Contents · EBITDA - operations 329 322 983 1,169 Depreciation & amortization (413) (383) (1,192) (1,147) ... Jan - Sep 2011 Jan - Sep 2010. 5 (Towfiq Habib Chinoy) Chairman Lahore,

2

4

6

8

9

10

11

12

22

23

24

26

27

28

29

30

ContentsContentsCompany information

Directors’ report

Condensed interim balance sheet

Condensed interim profit and loss account

Condensed interim statement of comprehensive income

Condensed interim statement of changes in equity

Condensed interim cash flow statement

Notes to and forming part of the condensed interim financial information

Packages Group condensed consolidated interim financial information

Directors’ report

Condensed consolidated interim balance sheet

Condensed consolidated interim profit and loss account

Condensed consolidated interim statement of comprehensive income

Condensed consolidated interim statement of changes in equity

Condensed consolidated interim cash flow statement

Notes to and forming part of the condensed consolidated interim financial information

2

COMPANY INFORMATION

Board of DirectorsTowfiq Habib Chinoy(Chairman)Syed Hyder Ali(Chief Executive & Managing Director)Khalid YacobMatti Ilmari NaakkaMuhammad AurangzebShahid Aziz SiddiquiShamim Ahmad KhanSyed Aslam MehdiSyed Shahid AliWazir Ali KhojaAli Aslam(Alternate to Matti Ilmari Naakka)

AdvisorSyed Babar Ali

Company SecretaryAdi J. Cawasji

Executive CommitteeSyed Hyder Ali - Chairman(Executive Director)Syed Aslam Mehdi - Member(Executive Director)Khalid Yacob - Member(Executive Director)

Audit CommitteeShamim Ahmad Khan - Chairman(Non-Executive Director)Matti Ilmari Naakka - Member(Non-Executive Director)Muhammad Aurangzeb - Member(Non-Executive Director)Syed Shahid Ali - Member(Non-Executive Director)Wazir Ali Khoja - Member(Non-Executive Director)Syed Aslam Mehdi - Member(Executive Director)Adi J. Cawasji - Secretary(Company Secretary)

Business Strategy CommitteeSyed Hyder Ali - Chairman(Executive Director)Syed Aslam Mehdi - Member(Executive Director)Khalid Yacob - Member(Executive Director)

System and TechnologyCommittee

Syed Aslam Mehdi - Chairman(Executive Director)Khalid Yacob - Member(Executive Director)Suleman Javed - Member

Human Resources CommitteeTowfiq Habib Chinoy - Chairman(Non-Executive Director)Syed Hyder Ali - Member(Executive Director)Syed Aslam Mehdi - Member(Executive Director)Asma Javed - Secretary

Rating Agency: PACRA

Company RatingLong-Term: AAShort-Term: A1+

AuditorsA.F. Ferguson & Co.Chartered Accountants

Legal AdvisorsHassan & Hassan - LahoreOrr, Dignam & Co. - Karachi

Bankers & LendersAllied Bank LimitedAskari Bank LimitedBank Alfalah LimitedBank Al-Habib LimitedBankIslami Pakistan LimitedBarclays Bank PLC, PakistanCitibank N.A.Deutsche Bank A.G.Dubai Islamic Bank Pakistan LimitedFaysal Bank LimitedHabib Bank LimitedHabib Metropolitan Bank LimitedHSBC Bank Middle East LimitedInternational Finance Corporation (IFC)JS Bank LimitedMCB Bank LimitedMeezan Bank LimitedNational Bank of PakistanNIB Bank LimitedSamba Bank LimitedSilk Bank LimitedStandard Chartered Bank (Pakistan) LimitedThe Bank of Tokyo - Mitsubishi UFJ, LimitedUnited Bank Limited

3

Head Office & WorksShahrah-e-Roomi,P.O. Amer Sidhu,Lahore - 54760, PakistanPABX : (042) 35811541-46

: (042) 35811191-94Fax : (042) 35811195

: (042) 35820147

Factories

Kasur FactoryBulleh Shah Paper Mill (BSPM)10-km Kasur Kot Radhakishan Road,District Kasur, PakistanTel. : (049) 2717335-43Fax : (049) 2717220

Karachi FactoryPlot No. 6 & 6/1, Sector 28,Korangi Industrial Area,Karachi-74900, PakistanTel. : (021) 35045320, 35045310Fax : (021) 35045330

Offices

Registered Office & Regional Sales Office4th Floor, The ForumSuite No. 416 - 422, G-20, Block 9,Khayaban-e-Jami, Clifton,Karachi-75600, PakistanPABX : (021) 35874047-49

: (021) 35378650-52: (021) 35831618, 35833011

Fax : (021) 35860251

Regional Sales Office2nd Floor, G.D. Arcade73-E, Fazal-ul-Haq Road, Blue Area,Islamabad-44000, PakistanPABX : (051) 2276765

: (051) 2276768: (051) 2278632

Fax : (051) 2829411

Zonal Sales OfficesC-2, Hassan Arcade Nusrat Road,Multan Cantt. - 60000, PakistanTel. & Fax: (061) 4504553

9th Floor State Life Building,2 - Liaquat Road,Faisalabad, PakistanTel. : (041) 2540842Fax : (041) 2540815

Uzair EnterprisesTeer Chowk Bhuta Road,Sukkur - 65200, PakistanTel. & Fax: (071) 5616138

M. Hamza Traders15-D Gul Plaza, Opp: Charsadda Bus Stand,Peshawar-25000, PakistanCell : 03018650486Tel. : (091) 2043719

Haq BrothersTehsil Road, Jhelum-49600, PakistanCell : 03215332095

: 03335179706

Shares RegistrarFAMCO Associates (Pvt.) Limited1st Floor, State Life Building No. 1-AI. I. Chundrigar Road,Karachi-74000, PakistanPABX : (021) 32420755

: (021) 32427012: (021) 32425467

Fax : (021) 32426752

Web Presencewww.packages.com.pk

The Directors of Packages Limited are pleased to submit to its shareholders, the nine months report alongwith the condensed interim un-audited financial statements of the Company for the period ended September30, 2011.

Financial and Operational Performance

The comparison of the un-audited results for the period ended September 30, 2011 as against September30, 2010 is as follows:

Financial - Rupees in millionNet sales 4,954 4,583 14,945 14,344

EBITDA - operations 329 322 983 1,169Depreciation & amortization (413) (383) (1,192) (1,147)EBIT - operations (84) (61) (209) 22Finance costs (441) (302) (1,191) (898)Other operating income / (expenses) - net 34 57 190 141Investment income 27 102 729 892

(Loss) / earnings before tax (464) (204) (481) 157Taxation 78 48 (114) (34)

(Loss) / earnings after tax (386) (156) (595) 123

(Loss) / earnings per share - rupees (4.58) (1.85) (7.06) 1.46

During the first nine months of the year 2011, your Company achieved net sales of Rs. 14,945 million.The EBITDA of the Company declined by Rs. 186 million during the nine months of 2011 over correspondingvalues of 2010 due to the following reasons:

• Increase in fuel and power costs due to usage of high cost furnace oil resulting from natural gasshortages and operational issues at boiler;

• Increase in wood pulp and local waste paper prices; and

• Planned shutdown of Paper Machine (PM-6) for capacity expansion that has been successfullycompleted and commercial production started with improvement in operating results in Q3-2011.

Your Company has now entered the recovery phase as the boiler is stabilized and raw material prices arecoming down to a more sustainable level. These factors have impacted operating results positively andthe Company has generated EBITDA of Rs. 329 million during third quarter of 2011 as compared to EBITDAof Rs. 134 million generated during second quarter of 2011.

Production Statistics

The production statistics for the period under review along with its comparison with the correspondingperiod are as follows:

Paper and paper board produced - tons 46,892 43,927 115,131 133,636Paper and paper board converted - tons 27,146 22,288 86,190 73,145Plastics all sorts converted - tons 3,035 2,682 9,598 8,185

DIRECTORS’ REPORT FOR THE NINE MONTHS ENDEDSEPTEMBER 30, 2011

4

July - Sep2011

July - Sep2010

Jan - Sep2011

Jan - Sep2010

For the third quarter Cumulative

July - Sep2011

July - Sep2010

Jan - Sep2011

Jan - Sep2010

5

(Towfiq Habib Chinoy)ChairmanLahore, October 18, 2011

(Syed Hyder Ali)Chief Executive & Managing DirectorLahore, October 18, 2011

A review of the operations of different business units is as follows:

Packaging Operations

Packaging Operations have registered external sales of Rs. 10,099 million during the nine months of 2011as compared to Rs. 7,324 million for the corresponding period of last year thus achieving a sales growthof 38%. Packaging Operations have achieved EBITDA growth of Rs. 414 million resulting from revenuegrowth, better product mix and product price rationalisation.

Consumer Products

Consumer Products Division has recorded external sales of Rs. 1,670 million during the first nine monthsof 2011 as compared to Rs. 1,333 million for the corresponding period of last year thus achieving a salesgrowth of 25% with corresponding EBITDA growth of Rs. 37 million.

Paper & Board Operations

During the third quarter of the year 2011, Paper & Board Operations have yielded better results than thepreceding two quarters of the year despite energy shortages. Paper Machine (PM-6) has started generatingpositive operational results after successful completion of its re-build project with enhanced capacityutilisation. The operating performance is expected to improve substantially in the coming months uponstart-up of production of high value added liquid packaging board and bleached board.

