts concentrated towards responsible business conduct have given your Company significant
recognition and a direction of sustainable growth and success of which the Green Supply Chain Award BOARD OF DIRECTORS
is a true reflection. This was presented to your Company at the 11th Annual Sustainable Port &
Shipping, Logistics & Supply Chain Summit.
As of the date of the Directors' Report, the Board of Directors comprises of one female and seven male
Directors. In respect of the executive, non-executive, and independent directors, the Board comprises
Corporate Excellence Award the following:
Value Chain Sustainability and Operational Resilience clubbed
with Corporate Social Responsibility are fundamental a) Independent Directors:
elements of strategizing the commercial growth of your
i. Mr. Gordon Alan P. Joseph
Company. Being lauded with Corporate Excellence Award for
the sixth consecutive year depicts the resolute commitment of ii. Mr. Rune Rasmussen
the Company towards upholding sustainable operations with
due diligence. b) Non-executive Directors
i. Mr. Hans-Ole-Madsen
ii. Mr. Arnie Dizon Tablante
ADEQUACY OF INTERNAL FINANCIAL CONTROLS iii. Mr. Bilal Shahid
Internal controls policy is designed to provide reasonable assurance regarding the effectiveness and iv. Mr. Jacob Christian Gulmann
efficiency of the Company's operations, reliability of financial information, and compliance with v. Ms. Lirene Coloquio Mora-Suarez
applicable laws and regulations. Management ensures efficient and effective Internal Controls by
identifying controls, reviewing pertinent policies/procedures, and establishing relevant control c) Executive Director/Chief Executive Officer
procedures and monitoring systems. The Internal Control System has been designed to provide i. Mr. Khurram Aziz Khan
reasonable assurance to the shareholders and Board of Directors. The Management considers that
the existing Internal Control System is adequate and has been effectively implemented and monitored.
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Directors' Report
All the directors take a keen interest in the proper stewardship of the Company's affairs. During the PARENT COMPANY
year, four Board Meetings, four Audit Committee Meetings, one Human Resource and Remuneration
[HR&R] Committee Meeting, and two Risk Management Committee meetings were held. The names Your Company is a subsidiary of ICTSI Mauritius Limited, whereas its ultimate holding Company is
of Directors and their attendance in Board and Committee meetings held during the year are presented International Container Terminal Services Inc. [ICTSI], a company incorporated in the Philippines.
below: During the year, the shareholding of ICTSI has increased from 64.54% to 80.41%,
Meetings Attended Member of AUDITORS

S.
Name of Director Risk Risk
No Audit HR & R Audit HR & R The present auditors, EY Ford Rhodes, Chartered Accountants stand retired at the conclusion of the
Board Management Management
Committee Committee Committee Committee Committee Committee
upcoming Annual General Meeting and being eligible have offered themselves for reappointment. The
1 Ms. Gigi Iluminada Miguel*** 4 4 - -
P - - Audit Committee has recommended the reappointment of the retiring auditors for the year ending
2 Mr. Gordon Alan P. Joseph 4 - 1 2 P P December 31, 2022, with an increase of up to 10% of the previous year's remuneration. The Board has
-
endorsed the recommendation of the Audit Committee.
3 Mr. Hans-Ole-Madsen 4 - 1 2 P P
-
4 Mr. Jacob Christian Gulmann 4 - - - - -
- RISKS AND UNCERTAINTIES AND THEIR MITIGATIONS
5 Mr. Rune Rasmussen 4 4 - - P - -
6 Mr. Sharique Azim Siddiqui** 3 3 - 2 P - P The Board of Directors through its Risk Management Committee has devised a robust framework of
7 Mr. Zafar Iqbal Awan** 3 - 1 - - P - Enterprise Risk Management Framework. The Company addresses risks individually in the course of
- - P
its business operations and manages the risk in support of the company's vision, mission, goals, and
8 Mr. Bilal Shahid* 1 - - P
objectives as set out in the strategic plans. The management determines response strategies for such
9 Ms. Lirene Coloquio Mora-Suarez**** - - - - - - - risks which include avoid, transfer, reduce or accept strategy. Financial risks have been described in
10 Mr. Arnie Dizon Tablante**** - - - - - - - detail in note 25 to the financial statements that cover credit risk, liquidity risk, foreign currency risk,
interest rate risk, equity price risk, and capital risks.
* Mr. Bilal Shahid was appointed by the Board as Director of the Company on October 14, 2021, in place of Mr. Zafar Iqbal Awan, and member of the
Audit Committee and the Risk Management Committee on October 22, 2021.
** Mr. Sharique Azim Siddiqui and Mr. Zafar Iqbal Awan resigned from the Board of Directors on October 13, 2021.
COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE
*** Subsequent to December 31, 2021, Ms. Gigi Iluminada Miguel resigned from the Board of Directors on January 07, 2022.
**** Subsequent to December 31, 2021, Mr. Arnie Dizon Tablante and Ms. Lirene Coloquio Mora-Suarez were appointed by the Board as Directors on Governance set out by the Listed Companies (Code of Corporate Governance) Regulations, 2019
January 07, 2022, in place of Ms. Gigi Iluminada Miguel and Mr. Sharique Azim Siddiqui respectively. relevant for the year ended December 31, 2021, has been duly complied with. A statement to this
***** The Directors of your company retired on February 24, 2021 and were re-elected in the Extra Ordinary General Meeting conducted on February 24, 2021. effect is annexed with the Annual Report.
The Board places on record its sincere gratitude and appreciation for the leadership and contributions CORPORATE AND FINANCIAL REPORTING FRAMEWORK
made by Ms. Gigi Iluminada Miguel, Mr. Sharique Azim Siddiqui, and Mr. Zafar Iqbal Awan. The Board
welcomes Mr. Bilal Shahid, Ms. Lirene Coloquio Mora-Suarez, and Mr. Arnie Dizon Tablante as • The financial statements, prepared by the management of the Company, present its state of
Directors of the Company. affairs fairly, the results of its operations, cash flows, and changes in equity.
• Proper books of account have been maintained by the Company.
Directors Remuneration Policy • Appropriate accounting policies have been consistently applied in the preparation of financial
statements and accounting estimates are based on reasonable and prudent judgment.
The Board has a duly approved policy for the remuneration of the members of the Board for attending • International Financial Reporting Standards and the Companies Act, 2017, as applicable in
the Board and Committee Meetings, the salient features of which are mentioned below: Pakistan, as also stated in note 2.1 of the financial statements have been followed in the
I- Non-executive Directors: preparation of financial statements.
Each Non-executive director is only entitled to a fee for attending the Board meeting of USD • The system of internal control is sound in design and has been effectively implemented and
one thousand per Board meeting. monitored.
II- Independent Directors: • There are no significant doubts upon the Company's ability to continue as a going concern. As
Each Independent director is only entitled to a fee for attending the Board meeting of USD discussed earlier, the inherent uncertainties related to events and conditions impacting
two thousand per Board meeting and USD one thousand for attending each Committee meeting. Concession Agreement are of critical significance for the future of the Company. The Company
III- Directors are also entitled to reimbursement of expenses incurred in connection to the is optimistic about the extension of Concession Agreement and accordingly financial
attendance of the Board and/or Board Committee meetings. statements have been prepared on a going concern basis. The Auditors have in their Report
Details of remuneration of Directors and the Chief Executive Officer are disclosed in note 27 to the also drawn attention to this matter.
financial statements.
17 18
• There has been no material departure from Pakistan Stock Exchange Limited Regulations
(PSX Regulations).
• A summary of key operating and financial data of last six years is annexed to this Report.
• Information about contribution to the national exchequer in the form of taxes and levies is given
in the respective notes to the Financial Statements.
• The Company operates a contributory Provident Fund Scheme for its eligible permanent
employees. The value of its investments based on the audited accounts as at June 30, 2021, is
Rs. 478 million.
CODE OF CONDUCT
The underlying values of the Company's Code of Conduct are based on honesty, integrity, and
openness along with respect for the human rights and interests of the employees. The Company's
Code of Conduct promotes guidelines on various ethical standards including issues such as conflict of
interest, employee rights, etc. The Board ensures that the Code of Conduct is disseminated to,
understood, and observed by employees. The Code is also available on the Company's website.
MATERIAL CHANGES AND COMMITMENTS
There have been no material changes and commitments affecting the financial position of the
Company which has occurred between December 31, 2021, and the date of this report except the
proposal of final dividend which is subject to approval by the Members at the forthcoming Annual
General Meeting. The effect of such declaration shall be reflected in the next year's financial
statements.
COMMUNICATION
Communication with the members is given high priority. Annual reports are distributed to them within
the time specified in the Companies Act, 2017. The Company also has a website, www.pict.com.pk
which contains up-to-date information on Company's activities and financial reports.
CHAIRMAN'S REVIEW
The Chairman's review included in the Annual Report deals inter alia with the overall performance of the
Board of Directors and the effectiveness of the role played by the Board of Directors in achieving the
Company's objectives for the year ended December 31, 2021. The Board of Directors endorses the
contents of the Chairman's Review.
ACKNOWLEDGEMENTS
The Board would like to extend sincere gratitude and appreciation to its shareholders and customers
for their continued trust and support. The commitment and dedication of our employees are valued
which has been persistently adding to the success of your Company. The Board would also like to
express its appreciation to the Government of Pakistan, the Ministry of Maritime Affairs, the Securities
& Exchange Commission, and other regulatory bodies for their direction and continued support.
For and on behalf of the Board of Directors

