MS AR 2018 (1)

ANALYSIS OF PROSPECTS OF THE
ENTITY INCLUDING TARGETS FOR
FINANCIAL AND NON-FINANCIAL
MEASURES
Prospects Of The Entity
Efficient use of available resources, modernization of
production facilities through technology advancement
and innovation, expansion of capacities, development
of innovative products, exploration of alternative energy
resources, overcome energy constraints, reduction in costs
of production and diversification, provide sufficient support
to the management’s projection of enhanced profitability and
return to the members.
Targets For Financial Measures
Various factors and variables were considered and
estimated in projecting targets for financial year June 30,
2018. The results of some of these factors can be monitored
while for others they can only be improved to some extent.
Absolute commitment, continuous evaluation and steady
implementation have resulted in achievement of set goals
and objectives. This is evident from the fact that despite of
insufficient electricity load from the grid station, enhanced
production levels were achieved and operating targets were
met by way of efficient utilization of existing capacities and
commissioning of new gas engines, which enabled the
Company to increase its turnover despite adverse market
conditions.
Targets For Non-Financial Measures
The Company has identified the following areas as key nonfinancial
performance measures:
• Maintenance of product quality
• Relationship with customers
• Brand establishment and preference
• Raw material quality
• Employee satisfaction
• Responsibilities towards the society
Responsibility for implementation has been delegated to the
management, with continuous monitoring and control by the
Board.
Explanation As To Why The Results From
Performance Measures Have Changed Over The
Period Or How The Indicators Have Changed
Results of performance measures were in line with the
targets and there were no material changes.
CRITICAL PERFORMANCE
INDICATORS
Following are some of the critical performance indicators
against stated objectives of the Company.
S.
No.
1
Objectives
Modernization of production
facilities
CPIs
Funds allocation
2 Improved capacity utilization Number of hours run factor
3 Quality Customer complaints,
4 Cost efficiencies
Gross profit margin & Net profit
margin
5 Shareholder value EPS, ROE & Asset turnover
6 Leadership position in market Market share
7 Sustainability
8
Explore alternative energy
resources and overcoming
energy constraints
Current ratio, Gearing and
Interest cover
Enhancement of grid station
load, investments in alternate
energy resources.
Management believes that current critical performance
measures continue to be relevant in future as well.
ENTITY’S SIGNIFICANT
RELATIONSHIPS
The Company has very prominent and good relationships
with all stakeholders. We maintain collaborative relations
with our stakeholders through a good harmony, effective
communication and customer focused approach
because without doing this, we may affect our Company’s
performance and values of our entity. We follow the best
policy to maintain the relationship with our stakeholders
which includes satisfaction of customers by providing quality
products and timely payments to all creditors.
CAPITAL MARKET & MARKET
CAPITALIZATION
As at June 30, 2018, Pakistan Stock Exchange Limited
(“PSX”) had a market capitalization of Rs. 8,665.045 billion.
The market capitalization of the Company’s share stood at
Rs. 17,120.946 million as at June 30, 2018. The share traded
at an average of Rs. 65 per share. Market price experienced
fluctuations between the highest of Rs. 79.82 per share to
the lowest of Rs. 43.81 per share since July 01, 2017, mainly
due to market psychology, speculative investors and material
events occurring during the year. Trading in equity during the
year amounted to 132.607 million shares.
Annual Report 2018
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