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CONTENTS

Company Information 2

Vision and Mission Statement 3

Notice of Annual General Meeting 8

Directors Report 9

Statement of Compliance 12

Six Years Review 14

Pattern of Shareholding 15

Review Report to the Members 19

Auditors Report 23

Balance Sheet 24

Profit and Loss Account 26

Statement of Comprehensive Income 27

Cash Flow Statement 28

Statement of Changes in Equity 29

Notes to the Accounts 30

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COMPANY INFORMATION

Board of DirectorsS. M. Mohsin ChairmanMehdi Mohsin DirectorMujeeb Rashid Chief Executive Officer &

Managing DirectorMoaz MohiuddinSyed Faisal ImamUmme Kulsum Imam

Jamal Nasim NIT Nominee

Audit CommitteeS. M. Mohsin ChairmanSyed Faisal Imam MemberMoaz Mohiuddin Member

Company Secretary/CFOAtif Fayyaz

AuditorsA.F. Ferguson & CompanyChartered Accountants

Legal AdvisorsMinto & Mirza78-Mozang Road, LahorePhone: (042) 36315469-70Fax: (042) 36361531

BankersHabib Bank LimitedAskari Commercial Bank LimitedMCB Bank LimitedBarclays Bank plcNational Bank of Pakistan

Share RegistrarCorplink (Private) Limited,Wings Arcade, 1-K (Commercial)Model Town, LahorePhone : (042) 35839182, 35887262,Fax:(042) 35869037

Corporate Office39-A, D-1, Gulberg III LahorePhones: (042) 35872392-96, Fax: (042) 35872398E-Mail: [email protected]: www.mitchells.com.pk

Factory, Regional SalesOffice (Central) & FarmsRenala Khurd, District Okara, PakistanPhones: (044) 2635907-8, 2622908Fax: (044) 2621416E-Mail: [email protected],[email protected]

Regional Sales Office (North)Plot No. 110, Street No. 10, I - 9/2, Industrial Area,IslamabadPhones: 051-4443824-6Fax : (051) 4443827E-Mail: [email protected]

Regional Sales Office (South)Mehran VIP II, Ground Floor,Plot 18/3 Dr. Dawood Pota Road, KarachiPhones: (021) 35212112, 35212712 & 35219675Fax: (021) 35673588E-Mail: [email protected]

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VISION AND MISSION STATEMENT

1. To be a leader in the markets we serve by providing quality products to our consumerswhile learning from their feedback to set even higher standards.

2. To be a company that continuously enhances its superior technological skills toremain internationally competitive in this day and age of increasing challenges.

3. To be a company that attracts and retains competent people by creating a culturethat fosters innovation, promotes individual growth and rewards initiative andperformance.

4. To be a company which optimally combines its people, technology, managementsystems, and market opportunities to achieve profitable growth while providingfair returns to its shareholders.

5. To be a company that endeavours to set the highest standards in corporate ethics.

6. To be a company that fulfills its social responsibility.

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NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the 79th Annual GeneralMeeting of Mitchell's Fruit Farms Limited will be heldon January 30, 2012 on Monday at 11:00 a.m. at theRegistered Office of the Company at 39-A, D-1, GulbergIII, Lahore to transact the following business:

Ordinary Business1. To confirm the minutes of the last Annual General

Meeting held on Januray 31, 2011.

2. To receive, consider and adopt the Annual AuditedAccounts of the Company for the year endedSeptember 30, 2011 together with the Directors'and Auditors' reports thereon.

3. To approve payment of cash dividend @ 70% asrecommended by the Directors.

4. To appoint auditors for the year ending September30, 2012, and to fix their remuneration as suggestedby the audit committee to the Board of Directors.

The retiring auditors namely Messers A. F. Ferguson& Co., Chartered Accountants, being eligible, offerthemselves for re-appointment.

Other Business5. To transact any other business which may be placed

before the meeting with the permission of thechair.

By order of the Board

Lahore Atif Fayyaz January 08, 2012 Company Secretary

Notes

1. The share transfer book of the Company willremain closed from January 22, 2012, to January30, 2012, (both days inclusive) for entitlementof final cash dividend for the accounting periodended September 30, 2011. Transfers receivedin order (including deposit requests under CDS)at our Registrar's office Corplink (Private)Limited, Wings Arcade, 1-K (Commercial) Model

Town, Lahore upto 1 : 00 p.m. on January 22,2012, will be considered in time.

2. A member eligible to attend and vote at thismeeting may appoint another member ashis/her proxy to attend and vote instead of him/her. Proxies, in order to be effective, mustbe received by the Company at the RegisteredOffice not later than 48 hours before the timemeeting is scheduled for.

3. Shareholders are requested to immediatelynotify the change in their address, if any.

4. The Beneficial Owners of Central DepositoryCompany, entitled to attend and vote at thismeeting, must bring his/her NIC or Passport toprove his/her identity. In case of Proxy, anattested copy of his/her NIC or Passport mustbe enclosed. Representatives of corporatenumbers should bring the usual documentsrequired for such purpose.

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DIRECTORS REPORT

The directors are pleased to submit the audited financial statements of the company for the year endedSeptember 30, 2011.

Overall economic conditions in the country did not improve over the previous year. As a result managingthe manufacturing operations with frequent Electricity and Gas outages amidst low economic growth

together with high inflation remained an unending challenge. The costs of our main Raw & Packagingmaterials as well as Energy continued to rise necessitating selling price adjustments.

After discontinuing some of the non-performing products the company's net sales recorded a growth of almost 30 % rising from Rs. 1,377 million to Rs. 1,794 million. This rise was supported by groceries andconfectionery sales showing an upward trend of 49 % and 9%, respectively. A healthy growth was registeredin sales to the Modern Trade and our efforts to boost Exports were well rewarded with a 81% increasein value.

Continuous improvement drives helped to boost our manufacturing efficiencies. Adding to that theoptimization of costs and operating margins helped in increasing Operating Profit from Rs. 107 million to

Rs. 147 million. Improvements in the Supply Chain and sound management of Working Capital helped inlimiting increase in financial charges from Rs.37 million in the previous year, to Rs. 38 million during theyear under review. As a result of all the efforts After Tax Profit for the year was Rs 73 Million comparedto Rs 46 million in the corresponding period last year.

Corporate Social Responsibility

For the objective of fulfilling our Corporate Social Responsibility several initiatives were undertaken toconserve energy including avoidance of unnecessary lighting and devising production schedules to minimizeusage.

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The construction and installation of a moderneffluent treatment facility was successfullycompleted and is now operating satisfactorily tofulfill our commitment of caring for theenvironment around our factory.

In line with our never ending commitment toprovide our consumers with the benchmark qualityproducts in Taste as well as Nutrition new

equipment has been designed, imported andsuccessfully installed.

Our factory staff was given detailed exposure andtraining in several functional areas as well asOccupational Health and Safety from professionaltrainers.

During the year we continued to financially supportAKRA an institution that is playing an importantrole in Teacher Training Programs through its 22branches in the region.

The company contributed Rs 186 million to theNational Exchequer on account of variousgovernment levies including customs duty, specialexcise duty, sales tax and income tax.

Corporate & Financial ReportingFramework

In compliance with the code of corporategovernance, we give below statements oncorporate and financial reporting frame work;

The financial statements, prepared by themanagement of the company, present fairlyits state of affairs, the results of its operations,cash flows and changes in equity.

Proper books of account of the companyhave been maintained.

Appropriate accounting policies have beenconsistently applied in preparation of financialstatements and accounting estimates arebased on reasonable prudent judgment.

International Accounting Standards, asapplicable in Pakistan, have been followedin preparation of financial statements and inpreparation of financial statements and anydeparture there from has been adequatelydisclosed.

The system of internal control is sound indesign and has been effectively implementedand monitored. There are no significantdoubts upon the company's ability tocontinue as going concern.

There has no material departure from thebest practices of corporate governance, asdetailed in the listing regulations.

10

2000000

Net Sales

Net Sales Years

1800000

1600000

1400000

1200000

1000000

800000

600000

400000

200000

0

Year

2006 2007 2008 2009 2010 2011

4.1%1.94%2%0.47%

4%

10%

13%

67%

Distribution of Revenue

Raw Material Consumed

Manufacturingoverheads

DistributionandM arketingexperses

AdministrativeExpenses

OthersFinancecost

Taxation

Profit after tax

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A statement regarding key financial data forthe last six years is annexed to this report.

During the last business year four meetings of the Board of Directors were held. Attendanceby each Director was as follows:-

Name of Director AttendanceS.M.Mohsin 4Mujeeb Rashid 4

Moaz Mohiuddin 4 Jamal Nasim 3Mehdi Mohsin 3Moaz Mohiuddin 3Syed Faisal Imam 0Umme Kulsum Imam 0

Leave of absence was granted to directors whocould not attend the board meetings.

Corporate Governance

The statement of compliance with the bestpractices of Code of Corporate Governance isannexed.

Pattern of Shareholding andInformation Under Clause XIX (I)and (J) of the Code of CorporateGovernance

The information under this head as on

September 30, 2011 is annexed

Related Parties

The transactions between the related partieswere made at arm's length prices, determinedin accordance with the comparable uncontrolledprices method. The company has fully compliedwith the best practices on Transfer Pricing ascontained the Listing Regulations of StockExchange in Pakistan.

Earnings Per Share

Basic and diluted earning per share for the yearunder report is Rs. 14.57 as compared to thelast year figure of Rs. 9.22

Auditors

M/s A.F. Ferguson & Company, CharteredAccountants, Lahore, retire, and being eligiblehave offered themselves for re-appointment.

The Audit Committee has also recommendedtheir re-appointment.

Acknowledgements

The board of directors would like to expresstheir gratitude to all employees for their strongcontribution in successfully overcoming adversecircumstances faced by the company during theyear.

For and on behalf of the Board of Directors

Mujeeb RashidLahore Managing Direcotor &

January 05, 2012 Chief Executive Officer

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Earnings Per Share

Rupees per Share

2006 2007 2008 2009 2010 2011

0.00-0.14

5.09

1.652.79

9.22

14.57

R u p e e s p e r S h a r e

16.00

14.0012.00

10.00

8.00

6.00

4.00

2.00

0.00

-2.00

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STATEMENT OF COMPLIANCEwith the Code of Corporate Governance

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The statement is being presented to comply with the Code of Corporate Governance contained in listingregulations of Karachi and Lahore Stock Exchanges for the purpose of establishing a framework of goodgovernance, whereby a listed company is managed in compliance with the best practices of corporategovernance.