In respect of unfair competition faced by writing and printing paper from imported paper that is being soldat dumping prices in the local market, we are actively pursuing our applications for fixation of anti-dumpingduty and Import Trade Price (ITP) with National Tariff Commission (NTC) and the custom authorities.

The Company is also aggressively working on alternate energy project using bio-mass technology andincreasing waste paper collection points for continuous supply of local raw material.

Future Outlook

It may be noted that the main cause of the losses in Paper & Board manufacturing is the curtailment ofgas forcing the Company to use high cost furnace oil. The Company is fully seized of the problem and isworking towards implementation of alternate energy project using bio-mass technology.

The Company will continue its focus on improving shareholder's value through cost control, product andprocess optimisation, price rationalisation and efficient working capital management. Stabilizing pulp andlocal waste paper prices are also expected to contribute positively towards operating margins despite gasand energy shortages. We remain confident that economic prospects will improve in the future and thediscount rate-cut announced by the State Bank of Pakistan should improve the net margins.

Company's Staff and Customers

As we continue with our mission, we would like to record our appreciation of continued patronage of ourvalued customers and sustained efforts of our employees.

EQUITY AND LIABILITIES

CAPITAL AND RESERVES

Authorised capital150,000,000 (2010: 150,000,000)

ordinary shares of Rs. 10 each 1,500,000 1,500,000

22,000,000 (2010: 22,000,000)10 % non-voting cumulative preference shares /

convertible stock of Rs. 190 each 4,180,000 4,180,000

Issued, subscribed and paid up capital84,379,504 (2010: 84,379,504)

ordinary shares of Rs. 10 each 843,795 843,795Reserves 28,729,666 24,218,774Preference shares / convertible stock reserve 1,605,875 1,605,875Unappropriated (loss) / profit (108,090) 261,441

31,071,246 26,929,885

NON-CURRENT LIABILITIES

Long-term finances 6 8,742,482 7,956,291Deferred income tax liabilities 2,121,183 2,168,000Retirement benefits - 167Deferred liabilities 221,594 149,173

11,085,259 10,273,631

CURRENT LIABILITIES

Current portion of long-term finances - secured 6 113,095 14,286Finances under mark up arrangements - secured 2,458,442 141,231Trade and other payables 1,709,363 1,794,059Accrued finance cost 637,291 471,712

4,918,191 2,421,288

CONTINGENCIES AND COMMITMENTS 7 - -

47,074,696 39,624,804

PACKAGES LIMITEDCONDENSED INTERIM BALANCE SHEET (UN-AUDITED)as at September 30, 2011

6

Note (Rupees in thousand)

September 30,2011

December 31,2010

Un-audited Audited

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 9 18,440,458 17,861,486Intangible assets 1,716 2,392Investment property 30,354 31,588Capital work-in-progress 10 372,722 753,328Investments 17,217,984 12,219,037Long-term loans and deposits 129,449 128,429Retirement benefits 95,872 94,557

36,288,555 31,090,817

CURRENT ASSETS

Stores and spares 1,200,767 1,049,950Stock-in-trade 5,549,771 3,669,151Trade debts 2,298,510 1,643,275Loans, advances, deposits, prepayments

and other receivables 574,171 265,361Income tax receivable 11 945,752 766,107Cash and bank balances 217,170 1,140,143

10,786,141 8,533,987

47,074,696 39,624,804

The annexed notes 1 to 23 form an integral part of this condensed interim financial information.

Syed Aslam MehdiDirector

Syed Hyder AliChief Executive & Managing Director

Towfiq Habib ChinoyChairman

7


September 30,2011

December 31,2010

Un-audited Audited

Local sales 5,763,877 5,093,698 17,679,264 15,793,784Export sales 65,695 333,848 196,339 1,075,189

5,829,572 5,427,546 17,875,603 16,868,973

Less: Sales tax and excise duty 870,721 836,759 2,916,035 2,496,636Commission 5,005 7,901 14,625 28,298

875,726 844,660 2,930,660 2,524,934

4,953,846 4,582,886 14,944,943 14,344,039Cost of sales 12 (4,738,327) (4,377,326) (14,246,052) (13,494,560)

Gross profit 215,519 205,560 698,891 849,479

Administrative expenses (149,160) (120,271) (472,241) (380,655)Distribution and marketing costs (150,097) (147,104) (435,849) (447,167)Projects expenditure 13 - - (49,487) -Other operating expenses 14 (178) 11,255 (12,398) (15,728)Other operating income 34,191 46,090 252,174 157,299

(Loss) / profit from operations (49,725) (4,470) (18,910) 163,228

Finance costs (441,462) (301,938) (1,191,233) (897,816)Investment income 26,844 101,996 729,059 891,931

(Loss) / profit before taxation (464,343) (204,412) (481,084) 157,343Taxation 15 78,000 48,706 (114,214) (34,294)

(Loss) / profit after taxation (386,343) (155,706) (595,298) 123,049

(Loss) / earnings per shareBasic Rupees 16 (4.58) (1.85) (7.06) 1.46Diluted Rupees 16 (4.58) (1.85) (7.06) 1.46


8

PACKAGES LIMITEDCONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)for the quarter and nine months ended September 30, 2011




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

Quarter ended Nine months endedSeptember 30,

2011September 30,

2010September 30,

2011September 30,

2010

PACKAGES LIMITEDCONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)for the quarter and nine months ended September 30, 2011


Other comprehensive (loss) / income

(Deficit) / surplus on re-measurement ofavailable for sale financial assets (6,302,617) 785,282 5,010,892 2,387,447

Total comprehensive (loss) / incomefor the period (6,688,960) 629,576 4,415,594 2,510,496





9

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


2011September 30,

2010September 30,

2011September 30,

2010

Balance as on December 31, 2009 (audited) 843,795 2,876,893 561,912 13,660,333 1,605,875 3,868,099 23,416,907

Appropriation of fundsTransferred from profit and loss account - - - 3,000,000 - (3,000,000) -

Transaction with ownersFinal dividend for the year ended December 31, 2009

Rs. 3.25 per share - - - - - (274,233) (274,233)

Profit for the period - - - - - 123,049 123,049

Other comprehensive incomeSurplus on re-measurement of available

for sale financial assets - - 2,387,447 - - - 2,387,447

Balance as on September 30, 2010 (un-audited) 843,795 2,876,893 2,949,359 16,660,333 1,605,875 716,915 25,653,170

Loss for the period - - - - - (455,474) (455,474)

Other comprehensive incomeSurplus on re-measurement of available

for sale financial assets - - 1,732,189 - - - 1,732,189

Balance as on December 31, 2010 (audited) 843,795 2,876,893 4,681,548 16,660,333 1,605,875 261,441 26,929,885

Appropriation of fundsTransferred to profit and loss account - - - (500,000) - 500,000 -

Transaction with ownersFinal dividend for the year ended December 31, 2010

Rs. 3.25 per share - - - - - (274,233) (274,233)

Loss for the period - - - - - (595,298) (595,298)

Other comprehensive incomeSurplus on re-measurement of available - - 5,010,892 - - - 5,010,892

for sale financial assets

Balance as on September 30, 2011 (un-audited) 843,795 2,876,893 9,692,440 16,160,333 1,605,875 (108,090) 31,071,246


PACKAGES LIMITEDCONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)for the nine months ended September 30, 2011




10


Sharecapital

Sharepremium

Generalreserve

Unappro-priatedprofit /(loss) Total

Fair valuereserve

Preferenceshares /

convertiblestock reserve

PACKAGES LIMITEDCONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)for the nine months ended September 30, 2011




11

Cash flow from operating activities

Cash (used in) / generated from operations 18 (1,903,185) 1,306,015Finance cost paid (1,025,654) (590,108)Taxes paid (340,676) (415,869)Payments for accumulating compensated absences (7,564) (13,797)Retirement benefits paid (31,298) (24,919)

Net cash (used in) / generated from operating activities (3,308,377) 261,322

Cash flow from investing activities

Fixed capital expenditure (1,407,811) (480,971)Net increase in long-term loans and deposits (1,020) (1,796)Proceeds from sale of property, plant and equipment 157,103 21,634Dividends received 709,475 765,023

Net cash (used in) / generated from investing activities (542,253) 303,890

Cash flow from financing activities

Increase in long-term loans 885,000 -Dividend paid (274,554) (271,418)

Net cash generated from / (used in) financing activities 610,446 (271,418)

Net (decrease) / increase in cash and cash equivalents (3,240,184) 293,794Cash and cash equivalents at the beginning of the period 998,912 369,223

Cash and cash equivalents at the end of the period 19 (2,241,272) 663,017


Note

Nine months endedSeptember 30,

2011September 30,

2010(Rupees in thousand)

1. The Company and its activities

Packages Limited (The Company) is a public limited company incorporated in Pakistan and is listedon Karachi, Lahore and Islamabad Stock Exchanges. It is principally engaged in the manufacture andsale of paper, paperboard, packaging materials and tissue products.

2. Basis of preparation

This condensed interim financial information is un-audited and has been prepared in accordance withthe requirements of the International Accounting Standard (IAS) 34 - 'Interim Financial Reporting' andprovisions of and directives issued under The Companies Ordinance, 1984. In case where requirementsdiffer, the provisions of or directives issued under The Companies Ordinance, 1984 have been followed.This condensed interim financial information does not include all the information required for annualfinancial statements and therefore should be read in conjunction with the annual financial statementsfor the year ended December 31, 2010.

3. Significant accounting policies

3.1 The accounting policies adopted for the preparation of this condensed interim financial informationare the same as those applied in the preparation of preceding annual published financial statementsof the Company for the year ended December 31, 2010 except for the adoption of new accountingpolicies as referred to in note 3.2.1.

