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01

Co m p a n y In fo rm a t io n 2

Visio n a n d M issio n St a t e m e n t 3

No t ice o f An n u a l Ge n e ra l M e e t in g 8

Dire ct o rs Re p o rt 9

St a t e m e n t o f Co m p lia n ce 1 2

Six Ye a rs Re vie w 1 4

Pa t t e rn o f Sh a re h o ld in g 1 5

Re vie w Re p o rt t o t h e M e m b e rs 1 9

Au d it o rs Re p o r t 2 3

Ba la n ce Sh e e t 2 4

Pro fit a n d Lo ss Acco u n t 2 6

St a t e m en t of Co m pre h e n sive In co m e 2 7

Ca sh Flo w St a t e m e n t 2 8

St a t e m e n t o f Ch a n ge s in Eq u it y 2 9

No t e s t o t h e Acco u n t s 3 0

CONTENTS

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02

Boa rd o f Dire c to rsS. M. Mo hsin Advisor

M e h d i M o h s in Ch a irm a n

M uje eb Ra sh id Ch ie f Exe cu tiv e O ffice r &

Ma n a g in g D ire c to r

M o a z M o h i u d d in

Syed Fa isa l Im am

U m m e Ku ls u m Im a m

Jama l Nasim NIT Nom inee

Audi t Commi t t eeS. M . M o h sin Ch a irm a n

Sye d Fa isa l Im a m M e m b e r

M o a z M o h iu d d in M e m b e r

Company Secre ta ry /CFOAtif Fayyaz

Audi torsA.F. Fe rg u so n & Co m p a n y

Ch a r t e re d A c c o u n ta n t s

Legal AdvisorsMin to & Mi rza

7 8 -Mo z a n g Ro a d , La h o re

Ph o n e : (0 4 2 ) 3 6 3 1 5 4 6 9 -7 0

Fax: (042) 36361 531

BankersHabib Ban k Lim ited

Allie d Bank Limite d

Askar i Com m erc ia l Ban k Limited

M CB Bank Limite d

Barclays Bank plc

The Royal Bank of Scot land

Nat ion a l Ban k of Pakista n

Sha re Re g is t ra rCorplink (Private) Limited,

Wings Arcade , 1-K (Com m erc ia l )

Mo d e l To w n , La h o re

Ph o n e : (0 4 2 ) 3 5 8 3 9 1 8 2 , 3 5 8 8 7 2 6 2 ,

Fax:(042) 35869037

Corporate Off ice39 -A, D-1, Gulbe rg III Lah or e

Ph o n e s : (0 4 2 ) 3 5 8 7 2 3 9 2 -9 6 , Fa x : (0 4 2 ) 3 5 8 7 2 3 9 8

E-Mai l : ho@mitche l ls .com.pk

We b s i t e : w w w .m i t c h e l l s . c o m .p k

Fact ory , Region al Sales

Office (Ce nt ra l) & Far m sRena la Khu rd , Dist r ic t Okara , Pakista n

Ph o n e s : (0 4 4 ) 2 6 3 5 9 0 7 -8 , 2 6 2 2 9 0 8

Fax: (044) 2621 416

E-Ma i l: rnk@m itche l ls .com .pk,

r so c @m i tc h e l l s . c o m .p k

Re gion al Sales Office (North )Plot No. 110 , St re e t No. 10 , I - 9 /2 , Ind ust r ia l Area ,

I s l a m a b a d

Ph o n e s : 0 5 1 -4 4 3 8 3 2 4 -2 6

Fax : (051) 4443 827

E-Mai l : rson@mitche l ls .com.pk

Re gion al Sales Office (Sou th )M eh ran VIP II, Groun d Floo r ,

P lo t 1 8 /3 D r . D a w o o d Po ta Ro a d , Ka ra c h i

Ph o n e s : (0 2 1 ) 3 5 2 1 2 1 1 2 , 3 5 2 1 2 7 1 2 & 3 5 2 1 9 6 7 5

Fax: (021) 35673 588

E-Mai l : rsos@mitche l ls .com.pk

COM PANY INFORM ATION

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VISION AND M ISSION STATEM ENT

1 . To b e a le a d e r in t h e ma r k e t s we s e r ve b y p r o vid in g q u a lit y p ro d u c t s t o o u r c o n su me r s

w h i l e l e a r n i n g f r o m t h e i r f e e d b a c k t o s e t e v e n h i g h e r s t a n d a r d s .

2 . To b e a c o m p a n y t h a t c o n t i n u o u s ly e n h a n c e s it s s u p e r io r t e c h n o l o g ic a l s kills t o

r e m a in in t e r n a t io n a l ly co m p e t i t iv e in t h is d a y a n d a g e o f in c r e a s in g c h a l le n g e s .

3 . To b e a c o m p a n y th a t a t t r a ct s a n d r e t a in s co m p e t e n t p e o p le b y cr e a t in g a cu lt u r e

t h a t f o s t e r s in n o v a t io n , p r o m o t e s in d i vid u a l gr o w t h a n d r e w a r d s in it ia t i ve a n d

p e r f o r m a n c e .

4 . To b e a c o m p a n y w h ic h o p t im a l ly co m b in e s it s p e o p le , t e c h n o lo g y, m a n a g e m e n t

s y st e m s , a n d m a r k e t o p p o r t u n i t ie s t o a c h ie v e p r o f it a b le g r o w th w h i le p r o v id in g

fa ir re tu rn s to it s sha re ho lde rs .

5 . To b e a c o m p a n y t h a t e n d e a vo u r s t o s e t t h e h ig h e st s t a n d ar d s in c o rp o r a te e t h ics .

6 . To b e a c o m p a n y th a t f u lf ills it s s o c ia l r e s p o n s ib ilit y .

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NOTICE OF ANNUAL GENERAL M EETING

N o t ic e i s h e r e b y g iv e n t h a t t h e 7 8 t h A n n u a l G e n e r a lMe et ing o f Mitche l l' s Fru it Farm s Lim ited w i ll be h e ldo n J a n u a r y 3 1 , 2 0 1 1 , o n M o n d a y a t 1 1 : 0 0 a . m . a t t h eRegiste red Office of th e Com pan y at 39-A, D-1, Gulbe rgI I I , L a h o r e t o t r a n s a c t t h e f o l l o w i n g b u s i n e s s :

O r d in a r y Bu s in e s s1 . To co n f ir m t h e m i n u te s o f t h e la s t An n u a l G e n e r a l

Me e t in g h e ld o n Ja n u a ry 2 9 ,2 0 1 0 .

2 . To r e c e iv e , c o n sid e r a n d a d o p t t h e An n u a l Au d it e dAc co u n t s o f t h e Co m p a n y f o r t h e y e a r e n d e dSe p t e m b e r 3 0 , 2 0 1 0 , to g e th e r w ith t h e D ire c to r s 'a n d Au d i t o r s' r e p o r t s t h e r e o n .

3 . To a p p r o v e p a y m e n t o f c a s h d iv id e n d @ 4 0 % a sr e c o m m e n d e d b y t h e D ir e c t o r s .

4 . To a p p o in t a u d it o r s fo r t h e ye a r e n d in g Se p t e m b e r3 0 , 2 0 1 1 , a n d t o f i x t h e i r r e m u n e r a t i o n a s

s u g ge s t e d b y t h e a u d it c o m m it t e e t o t h e Bo a r dof Direc tors . The re t ir ing au di tors nam ely MessersA. F. Fe r g u s o n & C o . , Ch a r t e r e d A c co u n t a n t s ,be ing e l ig ib le , offe r t hem se lves for reapp oin tme nt .

O t h e r Bu s in e s s

5 . To t r a ns a ct a n y o t h e r b us in e s s w h ic h m a y b ep l a ce d b e f o r e t h e m e e t in g w it h t h e p e r m is s io no f t h e c h a i r .

By o rd e r o f t h e Bo a rd

Lahore Atif FayyazJa n u a ry 0 8 , 2 0 1 1 Co m p a n y Se cre t a ry

N o t e s

1 . Th e s h a r e t r a n s f e r b o o k o f t h e Co m p a n y w i llr e m a i n c l o s e d f r o m J a n u a r y 2 4 , 2 0 1 1 , t oJa n u a r y 3 1 , 2 0 1 1 , ( b o t h d a y s i n c lu s i ve ) f o re n t i t l e m e n t o f f i n a l c a s h d i v i d e n d f o r t h ea c co u n t i n g p e r io d e n d e d Se p t e m b e r 3 0 , 2 0 1 0 .Tra n s fe r s r e c e ive d in o rd e r ( in c lu d in g d e p o s i tr e q u e s t s u n d e r CD S) a t o u r Re g i s t r a r ' s o f f i c eCorpl ink (Pr iva te ) Limited , Wings Arcade , 1-K(Com me rcial) Mo del Town , Lahore upto 1:00 p.m.on Janu ary 23 , 2011, wi ll be considere d in t im e .

2 . A m e m b e r e l ig ib l e t o a t t e n d a n d v o t e a t t h i sm e e t i n g m a y a p p o i n t a n o t h e r m e m b e r a sh is / h e r p r o x y t o a t t e n d a n d v o t e i n s t e a d o f h im /h e r . P ro xie s , in o rd e r t o b e e f f e c t iv e , m u s tb e r e c e iv e d b y t h e Co m p a n y a t t h e R e g is t e r e do f fic e n o t l a t e r t h a n 4 8 h o u r s b e f o r e t h e t i m em e e t in g is sc h e d u le d fo r .

3 . Sh a r e h o ld e r s a r e r e q u e s t e d t o im m e d i a t e lyn o t i f y t h e c h a n g e i n t h e i r a d d r e s s , i f a n y .

4 . Th e Be n e f ic ia l O w n e rs o f Ce n t ra l D e p o s i to ryCo m p a n y , e n t it le d t o a t t e n d a n d v o t e a t t h i sm e e t in g , m u s t b r in g h is /h e r N IC o r Pa ssp o r t t op r o v e h i s / h e r i d e n t i t y . I n c a s e o f P r o x y , a na t t e s t e d c o p y o f h i s / h e r N IC o r P a s s p o r t m u s tb e e n c lo s e d . R e p r e s e n t a t i ve s o f c o r p o r a t en u m b e r s s h o u l d b r i n g t h e u s u a l d o c u m e n t sr e q u i re d f o r s u ch p u r p o s e .

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DIRECTORS REPO RT

Th e d ir e c t o r s a r e p le a s e d t o s u b m it t h e a u d i t e d f in a n c ia l st a t e m e n t s o f t h e c o m p a n y fo r t h e y e a r e n d e d

Se p t e m b e r 3 0 , 2 0 1 0 .

Th i s w a s a v e ry c h a l le n g in g y e a r fo r t h e c o m p a n y c o n s id e r in g th e v e ry lo w ra t e o f e c o n o m ic g ro w th in

th e c o u n t ry fu r th e r a g g ra v a t e d b y a h ig h r a t e o f co s t p u sh in f la t i o n th a t c o n s id e ra b ly d im in i sh e d th e

p u rc h a s in g p o w e r o f c o n su m e rs . Fre q u e n t a s w e ll a s u n fo re se e n in t e r ru p t io n o f e le c t r i cit y su p p ly a n du n p re c e d e n te d in c re a se s i n t h e t r a d in g p r i ce s o f Su g a r , Glu c o se , M ilk Po w d e r , O i ls a n d Co c o a D e r iv a t iv e s

h a d a v e r y s t r o n g im p a c t o n o u r c o s t s .

Bu s in e s s v o lu m e g r o w t h f o r yo u r c o m p a n y w a s t h e r e f o r e s o m e w h a t d a m p e n e d b y t h e f re q u e n t n e e d s

to r e a d ju s t p r i c e s u p w a rd s t o m it i ga t e t h e e f f e c t o f r a p id ly r is in g r a w a n d p a c k in g m a te r ia l co s t s . Af t e r

d i sco n t in u in g so m e o f t h e n o n p e r fo rm in g p ro d u c t c a t e g o r i e s t h e c o m p a n y ' s n e t sa le s r e c o rd e d a g ro w th

of a lmo st 10 % r is ing f rom Rs. 1 ,255 m il lion to Rs. 1 ,377 m il lion . This r ise w as su pp ort ed by groce r ies and

c o n fe c t io n e ry sa le s sh o w in g a n u p w a rd t r e n d o f 2 7 % a n d 5 %, r e sp e c t ive ly. Go o d g ro w th w a s r e g is t e re d

in s a l e s t o t h e M o d e r n T r a d e a n d o u r e f fo r t s t o b o o s t E xp o r t s w e r e w e ll re w a r d e d b y a 4 5 % in c r e a s e i n

v a lu e .

