Archroma Pakistan : Annual Report 2022

CONTENTS

ORGANIZATION'S OVERVIEW

Company Information	02
Heritage	03
Vision & Mission	04
Global Presence	05
Presence in Pakistan	06
Organogram	07
Product Portfolio	08
Code of Conduct	10
Board of Directors	11
Management Committee	12
Directors' Profile	13
Chairman's Review	15
CEO's Review	16
Business Model	17
Directors' Report	18
Directors' Report in Urdu	33
Awards & Accreditations	48
STRATEGIES AND RESOURCE ALLOCATION
Strategic Objectives	52
Resource Allocation	53
Factors Eecting the External Environment	54
Competitive Landscape and Market Positioning	55
RISK MANAGEMENT
Risk Management Framework & Methodology	57
Risks, Mitigation Plans & Opportunities	57
Risk Management Process	60
SWOT Analysis	62
CORPORATE SOCIAL RESPONSIBILITY
Sustainability Report	64
Sustainable Development Goals	72

STAKEHOLDERS RELATIONSHIP AND ENGAGEMENT	81
FUTURE OUTLOOK	86
GOVERNANCE
Corporate Governance	89
Report of the Board Audit Committee	103
Review Report to the Members on Statement of Compliance	105
Statement of Compliance	106
PERFORMANCE AND POSITION
Horizontal Analysis - Statement of Financial Position	110
Horizontal Analysis - Statement of Profit or Loss	111
Vertical Analysis - Statement of Financial Position	112
Vertical Analysis - Statement of Profit or Loss	113
Performance Indicators	114
Six Years at a Glance	117
FINANCIAL STATEMENTS
Independent Auditors' Report to the Members
on Financial Statements	119
Statement of Financial Position	125
Statement of Profit or Loss and other Comprehensive Income	126
Statement of Changes in Equity	127
Statement of Cash Flows	128
Notes to and Forming Part of the Financial Statements	129
STAKEHOLDERS INFORMATION
Pattern of Shareholding	177
Notice of Meeting	181
BCR Criteria	187
Proxy Form

ORGANIZATION'S OVERVIEW

COMPANY INFORMATION

Chairman	M Veqar Arif
Board of Directors	Mujtaba Rahim	-	Chief Executive Oicer
	Marcos Furrer		(Alternate: Irfan Chawala)
	Michel Zumstein		(Alternate: Naveed Kamil)
	Shahid Ghaar
	Thomas Bucher
	Yasmin Peermohammad
Audit Committee	Shahid Ghaar	- Chairman
	Michel Zumstein		(Alternate: Naveed Kamil)
	M Veqar Arif
	Irfan Lakhani	-	Secretary
Human Resources and	Yasmin Peermohammad	- Chairperson
Remuneration Committee	Michel Zumstein	-	(Alternate: Naveed Kamil)
	Mujtaba Rahim
	Irfan Lakhani	-	Secretary
Management Committee	Mujtaba Rahim		Naveed Kamil
	Irfan Chawala		Qazi Naeemuddin
	Muhammad Altaf
Chief Financial Oicer	Irfan Chawala
Company Secretary	Irfan Lakhani
Bankers	Bank Al Habib Limited
	Habib Bank Limited
	Habib Metropolitan Bank Limited
	MCB Bank Limited
	Meezan Bank Limited
	National Bank of Pakistan
	Standard Chartered Bank (Pakistan) Limited
Auditors	KPMG Taseer Hadi & Co. Chartered Accountants
Legal Advisor	Fazleghani Advocates
Share Registrar	FAMCO Associates (Pvt) Limited
	8-F, Next to Hotel Faran, Nursery
	Block-6, P.E.C.H.S.,
	Shahra-e-Faisal, Karachi
Registered Oice	1-A/1, Sector 20,
	Korangi Industrial Area, Korangi, Karachi
Factories	Petaro Road, Jamshoro
	LX-10,LX-11 Landhi Industrial Area Karachi
Sales & Marketing Oices	Katar Bund Road, O. Multan Road,
	Thokar Niaz Baig, Lahore
	P-277, Kashmir Road, Amin Town, Faisalabad.
Website	www.archroma.com.pk
E-mail	[e-mail]

ANNUAL 20	02
REPORT 22

HERITAGE

Archroma Pakistan Limited represents Archroma in Pakistan. Archroma was formed in September 2013 from the Textile, Paper and Emulsion businesses of Clariant. Clariant itself was formed in 1995 as a spin o' from Sandoz, a chemical & pharmaceutical company. Through this direct lineage, Archroma have amassed knowledge and experience of chemistry and industry spanning more than 135 years. Archroma is represented in five continents through more than 35 group companies, employs around 2,800 people, headquartered in Pratteln, Switzerland.

Every new innovation we develop today at Archroma combines our rich tradition of materials excellence and expertise, our market insight, and our commitment to talent management, world class quality standards, high service level, and the specialty materials and chemicals sector.

In Pakistan, Sandoz (Pakistan) Limited was formed in 1963 which subsequently became Clariant Pakistan Limited and incorporated in 1996 and now Archroma Pakistan Limited is listed on Pakistan Stock Exchange. It has manufacturing facilities at Jamshoro and Karachi. Since its inception, Sandoz, Clariant and now Archroma is primarily engaged in the manufacture and sales of chemicals, dyestu's, coating, adhesive and sealants. Besides manufacturing, the Company also acts as indenting agents for the parent company and a'iliates.

In the year 2015, Archroma also acquired textile chemical business of German chemical giant BASF Pakistan Private Limited and in 2016 a merger of wholly owned subsidiary Archroma Textiles Chemical Pakistan Private Limited (formerly BASF Pakistan Private Limited) into Archroma Pakistan Limited took place with the approval of court.

1886	1995	1997
Foundation of Kern & Sandoz	Specialty chemicals to		Acquisition of Hoechst
	Clariant		Specialty Chemicals

2013		2015		2016		2022
Textile, paper and		Acquisition of BASF textile		Merger of Textiles Chemical	*Acquisition of Textile
emulsions businesses		chemicals business		Pakistan Private Limited		E'ects Business of
are acquired by SK Capital				(formerly BASF Pakistan		Huntsman globally.
Partners and become				Private Limited )
Archroma				into Archroma Pakistan

*Transaction is subject to review and approval by the regulatory authorities

ANNUAL 20	03
REPORT 22