Annual Report 2022

We Enrich
Lives & Lifestyles
National Foods Limited

Annual Report 2022
Annual Report 2022

12/CL-6, Claremont Road
Civil Lines, Karachi.
+92 21 38402022
www.nfoods.com
About the Report
We are the leading foods Our products are purpose-made for convenience
and easy preparation to match contemporary
company of Pakistan with lifestyles, retain our values, and traditional tastes
which are so close to our hearts.
products that are loved
across boundaries and This report highlights our business, achievements,
internal and external initiatives, innovations,
spread across different current progress, performance, and future outlook.
categories. Our vision is to With a history spanning over f ive decades, we have
create food that enriches the trudged through various challenges of economic
booms/depressions, wars, globalization, changing
lives of people everywhere. consumer lifestyles, technological advancements
and have successfully catered to the changing
needs of our customers. And how did we manage
this? Through our easy-to-prepare products that
are tailor-made to bring warmth into your life and
enhance your lifestyle.
Annual Report 2022 | 01

In Loving Memory
of Mr. Abdul Majeed
This past year, we were fortunate to conduct our It was utilising Majeed Sahib’s technical knowledge,
delayed 50th anniversary celebrations in the and familiarity with European textile machinery,
presence of one of our founders, Mr. Abdul Majeed. that – in collaboration with Mr. Waqar Hasan and
To celebrate this with him will be an eternal his litany of talents – the pair were able to
blessing for the National Foods family. On establish ATC Technology Consultants in 1964.
February 22nd, 2022, we bade our remaining Without the flourishing business as textile agents
founder farewell, as he departed this mortal plane working between the machinery producers in
to one of infinite peace. Europe and textile producers in Pakistan, they
would not have been able to acquire and fund the
Born in the village of Kalaske, around 15 kilometres progression of their friend’s ailing food start-up in
west of Gujranwala, Punjab, on the 9th of 1970. Through the great toil and prescient vision of
September, 1933, Mr. Majeed inspired many with our founders, Waqar Hasan and Abdul Majeed, this
his passion and generosity of spirit, sharing his failing business would become the National Foods
ambition and commitment to ethics, in combination as we know it today, over fifty years later.
with a constant focus on innovation and
collaborative progression. Majeed Sahib was extremely passionate about
research and innovation. His leadership and
As a young teenager, he moved to Lahore, creativity ensured exponential growth in the
pursuing his higher education and living with his
business, and instilled a culture of professionalism,
older brother. This was a formative period for Mr.
integrity and commitment to quality. The founders’
Majeed. Not only was he exposed to the inspiring
business legacy is immense, leaving us to build on
currents of Islamic intellectualism flowing at the
time through his brother and his circle of friends their vision, and to evolve, both as a Pakistani
and associates, he witnessed the founding of multinational food company, and as a group, with
Pakistan, present at some pivotal moments in the ATC Technology Consultants rapidly approaching
birth of the nation, including two of Quaid-e-Azam’s its 60th year of continuous operations.
most important public addresses. This period thus
ignited within him two fires that would burn Given his own background, Majeed Sahib was a
brightly throughout the rest of his life: an extensive staunch supporter of equal opportunities and
reading of Islamic thought and poetry from Allama education’s potential to empower. His service to
Iqbal to the great Sufi poets, enabled by his ability education manifested itself through his
to read in their original language; and a profound establishment and support of many technical
belief in Jinnah’s vision of Pakistan, which he spent institutions, schools and the Adult Literacy
his life pursuing. Programme. He was a great believer in the
strength of the human spirit to transform destiny
After graduating from F.C. College in Lahore and through the power of education, especially for
gaining work experience in textile mills in Multan women. He approached this plethora of
and Thar, Mr. Majeed was awarded a scholarship educational and philanthropic projects across
from the British Council to study Textile Pakistan with profound optimism – for individuals
Engineering at the University of Manchester. It and the nation itself, which he always believed
was in his years studying in Manchester that he could aspire to Jinnah’s vision.
would meet Margaret Elizabeth Alexander, who
would soon become Margaret Majeed. Upon Rest In Peace Abdul Majeed (9th September 1933
finishing their respective undergraduate degrees – 22nd February 2022). You are loved and will be
(Margaret Majeed receiving hers from the London forever missed. Your spirit will live on and continue
School of Economics), the couple were married in to inspire us.
1960. As their honeymoon, they drove a
Volkswagen Buggy from Manchester to Karachi,
where they lived from then onwards.

Contents
About The Company Corporate Governance Business Review Financial Report

Our Story 09 Directors’ Profile 109 Chairman’s Review 139 Statement of Compliance with Listed
50 years of Enrichment 11 Board Committees 118 Directors’ Report 140 Companies Code of Corporate Governance
Business Profile 18 Corporate Governance 120 Regulations, 2019 172
Geographical Presence 20 Management Committee 124 To the members of National Foods Limited
Financial Review Independent Auditor’s Review Report 175
Founder's Philosophy 22
DuPont Analysis 154
Vision & Mission 24 Standalone Financial Statements 2022 176
CSR & Sustainability Financial Ratios 155
Brand New Website 26 Consolidated Financial Statements 2022 240
Quality Education
Core Values 28 Financial Statements at a Glance 156
Bawaqar Scholarship 128
Code of Ethics & Business Practices 30 Financial Highlights 158 Others
Children’s Learning Festival 128
Creating History 32 Horizontal Analysis 164 Notice of 51st Annual General Meeting 312
Awards & Certificates 36
Gender Equality Vertical Analysis 165 Dividend Mandate 322
Our No. 1 Recipe Mixes Gets a Makeover 40 Behbud Welfare Organization 130 Summary of Cash Flow Statement 166 Glossary 324
Our People 42 Partnership with Ubuntu Care
Food Services Division 44 Six Year Cash Flows Using Direct Method 167
for NFL Daycare 131
Manufacturing Excellence 47 Statement of Value Added
Our Supply Chain 58 Clean Water & Sanitation and its Distribution 168
Customer Relationship Management 60 Mineral Water Facility at SITE Plant 132 Pattern of Shareholding 170
Brands and Campaigns 62 Effluent Treatment Plant 133
E-commerce 76
Technological Developments 79 Climate Action
Quality, Innovation, Research & Development 80 Plantation Drive with World Wildlife
Fund (WWF) 134
Health Safety & Environment 84
National Foods DMCC 86
Stakeholders Information
Organizational Chart 93
Company Information 96
Calendar of Events 98
CEO’s Message 101
© 2022 National Foods. All Rights Reserved. Annual Report 2022 | 05

We Enrich Stories
to Bring Us Together
About the Company
Our Story
National Foods continues We began our journey in 1970 as a spices company

with a product that brought the idea of clean and
to spread happiness by healthy foods to life. Since then, we resolved to
offering authentic flavors, make hygienic food, reduce time spent in the
kitchens, and foster good health. And on a daily basis,
and re-uniting people with we strive to elevate our communities and create a
their longstanding better lifestyle for those around us.
Pakistani heritage. Since inception in 1970, National Foods has evolved

into a leading multi-category food company that
250
produces 250 different products across 13
categories. We hold ISO 9001, ISO 45001, ISO
22000 and HACCP certifications along with SAP
Business Technologies to ensure that our
Products
customers receive the highest quality products.
12
With a strong commitment to quality and
operational excellence, we are integrating our
systems with SAP S/4HANA, the latest ERP
business suite for large conglomerates.
Categories
We constantly Inspire New Traditions and have
HACCP
already successfully expanded our global footprint
across 40 countries in 5 continents. At National
Foods, we're creating food that enriches the lives
Certified of people everywhere.
About the
The Company
Company Annual Report 2022 | 09
Completing 50
Years of Enrichment
This Fiscal Year, we This milestone was an excellent opportunity for

the Company to not just share the happiness with
celebrated 50 years of employees but also share the renewed Vision of
the company. The Vision has cascaded down to a
enrichment with the NFL new corporate identity for National Foods where
Family. The jubilation was the website has been refreshed with a completely
new look.
shared with employees at
every location as the feeling The Employees were given a beautiful and
memorable gold coin whereas a chic Coffee Table
of pride and warmth swept Book serves the purpose of gifting.
over everyone who was There’s no looking back for National Foods now!
a part of it.
05
Days
07
Events
1000+
Employees
About the
The Company
Head Office Karachi Region
12 | Completing 50 Years of Enrichment Annual Report 2022 | 13

Islamabad Region Lahore Region

Gujranwala Region Nooriabad Plant
PQ Plant

Business Profile
National Foods Limited has This structure was further expanded with 2 more
subsidiaries in Canada, (National Epicure Inc.) and
successfully established United Kingdom, (National Foods Pakistan UK
Limited) catering to the North American and
itself as a multinational European markets respectively.
food company with an
During 2017, National Epicure Inc. acquired 60%
independent subsidiary, interest in A-1 Bags and Supplies Inc., a company
National Foods DMCC in based in Ontario, Canada, engaged in distribution of
restaurant, industrial, & retail supplies.
Dubai, in 2013, catering to
the Middle Eastern market.
18 | Business Profile Annual Report 2022 | 00

Founders’ Philosophy
• Through building a reliable brand, national foods

must get itself recognized as a leader in Pakistan
and abroad.
• National Foods must focus on customer needs

and serve them with quality products that conform
to international standards & local standards.
• We must strive to be leaders in all the brands that

we produce.
• Our research must continuously produce new

and well-researched, innovative products to
promote health and nutrition.
• We must prove ourselves to be good corporate

citizens, support charitable causes for
betterment and focus on Triple Bottom Line for
People, Planet and Profits.
• Projects to be identified and initiated that

contribute to the economy of Pakistan positively.
• Reserves must be built, new factories created,

sound profits made, and fair dividend should be
paid to our stockholders.
• We must create an environment in our offices

and factories where talent is groomed, and
people have every opportunity to advance in
their careers.
• With the help of Almighty Allah, the company can

achieve its targets in times to come.
22 | Founders’ Philosophy
Vision & Mission
Vision
Creating food that enriches the
lives of people everywhere.
Mission
We will achieve our vision by
designing and manufacturing
food and related products,
conforming to international
standards and guidelines for
nutrition, health, wellness and
quality, bringing joy and
happiness to people everywhere.

Brand New
Website
With our new vision steering

us towards the future, we
have completely revamped
our website in line with the
new vision, updating our look
that feels truly National. The
new website contains
information about our legacy,
our products, services,
divisions, people, media,
events, and growing global
footprint.
Brand Story
We are crafters and creators, lenders and inventors,
makers and innovators.
We’re more than quantities, segments, and

categories. We build legacies and connectivities,
with the humanity that comes with love, warmth,
and a healthy disposition.
Scan to visit our Corporate Website
26 | Brand Story
Core Values
Customer Excellence in
Passion Centric Teamwork Execution Ownership
Go Above Prioritize Customer Trust Each Other and Lead, Commit and Own It and
and Beyond Experience Achieve Together Deliver the Best Deliver It
(Internal & External)
• We love what we do • We work collaboratively • We set a clear direction • We lead by example
• We continuously seek to across organizational for our deliverables
• We have the courage to understand and identify boundaries on common • We are responsible for all
question the status quo customer needs objectives • We make decisions which our actions and decisions
result in increased
• We think big and create • We focus on providing • We respect each other’s productivity and • We empower ourselves and
new possibilities convenience and value to ideas and opinions efficiencies take initiatives to meet
our customers business needs
• We bring positive energy • We give constructive and • We develop proactive
to everything we do • We listen to our customers candid feedback solutions to overcome • We own our growth
and treat them with respect current or potential and development
• We are driven by new • We share knowledge and challenges
challenges and learning • We are clear and experiences to help each • We are responsible for the
opportunities transparent in our other develop • We work on continuous safety and well-being of
communication performance improvement ourselves and our
• We celebrate the wins and learning community
• We consider all customer together
touchpoints to offer the • We strive to consistently
best possible solution add value to the business
and the environment
28 | Core Value Annual Report 2022 | 29

Code of Ethics &
Business Practices
4. Confidentiality 6. Financial Integrity
NFL believes in confidentiality of information NFL believes in complete compliance with the
related to company business activities. accepted accounting rules and procedures.
National Foods Limited We wish to achieve excellence in all spheres of our
operations for which code of conduct form the The company expects employees not to
This includes but is not limited to:
believes in conducting its basis. Any party entering any form of contract disclose or divulge by any means the
i. Transparency: NFL discourages any illegal
activity for the purpose of any benefit to the
with NFL is bound to comply with the given confidential and commercially sensitive
operations with strong guidelines. NFL’s statement of code of conduct & information except to the authoritative
company or others. All information supplied
to the stakeholders and/or auditors must be
ethical and moral standards. business practices have the following seven employee requiring it. Furthermore, they authentic & transparent
guidelines: should use their best endeavors to prevent the
NFL’s statement of code disclosure of such information by other people.
ii. Disclosure: All transactions must be fully
disclosed and must be for the purpose stated
1. Unfair Means
of conduct & business The obligation of confidentiality shall survive
Any use of bribery, kickbacks or any form of the expiration or the cessation of employment 7. Health, Safety and
practices aim to provide payment in cash/kind to obtain any undue contracts with National Foods Limited and is Community Responsibility
equally applicable to intellectual property
guidance on carrying out its business related or otherwise gainful benefit
for the company is strictly prohibited.
NFL is fully committed to safety, health and
5. Statutory Compliance responsibility towards environment and
business-related decisions Excessive business gifts and entertainment community. All activities of NFL must portray
also hold the same meaning and NFL does not NFL aims to comply with all the laws, rules and
and activities. approve of such payments. regulations laid down by governmental and
responsibility towards the community and
nation as a whole. NFL seeks to employ
regulatory bodies
procedures that are safe, healthy and
2. Unfair Behavior environment friendly.
We aim to operate in a manner that
discourages discrimination, harassment and/or
influence. Discrimination refers to favoritism
based on a particular aspect of an individual’s
personality. Harassment includes gender
harassment creating an intimidating, hostile or
offensive work environment causing
interference with work performance.
Influence could be an abuse of authority or
the wish to alter personal believes.
3. Conflict of Interest
NFL prohibits actions that are in conflict with
the company business interests. This may
include but is not limited to:
i. Providing assistance to the competition or

holding ownership interests in a customer,
supplier, distributor or competitor
ii. Making personal gains at company expense
30 | Code of Ethics & Business Practices Annual Report 2022 | 31

Creating History
The present management acquires a National Foods expands by acquiring National Foods becomes the certified National Foods as a committed and National Foods adds ketchup to its National Foods launches its mainstream National Foods celebrates the opening of National Foods celebrates its 40 years of National Foods establishes its subsidiary, National Foods acquires 60% interest in Gender Diversity Award By CFA Introduction of new Scene On packaging
small company called National Food new spice mill and a packaging plant. vendor of McCormick, USA, as part of socially responsible organization joins product portfolio. products in Australia to offer a taste of its brand new production facility at Port success and introduces the instant drink National Epicure Inc., in Canada for A-1 Bags and Supplies Inc. through its Pakistan Society. and launch of Scene On YOLO.
Laboratories Limited’, with the idea of National Foods launches its branded theri Supplier Certification Program. hands with UNICEF to spread ethnic food to the Non-Asian consumers. Qasim. This new factory is equipped with category with the launch of “Fruitily”. trading of food products in North subsidiary in Canada. National F o o d s
Launch of National Garlic Mayo. Launch of e-storefront on Amazon.
introducing branded and packaged salt. The certification is awarded on the awareness about the use of iodized salt The following year, National Foods state-of-the-art machinery and is America. launches Mayonnaise to its product
basis of excellent production and which helps fight against widespread crosses Rs.1 billion on its sales. spread over more than 10 acres. range. Perfect Store Launch and Bushfire Launch of Made Easy online store.
spices. Although the spice industry is
quality credentials. National Foods idoine related deficiencies and National Foods launches its “Saaf Pani Activity.
flourishing locally, it lacks a formal Re-launch of National Custard in the
also becomes a Public Listed Company diseases in Pakistan. Sehatmand Zindagi” campaign. Systems are switched to Office 365.
structure. National Foods makes its Launch of DBRS (Demand Based market with rich, creamy texture.
on the Stock Exchange within the same
mark by bringing a revolution in the year. National Foods also launches its first Launch of the 1st 360-degree campaign Replenishment System).
Launch of National ka Pakistan - season 6.
Pakistani food market by launching range of Halal frozen meals and for International Markets. Partnership with Sopheon for
packaged spices. Red Chilli, Turmeric traditional nimco snacks called National Introduction of National Crushed Pickle.
CATALYST - Innovation Management.
and many other spices are introduced Authentic and National Masala Snax
Launch of curry powder in KPK.
in a clean, attractive package to the internationally. Launch of our most affordable National
consumers. Salt SKU. Launch of e-commerce portals across
Amazon, walmart, ebay & our own
British Retail Consortium (BRC) Audit
storefront in both USA & Canada.
conducted and Grade A awarded.
Joint Business Partnership between

NFL and Google.
Availability of National Foods at Walmart

USA.
Certification of Port Qasim Facility with

BRC Global Standards.
Launch of Scene On in Top 21 Snack

Launch of first-ever Learning Towns.
National Foods shifts to its new Management System (LMS) for
Certification of Gujranwala, Port Qasim
Corporate Office. employees.
and SITE Plants with ISO 45001:2018
National Foods establishes its first National Foods inaugurates Gujranwala
International subsidiary, NF DMCC, in Factory in line with its Vision. This plan Inauguration of the Snacks Launch of a new range of Scene On Launch of two new flavours of Scene
Dubai. focuses on streamlining the value productions at Port Qasim with launch XOXO. On; Sriracha Mirchi Maza and Lemon
chain of Kasuri Methi, along with of Scene On in the market. Chilli Patakha.
Aflatoxin free Red Chilli Crop project providing support to National Recipe Launch of National Pink Salt Variant. 50-year celebrations.
conducted successfully with Masala’s packaging processes. Launch of Chana Chaat Masala and Launch of Meat Tenderizer
Launch of new Vision.
A new factory complex is inaugurated at With the aim of bringing constant value progressive farmers. Fruit Chaat Masala. Launch of Rozana Recipes Range. Addition of PET Jar to the Pickle Packaging revamp of Recipe Mixes.
Site for the manufacturing facilities to be to our consumers, National Foods National Foods launches its Jam and National revitalizes passion with NFL launches its first Solar Energy Portfolio.
National Foods moves its operations to based. National Foods launches its range diversifies its product portfolio with the National Foods goes into Salt Plant Jelly range and also becomes an ISO National launches its line of instant revamping of its logo and packaging of “Building Excellence in People” Project at Port Qasim in line with Establishment of Demand Based Launch of Bombay Biryani Karachi Launch of NFL Hotlink.
Dinar Chambers West Wharf. of recipe mixes. launch of the Pickle range. Modernization. Certified Company. desserts. all products. Program was initiated by HR. substainable energy developments. Replenishment System (DBRS). Khaas. Launch of Iodized Pink Himalayan Salt. Launch of Premium Chunky Jams.
32 | Creating History Annual Report 2022 | 35

Awards & Certificates National Ketchup Factory gets featured at WARC
(World Advertising & Research Center)
National Foods Limited (NFL), launched a fun and Ketchup Factory, a unique digital series hosted by
educational food series aimed at children in Pakistan, Kids for kids has been globally recognized and
BRC Certified – AA Grade The BRC Standard has become a benchmark for National Ketchup Factory, to increase sales and featured on WARC as a case study.
best practices and is recognized worldwide by brand brand love. A unique digital show hosted by kids for
National Foods takes pride in empowering Food owners and manufacturers in the Supply Chain kids that creates fun through the use of food + ology The WARC is considered as one of the largest and
Safety & Quality Systems in our products & domain. Congratulations to the team at Port Qasim! (a subject of study), focusing on distinct themes like most credible sources for Marketing, Advertising
processes. It is imperative that we continue to This BRC “AA” GRADE CERTIFICATE is a milestone science, arts and craft, music, marine biology, animals and Research. The case study is titled ‘National
make developments to meet and exceed in ensuring highest level of Global Food Safety that and wildlife, and above all, food. We are excited to Foods Limited: National Ketchup Factory – how it
industry standards. represents National Foods Limited! announce that our branded content series, National added flavour to digital content for Pakistani kids.’
BRC
We are delighted to announce that National Foods
Port Qasim facility is now BRC Global standard
certified with AA Grade of certificate. Which is
the highest awarded grade against announced FOOD
CERTIFICATED
audit program of BRC.
Crushed Pickles & National Ketchup Best Corporate Report Award 2020
bring home the Effies As an organization that has its roots in excellence
National Foods bagged two Effies this year! Bronze and in going above and beyond to surpass the
Effie for National Ketchup Factory in the category benchmarks of quality, we are proud to announce
of Branded Content and Silver for National Crushed that National Foods has won the award for the Best
Pickles in the category of Marketing Innovation Corporate Report 2020.
Solutions.
Every year, ICAP and ICMA choose winners for the
best annual reports in multiple categories, and this
year, National Foods is the only winner from the
FMCG Category – a feat worthy of pride for all of us.
Congratulations to the entire National Foods family!

Nation Foods Limited wins Annual CSR Award 2022 by NFEH
For our contributions and efforts to enriching the
lives of people in Pakistan through our CSR
initiatives, we have won NFEH's Annual CSR
Award 2022.
Based on our ongoing efforts to create and initiate

positive social and environmental outcomes through
education, the Governing Body of National Forum
for Environment & Health (NFEH) and the CSR Club
of Pakistan has awarded National Foods with this
prestigious award in the category of
36 | Awards & Certificates Annual Report 2022 | 37

Education and Scholarship. As a part of NFL’s NFL receives Annual CSR Award by The Professionals Network
golden jubilee celebrations and in line with UN SDG
number 4, we launched ‘Bawaqar Scholarship We are thrilled to announce that National Foods • Pakistan’s leading Governing Body of
Policy’. The Bawaqar scholarship covers the cost of has won the 11th Annual Corporate Social Responsible Business Excellence – The
books and tuition fee of one school going child for Responsibility Award by The Professionals Professionals Network has bestowed another
a period of 1 year. Network for responsibly handling the Covid-19 award in the category of Education Scholarship
pandemic and initiating positive outcomes Program for our efforts to advance the cause of
This is a testament to our purpose of elevating the through education in Pakistan. education. As part of our Golden Jubilee
lives of ordinary Pakistanis to achieve extraordinary celebrations and in line with the United Nation’s
results through education and learning. The awards have been bestowed in the SDG# 4, we launched ‘Bawaqar Scholarship
following 2 categories: Policy’, which enabled 20 students to cover the
cost of books and tuition fees.
• The last couple of years have been
unprecedented due to the global pandemic. At At National Foods, we truly commit to enriching
National Foods, we are committed to our people the lives of people everywhere.
and made numerous initiatives to counter the
harsh realities of the pandemic. We are one of
the few organizations who did not let go of
employees during this time, started a special
Covid allowance package for our field and plant
staff, and conducted multiple ration drives
along with our employees in multiple cities of
Pakistan. For this, we have been awarded the
Proficiency Testing Annual CSR Award in the category of Crisis
Assistance.
National Foods Ltd has been Accredited with
ISO/IEC 17025, a general requirement for the
competence of testing laboratories, from Pakistan
National Accreditation Council (PNAC), Ministry of
SEDEX Membership
Science and Technology. National Foods takes pride in empowering Supplier Ethical Data Exchange, commonly
responsible Supply Chain in our business. It is known as SEDEX, has been favored by many
The Proficiency Testing is an important element of imperative that we continue to make large retailers and manufacturers,
ISO/IEC 17025 Accreditation & Assurance. It developments for positive change in our supply supermarkets, brands, suppliers and other
ensures the validity of results through continuous chain to serve both our buyers & suppliers in organizations as they require farms, factories
assurance programs and validates quality of the the best manner by focusing on their needs and and manufacturers they work with to participate
analytical processes & results. Inspiring New Traditions. in the SEDEX Audit. In line with the requirement
of relevant ethical standards, the results of the
National Foods has taken this opportunity for
To take our responsible supply chain to the next audit can be recognized and shared by all SEDEX
constant improvement and competency
step, we are pleased to announce the SEDEX members, so the supplier’s acceptance of the
development, enrolled to the numbers of International
membership of Port Qasim & Nooriabad Plant. SEDEX audit can save many duplicate audits
Proficiency testing providers including:
from customers.
• FAPAS, Proficiency testing from Fera
Science LTD UK
• LGC, AXIO Proficiency Testing Program USA
• CLPT, Department of Science Services Thailand
• APAC Asia Pacific Accreditation Cooperation
38 | Awards & Certificates Annual Report 2022 | 39

Our No. 1 Recipe Mixes
Gets a Makeover
National Foods Unveils New Packaging of Pakistan’s No. 1

Recipe Mixes
National Foods is the manufacturer of Pakistan’s No. Furthermore, a seamless and smooth customer
1 Recipe Mix brand - as per Foresight Household journey has been ensured through multiple ways;
Panel ’22. The company has launched the redesigned preparation is explained in both English and Urdu with
packaging of the Recipe Mixes category. visual depiction of each step. A unique spice meter
indicates the level of hotness in the recipe mix. The
The pack communication is clean and easy to MadeEasy QR code transports the consumer to the
navigate, with ingredients always being the hero. The website for more creative dishes while the Hotlink
revamped design of recipe mixes range revolves establishes a direct connection between the
around the concept of diverse and vibrant colors customers and National Foods.
which depict the rich culture, tradition and the proud
nation of Pakistan. Each category is marked with This once-in-a-decade relaunch of the massive
Recipe Mixes category is augmented by a clutter
distinguishing colors; the rice range is marked with a
breaking, 360-degree approach via extensive digital
beautiful mustard whereas the Salan (Curry) range is
platforms such as YouTube, Facebook, Instagram,
depicted via a gorgeous purple. Fried range is
TikTok, and debut on Spotify; creative and
shocking pink whereas a deep maroon brings in
eye-catching OOH displays in 7 cities at prominent
vitality to the succulent BBQ range.
locations; PR efforts for multiple stakeholders and
mainstream media including Print, TV and Radio were
The crescent pattern of the Pakistani flag lies at the
utilized in a constructive manner including media
heart of the National Recipe Mixes design, uniting the roadblocks.
elements on the pack. Every motif at the pack
distinguishes the diverse range that this category has The communication and approach to customers is
to offer; Rice, Fried, BBQ, Salan, Haleem and Stir-Fried eye catching and gives a breath of fresh air to the
(Bhunna) to name a few. While the Rice Range motif is viewers.
shown via the traditional rice bowl, skewers and grills
depict the mouth-watering BBQ range. Every Garnish With the new packaging launch, National Foods has
is depicted like the star from Pakistan’s flag. once again set the bar high in terms of beautiful
packaging and seamless customer experience.
40 | No. 1 Recipe Mixes Annual Report 2022 | 41

Our People
Offsite Goal Setting & Business National Foods Limited
Review Session Apprenticeship Program 2022
NFL has collaborated with Technical Education &
NFL introduced a framework for maintaining Dignity at NFL, To promote a collaborative and cohesive work
Vocational Training Authority (TEVTA) for a
culture, the Manufacturing, Supply Chain and
which outlines a mechanism for reporting, investigating, Finance teams embarked on a four-day offsite
technical skills enhancement program for our plant
operations. This collaboration has enabled us to
and remedying any misconduct. session in the northern areas of Pakistan to discuss
the business performance of the past year, align
induct Competency-Based, Trained & Qualified
resources for our Human Resources requirements
priorities for the upcoming fiscal year, recognize
in manufacturing and will play a key role in
Dignity at NFL Trailblazers – Graduate Trainee employees for their accomplishments and triumphs
strengthening our talent pipeline for our Faisalabad
and to build synergies within the team.
NFL believes in living a life in accordance with its Program Plant. The program, named XCELERATE, is a
values, thus complying with the Code of Ethics and This year we relaunched our flagship graduate two-year apprenticeship program designed to
Good Business practices along with maintaining an trainee program - Trailblazers Program with the aim empower youth by providing them with an
environment which is free from discrimination and of developing a pipeline of functional experts to opportunity to gain hands-on experience at our
harassment. enhance organizational capability. The program is manufacturing facilities.
specifically designed to provide fresh graduates
Earlier this year, NFL introduced a framework for with ingredients for learning and growth together The first batch of 17 DAE-qualified apprentices is
maintaining Dignity at NFL, which outlines a with a recipe for success, while they take charge of being inducted at the Gujranwala plant as Phase
mechanism for reporting, investigating, and driving their own careers. The Trailblazer Program One of this program. These apprentices will be
remedying any misconduct. NFL has empowered will prepare fresh graduates to lead and create an provided extensive on and off-the-job training over
employees to report misconduct anonymously impact in their chosen career stream. It offers a two years to build and enhance skills and develop
through the NFL Integrity Line. This is a major step pathway to accelerate their career growth and expertise in their respective areas.
towards opening a reporting channel as well as develop wide range of capabilities.
providing a platform to the staff to flag
non-compliance. The HR department aims to The program began with selection of fresh
provide gender sensitization workshops along with graduates from universities all over Pakistan and
training to the staff on the said portal. abroad. Graduating students were also reached out
by means of Social Media Campaign on LinkedIn,
Career Frameworks Facebook and Twitter. In addition to this, physical
and virtual campus drives were held in which
National Foods understands the importance of university alumni from business participated and
developing its people as a key driver of success shared their experiences with the graduating
and considers innovation as the key towards students. A highly competitive and rigorous
sustainable growth. To build capabilities and a selection process was designed to ensure that we
diverse workforce that can thrive under a hire the best talent with the right behavioral and
high-performance culture, the journey of building cultural fit. Diversity in terms of gender, discipline
Career Frameworks continued this year with and demographics was encouraged throughout the
development of Marketing and Finance Career process without compromising on quality of the
Frameworks. These Career Frameworks enable us resources. Interested candidates went through
to lay out the experiences that will allow career online assessment, digital interview, assessment
development and continuous performance center and management interview to trail blaze
improvement. And alongside allow us to build their way through to National Foods.
organizational capability.
42 | Our People Annual Report 2022 | 43

Food Services Division FSD joined the Billionaire’s club
The Journey that began in 2019 was not an easy
one. Covid’19 hit the world by a storm, spreading a
cloud of uncertainty around. But the FSD Team
remained steadfast and creative in coming up with
To deliver our corporate vision - Creating food that building internal capabilities, strengthening our
solutions to tackle the uncertainties and convert
enriches the lives of people everywhere, one of the Route to Market, and delivering best in class, reliable
them into opportunities. As a result, we crossed PKR
most important drivers will be our penetration & service. This channel has now evolved to
1 Billion in the first ten months of the year 2022,
eventual success in all food consumption channels. encompass the vision of providing best-in-class
reaching PKR 1.2 Billion by year end.
culinary solutions and forming meaningful, profitable
In Yr. 2019, we embarked on a journey to touch PKR partnerships with food providers in the spirit of
1B sales in Food services channel by introducing innovation and quality in food. Building Meaningful Partnerships
cost effective and value generating solutions, Through Trainings & Events
We provide our customers with not just our products,
but also Value-Added Services. We provide solutions
for the issues faced by the food services industry.
The Perfect Products for all Chefs & Cuisines We facilitate our customers by giving them learning
opportunities/trainings on Plating, Menu Design,
We have the perfect range of Products from basic our newly launched Chicken Powder. Our products Recipe Improvement, Wastage Reduction, overheads
ingredients to specialized sauces and recipes. Our enable the talented chefs to do what they love the and customer footfall management. This ensures
FSD Product Portfolio includes Ketchup, most - create quality food which ensures utmost that along with excellent food, they have exemplary
Mayonnaise, Basic Ingredients, Recipe Mixes, and satisfaction for their customers. customer service and restaurant management.
To facilitate and engage with the caterers across the
country, we conducted two Roadshows which were
Chef’s Day
held in Sialkot & Faisalabad. Both the roadshows The Food Services Division collaborated with
experienced a great turnout of catering company COTHM to host the International Chef’s Day. This
owners and chefs. National product usage was event was an effort to celebrate the chefs who work
demonstrated, and recipe and menu development day and night behind the scenes to get the best food
were discussed in lengths. We also had a discussion to the customers and ultimately become the reason
on the HACCP (Hazard Analysis and Critical Control for a food provider’s success. The event was
Point) which revolved around how to fight the safety attended by numerous chefs to promote the spirit
hazards present in the food businesses. of culinary excellence and the efforts that go behind
getting the best food to the customers’ tables.
Many International chefs were also a part of Chef’s
Day Celebrations who helped make the event even
more memorable.

Manufacturing Excellence
Port Qasim Plant Initiative) which aims to

reduce the need for multiple
supplier audits by
1 Quality & Compliance harmonizing international
National Foods has been winning the hearts of food safety standards. BRC
consumers with its High-Quality Standard and this standards are accepted by
is assured by embedding a systematic Quality many of the world’s largest
Assurance approach in our culture. Some of the retail groups, manufacturers
Annual Culinary Awards- Lahore major achievements related to Quality and and food service
Compliance are as follows: organizations - providing an international mark
To help recognize the talented and hardworking chefs from all over Pakistan, as well as some of the of excellence for the certificate holder.
chefs of Pakistan, National Foods co-sponsored the most notable personalities from the digital food
• XRAY Inspection at Export Section:
Annual Culinary Awards 2022 which was a community. National Foods representatives were
The Port Qasim Facility is now Re-certified with
remarkable success, an event attended by almost all present at the event to engage the captive audience Production inspection through XRAY has been
the highest AA Grade for BRC Certification
patrons of the culinary industry. It was attended by with the brand. successfully implemented for all products of
500+ guests including well known executive which is an improvement from the previous A
the Export Section. The XRAY offers
Grade. For National Foods, this certification is of
inspection on products for not only metal
great importance as it ensures the customers
contamination, but also plays a role in plastic,
that the product being manufactured is of the
glass and ceramic detection. This inspection
highest standard and quality and allows us to do
system will serve as a crucial CCP (Critical
business with retailers and food service
Control Point) ensuring that our customers get
organizations who specify this certification as a
the safest and highest quality product.
mandatory requirement.
• GMP Compliant Industrial Flooring

upgradation in Pickle Section:
The project involves NFL’s drive towards
continuous improvement of our manufacturing
standards and exhibiting the highest standards
of HSE (Health, Safety and Environment) and
GMP (Good Manufacturing Practices). As such,
the project was planned to improve new
seamless industrial flooring. This is an
• BRC Re-certification: upgradation from industrial tiling whereas
Polyurethane floor is chemical/slip resistant and
The British Retail Consortium (BRC) Global
manages good hygiene conditions in a more
Standards specify safety, quality and
efficient manner. The project was executed in a
operational criteria for food producers and
single phase after shifting production activities
suppliers. Used worldwide, the standards are
from the current location to an alternate location.
recognized by the GFSI (Global Food Safety
46 | Food Services Division Annual Report 2022 | 47

II. The Twin-Feed machine Infeed Revamp • Natural Gas is used in Port Qasim for Pickle • Steam Generator & Diesel Tank was installed to
Project, which rationalizes the manning Cooking, Snacks and Dehydration. Due to serve as a backup source of the Boiler to
requirement by half for Material infeed, Unannounced Gas Shutdowns, Production was compensate for steam generation during
reduces electricity consumption and improves halted in some departments. To prevent this, production for Pickle and Snacks as well as
floor space. Boiler Conversion on Dual Fuel has been avoiding plant shutdown.
successfully implemented with energy efficient
modulating burner. It has the capability to run on
gas as well as diesel with no compromise on
efficiency and safety.
2 Operational Excellence
National Foods has always encouraged new Ideas
4 IIoT - Step Towards Digitalization installation of various sensors and equipment
which detect the stops/downtime and update
which can improve process, reduce wastages, In the era of Industry 4.0, data is an asset for any them into the dashboard real time. The minute wise
optimize manpower, increase productivity and organization. The data helps us identify issues and data for production, speed, electrical parameters,
reduce downtime; in short - Operational work on their improvement. We have implemented stoppages are available on the Dashboard to
Excellence. This year, many projects were IIoT (Industrial Internet of Things) System in the analyze and work on improvement areas.
implemented in Port Qasim which contribute Recipe Packing department of Port Qasim. This
towards Operational Excellence, some of which system has replaced the manual recording of The Dashboard is built on cloud which can be
are as follows: machine data such as stops, production, SKUs, accessed from anywhere.
wastage etc. and manual entry of data into the
• In-House Grinding:
3 Business Continuity dashboard. The whole process is automated by the
To ensure our customers receive our products
The capability for In-house grinding of 15
without any delay, it is important that the
outsource materials has been developed
Manufacturing Plant runs smoothly without
at Port Qasim Plant. This will lead us to
self-reliance, ensuring capacity utilization breakdown. Some Projects were delivered in Port
curtailing food fraud and maintaining Qasim to prevent down-time even in the most
Product integrity. challenging situations which are listed below:
• Recipe Packing:
Various Automation Projects have been
developed and implemented in the Recipe
Packing department such as:
I. The Vento Outfeed Automation which
automates the process of packet turning and
stacking, which as a result has reduced the
manpower requirement and has improved
spatial management.
48 | Manufacturing Excellence Annual Report 2022 | 49

Gujranwala Plant Induction of Scissor Lift for
Employee Safety
Launch of New Ketchup Packing Line Capability Development of
This year one of the major projects of Gujranwala Workforce on HSE Working at height is one of the biggest causes of
plant was the capacity enhancement of Ketchup National Foods Gujranwala plant works on fatalities and major injuries across the world.
line to meet business growth requirements. This enhancement of individual capability to help them Common cases include falls from ladders, through
project scope covers installation of new packing in recognizing the unsafe conditions and devise fragile surfaces and use of inappropriate equipment.
machine, a cooking Kettle with upgradation in civil effective control in order to provide safe system & Gujranwala plant has acquired a scissor lift to
structure. This project will add 27.5 million Ketchup place for work. eliminate work at height hazards to their employees.
Scissor lifts are an excellent alternative to ladders
pouches on annualized capacity of plant.
As technology advances and workplace strategies and manually propelled scaffolds. They provide a
evolve, there comes a need to align with these safe and stable work platform.
NFL’s aim has always been to acquire latest
changes in terms of knowledge and skills. At
technology to get better quality and competitive
National Foods Gujranwala we provide employees
edge, Hence NFL management has decided to
with relevant and consistent safety trainings that
acquire high speed Duplex Machine from Mespack
helps in improving performance and efficiency in
Spain which is one of the top leading European the workplace which results in less number of
brand, equipped with all international safety, food injuries & improved hazard closure rate.
safety, and hygiene standards.
This project will be operational from October 2022. Following training programs have been arranged for
the team:
3 Road safety
Construction of New Recipe 1 X Factor
Weighing & Packing Hall A session of safe driving and road safety has
been organized by HSE team at Gujranwala
A new recipe weighing and packing hall is X factor Training program series designed on
plant with the help of Motorway police
constructed in line with Food Safety & HSE 12 different vital safety topics was through public private partnership.
standards in Gujranwala. conducted by plant management to make it
comprehensive for all workforce that safety
is the top priority.
Smooth Production and Volume
GMP Improvements on Plants
Growth on Plant 2 Basic Life Support
Good Manufacturing Practices (GMP) are the
One of the biggest achievements of Gujranwala preliminary prerequisites in food safety
First aid training for employees is vital to
plant is smooth and timely supply of products to management. These provide basics hygiene
ensure proactive safety measures are in practices and conditions to maintain good hygienic
condiments and culinary business even during
place at National Foods. A safe workplace environment to process safe food. Plant Team has
political sit-In and strikes in country.
breeds better productivity and avoids taken number of initiatives to improve overall plant
preventable losses of manpower and vital GMP conditions, few out of them are mentioned
Plant has shown significant volume growth of 14% below. These initiatives have improved overall
man-hours.
Vs last year (YTD 22 Actual Volume 21,062 MT Vs plants GMP score from 75% to 84%.
LY Volume 18,441 MT). This volume increase on
A basic life support session has been PU Flooring is done on Ketchup Cooking Area to
Gujranwala plant favors business in logistics savings
organized with the help of Rescue 1122 at improve floor GMP conditions.
and manufacturing overheads cost (MOH per Kg)
Gujranwala plant to ensure Emergency Installed 6,000 Sft Shed to protect material from
decline by 6% from last year (YTD 22 Actual Rs. 14.7
Response Team can provide immediate care being exposed to direct sunlight and rains.
Vs LS Rs15.7).
to sick or injured patients until full medical Installed 4500 Sft False ceiling in production hall to
help is available. improve GMP compliance and aesthetics of area.

SITE Plant New Product Developments (NPDs):
The plant has successfully delivered the following
new products as part of its portfolio:
• Chunky Jam
• Mayo-Chup & Red-Chili Mayonnaise
• Classic Mayonnaise 4kg
• 8 ml Tomato Ketchup Export
• Non-Preservative Sauces for the Gulf Market
Quality & HSE compliance:

Giving the highest priority to safety and quality,
SITE plant team has achieved the re-certification
of the following:
• ISO 9001:2015
• FSMS: ISO 22000 Business Continuity: • Volume production of 15,118-ton from
13,150-ton last year (13% increase).
• ISO 45001:2018 Since the Site plant was generating electricity
using diesel fuel and thus, incurring huge costs. To • Global Efficiency (GE) of the plant was
• HSE Hazard elimination and successful
inspection by government body on the transfer counter this we have moved our KE power successfully sustained at 76%.
and installation of new boiler outside the upgradation from 256kW to 1MW through HT bulk
• SITE operations team has reduced overall
manufacturing facility supply.
wastages by 6.1%.
• For GMP compliances, HVAC systems
upgraded in various production areas. Manufacturing Excellence: • Daily Direction Setting (DDS) meeting at shop
floor has been initiated at the plant level to
• 5s culture implementation drive has led to SITE operations team has always been very
ensure that the KPI’s of Safety, Quality,
resolving space shortages, material committed to continuous improvement efforts
Productivity and Cost are discussed daily with
management and improving overall plant and with the aim of developing an operational
floor GMP. an effort to resolve day-to-day issues
excellence culture at the plant that leads to an
promptly and effectively. This cultural change
• Installation of New Cargo lift to meet HSE environment of efficiency and productivity.
is bringing the values of ownership and
compliances. Meanwhile, product supply has been smooth
leadership at the ground level among each
• Performed PU flooring to abide with food throughout the year without any supply loss.
participating system owner.
safety compliances.

Nooriabad Plant Successfully achieved the milestone to keep TRIR at zero.
1 Health Safety & Environment

Health and safety are integral part of Nooriabad valued and protected for their own sake, ensuring
Plant. Whilst it is imperative that the wellbeing that it makes perfect business sense too. Being
NOORIABAD
0
of our employees and all those associated health and safety compliant we have conducted
with the company are highly different training sessions.
INCIDENTS
2021 Total
Recordable
Incident Rate
(TRIR)
We have made firefighting and detection system to fully protect our employees from any kind of fire
fully operational as per National Fire Protection incidents.
Association & Building Code of Pakistan standard
Successfully completed SEDEX surveillance audit, help of National Motorways and Highway Police to
initiated campaign “ Safety on the way” with the provide awareness of how to drive safely.

Nooriabad Team stands as a winner of “Safety Olympiad award” 3 Manufacturing Excellence non-magnetic (aluminum, brass, copper). The
powerful technology can also spot elusive stainless
We are committed towards continuous improvement steels.
of our operations to reduce wastages, improve
productivity and gain a winning edge with quality
and safety innovations. Keeping in view that
devotion, we have initiated different safety and
process improvement kaizens, achieved 100%
conformance to production volumes and plans,
completed carrot cutting activity to store
highest-ever quantity of 62.2 million kilos with zero
LTI, FAC and Injuries.
2 Quality Management System

Nooriabad Plant has built a strong Quality Back support has been provided on 120 stools to
Management System (QMS) in place to document improve sitting ergonomics of workers.
the policies, business processes, and procedures
necessary for an organization to create and deliver All rotatory parts of mango cutting machines have
its products or services to its customers, and been covered to make our workplace safer.
therefore increase customer satisfaction through
Salt powder production has been increased up to 35
high product quality.
Tons/day from 10 tons/day to full fill the
requirements of Port Qasim plant and ensure
business continuity.
Moreover, we also translated Consumer Related

Quality Standards ( CRQS) in Urdu language so that
down the line team members have quick and clear
understanding for day-to-day decisions making
regarding product quality standards.
At Nooriabad plant online inspection and monitoring

of Product and processes has also been initiated
with SAP based application “FIORI”. All of these
drives helped us to achieve zero customer
We have continuously been placing our focus to
Being devoted to make our QMS more effective we complains, 70% reduction in internal quality improve the quality and safety of our products.
have initiated live reporting of critical parameters notifications, meet regulatory and consumer Following that, we have installed state of the art
of our products . This initiative enables us to take requirements, prevent errors, save money, metal detection systems at our NBD facility. Metal
immediate actions for adjustments.
continually improve our offerings and good detectors have an ability to detect all types of metals
manufacturing practices (GMP) compliance. in products, magetic (steel, iron) or

Our Supply Chain
Strategic Sourcing of Materials Sales & Operations Planning (S&OP)

Material Costs, foreign exchange depreciation and In a volatile business environment, S&OP process
freight increases remained a challenge for Supply remained a pivotal business process to ensure that
Chain during the year. In order to support local forecast is aligned to business results. To ensure
supplier base and mitigate price increases from robustness, organizational design and processes
import sources of Tomato, we were able to source changes were implemented such as monthly stock
locally for 1,000,000 kgs of paste which saved norms adjustments for season and consumer
PKR 85 M. Sugar too was sourced from local promotions. Demand Supply Reconciliation meeting
suppliers to mitigate the local commodity was extended to sales and marketing teams for
headwinds that resulted in cost saving of PKR 36M. timely addressing risk and opportunities. In exports,
Furthermore, with strong market intelligence and weekly S&OP was led by leadership to review the
close working with our suppliers, Procurement order vs delivery for quick decision making.
team not only secured stocks during the year but
also successfully mitigated PKR 670M of Logistics
commodity headwinds in RM and PKR 30M in PM.
Major challenge for the year was inflationary
pressures due to extraordinary fuel price increases
Supply Planning resulting in service level risks. Collaboration with
A key risk highlighted was increase in Business 3PLs on the bank of technology giving visibility of
Waste hence Supply Chain initiated a cross cost and service, agile solutions were explored to
functional forum of SLOB (Slow Moving & Obsolete ensure that business performance is sustained at
Materials) to highlight SKUs/Material with potential optimized costs. Inventory and batch accuracy
risk of expiries covering both local and export improvements were pivotal with new vendors
business. Due to high business complexity, SAP induction in warehousing and process improvements
reports were created for speedy and accurate in current ones. In exports, container release orders
information. In second half of the year, SLOB forum (CROs) to North America from shipping companies
was driving consumption of material before expiry, was a challenge which increased the lead time to
highlighting Financial RISK to Business, minimizing service. Different tactical initiatives such as 30 days
write off, resulting in avoiding business waste of challenge were implemented to reduce the service
PKR 60 M. times to customers.
58 | Our Supply Chain Annual Report 2022 | 59

Customer Relationship
Management
For Your Cooking

Queries, Tips & Advice
Customers and customer service are at the heart
of everything we do here at National Foods. For
this, we've made it easier than ever for you - the
amateur chef cooking dinner for your loved ones,
and the professionals who want to create
something special for their audience - to get in
touch with our experts, ask your queries, and
enrich your culinary experiences.
We have also made it easier for our customers to

order products online. Customers can now pick up
their phones, call our Hotlink, and order any of our
products to be delivered to their doorsteps. This
also means they can discuss their recipes with our
experts and order the products accordingly. Not
only that, but our customers can also give
feedback on our products directly. This allows us to
always stay up-to-date with what our customers
need and how we can improve our products to their
liking.
Customers can pick up their phones and complain

about any issues they have had with our products
and their orders via this Hotlink.
With our products, we were already in your

kitchens. With our Hotlink, 111-111-NFL, we're
closer than ever!
80 | Information
60 CRM Technology Annual Report 2022 | 61
Brands & Campaigns
The
Recipe Mixes colors of
For the first time, Recipe Mix launched an exciting ‘Flavors
of Ramadan’ campaign with a dedicated DVC showing
Aaj
Rung
popular chefs and a live cooking show hosted on our social
media pages every Sehri and Aftaar.
National Foods Recipe Mix enjoys a strong brand 1 Sleek, minimalistic design targeting modern and
equity and has maintained its market leadership this progressive imagery
year as well, despite growing external challenges on 2 Range-wise color blocking ensuring better
Hai
global economic front impacting costs and visibility on shelves
profitability.
3 Unique motif patterns for each range capturing
cultural and food cues
The obstacles proved to be a driving wheel to bring
4 Consumer friendly cues like easy-to-follow
some exciting news. For the first time, Recipe Mix
recipes, relevant icon, spice-meter etc.
launched an exciting ‘Flavors of Ramadan’ campaign
with a dedicated DVC showing popular chefs and a 5 QR code linked to Made Easy website, and NFL
live cooking show hosted on our social media pages hotlink to engage with consumers and
every Sehri and Aftaar. A mix of popular chefs and customers alike
celebrities like Wasim Akram, Hina Pirzada, Sadia The packaging change is supported by a holistic
Imam, and Marina Khan graced the show and 360 degree marketing campaign activating multiple
engaged with the live audience creating massive touchpoints TV, Digital, media integrations, PR, Print,
hype and talkability. Out of Home, and trade visibility. The TVC brings to
life the iconic ‘Aaj rung hai’ kalam with a modern
twist to it and is targeted to a wider set of audiences,
To further build onto Recipe Mix’s efforts in Karachi,
especially younger, to build desirability and a
National Food Recipe Mix partnered with District 19
premium image.
and hosted a one-of-its kind ‘Suhoor Nights’ event
where NFL was able to interact and engage with The campaign kicked off with a roadblock across
families and youngsters alike and create an aura of 25 TV channels and all digital platforms to drive
food and festivity like never before. maximum impressions and create an impact. It was
further amplified by premium inventory placement
Keeping up the momentum, National Foods Recipe on Google Display Network and YouTube. For the
Mix launched an extensive packaging changeover first time, Recipe Mixes has gone live on Tik Tok and
embodying a more modern and consumer centric Spotify to amp up awareness and recall of Aaj
look; Rung Hai.
62 | Brands & Campaigns Annual Report 2022 | 63

National Salt National Plain Spices
National Foods Limited has established its status as We are also aiming to devise and execute a strategy Last year, National Foods Limited focused on open and substandard spices, while promoting the
the pioneer and forerunner in the branded salt to build awareness among the consumers that getting the consumers shifted from unbranded health benefits using our branded spices developed
category. We cater to the diverse requirements of primarily highlights the benefits of using branded salt, segment, which currently enjoys a huge chunk of from fresh & quality ingredients and packaged
our customers, and have therefore expanded our while targeting these counterfeit products. the market. And with not sufficient players through a completely mechanized process in a
range of salts, which now includes Refined Salt, currently offering branded spices, this market hygienic environment.
Iodized Refined Salt, and Iodized Pink Salt. Last year, We have utilized promotional activities on trade for a segment remains untapped and thus offers
we also redesigned the complete range of our better brand presence and recall with particular enormous opportunities to create a market niche. These marketing tactics have and will keep resulting
products to present branded salt as a superior emphasis on iodized and iodized pink salt. in ensuring an upward trajectory for the category
alternate to the sub-standard counterfeit products, Through effective promotion on electronic and while grabbing a substantial market share from the
which are currently available in market with similar digital media, we highlighted the risks posed using unbranded segment.
names and logos to deceive consumers.
64 | Brands & Campaigns Annual Report 2022 | 65

National Pickles Season Activations
To create incremental shopper interest and
consumers. To keep the hero product of the pickles
portfolio relevant as well as maintain top of mind
awareness, a PR plan was launched around Bakra
engagement, seasonal activations were carried out Eid in June ’22. The first leg of the campaign
Pickle Please – PR Campaign ASMR Campaign in top cities nationwide. Keeping in line with the involved engaging Chef/food bloggers and
National Crushed Pickle was a revolutionary launch Autonomous sensory meridian response (ASMR) festive and fun filled aura of the brand, colorfully influencers to participate in a Chatkharaydar Eid
in the pickles category. With the perfectly balanced works by using triggers such as whispering, delicate dressed Dhol Walas paraded through different Meat Battle to curate intriguing and exciting recipes
taste of crushed vegetables in each and every bite, hand movements, exaggerated sounds, and General Trade Clusters, captivating the shoppers to with National Crushed Pickle. These were featured
the product stood out as a market disruptor and excessive focus on expressions while consuming the delicious offer – Free Chatkharaydar Kachoris on social media platforms as short reels and will also
quickly won the hearts of consumers to become food, to appeal to and enhance the audience’s with National Crushed Pickle. Similarly for Modern be collated in the form of a Chatkharaydar Recipe
one of our top-selling products. sensory experience. To supplement the Trade, Kachoris were sampled with the hero product. book. The second leg of the campaign involved
#PicklePlease activity and capitalize on this recent The last leg of the activations involved targeting inviting food enthusiasts in popular and trending
To reach maximum audience and create awareness social media trend, National Crushed Pickle set out shopping markets for the peak Eid shopping season Facebook food groups to participate in an exciting
with a unique but fun campaign. Popular celebrities during the last 2 weekends of Ramadan. The high competition where 6 top entries would win a
of the newly launched product, a PR campaign was
like Iqra Aziz, Ushna Shah and Muneeb butt were consumer footfall coupled with the overwhelmingly Kenwood Food Factory worth Rs. 39,000. They
launched with the hashtag #PicklePlease. The
brought in. The collaboration with well-known media positive response on the taste and efficacy of the were asked to recreate their favorite recipes or
campaign onboarded well-known food bloggers and
personalities led to the creation of incredibly product made the activity a huge success, leading come up with creative and out-of-the-box dishes
social media influencers who promoted Crushed
creative, lively, and engaging social media content to exceptional product visibility and shoppers' incorporating the Hero Ingredient: National Crushed
Pickle as a multi-use product that could be used in a
that featured the use of Crushed Pickle in various interest in the product. Pickle. This would serve to register usage and
variety of ways to provide a unique and
consumption occasions for our consumers and
mouthwatering flavor to a diverse range of dishes. ways; the use of beautiful hand motions, intensified
generate hype and engagement around the product.
Food bloggers were sent a DIY box and were asked sounds, and focus on facial expressions while eating The Crushed Pickle PR Plan 2022
to develop their own special recipes to inspire their food increased the viewers' interest in this activity.
National Crushed Pickle is an innovative product
followers to attempt similar appetizing dishes, the The campaign was an instant hit and garnered
that has revolutionized the Pickle Category in
results of which were to be uploaded on Instagram astounding results.
Pakistan by successfully gaining popularity among
using the hashtag #PicklePlease. The bloggers
recommended National Crushed Pickle to their Bakra Eid Campaign 2021
followers and encouraged them to try it. With total To keep National Crushed Pickles at the top-of-mind
interaction of over 0.5 million, and total reach of the consumer, a Bakra Eid plan was launched with
exceeding 2.3 million, the results clearly showed the objective of staying relevant and engaging with
that the product was a hit among food enthusiasts. the target audience on all occasions.
More than 3,650 entries of fusion recipes were
uploaded on Instagram. To produce tasty fusion meals using Crushed Pickle,
we collaborated with 3 prominent YouTube chefs.
To further build on the talkability generated by the Unique recipes were created especially for Bakra Eid
#PicklePlease campaign, the product was also and were posted on Made Easy, the official e-store
promoted on social media. A competition was of National Foods. For Facebook and Instagram,
launched on popular Facebook food groups interesting content was created around the core
targeting different foodies. The participants were idea: "Add a tangy twist to your Eid spread with
asked to use National Crushed Pickle to create their National Crushed Pickle!"
own unique and inventive combinations and post
their entries online under the hashtag As a part of our consumer promotion campaign,
#PicklePlease. The overwhelming response in these an Achari BBQ bundle was developed and
food communities further served to establish the promoted on social media, which was well received
products credibility among the target audience. by the consumers.
66 | Brands & Campaign Annual Report 2022 | 67

National Squeezy
It is the first of its kind format in Pakistan offering
convenience, ease of handling and pourability via smart
drip control technology.
The Introduction of National Squeezy: and its key benefits such as hassle free,
The First Premium Packaging Format convenience & easy pourability. An integrated
Digital Campaign on YouTube, Google Display,
in the Category
Facebook and Instagram was launched with high
On a continuous journey of innovation, National reach and high impact strategy. The awareness
Foods Limited aimed to drive differentiation and and consideration phases yielded exceptional
establish market dominance by introducing a new brand lift scores that have outperformed
format; Squeezy! It is the first of its kind format in Industry Benchmarks.
Pakistan offering convenience, ease of handling and
pourability via smart drip control technology. The The Squeezy Maze: In-store
product was launched in the Ketchup and Activation & Sampling
Mayonnaise range.
Instore activations were carried out in the
Squeezy Visibility & Engagement supermarkets of Karachi, Lahore, Islamabad,
Multan and Faisalabad to promote the products via
Drives:
game and free sampling. The game generated
National Squeezy was launched in August’ 21 via a tremendous results and positive feedback in
holistic marketing and sales launch plan. In-store the market.
visibility elements such as FSUs and podiums were
deployed at key outlets. Additionally, carrefour was The Squeezy Trio: E-commerce
leveraged and customized podiums were placed at
outlets across Karachi, Lahore and Islamabad. Ecommerce is catching up fast and is rapidly taking
POSM was also deployed across all channels to over from the conventional ways of selling products.
amplify visibility of the new launch. Furthermore, to We collaborated with ecommerce platforms like
gain stakeholder support, a distributor breakfast Daraz, Bogo, PandaMart, Airlift and Made Easy Store
was planned and successfully executed on a to sell our products. Audience were targeted
national level, alongside other efforts to maximize through ads and various promotions.
team engagement.
#ItsEasywithSqueezy – The Squeezy

Communication
The Squeezy communication was launched on
Digital in Sept’21 capitalizing on the hashtag
‘#itseasywithsqueezy’ to increase awareness.
Engaging consumers in an exciting journey, the
copy focused on establishing the unique format

National Ketchup
National Chilli Garlic Sauce Zaroori! National Ketchup Factory
For the first time ever, a functional copy for National National Ketchup Factory is a unique platform which
Chilli Garlic Sauce was aired on TV and Digital. Short enables kids to learn various skills in an interactive
functional copies for Tomato Ketchup and Chilli and engaging manner. The show was widely
Garlic Sauce were launched in the month of acknowledged as a source of developing children’s
March’22 for brand recall and to drill the products in knowledge. This show also won an “Effie Award” in
the minds of viewers. TV and Digital platforms were 2022 and gained local and international recognition
capitalized reaching 69 million+ impressions and 9 in October 2020.
million+ reach.
NKF Season 2 featured 8 episodes which were aired
Consumer Promotion in June’22 to capitalize on the summer vacations,
offering kids with interactive activities. To further
On the occasion of Eid-ul-Azha, a promotional
build on it, #MommySquad was leveraged on social
campaign for National Ketchup was initiated along
media, where influencers were on-boarded with
with National Recipe Mixes “Free Biryani Recipe pack
their kids gaining attraction. National Ketchup
with Ketchup 800g” to make consumers’ preferred
Factory is also live with its website that has been
products part of the festive season. The offer was
dedicated and where kids can engage and build
supported by digital posting and POSM deployment.
association with the season.
Additionally, Saucy Deals was introduced, through
which consumers were offered free Recipe Mix Pack
on purchase of National Ketchup. This promotion
helped us generate volumetric sales of Tomato
Ketchup & Chilli Garlic Sauce.
Ramadan Season
The Ramadan promotional campaign was quite
extensive. We celebrated the holy month by
offering discounts: PKR 20 off on 800g SKU and
PKR 10 off on 400g SKU with Limited edition
packaging, featuring price off flashers. Brand
visibility drive was carried out through POSM &
FSUs deployment. To engage consumers digitally, a
weekly recipe challenge was live which resulted in
500+ reactions, 163k+ reach and 123k+ view.

National Mayo Chunky Jams
Consumer Promotion On-Ground Activities & Sampling National Chunky Jam was launched in August 2021 To create awareness for the consumer, we developed
in modern trade channels, a product made with the a functional DVC which was aired in August’21 to
To leverage winter season and to generate trial and National Foods initiated WS activation and MT finest ingredients, greater fruit content & real fruit promote 4 indulgent flavors, new transparent bottle,
penetration of National Mayo, a consumer promotion activation drives in the months of March and April on chunks. The new product was launched with a new unique packaging design and different consumption
was launched in Oct’21 to leverage National Ketchup a mass scale. We targeted major cities such as look and feel of transparent curvy bottle that makes occasions. The campaign was aired on Youtube,
i.e. Free Mayo 40g LUP with Ketchup 225g and Free Karachi, Lahore, Islamabad, Peshawar, Faisalabad, it standout on the shelves. National Chunky Jam was Facebook and Instagram along with other social
Mayo 200g with Ketchup 800g. Gujranwala, Multan and Jhelum. The results that we launched in 4 variants i.e., Strawberry Bliss, Mango media content to create awareness on the
obtained were hugely encouraging as we surpassed Magic, Mixed Fruit Tango and Apple Delight. consumption occasions and usage versatility.
both the interception and trial targets.
Our premium Jam range was made available on all To make noise on ground, we did visibility podiums in
top Ecommerce platforms including Made Easy, all 7 Carrefours nationally and deployed 80 FSUs in
Daraz, Cheetay, TCS Sentiments, Asanbuy, Airlift, top premium modern trade outlets. Brand
The cart.pk and Panda mart. The availability on Ambassadors were also deployed in all the premium
ecommerce platforms along with the traditional outlets to educate consumers on the new product
sales channel gave an extra mileage to the product and to generate sales. In March’ 22, experiential
to boost the awareness and sales. Along with the sampling was done in modern trade outlets to
availability on top platforms, we also cashed upon generate trials and to give consumer the product
the different campaigns on these platforms by experience. All these activities proved to be a step in
providing different DIY kits, discounts, free of cost the right direction to generate awareness, trial and
products etc. sales for this new launch.