3.2 Initial application of standards, amendments or an interpretation to existing standards

The following amendments to existing standards have been published that are applicable to theCompany's financial statements covering annual periods, beginning on or after the following dates:

3.2.1 Amendments to published standards effective in current year

New and amended standards, and interpretations mandatory for the first time for the financial yearbeginning January 01, 2011 and their impact on this condensed interim financial information isgiven below:

- IAS 1 (Amendments), clarifies that an entity will present an analysis of other comprehensiveincome for each component of equity, either in the statement of changes in equity or in the notesto the financial statements, accordingly, the Company has presented analysis of other comprehensiveincome for each component of equity in the statement of changes in equity.

- IAS 24 (Revised), ‘Related party disclosures’, issued in November 2009. It supersedes IAS 24,‘Related party disclosures’, issued in 2003. The revised standard clarifies and simplifies thedefinition of a related party and removes the requirement for government-related entities todisclose details of all transactions with the government and other government-related entities.The application of this standard has no material impact on the Company's financial statements.

- IAS 32 (Amendment), ‘Classification of right issues’ issued in October 2009. The amendmentaddresses the accounting for right issues that are denominated in a currency other than thefunctional currency of the issuer. Provided certain conditions are met, such right issues are nowclassified as equity regardless of the currency in which the exercise price is denominated.

PACKAGES LIMITEDNOTES TO AND FORMING PART OF THE CONDENSED INTERIMFINANCIAL INFORMATION (UN-AUDITED)for the quarter and nine months ended September 30, 2011

12

Previously, these issues had to be accounted for as derivative liabilities. The application of thisamendment has no material impact on the Company's financial statements.

- IFRIC 19, ‘Extinguishing financial liabilities with equity instruments’. The interpretation clarifiesthe accounting by an entity when the terms of a financial liability are renegotiated and result inthe entity issuing equity instruments to a creditor of the entity to extinguish all or part of thefinancial liability (debt for equity swap). It requires a gain or loss to be recognised in profit orloss, which is measured as the difference between the carrying amount of the financial liabilityand the fair value of the equity instruments issued. If the fair value of the equity instrumentsissued cannot be reliably measured, the equity instruments should be measured to reflect thefair value of the financial liability extinguished. The application of this interpretation has no materialimpact on the Company's financial statements.

- IFRIC 14 (Amendment), ‘Prepayments of a minimum funding requirement’. The amendmentscorrect an unintended consequence of IFRIC 14, ‘IAS 19 – The limit on a defined benefit asset,minimum funding requirements and their interaction’. Without the amendments, entities are notpermitted to recognise as an asset some voluntary prepayments for minimum funding contributions.This was not intended when IFRIC 14 was issued, and the amendments correct this. Theapplication of this amendment has no material impact on the Company's financial statements.

3.2.2 Standards, amendments and interpretations to existing standards that are not yet effective andhave not been early adopted by the Company

The following amendments and interpretations to existing standards have been published and aremandatory for the Company's accounting periods beginning on or after January 1, 2012 or laterperiods, but the Company has not earlier adopted them:

- IFRS 7, ‘Financial instruments: Disclosures’ (Amendments). These are applicable on accountingperiods beginning on or after July 01, 2011. These amendments arise from the IASB’s reviewof off-balance-sheet activities. The amendments will promote transparency in the reporting oftransfer transactions and improve users’ understanding of the risk exposures relating to transfersof financial assets and the effect of those risks on an entity’s financial position, particularly thoseinvolving securitisation of financial assets. Earlier application is permitted. The Company willapply these amendments from January 01, 2012 and does not expect to have a material impacton its financial statements.

- IFRS 9, ‘Financial instruments’, addresses the classification, measurement and derecognitionof financial assets and financial liabilities. The standard is not applicable until January 01, 2013but is available for early adoption. This is the first part of a new standard on classification andmeasurement of financial assets and financial liabilities that will replace IAS 39, ‘Financialinstruments: Recognition and measurement’. IFRS 9 has two measurement categories: amortisedcost and fair value. All equity instruments are measured at fair value. A debt instrument ismeasured at amortised cost only if the entity is holding it to collect contractual cash flows andthe cash flows represent principal and interest. For liabilities, the standard retains most of theIAS 39 requirements. These include amortised-cost accounting for most financial liabilities, withbifurcation of embedded derivatives. The main change is that, in cases where the fair valueoption is taken for financial liabilities, the part of a fair value change due to an entity's own creditrisk is recorded in other comprehensive income rather than the income statement, unless thiscreates an accounting mismatch. This change will mainly affect financial institutions. There willbe no impact on the Company’s accounting for financial liabilities, as the new requirements onlyaffect the accounting for financial liabilities that are designated at fair value through profit or loss,and the Company does not have any such liabilities.

13

- IFRS 12, ‘Disclosures of interests in other entities’. This is applicable on accounting periodsbeginning on or after January 01, 2013. This standard includes the disclosure requirements forall forms of interests in other entities, including joint arrangements, associates, special purposevehicles and other off balance sheet vehicles. The Company will apply this standard from January01, 2013.

- IFRS 13, ‘Fair value measurement’. This is applicable on accounting periods beginning on orafter January 01, 2013. This standard aims to improve consistency and reduce complexity byproviding a precise definition of fair value and a single source of fair value measurement anddisclosure requirements for use across IFRSs. The requirements, which are largely alignedbetween IFRSs and US GAAP, do not extend the use of fair value accounting but provide guidanceon how it should be applied where its use is already required or permitted by other standardswithin IFRSs or US GAAP. The Company will apply this standard from January 01, 2013.

- IAS 1, ‘Presentation of Financial Statement’ (Amendment). This is applicable on accountingperiods beginning on or after July 01, 2012. The main change resulting from these amendmentis a requirement for entities to group items presented in Other comprehensive income (OCI) onthe basis of whether they are potentially recycled to profit or loss (re-classification adjustments).The amendment does not address which items are presented in OCI. The Company will applythis amendment from January 01, 2013 and does not expect to have a material impact on itsfinancial statements.

- IAS 12, ‘Income taxes’ (Amendments). These are applicable on accounting periods beginningon or after January 01, 2012. IAS 12, ‘Income taxes', currently requires an entity to measurethe deferred tax relating to an asset depending on whether the entity expects to recover thecarrying amount of the asset through use or sale. It can be difficult and subjective to assesswhether recovery will be through use or through sale when the asset is measured using the fairvalue model in IAS 40, ‘Investment property’. This amendment therefore introduces an exceptionto the existing principle for the measurement of deferred tax assets or liabilities arising oninvestment property measured at fair value. As a result of the amendments, SIC 21, ‘Incometaxes - recovery of revalued non-depreciable assets’, will no longer apply to investment propertiescarried at fair value. The amendments also incorporate into IAS 12 the remaining guidancepreviously contained in SIC 21, which is withdrawn. The Company will apply these amendmentsfrom January 01, 2012 and does not expect to have a material impact on its financial statements.

- IAS 19, ‘Employee benefits’ (Amendment). This is applicable on accounting periods beginningon or after January 01, 2013. The amendment will eliminate the corridor approach and calculatefinance costs on a net funding basis. The Company will apply this amendment from January01, 2013 and its impact on retained earnings will be Rs. 315.937 million due to recognition ofcurrent unrealised actuarial losses on its defined benefit plans.

4. The provision for taxation for the nine months ended September 30, 2011 has been made usingthe tax rate that would be applicable to expected total annual earnings.

5. The preparation of interim financial information requires management to make judgements, estimatesand assumptions that affect the application of accounting policies and the reported amounts ofassets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed interim financial information, the significant judgements made bymanagement in applying the Company’s accounting policies and the key sources of estimationuncertainty were the same as those that applied to the financial statements for the year endedDecember 31, 2010, with the exception of changes in estimates that are required in determiningthe provision for income taxes as referred to in Note 4.

14

6. Long-term finances

Note

Opening balanceLocal currency loans - secured 5,500,000 5,500,000Preference shares / convertible stock - unsecured 2,470,577 2,470,577

7,970,577 7,970,577Loans obtained during the period

Local currency loans - secured 6.1 885,000 -

8,855,577 7,970,577

Current portion shown under current liabilitiesLocal currency loans - secured (113,095) (14,286)

Closing balance 8,742,482 7,956,291

6.1 During the current year, the Company has obtained long-term loan facility of Rs. 1,000 million froma commercial bank for its plant expansion activities. Out of the total financing facility, refinancingunder SBP-LTFF scheme upto Rs. 338 million has currently been utilised and the remaining Rs. 115million will be availed for payment of outstanding supplier commitments when due.

7. Contingencies and commitments

7.1 Contingencies

(i) Claims against the Company not acknowledged as debts Rs. 18.915 million (December 31,2010: Rs. 17.952 million).

(ii) Post dated cheques not provided in the condensed interim financial information have beenfurnished by the Company in favour of the Collector of Customs against custom levies aggregatedto Rs. 174.704 million (December 31, 2010: Rs. 88.769 million) in respect goods imported.

7.2 Commitments in respect of

(i) Letters of credit and contracts for capital expenditure Rs. 72.760 million (December 31, 2010:Rs. 782.605 million).

(ii) Letters of credit and contracts other than for capital expenditure Rs. 587.019 million (December31, 2010: Rs. 761.100 million).

