Aisha Steel Annual Report 2015

to
The Steel Industry
Aisha Steel
Annual Report
2015
Contents
28
Vision and Mission Statement

Overall Corporate Strategy
Core values
Code of Conduct
Company Information
Company Profile
SWOT Analysis
Company Organogram
Directors Profile
Key Executives Profile
Board and Management Committees
Evaluation of Boards Performance &
Criteria Used
CEOs Performance Review
29
39
40
41
51
Directors Report
Statement Showing Attendance at Board Meeting
Statement Showing Bought and Sold
Pattern of Shareholding
Notice of Eleventh Annual General Meeting
52
53
54
55
57
59
61
62
63
Aisha Steel at a Glance

Financial & Business Highlights
DuPont Analysis
Graphical Representation
Horizontal Analysis of Financial Statements
Vertical Analysis of Financial Statements
Summary of Cash Flow Statement
Statement of Value Addition & Distribution
Share Price/ Volume Analysis
66
Auditors Review Report to the Members on

Statement of Compliance with the Code of
Corporate Governance
Statement of Compliance with the Code of
Corporate Governance
Report of the Board Audit Committee
Auditors Report to the Members
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Statements of Changes in Equity
Notes to the Financial Statements
67
69
72
73
74
75
76
77
107
108
Corporate Calendar of Major Events

List of Abbreviations
Form of Proxy
Company Overview
Messages for Stakeholders
Financial Highlights
Financial Statements
Other Information
Aisha Steel Mills Limited
03
05
07
09
12
13
14
15
16
20
24
27
02
Vision
To be a world class manufacturer of Cold

Rolled Steel.
Mission
Annual Report 2015
To become an efficient producer of Cold

Rolled Steel while serving interests of all
stakeholders.
03
Overall Corporate Strategy

Our corporate strategy entails
producing the highest quality of
products benefitting all
stakeholders. The company
emphasizes on transparency,
building greater standards for
ethical values. ASML focuses on its
team and believes in regular
training and development of its
human resource given the
technologically advanced nature of
ASMLs plant and machinery.
There is a strong commitment for continuous improvement of each
process in order to optimize efficiency.
We strongly adhere to the following to be in line with the global
best practices:
Annual Report 2015
05
Value creation for all stakeholders while maintaining a strong

competitive position;
Keep a strong focus on the long run sustainable advantages;
Develop and strengthen a transparent and inventive culture
while encouraging ethical values;
Ensuring that corporate strategy passes throughout the
organization and is inculcated across the Company;
Core Values
Our People
We are an equal opportunity employer. Discrimination on
any grounds is fundamentally unacceptable.
Integrity
Key success for any business fosters in a transparent
environment based on ethical values.
Health, Safety & Environment

The Company strongly endorses and emphasizes on
managing resources ensuring safety within and beyond its
own facilities.
Our values are based on highest integrity, which

determines the way we work, leading to our well-founded
reputation.
ASML stands committed to carry out its business in a

sustainable manner to promote preservation of the
environment.
Annual Report 2015
Regulatory Compliance & Corporate Governance

The Company remains committed to high standards of
corporate governance, while adhering to the applicable
laws and regulations.
07
Excellence & Efficiency

Efficiencies, appropriate risk management measures and
pricing strategies should enable profitable operations and
good shareholder returns in all market scenarios.
At ASML, our conviction for excellence emerges with a
passion to provide our customers with CRC comparable
with international standards.
Code of Conduct
Being a highly responsible corporate, Aisha Steel
Mills Ltd. expects its employees to uphold and
enhance the reputation of the company by:
Maintaining an unimpeachable standard of integrity in
all their business relationships both inside and outside
the company.
Fostering the highest standard of conduct and
competence amongst those for whom they are
responsible.
Ensuring transparency in business transaction, and
rejecting any business practice, which might be deemed
to be improper.
Promoting fair business practices and ensuring
compliance with legal and regulatory requirements.
In applying these rules, employees should use the
following guidelines:
Annual Report 2015
1. Conflict of Interest
Any personal interest, which may affect or might
reasonably be deemed by others to affect an
employees impartially, should be declared up front in
writing.
The company property must not be used for personal
work unless specific permission is obtained.
Each staff member is employed in the company on a full
time basis and therefore, they should not be involved,
directly or indirectly, in any vacation, business or
commercial activity. Any departure from this can only be
made with the written permission the Chief Executive
Officer.
09
2. Confidentiality and Accuracy of Information

The confidentiality of information received in the course
of business must be respected and never be used for
personal gain; information given in the course of
business must be honest and never designed to
mislead.
Further, all company affairs are to be treated as
confidential and should not be discussed with third
parties not only during service with the company, but
even after departing from service. Interaction with
competitors beyond the approved level will be regarded
as gross misconduct.
3. Gifts
All members are forbidden to accept gifts or borrow
money from another member of the company or from
Showroom Dealers, Vendors or a customer of ASML.
4. Proper Recording of Funds, Assets, Receipts and

Disbursements
I. All funds, assets, receipts and disbursements should be
properly recorded in the books of the company. In
particular, no funds or accounts should be established
or maintained for purposes that are not fully and
accurately reflected in the books and records of the
company.
II. In principle, all resources and supplies telephone,
printing, internet, office van, stationary, other supplies
and most importantly your office time etc. are for official
use.
5. Health & Safety
Every staff member should take reasonable care to
ensure the health and safety of him / her and others
who may be affected by his / her acts at work.
6. Environment
To preserve and protect the environment, all staff
members should:
Design and operate the companys facilities and
processes so as to ensure the trust of adjoining
communities.
Promote conservation of resources and waste
minimization.
Strive continuously to improve environment awareness
and protection.
Help assist in ensuring minimum wastage of resources.
7. Work Place Harassment
The staff will maintain an environment that is free from
harassment and in which all employees are equally
respected.
8. Legal Proceedings
It is essential that a staff member, who becomes
involved in legal proceedings, whether civil or criminal,
should immediately inform his superior with a copy to
the CEO in writing.
Company Overview
Company Information
Audit Committee
Mr. Kashif A.Habib - Chairman
Mr. Hasib Rehman - Member
Mr. Nasim Beg - Member
Mr. Kamran Ali Kazim - Member
Registered Address
Arif Habib Centre, 23 - M.T. Khan Road,
Karachi Pakistan.
website: www.aishasteel.com
Plant Address
DSU - 45, Pakistan Steel
Down Stream Industrial Estate,
Bin Qasim, Karachi - Pakistan.
Auditors
A.F. Ferguson & Co., Chartered
Accountants, State Life Building No.1-C, I.I
Chundrigar Road, Karachi.
Share Registrar Department
Central Depository Company of Pakistan,
CDC, House,
99-B, SMCHS, Shahrae Faisal, Karachi.
Phone: 92-21-111-111-500
Legal Advisor
- Mr. Ajmal Awan (Sattar & Sattar Advocates)
- Bawaney & Partners
Bankers
Allied Bank Ltd.
Askari Bank Ltd.
Bank Alfalah Ltd.
Bank Islami Pakistan Ltd.
Faysal Bank Ltd.
JS Bank Ltd.
Habib Metropolitan Bank Ltd.
Habib Bank Ltd.
MCB Bank Ltd.
National Bank of Pakistan
NIB Bank Ltd.
Pak China Investment Company Ltd.
Saudi Pak Ind. & Agr. Inv. Co. Ltd.
Silk Bank Ltd.
Summit Bank Ltd.
Sindh Bank Ltd.
Standard Chartered Bank (Pakistan) Ltd.
The Bank of Khyber
The Bank of Punjab
Board of Directors
Mr. Arif Habib, Chairman
Mr. Shinpei Asada
Mr. Hasib Rehman
Mr. Nasim Beg
Mr. Kashif A.Habib
Mr. Muhammad Ejaz
Mr. Khalid S. Tirmizey
Mr. Kamran Ali Kazim
Dr. Munir Ahmed, Chief Executive Officer
12
Company Overview
Strengths
Swot Analysis
01
03
Swot
Opportunities
02
Weakness
04
Threat
S W O T
Sixteen exclusive Dealer

Partner(s) supplying
CRC all-over Pakistan;
Experienced
Management;
Successful track record
of envisaging and
executing projects;
State of Art Plant;
Quality equivalent to
international standards;
Weakness
Highly Leveraged;
Limited Product(s);
Risk of Reduction in
Import Tariff;
Strapped Cash flows
due to infancy stage of
ASML;
Opportunities
High Domestic
Demand;
Internationally
Competitive Price;
Growth in various
segments to accelerate
steel sector growth;
Threat
Adverse Foreign
Exchange movement
may affect imports and
operational profitability;
Business Risk /
Off-take Risk;
Competition from other
new organized and
unorganized market
players;
Strengths
14
Company Organogram
Shareholders
Board of Directors
Board Audit
Committee
Board Human
Resource & Remuneration
Committee
Company Secretary
Internal
Audit
Chief Executive
Officer
Annual Report 2015
Finance and
Corporate
15
Sales and
Marketing
Production and
Production Planning
Engineering/
Maintenance
Supply
Chain
Informaiton
Technology
Human
Resource
Administration
and Security
Quality
Assurance
Company Overview
Board & Management Committees

Based on the listing requirements and to ensure good
corporate governance for our stakeholders, various
committees have been formed at both the Board and
Management level. Majority members of the board are
non executive directors.
Board Committees
Board Audit Committee
The audit committee remains responsible for

recommending to the Board of Directors the appointment of
external auditors by the Companys shareholders and
considers any questions of resignation or removal of
Name
external auditors, audit fees and provision by external

auditors of any service to the Company in addition to audit
its financial statements.
No of meetings
held during the year
Mr. Kashif A. Habib Chairman

Mr. Nasim Beg - Member (inducted during the year)
Mr. Kamran A. Kazim - Member (inducted during the year)
Mr. Muhammed Ejaz (Outgoing Member)
4
4
4
4
4
Meetings
attended
4
2
2
Leave of absence
2
i.
ii.
iii.
iv.
v.
vi.
To determine appropriate measures to safeguard

Company assets;
Review of preliminary announcements of results prior to
publication;
Review of financial statements (quarterly, half yearly and
yearly) prior to the approval by the Board of Directors
with major emphasis on:
a. Significant adjustments resulting from the audit;
b. Major judgment areas;
c. Going concern assumption;
d. Any change in accounting policies and practices;
e. Compliance with applicable accounting standards,
and
f. Compliance with listing regulations and other
statutory and regulatory requirements;
Facilitating the external audit and discussion with
external auditors of major observations arising from the
interim and final audits and any matter that the auditors
may wish to highlight (in the absence of Management,
where necessary);
Review of Management Letter issued by external
auditors letter and managements response thereto;
Ensuring coordination between the internal and external
auditors of the Company;
vii. Review of the scope and extent of the internal audit and
ensuring that the internal audit function has adequate
resources and is appropriately placed within the
Company;
viii. Consideration of major findings of internal investigations
and Managements response thereto;
ix. Ascertaining that the internal control system including
financial and operational controls, accounting system
and reporting structure are adequate and effective;
x. Instituting special projects value for money studies or
other investigations or any matter specified by the Board
of Directors in consultation with the CEO and to
consider remittance of any matter to the external
auditors or to any external body;
xi. Determination of compliance with the relevant statutory
requirements;
xii. Monitoring compliance with the best practice of
corporate governance and identification of significant
violations thereof;
xiii. Consideration of any other issue of matter as may be
assigned by the Board of Directors;
In the absence of strong grounds to proceed otherwise, the Board of Directors acts in accordance with the
recommendations of the Audit Committee in the following matters:
24
Board Human Resource &

Remuneration Committee
The role of the HR & R committee is to assist the directors
in its oversight of the evaluation and approval of the
employee benefit plans, welfare projects and retirement
involvement.
The committee will recommends any adjustments which are
fair and required to attract/retain high caliber staff for
consideration and approval. The committee has the
following responsibilities, powers, authorities and discretion:
Name
i.
Conduct periodic reviews of the good performance

awards, bonuses, long term service award policy and
safety awards for safe plant operations.
ii. Conduct periodic reviews of amount and forms of
reimbursement for terminal benefits in case of
retirement and death of any employee in relation to
current norms.
No of meetings
held during the year
Mr. Arif Habib Chairman

Mr. Muhammad Ejaz - Member
Mr. Shinpei Asada - Member
1
1
1
1
iii. Consider any changes to the companys retirement

benefit plans including gratuity, pension, post-retirement
medical treatment, based on actuarial report,
assumptions and funding recommendations.
iv. Review organizational policies concerning
housing/welfare schemes, scholarships and incentives
for outstanding performance.
v. Ensure in consultation with the CEO that succession
plans are in place and review such plans at regular
intervals for those executives whose appointment
requires board approval (under code of corporate
governance), namely the CFO, the Company Secretary
and the Head of Internal Audit including the terms of
Meetings
attended
1
Leave of absence
1
1
appointment and remuneration package in accordance

with the market positioning.
vi. Review and recommend compensation/benefits for the
Chief Executive Officer.
The committee meets on as required basis or when directed
by the board of directors. The secretary sets the agenda,
time, date and venue of the meeting in consultation with the
chairman of the committee. The head of HR acts as
secretary of the committee and submit its minutes of the
meeting duly signed by the chairman. These minutes are
then circulated to the board of directors.
Management Committees
Annual Report 2015
Management Executive Committee (Mancom)
25
Dr. Munir Ahmed-Chairman
Mr. Tahir Iqbal-Member
Mr. Nasir Feroze Bhatty-Member
Mr. Mohsin Lodhi-Member
Mr. Syed Ghulam Arif Hasni-Member
Mr. Khurram Abbas-Member
Ms. Hina Akhtar-Member
Mr. Waseem Saeed-Member
Mr. Khawar A Siddiqui-Member
MANCOM conducts its business under the guidance of the CEO. The Committee is
represented by the heads of all the department of the Company. MANCOM meeting
is held monthly to discuss and review the ongoing business operations.
Committee formed: December 2011

No of meetings held till Year end: 12
Directors Report
Dear Fellow Shareholders
The Directors of Aisha Steel Mills Limited (the

Company) are pleased to present the Annual Report
of the Company and the audited financial statements
for the year ended June 30, 2015 together with
auditors report thereon and a brief overview of
financial and operational performance of the
Company.
Pakistan Economy
The Pakistan economy is benefitting from low oil and
commodity prices translating into low inflation and a sharp
reduction in interest rates. Additionally, the Law & order
situation in the country improved significantly with the
implementation of the National Action Plan. This has
increased investor confidence leading to enhanced
economic activity. A major development in this regards is the
announcement of the China-Pakistan Economic Corridor
(CPEC). Action is also under way for setting up power
projects based on coal, hydel and wind to mitigate demand
and supply gap.
Regulatory Issues Faced by Domestic CRC

Producers
An issue that continues to hurt domestic industry is the
miss-declarations by a few unscrupulous traders. In the case
of the domestic CRC manufacturers, there is significant

abuse by such traders under the China-Pak FTA;
additionally, the Government has imposed 5%, custom duty
on the Companys raw material, i.e., Hot Rolled Coils (HRC)
through the 2014 Federal Budget. This is in contrast to the
Governments commitment to encourage investment in the
CRC manufacturing plants given in FY2005-06, when
Custom Duty for CRC manufacturers was reduced from 5%
to 0% As a result two new CRC plants including Aisha Steel
Mills were set up.
The Government needs to provide duty protection to
domestic CRC manufacturers. Those countries which have
provided due protection to their steel sector have been able
to grow and subsequently become net exporters. It is also a
well-known fact that countries having an established steel
industry progress faster as steel is the basic raw material for
engineering industry in general and construction industry in
particular.
Market Share
Your Company became the largest supplier of CRC in the market.