The company has applied the principles contained in the Code in the following manner:

1. The Board of Directors of the Company includes Five non-executive and two executive directors.

2. The directors have confirmed that none of them is serving as a director in more than tenlisted companies, including this company.

3. All the resident directors of the Company are registered as taxpayers and none of them hasdefaulted in the payment of any loan to a banking company, a DFI or an NBFI or, being a memberof a stock exchange, has been declared as a defaulter by that stock exchange.

4. The Company has prepared a Statement of Ethics and Business Practices which has been signedby all the directors and employees of the Company.

5. The company has made appropriate arrangements to carry out orientation and training programthrough Pakistan Institute of Corporate Governance to one of the directors to acquaint him withhis duties and responsibilities and enable him to manage the affairs of listed company on behalf of shareholders.

6. The Board has developed a vision/mission statement, overall corporate strategy and significantpolicies of the Company. A complete record of particulars of significant policies along with thedates on which they were approved or amended has been maintained.

7. All the powers of the Board have been duly exercised and decisions on material transactions,including appointment and determination of remuneration and terms and conditions of employmentof the CEO and other executive directors, have been taken by the Board.

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8. The meetings of the Board were presided overby the Chairman and, in his absence, by adirector elected by the Board for this purposeand the Board met at least once in everyquarter. Written notices of the Board meeting,along with agenda and working papers werecirculated at least seven days before themeeting. The minutes of the meetings wereappropriately recorded and circulated.

9. The Board has approved appointment of Chief

Executive Officer & Managing Directorincluding his remuneration and terms andconditions of employment, as determined bythe Board of Directors.

10. The Directors' report for this year has beenprepared in compliance with the requirementsof the Code and fully describes the salientmatters required to be disclosed.

11. The financial statements of the Company wereduly endorsed by Chief Executive Officer andChief Financial Officer prior to approval by the

Board of Directors.

12. The Directors, Chief Executive Officer andexecutives do not hold any interest in theshares of the Company other than thatdisclosed in the pattern of shareholding.

13. The Company has complied with all thecorporate and financial reporting requirementsof the Code.

14. The Board has formed an audit committee. The committee consists of three members

and all the members are non-executivedirectors.

15. The meetings of the audit committee wereheld at least once every quarter prior toapproval of interim and final results of theCompany as required by the code. The termsof reference of the committee have beenformed and advised to the committee forcompliance.

16. The related parties' transactions have beenplaced before the Audit Committee andapproved by the Board of Directors to complywith the requirements of listing regulationsof Karachi and Lahore stock exchanges. All thetransactions with the related parties are madeon an arm's length basis.

17. The Board has set-up an effective internalaudit function, members of which suitablyqualified and experienced for the purpose and

are conversant with the policies andprocedures of the Company and they areinvolved in the internal audit function on a fulltime basis.

18. The statutory auditors of the Company haveconfirmed that they have been given asatisfactory rating under the Quality ControlReview program of the Institute of CharteredAccountants of Pakistan, that they or any of the partners of the firm, their spouses andminor children do not hold shares of theCompany and that the firm and all its partners

are in compliance with InternationalFederation of Accountants (IFAC) guidelineson code of ethics as adopted by the Instituteof Chartered Accountants of Pakistan.

19. The statutory auditors or the personsassociated with them have not been appointedto provide other services except inaccordance with the listing regulations andthe auditors have confirmed that they haveobserved IFAC guidelines in this regard.

20 We confirm that all other material principles

contained in the Code have been substantiallycomplied with.

For and on behalf of the Board

Mujeeb Rashid

Lahore Chief Executive Officer & Jan uary 05, 2012 Managing Director

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SIX YEARS REVIEW

2006 2007 2008 2009 2010 2011

Net sales 751,703 866,619 1,038,637 1,255,064 1,376,861 1,794,248

Gross Profit 104,653 160,353 189,814 234,997 303,348 394,117

Gross Profit to Sales - % 13.92 18.50 18.28 18.72 22.03 22.00

Profit before tax (3,480) 39,766 13,113 18,534 69,208 108,146

Profit before tax to sales - % (0.46) 4.59 1.26 1.48 5.03 6.03

Profit after tax (708) 25,666 8,338 14,052 46,468 73,425

Earnings per share - Rupees (0.14) 5.09 1.65 2.79 9.22 14.57

Cash Dividend - % - 20.00 10.00 20.00 40.00 000

Stock Dividend - % - - - - - -

Capital Expenditure 26,107 61,910 86,253 36,263 13,993 52,781

Production:

Confectionary - in tons / cartons 4,053 4,408 4,944 5,003 4,703 395,638

Groceries - in dozens / cartons 883,893 960,848 1,276,307 1,381,357 1,375,096 1,271,104

(Rupees in thousands)

Gross Profit, Profit before and After Tax

Years

Gross profit

Profit before tax

Profit after tax

0 2006 2007 2008 2009 2010 2011

Years

450000

400000

350000

300000

250000

200000

150000

100000

50000

0

-50000

R u p e e s i n t h o u s a n d s

Capital Expenditure

CapitalExpenditure

Year

Y e a r s

2011

2010

2009

2008

2007

2006

0

0 20000 40000 60000 80000 100000

Rupees in thousnads

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Associated Companies, Undertakings and Related Parties (Name Wise): - -

NIT and ICP (Name Wise):1 NATIONAL INVESTMENT TRUST LIMITED. (CDC) 14,478 0.2873%2 NATIONAL BANK OF PAKISTAN TRUSTEE DEPTT. (CDC) 562,203 11.1548%

Directors, CEO and their Spouse and Minor Chidred (Name Wise):

1 SYED MOHAMMAD MOHSIN 1,092,600 21.6786%2 SYED MOHAMMAD MEHDI MOHSIN 650,590 12.9085%3 SYED FAISAL IMAM 80,208 1.5914%4 MST. UMME KULSUM IMAM 720 0.0143%5 MR. MOAZ MOHIUDDIN 500 0.0099%6 MR.JAMAL NASIM (NIT NOMINEE) -- --7 MR. MUJEEB RASHID (CDC) 500 0.0099%8 SYEDA MRS. SITWAT MOHSIN W/O SYED MOHAMMAD MOHSIN 1,084,410 21.5161%

Executives: 288 0.0057%

Public Sector Companies & Corporations: - -

Banks, Development Finance Institutions, Non Banking Finance 534,795 10.6110%Intitutions, Insurance Companies, Modarabas and Mutual Fund s:

Shareholders holding ten percent or more voting intrest in the listed company (Name Wise)

1 SYED MOHAMMAD MEHDI MOHSIN 650,590 24.5176%2 SYEDA SITWAT MOHSIN 1,084,410 21.5161%3 SYED MOHAMMAD MOHSIN 1,092,600 21.6786%4 NATIONAL BANK OF PAKISTAN TRUSTEE DEPTT. (CDC) 562,203 11.1548%

All trades in the shares of the listed company, carries out by its Directors, CEO, CFO, CompanySecretary and their spouses and minor children:

S.No NAME SALE PURCHASE

1 SYEDA SITWAT MOHSIN -- 222,163

Catagories of Shareholding required under Code of Coprorate Governance (CCG)AS ON SEPTEMBER 30, 2011

No. of Share HeldNameSr. No. Percentage

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Categories of Share Holders asrequired under C.C.G.AS ON SEPTEMBER 30, 2011

DIRECTORS, CEO THEIR SPOUSES & MINOR CHILDREN:

1 SYED MOHAMMAD MOHSIN 1,092,600 21.6786%2 SYED MOHAMMAD MEHDI MOHSIN 646,790 12.8331%

SYED MOHAMMAD MEHDI MOHSIN (CDC) 3,800 0.0754%3 SYED FAISAL IMAM 80,208 1.5914%4 MST. UMME KULSUM IMAM 720 0.0143%5 MR. MOAZ MOHIUDDIN 500 0.0099%6 MR.JAMAL NASIM (NIT NOMINEE) -- --7 MR. MUJEEB RASHID (CDC) 500 0.0099%8 SYEDA MRS. SITWAT MOHSIN W/O SYED MOHAMMAD MOHSIN 812,561 16.1222%

SYEDA SITWAT MOHSIN W/O SYED MOHAMMAD MOHSIN (CDC) 271,849 5.3938%2,909,528 57.7287%

ASSOCIATED COMPANIES: 0 0.0000%

NIT & ICP:1 NATIONAL INVESTMENT TRUST LIMITED. (CDC) 14,478 0.2873%2 NATIONAL BANK OF PAKISTAN TRUSTEE DEPTT. (CDC) 562,203 11.1548%

576,681 11.4421%

BANKS, DEVELOPMENT FINANCIAL INSTITUTIONS,NON BANKING FINANCIAL INSTITUTIONS:

1 NATIONAL BANK OF PAKISTAN. (CDC) 53,518 1.0619%2 NATIONAL BANK OF PAKISTAN. (CDC) 286,496 5.6844%3 ESCORTS INVESTMENT BANK LIMITED. (CDC) 200 0.0040%

340,214 6.7503%INSURANCE COMPANIES:1 IGI NSURANCE LIMITED (CDC) 187,353 3.7173%2 RELIANCE INSURANCE COMPANY LTD. (CDC) 800 0.0159%

188,153 3.7332%

MODARABAS & MUTUAL FUNDS:

1 GOLDEN ARROW SELECTED STOCKS FUND LTD. (CDC) 6,428 0.1275%

INVESTMENT COMPANIES: 0 0.0000%

HOLDINGNAMESR. NO. %AGE

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JOINT STOCK COMPANIES1 BURMA OIL MILLS LTD. (CDC) 500 0.0099%2 EDULJEE DINSHAW (PVT) LTD. (CDC) 11,088 0.2200%3 LAKHANI SECURITIES (PVT) LTD. (CDC) 6,000 0.1190%4 NH SECURITIES (PVT) LTD.(CDC) 500 0.0099%5 PEARL CAPITAL MANAGEMENT (PVT) LTD. (CDC) 25 0.0005%6 PERIN DINSHAW (PVT) LTD. (CDC) 11,520 0.2286%7 SARFARAZ MAHMOOD (PVT) LTD. (CDC) 50 0.0010%8 SEVEN STAR SECURITIES (PVT) LTD. (CDC) 40 0.0008%9 UHF CONSULTING (PVT) LTD. (CDC) 40 0.0008%

29,763 0.5905%

EXECUTIVES1 GHAZANFER ABBAS ZAIDI (2101) 288 0.0057%

SHARES HELD BY THE GENERAL PUBLIC: 988,945 19.6219%

5,040,000 100.0000%

SHAREHOLDERS HOLDING 10% OR MORE OF TOTAL CAPITAL:

1 SYED MOHAMMAD MEHDI MOHSIN 650,590 12.9085%2 SYEDA SITWAT MOHSIN 1,084,410 21.5161%3 SYED MOHAMMAD MOHSIN 1,092,600 21.6786%4 NATIONAL BANK OF PAKISTAN TRUSTEE DEPTT. (CDC) 562,203 11.1548%

3,389,803 67.2580%

During the financial year the trading in shares of the company by the Directors, CEO, CFO, CompanySecretary and their spouses and minor children is as follows:

S. NO. NAME Sale Purchase

1 SYEDA SITWAT MOHSIN - 2882 SYEDA SITWAT MOHSIN (CDC) - 221,875

HOLDINGNAMESR. NO. %AGE

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REVIEW REPORT TO THE MEMBERSon Statement of Compliance with Best Practices of Code of Corporate Governance

We have reviewed the Statement of Compliance withthe best practices contained in the Code of CorporateGovernance prepared by the Board of Directors of Mitchell's Fruit Farms Limited (Company) to complywith the Listing Regulation No. 35 of the Karachi, Lahoreand Islamabad Stock Exchanges, where the company is

listed. The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directorsof the company. Our responsibility is to review, to theextent where such compliance can be objectivelyverified, whether the Statement of Compliance reflectsthe status of the company's compliance with theprovisions of the Code of Corporate Governance andreport if it does not. A review is limited primarily toinquiries of the company personnel and review of variousdocuments prepared by the company to comply withthe Code.