Rat ion a l iza t ion of m anu fac tur ing e ffic ien c ies , costs a nd m argins he lped in increasing Opera t ing Prof it f rom

Rs. 7 2 m illio n t o Rs . 1 0 7 m i llio n . Im p ro v e m e n t s i n t h e Su p p ly Ch a in a n d so u n d m a n a g e m e n t o f Wo rk in g

Capi ta l he lpe d in re duc ing f inan c ia l charges f rom Rs.53 m illion in t he pre vious year , to Rs. 38 m illion du r ing

the year u nde r rev iew . As a resu lt of a l l the e ffor ts Afte r Tax Prof it for the year w as Rs 46 Million co m pare d

to Rs 1 4 m illio n in t h e c o r re sp o n d in g p e r io d l a s t y e a r .

Corp ora te Social Respo nsib ili ty

For the ob jec t ive o f fu l f il ling ou r Corp ora te Soc ia l Respo nsib i li ty seve ra l in i t ia t ives we re u nd er t aken to

conserve ene rgy inc luding avoidance o f unne cessary light ing and d evising pro duc t ion sche dules to m inimize

u s a g e . 09

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The de velopm ent of a mode rn effluen t t reatm ent

fac ility wa s s t a r t e d and enginee r ing de s igns

already com pleted . A Biogas gen erat ing un it ha s

already bee n com m iss ione d at ou r on s ite Dairy.

Our fac tory s t a f f was g iven d e ta iled exposure

on Occupa t iona l Hea l th an d Safe ty from

profess ional t ra iners . This was in add it ion to the

norm al t ra in ings und er taken for our s t a f f to

e n h a n c e p r o d u c t iv it y a n d g o o d m a i n t e n a n c e o f o u r p la n t a n d e q u ip m e n t .

Dur ing th e yea r w e cont inued to f inan c ia l ly

sup po rt AKRA an ins t i tut ion tha t is playing a n

im por ta n t ro le in Teacher Tra in ing P rograms

throu gh it s 22 bran ches in the reg ion . We a l so

don ated funds as w el l as good s for the alleviat ion

on the sufferings of f loo d vict ims

The com pan y cont r ibut ed Rs 252 m illion to

na t iona l exche que r on accoun t of va r ious

governm ent lev ies inc luding cus tom s duty ,

spec ia l exc ise d uty , s a l es t ax and incom e t ax .

Corp ora te & Fina nc ia l Rep or t ing

Fra m e W o rk

I n c o m p l i a n c e w i t h t h e c o d e o f c o r p o r a t e

g o v e r n a n c e , w e g i v e b e l o w s t a t e m e n t s o n

c o r p o r a t e a n d f in a n c i a l r e p o r t i n g f ra m e w o r k ;

Th e f in a n c ia l s t a t e m e n t s , p r e p a r e d b y t h e

ma nagem ent o f the com pany, represent fa ir ly

its stat e o f affairs, the results of its op erat ions,

c a s h f lo w s a n d c h a n g e s in e q u i t y .

P r o p e r b o o k s o f a c c o u n t o f t h e c o m p a n y

h a v e b e e n m a in t a in e d .

Appro pr ia t e accoun t ing polic ies ha ve be en

consisten tly applied in p rep aration of finan cial

s t a t e m e n t s a n d a c co u n t i n g e s t im a t e s a r e

b a s e d o n r e a s o n a b l e p r u d e n t j u d g m e n t .

In t e r n a t i o n a l Ac c o u n t i n g S t a n d a r d s , a s

app licable in Paki st an , have b ee n fo l low ed

in pre para t ion of finan cial s ta te m en ts and in

prep ara t ion of finan c ia l s t a t em ent s and any

d e p a r t u r e t h e r e f ro m h a s b e e n a d e q u a t e ly

disclosed.

Th e s y st e m o f in t e r n a l c o n t r o l is s o u n d in

des ign and has be en e ffect ively imp lem ent ed

a n d m o n i t o r e d . T h e r e a r e n o s i g n i f i c a n t

d o u b t s u p o n t h e c o m p a n y ' s a b i l i t y t o

cont inue a s going concern .

Th e r e h a s n o m a t e r ia l d e p a r t u r e f ro m t h e

b e s t p r a c t ic e s o f c o r p o r a t e g o v e r n a n c e , a s

d e t a i l e d i n t h e l i s t i n g r e g u l a t i o n s .

A st a t e m ent regard ing key finan c ia l da ta for

the la s t s ix yea rs is ann exed t o th is repo r t .

Dur ing the la s t bu s ine s s yea r fou r me e t ings of

t h e Bo a r d o f D ir e c t o r s w e r e h e l d . At t e n d a n c e

by ea ch Directo r was a s follow s:-

Na m e o f Dire ct o r At t e n d a n ceS.M .M o h sin 4M u je e b Ra sh id 4Ja m a l Na sim 4M e h d i M o h sin 2M o a z M o h iu d d in 2Sye d Fa isa l Im a m 1Um m e Ku lsu m Im a m 010

Net Sa les

Ne t Sa le s

Ye a rs

0

1 6 0 0 0 0 0

1 4 0 0 0 0 0

1 2 0 0 0 0 0

1 0 0 0 0 0 0

8 0 0 0 0 0

6 0 0 0 0 0

4 0 0 0 0 0

2 0 0 0 0 0

2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0

3.4%1.65%3%0.51%

4%

10 %

14%

65 %

Dis t r ibu t ion o f Revenue

Ra w Ma te ria l Co n su me d

Ma n u fa c tu rin g o v e rh e a d s

Distrib u tio n a n d Ma rk e tin g e x p e rse s

Ad min istra tiv e Ex p e n se s

Oth e rs

F in a n c e c o st

Taxation

Pro fit a fte r ta x

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Leave o f absence was grante d to d i rec tors who

c o u ld n o t a t t e n d t h e b o a r d m e e t i n gs .

Corpo ra t e Gove rna nce

Th e s t a t e m e n t o f c o m p lia n c e w i t h t h e b e s t

prac t i ces of Code of Corpo ra te Governan ce is

a n n e x e d .

P a t t e r n o f S h a r e h o l d i n g a n d

Info rm at ion Und e r Clau se XIX (I)

an d ( J) o f t he Cod e o f Corp ora t e

Gove rnance

T h e i n f o r m a t i o n u n d e r t h i s h e a d a s o n

Septe m ber 30 , 2010 is annexed.

Rela ted Par t ies

Th e t r a n s a c t io n s b e t w e e n t h e r e la t e d p a r t ie s

w e r e m a d e a t a r m ' s le n g t h p r i ce s , d e t e r m i n e d

in accordance with th e com parable uncon trolled

prices m eth od. The com pan y has fully comp lied

wi th the be s t prac t i ces on Trans fe r P r i cing as

c o n t a i n e d t h e L i s t i n g Re g u l a t i o n s o f S t o c k

Excha nge in Pa kis tan .

Earn ings Pe r Sha re

Basic and di lute d ea rning per share for the yearunde r repor t i s Rs . 9 .22 as comp ared to the la s t

year f igure of Rs . 2.79

Auditors

M / s A . F . F e r g u s o n & C o m p a n y , C h a r t e r e d

Accoun tan ts , Lah ore , re t i re , and be ing el igible

h a v e o f fe r e d t h e m s e lv e s fo r r e - a p p o i n t m e n t .

Th e A u d it Co m m i t t e e h a s a ls o r e c o m m e n d e d

the i r re -appoin tment .

Acknowledgement s

Th e b o a r d o f d i r e c t o r s w o u l d l ik e t o e x p r e s s

the ir grat itude to a l l em ployees for there s t ron g

cont ribu tion in successfully overcom ing ad verse

circumstan ces faced by the com pan y during the

year .

Fo r a n d o n b e h a l f o f

the Board

Mujeeb Rashid

La h o re Ch ie f Exe cu t ive Office r &

Ja nu ary 06 , 2 011 M an agin g Dire co to r

11

1 0 .0 0

8 .0 0

6 .0 0

4 .0 0

2 .0 0

0 .0 0

-2 .0 0

0 .0 0

Rupees

perShare

5 .0 9

1 .6 5

2 .7 9

9 .2 2

-0 .1 4

0 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0

Ye a rs

Earn ings Per Share

Ru p e e s p e r S h a re

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STATEM ENT OF COM PLIANCEw it h t h e Co d e o f Co rp o ra t e G o ve rn an ce

Th e s t a t e m e n t is b e in g p re se n t e d to c o m p ly w i th t h e Co d e o f Co rp o ra t e G o v e rn a n c e c o n ta in e d in lis t in g

re g u la t io n s o f Ka ra c h i a n d La h o re S to c k Ex ch a n g e s fo r t h e p u rp o se o f e s t a b l ish in g a f r a m e w o rk o f g o o d

g o ve r n a n c e , w h e r e b y a lis t e d c o m p a n y i s m a n a g e d in c o m p lia n c e w it h t h e b e s t p r a c t i ce s o f c o r p o r a t e

g o v e r n a n c e .

T h e c o m p a n y h a s a p p l i e d t h e p r i n c i p l e s c o n t a i n e d i n t h e C o d e i n t h e f o l l o w i n g m a n n e r :

1 . Th e B o a r d o f D ir e c t o r s o f t h e Co m p a n y in c lu d e s S ix n o n - e xe c u t iv e a n d o n e e x e cu t iv e d ir e c t o r .

2 . Th e d i re c t o r s h a ve c o n fir m e d t h a t n o n e o f t h e m is s e r vin g a s a d ir e c t o r in m o r e t h a n t e n l is t e d

c o m p a n ie s , i n c lu d in g th i s c o m p a n y .

3 . All t h e r e s id e n t d i re c t o r s o f t h e C o m p a n y a r e r e gis t e r e d a s t a xp a y e rs a n d n o n e o f t h e m h a s d e fa u lt e d

in t h e p a y m e n t o f a n y lo a n to a b a n k in g co m p a n y , a D FI o r a n N BFI o r , b e in g a m e m b e r o f a s to c k

e x ch a n g e , h a s b e e n d e c la r e d a s a d e f a u lt e r b y t h a t s t o c k e x ch a n g e .

4 . Th e C o m p a n y h a s p r e p a r e d a St a t e m e n t o f Et h ic s a n d B u sin e s s P ra c t ic e s w h ic h h a s b e e n s ig n e d b y

a ll t h e d i re c t o r s a n d e m p lo y e e s o f t h e Co m p a n y .

5 . Th e B o a r d h a s d e v e l o p e d a vis io n / m is s io n s t a t e m e n t , o v e r a ll c o r p o r a t e s t r a t e g y a n d s ig n if ic a n t

pol ic ies o f the Com pan y. A com ple te record of par t icu la rs of s ignificant pol ic ies a long w i th the da t es

o n w h i ch t h e y w e r e a p p r o v e d o r a m e n d e d h a s b e e n m a in t a i n e d .

6 . All t h e p o we rs of t h e Bo a rd h ave b e en d uly e xe rcis ed a nd d ecis io n s

o n m a te r i a l t r a n sa c t io n s , in c lu d in g a p p o in tm e n t a n d d e t e rm in a t io n

o f r e m u n e r a t io n a n d t e r m s a n d co n d i t io n s o f e m p lo y m e n t o f

t h e CEO a n d o t h e r e x e c u t iv e d i re c t o r s , h a v e b e e n t a k e n b y

t h e B o a r d .

