Archroma Pakistan : HALF YEARLY REPORT FOR PERIOD ENDED 31 MARCH 2022

CONTENTS

Company Information

Directors' Report

Condensed Interim Statement of Financial Position

Condensed Interim Statement of Profit or Loss and other Comprehensive Income

Condensed Interim Statement of Cash Flows

Condensed Interim Statement of Changes in Equity

Notes to the Condensed Interim Financial Statements

COMPANY INFORMATION

Chairman

Board of Directors

Audit Committee

Human Resources and Remuneration CommitteeManagement Committee

Chief Financial Officer

Company Secretary

Bankers

Auditors

Legal Advisor

Share Registrar

Registered Office

Factories

Sales & Marketing Offices

M Veqar Arif

Mujtaba Rahim

Marcos Furrer

Michel Zumstein

Shahid Ghaffar

Thomas Bucher

Yasmin Peermohammad

Shahid Ghaffar

Michel Zumstein

M Veqar Arif

Irfan Lakhani

Yasmin Peermohammad

Michel Zumstein

Mujtaba Rahim

Irfan Lakhani

Mujtaba RahimIrfan ChawalaMuhammad AltafIrfan Chawala

Irfan Lakhani

Bank Al Habib Limited

Habib Bank Limited

- Chief Executive Officer

(Alternate: Irfan Chawala) (Alternate: Naveed Kamil)

• - Chairman

  (Alternate: Naveed Kamil)

• - Secretary

• - Chairperson

• - (Alternate: Naveed Kamil)

• - Secretary

Naveed KamilQazi Naeemuddin

Habib Metropolitan Bank Limited

MCB Bank Limited

Meezan Bank Limited

National Bank of Pakistan

Standard Chartered Bank (Pakistan) Limited

KPMG Taseer Hadi & Co. Chartered Accountants

Fazleghani Advocates

FAMCO Associates (Pvt) Limited

8-F, Next to Hotel Faran, Nursery Block-6, P.E.C.H.S., Shahra-e-Faisal, Karachi

1-A/1, Sector 20,

Korangi Industrial Area, Korangi, Karachi

Petaro Road, Jamshoro

LX-10, LX-11, Landhi Industrial Area, Karachi

Katar Bund Road, Off. Multan Road,

Thokar Niaz Baig, Lahore

Website

Email

P-277, Kashmir Road, Amin Town, FaisalabadB 157 Lalarukh, Wah [e-mail]

REPORT OF BOARD OF DIRECTORS

The Directors of your Company are pleased to present the financial report for half-year ended 31 March 2022, together with the condensed interim financial information of the Company for the period ended 31 March 2022, as reviewed by the external auditors.

year. Contribution to this strong overall sales growth of 32% has come from positive contributions of all the businesses i.e Brand & Performance Textile Specialties, Coating Adhesives & Sealants, Packaging & Paper Specialties & New markets.

COMPOSITION OF BOARD

The composition of the Board is as follows:

a) Male members: 6

b) Lady member: 1

Out of the above:

a) Executive Director: 1

b) Non-Executive Directors: 4

c) Independent Directors: 2

Higher freight & logistics costs and significant devaluation of PKR against USD and other foreign currencies during the quarter has adversely impacted the bottom-line profitability, however, higher topline sales performance & growth has enabled your Company to attain after tax profits of PKR 1,314 million during the half year under review against PKR 1,102 million for the same period last year.

FUTURE OUTLOOKBUSINESS OVERVIEW

Pakistan's Textile exports continued to remain strong during the first half of the ongoing Financial Year 2022, which has also positively contributed to your Company's overall performance. However, local market Textiles' sales & construction activity slowed down during the quarter under review, mainly due to higher energy & commodity prices and double-digit inflation in other costs.

Your Company achieved net sales of PKR 13,247 million during the half year ended 31 March 2022 against PKR 10,041 million in comparison to the same period lastThe ongoing Russia-Ukraine conflict, Global Energy and Commodities price and availability situation and consequential adverse Balance of Trade of Pakistan, makes the future outlook for Textiles Exports & Construction Industry, somewhat uncertain.

However, the Management is positive that with the available export orders with our customers and Archroma's strong projects pipeline to further increase its Market Share and with our recent success and business development in New markets' Home care business, your Company is expected to maintain profitable growth momentum in short to medium term.

On behalf of the Board

Mujtaba Rahim Chief Executive Officer

Karachi: 27 April 2022

Irfan Chawala

Director

10,041

1,3141,102

13,247