ROOT FOR

GROWTH
ANNUAL REPORT 2023
About the Cover
Just like a strong tree firmly rooted in the ground, we
believe in building a solid foundation for our future
endeavors. This theme represents the company’s
commitment to sustainable growth, innovation, and
adaptability in an ever-changing world.

Just like a strong tree we remain steadfast in our

pursuit of excellence, ensuring that our roots run deep.
Together, we stand tall, ready to create a brighter and
more prosperous future for all.
Since 1953, we are
trusted not to compromise
Pakistan Cables Ltd., the country's premier and most trusted cable manufacturer, was established in 1953 under
the visionary stewardship of the Company’s founder, the Mr. Amir Sultan Chinoy. His entrepreneurial endeavors
resulted in a joint venture with British Insulated Callender's Cable (BICC), UK to set up Pakistan Cables in Karachi.
BICC was one of the leading cable manufacturing companies in the world during the time. Over the years, Pakistan
Cables has earned a reputation as a market leader in the country. The Company is Pakistan’s only cable manufacturer
listed on the Pakistan Stock Exchange since 1955.

During 2010 -2017, Pakistan Cables remained an affiliate of General Cable, a Fortune 500 company with a global
presence of 57 plants in 26 countries. Currently, Pakistan Cables has an exclusive technical collaboration with CTC
Global Inc., US.

The Company is ISO 9001:2015, ISO 14001:2015 and ISO 45001 with certifications from KEMA Netherlands, CNC
Germany, Bureau Veritas, TÜV SÜD, TÜV Rheinland, TÜV Austria, UKAS, BSI, USACE, PSQCA and PCSIR.

For over 70 years, Pakistan Cables has continued to challenge the status quo, providing end-to-end solutions to
its customers by offering a versatile product portfolio of Wires & Cables, Aluminium Sections for Architectural
Applications, Copper Rod, PVC compound and Wiring Accessories.

It is a member of the Amir S. Chinoy Group (ASC). The ASC Group has been at the forefront of Pakistan’s industrial
development for over 70 years. Today, the ASC Group includes two other listed companies, International Industries
Limited and International Steels Limited and boasts a collective turnover of Rs.125 billion, with annual metal
tonnage produced in the range of 380,361. Furthermore, the ASC Group reported a combined total export of
Rs. 18 billion in 2022-23 and covering over 60 international markets.

Exporting to more than 35 countries for over 27 years, Pakistan Cables has stockists across 3 continents. As winners
of the prestigious FPCCI Export Trophy consecutively for seven years since 2016, Pakistan Cables is leading the
wires and cable exporter segment from Pakistan.

In Pakistan, the Company has the largest dealers’ network across over 200 cities and towns. The Company also
created Pakistan’s first online e-store anticipating changing consumer needs. The Pakistan Cables e-store has
the largest delivery network covering 650 cities and towns nationwide. (www.pakistancables-estore.com)

Recently it has also initiated expansion to a new 42-acre, purpose-built, state of the art manufacturing facility in
Nooriabad, Sindh. The transformational move is set to kick-start an aggressive period of growth for the Company. The
upcoming manufacturing facility also includes Pakistan’s first and largest Miyawaki based urban forest on an industrial
estate. Spread over 3 acres, the Pakistan Cables Urban Forest is home to over 50,000 trees of 59 native species.

The Company was also one of the first 26 local companies to sign the Business Ambition for 1.5°C commitment
prior to COP26 in Glasgow, UK in 2021. As a signatory of the United Nations Global Compact, all CSR related
activities are aligned with the UN’s Global SDGs.

Pakistan Cables is committed in its journey to investing in lasting relationships with all its stakeholders. Widely
recognized for setting industry benchmarks, the company’s pledge to deliver world class solutions, operating
responsibly and upholding safety and sustainability is a driving force as the market leader, renowned and trusted
by generations across Pakistan.
Contents
INTRODUCTION FINANCIAL STATEMENTS
Vision and Mission Statement 07 Independent Auditors’ Report 129
Code of Ethics 09 Key Financial Highlights 2023 133
Code of Conduct 11 Statement of Financial Position 134
Occupational Health, Safety & Environment 13 Statement of Profit or Loss 135
Amir S.Chinoy Group 15 Statement of Profit or Loss and Other
Strategic Objectives 18 Comprehensive Income 136
Management Objectives and CPIs 19 Statement of Cash Flows 137
Company Information 21 Statement of Changes in Equity 138
Geographical Presence 23 Notes to the Financial Statements 139
Nature of Business 25
Product Portfolio 26
Quality Assurance 36 SHAREHOLDERS’ INFORMATION
Journey Over The Years 38 Investor Relations 191
Pattern of Shareholding 193
Categories of Shareholders 194
GOVERNANCE Highlights of the AGM 2022 195
Directors’ Profile 45 Notice of AGM (English) 196
Committees of the Board 50 Notice of AGM (Urdu) 211
Board Audit Committee Report 52 Proxy Form (English) 212
Management Team 55 Proxy Form (Urdu) 214
Executive Management Committee 56 Glossary 216
Organizational Structure 57
Chairman’s Review (English) 59
Chairman’s Review (Urdu) 62
Directors’ Report (English) 63
Directors’ Report (Urdu) 102

CORPORATE GOVERNANCE
Review report on the
Statement of Compliance 105
Statement of Compliance with the
Code of Corporate Governance 106

FINANCIAL HIGHLIGHTS
Key Financial Data 112
Financial Snapshots 113
Analysis of Financial Statements 117
Quarterly Performance Analysis 122
Dupont Analysis 123
Direct Method Statement of Cash Flows 124
Statement of Value Addition 125
ROOT FOR
PROSPERITY
INTRODUCTION
 Vision
Ignite Possibilities.
Transform Lives.
Instil Pride.

Mission
By fostering meaningful customer experiences, we lead with a
focus on safety, quality, sustainability and operational excellence
to maximize stakeholders’ value and uphold responsibility
towards society.

07 | Pakistan Cables Limited

Values

Teamwork Agility Passion

Innovation Transparency

Annual Report 2023 | 08

 Code of Ethics
HONESTY:
It is the policy of Pakistan Cables Limited (the “Company”) to conduct its business with honesty
and integrity and be ethical in its dealings while showing respect for the interest of those with
whom it has a relationship.

COMPLIANCE:
The Company is committed to comply with all laws and regulations. The Board of Directors
and the Management team are expected to familiarize themselves with prevailing laws
and regulations governing their individual areas of responsibility and not to transgress
them. If in doubt they are expected to seek advice. The Company believes in fair competition
and supports appropriate competition laws.

POLITICAL ACTIVITIES:
The Company does not support any political party nor does it contribute funds to groups
whose activities promote party interests. The Company will promote its legitimate business
interests through trade associations.

QUALITY AND SAFETY:

The Company is committed to provide products which consistently offer value in terms of
price and quality and are safe for their intended use, in addition to satisfying customer
needs and expectations.

09 | Pakistan Cables Limited

ENVIRONMENT:
The Company is committed to run its business in an environmentally sound and sustainable
manner and promote preservation of the environment.

CORPORATE SOCIAL RESPONSIBILITY:

The Company recognizes its social responsibility and will contribute to community
activities as a good corporate citizen.

TRANSPARENCY:
The Company is committed, and fully adheres, to the reliability of financial reporting
and transparent transactions.

EMPLOYEES AS ASSETS:
The Company is committed to recruit and promote employees on merit and provide
a safe and healthy working conditions for all its employees. The Company firmly
believes in maintaining good communications with its employees.

Annual Report 2023 | 10

 Code of Conduct
Objective As such, each Associate shall observe the highest
This Code of Conduct is intended to set out appropriate standards of honesty, integrity, ethical and law-abiding
standards of conduct and behavior by the Directors behavior when performing their duties and dealing
and employees (collectively referred to as “Associates”) with other Associates, shareholders, customers,
of Pakistan Cables Limited (the “Company”). The suppliers, or other advisers of the Company.
Associates are expected to act with integrity and
objectivity, striving at all times to enhance the Confidentiality
reputation and performance of the Company. Information received by Associates in the course of
the exercise of their duties remains the property of
General Principles the Company and must be kept confidential at all times.
• Associates must recognize that their primary Confidential information may only be released or used
responsibility is to the Company as a whole. with specific permission from the Company and/or
Associates of the Company must act honestly, in where such disclosure is:
good faith and in the best interests of the Company
as a whole. • Required to be disclosed to another Associate in
the normal conduct of the Company's operations;
• Associates must not take advantage of their
position for personal gain, the gain of their affiliates • Authorized by the Board of Directors;
or to cause detriment to the Company.
• Required by law or a regulatory body.
• Associates have an obligation to comply with the
spirit, as well as the letter, of the law and with the An Associate’s obligations in respect of confidentiality
principles of this Code. shall continue after an Associate’s association with the
Company is concluded.
• The Company views breaches of this Code as
serious misconduct. Associates who have become Conflict of Interest
aware of any breaches of this Code must report the A conflict of interest arises when a personal, professional
matter immediately to senior management or business interest of an Associate are potentially at odds
personnel and/or a Director, as may be appropriate. with the best interests of the Company.

• Any Associate who in good faith, reports a breach In the event that such a conflict arises, or is perceived to
or a suspected breach will not be subject to any arise, the matter shall at all times be resolved in favor of
retaliation or recrimination for making that report. the Company. Moreover, all Associates must:

• Associates who breach the policies outlined in the • Declare, to their reporting manager and the HR
Code may be subject to the disciplinary action Head, any potential, actual or perceived conflicts
including, in the case of serious breaches, dismissal. of interest that exist at the time of commencing
their association with the Company;
Honesty and Integrity
Associates have a duty to use due care and diligence • Declare, to their reporting manager and the HR
in fulfilling the functions of their position and exercising Head, any potential, actual or perceived conflicts of
the powers attached to their association with the interest that arise, or are likely to arise, during the
Company. course of their association with the Company and

11 | Pakistan Cables Limited

• Avoid being placed in a situation where there is, or Corrupt Conduct
potentially may be, any potential, actual or Corrupt conduct, which includes but is not limited to
perceived conflicts of interest. bribery, blackmail, unauthorized use of confidential
information, fraud, theft, will not be tolerated by the
Gifts, Hospitality and Entertainment Company. Disciplinary action up to and including
Accepting and offering of gifts, hospitality or dismissal will be taken in the event of any Associate
entertainment should not unduly influence business participating in corrupt conduct. In addition, the
decision-making or cause others to perceive that there Company will report any instances of corrupt conduct
has been undue influence. Insofar, Associates must of Associates to the appropriate governmental
exercise the utmost care when offering or accepting authorities, which may result in an Associate facing
gifts, hospitality or entertainment to protect the legal prosecution.
reputation of the Company against allegations of
improper behavior and to ensure that anti-corruption Stakeholders
laws are not breached. Such activities shall at all times The Company recognizes its multiple stakeholders,
be carried out in accordance with prevailing laws and including its shareholders, customer, suppliers,
Company policies. bankers/lenders, media, regulators, employees, the
community etc. All Associates shall ensure appropriate
stakeholder engagement in a manner that fosters good
relations in accordance with prevailing law, Company
policies and industry good practices.

Annual Report 2023 | 12

 Occupational Health,
Safety & Environment
Code of Conduct iii. Reporting Incidents:
Pakistan Cables Limited (“PCL”), is committed to providing Be aware of what is going on around you and report
a safe, secure and healthy workplace for all its employees, any incident, illness, potential hazard, near miss,
unsafe acts and unsafe conditions you may see to
customers, contractors, suppliers and all others who work
your Supervisor/Manager and HSE Department
at or visit its premises. immediately, without assuming that someone else
has already reported it.
This Code of Conduct on Occupational Health, Safety and
Environment (The “Code”) sets out a framework within iv. Use of Appropriate PPEs:
which employees are expected to work. The Code promotes Wear correct personal protective equipment (PPEs)
the standards and behaviors required of employees in the at all times during the performance of your job on
discharge of their duties and contributes to an evolution of the shop floor, and do not tamper with safety
the culture enabling PCL to successfully pursue its goal of systems or equipment.
achieving excellence in HSE performance. v. To be a Role Model:
Make safety a value that is embedded into your
Our goal is to achieve and sustain “Zero Loss Time Incident” daily activities and use caution and care in your job.
and “Promote Preservation of Environment” target by
working together, and relying on prevention as the key to vi. Use of Chemicals and Hazardous Materials:
eliminating risks and hazards and also promoting HSE as Use hazardous chemicals and materials only in
a way of life throughout PCL and beyond. accordance with procedures and methods that
effectively protect employees against incidents and
illnesses.
General Responsibility of Employees:
All employees are expected to comply with the following vii. Ensuring Safe Working Condition:
Code of conduct clauses at all times. Ensure that machines, tools and other technical
aids are in good working order and used in a
i. HSE Management System Compliance: sensible manner with regards to health and safety.
Act in compliance with Pakistan Cables’ Health, Safety
viii. Protecting Environment:
and Environment management system, codes,
Protect the environment by knowing and following
standards, rules at all times and demonstrate the environmental policies and regulations that
commitment to HSE excellence. Any violations must apply to your work, and by developing and
be immediately reported to your immediate sustaining a “Clean and Green” workplace. Follow
Supervisor/Manager and HSE Department. good hygiene standards.

ii. HSE Regulatory Compliance: ix. Ensuring Safe Working conditions for everyone:
Make yourselves familiar and comply with all health, Make all contractors, vendors or third-party
safety and environmental regulations, policies, stakeholders including visitors aware of PCL’s HSE
legislations, emergency procedures that apply to Policy, Code of Conduct and clearly define the
your job and place of work and to help make the requirements for them to comply to these.
workplace safe for everyone.

13 | Pakistan Cables Limited

Annual Report 2023 | 14
 Amir S. Chinoy Group
The Amir S. Chinoy Group (ASC Group) has been at the forefront of Pakistan’s industrial development since the
founding of the country 75 years ago. Our founder, Mr. Amir S. Chinoy, a pioneer of industrialization in Pakistan,
laid the foundation of the ASC Group by setting up manufacturing concerns in heavy chemicals (Pak Chemicals
Ltd,1951), steel, and galvanized pipes (International Industries Limited, 1948) and electrical wires and cables
(Pakistan Cables Limited, 1953). His commercial interests also extended to trading, electrical contracting, and
the representation of major European and international companies in South Asia. As flag bearers of determination
and innovation, the group later invested in a green field project for the manufacture of Cold Rolled, Galvanized
and Colour Coated steel coils and sheet (International Steels Limited, 2007).

Today, the ASC Group is one of the leading industrial groups in Pakistan with proven expertise in manufacturing,
trading, and industrial services. The Group companies enjoy a credible export pedigree with combined export
revenues in excess of Rs. 18 billion. The ASC Group growing global footprint is further represented by an on-ground
presence in Australia and Canada through its wholly owned subsidiaries IIL Australia Pty. Ltd. and IIL Americas
Inc. which collectively contribute Rs. 8 billion in export revenues.

In Pakistan, the ASC Group has an extensive distribution network through 1600+ outlets in over 500 cities and
towns across the country.

The broad range of products manufactured by the Group companies includes:

• Cold Rolled Steel • Electric Wires & Cables (LV & MV)
• Galvanized Steel • Electric Overhead Conductors of Aluminium & Copper
• Colour Coated Steel • Special Cables
• Steel Pipes (CR, HR, Galvanized, Stainless Steel) • PVC Compound
• Polymer Pipes (UPVC, PPRC, PE) • Copper Rod
• Hollow Structural Sections (Steel) • Wiring Accessories
• Scaffolding Systems and Formwork • Extruded Aluminium Sections for Architectural Applications

ASC Group Participated in IAPEX 2022, Karachi. Group Companies’ Leadership Team at the
MAP Annual Convention 2022.

15 | Pakistan Cables Limited

ASC Group companies have attached international equity partners of repute, which have further enriched technical
expertise and best practices across its companies. Leading equity partners, the ASC Group has been associated
with include:

• British Insulated Callender’s Cable (BICC), UK

• Doogood, Australia, Australia
• General Cables, USA
• JFE Steel Corporation, Japan
• MEVA Formwork Systems, Germany
• Sumitomo Corporation, Japan
• International Finance Corporation (IFC), USA

ASC Group Cricket Team at the 12th edition 9th Amir Sultan Chinoy Memorial
Super Challenger Premier League. Cricket Tournament 2022 held in Karachi.

Group Highlights

123 31.4 26 18 380,361

PKR in Billion PKR in Billion PKR in Billion PKR in Billion (Metric Tons)
Sales Turnover Market Capitalisation Contribution to Export Sales Total Metals Produced
National Exchequer

70 2,513 60 1,600 500

Years of Number of Number of Number of Geographical Footprint
Production Employees Export Destinations Dealers/Distributors in Pakistan
(including USA, (Cities & Towns)
Canada, Europe)

*As on FY ending 30th June 2023

Annual Report 2023 | 16

 One Group.
Three Wins.
Winners of Pakistan Stock Exchange
Top 25 Best Companies Award 2021
The ASC Group member companies, which include International Industries Ltd.,
Pakistan Cables Ltd. and International Steels Ltd., have been recognized by the Pakistan
Stock Exchange (PSX) for their commendable performance and business practices.

17 | Pakistan Cables Limited

Strategic Objectives
The Company’s key strategic objectives contribute to the well-being of its customers by delivering world class
quality products that are consistently manufactured in compliance to all relevant international and local standards.
A safety centric approach across all spheres of business has been implemented, which remains a key pillar for
continued operational excellence. The Company is committed to increasing stakeholder value through continuous
improvement of its production processes, investing in R&D, broadening its product portfolio and setting benchmarks
in the Industry. The Company’s upcoming manufacturing facility in Nooriabad, Sindh is a testament of its vision
to invest for significant improvement in operational efficiencies, technological advancements and sustainability.
In addition to this, the Company is focused on streamlining its human resource policies, improving its standard
operational procedures and creating a fair and safe working environment for its employees’ while retaining a
focus on business continuity.

Annual financial targets relating to profitability and capital structure are closely monitored and shared with
relevant stake holders to ensure that the Company generates value for its shareholders. The Company’s corporate
strategy concentrates on staying ahead of the curve by adding new levels of value across the wires and cables
industry in Pakistan and gaining a growing export footprint.

As the most trusted brand in its category by consumers in Pakistan, the Company has evolved its corporate social
responsibility agenda over time. Under its vision to ‘Transform Lives.”, the Company has created unique position
by consistently contributing towards the areas of youth empowerment through STEM and scholarship programs,
environmental conservation and protection, support during national disasters and general social upliftment
initiatives, which continue to make a positive impact and inspire others.

Annual Report 2023 | 18

 Management Objectives and
Critical Performance Indicators
Objectives CPI Future
Relevance

Customer Satisfaction
The Company values its customers and their loyalty
tremendously; as such, the Company continually works
towards enhancing the satisfaction of its customers by Product turnover
extending credit facilities, trade discounts, loyalty club rewards Market share Yes
and more. The Company has continual testing mechanisms Geographical presence
in place to ensure the quality of its products, and efficient
after-sales procedures, to keep customers satisfied.

Maintaining Standard of Excellence Technological

The Company is geared toward consistently meeting advancements
international standards by ensuring selection of the world’s Stringent internal Yes
best quality raw materials, world-class workmanship and a testing mechanisms
rigid quality assurance and control regime. Certifications
Accreditations

Varied Product Portfolio

With ever-evolving customer needs, the Company is focused
on research and development to ensure that it is offering up
Product development Yes
to date with evolving trends in the industry. Our products
Market research
consistently conform to the relevant international standards
in order to ensure smooth flow of electricity, better performance
of electrical appliances and safety to life and property.

Training and development

Enhancing Employee Satisfaction
Employee engagement
Our employees are our most valued resource. The Company
activities
endeavors to provide a nurturing, friendly, supportive and
Appropriate evaluation Yes
equal opportunity work environment, with significant growth
processes
potential and training opportunities
Sound policies and
procedures

Maintaining Shareholder Satisfaction Appropriate return on

The Company is cognizant of the trust that is placed in the investment
Company by its shareholders. It is a priority for the Company Transparency in Yes
to protect the interest of its shareholders and maximize their disclosures
return by adequate dividend payouts. Timely addressing of share
transactions

19 | Pakistan Cables Limited

 Objectives CPI Future
Relevance

Regulatory Compliance
Adherence to legal
The Company prides itself on being a good corporate citizen,
requirements Yes
with timely, and transparent, disclosures to its regulators and
Timely fulfillment of
operating in compliance with effective laws and policies of
compliance processes
the Government of Pakistan.

Sustainability
The Company continually seeks to operate in an efficient and Community development
environmentally friendly manner, working to reduce its carbon Sustainability and
footprint. CSR projects are developed and implemented by Environmental initiatives Yes
the Company for the benefit of the communities at large. Occupational safety and
health

Annual Report 2023 | 20

 Company Information
BOARD OF DIRECTORS
Mr. Mustapha A. Chinoy Non-Independent Non-Executive Director Chairman
Mr. Shoaib Javed Hussain Non-Independent Non-Executive Director
Ms. Spenta Kandawalla Independent Director
Mr. Akbar Ali Pesnani Non-Independent Non-Executive Director
Mr. Ali H. Shirazi Non-Independent Non-Executive Director
Mr. Arshad Mohsin Tayebaly Independent Director
Mr. Mazhar Valjee Independent Director
Mr. Kamal A. Chinoy Executive Director
Mr. Fahd Kamal Chinoy Executive Director Chief Executive Officer

BOARD AUDIT COMMITTEE

Mr. Mazhar Valjee Chair
Mr. Akbar Ali Pesnani Member
Mr. Ali H. Shirazi Member

HUMAN RESOURCE AND REMUNERATION COMMITTEE

Ms. Spenta Kandawalla Chair
Mr. Arshad Mohsin Tayebaly Member
Mr. Mazhar Valjee Member
Mr. Kamal A. Chinoy Member
Mr. Fahd Kamal Chinoy Member

CHIEF FINANCIAL OFFICER

Mr. Waqas Mahmood

COMPANY SECRETARY
Ms. Natasha Mohammad

AUDITORS
A.F. Ferguson & Co.
Chartered Accountants

LEGAL ADVISOR
ASPIRELaw Advocates & Corporate Counsel

TAX ADVISORS
A.F. Fergusons & Co.
Muhammad Bilal & Co.
A.Qadir & Co.

21 | Pakistan Cables Limited

BANKERS Rawalpindi
Standard Chartered Bank (Pakistan) Limited Office # 168, Adamjee Road, Near Ministry of
Bank Al-Habib Limited Defence, Saddar, Rawalpindi.
Habib Bank Limited Tel: +92 -51-5732724-25
Meezan Bank Limited Fax: +92-51-5732426
MCB Bank Limited Email: [email protected]
Industrial and Commercial Bank of China Limited
Soneri Bank Limited BRANCH OFFICES
BankIslami Pakistan Limited Multan
Habib Metropolitan Bank Limited Office # 13, 4th Floor, Bomanji Square,
National Bank of Pakistan 84/2 Nusrat Road, Multan Cantt.
Tel : +92-61-4583332, 4504446
Website: www.pakistancables.com Email: [email protected]

E-store: www.pakistancables-estore.com Faisalabad

Office # 1, 1st Floor,
SHARE REGISTRAR Wahab Center, Main Susan Road,
*THK Associates (Pvt.) Limited Faisalabad.
Plot No. 32 C, Jami Commercial Street, Tel: +92 41 8720036
No. 2, DHA, Phase VII, Karachi - 75500. Email: [email protected]
Tel: +92 -21-3510191-95
Fax: +92-21-35310190 Peshawar
Email: [email protected] Office # 14, 2nd Floor, Mall of KPK,
University Road, Peshawar.
REGISTERED OFFICE Tel: +92 -91-5845068
Fax: +92-91-5846314
B-21 Pakistan Cables Road,
Email: [email protected]
Sindh Industrial Trading Estates,
P.O Box 5050, Karachi -75700. Abbottabad
Tel: +92 -21- 32561170-5 13-14, Sitara Market,
Fax: +92-21-32564614 Mansehra Road, Abbottabad.
Email: [email protected] Tel: +92 -992-383616
Fax: +92-992-385510
HEAD OFFICE Email: [email protected]
1st Floor, Arif Habib Centre,
23 M.T Khan Road, Karachi.
UAN: +92-21-111-CABLES (222-537)
Fax: +92-21-32462111
Email: [email protected]

REGIONAL OFFICES
Lahore
60-A F.C.C., Zahoor Elahi Road,
Gulberg IV, Lahore.
Tel: +92 -42- 35785611-4
Email: [email protected]

*THK Associates (Pvt.) Limited served as the Company’s Share Registrar until 8th August, 2023. CDC Share
Registrar Services Limited took over as Company’s Share Registrar effective 9th August, 2023.

Annual Report 2023 | 22

 Geographical Presence

200+
The largest Dealer Network in

cities and towns across

Pakistan. Karachi to Skardu
and beyond.

Head Office
Regional Offices
Branch Offices
Nooriabad Factory &
S.I.T.E. Factory

23 | Pakistan Cables Limited

 Abbottabad
Peshawar

Rawalpindi

Lahore

Faisalabad

Multan

Nooriabad

Karachi
S.I.T.E.

Annual Report 2023 | 24

 Nature of Business
Introduction reserves. Pakistan Cables has established itself as a key player
Company is a pioneer in Pakistan’s wires and cables industry. in the manufacturing sector with 70 years of experience in the
It is principally engaged in the manufacture of conductors, wire and cables business. Its business is driven by growth
wires and cables for transmission and distribution of electricity prospects and activity in end markets where its products are
since 1953. In 1984, the Company started extrusion of anodized used, which are primarily in projects of all kinds, including
aluminium profile sections for architectural applications. In infrastructure, facilities, factories, commercial and residential
1996, the Company set up a state of the art plant to manufacture construction. Cable and conductors are also used in the
High Conductivity Oxygen Free (HCOF) Copper Rod. Due to the transmission and distribution of electricity by the country’s utility
increased requirement of rods for manufacturing wire and companies. An extensive array of world-class quality wires and
cables because of growing customer demand, the production cables is manufactured by the company to meet the diverse,
capacity of the plant has been regularly enhanced over recent dynamic and time-sensitive needs of its customers. Over the
years. In 2008, the Company set up a PVC Compounding Plant year, the Company successfully won large orders for housing
to manufacture high quality electric cable grade PVC compound. societies, as well as for customers in the High rise building,
The Company also set up a 2-MW gas fired tri-generation Textile, Power and Renewable Energy sectors.
Power Plant, allowing it to be mostly self- sufficient for its
Business Model
electricity needs.
i) To continue to generate market awareness of the brand
In 2018, the Company purchased 42 acres of land in Nooriabad, Pakistan Cables and educate the consumer about the
Sindh in order to expand and consolidate its manufacturing benefits of cables and wires that are of the highest quality
facilities. The Project has mostly concluded with respect to resulting in better cable performance and higher safety
construction and machine installation and commissioning is thereby remaining the customers’ first preference;
underway. The Nooriabad facility includes a Germany
ii) To identify profitable markets and optimal product mix
technology CCV line for Medium Voltage Cables with the highest
and tailor our product offerings accordingly;
voltage rating capability (69 KV) in Pakistan. In addition, a new
copper rod plant and PVC Compounding plant will significantly iii) To ensure that products are made easily available to the
enhance the capacity of these products. Other equipment is customer through our network of dealers, distributors,
also under installation, which will increase the Company’s stockists and warehouses, and by providing optimal direct
capacities for various types of wires and cables. The Nooriabad sales coverage (where relevant).
facility, includes a first of its kind Urban Forest on 3 acres with
iv) To penetrate targeted markets through cost benefit
50,000 trees, a reflection of the Company’s commitment to the
analysis and customized service offering.
environment. The Nooriabad project is envisioned to be
Pakistan’s first fully integrated cable manufacturing facility, v) To explore opportunities for enhancing exports and
which will be at par with the best in the world. growing the contribution of exports in the Company’s
overall revenue mix; and
Industry
vi) To continuously identify evolving needs of customers
Pakistan Cables is the only listed company in the cable industry,
and bring new products to market accordingly.
which comprises of a few large players, a handful of medium
and small domestic producers as well as imports. The prices Legal Environment
of cables, copper rod, conductors and aluminium extrusions
The Company operates under the Companies Act 2017, which
are closely linked to the global markets for copper and
replaced the Companies Ordinance 1984, and the listed
aluminium. Both base metals are traded on the London Metal
companies (Code of Corporate Governance) regulations 2019.
Exchange (LME), the world's premier non-ferrous metals
Insofar it is registered and licensed by the Securities and
market. The price of both these metals is therefore determined
Exchange Commission of Pakistan (SECP). The Company is
at the LME and any fluctuations in copper or aluminium prices
also listed on the Pakistan Stock Exchange and is regulated
have a direct effect on the pricing of our products. Since copper
by the PSX rule book and all circulars/notifications issued
and aluminium are imported, the industry is also exposed to
thereunder. The Company’s trade network covers over 200
exchange rate fluctuations and can be exposed to import
cities and towns across Pakistan, including warehouses and
restrictions due to challenges with respect to declining foreign
power cable stockists in major cities of the country.
25 | Pakistan Cables Limited
Product Portfolio
We offer a versatile portfolio of wires and cables,
conductors, aluminum sections for architectural
applications, wiring accessories, copper rod and PVC
compound. The continued growth of our businesses
is a testament of our well-rooted, far-reaching success.

Annual Report 2023 | 26

 Wires and Cables
Pakistan Cables Limited manufactures a broad range MEDIUM VOLTAGE (MV) AND
of wires and cables that conform to national and LOW VOLTAGE (LV) CABLES
international standards. Wires and cables are We manufacture Medium Voltage (MV) cables up to15
manufactured with LME registered “A” grade copper kV and Low Voltage (LV) power cables up to 3.3 kV. We
cathodes which results in multiple benefits to our end can supply various types of insulation required
users such as: PVC/XLPE/LSZH where relevant and customized to
customers’ preferences. All cables manufactured by
• Lower electricity billing Pakistan Cables Limited are subjected to rigorous
• Optimum efficiency of appliances in-house quality checks.
• Safety to life and property
• Better energy utilization

GENERAL WIRES AND CABLES

We broadly categorize available general wires and
cables as follows:

• Single core cables range from 1mm2 to 10mm2

• Large single core cables from 16mm2 to 70mm2
• Multi-core cables from 1mm2 to 10mm2
• Flexible multi-core cables from 1mm2 to 4mm2

In addition, customized requests are regularly

facilitated to meet customers’ specific requirements.

27 | Pakistan Cables Limited

FIRE RETARDANT CABLES OTHER WIRES AND CABLES
We also supply cables for specialized needs with We also manufacture various other types of wires and
greater flame propagation ability and better protection cables products to meet versatile needs of our
against fire. These cables use specialized materials customers, which include but are not limited to:
such as Low Smoke Zero Halogen (LSZH) insulation in
combination with various constructions and compounds. • Indoor Telephone / Intercom Cables
To our knowledge, Pakistan Cables Limited is the only • Control Cables (PVC and XLPE insulated)
company in Pakistan to have specialized in-house flame • Screened Power and Control Cables
propagation testing capability, which gives us a • Auto Cables
competitive edge. Furthermore, Pakistan Cables is also • Coaxial Cables
the first wires and cable manufacturer in Pakistan to • Solar DC Cables
provide KEMA certified LSZH Power Cables.

Annual Report 2023 | 28

 Conductors
With growing power demands in Pakistan, the use of
overhead conductors for power transmission has
increased. Pakistan Cables limited provides high quality
overhead conductors to Pakistan's utility companies.
These include Aluminium Conductor Composite Core
(ACCC®), Aluminium Conductor Steel Reinforced
(ACSR®) for various voltage grade, all aluminium
conductor (AAC®), Plain Annealed Copper Conductor
(PACC®) and Hard Drawn Bare Conductor (HDBC®).

29 | Pakistan Cables Limited

Pakistan Cables Limited is also the only supplier in There is a growing awareness of this technology within
Pakistan to offer high temperature low sag type ACCC®, Pakistan and various distribution companies (DISCOs)
which is a state of the art product that provides various have rolled out plans to enhance their transmission and
benefits including reduced line losses, reduced distribution networks with ACCC®, particularly following
CO2emissions and higher current carrying capacity. This the successful completion of three projects for NTDC
is a proven technology across the world with over 120,000 and MEPCO respectively.
kilometres installed till to date, by over 250 utilities at
1,000 different projects in around 60 countries. This Pakistan Cables is fully qualified to manufacture ACCC®
product has been introduced by Pakistan Cables in conductors and is certified by CTC Global Inc.. The
Pakistan in 2017 and is expected to result in considerable Company successfully completed the first installation
benefits to the country’s overloaded transmission of locally manufactured ACCC® in December 2021, at a
infrastructure. This product is offered in collaboration 132kV Transmission Line project in MEPCO.
with CTC Global Inc., which is a US headquartered
market leader in the technology.

Annual Report 2023 | 30

 Alumex® sections are extruded from prime quality
imported AA 6063 billets. This is the internationally
recommended aluminium grade for architectural and
structural applications. These sections are anodized
on a fully automated plant. Anodized sections are
offered in 4 different colours, while powder coated
sections are available in any imaginable colour to
match the taste of the customer.

For all powder-coated sections, only polyester based

powders are used, which are manufactured and
supplied by reputable companies. These coatings are
thermosetting types, especially designed for ‘façade’
use. They can withstand the rigors of ultra violet rays
in the atmosphere.

APPLICATION:
Alumex ® sections, whether anodized or powder-
coated, are suitable for a wide range of applications
including the following:

• Structural Glazing and Curtain Walls

• Double Glazed Doors and Windows
• Hinged Doors and Windows
• Glass Doors/Swing Doors
• Double Glazed Sliding Doors/Windows
• Fixed Glazing/Shop Fronts

31 | Pakistan Cables Limited

Annual Report 2023 | 32
 Wiring Accessories
Pakistan Cables Wiring Accessories was launched in Pakistan Cables Wiring accessories are available in
2021-22. The Wiring Accessories are a versatile range two ranges:
of world class electrical switches with superior quality
and exquisite designs. • Novus Series – a premium style statement
• Decoris Series – great value at a smart price
STYLE & SIMPLICITY
Product range combines modern styling with easy to APPLICATION
install features such as in-line colour coded terminals Suitable for a diverse array of environments: homes,
and backed out captive screws. offices, industry and public spaces such as malls,
airports, hotels, etc. Pakistan Cable Wiring Accessories
QUALITY & RELIABILITY provide simplicity of choice, durability, ease of use and
All products manufactured to latest British Standards installation.
with approvals from BSI and proudly wearing the ASTA
diamond mark.

33 | Pakistan Cables Limited

Copper Rod
Since 1996, we have been manufacturing 8mm copper
rod that uses only LME registered “A” grade copper
cathodes. Pakistan Cables is the largest importer of
copper cathode in Pakistan, far surpassing any other
importer. The Company has a policy to only use the
highest quality copper in its products.

Annual Report 2023 | 34

 PVC Compounds
Since 2008, Pakistan Cables Limited has been producing
flexible PVC compounds for insulation and sheathing of
electric cables, and other flexible PVC compounds for
external sale at its exclusive PVC compound plant.

Pakistan Cables Limited uses the most sophisticated

machinery, including automated weighing and dosing
systems for each component of the various formulations.
The plant also has a polymers laboratory to enable the
development of customer specific formulations.

35 | Pakistan Cables Limited

Quality Assurance
The Company is committed to strive for product quality, approved by Oman’s regulatory authority to sell into
excellent customer service, innovation and efficiencies. the Oman market.
The company reiterates its commitment to consistently
deliver enhanced value to its customers, through To the best of our knowledge, the Company is the first
continual improvement of its product and processes. cable manufacturer in Pakistan that has a
state-of-the-art fire test laboratory, which has the
The Company satisfactorily complies with all the facility to perform the following tests, required for Low
requirements of the ISO 9001:2015 and ISO 45001:2018 Smoke Zero Halogen (LSZH) Fire Retardant Cables and
for all its products as certified by BVQI, UK. It is also Fire-Resistant Cables:
ISO 14001:2015 certified which is the environmental
management system. The Company has highly • Test for vertical flame propagation for a single
advanced quality assurance and pvc laboratories, which insulated wire or cable in accordance with IEC
are equipped with the latest equipment and are manned 60332-1-2;
by professional and skilled personnel that check
process variables at every step of the manufacturing • Test for Vertical flame spread of vertically-mounted
process, to ensure that all our final products are in bunched wires or cables in accordance with IEC
compliance with the relevant international 60332-3, Category A, B, C and D;
specifications.
• Test for Resistance to Fire, Resistance to fire with
The Company is the first cable manufacturer in Pakistan
water, Resistance to fire with Mechanical shock (CWZ)
with Medium and Low Voltage cables (MV/LV) that have
in accordance with BS 7846, BS 6387, BS 8491, EN
been accepted as world class following the type testing
50200.
and certification of its products by KEMA laboratory in
Netherlands. In addition to this, the Company’s
• Smoke density test in accordance with IEC 61034-1
products are also PSQCA certified, ERDA (electrical
research and development association), India, TUV Sud and 2;
Psb Pte. Ltd., Singapore, and have also been
successfully type tested in Pakistan’s well reputed high • Test on gases evolved during the combustion of
voltage and short circuit laboratory in Rawat. Moreover, electric cables; and Halogen, acid gas emission
the Company is the only Pakistani manufacturer test as per IEC 60754-1 and 2.