(iii) The amount of future payments under operating leases and Ijarah financing and the period inwhich these payments will become due are as follows:

Not later than one year 274,641 219,612Later than one year and not later than five years 812,900 1,118,159

1,087,541 1,337,771

15

(Rupees in thousand)

September 30,2011

December 31,2010

Un-audited Audited


September 30,2011

December 31,2010

Un-audited Audited

8. Dividends

Ordinary dividend relating to the year ended December 31, 2010 amounting to Rs. 274.233 million(December 31, 2009 : Rs. 274.233 million) was paid during the period. The Company also paidpreference dividend relating to the year ended December 31, 2010 amounting to Rs. 412.050 million(December 31, 2009 : Rs. 193.435 million) during the period.

9. Property, plant and equipment

Opening book value 17,861,486 19,161,332

Additions during the period 9.1 1,788,416 244,972Transferred from investment

property (at book value) - 20,970

Disposals during the period (at book value) (19,688) (36,073)Depreciation charged during the period (1,189,756) (1,529,715)

(1,209,444) (1,565,788)

Closing book value 18,440,458 17,861,486

9.1 Following is the detail of additions during the period

Freehold land 2,185 13,495Building on freehold land 13,886 14,226Plant and machinery 1,729,683 123,717Other equipment 14,208 41,686Furniture and fixtures - 186Vehicles 28,454 51,662

1,788,416 244,97210. Capital work-in-progress

Civil works 19,721 19,695Plant and machinery (including in transit

Rs. Nil (2010 : Rs. 301.537 million) 240,178 570,995Advances 111,156 162,302Others 1,667 336

372,722 753,328

11. Income tax receivable includes Rs. 36.013 million which represents the additional taxes paid as aresult of the disallowance of the tax credits on reframing of the following assessments.

16


September 30,2011

December 31,2010

Un-audited Audited

12. Cost of sales

Opening work-in-process 320,607 174,197 209,916 145,140Materials consumed 3,005,731 2,768,660 8,422,833 7,602,933Salaries, wages and amenities 327,254 272,545 1,008,520 848,422Fuel and power 1,141,160 732,558 2,986,352 2,156,842Production supplies 119,273 100,542 352,654 331,256Excise duty and sales tax 56 295 549 1,448Rent, rates and taxes 86,761 75,839 262,236 145,466Insurance 21,612 19,198 62,406 57,189Repairs and maintenance 154,300 139,290 459,361 376,944Packing expenses 39,704 25,889 111,600 88,725Depreciation on property, plant

and equipment 405,893 375,970 1,171,781 1,127,002Amortisation on intangible assets 3 4 12 13Technical fee and royalty 4,890 4,893 16,779 10,949Travelling and conveyance 8,665 5,205 23,523 14,105Other expenses 66,178 50,379 195,467 151,494

5,702,087 4,745,464 15,283,989 13,057,928

Closing work-in-process (240,035) (170,835) (240,035) (170,835)

Cost of goods produced 5,462,052 4,574,629 15,043,954 12,887,093

Opening stock of finished goods 1,860,378 1,230,217 1,786,201 2,034,987

Cost of goods available for sale 7,322,430 5,804,846 16,830,155 14,922,080

Closing stock of finished goods (2,584,103) (1,427,520) (2,584,103) (1,427,520)

4,738,327 4,377,326 14,246,052 13,494,560

17



2011September 30,

2010September 30,

2010September 30,

2011

In 1987, the Income Tax Officer (ITO) re-opened the Company’s assessments for the accountingyears ended December 31, 1983 and 1984 disallowing primarily tax credit given to the Companyunder section 107 of the Income Tax Ordinance, 1979. The tax credit amounting to Rs. 36.013million on its capital expenditure for these years was refused on the grounds that such expenditurerepresented an extension of the Company’s undertaking which did not qualify for tax credit underthis section in view of the Company’s location. The assessments for these years were revised bythe ITO on these grounds and taxes reassessed were adjusted against certain sales tax refunds andthe tax credits previously determined by the ITO and set off against the assessments framed forthese years.

The Company had filed an appeal against the revised orders of the ITO before the Commissionerof Income Tax (Appeals) [CIT(A)], Karachi. The Commissioner has, in his order issued in 1988, heldthe assessments reframed by the ITO for the years 1983 and 1984 presently to be void and of nolegal effect. The ITO has filed an appeal against the Commissioner’s order with the Income TaxAppellate Tribunal (ITAT). The ITAT has in its order issued in 1996 maintained the order of CIT(A).The assessing officer after the receipt of the appellate order passed by CIT (A), has issued noticesunder section 65 of the Income Tax Ordinance, 1979 and the Company has filed a writ petitionagainst the aforesaid notices with the High Court of Sindh, the outcome of which is still pending.

13. These represent expenses incurred on prospective projects which are not capitalised under InternationalFinancial Reporting Standards.

14. Other operating expenses includes Rs. 11.945 million (2010: Nil) in respect of impairment chargedon the Company's investment in shares of IGI Investment Bank Limited.

15. Taxation

For the periodCurrent 43,000 49,000 161,000 161,000Deferred (121,000) (98,000) (261,000) (127,000)

(78,000) (49,000) (100,000) 34,000Prior periods

Current - (1,706) 31 (1,706)Deferred - 2,000 214,183 2,000

- 294 214,214 294(78,000) (48,706) 114,214 34,294

Prior period tax charge includes a tax credit available to the Company written off under section 113of the Income Tax Ordinance, 2001 amounting to Rs. 183.493 million (2010: Nil) available tillDecember 31, 2013 in view of management's estimate that this tax credit may not be utilised tillDecember 31, 2013 due to sufficent unused tax losses available to the Company for adjustmentagainst future profits.

16. (Loss) / Earnings per share

16.1 Basic (loss) / earnings per share(Loss) / profit

for the period - Rupees in thousand (386,343) (155,706) (595,298) 123,049Weighted average number

of ordinary shares - Numbers 84,379,504 84,379,504 84,379,504 84,379,504(Loss) / earnings

per share - Rupees (4.58) (1.85) (7.06) 1.4616.2 Diluted (loss) / earnings per share

(Loss) / profit forthe period - Rupees in thousand (386,343) (155,706) (595,298) 123,049

Return on preferenceshares / convertible stock- net of tax - Rupees in thousand 93,726 90,650 278,122 268,995

(292,617) (65,056) (317,176) 392,044Weighted average number

of ordinary shares - Numbers 84,379,504 84,379,504 84,379,504 84,379,504Weighted average number of

notionally convertedpreference shares /convertible stock - Numbers 21,686,842 21,686,842 21,686,842 21,686,842

106,066,346 106,066,346 106,066,346 106,066,346(Loss) / earnings

per share - Rupees (2.76) (0.61) (2.99) 3.70The effect of the conversion of the preference shares / convertible stock into ordinary shares is anti-dilutive,accordingly the diluted EPS is restricted to the basic EPS.

18



2011September 30,

2010September 30,

2010September 30,

2011



2011September 30,

2010September 30,

2010September 30,

2011

17. Transactions with related parties

Relationship with the Nature of transactionsCompany

i. SubsidiariesPurchase of goods and services 636,802 459,969Sale of goods and services 14,064 15,739Dividend income 84,707 57,065Rental income 9,705 8,831Management and technical fee - income 16,508 15,047Sale of property, plant & equipment 1,218 -

ii. Associated undertakingsPurchase of goods and services 524,364 328,232Purchase of property, plant

& equipment - 950Sale of goods & services 28,857 22,765Insurance premium 117,087 94,230Insurance claims 25,984 434Dividend income 135,839 123,511Commission earned 3,723 3,199

iii. Other related partiesPurchase of goods and services 89,749 29,758Sale of goods & services 2,180,268 4,331,606Dividend income 505,477 673,970Rental income 26,642 22,194Mark up Income 46 -Investments made 750,000 1,153,252Proceeds from sale of investments 752,798 1,164,837

iv. Post employment benefitplans Expense charged in respect of

retirement benefits plans 114,748 94,415

v. Key managementpersonnel Salaries and other employee benefits 45,017 35,530

All transactions with the related parties have been carried out on commercial terms and conditions.

Period-end balances

Receivable from related parties 382,113 241,471Payable to related parties 178,183 92,773

These are in the normal course of business and are interest free.

19


September 30,2011

September 30,2010

Nine months ended


September 30,2011

December 31,2010

Un-audited Audited

18. Cash (used in) / generated from operations

(Loss) / profit before taxation (481,084) 157,343Adjustments for:

Depreciation on property, plant and equipment 1,189,756 1,144,927Amortisation on intangible assets 677 78Depreciation on investment property 1,234 2,141Impairment on long-term investment 11,945 -Provision for accumulating compensated absences 79,985 53,785Provision for retirement benefits 29,816 31,927Net profit on disposal of property, plant and equipment (137,415) (9,090)Finance costs 1,191,233 897,816Dividend income (726,024) (854,547)

Profit before working capital changes 1,160,123 1,424,380

Effect on cash flow due to working capital changes

Increase in trade debts (655,235) (253,831)Increase in stores and spares (150,817) (131,949)(Increase) / decrease in stock-in-trade (1,880,620) 324,495Increase in loans, advances, deposits, prepayments

and other receivables (292,261) (142,340)(Decrease) / increase in trade and other payables (84,375) 85,260

(3,063,308) (118,365)

(1,903,185) 1,306,015

19. Cash and cash equivalents

Cash and bank balances 217,170 798,467Finances under mark up arrangements - secured (2,458,442) (135,450)

(2,241,272) 663,017

20. Financial risk management

The Company's activities expose it to a variety of financial risks: market risk (including currencyrisk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidityrisk.