As part of our audit of financial statements we arerequired to obtain an understanding of the accountingand internal control systems sufficient to plan the auditand develop an effective audit approach. We have notcarried out any special review of the internal controlsystem to enable us to express an opinion as to whetherthe Board's statement on internal control covers allcontrols and the effectiveness of such internal controls.

Further, Sub-Regulation (xiii a) of Listing Regulation 35notified by the Karachi, Lahore and Islamabad StockExchanges requires the company to place before theBoard of Directors for their consideration and approval

related party transactions distinguishing betweentransactions carried out on terms equivalent to thosethat prevail in arm's length transactions and transactionswhich are not executed at arm's length price, recordingproper justification for using such alternate pricingmechanism. Further, all such transactions are also

required to be separately placed before the AuditCommittee. We are only required and have ensuredcompliance of requirement to the extent of approval of related party transactions by the Board of Directors andplacement of such transactions before the AuditCommittee.

We have not carried out any procedures to determinewhether the related party transactions were undertakenat arm's length price or not.

Based on our review, nothing has come to our attentionwhich causes us to believe that the Statement of Compliance does not appropriately reflect the company's

compliance, in all material respects, with the bestpractices contained in the Code of Corporate Governanceas applicable to the company for the year endedSeptember 30, 2011.

A. F. Ferguson & Co.Chartered AccountantsName of Engagement Partner: Amer Raza Mir

Lahore, January 05, 2012.

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We have audited the annexed balance sheet of Mitchells Fruit Farms Limited as at September 30, 2011and th r lat d pro t and loss account, stat m nt of compr h nsiv incom , cash ow stat m nt andstat m nt of chang s in quity tog th r with th not s forming part th r of, for th y ar th n nd d andw stat that w hav o tain d all th informa on and xplana ons which, to th st of our knowl dgand li f, w r n c ssary for th purpos s of our audit.

It is the responsibility of the companys management to establish and maintain a system of internal control,and pr par and pr s nt th a ov said stat m nts in conformity with th approv d accoun ng standardsand th r quir m nts of th Compani s Ordinanc , 1984. Our r sponsi ility is to xpr ss an opinion onth s stat m nts as d on our audit.

W conduct d our audit in accordanc with th audi ng standards as applica l in Pakistan. Th s standardsr quir that w plan and p rform th audit to o tain r asona l assuranc a out wh th r th a ov saidstat m nts ar fr of any mat rial misstat m nt. An audit includ s xamining, on a t st asis, vid ncsuppor ng th amounts and disclosur s in th a ov said stat m nts. An audit also includ s ass ssingth accoun ng polici s and signi cant s mat s mad y manag m nt, as w ll as, valua ng th ov rallpr s nta on of th a ov said stat m nts. W li v that our audit provid s a r asona l asis for ouropinion and, a r du v ri ca on, w r port that:

a) in our opinion, prop r ooks of account hav n k pt y th company as r quir d y th Compani sOrdinance, 1984;

) in our opinion:

i) th alanc sh t and pro t and loss account tog th r with th not s th r on hav n drawnup in conformity with th Compani s Ordinanc , 1984, and ar in agr m nt with th ooks ofaccount and ar furth r in accordanc with accoun ng polici s consist ntly appli d;

ii) th xp nditur incurr d during th y ar was for th purpos of th companys usin ss; and

iii) th usin ss conduct d, inv stm nts mad and th xp nditur incurr d during th y ar w rin accordanc with th o j cts of th company;

c) in our opinion and to th st of our informa on and according to th xplana ons giv n to us, thalanc sh t, pro t and loss account, stat m nt of compr h nsiv incom , cash ow stat m nt andstat m nt of chang s in quity tog th r with th not s forming part th r of conform with approv daccoun ng standards as applica l in Pakistan, and giv th informa on r quir d y th Compani sOrdinanc , 1984, in th mann r so r quir d and r sp c v ly giv a tru and fair vi w of th stat ofth companys a airs as at S pt m r 30, 2011 and of th pro t, total compr h nsiv incom , itscash ows and chang s in quity for th y ar th n nd d; and

d) in our opinion zakat d duc l at sourc und r th Zakat and Ushr Ordinanc , 1980 (XVIII of 1980),was d duct d y th company and d posit d in th C ntral Zakat Fund sta lish d und r s c on 7of th ordinanc .

Lahor Dat d: January 05, 2012 A. F. Ferguson & Co.Name of Engagement Partner: Am r Raza Mir Chart r d Accountants

AUDITORS REPORT TO THE MEMBERS

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2011 2010Note Rupees Rup s

EQUITY AND LIABILITIES

CAPITAL AND RESERVES

Authoris d capital10,000,000 (2010: 10,000,000) ordinary shar s of Rs 10 ach 100,000,000 100,000,000

Issu d, su scri d and paid up capital 5 50,400,000 50,400,0005,040,000 (2010: 5,040,000) ordinary shar s of Rs 10 achR s rv s 6 9,635,878 9,635,878Unappropriat d pro t 299,459,093 246,193,884

359,494,971 306,229,762NON-CURRENT LIABILITIES

D f rr d lia ili s 7 79,710,060 75,819,871

CURRENT LIABILITIES

Short t rm running nanc s - s cur d 8 154,794,581 166,615,728Cr ditors, accru d and oth r lia ili s 9 167,503,197 103,254,409Accru d nanc cost on short t rm running nanc s 2,887,660 4,466,921

325,185,438 274,337,058CONTINGENCIES AND COMMITMENTS 10

764,390,469 656,386,691

Th ann x d not s 1 to 36 form an int gral part of th s nancial stat m nts.

BALANCE SHEETAS AT SePTeMbeR 30, 2011

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ASSETS

NON-CURRENT ASSETS

Prop rty, plant and quipm nt 11 323,428,823 304,256,661Intangi l Ass ts 12 1,606,712 1,060,580Long term loans and deposits - 751,753biological ass ts 13 7,133,000 6,875,933

332,168,535 312,944,927

CURRENT ASSETSStores, spares and loose tools 14 9,293,902 12,426,849Stock in trad 15 312,065,976 230,917,920Trad d ts 16 63,244,881 40,716,666Advanc s, d posits, pr paym nts and oth r r c iva l s 17 34,037,404 51,252,732Cash and ank alanc s 18 13,579,771 8,127,597

432,221,934 343,441,764

764,390,469 656,386,691


S. M. Mohsin Mujeeb RashidChairman Chi f ex cu v O c r & Managing Dir ctor

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PROFIT AND LOSS ACCOUNTFOR THe YeAR eNDeD SePTeMbeR 30, 2011


Sales 19 1,794,248,317 1,376,861,492Cost of sales 20 (1,400,131,599) 1,073,513,561

Gross pro t 394,116,718 303,347,931

Administra on xp ns s 21 (66,738,991) (60,990,983)

Distri u on and mark ng xp ns s 22 (183,404,182) (135,992,953)

Oth r op ra ng xp ns s 23 (8,373,794) (7,056,707)

Oth r op ra ng incom 24 10,906,983 7,513,001

Pro t from opera ons 146,506,734 106,820,289

Financ cost 25 (38,360,468) (37,612,526)

Pro t before tax 108,146,266 69,207,763

Taxa on 26 (34,721,057) (22,739,889)

Pro t for the year 73,425,209 46,467,874

earnings p r shar - basic and dilut d 33 14.57 9.22



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STATEMENT OF COMPREHENSIVE INCOMEFOR THe YeAR eNDeD SePTeMbeR 30, 2011

2011 2010

Rupees Rup s

Pro t for th p riod 73,425,209 46,467,874

Other comprehensive income for the year - -

Total comprehensive income for the year 73,425,209 46,467,874



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STATEMENT OF CHANGES IN EQUITY FOR THe YeAR eNDeD SePTeMbeR 30, 2011

Share Share General Accumulatedcapital premium reserve pro t Total

balanc as at S pt m r 30, 2009 50,400,000 9,335,878 300,000 209,806,010 269,841,888

Final dividend for the year endedSeptember 30, 2009Rs. 2 p r shar - - - (10,080,000) (10,080,000)

Pro t for th y ar nd d S pt m r 30, 2010 - - - 46,467,874 46,467,874

balanc as at S pt m r 30, 2010 50,400,000 9,335,878 300,000 246,193,884 306,229,762

Final dividend for the year endedSeptember 30, 2010Rs. 4 p r shar - - - (20,160,000) (20,160,000)

Pro t for th y ar nd d S pt m r 30, 2011 - - - 73,425,209 73,425,209

Balance as at September 30, 2011 50,400,000 9,335,878 300,000 299,459,093 359,494,971



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NOTES TO THE FINANCIAL STATEMENTS FOR THe YeAR eNDeD SePTeMbeR 30, 2011

1. Legal status and nature of business

Th Company is incorporat d in Pakistan and is list d on Karachi, Lahor and Islama ad Stock exchang s.It is principally ngag d in th manufactur and sal of various farm and conf c on ry products.