National Custard Jelly & Traditional Desserts
Custard was relaunched with new packaging and Custard DVC was activated on digital, social media Crystal Jelly was relaunched with new formulation relaunched in our portfolio with new look to build the
new formulation in March’ 21. This year was aimed at and ecommerce platform to drive consideration and and packaging in January’22. The objective of the image of the brand. The objective in traditional
generating trial for the consumers, retailers, whole- trial. The DVC was targeted on promoting the indul- relaunch was to enhance the brand image and to desserts segment is to increase penetration of
salers and internal team members. We conducted gent creamy range, new packaging, usage versatility convert consumers on National Jelly. Traditional branded traditional dessert category and to build
trial generation activity through a Custard on the and consumption occasion of Custard. We also Desserts including Vermicelli and Kheer Mix was also credibility of National Dessert
Wheels brand activation cart which was placed on targeted opportunities on Daraz, panda mart and
different food streets, shopping markets, malls, Airlift to leverage different occasions like Mango
cluster markets and other consumer spots to Mania, Daraz 11.11 and other such occasions.
generate trial of our creamy Vanilla, Strawberry,
Mango and Banana Custard.

E-commerce
To directly engage with retailers and increase our

coverage, we have also onboarded several major B2B
ecommerce platforms to connect with small-medium
sized retailers shopping for stock online.
National Foods Limited is dedicated to reaching all cooks, but they can also become part of the Made
consumers through multiple access points for Easy community by submitting their own recipes. To
engagement, interaction and transaction. With the further capture and grow in the online market,
tremendous boom of e-commerce in Pakistan that National Foods is also selling products to major
showed the rapidly changing buying preferences of e-commerce and quick commerce platforms in
consumers, National Foods has taken several Pakistan. This ensures that we are always
important initiatives to adapt to online shopping. accessible and available for our consumers online-
anytime and anywhere.
Made Easy, which is our own Direct-to-Consumer
channel, now sells products and promotional To directly engage with retailers and increase our
bundles nationwide along with easy-to-follow coverage, we have also onboarded several major
recipes. This allows our consumers to interact with B2B e-commerce platforms to connect with
us and build a direct relationship as we provide a small-medium sized retailers shopping for stock
complete food solution for them and their loved online. This enables us to further build strong
ones. Consumers can not only shop their favorite relationships with our B2B customers and always
National products and search for recipes and hacks stay at pace with the changing trends of our times.
to help them become better and more confident

Even our systems come Technological Developments
with enriched flavour.
NFL IT’s primary focus has always been to add value to its
businesses and enrich the entire technology experience,
right from basic connectivity to integrated business
applications and analytics.
This past fiscal year, technology at NFL has Cybersecurity

embarked on a transformational journey with the
destination being true strategic alignment between Enhanced cybersecurity measures have become
NFL’s business technology goals and business the need of the hour and with the vision to go global,
processes that run in harmony with systems that information security becomes a key compliance
are rooted in industry best-practices. requirement. NFL IT is on a two-year journey to
implement the CIS Cybersecurity Framework,
Some major initiatives as part of this consisting of 153 action items categorized under 18
transformational journey include: controls, focused on improving data protection and
security. We have achieved over 20% compliance
so far and are working towards full compliance in all
Enterprise Business Process and
aspects of IT, from IT services management,
Digital Transformation
Internet and connectivity, business applications and
Hand in hand with our vision to Enrich People’s Lives, device management to name a few.
NFL IT is leading “Enrich with SAP” – NFL’s SAP
Transformational Program, moving to the latest Strategy & Governance
S/4HANA Enterprise Suite through the “RISE with
At the heart of a strong IT-Business relationship lies
SAP” program that will enable us to expand our SAP
an effective IT strategy. NFL’s IT Strategy was
landscape on the cloud and allow for hyper-scaling
developed and aims to align our strategic business
with SAP’s cloud-based add-on applications like
goals and IT goals & initiatives for the next three
Integrated Business Planning, Ariba Procurement
years, focusing on Delivery Excellence, Customer
Solution & the Governance, Risk Management &
Experience, Employee Experience, Operational
Compliance suite to provide a convenient
Excellence and Corporate Growth.
one-window solution to all our enterprise needs.
With our businesses growing and expanding globally,
As a pre-requisite to our move to S/4HANA, we will
it is imperative to ensure proper governance and
conduct an extensive Business Process
structure when it comes to planning, executing, and
Reengineering exercise to streamline the way we
sustaining technology related projects. IT
work and optimize our processes as per industry
Governance and PMO Frameworks have been
best practices and standards.
developed at NFL to establish a lean yet supportive
structure to ensure controls for IT projects,
With a dedicated in-house SAP core team and our
investments & processes to streamline & organize
implementation partners, this two-year journey will
our IT Project Management process, respectively.
FOODS form the basis of our future business blueprint.
SINCE 1970
78 | Enrich with SAP Annual Report 2022 | 79

Quality, Innovations,
Research and Development Squeezy Masala Seasonings
This year, we launched a premium tabletop solution National Foods has been offering some authentic
for Ketchup and Mayo category offering a wide South Asian Recipe mixes in the Export market for
range of SKUs such as Tomato Ketchup, Chilli Garlic years. This year, we developed some interesting
Sauce in 400g and 800 sizes, Classic Mayo, Garlic fusion grill seasonings for steaks, vegetables,
Restructuring and Scientific & Regulatory Affairs team will continue to
chicken and burgers for our Export markets. The
operate in the Corporate and Shared Services Mayo, Real Mayo in the 370g and 700 g sizes. The
Agri Business Division special silicon valve insert in the flip-top cap
colourful blend of coarsely ground spices comes in a
structure.
shaker top bottle for ease in sprinkling and offers a
In continuation from last year where we had split the supports drip-free technology which was locally
versatile array of applications suitable and validated
Innovation Research & Development department Cost Optimization manufactured with our supply partners.
for the North American palette.
into two distinct segments: Emerging Business and
Core IRD Business; this year we added one more IRD undertakes vigorous efforts to reduce
strategic wing to further our roots into the ingredients costs by optimizing formulations,
Agri-Business division. substituting costly ingredients with less expensive
yet equally potent alternatives and developing cost
Core raw materials of National Foods Limited are optimized packaging structures in partnership with
agriculture based i.e., red chili, mango, carrot, our approved pool of Vendors. Multiple projects are
turmeric etc. and products being manufactured underway in different workstreams across the
from these materials contributing 70% plus sales of organization whereby IRD will be leading the Raw
the company. Pakistan’s agriculture per hectare Material and Packaging Materials workstream for
yield is low as compared to neighbouring countries Condiments and Snacks division next year as
like India & China and it is further dropping down due these businesses struggle to keep their
to techno-economic, natural, socio-economic and profitability intact.
financial problem. Further, there is no concept of Chunky Jams
contract or patent seed farming in the commodities Business Continuity The Jams category was hungry for some premium
being used by NFL. Hence, no competitive
IRD Culinary Division has provided continued and value-added formats, hence a special line of Pink Salt
advantage or unique selling point in terms of variety,
support to the Operations team at Port Qasim plant chunky jams Apple, Mango, Mixed Fruit, Strawberry Pakistan is blessed with natural deposits of Pink Salt
quality and taste profile.
in grinding capability enhancement project. Raw was developed and launched in a premium glass from the Himalayan range which is rich in trace
materials for which processing was previously bottle design with deep neck caps and beautifully minerals and popular throughout the world. It was
It was high time that NFL join hands with agriculture
outsourced are being converted to in-house designed colorful labels. A special supply chain for high time for NFL to step into this segment to further
sector and work alongside with famers for mutual
grinding after extensive production trial runs which fruit chunks had to be developed as we entered into our Salt business and offer value added attractive
benefits hence a separate department for
were conducted at Port Qasim plant by IRD and this segment. packaging formats to support this premium segment
Agri-Business was commissioned this year.
Operations teams. such as shakers, grinders, doy packs and bulk units
Emerging Business segment will continue to work for coarse and fine versions both.
towards identification and facilitation of emerging New Product Developments
trends globally into innovative products and portfolios. The IRD team has continued to work extensively to
drive rapid innovation by developing diverse, novel
For Core IRD business, the Culinary and Condiments products across multi-categories that serve both
team started reporting into the respective national and international consumers.
Businesses while the Packaging Innovations,
80 | Quality, Innovations, Research and Development Annual Report 2022 | 81

Desserts Renovation GCC Sauces
The Desserts category went through a renovation Our Sauce range (Red Chilli, Green Chilli, Mango Chilli,
Recipe PET Jars North America
this year with some packaging design changes in the Tangy Tamarind Chutney, Hot & Spicy and Chilli Garlic
Crystal Jello segment with added flavours such as Sauce) was not available in the GCC markets. The Our best sellers in Recipe (Tikka and Tandoori) are
Mango. Vermicelli bag design changes and Custard products and labels were adapted with the GCC being re-introduced into the North American market
sachet developments. This is to keep our lines fresh standards and market norms, registered with the in PET jars for the catering segment on consumer
and attractive for our consumers to enjoy. SFDA, Dubai Municipality and other trade levels to demand.
extend our tasteful experiences to our consumers in
the Middle East region as well.
Recipe Mixes Packaging Rejuvenation

IRD Culinary Division team played an active role in was not only based on theoretical determination of
the planning, execution and implementation of the spiciness levels of each product but was also
biggest changeover at NFL in recent years. For the validated by sensory evaluations.
new design, Culinary Division collaborated with the
Brand team to revamp the artwork text for the In addition to the Spice Meter, the new recipe packs
FSD Range for A-One Cash & Carry entire portfolio of Recipe Mixes category. This now have revised and improved cooking instructions
included the introduction of a “Spice Meter” – a for the ease of the consumer. The cooking methods
Rozana Range Line Extensions We have introduced our Ginger Garlic pastes and visual representation of the level of hotness of the have been reworded and presented in a more concise
Pickles (Mango, Mixed, Crushed) in a 5lb size of PET product on its packaging. For this hotness scale, the and easy-to-understand format. The revised cooking
Our Daal, Sabzi and Sabzi Gosht Masala rolled out containers to extend our bulk offerings. Similarly, a entire range of Recipe Mixes was categorised into 3 methods have also been validated through cooking
successfully in the local market were extended to new recipe of Ketchup was developed for the levels on the scale: Mild, Medium & Hot. This application before finalisation.
the international markets this year to offer a deeper catering segment in sachet format to compete with
penetration in our day to day cuisines. leading brands.
82 | Quality Innovations, Research and Development Annual Report 2022 | 83

Health, Safety & Environment company’s true image but will also enhance NFL to an area away from the population.
reputation as safety compliant and law-abiding
• SEDEX Audits which mainly evaluate safety and
company.
social compliance.
Fire Detection & Suppression System

HSE is deeply embedded in our business culture as Diagrams of all the Plants and then conducted Environmental Protection
To cater for any fire emergency, NFPA compliant
the group continues to evolve in this important area. HAZOP study at Port Qasim Plant. National Foods Limited considers it as its sacred duty
state-of-the-art addressable fire detection and
Every individual of the company continues to Recommendations emanating out of the process to cater for growing needs associated with
alarm system accompanied by fire suppression
contribute exceptionally well to foster a positive are now being closely reviewed for actions to sustainability and environmental protection. Every
system has been installed at Nooriabad Plant. The
HSE culture in the organization. Top Management’s enhance the safety of the plant. now and then NFL comes up with ways and means to
system also complies with provisions of Building
commitment, employee friendly HR policies, augment the government efforts to build a better
code of Pakistan.
increased safety awareness, timely reporting of Total Recordible Incident Rate (TRIR) environment for future generations. This year, Rs.
hazards & incidents and non-punitive approach 220 Million Effluent Treatment Plant (ETP) based on
TRIR is considered an important parameter to gauge IS0 45001:2018 Certification
towards those who come forward with information Membrane Bioreactor (MBR) advance technology has
the safety performance of any facility or company.
on hazards/Incidents have been the cornerstones Retained been made fully operational at Port Qasim plant
NFL as a whole succeeded in achieving astounding
of the overall success in this domain. It is a matter of immense pleasure and pride that all making it completely compliant to the provisions of
TRIR of 0.08 against the target TRIR of 0.27. Couple
of occurrences at PQ plant kept its TRIR at 0.14 our plants retained the certification against the Pakistan EPA/Sindh EPA.
Excellence in Health & Safety is NFL’s ultimate globally renowned International Management
whereas rest of the three plants at Nooriabad, SITE
target and every small stride in this direction will System Standard on Occupational Health & Safety Similarly, Strict Preventive Maintenance schedule is
and Gujranwala managed to achieve ideal figure of
bring us closer to our objectives. With this in mind, i.e. ISO 45001:2018. in place to ensure exhaust emission values meet the
0.00 Rescue.
NFL considers it rudimentary not only to implement legal requirements. Environmental monitoring by
conventional Occupational Health and Safety independent labs is carried out on regular intervals to
Trainings By Rescue 1122 & Other Important Highlights
Management System but also intends to go at ensure compliance of all critical parameters i.e.
greater lengths to implement more robust and Motorway Police • To enhance the health and safety of employees, ambient air, vehicle/exhaust emissions, noise, lux and
reliable Process Safety Management standards. As a classic example of partnership with the visitors and contractors, Old Cargo lift at SITE drinking water. A proper waste management system
community and stakeholders, Rescue 1122 was plant has been replaced with new Cargo lift. is in place as hazardous and non-hazardous waste is
Several notable measures were taken throughout engaged to conduct emergency response training • Considering the high risk posed by the Boiler, managed as per legal requirement though EPA
the year to augment the ever-improving safety session at Gujranwala Plant and Faisalabad project. electrical transformer and Medium Voltage approved vendors.
measure. Few of which are highlighted herein: Similarly, Motorway police was also engaged to switch gear rooms, these have been relocated
conduct 7 sessions on Road Safety trainings at all from high occupancy area near/inside the plant
Conduct of Hazop Study NFL plants and corporate office with events named
The purpose of the Hazard and Operability - HAZOP as “Safety on the Way”.
Study is to investigate how the system or plant
deviates from the design intent and creates risk for Safety Videos
personnel and equipment. The process also ensures Separate Safety videos for 4 plants and corporate
evaluation of operability problems. HAZOP studies office have been developed on different themes to
were initially used with great success within create awareness and conduct safety induction of
chemical and petroleum industry to obtain safer, visitors, contractors, suppliers and new employees.
more efficient and more reliable plants. But now its These safety videos will help in educating the
application is growing wider into all kinds of visitors understand the safety protocols and
industries. Hence, NFL whilst partnering with dynamics of the facility along with the measures to
VELOSI- a renowned name in the process safety be taken during an event of an emergency event.
Management first updated Piping and Instrument These videos will not only help in portraying
84 | Health, Safety & Environment Annual Report 2022 | 85

National Foods DMCC exploration & cultural curiosity - seeking flavors
from across the world and pushing boundaries
through food fusion. Building on this insight, last
year, we launched National Ka Pakistan Made Easy
(NKPME), our first multi layered digital platform built
FY 22 was a year of adaptation and staying resilient We challenged ourselves to build reach by ramping on food, culture & experience using Chefs from
in the face of this new normal whilst navigating up coverages across our focus markets and opening multiple ethnicities along with bloggers across
through a tough global macro-economic new markets altogether. In instances, we North America to create delicious fusion meals with
environment. Whilst COVID-19 continued to pose as restructured ourselves by adding additional an eastern twist.
a great disruptor in many instances across the value distributors to serve existing markets quicker and
chain particularly on the supply chain front, in many set the building blocks through key appointments in Building on that success, this year we dreamt bigger
instances it continued to act as a great accelerant core markets to enter new retail streams and and made NKPME our most expansive digital
opening new opportunities, channels of business channels of business going forward. execution yet by extending it across borders and
and driving digital transformation. ethnicities, taking consumers on a journey to 4
New Categories, Portfolio Extensions different regions - USA, Canada, UK and UAE with 5
Our primary focuses this year were geared towards & New Introductions Master Chefs and multiple influencers in each
supply consistency, expanding our footprint, market. This platform was built to engage with our
adapting to the changing consumer & retail dynamics, Key strategic rollouts on the Recipe Mixes portfolio
younger audiences and bring people together
staying flexible and being aggressive with a greater in the UK were completed to drive penetration of the
through dialogue around our shared love for food.
responsiveness to strategic opportunities that brand and facilitate trial by lowering the
presented themselves. This formed the core ethos of out-of-pocket expense for the consumer whilst we
extended our core Sauces portfolio to the GCC
Customized plans leveraging our JBP with Google, E-commerce Expansion
many key strategic decisions and initiatives that cost-effective sampling units that helped us
were undertaken this year. region to cater to the general market gap and ensure Last year saw us building on one of the key trends
achieve trial at scale and participation in festivals
consistency in our portfolio offerings between that gained disproportionate momentum fueled by
across key inflection points were carried out by
regions. the Pandemic, by launching our International
Driving Supply Chain Efficiencies market to drive both the core portfolio and strategic
E-commerce channel and setting up digital
new product rollouts that started from last year to
Whilst COVID did keep supply chain under pressure In parallel, as we look towards the future and target storefronts across multiple platforms in North
drive & own subsegments within the larger
particularly in the wake of global shipping a newer, highly globalized TG in our export markets, America.
categories we operate in.
challenges, it was instrumental to stay cognizant of two key categories were developed and launched to
the dynamic landscape to ensure gaps are broaden our consumer base with new and relevant This year, we built on that ecosystem by shifting our
highlighted early and quick corrective actions are product propositions and open new channels of efforts to the Middle East with our product range
taken to bring efficiencies into the system. business. being made available on Noon in KSA alongside
Amazon & Talabat Mart in the UAE to further
Improving the Distribution Footprint Extensive working was also done in close strengthen our presence and accessibility.
coordination with our subsidiary, A1 Cash & Carry, to
Whilst FY 22 saw some disturbance in two of our
develop and rollout a new portfolio geared towards
large export markets of Saudi Arabia and
Afghanistan, a key cornerstone was to continue
segments we currently were not operating in. Exhibitions
strengthening and expanding our distribution Being proud patrons of Pakistan’s heritage and
footprint across key strategic markets to increase Brand Building & Consumer culture, National had the pleasure of being a sponsor
our reach and capitalize on demand and supply gaps Conversion of the Pakistan Pavilion at Dubai Expo2020.
that supply chains across the world grappled to The globalization of food and migration of people are
fulfill. introducing new food traditions to the world where This year too, we participated in Gulfood 2022;
consumers are increasingly in a state of taste where we were finally able to reconnect with our
86 | National Foods DMCC Annual Report 2022 | 87

respective business partners in-person. We As a first, National also participated in the
constructed our first-ever double decker stall in International Food & Drinks Event (IFE) in the UK &
this exhibition to showcase our portfolio, discuss Fancy Foods in the USA, where we showcased our
opportunities with our business partners and meet portfolio to key customers that would help expand
new potential customers from different parts of our reach as we look to the future through our new
the world. category introductions.
88 | National Foods DMCC Annual Report 2022 | 89

We Enrich Our Peoples’
Skills and Abilities.
Stakeholders Information
Corporate
Organizational Chart
Human
Resources & Board of Audit
Remuneration Directors Committee
Committee
Company
Secretary
Chief
Corporate Internal
Executive
Audit
Officer
92 | Stakeholders Information Annual Report 2022 | 93

NFL Subsidiaries
NFL Organizational Chart Organizational Chart
Board of Directors Board of Directors
Chief Executive Officer Chief Executive

Officer
Quality,
Culinary Condiments NFDMCC Finance
Innovation, National Foods
Research &
Development DMCC (UAE)
Information Human
Manufacturing Supply Chain CEO Office
Technology Resources National Epicure Inc. National Foods
(Canada) Pakistan (UK) Ltd.
Legal
A-1 Bags & Supplies Inc.

Company Information
Board of Directors Auditors

Mr. Zahid Majeed Chairman Messrs. KPMG Taseer Hadi Shaikh Sultan Trust Building No. 2
Mr. Abrar Hasan Chief Executive Officer & Co. Chartered Accountants Beaumont Road, Karachi.
Mr. Ehsan Ali Malik Director
Mr. Ali H. Shirazi Director Share Registration Office
Mr. Adam Fahy Majeed Director
Mrs. Saadia Naveed Director CDC Share Registrar CDC House, 99-B, Block B, S.M.C.H.S.,
Mrs. Noreen Hasan Director Services Limited Main Shahrah-e-Faisal, Karachi-74400.
Tel: (92-21) 111-111-500
Audit Committee Fax: (92-21) 34326031
Mr. Ehsan Ali Malik Chairman
Mrs. Saadia Naveed Member Company Banks
Mrs. Noreen Hasan Member Bank Al Habib Limited Meezan Bank Limited Al Meezan Investments
Bank Alfalah Limited United Bank Limited Faysal Bank Limited
Human Resource and Remuneration Committee (Islamic Banking Group) Habib Bank AG Zurich Allied Bank Limited
Mr. Ali H. Shirazi Chairman National Bank of Pakistan MCB Dubai Habib Bank Limited (UK)
Mrs. Noreen Hasan Member Habib Bank Limited Toronto Dominion Canada Trust Bank
Mr. Ehsan Ali Malik Member Habib Metropolitan Bank Limited Bank of Montreal
MCB Bank Limited Business Development Bank of Canada
Director Corporate Finance / Chief Financial Officer
Mr. Syed Farhan Ali Rizvi
Registered Office 12/CL-6 Claremont Road, Civil Lines, Karachi-75530
Phone: (92-21) 38402022 & 36490029
Company Secretary Fax: (92-21) 35670996
Mr. Fazal ur Rehman Hajano
SITE Plant F-160/C, F-133, S.I.T.E., Karachi.
Head Of Internal Audit and Secretary Audit Committee Phone: 021-3257-7707 – 10, Fax: 021-3257-2217
Ms. Quratulain Mamsa E-mail: [email protected]
Internal Auditors Port Qasim Plant A-13, North Western Industrial Zone, Bin Qasim, Karachi.
Phone: 021-3475-0373 – 7
EY Ford Rhodes
Company Management Gujranwala Plant 53-KM G.T. Road, Chainwala Mord Amanabad,
Gujranwala near Gujranwala Kamoki Tool Plaza.
Mr. Abrar Hasan Chief Executive Officer Phone: 055-3409560, 3409660
Mr. Aejaz Abbas Basrai Chief Commercial Officer – Culinary
Mr. Ahmed Salman Director Supply Chain Nooriabad Plant A 393 Nooriabad Industrial Estate,
Dr. Fayyaz Ashraf Director Quality, Research and Development Nooriabad, Karachi.
Mr. Hasan Sarwat Chief Commercial Officer – Condiments Phone: 03000335287
Mr. Saleem Khilji Director Manufacturing
Mr. Shahid Saeed Director Information Technology Web Presence: Updated company information and the latest
Mr. Syed Farhan Ali Rizvi Director Corporate Finance Annual Report can be accessed at: www.nfoods.com

Calendar of Events
NFL Collaborates with WWF to save First ever FSD Chefs Roadshows Crushed Pickles Presents Like Ka Meta invites National Foods to Crushed Pickles & National Ketchup Launch of Conflict of Interest Policy
the environment conducted Chatkhara campaign Global Ramadan Insights Session! bring home the Effies
National Ketchup Factory Season 2
Launch of National Squeezy bottles Rozana Recipes Awareness NFL Sponsors Pakistan Learning BRC - AA Grade Certification
National Foods Partners with Haball

Campaign Festival 2021
FEBRUARY achieved for PQ Plant Launch of Chicken Stock Powder
for Digital Payment Service
NFL wins Best Corporate Report

Launch of Scene On New Mega
Thematic Campaign DECEMBER National Foods becomes available
on Talabat
Kick start of Enrich with SAP
program
2020 Award! Town Hall conducted for Q1 National Foods holds Suhoor Nights Launch of eAudiTracker
with District 19
AUGUST
International Chefs Day event held
National Flavors of Ramadan - Live JUNE
OCTOBER
Ramadan Transmission conducted
with celebrities
Launch of Trailblazers Program 2022
Launch of Dignity At National

Foods Policy
APRIL
JULY
NOVEMBER MARCH
Start of the new fiscal year!
JANUARY
MAY
National Foods celebrates 50
SEPTEMBER
NFL Cricket Team makes it to the
years of enrichment with a new Corporate Challengers Cup finals
Vision, Mission and mega events
for the NFL Family! Launch of new corporate identity
in line with the new Vision
MadeEasy 11.11 Mega Sale Creation of new Divisions for
Condiments & Culinary Town Hall conducted for Q2 & Q3 Launch of new Packaging for
WARC (World Advertising & National Foods Recipe Mixes
National Ka Pakistan MadeEasy NFL wins Annual CSR Award
Research Center) featured (NKPME) goes global
Launch of Premium Chunky Jams 2022 by NFEH Launch of NFL Hotlink
National Ketchup Factory and
Covid Vaccination Awareness Crushed Pickles digital-only National Foods creates waves at NFL receives Annual CSR Award PKR 1 Billion Milestone Unlocked
Session by Indus Hospital campaigns as a case study Karachi Eat 2022 by The Professionals Network for FSD

CEO Message
Dear Shareholders, appreciated and consumed by millions – thus

making our vision come to life with a new variety of
This past year has been filled with growth and flavors, re-uniting Pakistanis and introducing
achievement for National Foods Limited. Worldwide, international consumers to great tasting Pakistani
many businesses and institutions had no choice foods.
but to change the way they operated. However,
compared to other local and international This fiscal year, we commemorated our 50 years in
organizations, we have steadily gained momentum business with the new Vision & Mission rollout,
after facing two years of uncertain challenges celebrating our success and achievements over the
brought on from the unexpected COVID-19 past five decades. The jubilation comprised of 7
pandemic. events in 5 days and was shared with employees
and audiences at every location as the feeling of
Recent developments across the world have led to pride and warmth swept over those who took part.
rising prices of oil, gas, and transportation. Many
countries are going through recession or are facing This milestone was an excellent opportunity for
the imminent risk of economic collapse. National
National Foods to not just share the happiness with
Foods is prepared to withstand such challenges due
our employees but to also cascade the new brand
to our strength as an organization guided by the
story of the company. I am pleased to update you
company’s vision, its core values, and our
regarding the new website which has been rolled out
partnerships. Essentially the heart of the company
for the company. The corporate website has been
are the people who lead and strive to create
revamped, further highlighting our vision and our aim
possibilities every step of the way. This is what gives
to continuously penetrate the global market.
National Foods the confidence in our ability as a
company to steer the ship through turbulent waters.
To deploy our renewed direction with focus and agility,
we have also organized National Foods into two
50 Years of National &
independent business divisions. Effective 1st
International Success
January 2022, the 2 Divisions initially formed are:
The vision of National Foods is to create food that
• Culinary – constituting Recipe Mixes, Spices,
enriches the lives of people everywhere. Our promise
Ingredients, and Salt.
to our local and international customers is and will
always be delivering food made from only the finest • Condiments – constituting Ketchups,
ingredients. This is to ensure a healthier lifestyle by Mayonnaise, Pickles, Deserts, Jams, Jellies, and
consuming pure food which enriches consumer taste Food Services.
palettes, evoking a sense of contentment.
These 2 Divisions have been formed with dedicated
In the last decade, the company has shifted its Sales, Marketing, HR, Customer Service and Finance
focus towards international markets venturing into Teams. Regardless of this separation, both divisions
more than 40 countries across traditional and will remain as one business unit part of National
ecommerce channels where our products are Foods Limited.

Enrich with SAP relationship. To further capture and grow the New products have also been developed to cater
online market, National Foods sells products to to the international markets. This includes
Another major milestone for the year was the launch global best practices as well as improving controls
major ecommerce platforms in Pakistan. This interesting fusion grill seasonings for steaks,
of ‘Enrich with SAP’ Program. A transformational and visibility. ‘Enrich with SAP’ is a 2-year
ensures that we are always accessible and vegetables, chicken, and burgers for our export
program helping NFL move to the latest ERP, SAP implementation program which shall expand our
available for our consumers online, including both markets. The seasonings give a delicious kick to
S/4HANA Enterprise Suite will make the company SAP landscape to reduce time gathering information
more agile in business operations. and focus more on growing the business using data B2B and B2C platforms. various food items.
in a meaningful way.
SAP S/4 HANA Program will be a catalyst for National Foods has also formed a partnership with Business Expansion
National Foods by streamlining processes using Talabat, a food ordering company in the gulf region. A1 Cash and Carry has opened another outlet in
This will further improve the availability of our Kitchener, Ontario. This outlet caters to both other
products to our valued consumers in line with our businesses as well as direct consumers for their
ecommerce strategy. kitchen related needs. Through the A1 Cash & Carry
Performance for the Outgoing Year
distribution system, National Foods Limited is also
Key financial numbers of the group for the fiscal year are summarized below: The NFL Hotlink (111-111-NFL) which has been venturing into Food Services Division on an
established this year has made it possible for the international level by offering customized products
Amounts in PKR Million customers, home chefs as well as professionals to for the HoReCa channel.
Group Core Business A1 Bags & Suppliers Inc. get in touch with our experts. Customers calling on
the hotlink, locally or internationally will receive Brand Enhancement
FY22 FY21 Change FY22 FY21 Change FY22 FY21 Change
immediate assistance for their queries and provide
National Foods Limited being Pakistan’s No. 1 Recipe
Net sales 45,526 34,588 32% 27,141 23,417 16% 18,386 11,171 65% valuable feedback and suggestions, enhancing
Mix brand (Foresight Household Panel ’22) has
customer satisfaction.
Gross profit 12,979 9,752 33% 9,267 7,354 29% 3,714 2,398 55% launched redesigned packaging of its Recipe Mixes
Operating profit 3,717 2,942 26% 2,433 2,042 19% 1,289 900 43% category this year. The revamped design of recipe
In 2018, we initiated the Food Services Division
mixes range revolves around the concept of diverse
Net profit after tax 2,424 1,759 38% 2,216 1,573 41% 748 554 35% (FSD) with the goal of penetrating this segment and
and vibrant colors which depict the rich culture,
providing quality products to chefs and caterers. In
Earnings per share tradition, and national pride. The launch has been
(Rupees) 10.4 7.5 - 9.5 6.7 - - - - March 2022, we surpassed the PKR 1 billion FSD
supplemented by a holistic marketing campaign
milestone. The industry was challenged due to
Gross profit 28.5% 28.2% 0.3% 34.1% 31.4% 2.7% 20.2% 21.5% -1.3% consisting of online, print and out-of-home mediums.
COVID-19 pandemic however as the situation
Operating profit 8.2% 8.5% -0.3% 9.0% 8.7% 0.2% 7.0% 8.1% -1.0% improved, the team picked up pace to realize its
National Ka Pakistan Made Easy (NKPME) went
goals and achieved 4x growth in 4 years.
Profit after tax 5.3% 5.1% 0.2% 8.2% 6.7% 1.4% 4.1% 5.0% -0.9% global collaborating with a diverse range of
Furthermore, keeping in line with our 5-year FSD
international Chefs to create food fusions with
* This includes amortization of Rs. 15 million (2021: RS. 13 million) on intangible recognized on consolidation strategy and backed by our tradition to introduce
National products. This created a platform, for chefs
of A1 Bags & Suppliers Inc. best quality products, we launched National Chicken
to gather and experiment with food across borders.
Stock Powder; a superior product to elevate the
* Group PAT includes A1 at 60% and excludes intercompany dividend of 186M (2021: 140M)
taste, aroma and flavor of every dish. Specialized Flavors of Ramadan, a live program showcased on
products like these help us in advancing in the digital platforms was conducted to augment
HoReCa market. seasonal activities. It consisted of renowned chefs
New Channels of Growth new channel has crossed Rs. 164 million in this and celebrities connecting with the audience and
fiscal year. The Condiments division has released two preparing flavorful food dishes.
New Product Channels innovative products, National Chunky Jams which
MadeEasy, our own Direct-to-Consumer channel, is a new premium variant consisting of an As proud patrons of Pakistan’s heritage and culture,
The company has deployed new organization sells products and promotional bundles along with improved texture with added fruit content. National Foods had the pleasure of being a sponsor
structure to realize the ecommerce potential providing easy-to-follow recipes. This allows our National Squeezy bottles have also been of the Pakistan Pavilion at Dubai Expo2020. We
which is growing at 5% CAGR in Pakistan. This consumers to directly interact with us and build a produced for seamless use by consumers. also participated in Gulfood 2022; where we were

able to reconnect with our respective business Dignity at Work/NFL policy has been implemented in developing robust digital platforms where
partners in-person. The NFL double decker stall along with a Non-Compliance Reporting System. customers can buy our products, share their
stood out in the exhibition showcasing our diverse This system provides a dedicated communication feedback, and interact with our professionals at
portfolio and helping us meet potential customers channel to report concerns. Complete the click of a button.
from different parts of the world. confidentiality is ensured which creates space for
a professional and transparent code of conduct. With this spirit, we pledge to keep scaling new
Awards & Accolades This newly established system holds as a heights and exceeding our consumers’
reminder that all employee concerns and their expectations for the future years to come
In the last year, our hard work, resilience, and
wellbeing is a priority at National Foods. through a renewed vision.
resolve resulted in a number of awards and
accolades that gained us recognition for our
commitment to quality and excellence. Future Outlook
National Foods won the Effie’s Award for two of its Building on our growth and performance inertia
brand campaigns, Bronze Effie for National from past year we are focused on actively
Ketchup Factory in the category of Branded responding to changing consumer behaviors, Abrar Hasan
Content and Silver for National Crushed Pickles in capitalizing on new opportunities, and continuing to Chief Executive Officer
the category of Marketing Innovation Solutions. sustainably grow our purpose driven organization.
Furthermore, we received another BRC - AA Grade The geo-political situation and post-pandemic
Certification for our Port Qasim plant, the highest recovery has created economic and inflationary
awarded grade against the BRC audit. This pressures worldwide. Amidst all these challenges,
certification is internationally recognized and the company has shown growth and has plans to
benchmarked against Global Food Safety further expand the business. NFL has invested in
International (GFSI), reducing time, cost, and providing a state-of-the-art facility located in Faisalabad.
protection to our brand and customers. The company This investment builds capacity for the future and
is committed to excellence in all its endeavors. paves the road towards achieving operational
excellence. This factory will provide job
Environmental Stewardship, Social opportunities to locals and professionals around
Responsibility and Corporate the country.
Governance (ESG)
National Foods realizes the importance of curbing
National Foods being a socially responsible imports and promoting exports. The company has
organization has taken various initiatives towards increased its efforts in boosting exports by taking
environmental sustainability. Due to climate initiatives to expand company’s global footprint by
change and the ever-increasing attention towards making our products available for a diverse range
global warming, the company has collaborated with of consumers. Globally, we aim to be a brand that
the World Wildlife Fund (WWF) by planting customers can confidently place their trust in.
thousands of mangrove saplings. This is critical for
not only the conservation of marine life but the Much of the population has been vaccinated
livelihood of dependent locals who live along against the COVID-19 virus hence most
Pakistan’s coastal areas. businesses have resumed operating at their full
capacity. During the pandemic, many companies
We are committed to protecting and empowering including National Foods have realized the high
employees, customers and stakeholders potential of the digital market. As a result, we are
associated with the company’s value chain. The now also conducting business online by investing

We Enrich Our Strategies
for Growth & Success
Corporate Governance

Directors’ Profile
Since then he has served in various capacities at

NFL from heading the Corporate Marketing function
to most recently establishing the International
Business subsidiary, National Foods DMCC. He also
introduced the concept of sustainability by
establishing a Corporate Social Responsibility (CSR)
platform here at NFL. Mr. Zahid Majeed played a
significant role in initiating a Public-Private
Partnership with UNICEF to launch the first Iodized
Salt in the mid 1990’s under the CSR umbrella along
with various other education, health and nutrition
initiatives with focused efforts to address women
empowerment.
Mr. Zahid Majeed also heads the Textile, Energy,

Environment Business and Investment Divisions
MR. ZAHID MAJEED with in the Associated Technology Consultants
Chairman Private Limited (ATC). Mr. Zahid Majeed studied
Philosophy, Politics and Economics at Magdalen
College, Oxford University and later acquired a
Mr. Zahid Majeed joined Masters Degree in Textile Technology at University
of New South Wales, Australia. Recently, Mr. Zahid
National Foods Limited in Majeed also qualified for the Certificate in Company
1987 and pioneered its Direction from the Institute of Directors (IOD),
London, an International Certification that proves
transformation from a small his commitment to the highest standards of
food enterprise into a leading Corporate Governance.
food brand in Pakistan.

Mr. Hasan joined NFL as Plant Director in 1993 and Through the platform of the Pakistan Advertisers His local and national activities include:
held that position for 4 years. He was elected Society (PAS), Mr. Hasan was part of the team which
Deputy Managing Director in 1997 and then as Chief launched TAM Peoplesmeter in Pakistan in Board Memberships
Executive shortly thereafter. In 1996, he led the September 2007 and the MEMRB Consumer 14 • National Foods Limited (Public Listed)
development of a comprehensive Human Resource insight Survey, in August 2008, both first of their
Management System which was the first of its kind kind tools in Pakistan. He has also pushed for • National Foods DMCC UAE (Private)
for any national company in the country. He also led regulating advertisement ethics via PAS. As past • National Epicure International, Canada (Private)
the development of an international marketing Chairperson, Anti-counterfeit and Infringement
• A1 Cash and Carry, Canada (Private)
infrastructure starting in 1999. Forum (ACIF), Mr. Hasan strongly supports creating
awareness about counterfeit and IP infringement • ATC Holdings Ltd (Private)
As the Chief Executive, Mr. Hasan is providing among consumers and other stakeholders. • ATC Technology Consultants Ltd (Private)
direction and leadership to the Company by setting
a clear vision for future growth, which aims to create Mr. Hasan is a staunch supporter of Corporate • Associated Energy and Environment
Social Responsibility; an Adult Literacy Program for Solutions Ltd (Private)
food that enriches the lives of people every where;
not just geographically but through multiple women was started at NFL as early as the year • Cherat Cement Ltd (Public Listed)
customer touchpoints. . The Company is set to 2000. In 2007, he spearheaded the development of
MR. ABRAR HASAN deliver its long-term goals by focusing on top brands, a Sustainability Strategy, which is guiding all
• Friesland Campina Engro Pakistan Ltd
Chief Executive Officer growing customer base and aggressive international business functions across the board till today and (Public Listed)
expansion. focuses on Responsible Business Practices and • Chairman, Naymat Collateral Management
Triple Bottom Line. Company (Private)
Mr. Hasan has actively pursued new market
Abrar Hasan is the Chief opportunities and delivered successful strategies to As a visionary and marketing leader, Mr. Hasan
• Pakistan Business Council (Section 42)
Executive Officer of National drive NFL’s vision, focusing on continuous innovation, has addressed audiences of a diverse section of
highest standards of quality and superior consumer marketing organizations, conferences, seminars, Other Associations
Foods Limited, the leading value. He has steered the company to deliver steady educational institutions, and various publications.
• (Past) Chairperson, Anti Counterfeit and
multi-category food sales growth year on year, clearly evident from the
dramatic expansion in sales, from only Rs. 200
He has appeared on several business TV talk
shows discussing the business environment and
Infringement Forum
company in Pakistan million in 1993 to Rs. 50 billion today; an enviable economy in general. He has been the recipient of • (Past) President, Pakistan Advertisers Society
growth rate, ranging from 20% to 30% each year; numerous accolades, including Marketing
producing over 250 different despite tough economic conditions. This is a result Excellence Award 2008 from the Marketing
• (Past) Member, The Health Foundation
• Member, Management Association of Pakistan
products, marketed both in of foresightedness into providing dedicated focus to Association of Pakistan (MAP).
each category and a customer-centric approach. • Member, Marketing Association of Pakistan, and
Pakistan and exported to 40 Mr. Hasan has also played a leading role in the
• Founder member, Editorial Advisory Board,
countries worldwide. Under Recognizing the vital role of Information Technology
in business development, Mr. Hasan brought about
establishment and working of Pakistan’s first
Collateral Management company, Naymat Collateral
Triple Bottom Line magazine.
his leadership, NFL has an IT revolution in the Company. In February 2003, Management Company, that will bring formal credit Mr. Hasan resides in Karachi, Pakistan, and is a
NFL became the first local food company to put in to the farmers through financial institutions. He graduate of the Krannert School of Management at
become a Rs. 50 billion an ERP system (Scala) which was subsequently currently is the Chairman of the Board. the Purdue University in Indiana.
conglomerate, with ISO: 9001, upgraded to SAP ERP system, in a record 6 months
deployment. Currently, National Foods is in the
ISO: 22000, HACCP & BRC process of incorporating SAP S/4HANA which is the
certifications along with latest ERP by SAP and enables to take quicker and
more accurate business decisions.
numerous industry awards.
110 | Corporate Governance Annual Report 2022 | 111

Advancements such as Oracle based ERP system in
Mrs. Hasan being awarded with two First classes for 2003-04 enabling the team to adapt quickly and be
her dissertation on “The Guatemalan Crisis of 1956 more responsive to the current and future challenges
and Anglo American Relations”, it was published by leading to the successful implementation of SAP
the University. along with its business intelligence and other
value-added models. Saadia is a true team leader who
Mrs. Hasan’s experience is well focused on CSR and works closely with Departmental Heads to further
philanthropic activities. Her present involvement improve organizational systems, processes and
includes activities for the “Children’s Cancer policies. It is her contribution and sound knowledge of
Foundation Pakistan Trust”. She has actively finance that made EBM a self-sufficient and
organized and raised funds on a continuous basis for debt-free organisation.
the Trust which is now affiliated with the Indus
Hospital to increase sustainability and awareness. Saadia also represents the Boards of Shield
On a smaller scale, Mrs. Hasan has also been Corporation, Employers Federation of Pakistan (EFP),
involved in various other charity groups some of Education Fund for Sindh (EFS) and Management
which include financially supporting the Education Association of Pakistan (MAP). She was the first ever
MRS. NOREEN HASAN and Children’s Health Organization (Echo) MRS. SAADIA NAVEED female President of MAP from June 2013 till March
Non-Executive Director Foundations in Gharo and sponsoring Non-Executive Director 2015. As President of MAP, she contributed
underprivileged children for a school in Rashidabad. significantly to raise the profile of what is already one
of the most acclaimed management organisations in
Mrs. Noreen Hasan Having an experience of the country. She focused on creating greater
graduated in 1991 after almost two decades working at awareness of good management practices, and
promoted the recognition of companies who actively
completing her Bachelor’s a senior executive position at engaged in them.
English Biscuit Manufacturers

Degree with HONS in Saadia is a great example of a dynamic leader and an
Pvt. Ltd. (EBM), Saadia Naveed inspiration for Pakistani women aspiring to take
“Medieval and Modern World being the Director and leadership roles. In 2012, she received Marketing
History” from the University Shareholder in the Company,

Excellence & Wonder Women of the Year awards for
her contributions to business excellence in Pakistan.
of Birmingham, UK. is currently the Deputy Soft-spoken, a true friend and deeply interested in
uplifting the lives of those around her, she is a keen
Managing Director of EBM. supporter of various philanthropic initiatives in
addition to her professional role. She is also an active
Mrs. Saadia Naveed, after her graduation, moved to member of several professional organizations
the field of Chartered Accountancy and was including Employers’ Federation of Pakistan (EFP),
associated with A.F Ferguson & Co. for over four Institute of Directors (IOD) London, National Academy
years, conducting and supervising audits in various of Performing Arts (NAPA), Korangi Association of
national and multinational organizations. Trade & Industry (KATI), Karachi Chamber of
Commerce & Industry (KCCI), Arts Council of Pakistan
Saadia held the challenging position of Director and Executive Committee Member of Management
Operations in the year 2002, prior to her appointment Association of Pakistan (MAP) since 2006. Saadia
as Deputy Managing Director in 2008. Under her was also the President of MAP, the first ever female
stewardship, EBM has witnessed remarkable President, from June 2013 to March 2015.
achievements like exponential volume growth,
enhancement of Production capabilities and Technical

PBC’s objective is to lobby for the transformation of He has worked with the Bank of Tokyo-Mitsubishi in
policies and operating environment to achieve New York as well as American Honda in Torrance,
sustainable growth, employment and exports. Prior California. He is Group Director Financial Services
to joining PBC in January 2016, Ehsan was the Chief and President/Chief Executive of Atlas Battery
Executive Officer of Unilever Pakistan for nine years, Limited. He is on the Board of Atlas Asset
a period in which the business quadrupled in size. In Management Limited, Atlas Insurance Limited,
a 24 years’ career with Unilever, Ehsan served as National Management Foundation (sponsoring body
CEO of Unilever Sri Lanka, led the consolidation of of LUMS), National Foods Limited, Cherat Packaging
Unilever’s regional businesses in Egypt, Lebanon, Limited, Pakistan Cables Limited and Pakistan
Jordan and Syria and spent several years in the Society for Training and Development (President).
head office in the UK. Before joining Unilever in 1991, Previously, he has also served on the Board of
National Clearing Company of Pakistan Limited
Ehsan worked for a Pakistani conglomerate with
(NCCPL).
interests in media, pharmaceuticals, hotels, tractor
assembly and oil lubricants in partnership with
He is a 'Certified Director' from the Pakistan
Wyeth Laboratories, Intercontinental Hotel
Institute of Corporate Governance and in 2018
Corporation, Ford and Gulf Oil. Ehsan is Member of
completed the Owner/President Management
MR. EHSAN ALI MALIK the Board of Directors of Abbott Laboratories MR. ALI H. SHIRAZI Program (OPM) from Harvard Business School.
Independent Director Pakistan Limited, Gul Ahmed Textiles Limited and Independent Director
Standard Chartered Bank Pakistan Limited. A fellow
of the Institute of Chartered Accountants of
Ehsan Ali Malik is the Chief England and Wales, Ehsan is alumni of the Wharton Mr. Ali H. Shirazi graduated
and Harvard Business School.
Executive Officer of Pakistan with a BA from Yale
Business Council (PBC), a University, U.S.A. in 2000 and
research-based business thereafter completed his
advocacy body representing Masters in Law from Bristol
the leading businesses in University, U.K. in 2005.
Pakistan, including 34
multinational companies from
14 countries.

Mr. Adam Fahy-Majeed graduated from the
University of Leeds in 2019, receiving a first class
Joint Honours BA in History of Art and Italian.
Adam has been involved in a wide variety of artistic

projects relating to his field of academic expertise,
including: the first Karachi Biennale in 2017
(curatorial team member); Amin Gulgee’s 7 and 7.7
solo-exhibitions, Rome, 2018 (assistant curator);
The Trojan Donkey, 2020 (curator); Healing II, Karachi,
2020 (curator); The Q Rickshaw Project, Karachi,
2022 (curator). He was the curator of Amin Gulgee’s
most recent solo-exhibition, The Spider Speaketh in
Tongues, at the South Asia Institute, Chicago, 2022.
His writing has been published in numerous
catalogues, as well as in the form of feature-length
MR. ADAM FAHY MAJEED articles for The Friday Times.
Non-Executive Director
Adam is the Chief Growth Officer of ATC Holdings, a
role which allows him to traverse all aspects of the
Adam Fahy-Majeed received group in the endeavour of maximising growth
opportunities and expanding the business locally
his Master’s degree in and internationally. This includes innovations,
Modern and Contemporary international expansion, new product development,

and the pursual of new business ventures.
Art History, from the School
of the Art Institute of
Chicago in 2021.

Board Committees Human Resource and ● Recommending Human Resources Management
Remuneration Committee policies to the board;
The committee consists of two Independent and ● Recommending to the Board the selection,
one Non-Executive Directors. The committee is evaluation, compensation (including retirement
responsible for dealing with matters relating to benefits) and succession planning of the Chief
Audit Committee
human resource policies including training, Executive Officer;
The Committee assists the Board in the effective ● Recommend the appointment of external remuneration, performance evaluation and
discharge of its responsibilities for corporate auditors to the Board of Directors and consider ● Sending the selection, evaluation and
succession planning. The brief terms of reference of
governance and financial reporting. The Audit any questions of resignation or removal of compensation (including retirement benefits) of
the Human Resource and Remuneration Committee
Committee comprises of one Independent and external auditors, if any, audit fees and Director Corporate Finance, Company Secretary
are as follows:
two Non-Executive Directors. The Chairman of provision by external auditors of any service in and Head of Internal Audit to the Board for
the audit committee is an Independent Director. addition to audit of financial statements; ratification of HRRC’s review.
The brief terms of reference of the audit
● Review management letter issued by the
committee are as follows:
external auditors and management response
Name of Director Status in HR&RC Committee Status as a Director
● Review quarterly, half yearly and annual thereto;
financial statements of the company prior to
● Determination of appropriate measures to Mr. Ali H. Shirazi Chairman Independent Director (Non-Executive)
their approval by the Board of Directors;
safeguard the Company’s assets;
● Review preliminary announcements of results Mr. Ehsan Ali Malik Member Independent Director (Non-Executive)
● Review company's risk management approach
prior to publication; Mrs. Noreen Hasan Member Non-Executive Director
including the identification of Corporate Risks
● Review and approve annual internal audit plan; and related mitigation/response plans and
compliance reports; and
● Review the internal auditors' proposed audit
scope and approach; ● Ensure the board is aware of matters that may
significantly impact on the financial condition
● At least once a year, meeting external auditors
or affairs of the business.
without Director Corporate Finance and
Internal Auditors; ● Consideration of any other issue or matter as
may be assigned to the Committee by the
● At least once a year, meeting Internal Auditors
Board of Directors;
without Director Corporate Finance and
External Auditors;
Name of Director Status in Audit Committee Status as a Director
Mr. Ehsan Ali Malik Chairman Independent Director (Non-Executive)
Mrs. Saadia Naveed Member Non-Executive Director
Mrs. Noreen Hasan Member Non-Executive Director

Corporate Governance Our Directors are reminded of insider trading and The Company treats all questions and issues
avoid in the dealing of shares during the closed confidentially, where possible, while investigating
period. The Company’s Board has been constituted fairly, cooperating with governments, and complying
in compliance with the provisions of the Companies with legal obligations.
Act, 2017. The members of the Board, including
Our ability to deliver our vision and create long-term Reporting and investigating concerns Non-Executive and Independent Directors exercise Corporate Briefing Session
value and benefit for our shareholders and full independence and highlight and recuse
We encourage people to speak up if they have any NFL's Investor briefing was held on 15 October 2021,
stakeholders emanates from our governance themselves in case of any possible conflict of
concerns relating to illegal or unethical conduct or interest as is expected from their role. All Friday on MS Teams/video conferencing.
structure operated by the Board across the
behavior that is inconsistent with our values. observations / suggestions of Board members
Company.
Anyone within the Company can raise concerns or during their proceedings are accordingly recorded. Investors attending the event displayed great interest
speak to the Whistleblowing Officer confidentially. in the affairs of the Company. The presentation was
Exceeding Legal Requirements followed by a Q&A session which was well addressed
We take every reported concern seriously and Safeguarding of records
The Company strives to operate transparently, review each one to understand whether a formal to the satisfaction of the audience.
consistently, and timely comply with all prevailing The Company effectively ensures the safety of its
investigation is warranted. If our investigations show
laws and regulations of Pakistan. We take pride in records which are retained as required to meet legal, The presentation from the Corporate Briefing
that an employee has breached our policies, we take
proactively complying with many additional legal administrative, operational and other requirements Session can be viewed on the Company’s website
requirements which were not mandatory. appropriate disciplinary action. The Dignity at NFL
of the Company. under “Investors” section.
portal also helps in anonymous reporting in case of a
In addition to all the mandatory requirements of breach of code of conduct.
Whistle Blowing Policy Redressal of Investors’ Complaints
the laws and regulations of Pakistan, some
examples are given below: Inside Information Register The Company is committed to conducting the The Company aims to provide its shareholders,
business with honesty and integrity. All members of potential shareholders and other stakeholders with
In compliance with the regulatory requirements, staff are expected to maintain high standards in all relevant f inancial and similar information as
a. The Listed Companies (Code of Corporate
Governance) Regulations, 2019 encourage all the Company ensures that it maintains Insider accordance with applicable laws, regulations and the effectively and as timely as possible, in order to
directors to obtain directors’ training Information Register, which is updated on a regular Company Code of Conduct and are encouraged to provide more insight into the Company and the
certifications. Six (06) directors of the Company basis. promptly raise concerns of possible misconduct, sector. Further, the Company is committed to
have already acquired certifications. However, potential conflicts, or known breaches with the ensure that grievances notified by the
the newly appointed director’s training is due Conflict of Interest Among Company’s Code of Conduct, and other company shareholders are handled and resolved efficiently
within this financial year. policies and procedures. In such instances,
Board Members employees are encouraged to report any
at an appropriate level.
b. The Company has defined standards and As per Code of Corporate Governance, every nonconformity through their respective HRBPs or
guidance to the best of its ability that act as Any complaints/reservations received from the
Director is required to bring to the attention of the Line Managers. In some cases, the transgression is
security measures to protect employees, investors are considered, discussed, resolved and
Board complete details regarding any material also reported directly to the Whistleblowing Officer
operations, property and information against the communicated in due course by appropriate level of
transaction which has a conflict of interest for prior or Chairman Audit Committee. Action is then taken
threat of attacks, intrusions, loss, injury, damage authority in the Company.
approval of the Board. The interested Directors by the Company accordingly.
or abuse including unauthorized disclosure or
access to information. Further as per OHSAS neither participate in discussions nor vote on such Shareholders can submit a complaint through email
Protection for Whistleblower
18000, the Company committed to prevent matters. Further, complete details of all transactions i.e. ([email protected]) which is also
injury, ill health and continual improvement in with related parties are submitted to the Audit available on the Company’s website in line with
The Company does not tolerate retaliation against
Occupational Health & Safety (OH&S) Committee which recommends them to the Board whistle blowers in any way and concerns can be directives of SECP. The grievances can also be
management and Occupational Health & for approval in each quarter. These transactions are reported without fear of detrimental treatment. If notified through phone call or post to the Company.
Safety performance also fully disclosed in the annual financial the whistle blower raises concerns in good faith, he
statements of the company. or she will not be subject to any detrimental The Company adheres to the practice of responding
c. The Board of Directors of the Company
treatment including dismissal, disciplinary action, to shareholders’ complaints within prescribed time
comprises of two female Directors.
threats or other unfavorable treatment. from the receipt thereof. A letter/email in this regard

is sent to the shareholders with intimation to the Role of Chairman
Shares Registrar/SECP/Stock Exchange duly
The Chairman provides leadership and governance
signed by the Company Secretary.
to the Board. The Chairman has the responsibility to
monitor and ensure the effective functioning of the
Investors’ Section on Website
Board. The Chairman ensures that the Board as a
In order to provide ease of access to our whole plays a full and constructive part in the
shareholders and stakeholders, the Company’s development and determination of the
latest information for investors is available on our organization’s strategies and policies. Furthermore,
website, under the “Investor Relations” the Chairman also ensures that the organization’s
(http://nfoods.com/). This page is updated regularly strategies are being fully implemented effectively.
in order to provide transparent, adequate and up to The Chairman conducts the Board meetings and
date information. ensures that all Directors fully participate in the
decision-making procedure of the Board.
CEO Performance Review
The CEO provides an overview of the Company’s Role of Chief Executive Officer
performance to the Board and addresses any The CEO leads the management in the day-to-day
specific questions of the Board members. The running of the organization’s business in accordance
performance of the CEO is assessed through the with the business plans and within the budgets
evaluation system set by National Foods Limited. approved by the Board. The CEO is also responsible
The principle factors of evaluation include financial for oversight of the directions of the Board, in
performance, business processes, compliance, accordance with the Companies Act. It is the
business excellence and people management. responsibility of the CEO to ensure that the
organization’s resources are allocated efficiently.