Annual Report 2023 | 36

37 | Pakistan Cables Limited
Journey Over The Years
1953 1955

Pakistan Cables Pakistan Cables Factory Mr. Habib Rahimtoola Listed on

etablished SITE, Karachi the honourable Federal Minister for Karachi Stock Exchange
Commerce and Industry inaugurated (KSE)
the factory and declared it open

1953 1968

Introduced General Wiring At the opening ceremony (from L to R) Established Factory for LV Aluminium Rod
Cables With PVC Insulation for the Mrs. Jhon Dean, Mrs. Almas Chinoy, Armoured Cables upto 3.3 KV Extrusion Plant installed
first time in Pakistan Mrs. M.G. Brown, Mrs. P.M. Beecheno, for the first time in Pakistan
General Sir Ronald Scobie & Mr. John Dean

1969

Expansion of Factory The Schloemann Press Former President Ayub Khan Visited Pakistan Cables
took place for manufacturing for processing aluminium the Founder Mr. Amir S. Chinoy standing second from the left
of power cables cable installed

1978-80 1982-83 1984

Received the KSE Top 25 Received MAP Corporate Aluminium Section Anodizing Plant
Companies Award Excellence Award for architectural for manufacturing
from the Karachi Stock Exchange application established of doors and windows
section is setup

Annual Report 2023 | 38

 1984 1996 1997

First Cable MV XLPE Cables Outokumpu Plant was setup First Cable Manufacturer
Manufacturer in Pakistan to manufacture high conductivity to receive ISO 9001
to have KEMA certified oxygen free copper rods certification in pakistan
products in Pakistan

2000 2001 2003

First Cable Manufacturer Introduced LV XLPE Commemorated Received the KSE

to receive ISO 9002 certification cables fully type tested by 50th Anniversary award from the
KEMA, Holland for the Karachi Stock Exchange
first time in Pakistan

2006 2007

Expanded Capacity Received the KSE Top Established a Fully Received Brands
of the Outokumpu Plant 25 Companies Award Automated PVC of the Year Award
from the Karachi compounding plant in the 'wires and cables'
Stock Exchange and copper rod category

2008

Mr. Kamal A. Chinoy, Chief Executive Received the Best Corporate Completed Upstream Expansion Received Brands of the Year Award
received the Top 25 companies award Report Award by Inaugurating a new in 'wires and cables' and
from Mr. Shaukat Aziz from the Joint Committee of PVC Compounding Plant Copper Rod, category
(Former Prime Minister Of Pakistan) ICAP & IMAP for the year 2006/07

39 | Pakistan Cables Limited

 2009 2010

Received the KSE Top Received ISO 9001:2001 A New Plant was Setup General Cable Corporation,
25 Companies Award Certification for the manufacture of a fortune 500 company and a world leader
from the Karachi Automobile Cables in cable manufacturing made an investment
Stock Exchange to take its 25% equity stake in Pakistan Cables

2010 2011 2012

Mr. Gregory B. Kenny, Received the Environmental Received IS0 14001:2004 Received the Best Corporate
President General Cable at the Excellence Award Certification Report Award by ICAP
signing ceremony alongside Mr. Kamal Received OHSAS 18001:2007 and ICMAP
A. Chinoy CEO Pakistan Cables Certification

2013 2015

Celebrated Recipient of Pakistan's Received the Best Occupational Won the KSE's
60 brilliant years Choice Super Brands Health & Safety top 25 companies award
Award 2015-2016 Environment Award

2016 2017

Received the 40th FPCCI Received the 41st FPCCI LV, MV, And Power Cables Collaborated with CTC Global Inc.
Export Trophy Award "Merit Export Award” received KEMA certification to launch the first ever High Capacity,
for the category "Merit Export Low Sag (HCLS) Aluminum Conduction
Award" for the year 2015-2016 Composite Core (ACCC) in Pakistan

Annual Report 2023 | 40

 2018

Celebrated 65 Years Received the 42nd FPCCI Received KEMA Gold Certification Awarded with the 11th NFEH-CSR
'Merit Export Trophy Award' for XLPE-LSZH power cables award 2017-2018 by the National
for the year 2017-2018 Forum for Environment and Health

2019 2020

Received the 43rd FPCCI Received the of 14th Pakistan's First E-Store Received the 8th FPCCI
Export Trophy award for Consumer Choice Award for wires and cables launched Achievement Award
technological advancement for launch of e-store

2020 2021

Plantation at Pakistan's Over 40,000 trees Inaugurated Wiring Accessories

first Urban Forest planted at the Pakistan Coiling Operations Launched
on an industrial estate Cables Urban Forest at the Nooriabad Factory, Sindh
commenced in Nooriabad

2022
2021

Received the 44th FPCCI Received the 36th Corporate Among Pakistan’s first 26 Won the Corporate Social
Export Trophy Award Excellence Award companies to sign the Net Zero Responsibility Award 2022
Emission commitment by NFEH

41 | Pakistan Cables Limited

2022

Won the 16th Consumer Amir Sultan Chinoy Launched Pakistan's First Loyalty Flagship initiative launched
Choice Award 2022 Group identity unveiled Club App, for electricians to promote women in STEM
(ASC)

2023

Received the 9th FPCCI Received the 45th FPCCI Received the 37th Corporate ASC Group Companies
Achievement Award Export Trophy Award Excellence Award were declared winners
from the Management of the PSX’s Top 25 best
Association of Pakistan companies award 2021

2023

Won Merit Award

for the best Corporate
Report Awards 2021

Annual Report 2023 | 42

ROOT FOR
RESILIENCE
GOVERNANCE
 Directors’ Profile
Mr. Mustapha A. Chinoy - Chairman
Non- Independent Non-Executive Director

Mr. Mustapha A. Chinoy holds a B.Sc. in Economics from the Wharton school
of Finance University of Pennsylvania, USA with a major in Industrial
Management and Marketing. He did his early Schooling from Burn Hall
School Abbottabad and A levels from Millfield school in England.

Mr. Mustapha A. Chinoy is currently the Chairman of Pakistan Cables Limited.

He is on the Board of International Steels Limited, International Industries
Limited, Travel Solution (Pvt) Limited and Global E commerce Services.
Additionally, he is the Chief Executive Officer of Intermark (Private) Limited.

Mr. Mustapha A. Chinoy has previously served on the Board of Union Bank
Limited and was Chairman of Security Papers Limited.

He is on the Board of PCL since 1-1-1986.

Mr. Shoaib Javed Hussain

Non-Independent Non-Executive Director

Mr. Hussain holds an MSc in Actuarial Management from Cass Business School,
City University, London. He is also a Fellow of the Institute of Actuaries (UK)
and began his career at an Actuarial consultancy in Pakistan.

He has over 20 years of management experience at leading Global Insurance

Groups & Consultancies in the United Kingdom and in Asia. Through his
global engagements across Europe, North America and Asia, Mr. Hussain
brings on Board his deep understanding and knowledge of finance, audit,
risk and strategy matters.

Presently, Mr. Hussain is the Chairman of State Life Insurance Corporation

of Pakistan. Before joining State Life, Mr. Hussain has held senior leadership
and management positions with AIA Group Ltd, Milliman, Prudential plc,
EY and HSBC.

He is also a Director on the Board of Fauji Fertilizer Company Limited.

He is on Board of PCL since 3-11-2021.

45 | Pakistan Cables Limited

 Ms. Spenta Captain Kandawalla
Independent Director

Ms. Spenta Captain Kandawalla is the Chairperson and co-owner of Captain-PQ

Chemical Industries. She has previously served as an Independent
Non-Executive Director and Chair of the Human Resource and Remuneration
Committee on the Board of Standard Chartered Bank Pakistan, and an
Independent Director on the Boards of State Life Insurance Corporation and
Engro Foods Ltd.

She is Founding Trustee of the i-Care Foundation, Pakistan’s first Donor Advised
Fund and the i-Care Fund America. She is also Managing Trustee of the Captain
Foundation. She serves on the Board of Patients Aid Foundation- a public-private
partnership with Jinnah Post Graduate Medical Centre. In addition, she is a
Trustee of the Layton Rahmatulla Benevolent Trust. Ms. Kandawalla is also on
the Boards of the BMH Parsi General Hospital Trust Fund and the Liaquat National Hospital and Medical College. She
is also a Founding Member of the Business Leadership Council of Wellesley College, USA Chair, Alumnae Admissions
Representatives for Pakistan, Wellesley College and Member of the Presidents’ Advisory Board on Global Education,
Wellesley College. She has also served on the Advisory Board, Pakistan Scholars Program, Woodrow Wilson International
Center, USA.

Ms. Kandawalla holds a B.A (Honors) in Political Science and Economics from Wellesley College (U.S.A) and has
completed courses at the MIT Sloan School of Management. She is a Certified Board Director from the Pakistan
Institute of Corporate Governance.

She is on the Board of PCL since 30-4-2019.

Mr. Akbar Ali Pesnani

Non- Independent Non-Executive Director

Mr. Akbar Ali Pesnani is an MBA and fellow member of both the Institute of
Chartered Accountants and Institute of Cost and Management Accountants of
Pakistan. He has served as Chairman Gwadar Port and Gwadar Port
Implementation Authority from 2004 to 2006. Mr. Pesnani has been associated
with the Aga Khan Development Network (AKDN) at senior levels for over 47
years. Mr. Pesnani has also served as a Diplomatic Representative for AKDN
in Tajikstan for 7 years.

Presently he is the Chairman of Cherat Packaging Limited and the Aga Khan Cultural
Service Pakistan. He is also a Director on the Board of Cherat Cement Company
Limited, Jubilee General Insurance Company Limited and Agha Steel Limited.

He is on the Board of PCL since 5-5-2020.

Annual Report 2023 | 46

 Mr. Ali H. Shirazi
Non- Independent Non-Executive Director

Mr. Ali H. Shirazi graduated from Yale University, U.S.A. in 2000 and
thereafter completed his Masters in Law from Bristol University, U.K. in
2005. During this period, he worked for the Bank of Tokyo-Mitsubishi in
New York as well as American Honda in Torrance, California. He is Atlas
Group Director Financial Services and President / Chief Executive of Atlas
Battery Limited. He serves on the Board of Atlas Asset Management Limited,
Atlas Insurance Limited, Cherat Packaging Limited, National Management
Foundation (sponsoring body of LUMS), National Foods and Pakistan Society
for Training and Development (President).

He is a 'Certified Director' from the Pakistan Institute of Corporate

Governance and in 2018, he completed the Owner/President Management
Program (OPM) from Harvard Business School.

He is on the Board of PCL since 22-03-2021.

Mr. Arshad M. Tayebaly

Independent Director

Mr. Arshad M. Tayebaly is a Senior Partner at Mohsin Tayebaly and Co.

He is considered to be the leading expert in Commercial and Company
litigation matters and has been practicing law for more than 32 years.
Many of the decisions in litigation matters handled by him are reported
in Law Journals.

He completed his LL.M. from Kings College London in 1990.

He is on the Board of PCL since 5-5-2023.

47 | Pakistan Cables Limited

 Mr. Mazhar Valjee
Independent Director

Mr. Mazhar Valjee has a long association with the House of Habib (HOH) where
he has served as CEO of Indus Motor Company Ltd, Thal Limited, Pakistan Jute
& Synthetics limited, Habib Metro Pakistan (Pvt) Limited, Makro Habib Pakistan
Limited and continues in the role of a group Director. Outside HOH, Mr. Valjee
has served as CEO and Country Head of Schneider Electric Pakistan and
currently Chairs the Boards of Tata Textile Mills Ltd and Tata Best Foods Ltd.

He has been an active member of The Indegenisation Committee of the

Engineering Development Board, Energy Committee of OICCI, The Pakistan
Jute Mills Association, Pakistan German Business Forum, Pakistan France
Business Alliance and Young Presidents Organization. Mr. Valjee's association
with non-profits include National Skills University, Family Educational Services Foundation and The Hunar Foundation.

Mr. Valjee acquired business education from IBA Karachi and executive education from the Stanford-NUS program
and from the Yale School of Management.

He has been on the Board of PCL since 5-5-2020.

Mr. Kamal A. Chinoy

Executive Director

Mr. Kamal A. Chinoy is a graduate of Wharton School, University of Pennsylvania,

USA. He is the Honorary Consul General of the Republic of Cyprus. Currently
he is Chairman of International Industries Limited, International Steels Limited,
IIL Americas Inc. and IIL Construction Solutions (Pvt) Ltd., and Director of IIL
Australia Pty Ltd. He has served as Chairman of the Aga Khan Foundation
(Pakistan) and Jubilee Life Insurance Co, and also as a Director of Pakistan
Centre of Philanthropy, Atlas Insurance Limited, Pakistan Security Printing
Corporation, NBP Fullerton Asset Management Limited, Atlas Battery Ltd, ICI
Pakistan Limited, Askari Bank Limited, First International Investment Bank,
and Atlas Power Limited.

He also served as CEO of Pakistan Cables Ltd for 27 years. He was an instrumental part of the team that negotiated
the exit of BICC from the ownership of the Company in the early 1990’s. Then in 2010 he led the effort to attract General
Cable, a Fortune 500 company, as an equity investor in PCL.

Mr. Kamal A. Chinoy is a member of the Executive Committee of the International Chamber of Commerce, Pakistan
and is also a past President of the Management Association of Pakistan (MAP). He has also served on the Admissions
Committee of Aga Khan University and the Alumni Admissions Committee for the University of Pennsylvania. He has
also been a member of the Board of Governors of Army Burn Hall Institutions.

He has been a member of the Pakistan-UK Forum for Investment and Technology (under the Board of Investment, GoP)
and the Experts Advisory Group for Engineering Goods for the Fifth Five Year Plan for the Government of Pakistan.

He is on the Board of PCL since 31-5-1992.

Annual Report 2023 | 48

 Mr. Fahd K. Chinoy
Chief Executive Officer

Mr. Fahd K. Chinoy holds an MBA from INSEAD (France) and a Bachelor of Arts
in Economics and Political Science from the University of Pennsylvania, USA.
He is currently CEO of Pakistan Cables Limited.

Mr. Fahd K. Chinoy has previously served in the banking industry, having worked
with TD Securities in New York and Toronto as an Associate in various
departments including Loan Syndications and Corporate Banking.

He serves on the Board of Directors of Atlas Battery Limited, MCB Arif Habib
Savings and Investments Limited and the Amir Sultan Chinoy Foundation. He
also serves on the Board of Advisors for NOWPDP and holds the position of
President of the Board of Governors for Pakistan Society for Training &
Development (PSTD). He is a ‘Certified Director’ from the Pakistan Institute of
Corporate Governance and has previous served on the Board of Focus
Humanitarian Assistance Pakistan.

He is on the Board of PCL since 05-05-2017.

49 | Pakistan Cables Limited

Committees of the Board
HUMAN RESOURCE AND REMUNERATION COMMITTEE

Composition
Director Designation
Ms. Spenta Kandawalla Chair
Mr. Arshad Mohsin Tayebaly (Appointed on 5th May 2023) Member
Mr. Mazhar Valjee Member
Mr. Kamal A. Chinoy (Appointed on 5th May 2023) Member
Mr. Fahd K. Chinoy Member
Mr. Roderick Macdonald (Retired on 4th May 2023) Member

Number Of Meetings
Two HRRC meetings were held in the year.

Attendance
Ms. Spenta Kandawalla 2/2
Mr. Mazhar Valjee 2/2
Mr. Roderick Macdonald 2/2
Mr. Fahd Kamal Chinoy 2/2

TERMS OF REFERENCE

Objectives
The Human Resource and Remuneration Committee (c) Secretary
(HRRC) is a standing committee of the Board of Directors • The Head of HR or the Company Secretary,
(BoD) mandated to consider and make recommendations will act as Secretary to the HRRC as decided
to the BoD on the Company’s major human resource by the HRRC.
management policies, strategies and plans.
Tenure
Composition (a) The tenure of the HRRC will be the same as the
(a) Members tenure of the BoD.
• The HRRC shall comprise of at least three Directors; (b) The terms of reference of the HRRC will be
• Majority of these Directors shall be reviewed at least every three years.
non-executive Directors of whom at least one
member shall be an independent Director; Rules
• The Chief Executive Officer (CEO) may be (a) Quorum:
included as a member. • The quorum will be two members.

(b) Frequency of Meetings:

(b) HRRC Chair
• The HRRC shall meet at least once in each financial
• The Chair will be an independent Director;
year and may meet more often as desired.
• While the CEO may be a member of the HRRC,
he shall not be the Chair;
(c) Notice:
• In the absence of the Chair, the remaining
• The notice of the meeting will be circulated by
members may appoint another member as
the Secretary HRRC preferably one week prior
acting Chair for the meeting.
to the date of the meeting.

Annual Report 2023 | 50

 (d) Agenda: Duties and Responsibilities
• The agenda of the meeting shall be (a) The HRRC’s recommendations will require
development by the Management in approval of the BoD to be implemented.
consultation with the HRRC Chair.
(e) Documents: (b) The HRRC will:
• To the extent possible, notes and other related • Assess organization structure;
documents shall be provided for each agenda
item. Efforts will be made to provide this data • Recommend to the BoD succession planning for
to the members one week prior to the meeting. business critical positions, including that of the CEO;

(f) Minutes: • Recommend to the BoD, for consideration and

• Minutes of the meetings will be made by the approval, a policy framework for determining
Secretary and circulated to the members within remuneration of directors (both executive and
seven days of the meeting, or prior to the non-executive directors and members of senior
subsequent BoD meeting, whichever is earlier. management);

(g) Attendance: • Undertake, annually, a formal process of evaluation

• The Committee may invite any person to of performance of the BoD as a whole and its
attend meetings; committees either directly or by engaging external
• The Secretary shall get the signatures of each independent consultant and if a consultant is
member attending the meeting and keep a appointed, a statement to that effect shall be made
record of the same; in the Directors’ report disclosing name,
• The CEO, if a member of the HRRC, shall not qualifications and major terms of appointment;
be a part of the proceedings where his/her
compensation/performance is being • Recommend human resource management
discussed/evaluated. policies to the BoD;

(h) Reports: • Recommend to the BoD the selection, evaluation,

• The HRRC shall present the minutes, including development, compensation (including retirement
findings and recommendations of the HRRC benefits) of Chief Operating Officer, Chief Financial
meetings to the BoD; Officer, Company Secretary and Head of Internal
• The HRRC shall provide all and any related Audit;
information required by the BoD.
• Consider and approve, on recommendations of the
(i) Amendments: Chief Executive Officer, the selection, evaluation,
• The BoD may at any time amend these development, compensation (including retirement
regulations or revoke any powers granted by it benefits) of for key management positions who
to the HRRC. report directly to Chief Executive Officer or Chief
Operating Officer; and
(j) Records:
• All documentation related to the holdings, • Where human resource and remuneration
proceedings and recommendations of the HRRC consultants are appointed, their credentials shall
shall be stored with the Secretary. be known by the HRRC and a statement shall be
made by them as to whether they have any other
connection with the Company.

51 | Pakistan Cables Limited

BOARD AUDIT COMMITTEE REPORT

Composition Companies (Code of Corporate Governance)

The Board Audit Committee of the Board of Directors of Regulations, 2019, International Financial Reporting
Pakistan Cables Limited comprises of three directors. The Standards and other applicable regulations.
Chairperson is independent non-executive directors, whereas
the other two members are non-executive directors. The Board (b) Reviewed and discussed the significant changes in
Audit Committee is composed of members who are financially accounting principles, financial reporting policies with
literate (as defined within clause 27 (1) (iii) of the Listed management and external auditors.
Companies (Code of Corporate Governance) Regulations, 2019)
and the Board Audit Committee as a whole possesses (c) Reviewed the significant issues related to the financial
significant economic, financial and business acumen. statements, made recommendations to address these
issues and followed up the actions taken by management.
Director’s Name Designation
(d) All related party transactions have been reviewed by the
Mr. Mazhar Valjee* Chair
Board Audit Committee prior to approval by the Board.
Mr. Akbar Ali Pesnani** Member
Mr. Ali H. Shirazi Member
(e) These financial statements present a true and fair
Mr. Roderick Macdonald Member
view of the Company state of affairs, results of
(Retired on 4th May 2023)
operations, profits, cash flows and changes in equities
of the Company for the year under review.
*Mr. Mazhar Valjee was appointed as Chair of Board Audit
Committee on 5th May 2023 to replace Mr. Akbar Ali Pesnani.
(f) The auditors have issued unmodified audit reports in
**Mr. Akbar Ali Pesnani stepped down from the position of
respect of the above financial statements in line with
Chair after concluding his tenure on 4th May 2023.
the Auditors (Reporting Obligations) Regulations, 2018
issued by SECP.
Meetings and attendance
Four Board Audit Committee meetings were held during (g) The Chief Executive Officer, one Director, and the Chief
the financial year ended June 30, 2023. Details of attendance Financial Officer have endorsed the financial statements
at the Board Audit Committee meetings are as follows: of the Company, while the Directors’ Report is signed by
Chairman and Chief Executive Officer. They acknowledge
Director’s Name Attendance their responsibility for true and fair presentation of the
Mr. Mazhar Valjee 4 out of 4 meetings Company’s financial condition and results, compliance
Mr. Roderick Macdonald 4 out of 4 meetings with regulations and applicable accounting standards
Mr. Akbar Ali Pesnani 4 out of 4 meetings and establishment and maintenance of internal controls
Mr. Ali H. Shirazi 4 out of 4 meetings and systems of the Company.

On the invitation of the BAC Chairperson, the Chief (h) Accounting estimates are based on reasonable and
Executive Officer, Chief Financial Officer, Company prudent judgment. Proper and adequate accounting
Secretary, and Head of Internal Audit were present in all records have been maintained by the Company in
the Board Audit Committee meetings. accordance with the Companies Act, 2017. The financial
statements comply with the requirements of the Fourth
Financial statements Schedule to the Companies Act, 2017 and the external
The Board Audit Committee has concluded its annual reporting is consistent with management processes
review of the Company’s performance, financial position, and adequate for shareholder needs.
and cash flows during 2022-23, and reports that:
(i) The Company has issued a Statement of Compliance with
(a) The financial statements of the Company for the year the Listed Companies (Code of Corporate Governance)
ended June 30, 2023 have been prepared on a going Regulations, 2019 which has also been reviewed and
concern basis under requirements of the Companies certified by the External Auditors of the Company.
Act 2017, incorporating the requirements of the Listed

Annual Report 2023 | 52

 (j) Understanding and compliance with the codes and (d) The Board Audit Committee has met regularly with
policies of the Company has been affirmed by the management to understand the risks that the
members of the Board, the management and Company faces and has reviewed the management of
employees of the Company. Equitable treatment of Company’s material business, to assess the
shareholders has also been ensured. effectiveness of those systems in minimizing risks
that may impact adversely on the business objectives
(k) Trading and holding of Company’s shares by Directors of the Company.
and Executives or their spouses and dependent
children were notified in writing to the Company Internal Audit
Secretary along with the price, number of shares, (a) The Company’s system of internal controls is sound in
form of share certificates and nature of transaction design and has been continually evaluated for
which were notified by the Company Secretary to the effectiveness and adequacy.
Board. All such holdings have been disclosed in the
Pattern of Shareholdings. The annual Secretarial (b) The Board Audit Committee has ensured the
Compliance Certificates are being filed regularly achievement of operational, compliance, risk
within stipulated time. management, financial reporting and control
objectives, safeguarding of the assets of the Company
(l) Closed periods were duly determined and announced and shareholders’ wealth, through assurances
by the Company, precluding the Directors, the Chief provided by the Internal Audit function.
Executive and Executives of the Company from dealing
in Company shares, prior to each Board meeting (c) The Internal Audit function has carried out its
involving announcement of interim / final results, assignments in accordance with annual audit plan
distribution to shareholders or any other business approved by the Board Audit Committee. The Board
decision, which could materially affect the share Audit Committee has reviewed material Internal
market price of Company, along with maintenance of Audit findings, taken appropriate action where
confidentiality of all business information. necessary or brought the matters to the Board’s
attention where required.
Risk Management and Internal Controls
(a) The review was to ensure that the internal control (d) The Board Audit Committee has provided proper
system including financial and operational controls; arrangement for staff and management to report to the
accounting system and reporting structure are Board Audit Committee in confidence, concerns, if any,
reasonably adequate and effective. about actual or potential improprieties in financial and
other matters. Adequate remedial and mitigating
(b) The Company has developed a sound mechanism for measures are applied, where necessary.
identification of risks and assigning appropriate
criticality level and devising appropriate mitigation (e) The Head of Internal Audit has direct access to the
measures which are regularly monitored and Chairperson of the Board Audit Committee and the Board
implemented by the management across all major Audit Committee has ensured staffing of personnel with
functions of the Company and presented to the Board sufficient internal audit acumen and that the function
Audit Committee for information and review. has all necessary access to Management and the right
to seek information and explanations.
(c) The Internal Audit Department is responsible for
providing assurance on the effectiveness and (f) Coordination between the External and Internal Auditors
adequacy of internal control and risk management was facilitated to ensure efficiency and contribution to
framework in managing risks within acceptable the Company’s objectives including a reliable financial
levels throughout the Company. reporting system.

53 | Pakistan Cables Limited

External Auditors The Board Audit Committee
(a) The statutory Auditors of the Company, M/s A.F The Board Audit Committee believes that it has carried
Ferguson & Co., Chartered Accountants, have out responsibilities to the full, in accordance with Terms
completed their audit assignment of the Company’s of Reference approved by the Board, which included
Financial Statements, and the Statement of principally the items mentioned above and the actions
Compliance with the Code of Corporate Governance taken by the Board Audit Committee in respect of each
for the financial year ended June 30, 2023. of these responsibilities. Evaluation of the Board’s
performance, which also included members of the Board
(b) The Board Audit Committee has discussed the audit Audit Committee was carried out separately and is
process and the observations, if any, of the auditors detailed in Annual Report.
regarding the preparation of the financial statements
including compliance with the applicable regulations or
any other issues.

(c) The Auditors attended all the Board Audit Committee

meetings where their reports were discussed. The
Auditors also attended General Meetings.

(d) The Board Audit Committee has recommended the

appointment of M/s A.F Ferguson & Co., as External
Auditors of the Company for the year ending June
30, 2024.

Annual Report 2022-23

(a) The Company has issued a very comprehensive
Annual Report which besides presentation of the
financial statements and the Directors’ Reports of the
Company, also discloses other information much in
excess of the regulatory requirements to offer an in
depth understanding about the management style,
the policies set in place by the Company, its
performance during the year, and future prospects to
various stakeholders of the Company.

(b) The information has been disclosed in the form of ratios,

trends, graphs, analysis, explanatory notes and statements
etc., and the Board Audit Committee believes that the
Annual Report 2022-23 gives a detailed view of how the
Company evolved, its state of affairs and future prospects.

Annual Report 2023 | 54

 Management Team
Mr. Fahd Kamal Chinoy Ms. Mariam Durrani Mr. Imran-ul-Ghani Mirza
(Chief Executive Officer) (General Manager Marketing and Brands) (Senior Manager Industrial Relations)
MBA from INSEAD, Fontainebleau, MBA in Marketing from LLB, MPA, Masters in Industrial
France and BA in Economics and SZABIST, Karachi. Psychology, University of Karachi.
Political Science, University of Joined PCL in 2015. Joined PCL in 2015.
Pennsylvania, USA. Syed Amjad Wahab Mr. Khurram Shahzad
Joined PCL in 2008. (Business Unit Head - Aluminium Profile (Senior Manager - Trade)
Mr. Kamal A. Chinoy Business) MBA- Marketing, Bahauddin Zakariya
(Advisor) B.E. (Mechanical) University.
B.Sc. Economics, Wharton School, NED University, Karachi. Joined PCL in 2003.
University of Pennsylvania, USA. Joined PCL in 2020.
Mr. Marazban Godrej Talati
Joined PCL in 1992. Syed Asad Hussain Zaidi (Senior Manager Budgeting & Costing)
Mr. Waqas Mahmood (Head of Information Technology) ACMA- Institute of Management
(Chief Financial Officer) MBA-MIS, Preston University Accountants of Pakistan
Fellow Member of Institute of Joined PCL in 2023. Joined PCL in 1994.
Chartered Accountants of Pakistan, Mr. Azmatullah Bhalli Mr. Mohsin Jawed Lodhi
B.Com, University of Karachi. (Senior Manager Regional Sales Central) (Senior Manager Projects)
Joined PCL in 2008. MBA, University of Oklahoma, USA. BE (Mechanical),
Mr. Arshad Shafiq Joined PCL in 1999. NED University, Karachi.
(Director Operations) Syed Fuzail Ahmed Joined PCL in 2022.
B.E, NED University, MBA from (Senior Sales Manager North) Mr. Muhammad Danish Kazmi
IBA Karachi. MBA Marketing, University of (Senior Manager Production)
Joined PCL in 2021. Arid Agricultural, Rawalpindi. M. Phil, Hamdard University, Karachi.
Mr. Rao Salman Joined PCL in 2014. Joined PCL in 2019.
(Director Sales and Business Mr. Abdul Wassey Qureshi Mr. Noor-Ul-Hasnain Malik
Development) (Senior Manager Quality, Health, Safety (Senior Manager Production,
MBA, Institute of Business Management, & Environment) Wire & Cables)
B.E, NED University, Karachi. Master in Environmental Science, BA, Karachi University, DAE (Electrical),
Joined PCL in 2018. Bachelors in Chemical Technology, Sindh Board of Technical Education.
Mr. Aadil Riaz University of Karachi. Joined PCL in 1993.
(Director HR, ER/IR & Administration) Joined PCL in 2010.
Mr. Sajid Mehmood
LLB Karachi University, CIPD UK, Mr. Atta-ul-Hai Khan (Senior Manager Administration
MBA, PIMST Karachi. (Senior Manager Technical) and Security)
Joined PCL in Jan 2022. Diploma of Associate Engineer (DAE) Masters (Political Science), University of
Ms. Natasha Mohammad and B.E. (Mechanical Technology), Sargodha, MSc. (Management & Military
(Company Secretary & Head of Legal NED University. Joined PCL in 2014. Sciences) University of Karachi.
Affairs) Mr. Faraz Mustafa Joined PCL in 2021.
Barrister at Law, LLB (Hons), (Senior Manager Engineering) Mr. Shahid Jumani
University of Buckingham. BE (Mechanical), National University of (Senior Manager Supply Chain)
Joined PCL in 2020. Science & Technology (NUST). B.E. (Industrial Manufacturing), NED
Mr. Shahzad Anwar Joined PCL in 2022. University, MBA - SZABIST, Karachi.
(Project Head - Nooriabad) Mr. Imran Ahsan Shah Joined PCL in 2017.
B.E. (Mechanical), NED University, (Senior Manager Exports & Business Syed Muhammad Hasan
MBA, IBA Karachi. Development) (Senior Manager Internal Audit)
Joined PCL in 2013. BSc. (Hons) Actuarial Science from ACMA, Certified Management Account
CASS Business School, City University (CMA) & CA Finalist.
of London, U.K. Joined PCL in 2015.
Joined PCL in 2017.

55 | Pakistan Cables Limited

Executive
Management Committee
The mission of the Executive Management Committee is to support the Chief Executive Officer to determine and
implement the business policies within the strategy approved by the Board of Directors.

MEMBERS
Chief Executive Officer Chairman
Chief Financial Officer Member
Director Operations and Supply Chain Member
Director HR and Admin Member
Director Sales & Business Development Member
Business Unit Head APB Member
General Manager Marketing & Brands Member
Head of IT Member
Head of Internal Audit Secretary/Member
Company Secretary Member

ROLE OF THE COMMITTEE

The Committee is responsible for the following:

• Undertake performance reviews of all departments.

• Take decisions as necessary to improve efficiencies, operations, safety, reduce costs etc.
• Discuss, define and update HR policies.
• Assign tasks to various departments or on a cross functional basis.
• Review Company strategy and its implementation. Implement changes as required within the guidelines
approved by the Board of Directors.
• Explore new avenues for business, opportunities to enhance efficiencies and cost savings.
• Take on any other tasks assigned to it by the Chief Executive Officer or Board Committees.
• Deal with issues arising from Internal Audit reports.

COMMITTEE PROCEDURES
Formal meetings will be conducted on a quarterly basis or more frequently as circumstances dictate.

The Head of Internal Audit is the Secretary of the Executive Management Committee. A record will be maintained
of the minutes of the formal and informal meetings of the Executive Management Committee. Minutes of the
meeting will be circulated to all members of the Executive Management Committee within seven days of the
meeting.

In order to form a quorum at least 2 members need to be present including the Chief Executive Officer.

Annual Report 2023 | 56

 Organizational Structure

Chief Executive Officer

Executive Director

Chief Financial Officer Director Operations Director HR

GM Projects GM APB

Treasury & Engineering HR CoE

Budgeting

Accounting QHSE ER/IR Sales Manufacturing

Costing Production HRBP

Statutory & Supply Chain

Mgt. Reporting Admin & Security

Taxation Technical

57 | Pakistan Cables Limited

 Board of Directors

Director Sales

GM Marketing

Marketing ICT Corporate & Internal

Legal Affairs Audit

Domestic International

Annual Report 2023 | 58

 Chairman’s Review
On behalf of the Board, I am pleased to present the Annual Report and Audited Financial Statement of the Company for the year ended June 30, 2023 to
our valued shareholders.
Despite a challenging operating environment, including unprecedented inflationary headwinds, import restrictions, supply chain disruption, a devaluing
currency, a balance of payment crisis and increasing interest rates, your Company posted a Profit after Tax of Rs. 724 million, which translated into an
earnings per share of Rs. Rs 14.62 /share. These results were due to improved gross margins, as your Company was able to successfully pass on rising
input costs to customers while managing to keep expenses under control.
Moreover, the Company continued to promote the brand and seek new opportunities for growth. During the year, the Company enhanced its focus on
exports, penetrating into new export markets and increasing global presence by adding customers in 5 new countries. The Company was recognized for
the 7th consecutive year at the 46th FPCCI Export Awards 2023.
Additionally, the Nooriabad factory is progressing well. With streamlined processes, optimized workflows, and cutting-edge technology implementation,
the Nooriabad factory will allow your Company to witness a surge in productivity and output. Nooriabad factory's focus on sustainable practices and
environmentally friendly measures has garnered praise from both the local community and regulatory authorities.
Apart from commercial operations, the Company realizes its responsibility towards environmental sustainability, and giving back to society has always
been one of the important cornerstones. The Company remained active on the Corporate Social Responsibility front and contributed to charitable organizations
working for the welfare and rehabilitation of the under privileged sections of society.
Governed by the Company’s CSR vision to transform lives, ASCEND, the Company’s first Cooperative Education Program to promote women in Science,
Technology, Engineering and Mathematics concluded its Module IV with approximately 4200 man hours completed to date. The module-based program
was developed by the Company to support the structured method of integrating classroom-based education with practical work experience in partner
industry providing students industrial experience alongside their academic proficiency.
The Company conducted a donation drive for the flood affected victims as a part of which employees and Directors were encouraged to make donations
to a non-profit organization of their choice which was matched by the Company. Additionally, the Company’s employees volunteered through ‘Employee
Volunteer Program’ at various organizations including the Panah Women's Shelter and government schools across 3 cities to conduct engaging and
interactive Science, Technology, Engineering, Arts and Maths (STEAM) sessions impacting approximately 300 students.
During the course of the financial year, the Board of Directors and its Sub-Committees worked with a marked level of diligence and proficiency to best
advise and guide the Company towards achieving its potential. Management put in considerable efforts to address various challenges and this is reflected
in the results. The Company has two (2) committees to assist the Board for its optimal performance:
• Board Audit Committee
• Human Resource and Remuneration Committee;
The terms of reference and details about the members of the above committees are provided on page nos. 52 to 54 and 50 to 51 respectively of the Annual Report.
The Company has a diverse and competent Board of Directors which holds to the Company’s vision and mission with the ultimate goal of serving the
interests of stakeholders. Our unwavering commitment to the Company’s Values (Teamwork, Agility, Passion, Innovation, and Transparency) helps us to
foster a conducive work environment for our employees. The Company ensures that it has the best possible talent, from all backgrounds, driving our growth
and innovation. We strive for everyone within the Company to take pride in their work, with a strong belief in the Company’s commitment to being trusted
not to compromise.
The Board of Directors lead and guide the Company through strategic planning with a focus on the future. The Company has implemented a strong
governance framework that supports effective and prudent management which is regarded as instrumental in achieving long-term success. The Board
of Directors have reviewed the Annual Report and Financial Statements, and are pleased to confirm that in its view, the Annual Report and the Financial
Statement, taken as a whole, are fair, balanced and comprehensive.
An annual self-assessment is carried out to determine the effectiveness and performance of the Board of Directors as a whole including the Board
Subcommittees. The assessment carried includes critical areas such as strategic planning, composition of the Board, policies and procedures and the
Board & CEO’s effectiveness. The outcome of this assessment is that the Directors are engaged in strategic matters, have put in place the required controls
and disseminated all the necessary information in a timely manner. The Directors are of the opinion that the Independent Directors are equally involved in
all decision-making matters.
Looking back, the previous financial year was an unprecedented year and despite that your Company performed reasonably well. Considering the many
challenges still present in the business environment, one can expect the upcoming year to also be with challenges. I wish to thank all stakeholders for the
sustained trust and confidence placed in the Company. This support has enabled your Company to excel in providing world class and innovative products.
Going forward the Company’s focus will continue to be on delivering results to all our stakeholders. The Company is undertaking an ambitious initiative
with the endeavour to create long term value and reciprocate shareholder trust.

Mustapha A. Chinoy
Chairman
59 | Pakistan Cables Limited
Annual Report 2023 | 60
61 | Pakistan Cables Limited
 14.62 724

4200

51 50 54 52

Annual Report 2023 | 62

 Directors’ Report
The Board of Directors are pleased to present the 70th Annual Report along with the Audited Financial Statements
of Pakistan Cables Limited (the “Company”) for the year ended June 30, 2023.