7 . Th e m e e t in gs o f t h e Bo a rd w e re p re s id e d o ve r by th e

Ch a i r m a n a n d , i n h is a b s e n c e , b y a d i r e ct o r e le c t e d b y t h e Bo a r d f o r

th is p u rp o se a n d th e Bo a rd m e t a t l e a s t o n c e in e v e ry q u a r t e r . Wr it t e n

n o t i c e s o f t h e B o a r d m e e t in g , a lo n g w i t h a g e n d a a n d w o r k in g p a p e r s

w e r e c ir c u la t e d a t l e a s t s e v e n d a y s b e f o r e t h e m e e t in g . Th e m in u t e s

o f t h e m e e t i n g s w e r e a p p r o p r ia t e l y r e c o r d e d a n d

c ircula ted .

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8 . N o o rie n t a t io n c ou r se s w e r e co n d u ct e d d u rin g

t h e y e a r f o r d i re c t o r s o f t h e c o m p a n y d u e t o

th e ir b u sy sc h e d u le .

9 . Th e Bo a r d h a s a p p ro ve d a p p o in t m e n t o f Ch ie f

E x e c u t i v e O f f i c e r & M a n a g i n g D i r e c t o r

in c lu d i n g h is r e m u n e r a t io n a n d t e r m s a n d

c o n d it io n s o f e m p lo y m e n t , a s d e t e r m in e d b y

th e Bo a rd o f D ire c to r s .

1 0 . Th e D ir e c t o r s' r e p o r t fo r t h is ye a r h a s b e e n

p re p a re d in c o m p lia n c e w i th t h e r e q u ire m e n t so f t h e Co d e a n d f u lly d e s c r ib e s t h e s a l ie n t

m a t t e r s r e q u i r e d t o b e d is c lo s e d .

1 1 . Th e f in a n c ia l s t a t e m e n t s o f t h e Co m p a n y w e r e

du ly end orse d by Chie f Execu t ive Office r a nd

Chief Fina ncial Officer p rior to a pp roval by th e

Bo a rd o f D ire c to r s .

1 2 . Th e D ir e c t o r s , Ch i e f Ex e c u t iv e O f fic e r a n d

e x e c u t iv e s d o n o t h o l d a n y in t e r e s t in t h e

s h a r e s o f t h e C o m p a n y o t h e r t h a n t h a t

d i s c l o s e d i n t h e p a t t e r n o f s h a r e h o l d i n g .

1 3. Th e C o m p a n y h a s c o m p l ie d w i t h a ll t h e

corpora te and f inanc ia l report ing requireme nts

o f t h e C o d e .

1 4 . Th e Bo a r d h a s fo r m e d a n a u d it c o m m it t e e .

Th e c o m m i t t e e c o n s is t s o f t h re e m e m b e rs a n d

a l l t h e m e m b e rs a re n o n -e x e c u t ive d i r e c to r s .

1 5 . Th e m e e t in g s o f t h e a u d it co m m it t e e w e r e

h e l d a t l e a s t o n c e e v e r y q u a r t e r p r io r t o

a p p r o v a l o f in t e r im a n d f in a l r e s u l t s o f t h e

Co m p a n y a s r e q u i r e d b y t h e c o d e . Th e t e r m s

o f r e fe r e n c e o f t h e c o m m it t e e h a v e b e e nf o rm e d a n d a d v is e d t o t h e c o m m it t e e f o r

c o m p l i a n c e .

1 6 . Th e B o a r d h a s s e t -u p a n e ff e ct iv e in t e r n a l

a u d i t f u n c t i o n , m e m b e r s o f w h i c h s u i t a b l y

q u a l if ie d a n d e x p e r ie n c e d fo r t h e p u rp o se a n d

a r e c o n v e r s a n t w i t h t h e p o l i c i e s a n d

p r o c e d u r e s o f t h e Co m p a n y a n d t h e y a r e

involved in th e in te rna l audi t func t ion on a fu l l

t im e b a s is .

1 7 . Th e s t a t u t o r y a u d it o r s o f t h e Co m p a n y h a ve

c o n f i r m e d t h a t t h e y h a v e b e e n g i v e n a

sa t i s fa c to ry r a t i n g u n d e r t h e Q u a l it y Co n t ro l

Re v ie w p ro g ra m o f t h e In s t it u t e o f Ch a r t e re d

Ac c o u n ta n t s o f Pa k is t a n , t h a t t h e y o r a n y o f

t h e p a r t n e r s o f t h e f ir m , t h e i r s p o u s e s a n d

m in o r c h ild r e n d o n o t h o ld s h a r e s o f t h e

Co m p a n y a n d th a t t h e f irm a n d a ll it s p a r tn e r s

a r e i n c o m p l i a n c e w i t h I n t e r n a t i o n a l

Fe d e ra t io n o f A c c o u n ta n t s ( IFAC) g u id e l in e s

o n c o d e o f e t h i cs a s a d o p t e d b y t h e I n s t it u t e

o f C h a r t e r e d A c c o u n t a n t s o f P a k i s t a n .

1 8. Th e s t a t u t o r y a u d it o r s o r t h e p e r s o n s

a sso cia t e d w ith t h e m h a v e n o t b e e n a p p o in t e d

to pro vide o the r se rv ices except in accordance

w i t h t h e lis t in g r e g u l a t io n s a n d t h e a u d i t o r s

h a v e c o n f irm e d th a t t h e y h a v e o b se rv e d IFAC

g u id e l in e s in t h i s r e g a rd .

1 9 . W e c o n f ir m t h a t a l l o t h e r m a t e r ia l p r in c ip le s

c o n ta in e d in t h e Co d e h a v e b e e n su b s t a n t i a lly

c o m p l ie d w ith .

Fo r a n d o n b e h a lf

o f t h e B o a r d

Mu je e b Ra sh id

La h o re Ch ie f Exe cu t ive O ffice r &

Ja n u a ry 0 6 , 2 0 1 1 M an a gin g Dire c t o r

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SIX YEARS REVIEW

2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0

Ne t sa le s 8 0 3 ,6 4 7 7 5 1 ,7 0 3 8 6 6 ,6 1 9 1 ,0 3 8 ,6 3 7 1 ,2 5 5 ,0 6 4 1 ,3 7 6 ,8 6 1

Gro ss Pro fit 1 2 4 ,9 8 6 1 0 4 ,6 5 3 1 6 0 ,3 5 3 1 8 9 ,8 1 4 2 3 4 ,9 9 7 3 0 3 ,3 4 8

Gro ss Pro fit t o Sa le s - % 1 5 .5 5 1 3 .9 2 1 8 .5 0 1 8 .2 8 1 8 .7 2 2 2 .0 3

Pro fit b e fo re t a x 2 8 ,0 9 2 (3 ,4 8 0 ) 3 9 ,7 6 6 1 3 ,1 1 3 1 8 ,5 3 4 6 9 ,2 0 8

Pro fit b e fo re t a x t o sa le s - % 3 .5 0 (0 .4 6 ) 4 .5 9 1 .2 6 1 .4 8 5 .0 3

Pro fit a ft e r t a x 2 0 ,6 5 5 (7 0 8 ) 2 5 ,6 6 6 8 ,3 3 8 1 4 ,0 5 2 4 6 ,4 6 8

Ea rn in gs p e r sh a re - Ru p e e s 4 .1 0 (0 .1 4 ) 5 .0 9 1 .6 5 2 .7 9 9 .2 2

Ca sh Divid e n d - % 2 0 .0 0 - 2 0 .0 0 1 0 .0 0 2 0 .0 0 4 0 .0 0

St o ck Divid e n d - % - - - - - -

Ca p it a l Exp e n d it u re 3 1 ,0 2 1 2 6 ,1 0 7 6 1 ,9 1 0 8 6 ,2 5 3 3 6 ,2 6 3 1 3 ,9 9 3

Pro d u c t io n :

Co n fe ct io n a ry - in t o n s 5 ,8 4 8 4 ,0 5 3 4 ,4 0 8 4 ,9 4 4 5 ,0 0 3 4 ,7 0 3

Gro ce r ie s - in d o ze n s 8 1 0 ,2 8 0 8 8 3 ,8 9 3 9 6 0 ,8 4 8 1 ,2 7 6 ,3 0 7 1 ,3 8 1 ,3 5 7 1 ,3 7 5 ,0 9 6

(Rupee s in thousand s)

Gross Profit, Profit before and After Tax

Rupees

int

housan

ds

350000

300000

250000

200000

150000

100000

5 0 0 0 0

0

-50000

Years

Gross prof i t

Prof i t before t ax

Prof i t af t er t ax

0 2 006 2 00 7 2 00 8 2 00 9 20 10

Years

Capital Expenditure

0 1 0 0 0 0 2 0 0 0 0 3 0 0 0 0 4 0 0 0 0 5 0 0 0 0 6 0 0 0 0 7 0 0 0 0 8 0 0 0 0 9 0 0 0 0

Ru p e e s in t h o u sn a d s

2 0 1 0

2 0 0 9

2 0 0 8

2 0 0 7

2 0 0 6

0

Ca p ita l

Exp e n d itu re

Ye a r

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PATTERN OF SHARE HOLDINGAS ON SEPTEMBER 30, 2 01 0

1. In M R1 1 6 0 3

2 . Na m e o f t h e Co m p a n y M ITCHELLS FRUIT FARM S LIM ITED.

h e s h a r e s h e ld b y t h e s h a re h o ld e r s a s a t 30-09-2010

No . o f Sh a re h o ld in g Sh a re s

Sh a re h o ld e rs Fro m To He ld

1 9 3 1 1 0 0 7 ,9 5 1

2 6 7 1 0 1 5 0 0 6 1 ,9 3 8

1 0 9 5 0 1 1 ,0 0 0 7 7 ,3 2 4

4 7 1 ,0 0 1 5 ,0 0 0 9 9 ,7 3 01 3 5 ,0 0 1 1 0 ,0 0 0 1 0 2 ,4 5 8

3 1 0 ,0 0 1 1 5 ,0 0 0 3 7 ,0 8 6

3 1 5 ,0 0 1 2 0 ,0 0 0 5 3 ,7 9 3

3 2 0 ,0 0 1 2 5 ,0 0 0 6 7 ,5 4 4

2 4 0 ,0 0 1 4 5 ,0 0 0 8 5 ,5 5 2

3 4 5 ,0 0 1 5 0 ,0 0 0 1 4 8 ,6 8 9

1 5 5 ,0 0 1 6 0 ,0 0 0 5 5 ,6 7 0

2 8 0 ,0 0 1 8 5 ,0 0 0 1 6 1 ,7 1 2

1 1 0 0 ,0 0 1 1 0 5 ,0 0 0 1 0 0 ,8 4 3

2 1 0 5 ,0 0 1 1 1 0 ,0 0 0 2 1 8 ,1 7 7

1 1 2 0 ,0 0 1 1 2 5 ,0 0 0 1 2 0 ,3 0 0

1 1 8 5 ,0 0 1 1 9 0 ,0 0 0 1 8 7 ,3 5 3

1 3 4 0 ,0 0 1 3 4 5 ,0 0 0 3 4 0 ,0 1 41 5 6 0 ,0 0 1 5 6 5 ,0 0 0 5 6 2 ,2 0 3

1 6 4 5 ,0 0 1 6 5 0 ,0 0 0 6 4 6 ,7 9 0

1 8 1 0 ,0 0 1 8 1 5 ,0 0 0 8 1 2 ,2 7 3

1 1 ,0 9 0 ,0 0 1 1 ,0 9 5 ,0 0 0 1 ,0 9 2 ,6 0 0

6 5 6 5 ,0 4 0 ,0 0 0

To ta l

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5 . Ca t e go r ie s o f sh a re h o ld e rs Sh a re s h e ld Pe rce n t a ge