Chairman of the Board Chief Executive Officer
Karachi
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- - - - - - - 9
- - - - - - - 10
23 24
25 26
27 28
Key Operating & Financial Data
Statement of Profit or Loss (Rs. in Millions)
Revenue 11,098.67 9,009.17

Gross Profit 5,160.17 4,120.66
Profit Before Taxation 4,775.90 3,764.27
Profit After Taxation 3,389.66 2,672.52
Statement of Financial Position (Rs. in Millions)
Share Capital and Reserves 2,723.48 2,455.59

Current Liabilities 4,051.31 2,318.46
Total Liabilities 4,114.91 2,376.63
Current Assets 5,479.02 3,186.65
Total Assets 6,838.38 4,832.22
Ratios
Earnings Per Ordinary Share (Rs) 31.05 24.48

Break up Value Per Ordinary Share (Rs) 24.95 22.50
Return on Equity (%) 130.90 100.86
Debt Equity Ratio 0:100 0:100
Dividend Payout Ratio (%) 105 104
29 30
Statement of Compliance with the Listed Companies
(Code of Corporate Governance) Regulations, 2019
The Company has complied with the requirements of the Listed Companies (Code of Corporate Governance)
Regulations, 2019 (here-in-after referred as 'the Regulations'') in the following manner:
1. The total number of directors are 7 as per the following:
a) Male: Six (6)
b) Female: one (1)
2. The composition of the Board is as follows:

a) Independent Directors:
i. Mr. Gordon Alan P. Joseph
ii. Mr. Rune Rasmussen
b) Non-executive Directors
i. Mr. Hans Ole Madsen - Chairman of the Board
ii. Ms. Gigi Iluminada Miguel
[Resigned on January 07, 2022. Mr. Arnie Dizon Tablante was appointed in her place on January 07, 2022]
iii. Mr. Jacob Christian Gulmann
iv. Mr. Bilal Shahid
v. Ms. Lirene Coloquio Mora-Suarez
[Appointed on January 07, 2022, in place of Mr. Sharique Azim Siddiqui who resigned on October 13, 2021]
c) Executive Director/ Chief Executive Officer

Mr. Khurram Aziz Khan
* For the purposes of number of Independent Directors on the Board, the Company has not rounded up the fraction in
one-third as one, since the Company contemplates that keeping in view the comparison of the number of non-
executive Directors [five], Chief Executive Officer [One] with number of Independent Directors [two], the Board under
the current composition is adequately independent.
3. The Directors have confirmed that none of them is serving as a director on more than seven listed companies,
including this Company.
4. The Company has prepared a Code of Conduct and has ensured that appropriate steps have been taken to
disseminate it throughout the Company along with its supporting policies and procedures.
5. The Board has developed a vision/mission statement, overall corporate strategy and significant policies of the
Company. The Board has ensured that complete record of particulars of the significant policies along with their
date of approval or updating is maintained by the company.
6. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by the
Board/shareholders as empowered by the relevant provisions of the Companies Act, 2017 (the Act) and the Regulations.
7. The meetings of the Board were presided over by the Chairman. The Board has complied with the requirements of
the Act and the Regulations with respect to frequency, recording and circulating minutes of meetings of the Board.
8. The Board has a formal policy and transparent procedures for remuneration of Directors in accordance with the
Act and the Regulations.
9. During the year no Director has obtained Directors Training Certification.
10. There have been no changes in the position of Chief Financial Officer (CFO), Company Secretary and Head of
Internal Audit during the year.
11. The Chief Financial Officer and the Chief Executive Officer duly endorsed the financial statements before
approval of the Board.
31 32
12. The Board has formed the following committees comprising of members given below:
a) Audit Committee
i. Mr. Rune Rasmussen, Chairman
ii. Ms. Gigi Iluminada Miguel, Member
[Resigned on January 07, 2022]
iii. Mr. Bilal Shahid, Member
b) Human Resource and Remuneration Committee

i. Mr. Gordon Alan P. Joseph, Chairman
ii. Mr. Hans-Ole Madsen, Member
iii. Mr. Zafar Iqbal Awan, Member
[Resigned on October 13, 2021]
c) Risk Management Committee

i. Mr. Gordon Alan P. Joseph, Chairman
ii. Mr. Hans-Ole Madsen, Member
iii. Mr. Bilal Shahid, Member
13. The terms of reference of the aforesaid committees have been formed, documented and advised to the
committees for compliance.
14. The frequency of meetings of the committees were as per the following:
a) Audit Committee [Quarterly]

b) Human Resource and Remuneration Committee [Yearly]
c) Risk Management Committee [Semi-annually]
15. The Board has set up an effective internal audit function that is considered suitably qualified and experienced for
the purpose and is conversant with the policies and procedures of the Company.
16. The statutory auditors of the company have confirmed that they have been given a satisfactory rating under the
Quality Control Review program of the Institute of Chartered Accountants of Pakistan (ICAP) and registered with
the Audit Oversight Board of Pakistan, that they and all their partners are in compliance with the International
Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the ICAP and that they and the
partners of the firm involved in the audit are not a close relative (spouse, parent, dependent and non-dependent
children) of the Chief Executive Officer, the Chief Financial Officer, the Head of Internal Audit, the Company
Secretary or Directors of the company.
17. The statutory auditors or the persons associated with them have not been appointed to provide other services
except in accordance with the Act, the regulations or any other regulatory requirement and the auditors have
confirmed that they have observed IFAC guidelines in this regard; and
18. We confirm that all requirements of regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations have been
complied with.

Chairman of the Board Chief Executive Officer
Karachi
33 34
35 36
37 38
Financial Statements
39 40
Statement of Financial Position Statement of Profit or Loss
As at December 31, 2021 For the year ended December 31, 2021
December 31, December 31, December 31, December 31,

2021 2020 2021 2020
Note -------- (Rs. in thousands) ------- Note -------- (Rs. in thousands) -------
NON-CURRENT ASSETS
Property, plant and equipment 4 1,133,045 1,545,677 Revenue - net 17 11,098,666 9,009,171
Intangibles 5 21,579 45,633
Long-term deposits 5,544 10,424 Cost of services 18 (5,938,493) (4,888,515)
Deferred taxation - net 6 199,190 43,836
1,359,358 1,645,570 Gross profit 5,160,173 4,120,656
CURRENT ASSETS
Stores, spare parts and loose tools - net 7 485,795 437,651 Administrative expenses 19 (576,192) (535,885)
Trade debts - net 8 626,955 672,761
Advances 9 30,159 22,199 Other expenses 20 (27,157) (4,778)
Deposits, prepayments and other receivables 10 203,690 178,954
Short-term investments - net 11 - - Finance costs 21 (713) (617)
Cash and bank balances 12 4,132,425 1,875,085
5,479,024 3,186,650 Other income 22 219,785 184,896
TOTAL ASSETS 6,838,382 4,832,220 Profit before taxation 4,775,896 3,764,272
SHARE CAPITAL AND RESERVES Taxation 23 (1,386,234) (1,091,753)
Issued, subscribed and paid-up capital 13.2 1,091,532 1,091,532
Reserves 13.3 1,631,943 1,364,061 Profit after taxation 3,389,662 2,672,519
2,723,475 2,455,593
NON-CURRENT LIABILITIES -------------- (Rupees) --------------
Deferred Liability 14 63,597 58,166
Earnings per ordinary share - basic and diluted 24 31.05 24.48
CURRENT LIABILITIES
Trade and other payables 15 2,436,143 2,223,884
Unclaimed dividends 71,431 63,704
Unpaid dividends 1,517,481 -
The annexed notes from 1 to 35 form an integral part of these financial statements.
Taxation - net 26,255 30,873
4,051,310 2,318,461
TOTAL EQUITY AND LIABILITIES 6,838,382 4,832,220
CONTINGENCIES AND COMMITMENTS 16
41 42
Statement of Comprehensive Income Statement of Changes in Equity
For the year ended December 31, 2021 For the year ended December 31, 2021
December 31, December 31,

2021 2020 Issued, Capital reserve Revenue reserve
-------- (Rs. in thousands) ------- subscribed Capital Unappropriated Total
Total
and paid-up redemption profits Reserves
capital reserve fund
Profit after taxation 3,389,662 2,672,519
Other comprehensive income - -

Balance as at December 31, 2019 1,572,198 1,752,198 2,843,730
Total comprehensive income 3,389,662 2,672,519
Profit after taxation 2,672,519 2,672,519 2,672,519
Other comprehensive income - - -
Total comprehensive income 2,672,519 2,672,519 2,672,519
Final cash dividend for the year
ended December 31, 2019
@ Rs 7.50/- per ordinary share (818,649) (818,649) (818,649)
Interim cash dividends for the year

@ Rs 20.54/- per ordinary share (2,242,007) (2,242,007) (2,242,007)
Profit after taxation 3,389,662 3,389,662 3,389,662