Overview of the Company at ways to optimize systems to ensure proper visibility

and monitoring of key metrics and is placing a greater
The Company is a pioneer in Pakistan’s cable industry. It
emphasis on reporting through its ERP system. The
was established in 1953. The Company is principally
implementation of Oracle Process Manufacturing (OPM)
engaged in the manufacture of conductors, cables and
ERP module has been rolled out and implemented, thus
wires for transmission and distribution of electricity since
expanding the suite of Oracle modules now in use within
1953. The Company also sells PVC compound, copper
the Company.
rod, aluminium sections and wiring accessories as part
of its portfolio of products. As such the Company is
The Company has an integrated business approach
integrated upstream for two of its critical raw material
linking demand planning with the material and production
inputs, in the form of state of the art copper rod and PVC
planning to effectively deploy the order fulfilment process.
compounding plants.
Through increasing accuracy in forecasting, benefits have
started getting realized in several areas. The Company
The Company purchased a plot of land in Nooriabad, SITE
has enhanced production levels with capacity
for the purpose of establishing new manufacturing
enhancement and adjustments to support higher
facilities. Currently, construction and equipment
productivity.
installation and commissioning is underway. The new
facility is designed to support an approach towards
The Company closely monitors evolving customer needs
environmental sustainability and includes an urban forest
and technology trends. A comprehensive product
with approximately 50,000 trees on 3 acres. The new
development program is in place at a cross functional
facility will enable the Company to operate with improved
level. With a greater emphasis on customer safety in
efficiencies and will enhance capacities of several value
recent times, several customers are opting for cables
streams including copper rod, PVC compound and various
with greater safety features with greater flame retardancy
different type of cables. One critical addition to the
and low smoke in the event of fire. As such, the Company
Nooriabad facility is a state-of-art CCV line with German
is the first in Pakistan to have its Low Smoke Zero
engineering and technology that will manufacture
Halogen (LSZH) power cables type tested by the
medium voltage cables up to 69 KV, the highest voltage
internationally renowned KEMA Laboratory. As per our
grade rating for cables available in Pakistan.
knowledge, the Company is the only cable company in
Pakistan to have a fire testing laboratory for flame
Performance Review propagation testing. The Company has also added several
new products to its portfolio including certified solar DC
Development of Business cables, CAT 6 LAN internet cables and a new range of
Improvement in business processes is paramount for switches and sockets (wiring accessories).
any industry to stay competitive in today’s market. The
Company is engaged in continuous improvement The Company launched an e-store on September 20,
exercises to enhance efficiencies and benefit from 2019, becoming the first player in the cable industry in
technological advances in operational, technical and Pakistan to launch an e-commerce platform. The store
engineering functions. Initiatives are underway that will initially covered Karachi, Lahore, Islamabad and
continue to improve lead times, lower inventories and Rawalpindi. In May 2022, the e-store extended its services
reduce wastages. The Company is continuously looking to all cities and towns across Pakistan.

63 | Pakistan Cables Limited

Performance of Business Due to the adverse economic conditions prevailing in
The financial year 2023 has been a challenging year for the country during the year, the Company’s revenue
Pakistan’s economy. The political turmoil has plunged showed a modest growth. The Company achieved sales
the country into serious economic crisis. During the year of Rs. 21.7 billion, which is marginally higher by 2.3%
the country struggled to cope with mounting debt, compared to last year’s sales of Rs. 21.2 billion.
dwindling foreign exchange reserves, low exports,
elevated inflation, high energy cost, currency depreciation, Gross profit for the year amounted to Rs. 3,183.7
high interest rates and the imposition of super tax on million (14.7 % of sales), compared to last year’s gross
businesses. The devasting floods which hit the nation profit of Rs. 2,750.8 million (13.0% of sales). The higher
worsened the economic situation. Foreign exchange gross profit is attributed mainly due to better margins
reserves plunged to an all-time low, posing a serious and productivity improvement.
challenge for the country. The restrictions placed by State
Bank of Pakistan (SBP) on opening letters of credit, in Marketing, selling and distribution cost for the year
order to curtail imports, continued to affect the business amounted to Rs. 807.0 million as compared to Rs. 762.9
activities in the country. The State Bank of Pakistan million in the last year. The increase is mainly on
increased the policy rate by a total of 825 basis points account of higher carriage and forwarding expenses.
during the year to 22% to curb rising inflation. With Finance cost for the year are Rs. 954.2 million
elections expected this year in October 2023 / November compared to Rs. 313.8 million in the last year. The
2023, a protracted duration of political uncertainty is increase is due to high interest rates and increase in
finally expected to cede. long term borrowings during the year as compared to
last year.
The economy of the country stands at a pivotal juncture
where it has managed to avoid default after the As a result of the above factors, the Company earned
successful conclusion of $ 3 Billion Standby a profit after tax of Rs. 723.7 million as compared to
Arrangement (SBA) with the International Monetary Rs. 827.7 million in same period of last year. This
Fund (IMF) in early July 2023. The new program has resulted in earnings per share of Rs. 14.62 in the
provided a much-needed breather to address some of current year as compared to Rs. 16.72 in same period
the country’s immediate challenges. The successful of last year (re-stated).
resumption of the IMF program will help the country
to unlock funding from bilateral and multilateral Dividends and Appropriations
sources helping in rebuilding its foreign exchange For the current year, your Directors recommend NIL final
reserves. Saudi Arabia and UAE have already pledged cash dividend (2022: 65%). Furthermore, the Directors
$ 2 billion and $ 1 billion respectively which were have also recommended NIL final bonus shares (2022:
contingent on the resumption of IMF program. Fitch 15%). Moreover, the 1st interim bonus shares in the
Ratings have also upgraded Pakistan’s Long Term proportion of 10 shares for every 100 shares held (10%)
Foreign Currency Issuer Default Rating (IDR) to CCC and 2nd interim bonus shares in the proportion of 10
from CCC-. However, despite these developments, shares for every 100 shares held (10%) were issued. The
Pakistan faces many challenges ahead. appropriation of profit will be as under:

Annual Report 2023 | 64

 2022-23
Rs. ‘000

The net profit after tax amounted to 723,651

Other comprehensive Loss (17,497)
Total comprehensive income 706,154

To this is added un-appropriated profit

brought forward from last year 690,318

Transfer from surplus on revaluation of building – Own 17,583

1,414,055

APPROPRIATIONS:

Payment of Final cash dividend at the rate of Rs. 6.50 per share
(65%) for the year ended June 30, 2022 231,257

Issue of Final Bonus share in proportion 15 shares for every

100 shares held (15%) for the year ended June 30, 2022. 53,367

Issue of First Interim Bonus share in proportion 10 shares for every

100 shares held (10%) for nine months ended March 31, 2023. 40,915

Issue of Second Interim Bonus share in proportion 10 shares for every

100 shares held (10%) for nine months ended March 31, 2023. 45,006

Transfer to General Reserve for the year ended June 30, 2022 400,000

Leaving un-appropriated profit to be carried forward 643,510

1,414,055

Earning per share Rs. 14.62

Subsequent Effects

Transfer to General Reserve 643,000

65 | Pakistan Cables Limited

Global Copper and Aluminum Scenario On a monthly average basis, Copper Prices on London
The prices of cables, copper rod and conductors are Metal Exchange remained ranged bound between $ 7,530
closely linked to the global markets for Copper and to $ 8,370/t during the first half of the year. In January,
Aluminium. Both base metals are traded on the the prices started to rise and crossed $ 9,400/t mainly
London Metal Exchange (LME), the world's premier due to low inventories and recovery made after China
non-ferrous metals market. The price of both these lifted zero COVID restriction. However, prices gradually
metals are determined at the LME and any fluctuations lost steam since hitting their strongest levels in over
in Copper or Aluminium prices have a direct effect on seven months in January and plunged to $ 7,900/t in May
the pricing of our products. 2023 due to global copper demand weakness and bearish
market sentiment amid further hike in US interest rates
and closed at $ 8,210/t on June 30th 2023.

Avgerage Monthly L.M.E of Copper US$ / Ton

Jul 22 - Jun 23
10,000

9,000 8,955
8,836 8,814
9,000

8,367 8,234 8,386

US$ / Ton

8,030
7,961 7,735
8,000
7,621
7,530

7,000

6,000
Jul

Oct

Jan

Jun
Feb
Sep

Dec
Aug

Apr
Nov

Mar

May

Months

Cash Flow and Liquidity flow from operations of Rs. 999.9 million. The Company
The Company is constantly monitoring cash flow to was able to manage its operating cash flows by
ensure overall liquidity. During the financial year, the ensuring tight credit controls, and focusing on collecting
Company generated positive cash flow with a net cash and managing inventories over the course of the year.

Annual Report 2023 | 66

 Contribution to National Economy
The Company’s contribution to the National Exchequer by way of taxes, levies, sales tax, etc. amounted to Rs. 4,265 million
during the year (2021-22: Rs. 4,620 million).

Contribution To National Economy

5,000
4,620
4,600

4,200 4,265
Rs. in Millions

3,800

3,400

3,000 2,845

2,600

2,200 2,018 2,100

1,897
1,800

1,400

1,000

17-18 18-19 19-20 20-21 21-22 22-23

Years

Material Changes
• Board of Directors of the Company approved the
acquisition of the plot of land measuring 3.9 acres
in S.I.T.E Nooriabad, Sindh for the total price of Rs.
89.7 Million on 16th November 2022. Such land will
be utilized for manufacturing purposes and
establishing accommodation for the new
manufacturing facility of the Company in Nooriabad.

• The Board of Directors of the Company considered

and approved additional capital expenditure of Rs. Employee celebration events held in Karachi, Lahore and
5.6 billion for the expansion and consolidation of its Pindi to mark exemplary sales performance 2021-22.
manufacturing facility at S.I.T.E. Nooriabad on 23rd
June 2023. HR - Succession Policy
The Board of Directors has approved a Succession
Human Capital Planning Policy that allows the Company to identity
The Human Resource team is actively engaged in and appropriately train employees in order to cater to
developing, supporting, encouraging, and enabling the vacancies in key positions, so as to ensure a smooth
employees–building capacity of the Company. The Human transition of responsibilities and effectively continuous
Resource team facilitates the Company by harnessing operations of the Company.
human potential and channeling it in the right direction;
towards the achievement of the Company’s vision and Industrial Relations
mission. It is responsible for identifying recruiting, training • The industrial relations team assist the management
and staffing needs of respective departments and devises in creating an enabling work environment by
hiring strategies for bringing in the right people in the ensuring that the Company meets its social and legal
Company. Moreover, there is a strong emphasis on responsibilities towards its employees including
employee engagement and ensuring that the values of employment condition, quality of work life and
the organization are continuously upheld. maintaining HSE standards.

67 | Pakistan Cables Limited

• The department also provides professional advice / support exemplary initiatives. Summary of awards won during
to functions and departments on labor laws, rules of 2022-23 is listed below:
service, union agreements and disciplinary actions.
• The Company won the 9th FPCCI Achievement Award
• The total number of employees as on June 30, 2023 for the Urban Forest. This was a third consecutive win
was 549. The relationship with the employees for the Company.
remained cordial and conducive during the year.
• Recipient of 45th FPCCI Export Trophy Award.
Information Technology
In line with our commitment to regularly upgrade
communication systems and Information Technology (IT),
the Company is continuously striving in upgrading IT
infrastructure, communication and hardware resources. As
the Company’s IT needs grow, an IT Steering Committee is
in place to take timely decisions to adopt the required
controls and technologies to meet the organization’s need
and ensure suitable security and risk mitigation.

Midterm IT Strategy is to focus on providing a robust IT

Recipient of the 44th FPCCI Export Award 2022.
infrastructure in the new Nooriabad facility and addressing
areas for improvement within the current facilities. An • Received 37th Corporate Excellence Award from
independent external audit was also conducted to identify Management Association of Pakistan.
the gaps and to determine the roadmap for enhanced
security protocols, policies & procedures, proactive • Recognised by the Large Taxpayers Office (LTO), Karachi
monitoring and risk management frameworks. for its contribution to the national exchequer.

• Won at the 16th Consumers' Choice Awards 2022 for

Awards the third time in a row.
During the FY 2022-23, the Company’s efforts was widely
lauded and recognised for its benchmark practices and • Recipient of the PSX Top 25 Companies Award 2021.

Risks and Opportunities Report

The Board of Directors carries out assessments of the principal risks facing the Company, including those that
would impact the business operations, performance and liquidity of the Company. Insofar, a summary of the
risks assessed are outlined below:

Source Mitigation Strategy

Strategic Risks

Changing technological Changing Monitoring changing specifications

requirements rendering existing specifications and market trends. Diversification of
products obsoletee product portfolio to cater to all
segments of the market. Emphasis on
R&D to develop new products.

Commercial Risks

Increase in imports of cables Governmental Lobby for change in Governmental

and wires Policies policies to protect indigenous industry
and provide a level playing field in
instances where imports are favoured.

Annual Report 2023 | 68

 Source Mitigation Strategy

Volatility in prices of metals London Metal The Company has comprehensive

Exchange risk management and procurement
strategies in place to mitigate risk
related to losses as a result of price
movements in copper and aluminium.

Low quality cables and counterfeit Undocumented The Company has taken several steps to
products from the un-organized production and counter this including engaging third
sector supply sector parties that are actively involved in IP
protection and the introduction of a
product verification system, which allows
consumers to verify the authenticity of the
product via sms or the internet.

Risk associated with inventory Varying supply Identification of the right mix and quantity
Demands of products to keep in our inventory to meet
customer orders and regular monitoring.

Increase in competition Market Adjust selling strategy, improve efficiencies

and enhance customer experience to stay
ahead of the competition. Maintenance of
quality of excellence.

Operational Risks

Breach of IT security Hacks, natural Stringent IT controls, regular

disasters, viruses audits and periodically monitoring
IT controls and cyber security risks
by the management and the Board.
Additionally, there are controls and
procedures in place for early
warning signs.

Energy unavailability Nationwide Establishment of a captive power

energy crisis plant and optimization of energy
mix at Nooriabad.

Loss of key personnel Market Development of a comprehensive

Dynamics succession plan that identifies
potential high achieving employees.

Financial Risks

Foreign exchange risk Rupee Reduced exposure to borrowings in

Depreciation foreign currencies and constant
monitoring of the exchange rate levels.
The Company imports a large
component of its raw materials and
where possible / feasible takes
forward cover on these imports. The
Company also regularly updates its
pricing models to reflect changes in
exchange rates.

69 | Pakistan Cables Limited

Sustainability • Conducted one off-site Workshop on “Safety First”.
The purpose of the workshop was to enhance
safety culture using second tier production
Environment, Social, Governance (ESG)
leadership as ignitors.
Policy and Outlook
The Board of Directors has approved an Environmental,
• OHS&E Re-Certification Audit in conformity with ISO
Social and Governance (ESG) policy that requires
45001 and ISO 14001 standards was carried out in April
incorporation of environmental, social and corporate
at Regional Office Lahore and Karachi by Bureau
governance issues into all aspects of the Company’s
Veritas Certification. The audit results were declared
operations, including its investment analysis,
successful and there was no non-conformity.
decision-making and ownership practices.

• Incident Management E-portal System for incident

The Company is a signatory of the UN Global Company
reporting and investigation was developed and
and one of the first 26 companies to sign the Business
launched. Following are the key benefits:
1.5oC Ambition for COP 2022 in Pakistan. Various ongoing
practices and business initiatives undertaken during
- Digital transformation from manual reporting
2022-23 uphold some of United Nations’ Sustainable
- User friendly interface for data entry
Development Goals (SDGs). The Company continues to
- Reporting can be done anytime from anywhere
operate as good corporate citizen and is investing in
- Quality of investigation and reporting
capacity building of a few key areas through its business
- Concise Dash board
operations and community upliftment initiatives that
contribute towards the following SDGs:
• Developed and socialized Process Safety
Management (PSM) Policy and Manual.
(a) SDG 5 Gender Equality
(b) SDG 6 Clean Water And Sanitation
• QMS Surveillance Audit in conformity with ISO 9001
(c) SDG 7 Affordable And Clean Energy
standard was carried out in December at Regional
(d) SDG 8 Decent Work And Economic Growth
Offices Pindi, Lahore and Karachi by Bureau Veritas
(e) SDG 12 Responsible Consumption And Production
Certification. The audit results were declared
(f) SDG 13 Climate Action
successful and there was no non-conformity.
HSE Code of Conduct
• New Integrated Management System Policy for
The Company reviewed and updated its ‘HSE Code of
QHSE Management Systems finalized and
Conduct’ in December 2021 which was socialized among
validated by Certification Body.
all management staff to ensure adherence with the HSE
rules and regulations, in their line organizations.
• Developed ‘Kaizen Corner’ for displaying kaizens
and improvement (5S) projects, effective learning
Initiatives and Achievements
and motivation of supervision staff, workers and
• Annual Safety Day was organized. It was a
management staff.
successful event in which personnel across factory
participated with great enthusiasm and eagerness.
• HSE procedure for Forklift Truck Management was
reviewed, updated and socialized. Forklift driver
permits were subsequently issued.

• Designated smoking areas were developed. No

smoking policy in other areas was emphasized.

• Ensured safe construction activities, initiated

In-house inspection process and conducted
inspections for cranes, loaders, excavators, forklift
trucks, rigging gears, power tools and full body
harnesses etc.
Annual Safety Day celebrated at Pakistan Cables factory.

Annual Report 2023 | 70

 • Developed QHSE notice board and displayed QHSE • The Company is investing in setting up a water
policies, certifications and emergency evacuation treatment plant at its upcoming manufacturing
plan, visitors’ safety guideline and emergency facility in Nooriabad, Sindh. The treatment plant will
contact numbers located in RMS and CCR Plant. enable water conservations and its reuse for
plantations, etc.
• On quarterly basis, Independent Environmental
Monitoring Consultant carried out audit in Environment
compliance with NOC for Initial Environment (SDG 12 & 13)
Examination, issued by Sindh Environmental The Company prides itself on manufacturing products
Protection Agency (SEPA). The audit results were that are environmentally friendly. The Company is in the
declared successful. business of producing the highest quality wire and cables
in Pakistan as per international standards. Due to the
• Civil Defense Director Audited the use of high-quality copper in the production of the cables,
under-construction site and inspected firefighting the cables result in the conservation of electricity due to
equipment’s on shop floor and verified other lower line losses. Similarly, the company manufactures
associated protective arrangements related to first special cable for solar applications and aluminium
aid kits, trained staff/ workers in firefighting. The sections, as an alternative to wood windows and doors,
audit results were declared successful. helping in reducing de-forestation.

• Asst. Director ‘Safety and Occupational Health’ Efforts Made by the Company to Overcome The
from Labor Department, Govt, Sindh audited the Energy Crisis
site and appreciated the efforts being made by the In addition to other reported energy conservation
Company towards safety compliance and house endeavors to redress the energy crisis, the Company has
keeping during the phase of construction activities. developed its own captive power plant to supplement the
The audit results declared as successful. utility’s energy supply in order to reduce the pressure on
the energy sector.
Mitigation of Industrial Effluents
Impacts and Community Awareness Energy Conservation
(SDG 6) (SDG 7)
The Company is very conscious of its environmental The Company recognizes the importance of efficient use
footprint and its responsibility to society at large. As such, of limited energy resources and has worked towards the
it has implemented the following processes to reduce following endeavors to conserve energy:
the impact of its operations:
• “Importance of Earth Hour” awareness seminars
• Periodic cleaning of septic tanks/pits to ensure safe for employees.
and clean discharge of effluents.
• Pictorial instructions displayed on methods of energy
• Ensuring proper disposal of sludge / residue through conservation in day-to-day life.
Sindh Environmental Protection Agency (SEPA)
certified contractors. • To ensure safety and un-interrupted power supply,
health check of electrical panels was initiated.
• Ensuring that the test results of all waste emission
and effluents are within the Sindh Environmental • Company-wide mandate to turn off monitors, lights,
Quality Standards limit. fans and air conditioners at lunch and prayer time.

• “Clean and Green Environment” program for • Replacement of tube lights and bulbs with LEDs /
environmental awareness continued through energy savers.
orientation programs and flyers.
• Designing new structures in a manner that utilizes
natural lighting as much as possible.

71 | Pakistan Cables Limited

• The Company’s captive power plant is equipped with • Base line work has been completed for Green House
waste heat recovery and vapor absorption chillers, Gases (GHG) Accounting. Data has been submitted
and is able to more efficiently utilize gas and to consultant for review. The consultant will provide
electricity, thus ensuring energy conservation. guidance to establish Science Base Target Initiative
(SBTi) to achieve net zero emission by 2050. The
• At its upcoming manufacturing facility at Nooriabad, Company is working with Pakistan Business Council –
the Company will invest in renewables by setting up CERB on this initiative.
2MW solar power plant in order to generate energy
efficiently. • Ensured compliance with all environmental legal
obligations as well as meeting the international standard
Pakistan Cables Urban Forest of ISO 14001 (Environmental Management System).
Approximately 50,000 trees are planted on 3 acres of the
Pakistan Cables Urban Forest located at the Company’s • As a part of plastic reduction program, the Company
upcoming manufacturing facility in Nooriabad, Sindh. The has successfully introduced bio-degradable plastics
Pakistan Cables Urban Forest is the first and largest for packaging in the Company’s Aluminium Profiles
Miyawaki based urban forest on an industrial estate in Business. The packaging material was also validated
Pakistan. During the FY 2022-23, employee plantation drives by independent monitoring lab and the test result
continued at the Urban Forest to promote environmental confirmed the packaging material to be bio-degradable.
conservation. The Urban Forest was also visited by local
and international dignitaries which included the Former • Periodic monitoring of effluents, stack emissions,
Federal Minister – Climate Change, Mr. Malik Amin Aslam noise and ambient air quality.
and the UNDP, during the UNDP mission visit led by Mr.
Knut Ostby, Resident Representative UNDP Pakistan. • Establishment of secondary containment solutions
Visitors lauded the Company’s efforts towards sustainability. for handling liquid chemical / oils and lubricants.
Furthermore, the Pakistan Cables Urban Forest won the
14th NFEH Corporate Social Responsibility Award 2022 in • For ‘Clean and Green’ workplace environment,
the tree plantation category. barren spaces in the factory were turned into green
areas which includes outside are of ISO Training
Room, beside Engineering Contractors’ workshops
& in front of Raw Material Store.

• Independent Environmental Monitoring Consultant

visited the Company’s under construction site at
Nooriabad to carry out audit in compliance with NOC
for an initial environment examination as issued by
Sindh Environment Protection Agency (SEPA). The
audit results were declared as successful.

Mr. Knut Ostby, Resident Representative UNDP-Pakistan planting a tree

at the Company’s Urban Forest during the UNDP Mission visit in October 2022.
• To commemorate the World Environment Day (WED)
various activities were undertaken internally for
Towards Reducing Greenhouse Gases creating awareness among the Company employees
Emissions (GHG) and Carbon Footprints which included:
Several measures have been taken to control pollution
and maintain a clean, green HSE signages at the factory - Awareness session on Managing and Sustaining Clean
and healthy environment which includes prevention of & Green Environment was conducted among factory
process gas emission into the atmosphere, recycling of workers. An electronic flyer was emailed to employees
waste heat and continuous efforts to improve greenery with guidelines on environmental conservation. A quiz
and maintain a clean environment in and around the contest was also organized, in which both Management
factory through horticulture, better housekeeping, etc. and Non-Management employees participated.
Winners were awarded prizes.

Annual Report 2023 | 72

 - Reusable and recyclable canvas bags were distributed CSR Activities
Companywide to promote usage of eco-friendly bags During 2022-23, the Company’s social spends stood at
and beat plastic pollution, which was also the global approximately Rs. 24 million including CSR and donations.
theme for World Environment Day (WED) in 2023.
Key CSR Initiatives Included:
- 2nd Pakistan Cables Children’s Art Contest 2023
(PCCAC) was successfully held during June. 74 entries • Flood Relief and Rehabilitation Efforts
were received from employees’ children in Karachi, The Company invited staff to step forward and make
Lahore, Pindi, Abbottabad and Peshawar. The participants donations towards flood relief efforts as Pakistan
developed scientific models and illustrations based on declared a state of emergency during the floods that
WED’s theme, #BeatPlasticPollution. Distinguished panel ravaged through Sindh, Balochistan and KPK. Staff
of judges which included prominent artists of Pakistan donations were matched by the Company with an
and sustainability advocates evaluated all entries and equal amount which were disbursed among following
announced six winners at a prize distribution ceremony NGOs, actively involved in flood relief activities:
held at TDF Magnificence Centre, Karachi. Over 100 - Akhuwat
guests attended the ceremony which included all - ChildLife Foundation
participants with their parents. All participants were - Karachi Relief Trust (KRT)
awarded certificates and mementos. The 2nd PCCAC - SINA
2023 served as an engagement platform, focused on - Saylani Welfare Trust
promoting climate change awareness among employees
• Launch of the Pakistan Cables Employee Volunteer
and their families. Program
Upholding the Company’s vision to transform lives,
Employee Volunteer Program was rolled out in August
2022 with the aim to engage employees through
volunteering. In response to multiple calls for different
volunteering activities, Company employee’s response
was extremely enthusiastic. Approximately 85
employees participated in 3 major volunteering activities
during 2022-23 and directly impacting over 350
beneficiaries. Summary of activities and social impact
made summarized below:
Prize distribution ceremony of the 2nd Pakistan Cables Childrens - Child Life Foundation’s Children’s ER wing visited by
Art Contest 2023 held at TDF Magnifiscience Centre, Karachi.
08 volunteers to engage with the children admitted at
Corporate Social Responsibility Policy & ER. Gifts for 100 children were donated.
Outlook - Thirty-five volunteers visited the Clifton Urban Forest,
The Management of the Company and those charged Karachi and planted trees. The Company donated 2,000
with governance are well aware of their responsibility of trees to the Clifton Urban Forest in its bid to promote
being a corporate citizen are committed in this regard. environmental conservation.
The Company is committed to supporting causes that
focus on social uplifting in various communities in
Pakistan. Our areas of interest in this connection include,
but are not limited to, environment protection, education,
health and social development of the society.

Employee Volunteer Policy was developed and approved

for implementation during 2022-23 which is a milestone
achievement of the Company’s CSR Roadmap.

Clifton Urban Forest tree plantation activity conducted as

part of the Employee Volunteer Program.
73 | Pakistan Cables Limited
- The Company signed an MoU with the Pak Alliance for • Pakistan Cables-UET Scholarship Fund (Lahore
Math and Science Welfare Trust (PAMS) to partner for and Faisalabad)
employee volunteering through STEAM Pakistan. The Company renewed its pledge to support 08 female
STEAM Pakistan is a collaboration between the Malala students enrolled in Electrical Engineering Department
Fund and the Ministry of Federal Education & at UET Lahore and Faisalabad, the classes of which
Professional Training. Through the MoU, 34 Company commenced during November 2021. The Company
volunteers, including some of the Company’s leadership, has been providing scholarships to students at the UET
conducted interactive sessions with students enrolled since 2017-2018.
in government secondary school promoting Science,
• The Amir Sultan Chinoy Foundation (ASCF)
Technology, Engineering, Arts and Maths (STEAM)
partners with DAWN Relief for flood relief and
across Pakistan. The collaboration impacted rehabilitation efforts in Bajara, Sindh.
approximately 300 students in 3 cities. Pakistan Cable The Amir Sultan Chinoy foundation is supported by
was also the most active corporate partner for the donations from the ASC Group Companies. As a response
STEAM program during the year. to the floods, in its first phase, ASCF made donations of
Rs. 3.6 million Karachi Relief Trust, Mama Baby
Foundation, Legal Aid Society, Robinhood Army offering
humanitarian assistance in Sindh. During the second
phase, the ASCF partnered with the Dawn Relief pledging
to support rehabilitation efforts. In November 2023, the
ASCF donated Rs. 7 million for rebuilding of Bajara located
in Sehwan, Sindh. In addition, ASC group member
company, International Steel Ltd. (ISL) was able to rope
in its partner, Cargill which donated USD 50,000 to Dawn
Relief’s efforts of rebuilding Bajara. With building materials
STEAM Safeer Session conducted by CEO Pakistan Cables Ltd. as part
of the MoU signed between Pakistan Cables and STEAM Pakistan. being provided by International Steel Ltd. (ISL),
approximately 90 homes out of the 150 homes were
successfully built by Dawn Relief in Bajara by March 2023.
• Pakistan Cables ASCEND In the year, the Company collaborated with selected
Completes its Second Year (SDG 5)
implementation partners to drive its CSR agenda
ASCEND, the Company’s flagship platform to - Aga Khan Cultural Heritage Services
promote STEM based education among women in - NED University, Karachi
Pakistan completed its second consecutive year. Set - NOWPDP
up as a cooperative education program offering - STEAM Pakistan
academic scholarships and internship opportunities - University of Engineering & Technology (UET), Lahore
to female students from the NED University, Karachi,
ASCEND proves to be an inspiring example in the National Causes of Donations
industry and has been lauded by the students, During 2022-23, the Company donated towards meaningful
professionals and academia widely. The Company causes of national significance, which include but may not
had signed an MoU with the NED in June 2022 which be limited to:
establishes the Co-operative Education Program in • Akhuwat
Karachi, which provides female students industrial • Amir S. Chinoy Foundation
experience alongside their academic development. • Bait-ul-Sukoon Cancer Hospital
• ChildLife Foundation
• Dar ul Sukoon
• Karawan-e-Hayat
• Karachi Relief Trust
• SIUT
• SINA
• The Kidney Centre
• Patient Aid Foundation
• Panah Foundation
ASCEND Module 3 & 4 completed during FY 2023.
Annual Report 2023 | 74
 Consumer Protection Measures other characteristic protected by federal, state or
(SDG 12) local laws. We follow this for all terms and conditions
The Company continues to enhance its accessibility for of employment, including recruiting, hiring, placement,
consumers ‘convenience. During 2022, the helpline integration promotion, termination, layoff, recall, transfer, leaves
project was completed as a result of which consumers have of absence, compensation and training.
access to the Company’s Call Centre by dialing in the
Company’s UAN number at +92-21-111-CABLES
(+92-21-111-222-537). The Pakistan Cables product
verification facility continued to be an integral feature
enabling consumers to verify their purchase products for
authenticity. Consumers can verify the purchased product
by submitting the PIN numbers through any of the following
channels: SMS, Website, and WhatsApp.

The product verification facility is also available on Pakistan

Cables’ WhatsApp and the Loyalty Club App, a mobile app
Pinktober Celebrated by the ASC Group by hosting the first lady
launched for Loyalty Club members in May 2022. Majority of Pakistan Mrs. Samina Alvi at a seminar in October 2022.
of the verifications were received via WhatsApp making
it a highly accessibly feature for consumers. • In particular, the Company strives towards providing
an empowering, safe and conducive environment for
The emphasis on promoting these facilities among users is women. Currently female employees constitute 9.6
to re-emphasize the Company’s position on being committed percent of the Management workforce. The Company
towards fostering ethical practices in the market. will continue to focus towards inducting more females
at all management levels. The Company has
celebrated events like International Women’s Day
(break the bias) and an awareness learning sessions
on gender sensitization.

Launch of Loyalty Club Application was supported

by market activations in 18 cities.

Diversity Equity & Inclusion & Equal

Employment Opportunities
International Womens’ Day celebrated on
• Equal treatment for all employees and ensuring a 8 March 2023 by ASC Group.
discrimination free environment is one of the main
features of the Company’s objectives. The Company • The Company believes in its policy on Diversity &
recognizes the role of people with diverse and Inclusion, which underlines the commitment to
multicultural backgrounds and beliefs systems. establishing a thoroughly diversified and inclusion
culture across the organization.
• We provide equal employment opportunities to all
employees and applicants for employment and
prohibit discrimination and harassment of any type
without regard to race, color, religion, age, sex,
national origin, disability status, genetics, sexual
orientation, gender identity or expression, or any

75 | Pakistan Cables Limited

Harassment Policy The HSE Endeavors Targeted at Occupational
• To confirm the Company's commitment to eliminate Health and Safety include:
all forms of discrimination, bullying, harassment • Machine guarding
and victimization in the Company that can create a
threatening and intimidating work environment and • Use of PPEs on the factory floor.
adversely affect job performance, health and
well-bring of employees, a revised Anti harassment • Awareness seminars on adverse effects of eating
policy was introduced in accordance with the and spitting of pan and gutka.
"Protection Against Harassment of Women at
Workplace Act 2010". • Lock out and tag out programs were initiated to
prevent electrical incidents.
• This policy is a guideline to identify acceptable and
unacceptable behaviors common understanding on • Inspection was conducted for all lifting accessories by
reporting and reprimand mechanism. The policy has 3rd party inspection body, M/s SGS, and as identified,
also been cascaded through learning sessions across the required lifting accessories were replaced.
the organization.
• Provision of portable fire hydrant trolleys.
Employing People with Disabilities
The Company considers it a social and moral • Monthly health and hygiene surveys were conducted.
responsibility to accommodate people who are differently
abled and ensure that their needs are not a barrier to • Designated smoking areas were developed. No
their employment. Currently there are twelve people who smoking policy in other areas was emphasized.
are differently-abled people employed with the Company.
The Company’s new factory in Nooriabad, is being • General medical health checkups of all employees
designed to have access points and facilities in place for were conducted by the Company’s doctor.
people with disabilities.
• Pulmonary function test was conducted for
Occupational Health and Safety individuals working in the anodizing area and
(SDG 8) de-bagging / raw material charging areas at PVC
Protecting the health and safety of our people and ensuring plant and powder replicator.
a healthy working environment is of great importance to
the Company; as such, the Company is committed to • OHS&E Management System regarding
working towards designing a workplace that minimizes “Construction Safety” were prepared and
work related risks and occupational health and safety. The implemented for the new factory site in Nooriabad.
Company has a comprehensive Health, Safety and
Environment (HSE) management system and an HSE policy. Training and Development
Every employee’s obligation to comply with HSE Safety culture was endorsed through the year via various
requirements is ensured through a robust training program training sessions. As a way forward, the Company
and self-audits, internal audits and periodic management launched an e-learning initiative in the form of HSE
reviews. HSE internal and external sequential audits of all modules, as this provides a new platform to supplement
departments are conducted to evaluate compliance. The ongoing OHS&E trainings, development and learning
respective procedures are periodically updated to ensure programs. During the year, a total of 1,647 man-hours
accident-free work place by encouraging instant reporting were spent on different OHS&E sessions.
of all incidents including near misses, followed by rigorous
investigations to incorporate avoidance of future recurrences.
The Company was also amongst a handful of companies in
Pakistan to receive the prestigious award from the National
Forum for Environment and Health’s at the 7th, 8th, 10th,
12th and 16th Annual Environment Excellence Awards.

Annual Report 2023 | 76

 Governance the Company’s operations and the adequacy of its internal
financial controls by approving, inter alia, its financial statements,
reviewing internal and external audit observations, if any, and
Office of the Chairman of the Board of
recommendation of dividends. The Board of Directors, on the
Directors and the Chief Executive Officer
recommendation of the Board Audit Committee, has also
The office of the Chairman of the Board of Directors and the
approved a Business Continuity Plan and a Disaster Recovery
Chief Executive Office (CEO) of the Company are held
Plan for the Company to implement.
separately, with a clear division of roles and responsibilities.

The Board of Directors has reviewed and approved formal

Role of the Chairman of the Board of Directors
policies for conducting business and monitoring/ mitigating
The principal role of the Chairman of the Board of Directors
the Company’s level of risk tolerance and ensures their
is to manage and to provide leadership to the Board of
monitoring through an independent Internal Audit Department
Directors of the Company. The Chairman is accountable to
which continually monitors adherence to Company policies.
the Board of Directors and acts as a direct liaison between
the Board of Directors and the Management of the Company,
through the CEO. The Chairman acts as the communicator
Directors Remuneration
The Company has a policy in place that ensures formal and
for Board of Directors decisions where appropriate.
transparent procedures for fixing the remuneration of
Directors and no single Director is involved in determining
Role of the Chief Executive Officer
his/her own remuneration. Remuneration levels are kept
The CEO is responsible for leading the development and
at a reasonable level in order to attract and retain directors,
execution of the Company’s long-term strategy with a view
however at all times, care is taken that such level does not
to creating shareholder value. The CEO’s leadership role
compromise independence.
also entails being ultimately responsible for all day-to-day
management decisions and for implementing the
Company’s objectives. The CEO acts as a direct liaison
Meetings of the Board of Directors
The Board of Directors meets at least four times per annum
between the Board of Directors and Management of the
in accordance with regulatory requirements. Board Meetings
Company and communicates to the Board of Directors on
are also called to discuss and decide on important and/or
behalf of Management.
urgent matters if so required.
The Board of Directors and its Committees
The Board of Directors met 7 times during the fiscal year
The Company has a Board of Directors comprising of nine
2022-2023 with the attendance of such meetings is as follows:
members, the details of whom are given on pages 45 to 49.
The Board of Directors has formed two committees, namely
Name of Director Attendance
the Board Audit Committee, the details of which are given on
pages 52 to 54, and the Human Resource and Remuneration
Mr. Mustapha A. Chinoy 7/7
Committee, the details of which are given on pages 50 to 51.
Mr. Shoaib Javed Hussain- SLIC 7/7
Role and Responsibilities of the Board
Ms. Spenta Kandawalla 6/7
of Directors
The members of the Board of Directors are fully aware of their Mr. Akbar Ali Pesnani 7/7
responsibilities collectively as well as on an individual basis. Mr. Ali H. Shirazi 6/7
The Board of Directors actively participates in all major Mr. Arshad Mohsin Tayebaly
decisions of the Company including approval of capital (Appointed on 5th May 2023) 3/3
expenditure budgets, investments, issuance of equity and debt
Mr. Mazhar Valjee 6/7
capital, related party transactions and appointments of key
managerial personnel. Mr. Kamal A. Chinoy 6/7
Mr. Fahd K. Chinoy 7/7
The Board of Directors, on the recommendation of the Board
Mr. Roderick Macdonald
Audit Committee, has approved a policy on Governance of
(Retired on 04th May 2023) 4/4
Risks and Internal Control Policy, through which it monitors

77 | Pakistan Cables Limited

Changes to the Board of Directors Annual Evaluation
Mr. Roderick Macdonald concluded his tenure and retired
on 4th May 2023. Following the Extraordinary General CEO
Meeting, Mr. Arshad Mohsin Tayebaly was elected as the In accordance with legal requirements, the appointment
Director effective 5th May 2023. The Board and of the CEO is approved by the Board of Directors and the
Management of the Company would like to put on record tenure of such appointment is for 3 years. The performance
the tremendous contribution Mr. Roderick Macdonald of the CEO is reviewed annually in the context of his role
put in towards the success of the Company during his and responsibilities in accordance with the Guidelines for
tenure on the Board. Performance Evaluation of the Board of Directors, CEO
and Chief Regulatory Officer issued by the SECP.
Director Orientation
The Chairman sends a welcome letter to newly appointed Board of Directors
Directors, along with relevant Company related documents. A comprehensive mechanism is in place for undertaking
Such new members of the Board of Directors are taken an annual evaluation of the performance of the Board of
through an induction process to familiarize them with the Directors, the Board Members and the Board Committees
Company and its strategic objectives, facets of the business, in accordance with the Listed Companies (Code of
critical performance indicators, financial position, key policies Corporate Governance) Regulations, 2019 and the
and role and responsibilities of the Board of Directors. Guidelines for Performance Evaluation of the Board of
Directors, Chief Executive Officer and Chief Regulatory
Director Training Program Officer issued by the SECP (the “Guidelines/ SRO 301
The following seven Directors have completed their (I)/2020 "). In accordance with the Guidelines, the annual
Director Training Programs offered by local institutions evaluation of performance is undertaken (facilitated) by
that meet the criteria specified by the SECP: an external independent evaluator at least once every three
• Mr. Akbar Ali Pesnani years. Documentation necessary for conducting the
• Mr. Ali H. Shirazi evaluation are duly circulated to all members of the Board
• Mr. Mazhar Valjee of Director and are required to be submitted with the
• Ms. Spenta Kandawalla Company Secretary. The results are consolidated and
• Mr. Shoaib Javed Hussain presented to the Board of Directors to discuss any
• Mr. Kamal A. Chinoy improvements/measures proposed.
• Mr. Fahd Kamal Chinoy
Conflict of Interest
Mr. Mustapha A. Chinoy is exempt from the requirements The Board of Directors has approved a policy which
of the training. mandates that in the event of any conflict of interest, or
potential interest, in any manner, the concerned
Mr. Arshad Mohsin Tayebaly has completed various trainings officer/employee shall recuse him/herself from
and has undertaken to complete the Director Training contributing in the determination of such matter. Moreover,
Program prior to the expiration of the requisite deadline. no officer/employee shall be involved in a situation in which
he/she might have a direct/indirect interest that conflicts,
Trading in shares of the Company by Directors/ or possibly may conflict, with the interests of the Company.
Executives, their spouses and minor children
No trading in shares took place during the year. Only Additionally, as per the Listed Companies (Code of
bonus shares were issued to the Directors/ Executives, Corporate Governance), 2019, every Director is required
their spouses and minor children in their capacity as to bring to the attention of the Board complete details
shareholders of the Company. regarding any material transaction which has a conflict of
interest for prior approval of the Board. The interested
Board Meetings held outside of Pakistan Directors neither participate in discussions nor vote on such
No meetings of the Board of Directors were held outside matters. Further, complete details of all transactions with
of the territory of the Islamic Republic of Pakistan. related parties are submitted to the Board Audit Committee

Annual Report 2023 | 78

 which recommends them to the Board for approval in each Whistle Blowing Policy
quarter. These transactions are also fully disclosed in the The Company ensures accountability and integrity in conduct
annual financial statements of the company. All Directors by devising a transparent and effective whistleblowing
are reminded of insider trading and avoid in the dealing of mechanism for alerts against deviations from policies,
shares during the closed period every quarter. controls, applicable regulations or violation from the code
of ethics. This policy is applicable to all individuals associated
Related Party Transactions with the Company and provisions for disclosures thereunder
In accordance with the relevant regulations, the Company in confidence, without fear of repercussions.
has a Related Party Transactions Policy approved by the
Board of Directors which governs the manner in which Communication
arm’s length and non-arm’s length related transactions The Company is committed to diligent and accurate
are dealt with. communication with its shareholders and the annual, half
yearly and quarterly reports are distributed within the
Additionally, the Company maintains a Related Party register
requisite time frame. The activities of the Company are also
in accordance with prevailing regulations.
regularly updated on its website: www.pakistancables.com,
which contains an Investor Relations section.
Insider Trading
The Company has a policy on insider trading. Closed periods
are announced by the Company prior to the announcement
Investors Grievance Policy
The Company has a policy in place to streamline and address
of financial results. Directors and Executives are only allowed
requests, grievances and complaints of its shareholders.
to trade in Company securities outside of the closed periods.
The Board of Directors has set out a definition for Stakeholder Engagement
“Executives” for the Company and reviews it annually. The Board of Directors believe in having an open
communication with Company stakeholders and promoting
Security Clearance of Foreign Directors transparency and visibility. The Board of Directors has
Every foreign Director who is nominated for election on the approved a Shareholder Engagement Policy the salient
Board of Directors of the Company is required to furnish the details of which are set out below:
requisite documents for their security clearance which are
then submitted to the Ministry of Interior for such clearance.