5 .1a n d m in o r ch ild e rn 2 ,6 8 7 ,3 6 5 5 3 .3 2 0 7 %

5 .2 Ass ocia te d Co m p an ie s,- -

5 .3 NIT a n d ICP 5 7 6 ,6 8 1 1 1 .4 4 2 1 %

5 .4

4 6 0 ,6 3 8 9 .1 3 9 6 %

5 .5 In su ra n ce Co m p a n ie s 2 8 8 ,9 9 6 5 .7 3 4 0 %

5 .6 M o d a ra b a s a n d M u t u a l Fu n d s - -

5 .7 Sh a re h o ld e rs h o ld in g 1 0 % 3 ,1 6 7 ,6 4 0 6 2 .8 5 0 0 %

5 .8 Ge ne ra l Pu blica . Lo ca l 9 8 9 ,8 9 7 1 9 .6 4 0 8 %b . Fo r e ig n

5 .9

Jo in t S to ck Co m p an ies 3 6 ,4 2 3 0 .7 2 2 7 %

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Cat e gor ie s o f Sha re Ho lde r s a s req u ired un de r C. C. G.AS ON SEPTEMBER 30, 2 01 0

S.No . NAM E HOLDING % AGE

DIRECTORS, CEO THEIR SPOU SES & M INOR CHILDREN:

1 SYED M OHAM M AD M OHSIN 1 ,0 9 2 ,6 0 0 2 1 .6 7 8 6 %

2 SYED M OHAM M AD M EHDI M OHSIN 6 4 6 ,7 9 0 1 2 .8 3 3 1 %

SYED M OHAM M AD M EHDI M OHSIN (CDC) 3 ,8 0 0 0 .0 7 5 4 %

3 SYED FAISAL IM AM 8 0 ,2 0 8 1 .5 9 1 4 %

4 UM M E KULSUM IM AM 7 2 0 0 .0 1 4 3 %

5 M R. M OAZ M O HIUDDIN 5 0 0 0 .0 0 9 9 %

6 M R.JAM AL NASIM NIT NOM INEE

7 M UJEEB RASHID (CDC) 5 0 0 0 .0 0 9 9 %

8 M RS. SITW AT M O HSIN W / O SYED M OHAM M AD M OHSIN 8 1 2 ,2 7 3 1 6 .1 1 6 5 %

M RS. SITW AT M OHSIN W / O SYED M OHAM M AD M OHSIN (CDC) 4 9 ,9 7 4 0 .9 9 1 5 %

2 ,6 8 7 ,3 6 5 5 3 .3 2 0 7 %ASSOCIATED COM PANIES:

0 0 .0 0 0 0 %NIT & ICP:

1 NATIONAL INVESTM ENT TRUST LIM ITED 1 4 ,4 7 8 0 .2 8 7 3 %

2 NATIONAL BANK OF PAKISTAN TRUSTEE DEPTT. (CDC) 5 6 2 ,2 0 3 1 1 .1 5 4 8 %

5 7 6 ,6 8 1 1 1 .4 4 2 1 %

BANKS, DEVELOP M ENT FINAN CIAL INSTITUTIONS,

NO N BANKING FINANCIAL INSTITUTIONS:

1 THE BANK OF PUNJAB TREASURY DIVISION. (CDC) 1 2 0 ,3 0 0 2 .3 8 6 9 %2 NATIONAL BANK OF PAKISTAN. (CDC) 3 4 0 ,0 1 4 6 .7 4 6 3 %

3 FAYSAL BANK LIM ITED. (CDC) 1 2 4 0 .0 0 2 5 %

4 ESCORTS INVESTM ENT BANK LIM ITED. (CDC) 2 0 0 0 .0 0 4 0 %

4 6 0 ,6 3 8 9 .1 3 9 6 %

INSURANCE COM PANIES:

1 CENTRAL INSURANCE CO. LIM ITED. (CDC) 1 0 0 ,8 4 3 2 .0 0 0 9 %

2 IGI NSURANCE LIM ITED (CDC) 1 8 7 ,3 5 3 3 .7 1 7 3 %

3 RELIANCE INSURANCE COM PANY LTD. (CDC) 8 0 0 0 .0 1 5 9 %

2 8 8 ,9 9 6 5 .7 3 4 0 %

M ODARABAS & M UTUAL FUNDS: 0 0 .0 0 0 0 %

INVESTMENT COM PANIES: 0 0 .0 0 0 0 %

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S.No . NAM E HOLDING % AGE

JOINT STOCK COMPANIES

1 BURM A OIL M ILLS LTD. (CDC) 5 0 0 0 .0 0 9 9 %

2 DARSON SECURITIES (PVT) LTD. (CDC) 5 0 .0 0 0 1 %

3 EDULJEE DINSHAW (PVT) LTD. (CDC) 1 1 ,0 8 8 0 .2 2 0 0 %

4 ILYAS SECURITIES (SM -PVT) LTD. (CDC) 1 0 0 0 .0 0 2 0 %

5 LAKHANI SECURITIES (PVT) LTD. (CDC) 6 ,0 0 0 0 .1 1 9 0 %

6 M AZHAR HUSSAIN SECURITIES (PVT) LTD.(CDC) 9 6 0 .0 0 1 9 %

7 NALI DINSHAW (PVT) LTD.(CDC) 6 ,1 9 2 0 .1 2 2 9 %

8 NH SECURITIES (PVT) LTD.(CDC) 5 0 0 0 .0 0 9 9 %9 PERIN DINSHAW (PVT) LTD. (CDC) 1 1 ,5 2 0 0 .2 2 8 6 %

1 0 SARFARAZ M AHM OOD (PVT) LTD. (CDC) 5 0 0 .0 0 1 0 %

1 1 PEARL CAPITAL M ANAGEM ENT (PVT) LTD. (CDC) 3 3 2 0 .0 0 6 6 %

1 2 SEVEN STAR SECURITIES (PVT) LTD. (CDC) 4 0 0 .0 0 0 8 %

3 6 ,4 2 3 0 .7 2 2 7 %

SHARES HELD BY THE GENERAL PUBLIC: 9 8 9 ,8 9 7 1 9 .6 4 0 8 %

5 ,0 4 0 ,0 0 0 1 0 0 .0 0 0 0 %

SHAREHOLDERS HOLDING 10 % O R M ORE O F TOTAL CAPITAL:

1 NATIONAL BANK OF PAKISTAN TRUSTEE DEPTT. (CDC) 5 6 2 ,2 0 3 1 1 .1 5 4 8 %

2 SYED M OHAM M AD M EHDI M OHSIN 6 5 0 ,5 9 0 1 2 .9 0 8 5 %

3 M RS. SITW AT M O HSIN 8 6 2 ,2 4 7 1 7 .1 0 8 1 %

4 SYED M OHAM M AD M OHSIN 1 ,0 9 2 ,6 0 0 2 1 .6 7 8 6 %

3 ,1 6 7 ,6 4 0 6 2 .8 5 0 0 %

a r t h e t r a d in g in s h a re s o f t h e c o m p a n y b y t h e Dir e ct o r s, CEO , C FO , C o m p a n y S e cr e t a ry

a n d th e i r sp o u se s a n d m in o r c h i ld re n i s a s fo l lo w s :

S.N O. N AM E SALE P URCHASE

1 M RS. SITW AT M O HSIN - 7 ,0 1 4

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REVIEW REPORT TO THE M EM BERSon St a t e m en t o f Com pliance wi th Bes t P rac t ice s o f Cod e o f Corpo ra t e Gove rn ance

We h a v e r e v ie w e d th e S t a t e m e n t o f Co m p l ia n c e w i th

th e b e s t p ra c t ic e s c o n ta in e d in t h e Co d e o f Co rp o ra t e

G o v e r n a n c e p r e p a r e d b y t h e B o a r d o f D i r e c t o r s o f

M i t c h e l l ' s F r u i t F a r m s L i m i t e d ( ' t h e C o m p a n y ' ) t o

c o m p l y w i t h t h e L i s t i n g R e g u l a t i o n N o . 3 5 o f t h e

Karach i, Laho re an d Islama bad Stock Exchange s, whe re

th e Co m p a n y is lis t e d .

Th e r e s p o n s i b ilit y f o r c o m p lia n c e w i t h t h e Co d e o f

Corpo ra te Govern ance is tha t of the Board o f Direc tors

of the Com pan y. Our resp on sib i lity is to rev iew, to th e

e x t e n t w h e r e s u c h c o m p lia n c e c a n b e o b j e c t iv e ly

ver if ied , wh eth er the Sta tem ent of Com pliance re f lec ts

t h e s t a t u s o f t h e C o m p a n y ' s c o m p l i a n c e w i t h t h e

p ro v i sio n s o f t h e Co d e o f Co rp o ra t e G o v e rn a n c e a n d

re p o r t if it d o e s n o t . A re v ie w is l im it e d p r im a r i ly t o

i n q u i r i e s o f t h e C o m p a n y p e r s o n n e l a n d r e v i e w o f

v a r io u s d o c u m e n t s p r e p a r e d b y t h e C o m p a n y t o

c o m p ly w i th t h e Co d e .

As p a r t o f o u r a u d it o f t h e f in a n c ia l s t a t e m e n t s w e a re

re q u i re d to o b t a in a n u n d e r s t a n d in g o f t h e a c c o u n t in g

a n d in t e r n a l co n t r o l s y s t e m s s u f fic ie n t t o p la n t h e

a u d it a n d d e v e l o p a n e f f e c t iv e a u d i t a p p r o a c h . W e

a r e n o t r e q u i r e d t o c o n s i d e r w h e t h e r t h e B o a r d ' s

s t a t e m e n t o n in t e r n a l co n t r o l c o v e r s a l l r is k s a n d

c o n t r o ls , o r t o f o r m a n o n io n o n t h e e f fe c t iv e n e s s o f

s u c h i n t e r n a l c o n t r o l s , t h e C o m p a n y ' s c o r p o r a t e

g o v e r n a n c e p r o c e d u r e s a n d r is ks .

Furth er , Sub -Regu la t ion (x i ii a ) of List ing Regu la t ion

35 no tified by The Karachi Sto ck Exchan ge (Guaran te e)

L im i t e d v id e c i r c u l a r K SE/N -2 6 9 d a t e d Ja n u a ry 1 9 ,

2 0 0 9 re q u i re s t h e Co m p a n y to p l a ce b e fo re t h e b o a rd

of d i rec tors for th e i r considera t ion and approva l re la ted

par ty t ransa c t ions d is t inguish ing be t we en t ra nsac t ions

c a r r ie d o u t o n t e r m s e q u i va le n t t o t h o s e t h a t p r e v a il

in a rm ' s l e n g th t r a n sa c t io n a n d t r a n sa c t io n s w h ic h a re

n o t e x e c u te d a t a rm ' s le n g th ' s p r i ce , r e c o rd in g p ro p e r

ju st ifica t io n fo r u sin g s u ch a lte rn a t e p ric in g m e ch a n ism .Fu r th e r , a l l su c h t r a n sa c t io n s a re a l so r e q u ire d t o b e

se p a ra t e ly p la c e d b e fo re t h e a u d i t co m m i t t e e . We a re

o n l y r e q u i r e d a n d h a v e e n s u r e d c o m p l i a n c e o f

r e q u i re m e n t t o t h e e x t e n t o f a p p ro v a l o f r e la t e d p a r ty

t r a n s a c t io n b y t h e b o a r d o f d ir e c t o r s a n d p l a c e m e n t

o f s u c h t r a n s a c t i o n s b e f o r e t h e a u d i t c o m m i t t e e .

We h a v e n o t c a r r ie d o u t a n y p ro c e d u re s t o d e t e rm in e

w h e t h e r t h e r e l a t e d p a r t y t r a n s a c t i o n s w e r e

u n d e r t a k e n a t a r m ' s le n g t h p r i ce o r n o t .

Based o n our rev iew, noth ing has come to our a t t en t ion

w h i c h c a u s e s u s t o b e l i e v e t h a t t h e S t a t e m e n t o f

Co m p l ia n c e d o e s n o t a p p ro p r ia t e ly re f le c t t h e s t a tu s

of the Com pan y 's com pl iance , in a l l m ate r ia l resp ec ts ,

w i t h t h e b e s t p r a c t i c e s c o n t a i n e d i n t h e C o d e o f

Co r p o r a t e G o ve r n a n c e a s a p p lic a b le t o t h e c o m p a n y

f o r t h e y e a r e n d e d S e p t e m b e r 3 0 , 2 0 1 0 .