2. Basis of prepara on

2.1 Th s nancial stat m nts hav n pr par d in accordanc with approv d accoun ngstandards as applica l in Pakistan. Approv d accoun ng standards compris of suchInt rna onal Financial R por ng Standards (IFRS) issu d y th Int rna onal Accoun ngStandards board and Islamic Financial Accoun ng Standards (IFAS) issu d y Ins tut ofChart r d Accountants of Pakistan as ar no d und r th Compani s Ordinanc , 1984,provisions of and dir c v s issu d und r th Compani s Ordinanc , 1984. Wh r v r th

r quir m nts of th Compani s Ordinanc , 1984 or dir c v s issu d y S curi s and exchangCommission of Pakistan (SeCP) di r with th r quir m nts of IFRS or IFAS, th r quir m ntsof th Compani s Ordinanc , 1984 or th r quir m nts of th said dir c v s pr vail.

2.2 Standards, interpreta ons and amendments to published approved accoun ng standards.

2.2.1 Amendments and interpreta ons to published standards e ec ve in current year

Th following am ndm nts to xis ng standards hav n pu lish d that ar applica lto th Companys nancial stat m nts cov ring annual p riods, ginning on or a rth following dat s:

- IAS 7, Stat m nt of cash ows. Th guidanc has n am nd d to clarify that onlyxp nditur that r sults in a r cognis d ass t in th stat m nt of nancial posi oncan classi d as a cash ow from inv s ng ac vi s. This am ndm nt r sults inan improv m nt in th alignm nt of th classi ca on of cash ows from inv s ngac vi s in th stat m nt of cash ows and th pr s nta on of r cognis d ass ts inth stat m nt of nancial posi on. This am ndm nt do s not hav a mat rial impacton th Companys nancial stat m nts.

- IAS 17, L as s. Th am ndm nt provid s that wh n a l as includ s oth land anduildings, classi ca on as a nanc or op ra ng l as is p rform d s parat ly inaccordanc with IAS 17s g n ral principl s. Prior to th am ndm nt, IAS 17 g n rallyr quir d a l as of land with an ind nit us ful lif to classi d as an op ra ngl as , unl ss tl pass d at th nd of th l as t rm. How v r, th IASb hasconclud d that this is inconsist nt with th g n ral principl s of l as classi ca on,so th r l vant guidanc has n d l t d. A l as n wly classi d as a nanc l asshould r cognis d r trosp c v ly. This am ndm nt do s not hav a mat rialimpact on th Companys nancial stat m nts.

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2.2.2 Standards, am ndm nts and int rpr ta ons to xis ng standards c v in curr nt y ar utnot applica l /r l vant to th Companys op ra ons

Standards and interpreta ons E ec ve date (accoun ng periods beginning on or a er)

IAS 1 (Am ndm nt), Pr s nta on of Financial Stat m nts July 1, 2010 IAS 27 (Am ndm nt), Consolidat d and S parat Financial Stat m nts July1, 2010 IAS 32 (Am ndm nt), Financial instrum nts: Pr s nta on on

classi ca on of rights issu s January 1, 2010 IFRS 3 (Am ndm nt), busin ss Com ina ons July 1, 2010 IFRS 5 (Am ndm nt), Non-curr nt ass ts h ld for sal and discon nu d op ra ons July 1, 2010 IFRS 1 (Am ndm nt), First m adop on of Int rna onal Financial R por ng Standards July 1, 2010

IFRIC 15 (Am ndm nt), Arrang m nts for construc on of r al stat s January 1, 2010 IFRIC 19, ex nguishing Financial Lia ili s with equity Instrum nts July 1, 2010

2.2.3 Standards, am ndm nts and int rpr ta on to xis ng standards that ar not y t c v

Standards and interpreta ons E ec ve date (accoun ng periods beginning on or a er)

IAS 1 (Am ndm nt), Pr s nta on of Financial Stat m nts January 1, 2011 IAS 24 (R vis d), R lat d Party Disclosur s January 1, 2011 IAS 34 (Am ndm nt), Int rim Financial R por ng Classi d

as H ld-For-Sal January 1, 2011 IFRS 1 (Am ndm nt), First- m Adop on of Int rna onal

Financial R por ng Standards January 1, 2011IFRS 7 (Am ndm nt), Financial Instrum nts: Disclosur s January 1, 2011

IFRS 9, Financial instrum nts January 1, 2013 IFRS 10, Consolidat d nancial stat m nts January 1, 2013 IFRS 11, Joint arrang m nts January 1, 2013 IFRS 12, Disclosur of int r sts in oth r n s January 1, 2013 IFRS 13, Fair valu m asur m nt January 1, 2013 IFRIC 13 (Am ndm nt), Custom r Loyalty Programs January 1, 2011

IFRIC 14, (Am ndm nt), Pr paym nt of a Minimum FundingR quir m nt January 1, 2011

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3. Basis of measurement

3.1 Th s nancial stat m nts hav n pr par d und r th historical cost conv n on xc pt forr valua on of c rtain nancial instrum nts, iological ass ts and agricultural produc at fairvalu s as r f rr d to in not s 4.5. and r cogni on of c rtain mploy r r m nt n ts atpr s nt valu as r f rr d to in not 4.2

Th companys signi cant accoun ng polici s ar stat d in not 4. Not all of th s signi cantpolici s r quir th manag m nt to mak di cult, su j c v or compl x judgm ntsor s mat s. Th following is int nd d to provid an und rstanding of th polici s thmanag m nt consid rs cri cal caus of th ir compl xity, judgm nt of s ma on involv din th ir applica on and th ir impact on th s nancial stat m nts. es mat s and judgm ntsar con nually valuat d and ar as d on historical xp ri nc , including xp cta ons of

futur v nts that ar li v d to r asona l und r th circumstanc s. Th s judgm ntsinvolv assump ons or s mat s in r sp ct of futur v nts and th actual r sults may di rfrom th s s mat s. Th ar as involving a high r d gr of judgm nts or compl xity or ar aswh r assump ons and s mat s ar signi cant to th nancial stat m nts ar as follows:

a) Re rement bene ts

Th Company us s th valua on p rform d y an ind p nd nt actuary as th pr s nt valu of itsr r m nt n t o liga ons. Th valua on is as d on assump ons as m n on d in not 4.2

b) Provision for taxa on

Th Company tak s into account th curr nt incom tax law and th d cisions tak n yapp llat authori s. Instanc s wh r th Companys vi w di rs from th vi w tak n yth incom tax d partm nt at th ass ssm nt stag and wh r th Company consid rs thatits vi w on it ms of mat rial natur is in accordanc with law, th amounts ar shown ascon ng nt lia ili s.

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

Th Company r vi ws th us ful liv s of prop rty, plant and quipm nt on r gular asis. Anychang in s mat s in futur y ars might a ct th carrying amounts of th r sp c v it msof prop rty, plant and quipm nt with th corr sponding ct on th d pr cia on chargand impairm nt.

d) Biological assets

Th Company as s its valua on upon yi ld ass ssm nt p rform d y an ind p nd ntagricultural xp rt and comput s fair valu l ss s mat d point of sal s cost to arriv at itsvalua on. Th fair valu l ss s mat d point of sal s cost is as d on factors m n on d innot 4.5.

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4. Signi cant accoun ng pol icies

Th signi cant accoun ng polici s adopt d in th pr para on of th s nancial stat m nts ar s tout low. Th s polici s hav n consist ntly appli d to all y ars pr s nt d, unl ss oth rwisstat d.

4.1 Taxa on

Current

Provision of curr nt tax is as d on th taxa l incom for th y ar d t rmin d in accordancwith th pr vailing law for taxa on of incom . Th charg for curr nt tax is calculat d usingpr vailing tax rat s or tax rat s xp ct d to apply to th pro t for th y ar if nact d. Thcharg for curr nt tax also includ s adjustm nts, wh r consid r d n c ssary, to provision for

tax mad in pr vious y ars arising from ass ssm nts fram d during th y ar for such y ars.

Deferred

Deferred tax is accounted for using the balance sheet liability method in respect of allt mporary di r nc s arising from di r nc s tw n th carrying amount of ass ts andlia ili s in th nancial stat m nts and th corr sponding tax as s us d in th computa onof th taxa l pro t.

D f rr d tax lia ili s ar g n rally r cogniz d for all taxa l t mporary di r nc s andd f rr d tax ass ts ar r cogniz d to th xt nt that it is pro a l that taxa l pro ts will availa l against which th d duc l t mporary di r nc s, unus d tax loss s and tax

cr dits can u liz d.

D f rr d tax is calculat d at th rat s that ar xp ct d to apply to th p riod wh n thdi r nc s r v rs as d on tax rat s that hav n nact d or su stan v ly nact d y thalanc sh t dat . D f rr d tax is charg d or cr dit d in th incom stat m nt, xc pt in thcas of it ms cr dit d or charg d to quity in which cas it is includ d in quity.

4.2 Employee re rement bene ts

Th main f atur s of th sch m s op rat d y th Company for its mploy s ar as follows:

(a) De ned bene t plans

Th Company op rat s an unfund d gratuity sch m for all mploy s according to th t rmsof mploym nt su j ct to a minimum qualifying p riod of s rvic . Annual provision is madon th asis of actuarial valua on to cov r o liga ons und r th sch m for all mploy sligi l to gratuity n ts irr sp c v of th qualifying p riod.

Th lat st actuarial valua on for gratuity sch m was carri d out as at S pt m r 30, 2011.Proj ct d Unit Cr dit M thod, using th following signi cant assump ons is us d for valua onof th sch m :

- Discount rat 12.5 p rc nt p r annum (2010: 12.5 p rc nt p r annum).- exp ct d rat of incr as in salary l v l 11.5 p rc nt p r annum (2010: 11.5 p rc nt p r

annum). - Av rag xp ct d r maining working lif m of mploy s 10 y ars.

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Th Companys policy with r gard to actuarial gains/loss s is as d on th minimum 10%corridor approach m n on d und r paragraph 92 of IAS - 19 (employ b n ts).

(b) Accumula ng compensated absences

Th Company provid s accumula ng comp nsat d a s nc s, wh n th mploy s r nd rs rvic that incr as th ir n tl m nt to futur comp nsat d a s nc s.

Provisions ar mad annually to cov r th o liga on for accumula ng comp nsat d a s nc sfor x cu v s as d on actuarial valua on and ar charg d to pro t.

Th lat st actuarial valua on was carri d out as at S pt m r 30, 2011. Proj ct d Unit Cr ditM thod, using th following signi cant assump ons is us d for valua on of accumula ngcomp nsat d a s nc s.

- Discount rat 12.5 p rc nt p r annum (2010: 12.5 p rc nt p r annum).- exp ct d rat of incr as in salary l v l 11.5 p rc nt p r annum (2010: 11.5 p rc nt p r

annum).- Av rag xp ct d r maining working lif m of mploy s 14 y ars.

