CYAN - NINE MONTHS REPORT SEPTEMBER 30, 20142
Company InformationBoard of DirectorsKulsum Dawood
(Chairperson)A.SamadDawood*Ghias Uddin KhanHasan Reza-ur
RahimJonathanBilalLenihanKamran NishatSulaimanS.Mehdi
(ChiefExecutive) *ResignedonOctober27,2014
Board Audit CommitteeKamran Nishat (Chairman)Hasan Reza-ur
RahimGhias Uddin Khan
Board HR & Remuneration CommitteeGhias Uddin Khan
(Chairman)Kamran Nishat Hasan Reza-ur Rahim
Board Investment CommitteeHasan Reza-ur Rahim (Chairman)Kulsum
Dawood JonathanBilalLenihanA.SamadDawood*
CFO & Company SecretaryFaisal Mangroria
Head of Internal Audit & ComplianceGhulam Haider
Executives**SulaimanS.Mehdi(CEO)FaisalMangroria(CFO&CS)GhulamHaider(HeadofIA&Compliance)MuhammadAnasKarimi(ManagerFinance)MuhammadAliHeemani(SeniorInvestmentAnalyst)AzamKhan(SeniorInvestmentAnalyst)
**AsdeterminedbytheBoardofDirectors
AuditorsA.F.Ferguson&Co.(CharteredAccountants)StateLifeBuilding1-C,I.I.ChundrigarRoad,Karachi.Website:www.pwc.com/pk
Tax
ConsultantsA.F.Ferguson&Co.(CharteredAccountants)StateLifeBuilding1-A,I.I.ChundrigarRoad,Karachi.Website:www.pwc.com/pk
Internal
AuditorTheInternalAuditFunctionhasbeenoutsourcedtoAnjumAsimShahidRahman(CharteredAccountants)
Share Registrar/Transfer
AgentTechnologyTrade(Pvt.)Ltd.DagiaHouse,241-C,Block-2,P.E.C.H.S.,Off:Shahrah-e-Quaideen,Karachi.Tel:(92-21)34391316-7,19&34387960-1Fax:(92-21)34391318
Legal AdvisorsMohsinTayebally&Co.1st Floor, Dime
Centre,BC-4,Block9,Kehkashan,Clifton, Karachi
BankersAlliedBankLimitedBankAlHabibLimitedBankAlFalahLimitedBarclaysBankPLCPakistan
Registered
OfficeDawoodCentre,M.T.KhanRoadKarachi-75530Website:www.cyanlimited.com
CYAN - NINE MONTHS REPORT SEPTEMBER 30, 2014 3
Directors
ReviewTheBoardofDirectorsofCyanLimitedispleasedtopresenttheun-auditedcondensedinterimfinancialinformationofthecompanyforthequarterandninemonthsendedSeptember30,2014.
Economy ReviewMacroeconomic recoveryhascontinued in
thepreviousquarterbuthashitstumblingblocks,withtheriseinpoliticalnoiseinevitablyaffectingthereformsprocessandflashfloodsshavinganestimated0.2%-0.4%offGDP.Whilethecountrycontinuestobenefitfromstepstakeninthefirsthalfoftheyear,includingEurobondissuance,3G/4Glicenseauctionandrestartofprivatization,whichledtothePkRstrengtheningagainsttheUS$,nascentriskshaveemergedoverthelastfewmonths.
Specifically, the 4th IMF trancheofUS$550mnhasbeendelayedafter
theGoPrefrainedfromraisingpowertariffsinconsiderationofpoliticalexpediencywhileOGDCsGDRhasalsobeenchallengedinthecourts.
Althoughtherearesilverliningsintheshapeoffallinginternationaloilprices(down26%fromCYTDpeak)coupledwithstrongremittances(19.5%YoYgrowthin1QFY15),externala/cstabilityis
hinged on continued reforms leading to release of IMF tranches,
successful closure to targeted
privatizationdealsandissuanceofaglobalSukuk.SuccessfulexecutionshouldtakethecountrysfxreservesbacktoUS$14.5bnbyend-Dec14whichwouldlikelykeepthePkR/US$paritystable.On
theflipside,slippagescouldsee fx reserves trailingoff towards
theUS$12bnmarkwhichwouldlikelyaddpressureonthePkR/US$paritywhere4.2%FYTDdepreciationhaslimitedCYTDappreciationtojust2.3%.TheseconcernsostensiblycompelledtheSBPtomaintaintheDRat10%inits
lastMPS,evenas1QFY15CPIhasaveraged7.5%YoYoncontainedfoodinflation.Goingforward,whiletheimpactoffloodsisexpectedtomanifestinsequentialpricepressuresoverthenextmonthorso,ahighbaseimpliesCPIislikelytostaywithinthe