A. F. Fergu so n & Co.Ch a r t e re d A c c o u n ta n t s

N a m e o f E n g a g e m e n t P a r t n e r : I m r a n F a r o o q M i a n

La h o re ,

Ja n u a ry 0 6 , 2 0 1 1 .19

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alReport2010

22

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W hav auditd th annxd alanc sht of Mitchlls Fruit Farms Limitd as at Sptmr 30, 2010

and th rlatd prot and loss account, statmnt of comprhnsiv incom, cash ow statmnt andstatmnt of changs in quity togthr with th nots forming part throf, for th yar thn ndd andw stat that w hav otaind all th informaon and xplanaons which, to th st of our knowldgand lif, wr ncssary for th purposs of our audit.

It is th rsponsiility of th companys managmnt to stalish and maintain a systm of intrnal control,and prpar and prsnt th aov said statmnts in conformity with th approvd accounng standardsand th rquirmnts of th Companis Ordinanc, 1984. Our rsponsiility is to xprss an opinion onths statmnts asd on our audit.

W conductd our audit in accordanc with th auding standards as applical in Pakistan. Ths standardsrquir that w plan and prform th audit to otain rasonal assuranc aout whthr th aov saidstatmnts ar fr of any matrial misstatmnt. An audit includs xamining, on a tst asis, vidncsupporng th amounts and disclosurs in th aov said statmnts. An audit also includs assssing

th accounng policis and signicant smats mad y managmnt, as wll as, valuang th ovrallprsntaon of th aov said statmnts. W liv that our audit provids a rasonal asis for ouropinion and, ar du vricaon, w rport that:

a) in our opinion, propr ooks of account hav n kpt y th company as rquird y th CompanisOrdinanc, 1984;

) in our opinion:

i) th alanc sht and prot and loss account togthr with th nots thron hav n drawnup in conformity with th Companis Ordinanc, 1984, and ar in agrmnt with th ooks ofaccount and ar furthr in accordanc with accounng policis consistntly applid xcpt forth changs in accounng policis as statd in not 2.2.1 to th annxd nancial statmntswith which w concur;

ii) th xpnditur incurrd during th yar was for th purpos of th companys usinss; and

iii) th usinss conductd, invstmnts mad and th xpnditur incurrd during th yar wrin accordanc with th ojcts of th company;

c) in our opinion and to th st of our informaon and according to th xplanaons givn to us, thalanc sht, prot and loss account, statmnt of comprhnsiv incom, cash ow statmnt andstatmnt of changs in quity togthr with th nots forming part throf conform with approvdaccounng standards as applical in Pakistan, and giv th informaon rquird y th CompanisOrdinanc, 1984, in th mannr so rquird and rspcvly giv a tru and fair viw of th stat ofth companys aairs as at Sptmr 30, 2010 and of th prot, total comprhnsiv incom, itscash ows and changs in quity for th yar thn ndd; and

d) in our opinion zakat dducl at sourc undr th Zakat and Ushr Ordinanc, 1980 (XVIII of 1980),

was dductd y th company and dpositd in th Cntral Zakat Fund stalishd undr scon 7of th ordinanc.

Lahor Datd: January 06, 2011 A. F. Ferguson & CoName of Engagement Partner: Imran Farooq Mian Chartrd Accountants

AUDITORS REPORT TO THE MEMBERS

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2010 2009

Note Rupees Rups

EQUITY AND LIABILITIES

CAPITAL AND RESERVES

Authorisd capital

10,000,000 (2009: 10,000,000) ordinary

shars of Rs 10 ach 100,000,000 100,000,000

Issud, suscrid and paid up capital

5,040,000 (2009: 5,040,000)

ordinary shars of Rs 10 ach 5 50,400,000 50,400,000

Rsrvs 6 9,635,878 9,635,878

Unappropriatd prot 246,193,884 209,806,010

306,229,762 269,841,888

NON-CURRENT LIABILITIES

Dfrrd liailis 7 75,819,871 50,478,690

CURRENT LIABILITIES

Short trm running nancs - scurd 8 166,615,728 307,671,564

Trad and othr payals 9 103,254,409 87,816,200

Accrud nanc cost 4,466,921 12,099,523

274,337,058 407,587,287

CONTINGENCIES AND COMMITMENTS 10

656,386,691 727,907,865

Th annxd nots 1 to 36 form an intgral part of ths nancial statmnts.

BALANCE SHEETAS AT SePTeMbeR 30, 2010

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2010 2009

Note Rupees Rups

ASSETS

NON-CURRENT ASSETS

Proprty, plant and quipmnt 11 304,256,661 321,687,827

Intangil assts 12 1,060,580 1,325,725

Long trm loans and dposits 751,753 1,110,482

biological assts 13 6,875,933 5,397,600

312,944,927 329,521,634

CURRENT ASSETS

Stors, spars and loos tools 14 12,426,849 12,781,281

Stock in trad 15 230,917,920 260,382,527

Trad dts 16 40,716,666 58,674,183

Advancs, dposits, prpaymnts and othr rcivals 17 51,252,732 53,330,558

Cash and ank alancs 18 8,127,597 13,217,682

343,441,764 398,386,231

656,386,691 727,907,865

Mehdi Mohsin Mujeeb Rashid

Chairman Chif excuv Ocr & Managing Dirctor

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PROFIT AND LOSS ACCOUNTFOR THe YeAR eNDeD SePTeMbeR 30, 2010

2010 2009

Note Rupees Rups

Sals 19 1,376,861,492 1,255,064,266

Cost of sals 20 (1,073,513,561) (1,020,067,729)

Gross prot 303,347,931 234,996,537

Administraon xpnss 21 (60,990,983) (49,421,202)

Distriuon and markng xpnss 22 (135,992,953) (124,569,612)

Othr oprang xpnss 23 (7,056,707) (1,947,763)

Othr oprang incom 24 7,513,001 12,962,644

Prot from operaons 106,820,289 72,020,604

Financ cost 25 (37,612,526) (53,487,027)

Prot before tax 69,207,763 18,533,577

Taxaon 26 (22,739,889) (4,481,935)

Prot for the year 46,467,874 14,051,642

earnings pr shar - basic and dilutd 33 9.22 2.79




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STATEMENT OF COMPREHENSIVE INCOMEFOR THe YeAR eNDeD SePTeMbeR 30, 2010

2010 2009

Rupees Rups

Prot ar taxaon 46,467,874 14,051,642

Othr comprhnsiv incom for th yar - -

Total comprhnsiv incom for th yar 46,467,874 14,051,642




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CASH FLOW STATEMENTFOR THe YeAR eNDeD SePTeMbeR 30, 2010

2010 2009

Note Rupees Rups

Cash ows from operang acvies

Cash gnratd from opraons 30 214,142,609 118,255,880

Financ cost paid (42,975,863) (49,992,135)

Incom tax paid (9,830,819) (23,535,723)

Rrmnt nts paid (5,314,344) (8,054,172)

Net cash inow /(oulow) from operang acvies 156,021,583 (36,673,850

Cash ows from invesng acvies

Fixd capital xpnditur (13,992,719) (36,263,479)

Sal procds of proprty, plant and quipmnt 2,960,275 9,375,961

Nt dcras/ (incras) in long trm scurity dposits 358,729 (394,148)

Procds from sal of iological assts 632,050 815,999

Net cash oulow from invesng acvies (10,041,665) (26,465,667)

Cash ows from nancing acvies

Rpaymnt of long trm loans - (22,105,260)

Dividnd paid (10,014,167) (4,755,631)

Net cash oulow from nancing acvies (10,014,167) (26,860,891)

Net increase/ (decrease) in cash and cash equivalents 135,965,751 (16,652,708)

Cash and cash equivalents at the beginning of the year (294,453,882) (277,801,174)

Cash and cash equivalents at the end of the year 31 (158,488,131) (294,453,882)




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STATEMENT OF CHANGES IN EQUITYFOR THe YeAR eNDeD SePTeMbeR 30, 2010

Share Share General Accumulated Rupees

capital premium reserve prot Total

balanc as at Sptmr 30, 2008 50,400,000 9,335,878 300,000 200,794,368 260,830,246

Final dividnd for th yar ndd

Sptmr 30, 2008 R 1 pr shar - - - (5,040,000) (5,040,000)

Prot for th yar ndd Sptmr 30, 2009 - - - 14,051,642 14,051,642

balanc as at Sptmr 30, 2009 50,400,000 9,335,878 300,000 209,806,010 269,841,888

Final dividnd for th yar ndd

Sptmr 30, 2009 Rs 2 pr shar - - - (10,080,000) (10,080,000)

Prot for th yar ndd Sptmr 30, 2010 - - - 46,467,874 46,467,874

Balance as at September 30, 2010 50,400,000 9,335,878 300,000 246,193,884 306,229,762




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NOTES TO THE FINANCIAL STATEMENTSFOR THe YeAR eNDeD SePTeMbeR 30, 2010

1. Legal status and nature of business

Th Company is incorporatd in Pakistan and is listd on Karachi, Lahor and Islamaad Stock exchangs.

It is principally ngagd in th manufactur and sal of various farm and confconry products.

2. Basis of preparaon

2.1 Ths nancial statmnts hav n prpard in accordanc with approvd accounng

standards as applical in Pakistan. Approvd accounng standards compris of such

Intrnaonal Financial Rporng Standards (IFRS) issud y th Intrnaonal Accounng

Standards board and Islamic Financial Accounng Standards (IFAS) issud y Instut of

Chartrd Accountants of Pakistan as ar nod undr th Companis Ordinanc, 1984,

provisions of and dircvs issud undr th Companis Ordinanc, 1984. Whrvr th

rquirmnts of th Companis Ordinanc, 1984 or dircvs issud y Scuris and exchang

Commission of Pakistan (SeCP) dir with th rquirmnts of IFRS or IFAS, th rquirmnts

of th Companis Ordinanc, 1984 or th rquirmnts of th said dircvs prvail.

2.2 Standards, interpretaons and amendments to published approved accounng standards.

2.2.1 Amendments and interpretaons to published standards eecve in current year

Th following amndmnts and intrprtaons to xisng standards hav n

pulishd that ar applical to th Companys nancial statmnts covring annualpriods, ginning on or ar th following dats:

- IAS 1 (Prsntaon of Financial Statmnts Rvisd), cv for accounngpriods ginning on or ar July 1, 2009. Th rvisd standard aims to nhancth usfulnss of informaon prsntd in th nancial statmnts including thintroducon of a nw statmnt of comprhnsiv incom that comins all itms ofincom and xpns rcognisd in prot or loss togthr with othr comprhnsivincom. Th applicaon of th rvisd standard will not act th rsults or ntassts of th Company as it is only concrnd with prsntaon and disclosurs.

- Crtain amndmnts to IAS 23 (borrowing Costs) hav n pulishd that ar

applical to th Companys nancial statmnts covring annual priods, ginningon or ar July 1, 2009. Adopon of ths amndmnts would rquir th Companyto capitalis th orrowing costs dirctly ariutal to th acquision, construconor producon of a qualifying asst (on that taks sustanal priod of m to gtrady for us or sal) as part of th cost of that asst. Th opon of immdiatlyxpnsing ths orrowing costs will rmovd. Its adopon will not hav anyimpact on th Companys nancial statmnts.

- IFRS 8, (Oprang Sgmnts) rplacs IAS 14 and is cv from January 1, 2009.

IFRS 8 provids guidanc for disclosur of informaon aout ntys oprangsgmnts, products and srvics, gographical aras in which it oprats, and majorcustomrs. Its adopon rquirs som addional disclosurs ut dos not hav anyimpact on th nancial posion of th company.

- IFRIC 17 (Distriuons of Non-cash Assts to Ownrs), cv from priods ginning

on or ar January 1, 2009. This standard applis to th accounng tratmnt for

distriuon of non-cash assts to ownrs or distriuons that giv ownrs a choic

of rciving ithr non-cash assts or cash altrnav.