The condensed interim financial information does not include all financial risk management informationand disclosures required in the annual financial statements, and should be read in conjunction withthe Company's annual financial statements as at December 31, 2010.

There have been no changes in the risk management policies since the year end.

20


September 30,2011

September 30,2010

Nine months ended

21. Date of authorisation for issue

This condensed interim financial information was authorised for issue on October 18, 2011 by theBoard of Directors of the Company.

22. Events after balance sheet date

No material events have occurred subsequent to September 30, 2011.

23. Corresponding figures

In order to comply with the requirements of International Accounting Standard 34 - 'Interim FinancialReporting', the condensed interim balance sheet and condensed interim statement of changes inequity have been compared with the balances of annual audited financial statements of precedingfinancial year, whereas, the condensed interim profit and loss account, condensed interim statementof comprehensive income and condensed interim cash flow statement have been compared withthe balances of comparable period of immediately preceding financial year.

Corresponding figures have been re-arranged, wherever necessary, for the purposes of comparison.However, no significant re-arrangements have been made.

21




Packages GroupCondensed Consolidated Interim

Financial Information

(Towfiq Habib Chinoy)ChairmanLahore, October 18, 2011

(Syed Hyder Ali)Chief Executive & Managing DirectorLahore, October 18, 2011

23

DIRECTORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTSFOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011

(Rupees in million)

Jan - Sep2011

Jan - Sep2010

The Directors of Packages Limited are pleased to present the un-audited consolidated financial statementsof the Group for the nine months ended September 30, 2011.

Group results

The comparison of the un-audited results for the nine months ended September 30, 2011 as againstSeptember 30, 2010 is as follows:

Net sales 16,705 15,962Profit from operations 215 438Share of profit of associates 321 167Investment income 509 711(Loss) / profit before tax (198) 374

During the current period, the Group achieved sales of Rs. 16,705 million with profit from operations ofRs. 215 million. Decrease in profit from operations of Rs. 223 million over corresponding values of 2010is mainly attributable to planned shutdown of Paper Machine (PM-6) for capacity expansion, usage offurnace oil due to natural gas shortages, unprecedented rise in pulp prices and operational issues at boilerthat adversely impacted product margins of the Parent Company.

A brief review of the operational performance of the Group subsidiaries is as follows:

DIC PAKISTAN LIMITED

DIC Pakistan Limited has registered sales of Rs. 1,426 million during the nine months of 2011 as comparedto Rs. 1,203 million of corresponding period of 2010 achieving sales growth of 19%. The Company hasgenerated profit before tax of Rs. 128 million during nine months of 2011 as against Rs. 98 million generatedduring corresponding period of 2010. The Company will continue its focus on price rationalisation, operatingcost control and efficient working capital management.

PACKAGES LANKA (PRIVATE) LIMITED

Packages Lanka (Private) Limited has achieved sales of SLR 1,048 million during nine months of 2011as compared to SLR 1,078 million for the corresponding period of 2010. Company has managed togenerate profit before tax of SLR 73 million during the nine months of 2011 as against SLR 170 millionfor the corresponding period of 2010. This decline in profit is mainly attributable to increase in raw materialprices in the international market which could not be passed on completely to the customers. The Companyis focusing on increased productivity and capacity utilisation to improve margins in the coming months.

24

EQUITY AND LIABILITIES

CAPITAL AND RESERVES

Authorised capital150,000,000 (2010: 150,000,000)

ordinary shares of Rs. 10 each 1,500,000 1,500,000

22,000,000 (2010: 22,000,000)10 % non-voting cumulative preference shares /

convertible stock of Rs. 190 each 4,180,000 4,180,000

Issued, subscribed and paid up capital84,379,504 (2010: 84,379,504)

ordinary shares of Rs. 10 each 843,795 843,795Reserves 28,758,049 24,238,689Preference shares / convertible stock reserve 1,605,875 1,605,875Unappropriated (loss) / profit (147,577) 577,487

31,060,142 27,265,846

NON-CONTROLLING INTEREST 210,199 213,718

31,270,341 27,479,564NON-CURRENT LIABILITIES

Long-term finances 6 8,742,482 7,956,291Deferred income tax liabilities 2,706,735 2,348,704Retirement benefits - 167Deferred liabilities 244,164 163,853

11,693,381 10,469,015

CURRENT LIABILITIES

Current portion of long-term finances - secured 6 113,095 14,286Finances under mark up arrangements - secured 2,890,340 511,439Trade and other payables 1,860,651 1,896,664Accrued finance cost 641,282 475,249Provision for taxation 18,308 46,094

5,523,676 2,943,732

CONTINGENCIES AND COMMITMENTS 7 - -

48,487,398 40,892,311

PACKAGES GROUPCONDENSED CONSOLIDATED INTERIM BALANCE SHEET (UN-AUDITED)as at September 30, 2011


September 30,2011

December 31,2010

Un-audited Audited




25

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 8 18,766,939 18,209,643Intangible assets 13,352 16,099Investment property 5,344 5,589Capital work-in-progress 9 394,256 753,328Investments in associates 11 3,584,707 3,530,286Other long-term investments 12 13,692,076 8,681,184Long-term loans and deposits 129,931 139,943Retirement benefits 95,872 94,557

36,682,477 31,430,629

CURRENT ASSETS

Stores and spares 1,229,601 1,080,181Stock-in-trade 6,117,387 4,163,403Trade debts 2,643,316 1,947,316Loans, advances, deposits, prepayments

and other receivables 586,093 282,616Income tax receivable 994,733 821,717Cash and bank balances 233,791 1,166,449

11,804,921 9,461,682

48,487,398 40,892,311

The annexed notes 1 to 25 form an integral part of this condensed consolidated interim financial information.


September 302011

December 31,2010

Un-audited Audited

Local sales 6,535,759 5,654,951 19,604,206 17,506,665Export sales 65,695 344,710 199,083 1,116,012

6,601,454 5,999,661 19,803,289 18,622,677

Less: Sales tax and excise duty 975,077 880,714 3,083,890 2,629,715Commission 5,005 8,212 14,750 30,899

980,082 888,926 3,098,640 2,660,614

5,621,372 5,110,735 16,704,649 15,962,063

Cost of sales 13 (5,284,666) (4,788,381) (15,641,037) (14,734,463)

Gross profit 336,706 322,354 1,063,612 1,227,600

Administrative expenses (173,028) (150,494) (543,809) (444,555)Distribution and marketing costs (164,212) (147,501) (478,378) (472,595)Projects expenditure 14 - - (49,487) -Other operating expenses 15 (3,040) 8,606 (22,197) (24,223)Other operating income 29,308 43,549 244,778 152,153

Profit from operations 25,734 76,514 214,519 438,380

Finance costs (457,553) (317,796) (1,241,347) (942,522)Investment income - 77,833 508,512 711,354Share of profit of associates 105,322 59,497 320,785 167,185

(Loss) / profit before taxation (326,497) (103,952) (197,531) 374,397

TaxationGroup 45,692 15,826 (592,080) (115,484)Associates (41,424) (18,124) (118,580) (52,985)

4,268 (2,298) (710,660) (168,469)


Attributable to:

Equity holders of the parent (334,685) (119,360) (950,831) 157,266Non-controlling interest 12,456 13,110 42,640 48,662

(322,229) (106,250) (908,191) 205,928

Combined (loss) / earnings per shareBasic Rupees 16 (3.97) (1.41) (11.27) 1.86Diluted Rupees 16 (3.97) (1.41) (11.27) 1.86





26

PACKAGES GROUPCONDENSED CONSOLIDATED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)for the quarter and nine months ended September 30, 2011

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


2011September 30,

2010September 30,

2011September 30,

2010

PACKAGES GROUPCONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)for the quarter and nine months ended September 30, 2011




27


Other comprehensive (loss) / income

Exchange differences on translationof foreign subsidary 12,389 13,066 10,709 27,227

(Deficit) / surplus on re-measurement ofavailable for sale financial assets (6,302,617) 785,282 5,010,892 2,387,447

Other comprehensive (loss) / incomefor the period (6,290,228) 798,348 5,021,601 2,414,674

Total comprehensive (loss) / incomefor the period (6,612,457) 692,098 4,113,410 2,620,602

Attributable to:Equity holders of the parent (6,627,506) 676,253 4,068,529 2,566,241Non-controlling interest 15,049 15,845 44,881 54,361

(6,612,457) 692,098 4,113,410 2,620,602




2011September 30,

2010September 30,

2011September 30,

2010

PACKAGES GROUPCONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)for the nine months ended September 30, 2011




28

Balance as on December 31, 2009 (audited, restated) 843,795 2,876,893 5,230 561,912 13,660,333 1,605,875 4,003,965 23,558,003 186,388 23,744,391

Appropriation of fundsTransferred from profit & loss account - - - - 3,000,000 - (3,000,000) - - -

Transactions with the ownerFinal dividend for the year ended

December 31, 2009 Rs. 12 per share - - - - - - - - (33,183) (33,183)

Final dividend for the year endedDecember 31, 2009 Rs. 3.25 per share - - - - - - (274,233) (274,233) - (274,233)

Interim dividend for the half year endedJune 30, 2010 SLR 0.50 per share - - - - - - - - (4,464) (4,464)

Profit for the period 157,266 157,266 48,662 205,928

Other comprehensive incomeSurplus on re-measuremnet of available

for sale financial assets - - - 2,387,447 - - - 2,387,447 - 2,387,447Exchange difference on translation of

foreign subsidiary - - 21,528 - - - - 21,528 5,699 27,227

Balance as on September 30, 2010 (un-audited, restated) 843,795 2,876,893 26,758 2,949,359 16,660,333 1,605,875 886,998 25,850,011 203,102 26,053,113