Other comprehensive income - - -
Total comprehensive income 3,389,662 3,389,662 3,389,662
Final cash dividend for the year

@ Rs 5.00/- per ordinary share (545,766) (545,766) (545,766)
Interim cash dividends for the year

@ Rs 23.60/- per ordinary share (2,576,014) (2,576,014) (2,576,014)
43 44
Statement of Cash Flows Notes to the Financial Statements
For the year ended December 31, 2021 For the year ended December 31, 2021
1. CORPORATE INFORMATION AND OPERATIONS

2021 2020 1.1. Pakistan International Container Terminal Limited (the Company) was incorporated in Pakistan and is
Note -------- (Rs. in thousands) ------- listed on the Pakistan Stock Exchange Limited. The registered office of the Company is situated at
Berths 6 - 9, East Wharf, Karachi Port, Karachi.
CASH FLOWS FROM OPERATING ACTIVITIES 29 5,501,630 4,821,548
1.2. The Company is mainly engaged in providing container terminal management services. Currently the
Taxes paid (1,546,206) (1,224,684) Company has a Build, Operate and Transfer (BOT) “Concession Agreement” with Karachi Port Trust
Compensated absences paid 14.1 (2,068) (5,752) (KPT) for the exclusive construction, development, operations and management of a common user
Finance costs paid (713) (617) container terminal at Karachi Port for a period of twenty-one years commencing June 18, 2002.
Net cash generated from operating activities 3,952,643 3,590,495
1.3. The Company is a subsidiary of ICTSI Mauritius Limited whereas its ultimate parent company is
CASH FLOWS FROM INVESTING ACTIVITIES International Container Terminal Services Inc., a company incorporated in Philippines. The
shareholding of parent company increased from 48.11% to 63.99% during the year.
Capital expenditure (297,563) (127,002)
Proceeds from disposal of operating fixed assets 278 348 2. BASIS OF PREPARATION
Markup on savings accounts received 198,554 148,446
Net cash (used) in / generated 2.1. Statement of compliance
from investing activities (98,731) 21,792
These financial statements have been prepared in accordance with the requirements of approved
accounting standards as applicable in Pakistan. Approved accounting standards comprise of such
CASH FLOWS FROM FINANCING ACTIVITIES
International Financial Reporting Standards (IFRS) issued by the International Accounting Standards
Board (IASB) and Islamic Financial Accounting Standards (IFASs) issued by Institute of Chartered
Dividends paid (1,596,572) (3,052,837) Accountants of Pakistan (ICAP), as are notified under the Companies Act, 2017 (the Act) and
Net cash used in financing activities (1,596,572) (3,052,837) provisions of and directives issued under the Act. In case requirements differ, the provisions and
directives of the Act, shall prevail.
Net increase in cash and cash equivalents 2,257,340 559,450
The Securities and Exchange Commission of Pakistan (SECP) in pursuance of the S.R.O No.
Cash and cash equivalents at the beginning of the year 1,875,085 1,315,635 24(I)/2012 dated January 16, 2012 has given relaxation for the implementation of IFRIC 12 - “Service
Concession Arrangements” due to the practical difficulties facing the companies. The impact on the
Cash and cash equivalents at the end of the year 12 4,132,425 1,875,085 financial results of the Company due to application of IFRIC-12 is disclosed in note 34 to these financial
statements.
2.2. Basis of measurement
These financial statements have been prepared under the historical cost convention unless otherwise
The annexed notes from 1 to 35 form an integral part of these financial statements. specifically stated.
2.3. Expiry of Concession Agreement and Going Concern Assumption
The existing Concession Agreement with KPT is for a period of twenty-one years commencing June
18, 2002.
Based on the precedence existing at Karachi Port whereby KPT has provided early extension in the
Concession term and expansion in the infrastructure to another Container Terminal, the Company has
already taken-up the matter for early extension in Concession term and expansion of infrastructure
with KPT and other relevant quarters of the Government of Pakistan; since the past several years. In
order to further safeguard the Company's interest against KPT's inequitable behaviour, the Company
has filed a legal suit before the Honorable High Court of Sindh during December 2021 and has
obtained interim injunction / stay order for status quo whereby KPT is restrained from terminating the
Concession Agreement or inviting bids for award of contract for relevant terminal operation.
45 46
Notes to the Financial Statements
The Company is still in the process of discussions with KPT on the possibilities of renewal / extension 2.5. Significant accounting judgments, estimates and assumptions
of the Concession Agreement including period and other commercial terms and conditions; in the
wider national interest and interests of both the Company and KPT. The preparation of financial statements in conformity with approved accounting standards requires
the use of certain critical accounting estimates. It also requires management to exercise its judgment
In view of the above, the Company is optimistic about the extension of Concession Agreement and, in the process of applying the Company's accounting policies. Estimates and judgments are
accordingly, these financial statements have been prepared on a going concern basis, subject to the continually evaluated and are based on historic experience and other factors, including expectation of
inherent uncertainties caused by the above events and conditions that are of critical significance for future events that are believed to be reasonable under the circumstances. In the process of applying
the future of the Company. the Company's accounting policies, the management has made the following estimates and
judgments which are significant to the financial statements:
2.4. New standards, amendments to approved accounting standards and new interpretations
a) determining the method of depreciation, residual values and useful lives of operating fixed
There are certain new and amended standards, issued by International Accounting Standards Board
(IASB), interpretations and amendments that are mandatory for the Company's accounting periods assets (note 4.1);
beginning on or after January 01, 2021 but are considered not to be relevant or do not have any b) taxation (note 3.5);
significant effect on the Company's operations and therefore not detailed in these financial c) determining the provision for obsolescence of stores, spare parts and loose tools (note 7);
statements.
d) determining the allowance for expected credit losses (note 8);
2.4.1. Standards, interpretations and amendments to published accounting and reporting e) expected outcome of contingencies (note 16.1); and
standards that are not yet effective:
f) intangibles (note 5).
The following standards, amendments and interpretations with respect to the approved accounting 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
standards as applicable in Pakistan would be effective from the dates mentioned below against the
respective standard or interpretation: 3.1. Property, plant and equipment
Standards, interpretations and amendments Effective date
3.1.1. Operating fixed assets
Property, Plant and Equipment: Proceeds before Intended Use –
These are stated at cost less accumulated depreciation and accumulated impairment losses, if any.
- Amendments to IAS 16 01 January 2022
Onerous Contracts - Costs of Fulfilling a Contract - Amendments to IAS 37 01 January 2022
Consistent with prior years, depreciation is charged to statement of profit or loss using straight line
Classification of liabilities as current or non-current - Amendment to IAS 1 01 January 2023
method so as to write off the historical cost of the assets less their estimated residual values over their
Sale or Contribution of Assets between an Investor and its Associate
estimated useful lives or the remaining term of the Concession Agreement, whichever is lower, at the
or Joint Venture - Amendment to IFRS 10 and IAS 28 Not yet finalized
rates specified in note 4.1 to these financial statements. Depreciation on additions is charged from the
Definition of Accounting Estimates - Amendments to IAS 8 01 January 2023
month in which the asset is available for use and on disposals up to the month the respective asset
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS
was in use. Assets' residual values, useful lives and methods of depreciation are reviewed and
Practice Statement 2 01 January 2023
adjusted, if appropriate, at each reporting date.
Deferred Tax related to Assets and Liabilities arising from a Single
Transaction - Amendments to IAS 12 01 January 2023
The carrying values of property, plant and equipment are reviewed at each reporting date for indication
IFRS 17 - Insurance Contracts 01 January 2023
that an asset may be impaired and carrying values may not be recovered. If any such indication exists
IFRS 3 - Reference to the Conceptual Framework (Amendments) 01 January 2022
and where the carrying values exceed the estimated recoverable amount, the assets or cash
IFRS 9 Financial Instruments – Fees in the '10 per cent' test for
generating units are written down to their recoverable amount. The recoverable amount of property,
derecognition of financial liabilities 01 January 2022
plant and equipment is the higher of fair value less cost to sell and value in use.
IAS 41 Agriculture - Taxation in fair value measurement 01 January 2022
The above standards and amendments are not expected to have any material impact on the Maintenance and normal repairs are charged to statement of profit or loss as and when incurred.
Company's financial statements in the period of initial application. Major renewals and improvements, if any, are capitalised where they meet the definition of property,
plant and equipment.
Further, following new standard has been issued by IASB which are yet to be notified by the SECP for
the purpose of applicability in Pakistan. An item of property, plant and equipment is derecognised upon disposal or when no future economic
IASB Effective date benefits are expected from its use. Gains and losses on disposals are determined by comparing
(annual periods proceeds with the carrying amount of the relevant assets. These are included in the statement of profit
Standard beginning on or after) or loss in the period in which they arise.
IFRS 1 - First-time Adoption of International Financial Reporting Standards 01 July 2009
47 48
3.1.2. Capital work-in-progress
These are stated at cost less any impairment in value. All expenditures connected with specific assets Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are
incurred during installation and construction period including advances to suppliers and contractors recognised for all deductible temporary differences to the extent that it is probable that the future
are carried under this head. These are transferred to specific assets as and when these assets are taxable profits will be available against which the assets may be utilised. Deferred tax assets are
available for use. reduced to the extent that it is no longer probable that the related tax benefit will be realised.
3.2. Intangibles The carrying amount of deferred tax asset is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
An intangible asset is recognised if it is probable that the future economic benefits that are attributable deferred tax asset to be recognised. Unrecognised deferred tax assets are reassessed at each
to the asset will flow to the Company and that the cost of such asset can also be measured reliably.
reporting date and are recognised to the extent that it has become probable that future taxable profit
will allow deferred tax asset to be recovered.
Consistent with prior years, Costs incurred on the acquisition of intangibles are capitalised and are
amortised on straight line basis over their estimated useful life or the remaining term of the Concession
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
Agreement, whichever is lower at the rates stated in note 5.1 to these financial statements.
when the asset is realised or the liability is settled, based on the tax rates (and tax laws) that have been
Amortisation is charged in the month in which the asset is available for use.
enacted or substantively enacted at the reporting date.
Useful lives of intangibles are reviewed, at each reporting date and adjusted if appropriate.
Significant management judgement is required to determine the amount of deferred tax that can be
recognised, based upon the likely timing and the level of future taxable profits. The management
The carrying values of intangibles are reviewed for impairment at each reporting date for events or
consider tax consequences that would follow from the manner in which the entity expects, at the end
changes in circumstances that indicate the carrying value may not be recoverable.
of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
3.3. Stores, spare parts and loose tools
3.6. Loans and borrowings
Stores, spare parts and loose tools are valued at lower of net realisable value and cost. Cost is
determined using first-in-first-out (FIFO) basis except for those in transit which are stated at invoice All loans and borrowings are initially recognised at fair value less directly attributable transaction costs