The following table shows market share of three domestic CRC
manufacturers:
Annual Report 2015
CRC Manufacturer
29
2012-13
2013-14
2014-15

International Steel Limited
Pakistan Steel Mills*
71,810
76,500
15,000
127,384
122,823
10,000
134,272
69,473
Nil
Domestic production total
160,182
237,893
203,745
Note *: Pakistan Steel Mills data is based on market estimates.
2014-15
%
66%
34%
0%
CRC related market saw three major developments in the

year under review. The Yamaha Motorcycle manufacturing
plant set up at Port Qasim commenced production of 100cc
and higher motor cycles for the domestic as well as exports
purposes. Marubeni and Dawood Engineering are putting
up a Coil Service Centre at Port Qasim. This will be
Pakistans first Coil Service Centre and will cater for
commercial as well as high end OEM market. Both these
initiatives will increase domestic consumption of CRC by
10,000 to 30,000MT per annum. Lastly, International Steel
Limited has completed work on the second GI line. The CRC
production capacity is also being enhanced. These
developments are expected to provide stability against
smuggling and other unscrupulous importers.
Rights Share Issue & Share Price

In order to strengthen the balance sheet of your Company,
the Board of Directors approved one for two Rights Issue in
shape of Cumulative Convertible Voting Preference Shares
which was subsequently unanimously approved in Extra
Ordinary Shareholders Meeting. The structure of Rights
Shares has been made lucrative. Each Preference Share is
convertible into Common Shares of ASML any time after
one year from the date of issuance. The right issue process
has been completed with the injection of Rs.1.7 billion into
the Company.
Companys Operations
Financial year 2014-15 is the second full year of operations
for your Company. During this period, ASML operated at
61% (2014: 58%) capacity utilization and produced 134,272
Metric Tons (2014: 127,384 Metric Tons) with total sales of
138,923 Metric Tons (2014: 126,129 Metric Tons).
Your management has started a program to recognize
those ASML team members who come up with such
suggestions. This is resulting in a culture of ownership
throughout the hierarchy of the ASML management. As the
cost of electricity has gone up by over 75% during the last
year, special emphasis was given on energy saving
initiatives. This included installation of energy metering
system, VFD motors, optimization of production planning,
setting up minimum air-conditioning at 26oc, etc. These
measures have resulted in curtailing electricity consumption
during the year.
Other cost saving measures includes alternate sourcing of
quality spares from component manufacturers directly
instead of buying through OEMs. Setting up of an in house
repair work shop for jobs requiring quick turnaround.
Vendors have been shortlisted for maintenance work not

feasible to be carried out in house. Localization of
consumable spares will also result in substantial savings.
Sales & Marketing

ASML has a Sales & Distribution Agreement with Mitsubishi
Pakistan to sell 100% of ASMLs product within Pakistan via
two channels namely: Direct Sales, and Sales via Dealers.
At ASML, we believe that CRC is a specialized product and
therefore requires commitment and dedication throughout
the distribution channel. Keeping this in mind, ASML decided
to have exclusive ASML Dealers to sell CRC in Pakistan and
as this requires commitment from both ASML as well as our
Dealers therefore, they are called Dealer-Partner. ASML has
presently operates through 16 Dealer-Partners across
Pakistan covering all major demand centers of CRC
consumption. These Dealer-Partners are managed by
Mitsubishi Pakistans offices in Karachi, Lahore, and
Islamabad.
ASML also started its direct sales to End Users and has
been able to consistently add well established blue chips
customers. Some of these End Users have very stringent
CRC product approval criteria and it gives us great pleasure
to share with you that ASML has been successful in getting
approval from all End Users it has approached.
Sales & Marketing team has played a vital role in product
development and in designing best-selling practices (fastest
and round the clock), awareness about the product in the
market helped in switching customers from other sources to
ASMLs product. Continuous marketing and direct consumer
visits with push sale strategy helped in boosting up the
sales, customer engagement and retention in competitive
market environment where Imports were dominating. ASML
believes that the main competition comes from the imported
CRC and the increase in ASML sales means imports
substitution.
Raw Material Procurement

The raw material for CRC plant is Hot Rolled Coils (HRC).
ASML has to import the same due to unavailability of the
required quality and weight of coil. During the year under
review, ASML focused on reduction of HRC cost by
diversifying the supplier base further. This, however, adds to
the complexity of producing quality CRC from HRC of
different origin as each manufacturer has its peculiarities.
Frequent adjustments have to be made in both rolling and
annealing cycles. Despite this the company has been able to
achieve over 10% increase Prime/Standard Grade CRC
compared to previous year. ASML will continue to pursue a
policy of procuring from price competitive sources for
commercial CRC market and better quality HRC for high
end applications.
If problems confronting the local producers are addressed,

local producers can meet requirements of CRC in the
country.
30
Annexure I
Statement of attendance of board of directors
From July 1, 2014 to June 30, 2015
Name
Mr. Arif Habib
Mr. Shinpei Asada
Director
Mr. Hasib Rehman
Director
Mr. Nasim Beg
Director
Mr. Kashif A. Habib
Director
Mr. Muhammad Ejaz
Director
Director
Director
Newly Appointed CEO
Mr. Samad A. Habib
Outgoing Director
Mr. Shahid Aziz Siddiqui
Outgoing Director
Outgoing CEO
Alternate Director
Alternate Director to
Shinpei Asada
Mr. Kashif Shah

Mr. Naoki Setoguchi
Annual Report 2015
Remarks
Chairman & Director
Dr. Munir Ahmed
39
Designation
No. of
Eligible
Leaves
Meetings
to
Meetings Granted
Held during attend
attend
the Year
Annexure II
Statement of attendance of board of directors
Statement showing shares bought and sold by

directors, CEO, CFO, Company Secretary and their
spouses and Minor Children from July 1, 2014 to June 30, 2015
Designation
Ordinary Shares
Shares
Shares
Sold
Bought
Preference Shares Remarks

Shares
Shares
Sold
Bought
Mr. Arif Habib
Director
9,135,000
Mr. Shinpei Asada
Director
Mr. Hasib Rehman
Director
Mr. Nasim Beg
Director
Mr. Kashif A. Habib
Director
Mr. Muhammad Ejaz
Director
Director
Director
Director &Chief Executive
Outgoing Director
CFO & Company Secretary
Dr. Munir Ahmed

Mr. Shahid Aziz Siddiqui
Mr. Tahir Iqbal
Name of Directors
40
Annexure III
Pattern of Shareholdings of Ordinary Shares (Symbol: ASL)
As at June 30, 2015
Categories of Shareholders
Per%
13,925,385
5.14
Associated Companies, undertakings and related parties

Arif Habib Corporation Limited
Arif Habib Equity (Pvt) Limited
Universal Metal Corporation, Japan
Umc Pakistan (Private) Limited
Metal One Corporation
2
2
2
1
1
80,008,250
30,563,565
37,394,829
5,910,000
66,768,583
29.51
11.27
13.79
2.18
24.63
Executives
Public Sector Companies and Corporations
10,300,000
3.80
Banks, development finance institutions, non-banking finance companies,

insurance companies, takaful, modarabas and pension funds
6,104,000
2.25
Mutual Funds
Cdc - Trustee Picic Investment Fund
Cdc - Trustee Picic Growth Fund
Cdc - Trustee Nit-equity Market Opportunity Fund
Cdc - Trustee National Investment (Unit) Trust
1
1
1
1
2,000,000
3,000,000
228,500
392,388
0.74
1.11
0.08
0.14
General Public
a. Local
Foreign Investor
Others
1597
1
14
9,119,930
80,000
5,337,233
3.36
0.03
1.97
Totals
1628
271,132,663
100.00
Share Held
Per%
66,768,583
30,563,565
80,008,250
37,394,829
13,925,385
24.63
11.28
29.52
13.80
5.14

Mr. Hasib Rehman
Annual Report 2015
Share Held
Directors and their spouse(s) and minor children

Mr. Hasib Rehman
Share holders holding 5% or more
41
Shareholders

Categories of Shareholders as at June 30, 2015
S.No.
Folio #
Name of shareholder
Number of shares
Per %
13,925,385
13,925,385
5.14
5.14
65,786,900
14,221,350
24,347,362
6,216,203
26,642,829
10,752,000
5,910,000
66,768,583
220,645,227
24.26
5.25
8.98
2.29
9.83
3.97
2.18
24.63
81.38

1
1
Mr. Hasib Rehman
Associated Companies, Undertakings And Related Parties

1
11
2
06452-8640
3
12
4
06452-13087
Arif Habib Equity (Pvt) Ltd
5
9
6
03277-62597
Universal Metal Corporation
7
10629-89741
Umc Pakistan (Private) Limited
8
10
Executive
-
Public sector companies and corporations

1
2
03889-44
06247-63
National Bank Of Pakistan

Saudi Pak Industrial & Agricultural
Investment Co. Ltd.- Pmd
2
10,000,000
3.69
300,000
10,300,000
0.11
3.80
Banks, development finance institutions, non-banking finance companies, insurance companies, takaful, modarabas and
pension funds
1
03111-46
United Bank Limited - Trading Portfolio
6,104,000
2.25
1
6,104,000
2.25

Cdc - Trustee Nit-equity Market Opportunity Fund
4
2,000,000
3,000,000
228,500
392,388
5,620,888
0.74
1.11
0.08
0.14
2.07
Mutual Funds
1
05645-24
2
05777-29
3
12120-28
4
14902-21
42

S.No.
Folio #
General Foreign Investor

1
100908
Name of shareholder
Number of shares
Per %
80,000
80,000
0.03
0.03
3,000
2,000
74,800
74,800
4,664,000
500
1
29,920
412
2,340
14,960
150,500
310,500
9,500
5,337,233
271,132,663
9,119,930
0.00
0.00
0.03
0.03
1.72
0.00
0.00
0.01
0.00
0.00
0.01
0.06
0.11
0.00
1.97
100.00
3.36
Mr. Yoshikazu Uda

1
Others
1
100639
2
01669-26
3
03277-1018
4
03277-2307
5
03277-30088
6
03525-57191
7
03525-87235
8
04366-20
9
04424-22
10
04457-78
11 04705-48962
12 05264-45695
13
06452-27
14
06684-29
Annual Report 2015
Total
General Public Local
43
M/s Edusoft System Solutions

Shaffi Securities (Pvt) Limited
Sapphire Textile Mills Limited
Amer Cotton Mills (Pvt) Limited
Roomi Fabrics Ltd
Sarfraz Mahmood (Private) Ltd
Maple Leaf Capital Limited
Multiline Securities (Pvt) Limited
Sakarwala Capital Securities (Pvt) Ltd
Fdm Capital Securities (Pvt) Limited
Shakil Express (Pvt) Ltd
Trustee-treet Corporation Ltd.-group Emp.superannuation Fund
Arif Habib Limited
Mohammad Munir Mohammad Ahmed Khanani Securities (Pvt.) Ltd
14
1628
1597

204
489
308
387
94
33
19
14
7
6
1
4
11
2
2
1
1
2
1
1
8
3
1
1
1
2
2
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1628
Shareholdings Slab
1
101
501
1001
5001
10001
15001
20001
25001
30001
35001
40001
45001
50001
55001
60001
65001
70001
75001
90001
95001
110001
115001
145001
150001
160001
165001
195001
225001
295001
310001
345001
390001
495001
505001
1995001
2995001
4660001
5905001
6100001
6215001
9995001
10750001
13925001
14220001
24345001
26640001
65785001
66765001
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
Total Shares Held

100
500
1000
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
95000
100000
115000
120000
150000
155000
165000
170000
200000
230000
300000
315000
350000
395000
500000
510000
2000000
3000000
4665000
5910000
6105000
6220000
10000000
10755000
13930000
14225000
24350000
26645000
65790000
66770000
2,168
239,115
304,835
1,234,431
830,338
447,840
348,140
337,444
209,340
206,500
38,000
170,500
543,992
102,500
113,000
61,000
70,000
149,600
80,000
95,000
799,000
339,500
119,448
150,000
150,500
324,972
336,500
400,000
228,500
300,000
310,500
350,000
392,388
500,000
509,000
2,000,000
3,000,000
4,664,000
5,910,000
6,104,000
6,216,203
10,000,000
10,752,000
13,925,385
14,221,350
24,347,362
26,642,829
65,786,900
66,768,583
271,132,663
#Of Shareholders
44
Pattern of Shareholdings of Cumulative

Preference Shares (Symbol: ASLCPS)
As at June 30, 2015
Per%
55,816,802
32.47

Arif Habib Limited
2
4
1
56,493,515
52,612,714
28,000
32.86
30.60
0.02
Executives
22,506
0.01

8,594
0.00
Mutual Funds
Cdc - Trustee Picic Stock Fund
1
1
1
1,065,000
1,628,663
10,000
0.62
0.95
0.01
General Public
a. Local
Foreign Investor
Others
114
0
8
2,856,503
1,367,732
1.66
0.80
Totals
135
171,910,029
100.00
Share Held
Per%
55,816,802
56,493,515
52,612,714
32.47
32.86
30.60
Mr. Arif Habib

Annual Report 2015
Share Held

Mr. Arif Habib
45
Shareholders

As at June 30, 2015
S.No.
Folio #
Name of shareholder
Number of shares
Per %
55,816,802
55,816,802
32.47
32.47
12,847,547
43,645,968
4,437,482
12,173,681
32,893,450
3,108,101
28,000
109,134,229
7.47
25.39
2.58
7.08
19.13
1.81
0.02
63.48
22,506
22,506
0.01
0.01

1
06452-4953
Arif Habib

1
6
2
06452-8640
3
1
4
26
5
27
6
06452-13087
Arif Habib Equity (Pvt) Ltd
7
06452-27
Arif Habib Limited
Executive
1
06452-13483
Tahir Iqbal

NIL
0
pension funds
1
07393-24
Summit Bank Limited
8,594
0.00
1
8,594
0.00
Mutual Funds
1
05645-24
2
05777-29
3
13607-28

3
1,065,000
1,628,663
10,000
2,703,663
0.62
0.95
0.01
1.57
Others
1
00307-10508
2
00307-10623
3
00307-11134
4
00307-11837
5
00307-13346
6
04002-34898
7
8
04424-22
06684-117146
Total
General Public Local
Treet Corporation Limited

Trustees-treet Corp.ltd. E.Superannvat Fund
Trustee- Treet Cor. Ltd Emp. Provident Fund
Trustee- Treet Corporation Limited G.E. Gratuity
Trustee- Treet Corporation Ltd.group Employees
Service Fund
Trustee-karachi Sheraton Hotel
Employees Provident Fund
Sakarwala Capital Securities (Pvt)ltd.
Trust Iqbal Adamjee
8
135
114
14,000
300,000
302,500
300,000
0.01
0.17
0.18
0.17
350,500
0.20
26
206
100,500
1,367,732
0.00
0.00
0.06
0.80
171,910,029
2,856,503
100.00
1.66
NIL
0
46

#Of Shareholders
33
39
2
15
7
2
2
1
2
1
3
5
2
1
1
1
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
Annual Report 2015
135
47
Shareholdings Slab
1
101
501
1001
5001
10001
15001
20001
25001
35001
40001
45001
50001
70001
80001
95001
100001
195001
220001
295001
300001
350001
495001
995001
1060001
1625001
3105001
4435001
12170001
12845001
32890001
43645001
55815001
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
Total Shares Held

100
500
1000
5000
10000
15000
20000
25000
30000
40000
45000
50000
55000
75000
85000
100000
105000
200000
225000
300000
305000
355000
500000
1000000
1065000
1630000
3110000
4440000
12175000
12850000
32895000
43650000
55820000
977
12,774
1,735
40,590
48,552
29,000
40,000
22,506
57,140
37,500
126,000
244,500
106,500
72,255
83,250
100,000
100,500
195,556
221,000
600,000
302,500
350,500
500,000
1,000,000
1,065,000
1,628,663
3,108,101
4,437,482
12,173,681
12,847,547
32,893,450
43,645,968
55,816,802
171,910,029

Preference Shares (Symbol: ASLPS)
Shareholders
Share Held
Per%

Arif Habib
Muhammad Ejaz
Nasim Beg
1
1
2
14,662,542
11
2,006
20.17
0.00
0.00

35,771,207
49.21
Executives
13
0.00
595,479
0.82

11
345,861
0.48
Mutual Funds
1
1
1
1
130,000
257,327
20,000
121,208
0.18
0.35
0.03
0.17
General Public
a. Local
b. Foreign
Foreign Companies
OTHERS
3543
2
4
72
2,757,365
12,377
319,282
17,692,717
3.79
0.02
0.44
24.34
Totals
3646
72,687,395
100.00
Share Held
Per%
35,771,207
16,994,000
14,662,542
49.21
23.38
20.17

Al-abbas Sugar Mills Limited
Arif Habib
As at June 30, 2015
48

As at June 30, 2015
S.No.
Folio #
Name of shareholder

1
06452-4953
Arif Habib
2
06452-16908
Muhammad Ejaz
3
03277-35110
Nasim Beg / Zari Beg
4
06452-10901
Nasim Beg
4
1
1
2
06452-8640
2
Executive
1
06452-13483
Tahir Iqbal
1

1
03889-44
National Bank Of Pakistan
2
02683-23
State Life Insurance Corp. Of Pakistan
3
03277-4064
National Insurance Company Limited
Number of shares
Per %
14,662,542
11
1,915
91
20.17
0.00
0.00
0.00
14,664,559
20.17
34,570,058
1,201,149
47.56
1.65
35,771,207
49.21
13
0.00
13
0.00
273,699
86,442
235,338
0.38
0.12
0.32
3
595,479
0.82
pension funds
1
3
Innovative Investment Bank Limited
687
0.00
2
03335-81
Bank Alfalah Limited - Karachi Stock Exchange Branch
1,240
0.00
3
04127-28
Mcb Bank Limited - Treasury
168,286
0.23
4
07393-24
Summit Bank Limited
18,837
0.03
5
11940-4410
Escorts Investment Bank Limited
49
0.00
6
11940-6951
Escorts Investment Bank Limited
42,088
0.06
7
03277-2538
Efu Life Assurance Ltd
343
0.00
8
03277-9404
Allianz Efu Health Insurance Limited
22,000
0.03
9
03277-71690
Adamjee Life Assurance Company Limited
3,300
0.00
10
06494-23
Picic Insurance Limited
1,031
0.00
11
13755-21
Adamjee Insurance Company Limited
88,000
0.12
11
Mutual Funds
1
05645-24
2
05777-29
3
13607-28
4
14902-21
345,861
0.48
130,000
257,327
20,000
121,208
0.18
0.35
0.03
0.17
528,535
0.73
12,045
332
12,377
0.02
0.00
0.02
Classical Insights Fund Lp

Habib Bank Ag Zurich, Zurich,switzerland
Khuda Bakhsh Asim
Tundra Pakistan Fund
4
48,400
26,580
2
244,300
319,282
0.07
0.04
0.00
0.34
0.44

Annual Report 2015

1
00521-5543
Michael Churchill
2
06601-2601
Azfar-ul-ashfaque
49
Foreign Companies
1
00521-5493
2
03533-698
3
30
4
00547-8222