(Loss) / profit for the period - - - - - - (309,511) (309,511) 12,428 (297,083)

Other comprehensive income

Surplus on re-measuremnet of availablefor sale financial assets - - - 1,732,189 - - - 1,732,189 - 1,732,189

Exchange difference on translation offoreign subsidiary - - (6,843) - - - - (6,843) (1,812) (8,655)

Balance as on December 31, 2010 (audited) 843,795 2,876,893 19,915 4,681,548 16,660,333 1,605,875 577,487 27,265,846 213,718 27,479,564Appropriation of fundsTransferred to profit & loss account - - - - (500,000) - 500,000 - - -

Transactions with the ownerFinal dividend for the year ended

December 31, 2010 SLR. 1 per share - - - - - - - - (7,197) (7,197)

Final dividend for the year endedDecember 31, 2010. Rs 10 per share - - - - - - - - (27,653) (27,653)

Final dividend for the year endedDecember 31, 2010 Rs. 3.25 per share - - - - - - (274,233) (274,233) - (274,233)

Interim dividend for the half year endedJune 30, 2011 Rs. 4.90 per share - - - - - - - - (13,550) (13,550)

(Loss) / profit for the period - - - - - - (950,831) (950,831) 42,640 (908,191)

Other comprehensive incomeSurplus on re-measuremnet of available

for sale financial assets - - - 5,010,892 - - - 5,010,892 - 5,010,892Exchange difference on translation of

foreign subsidiary - - 8,468 - - - - 8,468 2,241 10,709

Balance as on September 30, 2011 (un-audited) 843,795 2,876,893 28,383 9,692,440 16,160,333 1,605,875 (147,577) 31,060,142 210,199 31,270,341



Sharecapital

Generalreserve

TotalEquity

Non-controlling

interestTotal

Exchangedifference ontranslationof foreignsubsidiary

Unappro-priatedprofit /(loss)

Fair Valuereserve

Sharepremium

Preferenceshares /

convertiblestock

reserve

Cash flow from operating activities

Cash (used in) / generated from operations 18 (1,660,732) 1,463,980Finance cost paid (1,075,314) (638,946)Taxes paid (434,854) (490,576)Payments for accumulating compensated absences (7,564) (15,729)Retirement benefits paid (31,298) (24,919)

Net cash (used in) / generated from operating activities (3,209,762) 293,810

Cash flow from investing activities

Fixed capital expenditure (1,460,084) (494,147)Net decrease / (increase) in long-term loans and deposits 10,012 (2,044)Proceeds from sale of property, plant and equipment 158,427 25,700Dividends received 627,802 724,496

Net cash (used in) / generated from investing activities (663,843) 254,005

Cash flow from financing activities

Increase in long-term loans 885,000 -Payment of finance lease liabilities - (19,547)Dividend paid (274,554) (271,418)Dividend paid to non-controlling interest (48,400) (33,183)

Net cash generated from / (used in) financing activities 562,046 (324,148)

Net (decrease) / increase in cash and cash equivalents (3,311,559) 223,667Cash and cash equivalents at the beginning of the period 655,010 66,805

Cash and cash equivalents at the end of the period 19 (2,656,549) 290,472


PACKAGES GROUPCONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT (UN-AUDITED)for the nine months ended September 30, 2011




Note

Nine months endedSeptember 30,

2011September 30,

2010(Rupees in thousand)

29

1. Legal status and nature of business

Packages Limited (the Parent Company) and its subsidiaries, DIC Pakistan Limited, Packages Lanka(Private) Limited and Packages Construction (Private) Limited (together, 'The Group') are engagedin the following businesses:

Packaging: Representing manufacture and sale of paper, paperboard, packing materials and tissueproducts.

Inks: Representing manufacture and sale of finished and semi finished inks.Construction: Representing all type of construction activities and development of real estate.

2. Basis of preparation

This condensed interim financial information is unaudited and has been prepared in accordance withthe requirements of the International Accounting Standard (IAS) 34 - 'Interim Financial Reporting' andprovisions of and directives issued under The Companies Ordinance, 1984. In case where requirementsdiffer, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.This condensed interim financial information does not include all the information required for annualfinancial statements and therefore should be read in conjunction with the annual financial statementsfor the year ended December 31, 2010.

3. Significant accounting policies

3.1 The accounting policies adopted for the preparation of this condensed interim financial informationare the same as those applied in the preparation of preceding annual published financial statementsof the Group for the year ended December 31, 2010 except for the adoption of new accountingpolicies as referred to in note 3.2.1.

3.2 Initial application of standards, amendments or an interpretation to existing standards

The following amendments to existing standards have been published that are applicable to theGroup's financial statements covering annual periods, beginning on or after the following dates:

3.2.1Amendments to published standards effective in current year

New and amended standards, and interpretations mandatory for the first time for the financial yearbeginning January 01, 2011 and their impact on these condensed interim financial information isgiven below:

- IAS 1 (Amendments), Clarifies that an entity will present an analysis of other comprehensiveincome for each component of equity, either in the statement of changes in equity or in thenotes to the financial statements, accordingly, the Group has presented analysis of othercomprehensive income for each component of equity in the statement of changes in equity.

- Revised IAS 24 (Revised), ‘Related party disclosures’, issued in November 2009. It supersedesIAS 24, ‘Related party disclosures’, issued in 2003. The revised standard clarifies and simplifiesthe definition of a related party and removes the requirement for government-related entitiesto disclose details of all transactions with the government and other government-related entities.The application of this standard has no material impact on the Group's financial statements.

- IAS 32 (Amendment), ‘Classification of right issues’ (amendment to IAS 32), issued in October

PACKAGES GROUPNOTES TO AND FORMING PART OF THE CONDENSED CONSOLIDATED INTERIMFINANCIAL INFORMATION (UN-AUDITED)for the quarter and nine months ended September 30, 2011

30

31

2009. The amendment addresses the accounting for right issues that are denominated in acurrency other than the functional currency of the issuer. Provided certain conditions are met,such right issues are now classified as equity regardless of the currency in which the exerciseprice is denominated. Previously, these issues had to be accounted for as derivative liabilities.The application of this amendment has no material impact on the Group's financial statements.

- IFRIC 19, ‘Extinguishing financial liabilities with equity instruments’. The interpretation clarifiesthe accounting by an entity when the terms of a financial liability are renegotiated and resultin the entity issuing equity instruments to a creditor of the entity to extinguish all or part of thefinancial liability (debt for equity swap). It requires a gain or loss to be recognised in profit orloss, which is measured as the difference between the carrying amount of the financial liabilityand the fair value of the equity instruments issued. If the fair value of the equity instrumentsissued cannot be reliably measured, the equity instruments should be measured to reflect thefair value of the financial liability extinguished. The application of this interpretation has nomaterial impact on the Group's financial statements.

- IFRIC 14 (Amendment) ‘Prepayments of a minimum funding requirement’. The amendmentscorrect an unintended consequence of IFRIC 14, ‘IAS 19 – The limit on a defined benefit asset,minimum funding requirements and their interaction’. Without the amendments, entities are notpermitted to recognise as an asset some voluntary prepayments for minimum fundingcontributions. This was not intended when IFRIC 14 was issued, and the amendments correctthis. The application of this amendment has no material impact on the Group's financialstatements.

3.2.2Standards, amendments and interpretations to existing standards that are not yet effective andhave not been early adopted by the Group

The following amendments and interpretations to existing standards have been published and aremandatory for the Group's accounting periods beginning on or after January 1, 2012 or later periods,but the Group has not early adopted them:

- IFRS 7 - ‘Financial instruments: Disclosures’ (Amendments). These are applicable on accountingperiods beginning on or after July 01, 2011. These amendments arise from the IASB’s reviewof off-balance-sheet activities. The amendments will promote transparency in the reporting oftransfer transactions and improve users’ understanding of the risk exposures relating to transfersof financial assets and the effect of those risks on an entity’s financial position, particularlythose involving securitisation of financial assets. Earlier application is permitted. The Group willapply these amendments from January 01, 2012 and does not expect to have a material impacton its financial statements.

- IFRS 9, ‘Financial instruments’, addresses the classification, measurement and derecognitionof financial assets and financial liabilities. The standard is not applicable until January 01, 2013but is available for early adoption. This is the first part of a new standard on classification andmeasurement of financial assets and financial liabilities that will replace IAS 39, ‘Financialinstruments: Recognition and measurement’. IFRS 9 has two measurement categories: amortisedcost and fair value. All equity instruments are measured at fair value. A debt instrument ismeasured at amortised cost only if the entity is holding it to collect contractual cash flows andthe cash flows represent principal and interest. For liabilities, the standard retains most of theIAS 39 requirements. These include amortised-cost accounting for most financial liabilities,with bifurcation of embedded derivatives. The main change is that 'in cases where the fair valueoption is taken for financial liabilities, the part of a fair value change due to an entity's own creditrisk is recorded in other comprehensive income rather than the income statement, unless thiscreates an accounting mismatch. This change will mainly affect financial institutions. There willbe no impact on the Group’s accounting for financial liabilities, as the new requirements onlyaffect the accounting for financial liabilities that are designated at fair value through profit orloss, and the Group does not have any such liabilities.