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2.2.2 Amendments and interpretaons to published standards eecve in the current year

not applicable to the Company

Th following amndmnts and intrprtaons to xisng standards hav n

pulishd that ar cv in th currnt yar ut ar not applical to th Companys

nancial statmnts:

- IFRS 4 (Insuranc Contracts), cv for priods ginning on or ar January

1, 2009. This standard is applid to accounng for insuranc contracts issud y an

nty, rinsuranc contracts hld y an nty and nancial instrumnts it issus with a

discronary parcipaon fatur.

- IFRIC 15 (Agrmnts for th Construcon of Ral estat), cv for priods ginning

on or ar January 1, 2009. This Intrprtaon applis to th accounng for rvnu

and associatd xpnss y ns that undrtak th construcon of ral stat

dirctly or through sucontractors.

- IFRIC 18 (Transfrs of Assts from Customrs), cv for priods ginning on or ar

January 1, 2009. Agrmnts within th scop of this Intrprtaon ar agrmnts in

which an nty rcivs from a customr an itm of proprty, plant and quipmnt that

th nty must thn us ithr to connct th customr to a ntwork or to provid th

customr with ongoing accss to a supply of goods or srvics, or to do oth.

2.2.3 Amendments and interpretaons to exisng standards that are not yet eecve

Standards and intrprtaons Eecve date

(accounng periodsbeginning on or aer)

IFRIC 09 - Financial Instrumnts January 01, 2013

IFRIC 19 - exnguishing Financial Liailis with quity instrumnts July 01, 2010

3. Basis of measurement

3.1 Ths nancial statmnts hav n prpard undr th historical cost convnon xcpt for

rvaluaon of crtain nancial instrumnts, iological assts and agricultural produc at fair

valus as rfrrd to in nots 4.5 and rcognion of crtain mploy rrmnt nts at

prsnt valu as rfrrd to in not 4.2.

Th companys signicant accounng policis ar statd in not 4. Not all of ths signicantpolicis rquir th managmnt to mak dicult, sujcv or complx judgmnts

or smats. Th following is intndd to provid an undrstanding of th policis th

managmnt considrs crical caus of thir complxity, judgmnt of smaon involvd

in thir applicaon and thir impact on ths nancial statmnts. esmats and judgmnts

ar connually valuatd and ar asd on historical xprinc, including xpctaons of

futur vnts that ar livd to rasonal undr th circumstancs. Ths judgmnts

involv assumpons or smats in rspct of futur vnts and th actual rsults may dir

from ths smats. Th aras involving a highr dgr of judgmnts or complxity or aras

whr assumpons and smats ar signicant to th nancial statmnts ar as follows:

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a) Rerement benets

Th Company uss th valuaon prformd y an indpndnt actuary as th prsnt valu of its

rrmnt nt oligaons. Th valuaon is asd on assumpons as mnond in not 4.2.

b) Provision for taxaon

Th Company taks into account th currnt incom tax law and th dcisions takn y

appllat authoris. Instancs whr th Companys viw dirs from th viw takn y

th incom tax dpartmnt at th assssmnt stag and whr th Company considrs that

its viw on itms of matrial natur is in accordanc with law, th amounts ar shown as

conngnt liailis.

c) Useful lives and residual values of property, plant and equipment

Th Company rviws th usful livs of proprty, plant and quipmnt on rgular asis. Any

chang in smats in futur yars might act th carrying amounts of th rspcv itms

of proprty, plant and quipmnt with th corrsponding ct on th dprciaon charg

and impairmnt.

d) Biological assets

Th Company ass its valuaon upon yild assssmnt prformd y an indpndnt

agricultural xprt and computs fair valu lss smatd point of sals cost to arriv at its

valuaon. Th fair valu lss smatd point of sals cost is asd on factors mnond in

not 4.5.

4. Signicant accounng policies

Th signicant accounng policis adoptd in th prparaon of ths nancial statmnts ar st

out low. Ths policis hav n consistntly applid to all yars prsntd, unlss othrwis

statd.

4.1 Taxaon

Current

Provision of currnt tax is asd on th taxal incom for th yar dtrmind in accordanc

with th prvailing law for taxaon of incom. Th charg for currnt tax is calculatd using

prvailing tax rats or tax rats xpctd to apply to th prot for th yar if nactd. Thcharg for currnt tax also includs adjustmnts, whr considrd ncssary, to provision for

tax mad in prvious yars arising from assssmnts framd during th yar for such yars.

Deferred

Dfrrd tax is accountd for using th alanc sht liaility mthod in rspct of all

tmporary dirncs arising from dirncs twn th carrying amount of assts and

liailis in th nancial statmnts and th corrsponding tax ass usd in th computaon

of th taxal prot.

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Dfrrd tax liailis ar gnrally rcognizd for all taxal tmporary dirncs and

dfrrd tax assts ar rcognizd to th xtnt that it is proal that taxal prots will availal against which th dducl tmporary dirncs, unusd tax losss and tax

crdits can ulizd.

Dfrrd tax is calculatd at th rats that ar xpctd to apply to th priod whn thdirncs rvrs asd on tax rats that hav n nactd or sustanvly nactd y thalanc sht dat. Dfrrd tax is chargd or crditd in th incom statmnt, xcpt in thcas of itms crditd or chargd to quity in which cas it is includd in quity.

4.2 Employee rerement benets

Th main faturs of th schms opratd y th Company for its mploys ar as follows:

(a) Dened benet plans

Th Company oprats an unfundd gratuity schm for all mploys according to th trmsof mploymnt sujct to a minimum qualifying priod of srvic . Annual provision is madon th asis of actuarial valuaon to covr oligaons undr th schm for all mploysligil to gratuity nts irrspcv of th qualifying priod.

Th latst actuarial valuaon for gratuity schm was carrid out as at Sptmr 30, 2010.Projctd Unit Crdit Mthod, using th following signicant assumpons is usd for valuaonof th schm:

- Discount rat 12.5 prcnt pr annum (2009: 12 prcnt pr annum).- expctd rat of incras in salary lvl 11.5 prcnt pr annum (2009: 11 prcnt pr annum).- Avrag xpctd rmaining working lif m of mploys 10 yars.

Th Companys policy with rgard to actuarial gains/losss is asd on th minimum 10%corridor approach mnond undr paragraph 92 of IAS - 19 (employ bnts).

(b) Accumulang compensated absences

Th Company provids accumulang compnsatd asncs, whn th mploys rndrsrvic that incras thir ntlmnt to futur compnsatd asncs.

Provisions ar mad annually to covr th oligaon for accumulang compnsatd asncsfor xcuvs asd on actuarial valuaon and ar chargd to prot.

Th latst actuarial valuaon was carrid out as at Sptmr 30, 2010. Projctd Unit Crdit

Mthod, using th following signicant assumpons is usd for valuaon of accumulangcompnsatd asncs.- Discount rat 12.5 prcnt pr annum (2009: 12 prcnt pr annum).- expctd rat of incras in salary lvl 11.5 prcnt pr annum (2009: 11 prcnt pr annum).- Avrag xpctd rmaining working lif m of mploys 14 yars.

Actuarial gains and losss arising during th yar ar rcognisd immdiatly in accordancwith th provisions of IAS 19 employ nts.

Rrmnt nts ar payal to sta on complon of prscrid qualifying priod of

srvic undr ths schms.

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4.3 Property, plant and equipment

4.3.1 Operang xed assets

Oprang xd assts xcpt frhold land ar statd at cost lss accumulatd

dprciaon and any idnd impairmnt loss. Frhold land is statd at cost lss any

idnd impairmnt loss. Cost in rlaon to crtain proprty, plant and quipmnt

signis historical cost and orrowing cost as rfrrd to in not 4.15.

Dprciaon on all oprang xd assts is chargd to prot on th rducing alanc

mthod so as to writ o th dprcial amount of an asst ovr its smatd usful

lif at th annual rats mnond in not 11.1, ar taking into account th impact of

thir rsidual valus, if considrd signicant.

Th assts rsidual valus and usful livs ar rviwd, at ach nancial yar nd,

and adjustd if th impact on dprciaon is signicant. Th Companys smat of th

rsidual valu of its oprang xd assts as at Sptmr 30, 2010 has not rquird

any adjustmnt as its impact is considrd insignicant.

Dprciaon on addions to oprang xd assts is chargd from th month in which

an asst is acquird or capitalisd whil no dprciaon is chargd for th month in

which th asst is disposd o.

An assts carrying amount is wrin down immdiatly to its rcovral amount if th

assts carrying amount is gratr than its smatd rcovral amount as mnond

in not 4.6.

Susqunt costs ar includd in th assts carrying amount or rcognisd as a

sparat asst, as appropriat, only whn it is proal that futur conomic nts

associatd with th itms will ow to th Company and th cost of th itm can

masurd rlialy. All othr rpair and maintnanc costs ar chargd to incom during

th priod in which thy ar incurrd.

Th gain or loss on disposal or rrmnt of an asst rprsntd y th dirnc

twn th sal procds and th carrying amount of th asst is rcognisd as an

incom or xpns.

4.3.2 Capital work-in-progress

Capital work-in-progrss is statd at cost lss any idnd impairmnt loss. Allxpnditur connctd with spcic assts incurrd during installaon and construcon

priod ar carrid undr capital work-in-progrss. Ths ar transfrrd to oprang

xd assts as and whn ths ar availal for us.

4.4 Intangible assets

Intangil assts rprsnt th cost of computr sowar acquird and statd at cost lss

accumulatd amorsaon and any idnd impairmnt loss. Intangil assts ar amorsd

using th rducing alanc mthod at th rat of 20% so as to writ o th cost of an asst

ovr its smatd usful lif.

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Amorzaon on addions is chargd from th month in which an asst is acquird or capitalizd

whil no amorzaon is chargd for th month in which th asst is disposd o. Amorzaonis ing chargd as mnond in not 12.

An assts carrying amount is wrin down immdiatly to its rcovral amount if th assts

carrying amount is gratr than its smatd rcovral amount as mnond in not 4.6.

4.5 Biological assets and agriculture produce

biological assts compris of livstock and trs. Ths ar masurd at fair valu lss

smatd point-of-sal costs with any rsultant gain/loss ing rcognisd in th prot and

loss account. Fair valu of livstock is dtrmind on th asis of markt prics of livstock of

similar ag, rd and gnc mrit. Fair valu of trs is dtrmind on th asis of markt

prics of similar itms in local aras. Point-of-sal costs includ all costs that ar ncssary to

sll th assts, xcluding costs ncssary to gt th assts to th markt.

Th Company hld 147 animals (2009: 140) including cows, calvs, horss and shp and

smats to ncially own 848 (2009: 860) trs of various kinds including mango, jamolin,

kachnar, crus, amla, spiknard, orh and shsham tc as on Sptmr 30, 2010.

4.6 Impairment of non-nancial assets

Assts that hav an indnit usful lif, for xampl land, ar not sujct to dprciaon/

amorsaon and ar tstd annually for impairmnt. Assts that ar sujct to dprciaon/

amorsaon ar rviwd for impairmnt whnvr vnts or changs in circumstancs

indicat that th carrying amount may not rcovral. An impairmnt loss is rcognisd

for th amount y which th assts carrying amount xcds its rcovral amount. Thrcovral amount is th highr of an assts fair valu lss costs to sll and valu in us.

For th purposs of assssing impairmnt, assts ar groupd at th lowst lvls for which

thr ar sparatly idnal cash ows (cash-gnrang units). Non-nancial assts that

surd an impairmnt ar rviwd for possil rvrsal of th impairmnt at ach rporng

dat.

4.7 Leases

Th Company is th lss.

4.7.1 Operang leases

Lass whr a signicant poron of th risks and rwards of ownrship ar rtaindy th lssor ar classid as oprang lass. Paymnts mad undr oprang lass

(nt of any incnvs rcivd from th lssor) ar chargd to prot on a straight lin

asis ovr th las trm.

4.8 Stores, spares and loose tools

Usal stors, spars and loos tools ar valud principally at moving avrag cost, whil itms

considrd osolt ar carrid at nil valu. Itms in transit ar valud at cost comprising

invoic valu plus othr chargs paid thron.

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4.9 Stock-in-trade

Stock of raw matrials, xcpt for thos in transit, and nishd goods ar valud principally at

th lowr of moving avrag cost and nt ralizal valu.