price plus other charges paid thereon up to the reporting date. Provision is made annually in the and have not been designated 'as at fair value through profit or loss'. After initial recognition, interest
financial statements for slow moving and obsolete items if required. bearing loans and borrowings are subsequently measured at amortised cost using effective interest
rate method.
3.4. Cash and cash equivalents
Gains and losses are recognised in statement of profit or loss when the liabilities are derecognised as
Cash and cash equivalents are carried in the statement of financial position at cost. For the purpose of well as through the amortisation process.
statement of cash flows, cash and cash equivalents consist of cash in hand and balances with banks.
3.7. Provisions
3.5. Taxation
Provisions are recognised when the Company has a present legal or constructive obligation as a result
Current of past events and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate of the amount can be made. Provision are
Provision for current taxation is based on taxable income at the current rates of taxation in accordance reviewed at each reporting date and adjusted prospectively to reflect the current best estimate.
with the Income Tax Ordinance, 2001 after considering rebates and tax credits available, if any, and
includes adjustments to charge for prior years, if any. 3.8. Staff retirement benefits
In making the estimates for income taxes, the Company takes into account the current income tax law The Company operates a recognised provident fund scheme (defined contribution plan) for all its
and decisions taken by appellate authorities on certain issues in the past. There may be various eligible permanent employees. Equal monthly contributions are made by the Company and the
matters where the Company's view differs with the view taken by the income tax department at the employees to the fund in accordance with the rules of the provident fund scheme. Contributions from
assessment stage and where the Company considers that its view on items of a material nature is in the Company are charged to statement of profit or loss for the year.
accordance with the law. The difference between the potential and actual tax charge, if any, is
disclosed as a contingent liability. 3.9. Provision for compensated leave absences
Deferred The Company provides a facility to its employees for accumulating their annual earned leave under an
unfunded scheme.
Deferred tax is recognised using the balance sheet liability method, on all major temporary differences
arising at the reporting date between the tax base of assets and liabilities and their carrying amounts
for financial reporting purposes.
49 50
The classification of financial assets under IFRS 9 is generally based on the business model in which a
Accruals are made to cover the obligation under the scheme on accrual basis and are charged to financial asset is managed and its contractual cash flow characteristics.
statement of profit or loss. Accrual for compensated absences for employees is calculated on the
basis of one month's gross salary. The amount of liability recognised in the statement of financial A financial asset is measured at amortised cost if it meets both of the following conditions and is not
position is calculated by the Company using the above basis. designated as at FVTPL:
3.10. Foreign currency translations • it is held within a business model whose objective is to hold assets to collect contractual cash
flows; and
Foreign currency transactions are translated into Pakistani Rupee (functional currency) using the • its contractual terms give rise on specified dates to cash flows that are solely payments of
exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities in foreign principal and interest on the principal amount outstanding.
currencies are re-translated into Pakistani Rupee using the exchange rate prevailing at the reporting
date. Foreign exchange gains and losses resulting from the settlement of such transactions and from A debt instrument is measured at FVOCI if it meets both of the following conditions and is not
the translations at year end exchange rates of monetary assets and liabilities denominated in foreign designated as at FVTPL:
currencies are taken to statement of profit or loss.
• it is held within a business model whose objective is achieved by both collecting contractual
3.11. Dividend cash flows and selling financial assets; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of
Dividend is recognised as a liability in the period in which it is approved. principal and interest on the principal amount outstanding.
3.12. Impairment of non-financial assets On initial recognition of a debt instrument that is not held for trading, the Company may irrevocably
elect to present subsequent changes in the investment's fair value in statement of other
The carrying value of non-financial assets other than inventories and deferred tax assets are assessed comprehensive income. This election is made on an investment-by-investment basis.
at each reporting date to determine whether there is any indication of impairment. If any such
indications exist, then the recoverable amount is estimated. An impairment loss is recognised, as an All financial assets not classified as measured at amortised cost or FVOCI as described above are
expense in the statement of profit or loss, for the amount by which an asset's carrying amount measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company
exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less cost may irrevocably designate a financial asset that otherwise meets the requirements to be measured at
to sell and value in use. Value in use is determined through discounting of estimated future cash flows amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting
using a discount rate that reflects current market assessments of the time value of money and risk mismatch that would otherwise arise.
specific to the assets. For the purpose of assessing impairment, assets are grouped at the lowest
levels for which they are separately identifiable cash flows (cash generating units). A financial asset (unless it is a trade receivable without a significant financing component that is initially
measured at the transaction price, determined under IFRS 15) is initially measured at fair value plus, for
3.13. Segment reporting an item not at FVTPL, transaction costs that are directly attributable to its acquisition.
These financial statements have been prepared on the basis of single reportable segment which is Subsequent measurement
consistent with the internal reporting of the Company.
For purposes of subsequent measurement, financial assets are classified in four categories:
3.14. Functional and presentation currency
• Financial assets at amortised cost (debt instruments). These are subsequently measured
These financial statements are presented in Pakistani Rupee which is the Company's functional and using the effective interest rate (EIR) method and are subject to impairment. Gains and losses
presentation currency. are recognised in statement of profit or loss when the asset is derecognised, modified or
impaired.
3.15. Financial instruments • Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt
instruments).
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial • Financial assets designated at fair value through OCI with no recycling of cumulative gains
liability or equity instrument of another entity. and losses upon derecognition (equity instruments).
• Financial assets at fair value through profit or loss.
i) Financial assets
Derecognition
Initial recognition and measurement
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar
Under IFRS 9, on initial recognition, a financial asset is classified as measured at: amortised cost; Fair financial assets) is primarily derecognised (i.e., removed from the Company's statement of financial
Value through Other Comprehensive Income (FVOCI) or Fair Value through Profit or Loss (FVTPL). position) when:
51 52
Subsequent measurement
• The rights to receive cash flows from the asset have expired; or
• The Company has transferred its rights to receive cash flows from the asset or has assumed Financial liabilities at fair value through profit or loss
an obligation to pay the received cash flows in full without material delay to a third party under Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
a 'pass-through' arrangement and either (a) the Company has transferred substantially all financial liabilities designated upon initial recognition as at fair value through profit or loss. Gains or
the risks and rewards of the asset, or (b) the Company has neither transferred nor retained losses on liabilities held for trading are recognised in the statement of profit or loss. Financial liabilities
substantially all the risks and rewards of the asset, but has transferred control of the asset. designated upon initial recognition at fair value through profit or loss are designated at the initial date of
recognition, and only if the criteria in IFRS 9 are satisfied.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of Loans and borrowings
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
asset, nor transferred control of the asset, the Company continues to recognise the transferred asset borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are
to the extent of its continuing involvement. In that case, the Company also recognises an associated recognised in statement of profit or loss when the liabilities are derecognised as well as through the EIR
liability. The transferred asset and the associated liability are measured on a basis that reflects the amortisation process.
rights and obligations that the Company has retained.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the
the lower of the original carrying amount of the asset and the maximum amount of consideration that statement of profit or loss. This category generally applies to interest-bearing loans and borrowings.
the Company could be required to repay.
Derecognition
Impairment / expected credit loss (ECL) on financial assets A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
The Company recognises an allowance for ECLs for all debt instruments not held at fair value through different terms, or the terms of an existing liability are substantially modified, such an exchange or
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance modification is treated as the derecognition of the original liability and the recognition of a new liability.
with the contract and all the cash flows that the Company expects to receive. The shortfall is then The difference in the respective carrying amounts is recognised in the statement of profit or loss.
discounted at an approximation to the asset's original effective interest rate.
iii) Offsetting of financial instruments
The Company considers a financial asset in default when contractual payments are 275 days past Financial assets and financial liabilities are offset and the net amount is reported in the statement of
due. However, in certain cases, the Company may also consider a financial asset to be in default when financial position if there is a currently enforceable legal right to offset the recognised amounts and
internal or external information indicates that the Company is unlikely to receive the outstanding there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
contractual amounts in full before taking into account any credit enhancements held by the Company. Income and expense arising from such assets and liabilities are also offset accordingly.
A financial asset is written off when there is no reasonable expectation of recovering the contractual
cash flows. 3.16. Revenue
As per the business principles, revenue from contracts with customers is recognised net of rebates, if
The Company uses the standard's simplified approach and calculates ECL based on life-time ECL on any when the services are rendered to the customer at an amount that reflects the consideration to
its financial assets. The Company has established a provision matrix that is based on the Company's which the Company expects to be entitled in exchange for those services.
historical credit loss experience, adjusted for forward-looking factors specific to the financial assets
and the economic environment. The assessment of the correlation between historical observed The performance obligations of port berth operations are satisfied and payment is generally due upon
default rates, forecast economic conditions and ECL is a significant estimate. The amount of ECL is completion and billing of the services.
sensitive to changes in circumstances and of forecast economic conditions. The Company's historical
credit loss experience and forecast of economic conditions may also not be representative of Other income
3.17.
customer's actual default in the future. The ECLs are recognised in the statement of profit or loss. Profit on deposits / saving accounts are recognised on effective interest rate basis.
ii) Financial liabilities Other income is recognised on accrual basis.
Initial recognition and measurement December 31, December 31,