Actuarial gains and loss s arising during th y ar ar r cognis d imm diat ly in accordancwith th provisions of IAS 19 employ n ts.

R r m nt n ts ar paya l to sta on compl on of pr scri d qualifying p riod ofs rvic und r th s sch m s.

4.3 Property, plant and equipment

4.3.1 Opera ng xed assets

Op ra ng x d ass ts xc pt fr hold land ar stat d at cost l ss accumulat dd pr cia on and any id n d impairm nt loss. Fr hold land is stat d at cost l ss anyid n d impairm nt loss. Cost in r la on to c rtain prop rty, plant and quipm ntsigni s historical cost and orrowing cost as r f rr d to in not 4.15.

D pr cia on on all op ra ng x d ass ts is charg d to pro t on th r ducing alancm thod so as to writ o th d pr cia l amount of an ass t ov r its s mat d us fullif at th annual rat s m n on d in not 11.1, a r taking into account th impact ofth ir r sidual valu s, if consid r d signi cant.

Th ass ts r sidual valu s and us ful liv s ar r vi w d, at ach nancial y ar nd,and adjust d if th impact on d pr cia on is signi cant. Th Companys s mat of thr sidual valu of its op ra ng x d ass ts as at S pt m r 30, 2011 has not r quir dany adjustm nt as its impact is consid r d insigni cant.

D pr cia on on addi ons to op ra ng x d ass ts is charg d from th month in whichan ass t is acquir d or capitalis d whil no d pr cia on is charg d for th month inwhich th ass t is dispos d of.

An ass ts carrying amount is wri n down imm diat ly to its r cov ra l amount if thass ts carrying amount is gr at r than its s mat d r cov ra l amount as m n on din not 4.6.

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Subsequent costs are included in the assets carrying amount or recognised as as parat ass t, as appropriat , only wh n it is pro a l that futur conomic n tsassociat d with th it ms will ow to th Company and th cost of th it m can m asur d r lia ly. All oth r r pair and maint nanc costs ar charg d to incom duringth p riod in which th y ar incurr d.

Th gain or loss on disposal or r r m nt of an ass t r pr s nt d y th di r nctw n th sal proc ds and th carrying amount of th ass t is r cognis d as an

incom or xp ns .

4.3.2 Capital work-in-progress

Capital work-in-progr ss is stat d at cost l ss any id n d impairm nt loss. Allxp nditur conn ct d with sp ci c ass ts incurr d during installa on and construc onp riod ar carri d und r capital work-in-progr ss. Th s ar transf rr d to op ra ngx d ass ts as and wh n th s ar availa l for us .

4.4 Intangible assets

Intangi l ass ts r pr s nt th cost of comput r so war acquir d and stat d at cost l ssaccumulat d amor sa on and any id n d impairm nt loss. Intangi l ass ts ar amor s dusing th r ducing alanc m thod at th rat of 20% so as to writ o th cost of an ass tov r its s mat d us ful lif .

Amor za on on addi ons is charg d from th month in which an ass t is acquir d or capitaliz dwhil no amor za on is charg d for th month in which th ass t is dispos d of. Amor za onis ing charg d as m n on d in not 12.

An ass ts carrying amount is wri n down imm diat ly to its r cov ra l amount if th ass tscarrying amount is gr at r than its s mat d r cov ra l amount as m n on d in not 4.6

4.5 Biological assets and agriculture produce

biological ass ts compris of liv stock and tr s. Th s ar m asur d at fair valu l sss mat d point-of-sal costs with any r sultant gain/loss ing r cognis d in th pro t andloss account. Fair valu of liv stock is d t rmin d on th asis of mark t pric s of liv stock ofsimilar ag , r d and g n c m rit. Fair valu of tr s is d t rmin d on th asis of mark tpric s of similar it ms in local ar as. Point-of-sal costs includ all costs that ar n c ssary tos ll th ass ts, xcluding costs n c ssary to g t th ass ts to th mark t.

Th Company h ld 127 animals (2010: 147) including cows, calv s, hors s and sh p ands mat s to n cially own 839 (2010: 848) tr s of various kinds including mango, jam olin ,kachnar, c rus , amla, spik nard, orh and sh sham tc as on S pt m r 30, 2011.

4.6 Impairment of non- nancial assets

Ass ts that hav an ind nit us ful lif , for xampl land, ar not su j ct to d pr cia on/amor sa on and ar t st d annually for impairm nt. Ass ts that ar su j ct to d pr cia on/amor sa on ar r vi w d for impairm nt wh n v r v nts or chang s in circumstanc s indicatthat th carrying amount may not r cov ra l . An impairm nt loss is r cognis d for thamount y which th ass ts carrying amount xc ds its r cov ra l amount. Th r cov ra lamount is th high r of an ass ts fair valu l ss costs to s ll and valu in us . For th purpos sof assessing impairm nt, ass ts ar group d at th low st l v ls for which th r ar s parat lyid n a l cash ows (cash-g n ra ng units). Non- nancial ass ts that su r d an impairm ntar r vi w d for possi l r v rsal of th impairm nt at ach r por ng dat .

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4.7 Leases

4.7.1 Opera ng leases

L as s wh r a signi cant por on of th risks and r wards of own rship ar r tain dy th l ssor ar classi d as op ra ng l as s. Paym nts mad und r op ra ng l as s(n t of any inc n v s r c iv d from th l ssor) ar charg d to pro t on a straight linasis ov r th l as t rm.

4.8 Stores, spares and loose tools

Usa l stor s, spar s and loos tools ar valu d principally at moving av rag cost, whil it msconsid r d o sol t ar carri d at nil valu . It ms in transit ar valu d at cost comprisinginvoic valu plus oth r charg s paid th r on.

4.9 Stock-in-trade

Stock of raw mat rials, xc pt for thos in transit, and nish d goods ar valu d principally atth low r of moving av rag cost and n t r aliza l valu .

Cost of raw mat rial signi s av rag dir ct mat rial cost.

Finished goods comprise cost of direct materials, labour and appropriate manufacturingov rh ads.

Materials in transit are stated at cost comprising invoice value plus other charges paid

th r on.

N t r alisa l valu signi s th s mat d s lling pric in th ordinary cours of usin ss l sscosts n c ssarily to incurr d in ord r to mak a sal .

4.10 Financial instruments

4.10.1 Financial assets

Th Company classi s its nancial ass ts in th following cat gori s: at fair valuthrough pro t or loss, loans and r c iva l s, availa l for sal and h ld to maturity.Th classi ca on d p nds on th purpos for which th nancial ass ts w r acquir d.Manag m nt d t rmin s th classi ca on of its nancial ass ts at th m of ini al

r cogni on.

a) Financial assets at fair value through pro t or loss

Financial ass ts at fair valu through pro t or loss ar nancial ass ts h ld for tradingand nancial ass ts d signat d upon ini al r cogni on as at fair valu through pro tor loss. A nancial ass t is classi d as h ld for trading if acquir d principally for thpurpos of s lling in th short t rm. Ass ts in this cat gory ar classi d as curr ntass ts.

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Th Company ass ss s at ach alanc sh t dat wh th r th r is o j c v vid nc thata nancial ass t or a group of nancial ass ts is impair d. If any such vid nc xists foravaila l -for-sal nancial ass ts, th cumula v loss is r mov d from quity and r cognis din th pro t and loss account. Impairm nt loss s r cognis d in th pro t and loss account onquity instrum nts ar not r v rs d through th pro t and loss account. Impairm nt t s ngof trad d ts and oth r r c iva l s is d scri d in not 4.11.

Financial ass ts ar d r cognis d wh n th rights to r c iv cash ows from th ass ts havxpir d or hav n transf rr d and th Company has transf rr d su stan ally all th risksand r wards of own rship.

4.10.2 Financial liabili es

All nancial lia ili s ar r cognis d at th m wh n th Company com s a party toth contractual provisions of th instrum nt.

A nancial lia ility is d r cognis d wh n th o liga on und r th lia ility is discharg dor canc ll d or xpir d. Wh r an xis ng nancial lia ility is r plac d y anoth r fromth sam l nd r on su stan ally di r nt t rms, or th t rms of an xis ng lia ility arsu stan ally modi d, such an xchang or modi ca on is tr at d as a d r cogni onof th original lia ility and th r cogni on of a n w lia ility, and th di r nc inr sp c v carrying amounts is r cognis d in th pro t and loss account.

4.10.3 O se ng of nancial assets and nancial liabili es

Financial ass ts and nancial lia ili s ar o s t and th n t amount is r port d in

th nancial stat m nts only wh n th r is a l gally nforc a l right to s t o thr cognizd amount and th Company int nds ith r to s l on a n t asis or to r alizth ass ts and to s l th lia ili s simultan ously.

4.11 Trade debts and other receivables

Trad d ts and oth r r c iva l s ar r cognis d ini ally at invoic valu , which approximat sfair valu , and su s qu ntly m asur d at amor s d cost using th c v int r st m thod,l ss provision for dou ul d ts. A provision for dou ul d ts is sta lish d wh n th r iso j c v vid nc that th Company will not a l to coll ct all th amount du according toth original t rms of th r c iva l . Signi cant nancial di cul s of th d tors, pro a ilitythat th d tor will nt r ankruptcy or nancial r organisa on, and d fault or d linqu ncy inpaym nts ar consid r d indicators that th trad d t is impair d. Th provision is r cognis d

in th pro t and loss account. Wh n a trad d t is uncoll c l , it is wri n o against thprovision. Su s qu nt r cov ri s of amounts pr viously wri n o ar cr dit d to th pro tand loss account.

4.12 Cash and cash equivalents

Cash and cash quival nts includ s cash in hand, d posits h ld at call with anks, oth r short-t rm highly liquid inv stm nts with original maturi s of thr months or l ss, and ankov rdra s. bank ov rdra s ar shown within orrowings in curr nt lia ili s as nanc s und rmarkup arrang m nt on th alanc sh t.

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Cash and cash quival nts ar carri d in th alanc sh t at cost. For th purpos of cashow stat m nt cash and cash quival nts compris cash in hand, d mand d posits, oth rshort t rm highly liquid inv stm nts that ar r adily conv r l to known amounts of cashand which ar su j ct to an insigni cant risk of chang in valu and nanc s und r mark-uparrang m nts. In th alanc sh t, nanc s und r mark-up arrang m nts ar includ d incurr nt lia ili s.

4.13 Share capital

Ordinary shar s ar classi d as quity and r cognis d at th ir fac valu . Incr m ntal costsdir ctly a ri uta l to th issu of n w shar s ar shown in quity as a d duc on, n t of tax.