Stakeholders Value to the Company Management of Engagement

Shareholders Provision of capital which We acknowledge the invaluable

allows fulfillment of objectives support of our investors and retain
and vision. it by providing a steady return on
their investment.

Customers and Suppliers Our Suppliers are the support We operate in a manner that
system that allow us to operate supports our customers and
efficiently. Our customers loyalty suppliers in return by provision
is what enables us to realize our of flexible/favorable terms and
vision and goals. conditions of dealings as well as
ensuring timely payments.

79 | Pakistan Cables Limited

 Stakeholders Value to the Company Management of Engagement

Banks and other lenders Allows future planning, debt Prioritizing payment schedules
management in an efficient and provision of accurate and
low-cost manner that facilitates transparent information with
our operational efficiencies. respect to our dealings facilitates
us in keeping good terms with
the banks and lenders.

Media Enables us to keep our Multiple communication methods

customers and other are used, based on the needs of
stakeholders updated and aware the situation, to give out
of our products, schemes and information and update
other key information. our stakeholders.

Regulators Maintain a level playing field and We are responsible corporate

helps us be as transparent citizens and pride ourselves on
as possible. operating strictly within the legal
and regulatory framework.

Employees Form the foundation and Our regular engagement

cornerstone of our operations processes, HR events and policies
and are of extreme value to all seek to create a diverse and
the Company. inclusive work environment.

Community Comprises of all our other Measures are taken to reduce

stakeholders and we continually our carbon footprint as well as
strive to leave a positive impact give back to the community via
on it. CSR activities.

General Body Meetings • The Annual Report of the Company containing the
Annual General Meetings are held in accordance with notice for General Meetings is sent out to minority
prevailing law and Extraordinary General Body shareholders in the same manner as the majority
Meetings are held as and when required. On both such shareholders.
events, the Board of Directors is appropriately
represented and the shareholders have an opportunity • To encourage minority shareholders to attend General
to engage and communicate with the Directors. Meetings and participate in the affairs of the Company,
a proxy form is also attached along with the notices
Minority Shareholders of General Meetings to ensure their representation
Minority shareholders are encouraged to take part in and participation in the General Meetings, even if they
meetings: are unable to attend, personally.

Annual Report 2023 | 80

 • The Company ensures that there is dedicated Governance Practices Exceeding Legal
time-slot for questions and answers session in its Requirements
General Meetings so that the minority shareholders, The Company is commitment towards a culture where
in particular, can engage with the Board of Directors, compliance with prevailing laws and regulations is the bare
and raise any queries that they may have with regards minimum standard. The Company actively strives to adopt
to the Company’s performance. This encourages a the best practices in industry and governance in order to
healthy attendance from the minority shareholders ensure that it remains the best-in-class. Our internal controls
in the Company’s General Meetings. are focused on ensuring that the Company maintains its
superlative reputation. The Company in the past has
Corporate Briefing Session proactively complied with many additional requirements,
The Company carried out two corporate briefing session in which were not mandatory at that time. Some of the
the year. examples are:

• The Board of Directors of the Company have, on more

than one occasion, had more than the minimum
requirement of one female director.

• The requirement for the Chief Executive Officer and

the Chairman to be separate individuals was
introduced through Code of Corporate Governance,
2012 whereas the Chief Executive Officer and
Chairman of the Company have been separate since
at least the last thirty years.
Corporate Briefing sessions were hosted by the Company at
PSX Auditorium twice during the FY 2023.
• The Listed Companies (Code of Corporate)
Safety of Records of the Company Governance Regulations, 2019 encourages all of the
Under the Company’s Document Retention Policy and Directors to be trained by June 30, 2022. The Directors
Schedule, all staff in all business units, regions, areas and of the Company are either trained or exempted from
functions must follow approved retention periods in the program, with the exception of Mr, Arshad Mohsin
managing their records. The Company believes that Tayebaly, who joined as a Director on 5th May 2023
documentation practices have a direct impact on product and has undertaken to complete the Director Training
quality and customer safety, and it implements the highest Program prior to the expiration of the requisite deadline.
standards of record safeguarding through our Document
Retention Policy. This helps ensure document accuracy, • Reporting requirements enhanced to best practice
consistency, integrity, availability and legibility. In line with guidelines issued by ICAP & ICMAP and the Pakistan
regulatory requirements and the Code of Conduct, the Stock Exchange’s Top 25 Companies Requirements.
Company ensures documentation practices meet its
requirements for design, management and control of • The Listed Companies (Code of Corporate
instructions, reports and master documents. The Company Governance) Regulations, 2019 also encourages at
also has checks in place that cover archiving requirements least one (1) female executive to complete the
for all stored data, both physical and electronic. The Directors’ Training Programme in a year, which the
Company continues to invest in technology and software to Company has complied with to ensure best practices
ensure the safekeeping for documents. in corporate governance, despite this being an
encouraged stipulation of the Listed Companies (Code
of Corporate Governance) Regulations, 2019.

81 | Pakistan Cables Limited

Statement under the Code of Corporate is expected to remain challenging going forward. Higher
Governance borrowing costs due to high interest rates, project financing
In compliance with the Corporate and Financial Reporting and growing working capital needs due to higher value
Framework of the Code of Corporate Governance we are imported raw materials will have an impact on profitability.
pleased to state that: The Company is of the view that pre-election spending
supported by a robust budget for the Public Sector
a. The financial statements, prepared by the Management Development Program should support demand in the
of the Company, present its state of affairs fairly, the result coming year. Moreover, if equipment imports are not
of its operations, cash flows and the changes in equity. restricted the demand for solar should continue to support
b. Proper books of accounts have been maintained by the demand for cables. In addition, continued investment
the Company. in grid infrastructure by the utilities sector and investment
into underground cabling for housing projects are also
c. Appropriate accounting policies have been expected to remain conducive. Despite this, there is
consistently applied in preparation of financial considerable uncertainty beyond the term of the current
statements and accounting estimates are based on IMF SBA, which may result in market weakness. The overall
reasonable and prudent judgments. inflationary and interest rate environment, will also have
d. International Financial Reporting Standards, as an impact on demand for your Company’s products.
applicable within the Islamic Republic of Pakistan, have A budget and forward plan is developed every year in
been followed in preparation of financial statements. alignment with the objectives and strategies of the Company.
e. The system of internal control is sound in design and These plans are approved by the Board of Directors annually
has been effectively implemented and monitored. and periodic reviews are conducted in order to monitor the
outcomes and modify the plans if needed. Number of
f. There are no significant doubts upon the different assumptions and data are used in preparing the
Company’s ability to continue as a going concern. plans, including, but not limited to, copper price forecast,
g. There has been no material departure from the best PKR / USD parity, interest rates, historical figures, market
practices of Corporate Governance, as detailed in the growth rates, pricing policy, capital expenditure plans etc.
Regulations of Rule Book of Pakistan Stock Exchange. Your Company’s expansion project in Nooriabad is
progressing well. With the Nooriabad project coming on-line
h. A summary of key operating and financial data of in phases, it is expected that the Company will benefit from
the Company is annexed. increased capacities and improved efficiencies.
i. Information about taxes, levies and value of investments Acknowledgement
in respect of employees’ retirement plans has been The Directors would like to place on record their sincere
disclosed in the notes to the Financial Statements. appreciation for the hard work and dedication shown by the
management and the employees of the Company
The key operating and financial data of the last six years is
throughout the year. On behalf of the Board of Directors and
given on page 112, the pattern of shareholding is provided
employees of the Company, we express our gratitude and
on page 193 and the details of the related party transactions
appreciation to all our valued customers, distributors,
are provided on page 185.
stockists, dealers and bankers for the trust and confidence
Forward Looking Statement reposed in the Company and look forward to their continued
Although Pakistan’s economy has been provided with some support and participation in sustaining the growth of the
breathing room through the recent USD 3 billion Stand By Company in the coming years.
Arrangement (SBA) with the IMF, the external environment

On behalf of the Board of Directors

Mustapha A. Chinoy Fahd Kamal Chinoy

Chairman Chief Executive Officer
KARACHI: August 25, 2023
Annual Report 2023 | 82
ROOT FOR
INNOVATION
CORPORATE GOVERNANCE
 INDEPENDENT AUDITOR’S REVIEW REPORT
TO THE MEMBERS OF
PAKISTAN CABLES LIMITED
Review Report on the Statement of Compliance Contained in Listed Companies
(Code of Corporate Governance) Regulations, 2019
We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Governance)
Regulations, 2019 (the Regulations) prepared by the Board of Directors of Pakistan Cables Limited for the year ended June
30, 2023 in accordance with the requirements of regulation 36 of the Regulations.

The responsibility for compliance with the Regulations is that of the Board of Directors of the Company. Our responsibility is
to review whether the Statement of Compliance reflects the status of the Company’s compliance with the provisions of the
Regulations and report if it does not and to highlight any non-compliance 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.

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 required to consider whether
the Board of Directors’ statement on internal control covers all risks and controls or to form an opinion on the effectiveness
of such internal controls, the Company’s corporate governance procedures and risks.

The 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. 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 June 30, 2023.

A. F. Ferguson & Co
Chartered Accountants

Karachi

Date: September 04, 2023

UDIN: CR202310073dyOGWZIvN

105 | Pakistan Cables Limited

Statement of Compliance With Listed Companies
(Code Of Corporate Governance) Regulations, 2019
Name of company: Pakistan Cables Limited (the “Company”)
Year ending: June 30, 2023

The Company has complied with the requirements of the Listed Companies (Code of Corporate Governance)
Regulations, 2019 (the “Regulations”) in the following manner: -

1. The total number of Directors are 9 as per the following:

a. Male: 8
b. Female: 1

2. The composition of the Board of Directors is as follows:

Category Names

Independent Directors 1) Ms. Spenta Kandawalla (Female Director)

2) Mr. Arshad Mohsin Tayebaly
3) Mr. Mazhar Valjee

Non-Executive Directors 1) Mr. Mustapha A. Chinoy (Chairman)

2) Mr. Shoaib Javed Hussain
3) Mr. Akbar Ali Pesnani
4) Mr. Ali H. Shirazi

Executive Directors 1) Mr. Kamal A. Chinoy

2) Mr. Fahd Kamal Chinoy (Chief Executive Officer)

3) The Directors have confirmed that none of them is serving as a director on more than seven listed companies,
including this Company;

4) The Company has prepared a Code of Conduct and has ensured that appropriate steps have been taken to
disseminate it throughout the Company along with its supporting policies and procedures;

5) The Board has developed a vision/mission statement, overall corporate strategy and significant policies of the
Company. The Board has ensured that a complete record of particulars of the significant policies along with
their date of approval or updating is maintained by the Company;

6) All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by the
Board/ shareholders as empowered by the relevant provisions of the Companies Act 2017 (the “Act”) and these
Regulations;

7) The meetings of the Board were presided over by the Chairman and, in his absence, by a Director elected by the
Board for this purpose. The Board has complied with the requirements of the Act and the Regulations with
respect to frequency, recording and circulating minutes of meeting of the Board;

Annual Report 2023 | 106

 8) The Board has a formal policy and transparent procedures for remuneration of Directors in accordance with the
Act and these Regulations;

9) Out of the nine Directors, the following seven Directors have obtained a certificate of Directors’ Training Program:
i. Mr. Shoaib Javed Hussain
ii. Ms. Spenta Kandawalla
iii. Mr. Akbar Ali Pesnani
iv. Mr. Ali H. Shirazi
v. Mr. Mazhar Valjee
vi. Mr. Kamal A. Chinoy
vii. Mr. Fahd Kamal Chinoy

Mr. Mustapha A. Chinoy is exempt from the requirement of Directors’ Training Program as per the
Regulations. Mr. Arshad Mohsin Tayebaly will undertake the Directors’ Training Program within
the stipulated time.

10) The Board has approved appointment of the Chief Financial Officer, Company Secretary and Head of Internal
Audit, including their remuneration and terms and conditions of employment and complied with relevant
requirements of the Regulations;

11) The Chief Financial Officer and the Chief Executive Officer duly endorsed the financial statements before approval
of the Board.

12) The Board has formed committees comprising of members given below:

a) Board Audit Committee: Mr. Mazhar Valjee (Chair)

Mr. Akbar Ali Pesnani (Member)
Mr. Ali H. Shirazi (Member)

b) Human Resource and Remuneration Committee: Ms. Spenta Kandawalla (Chair)

Mr. Arshad Mohsin Tayebaly (Member)
Mr. Mazhar Valjee (Member)
Mr. Kamal Chinoy (Member)
Mr. Fahd Kamal Chinoy (Member)

13) The terms of reference of the aforesaid committees have been formed, documented and advised to the committees
for compliance;

14) The frequency of meetings (quarterly/half yearly/ yearly) of the committees were as follows:

a) Board Audit Committee: Quarterly

b) Human Resource and Remuneration Committee: Biannually

15) The Board has set up an effective internal audit function who are considered suitably qualified and experienced
for the purpose and are conversant with the policies and procedures of the Company;

16) The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the
Quality Control Review program of the Institute of Chartered Accountants of Pakistan and 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 Chartered Accountants of Pakistan
and that they and the partners of the firm involved in the audit are not a close relative (spouse, parent, dependent
and non-dependent children) of the Chief Executive Officer, Chief Financial Officer, Head of Internal Audit,
Company Secretary or Director of the Company;

107 | Pakistan Cables Limited

17) The statutory auditors or the persons associated with them have not been appointed to provide other services
except in accordance with the Act, the Regulations or any other regulatory requirement and the auditors have
confirmed that they have observed IFAC guidelines in this regard;

18) We confirm that all requirements of regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations have been complied with.

19) Explanation for non-compliance with requirements, other than regulations 3, 6, 7, 8, 27, 32, 33 and 36 are below:

Non-Mandatory Requirement Reg. No. Explanation

Directors’ training 19(1) The Independent Director, Mr. Arshad Mohsin

It is encouraged that by 30 June 2022, all Tayebaly, could not attend the Directors’ Training
directors on the Board have acquired the Program due to tight schedule. However,
prescribed certification under any Company is arranging Directors’ Training
director training program offered by Program for him as early as possible.
institutions, local or foreign, that meet
the criteria specified by the Commission
and approved by it.

Nomination Committee: 29(1) The Board has not constituted separate

The Board may constitute a separate Nomination Committee and currently functions
committee, designated as the nomination required to be performed by Nomination
committee, of such number and class of Committee are being dealt with by Human
directors, as it may deem appropriate in Resource and Remuneration Committee.
its circumstances.

Risk Management Committee: 30(1) The Board has not constituted separate Risk
The Board may constitute the risk Management Committee and currently
management committee, of such number functions required to be performed by such
and class of directors, as it may deem committee are being performed by Board Audit
appropriate in its circumstances, to carry Committee and the Board.
out a review of effectiveness of risk
management procedures and present a
report to the Board.

On behalf of the Board of Directors

Mustapha A. Chinoy Fahd Kamal Chinoy

Chairman Chief Executive Officer
KARACHI: August 25, 2023

Annual Report 2023 | 108

ROOT FOR
DEVELOPMENT
FINANCIAL HIGHLIGHTS
111 | Pakistan Cables Limited
 Key Financial Data
2023 2022 2021 2020 2019 2018
Profitability Ratios
Sales Rs. in Mill. 21,653.0 21,167.7 13,145.1 9,086.1 9,704.3 9,561.0
Gross Profit Rs. in Mill. 3,183.7 2,750.8 1,526.5 860.3 1,145.7 1,137.1
Profit / (Loss) After Tax Rs. in Mill. 723.7 827.7 553.6 (91.8) 126.2 305.3
Dividend Rs. in Mill. - 320.2 284.6 - 88.9 195.7
Bonus issue Rs. in Mill. 85.92 53.4 - - - -
Gross Profit Percentage % 14.70 13.00 11.61 9.47 11.81 11.89
Net Profit / (Loss) to Sales % 3.34 3.91 4.21 (1.01) 1.30 3.20
EBIT Rs. in Mill. 2,084.6 1,644.7 942.3 218.8 365.0 477.4
EBITDA Rs. in Mill. 2,292.3 1,843.8 1,165.6 451.1 580.7 691.7
EBITDA Margin to Sales % 10.59 8.71 8.87 4.96 5.98 7.23
Return on Equity
- without revaluation reserve % 15.37 19.63 14.77 (2.91) 3.88 13.87
- with revaluation reserve % 7.62 9.19 10.35 (1.92) 2.59 9.24
Return on Capital Employed % 13.92 16.06 15.23 3.93 6.38 11.43

Liquidity Ratios
Current Ratio 1:1 0.9 : 1 1.2 : 1 1.5 : 1 1.8 : 1 1.6 : 1
Quick / Acid Test Ratio 0.6 : 1 0.5 : 1 0.7 : 1 0.8 : 1 1:1 1:1
Cash to Current Liabilities Times 0.02 0.03 0.02 0.03 0.03 0.19
Cash Flows from Operations to Sales Times 0.05 0.01 (0.01) 0.12 (0.03) (0.06)

Activity / Turnover Ratios

Total Assets Turnover Ratio Times 0.93 1.09 1.19 1.08 1.15 1.33
Fixed Assets Turnover Ratio Times 1.50 1.99 2.74 2.23 2.86 4.36
Stock-in-Trade Turnover Ratio Times 4.84 5.78 5.27 4.01 4.12 4.35
Number of Days in Stock-in-Trade Days 75 63 69 91 89 84
Trade Debts Turnover Ratio Times 6.12 7.19 6.94 5.69 5.61 6.81
Number of Days in Trade Debts Days 60 51 53 64 65 54
Creditors Turnover Ratio Times 12.68 20.77 25.02 25.46 47.71 32.46
Number of Days in Creditors Days 29 18 15 14 8 11
Operating Cycle Days 106 96 107 141 146 127

Investment / Market Ratios

Earnings / (Loss) Per Share - Basic & Diluted Rupees 14.62 16.72 15.56 (2.58) 3.56 9.94
Price Earning Ratio Times 5.67 6.00 9.61 (41.43) 39.49 18.11
Price to Book Ratio Times 0.18 0.25 0.48 0.45 0.59 0.74
Dividend (cash + bonus) Yield Ratio* % 20.00 21.45 5.35 - 1.78 3.21
Dividend Payout Ratio % 11.87 45.13 51.41 - 70.46 64.08
Dividend Cover Ratio Times 8.42 2.22 1.95 - 1.42 1.56
Cash Dividend Per Share Rupees - 9.00 8.00 - 2.50 6.00
Bonus Issue Per Share Rupees 2.00 1.50 - - - -
Market Value Per Share
- year end Rupees 82.92 139.50 149.50 106.89 140.52 186.95
- high during the year Rupees 172.49 194.00 174.00 145.00 215.75 352.88
- low during the year Rupees 81.00 128.00 104.01 85.00 109.00 186.01
Break-up value Per Share
- without revaluation reserve Rupees 95.11 118.51 105.38 88.74 91.48 84.21
- with revaluation reserve Rupees 191.77 253.14 150.34 134.08 137.10 119.26
- with revaluation reserve & investment
in related party at fair/market value Rupees 191.13 254.99 153.74 135.39 138.35 122.33

Capital Structure Ratios

Financial Leverage Ratio Times 1.46 1.16 1.06 0.76 0.73 0.91
Weighted Average Cost to Debt % 17.67 9.70 7.59 12.82 9.92 6.58
Debt to Equity Ratio 37 : 63 12 : 88 14 : 86 14 : 86 15 : 85 10 : 90
Interest Cover Ratio Times 2.18 5.24 4.90 0.77 1.94 3.57

* Based on market value of June 30

Annual Report 2023 | 112
 Financial Snapshot
Dividend vs Earnings / (Loss) Per Share

400 374 25.0

350

Earnings / (Loss) & Dividend Per Share

285 (Restated)
20.0
300 16.72
15.56
250 14.62 15.0
Rs. in Million

196
Dividend

Rupees
200
10.50
9.94
10.0
150 8.00 10.50
6.00 89
100 86
3.56 5.0
2.00
50
2.50
- -

(50) (2.58)
(5.0)
2018 2019 2020 2021 2022 2023
Total Dividend Dividend Per Share Earnings / (Loss) Per Share

Net Sales and Gross Profit

22,000 20.0%

20,000

18,000
14.7%
16,000 13.0%
Net Sales / Gross Profit

14,000
11.9% 11.8% 11.6%
Gross Profit %
Rs. in Million

12,000
9.5% 10.0%
21,653
10,000 21,168

8,000

6,000 13,145
9,561 9,704
4,000 9,086

2,000 3,184
2,751
1,137 1,146 1,526
- 860 -
2018 2019 2020 2021 2022 2023

Net Sales Gross Profit Gross Profit %

113 | Pakistan Cables Limited

Financial Snapshot
Cash Operating Cycle
150
140
130
120
110
100
90
80
Days

146 141
70
127
60
107
50 96
106
40
30
20
10
-
2018 2019 2020 2021 2022 2023

Liquidity

2.0

1.8 298.9
1.6
1.8
1.4
1.6
1.2 1.5

1.0 1.2
Ratio

0.8 1.0 1.0

0.6 0.9 1.0
298.9 298.9 0.8 298.9
0.7
0.4
0.6
0.5
0.2

-
2018 2019 2020 2021 2022 2023

Current Ratio Quick Ratio

Annual Report 2023 | 114

 Financial Snapshot
Fixed Assets and Capital Expenditure
15,000 14,456 4,500
14,000
3,999
4,000
13,000
12,000
3,500
10,647
11,000
10,000 2,805 3,000

Capital Expenditure
9,000

Rs. in Million
Fixed Assets
Rs. in Million

2,500
8,000
7,000
2,000
6,000
5,000 4,791
1,500
4,076
4,000 3,388
893 917 1,000
3,000 2,193 837
2,000
500
1,000 234

- -
2018 2019 2020 2021 2022 2023

Fixed Assets Capital Expenditure

Shareholders’ Equity
10,000 300

9,000
250
8,000 253

7,000
200
Breakup Value Per Share
Shareholders' Equity

192
6,000
Rs. in Million

Rupees

5,000 150
150
119 9,006 9,494
4,000 137 134

100
3,000
5,349
2,000 4,878 4,770
50
3,758
1,000

- -
2018 2019 2020 2021 2022 2023

Shareholders’ Equity Breakup Value Per Share

115 | Pakistan Cables Limited
Financial Snapshot
Profitability
900 12%
850
800 10.4%

750 9.2% 10%

700 9.2%
650
600 7.6% 8%

Return on Total Assets / Equity

550
Profit / (Loss) After Tax

500
Rs. in Million

450 6%

Percentage
400 5.0%
4.3% 4.2%
350
300 4%
3.1%
250 2.6%
200
150 2%
305 554 828 724
100 1.5%
50
126 (92)
- -
(1.1%)
(50)
(100)
(1.9%)
2018 2019 2020 2021 2022 2023 (2%)

Profit / (Loss) After Tax Return on Total Assets % Return on Equity %

Debt to Equity

15,000

13,000

11,000
Rs. in Million

63%
9,000

7,000

5,000 88%
86%
86%
3,000 85%
90% 37%
1,000
10% 15% 14% 14% 12%
-
2018 2019 2020 2021 2022 2023

Debt Equity

Annual Report 2023 | 116

 Analysis of Financial Statements
Horizontal Analysis - Statement of Financial Position
2023 2022 2021 2020 2019 2018
2023 vs 2022 2022 vs 2021 2021 vs 2020 2020 vs 2019 2019 vs 2018 2018 vs 2017
Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age

ASSETS
Non-current assets
Property, plant and equipment 14,445 35.90 10,629 122.42 4,779 17.51 4,066 20.34 3,379 54.57 2,186 0.92
Right-of-use assets 8 (72.07) 30 (42.79) 52 (34.82) 79 100.00 - - - -
Intangible assets 12 (32.69) 18 40.65 13 38.79 9 (0.07) 9 32.01 7 (2.31)
Investment in associated company 78 19.29 66 (45.67) 121 159.07 47 5.19 44 (54.20) 97 26.46
Long-term loans receivable 14 117.28 6 (19.42) 8 25.34 6 (11.25) 7 22.25 6 140.38
Long-term deposits and prepayments 6 7.04 6 (2.90) 6 (57.43) 15 (32.06) 21 100.00 - -
14,563 35.42 10,754 116.04 4,978 17.90 4,222 22.00 3,461 50.76 2,296 1.93

Current assets
Stores and spares 80 26.55 63 (5.94) 67 22.41 55 (5.96) 58 (9.14) 64 4.60
Stock-in-trade 3,761 (2.65) 3,863 54.30 2,504 31.62 1,902 (13.65) 2,203 12.72 1,955 2.08
Trade debts 4,147 1.03 4,104 47.29 2,787 68.61 1,653 (20.88) 2,089 5.94 1,972 49.49
Short-term loans and advances 181 98.81 91 51.64 60 150.76 24 (49.13) 47 (29.18) 67 238.49
Short-term deposits and prepayments 60 119.01 27 (15.02) 32 11.48 29 (49.83) 57 14.05 50 31.00
Other receivables 360 147.40 145 11.12 131 120.10 59 93.16 31 223.81 10 (68.87)
Taxation - payments less provisions 81 (56.81) 188 (48.48) 366 (5.67) 388 (2.36) 397 113.87 186 83.13
Cash and bank balances 161 (36.93) 256 137.65 108 26.43 85 (3.19) 88 (84.65) 573 991.80
8,831 1.06 8,739 44.35 6,054 44.32 4,195 (15.60) 4,971 1.95 4,875 37.82
Total assets 23,395 20.01 19,493 76.70 11,032 31.06 8,417 (0.17) 8,432 17.58 7,171 23.86

EQUITY AND LIABILITIES

Share capital and reserves
Issued, subscribed and paid-up capital 495 39.15 356 - 356 - 356 - 356 25.00 285 -
Advance against share capital - - - - - - - - - (100.00) 488 100.00
Capital reserves
Share premium reserve 1,595 - 1,595 - 1,595 - 1,595 - 1,595 202.22 528 -
Revaluation surplus on property (land and building)
- net of tax 4,785 (0.10) 4,790 199.49 1,599 (0.84) 1,613 (0.63) 1,623 46.99 1,104 0.11
Revenue reserves
General reserve 1,975 25.40 1,575 24.21 1,268 - 1,268 3.34 1,227 7.82 1,138 22.89
Un-appropriated profit / (loss) 644 (6.78) 690 30.15 530 (959.70) (62) (180.51) 77 (64.41) 215 (20.25)
Total shareholders' equity 9,494 5.42 9,006 68.38 5,349 12.13 4,770 (2.21) 4,878 29.80 3,758 20.78

Non-current liabilities
Long-term financing - secured 4,768 458.20 854 19.85 713 8.74 655 (3.71) 681 135.21 289 46.06
Deferred income - Government grant 565 126.77 249 817.15 27 254.27 8 100.00 - - - -
Lease liabilities 2 (63.59) 6 (45.26) 10 (58.65) 25 100.00 - - - -
Staff retirement benefits 57 14.55 50 12.88 44 3.30 43 36.28 31 (4.33) 33 12.15
Staff compensated absences 5 (34.87) 7 11.04 6 18.98 5 (85.50) 38 7.38 35 (0.59)
Deferred taxation 85 29.31 66 68.04 39 (33.31) 59 (38.34) 96 52.81 63 6.95
5,481 345.04 1,232 46.66 840 5.67 795 (5.96) 845 101.38 420 30.73

Current liabilities
Current portion of long-term financing 182 (53.73) 393 (2.81) 404 87.94 215 97.64 109 58.18 69 6.80
Current portion of lease liabilities 2 (76.11) 7 (23.66) 10 (82.42) 55 100.00 - - - -
Trade and other payables 3,182 19.31 2,667 86.39 1,431 32.38 1,081 33.04 813 6.62 762 (26.55)
Short-term borrowings - secured 4,001 (18.31) 4,897 129.54 2,134 72.84 1,234 (17.62) 1,498 (15.77) 1,779 92.97
Contract liabilities 700 (38.65) 1,142 41.44 807 312.90 195 (12.14) 223 (33.37) 334 19.77
Unclaimed dividend 33 10.10 30 18.59 26 (0.25) 26 (1.77) 26 9.74 24 (44.31)
Accrued mark-up 319 169.17 118 266.30 32 (29.08) 46 13.30 40 56.90 26 118.44
8,419 (9.03) 9,255 91.09 4,843 69.81 2,852 5.30 2,709 (9.51) 2,993 26.99
Total liabilities 13,901 32.55 10,487 84.53 5,683 55.83 3,647 2.62 3,554 4.12 3,413 27.44
Total equity and liabilities 23,395 20.01 19,493 76.70 11,032 31.06 8,417 (0.17) 8,432 17.58 7,171 23.86

Financial Position Analysis (Assets)

2018

2019

2020

2021

2022

2023

- 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Non-Current Assets Current Assets

117 | Pakistan Cables Limited

Vertical Analysis - Statement of Financial Position
2023 2022 2021 2020 2019 2018
Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age

ASSETS
Non-current assets
Property, plant and equipment 14,445 61.74 10,629 54.53 4,779 43.32 4,066 48.31 3,379 40.08 2,186 30.48
Right-of-use assets 8 0.04 30 0.15 52 0.47 79 0.94 - - - -
Intangible assets 12 0.05 18 0.09 13 0.11 9 0.11 9 0.11 7 0.10
Investment in associated company 78 0.34 66 0.34 121 1.10 47 0.55 44 0.53 97 1.35
Long-term loans receivable 14 0.06 6 0.03 8 0.07 6 0.07 7 0.08 6 0.08
Long-term deposits and prepayments 6 0.03 6 0.03 6 0.06 15 0.17 21 0.25 - -
14,563 62.25 10,754 55.17 4,978 45.12 4,222 50.16 3,461 41.05 2,296 32.01

Current assets
Stores and spares 80 0.34 63 0.32 67 0.61 55 0.65 58 0.69 64 0.90
Stock-in-trade 3,761 16.08 3,863 19.82 2,504 22.70 1,902 22.60 2,203 26.13 1,955 27.26
Trade debts 4,147 17.72 4,104 21.06 2,787 25.26 1,653 19.63 2,089 24.77 1,972 27.50
Short-term loans and advances 181 0.78 91 0.47 60 0.55 24 0.29 47 0.56 67 0.93
Short-term deposits and prepayments 60 0.25 27 0.14 32 0.29 29 0.34 57 0.68 50 0.70
Other receivables 360 1.54 145 0.75 131 1.19 59 0.71 31 0.37 10 0.13
Taxation - payments less provisions 81 0.35 188 0.97 366 3.32 388 4.61 397 4.71 186 2.59
Cash and bank balances 161 0.69 256 1.31 108 0.98 85 1.01 88 1.04 573 7.99
8,831 37.75 8,739 44.83 6,054 54.88 4,195 49.84 4,971 58.95 4,875 67.99
Total assets 23,395 100.00 19,493 100.00 11,032 100.00 8,417 100.00 8,432 100.00 7,171 100.00

EQUITY AND LIABILITIES

Share capital and reserves
Issued, subscribed and paid-up capital 495 2.12 356 1.83 356 3.22 356 4.23 356 4.22 285 3.97
Advance against share capital - - - - - - - - - - 488 6.80
Capital reserves
Share premium reserve 1,595 6.82 1,595 8.18 1,595 14.46 1,595 18.95 1,595 18.92 528 7.36
Revaluation surplus on property (land and building)
- net of tax 4,785 20.45 4,790 24.57 1,599 14.50 1,613 19.16 1,623 19.25 1,104 15.40
Revenue reserves
General reserve 1,975 8.44 1,575 8.08 1,268 11.49 1,268 15.06 1,227 14.55 1,138 15.87
Un-appropriated profit / (loss) 644 2.75 690 3.54 530 4.81 (62) (0.73) 77 0.91 215 3.00
Total shareholders' equity 9,494 40.58 9,006 46.20 5,349 48.48 4,770 56.67 4,878 57.85 3,758 52.41

Non-current liabilities
Long-term financing - secured 4,768 20.38 854 4.38 713 6.46 655 7.79 681 8.07 289 4.04
Deferred income - Government grant 565 2.41 249 1.28 27 0.25 8 0.09 - - - -
Lease liabilities 2 0.01 6 0.03 10 0.09 25 0.29 - - - -
Staff retirement benefits 57 0.24 50 0.25 44 0.40 43 0.51 31 0.37 33 0.46
Staff compensated absences 5 0.02 7 0.04 6 0.06 5 0.06 38 0.45 35 0.49
Deferred taxation 85 0.37 66 0.34 39 0.36 59 0.70 96 1.13 63 0.87
5,481 23.43 1,232 6.32 840 7.61 795 9.44 845 10.02 420 5.85

Current liabilities
Current portion of long-term financing 182 0.78 393 2.01 404 3.66 215 2.55 109 1.29 69 0.96
Current portion of lease liabilities 2 0.01 7 0.04 10 0.09 55 0.66 - - - -
Trade and other payables 3,182 13.60 2,667 13.68 1,431 12.97 1,081 12.84 813 9.64 762 10.63
Short-term borrowings - secured 4,001 17.10 4,897 25.12 2,134 19.34 1,234 14.67 1,498 17.77 1,779 24.81
Contract liabilities 700 2.99 1,142 5.86 807 7.32 195 2.32 223 2.64 334 4.66
Unclaimed dividend 33 0.14 30 0.16 26 0.23 26 0.30 26 0.31 24 0.33
Accrued mark-up 319 1.36 118 0.61 32 0.29 46 0.54 40 0.48 26 0.36
8,419 35.99 9,255 47.48 4,843 43.90 2,852 33.89 2,709 32.13 2,993 41.74
Total liabilities 13,901 59.42 10,487 53.80 5,683 51.52 3,647 43.33 3,554 42.15 3,413 47.59
Total equity and liabilities 23,395 100.00 19,493 100.00 11,032 100.00 8,417 100.00 8,432 100.00 7,171 100.00

Financial Position Analysis (Equity and Liabilities)

2018

2019

2020

2021

2022

2023

- 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Equity Non-Current Liabilities Current Liabilities

Annual Report 2023 | 118

 Analysis of Financial Statements
Horizontal Analysis - Statement of Profit or Loss
2023 2022 2021 2020 2019 2018
2023 vs 2022 2022 vs 2021 2021 vs 2020 2020 vs 2019 2019 vs 2018 2018 vs 2017
Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age