2021 2020
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or Note -------- (Rs. in thousands) -------
loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an 4. PROPERTY, PLANT AND EQUIPMENT
effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and Operating fixed assets 4.1 857,758 1,457,635
payables, net of directly attributable transaction costs. Capital work-in-progress 4.2 275,287 88,042
1,133,045 1,545,677
53 54
4.1.1. Disposals of operating fixed assets
Gain / (loss)
Particulars on disposals –
------------------------------------------------------------------ (Rs in thousands) ------------------------------------------------------------------ net
Items having written down value

of less than Rs. 5,000,000/-
2021 15,264 14,679 585 278 307
2020 4,900 4,089 811 348 (463)
4.1.2. This includes a leasehold land in the name of the Company having written down value of Rs 5.6 million
(2020: Rs 9.5 million) and area of approximately 6 by 6 acres situated at Deh Mai Gharhi, Tappo
Manghopir, Gadap Town, Karachi which is depreciated over the lease term.

2021 2020
Note -------- (Rs. in thousands) -------
4.1.3. Depreciation charge for the year has been
allocated as under:
Cost of services 18 638,649 620,068
Administrative expenses 19 70,961 68,896
709,610 688,964
4.2. Capital work-in-progress

4.2.1. Movement
Opening balance 88,042 207,442
Additions during the year 266,163 110,507
Transferred to operating fixed assets (78,918) (229,907)
Closing balance 275,287 88,042
------------------------------------------------------------------ (Rs in thousands) ------------------------------------------------------------------
4.2.2. This includes Rs 237.76 million (2020: Rs 33.81 million) in container / terminal handling / workshop
equipment and Rs 28.40 million (2020: Rs 76.70 million) in other assets
2021 2020
4.2.3. Category wise breakup
Leasehold improvements 22,536 42,336
Container / terminal handling /
workshop equipment 236,498 24,428
Port power generation 10,332 306
Vehicles 660 -
Computers and other equipment 5,261 20,504
Furniture and fixtures - 468
275,287 88,042
5. INTANGIBLES
Intangibles 21,579 45,633
55 56

December 31, 2021 2021 2020
Written down TRADE DEBTS - net
As at As at As at As at value as at
January 01, December January 01, December December 31, Unsecured
2021 31, 2021 2021 31, 2021 2021 Considered good 8.2, 8.3 & 8.4 628,430 674,236
Allowance for expected credit losses (1,475) (1,475)
Computer software 241,404 195,771 24,054 219,825 21,579
8.1 626,955 672,761
Project development
cost 37,889 37,889 - 37,889 -
279,293 233,660 24,054 257,714 21,579
The aging of unimpaired trade debts as at December 31 is as follows:
December 31, 2020
Written down
As at As at As at value as at
December January December December 31,
31, 2020 01, 2020 31, 2020 2020
Computer software 241,404 170,772 24,999 195,771 45,633

Related parties 1,348 465 883 - -
Project development
cost 37,889 37,889 - 37,889 - Other than related
279,293 208,661 24,999 233,660 45,633
parties 625,607 603,118 19,339 2,152 998
2021 626,955 603,583 20,222 2,152 998
Related parties 7,529 4,919 2,610 - -
Other than related
2021 2020
parties 665,232 622,804 30,909 1,228 10,291
2020 672,761 627,723 33,519 1,228 10,291
Amortisation charge for the year has been

allocated as under: Related parties represent Rs 1.35 million due from Bilal Associates (Pvt) Ltd.
Cost of services The maximum amount outstanding at the end of any month during the year from Bilal Associates (Pvt)
21,649 22,499
Administrative expenses Ltd. was Rs 1.35 million.
2,405 2,500
24,054 24,999
These are generally on a term ranging from 15 to 60 days.
DEFERRED TAXATION - net
Deductible / (taxable) timing differences arising in December 31, December 31,

respect of: 2021 2020
-------- (Rs. in thousands) -------
Accelerated tax depreciation and amortisation 76,309 (74,071)
Provisions 122,881 117,907
199,190 43,836 Unsecured, considered good
Suppliers and contractors 28,098 20,985
Employees 2,061 1,214
STORES, SPARE PARTS AND LOOSE TOOLS - net
30,159 22,199
Stores, spare parts and loose tools 488,880 449,475
Fuel and lubricants 26,010 17,271
514,890 466,746
Provision for obsolescence (29,095) (29,095)
485,795 437,651
57 58

2021 2020
10. DEPOSITS, PREPAYMENTS AND
OTHER RECEIVABLES December 31, December 31,
2021 2021
Deposits 10,360 5,480
Prepayments 76,562 64,620
Other Receivables - considered good

Insurance claim receivable 2,876 4,289
Accrued markup 9,538 335
Receivable from tax authorities 16.1.3 100,000 100,000
Others 4,354 4,230
116,768 108,854
203,690 178,954
2021 2021
Amortised cost
Certificate of investments (COIs)
Allowance for expected credit losses 11.1
Represents investment in COIs of Saudi Pak Leasing Company (the investee company). The investee
company made default in repayment against COIs in August 2009 due to serious financial and liquidity
crunch reportedly being faced by it. Due to uncertainties involved, the Company as a matter of
prudence has carried impairment provision in these financial statements. However, the Company is
continuously pursuing for the recovery of the investments amount. Represent shares issued in consideration for mobile harbour cranes, port equipment and a vehicle.
The voting rights are in proportion to shareholding of the shareholders.