4.14 Borrowings

borrowings ar r cognis d ini ally at fair valu , n t of transac on costs incurr d. borrowingsar su s qu ntly stat d at amor s d cost, any di r nc tw n th proc ds (n t oftransac on costs) and th r d mp on valu is r cognis d in th pro t and loss account ov rth p riod of th orrowings using th c v int r st m thod. Financ costs ar account dfor on an accrual asis and ar r port d und r accru d nanc costs to th xt nt of thamount r maining unpaid.

borrowings ar classi d as curr nt lia ili s unl ss th Company has an uncondi onal rightto d f r s l m nt of th lia ility for at l ast tw lv months a r th alanc sh t dat .

4.15 Borrowing costs

borrowing costs incurr d for th construc on of any qualifying ass t ar capitalis d during th

p riod of m that is r quir d to compl t and pr par th ass t for its int nd d us . Oth rorrowing costs ar xp ns d in th pro t and loss account in th p riod in which th y aris .

4.16 Trade and other payables

Trad and oth r paya l s ar r cognis d ini ally at fair valu and su s qu ntly m asur dat amor s d cost using th c v int r st m thod. exchang gains and loss s arising ontransla on in r sp ct of lia ili s in for ign curr ncy ar add d to th carrying amount of thr sp c v lia ili s.

4.17 Provisions

Provisions ar r cogniz d wh n th Company has a pr s nt l gal or construc v o liga onas a r sult of past v nts, it is pro a l that an ou low of r sourc s m odying conomicn ts will r quir d to s l th o liga on and a r lia l s mat of th amount can

mad . Provisions ar r vi w d at ach alanc sh t dat and adjust d to r ct th curr ntst s mat .

4.18 Deriva ve nancial instruments

D riva v s ar ini ally r cognis d at fair valu on th dat a d riva v contract is nt r d intoand ar su s qu ntly r m asur d at th ir fair valu . Th m thod of r cognizing th r sul nggain or loss d p nds on wh th r th d riva v is d signat d as a h dging instrum nt, and ifso, th natur of th it m ing h dg d. Th Company do s not d signat d riva v s as cashow h dg s.

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6. Reserves

Mov m nt in and composi on of r s rv s is as follows:

Capital Reserve - Shar pr mium 6.1 9,335,878 9,335,878

Revenue - G n ral r s rv 300,000 300,000

9,635,878 9,635,878

6.1 This r s rv can u lis d y th company only for th purpos s sp ci d in s c on 83(2) ofth Compani s Ordinanc , 1984.


7. Deferred liabili es

Th s ar compos d of:D f rr d taxa on 7.1 43,565,335 47,253,906R r m nt and oth r n ts 7.2 36,144,725 28,565,965

79,710,060 75,819,871

7.1 Deferred taxa on

Th lia ility for d f rr d taxa on compris s t mporary di r nc s r la ng to:

Acc l rat d tax d pr cia on & amor za on 59,162,432 58,375,206R r m nt n ts (11,715,041) (9,545,552)

Other provisions (3,882,056) (1,575,748)

43,565,335 47,253,906

7.2 Re rement and other bene ts

Sta gratuity 7.2.1 33,293,652 25,862,946

Accumula ng comp nsat d a s nc s 2,851,073 2,703,019

36,144,725 28,565,965

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2011 2010 Rupees Rup s

7.2.1 Sta gratuity

Pr s nt valu of d n d n t o liga on as at September 30, 2011 39,295,851 31,865,145

Unr cognis d actuarial loss (6,002,199) (6,002,199)

Liability as at September 30, 2011 33,293,652 25,862,946

Liability as at October 1, 2010 25,862,946 20,784,055Charg to pro t and loss account 12,564,891 8,256,471Contri u ons y th company (5,134,185) (3,177,580)

Liability as at September 30, 2011 33,293,652 25,862,946

Th mov m nt in th pr s nt valu of d n d n t o liga on is as follows:

Pr s nt valu of d n d n t o liga on as at Octo r 1 31,865,145 26,098,448

Service cost 8,300,180 4,854,202Interest cost 3,983,143 3,131,814b n ts paid (5,134,185) (3,177,580)

Actuarial loss 281,568 958,261Pr s nt valu of d n d n t o liga on

as at September 30 39,295,851 31,865,145

As at September 30 2011 2010 2009 2008 2007 ( Rupees in thousands )

Th pr s nt valu of d n d n t o liga on and th xp ri nc adjustm nt on o liga onis as follows:

Pr s nt valu of d n d n t o liga on 39,296 31,865 26,098 27,672 19,557exp ri nc adjustm nt on o liga on 963 958 (4,110) 4,182 4,360

8. Short term running nances - secured

Short t rm running nanc s, availa l from comm rcial anks und r mark-up arrang m nts amountto Rs 390 million (2010: Rs 390 million). Th rat s of mark-up rang from R . 0.3493 to R . 0.3674 p rRs 1,000 p r di m or part th r of on th alanc outstanding and is paya l quart rly.

Of th aggr gat facility of Rs 140 million (2010: Rs 140 million) for op ning l r of cr dits and Rs 32million (2010: Rs 42 million) for guarant s, th amount u lis d at S pt m r 30, 2011 was Rs 7.282 million(2010: Rs 91.549 million) and Rs 20.000 million (2010: Rs 17.200 million) r sp c v ly. Th guarant s ofRs. 20 million ar a su -facility of th running nanc facility o tain d i. ; Rs 390 million.

Th aggr gat short t rm facili s ar s cur d y a hypoth ca on of stor s and spar s, stock intrade, trade debts and a charg on th pr s nt and futur x d ass ts of th company.

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2011 2010 Note Rupees Rup s11. Property, plant and equipment

Op ra ng x d ass ts 11.1 308,925,644 302,924,568Capital work-in-progr ss 11.2 14,503,179 1,332,093

323,428,823 304,256,661

11.1 Property, plant and equipment

Land Buildings Plant and Vehicles Furniture and Electric Computer Total

Freehold On freehold On leasehold machinery Fi ngs Installa ons Hardware land land

(Rupees)Net carrying value basis Year ended September 30, 2011 Op ning n t ook valu (NbV) 15,547 29,911,899 1,126,289 245,530,630 18,210,191 748,207 5,733,982 1,647,823 302,924,568Addi ons (at cost) - 75,510 - 12,407,826 4,852,350 337,400 21,419,934 516,540 39,609,560Disposals (at NbV) - - - (1,291,688) (1,255,788) - - - (2,547,476)Ad justm nt s - - - (872,525 ) - - 872 ,525 (252 ,945) (252 ,945 )D pr cia on charg - (2,991,823) (112,629) (19,744,004) (2,204,421) (192,147) (5,240,557) (322,483) (30,808,064)

Closing n t ook valu (NbV) 15,547 26,995,586 1,013,660 236,030,239 19,602,332 893,460 22,785,884 1,588,935 308,925,643

Gross carrying value basis As at S pt m r 30, 2011Cost 15,547 65,968,413 4,091,337 475,832,264 29,341,146 3,440,733 38,250,505 6,947,427 623,887,372Accumulat d d pr cia on - (38,972,827) (3,077,677) (239,802,025) (9,738,814) (2,547,273) (15,464,621) (5,358,492) (314,961,729)

N t ook valu (NbV) 15,547 26,995,586 1,013,660 236,030,239 19,602,332 893,460 22,785,884 1,588,935 308,925,643

Deprecia on rate % per annum - 10 10 10 20 20 20-33.33 20

Net carrying value basis Year ended September 30, 2010 Op ning n t ook valu (NbV) 15,547 32,833,114 1,251,431 256,611,105 16,477,795 822,313 6,728,749 1,750,932 316,490,986Addi ons (at cost) - 362,097 - 11,531,283 5,095,176 109,727 424,834 334,350 17,857,467Disposals (at NbV) - - - (955,410) (1,120,845) - (43,021) (26,181) (2,145,457)D pr cia on charg - (3,283,312) (125,142) (21,656,348) (2,241,935) (183,833) (1,376,580) (411,278) (29,278,428)

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

Gross carrying value basis As at September 30, 2010 Cost 15,547 65,892,903 4,091,337 472,935,781 27,302,650 3,103,333 15,958,050 8,251,136 597,550,737Accumulat d d pr cia on - (35,981,004) (2,965,048) (227,405,151) (9,092,459) (2,355,126) (10,224,068) (6,603,313) (294,626,169)

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

Deprecia on rate % per annum - 10 10 10 20 20 20 20

11.1.1 Th cost of fully d pr ciat d ass ts which ar s ll in us as at S pt m r 30, 2011 is Rs 42.64million (2010: Rs 28.804 million).

11.1.2 Th d pr cia on charg for th yar has n allocat d as follows:

2011 2010 Note Rupees Rup s

Cost of sales 20 22,847,827 25,064,802Administra on xp ns s 21 1,708,100 1,971,691Selling expenses 22 6,252,137 2,241,935

30,808,064 29,278,428

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11.2 Capital work-in-progress

Civil Works 12,620,680 1,332,093Plant and machin ry 1,882,499 -

14,503,179 1,332,093

12. Intangible Assets

N t carrying valu asis

Year ended September 30, 2011 Op ning n t ook valu (NbV) 1,060,580 1,325,725Addi ons at cost 626,009 -Adjustm nts 252,945 -D l ons at NbV - -Amor za on charg (332,822) (265,145)

Closing n t ook valu (NbV) 1,606,712 1,060,580

Gross Carrying Valu asisCost 5,168,677 2,722,420Accumulat d D pr cia on (3,561,965) (1,661,840)

N t ook valu (NbV) 1,606,712 1,060,580

Amor za on rat % p r annum 20 20

12.1 Th amor za on charg for th y ar has n allocat d as follows:

Cost of sales 20 165,888 165,888Administra on xp ns s 21 166,934 99,257

332,822 265,145

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2011 2010 Note Rupees Rup s13. Biological assets

Liv stock 5,308,000 5,155,933Tr s 1,825,000 1,720,000

7,133,000 6,875,933

14. Stores, spares and loose tools

General Stores 3,063,015 2,745,315engin ring Stor s 11,783,742 10,429,863

14,846,757 13,175,178L ss: Provision for o sol t it ms

- engin ring Stor 14.1 (5,552,855) (748,329)

9,293,902 12,426,849

14.1 Provision for obsolete items - Engineering Store

Op ning balanc 748,329 -Add: Provision for th y ar 20 4,804,526 748,329

Closing balance 5,552,855 748,329

15. Stock in trade

Raw mat rials [including in transit Rs 5.154 million(2010: Rs 13.010 million)] 134,850,876 89,632,486