32

- IFRS 12 - ‘Disclosures of interests in other entities’. This is applicable on accounting periodsbeginning on or after January 01, 2013. This standard includes the disclosure requirementsfor all forms of interests in other entities, including joint arrangements, associates, specialpurpose vehicles and other off balance sheet vehicles. The Group will apply this standard fromJanuary 01, 2013.

- IFRS 13 - ‘Fair value measurement’. This is applicable on accounting periods beginning on orafter January 01, 2013. This standard aims to improve consistency and reduce complexity byproviding a precise definition of fair value and a single source of fair value measurement anddisclosure requirements for use across IFRSs. The requirements, which are largely alignedbetween IFRSs and US GAAP, do not extend the use of fair value accounting but provide guidanceon how it should be applied where its use is already required or permitted by other standardswithin IFRSs or US GAAP. The Group will apply this standard from January 01, 2013.

- IAS 1 - ‘Financial statement presentation’ (Amendment). This is applicable on accounting periodsbeginning on or after July 01, 2012. The main change resulting from these amendment is arequirement for entities to Group items presented in Other comprehensive income (OCI) on thebasis of whether they are potentially recycled to profit or loss (reclassification adjustments).The amendment does not address which items are presented in OCI. The Group will apply thisamendment from January 01, 2013 and does not expect to have a material impact on itsfinancial statements.

- IAS 12 - ‘Income taxes’ (Amendments). These are applicable on accounting periods beginningon or after January 01, 2012. IAS 12, ‘Income taxes', currently requires an entity to measurethe deferred tax relating to an asset depending on whether the entity expects to recover thecarrying amount of the asset through use or sale. It can be difficult and subjective to assesswhether recovery will be through use or through sale when the asset is measured using thefair value model in IAS 40, ‘Investment property’. This amendment therefore introduces anexception to the existing principle for the measurement of deferred tax assets or liabilities arisingon investment property measured at fair value. As a result of the amendments, SIC 21, ‘Incometaxes - recovery of revalued non-depreciable assets’, will no longer apply to investment propertiescarried at fair value. The amendments also incorporate into IAS 12 the remaining guidancepreviously contained in SIC 21, which is withdrawn. The Group will apply these amendmentsfrom January 01, 2012 and does not expect to have a material impact on its financial statements.

- IAS 19 - ‘Employee benefits’ (Amendment). This is applicable on accounting periods beginningon or after January 01, 2013. The amendment will eliminate the corridor approach and calculatefinance costs on a net funding basis. The Group will apply this amendment from January 01,2013 and its impact on retained earnings will be Rs. 315.937 million due to recognition ofcurrent unrealised actuarial losses on its defined benefit plans.

4. The provision for taxation for the nine months ended September 30, 2011 has been made using thetax rate that would be applicable to expected total annual earnings.

5. The preparation of interim financial information requires management to make judgements, estimatesand assumptions that affect the application of accounting policies and the reported amounts of assetsand liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed interim financial information, the significant judgements made bymanagement in applying the Group’s accounting policies and the key sources of estimation uncertaintywere the same as those that applied to the financial statements for the year ended December 31,2010, with the exception of changes in estimates that are required in determining the provision forincome taxes as referred to in Note 4."

33

6. Long-term finances

Opening balance:Local currency loans - secured 5,500,000 5,500,000Preference shares / convertible stock - unsecured 2,470,577 2,470,577

7,970,577 7,970,577Loans obtained during the period

Local currency loans - secured 6.1 885,000 -

8,855,577 7,970,577Current portion shown under current liabilities

Local currency loans - secured (113,095) (14,286)

Closing balance 8,742,482 7,956,291

6.1 During the current year, the Parent Company has obtained long-term loan facility of Rs. 1,000 millionfrom a commercial bank for its plant expansion activities. Out of the total financing facility, refinancingunder SBP-LTFF scheme upto Rs. 338 million has currently been utilised by the Parent Companyand the remaining Rs. 115 million will be availed for payment of outstanding supplier commitmentswhen due.

7. Contingencies and commitments

7.1 Contingencies

(i) Claims against the Group not acknowledged as debts Rs. 18.915 million (December 31, 2010:Rs. 17.952 million).

(ii) Post dated cheques and Guarantees not provided in the condensed consolidated interim financialinformation have been furnished by the Group in favour of the Collector of Customs (Pakistan)and Director General of Customs (Sri Lanka) against custom levies aggregated to Rs. 174.704million (December 31, 2010 : Rs. 88.769 million) and Rs. 5.633 million (December 31, 2010:Nil) respectively in respect of goods imported.

7.2 Commitments in respect of

(i) Letters of credit and contracts for capital expenditure Rs. 95.716 million (December 31, 2010:Rs. 782.605 million).

(ii) Letters of credit and contracts other than for capital expenditure Rs. 627.349 million (December31, 2010: Rs. 812.150 million).

(iii) The amount of future payments under operating leases and Ijarah financing and the period inwhich these payments will become due are as follows:

Not later than one year 274,641 232,167Later than one year and not later than five years 812,900 1,130,762

1,087,541 1,362,929


September 30,2011

December 31,2010

Un-audited Audited


September 30,2011

December 31,2010

Un-audited Audited

Note

8. Property, plant and equipment

Opening book value 18,209,643 19,513,093

Additions during the period 8.1 1,797,483 278,153Transfer in (at book value) - 51,270Exchange adjustment on opening cost 17,488 29,611

1,814,971 359,034

20,024,614 19,872,127

Disposals during the period (at book value) (20,565) (60,880)Depreciation charged during the period (1,230,620) (1,582,728)Exchange adjustment on opening accumulated

depreciation (6,490) (18,876)

(1,257,675) (1,662,484)

Closing book value 18,766,939 18,209,643

8.1 Following is the detail of additions during the period

Freehold land 2,185 13,495Building on freehold land 13,886 14,226Plant and machinery 1,729,683 145,472Other equipment 19,015 44,839Furniture and fixtures 910 1,312Vehicles 31,804 58,809

1,797,483 278,153

9. Capital work-in-progress

Civil works 41,255 19,695Plant and machinery (including in transit

Rs. Nil (2010: Rs. 301.537 million) 240,178 570,995Advances 111,156 162,302Others 1,667 336

394,256 753,328

10. Income tax receivable includes Rs. 36.013 million which represents the additional taxes paid as aresult of the disallowance of the tax credits on reframing of the following assessments.

In 1987, the Income Tax Officer (ITO) re-opened the Parent Company’s assessments for the accountingyears ended December 31, 1983 and 1984 disallowing primarily tax credit given to the Parent Company’sunder section 107 of the Income Tax Ordinance, 1979. The tax credit amounting to Rs. 36.013 millionon its capital expenditure for these years was refused on the grounds that such expenditure representedan extension of the Parent Company’s undertaking which did not qualify for tax credit under this sectionin view of the Parent Company’s location. The assessments for these years were revised by the ITO

34


September 30,2011

December 31,2010

Un-audited Audited

Note

on these grounds and taxes reassessed were adjusted against certain sales tax refunds and the taxcredits previously determined by the ITO and set off against the assessments framed for these years.

The Parent Company had filed an appeal against the revised orders of the ITO before the Commissionerof Income Tax (Appeals) [CIT(A)], Karachi. The Commissioner has, in his order issued in 1988, heldthe assessments reframed by the ITO for the years 1983 and 1984 presently to be void and of nolegal effect. The ITO has filed an appeal against the Commissioner’s order with the Income TaxAppellate Tribunal (ITAT). The ITAT has in its order issued in 1996 maintained the order of CIT(A). Theassessing officer after the receipt of the appellate order passed by CIT(A), has issued notices undersection 65 of the Income Tax Ordinance, 1979 and the Parent Company has filed a writ petition againstthe aforesaid notices with the High Court of Sindh, the outcome of which is still pending.

11. Investments in associates

Cost 3,758,386 3,758,386Post acquisition loss brought forward (228,100) (348,378)

3,530,286 3,410,008

Profit for the period before taxation 320,785 324,219Provision for taxation (118,580) (80,430)

202,205 243,789

3,732,491 3,653,797

Dividends received during the period (135,839) (123,511)Impairment loss (11,945) -

(147,784) (123,511)

Closing balance 11.1 3,584,707 3,530,286

11.1 In equity instruments of associated companies

Quoted

IGI Insurance Limited11,838,267 (2010: 7,625,294) fully paid ordinary

shares of Rs. 10 eachMarket value - Rs. 710.533 million

(2010: Rs. 738.815 million) 1,108,858 1,135,713

Tri-Pack Films Limited10,000,000 (2010: 10,000,000) fully paid ordinary

shares of Rs. 10 eachMarket value - Rs. 1,805 million

(2010: Rs. 1,221.60 million) 2,455,591 2,357,450

IGI Investment Bank Limited4,610,915 (2010: 4,610,915) fully paid ordinary

shares of Rs. 10 eachMarket value - Rs. 5.764 million

(2010: Rs. 13.510 million) 32,203 37,123Impairment loss (11,945) -

20,258 37,123 3,584,707 3,530,286

35


September 30,2011

December 31,2010

Un-audited Audited

12. Other long-term investments

QuotedNestle Pakistan Limited3,649,248 (2010: 3,649,248) fully paid ordinary

shares of Rs. 10 each 13,677,345 8,666,453UnquotedTetra Pak Pakistan Limited1,000,000 (2010: 1,000,000) fully paid non voting

shares of Rs. 10 each 10,000 10,000Pakistan Tourism Development Corporation Limited2,500 (2010: 2,500) fully paid ordinary

shares of Rs. 10 each 25 25Orient Match Group Limited1,900 (2010: 1,900) fully paid ordinary

shares of Rs. 100 each - -Coca-Cola Beverages Pakistan Limited500,000 (2010: 500,000) fully paid ordinary

shares of Rs. 10 each 4,706 4,70613,692,076 8,681,184

Nestle Pakistan Limited and Tetrapak Pakistan Limited are associated undertakings under theCompanies Ordinance 1984. However, for the purpose of measurement, these have been classifiedas available for sale investments as the Group does not have a significant influence over theiroperations.