2021 2020
Note -------- (Rs. in thousands) ------- December 31, December 31,
2021 2020
CASH AND BANK BALANCES Note -------- (Rs. in thousands) -------
With banks in: Reserves
current accounts 92,392 65,680
savings accounts 4,011,851 1,803,887 Capital reserve
12.1 4,104,243 1,869,567 Capital redemption reserve fund 180,000 180,000
Cash and pay orders in hand 28,182 5,518
4,132,425 1,875,085
Revenue reserve
Unappropriated profits 1,451,943 1,184,061
These carry profit at rates ranging from 4.01 to 9.50 percent (2020: 3.89 to 12.85 percent) per annum. 1,631,943 1,364,061
This includes Rs 6.76 million (2020: Rs 0.14 million) deposited with Islamic shariah compliant banks.
As at December 31, 2021, the Company has unutilised short-term running finance facility under The capital redemption reserve fund can be utilized by the Company in accordance with the provisions
markup arrangements aggregating Rs 265 million (2020: Rs 300 million) available from Faysal Bank of the Companies Act, 2017 and any applicable regulations therein.
Limited carrying mark-up rate based on 6 months KIBOR as benchmark rate plus 30 basis points
(2020: 6 months KIBOR plus 30 basis points). This facility is secured against first pari passu The shareholders are entitled to receive all distributions including dividends and other entitlements in
hypothecation charge on all present and future current assets amounting to Rs 620 million (2020: Rs the form of bonus and right shares as and when declared by the Company.
620 million).
59 60
December 31, December 31, The Company has filed an interpleader civil suit 827/2007 on June 29, 2007 before HCS against the
2021 2020 Deputy District Officer, Excise and Taxation (DDO) and the Trustees of KPT in respect of demand raised
Note -------- (Rs. in thousands) ------- by the DDO on the Company to pay property tax out of the Handling, Marshalling and Storage (HMS)
charges payable to KPT amounting to Rs 34.6 million for the period from 2003 to 2007. In compliance
14. DEFERRED LIABILITY
with the Order of HCS, the Company deposited the amount with Nazir of HCS, out of amount withheld
Provision for compensated leave absences 14.1 63,597 58,166 by the Company from HMS charges billed by KPT.
14.1. Movement In 2014, another demand was made by the DDO amounting to Rs 96.1 million for the period 2008 to
Opening balance 58,166 57,871 2014. On an application filed by the Company for directions, HCS ordered for deposit of the
aforementioned amount out of HMS charges billed by KPT. The Company complied with the order of
Accrual made during the year 7,499 6,047
HCS. In 2015, HCS issued further orders directing the Company to deposit the remaining HMS
65,665 63,918 charges due and payable with Nazir of HCS in quarterly installments. Accordingly, the Company
Payments made during the year (2,068) (5,752) complied with the order of HCS. The amount deposited with Nazir of HCS is netted off with the HMS
Closing balance 63,597 58,166 charges payable to KPT.
The decision of the suit is still pending and the Company's legal advisor believes that there may be no
15. TRADE AND OTHER PAYABLES
adverse implication for depositing the payments due to KPT with Nazir of HCS in view of complying
Trade creditors 15.1 517,331 427,848 with the HCS's order. Accordingly, no provision has been made in this respect in the financial
Technical services fee payable 15.1 139,906 130,048 statements.
Staff related liabilities 178,172 144,393
Payable to port authorities 16.1.2 526,049 While completing the audit proceedings for the tax year 2013, the Deputy Commissioner Inland
434,490
Accrued liabilities 509,849 549,998 Revenue (DCIR) amended the deemed assessment of the Company by passing an order under
section 122(1) of the Income Tax Ordinance, 2001 and made certain disallowances / additions in the
Other liabilities: taxable income and raised an income tax demand of Rs 130.4 million. The Company filed an appeal
Advances from customers 127,038 143,257 before the Commissioner Inland Revenue - Appeals (CIR-A) who partly decided the appeal in favour of
Workers' Welfare Fund 329,541 329,541 the Company. Consequently, the Company made the payment of Rs 100 million and filed a second
Sales tax payable 103,284 58,649 appeal before the Appellate Tribunal Inland Revenue (ATIR), in respect of issues confirmed by the CIR-
Others 4,973 5,660 A, which is pending for adjudication.
564,836 537,107
2,436,143 2,223,884 The tax advisor of the Company is of the view that the issues involved in the appeal will be decided in
favour of the Company and accordingly, no provision in respect of excess demand raised by the DCIR
Includes Rs 309.44 million (2020: Rs 191.8 million) payable to related parties. has been made in the financial statements.
In 2017, the Assistant Commissioner Sindh Revenue Board (AC-SRB) under Sindh Sales Tax on
CONTINGENCIES AND COMMITMENTS Services Act, 2011 raised a demand of Rs 514.4 million along with penalty and default surcharge, for
tax periods January 2013 to December 2014 on exempt services provided by the Company. The
Contingencies Company filed an appeal with Commissioner Appeals - SRB which is pending for hearing.
The Trustees of the Port of Karachi (KPT) filed a civil suit 1201/2006 against the Company on The tax advisor of the Company is of the view that the Company has a strong defence and appeal will
September 13, 2006, in the Honourable High Court of Sindh (HCS) claiming a sum of Rs 304.5 million be decided in favour of the Company. Accordingly, the Company has not made any provision in
along with the interest, as default payment of wharfage and penalty thereon, for the alleged mis- respect of the above demand in the financial statements.
declaration of the category of goods on the import of Ship to Shore Cranes and Rubber Tyre Gantry
Cranes in 2004. In 2017, the Additional Commissioner Inland Revenue (ACIR) amended the deemed assessment of
the Company for the tax year 2016 by passing an order under section 122(5A) of the Income Tax
On April 24, 2017, HCS passed the judgment and decree in favor of the Company and ordered that Ordinance, 2001 and made certain disallowances / additions to the taxable income and tax credits
KPT is not entitled to the amount of wharfage charges claimed by it. On June 03, 2017, KPT filed an claimed by the Company and raised an income tax demand of Rs 222.2 million. The Company filed an
appeal 287/2017 against the aforesaid HCS' judgment before the Divisional Bench of HCS. appeal before CIR-A who had decided the appeal partly in favor of the Company. Being aggrieved by
the decision of CIR-A, the Company as well as the tax department filed the appeals before ATIR which
Upon advice of the Company's legal advisor, management believes that there is no merit in this claim are pending for adjudication. The Company has also sought stay from HCS against the demand
and accordingly no provision in respect of above has been made in the financial statements. created by ACIR after appeal effect proceedings. HCS vide its final order directed the ACIR not to take
61 62
any coercive recovery measures till the finalization of appeal before the ATIR which is pending for In 2020, ACIR amended the deemed assessment of the Company for the tax year 2017 by passing an
adjudication. order under section 122(5A) of the Income Tax Ordinance, 2001 and made certain disallowances /
additions to the taxable income and tax credits claimed by the Company and raised an income tax
The tax advisor of the Company is of the view that the issues involved in the appeal will be decided in demand of Rs 398.155 million. The Company filed an appeal before CIR-A who partly decided the
favor of the Company. Accordingly, no provision in respect of excess demand raised by ACIR has been appeal in favor of the Company. Being aggrieved by the decision of CIR-A, the Company filed the
made in the financial statements. appeal before ATIR which is pending for adjudication.
In 2019, ACIR amended the deemed assessments of the Company for the tax years 2018 and 2014 The tax advisor of the Company is of the view that the issues involved in the appeal will be decided in
by passing the orders under section 122(5A) of the Income Tax Ordinance, 2001 and made certain favor of the Company. Accordingly, no provision in respect of the aforementioned demand raised by
disallowances / additions to the taxable income and tax credits claimed by the Company and raised ACIR has been made in the financial statements.
the income tax demands of Rs 537.247 million and Rs451.828 million respectively. The Company filed
the appeals before CIR-A who accepted the Company's contention in almost all respects except for In 2021, the ACIR amended the deemed assessment of the Company for the tax years 2019 and 2020
couple of matters, for which CIR-A directed the ACIR for re-examination. Being aggrieved by the by passing the orders under section 122(5A) of the Income Tax Ordinance, 2001 and made certain
decision of CIR-A, the Company and ACIR filed the appeals before ATIR which are pending for disallowances / additions to the taxable income and tax credits claimed by the Company and raised
adjudication. income tax demands of Rs 420.619 million and Rs 370.391 million respectively. The Company filed
the appeals before CIR-A which are pending for adjudication. The Company has also obtained stay
The tax advisor of the Company is of the view that the issues involved in the appeals will be decided in from HCS against the demands created by ACIR. HCS vide its orders directed ACIR not to take any
favor of the Company. Accordingly, no provision in respect of the aforementioned demands raised by coercive recovery measures till the finalization of appeals before CIR-A.
ACIR has been made in the financial statements.
The tax advisor of the Company is of the view that the issues involved in the appeals will be decided in
Section 14A of Customs Act, 1969 was amended through Finance Act, 2013 effective from July 01, favor of the Company. Accordingly, no provision in respect of the aforementioned demands raised by
2013, according to which port authorities shall provide at its own cost adequate security and ACIR has been made in the financial statements.
accommodation to customs staff for residential purposes, offices, examination charges, detention
and storage of goods and for other departmental requirements to be determined by the Collector of The Company is defending various suits, other than those disclosed above, filed against it in various
Customs and shall pay utility bills, rent and taxes in respect of such accommodation. courts in Pakistan. The Company's management is confident, based on the advice of its legal
advisors, that these suits will be decided in the Company's favour.
The Company through its legal advisor filed a joint petition with other terminal operators and
challenged the applicability of the aforementioned amendment in law before High Court of Sindh
(HCS) which granted an interim order in favor of the terminals in November 2013. In January 2020,
HCS dismissed the joint petition, however, suspended the judgment for filling an appeal before the
Supreme Court of Pakistan (SCP).
Commitments
The Company has filed a joint Civil Appeal with other terminal operators challenging the impugned
HCS Judgement before SCP. On March 03, 2020, SCP has suspended the operation of the impugned Commitments for capital expenditure 71,739 30,401
judgment and granted leave to appeal. The legal advisor of the Company is of the opinion that the
Company has a reasonable chance of success in this case. Accordingly, no provision has been made Outstanding letters of guarantees 159,354 159,354
in this respect in the financial statements
Outstanding letters of credit
In 2020, while completing the audit proceedings for the tax year 2015, DCIR amended the deemed
assessment of the Company by passing an order under section 122(1) of the Income Tax Ordinance, Utilised 90,674 63,670
2001 and made certain disallowances/additions to the taxable income and tax credits claimed by the Unutilised 109,326 136,330
Company and raised an income tax demand of Rs499.290 million. The Company filed an appeal
before CIR-A who partly decided the appeal in favor of the Company. Being aggrieved by the decision Commitments in respect of Handling,
of CIR-A, the Company filed the appeal before ATIR which is pending for adjudication. Marshalling and Storage charges to the
Karachi Port Trust (KPT)
The tax advisor of the Company is of the view that the issues involved in the appeal will be decided in
favor of the Company. Accordingly, no provision in respect of the aforementioned demand raised by Not later than one year 208,071 204,852
DCIR has been made in the financial statements. Later than one year but not later than
five years 105,338 313,380
313,409 518,232
63 64
12,697,755 Salaries, wages and other benefits 218,123 226,292