Revenue from contracts with customers 21,653 2.29 21,168 61.03 13,145 44.67 9,086 (6.37) 9,704 1.50 9,561 18.28
Cost of sales (18,469) 0.28 (18,417) 58.51 (11,619) 41.24 (8,226) (3.89) (8,559) 1.60 (8,424) 23.59
Gross profit 3,184 15.74 2,751 80.21 1,526 77.44 860 (24.91) 1,146 0.75 1,137 (10.29)

Marketing, selling and distribution costs (807) 5.78 (763) 46.77 (520) 19.46 (435) (14.66) (510) 16.33 (438) 7.94
Administrative expenses (359) 9.11 (329) 21.06 (272) 22.34 (222) (16.48) (266) 6.95 (249) 8.86
Impairment reversal / (loss) on trade debts 1 (87.98) 9 0.47 9 (151.37) (17) 100.00 0.1 100.00 - (100.00)
(1,165) 7.55 (1,083) 38.36 (783) 16.13 (674) (13.09) (776) 12.92 (687) 8.02

Finance cost (954) 204.10 (314) 63.02 (192) (32.06) (283) 50.20 (189) 41.15 (134) 103.62
Impairment (loss) / reversal on
investment in associate - (100.00) (72) (225.00) 57 100.00 - (100.00) (57) 100.00 - -
Other expenses (88) (16.88) (105) 91.17 (55) (100.00) (4) (69.52) (15) (50.48) (29) (39.74)
(1,042) 112.31 (491) 157.84 (190) (33.86) (288) 10.48 (260) 59.77 (163) 42.52
Other income 149 9.80 136 (23.53) 177 382.54 37 (32.64) 55 34.13 41 (58.35)
Share of profit from associate under the
equity basis of accounting 5 (74.35) 19 (3.63) 19 100.00 1 (95.45) 12 (22.68) 16 68.85
Profit / (loss) before tax 1,130 (15.07) 1,331 77.51 750 100.00 (64) (136.54) 176 (48.70) 344 (44.93)
Income tax expense (407) (19.17) (503) 156.55 (196) 617.17 (27) (45.44) (50) 30.46 (38) (73.65)
Profit / (loss) after tax 724 (12.57) 828 49.50 554 100.00 (92) (172.71) 126 (58.66) 305 (36.18)

Net Sales Gross Profit

25,000 3,500
3,000
20,000
21,653 2,500 3,184
21,168
Rs. in Million

Rs. in Million

2,751
15,000 2,000

10,000 1,500
1,000
5,000
500
- -
2023 2022 2023 2022

Profit After Tax Earnings Per Share

900 20.0
800
700 828
15.0
Rs. in Million

600 724
500 16.72
Rupees

14.62
400 10.0
300
200 5.0
100
- -
2023 2022 2023 2022
(Restated)

119 | Pakistan Cables Limited

Vertical Analysis - Statement of Profit or Loss
2023 2022 2021 2020 2019 2018
Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age

Revenue from contracts with customers 21,653 100.00 21,168 100.00 13,145 100.00 9,086 100.00 9,704 100.00 9,561 100.00
Cost of sales (18,469) (85.30) (18,417) (87.00) (11,619) (88.39) (8,226) (90.53) (8,559) (88.19) (8,424) (88.11)
Gross profit 3,184 14.70 2,751 13.00 1,526 11.61 860 9.47 1,146 11.81 1,137 11.89

Marketing, selling and distribution costs (807) (3.73) (763) (3.60) (520) (3.95) (435) (4.79) (510) (5.25) (438) (4.58)
Administrative expenses (359) (1.66) (329) (1.56) (272) (2.07) (222) (2.45) (266) (2.74) (249) (2.60)
Impairment reversal / (loss) on trade debts 1 0.00 9 0.04 9 0.07 (17) (0.19) 0.1 0.00 - -
(1,165) (5.38) (1,083) (5.12) (783) (5.96) (674) (7.42) (776) (8.00) (687) (7.19)

Finance cost (954) (4.41) (314) (1.48) (192) (1.46) (283) (3.12) (189) (1.94) (134) (1.40)
Impairment (loss) / reversal on
investment in associate - - (72) (0.34) 57 0.44 - - (57) (0.59) - -
Other expenses (88) (0.40) (105) (0.50) (55) (0.42) (4) (0.05) (15) (0.15) (29) (0.31)
(1,042) (4.81) (491) (2.32) (190) (1.45) (288) (3.17) (260) (2.68) (163) (1.70)
Other income 149 0.69 136 0.64 177 1.35 37 0.40 55 0.56 41 0.43
Share of profit from associate under the
equity basis of accounting 5 0.02 19 0.09 19 0.15 1 0.01 12 0.13 16 0.17
Profit / (loss) before tax 1,130 5.22 1,331 6.29 750 5.70 (64) (0.71) 176 1.82 344 3.60
Income tax expense (407) (1.88) (503) (2.38) (196) (1.49) (27) (0.30) (50) (0.52) (38) (0.40)
Profit / (loss) after tax 724 3.34 828 3.91 554 4.21 (92) (1.01) 126 1.30 305 3.19

Analysis of Expenses

2018 88.1% 4.6% 2.6% 1.4%

2019 88.2% 5.3% 2.7% 1.9%

2020 90.5% 4.8% 2.4% 3.1%

2021 88.4% 4.0% 2.1% 1.5%

2022 87.0% 3.6% 1.6% 1.5%

2023 85.3% 3.7% 1.7% 4.4%

75% 80% 85% 90% 95% 100%

Cost of sales Marketing, selling & distribution costs Administrative expense Finance cost

Annual Report 2023 | 120

 Analysis of Financial Statements
Horizontal Analysis - Statement of Cash Flows
2023 2022 2021 2020 2019 2018
2023 vs 2022 2022 vs 2021 2021 vs 2020 2020 vs 2019 2019 vs 2018 2018 vs 2017
Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age

Net cash generated from / (used in)

operating activities 1,000 505.85 165 (191.72) (180) (116.28) 1,105 (484.64) (287) (47.20) (544) (594.64)

Net cash used in investing activities (3,976) 44.01 (2,761) 206.92 (900) 1.16 (889) 8.02 (823) 259.21 (229) (12.96)

Net cash generated from financing activities 2,962 52.44 1,943 140.79 807 56.52 516 91.11 270 (75.47) 1,100 1,994.14

Net (decrease) / increase in cash &

cash equivalents (14) (97.82) (653) 139.55 (273) (137.28) 731 (186.97) (841) (357.72) 326 (423.66)

Vertical Analysis - Statement of Cash Flows

2023 2022 2021 2020 2019 2018
Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age Rs. in M %age

Net cash generated from / (used in)

operating activities 1,000 (7,009.11) 165 (25.27) (180) 66.01 1,105 151.11 (287) 34.17 (544) (166.77)

Net cash used in investing activities (3,976) 27,870.16 (2,761) 422.78 (900) 329.97 (889) (121.61) (823) 97.91 (229) (70.25)

Net cash generated from financing activities 2,962 (20,761.05) 1,943 (297.51) 807 (295.97) 516 70.50 270 (32.08) 1,100 337.02

Net (decrease) / increase in cash &

cash equivalents (14) 100.00 (653) 100.00 (273) 100.00 731 100.00 (841) 100.00 326 100.00

121 | Pakistan Cables Limited

Quarterly Performance Analysis
For the year ended June 30, 2023

Sales Gross Profit

100 100
100% 100%
90 90

80 80

70 70
74%
71%
60 60

50 50
50%
40 40 46%
30 30

20 24% 20
21%
10 10

- -

Q1 Rs. 5,203.995 million 24% Q1 Rs. 677.101 million 21%

Q2 Rs. 5,608.211 million 26% Q2 Rs. 782.400 million 25%
Q3 Rs. 5,242.852 million 24% Q3 Rs. 808.423 million 25%
Q4 Rs. 5,597.895 million 26% Q4 Rs. 915.738 million 29%

Total: Rs. 21,652.953 million Total: Rs. 3,183.662 million

Profit Before Tax Profit After Tax

100 100

90 100% 90 100%

80 80

70 70
69% 72%
60 60

50 50

40 40
41% 42%
30 30

20 20
21% 22%
10 10

- -

Q1 Rs. 242.275 million 21% Q1 Rs. 158.266 million 22%

Q2 Rs. 222.435 million 20% Q2 Rs. 143.607 million 20%
Q3 Rs. 316.653 million 28% Q3 Rs. 218.925 million 30%
Q4 Rs. 349.054 million 31% Q4 Rs. 202.853 million 28%

Total: Rs. 1,130.417 million Total: Rs. 723.651 million

Annual Report 2023 | 122

 Dupont Analysis
2023 2022

Tax burden % 64.02 62.19

Interest burden % 54.23 80.92

EBIT margin % 9.63 7.77

Asset turnover Times 0.93 1.09

Leverage % 246.41 216.44

Return on Equity % 7.62 9.19

Net profit
Rs. 724 M ÷ Net revenue
Rs. 21,653 M ÷ Total assets
Rs. 23,395 M - Total liabilities
Rs. 13,901 M + Total equity
Rs. 9,494 M

Net profit margin

3.34 % x Asset turnover
0.93 times
Total equity
Rs. 9,494 M ÷ Total assets
Rs. 23,395 M

Return on assets
3.09 % ÷ Ownership ratio
40.58%

Return on Equity
7.62%

123 | Pakistan Cables Limited

Direct Method Statement of Cash Flows
2023 2022
(Rupees in Million)
CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers - net 20,997 20,245

Payments to suppliers / service providers / employees etc. - net (19,071) (19,564)
Payments to staff retirement benefits (3) (1)
Finance costs paid (640) (187)
Income tax paid - net (275) (330)
Long-term loans receivable (7) 2
Long-term deposits (0.4) 0.2
Net cash generated from operating activities 1,000 165

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure including intangible assets (3,999) (2,805)

Proceeds from disposal of fixed assets 16 38
Dividend received from associate 7 5
Net cash used in investing activities (3,976) (2,761)

CASH FLOWS FROM FINANCING ACTIVITIES

Long-term loans obtained 4,512 767

Repayment of long term-loans (497) (407)
Lease rentals paid - net (8) (11)
(Repayments) / loan of short-term borrowings - secured (817) 1,963
Dividend paid (228) (369)
Net cash generated from financing activities 2,962 1,943

Net decrease in cash and cash equivalents (14) (653)

Cash and cash equivalents at beginning of the year (955) (302)
Cash and cash equivalents at end of the year (969) (955)

Cash Flow Analysis

4,000
3,000
2,000 2,962
1,943
Rs. in Million

1,000
165
1,000
-
(1,000) (287)
(2,761)
(2,000)
(3,976)
(3,000)
(4,000)
2023 2022

Operating activities Investing activities Financing activities

Annual Report 2023 | 124

 Statement of Value Addition
For the year ended June 30, 2023
% (Rupees in ‘000)
Value created

Gross Sales 99.39% 25,265,759

Other income 0.59% 148,925
Other comprehensive loss (0.10%) (24,656)
Share of profit from associate 0.02% 4,777
Transfer from surplus on revaluation of building 0.10% 24,764
100.00% 25,419,569
Bought in materials and services (71.31%) (18,126,179)
Total 28.69% 7,293,390

Value Distribution

To Government as taxes
Income tax, sales tax & custom duty 57.89% 4,222,092
Workers funds, EOBI & social security contribution and local taxes 0.59% 42,887

To Employees as remuneration
Salaries, wages and benefits 18.19% 1,326,459

To Society
Donations and CSR 0.33% 24,030

To Providers of capital
Financial charges to providers of finance 13.08% 954,185
Dividends for shareholders 1.18% 85,921

Retained within the business 8.75% 637,816

Total Value Distributed 100.00% 7,293,390

Society
0.33%
Providers of
Employees
capital
18.19%
14.26%

Retained within
the business
8.75%

Government
58.48%

Government Retained within the business Employees Society Providers of capital

125 | Pakistan Cables Limited

Annual Report 2023 | 126
ROOT FOR
PROGRESS
FINANCIAL STATEMENT
 INDEPENDENT AUDITOR’S REPORT

To the members of Pakistan Cables Limited

Report on the Audit of the Financial Statements

Opinion
We have audited the annexed financial statements of Pakistan Cables Limited (the Company), which comprise the statement of
financial position as at June 30, 2023, and the statement of profit or loss, the statement of profit or loss and other comprehensive
income, the statement of cash flows, the statement of changes in equity for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory information, and we state that we have
obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes
of the audit.

In our opinion and to the best of our information and according to the explanations given to us, the statement of financial position,
the statement of profit or loss, the statement of profit or loss and other comprehensive income, the statement of cash flows and
the statement of changes in equity together with the notes forming part thereof conform with the accounting and reporting
standards as applicable in Pakistan and give the information required by the Companies Act, 2017 (XIX of 2017), in the manner
so required and respectively give a true and fair view of the state of the Company's affairs as at June 30, 2023 and of the profit
and other comprehensive loss, the changes in equity and its cash flows for the year then ended.

Basis for Opinion

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 Financial
Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards
Board for Accountants’ Code of Ethics for Professional Accountants as adopted by the Institute of Chartered Accountants
of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Following is the Key audit matter:

S.No. Key audit matters How the matter was addressed in our audit

(i) Revenue from contracts with customers

(Refer note 3.9 and note 29 to the financial statements) Our audit procedures amongst others included the
following:

The Company recognizes revenue from the sale of - assessed the appropriateness of the Company’s
wires and cables to domestic as well as export accounting policies for revenue recognition and
customers when the performance obligation is compliance of those policies with accounting and
satisfied by transferring control of a promised good reporting standards as applicable in Pakistan;
to the customer.

We considered revenue recognition as a key audit - performed verification of sales, on sample basis, with
matter due to revenue being one of the key underlying documentation including sales orders,
performance indicators of the Company. In addition, sales invoices and delivery challans;
revenue was also considered as an area of
significant audit risk as part of the audit process.

129 | Pakistan Cables Limited

S.No. Key audit matters How the matter was addressed in our audit

- performed cut-off procedures on sample basis to ensure

sales has been recorded in the correct period;

- inspected, on a sample basis, credit notes issued to

record sales returns during the year and subsequent to
year end, if any, to evaluate whether the adjustments to
sales had been accurately recorded in the appropriate
accounting period;

- verified that sales prices are negotiated and approved

by appropriate authority; and

- ensured that presentation and disclosures related to

revenue are being addressed appropriately.

Information Other than the Financial Statements and Auditor’s Report Thereon
Management is responsible for the other information. The other information comprises the information included in the annual
report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based 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.

Responsibilities of Management and Board of Directors for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the
accounting and reporting standards as applicable in Pakistan and the requirements of Companies Act, 2017 (XIX of 2017) and
for such internal control as management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Board of directors are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 financial statements.

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:

Annual Report 2023 | 130

 • Identify and assess the risks of material misstatement of the 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 appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast 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 financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions 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.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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 audit.

We also provide the board of directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, related safeguards.

From the matters communicated with the board of directors, we determine those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit 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 report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

Based on our audit, we further report that in our opinion:

(a) proper books of account have been kept by the Company as required by the Companies Act, 2017 (XIX of 2017);

(b) the statement of financial position, the statement of profit or loss, the statement of profit or loss and other comprehensive
income, the statement of changes in equity and the statement of cash flows together with the notes thereon have been drawn
up in conformity with the Companies Act, 2017 (XIX of 2017) and are in agreement with the books of account and returns;

(c) investments made, expenditure incurred and guarantees extended during the year were for the purpose of the Company’s
business; and

(d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the company
and deposited in the Central Zakat Fund established under section 7 of that Ordinance.

131 | Pakistan Cables Limited

Other Matter
The financial statements of the Company for the year ended June 30, 2022, were audited by another auditor who expressed
an unmodified opinion on those statements on August 31, 2022.

The engagement partner on the audit resulting in this independent auditor’s report is
Syed Muhammad Hasnain.

A. F. Ferguson & Co
Chartered Accountants

Karachi

Date: September 04, 2023

UDIN: AR202310073rj0J24XYx

Annual Report 2023 | 132

 KEY FINANCIAL HIGHLIGHTS 2023

NET SALES IN 2023

[RUPEES IN MILLION]

21,653

13,145

21,168

21,653
9,561

9,704

9,086
2018 2019 2020 2021 2022 2023

EQUITY EXPENSES IN 2023

[RUPEES IN MILLION] [RUPEES IN MILLION]

Share capital and reserves

Surplus on revalution of assests
9,494 4.94% 1.93%
9,006
5.53%

5,349
4,878
4,770 21,083
3,758

87.6%

Cost of sales Selling and Admin expenses

2018 2019 2020 2021 2022 2023 Finance and other costs Taxation

EARNINGS / (LOSS) PER SHARE KEY INDICATORS

25.00
(Restated) EARNINGS RETURN
20.00 16.72 PER SHARE ON EQUITY
15.56
14.62 Rs. 14.62 7.62%
15.00
Rupees

9.94
10.00 MARKET BREAK-UP
VALUE PER SHARE VALUE PER SHARE
5.00 3.56
Rs. 82.92 Rs. 191.77
-

(2.58)
MARKET DIVIDEND
(5.00)
CAPITALIZATION PER SHARE
2018 2019 2020 2021 2022 2023
Rs. 4,105 M Rs. 2.00

133 | Pakistan Cables Limited

STATEMENT OF FINANCIAL POSITION
AS AT JUNE 30, 2023

Note 2023 2022

(Rupees in ‘000)
ASSETS
Non-current assets
Property, plant and equipment 4 14,444,537 10,628,822
Right-of-use assets 5 8,241 29,511
Intangible assets 6 11,944 17,746
Investment in associated company 7 78,399 65,723
Long-term loans receivable 8 13,621 6,269
Long-term deposits 6,444 6,020
14,563,186 10,754,091
Current assets
Stores and spares 9 80,013 63,227
Stock-in-trade 10 3,761,223 3,863,451
Trade debts 11 4,146,579 4,104,314
Short-term loans and advances 12 181,443 91,264
Short-term deposits and prepayments 13 59,580 27,204
Other receivables 14 359,884 145,464
Taxation - payments less provisions 81,376 188,428
Cash and bank balances 15 161,341 255,814
8,831,439 8,739,166

Total assets 23,394,625 19,493,257

EQUITY AND LIABILITIES

Share capital and reserves
Authorised share capital
50,000,000 (June 30, 2022: 50,000,000) ordinary shares of Rs. 10 each 500,000 500,000
Issued, subscribed and paid-up capital 16 495,067 355,779
Capital reserves
Share premium reserve 17 1,595,139 1,595,139
Revaluation surplus on property (land and building) - net of tax 18 4,785,350 4,790,050
Revenue reserves
General reserve 19 1,975,000 1,575,000
Un-appropriated profit 643,510 690,318
Total Shareholders' equity 9,494,066 9,006,286

Non-current liabilities
Long-term financing - secured 20 4,767,733 854,129
Deferred income - Government grant 23 564,616 248,987
Lease liabilities 5 2,037 5,595
Staff retirement benefits 21 56,936 49,706
Staff compensated absences 22 4,696 7,210
Deferred taxation 24 85,397 66,043
5,481,415 1,231,670
Current liabilities
Current portion of long-term financing 20 181,647 392,586
Current portion of lease liabilities 5 1,768 7,402
Trade and other payables 25 3,182,426 2,667,389
Short-term borrowings - secured 26 4,000,563 4,897,411
Contract liabilities 27 700,472 1,141,723
Unclaimed dividend 33,379 30,318
Accrued mark-up 318,889 118,472
8,419,144 9,255,301
Total liabilities 13,900,559 10,486,971

Contingencies and commitments 28

Total equity and liabilities 23,394,625 19,493,257

The annexed notes from 1 to 48 form an integral part of these financial statements.

Chief Executive Officer Director Chief Financial Officer

Annual Report 2023 | 134

 STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED JUNE 30, 2023

Note 2023 2022

(Rupees in ‘000)

Revenue from contracts with customers 29 21,652,953 21,167,659

Cost of sales 30 (18,469,291) (18,416,849)
Gross profit 3,183,662 2,750,810

Marketing, selling and distribution costs 31 (807,002) (762,922)

Administrative expenses 32 (359,289) (329,283)
Impairment reversal on trade debts 11.2 1,049 8,724
(1,165,242) (1,083,481)

Finance cost 33 (954,185) (313,772)

Impairment loss on investment in associate - (71,580)
Other expenses 34 (87,520) (105,299)
(1,041,705) (490,651)

Other income 35 148,925 135,634

Share of profit from associate under the equity basis of accounting 7.2 4,777 18,626
Profit before tax 1,130,417 1,330,938

Income tax expense 36 (406,766) (503,212)

Profit after tax for the year 723,651 827,726

(Rupees)
(Restated)
Earnings per share - basic and diluted 37 14.62 16.72

The annexed notes from 1 to 48 form an integral part of these financial statements.

Chief Executive Officer Director Chief Financial Officer

135 | Pakistan Cables Limited

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED JUNE 30, 2023

Note 2023 2022

(Rupees in ‘000)

Profit after tax for the year 723,651 827,726

Other comprehensive income:

Items that will not be reclassified to statement of profit or loss

Remeasurement of post employment benefit obligations 21.1.7 (19,161) (6,002)

Related tax effect 5,557 1,741
(13,604) (4,261)

Derivative financial assets on hedge instruments - net (5,524) 5,524

Related deferred tax 1,602 (1,602)
(3,922) 3,922

Share of other comprehensive income / (loss) from the associated company 29 (130)

Surplus on revaluation of land and building carried out during the year - 3,231,195
Related deferred tax - (30,029)
- 3,201,166

Share of surplus on revaluation of land and building of the associated company 18 15,157 3,216
Related deferred tax (2,274) (482)
12,883 2,734
(4,614) 3,203,431

Total comprehensive income - transferred to statement of changes in equity 719,037 4,031,157

The annexed notes from 1 to 48 form an integral part of these financial statements.

Chief Executive Officer Director Chief Financial Officer

Annual Report 2023 | 136

 STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023

Note 2023 2022

(Rupees in ‘000)
CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations 38 1,926,286 681,073

Payments to staff retirement benefits 21.1.8 (3,206) (937)
Finance costs paid (639,910) (187,235)
Income tax paid - net (275,474) (329,548)
Long-term loans receivable (7,352) 1,511
Long-term deposits (424) 180
Net cash generated from operating activities 999,920 165,044

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure including intangible assets (3,998,887) (2,804,639)

Proceeds from disposal of fixed assets 4.1.3 15,644 38,314
Dividend received from associate 7.2 7,286 5,386
Net cash used in investing activities (3,975,957) (2,760,939)

CASH FLOWS FROM FINANCING ACTIVITIES

Long-term loans obtained 4,511,622 766,754

Repayment of long-term loans (496,624) (406,502)
Lease rentals paid - net (8,390) (11,228)
(Repayments) / loan of short-term borrowings - secured (816,641) 1,962,641
Dividend paid (228,196) (368,817)
Net cash generated from financing activities 2,961,771 1,942,848
Net decrease in cash and cash equivalents (14,266) (653,047)

Cash and cash equivalents at beginning of the year (954,956) (301,909)

Cash and cash equivalents at end of the year 39 (969,222) (954,956)

The annexed notes from 1 to 48 form an integral part of these financial statements.

Chief Executive Officer Director Chief Financial Officer

137 | Pakistan Cables Limited

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED JUNE 30, 2023

Share capital Capital reserves Revenue reserves Total

Note Issued, Share Surplus on General Un-
subscribed premium Revaluation reserve appropriated
and paid-up reserve of assets - profit
capital net of tax
(Rupees in ‘000)

Balance as at July 01, 2021 355,779 1,595,139 1,599,394 1,268,000 530,386 5,348,698

Total comprehensive income for the year

ended June 30, 2022

- Profit after tax - - - - 827,726 827,726

- Other comprehensive income - net of tax - - 3,203,900 - (469) 3,203,431
- - 3,203,900 - 827,257 4,031,157

Transfer from surplus on revaluation of

building - net of deferred tax 18 - - (13,244) - 13,244 -

Transfer to general reserve for the year

ended June 30, 2021 - - - 307,000 (307,000) -

Transactions with owners of the

Company - Distribution

Final cash dividend for the year ended

June 30, 2021 @ Rs. 8.00 per share - - - - (284,624) (284,624)

Interim cash dividend for the half year ended

December 31, 2021 @ Rs. 2.50 per share - - - - (88,945) (88,945)

Balance as at June 30, 2022 355,779 1,595,139 4,790,050 1,575,000 690,318 9,006,286

Total comprehensive income for the

year ended June 30, 2023

- Profit after tax - - - - 723,651 723,651

- Other comprehensive income - net of tax - - 12,883 - (17,497) (4,614)
- - 12,883 - 706,154 719,037

Transfer from surplus on revaluation of

building - net of deferred tax 18 - - (17,583) - 17,583 -

Transfer to general reserve for the year

ended June 30, 2022 - - - 400,000 (400,000) -

Transactions with owners of the

Company - Distribution

Final cash dividend for the year ended

June 30, 2022 @ Rs. 6.50 per share - - - - (231,257) (231,257)

15% bonus shares issued - for the year

ended June 30, 2022 53,367 - - - (53,367) -

10% first interim bonus shares issued - for

the nine months ended March 31, 2023 40,915 - - - (40,915) -

10% second interim bonus shares issued - for

the nine months ended March 31, 2023 45,006 - - - (45,006) -
139,288 - - - (370,545) (231,257)

Balance as at June 30, 2023 495,067 1,595,139 4,785,350 1,975,000 643,510 9,494,066

The annexed notes from 1 to 48 form an integral part of these financial statements.

Chief Executive Officer Director Chief Financial Officer

Annual Report 2023 | 138

 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2023

1 LEGAL STATUS AND OPERATIONS

Pakistan Cables Limited ("the Company") was incorporated in Pakistan as a private limited Company on 22 April 1953
under Companies Act, 1913 (now the Companies Act, 2017) and in 1955 it was converted into a public limited Company
in which year it also obtained a listing on the Pakistan Stock Exchange. The Company is engaged in the business of
copper rods, wires, cables and conductors, aluminium extrusion profiles, wiring accessories and PVC compounds.

The registered office of the Company is situated at 11.15 acres of land at B/21, S.I.T.E., Karachi, Pakistan and head office
of the Company is situated at 1st Floor, Arif Habib Centre, 23 M.T. Khan Road, Karachi, Pakistan. In addition, it also has
a land of 42 acres at K-23, Nooriabad, Sindh and 3.9 acres at C-246 and C-247 Nooriabad, Sindh. The Company has also
regional and branch offices located in Lahore, Faisalabad, Rawalpindi, Multan, Peshawar and Abbottabad.

2 BASIS OF PREPARATION

2.1 Statement of compliance

These 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 comprises of:

- International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board
(IASB) as notified under the Companies Act, 2017; and

- Provisions of and directives issued under the Companies Act, 2017.

Where the provisions of and directives issued under the Companies Act, 2017 differ from the requirements of IFRS,
the provisions of and directives issued under the Companies Act, 2017 have been followed.

2.2 Basis of measurement

These financial statements have been prepared under the historical cost convention except as disclosed otherwise.

2.3 Functional and presentation currency

These financial statements are presented in Pakistani rupee which is the Company's functional currency. All financial
information presented in Pakistani rupee has been rounded off to the nearest thousand, unless otherwise stated.

2.4 Use of estimates and judgements

In preparing these financial statements, management has made judgments, estimates and assumptions that affect
the application of the Company's accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on
an ongoing basis. Revision to estimates are recognised prospectively. Information about judgments made in applying
accounting policies that have the most significant effects on the amount recognised in the financial statements and
to the carrying amount of the assets and liabilities and assumptions and estimation uncertainties that may have a
significant risk resulting in a material adjustment in the subsequent year are set forth below:

- Staff retirement benefits and other benefits (refer note 3.2)

- Financial assets (refer note 3.17)
- Property, plant and equipment and intangible assets (refer notes 3.15 and 3.16)
- Stock-in-trade and stores and spares (refer notes 3.6 and 3.5)
- Investment in associate - equity method (refer note 3.1)
- Taxation (refer note 3.3)
- Provisions (refer note 3.10)
- Impairment (refer notes 3.18 and 3.21)
- Leases (refer note 3.25)
- Contingent liabilities (refer note 3.22)

139 | Pakistan Cables Limited

2.5 Change in accounting standards, interpretations and amendments to published approved accounting standards

a) Standards, interpretations and amendments to published approved accounting standards that are effective.

There are certain amendments and interpretations to the accounting and reporting standards which are
mandatory for the Company's annual accounting period which began on July 1, 2022. However, these do not
have any significant impact on the Company’s financial reporting.

b) Standard and amendments to approved accounting standards that are not yet effective.

There are certain amendments and interpretations to the accounting and reporting standards that will be
mandatory for the Company's annual accounting periods beginning on or after July 1, 2023. However, these
will not have any impact on the Company's financial reporting and, therefore, have not been disclosed in these
financial statements.

3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to all the periods presented in these financial
statements.

3.1 Investment in associate - equity method

Investments in associate where the Company has significant influence but not control over the financial and
operating policies are accounted for using equity basis of accounting, under which the investment in associate is
initially recognised at cost and the carrying amounts are increased or decreased to recognise the Company’s share
of the profit or loss of the associate after the date of acquisition, less impairment losses, if any. The Company’s
share of the profit or loss of the associate is recognised in the Company’s statement of profit or loss.

Distributions received from associate reduce the carrying amount of the investment. Adjustments to the carrying
amounts are also made for changes in the Company’s proportionate interest in the associate arising from changes
in the associate's other comprehensive income and surplus on revaluation of fixed assets. The Company’s share
of those changes are respectively recognised directly in other comprehensive income and surplus on revaluation
of fixed asset account of the Company.

Gain/(loss) on sale of above investments, if any, are recognised in the period of sale. The carrying amount of the
investment is tested for impairment, by comparing its recoverable amount (higher of value in use and fair value
less costs to sell) with its carrying amount and difference, if any is recognised in the statement of profit or loss.

The recoverable amount of an investment in an associate company is assessed periodically. Any reversal of
previously booked impairment is recognised in profit or loss to the extent that the recoverable amount of the net
investment is subsequently increased.

3.2 Staff retirement benefits and other benefits

Defined benefit plans
The Company operates a defined benefit funded pension scheme for permanent employees who are in the
management cadre. However, the benefit is available to those employees only who had joined before 01 April 2009.

In addition, the Company operates an unfunded gratuity scheme, for all permanent unionized staff.

Annual Report 2023 | 140

 The Company's obligation under the pension and gratuity schemes are determined through actuarial valuations
carried out under the "Projected Unit Credit Method". Actuarial valuations are conducted annually and the latest
valuation was conducted at the reporting date (June 30, 2023). When the calculation results in a potential asset
for the Company, the recognised asset is limited to the present value of economic benefits available in the form of
any future refunds from the plan or reduction in future contributions to the plan. Service costs are recognised in
statement of profit or loss in the period in which they occur. Net interest on net defined benefit liability is also
recognised in statement of profit or loss. Net of tax remeasurement comprising actuarial gain/(loss), the return
on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest) are recognised in statement
of comprehensive income.

Risks on account of defined benefit plans

The Company faces the following risks on account of defined benefit plans:

Final salary risk - The risk that the final salary at the time of cessation of service is greater than what the Company
has assumed. Since the benefit is calculated on the final salary, the benefit amount would also increase
proportionately.

Asset volatility - Most assets are invested in risk free investments of 3, 5 or 10 year Government and Corporate
Bonds. However, investments in equity instruments and mutual funds is subject to adverse fluctuations as a result
of change in the market price.

Discount rate fluctuation - The plan liabilities are calculated using a discount rate set with reference to corporate
bond yields. A decrease in corporate bond yields will increase plan liabilities, although this will be partially offset
by an increase in the value of the current plans’ bond holdings.

Investment risks - The risk of the investment underperforming and not being sufficient to meet the liabilities. This
risk is mitigated by closely monitoring the performance of investment.

Risk of insufficiency of assets - This is managed by making regular contribution to the Fund as advised by the actuary.

Defined contribution plan

The Company also operates a recognised provident fund scheme for its employees. Equal monthly contributions are
made both by the Company and the employees to the fund at the rate of 10% of basic pay and dearness allowance.

Other long-term employee benefit

The Company accounts for long-term staff compensated absences on the basis of actuarial valuation carried out
under the Projected Unit Credit Method.

3.3 Taxation
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the statement of
profit or loss, except to the extent that it relates to items recognised directly in the other comprehensive income
or in equity, in which case it is recognised in the other comprehensive income or equity respectively.

Current
Provision for current taxation is based on taxability of certain income streams under final tax regime at the applicable
tax rates and remaining income streams chargeable at current rate of taxation under the normal tax regime after
taking into account tax credits and tax rebates available, if any. Provision of current tax is determined using the
tax rate enacted at the reporting date.

141 | Pakistan Cables Limited

 Deferred
Deferred tax is recognised using the balance sheet liability method, providing for temporary difference between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
The amount of deferred tax recognised is based on the expected manner of realisation or settlement of the carrying
amount of assets and liabilities using the tax rates enacted or substantively enacted at the reporting date.

The Company recognises a deferred tax asset to the extent that it is probable that taxable profits in the foreseeable
future will be available against which the assets can be utilized. Deferred tax assets are reduced to the extent that
it is no longer probable that the related tax benefit will be realised.

Further, the Company also recognises deferred tax liability on surplus on revaluation of property, plant and
equipment which is adjusted against the related surplus.

3.4 Mark-up bearing borrowings and borrowing cost

Mark-up bearing borrowings are recognised initially at fair value, less attributable transaction cost. Subsequent
to initial recognition, mark-up bearing borrowings are stated at amortized cost, while the difference between the
cost (reduced for periodic payments) and redemption value is recognised in the statement of profit or loss over
the period of the borrowings using the effective interest method. Borrowing costs are recognised as an expense
in the period in which these are incurred, except that those which are directly attributable to the acquisition,
construction or production of a qualifying asset (i.e. an asset that necessarily takes a substantial period of time to
get ready for its intended use or sale) are capitalised as part of the cost of that asset.

3.5 Stores and spares

Stores and spares are stated at lower of weighted average cost and net realizable value. Items in transit are valued
at cost comprising invoice value plus other charges incurred thereon.

Provision for obsolete and slow moving stores and spares is determined based on the management's estimate
regarding their future usability.

Net realizable value signifies the estimated selling price in the ordinary course of business less the net estimated
costs necessary to be incurred to make the sale.

3.6 Stock-in-trade
These are valued at lower of cost and net realizable value. Cost is determined under the weighted average basis.
Cost of work-in-process and finished goods consists of direct materials, labour and applicable production overheads.
Net realizable value signifies the estimated selling price in the ordinary course of the business less estimated cost
of completion and selling expenses. The management continuously reviews its inventory for existence of any item
which may be obsolete. Provision is made for slow moving inventory based on management's estimation. These
are based on historical experience and are continuously reviewed.

Items in-transit are valued at lower of cost and net realizable value. Cost comprises invoice value plus other
charges paid thereon up to the reporting date.

Scrap is valued at estimated realizable value.

3.7 Cash and cash equivalents

Cash and cash equivalents comprise cash, bank balances on current and deposit accounts and running finance
under mark-up arrangements. Short term running finances that are repayable on demand form an integral part
of the Company's cash management and are included as a component of cash and cash equivalents for the purpose
of the statement of cash flows.

Annual Report 2023 | 142

 3.8 Foreign currency translation
Transactions in foreign currencies are recorded in Pakistani rupees at the rates of exchange prevailing on the date
of transaction. Monetary assets and liabilities in foreign currencies are reported in Pakistani rupees at the rates
of exchange prevailing at the reporting date. Exchange gains and losses on translation are included in statement
of profit or loss currently.

3.9 Revenue recognition

- Revenue from sale of goods is measured at fair value of the consideration received or receivable. The Company
records revenue from sale of goods at the point in time when control of the product has transferred, being
when the products are delivered to the customer and the performance obligation is satisfied at the same time.
Invoices are generated and revenue is recognised on delivery of products. Delivery occurs when the products
have been shipped to or / and delivered to the customer’s destination / specific location, the risks of loss have
been transferred to the customer and the customer has accepted the product either as per the sales contract
or lapse of acceptance provision or the Company has objective evidence that all criteria for acceptance have
been satisfied. Further, a contract liability is also recognised for short term advances that the Company
receives from its customers.

- Income on bank deposit and loan to employees is recognised on the time proportionate basis using effective
interest method.

- Miscellaneous income is recognised on accrual basis.

No element of financing is deemed present as the sales are made with a credit term of up to 120 days.

3.10 Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past
events, 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. Provisions are measured at the present value of
expected expenditure, discounted at a pre-tax rate that reflects current market assessment of the time value of
money and the risk specific to the obligation. Provisions are reviewed at each reporting date and adjusted to reflect
current best estimate.

3.11 Offsetting of financial assets and liabilities

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

3.12 Dividends and reserve appropriation

Dividends and reserve appropriations are recognised in the period in which these are declared / approved. Transfers
between reserves made subsequent to reporting dates are considered as non-adjusting event and are recognised
in the financial statement in the period in which these are approved.

3.13 Earnings per share

The Company presents basic and diluted earnings per share (EPS) for the shareholders. Basic EPS is calculated
by dividing the profit after tax attributable to ordinary shareholders of the Company by the weighted average number
of ordinary shares outstanding during the year.

143 | Pakistan Cables Limited

 Diluted EPS is calculated by adjusting basic EPS by the weighted average number of ordinary shares that would
be issued on conversion of all dilutive potential ordinary shares into ordinary shares and post-tax effect of changes
in profit or loss attributable to ordinary shareholders of the Company that would result from conversion of all
dilutive potential ordinary shares into ordinary shares.

3.14 Contract liabilities

A contract liability is recognised if a payment is received from a customer before the Company transfers the related
goods. Contract liabilities are recognised as revenue when the Company performs under the contract (i.e., transfers
control of the related goods to the customer).

3.15 Property, plant and equipment

- The cost of an item of property, plant and equipment is recognised as an asset if it is probable that future economic
benefits associated with the item will flow to the entity and the cost of such item can be measured reliably. Recognition
of the cost in the carrying amount of an item of plant and equipment seizes when the item is in the location and
condition necessary for it to be capable of operating in the manner intended by the management.

- Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any,
except that building is stated at revalued amount less accumulated depreciation and impairment losses, if any,
while land is stated at revalued amount (less impairment losses, if any). Leasehold land is not depreciated
since the lease is renewable at nominal price at the option of the lessee.