Management Commitee
From Bottom Left: From top left:

Mr. Saleem Rafi Khilji Mr. Hasan Sarwat Mr. Ahmed Salman
Director Manufacturing Chief Commercial Officer – Director Supply Chain
Condiments
Mr. Abrar Hasan Dr. Fayyaz Ashraf Mr. Shahid Saeed

Chief Executive Officer Director Quality, Director Information
Research & Development Technology
Mr. Syed Farhan Ali Rizvi Mr. Aejaz Abbas Basrai

Director Corporate Finance Chief Commercial Officer – Culinary

We Enrich People,
the Environment & You
Environment, Social Responsibility
& Governance (ESG)

Environment, Social Responsibility
& Governance (ESG)
4
Quality
Education
As part of commitment to community, NFL endeavors to

increase focus on education. We believe that the key to a
better Pakistan is a literate Pakistan.
Bawaqar Scholarship Children’s Learning Festival
As part of commitment to community, NFL In our effort to increase literacy in the country,
endeavors to increase focus on education. National Foods partnered with CLF to spread the
message of education and inculcate reading habits
We believe that preparing students for the world is amongst the youth of Pakistan. It was a three-day
pertinent in improving their chances of making a event held to celebrate the 73rd anniversary of
mark for themselves. With this in mind, as part of Pakistan.
our golden jubilee celebrations, the Company
awarded 20 scholarships to the employees’
school-going children. The scholarship covers
tuition fees and the cost of books for a year. Half of
the children receiving the scholarship are girls.
The policy is applicable for one school-going child

of the selected individual via e-balloting. Eligibility
covers one child per employee that is currently
enrolled in a school (from class 1 to class 10).
This is just one of the initiatives to create a literate

and empowered Pakistan.
128 | Environment, Social Responsibility & Governance Annual Report 2022 | 129
Partnership with Ubuntu Care for NFL Daycare
5
Gender
The company joined hands with Ubuntu Care, experts in daycare services centered on the Finnish Model
of Early Childhood Development (ECD). In late 2019, the company joined hands with Ubuntu Care - experts
in daycare services centered on the Finnish Model of Early Childhood Develpment (ECD), to re-model and
manage the in-house NFL daycare. Ubuntu and NFL worked together to design a space that is not only
Equality developmentally appropriate for children, but also keeps safety in high consideration. Unfortunately, the
new NFL daycare remained non-operational for 18 months due to the emergence of COVID-19 pandemic,
however, it resumed its operations in the new space with a new management in September 2021 along
National Foods is committed to empowering women and with new SOPs related to the spread of COVID.
ensuring their equal participation in the economy. The The space encourages learning through play and has ample learning materials that encourage multiple
company is committed to raising the bar industry-wide areas of intelligence, such as reading, cognition, music, art, and has equipment for developing fine and gross
motor skills. The daycare provides an opportunity to those children born during the pandemic to learn and
for better equality practices. practice social skills with their teachers, caregivers, and peers while balancing the need for independence.
Behbud Welfare Organization
National Foods has been supporting Behbud (which In March 2022, National Foods partly sponsored
means “Advancement”) a non profit organization in the Behbud Spring Fiesta, a popular bazaar held
Karachi for a number of years. Behbud’s main focus is annually where artisans and vendors promote and
on community development by providing quality sell their wares. Proceeds from the event help
education, subsidized healthcare programs, and finance their community development programs.
specialized vocational training and income generation
programs in marginalized communities. Behbud is
managed entirely by female volunteer staff.
Effluent Treatment Plant
6 National Foods Limited considers it as its sacred EPA/Sindh EPA compliant. The treatment plant aims
duty to cater for growing needs associated with to improve water quality by reducing pollution,
thereby eliminating release of untreated
sustainability and environmental protection. Every
wastewater.
Clean Water now and then, NFL comes up with ways and means
to augment the government efforts to build a better
& Sanitation environment for future generations.
Similarly, a Strict Preventive Maintenance schedule
is in place to ensure exhaust emission values meet
the legal requirements. Environmental monitoring by
This year, Rs. 220 Million worth Effluent Treatment
Pakistan has changed from being a water abundant to a Plant (ETP) based on Membrane Bioreactor (MBR)
independent labs is carried out on regular intervals
to ensure compliance of all critical parameters i.e.
water scarce country. NFL, being truly National, is advance technology has been made fully
operational at Port Qasim plant making it
ambient air, vehicle/exhaust emissions, noise, lux
and drinking water.
working to address this concern by working on drinking
water and treatment of waste water.
Mineral Water Facility at SITE Plant
In November 2011, National Foods set up a mineral

water plant to facilitate drinking water needs of all of
its facilities in Karachi. The plant has the production
capacity of 3000 gallons per day and has been
providing clean drinking water to its staff for
household use. The quality of the mineral water is
benchmarked against the top bottled
manufacturers in the country.
In 2015 the decision was made to provide mineral

water free of cost to all its non-management staff
relieving them of the challenge of acquiring clean
drinking water for themselves and their families.
Over the last few decades, Pakistan has drastically

changed from being a water-abundant to a water
stressed country, with majority population facing
severe water scarcity. Citizens face problems of
erratic supply of water which is frequently not fit for
consumption.
This year, the mineral water plant at SITE has refined

235,000 gallons of water. This program is our small
contribution towards helping families gain access to
safe and affordable drinking water.
13
Climate
Action
As part of NFL’s Eco-Friendly Campaign, the initiative

involves reducing up to 25% paper usage in packaging of
Recipe Mixes.
Plantation Drive with World Wildlife

Fund (WWF)
With ever-increasing focus on Global Warming and

Climate Change, we all need to do our part in making
this planet greener for generations to come. As part
of NFL’s Eco-Friendly Campaign, the initiative
involves reducing up to 25% paper usage in
packaging of Recipe Mixes.
This initiative will in turn result in reduced tree felling

of hundreds of trees. This is a big milestone towards
Responsible Business Practices. To further
augment the campaign, National Foods Limited
(NFL) has collaborated with World Wildlife Fund
(WWF) in Pakistan to protect the environment by
encouraging tree plantation and reforestation.
Through this resourceful collaboration for NFL’s
#LetsPlantOurFuture campaign, thousands of
mangrove saplings have been planted, which are
critical to the conservation of marine life and those
dependent on it along Pakistan’s coastal areas.
We Enrich the
Environment for a
Better Tomorrow
Business Review
Chairman’s Review
My fellow Shareholders, problems being faced globally. In addition, we

continue our expansion thrust internationally. Most
A Historic Year for National Foods critically we are investing in the capabilities of our
The year 2021 -22 was a historic year for us . We people to make this vison a reality.
celebrated our Golden Jubilee across the company
in all locations and regions and symbolically we Board’s Overview & Performance
crossed the major milestone of over PKR 50 billion in The new Board and its committees have been
revenue while generating a record profit of over PKR performing their role of Corporate Governance and
2.4 billion. providing the Company with excellent strategic
direction in these unpredictable times with great
Financial Highlights of the Company pragmatism, business acumen and diligence.
The Financial year has been another year of high
performance and growth for the company which The primary objectives of ensuring the long-term
generated PKR 58.9 billion in revenue , a massive year business success and enhancing shareholders’
on year growth of 26%. This impressive growth was value continue to drive the Board’s ethos.
driven by 16% growth in local sales and record
breaking 56% growth in our International Business Appreciation
which now contributes 46% of our Net sales. The Board acknowledges with gratitude the
outstanding efforts of our management, employees,
On behalf of the Board of Directors I would like to and stakeholders in contributing to face the
appreciate A-1 Bags & Supplies, in particular for their challenging economic situation with resilience,
extraordinary performance. determination, and agility.
These strong results reflect the strength of your In this very special year for the Company, we also
Company in terms of diversity of business and remember and thank our Founders and all those who
product categories as well as geographies. Indeed, have played their historical roles in the growth of
we now have developed into a true MNC in terms of your Company into a Pakistani MNC that we can all
having more than 40% of our turnover outside be proud of.
Pakistan. This will serve your Company well in future
given the local and global challenges the world is Flood Relief Fund
facing.
Following the catastrophic floods that have
Investing in our Vision for Tomorrow submerged much of the country, the Company has
established a Relief Fund and is working on delivering
In line with the new Vision & Mission and strategy
Nutrition, Medicine and Shelter to the dispossessed.
announced by our CEO last year of “Creating food
that enriches the lives of people everywhere” we
continue to invest for tomorrow both locally and
internationally. Our new 30-acre production facility
based in FIEDMEC is progressing efficiently and on
Zahid Majeed
schedule despite the well know supply chain
Chairman
About the
The Company
Directors’ Report Key financial numbers of the Group for the fiscal year are summarized below:
Amounts in PKR Million

Group Core Business A1 Bags & Suppliers Inc.
Fellow Shareholders, transformation measures. During the year, the FY22 FY21 Change FY22 FY21 Change FY22 FY21 Change
Company reorganized the commercial functions to
The Directors of National Foods Limited (the Net sales 45,526 34,588 32% 27,141 23,417 16% 18,386 11,171 65%
drive focus, took strategic buying decisions, portfolio
‘Company’) are pleased to present the Annual Report rationalization effected and rebranded our core Gross profit 12,979 9,752 33% 9,267 7,354 29% 3,714 2,398 55%
along with the financial results which include both recipe range with superior advertising and marketing
stand-alone and consolidated audited financial promotions. The Company continues to invest in the Operating profit 3,717 2,942 26% 2,433 2,042 19% 1,289 900 43%
statements, for the year ended June 30, 2022. Faisalabad manufacturing facility and expects it to be Net profit after tax 2,424 1,759 38% 2,216 1,573 41% 748 554 35%
operational by December 2023. The Company has
Company’s Principal Activities temporarily stopped production of savory snacks and Earnings per share (Rupees) 10.4 7.5 - 9.5 6.7 - - - -
The Company manufactures, markets and sells food plans to revisit this once the Faisalabad project
Gross profit 28.5% 28.2% 0.3% 34.1% 31.4% 2.7% 20.2% 21.5% -1.3%
products under the brand name “National”. becomes operational. Export business remained
challenged during the year due to freight and shipping Operating profit 8.2% 8.5% -0.3% 9.0% 8.7% 0.2% 7.0% 8.1% -1.0%
Business Performance Overview constraints. Growth was mainly driven by currency
Profit after tax 5.3% 5.1% 0.2% 8.2% 6.7% 1.4% 4.1% 5.0% -0.9%
devaluation.
Operating and financial performance
* This includes amortization of Rs. 15 million (2021: RS. 13 million) on intangible recognized on consolidation of A1 Bags &
The Group A1 Bags & Supplies Inc. Suppliers Inc.
The group witnessed a strong top-line and The business achieved a top line growth of 65% - * Group PAT includes A1 at %60 and excludes intercompany dividend of 186M (140 :2021M)
bottom-line growth of 32% and 38% respectively for with strong volumetric growth coupled with the
the outgoing year. Despite serious macroeconomic devaluation impacts. Business expanded into further
challenges, the top line continued its momentum stores while increasing the footprint of the existing Sales and Marketing flag lies at the heart of the National Recipe Mixes
design, uniting the elements on the pack. Every motif
which was supplemented by cost and revenue store as well. This resulted in higher operational New Recipe Mixes Packaging on the pack distinguishes the diverse range that this
transformation measures enabling healthy gross expenses and underlying margin adjustment amidst Launch Campaign category has to offer, e.g., Rice range motif is shown
margins of 29% and 5% at PAT levels. inflationary economic environment. via the traditional rice bowl, while skewers and grills
Packaging Philosophy
depict the mouth-watering BBQ range. Different
Core business National Foods Limited has revamped the packaging types of star-shaped garnishes represent the star on
of its complete range of Recipe Mixes, to instill a Pakistan’s flag.
Local business, amidst rising inflationary pressures sense of nationality and to make the packs
and dollar appreciation, focused on margin aesthetically pleasing and consumer friendly. Furthermore, a seamless and smooth customer
sustainability with strong revenue and cost journey has been ensured through multiple ways;
The Company takes pride in its Pakistani roots and preparation is explained in both English and Urdu with
being a national icon. The revamped design of Recipe visual depiction of each step. A unique spice meter
Mixes range revolves around the concept of the indicates the level of hotness in Recipe Mixes. The
diverse and vibrant colors, which depict the rich MadeEasy QR code transports the consumer to the
culture, tradition, and the proud nation of Pakistan. In website for more creative dishes, while the Hotlink
order to make it convenient for customers, each establishes a direct connection between the
category i.e., Rice, Salan (Curry), BBQ, Fried, Haleem customers and the Company.
and Rozana are marked with a distinguishing color.
In order to maintain a consistent identity, the same
By using the Pakistani flag’s crescent and star in our patterns are used across all SKU’s which includes
packaging, we are cementing and strengthening our sachets, single and double packaging.
Pakistani identity. The crescent pattern of Pakistan’s
140 | Business Review Annual Report 2022 | 141

Launch Campaign Plain Spices & Ingredients: Pickle Extensive working was also done in close
coordination with our subsidiary, A1 Cash & Carry,
To create awareness of the new packaging of the Maintaining the foothold in a Price • Fully leveraging the Season and Consumer
to develop and rollout a new portfolio geared
Company Recipe Mixes, an extensive 360° Competitive Market: buying cycles through an integrated 360° plan
towards segments we currently were not
campaign was launched that encompassed across, TV, Digital, social media, e-com and
Red chili volumes in the category are mainly driven operating in.
different mediums including TV, Digital, Radio, Print & instore visibility drives.
by loose market followed by mid-tier/retail owned
Out of Home. Our food anthem ‘Aaj Rung Hai’ was In FY21 we Launched National Ka Pakistan Made
brands (ROBs). They offer low pricing for consumers • Extensive sampling of Crushed Pickle via CPs
launched on leading TV channels, intending to create Easy (NKPME), our first multi layered digital
and keep the retailers engaged with higher trade and cross category commodity bundling at key
clutter breaking media impact on top viewed News platform build on food, culture & experience using
margins, without focusing much on the product LMTs to build trial and penetration
and Entertainment channels via TV Roadblocks, Chefs from multiple ethnicities along with
quality.
Sponsorships, Branding and Morning Show • Cooking/Snacking oriented PR campaign with
bloggers across North America to create delicious
Integrations. The campaign also took the internet by chefs and food bloggers across FB groups, fusion meals with an eastern twist. This year we
At the beginning of the year, the Company’s volume
storm via Digital Takeovers on the top platforms, Instagram and Tiktok with a combined reach of made NKPME our most expansive digital
(red chili) was impacted due to increasingly higher
publishers and the most premium placements that 10 million to build consumption habits execution yet by extending it across borders and
price index vs. ROBs, resulting in consumer switching
are available in Pakistan. ethnicities, taking consumers on a journey to 4
towards mid-tier brands. Hence, a bold shift in the • General Trade Activation across 28 markets in
pricing strategy was made and the Company Red key cities, 101% interception vs the target of different regions - USA, Canada, UK and UAE with
More than 9 marketing touchpoints including 5 Master Chefs and multiple influencers in each
Chili prices were drastically reduced across the SKUs 44k interceptions. Consumer engagement via
YouTube, Spotify, Google, TikTok, Facebook and market.
to lower the price gap against ROBs. trials and activations.
Instagram were utilized to ensure optimal impact.
YouTube bumper ads that played before videos were Modern Trade Activation across key (store count) Customized plans leveraging our JBP with Google,
Ketchup
heavily marketed and the ad was shown to have the LMTs in KLI, generating sampling and consumer cost-effective sampling units that helped us
largest ad weightage on the front-page creating high • Launch of National Squeezy, to drive engagement for Crushed Pickle. Made Easy achieve trial at scale and participation in festivals
recall for the audience. Various social media posts differentiation and achieve image superiority, vouchers distributed as prizes, to promote E-Com across key inflection points were carried out by
were designed and sponsored on Facebook and National Squeezy, a premium format that channel. Successfully achieved 101% vs target of market to drive both the core portfolio and
Instagram. Moreover, Google Blast was active for enhances consumer lifestyle by offering 56k interceptions. strategic new product rollouts that started from
three consecutive days and full-page branding was convenience was launched in the market. The last year to drive & own subsegments within the
carried out in top publications across print media. All launch was supported through an integrated International larger categories we operate in.
the top radio channels were chiming to the tune of marketing plan; DVC breakthrough, in-store
Ramped up coverages across our focus markets
’Aaj Rung Hai’ around the clock. This assertive and support, on ground activations, leveraging social
and entered new markets. Restructured our Our People
vigorous marketing strategy yielded impressive media & e-commerce.
Route to Market by adding additional distributors Our people are our greatest asset. They are the
results across all platforms. • Successful execution of Consumer Promotions, to serve existing markets quicker and set the driving force behind every initiative and service
capitalized on the occasions (Eid-ul-Azha, building blocks through key appointments in core delivery. Keeping in mind the turbulent times and
Customized in-store branding also took place to Winter & Ramzan) by launching consumer markets to enter new retail streams and channels ever-changing business dynamics, that the world
increase visibility and generate holistic customer promotions attracting users and non-users of business going forward. Ecommerce Setup in has seen post pandemic, National Foods Limited
experience coupled with activations that were done throughout the year. The CPs were supported North America across Amazon, Walmart, Ebay has geared up for the challenges which lie ahead
across multiple stores to drive trial. through POSM, social media and leveraged on and our own storefronts. by finalizing the 10-year strategic plan for the
E-commerce. Company’s growth. To deploy this renewed
The campaign overall performed over and above the Key strategic rollouts on the Recipe Mixes direction with laser focus and agility, the
estimated KPIs on each platform and was a major • Successfully aired digitally ‘National Ketchup
portfolio in the UK were completed to drive Organization has gone through a major
success. It created a contemporary brand imagery Factory (June’22) and it was backed by a highly
penetration of the brand and facilitate trial by transformation in its organization design by
for National Foods Recipe Mixes and established it engaging digital and PR campaign.
lowering the out-of-pocket expense for the bifurcating the Company into two independent
as No.1 Recipe Mix Brand of Pakistan. consumer whilst we extended our core Sauces business units: Culinary and Condiments.
portfolio to the GCC region to cater to the general
market gap and ensure consistency in our To promote and strengthen the learning culture by
portfolio offerings between regions. adopting the new ways of learning in times of new

normal, National’s House of Lear Development has The Company joined hands with Ubuntu Care, result in reduced tree felling of hundreds of trees. Occupational Health and Safety Management
capitalized on its established in-house learning experts in daycare services centered on the Finnish This is a big milestone towards Responsible System but also intends to go at greater lengths to
management system. In order to inculcate a Model of Early Childhood Development (ECD), in late Business Practices. To further augment the implement more robust and reliable Process Safety
learning culture at the Company, we will focus on 2019, to remodel and manage the in-house the campaign, National Foods Limited has collaborated Management standards.
developing the leadership team and everyone Company daycare. Ubuntu and the Company worked with World Wildlife Fund (WWF) in Pakistan to
across the Company and equip them with together to design a space that is not only protect the environment by encouraging tree Environmental protection
competence to equip them for times ahead. This developmentally appropriate for children, but also plantation and reforestation. Through this
National Foods Limited consider it as its sacred duty
will be supplemented by the succession planning keeps safety in high consideration. Unfortunately, the resourceful collaboration for the Company’s
to cater for growing needs associated with
framework where the organization will focus on Company daycare remained non-operational for 18 #LetsPlantOurFuture campaign, thousands of
sustainability and environmental protection. Every
building and strengthening the succession months due to the emergence of COVID-19 global mangrove saplings have been planted, which are
now and then the Company comes up with ways
benches in the Organization. pandemic, however, it resumed its operations in the critical to the conservation of marine life and those
and means to augment the government efforts to
new space with a new management in September dependent on it along Pakistan’s coastal areas.
build a better environment for future generations.
Also, National Foods Limited has joined the global 2021 along with new SOPs related to the spread of
This year, Rs. 240 million Effluent Treatment Plant
network of National Accelerators on ‘Closing the COVID. The space encourages learning through play Business Ethics (ETP) based on Membrane Bioreactor (MBR)
Skills Gap’ through Project Xcelerate in and has ample learning materials that encourage
From the inception of the Company, it has been and advance technology has been made fully
collaboration with TEVTA through which a batch multiple areas of intelligence, such as reading,
continues to be a policy that the Company and all its operational at Port Qasim plant making it completely
of qualified Diploma holders have joined the cognition, music, art, and has equipment for
employees maintain the highest ethical standards in compliant to the provisions of Pakistan EPA/Sindh
Company as apprentices. developing fine and gross motor skills. The daycare
the conduct of the Company’s business. Our Code EPA.
provides an opportunity to those children born during
of Conduct constitutes a set of standards and rules
Corporate Sustainability the pandemic to learn and practice social skills with
which form an integral part of our corporate culture Similarly, Strict Preventive Maintenance schedule is
their teachers, care givers, and peers while balancing
As part of commitment to community, the Company and is a statement of who we are and how we work. in place to ensure exhaust emission values meet the
the need for independence.
endeavors to increase focus on education. We They highlight business principles, the Company's legal requirements. Environmental monitoring by
believe that preparing students for the world is responsibilities towards its employees, and independent labs is carried out on regular intervals to
National Foods Limited has been supporting Behbud
pertinent in improving their chances of making a employee responsibilities towards your Company. ensure compliance of all critical parameters i.e.,
(which means “Advancement” in Urdu) a non-profit
mark for themselves. With this in mind, as part of our Along with good corporate governance, ethical ambient air, vehicle/exhaust emissions, noise, lux and
organization in Karachi for a number of years.
golden jubilee celebrations, the Company awarded behavior is a fundamental part of everything that drinking water. A proper waste management system
Behbud’s main focus is on community development
20 scholarships to the employees’ school-going the Company does. is in place as hazardous and non-hazardous waste is
by providing quality education, subsidized
children. The scholarship covers tuition fees and the managed as per legal requirement though EPA
healthcare programs, and specialized vocational
cost of books for a year. Half of the children
training and income generation programs in
Health & Safety approved vendors.
receiving the scholarship are girls. The policy is
marginalized communities. Behbud is entirely HSE is deeply embedded in our business culture as
applicable for one school-going child of the selected
managed by female volunteer staff. In March 2022, the group continues to evolve in this important area.
Principal risks and uncertainties
individual via e-balloting. Eligibility covers one child
National Foods partly sponsored the Behbud Spring Every individual of the Company continues to The local business and political landscape have
per employee that is currently enrolled in a school
Fiesta, a popular bazaar held annually where artisans contribute exceptionally well to foster a positive been variable over the course of the year, especially
(from class 1 to class 10). This is just one of the
and vendors promote and sell their wares. Proceeds HSE culture in the organization. Top management’s with the change in the government during the year.
initiatives to create a literate and empowered
from the event help finance their community commitment, employee friendly HR policies, The political and economic policy uncertainty has
Pakistan.
development programs. increased safety awareness, timely reporting of shaken the investor confidence. Interest rates have
hazards and incidents and non-punitive approach followed the higher inflation rates and increased the
In our effort to increase literacy in the country,
With ever-increasing focus on Global Warming and towards those who come forward with information cost of doing business. The Company has fared well
National Foods Limited partnered with CLF to
Climate Change, we all need to do our part in making on hazards/incidents have been the cornerstones as a result and has strategized to ensure
spread the message of education and inculcate
this planet greener for generations to come. As part of the overall success in this domain. Excellence in competitive sustainable growth in the environment.
reading habits amongst the youth of Pakistan. It was
of the Company’s Eco-Friendly Campaign, the Health and Safety is the Company’s ultimate target
a three-day event held to celebrate the 73rd
initiative involves reducing up to 25% paper usage in and every small stride in this direction will bring us Based in the convenience food segment, the
anniversary of Pakistan.
packaging of Recipe Mixes. This initiative will in turn closer to our objectives. The Company considers it Company gross margins are dependent on key
rudimentary not only to implement conventional local and imported inputs.

There is uncertainty over prices due to uncertain Contribution to the National · International Financial Reporting standards Board Audit Committee (‘BAC’)
climatic changes. Low local output results in have been followed in preparation of financial
Exchequer The Board Audit Committee assists the Board in
additional imports hurting raw material pricing amid statements and any departure there from has
During the year, the contribution to the National been adequately disclosed. fulfilling its oversight responsibilities, primarily in
restricted price pass-on opportunities in a highly
Exchequer has further increased and the Company reviewing and reporting financial and non-financial
competitive environment. · The system of internal control is sound in design
paid over Rs 6,369 million (2021: Rs 5,281 million) information to shareholders, systems of internal
and has been effectively implemented and
to the government and its various agencies on control and risk management and the audit
Devaluation of exchange rates during the fiscal monitored. The Board has constituted a
account of different government levies, including process. It has the autonomy to call for information
year can impact the Company’s gross margins in the Board Audit Committee consisting of three
custom duty, sales tax and income tax. Moreover, from management and to consult directly with the
local business due to impact on prices of key inputs. members, including chairman of the committee.
foreign exchange of Rs 2,290 million (2021: Rs external auditors or advisors as considered
However, with a fine balance of exports and imports, The chairman of Board Audit Committee is an
2,068 million) was also generated through export appropriate. The Chief Financial Officer regularly
the Company gets a natural hedging of the foreign independent director, and the committee attends the Board Audit Committee meetings by
currency fluctuation. of products and dividend from subsidiary which regularly meets as per requirements of the Code.
further reflects our participation in the national invitation to present the accounts. After each
economy. · There has been no material departure from the meeting, the Chairman of the Committee reports
Business continuity and disaster recovery plans best practices of corporate governance, as to the Board. The Committee met five times during
(DRPs) are in place to ensure that the Company’s detailed in the listing regulations. 2021-2022.
production and sales operations are not disrupted.
Dividend:
· There are no significant doubts upon the
The DRPs cover all business aspects with special The Board of Directors has recommended final cash
Company’s ability to continue as a going Board Audit Committee
focus on information technology and the ERP dividend of Rs 5/- per share held on the date of
concern.
environment which spans multiple functions. determination of entitlement to receive dividend. Mr. Ehsan Ali Malik Chairman
Detailed responsibilities of DRP lead, steering Total unconsolidated profit distributed by way of · The outstanding duties, statutory charges and
Mrs. Saadia Naveed Member
committee and key team members are defined dividend amounts to 59% (2021 : 92%). taxes, if any, have been duly disclosed in the
financial statements. Mrs. Noreen Hasan Member
to ensure rapid response in the event of a
business disruption. Corporate & Financial Reporting · A statement regarding key financial data for the
Framework: last six years is annexed to this report. Human Resource and Remuneration
The Company’s financing incorporates an
Committee (‘HR&RC’)
The managerial objective of the Company is good
appropriate mix of debt and equity to ensure
corporate governance and compliance with best Board of Directors and its The committee meets to review and recommend all
optimum financial leverage and reduced cost.
practices. As required under Listed Companies Committees: elements of the compensation, organization and
The Company is however susceptible to adverse employee development policies relating to the
(Code of Corporate Governance) Regulations, 2019 The Board comprises of seven directors including
changes in interest rates due to increased senior executives’ remuneration and to approve all
(the ‘Code’), the Company has adopted the Code in two independent directors, one executive and four
borrowings exposure. The Company mitigates this matters relating to the remunerations of the
letter and spirit as follows. non-executive directors.
through a combinations of financing options, such executive director and CFO, the company
as running finance, money market loans and secretary, and head of internal audit.
· The financial statements present fairly the Category Names
long-term loans, through a variety of institutions. state of affairs of the Company, the results of
The Company is also availing discounted LTFF and HR&RC
its operations, cash flows and changes in equity. Independent Directors Mr. Ali H Shirazi
ERF against export performance. Mr. Ehsan Ali Malik Mr. Ali H Shirazi Chairman
· Proper books of account of the Company have
been maintained. Mr. Ehsan Ali Malik Member
The Company has an in-house legal and reporting Executive Director Mr. Abrar Hasan (CEO)
team, to ensure simultaneous compliance with Mrs. Noreen Hasan Member
· Appropriate accounting policies as stated in the Female Directors Mrs. Saadia Naveed
corporate legal framework and the financial notes to the financial statements have been Mrs. Noreen Hasan
reporting framework applicable to the Company. consistently applied in preparation of financial
External legal and tax counsels are on board and statements and accounting estimates are Non-Executive Directors Mr. Zahid Majeed
consulted wherever expert advice is required. based on reasonable and prudent judgment. (Chairman of the Board)
Mr. Adam Fahy Majeed

Meetings of the Board and its Committees in 2021-2022 Pattern of Shareholding the Financial Statements for the year ended June
30, 2022.
During the year, five meetings of Board of Directors, five meetings of the BAC and four meetings of HR&RC The pattern of shareholding of the Company and
were held. All the meetings were held at our Corporate Office situated at 12/CL-6, Claremont Road, Civil Lines, additional information as at June 30, 2022 is Statement of Compliance with Code
Karachi, Pakistan. The attendance of the directors is as follows: annexed to the report. of Corporate Governance:
Mrs. Mariam Malik (spouse of Mr. Ehsan Ali Malik, The Company has fully complied with requirements
Committee Attendance
Director) acquired shares 33,800 of the Company of the Listed Compliance (Code of Corporate
Sr # Director Designation Status BAC HR&RC BOD BAC HR&RC on April 5, 2022, at the rate of Rs. 157.26 per share. Governance) Regulations, 2019.The Statement of
Other Directors, CEO, CFO, Company Secretary and Compliance is provided under the relevant section
1 Mr. Zahid Majeed Chairman/ Appointed on their spouses and minor children did not carry out of the report.
Non-Executive April 20, 2022 - - 5/5 3/5 3/4
any transaction in the shares of the Company
2 Mr. Abrar Hasan Chief Executive Re-elected on during the year. External Auditors
(Executive) Officer October 14, - - 5/5 - 4/4 The present auditors M/S. KPMG Taseer Hadi & Co
2021 Remuneration policy of (Chartered Accountants), retired and being eligible,
Non-Executive and Independent have offered themselves for re-appointments. The
3 Mr. Ehsan Ali Malik Independent Re-elected on Directors Board of Directors endorses the recommendation
Director October 14, P P 5/5 5/5 3/4
2021 Through the Articles of the Company, the Board of of the Board Audit Committee for their
Directors is authorized to fix remuneration of re-appointment as auditors of the Company for the
4 Mr. Ali H. Shirazi Independent Elected on Non-Executive and Independent Directors from year ending June 30, 2023.
Director October 14, - P 4/5 - 3/4
time to time. In this regard, the Board of Directors
2021
has developed a Remuneration policy for Internal Auditors Function
5 Mr. Adam Fahy Non-Executive Appointed on Non-executive and Independent Directors of the
Company’s internal Audit function is being looked
Majeed April 20, 2022 - - 1/5 - - Company. The details of Directors’ Remuneration
after by the Head of Internal Audit, who is assisted
are disclosed in Note 36 of the Financial
Re-elected on by the internal auditor M/s EY Ford Rhodes. The
Statements for the year ended June 30,2022.
6 Mrs. Saadia Naveed Non-Executive October 14, P - 4/5 5/5 - Head of Internal Audit reports directly to the
2021 Chairman of the Board Audit Committee.
Performance Evaluation of Board of
Directors and its Committees
Re-elected on Provident & Retirement Funds
7 Mrs. Noreen Hasan Non-Executive October 14, P P 5/5 5/5 4/4 Complying with the Listed Companies (Code of
2021 The Company maintains a contributory Provident
Corporate Governance) Regulations, 2019 the
Fund for all employees and a defined Benefit
Passed away Board has adopted comprehensive mechanism for
Pension & Pensioners Medical Plan for the Chief
8 Mr. Abdul Majeed Ex-Chairman on February 21, - - 2/5 - - conducting evaluation of its performance. The
Executive and Spouse of late Founding Directors of
2022 Company has introduced a questionnaire on the
the Company. Details of the assets and
Board’s composition, leadership, effectiveness,
Retired as a contributions of the funds are provided in Note 8 of
planning, and overall, the Company’s strategy,
9 Mr. Towfiq H. Chinoy Non-Executive Director on - - 1/5 - - the Financial Statements for the year ended June
performance and monitoring. The Board evaluates
October 14, 30, 2022.
2021 all factors based on inputs received from every
director annually.
Forward Looking Statement and
The election of directors was held at the AGM of 2021 and Mr. Towfiq H. Chinoy did not offer himself for Related Party Transactions Future Outlook
re-election and got retired. Mr. Abdul Majeed – Chairman of the Board passed away on February 21, 2022, and
The related party transactions entered into by the The management acknowledges the uncertainty
the casual vacancy occurring on the board was filled by Mr. Adam Fahy Majeed who was appointed Director on
Company during the year are disclosed in Note 37 of emanating from the current geo-political situation
April 20, 2022, for the remainder period. The terms of the present directors will expire on October 13, 2024.

both locally and internationally. Further, currency Acknowledgement
depreciation in recent time, inflationary pressures,
supply chain management and market situation can The Board would like to convey its earnest gratitude
affect the cost and capability to serve the market to all the people involved with the Company for
effectively. However, the management of the enabling it to flourish and deliver a constant
Company remains committed to drive business performance over the last five years. Our people are
fundamentals and improve/maintain its market steadfast to the welfare of the Company and have
leadership position in all major categories through showed their potential by overcoming the numerous
contingency planning. National Foods has responded difficulties posed by the operating environment. We
well in this crisis, and we are geared to deliver our treasure their dedication and feel highly obliged.
social and economic responsibilities considering our
Founder’s Philosophy and “Our Values.” On behalf of Board of Directors
Chief Executive Officer Director

We Enrich Our Methods
for Stronger Margins
Financial Review
DuPont Analysis Financial Ratios
2022 2021 Unit 2022 2021 2020 2019 2018 2017

Profitability Ratios
Gross Profit Ratio % 28.5 28.2 29.1 28.8 31.0 32.3
Operating Profit to Sale % 9.0 8.5 9.2 8.3 6.3 8.5
Net Profit before Tax to Sales % 7.9 7.6 8.0 7.1 5.4 7.8
Tax Burden Interest Burden Tax Burden Interest Burden Net Profit after Tax to Sales % 6.0 5.7 5.7 5.7 4.8 5.8
75% 89% 75% 89% EBITDA Margin to Sales % 11.5 11.0 12.1 10.5 8.3 10.1
Operating Leverage Ratio % 118.1 48.6 193.1 351.3 18.5 75.7
Return on Equity % 32.5 29.6 29.8 30.3 27.8 32.8
Return on Capital Employed % 38.3 33.4 36.3 37.3 32.2 42.4
Return on Assets % 11.6 11.3 11.6 11.3 10.1 12.0
Liquidity Ratios
Current Ratio Times 1.1 1.2 1.2 1.1 0.9 1.0
Quick / Acid Test Ratio Times 0.4 0.6 0.5 0.3 0.3 0.4
Cash to Current Liabilities Times (0.1) 0.1 0.2 0.03 (0.2) (0.1)
Operating Margin Asset Turnover Operating Margin Asset Turnover Cash Flow from Operations to Sales % 3.2 7.3 10.4 7.9 6.1 8.5
9% 1.94 9% 1.95 Working Capital Turnover Times 32.44 21.10 30.8 (131.0) (78.5) 64.9
Efficiency Ratios
No. of Days in Inventory Days 89.3 85.3 90.4 91.1 87.0 107.4
No. of Days in Receivables Days 14.8 12.4 15.7 17.0 21.4 24.9
No. of Days in Payables* Days 23.4 22.7 24.5 25.6 20.8 14.0
Operating Cycle* Days 80.7 75.0 81.7 82.5 87.6 118.3
Asset Turnover Times 1.9 2.0 2.0 2.0 2.1 2.1
Inverntory Turnover Times 4.1 4.3 4.0 4.0 4.2 3.4
Receivables Turnover Times 24.6 29.4 23.2 21.5 17.1 14.6
Leverage Ratio Leverage Ratio Payables Turnover* Times 15.6 16.1 14.9 14.3 17.6 26.1
2.81 2.65 Revenue / Employee Rs. 68,526 59,126 54,422 44,269 41,430 34,136
Net Income / Employee Rs. 3,163 2,506 2,286 1,820 1,480 1,446
Investment / Market Ratios

Earnings Per Share Rs. 10.4 7.5 6.3 5.6 4.3 4.1
Price Earning Ratio Times 13.9 30.4 39.6 32.2 72.5 66.3
Dividend Yield Ratio % 3.5 2.2 2.0 2.2 1.2 1.6
Dividend Payout Ratio (recalc) % 42.9 59.0 70.6 68.0 85.1 101.8
Dividend Cover Ratio (recalc) Times 2.3 1.7 1.4 1.5 1.2 1.0
Return on Equity Return on Equity Cash Dividend Per Share Rs. 5.0 5.0 5.0 4.0 3.8 4.3
32% 30% Cash Dividend % 100.0 100.0 100.0 80.0 75.0 85.0
Stock Dividend Per Share Rs. - 1.3 1.3 1.2 1.2 -
Stock Dividend % - 25.0 25.0 20.0 20.0 -
Market Value Per Share at the end of the year Rs. 144.8 229.0 250.5 179.0 314.0 271.0
Low during the year Rs. 141.9 188.6 133.0 147.5 295.0 260.0
High during the year Rs. 230.6 304.0 267.5 310.0 352.0 413.7
"Breakup Value Per Share without
Surplus on Revaluation of Fixed Assets" Rs. 40.6 31.2 26.0 21.6 17.2 14.5
Market Capitalisation (in millions) Rs. 33,751 53,388 58,384 41,730 73,198 63,174
Capital Structure Ratios

Financial Leverage Ratio % 85.8 77.9 49.9 63.5 69.4 57.6
Weighted Average Cost of Debt % 6.7 7.2 10.9 9.4 8.2 6.4
Debt to Equity Ratio % 5.4 12.1 19.9 18.5 5.0 11.1
Interest Coverage Ratio Times 8.8 9.4 7.7 7.1 7.0 13.6
No. of Ordinary Shares (in millions) EA 233 233 233 233 233 233
* Contract liability is reclassed in Trade debts from Current liablities

Financial Statements
at a Glance Profit or Loss (Rupees in Million)
50000
45,526
45000
Assets (Rupees in Million) 40000
35000
30000 30000
27,095
1,752
2,996
25000
25000
(1,001)
3,293 158 20000
19,895
20000 15000
(32,546)
10000
15000 646
5000 2,717
(9,250) (761) (898)
10000 0
Finance Cost
Net Cost of Operating Other Profit after
& Other Taxation
Turnover Sales Expenses Income Taxation
5000 Charges
0
Property Other Other
Stock Trade
FY 21 Plant & Non-Current
in Trade Debts
Current FY 22
Equipment Assets Assets
Cash Flow (Rupees in Million)
Equity and Liabilities (Rupees in Million)

2000
1,446
852
30000 1000
265 27,095
2,022
2,391
25000 323
2,067 133 0
19,895 (800) (31)
20000
(1,000)
15000
(2,000)
(1,890)
10000
(3,000)
(3,358)
5000
(4,000)
Current
0 Cash & Cash
Operating Investing Financing
Translation Cash & Cash
Short Term
Paid up Capital Non
Non-Current
Trade and
Borrowing &
Other Equivalent
Activities Activities Activities
Difference on Equivalent
FY 21 and Revenue Controlling
Liabilities
Other
Running
Current FY 22 2021 Cash & Cash 2022
Reserves Interest Payables Liabilities Equivalents
Finance

Financial Highlights Earnings Per Share
2017 4.1
(in Rupees)
2018 4.3
2019 5.6
Our results compared to same period Last year at a Glance 2020 6.3
FY-22 2021 7.5

2021-22 Turnover up by 26 % 2022 10.4
2021-22 Gross profit up by 33 % 0 2 4 6 8 10 12
2021-22 Profit after Taxation up by 38 %
2021-22 Earning per Share PKR 10.4 (Jun 30 2021 PKR 7.54) Cash Dividend Per Share (in Rupees)
Turnover by Business Operating Profit by Business 2017 2.8

2018 4.3
2019 4.3
2020 5.0
Core Segment 60% Core Segment 68%
2021 5.0
Retail (Cash & Carry) 40% Retail (Cash & Carry) 32%
2022 5.0
0 1 2 3 4 5 6
Market Value Per Share at the end of the year (in Rupees)
2017 271.0
Turnover by Geographical Locations (Rupees in Million) 2018 318.9
Local Canada/USA Middle East Asia Europe / UK Others 2019 184.2

40,000 2020 250.5
36,644
35,000 32,195 2021 229.0
30,000 27,573 2022 144.8
25,000 23,915 0 50 100 150 200 250 300 350

21,785
20,640
19,552
20,000
Breakup Value Per Share (in Rupees)
15,000 12,789
10,725
2017 14.5
10,000 8,431
5,980 2,675
1,085 1,163 823 874 2018 17.2
5,000 485 432 167 112
819 599
9 14 4 3 163 139
5 9 2019 21.6
0
2022 2021 2020 2019 2018 2017 2020 26
2021 31.2
Gross Profit (Rupees in Million)
2022 40.6
Core Business Retail
0 5 10 15 20 25 30 35 40 45
10000 9,490
9000
Price Earning Ratio (in Rupees)
8000 7,354
7000 6,354 2017 66.3

5,825
6000 5,541
72.5
5,145 2018
5000
3,714 2019 32.2
4000
2020 39.6
3000 2,117
2,013
2000 1,443 2021 30.4
880
1000 288 2022 13.9
0
0 10 20 30 40 50 60 70 80
2022 2021 2020 2019 2018 2017

Financial Highlights Return on Assets %
2017 12.0
2018 10.1
2019 11.3
2020 11.6
2021 11.3
A. Profitability Ratios
2022 11.6
9.0 9.5 10.0 10.5 11.0 11.5 12.0 12.5
Gross Profit Ratio %
2017 32.3 Return on Equity %

2018 31.0
2017 32.8
2019 28.8
2018 27.8
2020 29.1 30.3
2019
2021 28.2
2020 29.8
2022 28.5
2021 29.6
26 27 28 29 30 31 32 33
2022 32.5
24 26 28 30 32 34
Operating Profit to Sales %
Return on Capital Employed %
2017 8.5
2018 6.3 2017 42.4
2019 8.3 2018 32.2
2020 9.2 2019 37.3
2021 8.5 2020 36.3
2022 9.0 2021 33.4

0 2 4 6 8 10 2022 38.3
0 10 20 30 40 50
Net Profit Before Tax to Sales %

Revenue / Employee (Rs. in ‘000)
2017 7.8
2017 34,136
2018 5.4
2018 41,430
2019 7.1
2019 44,269
2020 8.0
2020 54,422
2021 7.6
2021 59,126
2022 7.9
2022 68,526
0 2 4 6 8 10
0 20000 40000 60000 80000
Net Profit After Tax to Sales % Net Income / Employee in Thousand

2017 5.8 2017 1,446
2018 4.8 2018 1,480
2019 5.7 2019 1,820
2020 5.7 2020 2,286
2021 5.0 2021 2,506
2022 6.0 2022 3,163
0 1 2 3 4 5 6 7 8 0 1000 2000 3000 4000

Financial Highlights D. Efficiency Ratios
Inventory Days (No. of Days)
2017 107
2018 87
B. Liquidity Ratios
2019 91
Current Ratio
2020 90
2017 1.0
2021 85
2018 0.9
2022 89
2019 1.1
0 20 40 60 80 100 120
2020 1.2
Receivables Days (No. of /days)

2021 1.2
2017 25
2022 1.1
2018 21
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4
2019 17
C. Gearing Ratios 2020 16
Debt to Equity Ratio% 2021 12.
2017 11.1
2022 15
2018 5.0
0 3 6 9 12 15 18 21 24 27
2019 18.5
Payables Days (No. of /days)
2020 19.9 2017 14
2021 12.1 2018 21
2022 5.4 2019 26
0 3 6 9 12 15 18 21
2020 25
2021 28
2022 23
0 5 10 15 20 25 30

Horizontal Analysis Vertical Analysis
2022 2021 2020 2019 2018 2017 2022 2021 2020 2019 2018 2017
Percent (%) Percent (%)
INCOME STATEMENT INCOME STATEMENT
Sales - Net 31.6% 20.5% 18.4% 12.3% 28.7% 23.7% Sales - Net 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Sales 31.0% 22.1% 17.8% 16.0% 30.8% 25.4% Cost of Sales 71.5% 71.8% 70.9% 71.2% 69.0% 67.8%
Gross Profit 33.1% 16.6% 19.8% 4.2% 23.4% 20.1% Gross Profit 28.5% 28.2% 29.1% 28.8% 31.0% 32.2%
Distribution costs 18.1% 16.8% 16.2% (5.3%) 20.2% 28.4% Distribution cost 13.8% 15.4% 15.9% 16.2% 19.2% 20.5%
Impairment loss on trade debts 45.5% 0.2% (2.8%) (72.7%) 100.0% 0.0% Impairment loss on trade debts 0.1% 0.1% 0.1% 0.1% 0.5% 0.0%
Administrative expenses 102.4% 16.3% 8.8% 24.9% 75.5% (0.3%) Administrative Expense 6.4% 4.2% 4.3% 4.7% 4.2% 3.1%
Other expense 107.5% 3.1% 5.8% (43.0%) 110.6% 10.1% Other expense 0.7% 0.4% 0.5% 0.5% 1.1% 0.7%
Other income 387.2% (47.1%) 0.9% 364.4% (46.0%) 202.8% Other Income 1.4% 0.4% 0.9% 1.0% 0.2% 0.6%
Financial charges 47.3% (8.1%) 20.9% 44.8% 86.7% 17.6% Financial Charges 1.0% 0.9% 1.2% 1.2% 0.9% 0.6%
Profit before Taxation 37.4% 14.0% 34.0% 46.8% (11.0%) 16.2% Profit before Taxation 7.9% 7.6% 8.0% 7.1% 5.4% 7.9%
Taxation - net 36.8% (0.2%) 86.6% 140.7% (57.7%) 2.2% Taxation - Net 2.0% 1.9% 2.3% 1.5% 0.7% 2.1%
Profit after taxation 37.6% 19.6% 20.4% 33.4% 5.5% 22.1% Profit after taxation 6.0% 5.7% 5.7% 5.7% 4.8% 5.8%
BALANCE SHEET BALANCE SHEET
Issued, subscribed and paid up capital 25.0% 25.0% 20.0% 20.0% 0.0% 0.0% Issued, subscribed and paid up capital 9.8% 9.9% 5.2% 5.5% 11.7% 12.7%
Unappropriated Profit 22.1% 17.7% 21.3% 23.5% 20.4% 32.8% Unappropriated Profit 58.5% 60.8% 33.8% 35.2% 73.1% 65.8%
Non controlling interest 20.9% 20.9% 93.5% 38.4% 9.5% 100.0% Non Controling Interest 6.5% 6.8% 3.7% 2.4% 4.4% 4.4%
Exchange revaluation reserve 20849.4% (105.4%) (136.0%) 154.9% 671.3% 155.6% Exchange revaluation reserve 4.9% 0.0% -0.4% 1.3% 1.3% 0.2%
Total Equity 30.2% 20.0% 20.5% 25.6% 18.1% 33.3% Total Equity 79.6% 77.6% 42.3% 44.3% 90.5% 83.1%
Long Term Obligations 20.4% 22.4% 15.5% 11.4% 9.5% 16.9%
Long Term Obligations 15.3% (5.2%) 71.1% 209.7% (39.3%) 629.6% Total Long-term Liabilities and
Total Long-term Liabilities and shareholder equities 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
shareholder equities 26.9% 13.2% 30.9% 43.1% 8.4% 54.7%
Fixed Assets, CWIP & Intangibles 91.3% 78.9% 81.8% 92.4% 117.4% 92.8%
Fixed Assets, CWIP & Intangibles 46.9% 9.1% 15.9% 12.6% 37.0% 84.0% Other Non current assets 0.9% 1.3% 0.9% 0.6% 0.9% 0.8%
Other Non current assets -13.6% 61.7% 90.1% (1.4%) 21.0% 10.5% Current Assets 135.5% 131.9% 100.4% 116.9% 128.9% 137.0%
Current Assets 30.3% 48.7% 12.5% 29.7% 1.9% 20.2% Total Assets 227.7% 212.2% 183.2% 209.9% 247.2% 230.9%
Total Assets 36.2% 31.1% 14.2% 21.5% 16.1% 39.6% Current Liabilites & Provisions 127.7% 112.2% 83.2% -109.9% 147.2% 130.9%
Current Liabilites & Provisions 44.5% 52.6% (0.9%) 6.9% 22.0% 30.0% Net Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Net Assets 26.9% 13.2% 30.9% 43.1% 8.4% 54.7%
Financial Position Analysis - Equity & Liabilities Financial Position Analysis - Assets
Shareholders' Equity Current Liabilites & Provisions Non Current Liabilities Fixed Assets, Intangibles & CWIP Current Assets Other Non current assets
2017 3,391 5,334 690 2017 3,788 5,593 34
2018 4,004 6,509 419 2018 5,191 5,699 41
2019 5,030 6,956 1,297 2019 5,848 7,395 41
2020 6,064 6,892 2,220 2020 6,780 8,318 78
2021 7,273 10,518 2,104 2021 7,398 12,372 126
2022 9,473 15,166 2,456 2022 10,867 16,119 108
0 4000 8000 12000 16000 20000 24000 28000 0 4000 8000 12000 16000 20000 24000 28000

Summary of Cash Flow Statement Six Year Cash Flow Using Direct Method
(Rupees in Millions) 2022 2021 2020 2019 2018 2017 Source 2022 2021 2020 2019 2018 2017
(Rupees in thousands)
Cash flows from operating activities 1,446 2,526 2,992 1,923 1,311 1,425
Cash flows used in investing activities (3,358) (1,860) (919) (1,107) (1,676) (1,556) Cash received from customers 43,725,791 34,968,163 28,392,384 24,293,352 21,685,050 16,382,637
Cash flows used in financing activities (800) (845) (559) (110) (1) 167 Cash paid for goods & services (41,143,051) (31,505,586) (24,729,935) (21,946,283) (19,808,411) (14,463,131)
Net (decrease) / increase in cash and cash equivalents (2,711) (178) 1,514 706 (367) 37
Cash generated from operations 2,582,740 3,462,577 3,662,449 2,347,069 1,876,639 1,919,506
Cash and cash equivalents at the beginning of the year 852 1,196 (225) (978) (624) (662)
Currency translation difference on cash and cash equivalents (31) (166) (93) 46 12 1
Financial cost paid CF (392,876) (320,124) (356,062) (269,647) (181,164) (102,522)
Cash and cash equivalents at the end of the year (1,890) 852 1,196 (225) (978) (624) Net increase in long term deposits CF (5,677) (1,144) (6,767) 862 (6,716) (3,209)
Deferred rent CF - - (34,980) 2,455 17,596 1,898
Retirement benefit obligation CF (15,621) (154,587) (34,912) (42,366) (6,023) (17,881)
Operating activities Income tax refund / (paid) CF (722,146) (460,272) (238,190) (115,528) (389,804) (372,357)
The Company’s operating cash flow has increased at a CAGR of 0.24% over the past 6 years due to improved business Net cash flow from operating activities 1,446,420 2,526,450 2,991,538 1,922,845 1,310,528 1,425,435
performance.
Purchase of property, plant & equipment CF (3,113,174) (873,205) (900,450) (952,272) (1,657,468) (1,299,100)
Investing activities Purchase of intangible assets CF (32,311) (51,842) (8,240) (42,370) (42,031) (96,948)
Sale proceeds from disposal of property,
Cash used in investing activities has increased at a CAGR of 14% over the past 6 years and mainly comprises investment
plant and equipment CF 111,224 65,516 20,146 95,021 23,176 22,402
in capital expenditure including Faislabad project, Nooriabad Solar Power and building extension at manufacturing sites
Purchase of equity investment CF - - (30,000) - - -
of the Company.
Purchase of debt investment CF (323,596) (1,000,000) - - - -
Financing activities Deferred consideration paid CF - - - (207,017) - -
Acquisition of subsidiary CF - - - - - (182,429)
Financing activities mainly comprise long-term loans obtained for Investment in A-1 Bags & Supplies Inc. The Company
has financed its expansion needs by obtaining long-term loans which were partially offset by dividend payments. Net cash flow from investing activities (3,357,859) (1,859,531) (918,544) (1,106,638) (1,676,323) (1,556,075)
Proceeds from short term borrowings CF 1,107,483 169,733 - - 288,000 1,262,000

Proceeds from long term finance CF (576,323) (6,425) 582,348 504,387 325,290 289,613
Repayment of short term borrowings CF - - (459,690) (50,000) - (1,100,000)
Decrease in long term financing - net - - - (177,354) (55,416) -
Cash flows used in investing activities Cash flows used in finance activities Cash flows from operating activities
Deferred consideration paid - - - - (126,531) -
Repayment of lease obligations CF (294,494) (148,149) (150,693) - - -
4000
2992 Dividend paid CF (1,036,422) (860,323) (530,852) (386,925) (432,477) (284,158)
3000 2526
1923
2000 1446 1311 1425 Net cash flow from financing activities (799,755) (845,164) (558,887) (109,892) (1,134) 167,455
1000 167
0 Net cash flows (2,711,193) (178,245) 1,514,107 706,315 (366,929) 36,815
(110) (1)
(1000) (559)
(800) (845) (919) (1107)
(2000) (1676) (1556)
(1860)
(3000)
(4000) (3358)
2022 2021 2020 2019 2018 2017

Statement of Value Added
and its Distribution
2022 2021
2022
(Rupees in thousands) % (Rupees in thousands) %
Value Addition
68% Cost of sales

Revenue 45,525,608 34,588,433
Employees Remuneration
11%
Other Income Dividend to shareholders
646,054 132,608
3% Distribution expense
46,171,663 34,721,041
Finance cost
10%
Profit retained for Investment
and future growth
1% Administration and other
operating expense
Cost of Sales 30,972,347 67% 23,412,923 67% 2%
3% Income tax
2%
Distributon Expense 4,889,756 11% 3,554,651 10%
Administration and Other Operating Expense 1,301,051 3% 966,219 3%
Employees Renumeration 4,929,698 11% 3,841,495 11% 2021
Finance Cost 463,810 1% 314,768 1%

68% Cost of sales
Income Tax Employees Remuneration

897,925 2% 656,313 2% 11%
Dividend to shareholders
Dividend to shareholders 1,165,579 3% 1,165,577 3% 3%
Distribution expense
Profit retained for Investment & Future 1,551,498 3% 809,097 2% 10% Finance cost
Profit retained for Investment

Growth and future growth
46,171,663 100% 34,721,043 100% 1%
Administration and other
2% operating expense
3%
Income tax
2%

Pattern of Shareholding
As at 30 June 2022
# Of Shareholders Shareholdings'Slab Total Shares Held

Categories of Shareholders Shareholders Shares Held Percentage
881 1 to 100 39,456
Directors and their spouse(s) and minor children 1112 101 to 500 309,461
637 501 to 1000 490,073
ABRAR HASAN 1 23,003,081 9.87 862 1001 to 5000 1,927,067
ZAHID MAJEED 1 9,322,856 4.00 201 5001 to 10000 1,434,913
69 10001 to 15000 853,356
ALI H.SHIRAZI 1 1,000 0.00 45 15001 to 20000 801,037
NOREEN HASAN 1 68,000 0.03 35 20001 to 25000 793,366
19 25001 to 30000 528,049
SAADIA NAVEED 1 1,515,037 0.65 12 30001 to 35000 389,510
EHSAN ALI MALIK 1 1,125 0.00 8 35001 to 40000 305,581
7 40001 to 45000 304,157
DR. JAVED MAJEED 1 3,988,443 1.71 8 45001 to 50000 388,925
MARGARET ELIZABETH MAJEED 1 920,653 0.39 6 50001 to 55000 310,287
1 55001 to 60000 56,375
JAMILA WAQAR 1 30,843 0.01 4 60001 to 65000 251,731
ALIYA AFZAL 2 2,666,457 1.14 7 65001 to 70000 474,781
3 70001 to 75000 218,038
LAIQA HASAN 1 2,748,185 1.18 3 75001 to 80000 233,350
ZEELAF MUNIR 1 1,551,606 0.67 7 80001 to 85000 579,669
3 85001 to 90000 270,000
RABIA SHAIKH 1 1,515,037 0.65 2 90001 to 95000 186,681
KHAWAR M. BUTT 1 28,641,268 12.29 1 95001 to 100000 98,000
4 100001 to 105000 414,549
ISHA BUTT ABDULLAH 1 1,515,037 0.65 2 105001 to 110000 214,078
MARIAM EHSAN ALI MALIK 1 33,800 0.01 3 110001 to 115000 336,681
6 115001 to 120000 701,036
ADAM FAHY MAJEED 1 4,405,881 1.89 1 135001 to 140000 139,000
1 140001 to 145000 142,618
1 145001 to 150000 147,825
Associated Companies, undertakings and related parties 2 78,911,813 33.85 1 155001 to 160000 157,812
2 160001 to 165000 328,420
1 165001 to 170000 166,875
NIT & ICP - - - 1 195001 to 200000 200,000
1 275001 to 280000 279,000
1 315001 to 320000 317,687
Banks Development Financial Institutions, Non Banking Financial Institutions. 18 4,802,892 2.06 1 370001 to 375000 371,250
Insurance Companies,Modarabas and Mutual Funds 1 445001 to 450000 446,400
1 545001 to 550000 550,000
1 570001 to 575000 571,877
General Public 1 590001 to 595000 591,425
1 625001 to 630000 628,906
a. Local 3,633 28,193,621 12.09 1 760001 to 765000 765,000
b. Foreign 193 372,202 0.16 1 870001 to 875000 875,000
1 920001 to 925000 920,653
Foreign Companies 3 35,581,101 15.26 1 960001 to 965000 964,465
Others 119 3,325,487 1.43 1 1390001 to 1395000 1,391,146
3 1515001 to 1520000 4,545,111
Totals 3,986 233,115,425 100.00 1 1535001 to 1540000 1,537,325
1 1550001 to 1555000 1,551,606
1 2515001 to 2520000 2,518,632
1 2555001 to 2560000 2,557,841
Share holders holding 10% or more Shares Held Percentage 1 2745001 to 2750000 2,748,185
1 2855001 to 2860000 2,858,203
1 3985001 to 3990000 3,988,443
KHAWAR M. BUTT 28,641,268 12.29 1 4405001 to 4410000 4,405,881
ARISAIG INDIA FUND LIMITED 34,949,676 14.99 1 8905001 to 8910000 8,909,938
1 9320001 to 9325000 9,322,856
ATC HOLDINGS (PRIVATE) LIMITED 78,711,813 33.77 1 23000001 to 23005000 23,003,081
1 28640001 to 28645000 28,641,268
1 34945001 to 34950000 34,949,676
1 78710001 to 78715000 78,711,813
3986 233,115,425

Statement of Compliance with Listed Companies
Code of Corporate Governance Regulations, 2019

National Foods Limited For the year ended 30 June 2022
The Company has complied with the requirements of the Regulations in the following manner: 8. The Board has a formal policy and transparent procedures for remuneration of directors in accordance with the
Act and these Regulations.
1. The total number of directors are seven (07) as per the following:
a. Males: Five (05) 9. Following directors have attended Directors’ Training:
b. Females: Two (02) Mr. Abrar Hasan
Mr. Ali H. Shirazi
2. The composition of Board is as follows: Mr. Ehsan Ali Malik
Mrs. Noreen Hasan
a) Independent Directors Mrs. Saadia Naveed
Mr. Ehsan Ali Malik Mr. Zahid Majeed
Mr. Ali H. Shirazi
10. The Board has approved appointment of Chief Financial Officer, Company Secretary and Head of Internal Audit,
b) Other Non-Executive Directors including their remuneration and terms and conditions of employment and complied with relevant requirements
Mr. Zahid Majeed of the Regulations.
Mr. Adam Fahy Majeed
Mrs. Noreen Hasan 11. Chief Financial Officer and Chief Executive Officer duly endorsed the financial statements before approval of
Mrs. Saadia Naveed the Board.
c) Executive Director 12. The Board has formed committees comprising of members given below:
Mr. Abrar Hasan
a) Audit Committee
d) Female directors
Mrs. Noreen Hasan Mr. Ehsan Ali Malik Chairman
Mrs. Saadia Naveed Mrs. Noreen Hasan Member
Mrs. Saadia Naveed Member
3. The directors have confirmed that none of them is serving as a director on more than seven listed companies,
including this Company. b) HR and Remuneration Committee
4. The Company has prepared a Code of Conduct and has ensured that appropriate steps have been taken to Mr. Ali H. Shirazi Chairman
disseminate it throughout the Company along with its supporting policies and procedures. Mr. Ehsan Ali Malik Member
Mrs. Noreen Hasan Member
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 13. The terms of reference of the aforesaid committees have been formed, documented and advised to the
date of approval or updating is maintained by the Company. committee for compliance.
6. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by 14. The frequency of meetings (quarterly/half yearly/ yearly) of the committee were as per following:
Board/ shareholders as empowered by the relevant provisions of the Act and these Regulations.
a) Audit Committee – Five (05)
7. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected by the b) HR and Remuneration Committee – Four (04)
Board for this purpose. The Board has complied with the requirements of Act and the Regulations with respect
15. The Board has outsourced the internal audit function to Messrs. Ernst & Young Ford Rhodes & Co., Chartered
to frequency, recording and circulating minutes of meeting of Board.
Accountants, who are considered suitably qualified and experienced for the purpose and are conversant with
the policies and procedures of the Company.

Statement of Compliance with Listed Companies To the members of National Foods Limited
Code of Corporate Governance Regulations, 2019 INDEPENDENT AUDITOR’S REVIEW REPORT

National Foods Limited For the year ended 30 June 2022
16. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating Review Report on the Statement of Compliance contained in Listed Companies
under the Quality Control Review program of the Institute of Chartered Accountants of Pakistan and (Code of Corporate Governance) Regulations, 2019
registered with Audit Oversight Board of Pakistan, that they and all their partners are in compliance with
International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate
Chartered Accountants of Pakistan and that they and the partners of the firm involved in the audit are not Governance) Regulations, 2019 (the Regulations) prepared by the Board of Directors of National Foods Limited
a close relative (spouse, parent, dependent and non-dependent children) of the Chief Executive Officer, for the year ended 30 June 2022 in accordance with the requirements of regulation 36 of the Regulations.
Chief Financial Officer, Head of Internal Audit, Company Secretary or director of the Company.
The responsibility for compliance with the Regulations is that of the Board of Directors of the Company. Our
17. The statutory auditors or the persons associated with them have not been appointed to provide other services responsibility is to review whether the Statement of Compliance reflects the status of the Company’s
except in accordance with the Act, these Regulations or any other regulatory requirement and the auditors have compliance with the provisions of the Regulations and report if it does not and to highlight any non-compliance
confirmed that they have observed IFAC guidelines in this regard. with the requirements of the Regulations. A review is limited primarily to inquiries of the Company’s personnel
and review of various documents prepared by the Company to comply with the Regulations.
18. We confirm that all requirements of regulations 3, 6, 7, 8, 27,32, 33 and 36 of the Regulations have been
complied with. As a part of our audit of the financial statements we are required to obtain an understanding of the accounting
and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not
For the purpose of Clause 6 (1), the Company has not rounded up the fraction as one since the Board has required to consider whether the Board of Directors’ statement on internal control covers all risks and controls
adequate Independent Directors i.e. 02 Independent Directors out of the Board of 07 Directors. We have duly or to form an opinion on the effectiveness of such internal controls, the Company’s corporate governance
complied with the minimum requirement of Executive & Independent Director. The additional number out of 07 procedures and risks.
is assigned to Non-Executive Director.
The Regulations require the Company to place before the Audit Committee, and upon recommendation of the
Audit Committee, place before the Board of Directors for their review and approval, its related party transactions
and also ensure compliance with the requirements of section 208 of the Companies Act, 2017. We are only
required and have ensured compliance of this requirement to the extent of the approval of the related party
transactions by the Board of Directors upon recommendation of the Audit Committee.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of
Compliance does not appropriately reflect the Company’s compliance, in all material respects, with the
requirements contained in the Regulations as applicable to the Company for the year ended 30 June 2022.
Chief Executive Officer Director
Karachi KPMG Taseer Hadi & Co.