Cost of raw matrial signis avrag dirct matrial cost.

Finishd goods compris cost of dirct matrials, laour and appropriat manufacturing

ovrhads.

Matrials in transit ar statd at cost comprising invoic valu plus othr chargs paid

thron.

Nt ralisal valu signis th smatd slling pric in th ordinary cours of usinss lss

costs ncssarily to incurrd in ordr to mak a sal.

4.10 Financial instruments

4.10.1 Financial assets

Th Company classis its nancial assts in th following catgoris: at fair valu

through prot or loss, loans and rcivals, availal for sal and hld to maturity.

Th classicaon dpnds on th purpos for which th nancial assts wr acquird.

Managmnt dtrmins th classicaon of its nancial assts at th m of inial

rcognion.

a) Financial assets at fair value through prot or loss

Financial assts at fair valu through prot or loss ar nancial assts hld for trading

and nancial assts dsignatd upon inial rcognion as at fair valu through prot

or loss. A nancial asst is classid as hld for trading if acquird principally for th

purpos of slling in th short trm. Assts in this catgory ar classid as currnt

assts.

b) Loans and receivables

Loans and rcivals ar non-drivav nancial assts with xd or dtrminal paymnts

that ar not quotd in an acv markt. Thy ar includd in currnt assts, xcpt for

maturis gratr than twlv months ar th alanc sht dat, which ar classid

as non-currnt assts. Loans and rcivals compris loans, advancs, dposits and othrrcivals and cash and cash quivalnts in th alanc sht.

c) Available-for-sale nancial assets

Availal-for-sal nancial assts ar non-drivavs that ar ithr dsignatd in this catgory

or not classid in any of th othr catgoris. Thy ar includd in non-currnt assts unlss

managmnt intnds to dispos of th invstmnts within twlv months from th alanc

sht dat.

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d) Held to maturity

Financial assts with xd or dtrminal paymnts and xd maturity, whr managmnt

has th intnon and aility to hold ll maturity ar classid as hld to maturity and ar

statd at amorsd cost.

All nancial assts ar rcognisd at th m whn th Company coms a party to th

contractual provisions of th instrumnt. Rgular purchass and sals of invstmnts ar

rcognisd on trad-dat th dat on which th Company commits to purchas or sll th

asst. Financial assts ar inially rcognisd at fair valu plus transacon costs for all nancial

assts not carrid at fair valu through prot or loss. Financial assts carrid at fair valu

through prot or loss ar inially rcognisd at fair valu and transacon costs ar xpnsd

in th prot and loss account.

Availal-for-sal nancial assts and nancial assts at fair valu through prot or loss ar

susquntly carrid at fair valu. Loans and rcivals and hld-to-maturity invstmnts ar

carrid at amorsd cost using th cv intrst rat mthod.

Gains or losss arising from changs in th fair valu of th nancial assts at fair valu through

prot or loss catgory ar prsntd in th prot and loss account in th priod in which thy

aris. Dividnd incom from nancial assts at fair valu through prot or loss is rcognisd

in th prot and loss account as part of othr incom whn th Companys right to rciv

paymnts is stalishd.

Changs in th fair valu of scuris classid as availal-for-sal ar rcognisd in quity.

Whn scuris classid as availal-for-sal ar sold or impaird, th accumulatd fair

valu adjustmnts rcognisd in quity ar includd in th prot and loss account as gains andlosss from invstmnt scuris. Intrst on availal-for-sal scuris calculatd using th

cv intrst mthod is rcognisd in th prot and loss account. Dividnds on availal-

for-sal quity instrumnts ar rcognisd in th prot and loss account whn th Companys

right to rciv paymnts is stalishd.

Th fair valus of quotd invstmnts ar asd on currnt prics. If th markt for a nancial

asst is not acv (and for unlistd scuris), th Company masurs th invstmnts at cost

lss impairmnt in valu, if any.

Th Company asssss at ach alanc sht dat whthr thr is ojcv vidnc that

a nancial asst or a group of nancial assts is impaird. If any such vidnc xists for

availal-for-sal nancial assts, th cumulav loss is rmovd from quity and rcognisd

in th prot and loss account. Impairmnt losss rcognisd in th prot and loss account onquity instrumnts ar not rvrsd through th prot and loss account. Impairmnt tsng

of trad dts and othr rcivals is dscrid in not 4.11.

Financial assts ar drcognisd whn th rights to rciv cash ows from th assts hav

xpird or hav n transfrrd and th Company has transfrrd sustanally all th risks

and rwards of ownrship.

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4.10.2 Financial liabilies

All nancial liailis ar rcognisd at th m whn th Company coms a party to

th contractual provisions of th instrumnt.

A nancial liaility is drcognisd whn th oligaon undr th liaility is dischargd

or canclld or xpird. Whr an xisng nancial liaility is rplacd y anothr from

th sam lndr on sustanally dirnt trms, or th trms of an xisng liaility ar

sustanally modid, such an xchang or modicaon is tratd as a drcognion

of th original liaility and th rcognion of a nw liaility, and th dirnc in

rspcv carrying amounts is rcognisd in th prot and loss account.

4.10.3 Oseng of nancial assets and nancial liabilies

Financial assts and nancial liailis ar ost and th nt amount is rportd in

th nancial statmnts only whn thr is a lgally nforcal right to st o th

rcognizd amount and th Company intnds ithr to sl on a nt asis or to raliz

th assts and to sl th liailis simultanously.

4.11 Trade debts and other receivables

Trad dts and othr rcivals ar rcognisd inially at invoic valu, which approximats

fair valu, and susquntly masurd at amorsd cost using th cv intrst mthod,

lss provision for douul dts. A provision for douul dts is stalishd whn thr is

ojcv vidnc that th Company will not al to collct all th amount du according to

th original trms of th rcival. Signicant nancial diculs of th dtors, proaility

that th dtor will ntr ankruptcy or nancial rorganisaon, and dfault or dlinquncy inpaymnts ar considrd indicators that th trad dt is impaird. Th provision is rcognisd

in th prot and loss account. Whn a trad dt is uncollcl, it is wrin o against th

provision. Susqunt rcovris of amounts prviously wrin o ar crditd to th prot

and loss account.

4.12 Cash and cash equivalents

Cash and cash quivalnts includs cash in hand, dposits hld at call with anks, othr short-

trm highly liquid invstmnts with original maturis of thr months or lss, and ank

ovrdras. bank ovrdras ar shown within orrowings in currnt liailis as nancs undr

markup arrangmnt on th alanc sht.

Cash and cash quivalnts ar carrid in th alanc sht at cost. For th purpos of cashow statmnt cash and cash quivalnts compris cash in hand, dmand dposits, othr

short trm highly liquid invstmnts that ar radily convrl to known amounts of cash

and which ar sujct to an insignicant risk of chang in valu and nancs undr mark-up

arrangmnts. In th alanc sht, nancs undr mark-up arrangmnts ar includd in

currnt liailis.

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4.13 Share capital

Ordinary shars ar classid as quity and rcognisd at thir fac valu. Incrmntal costs

dirctly ariutal to th issu of nw shars ar shown in quity as a dducon, nt of tax.

4.14 Borrowings

borrowings ar rcognisd inially at fair valu, nt of transacon costs incurrd. borrowings

ar susquntly statd at amorsd cost, any dirnc twn th procds (nt of

transacon costs) and th rdmpon valu is rcognisd in th prot and loss account ovr

th priod of th orrowings using th cv intrst mthod. Financ costs ar accountd

for on an accrual asis and ar rportd undr accrud nanc costs to th xtnt of th

amount rmaining unpaid.

borrowings ar classid as currnt liailis unlss th Company has an uncondional right

to dfr slmnt of th liaility for at last twlv months ar th alanc sht dat.

4.15 Borrowing costs

borrowing costs incurrd for th construcon of any qualifying asst ar capitalisd during th

priod of m that is rquird to complt and prpar th asst for its intndd us. Othr

orrowing costs ar xpnsd in th prot and loss account in th priod in which thy aris.

4.16 Trade and other payables

Trad and othr payals ar rcognisd inially at fair valu and susquntly masurd

at amorsd cost using th cv intrst mthod. exchang gains and losss arising ontranslaon in rspct of liailis in forign currncy ar addd to th carrying amount of th

rspcv liailis.

4.17 Provisions

Provisions ar rcognizd whn th Company has a prsnt lgal or construcv oligaon

as a rsult of past vnts, it is proal that an oulow of rsourcs modying conomic

nts will rquird to sl th oligaon and a rlial smat of th amount can

mad. Provisions ar rviwd at ach alanc sht dat and adjustd to rct th currnt

st smat.

4.18 Derivave nancial instruments

Drivavs ar inially rcognisd at fair valu on th dat a drivav contract is ntrd into

and ar susquntly rmasurd at thir fair valu. Th mthod of rcognizing th rsulng

gain or loss dpnds on whthr th drivav is dsignatd as a hdging instrumnt, and if

so, th natur of th itm ing hdgd. Th Company dos not dsignat drivavs as cash

ow hdgs.

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4.19 Revenue recognion

Rvnu from sals is rcognisd on dispatch of goods to customrs.

Rturn on dposits is rcognisd on a m proporon asis taking into account th amounts

outstanding and th rats applical thron.

4.20 Foreign currency transacons and translaon

a) Funconal and presentaon currency

Itms includd in th nancial statmnts of th Company ar masurd using th

currncy of th primary conomic nvironmnt in which th Company oprats (th

funconal currncy). Th nancial statmnts ar prsntd in Pak Rups, which is thCompanys funconal and prsntaon currncy.

b) Transacons and balances

Forign currncy transacons ar translatd into Pak Rups using th xchang rats

prvailing at th dats of th transacons. Forign xchang gains and losss rsulng

from th slmnt of such transacons and from th translaon at yar-nd xchang

rats of montary assts and liailis dnominatd in forign currncis ar rcognizd

in th prot and loss account. All non-montary itms ar translatd into rups at

xchang rats prvailing on th dat of transacon or on th dat whn fair valus ar

dtrmind.

4.21 Dividend

Dividnd distriuon to th Companys mmrs is rcognisd as a liaility in th priod in

which th dividnds ar approvd.

2010 2009

Rupees Rups

5. Issued, subscribed and paid up capital

2010 2009

(Number of Shares)

1,417,990 1,417,990 Ordinary shars of Rs 10 ach fully paid in cash 14,179,900 14,179,900

44,020 44,020 Ordinary shars of Rs 10 ach issud as fully

paid for considraon othr than cash 440,200 440,200

3,577,990 3,577,990 Ordinary shars of Rs 10 ach issud as fully

paid onus shars 35,779,900 35,779,900

5,040,000 5,040,000 50,400,000 50,400,000

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2010 2009

Note Rupees Rups6. Reserves

Movmnt in and composion of rsrvs is as follows:

Capital Reserve

- Shar prmium 6.1 9,335,878 9,335,878

Revenue

- Gnral rsrv 300,000 300,000

9,635,878 9,635,878

6.1This rsrv can ulisd y th Company only for th purposs spcid in scon 83(2) of thCompanis Ordinanc, 1984.