- Capital work-in-progress is stated at cost accumulated to the balance sheet date less impairment losses, if
any. Cost include expenditures directly attributable to the acquisition of an asset. Transfers are made to relevant
asset category as and when asset are available for intended use.

- The cost of property, plant and equipment include:

(a) its purchase price including import duties, non refundable purchase taxes after deducting trade discounts
and rebates;

(b) any other costs directly attributable to bringing the asset to the location and condition necessary for it to
be capable of operating in the manner intended by management; and

(c) borrowing cost, if any.

- Depreciation of all items except for land is charged on straight line method at the rates specified in respective
note to the financial statements and is generally recognised in statement of profit or loss. Depreciation on
additions is charged from the month in which asset is available for use up to the month of disposal. Depreciation
methods, useful lives and residual value 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 date.

- The assets' residual values and useful lives are reviewed at the reporting date and if expectations differ from
previous estimates, the change is accounted for as a change in an accounting estimate.

- Leasehold land and building are revalued by independent professionally qualified valuer with sufficient regularity
to ensure that the net carrying amount does not differ materially from the fair values. In case of building, any
accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the
asset and the net amount restated at the revalued amount of the asset. Surplus on revaluation of assets are
credited to a 'Surplus on revaluation' account on the statement of financial position in equity. Surplus on
revaluation of building to the extent of incremental depreciation charged thereon is transferred from surplus
on revaluation of building to retained earnings (unappropriated profit), net of deferred tax.

Annual Report 2023 | 144

 - Expenditure incurred subsequent to the initial acquisition of asset is capitalised only when it is probable that
the future economic benefits associated with the expenditure will flow to the Company and it meets the
recognition criteria mentioned in accounting and reporting standards. All other expenditure is recognised in
the statement of profit or loss as expense.

- Gains or losses on disposal are included in statement of profit or loss currently and the related residual
revaluation surplus on property, plant and equipment, if any after taking into account incremental depreciation,
is transferred directly to retained earnings (unappropriated profit).

3.16 Intangible assets

Intangible assets are initially recognised at cost less accumulated amortization and impairment losses, if any.
Costs that are directly associated with identifiable software product controlled by the Company and have probable
economic benefits beyond one year are recognised as intangible asset. Costs associated with maintaining computer
software are recognised as an expense as and when incurred.

Amortisation is charged to statement of profit or loss by applying the straight line basis whereby the carrying
amount of an asset is amortised over its estimated useful life to the Company unless such life is indefinite.
Amortisation is charged from the month the asset is available for use, while in case of disposal it is charged up to
the month of disposal.

The Company accounts for impairment, where indications exist, by reducing asset’s carrying amount to the
recoverable amount.

3.17 Financial assets

Trade receivables are initially recognised when they are originated. All other financial assets are initially recognised
when the Company becomes a party to the contractual provisions of the instrument.

A financial asset (unless it is a trade receivable without a significant financing component) is initially measured at
fair value plus, for an item not at fair value through profit or loss, transaction costs that are directly attributable
to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the
transaction price.

On initial recognition financial asset is classified as measured at: amortised cost; fair value through other
comprehensive income (FVOCI); or fair value through profit or loss (FVTPL).

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business
model for managing financial assets, in which case all affected financial assets are reclassified on the first day of
the first reporting following the change in the business model. A financial asset is measured at amortised cost if
it meets both of the following conditions and is not designated as at FVTPL:

- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.

145 | Pakistan Cables Limited

 Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or
have been transferred and the Company has transferred substantially all risks and rewards of ownership.

The Company's financial assets currently comprise of the assets 'measured at amortised cost' and no financial
assets are measured at fair value through other comprehensive income (FVOCI) or fair value through profit or loss
(FVTPL) other than derivative financial instruments as disclosed in note 3.20.

3.18 Impairment of financial assets

The Company recognises loss allowances for Expected Credit Loss (ECLs) in respect of financial assets measured
at amortised cost.

The Company measures loss allowances at an amount equal to lifetime ECLs, except for the bank balance for
which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased
significantly since initial recognition (although in this case the measurement is at 12 month ECLs).

Loss allowances for trade receivables are always measured at an amount equal to lifetime ECLs.

The Company considers a financial asset in default when it is more than 365 days past due.

When determining whether the credit risk of a financial asset has increased significantly since initial 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 information and analysis, based on the
Company's historical experience and informed credit assessment including forward-looking information.

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 events over
the expected life of a financial instrument. 12-months 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 expected life of the
instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum
contractual period over which the Company is exposed to credit risk.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount
of the assets.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations
of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment
with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery.
The Company expects no significant recovery from the amount written off. However, financial assets that are
written off could still be subject to enforcement activities in order to comply with the Company's procedures for
the recovery of amounts due.

3.19 Financial liabilities

Financial liabilities include long-term borrowings, short-term borrowings from banking companies, trade and
other payables, lease liabilities and mark-up accrued on bank borrowings are initially recognised at the time when
the Company becomes party to the contractual provisions of the instruments. All financial liabilities are recognised
initially at fair value plus directly attributable transactions costs, if any, and subsequently measured at amortised
cost using effective interest rate method, where applicable. The Company derecognises the financial liabilities
when they are extinguished, that is, when the obligation referred in the contract is discharged, cancelled or have
expired. Gain or loss on derecognition is recognised in the statement of profit or loss.

Annual Report 2023 | 146

 3.20 Derivative financial instruments and hedge accounting
The derivative financial instruments are initially recognised at fair value on the date on which a derivative contract
is entered into and are subsequently remeasured at fair value.

The Company designates derivative financial instruments as cash flow hedge.

Changes in fair value of derivative hedging instruments designated as a cash flow hedge are recognised in the
statement of comprehensive income to the extent that the hedge is effective. To the extent the hedge is ineffective,
changes in fair value are recognised in the statement of profit or loss.

Amounts accumulated in equity are reclassified to the statement of profit or loss or directly included in the initial
cost or other carrying amount of asset or liability in the periods in which the hedged item will affect the statement
of profit or loss / cost of asset.

3.21 Impairment of non - financial assets

The carrying amount of the Company's non-financial assets other than deferred tax assets and inventories are
reviewed at each reporting date to determine whether there is any objective evidence that an asset or group of
assets may be impaired. If any such an evidence exists, the asset's or group of assets' recoverable amount is
estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable
amount. Recoverable amount is the higher of the value in use and fair value less cost to sell. Impairment losses
are recognised in the statement of profit or loss.

3.22 Contingent liabilities

Contingent liabilities are disclosed when the Company has a possible obligation as a result of past events, whose
existence will be confirmed only by the occurrence or non-occurrence, at one or more uncertain future events not
wholly within the control of the Company; or the Company has a present legal or constructive obligation that arises
from past events, but it is not probable that an outflow of resources embodying economic benefits will be required
to settle the obligation, or the amount of the obligation can not be measured with sufficient reliability.

3.23 Segment Reporting

Segment results that are reported to the Company's Chief Executive Officer (CEO), the chief operating decision
maker include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Unallocated items, if any, comprise mainly corporate assets, head office, expenses and tax assets and liabilities.
Management has determined that the Company has a single reportable segment and therefore it has only presented
entity wise disclosures.

3.24 Government grants

Government grants are transfers of resources to an entity by a government entity in return for compliance with
certain past or future conditions related to the entity's operating activities - e.g. a government subsidy. The definition
of "government" refers to governments, government agencies and similar bodies, whether local, national or
international.

The Company recognises government grants when there is reasonable assurance that grants will be received and
the Company will be able to comply with conditions associated with grants.

Government grants are recognised at fair value, as deferred income, when there is reasonable assurance that the
grants will be received and the Company will be able to comply with the conditions associated with the grants.

Grants that compensate the Company for expenses incurred, are recognised on a systematic basis in the income
for the year in which the related expenses are recognised. Grants that compensate for the cost of an asset are
recognised in income on a systematic basis over the expected useful life of the related asset.

147 | Pakistan Cables Limited

 A loan is initially recognised and subsequently measured in accordance with IFRS 9. IFRS 9 requires loans at
below-market rates to be initially measured at their fair value - e.g. the present value of the expected future cash
flows discounted at a market-related interest rate. The benefit that is the government grant is measured as the
difference between the fair value of the loan on initial recognition and the amount received, which is accounted for
according to the nature of the grant.

3.25 Leases
The Company assesses whether a contract is or contains a lease at inception of the contract. This assessment
involves the exercise of judgement about whether it depends on a specified asset, whether the Company obtains
substantially all the economic benefits from the use of that asset, and whether the Company has the right to direct
the use of the asset.

The Company recognises a right-of-use (ROU) asset and a lease liability at the lease commencement date, except
for short term leases of 12 months or less and leases of low value items, which are expensed in the statement of
profit or loss on a straight-line basis over the lease term.

The lease liability is initially measured at the present value of the lease payment that are not paid at the
commencement date, discounted using the interest rate implicit in the lease. If this rate cannot be readily determined,
the Company uses the incremental borrowing rate applicable in the market for such leases.

The lease liability is subsequently measured at amortized cost using the effective interest rate method and
remeasured (with a corresponding adjustment to the related ROU asset) when there is a change in future lease
payments in case of renegotiation, changes of an index or rate or in case of reassessment of options.

At inception, the ROU asset comprises the initial lease liability, initial direct costs and the obligations to refurbish
the asset, less any incentives granted by the lessors. The ROU asset is depreciated over the shorter of the lease
term or the useful life of the underlying asset. The ROU asset is subject to testing for impairment if there is an
indicator for impairment, as for owned assets.

4 PROPERTY, PLANT AND EQUIPMENT Note 2023 2022

(Rupees in ‘000)

Operating fixed assets 4.1 7,200,107 6,140,353

Capital work-in-progress 4.2 7,244,430 4,488,469
14,444,537 10,628,822

Annual Report 2023 | 148

 4.1 Operating fixed assets
2023
Cost / revaluation Depreciation Net book Rate
As at Additions Write-off Disposals As at As at For the Disposals Write-off As at value as at %
July 01, June 30, July 01, year June 30, June 30,
2022 2023 2022 2023 2023
(Rupees in ‘000)
Leasehold land at
revalued amount 4,995,250 92,665 - - 5,087,915 - - - - - 5,087,915 -

Building on leasehold land

at revalued amount 504,810 1,052,608 - - 1,557,418 - 31,884 - - 31,884 1,525,534 2.5 & 5

Leasehold improvements 36,271 2,357 - - 38,628 31,911 2,293 - - 34,204 4,424 20 & 33.3

Plant and machinery 2,444,728 17,793 (361,825) (13,720) 2,086,976 1,916,063 97,890 (13,720) (361,825) 1,638,408 448,568 8, 12 & 25

Office equipment
and appliances 172,184 23,931 (54,665) - 141,450 143,638 17,574 - (54,665) 106,547 34,903 12, 25 & 33.3

Furniture and fittings 42,056 1,560 (7,769) - 35,847 29,914 2,674 - (7,769) 24,819 11,028 8 & 12

Vehicles 133,416 49,560 (139) (14,349) 168,488 66,844 27,767 (13,717) (139) 80,755 87,733 20

Loose tools 6,468 - (370) - 6,098 6,460 6 - (370) 6,096 2 33.3

8,335,183 1,240,474 (424,768) (28,069) 9,122,820 2,194,830 180,088 (27,437) (424,768) 1,922,713 7,200,107

Cost of above assets include cost of operating assets of Rs. 1,303.40 million (2022: Rs. 1,668.76 million) having net book value of Nil value at the reporting date which are still in use.

2022
Cost / revaluation Depreciation Net book Rate
As at Additions Revaluation (Adjustments As at As at For the (Adjustments As at value as at %
July 01, surplus / Disposals) June 30, July 01, year / Disposal) June 30, June 30,
2021 2022 2021 2022 2022

(Rupees in ‘000)
Leasehold land at
revalued amount 1,867,603 - 3,127,647 - 4,995,250 - - - - 4,995,250 -

Building on leasehold land

at revalued amount 471,967 - 103,548 (70,705) 504,810 47,124 23,581 (70,705) - 504,810 5

Leasehold improvements 36,271 - - - 36,271 28,999 2,912 - 31,911 4,360 20 & 33.3

Plant and machinery 2,336,510 134,839 - (26,621) 2,444,728 1,837,494 104,808 (26,239) 1,916,063 528,665 8, 12 & 25

Office equipment
and appliances 159,173 14,506 - (1,495) 172,184 130,189 14,897 (1,448) 143,638 28,546 12, 25 & 33.3

Furniture and fittings 42,024 127 - (96) 42,056 26,866 3,144 (96) 29,914 12,142 8 & 12

Vehicles 115,674 38,286 - (20,544) 133,416 61,994 20,410 (15,560) 66,844 66,572 20

Loose tools 6,468 - - - 6,468 6,319 141 - 6,460 8 33.3

5,035,690 187,758 3,231,195 (119,461) 8,335,183 2,138,985 169,893 (114,048) 2,194,830 6,140,353

149 | Pakistan Cables Limited

4.1.1 Factory of the Company is situated at 11.15 acres of land at B/21, S.I.T.E., Karachi. In addition to it, Plot No. K-23 at
42 acres of land at Nooriabad has been acquired for expansion. During the year, Company has also purchased land
of 3.9 acres at Plot No. C-246 and C-247 Nooriabad, Sindh.

4.1.2 Valuation of leasehold land and the building thereon was carried out by the Company as of June 30, 2022 through
MYK Associates (Private) Limited (an independent valuer) on market value basis after making independent market
inquiries from local estate agents / realtors in the vicinity to establish the present market value. Revaluations of
the above assets were earlier carried out on June 30, 2005, June 30, 2008, June 30, 2011, June 30, 2014, June 30,
2016 and June 30, 2019. Resulting surplus has been credited to the revaluation surplus account, net of related tax
effect. The balance in the surplus on revaluation of land and building as at the reporting date are not available for
distribution to the shareholders. Had there been no revaluation, the related details under the cost model would
have been as follows:
Cost Accumulated Net book
depreciation value
(Rupees in ‘000)

Leasehold land at Plot No. B-21, S.I.T.E., Karachi - - -

Leasehold land at Plot No. K-23, S.I.T.E., Nooriabad 515,422 - 515,422
Leasehold land at Plot No. C-246 and C-247, S.I.T.E., Nooriabad 92,665 - 92,665
Building on leasehold land at Plot No. B-21, S.I.T.E., Nooriabad 184,308 105,090 79,218
Building on leasehold land at Plot No. K-23, S.I.T.E., Nooriabad 1,052,608 2,193 1,050,415
As at June 30, 2023 1,845,003 107,283 1,737,720

As at June 30, 2022 699,730 100,163 599,567

The forced sale value of the revalued leasehold land and building has been assessed at Rs. 4,070 million (2022:
3,996 million) and Rs. 1,243 million (2022: 4,03 million) respectively.
4.1.3 Details of operating fixed assets disposed off during the year are as follows:
Assets Cost Accumulated Net book Sale Gain Mode of Purchaser Address
depreciation value proceeds disposal

(Rupees in ‘000)

Honda Civic 2,747 2,198 549 3,175 2,626 Negotiation Mr. Rao Salman Karachi
Items of net book
value below Rs.
500,000 each 25,322 25,239 83 12,469 12,386 Various Various

2023 28,069 27,437 632 15,644 15,012

2022 48,756 43,343 5,413 38,314 32,901

4.1.4 Depreciation has been allocated as follows: Note 2023 2022

(Rupees in ‘000)

Cost of sales 30 142,506 139,881

Marketing, selling and distribution costs 31 20,856 14,483
Administrative expenses 32 16,726 15,529
180,088 169,893

Annual Report 2023 | 150

 4.2 Capital work-in-progress (cost)

Note As at Additions Transfers As at

July 01, 2022 June 30, 2023
(Rupees in ‘000)

Plant and machinery 1,646,816 1,747,450 (11,090) 3,383,176

Building on leasehold land 4.2.1 2,817,363 2,059,142 (1,052,608) 3,823,897
Office equipments - 2,734 - 2,734
Leasehold improvements 709 1,648 (2,357) -
Advance for vehicles and furnitures and fittings 23,581 60,909 (49,867) 34,623
4,488,469 3,871,883 (1,115,922) 7,244,430

As at Additions Transfers As at
July 01, 2021 June 30, 2022
(Rupees in ‘000)

Plant and machinery 750,532 1,007,165 (110,881) 1,646,816

Building on leasehold land 4.2.1 1,114,427 1,702,936 - 2,817,363
Office equipments 862 4 (866) -
Leasehold improvements - 709 - 709
Advance for vehicles and furnitures and fittings 16,123 32,407 (24,949) 23,581
1,881,944 2,743,221 (136,696) 4,488,469

4.2.1 This includes borrowing cost related to the construction of factory amounting to Rs. 737.26 million (2022: Rs. 260.13
million) using rate ranging between 15.26% - 22.17% per annum (2022: 7.72% - 12.61% per annum).

5 LEASES

5.1 Right-of-use assets Note 2023 2022

(Rupees in ‘000)

As at July 01 29,511 51,584

Lease termination and reassessment (1,880) 1,947
Depreciation expense 5.2 (19,390) (24,020)
As at June 30 8,241 29,511
Lease term (in years) 5-6 5-6

5.2 The depreciation charge on right-of-use assets for the year has been allocated as follows:

Marketing, selling and distribution costs 31 11,879 16,509

Administrative expenses 32 7,511 7,511
19,390 24,020

151 | Pakistan Cables Limited

5.3 Lease Liabilities
Rental contracts for head offices, warehouses and sales offices are made for a fixed period subject to renewal upon
mutual consent of Company and lessor. Wherever practicable the Company seeks to include extension option to
provide operational flexibility. Lease terms are negotiated on an individual basis and contain a wide range of different
terms and conditions. Management exercises significant judgement in determining whether these extension and
termination options are reasonably certain to be exercised. The future lease payments have been discounted using
average borrowing rate applicable at inception of lease. The weighted average lessee's incremental borrowing rate
applied to the lease liabilities at inception of lease is 14.28%.

Set out below the carrying amount of lease liabilities and the movements during the year:
Note 2023 2022
(Rupees in ‘000)

As at July 01 12,997 19,917

Lease termination and reassessment (1,998) 3,242
Interest expense 33 1,078 2,361
Payments (8,272) (12,523)
As at June 30 3,805 12,997

Current 1,768 7,402

Non - current 2,037 5,595
3,805 12,997

Lease liabilities are payable as follows:

2023
Minimum Interest Present
lease payments value of minimum
lease payments
(Rupees in ‘000)

Less than one year 2,160 392 1,768

Between one and five years 2,160 123 2,037
4,320 515 3,805

2022
Minimum Interest Present
lease payments value of minimum
lease payments
(Rupees in ‘000)

Less than one year 8,632 1,230 7,402

Between one and five years 6,480 885 5,595
15,112 2,115 12,997

6 INTANGIBLE ASSETS Note 2023 2022

(Rupees in ‘000)

Operating intangible assets 6.1 10,444 16,431

Capital work-in-progress 6.2 1,500 1,315
11,944 17,746

Annual Report 2023 | 152

 6.1 Operating intangible assets
2023
Cost Amortization Net book Rate
As at Additions As at As at For the As at value as at %
July 01, 2022 June 30, 2023 July 01, 2022 year June 30, 2023 June 30, 2023

(Rupees in ‘000)
Computer software
and license fee 51,370 2,267 53,637 34,939 8,254 43,193 10,444 33.33

2022
Cost Amortization Net book Rate
As at Additions As at As at For the As at value as at %
July 01, 2021 June 30, 2022 July 01, 2021 year June 30, 2022 June 30, 2022

(Rupees in ‘000)
Computer software
and license fee 37,549 13,821 51,370 29,713 5,226 34,939 16,431 33.33

6.1.1 Amortization has been allocated as follows: Note 2023 2022

(Rupees in ‘000)

Cost of sales 30 5,860 2,320

Administrative expenses 32 2,394 2,906
8,254 5,226

6.2 Capital work-in-progress As at 01 Additions Transfers As at 30

July June
(Rupees in ‘000)

Software under implementation 1,315 750 (565) 1,500

2023 1,315 750 (565) 1,500

2022 4,781 10,205 (13,671) 1,315

7 INVESTMENT IN ASSOCIATED COMPANY

2023 2022 2023 2022

(% of holding) (Rupees in '000)

International Industries Limited (IIL) 633,600

(2022: 633,600) fully paid ordinary shares
of Rs.10 each [market value of Rs. 46.40
million (2022: Rs. 65.72 million)] 0.48 0.48 78,399 65,723

7.1 Associate is an entity over which the Company has significant influence but no control. Company's investee Company
is considered to be its associate by virtue of common directorship.

153 | Pakistan Cables Limited

7.2 During the year, Rs. 4.78 million (2022: Rs. 18.63 million) is recognised in the statement of profit or loss as the Company's
share of the associated Company's profit, Rs. 12.88 million is increased in surplus on revaluation of assets on account
as its share of surplus on the revaluation - net of tax of the associate's land and buildings (2022: increased Rs. 2.73
million). Further, Rs. 0.03 million (2022: Loss of Rs. 0.13 million) is recognised in statement of other comprehensive
income as its share of associated company's other comprehensive income. Dividend amounting to Rs. 7.29 million
(2022: Rs. 5.39 million) was received from the associated Company during the year.

7.3 Summarised financial information of associated company International Industries

Limited (IIL)
March 31, March 31,
2023 2022
(Un-audited)
(Rupees in ‘000)
Assets
Non-current assets 32,546,473 28,364,039
Current assets 45,553,868 47,525,182

Liabilities
Non-current liabilities 7,683,070 7,140,267
Current liabilities 36,189,218 38,318,385

Revenue 106,289,510 118,725,871

Profit for the year 995,148 3,880,513

Other comprehensive income / (loss) 6,006 (27,077)
Total comprehensive income (100%) 1,001,154 3,853,436

Increase in revaluation surplus on

property (land and building) 3,157,804 669,877

Total comprehensive income (0.48%) 19,963 21,712

7.4 Above associate has been equity accounted for up to March 31, 2023. Management does not expect the results of
operations for the 3 months ended June 30, 2023 to be material.

8 LONG-TERM LOANS RECEIVABLE Note 2023 2022

(Rupees in ‘000)

Considered good - secured

Due from non-executive employees 12,346 9,145
Due from executives 7,812 1,356
8.2 20,158 10,501
Current portion of long-term loans 12 (6,537) (4,232)
13,621 6,269

Annual Report 2023 | 154

 8.1 Above loans have been given to the employees for the purchase of motor cars, motorcycles and other purposes as per
the Company policy and agreement with the workers' union. These are repayable in thirty-six to sixty equal monthly
principal installments. This loan includes loans of Rs. 13.71 million (2022: Rs. 5.97 million) for the purchase of motor
car and advance house rent that carry mark-up of 5% and 8% per annum. Furthermore, it also includes motorcycle
and daughter's marriage loan amounting to Rs. 6.45 million (2022: Rs. 4.53 million) that are interest free.

Note 2023 2022

(Rupees in ‘000)
8.2 Movement during the year is as follows:

Opening balance 10,501 12,429

Loan granted 15,358 4,060
Mark-up accrued 35 450 259
Repayment of loan (6,151) (6,247)
Closing balance 20,158 10,501

9 STORES AND SPARES

Stores 4,242 6,822

Spares [including Rs. 10.95 million in transit (2022: Rs. 5.32 million)] 95,387 69,866
99,629 76,688
Provision against slow moving stores and spares 9.1 (19,616) (13,461)
80,013 63,227

9.1 Provision against slow moving stores and spares

Balance as at July 01 13,461 11,354

Charge during the year 6,155 2,107
Balance as at June 30 19,616 13,461

10 STOCK-IN-TRADE

Raw materials [including Rs. 588.32 million in transit

(2022: Rs. 859.69 million)] 10.1 1,833,785 1,989,924
Work-in-process 10.2 786,361 592,355
Finished goods 10.3 1,096,209 1,168,018
Scrap 44,868 113,154
3,761,223 3,863,451

10.1 Raw material includes slow moving items amounting to Rs. 32.07 million (2022: Rs. 20.70 million) against which provision
has been made.

10.2 Work-in-process include slow moving items amounting to Rs. 34.75 million (2022: Rs. 28.85 million) stated at their net
realizable values against their cost of Rs. 63.56 million (2022: Rs. 52.06 million).

10.3 Finished goods include slow moving items amounting to Rs. 69.23 million (2022: Rs. 19.57 million) stated at their net
realizable values against their cost of Rs. 117.27 million (2022: Rs. 55.52 million).

155 | Pakistan Cables Limited

 Note 2023 2022
(Rupees in ‘000)
10.4 Provision against raw materials

Balance as at July 01 20,704 22,472

Charge / (reversal) during the year 11,370 (1,768)
Balance as at June 30 32,074 20,704

11 TRADE DEBTS

Unsecured and non-interest bearing

Due from related parties 11.1 421,521 365,597
Others 3,777,194 3,791,902
4,198,715 4,157,499
Allowance for expected credit losses 11.2 (52,136) (53,185)
4,146,579 4,104,314

11.1 The related parties from whom the debts are due are as under:

Intermark (Private) Limited 420,876 354,029

Fauji Fertilizer Company Limited 411 2,819
International Industries Limited 234 -
National Foods Limited - 8,007
Cherat Packaging Limited - 742
11.1.1 421,521 365,597

11.1.1 Above balances are mark-up free and unsecured. Aging of above balances at the reporting date is as follows:

Not past due 421,521 357,031

Past due 1-60 days - 8,566
421,521 365,597

None of the above debts are considered to be impaired.

11.2 Allowance for expected credit losses

Balance as on July 01 53,185 65,382

Reversal during the year - net (1,049) (8,724)
Trade debts balances written off during the year - (3,473)
52,136 53,185

Annual Report 2023 | 156

 11.3 The related parties from whom the maximum aggregate amount outstanding at any time during the year calculated by
reference to month-end balances are as under:

Note 2023 2022

(Rupees in ‘000)

Intermark (Private) Limited 479,195 410,075

Fauji Fertilizer Company Limited 8,929 30,731
National Foods Limited 8,007 8,007
International Steels Limited 2,356 3,467
International Industries Limited 1,894 2,157
Cherat Packaging Limited - 13,180
National Management Foundation - 4,114

12 SHORT-TERM LOANS AND ADVANCES

Current portion of long-term loans 8 6,537 4,232

Short-term advances to employees 4,213 3,622
Advances to suppliers 170,693 83,410
174,906 87,032
181,443 91,264

13 SHORT-TERM DEPOSITS AND PREPAYMENTS

Deposits 44,771 13,319

Prepayments 14,809 13,885
59,580 27,204

14 OTHER RECEIVABLES - considered good

Sales tax refundable 304,578 89,282

Receivable from staff pension fund - related party 21.1.2 30,989 48,195
Derivative financial assets - 5,680
Margin against guarantee - related party 23,684 -
Others 633 2,307
359,884 145,464

157 | Pakistan Cables Limited

15 CASH AND BANK BALANCES Note 2023 2022
(Rupees in ‘000)
Cash at bank
Current accounts - local currency 46,562 189,535
- foreign currency 101,765 54,575
Saving accounts - local currency 15.1 12,610 11,399
Cash in hand 404 305
161,341 255,814

15.1 The profit and loss sharing bank balance carry profit at the rate of 19.50% (2022: 12.25%) per annum.

16 ISSUED, SUBSCRIBED AND PAID-UP CAPITAL

2023 2022 Note 2023 2022

(Number of shares) (Rupees in ‘000)

Authorised Share Capital

50,000,000 50,000,000 Ordinary shares of Rs. 10 each 500,000 500,000

Issued, subscribed and paid-up capital

15,590,819 15,590,819 Ordinary shares of Rs. 10 each

fully paid in cash 155,908 155,908

174,775 174,775 Ordinary shares of Rs. 10 each

issued as fully paid for
consideration other than cash 1,748 1,748

33,741,150 19,812,376 Ordinary shares of Rs. 10 each

issued as fully paid bonus shares 337,411 198,123
49,506,744 35,577,970 16.1 495,067 355,779

16.1 This includes 8,477,671 (2022: 6,092,470) ordinary voting shares of Rs. 10 each held by International Industries Limited
(associated company).

17 SHARE PREMIUM RESERVE

This reserve can be utilised by the Company only for the purposes specified in section 81 of the Companies Act, 2017.

Annual Report 2023 | 158

 18 REVALUATION SURPLUS ON PROPERTY (land and building) - net of tax
Note 2023 2022
(Rupees in ‘000)

Leasehold land
Balance as at July 01 4,479,828 1,352,181
Surplus arising on revaluation carried out during the year - 3,127,647
4,479,828 4,479,828
Building on leasehold land
Balance as at July 01 of revaluation surplus 420,665 335,771
Surplus arising on revaluation carried out during the year - 103,548
Transferred to unappropriated profit in respect of
incremental depreciation charged during the year 18.2 (24,764) (18,654)
395,901 420,665
Related deferred tax liability at beginning of the year (121,993) (97,374)
Related deferred tax liability on revaluation carried
out as at June 30, 2022 - (30,029)
Related deferred tax liability of amount transferred to
unappropriated profit in respect of incremental
depreciation charged during the year 18.2 7,181 5,410

Balance of deferred tax liability as of the year-end 24 (114,812) (121,993)

Share of surplus on revaluation of land and building

of the associated Company - [net of tax of Rs. 4.31
million (2022: Rs. 2.04 million)] 24,433 11,550
4,785,350 4,790,050

18.1 The revaluation surplus on land and building is a capital reserve and is not available for distribution to the shareholders
of the Company in accordance with section 241 of the Companies Act, 2017.

18.2 Net transfer to unappropriated profit amounted to Rs. 17.58 million (2022: Rs. 13.24 million).

19 GENERAL RESERVE
General reserve is maintained for fulfilling various business needs including meeting contingencies.

159 | Pakistan Cables Limited

20 LONG-TERM FINANCING - secured Note 2023 2022
(Rupees in ‘000)

Loans from conventional financial institutions

Long-Term Finance Facility 20.2 3,838,439 569,688
SBP Refinance - payroll - 90,784
SBP Refinance - renewable energy 20.3 99,549 98,023
Temporary Economic Refinance Facility (TERF) 20.4 1,519,643 648,086
5,457,631 1,406,581
Loans from islamic financial institutions
Islamic Temporary Economic Refinance
Facility (ITERF) 20.4 131,498 123,656
5,589,129 1,530,237
Less: Deferred income Government grant 23 (639,749) (283,522)
Less: Current portion on long-term financing

Conventional financial institutions

Long-Term Finance Facility (91,250) (297,917)
SBP Refinance - payroll - (87,102)
Temporary Economic Refinance Facility (TERF) (80,768) (7,567)
(172,018) (392,586)
Loans from Islamic financial institutions
Islamic Temporary Economic Refinance Facility (ITERF) (9,629) -
(181,647) (392,586)

4,767,733 854,129

20.1 Long-term loans have been obtained for the purpose of capital expenditure which are secured against mortgage
of land and building and hypothecation of specific plant and machinery. The Company has also availed long-term
loans against various refinancing schemes of State Bank of Pakistan (SBP) which includes Temporary Economic
Refinance Facility (TERF) and against Renewable Energy Scheme.

20.2 Long-term loans of Rs. 3,650 million has been obtained for capital expenditure which are secured against mortgage
of land and building at K-23 Nooriabad thereon (charge of Rs. 4,867 million). The total amount outstanding against
these loans are Rs. 3,650 million as on June 30, 2023 (2022: Nil). Rate of markup on the above loans ranges between
21.49% per annum and 22.58% per annum (2022: Nil). These are repayable in half yearly equal instalments of Rs.
107.14 million, Rs. 62.50 million and quarterly installment of Rs. 41.07 million commencing from March 07, 2025,
March 30, 2025 and March 12, 2025 respectively. The facility available under the above arrangement amounted to
Rs. 3,650 million of which the amount remained unutilised as at June 30, 2023 was Nil (2022: Nil).

Annual Report 2023 | 160

 The Company has also obtained certain long-term loans for the purpose of capital expenditure which are secured
against hypothecation of specific items of plant and machinery (charge of Rs. 701 million). The total amount
outstanding against these loans amounts to Rs. 188.40 million as on June 30, 2023 (2022: Rs. 319.70 million). Rate
of markup on these loans at the year end ranged between 18.10% per annum to 22.96% per annum (2022: 10.83%
per annum to 14.82% per annum). These loans are for five years from the date of disbursement and are repayable
in eight half yearly equal principal installments of Rs. 11.25 million and sixteen quarterly equal principal installments
of Rs. 17.18 million commencing from February 05, 2021 and December 28, 2021 respectively. The facility available
under the above arrangement amounted to Rs. 650 million of which the amount of Rs. 336.60 million has been paid
and the amount remained unutilised as at June 30, 2023 was Rs. 125 million (2022: facility available of Rs. 650
million of which amount remained unutilised at June 30, 2022 was Rs. 125 million).

20.3 In addition to the above, the Company has also obtained long-term loan of Rs. 98.00 million against SBP Renewable
Energy Scheme (2022: Rs. 98.00 million). The rate of markup on this loan is at 3.50% per annum (2022: 3.50% per
annum). This loan is secured against hypothecation of specific plant and machinery for a 10 year period.

20.4 In addition to the above, the Company has also obtained long-term loan of Rs. 1,624.15 million against Temporary
Economic Refinance Facility (TERF) under SBP refinance scheme (2022: Rs. 761.68 million). The rate of markup on
these loans ranged between 1.50% per annum to 2.50% per annum (2022: 1.50% per annum to 2.50% per annum).
These loans are secured against hypothecation of specific plant and machinery for a 10 year period.

21 STAFF RETIREMENT BENEFITS

21.1 Defined benefit plans

The details of the actuarial valuation under the projected unit credit method as at June 30, 2023 for funded pension
and unfunded gratuity schemes are as follows:

2023 2022
Pension Gratuity Pension Gratuity
(%)
21.1.1 Actuarial assumptions

Discount rate 15.25 15.25 13.00 13.00

Expected rate of salary increase
- Executives 14.50 - 12.50 -
- Workmen - 11.75 - 9.75
Pension increase 2.00 - - -

Note 2023 2022

Pension Gratuity Pension Gratuity
(Rupees in ‘000)
21.1.2 Statement of financial position reconciliation

Fair value of plan assets 21.1.3 462,343 - 444,375 -

Present value of defined benefit
obligations 21.1.4 (431,354) (56,936) (396,180) (49,706)
Net asset / (liability) 21.1.8 30,989 (56,936) 48,195 (49,706)

161 | Pakistan Cables Limited

 2023 2022
Note Pension Gratuity Pension Gratuity
(Rupees in 000)
21.1.3 Changes in fair value of plan assets

Fair value as at July 01 444,375 - 481,107 -

Interest income 56,272 - 46,605 -
Remeasurement loss due to
investment return (15,287) - (53,206) -
Benefits paid (23,017) - (30,131) -
Fair value as at June 30 21.1.10 462,343 - 444,375 -

21.1.4 Changes in present value of

defined benefit obligation

Obligation as at July 01 396,180 49,706 425,652 44,034

Current service cost 5,803 2,690 6,605 2,451
Interest cost 50,007 6,253 41,059 4,357
Remeasurement gain / (loss) due to:
- Change in financial assumptions (2,663) (798) (54,574) 343
- Experience adjustment 5,044 2,291 7,569 (542)
Benefits paid (23,017) (3,206) (30,131) (937)
Obligation as at June 30 431,354 56,936 396,180 49,706

21.1.5 Amounts recognised in the

statement of profit or loss

Service cost 5,803 2,690 6,605 2,451

Net interest on net defined benefit liability (6,265) 6,253 (5,546) 4,357
Chargeable in statement of profit or loss (462) 8,943 1,059 6,808

21.1.6 Amounts recognised in statement

of other comprehensive income (OCI)

Remeasurement due to:

Change in financial assumptions (2,663) (798) (54,574) 343
Experience adjustment 5,044 2,291 7,569 (542)
Investment return 15,287 - 53,206 -
Chargeable to statement of other
comprehensive income 21.1.7 17,668 1,493 6,201 (199)

Total 17,206 10,436 7,260 6,609

21.1.7 Expense recognised in the statement of other comprehensive income for both the above benefits is Rs. 19.16 million
(2022: Rs. 6.00 million).

Annual Report 2023 | 162

 Note 2023 2022
Pension Gratuity Pension Gratuity
(Rupees in ‘000)
21.1.8 Recognised asset / (liability)

Balance as on July 01 48,195 (49,706) 55,455 (44,034)

Expense recognised 21.1.6 (17,206) (10,436) (7,260) (6,609)
Payments during the year - 3,206 - 937
Company's asset / (liability)
as at June 30 30,989 (56,936) 48,195 (49,706)

21.1.9 Actual return on plan assets 40,985 - (6,601) -

21.1.10 Fund investments composition / fair value of plan assets

2023 2022 2023 2022
(Percentage) (Rupees in '000)
Having quoted market price
Listed equity shares
- International Industries Limited
(related party) 4% 6% 18,739 26,541
- Engro Polymer & Chemicals
Limited (Preference shares) 2% 2% 8,835 8,356

Mutual funds
- NBP Sarmaya Izafa Fund (Formerly:
NAFA Asset Allocation Fund) 8% 8% 37,368 36,403
- NBP Islamic Sarmaya Izafa Fund
(Formerly: NAFA Islamic Asset
Allocation Fund) 8% 8% 35,916 35,022
- Atlas Islamic Income Fund 0.8% 0.7% 3,757 3,251
- Atlas Income Fund 0.3% 0.3% 1,473 1,282
- Atlas Money Market Fund 1% 0.0% 5,603 -
- Al-Falah GHP Islamic Income Fund 0.6% 0.6% 2,834 2,472

Not having quoted market price

Government bonds
- Pakistan Investment Bonds
(3 to 10 years) 50% 72% 229,969 321,588

Corporate bonds
- TFC Soneri Bank Limited 4% 0% 19,408 -
Bank balances 21% 2% 98,441 9,460
462,343 444,375

163 | Pakistan Cables Limited

 2023 2022 2021 2020 2019
(Rupees in '000)
21.1.11 Historical information

Pension

Fair value of plan assets 462,343 444,375 481,107 430,134 370,405

Present value of the defined
benefit obligation of pension (431,354) (396,180) (425,652) (404,006) (372,250)
Surplus / (deficit) in the plan 30,989 48,195 55,455 26,128 (1,845)

Gratuity (unfunded)

Fair value of plan assets - - - - -

Present value of the defined
benefit obligation of gratuity (56,936) (49,706) (44,034) (42,628) (31,280)
Deficit in the plan (56,936) (49,706) (44,034) (42,628) (31,280)

21.1.12 Sensitivity analysis for actuarial assumptions

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

Impact on obligation of change in assumption

2023 2022
Increase in Decrease in Increase in Decrease in
assumption assumption assumption assumption
(Rupees in '000) (Rupees in '000)

Discount rate - change by 1% (31,799) 36,289 (29,768) 34,090

Salary increase - change by 1% 11,596 (10,548) 10,733 (9,729)
Pension increase - change by 1% 26,500 (28,110) 25,269 -

If life expectancy increases by 1 year, the obligation increases by Rs. 11.92 million (2022: Rs. 10.28 million). In addition the weighted
average of plan durations for pension is 8.2 years (2022: 8.3 years), while for gratuity it is 8.6 years (2022: 8.8 years).