September 23, 2022 Chartered Accountants
UDIN: CR202210201dIgPKXwac

We Enrich Our Reporting
for Stronger Performances
Standalone Financial Statements 2022
Independent Auditor’s Report Independent Auditor’s Report
To The Members of National Foods Limited To The Members of National Foods Limited
Report on the Audit of the Unconsolidated Financial Statements
Opinion Following are the Key audit matters:
S.No Key audit matters How the matters were addressed in our audit
We have audited the annexed unconsolidated financial statements of National Foods Limited (the Company), which
comprise the unconsolidated statement of financial position as at 30 June 2022, and the unconsolidated statement 1. Valuation of Trade debts Our audit procedures to assess the valuation of
of profit or loss and other comprehensive income, the unconsolidated statement of changes in equity, the debtors, among others involved the following:
unconsolidated statement of cash flows for the year then ended, and notes to the unconsolidated financial Refer notes 4.6.1, 4.11.1, and 10 to the Company’s
statements, including a summary of significant accounting policies and other explanatory information, and we state unconsolidated financial statements for the - obtaining an understanding of
accounting policy and particulars of trade debts. management’s basis for the determination of
that we have obtained all the information and explanations which, to the best of our knowledge and belief, were
loss allowance required at the year-end;
necessary for the purposes of the audit.
The Company recognizes a loss allowance at
an amount equal to lifetime expected loss - assessing the method used by the Company
In our opinion and to the best of our information and according to the explanations given to us, the statement of allowances for trade receivables. It involves for recognition of the allowance against the
financial position, statement of profit or loss and comprehensive income, the statement of changes in equity and the management judgement and estimation. doubtful debts in accordance with the
statement of cash flows together with the notes forming part thereof conform with the accounting and reporting applicable standard and assessing the
Considering the above matter, the valuation reasonableness of assumptions used; and
standards as applicable in Pakistan and give the information required by the Companies Act, 2017 (XIX of 2017), in the
of trade debts has been considered a key
manner so required and respectively give a true and fair view of the state of the Company's affairs as at 30 June 2022 - testing the accuracy of the data on a sample
audit matter.
and of the profit and other comprehensive income, the changes in equity and its cash flows for the year then ended. basis extracted from the Company’s
accounting system which has been used
Basis for Opinion to calculate the provision required including
subsequent recoveries.
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the 2 Valuation of Stock-in-trade Our audit procedures to assess the valuation
Unconsolidated Financial Statements section of our report. We are independent of the Company in accordance with of stock-in-trade, amongst others, included
the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted by Refer notes 4.10 and 9 to the Company’s the following:
the Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in unconsolidated financial statements for
accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to the accounting policy and particulars of - obtaining an understanding of and assessing
stock-in-trade. the design and testing the implementation
provide a basis for our opinion.
of management’s controls designed to
Stock-in-trade represents 35% of the Company’s identify obsolete and slow-moving items;
Key Audit Matters total assets at year-end. It comprises raw
material, packing material, work in process, - checking the NRV calculations on a sample
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the and finished goods which are stated at lower basis by comparing the cost with a subsequent
unconsolidated financial statements of the current year. These matters were addressed in the context of our audit of of cost and estimated net realizable value selling price less cost to the sale; and
the unconsolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a (NRV). NRV involves the estimation of the
selling prices and the cost necessarily to be - checking the working on a sample basis
separate opinion on these matters. specific provision for obsolete and
incurred in order to make the sale.
slow-moving stocks-in-trade.
Also, provisions for slow-moving and obsolete
stock-in-trade involve significant management
judgment and estimation.
Considering the above matter, the valuation

of the stock-in-trade has been considered a
key audit matter.
178 | Standalone Financial Statements 2022 Annual Report 2022 | 179

Information Other than the Unconsolidated Financial Statements and Auditor’s Report Thereon - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
Management is responsible for the other information. The other information comprises the information included in the
Annual Report for the year ended 30 June 2022 but does not include the review report on the Statement of - Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
Compliance contained in Listed Companies (Code of Corporate Governance) Regulations, 2019, consolidated and the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
unconsolidated financial statements and our auditor’s report thereon. significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
Our opinion on the unconsolidated financial statements does not cover the other information and we do not express unconsolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
any form of assurance conclusion thereon. are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
In connection with our audit of the unconsolidated financial statements, our responsibility is to read the Other
- Evaluate the overall presentation, structure and content of the unconsolidated financial statements, including the
Information and, in doing so, consider whether the Other Information is materially inconsistent with the unconsolidated
disclosures, and whether the unconsolidated financial statements represent the underlying transactions and
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based
events in a manner that achieves fair presentation.
on the work we have performed, we conclude that there is a material misstatement of this Other Information, we are
required to report that fact. We have nothing to report in this regard. We communicate with the board of directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
Responsibilities of Management and Board of Directors for the Unconsolidated Financial Statements audit.
Management is responsible for the preparation and fair presentation of the unconsolidated financial statements in We also provide the board of directors with a statement that we have complied with relevant ethical requirements
accordance with the accounting and reporting standards as applicable in Pakistan and the requirements of Companies regarding independence, and to communicate with them all relationships and other matters that may reasonably be
Act, 2017 (XIX of 2017) and for such internal control as management determines is necessary to enable the preparation of thought to bear on our independence, and where applicable, related safeguards.
unconsolidated financial statements that are free from material misstatement, whether due to fraud or error.
From the matters communicated with the board of directors, we determine those matters that were of most
In preparing the unconsolidated financial statements, management is responsible for assessing the Company’s ability significance in the audit of the unconsolidated financial statements of the current period and are therefore the key
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
realistic alternative but to do so. in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
The Board of directors are responsible for overseeing the Company’s financial reporting process.
Report on Other Legal and Regulatory Requirements
Auditor’s Responsibilities for the Audit of the Unconsolidated Financial Statements Based on our audit, we further report that in our opinion:
Our objectives are to obtain reasonable assurance about whether the unconsolidated financial statements as a whole a) proper books of account have been kept by the Company as required by the Companies Act, 2017 (XIX of 2017);
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in b) the statement of financial position, the statement of profit or loss and other comprehensive income, the
accordance with ISAs as applicable in Pakistan will always detect a material misstatement when it exists. statement of changes in equity and the statement of cash flows together with the notes thereon have been
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could drawn up in conformity with the Companies Act, 2017 (XIX of 2017) and are in agreement with the books of
reasonably be expected to influence the economic decisions of users taken on the basis of these unconsolidated account and returns;
financial statements.
c) investments made, expenditure incurred and guarantees extended during the year were for the purpose of the
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain Company’s business; and
professional skepticism throughout the audit. We also:
d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the
- Identify and assess the risks of material misstatement of the unconsolidated financial statements, whether due Company and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement The engagement partner on the audit resulting in this independent auditor’s report is Amyn Pirani.
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control. Date: September 23, 2022
Karachi KPMG Taseer Hadi & Co.
UDIN: AR2022102012RrTOyvJq Chartered Accountants

Unconsolidated Statement of Unconsolidated Statement of
Financial Position Profit or Loss and Other Comprehensive Income

As at 30 June 2022 For the year ended 30 June 2022
Note 2022 2021 Note 2022 2021
ASSETS (Rupees in thousand) (Rupees in thousand)
Non - current assets
Property, plant and equipment 5 7,067,013 5,032,273 Sales - Net 25 26,843,062 23,115,798
Intangibles 6 73,943 65,091 Cost of sales 26 (17,875,419) (16,079,696)
Long-term investments 7 45,935 61,719
Long-term deposits 38,444 33,720 Gross profit 8,967,643 7,036,102
Deferred assets 8 53,656 46,816
7,278,991 5,239,619
Current assets Distribution costs 27 (5,191,846) (3,933,845)
Stores, spare parts and loose tools 168,050 150,339 Impairment loss on trade debts 10.1 (11,761) (4,851)
Stock-in-trade 9 6,628,926 4,945,364
Trade debts 10 1,948,605 942,695 Administrative expenses 28 (1,381,167) (1,214,638)
Advances 11 732,502 244,332 Other expenses 29 (293,732) (140,277)
Deposits and prepayments 12 66,005 64,687
Other receivables 13 - 12,274 Other income 30 672,419 107,401
Sales tax refundable - 90,076 Operating profit 2,761,556 1,849,892
Short-term investments at FVTPL 14 1,324,795 1,001,199
Cash and bank balances 15 712,989 2,610,576
11,581,872 10,061,542 Finance costs 31 (180,309) (136,020)
Profit before taxation 2,581,247 1,713,872
TOTAL ASSETS 18,860,863 15,301,161
EQUITY AND LIABILITIES Taxation - net 32 (616,169) (448,680)

Share capital and reserves Profit after taxation 1,965,078 1,265,192
Authorised share capital
1,000,000,000 (30 June 2021: 1,000,000,000) ordinary shares of Rs. 5 each 5,000,000 5,000,000
Other comprehensive income
Share Capital Items that will not be reclassified to statement of profit or loss
Issued, subscribed and paid-up capital 16 1,165,576 932,461
Revenue Reserves
Unappropriated profit 5,343,575 4,543,794 Remeasurements of retirement benefit liability (actuarial gain) 8.6.1 394 47,007
6,509,151 5,476,255 Related deferred tax thereon (114) (13,632)
Non - current liabilities
Long-term finance and deferred income 17 255,976 699,619 280 33,375
Lease liabilities 18 16,671 -
Deferred taxation - net 19 208,878 215,211
Long term provisions 20 22,461 39,441 Total comprehensive income for the year 1,965,358 1,298,567
Deferred liabilities 8 - 7,005
503,986 961,276
Current liabilities
Trade and other payables 21 5,738,658 4,341,706 (Rupees)
Contract liability 22 93,076 148,095
Short-term borrowings 23 4,269,883 2,790,795
Unclaimed dividend 23,161 21,202 Earnings per share - basic and diluted 33 8.43 5.43
Long-term finance and deferred income classified as current - secured 17 416,215 529,799
Mark-up accrued on bank borrowings 80,072 9,138
Taxation - net 32 1,226,661 1,022,895
11,847,726 8,863,630
Contingencies and Commitments 24
TOTAL EQUITY AND LIABILITIES 18,860,863 15,301,161
The annexed notes 1 to 44 form an integral part of these unconsolidated financial statements. The annexed notes 1 to 44 form an integral part of these unconsolidated financial statements.
Chief Executive Officer Chief Financial Officer Director Chief Executive Officer Chief Financial Officer Director

Unconsolidated Statement of Unconsolidated Statement of
Cash Flows Changes in Equity

For the year ended 30 June 2022 For the year ended 30 June 2022
Note 2022 2021 Issued, Revenue reserve -
Note subscribed unappropriated Total
CASH FLOWS FROM OPERATING ACTIVITIES (Rupees in thousand) and paid-up profit
share capital
Cash generated from operations 34 1,567,494 2,572,601 (Rupees in thousand)

Finance costs paid (109,375) (140,324)
Income taxes paid (418,850) (206,463) Balance as at 30 June 2020 745,969 4,177,688 4,923,657
Retirement benefits (15,621) (154,587)
Long-term deposits - net (4,724) (1,157) Transaction with owners in the capacity as owners
Net cash from operating activities 1,018,924 2,070,070 directly recorded in equity - distribution
CASH FLOWS FROM INVESTING ACTIVITES 1 Ordinary share for each 4 Ordinary shares
held - allotted as bonus shares for the year
Capital expenditure (2,679,068) (752,223) ended 30 June 2020 186,492 (186,492) -
Intangible assets (32,311) (51,842)
Proceeds from disposal of operating fixed assets 109,326 61,074 Final cash dividend for the year ended
Purchase of short term investment - net (323,596) (1,000,000) 30 June 2020 @ Rs. 5 per Ordinary share - (745,969) (745,969)
Net cash used in investing activities (2,925,649) (1,742,991)
Total comprehensive income for the year
CASH FLOWS FROM FINANCING ACTIVITES ended 30 June 2021
Proceeds from long-term finance-net (529,799) 206,837 Profit for the year - 1,265,192 1,265,192
Lease rental paid (9,648) - Other comprehensive income - actuarial gain on
defined benefit plan - net of tax 8.6.1 - 33,375 33,375
Proceeds from short-term borrowings-net 650,000 100,000
- 1,298,567 1,298,567
Dividends paid (930,503) (746,558)
Net cash used in financing activities (819,950) (439,721)
Balance as at 30 June 2021 932,461 4,543,794 5,476,255
Transaction with owners in the capacity as owners

Net decrease in cash and cash equivalents (2,726,675) (112,642) directly recorded in equity - distribution
1 Ordinary share for each 4 Ordinary shares

Cash and cash equivalents at beginning of the year 419,781 532,423 held - allotted as bonus shares for the year
Cash and cash equivalents at end of the year 35 (2,306,894) 419,781 ended 30 June 2021 233,115 (233,115) -
Final cash dividend for the year ended

30 June 2021 @ Rs. 5 per Ordinary share - (932,462) (932,462)

ended 30 June 2022
Profit for the year - 1,965,078 1,965,078

Other comprehensive income - actuarial gain on
defined benefit plan - net of tax 8.6.1 - 280 280
- 1,965,358 1,965,358
Balance as at 30 June 2022 1,165,576 5,343,575 6,509,151
The annexed notes 1 to 44 form an integral part of these unconsolidated financial statements. The annexed notes 1 to 44 form an integral part of these unconsolidated financial statements.

Notes to the Unconsolidated Notes to the Unconsolidated
Financial Statements Financial Statements

1. THE COMPANY AND ITS OPERATIONS Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS Standards or
IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed.
1.1 National Foods Limited ("the Company") was incorporated in Pakistan on 19 February 1970 as a private limited
company under the Companies Act, 1913 and subsequently converted into a public limited company under 2.2 Basis of measurement
the repealed Companies Ordinance, 1984 (now Companies Act, 2017) by a special resolution passed in the
extra ordinary general meeting held on 30 March 1988. The Company is principally engaged in These financial statements have been prepared under the historical cost convention except as stated
themanufacture and sale of convenience based food products. The Company is listed on Pakistan Stock otherwise.
Exchange. The registered office of the Company is situated at 12 / CL - 6, Claremont Road, Civil Lines,
Karachi. 2.3 Functional and presentation currency
1.2 The ultimate parent entity of the Company is ATC Holdings (Private) Limited based on control model as These financial statements are presented in Pakistan Rupees which is also the Company's functional
provided under IFRS 10 - 'Consolidated Financial Statements'. currency. All financial information presented in Pakistan Rupees has been rounded to the nearest thousand
of rupees, unless stated otherwise.
These financial statements are separate financial statements of the Company in which investment in
subsidiary is accounted for on the basis of cost rather than on the basis of reported results. Consolidated 2.4 Use of significant estimates and judgments
financial statements of the company are prepared separately. Details of Company's investments in subsidiary
companies are given in note 7 to these unconsolidated financial statements. The preparation of financial statements in conformity with the accounting and reporting standards
asapplicable in Pakistan, requires management to make judgements, estimates and assumptions that affect
1.3 The manufacturing facilities and sales offices of the Company are situated at the following locations: the application of the Company's accounting policies and the reported amounts of assets, liabilities,
incomeand expenses. The estimates and associated assumptions are based on historical experience and
Factories: various other factors that are believed to be reasonable under the circumstances, the results of which form
- Unit F-160/ C, F- 133, S.I.T.E., Karachi; the basis of making the judgements about the carrying values of assets and liabilities that are not readily
- Office A-13, North Western Industrial Zone, Bin Qasim, Karachi; apparent from other sources. Actual results may differ from these estimates.
- 53-KM G.T. Road, Chainwala Mord Amanabad, Gujranwala;
- A-393, Nooriabad Industrial Estate, Nooriabad; and The estimates and underlying assumptions are reviewed on ongoing basis. Revisions to accounting estimates
- Plot No. 346 & 347 Phase - 2, M-3 Industrial City, Faisalabad. (Not Operational) are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the
period of the revision and future periods if the revision affects both current and future periods. In the process
Sales offices: of applying the Company's accounting policies, management has made the following estimates and
- Office No.107, 1st Floor Parsa Tower, Sharah-e-Faisal, Karachi; judgments which are significant to the financial statements:
- Banglow No. 225, Shahrah-e-Abbasi Akhuwat Nagar Society. Sukkur;
- 2nd Floor, Mall 2 Plaza Main Boulevard Kohinoor City, Jaranwala Road, Faisalabad; Note
- 18-CCA (Commercial Area), Phase VIII, DHA Lahore, Cantt;
- Plot No. 25, Din Plaza, Canal Road, Main Gate Canal View Housing Society, Gujranwala; and Property, plant and equipment 4.1
- 1st Floor, Bilal Complex, Main PWD Road, Sector O-9, Islamabad. Intangible assets 4.3
Stock in trade 4.10
Stores, spares and loose tools 4.9
2. BASIS OF PREPARATION
Trade debts - expected credit loss 4.11.1
2.1 Statement of compliance Provision for refund liability 4.15
Retirement benefits obligations 4.8
These financial statements have been prepared in accordance with the accounting and reporting standards Taxation 4.7
as applicable in Pakistan. The accounting and reporting standards as applicable in Pakistan comprise of: Investment at fair value through profit or loss (FVTPL) 4.6
Impairment 4.11
- International Financial Reporting Standards (IFRS Standards) issued by the International Accounting
Standards Board (IASB) as notified under the Companies Act, 2017;
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants
of Pakistan as notified under the Companies Act, 2017; and
- Provisions of and directives issued under the Companies Act, 2017.


3. ACCOUNTING STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED etc., are recognized in profit or loss in accordance with applicable Standards. The entity measures the
APPROVED ACCOUNTING STANDARDS cost of those items applying the measurement requirements of IAS 2. The standard also removes
therequirement of deducting the net sales proceeds from cost of testing. An entity shall apply
3.1 Standards, interpretations and amendments to published approved accounting standards thoseamendments retrospectively, but only to items of property, plant and equipment that are brought to
that are effective but not relevant: the location and condition necessary for them to be capable of operating in the manner intended
bymanagement on or after the beginning of the earliest period presented in the financial statements in
There are certain new standards, amendments to the approved accounting standards and new which the entity first applies the amendments. The entity shall recognize the cumulative effect of initially
interpretations that are mandatory for accounting periods beginning on or after 1 July 2021. However, these applying the amendments as an adjustment to the opening balance of retained earnings (or other
do not have any significant impact on the Company's financial reporting and therefore have not been detailed component of equity, as appropriate) at the beginning of that earliest period presented.
in these unconsolidated financial statements.
- Reference to the Conceptual Framework (Amendments to IFRS 3) - Reference to the Conceptual
3.2 Standards, interpretations and amendments to published approved accounting Framework, issued in May 2020, amended paragraphs 11, 14, 21, 22 and 23 of and added paragraphs 21A,
standards that are not yet effective: 21B, 21C and 23A to IFRS 3 . An entity shall apply those amendments to business combinations for which
the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1
The following International Financial Reporting Standards (IFRS Standards) as notified under the Companies January 2022.
Act, 2017 and the amendments and interpretations thereto will be effective for accounting periods beginning
on or after 1 July 2022, however these do not have any significant impact on the Company's financial - Classification of liabilities as current or non-current (Amendments to IAS 1) apply retrospectively for the
reporting: annual periods beginning on or after 1 January 2023. These amendments in the standards have been
added to further clarify when a liability is classified as current. Convertible debt may need to be
- Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) effective for the annual periods reclassified as “current”. The standard also amends the aspect of classification of liability as non-current
beginning on or after 1 January 2022 clarifies that the 'cost of fulfilling a contract' for the purposes of by requiring the assessment of the entity’s right at the end of the reporting period to defer the settlement
the onerous contract assessment comprises the costs that relate directly to the contract, including both of liability for at least twelve months after the reporting period. An entity's expectation and discretion at
the incremental costs and an allocation of other direct costs to fulfill the contract. An entity is requried to the reporting date to refinance or to reschedule payments on a long-term basis are no longer relevant for
apply the amendments to contracts for which it has not yet fulfilled all its obligations at the beginning of the classification of a liability as current or non-current. An entity shall apply those amendments
the annual reporting period in which it first applies the amendments (the ate of initial application). retrospectively in accordance with IAS 8.
Restatement of comparative information is not required, instead the amendments require an entity to
recognize the cumulative effect of initially applying the amendments as an adjustment to the opening - Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) – the Board has
balance of retained earnings or other component of equity, as appropriate, at the date of initial application. issued amendments on the application of materiality to disclosure of accounting policies and to help
companies provide useful accounting policy disclosures. The key amendments to IAS 1 include:
- The following annual improvements to IFRS Standards 2018-2020 are effective for annual reporting
periods beginning on or after 1 January 2022: - requiring companies to disclose their material accounting policies rather than their significant
accounting policies;
IFRS 9 – The amendment clarifies that an entity includes only fees paid or received between the entity
(the borrower) and the lender, including fees paid or received by either the entity or the lender on the - clarifying that accounting policies related to immaterial transactions, other events or conditions
other’s behalf, when it applies the ‘10 per cent’ test in paragraph B3.3.6 of IFRS 9 in assessing whether to are themselves immaterial and as such need not be disclosed; and
derecognize a financial liability.
- clarifying that not all accounting policies that relate to material transactions, other events or
IFRS 16 – The amendment partially amends Illustrative Example 13 accompanying IFRS 16 by excluding conditions are themselves material to a company’s financial statements.
the illustration of reimbursement of leasehold improvements by the lessor. The objective of the
amendment is to resolve any potential confusion that might arise in lease incentives. The Board also amended IFRS Practice Statement 2 to include guidance and two additional examples on
the application of materiality to accounting policy disclosures. The amendments are effective for annual
IAS 41 – The amendment removes the requirement in paragraph 22 of IAS 41 for entities to exclude reporting periods beginning on or after 1 January 2023 with earlier application permitted.
taxation cash flows when measuring the fair value of a biological asset using a present value technique.
This amendment enables the fair value measurement of biological assets on a post-tax basis. - Definition of Accounting Estimates (Amendments to IAS 8) introduce a new definition for accounting
estimates clarifying that they are monetary amounts in the financial statements that are subject to
- Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) effective for measurement uncertainty. The amendments also clarify the relationship between accounting policies
annual periods beginning on or after 1 January 2022 clarifies that sales proceeds and costs of items and accounting estimates by specifying that an entity develops an accounting estimate to achieve the
produced while bringing an item of property, plant and equipment to the location and condition necessary objective set out by an accounting policy. The amendments are effective for periods beginning on or after
for it to be capable of operating in the manner intended by management e.g. when testing 1 January 2023, with earlier application permitted, and will apply prospectively to changes in accounting
estimates and changes in accounting policies occurring on or after the beginning of the first annual
reporting period in which the company applies the amendments.


- Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) Subsequent expenditure (including normal repairs and maintenance)
narrow the scope of the initial recognition exemption (IRE) so that it does not apply to transactions that
give rise to equal and offsetting temporary differences. As a result, companies will need to recognize a Expenditures incurred to replace a significant component of an item of property, plant and equipment is
deferred tax asset and a deferred tax liability for temporary differences arising on initial recognition of a capitalised and the asset so replaced is retired. Other subsequent expenditure is capitalised only when it is
lease and a decommissioning provision. For leases and decommissioning liabilities, the associated probable that future economic benefits associated with the item will flow to the entity and the cost of the
deferred tax asset and liabilities will need to be recognized from the beginning of the earliest comparative items can be measured reliably. All other expenditures (including normal repairs and maintenance) is
period presented, with any cumulative effect recognized as an adjustment to retained earnings or other recognised in the profit or loss as an expense when it is incurred.
components of equity at that date. The amendments are effective for annual reporting periods beginning
on or after 1 January 2023 with earlier application permitted. Depreciation
- Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to Depreciation on all items is charged on straight line method. The useful lives for depreciation are indicated in
IFRS 10 and IAS 28) – The amendment amends accounting treatment on loss of control of business note 5.1.
orneither cost nor full step-up of certain retained interests in assets that are not businesses. The
Depreciation on additions to property, plant and equipment is charged from the month the asset is available
effective date for these changes has been deferred indefinitely until the completion of a broader review.
for use up to the month of disposal.
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Depreciation methods, useful lives and residual values of each part of property, plant and equipment that is
significant in relation to the total cost of the asset are reviewed, and adjusted if appropriate, at each reporting
The significant accounting policies set out below are consistently applied for all periods presented in these date.
Gains and losses on disposal
4.1 Property, plant and equipment
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the
Operating assets and depreciation proceeds from disposal with the carrying amount of the property, plant and equipment, and is recognized in
the profit or loss.
Initial recognition
Capital work in progress
The cost of an item of property, plant and equipment is recognised as an asset if it is probable that future Capital work in progress is stated at cost less impairment loss, if any and consists of expenditures incurred
economic benefits associated with the item will flow to the entity and the cost of such item can be measured (including any borrowing cost, if applicable) and advances made in the course of their construction and
reliably. installation. Transfers are made to relevant asset category as and when assets are available for intended use.
Recognition of the cost in the carrying amount of an item of property, plant and equipment ceases when the 4.2 Borrowing costs
items is in the location and condition necessary for it to be capable of operating in the manner intended by the
management. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset form part of the cost of that asset and, therefore are capitalized. Other borrowing costs are recognised
Measurement as an expense. Borrowing cost are calculated based on the effective interest rate.
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. 4.3 Intangibles
The cost of property, plant and equipment includes:
These are stated at cost less accumulated amortisation and any provision for impairment loss. Amortisation
(a) its purchase price including import duties, non refundable purchase taxes after deducting trade discounts of intangible assets is charged to income applying the straight line method at the rates specified in note 6 to
and rebates; the financial statements after taking into account residual value, if any.
(b) any other costs directly attributable to bringing the asset to the location and condition necessary for it to The carrying values of intangible assets are reviewed for impairment when events or changes in
be capable of operating in the manner intended by the management; and circumstances indicate that this carrying value may not be recoverable, if any such indication exists and
where the carrying values exceed the estimated recoverable amounts, the assets are written down to their
(c) Borrowing costs, if any. recoverable amount.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as 4.4 Leases
separate items (major components) of property, plant and equipment.
A contract is, or contains a lease if the contract conveys a right to control the use of an identified asset for a
period of time in exchange for consideration. Right-of-use asset and lease liability are recognised at the


lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost less Initial measurement
any accumulated depreciation and impairment losses if any, and adjusted for any lease payments made at or
before the commencement date, plus any direct initial costs incurred. The right-of-use asset is depreciated A financial asset is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are
using the straight line method over the shorter of the lease term and the asset's useful life. The estimated directly attributable to its acquisition. However, at initial recognition, the Company measures trade
useful lives of assets are determined on the same basis as that for owned assets. In addition, the right-of-use receivables at their transaction price if the trade receivables do not contain a significant financing component.
asset is periodically reduced for impairment losses, if any.
Subsequent measurement
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily Financial assets at FVTPL These assets are subsequently measured at fair value. Net
determined, the entity's incremental borrowing rate. The lease liability is subsequently increased by the gains and losses, including any interest / markup or dividend
interest cost on the lease liability and decreased by lease payments made. income, are recognised in statement of profit or loss.
The Company has elected not to recognise right-of-use asset and lease liabilities of lease contracts of those Investments in mutual funds are carried at fair value based
having lease term equal to or less than 12 months. The lease payments associated with these leases are on net asset value of the fund on each balance sheet date
recognised as an expense on a straight-line basis over the lease term. and the unrealized gain / (loss) is recognized in the statement
of profit or loss.
4.5 Long term investment - subsidiary
Financial assets measured at These assets are subsequently measured at amortised cost
Investment in subsidiary is stated at cost less impairment losses, if any. amortised cost using the effective interest method. The amortised cost is
reduced by impairment losses. Interest / markup income,
4.6 Financial Instruments foreign exchange gains and losses and impairment are
recognised in the statement of profit or loss.
4.6.1 Recognition, classification and measurement - Financial Assets 4.6.2 Financial liabilities - Classification, subsequent measurement and gains and losses
Classification Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as
at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition.
The Company currently classifies its financial assets in the following measurement categories: Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest
expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised
- fair value through profit or loss (FVTPL); and cost using the effective interest method. Interest expense and foreign exchange gains and losses is
- measured at amortised cost. recognised in statement of profit or loss. Any gain or loss on derecognition is also recognised in statement of
profit or loss.
The classification depends on the entity’s business model for managing the financial assets and the
contractual terms of the cash flows.
4.6.3 Derecognition
A financial asset is measured at amortised cost if it meets both of the following conditions and is not
designated as at fair value through profit or loss: Financial assets
- it is held within business model whose objective is to hold assets to collect contractual cash flows; and The Company derecognises a financial asset when:
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and - the contractual rights to the cash flows from the financial asset expire; or
interest on principal amount outstanding.
- it transfers the rights to receive the contractual cash flows in a transaction in which either:
A financial asset shall be measured at fair value through profit or loss unless it is measured at amortised cost - substantially all of the risks and rewards of ownership of the financial asset are transferred; or
or at FVOCI. However the Company may make an irrevocable election at initial recognition for particular
investments in equity instruments that would otherwise be measured at FVTPL to present subsequent - the Company neither transfers nor retains substantially all of the risks and rewards of ownership
changes in fair value in other comprehensive income. and it does not retain control of the financial asset.
On initial recognition, the Company may, irrevocably designate a financial asset as measured at FVTPL if doing The Company enters into transactions whereby it transfers assets recognised in its statement of financial
so eliminates or significantly reduces a measurement or recognition inconsistency ('accounting mismatch') position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these
that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on cases, the transferred assets are not derecognised.
different bases.


Financial liabilities 4.8 Employee retirement benefits

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or Defined benefit plans
expire. The Company also derecognises a financial liability when its terms are modified and the cash flows of
the modified liability are substantially different, in which case a new financial liability based on the modified The Company operates a funded pension scheme and post retirement medical benefit for the individuals
terms is recognised at fair value. mentioned in note 8 to these financial statements.The liability recognised in the statement of financial
position in respect of the defined benefit plans is the present value of the defined benefit obligations at the
On derecognition of a financial liability, the difference between the carrying amount extinguished and the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated
consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or annually by an independent actuary using the projected unit credit method. Remeasurements which comprise
loss. actuarial gains and losses are recognised immediately in other comprehensive income. The latest actuarial
valuation of the defined benefit plans was conducted at 30 June 2022.
4.6.3.1 Trade and other payables
The current and past-service costs and interest income / expenses are recognized immediately in the
Trade and other payables are recognised initially at fair value plus directly attributable costs, if any, and statement of profit or loss.
subsequently measured at amortised cost.
Surplus arising on the actuarial valuation is recognized to the extent these are available under the applicable
trust deed at the present value of economic benefits available in the form of refund or reductions in future
4.6.3.2 Offsetting contribution to the fund.
Financial assets and financial liabilities are offset and the net amount is reported in the financial statements Defined contribution plan
only when the Company has currently legally enforceable right to set-off the recognised amounts and the
Company intends either to settle on a net basis or to realize the assets and to settle the liabilities The Company operates an approved contributory provident fund for eligible employees. Equal monthly
simultaneously. contributions are made, both by the Company and the employees, to the fund at the rate of 10% per annum
of the basic salary.
4.7 Taxation
4.9 Stores, spare parts and loose tools
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent
that it relates to the items recognised directly in equity or in other comprehensive income, in which case the These are valued at weighted average cost less provision for slow moving and obsolete stores, spare parts
tax amounts are recognized directly in equity or other comprehensive income, as the case may be. and loose tools, if any. Items in transit are valued at cost comprising invoice value plus other charges incurred
thereon.
i) Current 4.10 Stock in trade

Current tax is the expected tax payable or receivable on the taxable income or loss for the year; All stocks are stated at the lower of cost and estimated net realisable value. Cost is determined by weighted
calculated using tax rates enacted or substantively enacted by the end of the reporting period. The average method except for those in transit where it represents invoice value and other charges incurred
calculation of current tax takes into account tax credit and tax rebates, if any, and is inclusive of any thereon.Net realisable value signifies the estimated selling price in the ordinary course of business less cost
adjustments to income tax payable or recoverable in respect of previous years. necessarily to be incurred in order to make the sale. Cost of work in process and finished goods includes direct
cost of materials, direct cost of labour and production overheads. Also the provisions and write-offs for all
damaged and obsolete stock in trade are made based on the specific identification of items of stock in trade
ii) Deferred by management.
Deferred tax is accounted for using the balance sheet liability method on all temporary differences arising 4.11 Impairment losses
between tax base of assets and liabilities and their carrying amounts in the financial statements. Deferred
tax liability is generally recognised for all taxable temporary differences and deferred tax asset is 4.11.1 Financial assets
recognised to the extent that it is probable that future taxable profits will be available against which the
deductible temporary differences, unused tax losses and tax credits can be utilised. Deferred tax is The Company recognises loss allowances for Expected Credit Losses (ECLs) in respect of financial assets
charged or credited in the profit or loss (except to the extent that it relates to items recognized directly in measured at amortised cost.
equity or other comprehensive income in which cases these are recognized directly in equity or other
comprehensive income as the case may be). The Company measures loss allowances at an amount equal to lifetime Expected Credit Losses (ECLs) for
rade receivables.


When determining whether the credit risk of a financial asset has increased significantly since initial 4.14 Foreign currency transactions and translation
recognition and when estimating ECLs, the Company considers reasonable and supportable information that
is relevant and available without undue cost or effort. This includes both quantitative and qualitative Foreign currency transactions are translated into Pakistani Rupee using the exchange rates approximating
information and analysis, based on the Company's historical experience and informed credit assessment and those prevailing at the dates of the transactions. All monetary assets and liabilities in foreign currencies
including forward-looking information. aretranslated into Pakistani Rupee at the rates of exchange approximating those prevailing at the reporting
date. Exchange gains / losses on translation are included in income currently.
The Company assumes that the credit risk on a financial asset has increased significantly if it is more than
past due for a reasonable period of time. Lifetime ECLs are the ECLs that result from all possible default 4.15 Revenue recognition
events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result
from default events that are possible within the 12 months after the reporting date (or a shorter period if the Revenue is recognized when a contractual promise to a customer (performance obligation) has been fulfilled
expected life of the instrument is less than 12 months). The maximum period considered when estimating by transferring control over the promised goods and services to the customer. Revenue from sale of goods is
ECLs is the maximum contractual period over which the Company is exposed to credit risk. recognised at the point in time when control of the product has transferred, being when the products are
delivered to the customer. Invoices are generated and revenue is recognised on delivery of goods. Delivery
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying occurs when the products have been shipped to / or and delivered to the customer’s destination / specific
amount of the assets. location, the risks of loss have been transferred to the customer and the customer has accepted the product.
The gross carrying amount of a financial asset is written off when the Company has no reasonable
expectations of recovering of a financial asset in its entirety or a portion thereof. The Company individually Revenue is measured based on the consideration specified in a contract with a customer, net of returns,
makes an assessment with respect to the timing and amount of write-off based on whether there is a amounts collected on behalf of third parties (sales taxes etc.), pricing allowances and other trade discounts.
reasonable expectation of recovery. No asset is recognized for returns as they are not anticipated to be resold. A receivable is recognised when
the goods are delivered as this is the point in time that the consideration is unconditional because only the
The Company expects no significant recovery from the amount written off. However, financial assets that are passage of time is required before the payment is due.
written off could still be subject to enforcement activities in order to comply with the Company's procedures
for recovery of amounts due. A contract liability is also recognised for short- term advances that the Company receives from its customers.
4.11.2 Non-financial assets

4.16 Miscellaneous income
The carrying amount of the Company's non-financial assets are reviewed at each reporting date to determine
whether there is any indication of impairment loss. If such indications exist, the assets' recoverable amount is Miscellaneous income including export rebate is recognised on receipt basis.
estimated in order to determine the extent of impairment loss, if any. Impairment losses are recognised as
expense in the statement of profit and loss. 4.17 Interest / Mark up income / Rental income / late payment by trade debtors
An impairment loss is reversed if there is a change in the estimates used to determine the recoverable Income on Interest / Mark up income and rental income is recognised on a time proportionate basis and in
amount. An impairment loss is reversed only to the extent that the assets' carrying amount does not exceed case of interest and mark-up at the rate of return implicit in the arrangement.
the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment
loss had been recognised. 4.18 Dividend income
4.12 Ijarah Dividend income is recognised when the Company's right to receive is established.
In ijarah transactions' significant portion of the risks and rewards of ownership are retained by the lessor. 4.19 Segment information
Islamic Financial Accounting Standard 2 – 'Ijarah', issued by the Institute of Chartered Accountants of
Pakistan, requires the recognition of ‘ujrah payments’ (lease rentals) against ijarah financing as an expense in Operating segments are reported in a manner consistent with the internal reporting provided to the chief
the statement of profit or loss on a straight-line basis over the ijarah term. operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and
assessing performance of the operating segments, has been identified as the Board of Directors of the
4.13 Provisions Company that makes strategic decisions.
Provisions are recognised when the Company has a present legal or constructive obligation as a result of 4.20 Research and development
past event, 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. Research and development expenditure is charged to statement of profit and loss in the period in which it is
incurred.


4.21 Dividends and appropriations 5.1 Operating fixed assets
Dividend distribution to the Company's shareholders and appropriations to / from reserves are recognised in 2022
the period in which these are approved.
Building on Office
Freehold Leasehold leasehold Plant and Furniture and other Computers Laboratory Vehicles Total
land land machinery and fittings equipments
land equipments
4.22 Government grants
(Rupees in thousand)
At 1 July 2021
Government grant includes any benefit earned on account of a government loan obtained at below market Cost - 232,549 2,870,061 3,444,441 156,310 232,302 235,906 59,592 85,929 7,317,090
rate of interest. The loan is recognized and measured in accordance with IFRS 9 “Financial Instruments”. Accumulated depreciation - (45,285) (510,558) (1,668,847) (117,594) (156,672) (188,269) (27,992) (37,021) (2,752,238)
Net book value - 187,264 2,359,503 1,775,594 38,716 75,630 47,637 31,600 48,908 4,564,852
The benefit of the below-market rate of interest shall be measured as the difference between the initial fair
value of the loan determined in accordance with IFRS 9 and the proceeds received. The difference, Additions / transfer - note 5.5 207,257 - 184,967 338,283 12,875 17,089 110,742 11,192 115,667 998,072
representing the grant amount (income) is recognized over the period of the loan. Disposals
Cost - (2,200) (5,651) (72,467) - (11) (13,035) - (67,426) (160,790)
Accumulated depreciation - 330 2,166 62,591 - 11 12,924 - 17,492 95,514
- (1,870) (3,485) (9,875) - - (111) - (49,934) (65,276)
Depreciation charge for the year - (4,222) (102,845) (358,819) (25,663) (38,352) (39,378) (8,311) (31,333) (608,923)
Note 2022 2021 Closing net book value 207,257 181,172 2,438,140 1,745,181 25,928 54,367 118,890 34,481 83,308 4,888,725
5. PROPERTY, PLANT AND EQUIPMENT (Rupees in thousand) At 30 June 2022

Cost 207,257 230,349 3,049,377 3,710,257 169,185 249,380 333,612 70,784 134,169 8,154,372
Accumulated depreciation - (49,177) (611,236) (1,965,074) (143,257) (195,013) (214,723) (36,303) (50,862) (3,265,647)
Net book value 181,172 2,438,141 1,745,183 25,928 54,367 118,889 34,481 83,307 4,888,725
- 38 - 99 5 - 60 5 - 10 5 5 - 10 3 5 - 10 5
Useful life (years)
Operating fixed assets 5.1 4,888,725 4,564,852
Capital work-in-progress 5.5 2,147,899 467,421 2021
At 1 July 2020
Right-of-use assets 5.7 30,389 - Cost - 232,549 2,680,906 3,094,489 151,483 227,024 216,943 50,580 53,167 6,707,141
7,067,013 5,032,273 Accumulated depreciation - (41,057) (418,993) (1,343,616) (92,969) (120,050) (162,228) (22,209) (27,799) (2,228,921)
Net book value - 191,492 2,261,913 1,750,873 58,514 106,974 54,715 28,371 25,368 4,478,220
Additions / transfer - note 5.5 - - 189,155 349,952 4,827 5,278 26,304 9,012 59,825 644,353
Disposals
Cost - - - - - - (7,341) - (27,063) (34,404)
Accumulated depreciation - - - - - - 7,104 - 6,503 13,607
- - - - - - (237) (20,560) (20,797)
Depreciation charge for the year - (4,228) (91,565) (325,231) (24,625) (36,622) (33,145) (5,783) (15,725) (536,924)
Closing net book value - 187,264 2,359,503 1,775,594 38,716 75,630 47,637 31,600 48,908 4,564,852
At 30 June 2021
Cost - 232,549 2,870,061 3,444,441 156,310 232,302 235,906 59,592 85,929 7,317,090
Accumulated depreciation - (45,285) (510,558) (1,668,847) (117,594) (156,672) (188,269) (27,992) (37,021) (2,752,238)
Net book value - 187,264 2,359,503 1,775,594 38,716 75,630 47,637 31,600 48,908 4,564,852
Useful life (years) - 38 - 99 5 - 60 5 - 10 5 5 - 10 3 5 - 10 5
5.2 Above assets includes fully depreciated assets having cost of Rs. 1.07 billion (2021: Rs. 0.9 billion).


5.3 The depreciation charge for the year has been allocated as follows: Description Cost Accumulated
depreciation
Net book
value
Sale Gain / (loss) Mode of disposal
proceeds on disposal
Particulars
of purchaser
Relationship with
the purchaser
Note 2022 2021

Motor Vehicle 1,405 375 1,030 1,414 384 Company Policy Mr. Imran Akhtar Company's Executive
Cost of sales 26 469,690 419,134 Plant & Machinery 1,818 849 969 130 (840) Negotiation Mr. Amir Majeed Third party
Distribution costs 27 21,088 16,571 Motor Vehicle 1,237 283 954 1,886 933 Company Policy Mr. Abdul Basit Mehmood Company's Executive
Administrative expenses 28 118,149 101,219 Motor Vehicle 1,027 86 941 216 (725) Company Policy Mr. Mian Zohaib Rasool Company's Executive
608,927 536,924
Motor Vehicle 1,059 132 927 1,317 390 Company Policy Mr. Ahmad Salman Company's Executive
Motor Vehicle 1,061 155 906 1,177 271 Company Policy Mr. Abdul Rehman Company's Executive
5.4 The details of property, plant and equipment having net book value of Rs. 500,000 and Motor Vehicle 1,200 300 900 422 (477) Company Policy Mr. M. Sheraz Khan Company's Executive
above sold / disposed of during the year are as follows: Motor Vehicle 1,016 152 864 1,068 205 Company Policy Mr. Taimoor Shahzad Company's Executive
Motor Vehicle 958 180 778 378 (400) Company Policy Mr. Yasir Javed Company's Executive
Motor Vehicle 938 215 723 643 (80) Company Policy Mr. Muhammad Umair Company's Executive
Description Accumulated Net book Sale Gain / (loss) Mode of disposal Particulars of Relationship with
Cost Motor Vehicle 900 183 717 351 (366) Company Policy Mr. Mohsin Ul Ibad Haider Company's Executive
depreciation value proceeds on disposal purchaser the purchaser
Motor Vehicle 887 180 707 1,000 294 Company Policy Mr. Taimoor Aslam Company's Executive
(Rupees in thousand) Motor Vehicle 815 136 679 965 285 Company Policy Mr. Shoaib Arshad Company's Executive
Motor Vehicle 937 266 671 330 (342) Company Policy Mr. Muhammad Company's Executive
Buildings 5,651 2,166 3,485 1,200 (2,285) Negotiation Mr. Khayal Muhammad Company's Vendor Sheraz Khan
Nasir Afirdi Rafiq
Motor Vehicle 780 130 650 404 (246) Company Policy Mr. Zain Abbas Company's Executive
Motor Vehicle 3,149 459 2,690 3,231 540 Company Policy Mr. Saad Bin Khalid Company's Executive
Motor Vehicle 629 39 590 497 (93) Company Policy Mr. Syed Waqar Ahmed Company's Executive
Motor Vehicle 2,914 364 2,550 3,011 461 Company Policy Mr. Shayan Naseem Company's Executive
Motor Vehicle 745 168 577 284 (293) Company Policy Mr. Asif Mehmood Company's Executive
Plant & Machinery 3,685 1,720 1,965 263 (1,702) Negotiation Mr. Amir Majeed Third party
Motor Vehicle 802 227 575 2,231 1,656 Company Policy Mr. Muhammad Hammad Company's Executive
Motor Vehicle 2,268 331 1,937 2,533 595 Company Policy Mr. Ahmad Ismail Company's Executive
Motor Vehicle 802 227 575 878 304 Company Policy Mr. Mohsin Razzak Company's Executive
Motor Vehicle 778 208 570 1,362 791 Company Policy Mr. Faish Ullah Company's Executive
Land - Lease Hold 2,200 330 1,870 2,090 220 Negotiation Punjab Industrial Estates Company's Vendor
Motor Vehicle 778 208 570 862 291 Company Policy Mr. M. Ahsan Khan Company's Executive
Development and
Management Company Motor Vehicle 802 240 562 845 284 Company Policy Mr. Syed Hasan Jafri Company's Executive
(PIEDMC) Motor Vehicle 720 192 528 978 451 Company Policy Mr. Qasim Iqbal Company's Executive
Motor Vehicle 2,297 431 1,866 2,110 244 Company Policy Mr. Inam Ul Haq Company's Executive Plant & Machinery 3,846 3,329 517 275 (242) Negotiation Mr. Amir Majeed Third party
Motor Vehicle 2,124 310 1,814 2,296 482 Company Policy Mr. Humayun Javed Company's Executive Motor Vehicle 649 132 517 542 25 Company Policy Mr. Zeeshan Ali Company's Executive
Motor Vehicle 2,090 425 1,665 0 (1,665) Company Policy Mr. Irfan Hafeez Company's Executive Motor Vehicle 649 132 517 724 208 Company Policy Mr. Ahmed Ismail Company's Executive
Plant & Machinery 7,045 5,399 1,646 503 (1,143) Negotiation Mr. Amir Majeed Third party Total 85,071 27,185 57,886 54,234 (3,652)
Motor Vehicle 1,934 387 1,547 1,870 322 Company Policy Mr. Rahim Hasan Company's Executive
Motor Vehicle 1,403 117 1,286 1,348 61 Company Policy Mr. Hatif Yousuf Company's Executive 5.5 Capital work-in-progress (CWIP) Note 2022 2021
Motor Vehicle 1,576 296 1,280 642 (638) Company Policy Mr. Abdul Kaleem Company's Executive
Motor Vehicle 1,421 148 1,273 1,316 43 Company Policy Mr. Wassi Abbas Company's Executive
Motor Vehicle 1,320 83 1,237 992 (246) Company Policy Mr. Muhammad Ibrahim Company's Executive Civil works 5.5.1 1,308,446 50,278
Motor Vehicle 1,573 393 1,180 1,268 88 Company Policy Mr. M. Shahmir Khan Company's Executive Advance against civil work 599,542 -
Motor Vehicle 1,539 371 1,168 2,967 1,800 Company Policy Mr. Syed Hasan Ali Khan Company's Executive Plant and machinery 161,431 114,228
Motor Vehicle 1,386 254 1,132 1,351 219 Company Policy Mr. M. Uzair Ahmed Khan Company's Executive Advance against Plant & Machinery and Office Equipment 60,118 -
Office equipment 8,335 112
Motor Vehicle 1,292 188 1,104 550 (554) Company Policy Mr. Mian Anjum Hafeez Company's Executive
Furniture & Fixtures 7,879 -
Motor Vehicle 1,246 182 1,064 1,028 (37) Company Policy Mr. M.Aneeque Khan Company's Executive Advance against motor Vehicles and furniture & fixtures 2,148 2,252
Khakwani
Advance against computer - 16,220
Motor Vehicle 1,451 411 1,040 1,266 227 Company Policy Mr. Col. Khalid Mahmood Company's Executive Advance against acquisition of land - 284,331
Motor Vehicle 1,183 148 1,035 714 (322) Company Policy Mr. Taimoor Jamal Khan Company's Executive 2,147,899 467,421


5.5.1 Includes borrowing costs capitalized during the year amounting to Rs. 103.9 million. 5.7.1 The depreciation charge for the year has been allocated as follows:
5.5.2 During the year the additions to CWIP and transfer of respective assets to operating fixed assets amounted Note 2022 2021
to Rs. 1,703.16 million (2021: Rs. 438.98 million) and Rs. 362.06 million (2021: Rs. 347.18 million) respectively. (Rupees in thousand)
5.6 Particulars of immovable property (i.e. land and building) in the name of the Company are as follows: Cost of sales 26 8,390 -
Distribution costs 27 393 -
Administrative expenses 28 1,393 -
Location Usage of immovable property Geographical Location Total Area (In Sq. Ft.) Covered Area (In Sq. Ft.) 10,176 -
Corporate office Office Building 12/CL-6 Claremount Road, 45,099 40,589

Civil Lines, Karachi
6. INTANGIBLES
Computer software and ERP System 6.1 32,285 33,104
S.I.T.E. Manufacturing plant Unit F-160/ C, F- 133, 76,491 62,029
S.I.T.E., Karachi Systems under development - Capital work-in-progress 6.3 41,658 31,987
73,943 65,091
Port Qasim Manufacturing plant Office A-13, North Western 435,600 265,556
Industrial Zone, Bin Qasim, Karachi
6.1 Computer software and ERP System
Nooriabad Manufacturing plant A-393, Nooriabad Industrial Estate, 602,951 120,112

Nooriabad Net carrying value basis
Opening net book value 33,104 37,301
Gujranwala Manufacturing plant 53-KM G.T. Road, Chainwala Mord 130,000 36,000 Additions (at cost) / transfer 22,640 27,716
Amanabad, Gujranwala Amortisation for the year (23,459) (31,913)
Closing net book value 32,285 33,104
Faisalabad Land Plot No. 346 & 347 Phase - 2, 1,086,480 532,375
M-3 Industrial City, Faisalabad
Gross carrying value basis
Cost 327,728 304,150
5.7 Right-of-use assets Accumulated amortisation (295,443) (271,046)
Leasehold Storage Net book value 32,285 33,104
Note Property Tank Total
(Rupees in thousand) Useful life (years) 3 3
As at June 30, 2020 - - -

6.2 The amortization charge for the year has been allocated as follows:
Additions - - -
Depreciation charge - - - Cost of sales 26 409 129
As at June 30, 2020 - - -
Distribution costs 27 615 1,231
Addition 23,785 16,780 40,565 Administrative expenses 28 22,434 30,553
Depreciation charge 5.7.1 (1,786) (8,390) (10,176) 23,458 31,913
As at June 30, 2020 21,999 8,390 30,389
Lease term 3 2
6.3 This represent amount given to vendor for the development of software which is expected to
be capitalised next year.


7. LONG TERM INVESTMENTS National Foods Pakistan (UK) Limited
Note 2022 2021 National Foods Pakistan (UK) Limited was incorporated in United Kingdom on 29 May 2013 as a
private company under the UK Companies Act, 2006. The company is a wholly owned subsidiary of
National Foods DMCC and will be principally engaged in the trading of food products, although
currently it is not operational.
Investment at fair value through profit or loss (FVTPL)
Naimat Collateral Management Company Limited 30,000 30,000
National Epicure Inc.
Less: Provision for Impairment 7.1 (15,784) -
7.1.1 14,216 30,000
National Epicure Inc. ("NEI") was incorporated in Canada on 16 October 2013 under the Canada
Investment in subsidiary - at cost
Business Corporations Act. NEI is a wholly owned subsidiary of National Foods DMCC. NEI is the
National Foods DMCC 7.2 31,719 31,719
holding company of A-1 Bags & Supplies Inc. as mentioned below.
45,935 61,719
A-1 Bags & Supplies Inc.

7.1 The movement in provision for impairment during the year is as follows:
A 1 Bags & Supplies Inc. was incorporated under the Business Corporations Act of Ontario on March
14, 2001. National Epicure Inc. acquired 60% holding in A-1 Bags and Supplies Inc. in the year 2017
Balance at beginning of the year - -
and is principally engaged in distribution and wholesale of food products, disposables, janitorial and
Provision recognized during the year 7.1.1 (15,784) -
sanitation products.
Balance at end of the year (15,784) -
National Epicure USA Inc.
National Epicure USA Inc. was incorporated in USA on 1 December 2021 under the General
7.1.1 On 25 February 2020, the Company subscribed 2,999,500 ordinary shares of Rs.10 each in Naymat Corporation Law of the State of Delaware, USA with an authorized share capital of 500 shares with
Collateral Management Company Limited (NCMCL). The Company's shareholding gives it ownership interest
a par value of $0.0001 per share. Shares have not yet been issued by this entity and has not
and voting power of 10% in it. NCMCL is an unlisted public company that was incorporated under Companies
commenced its operations. The company is a subsidary of National Foods DMCC.
Act, 2017 on 21 January 2020 and has its registered office at C-25/B, Block 4, Clifton, Karachi Saddar Town,
Sindh, Pakistan. It is engaged in the business of providing storage and preservation services for a range of
agricultural commodities as well as issuing credible warehouse receipts for agricultural commodity financing. 8. DEFERRED (ASSETS) / LIABILITIES
Investment in NCMCL is carried at fair value through profit or loss (FVTPL). The assessment of the fair value 2022 2021
is based on their unaudited accounts. (Rupees in thousand)
7.2 The Company has a wholly owned (100%) subsidiary which was set up in United Arab Emirates in 2012 and is Pension Plan (43,806) (46,816)
carried at cost. The subsidiary was formed as a limited liability company and commenced operations from
Pensioners' Medical Plan (9,850) 7,006
March 2013. National Foods DMCC (NF DMCC) was registered on 7 November 2012 in Dubai Multi
(53,656) (39,810)
Commodities Centre (“DMCC”) pursuant to Dubai (DMCC) Law No. 4 of 2001 and operates in the United Arab
Emirates (“UAE”) under a trade license issued by DMCC. The registered address of the Company is Unit No.
R30-26, Floor No. 30, R Serviced Offices JLT, Reef Tower, Plot No. 01 Jumeirah Lakes Towers Dubai, United
Arab Emirates.
8.1 The Company currently operates a funded pension scheme and post retirement medical benefit for
the Chief Executive. In addition, payments are also being made from the pension scheme for the
The primary objective of NF DMCC is to boost export sales of its parent company through trading in food spouse of the two late Directors. Actuarial valuation of these plans is carried out every year and the
stuff and other services. NF DMCC also has following two wholly owned direct subsidiaries, one indirect latest actuarial valuation was carried out as at 30 June 2022.
subsidiary and one newly incorporated group Company as follows:


8.2 Plan assets held in trust are governed by local regulations which mainly include the Trust Act, 1882, the 8.6.1 Net actuarial gain recognized in other comprehensive income for the above two plans is Rs. 0.394 million
Companies Act, 2017, the Income Tax Rules, 2002 and Rules under the Trust Deed of the Plans. Responsibility (2021: Rs. 47.007 million).
for governance of the Plans, including investment decisions and contribution schedules, lies with the Board
of Trustees. The Company appoints the Trustees and all Trustees are employees of the Company.
Pension Plan Pensioners’ Medical Plan
Note 2022 2021 2022 2021
8.3 The latest actuarial valuation of the Fund as at 30 June 2022 was carried out using the Projected Unit Credit
Method. Details of the Fund as per the actuarial valuation are as follows: (Rupees in thousand) (Rupees in thousand)
8.7 Expense recognised in profit
and loss account
8.4 Balance sheet reconciliation Component of defined benefit costs
recognized in profit and loss account 6,485 6,511 1,463 1,809
Current service cost
Pension Plan Pensioners’ Medical Plan Net interest cost 18,819 16,770 6,792 7,742
Note 2022 2021 2022 2021 - Interest cost on defined benefit obligation (23,390) (12,119) (2,683) (5,056)
- Interest income on plan assets (4,570) 4,651 4,109 2,686
(Rupees in thousand) (Rupees in thousand)
1,915 11,162 5,573 4,495
Present value of defined
8.8 Movement in the present value of
benefit obligations 8.8 210,740 181,747 54,087 67,517 defined benefit obligations
Fair value of plan assets 8.9 & 8.10 (254,546) (228,563) (63,938) (60,511)
(43,806) (46,816) (9,850) 7,006 Obligation as at July 1 181,747 180,215 67,517 84,866
8.5 Movement in the net liability Current service cost 6,485 6,511 1,463 1,809
recognised in the balance sheet 18,819 16,770 6,792 7,742
Interest cost
Benefits paid (2,576) (2,912) (1,892) (1,884)
Opening balance (46,816) 50,165 7,006 30,358 6,265 (18,837) (19,794) (25,016)
Actuarial loss / (gain) 8.6
Remeasurements recognised in 210,740 181,747 54,087 67,517
Obligation as at June 30
other comprehensive income 8.6 16,717 (21,043) (17,111) (25,964)
Charge / (income) for the year 8.7 1,915 11,162 5,573 4,495 8.9 Movement in the fair value
Contribution made (15,621) (87,100) - - of plan assets
Payments made to members
(beneficiaries) by the Company - - (1,892) (1,884) As at July 1 228,563 130,050 60,512 54,508
Closing balance (43,806) (46,816) (6,425) 7,006 Expected return on plan assets 23,390 12,119 6,109 5,056
Contribution made 15,621 87,100 - -
8.6 Remeasurements recognised in other Benefits paid (2,576) (2,912) - -
comprehensive income Return on plan assets excluding interest (10,452) 2,206 (2,683) 948
As at June 30 254,546 228,563 63,938 60,512
Re-measurements: Actuarial
loss / (gain) on obligation
8.10 Components of Plan assets
- Loss / (Gain) due to change in
financial assumptions 2,688 (35,300) (13,104) (171) Cash at bank - current account 134,464 115,911 33,775 30,687
- Loss / (Gain) due to change in experience
Special saving certificates 8.10.1 6,530 - 1,640 -
adjustments 3,577 16,463 (6,690) (24,845) Investment in mutual fund 8.10.2 113,552 112,652 28,522 29,825
Actuarial loss / (gain) on defined benefit
254,546 228,563 63,938 60,512
obligation - net 6,265 (18,837) (19,794) (25,016)
Re-measurements: Return on plan assets 8.10.1 These certificates of National Saving Schemes of the Government of Pakistan has matured.
Actuarial loss / (gain) 10,452 (2,206) 2,683 (948)
8.10.2 This represents 331,446 units, 100,701 units, 604,129 units, 617,873 units and 109,210 units invested in
Total defined benefit cost recognised in other
NAFA Asset Allocation Fund, Al Meezan Asset Allocation Fund, HBL Money Market Fund, HBL Cash Fund and
comprehensive income 16,717 (21,043) (17,111) (25,964)
HBL Equity Fund respectively wth the fair value of Rs. 4.95 million, Rs. 4.03 million, Rs. 62.02 million, Rs. 62.5
million and Rs. 8.5 million respectively.


8.11 Principal actuarial assumptions The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to
2022 2021 the previous year.
Expected rate of increase in salaries 13.50% 10.25% 8.14 The weighted average duration of defined benefit obligation of pension plan and pensioners' medical plan is
Expected rate of increase in pension 6.50% 3.25% 10.65 years and 9.06 years respectively.
Expected rate of increase in medical benefits 11.50% 10.25%
Discount factor used 13.50% 10.25% 8.15 During the year, the Company contributed Rs. 78.06 million (2021: Rs. 70.33 million) to the employee
Mortality rate SLIC (2001-05) SLIC (2001-05) provident fund.
Rates of employee turnover Light Light
9. STOCK-IN-TRADE
8.12 Cost for the next financial year
As per the actuarial valuation report charge for the next financial year is as follows:
Note 2022 2021
2023 (Rupees in thousand)

Pension Plan Pensioners’ Medical Plan
(Rupees in thousand) Raw materials 9.1 & 9.2 3,185,293 1,940,112
Provision for obsolescence 9.4 (78,559) (58,725)
Current service cost 1,029 237 3,106,734 1,881,387
Packing materials 9.1 &9.2 749,519 742,879

8.13 Sensitivity analysis for actuarial assumptions Provision for obsolescence 9.4 (170,659) (41,595)
578,860 701,284
The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
Work in process 1,689,635 1,165,369

Change in Impact on defined benefit obligation -
Increase / decrease in liability Provision for obsolescence 9.4 (72,348) (73,219)
assumption
1,617,287 1,092,150
2022 Finished goods 9.1 & 9.3 1,373,441 1,396,183
Discount rate at June 30 1.00% 237,477 297,174 Provision for obsolescence 9.4 (47,395) (125,640)
Future salary increases 1.00% 218,199 203,497 1,326,047 1,270,543
Future pension increases 1.00% 229,808 194,080
Medical cost increases 1.00% 59,841 49,175 6,628,926 4,945,364
2021
Discount rate at 30 June 1.00% 221,080 283,120 9.1 Stock in trade includes Rs. 3.99 billion (2021: Rs. 2.78 billion) held with third parties. This includes goods in
Future salary increases 1.00% 189,771 174,032 transit of Rs. 17.5 million against the sale of National Foods DMCC.
Medical cost increases 1.00% 76,247 60,239 9.2 This include goods in transit pertaining to raw materials amounting to Rs. 171 million.
The sensitivity analysis is based on a change in an assumption while holding all other assumptions constant.
9.3 Above balances include items costing Rs. 75.28 million (2021: Rs. 124.71 million) valued at net realisable value
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When
of Rs. 62.15 million (2021: Rs. 101.08 million).
calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same
method (present value of the defined benefit obligation calculated with the projected unit credit method at 9.4 During the year, the Company recorded provision / (2021: reversal) for obsolescence of Rs. 355.77 million
the end of the reporting period) has been applied when calculating the pension liability recognised within the (2021: Rs. 235.43 million) and has written off stocks against provision amounting to Rs. 224.89 million
balance sheet. (2021:Rs.57.20 million).


10. TRADE DEBTS 11. ADVANCES
Note 2022 2021 Note 2022 2021

Considered good - unsecured Considered good

- Related parties 10.2 655,692 496,456 Employees - against expenses 11.1 - 443
- Others 1,292,913 446,239 Suppliers & others 732,502 243,889
1,948,605 942,695 732,502 244,332
Considered doubtful 36,834 25,073 Considered doubtful

1,985,439 967,768 Suppliers 41,929 27,684
774,431 272,016
Allowance for impairment 10.1 (36,834) (25,073)
1,948,605 942,695 Provision for doubtful advances to suppliers (41,929) (27,684)
732,502 244,332
10.1 The movement in the allowance for impairment on trade debts is as follows:
2022 2021 11.1 These advances are unsecured and do not carry any mark up. This also includes cash margin of Rs. 397.6 million
on account of imports of machinery. Remaining balance of Rs. 334.83 million has been paid to the supplier for
the raw material purchase.
Opening allowance for impairment 25,073 20,222

12. DEPOSITS AND PREPAYMENTS
Charge for the year - net 11,761 4,851 Note 2022 2021
Closing allowance for impairment 36,834 25,073 (Rupees in thousand)
Considered good
10.2 Receivable from a related party
Deposits 12.1 16,536 23,236
2022 2021 Prepayments 49,469 41,451
66,005 64,687
12.1 These trade deposits and prepayments are mainly against rent, insurance and utilities and are not considered
National Foods DMCC 655,692 496,456
doubtful. These do not carry any mark up arrangement.
10.2.1 The maximum aggregate amount due from the related party at the end of any month during the year 13. OTHER RECEIVABLES Note 2022 2021
are as follows:
2022 2021 Due from related parties
(Rupees in thousand) - ATC Holdings (Private) Limited - Holding Company - 956
- Director - 205
National Foods DMCC 1,131,421 1,022,634
- 1,161
Receivable from the Provident fund - 4,575

As at 30 June 2022, the gross amount of trade debts due from a related party is Rs. 655.69 million (2021: Rs. Workers' Profit Participation Fund 13.1 - 5,969
496.46 million) out of which Rs. 41.77 million (2021: Rs.496.46 million) were past due. The ageing of these trade Others - 569
debts is up to 3 months. - 12,274


13.1 Workers’ Profit Participation Fund Invested Redeemed As at 30

As at 1
Name of the Mutual Fund during during the June
2022 2021 July 2021
the year year 2022
(Number of units)
Receivable as at July 1 5,969 (70,765)
Allocation for the year (138,777) (92,653) MCB Cash Management Optimizer - 500,000 - 500,000
(132,808) (163,418) ABL Cash fund - 500,409 250,354 250,055

Meezan Daily Income Fund - 502,550 502,550 -
Amount paid during the year 130,621 169,387 Habib Islamic Money Market Fund - 359,739 359,739 -
(Payable) / Receivable as at June 30 (2,187) 5,969 HBL Cash Fund - 751,611 251,611 500,000
Meezan Rozana Amadni Fund 1,001,199 1,126,809 2,128,008 -
Faysal Islamic Cash Fund - 343,171 343,171 -
Faysal Money Market Fund - 508,523 508,523 -
14. SHORT TERM INVESTMENTS at FVTPL Faysal Stock Fund - 36,427 - 36,427
Alfalah GHP Money Market Fund - 512,106 512,106 -
Invested Redeemed As at 30
As at 1 Alfalah GHP Stock Fund - 38,313 - 38,313
Name of the Mutual Fund during during the June
July 2021
the year year 2022 Alfalah Islamic Rozana Amadni Fund - 348,721 348,721 -
Total 1,001,199 5,528,379 5,204,783 1,324,795
(Number of units)
MCB Cash Management Optimizer - 4,935,844 - 4,935,844

Habib Islamic Money Market Fund - 3,555,631 3,555,631 -
HBL Cash Fund - 7,436,464 2,501,263 4,935,201
15. CASH AND BANK BALANCES
Meezan Daily Income Fund 20,023,980 10,051,001 30,074,981 - Note 2022 2021
Meezan Rozana Amadni Fund - 22,536,177 22,536,177 -
Faysal Stock Fund - 1,350,554 681,448 669,106
Faysal Islamic Cash Fund - 3,431,714 3,431,714 - Cash in hand 2,230 1,874
Faysal Money Market Fund - 9,639,908 9,639,908 -
ABL Cash fund - 49,113,206 24,590,583 24,522,623 Cash at bank - current accounts
Alfalah GHP Money Market Fund 10,068,035 10,068,035 - - local currency 15.1 676 2,186,155
Alfalah GHP Stock Fund 853,202 430,206 422,996 - foreign currency 703,507 419,338
Alfalah Islamic Rozana Amadni Fund 3,480,179 3,480,179 - 704,183 2,605,493
Total 20,023,980 126,451,915 110,990,125 35,485,770 Cash at bank - profit and loss sharing accounts
- local currency 15.2 6,575 3,209
712,989 2,610,576
15.1 The current accounts are placed with banks under conventional banking arrangements.
15.2 These carry markup rates of 8% per annum ( 2021: 6.5% per annum).


16. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL 18. LEASE LIABILITIES AGAINST RIGHT-OF-USE ASSET
2022 2021 2022 2021 2022 2021
(Number of shares) (Rupees in thousand) (Rupees in thousand)
3,139,975 2,511,980 Ordinary shares of Rs. 5 (2020: 15,700 12,560 Opening balance - -
Rs. 5) each issued for consideration paid in cash Additions 40,565 -
Interest expense 1,509 -
229,975,450 183,980,360 Ordinary shares of Rs. 5 1,149,876 919,901 Rental paid (9,648) -
Rs. 5) each as fully paid bonus shares
32,425 -
233,115,425 186,492,340 1,165,576 932,461 Current portion (15,754) -

Balance as at 30 June 2022 16,671 -
16.1 As at 30 June 2022, ATC Holdings (Private) Limited (ultimate parent company) held 78,911,813
(2021: 62,649,451) ordinary shares of the company.
17. LONG TERM FINANCE AND DEFERRED INCOME

Rentals Interest charge Present value
Note 2022 2021
LONG TERM FINANCE Not later than one year 18,229 2,475 15,754
Secured long-term finances utilised under mark-up arrangements 17.1 670,154 1,199,952 Later than one year but not later than three years 18,196 1,525 16,671
Classified under current liability (414,178) (502,370) 36,425 3,999 32,425
255,976 697,582
DEFERRED INCOME
18.1 The Company has used the incremental borrowing rate up to 13.45%.
Deferred income - government grant 17.2 2,037 29,466
Current portion of deferred income - government grant (2,037) (27,429) 19. DEFERRED TAXATION - NET
- 2,037
2022 2021
255,976 699,619
Credit / (debit) balance arising in respect of:
17.1 This represents original long term finance facilities of Rs. 793 million and salary refinance loan of 824.6 million
Accelerated tax depreciation / amortisation 375,935 335,069
obtained from a commercial bank. These finances carry markup at 3 month Kibor + 0.1%, + 0.4% & SBP rate
+ 0.3%, + 1% & + 2% (effective rate 9.03% to 9.84%). The loan are secured by way of hypothecation of Right-of-use assets 9,293 -
Company's present and future fixed assets and hypothecation of company's present and future stocks and Retirement benefits 13,746 13,632
receivables. These loans are from 3 years to 10 years. These loans are fully repayable in equal quarterly 398,975 348,701
installment of rupees 132.45 million between July 2022 to September 2029.
Provision for stock obsolescence (112,833) (79,772)

17.2 Due to the effects of pandemic, State Bank of Pakistan took various steps to support the economy. SBP
introduced a refinance scheme for payment of salaries and wages at subsidized rate of borrowing. Allowance for impairment on trade debts (11,232) (6,685)
Lease liabilities (9,916) -
The company has obtained the said borrowing from Habib Bank Limited at subsidized rate of 2% on 25th June Retirement benefits (56,116) (47,033)
2020 and 1% on 21st August 2020 which are repayable by October 2022 in 8 quarterly installments to HBL
Provisions for GIDC and others (190,096) (133,490)
under the SBP scheme. Above balance shall be recignized in income by October 2022.
208,878 215,211


19.1. Movement in deferred taxation 21. TRADE AND OTHER PAYABLES

Note 2022 2021
2022
Recognized in Recognized (Rupees in thousand)
Balance as at 1 Balance as
statement of in other
July 2021 at 30 June
profit or loss comprehensive
(Note 33) income
2022 Trade Credit 750,809 961,225
Taxable temporary (Rupees in thousand) Accrued expenses and liabilities 4,169,135 2,840,440
differences arising on: Workers' Profit Participation Fund 13.1 2,187 -
Accelerated tax depreciation 335,069 40,866 - 375,935
Workers' Welfare Fund 21.4 221,700 165,763
Right-of-use assets - 9,293 - 9,293
Payable to Provident Fund 21.1 4,963 -
335,069 50,160 - 385,229
Refund liabilities 21.2 69,694 61,034
Deductible temporary differences arising on:
Provision related to slow moving stock (79,772) (33,061) - (112,833) Tax deducted at source 393,701 237,629
Allowance for impairment on trade debts (6,685) (4,547) - (11,232) Lease liability - current portion 18 15,754 -
Provision for GIDC & other provisions (47,033) (9,083) - (56,116) Provision - current portion 20 50,038 29,875
Lease Liabilities - (9,916) - (9,916) Sales tax payable 1,012 -
Unrealized loss on short term investment 13,632 - 114 13,746
Other liabilities 59,631 45,691
(119,858) (56,606) 114 (176,350)
Due to a related party - Director 21.3 33 50
215,211 (6,447) 114 208,878
5,738,658 4,341,706
2021
Recognized in Recognized
Balance as
Balance as at 1 statement of in other
at 30 June 21.1 All investments out of provident fund have been made in accordance with the provisions of Section 218 of
July 2020 profit or loss comprehensive
(Note 30) income
2021 the Companies Act 2017 and the conditions specified thereunder.
Taxable temporary
differences arising on: (Rupees in thousand)
21.2 This relates to consideration received from the customers for goods sold which the Company expects to
Accelerated tax depreciation 394,373 (59,304) - 335,069 refund to the customers.
Right-of-use assets - - - -
394,373 (59,304) - 335,069 21.3 This relates to remuneration payable to a director.
Deductible temporary differences arising on:
Provision related to slow moving stock (27,744) (52,028) - (79,772)
21.4 The Finance Act 2008 introduced amendments to the Workers' Welfare Fund (WWF) Ordinance, 1971
whereby the definition of industrial establishment was extended. The amendments were challenged at
Allowance for impairment on trade debts (5,415) (1,270) - (6,685)
various levels and conflicting judgments were rendered by the Lahore High Court, Sindh High Court and
Provision for GIDC & other provisions (47,033) (47,033)
Peshawar High Court. The Company is of the view that it is not liable to pay this liability. However, the
Unrealized loss on short term investment - - 13,632 13,632
management has made provision for WWF for the years from 2015 to 2022 amounting to Rs. 221 million as a
(80,192) (53,298) 13,632 (119,858)
matter of abundant caution.
314,181 (112,602) 13,632 215,211
The Honourable Supreme Court of Pakistan vide its judgment dated 10 November 2016, has upheld the view
20. LONG TERM PROVISIONS of Lahore High Court and decided that WWF is not a tax and hence the amendments introduced through
This represents liability against Gas Infrastructure Development Cess (GIDC) amounting to Rs. 76.01 million Finance Act 2008 are ultra-vires to the Constitution. The Federal Board of Revenue has filed Civil Review
and are presented at present value of the total liability of Rs. 72.5 million (2021: Rs. 69 million) discounted in Petitions in respect of above judgment with the prayer that the judgment dated 10 November 2016 passed
accordance with ICAP technical service guidelines “Accounting for Gas Infrastructure Development Cess in the Civil Appeal may kindly be reviewed in the interest of justice.
(GIDC)” dated 19 January 2021.
The management, as a matter of abundant caution, has decided to maintain the provision of WWF till the
Current portion of the liability amounts to Rs. 50.04 million (2021: Rs. 29.87 million). The future value has been decision of Supreme Court in respect of Civil Review Petition.
discounted at 7.1 % per annum. Monthly installments due under a court order amounts to Rs. 1.58 million and
is due by September 2024.


22. CONTRACT LIABILITY 24. CONTINGENCIES AND COMMITMENTS

Note 2022 2021
(Rupees in thousand) 24.1 There are cases against the company which are outstanding as at 30 June 2022. The management is
confident that the decision will be in favor of the Company.
Advances from customers 93,076 148,095
24.2 The facilities for opening letters of credit amount to Rs. 4.3 billion (2021: Rs. 1.84 billion) and for letters of
guarantee amount to Rs. 515 million (2021: Rs. 215 million) as at 30 June 2022 of which the amount remaining
23. SHORT-TERM BORROWINGS unutilised at year end were Rs. 3.49 billion (2021: Rs. 1.59 billion) and Rs. 136 million (2021:
Rs. 116 million) respectively.
Secured
24.3 Aggregate commitments for capital expenditure as at 30 June 2022 amount to Rs. 3.1 billion (2021: Rs.
Conventional 467.43 million).
Running finance under mark up arrangements 23.1 1,828,359 2,103,935
Export re-finance 23.2 800,000 600,000 24.4 Aggregate commitments in respect of ujrah payments for ijarah financing of motor vehicles bearing from first
habib metro ranging from three months KIBOR + 0.75% (2021: three months KIBOR + 0.75%) while meezan
Money market loan 450,000 -
bank ranging from three to six months KIBOR + 1.25% respectively (2021: six months KIBOR + 1.25%) per
annum for rentals payable monthly as at 30 June 2022 amount to:
Islamic
Running finance under Musharakah 23.3 1,191,524 86,860 2022 2021
4,269,883 2,790,795
Not later than one year 330,443 199,461

23.1 The facilities for running finance available from various commercial banks are for the purpose of meeting
Later than one year but not later than five years 755,640 432,806
working capital requirements. The effective rates of mark-up on these finances range from 9.77% to 10.30%
(2021: 7.29% to 7.92%) per annum. The facilities offer are valid upto 30 June 2022 to 31 May 2023. 1,086,083 632,267
23.2 The Company has short term running finance facility under Export Refinance Scheme of the State Bank of
Pakistan from a commercial bank. The effective rate of mark-up on this facility is 2.5% (2021: 2.5%) per Total sanctioned facilities from banks amount to Rs. 1,801 million, out of which Rs. 1,013 million has been
annum. The facilities offer are valid upto 30 June 2022. utilized by the company.
23.3 The Company has obtained facilities for short-term finance under Running Musharakah. The effective rate of 25. SALES - NET Note 2022 2021
profit is 9.99% to 10.73% (2021: 6.73% to 9.43%) per annum. This facility matures within twelve months and
is renewable. The facilities offer are valid upto 30 June 2022 to 31 January 2023.
Local sales 36,644,222 32,194,639
23.4 The facilities available from various banks amount to Rs. 4.2 billion (2021: Rs. 2.7 billion). The arrangements are
Export sales 25.1 2,220,238 1,960,359
secured by way of pari-passu charge against hypothecation of Company's current and future movable
assets having aggregate charge amounting to Rs. 6.5 billion. These facilities offer are valid upto 31 July 2022. Gross sales 38,864,460 34,154,998
Less: Sales tax (4,905,717) (4,347,990)
33,958,743 29,807,008
23.5 As at 30 June 2022, the unavailed facilities from the above borrowings amounted to Rs. 1.9 billion (2021:
Less:
Rs. 2.2 billion).
- Discount, rebates and allowances (6,577,275) (6,087,224)
- Sales return (538,407) (603,986)
(7,115,681) (6,691,210)
26,843,062 23,115,798


25.1 Exports sales represents sales made to NF DMCC - a wholly owned subsidiary of the Company in 26. COST OF SALES
United Arab Emirates. Note 2022 2021
25.2 Net local sales, net of sales return is Rs. 36.10 billion (2021: Rs. 31.5 billion).
Raw material consumed 10,363,234 8,741,306
25.3 DISAGGREGATION OF REVENUE
Packing material consumed 4,030,332 3,853,071
25.3.1 These financial statements has been prepared on a single reporting segment. Stores and spares consumed 175,941 206,995
Impairment loss against inventory 294,675 252,772
25.3.2 The Company has disaggregated revenue recognised from contracts with customers into categories that Brine and cutting charges 25,771 53,066
depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic
factors. Salaries, wages and other benefits 1,550,391 1,400,337
Contribution to provident fund 23,466 22,758
In the following table, revenue is disaggregated by primary geographical markets and major product lines: Depreciation 5.3 469,690 419,134
Depreciation - ROUA 5.7.1 8,390 -
Amortisation 6.2 409 129
2022 2021 Ujrah payments 26,811 29,286
(Rupees in thousand) Fuel and power 553,189 440,149

Primary geographical markets: Insurance 33,494 22,243
Local 36,644,222 32,194,639 Laboratory, research and development 15,985 14,634
United Arab Emirates 2,220,238 1,960,359 Postage and communications 5,340 13,893
38,864,460 34,154,998 Printing and stationery 8,217 4,697
Major Product Lines: Rent, rates and taxes 370,020 208,816
Condiments 16,780,299 16,326,688 Travelling 239,969 200,103
Culnary 22,084,162 17,828,310 Repairs and maintenance 144,151 78,355
38,864,461 34,154,998
Security charges 34,276 21,316
Inventory destruction charges 20,793 24,011
25.3.3 All non current assets of the Company as detailed in note 5 to these financial statements as of reporting date Others 26.1 61,516 70,484
are located in Pakistan. 18,456,060 16,077,555
25.3.4 The Company's customer base is diverse with no single customer accounting for more than 10% of net sales.
Sales to domestic customers in Pakistan are 94.29% (2021: 93.42%) and to customer outside Pakistan are Opening work in process 1,092,150 1,344,413
5.71% (2021:6.58%) of the revenue. Closing work in process (1,617,287) (1,092,150)
Cost of goods manufactured 17,930,923 16,329,818
Opening stock of finished goods 1,270,543 1,020,421

Closing stock of finished goods (1,326,047) (1,270,543)
17,875,419 16,079,696
26.1 This includes professional service charges amounting to Rs. 24 million.


27. DISTRIBUTION COSTS Note 2022 2021 28.1 This includes expenses in relation to office supplies amounting to Rs. 32 million.
29. OTHER EXPENSES
Salaries, wages and other benefits 1,230,385 860,255 Note 2022 2021
Advertising and sales promotion 1,925,277 1,388,837 (Rupees in thousand)
Outward freight and handling charges 1,267,548 971,634
Contribution to provident fund 35,412 30,042 Workers' Profits Participation Fund 138,777 92,653
Depreciation 5.3 21,088 16,571 Workers' Welfare Fund 55,511 37,061
Depreciation - ROUA 5.7.1 393 - Auditors' remuneration 29.1 4,973 4,521
Amortisation 6.2 615 1,231
Impairment on long term Investments 7.1 15,784 -
Ujrah payments 142,944 99,238
Unrealized loss short term investments at FVTPL 13,819 -
Fuel and power 6,540 6,132
Forwarding charges 71,165 59,713 Demurrage and other related costs 60,160 -
Insurance 30,504 28,720 Donations 29.2 4,708 6,042
Printing and stationery 2,656 3,489 293,732 140,277
Rent, rates and taxes 240,271 202,408
Travelling 164,245 207,097 29.1 Auditors' remuneration
Repairs and maintenance 30,343 28,543 2022 2021
Postage and communications 7,451 7,508 (Rupees in thousand)
Others 15,008 22,427
5,191,846 3,933,845 Audit fee 2,486 2,260
Limited review, special reports and other certifications 2,145 1,950
Out of pocket expenses 342 311
28. ADMINISTRATIVE EXPENSES 4,973 4,521
Salaries, wages and other benefits 629,107 603,024

29.2 Donations to following Organizations and Trusts exceed 10% of the Company's total amount of
Depreciation 5.3 118,149 101,219
donation or Rs. 1 million, whichever is higher:
Depreciation - ROUA 5.7.1 1,393 -
Amortisation 6.2 22,434 30,553 2022 2021
Ujrah payments 35,160 36,982 (Rupees in thousand)
Insurance 9,708 11,646 Pakistan Agricultural Coalition - 3,250
Legal and professional charges 61,354 60,571
Postage and communications 9,353 7,456
Donations did not include any amount paid to any person or organization or institution in
Printing and stationery 13,788 7,573
which a director or his/her spouse had any interest.
Travelling 91,200 49,737
Repairs and maintenance 281,087 178,891
Others 28.1 45,373 53,773
1,381,166 1,214,638


30. OTHER INCOME 32. TAXATION - NET

Note 2022 2021
Note 2022 2021
Income from financial instruments
Exchange gain / (loss) 397,777 (73,889) Current 622,616 538,921
Dividend income from a subsidary company 39,790 - Deferred 19.1 (6,447) (90,241)
Return on profit and loss sharing bank account and 616,169 448,680
term deposits - conventional 16,794 59,333

Unrealized gain short term investments at FVTPL - 1,199 32.1 Income Tax assessment for various tax and accounting years 2004, 2005, 2008, 2011, 2012 and 2014
Realized gain on short term investments at FVTPL 997 - to2018, taken as deemed assessments under section 120 of the Income Tax Ordinance, 2001 were
Income from short term investments at FVTPL - subsequently amended under section 122(5A) of the Income Tax Ordinance, 2001 in which the learned Tax
dividend income 42,854 - authorities has raised several demands. The Company has filed appeals before various appeal forums and has
maintained a provision for any potential future liability.
498,212 (13,357)
32.2 The Company has filed its income tax returns for tax years 2019 to tax year 2021. Tax returns filed by the
Income from non-financial instruments
Company are deemed to be assessed under Section 120 of the Income Tax Ordinance, 2001 unless selected
Profit on disposal of property, plant and equipment 44,050 40,277 for an amendment / audit by the taxation authorities. Tax return may be selected for detailed audit within six
Export rebate 7,844 10,818 years from the end of tax year to which it relates and the Income Tax Commissioner may amendthe assessment.
Rental income 3,074 3,638
Amortisation of government grant 17.2 27,429 46,977
Insurance claim 31,441 - 32.3 Relationship between income tax expense and accounting profit
Scrap sales 54,880 -
Others 5,491 19,048 2022 2021
174,208 120,758 (Rupees in thousand)
672,420 107,401 Profit before taxation 2,581,247 1,713,872
31. FINANCE COSTS Tax at applicable rate of 33% (2021: 29%) 851,812 497,023
Mark-up on: Tax effect of permanent differences 57,607 (26,720)
- Short-term running finances 39,269 3,098 Tax effect of final tax regime (278,194) (21,623)
- Export refinance facility 18,701 13,589 Income subject to lower rate (15,055) -
- Short-term borrowings from a Islamic bank 22,813 204 616,169 448,680
- Long-term loans 65,628 101,834

- Interest on lease liabilities 1,509 -
Bank charges 32,389 17,295
180,309 136,020


33. EARNINGS PER SHARE - BASIC AND DILUTED 2022 2021
33.1 Basic (Rupees in thousand)

2022 2021 Working capital changes
(Rupees in thousand) (Increase) / decrease in current assets
Stores, spare parts and loose tools (17,711) (11,055)
Profit after taxation attributable to ordinary shareholders 1,965,078 1,265,192
Stock in trade (1,753,345) (1,097,227)
(Number) Trade debts (1,017,671) 478,686
Advances (488,170) (103,830)
Weighted average number of ordinary shares 233,115,425 233,115,425 Trade deposits and prepayments (1,318) 9,988
outstanding during the year*
Other receivables 12,274 (4,175)
(Rupees)
Sales tax refundable 90,076 (90,076)
Earnings per share 8.43 5.43 (3,175,865) (817,689)
Increase / (decrease) in current liabilities
Trade and other payables 1,369,182 712,268
* weighted average number of ordinary shares outstanding during the comparative year has been Contract liability (55,019) 66,064
adjusted for issuance of bonus shares. 1,314,164 778,332
33.2 A diluted earnings per share has not been presented as the Company did not have any convertible
instruments in issue as at balance sheet date which would have any effect on the earnings per share if the 1,567,494 2,572,601
option to convert is exercised.
34. CASH GENERATED FROM OPERATIONS 35. CASH AND CASH EQUIVALENTS
2022 2021
(Rupees in thousand) Note 2022 2021
Cash and bank balances 712,989 2,610,576
Adjustments for non-cash charges and other items Running finance (3,019,883) (2,190,795)
23.1 & 23.3
Depreciation 608,927 536,924
(2,306,894) 419,781
Amortisation 23,458 31,913
Depreciation - ROUA 10,176 -
Profit on disposal of property, plant and equipment (44,050) (40,277) 36. REMUNERATION TO CHIEF EXECUTIVE OFFICER, DIRECTORS AND EXECUTIVES
Amortisation of government grant (27,429) (46,977)
Provision for slow moving stock 69,782 195,571 36.1 The aggregate amounts charged in these financial statements in respect of remuneration including all benefits to
Impairment loss on long term investment 15,784 - chief executive, directors and executives of the Company are as follows:
Impairment loss on trade debts 11,761 4,851
Gain on remeasurement of investment at FVTPL - (1,199)
Interest expense - ROUA 1,509 -
Finance costs 180,309 136,020
Retirement benefits expense (2,279) 81,260
847,948 898,086
Profit before working capital changes 3,429,195 2,611,958


Chief Executive Officer Directors Executives Transaction with related parties other than those disclosed else where in the notes are disclosed below:
2022 2021 2022 2021 2022 2021
(Rupees in thousand) Relationship with
Nature of transaction 2022 2021
the Company
Managerial remuneration (Rupees in thousand)
and allowances 39,127 34,405 - - 472,457 364,264
Utilities 3,913 3,441 - - 43,067 36,426 Holding Company Rental income 3,074 3,638
Bonus / variable pay 47,020 41,381 - - 197,912 190,530 Rental paid 3,026 -
Housing 17,607 15,482 - - 193,805 163,919 Dividend paid 313,247 250,398
Retirement benefits 3,913 3,441 - - 40,441 35,677
Meeting fee - - 6,250 3,500 - - (No of Shares)
Other expenses 3,965 849 205 3,689 293,271 188,109 Bonus Shares issued 15,662,363 12,519,890
115,545 98,999 6,455 7,189 1,240,953 978,925
Number of persons 1 1 6 6 143 120 Subsidiary Company Sale of goods 2,220,238 1,960,359
Associates Purchases 168,619 -

36.2 The Chief Executive, two non-executive directors and certain executives of the Company are also provided
with Company maintained cars, residence and mobile telephones. Dividend paid 188,911 137,027
Annual subscription 2,000 2,000
37. RELATED PARTY DISCLOSURES
(No of Shares)
Related parties comprise the Holding Company, subsidiaries (direct and indirect), key management personnel, Bonus Shares issued 9,445,560 6,851,000
staff retirement funds, directors, major shareholders and key management personnel.
Key management personnel are those persons having authority and responsibility for planning, directing and
Staff retirement funds Expense charged for the year 78,070 64,414
controlling the activities of the Company. The Company considers its Chief Executive Officer, Chief Financial
Payments to retirement
Officer, Company Secretary, Non-Executive Directors and Departmental Heads to be its key management
contribution plan 73,107 112,510
personnel. Transactions with key management personnel are in accordance with their terms of employment /
Contribution to defined
entitlement. Contribution charged for retirement benefit plan are in accordance with the terms of the service
benefit plans 15,621 87,100
rules / trust deed and actuarial valuation as relevant. Other transactions are in accordance with the agreed
terms.
Key management personnel compensation:
Salaries and other short-term employee benefits 700,117 609,845
Contribution to Provident Fund 36,600 34,390
Retirement benefits 4,062 18,743
37.1 Outstanding balances of related parties as at year end have been included in trade debts, other receivables,
trade and other payables and deferred assets. These are settled in ordinary course of business.


37.2 The following are the related parties with whom the Company had entered into transaction during the year: 40.1 Credit risk
Name of the Related Party Basis of association Aggregate % Credit risk represents the financial loss that would be recognised at the reporting date if
of Shareholding counterparties failed to perform as contracted. The financial assets exposed to the credit risk
ATC Holdings (Private) Limited (formerly) amount to Rs. 4 billion (2021: Rs. 4.6 billion) appropriately.
Associated Textile Consultants (Private) Limited) Holding Company* (holding in the company) 33.85% The Companys maximum exposure to credit risk as at the reporting date is as follows
National Foods Dubai Multi Commodities Centre Subsidiary Company (holding by the company) 100%
2022 2021
Pakistan Business Council Associate due to common directorship
0% (Rupees in thousand)
(no holding in the company)
Cherat Packaging Limited Associate due to common directorship Financial assets:
0% Deposits 54,980 56,956
(no holding in the company)
Trade debts 1,948,605 942,695
Short term investments at FVTPL 1,324,795 1,001,199
*It is the ultimate parent company based on control model as provided under IFRS 10. Bank balances 710,759 2,608,702
4,039,139 4,609,552
38. PLANT CAPACITY AND PRODUCTION
2022 2021
(Metric tons) The following table provides information about the exposure to credit risk for trade debts from individual
customers as at June 30, 2022:
Actual production of plants 108,104 105,071 Gross Expected Net
carrying credit carrying
amount loss amount
The capacity and production of the Company's plants are indeterminable as these are multi-product and
involve varying processes of manufacture. (Rupees in thousand)
30 June 2022
39. NUMBER OF EMPLOYEES Current (not past due) 1,134,641 21,050 1,113,591
1–30 days past due 727,105 13,489 713,615
2022 2021 31–60 days past due 82,470 1,530 80,940
61-180 days past due 2,348 44 2,304
The details of number of employees are as follows: (Number)
180-360 days past due 26,701 495 26,206
More than 360 days past due 12,174 226 11,948
Total employees of the Company at the year end 850 788 1,985,439 36,834 1,948,605
Average employees of the Company during the year 819 755
30 June 2021
Current (not past due) 138,610 3,687 134,923
40. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES 1–30 days past due 367,819 9,116 358,703
The Board of Directors of the Company has overall responsibility for the establishment and 31–60 days past due 337,077 8,965 328,112
oversight of the Company's risk management framework. The Company's activities expose it to 61-180 days past due 113,840 3,028 110,812
variety of financial risks namely credit risk, liquidity risk and market risk (including foreign exchange 180-360 days past due 1,003 27 976
risk and interest rate risk). The Company's overall risk management programme focuses on having More than 360 days past due 9,418 250 9,168
cost effective funding as well as managing financial risk to minimise earnings volatility and provide 967,767 25,073 942,695
maximum return to shareholders.


Based on the past experience, consideration of financial position, past track records and recoveries, the Company 2022
believes that the impairment on trade debts past have been adequately accounted for in these financial statements. Contractual Cashflows
Total
The bank balances and investments in mutual funds represent low credit risk as major balances are placed at Carrying Within one More than
Contractual
amount year one year
banks and funds having credit ratings of A1+ & A+ as assigned by PACRA or JCR-VIS. Cash flows
Other financial assets are neither material to the financial statements nor exposed to any significant credit risk. Non-derivative
The management does not expect any losses from non-performance by these counterparties. Financial Liabilities
Long-term borrowings 670,154 978,176 581,432 396,744
Concentration of credit risk Trade and other payables 4,984,571 4,984,571 4,984,571 -
Lease liabilities 32,425 36,424 18,229 18,195
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in Short-term borrowings (including -
the same geographical region, or have economic features that would cause their ability to meet contractual accrued markup) 4,349,955 4,349,955 4,349,955
obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate Unclaimed dividend 23,161 23,161 23,161 -
the relative sensitivity of the Company’s performance to developments affecting a particular industry. In order 10,060,266 10,372,287 9,957,348 414,939
to avoid excessive concentrations of risk, management focuses on the maintenance of a diversified
portfolio.Identified concentrations of credit risks are controlled and managed accordingly. Management does not
consider that it has any concentration of credit risk at reporting date. Following are the details: 2021
Contractual Cashflows
Total
Carrying Within one More than
Contractual
amount year one year
Cash flows
2022 2021
(Rupees in thousand) Non-derivative
Trade debts Financial Liabilities
- Distributors 892,180 290,017 Long-term borrowings 1,199,952 1,227,310 529,798 697,512
- Departmental stores 400,732 156,223 Trade and other payables 3,847,406 3,847,406 3,847,406 -
- Related party 655,692 496,455 Lease liabilities - - - -
Banks 710,759 2,608,702 Short-term borrowings (including
Mutual funds 1,324,795 1,001,199 accrued markup) 2,796,585 2,796,585 2,796,585 -
Utilities 54,980 56,956 Unclaimed dividend 21,202 21,202 21,202 -
4,039,139 4,609,552 7,865,145 7,892,503 7,194,991 697,512
40.3 Market Risk
40.2 LIQUIDITY RISK Foreign exchange risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its Foreign exchange risk arises mainly where receivables and payables exist in foreign currency. As at 30 June
financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk reflects the Company's 2022 net financial assets of Rs. 1.35 billion (2021: Rs. 915.79 million) were denominated in foreign currency
inability in raising funds to meet commitments. The Company manages liquidity risk by maintaining sufficient whichwere exposed to foreign currency risk.
cash and bank balances and the availability of financing through banking arrangements. Management monitors
rolling forecasts of the Company’s liquidity reserve which comprises of undrawn borrowing facility and cash and As at 30 June 2022 if the Pak Rupee had strengthened by %5 against US Dollar with all other variables held constant,
cash equivalents on the basis of expected cash flows. profit before tax for the year would have been lower / higher by Rs. 67.96 million (2021: Rs. 45.79 million).


The sensitivity of foreign exchange rate looks at the outstanding foreign exchange balances of the Company Details of the financial instruments, exposed to interest rate risk, based on the earlier of re-pricing or contractual
only as at the balance sheet date. maturity dates are as follows:
2022 Exposure to Interest / Mark up rate risk
(Rupees in (AED in (CNY in (Euro in (GBP in (SAR in (USD in (AUD in
thousand) thousand) thousand) thousand) thousand) thousand) thousand) thousand) Upto 1 Upto 3 More than
Total
Trade debts 655,692 - - - - - 3,200.84 - month Months 3 Months
Bank balance 703,507 - - - - - 3,424.58 - Financial assets
Bank balances 6,575 - - 6,575
Trade liabilities (21,174) (2.06) (66.07) (25.51) (0.22) (0.11) (51.46) (20.56)
1,338,025 (2.06) (66.07) (25.51) (0.22) (0.11) 6,573.96 (20.56) 30 June 2022 6,575 - - 6,575
30 June 2021 3,209 - - 3,209
Financial liabilities
2021 Long term finance - 670,154 - 670,154
(Rupees in (AED in (CNY in (Euro in (GBP in (SAR in (USD in (AUD in - 4,467 27,958 32,425
thousand) thousand) thousand) thousand) thousand) thousand) thousand) thousand) Lease liabilities
Short term borrowings 4,269,883 - - 4,269,883
Trade debts 496,456 - - - - - 3,179.15 -
30 June 2022 4,269,883 674,621 27,958 4,972,462
Bank balance 3,209 - - - - - 2,685.31 -
30 June 2021 2,790,795 699,619 - 3,490,414
Trade liabilities (39,001) (2.70) (82.94) (144.94) (0.26) (0.14) (249.74) -
460,664 (2.70) (82.94) (144.94) (0.26) (0.14) 5,614.72 2,661.93
Details of interest / markup rates are disclosed in the respective notes
The following significant exchange rates were applied during the year:
41. RECONCILIATION OF MOVEMENTS OF LIABILITIES TO CASH FLOWS ARISING FROM
2022
FINANCING ACTIVITIES
Average rate Reporting date rate 2022
Short term Other short Long term
Rupees / USD 177.78 204.85 borrowings term borrowings borrowings
Lease Retained
used for cash including (including Total
Rupees / CNY 27.48 30.54 liability earnings
management related accrued related accrued
purpose markup markup)
2021 (Rupees in thousand)
Average rate Reporting date rate
Balance as at 1 July 2021 2,190,795 600,000 1,229,418 - 4,543,794 8,564,007
Rupees / USD 160.02 156.16
Changes from financing cash flows
Rupees / CNY 24.18 24.33
Repayment of loan - - (529,799) - - (529,799)
Proceeds from long term loan - - - - - -
Lease rental paid - - - (9,648) (9,648)
Interest rate risk
Proceeds from short term borrowings - 650,000 - - - 650,000
Dividend paid - - - - (930,503) (930,503)
At 30 June 2022 the Company had variable interest bearing financial liabilities of Rs. 3,846.5 million (2021: Rs. Total changes from financing activities - 650,000 (529,799) (9,648) (930,503) (819,950)
2,660.7 million), had the interest rates varied by 100 basis points (2021: 100 basis points) with all the other
variables held constant, profit before tax for the year would have been lower / higher by approximately Rs. 38.4 Other changes - interest cost
million (2021: Rs. 26.6 million), mainly as a result of higher / lower interest expense on floating rate borrowings. Interest expense 66,655 44,643 50,965 1,509 - 163,772
Interest paid (66,655) (44,643) (50,965) - - (162,263)
Additions in lease liabilities - - - 40,564 - 40,564
Amortisation of government grant - - (27,429) - - (27,429)
Changes in running finance 829,088 - - 829,088
Total loan related other changes 829,088 - (27,429) 42,073 - 843,732
Total equity related other changes - - - - 1,732,243 1,732,243
Balance as at 30 June 2022 3,019,883 1,250,000 672,190 32,425 5,345,534 10,320,033


41.1 Capital risk management - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date (level 1).
The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going
concern in order to provide returns for shareholders and benefit for other stakeholders and to maintain an optimal - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
capital structure to reduce the cost of capital. During the year, the Company's strategy was to maintain leveraged directly or indirectly (level 2).
gearing. The gearing ratio as at 30 June 2022 was as follows:
- Unobservable inputs for the asset or liability (level 3)
2022 2021
(Rupees in thousand) The following table shows the carrying amounts and fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy..
Total borrowings 5,022,146 4,029,351
Cash and bank balances (712,989) (2,698,926) 2022
Net debt 4,309,157 1,330,425
Carrying amount Fair value
Total Equity 6,509,151 5,476,255
Assets at Other
Total capital 10,818,308 6,806,680
Amortised Fair Value Financial Level 1 Level 2 Level 3
Gearing ratio 40% 20% cost Liabilities
Rupees
Financial assets not measured
The Company finances its operations through equity, borrowings and management of working capital with a view at fair value
to maintain an appropriate mix between various sources of finance to minimise risk. Deposits 54,980 - - - - -
Trade debts 1,948,605 - - - - -
Bank balances 710,759 - - - - -
41.2 Fair values of financial assets and liabilities
Financial assets measured
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction at fair value
between market participants at the measurement date. Short-term investments at FVTPL - 1,324,795 - - 1,324,795 -
Underlying the definition of fair value is the presumption that the Company is a going concern without any Financial liabilities not
measured at fair value
intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse
Long term borrowings - - 670,154 - - -
terms.
Trade and other payables - - 4,984,571 - - -
Short-term borrowings - - 4,269,883 - - -
The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the
Lease liabilities - - 32,425 - - -
quoted market prices at the close of trading on the period end date. The quoted market prices used for financial
Mark-up accrued on bank Borrowings - - 80,072 - - -
assets held by the Company is current bid price.
2,659,364 1,324,795 10,037,105 - 1,324,795 -
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available
from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm’s length basis.
IFRS 13, 'Fair Value Measurements' requires the Company to classify fair value measurements using a fair value
hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy
has the following levels:


2021 43. EVENTS OCCURRING AFTER BALANCE SHEET DATE

Carrying amount Fair value
Assets at Liabilities at The Board of Directors of the Company in their meeting held on 8 September, 2022 has proposed a finaldividend
Amortised Fair Value Amortised Level 1 Level 2 Level 3 of Rs. 5 per share (2021: Rs. 5 per share) amounting to Rs. 1,165.58 million (2021 : 932.5 million) and bonus issue
cost cost of Nil shares (2021 : 1 share for each 4 shares) for the year ended 30 June 2022. The approval of the shareholders
Rupees of the Company for the dividend shall be obtained at the upcoming Annual General Meeting for the year ended
Financial assets not measured 30 June 2022. The financial statements for the year ended 30 June 2022, do not include the effect of the
at fair value proposed final cash dividend which will be accounted for in the year ending 30 June 2023.
Deposits 56,956 - - - - -
Trade debts 942,695 - - - - -
Bank balances 2,608,702 - - - - -
44. DATE OF AUTHORISATION
Financial assets measured
at fair value These financial statements were authorised for issue by the Board of Directors of the Company on 8 September, 2022.
Short-term investments at FVTPL - 1,001,199 - - 1,001,199 -
Financial liabilities not

measured at fair value
Long term borrowings - - 1,199,952 - - -
Trade and other payables - - 3,847,406 - - -
Short-term borrowings - - 2,796,585 - - -
Mark-up accrued on bank Borrowings - - 9,138 - - -
3,608,353 1,001,199 7,853,081 - 1,001,199 -
Chief Executive Officer Chief Financial Officer Director

41.2.1 The Company has not disclosed the fair values of the above financial assets and financial liabilities, as these
are either short term in nature or repriced, periodically. Therefore, carrying amounts of financial instruments
carried at amortised cost are reasonable approximation of their fair values.
42. CORRESPONDING FIGURES

Comparative information has been re-arranged or additionally incorporated in these financial statements
wherever necessary to facilitate comparison and better presentation. Major reclassifications are as under:
Reclassification of deposits from long term to short term 14,236

Reclassification of provisions from current accrued liabilities to long term 22,460
Above reclassification has been made for a better comparison.

We Enrich Our Systems
for Better Outcomes
Consolidated Financial Statements 2022
Report on the Audit of the Consolidated Financial Statements
Opinion Following are the Key audit matters:
S.No Key audit matters How the matters were addressed in our audit
We have audited the annexed consolidated financial statements of National Foods Limited and its subsidiaries (the
Group), which comprise the consolidated statement of financial position as at 30 June 2022, and the consolidated 1. Valuation of Trade debts Our audit procedures to assess the valuation of debtors,
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity, the among others involved the following:
consolidated statement of cash flows for the year then ended and notes to the consolidated financial statements, Refer notes 4.8.1, 4.12.1, and 10 to the Group’s
including a summary of significant accounting policies and other explanatory information. consolidated financial statements. - obtaining an understanding of management’s basis
for the determination of loss allowance required at
The Group has a significant balance of trade the year-end;
In our opinion, consolidated financial statements give a true and fair view of the consolidated financial position of the
debts. Provision against doubtful debts is based
Group as at 30 June 2022, and of its consolidated financial performance and its consolidated cash flows for the year on loss allowance for Expected Credit Loss (ECL). - assessing the method used by the Group for recognition
then ended in accordance with the accounting and reporting standards as applicable in Pakistan. of the allowance against the doubtful debts in
We identified valuation of trade debts as a key audit accordance with the applicable standard and
Basis for Opinion matter as it involves significant judgment in assessing the reasonableness of assumptions
determining the recoverable amount of trade debts. used; and
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. - testing the accuracy of the data on a sample basis
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the extracted from the Group’s accounting system
Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the which has been used to calculate the provision
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted by the required including subsequent recoveries.
Institute of Chartered Accountants of Pakistan (the Code), and we have fulfilled our other ethical responsibilities in
We issued instructions to auditors of the components,
accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to
highlighting “Valuation of Trade debtors” as a significant
provide a basis for our opinion. risk. The auditors of those components performed audit
procedures to respond to the significant risk and reported
Key Audit Matters the results thereof to us. We, as auditors of thr Group, also
evaluated the work performed by the component auditors
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the through their files review and discussions with them.
consolidated financial statements of the current period. These matters were addressed in the context of our audit of
the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate 2 Valuation of Stock-in-trade Our audit procedures to assess the valuation of
opinion on these matters. stock-in-trade, amongst others, included the following:
Refer notes 4.11 and 9 to the consolidated
financial statements. - obtaining an understanding of and assessing the design
and testing the implementation of management’s controls
Stock-in-trade forms a significant part of the designed to identify obsolete and slow-moving items;
Group’s total assets. Stock-in-trade comprise
of raw material, work in process and finished - checking the NRV calculations on a sample basis by
good which are stated at lower of cost and comparing the cost with a subsequent selling price less
estimated net realizable value (NRV). cost to the sale; and
We identified the valuation of stock-in-trade as - checking the working on a sample basis specific
a key audit matter because determining an provision for obsolete and slow-moving stocks-in-trade.
appropriate write-down as a result of net
realizable value (NRV) being lower than their We issued instructions to auditors of the components,
cost and provisions for expired and obsolete highlighting “Valuation of Stock-in-trade” as a significant
inventories involves significant management risk. The auditors of those components performed audit
judgment and estimation. procedures to respond to the significant risk and reported
the results thereof to us. We, as auditors of thr Group, also
evaluated the work performed by the component auditors
through their files review and discussions with them.
242 | Consolidated Financial Statements 2022 Annual Report 2022 | 243

Information Other than the Financial Statements and Auditor’s Report Thereon • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
Management is responsible for the other information. The other information comprises the information included in the
Annual Report for the year ended 30 June 2022 but does not include the review report on the Statement of • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
Compliance contained in Listed Companies (Code of Corporate Governance) Regulations, 2019, consolidated and the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
unconsolidated financial statements and our auditor’s report thereon. significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated
Our opinion on the consolidated financial statements does not cover the other information and we do not express any financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
form of assurance conclusion thereon. the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
In connection with our audit of the consolidated financial statements, our responsibility is to read the Other
Information and, in doing so, consider whether the Other Information is materially inconsistent with the consolidated • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based disclosures, and whether the consolidated financial statements represent the underlying transactions and events
on the work we have performed, we conclude that there is a material misstatement of this Other Information, we are in a manner that achieves fair presentation.
required to report that fact. We have nothing to report in this regard.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
Responsibilities of Management and Board of Directors for the Consolidated Financial Statements within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
Management is responsible for the preparation and fair presentation of the consolidated financial statements in
accordance with accounting and reporting standards as applicable in Pakistan and Companies Act, 2017 and for such We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit
internal control as management determines is necessary to enable the preparation of consolidated financial and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
statements that are free from material misstatement, whether due to fraud or error.
We also provide the Board of Directors with a statement that we have complied with relevant ethical requirements
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to regarding independence, and to communicate with them all relationships and other matters that may reasonably be
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern thought to bear on our independence, and where applicable, related safeguards.
basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so. From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore the key audit
The Board of Directors is responsible for overseeing the Group’s financial reporting process. matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our The engagement partner on the audit resulting in this independent auditor’s report is Amyn Pirani.
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs as applicable in Pakistan will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are Date: September 23, 2022
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Karachi KPMG Taseer Hadi & Co.
Group’s internal control. UDIN: AR2022102015q1RglZbF Chartered Accountants

Consolidated Statement of Consolidated Statement of
Changes in Equity Cash Flows

Attributable to shareholders of the Parent Company
Revenue Reserve Note 2022 2021

Non
Share Total
Retained Sub-total controlling
capital Foreign exhcange
interest
Equity (Rupees in thousand)
earnings translation reserve
CASH FLOWS FROM OPERATING ACTIVITIES
Balance as at 1 July 2020 745,969 4,843,618 (51,502) 5,538,085 525,431 6,063,516 Cash generated from operations 35 2,582,740 3,462,577
Finance cost paid (392,876) (320,124)
ended 30 June 2021 Income tax paid (722,146) (460,272)
Retirement benefits obligations paid (15,621) (154,587)
Profit for the year - 1,758,588 - 1,758,588 216,086 1,974,674 Long-term deposits (5,677) (1,144)
Other comprehensive income - 33,375 54,258 87,633 7,351 94,984
Net cash flows from operating activities 1,446,420 2,526,450
- 1,791,963 54,258 1,846,221 223,437 2,069,658
Transaction with owners in their capacity
as owners directly recorded in equity CASH FLOWS FROM INVESTING ACTIVITIES
Final cash dividend for the year ended - (745,969) - (745,969) - (745,969)
Purchase of property, plant and equipment (3,113,174) (873,205)
30 June 2020 @ Rs. 5 per Ordinary share
Proceeds from disposal of property, plant and equipment 111,224 65,516
Dividend paid to NCI - - - - (113,765) (113,765) Purchase of intangible assets (32,311) (51,842)
Purchase of short term investment - Net (323,596) (1,000,000)
1 Ordinary shares for each 4 shares
held allotted as bonus shares for the Net cash flows from investing activities (3,357,857) (1,859,531)
year ended 30 June 2020 186,492 (186,492) - - - -
CASH FLOWS FROM FINANCING ACTIVITIES
Balance as at 30 June 2021 932,461 5,703,120 2,756 6,638,337 635,103 7,273,440
Balance as at 1 July 2021 932,461 5,703,120 2,756 6,638,337 635,103 7,273,440 Proceeds from long-term finance - net (576,323) (6,425)
Proceeds from short-term borrowings-net 1,107,483 169,733
Total comprehensive income for the year Repayment of lease liabilities (294,494) (148,149)
ended 30 June 2022
Dividend paid (1,036,422) (860,323)
Profit for the year - 2,424,148 - 2,424,148 292,928 2,717,076 Net cash flows from financing activities (799,755) (845,164)
Other comprehensive income - 280 574,665 574,945 (14,550) 560,395
- 2,424,427 574,665 2,999,093 278,378 3,277,471 Net decrease in cash and cash equivalents (2,711,192) (178,245)
Transaction with owners in their capacity
as owners directly recorded in equity
Cash and cash equivalents at beginning of the year 851,678 1,196,143
Final cash dividend for the year ended Currency translation difference on cash and cash equivalents (30,717) (166,220)
30 June 2021 @ Rs. 5 per Ordinary share - (932,462) - (932,462) - (932,462) Cash and cash equivalents at end of the year 36 (1,890,231) 851,678
Dividend paid to NCI - - - - (145,709) (145,709)
1 Ordinary share for each 4 Ordinary shares

held - allotted as bonus shares for the year
ended 30 June 2021 233,115 (233,115) - - - -
Balance as at 30 June 2022 1,165,576 6,961,970 577,422 8,704,968 767,772 9,472,740
The annexed notes 1 to 44 form an integral part of these consolidated financial statements. The annexed notes 1 to 44 form an integral part of these consolidated financial statements.

Notes to the Consolidated Notes to the Consolidated

1. THE GROUP AND ITS OPERATIONS A-1 Bags & Supplies Inc.
1.1 The group consists of:

A 1 Bags & Supplies Inc. was incorporated under the Business Corporations Act of Ontario on March 14,
i) Parent Company - National Foods Limited 2001. National Epicure Inc. acquired 60% parent in A-1 Bags and Supplies Inc. in the year 2017 and is
ii) Subsidiary Company - National Foods DMCC, Dubai, United Arab Emirates. principally engaged in distribution and wholesale of food products, disposables, janitorial and sanitation products.
National Foods Limited National Epicure USA Inc.
National Foods Limited ("Parent Company") was incorporated in Pakistan on February 19, 1970 as a private National Epicure USA Inc. was incorporated in USA on 1 December 2021 under the General Corporation Law
limited company under the Companies Act, 1913 and subsequently converted into a public limited company of the State of Delaware, USA with an authorized share capital of 500 shares with a par value of $0.0001
under the repealed Companies Ordinance, 1984 (now Companies Act, 2017) by special resolution passed in per share. Shares have not yet been issued by this entity and has not commenced its operations. The
the extra ordinary general meeting held on 30 March 1988. The Parent Company is principally engaged in the company is a subsidiary of National Foods DMCC.
manufacture and sale of convenience based food products. The Company is listed on Pakistan Stock Exchange.
The registered office of the Parent Company is situated at 12 / CL - 6, Claremont Road, Civil Lines, Karachi. 1.4 The manufacturing facilities and sales offices of the Group companies are situated at the following l ocations:
Factories:
1.2 The ultimate parent entity of the National Foods Limited is ATC Holdings (Private) Limited based on control model
- Unit F-160/ C, F- 133, S.I.T.E., Karachi;
as provided under IFRS 10 - 'Consolidated Financial Statements'.
- Office A-13, North Western Industrial Zone, Bin Qasim, Karachi;
- 53-KM G.T. Road, Chainwala Mord Amanabad, Gujranwala;
1.3 Details of the susidiary companies are as follows: - A-393, Nooriabad Industrial Estate, Nooriabad; and
- Plot No. 346 & 347 Phase - 2, M-3 Industrial City, Faisalabad. (Not Operational)
National Foods DMCC
Sales offices:
The Parent Company has a wholly owned (100%) subsidiary which was set up in United Arab Emirates in
- Office No.107, 1st Floor Parsa Tower Sharah-e-Faisal, Karachi.
2012 and is carried at cost. The subsidiary was formed as a limited liability company and commenced
operations from March 2013. National Foods DMCC (NF DMCC) was registered on 7 November 2012 in Dubai - Banglow No. 225, Shahrah-e-Abbasi Akhuwat Nagar Society, Sukkur.
Multi Commodities Centre (“DMCC”) pursuant to Dubai (DMCC) Law No. 4 of 2001 and operates in the United - 2nd Floor Mall 2 Plaza Main Boulevard Kohinoor City Jaranwala Road, Faisalabad.
Arab Emirates (“UAE”) under a trade license issued by DMCC. The registered address of the Company is Unit - 18-CCA (Commercial Area) Phase V111 DHA Lahore, Cantt.
No. R30-26, Floor No. 30, R Serviced Offices JLT, Reef Tower, Plot No. 01 Jumeirah Lakes Towers Dubai, - Plot # 25 Din Plaza Canal Road Main Gate Canal View Housing Society, Gujranwala.
United Arab Emirates. - 1st Floor Bilal Complex Main PWD Road sector O-9, Islamabad.
- Unit No. R30-26, Floor No. 30, R Serviced Offices JLT, Reef Tower, Plot No. 01 Jumeirah Lakes
The primary objective of NF DMCC is to boost export sales of its parent company through trading in food stuff Towers Dubai, United Arab Emirates.
and other services. NF DMCC also has following two wholly owned direct subsidiaries, one indirect subsidiary - 193 Maxome Avenue, Toronto, Ontario, Canada.
and one newly incorporated group Company as follows: - 27 Second Floor, Gloucester Place, London, United Kingdom.
- 6400 Kennedy Road, Mississauga, Ontario
National Foods Pakistan (UK) Limited
- 1110 Dearness Dr, Toronto, Ontario
National Foods Pakistan (UK) Limited was incorporated in United Kingdom on 29 May 2013 as a private company
2. BASIS OF PREPARATION
under the UK Companies Act, 2006. The company is a wholly owned subsidiary of National Foods DMCC and
will be principally engaged in the trading of food products, although currently it is not operational. 2.1 Statement of compliance
National Epicure Inc. These consolidated financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan. The accounting and reporting standards as applicable in Pakistan comprise of:
National Epicure Inc. ("NEI") was incorporated in Canada on 16 October 2013 under the Canada Business
Corporations Act. NEI is a wholly owned subsidiary of National Foods DMCC. NEI is the parent company of - International Financial Reporting Standards (IFRS Standards) issued by the International Accounting
A-1 Bags & Supplies Inc. as mentioned below. Standards Board (IASB) as notified under the Companies Act, 2017;


- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan 3. ACCOUNTING STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED APPROVED
as are notified under the Companies Act, 2017; and ACCOUNTING STANDARDS
- Provisions of and directives issued under the Companies Act, 2017 . 3.1 Standards, interpretations and amendments to published approved accounting standards
that are effective but not relevant:
Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS Standards
or IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed. There are certain new standards, amendments to the approved accounting standards and new interpretations
that are mandatory for accounting periods beginning on or after 1 July 2021. However, these do not have any
significant impact on the Group's financial reporting and therefore have not been detailed in these
2.2 Basis of measurement consolidated financial statements.
These consolidated financial statements have been prepared under the historical cost convention except as
stated otherwise. 3.2 Standards, interpretations and amendments to published approved accounting standards
that are not yet effective:
2.3 Functional and presentation currency
These consolidated financial statements are presented in Pakistan Rupees which is also the Group's functional The following International Financial Reporting Standards (IFRS Standards) as notified under the Companies
currency. All financial information presented in Pakistan Rupees has been rounded to the nearest thousand Act, 2017 and the amendments and interpretations thereto will be effective for accounting periods beginning
of rupees, unless stated otherwise. on or after 1 July 2022, however these are not expected to have any significant impact on the Group's financial
reporting based on the current balances:
2.4 Use of significant estimates and judgments
The preparation of these consolidated financial statements is in conformity with approved accounting - Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) effective for the annual periods
standards, as applicable in Pakistan, requires management to make judgments, estimates and assumptions beginning on or after 1 January 2022 clarifies that the 'cost of fulfilling a contract' for the purposes of the
that affect the application of policies and the reported amounts of assets, liabilities, income and expenses. onerous contract assessment comprises the costs that relate directly to the contract, including both the
The estimates and associated assumptions are based on historical experience and various other factors incremental costs and an allocation of other direct costs to fulfil the contract. An entity is required to
that are believed to be reasonable under the circumstances, the results of which form the basis of making apply the amendments to contracts for which it has not yet fulfilled all its obligations at the beginning of
the judgments about the carrying values of assets and liabilities that are not readily apparent from other the annual reporting period in which it first applies the amendments (the date of initial application).
sources. Actual results may differ from these estimates. The estimates and underlying assumptions are Restatement of comparative information is not required, instead the amendments require an entity to
reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the recognize the cumulative effect of initially applying the amendments as an adjustment to the opening
estimate is revised if the revision affects only that period, or in the period of the revision and future periods balance of retained earnings or other component of equity, as appropriate, at the date of initial application.
if the revision affects both current and future periods. Judgments made by the management in the
application of approved accounting standards, as applicable in Pakistan, that have significant effect on the - The following annual improvements to IFRS Standards 2018-2020 are effective for annual reporting
consolidated financial statements and estimates with significant risk of material adjustment in the next year periods beginning on or after 1 January 2022:
are described in the following:
IFRS 9 – The amendment clarifies that an entity includes only fees paid or received between the entity (the
Note borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s
Property, plant and equipment 4.3 behalf, when it applies the ‘10 per cent’ test in paragraph B3.3.6 of IFRS 9 in assessing whether to
derecognize a financial liability.
Intangible assets and Goodwill 4.5
Stores, spares and loose tools 4.11
Stock-in-trade 4.12 IFRS 16 – The amendment partially amends Illustrative Example 13 accompanying IFRS 16 by excluding the
Trade debts and other receivables 4.13.1 llustration of reimbursement of leasehold improvements by the lessor. The objective of the amendment is to
Provision for refund liability 4.17 resolve any potential confusion that might arise in lease incentives.
Retirement benefits obligations 4.1
Taxation 4.9 IAS 41 – The amendment removes the requirement in paragraph 22 of IAS 41 for entities to exclude taxation
cash flows when measuring the fair value of a biological asset using a present value technique. This amendment
Investment at fair value through profit or loss (FVTPL) 4.8
enables the fair value measurement of biological assets on a post-tax basis.
Leases 4.6


- Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) effective for - Definition of Accounting Estimates (Amendments to IAS 8) introduce a new definition for accounting
annual periods beginning on or after 1 January 2022 clarifies that sales proceeds and costs of items estimates clarifying that they are monetary amounts in the financial statements that are subject to
produced while bringing an item of property, plant and equipment to the location and condition measurement uncertainty. The amendments also clarify the relationship between accounting policies
necessary for it to be capable of operating in the manner intended by management e.g. when testing and accounting estimates by specifying that an entity develops an accounting estimate to achieve the
etc., are recognized in profit or loss in accordance with applicable Standards. The entity measures the objective set out by an accounting policy. The amendments are effective for periods beginning on or
cost of those items applying the measurement requirements of IAS 2. The standard also removes the after 1 January 2023, with earlier application permitted, and will apply prospectively to changes in
requirement of deducting the net sales proceeds from cost of testing. An entity shall apply those accounting estimates and changes in accounting policies occurring on or after the beginning of the first
amendments retrospectively, but only to items of property, plant and equipment that are brought to the annual reporting period in which the company applies the amendments.
location and condition necessary for them to be capable of operating in the manner intended by
management on or after the beginning of the earliest period presented in the financial statements in - Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
which the entity first applies the amendments. The entity shall recognize the cumulative effect of narrow the scope of the initial recognition exemption (IRE) so that it does not apply to transactions that
initially applying the amendments as an adjustment to the opening balance of retained earnings (or other give rise to equal and offsetting temporary differences. As a result, companies will need to recognize a
component of equity, as appropriate) at the beginning of that earliest period presented. deferred tax asset and a deferred tax liability for temporary differences arising on initial recognition of a
lease and a decommissioning provision. For leases and decommissioning liabilities, the associated
- Reference to the Conceptual Framework (Amendments to IFRS 3) - Reference to the Conceptual deferred tax assets and liabilities will need to be recognized from the beginning of the earliest
Framework, issued in May 2020, amended paragraphs 11, 14, 21, 22 and 23 of and added paragraphs comparative period presented, with any cumulative effect recognized as an adjustment to retained
21A, 21B, 21C and 23A to IFRS 3 . An entity shall apply those amendments to business combinations for earnings or other components of equity at that date. The amendments are effective for annual reporting
which the acquisition date is on or after the beginning of the first annual reporting period beginning on or periods beginning on or after 1 January 2023 with earlier application permitted.
after 1 January 2022.
- Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to
- Classification of liabilities as current or non-current (Amendments to IAS 1) apply retrospectively for the IFRS 10 and IAS 28) – The amendment amends accounting treatment on loss of control of business or
annual periods beginning on or after 1 January 2023. These amendments in the standards have been assets. The amendments also introduce new accounting for less frequent transaction that involves
added to further clarify when a liability is classified as current. Convertible debt may need to be neither cost nor full step-up of certain retained interests in assets that are not businesses. The
reclassified as ‘current’. The standard also amends the aspect of classification of liability as non-current effective date for these changes has been deferred indefinitely until the completion of a broader review.
by requiring the assessment of the entity’s right at the end of the reporting period to defer the
settlement of liability for at least twelve months after the reporting period. An entity's expectation and
discretion at the reporting date to refinance or to reschedule payments on a long-term basis are no 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
longer relevant for the classification of a liability as current or non-current. An entity shall apply those
amendments retrospectively in accordance with IAS 8. The significant accounting policies set out below has been consistently applied for all periods presented in
these consolidated financial statements.
- Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) – the Board
has issued amendments on the application of materiality to disclosure of accounting policies and to help
companies provide useful accounting policy disclosures. The key amendments to IAS 1 include: 4.1 Basis of consolidation
These consolidated financial statements consists of financial statements of the Parent Company and its
- requiring companies to disclose their material accounting policies rather than their significant accounting policies;
subsidiary companies as disclosed in note 1.1 to these consolidated financial statements (here in after
referred as Group).
- clarifying that accounting policies related to immaterial transactions, other events or conditions are
themselves immaterial and as such need not be disclosed; and
The financial statements of the Parent Company and its subsidiary companies are prepared up to the same
reporting date and are combined on a line-by-line basis.
- clarifying that not all accounting policies that relate to material transactions, other events or conditions
are themselves material to a company’s financial statements.
The Board also amended IFRS Practice Statement 2 to include guidance and two additional examples on the
application of materiality to accounting policy disclosures. The amendments are effective for annual
reporting periods beginning on or after 1 January 2023 with earlier application permitted.


4.2 Business Combination 4.3 Property, plant and equipment
The Group accounts for business combination using the acquisition method when control is transferred to Operating assets and depreciation
the Group. The consideration transferred (including contingent consideration) in the year of acquisition is
measured at fair value, as are the identifiable net assets acquired. Any goodwill acquired is not amortized but Initial recognition
tested annually for impairment. Any gain on a bargain purchase is recognized in profit or loss immediately.
The cost of an item of property, plant and equipment is recognised as an asset if it is probable that future
Transaction cost are expensed as incurred, except if related to the issue of debt or equity securities. When
economic benefits associated with the item will flow to the entity and the cost of such item can be
the initial accounting for a business combination is incomplete at the end of a reporting period, provisional
measured reliably.
amounts are used. During the measurement period, the provisional amounts are retrospectively adjusted
and additional assets and liabilities are recognized, to reflect new information obtained about the facts and Recognition of the cost in the carrying amount of an item of property, plant and equipment ceases when
circumstances that existed at the acquisition date which would have affected the measurement of the the items is in the location and condition necessary for it to be capable of operating in the manner
amounts recognized at that date, had they been known. The measurement period does not exceed twelve intended by the management.
months from the date of acquisition.
Measurement
Subsidiaries
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if
any. The cost of property, plant and equipment includes:
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to or has
rights to variable returns from its involvement with the entity and has the ability to affect those returns
(a) its purchase price including import duties, non refundable purchase taxes after deducting trade discounts
through its power over the entity generally accompanying a shareparent of more than fifty percent of the and rebates;
voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to the Group (b) any other costs directly attributable to bringing the asset to the location and condition necessary for it
and up to the date when the control ceases. to be capable of operating in the manner intended by the management; and
(c) Borrowing costs, if any.
Non-controlling interest
When parts of an item of property, plant and equipment have different useful lives, they are accounted for
Non-controlling interest is that portion of equity in a subsidiary that is not attributable, directly or indirectly, as separate items (major components) of property, plant and equipment.
to the Parent Company. Non-controlling interests are measured at their proportionate share of the
acquiree's identifiable net assets at the date of acquisition. Non-controlling interests are presented as a Subsequent expenditure (including normal repairs and maintenance)
separate item in the consolidated financial statements.
Expenditures incurred to replace a significant component of an item of property, plant and equipment is
capitalised and the asset so replaced is retired. Other subsequent expenditure is capitalised only when it is
The Group treats transactions with non-controlling interests as transactions with equity owners of the
probable that future economic benefits associated with the item will flow to the entity and the cost of the
Group. For purchases from non-controlling interests, the difference between any consideration paid and the items can be measured reliably. All other expenditures (including normal repairs and maintenance) is recognised
relevant share acquired of the carrying value of net assets of the subsidiary is recorded in the equity. in the profit or loss as an expense when it is incurred.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
equity transactions. Depreciation
Loss of control Depreciation on all items is charged on straight line method. The useful lives for depreciation are indicated in
note 5.1.
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, Depreciation on additions to property, plant and equipment is charged from the month the asset is available
and any related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. for use up to the month of disposal.
Any interest retained in the former subsidiary is measured at fair value when control is lost. Subsequently, it Depreciation methods, useful lives and residual values of each part of property, plant and equipment that is
significant in relation to the total cost of the asset are reviewed, and adjusted if appropriate, at each
is accounted for as an equity-accounted investee or as a financial asset depending on the level of influence
reporting date.
retained.
Gains and losses on disposal
Transactions eliminated at consolidation
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the
Intra-group balances and transactions, and any unrealised income and expenses (except for foreign currency proceeds from disposal with the carrying amount of the property, plant and equipment, and is recognized in
transaction gains or losses) arising from intra-group transactions, are eliminated. the profit or loss.