Packing mat rials 91,672,779 83,007,687Work in Proc ss - -Finished goods 92,744,149 60,277,747

319,267,804 232,917,920

L ss: Provision for o sol t it ms

- Raw Mat rial 15.1 (7,201,828) (2,000,000)

312,065,976 230,917,920

15.1 Provision for obsolete items - Raw material

Opening balance 2,000,000 -Add: Provision for o sol t it ms 20 5,201,828 2,000,000

Closing balance 7,201,828 2,000,000

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2011 2010 Note Rupees Rup s

16. Trade debts

Considered good 63,244,881 40,716,666Consid r d dou ul 3,938,305 1,967,249

67,183,186 42,683,915

L ss: Provision for dou ul d ts 16.1 (3,938,305) (1,967,249)

63,244,881 40,716,666

16.1 Provision for doub ul debts

Opening balance 1,967,249 -Add: Provision for th y ar 1,971,056 1,967,249

3,938,305 1,967,249L ss: bad d ts wri n o against provision - -

Closing balance 3,938,305 1,967,249

17. Advances, deposits, prepayments and other receivables

Advanc s - consid r d good- To mploy s 2,576,281 2,516,016- To suppli rs 10,676,307 3,408,871Pr paym nts 1,062,545 137,500L rs of cr dit - margins, d posits, op ning charg s, tc. 50,653 312,801Claims recoverable from the government- Incom tax r funda l 10,005,839 37,377,535- Sal s tax 3,311,898 6,084,394

13,317,737 43,461,929Customs deposit receivable 69,876 69,876Du from r lat d par s 17.1 3,342,674 7,735Other receivables 2,941,331 1,338,004

34,037,404 51,252,732

17.1 Due from related par es

Haid r Fruit Grow rs (Privat ) Limit d 95,035 7,735Director 3,166,396 -Punja Fruit Grow rs (Privat ) Limit d 81,243 -

3,342,674 7,735

Th s r lat to normal usin ss of th company and ar int r st fr .

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2011 2010 Rupees Rup s 18. Cash and bank balances

balanc s at anks on curr nt accounts 12,982,315 7,249,445Special account related to dividend payable 207,339 454,807Cash in hand 390,117 423,345

13,579,771 8,127,597

19. Sales

Gross sales- Local 1,874,324,156 1,517,350,583- export 149,691,435 82,832,276

2,024,015,591 1,600,182,859

L ss: Sal s r turns 31,112,041 38,225,275R at s 174,457,030 155,455,869Trad promo on 24,198,203 29,640,223

229,767,274 223,321,367

1,794,248,317 1,376,861,492

Local sal s ar xclusiv of sal s tax of Rs 255.413 million (2010: Rs 215.969 million).

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2011 2010

Note Rupees Rup s

20. Cost of sales

Raw and packing mat rial consum d 1,205,497,986 894,985,643Salari s, wag s and oth r n ts 20.1 96,247,430 72,850,283Furnace oil consumed 13,455,330 19,545,960Freight 7,400,245 9,754,334Trav lling and v hicl running 2,921,939 1,100,945R pairs and maint nanc 13,592,284 12,645,942Pow r, Wat r and Gas 38,005,950 31,450,719Insurance 3,673,009 4,190,059R nt, rat s and tax s 1,124,507 173,639D pr cia on on op ra ng x d ass ts 11.1 22,847,827 25,064,802Amor za on of intangi l ass ts 12.1 165,888 165,888Provision for o sol t stock 15.1 5,201,828 2,000,000Provision for o sol t stor s and spar s 14.1 4,804,526 748,329Other expenses 17,659,252 7,867,354

Cost of goods manufactured 1,432,598,001 1,082,543,897

Op ning nish d goods 60,277,747 51,247,411Closing nish d goods (92,744,149) (60,277,747)

(32,466,402) (9,030,336)

1,400,131,599 1,073,513,561

20.1 Salaries, wages and other bene ts include the following in respect of gratuity:


Current service cost 3,991,537 2,278,586Interest cost for the year 2,223,224 1,470,088Actuarial loss 157,159 126,953

6,371,920 3,875,627

In addi on to a ov Rs 0.335 million (2010: Rs 2.837 million) hav n charg d in r sp ct ofcompanys contri u on towards sta comp nsat d a s nc s.

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2011 2010 Note Rupees Rup s21. Administra on expenses

Salari s, wag s and oth r n ts 21.1 37,149,552 36,139,890Trav lling and v hicl running 4,032,206 3,449,527ent rtainm nt 906,941 588,464R pairs and maint nanc 1,372,073 1,021,589Insurance 507,247 648,689R nt, rat s and tax s 2,387,879 1,947,515Pow r, Wat r and Gas 1,558,865 1,339,254Prin ng and sta on ry 1,166,015 1,237,853Postag and t l phon xp ns s 1,527,267 1,025,601Prof ssional s rvic s 21.2 6,747,100 4,595,911D pr cia on on op ra ng x d ass ts 11.1 1,708,100 1,971,691Amor za on of intangi l ass ts 12.1 166,934 99,257Dairy expenses 4,105,249 2,713,138Advanc s wri n o - 1,796,552Other expenses 3,403,563 2,416,052

66,738,991 60,990,983


Current service cost 865,339 1,148,901Interest cost for the year 481,981 741,243Actuarial loss 34,071 64,011

1,381,391 1,954,155


21.2 Professional services

Th charg s for prof ssional s rvic s includ th following in r sp ct of auditors s rvic s for:


Statutory audit 600,000 500,000Half y arly r vi w 275,000 225,000Tax s rvic s - 1,050,000Work rs pro t par cipa on and provid nt

funds audit and sundry services 85,000 140,000Out of pock t xp ns s 95,850 80,502

1,055,850 1,995,502

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2011 2010 Note Rupees Rup s 22. Distrib u on and marke ng expenses

Salari s, wag s and oth r n ts 22.1 35,691,362 29,080,542Trav lling and v hicl running 11,281,326 9,703,173ent rtainm nt 434,549 207,348Freight 42,896,639 33,225,971export xp ns s 1,823,867 2,310,736Adv r s m nt 53,589,610 29,692,937Sal s tax on trad promo on - 432,134R pairs and maint nanc 144,013 93,501Insurance 1,381,539 1,072,341R nt, rat s and tax s 207,340 593,356Pow r, Wat r and Gas 411,177 338,907Prin ng and sta on ry 161,286 463,978Postag and t l phon 1,327,097 1,236,130D pr cia on on op ra ng x d ass ts 11.1 6,252,137 2,241,935Service charges to distributors 15,732,864 14,221,023Provision for dou ul d ts 16.1 1,971,056 1,967,249Other expenses 10,098,320 9,111,692

183,404,182 135,992,953


Current service cost 2,294,388 1,426,715Interest cost for the year 1,277,939 920,482Actuarial loss 90,337 79,490

3,662,664 2,426,687


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2011 2010 % %

26.1 Tax charge reconcilia on

Num rical r concilia on tw n th av rag c v tax rat and th applica l tax rat .

Applica l tax rat 35.00 35.00

Tax ct of amounts that ar :- ex mpt for tax purpos s (0.60) (1.05)

- Tax cr dits 1.39 0.79Tax ct und r pr sump v tax r gim and oth rs (3.94) (1.88)

e ct of chang in prior tax y ar 0.26 -

(2.89) (2.14)

Av rag c v tax rat charg d to pro t and loss account 32.11 32.86

27. Transac ons with related par es

Th r lat d par s compris associat d und rtakings and k y manag m nt p rsonn l. Th companyin th normal cours of usin ss carri s out transac ons with various r lat d par s. Amounts dufrom and to r lat d par s ar shown und r r c iva l s and paya l s and r mun ra on of th k ymanag m nt p rsonn l is disclos d in not 28. Oth r signi cant transac ons with r lat d par s aras follows:

2011 2010 Rupees Rup sDescrip on

Purchas of goods 4,315,883 108,019,847Dona ons 562,280 562,280

4,878,163 108,582,127

All transac ons with r lat d par s hav n carri d out on comm rcial t rms and condi ons.

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28. Remunera on of Chairman, Chief Execu ve and Execu ves

28.1 Th aggr gat amount charg d in th nancial stat m nts for th y ar for r mun ra on,including c rtain n ts, to th Chairman, Chi f ex cu v and ex cu v s of th Company isas follows:

Cha irman Chief Execu ve Execu ve

2011 2010 2011 2010 2011 2010

Rupees Rupees Rupees Rupees Rupees Rupees

Manag rial r mun ra on 2,715,343 2,200,968 7,829,182 7,427,880 10,089,404 4,920,841

R r m nt b n ts - 522,732 1,148,916 1,053,228 6,218,000 2,046,682

Hous r nt allowanc 1,110,822 990,455 2,718,358 2,537,759 4,540,232 2,214,378

U li s 339,209 158,454 604,082 563,974 1,008,940 492,084Club expenses 254,805 200,165 18,549 23,623 - -

bonus 685,675 265,950 - - 3,041,183 911,309

5,105,854 4,338,724 12,319,087 11,606,464 24,897,759 10,585,294

Number of persons 2* 1 1 1 13 7

*Mr. S.M. Mohsin was appoint d as th Chairman in plac of Mr. M hdi Mohsin with ctfrom Jun 01, 2011.

Th Company aslo provid s Chairman and Chi f ex cu v with fr us of on company

maitan d car ach.

28.2 Th Chairman, Chi f ex cu v and ex cu v s ar n tl d to r im urs m nt of m dicalxp ns s upto an amount qual to thr asic salari s.

28.3 Remunera on to other directors

Aggr gat amount charg d in th nancial stat m nts for th y ar for f to 7 Dir ctors (2010:7 Dir ctors) is Rs 130,000 (2010: Rs 22,000). A Dir ctor is also provid d with two companymaintain d cars and r sid n al phon s.

29. Capacity and produc on

Th capacity of th plant is not d t rmina l as it is a mul product plant capa l of producings v ral int rchang a l products.