21.1.13 Maturity profile of the defined benefit obligation - undiscounted payments

(Time in years)
1 2 3 4 5
(Rupees in '000)
Distribution of timing
of benefit payments
- Pension 47,412 51,204 56,914 58,293 59,053
- Gratuity 6,082 3,015 8,075 4,530 8,553
53,494 54,219 64,989 62,823 67,606

Annual Report 2023 | 164

 21.1.14 Cost projections for the financial year ending June 30, 2024 (chargeable to the statement of profit or loss), as per
the actuary, for pension amounts to Rs. 1.98 million, while for the gratuity it amounts to Rs. 11.14 million.

21.1.15 All employees in managerial and supervisory categories other than workers are eligible to the pension scheme.
However, the plan is closed to new members. Normal pension age is 55 years, although service after attaining the
normal pension age is also pensionable. Settlement of the pension is based on the basic salary and as per the
service rules. At June 30, 2023, 50 members (2022: 56 members) were covered under the pension scheme. Gratuity
is for the unionised staff (non-management employees). In this case the normal retirement age is 60 years and is
payable on the basis of basic salary as per service rules. At June 30, 2023, 196 members (2022: 200 members)
were covered under the gratuity scheme.

21.2 Defined contribution plan

The Company has set up provident fund for its permanent employees and contributions were made by the Company
to the Trust in accordance with the requirement of Section 218 of the Companies Act, 2017. Total charge against
provident fund for the year ended June 30, 2023 was Rs. 26.37 million (2022: Rs. 21.92 million).

Investments in collective investment schemes and listed equity securities out of provident fund have been made in
accordance with the provisions of section 218 of the Companies Act, 2017 and the Rules formulated for this purpose.

22 STAFF COMPENSATED ABSENCES

This represents accrual for staff compensated absences and includes liability in respect of key management personnel
amounting to Nil (2022: Nil). During the year the Company decreased its accrual by Rs. 2.51 million (2022: increased
by Rs. 0.72 million) which has been recognised in the statement of profit or loss.

23 DEFERRED INCOME - GOVERNMENT GRANT

The value of benefit of below-market interest rate on the loans disclosed in note 20 to these financial statements has
been accounted for as government grant under IAS - 20 Government grants.

Note 2023 2022

(Rupees in ‘000)

Balance at beginning of the year 283,522 39,875

Deferred grant recorded:
- under SBP Refinance Scheme - 41,710
- under Temporary Economic Refinance Facility (TERF) 425,113 226,463
425,113 268,173
Amortisation of deferred income - Government grant during the year 35 (68,886) (24,526)
Balance at end of the year 20 639,749 283,522
Less: current portion of deferred income - Government grant 25 (75,133) (34,535)
564,616 248,987

165 | Pakistan Cables Limited

24 DEFERRED TAXATION LIABILITY - net

2022 2023

Balance as at Recognised in Recognised in Recognised in Balance as at Recognised in Recognised in Recognised in Balance as at

June 30, 2021 statement of surplus on other June 30, 2022 statement of surplus on other June 30, 2023
profit or loss revaluation of comprehensive profit or loss revaluation of comprehensive
property, plant income property, plant income
and equipment and equipment

(Rupees in '000)

Taxable temporary differences on

Accelerated tax deprecation 17,215 1,164 - - 18,379 33,320 - - 51,699

Surplus on revaluation of building on leasehold land 97,374 (5,410) 30,029 - 121,993 (7,181) - - 114,812
Share of surplus on revaluation of land and
building of the associated Company 1,556 - 482 - 2,038 - 2,274 - 4,312
Derivative financial assets - - - 1,602 1,602 - - (1,602) -
Share of profit of an equity accounted
associated Company 9,007 1,986 - - 10,993 (376) - - 10,617
125,152 (2,260) 30,511 1,602 155,005 25,763 2,274 (1,602) 181,440
Deductible temporary differences on

Provision for staff retirement benefit (12,779) (1,702) - 58 (14,423) (1,664) - (433) (16,520)
Provision for doubtful debts (18,961) 3,537 - - (15,424) 304 - - (15,120)
Provision for slow-moving stores and spares (3,293) (611) - - (3,904) (1,785) - - (5,689)
Provision for import levies and other provisions (50,817) (4,394) - - (55,211) (3,503) - - (58,714)
(85,850) (3,170) - 58 (88,962) (6,648) - (433) (96,043)

Deferred taxation - net 39,302 (5,430) 30,511 1,660 66,043 19,115 2,274 (2,035) 85,397

24.1 Deferred tax balance has been recognised at the rate at which these are expected to be settled / realised.

Note 2023 2022

(Rupees in ‘000)
25 TRADE AND OTHER PAYABLES

Creditors 1,605,786 1,307,480

Accrued expenses 713,355 666,681
Salary and wages payable 28,431 19,113
Accrual for import levies 25.2 649,785 505,406
Payable to staff provident fund - related party 4,981 3,583
Workers' profit participation fund 25.3 61,887 71,618
Workers' welfare fund 22,078 26,150
Current portion of deferred income - Government grant 23 75,133 34,535
Security deposits from distributors and employees 25.4 6,369 6,694
Derivative financial liability - 156
Withholding income tax payable 12,120 23,539
Others 2,501 2,434
3,182,426 2,667,389

Annual Report 2023 | 166

 25.1 All the above liabilities are non-interest bearing except as disclosed in note 25.4 below.

25.2 This represents accrual made on account of levies on import of raw materials and machinery.

Note 2023 2022

(Rupees in ‘000)
25.3 Workers' profit participation fund

Balance as on July 01 71,618 37,214

Mark-up on fund utilized in the Company's business 33 1,229 192
72,847 37,406
Allocation for the year 34 60,658 71,426
133,505 108,832
Amount paid to the fund (71,618) (37,214)
Balance as at June 30 25 61,887 71,618

25.4 These deposits are placed in a separate bank account and comply with the requirement of section 217 of Companies
Act, 2017. The break-up of security deposits is as follows:

Deposits from distributors 25.5.1 5,963 5,963

Deposits from employees 25.5.2 406 731
6,369 6,694

25.5.1 This includes security deposit from distributors under mark-up arrangements amounting to Rs. 5.0 million (2022: Rs.
5.0 million) and carries mark-up at 6% per annum.

25.5.2 These are deposits from employees as a part of their employment contract with the Company and are non-interest
bearing deposits.
Note 2023 2022
(Rupees in ‘000)
26 SHORT-TERM BORROWINGS - Secured

Running musharka under Shariah arrangements 26.1 801,175 343,897

Running finances under mark-up arrangements 26.2 329,388 866,873
Running finances from banks 1,130,563 1,210,770

Short term finances under mark-up arrangements 26.3 2,870,000 3,562,560

Export financing scheme - 124,081
4,000,563 4,897,411

26.1 Running musharka under shariah arrangements

Running Musharaka under Shariah arrangement carries mark-up at the rate of 21.80% per annum to 22.18% per
annum (2022: 12.15% per annum to 14.41% per annum) and the available facility is Rs. 1,250 million (2022: Rs. 1,000
million). At June 30, 2023, the facility unutilised was Rs. 449 million (2022: Rs. 656 million).

167 | Pakistan Cables Limited

26.2 Running finances under mark-up arrangements
The Company has also arranged short-term running finance facilities under mark-up arrangements from certain
banks. The overall facility for these running finances under mark-up arrangements amounts to Rs. 5,150 million (2022:
Rs. 5,213 million). Rate of mark-up on these running finance facilities under mark-up arrangements ranges between
22.20% per annum to 22.94% per annum net of prompt payment rebate (2022: 12.04% per annum to 15.06% per annum).
The facilities will expire between June 30, 2023 to December 31, 2023 and are renewable.

26.3 Short term finances under mark-up arrangements

Amount outstanding against the short term finance facilities as at June 30, 2023 was Rs. 2,870 million (2022: Rs. 3,563
million) against the available facilities of Rs. 6,145 million (2022: Rs. 5,941 million). This includes facilities earmarked
out of the total running finance facilities obtained from banks. Mark-up on short term finance is agreed at each
disbursement and as at June 30, 2023, it was ranging between 21.52% per annum to 22.49% per annum (2022: 13.75%
per annum to 14.33% per annum).

26.4 Other facilities

The facility for opening letters of credit and guarantees as at June 30, 2023 amounted to Rs. 8,200 million including
Rs. 2,050 million relating to the guarantees (2022: Rs. 6,497 million including Rs. 1,805 million relating to the guarantees)
of which the amount remained unutilised as at June 30, 2023 was Rs. 5,106 million including Rs. 589 million relating
to the guarantees (2022: Rs. 3,457 million including Rs. 328 million relating to the guarantees).

26.5 Securities
These above arrangements are secured by way of joint pari passu hypothecation over stocks, stores and spares and
present and future trade debts of the Company of Rs. 11,225 million and a ranking charges of Rs. 100 million and Rs.
145 million for facilities availed from Bank Al Habib Limited and Habib Bank Limited respectively, which will be
upgraded to first Joint Pari Passu Charge.

27 CONTRACT LIABILITIES
The contract liabilities primarily relate to the advance consideration received from customers for future sales as per
the Company's policy, for which revenue is recognised at a point in time. Revenue recognised from contract liabilities
during the year amounts to Rs. 917.07 million (2022: Rs. 691.89 million).

28 CONTINGENCIES AND COMMITMENTS

28.1 Contingencies
a) The Company has issued to the Collector of Customs post dated cheques amounting to Rs. 5.40 million (2022: Rs.
9.50 million) against partial exemption of import levies.

b) Bank guarantees amounting to Rs. 1,461 million (2022: Rs. 1,477 million) have been given to various parties for
contract performance, tender deposits, import levies, etc.

c) Refer note 36 also for tax related details.

Annual Report 2023 | 168

 28.2 Commitments
a) Aggregate commitments for capital expenditure as at June 30, 2023 amounted to Rs. 1,351.42 million (2022: Rs.
2,446.04 million).

b) Commitments under letters of credit for the import of raw materials, etc. (non-capital expenditure) as at June 30,
2023 amounted to Rs. 1,412.63 million (2022: Rs. 1,481.62 million). These are in respect of the letters of credit
opened before the year end but no shipment by then had been made.

2023 2022
(Rupees in ‘000)
29 REVENUE FROM CONTRACTS WITH CUSTOMERS

Gross local sales 24,349,454 24,303,386

Export sales 916,305 466,533
25,265,759 24,769,919

Sales tax (3,612,806) (3,602,260)

21,652,953 21,167,659

29.1 Disaggregation of revenue

In the following table, revenue is disaggregated by primary geographical markets, major product lines and sales channels:
2023 2022
(Rupees in ‘000)
Primary geographical markets
Pakistan 20,736,648 20,701,126
Africa 581,385 371,584
North America 281,007 50,682
South America 1,205 -
Middle East 8,341 21,173
Asia (other than Pakistan) 44,367 23,094
21,652,953 21,167,659
Major products lines
Wire and cables 21,328,712 20,828,700
Aluminium profile business 324,241 338,959
21,652,953 21,167,659
Sales channels
Goods sold:
- directly to consumers 18,101,222 17,202,805
- through intermediaries 3,551,731 3,964,854
21,652,953 21,167,659

169 | Pakistan Cables Limited

30 COST OF SALES Note 2023 2022
(Rupees in ‘000)

Opening work-in-process 592,355 532,820

Opening stock - raw material 1,989,924 1,093,179

Opening stock - scrap 113,154 64,743
2,103,078 1,157,922

Purchases of raw material 16,778,001 18,523,949

18,881,079 19,681,871

Sales of scrap material during the year (538,505) (594,591)

Closing stock - raw material 10 (1,833,785) (1,989,924)
Closing stock - scrap 10 (44,868) (113,154)
(1,878,653) (2,103,078)
16,463,921 16,984,202

Stores and spares consumed 151,975 168,162

Fuel and power 530,732 412,141
Salaries, wages and benefits 30.1 911,996 819,440
Rent, rates and taxes 30.2 67,682 46,920
Insurance 18,900 14,618
Repairs and maintenance 79,763 81,868
Depreciation 4.1.4 142,506 139,881
Amortisation 6.1.1 5,860 2,320
Communication and stationery 9,063 9,174
Training, travelling and entertainment 106,875 74,234
Carriage and forwarding 29,285 22,362
Security expense 32,044 26,250
General works 40,886 29,708
Cost of production 2,127,567 1,847,078
19,183,843 19,364,100

Closing work-in-process 10 (786,361) (592,355)

Cost of goods manufactured 18,397,482 18,771,745
Opening stock of finished goods 1,168,018 813,122
19,565,500 19,584,867
Closing stock of finished goods 10 (1,096,209) (1,168,018)
18,469,291 18,416,849

30.1 Details of salaries, wages and benefits

Salaries, wages and benefits 890,768 802,237
Provident fund contributions 12,425 10,006
(Reversal) / charge for pension fund obligation (140) 389
Charge for staff retirement gratuity 8,943 6,808
911,996 819,440

30.2 This includes expense relating to short term and low value leases amounting to Rs. 4.61 million (2022: Rs. 1.78 million).

Annual Report 2023 | 170

 31 MARKETING, SELLING AND DISTRIBUTION COSTS Note 2023 2022
(Rupees in ‘000)

Salaries, wages and benefits 31.1 215,321 210,445

Rent, rates and taxes 31.2 16,054 10,646
Insurance 2,537 3,603
Repairs and maintenance 6,317 3,458
Communication and stationery 3,748 4,231
Training, travelling and entertainment 55,443 35,017
Advertising and publicity 190,991 272,585
Carriage and forwarding expenses 251,042 174,363
Commission 527 1,422
Depreciation 4.1.4 20,856 14,483
Depreciation on right-of-use asset 5.2 11,879 16,509
Subscriptions 3,194 2,250
Fuel and power 10,383 6,461
Others 18,710 7,449
807,002 762,922

31.1 Details of salaries, wages and benefits

Salaries, wages and benefits 207,806 203,619

Provident fund contributions 7,594 6,634
(Reversal) / charge for pension fund obligation (79) 192
215,321 210,445

31.2 This includes expense relating to short term and low value leases amounting to Rs. 15.34 million (2022: Rs. 9.86 million).

32 ADMINISTRATIVE EXPENSES Note 2023 2022

(Rupees in ‘000)

Salaries, wages and benefits 32.1 199,142 202,605

Insurance 5,244 4,735
Repairs and maintenance 21,244 15,825
Legal and professional 13,164 11,719
Donations and CSR 32.2 24,030 24,311
Auditors' remuneration 32.3 3,343 2,285
Communications and stationery 13,217 11,825
Training, travelling and entertainment 21,740 9,696
Depreciation 4.1.4 16,726 15,529
Depreciation on right-of-use asset 5.2 7,511 7,511
Amortisation 6.1.1 2,394 2,906
Fuel and power 10,825 7,590
Others 20,709 12,746
359,289 329,283

171 | Pakistan Cables Limited

32.1 Details of salaries, wages and benefits 2023 2022
(Rupees in ‘000)

Salaries, wages and benefits 193,034 196,849

Provident fund contributions 6,351 5,278
(Reversal) / charge for pension fund obligation (243) 478
199,142 202,605

32.2 Donations
Details of donations given to a single party exceeding Rs. 1,000,000/- or 10 percent of Company's total amount of
donation, whichever is higher, during the year are as follows:

Amir Sultan Chinoy Foundation 10,000 13,500

Aga Khan Cultural Service Pakistan 2,500 -
Childlife Foundation 2,252 1,000
Sina Health Education and Welfare Trust 1,900 -

32.2.1 During the year donation of Rs. 10.00 million (2022: Rs. 13.50 million) was made to the Amir Sultan Chinoy Foundation.
Details are as under:

Name of Director Nature of interest Name of Donee Address of Donee

Mr. Fahd K. Chinoy Common Directorship Amir Sultan Chinoy 101, Beaumont Plaza, 10, Beaumont
Foundation Road, Karachi.

32.3 Auditors' remuneration Note 2023 2022

(Rupees in ‘000)

Audit fee 1,600 1,154

Fee for the review of half yearly financial statements 600 383
Fee for the review of Code of Corporate Governance and other certificates 478 319
Out of pocket expenses and others 665 429
3,343 2,285

33 FINANCE COST

Mark-up on finances under mark-up arrangements 602,515 159,203

Mark-up on finances under a shariah compliance arrangement 33.1 106,159 53,186
Mark-up on finances under export refinance 2,276 523
Mark-up on long-term loans under mark-up arrangements 78,993 69,952
Un-winding of provision for GID cess 4,726 7,366
Mark-up on lease liability 5.3 1,078 2,361
Mark-up on workers' profits participation fund 25.3 1,229 192
Mark-up on SBP refinance schemes 112,780 38,047
Mark-up on distributors deposit 300 300
Exchange loss / (gain) 22,339 (32,934)
Bank charges 21,790 15,576
954,185 313,772

33.1 It includes mark-up paid amounting to Rs. 64.78 million (2022: Rs. 33.43 million).

Annual Report 2023 | 172

 Note 2023 2022
(Rupees in ‘000)
34 OTHER EXPENSES

Workers' profits participation fund 25.3 60,658 71,426

Workers' welfare fund 22,078 26,150
Liquidated damages for late deliveries 4,784 5,781
Others - 1,942
87,520 105,299
35 OTHER INCOME

Income from non-financial assets:

- Commission income 545 11,614
- Sale of general scrap 46,314 61,466
- Gain on disposal of fixed assets 4.1.3 15,012 32,901
- Others 117 194
61,988 106,175
Income from financial instruments:
- Mark-up income on loans to employees 8.2 450 259
- Profit on bank deposits and Term deposits receipt 2,309 934
- Amortisation of government grant 23 68,886 24,526
- Reversal of liabilities no longer payable 15,292 3,740
86,937 29,459
148,925 135,634
36 INCOME TAX EXPENSE

Current - for the year 420,114 460,620

- prior years - net (32,463) 48,022
Deferred tax - net 19,115 (5,430)
36.1 406,766 503,212

36.1 Relationship between average effective tax rate and an applicable tax rate

Profit before income tax 1,130,417 1,330,938

Tax at the applicable rate of 29% (2022: 29%) 327,821 385,972

Tax permanent difference (3) 2,424
Effect of provision for super tax under section 4C 108,456 55,872
Tax effect of expense that are not allowable in determining
the taxable income - net 3,891 20,758
Tax effect of income charged at different rate (936) (9,836)
Prior year tax (reversal) / provision (32,463) 48,022
Tax charge 406,766 503,212

36.2 The income tax assessments of the Company have been finalised upto and including the financial year ended June
30, 2022.

173 | Pakistan Cables Limited

36.3 Returns submitted under section 114 of the Income Tax Ordinance, 2001 for the tax years 2007, 2008, 2017, 2020,
and 2022 were amended under section 122(5A) of the Income Tax Ordinance, 2001 by the Income Tax Additional
Commissioner Inland Revenue Audit (ACIR), and return submitted for tax year 2019 was amended under section
122(1) of the Income Tax Ordinance, 2001 by the Deputy Commissioner Inland Revenue Audit-II (DCIR) . ACIR and
DCIR for these years have added back certain expenses and also demanded Workers Welfare Fund (WWF) despite
the fact that the same has already been deposited to Sindh Revenue Board in various years. The cases are pending
at various stages including Commissioner Appeals, ITAT, and High Court. The Comapny is expecting a favourable
outcome for all these years.

36.4 During the year Company received a notice on June 19, 2023 from taxation authorities under section 161(1A)/205/182
of the Income Tax Ordinance, 2001 for the monitoring of withholding taxes for the tax year 2021 demanding amount
of Rs. 67.96 million in respect of alleged non-withholding of payments made on various expenses. The Company is
confidence that above notice will be withdrawn after submission of relevant informaiton.

36.5 The Company computes current tax expense based on the generally accepted interpretation of the tax laws to
ensure that the sufficient provision for the purpose of taxation is available. According to management, the tax
provision made in the financial statements is sufficient.

37 EARNINGS PER SHARE - basic and diluted 2023 2022

(Rupees in ‘000)

Profit after taxation 723,651 827,726

(Number of shares)
in ’000
(Restated)
Weighted average number of ordinary shares outstanding during the year 49,507 49,507

(Rupees)
(Restated)
Earnings per share - basic and diluted 14.62 16.72

38 CASH GENERATED FROM OPERATIONS Note 2023 2022

(Rupees in ‘000)

Profit before taxation 1,130,417 1,330,938

Adjustment for non cash charges and other items:

- Depreciation on property, plant and equipment 4.1.4 180,088 169,893
- Depreciation on right-of-use asset 5.2 19,390 24,020
- Amortization of intangible assets 6.1.1 8,254 5,226
- Amortization of government grant 35 (68,886) (24,526)
- Provision for staff retirement benefits 21.1.5 8,481 7,867
- Other long-term employee benefits - net 22 (2,514) 717
- Gain on disposal of fixed assets 35 (15,012) (32,901)
- Share of profit from associate 7.2 (4,777) (18,626)
- Impairment loss on investment in associate - 71,580
- Finance costs 33 954,185 313,772
- Working capital changes 38.1 (283,340) (1,166,887)
1,926,286 681,073

Annual Report 2023 | 174

 38.1 Working capital changes Note 2023 2022
(Rupees in ‘000)

(Increase) / decrease in current assets

- Stores and spares (16,786) 3,993
- Stock-in-trade 102,228 (1,359,587)
- Trade debts (42,265) (1,317,758)
- Short-term loans and advances (90,179) (31,080)
- Short term deposits and payments (32,376) 4,808
- Other receivables - net (237,306) (16,139)
(316,684) (2,715,763)
(Decrease) / increase in current liabilities
- Trade and other payables 474,595 1,214,341
- Contract liabilities (441,251) 334,535
33,344 1,548,876

(283,340) (1,166,887)

39 CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise of the following items:

Cash and bank balances 15 161,341 255,814

Running finances from banks 26 (1,130,563) (1,210,770)
(969,222) (954,956)

40 FINANCIAL INSTRUMENTS

Financial risk management

The Board of Directors of the Company has the overall responsibility for the establishment and oversight of the
Company's risk management framework. The Board of Directors is also responsible for developing and monitoring
the Company's risk management policies. The Company has exposure to the following risks from its use of financial
instruments:

- Credit risk
- Liquidity risk
- Market risk

40.1 Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other
party to incur a financial loss, without taking into account the fair value of any collateral. Concentration of credit risk
arises when a number of counter parties are engaged in similar business activities or have similar economic features
that would cause their ability to meet contractual obligations to be similarly affected by changes in economics, political
or other conditions. Concentrations of credit risk indicate the relative sensitivity of the Company's performance to
developments affecting a particular industry.

Credit risk of the Company arises principally from the trade debts, loans and advances, trade deposits, bank balances
and other receivables. The carrying amount of financial assets represents the maximum credit exposure. To reduce
the exposure to credit risk the Company has developed a formal approval process whereby credit limits are applied
to its customers. The management continuously monitors the credit exposure towards the customers and makes
provision against those balances considered doubtful of recovery (and also obtains security / advance payments,
wherever considered necessary). Cash is held only with reputable banks with high quality credit worthiness.

175 | Pakistan Cables Limited

 The maximum exposure to credit risk at the reporting date is as follows:
2023 2022
(Rupees in ‘000)

Trade debts 4,146,579 4,104,314

Loan to employees 20,158 10,501
Deposits 51,215 19,339
Bank balances 160,937 255,509
Other receivables 55,306 56,182
4,434,195 4,445,845

40.1.1 The maximum exposure to credit risk at the reporting date by geographic region was as follows:
2023 2022
(Rupees in ‘000)

Domestic (Pakistan) 4,027,478 4,261,188

Export 406,717 184,657
4,434,195 4,445,845

40.1.2 The maximum exposure to credit risk for trade debts at the reporting date by type of customer is as follows:
2023 2022
(Rupees in ‘000)

Intermediaries 922,806 815,899

End-user customers 3,223,773 3,288,415
4,146,579 4,104,314

40.1.3 As at the year end, the Company's most significant customers included a distributor from whom Rs. 420.87 million was
due (2022: Rs. 362.43 million) and an end-user from whom Rs. 269.49 million was due (2022: Rs. 294.80 million).

40.1.4 Loans, advances and other receivables mentioned above include due from the employees of the Company, while the deposits
are held with utility companies, etc. All the financial assets of the Company are unsecured (except as mentioned in note 8).

40.1.5 Impairment losses and past due balances

The following table provides information about the exposure to credit risk and ECLs for trade receivables as at reporting date.
2023 2022
Gross Impairment Credit Gross Impairment Credit
Impaired Impaired
(Rupees in '000) (Rupees in '000)

Not past due 2,826,379 3 No 2,793,184 79 No

Past due 1-60 days 747,745 9 No 969,214 383 No
Past due 61 days -1 year 576,627 4,160 No 357,754 15,376 No
More than one year 47,964 47,964 Yes 37,347 37,347 Yes
4,198,715 52,136 4,157,499 53,185

Above balances are unsecured. None of the other financial assets are past due or impaired other than those which
have been provided. Movement of provision against trade debts is disclosed in note 11.2.

Annual Report 2023 | 176

 Loss rates are based on historical credit loss experience and are adjusted to reflect differences between economic
conditions during the period over which the historical data has been collected, current conditions and the Company’s
view of economic conditions over the expected lives of the receivables.

Based on the past experience, consideration of financial position, past track records and recoveries, the Company
believes that impairment on trade debts past have been appropriately accounted for in these financial statements.

40.1.6 Settlement risk

All transactions are settled / paid for upon delivery as per the advice of the management. The Company's policy is to
enter into financial instrument contract by internal guidelines such as approving counter parties and approving credits.

40.1.7 Bank balances

The Company maintain bank balances with banks having good credit rating. Currently the balances are held with
banks having long-term ratings of AAA Rs. 160.94 million (2022: Rs. 255.50 million).

40.2 Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due.
Liquidity risk arises because of the possibility that the Company could be required to pay its liabilities earlier than
expected or difficulty in raising funds to meet commitments associated with financial liabilities as they fall due. The
Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Company's reputation.

Following are the contractual maturities of undiscounted financial liabilities, including interest payments (based on
the remaining period to maturity): 2023
Contractual cash flows
Carrying Total contractual Six months Six to One to More than
amount cash flows or less twelve months two years two years
(Rupees in '000)
Non-derivative
Financial liabilities
Long-term financing including
mark up thereon 5,826,415 (9,756,166) (517,932) (544,195) (1,415,678) (7,278,361)
Trade and other payables 2,203,062 (2,203,062) (2,203,062) - - -
Lease liabilities 3,805 (4,320) (1,080) (1,080) (2,160) -
Short-term borrowings
including mark up thereon 4,082,166 (4,082,166) (4,082,166) - - -
12,115,448 (16,045,714) (6,804,240) (545,275) (1,417,838) (7,278,361)

2022
Contractual cash flows
Carrying Total contractual Six months Six to One to More than
amount cash flows or less twelve months two years two years
(Rupees in '000)
Non-derivative
Financial liabilities
Long-term financing including
mark up thereon 1,540,590 (1,770,065) (258,312) (214,896) (230,200) (1,066,657)
Trade and other payables 1,813,305 (1,813,305) (1,813,305) - - -
Lease liabilities 12,997 (15,112) (7,372) (1,260) (3,060) (3,420)
Short-term borrowings
including mark up thereon 5,005,055 (5,005,055) (5,005,055) - - -
8,371,947 (8,603,537) (7,084,044) (216,156) (233,260) (1,070,077)

177 | Pakistan Cables Limited

40.2.1 The contractual cash flows relating to the above financial liabilities have been determined on the basis of mark-up
rates effective as at June 30 (and includes both principal and interest payable thereon). The rates of mark-up have
been disclosed in note 20 and 26 to these financial statements.

40.3 Market risk

Market risk is the risk that the value of the financial instrument may fluctuate as a result of changes in market interest
rates or the market price due to a change in credit rating of the issuer or the instrument, change in market sentiments,
speculative activities, supply and demand of securities and liquidity in the market. The Company is exposed to currency
risk and interest rate risk only.

40.3.1 Currency risk

Foreign currency risk is the risk that the value of a financial asset or liability will fluctuate due to a change in foreign exchange
rates. It arises mainly where receivables and payables exist due to transactions entered into foreign currencies.

The Company is exposed to currency risk on bank balance and import of raw materials that are denominated in a
foreign currency. The Company’s exposure to foreign currency risk is as follows:

2023
PKR USD EUR GBP CNY
(in '000)

Trade debts 406,717 1,419 - - -

Bank balance 101,765 355 - - -
Creditors (559,405) (1,400) (302) (1) (1,548)
Exposure (50,923) 374 (302) (1) (1,548)

2022
PKR USD EUR GBP CNY
(in '000)

Trade Debts 105,833 515 - - -

Bank balance 54,663 266 - - -
Creditors (113,997) (132) (224) - (1,244)
Exposure 46,499 649 (224) - (1,244)

Above exposure is payable by the Company in Rupees at the rate on which these are settled by the Company.

Following are the significant exchange rates applied during the year:

Average rates Reporting date rate

2023 2022 2023 2022
(Rupees)

USD 248.00 178.00 287.10 206.00

EUR 260.44 200.40 314.27 215.75
CNY 35.65 27.71 39.98 30.93
GBP 299.22 236.36 365.40 249.92

Annual Report 2023 | 178

 Sensitivity analysis
A five percent strengthening / (weakening) of the Rupee against foreign currency rates at June 30, 2023 would have increased
/ (decreased) equity and statement of profit or loss by amounts shown below. This analysis assumes that all other variables,
in particular interest rates, remaining constant. The analysis was performed on the same basis for 2022.

Effect on Statement of
Profit or Loss
2023 2022
(Rupees in ‘000)
As at 30 June
Effect in USD 5,365 6,677
Effect in EUR (4,749) (2,422)
Effect in CNY (3,095) (1,923)
Effect in GBP (22) -

The sensitivity analysis prepared is not necessarily indicative of the effects on profit or loss for the year and assets /
liabilities of the Company.
40.3.2 Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Majority of the interest rate exposure arises from borrowings from the banks. At
the reporting date the interest rate profile of the Company’s interest-bearing financial instrument was as follows:

Interest rate Carrying amount

2023 2022 2023 2022
% (Rupees in ‘000)
Fixed rate instruments
Financial assets 5% - 8% 5% - 8% 12,981 5,036
Financial liabilities 1% - 3.5% 1% - 3.5% 1,717,894 959,777

Variable rate instruments

Financial liabilities 18.10% - 22.96% 10.83% - 15.17% 6,708,434 4,132,258
Financial assets 19.50% 12.25% 12,610 11,399

Fair value sensitivity analysis for fixed rate instruments

The Company does not account for fixed rate financial assets at fair value through profit or loss. Therefore, a change
in interest rates at the reporting date would not affect the statement of profit or loss and the equity of the Company.

Cash flow sensitivity analysis for variable rate instruments

A change of 100 basis points in interest rates at the reporting date would have increased / (decreased) profit as of
June 30, 2023 by Rs. 11.73 million (2022: Rs. 8.63 million). This analysis assumes that all other variables, in particular
foreign currency rates, remain constant.

The sensitivity analysis prepared is not necessarily indicative of the effects on profit for the year and assets / liabilities
of the Company.

179 | Pakistan Cables Limited

 Interest rate analysis of the financial instruments
A summary of the Company's interest rate gap position, analysed by the earlier of contractual repricing or maturity
date is as follows:

Carrying value
2023 2022
(Rupees in ‘000)
Financial assets
Bank balance 12,610 11,399
Financial liability
Borrowing from banks (6,708,434) (4,132,258)
Net balance exposed to interest rate risk (6,695,824) (4,120,859)

Loan to employees amounting to Rs. 20.16 million (2022: Rs. 10.50 million) as mentioned in note 8 have not been
included in the above table as it is not material. Interest rates on the above borrowings are disclosed in notes 20 and
26. Interest rate on bank balance are disclosed in note 15.1.

40.3.3 Price risk

Price risk is the risk that the fair value or future cash flows from a financial instrument will fluctuate due to changes
in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused
by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments
traded in the market. The Company has no exposure to price risk as its investments are measured at cost.

40.4 Reconciliation of movements of liabilities to cash flows arising from financing activities
2023
Other Short Long-term Lease Revenue Dividend Total
term financing liabilities reserve
borrowings including
including interest
interest accrued
accrued
(Rupees in '000)

Balance as at July 01, 2022 3,697,327 1,540,590 12,997 2,265,318 30,318 7,546,550
Changes from financing cash flows:
Repayment of long-term loans - (496,624) - - - (496,624)
Proceeds from long-term financing - 4,511,622 - - - 4,511,622
Lease rentals paid - - (8,390) - - (8,390)
Dividend paid - - - - (228,196) (228,196)
Changes in short term borrowings
relating to financing activities (816,641) - - - - (816,641)
Total changes from financing activities (816,641) 4,014,998 (8,390) - (228,196) 2,961,771

Other changes:
Dividend declared - - - - 231,257 231,257
Lease termination and reassessment - - (1,880) - - (1,880)
Amortisation of government grant - (68,886) - - - (68,886)
Finance costs 386,040 668,904 1,078 - - 1,056,022
Finance costs paid (370,139) (329,191) - - - (699,330)
Total loan related other changes 15,901 270,827 (802) - 231,257 517,183

Total equity related other changes - - - 353,192 - 353,192

Balance as at June 30, 2023 2,896,587 5,826,415 3,805 2,618,510 33,379 11,378,696

Annual Report 2023 | 180

 2022
Other Short Long term Lease Revenue Dividend Total
term financing liabilities reserve
borrowings including
including interest
interest accrued
accrued
(Rupees in '000)

Balance as at July 01, 2021 1,730,425 1,164,911 19,917 1,798,386 25,566 4,739,205
Changes from financing cash flows:
Repayment of long-term loans - (406,502) - - - (406,502)
Proceeds from long-term financing - 766,754 - - - 766,754
Lease rentals paid - - (11,228) - - (11,228)
Dividend paid - - - - (368,817) (368,817)
Changes in short term borrowings
relating to financing activities 1,962,641 - - - - 1,962,641
Total changes from financing activities 1,962,641 360,252 (11,228) - (368,817) 1,942,848

Other changes:
Lease termination and reassessment - - 1,947 - - 1,947
Dividend declared during the year - - - - 373,569 373,569
Amortisation of government grant - (24,526) - - - (24,526)
Finance costs 23,115 107,999 2,361 - - 133,475
Finance costs paid (18,854) (68,046) - - - (86,900)
Total loan related other changes 4,261 15,427 4,308 - 373,569 397,565

Total equity related other charges - - - 466,932 - 466,932

3,697,327 1,540,590 12,997 2,265,318 30,318 7,546,550

40.5 Capital risk management

The objective of the Company when managing capital is to safeguard its ability to continue as a going concern so that
it can continue to provide returns for shareholders and benefits for other stakeholders; and to maintain a strong capital
base to support the sustained development of its businesses.

The Company manages its capital structure by monitoring return on net assets and makes adjustments to it in the
light of changes in economic conditions. In order to maintain or adjust the capital structure, the Company may adjust
the amount of dividend to the shareholders or issue bonus / new shares.

The Company is not subject to externally imposed capital requirements.

40.6 Fair value of financial instruments

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.

Underlying the definition of fair value is the presumption that the Company is a going concern without any intention
or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.

The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the
quoted market prices at the close of trading on the period end date. The quoted market prices used for financial assets
held by the Company is current bid price.

181 | Pakistan Cables Limited

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:

- Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date (level 1).

- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly (level 2).

- Unobservable inputs for the asset or liability (level 3).

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including
their levels in the fair value hierarchy.

2023
Carrying amount Fair value
Assets at Fair value Other Level 1 Level 2 Level 3
amortised financial
Cost liabilities
(Rupees in '000)
Financial assets not
measured at fair value
Trade debts 4,146,579 - - - - -
Loan to employees 20,158 - - - - -
Deposits 51,215 - - - - -
Other receivables 359,884 - - - - -
Cash and bank balances 161,341 - - - - -

Financial assets
measured at fair value
Other receivables - - - - - -

Financial liabilities not

measured at fair value
Trade and other payables - - 2,203,062 - - -
Borrowings - - 8,949,943 - - -
Lease liabilities - - 3,805 - - -
Accrued mark-up - - 318,889 - - -

Financial liabilities
measured at fair value
Trade and other payable - - - - - -
4,739,177 - 11,475,699 - - -

Annual Report 2023 | 182

 2022
Carrying amount Fair value
Assets at Fair value Other Level 1 Level 2 Level 3
amortised financial
Cost liabilities
(Rupees in '000)
Financial assets not
measured at fair value
Trade debts 4,104,314 - - - - -
Loan to employees 10,501 - - - - -
Deposits 19,339 - - - - -
Other receivables 139,784 - - - - -
Cash and bank balances 255,814 - - - - -

Financial assets
measured at fair value
Other receivables - 5,680 - - 5,680 -

Financial liabilities not

measured at fair value
Trade and other payables - - 1,813,149 - - -
Borrowings - - 6,144,126 - - -
Lease liabilities - - 12,997 - - -
Accrued mark-up - - 118,472 - - -

Financial liabilities
measured at fair value
Trade and other payable - 156 - - 156 -
4,529,752 5,836 8,088,744 - 5,836 -

40.6.1 The Company has not disclosed the fair values of the financial assets and financial liabilities measured at amortised
cost, as these are either short term in nature or repriced, periodically. Therefore, their carrying amounts are reasonable
approximation of their fair values.