Capital work in progress 4.7 Cash and cash equivalents

Capital work in progress is stated at cost less impairment loss, if any and consists of expenditures incurred For the purpose of presentation in statement of cash flow, cash and cash equivalents includes cash in hand,
(including any borrowing cost, if applicable) and advances made in the course of their construction and balances with banks and short-term borrowings availed by the Group, which are repayable on demand and
installation. Transfers are made to relevant asset category as and when assets are available for intended use. form an integral part of the Group’s cash management.
4.4 Borrowing costs 4.8 Financial Instruments

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying 4.8.1 Recognition, classification and measurement - Financial Assets
asset form part of the cost of that asset and, therefore are capitalized. Other borrowing costs are
recognised as an expense. Borrowing cost are calculated based on the effective interest rate. Classification
4.5 Intangible assets and Goodwill The Company currently classifies its financial assets in the following measurement categories:
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. - fair value through profit or loss (FVTPL); and
Other intangible assets, including customer relationships that are acquired by the Group and have finite - measured at amortised cost.
useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses.
Trademark have indefinite useful life and are not amortised, therefore, these are measured at cost less any The classification depends on the entity’s business model for managing the financial assets and the
accumulated impairment losses. contractual terms of the cash flows.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the A financial asset is measured at amortised cost if it meets both of the following conditions and is not
specific asset to which it relates. designated as at fair value through profit or loss:
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values - it is held within business model whose objective is to hold assets to collect contractual cash flows; and
using the straight-line method over their estimated useful lives, and is generally recognised in profit or loss. - its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
Goodwill is not amortised. interest on principal amount outstanding.
The carrying values of intangible assets are reviewed for impairment when events or changes in A financial asset shall be measured at fair value through profit or loss unless it is measured at amortised
circumstances indicate that the carrying value may not be recoverable, if any such indication exists and cost or at FVOCI. However the Group may make an irrevocable election at initial recognition for particular
where the carrying values exceed the estimated recoverable amounts, the assets are written down to their investments in equity instruments that would otherwise be measured at FVTPL to present subsequent
recoverable amount. changes in fair value in other comprehensive income.
4.6 Leases On initial recognition, the Group may, irrevocably designate a financial asset as measured at FVTPL if doing
so eliminates or significantly reduces a measurement or recognition inconsistency ('accounting mismatch')
A contract is, or contains a lease if the contract conveys a right to control the use of an identified asset for that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them
a period of time in exchange for consideration. Right-of-use asset and lease liability are recognised at the on different bases.
lease commencement date. The right-of-use asset is initially measured at cost, and subsequently at cost
less any accumulated depreciation and impairment losses if any, and adjusted for any lease payments made Initial measurement
at or before the commencement date, plus any direct initial costs incurred. The right-of-use asset is
depreciated using the straight line method over the shorter of the lease term and the asset's useful life . The A financial asset is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are
estimated useful lives of assets are determined on the same basis as that for owned assets. In addition, the directly attributable to its acquisition. However, at initial recognition, the Company measures trade receivables at
right-of-use asset is periodically reduced for impairment losses, if any. their transaction price if the trade receivables do not contain a significant financing component.
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily Subsequent measurement
determined, the entity's incremental borrowing rate. The lease liability is subsequently increased by the
interest cost on the lease liability and decreased by lease payments made. Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and
losses, including any interest / markup or dividend income, are recognised
The Group has elected not to recognise right-of-use asset and lease liabilities of lease contracts of those in statement of profit or loss. Investments in mutual funds are carried at
having lease term equal to or less than 12 months. The lease payments associated with these leases are fair value based on net asset value ofthe fund on each balance sheet date
recognised as an expense on a straight-line basis over the lease term. and the unrealized gain / (loss) is recognized in the statement of profit or loss.


Financial assets measured at These assets are subsequently measured at amortised cost using the 4.8.4 Trade and other payables
amortised cost effective interest method. The amortised cost is reduced by impairment
losses. Interest / markup income, foreign exchange gains and losses and Trade and other payables are recognised initially at fair value plus directly attributable costs, if any, and
impairment are recognised in the statement of profit or loss. subsequently measured at amortised costs.
4.8.2 "Financial liabilities - Classification, subsequent measurement and gains and losses”
4.8.5 Offsetting
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated
FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial
financial statements only when the Group has currently legally enforceable right to set-off the recognised
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any amounts and the Group intends either to settle on a net basis or to realize the assets and to settle the
interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at liabilities simultaneously. The legally enforceable right must not be contingent on future events and must be
amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses enforceable in normal course of business and in the event of default, insolvency or winding up of the Group or
is recognised in statement of profit or loss. Any gain or loss on derecognition is also recognised in statement the counter parties.
of profit or loss.
4.9 Taxation
4.8.3 Derecognition
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the
Financial assets: extent that it relates to, or items recognised directly in equity or in other comprehensive income, in which
case the tax amounts are recognized directly in other comprehensive income or equity, as the case may be.
The Group derecognises a financial asset when:
i) Current
Current tax is the expected tax payable or receivable on the taxable income or loss for the year;
- the contractual rights to the cash flows from the financial asset expire; or calculated using tax rates enacted or substantively enacted by the end of the reporting period. The
calculation of current tax takes into account tax credit and tax rebates, if any, and is inclusive of any
adjustments to income tax payable or recoverable in respect of previous years.
- it transfers the rights to receive the contractual cash flows in a transaction in which either:
ii) Deferred
- substantially all of the risks and rewards of ownership of the financial asset are transferred; or Deferred tax is accounted for using the balance sheet liability method on all temporary differences arising
between tax base of assets and liabilities and their carrying amounts in the financial statements. Deferred tax
- the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it liability is generally recognised for all taxable temporary differences and deferred tax asset is recognised to
the extent that it is probable that future taxable profits will be available against which the deductible
does not retain control of the financial asset.
temporary differences, unused tax losses and tax credits can be utilised. Deferred tax is charged or credited
in the profit or loss (except to the extent that it relates to items recognized directly in equity or other
The Group enters into transactions whereby it transfers assets recognised in its statement of financial comprehensive income in which cases these are recognized directly in equity or other comprehensive income
position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these as the case may be).
cases, the transferred assets are not derecognised.
4.10 Employee retirement benefits
Financial liabilities:
Defined benefit plans - funded
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled, or
expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the The Group operates a funded pension scheme and post retirement medical benefit for the individuals
modified liability are substantially different, in which case a new financial liability based on the modified terms mentioned in note 8 to these financial statements. The liability recognised in the statement of financial
is recognised at fair value. position in respect of the defined benefit plans is the present value of the defined benefit obligations at the
end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated
annually by an independent actuary using the projected unit credit method. Remeasurements which comprise
On derecognition of a financial liability, the difference between the carrying amount extinguished and the
actuarial gains and losses are recognised immediately in other comprehensive income. The latest actuarial
consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss. valuation of the defined benefit plans was conducted at 30 June 2022.


The current and past-service costs and interest income / expenses are recognized immediately in the The Group assumes that the credit risk on a financial asset has increased significantly if it is more than past
statement of profit or loss. Surplus arising on the actuarial valuation is recognized to the extent these are due for a reasonable period of time. Lifetime ECLs are the ECLs that result from all possible default events
available under the applicable trust deed at the present value of economic benefits available in the form of over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from
refund or reductions in future contribution to the fund. default events that are possible within the 12 months after the reporting date (or a shorter period if the
expected life of the instrument is less than 12 months). The maximum period considered when estimating
Defined contribution plan ECLs is the maximum contractual period over which the Group is exposed to credit risk.
The Group operates an approved contributory provident fund for eligible employees. Equal monthly Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying
contributions are made, both by the Company and the employees, to the fund at the rate of 10% per annum amount of the assets.
of the basic salary.
The gross carrying amount of a financial asset is written-off when the Group has no reasonable expectations
Other long-term employee benefits - unfunded gratuity scheme of recovering of a financial asset in its entirety or a portion thereof. The Group individually makes an
assessment withrespect to the timing and amount of write-off based on whether there is a reasonable
"The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that expectation of recovery. The Group expects no significant recovery from the amount written off. However,
employees" have earned in return for their service in the current and prior periods. That benefit is discounted financial assets that are written-off could still be subject to enforcement activities in order to comply with the
to determine its present value. Remeasurements are recognised in profit or loss in the period in which they Group's procedures for recovery of amounts due.
arise. Remaining policy is the same as mentioned above for funded define benefit plan.
4.13.2 Non-financial assets
4.11 Stores, spare parts and loose tools
The carrying amount of the Group's non-financial assets are reviewed at each balance sheet date to
These are valued at weighted average cost less provision for slow moving and obsolete stores, spare parts
determine whether there is any indication of impairment loss. If such indications exist, the assets' recoverable
and loose tools, if any. Items in transit are valued at cost comprising invoice value plus other charges
amount is estimated in order to determine the extent of impairment loss, if any. Impairment losses are
incurred thereon.
recognised as expense in the statement of profit and loss.
4.12 Stock-in-trade
An impairment loss is reversed if there is a change in the estimates used to determine the recoverable
All stocks are stated at the lower of cost and estimated net realisable value. Cost is determined by weighted amount. An impairment loss is reversed only to the extent that the assets' carrying amount does not exceed
average method except for those in transit where it represents invoice value and other charges incurred the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment
thereon. Net realisable value signifies the estimated selling price in the ordinary course of business less cost loss had been recognised.
necessarily to be incurred in order to make the sale. Cost of work in process and finished goods includes direct
cost of materials, direct cost of labour and production overheads. Also the provisions and write-offs for all 4.14 Ijarah
damaged and obsolete stock in trade are made based on the specific identification of stock in trade by
management. In ijarah transactions, significant portion of the risks and rewards of ownership are retained by the lessor.
Islamic Financial Accounting Standard 2 – 'Ijarah' requires the recognition of ‘ujrah payments’ (lease rentals)
4.13 Impairment losses against ijarah financing as an expense in the profit or loss on a straight-line basis over the ijarah term.
4.13.1 Financial assets 4.15 Provisions
The Group recognises loss allowances for Expected Credit Losses (ECLs) in respect of financial assets Provisions are recognised when the Group has a present legal or constructive obligation as a result of past
measured at amortised cost. event, 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.
The Company measures loss allowances at an amount equal to lifetime Expected Credit Losses (ECLs) for
trade receivables. 4.16 Foreign currency
When determining whether the credit risk of a financial asset has increased significantly since initial 4.16.1 Foreign currency transactions
recognition and when estimating ECLs, the Group considers reasonable and supportable information that is
relevant and available without undue cost or effort. This includes both quantitative and qualitative information Transactions in foreign currencies are translated into rupees at the foreign exchange rates prevailing on the
and analysis, based on the Group's historical experience and informed credit assessment and including transaction date. Monetary assets and liabilities denominated in foreign currency are translated into rupees
forward-looking information. at the rates of exchange prevailing on the date of the statement of financial position.


4.16.2 Foreign operations 4.18 Miscellaneous income
The assets and liabilities of foreign operations are translated to Pakistani rupees at exchange rates prevailing Miscellaneous income including export rebate is recognised on receipt basis.
at the date of the statement of financial position. The income and expenses of foreign operations are
translated to Pakistani Rupees at average rates of exchange prevailing during the year.
4.19 Interest / Mark-up income / late payment by trade debtors
Goodwill arising on the acquisition of an entity by an overseas subsidiary is treated as an asset of theoverseas
subsidiary and is translated at foreign exchange rates prevailing as at the date of the statement of financial Income on Interest / Mark up income and rental income is recognised on a time proportionate basis and in case
position. of interest and mark-up at the rate of return implicit in the arrangement.
4.16.3 Translation gains and losses 4.20 Dividend income
Gains and losses arising from foreign currency translations are taken to the profit and loss account, except Dividend income is recognised when the Group's right to receive payment is established.
those arising from the translation of the net investment in foreign subsidiaries, which are recognized through
the statement of other comprehensive income as an Exchange Translation Reserve (ETR). Balances in the 4.21 Rental income
ETR are only taken to the profit and loss account on the disposal of the investment.
Rental income from properties on operating lease is recognized in profit or loss on a straight-line basis over
4.17 Revenue recognition the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income,
over the term of the lease.
Revenue is recognized when a contractual promise to a customer (performance obligation) has been fulfilled
by transferring control over the promised goods and services to the customer. It also specifies the 4.22 Segment information
accounting for the costs directly related to fulfilling a contract. Revenue from sale of goods is recognised at
the point in time when control of the product has transferred, being when the products are delivered to the Operating segments are reported in a manner consistent with the internal reporting provided to the chief
customer. Invoices are generated and revenue is recognised on delivery of goods. Delivery occurs when the operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and
products have been shipped to / or and delivered to the customer’s destination / specific location, the risks of assessing performance of the operating segments, has been identified as the Board of Directors of the
loss have been transferred to the customer and the customer has accepted the product. Parent Company that makes strategic decisions.
The consideration which the Group receives in exchange for its goods or services may be fixed or variable. 4.23 Research and development
Variable consideration is only recognized when it is highly probable that a significant reversal will not occur.
Revenue is measured based on the consideration specified in a contract with a customer, net of returns, Research and development expenditure is charged to profit or loss in the period in which it is incurred.
amounts collected on behalf of third parties (sales taxes etc), pricing allowances, other trade discounts,
volume rebates and couponing, price promotions to consumers / customers and any other consideration 4.24 Dividends
payable to customers. The level of discounts, allowances and promotional rebates are recognized, on
estimated basis using historical experience and the specific terms of the arrangement, as a deduction from Dividend distribution to the Group's shareholders and appropriations to / from reserves are recognised in the
revenue at the time that the related sales are recognized or when such incentives are offered to the customer period in which these are approved.
or consumer. Sales return provisions are recognized as deduction from revenue based on terms of the
arrangements with the customer and are included in trade and other payables. No asset is recognized for 4.25 Government grants
returns as they are not anticipated to be resold. A receivable is recognised when the goods are delivered as
this is the point in time that the consideration is unconditional because only the passage of time is required Government grant includes any benefit earned on account of a government loan obtained at below market
before the payment is due. rate of interest. The loan is recognized and measured in accordance with IFRS 9 “Financial Instruments”. The
benefit of the below-market rate of interest shall be measured as the difference between the initial fair value
The Group provides discounts to its customers on all products purchased by the customer once the quantity of the loan determined in accordance with IFRS 9 and the proceeds received. The difference, representing the
of products purchased during the period exceeds a threshold specified in the contract. A contract liability is grant amount (income) is recognized over the period of the loan.
recognised for expected discount payable to customers in relation to sales made until the end of the
reporting period. Further, a contract liability is also recognised for short term advances that the Group
receives from its customers.


Note 2022 2021

2021
5. PROPERTY, PLANT AND EQUIPMENT (Rupees in thousand)
Building on Office
Leasehold Leasehold Plant and Furniture Laboratory
leasehold and other Computers Vehicles Total
land improvements machinery and fittings equipments
Operating fixed assets 5.1 5,771,250 5,015,533 land equipments
Capital work-in-progress 5.4 2,147,899 467,421

Right-of-use assets 5.5 1,975,599 1,118,423 At 1 July 2020
9,894,748 6,601,377 Cost 232,549 38,069 2,680,906 3,094,489 409,647 309,014 340,663 50,580 87,330 7,243,247
Accumulated depreciation (41,057) (16,256) (418,993) (1,343,616) (240,054) (175,795) (188,866) (22,209) (67,567) (2,514,413)
Net exchange difference - 26,747 - - 82,484 22,365 13,251 - 19,641 164,488
Net book value 191,492 48,560 2,261,913 1,750,873 252,077 155,584 165,048 28,371 39,404 4,893,322
Additions / transfer -
note - 5.4.1 - 25,406 189,155 349,952 63,106 18,225 35,382 9,012 66,713 756,951
Disposals
Cost - - - - - - (7,341) - (40,454) (47,795)
Accumulated depreciation - - - - - - 7,104 - 17,014 24,118
- - - - - - (237) - (23,440) (23,677)
5.1 Operating fixed assets
Effect of movement in
exchange rate - 1,612 - - 6,151 1,515 3,188 - 420 12,886
2022
Depreciation charge for the year
Building on Office (4,228) (14,806) (91,565) (325,231) (61,574) (46,368) (54,315) (5,783) (20,079) (623,949)
Freehold Leasehold Leasehold Plant and Furniture Laboratory
leasehold and other Computers Vehicles Total
land land improvements machinery and fittings equipments
land equipments
Closing net book value 187,264 60,772 2,359,503 1,775,594 259,760 128,956 149,066 31,600 63,018 5,015,533
(Rupees in thousand) At 30 June 2021

At 1 July 2021 Cost 232,549 63,475 2,870,061 3,444,441 472,753 327,239 368,704 59,592 113,589 7,952,403
Cost - 232,549 63,475 2,870,061 3,444,441 472,753 327,239 368,704 59,592 113,589 7,952,403 Accumulated depreciation (45,285) (31,062) (510,558) (1,668,847) (301,628) (222,163) (236,077) (27,992) (70,632) (3,114244)
Accumulated depreciation - (45,285) (31,062) (510,558) (1,668,847) (301,628) (222,163) (236,077) (27,992) (70,632) (3,114,244) Net exchange difference - 28,359 - - 88,635 23,880 16,439 - 20,061 117,374
Net exchange difference - - 28,359 - - 88,635 23,880 16,439 - 20,061 177,374 Net book value 187,264 60,772 2,359,503 1,775,594 259,760 128,956 149,066 31,600 63,018 5,015,533
Net book value - 187,264 60,772 2,359,503 1,775,594 259,760 128,956 149,066 31,600 63,018 5,015,533
Useful life (years) 38 - 99 4-5 5 -60 5 - 10 5 5 - 10 3 5 - 10 5
Additions / transfer -
note - 5.4.1 207,257 - 145,284 184,967 338,283 77,909 129,989 138,240 11,192 187,564 1,420,684
Disposals
Cost - (2,200) - (5,651) (72,467) - (11) (13,035) - (69,323) (162,687)
Accumulated depreciation - 330 - 2,166 62,591 - 11 12,924 - 19,388 97,410 5.2 The depreciation charge for the year has been allocated as follows:
- (1,870) - (3,485) (9,875) - - (112) - (49,935) (65,277)
Effect of movement in Note 2022 2021

exchange rate - - 30,321 - - 57,621 24,861 25,992 - 11,280 150,075
Depreciation charge for the
year - (4,222) (29,910) (102,845) (358,819) (75,151) (63,410) (63,186) (8,311) (43,911) (749,765)
Cost of sales 27 469,690 419,134
Closing net book value 207,257 181,172 206,467 2,438,141 1,745,182 320,140 220,395 250,000 34,481 168,016 5,771,250 Distribution costs 28 161,927 103,596
At 30 June 2022 Administrative expenses 29 118,149 101,219
Cost 207,257 230,349 208,759 3,049,377 3,710,257 550,662 457,217 493,909 70,784 231,830 9,210,400 749,765 623,949
Accumulated depreciation - (49,177) (60,972) (611,236) (1,965,074) (376,779) (285,562) (286,340) (36,303) (95,155) (3,766,599)
Net exchange difference - - 58,680 - - 146,256 48,741 42,431 - 31,341 327,449
Net book value 207,257 181,172 206,467 2,438,141 1,745,182 320,140 220,395 250,000 34,481 168,016 5,771,250
Useful life (years) - 38 - 99 4-5 5 - 60 5 - 10 5 5 - 10 3 5 - 10 5


5.3 The details of property, plant and equipment having net book value of Rs. 500,000 and
above sold / disposed of during the year by the Parent Company are as follows:
5.4 Capital work-in-progress (CWIP) 2022 2021
Accumulated Net book Gain / (loss) Particulars of Relationship with
Description Sale
Cost depreciation value proceeds on disposal
Mode of disposal purchaser and the purchaser Note (Rupees in thousand)
relationship
(Rupees in thousand) Civil works 5.4.1 1,308,446 50,278

Advance against civil work 599,542 -
Buildings 5,651 2,166 3,485 1,200 (2,285) Negotiation Mr. Khayal Muhammad Nasir Company's Vendor Plant and machinery 161,431 114,228
Afirdi Rafiq
Motor Vehicles 3,149 459 2,690 3,231 540 Company Policy Mr. Saad Bin Khalid Company's Executive Advance against Plant & Machinery and Office Equipment 60,118 -
Motor Vehicles 2,914 364 2,550 3,011 461 Company Policy Mr. Shayan Naseem Company's Executive Office equipment 8,335 112
Plant & Machinery 3,685 1,720 1,965 263 (1,702) Negotiation Mr. Amir Majeed Third party Furniture & Fixtures 7,879 -
Motor Vehicles 2,268 331 1,938 2,533 595 Company Policy Mr. Ahmad Ismail Company's Executive Advance against motor Vehicles and furniture & fixtures 2,148 2,252
Land - Lease Hold 2,200 330 1,870 2,090 220 Negotiation Punjab Industrial Estates Company's Vendor Advance against computer - 16,220
Development and Advance against acquisition of land - 284,331
Management Company 2,147,899 467,421
(PIEDMC)
Motor Vehicles 2,297 431 1,866 2,110 244 Company Policy Mr. Inam Ul Haq Company's Executive
Motor Vehicles 2,124 310 1,814 2,296 482 Company Policy Mr. Humayun Javed Company's Executive
Motor Vehicles 2,090 425 1,665 0 (1,665) Company Policy Mr. Irfan Hafeez Company's Executive 5.4.1 Includes borrowing costs capitalized during the year amounting to Rs. 103.9 million (2021: nil).
Motor Vehicles 1,934 387 1,547 1,870 322 Company Policy Mr. Rahim Hasan Company's Executive 5.4.1.2 During the year the additions to CWIP and transfer of respective assets amounted to Rs. 1,703.16 million (2021:
Motor Vehicles 1,403 117 1,286 1,348 61 Company Policy Mr. Hatif Yousuf Company's Executive Rs. 438.98 million) and Rs. 362.06 million (2021: Rs. 347.18 million) respectively.
Motor Vehicles 1,576 296 1,281 642 (638) Company Policy Mr. Abdul Kaleem Company's Executive
Motor Vehicles 1,421 148 1,273 1,316 43 Company Policy Mr. Wassi Abbas Company's Executive
Motor Vehicles 1,320 83 1,238 992 (246) Company Policy Mr. Muhammad Ibrahim Company's Executive
Motor Vehicles 1,573 393 1,180 1,268 88 Company Policy Mr. M. Shahmir Khan Company's Executive
Motor Vehicles 1,539 371 1,167 2,967 1,800 Company Policy Mr. Syed Hasan Ali Khan Company's Executive
Motor Vehicles 1,386 254 1,132 1,351 219 Company Policy Mr. M. Uzair Ahmed Khan Company's Executive Particulars of immovable property (i.e. land and building) in the name of the Parent Company are as follows:
Motor Vehicles 1,292 188 1,104 550 (554) Company Policy Mr. Mian Anjum Hafeez Company's Executive
Motor Vehicles 1,246 182 1,064 1,028 (37) Company Policy Mr. M.Aneeque Khan Khakwani Company's Executive
Motor Vehicles 1,451 411 1,040 1,266 227 Company Policy Mr. Col. Khalid Mahmood Company's Executive
Motor Vehicles 1,183 148 1,035 714 (322) Company Policy Mr. Taimoor Jamal Khan Company's Executive
Motor Vehicles 1,405 375 1,031 1,414 384 Company Policy Mr. Imran Akhtar Company's Executive
Plant & Machinery 1,818 849 970 130 (840) Negotiation Mr. Amir Majeed Third party
Motor Vehicles 1,237 283 953 1,886 933 Company Policy Mr. Abdul Basit Mehmood Company's Executive Location Usage of immovable property Geographical Location Total Area (In Sq. Ft.) Covered Area (In Sq. Ft.)
Motor Vehicles 1,027 86 941 216 (725) Company Policy Mr. Mian Zohaib Rasool Company's Executive
Motor Vehicles 1,059 132 927 1,317 390 Company Policy Mr. Ahmad Salman Company's Executive
Motor Vehicles 1,061 155 906 1,177 271 Company Policy Mr. Abdul Rehman Company's Executive Corporate office Office Building 12/CL-6 Claremount Road, 45,099 40,589
Motor Vehicles 1,200 300 900 422 (477) Company Policy Mr. M. Sheraz Khan Company's Executive Civil Lines, Karachi
Motor Vehicles 1,016 152 864 1,068 205 Company Policy Mr. Taimoor Shahzad Company's Executive
Motor Vehicles 958 180 778 378 (400) Company Policy Mr. Yasir Javed Company's Executive
Motor Vehicles 938 215 723 643 (80) Company Policy Mr. Muhammad Umair Company's Executive S.I.T.E. Manufacturing plant Unit F-160/ C, F- 133, 76,491 62,029
Motor Vehicles 900 183 717 351 (366) Company Policy Mr. Mohsin Ul Ibad Haider Company's Executive S.I.T.E., Karachi
Motor Vehicles 887 180 706 1,000 294 Company Policy Mr. Taimoor Aslam Company's Executive
Motor Vehicles 815 136 679 965 285 Company Policy Mr. Shoaib Arshad Company's Executive
Motor Vehicles 937 266 672 330 (342) Company Policy Mr. Muhammad Sheraz Khan Company's Executive Port Qasim Manufacturing plant Office A-13, North Western 435,600 265,556
Motor Vehicles 780 130 650 404 (246) Company Policy Mr. Zain Abbas Company's Executive Industrial Zone, Bin Qasim, Karachi
Motor Vehicles 629 39 590 497 (93) Company Policy Mr. Syed Waqar Ahmed Company's Executive
Motor Vehicles 745 168 578 284 (293) Company Policy Mr. Asif Mehmood Company's Executive
Motor Vehicles 802 227 574 2,231 1,656 Company Policy Mr. Muhammad Hammad Company's Executive Nooriabad Manufacturing plant A-393, Nooriabad Industrial Estate, 602,951 120,112
Motor Vehicles 802 227 574 878 304 Company Policy Mr. Mohsin Razzak Company's Executive Nooriabad
Motor Vehicles 778 208 571 1,362 791 Company Policy Mr. Faish Ullah Company's Executive
Motor Vehicles 778 208 571 862 291 Company Policy Mr. M. Ahsan Khan Company's Executive
Motor Vehicles 802 240 561 845 284 Company Policy Mr. Syed Hasan Jafri Company's Executive Gujranwala Manufacturing plant 53-KM G.T. Road, Chainwala Mord 130,000 36,000
Motor Vehicles 720 192 528 978 451 Company Policy Mr. Qasim Iqbal Company's Executive Amanabad, Gujranwala
Plant & Machinery 3,846 3,329 517 275 (242) Negotiation Mr. Amir Majeed Third party
Motor Vehicles 649 132 517 542 25 Company Policy Mr. Zeeshan Ali Company's Executive
Motor Vehicles 649 132 517 724 208 Company Policy Mr. Ahmed Ismail Company's Executive Faisalabad Land Plot No. 346 & 347 Phase - 2, 1,086,480 532,375
Motor Vehicles 1,405 1,405 - 1,405 1,405 Negotiation Mr. Salman Shad Company's Executive M-3 Industrial City, Faisalabad
Total 86,475 28,590 57,887 55,638 (2,247)


5.5 Right-of-use assets 6. INTANGIBLES AND GOODWILL

Note 2022 2021
The Group leases many assets including buildings and vehicles with lease terms of two to five years.
2022
Goodwill and intangibles 6.1 930,505 764,916
Properties Equipments Vehicles Total System under development 6.3 41,658 31,987
(Rupees in thousand) 972,163 796,903
Balance at 1 July 2021
Cost 1,390,885 17,700 101,070 1,509,655
Accumulated depreciation (342,861) (8,357) (40,014) (391,232) 6.1 Goodwill and intangibles
Net Book Value 1,048,024 9,343 61,056 1,118,423 2022
Additions 828,677 - 48,397 877,074 Computer
Charge for the year (328,317) (4,396) (31,379) (364,091) softwares and Goodwill Customer Trademark
Total
ERP System relationships and other
Balance at 30 June 2022 1,548,384 4,947 78,075 1,631,406
Effect of movements in exchange rates 324,842 1,777 17,575 344,193
1,873,226 6,724 95,649 1,975,599
Net book value Cost
1,873,226 6,724 95,649 1,975,599 Balance as at 1 July 2021 346,735 362,202 138,762 291,172 1,138,871
As at 30 June 2022
Addition 22,640 - - - 22,640
Effect of movement in exchange rates (39,546) 91,098 29,532 73,233 154,317
Balance as at 30 June 2022 329,829 453,300 168,294 364,405 1,315,828
2021
Accumulated amortisation
Properties Equipments Vehicles Total Balance as at 1 July 2021 312,051 - 61,904 - 373,956
Amortisation for the year 23,833 - 15,241 - 39,074
(Rupees in thousand) Effect of movement in exchange rates (39,894) - 12,187 - (27,707)
Balance at 1 July 2020 Balance as at 30 June 2022 295,990 - 89,333 - 385,323
Cost 870,982 8,463 78,221 957,666 Carrying amounts
Accumulated depreciation (170,095) (4,894) (22,572) (197,561) As at 30 June 2022 33,839 453,300 78,961 364,405 930,505
Net exchange difference - - - -
Net Book Value 700,887 3,569 55,649 760,105 Useful life (years) 3 Indefinite 10 Indefinite
Charge for the year (172,766) (3,463) (17,442) (193,671)

Balance at 30 June 2021 1,022,544 9,160 59,321 1,091,025
2021
Effect of movements in exchange rates 25,480 183 1,735 4,521
Computer
1,048,024 9,343 61,056 1,118,423 softwares and Goodwill Customer Trademark
Total
Net book value ERP System relationships and other
As at 30 June 2021 1,048,024 9,343 61,056 1,118,423
Cost
5.5.1 The depreciation of right-of-use assets for the year has been allocated as follows: Balance as at 1 July 2020 317,321 351,540 133,613 282,601 1,085,075
Addition 29,314 - - - 29,314
Effect of movement in exchange rates 100 10,662 5,149 8,571 24,482
Note 2022 2021 Balance as at 30 June 2021 346,735 362,202 138,762 291,172 1,138,871
(Rupees in thousand) Accumulated amortisation

Balance as at 1 July 2020 280,020 - 45,657 - 325,677
Cost of sales 27 8,390 - Amortisation for the year 32,024 - 13,587 - 45,611
Effect of movement in exchange rates 7 - 2,660 - 2,667
Distribution costs 28 354,308 193,671 373,955
Balance as at 30 June 2021 312,051 - 61,904 -
Administrative expenses 29 1,393 -
364,091 193,671 Carrying amounts
As at 30 June 2021 34,684 362,202 76,858 291,172 764,916
Useful life (years) 3 Indefinite 10 Indefinite

5.5.2 Equpiments and vehicles represent the asset obtained under finance lease arrangements.


6.2 The amortization charge for the year has been allocated as follows: Other operating cost Fixed cost of the CGU, which do not vary significantly with sales volume or
price. Management forecast these costs based on the current structure of
Note 2022 2021 the business, adjusting for inflationary increases but not reflecting any future
restructuring or cost saving measures. The amounts disclosed above are the
(Rupees in thousand) average operating costs for the forecast period. Management does not
anticipate material impact owing to change in the assumptions used for
Cost of sales 27 409 129
growth in other operating cost.
Distribution costs 28 16,231 14,930
Administrative expenses 29 22,434 30,553 Long term growth rate This is the weighted average growth rate used to extrapolate cash flows
39,074 45,612
beyond the budget period. Management does not anticipate material
impact owing to change in the assumptions used for growth in the long
6.3 This represent amount given to vendor for the development of software which is expected to be capitalised term rate.
next year.
Pre-tax discount rates Reflect specific risks relating to the business segment, and the country
6.4 Impairment testing of goodwill, trademark and other indefinite useful life in which it operates.
For the purpose of the impairment testing, goodwill acquired through business combination and trademarks
Sensitivity to changes in Management have considered and assessed reasonably possible other
with indefinite useful lives are allocated to the A-1 Bags and Supplies.
assumptions changes for other key assumptions and have not identified any instances
The recoverable amount of business operations of Al Bags & Suppliers Inc. (acquired entity) has been determined that could cause the carrying amount to exceed its recoverable amount.
based on its value in use, determined by discounting the future cash flows to be generated from its continuing use.
The cash flow projections are prepared covering period from 2023 to 2025 till terminal period. The calculations 7. LONG-TERM INVESTMENT
used for cash flow projections are based on financial projections prepared by management. Note 2022 2021
The value in use determined for underlying cash generating unit is higher than its carrying amount.
Investment at fair value through profit or loss (FVTPL)
The key assumptions used in the estimation of value in use were as follow:
Naimat Collateral Management Company Limited 7.1 30,000 30,000
Percentage (%) Less: Provision for Impairment 7.1.1 (15,784) -
Sales (% annual growth rate) 14,216 30,000
7.0
Budgeted gross margin (%) 5.5 7.1 The movement in provision for impairment during the year is as follows:
Other operating cost Note 2022 2021

5.4
Long term growth rate 5.0
Pre-tax discount rate (%) 11.9 Balance at beginning of the year - -
Provision recognized during the year 7.1.1 (15,784) -
Balance at end of the year (15,784) -
Management has determined the values assigned to each of the above key assumptions as follows:
Assumptions Approached used to determine values 7.1.1 On 25 February 2020, the Company subscribed 2,999,500 ordinary shares of Rs.10 each in Naymat
Sales Volume Average annual growth rate over the forecast period based on recent performance Collateral Management Company Limited (NCMCL). The Company's shareparent gives it ownership
and management’s expectations of market development. Management does not interest and voting power of 10% in it. NCMCL is an unlisted public company that was incorporated under
anticipate material impact owing to change in the assumptions used for growth in Companies Act, 2017 on 21 January 2020 and has its registered office at C-25/B, Block 4, Clifton,
sales volume. Karachi Saddar Town, Sindh, Pakistan. It is engaged in the business of providing storage and preservation
Sales Price Average annual growth rate over the forecast period based on current industry services for a range of agricultural commodities as well as issuing credible warehouse receipts for
trend and including long term inflation forecast. Management does not anticipate agricultural commodity financing.
material impact owing to change in the assumptions used for growth in sales price.
Investment in NCMCL is carried at fair value through profit or loss (FVTPL). The assessment of the fair
Budgeted gross margin Based on recent performance and management’s expectation for the future.
value is based on their unaudited accounts.


8. DEFERRED ASSET / LIABILITIES 8.6 Remeasurements recognised in other comprehensive income

Note 2022 2021
Pension Plan Pensioners' Medical Plan
2022 2021 2022 2021
Pension Plan - parent company 8.4 (43,806) (46,816) (Rupees in thousand)
Pensioners' Medical Plan - parent company 8.4 (9,850) 7,006
Re-measurements: Actuarial
Staff terminal benefits - subsidiary company 8.19 6,340 3,662
(gain) / loss on obligation
(47,316) (36,149)
- (Gain) / Loss due to change in 2,688 (35,300) (13,104) (171)
financial assumptions
8.1 The Parent Company operates a funded pension scheme and post retirement medical benefit for chief - (Gain) / Loss due to change in 3,577 16,463 (6,690) (24,845)
executive, one non-executive and spouse of one former director. Actuarial valuation of these plans is carried experience adjustments
out every year and the latest actuarial valuation was carried out as at 30 June 2022. Actuarial (gain) / loss on defined 6,265 (18,837) (19,794) (25,016)
benefit obligation
8.2 Plan assets held in trust are governed by local regulations which mainly include the Trust Act, 1882, the
Companies Act, 2017, the Income Tax Rules, 2002 and Rules under the Trust Deed of the Plans. Responsibility Re-measurements: Return on
for governance of the Plans, including investment decisions and contribution schedules, lies with the Board plan assets
of Trustees. The Parent Company appoints the Trustees and all Trustees are employees of the Parent
Company. Actuarial loss / (gain) 10,452 (2,206) 2,683 (948)
8.3 The latest actuarial valuation of the Fund as at 30 June 2022 was carried out using the Projected Unit Credit
Method. Details of the Fund as per the actuarial valuation of the plan assets of the parent company are as Total defined benefit cost recognised
follows: in other comprehensive income 16,717 (21,043) (17,111) (25,964)
8.4 Balance sheet reconciliation of the plan assets of the parent company
8.6.1 Net acturial gain recognised in other Comprehensive Inocme for the above to plans is Rs. 0.394 million
Pension Plan Pensioners' Medical Plan (2021: Rs. 47.007 million)
Note 2022 2021 2022 2021
8.7 Expense recognised in statement of profit or loss
Present value of defined benefit obligations 8.8 210,740 181,747 54,087 67,517 Pension Plan Pensioners' Medical Plan
Fair value of plan assets 8.9 & 8.10 (254,546) (228,563) (63,938) (60,511)
2022 2021 2022 2021
(43,806) (46,816) (9,850) 7,006
8.5 Movement in the net liability recognised in the balance sheet
Component of defined benefit
Note 2022 2021 2022 2021 costs recognized in profit and
loss account
Current service cost 6,485 6,511 1,463 1,809
Opening balance (46,816) 50,165 7,006 30,358 Net interest cost
Remeasurements recognised in - Interest cost on defined 18,819 16,770 6,792 7,742
benefit obligation
other comprehensive income 8.6 16,717 (21,043) (17,111) (25,964)
- Interest income on plan assets (23,390) (12,119) (2,683) (5,056)
Charge / (income) for the year 8.7 1,915 11,162 5,573 4,495
(4,570) 4,651 4,109 2,686
Contribution made (15,621) (87,100) - -
1,915 11,162 5,573 4,495
Payments made to members by Parent Company - - (1,892) (1,884)
Closing balance (43,806) (46,816) (6,425) 7,006


8.8 Movement in the present value of defined benefit obligations 8.13 Principal actuarial assumptions
Pension Plan Pensioners' Medical Plan Pensioners' Medical Plan
2022 2021 2022 2021 2022 2021
Obligation as at July 1 181,747 180,215 67,517 84,866 Expected rate of increase in salaries 13.50% 10.25%
Current service cost 6,485 6,511 1,463 1,809 Expected rate of increase in pension 6.50% 3.25%
Interest cost 18,819 16,770 6,792 7,742 Expected rate of increase in medical benefits 11.50% 10.25%
Benefits paid (2,576) (2,912) (1,892) (1,884) Discount factor used 13.50% 10.25%
Actuarial loss / (gain) 6,265 (18,837) (19,794) (25,016) Mortality rate SLIC (2001-05) SLIC (2001-05)
Obligation as at June 30 210,740 181,747 54,087 67,517 Rates of employee turnover Light Light
8.9 Movement in the fair value of plan assets 8.14 Cost for the next financial year
Pension Plan Pensioners' Medical Plan
As per the actuarial valuation report charge for the next financial year is as follows:
2022 2021 2022 2021 2023
Pension Pensioners'
(Rupees in thousand) Plan Medical Plan
As at July 1 228,563 130,050 60,512 54,508 (Rupees in thousand)
Income on plan assets 23,390 12,119 6,109 5,056
Contribution made 15,621 87,100 - - Current service cost 1,029 237
Benefits paid (2,576) (2,912) - -
Actuarial (gain) / loss (10,452) 2,206 (2,683) 948 8.15 Sensitivity analysis for actuarial assumptions
As at June 30 254,546 228,563 63,938 60,512
The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
8.10 Components of Plan assets 2022

Pension Plan Pensioners' Medical Plan Change in Impact on defined benefit
assumption obligation - Increase /
2022 2021 2022 2021 decrease in liability
Discount rate at June 30 1.00% 237,477 297,174
Cash at bank 134,464 115,911 33,775 30,687
Future salary increases 1.00% 218,199 203,497
Special saving certificates 6,530 - 1,640 -
Investment in mutual fund 113,552 112,652 28,522 29,825
Medical cost increases 1.00% 59,841 49,175
254,546 228,563 63,938 60,512
2021
Change in Impact on defined benefit
assumption obligation - Increase /
8.11 These certificates of National Saving Schemes of the Government of Pakistan has matured. decrease in liability
8.12 This represents 331,446 units, 100,701 units, 604,129 units, 617,873 units and 109,210 units invested in
NAFA Asset Allocation Fund, Al Meezan Asset Allocation Fund, HBL Money Market Fund, HBL Cash Fund and Discount rate at June 30 1.00% 221,080 283,120
HBL Equity Fund respectively wth the fair value of Rs. 4.95 million, Rs. 4.03 million, Rs. 62.02 million, Rs. 62.5 Future salary increases 1.00% 189,771 174,032
million and Rs. 8.5 million respectively. Future pension increases 1.00% 198,438 167,211
Medical cost increases 1.00% 76,247 60,239


The sensitivity analysis is based on a change in an assumption while parent all other assumptions constant. 9.1 Stock in trade includes Rs. 3.99 billion (2021: Rs. 2.78 billion) held with third parties for the purpose of further
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When distribution to end customers and packaging purposes. This includes goods in transit of Rs. 17.5 million
calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (2021: Nil) against the sale of National Foods DMCC.
(present value of the defined benefit obligation calculated with the projected unit credit method at the end of the
reporting period) has been applied when calculating the pension liability recognised within the balance sheet.
9.2 The above balances include items costing Rs. 75.28 million (2021: Rs. 124.71 million) valued at net realisable
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the value of Rs. 62.15 million (2021: Rs. 101.08 million).
previous year.
8.16 The expected return on plan assets is based on the market expectations and depends upon the asset portfolio of 9.3 During the year, the Group has booked provision for obsolescence of Rs. 355.77 million (charge 2021:
the plan, at the beginning of the period, for returns over the entire life of the related obligation. Rs. 235.43 million) and has written off stocks against the provision amounting to Rs. 224.89 million (2021:
Rs. 57.20 million).
8.17 The weighted average duration of defined benefit obligation of pension plan and pensioners' medical plan is 10.65
years and 9.06 years respectively.
8.18 During the year, the Parent Company contributed Rs. 78.06 million (2021: Rs. 70.33 million) to the provident fund. 9.4 This includes goods in transit pertaining to raw materials amounting to Rs. 171 million.
8.19 Staff terminal benefits obligation relating to NF DMCC (Subsidiary Company)
2022 2021 10. TRADE DEBTS
Note 2022 2021
Opening liability 3,662 6,291
Reversal for the year (1,578) (2,323)
Exchange difference 4,257 (306) Considered good - unsecured
Closing liability 6,340 3,662 Others
- Local 1,292,913 446,239
This represent staff terminal benefits calculated in accordance with U.A.E. labour laws. Three employees - Foreign 1,430,937 525,159
are covered under the above scheme. 2,723,850 971,398
Considered doubtful 150,255 96,072
9. STOCK-IN-TRADE 2,874,105 1,067,470
2022 2021 Allowance for impairment 10.1 (150,255) (96,072)
Note (Rupees in thousand) 2,723,850 971,398
Raw materials 9.1 & 9.4 3,185,293 1,940,112

Provision for obsolescence 9.3 (78,559) (58,725) 10.1 The movement in the allowance for impairment for trade debts is as follows:
3,106,734 1,881,387
2022 2021
Packing materials 9.1 749,519 742,879
Provision for obsolescence 9.3 (170,659) (41,595) (Rupees in thousand)
578,860 701,284
Opening provision 96,072 84,463
Charge for the year - net 47,365 32,551
Work-in-process 9.3 1,689,635 1,165,369
Write-offs (23,668) (16,506)
Provision for obsolescence (72,348) (73,219)
Exchange difference 30,486 (4,436)
1,617,287 1,092,150
Closing provision 150,255 96,072
Finished goods 9.1 & 9.2 4,204,232 2,914,503

Provision for obsolescence 9.3 (47,395) (125,640)
4,156,837 2,788,863
9,459,718 6,463,684


11. ADVANCES 13. OTHER RECEIVABLES
2022 2021 2022 2021

Note (Rupees in thousand)
Considered good Note Due from related parties

Employees - against expenses - 443 - ATC parents (Private) Limited - 956
Suppliers 11.1 806,235 277,603 - Director - 205
806,235 278,046 - 1,161
Considered doubtful Others 273 18,611
Suppliers 41,929 27,684 Receivable from the Provident fund - 4,575
848,164 305,730 Workers' Profit Participation Fund 13.1 - 5,969
Provision for doubtful advances to suppliers (41,929) (27,684) 273 30,316
806,235 278,046
11.1 These advances are unsecured and do not carry any mark up. This also includes cash margin of Rs. 397.6
million on account of imports of machinery. Remaining balance of Rs. 334.83 million has been paid to the 13.1 Workers' Profit Participation Fund
supplier for the raw material purchase.
2022 2021
12. DEPOSITS AND PREPAYMENTS (Rupees in thousand)
Payable as at July 1 5,969 (70,765)

2022 2021 Allocation for the year (138,777) (92,653)
(Rupees in thousand) (132,808) (163,418)
Amount paid during the year 130,621 169,387
Considered good (Payable) / receivable as at June 30 (2,187) 5,969
Deposits 16,536 9,000
Prepayments 482,574 335,097
499,110 344,097
12.1 These trade deposits and prepayments are mainly against rent, insurance and utilities and are not considered
doubtful. These do not carry any mark up arrangement.


14. SHORT TERM INVESTMENTS at FVTPL 15. CASH AND BANK BALANCES
Name of Fund As at Invested Redeemed As at 2022 2021

1 July during during 30 June
2021 the year the year 2022 Note (Rupees in thousand)
Cash in hand 2,230 1,874

(Number of units)
Cash at bank - current account
MCB Cash Management Optimizer - 4,935,844 - 4,935,844 - local currency 15.1 425,022 2,274,505
Habib Islamic Money Market Fund - 3,555,631 3,555,631 - - foreign currency 703,507 762,885
HBL Cash Fund - 7,436,464 2,501,263 4,935,201 1,128,529 3,037,390
Meezan Daily Income Fund 20,023,980 10,051,001 30,074,981 -
Meezan Rozana Amadni Fund - 22,536,177 22,536,177 - Cash at bank - saving account
Faysal Stock Fund - local currency 6,575 3,209
- 1,350,554 681,448 669,106
1,137,335 3,042,473
Faysal Islamic Cash Fund - 3,431,714 3,431,714 -
Faysal Money Market Fund - 9,639,908 9,639,908 -
ABL Cash fund - 49,113,206 24,590,583 24,522,623
15.1 The current accounts are placed with banks under conventional banking arrangements.
Alfalah GHP Money Market Fund - 10,068,035 10,068,035 -
Alfalah GHP Stock Fund - 853,202 430,206 422,996 15.2 These carry markup rates of 8% per annum ( 2021: 6.5% per annum).
Alfalah Islamic Rozana Amadni Fund - 3,480,179 3,480,179 -
Total 20,023,980 126,451,915 110,990,125 35,485,770
16. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL
2022 2021 2022 2021

Name of Fund As at Invested Redeemed As at
(Number of shares) (Rupees in thousand)
1 July during during 30 June
2021 the year the year 2022 3,139,975 2,511,980 Ordinary shares of Rs. 5 (2020: Rs. 5) each
issued for consideration paid in cash 15,700 12,560
229,975,450 183,980,360 Ordinary shares of Rs. 5 (2020: Rs. 5) each

MCB Cash Management Optimizer - 500,000 - 500,000 as fully paid bonus shares 1,149,876 919,901
ABL Cash fund - 500,409 250,354 250,055
Meezan Daily Income Fund - 502,550 502,550 - 233,115,425 186,492,340 1,165,576 932,461
Habib Islamic Money Market Fund - 359,739 359,739 -
HBL Cash Fund - 751,611 251,611 500,000
Meezan Rozana Amadni Fund 1,001,199 1,126,809 2,128,008 - 16.1 As at 30 June 2022, ATC parents (Private) Limited (ultimate parent company) held 78,911,813 (2021:
Faysal Islamic Cash Fund - 343,171 343,171 - 62,649,451) ordinary shares of the Company
Faysal Money Market Fund - 508,523 508,523 -
Faysal Stock Fund - 36,427 - 36,427
Alfalah GHP Money Market Fund - 512,106 512,106 -
Alfalah GHP Stock Fund - 38,313 - 38,313
Alfalah Islamic Rozana Amadni Fund - 348,721 348,721 -
Total 1,001,199 5,528,379 5,204,783 1,324,795


17. NON-CONTROLLING INTEREST (NCI) 18.1 This represents original long term finance facilities of Rs. 793 million and salary refinance loan of 824.6 million
obtained from a commercial bank. These finances carry markup at 3 month Kibor + 0.1%, + 0.4% & SBP rate +
Below is summarised financial information of A-1 Bags & Supplies Inc. that has a non-controlling interest
0.3%, + 1% & + 2% (effective rate 9.03% to 9.84%). The loan are secured by way of hypothecation of Company's
(40% stake) that is material to the Group. The amounts disclosed are before inter-group eliminations.
present and future fixed assets and hypothecation of company's present and future stocks and receivables.
These loans are from 3 years to 10 years. These loans are fully repayable in equal quarterly installment of
Summarised balance sheet 2022 2021
rupees 132.45 million between July 2022 to September 2029.
Non-current assets 2,852,928 1,589,191 18.2 The Group has entered into a long term loan agreement with MCB Bank Dubai. It carries profit at the rate of 3
Current assets 4,131,293 2,266,745 month LIBOR + 3% per annum. At the year end, the applicable effective rate was 4.36% per annum. The tenor
Non-current liabilities (1,905,078) (1,069,282) of facility is 5 years with grace period of 1 year from insurance deposit account - IDA (for each tranche). The
Current liabilities (2,917,388) (1,434,607) principal is payable in equal quarterly installments. This facility is secured against 60% shares of Al Bags &
2,161,755 1,352,047 Suppliers Inc., undated security cheque, promissory note and assignment of receivables of the Group.
Accumulated NCI 767,772 635,103

18.3 Due to the effects of pandemic. State Bank of Pakistan took various steps to support the economy. SBP
2022 2021 introduced a refinance scheme for payment of salaries and wages at subsidized rate of borrowing.
Summarised statement of profit or loss and
comprehensive income (Rupees in thousand) The company has obtained the said borrowing from Habib Bank Limited at subsidized rate of 2% on 25th June
2020 and 1% on 21st August 2020 which are repayable by October 2022 in 8 quarterly installments to HBL
Sales 24,085,143 11,170,705 under the SBP scheme. Above balance shall be recognized in income by October 2022.
Profit for the period 912,328 553,802
Total comprehensive income 809,132 553,802 18.4 A-1 Bags & Supplies Inc., obtained loan from TD commercial bank details of whose are as follows:
Profit allocated to NCI 337,525 216,086
Eligible dividend to NCI 167,892 113,765 TD commercial loan and detailed breakdown are as follows:
Summarised cash flows

Note 2022 2021
Cash flow from operating activities 538,426 459,205 (Rupees in thousand)
Cash flow from investing activities (498,012) (116,613)
Cash flow from financing activities (63,515) (513,171) Vehicle loan 18.4.1 - 274
Net (decrease) / increase in cash and cash equivalents (23,100) (170,579) TD bank loan 18.4.2 17,660 41,373
TD bank loan 18.4.3 11,299 22,015
TD bank loan 18.4.4 54,809 61,001
Note 2022 2021 TD bank loan 18.4.5 50,055 49,498
18. LONG-TERM FINANCE AND DEFERRED INCOME
TD bank loan 18.4.6 14,692 -
TD bank loan 18.4.7 136,969 -
Long-term finance TD bank loan 18.4.8 15,516 -
- MCB Bank Limited - Pakistan 18.1 491,351 608,675 TD bank loan 18.4.9 41,224 -
- Habib Bank Limited - Pakistan 18.1 178,802 591,277 Vehicle loan 18.4.10 12,202 -
- MCB Bank Dubai 18.2 98,619 224,056
354,426 174,161
- TD Commercial Bank - Canada 18.4 354,426 174,161
- Deferred income - government grant 18.3 2,037 29,466
1,125,236 1,627,635
Less: Current maturity of long-term finance (611,613) (717,130)
Less: Current portion of deferred income - government grant (2,037) (27,429)
511,586 883,076


2022 2021
18.4.1 Vehicle loan payable to Royal Bank of Canada - loan is secured by a charge of the vehicle, it is non-interest 19. LEASE LIABILITIES
bearing with monthly payments of $ 721, matured in September 2021.
Opening balance 1,176,126 778,017
18.4.2 TD bank loan, secured by accounts receivable, bears interest at a rate of 4.64% per annum and is repayable Additions 866,974 545,024
in 60 equal monthly payments of $ 18,787 including interest, maturing in December 2022. Interest expense 163,954 80,818
Rental paid (457,418) (228,967)
18.4.3 TD bank loan, secured by accounts receivable, bears interest at a rate of 5.06% per annum and is repayable Effect of movements in exchange rates 365,304 1,234
in 60 equal monthly payments of $ 9,066 including interest, maturing in February 2023. 2,114,940 1,176,126
18.4.4 TD bank loan, secured by accounts receivable, bears interest at a rate of 4.85% per annum and is repayable Current portion (433,964) (218,022)
in 60 equal monthly payments of $ 13,064 including interest, maturing in October 2024. Balance as at 30 June 2022 1,680,976 958,104
18.4.5 TD bank loan, to finance equipment purchase, secured by accounts receivable, bears interest at a rate of
3.85% per annum and is repayable in 60 equal monthly payments of $ 6,530 including interest, maturing in
October 2026. Rentals Interest charge Present value
3.55% per annum and is repayable in 24 equal monthly payments of $ 6,430 including interest, maturing in
July 2023. Not later than one year 534,353 100,381 433,972
Later than one year but not later than three years 1,664,253 174,367 1,489,886
18.4.7 TD bank loan, to finance equipment purchase, secured by accounts receivable, bears interest at a rate of Later than five years and above 213,502 22,419 191,083
4.09% per annum and is repayable in 60 equal monthly payments of $ 16,045 including interest, maturing in 2,412,108 297,167 2,114,940
October 2026.
4.67% per annum and is repayable in 60 equal monthly payments of $ 93,825 including interest, maturing in 20. LONG TERM PROVISIONS
January 2027.
This represents liability against Gas Infrastructure Development Cess (GIDC) amounting to Rs. 76.01 million
18.4.9 TD bank loan, to finance equipment purchase, secured by accounts receivable, bears interest at a rate of and are presented at present value of the total liability of Rs. 72.5 million (2021: Rs. 69 million) discounted in
5.79% per annum and is repayable in 60 equal monthly payments of $ 4,484 including interest, maturing in accordance with ICAP technical service guidelines 'Accounting for Gas Infrastructure Development Cess
May 2027. (GIDC)' dated 19 January 2021.
18.4.10 Vehicle loan payable to Royal Bank of Canada - loan is secured by a charge of the vehicle, bears interest at a Current portion of the liability amounts to Rs. 50.04 million (2021: Rs. 29.87 million). The future value has been
rate of 3.65% per annum and is repayable in 96 equal monthly payments of $ 949, maturing in March 2030. discounted 7.1 % per annum. Monthly installments due under a court order amounts to Rs. 1.58 million and is
due by September 2024.
Under the terms of the TD credit facility, the A-1 Bags & Supplies Inc., is required to comply with certain
financial and non-financial covenants. As at June 30, 2022, the A-1 Bags & Supplies Inc., is in compliance of
these covenants.


2022 2021
21. DEFERRED TAXATION - net 22.1 The Finance Act 2008 introduced amendments to the Workers' Welfare Fund (WWF) Ordinance, 1971
whereby the definition of industrial establishment was extended. The amendments were challenged at
Credit / (debit) balance arising in respect of: various levels and conflicting judgments were rendered by the Lahore High Court, Sindh High Court and
Accelerated tax depreciation / amortisation 393,878 344,331 Peshawar High Court. The Company is of the view that it is not liable to pay this liability. However, the
Provision for retirement benefits obligations and other provisions 13,746 (2,481) management has made provision for WWF for the years from 2015 to 2022 amounting to Rs. 221 million as a
Right-of-use assets 9,293 - matter of abundant caution.
416,917 341,850
The Honourable Supreme Court of Pakistan vide its judgment dated 10 November 2016, has upheld the view
Provision for stock obsolescence (112,833) (79,772) of Lahore High Court and decided that WWF is not a tax and hence the amendments introduced through
Provision for doubtful trade debts (11,232) (6,685) Finance Act 2008 are ultra-vires to the Constitution. The Federal Board of Revenue has filed Civil Review
Lease liabilities (9,916) - Petitions in respect of above judgment with the prayer that the judgment dated 10 November 2016 passed
Finance costs - (254) in the Civil Appeal may kindly be reviewed in the interest of justice.
Provisions for GIDC and others (83,427) (47,033)
"The management, as a matter of abundant caution, has decided to maintain the provision of WWF till the
(217,407) (133,744)
decision of Supreme Court in respect of Civil Review Petition."
199,510 208,106
22.2 All investments out of provident fund maintained by the Parent Company have been made in accordance with
the provisions of Section 218 of the Companies Act 2017 and the conditions specified there under.
22.3 This relates to consideration received from the customers for goods sold which the Company expects to
21.1 During the year tax effect of temporary differences of Rs. 6.8 million (2021: Rs. 100.8 million) was refund to the customers.
recognized in profit or loss and Rs. 0.114 million (2021: 13.63 million) recognized in other
comprehensive income. 22.4 This relates to remuneration payable to directors.
22. TRADE AND OTHER PAYABLES

Note 2022 2021
Creditors 2,411,970 1,752,960

Accrued liabilities 4,537,576 3,071,468
Workers' Profits Participation Fund 13.1 2,267 -
Workers' Welfare Fund 22.1 221,700 165,763
Payable to provident fund 22.2 4,963 -
Refund Liabilities 22.3 69,694 61,034
Tax deducted at source 393,701 237,629
Other liabilities 59,551 48,386
Provisions classified as current 20 50,038 29,875
Due to related parties - Directors 22.4 29,408 23,548
Sales tax payable 1,012 -
7,781,881 5,390,663


Note 2022 2021

23. CONTRACT LIABILITIES 25. CONTINGENCIES AND COMMITMENTS
Advances from customers 109,100 195,391 25.1 There are cases against the company which are outstanding as at 30 June 2022. The management is
confident that the decision will be in favor of the Company.
24. SHORT-TERM BORROWINGS
25.2 The facilities for opening letters of credit amount to Rs. 4.295 billion (2021: Rs. 1.84 billion) and for letters of
Conventional
guarantee amount to Rs. 515 million (2021: Rs. 215 million) as at 30 June 2022 of which the amount remaining
Running finance under mark up arrangements 24.1 1,828,359 2,103,935
unutilised at year end were Rs 3.49 billion (2021: Rs. 1.59 billion) and Rs. 136 million (2021: Rs. 116 million)
Demand operating loan 24.2 613,207 70,649
respectively.
Export re-finance 24.3 800,000 600,000
Money market loan 450,000 -
25.3 Aggregate commitments for capital expenditure as at 30 June 2022 amount to Rs. 3.1 billion (2021: Rs.
467.43 million). Aggregate commitments in respect of ujrah payments for ijarah financing of motor vehicles
Islamic
bearing from first habib metro ranging from three months KIBOR + 0.75% (2021: three months KIBOR +
Running finance under Musharakah 24.4 1,191,524 86,860
0.75%) while meezan bank ranging from three to six months KIBOR + 1.25% respectively (2021: six months
4,883,090 2,861,444
KIBOR + 1.25%) per annum for rentals payable monthly as at 30 June 2022 amount to:
2022 2021
24.1 The parent company has facilities for running finance available from various commercial banks are for the
purpose of meeting working capital requirements. The effective rates of mark-up on these finances range (Rupees in thousand)
from 9.77% to 10.30% (2021: 7.29% to 7.92%) per annum. The facilities offer are valid upto 30 June 2022 to Not later than one year 330,443 199,461
31 May 2023. Later than one year but not later than five years 755,640 432,806
1,086,083 632,267
24.2 A demand operating loan has been authorized by Toronto Dominion ("TD") bank to a maximum of AED 28.471
million and bears interest at TD bank's prime lending rate plus 0.3% per annum and is secured by a general Total sanctioned facilities from banks amount to Rs. 1,801 million, out of which Rs. 1,013 million has been
security agreement, an assignment of insurance and postponement of related party loans. As at 30 June utilized by the company.
2022, the Company has used AED 10.857 million (2021: AED 1.647 million) of the bank credit facility.
25.4 Aggregate commitments in respect of ujrah payments for ijarah financing of motor vehicles bearing a mark up
24.3 The Company has short term running finance facility under Export Refinance Scheme of the State Bank of ranging from six months KIBOR + 0.75% to six months KIBOR + 1.25% (2021: six months KIBOR + 0.75% to six
Pakistan from a commercial bank. The effective rate of mark-up on this facility is 2.5% (2021: 2.5%) per months KIBOR + 1.25%) per annum for rentals payable monthly as at 30 June 2022 amount to:
annum. The facilities offer are valid upto 30 June 2022.
26. SALES - NET
24.4 The Company has obtained facilities for short-term finance under Running Musharakah. The effective rate of Note 2022 2021
profit is 9.99% to 10.73% (2021: 6.73% to 9.43%) per annum. This facility matures within twelve months and
is renewable. The facilities offer are valid upto 30 June 2022 to 31 January 2023. (Rupees in thousand)
- Local sales 36,644,222 32,194,639

24.5 The facilities available from various banks amount to Rs. 4.2 billion (2021: Rs. 2.7 billion). The arrangements are - Export sales 26.1 22,219,472 14,396,972
secured by way of pari-passu charge against hypothecation of Company's current and future movable Gross sales 58,863,695 46,591,611
assets having aggregate charge amounting to Rs.6.5 billion. These facilities offer are valid upto 31 July 2022. Less: Sales tax (5,919,275) (5,011,067)
52,944,419 41,580,544
24.6 As at 30 June 2022, the unavailed facilities from the above borrowings by the parent company amounted to Less:
Rs. 1.9 billion (2021: Rs. 2.2 billion). The details of the facility available to a subsidiary company are given in - Discount, rebates and allowances (6,880,404) (6,388,125)
note 24.2. - Sales return (538,407) (603,986)
(7,418,811) (6,992,111)
45,525,608 34,588,433


26.1 Export sales comprise of sales made in the following regions: 27.1 This includes professional service charges amounting to Rs. 24 million.
2022 2021
(Rupees in thousand) 28. DISTRIBUTION COSTS
Note 2022 2021
Middle East 645,620 574,247
USA/Canada 20,640,328 12,788,723 (Rupees in thousand)
Kingdom of Saudi Arabia 235,599 323,487
Europe/UK 484,905 431,962 Salaries, wages and other benefits 1,402,536 1,767,563
Others 213,021 278,553 Advertising and sales promotion 2,088,031 1,457,949
22,219,472 14,396,972 Outward freight and handling charges 1,043,534 874,853
26.2 Local sales are within Pakistan only. The Group has disaggregated revenue recognised from contracts with Depreciation 5.2 161,927 103,596
customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows Depreciation of right-of-use assets 5.5.1 354,308 193,671
are affected by economic factors.
Amortisation 6.2 16,231 14,930
2022 2021 Ujrah payments 142,944 99,238
(Rupees in thousand) Forwarding charges 71,165 59,713
Major Product Lines: Insurance 32,481 57,319
Condiments 16,941,727 16,682,515 Legal and professional charges 130,929 1,470
Culinary 22,536,242 18,075,313 Postage and communications 11,417 20,411
Cash and Carry - retail business 19,385.726 11,833,783 Printing and stationery 126,895 62,154
58,863,695 46,591,611
26.3 Net sales, net of sales return is Rs. 58.3 million (2021: 45.9 million). Travelling 291,727 214,830
27. COST OF SALES Repairs and maintenance 87,675 77,713
Note 2022 2021 Others 24,712 26,906
(Rupees in thousand) 6,280,339 5,319,701
Raw material consumed 24,981,960 17,441,177

Packing material consumed 4,030,332 3,853,071
Stores and spares consumed 175,941 206,995
Impairment loss against inventory 346,733 309,224
Brine and cutting charges 25,771 53,066
Salaries, wages and other benefits 1,550,391 1,400,337
Depreciation 5.2 469,690 419,134
Depreciation of right-of-use assets 5.5.1 8,390 -
Amortisation 6.2 409 129
Ujrah payments 26,811 29,286
Insurance 33,494 22,243
Laboratory, research and development 15,985 14,634
Postage and communications 5,340 13,893
Travelling 239,969 200,103
Repairs and maintenance 144,151 78,355
Inventory destruction charges 20,793 24,011
Others 27.1 61,516 70,484
33,126,844 24,833,877
Opening work in process 1,092,150 1,344,413
Closing work in process (1,617,287) (1,092,150)
Cost of goods manufactured 32,601,707 25,086,140
Opening stock of finished goods 1,270,543 1,020,421
Closing stock of finished goods (1,326,047) (1,270,543)
32,546,204 24,836,018


29. ADMINISTRATIVE EXPENSES

Note 2022 2021 30.2 Donations to following Organizations and Trusts exceed 10% of the Group's total amount of donation or
Rs. 1 million, whichever is higher:
2022 2021
Salaries, wages and other benefits 1,898,701 603,024
Contribution to provident fund 19,192 17,771 (Rupees in thousand)
Depreciation 5.2 118,149 101,219 Pakistan Agricultural Coalition - 3,250
Depreciation of right-of-use assets 5.5.1 1,393 -
Amortisation 6.2 22,434 30,553 Donations did not include any amount paid to any person or organization or institution in which a Director
Ujrah payments 35,160 36,982 or his / her spouse had any interest.
Insurance 49,079 11,646
Legal and professional charges 142,221 184,745 31. OTHER INCOME
Postage and communications 23,569 7,456 Note 2022 2021
Travelling 96,282 49,737 Income from financial instruments
Repairs and maintenance 281,087 218,975 Exchange gain / (loss) 374,339 (58,995)
Security charges 4,710 4,492 Return on profit or loss sharing bank account and term deposits - conventional 16,794 59,333
Others 29.1 47,153 53,773 Unrealized gain on short term investments at FVTPL - 1,199
2,922,066 1,443,960 Realized gain on short term investments at FVTPL 997 -
Income from short term investments at FVTPL - dividend income 42,854 -
434,984 1,537
29.1 This includes expenses in relation to office supplies amounting to Rs. 32 million.
30. OTHER EXPENSES Income from non-financial instruments

Note 2022 2021 Gain on disposal of property, plant and equipment 45,946 41.838
Export rebate 7,844 10,818
Rental income 3,074 3,638
Workers' Profits Participation Fund 138,350 92,653 Amortisation of government grant 18.3 27,429 46.977
Workers' Welfare Fund 55,937 37,061 Scrap sales 54,880 -
Impairment on long term Investments 7.1 15,784 - Insurance claim 31,441 -
Unrealized loss on short term investments at FVTPL 13,819 - Others 40,458 27,800
Auditors' remuneration 30.1 8,120 7,299 211,071 131,071
Demurrage and other related costs 60,160 -
Donations 30.2 4,708 6,042 646,054 132,608
296,878 143,055
30.1 Auditors' remuneration

2022 2021
KPMG Taseer Other KPMG KPMG Taseer Other KPMG
Hadi & Co. firms Hadi & Co. firms
Audit fee 2,486 3,147 2,260 2,778
Limited review, special reports and 2,145 - 1,950 -
other certifications
Out of pocket expenses 342 - 311 -
4,973 3,147 4,521 2,778


32. FINANCE COSTS

2022 2021 33.3 Relationship between income tax expense and accounting profit
2022 2021
Mark-up on:
- Short-term running finances 66,279 3,098 Profit before taxation 3,615,000 2,630,988
- Export refinance facility 18,701 13,589
- Short-term loans 22,813 204 Tax at applicable rate of 33% (2021: 29%) 1,273,176 762,987
- Long-term loans 70,222 216,179 Tax effect of permanent differences 63,478 7,411
- Interest on ROUA 82,850 46,760 Tax effect of final tax regime (278,194) (21,623)
Bank charges 202,944 34,938 Income subject to lower rate (15,055)
463,810 314,768 Effect of tax in foreign jurisdictions (148,137) (64,184)
Others 2,657 (28,277)
897,925 656,314
34. EARNINGS PER SHARE - basic and diluted

33. TAXATION - net 2022 2021 2022 2021
34.1 Basic
Current
- for the year 904,793 757,199 Profit after taxation attributable to owners of 2,424,148 1,758,588
Deferred (6,868) (100,885) the parent company
897,925 656,314
(Number of shares)
Weighted average number of ordinary shares
outstanding during the year 233,115,425 233,115,425
33.1 Income Tax assessments of the parent Company for various tax and accounting years 2004, 2005, 2008,
2011, 2012 and 2014 to 2018, taken as deemed assessments under section 120 of the Income Tax
Ordinance, 2001 were subsequently amended under section 122(5A) of the Income Tax Ordinance, 2001 in (Rupees)
which the learned Tax authorities has raised several demands. The Company has filed appeals before various
Earnings per share 10.40 7.54
appeal forums and has maintained a provision for any potential future liability.
33.2 The parent Company has filed its income tax returns for tax years 2019 to tax year 2021. Tax returns filed by
the parent Company are deemed to be assessed under Section 120 of the Income Tax Ordinance, 2001 * weighted average number of ordinary shares outstanding during the comparative year has been
unless selected for an amendment / audit by the taxation authorities. Tax return may be selected for detailed adjusted for issuance of bonus shares.
audit within six years from the end of tax year to which it relates and the Income Tax Commissioner may
amend the assessment.
34.2 A diluted earnings per share has not been presented as the Group did not have any convertible
instruments in issue as at balance sheet date which would have any effect on the earnings per share if the
option to convert is exercised.


