Security Papers : Transmission of Half Yearly Report for the Period Ended December 31, 2022

CONTENTS

Company information	02
Directors' Report	03
Auditors' report to the members on review of
interim financial information	04
Condensed interim statement of financial position	05
Condensed interim statement of profit or loss (unaudited)	06
Condensed interim statement of comprehensive income (unaudited)	07
Condensed interim statement of changes in equity (unaudited)	08
Condensed interim statement of cash flows (unaudited)	09
Notes to the condensed interim financial information (unaudited)	10
Attention shareholders	21

HALF YEARLY REPORT

	COMPANY INFORMATION
BOARD OF DIRECTORS
Chairman
Mr. Mohammad Aftab Manzoor	-	Non-executive
Directors
Mr. Muhammad Sualeh Ahmad Faruqui	-	Non-executive - Independent
Mr. Jamal Nasim	-	Non-executive
Dr. Abolghassem Jamshidi	-	Non-executive
Ms. Figen Caliskan	-	Non-executive
Mrs. Uzma Aijaz	-	Non-executive - Independent
Hafiz Mohammad Yousaf	-	Non-executive
Mr. Shafqaat Ahmed	-	Non-executive
Mr. Munir Ahmed	-	Non-executive - Independent
Chief Executive Officer
Mr. Imran Qureshi	-	Executive
BOARD AUDIT COMMITTEE
Mrs. Uzma Aijaz	-	Chairperson
Mr. Jamal Nasim	-	Member
Dr. Abolghassem Jamshidi	-	Member
Hafiz Mohammad Yousaf	-	Member
Mr. Shafqaat Ahmed	-	Member
Mr. Rizwan Ul Haq Khan	-	Secretary
BOARD HUMAN RESOURCE AND REMUNERATION COMMITTEE
Mrs. Uzma Aijaz	-	Chairperson
Mr. Mohammad Aftab Manzoor	-	Member
Mr. Jamal Nasim	-	Member
Mr. Munir Ahmed	-	Member
Mr. Rizwan Ul Haq Khan	-	Secretary
CHIEF FINANCIAL OFFICER	-	Mr. Babar Aijaz
COMPANY SECRETARY	-	Mr. Rizwan Ul Haq Khan
BANKERS
Bank Al Habib Limited
National Bank of Pakistan
Meezan Bank Limited
Habib Metropolitan Bank Limited
Bank Alfalah Limited
Khushhali Microfinance Bank Limited
MIB Bank Limited
AUDITORS	TAX CONSULTANTS
KPMG Taseer Hadi & Co.	A. F. Ferguson & Co.
Chartered Accountants	Chartered Accountants
LEGAL ADVISORS
Mohsin Tayebaly & Co.
Advocates & Legal Consultants
REGISTERED OFFICE	SHARE REGISTRARS
Jinnah Avenue, Malir Halt,	FAMCO Associates (Pvt.) Limited
Karachi - 75100	8-F, Near Hotel Faran, Nursery,
Tel	: ([phone]	Block-6, P.E.C.H.S, Shahra-e-Faisal,
Fax	: ([phone]	Karachi.
E-mail :[e-mail]	Tel: [phone]
		Fax: [phone]
		E-mail: [e-mail]
FACTORY	WEB SITE
Jinnah Avenue, Malir Halt, Karachi - 75100	http://www.security-papers.com
Tel	: ([phone]
Fax	: ([phone]
HALF YEARLY REPORT		02

DIRECTORS' REPORT

The Directors are pleased to present the un-audited financial information for the six months period ended December 31, 2022.

BUSINESS AND PERFORMANCE REVIEW

The Company produced 2159 tons of finished paper during the period under review as against 2198 tons compare to same period last year. Net sales were reported at Rs 2,532 million during the six months period under review as against Rs 2,603 million compare to same period last year. The Company achieved sales volume of 2151 tons as against 2157 tons during the corresponding period of preceding year.

Gross profit was reported at Rs 536 million as against Rs 906 million in the corresponding period of preceding year showing a decrease of Rs 370 million primarily owing to rising input costs. The profit before and after taxation during the period under review stood at Rs 564 million and Rs 336 million as against Rs 774 million and Rs 564 million respectively during the corresponding period of preceding year. It includes other income of Rs 317 million earned during the period under review as against Rs 146 million in the corresponding period of preceding year.

FUTURE PROSPECTS

Due to international and domestic dynamics, the Pakistani economy is facing significant challenges. The country economy remains unstable because of political uncertainty, devastating floods, Rupee devaluation, declining foreign exchange reserves and higher inflation. Given the low reserves position, the government is expected to take difficult but necessary measures and reforms required by the International Monetary Fund (IMF) including increase of utility prices and additional taxes to bridge fiscal deficits. As a result, the input cost, both raw materials and utilities, are on a rising trend.

In pursuance of diversification strategy, the Company has already delivered substantial quantities of ballot paper and has entered into a new contract for supply of additional quantities of ballot paper to Election Commission of Pakistan.

Your Company remains cognizant of the present business challenges and is continually assessing its strategy to meet the customers' demand while improving productivity through innovation, efficiency and effective cost containment initiatives.

ACKNOWLEDGEMENT

The directors of your Company take this opportunity to express their gratitude to all the stakeholders for their encouragement and support.

On behalf of the Board of Directors

IMRAN QURESHI	JAMAL NASIM
Chief Executive Officer	Director
Karachi
Dated: January 31, 2023
HALF YEARLY REPORT	03

HALF YEARLY REPORT

04