Actual produc onin cartons

2011 2010

Groceries 1,271,104 1,105,591Conf c on ri s 395,638 351,778

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2011 2010 Note Rupees Rup s30. Cash generated from opera ons

Pro t for tax 108,146,266 69,207,763Adjustm nts for:

D pr cia on on op ra ng x d ass ts 30,808,064 29,278,428Amor za on on intangi l s 332,822 265,145Pro t on sal of prop rty, plant and quipm nt (532,227) (814,818)

R r m nt n ts 14,278,619 11,879,781Pro t on r valua on of liv stock (1,679,367) (2,078,050)

Pro t on r valua on of tr s (201,800) (32,333) Advanc s wri n o - 1,796,552

exchang gain (374,565) -

Provision for dou ul d ts - trad1,971,056

1,967,249Provision for o sol t stock 5,201,828 2,000,000Provision for o sol t stor s and spar s 4,804,526 748,329Finance cost 34,584,206 35,343,261

Pro t for working capital chang s 197,339,428 149,561,307e ct on cash ow du to working capital chang s

- Incr as in stor s, spar s and loos tools (1,671,579) (393,897)- (Incr as )/D cr as in stock in trad (86,349,884) 27,464,607- (Incr as )/D cr as in trad d ts (24,499,271) 15,990,268- (Incr as )/D cr as in advanc s, d posits pr paym nts

and other receivables (9,524,066) 6,147,948- Incr as in cr ditors, accru d and oth r lia ili s 64,271,620 15,372,376

(57,773,180) 64,581,302

Cash g n rat d from op ra ons 139,566,248 214,142,609

31. Cash and cash equivalents

Cash and ank alanc s 18 13,579,771 8,127,597Short t rm running nanc s (154,794,581) (166,615,728)

(141,214,810) (158,488,131)

32. Earnings per share

32.1 Basic earnings per share

N t pro t for th y ar Rupees 73,425,209 46,467,874

Weighted average number of ordinary shares Number 5,040,000 5,040,000

basic arnings p r shar Rupees 14.57 9.22

32.2 Diluted earnings per share

Th r is no dilu on ct on th asic arnings p r shar of th company as th company hasno such commitm nts.

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33. Financial risk management

33.1 Financial risk factors

Th Companys ac vi s xpos it to a vari ty of nancial risks: mark t risk (including curr ncyrisk, oth r pric risk and int r st rat risk), cr dit risk and liquidity risk. Th Companys ov rallrisk manag m nt programm focus s on th unpr dicta ility of nancial mark ts and s ks tominimis pot n al adv rs cts on th nancial p rformanc .

Risk manag m nt is carri d out y th board of Dir ctors (th board). Th board provid sprincipl s for ov rall risk manag m nt, as w ll as polici s cov ring sp ci c ar as such asfor ign xchang risk, int r st rat risk, cr dit risk and inv stm nt of xc ss liquidity. Alltr asury r lat d transac ons ar carri d out within th param t rs of th s polici s.

(a) Market risk

(i) Currency risk

Curr ncy risk is th risk that th fair valu or futur cash ows of a nancial instrum nt willuctuat caus of chang s in for ign xchang rat s. Curr ncy risk aris s mainly from futurcomm rcial transac ons or r c iva l s and paya l s that xist du to transac ons in for igncurr nci s.

Th Company is xpos d to curr ncy risk arising from various curr ncy xposur s, primarilywith r sp ct to th Unit d Stat s Dollar (USD). Curr ntly, th Companys for ign xchang riskxposur is r strict d to th amounts r c iva l / paya l from / to th for ign n s. Th

Companys xposur to curr ncy risk at th r por ng dat is as follows:

2011 2010

Trad d ts - USD 131,771 146,140

Th following signi cant xchang rat s w r appli d during th y ar:

Rupees per USD

Av rag rat 85.75 84.50R por ng dat rat 87.40 86.00

If th func onal curr ncy, at r por ng dat , had uctuat d y 5% against th USD with alloth r varia l s h ld constant, th impact on pro t for taxa on for th y ar would hav

n Rs 575,839 (2010: Rs 628,403) high r / low r, mainly as a r sult of xchang gains /loss s on transla on of for ign xchang d nominat d nancial instrum nts. Curr ncy risks nsi vity to for ign xchang mov m nts has n calculat d on a symm tric asis.

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(ii) Other price risk

Oth r pric risk r pr s nts th risk that th fair valu or futur cash ows of a nancialinstrum nt will uctuat caus of chang s in mark t pric s (oth r than thos arising fromint r st rat risk or curr ncy risk), wh th r thos chang s ar caus d y factors sp ci c to thindividual nancial instrum nt or its issu r, or factors a c ng all similar nancial instrum ntstrad d in th mark t. Th Company is not xpos d to quity pric risk sinc th r ar noinv stm nts in quity s curi s. Th Company is also not xpos d to commodity pric risksinc it has a div rs por olio of commodity suppli rs.

(iii) Interest rate risk

Int r st rat risk r pr s nts th risk that th fair valu or futur cash ows of a nancialinstrum nt will uctuat caus of chang s in mark t int r st rat s.

Th Company has no signi cant long-t rm int r st- aring ass ts. Th Companys int r strat risk aris s from short t rm orrowings. borrowings o tain d at varia l rat s xpos thCompany to cash ow int r st rat risk.

At th alanc sh t dat , th int r st rat pro l of th Companys int r st aring nancialinstrum nts was:

2011 2010 Rupees Rup s Floa ng rate instruments

Financial liabili es Short t rm running nanc s - s cur d (154,794,581) (166,615,728)

Net exposure (154,794,581) (166,615,728)

Fair value sensi vity analysis for xed rate instruments

Th Company do s not account for any x d rat nancial ass ts and lia ili s at fair valuthrough pro t or loss. Th r for , a chang in int r st rat at th alanc sh t dat would nota ct pro t or loss of th Company.

Cash ow sensi vity analysis for variable rate instruments

If int r st rat s on long t rm nanc s and short t rm running nanc , at th y ar nd dat ,uctuat y 1% high r/low r with all oth r varia l s h ld constant, pro t for taxa on forth y ar would hav n Rs 1.548 million (2010: Rs 1.726 million) high r / low r, mainly as ar sult of high r / low r int r st xp ns on oa ng rat orrowings.

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(b) Credit risk

Cr dit risk r pr s nts th risk that on party to a nancial instrum nt will caus a nancial lossfor th oth r party y failing to discharg an o liga on. Cr dit risk aris s from d posits withanks and oth r r c iva l s.

(i) Exposure to credit risk

Th carrying amount of nancial ass ts r pr s nts th maximum cr dit xposur . Thmaximum xposur to cr dit risk at th r por ng dat was as follows:


Long term loans and deposits - 751,753Trad d ts 67,183,186 42,683,915Loans, advances, deposits, prepayments and

other receivables 8,910,940 4,174,556Cash and ank alanc s 13,189,654 7,704,252

89,283,780 55,314,476

The age of trade receivables and related impairment loss at balance sheet date is asfollows:

Th ag of trad r c iva l s

Past Du ut not impair d- Not past du 56,930,405 27,722,367- Past du 0 - 180 days 6,314,475 12,853,141- Past du 181 - 365 days 152,667 141,158- Ov r 365 days 3,785,639 1,967,249

67,183,186 42,683,915

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(ii) Credit quality of major nancial assets

Th cr dit quality of major nancial ass ts that ar n ith r past du nor impair d can ass ss d y r f r nc to xt rnal cr dit ra ngs (if availa l ) or to historical informa on a outcount rparty d fault rat :

Ra ng Ra ngShort term Long term Agency 2011 2010

(Rupees) (Rupees)

Naonal bank of Pakistan A-1+ AAA JCR-VIS 1,589,126 462,967MCb bank Limitd A1+ AA+ PACRA 442,425 472,233Allid bank Limitd A1+ AA PACRA - 1,301,323Royal bank of Scotland A1+ AA PACRA - 671,157Standard Chart rd A1+ AA PACRA 1,212,443 Hai bank Limitd A-1+ AA+ JCR-VIS 9,945,660 4,796,572

13,189,654 7,704,252

Du to th Companys long standing usinss r laonships with ths count rpar s and a r giving duconsidraon to th ir strong nancial standing, managmnt dos not xpct non-prformanc y thscount r par s on th ir o ligaons to th Company. Accordingly, th crdit risk is minimal.

(c) Liquidity risk

Liquidity risk is th risk that an n ty will ncount r diculty in m ng o ligaons associatd with nancial

lia ili s.

Th Company manags liquidity risk y maintaining sucint cash and th availa ility of funding throughan adquat amount of commi d crdit facili s. At Sptm r 30, 2011, th Company had Rs 390million availa l orrowing limits from nancial ins tuons and Rs 13.580 million cash and ank alancs.

Th following ar th contractual maturi s of nancial lia ili s as at Sptm r 30, 2011:

Carrying Less than One to ve More than amount one year years ve years Rupees

Trad and othr payals 156,402,724 156,402,724 - -

Accrud nanc cost 2,887,660 2,887,660 - -

159,290,384 159,290,384 - -

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Th following ar th contractual maturi s of nancial lia ili s as at S pt m r 30, 2011:

Carrying Less than One to ve More than amount one year years ve years Rupees

Trad and othr payals 84,666,106 84,666,106 - -Accrud nanc cost 4,466,921 4,466,921 - -

89,133,027 89,133,027 - -

33.2 Fair values of nancial assets and liabili es

Th carrying valu s of all nancial ass ts and lia ili s r ct d in th nancial stat m ntsapproximat th ir fair valu s. Fair valu is d t rmin d on th asis of o j c v vid nc atach r por ng dat .

Loans and receivables


33.3 Financial instruments by categories

Assets as per balance sheet

Long term loans and deposits - 751,753Trad d ts 67,183,186 42,683,915Loans, advances, deposits, prepayments

and other receivables 8,910,940 4,174,556Cash and ank alanc s 13,189,654 7,704,252

89,283,780 55,314,476

Financial liabili es at


Liabilies as per balance sheet Trad and othr payals 156,402,724 84,666,106

Accrud nanc cost 2,887,660 4,466,921

159,290,384 89,133,027

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I/We

of

being a member of Mitchells Fruit Farms Limited, hereby appoint

(Nam )

of

or failing him/her

(Nam )

of

anoth r m m r of th Company, as my/our proxy in my/our a s nc to a nd and vot for m /us and on

my/our half at th S v nty Ninth Annual G n ral M ng of th Company to h ld on January 30, 2012

at 11:00 a.m. at th R gist r d O c of th Company locat d at 39-A, D-1, Gul rg III, Lahor .

Signed this day of 2012

Pl as a xrevenue

stamp

Pl as quot folio num r Signatur of M m r

IMPORTANT:

This instrum nt, appoin ng a proxy, duly compl t d, must r c iv d at th R gist r d O c of th

Company locat d at 39-A, D-1, Gul rg III, Lahor not lat r than 48 hours for th sch dul d m of th

m ng.

PROXY FORM MITCHELLS FRUIT FARMS LIMITED79th Annual G n ral M ng

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2011 Michelles

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