35. CASH GENERATED FROM OPERATIONS

2022 2021 37. REMUNERATION TO CHIEF EXECUTIVE OFFICER, DIRECTORS AND EXECUTIVES
(Rupees in thousand) 37.1 The aggregate amounts charged in these financial statements in respect of remuneration including all
benefits to chief executive, directors and executives of the Group are as follows:
Adjustments for non-cash charges and other items Chief Executive Directors Executives
Depreciation 749,765 623,949 Officer
Amortisation 39,075 45,612
2022 2021 2022 2021 2022 2021
Depreciation of right-of-use assets 364,092 193,671
Profit on disposal of property, plant and equipment (45,946) (41,838) (Rupees in thousand)
Amortisation of government grant (27,429) (46,977)
Managerial remuneration
Provision for slow moving stock 69,782 195,571
and allowances 39,127 34,405 - - 472,457 364,264
Impairment loss on long term investment 15,784
Utilities 3,913 3,441 - - 43,067 36,426
Impairment loss on trade debts 47,365 32,551
Bonus / variable pay 47,020 41,381 - - 197,912 190,530
Gain on remeasurement of investment at FVTPL - (1,199)
Housing 17,607 15,482 - - 193,805 163,919
Interest expense - ROUA 1,509
Retirement benefits 3,913 3,441 - - 40,441 35,677
Finance costs 463,810 299,873
Meeting fee - - 6,250 3,500 - -
Retirement benefits expense (909) 78,937
Other expenses 3,965 849 205 3,689 293,271 188,109
1,676,898 1,380,150
115,544 98,999 6,455 7,189 1,240,953 978,925
Profit before working capital changes 5,291,898 4,011,138
Number of persons 1 1 6 6 143 120
Working capital changes
(Increase) / decrease in current assets
Stores, spare parts and loose tools (17,711) (11,055)
Stock in trade (2,576,640) (1,478,868)
37.2 The Chief Executive, two non-executive directors and certain executives of the parent company are also
Trade debts (1,387,139) 111,245
provided with Company maintained cars, residence and mobile telephones.
Advances (488,170) (140,971)
Trade deposits and prepayments (1,318) (135,218)
38. RELATED PARTY DISCLOSURES
Sales tax refundable 90,076 (90,076)
Other receivables 12,274 4,121
Related parties comprise the parent Company, entities with common directors, key management personnel,
(4,368,628) (1,740,822)
staff retirement funds, directors, major shareholders and key management personnel. The Group continues
Increase / (decrease) in current liabilities
to have a policy whereby transactions with related parties are entered into at commercial terms, approved
Trade and other payables 1,714,488 1,079,525
policy and at rates agreed under a contract/arrangement/agreement.
Sales tax payable - (11,586)
Contract liability (55,019) 124,322
1,659,470 1,192,261
Key management personnel are those persons having authority and responsibility for planning, directing and
2,582,740 3,462,577
controlling the activities of the Group. The Group considers its Chief Executive Officer, Chief Financial Officer,
Company Secretary, Non-Executive Directors and departmental heads to be its key management personnel.
There are no transactions with key management personnel other than their terms of employment /
2022 2021
entitlement.
36. CASH AND CASH EQUALIVENTS (Rupees in thousand)
Transaction with related parties other than those disclosed else where in the notes are disclosed below:
Cash and bank balances 1,137,335 3,042,473
Short term borrowings (3,027,565) (2,190,795)
(1,890,231) 851,678


39. PLANT CAPACITY AND PRODUCTION

Relationship with the Nature of transaction 2022 2021 2022 2021
Group
(Rupees in thousand) (Metric tons)
Parent Company Rental income 3,074 3,638 Actual production of plants 108,104 105,071
Rental paid 3,026 -
Dividend paid 313,247 250,398
39.1 The capacity and production of the Parent Company plants are indeterminable as these are multi-product
(No of Shares) and involve varying processes of manufacture.
Bonus Shares issued 15,662,363 12,519,890
40. NUMBER OF EMPLOYEES
(Rupees in thousand) 2022 2021
(Number)
Purchases 168,619 -
Associates Dividend paid 188,911 137,027 The detail of number of employees are as follows:
Annual subscription 2,000 2,000
Total employees of the Parent Company at the year end 859 788
(No of Shares) Average employees of the Parent Company during the year 824 755
Bonus Shares issued 9,445,560 6,851,000

41. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
The Board of Directors of the Group has overall responsibility for the establishment and oversight of the Group's
Staff retirement funds Expense charged for the year 78,070 64,414
risk management framework. The Group's activities expose it to variety of financial risks namely credit risk,
Payments to retirement contribution plan 73,107 112,510
liquidity risk and market risk (including foreign exchange risk and interest rate risk). The Group's overall risk
Contribution to defined benefit plans 22,365 92,669
management programme focuses on having cost effective funding as well as managing financial risk to minimise
earnings volatility and provide maximum return to shareholders
Key management personnel compensation: (Rupees in thousand)
41.1 Credit risk
Salaries and other short-term employee benefits 892,898 767,047
Contribution to Provident Fund 36,600 34,390 Credit risk represents the financial loss that would be recognised at the reporting date if counter parties failed to
Retirement benefits 4,062 18,743 perform as contracted. The financial assets exposed to the credit risk amount to Rs. 5.6 billion (2021: Rs. 5.2
billion) appropriately.
The Company's maximum exposure to credit risk as at the reporting date is as follows:
38.1 The following are the related parties with whom the Group had entered into transaction or have
arrangement / agreement in place: 2022 2021
Name of the Related Party Basis of association Aggregate % of
Shareholding Financial assets:
Deposits 57,099 57,741
ATC Holdings (Private) Limited Parent Company* 33.85% Trade debts 2,723,850 972,493
Pakistan Business Council Common directorship 0% Short term investments at FVTPL 1,324,795 1,001,199
Cherat Packaging Limited Common directorship 0% Bank balances 1,135,104 2,952,965
Other Receivables 273 18,080
5,241,121 5,002,478
* It is the ultimate parent company based on control model as provided under IFRS 10.


The maximum exposure to credit risk for trade receivables at the reporting Concentration of credit risk
date by geographic region was:
2022 2021
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities
(Rupees in thousand) in the same geographical region, or have economic features that would cause their ability to meet contractual
obligations to be similarly affected by changes in economic, political or other conditions. Concentrations
Local 1,292,913 446,239 indicate the relative sensitivity of the Group’s performance to developments affecting a particular industry. In
UAE 6,616 5,088 order to avoid excessive concentrations of risk, management focuses on the maintenance of a diversified
Canada 1,332,292 479,095 portfolio. Identified concentrations of credit risks are controlled and managed accordingly. Management does
Other region 92,029 70,777 not consider that it has any concentration of credit risk at reporting date. Following are the details:
2,723,850 1,001,199
2022 2021
The following table provides information about the exposure to credit risk for trade debts from
individual customers as at June 30, 2022: (Rupees in thousand)
Trade Debts
Gross Expected Net -Local 1,292,913 446,239
carrying credit carrying -UAE 6,616 5,088
amount loss amount
-Canada 1,332,292 479,095
(Rupees in thousand) -Other region 92,029 70,777
Banks 1,135,104 2,952,965
30 June 2022 1,091,361 122,686 968,676 Mutual funds 1,324,795 1,001,199
Current (not past due) 1,237,234 21,069 1,216,165 Deposits 57,099 57,741
1–30 days past due 290,421 4,592 285,830 Other Receivable 273 18,080
31–60 days past due 79,940 231 79,709 5,241,121 5,031,184
61-180 days past due 162,974 1,451 161,523
180-360 days past due 12,174 226 11,948
41.2 Liquidity risk
More than 360 days past due 2,874,104 150,255 2,723,850
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk reflects the
30 June 2021 268,733 8,253 260,570 Group's inability in raising funds to meet commitments. The Group manages liquidity risk by maintaining
Current (not past due) 84,721 13,691 71,030 sufficient cash and bank balances and the availability of financing through banking arrangements.
1–30 days past due 444,056 10,849 433,208 Management monitors rolling forecasts of the Group’s liquidity reserve which comprises of undrawn
31–60 days past due 260,488 63,038 197,450 borrowing facility and cash and cash equivalents on the basis of expected cash flows.
61-180 days past due 1,206 139 1,067
180-360 days past due 9,418 250 9,168
More than 360 days past due 1,068,623 96,221 972,493
Based on the past experience, consideration of financial position, past track records and recoveries, the Group
believes that the impairment on trade debts past have been adequately accounted for in these financial
statements.
The cash and bank balances represent low credit risk as major balances are placed with banks having credit
ratings of A1+ or above as assigned by PACRA or JCR-VIS and other reputed credit agencies.
Other financial assets are neither material to the financial statements nor exposed to any significant credit
risk. The management does not expect any losses from non-performance by these counterparties.


2022 The sensitivity of foreign exchange rate looks at the outstanding foreign exchange balances of the
Contractual Cashflows Company only as at the balance sheet date.
Carrying Total Contractual Within More than

amount Cash flows one year one year
2022
Rupees in AED in CNY in Euro in GBP in SAR in USD in AUD in CAD in
(Rupees in thousand) ('000) ('000) ('000) ('000) ('000 ('000) ('000) ('000) ('000)
Non-derivative
Trade debts 667,441 10,420.50 - - - - - - 543.90
Financial Liabilities Bank balance 1,676,289 4,864.05 - - - - 3,424.58 - -
Long-term borrowings 1,123,199 1,431,221 581,432 849,789 Trade liabilities (3,428,838) (2.06) (66.07) (25.51) (0.22) (0.11) (3,200.00) (20.56) (17,333.89)
Trade and other payables 7,014,984 7,014,984 7,014,984 - (1,085,108) 15,282.49 (66.07) (25.51) (0.22) (0.11) 224.58 (20.56) (16,789.99)
Lease liabilities 2,114,941 2,412,344 534,425 1,877,919
Short-term borrowings (including accrued markup) 4,963,162 4,963,162 4,963,162 -
2021
Unclaimed dividend 23,161 23,161 23,161 -
Deposit Payable 5,444 5,444 5,444 Rupees in AED in CNY in Euro in GBP in SAR in USD in AUD in CAD in
('000) ('000) ('000) ('000) ('000) ('000) ('000) ('000) ('000)
15,239,446 15,844,871 13,117,163 2,727,708
Trade debts 992,912 - - - - 3,179.15 - -

2021 Bank balance 429,171 - - - - 2,661.93 - -
Contractual Cashflows Trade liabilities (366,657) (6,683.12) (82.94) (144.94) (0.26) (0.14) (249.74) - -
1,055,425 (6,683.12) (82.94) (144.94) (0.26) (0.14) 5,591.34 - -
Carrying Total Contractual Within More than
amount Cash flows one year one year
(Rupees in thousand) The following significant exchange rates were applied during the year:
2022
Non-derivative Average Reporting
Financial Liabilities 1,599,000 1,626,358 745,006 881,352 rate date rate
Long-term borrowings 4,876,321 4,876,321 4,876,321 -
Trade and other payables 1,178,577 1,348,936 276,331 1,072,605 Rupees / USD 177.78 204.85
Lease liabilities 2,867,381 2,867,381 2,867,381 - Rupees / CNY 27.48 30.54
Short-term borrowings (including accrued markup) 21,202 21,202 21,202 - Rupees / AED 48.40 55.77
Unclaimed dividend 4,359 4,359 4,359 Rupees / CAD 140.71 158.65
Deposit Payable 10,542,481 10,740,197 8,786,241 1,953,957
2021
Average Reporting
41.3 Market risks
rate date rate
Foreign exchange risk
Rupees / USD 160.02 156.16
Foreign exchange risk arises mainly where receivables and payables exist in foreign currency. As at 30 June Rupees / CNY 24.18 24.33
2022 net financial assets of Rs. 1.35 billion (2021: Rs. 915.79 million) were denominated in foreign currency Rupees / AED 44.56 42.89
which were exposed to foreign currency risk. Rupees / CAD 125.23 126.87
As at 30 June 2022 if the Pak Rupee had strengthened by 5% against US Dollar with all other variables held
constant, profit before tax for the year would have been lower / higher by Rs. 67.96 million (2021: Rs.
45.79 million).


Interest rate risk 41.4 Reconciliation of movements of liabilities to cash flows arising from financing activities
At 30 June 2022 the Group had variable interest bearing financial liabilities of Rs. 3,846.5 million
(2021: Rs. 2,660.7 million), had the interest rates varied by 100 basis points (2021: 100 basis points) 2022
with all the other variables held constant, profit before tax for the year would have been lower / higher
Long term
by approximately Rs. 38.4 million (2021: Rs. 26.6 million), mainly as a result of higher / lower interest Other short
borrowings
Short term term
expense on floating rate borrowings. borrowings borrowings
including loan
classified as
used for cash including Lease Retained
current [including Total
management related liabilities earnings
related accrued
purpose accrued
markup] (refer
Details of the financial instruments, exposed to interest rate risk, based on the earlier markup
note 19)
of re-pricing or contractual maturity dates are as follows:
Exposure to Interest / Mark up rate risk
Balance as at 1 July 2021 2,190,923 665,637 1,211,284 1,607,812 5,703,120 11,378,776
Upto 1 Upto 3 More than 3 Total
month Months Months
Changes from financing cash flows
Repayment of loan - - (294,494) (576,323) - (870,817)
Financial assets Proceeds from long term loan - - - - - -
Amortisation of government grant - - - - - -
Bank balances 6,575 - - 6,575 New lease obligations - - - - - -

30 June 2022 6,575 - - 6,575 Proceeds from short term borrowings - 584,363 - - - 584,363
Dividend Paid - - - - (930,503) (930,503)

30 June 2021 3,209 - - 3,209
Total changes from financing activities - 584,363 (294,494) (576,323) (930,503) (1,216,957)
Financial liabilities
Other changes - interest cost
Long term finance - 1,123,199 - 1,123,199 Interest expense 66,655 44,643 - 50,965 - 162,263
Lease liabilities - 456,918 1,658,023 2,114,941 Interest paid (66,655) (44,643) - (50,965) - (162,263)
Short term borrowings 4,883,090 - - 4,883,090 Additions in Lease Libilities - - 805,544 - - 805,544
30 June 2022 4,883,090 1,580,117 1,658,023 8,121,230
Changes in running finance 827,832 - - - - 827,832
Exchange difference 1,128 - 392,606 121,176 - 514,910

30 June 2021 2,861,591 1,340,100 937,144 5,138,835
Total loan related other changes 828,960 - 1,198,150 121,176 - 2,148,285
Total equity related other changes - - - - 2,189,349 2,189,349
Balance as at 30 June 2022 3,019,883 1,250,000 2,114,940 1,152,665 6,961,966 14,499,453


41.5 Capital risk management 42.1 Segment revenue and results
The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going Core Segment - Food & Retail - Total
concern in order to provide returns for shareholders and benefit for other stake holders and to maintain an Food related products (cash and carry)
optimal capital structure to reduce the cost of capital. During the year, the Group's strategy was to maintain
leveraged gearing. The gearing ratio as at 30 June 2022 was as follows:
For the year ended 30 June 2022
2022 2021 Sales 27,140,312 18,385,296 45,525,608
(Rupees in thousand) Cost of sales (17,650,686) (14,671,503) (32,322,189)
Gross profit 9,489,626 3,713,793 13,203,419
Total borrowings 8,123,266 5,665,205
Cash and bank balances (1,137,335) (3,042,473)
Distribution expenses (5,915,197) (589,156) (6,504,3531)
Net debt 6,985,932 2,622,732 Impairment loss on trade debts (23,698) (23,668) (47,366)
Total Equity 9,472,740 7,273,440 Administrative expenses (1,109,920) (1,812,146) (2,922,066)
Total capital 16,458,672 9,896,172 Finance cost (202,394) (261,416) (463,810)
Other expenses (296,878) - (296,878)
Gearing ratio 42% 27%
Other income 644,158 1,896 646,054
Profit before taxation 2,585,697 1,029,304 3,615,001
The Group finances its operations through equity, borrowings and management of working capital with a view Taxation (616,173) (281,752) (897,925)
to maintain an appropriate mix between various sources of finance to minimise risk. Profit after taxation 1,969,524 747,552 2,717,076
Fair values of financial assets and liabilities

For the year ended 30 June 2021
Sales 23,417,728 11,170,705 34,588,433
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. Management considers fair value of Cost of sales (15,782,769) (9,053,249) (24,836,018)
financial assets approximate its fair value owing to their short term maturities and credit quality of counter Gross profit 7,634,959 2,117,456 9,752,415
parties. Selling and distribution expenses (4,643,829) (675,872) (5,319,701)
Impairment loss on trade debts (9,408) (23,143) (32,551)
42. OPERATING SEGMENT Administrative expenses (925,661) (518,299) (1,443,960)
Finance Cost (165,748) (149,020) (314,768)
The Group has the two operating segments namely core business and retail (cash and carry). The core
business providing wide range of food products to consumers. The retail (cash and carry) offer different Other operating charges (143,055) - (143,055)
products / supplies to restaurants, retailers and industrial customers based in Canada. Other income 122,294 10,314 132,608
Profit before taxation 1,869,552 761,436 2,630,988
The Group’s chief executive officer reviews the internal management reports of each segment separately. Taxation (448,681) (207,633) (656,314)
Profit after taxation 1,420,871 553,803 1,974,674


42.2 Segment assets and liabilities 42.6 Management considers that revenue from its ordinary activities are shariah compliant.
Core Segment - Food & Retail - Total 42.7 Non-current assets of the Group are located in Pakistan except non-current assets amounting to Rs.
Food related products (cash and carry) 3,705.725 million (2021: 2,269.983 million) are located outside Pakistan.
43. EVENTS OCCURRING AFTER BALANCE SHEET DATE
As at 30 June 2022
Segment assets 20,116,111 6,978,601 27,094,712 The Board of Directors of the Company in their meeting held on 8 September, 2022 has proposed a final
Segment liabilities 12,803,386 4,818,585 17,621,972 dividend of Rs. 5 per share (2021: Rs. 5 per share) amounting to Rs. 1,165.58 million (2021 : 932.5 million) and
bonus issue of Nil shares (2021 : 1 share for each 4 shares) for the year ended 30 June 2022. The approval of
As at 30 June 2021 the shareholders of the Company for the dividend shall be obtained at the upcoming Annual General Meeting for
Segment assets 16,373,959 3,855,936 20,229,895 the year ended 30 June 2022. The financial statements for the year ended 30 June 2022, do not include the
effect of the proposed final cash dividend which will be accounted for in the year ending 30 June 2023.
Segment liabilities 10,452,566 2,503,889 12,956,455
44. DATE OF AUTHORISATION

42.3 Segment assets reported above comprise of property, plant and equipment, stock in trade and trade debts.
These financial statements were authorised for issue by the Board of Directors of the Company on 8 September, 2022.
42.4 Information about major customers
The Group's customer base is diverse with no single customer accounting for more than 10% of net sales.
Sales to domestic customers in Pakistan are 62.25% (2021: 69.10%) and to customer outside Pakistan are
37.75% (2021: 30.90%) of the revenue.
42.5 Geographical Location
The Group's gross revenue from external customers by geographical location is detailed below:
2022 2021
Chief Executive Officer Chief Financial Officer Director
Domestic sales 36,644,222 32,194,639
Export sales 22,219,472 14,396,972
58,863,695 46,591,611
42.5.1 Region wise export sales are as under:
Middle East 645,620 574,247

Canada 20,640,328 12,788,723
Kingdom of Saudi Arabia 235,599 323,487
Europe/UK 484,905 431,962
Others 213,021 278,553
22,219,472 14,396,972

Notice of 51st Annual General Meeting Notice of 51st Annual General Meeting
Notice is hereby given that the 51st Annual General Meeting of National Foods Limited will be held on Thursday, 6. To consider and, if thought fit, to pass with or without modification(s), the following as a Special Resolution for
October 20, 2022, at 3:00 pm at Beach Luxury Hotel, Karachi to transact the following business. The the approval of Rent Agreement between ATC Holdings (Private) Limited-(ATCH) and National Foods Limited for
shareholders who wish to attend the AGM via video link facility may do so. use of ATCH Lahore premises.
Ordinary Business:
“RESOLVED THAT the Rent Agreement for use of ATC Holdings (Private) Limited Lahore premises to be entered
1. To confirm the Minutes of Annual General Meeting held on October 14, 2021. into by the Company with its parent Company for an indefinite period, is hereby ratified and approved as per the
details appearing in statement of material facts”.
2. To receive, consider and adopt the Audited Financial Statements of the Company for the year ended June 30,
2022, together with the Directors’ and Auditors’ Reports thereon, together with Audited consolidated financial 7. To consider and, if thought fit, to pass with or without modification(s), the resolution appearing below as
statements of the Company and the Auditors’ reports thereon for the year ended June 30, 2022. ordinary resolution to authorize Mr. Adam Fahy Majeed for holding of office of profit in the Company in terms of
Section 171 (1) (c) (i) of the Companies Act, 2017.
3. To approve and declare the dividend on the Ordinary Shares of the Company. The Directors have recommended
final dividend of 100% (Rs. 5/- per Ordinary Share of Rs. 5/- each), for the year ended June 30, 2022.
“RESOLVED THAT pursuant to the provisions of Section 171 (1) (c) (i) of the Companies Act, 2017, consent of
4. To appoint External Auditors of the Company for the ensuing year, and to fix their remuneration. The Board of Members be and is hereby accorded to authorize Mr. Adam Fahy Majeed for holding office or place of profit under
Directors, on the recommendation of Audit Committee of the Company, has proposed re-appointment of M/s the Company, as Executive Director of the Company, for the remaining term of the Board, at a remuneration,
KPMG Taseer Hadi & Co. Chartered Accountants as external auditors, for the year ending June 30, 2023. other entitlements and terms and conditions as may be determined by the directors and altered from time to
time, as per the Company’s policies”.
Special Business:
8. To transact any other business with the permission of the Chair.
5. To consider, and if thought fit, to pass the following resolutions as special resolutions, (a) to ratify and approve
the transactions carried out with related parties during the financial year ended June 30, 2022, and (b) & (c) to
authorize the Board of Directors to approve all related party transactions carried out and to be carried out during Statements under Section 134(3) of the Companies Act, 2017 in respect of special business contained in
the year ending June 30, 2023. Agenda Item Number 5,6,7 and is annexed to the notice being sent to the members.
a) “RESOLVED THAT the transactions, in which majority of directors are interested, carried out by the
company with the following related parties for the financial year ended June 30, 2022, be and are hereby
ratified and approved”.
By Order of the Board
ATC Holdings (Private) Limited- Parent Company
Karachi Fazal ur Rehman Hajano
National Foods DMCC- Subsidiary September 29, 2022 Company Secretary
b) “FURTHER RESOLVED THAT the Board of Directors of the Company be and is hereby authorized to approve all
related party transactions, in which majority of directors are interested, carried out and to be carried out with
any related party including the above-named related parties, on case-to-case basis, for the financial year ending
June 30, 2023, and till next Annual General Meeting of the Company”.
c) “FURTHER RESOLVED THAT the approval of transactions by the Board, as aforesaid, shall be deemed to have
been approved by the shareholders and the transactions for the year ending June 30, 2023, shall be placed
before the shareholders in the next Annual General Meeting for their formal ratification/approval”.

Notes: 4. Submission of Copies of Valid CNICs
1. PARTICIPATION IN THE AGM PROCEEDINGS VIA VIDEO LINK FACILITY Members, who have not yet submitted attested photocopy of their valid CNIC along with folio number, are
requested to send the same, at the earliest, directly to the Company’s Share Registrar.
In addition to in person meeting, the Company shall also hold its AGM through video link facility in pursuance to
Circulars notified by the Securities and Exchange Commission of Pakistan (SECP). The members/proxies 5. Changes in Members Addresses
interested to participate in the AGM through this facility, are requested to get themselves registered with the
Company at [email protected] by providing the following details: – Members are requested to notify any change in their addresses immediately to the Company’s Share Registrar.
Name of Company Folio/ CDC CNIC Cell Registered 6. E-Dividend

Shareholder name Number Number Number Email Address
The provisions of Section 242 of the Companies Act, 2017 require the listed companies that any dividend
payable in cash shall only be paid through electronic mode directly into the bank account designated by the
Video-link and login credentials will be shared with the members/proxies whose email containing all the above entitled shareholders. Accordingly, the shareholders holding physical shares are requested to provide the
particulars are received at the given email address by the close of business on October 18, 2022. Company’s Share Registrar, at the address given herein above, electronic dividend mandate on E-Dividend Form
provided in the annual report and also available on website of the Company. In the case of shares held in CDC,
The members can also provide their comments and questions for the agenda items of the AGM on WhatsApp the same information should be provided to the CDS participants for updating and forwarding to the Company.
Number: 0321-8200864 and email: [email protected]
7. Deduction of Income Tax under Section 150 of the Income Tax Ordinance, 2001
2. NOTICE OF BOOK CLOSURE
Pursuant to the Finance Act, 2022, effective July 01, 2022, the rate of deduction of income tax under Section
The share transfer books of the Company will remain closed from October 14, 2022 to October 20, 2022 (both 150 of the Income Tax Ordinance, 2001, from payment of dividend to a NON-FILER of income tax return is
days inclusive). Transfers received, in order, at the office of our Share Registrar M/s. CDC Share Registrar prescribed as 30% and for FILER of Tax Returns as 15%. List of Filers is available at Federal Board of Revenue’s
Services Limited, CDC House-99B, Block ‘B’, S.M.C.H.S., main Shahrah–e-Faisal, Karachi-74000, by the close of (FBR) website:http://www.fbr.gov.pk. Members are therefore advised to update their tax FILER status latest by
business on October 13, 2022, will be considered in time for the determination of the entitlement of the October 13, 2022.
shareholders to final cash dividend and to attend and vote at the meeting.
Further, according to clarification received from Federal Board of Revenue (FBR), with-holding tax will be
3. Appointment of Proxy and participation in the AGM determined separately on ‘Filer/Non-Filer’ status of Principal shareholder as well as joint-holder(s) based on their
shareholding proportions, in case of joint accounts.
a) A member entitled to attend, speak and vote at the Annual General Meeting is entitled to appoint another
member as his/her proxy to attend, speak and vote for his/her behalf. A proxy must be a member of the In this regard all shareholders who hold shares jointly are requested to provide shareholding proportions of Principal
Company. A proxy shall also have the right to demand and join in demanding a poll and vote on a poll. shareholder and Joint-holder(s) in respect of shares held by them to our Share Registrar, in writing as follows:
b) The instrument appointing proxy, together with the power of attorney or other authority under which it is Principal Shareholder Joint Shareholder(s)
signed, as the case may be, or a notarial certified copy of the power or authority, must be deposited at the
Registered Office of the Company situated at 12/CL-6, Claremont Road, Civil Lines, Karachi-75530, at least 48 Folio/CDC Total No. Name and Shareholding Proportion Name and Shareholding Proportion
Account # of Shares CNIC (No. of Shares) CNIC (No. of Shares)
working day hours before the time of the meeting. Form of Proxy is enclosed. Attested copies of valid CNIC or
the passport of the member and the Proxy shall be furnished with the Proxy Form.
c) Owners of the physical shares and of the shares registered in the name of Central Depository Company of
Pakistan Ltd. (CDC) and / or their proxies are required to produce their original valid Computerized National
Identity Card (CNIC) or Passport, for identification purposes, at the time of attending the meeting in person. In
case of a corporate entity, the Board of Directors' resolution/Power of Attorney, with specimen signature of the
nominee, shall be produced at the time of the meeting (unless it has been provided earlier).

The required information must reach our Share Registrar by the close of business (5:00 p.m.) on October 13,
2022; otherwise it will be assumed that the shares are equally held by Principal shareholder and Joint Holder(s). Consent for Video-Conferencing Facility
The corporate shareholders having CDC accounts are required to have their National Tax Number (NTN) updated
I/We, of being a member of National Foods Limited holder of Ordinary Share(s) as per Register Folio
with their respective participants, whereas corporate physical shareholders should send a copy of their NTN
certificate to the company or Share Registrar. The shareholders while sending NTN or NTN certificates, as the No. hereby opt for participation in the Annual General Meeting to be held on October 20, 2022 or any
case may be, must quote company name and their respective folio numbers.
adjourned meeting through video-conferencing facility at (Please insert name of the City)
The information received within the above specified time would enable the Company to deduct income tax at
the applicable rates from the payment of dividend if announced by the Company on October 20, 2022.
Members seeking exemption from deduction of income tax or deduction at a reduced rate under the relevant
provisions of the Income Tax Ordinance, 2001, are requested to submit a valid tax certificate or necessary
documentary evidence, as the case may be, latest by October 13, 2022. Signature of member
For any query/problem/information, the investors may contact the company and/or the Share Registrar at the
following email addresses:
Company: [email protected] 11. Circulation / Transmission of Annual Report 2022 and Notice of Meeting
Share Registrar: [email protected]
The Annual Report of the Company for the year ended June 30, 2022 has been placed on the Company’s
8. Unclaimed Dividend/Shares website at the given link: https://nfoods.com/investor-relations/financial-report/.
Shareholders, who by any reason, could not claim their dividend/shares, if any, are advised to contact our Share Annual Report 2022 and notice of AGM is also being circulated through post/courier to the members in
Registrar M/s. CDC Share Registrar Services Limited, CDC House-99B, Block ‘B’, S.M.C.H.S., main accordance with section 223(6) of the Companies Act, 2017 and electronically to members via email to all those
Shahrah–e-Faisal, Karachi-74000, to collect / enquire about their unclaimed dividend/shares, if any. shareholders whose email addresses are available with the CDC or the Share Registrar.
9. Postal Ballot/E-Voting Members who desire to receive annual report and notice of meeting onward through e-mail, instead of registered
post/courier, may submit their consent on the FORM available for the purpose on Company’s website.
In accordance with the Companies (Postal Ballot) Regulations, 2018, for the purpose of election of directors and
for any other agenda item subject to the requirements of section 143 and 144 of the Companies Act, 2017, 12. Conversion of Physical Shares into Book-Entry Form
members will be allowed to exercise their right of vote through postal ballot i.e. by post or e-voting, in the manner
and subject to conditions contained in aforesaid regulations. Pursuant to Section 72 of the Companies Act and directive issued by SECP vide its letter No.
CSD/ED/Misc./2016-639-640 dated 26 March 2021, all listed companies are required to pursue their
10. Video-Conferencing Facility in Other Cities shareholders who still hold shares in physical form, requiring them to convert their shares in Book-Entry-Form.
If the members holding ten percent of the total paid up capital or such other percentage of the paid-up capital In view of the aforesaid requirement shareholders of the Company are requested to convert their physical
as may be specified by the Commission, are resident in any other city, the company shall provide the facility of shares into book-entry form as soon as possible. Conversion of shares into book-entry form would facilitate the
video-conferencing to such members for attending annual general meeting of the company, if so required by shareholders i.e. readily available market for instant sale and purchase of shares, elimination of risk of loss &
such members in writing to the company at least seven days (7) before the date of the meeting. The Company damage, easy & safe transfer and less formalities as compared to physical shares. Shareholders may contact
will intimate members regarding venue of conference facility at least 5 days before the date of general meeting Share Registrar of the Company for assistance in conversion of shares. Guidelines for Conversion of Physical
along with complete information necessary to enable them to access such facility. Shares into Book-entry Form are available on the website of CDC Share Registrar Services Limited at the given
link: https://www.cdcsrsl.com/?jet_download=7429

STATEMENTS UNDER SECTION 134(3) OF THE COMPANIES ACT, 2017 The Company is and shall be conducting transactions with its related parties during the financial year ending June 30, 2023,
and subsequently, on arm’s length basis as per the approved policy with respect to ‘transactions with related parties’ in the
This statement set out all the material facts concerning Special Business under Agenda Item No 5, 6, 7 and be normal course of business or otherwise.
transacted at the 51st Annual General Meeting.
The related parties’ transactions in which majority of Directors are interested due to their common directorship and/or
AGENDA ITEM NO. 6 shareholding, therefore necessitate approval of shareholders. Accordingly, approval of shareholders is being sought to
SPECIAL RESOLUTIONS – TRANSACTIONS WITH RELATED PARTIES authorize the Board of Directors of the Company to approve all such transactions, in which majority of directors are
interested, carried out and to be carried out with such related parties during the financial year ending June 30, 2023, and
(a) Ratification and approval of transactions with related parties carried out during the financial year ended June till next Annual General Meeting, which transactions shall be deemed to be approved by the Shareholders.
30, 2022
The nature and scope of such related party transactions is explained above in the statement of under clause (a) of the
agenda. The related party transactions, requiring shareholders’ approval, conducted during financial year ending June 30,
The company carries out transactions with its related parties on an arm’s length basis, as per the approved
2023, shall then be placed before the shareholders in the next AGM for their formal approval/ratification.
policy with respect to ‘transactions with related parties’, in the normal course of business. All transactions
entered into with related parties require the approval of the Board Audit Committee of the Company, which is Disclosure of Interest of Directors: Mr. Abrar Hasan, Mrs. Noreen Hasan, Mr. Adam Fahy Majeed and Mr. Zahid Majeed are
chaired by an independent director of the Company. Upon the recommendation of the Board Audit Committee, interested in the agenda to the extent of their common directorships and/or their shareholding in respective related parties.
such transactions are placed before the Board of Directors for their approval. However, in terms of Regulation
15 of the Listed Companies (Code of Corporate Governance) Regulations, 2019 (the Code) approval of
shareholders is required for such transactions with related parties in which majority of directors of the company AGENDA ITEM NO. 7
are interested. The Companies Act, 2017 (the Act) also requires approval of such related party transaction by SPECIAL RESOLUTION – APPROVAL OF RENT AGREEMENT WITH ATC HOLDINGS (PRIVATE) LIMITED
shareholders where majority of directors are interested.
National Foods Limited (NFL) will be entering into a rent Agreement for the use of ATC Holdings (Private) Limited
In view of the above, following transactions, in which majority of directors are interested due to their common Lahore premises for an indefinite period (the Agreement). The Board approved the Agreement on September 08,
directorship, carried out in normal course of business on an arms’ length basis with related parties during the 2022 and proposed to seek approval/ratification by the members of the Company in the Annual General
financial year ended June 30, 2022, are being placed before the shareholders for their ratification and approval. Meeting.
As the majority of directors were interested in the arrangement due to their common directorship and
Name of Nature of Amount in Pricing shareholding, in ATC Holdings (Private) Limited, the shareholders are requested to approve the Agreement by
Relationship NFL, by passing special resolution in terms of Section 208 of the Companies Act, 2017.
related party Transaction Rupees ‘000’ Policy
The disclosure of information under Regulation 5 of the Companies (Related Party Transactions and
Arm’s length / Maintenance of Related Records) Regulations, 2018 [SRO 1194 (I)/2018, dated October 2, 2018].
ATC Holdings Parent Rental under approved
3,074
(Private) Limited Company income agreement with
related party
Arm’s length /
National Foods Subsidiary under approved
Net Sales 2,220,238
DMCC Company agreement with
related party
(b) and (c) Authorization for the Board of Directors to approve the related party transactions during the
financial year ending June 30, 2023, and till next Annual General Meeting

i) Name of related party; ATC Holdings (Private) Limited

i) Details of the office of profit proposed to be Mr. Adam Fahy Majeed as Executive Director of
ii) Names of the interested or concerned • Abrar Hasan • Adam Fahy Majeed held by the director; the Company on account of his appointment as
directors; • Noreen Hasan • Zahid Majeed “Chief Growth Officer”
iii) Nature of relationship, interest or concern
along with complete information of financial ii) Brief job description of the office to be held a) To implement board’s strategy;
or other interest or concern of directors, Common Directorship by the director; b) Manage overall operations and resources;
managers or key managerial personnel in c) Focal point of communication between
the related party;
board of directors and the management;
iv) Detail, description, terms and conditions of Renting office premises for the employees
transactions; of National Foods Limited iii) Remuneration of the director, including Rs. 5 million per annum plus inflationary
perks and benefits, pecuniary or otherwise; adjustments (if any).
v) Amount of transactions; Rs. 728,550 (Per Quarter)
vi) Timeframe or duration of the transactions v) Benefits to the company and its members as Expansion into international markets and to
Indefinite Period a result of such office of profit to be held by increase exports;
or contracts or arrangements;
the director; and
vii) Pricing policy; On arm’s length basis
a) To implement board’s International Strategy
viii) Recommendations of the audit committee; Yes b) Innovation, New Product Developments,
Route to Market Restructuring
ix) Any other relevant and material information c) Enter new geographical markets
that is necessary for the shareholders to Rent has been benchmarked against similar
d) Oversea Market and Sales Strategy
make a well-informed decision regarding the properties within the same vicinity
approval of related party transactions. e) Develop International Hubs
v) Period of holding of such office. Till next election.

Inspection: The Agreement relating to special business can be inspected by the shareholders from the date of issuance of
vii) Nature and extent of interest, if any, therein Mr. Adam Fahy Majeed himself and Mr. Zahid
this notice till the date of meeting at the registered office of the Company during usual business hours from Monday to
of every director, whether directly or Majeed being his father are interested in this
Friday (9.00 a.m. – 5.00 p.m.)
indirectly. matter.
AGENDA ITEM NO. 8

ORDINARY RESOLUTION – HOLDING OFFICE OF PROFIT
The Board of Directors of the Company in their meeting held on September 8, 2022, approved appointment of
Mr. Adam Fahy Majeed as Executive Director of the Company as “Chief Growth Officer” – International Division
– Exports in terms of Section 208 (1) (f) of the Companies Act, 2017. This appointment is subject to approval by
members of the Company in terms of Section 171 (1) (c) (i) of the Companies Act, 2017.
Accordingly, the Board of Directors proposed ordinary resolution pursuant to Section 171 (1) (c) (i) of the
Companies Act, 2017, to accord approval of the members in general meeting to the appointment of Mr. Adam
Fahy Majeed as Executive Director of the Company for holding of office of profit.
Material facts and disclosures, required under Para B(3) and C (2) of the aforesaid SRO 423 of 2018, are
provided herein below:

Dividend Mandate Dividend Mandate
Date__________________________ Letter format for CDS Shareholders
Folio No.__________________________
Name of Shareholder Date__________________________
F/H Name
Address CDS Account No.__________________________
Bank Account Details for Payment of Cash Dividend Name of Shareholder
(Mandatory Requirement as per the Companies Act, 2017) F/H Name
Dear Shareholder, Address
This is to inform you that in accordance with the Section 242 of the Companies Act, 2017, any dividend payable in cash shall
only be paid through electronic mode directly into the bank account designated by the entitled shareholder. Please note that
Bank Account Details for Payment of Cash Dividend
giving bank mandate for dividend payments is mandatory and in order to comply with this regulatory requirement and to avail
(Mandatory Requirement as per the Companies Act, 2017)
the facility of direct credit of dividend amount in your bank account, you are requested to please provide the following
information:
Dear Shareholder,
Details of Shareholder
This is to inform you that in accordance with the Section 242 of the Companies Act, 2017, any dividend payable in cash shall
Name of shareholder
only be paid through electronic mode directly into the bank accounts of entitled shareholder as designated by them. In
Folio / CDS Account No.
pursuance of the direction given by Securities and Exchange Commission of Pakistan (SECP), kindly immediately contact
CNIC No. your relevant CDC Participant/CDC Investor Account Services Department and provide them your bank mandate information
Cell number of shareholder including International Bank Account Number (IBAN) which is now mandatory for all cash dividend payments.
Landline number of shareholder, if any
Details of Bank Account In order to comply with regulatory requirement and to avail the facility of direct credit of dividend amount in your bank account,
Title of Bank Account you are requested to please provide requisite bank mandate information to your respective Participant/CDC Investor Account
Services Department immediately.
International Bank Account Number (IBAN) PK (24 digits)
“Mandatory” (Kindly provide your accurate IBAN number after consulting with your
respective bank branch since in case of any error or omission in given IBAN,
the company will not be held responsible in any manner for any loss or delay
in your cash dividend payment). Regards,
Bank’s name
Branch name and address
It is stated that the above mentioned information is correct and in case of any change therein, I / we will immediately
intimate Participant / Share Registrar accordingly.
Share Registrar Department
CDC Share Registrar Services Limited,
Share Registrar: National Foods Limited
Signature of shareholder
Note: This letter is being computer generated and does not require any signature.
You are requested to kindly send us photocopy of this letter immediately duly filled in and signed by you along with legible
photocopy of your valid CNIC at our address, CDC Share Registrar Services Limited, Head Office, CDC House, 99-B, Block B,
Main Shahrah-e-Faisal, Karachi. 74400, Pakistan.
Regards,
Share Registrar Department

CDC Share Registrar Services Limited
Share Registrar: National Foods Limited
Note: This letter is being computer generated and does not require any signature.

Glossary
�� ‫�� اور � ا� �� اور “�رى ا�ار” � � ِ� ر� �� ا‬ ‫ﭘﯿﺶ ﺑﯿﻨﯽ ﮐﺎ ﺑﯿﺎن اور ﻣﺴﺘﻘﺒﻞ ﮐﺎ ﻧﻘﻄﮩﺊ ﻧﻈﺮ‬
‫اور �� ذ� دار�� ں � �را �� ۔‬ � � � � ‫ا�� اور‬
ATL: Above the Line � � � ‫�� ر�ل‬
‫��ا‬ � ��‫�ا‬ � ‫� ا��ا� � � ��دہ‬ �
APLAC: Asian Pacific Laboratory Accreditation Cooperation ‫اﻋﺘﺮاف‬ ‫� �� ر‬ � �‫�� و‬ � � �� ‫�� وا� ��ت � ا�اف �� ۔‬
� � � ��
BTL: Below the Line ‫�رڈ اس � � وا� �م ا�اد � � ِ دل � � �� ادا �� ں‬ ‫ �� اور‬،‫� � ا�م اور �ر� � �ر�ل‬ �� ،‫ا�اط ِ زر � د�ؤ‬،� �
� � � �
‫� �ا� �ر�د� د��۔‬ � ‫� ا� �و� � �� اور �� ں‬ � �� ‫�� ى �ح �� ۔‬ � �� ‫�ر‬
CEO: Chief Executive Officer
�
� ‫�رے �گ � � �ح و �د � � �� م � �� اور �� ل‬ �‫ذر‬� � ‫��دوں � آ� � �� اور �� زى‬ � � ‫ا�� رو�رى‬� �
CSR: Corporate Social Responsibility
� ��
� �‫�ر‬ �
‫��ار‬/ �� ‫��دت‬ � �‫� ا‬ �
� ‫��ا �� وا� �ت � �� ا� ا�اد � ��ہ �� ۔ � ان‬ �� ،� ‫�م �ے �ں‬
� ‫ر� � � � �م �۔ �� ڈز � اس �ان‬
DDS: Door to Door Service
� ‫� ا� ر ِد ّ � � ا�ر‬
DMCC: Dubai Multi Commodities Centre
‫د� � �� اور ان � ا�� ار � ��۔‬� � ‫د� � �ر � �ہ‬
FSSC: Food Safety System Certification
HACCP: Hazard Analysis and Critical Control Points
HMA: Halal Monitoring Authority
HR: Human Resource
ID: International Division

��
ISO: International Standard Organisation � �� ‫ڈا��ز‬ ‫�رڈ آف‬
NFL: National Foods Limited
PNAC: Pakistan National Accredation Council
PR: Purchase Requisition

��
RDP: Rural Development Programs ��‫ڈا‬ � ��‫ا‬
��‫آ‬ � ��
SAP: System, Applications and Products in data processing
SIP: Sales Incentive Plan
SKU: Stock Keeping Units
SnOP: Sales and Operations Planning
TVC: Television Commercial
UNICEF: United Nations International Children's Emergency Fund

‫�‬ ‫��‬ ‫��‬
‫�‬
‫ا��ى‪� �� ،‬زى اور �� ر � �‬ ‫� � �رڈ � �‬
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‫�‬
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‫�� ‬ ‫�‬ ‫��‬ ‫��‬ ‫�‬
‫�� ‬ ‫ڈا��ز � �� ا�س‪ �� ،‬ا�� وا�رى �� ا�س اورا�� و�� اور ��ہ �)‪� � (HR & RC‬ر ا�س � ا�د �ا۔�م‬ ‫�ل � دوران �رڈ آف‬
‫ڈا�� ل �� وا� ��ت � � �‬
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‫�ر�ر� آ� وا�‪ ��،CL-6/12‬روڈ �ل ��‪� ،‬ا�‪�� ،‬ن �‬ ‫ا�س �رے‬
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‫�‬ ‫)ﭘﯿﭩﺮن آف ﺷﯿﺌﺮ ﮨﻮﻟﮉﻧﮓ(‬ ‫‪1‬‬ ‫‪Mr. Zahid Majeed‬‬ ‫‪Chairman/‬‬ ‫‪Appointed on‬‬
‫� �‬ ‫��‬ ‫‪Non-Executive‬‬ ‫‪April 20, 2022‬‬ ‫‪-‬‬ ‫‪-‬‬ ‫‪5/5‬‬ ‫‪3/5‬‬ ‫‪3/4‬‬
‫)��ن آف ��‬ ‫‪� 30‬ن ‪� � �� 2022‬ا� دارى � ��‬
‫ﮐﻮڈ آف ﮐﺎرﭘﻮرﯾﭧ ﮔﻮرﻧﻨﺲ ﮐﯽ ﺗﻌﻤﯿﻞ ﮐﺎ ﺑﯿﺎن‪:‬‬ ‫��( ر�رٹ � �� ۔‬ ‫‪2‬‬ ‫‪Mr. Abrar Hasan‬‬ ‫‪Chief Executive‬‬ ‫‪Re-elected on‬‬
‫)‪(Executive‬‬ ‫‪Officer‬‬ ‫‪October 14,‬‬ ‫‪-‬‬ ‫‪-‬‬ ‫‪5/5‬‬ ‫‪-‬‬ ‫‪4/4‬‬
‫�‬
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‫�ر�ر� �ر�( � ��ں‪،‬‬ ‫� � �� درج � )�ڈ آف �‬ ‫��‬
‫ڈا��(� ‪� 5‬‬ ‫�� ‬
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‫‪�� 2019‬ں � � ��ارى � �۔ �� ن ر�رٹ � �‬ ‫��‬ ‫��‬ ‫‪3‬‬ ‫‪Mr. Ehsan Ali Malik‬‬ ‫‪Independent‬‬ ‫‪Re-elected on‬‬
‫� �‬
‫‪� �� 33,800‬۔‬ ‫‪157.26 � 2022‬رو� � � �‬
‫� � �ح �‬ ‫‪Director‬‬ ‫‪October 14,‬‬ ‫‪P‬‬ ‫‪P‬‬ ‫‪5/5‬‬ ‫‪5/5‬‬ ‫‪3/4‬‬
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‫� �‬
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‫‪Director‬‬ ‫‪October 14,‬‬ ‫‪-‬‬ ‫‪P‬‬ ‫‪4/5‬‬ ‫‪-‬‬ ‫‪3/4‬‬
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‫‪2021‬‬
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‫��‬
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‫)آڈ��ز( � �ر � ان � دو�رہ � ّرى � � �رڈ‬ ‫� � ��ل ��ن‬ ‫ﻏﯿﺮ اﯾﮕﺰﯾﮑﯿﭩﯿﻮ اور ﺧﻮد ﻣﺨﺘﺎر ڈاﺋﺮﯾﮑﭩﺮز ﮐﮯ‬
‫�‬ ‫��‬ ‫‪Re-elected on‬‬
‫آڈٹ � � �رش � �� دى �۔‬ ‫ﻣﺸﺎﮨﺮے ﮐﯽ ﭘﺎﻟﯿﺴﯽ‬ ‫‪6‬‬ ‫‪Mrs. Saadia Naveed‬‬ ‫‪Non-Executive‬‬ ‫‪October 14,‬‬ ‫‪P‬‬ ‫‪-‬‬ ‫‪4/5‬‬ ‫‪5/5‬‬ ‫‪-‬‬
‫‪2021‬‬
‫�‬ ‫��‬ ‫��‬ ‫�‬
‫��‬‫�ا��ر �� وہ �‬ ‫�‬ ‫ڈا��ز‬ ‫آر� � ُرو � �رڈ آف‬ ‫�� ‬
‫اﻧﺪروﻧﯽ ﭘﮍﺗﺎل ﮐﻨﻨﺪﮔﺎن ) آڈﯾﭩﺮز ( ﮐﺎ ﻋﻤﻞ‬ ‫��‬ ‫� �‬ ‫‪7‬‬ ‫‪Re-elected on‬‬
‫� آف ا�� آڈٹ � ر� � ��‬
‫�‬
‫د� �ل � � �‬
‫� � ا�رو� ��ل � �م � �‬ ‫� �رڈ‬ ‫��۔اس � �‬ ‫ڈا��ز � ��ہ و� �� ّر �‬ ‫ا�� اور �د�ر‬
‫� �‬ ‫‪Mrs. Noreen Hasan‬‬ ‫‪Non-Executive‬‬ ‫‪October 14,‬‬ ‫‪P‬‬ ‫‪P‬‬ ‫‪5/5‬‬ ‫‪5/5‬‬ ‫‪4/4‬‬
‫��‬ ‫� �‬ ‫�‬ ‫��‬
‫ا�� اور �د�ر‬
‫� � �‬
‫ڈا��ز � � � � �‬
‫‪2021‬‬
‫� � �و� ‪�� M/s EY Ford Rhodes‬۔ ا�رو� ��ل‬ ‫ڈا��ز � ��ے �‬ ‫آف‬
‫��‬ ‫��‬ ‫��‬ ‫ا� �‬
‫)آڈٹ( � ��اہ‪� ،‬رڈ آڈٹ � � �اہ ِ را� ر�رٹ �� ۔‬ ‫��ت ا�م �ل ‪�30‬ن‬ ‫�� و� � �۔ڈا��ز� ��ے � �‬ ‫�‬ ‫‪Passed away‬‬
‫� �� دى � � ��۔‬ ‫�� اروں � � ��ن ‪� 36‬‬ ‫‪8‬‬ ‫‪Mr. Abdul Majeed‬‬ ‫‪Ex-Chairman‬‬ ‫‪on February 21,‬‬ ‫‪-‬‬ ‫‪-‬‬ ‫‪2/5‬‬ ‫‪-‬‬ ‫‪-‬‬
‫‪� � �2022‬‬
‫ﭘﺮووﯾﮉﻧﭧ اور رﯾﭩﺎﺋﺮﻣﻨﭧ ﻓﻨﮉز‬ ‫‪2022‬‬
‫� � �‬ ‫�‬ ‫� �‬
‫ا� �� اور‬
‫� � �‬‫�ز� � � �ا� �وو�� اور � � � � �‬ ‫‪Retired as a‬‬
‫� �م‬
‫�‬
‫� � �� ‬
‫� �‬ ‫�‬ ‫ﺑﻮرڈ آف ڈاﺋﺮﯾﮑﭩﺮز اور ان ﮐﯽ ﮐﻤﯿﭩﯿﻮں‬ ‫‪9‬‬ ‫‪Mr. Towfiq H. Chinoy‬‬ ‫‪Non-Executive‬‬ ‫‪Director on‬‬ ‫‪-‬‬ ‫‪-‬‬ ‫‪1/5‬‬ ‫‪-‬‬ ‫‪-‬‬
‫ا� �� ہ �� اور‬ ‫��ت � � �‬ ‫�� ِ �‬
‫ڈا��ز � �‬ ‫��م �� ‬ ‫‪October 14,‬‬
‫�‬ ‫�� ‬ ‫ﮐﯽ ﮐﺎرﮐﺮدﮔﯽ ﮐﺎ ﺗﺨﻤﯿﻨﮧ‬
‫� �� ن � ��ار ر� �۔ ‪� 30‬ن ‪ �� 2022‬وا�‬ ‫�� ز �‬ ‫�‬
‫‪2021‬‬
‫��‬ ‫�‬ ‫��‬ ‫� �‬ ‫�� ‬
‫��ت‬ ‫�ٹ‪� �8‬ز � ا��ں اور �ا� � �‬ ‫�‬ ‫�ل � � �� ت �‬ ‫�‬ ‫�‬
‫�ر�ر� �ر�( � �� ‪�� 2019‬‬ ‫�ِ�� )�ڈ آف‬
‫� �‬ ‫�‬
‫�ا� � � � ��۔‬ ‫�� رڈ � ا� �ر�د� � ��ہ �� ر ا� �� ۔‬
‫‪326‬‬ ‫‪Annual Report 2022 | 327‬‬