1821
1211
250
272
30
17
7
5
3
3
1
2
2
1
1
1
2
1
1
1
1
1
2
1
1
1
1
1
1
1
1
1
1
3646
Shareholdings Slab
1
101
501
1001
5001
10001
15001
20001
25001
30001
35001
40001
45001
55001
70001
75001
85001
110001
120001
125001
135001
150001
165001
235001
240001
255001
270001
375001
390001
1200001
14660001
16990001
34570001
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
Total Shares Held

100
500
1000
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
60000
75000
80000
90000
115000
125000
130000
140000
155000
170000
240000
245000
260000
275000
380000
395000
1205000
14665000
16995000
34575000
67,684
269,419
176,656
540,810
214,092
205,996
128,526
105,240
83,580
94,794
40,000
84,088
94,233
60,000
74,500
77,000
174,442
114,315
121,208
130,000
136,000
151,500
337,286
235,338
244,300
257,327
273,699
376,500
391,113
1,201,149
14,662,542
16,994,000
34,570,058
72,687,395
#Of Shareholders
50
Aisha Steel At A Glance

17%
Property plant and equipment

Stock in Trade - Raw Material
Trade debts -considered good
Other Recievables
Other Assets
1%
1%
Assets
16%
65%
18%
Total Equity
Non-Current Liabilities
Equity and
Liabilities
45%
Current Liabilities
37%
21%
39%
Salaries and Benets

Depreciation and Amortisation
Communication and Information Technology
Rent, Rates and Taxes
Operating and
Administrative
Expenses
Repair and Maintenance

Travelling and Conveyance
Others
14%
6%
2%
6%
4%
4%
2% 3%
Raw Material Consumed

Depreciation
Utilities
Stores, Spare and Consumable
Others
Cost of Goods
Manufactured
87%
12%
52
Financial & Business Highlights

(Rupees in million)
Balance Sheet
2015
2014
2013
2012
2011
2010
Non-Current Assets
Current Assets
Total Assets
11,170
4,167
15,337
11,009
5,272
16,281
10,486
3,864
14,351
9,792
1,155
10,947
7,170
1,306
8,476
5,592
226
5,819
Current Liabilities
Total Liabilities
5,628
6,898
12,526
5,504
8,242
13,746
5,100
6,998
12,099
5,930
2,020
7,950
4,992
634
5,627
3,477
847
4,323
5,157
2,811
3,438
2,535
3,438
2,252
3,438
2,998
3,200
2,849
1,989
1,495
9,492
9,259
4,343
Financial Cost
(1,373)
(1,299)
(891)
15
159
(Loss)/Profit after Tax
(1,211)
(347)
(746)
(86)
139
(214)
(1,766)
(651)
(2,122)
(778)
(657)
(378)
(134)
(229)
(209)
(1,720)
(942)
(1,446)
Paid up Capital
Total Equity*
Income Statement
Sales
Cashflow Statement
Cashflow from Operations
Cashflow from Investing Activities
Cashflow from Financing Activities
1,496
(478)
1,109
1,068
2,428
1,629
Net change in cash and cash equivalents
(403)
(1,358)
(1,222)
(1,431)
829
(195)
Cash and Cash Equivalents at beginning

of the year
(3,072)
(1,714)
(492)
939
110
305
Cash and cash equivalents at end of the year
(3,476)
(3,072)
(1,714)
(492)
939
110
0.00
(0.13)
0.03
(0.01)
-43.1%
-2.1%
0.01
(0.04)
0.13
0.10
-13.7%
15.5%
(0.02)
(0.17)
0.01
(0.05)
-33.1%
-3.7%
-2.9%
-2.1%
4.9%
-1.1%
-14.3%
-1.8%
0.60
0.23
0.02
0.64
0.21
0.01
0.55
0.20
0.03
0.57
0.26
0.02
2.06
1.91
1.48
0.27
0.16
0.13
111.63
2.92
141.31
1.05
(26.76)
112.48
7.57
140.16
1.10
(20.11)
116.42
16.06
127.63
2.25
4.84
(4.97)
4.69
(1.62)
5.54
(3.15)
6.55
(0.82)
8.72
0.39
8.89
(1.08)
7.52
3.38
14%
1.99
0.08
3.50
15%
2.17
(0.69)
4.00
13%
2.65
(0.25)
2.16
1.98
-
1.79
1.75
-
2.59
2.51
-
Ratios
Profitability Ratios
Gross Profit Ratio
Net Profit to Sales
EBITDA Margin to Sales
Operating leverage Ratio
Return on Equity*
Return on Capital Employed
Liquidity Ratios
Current Ratio
Quick/Acid test Ratio
Cash to Current Liabilities
Activity/Turnover Ratio
Inventory Turnover Ratio/No. of days in inventory
Debtor turover ratio/No of days in receivables
Creditor turnover ratio/No of days in payables
Total Assets Turnover ratio/fixed assets turnover ratio
Operating cycle
Investment/Market Ratios
Basic EPS
Breakup value per share
Capital Structure Ratios
Financial leverage ratio
Weighted average cost of debt
Long term debt to Equity* ratio
Interest Cover ratio
*includes Share Deposit Money and Surplus on revaluation of fixed assets
53 Annual Report 2015
DuPont Analysis
(Rupees in million)
- 43.08%
Return on Equity
x
5.46
Leverage Factor
-7.89%
Return on Assets
2,811
Total Assets
2,811
Total Equity
12,526
Owners Equity
Total Liabilities
0.62 times -12.76%

Assets Turnover
Non- Current Liabilities
15,337
9,492 (1,211)
Total Assets
+
5,628
Net Loss Margin
Sales
Net Income
6,898
Current Liabilities
11,170
Non- Current Assets
4,167
Current Assets
10,703 9,492
Total Cost
Sales
15,337
54
Graphical Representation
PKR Millions
Total assets
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
Total Assets
Current Assets
Current Liabilities
2010
2011
2012
2013
2014
2015
Total Liabilities
PKR Millions
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
Total Assets
Current Assets
Non Current
Liabilities
2010
1.00
Earning Per Share
2011
2012
2013
2014
2015
Basic EPS
2010
2011
2012
2013
2014
2015
(1.00)
(2.00)
(3.00)
(4.00)
(5.00)
Breakup value per share

10.00
9.00
8.00
(6.00)
7.00
Annual Report 2015
6.00
55
5.00
4.00
3.00
2.00
1.00
2010
2011
2012
2013
2014
2015
Equity
3,500
3,000
2,500
2,000
1,500
1,000
500
-
2010
2011
2012
2013
2014
Paid up Capital
2015
6,000
5,000
4,000
3,000
2,000
1,000
-
Financial Average Ratio
2010
2011
2012
2013
2014
2015
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
2010
2011
2012
2013
2014
2015
Return on Equity
10.0%
0.0%
-10.0%
-20.0%
-30.0%
-40.0%
-50.0%
2010
2011
2012
2013
2014
2015
56

Balance Sheet
(Rupees in million)
HORIZONTAL ANALYSIS
Non-Current Assets
Intangible assets
Long Term Loans
Long term deposits and prepayments
Deferred tax asset
Current Assets
Stores and spares
Advances, deposits and prepayments
Other Recievables
Financial asset held to maturity investment
Tax Refund Due from Government - Sales Tax
Accrued mark-up
Taxation - Payment Less Provision
Cash and bank balances
TOTAL ASSETS
Shareholders' Equity
Share Capital: Ordinary Shares
Preference Shares
Share Deposit Money
Accumulated losses
Total Equity
Share deposit money
Surplus on revaluation of fixed assets
Long-term finance
Liabilities against assets subject to finance lease
Staff retirements benefits
2015
2014
2013
2,012
2011
2010
9,996
13
3
48
1,110
11,170
-2%
-13%
0%
0%
53%
1%
10,219
15
3
48
724
11,009
4%
-27%
-32%
-2%
15%
5%
9,785
20
4
49
627
10,486
3%
80%
10%
3%
164%
7%
9,492
11
4
48
237
9,792
37%
2319%
39%
-1%
24%
37%
6,927
0
3
48
191
7,170
25%
-13%
100%
1%
100%
28%
5,544
1
0
48
0
5,592
50%
126%
0%
4%
0%
49%
163
2,434
76
309
228
493
332
132
4,167
3%
-27%
-60%
272%
-55%
-100%
4%
-100%
-27%
120%
-21%
159
3,347
192
83
502
472
1
456
60
5,272
10%
44%
1%
18%
121%
-100%
12%
89%
76%
-71%
36%
145
2,323
191
70
227
20
423
1
259
206
3,864
6%
375%
100%
246%
64%
100%
48%
25%
457%
452%
235%
137
490
49%
100%
92
-
0%
0%
92
0
82%
0%
20
139
188%
-42%
7
238
-64%
100%
20
0
65%
0%
285
0
46
37
1,155
1222%
-73%
555%
-96%
-12%
22
2
7
939
1,306
8167%
125%
80%
756%
478%
0
1
4
110
226
5%
-18%
91%
-64%
-39%
15,337
-6%
16,281
13%
14,351
31%
10,947
29%
8,476
46%
5,819
41%
2,711
2,446
0%
236%
2,710
729
0%
-1%
2,704
734
1%
-3%
2,680
758
10%
0%
2,446
755
23%
100%
1,989
-
0%
0%
(2,737)
2,420
79%
27%
(1,533)
1,906
29%
-15%
(1,187)
2,252
169%
-25%
(441)
2,998
24%
5%
(355)
2,846
-28%
90%
(494)
1,495
77%
-13%
100%
237
100%
-100.00%
100.00%
4,985
5
3
4,992
44%
-29%
100%
44%
3,470
7
3,477
55%
109%
0%
55%
391
0%
392
5,597
8
23
5,628
2%
60%
51%
2%
5,484
5
15
5,504
8%
-37%
0%
8%
5,077
8
15
5,100
-14%
-30%
148%
-14%
5,912
11
6
5,930
19%
142%
121%
19%
10
0%
10
-99%
888
100%
30
100%
-100%
289
100%
3
3,876
2,744
265
6,898
-40%
15%
-40%
-7%
0%
0%
-16%
5
3,369
4,574
284
8,242
12%
11%
84%
-51%
0%
0%
18%
4
3,030
2,492
584
6,998
21%
472%
321%
-32%
0%
0%
246%
4
529
592
865
2,020
93%
429%
1357%
76%
0%
0%
219%
2
100
41
492
634
16%
-9%
-36%
29%
0%
0%
-25%
2
110
64
382
847
133%
100%
-58%
2565%
0%
0%
406%
Total Liabilities
12,526
-9%
13,746
14%
12,099
52%
7,950
41%
5,627
30%
4,323
79%
Total Equity and Liabilities
15,337
-6%
16,281
13%
14,351
31%
10,947
29%
8,476
46%
5,819
41%
Current Liabilities
Current maturity of long-term loan
Current maturity of liabilities against assets subject
to finance lease
Short Term Borrowings
Creditors, accrued expenses and other liabilities
Accrued mark-up
Due to Associated Company
Due to Director

Profit & Loss Account
(Rupees in million)
Sales
Cost of sales
Gross loss
Selling and distribution cost
Administrative expenses
Other income
Profit / (loss) from operation
2015
2014
2013
9,492
3%
9,259
113%
4,342
0%
(9,451)
3%
(9,200)
109%
(4,409)
41
-31%
59
-187%
(38)
6%
(36)
(124)
-11%
-99%
(115)
2011
2010
0%
0%
0%
0%
0%
0%
0%
(68)
0%
0%
0%
0%
103%
(18)
0%
0%
0%
0%
(140)
-11%
(157)
-1%
(158)
48%
(107)
44%
(75)
-40%
1,007
5282%
19
-54%
40
-33%
60
208%
19
32%
890
(224)
2,012
(118)
(47)
(55)
Finance cost
(1,373)
6%
(1,299)
46%
(891)
5907%
(15)
229%
(5)
-97%
(159)
130%
Loss before taxation
(1,488)
264%
(409)
-63%
(1,115)
742%
(132)
157%
(52)
-76%
(214)
20%
277
347%
62
-83%
369
696%
46
-76%
191
100%
0%
(1,211)
249%
(347)
-53%
(746)
766%
(86)
-162%
139
-165%
(214)
20%
(4.97)
207%
(1.62)
-49%
(3.15)
284%
(0.82)
-310%
0.39
-136%
(1.08)
15%
Taxation - deferred
(Loss) / Profit for the year after tax
(Loss) / earning per share - Rupee
HORIZONTAL ANALYSIS
58

Balance Sheet
(Rupees in million)
VERTICAL ANALYSIS
Non-Current Assets
Intangible assets
Long Term Loans
Long term deposits and prepayments
Deferred tax asset
Current Assets
Stores and spares
Other Recievables
Financial asset held to maturity investment
Tax Refund Due from Government - Sales Tax
Accrued mark-up
Taxation - Payment Less Provision
Term Deposits
TOTAL ASSETS
Shareholders' Equity
Share Capital: Ordinary Shares
Preference Shares
Share Deposit Money
Accumulated losses
Total Equity
Share deposit money
2015
2014
2013
2,012
2011
2010
9,996
13
3
48
1,110
11,170
65%
0%
0%
0%
7%
73%
10,219
15
3
48
724
11,009
63%
0%
0%
0%
4%
68%
9,785
20
4
49
627
10,486
68%
0%
0%
0%
4%
73%
9,492
11
4
48
237
9,792
87%
0%
0%
0%
2%
89%
6,927
0
3
48
191
7,170
82%
0%
0%
1%
2%
85%
5,544
1
48
5,592
95%
0%
163
2,434
76
309
228
159
3347
192
83
502
0
472
1
456
0
60
5,272
1%
21%
1%
1%
3%
0%
3%
0%
3%
0%
0%
32%
145
2323
191
70
227
20
423
1
259
0
206
3,864
1%
16%
1%
0%
2%
0%
3%
0%
2%
0%
1%
27%
137
490
1%
4%
92
-
1%
0%
92
-
2%
20
139
0%
1%
7
238
0%
3%
20
-
0%
493
332
132
4,167
1%
16%
0%
2%
1%
0%
3%
0%
2%
0%
1%
27%
285
0
46
0
37
1,155
3%
0%
0%
0%
0%
11%
22
2
7
939
1,306
0%
0%
0%
0%
11%
15%
0
1
4
110
226
0%
0%
0%
2%
4%
15,337
100%
16,281
100%
14,351
100%
10,947
100%
8,476
100%
5,819
100%
2,711
2,446
18%
16%
2,710
729
17%
4%
2,704
734
19%
5%
2,680
758
24%
7%
2,446
755
29%
9%
1,989
-
34%
0%
(2,737)
2,420
-18%
16%
(1,533)
1,906
-9%
12%
(1,187)
2,252
-8%
16%
(441)
2,998
-4%
27%
(355)
2,846
-4%
34%
(494)
1,495
-8%
26%
1%
0%
0%
0%
4,985
5
3
4,992
59%
0%
0%
0%
59%
3,470
7
3,477
60%
0%
0%
0%
60%
391
3%
237
392
5,597
8
23
5,628
36%
0%
0%
0%
37%
5,484
5
15
5,504
34%
0%
0%
0%
34%
5,077
8
15
5,100
35%
0%
0%
0%
35%
5,912
11
6
5,930
74%
0%
0%
0%
75%
10
0%
10
0%
888
6%
30
0%
0%
289
5%
3
3,876
2,744
265
6,898
0%
25%
18%
2%
0%
0%
45%
5
3,369
4,574
284
8,242
0%
21%
28%
2%
0%
0%
51%
4
3,030
2,492
584
6,998
0%
21%
17%
4%
0%
0%
49%
4
529
592
865
2,020
0%
7%
7%
11%
0%
0%
25%
2
100
41
492
634
0%
1%
0%
6%
0%
0%
7%
2
110
64
382
847
0%
2%
1%
7%
0%
0%
15%
Total Liabilities
12,526
82%
13,746
84%
12,099
84%
7,950
73%
5,627
66%
4,323
74%
Total Equity and Liabilities
15,337
100%
16,281
100%
14,351
100%
10,947
100%
8,476
100%
5,819
100%

Long-term finance
Liabilities against assets subject to finance lease
Staff retirements benefits
Short-term loan
Current Liabilities
Current maturity of long-term loan
Current maturity of liabilities against assets
subject to finance lease
Short Term Borrowings
Creditors, accrued expenses and other liabilities
Accrued mark-up
Due to Associated Company
Due to Director
0%
1%
0%
96%
2%

Profit & Loss Account
(Rupees in million)
2015
2014
2013
2011
2010
9,492
103%
9,259
100%
4,342
100%
0%
0%
0%
(9,451)
-102%
(9,200)
-99%
(4,409)
-102%
0%
0%
0%
41
0%
59
1%
(68)
-2%
0%
0%
0%
(38)
0%
(36)
0%
(18)
0%
0%
0%
0%
(124)
-1%
(140)
-2%
(157)
-4%
(158)
0%
(107)
0%
(75)
0%
Other operating income
0%
1,007
11%
19
0%
40
0%
60
0%
19
0%
(115)
-1%
890
10%
(224)
-5%
(118)
Finance cost
(1,373)
-15%
(1,299)
-14%
(891)
-21%
(15)
0%
(5)
0%
(159)
0%
(1,488)
-16%
(409)
-4%
(1,115)
-26%
(132)
157%
(52)
-76%
(214)
20%
277
3%
62
1%
369
8%
46
-76%
191
100%
0%
(1,211)
-13%
(347)
-4%
(746)
-17%
(86)
-162%
139
-165%
(214)
20%
(4.97)
207%
(1.62)
-49%
(3.15)
284%
(0.82)
-310%
0.39
-136%
(1.08)
15%
Sales
Cost Of Sales
Gross Loss
Loss from operation
Taxation - deferred
(Loss) / Profit for the year after tax
Basic earnings per share - Rupee
2,012
(47)
(55)
VERTICAL ANALYSIS
60
Summary of Cash Flow Statements