2010 2009

Note Rupees Rups

7. Deferred liabilies

Ths ar composd of:

Dfrrd taxaon 7.1 47,253,906 28,478,162

Rrmnt and othr nts 7.2 28,565,965 22,000,528

75,819,871 50,478,690

7.1 Deferred taxaon

Th liaility for dfrrd taxaon compriss tmporary dirncs rlang to:

Acclratd tax dprciaon and amorzaon 58,375,206 60,240,048

Rrmnt nts (9,545,552) (7,376,821)

Othr provisions (1,575,748) -

Unusd tax losss - (6,487,732)

Minimum tax availal for carry forward - (17,897,333)

47,253,906 28,478,162

7.2 Rerement and other benets

Sta gratuity 7.2.1 25,862,946 20,784,055

Accumulang compnsatd asncs 2,703,019 1,216,473

28,565,965 22,000,528

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2010 2009

Rupees Rups

7.2.1 Sta gratuity

Th amounts rcognizd in th alanc sht ar dtrmind as follows:

Prsnt valu of dnd nt oligaon

as at Sptmr 30, 2010 31,865,145 26,098,448

Unrcognisd actuarial loss (6,002,199) (5,314,393)

Liaility as at Sptmr 30, 2010 25,862,946 20,784,055

Liaility as at Octor 1, 2009 20,784,055 17,507,567

Charg to prot and loss account8,256,471

9,286,316bnts paid y th Company (3,177,580) (6,009,828)

Liaility as at Sptmr 30, 2010 25,862,946 20,784,055

Th movmnt in th prsnt valu of dnd nt oligaon is as follows:

Prsnt valu of dnd nt oligaon as at Octor 1 26,098,448 27,671,785

Srvic cost 4,854,202 4,672,562

Intrst cost 3,131,814 3,874,050

bnts paid (3,177,580) (6,009,828)

exprinc loss 958,261 (4,110,121)

Prsnt valu of dnd nt oligaon

as at Sptmr 30 31,865,145 26,098,448

Th prsnt valu of dnd nt oligaon and th xprinc adjustmnt on oligaon

is as follows:

2010 2009 2008 2007 2006

( Rupees in thousands)

As at September 30

Prsnt valu of dnd nt oligaon 31,865 26,098 27,672 19,557 13,655

exprinc adjustmnt on oligaon 958 (4,110) 4,182 4,360 1,479

8. Short term running nances - secured

Short trm running nancs, availal from commrcial anks undr mark-up arrangmnts amountto Rs 390 million (2009: Rs 450 million). Th rats of mark-up rang from Rs 0.3769 to Rs 0.4000 pr

Rs 1,000 pr dim or part throf on th alanc outstanding and is payal quartrly.

Of th aggrgat facility of Rs 140 million (2009: Rs 140 million) for opning lrs of crdit and Rs 42

million (2009: Rs 22 million) for guarants, th amount ulisd at Sptmr 30, 2010 was Rs 91.549

million (2009: Rs 34.239 million) and Rs 17.200 million (2009: Rs 19.022 million) rspcvly. Th

guarants of Rs. 20 million ar a su-facility of th running nanc facility otaind i.. Rs 390 million.

Th aggrgat short trm facilis ar scurd y a hypothcaon of stors and spars, stock in

trad, trad dts and a charg on th prsnt and futur xd assts of th Company.

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2010 2009

Note Rupees Rups9. Trade and other payables

Trad crditors 9.1 45,055,894 37,728,534

Accrud liailis 32,357,358 20,806,010

Advancs from customrs 5,212,518 14,911,266

Intrst fr dposits rpayal on dmand 125,000 75,000

Du to rlatd pars 9.2 263,785 201,993

Sals tax payal 11,940,721 9,139,547

Spcial xcis duty payal 651,418 907,645

Workrs prot parcipaon fund 9.3 3,857,767 995,403

Workrs wlfar fund 2,138,397 379,080

Unclaimd dividnds 350,202 284,369

Othrs 1,301,349 2,387,353

103,254,409 87,816,200

9.1 Trad crditors includs amounts of Rs. 14.571 million du to rlatd partis (2009: Rs.

23.942 million).

9.2 Ths rlat to normal usinss of th Company and ar intrst fr.

9.3 Workers prot parcipaon fund

Opning alanc 995,403 724,099Provision for th yar 23 3,735,110 995,403

Intrst for th yar 25 165,137 44,755

4,895,650 1,764,257Lss: Paymnts mad during th yar (1,037,883) (768,854)

Closing alanc 3,857,767 995,403

10. Conngencies and commitments

10.1 Conngencies

Th company has issud guarant in favour of Sui Northrn Gas Piplins Limitd on account

of paymnt of dus against gas consumpon amounng to Rs 19.022 million (2009: Rs 19.022

million).

10.2 Commitments

Commitmnts in rspct of capital xpnditur ar Nil (2009: Nil).

Lrs of crdit othr than capital xpnditur ar Rs. 91.549 million (2009: Rs. 6.884

million).

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2010 2009

Note Rupees Rups

11. Property, plant and equipment

Oprang xd assts 11.1 302,924,568 316,490,986

Capital work-in-progrss 11.2 1,332,093 5,196,841

304,256,661 321,687,827

11.1 Operang xed assets

Land Buildings

On freehold On leasehold Plant and Vehicles Furniture Electric Computer Total

Freehold land land machinery and ngs Installaons Hardware

Net carrying value basis

Year ended September 30, 2010

Opning nt ook valu (NbV) 15,547 32,833,114 1,251,431 256,611,105 16,477,795 822,313 6,728,749 1,750,932 316,490,986Addions (at cost) - 362,097 - 11,531,283 5,095,176 109,727 424,834 334,350 17,857,467

Disposals (at NbV) - - - (955,410) (1,120,845) - (43,021) (26,181) (2,145,457)

Dprciaon charg - (3,283,312) (125,142) (21,656,348) (2,241,935) (183,833) (1,376,580) (411,278) (29,278,428)

Closing nt ook valu (NbV) 15,547 29,911,899 1,126,289 245,530,630 18,210,191 748,207 5,733,982 1,647,823 302,924,568

Gross carrying value basis

As at September 30, 2010

Cost 15,547 65,892,903 4,091,337 472,935,781 27,302,650 3,103,333 15,958,050 8,251,136 597,550,737

Accumulatd dprciaon - (35,981,004) (2,965,048) (227,405,151) (9,092,459) (2,355,126) (10,224,068) (6,603,313) (294,626,169)

Nt ook valu (NbV) 15,547 29,911,899 1,126,289 245,530,630 18,210,191 748,207 5,733,982 1,647,823 302,924,568

Depreciaon rate % per annum - 10 10 10 20 20 20 20



Opning nt ook valu (NbV) 15,547 31,634,321 1,390,479 246,839,005 14,986,685 976,148 6,694,545 1,820,285 304,357,015

Addions (at cost) - 4,575,817 - 33,522,539 9,510,784 43,700 1,586,833 369,975 49,609,648

Disposals (at NbV) - - - (2,066,789) (5,433,856) (200) (58,999) (36,800) (7,596,644)

Dprciaon charg - (3,377,024) (139,048) (21,683,650) (2,585,818) (197,335) (1,493,630) (402,528) (29,879,033)

Closing nt ook valu (NbV) 15,547 32,833,114 1,251,431 256,611,105 16,477,795 822,313 6,728,749 1,750,932 316,490,986

Gross carrying value basis


Cost 15,547 65,530,806 4,091,337 463,698,333 25,671,420 2,993,606 15,599,443 7,949,286 585,549,778

Accumulatd dprciaon - (32,697,692) (2,839,906) (207,087,228) (9,193,625) (2,171,293) (8,870,694) (6,198,354) (269,058,792)

Nt ook valu (NbV) 15,547 32,833,114 1,251,431 256,611,105 16,477,795 822,313 6,728,749 1,750,932 316,490,986

Depreciaon rate % per annum - 10 10 10 20 20 20 20

11.1.1 Th cost of fully dprciatd assts which ar sll in us as at Sptmr 30, 2010 is Rs 28.804 million (2009: Rs

30.287 million).

11.1.2 Th dprciaon charg for th yar has n allocatd as follows:

2010 2009

Note Rupees Rups

Cost of sals 20 25,064,802 25,199,722

Administraon xpnss 21 1,971,691 2,093,493

Distriuon and markng xpnss 22 2,241,935 2,585,818

29,278,428 29,879,033

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11.1.3 Disposal of operang xed assets

Dtail of oprang xd assts sold during th yar is as follows:

2010

Parculars Accumulated Book Sale Mode of

of assets Sold to Cost depreciaon value proceeds disposals

Vehicles Employee

Waqas Zafar 675,400 250,620 424,780 301,824 Company policy

Outsiders

Nawaz Samaryal 1,248,054 852,518 395,536 765,000 Ngoaon

Rustam 928,345 733,657 194,688 705,000 Ngoaon

Plant and machinery Ali Tradrs 1,294,825 832,416 462,409 233,700 Ngoaon

Ali Tradrs 132,200 59,963 72,237 106,450 NgoaonM/S IGI Insuranc Limitd 862,500 441,939 420,561 397,500 Insuranc Claim

Other assets with book value less than Rs. 50,000 715,184 539,938 175,246 450,801

5,856,508 3,711,051 2,145,457 2,960,275

Dtail of oprang xd assts sold during th yar is as follows:

2009

Parculars Accumulated Book Sale Mode of

of assets Sold to Cost depreciaon value proceeds disposals

Vehicles Employee

Shikh Navd Ahmd 386,400 175,480 210,920 460,000 Company Policy

Mhoo Alam 336,980 336,607 373 150,000 Company Policy

Azam Khan 635,400 192,936 442,464 600,000 Company Policy

Kalm Ullah Rai 1,743,180 348,636 1,394,544 1,515,000 Company Policy

Kalm Ullah Rai 800,000 420,736 379,264 258,086 Company Policy

Outsiders

M.Tahir 353,090 215,864 137,226 393,000 Ngoaon

Rana Adul Rhman 473,090 290,082 183,008 317,000 Ngoaon

M/S IGI Insuranc Limitd 390,000 200,869 189,131 230,000 Insuranc Claim

M Yaqoo 520,480 233,314 287,166 355,000 Ngoaon


Nadm bu 267,230 231,363 35,867 220,000 Ngoaon


M/S IGI Insuranc Limitd 1,355,780 390,164 965,616 1,100,000 Insuranc Claim

Dr Hamza 906,240 225,553 680,687 900,000 Ngoaon


Plant and machinery Shikh Zahid 323,605 278,750 44,855 172,600 Ngoaon

Procss Plant & Machinry Limitd 1,966,039 539,235 1,426,804 2,008,875 Trad in

Other assets with book value less than Rs. 50,000 944,972 253,843 691,129 145,400

12,067,796 4,471,152 7,596,644 9,375,961

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2010 2009

Rupees Rups11.2 Capital work in progress

Advancs to supplirs - considrd good - 504,000

Civil Works 1,332,093 -

Plant and machinry - 4,692,841

1,332,093 5,196,841

12. Intangible Assets

Rupees


Year ended September 30, 2010Opning nt ook valu (NbV) 1,325,725

Amorsaon charg (265,145)

Closing nt ook valu (NbV) 1,060,580

Gross Carrying Value basis

Cost 2,722,420

Accumulatd Dprciaon (1,661,840)

Nt ook valu (NbV) 1,060,580

Dprciaon rat % pr annum 20



Opning nt ook valu (NbV) 1,657,156

Amorsaon charg (331,431)

Closing nt ook valu (NbV) 1,325,725


Cost 2,722,420

Accumulatd Dprciaon (1,396,695)

Nt ook valu (NbV) 1,325,725

Dprciaon rat % pr annum 20

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12.1 Th amorzaon charg for th yar has n allocatd as follows:

2010 2009 Note Rupees Rups

Cost of sals 20 165,888 207,360

Administraon xpnss 21 99,257 124,071

265,145 331,431

13. Biological assets

Livstock 5,155,933 3,807,600

Trs 1,720,000 1,590,000

6,875,933 5,397,600

14. Stores, spares and loose tools

Gnral Stors 2,745,315 2,560,863

enginring Stors 10,429,863 10,220,418

13,175,178 12,781,281

Lss: Provision for osolt itms

- enginring Stor 14.1 (748,329) -

12,426,849 12,781,281

14.1 Provision for obsolete items - Engineering Store

Opning balanc - -

Add: Provision for th yar 748,329 -

Closing alanc 748,329 -

15. Stock in trade

Raw matrials (including in transit Rs. 13.010 million)

(2009: Nil) 15.1 89,632,486 120,354,053Packing matrials 83,007,687 88,781,063

Finishd goods 60,277,747 51,247,411

232,917,920 260,382,527

Lss: Provision for osolt itms

- Raw Matrial 15.2 (2,000,000) -

230,917,920 260,382,527

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15.1 Includd in raw matrials ar juic and packrits valuing Rs Nil (2009: Rs 5.198 million

yearly 2010

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