13. Cost of sales

Opening work-in-process 395,615 238,224 269,221 227,609Materials consumed 3,472,599 3,089,880 9,565,895 8,554,288Salaries, wages and amenities 354,030 302,967 1,085,798 936,708Fuel and power 1,159,798 751,352 3,038,586 2,208,944Production supplies 126,703 106,208 374,031 346,364Excise duty and sales tax 56 295 549 1,448Rent, rates and taxes 85,861 75,701 259,896 145,067Insurance 21,923 19,567 63,336 58,044Repairs and maintenance 166,614 147,211 491,893 402,353Packing expenses 39,704 32,619 111,600 108,914Depreciation on property, plant

and equipment 417,187 372,409 1,205,223 1,145,836Amortisation on intangible assets 3 4 12 1 3Depreciation on assets subject to finance lease - 14,725 - 14,725Technical fee and royalty 14,262 15,315 48,288 42,079Travelling and conveyance 9,714 833 26,353 1,946Other expenses 71,797 60,426 222,093 176,971

6,335,866 5,227,736 16,762,774 14,371,309Closing work-in-process (309,913) (234,402) (309,913) (234,402)Cost of goods produced 6,025,953 4,993,334 16,452,861 14,136,907Opening stock of finished goods 1,896,999 1,268,549 1,826,462 2,071,058Cost of goods available for sale 7,922,952 6,261,883 18,279,323 16,207,965Closing stock of finished goods (2,638,286) (1,473,502) (2,638,286) (1,473,502)

5,284,666 4,788,381 15,641,037 14,734,463


September 30,2011

December 31,2010

Un-audited Audited

36


2011September 30,

2010September 30,

2010September 30,

2011( R u p e e s i n t h o u s a n d )

14. These represent expense incurred on prospective projects which are not capitalised under InternationalFinancial Reporting Standards.

15. Other operating expenses include Rs. 11.945 million (2010: Nil) in respect of impairment chargedon the Parent Company's investment in shares of IGI Investment Bank Limited.

16. Combined (loss) / Earnings per share

16.1 Combined basic (loss) / earnings per share

(Loss) / profitfor the period - Rupees in thousand (334,685) (119,360) (950,831) 157,266

Weighted average numberof ordinary shares - Numbers 84,379,504 84,379,504 84,379,504 84,379,504

(Loss) / earnings per share - Rupees (3.97) (1.41) (11.27) 1.86

16.2 Combined diluted (loss) / earnings per share

(Loss) / profit for the period - Rupees in thousand (334,685) (119,360) (950,831) 157,266

Return on preferenceshares / convertible stock - Rupees in thousand 93,726 90,650 278,122 268,995

(240,959) (28,710) (672,709) 426,261

Weighted average numberof ordinary shares - Numbers 84,379,504 84,379,504 84,379,504 84,379,504

Weighted averagenumber ofnotionally converted

preference shares /convertible stock - Numbers 21,686,842 21,686,842 21,686,842 21,686,842

106,066,346 106,066,346 106,066,346 106,066,346

(Loss) / earnings per share - Rupees (2.27) (0.27) (6.34) 4.02

The effect of the conversion of the convertible preference shares into ordinary shares is anti-dilutive,accordingly the diluted EPS is restricted to the basic EPS.


2011September 30,

2010September 30,

2010September 30,

2011( R u p e e s i n t h o u s a n d )

37

17. Transactions with related parties

Relationship with the Nature of transactionsGroup

i. Associated undertakingsPurchase of goods and services 534,086 328,232Sale of goods and services 29,029 22,765Dividend income 135,839 123,511Insurance premium 120,757 98,075Insurance claims 25,984 434Commission earned 3,752 3,460Purchase of property, plant & equipment - 950

ii. Other related partiesPurchase of goods and services 184,707 153,732Sale of goods and services 2,468,445 4,618,336Mark up Income 46 -Dividend income 505,477 673,970Rental income 26,642 22,194Royalty & technical fee - expense 31,770 29,817Investments made 750,000 1,153,252Proceeds from sale of investments 752,798 1,164,837Rebate received 414 -

iii. Post employment benefitplans Expenses charged in respect of

retirement benefit plans 120,309 99,518

iv. Key managementpersonnel Salaries and other employee benefits 56,969 41,580

All transactions with related parties have been carried out on commercial terms and conditions.

Period-end balances

Receivable from related parties 392,755 263,741Payable to related parties 109,767 36,563

These are in the normal course of business and are interest free.

38


September 30,2011

September 30,2010

Nine months ended


September 30,2011

December 31,2010

Un-audited Audited

18. Cash (used in) / generated from operations

(Loss)/ profit before taxation (197,531) 374,397Adjustments for:

Depreciation on property, plant and equipment 1,230,620 1,188,777Amortisation on intangible assets 2,747 2,149Depreciation on investment property 245 1,154Depreciation on assets subject to finance lease - 2,247Provision for accumulating compensated absences

and staff gratuity 87,875 57,513Exchange adjustments 21,707 7,802Provision for retirement benefits 29,816 31,927Profit on disposal of property, plant and equipment (137,862) (10,846)Finance costs 1,241,347 942,522Impairment on long-term investments 11,945 -Dividend income from other investments (508,512) (673,969)Share of profit from associated companies (320,785) (167,185)

Profit before working capital changes 1,461,612 1,756,488

Effect on cash flow due to working capital changes

Increase in trade debts (696,000) (274,245)Increase in stores and spares (149,420) (129,669)(Increase) / decrease in stock-in-trade (1,953,984) 211,888Increase in loans, advances, deposits, prepayments

and other receivables (286,927) (185,420)(Decrease) / increase in trade and other payables (36,013) 84,938

(3,122,344) (292,508)

(1,660,732) 1,463,980

19. Cash and cash equivalents

Cash and bank balances 233,791 830,602Finances under mark up arrangements - secured (2,890,340) (540,130)

(2,656,549) 290,472

39


September 30,2011

September 30,2010

Nine months ended

40

20. Segment information

Revenue from external customers 10,911,136 8,141,596 4,760,317 6,908,179 947,307 799,933 85,889 112,355 16,704,649 15,962,063Intersegment revenue 517,936 388,268 6,313,897 3,982,679 478,823 403,169 105,613 80,848 7,416,269 4,854,964

11,429,072 8,529,864 11,074,214 10,890,858 1,426,130 1,203,102 191,502 193,203 24,120,918 20,817,027

Segment profit/ (loss) before tax 1,195,486 990,295 (2,546,825) (1,731,696) 128,480 98,476 925,949 1,028,600 (296,910) 385,675

Segment assets 6,295,454 5,459,523 21,537,204 19,592,348 811,238 757,953 669,295 633,392 29,313,192 26,443,216

Reconciliation of (loss)/ profit

(Loss)/ profit for reportable segments (296,910) 385,675Income from Associates 184,946 43,674Intercompany consolidation adjustment (85,567) (54,952)

(Loss)/ profit before tax (197,531) 374,397

21. Financial risk management

The Group's activities expose it to a variety of financial risks: market risk (including currency risk, fairvalue interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

The condensed interim financial information does not include all financial risk management informationand disclosures required in the annual financial statements, and should be read in conjunction withthe Group's annual financial statements as at December 31, 2010.

There have been no changes in the risk management policies since the year end.

22. Detail of subsidiaries

Name of the subsidiaries

Packages Lanka (Private) Limited December 31 79.07% Sri LankaDIC Pakistan Limited December 31 54.98% PakistanPackages Construction (Private) Limited December 31 99.99% Pakistan

23. Date of authorisation for issue

This condensed consolidated interim financial information was authorised for issue on October 18,2011 by the Board of Directors of the Parent Company.

Country ofincorporation

Percentage ofholding

Accountingyear end

Packaging Division

September 30,2011

September 30,2010

Paper & Board Division Ink Division General & Others Total


September 30,2011

September 30,2010

September 30,2011

September 30,2010

September 30,2011

September 30,2010

September 30,2011

September 30,2010

September 30,2011

December 31,2010

September 30,2011

December 31,2010

September 30,2011

December 31,2010

September 30,2011

December 31,2010

September 30,2011

December 31,2010


September 30,2010

September 30,2011




41

24. Events after balance sheet date

No material events have occurred subsequent to September 30, 2011.

25. Corresponding figures

In order to comply with the requirements of International Accounting Standard 34 - 'Interim FinancialReporting', the condensed interim balance sheet and condensed interim statement of changes in equityhave been compared with the balances of annual audited financial statements of preceding financialyear, whereas, the condensed interim profit and loss account, condensed interim statement ofcomprehensive income and condensed interim cash flow statement have been compared with thebalances of comparable period of immediately preceding financial year.

Corresponding figures have been re-arranged, wherever necessary, for the purposes of comparison.However, no significant re-arrangements have been made.

Documents

Contents · EBITDA - operations 329 322 983 1,169 Depreciation & amortization (413) (383) (1,192) (1,147) ... Jan - Sep 2011 Jan - Sep 2010. 5 (Towfiq Habib Chinoy) Chairman Lahore,