(Rupees in million)
Cash Flow Statement
2009
2010
2011
2012
2013
2014
2015
Cash flow from operations
(141)
(378)
(657)
(778)
(2,122)
(651)
(1766)
Cash flow from investing activities
(2,003)
(1,446)
(942)
(1,720)
(209)
(229)
(134)
Cash flow from financing activities
2,381
1,629
2,428
1,068
1,109
(478)
1496
237
(195)
829
(1,431)
(1,222)
(1,358)
(403)
68
305
110
939
(492)
(1,714)
(3072)
305
110
939
(492)
(1,714)
(3,072)
(3476)

Cash and cash equivalents at beginning of the year
Rupees in Million
3,000
2,000
1,000
(1,000)
(2,000)
(3,000)
(4,000)
Annual Report 2015
2010
61
2011
2012
2013
2014
Cashow from Operations
Cashow from Investing Activities
Cashow from Financing Activities
Cash and Cash Equivalents at beginning of the year
2015
Statement of Value Addition and Distribution

(Rupees in thousands)
Total Revenue
Other Income
Cash & Bank - Opening
Share Capital
Income taxes refund
Short term finance
Long term finance
DISTRIBUTED AS FOLLOWS
To employees
Salaries, wages and other benefits including
retirement benefits
To Government
Income tax, sales tax, excise duty and custom duty
WPPF and WWF
To Society
Charity and welfare activities
2015
2014
2013
9491,748
5,957
59,845
1,475,136
27,680
507,045
11,567,411
9,259,027
1,006,538
205,860
236,924
339,021
11,047,370
4,341,602
18,712
37,283
2,470,787
53,652
6,922,036
224,467
237,979
217,923
410,876
-
656,589
-
412,952
-
353
To providers of Capital
Dividend to shareholders
Repayment of long term loan
Finance cost of borrowed funds
10,000
1,145,078
471,831
1,251,683
1,417,292
To Suppliers
To Suppliers for capital goods
To Raw material and other suppliers
138,809
9,505,908
240,603
8,128,840
212,196
4,455,461
132,273
11,567,411
59,845
11,047,370
205,860
6,922,037
Retained in the business

Closing Cash Balances
Distribution of
Wealth - 2015
To employees
To Government
To Society
To Suppliers
224,467
410,876
1,155,078
9,644,717
132,273
Distribution of
Wealth - 2014
2%
3%
0%
10%
83%
1%
237,979
656,589
1,723,514
8,369,443
59,845
11,567,411
1% 2% 3%
0%
To employees
84%
To Society
Distribution
of Wealth
-2014
To Suppliers
To employees
To Government
To Society
To Suppliers
76%
217,923
412,952
353
1,417,292
4,667,657
205,860
3%
6%
0%
20%
67%
3%
6,922,037
0%
16%
To Government
Distribution
of Wealth
-2015
2%
6%
0%
16%
76%
1%
11,047,370
0% 2% 6%
10%
Distribution of
Wealth - 2013
WEALTH CREATED
62
Share Price / Volume Analysis

Month
High
Low
Volume
High
Low
Volume
Jul-14
Rupees
8.98
Rupees
7.65
560,000
Rupees
7.72
Rupees
6.73
22,500
Aug-14
7.88
6.9
Sep-14
364,500
6.75
5.85
35,500
2,334,500
7.74
6.25
40,500
Oct-14
8.99
7.5
1,071,000
7.57
6.75
45,500
Nov-14
10.16
7.7
3,318,500
8.35
42,000
Dec-14
8.35
7.7
812,500
7.85
7.15
53,000
Jan-15
11.27
16,868,500
10.58
7.5
462,500
Feb-15
10.3
8.07
1,343,000
9.6
8.03
93,000
Mar-15
8.51
6.15
828,000
9.85
7.23
64,500
Apr-15
7.74
721,500
8.82
7.5
7,000
May-15
7.45
6.8
679,500
7.25
6.75
6,500
Jun-15
9.21
7.2
3,099,500
8.5
10,500
Annual Report 2015

63
High
Low
Volume
5,500
9-Jun-15
14
10
10-Jun-15
12
11.58
12-Jun-15
11.58
11.49
15-Jun-15
11.11
11.11
500
17-Jun-15
11.11
11.09
18-Jun-15
11.98
10.99
3,500
19-Sep-15
10.97
10.97
14,000
23-Jun-15
10.99
10.99
1,000
25-Jun-15
10.5
10.5
500
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
High
Low
Cumulative Preference
Shares (Symbol: ASLCPS)
Jun-15
Apr-15
May-15
0
Mar-15
Jul-14 Sep-14 Nov- Jan-15 Mar- May14

15
15
Volume
Jan-15
Feb-15
Dec-14
Oct-14
10
Nov-14
10
Date
12
500,000
450,000
400,000
350,000
300,000
Volume 250,000
200,000
Highest
150,000
Lowest 100,000
50,000
-
12
Sep-14
Ordinary Shares (Symbol: ASL)
Jul-14
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Cumulative Preference
Shares (Symbol: ASLPS)
Aug-14
Axis Title
Ordinary Shares (Symbol: ASL)
Volume
High
Low
16
14
12
10
8
6
4
2
0
Shareholders Information
Share Registrar Office

Central Depository Company of Pakistan
Share Registrar Department
CDC House, 99-B, Block-B, S.M.C.H.S. Main
Shahrah-e-Faisal, Karachi
Tel: (021)111-111-500 Toll Free:0800-23275
Fax: (021) 34326053
URL: www.cdcpakistan.com
Email: info@cdcpak.com
Listing on Stock Exchanges
ASML Ordinary and Preferece shares are listed on the
Karachi Stock Exchange (KSE).
Stock Code
The stock code for dealing in Ordinary, Preferece-I
and Preferece-II shares of the Company at the KSE are
ASL, ASLPS and ASLCPS.
Investor Service Centre
ASML share department is operated by Central Depository
Company of Pakistan (CDC), Registrar Services. It also
functions as an Investor Service Centre is managed
by a well-experienced team of professionals and is
equipped with the necessary infrastructure in terms of
computer facilities and comprehensive set of systems and
procedures for conducting the Registration function. Team
is headed by Mr. Abdus Samad at the Registrar Office and
Company Secretary at ASML Registered Office.
For assistance, shareholders may contact either the
Registered Office or the Share Registrar Office.
Contact Persons:
Mr. Jawwad Zamir
Tel: (021) 32470217
Email: jawwad.zamir@aishasteel.com
Mr. Mohsin Rajab Ali
Tel: (021) 111-111-500
Email:mohsin_rajabali@cdcpak.com
Statutory Compliance
During the year the company has compiled with all
applicable provisions, filled all returns/forms and
furnished all the relevant information as required under
the Companies Ordinance, 1984 and allied laws and
rules, the Securities and Exchange Commission of
Pakistan (SECP) Regulations and the Listing Regulations,
wherever applicable.
Book Closure Dates

The Share Transfer Books of the Company will be closed
from the 19th October 2015 to 26th October 2015 (both
days inclusive). Transfers received in order at the office of
our Share Registrar M/s. Central Depository Company of
Pakistan Limited, CDC House, 99-B, Block-B, S.M.C.H.S,
Main Shahrah-e-Faisal, Karachi at the close of the
business on Sunday, 18th October 2015, will be
considered in time for the determination of entitlement of
shareholders to attend and vote at the meeting.
Legal Proceedings
No case has ever been filed by shareholders against the
Company for non-receipt of share/dividend.
General Meetings & Voting Rights
Pursuant to Section 158 of Companies Ordinance, 1984
ASML holds a General Meeting of shareholders at least
once a year. Every shareholder has a right to attend the
General Meeting. The notice of such meeting is sent to
all shareholders at least 21 days before the meeting and
will also published in at least one English and one Urdu
newspaper having circulation in Sindh province after
listing of Company at KSE.
Proxies
Pursuant to Section 161 of the Companies Ordinance,
1984 and according to the Memorandum and Articles of
Association of the Company, every shareholder of the
Company who is entitled to attend and vote a General
Meeting of the Company can appoint another member as
his/ her proxy to attend and vote at the meeting. Every
notice calling a General Meeting of the Company contains
a statement that shareholder entitled to attend and vote is
entitled to appoint a proxy.
Web Presence
During the year the website has been redesigned to give
an investor friendly look. Further the website has been
updated in accordance with SRO 25(I)/2012 of SECP
dated 16th January 2012. Updated information about
the company and its affiliates can be accessed at ASML
website, www.aishasteel.com
Shareholding Pattern
The shareholding pattern of the equity share capital of the
company as on 30th June 2015 along with categories of
shareholders are given on page 40 to 50.
Registered Office
Arif Habib Centre
23, M.T. Khan Road
Karachi-74000
Tel: (021)32470217, 34740160
Fax No: (021)34740151
Email: info@aishasteel.com
Website: www.aishasteel.com
64
Balance Sheet
Annual Report 2015
As at June 30, 2015
73
Note
2015
2014

Rupees 000
ASSETS
Non-current assets
Property, plant and equipment
3
9,995,626
10,218,918
Intangibles - Computer Software
4
13,267
14,804
Long-term loans and advances
5
2,958
2,876
Long-term deposits and prepayments
6
47,799
47,878
Deferred tax
7
1,109,909
724,153
11,169,559
11,008,629
Current assets
Stores and spares
8
163,383
159,046
Stock-in-trade
9 2,433,460
3,347,294
Trade debts - considered good
10
76,261
192,499
11
309,342
82,524
Accrued mark-up
-
160
Other receivables
12
227,670
502,352
Tax refunds due from Government - Sales tax
493,301
471,655
Taxation - payments less provision
331,613
456,205
13
132,273
59,845

4,167,303
5,271,580
Total assets
15,336,862
16,280,209
EQUITY AND LIABILITIES
Equity
Share capital
14
Ordinary shares
2,711,327
2,709,556
Cumulative preference shares
2,445,974
728,645

5,157,301
3,438,201
Accumulated loss
(2,737,365)
(1,532,979)

2,419,936
1,905,222
Share deposit money
-
236,924
15 390,812
391,676
Liabilities
Non-current liabilities
Long-term finance
16
5,597,138
5,483,867
Liabilities against assets subject to finance leases
17
7,516
4,950
Staff retirement benefit
18
22,962
14,722
5,627,616
5,503,539
Current liabilities
Trade and other payables
19
2,744,429
4,574,354
Accrued mark-up
20
264,857
284,475
Short-term borrowings
21
3,876,224
3,369,179
Current maturity of long-term finance
16
10,000
10,000
Current maturity of liabilities against assets
subject to finance leases
17
2,988
4,840
6,898,498
8,242,848
Total liabilities 12,526,114
13,746,387
Contingencies and commitments 22
Total equity and liabilities 15,336,862 16,280,209
The annexed notes 1 to 40 form an integral part of these financial statements.
CHIEF EXECUTIVE
DIRECTOR
Profit and Loss Account

For the year ended June 30, 2015

Note
2015
2014

Rupees 000
Revenue 23
9,491,748
9,259,027

Cost of sales
24
(9,451,422)
(9,200,260)

Gross profit
40,326
58,767

25
(37,964)
(35,501)

26
(124,032)
(139,577)

Other income
27
5,957
1,006,538

(Loss) / profit from operations
(115,713)
890,227

Finance cost
28
(1,372,527)
(1,299,141)


(1,488,240)
(408,914)

Taxation 29
277,418
62,247

Loss for the year
(1,210,822)
(346,667)

Other comprehensive income:

Items that will not be reclassified
to Profit and Loss
Remeasurements of staff retirement benefit - note 18

1,186
291
Impact of deferred tax
(356)
(102)

830
189
Total comprehensive loss
(1,209,992)
(346,478)

Rupees
Basic earnings per share - (loss)
30
(4.97)
(1.62)
CHIEF EXECUTIVE
DIRECTOR
74
Cash Flow Statement

Note
2015
2014

Rupees 000
CASH FLOWS FROM OPERATING ACTIVITIES

Cash (used in) / generated from operations
31
(650,045)
888,076
Income taxes refund / (paid)
27,680
(289,072)
Mark-up on loans paid
(1,145,078)
(1,251,683)
Return on bank deposits received
5,418
5,200
Staff retirement benefit paid
(3,847)
(5,923)
(Decrease) / increase in long-term employee loans
(82)
1,553
Decrease in long-term deposits and prepayments
79
1,100
Net cash used in operating activities
(1,765,875)
(650,749)
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment
(137,775)
(240,603)
Acquisition of intangible assets
(1,034)
Sale proceeds on disposal of property, plant and equipment
5,228
7,995
Proceeds on disposal of intangible assets
-
3,486
Net cash used in investing activities
(133,581)
(229,122)
CASH FLOWS FROM FINANCING ACTIVITIES

Share deposit money received
-
236,924
Receipts against issue of right shares (preference shares)
- net of issuance costs
1,475,136
Repayment of long-term finance
(10,000)
(394,200)
Syndicate running finance obtained
66,602
Repayment of sponsors loan
(35,354)
Short-term borrowing obtained
-
183,500
Repayment of short-term borrowing
-
(500,000)
Decrease in liabilities against assets subject to
finance leases
(297)
(4,297)
Net cash generated from / (used in) financing activities
1,496,087
(478,073)
Net decrease in cash and cash equivalents
(403,369)
(1,357,944)
Cash and cash equivalents at

beginning of the year
(3,072,182)
(1,714,238)
(3,475,551)
(3,072,182)
32
Cash flow statement based on direct method has also been included in the financial statements in note 33.

Annual Report 2015
75
CHIEF EXECUTIVE
DIRECTOR
Statement of Changes In Equity

Share
Capital
Accumulated
Loss
Total
Rupees 000
Balance as at July 1, 2013
3,438,201
(1,186,501)
2,251,700
Total comprehensive loss for the year

ended June 30, 2014

- Loss for the year ended
June 30, 2014
-
(346,667)
(346,667)

- Other comprehensive income for the
year ended June 30, 2014
-
189
189

-
(346,478)
(346,478)
Balance as at July 1, 2014

3,438,201
(1,532,979)
1,905,222

Proceeds from issue of right shares and issuance
costs (net of tax) accounted for as a deduction
from equity - note 14.1
1,719,100
(4,928)
1,714,172
Total comprehensive loss for the year

ended June 30, 2015

- Loss for the year ended
June 30, 2015
-
(1,210,822)
(1,210,822)
Transferred from surplus on revaluation of

fixed assets on account of incremental
depreciation - net of deferred tax
-
10,534
10,534

- Other comprehensive income for the
year ended June 30, 2015
-
830
830

-
(1,199,458)
(1,199,458)
Balance as at June 30, 2015

5,157,301
(2,737,365)
2,419,936

CHIEF EXECUTIVE
DIRECTOR
76
Notes to and forming part of the financial statements

1.
THE COMPANY AND ITS OPERATIONS

The Company was incorporated in Pakistan on May 30, 2005 as a public limited company under the Companies
Ordinance, 1984. The Companys shares are listed on Karachi Stock Exchange (KSE) since August 2012. The registered
office of the Company is situated at Arif Habib Centre, 23 M.T. Khan Road, Karachi.

The Company has set up a cold rolling mill complex in the downstream Industrial Estate, Pakistan Steel, Bin Qasim,
Karachi, to carry out its principal business of manufacturing and selling cold rolled steel in coils and sheets. The
Company started trial production from July 2012 and declared October 1, 2012 as its Commercial Operations Date.

1.1 Orient Metal (Private) Limited (the Acquirer) made a public announcement of intention, in respect of potential acquisition
of the substantial shares of the Company, on January 2, 2015. The Acquirer does not hold any shares at present
in the Company and intends to acquire substantial voting shares.

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1
Basis of preparation

2.1.1
Statement of compliance

These financial statements have been prepared in accordance with approved accounting standards as applicable in
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRSs) issued
by the International Accounting Standards Board and Islamic Financial Accounting Standards (IFAS) issued by the
Institute of Chartered Accountants of Pakistan as are notified under the Companies Ordinance, 1984 and provisions of
and directives issued under the Companies Ordinance, 1984. In case requirements differ, the provisions or directives of
the Companies Ordinance, 1984 shall prevail.

2.1.2
Critical accounting estimates and judgements

The preparation of financial statements in conformity with approved accounting standards requires the use of certain
critical accounting estimates. It also requires management to exercise its judgment in the process of applying the
Companys accounting policies. The matter involving a higher degree of judgment or complexity, or area where
assumptions and estimates are significant to the financial statements is deferred taxation which is dependent on future
profitability of the Company.

Estimates and judgements are continually evaluated and adjusted based on historical experience and other factors,
including expectations of future events that are believed to be reasonable in the circumstances.

There have been no critical judgments made by the Companys management in applying the accounting policies that
would have significant effect on the amounts recognised in the financial statements.
2.1.3 Changes in accounting standards and interpretations

a)
Standards, interpretations and amendments to published approved accounting standards that are effective and
relevant
Annual Report 2015
77
b)
IFRIC 21, Levies a new interpretation is applicable for the Company for the first time for the financial year beginning on
July 1, 2014, sets out the accounting for an obligation to pay a levy that is not income tax. The interpretation addresses
what the obligating event is that gives rise to pay a levy and when should a liability be recognised. The Company is not
currently subject to significant levies so the impact on the Company is not material.
Standards, interpretations and amendments to published approved accounting standards that are effective but
not relevant

The new standards, amendments and interpretations that are mandatory for accounting periods beginning on July 1,
2014 are considered not to be relevant or material for the Companys financial statements and hence have not been
detailed in these financial statements.

c)
Standards, interpretations and amendments to published approved accounting standards that are not yet
effective but relevant

The following are the new standards, amendments to existing approved accounting standards and new interpretations
that will be effective for the periods beginning January 1, 2015 that may have an impact on the financial statements of
the Company.