10,179,350 Provident fund contribution 7,756 7,592
(1,599,089) (1,170,179) Travelling, conveyance and vehicle
11,098,666 9,009,171 running expenses 16,925 13,740
Legal and professional charges 13,919 16,727
17.1. Includes Rs 96.70 million (2020: Rs74.43 million) collected from customers on behalf of KPT in respect Auditors' remuneration 9,748 10,540
of sales tax on wharfage charges. Security expenses 36,397 28,516
Insurance 14,153 15,014
Office maintenance 68,124 54,221
Advertising and public relations 21,684 7,826
Communication, printing and stationery 28,282 18,591
Utilities 4,685 4,597
Depreciation and amortisation 73,366 71,396
Fees and subscription 13,712 13,366
Salaries, wages and other benefits 571,112 589,933 Others 49,318 47,467
Provident fund contribution 17,183 16,704 576,192 535,885
Staff training 2,045 1,098
Terminal handling and services 720,808 584,302
Royalty to KPT 1,227,350 971,344
Handling, Marshalling and storage charges 202,791 191,572 Statutory Audit Fee 2,300 2,200
Fuel and power 878,252 577,033 Limited scope reviews and other certifications 2,627 2,400
Stores, spares and other maintenance charges 405,274 316,215 Tax advisory services 4,192 4,958
Technical services fee 652,863 529,951 Out of pocket expenses 629 982
Rent, rates and taxes 251,396 153,307 9,748 10,540
Insurance 166,066 153,716
Software maintenance charges 106,176 90,240
Office maintenance 36,118 31,546
Travelling, conveyance and vehicle running expenses 11,807 11,293 Loss on disposal of operating fixed assets - net 307 463
Communication, printing and stationery 3,062 4,154 Exchange loss - net 26,850 4,315
Utilities 1,189 27,157 4,778
1,063
Depreciation and amortisation 660,298 642,567
Others 24,829 22,351
5,938,493 4,888,515
713 617
18.1. 713 617
Represents charges for technical services provided by ICTSI Mauritius Limited to the Company for
advising on continuous improvement of the terminal operations, training of key personnel and risk
management services.
207,757 148,459
12,028 36,437
219,785 184,896
65 66
25.1. Credit Risk

22.1. This includes Rs 0.01 million (2020: Rs 0.67 million) profit earned from bank accounts under profit
arrangement with Islamic shariah compliant banks. 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.
Concentrations of credit risk arise when a number of counterparties are engaged in similar business
23. activities or have similar economic features that would cause their ability to meet contractual
obligations to be similarly affected by changes in economic, political or other conditions.
1,540,364 1,222,983 Concentrations of credit risk indicate the relative sensitivity of the Company's performance to
(155,354) (131,164) developments affecting a particular industry.
1,224 (66)
1,386,234 1,091,753 The Company is exposed to credit risk on long-term deposits, trade debts, advances to employees,
deposits, other receivables and bank balances. The Company seeks to minimise the credit risk
23.1. Relationship between tax expense and exposure by dealing only to customers considered credit worthy and obtaining securities where
accounting profit: applicable. The maximum exposure to credit risk on the financial assets of the Company at the
reporting date is:
Profit before taxation 4,775,896 3,764,272
Tax at the applicable tax rate of 29%

(2020: 29%) 1,385,010 1,091,639
Net effect of income tax provision relating to prior years 1,224 (66)
Others - 180 At amortised cost - unsecured
1,386,234 1,091,753 Long-term deposits 5,544 10,424
Advances to employees 2,061 1,214
Average effective tax rate 29% (2020: 29%) Trade debts – net 626,955 672,761
Deposits and other receivables 27,128 14,334
24. EARNINGS PER ORDINARY SHARE - basic and diluted Bank balances 4,104,243 1,869,567
4,765,931 2,568,300
Profit after taxation 3,389,662 2,672,519 Quality of financial assets
The credit quality of financial assets that are neither past due nor impaired can be assessed by
Weighted average ordinary shares in issue during the year 109,153,152 109,153,152 reference to external credit ratings or the historical information about counter party default rates as
shown below:
Earnings per ordinary share - basic and diluted 31.05 24.48
25. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Trade debts - net
The main risks arising from the Company's financial instruments are credit risk, liquidity risk, foreign Customers with no defaults in the past one year 626,955 672,761
currency risk, interest rate risk and equity price risk. No changes made to the objectives and policies Customers with some defaults in past one year
during the year ended December 31, 2021. The Board of Directors review and agree policies for which have been fully recovered - -
managing each of these risks which are summarised below. 626,955 672,761
67 68
The following significant exchange rate has been applied

at the reporting dates:
905,882 4,594 Pakistani Rupee to US Dollars 176.50 160.19

3,198,361 1,864,973
4,104,243 1,869,567
The following figures demonstrate the sensitivity to a reasonably possible change in exchange rates,
with all other variables held constant, of the Company's profit before tax:
25.2. Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall
due. The Company applies the prudent risk management policies by maintaining sufficient cash and
bank balances and by keeping committed credit lines. The table below summarises the maturity
profile of the Company's financial liabilities at the following reporting dates:
December 31, 2021 ±14,461
Carrying Amount Less than 1 year December 31, 2020 ± 11,234
-------- (Rs in thousands) --------
25.4. Interest rate risk
At amortised cost
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
Trade and other payables 1,875,627 1,875,627 because of changes in market interest rates. The Company's exposure to the risk of change in market
Unpaid dividend 1,517,481 1,517,481 interest rates relates primarily to the Company's financing obligations with floating interest rates.
December 31, 2021 3,393,108 3,393,108 However, as of the reporting date the Company does not have any financing obligations with floating
interest rates.
At amortised cost
Trade and other payables 1,689,449 1,689,449 25.5. Equity price risk
December 31, 2020 1,689,449 1,689,449
Equity price risk is the risk of loss arising from movements in prices of equity instruments. The
Company is not exposed to any equity price risk, as the Company does not have any investment in
25.3. Foreign Currency Risk equity shares as at the reporting date.
Foreign currency risk is the risk that the value of financial instruments will fluctuate due to a change in 25.6. Capital risk management
foreign exchange rates. It arises mainly where receivables and payables exist due to transactions in
foreign currency. The Company is exposed to foreign exchange risk on the following US Dollars The primary objective of the Company's capital management is to maintain healthy capital ratios,
denominated trade and other payables: strong credit rating and optimal capital structures in order to ensure ample availability of finance for its
existing and potential investment projects, to maximise shareholder value and reduce the cost of
capital.
The Company manages its capital structure and makes adjustment to it, in light of changes in
economic conditions. In order to maintain or adjust the capital structure, the Company may adjust the
1,638,663 1,402,576 amounts of dividends paid to shareholders, return capital to shareholders or issue new shares.
The foreign currency exposure is adequately covered as the majority of the Company's billing is The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net
determined in US dollars which is converted into Pakistani Rupees at the exchange rate prevailing at debt. Net debt is calculated as total loans less cash and bank balances. Capital signifies equity as
the transaction date. shown in the statement of financial position plus net debt. The gearing ratio of the Company as at
December 31, 2021 is Nil (December 31, 2020: Nil).
69 70
28. RELATED PARTY TRANSACTIONS

26. FAIR VALUES OF FINANCIAL INSTRUMENTS
The related parties include the Holding Company, associated companies, and entities having
Financial instruments comprise of financial assets and financial liabilities. Financial assets consist of directors in common with the Company, Staff Provident Fund, directors and other key management
long-term deposits, bank balances, advances to employees, trade deposits, other receivables and personnel. Detail of related parties with whom the Company has entered into transactions with or has
short-term investments. Financial liabilities consist of trade and other payables and unpaid dividend. arrangement / agreement in place during the year along with relationship and transactions with related
The fair values of financial instruments are not materially different from their carrying values. parties, other than those which have been disclosed elsewhere in these financial statements, are as
follows:
The Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique: 28.1. Name and nature of relationship
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical a) Holding Company
assets or liabilities.
ICTSI Mauritius Limited – 63.99% shares (directly) held in the Company.
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. b) Associated Companies due to significant influence
derived from prices).
Aeolina Investments Limited – 15.71% shares held in the Company.
Level 3: Fair value measurements using inputs for the asset or liability that are not based on Euroasia Terminal (Private) Limited – 9.37% shares held in the Company
observable market data (i.e. unobservable inputs).
c) Associated companies, subsidiaries, joint ventures or holding companies incorporated
As of the reporting date, the Company does not have any financial instruments carried at fair value that outside Pakistan
required categorisation in Level 1, Level 2 and Level 3.
ICTSI Mauritius Limited - a company incorporated in Mauritius
27. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES Aeolina Investments Limited - a company incorporated in British Virgin Islands
27.1. The aggregate amount, charged in the financial statements for the year, is as follows: d) Post-employment benefit plan
Staff Provident Fund of the Company
28.2. Transactions with related parties
Holding Company
39,748 130,387 35,130 121,385 Technical services fee 652,863 529,951
2,181 6,321 1,891 5,943 Dividends paid 472,644 1,472,550
14,060 43,499 13,568 36,501
Associated companies / other related parties
- 8,456 - - 8,061 - Terminal handling services and rent 498,534 454,946
55,989 8,456 180,207 50,589 8,061 163,829 Revenue from container handling 22,215 27,701
Dividends paid 551,855 1,146,371
1 32 1 30
Key management personnel