183 | Pakistan Cables Limited

41 MEASUREMENT OF FAIR VALUES

Non financial assets Date of Valuation approach Inter-relationship between

measured at fair value valuation and inputs used significant unobservable input
and fair value measurement
Revalued Property, plant
and equipment

- Land and Building June 30, 2022 The valuation model of land and building The fair value are subject to
is based on market approach. In change owing to changes in input.
determining the valuation for land and However, management does not
building the valuer refers to current expect there to be a material
market conditions, structure, coverage sensitivity to the fair value arising
area and numerous independent market from the non-observable inputs.
inquiries from local estate agents /
realtors in the vicinity to establish the
rates per acre of land and rates per
square foot of building / structure to
arrive at the market value. The fair
valuation of land and building are
considered to represent a level 3 valuation
based on significant non-observable
inputs being the location and condition
of the assets.

Details of the value of an investment in an associated Company are disclosed in note 7.

42 OPERATING SEGMENTS
These financial statements have been prepared on the basis of single reportable segment.

42.1 Revenue from cables & wires represents 98.5% (2022: 98%) of the total revenue of the Company.

42.2 Sales represents local sales of Rs. 20,736.65 million (2022: Rs. 20,701.13 million) and export sales of Rs. 916.30 million
(2022: Rs. 466.53 million).

42.3 All non-current assets of the Company at June 30, 2023 are located in Pakistan. The Company does not have any
customer having sales of 10% or more during the year ended June 30, 2023.

Annual Report 2023 | 184

 43 REMUNERATION OF THE CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES

43.1 Remuneration of the chief executive, directors and executives

The aggregate amount charged in these financial statements for remuneration including all benefits to the chief
executive and executives of the Company were as follows:

2023 2022
Chief Executive Executives Chief Executive Executives
Executive Director Executive Director

(Rupees in '000)

Managerial remuneration
(including performance bonus) 34,710 22,000 236,706 33,590 26,500 253,259
House rent, utilities and others 14,855 10,537 87,665 12,325 8,139 81,085
Retirement benefits 1,734 - 9,995 1,724 - 8,838
51,299 32,537 334,366 47,639 34,639 343,182

Number of persons 1 1 44 1 1 41

Executive means an employee of a listed Company other than the chief executive and directors whose basic salary
exceeds Rs. 1.2 million in a financial year. The chief executive and certain executives of the Company are provided with
free use of cars. The chief executive and executives are also provided with medical facilities in accordance with their
entitlements.

43.2 In addition to the above, aggregate amount charged in these financial statements in respect of directors' fee to
Non-Executive Directors amounted to Rs. 5.17 million (2022: Directors' fee Rs. 4.43 million).

44 TRANSACTIONS AND BALANCES WITH RELATED PARTIES

Parties which are related to the Company in pursuit of IAS 24 'Related Party Disclosures' including associates, staff retirement
benefit plans and key management personnel are considered for disclosure of related party transactions. Contributions to
defined contribution plan (provident fund) are made as per the terms of employment and contribution to /charge for the
defined benefit plan (pension scheme) are in accordance with the actuarial advice. Remuneration of key management
personnel are in accordance with their terms of employment. Share of profit of the associated Company and dividend from
them are as per the profit and dividend declared by them. Other transactions are at agreed terms.

Details of transactions and balances with related parties, other than those which have been specifically disclosed elsewhere
in these financial statements are as follows:

185 | Pakistan Cables Limited

Transactions and balances with related parties

Name of the Relationship Nature of transactions 2023 2022

related party shareholding and balances (Rupees in ‘000)

Intermark (Private) Associate Sale of goods 1,629,836 1,809,489

Limited

International Associate (0.48%) Sale of goods 2,667 3,056

Industries Limited Sharing of expenses 10,386 1,414
Purchase of goods, services and materials 46,350 5,402
Dividend paid 39,601 63,971
Dividend received 7,286 5,385
Proportionate share of changes in equity 19,963 21,712

IIL Construction Solutions Associate Purchase of goods, services and materials 405,379 381,226
(Private) Limited

International Steels Associate Sale of goods 9,242 7,380

Limited Purchase of goods, services and materials 53,020 61,705
Sharing of expenses 2,411 750

Amir Sultan Chinoy Common directorship Donation 10,000 13,500

Foundation

National Foods Limited Common directorship Sale of goods - 6,844

National Management Common directorship Sale of goods - 12,447

Foundation

Network of Organizations Common directorship Corporate social responsibility (CSR) 313 1,000
Working with Persons
with Disabilities,
Pakistan (NOWPDP)

Pakistan Society for Common directorship Purchase of goods, services and materials 464 181
Training and
Development

Shirazi Investments Common directorship Dividend paid 9,750 15,750

(Private) Limited

State Life Insurance Common directorship Office Rent 140 94

Corp. of Pakistan Dividend paid 16,324 26,369

Atlas Insurance Limited Common directorship Insurance premium 1,289 -

Margin against guarantee 23,684 -

Fauji Fertilizer Company Common directorship Sale of goods 49,564 28,524

Liquidated damages for late deliveries - 53

Cherat Packaging Common directorship Sale of goods - 20,308

Limited

Jubilee Life Insurance Common directorship Insurance premium 9,039 8,083

Company Limited Insurance claim received 2,244 5,928

Pakistan Cables Limited Staff retirement Net charge in respect of Staff

- Staff Provident Fund benefit plans retirement benefit plan 26,370 21,918
Retirement benefit plans payable 4,981 3,583

Annual Report 2023 | 186

 Name of the Relationship Nature of transactions 2023 2022
related party shareholding and balances (Rupees in ‘000)

Pakistan Cables Limited Staff retirement Net charge in respect of Staff

- Staff Pension Fund benefit plans retirement benefit plans 17,206 7,260
Retirement benefit plans receivable 30,989 48,195

Board of Directors Key Management Dividends paid 68,258 66,959

(executive and Personnel Directors' fees 5,170 4,425
non-executive) Directors' fee payable - 450
and Key personnel
management

Workers' Profit Staff benefit plan Net charge in respect of Staff benefit plan 61,887 71,618
Participation Fund Staff benefit plan payable 61,887 71,618

Remuneration of key management personnel of are disclosed in note 43.1 and 43.2.

45 PLANT CAPACITY AND ACTUAL PRODUCTION

The production capacity of the plant cannot be determined as this depends on the relative proportions of the various types and sizes
of cables and wires and type of aluminium sections produced.

46 NUMBER OF EMPLOYEES
The total number of employees as at year end were 549 (2022: 503) and average number of employees were 527 (2022: 491).

The total number of factory employees as at year end were 432 (2022: 393) and average number of factory employees were 413
(2022: 381).

47 NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE

The Board of Directors in their meeting held on August 25, 2023 have for the year ended June 30, 2023, proposed final cash dividend of Rs.
Nil per share (2022: Rs. 6.50 per share) amounting to Rs. Nil (2022: Rs. 231.26 million) and appropriation to general reserves amounting
to Rs. 643 million (2022: Rs. 400 million) for approval by the members of the Company in the Annual General Meeting to be held on
September 26, 2023. The financial statements for the year ended June 30, 2023 do not include the effect of the proposed cash dividend,
bonus issue and appropriation to general reserves, which will be recognised in the financial statements for the year ending June 30, 2024.

48 DATE OF AUTHORISATION FOR ISSUE

These financial statements were authorised for issue on August 25, 2023 by the Board of Directors of the Company.

Chief Executive Officer Director Chief Financial Officer

187 | Pakistan Cables Limited

Annual Report 2023 | 188
ROOT FOR
EXCELLENCE
SHAREHOLDERS’ INFORMATION
 Investor Relations
REGISTERED OFFICE
B-21 Pakistan Cables Road
Sindh Industrial Trading Estates
Karachi -75700
P.O Box 5050
Tel: +92 -21- 32561110-75
Fax: +92-21-32564614
Email: [email protected]

SHARE REGISTRAR
CDC Share Registrar Services Limited
CDC House, Main Shahrah-e-Faisal, Karachi.
Tel: 021 111-111-500
Email: [email protected]

Share transfers, dividend payment and all other investor related matters are attended to and processed by the
Company’s Share Registrar.

INVESTOR RELATIONS CONTACT

Mr. Mirza Faisal Baig
Email: [email protected]
Mobil No. +92-3008503969
Fax: +92-21-32462111

FINANCIAL CALENDAR
The Company follows the period of July 1 to June 30 as the Financial Year.
For the Financial Year 2023-2024, financial results will be announced as per the following tentative schedule:

1st Quarter ending September 30, 2023 Last week of October 2023
2nd Quarter ending December 31, 2023 Last week of January 2023
3rd Quarter ending March 31, 2024 Last week of April 2024
4th Quarter ending June 30, 2024 Second week of August 2024

LISTING
Ordinary shares of the Company are listed on the Pakistan Stock Exchange.

STOCK CODE
The stock code for trading in ordinary shares of the Company at the Pakistan Stock Exchange is PCAL.

191 | Pakistan Cables Limited

STATUTORY COMPLIANCE
The Company is in compliance with applicable provisions of the Companies Act 2017, as replaced by the Companies
Ordinance 1984, as well as circulars/mandates issued thereunder, the Regulations of the Securities and Exchange
Commission of Pakistan, Securities Act, 2016 and the Listing Rules of the Pakistan Stock Exchange.

ANNUAL GENERAL MEETING

The Annual General Meeting of the Company will be held on September 26, 2023 at 13:00 hrs. at Aquarius Hall, Beach
Luxury Hotel, M. T. Khan Road, Lalazar, Karachi 74000, as well as through Video Conferencing facility.

Any shareholder may appoint another shareholder as his/her proxy to attend and vote at the meeting on his/her behalf.
Proxies must be filed with the Company at least 48 hours prior to the meeting.

CDC shareholders or their proxies are requested to bring copies of their Computerized National Identity Card along
with the participants’ ID number and their account number at the meeting in order to facilitate their identification
procedure.

BOOK CLOSURE
Share Transfer Books of the Company will remain closed from September 20, 2023 to September 26, 2023 (both
days inclusive).

DIVIDEND AND BONUS SHARES

The Board of Directors have recommended NIL final cash dividend (2022: 65%). Furthermore, the Directors have
also recommended NIL final bonus shares (2022: 15%). Moreover, the 1st interim bonus shares in the proportion
of 10 shares for every 100 shares held (10%) and 2nd interim bonus shares in the proportion of 10 shares for
every 100 shares held (10%) were issued.

DIVIDEND TRANSMISSION
In accordance with the requirements of section 242 of the Companies Act 2017, cash dividends shall only be paid
through electronic mode directly into the bank account designated by the shareholders whose names appear in
the Register of Shareholders on the date of book closure.

WITHHOLDING OF INCOME TAX AND ZAKAT ON DIVIDEND

In accordance with the provisions of the Income Tax Ordinance 2001, the Company is required to deduct income
tax at source on dividend payments in accordance with prevailing rates.

The Company is also required to deduct Zakat at source on dividend payments in accordance with prevailing
rates unless appropriate undertakings/declarations are provided.

WEB PRESENCE
Updated information regarding the Company can be accessed at its website www.pakistancables.com. The
website contains the latest financial information of the Company together with the Company’s profile.

Annual Report 2023 | 192

 Pattern of Shareholding
As at June 30, 2023
Number of Shareholding Total Number of Shareholding Total
Shareholders From To Shares Held Shareholders From To Shares Held

894 1 100 13,172 1 185,001 190,000 185,875

595 101 500 145,560 - 190,001 205,000 -
296 501 1,000 213,930 1 205,001 210,000 208,828
548 1,001 5,000 1,167,246 - 210,001 260,000 -
118 5,001 10,000 820,421 1 260,001 265,000 260,731
40 10,001 15,000 487,808 - 265,001 350,000 -
31 15,001 20,000 544,480 1 350,001 355,000 350,901
12 20,001 25,000 264,286 - 355,001 415,000 -
7 25,001 30,000 189,349 1 415,001 420,000 417,450
10 30,001 35,000 330,385 - 420,001 845,000 -
5 35,001 40,000 194,011 1 845,001 850,000 848,815
1 40,001 45,000 41,745 - 850,001 960,000 -
2 45,001 50,000 95,966 1 960,001 965,000 960,135
1 50,001 55,000 51,829 - 965,001 1,000,000 -
3 55,001 60,000 168,634 1 1,000,001 1,005,000 1,001,876
- 60,001 65,000 - - 1,005,001 1,045,000 -
2 65,001 70,000 136,367 1 1,045,001 1,050,000 1,048,077
1 70,001 75,000 70,092 - 1,050,001 1,405,000 -
1 75,001 80,000 76,472 1 1,405,001 1,410,000 1,405,415
1 80,001 85,000 81,789 - 1,410,001 2,000,000 -
- 85,001 90,000 - 1 2,000,001 2,005,000 2,000,812
1 90,001 95,000 94,853 - 2,005,001 2,085,000 -
1 95,001 100,000 99,558 1 2,085,001 2,090,000 2,087,250
- 100,001 105,000 - - 2,090,001 2,500,000 -
1 105,001 110,000 108,004 1 2,500,001 2,505,000 2,502,792
- 110,001 115,000 - - 2,505,001 2,930,000 -
3 115,001 120,000 351,383 1 2,930,001 2,935,000 2,934,022
2 120,001 125,000 245,999 - 2,935,001 3,490,000 -
2 125,001 130,000 255,943 1 3,490,001 3,495,000 3,494,525
1 130,001 135,000 133,771 - 3,495,001 5,795,000 -
1 135,001 140,000 136,367 1 5,795,001 5,800,000 5,798,214
1 140,001 145,000 141,392 - 5,800,001 8,475,000 -
- 145,001 150,000 - 1 8,475,001 8,480,000 8,477,671
1 150,001 155,000 153,544 - 8,480,001 8,535,000 -
- 155,001 170,000 - 1 8,535,001 8,540,000 8,535,062
1 170,001 175,000 173,937 - 8,540,001 49,506,744 -
- 175,001 185,000 - 2,601 49,506,744

193 | Pakistan Cables Limited

Categories of Shareholders
As at June 30, 2023
No. of No. of Percentage
Shareholders Shares
Associated Companies, Undertakings and Related Parties 2
INTERNATIONAL INDUSTRIES LIMITED 8,477,671 17.12
SHIRAZI INVESTMENTS (PVT) LIMITED 2,087,250 4.22

Mutual Funds 17
CDC - TRUSTEE AL-AMEEN SHARIAH STOCK FUND 350,901 0.71
CDC - TRUSTEE UBL STOCK ADVANTAGE FUND 260,731 0.53
CDC - TRUSTEE ABL STOCK FUND 133,771 0.27
CDC-TRUSTEE AL-AMEEN ISLAMIC RET. SAV. FUND-EQUITY SUB FUND 108,004 0.22
CDC - TRUSTEE UBL RETIREMENT SAVINGS FUND - EQUITY SUB FUND 81,789 0.17
MCBFSL - TRUSTEE ABL ISLAMIC STOCK FUND 76,472 0.15
DCCL - TRUSTEE AKD ISLAMIC STOCK FUND 39,105 0.08
CDC - TRUSTEE AL-AMEEN ISLAMIC ASSET ALLOCATION FUND 34,103 0.07
CDC - TRUSTEE NIT-EQUITY MARKET OPPORTUNITY FUND 20,176 0.04
CDC - TRUSTEE UBL ASSET ALLOCATION FUND 15,411 0.03
CDC - TRUSTEE NIT ISLAMIC EQUITY FUND 8,303 0.02
CDC - TRUSTEE AWT ISLAMIC STOCK FUND 5,500 0.01
CDC - TRUSTEE AWT STOCK FUND 5,500 0.01
CDC - TRUSTEE AKD OPPORTUNITY FUND 2,651 0.01
CDC - TRUSTEE ABL ISLAMIC PENSION FUND - EQUITY SUB FUND 1,089 0.00
CDC - TRUSTEE AL AMEEN ISLAMIC DEDICATED EQUITY FUND 544 0.00
CDC - TRUSTEE GOLDEN ARROW STOCK FUND 33 0.00

Directors, Chief Executive Officer, their Spouses

and Minor Children 10 14,613,720 29.52

Executives 8 22,124 0.04

Public Sector Companies and Corporations - - -

Banks, Development Finance Institutions, Non-Banking Finance

Companies, Insurance Companies, Takaful, Modarabas and
and Pension Funds 11 309,122 0.62

Shareholders holding five Percent or more voting

rights in the Company 3 8,931,339 18.04

General Public (Local) 2,385 11,460,304 23.15

General Public (Foreigner) 132 255,269 0.52

Others 33 2,205,862 4.46

Total 2,601 49,506,744 100.00

Annual Report 2023 | 194

 Highlights of the
Annual General Meeting 2022
Issues/Queries/Comments Responses Implementation
The shareholders expressed concerns Company builds awareness through The Company’s product verification
with regards to counterfeit products in various different communication facility continued to be an integral
the market and inquired what channels among the strong network feature enabling consumers to
strategies have been taken by the of dealers and electricians. Moreover, verify their purchase products for
Company to mitigate them. there are securities stickers on authenticity. The product
packaging of the wiring products, which verification facility is also available
allow customers to verify the product on the Loyalty Club App, a mobile
through various mediums including app launched for Loyalty Club
SMS, WhatsApp and the internet. members.

The shareholders inquired whether the While the exports are sequentially The Company penetrated into new
Company offers a competitive growing each year, the market is export markets and enhanced the
advantage with regards to exports. highly competitive. Essentially the global presence by adding 5 new
Company competes on efficiency and countries.
conversion cost. With electricity
prices increasing and inability to get
utilities on stable basis it becomes
difficult to compete with Chinese,
Turkish and Indian manufacturers.
However, the Company does offer
flexibility which sets it apart from
other manufacturers.

The shareholder inquired in relation The focus would primarily be on the The company continues to focus on
to the expansion taking place at the existing products. The expansion introducing new innovative products
Nooriabad factory, whether the would serve to enhance capacity and and has recently introduced products
Company will be introducing new efficiency. such as solar DC cables, fire
products. resistant cables, CAT 6 LAN internet
cables and a new range of switches
and sockets (wiring accessories).

The shareholders inquired how the Higher input costs were successfully None required.
Company managed to get higher passed on to customers. Additionally,
margins despite the raise in there was higher volume as a result
commodity prices. of operational efficiencies.

The shareholders inquired whether There was a partial offset. None required.
the fall in copper prices offset the rise
in US dollar versus the rupee.

195 | Pakistan Cables Limited

Notice Of 70th
Annual General Meeting
NOTICE IS HEREBY GIVEN THAT THE 70th Annual General Meeting (the “AGM”) of the shareholders of Pakistan Cables
Limited (the “Company”) will be held on Tuesday, 26th day of September 2023 at 13:00 hrs at Aquarius Hall, Beach
Luxury Hotel, M. T. Khan Road, Lalazar, Karachi 74000, as well as through Video Conferencing facility, to transact the
following business:

1. ORDINARY BUSINESS
i. To confirm the Minutes of the Extraordinary General Meeting held on May 4, 2023.

ii. To receive, consider and adopt the Annual Audited Financial Statements of the Company for the year ended
June 30, 2023 together with the Reports of the Directors and Auditors thereon.

In accordance with Section 223(7) of the Companies Act, 2017 and S.R.O No.389(I)/2023 dated March 21, 2023,
the financial statements of the Company have been uploaded on the Company’s website which can be
downloaded from the following link and QR enabled code:

https://www.pakistancables.com/media/21363/pcl-final-ar-2023.pdf

iii. To appoint Auditors for the ensuing year and to fix their remuneration for the year ending June 30, 2024. The
present auditors, M/s. A. F. Ferguson & Co., Chartered Accountants, have retired and being eligible, have
offered themselves for re-appointment. The Board of Directors recommends, based on the recommendation
of the Board Audit Committee, the appointment of M/s. A. F. Ferguson & Co., Chartered Accountants as
auditors for the ensuing year.

iv. To ratify 1st interim bonus shares issued @ 10% (10 bonus shares for every 100 shares held) and the 2nd
Interim bonus shares issued @ 10% (10 bonus shares for every 100 shares held) for the year ended June 30,
2023 previously announced and issued.

2. SPECIAL BUSINESS
v. To consider, and if thought fit, pass with or without modification, the following resolution as special resolution:

“RESOLVED THAT the authorized share capital of the Company be and is hereby increased from Rs. 500,000,000
(five hundred million) divided into 50,000,000 (fifty million) shares of Rs. 10 each to Rs.1,000,000,000 (one billion)
divided into 100,000,000 (one hundred million) shares of Rs. 10 each.

FURTHER RESOLVED THAT Clause 5 of the Memorandum of Association of the Company be and is hereby
substituted by the following new clause:

5. The capital of the Company is Rs.1,000,000,000 (one billion) divided into 100,000,000 (one hundred million)
shares of Rs. 10 each but is capable of being increased or reduced in accordance with the Company’s
regulations and legislative provisions for the time being in force in that behalf.

Annual Report 2023 | 196

 FURTHER RESOLVED THAT the ordinary shares when issued shall carry equal voting rights and rank pari passu with the
existing ordinary shares of the Company in all respect / matters in conformity with the provisions of the Companies Act, 2017.”

FURTHER RESOLVED THAT the Chief Executive Officer and Company Secretary be and are hereby authorized
singly to do all acts, deeds and things, take any or all necessary actions to complete all legal formalities and to
file requisite documents with the Registrar to effectuate and implement the aforesaid resolutions.”

vi. To consider, and if thought fit, to pass with or without modification, the following resolution as a Special
Resolution, to substitute the Article 125 of the Articles of Association of the Company:

RESOLVED THAT pursuant to Section 38 and all other applicable provisions of the Companies Act, 2017, Article
125 of the existing Articles of Association of the Company be and is hereby substituted to read as follows:

125. The Board of Directors may resolve that it is desirable to capitalize any part of the amount for the time
being standing to the credit of any of the Company’s reserve accounts or to the credit of the profit and loss
account or otherwise available for distribution, and accordingly that such sum be set free for distribution
amongst the Members who would be entitled thereto if distributed by way of dividend and in the same
proportions on condition that the same be not paid in cash but be applied either in or towards paying up
any amounts for the time being unpaid on any shares held by such Members respectively or paying up in
full un-issued shares or debentures of the Company to be allotted and distributed, credited as fully paid
up to and amongst such Members in the proportion aforesaid, or partly in one way and partly in the other,
and the Directors shall give effect to such resolution.

FURTHER RESOLVED THAT the Chief Executive Officer and Company Secretary be and are hereby authorized
singly to do all acts, deeds and things, take any or all necessary actions to complete all legal formalities and to
file requisite documents with the Registrar to effectuate and implement the aforesaid resolutions.”

FURTHER RESOLVED THAT the aforesaid alteration in the Articles of Association of the Company shall be subject
to any amendment, modification, addition or deletion as may be required, and such amendment, modification,
addition or deletion shall not require fresh approval of members.

3. ANY OTHER BUSINESS

To transact any other ordinary business which may legally be transacted at an Annual General Meeting, with the
permission of the Chair.

By Order of the Board

Natasha Mohammad
KARACHI: August 25, 2023 Head of Legal Affairs and Company Secretary

197 | Pakistan Cables Limited

NOTES:

1. Participation in the Annual General Meeting proceeding via the video conference facility:
Shareholders interested in attending the Annual General Meeting (AGM) virtually are requested to ensure
their registration by sending their particulars at the designated email address [email protected]
or through WhatsApp number +92-3008503969 mentioning their name, folio number, email address by the
close of business on 24 September, 2023. The log-in credentials and Zoom link to participate in the AGM
would be provided to the registered shareholders via response email. Pakistan Cables Limited (the “Company”)
intends, and undertakes, to hold its AGM in compliance with all applicable laws while ensuring the safety of
its Shareholders, Employees, Directors and the Public at large and encourages shareholders to participate
virtually to avoid the risks associated with large gatherings.

S. # Company Name Folio Number / Name of the CNIC # Mobile # E-mail Address
CDC Account # Shareholder

Pakistan
Cables Limited

The details of video conferencing facility will be sent to the members at the email address provided by them.
The login facility will be opened at 12:30 hrs on AGM’s day enabling the participants to join the proceedings
after identification and verification process before joining the meeting, which will start at 13:00 hrs. sharp.

2. Book Closure:
The Shares Transfer Books of the Company will remain closed from September 20, 2023 to September 26,
2023 (both days inclusive). No transfers will be accepted for registration during this period. Transfers in good
order, received at the office of the Company’s Share Registrar namely CDC Share Registrar Services Limited,
CDC House, 99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400, by the close of business on
September 19, 2023 will be treated in time for the purpose of attendance of the AGM and as applicable.

3. Proxies:
A Member entitled to attend and vote at the AGM is entitled to appoint a proxy to attend and vote instead of him.
A proxy must be a Member of the Company. An instrument of proxy applicable for the AGM is being provided with
this notice. Proxy forms may also be downloaded from the Company’s Website: www.pakistancables.com.

The instrument appointing the proxy and the Power of Attorney or other Authority under which it is signed, or a
Notarially Certified copy thereof, must be lodged either at the Company’s registered Office i.e. B-21, S.I.T.E., Karachi
or at [email protected] not later than 48 hours before the time of the Meeting.

4. CDC Account Holders will have to follow the guidelines below as laid down in Circular 1 dated January 26,
2000 issued by Securities and Exchange Commission of Pakistan:

A. For attending the meeting:

(i) In case of individual, the Account holder or Sub-Account holder whose securities and their registration
details are up-loaded as per the CDC Regulations, shall authenticate his/her identity by showing
his/her original Computerized National Identity Card (“CNIC”) or original Passport at the time of
attending the AGM.

Annual Report 2023 | 198

 (ii) In case of corporate entity, the Board of Directors’ Resolution / Power of Attorney with specimen
signature and attested copy of valid CNIC of the nominee shall be produced (unless it has been
provided earlier) at the time of the Meeting.

B. For Appointing Proxies:

(i) In case of individual, the Account holder or Sub-Account holder whose Securities and their registration
details are up-loaded as per the CDC Regulations, shall submit the proxy form as per above requirement.

(ii) The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall
be mentioned on the form.

(iii) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished
with the proxy form.

(iv) The proxy shall produce his/her original CNIC or original Passport at the time of the AGM.

(v) In case of corporate entity, the Board of Directors’ Resolution / Power of Attorney with specimen
signature and an attested copy of valid CNIC of the person nominated to represent and vote on behalf
of the corporate entity, shall be submitted along with proxy form to the Company.

5. Postal Ballot & E – Voting:

The members are hereby notified that pursuant to Companies (Postal Ballot) Regulations, 2018 (the
“Regulations”), amended through Notification dated December 05, 2022, issued by the Securities and Exchange
Commission of Pakistan (“SECP”), SECP has directed all the listed companies to provide the right to vote
through electronic voting facility and voting by post to the members on all businesses classified as special
business.

Accordingly, members of the Company will be allowed to exercise their right to vote through electronic voting
facility or voting by post for the special business in its forthcoming Annual General Meeting to be held on
Tuesday, September 26, 2023 at 13:00 hrs. in accordance with the requirements and subject to the conditions
contained in the aforesaid Regulations.

For the convenience of the Members, ballot paper is annexed to this notice and the same is also available on
the Company’s website at www.pakistancables.com for download.

A. Procedure for E – Voting:

(i) Details of the e-voting facility will be shared through an e-mail with those members of the Company who
have their valid CNIC numbers, cell numbers, and e-mail addresses available in the register of members
of the Company by the close of business of September 19, 2023.

(ii) The web address, login details, will be communicated to members via email. The security codes will be
communicated to members through SMS from web portal of CDC Share Registrar Services Limited (being
the e-voting service provider).

(iii) Identity of the Members intending to cast vote through e-voting shall be authenticated through electronic
signature or authentication for login.

199 | Pakistan Cables Limited

 (iv) E-voting lines will start from September 21, 2023, 09:00 a.m. and shall close on September 25, 2023 at
5:00 p.m. Members can cast their votes any time in this period. Once the vote on a resolution is cast by a
Member, he / she shall not be allowed to change it subsequently.

B. Procedure for Voting Through Postal Ballot:

The members shall ensure that duly filled and signed ballot paper along with copy of Computerized National
Identity Card (CNIC) should reach the Chairman of the meeting through post on the Company’s registered
address, B-21, S.I.T.E., Karachi or email at [email protected] one day before the Annual
General Meeting on September 25, 2023, during working hours. The signature on the ballot paper shall
match with the signature on CNIC.

6. Submission of Valid CNIC / NTN Copy (Mandatory):

The Members who have not yet submitted photocopy of their valid CNIC to the Company / Share Registrar, are
once again reminded to send the same at the earliest directly to Company’s Share Registrar, CDC Share Registrar
Services Limited, CDC House, 99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400. Corporate entities
are requested to provide their National Tax Number (NTN). Please give the folio number with the copy of CNIC /
NTN details. Reference is also made to the Securities and Exchange Commission of Pakistan (SECP) Notifications
SRO 779 (I) dated August 18, 2011, and SRO 831 (I) 2012 dated July 05, 2012, which mandates that the dividend
warrants should bear CNIC number of the registered member or the authorized person, except in case of minor(s)
and corporate members. In case of non-receipt of the copy of a valid CNIC, the Company will not transmit the
dividends of such shareholders to comply with the said SROs of SECP.

7. Change of Address & Zakat Declaration (CZ-50):

Shareholders are requested to notify their change of address, Zakat declaration and Tax exemption certificate (if
any) immediately to the Company’s Share Registrar, CDC Share Registrar Services Limited, CDC House, 99-B,
Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400. Please further note that Zakat will be deducted from
dividends at source at the rate of 2.5% of the paid-up value of the shares under Zakat and Ushr laws and will be
deposited within the prescribed period with the relevant authority. In the event that you would like to claim an
exemption, please submit, with your broker/CDC/the Company’s Share Registrar, your Zakat Declaration form CZ
-50 under the Zakat and Ushr Ordinance 1980 and the Zakat (Deduction and Refund) Rules 1981.

8. Electronic Transmission of Annual Report:

The Securities and Exchange Commission of Pakistan has allowed listed companies, through S.R.O No.389(I)/2023
dated March 21, 2023, to circulate the Annual Balance Sheet and Profit and Loss Account, Auditor’s Report and
Directors Report etc. (the “Annual Audited Financial Statements”) to the Company’s Shareholders through QR
enabled code and weblink. However, any shareholder may request the Company Secretary in writing to provide a
printed copy of the Annual Report at their registered address, free of cost. Those members who want to avail this
facility are requested to submit the duly filled request form to our Company’s Share Registrar CDC Share Registrar
Services Limited, CDC House, 99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400.

9. Electronic Transmission of Dividend:

In accordance with the requirements of section 242 of the Companies Act 2017, cash dividends shall only be paid through
electronic mode directly into the bank account designated by the entitled shareholders. Shareholders are requested to
provide their folio number, name, bank account details comprising of bank name, branch name, branch code, account
number, title of account and IBAN, which they designate for crediting of their dividend. A standard form has also been placed
on the Company’s website - https://www.pakistancables.com/media/21208/update-of-iban-no-for-e-dividend-english.pdf.
Please ensure that such details are provided to the Company’s Share Registrar CDC Share Registrar Services Limited, CDC
House, 99-B, Block B, S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400 and/or your broker/participant/CDC Investor
account services, failing which the Company will be unable to process your dividend payment.

Annual Report 2023 | 200

 10. Conversion of Physical Shares into Book-Entry From:
The Securities and Exchange Commission of Pakistan (SECP) through its letter No. CSD/ED/Misc/2016- 639-640
dated March 26, 2021 has advised the listed companies to adhere with the provisions of section 72 of the Companies
Act, 2017 by replacing shares issued by them in Physical Form with the shares to be issued in the Book-Entry
Form. The Company, being a listed company is also required to comply with aforesaid provisions of Act. The
shareholders of Pakistan Cables Limited having physical folios/share certificates are requested to convert their
shares from physical form into Book Entry Form as soon as possible. The shareholders may contact their Broker,
a PSX Member, CDC Participant or CDC Investor Account Service Provider for assistance in opening a CDS Account
and subsequent induction of the physical shares into Book Entry Form.

It would facilitate the shareholders in many ways including safe custody of shares, no loss of shares, avoidance
of formalities required for the issuance of duplicate shares and readily available for sale and purchase in open
market at better rates. The shareholders of Company may contact the Share Registrar and Transfer Agent of the
Company, namely CDC Share Registrar Services Limited, CDC House, 99-B, Block B, S.M.C.H.S., Main
Shahra-e-Faisal, Karachi-74400 for the conversion of physical shares into Book-Entry Form.

STATEMENT UNDER SECTION 134(3) OF THE COMPANIES ACT 2017

This statement sets out the material facts concerning the Special Business to be transacted at the AGM of the Company
to be held on September 26, 2023. The Directors in their meeting held on August 25, 2023 have recommended to the
shareholders to pass following special resolutions.

AGENDA ITEM 5 - Increase in Authorized Capital to be passed as a Special Resolution.

The allocation of bonus shares during the year 2022-23 has led to almost exhausting the authorized share capital as outlined
in the Company’s Memorandum of Association of the Company. In order to maintain flexibility and facilitate further issuance
of bonus shares and/or equity injections, the Board of Directors recommend to increase Authorized Share Capital of the
Company from Rs.500,000,000 (five hundred million) to Rs. 1,000,000,000 (one billion) and to make necessary amendments
in clause 5 of the Memorandum of Association of the Company resulting from this increase. For this purpose, a special
resolution is required to be considered and approved in this meeting.

A copy of the Memorandum of Association has been kept at the registered office of the Company and may be inspected
during business hours on any working day from the date of publication of this notice till the conclusion of the general meeting.

The Directors are not interested, directly or indirectly, in the above special businesses, other than as Directors and shareholders
of the Company.

AGENDA ITEM 6 - To substitute Article 125 of the Articles of Association of the Company.
The existing provision that necessitates members’ approval in a general meeting for capitalizing reserves should be revised.
Currently, obtaining approval from members for capitalizing reserves is a time-consuming and costly process. To address
this, it is proposed to amend Article 125 of the Company’s Articles of Association. The suggested modification would authorize
the Board of Directors to make decisions regarding the capitalization of reserves.

A copy of the Memorandum and Articles of Association has been kept at the registered office of the Company and may be
inspected during business hours on any working day from the date of publication of this notice till the conclusion of the
general meeting.

The Directors are not interested, directly or indirectly, in the above special businesses, other than as Directors and shareholders
of the Company.

201 | Pakistan Cables Limited

Postal Ballot Paper
Tuesday 6

Monday, 5

Annual Report 2023 | 202

203 | Pakistan Cables Limited
205 | Pakistan Cables Limited
Proxy Form
I /We_________________________________________________________________________________________
of ________________________________________________________________________________ (full address)
being a member of Pakistan Cables Limited hereby appoint:
________________________________________________________________________Folio No.______________
of ___________________________________________________________________________________________
__________________________________________________________________________________ (full address)
or failing him ___________________________________________________________Folio No._______________
of ___________________________________________________________________________________________
__________________________________________________________________________________ (full address)
as my Proxy to attend and vote on my behalf at the Annual General Meeting of the Company to be held on September
26, 2023 at 13:00 hrs and at any adjournment thereof.

As witnessed my hands this ____________________________________day of ________________ 2023 signed by

the proxy holder.

Please affix
Revenue Stamp
of Rs. 5/-

Signature of Member
In the presence of (signature / name and address of witnesses)
1) _____________________________ _____________________________________
2) _____________________________ _____________________________________

Shareholder’s Folio No._________________________________ No. of shares held ________________________

A member entitled to attend and vote at this Meeting is entitled to appoint a proxy to attend and vote instead of
him. Such proxy must be a member of the company.

The instrument appointing a proxy should be signed by the member or by his attorney duly authorised in writing.
If the member is a corporation, its common seal should be affixed to the instrument.

The instrument appointing a proxy, together with the Power of Attorney under which it is signed or a notarially
certified copy thereof, should be deposited at the Registered Office of the Company not less than 48 hours before
the time of holding the meeting.

CDC shareholders or their Proxies should bring their original Computerized National Identity Card or Passport
along with the Participant’s ID number and their Account Number to facilitate their identification.

Annual Report 2023 | 212

213 | Pakistan Cables Limited
215 | Pakistan Cables Limited
Glossary
Acronym Description

ATL Active Tax Payers List

BVQI Bureau Veritas Quality International
CDC Central Depository Company
CEO Chief Executive Officer
CFO Chief Financial Officer
CNIC Computerized National Identity Card
CPEC China Pakistan Economic Corridor
CSR Corporate Social Responsibility
ERDA Electrical Research and Development Association
ERP Enterprise Resource planning
FDI Foreign Direct Investment
FPCCI Federation of Pakistan Chamber of Commerce and Industry
GDP Gross Domestic Product
HCOF High Conductivity Oxygen Free
HRMS Human Resource Management System
HSE Health, Safety and Environment
IEC International Electrotechnical Commission
ISO International Standardization Organisation
KEMA Keuring Van Electrotechnische Materialen (Dutch: Verification of Electrical
Engineering Materials; Netherlands)
KPMG Klynveld Peat Marwick Goerdeler (KPMG Taseer Hadi & Co)
LME London Metal Exchange
LSZH Low Smoke and Zero Halogen
LTD Limited
NEQ National Environment Quality Standards
NGO Non-Governmental Organization
NTN National Tax Number.
OHSAS Occupational Health and Safety Assessment
PCL Pakistan Cables Limited
PPEs Personal Protective equipment
PSQCA Pakistan Standards and Quality Control Authority
PSX Pakistan Stock Exchange
S.R.O. Statutory Regulatory Orders
SECP Securities and Exchange Commission of Pakistan
SUD Schedule of Unadjusted Differences
TUV Traditional Unionist Voice

Annual Report 2023 | 216

Head Office
Arif Habib Centre,
1st Floor, 23 MT Khan Road, Karachi
UAN: 021-111-CABLES (222-537)
Email: [email protected]

Pakistan Cables Limited

B-21, Pakistan Cables Road,
S.I.T.E, PO Box 5050, Karachi-75700
Tel No: 021-32561170-5

www.pakistancables.com