IFRS 10, Consolidated financial statement replaces all of the guidance on control and consolidation in IAS 27,
Consolidation and separate financial statement, and SIC-12,Consolidation - special purpose entities. IAS 27 is
renamed Separate financial statement, it continues to be a standard dealing solely with separate financial statements.
IFRS 10 has the potential to affect all reporting entities (investors) that control one or more investees under the revised
definition of control. The standard presently does not impact financial statements of the Company.
IFRS 12, Disclosures of interests in other entities includes the disclosure requirements for all forms of interests in other
entities, including joint arrangement, associates, structured entities and other off balance sheet vehicles. The standard
will affect the disclosures in the financial statements of the Company.
IFRS 13, Fair value measurement, aims to improve consistency and reduce complexity by providing a precise definition
of fair value and a single source of fair value measurement and disclosure requirement for use across IFRSs. The
requirement do not extend the use of fair value accounting but provide guidance on how it should be applied where its
use is already required or permitted by other standards within IFRSs. The standard will affect the determination of fair
value and its related disclosures in the financial statements of the Company.
2.2
Overall valuation policy

These financial statements have been prepared under the historical cost convention unless specifically disclosed in the
accounting policies below.
Depreciation is charged to profit and loss account by applying straight-line method whereby the cost less residual value
is written off over its estimated useful life. The revalued amount of leasehold land and buildings is depreciated equally
over the remaining life from the date of revaluation. Depreciation on additions is charged from the month the asset is
available for use and on disposals upto the month preceding the month of disposal.
The Company accounts for impairment, where indication exist, by reducing its carrying value to the assessed recoverable
amount.
Gain or loss on disposal or retirement of property, plant and equipment is included in profit and loss account.
Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals and
improvements are capitalised and the assets so replaced, if any, are retired.
2.4
The surplus arising on revaluation of fixed assets is credited to the Surplus on revaluation of fixed assets account
which is shown below equity in the balance sheet in accordance with the requirements of section 235 of the Companies
Ordinance, 1984. The said section was amended through the Companies (Amendment) Ordinance, 2002 and
accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping
in view the Securities and Exchange Commission of Pakistan (SECP) SRO 45(1)/2003 dated January 13, 2003:

-
depreciation on assets which are revalued is determined with reference to the value assigned to such assets on
revaluation and depreciation charge for the period is taken to the profit and loss account; and
-
an amount equal to incremental depreciation for the period net of deferred taxation is transferred from surplus on
revaluation of fixed assets to unappropriated profit through statement of Changes in Equity to record realisation of
surplus to the extent of the incremental depreciation charge for the period.
2.3
Property, plant and equipment

These are stated at cost less accumulated depreciation, except for leasehold land and buildings which are stated at
revalued amount less accumulated depreciation; and capital work-in-progress which are stated at cost.
78

2.5
Intangibles

Intangibles are stated at cost less amortisation. Carrying amounts of intangibles are subject to impairment review at each
balance sheet date and where conditions exist, impairment is recognised. Computer software licenses are capitalised
on the basis of cost incurred to acquire and bring to use the specific software. These costs are amortised over their
estimated useful life using the straight line method.

2.6
Stores and spares

Stores and spares are valued at weighted average cost. Items in transit are valued at cost comprising invoice value and
other charges incurred thereron.

2.7
Stock-in-trade

Stock-in-trade is stated at the lower of cost or net realisable value. Cost is determined using the weighted average
method except for those in transit where it represents invoice value and other charges thereon. The cost of work in
process and finished goods comprises raw materials, direct labor, other direct costs and related production overheads.

Net realisable value is the estimated selling price in the ordinary course of business less applicable variable selling
expenses.

2.8
Taxation

Current

The charge for current taxation is based on taxable income at the current rates of taxation after taking into account tax
credits and rebates available, if any.

Deferred

Deferred tax is accounted for using the balance sheet liability method on all temporary differences arising between tax
base of assets and liabilities and their carrying amounts in the financial statements. Deferred tax liability is generally
recognised for all taxable temporary differences and deferred tax asset is recognised to the extent that it is probable
that future taxable profits will be available against which the deductible temporary differences, unused tax losses and
tax credits can be utilised.
2.9
Borrowings and their cost
Borrowings are recognised initially at fair value and subsequently at amortised cost using the effective interest
method.

Borrowing costs are recognised as an expense in the period in which these are incurred except to the extent of borrowing
costs that are directly attributable to the acquisition, construction or production of a qualifying asset, which are assets
that necessarily take a substantial period of time to get ready for their intended use and are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use. Such borrowing costs are capitalised
as part of the cost of that asset.
Annual Report 2015
79
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation.
Borrowings payable within next twelve months are classified as current liabilities.
2.10 Derivative financial instruments and hedging activities

Derivatives are initially recognised at fair value on the date the Company becomes a party to a derivative contract and
are subsequently re-measured at their fair value. The Company enters into derivative transactions mainly to hedge
foreign currency liabilities or firm commitments and these are designated as fair value hedge.


Changes in the fair value of derivatives used as hedging instruments in hedging relationships that are designated and
qualify as fair value hedges are recorded in the profit and loss account, together with any changes in the fair value of
the hedged liability that are attributable as the hedged risk.

2.11 Finance lease

Leases that transfer substantially all the risks and rewards incidental to ownership of an asset are classified as finance
leases. Assets on finance lease are capitalised at the commencement of the lease term at the lower of the fair value
of leased assets and the present value of minimum lease payments, each determined at the inception of the lease.
Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate of balance
outstanding. The finance cost is charged to profit and loss account and is included under finance costs.
2.12

Trade and other payables are obligation to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less.
If not, they are presented as non-current liabilities.

Trade and other payables are carried at cost which is the fair value of the consideration to be paid in future for goods
and services.

2.13
Foreign currencies

Transactions in foreign currencies are recorded in rupees at the rates of exchange approximating those prevailing at the
date of transaction. Monetary assets and liabilities in foreign currencies are translated into rupees using the exchange
rates approximating those prevailing at the balance sheet date. Exchange differences are taken to profit and loss
account currently.

The financial statements are presented in Pakistan Rupees, which is the Companys functional and presentation
currency.
2.14
Financial assets and liabilities

All financial assets and liabilities are initially measured at cost, which is the fair value of the consideration given and
received respectively. These financial assets and liabilities are subsequently measured at fair value, amortised cost or
cost, as the case may be.
2.16 Staff retirement benefits - defined benefit plan

Defined benefit plans define an amount of pension or gratuity that an employee will receive on or after retirement, usually
dependent on one or more factors, such as age, years of service and compensation. A defined benefit plan is a plan
that is not a defined contribution plan. The liability recognised in the balance sheet in respect of defined benefit plan is
the present value of the defined benefit obligation at the end of the reporting period. The defined benefit obligation is
calculated annually by an independent actuary using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash flows using
interest rates of high quality corporate bonds or the market rates on Government bonds. These are denominated in the
currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related
pension obligation.

2.15
Cash and cash equivalents

Cash and cash equivalents are carried in the balance sheet at cost. For the purposes of the cash flow statement, cash
and cash equivalents comprise cash in hand, balances with banks on current, savings and deposit accounts with three
months maturity, and short-term running finance.
80


The Company operates an unfunded gratuity scheme for all its permanent employees. The scheme defines an amount
of gratuity benefit that an employee will receive on retirement subject to a minimum qualifying period of service under
the scheme. The amount of gratuity is dependent on years of service completed and career average gross pay for
management employees and years of service completed and last drawn gross pay for non-management employees.
The amount arising as a result of remeasurements are recognised in the Balance Sheet immediately, with a charge or
credit to Other Comprehensive Income in the periods in which they occur.
Past service costs are recognised immediately in profit and loss account.
2.17
Ijarah

In ijarah transactions, significant portion of the risks and rewards of ownership are retained by the lessor. Islamic Financial
Accounting Standard 2 - Ijrah requires the recognition of Ujrah payments (lease rentals) against ijarah financing as an
expense in the profit and loss account on a straight line basis over the ijarah term.
2.18
Revenue recognition

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue
can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, and is
recognised on the following basis:
-
sale is recognised when the product is dispatched to customer;

-
toll manufacturing income is recognised when the product subject to toll manufacturing is dispatched to
customer; and

-
return on savings accounts is recognised on accrual basis.
2.19
Investments

Held to maturity investments

These represent investments with fixed or determinable payments and fixed maturity where the Company has positive
intent and ability to hold such investments to maturity.

Investments are initially recognised at cost. Held to maturity investments have been valued at amortised cost using the
effective interest rate method. The difference between the initial cost and the amortised cost in case of held to maturity
investments is recognised in the profit and loss account.
Annual Report 2015
Note
2015
2014

Rupees 000
3.
PROPERTY, PLANT AND EQUIPMENT

81
Operating assets
3.1
8,582,863
8,786,806
Capital work in progress - at cost
3.2
1,104,194
1,180,716
Major spare parts and stand-by equipment
308,569
251,396
9,995,626
10,218,918

3.1
Operating assets
TOTAL
Building
Plant and
Electrical
Office
Furniture Motor Vehicles
and civil
Machinery equipments equipments
and
Owned
Held
works on
fixtures
Under
leasehold
finance
land
leases
------------------------------------------------------------------ Rupees 000 ------------------------------------------------------------------
Leasehold
land
Net carrying value basis

Year ended June 30, 2015
Opening net book value (NBV)
Additions (at cost) - note 3.1.1
Disposals (at NBV) - note 3.1.3
Depreciation charge
Closing net book value (NBV)
Gross carrying value basis

At June 30, 2015
Cost or Revalued amount

Accumulated depreciation
Net book value (NBV)

Year ended June 30, 2014
Opening net book value (NBV)

Reclassification (at NBV)
Additions (at cost)
Disposals (at NBV)
Revaluation surplus
Depreciation charge
Closing net book value (NBV)

At June 30, 2014
Cost
Accumulated depreciation
Net book value (NBV)
Useful lives in years
508,200 1,088,219
-
85,826
-
-
(9,555)
(35,851)
6,449,539
56,554
-
(245,242)
705,685
1,000
-
(49,526)
21,848
1,668
(313)
(9,620)
4,958
1,594
-
(2,459)
498,645
1,138,194
6,260,851
657,159
13,583
4,093
508,200
(9,555)
1,174,045
(35,851)
6,921,606
(660,755)
792,977
(135,818)
498,645
1,138,194
6,260,851
657,159
6,614,452
29,130
43,218
-
-
(237,261)
784,226
(29,130)
3,146
-
-
(52,557)
6,449,539
705,685
21,848
4,958
6,865,052
(415,513)
6,449,539
791,977
(86,292)
705,685
50,620
(28,772)
21,848
13,349
(8,391)
4,958
3 - 33
10 - 33
3-5
226,312
-
-
-
286,053
(4,165)
508,200
950,061
-
5,255
-
162,497
(29,594)
1,088,219
508,200 1,088,219
-
-
508,200 1,088,219
60
20 - 33
51,497
14,943
(37,914) (10,850)
13,583
4,093
27,399
6,595
-
-
5,104
629
(63)
-
-
-
(10,592)
(2,266)
8,357 8,786,806
10,482 157,124
(5,476)
(5,789)
(3,025) (355,278)
- 10,338 8,582,863
79
(79)
16,915 9,480,262
(6,577) (897,399)
- 10,338 8,582,863
2 15,374 8,624,421
-
-
- 4,076
61,428
- (5,922)
(5,985)
-
- 448,550
(2) (5,171) (341,608)
-
8,357 8,786,806
79 20,717 9,338,213
(79) (12,360) (551,407)
- 8,357 8,786,806
5
3.1.1 This includes transferred from capital work in progress amounting to Rs. 123.3 million (2014: Rs. 8.4 million) - note 3.2.
Had there been no revaluation, the net book values of leasehold land and buildings on leasehold land as at June 30,
2015 would have been Rs. 217.98 million (2014: Rs. 222.15 million) and Rs. 889.8 million (2014: Rs. 925.72 million)
respectively.
3.1.2 The Companys leasehold land measuring 50 acres located at Plot No: DSU-45, Steel Mill, Downstream
Industrial Estate, Bin Qasim, Karachi and the buildings thereon were revalued in 2014 resulting in a surplus
of Rs. 448.55 million. The revaluation was carried out by an independent valuer - M/s Maricon Consultants
(Private) Limited on June 30, 2014 on the basis of present market value for similar sized plots in the near vicinity
of the leasehold land and replacement values of similar type of buildings based on present cost of construction.
82

3.1.3 The details of operating assets sold, having net book value in excess of Rs. 50,000 each are as follows:
Cost
Accumulated Net Book
Sale
Mode of Particulars of

Description
depreciation
value
proceed
disposal
purchaser

---------------------------- Rupees 000 ---------------------------
Motor Vehicle
11,157
6,694
4,463
3,910 Negotiation

Motor Vehicle
1,913
1,054
859
861 Negotiation

Motor Vehicle
1,214
1,060
154
152 Negotiation

14,284
8,808
5,476
4,923

Assets having book

value of less than

Rs. 50,000 each

Office equipments
3.2
791
478
313
305
15,075
9,286
5,789
5,228
Capital work in progress

2015
Balance as Additions
at July 1, during the
2014
year
Transfers - Balance as Balance as

note 3.2.1 at June 30, at July 1,
2015
2013
Mr. Kashif Shah, ex-CEO

45/1, 21st Street, Khayaban-e-
Mujahid, Phase V, DHA,
Karachi
Mr. Kashif Shah, ex-CEO
45/1, 21st Street, Khayaban-e-
Mujahid, Phase V,
DHA, Karachi
Muhammad Iqbal - R-46,
Sector 6C, Abdullah
Bunglows, Surjani Town,
Karachi
2014
Additions
during the
year
Transfersnote 3.2.1
Balance as
at June 30,
2014
------------------------------------------- Rupees 000 ------------------------------------------
Annual Report 2015
Civil Works & Prefabricated

Building
36,777
3,067
(39,844)
-
21,923
19,027
(4,173)
36,777

Plant and Machinery
- note 3.2.2
747,027 43,712
(54,663) 736,076
582,150
169,063
(4,186)
747,027

Other ancillary cost
- note 3.2.3
392,969
-
(26,518) 366,451
300,437
92,532
- 392,969

Electrical Works
2,172
37
(2,209)
-
-
2,172
-
2,172

Advances to suppliers
1,771
-
(104)
1,667
3,343
2,073
(3,645)
1,771

Total
1,180,716
46,816
(123,338) 1,104,194
907,853
284,867
(12,004) 1,180,716
83
3.2.1 This includes transfers to operating assets amounting to Rs. 123.3 million (2014: Rs. 8.4 million) and transfers to major
spare parts and stand-by equipments Rs. Nil (2014: Rs 3.6 million).

3.2.2 This mainly includes capital expenditure on Electrolytic Cleaning Line (ECL), the commercial production of which, is
expected to commence in the next year.

3.2.3 Borrowing cost capitalised during the year amounts to Rs. Nil (2014: Rs. 92.53 million) and includes Rs. Nil (2014: Rs.
10.9 million) mark-up on loan from related party.


2015
2014
4.
INTANGIBLES - Computer Software
Rupees 000
Cost
20,385
19,351
Accumulated amortisation
(7,118)
(4,547)
Net book value
13,267
14,804
Opening net book value
14,804
20,439
Additions during the year
1,034
Disposals during the year
Amortisation for the year
Closing net book value
4.1
Amortisation is charged at the rate of 10% to 33.33% (2014: 10% to 33.33%) per annum.
5.
LONG-TERM LOANS AND ADVANCES - considered good
-
(2,571)
Shares
(2,246)
13,267 14,804
2014
2015
Motor
vehicles
(3,389)
Personal
Total
Total
---------------------------------------- Rupees 000 ---------------------------------------
Due from executives
Due from employees

5.1
1,718
-
1,718
177
367
2,262
2,294
526
170
696
582
703
537
2,958
2,876
Reconciliation of carrying amount of loans and advances to executives and employees:

2014
2015
Executives
Employees
Total
Total
Balance at July 1
2,294
582
2,876
4,429
367
170
537
363
Repayments
(399)
(56)
(455)
(1,916)
2,262
696
2,958
2,876
Disbursements
Balance as at June 30
----------------------------- Rupees 000 -------------------------
84

5.2 Loans to employees have been provided to facilitate purchase of vehicles and to meet their contingency needs in
accordance with the Companys policy and are repayable after a period of four to five years. Further, advances to
employees have been provided to facilitate purchase of shares of the Company allotted to employees at the time of offer
for sale for listing of the Company. Loans and advances to employees are interest free.
5.3
The maximum aggregate amount of loans and advances due from executives and employees at the end of any month
during the year was Rs. 3.47 million (2014: Rs. 4.12 million).