27.2. The Chief Executive and certain Executives of the Company were also provided with the free use of Managerial Remuneration 227,694 206,584
Company maintained cars, club memberships, medical, shares of ultimate parent company and other Company's contribution to provident fund 8,502 7,834
benefits in accordance with their terms of service.
71 72
28.3. Amounts due from and due to related parties, amount relating to remuneration of the Chief Executive 32. DATE OF AUTHORISATION FOR ISSUE
and Directors are disclosed in the relevant notes to these financial statements.
These financial statements have been authorised for issue on March 04, 2022 by the Board of
28.4. All the transactions with related parties are entered into at agreed terms duly approved by the Board of Directors of the Company.
Directors of the Company.
33. NON-ADJUSTING EVENTS AFTER THE REPORTING DATE
The Board of Directors in their board meeting, held on March 04, 2022 have recommended a final
cash dividend of Rs. 9.00 per ordinary share amounting to Rs. 982.378 million for the year ended
December 31, 2021. The adjustment for this dividend will be incorporated in the subsequent financial
29. CASH FLOWS FROM OPERATING ACTIVITIES statements of the Company.
Profit before taxation 4,775,896 3,764,272 34. EXEMPTION FROM APPLICABILITY OF IFRIC – 12 “SERVICE CONCESSION
Adjustments for non-cash items: ARRANGEMENTS”
Depreciation and amortisation 4.1.3 & 5.2 733,664 713,963
Accrual for compensated leave absence 14.1 7,499 6,047 As explained in note 2.1, the required disclosure is as follows:
Exchange loss - net 20 26,850 4,315
Finance cost 21 713 617 Under IFRIC-12, the consideration required to be made by operator (the Company) for the right to use
Markup on savings accounts 22 (207,757) (148,459) the asset is to be accounted for as an intangible asset under IAS – 38 “Intangible Assets”. If the
Loss on disposals of operating fixed Company had to follow IFRIC-12, the effect on the financial statements would be as follows:
assets - net 20 307 463
561,276 576,946
Operating profit before working capital
changes 5,337,172 4,341,218
(Increase) / decrease in current assets

Stores, spare parts and loose tools - net (48,144) (10,143) Reclassification from property, plant and equipment
Trade debts - net 45,806 (234,596) (including CWIP) to intangible (Port
Advances, deposits, prepayments and other Concession Rights) – written down value 683,013 980,838
receivables (18,613) 24,366
(20,951) (220,373) Reclassification from spares to intangibles 24,791 27,956
Increase in current liabilities
Trade and other payables 185,409 700,703 Recognition of intangibles (Port Concession
Rights) on account of handling and marshalling
Cash generated from operations 5,501,630 4,821,548 charges (HMS) 129,020 215,034
Recognition of present value of concession liability

30. PROVIDENT FUND on account of intangibles (HMS) 288,258 463,558
Investments out of provident fund have been made in accordance with the provisions of the section Interest expense for the year on account of
218 of the Companies Act, 2017 and the conditions specified thereunder. intangibles (HMS) 25,496 34,334
Amortisation expense for the year on account of

intangibles (HMS) 86,014 86,014
Amortisation expense for the year on account of

concession assets (PPE and spares) 389,346 374,054
680 706
689 738 Increase in profit before tax for the year on account
of reversal of HMS 200,795 195,034
73 74
35. GENERAL
35.1. Amounts have been rounded off to the nearest thousand rupees unless otherwise stated.
35.2. The handling capacity of the Company is indeterminable because it depends on multiple variables
such as dwell time of containers, availability of external yards and type of containers. The containers
handled by the Company were according to the market demand.
02
75 76
Pattern of Shareholding Pattern of Shareholding
As at December 31, 2021 As at December 31, 2021
1,057 1 100 44,685

Directors, Chief Executive Officer and their spouse(s) and minor children - - 938 101 500 278,073
963 501 1000 762,103
Associated companies, undertakings and related parties
634 1001 5000 1,477,514
ICTSI Mauritius Limited 69,848,310 63.99
Aeolina Investments 17,155,639 15.72 104 5001 10000 788,177
EuroAsia Terminal (Private) Limited 10,226,000 9.37 24 10001 15000 303,740
Synergy Limited 783,500 0.72 17 15001 20000 302,176
6 20001 25000 134,383
NIT and ICP - - 148,140
5 25001 30000
Banks, Development Financial Institutions, Non-Banking 7 30001 35000 229,900
Financial Institutions 720 0.00 1 35001 40000 38,300
5 40001 45000 212,700
Insurance Companies - - 7 45001 50000 344,940
2 55001 60000 116,500
Modarabas and Mutual Funds 1,000 0.00
1 65001 70000 66,784
General Public 1 90001 95000 94,000
a.Local 5,293,467 4.85 2 95001 100000 197,440
b.Foreign 542,010 0.50 1 165001 170000 169,300
1 180001 185000 184,100
Foreign Companies 3,008,231 2.75 276,665
1 275001 280000
2,291,566 2.10 1 765001 770000 770,000
Joint Stock Companies
1 780001 785000 783,500
Trust 8 0.00 1 1960001 1965000 1,965,000
1 2235001 2240000 2,235,083
Executives 2,701 0.00 1 10225001 10230000 10,226,000
1 17155001 17160000 17,155,639
1 69845001 69850000 69,848,310
3,784 109,153,152
Details of Purchase/Sale of Shares by Directors, CEO, CFO, Company Secretary and their spouses or
minor children during the Year Ended December 31, 2021
ICTSI Mauritius Limited 69,848,310 63.99
Aeolina Investments 17,155,639 15.72
77 78
Glossary
Board: Board of Directors

CEO: Chief Executive Officer
CSR: Corporate Social Responsibility
ICAP: Institute of Chartered Accountants of Pakistan
ICTSI: International Container Terminal Services Inc.
IFRIC: International Financial Reporting Interpretations Committee
ISO: International Organisation for Standardization
KPT: Karachi Port Trust
NIT: National Investment Trust Limited
PICT: Pakistan International Container Terminal Limited
PSX: Pakistan Stock Exchange
SECP: Securities and Exchange Commission of Pakistan
SRB: Sindh Revenue Board
SRO: Statutory Regulatory Order
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ANNUAL REPORT

Bauan International Port, Inc.

Our purpose in doing our work is to grow:

Diligence Core Compassion

We value our work and take responsibility

Board of Directors Key Management

Directors Chief Financial Officer

Human Resource &

Mr. Gordon Alan P. Joseph is an Independent Director. Gordon Alan

Mr. Bilal Shahid’s has more than 15 years of diversified professional

During the year, your Company marked a milestone with the

CONCESSION AGREEMENT Education

Meetings Attended Member of AUDITORS

For and on behalf of the Board of Directors

Mr. Hans-Ole Madsen Mr. Khurram Aziz Khan

Statement of Profit or Loss (Rs. in Millions)

Revenue 11,098.67 9,009.17

Statement of Financial Position (Rs. in Millions)

Share Capital and Reserves 2,723.48 2,455.59

Earnings Per Ordinary Share (Rs) 31.05 24.48

2. The composition of the Board is as follows:

c) Executive Director/ Chief Executive Officer

b) Human Resource and Remuneration Committee

c) Risk Management Committee

a) Audit Committee [Quarterly]

Mr. Hans-Ole Madsen Mr. Khurram Aziz Khan

December 31, December 31, December 31, December 31,

TOTAL EQUITY AND LIABILITIES 6,838,382 4,832,220

CONTINGENCIES AND COMMITMENTS 16

December 31, December 31,

Other comprehensive income - -

Interim cash dividends for the year

Balance as at December 31, 2020 1,184,061 1,364,061 2,455,593

Profit after taxation 3,389,662 3,389,662 3,389,662

Final cash dividend for the year

Interim cash dividends for the year

Balance as at December 31, 2021 1,451,943 1,631,943 2,723,475

1. CORPORATE INFORMATION AND OPERATIONS

2.2. Basis of measurement

2.3. Expiry of Concession Agreement and Going Concern Assumption

3.1.2. Capital work-in-progress

Initial recognition and measurement December 31, December 31,

4.1.1. Disposals of operating fixed assets

Items having written down value

2020 4,900 4,089 811 348 (463)

December 31, December 31,

4.2. Capital work-in-progress

December 31, December 31,

Computer software 241,404 170,772 24,999 195,771 45,633

Amortisation charge for the year has been

Deductible / (taxable) timing differences arising in December 31, December 31,

December 31, December 31,

Other Receivables - considered good

The voting rights are in proportion to shareholding of the shareholders.

12,697,755 Salaries, wages and other benefits 218,123 226,292

25.1. Credit Risk

Tax at the applicable tax rate of 29%

Profit after taxation 3,389,662 2,672,519 Quality of financial assets