‫��‬ ‫�‬ ‫�‬
‫� � ا��ں �‬ ‫�‬ ‫�‬ ‫�‬ ‫��ں �‬ ‫• ادارے � ا�م � � �‬
‫�� ‬ ‫�� ‬
‫� �‬ ‫� �� ‬ ‫� � � و� � �� رو�ر �‬ ‫دوران ِ �� ل �ح ِ �د� � �ر �‬
‫�� ۔ � ا�س‬
‫� �� ‬ ‫�رڈ آف آڈٹ‬ ‫� �ك � � �‬ ‫� �� ‬ ‫� �رى‬ ‫��‪�� ،‬‬
‫� �‬ ‫�� ‬
‫ذر� �� ‬ ‫��‬
‫�� ‬
‫� � �� ‬
‫�‬ ‫� ��‬ ‫� �� ا� � � �‪ � � ،‬و� ��ى ��ں � ا� �� ۔��‬
‫�‪� ،‬رڈ � ر�رٹ �� ۔ ‪ �2021-2022‬دوران‬ ‫� � � � ��‬ ‫� �� ۔‬ ‫� �� ن �‬ ‫� � �� زى � �ا�‬‫�‪� � � ،‬‬ ‫�� س �۔‬ ‫�‬
‫��‬ ‫�‬
‫� � ا�س �� ا۔‬ ‫�� ا�ر‬ ‫� �ازن � �� ‬ ‫�آ�ات اور در آ�ات �‬
‫�‬ ‫�� ‬ ‫� �‬ ‫ا� �رى �رو�ر � � �‬ ‫ﻣﻨﺎﻓﻊ ﻣﯿﮟ ﺣﺼﮧ‬
‫� �� ‬
‫ا��‬ ‫��‬ ‫• �‬
‫�‬ ‫��ؤ � �ر� �ر � �ن � � � �۔‬
‫آڈٹ ﮐﻤﯿﭩﯽ ﮐﺎ ﺑﻮرڈ‬ ‫��‬
‫� � ��۔‬ ‫�‬ ‫��‬
‫ڈا��ز( � �� ‬
‫� � )ڈ�� ( و�ل �� ‬ ‫� ِ �� )�رڈ آف‬
‫�� ‬ ‫��‬
‫�‬ ‫��‬ ‫�م ا�ن اے �‬
‫�‬ ‫�‬ ‫�� ‬ ‫� �‬ ‫�ار � �� ر� � � � � � ‪ 5‬رو� � � � � �‬
‫� �‬
‫ر��رى ��(اس ا�‬
‫�‬
‫)ڈ��ا� �‬ ‫�‬
‫�رو�رى � اور �� ‬
‫• ا� �� ڈ�� ‪� �� ،‬و�‪ ،‬اور �� وہ �� اروں �‬
‫�‬ ‫�‬
‫ر�‬ ‫�� ‬ ‫�� اور ا�� رش � �۔� �‬ ‫�� ‬
‫��ہ �� ر�‬ ‫�‬ ‫�‬ ‫�‬ ‫� �‬
‫وا� �ر � �� ۔‬ ‫�‬ ‫�‬ ‫��‬ ‫��اواراور �و� � ا�ر � �‬ ‫� �� د �� ‬
‫�� ‬ ‫�‬ ‫� �رت �‬ ‫�‬ ‫�‬
‫ر�‬ ‫�ر� �‬ ‫� ‪(�� 92 :2021) �� 59‬۔‬ ‫� �‬‫�� ‬ ‫ر��رى ��(�م �رو�رى‬ ‫)ڈ��ا� �‬ ‫ا�ازى � �۔ �� ‬
‫ا� � ��ن اس ر�رٹ‬ ‫• �� ں � ا� � �‬
‫�� ا�ادو �ر� � �‬ ‫�� ‬ ‫�ؤں � ا�� ‬
‫اﻧﺴﺎﻧﯽ وﺳﺎﺋﻞ اور ﻣﺸﺎﮨﺮہ ﮐﻤﯿﭩﯽ )‪(HR & RC‬‬ ‫ادارہ ﺟﺎﺗﯽ اور ﻣﺎﻟﯿﺎﺗﯽ رﭘﻮرﭨﻨﮓ ﮐﺎ ڈﮬﺎﻧﭽﮧ‪:‬‬ ‫�� اور اى آر � )‪�� (ERP‬‬ ‫� ا�ر�‬
‫� �� ۔‬
‫� �� ‬ ‫�‬ ‫�‬
‫� ��‬ ‫� � �‬ ‫� اس � ��ى‬ ‫� ��‪� � ،‬دا�ل � ا�� ۔�رو�رى � � �رت �‬
‫�‬ ‫��‬
‫�‪�� ،‬وں � �م �� ہ �� اور ان � �رش ��‪� ،‬‬
‫� اور‬ ‫�� ر � �رآ�‬
‫� � ا�� ادارے � ا� ا�م اور �‬ ‫��‬ ‫�‬ ‫�� ‬
‫�‬ ‫�‬
‫ڈ��ا� ر��رى � �� ذ� داروں‪ ،‬ا��‬ ‫�‬ ‫� �� ‬ ‫�� ‬
‫�� ‬ ‫� �‬ ‫ﺑﻮرڈ آف ڈاﺋﺮﯾﮑﭩﺮز اور اس ﮐﯽ ﮐﻤﯿﭩﯿﺎں‪:‬‬ ‫�‬ ‫��‬
‫ا�� ے � �‪،‬‬
‫�ز� � �� ں � � � � �� ‬ ‫��ں )ادارہ �� ا�م � �� =�ڈ آف‬‫� درج � �‬ ‫�۔� � �� ‬ ‫��‬ ‫� و�� ۔‬ ‫� اور �� ا� ار�ن � ذ� دار�� ں � �‬
‫� �‬ ‫�‬ ‫�‬ ‫�‬ ‫� �‬ ‫�‬ ‫��‬ ‫� �‬ ‫��‬ ‫��‬ ‫�� ‬
‫� �‬ ‫� �‬
‫اور�� آف ا��‬‫�‬ ‫� ��ى‬
‫آ��‪� � ،‬‬ ‫� �� ‬ ‫اورا�� ‬
‫ڈا�� اور �‬ ‫� �‬ ‫ڈا�� اور �ر �‬
‫��‬ ‫ا�� ‬
‫ا� � �‬
‫ڈا��ز‪� ،‬‬ ‫ڈا��ز �ل دو �د �ر‬ ‫�رڈ �ت‬ ‫�ر�(ر� ��‪�‘)2019،‬ڈ’(� � در�ر �‪ � � ،‬اس‬ ‫��‬ ‫�ر�ر�‬
‫��‬ ‫� �‬ ‫�‬ ‫�‬
‫آڈٹ � ��ے � � �م ��ت اور ان � �رى � � ا�س‬ ‫ا�� ڈا��ز � � �۔‬
‫� �‬ ‫�� ا� �� ‪:‬‬‫�‬ ‫�� ِ �‬
‫ذ�‬ ‫�ض اور �ا� �� ‬
‫ا� �� ا�اج � �� ‬ ‫�‬ ‫� � �� رى �‬
‫�‬ ‫�‬ ‫�‬
‫اور ز ��دہ � ز ��دہ �� ‬
‫�� ۔‬ ‫ﻧﺎم‬ ‫درﺟﮧ‬ ‫� �� ۔ �� ت‬
‫�� ت � � ��ت � ��‪ ،‬اس � ��ں � ��‪�� ،‬ؤاور‬ ‫•‬ ‫� �� ۔ �‬ ‫��ں � � �‬ ‫�� ‬ ‫� و� � � �د � ��ں �‬
‫اﻧﺴﺎﻧﯽ وﺳﺎﺋﻞ اور ﻣﺸﺎﮨﺮہ ﮐﻤﯿﭩﯽ)‪(HR & RC‬‬ ‫� �‬ ‫��‬ ‫��‬ ‫��‬
‫�م � �‬
‫ا� ��ازى‬ ‫ڈا��ز‬ ‫�د�ر‬ ‫� �� ۔‬ ‫� � �‬
‫��ں �‬ ‫�وى �ں �‬ ‫� � ر� ��‪� ،‬‬ ‫� اداروں � �‬
‫ذر� �� ‬
‫ا��رات � ا�اج‪� � ،‬‬
‫�� ‬ ‫� �‬
‫�م � �‬ ‫�م ا�ن � �‬ ‫�� ‬ ‫� �‬
‫��‬ ‫�‬ ‫ا� ��ازى‬ ‫�‬ ‫� �� ‬ ‫ذر� اس �‬
‫�� ا�� د ��ں � �‬ ‫�ر� � ��ں اور �‬
‫��‬ ‫� �‬ ‫�� ‬
‫د� �ل � � �۔‬ ‫�‬ ‫� � �ب � ��ں � ��‬ ‫•‬ ‫�‬
‫ر�‬ ‫�م ا�ن اے �‬ ‫�م ا�ار � )� اى او(‬ ‫ڈا��‬ ‫ا�� ‬‫� �‬ ‫�� ا�� د �� رى � ��‬
‫ر�� ‬ ‫�۔� �آ�ى �ر�د� � �ض �‬
‫�� ‬ ‫��‬ ‫�‬ ‫� � ��ن ��‬ ‫�� اروں � �وں �‬‫��ں � �‬‫�� ا�ؤ� � �‬ ‫اورا�دى �� ر� �۔‬
‫ر�‬ ‫�ر� �‬ ‫��‬ ‫•‬
‫�� ‬ ‫ڈا��ز‬ ‫�ا�‬
‫� � اور‬ ‫� �� ‬‫� � �ر � � �‬ ‫�� ‪�� ،‬ت � � ��رى �‬
‫�� ‬ ‫�‬
‫�ر� �‬ ‫�‬ ‫�� ‬
‫�‬
‫ا�ؤ� � � �ل اور دا�ا� �� ۔‬‫��‬ ‫�‬ ‫�‬ ‫� � �س ادارے � �� ڈ�� اور � � �� ر�ر� �‬
‫�� ‬ ‫��‬ ‫� � �‬ ‫�‬
‫� �رڈ(‬ ‫�م زا� �� )��‬ ‫ڈا��ز‬ ‫ا�� ‬
‫� � �‬
‫��‬ ‫� و�‬ ‫� � درون ِ �� اور ر�ر� �� د � � ان � � �‬ ‫�ڈ��‬
‫� �� ‬‫� �� ت � � ��رى �‬ ‫�‬ ‫�‬ ‫�� ‬
‫�م آدم �� ‬ ‫� ا��ا� � �� ر�ر� � �‬
‫��رات �‬ ‫•‬
‫� ��د � �� اور �‬ ‫�‬ ‫��‬
‫�۔��و� �ر � �� اور � � � �‬ ‫� ��‬ ‫�� ‬
‫� � � � �ك �ہ �� ر‬ ‫� ��وى � � � اور اس �‬
‫� �� رہ در�ر �‪ ،‬ان � �ورت � �� ۔‬
‫ﺑﻮرڈ آڈٹ ﮐﻤﯿﭩﯽ‬ ‫� �۔‬
‫� �‬
‫� ا�ف �‬
‫��‬ ‫ﻗﻮﻣﯽ ﺧﺰاﻧﮯ ﻣﯿﮟ ﺣﺼﮧ‬
‫� �رڈ � �د �� ‪،‬‬‫� �ا� � ذ� دار�� ں � �را �� ‬ ‫�رڈ آڈٹ‬
‫�‬ ‫�‬ ‫ا�رو� دا�ہ �ر � �م �� ا�ر � در� � اور ا� �� ر‬ ‫•‬
‫��دى �ر � � �� اور � �‬
‫� � �� ت � � ِ �� اور �‬ ‫�� ‬ ‫� �‬ ‫��‬ ‫� �� ا�� ا � اور � �‬ ‫� �ا� �‬ ‫�ل � دوران �� ا� �‬
‫�� ‬
‫�‬ ‫� �� اور اس � �ا� � � �۔�رڈ � � � ��‬
‫� �� ‬
‫��ن � �ا� ��‪ ،‬ا�رو� �ول � �م اور �ات � ا�م اور ��ل‬ ‫�‬ ‫�‬ ‫�‬ ‫� �‬ ‫�‬ ‫� �� اور اس � � �ں � ‪6,369‬‬ ‫� ��رى ��ت � � �‬
‫�� ‬ ‫�‬ ‫� �‬ ‫�‬ ‫� � �� ‬
‫� �‬ ‫��‬ ‫� دى �۔�رڈ آڈٹ � � �‬ ‫ارا� � �‬ ‫��‬ ‫� �‬ ‫� �‬ ‫� �‬
‫�‬
‫�زو� �‬ ‫ا�� ت � �� اور‬ ‫�‬ ‫� � �� ۔ا�‬ ‫��‬ ‫�‬ ‫� � ڈ�� ‪� ،‬‬
‫�‬ ‫‪ �5,281‬رو�( ادا � � �‬ ‫� رو� )‪:2021‬‬
‫�‬ ‫��‬ ‫ڈا�� اور � �� ور ��ت � �� ‬‫ا� �د �ر � �‬ ‫�‬ ‫�‬ ‫�‬
‫)آڈ��ز( �� ‬
‫��وں � �اہ ِ را� �ورت‬ ‫�� و� ��ل ��ن‬ ‫� �‬ ‫�‬ ‫�‬ ‫�‬
‫�‬ ‫� ��‬ ‫� اور ا� � �� ۔ �� ‪ �2,290‬رو� )‪:2021‬‬
‫��‬ ‫� �‬ ‫� �� ۔‬ ‫�‬
‫� �� ‬ ‫� �� ‬
‫آ� ا�ؤ� �‬ ‫� �د�رى �� ۔ �‬ ‫� �‬
‫‪ �2,068‬رو�( �ز ِر �د� � � �� ت � �آ� اور �ذ� � �‬
‫��ں‬
‫‪328‬‬ ‫‪Annual Report 2022 | 329‬‬

‫�� ‬ ‫ا� �و � �ر �‪ ،‬ر�� ‬
‫�‬ ‫� �‬ ‫�‬
‫ا��رز’’ � �� ‬ ‫ز ��دہ ��ر اور �� ِ ا�د‘‘�و � � �� ‬ ‫� �� ا�ل � ‪25‬‬ ‫�� ‬ ‫‪� � (of Early Childhood Development=ECD‬ز� �م‬ ‫��دت �� وا� �� اور�‬ ‫� �‬ ‫د� � � � �م �‬ ‫� �� وغ �‬
‫�‬
‫�� ‬ ‫�‬ ‫�‬ ‫ر� � اور � �‬ ‫�د � � ��ر �� ا� �� ز �‬
‫� �ى � � آ� �� ارادہ ر� �۔‬ ‫� � ��وں در�ں‬ ‫�� ا�ام �� ۔ اس ا�ام � � �‬ ‫� �� ا�رڈے ��‬‫�� ‪ �2019 �� ،‬اوا� �‬ ‫ا� آ� وا� �و� �‬
‫�� ‬ ‫�‬ ‫�‬
‫ا� �ا‬ ‫� ��ف �� ‬ ‫�‬ ‫�‬ ‫�‬ ‫� � �� ‬‫�� ۔ا� � �‬ ‫�� ‬
‫ﻣﺎﺣﻮﻟﯿﺎﺗﯽ ﺗﺤﻔﻆ‬ ‫�‬ ‫� �� وا� ��۔ ذ� دار �رو�رى �ز ِ � �‬ ‫ڈ��ا� ��‬ ‫ا� ا� � �‬
‫� ��۔� اور اُ�� ‬ ‫� دو�رہ �ل �‬
‫�� ‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬
‫��‬ ‫� �‬
‫�� ‬ ‫� ��‬ ‫��‬ ‫� � �ڈز � �‬ ‫� ِ �� ۔اس � � �� آ� �� ‬ ‫� �م �� ں � � � �ف �و� � �ظ � �زوں � � اس �‬ ‫� � �� ‬ ‫� �‬‫� ا� �‬ ‫�� ى � ڈ�� ں �‬
‫�‬
‫�‬ ‫�‬ ‫� �‬
‫��ارى اور �� ں �‬ ‫� �‬ ‫� �ڈز �‬ ‫��ن �‬
‫�‬ ‫� ور� وا� �� )‪� �� (WWF‬ون �� ‬ ‫��۔� � � �وِڈ ‪ �� 19‬و� ئ ��‬ ‫� �� ِ � ر� �‬ ‫�‬ ‫�� اور ا�م � �� دے �۔‬ ‫� �و�ں � �‬
‫��‬ ‫�‬ ‫� � �‬
‫� �۔ � و� ً �� آ� وا� �ں �‬ ‫�را �� ا� � س � �� ‬ ‫��ت � �� ‬ ‫�رى اور �ت � �� ا�ا� � �� اور �� ‬ ‫�� ل ر�‪ �� ،‬اس � �‬ ‫� ‪�� 18‬ں � �‬
‫� و� � � � ڈے � �‬ ‫� ��‬
‫ا� �ف �ے ��ل � �‬ ‫�‬ ‫� �‬ ‫�‬ ‫��‬
‫�� و�ں � ��‬ ‫� �‬ ‫�۔� �“ �� آر ��’’ )‪� (#LetsPlantOurFuture‬‬ ‫‪� 2021‬‬ ‫� � ‪� � TEVTA‬و� � ا�� ‬ ‫اس � �وہ � �ڈز � �‬
‫�‬
‫��‬ ‫�� ‬ ‫��‬ ‫�‬ ‫ا��ط �‬ ‫��ؤ � � �‬ ‫� � ا��ت � �� وِڈ ك � � �‬
‫ا� )‪(MBR‬‬ ‫�� رى �‬ ‫� �� ۔اس �ل �� ‬ ‫�� اور ذرا� �‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬
‫�‬ ‫� ��وو � �اروں �دے‬‫� � اس و�� ر �ون � � �‬
‫�� ا� �م دو�رہ �وع � د �� ۔‬ ‫ذر� ‘�ز� دا ا�� ’)‪Closing the‬‬ ‫�‬ ‫)‪� �(Xcelerate‬‬
‫�� ‬ ‫� �‬ ‫��‬ ‫�‬ ‫� ��‬ ‫�‬ ‫�‬ ‫� �‬
‫ا�� وا� �� ‪ �240‬رو� � �� وا� ا �� ‬ ‫�� ن � �� ں �‬ ‫�‬ ‫�‬ ‫�‬
‫� ا �� ز � �� ورك � �‬ ‫�‬ ‫�‬‫�‬ ‫�‬ ‫�‬
‫�‬ ‫� � �‬ ‫��ت اور اس � ا�ر‬
‫� �رى �‬ ‫ا��ر‬‫�� ‬ ‫‪� � (skills gap‬‬
‫�� ‬
‫)‪� � � (ETP‬ر �� ل �� د �� اور �� ن �ا��ا�� و ��‬ ‫�� وا�ں � � � � ا� � ��۔‬
‫�� ‬ ‫�‬
‫ذر� �� ا�ا� � �� اور اس �‬ ‫ا� �� ‬ ‫ذر� �‬
‫�� ‬ ‫� � �‬ ‫� �‬ ‫� ��‬ ‫�� ‬‫اس � �‬ ‫� �ر � �‬
‫ز� ِ‬ ‫� �� ڈ�� رز � �‬ ‫�� ‬
‫��ر � �� ۔‬ ‫�‬
‫ا� ‪� /‬ھ ا��ا�� و � ا� � �ا� �� ‬ ‫�‬ ‫�‬ ‫� �‬
‫� �‬ ‫�‬ ‫� � �� ن اور �اد ��د � � ذ�� د �ں � ��‬ ‫�� ا�اد �� ۔‬ ‫�‬
‫� �� د‬ ‫ا�� ارى � �م اس �ت � �‬ ‫ا� �ح � �‬ ‫ﮐﺎروﺑﺎری اﺧﻼﻗﯿﺎت‬
‫� � ��‪� ،�� ،� ،‬ن ِ ��‪�� ،‬ں � �‬
‫ا�‬ ‫ا�ا� �� ‪� � ،‬‬ ‫ﺳﺴﭩﯿﻨﯿﺒﻠﯿﭩﯽ‬
‫� � ا�اج � ا�ار آ�� ں � �را �� ۔ � �� ر�� ں �‬ ‫� � ا�ا ئ � � �� ِ � ر� � اور اب � �رى � � �‬ ‫�‬
‫�زو ��ن ��د � � � �� ر �� ‬ ‫�‬
‫�‬ ‫� �‬ ‫� �رت �� ‬
‫ا� �ود� �� ا‪� ،‬ارى‪ /‬ا�اج و �وج‪،‬‬‫�� ا�‪� ،‬م �‬ ‫�‬
‫ذر� �� ‬ ‫� ا�� ا� ا��‬‫�ز� � � �رو�رى � ِز � �‬ ‫اور اس � �م‬ ‫�‬ ‫�‬ ‫�‬
‫�ادرى � � � � � �ر �‪ � �� ،‬ا�� ‬
‫� �‬ ‫�‬ ‫�‬ ‫�‬ ‫��ا �� وا� �ں �ا� ا��ہ‪،‬‬ ‫�۔�� ڈے �� و�� ا�اض � دوران � �‬ ‫�‬ ‫�‬ ‫�‬
‫� �� ‪��،‬ہ و�ں �‬ ‫� � �� ‬ ‫�ر‪ � ،‬اور � �‬ ‫ا� ��‬ ‫��رات � ��ار ر� � ��۔ �را �� ئ ا�ق �‬
‫��رات اور �ا�� ‬ ‫� �‬ ‫�‬ ‫�‬ ‫�� ۔�را � � �‬
‫� � � �� ں � د�� ر �� ان � ا�‬
‫�‬ ‫�‬ ‫�‬ ‫�ر� �� ‬ ‫�‬ ‫��ں � �� ‬ ‫د� �ل �� وا�ں اور ا� �‬ ‫�‬
‫�� ‬‫ا� ��ہ �م ��د �‪ � ،‬اور �‬ ‫� �� ۔ � � ا�م � �‬ ‫د�� رے ادارے � �� ز� � � � اور �� ن �‬ ‫� �‬ ‫�‬ ‫�‬
‫ا� �و� �ر �� ا� �� آزادى � �ور ت �‬ ‫اور � �‬ ‫ا� �� ا� � � �� زوں �۔ اس � ذ�‬ ‫� �‬
‫�‬
‫��ں � �� ‪� ،‬و�د اس � �‬ ‫� � �ن � �� اور � � �ح �م �� ۔ وہ �رو�رى ا��ں �‪ ،‬ا�‬ ‫��‬ ‫�‬
‫�� ‬
‫�� ‬
‫� � �ا�م‬
‫� � �‬ ‫� �‬ ‫� � � ذ� دار�� ں � اور � � � �‬ ‫�ز� � � �‬ ‫� �‬ ‫�ازن ��ار ر� �۔‬
‫ا� � � �ر‬
‫� �‬
‫��(��ت � �‬ ‫زر �� )��ن‬
‫� ر� ��‪ ،‬ا� � ِ ّ‬
‫�‬ ‫�‬ ‫�‬ ‫�‬ ‫�ز�‬ ‫�‬ ‫� �‬
‫�ا��ا�� و �� ا� � �و��رز �ر � � ��۔‬ ‫د�۔ و��‬ ‫�ز� � ا�ل �� وا� �ں � ‪ 20‬و�� ‬ ‫��‬ ‫� �‬
‫� �‬ ‫�‬
‫�ر�ر� �ر� � �� ‬ ‫� ذ� دار�� ں � رو� ڈا� � ��۔ ا�‬ ‫� ��‬ ‫�‬ ‫� ��‬ ‫�‬ ‫�‬ ‫��‬ ‫�‬ ‫� �‬
‫�‬ ‫��‬ ‫�‬ ‫ا� �ل � � ��ں � �� ۔و��‬ ‫� �� اور �‬
‫ِ‬
‫ﺻﻮرت ﺣﺎل‬ ‫ﺑﻨﯿﺎدی ﺧﻄﺮات اور ﻏﯿﺮ ﯾﻘﯿﻨﯽ‬ ‫ا� � �‬
‫��دى �و �۔‬ ‫ا�� رو�� ّ ‪�� ،‬م � �‬
‫�‬
‫ا� �� د‬ ‫�‬ ‫�‬
‫� � ��ں � �ا� � وا� �‬ ‫� �ڈز � �‬ ‫��‬
‫�‬ ‫ذر�‬‫�� اى �� ‬ ‫��ں � ��۔�� ‬
‫�� ‬ ‫�� وا� �ں �‬
‫��‬ ‫)� � � اردو �‬
‫�ص � دوران ِ �ل‬ ‫‪،‬‬ ‫�‬‫�‬ ‫�� ل � �� ر� �‬
‫�� رو�ر اور �‬ ‫�۔� ��دى �ر � �د �‬‫� �‬ ‫� “��” �(� ا�اد � ر�‬ ‫�‬
‫� �� ‬ ‫�� اور ا�دى �‬
‫ﺻﺤﺖ و ﺣﻔﺎﻇﺖ‬ ‫�‪� � � ،‬‬ ‫��رى �‬ ‫�� ہ �ادر�� ں � �� ‬ ‫ا� � � �� ۔ �� ا�� ‬ ‫� �� وا� �د � ا�ل �� وا� �‬
‫� �ر�ل �‬ ‫�� ‬
‫�� ‬ ‫�� ۔ �‬‫�� ‬ ‫د�‬ ‫� �‬
‫� �‬ ‫��‬ ‫� دا� � )��‬ ‫ا� � � ا�� ا�� ا�ل �‬ ‫� �زم �‬
‫� رچ � �� وپ‬ ‫�‪�� ،�� ،‬ل �رى �رو�رى �� ‬ ‫�� اور‬‫� ورا� �‬ ‫� �و� اور �� ‬ ‫�ل � �و�ام � �و� �‬
‫�� روں � ا�د � � � ر� د�� ۔ �د � �ح � ا�اط ِ زر � �‬ ‫��‬
‫�� ‬ ‫�‬
‫� � �‪،‬‬ ‫� �ا� �� ر� �۔ � � � �د ادارے �‬ ‫اس ا� � �‬ ‫�‬ ‫�ا��ر ��ن �� ‬ ‫�‬ ‫ا� �ا�ہ اور‬ ‫ا ّول � �� د�(۔�� ‬
‫� ا�� ۔ �� ً‬‫��ں � �� اور �رو�ر �� ‬
‫�‬ ‫�‬ ‫�‬ ‫�� وا� �و�ا م ��ہ �ادر�� ں � �ا� � �� ‬
‫۔�د‬
‫�‬
‫آ�� ‬
‫� �‬ ‫�‬ ‫ا� �۔‬ ‫�� ‬ ‫ا�ا�ت �‬
‫�‬ ‫��ار �� ‬ ‫� �� ‬ ‫� � ا� �ر�د� د�� اور ��ل �‬ ‫�� ا� �‬ ‫�‬ ‫� ��‬ ‫د� � � � �‬ ‫��‪�� ،‬ل � �� وغ �‬ ‫� �‬
‫ز� ِ ا�م �۔�رچ ‪� � 2022‬‬ ‫�‬
‫�ا� ر��ر � � � �‬ ‫� �ر � �‬
‫��‬ ‫�‬ ‫�‬
‫�‬
‫�� ِ�� دى �۔‬ ‫ا�� وا�‪ ،‬ا�� و�� )‪� � � (HR‬‬ ‫� �ض ادا � ر��۔ ا�‬ ‫� �وى �ر � �و�‬ ‫�ڈز � �د ا�� )�د � ِ �ر( � ا�د �‬ ‫� ��‬
‫��‬ ‫� �‬ ‫� �‬
‫�‬ ‫�‬
‫�زم دو� � ِ �‪ � � � �� ،‬آ� � ا��‪� ،‬ات اور‬ ‫��‬ ‫� � �ڈز � �‬ ‫� �ا�� ح � �� رى �و�ں‬
‫ا� �ر �زار � �ں �‬
‫�ر�� اور دو��ار ا�‬ ‫� � � ��ل � �� وا� �‬
‫�‬ ‫�‬ ‫�‬ ‫� �‬ ‫��ن � ��ا�ں �‬
‫وا�ت � � و� ا��ت اور آ� ��ھ � �ات و وا�ت � ��ت‬ ‫�‬ ‫� � � ��م �م �� اور �� دت ڈا� �‬
‫ا�� ردو�ش � � � � � � � �� ا� � �� اور درآ�ى‬ ‫آ�ن �‬ ‫�‬ ‫�‬ ‫۔�� وا� آ��‪ ،‬ا�‬ ‫ا�� ئ � �� اور �و� �� ‬ ‫�‬
‫� � �‬ ‫� � �‬ ‫�‬ ‫��ى �� اس � �‬
‫� �� ‬
‫��ں‬ ‫�� ‬
‫� �ر�ل � و� �‬ ‫�� ‬ ‫�ا� � � �۔��ں � �‬ ‫� �� ‬
‫��‬ ‫� �‬‫�ا� �� وا�ں � � � �‬ ‫� �� ڈ�� و�ام � �� ا�� ‬ ‫ا� � روزہ � �‬
‫��‬ ‫� � �ا� �ا�)‪� �� (CLF‬ا� � �۔�� ‬
‫��‬ ‫�‬ ‫� َ��ف � �� ۔‬
‫�‬ ‫�د� � ��۔‬
‫� �‬‫�� ‬
‫� ا�� در آ�ات �م �ل � ��ں‬ ‫� �‬ ‫�� ‬ ‫��اوار �‬
‫� �� ۔ �� ‬ ‫�‬
‫‪73‬و� ��ہ � �� ۔‬ ‫� � ��ن �‬
‫�� ‬
‫��ن �ن‬ ‫� ��ں � �ود �ا� � در �‬ ‫� �� ا�� ل �‬ ‫�‬
‫� و �� ‬ ‫د� ��‬ ‫� ّہ ئ ارض � �ارت اور �� ‬
‫�� ‬ ‫�‬ ‫�‬
‫�� ۔‬
‫ا� ��‬ ‫�� ا�م � �� ف � اور اس رخ � �‬ ‫� � اُ�� )‪ � ،� � �� (Ubuntu Care‬ڈے �� و�‬
‫�‬
‫� ��‬ ‫��‬
‫�‬‫�� ۔ � � �ف روا� �‬ ‫� ا� � � � �‬ ‫� �وش � �‬ ‫��رے �‪ ،‬آ� وا� �ں � � � � و‬
‫� � � ا�� ر � اس ّ �‬ ‫� ��‬
‫�� اور ّ� �ڈل آف اَر� �� ڈ�� )‪Finnish Model‬‬
‫� ا� ا� �دار ادا �� ورت �۔ � � ��ل دو�‬‫�داب �� ‬
‫ورا� � اور �� ا�م � �م � �� ورى � � �‬
‫‪330‬‬ ‫‪Annual Report 2022 | 331‬‬

‫� �‬
‫�ر� �‬
‫� � ئ اور�ں � در �‬
‫��ن �رے‬
‫�� ‬
‫� � � اور‬
‫� �ور ��ت � �را �‬
‫� �‬ ‫اﭼﺎر‬ ‫ﺳﺎدہ ﻣﺼﺎﻟﺤﮯ اور اﺟﺰأ‪:‬‬ ‫ﻻﻧﭻ ﮐﯿﻤﭙﯿﻦ‬
‫� � �� ۔‬ ‫� � �ا� � �‬ ‫�� ں �‬
‫�رٹ �‬ ‫�‬ ‫�� ‬ ‫�‬
‫ا�‬
‫ا�ر��ں � �‬ ‫��ژن‪ ،‬ڈ � � ��‪� � �� ،‬‬
‫� ��‪ ،‬اى۔�م اور اِن �‬ ‫•‬ ‫ﻗﯿﻤﺖ ﮐﯽ ﻣﺴﺎﺑﻘﺘﯽ ﻣﺎرﮐﯿﭧ ﻣﯿﮟاﭘﻨﯽ‬ ‫ا�‬‫��ا �� ‬ ‫� آ�� ‬ ‫� ر�� رے �‬
‫� �‬ ‫�‬ ‫�� ‬ ‫�‬
‫�� ‬ ‫�ر� � �� ارى �‬ ‫ذر� �� اور‬‫�‬ ‫��ط ‪360‬ڈ�ى �ن �‬ ‫� ��ژن‪ ،‬ڈ � � �� ذرا�‪ ،‬ر�� ‪�� ،‬‬‫و� اور �� وع � � � �‬ ‫�‬
‫�� و� � �‬
‫و� � �� ‬ ‫ا� ��ى � �� ‬ ‫‪� � �A1‬‬ ‫�رى �ذ� �‬ ‫�‬ ‫ﺣﯿﺜﯿﺖ ﺑﺮﻗﺮار رﮐﮭﻨﺎ‪:‬‬
‫�‬ ‫�‬ ‫�� ہ ا� ��۔‬ ‫�‬ ‫�‬ ‫�‬
‫� � � اور اس �‬ ‫�� ر اور �رف �‬ ‫ا� �� رٹ �‬ ‫�م � �� ‬ ‫� �‬ ‫اس ز�ے �‬ ‫� � ا�رى ذرا� �� ۔ �را ��‬ ‫�� اور � � ��ا�روں �‬ ‫��‬
‫�ر� � � � � � ��‬ ‫� �خ �چ � �ار � رو‬
‫� � ر� � ��۔‬
‫�‬
‫� � � ا�ل �م �‬ ‫� �م �ے � �‬ ‫�‬ ‫�‬ ‫� �‬ ‫�‬
‫� �‬
‫�ر�‬
‫�‬
‫او� در� � ‪� /‬ردہ �� ر� وا� �ا�ز ‪�� ROBs‬۔وہ‬ ‫�ا� ‘آج ر� �’ �وف ��ژن �� ‬
‫ذر� � �� ا�ر � �� اور � �‬
‫��دى �� زار‬ ‫�� و�ام � �‬ ‫•‬ ‫�‬ ‫� �‬
‫� �‬
‫� ��‬
‫�‬ ‫د��ب �� اور �ردہ �و�ں �ز ��دہ ��ر� ��‬ ‫� �‬‫� � � �� ‬ ‫��ر� � وى روڈ‬ ‫�� ‬ ‫�‬ ‫��‬
‫� � ز ��دہ د �� وا� �ر�ں اور‬
‫ا��ى �رف �وا ��‪� ،‬را �‬ ‫�� ‬ ‫� �� ن �‬ ‫� � �� ل ‪� 2021‬‬ ‫� �رو�ر)‪ �� (LMT‬ز�ے � ا�س � �� ‪�� ،‬‬
‫�‬
‫�‬ ‫�‬ ‫��‬ ‫�‬ ‫�‬ ‫د�۔‬ ‫� �‬‫��ر � ز ��دہ �� ‬
‫� ا�� ر� � �� اور�ردہ �وش ��ت � �‬ ‫�‬ ‫ذر� �� ‬
‫� ا�� )� ��ڈ( ڈ � � �� رم ��‪ �� ،‬اور �� ‬ ‫��‬ ‫آز�� اور ر�� ۔‬ ‫��‬ ‫��‪� ،‬و�‪� ،‬ا�� اور �ر� �� آ� � �‬
‫�‬ ‫�� ‬ ‫�‬
‫��‬
‫�ور��ں‬ ‫ا�� ز � �� د �ں �‬ ‫�‬ ‫� ��‬ ‫� �‬
‫�‬ ‫�‬ ‫�‬ ‫� �‬ ‫��۔اس � � ڈ � � �� ِ �� ر�‪،‬‬ ‫� �� ‬
‫��ا �‬ ‫وا� � �‬
‫�� ‪ /‬ا��‬ ‫�‬ ‫�‬
‫� �� ر�‬
‫�‬
‫)�� ( � �� ار ا�اج � �� ر � � �� ‬ ‫�ت ِ �� و�‪ ،‬ا� �ام‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬ ‫•‬ ‫� ��‬ ‫�‬
‫�ل � �ا�أ � � � � )�خ �چ( �� ا � � و� � � �‬
‫�ى‬ ‫�‬
‫د��ب � � ز ��دہ �ز� � � � � �‬
‫�‬ ‫��‬ ‫�‬ ‫��ان اور ��ن �‬
‫� ��‬ ‫� �‬ ‫��‬ ‫ذر�‬ ‫� �‬
‫� �‬ ‫��‬ ‫�‬ ‫�‬ ‫� ��‬ ‫اور � �ك �‬ ‫� �‬ ‫��‬
‫ا��ى � ا� اب � � ��‬ ‫� �‬ ‫� �۔ اس �ل � � � � ��ن � �‬
‫�‬ ‫�ور��ں ) �( اور �ڈ ��ز � �� ‪� �10‬‬ ‫�‬ ‫�� ا� � �� رو�رى � )‪ (ROB‬ر�‪� � � �� ،‬‬ ‫ا� � � �‬
‫� �‬ ‫� �‬ ‫� � � د�م � دى۔‬
‫� �‬ ‫� � �‬ ‫�� وں � �ر اور �ں �‬
‫� � �‬ ‫�� ر�� ا�ل � �دت � �وغ د �� ۔‬ ‫�ر� او� در� � �ا�ز � �ف � �ر� � ��۔ �ا ��ں � ��‬
‫�ر�‬ ‫�� ‬ ‫�‬
‫�‬ ‫�� ‬ ‫�‬ ‫ا� �أت �ا� �‬
‫�� اور �رو�رى � )‪(ROBs‬‬ ‫� �‬‫��ِ� �‬
‫ا�رات � � �‬ ‫�� اور �ہ �ب �‬ ‫�‬ ‫��ا‪،‬‬‫ا��‪� ،‬‬ ‫� ‪� �4‬ں � �� ‬ ‫�‬
‫�‬ ‫�‬
‫� ‪� ��5‬ور� )�� ( اور �د‬
‫� �‬
‫�ر� �‬ ‫��‬ ‫�� ‪� � ،‬‬ ‫�� ‬ ‫� �� ر� ��‪� 44 ،‬ار �ا�ں‬ ‫� ‪�28‬زاروں �‬‫ا� �وں �‬ ‫•‬ ‫� �� ق � � �� خ �چ � ��ں‬ ‫� �� ‬ ‫��ا � � � � ‪ �9‬زا� �ر� � �ا� �ل �� ‬
‫�‬
‫ز ��دہ � ز ��دہ �� ‬
‫�‬ ‫��‬ ‫�‬
‫��‬ ‫�� ‬ ‫�‬
‫‪� ��101‬ا�۔آز�� اور �‬ ‫� �ف �� ف‬ ‫�‬
‫‪ �SKUs‬ز�د� � �� ى۔‬ ‫�‬‫�‬ ‫ا�� ِ‪� � ،�� ،‬ك‪ � �� ،‬اور ا��ام ا�ل � �۔ �� ‬ ‫�‬ ‫��ب‪،‬‬
‫��ت �� ں �۔‬ ‫�� ‬ ‫�‬ ‫� �‬ ‫�‬ ‫�‬
‫�ر� � �و�� و د�۔‬ ‫�‬
‫ذر�‬ ‫او� ا�رات � و�� ز � � �� ان � � ز ��دہ‬ ‫��ب � �‬
‫ﮐﯿﭽﭗ‬ ‫��‬
‫�� ا� �� رو�رى �� زى )‪�� (JBP‬ہ ا�� ‬ ‫� ��‬ ‫�� ‬
‫�‬ ‫�� ‬ ‫�‬ ‫�‬ ‫�‬ ‫ا� دى‬ ‫�ر� �� اور ا�ر � � � � � � ز ��دہ ا�رى‬
‫� ِ �ورت ��‪� ،�� ،‬ں � �ے � ��‬ ‫�‬
‫�ر(� �� ‬ ‫)ا�ر �‬ ‫� �رت‬ ‫� ا� �� زاروں �‬ ‫� �ا� آ� )‪� (KLI‬‬ ‫� � ��ى ��‬ ‫آ�ز‪ � �� ،‬آ� �� اور �‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬
‫ا��ى �‬ ‫�‬ ‫•‬ ‫�‬
‫� �‬
‫�‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬
‫� �رى �د‬ ‫� �اروں �‬ ‫� �ا� �� اور ��ى ا�� ا� �‬ ‫� �‬ ‫ا��زى‬
‫ا� �‬‫�� ‬
‫�رف �وا�� ‬ ‫�‬ ‫ا��ى �زار �‬ ‫�‬ ‫�‬
‫�� ‬
‫ر�۔� � اور ا� �ام‬
‫�‬
‫�� ا� ز ��دہ �� د‬ ‫� � � � و� �‬
‫�‬ ‫�‬ ‫�ر� ��‪ �� ،‬ا�ر � � �� اور �ر� � �� ‬ ‫�‬ ‫�‬ ‫�‬
‫� �‬ ‫�‬ ‫�‬ ‫� �‬ ‫�‬ ‫ڈ��ا� اور ا�� ‬
‫�� اور ا�� وڈ� رول‬ ‫�ر� � �ف � � �� ‬
‫��دى �رٹ �‬
‫ا��ى � واؤ� ز �ر ِ ا�م‬
‫� �‬
‫د� � � �‬
‫�� ‬ ‫��۔اى۔ �م � �� وغ �‬ ‫�ر� � � ِز ز�� ‬ ‫�� ا� �� ‬ ‫��‬ ‫�۔ �� آں‪�� ،‬‬ ‫� � �� ‬
‫� �� ‬
‫�‬
‫�‬ ‫��‬ ‫��‬ ‫�� ا��ں �‬ ‫� �� ‬ ‫�‬ ‫�� ‬
‫آؤٹ‪ ،‬دو�ں � آ� �� آ�ز � �ل �ا �‪ �� ،‬ا� �ذ�‬ ‫�� ‬ ‫�‬
‫� � �۔‪�56‬ار �ا�ں � �ف � � �ف ‪� ��101‬‬ ‫�‬ ‫ا� ��ط ��ر� �� ‬
‫ذر�‬ ‫�� ۔اس �ر� � � �‬ ‫�‬ ‫� روز �ل ر� اور �� ‬
‫� �� ‬ ‫�� ‬ ‫� �‬
‫� � �م �� ۔‬ ‫� �� ‪� � ،‬‬ ‫�ں � آ� �� ے ز�وں �‬
‫�‬ ‫� ر�‪ ،‬ا�ر �‬ ‫� �� ‬ ‫� ڈ �� و�� ‬ ‫� �‪� � ،‬‬ ‫�را د�� ‬ ‫�� ‘آج ر�‬ ‫�رے � � �ا�� ۔�م �ے ر�� ‪� � ،‬‬
‫�� ۔‬ ‫�‬
‫�‬ ‫�‬ ‫��‬
‫�� اور اى ��س � �ا�‬ ‫��ں‪� � �� ،‬‬ ‫��دى �‬
‫��‬ ‫�و�‪� � ،‬‬ ‫�’ � د� � � ر� �۔�ر� �� اس �ر�� اور �ط � ِ �‬
‫ﮨﻤﺎرے ﻟﻮگ‬ ‫ﺑﯿﻦ اﻻﻗﻮاﻣﯽ‬
‫�رے �گ �را � � �ا ا�� ۔� �م اور � �ح � ��ت � �‬ ‫�� ۔‬ ‫�‬
‫��‬ ‫� �م �� ر� � �� ۔‬
‫� �‬ ‫�‬ ‫�‬ ‫�� ‬ ‫� دا� ��۔‬ ‫� ر�� اور � �زاروں �‬ ‫�رے �� ِ �� زاروں �‬ ‫�‬
‫�� و� اور‬ ‫�� ‬
‫�� ۔و� � � د�� ‬ ‫� �� گ �ر‬ ‫��‬ ‫� �‬ ‫�‬‫�‬ ‫��‬
‫��‬ ‫�� ا�� ‬
‫��‬
‫��‬ ‫�‬
‫� ر� �� ڈز � �‬ ‫ا� ذ� �‬ ‫��ت د��‪� � ،‬‬‫�� رو�رى � �‬ ‫� ��ن � �� ‬ ‫�� ‬
‫��‬ ‫�ى‬ ‫��دہ �زاروں � ��‬ ‫�� در آ� � ��ں �‬
‫)�� ا� � �‪ِ �� ،‬‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬ ‫�‬ ‫��و��‬ ‫��‬ ‫•‬
‫� ِ � � اور �ردہ � �ؤ اور �رو�ر � در �� ‬‫�زاروں � � ا� راہ � �‬ ‫� �‬ ‫�‬ ‫�‬
‫�ر� اور �‬ ‫�ورت � �� ا�ر �ا�� ت ز ��دہ د�� ‬
‫د�‬
‫�‬ ‫�� ر� � ��‬ ‫�� اور ر�ن( � �� رى �ل �‬
‫�‪ � � � �� ِ � ��10‬دے �‬ ‫� � �� ‬ ‫�‬ ‫�‬ ‫� � ��‬ ‫��‬ ‫� ا�� ‪� �� ،‬د ا�رز �‬ ‫اور �� ر � �رف � �� ‬
‫� �‬ ‫�‬ ‫��‬ ‫��د ر�۔‬ ‫ذر� � ِ � �‬
‫� ا� � ّر�� ں � �‬ ‫��دى �� ں �‬ ‫�د� � � � �‬ ‫�� ۔ �� و�� و� �ا� آف � �ر ��‪�� ،‬‬ ‫��‬
‫�۔�� ز� اور‬
‫� ��‬ ‫� � �رزات ) � � � ��ں(� �� رى � �‬ ‫� � �‬ ‫�‬
‫�‬ ‫� �� ‬ ‫��‬
‫� � � � دو‬‫�� ر�رى � �� اس � � � �� ‬ ‫��ون‪ ،‬وال �رٹ‪ ،‬اى� اور �رے ا� ا�ر�� اى ��س‬ ‫ا�� ا �‬
‫�� ‬ ‫ذر� � � اور اى۔��س � ان � �ا� �� ۔‬ ‫� اور �� ت � � �۔‬
‫�‬ ‫� �‬
‫��‬ ‫��‬ ‫�‬ ‫�د �ر �� ‬ ‫� �� ۔‬ ‫� اپ �‬ ‫� �‬
‫�‬
‫ا� �ى �� ارا‬ ‫� � � � ا� � ڈ�� ‬
‫�‬ ‫� ��‬ ‫�‬ ‫�� ‬
‫�‬ ‫�‬ ‫�‬ ‫� � �� ‬ ‫�‬ ‫�� ‬
‫��ى۔‬ ‫�‪ �� :‬اور �‬ ‫�‬ ‫�� ‬
‫�� ‬
‫�‬ ‫�‬ ‫� � � �� ى’ )�ن ‪ � (2022‬ڈ �‬
‫�� ‬
‫•‬ ‫�‬
‫� � �� ر � � �� رم � �� ہ ��ى �ر�د� � ا�روں‬
‫� ر�� رٹ �‬
‫�� ى ا�� رول آؤٹ � � �‬
‫�‬
‫�� ‬
‫�‬
‫� �‬
‫ا� ا�� ڈ � � �� اور �ت ِ �� ‬‫�� اور ا� �‬
‫� ��‬
‫�‬
‫�‬ ‫�� ‬ ‫�‬ ‫�‬ ‫� �‬ ‫�� ۔اس � � �ڈز‬ ‫ا� �ى � �‬ ‫� �ھ � �ر�د� د�� اور �� ‬
‫��ں � ا� � �� وغ �‬‫� �� ‬ ‫� �ل �‬ ‫�ر� � � �� ا�ا�ت �‬ ‫�� ا� � ر�� آ� �� اور‬ ‫�� ر�۔‬ ‫�‬ ‫�‬
‫د�‬ ‫� ��‬ ‫�‬
‫� �� ا� �‬
‫�‬
‫��اور ��ن � ا ّول � ر �� ‬
‫� �‬ ‫� ��‬ ‫ر�� دور ِ �� ‬
‫�� ‬
‫��‬ ‫�‬
‫اور � �� ؤس آف �� ‬
‫ا� ڈ�� ا� ادارے‬ ‫� �� ا� � � �‪ � � � � ،‬ا� � �‬
‫��دى ��‬ ‫�‬
‫��‬
‫�� ‬ ‫�‬
‫� �� دہ �� ا�م � �م � �� رى � �۔� �‬‫�‬ ‫�آ�� د�� م ��ں‬ ‫�‬ ‫�� ‬ ‫� �رٹ �‬ ‫� �ا� � �ر � اس � � �‬
‫��د ڈا�۔‬
‫� ��‬
‫‪332‬‬ ‫‪Annual Report 2022 | 333‬‬

‫ڈاﺋﺮﯾﮑﭩﺮ ز ر ﭘﻮرٹ‬
‫اس �� ل � � �وپ � ا� � �� ا�اد و �ر � �� درج �‬
‫ذ� �‪:‬‬
‫� �‬
‫رو�� ‬
‫�‬ ‫ر� ��‬ ‫�‬
‫اے َون ﺑﯿﮕﺰ اﯾﻨﮉ ﺳﭙﻼﺋﯿﺮز اﻧﮑﺎرﭘﻮرﯾﭩﯿﮉ‬ ‫ﺑﻨﯿﺎدی ﮐﺎروﺑﺎر‬ ‫ﮔﺮوپ‬ ‫�� ا�ل‬ ‫��‪� �� ِ � ،‬ارى � �� ‪� ،‬رٹ �‬ ‫دو�رہ � �‬ ‫ﻣﻌﺰزﺣﺼﺺ داران‬
‫�‬ ‫�‬ ‫��‬ ‫� ��‬ ‫� ��‬
‫��دى � �‬
‫��‬ ‫� اور ا� ا�رات � اور �ر �� و�� ا� � �‬‫� �� ‬ ‫��‬ ‫��‬ ‫��‬ ‫�‬
‫‪Change‬‬ ‫‪FY21‬‬ ‫‪FY22‬‬ ‫‪Change‬‬ ‫‪FY21‬‬ ‫‪FY22 Change‬‬ ‫‪FY21‬‬ ‫‪FY22‬‬
‫�‬ ‫�‬ ‫�‬
‫� �ڈز��)‘�’( � ڈا��ز � �� ‪ �� ،‬ر�رٹ � ��‬
‫� � � �� رى‬ ‫��۔ � آ�د � � �� ‬ ‫� � � دو�رہ �ا� �‬
‫� ا�م ِ �ل‪�30‬ن ‪� � 2022‬‬ ‫�� س � ر� � �� ‬
‫‪65%‬‬ ‫‪11,171‬‬ ‫‪18,386 16%‬‬ ‫‪23,417 27,141‬‬ ‫‪32%‬‬ ‫‪34,588 45,526‬‬ ‫�� و�‬
‫�رى � اور �� د� ‪� �� 2023‬ل � �� ۔� �‬ ‫�‬
‫�‬ ‫��‬ ‫��ہ اور ��‪�� ،‬ل �ہ � �� ت �� ۔‬‫��ہ �‬‫�‬
‫‪55%‬‬ ‫‪2,398‬‬ ‫‪3,714‬‬ ‫‪29%‬‬ ‫‪7,354‬‬ ‫‪9,267‬‬ ‫‪33%‬‬ ‫‪9,752‬‬ ‫‪12,979‬‬ ‫�� ‬ ‫ا �� رى� �ر� �ر � روك دى � اور �� آ�د � �� ل‬
‫�ل �ل �دارى‬ ‫��‬ ‫ﮐﻤﭙﻨﯽ ﮐﯽ ﺑﻨﯿﺎدی ﺳﺮﮔﺮﻣﯿﺎں‬
‫‪43%‬‬ ‫‪900‬‬ ‫‪1,289‬‬ ‫‪19%‬‬ ‫‪2,042‬‬ ‫‪2,433‬‬ ‫‪26%‬‬ ‫‪2,942‬‬ ‫‪3,717‬‬ ‫�� ‬ ‫�� ا� دو�رہ �رى �� ارادہ ر� �۔دوران ِ � �‬ ‫� ��‬
‫اور � و � � ر�و�ں � و� � �آ�ى �رو�ر �رزت � �‬ ‫�‬
‫�‬ ‫)�( � �ر ر�‬ ‫ا�� ردو �ش �� ‪ ،‬ان � � �‬
‫�و� ��‬
‫�‬
‫� “�” � �ا� �م � � �‬
‫‪35%‬‬ ‫‪554‬‬ ‫‪748‬‬ ‫‪41%‬‬ ‫‪1,573‬‬ ‫‪2,216‬‬ ‫‪38%‬‬ ‫‪1,759‬‬ ‫‪2,424‬‬ ‫�� از ��‬
‫� � وا� �� و� � ��۔‬ ‫۔ �� درا� �� ر �‬
‫� اور �و� �� ۔‬
‫‪-‬‬ ‫‪-‬‬ ‫‪-‬‬ ‫‪-‬‬ ‫‪6.7‬‬ ‫‪9.5‬‬ ‫‪-‬‬ ‫‪7.5‬‬ ‫‪10.4‬‬ ‫�� )رو�(‬
‫اے َون ﺑﯿﮕﺰ اﯾﻨﮉ ﺳﭙﻼﺋﯿﺮز اﻧﮑﺎرﭘﻮر ﯾﭩﯿﮉ‬ ‫ﮐﺎروﺑﺎری ﮐﺎرﮐﺮدﮔﯽ ﮐﺎ ﺟﺎﺋﺰہ‬
‫‪-1.3%‬‬ ‫‪21.5%‬‬ ‫‪20.2%‬‬ ‫‪2.7%‬‬ ‫‪31.4%‬‬ ‫‪34.1%‬‬ ‫‪0.3%‬‬ ‫‪28.2%‬‬ ‫‪28.5%‬‬ ‫�� ‬
‫� � � ا�ات � �ط � � �� رو�ر � ‪65‬‬ ‫�رو�ر � �ر �‬
‫‪-1.0%‬‬ ‫‪8.1%‬‬ ‫‪7.0%‬‬ ‫‪0.2%‬‬ ‫‪8.7%‬‬ ‫‪9.0%‬‬ ‫‪-0.3% 8.5%‬‬ ‫‪8.2%‬‬ ‫�� ‬
‫�� ِ �� ۔�رو�ر � �� ا�رز � �‬
‫�‬ ‫ﻋﻤﻠﯽ اور ﻣﺎﻟﯽ ﮐﺎرﮐﺮدﮔﯽ‬
‫�‬ ‫و� �� دہ ا�ر‬ ‫��‬
‫‪-0.9%‬‬ ‫‪5.0%‬‬ ‫‪4.1%‬‬ ‫‪1.4%‬‬ ‫‪6.7%‬‬ ‫‪8.2%‬‬ ‫‪0.2%‬‬ ‫‪5.1%‬‬ ‫‪5.3%‬‬ ‫�� از ��‬ ‫��‬ ‫�‬ ‫�‬ ‫ﮔﺮوپ‬
‫� � ز ��دہ �� ا�ا�ت اور ا�اط ِ زر�‬‫� �ش � � ا�را۔اس � � �‬ ‫�‬ ‫�‬
‫�‬ ‫�‬ ‫� � �‬ ‫�‬
‫� �‬ ‫� �‬ ‫�‬
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‫ر� � � روا� �ول � �� ‬ ‫� � �ول � �‬ ‫ﻧﺌﯽ رﯾﺴﯿﭙﯽ ﻣﮑﺴﺰ ﭘﯿﮑﯿﺠﻨﮓ ﮐﯽ ﺗﻌﺎرﻓﯽ ﻣﮩﻢ‬
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‫��ارى‬ ‫� �‬ ‫��ن �ط آ�� اور �� ‬
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‫�� ا�ل � �� ‪ � ،‬اور ڈ� � �� ۔‬
‫‪334‬‬ ‫‪Annual Report 2022 | 335‬‬

‫ﭼﯿﺌﺮﻣﯿﻦ ﮐﯽ ﺟﺎﺋﺰاﺗﯽ ر ﭘﻮرٹ‬ Form of Proxy
I/We of
� � � �
� ��
being a
�� ‫�( � �� ا� �ح �� و�د‬ ��) � � � ‫��ے �� ر‬
!��
member of National Foods Limited holding ordinary shares as per Registered
� �
� �‫� اور � ّرہ و� � �� ر� �۔ اس � �وہ � � �� ا��ا‬ ‫ﻧﯿﺸﻨﻞ ﻓﻮڈز ﮐﮯ ﻟﺌﮯ ﺗﺎر ﯾﺨﯽ ﺳﺎل‬ Folio No./CDC A/c No. (for members who have shares in CDS)
� �‫� ا‬
‫�� زور � �� ا �۔‬ �
�
‫زر �� )��ن‬ ّ ِ � �‫ �رے � �ر� � �ل �۔ � � ا‬2021-22 ‫�ل‬ hereby appoint Mr./Mrs./Miss of
�
� ��
� � ��‫� �� اور �� ر � ر‬� ‫� �م ��ت اور� ِّ��ں‬� � ‫��( �رى‬
� �� (full address) or failing him/her
� � � � � �‫ا‬
�‫� ڈ�� ا‬ � �� ‫�� ت �� اس‬ � ��
� �� 2.4 �� ‫� �� رو� � ز ��دہ � ا� � ِ�� ر‬50 Mr./Mrs./Miss of
‫��ں � �� ر� � ��۔‬� � ‫��ں‬
‫رو� � ز ��دہ � ر ��رڈ �� ۔‬
(full address)
‫ﺑﻮرڈ ﮐﺎ ﺟﺎﺋﺰہ اور ﮐﺎرﮐﺮدﮔﯽ‬

(being member of the Company) as my/our Proxy to attend, act and vote for me/us on behalf at the 51st
‫ﮐﻤﭙﻨﯽ ﮐﯽ ﻣﺎﻟﯽ ﺟﮭﻠﮑﯿﺎں‬ Annual General Meeting of the Company held on October 20, 2022 and/or any adjournment thereof.
�‫��ر� � � ا� �دار ادا � ر‬ � � ‫�� رڈ اور اس � ��ن)�� ( �ر�ر‬
�
� � � � �‫ا� اور �ل ر‬ � � �� ‫�� ل � � � ا� �ر�د� اور‬ As witness my/our hands seal this day of 2022.
‫ �رو�رىذ� � اور�ى‬،‫� �� اور� �ان�� او�ت � �ى �� ى‬
�� 58.9 � � � �
�‫ � � �و‬،� �� ‫� �� رو� � آ‬
Signed by in the
‫� � � ر� � ��۔‬ � �‫� �� ِ� � ��ار‬ �
�‫ا� �ا �ل �۔�� و‬ � �� 26
� � � � ‫ � �� ا�� اور �رے‬16 �
� � �� 56 ‫ر��رڈ‬
� �� ‫� ا��ا� �رو�ر‬ � Witness (1) Witness (2)
‫��دى‬ � � � ‫�� ا �� د �رو�رى‬

� � ��
� � �‫� �� اور� ��ن � �ر ا�ا‬ �� 46 �� ‫ذر� �ر�� ر� � اب �رى �� و‬ � ��
Signature Signature
�
‫ا��ت � �� ۔‬ � � ‫�� رڈ‬ Name Name
‫� �۔‬
Address Address
‫ﻗﺪر د ا ﻧﯽ‬
��
� � � � � ‫�� داد د�� ں‬ � ��
� ‫� اور‬A-1 � ‫ڈا��ز �� ف‬ ‫� �رڈ آف‬
ِ ‫�ز� اور � داروں � �رزا� ) � �� (�� رت‬ �
،��‫ا‬ ‫�رڈ �رى‬ � CNIC No. CNIC No.
‫�� وں �۔‬ � � ‫� �ص �ر � ان‬
� � ‫�� ر�د� � ان‬
‫� �ون �� ار‬ � �� ‫� ارادےاور‬،� �� ‫�ل‬ Important:
��
Signature on
‫�و�ں � � ��ار اور�ف �۔‬ 1. This form of proxy, duly completed and signed, must be deposited at the
�� ‫ز�وں‬ � ‫��ت‬ ‫اور‬ ‫�ع‬ ّ ‫�� ز�د� �� رو�ر ى‬
�
Rs. 100/-
� ��
Revenue Stamp
registered office of the Company at 12/CL-6, Claremont Road, Civil Lines,
� � ‫�ا�� ظ � آپ � � � �� س � ��۔در � اب‬ �
� � � �‫� � ا‬
� � ‫��ں اور ان �م ا�اد‬ � ‫� � � اس �ص �ل‬ � � Karachi not later than 48 hours before in the meeting. (Signature must agree with the specimen
� � �‫ �� ز ��دہ � ��ن � �� و‬40 � ‫ا� �رو�ر‬

signature registered with the company)
� �� ‫��ا��ا‬ � 2. This form should be signed by the Member or by his/her duly authorized
� � �� ‫�ا‬� � � ‫�� ں � آپ‬ � ‫��د‬
��
� �� ‫� �� اور‬ � ‫�� ا��ا� � � � � ��۔�م د�� در‬ � � ‫�ں‬ attorney in writing. If the member is a Corporation, its common seal should be affixed to the instrument.
‫ا� �ر� �دار ادا �� ۔‬ ��
� � � � ‫� آپ‬ � � �� ،� ِ � ��
� � (‫�رزات ) � � � ��ں‬ 3. A member entitled to attend and vote at the meeting may appoint any other member as his/her proxy
to attend and vote on his/her behalf except that a corporation may appoint a person who is a Member.
‫رﻗﻢ ﺑﺮاﺋﮯ اﻣﺪادﺳﯿﻼب زدﮔﺎن‬ ‫ا� �� ۔‬
�� For CDC Account Holders/Corporate Entities:
� � �� ،� � ‫��ب‬
� � ‫�ہ‬
� � ،� �
� ‫ز�� ِ آب آ‬ ‫ﮐﻞ ﮐﮯ ﻟﺌﮯ اﭘﻨﮯ ﻧﻈﺮﯾﺌﮯ ﻣﯿﮟ ﺳﺮﻣﺎﯾﮧ ﮐﺎری ﮐﺮﻧﺎ‬ In addition to the above following requirements have to be met:
‫ ادو ��ت اور‬،‫ا� ا�ادى � �� اور � � و � �و ��ن ا�اد � �ا‬
� � � � �
‫آ�� ل ا�ن �دہ � �� و‬ � ��‫ا‬
� �� ‫ہ�رے‬ i. The Proxy form shall be witnessed by two persons whose names, address and CNIC Numbers shall be
‫�ظ � �ا� �� ر �� ۔‬ � � �
‫ا�� رد و �ش‬
� �‫�� ا‬ � ‫� اور � ِ � “�را �م � � � ��ر‬ mentioned on the form.
� �
� ،� � �‫د�” � �� اور �� ا��ا‬ � � � ��‫� ��ں � ز‬
ii. Attested copies of CNIC or Passport of the beneficial owners and proxy shall be furnished with the
proxy form.
�
FIEDMEC ‫آ� وا� � � � �� رى �رى ر� �� ۔‬ iii. The proxy shall produce his/her original CNIC or original Passport at the time of the meeting.
��
‫زاﮨﺪ ﻣﺠﯿﺪ‬ �‫در� �ا‬� � � �� ‫ا‬30 � ‫� �� ہ �رى‬ � iv. In case of corporate entity, the Board of Directors’ resolutions/power of attorney with specimen
� � � �� signature shall be submitted (unless it has been provided earlier) along with proxy form.
� �
�
336

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We Enrich

Lives & Lifestyles

National Foods Limited

Annual Report 2022

National Foods Limited

Annual Report 2022 | 01

Annual Report 2022 | 03

About The Company Corporate Governance Business Review Financial Report

© 2022 National Foods. All Rights Reserved. Annual Report 2022 | 05

National Foods continues We began our journey in 1970 as a spices company

their longstanding better lifestyle for those around us.

Pakistani heritage. Since inception in 1970, National Foods has evolved

This Fiscal Year, we This milestone was an excellent opportunity for

12 | Completing 50 Years of Enrichment Annual Report 2022 | 13

14 | Completing 50 Years of Enrichment Annual Report 2022 | 15

16 | Completing 50 Years of Enrichment Annual Report 2022 | 17

18 | Business Profile Annual Report 2022 | 00

• Through building a reliable brand, national foods

• National Foods must focus on customer needs

• We must strive to be leaders in all the brands that

• Our research must continuously produce new

• We must prove ourselves to be good corporate

• Projects to be identified and initiated that

• Reserves must be built, new factories created,

• We must create an environment in our offices

• With the help of Almighty Allah, the company can

Annual Report 2022 | 25

With our new vision steering

We’re more than quantities, segments, and

Scan to visit our Corporate Website

28 | Core Value Annual Report 2022 | 29

i. Providing assistance to the competition or

ii. Making personal gains at company expense

30 | Code of Ethics & Business Practices Annual Report 2022 | 31

Joint Business Partnership between

Availability of National Foods at Walmart

Certification of Port Qasim Facility with

Launch of Scene On in Top 21 Snack

32 | Creating History Annual Report 2022 | 35

Congratulations to the entire National Foods family!

Based on our ongoing efforts to create and initiate

36 | Awards & Certificates Annual Report 2022 | 37

38 | Awards & Certificates Annual Report 2022 | 39

National Foods Unveils New Packaging of Pakistan’s No. 1

40 | No. 1 Recipe Mixes Annual Report 2022 | 41

42 | Our People Annual Report 2022 | 43

Annual Report 2022 | 45

Port Qasim Plant Initiative) which aims to

• GMP Compliant Industrial Flooring

46 | Food Services Division Annual Report 2022 | 47

48 | Manufacturing Excellence Annual Report 2022 | 49

50 | Manufacturing Excellence Annual Report 2022 | 51

Quality & HSE compliance:

52 | Manufacturing Excellence Annual Report 2022 | 53

1 Health Safety & Environment

54 | Manufacturing Excellence Annual Report 2022 | 55

2 Quality Management System

Moreover, we also translated Consumer Related

At Nooriabad plant online inspection and monitoring

56 | Manufacturing Excellence Annual Report 2022 | 57