2015
2014

Rupees 000
6.
LONG-TERM DEPOSITS AND PREPAYMENTS

Security deposits

- Energy, power and fuel sector
35,073
35,073
- Financial Institutions, banking and

leasing companies
6,902
4,809
- Hotels and clubs
2,000
2,000
- Steel sector
1,299
1,299
- Others
1,272
1,784

Prepayments
46,546
44,965

- Energy, power and fuel sector

1,253
47,799
2,913
47,878
(1,469,724)
(47,206)
(210,142)
(1,650,112)
(56,874)
(287,917)
50
44
6,889
87,318
2,742,680
1,109,909
502
19
5,153
152,806
2,560,576
724,153

7.

The analysis of deferred tax assets and deferred

tax liabilities is as follows:
Deferred tax liabilities:
Annual Report 2015
85
DEFERRED TAX
- property, plant and equipment

- surplus on revaluation of fixed assets
- long-term finance - note 7.1
Deferred tax assets:
- liability against assets subject to finance lease
- intangibles
- provision for staff retirement benefit
- pre-commencement expenditure
- carried forward losses - note 7.2


7.1
This represents the deferred tax impact of gain recorded as a result of extinguishment of the old financial liability and
recognition of the new financial liability at fair value. This is consequent to the restructuring of the Companys finance
facilities as fully explained in note 16.1.
7.2
The Company has an aggregate amount of Rs. 9.1 billion (2014: Rs. 7.32 billion) in respect of tax losses as at June 30,
2015. The management carries periodic assessment to assess the benefit of these losses as the company would be able
to set off the profit earned in future years against these carry forward losses. Based on the assessment management
has recognised deferred tax debit balance on losses amounting to Rs. 2.74 billion (2014: Rs. 2.56 billion) including an
amount of Rs. 1.75 billion (2014: Rs. 1.85 billion) on unabsorbed tax depreciation and initial allowance of Rs. 5.82 billion
(2014: Rs. 5.3 billion). The amount of this benefit has been determined based on the projected financial statements of
the Company for future years. The determination of future taxable profit is most sensitive to certain key assumptions
such as capacity utilisation, gross margin percentage, inflation and KIBOR rates. Any significant change in the key
assumptions may have an effect on the realisability of the deferred tax asset.

2015
2014

Rupees 000
8.
STORES AND SPARES

Stores
150,061
126,016
Spares 11,861
31,605
Loose tools
1,461
1,425

163,383
159,046
9. STOCK-IN-TRADE

Raw material (including in transit

Rs. Nil; 2014: Rs. 1.89 billion)
1,821,817
2,419,748

Work in process
188,001
94,523

Finished goods (including coil end sheets
Rs. 25.34 million; 2014: Rs. 27.3 million)
419,291
827,269

Packing and other materials
4,351
5,754

10.
2,433,460
3,347,294
TRADE DEBTS - Considered good

Advances - considered good

- executives

- other employees

- suppliers and others

Receivable from government - note 11.1
Deposits

Prepayments - note 11.2

546
541
44,665
254,782
-
8,808
309,342
505
1,085
70,750
25
10,159
82,524

There are no trade debts that are past due or impaired.

11. ADVANCES, DEPOSITS AND PREPAYMENTS
86

11.1 This comprises of the following which has been paid to the Collector of Customs and the Nazir of the Sindh High Court
in the form of pay orders during the year:
Paid during
the
year
Returned
during the
year
Balance
outstanding
------------------- Rupees 000 ------------------

Custom duty

Regulatory duty

Sales tax thereon

208,037
48,905
43,680
300,622
(36,446)
(2,734)
(6,660)
(45,840)
171,591
46,171
37,020
254,782
This amount in respect of custom duty and sales tax has been paid by the Company under protest on the basis of
assessment by the Collector of Customs. During the year, the Company imported HRC from China under customs SRO
659(I)2007 dated June 30, 2007 and filed goods declaration under HS code 7225.3000, being alloy steel, which is
subject to 0% customs duty. However, the Collector of Customs has assessed these imports under HS code 7208.3890,
being non-alloy steel, which is subject to 5% customs duty under the said SRO.
The Company, in line with the practice adopted by other importers, has filed petition in the Sindh High Court against
Custom Authorities for every import it makes and has obtained an interim order for release of goods by paying 50% of
the custom duty to the Collector of Customs and remaining 50% amount to the Nazir of the Sindh High Court through a
pay order or by depositing post dated cheques for the same. As at June 30, 2015, post dated cheques deposited with
the Nazir of the Sindh High Court amount to Rs. 16.16 million in respect of custom duty and Rs. 2.75 million in respect
of sales tax thereon.
Regulatory duty at the rate of 12.5% and sales tax at the rate of 17% thereon has also been paid to Collector of Customs
under protest on the basis of the same assessment, as per S.R.O. 246 (I)/2015 dated March 27, 2015, which is an
amendment to the S.R.O.568(I)/2014 dated 26 June 2014. The Company also pays this amount through a pay order.
The Company is confident that they have filed Goods Declarations as per the specifications and are exempt from
custom duty. As per the lawyers opinion obtained by the Company, the issue in question is subjudice in the Sindh
High Court in a large number of Constitutional Petitions and a judgement in such cases will also be applicable on the
Company. Further, as per the lawyers opinion, there is a strong case and accordingly the Company considers this
amount as recoverable.
Further, the release of pay orders deposited during the year in this respect amounting to Rs. 45.84 million on finalisation
of provisional assessment in certain cases also support the Companys contention.
11.2 This includes Rs. 1.71 million (2014: Rs. 874 thousand) prepaid to a related party on account of rent of head office.
Annual Report 2015

2015
2014

Rupees 000
12. OTHER RECEIVABLES
87

Receivable from Etimaad Engineering

(Private) Limited - note 12.1

Margin on import letters of credit

Others

138,485
84,511
4,674
227,670
138,485
361,120
2,747
502,352

At present, the Company is in dispute with the contractor in respect of the outstanding balance of advances. Initially
Etimaad had filed a winding up petition against the Company in the Sindh High Court alleging that the Company has
failed to clear its unpaid invoices of Rs. 230 million with 30 days of the Demand Notice which stands due and payable
according to the petitioner. Whereas to the contrary a sum of Rs. 237 million, before recovery of aforesaid amount, was
receivable from the petitioner as per books of accounts of the Company.
However, for an early resolution of this dispute, the Company had filed a Suit before the Honourable High Court for
appointment of an Arbitrator in terms of the contract and under section 20 of Arbitration Act, 1940, for resolution of the
dispute / difference between the parties upon their respective claims to be submitted before the Arbitrator. Accordingly,
the Honourable High Court upheld the Companys contention and disposed of the said Suit and the matter was referred
to be resolved through Arbitrator appointed by consent of both parties.
In 2012, arbitration proceedings were initiated in which the Company had filed a claim for recovery of the aforesaid over
payments made to Etimaad alongwith consequential damages aggregating to sum of Rs. 1,109 million together with
mark-up at the KIBOR notified by the State Bank of Pakistan from the date the amount became payable till the same
is realised. A further sum of Rs. 20 million had also been claimed in lieu of costs. The above claim is net of Rs. 99.37
million which have already been recovered from Etimaad. Etimaad has made a capricious counterclaim of Rs. 825.49
million with mark-up at 16% per annum, which is a mere retort to the Companys bona fide claim. As at June 30, 2014,
the arbitration proceedings had been concluded and the matter was reserved for announcement of the Award.
During the reporting period, the sole Arbitrator has passed the Award dated September 25, 2014, in favour of Etimaad,
whereby all claims of the Company have been rejected on the basis of insufficient evidence and inadequate proof. After
hearing the case on numerous dates and then reserving the matter for almost 10 months, the Arbitrator has finally given
an Award and has stated that Etimaad is entitled to an amount of Rs. 371.73 million plus mark-up at 6% per annum. The
claim allowed is mainly for the outstanding receivables and the cancellation charges for the change orders. The rest of
the claims of Etimaad have been rejected.
The Arbitrator found in favour of the Company, and against Etimaad, an amount of Rs. 75 million on account of the
frivolous winding up petition filed by Etimaad against the Company before the Honourable High Court and as such
deducted this amount of Rs. 75 million from the amount of Rs. 371.73 million and therefore gave a final Award in favour
of Etimaad for an amount of Rs. 296.73 million plus mark-up at 6% per annum.
The Companys Legal Counsel is of the opinion that the Award is not well-reasoned, nor based on a full appreciation of
the material facts and evidence. The Legal Counsel believes that undue weight has been erroneously placed on witness
evidence where it had no nexus to the issues at hand. Further, a substantial portion of the findings are contrary to the
established principles of law which in the opinion of the Legal Counsel renders the Award illegal.
Based on the above, the Company has filed objections to the Award before the Honourable High Court praying for
setting aside the Award which is at the stage of hearing. The Legal Counsel is of the view that the Company has a good
case on merits and is likely to succeed in obtaining a favourable decision and consequently no loss is likely to arise
therefrom. Moreover, the Award has not been made rule of Court and as such is presently not executable by Etimaad
and consequently, no provision has been made in these financial statements.
12.1 This represents balance of advances given to civil contractor Etimaad Engineering (Pvt.) Limited (Etimaad) for
mobilisation and procurements. The Company awarded this contract to Etimaad on December 1, 2007 for certain civil,
mechanical and electrical works. However, Etimaad did not complete the work and discontinued the contract. Out of
the total outstanding book balance of Rs. 237.86 million, the Company has recovered Rs. 99.37 million from Etimaad on
January 5, 2012 through encashment of its advance payment bank guarantee which was taken at the time of award of
contract.
88


2015
2014

Rupees 000
13. CASH AND BANK BALANCES

With banks on

- Current accounts

- PLS savings accounts - note 13.1

Cash in hand

9,771
122,238
38,330
21,299
264
132,273
216
59,845
13.1 At June 30, 2015 the rates of mark up on PLS savings accounts ranged from 6% to 8% per annum (2014: 6% to 8%).
14.

SHARE CAPITAL
Authorised Share Capital
2015
2015
2014
(Number of shares)
2014
Rupees 000

650,000,000
650,000,000
Ordinary Shares of Rs. 10 each
6,500,000
6,500,000

250,000,000
250,000,000
Cumulative Preference Shares

of Rs. 10 each
2,500,000
2,500,000

900,000,000
900,000,000
9,000,000
9,000,000

Issued, subscribed and paid-up capital
2015
Ordinary Shares
2014
2015
Rupees 000
(Number of shares)

270,955,590
270,417,299

177,073
538,291

Ordinary Shares of Rs. 10 each

Opening
(KSE Symbol - ASLPS) of Rs. 10
each converted to Ordinary Shares
of Rs. 10 each during the year

271,132,663
270,955,590
2014
2,709,556
2,704,173
1,771
5,383
2,711,327
2,709,556
728,645
734,028
(1,771)
(5,383)
726,874
728,645
1,719,100
2,445,974
728,645

2015
2014
(Number of shares)
Annual Report 2015
89
72,864,468
73,402,759

(KSE Symbol - ASLPS) of

Rs. 10 each Opening
(177,073)
(538,291)


each converted to Ordinary Shares

of Rs. 10 each during the year

72,687,395
72,864,468


each Closing - note 14.3, 14.4

and 14.5

171,910,029
- Cumulative Preference Shares

(KSE Symbol - ASLCPS) of Rs. 10

each issued during the year

- note 14.1 and 14.6

244,597,424
72,864,468

14.1 171,910,029 Cumulative Preference Shares (ASLCPS) were issued during the year on which issuance costs incurred
were Rs. 7.04 million which has been accounted for as a deduction from equity net of tax of Rs. 2.11 million.
14.2 80,008,250 (2014: 80,008,250) Ordinary Shares, 34,570,058 ASLPS (2014: 34,570,058) and 56,493,515 ASLCPS
(2014: Nil) Cumulative Preference Shares of Rs. 10 each as at June 30, 2015 are held by Arif Habib Corporation Limited
- associate company.
14.3 The rate of dividend on 72,687,395 (2014: 72,864,468) Cumulative Preference Shares (ASLPS) of Rs. 10 each is 3%
above six months KIBOR (reset every six months) which shall be converted into Ordinary Shares for which the Company
shall issue the appropriate number of Ordinary Shares.
14.4 Cumulative Preference Shares (ASLPS) are non-redeemable but convertible into Ordinary Shares at face value, after
Commercial Operations Date, as approved by the Board. The conversion price shall be Rs.10 per Ordinary Share and
for the purpose of conversion accumulated dividend not paid to the Preference Shareholders, if any, accrued upto
the date of announcement of conversion by the Company shall be taken into account for determining the number of
the Ordinary Shares to be issued upon conversion and therefore the number of Ordinary Shares to be issued to the
Preference Shareholders shall be based in the ratio 1:1, plus unpaid preferential dividends, if any.
14.5 In case the preferential dividend or any part thereof is not paid in any year, due to loss or inadequate profits, then such
unpaid dividend will accumulate and will be paid in the subsequent year(s) before any dividend is paid to the ordinary
shareholders. As the Company currently has accumulated losses, cumulative dividend on Cumulative Preference Shares
(ASLPS) amounting to Rs. 440.08 million (2014: Rs. 357.93 million) is not accounted for in these financial statements.
14.6 Issue of 50% Right Shares in terms of Cumulative Preference Shares (ASLCPS)
The shareholders of the Company in their extraordinary general meeting held on May 26, 2014 approved the issue
of 50% Right Shares in terms of Cumulative Preference Shares at par value of Rs. 10 each. 171,910,029 Cumulative
Preference Shares (ASLCPS) have been issued in the ratio of 5 Cumulative Preference Shares for every 10 Ordinary /
Cumulative Preference Shares (ASLPS) held by the existing shareholders.
The terms and conditions of such Right Shares are as follows:
-
-
The rate of preferential dividend shall be six months KIBOR plus 3% (reset every six months) which shall be
available for conversion into Ordinary Shares, for which the Company shall issue the appropriate number of
Ordinary Shares.
Preference Shares shall be convertible into Ordinary Shares at the option of the holders of Preference Shares at
any time after completion of one year from the date of subscription, as per the following criteria / basis:
a)
at face value provided that the book value of the Ordinary Shares after adjustment of all accumulated losses as
per latest half yearly / annual published accounts of the Company is Rs. 10 or more;
b)
at book value provided that the book value of the Ordinary Shares after adjustment of all accumulated losses as
per latest half yearly / annual published accounts of the Company is lower than Rs. 10.
If cash dividend is not paid in any year, due to loss or inadequate profits, then such unpaid cash dividend will
accumulate and will be paid in the subsequent year(s) subject to approval of the Board of the Company.
If the Company has announced after tax profit in any year and for the purpose of conversion, accumulated dividend
not paid to the holders of Preference Shares (ASLCPS), if any, accrued up to the date of receiving the Notice of
Conversion by the Company, shall also be taken into account for determining the number of the Ordinary Shares,
to the extent of the aforesaid announced after tax profit, to be issued upon conversion.
14.7 As the Company currently has accumulated losses, cumulative dividend on Cumulative Preference Shares (ASLCPS)
amounting to Rs. 45.61 million is not accounted for in these financial statements.
90


2015
2014

Rupees 000
15. SURPLUS ON REVALUATION OF FIXED ASSETS

Opening Balance
391,676
Surplus arising on revaluation during

the year - net of deferred tax
-

Transferred to Incremental
depreciation - net of deferred tax
(864)

Closing Balance
390,812

16. LONG-TERM FINANCE secured

Book Value as at July 1, 2014 / January 19, 2013

Present value gain on restructuring (extinguishment)

Impact of unwinding - Finance Cost

Less: Current maturity shown under
current liabilities

391,676
391,676
5,483,867
-
123,271
5,607,138
6,317,311
(992,288)
168,844
5,493,867
(10,000)
5,597,138
(10,000)
5,483,867
16.1 Original term finance facilities amounting to Rs. 6.53 billion were obtained under three Syndicate Term Finance Facility
(STFF) agreements, a Syndicated Running Finance Facility (SRFF) agreement and a Murahaba finance arrangement.
Details in relation to these facilities were as follows:
Facility

Repayment Terms
Mark-up Rate
STFF - I and
Murabaha

11 consecutive semi-annual
installments from April 2013
to April 2018
2% above six months KIBOR

to 3.28% above six months
KIBOR 3,770,000
STFF - II

10 equal semi-annual installments

from August 2013 to
February 2018
3.25% above six months

KIBOR
967,839
STFF - III

10 equal semi-annual installments

from December 2013 to
June 2018
3.25% above six months

KIBOR
779,985

SRFF
Running Finance
1% above six months KIBOR

Frozen Mark-up
-
-

Annual Report 2015
91
Outstanding
as at
January 19,
2014
Rupees 000
590,061
222,282
6,330,167
The Company entered into restructuring agreement with its lenders on January 19, 2014. As per terms of the agreement,
the above mentioned facilities and the corresponding accrued mark-up thereon (frozen mark-up) amounting to
Rs. 222.28 million have been restructured as one syndicate loan. Repayment of principal was made in one annual
installment amounting to Rs. 10 million in the current year and subsequently, eighteen unequal semi-annual installments
have to be paid, which are as follows:
-
-
-
-
Rs. 5 million each in the next year.

Rs. 250 million each for the next four years.
Rs. 375 million each for the next three and a half years.
Rs. 1.69 billion as the last installment on January 19, 2024.


Based on the agreement, the restructured facility carries mark-up at the rate of 2.74% below six months KIBOR on the
outstanding amount excluding frozen mark-up. The mark-up rate shall increase to six months KIBOR in the following
cases:
-
-
-
the Companys profit after tax turns positive.

the Companys profit after tax, after adding back any unusual and / or abnormal expense, turns positive.
the Company fails to make payment of any installment of the restructured amount, whether principal or mark-up,
on the due date for payment of such amount.
The restructured finance facility is secured against first charge on all present and future Companys fixed assets,
accounts receivables, interest in any insurance claim and equitable mortgage over land and building. Moreover, a
corporate guarantee in the aggregate amount of Rs. 1.5 billion has been issued by Arif Habib Corporation Limited
(formerly Arif Habib Securities Limited) in favor of the syndicate members.
This liability includes share of Arif Habib Corporation Limited, a related party, amounting to
(2014: Rs. 254.18 million).
Rs. 253.74 million
16.2 The facilities for opening letters of credit and guarantees as at June 30, 2015 amounted to Rs. 4.05 billion
(2014: Rs. 4.6 billion) of which the amount remained unutilised at year end was Rs.1.34 billion (2014: Rs. 625 million).

2015
2014

Rupees 000
17. LIABILITIES AGAINST ASSETS SUBJECT

TO FINANCE LEASES

Payable during:

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

Minimum Lease payments - note 17.1

Less: Finance charges not due

Less: Current portion shown under
current liabilities

Present value of finance lease liabilities

Not later than one year

Later than one year and not later than 5 years

-
3,789
3,428
1,554
1,995
1,206
11,972
1,468
10,504
6,225
2,030
1,357
1,155
620
11,387
1,597
9,790
2,988
7,516
4,840
4,950
2,988
7,516
10,504
4,840
4,950
9,790
18.
STAFF RETIREMENT BENEFIT - Gratuity
18.1 As stated in note 2.16 the Company operates an unfunded gratuity scheme for all its permanent employees. The
scheme defines an amount of gratuity benefit that an employee will receive on retirement subject to a minimum qualifying
period of service under the scheme. Actuarial valuation of the scheme is carried out every year and the latest actuarial
valuations of the scheme was carried out as at June 30, 2015.
17.1 These represent liabilities for vehicles acquired on lease. Finance charge ranging from 11.06% to 18.30% (2014: 11.06%
to 18.30%) per annum have been used as discounting factor.
92


2015
2014

Rupees 000
18.2 Balance sheet reconciliation

Present value of defined benefit obligation
22,962
14,722
14,722
8,802
2,775
1,696
(1,186)
(3,847)
22,962
17,597
13,285
(9,089)
1,537
(2,685)
(5,923)
14,722

Current service cost

Past service cost / (credit) - note 18.10

Interest cost

18.5 Remeasurement recognised in
other comprehensive income
8,802
2,775
1,696
13,273
13,285
(9,089)
1,537
5,733

Experience losses

18.6 Net recognised liability

Balance as at July 1

Expense for the year

Benefits paid

Remeasurement recognised in other
comprehensive income
(1,186)
(291)
14,722
13,273
(3,847)
15,203
5,733
(5,923)
(1,186)
(291)
22,962
14,722
18.3 Movement in the present value of

defined benefit obligation

Obligation as at July 1
Current service cost
Past service cost / (credit) - note 18.10
Interest expense
Remeasurements
Benefits paid
Obligation as at June 30
18.4 Expense recognised in profit and loss account
Balance as at June 30

2015
2014
18.7 Actuarial assumptions

Discount rate used for year end obligation
9.75% 13.25%

Expected rate of increase in salaries
8.75% 12.25%

Retirement age (years)
60 60
18.8 Mortality was assumed to be SLIC (2001-2005) set back one year (2014: EFU 61-66).
18.9 Sensitivity analysis for actuarial assumptions
Annual Report 2015
93
The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:
Impact on defined benefit obligation
Change in
Increase in
Decrease in
assumption
assumption
assumption
(Rupees in thousand)
Discount rate at June 30
1%
(1,830)
2,182
Future salary increases
1%
1,703
(1,465)
18.10 The Company changed its gratuity scheme for non-management staff from career average gross pay into number of
years of service completed to last drawn gross pay into number of years of service completed.

18.11 There is no significant change in the obligation if life expectancy increases by 1 year.
18.12 The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant.
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the
defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been
applied as when calculating the gratuity liability recognised within the balance sheet.
18.13 The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the
previous period.
18.14 Historical information for the four years is as follows:
2015
2014
2013
2012
---------------------------- Rupees 000 ---------------------------
Present value of the defined

benefit obligation
22,962
14,722
17,597

Experience adjustments - (gain) / loss
(1,186)
(2,685)
2,514
6,538
(1,806)
18.15 The average duration of the defined benefit obligation is 9 years.

2015
2014

Rupees 000
19. TRADE AND OTHER PAYABLES

Creditors:

- local

- foreign

Bills payable

Accrued liabilities

Retention money

Advance from dealers

Security deposit from dealers

Withholding tax

20.
34,103
11,071
2,506,025
130,723
7,231
28,839
8,000
49,459
993,885
3,397,276
80,840
10,115
20,887
10,000
18,437
2,744,429
11,892
4,574,354
ACCRUED MARK-UP
Accrued mark-up comprises mark-up on short term borrowings and mark-up on restructured syndicated finance facility
payable.

2015
2014

Rupees 000
21. SHORT-TERM BORROWINGS

Secured:
Short-term running finance - note 21.1
3,607,824
3,132,027
250,102
18,298
3,876,224
183,500
53,652
3,369,179
Unsecured:

Short-term finance facility - note 21.2

Sponsors loan - note 21.3

21.1 The lender wise balance of running finance facilities obtained by the Company are as follows:
94


2015
2014

Rupees 000

Sindh Bank Limited

Summit Bank Limited

Allied Bank Limited


Bank Islami Pakistan Limited

Habib Metropolitan Bank Limited

The Bank of Punjab

The Bank of Khyber

988,312
881,718
649,959
556,145
274,897
135,646
121,147
-
3,607,824
989,740
526,342
319,959
656,331
275,000
129,655
235,000
3,132,027
Facilities for running finance available from these banks amount to Rs. 3.88 billion (2014: Rs. 4.08 billion). The rates of
mark-up range between 1.75% above three months KIBOR to 3% above three months KIBOR (2014: 1.75% above three
months KIBOR to 3.5% above three months KIBOR). The balance is secured against ranking hypothecation charge over
plant, machinery and equipment and parri passu charge over the current assets and fixed assets of the Company.
21.2 This represents finance obtained from Arif Habib Corporation Limited, a related party, on mark-up basis. The facility is
of running finance nature with a maximum limit of Rs. 2 billion. It has been obtained to finance the Companys working
capital needs and for any other business as may be mutually agreed between the parties. The facility carries mark-up
at the rate of 3% above three months KIBOR.
21.3 This represents finance obtained from one of the sponsor Mr. Haseeb Rehman as approved by Board out of money
received against shares offered for sale to general public, carrying mark-up rate of 3.25% above 6 months KIBOR (2014:
3.25% above 6 months KIBOR). Prior year balance also includes loan of the same nature from Arif Habib Equity (Private)
Limited amounting to Rs.35.3 million which was paid during the year.
22.
CONTINGENCIES AND COMMITMENTS
22.1 CONTINGENCIES
22.1.1 The matter relating to dispute with Etimaad Engineering (Private) Limited is explained in note 12.1.
22.1.2 Contingency relating to an invoice raised by Universal Metal Corporation - a related party, amounting to Rs. 16.55
milion (2014: Rs. 19.49 million) against consultancy services which had to be provided to the Company in relation to the
Companys project, has not been recognised, pending verification, by its technical team, of the services delivered to the
Company.
22.2 COMMITMENTS
22.2.1 Commitments for capital expenditure outstanding as at June 30, 2015 amounted to Rs. 19.53 million (2014: Rs. 17.38
million).
Annual Report 2015
22.2.2 Commitments for rentals under ijarah arrangements amounted to Rs. 9.34 million (2014: Rs. 14.2 million) payable as
follows:

2015
2014

Rupees 000
95

Not later than 1 year

Later than 1 year but not later than 5 years

23. REVENUE
4,041
5,300
9,341
4,603
9,593
14,196

Gross Revenue - note 23.1
11,337,854
11,055,326

Less: Sales tax
(1,646,651)
(1,606,329)

Rebates and discounts
(67,333)
(58,850)

Dealers commission
(132,122)
(131,120)

Net Revenue
9,491,748
9,259,027

23.1 This includes sale of coil end sheets - scrap amounting to Rs. 281.46 million (2014: Rs. 303.2 million) and revenue from
toll manufacturing services amounting to Rs. 22.72 million (2014: Rs. 6.02 million).
23.2 Sales to three dealers exceed 10 percent of the net sales during the year, amounting to Rs. 3.9 billion
(2014: Rs. 2.5 billion).
23.3 These financial statements do not include disclosure relating to IFRS 8 Operating Segments as the Company is
considered to be a single operating segment.

2015
2014

Rupees 000
24. COST OF SALES

Raw material consumed

Salaries, wages & benefits - note 24.1

Rent, rates and taxes
Utilities

Packing charges

Stores, spares and consumables

Consultancy charges

Depreciation

Repairs & maintenance

Travelling & conveyance

Material handling charges
Communication
Insurance

Security charges

Ujrah payments
Others

Work in process - opening

Work in process - closing

Cost of goods manufactured

Finished goods - opening

Finished goods - closing

7,914,262
8,176,877
169,198
177,551
2,172
21,891
350,170
343,615
47,421
46,360
204,960
132,991
2,475
1,691
350,132
333,529
32,412
38,585
32,829
38,493
3,242
6,526
1,758
1,510
16,510
33,928
5,372
5,514
1,992
2,139
2,017
4,389
9,136,922
9,365,589
94,523
286,246
9,231,445
9,651,835
(188,001)
(94,523)
9,043,444
9,557,312
827,269
470,217
(419,291) (827,269)
407,978
(357,052)
9,451,422
9,200,260
24.1 Salaries, wages and benefits include Rs. 9.95 million (2014: Rs. 4.3 million) in respect of defined benefit plan.

Salaries and benefits - note 25.1
Commission


Utilities
Insurance

Sales communication

Depreciation and amortisation

Printing, stationery and office supplies

Ujrah payments
Others

6,605
28,758
381
567
194
275
241
386
107
-
450
37,964
3,640
28,053
877
650
182
130
282
516
86
388
697
35,501

2015
2014

Rupees 000
25. SELLING AND DISTRIBUTION COST
96

25.1 Salaries and benefits include Rs. 0.17 million (2014: Rs. 0.07 million) in respect of defined benefit plan.

2015
2014

Rupees 000
26. ADMINISTRATIVE EXPENSES

Salaries, allowances and benefits - note 26.1



Repairs and maintenance

Utilities

Communication and information technology

Printing and stationery
Insurance

Legal and professional charges

Auditors remuneration - note 26.2

Ujrah payments

Security charges
Others

48,664
7,235
7,331
17,775
14,285
3,381
2,752
2,024
5,230
6,193
1,833
1,837
2,105
3,387
124,032
56,788
16,672
9,809
15,906
16,031
3,466
5,243
1,631
2,460
1,939
2,038
1,507
2,921
3,166
139,577
26.1 Salaries, allowances and benefits include Rs. 3.15 million (2014: Rs. 1.36 million) in respect of defined benefit plan.

2015
2014

Rupees 000
26.2 Auditors remuneration

Audit fee

Fee for half year audit and other certifications

Out-of-pocket expenses

27. OTHER INCOME
Annual Report 2015
97
1,000
628
205
1,833
550
1,000
488
2,038
Income from financial assets / liabilities
Present value gain on restructuring

of finance facilities

Return on PLS savings accounts

Income from non-financial assets
-
5,258
5,258
992,288
4,832
997,120

Gain on disposal of property, plant and equipment

Gain on disposal of intangibles

Scrap sales

72
-
627
5,957
2,010
97
7,311
1,006,538


2015
2014

Rupees 000
28.
FINANCE COST

Mark up expense:

- long-term finance

- Impact of unwinding on long term finance

- short-term borrowings

- usance and other charges on import

letter of credit

Guarantee commission

Finance lease charges

Exchange loss

Bank and other charges

29. TAXATION
473,892
123,271
582,481
602,184
168,843
345,296
69,087
3,439
1,011
107,506
11,840
1,372,527
121,797
1,996
1,722
48,786
8,517
1,299,141

2015
2014

Rupees 000

Current - for the year
Deferred

96,912
(374,330)
(277,418)
91,458
(153,705)
(62,247)
(1,488,240)
(408,914)
(491,119)
3,153
96,912
110,800
2,836
(277,418)
(139,031)
1,416
91,458
(18,454)
2,364
(62,247)
(1,210,822)
(346,667)
(136,852)
(91,775)
29.1 The tax charge for the year is based on the minimum turnover tax.
29.2 Reconciliation between tax expense
and accounting loss

Accounting loss before tax

Tax at applicable tax rate of 33% (2014: 34%)

Tax effect of permanent differences

Minimum tax

Effect of change in tax rate
Others

30. BASIC EARNINGS PER SHARE

Loss after taxation attributable to

ordinary shareholders
Adjustment for cumulative preference share dividend
30.1 A diluted earnings per share has not been presented as it had anti-dilutive effect on the earnings per share.
Loss after taxation for calculation of

basic earnings per share
(1,347,674)
(438,442)

Weighted average number of ordinary shares
outstanding at the end of the year (in thousand)

Ordinary shares in issue
271,078
270,593

Rupees

Basic earnings per share - (loss)
(4.97)
(1.62)
98


2015
2014

Rupees 000
31. CASH (USED IN) / GENERATED FROM
OPERATIONS

(1,488,240)
(408,914)

Add / (less): Adjustments for non-cash
charges and other items


Finance lease charges
Mark up charges
Provision for staff retirement benefits
Present value gain on restructuring of
finance facilities

Return on PLS savings accounts

Loss / (gain) on disposal of fixed assets

Gain on disposal (return) of intangibles

Profit before working capital changes
357,849
1,011
1,248,731
13,273
343,854
1,722
1,238,120
5,733
-
(5,258)
561
-
1,616,167
127,927
(992,288)
(4,832)
(2,010)
(97)
590,202
181,288

2015
2014

Rupees 000

Effect on cash flow due to
working capital changes

(Increase) / decrease in current assets

Stores and spares
(4,337)
(13,871)

Stock-in-trade
913,834
(1,023,988)

Trade debts
116,238
(1,479)

(226,818)
(12,373)

Other receivables
274,682
(275,089)

Tax refunds due from Government - Sales tax
(21,646)
(49,112)

1,051,953
(1,375,912)

(Decrease) / increase in current liabilities

(1,829,925)
2,082,700

(777,972)
706,788

Cash (used in) / generated from operations
(650,045)
888,076
32.
CASH AND CASH EQUIVALENTS
Annual Report 2015


Short-term running finance

99
132,273
(3,607,824)
(3,475,551)
59,845
(3,132,027)
(3,072,182)


2015
2014

Rupees 000
33. CASH FLOW STATEMENT - Direct method

CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from customers

9,607,986
9,257,548
Cash paid to suppliers / service providers
and employees
(10,258,034)
(8,366,819)

Income taxes refund / (paid)
27,680
(289,072)

Mark-up on loans paid
(1,145,078)
(1,251,683)

Return on bank deposits received
5,418
5,200

Staff retirement benefits paid
(3,847)
(5,923)

Net cash used in operating activities
(1,765,875)
(650,749)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment

(137,775)
(240,603)
Acquisition of intangible assets
(1,034)
Sale proceeds on disposal of property,
plant and equipment
5,228
7,995

Proceeds on disposal of intangible assets
-
3,486

Net cash used in investing activities
(133,581)
(229,122)

CASH FLOWS FROM FINANCING ACTIVITIES

34.
Share deposit money received

-
236,924
Receipts against issue of
right shares (preference shares) net of issuance costs
1,475,136
Repayment of long-term finance
(10,000)
(394,200)
Syndicate running finance obtained
66,602
Repayment of sponsors loan
(35,354)
Short-term borrowing obtained
-
183,500
Repayment of short-term borrowing
-
(500,000)
Decrease in liabilities against assets
(297)
(4,297)
Net cash generated from / (used in)
financing activities
1,496,087
(478,073)
Net decrease in cash and cash equivalents
(403,369)
(1,357,944)
Cash and cash equivalents at
beginning of the year
(3,072,182)
(1,714,238)
Cash and cash equivalents at end
of the year - note 32
(3,475,551) (3,072,182)
TRANSACTIONS WITH RELATED PARTIES
34.1 Disclosure of transactions with related parties during the year are as follows:

2015
2014

Rupees 000

Associated companies:

- Finance facility utilised
3,480,035
919,000

- Repayment of finance facility utilised
3,413,433
735,500

- Markup on finance facility paid
87,159
25,720

- Repayment of sponsors loan
35,353

- Issue of right shares
564,935

- Share deposit money received
-
236,924

- Purchase of raw material
2,192,934
803,046

- Purchase of construction materials
-
1,143

- Reimbursement of expenses
-
1,623

100


2015
2014

Rupees 000

Other related parties:

- Issue of right shares
1,084,295

- Commission on sales
28,757
28,053

- Rent and maintenance expense
3,499
9,941

Key management
compensation:
- Salaries and other short-term

employee benefits
3,407
14,447

- Post retirement benefits
-
536
34.2 Raw material is purchased from Metal One Corporation, Japan - an associate, based on negotiated terms and condtions.
34.3 The status of outstanding balances with related parties as at June 30, 2015 is included in the respective notes to the
financial statements. These are settled in the ordinary course of business.
35.
REMUNERATION TO CHIEF EXECUTIVE, DIRECTOR AND EXECUTIVES
The aggregate amounts charged in these financial statements for remuneration to the Chief Executive Officer, Director
and Executives of the Company are as follows:
Chief Executive
2015
Executive Director
2015
2014
Executives
2015
2014
2014
------------------------------------------------------- Rupees 000 ------------------------------------------------------
Managerial remuneration
3,407
-
536
Reimbursable expenses
1,014
Lease rentals
-

3,407

Annual Report 2015
Retirement benefits
101
8,936
-
10,486
3,651
-
846
-
4,497
100,999
90,273
8,118
2,746
8,484
8,952
5,002 4,034
122,603 106,005
Number of persons
In addition to the above, the Chief Executive Officer, Executive Director and certain Executives are also provided with
Company maintained vehicles, security guards, mobile phone, hospitalisation and life insurance in accordance with the
Companys policy.
1 1
93
81
36. NUMBER OF EMPLOYEES

2015
2014

Number of employees at June 30

- Regular
351
351

- Contractual
31
31

Average number of employees during the year

- Regular
- Contractual
351
31
335
37

37.
FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
37.1 Financial risk factors

The Companys activities expose it to variety of financial risks: market risk (including currency risk and interest rate
risk), credit risk and liquidity risk. The Companys overall risk management programme focuses on having cost effective
funding as well as managing financial risk to minimise earnings volatility and provide maximum return to shareholders.
37.2 Financial assets and liabilities by category and their respective maturities

Interest bearing
Non-interest bearing
Total

Maturity
Maturity
Total
Maturity Maturity
Total
up to one after one
up to one after one
year
year
year
year
------------------------------------------- Rupees 000 -------------------------------------------
FINANCIAL ASSETS
Loans and receivables

Deposits
Loans to employees
Trade debtors
Other receivables
-
-
-
-
122,238
2015 122,238
-
-
-
-
122,238
122,238
-
-
76,261
227,670
10,035
313,966
46,546
2,958
-
-
-
49,504
46,546
2,958
76,261
227,670
10,035
363,470
46,546
2,958
76,261
227,670
132,273
485,708
FINANCIAL LIABILITIES
At amortised cost
Long-term finance
Short-term finance
Liabilities against assets
Accrued mark-up
2015
5,597,138
-
5,607,138
3,876,224
2,988
-
-
3,889,212
7,516
-
-
5,604,654
10,504
-
-
9,493,866
-
-
-
2,744,429
264,857
3,009,286
-
-
-
-
-
5,607,138
3,876,224
-
10,504
2,744,429
2,744,429
264,857
264,857
3,009,286 12,503,152
FINANCIAL ASSETS
Loans and receivables
Deposits
Loans to employees
Trade debtors
Other receivables
Accrued mark-up
-
-
-
25
44,965
44,990
44,990
-
-
-
-
2,876
2,876
2,876
-
-
-
192,499
-
192,499
192,499
-
-
-
502,352
-
502,352
502,352
-
-
-
160
-
160
160
21,299
-
21,299
38,546
-
38,546
59,845
2014
21,299
-
21,299
733,582
47,841
781,423
802,722
FINANCIAL LIABILITIES

At amortised cost
Long-term finance
10,000
5,483,867
5,493,867
-
-
- 5,493,867
Short-term finance
3,369,179
- 3,369,179
-
-
- 3,369,179
Liabilities against assets
4,840
4,950
9,790
-
-
-
9,790
-
-
- 4,574,354
- 4,574,354
4,574,354
Accrued mark-up
-
-
-
284,475
-
284,475
284,475
2014
3,384,019
5,488,817
8,872,836
4,858,829
- 4,858,829 13,731,665
10,000
3,876,224
102

a)
Market Risk
i.
Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in the market interest
rates. As per market practices Company borrowings are on variable interest rate exposing company to interest
rate risk.
At June 30, 2015, the Company has variable interest bearing financial liabilities of Rs. 9.49 billion (2014: Rs. 8.87
billion), and had the interest rate varied by 200 basis points with all the other variables held constant, loss before
tax for the year would have been approximately Rs. 189.88 million (2014: Rs. 177.46 million) higher / lower, mainly
as a result of higher / lower interest expense on floating rate borrowings.
ii.
Foreign exchange risk
Foreign currency risk arises mainly where payables and receivables exist due to transactions in foreign
currencies. At June 30, 2015 trade and other payables exposed to foreign currency risk amount to Rs. 2.51 billion
(2014: Rs. 3.4 billion). Further, as at balance sheet date, the Company has exposure against open letters of credit
of Rs. 4.05 billion (2014: Rs. 3.9 billion) denominated in foreign currencies.
As at June 30, 2015, if the Pakistani Rupee had weakened / strengthened by -3% against Japanese Yen with all
other variables held constant, loss before tax for the year would have been lower / higher by Rs. 0.28 million (2014:
Rs. 0.32 million) mainly as a result of foreign exchange losses / gains on translation of Japanese Yen denominated
as financial assets or liabilities.
As at June 30, 2015, if the Pakistani Rupee had weakened / strengthened by 4% against US Dollar with all other
variables held constant, loss before tax for the year would have been lower / higher by Rs. 100.33 million (2014:
Rs. 175.11 million) mainly as a result of foreign exchange losses / gains on translation of US Dollar denominated
as financial assets or liabilities.
The following table summarises the financial currency exposure as on June 30, 2015 and 2014 that are subject
to foreign currency risk and shows the estimated changes in the value of such exposure assuming the underlying
exchange rates are applied immediately and uniformly across all currencies. The changes in value do not
necessarily reflect the best or worst case scenarios and actual results may differ. The analysis assumes that all
other variables, in particular, interest rate, remain constant.
Carrying value
of foreign
currency
Estimated fair value assuming a hypothetical

percentage increase / (decrease) in the value of
foreign currencies versus Pak Rupee
(20%)
(10%) (1%) 1%
10% 20%
Annual Report 2015

June 30, 2015 - (Rupees in billion)
4.05
3.24
3.65
4.01
4.09
4.46

June 30, 2014 - (Rupees in billion)
3.9
3.12
3.51
3.86
3.94
4.29
103
4.86
4.68
b)
Credit risk
Credit risk represents the accounting loss that would be recognised at the reporting date if counterparties failed to
perform as contracted. The maximum exposure to credit risk is equal to the carrying amount of financial assets.
Out of the total financial assets of Rs. 485.71 million (2014: Rs. 802.72 million) the financial assets exposed to the
credit risk amounts to Rs. 261.29 million (2014: Rs. 375.97 million). The carrying values of financial assets which
are neither past due nor impaired are as under:


2015
2014

Rupees 000
Deposits

Other receivables

Loans to employees

Accrued mark-up

Trade debts

Cash and Bank balances

46,546
44,990
89,185
363,867
2,958
2,876
160
76,261
192,499
132,273
59,845
347,223
664,237
The credit quality of deposits and other receivables which are neither past due nor impaired can be assessed with
reference to external credit ratings as follows:
Ratings

2015
2014

Short
Long
Rating

Rupees 000
term
term
Agency
Other receivables also include an amount of Rs. 138.5 million (2014: Rs. 138.5 million) receivable from Etimaad
Engineering (Private) Limited, which is past due and is considered good.
Loans to employees are not exposed to any material credit risk since these are secured against motor vehicles
and shares for which these were granted.
For trade debts, internal risk assessment process determines the credit quality of the customers, taking into
account their financial positions, past experiences and other factors. The carrying amount of trade debts relates
to a number of independent customers, from whom there is no recent history of default.
Bank balances and accrued mark-up thereon represent low credit risk as they are placed with banks having good
credit ratings assigned by credit rating agencies.
The credit quality of the Companys bank balances can be assessed with reference to external credit ratings as
follows:

Bank Alfalah Limited
A1+
AA
PACRA
-
98,136

Habib Metropolitan Bank Limited
A1+
AA+
PACRA
-
196,137

KASB Bank Limited
A3
BBB
PACRA
-
14,846

K-Electric Limited
A1
AA-
PACRA
33,000
33,000

A-1+
AAA
JCR-VIS
-
52,000

Pakistan State Oil Company Limited
A1+
AA
PACRA
1,590
1,590

NIB Bank Limited
A1+
AA-
PACRA
84,003

Others
-
-
-
17,138
13,148
135,731 408,857
104

Ratings

2015
2014

Short
Long
Rating

Rupees 000
term
term
Agency

Allied Bank Limited
A1+
AA+
PACRA
Askari Bank Limited
A1+
AA
JCR-VIS
744
3,046
Bank Alfalah Limited
A1+
AA
PACRA
1,732
33,051
Bank Al-Habib Limited
A1+
AA+
PACRA
1,479
69
Bank Islami Pakistan Limited
A1
A+
PACRA
1,804
A-
A-2 Standard & Poors
Barclays Bank Limited
Faysal Bank Limited
JS Bank Limited
1,688
1,599
213
132
A1+
AA
PACRA
1,634
4,676
A1
A+
PACRA
84
541
KASB Bank Limited
A3
BBB
PACRA
MCB Bank Limited
A1+
AAA
PACRA
176
227
585
A-1+
AAA
PACRA
2,709
732
NIB Bank Limited
A1+
AA-
PACRA
82,905
13,920
Silk Bank Limited
A-2
A-
JCR-VIS
131
125
Sindh Bank Limited
A-1+
AA
JCR-VIS
34,902
300
Standard Chartered Bank

(Pakistan) Limited
A1+
AAA
PACRA
126
98
Summit Bank Limited
A-1
JCR-VIS
96
96
The Bank of Khyber
A1
PACRA
567
The Bank of Punjab
A1+
AA-
PACRA
1,019
416
c)
Liquidity risk
Liquidity risk represents the risk that the Company will encounter difficulties in meeting obligations associated with
financial liabilities.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability
of funding through an adequate amount of committed credit facilities. Due to dynamic nature of the business, the
Company maintains flexibility in funding by maintaining committed credit lines available.
The Companys liquidity management involves projecting cash flows and considering the level of liquid assets
necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory
requirements and maintaining debt financing plans.

d) Fair values of the financial instruments
Annual Report 2015
105
The carrying value of all the financial instruments reflected in the financial statements approximate their fair values.
38.
CAPITAL RISK MANAGEMENT
The Companys objectives when managing capital are to safeguard the Companys ability to continue as a going concern
in order to provide returns for shareholders, benefit for other stakeholders and to maintain an optimal capital stru ture to
reduce the cost of capital.

The Company finances its operations through equity, borrowings and management of working capital with a view to
maintain an appropriate mix between various sources of finance to minimise risk.
The debt to capital ratios at June 30, 2015 and at June 30, 2014 were as follows:

2015
2014

Rupees 000

Total borrowings
9,483,362
8,863,046

Cash and bank - note 13
(132,273)
(59,845)

Margin on import letters of credit - note 12
(84,511)
(361,120)

Net debt
9,266,578
8,442,081
Equity
2,419,936
1,905,222

Total capital
11,686,514
10,347,303

Debt to capital ratio
0.79 0.82

2015
2014
39.
CAPACITY AND PRODUCTION - in metric tonnes

Annual name plate capacity
220,000
220,000

Production
134,272
127,384

40. DATE OF AUTHORISATION FOR ISSUE
These financial statements were approved and authorised for issue by the Board of Directors of the Company on
10 September 2015.
CHIEF EXECUTIVE
DIRECTOR
106
Corporate Calendar of Major Events

Results
The Company follows the period of July 1 to June 30 as the Financial Year.
For the Financial year ending on 30 June 2016, Financial Results will be announced as per the following tentative schedule:
1st quarter ending September 30, 2015
Last week of October 2015
2nd quarter ending December 31, 2015
Last week of February 2016
3rd quarter ending March 31, 2016
Last week of April 2016
Annual Audited Accounts ending June 30, 2016
Last week of August 2016
Issuance of Annual Report
Annual Report 2015
21 days before AGM i.e. on 5 October 2015.
107
Other Information
List of Abbreviations
Arif Habib Group
Arif Habib Limited
Companys Cumulative Preference Shares - II
Companys Cumulative Preference Shares - I
Companys Ordinary Shares
Aisha Steel Mills Limited (the Company)
Code of Corporate Governance
Chief Executive Officer
Chief Financial Officer
Commercial Operation Date
Cold Rolled Coils
Electrolytic Cleaning Line
Hot Rolled Coils
Institute of Chartered Accountant of Pakistan
International Federation of Accountant (IFAC)
Islamic Financial Accounting Standards
International Financial Reporting Standards
Japan Credit Rating Agency Vital Information Services (Private) Limited
Pakistan Credit Rating Agency
Securities and Exchange Commission of Pakistan
Syndicate Running Finance Facility
Syndicate Term Finance Facility
AHCL:
AHG:
AHL:
ASLCPS:
ASLPS:
ASLS:
ASML:
CCG:
CEO:
CFO:
COD:
CRC:
ECL:
HRC:
ICAP:
IFAC:
IFAS:
IFRSs:
JCR-VIS:
PACRA:
SECP:
SRFF:
STFF:
108
Form of Proxy
11th Annual General Meeting
The Company Secretary
Arif Habib Centre
23, M.T, Khan Road
Karachi.
I/we ____________________________________of ___________________________being a member(s) of Aisha Steel

Mills Limited holding ________________________________________________________________ Ordinary/Preference
Share as per CDC A/c. No. ___________________________hereby appoint Mr/Mrs/Miss___________________________
___________________________________________________________________________
______________________________of (full address) _______________________________________________________
____________________________________________________________________________________or failing him/her
Mr/Mrs/Miss ___________________________________________________________________________of (full address)
_________________________________________________________________________________________________
(being member of the Company) as my/our Proxy to attend, act vote for me/us and on my/our behalf at the Eleventh Annual
General Meeting of the Company to be held on 26 October 2015 and/or any adjournment thereof.
Signed this ______________ day of ______________ 2015.

Witnesses:
1.
Name:
___________________________________
Address:
___________________________________
CNIC No.: ___________________________________

Signature: ___________________________________
2.
Name:
___________________________________
Address:
___________________________________
Signature on
Rs. 5/Revenue Stamp
CNIC No.: ___________________________________

Signature: ___________________________________
NOTES:
1.
2.
3.
4.
5.
A member entitled to attend and vote at the meeting may appoint another member as his/her proxy who shall have
such rights as respects attending, speaking and voting at the meeting as are available to a member.
Proxy shall authenticate his/her identity by showing his/her identity by showing his/her original passport and bring folio
number at the time of attending the meeting.
In order to be effective, the proxy Form must be received at the office of our Registrar M/s. Central Depository
Comapnay of Pakistan, Share Registrar Department, CDC House, 99-B, Block-B, S.M.C.H.S, Main Shahrah-e-Faisal,
Karachi, not later than 48 hours before the meeting duly signed and stamped and witnessed by the two persons with
their signatures, name, address and CNIC number given on the form.
In the case of individuals attested copies of CNIC or passport of the beneficial owners and the proxy shall be furnished
with the proxy Form.
In case of proxy by a corporate entity, Board of Directors resolution/power of attorney and attested copy of the CNIC or
passport of the proxy shall be submitted along with proxy Form.
AFIX
CORRECT
POSTAGE
AISHA STEEL MILLS LIMITED

Registrar:
Central Depository Comapnay of Pakistan,
Share Registrar Department,
CDC House, 99-B, Block-B, S.M.C.H.S,
Main Shahrah-e-Faisal, Karachi.
Fold: Here
Fold: Here
www.creativedge.com.pk
Arif Habib Center 23, M. T. Khan Road, Karachi-74000.

Tel: (92-21) 32470217 / Fax: (92-21) 32468316

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The Steel Industry

Vision and Mission Statement

Aisha Steel at a Glance

Auditors Review Report to the Members on

Corporate Calendar of Major Events

Messages for Stakeholders

Aisha Steel Mills Limited

To be a world class manufacturer of Cold

Annual Report 2015

To become an efficient producer of Cold

Overall Corporate Strategy

Annual Report 2015

Value creation for all stakeholders while maintaining a strong

Health, Safety & Environment

Our values are based on highest integrity, which

ASML stands committed to carry out its business in a

Annual Report 2015

Regulatory Compliance & Corporate Governance

Excellence & Efficiency

Annual Report 2015

2. Confidentiality and Accuracy of Information

4. Proper Recording of Funds, Assets, Receipts and

Aisha Steel Mills Limited

Sixteen exclusive Dealer

Aisha Steel Mills Limited

Annual Report 2015

Board & Management Committees

The audit committee remains responsible for

external auditors, audit fees and provision by external

Mr. Kashif A. Habib Chairman

To determine appropriate measures to safeguard

Aisha Steel Mills Limited

Board Human Resource &

Conduct periodic reviews of the good performance

Mr. Arif Habib Chairman

iii. Consider any changes to the companys retirement

appointment and remuneration package in accordance

Annual Report 2015

Management Executive Committee (Mancom)

Dr. Munir Ahmed-Chairman

Mr. Tahir Iqbal-Member

Mr. Nasir Feroze Bhatty-Member

Mr. Mohsin Lodhi-Member

Mr. Syed Ghulam Arif Hasni-Member

Mr. Khurram Abbas-Member

Ms. Hina Akhtar-Member

Mr. Waseem Saeed-Member

Mr. Khawar A Siddiqui-Member

Committee formed: December 2011

The Directors of Aisha Steel Mills Limited (the

Regulatory Issues Faced by Domestic CRC

of the domestic CRC manufacturers, there is significant

Your Company became the largest supplier of CRC in the market.

Annual Report 2015

Aisha Steel Mills Limited

Domestic production total

Note *: Pakistan Steel Mills data is based on market estimates.

Messages for Stakeholders